Results Briefings for

Fiscal 2014 Ended March 2015

May 21, 2015

Securities ID code:6859

www.espec.co.jp

ESPEC CORP.

Table of Contents

Company Profile

Analysis per Segment for the Fiscal 2014 Ended March 31, 2015

Financial Result for the Fiscal 2014 Ended March 31, 2015

Management Plan for the Fiscal Ending March 31, 2016

Reference

Priority Strategies for the Fiscal Ending March 31, 2016

1

Company Profile

Head office

Industry-leading manufacturer of environmental test chambers; 68th year since company was founded in Osaka

2

Name

Head Office

Represented By

Established

Incorporated

Paid-up Capital

Shares Issued

Employees

Main Business

ESPEC CORP.

3-5-6, Tenjinbashi, Kita-ku, Osaka

Masaaki Ishida

July 25,1947

January 13,1954

¥6,895Million

23,781,394 Shares

1,338 (consolidated)

Manufacture and Sales of Environmental Test Chambers, Energy Device Equipment, Semiconductor Equipment, FPD Equipment and Plant Factory. After-sales Service, Commissioned Tests and others.

（As of March 31, 2015）

●ESPEC CORP. ●ESPEC TEST SYSTEM CORP. ●ESPEC KYUSHU CORP. ●ESPEC MIC CORP. △ MIC FARM OHGUCHI CORP.

●SHANGHAI ESPEC ENVIRONMENTAL EQUIPMENT CORP. ●ESPEC ENVIRONMENTAL EQUIPMENT (SHANGHAI) CO., LTD. ●ESPEC TEST EQUIPMENT (GUANGDONG) CO., LTD. △ ESPEC TEST TECHNOLOGY (SHANGHAI) CO., LTD. ●ESPEC （CHINA） LIMITED ●ESPEC KOREA CORP. △ ESPEC SOUTH EAST ASIA SDN. BHD ESPEC ENGINEERING(THAILAND)CO.,LTD※

△ESPEC EUROPE GmbH

●: Consolidated Subsidiaries △: Non-consolidated Subsidiaries

JAPAN

ASIA

Ｅ Ｕ ●ESPEC NORTH AMERICA, INC.

U.S.A.

Global Network

Consolidated Subsidiaries １０ companies

Global Network

４３countries ３３companies

Business facilities in Japan:26 Domestic agencies in Japan:48

会社概要

3

※ESPEC ENGINEERING(THAILAND)CO.,LTD

（As of March 31, 2015）

Servicing products, inspection & maintenance, calibration & other technological support ・Established in March 2015 ・Planned to become operational in July 2015

ＴＯＰＩＣＳ

Espec included in “Global Niche Top Companies Selection 100” of the Ministry of Economy, Trade and

Industry (METI)

* A METI initiative to support companies that excel in developing business overseas and are leading Japan’s economy, so as to provide direction for other enterprises and contribute to improving the global competitiveness of Japanese enterprises.

4

Testimonial

Environmental Test Chambers

Global market share 30％ or more

Temperature (& Humidity) Chambers

“Platinous J series”

Main Products Market Use Sales composition

(FY2014 )

Equip

ment B

usine

ss

Environmental Test Chambers

・Temperature & humidity chamber

・Walk-in type temperature &

humidity chamber

・Thermal shock chamber

・Vibration combined environmental test system

・Bench-top type temperature & humidity chamber

・HAST chamber

・Electronic component

and equipment market

・Automobile market

・Semiconductor market

・ Medicine, Cosmetics,

Foods and others

・For R & D

・For credibility

and evaluation

・For production

and inspection

Energy Device Equipment

・Advanced battery tester

・LIB electrode oven

・LIB safety evaluation system

・Solar battery evaluation system

・Next generation

automobile

・Secondary batteries

・Power semiconductors

・Fuel cells

・Solar battery

・For R & D

・For credibility

and evaluation

・Safety evaluation

・For production

Semiconductor Equipment

・Burn-in system

・Semiconductor evaluation system

・Instrumentation system

・Semiconductor market

・Automobile market

・For production

and inspection

・For development

and evaluation

FPD Equipment ・Single processing system vertical clean oven

・Low Oxygen Clean Oven (Temperature

Property: Maximum 500℃ )

・LCD market

・ Organic Electro-Luminescence market

・ For production

(Annealing, baking,

drying)

Servic

e

Busine

ss

After-sales Service and Engineering

・ After-sales service

・Construction around equipment ・Electronic component

and equipment market

・Automobile market

・Semiconductor market

――

・For R & D

・For credibility

and evaluation

Commissioned Tests and Facility

Rentals

・Commissioned test ・Resale

・ Equipment rental ・Calibration

Oth

er

Busine

ss

Environmental Engineering Business

Reforestation (Tree planting), Waterfront biotope restoration, urban greening

New Business Plant factory, developing and creating new businesses as a major source of profit

１６％

８０％

Summary of ESPEC Business (Per Market / Use)

４％

5

Financial Result for the Fiscal 2014 Ended March 31, 2015

6

■Orders received increased year on year in all business segments

■Net sales increased year on year in both domestic and overseas markets

・In Japan, highly versatile standard products sold strongly

Customized products were unable to reach the level achieved in the previous fiscal year,

when they sold briskly

・Overseas, China and Asia exports were firm, and sales at Chinese subsidiaries also increased

In Europe and the U.S., exports to Europe were firm, and U.S. subsidiary reached the level

achieved in the previous fiscal year, when sales were brisk

■Operating income rose 27.3% year on year due to a robust performance

by standard products with high earnings ratios

■Year-end dividend is ¥19 per share, a ¥6 increase from that initially planned; accordingly,

the annual dividend is ¥26 per share

7

Financial Highlights

FY 2013 FY 2014 Rate of

Change

Orders-Received ３１，７６０ ３６，２８７ １４．３％

Net sales ３２，０９９ ３３，６６１ ４．９％

Cost of Net Sales ２１，３６７ （６６．６％）

２１，５６７ （６４．１％）

０．９％

Gross profit １０，７３１ １２，０９４ １２．７％

SG & A ８，６５４ ９，４５０ ９．２％

Operating income ２，０７７ ２，６４３ ２７．３％

Ordinary income ２，３７０ ３，０４４ ２８．５％

Net income １，５７０ ２，１１８ ３４．９％

Summary of Profits and Losses

(millions of yen)

8

Analysis of Operating Income Increase and Decrease Factor

FY 2013

(millions of yen)

414 139

△247

△432

FY 2014

Sellin

g,

adm

inistra

tive, a

nd

perso

nnel e

xpense

s

Sellin

g, g

enera

l and a

dm

inistra

tive

expense

s

566

Increase and decrease of the

gross profit by the fluctuation of the

net sales

577

Increase and decrease of the gross profit by

the fluctuation of the cost rate

783

Increase of selling, general

and administrative expenses

857

2,643

38

23

Equipment Business

Service Business

Other Business＋Elimination

2,077 △796

△113

Com

missio

n

△116

9

Analysis of Assets and Liabilities Increase and Decrease Factor

Assets Liabilities and equity

(millions of yen)

316

798

723

642

2,640

Cash

and d

eposits

Note

s and

accounts re

ceiva

ble

-tra

de

Oth

er c

urre

nt a

ssets

Noncurre

nt a

ssets

Inta

ngib

le a

ssets

In

vestm

ent a

nd o

ther a

ssets

Note

s and a

ccounts

paya

ble

-tra

de

O

ther c

urre

nt lia

bilitie

s

Noncurre

nt lia

bilitie

s

Net a

ssets

3,761

876 196

46,792

386

Merc

handise

and

finish

ed g

oods

221 281

117

43,031

319

Raw

mate

rials

46,792

43,031

3,761

10

FY 2014 FY 2013 FY 2014 FY 2013

Statement of Cash Flow

645

1,818

Incre

ase

in n

ote

s and

accounts p

aya

ble

-tra

de

Oth

er

Tota

l opera

ting c

ash

flow

△463

Cash

divid

ends p

aid

Oth

er

△508

Tota

l financia

l cash

flow

1,314

297 O

ther

△293

Tota

l inve

stment c

ash

flo

w

Effe

ct o

f exchange ra

te c

hange

on c

ash

and c

ash

equiva

lents

(millions of yen)

Depre

cia

tion

△44 Incom

e b

efo

re in

com

e ta

xes

Incre

ase

in in

vento

ries

△62

3,309

△561

Incre

ase

in n

ote

s and

accounts re

ceiva

ble

-tra

de

△799

10 Purc

hase

of p

roperty,

pla

nt a

nd e

quip

ment

and in

tangib

le a

ssets

△728 △784

496

Net d

ecre

ase

in tim

e d

eposits

Incre

ase

in fu

nds

11

Ca

sh

in

Ca

sh

ou

t

Analysis per Segment for the Fiscal 2014 Ended March 31, 2015

12

Segment FY 2013

FY 2014

Rate of Change

Equipment Business

Orders-Received ２５，２７１ ２９，３９９ １６．３％

Net Sales ２５，８３１ ２６，９９２ ４．５％

Operating Income １，６２５ ２，１７８ ３４．０％

Service Business

Orders-Received ５，２８８ ５，５８９ ５．７％

Net Sales ５，１６８ ５，５４１ ７．２％

Operating Income ５０４ ４３０ △１４．６％

Other Business

Orders-Received １，３７５ １，５２７ １１．１％

Net Sales １，２６７ １，３５０ ６．５％

Operating Income △５２ ３４ ー

Elimination

Orders-Received △１７４ △２２７ ー

Net Sales △１６８ △２２３ ー

Operating Income △０ ０ ー

Total

Orders-Received ３１，７６０ ３６，２８７ １４．３％

Net Sales ３２，０９９ ３３，６６１ ４．９％

Operating Income ２，０７７ ２，６４３ ２７．３％

Performance by Segment (millions of yen)

13

14

FY 2014 Results and FY 2013 Applicable Products

FY ２０１３

32,099

1,161

373 82

FY ２０１４

33,661

1,562

Net Sales

2,643

2,077

＋566

Operating Income

■ Net sales increased in all businesses ■ The Equipment Business significantly

contributed to the increased operating income

Equipment Business

Service Business

Other Business

FY ２０１３ FY ２０１４

553 △73 86

(millions of yen)

Semiconductor Equipment

■In the Japanese market, net sales increased

・With highly versatile standard products, orders-received and net sales both increased from the previous fiscal year

・With customized products, orders-received increased year on year but net sales were unable to reach the level

achieved in the previous fiscal year

■In the overseas market, net sales increased

・Exports to China and other parts of Asia were firm, and sales at Chinese subsidiaries also increased

・Exports to Europe were firm, and the U.S. subsidiary was at about the same level as the previous fiscal year

■ Orders-received and net sales both increased

FPD Equipment

Energy Device Equipment ■Orders won for charge-discharge evaluation systems for secondary batteries for automobiles and for safety

testing equipment

■Power device evaluation systems performed firmly, and orders-received and net sales both increased

■Despite the orders received from certain semiconductor manufacturers and automotive-related manufacturers,

orders-received declined and net sales were mostly unchanged

■There were few large business deals, and orders-received were mostly unchanged, and net sales declined

15

Equipment Business Environmental Test Chambers

FY 2013

FY 2014

Rate of Change

Orders- Received

２５，２７１ ２９，３９９ １６．３％

Net Sales ２５，８３１ ２６，９９２ ４．５％

Operating Income

[Profit ratio (%)]

１，６２５ [６．３％]

２，１７８

[８．１％] ３４．０％

(millions of yen)

Equipment Business

16

Service Business

FY 2013

FY 2014

Rate of Change

Orders- Received ５，２８８ ５，５８９ ５．７％

Net Sales ５，１６８ ５，５４１ ７．２％

Operating Income

[Profit ratio (%)]

５０４ [９．８％]

４３０

[７．８％] △１４．６％

Commissioned Tests and Facility Rentals

■ The mainstay test consulting business saw growth in the automobile market, and both orders-

received and net sales increased

After-sales Service and Engineering

■ Both orders-received and net sales were mostly unchanged

(millions of yen)

17

Other Business

FY 2013 FY 2014

Rate of Change

Orders- Received １，３７５ １，５２７ １１．１％

Net Sales １，２６７ １，３５０ ６．５％

Operating Income

[Profit ratio (%)]

△５２ [△４．１％]

３４

[２．５％] －

■Environmental engineering in reforestation (tree planting) and the plant factory business

performed strongly

■Both orders-received and net sales increased, and earnings also improved from the

previous fiscal year, resulting in the posting of operating profit

Environmental Engineering and Plant Factory

(millions of yen)

18

19

11 12 10 10 10

42 4241 39 41

9 55 5 3

14 1618 22 23

24 24 26 24 23

0%

20%

40%

60%

80%

100%

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Other markets

Automobile market

Flat panel display

market

Electronic device and

equipment market

Semiconductor market

Breakdown of Sales by Market

Non-consolidated (Equipment business)

Sales by Region

Overseas sales ratio：３８．２％

Total: ３３，６６１million yen

(Overseas sales:１３，６０９million yen）

FY 2013 FY 2014

Overseas sales ratio：４０．４％

Total: ３２，０９９million yen

(Overseas sales:１２，２５２million yen）

20

14.1%

3.8%

14.5%

3.1%

1.3%

61.8%

1.3%

FY2013

3.5%

3.5%

2.1%

15.4%

59.6%

1.8%14.1%Taiwan

China

Korea

Europe &AmericaSouth EastAsiaOther

Japan

FY2014

Management Plan for the Fiscal Ending March 31, 2016

21

22

Targets for Consolidated Revenues and Earnings for the Fiscal Ending March 31, 2016

FY 2014 Results FY 2015 Target

Net Sales 33,661 35,000

Operating Income 2,643 2,800

Operating Income Ratio 7.9% 8.0%

(millions of yen)

Business Plan for the Fiscal Ending March 31, 2016

FY 2014 FY 2015 (Plan)

Fiscal

(Results) 2Q Second half Fiscal

Year on Year

(%)

Orders-received ３６，２８７ １８，０００ １８，５００ ３６，５００ ０．６％

Net sales ３３，６６１ １６，０００ １９，０００ ３５，０００ ４．０％

Gross profit

[Profit ratio (%)] １２，０９４

（３５．９％） ５，７４０ （３５．９％）

６，６６０ （３５．１％）

１２，４００ （３５．４％）

２．５％

Operating income (loss)[Profit ratio(%)]

２，６４３ （７．９％）

１，０００ （６．３％）

１，８００ （９．５％）

２，８００ （８．０％）

５．９％

Ordinary income (loss)[Profit ratio(%)]

３，０４４ （９．０％）

１，１００ （６．９％）

１，９００ （１０．０％）

３，０００ （８．６％）

△１．５％

Net Income

[Profit ratio (%)] ２，１１８

（６．３％） ７５０

（４．７％） １，３５０

（７．１％） ２，１００

（６．０％） △０．９％

Capital expenditures ９５４ ７９０ ５７０ １，３６０ ４２．６％

Depreciation expenses ６３７ ３９２ ４２２ ８１４ ２７．８％

R&D expenditures １，０１３ ５９０ ４６０ １，０５０ ３．７％

Profit Per Share (yen) ９１．１９ ３２．４７ ５８．４４ ９０．９１ △０．３％

(millions of yen)

23

FY 2014 FY 2015(Plan)

Fiscal (Results)

2Q Second half Fiscal Year on Year

(%)

Orders-received ２９，３９９ １４，６００ １４，９００ ２９，５００ ０．３％

Net sales ２６，９９２ １２，９００ １５，３００ ２８，２００ ４．５％

Operating income

[Profit ratio (%)]

２，１７８

[８．１％] ８５０

［６．６％］ １，４５０

［９．５％］ ２，３００

［８．２％］ ５．６％

(millions of yen)

24

Equipment Business

Service Business

FY 2014 FY 2015(Plan)

Fiscal

(Results) 2Q Second half

Fiscal

Year on Year

(%)

Orders-received ５，５８９ ２，９００ ３，１００ ６，０００ ７．４％

Net sales ５，５４１ ２，７００ ３，１００ ５，８００ ４．７％

Operating income

[Profit ratio (%)]

４３０

[７．８％]

２００ ［７．４％］

３００ ［９．７％］

５００ ［８．６％］

１６．１％

(millions of yen)

25

Other Business

FY 2014 FY 2015(Plan)

Fiscal

(Results) 2Q Second half

Fiscal

Year on Year

(%)

Orders-received １，５２７ ６００ ６００ １，２００ △２１．４％

Net sales １，３５０ ５００ ７００ １，２００ △１１．１％

Operating income

[Profit ratio (%)]

３４

[２．５％]

△ ４０ ［△８．０％］

５０ ［７．１％］

１０ ［０．８％］

△７０．９％

(millions of yen)

26

15

20

2628

18

9777

50

10

20

30

FY2011 FY2012 FY2013 FY2014 FY2015

Full year 2Q

Dividend per share

（yen）

Dividend policy

Recognizing that passing on profits to our shareholders is a key priority and that raising corporate value on a lasting basis is fundamental to raising shareholder value, dividends are decided taking into account sustainability and the dividend payout ratio.

1,929

1,219

1,570

2,118 2,100

419 348465

605 651

0

1,000

2,000

3,000

FY2011 FY2012 FY2013 FY2014 FY2015

Net income

Total cash dividend

（millions of yen）

Net income and total cash dividend

( 21.9%) (28.6%) (29.6%) (28.5%) (30.8%)

(forecast)

(forecast)

(plan)

8

19

13 13

19

Dividends

27

*Consolidated dividend payout ratio in parentheses.

28

Priority Strategies for the Fiscal Ending March 31, 2016

Priority Strategies for the Fiscal Ending March 31, 2016

Investment of management resource

Strengthen Group alliances to increase sales in overseas markets centered on China

and ASEAN countries

Priority Strategy１

Expand business domains targeting growing and

strategic markets

Priority Strategy２

Provide comprehensive technological services that are useful in increasing the efficiency of the testing business, and develop new products to take the

lead domestically

Priority Strategy３

29

１－１. Increase sales in overseas markets

★Further cultivate the ASEAN market

by strengthening the technological

support of the new Thai company

ASEAN countries

★At the new Thai company

Preparing to start commissioned

testing services in fiscal 2016

ESPEC CORP.

ESPEC SOUTH EAST ASIA（Sales）

★

30

★

★Open a sales base (Turkey)

１－２. Global Support

31

ASEAN technical center （Thailand）

Global Support Desk

ASEAN Europe

India Mexico

ASEAN Support Desk

Offer Japanese-language technical support for Japanese customers

2013～

2015～

１－３. Expand sales in overseas markets

ESPEC CORP.

★Strengthen production capacity and

expand sales of ESPEC TEST

EQUIPMENT (GUANGDONG) CO., LTD

★Expand sales by rebuilding sales system

(Acquire 100% ownership of SHANGHAI

ESPEC ENVIRONMENTAL EQUIPMENT

CORP.)

China

★

32

ESPEC ENVIRONMENTAL EQUIPMENT (SHANGHAI) CO., LTD.（Sales）

SHANGHAI ESPEC ENVIRONMENTAL EQUIPMENT CORP.（Manufacturing）

ESPEC TEST EQUIPMENT (GUANGDONG) CO.,LTD (Manufacturing）

２－１. Expand business domains in growth strategy markets

＜Existing Business＞

Mainly electronics or automotive

Aerospace

Biomedicine (training rooms,

etc.)

Equipment for pharmaceuticals, cosmetics and food

Medical equipment

Energy device equipment

Materials

33

Enviro

nm

enta

l cre

atio

n te

chnolo

gy

Market：secondary batteries, power

semiconductors, fuel cells, Solar battery

Energy Device Equipment

・Expand the lineup of secondary battery

evaluation equipment

・Enhance commissioned test services

・Expand commission testing services and

verification services at ESPEC's Energy

Device Environmental Test Center

ＮＥＷ ＮＥＷ

secondary battery evaluation equipment

LIB safety evaluation system

２－２. Expand business domains in growth strategy markets

34

２－３. Business alliance with TÜV SÜD Japan

35

Secondary batteries for eco cars at ESPEC’s Energy Device Environmental Test Center

One-stop provision of testing and verification services compliant with UN-agreed regulations

Contract date: October 10, 2014

Start full-fledged operation : October 2015

Signing ceremony Energy Device Environmental Test Center

・Expand sales of stability test chambers and walk-in

stability test chambers used for pharmaceuticals

・Expand sales of low-temperature (&humidity)

chambers suitable for preservation testing of foods

２－４. Expand business domains in growth strategy markets

ＮＥＷ

Low Temperature(&Humidity)Chamber

ＮＥＷ

36

Food and Drug markets

Market：Pharmaceuticals, Cosmetics, Foods,

medical equipment

Walk-in Stability Test Chamber

２－５. Expand business domains in growth strategy markets

Aerospace related

・Expand sales of customized products

・Bolster commissioned testing services

Replicating the changes in pressure, vibration and temperature

Temperature(Humidity)&Vibration Combined Environmental Test Chamber

Replicating the changes in pressure, vibration and temperature to control pressure

37

３. Win to survive in the domestic environmental testing business

Work on initiatives with other companies to expand the scope of support

for customized products

Responding to customization needs

Enhance customer value

・Strengthen competitiveness through original products and services

・Provide maintenance contracts, inspection, calibration & other general

technological services

38

39

40

These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, forecasts, and performance are subject to change depending on future conditions and various other factors.

INQUIRIES:

ESPEC CORP.

3-5-6, Tenjinbashi, Kita-ku, Osaka 530-8550, Japan

E-mail: ir-div@espec.jp

Jyunko Nishitani

General Manager

Corporate Communication Department

Natsuko Okawa

Corporate Communication Department

41

Reference

History of Environmental Test

Test to analyze and evaluate effects of environmental factors such as temperature, humidity,

pressure, and light on various industrial products like electronic components in order to

ensure product quality.

What is Environmental Test

<Today> Demand has been growing in new energy sectors such as secondary batteries and solar batteries.

<1970s–1990s> “Reliability” and “quality control” became important issues in product development. Demand increased dramatically due to a rapid shift toward computerization and the use of electronic components.

<1950s> The environmental test was JIS-standardized in Japan for consumer products.

1961 Japan's First Environmental Test Chamber

To Domestic Market Share No.1

【 Low temperature & humidity

chamber "Lucifer" 】

【 Temperature & humidity chamber

"Platinous J series"

】 42

ESPEC60%

Others40%

Transition in Business Expanding business based on the “environmental creation technology” refined during the course of developing environmental test chambers

Integrated circuit

1965 1975 1985 1995 2005 2015

surface mount

package

large scale integration

ＬＣＤ

Plug-in Hybrid Electric Vehicle

storage of electricity generation of electricity

43

Busin

ess

expansio

n

1986 Launching the FPD Equipment business

1994 Launching the evaluation system business

2011 Launching the energy device equipment business

1982 Launching the semiconductor equipment business

[Equipment Business] Usage Case with Environmental Test Chambers

44

45

[Equipment Business] Introduction of New Products

Release Date

Name of product Features

2015/2

Low Temperature(&Humidity) Chamber Preservation testing of foods Long-term refrigerated storage testing of pharmaceuticals and cosmetics

2014/11 Thermal Shock Chamber TSA series Build in state-of-the-art controllers to improve operability

2014/11 Advanced Safety Tester Conduct three types of safety testing of rechargeable batteries on one platform

2014/11 Advanced Battery Chamber Next

Constant-temperature bath that can control the temperature of the charge-discharge testing of rechargeable batteries with even higher precision

2014/7 Constant Climate Cabinet ・100 V/15 A usable

2014/7 Compact Ultra Low Temperature Chamber ・Precise control from -85℃ to 180℃

2014/5 Stability Test Chamber／ Walk-in Stability Test Chamber

・Total lineup of 9 models ・Complies with international standards

2013/11 Bench-Top Type Temperature (& Humidity) Chamber

・ Ease of system configuration ・ Enhanced network-based functions

2012/12 Advanced Battery Tester Enhance the product lineup

・Charge-discharge evaluation systems for Secondary batteries ・ Increasing test processing volume and test current

[Equipment Business] TOPICS

Bench-top Type Temperature (and Humidity) Chamber wins 2014 Good Design Award

The Bench-top Type Temperature (and Humidity)

Chamber has followed on from the Platinous J series of

temperature and humidity chambers and won a Good

Design Award.

Design features rated highly were incorporating the

features in a compact body, thereby making the

environmental testing chamber accessible to the

researchers or engineers who use it, and the sense

unified design between the main device and numerous

optional extras.

46

[Equipment Business] Usage Case with Energy Device Equipment

Equipment for ensuring the reliability and safety of lithium-ion secondary

batteries for next-generation vehicles (e.g., hybrid and electric vehicles)

Charge-discharge Cycle Evaluation Equipment

Charge-discharge Cycle Evaluation Equipment Evaluating the performance and life of secondary batteries

Charge-discharge cycle load

Secondary Batteries

Checking the charge-discharge characteristics of secondary batteries

47

[Equipment Business] Usage Case with Semiconductor Equipment

Burn-in chamber

×

Heat load

Elimination of latent early failures

× Semiconductors

Eliminate defective products to maintain initial-period quality at the final

inspection stage of semiconductor device manufacturing

Screening

×

× ×

Conductor resistance evaluation system

Electrical evaluation of reliability of joints in electronic parts

Used to evaluate basic failure patterns to ensure reliability in the development

of new technologies

Reliability Evaluation

Heat cycle load

Example of defect in soldered joint

48

Crack in solder

PCB

[Equipment Business] Usage Case with FPD Equipment

49

Completion

CF substrate

TFT substrate

Pro

tectio

n film

fo

rmatio

n p

rocess

R,G

,B P

rocess

BM

Pro

cess

TFT p

rocess

Exp

osu

re a

nd

Deve

lopm

ent p

rocess

Resist sp

reading

pro

cess

Cle

anin

g p

rocess

Orie

nta

tion film

baking

pro

cess

Asse

mbly P

rocess

Module

Pro

cess

Seal stiffe

ning

pro

cess

Source Glass Lamination

Source Glass

【 Color Filter Process 】

【 Array Process 】

【Cell Process】

Tra

nspare

nt ele

ctro

de

form

atio

n p

rocess

【Single Loading Plate Processing System Vertical Clean Oven】

Dryin

g

Pre

bake

Pre

bake

Anneal

Pre

bake /

Post b

ake

Pre

bake /

Post b

ake

Bake

Dryin

g/Anneal

[Service Business] After–sales Service and Engineering

Commissioned Tests and Facility Rentals

Preventive maintenance of products, maintenance service, and the upgrading/improvement and

installation/relocation of products

■ Speedy response via one of the most extensive networks in Japan

■ Launching new services by utilizing the network function mounted in the equipment

■ Extending support through a full-fledged global framework, with distributors located in many countries

Commissioning of testing, analysis, and evaluation; consulting; equipment rental; sales of used products; calibration of test equipment, etc.

■ Meeting new test needs whenever they arise

・Newly built the industry-first Energy Device Environmental

Test Center （Exclusively for secondary batteries, power

semiconductors, and solar batteries）

・October 2014: Independent German test verification agency

Business alliance with TÜV SÜD Japan to test the safety

and verify services of secondary batteries used in cars

■ The company has four commissioned test centers in Japan

(Utsunomiya, Toyota, Kariya and Kobe).

・These centers are IECQ-approved independent testing laboratories that meet ISO/IEC17025 standards.

・The centers are also recognized as official calibration facilities under the Japan Calibration Service

System (JCSS).

【Energy Device Environmental Test Center】

50

[Service Business] TOPICS

Start the industry-first "5-year Product Guarantee"

51

Temperature & Humidity Chamber

Platinous J Series

Bench-Top Type

Temperature(&Humidity)Chamber

Thermal Shock Chamber

TSA Series

In January 2015, ESPEC started a free 5-year product

guarantee service based on the two key concepts of

“making connections” and “reliability” to build even

stronger relationships of trust with our customers

●Applicable products

[Service Business] TOPICS

The Energy Device Environmental Test Center was established with the latest “first-in-the-world”

equipment developed in-house.

In November 2013, the test center was established at the Utsunomiya Test Center.

This commissioned test center specializes in reliability and safety testing of energy devices.

(energy devices: secondary batteries, power semiconductors, and solar batteries)

External short-circuit testing equipment Capable of handling up to 24 kA current

(the first in the world)

Nail penetration/crush testing equipment Capable of handling cells and battery packs

<Examples of equipment introduced>

52

[Other Business] Environmental Engineering Business

１

■Urban greening

Provision of roof and wall greening systems that use moss to effectively alleviate heat island effect.

■Waterfront biotope restoration

Reconstruction of natural environment, development of vegetative revetments, and water quality improvement using aquatic plants.

Environmental Engineering Business

■Reforestation (Tree planting)

Recovery of local forest by selecting species and planting out seedlings using potential natural vegetation data.

１

Container plant factory

Plant factory

Provision of various cultivation environments employing advanced environmental control technologies to control light, temperature, humidity, carbon dioxide, etc.

Phyto-toron

53

[Other Business] TOPICS

The plant growth facility (100% artificial lighting type) was delivered by ESPEC MIC CORP. in collaboration with other manufacturers. Production of vegetables started to revitalize agriculture and create jobs in the disaster-stricken area.

Toward the reconstruction of areas affected by the earthquake,

Kawauchi Highlands Agricultural Plant Growth Facility started operation

in Kawauchi Village, Fukushima Prefecture.

54

55

Achievement and Financial Data

15,101 16,303 16,137 15,551 17,418

30,924 31,692 30,412 31,760 36,287

0

10,000

20,000

30,000

40,000

50,000

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

2Q Full year

56

Trends in Orders Received

(million yen)

Trends in Sales

12,916 14,306 14,290 14,039 14,196

29,589 31,906 30,799 32,099

33,661

0

10,000

20,000

30,000

40,000

50,000

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

2Q Full year

57

(million yen)

550 569

850680

837

1,391

1,828 1,8662,077

2,643

4.75.7

6.1 6.5

7.9

0.0

4.0

8.0

12.0

16.0

0

1,000

2,000

3,000

4,000

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

2Q

Full year

Operating income to sales (full year)

（％）

58

(million yen)

Trends in Operating Income (loss) and Operating Income to Sales

680 636

876 811953

1,683

2,076 2,1622,370

3,044

5.76.5

7.0 7.4

9.0

0.0

4.0

8.0

12.0

16.0

20.0

0

1,000

2,000

3,000

4,000

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

2Q

Full year

Ordinary Income to sales (full year)

（％）

59

(million yen)

Trends in Ordinary Income (loss) and Ordinary Income to Sales

776

521618

503 590

1,654

1,929

1,219

1,570

2,118

5.66.0

4.04.9

6.3

0.0

4.0

8.0

12.0

16.0

0

500

1,000

1,500

2,000

2,500

3,000

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

2Q

Full year

Net Income Ratio (full year)

（％）

60

(million yen)

Trends in Net Income (loss) and Net Income Ratio

6 ,287 5 ,703 7 ,490

5 ,839

6 ,879 6 ,513 6 ,687

5 ,471 6 ,295 6 ,680 6 ,279

4 ,796

6 ,305 6 ,377 6 ,404 6 ,185

6 ,421

7 ,583

7 ,153

8 ,241

1 ,397 1 ,313

1 ,235

1 ,373

1 ,358 1 ,341 1 ,323

1 ,298

1 ,293 1 ,332

1 ,280

1 ,264

1 ,238 1 ,255 1 ,476 1 ,319 1 ,470

1 ,390 1 ,276

1 ,452

213

250

402

304

175 98

341

339 258

353 400

311

251 213 371

540 446

232 260

588

7,871

7,229

8,490

7,396

8,376

7,927

8,320

7,068

7,808 8,329

7,928

6,347

7,757 7,794

8,206

8,003

8,269 9,149

8,637

10,231

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

FY 2011 FY 2013 FY 2010 FY 2012 FY 2014

61

(million yen)

Trends in Orders by Quarter (Segment)

Other Business Service Business Equipment Business

3 ,767

6 ,509 5 ,885

8 ,725

5 ,123 6 ,462 6 ,008

8 ,295

4 ,954 6 ,465

5 ,473

7 ,476

4 ,167

7 ,153

5 ,540

8 ,971

4 ,270

6 ,896

5 ,801

10,023 1 ,039

1 ,283

1 ,178

1 ,527

1 ,060

1 ,426 1 ,199

1 ,614

1 ,133

1 ,312

1 ,228

1 ,528

1 ,036

1 ,270

1 ,197

1 ,665

1 ,177

1 ,417

1 ,274

1 ,672

166

214

188

588

162

128

181

374

140

351

171

702

261

235

190

581

158

395

253

544

4,942

7,974

6,560

10,113

6,317

7,989 7,356

10,244

6,201

8,089

6,837

9,672

5,434

8,605

6,895

11,165

5,573

8,623

7,287

12,177

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

FY 2011 FY 2013 FY 2010 FY 2012 FY 2014

62

Other Business Service Business Equipment Business

(million yen)

Trends in Sales by Quarter (Segment)

0.750.780.790.830.81

0.0

0.3

0.6

0.9

1.2

1.5

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

（％）

（％）

6 .1

6 .9

4 .15 .0

6 .3

4 .6

5 .4

5 .5 5 .7

6 .8

0.0

2.0

4.0

6.0

8.0

10.0

FY2010 FY2011 FY2012 FY2013 FY2014

ROE ROA

（％）

63

Trends of financial ratios

Return on equity Return on assets Total assets turnover

Liquidity ratio/Current ratio

Quick assets to current liabilities ratio

Fixed assets ratio

Shareholders’ equity ratio

（Times）

Trends of investment index

28.5

21.4

21.9

28.6 29.6

0

20

40

60

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

9.90 9.43

11.85

13.43 13.18

0.62

0.79

0.540.59 0.57

0

5

10

15

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

0.0

0.5

1.0

1.5PER PBR

16,25818,050

16,375 18,607 27,957

23,46023,260 23,259 23,259 23,259

22,000

24,000

0

10,000

20,000

30,000

40,000

50,000

60,000

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Total market value Number of shares outstanding

（％）

1518

15

20

26

5 57 7 7

0

10

20

30

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Full year2Q

（Yen）

64

Price to earnings ratio Price to book value ratio Cash dividends per share

Dividend payout ratio

Total market value

Number of shares outstanding

（Times）

(million yen)

(Thousands

of share)

421

654

794

1 ,115

954

114

343520

276

548

0

500

1,000

1,500

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Full year ２Q

703 740

486 562

637

371 347

238 267301

0

200

400

600

800

1,000

1,200

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Full year ２Q

1 ,092

1 ,358 1 ,143

951 1 ,013

519

713

485 487585

0

500

1,000

1,500

2,000

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Full year 2Q

65

Trends of investment

Capital expenditures Depreciation expenses

R&D expenditures

(million yen) (million yen)

(million yen)