Overview Key strengths Key risks Strong global competitiveness in areas including factory automation systems, social infrastructure, and power semiconductors Slightly lower profitability than major overseas competitors in the capital goods industry Slightly low but relatively stable EBITDA margin of 9%-11%, backed by a diversified business portfolio Potentially volatile profit in its mainstay factory automation business, affecting consolidated figures Likely strong free cash flows from fiscal 2023, thanks to a relatively low investment burden and controlled capital spending Potentially volatile cash flows, given the highly cyclical nature of some businesses and working capital needs Maintain cash and cash equivalents exceeding debt thanks to conservative financial discipline The performance of the mainstay factory automation (FA) system business is likely to be weak
