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%-12%, backed by a diversified business portfolio Potentially volatile cash flows, given the highly cyclical nature of some businesses, mainly factory automation, and working capital needs Likely strong free cash flows in fiscal 2024 onward, thanks to a relatively low investment burden and controlled capital spending Prospect of cash and cash equivalents to remain in excess of debt due to conservative financial discipline We consider potential earnings volatility of the company's mainstay factory automation system business to be high. However, we
