May 16, 2022
Name of company: Nippon Light Metal Holdings Company, Ltd.
Name of representative: Ichiro Okamoto, President & Chief Executive Officer
Stock Code: 5703 Listing: Tokyo Stock Exchange (Prime Market)
Contact: Chizu Ishikawa, Public Relations and Investor Relations
Central Planning Office(TEL: +81-3-6810-7160)
Establishment of Medium-term Management Plan (Fiscal 2022-2024)

Nippon Light Metal Holdings Company, Ltd. (President & Chief Executive Officer: Ichiro Okamoto;
headquarters: Minato-ku, Tokyo; hereinafter, “the Company”) has established the Nippon Light Metals Group’s
2022 Medium-term Management Plan (hereinafter, “2022 Medium-term Plan”), a three-year plan starting inApril 2022.
1. Summary of 2019 Medium-term Management Plan
In its three-year medium-term plan that began in April 2019 (hereinafter, “2019 Medium-term Plan”), theGroup steadily implemented measures based on its three basic policies—“create new products andbusinesses,” “invest resources for growth,” and “strengthen management foundation”—and endeavored toachieve the targets.
The targets in the 2019 Medium-term Plan were not achieved, largely because of the substantial impact of thesharp rise in raw material prices and other changes in the external environment, in addition to economic
stagnation due to the US-China trade dispute and the spread of COVID-19 as well as a decrease in auto
production attributable to a shortage of parts, particularly semiconductors. However, the Group was able togenerate a certain amount of revenue and profit even in this harsh business environment.
(Unit: 100 million yen)
Year ended in
March 2020
(Actual)Year ended in
March 2021
(Actual)Year ended in
March 2022
(Actual)5,005Year ended
March 2022
(Targets in 2019Medium-termPlan)
5,400

4,659

4,326

4,866

Operating profit

301375

246

242

222

Ordinary profit

311370

235

240

229

Net income

206

240

75

34168

ROCE (%)*

10.8

11.4

8.0

8.4

8.7

Year ended
March 2019(Actual)
Net sales*ROCE (return on capital employed):
Ordinary profit before interest / capital employed (Shareholders’ equity + interest-bearing debt –cash and deposits)1

In terms of the sediment measures at Amehata Dam to address the flood damage in the areas around Amehata
Dam that occurred during the 2019 Medium-term Plan’s duration, the emergency measures (construction ofan embankment) and short-term plan (dirt removal plan for fiscal 2020-2021) are generally being carried out
in line with the plans. Reserves for future sediment measure costs were posted during the 2019 Medium-term
Plan. During the 2022 Medium-term Plan as well, the Group will steadily implement sedimentcountermeasures in cooperation with the related organizations, with the safety of local residents as our mainpriority.
In addition, we take very seriously the series of incidents related to the notice of the revocation of JIScertification at some of the Group’s business sites. We have established measures to prevent any reoccurrencewith the awareness that this is a serious issue for the Group.
2. Overview of Nippon Light Metal Group’s 2022 Medium-term Management Plan
Before devising the 2022 Medium-term Management Plan, the Company revised the Nippon Light Metal
Group’s management policies as guidelines for long-term initiatives, and while carrying on the spirit that has
been the foundation of our management policies thus far, the Company defined its management philosophyand basic policies anew in light of the Group’s material issues and initiatives addressing these issues associety and customers’ needs diversify in a changing social environment.
Given this, the Company established the following basic policies as the guidelines for medium-term
initiatives in the 2022 Medium-term Management Plan, with the awareness that raising the Group’s corporate
value by balancing the responsibilities of creating the value that customers seek and responding to social
issues such as carbon neutrality is the Group’s most important issue.
We call the guidelines for both of these initiatives the Basic Policies for Sustainability Initiatives, and aim forsustainable growth for the Group.
(1) Basic policies
a. Provide products and businesses that contribute to the creation of social value● Provide products and businesses that satisfy customers’ needs

・In growth areas such as eco-friendly cars and lithium-ion batteries, we will offer products andbusinesses that meet customer needs and expand sales globally, including the start of productionof auto-related parts in the US.
● Provide a range of products and businesses throughout the overall supply chain lifecycle
・In addition to creating and implementing our own aluminum resource cycle utilizing Group
infrastructure, we will provide products and businesses that contribute to the creation of social
value to achieve carbon neutrality by 2050.
● Strengthen the Group collaboration system to solve social issues
・After providing these products and businesses and creating social value, strengthen the Group’scollaboration system further and reallocate management resources, as well as consider utilizing
external resources.

2

b. Strengthen management foundation● Thorough quality compliance (restoring social trust)・The group is working proactively to establish measures to prevent reoccurrence of theinappropriate actions related to JIS certification, including reforming the organizational culture. Inaddition, we will accept the results of the investigation carried out by the Special Investigation
Committee with all humility and strive to restore the trust that has been lost.
● Top priority on safety and thorough compliance・ We will take initiatives aimed at achieving zero-accident operations and measures to raisecompliance awareness.
●Response to carbon neutrality
・In order to achieve carbon neutrality by 2050, we will take initiatives aimed at reducing greenhousegas emissions by 30% compared to 2013 levels by 2030, and also disclose information on the risks
and opportunities that climate change poses for the Group’s business, based on recommendations
from the Task Force on Climate-related Financial Disclosures (TCFD).
● HR expansion, appointments and education to improve sustainable corporate value
・As an HR strategy supporting improvements to sustainable corporate value, we will take initiatives
in hiring, employee assignment, education and other areas, as well as promote diversity andinclusion.
(2) Management indicators
a. Financial indicatorsIn the 2022 Medium-term Plan, the Group will build a profit foundation that will be less susceptible tothe external environment and aim for a corporate structure that can secure profit in the 30-40 billion yen
range on a stable basis.

Operating profit

Year ended March 2022(Actual)

Year ending March2023 (Forecast)

22.2 billion yen

20 billion yen

Final year of 2022 Mediumterm Plan, Year ending March2025 ( Reference)*
Over 30 billion yen*This figure indicates the Company’s approximation at this point, and is not a target that theCompany aims to meet.

3b. Basic policy regarding profit distribution
The Group’s basic policy on profit distribution is that it will return profits to all shareholders,
comprehensively taking into account the maintenance of consolidated earnings and a sound financial
foundation for the medium to long term, while also reinforcing its financial system and managementfoundation. The Group decides on dividend amounts using a total dividend payout ratio, including theacquisition of treasury stock, of 30%, as its indicator for profit returns.
Year ended March 2022

Year ending March 2023

Final year of 2022
Medium-term Plan, Yearending March 2025
InterimYear-end
InterimYear-end
Annualactualplan
forecast
forecast(Reference*)
Dividends
40 yen45 yen40 yen45 yen
100 yen*This figure indicates the Company’s approximation at this point, and is not a target that theCompany aims to meet.
In addition to investments aimed at expanding business in growth areas and creating demand andbuilding up revenue potential in foundation business areas, the Group will invest for the future withinvestments to strengthen its management foundation, develop R&D and HR and achieve carbon
neutrality as it works to improve corporate value. The D/E ratio will remain below 1x going forward.
*Note on forecasts
The Group’s earnings forecasts and other statements concerning the future presented in thesematerials are calculated based on information available at this point and certain assumptions deemed
reasonable. They are not intended as a commitment to achieve these forecasts. Actual earnings
results could differ significantly from forecasts for various reasons, including economic conditions,demand trends, and foreign exchange fluctuations, among other factors.

4