Financial results for the first half ofthe fiscal year ending March 31, 2022,
and full-year earnings forecasts

November 16, 2021

Nippon Light Metal Holdings Company, Ltd.

Table of Contents
1. Financial results for the first half of the fiscal year
ending March 31, 2022
2. Forecast of consolidated financial results for the
fiscal year ending March 31, 2022
3. Progress with medium-term management plan2

Financial results for the first half of the fiscal year ending March 31, 2022

Financial results for the first half of the fiscal year
– compared with the same period in the previous year

(Billions of yen)

April–September
2021
Results

April–September
2020
Results

Net sales

236.0

198.5

Operating profit

14.0

7.9

Ordinary profit

14.2

7.7

Profit attributable toowners of parent

10.8

4.7

Dividends per share

40 yen-Change+37.5(+18.9%)+6.1(+77.8%)+6.5(+85.5%)+6.1(+129.1%)

3

Financial results for the first half of the fiscal year ending March 31, 2022

Factors behind changes in ordinary profit– compared with the same period in previous year

+6.5 billion yen

+8.4

-0.1

Sales volume

Sales price

April–September 2020
Results

+1.2

-1.9

April–September 2021
Results(Billions of yen)

-1.1

14.2

Other

Purchased
products

New products

7.7

4

Financial results for the first half of the fiscal year ending March 31, 2022

Segment information – compared with the same period in previous year

(Billions of yen)

Net sales
April–September April–September
2021
2020
Results
Results

Aluminum ingot andchemicals

60.1

38.8

Aluminum sheet andextrusions

58.0

44.9

Fabricated products
and other

74.6

73.6

Aluminum foil,
powder, and paste
Management,
shared

43.3

41.2

-

-

236.0

198.5

Total

Operating profit
Change+21.3

April–September April–September
2021
2020
Results
Results

Change+3.2(+54.7%)

7.5

4.3

+13.1

(+29.3%)

4.7

1.4

+1.0

(+1.4%)

2.1

2.7

+2.1

(+5.1%)

1.4

1.1(+34.9%)

-

-1.7

-1.6

-0.1

+37.5

14.0

7.9

+6.1

(+18.9%)(+73.2%)+3.3(+229.6%)-0.6(-22.1%)+0.3(+77.8%)5

Table of Contents
1. Financial results for the first half of the fiscal year
ending March 31, 2022
2. Forecast of consolidated financial results for the
fiscal year ending March 31, 2022
3. Progress with medium-term management plan6

Consolidated earnings forecasts for the fiscal year ending March 31, 2022

Full-year earnings forecasts – compared with the previous year
(Billions of yen)

Fiscal 2021
Forecasts (Nov. 1)

Fiscal 2020
Results

ChangeNet sales

470.0

432.6

+37.4

Operating profit

27.0

24.2

+2.8

Ordinary profit

27.0

24.0

Profit attributable toowners of parent

18.0

3.4

85 yen (*)

65 yenDividends per share*Interim dividend: 40 yen/share; year-end forecast: 45 yen/share(+8.7%)(+11.6%)+3.0(+12.4%)+14.6(+434.8%)

7

Consolidated earnings forecasts for the fiscal year ending March 31, 2022

Factors behind changes in ordinary profit– compared with the previous year

Fiscal 2020
Results

Fiscal 2021
Forecasts (Nov. 1)+3.0 billion yen
+8.5

+0.8

+1.1

-5.0

(Billions of yen)

-2.4

Other

Purchased
products

New products

Sales priceSales volume

24.0

27.0

8

Consolidated earnings forecasts for the fiscal year ending March 31, 2022

Segment information – compared with the previous year
Net sales
Fiscal 2021
Forecasts (Nov. 1)

Fiscal 2020
Results

Aluminum ingot andchemicals

120.0

91.2

Aluminum sheet andextrusions

107.0

97.9

(Billions of yen)

Operating profit
ChangeFiscal 2021
Forecasts (Nov. 1)

Fiscal 2020
Results

Change

+2.4

+28.8

12.0

9.6

+9.1

(+9.4%)

8.5

6.0

-4.3

(-2.7%)

7.5

8.9

+3.8

3.3

(-9.4%)(+31.6%)(+24.8%)+2.5(+42.9%)-1.4

Fabricated products
and other

153.0

157.3

Aluminum foil,
powder, and paste

90.0

86.2

Management,
shared

(+4.4%)

3.0

-

-

-

-4.0

-3.6

-0.4

470.0

432.6

+37.4

27.0

24.2

+2.8

Total

(+8.7%)(-15.7%)-0.3(+11.6%)

9

Consolidated earnings forecasts for the fiscal year ending March 31, 2022

Aluminum ingot and chemicals
Net sales

Operating profit(Billions of yen)(Billions of yen)

120.0

125.0

17.5
15.0

100.0
75.0

91.2

12.5

12.0
9.6

10.0
7.5

50.0

5.0
25.0
0.0

2.5
Results in
2020

2021
Forecasts(Nov. 1)

Alumina and chemicals
 Aluminum hydroxide: Sales of products for ceramics and fire-resistant materials
remained strong, but we are closely monitoring trends in
raw material prices in the second half.

Nikkei MC Aluminium Market environment: Although demand has continued to recover since thesecond half of 2020 both in Japan and overseas, we areconcerned about the effect of decreased auto production.
 China’s impact:
On the sales side, sales are up in Japan and Thailand
due to a decline in the influx of general-purpose products
made in China, but restrictions on factory utilization due
to power shortages are a risk.
Sales volume for Nikkei MC Aluminium (1,000 tons)
H1 FY21H2 FY210.0

Results
Japan
Overseas
Total

67.5
68.1
135.6

Previous
year

42.9
52.6
95.5

Change

＋57%
＋29%
＋42%

Forecast

71.1
73.2
144.3

Previous
year

69.2
77.3
146.5

Total for FY21
Change

＋3%
-5%
-2%

Forecast

138.6
141.3
279.9

Previous
year

112.1
129.9
242.0

Change

＋24%
＋ 9%
＋16%

10

Consolidated earnings forecasts for the fiscal year ending March 31, 2022

Aluminum sheet and extrusions
Net sales

Operating profit(Billions of yen)(Billions of yen)

100.0

97.9

107.0

12.5
10.0

75.0

50.0

8.5
6.0

5.0

25.0

0.0

7.5

2.5

Results in
2020

2021
Forecasts(Nov. 1)

0.0

Sheet
 Semiconductor-related: Demand for investment in semiconductor and liquid crystal
manufacturing equipment remains high, so sales of thick sheetsremained strong.
 Battery-related:
Sales of parts for lithium-ion batteries were solid.
Sales volume for sheets business (1,000 tons)
H1 FY21H2 FY21

Total for FY21

Results

Previousyear

ChangeForecast

Previousyear

ChangeForecast

Previousyear

Change

35.3

33.4

＋ 6%

39.3

35.5

＋ 11%

74.6

68.9

＋ 8%

Nikkeikin Aluminium Core Technology
 Auto-related:

We are concerned about the impact of lower auto production due tohold-ups along the supply chain resulting from an insufficient supplyof semiconductors and other parts.
 Transportation-related: Demand for products for railways remained solid, and we aremonitoring the decline in production of chassis and parts shortages
since the first half, which could affect demand for products for trucks.

Nikkeikin Aluminium Core Technology’s sales volume (1,000 tons)

H1 FY21H2 FY21

Total for FY21

Results

Previousyear

ChangeForecast

Previousyear

ChangeForecast

Previousyear

Change

18.6

17.1

＋ 9%

18.9

19.2

-2%

37.5

36.3

＋ 3%

11

Consolidated earnings forecasts for the fiscal year ending March 31, 2022

Fabricated products and otherNet sales

Operating profit(Billions of yen)(Billions of yen)

175.0

157.3

153.0

150.0
125.0
100.0

12.5
10.0

8.9
7.5

75.0

7.5
5.0

50.0
2.5

25.0
0.0

Results in
2020

2021
Forecasts(Nov. 1)

0.0

Nippon Fruehauf
 Sales: Sales of completed cars for truck manufacturers continue to decline
due to lower production of chassis.
 Costs: We expect the impact of the sharp rise in the price of materials suchas aluminum to continue in the second half as well.

Nikkei Panel System Refrigerator and freezer sector:
Orders and the start of work for food processing plants anddistribution warehouses has recovered.
 Clean rooms: Orders are on the rise due to stronger demand forsemiconductor factors.
 Costs:
There are concerns that a spike in sheet steel prices willcontinue to have an impact.

Nikkei Engineering Public works: Demand for roads, bridges and structures is strong, but there
are signs of a downturn due to the end of demand related to
the Tokyo Olympics.

12

Consolidated earnings forecasts for the fiscal year ending March 31, 2022

Aluminum foil, powder, and paste
Net sales

Operating profit(Billions of yen)(Billions of yen)

7.0
100.0

86.2

90.0

80.0

5.0
4.0

60.0
40.0

3.3

3.0

20.0
0.0

6.0

3.0
2.0
1.0

Results in
2020

2021
Forecasts(Nov. 1)

0.0

Toyo Aluminium
Aluminum foil business Foil for the outer packaging of lithium-ion batteries:
Demand has remained strong since the first half, particularly for automobiles.
 Pharmaceutical products:
The impact of a decline in office visits at medical institutions is expected tocontinue throughout the year.
Powder and paste business Powder products for electronic materials:
Demand for radiation applications remained solid.
 Products for automobile paint:
Demand was solid in the first half, but we are concerned about the impact of thedecrease in automobile production.
Daily necessities business Products for consumers:
Sales of house-care products are expected to remain strong in the second half aswell.
 Products for packaging:
The impact of higher costs caused by a spike in aluminum and paper prices is
expected to continue.

13

Table of Contents
1. Financial results for the first half of the fiscal year
ending March 31, 2022
2. Forecast of consolidated financial results for the
fiscal year ending march 31, 2022
3. Progress with medium-term management plan

14

Overview of 2019 Medium-term Plan

Basic Policies of Medium-term Management Plan
Team NLM—Groundbreaking Innovator of Aluminum and Beyond<Basic policies>
1. Creation of new products and new business Create new value for all customers by thoroughly pursuing Group-Wide coopertion
 Develop products and businesses,taking advantage of the supply chain with manufacturing at the core

2. Invest resources for growth More vigorously invest resources into fields and regions where the Group’s strengths can be utilized Manage the Group’s organizations agilely and utilize external resources according to businesses

3. Strengthening of management foundation
 Give top priority to safety and ensure compliance and quality
 Enrich human resources to improve corporate value sustainably

15

Progress with 2019 Medium-term Plan

Team NLM achieves high added value from customers’ perspective
NLM , Nikkei MC
Aluminum, andNikkeikin Aluminium CoreTechnology Company:

Used in heat release plates for power control units, the heart of ecofriendly cars
Customer
response
Effective use of
online meetings

Business talkｓ

Strengths of Nikkeikin Group
SecondaryalloysCommonmaterials
Developed
alloysHeat release plates for
eco-friendly automobiles

Search forvalue

Nikkei MC
Aluminum×

Manufacturingmethods

Processing
techniqueDie-casting

Bondingtechnology

Gravity×(FSW)

Inesrt-Casting

Hot forging

Press-intechnology

Nippon Light Metals
Nikkeikin Aluminium
Core Technology
Company

Nippon Light Metal
Nikkeikin Aluminium
Core Technology
CompanyWith the team’s power, integrate value that customers can sense and the Group’s strengths

16

Progress with 2019 Medium-term Plan

Establish a foundation for business growth
India: Food and health
Toyo Aluminium
Foil processing business forpharmaceutical packaging
made a subsidiary

US: Automobiles
Nikkei MC Aluminium
Reinforce capacity of
manufacturing bases in the US

China: Electrical machinery and electronics
Toyo Rikagaku Kenkyusho
Transfer of equity in investment in
Chinese base17

Progress with 2019 Medium-term Plan

Local manufacturing and local consumption possible in a growth region
Toyo Aluminum: Aluminum foil processed products business made a subsidiary in India

Overview• Manufacture and sale of packaging
materials for pharmaceutical products• Established in 1998
• Net sales of 4.7 billion yen (2.74 billion rupiah)
Fiscal year ended on March 31, 2021

OP coat

Lid materials
VC coatTabletContainer materials

Printed layer

Trends• 2018: 33.4% of stocks were acquired and collaboration wasstarted in Indian market• August 2021: An additional 17.6% of stocks was acquired andcompany became a subsidiary
Company overview• Name:Svam Toyal Packaging Industries Private Limited• Location:
New Delhi, Republic of India• Capital:
10 million yen (5.8 million rupiah)• Shareholder: Toyo Aluminum, 51%

18

Progress with 2019 Medium-term Plan

Reinforce capacity to meet growing market demands
Nikkei MC Aluminum: Reinforce production capacity of secondary alloys at US bases

Background• Need to make lighter automobiles
Growing demand for auto body structural material applicationsin the US

Powder and paste
business(Illinois)

Investment overview• Capital investment: 600 million yen• Melting furnace and swarf dryer, other• Operations to begin in fiscal 2021
• Production capacity: 40% augmentation
4,000 tons/month → 5,500 tons/month

Secondary alloy for
automobiles business(Mexico)Secondary alloy for
automobiles business(Indiana)
Marketing base
(Ohio)
Automobile
undercarriage parts(Georgia)

Nikkei MC Aluminum America• Name: NIKKEI MC ALUMINUM AMERICA, INC.
• Location: Indiana, US• Capita: 440 million yen (US$ 4 million)• Shareholders: Nikkei MC Aluminum, 60%; ENKEI Group, 40%

19

Progress with 2019 Medium-term Plan

Processed sheet products: Transfer of equity in investment in Chinese baseToyo Rikagaku
Sold equity in investment in Tokyo Precision Appliance
Kenkyusho Co., Ltd.: (Kunshan) Co., Ltd.
Overview

Location: Kunshan, Jiangsu Province, China
Business: Manufacture of IT-related housing
Investment: US$ 28 million
Number of employees: About 1,000
Equity ratio (before transfer): 100% of shares held by Toyo
Rikagaku Kenkyusho Co., Ltd.

History

December 2006: Established
January 2015: Became a consolidated subsidiary due toan additional investment by Nippon Light Metals
in Toyo Rikagaku Kenkyusho

On the premise that the business will continue, all of the equity in investment will be sold(an agreement on equity transfer was signed in October 2021).

20

Progress with 2019 Medium-term Plan

To achieve a sustainable society
Integrated Report
2021 issued

Providing sustainable value

Happiness of employees

Nikkei MC Aluminium Co., Ltd.

Nippon Light Metal

Initiatives to decarbonize
through a recycling businessAluminum products

Kurumin and Eruboshi
certification earned

Collection and sorting

Recycling routeCO2 emissions
at time ofrecycling:About

10%* When assuming 100%at the time of
manufacturing newaluminum ingot

QR code for Integrated Report 2021

Aluminum secondary
alloy ingots

Melting and casting

Reduction in CO2 emissions due to recycling

21

Inappropriate actions regarding quality that occurred in Group
Date

Chronology of events

May 14, 2021
June 9, 2021

JIS certification was revoked for Nippon Light Metals’
Nagoya Plant
Special investigation committee was established

July 2, 2021

JIS certification was revoked for Nikkei Niigata Co., Ltd.

Request for temporary suspension of use of JIS markJune 30, 2021, at the Okayama Plant of Nikkei Extrusions
August 20, 2021, at Nikkei Kambara

In order to restore the trust of shareholders, investors and customers, we will
make improvements so that the Group’s governance, management systems
and compliance function well.

22

チーム日軽金として、異次元の素材メーカーへ

Team NLM – Groundbreaking Innovator of Aluminum and Beyond

Notes on this document
１．This document is intended to provide information on the financial results for the fiscal year ending March 31,
2022, and future management strategies, and not to solicit the purchase or sale of the marketable securities
issued by the Company.
２. The forward-looking statements, including future trends and earnings estimates, are not historical facts andinvolve risks and uncertainties, and therefore do not guarantee future performance. Actual financial results
may differ materially from the estimates due to various factors, including unpredictable changes in economic
conditions. Significant factors that may affect actual financial results include but are not limited to theeconomic climate surrounding the Group, social trends, and changes in the Group’s relativecompetitiveness in line with the demand trends for the products and services provided by the Group.
３． The matters described in this document reflect the views of the Company at the time of its preparation andare subject to change without prior notice.
４． The Company shall assume no responsibility for any damage resulting from the use of this document.

Supplemental materials

Financial results for first half of fiscal year ending on March 31, 2022

Trends in overall demand for aluminum products in Japan(tons)
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,0000

4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 9
Fiscal 2019
Fiscal 2020
Fiscal 2021
Source: Japan Aluminium Association

26

Elements and sensitivity
Fiscal 2020
Results

Aluminum
ingot

243

AprilSeptember
2021
Results

Sensitivity to ordinary
profit340

Assuming a 10 yen/kg
increase-0.5 billion yen/year

110

Assuming 10 yen
appreciation-0.5 billion yen/year

69

Assuming a USD10/BBL
increase-0.6 billion yen/year(yen/kg)

Exchange
rates

106

(JPY/USD)

Dubai crude(USD/BBL)

45

27

Financial results for first half of fiscal year ending on March 31, 2022

Ordinary profit(Billions of yen)

AprilSeptember
2021
Results

Ordinary
profit14.2

AprilAprilSeptember Compared
to forecast
September2021
Y-o-Y change
2020
Forecast at at start ofResults
start of fiscal fiscal year
year

7.7

+6.5

12.0

+2.2

Breakdown of 6.5 billion yen y-o-y increase
Operating profit+6.1
Foreign exchange gain or loss
+0.3
Other
+0.1

28

Financial results for first half of fiscal year ending on March 31, 2022

Profit attributable to owners of parent
AprilSeptember
2021
Results
Profit attributable toowners of parent

10.8(Billions of yen)

AprilAprilSeptember Compared to
September
2021
forecast at
Y-o-Y change
2020
Forecast at start of fiscal
Results
start of fiscal
year
year

4.7

Breakdown of 6.1 billion yen Y-o-Y increase
Ordinary profit
Extraordinary profit
Tax costs
Profit attributable to non-controlling interests

+6.1
+6.5
+1.5
-1.6
-0.3

12.0

-1.2

29

Financial results for first half of fiscal year ending on March 31, 2022

Financial results of key companies – Y-o-Y change(Billions of yen)

April-September 2021 results

April-September 2020 results

Net sales

OperatingprofitOrdinary
profitNet sales

OperatingprofitOrdinary
profit

64.9

4.4

7.6

53.4

1.6

5.5

43.5

1.4

1.8

41.4

1.1

1.1

Nikkei MC Aluminium(Consolidated)

38.0

1.7

1.8

17.6

-0.2

-0.3

Nippon Fruehauf(Consolidated)

32.4

0.2

0.2

32.8

0.8

0.7

Nikkeikin Aluminium CoreTechnology (Consolidated)

27.0

1.9

2.0

18.1

0.2

0.3

Nippon Light Metal(Parent)
Toyo Aluminium(Consolidated)30

Consolidated earnings forecasts for fiscal year ending March 31,2022

Financial results of key companies – QoQ change(Billions of yen)

Fiscal 2021 Forecasts (Nov .1)

Fiscal 2020 Results

Net sales

OperatingprofitOrdinary
profitNet sales

OperatingprofitOrdinary
profitNippon Light Metal(Parent)

135.4

6.5

9.6

112.4

3.4

7.3

Toyo Aluminium(Consolidated)

90.0

3.1

3.6

86.7

3.3

3.7

Nikkei MC Aluminium(Consolidated)

75.8

3.1

3.4

49.8

1.8

2.0

Nippon Fruehauf(Consolidated)
Nikkeikin Aluminium CoreTechnology(Consolidated)

65.0

0.1

0

68.5

2.3

2.3

54.1

2.6

2.8

40.5

1.8

1.8

31

Financial results for the first half of the fiscal year ending March 31, 2022

Capital investment and Depreciation– Y-o-Y change(Billions of yen)

Capital investment

Aluminum ingot andchemicals
Aluminum sheet andextrusions
Fabricated products
and other
Aluminum foil, powder,
and paste
Total

Depreciation

AprilAprilAprilAprilSeptember September
September September
Difference
Difference
2021
2020
2021
2020
Results
Results
Results
Results

1.5

1.9

-0.4

2.1

2.0

+0.1

4.5

3.5

+1.0

3.0

2.8

+0.2

2.3

3.7

-1.4

2.6

2.4

+0.2

2.5

2.1

+0.4

2.1

2.1

±0

10.8

11.2

-0.4

9.8

9.3

+0.5
32

Consolidated earnings forecasts for ｆiscal year ending March 31,2022

Capital investment and Depreciation– Q-o-Q change(Billions of yen)
Capital investment

Aluminum ingot andchemicals
Aluminum sheet andextrusions
Fabricated products
and other
Aluminum foil, powder,
and paste
Total

Depreciation

Fiscal 2021
Fiscal 2021
Fiscal 2020
Fiscal 2020
Forecasts
Difference Forecasts
Difference
Results
Results(Nov.1)(Nov.1)

10.1

6.6

+3.5

4.5

4.0

+0.5

8.9

7.9

+1.0

5.6

5.7

-0.1

6.6

6.4

+0.2

5.2

5.0

+0.2

5.0

5.0

±0

4.4

4.5

-0.1

30.6

25.9

+4.7

19.7

19.2

+0.5
33

Progress with 2019 Medium-term Plan

Capital investment(Billions of yen)
100
80

86.4
70.9

60

Sales promotion,
new products
Energyconservation,
safety, other40

Maintenanceand updates

200Over 80.0

FY2016-2018
Results

FY2019-2021
Forecasts

FY2019-2021
Medium-term Plan

34

Consolidated earnings forecasts for ｆiscal year ending March 31,2022

Dividends per share

On October 1, 2022,the Company implemented a share consolidation in which ten shares of common stock were consolidated
into one share, the result for FY20 and the forecast for FY21 show the amounts taking into account the impact of this shareconsolidation.

10
9
8
7
6
5
4
3
2
1
0

Year-end

8.0

Interim
Annual
5.0
3.0
3.0

6.0

4.0
4.0

5.0

5.0

8.0
4.0

9.0

5.0

9.0

5.0

85
65

45

65

6.0
3.0

4.0

4.0

4.0

40

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Forecast

100
90
80
70
60
50
40
30
20
10
0

35

Overview of 2019 Medium-term Plan

Shareholder returns[Basic Policy for Profit Distribution]

The Company pays dividends to all shareholders by taking into account consolidated
earnings and other factors from medium- and long-term perspectives in a comprehensive
manner, while also working to reinforce its financial standing and management base.

[Indicator for profit distribution: from 2019 Medium-term Plan]

Total payout ratio of 30% as standard• Steadily provide shareholder returns• Plan proactive investments to achieve sustainable growth• Select a dividend level (and method for returning profits to shareholders) by taking into
account the Company’s cash position, shareholders’ equity and other factors in acomprehensive manner.

36

Progress with 2019 Medium-term Plan

The Five Material Issue Themes

37