Consolidated Financial Results
For the Fiscal Year Ended March 31, 2023
(Japan GAAP)May 15, 2023

Name of listed company:

Nippon Light Metal Holdings Company, Ltd.

Stock exchange listing:Tokyo Stock Exchange

Code number:

5703

URL:

https://www.nikkeikinholdings.com/

Representative:

Ichiro OKAMOTO,

Contact:

Chizu ISHIKAWA,

Phone:+81-03-6810-7160

President & Chief Executive Officer
Public Relations and IR Director, Planning &Supervision Office

Scheduled date of Ordinary General Meeting of Shareholders:June 27, 2023

Scheduled date of commencement of dividend payment:

June 28, 2023

Scheduled date of filing securities report:

June 27, 2023

Preparation of supplementary materials for financial results:

Yes

Holding of a briefing on financial results:

Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022－March 31, 2023)(1) Consolidated Operating Results(% figures show year-on-year change)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions ofMillions ofMillions ofMillions of
Fiscal year ended
%
%
%
%
yen
yen
yen
yen
March 31, 2023
516,9546.2
7,539 (66.0)
8,859 (61.4)
7,203(57.0)March 31, 2022

486,579

12.5

22,198(8.2)

22,928(4.6)

16,759397.9(Note) Comprehensive income: Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

¥6,672 million / (66.8%)¥20,074 million / 105.3%

Net profit per
share (basic)

Net profit per
share (diluted)

Return on
equity (ROE)

Ordinary profit
to total assets

Operating profit
to net sales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2023

116.33

－

3.5

1.7

1.5

March 31, 2022

270.77

－

8.5

4.4

4.6

(Reference) Share of loss (profit) of entities accounted for using equity method:
Fiscal year ended March 31, 2023:¥1,989 million
Fiscal year ended March 31, 2022:¥1,663 million1(2) Consolidated Financial Position
Total assets

Net assets

As of March 31, 2023

Millions of yen
526,201

Millions of yen
220,758

%
39.0

Yen
3,318.17

As of March 31, 2022

532,601

220,90738.1

3,281.17(Reference)
Shareholders’ equity:

Equity ratio

As of March 31, 2023:
As of March 31, 2022:

Net assets per share¥205,475 million¥203,089 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end ofyear

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2023

695

(15,123)85

31,263

March 31, 2022

1,487

(18,021)(626)

45,145

2. Dividends

Annual dividends per share

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(forecast)

Ratio of
Payoutdividends toratio
net assets(consolidated) (consolidated)

Total
dividends(annual)End offirstquarter

End ofsecondquarter

End ofthird
quarterYearend

Total

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

―

40.00

―

45.00

85.00

5,263

31.4

2.7

―

40.00

―

10.00

50.00

3,096

43.0

1.5

―

10.00

―

40.00

50.00

41.3

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(April 1, 2023–March 31, 2024)(% figures show year-on-year change)
Profit attributableNet
Net sales
Operating profit
Ordinary profit
to owners of
profit per
parentshare
Six months ending
September 30, 2023
Fiscal year ending
March 31, 2024

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

250,000

(1.2)

2,500

(31.6)

2,500(52.0)

1,000(73.7)

16.15

550,000

6.4

17,000125.5

16,000

80.6

7,500

4.1

121.132

*Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries affecting the scope of consolidation): None
Newly added: ― (Company name: ― )Excluded: ― (Company name: ― )(2) Changes in accounting policies, changes in accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards: Yes(ii) Changes in accounting policies other than item (i) above: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of shares outstanding (common stock)(i) Number of shares outstanding at end of period (including treasury stock)
As of March 31, 2023
61,993,750 shares
As of March 31, 2022
61,993,750 shares(ii) Number of treasury stock at end of period
As of March 31, 2023
69,643 shares
As of March 31, 2022
98,476 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023
61,917,662 sharesFiscal year ended March 31, 2022
61,894,906 shares* The consolidated financial results are not subject to auditing by a certified public accountant or an audit firm.
* Explanations concerning the appropriate use of financial forecasts and other special notes(Note of caution concerning forward-looking statements)• The forward-looking statements such as result forecasts included in this document are based on the information
available to the Company at the time of the announcement and on certain assumptions considered reasonable, andthe Company makes no representations as to their achievability. Actual results may differ materially from theforecast depending on a range of factors. For the conditions on which the financial forecasts are based and notes ofcaution concerning forward-looking statements, etc., please refer to “1. Overview of operating results (1) Overview
of operating results in fiscal year under review” on p. 1 of the attached documents.

3

Page

[Attached documents]
Index
1.

Overview of operating results ...........................................................................................................................5(1) Overview of operating results in fiscal year under review..............................................................................5(2) Overview of financial position in current fiscal year .....................................................................................9(3) Basic policy regarding profit distribution and dividends for the fiscal year ended March 31, 2023 andfiscal year ending March 31, 2024 ...................................................................................................................10
Management policies .......................................................................................................................................112.

(1)Company’s basic policy on management .........................................................................................................11(2)Company’s medium- and long-term management strategy ..............................................................................11(3)Management indicators .....................................................................................................................................14
3.

Basic approach to selection of accounting standards .......................................................................................15

4.

Consolidated Financial Statements and Important Notes ................................................................................16(1)Consolidated balance sheets ............................................................................................................................16(2)Consolidated statements of income and consolidated statements of comprehensive income..........................18(3)Consolidated statement of changes in shareholders' equity .............................................................................20(4)Consolidated statements of cash flows ...........................................................................................................22(5)Notes regarding the consolidated financial statements ....................................................................................23(Notes on premise of going concern) ..........................................................................................................23(Changes in accounting policies) ...............................................................................................................23(Segment information, etc.) ........................................................................................................................24(Information per share) ...............................................................................................................................28(Significant subsequent events) ...................................................................................................................28

4

1. Overview of operating results(1) Overview of operating results in fiscal year under review(i) Operating results in fiscal year under review

In the global economy during the period under review, the impact of COVID-19 subsided, but Russia’s invasion of
Ukraine has dragged on, raw material and fuel prices remain high, and semiconductor supply shortages have disrupted
the supply chain. In addition, in the second half of the fiscal year, the impact of curbs on economic activity, including
monetary tightening by central banks around the world, has led to growing concerns over the possibility of an
economic slowdown. In Japan, there were signs of an economic recovery through summer 2022, but there is a riskthat as monetary tightening continues around the world, the disappointing performance of overseas economies could
push down Japan’s economy as well. These conditions call for ongoing vigilance.
In the aluminum industry, demand was low overall, starting with the automobile sector. Total domestic demand foraluminum products fell short of the previous fiscal year’s level. The price of aluminum ingot, a raw material, began
to fall after ongoing price rises through the previous fiscal year, but remains high.
With the business environment changing in complex ways, the Group established its Medium-term Management Plan
(fiscal 2022-2024) in May 2022, and began the plan in fiscal 2022. The Group steadily implemented measures basedon the plan’s basic policies.

The first basic policy is to create products and business that create social value. To this end, the Group made progressin providing products and business that help meet customers’ needs and resolve social issues through tie-ups within
the Group. For example, in the eco-friendly auto field, the Group saw growth in its parts business with the mass
production of power device coolers, overseen by the Group from parts to assembly, and the expansion of new orders.
In addition, Nippon Light Metal Georgia, Inc., a manufacturing subsidiary that makes auto chassis parts, began
operating in January 2023 to better meet the need for lighter automobiles in the US. This was a major first step inestablishing a global supply system.
In addition, Nikkei Panel System decided to increase production of non-fluoron heat-insulating non-combustible
panels to meet growing demand from semiconductor-related factors in Japan and began construction on a second
factory in Shimonoseki. The Group also took steps toward carbon neutrality, such as a horizontal aluminum recycling
program carried out with customers in which decommissioned the Shinkansen car bodies are recycled for use as the
new Shinkansen car bodies. With this and other measures, the Group is accelerating its efforts to reduce CO2
emissions.
The second basic policy is to strengthen the management foundation. Under this policy, the Group moved ahead with
its efforts to reduce energy use and move to different fuels to propel the shift to a carbon neutral society. In addition,
the Group was particularly innovative in improving operation efficiency and raising safety by using digital technology
with the aim of overcoming labor shortages and boosting employee satisfaction.
In order to share these activities with stakeholders, the Group redefined its management philosophy and basic policies
as the Nippon Light Metal Group Management Policies, based on efforts to meet diversifying social issues andcustomer needs and the Group’s important issues (materiality).
On August 31, 2022, Toyo Aluminum K.K., UACJ Corporation, UACJ Foil Corporation, and JIC Capital Corporationagreed that after the Company transferred shares in Toyo Aluminum K.K. to JIC Capital, Toyo Aluminum and UACJ
Foil would carry out a management integration, and a basic agreement on integration was finalized. Since thepreparations for this management integration, including procedures based on the Anti-Monopoly Act, take time, thedates for the share transfer and management integration have been respectively pushed back from March 31 and April
1, 2023.
Financial results in the fiscal year under review were as follows.
Net sales exceeded the previous fiscal year’s level due to revisions to the sales price to reflect the aluminum ingot
market conditions and raw material and fuel prices. However, operating profit, ordinary profit, and profit attributableto owners of parent decreased significantly year on year due to lower sales in the automobile and truck bodies businessand a slowdown in shipments of thick plates for semiconductor manufacturing equipment, as well as pressures on
profits from higher costs resulting from soaring raw material and fuel prices.

5

Consolidated Results of Operations

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent(Unit: million yen)

Current consolidated
fiscal year (ended on
March 31, 2023)
516,954
7,539
8,859

Previous consolidated
fiscal year (ended on
March 31, 2022)
486,579
22,19822,928

7,203

16,759ChangeYoY

30,375(14,659)(14,069)

6.2%(66.0%)(61.4%)(9,556)(57.0%)

An overview of each business segment in the current fiscal year is provided below.
<Aluminum ingot and chemicals>
In the aluminum chemical division, sales for mainstay aluminum hydroxide and alumina-related products forflocculants were solid, and sales increased for chemical products year on year, primarily organic chlorine compounds.
This coupled with the revisions of sales prices resulted in net sales that far exceeded levels in the same period of theprevious fiscal year. Profit and loss were more or less in line with the previous fiscal year due to the substantial impact
of soaring raw material and fuel prices.
The ingot division saw a significant increase in net sales of the mainstay secondary alloy for automobiles comparedto the same period of the previous fiscal year because the sales price was increased to reflect the aluminum ingot
price, although automobile production cutbacks in Japan and lockdowns in China affected the supply chain.
Meanwhile, on the profit side, profit fell sharply compared to the previous fiscal year due primarily to the steep risein raw material and fuel prices.
As a result of the above, net sales in the aluminum ingot and chemicals segment rose by 22.2% over the previous
fiscal year to 155,981 million yen. However, operating profit decreased by 21.7% to 10,201 million yen.
<Aluminum sheet and extrusions>
In the sheet product sector, sales of thick plates for lithium-ion batteries as well as semiconductor and LCD
manufacturing equipment fell, but sales prices were higher than in the previous fiscal year, reflecting conditions in
the aluminum metal market. Accordingly, net sales significantly surpassed the previous fiscal year’s levels. However,on the profit side, the aforementioned decline in product sales, together with the impact of higher costs from the spikein raw material and fuel prices, profit significantly decreased compared to the previous fiscal year.
In the extruded product sector, net sales fell over the previous fiscal year for products for automobiles and truck
bodies were affected by lower production of automobiles and truck chassis, caused by a shortfall in the semiconductor
supply. In terms of profit and loss, sales worsened significantly due to the impact of skyrocketing raw material andfuel prices, in addition to lower sales, resulting in a significant drop in profit compared to the previous fiscal year.
As a result of the above, net sales in the aluminum sheet and extrusions segment decreased by 5.7% over the previous
fiscal year to 107,399 million yen, and operating loss amounted to 541 million yen, a negative difference of 8,059
million yen compared to the same period of the previous fiscal year, which saw a profit of 7,518 million yen.
<Fabricated products and others>
Results in the key sectors are described below.
In the transport-related division, net sales of the truck body business fell far short of levels in the same period of theprevious fiscal year due to the ongoing production cuts of truck chassis and supply chain disruptions, all attributable
to the semiconductor shortage. The situation worsened significantly in terms of profit and loss, as sales price revisions
were not yet effective enough, and in addition, a substantial drop in units sold and higher prices for materials such asaluminum and steel had an impact.
In the heat exchange products business, net sales surpassed the previous fiscal year’s levels due a recovery in demand
from the second half of the fiscal year, primarily for mainstay light automobiles, but profit and loss were more or lessin line with the previous fiscal year due to the impact of the steep rise in raw material and fuel prices.

6

In the industrial parts business, despite lower sales of mainstay brake calipers and automotive air-conditioning
products, attributable to unstable demand in the auto industry, sales of new products increased and sales prices rose,reflecting aluminum ingot prices. As a result, net sales far surpassed the previous fiscal year’s levels, but on the profit
side, the impact of a steep rise in raw material and fuel prices harmed profits significantly.
In the electronic material division, demand in the electronic parts industry overall, starting with semiconductors, fell,
resulting in lower sales of electrode foil for aluminum electrolyzed condensers, and the spike in raw material and fuelprices also had an influence. As a result, both sales and profit fell.
In the panel system division, the freezing and refrigeration field saw active capital investment in distribution centers
due to an increase in the use of frozen food and e-commerce, but sales were unchanged from the same period of theprevious fiscal year due in part to the impact of construction delays caused by difficulties in procuring construction
materials for some large projects. The clean room field was supported by higher demand from semiconductor-related
manufacturers and, as a result, net sales exceeded levels in the same period of the previous fiscal year. As a result,sales and profit both rose for the division overall.
In the landscape engineering division, demand for urban landscapes and landscapes for structures was down, but
demand for scaffolding products used for inspections for roads and bridges was strong. Net sales were up over theprevious fiscal year in the division overall, but profit and loss were more or less in line with the previous fiscal year
due to a sharp rise in the price of construction materials.
In the carbon products division, demand for mainstay carbon blocks for the steel industry was down, but sales ofcarbon blocks for aluminum steel increased, leading to net sales in line with the previous fiscal year. However, on the
profit side, profit decreased significantly due to the impact of the steep rise in raw material and fuel prices.
As a result of the above, net sales in the fabricated products and others segment decreased by 0.2% to 153,167 million
yen over the previous fiscal year, and operating profit worsened by 98.4% due to harsh conditions in the truck bodies
business, to 59 million yen.
<Aluminum foil, powder and paste>
In the aluminum foil division, the sale of foils for automobile lithium-ion battery exteriors fell over the previous fiscal
year due to the ongoing automobile production cutbacks. Despite this, sales and profit both rose for the division
overall due to strong sales of processed foil for medical product packaging, higher sales prices reflecting conditionsin the aluminum ingot market, and sales price revisions in response to the steep rise in raw material and fuel prices.
In the powder and paste division, in powder products, sales of aluminum powder for electronic materials andaluminum nitride for heat dissipation powder products were solid in the first half of the fiscal year but faced aninventory correction in the second half. Moreover, in paste products, sales for mainstay automobile paints continued
to be affected by reduced auto production in Japan, but sales to overseas manufacturers increased. As a result, sales
were up over the previous fiscal year in the division overall, but the profit and loss situation worsened under the
influence of the steep rise in raw material prices.
In the daily necessities division, sales of house-care products and aluminum foil remained solid, despite thereactionary decline in stay-at-home demand from consumers due to the return to pre-pandemic conditions, but salesof house-care products and aluminum foil were solid. In products for packaging, sales for frozen food packaging werestrong. Together with the implementation of sales price revisions, this resulted in net sales over the previous fiscal
year’s levels for the division overall. However, on the profit side, it was not enough to absorb the impact of the spikein raw material and fuel prices, and profit decreased compared to the previous fiscal year.
As a result of the above, net sales in the aluminum foil, powder and paste segment increased 9.5% over the previous
fiscal year to 100,407 million yen. However, the impact of higher costs attributable to a spike in the price of raw
materials, fuel and other materials was substantial, and operating profit fell 3.3% over the previous fiscal year to 1,518
million yen.

7

(ii) Earnings forecasts for the next fiscal year (year ending on March 31, 2024)
Full-year consolidated financial results forecast for the fiscal year ending March 31, 2024
With economic activity normalizing as the impact of COVID-19 subsides, we expect the global economy to make agradual recovery. That said, it remains difficult to make predictions due to Russia’s increasingly prolonged invasionof Ukraine, the spike in resource and energy prices, and the impact of the ongoing increase in prices around the world
and the monetary tightening measures taken to curb this inflation. In this environment, we have estimated consolidated
earnings based on the information and projections available at this point.
The Group’s consolidated earnings forecasts and earnings forecasts by segment for the fiscal year ending in March2024 are shown below.
Consolidated earnings forecasts(Unit: hundred million yen)
Forecast for fiscal
year ending inMarch 2024
(A)

Fiscal year ended in
March 2023 – Actual
(B)

5,500

5,170

330

6.4%

Operating profit

170

75

95

125.5%

Ordinary profit

160

89

71

80.6%

Profit attributable toowners of parent

75

72

3

4.1%

Net sales

Earnings forecasts by segment

Segments

Change(A-B)(Unit: hundred million yen)
Net sales(over previous fiscal year)

Operating profit(over previous fiscal year)

Aluminum ingot andchemicals

1,600

40

2.6%

105

3

2.9%

Aluminum sheet andextrusions

1,050

(24)

(2.2%)

5

11－

Fabricated products
and others

1,820

288

18.8%

70

69

11,764.4%

Aluminum foil,
powder and paste

1,030

26

2.6%

30

15

97.6%

Elimination andcompany-wide

－

－

－

(40)

(3)

－

Total

5,500

330

6.4%

170

95

125.5%

Note: Earnings forecasts are calculated based on information available at this point and may contain risks
and uncertainties. Actual earnings results could differ significantly from forecasts for various
reasons. The key factors that could affect earnings are economic conditions in the Company andGroup companies’ business areas, demand fluctuations, and foreign exchange fluctuations, among
other factors.

8(2) Overview of financial position in current fiscal year
The Group focuses on reducing interest-bearing debt and augmenting its shareholders’ equity to improve its financial
position, while also implementing various measures in its medium-term management plan aimed at improving thehealth and solidity of its management structure.
At the end of the consolidated fiscal year under review, total assets decreased 6.4 billion yen compared with the endof the previous consolidated fiscal year to 526,201 million yen due to a decrease in cash and deposits caused by
expenditure on the implementation of plans for sediment countermeasures, among other factors. Liabilities fell 6,251
million yen compared with the end of the previous consolidated fiscal year to 305,443 million yen as a result of adecrease in provision for environmental measures due to implementation of this plan and other factors. Total net
assets fell 149 million yen compared with the end of the previous consolidated fiscal year to 220,758 million yen due
primarily to a decrease in non-controlling interests attributable to the posting of net loss at a consolidated subsidiaryin which the Group held a non-controlling interest, as well as liquidation of another subsidiary. The equity ratio rosefrom 38.1% at the end of the previous consolidated fiscal year to 39.0%.
Cash flows from operating activities
Cash provided by operating activities in the consolidated fiscal year under review amounted to only 695 million yen.
This was due to the effects of an increase in working capital including trade receivables, as well as expenditure forpurposes such as provision for environmental measures. Cash provided by operating activities fell 792 million yen
compared to the previous consolidated fiscal year, which was largely due to a decrease in profit before income taxes.
Cash flows from investing activities
Cash used in investing activities in the consolidated fiscal year under review totaled 15,123 million yen, primarily
due to purchase of property, plant and equipment. Cash used in investing activities was down 2,898 million yen
compared to the previous consolidated fiscal year, which was primarily due to an increase in proceeds from sale ofinvestment securities.
Cash flows from financing activities
Cash provided by financing activities in the consolidated fiscal year under review amounted to 85 million yen,primarily due to an increase in short-term borrowings. Financing activities used 626 million yen in cash in the previous
consolidated fiscal year, but this consolidated fiscal year financing activities provided 85 million yen, which was
primarily due to a decrease in dividend payments.
As a result, cash and cash equivalents on a consolidated basis were down 13,882 million yen (30.7%) compared tothe end of the previous consolidated fiscal year, to 31,263 million yen.
Reference: Fluctuations in indicators related to cash flow

FY2019FY2020

FY2021

FY2022Equity ratio

39.6%

37.6%

38.1%

39.0%

Mark-to-market capitalratio (%)

22.3%

27.0%

19.9%

17.2%

Cash flow/interestbearing debt ratio

2.7

3.5

104.5

235.4

Interest coverage ratio

41.8

39.6

1.3

0.5

Notes: Equity ratio: Shareholders’ equity/Total assets
Mark-to-market capital ratio: Total market capitalization/Total assets
Cash flow/interest-bearing debt ratio: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest payments9* Indicators are calculated using financial data on a consolidated basis.
* Total market capitalization was calculated by multiplying the stock price at closing at the end of the
fiscal year by the number of outstanding shares (excluding treasury shares) at year-end.
* Cash flow from operating activities in the consolidated cash flow statement is used for the operating
cash flow figure. Interest-bearing debt represents all interest-bearing debt recorded on the
consolidated balance sheet. In addition, the interest payment recorded in the consolidated cash flow
statement is the figure used for interest payments.
(3) Basic policy regarding profit distribution and dividends for the fiscal year ended March 31, 2023 and fiscal
year ending March 31, 2024
The Company’s basic policy on profit distribution is “to return profits to its shareholders by comprehensively taking
into consideration its consolidated financial results and other factors from medium- and long-term perspectives while
reinforcing its financial strength and management foundation.”
The Group decides on dividend amounts using a total dividend payout ratio, including the acquisition of treasury
stock, of 30%, as its indicator for profit returns.
The Group plans to pay year-end dividends of 10 yen per share in the fiscal year ended in March 2023.
The Group decides on dividend amounts for the fiscal year ending March 31, 2024, using a total dividend payout
ratio, including the acquisition of treasury stock, of 30% or more. The Group plans to pay interim dividends of 10 yen
and year-end dividends of 40 yen, for an annual dividend of 50 yen. (The dividend payout ratio based on the
consolidated earnings forecast at this point is 41.3%.)10

2. Management policies(1) Company’s basic policy on management
The Company strives to raise corporate value by utilizing the Group’s wide-ranging aluminum-related knowledge
and diverse businesses, which are its strengths, to the maximum extent, and also endeavors to resolve various social
issues through its business activities to contribute to the realization of a sustainable society. The NLM GroupManagement Policy, which defines the Company’s corporate philosophy and objectives, is as follows.
NLM Group Management Policy♦ Corporate Philosophy
Contribute to improving people's quality of life and environmental protection by continuing tocreate business, focused on aluminum.
♦Basic Policies• The Group will create healthy, safe workplaces, and achieve zero-accident operations.
• The Group will continuously provide diverse value to customers by deepening the level ofcollaboration and coordination within and outside the Group.
• The Group will work actively to achieve carbon neutrality, to help create a sustainable
society.
• The Group will engage in fair and honest business operations, with respect for human rights
and an emphasis on ethics.
• The Group will respect diverse values and develop human resources from a long-term
global perspective.
(Revised: May 16, 2022)(2) Company’s medium- and long-term management strategy
Last year, the Group established a medium-term management plan that began in fiscal 2022 and has been steadily
implementing measures.In addition, the Group has been making reforms to its business structure and management tofurther raise its corporate value, such as the transfer of shares in Toyo Aluminum, the consolidation of the Group’s
auto parts business, strategic initiatives to realize carbon neutrality, and initiatives to prevent a reoccurrence of theinappropriate behavior related to Group’ quality standards that was discovered in 2021 (for details, see “Inappropriate
conduct related to Group’s quality standards” below.) In light of these initiatives, the Group established a new threeyear Medium-term Management Plan (hereinafter, “2023 Medium-term Plan”), starting in fiscal 2023. The basic
policies are as follows:<Basic Policy 1: Initiatives for new team Nippon Light Metal>
In order to become a corporate group that has the trust of its stakeholders by offering reliable value to customers
and other stakeholders, top management will take the lead in pursuing management reforms with a strong senseof purpose.
Specifically, the Group is allocating Group resources in an optimal way to further create Group synergies and ispursuing business structure reforms, including the transfer of shares in Toyo Aluminum and the consolidation of
the auto parts business.
With aluminum receiving more attention as a material that can help realize a decarbonized and recycling-oriented
society, the Group set up a Green growth strategy officein April 2023 to draft and implement the Group’s overall
decarbonization strategy in an integrated way. The Group will work together to pursue the optimal decarbonization
strategies.
The Business transformation officeset up in April 2023 under the direct jurisdiction of the President, will take thelead role in steadily implementing measures to prevent recurrence of quality problems in the future.
<Basic Policy 2 “Provide products and business that help create social value”>
The Group will pursue Group synergies by strengthening the Group’s cooperative system by rebuilding its

11

business divisions and development system, and will also meet customer needs throughout the supply chain
lifecycle with diverse products and businesses that help solve social issues. In particular, in the eco-friendly autorelated business, a future growth business, the Group will consolidate its existing related business divisions andform the new Nikkeikin ALMO Corporation, Ltd. in October 2023, with the aim of ensuring the Group’s status
in this field.
The Group is also actively working on its semiconductor-related business. For example, it decided to increase
production of fluorocarbon-free heat-insulating non-combustible panels for clean rooms this fiscal period to meetthe increase in semiconductor manufacturing factories in Japan in light of stronger economic security.
By developing and providing products that utilize the strengths of aluminum as a lightweight material with highheat dissipation, the Group will meet customers’ growing need to reduce global warming gases and also help toprotect the environment.
[Inappropriate behavior regarding issues related to quality in the Group]
In June 2021, the Company learned that a Group company had been involved in inappropriate behavior regarding thestandards specified in the Ministerial Ordinance on Certification of Conformity to Japanese Industrial Standards (JIS)relating to mineral and industrial products and their processing technologies. A special investigation committee madeup of external experts was established and an investigation duly carried out. This investigation ended up taking
considerable time since the scope of the investigation by the special investigation committee was expanded beyond
the JIS-certified subsidiary, resulting in delays in sharing the investigation results with shareholders and otherstakeholders. We apologize for this delay.
On March 29, we received the Investigation Report from the special investigation committee. The results of thisinvestigation by the committee confirmed 214 cases of inappropriate behavior regarding manufacturing methods, test
and inspection methods, handling of test and inspection results, and reports and their release at 36 places of businessof 18 Group companies.
We would like to take this opportunity to apologize again for the serious inconvenience caused to customers,
shareholders and other stakeholders as a result of this inappropriate behavior. We take the results of this investigation
very seriously and in order to clarify management responsibility, the compensation of the Company’s executives,
including our representative director and president, will be reduced.
The Company takes the results of the special investigation committee’s investigation very seriously, and all of theGroup’s officers and employees will earnestly implement the measures designed to prevent reoccurrence that aredescribed below, with top management taking the lead.
In addition to setting up the Reform Promotion Office, an organization to manage the Group’s overall progress withthese preventive measures in an integrated way and promoting the efforts, the Company will regularly report on the
progress made on our website.
The Group is determined and ready to focus on preventing a reoccurrence of these events so that we can transform
into a corporate group worthy of the trust of its stakeholders.
The results of the investigation by the special investigation committee and details on the Group’s preventive measures
are available on the following website. A summary of these measures is provided below.
Company website: https://www.nikkeikinholdings.co.jp/news/news/p2023032901hd.html
Group initiatives to prevent reoccurrence
1. Management reforms(1) Rebuild Group’s governance system – Strengthen Group affiliation
By linking together the small-scale businesses within the Group, the Group will maximize its use of thedevelopment, manufacturing, quality assurance and management functions that it boasts, and overcome theconstraints on management resources that individual businesses faced when working on their own.
(2) Rebuild relationships between the Company and Group companies
With the aim of creating synergies through stronger affiliations between Group companies, the Group will work

12

toward integrated Group management by encouraging wide-ranging discussions of specific approaches to andmeasures for the management issues facing the Group companies. These issues will be addressed with anawareness shared by the Group overall while strengthening ties.
(3) Address management issues and risks within the Group
While respecting the independence of Group companies, we will strengthen the Group’s cross-cutting risk
management initiatives. We will pursue effective initiatives in areas that need addressing, while always
identifying milestones and KPI.
(4) Cross-sectoral response by sales, development, manufacturing, quality assurance and other divisions
The Company has determined that the problem of meeting deadlines was an important factor in motivating andjustifying the inappropriate behavior, and also provides context for this behavior. We will establish rules andsystems that the sales, development and manufacturing divisions can agree on to rebuild the relationships
between sales, development, manufacturing and quality assurance.
(5) Rebuild the quality assurance system
We will strive to reinforce the quality assurance function and systems, with the reinforcement of independence
and authority as a pillar, so that we can provide adequate guidance and support to the development andmanufacturing divisions as they address the urgent management issue of rebuilding the quality assurance
system. In addition, we will reinforce quality supervision and the quality assurance system for the Groupoverall.
(6) Constant verification
Going forward, we will take the aforementioned preventive measures and constantly verify whether
inappropriate behavior is occurring again and is underway and will strive to prevent inappropriate behavior aswell as discover it and take remedial action.
(7) Reinforce supervision by Board of Directors
The Company’s Board of Directors will carefully monitor and take oversight responsibility for whether
measures to prevent reoccurrence are being effectively implemented. In order to raise the effectiveness of theBoard of Directors’ oversight responsibility, we will continue to take initiatives to ensure systems and structures
are tailored to management issues and improve operations so that effective deliberations take place at the Boardof Directors meetings.
2. Reinforce internal control functions(1) Build and administer effective internal control system under supervision of Board of Directors
We will fulfill oversight responsibilities so that effective internal control systems are built and administered,based on the basic policy for the internal control system resolved by the Company’s Board of Directors.
(2) Reforms of corporate culture
To create a foundation for prevention, we think that we must reform the awareness of the Group’s executives
and employees and the corporate culture, which formed the backdrop for the inappropriate actions. Reforming
the culture requires unceasing effort over a long period of time, but we will revise our management policies,
principles of conduct and code of conduct and endeavor to familiarizes executives and employees with thecorporate philosophy and create a culture in which employees can speak out frankly.
(3) Reinforce information reporting and affiliations
We will work to entrench a general understanding that the worse the information, the faster it should becommunicated. This way, we can reinforce the information reporting and affiliations that support theeffectiveness of an internal control system.
(4) Promote activities to strengthen compliance
One of the causes of, as well as the context for, the inappropriate behavior was the erroneous self-serving
assumption that as long as there was no actual harm done to product safety, minor noncompliance with13

specifications, procedures and standards would be acceptable. To prevent employees from using this kind of
thinking to justify inappropriate acts, going forward we will designate the risk of violating laws, regulations
and standards as the Group’s priority risks. We will also carry out education, guidance and support on an
ongoing basis to improve and familiarize employees with quality compliance. The Company has designatedMarch 29, the day that the special investigative committee’s investigation results were received and published,as the Group’s Quality Day, a day on which we will confirm the results of preventive measures without
forgetting the lessons we’ve learned.
(5) Reinforce internal audit division
As emphasized in the Institute of Internal Auditors’ Three Lines Model, sales, development and manufacturing(the first line) will identify, assess and respond to risks themselves, while the quality assurance division (secondline) will support and restrain the first line’s risk management. In addition, we will expand the internal audit
division (third line) and carry out effective internal audits that extend to the second line and thus the first line.
(6) Reforms to internal reporting system
We will protect whistleblowers, reinforce confidentiality, and augment the leniency system so that the Group’s
executives and employees recognize it as a reliable internal reporting system. In addition, we will make ongoing
efforts to raise understanding of and familiarity with the internal reporting system and improve accessibility.
(7) Utilize external resources
We will utilize external resources such as appointing expert staff and using external services so that preventive
measures are steadily, more effectively and continuously implemented.
(3) Management indicators
The Group strives for a system that can permanently achieve ordinary profit in the 30-40 billion yen in order to achievesustainable growth. The 2023 Medium-term Plan aims to build a revenue foundation that is highly resilient in the faceof changes in the external environment by ensuring that each business division creates value through its own growthstrategies and that Group issues are addressed by(Unit: hundred million yen)

Net sales
Operating profit
Ordinary profit
ProfitR O C E（％）

Fiscal year
ended
March 2022
(actual)Fiscal year
ended inMarch 2023
(actual)Fiscal year
ending inMarch 2024
(forecast)

4,866
222
229
168
8.7

5,170
75
89
72
3.2

5,500
170
160
75
5.2

14

Fiscal year endingin March 2026
(2023 Mediumterm Plan
Objectives)
5,300
300
300
200
10.3

The Group pays dividends in line with the basic policy regarding profit distribution outlined on page 7 of thesematerials.
FY2022

Dividends

Interimactual40 yenYear-endplan
10 yenFY2023
Interim
forecast
10yen

Year-end
forecast
40yen

FY2025, final year of2023 Medium-term
Plan
Annual reference
figure100 yen

3. Basic approach to selection of accounting standards
The Group will prepare its consolidated financial statements based on Japanese standards in the near term considering
comparability between periods in consolidated financial statements and comparability between companies.
The Group will respond appropriately to the adoption of international accounting standards, taking into accountconditions in Japan and overseas.

15

4. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, As of March 31,
2022
2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade, and contract assets
Electronically recorded monetary claims – operating
Merchandise and finished goods
Work in progress
Raw material and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

16

45,188
115,558
28,62039,45021,72928,21818,350(386)
296,727

31,305
116,80233,90744,576
20,71529,332
16,062(366)
292,333

160,950(101,628)
59,322306,064(258,196)
47,86837,836(31,987)
5,849
54,904
7,980
175,923

163,640(104,801)
58,839311,692(264,204)
47,48838,812(32,939)
5,873
55,046
7,003
174,249

2,442
9,948
12,390

1,771
10,392
12,16329,798
10,961
7,353(551)
47,561
235,874
532,601

33,546
8,392
6,071
(553)
47,456
233,868
526,201

(Millions of yen)
As of March 31, As of March 31,
2022
2023

Liabilities

Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for recall
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Provision for environmental measures
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedge
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

17

72,324
66,276
11,9694,264
1,098
34,611
190,542

68,53980,29012,867
1,025
168
33,590196,479

734
76,427
18,776
18,253
6,962
121,152
311,694

801
69,612
18,571
12,693
7,287
108,964
305,443

46,525
19,107
129,465(130)
194,967

46,52519,087130,938(95)
196,455

2,821
186
145
5,555
(585)
8,122
17,818220,907532,601

3,535
(39)
145
5,826
(447)
9,020
15,283
220,758
526,201

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY ended
FY ended
March 31, 2022 March 31, 2023
(Apr. 1, 2021 - (Apr. 1, 2022 Mar. 31, 2022) Mar. 31, 2023)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Share of loss (profit) of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating profit
Non-operating expenses
Interest expense
Rental expense
Expenses related to special investigation
Restructuring expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on change in equity
Gain on sale of shares of subsidiaries and associates
Gain on step acquisitions
Gain on sale of non-current assets
Gain on contribution of securities to retirement benefit trust
Total extraordinary income
Extraordinary losses
Expense related to recall
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

18

486,579395,229
91,35069,152
22,198516,954440,024
76,93069,391
7,539

80
472
1,663
461
2,557
5,233

115
309
1,989
1,148
3,397
6,958

1,089
647
606
‐
2,161
4,503
22,928

1,288
670
658
640
2,382
5,638
8,859

‐
1,962
1,526
912
854
5,254

1,883
‐
‐
‐
‐
1,883

1,481
1,402
2,883
25,299
7,656
268
7,924
17,375616
16,759‐‐‐10,742
2,650
2,441
5,091
5,651
(1,552)
7,203

Consolidated Statements of Comprehensive Income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Share of other comprehensive income of entities accounted for using equity method

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

19(Millions of yen)
FY ended
FY ended
March 31, 2022 March 31, 2023
(Apr. 1, 2021 - (Apr. 1, 2022 Mar. 31, 2022) Mar. 31, 2023)
17,375

5,651

(869)
163
2,995
(21)
431
2,699
20,074
18,932
1,142

786
(226)
(292)
77
676
1,021
6,672
8,101
(1,429)(3) Consolidated Statement of changes in shareholders' equity
Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)

Shareholders' equity
Share capital

Capital surplus

Balance at beginning of current period
Cumulative effects of changes inaccounting policies

46,525

Restated balance

46,525Retained earnings

18,992

Total shareholders'

Treasury shares

119,377

equity184,763(131)

51
18,992

51

119,428(131)

184,814

Changes during period
Dividends of surplus
Profit attributable to owners of parent(6,501)(6,501)

16,75916,759Purchase of treasury shares
Disposal of treasury shares

11

Change in scope of consolidation
Change in ownership interest of parent
due to transactions with noncontrolling interests

(80)

(23)

(23)

24

35

(221)

(301)

184

184
－

Tax effect adjustment on change inequity of prior period
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of current period－

115

10,0371

10,153

46,525

19,107

129,465(130)

194,967

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of current

3,642

Deferred
gains orlosses onhedges24

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated othercomprehensive income

Noncontrollinginterests

Total net

145

2,665

(527)

5,949

16,392

207,104

Cumulative effects of changes
in accounting policies
Restated balance

assets

51
3,642

24

145

2,665

(527)

5,949

16,392

207,155

Changes during period
Dividends of surplus
Profit attributable to owners ofparent(6,501)
16,759Purchase of treasury shares(23)

Disposal of treasury shares

35

Change in scope of(301)

Change in ownership interestof parent due to transactions
with non-controlling interests

184

Tax effect adjustment onchange in equity of priorperiodNet changes in items otherthan shareholders' equity

(821)

162

－

2,890

(58)

2,173

1,426

3,599

Total changes during period

(821)

162

－

2,890

(58)

2,173

1,426

13,752

Balance at end of current period

2,821

186

145

5,555

(585)

8,122

17,818220,907－20

Fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Millions of yen)

Shareholders' equity
Share capital

Capital surplus

Balance at beginning of current period
Cumulative effects of changes inaccounting policies

46,525

Restated balance

46,525Retained earnings

19,107

Total shareholders'

Treasury shares

129,465(130)

equity194,967－

19,107

129,465(130)

194,967

Changes during period
Dividends of surplus
Profit attributable to owners of parent(5,263)(5,263)

7,203

7,203

Purchase of treasury shares

(12)

(12)

Disposal of treasury shares

30

33

17

(450)

3

Change in scope of consolidation
Change in ownership interest of parent
due to transactions with noncontrolling interests
Tax effect adjustment on change in equity
of prior period
Net changes in items other thanshareholders' equity

(467)

－
(23)

－

(20)

1,473

35

1,488

46,52519,087130,938(95)

196,455

Total changes during period
Balance at end of current period(23)

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of current

2,821

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated othercomprehensive income

Noncontrollinginterests

Total net

186

145

5,555

(585)

8,122

17,818220,907

Cumulative effects of changes
in accounting policies
Restated balance

assets

－
2,821

186

145

5,555

(585)

8,122

17,818220,907

Changes during period
Dividends of surplus
Profit attributable to owners ofparent(5,263)Purchase of treasury shares(12)

Disposal of treasury shares

33

7,203

Change in scope of(450)

consolidation
Change in ownership interestof parent due to transactions
with non-controlling interests－

Tax effect adjustment onchange in equity of priorperiod(23)

Net changes in items otherthan shareholders' equity

714

(225)

－

271

138

898

(2,535)(1,637)

Total changes during period

714

(225)

－

271

138

898

(2,535)

(149)

3,535

(39)

145

5,826

(447)

9,020

15,283

220,758

Balance at end of current period21

(4) Consolidated Statements of Cash Flows(Millions of yen)
FY ended
FY ended
March 31, 2022 March 31, 2023
(Apr. 1, 2021 - (Apr. 1, 2022 Mar. 31, 2022) Mar. 31, 2023)

Cash flows from operating activities

Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on change in equity
Loss (gain) on sale of shares of subsidiaries and associate
Loss (gain) on step acquisitions
Loss (gain) on sale of non-current assets
Loss (gain) on contribution of securities to retirement benefit trust
Expenses related to recall
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for environmental measures
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid

25,29920,063554‐(1,962)(1,526)
(912)
(854)
1,481
1,402
(12)
444
(6,381)(552)
1,089(1,663)(8,763)(22,642)
4,007
(868)
8,204
704
(1,120)(6,301)
1,487

10,742
19,732691(1,883)
‐
‐
‐
‐
‐
‐
(23)
249
(5,560)(424)
1,288(1,989)(5,916)(4,187)(2,197)(203)
10,320587(1,296)(8,916)695

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries resulting in change in scope of
consolidation(18,648)
1,168(2,202)
165(16,515)233(1,893)
3,409

2,616

‐

(1,149)29(18,021)‐(357)(15,123)

10,7796,143(8,469)(6,501)(953)

13,363
6,689(12,773)(5,255)
(716)

(668)

‐

(957)
(626)
1,014
(16,146)
61,176
115
45,145(1,223)85
461(13,882)
45,145‐31,263

Net cash provided by operating activities
Cash flows from investing activities

Purchase of shares of subsidiaries resulting in change in scope of consolidation

Other

Net cash used in investing activities
Cash flows from financing activities

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation
Other

Net cash provided by (used in) financing activities

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year

Increase in cash and cash equivalents from newly consolidated subsidiary

Cash and cash equivalents at end of the year22(5) Notes regarding the consolidated financial statements(Notes on premise of going concern)
Not applicable(Changes in accounting policies)(Application of guidelines on the application of accounting standards, etc. relating to fair value
measurement)
The Company applied the “Accounting Guidelines for the Accounting Standards for Fair Value
Measurement” (ASBJ Statement No. 31; June 17, 2021; hereinafter “Application Guidelines for the
Accounting Standards for Fair Value Measurement”) and related implementation guidance from the
beginning of the current consolidated fiscal year. Accordingly, pursuant to the transitional measuresprescribed in paragraph 27-2 of the Application Guidelines for the Accounting Standards for Fair
Value Measurement , the new accounting policy as set forth in the Application Guidelines for the
Accounting Standards for Fair Value Measurement will be applied prospectively. There is no impactof this application on the consolidated financial statements.

23

(Segment information, etc.)
a. Segment information
1. Summary of reportable segments
The Group’s reportable segments are those units for which discrete financial information is available and that areperiodically evaluated so that the Board of Directors can decide on the allocation of management resources andassess performance.
The Group primarily carries out business related to the four areas of aluminum ingot and chemicals, aluminum
sheet and extrusions, fabricated products and other, and aluminum foil, powder and paste; these products cover awide range of areas related to aluminum.
The aluminum ingot and chemicals segment sells aluminum, aluminum hydroxide, various chemicals andaluminum ingot and alloys. The aluminum sheet and extrusions segment sells aluminum sheet and aluminum
extruded products. The fabricated products and others segment sells transport-related products, and aluminum
fabricated products such as freezer and refrigeration panels and electronic materials. The aluminum foil, powder
and paste segment sells foil and powder products.
2. Method of calculating net sales, profit (loss), assets and other items by reportable segment
The accounting methods for reported business segments are generally the same as those for statements in the “Basisof Presenting the Consolidated Financial Statements.” Profit by reportable segment is based on operating profit.
Intersegment sales and transfers are based on actual market prices.

24

3. Information on net sales, profit (loss), assets and other items by reporting segment
The Fiscal Year Ended March 31, 2022 (April 1, 2021, to March 31, 2022)(Millions of yen)

Reporting segments
Aluminum Aluminum Fabricated Aluminum
ingot andsheet and products and foil, powder
chemicals extrusions
othersand paste

Total

Adjustments*1

Consolidated
profit/loss
posted*2

Net sales
Net sales to external
127,633
113,876
153,415
91,655486,579
486,579－
customers
Intersegment sales
52,63024,826
17,268391
95,115(95,115)－or transfers
180,263
138,702
170,683
92,046581,694(95,115)
486,579
Total
13,021
7,518
3,776
1,570
25,885(3,687)22,198Segment profit (loss)
155,692
123,293
166,376
109,465554,826(22,225)532,601
Segment assets
Other items
4,323
5,816
4,716
4,724
19,579484
20,063
Depreciation
Amortization of
554
444
110
554
－
－
－
goodwill
1,014
370
18
1,402
1,402
－
－
Impairment
Investment in entities
4,744
2,892
3,637
3,800
15,073
15,073－
accounted for using
equity method
Increases in property,
5,264
8,296
5,146
4,149
22,855367
23,222plant and equipment,
and intangible assets
Notes:
1. The adjustments are shown below.
(1) The 3,687-million-yen negative adjustment to segment profit represents corporate expenses and mainlycomprises expenses related to General Affairs, HR, Accounting, and other head office administration
departments of the Company and Nippon Light Metal Company, Ltd.
(2) The 22,225-million-yen negative adjustment to segment profit represents 52,754 million yen in theelimination of intersegment assets and 30,529 million yen in corporate assets that are not attributable toreportable segments. Corporate assets primarily refer to excess funds (cash and securities) and assets
related to administration departments of the Company and Nippon Light Metal Company, Ltd.
(3) Adjustment of 484 million yen in depreciation represents amortization of corporate assets that are not
attributed to a specific segment.
(4) The 367-million-yen adjustment in increase in property, plant and equipment and intangible assets mainly
consists of an increase in corporate assets that are not attributed to a specific segment.
2. Segment profit is adjusted with operating profit on the consolidated statements of income.

25

The Fiscal Year Ended March 31, 2023 (April 1, 2022, to March 31, 2023)
Reporting segments
Aluminum Aluminum Fabricated Aluminum
ingot andsheet and products and foil, powder
chemicals extrusions
othersand paste(Millions of yen)

Total

Adjustments*1

Consolidate
d profit/loss
posted*2

Net sales
Net sales to external
155,981
107,399
153,167
100,407516,954
516,954－
customers
Intersegment sales
58,58925,99817,567388
102,542(102,542)－
or transfers
214,570
133,397
170,734
100,795
619,496
516,954(102,542)
Total
10,20159
1,518
11,237
7,539(541)(3,698)Segment profit (loss)
161,283
120,261
168,806
108,437
558,787
526,201(32,586)
Segment assets
Other items
4,468
5,171
4,816
4,835
19,290442
19,732
Depreciation
Amortization of
444
247
691
691
－
－
－
goodwill
－
－
－
－
－
－
－
Impairment
Investment in entities
4,601
3,198
3,935
6,552
18,286
18,286－accounted for using
equity method
Increases in property,
4,582
5,160
5,046
3,273
18,061
192
18,253plant and equipment,
and intangible assets
Notes:
1. The adjustments are shown below.
(1) The 3,698-million-yen negative adjustment to segment profit represents corporate expenses and mainlycomprises expenses related to General Affairs, HR, Accounting, and other head office administration
departments of the Company and Nippon Light Metal Company, Ltd.
(2) The 32,586-million-yen negative adjustment to segment profit represents 51,938 million yen in theelimination of intersegment assets and 19,352 million yen in corporate assets that are not attributable toreportable segments. Corporate assets primarily refer to excess funds (cash and securities) and assets
related to administration departments of the Company and Nippon Light Metal Company, Ltd.
(3) Adjustment of 442 million yen in depreciation represents amortization of corporate assets that are not
attributed to a specific segment.
(4) The 192-million-yen adjustment in increase in property, plant and equipment and intangible assets mainly
consists of an increase in corporate assets that are not attributed to a specific segment.
2. Segment profit is adjusted with operating profit on the consolidated statements of income.

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b. Related information
The Fiscal Year Ended March 31, 2022 (April 1, 2021, to March 31, 2022)
1. Information by product and service
Information by product and service is omitted here as segmentation is equivalent to that used for reportablesegments.
2. Information by region(1) Net sales(Millions of yen)
Japan

Other

382,778

Total
103,801

486,579

Note: Net sales are classified by country or region based on the customer’s location.
(2) Property, plant and equipment(Millions of yen)
Japan

Other

158,447

Total
17,476

175,923

3. Information by major customer
Information by major customer is omitted since there were no sales from a single customer accounting for 10% ormore of consolidated net sales.
The Fiscal Year Ended March 31, 2023 (April 1, 2022, to March 31, 2023)
1. Information by product and service
Information by product and service is omitted here as segmentation is equivalent to that used for reportablesegments.
2. Information by region(1) Net sales(Millions of yen)Japan
402,220

Other

Total

114,734

516,954

Note: Net sales are classified by country or region based on the customer’s location.
(2) Property, plant and equipment(Millions of yen)Japan
157,222

Other

Total
17,027

174,249

3. Information by major customer
Information by major customer is omitted since there were no sales from a single customer accounting for 10% ormore of consolidated net sales.

27

(Information per share)
Fiscal Year Ended March 31, 2022
(April 1, 2021, to March 31, 2022)

Fiscal Year Ended March 31, 2023
(April 1, 2022, to March 31, 2023)¥ 3,281.17¥270.77¥3,318.17

Net assets per share
Net profit per share

Net profit per share (diluted)(Notes)1. Net profit per share (diluted) is not presented since there is no dilutive share.
2. The basis for calculating net profit per share is as follows.

－

Fiscal Year Ended March 31, 2022
(April 1, 2021, to March 31, 2022)¥116.33－

Fiscal Year Ended March 31, 2023
(April 1, 2022, to March 31, 2023)

Net profit per share
Profit attributable to owners of parent(Millions of yen)

16,7597,203

Amount not attributable to ordinary shareholders(Millions of yen)－－

Profit attributable to owners of parent related tocommon stock (Millions of yen)

16,759

7,203

Average number of common stock outstanding
during the term (shares)

61,894,906

61,917,662(Significant subsequent events)
No applicable information

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