Financial results for the fiscal year
ended March 31, 2022
and medium-term management plan

May 30, 2022

Nippon Light Metal Holdings Company, Ltd.

Table of Contents
1. Financial results for the fiscal year ended March 31, 2022 andforecast of financial results for the fiscal year ending March 31,
2023(1) Consolidated financial results for the fiscal year ended March 31, 2022
(2) Forecast of financial results for the fiscal year ending March 31, 2023

2. Medium-term management plan
(1) Review of fiscal 2019-2021 medium-term management plan (2019Medium-term Plan)(2) Overview of fiscal 2022-2024 medium-term management plan (2022Medium-term Plan)

2

Table of Contents
1. Financial results for the fiscal year ended March 31, 2022 andforecast of financial results for the fiscal year ending March 31,
2023(1) Consolidated financial results for the fiscal year ended March 31, 2022
(2) Forecast of financial results for the fiscal year ending March 31, 2023

2. Medium-term management plan
(1) Review of fiscal 2019-2021 medium-term management plan (2019Medium-term Plan)(2) Overview of fiscal 2022-2024 medium-term management plan (2022Medium-term Plan)

3

Consolidated financial results for the fiscal year ended March 31, 2022

Financial results for the fiscal year ended March 31, 2022
– compared with the previous year

(Billions of yen)

Fiscal 2021
Results

Fiscal 2020
Results

Net sales

486.6

432.6

Operating profit

22.2

24.2

Ordinary profit

22.9

24.0

Profit attributable toowners of parent

16.8

3.4

(+397.9%)

ROCE

8.7%

8.4%

+0.3p

Dividends per share

85 yen65 yen+20 yenChange+54.0(+12.5%)-2.0(-8.2%)-1.1(-4.6%)+13.4

4

Consolidated financial results for the fiscal year ended March 31, 2022

Factors behind changes in ordinary profit – compared with the previous year
Fiscal 2020
Results

Fiscal 2021
Results-1.1 billion yen(Billions of yen)

+7.1
+0.4

22.9
-5.9
Other

Purchased
products

New products

Sales volume-2.8
Sales price

24.0

+0.1

5

Consolidated financial results for the fiscal year ended March 31, 2022

Segment information – compared with the previous year
(Billions of yen)

Net sales
Fiscal 2021 Fiscal 2020
Results
Results
Aluminum ingot
and chemicals
Aluminum sheet
and extrusions
Fabricatedproducts andother
Aluminum foil,
powder, andpasteManagement,
shared
Total

127.6

91.2

Operating profit
Change+36.4(+40.0%)+16.0

Fiscal 2021 Fiscal 2020
Results
Results

Change

+3.4

13.0

9.6

7.5

6.0

3.8

8.9
3.3

(-52.6%)(+35.4%)

+1.5

113.9

97.9

153.4

157.3

91.7

86.2

(+6.3%)

1.6

－

－

－

-3.7

-3.6

-0.1

486.6

432.6

22.2

24.2

-2.0

(+16.4%)-3.9(-2.5%)

+5.5

+54.0
(+12.5%)(+26.4%)-5.1(-57.5%)-1.7(-8.2%)

6

Table of Contents
1. Financial results for the fiscal year ended March 31, 2022 andforecast of financial results for the fiscal year ending March 31,
2023(1) Consolidated financial results for the fiscal year ended March 31, 2022
(2) Forecast of financial results for the fiscal year ending March 31, 2023

2. Medium-term management plan
(1) Review of fiscal 2019-2021 medium-term management plan (2019Medium-term Plan)(2) Overview of fiscal 2022-2024 medium-term management plan (2022Medium-term Plan)

7

Consolidated earnings forecasts for the fiscal year ending March 31, 2023

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

Fiscal 2022
Forecasts

Fiscal 2021
Results

Change+53.4

Net sales

540.0

486.6

Operating profit

20.0

22.2

Ordinary profit

20.0

22.9

Profit attributable toowners of parent

14.0

16.8

(-16.7%)85 yen (*)

85 yen±0

Dividends per share(+11.0%)-2.2(-9.9%)-2.9(-12.7%)-2.8*Interim dividend: 40 yen/share; year-end forecast: 45 yen/share; dividend payout ratio: 37.6％

8

Consolidated earnings forecasts for the fiscal year ending March 31, 2023

Factors behind changes in ordinary profit – compared with the previous year
Fiscal 2021
Results

Fiscal 2022
Forecasts-2.9 billion yen(Billions of yen)

+9.7

+3.5
-0.7

22.9

20.0

-2.3
Other

Purchased
products

New products

Sales volume

Sales price

-13.1

9

Consolidated earnings forecasts for the fiscal year ending March 31, 2023

Segment information – compared with the previous year
(Billions of yen)

Net sales
Fiscal 2022
Forecasts

Fiscal 2021
Results

Aluminum ingot
and chemicals

161.0

127.6

Aluminum sheet
and extrusions
Fabricatedproducts andother
Aluminum foil,
powder, andpasteManagement,
shared

109.0

113.9

167.0

153.4

Total

103.0

91.7

－
540.0

Operating profit
Change+33.4(+26.1%)-4.9(-4.3%)+13.6(+8.9%)+11.3

Fiscal 2022
Forecasts

Fiscal 2021
Results

12.5

13.0

4.0

7.5

3.5

3.8

(+12.4%)

4.0

1.6

－

－

-4.0

-3.7

486.6

+53.4

20.0

22.2

(+11.0%)Change-0.5(-4.0%)-3.5(-46.8%)-0.3(-7.3%)+2.4(+154.8%)

-0.3
-2.2
(-9.9%)

10

Table of Contents
1. Financial results for the fiscal year ended March 31, 2022 andforecast of financial results for the fiscal year ending March
31, 2023(1) Consolidated financial results for the fiscal year ended March 31, 2022
(2) Forecast of financial results for the fiscal year ending March 31, 2023

2. Medium-term management plan
(1) Review of fiscal 2019-2021 medium-term management plan (2019Medium-term Plan)(2) Overview of fiscal 2022-2024 medium-term management plan (2022Medium-term Plan)

11

Review of 2019 Medium-term Plan

Summary
Secure a certain amount of revenue even in harshbusiness environment(Unit: Billions of yen)2013 mediumterm plan

40

2016 mediumterm plan2019 mediumterm plan

29.5 31.1

30

24.5
20.6

20

26.3

2019 Medium-term Plan: Although financial targets
were not achieved, we have built up a system that can

23.5 24.0 22.9

12.7

10



6.9

0
F12 F13 F14 F15 F16 F17 F18 F19 F20 F21
Fluctuations in consolidated ordinary profit

steadily generate 20 billion yen in ordinary profit
External environment marked bynegative factors such as the US-China
trade friction, COVID-19, semiconductor
shortages, a spike in raw material andfuel costs and other12

Review of 2019 Medium-term Plan

Financial indicators(Billions of yen)

Fiscal 2018
Results

Fiscal 2019
Results

Fiscal 2020
Results

Fiscal 2021
Results

2019 Mediumterm Plan
Targets

Net sales

500.5

465.9

432.6

486.6

540.0

Operating profit

30.1

24.6

24.2

22.2

37.5

Ordinary profit

31.1

23.5

24.0

22.9

37.0

Profit attributableto owners of parent

20.6

7.5

3.4

16.8

24.0

ROCE

10.8%

8.0%

8.4%

8.7%

11.4%

Total dividend
payout ratio

27.1%

74.6%

119.6%

31.2%

30% asstandard
13

Review of 2019 Medium-term Plan

Primary specific measures implemented
Specific results from 2019 medium-term plan
Creation of
new products andnew businesses

 Eco-friendly cars:
Use of heat-release plates for power control units Eco-friendly cars:
Use of battery cooling plates Medical applications: Use of panels for clean rooms

Dedicate resources
for growth North America: Establishment of company for manufacture and sale of auto underbody parts
 India:
Operations at second factory for secondary alloys, established third base (newcompany) India:
Aluminum foil processing company made a subsidiary Japan:Technology lab for panels established

Reinforce
managementfoundation
Addressing issues

 Nikkei Heat Exchanger and Nikkei Engineering made wholly owned subsidiaries
 Sold equity in investment in Tokyo Precision Appliance (Kunshan) Co., Ltd.
 Establishment of Nomination and Compensation Committee Identification of important issues and value creation process (issuance of 2021 Integrated
Report) Sediment countermeasures at Amehata Dam: Emergency measures, completion of short-term plan (dirt removal), madeprovisions for reserves for countermeasure costs
 Inappropriate actions related to JIS certification: Recognized this as an important issue, currently taking measures to prevent
reoccurrence14

Table of Contents
1. Financial results for the fiscal year ended March 31, 2022 andforecast of financial results for the fiscal year ending March
31, 2023(1) Consolidated financial results for the fiscal year ended March 31, 2022
(2) Forecast of financial results for the fiscal year ending March 31, 2023

2. Medium-term management plan
(1) Review of fiscal 2019-2021 medium-term management plan (2019Medium-term Plan)(2) Overview of fiscal 2022-2024 medium-term management plan (2022Medium-term Plan)

15

Overview of 2022 Medium-term Plan

Ambitions incorporated in medium-term management plan

Development of corporate structure
capable of sustainable growth
Team NLM offers “customer value”
and achieves economic value and social value

16

Overview of 2022 Medium-term Plan

Nippon Light Metal Group’s visionCorporate structure that can achievesustainable growth
Identify possible
material issues
Step1• Created a short list from nearly
400 social issues related to
ESG

Material issues

Assess materiality
Step2• Identified issues that were very
material in terms of social
importance and the importanceof the Group’s corporate value

Confirm validity andcomprehensiveness• Assessment by external
experts
Step3 • Reconsideration from
aforementioned results

Confirmation ofimportant issues• Approval at Board of Directors’
meeting after CSR Committee
Step4
and Executive Committee

Environmental
conservation

Providingsustainablevalue

Nippon Light
Metal Group’s
visionMaximization of
corporate value

Happiness of
employees

Responsible
Corporate ethics,
procurement,
corporate
manufacturing
governanceand supply

Management policies
We will help to improve peoples’
lives and protect theenvironment by continuing tocreate businesses centered onaluminum.

17

Overview of 2022 Medium-term Plan

Basic policies of medium-term management plan
Team NLM—Groundbreaking Innovator of Aluminumand Beyond
1. Provide products and businesses that contribute to the creation of social value Provide products and businesses that satisfy customers’ needs
 Provide a range of products and businesses throughout the overall supply chain lifecycle
 Strengthen the Group collaboration system to solve social issues

2. Strengthen management foundation
 Thorough quality compliance (restoring social trust) Top priority on safety and thorough compliance Response to carbon neutrality
 HR expansion, appointments and education to improve sustainable corporate value

18

Overview of 2022 Medium-term Plan

Specific actions
Basic policies
Provide products
and businesses
that contribute to
the creation ofsocial value

Strengthen
managementfoundation

Measures2022 Medium-term Management Plan

Reinforce parts business for ecofriendly cars

Reinforce parts business for eco-friendly cars

Expand global markets

North America: Start of mass production of auto parts; India: Startof mass production of secondary alloys

Carbon neutral (opportunity side)

Horizontal recycling and cascade recycling initiatives, creation of
eco-friendly products

Carbon neutral (risk side)

Use of existing technology and external technology, energyconservation activities, fuel development

Quality (restore social trust)

Construction of quality management system, creation of structure thatprevents the occurrence of inappropriate actions from simply fading away

SafetyZero-accident initiatives that are sustained and well-establishedwithin the organization

Operational reforms and workstylereforms through DX

Digitization, greater efficiency, common standards, optimization

Happiness of employees

Safety and hygiene, work motivation, diversity and inclusion,
hiring and educating human resources19Overview of 2022 Medium-term Plan

Basic policies of medium-term management plan
Team NLM—Groundbreaking Innovator of Aluminumand Beyond
1. Provide products and businesses that contribute to the creation of social value Provide products and businesses that satisfy customers’ needs
 Provide a range of products and businesses throughout the overall supply chain
lifecycle
 Strengthen the Group collaboration system to solve social issues

2. Strengthen management foundation
 Thorough quality compliance (restoring social trust) Top priority on safety and thorough compliance Response to carbon neutrality
 HR expansion, appointments and education to improve sustainable corporate value

20

Overview of 2022 Medium-term Plan

Eco-friendly automotive part business (Results of previous medium-term plan)
Material from Analysts’ Meeting on November 14, 2019
Progress toward 2019 Medium-term Plan

Creation of New Products/Growth Investment

Delivering the greatest value by streamlining
materials, design & processing
Total solutions
Nippon Light Metal Group’s eco-friendly automotive heat device
business

Aluminum material technology<Materials taking advantage ofcharacteristics>

Importance of linkage
Material from Analysts’ Meeting on November 16, 2021

Heat analysis technology<Optimal design>Countermeasures against heat frommaterials to processing
Fin forming technology

Extrusion
Technical expertise
accumulated over many years

Micro-finprocessing
Microscopic fins at a low cost

Bonding technology
Pipeembedding

Variousbonding

Application of FSW technology

Brazing and solid-phase bonding

Motor control power device
cooling
Battery cooling plate

21

Overview of 2022 Medium-term Plan

Further reinforce eco-friendly auto parts business

Link to “customer value”
Accumulation of strengths of Team NLM

Design∞Materials
×Construction
method andprocessing

Qualityfunction(evaluation)×
Speed(streamlining )∞∞Customer value,needs

Aim to double 2021 results in eco-friendly auto parts business22

Overview of 2022 Medium-term Plan

Expansion of sales in global markets
Further promotion of “local manufacturing and local
consumption” worldwide
Regional F24 growth image (F21 comparison)

Nikkei MC Aluminum
Reinforce capacity of secondary alloys
for auto body structural materials(2022 plan)

China: Automobiles
Nikkeikin Aluminium Core Technology
Start of mass production of battery
cooling plates (2020)+6%

India: Food and health

US: Automobiles

+73%

China

US

Toyo Aluminium
Foil processing business for pharmaceuticalpackaging was made a subsidiary (2021)

+183%
India
ASEAN
India: Automobiles
Nikkei MC Aluminium
Reinforced capacity of second plant forsecondary alloys (membership company) (2019)
New company (consolidated) established (2019)
Start of mass production (2022 plan)+35%

US: Automobiles
Nippon Light Metal Georgia, Inc.
Company established for forging ofundercarriage parts (2019)
Start of mass production (2022 plan)2019 Medium-Term Plan Investment

23

Overview of 2022 Medium-term Plan

Trilateral system built around Japan, China and US: Global supply operations

Third piece of Japan, China and US system: Full-fledged
entry into US

Auto undercarriage parts

Shearing machine• Name: Nippon Light Metal Georgia, Inc. （Abbreviation:
NLMGA）• Location: Adairsville, Georgia, US• Capital: USD 16.0 million• Shareholders: Nippon Light Metal North America, Inc. (NLMNA)
90%, ITOCHU Metals Corporation 10%• Start of production : Planned for September 2022

Forging machine
鍛造機

24

Overview of 2022 Medium-term Plan

Initiatives to achieve carbon neutrality
Contributions to sustainable society: Carbon neutral challenge

TargetRisk (negative factors)
Opportunities(positive factors)



2030

2050

Down 30%
compared to 2013

Zero

 Increased carbon tax burden
 Provide new value by putting into place a circular economy utilizing a
recycle scheme to the maximum extent (creation of eco-friendly products)

In light of recommendations from the Task Force on Climate-Related Financial Disclosures(TCFD), we will disclose information on risks and opportunities.

25

Overview of 2022 Medium-term Plan

Circular economy put into action by Team NLM
Nikkeikin AluminumCore Technology

Nikkei MC Aluminum

Riken Light Metal
Industry

Nikkei Panel System

Nippon Light Metal

Products

Recycling

Nikkei Engineering

Recycling carriedout by Team NLM
Materials, construction
methods, processing
Nikkei Matsuo

Nikkeikin AluminumCore Technology

Nippon Light Metal

26

Overview of 2022 Medium-term Plan

Basic policies of medium-term management plan
Team NLM—Groundbreaking Innovator of Aluminumand Beyond
1. Provide products and businesses that contribute to the creation of social value Provide products and businesses that satisfy customers’ needs
 Provide a range of products and businesses throughout the overall supply chain
lifecycle
 Strengthen the Group collaboration system to solve social issues

2. Strengthen management foundation
 Thorough quality compliance (restoring social trust) Top priority on safety and thorough compliance Response to carbon neutrality
 HR expansion, appointments and education to improve sustainable corporate value

27

Overview of 2022 Medium-term Plan

Strengthen management foundation: Thorough quality complianceIndependently and thoroughlyRebuild a quality assurance systemReform organizational culture
Without waiting for the findings from the Special Investigation Committee,
we will independently and thoroughly review the quality assurance system
and reform the organizational climate.
28

Overview of 2022 Medium-term Plan

Strengthen management foundation
Top priority on
safety and thoroughcompliance Zero accidents
Eradicate getting caught/
being entangled accidents
 Response to fraud
prevention
Expansion to areas
beyond quality
Reinforce IT controls on
accounting

Operational reform
and workstylereform through DX
 Improve operations
Raise productivity
Disaster prevention(Energy conservation,
automation)
 Greater efficiency foradministrative work
Reduce routine
operations

HR expansion,
appointments andeducation
 Utilization of diverse
staff Train and hire digital
human resources29Overview of 2022 Medium-term Plan

Investments for further growth and strengthening of management foundation

Aggressive investment aimed atsustainable growth
2019 Medium-term Plan Results(95.9 billion yen)2016 Medium-term Plan Results(86.5 billion yen)
R&D expenses:

2022 Medium-term Plan
(111.0 billion yen)

R&D expenses: 20.0 bn yen
R&D expenses:

18.2 bn yen

Capital investment

15.6 bn yen

Capital investment
Capital investment

New products, expanded sales:
11.3 bn yen

Energy conservation and safety:
17.3 bn yen

Maintenance and updates:
42.3 bn yen

New products, expanded sales:23.4 bn yen

New products, expanded
sales:
29.0 bn yen

Energy conservation and safety:
25.2 bn yen

Energy conservation andsafety:32.0 bn yen

Maintenance and updates:
29.1 bn yen

Maintenance and updates:
30.0 bn yen
30Overview of 2022 Medium-term Plan

Policy on shareholder returns

Ongoing and stable shareholder returns
Basic policy on profit distribution
Return profits to all shareholders, comprehensively taking into account themaintenance of consolidated earnings and a sound financial foundation forthe medium to long term, while also reinforcing the financial system andmanagement foundation.
Indicators for profit distribution

Total dividend payout ratio of 30% as standard• Steady implementation of shareholder returns• Plans for aggressive investment to achieve sustainable growth• Choose methods by comprehensively considering cash position, shareholders’ equity rate and other31

Overview of 2022 Medium-term Plan

Financial indicators(Billions of yen)

Fiscal 2021
Results

Fiscal 2022
Forecasts

Fiscal 2024
References*

Operatingprofit22.2

20.0Over 30.0

Dividends
per share

85 yen85 yen

100 yen*These figures indicate the Company’s approximations at this point and are not targets that the Company aims to meet.

32

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