Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2023
(Japan GAAP)
August 1, 2022
Company name:

Nippon Light Metal Holdings Company, Ltd.

Stock exchange listing:Tokyo

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
OfficeSubmission of quarterly financial results:

August 1, 2022

Expected date of dividends payment:―

Preparation of supplementary materials for quarterly
financial results:
Holding of a briefing on quarterly financial results:

Yes
Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for Three Months Ended June 30, 2022
(1) Consolidated Results of Operations (Accumulated Total)
Net sales

Operating profit(% figures show year-on-year change)
Profit attributable
Ordinary profit
to owners of parent
Millions ofMillions of
%
%
yen
yen

Millions ofyen%Millions ofyen%June 30, 2022

123,241

6.5

3,437

(53.8)

4,142(45.3)

2,614(45.9)

June 30, 2021

115,689

21.0

7,435

195.7

7,574

218.2

4,832

279.0

Three months ended(Note)

Comprehensive income:Three months ended June 30, 2022

¥4,808 million / (16.5)%

Three months ended June 30, 2021

¥5,758 million / 211.4%

Net profit per share(basic)Yen

Net profit per share(diluted)
Yen

June 30, 2022

42.23

－

June 30, 2021

78.08

－

Three months ended(2) Consolidated Financial Position

As of June 30, 2022

Total assets

Net assets

Millions of yen

Millions of yen%

534,697

222,31338.3

532,601

220,907

38.1

As of March 31, 2022
(Reference) Shareholders’ equity:

As of June 30, 2022
As of March 31, 2022

-1-

Equity ratio¥204,587 million¥203,089 million

2. Dividends
Annual dividends per share
End of firstquarter
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
Fiscal year ending
March 31, 2023
(forecasts)

Yen

End of second
quarterYen―

End of third
quarterYear-end

Total

Yen

Yen

Yen

40.00

―

45.00

85.00

40.00

―

45.00

85.00

―

(Note) Revisions to dividend forecasts published most recently:None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023
(April 1, 2022－March 31, 2023)(% figures show year-on-year change)
ProfitNet profit
Operating profit
Ordinary profit
Net sales
attributable toper shareowners of parent
Millions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yenSix months ending
260,000
10.1
5,500 (60.8)
5,000 (64.8)
3,000(72.3)
48.47
September 30, 2022
Fiscal year ending
540,000
11.0
20,000(9.9)
20,000 (12.8)
14,000(16.5)
226.18March 31, 2023
(Note) Revisions to Forecast of Financial Results published most recently:

-2-

None

*Notes(1) Change in significant subsidiaries during the period(Changes in specified subsidiaries affecting the scope of consolidation): None
Newly added: ― (Company name: ― )Excluded: ― (Company name: ― )(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statements:
None(3) 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(Note) For details, please refer to “2. Notes on summary information (special notes) (3) Changes in accounting
policies, changes in accounting estimates, and restatements” on p. 4 of the attached documents.
(4) Number of shares outstanding (common stock)(i) Number of shares outstanding at end of period (including treasury stock)
As of June 30, 2022
61,993,750 shares
As of March 31, 2022
61,993,750 shares(ii) Number of treasury stock at end of period
As of June 30, 2022
97,627 shares
As of March 31, 2022
98,476 shares(iii) Average number of shares outstanding during the term
For the three months ended June 30, 2022
61,896,338 shares
For the three months ended June 30, 2021
61,886,655 shares* Quarterly 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 results 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 for the premise of earnings forecasts and the precautions
when using the forecasts, please refer to “1. Qualitative Information on Quarterly Results (3) Explanation of
forward-looking information, including consolidated earnings forecasts” on p. 4 of the attached documents.

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[Attached documents]
Index

Page

1. Qualitative Information on Quarterly Results ......................................................................................................2(1) Explanation of consolidated operating results position .................................................................................2(2) Explanation of consolidated financial position ..............................................................................................3(3) Explanation of forward-looking information, including consolidated earnings forecasts .............................4
2. Notes on Summary Information (Special Notes) .................................................................................................4(1) Change in significant subsidiaries during the period .......................................................................................4(2) Application of accounting method specific to preparation of quarterly consolidated financial statement.......4(3) Changes in accounting policies, changes in accounting estimates, and restatements ......................................4
3. Quarterly Consolidated Financial Statements and Important Notes .....................................................................5(1) Quarterly consolidated balance sheets .............................................................................................................5(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income ..........7
Quarterly Consolidated Statements of Income(April 1, 2022 – June 30, 2022) ....................................................................................................................7
Quarterly Consolidated Statements of Comprehensive Income(April 1, 2022 – June 30, 2022) ....................................................................................................................8(3) Notes regarding the quarterly consolidated financial statements ....................................................................9(Notes on premise of going concern) ............................................................................................................9(Notes on significant fluctuations in value of shareholders’ equity, if any)..................................................9(Segment information, etc.) ..........................................................................................................................9

-4-

1.

Qualitative Information on Quarterly Results(1) Explanation of consolidated operating results position
During the first three months of the current consolidated fiscal year, we have seen recovery in global economic
activities as the world makes progress in the fight against the COVID-19 pandemic and restrictions on activities are
eased. However, we still face uncertainties about the future, due to the soaring raw material and fuel prices,automobile production cuts due to shortages of semiconductors and other components and lockdowns in China, as
well as the prolonged Ukraine crisis and rapid fluctuations in exchange rates.
Despite the significant impact of continued production cutbacks in automobile and truck chassis, the Group's net
sales increased year on year due to solid demand in the semiconductor-related and panel system divisions, as well as
higher sales prices reflecting the situation of the aluminum ingot market and price revisions applied in response to
the surging raw material and fuel prices. However, from a profitability standpoint, the operating profit, ordinary
profit, and profit attributable to owners of parent decreased year on year due to lower sales volumes in theautomobile and truck bodies business, as well as higher costs resulting from the soaring raw material and fuelprices.
During the first three months of the Group’s consolidated fiscal year, the net sales rose by 7,552 million yen (6.5%)
year on year, from 115,689 million yen to 123,241 million yen. The operating profit decreased by 3,998 million yen(53.8%) year on year, from 7,435 million yen to 3,437 million yen. The ordinary profit decreased by 3,432 million
yen (45.3%) year on year, from 7,574 million yen to 4,142 million yen. The profit attributable to owners of parent
decreased by 2,218 million yen (45.9%) year on year, from 4,832 million yen to 2,614 million yen.
An overview of each business segment is provided below.
<Aluminum ingot and chemicals>
In the aluminum chemical division, the sales for mainstay aluminum hydroxide and alumina-related products forceramics and refractories remained solid, and sales were also solid for chemical products such as inorganic chlorinecompounds. As a result, and due to the revisions of sales prices, net sales exceeded the previous fiscal year’s levelbut in terms of profitability, profit decreased year on year affected by the soaring raw material and fuel prices.
The ingot division saw an increase in net sales of the mainstay secondary alloy for automobiles compared to thesame period of the previous fiscal year because the sales price was increased in response to the increase inaluminum ingot price, even though automobile production cutbacks resulted in a decrease in sales in Japan andoverseas on a year-on-year basis. However, the decline in sales significantly impacted the profitability due to theautomobile production cutbacks, resulting in lower profits compared to the same period of the previous fiscal year.
As a result, in the first three months of the current consolidated fiscal year, the net sales of the aluminum ingot andchemicals segment increased by 8,775 million yen (29.2%) year on year, from 30,013 million yen to 38,788 million
yen, but the operating profit decreased by 255 million yen (6.3%) year on year, from 4,019 million yen to 3,764
million yen.
<Aluminum sheet and extrusions>
As for the aluminum sheet division, the demand for thick sheets for semiconductor manufacturing equipment hasremained strong since the previous year, and sales prices were increased in response to the situation of thealuminum ingot market, but the net sales and operating profit both fell short of the levels of the same period of theprevious fiscal year because the Chinese subsidiary of Toyo Rikagaku Kenkyusho Co., Ltd. was excluded from thescope of consolidation by transferring the entire equity interest in the subsidiary in the third quarter of the previous
consolidated fiscal year.
The extruded product division saw a year-on-year increase in net sales, partly due to the increase of sales prices in
response to the aluminum ingot market situation, but a decrease in profit because of the significant impact of thecontinued production cutbacks of automobile and truck chassis due to shortages of semiconductors and othercomponents for automobile and truck bodies.
Overall, the net sales in the aluminum sheet and extruded products segment in the first three months of the current-5-consolidated fiscal year increased by 166 million yen (0.6%) year on year, from 27,737 million yen to 27,903 million
yen, but the operating profit fell by 1,376 million yen (53.9%) year on year, from 2,555 million yen to 1,179 million
yen.
<Fabricated products and others>
In the transport-related division, the net sales of the truck bodies business fell short of the level of the same periodof the previous fiscal year due to the ongoing production cuts of truck chassis as a result of shortages ofsemiconductors and other components, supply chain disruptions resulting from the lockdown in China and otherfactors. In terms of profitability, due to a drop in units sold, increase in material prices attributable to a steep rise inaluminum metal price, decline in capacity utilization and other factors, the operating profit fell significantly short ofthe level of the same period of the previous fiscal year.
In the panel system division, the freezing and refrigeration field saw the sales to food factories remain strong due toincreased demand for frozen foods, etc. In the clean room field, the sales for industrial clean rooms were strong,
driven by semiconductor demand, and the sales for pharmaceutical-related clean rooms increased. As a result, thenet sales of the entire division exceeded the level of the same period of the previous fiscal year, and the operating
profit remained similar to the level of the same period of the previous fiscal year despite the impact of soaring raw
material prices on profitability.
Overall, the net sales in the segment of fabricated products and others decreased by 4,049 million yen (11.2%) to
32,241 million yen in the first three months of the current consolidated fiscal year, compared to 36,290 million yen
in the same period of the previous fiscal year. The operating loss amounted to 1,275 million yen, a negative
difference of 1,940 million yen compared to the same period of the previous fiscal year, which saw a profit of 665
million yen.
<Aluminum foil, powder, and paste>
The aluminum foil division saw a decrease in sales of foils for automobile lithium-ion battery exteriors due to theautomobile production cutbacks, but the net sales of the entire division increased year on year because of
consolidation of Svam Packaging Industries Private Ltd., a company that provides aluminum foil for medical
product packaging in India, at the end of the second quarter of the previous consolidated fiscal year, as well as
adjustments to sale prices in response to the increase in aluminum ingot price.
The powder and paste division saw the sales of powder products, such as aluminum powder for electronic materials
for heat dissipation and aluminum nitride, decline due to supply chain disruptions caused by semiconductor
shortages. Although the domestic sales of the mainstay paste products for automobile applications declined due tothe automobile production cutbacks, the overseas sales surpassed the previous fiscal year’s level, resulting in an
increase in division-wide net sales on a year-on-year basis.
In the daily necessities division, the sales of consumer house-care products decreased in reaction to the increase indemand in the previous year, and the sales of aluminum foil decreased due to the price revisions associated with thesoaring raw material prices, but the sales of packaging products for restaurants and frozen foods recovered, resulting
in a year-on-year increase in division-wide net sales.
As a result, the net sales of aluminum foil and powder product segments in the first three months of the current
consolidated fiscal year increased by 2,660 million yen (12.3%) year on year, from 21,649 million yen to 24,309
million yen. In terms of profitability, the operating profit decreased by 444 million yen (36.6%) year on year, from1,213 million yen to 769 million yen partly due to the cost increase caused by the soaring raw material and fuel prices.
(2) Explanation of consolidated financial position
Status of assets, liabilities, and net assets
As of the end of the first quarter of the current consolidated fiscal year, the total asset value has increased by 2,096
million yen from the previous fiscal year’s level to 534,697 million yen because the soaring price of ingot anddepreciating yen resulted in an increase in inventories of merchandise and finished goods, etc. The liabilities increased-6-

by 690 million yen compared to the end of the previous consolidated fiscal year to 312,384 million yen as a result of
an increase in short-term borrowings caused by the higher working capital and other factors. The net assets increased
by 1,406 million yen compared to the end of the previous consolidated fiscal year, to 222,313 million yen due to anincrease in foreign currency translation adjustment in response to the depreciating yen and other factors. The equity
ratio rose from 38.1% at the end of the previous consolidated fiscal year to 38.3%.
(3) Explanation of forward-looking information, including consolidated earnings forecasts
With regard to the outlook for the Group’s future performance, there are some uncertainties in Japan and overseas,such as trends in raw material and fuel prices, exchange rate fluctuations, and the Ukraine crisis. Despite these
uncertainties, we have not changed our consolidated earnings forecasts for the second quarter of the current
consolidated fiscal year and the entire consolidated fiscal year announced in the financial results published on May
16, 2022, since we expect that the supply of semiconductors and other components will return to normal, and theautomobile production and truck chassis supply will recover following the recovery from the supply chain
disruptions.
(Note) Earnings forecasts are calculated based on information available at this point and certain assumptions deemed
reasonable, and actual earnings results could differ from forecasts for various reasons.
2. Notes on Summary Information (Special Notes)(1) Change in significant subsidiaries during the periodNone(2) Application of accounting method specific to preparation of quarterly consolidated financial statement
None(3) Changes in accounting policies, changes in accounting estimates, and restatements
Changes in accounting policies(Application of the Application Guidelines for the Accounting Standards for Fair Value Measurement)
The Company has decided to apply the Application Guidelines for the Accounting Standards for Fair Value
Measurement (Application Guidelines for the Company Accounting Standards No. 31; June 17, 2021; hereinafter the“Application Guidelines for the Accounting Standards for Fair Value Measurement”) starting at the beginning of thefirst quarter of the current fiscal year and to apply going forward the new accounting policies as stipulated in the
Application Guidelines for the Accounting Standards for Fair Value Measurement, in accordance with the transitional
treatment prescribed by Article 27-2 of said guidelines. There is no impact of this application on the quarterly
consolidated financial statements.

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

As of June 30,
2022

45,188144,178
39,45021,72928,21818,350(386)
296,727

39,284
141,639
46,434
24,411
31,344
16,393(397)
299,108

59,32247,8685,849
54,904
7,980
175,923

60,08949,282
6,042
55,002
5,662
176,077

2,442
9,948
12,3902,387
10,015
12,402

48,112(551)
47,561
235,874
532,601

47,663(553)
47,110235,589534,697

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
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
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-8-

(Millions of yen)
As of March 31,2022

As of June 30,
2022

72,32478,245
4,264
1,098
34,611
190,542

73,292
84,727371
624
31,834
190,848

734
76,427
18,776
18,253
6,962
121,152
311,694820
77,325
19,051
17,1407,200
121,536
312,384

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

46,525
19,107129,293(130)
194,795

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

2,849
(89)
145
7,678
(791)
9,792
17,726
222,313534,697

Liabilities

Current liabilities
Notes and accounts payable – trade
Short-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 non-current liabilities
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 benefits plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-9-(2) Quarterly Consolidated Statements of Income andQuarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(April 1, 2022 – June 30, 2022)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
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-10-

Three months
ended
June 30, 2021

Three months
ended
June 30, 2022

115,689
91,32624,363
16,928
7,435

123,241
102,698
20,543
17,106
3,437

539
－
662
1,201

424
757
788
1,969

257
805
1,062
7,574
7,574
815
1,438
2,253
5,321
489
4,832

306
958
1,264
4,142
4,142
389
1,146
1,535
2,607
(7)
2,614

Quarterly Consolidated Statements of Comprehensive Income(April 1, 2022 – June 30, 2022)(Millions of yen)Three months
ended
June 30, 2021

Three months
ended
June 30, 2022

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 forusing equity method

5,321

2,607

(55)
24
244
6

31
(276)
2,221
(205)

218

430

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

437
5,758
5,171
587

2,201
4,808
4,284
524

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(3) Notes regarding the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable(Notes on significant fluctuations in value of shareholders’ equity, if any)
Not applicable(Segment information, etc.)
I. First Three Months of the Fiscal Year Ended March 31, 2022 (April 1, 2021, to June 30, 2021)
1. Information on net sales and profit (loss) by reporting segment(Millions of yen)
Reporting segments
Quarterly
Adjust- consolidated
Aluminum Aluminum Fabricated Aluminum
ments*1
profit/loss
ingot andsheet and products and foil, powder,Total
posted*2chemicals extrusions
othersand paste
Net sales
Net sales to external－
30,01327,73736,29021,649115,689
115,689
customers
Intersegment sales－
10,572
5,863
2,805
129
19,369(19,369)or transfers
Total
40,58533,60039,095
21,778135,058(19,369)
115,689
Segment profit
4,019
2,555
665
1,213
8,452
(1,017)
7,435
Notes:*1 The 1,017-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 Segment profit is adjusted with operating profit on the quarterly consolidated statements of income.
2. Information related to impairment loss of non-current assets and goodwill by reporting segment:
Not applicable
II. First Three Months of the Fiscal Year Ending March 31, 2023 (April 1, 2022, to June 30, 2022)
1. Information on net sales and profit (loss) by reporting segment(Millions of yen)
Reporting segments
Quarterly
Adjustconsolidated
Aluminum Aluminum Fabricated Aluminum
ments*1
profit/loss
ingot andsheet and products and foil, powder,Total
posted*2chemicals extrusions
othersand paste
Net sales
Net sales to external－
38,78827,90332,241
24,309123,241
123,241
customers
Intersegment sales－
16,370
6,443
3,501
73
26,387(26,387)
or transfers
Total
55,15834,34635,742
24,382
149,628(26,387)
123,241
Segment profit (loss)
3,764
1,179
(1,275)769
4,437(1,000)3,437
Notes:*1 The 1,000-million-yen negative adjustment to segment profit (loss) 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 Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statements of income.
2. Information related to impairment loss of non-current assets and goodwill by reporting segment:
Not applicable-12-