Financial results for the first half ofthe fiscal year ending March 31, 2023,
full-year earnings forecasts,
and progress with medium-term
management plan
November 15, 2022
Nippon Light Metal Holdings Company, Ltd.

Table of Contents
1. Financial results for the first half of the fiscal
year ending March 31, 2023
2. Forecast of consolidated financial results forthe fiscal year ending March 31, 2023
3. Progress with medium-term managementplan

2Financial results for the first half of the fiscal year ending March 31, 2023

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

(Billions of yen)

Net sales

April–September
2022
Results

April–September
2021
Results

253.1

236.0

+17.1

-10.3

Operating profit

3.7

14.0

Ordinary profit

5.2

14.2

Profit attributable toowners of parent

Interim ｄividends
per share

Change(+7.2%)(-74.0%)-9.0(-63.4%)

-7.0

3.8

10.8

(-64.8%)40 yen40 yen±0
3

Financial results for the first half of the fiscal year ending March 31, 2023

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

April–September
2021 Results-9.0 billion yen
-4.2

+5.3

-7.7

-2.3
5.2

Other

Purchased
products

Sales priceNew products-0.1

Sales volume

14.2

April–September
2022 Results

4

Financial results for the first half of the fiscal year ending March 31, 2023

Segment information – compared with the same period in previous fiscal year
Net sales
April–September April–September
2022
2021
Results
Results

Aluminum ingot
and chemicals

79.1

60.1

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

55.5

58.0

68.8

74.6

49.7

43.3

-

-

Total

253.1

236.0

(Billions of yen)

Operating profit
ChangeApril–September April–September
2022
2021
Results
Results

Change

+19.0

6.2

7.5

-2.5

0.４

4.7

-5.8

-1.8

2.1

-3.9

+6.4

(+14.8%)

0.6

1.4

-0.８

(-62.1%)

-

-1.7

-1.7

±０

+17.1

3.7

14.0

-10.3

(+31.6%)(-4.4%)(-7.8%)(+7.2%)-1.3(-16.9%)-4.3(-91.2%)(-)(-74.0%)5

Table of Contents
1. Financial results for the first half of the fiscal year
ending March 31, 2023
2. Forecast of consolidated financial results for the
fiscal year ending March 31, 2023
3. Progress with medium-term management plan6

Forecast of consolidated financial results for the fiscal year ending March 31, 2023

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

Fiscal 2022
Forecasts(Oct. 31)

Fiscal 2021
Results

Change+28.4

Net sales

515.0

486.6

Operating profit

12.5

22.2

Ordinary profit

15.0

22.9

Profit attributable toowners of parent

10.0

16.8

(-40.3%)85 yen (*)

85 yen±0

Dividends per share(＋5.8%)-9.7(-43.7%)-7.9(-34.6%)-6.8*Interim dividend: 40 yen/share; year-end forecast: 45 yen/share7Forecast of consolidated financial results for the fiscal year ending March 31, 2023

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

Fiscal 2021
Results＋115-7.9 billion yen
+11.5
-15.7
-3.3

(as of Oct. 31)(Billions of yen)

-2.4

15.0

Other

Purchased
products

Sales priceNew products+2.0

Sales volume

22.9

Fiscal 2022
Forecasts

8Forecast of consolidated financial results for the fiscal year ending March 31, 2023

Segment information – compared with the previous fiscal year

(Billions of yen)

Net sales
Fiscal 2022
Forecasts (Oct. 31)

Fiscal 2021
Results

Operating profit
ChangeFiscal 2022
Forecasts (Oct. 31)

Fiscal 2021
Results

Change

+32.4

12.0

13.0

-7.9

1.0

7.5

-4.4

1.0

3.8

+8.3

(+9.1%)

2.5

1.6(+59.2%)

-

-

-4.0

-3.7

-0.3

486.6

+28.4

12.5

22.2

-9.7

Aluminum ingot
and chemicals

160.0

127.6

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

106.0

113.9

149.0

153.4

100.0

91.7

-

Total

515.0

(+25.4%)(-6.9%)(-2.9%)(+5.8%)-1.0(-7.8%)-6.5(-86.7%)-2.8(-73.5%)+0.9(-43.7%)9

Forecast of consolidated financial results for the fiscal year ending March 31, 2023

Aluminum ingot and chemicals
Alumina and chemicals

Net sales Operating profit
Net sales(Billions of yen)

Operating profit(Billions of yen)

175.0
150.0

160.0
127.6

100.0

17.5
15.0

125.0
13.0

20.0

12.0

75.0

12.5
10.0

Nikkei MC Aluminium Sales:

The impact of the decrease in auto production will hit bottom andsales will gradually recover, but the timing of a full-scale recovery is
not clear, and trends must be monitored.
 Profitability: We are concerned about higher costs due to fuel prices.

7.5

7.5

5.0

50.0

5.0

25.0

2.5

0.0

 Aluminum hydroxide： Despite the ongoing firmness of sales and revisions to sales
prices, the spike in the price of aluminum hydroxide, a raw
material, will have a major impact.

Sales volume for Nikkei MC Aluminium (1,000 tons)
H1 FY22

2.5
0.0

1

2

0.0

Japan
Overseas
Total

H2 FY22

Total for FY22

Results

Previousyear

ChangeForecast

Previousyear

ChangeForecast

Previousyear

Change

65.1
69.7
134.8

67.5
68.1
135.6

-4%
+2%
-1%

76.4
76.2
152.6

65.0
70.0
135.0

+18%
+9%
+13%

141.5
145.9
287.4

132.5
138.1
270.6

+7%
+6%
+6%

10

Forecast of consolidated financial results for the fiscal year ending March 31, 2023

Aluminum sheet and extrusions
Sheet

Net sales Operating profit
Net sales(Billions of yen)

125.0

Operating profit(Billions of yen)

113.9

106.0 10.0
10.0

100.0
75.0

7.5

7.5

5.0
2.5

25.0
1.0
1

H1 FY22H2 FY22

Results

Previousyear

Change

32.0

35.3

-9%

Forecast Previous
year

33.4

37.5

Total for FY22
Change-11%

Forecast Previous
year

65.4

72.8

Change-10%

Nikkeikin Aluminium Core Technology Company

50.0

0.0

 Sales: Forecasts factor in the ongoing impact of adjustment to demand forthick sheets for semiconductor manufacturing equipment during this fiscal year.
Sales volume for Rolled Products Division (1,000 tons)

2

 Auto-related: Despite impact of shortage of semiconductor supply, it is gradually
recovering.
 Truck body-related: Truck manufacturers’ decreased production of chassis will continue
to have an impact.
Sales volume for Nikkeikin Aluminium Core Technology (1,000 tons)
H1 FY220.0

H2 FY22

Results

Previousyear

Change

16.2

18.6

-13%

Forecast Previous
year

18.1

17.5

Total for FY22
Change+3%

Forecast Previous
year

34.3

36.1

Change-5%11Forecast of consolidated financial results for the fiscal year ending March 31, 2023

Fabricated products and others
Nippon Fruehauf

Net sales Operating profit
Net sales(Billions of yen)

175.0

Operating profit(Billions of yen)

153.4

150.0

149.0
5.0

125.0
100.0
75.0

2.5

50.0

0.0

1.0
1

Although the impact of a shortage of semiconductors andother will hit bottom, and sales continue to fall due to asluggish recovery in the truck chassis supply, we will bewatching for the timing of a recovery.
 Profitability: Aluminum and steel material prices are rising and the effect ofsales price revisions will be slow to take effect.
Nikkei Panel System

3.8

25.0

 Sales:20.0

 Refrigerator and freezer sector:
Facility investment and demand for distribution centers forfrozen foods and e-commerce, among others, will be solid.
 Clean rooms: Demand for industrial clean rooms for semiconductor
manufacturing equipment manufacturers and electronicmaterials manufacturers will be strong, and we expect sales to
exceed levels in the previous fiscal year.
 Profitability: We are concerned about a spike in steel sheet steel prices.

12Forecast of consolidated financial results for the fiscal year ending March 31, 2023

Aluminum foil, powder, and paste
Toyo Aluminium

Net sales Operating profit
Net sales(Billions of yen)

100.0

91.7

100.0

Operating profit(Billions of yen)

4.0

80.0
3.0
60.0
40.0

2.5
1.6

1.0

20.0
0.0

1

2.0

2

0.0

<Aluminum foil business>
 Outer package of lithium-ion batteries:
Decrease in sales for auto manufacturing will reach its lowest point,
but we are monitoring the timing of the recovery.
<Powder and paste business>
 Powder products:
Sales of products for heat dissipation will decline due to corrections
to demand in the semiconductor market.
 Paste products:
We expect sales to overseas customers, which were solid in H1, todecline on the impact of inventory adjustments.
<Daily necessities business> Profitability:
Although revenue will improve due to price revisions, we expect
costs to rise on a spike in material costs, which were partly affectedby the weak yen.

13

Table of Contents
1. Financial results for the first half of the fiscal
year ending March 31, 2023
2. Forecast of consolidated financial results forthe fiscal year ending March 31, 2023
3. Progress with 2022 medium-term plan14

Progress with 2022 medium-term plan

Basic policies of 2022 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

15

Progress with 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 resources16

Progress with 2022 medium-term plan

Provide products and businesses that contribute to the creation of social value

Toward further growth in the NLM Group’s auto business
Demonstrating multi-faceted problem-solving ability
Heat

LightweightLightweight

Interior and exterior
finishing materials

Batteries

Electronic
components
Undercarriageparts
BrakesLightweight

Heat

Air
conditioning

Heat
17

Progress with 2022 medium-term plan

Provide products and businesses that contribute to the creation of social value

Reinforce eco-friendly car parts businessOne-stop service from materials to assembly,
tailored to customers’ requests
Heat

being mass produced,
Cooling components Currently
with new orders increasing
for power devices

Customers: Automobile parts
manufacturers in Japan

Electronic
components
Batteries

Heat

Coolingcomponents for In mass production
batteries

Customers: Car manufacturers inJapan and overseas

Strongstructural
materials

LIB module frame In mass production

Customers: Car and battery manufacturers
in JapanBattery manufacturers overseas

18

Progress with 2022 medium-term plan

Provide products and businesses that contribute to the creation of social value

Reinforce global products to respond to more stringent environmental
regulations around the world
Undercarriage parts

Thermal solution parts

Nikkeikin Aluminium Core Technology Company, Ltd., Nippon Light
Nikkeikin Aluminium Core Technology Company, Ltd.
Metal (Industrial parts, heat exchangers), Nikkei MC Aluminum Co., Ltd.

Expand market creation by
establishing a device cooling business

Heat dissipation plates for power
control units

Battery cooling plate

Expand needs for lightweightparts to improve fuel economy
performance

Suspension

Expand business opportunities by building
a trilateral global system

19Progress with 2022 medium-term plan

Provide products and businesses that contribute to the creation of social value

Expansion of sales in global markets
FY24 growth image by region (compared to FY21)
US:

China:

Nikkeikin Aluminum Core Technology: Extruded products
Battery cooling plates (start of mass production in 2020)
Production declined at one point due to COVID-19, but isrecovering

Nikkei MC Aluminum: Secondary alloys
For auto body structural materials
Reinforcement of production capacity in 2022

+６%

China
+183%
India
India:

+73%

+35%

US

ASEAN
US:

Nikkei MC Aluminum: Secondary alloys
Third base, new company (consolidated subsidiary)established (2019)
Start of operations at new plant: Changed to 2024

Nippon Light Metal Georgia, Inc.:
Extruded products
Forged undercarriage parts
Operations planned to start in December 2022

Steadily acquiring markets, primarily by capturing auto demand20

Progress with 2022 medium-term plan

Provide products and businesses that contribute to the creation of social value

Reinforcement of semiconductor production capacity in Japan supported by panels

Domestic production capacity for CFC-free thermal
insulated, incombustible panels increased
Nikkei Panel System 10% increase in production of incombustible (poluisocyanurate form) panels
Primarily for use with semiconductor factory clean rooms

GENESTA Incombustible:
CFC-free thermal
insulated, incombustible
panels• Location: Shimonoseki Plant, Nikkei Panel System Co., Ltd.
• Investment amount: 2.5 billion yen• Start of operations: Fiscal 2024

21

Progress with 2022 medium-term plan

Provide products and businesses that contribute to the creation of social value

Working to achieve carbon neutral goal
Horizontal recycling in tandem with customers
Nikkeikin Aluminium Core Technology Company, Ltd.
We worked together with JR Central, Nippon Sharyo, Ltd., Hitachi, Ltd. and others
on horizontal recycling of aluminum from Shinkansen structures to Shinkansen
structures, reducing CO2 emissions by about 50 tons per Shinkansen unit.
Image of current horizontal recycling process for aluminum（Cross-section image ofvehicle structure)

Used in N700S
vehicle structure(roof)

Shinkansen
car that has
been
scrapped(Image)Aluminum scrap

BilletExtruded shapes

Vehicleoperation

Vehiclemanufacturing(Image)Extrusion procession(Nikkeikin Aluminium
Core Technology)

Vehicledisassembly

Aluminum sorting

Vehicle structure22

Progress with 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 resources23

Progress with 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 thequality assurance system and reform the organizational climate.
24

Progress with 2022 medium-term plan

Strengthen management foundation

Responding to social issues by using DX

Lack of workers due to decrease in working population
Promote diversity & inclusion
Passing on knowledge and skills

Introduction
example of ourgroup

Introducing and establishing DX technology
Digitization, greater efficiency, common
standards, systematization, optimization

SafetyDetection of entry into dangerous areas

Quality

Inspection process, audio input

EfficiencyStock taking operations, audio input

VR safety education (experience, accident recreation)
Visual examination, image recognition
Automatic ordering system for raw materials
Visualization of product storage tankInspection manual

Balancing sustainable business growth andthe happiness of employees

25Basic Integration Agreement for transfer of shares of
Toyo Aluminium finalized

Significance for Group Focus on optimal allocation of Group’s
management resources Reinforce international competitiveness byreorganizing Japan’s aluminum foil industry
Schedule:
Finalization of Basic Integration Agreement:
August 31, 2022
Date for execution of share transfer:
March 31, 2023 (planned)* The Management Integration is subject to theapproval and permission, etc., of relevant domestic
and overseas authorities including the Japan Fair
Trade Commission.

Aspiring to sound and ongoing growth bybuilding a business structure that is highly
resilient to changes in the external environment
26

Progress with 2022 medium-term plan

Financial indicators

OperatingprofitDividends per
share

Fiscal 2021
Results

Fiscal 2022
Forecasts（Oct. 31）

Fiscal 2024
References*22.2 billion
yen

12.5 billion
yenOver 30.0
billion yen

85 yen85 yen

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

We plan to release our future plans, based on changes
to the business structure, in March 2023.
27

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Supplemental materials

Financial results for the first half of the fiscal year ending March 31, 2023

Trends in overall demand for aluminum products in Japan（1,000 tons)
400
350

315

300

316

312

299

266

250
200
150
100
50
0

1

4

7

10

13

16

19

22

25

28

Source: Japan Aluminum Association30

Forecast of consolidated financial results for the fiscal year ending March 31, 2023

Elements and sensitivity
Fiscal2022
Forecasts(May 16)

Aluminum
ingot

390

Fiscal2021
Results

Sensitivity to ordinary
profit378

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

113

Assuming 10 yen
appreciation-0.5 billion yen/year

78

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

Exchange
rates

115

(JPY/USD)

Dubai crude(USD/BBL)

85

31

Financial results for the first half of the fiscal year ending March 31, 2023

Ordinary profit(Billions of yen)

AprilSeptember
2022
Results

Ordinary profit

5.2

AprilInitial
Septemberforecasts for
Y-o-Y change
2021
April-Sep
Results
2022

14.2

-9.0

5.0

Compared
to initial
forecast+0.2

Breakdown of 9.0 billion yen y-o-y decrease
Operating profit-10.3
Foreign exchange gain or loss
+1.5
Other
-0.2

32

Financial results for the first half of the fiscal year ending March 31, 2023

Profit attributable to owners of parent(Billions of yen)

AprilSeptember
2022
Results
Profitattributable toowners of parent

3.8

AprilInitial
Compared
Septemberforecasts for
Y-o-Y change
to initial
2021
April-Sep
forecast
Results
2022

10.8

-7.0

3.0

+0.8

Breakdown of 7.0 billion yen y-o-y decrease

-9.0
-1.5
+1.9
Profit attributable to non-controlling interests +1.6

Ordinary profit
Extraordinary profit
Tax costs

33

Financial results for the first half of fiscal year ending March 31, 2023

Financial results of key companies – YoY change(Billions of yen)
April-September 2022 results

April-September 2021 results

Net sales

OperatingprofitOrdinary
profitNet sales

OperatingprofitOrdinary
profitNippon Light Metal(Parent)

78.4

3.3

7.6

64.9

4.4

7.6

Toyo Aluminium(Consolidated)

49.9

0.1

1.0

43.5

1.4

1.8

Nikkei MC Aluminium(Consolidated)

52.9

1.3

1.5

38.0

1.7

1.8

Nippon Fruehauf(Consolidated)

25.6

-2.2

-2.2

32.4

0.2

0.2

Nikkeikin Aluminium CoreTechnology (Consolidated)

26.4

-0.7

-0.4

27.0

1.9

2.0
34

Financial results for the first half of the fiscal year ending March 31, 2023

Capital investment and amortization expenses – YoY change(Billions of yen)

Capital investment

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

Depreciation

AprilAprilAprilAprilSeptember September
September September
Difference
Difference
2022
2021
2022
2021
Results
Results
Results
Results

1.4

1.5

-0.1

2.2

2.1

+0.1

2.6

4.5

-1.9

2.5

3.0

-0.5

2.2

2.3

-0.1

2.6

2.6

±0

1.6

2.5

-0.9

2.3

2.1

+0.2

7.8

10.8

-3.0

9.6

9.8

-0.2
35

Forecast of consolidated financial results for the fiscal year ending March 31, 2023

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

Forecasts for fiscal 2022 (Oct. 31)
Net sales

OperatingprofitNippon Light Metal(Parent)

159.7

Toyo Aluminium(Consolidated)

Ordinary
profitResults for Fiscal 2021
Net sales

OperatingprofitOrdinary
profit4.0

8.2 137.6

6.5

10.0

100.9

1.6

2.7

92.0

1.5

2.3

Nikkei MC Aluminium(Consolidated)

106.6

2.5

2.9

84.2

3.9

4.3

Nippon Fruehauf Company(Consolidated)

53.3

-3.9

-3.9

60.4

-1.6

-1.5

Nikkeikin Aluminium CoreTechnology (Consolidated)

53.6

-0.4

0.1

52.8

2.6

2.7
36

Forecast of consolidated financial results for the fiscal year ending March 31, 2023

Capital investment and amortization expenses – YoY change(Billions of yen)

Capital investment

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

Depreciation

Forecasts
Forecasts
ResultsforResults forfor fiscal
for fiscal
Fiscal Difference
Fiscal Difference
2022
2022
2021
2021
(Oct. 31)
(Oct. 31)

6.1

5.3

+0.8

4.8

4.4

+0.4

4.4

8.3

-3.9

5.1

5.8

-0.7

4.9

5.5

-0.6

5.2

5.2

±0

4.1

4.1

±0

4.8

4.7

+0.1

19.5

23.2

-3.7

19.9

20.1

-0.2
37

Forecast of consolidated financial results for the fiscal year ending March 31, 2023

Dividends per share(yen) Forecasts released on May 16, 2022 are left unchanged
10
9.0
9.0
系列2
85
9
8.0
8.0
8
系列1
7
6

5.0

5
4
3
2

6.0

系列3

5.0

5.0

85

65

70
45

45

4.0

1

2

60
50
40

3.0
3.0

90
80

4.0

5.0

65

6.0
3.0

1
0

4.0

5.0

(yen)
100

3

4

5

4.0

4.0

4.0

30
40

40

20
10

6

7

8

9

10

11

0

(Forecast)

The Company carried out a share consolidation at a ratio of 1 share for every 10 shares of common stock on October 1, 2020.

38

Notes on this document
1. This document is intended to provide information on the financial results for the fiscal year ending March 31, 2023, and future management strategies, and not to solicit the purchase or sale ofthe marketable securities issued by the Company.
2. The forward-looking statements, including future trends and earnings estimates, are not historical facts and involve risks and uncertainties, and therefore do not guarantee future performance.
Actual financial results may differ materially from the estimates due to various factors, including unpredictable changes in economic conditions. Significant factors that may affect actual
financial results include but are not limited to the economic climate surrounding the Group, social trends, and changes in the Group’s relative competitiveness in line with the demand trends forthe products and services provided by the Group.
3. The matters described in this document reflect the views of the Company at the time of its preparation and are subject to change without prior notice.
4. The Company shall assume no responsibility for any damage resulting from the use of this document.