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In Q1 of this fiscal year, the effects of the semiconductor shortage that has persisted since the year before
last have eased, and production activities were more stable than we had expected at the beginning of theperiod. The Group's net sales increased 10% YoY to JPY49.3 billion, a record high for Q1, due to the recoveryof automobile production and the depreciation of the yen.
Operating income was JPY3.1 billion due to an increase in sales volume. Ordinary income increased by JPY1.3billion to JPY5.2 billion, and net income increased by JPY1 billion to JPY3.9 billion from the previous year, bothrecord highs for Q1, mainly due to foreign exchange gains from yen depreciation.

Net sales increased JPY4.8 billion YoY to JPY49.3 billion, mainly due to an increase in sales volume and thepositive impact of foreign exchange rates resulting from the continued depreciation of the yen, despite thenegative impact of JPY7.2 billion due to the impact of customer-received steel materials for stamping.

Operating income increased JPY1.4 billion YoY to JPY3.1 billion, mainly due to an increase in sales volume andpromotion of cost improvement, despite the negative impact of higher labor and expenses due to increased
sales volume and soaring material prices.

In the stamping and plastic molding business, sales increased 13% YoY to JPY35.3 billion and operating income
increased JPY1.7 billion to JPY2.2 billion due to an increase in sales volume.
In the valve business, volume remained at the same level as the previous year, but sales increased by 4% toJPY13.9 billion due to the impact of the weaker yen. Operating income decreased by JPY0.2 billion to JPY0.9billion due to the impact of soaring material prices.

Sales in Japan increased 3% YoY to JPY16.7 billion, and operating income increased JPY0.7 billion to JPY1.6billion.
Sales in Europe and USA increased 22% to JPY22.5 billion, and operating income rose JPY0.6 billion to JPY0.8billion.
Sales in Asia were JPY9.9 billion, unchanged from the previous year, and operating income decreased JPY0.1
billion to JPY0.5 billion.

Based on the Q1 results and changes in the external environment, including customers' production plans, wehave upwardly revised our full year forecasts.
Compared to the April 27 announcement, sales increased JPY5 billion to JPY190 billion. Operating income isplanned to increase by JPY0.5 billion to JPY10.5 billion. Ordinary income is revised upward by JPY1 billion toJPY14 billion, partly due to foreign exchange effects, and net income is revised upward by JPY0.5 billion toJPY9.5 billion.
The forecasted exchange rate is JPY130 to the US dollar from Q2 onwards. The exchange rate sensitivity isJPY100 million per year per yen.

Full year net sales are expected to increase by JPY19.6 billion due to an increase in sales volume and JPY7.8
billion due to the impact of material quotation prices. However, due to the JPY24.8 billion decrease in sales
due to the impact of customer-received steel materials for stamping, sales are expected to decrease by JPY1.2
billion from JPY191.2 billion in the previous fiscal year to JPY190 billion.
The change in net sales due to the JPY24.8 billion decrease in sales because of the impact of customer-received
steel materials for stamping, the JPY2.3 billion decrease in sales as a result of foreign currency translation,and the JPY7.8 billion increase in sales as a result of material prices will have no impact on profit.

Operating income for the full year is projected at JPY10.5 billion, an increase of JPY4.5 billion due to increased
sales volume and JPY2.7 billion due to cost improvement, despite the negative impact of labor and materialprices.

Net sales for stamping and plastic molding business are expected to remain at the same level as the previous
fiscal year at JPY136 billion, and operating income is expected to increase by JPY2.5 billion to JPY7.5 billion
due to an increase in sales volume. Net sales in the valve business are projected to be JPY53.5 billion,
unchanged from the previous year, due to the assumed exchange rate of JPY130 for Q2 and beyond, andoperating income is projected to decrease by JPY1.2 billion to JPY3 billion, based on the assumption thatmaterial price hikes will continue.

Sales in Japan are expected to decrease 3% YoY to JPY68.5 billion, and operating income is projected todecrease JPY0.2 billion to JPY4.7 billion, despite positive effects from increased sales volume, due to increasedlabor and expenses, soaring material prices for valves, and the start of depreciation related to investment innew plants from H2.
Sales in Europe and USA are projected to increase 2% to JPY80.3 billion due to a recovery in sales volume, andoperating income is projected to increase JPY2.4 billion to JPY2.3 billion.
Effective from the current fiscal year, the amortization period for stamping machines owned by the USA
subsidiary has been revised from 7 years to 15 years. As a result of this change, depreciation and amortization
expenses are expected to decrease by approximately JPY1.5 billion from the previous level.
In Asia, we forecast net sales of JPY41.2 billion, down 3%, and operating income of JPY2.7 billion, down JPY0.9
billion, assuming a decrease in sales volume in China.

In FY2023, we plan to invest JPY38 billion, including construction of a new stamping plant in the Ogaki areaand preparation for production of electric expansion valves for battery EVs.
In response to an increase in orders from customers, we will increase our production capacity and also invest
in building a more efficient production system to strengthen our competitiveness.

We are promoting initiatives to enhance our corporate value by strengthening our competitiveness in existing
businesses, contributing to solving social issues through new products and sustainability initiatives.
The construction of the new plant is progressing as planned, with the first phase of construction completed
this month. The equipment will be installed in August, and operations will begin in phases. In addition, we willsecure personnel and other measures to prepare for full-scale operations starting in November.
The new plant is being positioned as a global mother plant and is being built to improve productivity throughimproved logistics efficiency and automation, as well as to create a comfortable work environment andintroduce renewable energy. From next year onward, we plan to build a die production plant to strengthen
the competitiveness of our stamping dies and an R&D center to strongly promote the development of newproducts.
e-WAVES Cloud is a data viewing system for a multi-sensing logger "e-WAVES."The new service is released to ensure high security and falsification prevention in line with the requirementsof Part 11 and ER/ES guidelines required by the pharmaceutical industry. We will continue to promote thedevelopment of devices and software that contribute to quality control of storage and transportation
conditions in the food, pharmaceutical, and regenerative medicine fields to meet the needs of our customers.
In addition, we were selected for the ESG index you see in June 2023 in recognition of our ongoing efforts insustainability initiatives and information dissemination.
We will continue our efforts to solve issues facing our customers and society and enhance our corporate value.