Financial Results Briefing
for FY2023
The 100th period：Apr. 1st, 2023- Mar. 31st, 2024

May 8, 2024

1

Contents

１．FY2023 Financial Performance

２．Consolidated Forecast FY2024
３．The Progress of Mid-term

Business Plan “NEXUS-26”
Cautionary Statement with Respect to Forward-Looking Statements
These forward-looking statements are not guarantees of future performance. It involves any risk depending on theJapanese or international economic situation, business trends related to our company, fluctuation of exchange
rates and other factors. It may cause our actual performance to be materially different from any future results
announced.

2/30

1-1 FY2023 Consolidated Financial Summary
Sales volume increased due to steady automobile production, and bothsales and profits reached record highs（100 millions of yen, ％）FY2022
22/Q4
Results

FY2023Full Year
Results

23/Q4
Results

Full Year
Results

513

Record92

32

Record

7.5%

4.9%

6.3%

46

132

44

9.8%

6.9%

8.7%

31

93

Net Income margin

6.5%

4.9%

Average exchange rate（U.S. dollars）¥133.3¥134.9

Sales

478

1,912

Operating Income

36

Operating Income Ratio

Ordinary Income
Ordinary Income Ratio

Net income attributable toowners parent

RecordHigh

Record
High

60
11.8%
¥147.0

YoY rate

High

High

RecordHigh

RecordHigh

Q4Full Year

Gain&Loss% Change

Gain&Loss% Change

2,073

+35

＋7.4

+160

＋8.4

144

△3

△10.9

+51

＋55.5

7.0%

△1.2P

－

+2.1P

－

188

△2

+56

＋42.6

9.1%

△1.1P

－

+2.2P

－

169

+29

＋95.7

+76

＋82.5

8.2%

+5.3P

－

+3.3P

－

¥144.2• Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received

¥13.7

△4.3

－

¥9.3

－

steel materials for stamping.

As a result of this, FY2023 results includes a 24.4 billion yen year-on-year decline in net sales. No impact on income.

3/30

1-2 Analysis of Consolidated Results : Sales
Sales reached record highs due to the sales volume increase and theexchange conversion(100 millions of yen)Exchange

Selling

Price

gain

Price

+7

+1

Exchange

Customer-received

Conversion

steel materials

1,912

Material

for stamping

2,073

+74

+83
Sales
Volume△244

FY2022+239

Sales ＋16 Billion yen

FY20234/30

1-3 Analysis of Consolidated Results : Operating Income
Record-high profit due to increase in sales volume and cost improvement
despite increase in production volume and cost increase(100 millions of yen)

Cost
Improvement

92

Sales

Labor

Volume

Cost△24

Expenses△17

Material
Price

Exchange
gain+7

Depreciation

Selling(excl.dies)

Price

+5

+1

144

+30

+64

△15

FY2022

Operating Income + 5.1 billion yen

FY20235/30

1-4 Consolidated Results by Business Segments
Stamping and plastic molding business increased sales and profit;
valve business increased sales but profit remained flat YoY（100 million yen,％）

Sales

Stamping &Plastic Molding(The Impact of increased
customer-received materials forstamping)

FY2022

FY2023ResultResult1,368

Operating Income
YoY Rate

Operating Income Ratio

FY2023

YoY Rate

Gain&Loss%Change

ResultResultGain&Loss%Change

1,499

+131

+9.6

49

103

+54

+108.8(△295)(△244)
3.6%

6.9%

+3.3P

42

41

△1

7.9%

7.2%

△0.7P

*

(△51)

Operating Income Ratio

Valves

FY2022

542

571

+29

+5.4

△3.3

*Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials for stamping.
No impact on income.

6/30

1-5 Consolidated Results by Region
Sales and profits are expected to increase in real terms in Japan, Europe andthe America. In Asia, sales at the same level as the previous year and profit
decline.
（100 millions of yen,％）Operating Income

Sales

Japan
(The Impact of increased customerreceived materials for stamping)

FY2022

FY2023ResultResult

706
(△51)

*

YoY Rate

781

425

Operating Income Ratio

YoY Rate%Change

ResultResultGain&Loss%Change

679

△27

△3.8

49

62

+12

+25.3

(△295)(△244)
7.1%

9.2%

+2.1P

△1

43

+44

△0.2%

4.4%

+4.6P

36

26

△9

8.7%

6.4%

△2.3P

969

+188

+24.2

Operating Income Ratio

Asia

FY2023

Gain&Loss

Operating Income Ratio

Europe & America

FY2022

424

△0

△0.2

-

△26.9

* Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials
for stamping. No impact on income.

7/30

1-6 Consolidated Quarterly Results
Profit declined from Q3 due to increased preparation costs for thestart of new plant operations and amortization burden etc.
(100 millions of yen)

Sales
Sales
increasedue toyen
depreciation

525

Decreasein salesdue to theincreaseofcustomerreceived
materials
forstamping.

478

Recordhigh forQ1 due toincreaseinproduction volume

493

Increase in sales
due to higher sales
volume and yen
depreciation

533

533

Productionlines ofsomecustomers
stoppedSecuredincomedue toimproved
profitability

Profitincreased
due toretroactiveadjustme
nt ofselling
prices

22/Q4

23/Q1

23/Q2

23/Q3

513

23/Q4

Profitdecreasedue to Q4
retroactive
adjustments

Increas
e in
dies
and
molds
profitDecreasein diesandmolds
profit.
Increasein newplant
costs.

Profitdecrease due to
lower
sales
volume

43
37

36

22/Q3

32

31

30

22/Q3

(100 millions of yen)

Operating Income

22/Q4

23/Q1

23/Q2

23/Q3

23/Q4

8/30

Contents

１．FY2023 Financial Performance
２．Consolidated Forecast FY2024
３．The Progress of Mid-term

Business Plan “NEXUS-26”

9/30

2-1

Full Year Forecast FY2024

Expect income decrease due to lower sales volume and higher labor cost,
expenses etc.
（ 100 millions of yen, ％）FY2023Sales

FY2024

YonY rate

Q2 Cumulative

Full YearQ2 Cumulative

Full Year

Results

Results

Forecast

Forecast

Q2 Cumulative

Full Year

Gain&Loss%Change

Gain&Loss%Change

1,026

2,073

980

2,000

△46

△4.5%

△73

△3.5%

Operating Income

74

144

45

110

△29

△40.0%△34△23.9%

Operating Income Ratio

7.3%

7.0%

4.6%

5.5%

△2.7P

－

△1.5P

－

Ordinary Income

103

188

55

130

△48

△46.8%△58△31.0%

Ordinary Income Ratio

10.1%

9.1%

5.6%

6.5%

△4.5P

－

△2.6P

－

75

169

45

100

△30

△40.2%△69△41.1%

Current Net Income *
ＲＯＥ

－

11.2%

－

6.0%

－

－

△5.2P

－

ＲＯＡ(Operating income basis）

－

5.3%

－

3.7%

－

－

△1.6P

－

Net Assets per Share－¥2,840－¥2,895

－

－

+55円

1.9%

¥144.2¥145.0¥145.0－¥0.8

Average exchange rate (US dollars)¥139.9¥5.1－* Current net income is the current net income attributable to the parent company shareholders.
10/30

2-2 Analysis of FY2024 Forecasts: Sales
Sales decreased due to lower sales volume
2,073

Sales

（ 100 millions of yen）

Volume△44

Selling

Revenue

Price

Recognition△21

YoY Difference△13

FY2023

Exchange

Exchange

Conversion

gain
+1

+4

Sales △7.3 billion yen

2,000

FY2024
Forecast
11/30

2-3 Analysis of FY2023 Forecasts : Operating Income
Cost improvement efforts to recover from decrease in sales volume
and cost increase

144

Selling(100 millions of yen)

Price

△21

Sales
Volume

△18

Labor
Cost

△12

Cost

Exchange

Improvement

gain

110

+1
Expenses

Material

△11

Price

+33

△6

FY2023Operating Income △3.4 billion yen

FY2024
Forecast

12/30

2-4 Forecast by Business Segments
Sales and income in stamping and plastic molding business are expected todecrease, while valve business is expected to remain flat YoY .
（100 million yen,％）

Sales

Stamping &Plastic Molding

Operating Income

FY2023

FY2024

YoY Rate

ResultForecast

Gain&Loss

1,499

1,430

△69

FY2023

FY2024%Change

ResultForecast

Gain&Loss%Change

△4.6

103

70

△33

△32.7

6.9%

4.9%

△2.0P

41

40

△1

7.2%

7.1%

△0.1P

Operating Income Ratio

ValvesOperating Income Ratio

571

565

△6

△1.1

YoY Rate

△2.9

13/30

2-5 Forecast by Region
Expect higher sales and lower income in Japan, lower sales and income
in Europe and the America, and lower sales in Asia
（100 million yen,％）

Sales

Japan

Operating Income

FY2023

FY2024

YoY Rate

ResultForecast

Gain&Loss

679

730

+50

FY2023

FY2024%Change

ResultForecast

Gain&Loss%Change

+7.5

62

43

△19

△31.2

9.2%

5.9%

△3.3P

43

32

△11

4.4%

3.5%

△0.9P

26

28

+1

6.4%

7.7%

+1.3P

Operating Income Ratio

Europe & America

969

905

△64

△6.7

Operating Income Ratio

Asia
Operating Income Ratio

424

365

△59

△14.0

YoY Rate

△25.8

+3.9

14/30

2-6

Capital Investments and Depreciation

Investing for future growth
Depreciation

Capital Investment（100 million yen）

315
14
38
229
162
Asia
Europe&America

Japan

18
61

84
'20

181
27

119

'21

300
25

75

23
44

35

146
263
200

163

'22

（100 million yen）

'23

'24

Forecast

23
38

165
26
46

182

179

27

169

29

55

43

22
44
103

85

92

100

107

'20

'21

'22

'23

'24

Forecast

15/30

2-7 Consolidated Balance Sheet
Fixed assets increased due to investments such as the new stamping plant andmarket valuation of cross-share holdings. Cross-share holdings will be sold off
gradually, with a target of 20% or less of net assets.

＜ Main increase/decrease details ＞
AssetsLiabilities

・Property, plant and equipment +170（Investment in plants, etc.）
・Interest-bearing liabilities
・Intangible fixed assets△54 (Impairment of goodwill, etc.)
・Deferred tax liabilities
・Other fixed assets+113（Market value evaluation of held stocks）+7+27

Net Assets
・Net income
・Payment of dividend of surplus/Share buyback
・Other comprehensive income

+169
△39
+155

Selling 15.8 billion yen of cross-shareholdings in FY2023

16/30

2-8 Consolidated Cash Flows
Efficient fund management was implemented by strengthening cash
management within the group.
Free cash flow △6 Billion yen

Free cash flow +15.8 Billion yen

Operating activities +220

Operating activities +353

Deprecition

Other(Incl.

debts

goodwillandIntangible

liabilities

assets)Incomebeforeincome taxes

315

Investing

Deprecition(Incl.

△195

goodwill
Aquisition

IntangibleofNoncurrent
Assets etc.

Financing

Income△46

before444 income taxes

Payment

assets)（100 million yen）

Other

Investing

debts

△280

and
liabilities

AquisitionofNoncurrent
Assets etc.

△80

borrowings Exchange
Conversion
anddividend

Debt
repayment

etc.

Balance

Interestbearing

End of Mar.2022
22年3月末debt

61.2 Billion yen
612億円

balance

Depositdividend

Balancepayments

61.9
Billion yen
619億円

Deposit
BalanceEnd of Mar.2024
24年3月末(予)（Forecast）

End of Mar.2023
23年3月末(+7億円)(+ 0.7
Billion yen)

304

and

etc.

DepositFinancing(▲ (△12億円)
1.2 Billion yen)60.7 Billion
yen
607億円

17/30

2-9 Shareholder Returns
Shareholder returns through share buybacks in addition to special dividends＜Dividend per share＞＜Share buybacks＞- Purpose :Improve shareholder returns andcapital efficiency, implement flexible
capital policy- Amount : max 2 Billion yen,
- No. of shares : max 1,500,000 shares- Method : Market purchase- Period : Apr.26～Sep.30 in 2024
- FYI：1.2 Billion yen/FY2023
1 Billion yen/FY2022
forecast

18/30

Contents

１．FY2023 Financial Performance

２．Consolidated Forecast FY2024
３．The Progress of Mid-term
Business Plan “NEXUS-26”

19/30

3-1 The Progress of Mid-term Business Plan “NEXUS-26”
Promote initiatives to achieve financial and non-financial targets in line with
the NEXUS-26 plan
Financial value
targets

FY2022

FY2023

FY2024FY2026

results

results

forecasts

targets

Sales

191.2 billion

207.3 billion yen

200 billion yen

210 billion yen

yen

Ratio of operating
income to sales

4.9％

7.0％

5.5％

7％ or more

ROE

7.0％

11.2％

6.0％

8％ or more

Non-financial value
targets

FY2022

FY2023

FY2026

results

results

targets

Sales ratio for electrified
vehicles

29.1％

34.1％

50％

No. of new products andservices launched

1 cases

７cases

15 cases from FY2023

Employee engagement-

First survey implementation

48.2％

Positive assessment rate

CO2 emissions(Scope 1 and 2, group,compared to FY2019)18.4％ reduction

20.0％ reduction
Provisional figure

60％
Positive assessment rate

30％ reduction

20/30

3-2 The Progress : Stamping and plastic molding business
Development, sales expansion, and order acquisition are progressing as planned,
and the production system is being established.
Stamping business strategy：- Develop and expand sales of electrified vehicle components for the decarbonized era- Increase orders by strengthening relationships of trust with major customers

Stamping Sales Target

FY2022129

FY2023
results

155 billion yen

CAGR 4.7%Keymeasure（Before the change in revenue
recognition standards）(Billion yen)

34.7

36.0

35.0

118.8

130.4

123.0

120.0

FY2022

FY2023

FY2024FY2026

results

results

forecasts

targets

10.2

Received orders for BEV battery-related parts and started up a new plant- Development of new products for BEVs utilizing ultra-high strength
steel stamping technology

FY2026

Sales of Stamping business- Improvement of profitability due to the effect of the new plant andthe establishment of a new tooling plant- Improvement of order unit price per vehicle by expanding sales ofexisting body shell parts

Plastic Molding business strategy：

Sales after change inrevenue recognition standards
調整後売上高
収益認識基準変更調整額
Impact amount

Sales of Plastic molding business

Promote development of new products for BEVs and expand sales to new customers
Plastic Molding Sales Target

FY202218

FY202625 billion yen

CAGR 8.6%

FY2023
results

Received orders for soundproof covers and decorative wheel parts for BEVs

Key

- Continue to expand sales to new mega Tier 1 and global customers

measure- Increase production capacity to meet demand based on BEV trends(Billion yen)

18.0

19.5

20.0

FY2022

FY2023

FY2024

results

results

forecasts

25.0

FY2026targets

21/30

3-3 The Progress : Valve business
Development and sales expansion underway through collaboration among global
bases; new parts orders received
Growth strategy：

Sales of valve business- Develop and expand sales of products for electrified vehicles- Develop new customers for existing products and strengthen revenue base
Valves Sales Target

FY2022

FY2026

54.2

63 billion yen

CAGR 3.8%

FY2023
resultsKey
measure63.0

Received new orders for electronic expansion valves- Sales expansion to mega tier1 supplier- Establish production system and promote investment
while monitoring demand(Billion yen)

57.6

56.5

FY2022

FY2023

FY2024FY2026

results

results

forecasts

targets

54.2- Secure sales and maintain profitability by expanding sales
to new TPMS customers

New plant built in anticipation of market expansion- Location：On the premises of Kita Ogaki Plant
Godo-cho, Anpachi-gun, Gifu pref.
- Products：Various valve products for electrified vehicles, etc.
- Total floor area：14,900 ㎡ approx.
- Amount invested： 4.5billion yen approx.
- Operation start：Mar. 2025
Image of completed plant

Electric expansion valves

22/30

3-4 The progress：New businessContinuing to take on the challenge of creating new business pillars
Growth strategy：Develop IoT products and systems that contribute tosolving social issues
FY2023

No. of new products andservices launched

FY202615 cases

FY203035 cases(Billion yen)

New business sales

2

0.2

0.2

0.2

FY2022

FY2023

FY2024FY2026

results

results

forecasts

targets

results

7 new products released, e-WAVES variations developedKey- Effective sales expansion activities tailored to product characteristics, such as web marketingmeasure- Continuing to launch new products through in-house resource development and open innovation

FY2023: 1 case

FY2023: 1 case

FY2023: 2 cases

FY2023: 2 cases

FY2023: 1 case23/30

3-5 The progress：New businessContribute to customers' DX promotion and problem solving by combining products andSmart Factory
IoT technology
DX
Variation development
Propose a set of transportation
containers and expand cooperation.

- Expanding Product Lineup from entry, standard
to high-end models- Expanding adoption by pharmaceuticalmanufacturers, food manufacturers,
supermarkets, etc.

New productCollects electricity, gas, air, water, and other usage data to support real-timevisualization and analysis
Sales begin in May 2024

System Overview

Energy ｍeters

Easy connection
to various
metersEdge device

Electricity

Water supply

Gas

Drainage

Air

OthersCollect usage data fromproduction equipment

Real-timevisualization byimporting data

Cloud

Plant map

Graphing the transition

CO2 conversion

CO2 emissions can also be monitored, contributing to environmental load reduction activities. 24/30

3-6 The progress：New business
Challenging to expand our business areas with a focus on businesses that are linked
to solving social issues
New business creation projects
through in-house recruiting

OMEGA PROJECT

Easymeasurementof the expected
number of saliva

Open call for ideas
with the participationof allSoftware

FY20232 ideas that passed the screening
process out of 94 applications are
now under consideration forcommercialization.

FY2024
Continuing to solicit ideas

Agriculture

Software

Healthcare

Throat microphone- Easily measure the number of saliva swallows
Providing services thatCN/
- Easily check oral frailty
solve social issues Environment
Smart factoryDX

Mobility- Easily and inexpensively achieve
paperless operation, improved
quality, and increased operational
efficiency- Upcycling and utilization of waste materials
generated in the manufacturing process of
automotive parts

25/30

3-7 Initiatives to improve capital efficiency
Aim to achieve ROE of 8% or more in FY2026 and 10% or more in 2030 and
improve PBR.
<Strengthening profit structure>- Promoting continuous cost improvement- Improve efficiency of production and administrative operation
DuPontAnalysisthrough the use of digital tools- Maximize performance by investing in human capital

Ratio of net income to sales (%)<Improving investment efficiency >- Investment turnover through sales expansion- Verify investment efficiency based on 7% cost of capital
Total assets turnoverwhen making decisions on new investment<Balance sheet management>
Financial Leverage- Reduction of low-profit assets -Promotion of sale ofcross-shareholdings- Flexible acquisition of treasury stock
26/30

3-8 Sustainability：The progress of HR strategy
Identified 4 priority measures based on employee engagement survey andpromoting them
Employee engagement survey alreadyconducted in FY2023, management goals set
FY2023

FY2026

FY2030

48.2％

60％

70％

results

Positiveassessment rate

forecasts

targets

Empathy withmanagement
visionJob
rewardingPriority
MeasureRelationships
with superiors
and co-workers

we were certified as an

Excellent Health Management Corporation 2024
(Large Corporation Category) for the 3rd year in a row

Initiatives
Feeling ofgrowth andlearning

Strengthening Health Education
Promotion of mental health counselingSupport for returning employees
Health Care for Expatriates

27/30

3-9 Sustainability：CO2 Reduction initiatives
Promoting the initiatives of CO2 emission reduction and enhanced information
disclosure
Actively introduce solar power generation
Expanded at Higashi Ogaki Plant- Power generation capacity
3,200MWh/year approx.
- CO2 Reduction Effects
1,470t/year approx.

Achieved high rating in CDP- Leadership level A- for climatechange, for the 4th year in a row,
- Highest rating in the Supplier
Engagement Assessment- Selected “Supplier Engagement Leader”

Introducing energy-saving and highly
efficient equipment- Introduction of high-efficiency
air conditioning- Replacement of hydraulic power withelectric power- Improvement of efficiency byautomation equipment, etc.
- Promote energy conservation

Introduction of third-party
verification of CO2 emissions- CO2 emissions (Scope 1 and 2)- Third-party verification to be
implemented from FY2022- Continued implementation planned forthe future

28/30

3-10 Sustainability：Fostering Trust with Stakeholders
Ongoing efforts to foster trust with local communities and other stakeholders
Donated MATOMAT disaster relief mats to
Nanao City, Ishikawa Prefecture, and others

Tire Pressure Awareness Campaign

Donated approximately 6,000 disaster relief mats to 30
elementary and junior highschools in municipalities
affected by the 2024 Noto
Peninsula earthquake,
it worth approx.10 million yen.

Tire Pressure AwarenessCampaign at Shopping Malls

Promotion of local sports

Supporting children of the next generation

Active support for local sports
such as :- Men‘s and women’s soft tennis
clubs in the top league- Ogaki Minamo Softball Club,
which operates with the local
community- FC Gifu and Toyota Verblitz.

- Continued support for citizens’
groups working to create a place
for children- Foster the next generation ofhuman resources by hosting plant
tours for local elementary andjunior high school students, highschool students, and university
students.

Promoting understanding of
the importance of tirepressure management

29/30