(No explains)(No explains)

In Q1 of the current fiscal year, production increased significantly compared to the previous
fiscal year, when automakers globally suspended operations, and the Group’s sales
increased 74% YoY to JPY41.5 billion, recovering to the fiscal 2019 level.
The adoption of the revenue recognition standard had a negative impact of JPY1 billion
from the previous standard.
As for profits, thanks to the recovery in sales and continuous efforts to improve profitability
and reduce fixed costs, operating income was JPY3.3 billion, ordinary income was JPY3.8billion, and net income was JPY2.8 billion, all of which were record profits for 1 quarter.
The adoption of the revenue recognition standard did not have a material impact onearnings.

Operating income increased by JPY5.6 billion from a loss of JPY2.2 billion in Q1 of theprevious fiscal year, mainly due to a recovery in sales volume and cost improvements.

Sales in the Stamping and Molding business increased 80% YoY to JPY28.3 billion, andoperating income rose JPY3.6 billion to JPY1.5 billion. As a result of the adoption of therevenue recognition standard, net sales were JPY1 billion lower than the previous standard.
This was due to a JPY0.2 billion increase in the impact of the lump-sum recording of moldcost recovery, and a JPY1.2 billion decrease in the impact of the offsetting presentation ofsales and cost of goods received from customers.
Sales in the Valves business increased 62% to JPY13.1 billion, and operating income
increased JPY1.9 billion to JPY1.8 billion. In this business segment, the impact of theadoption of the revenue recognition standard was immaterial.

Sales and profits increased due to a recovery in sales volume in all regions of Japan, Europe,the US, and Asia.
Sales in Japan increased by 43% to JPY17.5 billion and operating income increased by
JPY3.1 billion to JPY1.8 billion. Sales in Europe and the US increased by 116% to JPY16.1
billion, and operating income increased by JPY1.6 billion to JPY0.6 billion. Sales in Asia
increased by 90% to JPY7.7 billion and operating income increased by JPY0.9 billion toJPY0.8 billion. Both sales and profits increased in China, Thailand, Taiwan, and South Korea.

Based on the strong performance, including a record-high Q1 profit and the latest customer
plans, we have revised our H1 of the fiscal year and the full fiscal year forecasts upward.
For the full year, we have revised our previous forecast of JPY156 billion for net sales toJPY164 billion, up 5%, and operating income from JPY9.5 billion to JPY12.5 billion, up 31%.
The assumed exchange rate is JPY110 to the dollar for 2 quarter and JPY105 for 3 and 4quarters. The annual amount is JPY100 million for every JPY1 of currency sensitivity.

We are forecasting operating income of JPY12.5 billion for the full year, an increase ofJPY3.5 billion from the previous year. We will continue to focus on improving profitability
while controlling the increase in labor costs and expenses due to increased production.

Sales in the Stamping and Molding segment are forecast to increase 8% YoY to JPY113.8
billion, and operating income is expected to rise 55% to JPY6.1 billion. Net sales areexpected to decrease by JPY4 billion due to the application of the revenue recognition
standard. This includes an increase of JPY1.3 billion due to the impact of lump-sumrecording of mold cost recovery and a decrease of JPY5.3 billion due to the impact ofoffsetting presentation of goods received from customers.
Sales in the Valves business are expected to increase 9% YoY to JPY49.9 billion, andoperating income is expected to rise 28% to JPY6.4 billion. In this business segment, theimpact of the adoption of the revenue recognition standard was immaterial.

Sales in Japan are expected to increase by 5% to JPY74 billion and operating income by
37% to JPY7.1 billion, sales in Europe and the US are expected to increase by 11% toJPY58.6 billion and operating income by 78% to JPY2.8 billion, and sales in Asia areexpected to increase by 13% to JPY31.4 billion and operating income by 26% to JPY2.4billion.

Consolidated net sales and operating income by quarter since the previous fiscal year.
In Q1 of the previous fiscal year, sales and profits declined significantly due to the impactof the coronavirus, but since Q2, quarterly sales and operating profits have been the highest
compared to the same period due to the recovery of production and the improvement ofour company’s structure. We expect Q2 of the current fiscal year to be another record high,but we will continue to work on improving profitability, partly because of the recentfluctuations in production.

Continuing from last year, we are implementing capital investments for this fiscal year byidentifying effective and necessary investments. We plan to invest JPY18 billion in plant andequipment, and JPY16.5 billion in depreciation and amortization, an increase of JPY1.9
billion from the previous fiscal year.
Even amid the coronavirus disaster, we are continuously investing for future growth, andare investing in building expansion and additional large presses at its 3 main bases in Japan,
North America, and China to prepare for production associated with the launch of newproducts. In addition to increasing production capacity, we will strive to build a more
efficient production system by reallocating production facilities to meet the needs of ourcustomers.

In response to the decline in sales in the previous fiscal year due to the impact of thecoronavirus, we have been working to improve profitability with a strong sense of urgency,and although the recovery of the Valves business market has been delayed, earnings haverecovered to the level of fiscal 2019.
As for the Stamping and Molding business, we were able to make a large profit in the pastquarter, having a return on investment in large presses that we have been implementing.
We have seen improvements in productivity and profitability in both the Stamping andMolding and Valves businesses, which has led to a stronger business structure. In thecurrent fiscal year as well, the future remains uncertain due to the shortage ofsemiconductors and production stoppages caused by the coronavirus, but the Group willcontinue to implement thorough infection prevention measures and conduct stable business
operations.
We also see electrification and carbon neutrality initiatives as growth opportunities for theGroup and are accelerating our development of related products. In the Valves business,
we are promoting development and sales expansion on a global basis, as heat pump-type
car air conditioners are expected to expand with the shift to EVs, and demand for electric
expansion valves used in these systems is expected to grow.
In the Stamping and Molding business, we will strive to deepen our structural analysistechnology and cold ultra-high tensile-forming technology to further expand sales inresponse to the increasing need for weight reduction in line with the shift to EVs.

In addition, the multi-sensing logger “e-WAVES”, which can be used to manage the qualityof transportation of pharmaceuticals and foodstuffs, was launched in April and is being usedfor vaccine transportation and temperature control, helping to solve social issues.
We will continue to aim for sustainable growth, proceeding expansion in existing areas andshifting resources to new fields.