（No Explains)(No Explains)

In Q1 of this fiscal year, our production was significantly reduced compared to the same quarter of theprevious year due to the impact of the lockdown in Shanghai and the shortage of semiconductors, but due tothe depreciation of the yen, the Group's sales increased 7.1% over the same quarter of the previous year andreached JPY44.4 billion, a record high for a single quarter.
The profits decreased due to lower sales volume, the impact of higher material prices, and soaring energy
costs, despite ongoing efforts to improve profitability and reduce fixed costs.
The operating income was JPY1.6 billion, down 50% from the same period of the previous year, and theordinary income was JPY3.8 billion, the same level as the same period of the previous year due to foreignexchange gains from the weaker yen, and the net income for the quarter was JPY2.9 billion, up slightly fromthe previous year and a record high for a single quarter.

Sales increased by JPY2.9 billion from JPY41.5 billion in Q1 of the previous year, mainly due to JPY3.3 billionof positive exchange differences from the yen depreciation, despite a JPY1.7 billion negative impact mainly
due to a decrease in sales volume.

The operating income decreased by JPY1.7 billion from JPY3.3 billion in Q1 of the previous year, mainly due
to sales price revisions, a decrease in physical distribution, an increase in materials prices, and labor cost
impacts to maintain employment during the production reduction.

In the stamping & molding business, the sales increased 9.5% YoY to JPY31 billion and the operating income
decreased JPY1 billion to JPY0.4 billion due to the impact of the yen depreciation, despite a decrease inphysical distribution caused by the lower production volume.
In the valve business, the sales increased 1.7% to JPY13.3 billion and the operating income decreased by JPY0.6
billion to JPY1.1 billion due to the impact of the yen depreciation, despite a decrease in the physicaldistribution like in the stamping & molding business.

Sales in Japan decreased 7.6% to JPY16.2 billion and operating income decreased JPY1 billion to JPY0.8 billion;
sales in Europe and North America increased 13% to JPY18.3 billion and operating income decreased JPY0.4
billion to JPY0.1 billion; and sales in Asia increased 26% to JPY9.8 billion and operating income was flat YoY at
JPY0.7 billion.

We have revised our forecast based on the Q1 results and the uncertain external environments, including ourcustomers' production plans, semiconductor shortages, the impact from COVID-19, and the impact of thesituation in Ukraine on the economy.
For the full year, there is no revision to sales, but the operating income is revised downward by 16% from
JPY12.5 billion to JPY10.5 billion. We reduce the percentage for a decrease in ordinary income and net income
to 3.6% and 5%, respectively, partly due to the positive impact of the foreign exchange rate.
The forecast exchange rate has been changed from JPY120 to JPY130 to the dollar after Q2. The exchange
rate sensitivity is JPY100 million if the yen depreciates by JPY1.

For the full year, we forecast sales of JPY178 billion, up by JPY13.5 billion from JPY164.4 billion in the previousyear, due to an increase in sales volume of JPY11.1 billion, a JPY10.3 billion increase in foreign currencytranslation made by the yen depreciation, a JPY1.4 billion increase in foreign exchange gains, and a JPY9.7
billion decrease in sales due to the impact of increased customer-received materials for stamping.

Operating income for the full year is expected to increase by JPY2.7 billion due to increasing physical volume
and by JPY2.5 billion due to cost improvement, but is projected to decrease by JPY0.2 billion from the previous
year to JPY10.5 billion due to the negative impact of selling prices and raw materials prices.
We will continue to focus on improving profitability while controlling increases in labor costs and expenses
caused by production fluctuations.

Sales for the stamping & molding business are projected to increase 8.1% YoY to JPY123.5 billion, andoperating income is projected to increase JPY0.7 billion to JPY5.7 billion.
Sales in the valve business are projected to increase 8.4% YoY to JPY54.2 billion, while operating income isexpected to decrease by JPY1 billion to JPY4.8 billion.

In Japan, we forecast sales of JPY64.8 billion, down 5.8% from the previous year, and operating income ofJPY4.9 billion, down JPY1.2 billion. In Europe and North America, we forecast sales of JPY70.7 billion, up 15%,and operating income of JPY2.1 billion, up JPY0.7 billion. In Asia, we forecast sales of JPY42.5 billion, up 23%,and operating income of JPY3.3 billion, up JPY0.1 billion.

As in FY2021, for FY2022 we will continue our efforts to improve profitability and minimize losses, since we
expect materials and energy costs to soar and production to fluctuate.

On June 1, we launched CAPSULE SENSE, a cattle body condition monitoring system, as a new product thatwill help solve social issues.
The challenges the livestock industry are facing include an increase in the number of animals per household,a lack of successors, declining productivity due to lower fertility rates, and economic losses due to disease.
To solve these problems for farmers, we have developed a new product, CAPSULE SENSE, a cattle bodycondition monitoring system developed by combining our sensing and AI analysis technologies. A capsule isput into the stomach of cattle, and by using our TPMS technology, sensing data is collected and analyzed todetect signs of changes in the cattle’s body condition.
The advantage of our product lies in its high detection capability using temperature and acceleration sensors,and its ability to detect estrus, parturition, and disease with only a single product. In addition, because it stays
in the stomach, it is less burdensome to cattle and less likely to break down than products that are fixed on
the body, and therefore does not require maintenance.
The product has been well received in the six-month monitoring test, and we will continue to expand sales
throughout Japan so that even more farmers can use the product in the future.

Looking back over Q1, there were repeated production fluctuations caused by the shortage of semiconductors
and the impact of the Shanghai lockdown, as well as cost increases due to higher materials prices and soaring
energy prices, but we were able to control labor costs, expenses, and other costs through our past experience
with COVID-19 and as a result still secured a profit.
From Q2 onward, although the impacts of shortages in the supply of semiconductors and other components
still linger, we assume that the worst will be reached in August and that the recovery trend will begin from
September onward. Although the external environment remains uncertain, we will maintain the strengthened
profit structure and a system resilient to production fluctuations, and we will improve systems to maximize
the effects of physical volume when it recovers.
In addition, for activities for future growth in existing businesses, we are progressing on a steady basis bydeveloping products and receiving orders for batteries and EV-related products. We will continue our efforts
to develop and expand sales, including new products in non-automotive fields such as those introduced before.