(No explains)

(No explains)Our company was founded in 1930 with the domestic production of valve cores and celebrated its 90thanniversary last year. The JCR rating is A minus stable.
In Japan, we operate 8 plants in the Chubu, Kyushu, and Tohoku areas. Overseas, we are developing ourbusiness at 8 countries and have 17 consolidated subsidiaries.
Our business is divided into two segments: the stamping and molding products business, which produces
stamped products and molded products; and the valve products business, which produces valve products andTPMS products. We produce and sell the products you see here.

In fiscal 2020, due to the outbreak of COVID-19, we faced a major production cutback, starting with thesuspension of operations in China.
Against this backdrop, we thoroughly implemented profit improvement activities, including measures topause production, cost reduction, and fixed cost reduction, based on our policy of “Gaining a solid foothold
GLOCALly by preventing being infected and maintaining employment and our production system as a toppriority”.
In the first quarter, we had to post a large deficit due to the suspension of operations and closures, but in thesecond quarter, thanks to thorough cost improvement activities and a recovery in production, we achieved
profitability in the first half, and in the second half, supported by strong production, we were able to increase
profits and achieve positive full-year results.
In addition to the mutant strains and the fourth wave of infections arriving in Japan, there is also the risk ofshortage in the supply of semiconductors and resin materials. We will continue to take all possible measures
to prevent infections globally, maintain our production system, and secure our supply chain.

The Group's profit improvement and fixed cost reduction activities, which have been underway since the firstquarter, have lowered the break-even point and sales have recovered, resulting in a record high profit for thefourth quarter.
For the full year, net sales decreased by 9% from the previous year to JPY150.4 billion, and operating income
margin was 6% and operating income decreased by 14% from the previous year to JPY8.9 billion. Ordinary
income margin was 7.5% and ordinary income increased to JPY11.2 billion, and net income margin was 5.3%
and net income increased to JPY7.9 billion, an increase of JPY0.7 billion over the previous year.

Consolidated net sales decreased significantly in terms of sales volume due to the impact of COVID-19.
In the first quarter, we took measures to suspend operations and close the business, which resulted in a 45%
decrease in sales compared to the previous year, and applied for an employment adjustment subsidy, while
making Company-wide efforts to improve costs and reduce fixed costs. However, we ended up posting anoperating loss of JPY2.2 billion.
In the second quarter, we achieved sales of JPY40.9 billion and operating income of JPY3.1 billion, due to therecovery of production amid the results of cost reduction, and we achieved a profit of JPY0.8 billion for the
first half of the year.
With the recovery of production in the third and fourth quarters, operating income was JPY4.1 billion in thethird quarter and JPY4 billion in the fourth quarter.
As a result, although operating income turned out be negative JPY5.2 billion due to the decrease of sales
volume, we have suppressed profit decrease to JPY1.5 billion, as a result of JPY4 billion in cost improvement
and cost reduction efforts. The break-even point for FY2020 has been lowered by less than 10% from FY2019.
Operating income at the time of the Lehman Shock was JPY3.2 billion.
Ordinary income increased by JPY0.1 billion over the previous year due to foreign exchange gains of JPY1.2billion and equity in earnings of affiliates of JPY0.4 billion.

In the stamping and molding business, full-year net sales declined 8% YoY to JPY104.5 billion, despite
increased sales of ultra-high-tensile material products, but operating income rose 1% to JPY3.9 billion, thanks
to improved profitability and activities to reduce fixed costs.
In the valve business, full-year net sales fell 12% YoY to JPY45.7 billion, while operating income declined 24%
to JPY4.9 billion, despite improved profitability, the results of fixed cost reduction activities and synergies withSchrader.

Sales in Japan, Europe, and Asia were all down due to the impact of COVID-19, but profits remained in theblack.
In Japan, we secured the same level of profit as the previous year due to the significant effects ofimprovements and fixed cost reductions. In Europe and the US, the impact of the delayed recovery of theEuropean automobile market has resulted in a larger decline in profits. In Asia, profit decreased due to theone-time revenue from molds in FY2019.

We expect a gradual upturn toward the end of the fiscal year, as the recovery of semiconductor supply isexpected to be delayed to the latter half of the year, in addition to the slow economic recovery due to themutated strain of COVID-19 and the situation we see right now of the fourth wave of infections.
As a result, for the full fiscal year ending March 31, 2022, we forecast net sales to increase by JPY5.5 billion to
JPY156 billion and operating income to increase by JPY0.5 billion to JPY9.5 billion.
In terms of sales recognition, due to the enactment of Japan's revenue recognition accounting standards, theaccounting treatment of materials and parts supplied by customers for a fee will be changed from gross tonet, resulting in an apparent decrease in sales of approximately JPY5 billion. There will be no impact on profit.

Last year's sales volume fell sharply by JPY14.1 billion due to the impact of COVID-19, but this year's sales
volume is expected to increase by JPY14.7 billion due to a recovery in production.
Operating income is expected to increase by JPY0.5 billion, despite an expected cost improvement of JPY2.8billion, due in part to an increase in expenses associated with increased production.
The exchange rate is assumed to be JPY105 to USD1, and the exchange rate sensitivity is approximately JPY100
million per JPY1 per year.

In the stamping and molding segment, sales are expected to increase 3% to JPY107.4 billion, and operating
income is expected to rise 15% to JPY4.5 billion.
In the valve business, sales are expected to increase 6% to JPY48.3 billion and operating income to JPY5 billion.
Both businesses are expected to increase in sales and profits.

In Japan, we forecast net sales of JPY71 billion and operating income of JPY5.6 billion, up for 8%.
In the US and Europe, we expect net sales to increase 8% to JPY56.3 billion and operating income to rise 15%
to JPY1.8 billion.
In Asia, sales are expected to increase by 3% to JPY28.7 billion and operating income to JPY1.9 billion.
Both sales and profits are expected to increase in each region.

Due to the impact of COVID-19, we reduced our capital expenditure in FY2020 compared to the previous year
by determining the necessary investments that will be effective.
In addition to investments in production preparations such as stamp molds, we have expanded our plants inNorth America and Japan, installed large stamps, and built a new type of production line for TPMS.
In fiscal 2021, we will continue to carefully select and implement the investments necessary for growth
including production preparation and other areas.

In addition to restraining investments and expenses, the Group's internal cash management and the use oftax measures under the pandemic resulted in the commitment line contracted at the beginning of the year
not being executed.
As a result, the balance of cash and deposits increased by JPY10 billion to JPY28 billion.
In FY2021, we will continue our efforts to curb investments and reduce interest-bearing debt by JPY4.5 billion.

In response to the significant recovery in our business performance since the last forecast, we resolved at theBoard of Directors meeting held on April 28 to pay an annual dividend of JPY33 per share.
In addition to the interim dividend of JPY10 per share, we will pay a year-end dividend of JPY23 per share, up
from the initial dividend of JPY10 per share, for an annual dividend of JPY33 per share.
The dividend payout ratio will be 25%.
The Company has decided to move up the timing of dividend payment from the General Meeting ofShareholders to the Board of Directors' resolution and set May 31 as the date of dividend payment.
For the next fiscal year, we plan to pay the same amount dividend of JPY33 per share, with a payout ratio of
25% as in the current fiscal year.

The automotive industry is in the midst of a once-in-a-century revolution, and the transition to a mobility
society is being accelerated by CASE and other measures. In the midst of this, major technological shifts areoccurring, such as energy conservation, weight reduction, AI, and the advancement of IoT. In response, weare developing and promoting our strategy in our mid-term management plan, OCEAN-22.
Against this backdrop, we recognize that the SDGs proposed by the United Nations and the national policy ofcarbon neutrality are important issues that directly affect our competitiveness as a member of the automotiveindustry.
In addition to these issues, there will be accelerated changes in the environment due to the impact of COVID19, and we will need to respond quickly.
In particular, as a manufacturing company, we believe that we should do our utmost to tackle theminimization of environmental load as “PACIFIC Environmental Challenge 2050”, and we are proceeding withinitiatives by turning to sustainability management based on our existing policies, measures, and changes inthe external environment.

Under our long-term vision, ”PACIFIC GLOCAL VISION”, we will expand the pillars of our medium-term
management plan, OCEAN-22, which are stamping and molding, valves, TPMS, and new businesses, weave
this as a warp, and we will promote sustainability management by weaving the SDGs into the weft. We willcontinue to contribute to the next generation mobility society through manufacturing.

Based on the know-how of mold and process design in the stamping and molding business, our strength iscold ultra high-tensile stamped products which can reduce weight by 10% by forming materials with twice thestrength of conventional materials, contributing to lighter car bodies, lower fuel consumption, and reduced
CO2 emissions.
In addition to aluminum stamping, we expand the scope of our business to functional parts such as battery
cases and forging stamps.
In the business of molds, we are developing high-design plating-less film decorating technology and highperformance, lightweight products for sound and vibration insulation, such as engine covers made ofurethane foam resin. We will aim to further expand our business domain from the aspect of reducing
environmental impact by evolving vehicle weight reduction technology, which is increasingly in demand withthe progress of electrification.

In order to further reduce the weight of car bodies, we have been working on the development of technology
to expand the forming area of ultra-high-tensile materials by using the cold stamping method instead of thehot stamping method and we are ready for mass production of 1,470 megapascal forming.
Comparing the cold stamping method with the hot stamping method, the power consumption can besignificantly reduced, CO2 emissions can be reduced by 90%, and costs can be reduced.
In addition to expanding the area of skeletal stamp forming, we are developing optimal body design bydeepening our structural analysis technology. We will continue to make proposals for weight reducing while
maintaining collision safety, thereby reducing the environmental impact, and achieving safety and security atthe same time.
By expanding our business domain from upstream to downstream of body skeleton formation, we will aim toevolve from a press manufacturer to a body shell manufacturer.

In the resin business, we will expand our product lineup by developing polyurethane foam materials that
improve NV performance and comfort and strengthen our competitiveness through lower costs and improved
functionality.
In addition, with the shift to electrification, we believe that the need for sound and vibration insulation against
new types of noise, such as motor noise, will increase further. In addition to deepening our existingpolyurethane foam technology, we will deepen our product technology from the development stage of newmaterials to meet the growing needs of our customers.

Next, in the valve business, we will work with Schrader to provide products that make use of our sealing
technologies, including valve cores and tire valves, which are the products of our founding, as well as TPMS,
valves for car air conditioners, and valves for industrial use.
We are also responding to the needs of society and our customers by developing technologies and productsthat can adapt to new refrigerants for car air conditioners as an environmental measure.

As a manufacturer specializing in valves, we have secured a large share of the market for tire valves and valves
for car air conditioners.
Currently, car air-conditioning systems are undergoing major changes due to the shift to EVs, and we aredeveloping new system control valves that require the heat pump method, using our knowledge accumulated
in air-conditioning systems for home appliances.
Schrader, which merged with the Company in 2018, has achieved combined results in the manufacturingphase, including technology, cost and productivity. In addition to this, we will further increase the speed oftechnology and product development by collaborating with our 3 bases in Japan, the US, and Europe to secure
market needs and promote joint development with silicon, thereby increasing the effectiveness of synergy
development.
As CASE progresses, TPMS functions will be required to be improved, and demand for trucks, buses andmotorcycles is expected to increase in addition to passenger cars, so we will continue to develop valuations.
In addition, we have started to sell general-purpose transmitters for the aftermarket, for which replacementdemand is expected to increase for passenger cars.

We are developing technologies in new fields by utilizing the core technologies cultivated in our existing
businesses and adding AI technologies as well.
In recent years, the demand for environmental monitoring has been increasing. In the food industry, HACCP
regulations have been strengthened for product management in the supply chain transportation process, andfor pharmaceuticals GDP guidelines have been introduced and gaining consideration to ensure quality in thedistribution process.
In addition, the demand for monitoring is increasing in various industries, such as the livestock industry's
growing need for individual management of livestock.
We will shift in the development of not only hardware technology but also by utilizing IoT and ICT, including
solutions, using TPMS-based sensors and radio wave transmission technology, and introduce newtechnologies and products into business fields that contribute to a new, richer lifestyle.

Against this backdrop, we started selling e-WAVES, a multi-sensing logger that can monitor conditions during
the transportation process by applying the core technology of TPMS, in April and started delivering it to amajor transportation company.
This system can be used for quality control of foodstuffs, medicines, and vaccines that need to be transported
under low temperature conditions, so that it is possible to monitor the situation in real time duringtransportation. We believe that this is a product that can contribute to the security and health of society, andwe will continue to promote it.
We are also developing products based on sensing technology, such as forklift charging cables with a burnout
prevention function and server monitoring systems for data centers and will continue to respond with safeand reliable technology.

With the OCEAN-22 business as the warp and SDGs activities as the weft, we hope to promote sustainability
management and become a sustainable manufacturing company in the next-generation mobility society.

The 4 themes related to our long term vision, “PACIFIC GLOCAL VISION”, and SDGs will be explained.
In order to realize “A company that continues to provide new businesses, new products, and new technologies
on a GLOCAL scale by utilizing our core technologies toward a sustainable society”, we will promote activities
that consider the product and life cycle in LCA, from materials to design, equipment introduction, production,and disposal. As a manufacturing company, we have formulated the PACIFIC Environmental Challenge 2050
and are working to minimize our environmental impact by promoting total environmentally friendly productmanufacturing and solving customer issues through products for a mobility society.
In addition to creating a healthy and safe workplace under the COVID-19 pandemic, we will create anenvironment that emphasizes on human rights, such as respect for humanity and diversity and inclusion, andwe will value the new ideas and challenges of our employees and promote the respect and success of ourhuman resources.
In addition, in light of the transition to a prime market and the revision of the Corporate Governance Code,we will strive to coexist and co-prosper with local communities and deepen relationships with ourstakeholders, who will be able to evaluate us appropriately on a global scale. In addition, the entire supply
chain, including the Pacific Industrial Group and its suppliers, will work to realize a sustainable society.

In order to minimize the environmental impact of our business activities, we have set long-term goals toreduce CO2 emissions by 35%, waste emissions by 60%, and water consumption by 2030, in line with theguidelines of the Japan Auto Parts Industries Association as PACIFIC Environmental Challenge 2050, and areworking to achieve them.

We have already introduced solar power generation at 7 of our locations, and we are working to introduce it
globally, as well as to switch from heavy oil to city gas.
In addition to daily energy conservation measures such as productivity improvement and cost reduction, weplan to promote the development of a model plant for energy conservation.

We have been saying for a long time that manufacturing is a development of human resource, and we willcontinue and deepen our efforts to respect and promote human resources.
With regard to human rights, we formulated and disclosed a human rights policy in February this year. The
content will be integrated with the guidelines and disseminated to employees and suppliers in Japan andoverseas.
As a manufacturing company, we believe that the development of human resources is an issue that directly
affects our competitiveness, and we are promoting the development of global human resources througheducation at study centers where people can learn about manufacturing, on-the-job training throughimprovement activities in Japan and overseas, and education by rank.
As part of our efforts to create a healthy and safe workplace, we will create a safe and secure work
environment where all employees can work vigorously and promote work-life balance.

We are actively disclosing information on our sustainability management initiatives and various KPIs on theweb and in our Sustainability Report.
In recognition of these efforts, we were awarded the Leadership Level A minus in the CDP, Climate Change
Assessment last year, and in February, we were selected to the Leaderboard for Supplier Engagement
Assessment.
We are also considering endorsing TCFD, an international framework for disclosure of information on climatechange. Based on the TCFD, we will continue to integrate climate change impacts into our strategies anddisclose information.

Our company just celebrated its 90th anniversary last year. Although we refrained from holding majorcommemorative events, due to the spread of COVID-19, we did donate a PCR car to Gifu Prefecture and an
ambulance to its local authority with our Thai subsidiary in collaboration with other partners to commemorate
the 30th anniversary of its founding. We have also built a new production line for masks in our factory andare distributing them to employees, suppliers, and local communities.
We will continue to value the trust of our stakeholders and contribute to the development of the communityand society.
We, the Pacific Industrial Group, aim to become a company that has been in business for 90 years to 100 years,and beyond that, we will continue to create tomorrow with our thoughts and feelings.