Financial Results
Briefing for Q2
Year Ending March 2022
The 98th period：Cumulative Second Quarter(Apr. 1st, 2021- Sept. 30th, 2021)

October 29, 2021

Table of Contents

１． Financial Results for Q2
２． Full Year Forecast for FY2021

３

Sustainability Management & Focus

４．New Plant Construction
Caution in handling this document
Future forecasts, including this document, were judged according to the current information. Actual financial
results might be considerably different from the forecast mentioned here depending on the Japanese orinternational economic situation, business trends related to our company, and any risk or indefinite factors
involved in fluctuation of exchange rates.

2/37

Looking Back on the First Half of 2021 and Issues
in the Second Half
Gaining a solid foothold GLOCALly by preventing being infected and maintaining
employment and our production system as a top priority■Changes in management environment
・Covid-19 infection spread（fifth wave）
・Production fluctuations due to insufficient supply of semiconductors and parts・steep rise in raw material prices■Our efforts in Covid-19 pandemic
・Improvement, cost/fixed cost reduction ・Training employees
・Use of employment adjustment subsidy ・Preventing infection of employees andtheir family
・Maintaining supply chain■Future issues
・Prolonged Covid-19 effect, preparation for the 6th wave
・Concerns about supply of semiconductors and parts, impact of power shortagein China
・Preparation of system for production fluctuation and recovery production
3/37

1-1 Q2 Consolidated Results
Recovered from the previous year's performance in Covid-19.
Due to customer production cuts in September, it did not reach previous forecast.
（100 million yen, ％）FY2021

FY2020Q2 Cumulative
ResultQ2 Cumulative
forecast

Sales

648

830

Operating Income

8

65

1.3%

7.8%

13

70

2.0%

8.4%

Quarterly net income attributable tothe parent company shareholders

950

Quarterly Net Income margin

1.5%

Average exchange rate（U.S. dollars）¥106.4

Operating Income Ratio

Ordinary Income
Ordinary Income Ratio

Forecast ratio

YoY rate
Gain&Loss% Change

Gain&Loss% Change

784

+135

＋21.0

△45

△5.5

50

+41

＋482.6

△14

△22.7

6.4%

+5.1P

－

△1.4P

－

57

+44

＋341.4

△12

△17.2

7.4%

+5.4P

－

△1.0P

－

43

+34

＋364.9

6.0%

5.6%

+4.1P

－

¥110.2¥109.9+¥3.5－

Q2 Cumulative Result

Record High

Record High

Record High

△6
△0.4P
△¥0.3

△12.4
－
－

※Revenue recognition accounting standards have been applied since FY2021. The amount of impact on sales is as follows. The impact on profits is minor.

Sales increased by 0.8 billion yen due to the collective recognition of mold cost collection, and decreased by 2.2 billion yen
due to the offset display of sales of customer-received products and cost of sales.

4/37

1-2 Q2 Causes of Fluctuation in Consolidated Operating Income

Achieved record high profits through sales recovery and cost improvement
Increasedsales volume+52

Increased
Depreciaton(excluding dies)△12

unit: 100 million yen

Selling price

△9

Cost
improvement

Increased
Expenses△8

Increasedlabor costMaterial
price

Exchange
gain

50

+4

+5

+15

△5

8

FY2020Q2 cumulative

Operating Income ＋４.１ billion yen

FY2021Q2 cumulative

5/37

1-3 Q2 Consolidated Business Segments
Sales and profits increased for stamping & molding and valves（100 million yen,％）
Sales

Operating Income

20/Q2

21/Q2

YoY rate

20/2Q

21/2Q

YoY rate

Cumulative
ResultCumulative
ResultGain&Loss %Change

Cumulative
ResultCumulative
ResultGain&Loss %Change

457

532

△2

16

+19

△0.5%

3.1%

+3.6P

10

33

+22

5.7%

13.5%

+7.8P

Stamping & Molding(The impact of application ofrevenue recognition)

+75

+16.5

(△14)

Operating Income Ratio

Valves(The impact of application ofrevenue recognition)

Operating Income Ratio

－

190

250

+60

+31.5

+212.2(0)※Revenue recognition accounting standards have been applied since FY2021. The amount of impact on sales (included figures) is as follows.
The impact on profits is minor.

6/37

1-4 Q2 Consolidated Regional Segment
Sales and profits increased in Japan, Europe, America, and Asia
（100 million yen,％）

Sales

Operating Income

20/Q2

21/Q2

YoY rate

20/Q2

21/Q2

YoY rate

Cumulative
ResultCumulative
ResultGain&Loss %Change

Cumulative
ResultCumulative
ResultGain&Loss %Change

306

334

5

31

+25

1.8%

9.3%

+7.5P

△3

5

+8

△1.6%

1.8%

+3.4P

5

13

+8

4.3%

8.6%

+4.3P

Japan
(The impact of application ofrevenue recognition)

+27

+9.1

(△13)

Operating Income Ratio

Europe & America

224

297

+72

+32.4

Operating Income Ratio

Asia
Operating Income Ratio+473.9

116

151

+35

+30.0

－

+158.7※Revenue recognition accounting standards have been applied since FY2021. The amount of impact on sales (included figures) is as follows.
The impact on profits is minor.

7/37

１．Financial Results for Q2
２．Full Year Forecast for FY2021

３．Sustainability Management & Focus
４．New Plant Construction
8/37

2-1

Full Year Consolidated Financial Forecast

Reviewed the full-year forecast by incorporating the latest information
into the second-half forecast based on the 2Q cumulative results
FY2020ResultSales

FY2021
Previous Forecast

YoY rate
Forecast
this time（100 million yen,％）Previous Forecast Rate

Gain&Loss%Change

Gain&Loss%Change

1,504

1,640

1,640

+135

9.0%

+0

0.0%

Operating Income

89

125

105

+15

17.0%

△20

△16.0%

Operating Income Ratio

6.0%

7.6%

6.4%

+0.4P

－

△1.2P

－

Ordinary Income

112

140

125

+12

11.4%

△15

△10.7%

Current Net Income

79

100

90

+10

12.8%

△10

△10.0%

ＲＯＥ

7.6%

8.5%

7.7%

+0.1P

－

△0.8P

－

ＲＯＡ(Operating income basis）

4.2%

5.4%

4.6%

+0.4P

－

△0.8P

－

Net Assts per Share¥1,846¥2,021¥2,018

¥172

9.3%

△¥3

△0.1%

Average exchange rate (US dollars)¥105.4¥107.5¥110.0

¥4.6

－

¥2.5

－

※Current net income is the current (quarterly) net income attributable to the parent company shareholders.
※Revenue recognition accounting standards have been applied since FY2021. The amount of impact on sales is as follows. The impact on profits is minor.
Sales will be increased by 0.7 billion yen due to the collective recognition of mold cost collection, and will be decreased by 4.9 billion yen
due to the offset display of sales of customer-received products and cost of sales.

9/37

2-2 Full Year Causes of Fluctuation in Consolidated Operating Income

Sales are expected to recover. Expected to increase profits through continuous
cost improvement
Increasedsales volume

Selling price

+55

△22

Increased
Depreciaton(excluding dies)△17

89

unit: 100 millon yen

Increased
Expenses△14

Increasedlabor cost
△14

FY2020Cost
improvement
Material
price△7

Operating Income ＋１.５billion yen

Exchange
gain
+7

105

+27

FY2021 Forecast

10/37

2-3

Full Year Consolidated Business Segments

Sales and profits are expected to increase for stamping & molding and valves（100 million yen,％）

Sales

Operating Income

FY2020

FY2021

YoY rate

FY2020

FY2021

YoY rate

ResultForecast

Gain&Loss %Change

ResultForecast

Gain&Loss %Change

1,045

1,136

39

42

+2

3.7%

3.7%

+0.0P

49

63

+13

10.9%

12.6%

+1.7P

Stamping & Molding(The impact of application ofrevenue recognition)

+90

+8.7

(△42)

Operating Income Ratio

Valves(The impact of application ofrevenue recognition)

Operating Income Ratio

+7.4

457

501

+43

+9.6

+26.0

(0)

※Revenue recognition accounting standards have been applied since FY2021. The amount of impact on sales (included figures) is as follows.
The impact on profits is minor.

11/37

2-4

Full Year Consolidated Regional Segment

Sales and profits are expected to increase in Japan, Europe,
America, and Asia
（100 million yen,％）

Sales

Operating Income

FY2020

FY2021

YoY rate

FY2020

FY2021

YoY rate

ResultForecsatGain&Loss %Change

ResultForecsatGain&Loss %Change

702

718

51

63

+11

7.4%

8.8%

+1.4P

15

17

+1

3.0%

2.9%

△0.1P

18

24

+5

6.8%

7.3%

+0.5P

Japan
(The impact of application ofrevenue recognition)

+15

+2.2

(△42)

Operating Income Ratio

Europe & America

523

595

+71

+13.7

Operating Income Ratio

Asia
Operating Income Ratio

+21.7

277

327

+49

+17.7

+8.5

+26.3

※Revenue recognition accounting standards have been applied since FY2021. The amount of impact on sales (included figures) is as follows.
The impact on profits is minor.

12/37

2-5 Return to Stockholders
The interim dividend is 16 yen as expected. The year-end
dividend is expected to be 17 yen.

13/37

2-6

Quarterly Consolidated Financial Results

Sales and profits declined in the second quarter of 2021
due to the impact of reduction in production

Operating
IncomeSales(100 mllion yen)

Rapid

recovery,RecordSignificant
decreasein salesdue tohigh

Recordhighas Q3

in FY2018
was thehighest
ever

as Q2

409

※¥44.4 billion ※¥42.9 billion

in Q4

432

423

RecordRecordRecordrecovery,

high

high

high

Record

as Q3

as Q4

as Q1

production

high

41

cuts inas Q2

40

August and

31

Sales

in FY2019declined

was thedue tohighestcustomer

ever
in Q1

415

Rapid

September

368

COVID19(100 ml l ion yen)

Profitdecreased
due todecrease

33

in salesSignificant
decrease

16

in profit
due toCOVID19

238

△22
20/1Q

20/2Q

20/3Q

20/4Q

21/1Q

21/2Q

20/1Q

20/2Q

20/3Q

20/4Q

21/1Q

21/2Q

14/37

2-7

Consolidated Capital Investment & Depreciation

Prioritizing capital investment that has a large effect and that comes out quickly

Capital Investment
208

アジア
Asia
Europe
欧米&
America

34

61

220
48

235

Depreciation（100 million yen）

21
49

180
162
18

59

'17

146

40

25

23

33

38

77

84

85

91

'18

'19

'20

'21

99

24

24

26

26
45

13

112

'18

142
127

61

113

163

40

164

Japan
日本

（100 million yen）

84

'19

'20

100
62

'21
(forecast)'17(forecast)

15/37

１．Financial Results for Q2
２．Full Year Forecast for FY2021

３．Sustainability Management & Focus
４．New Plant Construction
16/37

3-1 Pacific Group’s Value Creation Model
Aiming to be a company needed by society as a group

E

17/37

3-2 Approaches for to Address Changes in the External Environment
and Social / Customer Issues
Shift to sustainability management and aim to be a company that grows sustainably

PACIFIC GLOCAL VISION【100年に一度の大変革】 ・CASE ・モビリティ社会進展【OCEAN-22】
業界動向・顧客ニーズに応える技術開発・拠点整備
新技術・新材料・新工法開発の加速
軽量化

防音・防振

電動化

新領域・新製品

カーボンニュートラル
SDGs など
社会的要求の高まり

コロナ影響
スピードアップ
DX など

サステナビリティ経営
18/37

3-3 Reduction of CO2 Emissions in the Life Cycle
Promote initiatives with an eye on purchasing, production, use, and disposal
Life Cycle Assessment

Current fuel regulations

Vehicle running

Material

Parts Production<Electricity>
Significant reductionof CO2 by renewableenergy power
generation

Vehiclemanufacturing

DisposalBEVvehiclesElectronics
Fuel making

Regulation

19/37

3-4 Weave “OCEAN-22”as a Warp, “SDG Activities” as a Weft

Passion in Creating Tomorrow
PACIFIC GLOCAL VISIONPACIFIC環境チャレンジ2050

SDGs Activities
ステークホルダーとの信頼醸成

OCEAN-22

事業活動
プレス・樹脂 バルブ製品
事業
製品事業

新製品
事業

製品を通じた社会・顧客課題の解決
環境負荷の極小化
30年目標：CO2排出量 50%削減

人財の尊重と活躍

PACIFIC VALUES 「夢と挑戦」「信頼と感謝」

20/37

3-5 Key Issues of Sustainability
Identified 4 themes and 15 materialities related to long-term vision
Vision：持続可能な社会に向けて、コア技術を活かし、新事業・新製品・新技術を提供し続ける企業■製品を通じた社会・顧客課題の解決
持続可能なモビリティ社会と豊かな暮らしへの貢献
モビリティの安全性向上
環境配慮製品の開発■環境負荷の極小化
気候変動の緩和および適応
持続可能な資源の利用
水資源の保全

PACIFIC
環境チャレンジ
2050

Vision：ステークホルダーに信頼され、地域社会に根ざし、共存・発展できる真のGLOCAL企業

Vision：社員の新しい発想や挑戦を大切にし、仕事と生活の調和が実感できる企業■ステークホルダーとの信頼醸成■人財の尊重と活躍

企業倫理・コンプライアンス
責任ある調達
顧客満足度の向上
地域社会の発展

人権の尊重
安定した雇用と働きやすい職場
従業員の安全と健康
人財育成と挑戦できる風土の醸成
ダイバーシティ＆インクルージョン

21/37

3-6 “PACIFIC Environmental Challenge 2050”
Promote activities by setting milestones in efforts
to minimize the environmental burden

Carbonneutrality

Climatechangemitigation
andadaptation

SDGs

Item

CO2
emission(FY2019
Result)93.9(kt)

2030
Goal

Compared to
2019

50%
reduction

Net
zero

Compared to
FY2019Sustainable

Minimize
environmentalload

use ofresources

Conserva
tion ofwater
resources

Waste
emission

3,132(t)・Renewable energy usage ratio…over 20％

2050
Goal

Japan
Reduce by
Minimize
60％
Overseas
Reduce by
30％

なりゆき

If let things take their course

100

emission
CO2
CO2排出量

Materiality

Current
Status＜2030 Mid-term Goal＞
・CO2 emission…▲50％

Daily
日常改善
improvement
革新技術
technology

50
Renewableenergy再エネ
Emission factor

排出係数改善improvement
0'19 '20
基準年
Base
year

Water
usage

1,744
(k㎥)

Properuse'30

Fiscal
年度year'40'50

Draw up [Pacific Environmental Challenge 2050][PACIFIC環境チャレンジ２０5０」策定

CO2
CO2排出量emission
ネットゼロ
Net Zero

Minimize22/37

3-7 Efforts Toward Carbon Neutrality
Identify energy reduction measures from three perspectives and aim toachieve CO2 emission reduction targets

Energy saving through daily
improvement activities

・Productivity improvement based on
Toyota Production System
・Repairing air leaks and steam leaks

Energy saving by developing
production equipment andintroducing high-efficiency
equipment

・Introduction of high-efficiency
equipment when updating equipment etc.
・LED lighting
・Urban gasification of boiler heavy oil

Use of renewable energy

・Planned introduction of solar power（already introduced in 6 domestic bases,
1 overseas base ）Introducing ICP(Internal Carbon Pricing)*1
・"ICP amount depending on the expected power consumption of the equipment and theamount of CO2 emitted" was visualized as an additional running cost. Operated as one of
the criteria for investment decisions.
＊1 A mechanism to promote low-carbon investment and measures at carbon prices set by companies

23/37

3-8 Respect and Activation of Human Resources,
Declaration of HealthPrioritize respect for human rights and promote health management

Human Rights Policy
Pacific group policy, principleof management and operation

１．Basic policy
２．Understanding, evaluating andpreventing human rights risks

３．Relief
４．Training
５．Regular review/ improvement

Human rights due
diligence and relief＋“Code of conduct”“Supplier CSR Guidelines”

Declaration of Health
A virtuous cycle where you can work vigorously andgrow your company through healthy management!
Pacific Group Declaration of Health
We consider the health and safety of ouremployees as the starting point of"manufacturing," and strive to maintainand improve the physical and mental
health of our employees and their families
and create a comfortable working
environment for the sustainable growth ofthe company and its employees. In orderto "create tomorrow with all our thoughts"
in our brand slogan, we declare that wewill value new ideas and challenges, andwe will strive to create a company where
we can feel the harmony between workand life, and work soundly and lively.

HealthManagement
Cycle

Sept.2021

24/37

3-9 Fostering Trust with Stakeholders
Promote coexistence and co-prosperity efforts based on mutual trust and active
information disclosure
Development of policy system that will be thebasis of activities

Sustainability information disclosure
・Issued Sustainability report
2021

・Standard of conduct, Code of conduct
Revision of supplier CSR guidelines, global
expansion
・Training and compliance checkhttps://www.pacific-ind.co.jp/csr/report/

Community support in Covid-19 pandemic
・90-year anniversary project:*Donation of PCR test car to Gifu-pref.
*Production of masks: Distributed masks to employees,
suppliers, and communities.
・30-year anniv. of Thai subsidiary: Donated "ambulance"with a partner

・CDP Climate Change Assessment
Acquisition of leadership level "A-"
Supplier engagement evaluation"Leaderboard" elected

・Support for TCFD, promote integration andinformation disclosure into climate change impact
strategies

25/37

3-10 Weave “OCEAN-22”as a Warp, “SDG Activities” as a Weft

思いをこめて、あしたをつくる
PACIFIC GLOCAL VISIONPACIFIC環境チャレンジ2050

OCEAN-22

SDGs活動事業活動

ステークホルダーとの信頼醸成

プレス・樹脂 バルブ製品
事業
製品事業

新製品
事業

製品を通じた社会・顧客課題の解決
環境負荷の極小化
30年目標：CO2排出量 50%削減

人財の尊重と活躍

PACIFIC VALUES 「夢と挑戦」「信頼と感謝」

26/37

3-11 Business Areas of Stamping & Molding Technologies
We supply body frame parts that ensure the strength and rigidity of the car body, high-design and high-performance resin parts, etc.

高機能製品
EV化ノイズの防音・防振GFRP・新素材開発

軽量化・骨格部品

高意匠樹脂
メッキレス
フィルム加飾防音・防振
ウレタン発泡技術

アルミ

衝突解析技術によるボデー構造提案
1470MPa材冷間プレス
量産技術確立FSW・各種接合技術

樹脂成形技術アルミプレスホットスタンプ
冷間超ハイテンプレス

サブASSY

プレス単品
小物プレス
プレス成形技術
金型・溶接・塗装・成形

コア技術

大物ボデー骨格
ASSY
機能部品

鍛圧プレス
Now

FutureStamping products（about 80%）
Main customers：
Toyota group
Other Japanese car manufacturers
Resin Products（about 20%）Main customers ：Toyota group
Other Japanese car manufacturers
27/37

3-12 Ultra High Tensile Strategy: Priority Measures
Body structure analysis technology contributes to collision safety andweight reduction of the vehicle bodyExpanding the area of stamping frame parts
Die

Production

Die

Production

・Promoted proposal of switching from hot to cold
Difference in CO2emissions due toconstruction
method*our estimate

・Developed 1470MPa material cold molding &mass-production technology
・Expansion of large body frame assembly parts
Hot stamping

Strengthening structure analysis andmaking effective proposals

Cold press

2024 Goal
25％

・Collision analysis / molding analysis /evaluation
・Expansion of analysis model, improvementof accuracy
・Optimal proposal for body structure（KPI）Changes in sales ratioof ultra-high-tensile products
to stamping products
28/37

3-13 Resin Technology Strategy：Priority Measures
Development of EV noise countermeasure products utilizing soundproofing and vibration-proofing technology
Strengthen competitiveness with eco-friendly film decoration technology

Urethane foam molding
technology

All urethane engine cover

Feature：Both weight reduction andsoundproofing performance areachieved.
Needs will increase with theintroduction of EVs.
Promote the development of noise
suppression products.

Film decoration ornament

Center ornament

Feature：100% recyclable byplating-less processing byfilm insert molding.
Both cost reduction and design
are achieved.

Noise area around the car

Wheel decoration parts
Feature：Attached to aluminum wheels to improve aerodynamic performanceand design

Aluminumwheel

Resin decorativeparts

Aluminum
wheel

Wheel cap

29/37

3-14 New Product Topics
Strategically develop new technologies and products, and promote adoption andmass production in sequence
Adopted cold pressed parts of 1470MPa material・Adopted for roof center reinforcement for Lexus NX

・22% lighter than before
・Promoted proposals to expand application to othervehicle types
Adopted GFRP engine undercover

Roof center reinforcement
Weight reduction contributes to lowering the height ofthe center of gravity and improving steering stability

・World's first adoption for SUVs
・76% lighter than before
・Received a project award from Toyota

・Received “the Mobility Related Parts Award” in [Super
Manufacturing Parts Award] by Nikkan Kogyo Shimbun

GFRP Engine under coverContributes to excellent running performance byprotecting the lower part of the body off-road

30/37

3-15 Business and Technology Areas of Valve Products
Develops and manufactures various valves using the fluid sealing technology cultivated in thevalve core, the founding product, as the core technology.
IoT・新領域

Tire valves・Market share Japan 100％,
Overseas 50％
・Main customers Domestic andoverseas tire manufacturers

ニーズを探し個別開発・提案
新分野への拡大
環境・省エネ・電動化の市場ニーズに則した機能製品創出

各種産業用制御機器バルブ
ニーズに合わせ個別開発・提案

新冷媒向け製品
圧力・流量制御・電動制御技術

タイヤバルブ・カーエアコンバルブで圧倒的地位を維持

タイヤバルブ

OE向けトップシェア維持
Schraderとのシナジー創出

センシング・電子制御・無線技術

Valves for industrial use
・For industrial machinery, aircraft, etc.
・Obtained by acquiring Schrader business

社会インフラとのコネクテッド

TPMS
流体シール技術
コア技術

Valves for Control equipment
・Charging valves, Relief valves etc.
・Main customers Car air conditioner
compressor manufacturers, piping
manufacturers

バリエーション展開
次世代製品開発
Now

機能追加システム提案

Aluminum die-cast products
Future(Produced in Korea)

31/37

3-16 Development and Sales Expansion of Control Valves
for Electrification
Accelerate the development of control valves for heat pump car air conditioners forthe progress of electrification
Changes in market needs
Changes in power train
De-engine / motor drive

Insufficient heat sourcefor heaters

・Increased needs for control valves such as electric
expansion valves due to the shift to heat pump car air
conditioners
・Delivered Prototype to local customers and promoted
evaluation

Heat-pump
air conditioners
Electric expansion
valve for BEV

Development/Sales system
・Accelerated development with 3 bases in Japan, US and Europe
・Understand customer needs in each region, create synergies fordevelopment and sales, and promote global sales expansion
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3-17 Technology development in new fields
Promoted new product development and new business development
including solutions by utilizing core technology《 Applied areas 》

Food transportation

TPMS coretechnology
Wireless / sensing
System overview

Alarm display※HACCP management method

Marketneeds
A demand formonitoring

TPMS transmitter Receiver

Medical goods
transportation※GDP Guideline

The livestock industry

TPMS transmitter
Built-in antenna / sensor

IT/Industrial arena
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3-18 New Product Applying Sensing Technology
Providing new value for logistics solutions“e-WAVES” , the multi sensing logger・It can sense temperature, humidity, vibration, position, barometricpressure, and illuminance・It checks the status of food and drug transportation in real time
データはLTE 網を利用しクラウドに格納

温度
湿度

位置

振動

気圧
照度

「e-WAVES」
・製品紹介ホームページ：https://www.pacific-ind.co.jp/iot/ewaves/

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１．Financial Results for Q2
２．Full Year Forecast for FY2021

３．Sustainability Management & Focus
４．New Plant Construction
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4-1 Constructed a New Plant in Higashi-Ogaki Plant
Established a global mother plant with an eye on carbon neutrality, strengthening
cost competitiveness in the medium to long term

Increased production of ultra-high-tensile stamping products forelectric vehicles
Incorporated measures for carbon neutrality
・A plant that pursues manufacturing efficiency
・A plant where employees can work lively

Aiming to reduce CO2
by 50% compared toconventional plants
・Plant building specifications

Place：Ogaki-city, Gifu-ken

・Plant driving force

Production item：Stamping products for automobiles

・High efficiency equipment

Land Space：80,000㎡

・Logistics system

Floor Space：43,000㎡（Stamping-Welding Plant)

・Renewable energy

Investment amount：13 billion yen
Beginning of construction on：Nov. 2021

New factory exterior image

Start of operation：mid-2023
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