(No explanation)

Automotive production by major customers fell sharply in Q1, due to the impact of the coronavirus. After
experiencing recovery in Q2, Q3 has marked an increase YoY in Japan, China, and North America. Our Q3
results were record highs for both sales and profits, due to lower line of balance and an increase in sales, as aresult of the profit improvement and fixed cost reduction activities that we have been pursuing since Q1.
Cumulative sales for the three quarters fell 12 points YoY, to JPY108 billion. Operating income declined by 27
points to JPY4.9 billion, greatly reducing the decline forecast in both sales and profits.

Both consolidated net sales and operating income decreased, due to a decrease in sales volume caused by
the impact of the coronavirus. Despite a decrease in the volume of our products, we have been improving
costs and cutting expenses more than in the previous year, resulting in an effect of JPY3.2 billion.

In the Press & Resin Business, following on from Q2, sales of Q3 also increased YoY. As a result, cumulative
sales for Q3 decreased by 10 points YoY to JPY75.5 billion. Thanks in part to improved profitability and efforts
to reduce fixed costs, operating income fell only by 3 points, to JPY1.8 billion, almost the same level as in theprevious fiscal year.
In the Valve Business, sales and profits decreased from the same period of the previous fiscal year up to Q2,
but sales and profits increased in Q3, due to transactions with several automobile manufacturers, parts
manufacturers, and manufacturers of industrial equipment other than automobiles, as well as businessdevelopment in Europe.
As a result, cumulative sales for Q3 fell only by 17 points YoY to JPY32.3 billion. Operating income decreased
by 37 points to JPY3 billion.

In each region, sales volumes recovered in Q3, but the impact from declines in automobile production on Q1
were significant. As a result, cumulative sales of Q3 declined in Japan, Europe, the US, and Asia.
I will explain the operating income.
In Asia, although sales decreased YoY, profits increased. This is due to higher-than-expected manufacturing
recoveries and the launch of new model car in China and Taiwan, which have improved the profitability of ourChinese and Taiwanese entities. The US and Europe posted losses on a cumulative basis for Q2, while Q3
posted profits on a cumulative basis as both the Press and Resin and Valve Businesses recorded profits. This
trend is expected to continue for Q4 as well.
In Japan, following Q2, production sales were strong for Q3, and the YoY decline forecast in cumulative Q3
was greatly reduced.

We have decided to revise our full-year earnings forecast upward because we have achieved record-highresults in Q3 and we assume that Q4 will continue to be on a recovery trend. Q3 results were generally firm,
but the degree of recovery varies by region and clients.
At present, it seems that the environment is extremely uncertain about the continuation of stable production
and sales, as the coronavirus infection is not settling down on various parts of the world, such as Japan, Europe
and North America. Therefore, we have forecasted the performance of Q4 based on the information available.
For the full fiscal year, we forecast net sales of JPY148 billion, an increase of JPY3 billion from the previous
forecast, and operating income of JPY7.5 billion, an increase of JPY1.5 billion from the previous forecast.

As in results of Q3, consolidated net sales and operating income both declined, due to a decrease in sales
volume caused by the impact of the coronavirus, but we are continuing efforts to improve costs and reduce
expenses more than in the previous year.
Assuming an exchange rate of JPY105 for Q4, the exchange sensitivity is JPY100 million per year for every JPY1.

As I explained earlier, we assume that Q4 will continue to be on a recovery trend. We are also continuingGroup-wide efforts to improve profitability and reduce fixed costs. As a result, the Press & Resin Business isexpected to record net sales of JPY104.5 billion and operating income of JPY3.3 billion. Also, we forecast salesof JPY43.3 billion and operating income of JPY4.2 billion in the Valves Business.

Sales in each region are expected to recover to a decline of approximately 10 points for the full fiscal year.
I will explain the operating income. In Asia, business in Q4 continues to be strong in China and Taiwan, butthe business during Q4 of the previous years also performed well. As a result, earnings are expected to decline
by about 20 points for the full fiscal year.
In the US and Europe, the recovery of Q3 is expected to continue for Q4, and the extent of the decline inprofits for the full fiscal year is expected to be reduced for about 50 points. In Japan, we forecast a YoY increasein profits at Q4, and expect to reduce the extent of the decline in profits for the full fiscal year.

Capital expenditures for the fiscal year under review were reduced by approximately JPY1.6 billion from theprevious forecast by identifying and implementing investments that is effective and essential at the same time.
Even in the aftermath of the coronavirus crisis, we are continuing to invest in future growth. In addition toinvesting in production preparation such as press dies, in North America, we are investing in building
extensions, hot stamps, and the introduction production lines for new type TPMS. In Japan, we are investingin large press machines, et cetera.
Depreciation and amortization is expected to increase by JPY900 million to JPY15 billion.

In the first half of this fiscal year, automobile production volume declined due to the impact of the coronavirus,
and in the second half, demand recovered more than expected and production fluctuations continued to belarge. In this context, we are working to improve earnings with a sense of speed.
At production sites, we are working to improve efficiency through the use of IoT and AI technologies, such as
reduction of handling by introducing image recognition at AI. Staff are reviewing communications using web
conferencing, reducing losses through reducing travel times, and pursuing man-hours for one person in theoffice engineering division. At the same time, we are reducing overtime, cutting costs, and reviewing capital
expenditures on a Company-wide basis.
In addition to such cost reductions and reductions in fixed costs, we are also developing new products withan eye on the future. We were also able to announce new products, such as multi-sensing loggers and thermocharging cables for electric forklifts, which enable real-time status checks during transportation by applying
TPMS's core technologies, such as radio technology and sensing technology.
Going forward, we will continue to allocate internal resources optimally and accelerate the development of
new technologies and products, in order to grow in existing areas and sow seeds in new areas.

To tackle social issues and continue to be a company needed by society, we are working Group-wide topromote sustainable management based on SDGs. Last year, in conjunction with our long-term vision, weidentified 15 materiality themes as four pillars and formulated the PACIFIC Environmental Challenge 2050 asa medium-to long-term target for minimizing environmental impact.
We have been continuously working to reduce our environmental impact, but we will strengthen our activities
in order to meet our challenging targets.
In the area of manufacturing, we will challenge to build a system adopted to a recycling-oriented society, suchas strive to reduce CO2 emissions by developing and introducing energy-saving facilities and improving
processes, reduce waste by recycling materials, use water resources properly, and introduce renewableenergy sources.
In addition, our activities to date have been highly evaluated, and in last year's CDP Climate ChangeAssessment, we received a leadership level of A minus.
Details of sustainable management can be found on our website in the Sustainability Report.
Going forward, production fluctuations are expected due to the impact of the coronavirus and worldwide
concerns about the supply of semiconductors. We will strive to prevent infections globally and maintain ourproduction system, while focusing on new domains and new product development, such as the electrification
field based on core technologies. We will aim for sustainable growth by improving profitability at present anddeveloping new products with an eye to the future.