FY2023 Second Quarter
Financial Results Briefing
The 100th period：Apr. 1st, 2023- Sep.30th, 2023

Nov. 6th, 2023

Contents

１．FY2023 Q2 Financial Performance
２．Financial Forecast (FY2023 Full Year)
３. Medium-term initiatives
Cautionary Statement with Respect to Forward-Looking Statements
These materials contain forward-looking statements that reflect our current expectations. These forward-looking
statements are not guarantees of future performance. It involves any risk depending on the Japanese orinternational economic situation, business trends related to our company, fluctuation of exchange rates and otherfactors. It may cause our actual performance to be materially different from any future results announced.

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1-1 Q2 Consolidated Financial Summary
Record highest were achieved for sales, ordinary and net income
due to increase in higher automobile production.
（100 millions of yen, ％）

22/２Ｑ

23/２Ｑ

Cumulative
ResultCumulative
Forecast on 27Jul.

23/２Ｑ
Cumulative
ResultGain&Loss% Change

Gain&Loss% Change

1,026+117＋12.9+51＋5.3

74+48＋188.0+19＋36.3

7.3%+4.4P－+1.7P－103+47＋86.4+25＋32.5

10.1%

+4.0P

－+2.1P－

75+33＋82.3+25＋50.6+2.8P－+2.2P－

Sales909

975

RecordOperating Income

2655

Record

2.9%

5.6%

5578

Ordinary Income Ratio

6.1%

8.0%

Net income attributable toowners parent

4150

Quarterly Net Income margin

4.5%

5.1%

7.3%

Average exchange rate（U.S. dollars）¥129.8¥132.8¥139.9Operating Income Ratio

Ordinary IncomeHighHigh

RecordHigh

RecordHigh

Diff. from Forecast

YoY rate

FY2023

FY2022¥10.1－¥7.1－*Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials for stamping. As a result of this,fiscal 2023 2nd quarter cumulative results includes a 15 billion yen year-on-year decline in net sales. No impact on income.

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1-2 Analysis of Q2 Cumulative Results: Consolidated Sales

Record high for 2Q due to increase in sales volume more than decrease insales due to the impact of customer-received steel materials for stamping.
( 100 millions of yen )Exchage
Exchange
MaterialPricecustomer-received909

Conversionsteel materials

Gain+31,026+34+61for stamping
Sales
Volume△150Selling+172

Price△3FY2022
Q2 CumultiveResults

FY2023

Sales ＋11.7 billion yen

Q2 Cumultive
Results

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1-3 Analysis of Q2 Cumulative Results: Operating IncomeCosts increased due to sales volume up. Record-high profit for Q2 due toincreased sales volume and cost improvements.
( 100 millions of yen )Depreciation
Cost(excl.dies)

Improvement+4

Exchange

Gain74+3+14Sales

26

VolumeMaterial
Price+51

Labor△10CostSelling△8Price△3Expenses△2FY2022
Q2 Cumultive

Results

FY2023Operating Income+4.8 billion yen

Q2 Cumultive

Results

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1-4 Q2 Cumulative Results by Business Segments
Sales and profits increased in the stamping and plastic molding business due to increased
sales volume. Sales of valves increased due to exchange conversion, but profits decreased
due to increased costs due to high material prices.
（100 millions of yen,％）SalesStamping &Plastic Molding

Operating Income

22/Q2

23/Q2

YoY Rate

22/Q2

23/Q2

YoY Rate

ResultResultGain&Loss %Change

ResultResultGain&Loss %Change

638741

155+53

0.3%

7.5%

+7.2P

2319

△48.8%

6.9%

△1.9P

*(The Impact of increased
customer-received materials forstamping)+103+16.2(△150)

Operating Income Ratio

Valves-269

Operating Income Ratio

284+14+5.3△18.3*Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel
materials for stamping. No impact on income.

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1-5 Q2 Cumulative Results by Region
Sales and profits increased due to increased sales volume in Japan,Europe, America, and Asia.

（100 millions of yen,％）Operating Income

SalesJapan

23/Q2

ResultResultGain&Loss338341+323/Q2%Change

ResultResultGain&Loss%Change+0.9

1538+22+145.1

4.6%

11.2%+6.6P△315+18△0.9%

3.2%+4.1P

1114+26.0%

6.7%+0.7P※(The Impact of increased
customer-received materials forstamping)(△150)

Operating Income Ratio

Europe & America

379

473+94+24.9

Operating Income Ratio

Asia
Operating Income Ratio

YoY Rate

22/Q2

YoY Rate

22/Q2

191

211+19+10.4-+22.6

Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials for stamping.
No impact on income.

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１．FY2023 Q2 Financial Performance
２．Financial Forecast (FY2023 Full Year)

３. Medium-term initiatives

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2-1 Full Year Financial Forecast
Revised the forecast upward to reflect the 2Q results and latest information, expecting
record highs for both sales and profits.
（ 100 millions of yen, ％）FY2022

FY2023

YonY rate

Diff. from 27th Jul.

Full Year

Full Year

Full Year

Full Year

Forecast on
27th Jul.

LatestForecast

Gain&Loss%Change

Gain&Loss%Change

1,912

1,900

1,980

*3 +67

3.5%

+80

4.2%

Operating Income

92105

120+2729.1%+1514.3%

Operating Income Ratio

4.9%

5.5%

6.1%+1.2P－+0.6P－

Ordinary Income

132

140

150

+17

13.6%

+107.1%

93

95

105

+1112.9%+1010.5%

ＲＯＥ

7.0%

6.6%

7.1%+0.1P－+0.5P－ＲＯＡ(Operating income basis）

3.7%

3.9%

4.5%+0.8P－+0.6P－

Net Assets per Share¥2,309¥2,590¥2,712

¥403

17.5%

¥122

4.7%

Average exchange rate (US dollars)¥134.9¥131.4 *2 ¥140.0¥5.1－¥8.6－Results

SalesCurrent Net Income *1*1 Current net income is the current net income attributable to the parent company shareholders.
*2 Reconsidered exchange rate assumptions from the third quarter onwards. The current forecast has been revised to 140 yen to the dollar,
from the previous announced price of 130 yen to the dollar on July 27.
*3 Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of steel material costs
procured from customers. As a result of this, fiscal 2023 includes a 24.7 billion yen year-on-year decline in net sales. No impact on income.

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2-2 Analysis of FY2023 Forecasts: Consolidated Sales
The decrease in sales due to the impact of customer-received steel materials for stamping
will be offset by the increase in sales volume, which is expected to reach a record high.
Material

Exchange

Exchange gain

Conversion

+3

Price

1,912

（ 100 millions of yen）

1,980

+39+75

Customer-receivedsteel materials

Salesfor stamping

Volume△247
Selling+207

Price

3Q以降
為替前提140円/$△10FY2022

Sales ＋6.7 Billion yen

FY2023
Forecast

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2-3 Analysis of FY2023 Forecasts: Operating Income
Costs increased due to sales volume up. Expected to reach record profits
due to increased sales volume and continued improvements.
(100 millions of yen)
Cost

Depreciation Exchange(excl.dies)gain

Improvement+4+3120

Labor92

CostSales
Volume△21+27Expenses
Material△16Price△15Selling+55

Price△10FY2022

Operating Income +２.７billion yen

FY2023
Forecast

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2-4 Forecast by Business Segments
The stamping and plastic molding business is expected to increase sales and profits due
to an increase in sales volume, while the valve business is expected to see an increasein sales and a decrease in profits.
（100 million yen,％）
Sales

Operating Income

FY2022

FY2023

YoY Rate

ResultForecast

Gain&Loss

Stamping &Plastic Molding

1,368* 1,425+56(The Impact of increased
customer-received materials forstamping)(△51)(△298)(△247)FY2022

FY2023%Change

ResultForecast

Gain&Loss%Change+4.2

4984+34+68.7

3.6%

5.9%+2.3P

4236△67.9%

6.5%△1.4POperating Income Ratio

Valves542

Operating Income Ratio

550+7+1.5

YoY Rate△15.5*Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materialsfor stamping. No impact on income.

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2-5 Forecast by Region
Sales and profits are expected to increase substantially in Japan, Europe
and the America, while sales and profits are expected to decline in Asia.
（100 millions of yen,％）SalesJapan(The Impact of increased
customer-received materials forstamping)Operating Income

FY2022

FY2023ResultForecast

Gain&Loss706685△21(△298)(△247)(△51)*YoY Rate

FY2022

FY2023%ChangeResult

Forecast

Gain&Loss%Change△3.04959+9+18.2

7.1%

8.6%+1.5P△128+29△0.2%

3.2%+3.4P

3626△108.7%

6.3%

△2.4P

Operating Income Ratio

Europe & America

781880+98+12.7

Operating Income Ratio

Asia

425

Operating Income Ratio

415△10△2.4

YoY Rate-△29.5* Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materialsfor stamping. No impact on income.

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2-6 Capital investments and Depreciation
Aggressive investment in new stamping plants and production lines for new valve
products.
Depreciation
Capital investment380
2030（100 million of yen）

235
Asia
Europe＆America

229

2149

162
1861

Japan

164
84
'19

（100 million of yen）

'20

181
27

23

44

330

35

119

'21

163

'22

Forecast'23（予）

142

146

25
33

23
38

165
26
46

84

85

92

'19'20'21

182

188

27

26

55

40

100

121

'22'23(予)Forecast

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2-7 Shareholder ReturnDividend forecast revised in consideration of Q2 consolidated results
and full-year forecast. Accomplished share buyback in April with theaim of increasing shareholder returns and capital efficiency.
(Yen)

Japan Credit
Rating InstituteLong-term
issuer rating
A-Stable

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１．FY2023 Q2 Financial Performance
２．Financial Forecast (FY2023 Full Year)
３. Medium-term initiatives

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3-1 Philosophy System
In order to realize our purpose, we incorporate it into each policy and carry out
sustainable management.

Passion in Creating Tomorrow
PURPOSE

Code of conduct
PACIFIC

Environmental

Sustainability
Material topics

Challenge2050
Mid to Long-term
Business Plans
Mid -term Business Plans[ Beyond the OCEAN ]Purpose[ NEXUS-26 ]The Pacific Group Annual Policy
Safety and health policy

Environmental policy
Quality policy
Other policies by position
Officer/department manager policy

Diverse employees
demonstrate their strengths
and create new value

Individual implementation plan
Thoughts on founding Company policy Our Attitude

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3-2 Sustainability Material Topics
Integrate management targets and materiality, raise priorities and promote initiatives.

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3-3 Mid to long-term growth vision
By strengthening our foundation, we will leverage our business strategies and create value
in both financial and non-financial terms.

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3-4 Management Targets
Aiming to realize sustainable growth and purpose through financial value targets
and non-financial (business/sustainability) value targets.

20/36

3-5 NEXUS-26 Target & Progress
Initiatives for mid to long-term growth areprogressing smoothly.

or moreor moreOperating profit ratio

198

Sales Trend

Sales

Revenue Recognition Adjustment

100 millionof yen

41.5

55

88

142.5
68.5

ForecastTarget

FY2022Results

FY2023
Forecast

FY2026
Target21/36

3-6 Stamping Business Strategy
We will improve our development and production technology capabilities and contributeto decarbonization and improved safety. Improve profitability by creating high added
value and being cost competitive.

22/36
22/32

3-7 Replacement of hot stamped products with cold stamping
Build trusting relationships with customers through advanced structural analysis technology
and proactive proposals.
Our 1470MPa cold ultra-hightensile strength parts are usedin the new Prius.

Succeeded in achieving 1180MPa
cold super high tensile strengthwith the new crown.

・Optimal shape considering productivityof the entire manufacturing process
・Win a project award of Toyota Motors

・Achieves High rigidity and better
vehicle design for driver’s visibility
・Win a project award of Toyota Motors
CostReduction

40%

Roof center reinforcement made of 1470MPa material

Add bead to reduce
residual stress

Resource
saving67%

CO2Emission

239t Reduction*Compared to the same part ofthe old crown (hot stamped product)

Improving quality
accuracy bydevising theshaping process

Utilize simulation
results for mass
production dies

23/363-8 New Stamping Plant completed
New state-of-the-art global mother factory established to realize sustainablevalue creation.

approx.

92,000㎡

approx.48,000㎡

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3-9 Molding Business Strategy
Leverage our strengths to create new markets globally and strengthen our highly
competitive plastic molding business.

25/36
25/32

3-10 Plastic molding products that meet new needs for electrified vehicles

Improving our strengths in soundproofing and aerodynamic control technologies
and promoting their adoption in electrified vehicles globally.
Soundproof cover in mass production

3.5dBOr more

以上の防音効果Soundproofing

Aerodynamic cap for aluminum wheels* Results using our soundmeasurement equipment*当社測定機器での結果

Strengtheffect *bZ4X
EffectSoundproof cover for electriccompressor

Frequency

Achieves both “light weight” and “improved aerodynamicperformance” and also improves electric power consumption
rate.

bZ4X

Prius

Promote sales expansion to new customers
Automotivemanufacturer
Mega
Supplier

ACompany

Current major
customers

BCompany

C Company（Supplied to global carmanufacturers）

Aluminum wheels Our Products

Aluminum wheels Our Products

26/36

3-11 Valve Business Strategy
Building a new pillar of growth by developing high value-added products forelectrified vehicles.

27/36
27/32

3-12 Valves for thermal management systems
Started mass production of electric expansion valves for BEVs, promoted development andsales expansion and lineup expansion.
Thermal management systems

Batterynonreturnvalve

Battery cooling System（Water circuit）

Heatexchanger

Heat
exchanger

Expansion
valve

Heatexchanger

Currently
Expanding
Sales

Heatexchanger

Heat pump air conditioner（Refrigerant circuit）

World's smallest class compactand lightweight design combines
both functionality and quality

Expansion
valve

Currently
Expanding Sales

Mass production of electric expansion valves

In mass
production

Focusing on automation, processing
points, and flow lines, pursuing highprecision, high productivity, and lowest
cost

Promote development and sales expansion in a world-widetrilateral system
Water Valve
Under development

・Increased adoption of heat pump systems due to improved
electric power consumption rate and increased needs forEurope
Developing awide range ofproductlineups

Japan
Oversight of coretechnology
development andoverseas
expansion

USA
Sales expansion
activities, newcustomer
developmentthermal management
・Increasing demand for electric expansion valves for controllingrefrigerant in systems

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3-13 Compact general-purpose TPMS production line
Improved the production line for our main product TPMS.

Capital investment amount is １/2.Uses 1/2 space.
Achieved 42% reduction in CO2 emissions.

3. General-purpose equipment
Achieving goals while
maintaining production
capacity
1. Miniaturization throughin-house production
We produce threepieces ofequipment inhouse, including
the board feeder,
and downsize
them.

2. Integration of twofurnaces
Improved
process layout
and control,
integrated
furnace.

Product transport jigs
and receiving jigs havebeen improved and mademore versatile.

4. Abolition of room temperature bathMoved the roomtemperature
inspection process toa later stage. Cool theproduct naturally

Horizontal expansion
to overseas bases

China：Changshu
Apr.2022：E typeproduction started
Oct.2022：G typeproduction started

USA：Ohio
May.2023：G typeproduction started

29/36

3-14 New Products development
Developing IoT products and systems that contribute to solving social issues andaim to achieve goals.

30/36
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3-15 IoT Products to solving social issues
Promote functional improvement and sales expansion of new products and solutions.

“e-WAVES”
Multi Sensing Logger“CAPSULE SENSE”
Cattle body condition monitoring
System overview

App.

Body
temperature

Activity

・Real-time logistics management with 6 sensors such astemperature and humidity
・Meets a wide range of industry needs for food,
pharmaceutical and regenerative medicine

・Low-priced model will be launched in Jan. 2024.

・Monitoring the physical condition of cattles using temperature andacceleration sensors
・Supporting productivity improvement with IoT for future livestock
farming・Promoting sales expansion activities in various regions and development
aimed at improving performance
31/36

3-16 Efforts to Minimize Environmental Impact
・Setting milestones and promoting activities under “PACIFIC Environmental Challenge 2050.”
Material
Topic

CarbonNeutralMitigation
andadaptation toclimatechangeSDGs

Item

Current
Status(FY2022)CO2emission

Wasteemissions▲19.3％
Compared to
FY2019Japan▲11.8％
Overseas▲7.9％
Compared to
FY2019Minimize
Environmental

Load

Conservationof waterresources

FY2050TargetCompared to
FY2019NetZeroFY2030 Target
CO2 emissions・・・・▲50%Renewable energy usage ratio・・・20%

76.1(kt)

3,625(t)Sustainableresources use

FY2030TargetWaterUsage

1,394(k㎥)▲20.1％
Compared toFY2019

Japan60％
Overseas30％
Reduction

Minimum
Usage

Compared toFY2019

ProperUsage

Examples of initiatives：

Minimum
Usage

・Zero carbon electrical energy at Thailand
subsidiary
・Turning waste plastic into material at theWakayanagi Plant
・Reducing water usage by downsizing
electrocoating equipment

32/36

3-17 Circular economy initiatives: Emergency mats
Practical use of upcycled waste products in collaboration with local companies and welfare workshops.

Concept(MATOMAT)

School chaircushionEasy to combine
and disassemble

No storage spacerequired

Ogaki City, Ogaki City Board of Education, andour company conclude a demonstration
experiment agreement

Combine multiple items
in case of emergency.

Upcycling process

Scraps of urethane products

GrindingChips

Compression

Chip molded product 33/36

3-18 Respecting human resources and their active participation（Human resources strategy）
Drive purpose and strategy into actionable initiatives.
PurposeHuman resource strategy

All employees create new value
with their “passion”Addressing important themeswith employee engagement at
the corePu
rpo
Passionin CreatingS

Tomorrowe

Human
Resource
development

Safety＆Health

D＆I(Diversity)

Strengthen
engagement

Improving
the working
environment

Respect forhuman rights

・Vision sharing: Executives take the lead in holding repeated briefings and opinion exchange
meetings for employees.
・My Purpose : Conduct activities to deepen mutual understanding by having employees
think about their own purpose and share it with colleagues.
・Engagement : Conducted the first employee engagement survey, determined target values,and implemented improvement measures
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3-19 Published integrated report and sustainability data bookEvolving the “Sustainability Report” and disclosing our value creation story
through integrated thinking.
Integrated report ”Creating Tomorrow Report””Sustainability data book 2023”

https://www.pacific-ind.co.jp/sustainability/sr/

https://www.pacific-ind.co.jp/investor/ctr/

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