In Q2, net sales increased by 12% from the previous quarter to a record high of JPY102.6 billion, mainly due
to an increase in sales volume resulting from the continuing recovery trend in automobile production and theexchange rate difference resulting from the depreciated Japanese yen.
As for profits, operating profit increased by 188% YoY to JPY7.4 billion due to the increase in sales volume aswell as ongoing cost improvement and fixed cost reduction activities. Ordinary profit increased by JPY86% toJPY10.3 billion, and net profit increased by 82% to JPY7.5 billion, both record highs for the two-quarter
cumulative period.

Net sales increased by JPY11.7 billion YoY to JPY102.6 billion, mainly due to an increase in sales volume andthe positive impact of foreign exchange rates resulting from the continued depreciation of the Japanese yen,despite the negative impact of JPY15 billion resulting from the for-fee stamping steel procurement.

Operating profit increased by JPY4.8 billion from the same period last year to JPY7.4 billion due to the increasein sales volume and promotion of cost improvement, despite the negative effects of material price hikes andother factors and increased labor costs and expenses due to increased material volume.

In the stamping and plastic molding business, net sales increased by 16% YoY to JPY74.1 billion, and operating
profit rose JPY5.3 billion to JPY5.5 billion due to an increase in material volume.
In the valves business, sales increased by 5% to JPY28.4 billion due to the impact of depreciation, while
operating profit decreased by JPY0.4 billion to JPY1.9 billion due to material price hikes, although the volume
of products was on par with the previous year.

Sales in Japan were flat YoY at JPY34.1 billion, with operating profit up JPY2.2 billion to JPY3.8 billion.
Sales in Europe and North America increased by 24% YoY to JPY47.3 billion, with operating profit up JPY1.8
billion to JPY1.5 billion.
Sales in Asia increased by 10% to JPY21.1 billion, with operating profit up JPY0.2 billion to JPY1.4 billion.

Based on the results over the two quarters, as well as the changes in customers' production plans and otherexternal environment shifts, we upwardly revised our full-year forecasts.
Compared to the numbers announced on July 27, sales were revised to add JPY8 billion to reach the total of
JPY198 billion.
Operating profit was revised upward by JPY1.5 billion to JPY12 billion. Ordinary profit was revised upward by
JPY1 billion to JPY15 billion, and net profit was revised upward by JPY1 billion to JPY10.5 billion.
The assumed exchange rate for H2 of the fiscal year has been changed from JPY130 to the US dollar to JPY140.
The exchange rate sensitivity is JPY100 million per JPY1 per year.

For the full year, we forecast net sales of JPY198 billion, up JPY6.7 billion from the JPY191.2 billion in theprevious year, mainly due to a JPY20.7 billion increase in sales volume and a JPY7.5 billion increase in sales
due to the impact of the price of materials, although we expect a JPY24.7 billion decrease in sales due to the
production orders that include for-fee stamping steel procurement.
Please note that this JPY24.7 billion decrease as a result of the for-fee stamping steel procurement, the JPY7.5
billion increase in material prices, and the JPY3.9 billion increase in foreign currency exchange will have no
impact on profit.

Operating profit for the full year is expected to be JPY12 billion, an increase of JPY5.5 billion due to increased
volume and JPY2.7 billion due to cost improvement, despite the negative impact of labor, expenses, andmaterial prices.

Net sales for the stamping and plastic molding business are projected to increase by 4% from the previous
year to JPY142.5 billion, and operating profit is projected to increase by JPY3.4 billion to JPY8.4 billion due toan increase in sales volume.
We forecast net sales in the valves business of JPY55 billion, unchanged from the previous year, due to ourassumption of JPY140 as the exchange rate applicable to H2, and an operating profit of JPY3.6 billion, down
JPY0.6 billion, due to higher procurement prices of parts from overseas caused by the weakened Japanese
yen and the assumption that material prices will continue to soar.

We expect net sales in Japan to decrease by 3% from the previous year to JPY68.5 billion and operating profit
to increase by JPY0.9 billion to JPY5.9 billion due to the positive effects from increased material volume,
despite the negative effects from increased labor and expenses, soaring valve material prices, and the startof depreciation related to investments in plant construction in H2.
We forecast a 12% increase in sales in Europe and North America to JPY88 billion and a JPY2.9 billion increasein operating profit to JPY2.8 billion due to a recovery in sales volume and foreign currency exchange
differences resulting from the depreciated Japanese yen.
Effective from the current fiscal year, the amortization period for stamping machines owned by the US
subsidiary has been revised from 7 years to 15 years. As a result of this change, depreciation and amortization
expenses are expected to decrease by approximately JPY1.5 billion from the previous level.
In Asia, we forecast net sales of JPY41.5 billion, down 2%, and an operating profit of JPY2.6 billion, down JPY1
billion, assuming a decrease in sales volume in China.

In FY2023, we plan to invest JPY38 billion, including the construction of a new stamping plant in the Ogaki
area and the preparation for the production of electric expansion valves for battery EVs.
In response to an increase in orders from customers, we will increase our production capacity and also invest
in building a more efficient production system to strengthen our competitiveness.

We revised our forecast for dividend considering the Q2 results and the full-year forecast.
The interim dividend will be JPY22, an increase of JPY2 from the April announcement. The year-end dividend
is expected to be JPY22, for a total annual dividend of JPY44.
The payout ratio for the full year is expected to be 24.6%, and the total return ratio is expected to be 37%,
including the JPY1.2 billion sharebuyback implemented in April.

In April of this year, we announced our medium- to long-term management concept, Beyond the OCEAN, andour medium-term management plan, NEXUS-26. We positioned PURPOSE, which is Passion in Creating
Tomorrow, as the axis of our management philosophy.
To drive diverse employees to demonstrate capabilities to create new value, along with the materiality ofsustainability, we will share a comprehensively built management plan that is shared with all the divisions of
the Group and reflected in policies and plans to be used by business units that engage in operations.
We will also promote sustainable management to attain PURPOSE while holding PACIFIC VALUES, which
consists of the founding spirit, company motto, and our mind-set, as our underlying values.

The materiality of sustainability is connected to the three key words of PURPOSE and consists of four pillars
and 15 key issues.
Related SDG themes are also identified and addressed. Of these, those themes that we consider particularly
important and have a significant impact on corporate management are integrated with our management
objectives and prioritized in our efforts.
In materiality through business, we have set the ratio of sales for electric vehicle uses as a goal that ties to thedevelopment of environmentally friendly products, which has a particularly high impact on our core business.
To create new value, we also set a target for the number of new products and services to be launched relating
to a contribution to a sustainable mobility society and affluent lifestyles.
In addition, to minimize environmental impact, we are working to reduce CO 2 emissions as a management
goal.
We are also promoting initiatives to improve employee engagement as a goal related to the respect andsuccess of our human resources, which is important for us to become a company that creates tomorrow with
passion.

The medium- to long-term growth vision envisioned in the Beyond the OCEAN medium- to long-term
management concept and the NEXUS-26 Medium-term Management Plan is shown here.
By enhancing the foundation, we will create value in both financial and non-financial aspects by leveraging
business strategies and connecting them as an integrated management strategy to attain PURPOSE.

As for management goals, we have established goals based both on financial value and non-financial value.
Our financial value targets are JPY210 billion in sales, 7% in operating profit, and 8% in ROE for 2026 to achievesustainable growth, profitability, and capital efficiency thereafter.
As for non-financial value targets, the value targets related to the business are to increase the percentage ofsales for electric vehicles to 70% by 2030 and to launch 35 new products and services in new fields.
In addition, our sustainability value goals are to increase employee engagement and reduce the emission ofCO2.
By advancing efforts toward these goals, we aim to achieve sustainable growth and the attainment of
PURPOSE.

While we received a boost from strong automobile production and foreign exchange trends, efforts to develop
and expand sales and other initiatives aimed at medium- to long-term growth, as well as efforts to improve
profitability, are also making steady progress.

In the stamping business, we are working to increase sales by expanding lightweight products for
decarbonization and to improve profitability by strengthening cost competitiveness.
In particular, the cold stamping method, in which we excel, is superior to the hot stamping method in reducing
CO2 emissions during production, and we are promoting proposals to replace the hot stamping method withthe cold stamping method.
In addition, we are also making proposals to our customers to expand the adoption of our ultra-high tensile
strength technology in the battery peripheral area in battery EVs.
We will contribute to decarbonization and safety through the development of higher value-added
technologies and products.

By further advancing our structural analysis technology for each skeleton unit and actively making proposals
from the early stages of our customers' vehicle development projects, we can accomplish optimal structuresthat achieve both lightweight and high rigidity, thereby contributing to our customers and building
relationships of trust.
Through these activities, we were able to win large orders to provide major body parts for the Crown andPrius models of Toyota Motor Corporation.
For example, the front pillar upper, which was adopted for the new Crown model last year, is a component
that requires high rigidity from the viewpoint of collision safety and a long, narrow, complex shape and highprecision for the vehicle design and driver's visibility. Until now, hot stamping has been the only
manufacturing method available for these parts.
We have succeeded in cold stamping ultra-high tensile steel and achieved mass production through proactive
proposals for cold stamping and preliminary studies, including CAE analysis, to identify issues and takecountermeasures.
Many other car molds are also adopting ultra-high tensile steel, and we have mass-produced a cumulative
total of more than 300 cold-formed ultra-high tensile steel products.
In addition to technological development, we aim to further expand our business in the future by utilizing theultra-high tensile strength stamping facilities that we will establish globally.

In the stamping business, a particularly large strategic investment is the stamping plant built in the HigashiOgaki area.
Construction of a stamping factory and an employee welfare building has been completed by the end of
October, and operations began sequentially in November.
The plant is equipped with enhanced stamping machinery, automated welding lines, renewable energy, andan improved working environment, enabling the facilities to match the demands of the modern world.
From next year onward, we will build an industrial machinery building to enhance the competitiveness of ourstamping dies and a development center to strengthen our development capabilities for plastic molding and
IoT and other products, thereby creating an environment for the achievement of sustainable value creation.

The plastic molding business is positioned as a growing business that can expand sales to a wide variety ofcustomers because of its diverse strengths, including design and evaluation capabilities from material
formulation, and an in-house integrated system from planning and design to production.
By applying our strengths in soundproofing and film decoration technologies, we will create new markets andstrengthen our materials development capabilities, aiming for long-term growth and a shift to a circular
economy.

In the plastic molding business, we are pushing forward with the development of new customers globally inresponse to new needs arising from the expansion of the electric vehicle market.
For example, motors and compressors of electric vehicles generate unique noises, and there is a growing needfor soundproofing vehicles from such electric noises.
We would like to expand our business domain by meeting such needs because we have the technology to use
the right material in the right part of the body and create the right shape, for example, by changing the densityof the material depending on the sound range.
The soundproofing cover on the left side of the slide has already been adopted, and we will leverage ourexisting customer base to expand sales to automobile manufacturers and mega-suppliers in the future.
Recently, more and more aluminum wheels are also adopting wheel caps with the aim of both improving
aerodynamic performance and reducing weight.
Even for models such as the Prius and bZ4X, which require particularly high fuel efficiency and electricalperformance, we are responsible for everything from wheel cap design to production, contributing to theimprovement of the vehicle's product appeal.

The valves business offers valve products designed in-house and has the world's top market share for several
products.
As a focus theme of the medium-term management plan, we intend to grow this business as a new businessby introducing new products that utilize sealing technology, especially with a view to electrification.
In the TPMS business, we are also working to expand sales by aggressively proposing TPMS to new customers
to increase the volume of products sold while promoting efforts to improve profitability.
In addition, we are reforming existing businesses by optimizing production and development sites globallyand improving productivity through digital innovation.

The motorized expansion valve, a valve for thermal management systems, functions in a heat pump system
to expand the refrigerant and bring it to a low temperature and low pressure.
The product we developed was adopted for battery cooling and production started in April. These products
are compact, lightweight, and of high quality, satisfying the performance requirements of customers.
Since multiple other expansion valves and peripheral valves are also widely used in thermal management
systems, the market is expected to expand, and we are continuing to develop and expand sales to increase
their adoption.
We will also collaborate with the development and sales departments in the US and France to create atrilateral cooperative system for development and sales expansion in the three regions of the world to meetthe growing needs of our customers on a global scale.

TPMS has expanded its business scale as the market has grown with legalization in various countries. However,
because the market has expanded, price competition has been intensified, which presents a profitability
improvement as a key challenge to overcome.
When installing equipment for the launch of a new type of product last year, we kept the same production
capacity and versatility while reducing the capital investment to half that of the previous model and also
reducing the space requirement to half. CO2 emissions during production have also been reduced by 42%.
We will continue to strengthen our earning power by developing new customers that will expand our sales
volume while also placing importance on steady and continuous improvement activities.

In the development of new products outside the mobility field, we continue to take on various challenges tocreate a pillar of our business over the long term.
As a goal for 2030, we would like to make the data business utilizing wireless, apps, cloud, AI, and big data thepillars of our new business.
We will broaden our business domain with a focus on businesses that contribute to society and solve social
issues.
In the logistics, livestock, infrastructure, and lifestyle-related businesses that are already on the market, we
will deepen these businesses by expanding our product lineup and improving their functions.
We also hope to solve social issues by creating products and services in completely new fields.
For this purpose, we launched a new business creation project called Omega Project, in which more than 100
people participated and nearly 100 ideas were submitted. Seven of these projects have advanced to the next
step, and we are in the process of deepening our discussions on business creation.
By promoting these initiatives, we aim to achieve sales of JPY10 billion and an operating profit of JPY2 billion
by 2030.

We will introduce products in new fields that we have commercialized so far. Both of these products utilize
core technologies, such as sensing and wireless technologies developed for the TPMS business, including
software.
“e-WAVES,” which can sense temperature, humidity, and other parameters, is used in a wide range ofindustries, including HACCP-compliant food transportation, transportation of vaccines and otherpharmaceuticals, and regenerative medicine.
In January next year, we plan to sell a low-priced model with reduced functions and prices to expand sales,
and we continue to expand our product lineup to meet the needs of a wide range of industries.
“CAPSULE SENSE,” a cow’s health monitoring system launched last year, measures temperature andacceleration in the stomach and monitors changes in the physical condition of cows in real-time. The producthas been highly evaluated as a product that supports livestock farmers in improving productivity through IoT
and contributes to issues, such as the reduction of burdens and the shortage of bearers of livestock.
In order to continue to serve a wide range of farmers, we are promoting sales expansion activities throughout
Japan, from Hokkaido to Okinawa. In parallel, we are also working on development to improve performanceand expand our product lineup, such as by improving algorithms to increase the accuracy of detecting changes
in physical condition, thereby strengthening our product lineup.

Minimizing environmental impact, one of the pillars of materiality, is an important issue for the manufacturingindustry, and we are working on it as a long-term goal under the “PACIFIC Environmental Challenge 2050.”
In particular, the reduction of CO2 emissions is an important theme, and we have set this as a management
goal and will accelerate our efforts with the introduction of daily improvements, innovative technologies, andrenewable energy.
Regarding waste emissions reduction, we would like to shift to a recycling-oriented business to minimize
waste emissions by 2050.
Regarding the conservation of water resources, we would like to reduce risk and contribute to the local
community in a regionally appropriate manner at each location.

As part of our efforts to reduce waste and promote a circular economy, we have developed an upcycled
disaster prevention mat that utilizes urethane product scraps generated during the production of plastic
molding products.
Under normal circumstances, the product is used as a cushion for school chairs, but in an emergency where
the school becomes an evacuation center, it can be used as a mat by connecting them, improving the living
conditions inside the evacuation center. The beauty of this product is that it can be used regularly in schools,
so it can be used to prepare for disasters even if you do not have special space for storage.
We believe that our products can contribute to solving social issues from the perspective of the local economy
and social welfare, as materials processing and parts manufacturing are performed by local companies andassembly is performed at a nearby welfare workshop.
In cooperation with Ogaki City of Gifu Prefecture, we are conducting demonstration tests at elementary
schools in the city, and we plan to commercialize the product next spring.

A human capital strategy is important to attain PURPOSE and create value for the business and sustainability.
Among these, employee engagement is at the heart of our human capital strategy, and we believe thatenhancing this strategy will lead to a virtuous cycle of enhanced measures that lead to business growth andincreased vitality, which will in turn increase engagement.
The key to this is to increase psychological safety and to create a workplace where everyone can say what
they think and practice what they do. To achieve this, we not only conduct engagement surveys, but also holdbriefings for employees and small opinion exchange meetings to share ideas about PURPOSE, the mediumterm management plan, etc., and continue to plan and implement opportunities for each employee tohonestly discuss what he or she thinks daily.
In addition, we are promoting initiatives, such as showing one's preparedness daily and improving mutual
understanding through the sharing of My Purpose.
There is much to be gained from internal communication, and I intend to use it not only to improve theworkplace environment, but also for future management by correctly understanding the thoughts of all
employees.

We decided to publish the “Creating Tomorrow Report” as an integrated report starting this year tocommunicate our value creation through integrated thinking in line with our PURPOSE, mid- and long-term
management concept, and medium-term management plan. As the name suggests, this report expresses ourcompany's purview of creating tomorrow with all our hearts and minds.
In addition, the existing “Sustainability Report,” which describes the progress of our sustainability efforts, isdisclosed on our website as the “Sustainability data book 2023.”
We hope you will take a look at it, as it is positioned as a communication tool to help you better understandour value creation and foster trust in both directions.
We will continue to pursue medium- and long-term growth and integrated efforts to solve customer and social
issues, aiming to enhance corporate value.