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Financial Results Briefing
for FY2020
The 97th period：（Apr. 1st, 2020-Mar. 31st, 2021）

April 30, 2021

A table of Contents

１．Financial Results for FY2020

２．Full year forecast for FY2021
３．Approaches for Mid-Term
４．Sustainability Management
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.

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3/34

An Outline of Our Business and Main Products
Founded in 1930, Ranked as ”A-Stable”,
8 Plants in Japan, 17 Companies in 8 Countries
Stamping & Molding Products BusinessWe manufacture stamping products, which have the molding
technology of ultra-high-tensile material that achieves both weight
reduction and high rigidity, and resin products, which provide avariety of products with film decoration technology and NV
performance control technology. [USA・China・Taiwan・Thailand]

Valve Products Business
It consists of valve products that have multiple top share productsin the world, TPMS products for tire pressure monitoring systems
that are in increasing demand worldwide, and forging products. We
also manufacture valves for the aircraft, industrial machinery andenergy industries. [USA・France・Belgium・UK・China・Taiwan・
S-Korea・Thailand]

Tire Valve Related

Front Pillar
Lower

Hybrid Battery
Case
Valve Core

Tubeless
Valve

TPMS
TransmitterFood Hinge

Car Air Conditioner Related

Charge ValveEngine CoverSpline Plate
For PHV

Oil PanWheel CapCap Center Ornament

Relief valve

Compressor Parts

Parts for other than Automobiles

Fuel Valves

Valves for
AircraftsIndustrial
Valves２-１ Back
第２Ｑ 連結業績
Looking
on FY2020
Gaining a Solid Foothold GLOCALly by Preventing Being
Infected and Maintaining Employment and Our Production
System as a Top Priority
In Covid-19 pandemic: Shut down
•Infection prevention: Employee/family/regional cooperation•Supply chain: Secure employment and maintain production
system•Cost reduction/Fixed cost reduction/Web utilization→Q1 deficit turned into surplus in the first half,
full-year recovery
New problems：•Production fluctuations due to concerns about material andsemiconductor supply•Prolonged impact on COVID-19, the fourth wave

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2

5/34
2

第２Ｑ 連結業績
1-1 ２-１
Consolidated
Results
Profit is recorded even in the COVID-19 pandemic due toprofit improvement and fixed cost reduction activities（million yen, ％）2019
Q4 Result
Sales

2020

Full year
ResultQ4 Result

Record42,893 High 165,969

Operating
Income3,712 High

Ordinary
Income3,339

Current Net
Income

1,687

Record

8.7%

7.8%

3.9%

Year-on-year rate

Full year
ResultQ4 ResultGain&Loss %change

Full year Result
Gain&Loss%change△1.2 △15,561△9.4

42,369150,408△524

10,511 Record
4,011
High

8,974

9.5%

6.0%

298

＋8.0

11,130 Record
5,345
High

11,218

12.6%

7.5%

2,006

＋60.1

88

Record

3,715

7,982

8.8%

5.3%

2,027

＋120.2726 ＋10.0

6.3%

6.7%

7,256 High
4.4%

△1,536 △14.6＋0.8※Current Net income is a current net income attributable to owners of the parent company.
✔SalesSales recovery after Q2 continued in Q4, almost the same as the same period of the previous year.
For a full year, it was little less than 10 percent due to a large effect of reduced production in Q1.

✔Operating Income

Through improvement efforts, we have transformed into a business structure that makes profits
even when production is reduced.
Record high profit for 4Q. Profit margin also improved.(Same level as Q3）

6/34

1-2 Consolidated Sales & Profit Increase/Decrease Factors

Sales declined significantly due to the impact of COVID-19, but profit decline was
reduced by improvement and cost reduction≪2020 vs 2019≫
Sales△15.5 billion yen

Operating Income△1.5billion yen

Ordinary Income+0.1billion yen（100 million yen ）Averageexchange rate(yen/$)・FY2019 109.2yen・FY2020 105.4yen（100 million yen ）7/34

1-3 Consolidated Business Segments
Sales of stamping & molding decreased, but profits increased.
Sales & profits of valves decreased.

≪Sales≫≪ Operating Income ≫（100 million yen ）

1,659

105

1,504
Valve

89

518
457

（△12％）

65

49（△24％）

38

39

（＋1％）

19年度
FY201920年度
FY2020

Stamping& molding

1,138

19年度
FY20191,045 （△8％）

20年度
FY20208/34

1-4 Consolidated Regional Segment
It returned to profitability in the first half and increased profits in thesecond half. Japan's profits are almost the same as the previous term

≪Operating Income≫≪Sales≫（100 million yen ）

1,659
Asia

292

277
Europe 589& America

Japan

105

1,504
（△5％）

23

89
18 （△19％）523（△11％）

777

702（△10％）

19年度
FY201920年度
FY2020

22

53

19年度
FY201915 （△29％）51 （△2％）

20年度
FY20209/34

１．Financial Results for FY2020

２． Full year forecast for FY2021
３．Approaches for Mid-Term
４．Sustainability Management

2-1 Next Term Consolidated Financial Forecast

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Assuming that in the midst of the risk of COVID-19 and parts procurement,
business performance will gradually increase toward the end of the fiscal year
（million yen, ％）2020
Q2 Year toDate Result

2021

Full year
ResultQ2 Year to Date
Forecast

Year-on-year rate

Full year
Forecast

Q2 Year to Date Result

Gain&Loss

Full year%change Gain&Loss%change

64,827150,408

77,500156,000

12,673

19.5%

5,592

3.7%

Operating Income

862

8,974

4,000

9,500

3,138

364.0%

526

5.9%

Ordinary Income

1,313

11,2184,800

11,5003,487

265.6%

282

2.5%

Current Net Income

942

7,982

3,300

8,000

2,358

250.3%

18

0.2%

Operating Profit
Margin

1.3%

6.0%

5.2%

6.1%

3.9%

0.1%

ＲＯＥ

－

7.6%

－

7.0%

－

△0.6%

ＲＯＡ
(Operating Income Base)

－

4.2%

－

4.1%

－

△0.1%

Net Assts per Share

－

1,846

－

1,938

－

92

Sales

（yen）

5.0%

※Current Net Income is a current (quarter) net income attributable to owners of the parent company.
※By applying Accounting Standard for Revenue Recognition, affects Sales and Cost of sales(Impact in 2021: Sales decreased by 53 million yen)

✔SalesCalculated based on available information such as customer production plans, etc.

✔Operating Income

Expected to increase profits by continuing improvement and recovering sales11/342-2 Next Term Causes of Fluctuation in Consolidated Sales & Income
Sales are expected to recover.
Apparent sales decrease due to application of accounting standards≪2021 Forecast vs 2020≫
Sales＋5.5billion yen
Averageexchange rate （yen/$）・FY2020 105.4yen
・FY2021 105.0yen≪2021 Forecast vs 2020≫
Operating Income +0.5 billion yen

2-3 Next Term Consolidated Business Segments

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Both businesses are expected to be profitable≪Sales≫
1,504
457

Valve

≪ Operating Income ≫（100 million yen ）

1,560
89
483 （+6％）
49

Stamping&Molding

1,045

50

（+0%）

45

（+15％）

1,074 （+3％）
39

20年度
FY202095

21年度（forecast）
FY2021

20年度
FY2020

21年度（forecast）
FY2021

13/342-4 Next Term Consolidated Regional Segment
Japan, Europe & America and Asia
are expected to be profitable≪Sales≫≪ Operating Income ≫（100 million yen ）

1,504
277

Asia

1,560
287 （+3％）

95
89

19

18
Europe523& America

563 （+8％）

15

18

（+0%）
（+15％）

702

710 （+1％）

51

56 （+8％）FY2020
20年度

FY2021
21年度 （forecast）

FY2020
20年度

FY2021
21年度（forecast）

Japan

2‐5

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Consolidated Capital Investment/Depreciation
Prioritized capital investment that has a large effectand that comes out quickly≪ Capital Investment ≫≪ Depreciation ≫

234.5
208.3

Asia 33.8

219.7
47.8

（100 million yen ）

21.3
180.0

49.3

164.7

162.4
61.3

Europe& America

17.6

59.4

40.0

127.0
61.2

40.0

24.1 25.9
13.1

163.8

Japan
113.1 112.4

83.5

'17

'18

'19

99.1 23.9

'20

100.0

61.8

'21

(forecast)'17

141.9 145.6 28.5
24.7 22.6
33.4

37.9

44.4

91.7
77.1 83.7 85.1

'18

'19

'20

'21

(forecast)2-6 Consolidated Cash FlowStrengthen fund management for the entire group

△180

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2-7 Returns for Stockholders

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Maintaining stable dividends even in COVID-19 pandemic■Annual Dividend
FY2020 Annual：33 yen（mid-term：16 yen, Term end：23 yen）
FY2021 Plan Annual ：33 yen（ mid-term：16 yen, Term end ：17 yen)

※Transferred dividends of surplus to resolution of the board of directors

17/34

１．Financial Results for FY2020

２．Full year forecast for FY2021
３．Approaches for Mid-Term
４．Sustainability Management3-1 Approaches for Changes in the External Environment

18/34

Shift to sustainability management

PACIFIC GLOCAL VISION【A revolution once in 100 years】 ・CASE ・Progress in mobility society【OCEAN-22】
Accelerate the development of technologies, bases, new technologies,
new materials, and new manufacturing methods that meet industry
trends and customer needs

WeightsavingIncreasing social
demands such ascarbon neutral
and SDGs

Sound/
Vibration
proof

EV

New fields/ New
products
Impact of
COVID19
Speeding up
DX etc.

Sustainability Management3-2 Sustainability Management

PACIFIC Environmental Challenge 2050
SDGs Activities
Fostering trust withstakeholders
Solving social and customer
issues through products

OCEAN-22
Business Activities

Stamping &Molding
Product
BusinessNew
Valve
Product ProductBusiness Business

Minimizing environmental load
2030 target: 35% reduction in CO2 emissions

Respect and activation ofhuman resources

PACIFIC VALUES “Dreams & Challenges” ”Trust & Respect”

Contributing to prosperous and sustainable
lives through "manufacturing" in a nextgeneration mobility society

Passion in Creating Tomorrow
PACIFIC GLOCAL VISION

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20/3423

3-3 Business Areas of Stamping & Molding Technologies

４-５ ＴＰＭＳの拡充

Evolution of vehicle body weight reduction andnoise analysis technology for electrification

High-performance productsSoundproofing and vibration isolation of EV noise
Development of FRP/new materialHigh design resin
Plating lessFilm decoration

Weight saving
body frame productsSoundproof andVibration proof

Body structure proposal bycrash analysis technology

Urethane foam
technology

Aluminum

FSW, Various welding
technologies

Resin molding
technology

Aluminum
stamping

Hot stamping
Cold ultra hightensile stamping

Sub-ASSY

Stamping single pieces

Stamping Small stamping pieces
moldingtechnology
Dies/welding/Forging stamping
painting / molding

Core technology

Now

1470MPa cold stamping
Establishment of mass
production technology

Large body
frame ASSY
Functional
components
Future21/343-4 Evolution to be a body shell manufacturer
Area expansion and deepening of structural analysis■Expanding the area of body frame
stamping products
・Development of 1470MPa material cold molding/ mass production technology
・Expansion of large body frame ASSY products■Deepening of crash analysis technology
・Expansion of analysis model,
improvement of accuracy

・Proposal of the optimum structure ofvehicle body

22/343-5 Reinforcement of functional resin parts

Area expansion to meet the needs for noise control measures■Expansion of urethane foam products
・Improved comfort by improving NV
performance
・Expand sales by reducing costs andstrengthening competitiveness■Sound/Vibration proof
against EV noise・Analysis of Motorized noise of car
and functional development
・Deepening urethane foam technology,
developing new materials

3-6 Business Areas of Valve/TPMS

４-５ ＴＰＭＳの拡充

23/34
23

Evolution of Sealing/Controlling technologies
IoT/New area
Expanding new fields and individual
development/proposal by searching needs

Various forindustrial use

Creating functional products that meet the market needsof the environment, energy saving, and electrification

Valves for Control
equipment

Matching the needs to individual
development/proposal

Maintaining an overwhelming position
with tire valves and car air conditioner valves

Products for new refrigerants
Pressure, flow control, and electric
control technologies

Tire Valves

Keeping top market share for OE
Creating synergy with Schrader

TPMS
Sealing technology

Core technology

Sensing, electronic control,
and wireless technology

Connected to social
infrastructure
Function addition
System proposal

More variation
Next-generation productdevelopment

Now

Future24/34

3-7 Accumulation of our Valve Technologies
Strengthening collaboration with Schrader■Development of a car air conditioner valves for EVs
Changes in power train

Insufficient heat sourcefor heaters

Heat-pump
air conditioners→ Control valve required for transition to heat pump air conditioner

・Speed up development with 3 basesin Japan, US and Europe→ To create synergies for development■Variation development of TPMS products
・Development of aftermarket products in Europe and theUnited States
・Development and deployment of TPMS for largecommercial vehicles and motorcycles

Product name25/34

3-8 Technology Development in New Fields
Solution technology development■Applying monitoring & wireless technologies to thenew product development《 Applied areas 》
Food production &transportation process※HACCP management method

Statusmonitoring
demandFrozen food

Refrigerated container

TrucksMedical goods /specimen

Data center

Electrical forklift

Medical goods
transportation※GDP Guideline

The livestockindustry
TPMS core technology

Industrial arena
TPMS送信機
アンテナ・センサ内蔵

26/34

3-9 New product development that contributes to prosperous living

Product development applying TPMS core technology■Started selling “e-WAVES” , the multi sensing logger
・Ensuring quality duringtransportation at low temperatures
・Started delivery to majortransportation companies

Data is stored in the cloud using the LTE network

Temperature
Base station

Humidity

Place

VibrationAirpressure“e-WAVES”

IlluminanceRegular communicationmode

Our system

Customer system

Logging mode

・Product introduction video：https://www.pacific-ind.co.jp/products/IoT/e-waves.mp4■Applying sensing technologies to safe/secure productdevelopment
・ A thermo charging cable for electric forklifts
・Server error monitoring system for data centerscharging cable

Server error
monitoring system27/34

１．Financial Results for FY2020
２．Full year forecast for FY2021
３．Approaches for Mid-Term
４．Sustainability Management

4-1 Sustainability Management

PACIFIC Environmental Challenge 2050
SDGs Activities
Fostering trust withstakeholders
Solving social and customer
issues through products

OCEAN-22
Business Activities

Stamping &Molding
Product
BusinessNew
Valve
Product ProductBusiness Business

Minimizing environmental load
2030 target: 35% reduction in CO2 emissions

Respect and activation ofhuman resources

PACIFIC VALUES “Dreams & Challenges” ”Trust & Respect”

Contributing to prosperous and sustainable
lives through "manufacturing" in a nextgeneration mobility society

Passion in Creating Tomorrow
PACIFIC GLOCAL VISION

28/34

4-2 Key Issues of Sustainability

29/34

Four themes related to visions and SDGs
Vision：A company that continues to provide new businesses, new products, and newtechnologies by utilizing its core technologies toward a sustainable society■Solving social and customer issues through products■Minimization of environmental load

Contribution to a sustainable mobility society andprosperous living
Improving mobility safety
Development of environmentally friendly products

Climate change mitigation andadaptation
Sustainable use of resources
Conservation of water resources

Vision：A true GLOCAL company that is trusted bystakeholders, rooted in the local community, andcan coexist and develop

Vision：A company that values new ideas andchallenges of employees and allows them tofeel the harmony between work and life

■Fostering trust with stakeholders■Respect and activation of humanresources

Corporate ethics and compliance
Responsible procurement
Improvement of customer satisfaction
Local community development

PACIFIC
Environmental
Challenge
2050

Respect for human rights
Stable employment and a comfortable workplace
Employee safety and health
Fostering human resources and fostering a culture
where people can take on challenges
Diversity & Inclusion

4-3

Minimization of Environmental Load

30/34

Aim for Carbon Neutral by “PACIFIC Environmental
Challenge 2050”■Milestones to 2050
SDGs
Climate change
mitigation andadaptation

Items

CO2 emission

Current
status(Result in
FY2019)93.9(kt)

2030 Goal

Compared to 201935% reduction

2050
Goal
Zero

Compared to 2019

Sustainable
use ofresources

Waste
emissions

60％ reduction
PACIFIC環境チャレンジ2050
in Japan
3,132(t)30% reduction
in overseas

Conservation ofwater resources

Water usage

1,744(k㎥)

Proper use

Zero

Minimized

31/344-4 Efforts Toward Carbon Neutrality
Examples of environmental load reduction■Introducing renewable energy at domestic andoverseas bases
・Solar power generation has been introduced at 6
domestic bases and 1 overseas base・Tohoku / Taiwan: Plan to introduce using PPA

CO2emission
Reduced350t/year■CO2 reduction by switching power supply sources, etc.
・Special high-voltage power reception / switching tocity gas→ Reduce the amount of heavy oil used andreduce CO2 emissions

CO2emission
Reduced
1,400t/year■Promotion of energy-saving measures in the production
process

・Introduction of new manufacturing methods and new equipment,
improvement of quality and productivity, reduction of loss and disposal
・Construction of model plant, roll out to other plants

4-5 Respect and activation of human resources
Manufacturing is about developing people■Respect for human rights
・ Formulated a human rights policy for thegroup in 2021
・Promotion of initiatives including the
supply chain■ Human resource development
・Opened a learning center to strengthen
safety, quality, and skill education
・Global human resource development andimplementation of rank-based training■Creating a comfortable workplace
・Creating a safe and secure workplace culture
・Promotion of work-life balanceTraining at thelearning center

32/34

33/34

4-6 Initiatives to Information Disclosure
Trusted sustainability management■Sustainability information Disclosure
・Issued Sustainability report 2020
https://www.pacific-ind.co.jp/csr/report/

・Disclosure of various information on the Web

・CDP Climate Change Assessment：
Acquired Leadership level “Ａ－”
Selected as "Leaderboard“ for Supplier Engagement Evaluation■Initiatives to support TCFD
・Promote integration of climate change impact
strategies and information disclosure34/342

4-7 Fostering
trust 連結業績
with stakeholders
２-１ 第２Ｑ
Globally contributing to local society
・Donation of masks, etc. to regions expanding into China (Feb.2020)
・Donation of "PCR inspection car" to Gifu prefecture (Sept. 2020)
・30 years since the establishment of Thai subsidiary: Donation of "ambulance"with our partner (July. 2020)・Newly established mask production line：distributed to employees, suppliers,
and local regions (Sept. 2020)

Donation of PCR test car

Ambulance donation

Mask production line

（FYI）Outlines of our Group Companies
We Do Business at 8 Domestic Plants and 17 Consolidated
Subsidiaries in 8 Countries
Stamping & Molding Business
Valve Products Business

Kyushu Plant

TohokuKurihara Plant

Europe & America

TaiwanWakayanagi Plant

Pacific Manufacturing Ohio, Inc.
Pacific Manufacturing Tennessee, Inc.

OthersDomestic Consolidated
Subsidiaries

PI System Co., Ltd.
Taiheiyo Sangyo Co., Ltd.

Holding Companies etc

Schrader-Bridgeport International,Inc.

FranceSchrader SAS

U.K

UK Service Office（Branch）

Belgium

Pacific Industries Europe NV/SA

Pacific Industries
USA Inc.
August France
Holding Company
SAS

Pacific Valve (Taiwan) Co., Ltd.
Pacific Industries (Thailand) Co., Ltd

Asia
China

A-(Stable)

Tianjin Pacific Auto Parts Co., Ltd.
Changsha Pacific Hanya Auto Parts Co., Ltd

S. Korea

Pacific Valve Industrial Co., Ltd.
Pacific Air Controls Co., Ltd.

Pacific Auto Parts Technology (Changshu) Co., Ltd.
Japan
（Equity Method Affiliated Company)

Pacific Industries
China Corporation
PEC Holdings Co., Ltd

Consolidated

ThailandMino Plant

Yoro Plant

KyushuU.S

Kita Ogaki Plant

Individual

Japan

Chubu

Nishi Ogaki Plant Higashi Ogaki Plant

JCR Rated as

（FYI）Profit improvement case
Thorough on-site improvement, quality improvement activities,
and fixed cost reduction activities■Creating a competitive process even when
production is reduced
・Shortened lead time, Inventory reduction,
Space saving, Personnel reduction
・Reduction of defect rate through process,Utilization of IoT / AI

On-site improvement■Quality improvement activities incollaboration with customers
・Reconfirming end-user needs and product usage
・Proposal to improve issues, discussing withcustomers to optimize quality standards■Fixed cost reduction

Received an award
from a customer

・Improvement of work style, review of work by cross-function
・Immediate measures by utilizing Web meeting