1

2

＜Our main business＞
・We operate in main business segments: stamping and molding productbusiness, valve product and TPMS business.
・In the tire valve market, our corporation’s founding enterprise, wehave been a specialized manufacturer with the world’s top market sharefor a long time.
・Furthermore, we have acquired SCHRADER’s valve business in 2018.
We are the world’s top market share in this field.

3

<Our history>
・In 1930 Started business in valve core nationalization
・In 1962 Listed in the Second Section of the Tokyo Stock Exchange.
・In 1970 Listed in the First Section of the Tokyo Stock Exchange.
・Rating of Japan Credit Rating Agency(JDR) is “ A-”（stable）
Division Structure”Stamping and Molding”, ”Valves”, ”Other”
Stamping and Molding
Accounts for about 70% of total sales.
Primarily working with Toyota group, but also Mitsubishi, Honda, andSuzuki.
Based in Taiwan, the US, China, and Thailand.
Valves Business・Accounts for about 30% of total sales
Based in Taiwan, the US, China, South Korea, Thailand, andBelgium.

France and UK are added to our bases after acquisition of SCHRADER.
・We are the world’s top market share of Tire Valves.

4

＜Corporate Governance＞
We will conduct company management based on the stockholders’perspective and try to construct and maintain a clear corporate
governance system.
For the “Corporate governance code”, our basic policy is to follow all
items.
・For our corporate governance system, we selected “a female outsidedirector” on the general meeting of shareholders on June 15 th,2019. We
will ensure transparency and fairness in the decision making process byadding more diversity for Board of Directors’ decision making.
・We also strengthened the function of “Outside Officers' Meeting” andchanged the system to discuss the selection of directors and theirremunerations.
・We will expand, strengthen and improve essential internal
control/internal audit continuously in order to improve “corporategovernance” more.

5

6

＜Consolidated Financial Results2Q ＞
・Sales and operating profit are record highs.
・Our main customers' automobile production increased year-on-year in Japanand China, and remained at the same level as the previous year in the US andEurope.
・Sales:・ Sales was ¥82.7 billion yen(+28.7% YoY) In addition to the acquisition ofnew products, due to the consolidation of SCHRADER acquired in August 2018.

・Profit:・Operating income reached a record high of 4.6 billion yen (+ 19.1％ YoY) due tothe increase in sales volume.
・Ordinary income was 4.9 billion yen (▲ 2.5% YoY) mainly due to the impact ofexchange rates.
・ We have factored in profits and losses from the acquisition of SCHRADER for
the full year from this fiscal year. The “goodwill” fee was provisionally accounted
for, but has been finalized at the end of March 2019.
・ In contrast to the figures announced on April 25, sales increased due tochanges in the product mix, but profits increased due to an increase in laborcosts and expenses associated with new launches, and a negative result due tofluctuations in material prices. Profits declined.

7

＜Causes of Fluctuation in Sales & Income for 2019 2Q＞
Sales:
Positive Factors
・Increase in sales volume and new products including SCHRADER valve
business ¥ 20.5 billion
Operating Income:Negative Factors
・Increase in depreciation cost ▲¥1.5 billion
・Increase in labor costs ▲¥1.5 billion
・Increase in expense ▲¥1.2 billion
・Decrease in selling price ▲¥0.5 billion, Material price etc.
billion▲¥0.2

Positive Factors
・Increase in sales volume ¥4.7 billion, Cost improvement ¥0.9 billion
Exchange rate (vs. US dollar)
First half of the previous year: 109.70 yen
This first half: 109.30 yen

8<2Q Business Segment >【Stamping & Molding Business】
Sales:¥56.6 billion (+25.1% YoY)
・Even though sales decreased in China, new products in Japan and theUnited States contributed to a rise.
Operating Income:¥1.4 billion (+ 9% YoY)
・Profit decreased due to decrease in sales volume in Asia, an increased
depreciation due to strategic investments in the United States, andincreased costs due to new launches.
・ By increasing sales volume in Japan and cost improvements operating
income was ¥1.4 billion (+ 9% YoY) overall.
【Valve Business】
Sales:
・Sales rose to ¥ 26 billion(+37.7% YoY) due to an increase in sales
volume of TPMS and SCHRADER's business.
Operating Income:・Operating income rose to ¥3.2 billion(24.9％ YoY) due to theconsolidation of SCHRADER and a decrease in acquisition costs incurredprevious term.

9＜Consolidated Regional Segment＞【Japan】
・Sales increased 24.2% to ¥39.4 billion due to an increase in sales
volume of Stamping & Molding Business and TPMS.
・Operating income increased 50.1% to ¥ 2.9 billion due to an increase insales volume and cost improvements despite an increase in depreciation
expenses due to strategic investments.
【Europe and America】
・ Sales increased 59.9% to ¥30.4 billion due to the consolidation ofSCHRADER and the acquisition of new products in Stamping & Molding
business.
・Operating income decreased 14.2% to ¥0.9 billion despite an increase insales volume, due to an increase in labor costs and expenses related tothe launch of new products, and an increase in capital investment andamortization of “goodwill” .
【Asia】
・Sales decreased 4.5% to ¥12.9 billion due to a decrease in subsidiaries
in Korea and China.
・Operating income decreased 32.6% to ¥0.4 billion due to a decrease insales volume.

10

<Consolidated total assets>
・ Total assets at the end of the 2Q were ¥ 201.6 billion, a decreaseof ¥ 2.1 billion from the end of the previous fiscal year.
・Fixed assets increased by ¥3.8 billion due to capital investment,etc., but current assets such as cash and accounts receivable
decreased by ¥6.0 billion.

<2Q Consolidated Cash Flow>・ Net cash provided by operating activities was ¥12.1 billion and cashused in investing activities was ¥11.2 billion.
As a result, free cash flow was plus ¥0.8 billion.
・ As a result of expenditures of 2.5 billion yen for cash dividends andother financial activities, the balance of cash at the end of the second
quarter decreased ¥ 2.1 billion to ¥19.3 billion.
・ Interest-bearing debt decreased ¥1.7 billion to ¥59.9 billion.

12

<Returns for Stockholders>・As for dividends, we have positioned return of profits to shareholders as
an important management issue. Based on continuing stable dividends,
we comprehensively judge performance and payout ratio, and pay
dividends on surplus.
・The dividend for the first half was decided to be an ordinary dividend of￥16 as planned initially.
・ The year-end dividend will be ¥17, and the full-year dividend will be ¥33, the same as the previous fiscal year, with a consolidated payout ratioof 24.9%.
・ In the future, we will aim for a dividend payout ratio of 30%.

13

14

＜Consolidated Financial Forecast＞
Sales:
・Net sales are expected to be ¥ 160.0 billion, an increase of ¥ 5.0billion from the previous announcement, an increase of 10.3%
year-on-year, reflecting an increase of ¥ 4.7 billion from theforecast in the second quarter.
Profit:・Each profit remains unchanged from the previously announced
value.
・Operating income decreased 3.0% year on year to ¥10 billion,
ordinary income decreased 6.5% to ¥11.0 billion, net income isexpected to decline 8.4% to ¥8.0 billion.
・Sales and profit in 2nd Half are expected to be the same aspreviously announced.
The decrease in profit due to the increase in new start-up costs inthe first half will be recovered by improving labor costs andexpenses.
・ Second half exchange rate: 105 yen
・ Exchange rate sensitivity : 100 million yen per year per 1 yen

<Causes of Fluctuation in Sales & Income>Sales:
・Expected to be ¥160 billion , increased sales for 3 consecutive years
Positive factors:Sales expansion and sales volume increase as follows
・ Increase in ultra high- tensile strength and aluminum products(¥10.5billion)
・ Consolidation impact of SCHRADER (¥ 8 billion)
Negative factors:
・ Decrease in sales due to the effects of exchange rates and lower sales
prices.
Operating income
・Expected to decrease ¥ 0.3 billion to ¥ 10 billion
Positive factors:
・ Sales expansion and sales increase（￥4.7 billion ）, cost improvement(¥2.1 billion)
Negative factors:
・ Including depreciation of goodwill (¥0.5 billion), increase in depreciation
expenses (¥3.0 billion).
・ Increase in labor costs (¥1.5 billion), sales price decline (¥1.1 billion),increase in expenses (¥0.8 billion)

16

<FY19Forecast of Consolidated Business Segment >Business segment:
・Stamping & Molding Business:￥108.8 billion.
・The valve business :￥50.8 billion.
Segment by region
・Japan: ￥74.5 billion
・Europe and the US :￥56.8 billion
・Asia : ￥28.7 billion

17

＜Business Segment: Stamping & Molding Business ＞
・FY2019 ForecastSales
・Due to increase in ultra high-tensile strength and aluminum products
sales are expected to be ¥108.8 billion(+8.3％YoY).
Operating Income
・Operating income is expected to be ¥3.7 billion（▲13.5％YoY）
・Main Factors:
Increase in sales volume
Cost improvement
Increase in variable costs due to sales increase
Increase in depreciation
Starting-up cost for new products18

＜Valve Business ＞
・FY2019 Forecast
Sales
Sales are expected to be ¥50.8 billion(+14.8％YoY)
It is mainly due to increase in SCHRADER ‘s sales (¥8billion)
Operating Income
・Operating income is expected to be ¥6.2 billion（+4.1%YoY）
・Main Factors:
Increase in sales volume including SCHRADER
Increase in goodwill amortization
Decrease in sales priceForeign exchange loss

19

<Regional segment : Japan>
・FY2019 Forecast
Sales
・ Sales in Japan are expected to increase by 5.0% year-on-year to ¥74.5 billion,
due to an increase in press and resin business.
Operating Income• Operating income is expected to be ￥5.7 billion, the same level as theprevious fiscal year.
・Main Factors:
Increases in sales volume
Cost improvements
Depreciation expenses increased
Sales prices fell
Foreign exchange lossetc.

20

<Regional segment : Europe and America>
・FY2019 Forecast
Sales
・Sales are expected to increase 28.4% year on year to ¥ 56.8 billion.
・In addition to SCHRADER consolidation, in the stamping business,increased sales due to increased capacity at Tennessee's subsidiary.
Operating Income
・ Operating income is expected to be 2 billion yen, the same level as theprevious year.
・Due to an increase in depreciation of “goodwill” and starting-up costfor new products,
despite cost improvements and an increase in sales volume due tobusiness acquisitions.

21

<Regional Segment : Asia>
・FY2019 Forecast
Sales
・Despite the increase in sales of TPMS products in China, sales are
forecast to decrease 3.9% year on year to ￥28.7 billion due to theimpact of automobile production in Taiwan and Korea.
Operating Income
・Operating income is expected to decline 17.7% to ¥ 1.9 billion due toforeign exchange losses and an increase in depreciation expenses
associated with the start-up of a press business in Thailand.

22

<Forecast of Capital Investment and depreciation>
・We have invested over ￥20 billion since FY 2017, and plan to invest￥23 billion in FY 2019.
・Depreciation expenses are expected to increase to ￥15.4 billion due tohigh level capital investment.
・It is to be noted that the depreciation expense, amortization of"Goodwill" does not include.

23

<Main items of Capital Investment by business>
Valve business・Investment for synergy with SCHRADER
・Expanding new type of TPMS line in China and North America.
・Expanding the aluminum die-casting business in South Korea.
・Expanding the machines of forging for high-precision forming.
Stamping and Molding business・Equipment large equipment units corresponding to cold ultra hightensile in the US ,Thailand, China, Taiwan, and Japan.
・Hot stamp equipment units in the US.

24

<Reference: 2Q Individual Financial Results>
Sales
Sales increased 17.6% year on year to ¥ 45.2 billion due toincreased sales of press / resin and TPMS products.
ProfitOperating income was ¥ 2.9 billion, Ordinary income was ¥ 4.6billion, and net income was ¥ 3.5 billion.

26

<Mid-term Management Plan “OCEAN-22”>
We formulated “OCEAN-20,” our mid-term management plan that serves
as a concrete action plan for our long-term vision “PACIFIC GLOCALVISION 2020,” and have promoted the plan so far.
FY2022 Targets
Consolidated sales : 175.0 billion yen
Consolidated operating income : 7% level
ROA (operating income) : 6% level
For the next leap forward, we will solidify our foundation for
manufacturing by improve safety, quality and productivity, improve costs
and reduce fixed costs, and strengthen manufacturing and humanresources.

27

＜The environment surrounding our company＞
In the automobile industry, weight reduction of “CASE” and “MaaS” is thekey to competition between companies.
In addition to strengthening regulations such as safety regulations andenvironmental regulations, social issues such as “SDGs” and efforts for“ESG management” are also required.
We will continue to develop technologies for improving safety
performance, environmental performance, and comfort performance byutilizing our core technologies to meet customer needs and social
demands, including weight reduction.

28

<Development of Light-weight Stamping Products>
・Our stamping products have deepened our technology to meet the needfor weight reduction and collision safety improvement indispensable fornext-generation automobiles.
・In particular, we are sticking to the cold press method, establishingtechnology to mold ultra high tensile materials, and adoption of 1180Mpa
steel materials is expanding. We have developed the molding technology
for 1180MPa material, that had been difficult to elaborate complex forms
with cold stamp method for a long time, and we realized mass
production of the front pillar lower for the first time in the world.
・In addition, we are making technologies in hand for hot stamps thatmold steel materials by heating them at high temperatures. For products
difficult to mold with cold press method, we suggest hot stamps to meet
our customers’ needs.
・Along with expanding adoption of ultra-high tensile material, we will
deploy large-class stamping machines locally and globally, and prepare
for supplying system sequentially.

29

<Development of a Method for Aluminum Weight-saving>・We have been developing our various welding techniques for aluminummaterial. Friction stir welding (FSW) has been highly evaluated bycustomers because it has improved material yield, reduced costs, andreduced weight.
・The Lexus UX released last year has adopted an aluminum frame using
FSW for the door frame that requires high accuracy.
・In the future, our aluminum processing technology is expected to beadopted to many automobile components.

30

<Offering Comfortable, High Environmental Performance Plastic
Molding Products>
・Our resin film decoration technology has been highly evaluated bycustomers, including cost competitiveness, as an environmentally friendly
technology that replaces plating, realizing weight reduction and improved
recyclability.
・Overseas bases are also expanding sales, and the Thai base won the“VA Award” for the center ornament for aluminum wheels.
・We will continue to develop decorative variations to meet diverse needsin the future.
・We provide soundproof and vibration-proof products such as allurethane engine covers and insulators for engines.
・In the future, the need for noise reduction and comfort is expected toincrease due to the insulation of motor noise through EVs and thestrengthening of regulations on outside noise. We will further improve
performance by promoting urethane foam material development andproduction technology development.

31

＜Diversified Technologies in Forge Stamping and DC Business ＞
・Forge Stamping Business offers thin, lightweight products by using plateforming technology combining sheet metal forming productivity and highprecision cold forging.
・The products are used in new transmission parts, etc., and expanding
the range of use.
・We will continue to promote sales expansion to win orders for EV andHV parts.
・At the South Korea subsidiary, we have established an integrated
production line that spans from die casting to cutting processing to meet
our customers’ needs and our quality is highly evaluated by ourcustomers.
・We will expand the number of order items and offer products of highquality, such as electric compressors, components for electric powersteering, etc.

32

＜Our Stamping & Molding Products Adopted on New Cars（NewRAV4）＞
・Our technologies and products have been adopted to new RAV4:
reduced weight stamping products such as ultra-high tensile andaluminum components, all-urethane engine cover, improved NV
performance, forge stamping products with sheet forging technology
etc.
・Our technology and products will continue to be adopted to new cars
globally.

33

＜Expansion of TPMS (Tire Pressure Monitoring System) Productsthat Contribute to Safety and the Environment＞
・We have been mass producing TPMS transmitters since 1999. One ofour strengths as the only manufacturer of transmitters in Japan is ourability to offer high quality products in an integrated production systemthat spans from design and R&D to full production.
・E-type TPMS, having started mass production last year, achieved
becoming small and light-weight.
・In order to respond to the trend of legal regulations in China and othercountries around the world, we are building a production system. Our
supply system for TPMS type-E has been established in Japan, the USand China.
・We are preparing many different types of TPMS. As part of that, wehave developed, mass produced and sold motorcycles todomestic /overseas customers.
・We are promoting the development of versatile aftermarket productswith the North American market as the main target.
・We will continue to develop and propose high value-added products thatmeet diversifying needs.

34

<Working For Synergy in Valve Business>
・We acquired SCHRADER valve business in August 2018 in order tosecure growth and cost competitiveness of “valve business” that is our
founding enterprise.
・This realized our production and sales system in the world’s 4 regions:Japan, the U.S., Europe and Asia. We have secured our leading positionin the valve industry by integrating the PACIFIC brand and theSCHRADER brand.
・We have started activities to create synergy right after the businessacquisition.
・On the sales side, we will expand sales to new markets and newcustomers, and build a system to complement the product lineup.
・On a technical side, we will promote developing our new products andcost reduction by sharing our technologies and extending our strength.

35

＜Our Valve Products for Various Purposes＞
As an professional valve manufacturer, we have met customer needs invarious areas, developed and delivered various valve products.
The acquisition of SCHRADER valve business enabled us to offer variousproducts; valves for fuel system, valves for aircrafts, and industrial valves
were added to our product lineup, in addition to conventional valves.
In the future, we will utilize the newly acquired bases and customer sales
network to capture a wide range of needs and further expand the valve
business.

36

<Mid-term Management Plan “OCEAN-22”>
Key initiatives to achieve OCEAN-22
・ The first is “Trust”. First, we will solidify the costs, create costs that are
the essence of corporate value, increase profitability, and promote ESG
management.
・ The second is “Innovation”, which uses innovation in development andtechnology and AI / IoT to promote manufacturing reform.
・ The third is “Challenge”, aiming for sustainable management byfostering next-generation human resources and fostering a corporate
culture that can be challenged.

37

<Value Creation Model>
・ In light of social issues and internal and external businessenvironments, we will promote the medium-term management plan
“OCEAN-22” as a step to promote “PACIFIC GLOCAL VISION”, and wewill work on SDGs .
・As the foundation of our efforts, we will use “PACIFIC VALUES”, which is
a common value of the Group, and we will contribute to the next
generation technology and mobility society through “Manufacturing”.

38

<Brand Slogan>
We formulated a new Brand Slogan to share the company's direction withshareholders.
“Passion in Creating Tomorrow.”
In preparation for a mobility society, we aim to become indispensablefor society and aspire to create a future society with passion.

39

40