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In H1 of FY2022, there were cost increases due to repeated production fluctuations, material and energy pricehikes, including semiconductor shortages and lockdown effects, but we have promoted cost reduction
activities, including labor and expenses, based on our past experience with the corona disaster.
In H2, amid the situation in the weak yen phase, the impact of parts supply shortages, including
semiconductors, is expected to continue. We assume that October will be the bottom and that the recovery
plan will start from November onward.
Although the external environment remains uncertain, we will maintain the profit structure and system thathas been strengthened to date to be resilient to production fluctuations, and we will put in place a system tomaximize the effects of the volume of goods at the time of recovery.
We will also develop new business fields, expand sales, and formulate a new medium-term management plan.

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As mentioned earlier, automobile production volume remained at a low level due to the prolonged effects of
the lockdown and semiconductor shortage, etc. However, net sales for Q2 increased 15% from the previous
quarter to a record high of JPY90.9 billion due to exchange rate differences resulting from the rapid
depreciation of the yen and the high price of stamped steel products.
As for profits, despite ongoing efforts to improve profitability and reduce fixed costs, operating income fell
48% YoY to JPY2.6 billion due to soaring energy and material prices and production responses.
Ordinary income decreased 4% to JPY5.5 billion due to foreign exchange gains resulting from yen depreciation,and net income decreased 5% to JPY4.1 billion.

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Net sales decreased by JPY1.9 billion mainly due to the impact of selling prices, but the weaker yen had apositive impact of JPY7.8 billion in terms of conversion. The increase was due to the impact of material prices
following the rise in the price of stamped steel and other materials, which increased by JPY12.4 billion fromJPY78.4 billion in Q2 of the previous fiscal year.

3Operating income decreased by JPY2.4 billion from JPY5 billion in the previous year to JPY2.6 billion, duelargely to the impact of selling prices, increased cost burdens such as labor costs resulting from changes inproduction plans, and increased expenses resulting from higher material and energy prices.

4Sales in the stamping & molding business increased 19% YoY to JPY63.8 billion due to the impact of yen
depreciation. Operating income decreased by JPY1.4 billion to JPY0.1 billion due to an increase in expenses
and labor costs. Sales in the valve business increased 7% to JPY26.9 billion, and operating income decreased
JPY0.9 billion to JPY2.3 billion due to higher material prices.

5Sales in Japan were JPY33.8 billion, unchanged from the same period of the previous year. Operating income
decreased JPY1.5 billion to JPY1.5 billion.
Sales in Europe and North America increased 27% to JPY37.9 billion. Operating income decreased by JPY0.8
billion to a loss of JPY0.3 billion due to increased material and labor costs.
Sales in Asia increased 25% to JPY19.1 billion. Operating income decreased by JPY100 million to JPY1.1 billion.

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We have revised our forecast in light of the results of the two quarters and the uncertain external environment,
including customers' production declines, semiconductor shortages, and the impact of the yen's depreciation.
Net sales are expected to increase 12% YoY to JPY185 billion, assuming a gradual recovery in sales volume andfactoring in the impact of higher steel prices and yen depreciation on foreign currency translation.
Operating income is projected at JPY8.5 billion, down 21% from the previous year, with a profit margin of4.6%.
The assumed exchange rate for H2 has been changed from JPY130 to JPY140, with an annual exchangesensitivity of JPY100 million per JPY1.

7We forecast full-year net sales of JPY185 billion, up JPY20.5 billion from JPY164.4 billion in the previous year,
due to an increase in net sales resulting from the exchange rate difference caused by the weaker yen and theeffect of the price of materials, despite a decrease in net sales due to the shift to receiving stamping parts fora fee and lower sales prices.

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Operating income for the full year is projected at JPY8.5 billion, a decrease of JPY2.2 billion from the previousyear. Although material prices remain high, costs are increasing due to soaring energy prices and foreignexchange gains, we will strive to expand sales and improve cost of sales to secure profitability.

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Sales in the stamping & molding business includes the JPY4.4 billion decrease due to the shift to paid-for
stamping parts, and we forecast net sales of JPY131.2 billion, up 14 % from the previous year, and operating
income of JPY3.9 billion, down 20%. Net sales for the valve business are projected to increase 7% from theprevious year to JPY53.5 billion, while operating income is expected to decrease 21% to JPY4.6 billion due tohigher material prices.

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For Japan, we forecast net sales of JPY69 billion, unchanged from the previous year, and operating income ofJPY3.8 billion, down 38%; for Europe and North America, we forecast net sales of JPY73.8 billion, up 20%, andoperating income of JPY0.9 billion, down 34%; for Asia, we forecast net sales of JPY42.2 billion, up 22%, andoperating income of JPY3.7 billion, up 16%.

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In FY2022, we expect to invest JPY30 billion. This is due to the construction of a new plant in the Ogaki area
as the global mother plant aiming for carbon neutrality, accounting for JPY13 billion, and the introduction ofstamping equipment to increase production in Japan, the US, and China, in addition to the usual production
preparations associated with the launch of new products.

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As for dividends, the interim dividend will be JPY20 per share as announced in April. The year-end dividend isforecast to be JPY22 per share, for a total annual dividend of JPY42 per share. The payout ratio for the fullyear will be 30.3%.
The JPY1 billion share buyback announced in May was completed as planned at the end of August. The issuer
rating from Japan Credit Rating Agency, Inc. is A-minus. The above is an explanation of the earnings forecast.

13Based on our long-term vision, “PACIFIC GLOCAL VISION”, we have woven the four themes of sustainability
based on the concept of “OCEAN-22” stamping & molding, valve &TPMS, new business as the warp, and SDGs
as the weft, and are working to become a company that contributes to affluent and sustainable living in thenext-generation mobility society through monozukuri, or craftsmanship.

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We have formulated the PACIFIC Environmental Challenge 2050, which aims to be carbon neutral by 2050,
and are making steady progress in our activities toward halving our CO2 emissions by 2030.
To reduce CO2 emissions, we are working to optimize facility operation as part of daily improvements, and tolimit waste, we are promoting the recycling of scrap rubber.

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As part of our efforts to solve issues for society and customers through our products, we are promoting weight
reduction in our stamping business.
After evolving structural and CAE analysis, the front pillar made of cold stamping ultra-high tensile 1,180 megapascal material was adopted for the new Crown and received a project commendation. We will continue toreplace hot stamping.

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Development of electric expansion valves for thermal management systems in BEV vehicles has been
completed and is being prepared for production. We will work with Schrader in the US and France to develop
and expand sales of the technology to and mega Tier-1 and systems suppliers.
Another is the development of soundproof covers for BEVs, using sound and vibration isolation technology
developed for engine covers. We have developed soundproofing covers for electric compressors of airconditioners and other products to meet new noise reduction needs by advancing urethane technology.

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As a challenge in the non-automotive field, we will develop new products that can provide solutions byutilizing our core technologies such as sensing and wireless technologies cultivated in TPMS.
CAPSULE SENSE, cattle body condition monitoring system launched in June of this year, measurestemperature, pressure, acceleration, and other parameters in the stomach of cattle, and has been developed
as a product that can contribute to health management of estrus, calving, and disease, as well as reduce
monitoring work.
In addition, e-WAVES, a multi-sensing logger that can be used for vaccine transportation and HACCPcompliant food transportation, received the 2022 "Cho" Monozukuri Award and the Japan Brand Award. We
have been highly evaluated for our contribution to society and the originality of our products.
In addition, we are participating in various demonstration tests conducted by the Ministry of Land,
Infrastructure, Transport and Tourism for flooding sensors, etc. We will continue to identify needs anddevelop products with the aim of solving social issues through our products.

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We have already introduced solar power generation at seven plants in Japan and two plants overseas, andthis year we plan to introduce a new 1,000-kilowatt solar power generation system in Thailand. In addition,
the three plants in Kyushu and Tohoku have switched 100% of their electricity use to renewable energy, andthe plants in the Chubu region are in the process of switching to renewable energy, aiming to achieve ourtarget of 20% renewable energy use.
The new Higashi-Ogaki Plant, which is under construction, is well underway as a global mother plant,incorporating innovations for carbon neutrality from the plant construction stage, with the aim of improving
manufacturing efficiency and creating a workplace environment where employees can work with vigor andenthusiasm.

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At the end of September, we published our Sustainability Report 2022, which reports on the progress of oursustainability initiatives and KPIs. We are developing a fuller disclosure of the status of initiatives such as
respect for human rights, health management, diversity and inclusion, and fair trade, as well as information
disclosure based on the TCFD.
We have also received recognition for our efforts from external organizations and have been awarded aLeadership Level A minus in the CDP, Climate Change Assessment for two consecutive years, and a Leader
Board in the Supplier Engagement Rating for two consecutive years, as well as a Silver Medal in the EcoVadis.
Although there are challenges in the external environment, such as the coronavirus disaster, the situation in
Ukraine, and exchange rate fluctuations, we will continue to manage our operations flexibly to achieve
OCEAN-22, which is the final year of the plan.
The year 2030 is also the year of the SDG goal and the 100th anniversary of our company's founding. Looking
further ahead to 2050, while back-casting, we will announce our medium-term management plan, OCEAN-26,
in April of next year. And we will continue to create tomorrow.

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