Jul.26th, 2024
Pacific Industrial Co., Ltd.

Briefing for Fiscal Year 2024 First Quarter Q & A《Q1 Financial Results/Full year Forecast》
Q1: Please explain the background behind the revision of the full-year financialforecast.
A1: Regarding the full-year financial forecast this time, we have revised the first half
upward. We have not changed the second half from the last forecast announced on
April 25. For the first half, the upward revision is mainly due to the exchange gain,
passing on cost increases to selling prices, suppressing price reductions, andreductions in labor costs and expenses. It reflects not only the better-thanexpected results of the Q1 but also the same upward trend expected for the Q2.
For the second half, compared to the previous forecast, we have raised theexchange rate assumption from 145 yen to 150 yen. Toyota's production volume isexpected to decrease slightly in Japan and China. Therefore, we expect nosignificant changes overall, with the positive impact of foreign exchange offsetting
the negative impact of volume factors.
Q2: Please provide detailed background on the Q2 forecast, as a decrease in sales andprofit is expected compared to Q1.
A2: For Q2, we anticipate a slight decrease in sales volume compared to Q1.
The reduction in North American dies and molds sales significantly impacts theprofit decline in the European and American regions. We do not expect significant
changes in the volume for Japan and Asia.
Q3: Operating profit is forecast at 5 billion yen for the first half and 6.5 billion yen forthe second half. Please explain the background behind the anticipated increase inprofit for the second half.
A3: We expect Toyota's production volume to increase in the second half compared to
the first half. By region, we foresee an increase in volume in Japan and Asia during
the second half, and a slight rebound in China from the first half's decline. Although
North America's production volume is expected to remain steady, the reduction indies and molds sales will negatively impact profits. Overall, we anticipate that theincrease in volume in each region will contribute to profit growth.

Q4: Please provide specific figures for Toyota's production volume assumptions.
Additionally, what is the background for the reassessment of the volume for Japanand China in the second half? Are these figures provided by Toyota, or are they
your own estimates?
A4: The production volumes that affect us are in Japan, North America, and China.
While we do not disclose specific numbers, we expect a slight decrease of justunder 10% YoY for the first half as a whole. For the second half, we anticipate
recovery in Japan and the United States compared to the previous year, whereas
China remains weak, resulting in a total slight increase. These assumptions arebased on our own estimates and are continually revised as new information
becomes available. If increased production in Japan is expected during the second
half, it will be reflected in our plans.
Q5: Please explain the background behind the positive impact on the financial forecast
due to the suppression of price reductions. Is it correct to understand thatnegotiations proceeded smoothly compared to the initial conservative plan?
A5: As you rightly understand, the price revision negotiations with major customers
went smoother than initially planned. Additionally, compared to before, othercustomers are more understanding of the necessity of price increases. Both factors
contributed to the suppression of price reductions.
《Mid-term Forecast》
Q6: Please explain the measures being taken to support financial performance throughcompany-specific factors, as well as the factors expected to contribute in thefuture, considering the overall forecast that FY2024 will be a period of temporary
stagnation in FY2024 and looking ahead to FY2026, the end of the current midterm plan period.
A6: In the stamping and plastic molding, valve, and TPMS businesses, the developmentof new products is progressing, and orders are steadily advancing. We expect tocontinue needing capital investment in FY2025. While there are depreciation
burden from investment, including past investments, we are striving to deliver
results in both sales and profits, aiming to achieve the targets of the mid-term
management plan in FY2026.
《Other》
Q7: Regarding the sale of strategic shareholdings, the securities report indicates that aportion of Toyota Motor Corporation shares was sold. What do you consider anappropriate level of holding, and do you plan to further sell down the holdings?
Please provide your insight.

A7: As part of our mid-term management plan, we aim to reduce the ratio of strategic
shareholdings to net assets to below 20%. As of the end of June this year, the ratio
stands at 19.9%, and we intend to continue selling shares. In addition to Toyota
Motor Corporation shares, we also hold other shares, and we will prioritize andproceed with their sale, aiming to keep the net asset ratio well below 20%. We are
currently discussing the direction beyond this internally and plan to present it later
as a new financial strategy.
Q8: Regarding the sale of Toyota Motor Corporation shares, it seems that the process
went smoothly compared to other group companies. Please explain Toyota's
reaction at the time of the proposal and why the sale proceeded smoothly.
A8: Through our communications with them, we explained our reasons for selling theshares, we explained our reasons for selling the shares and, once the other party
understood, we proceeded with the sale.