Financial Results
Briefing for Q2

Year Ending March 2023
The 99th period：Cumulative Second Quarter(Apr. 1st, 2022- Sept. 30th, 2022)

November 1, 2022

Table１．Financial Results for Q2

２．Full Year Forecast for FY2022
３．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 involvedin fluctuation of exchange rates.

2/25

Looking Back on the First Half of 2022 and Future Issues
in the Second Half

■Changes in management environment and Risks
・Insufficient supply of semiconductors etc.
・Production fluctuations due to the locked down
・Steep rise in raw material and energy prices
・Progress in yen depreciation■Results in the First Half・Decrease in sales volume due to production fluctuations
・Promote cost improvement and cost reduction activities, etc.

■Future Issues and Initiatives
・Prepare system for recovery production, maximize effect of increased
production
・Continuing activities to grow existing and new businesses
・Develop a new mid-term management plan
3/25

1-1 Q2 Consolidated Results
Sales up, operating income down（100 million yen, ％）FY2021Q2 Cumulative Result

Sales

FY2022Q2 Cumulative
forecast

Forecast ratio

YoY rate
Gain&Loss% Change

Gain&Loss% Change909+124＋15.9+19＋2.1△8△25.7

Q2 Cumulative Result784890

503526△24△48.2

6.4%

3.9%

2.9%

△3.5P

－575355△27.4%

6.0%

6.1%

△1.3P

433841△2Quarterly Net Income margin

5.6%

4.3%

4.5%

△1.1P

－

Average exchange rate（U.S. dollars）¥109.9¥128.0¥129.8+¥19.9－Operating Income

Record HighOperating Income Ratio

Ordinary Income

Record High

Ordinary Income Ratio

Quarterly net income attributable tothe parent company shareholders

Record High

Record High

△4.4－

△5.7

△1.0P

+2+0.1P+3+0.2P+ ¥1.8－＋4.6－＋8.7－－

4/25

1-2 Q2 Causes of Fluctuation in Consolidated sales
Record high sales for Q2 due to yen depreciation and rising steel prices

MaterialpriceExchange
conversion

784

Selling price

Increasedsales volume+13

Exchange
gain+8

unit: 100 million yen

909+45+78△19FY2021
Q2 cumulative

Operating Income ＋12.4 billion yen

FY2022Q2 cumulative

5/25

1-3 Q2 Causes of Fluctuation in Consolidated Operating Income
Income decreased due to lower selling prices and higher costs despite efforts toimprove costs
50unit: 100 millon yen

Selling price△19Increasedlabor cost

Increased
sales△8Materialprice△6Exchangegain

Increased
Depreciaton

Cost(excluding dies)

volume26+3+8

improvement△6Increased
Expenses+9△5FY2021

Q2 cumulative

Operating Income △2.4billion yen

FY2022Q2 cumulative

6/25

1-4 Q2 Consolidated Business Segments
Sales increased and income decreased for stamping & molding and valves（100 million yen,％）
Sales

Stamping & Molding

Operating Income

21/Q2

22/Q2

YoY rate

21/Q2

22/Q2

YoY rate

Cumulative
ResultCumulative
ResultGain&Loss %Change

Cumulative
ResultCumulative
ResultGain&Loss %Change

532638161△143.1%

0.3%

△2.8P

3323

△913.5%

8.8%

△4.7P

+105+19.9

Operating Income RatioValves
Operating Income Ratio

250269+19+7.7

△88.5

△29.3

7/25

1-5 Q2 Consolidated Regional Segment
Sales increased and income decreased in Japan, Europe, America, and Asia
（100 million yen,％）SalesJapan

Operating Income

21/Q2

22/Q2

YoY rate

21/Q2

22/Q2

Cumulative
ResultCumulative
ResultGain&Loss %Change

Cumulative
ResultCumulative
Result334

338

31+4+1.3

Operating Income Ratio

Europe & America

297379+81+27.3

Operating Income Ratio

Asia
Operating Income Ratio

151191+39+25.9

YoY rate
Gain&Loss%Change15△15△49.8

9.3%

4.6%

△4.7P5△3△81.8%

△0.9%

△2.7P

1311

△18.6%

6.0%

△2.6P

△163.9△12.88/25

１．Financial Results for Q2
２．Full Year Forecast for FY2022
３．Sustainability Management

9/25

2-1 Full Year Consolidated Financial Forecast
Based on the cumulative Q2 results, we have incorporated the latest information
into the forecast for the second half and revised the full-year forecast.
（100 million yen,％）FY2021

FY2022

YonY rate

Previous Forecast Rate

Full YearForecast

Full Year

Full Year

ResultForecast
7/27

This timeSales

1,644

1,780

Operating Income107

Operating Income Ratio

Gain&Loss%Change

Gain&Loss%Change

1,850+205

12.5%

+70

3.9%

105

85

△22△21.0%△20△19.0%

6.5%

5.9%

4.6%

△1.9P

－

△1.3P

－

Ordinary Income

146

135

115

△31△21.3%△20△14.8%

Current Net Income

98

95

83

△15△15.3%△12△12.6%

ＲＯＥ

8.1%

7.0%

6.1%

△2.0P

－

△0.9P

－

ＲＯＡ(Operating income basis）

4.6%

4.2%

3.4%

△1.2P

－

△0.8P

－

Net Assts per Share¥2,138¥2,370¥2,381

¥243

11.4%

¥110.5%

Average exchange rate (US dollars)¥112.1¥129.0¥135.0¥22.9－¥6.0－(updated)※Current net income is the current net income attributable to the parent company shareholders.
*The assumption of the exchange rate for the third quarter onward has been revised from the previous forecast of 130 yen/$ announced
on July 27 to the current forecast of 140 yen/$.

10/25

2-2 Full Year Causes of Fluctuation in Consolidated sales

Sales are expected to increase due to the impact of yen depreciation andrising steel prices
Increased

1,644

sales

gain+19

Impact ofMaterial

volumeincreased

price+48

customer-received

Exchangematerials forconversion

Exchange （100 million yen）

1,850+67

stamping△44

Selling price

+145

△30
3Q以降
Currency
為替前提
assumption
140円/$
from 3Q
onwards
is￥140/$

FY2021

Sales ＋20.5billion

FY2022
Forecast

11/25

2-3 Full Year Causes of Fluctuation in Consolidated Operating Income

Efforts to improve costs are expected to be less effective due to changes inproduction volume, and incomes are expected to decline for the full year

107

（100 million yen）

Selling price

Increased△30salesMaterialvolumeprice△15

ExchangeLaborcost

Cost

Depreciation△13(excl. dies)△12improvement
Expenses△4FY2021

OtherGain

85+13+19+24△4Operating Income △2.2billion

FY2022
Forecast

12/25

2-4 Full Year Consolidated Business Segments
Sales increased and income decreased for stamping & molding and valves（100 million yen,％）

Sales

Stamping & Molding

Operating Income

FY2021

FY2022

ResultForecast

Gain&Loss

1,142

1,312+169(The Impact of increased
customer-received materials forstamping)YoY Rate

FY2021

FY2022%Change

ResultForecast

Gain&Loss%Change+14.84939△10△20.8

4.3%

3.0%

△1.3P

5846△1211.7%

8.6%

△3.1P

※ (△44)

Operating Income Ratio

ValvesOperating Income Ratio

YoY Rate

499535+35+7.0△21.1* FY2022 Sales will be expected decrease 4.4billion since FY2022 Q4 due to the impact of increased customer-received materials for stamping.
No impact on income.

13/25

2-5 Full Year Consolidated Regional Segment
Sales and income are expected to increase and decrease in Japan, Europe, and theU.S., while sales and income are expected to increase and increase in Asia.
（100 million yen,％）SalesJapan

Operating IncomeFY2021

FY2022

ResultForecastGain&Loss687690+2(The Impact of increased
customer-received materials forstamping)YoY Rate

FY2021

FY2022%ChangeResultForecast

Gain&Loss%Change+0.36138△23△38.2

8.9%

5.5%

△3.4P

139△42.2%

1.2%

△1.0P

3137+59.2%

8.8%

△0.4P

※ (△44)

Operating Income Ratio

Europe & America

612738+125+20.5

Operating Income Ratio

Asia
Operating Income Ratio

YoY Rate

344422+77+22.5△34.6+16.8* FY2022 Sales will be expected decrease 4.4billion since FY2022 Q4 due to the impact of increased customer-received materials for stamping.
No impact on income.

14/25

2-6 Consolidated Capital investments and Depreciation
Investments for future growth are progressing as planned

Capitalinvestment（100 million）

Depreciation
300
39

220

Asia
Europe＆America

48

235

49

162
18

59

186

165

48

21
181

146

25

23

33

38

77

84

85

92

102

'18

'19'20'21'22(予)

24

35
213

26

164

Japan

112

'18

84
'19'20119'21'22(予)forecast

26

142

127

27

61

（100 million）

26
46

57

forecast

15/25

2-7 Return to Stockholders
A-（stable)
Long-termIssuer Rating
at JCR

Dividend forecast is 1 yen higher than the previous year,
and the dividend payout ratio forecast is 30%
Interim dividend

Year-end dividend

連結配当性向

7060

30.3%
22.8%

25.0%

25.0%

5040

3330
20103019141416FY2018

FY2019025.3%

(Yen)

41

4225

221620

FY2021

FY2022332310FY2020※From May 2022 to August 2022, approximately 950,000 shares of treasury stock
will be acquired (approximately 1 billion yen)

16/25

１．Financial Results for Q2
２．Full Year Forecast for FY2022
３．Sustainability Management

17/25

3-1 Weave “OCEAN-22”as a Warp, SDGs as a Weft

OCEAN-22

SDGs・ESG

Business activities

Fostering trust with stakeholders
Solving social and customer
issues through products

Stamping &Molding
Product
BusinessNewValve
Product ProductBusiness Business

Minimizing environmental load
2030 target: 50% reduction in CO2 emissions

Respecting human resources andtheir active participation

PACIFIC VALUES “Dreams & Challenges” ”Trust & Respect”“PACIFIC Environmental Challenge 2050

Contributing to prosperous and sustainableliving in next-generation mobility society
through “ monozukuri

Passion in Creating Tomorrow
PACIFIC GLOCAL VISION18/25

3-2 Efforts to minimize Environmental Load
Setting milestones and accelerate efforts in the “PACIFIC Environmental Challenge 2050”
Achievement ofannual target

Carbonneutrality

Mitigation ofandadaptation toclimatechangeSDGs

Item(FY2021
Result)85.2(kt)
CO2emissions▲9.7%
compared
to 2019

2,256(t)Sustainable
resourcesuse

Amount ofindustrialwastes

Minimizing
Environme
ntal load
Water
usage

2050
Targets

50% reduction

NetZerocompared to2019

Domestic▲36.9%
Overseas▲24.2％

reduction in overseas

1,374(k㎥)▲21.2%
compared to2019

30%

Minimumusage

compared to2019

Optimalusage

・CO2 emission…▲50％・Renewable energy usage ratio … 20％

Projection
なりゆきBaseline year
2019
100

Daily

60%
reduction in Japan

compared to2019

Conservationof waterresources

2030
Targets＜ 2030 Mid-term Goal ＞

CO2排出量CO2 emissions(%)

Materiality

Current
Statusimprovements
日常改善
Innovative
革新技術
Technology

50

Renewableenergy
再エネ

Improvement of
排出係数改善0'19 '20'30

年度

'40

Formulationof Pacific Environmental Challenge 2050
基準年
[PACIFIC環境チャレンジ２０5０」策定

Minimumusage'50

Emission Factors
for Electricity

CO2排出量ネットゼロ

Net ZeroCO2Emissions

Case studies：・Introduction of renewable energy, optimal operation ofheating furnaces, compressors, etc.
・Recycling of scrap rubber, conversion of sludge into materials
・Reduction of water consumption by downsizing theelectrodeposition coating equipment

19/25

3-3 Expansion of UHTSS products by cold stamping and production bases

Replaced hot stamping with cold stamping products of 1180MPa material
Received Toyota Motor Corporation’s

New Crown Project Award

Expansion of production basesin the U.S. and China＜ Ohio, U.S.A. ＞

FR PILLAR OUTER
adopted in this project・Orders increased due to the shift to localization of battery
product
・Improved productivity through building expansion and layoutchanges
・Production capacity increased by 10%＜ Tianjin, China ＞

・Realization of cold stamped ultra high tensile strength 1180MPa parts
with long and difficult shapes・Design optimization by CAE
analysis, expansion of the stamped body shell parts
・Pillar products are narrow and difficult to form to improvevisibility for drivers

・Expansion due to increased production of electric vehicles
by major customers
・Third large press machine installed, production capacity
increased by 20%

20/25

3-4Product development for electrified vehicles

Promote development and sales expansion of control valves and soundproofing
urethaneNoise reduction coverControl Valves for EVfor Electric Compressors
EndothRefrigeration
Cycle

ermy
Heat
exchanger

Expansion valvesCompressor

Heatexchanger

Heat

exchanger

How
Heating
WorksENGINEEngineCoolant※ Engine
1 dis-continued

Heating

Electric expansion valves for BEV・Manufactured with Urethane form molding
Techniques
・For new noise generating instead of engine sound・Developing for adoption in EV noise reduction

growing needs increasingly

・For heat management systems Developmentand promotion of control valves
Development completed of electric
expansion valve for BEVs

・Promote sales expansion to OEMs

Noise reduction cover
For ElectricCompressors

and system manufacturers globally
21/25

3-5 Technology and product development in new fields
Promoting new product development utilizing core technologies
New product development that leads tosolving social issues

TPMS coretechnology
Sensing Wireless+“e-WAVES” , the multi sensing logger
Received “Cho” Monozukuri Parts Grand Prize×Marketneeds
demand formonitoring
Data Businessdetection sensor
・Participation indemonstration“Japan Brand Award “of 2022
・High contribution to society, such as being used to transport vaccines
・Evaluated for high originality, versatility, convenience, and economy

experiments by theMLIT

App・Cloud・ＡＩ
Cattle body condition monitoring

・With water ingress“CAPSULE SENSE”

・Launched from June 2022
・Direct measurement in cattle stomach・Reduce monitoring burden withAI analysis

・Sensing temperature, humidity, collision, location,brightness

air-pressure and・Real-time confirmation of the transport status of pharmaceuticals
and foodstuffs

22/25

3-6 Introduction of renewable energy・New Plant Construction

Promoting carbon neutral initiatives and aiming to achieve CO2emissions reduction targets
Use of renewable energy

New higashi-ogaki plant

Kurihara Plant with solar panels installed

Appearance image of Higashi Ogaki Plant

・Sequential switch to renewable energy for purchased
electricity at domestic plants⇒Kyushu and Tohoku achieve 100% renewable electricity
・Introduced solar power generation at 7 domestic and 3
overseas plants

・Enhancing press production capacity in anticipation ofprogress in electrification
・Global mother factory pursuing manufacturing efficiency
・Incorporation of measures for carbon neutrality
・Creating an environment where employees can work
enthusiastically

23/25

3-7 Efforts and Evaluation toward Sustainability Management
Promoting based on the Group's key issue "Materiality"
Sustainability Initiatives and Disclosure＜Respecting human resource and their active participation＞
・Respect for human rights：Formulation of human

Evaluation by External Organizations
・Selected for CDP’s “ Supplier Engagement Rating”

rights policy/ Conducting Human Rights Surveys

Leaderboard for 2 Consecutive Years・Health management：Health Declaration,

・Awarded the ” Silver Medal ” in EcoVadis rating

Safe and secure workplace culture
・D&I, create a comfortable work environment ,Human resource development, etc.
＜ Disclosure ＞ ・Published of Sustainability Report

・ Selected for “FTSE Blossom Japan Sector Relative Index”
・ Selected under the “2022 CertifiedHealth & Productivity”（Large Corporate Sector）

・Materiality progress and KPI reporting
・Enhancement of disclosure such as TCFD

24/25