(No Explains)(No Explains)Since the emergence of COVID-19 in 2020, we have been working on various activities under the policy of
keeping our feet on the ground in GLOCAL, with the primary focus on preventing infection and maintaining
employment and production. In the first quarter of FY2021, performance was favorable due to the cost
reductions we have been pursuing as well as strong customer production.
From the latter half of the second quarter to the first half of the third quarter, we thoroughly implemented
measures to improve profitability, including measures to close offices, cost reductions, and fixed cost
reductions, in the face of changes in the environment, including a significant reduction in customer production
due to the impact of the spread of COVID-19 infection on parts supply in Asia. In November, the COVID-19
impact diminished and by December it had recovered to normal levels.
In the fourth quarter, customers continued to make production adjustments due to the prolonged shortageof semiconductors, while earthquake and cyber-attacks also had a negative impact, resulting in slightly lowerthan-expected automobile production by customers.
Although it is difficult to predict the future, we will continue to respond to customers' production fluctuations
and establish a supply chain structure in GLOCAL.

In the fourth quarter, net sales increased 4% from the previous quarter to JPY44.4 billion, but operating
income fell 25% from the previous quarter to JPY2.9 billion due to higher costs resulting from higher material
prices and production fluctuations.
For the full year, sales increased 9% from the previous year to JPY164.4 billion. Operating income increased
19% YoY to JPY10.7 billion, with a profit margin of 6%. Ordinary income increased 30% to 14.6 billion, with aprofit margin of 8%. Net income increased 22% to JPY9.8 billion with a profit margin of 6%. Profitability
improvement activities that have been continuously promoted during the COVID-19 pandemic have resulted
in the highest profits for each business.

The main reason for the increase/decrease in net sales was a JPY3.5 billion decrease in the press business dueto the application of the revenue recognition standard in Japan. Although there were production adjustments
due to shortages in the supply of parts for semiconductors and other products, net sales for the full year
increased JPY14 billion to JPY164.4 billion due to an increase in sales volume and the effect of foreign currencytranslation due to the yen's depreciation.

Operating income increased JPY1.7 billion from JPY8.9 billion in the previous year to JPY10.7 billion, mainly
due to a recovery in sales volume and cost improvement, despite an increase in labor costs and expenses fromincreased production.

Sales in the press and resin business increased 9% YoY to JPY114.2 billion. Operating income increased 25%
to JPY4.9 billion.
Sales in the valve business increased 9% to JPY49.9 billion. Operating income increased 16% to JPY5.8 billion.

Sales in Japan decreased 2% YoY to JPY68.7 billion. This represents an increase of JPY2 billion before theapplication of the revenue recognition standard. Operating income increased JPY1.8 billion to JPY6.1 billion.
Sales in Europe and North America increased 17% to JPY61.2 billion. Operating income declined 12% to JPY1.3
billion.
Sales in Asia increased 24% to JPY34.4 billion. Operating income increased 66% to JPY3.1 billion.

In the second quarter of FY2021, sales and profits declined due to a significant decrease in production caused
by customers’ parts shortages. Although production has gradually recovered since the third quarter, earnings
were lower than the previous year due to labor costs and expenses incurred as a result of production
fluctuations. We will continue to work on improving profitability by establishing a system that can flexibly
respond to production fluctuations so that we can generate profits when production increases.

Sales are expected to increase 8% from the previous year to JPY178 billion. Although JPY9.6 billion in press
parts will be received for a fee in the second half of the year, which will reduce sales, we expect a gradual
recovery in sales volume from the first half of the year.
Operating income is projected to increase 16% over the previous year to JPY12.5 billion, with a profit marginof 7%. The assumed exchange rate is JPY120. The exchange rate sensitivity is JPY100 million per yen per year.

Net sales for the full year are projected to be JPY178 billion, up JPY13.5 billion from JPY164.4 billion in theprevious fiscal year, due to an increase in sales volume, despite the impact of lower sales due to the shift toreceiving press parts for a fee.

Operating income for the full year is expected to be JPY12.5 billion, up JPY1.7 billion from the previous year.
As production recovery is underway, we expect production fluctuations, so we will strive to minimize losses
by making improvements, maintaining the supply chain, and flexibly changing the production system.

Sales of the press and resin business increased 7% YoY to JPY122.7 billion, including a decrease of JPY9.6 billion
due to the impact of the change to receiving press parts for a fee. Operating income is projected to increase
34% to JPY6.6 billion.
Sales in the valve business increased 10% YoY to JPY55 billion. Operating income is projected to be JPY5.9
billion, unchanged from the previous year.

Sales in Japan were JPY69.8 billion, unchanged from the previous year, and operating income increased 4% toJPY6.4 billion. Sales in Europe and North America increased 6% to JPY65.2 billion, and operating income rose
38% to JPY1.9 billion. Sales in Asia increased 24% to JPY43 billion. Operating income is projected to increase
16% to JPY3.7 billion.

While we had been strategically investing in facilities until FY2019, we have been making capital investments
during the COVID-19 pandemic by identifying necessary investments that are effective.
In FY2021, we invested in building expansions, large presses, and new TPMS lines at our three major bases inJapan, North America, and China.
In FY2022, we expect to invest JPY30 billion. In addition to the usual investment in production preparation forthe launch of new products, the construction of a new carbon-neutral plant in Ogaki, amounting to JPY13
billion, and for the introduction of press equipment to increase production. In addition to increasing
production capacity, we will build a more efficient production system, which will include reallocation of
production equipment lines, to meet customer needs.

In the COVID-19 pandemic, we reduced interest-bearing debt by JPY4.1 billion last fiscal year by curbing
investment expenses and strengthening cash management within the Group. With some major investmentsin the current fiscal year, we will strive to manage funds efficiently.

Given the significant recovery in earnings from the previous year's forecast, we have revised our annual
dividend forecast to JPY41 per share, up JPY8 from the previous year, maintaining a dividend payout ratio of
25%. The year-end dividend will be JPY25 per share. For the next fiscal year, we plan to increase the annual
dividend by JPY1 to JPY42 per share, with a payout ratio of 25%.

At a meeting of the Board of Directors held on April 27, the Company passed a resolution regarding theacquisition of treasury stock. The Company will repurchase up to 1.3 million shares of its common stock at a
total repurchase price of up to JPY1 billion. The acquisition period will be from May 2, 2022, to August 31,
2022.
I would like to proceed with the objectives of improving capital efficiency, including shareholder returns, ROE,
ROA, etc., and implementing flexible capital policies.

The business environment surrounding our company is characterized by social issues such as carbon neutrality
and the SDGs, a once-in-a-century period of major change in the automotive industry, medium-term structuralchanges, still continuing the impact of COVID-19 related issues, as well as other unexpected changes as of thesituation in Ukraine and cyberattacks.
As industry trends such as electrification, weight reduction, and digital transformation continue to advance,
we are also promoting sustainability management from an ESG perspective in order to assess business risks
and opportunities and sustainably enhance corporate value. Under the brand slogan, "create tomorrow withall our hearts," we are promoting specific action plans as a unified group.

Under our long-term vision, PACIFIC GLOCAL VISION, we formulated our medium-term management plan
OCEAN-22 in 2019 and are working to become a company that contributes to the next generation by weaving
the four themes of sustainability based on the SDG concept into a weft thread, with the press/resin, valve
TPMS, and new businesses of OCEAN-22 as the warp threads. We are striving to become a company that
contributes to affluent and sustainable life the next generation mobility society through manufacturing.
As I mentioned earlier, our forecast for this year, the final year of OCEAN-22, is expected to achieve almost allof our targets, and we will manage our business flexibly in light of changes in the environment.

The press and resin business accounts for 70% of our sales. In the area of pressed products, we are working
on body frame parts that contribute to weight reduction and collision safety, battery cases for hybrid vehicles,
and functional parts such as trunk hinges, in preparation for EV shift, and we supply them to the Toyota Group
as our main customers.
Our resin products include engine covers with sound and vibration isolation functions, wheel caps, center
ornaments, gas pedals, and other interior and exterior products that contribute to design, etc. Our products
are used globally by the Toyota Group, Honda, Suzuki, Daihatsu, Subaru, and others, and we have secured ahigh market share.

In the valve products business, we provide products that take advantage of fluid sealing technology, including
valve cores and tire valves, which are our founding products, as well as TPMS, valves for car air conditioners,and valves for industrial machinery. We have a 100% share of the tire valve market in Japan and approximately
50% overseas.
Our global market share for car air conditioner charge valves is 50% and 80% for relief valves, and our products
are highly regarded for their safety and functionality.
With the acquisition of the valve business of Schrader Business in 2018, we have also added valves forindustrial and aircraft applications to our product lineup, thereby expanding the scope of our business. We
have built a system that enables us to have customers, develop, produce, and sell our products in four regions
around the world by adding the Schrader brand, which is strong in the US and European markets, to the
PACIFIC brand, which is strong in the Japanese and Asian markets.

As the automotive industry becomes increasingly electrified, existing businesses are accelerating thedevelopment of technologies to reduce CO2. We are improving our ability to analyze vehicle body structures,increasing the efficiency of ultra-high-tensile strength, promoting weight reduction for body shell parts,
utilizing anti-vibration and soundproofing technologies for vehicle power plant, developing urethane partsand other components to counteract noise in BEV vehicles, and developing control valves that can be applied
to heat pump systems for car air conditioners in EV vehicles, which have no heat source.

In light of electrification, vehicle weight reduction and improvement of collision safety and fuel economy is
one of the major issues in vehicle frame design, and there are increasing demands to reduce vehicle bodyweight while reducing CO2 emissions during component production.
From the viewpoint of life cycle assessment, LCA, and carbon neutrality, we have been strategically developing
technologies for cold super high-tensile processing mainly, which uses less energy during parts production
than hot stamping. We have advanced our press production technology and developed a process to replace
hot stamping with cold stamping, and have established a production system in Japan, the US, China, and Asia
for3,000-tons transfers that can perform cold super-high-tensile processing.
Furthermore, we are deepening our analysis systems, including structural analysis, collision safety, and CAE,
and incorporating manufacturing requirements unique to component manufacturers at the design stage toreduce costs, reduce weight, enhance competitiveness, and strengthen our ability to make proposals. In the
future, we intend to further strengthen our structural analysis and proposal capabilities and promote thedevelopment and sales expansion of products for electric vehicles.

As a result of the efforts I mentioned earlier, cold-pressed parts made of ultra-high tensile strength and 1470
MPa material have been adopted for the roof center reinforcement of the new Lexus NX, and mass production
has begun.
As for sound and vibration isolation technology for resin products, there is a new noise reduction technology
for electric vehicles, and we have developed a soundproofing cover for electric compressors of air
conditioners, which has been decided in future electric vehicles, we will continue to meet customer needs bydeveloping appropriate materials and shapes for appropriate parts.

In the area of valve business, we are also developing new products, seeing carbon neutral and electrification
as growth opportunities.
Air conditioners that can no longer use engine waste heat due to electrification are being converted to heatpump systems. We are developing multi-functional electric expansion valves and new control valves byutilizing the technology of heat pump systems that cultivated in home appliances.
Currently, we are working with Schrader to speed up and improve the efficiency of technological development
in Japan, the US, and France, and are working closely with our customers in each region to develop and expand
sales.

With OCEAN-22, we have also taken on the challenge of the non-automotive sector by leveraging the coretechnology of our existing business. TPMS monitors tire pressure, temperature, and acceleration while thevehicle is in motion and informs the decrease of air pressure to driver by wireless transmission, thus protecting
safety while driving and preventing fuel consumption deterioration. In recent years, demand for condition
monitoring has been increasing, and we are developing IoT-related products based on the core technologies
of TPMS sensing functions and wireless technology, with AI implemented according to the product.
In the pharmaceutical industry, GDP guidelines have been introduced for quality assurance in the distribution
process, and in the food industry, HACCP regulations have been tightened for product control in the supply
chain and transportation process.
In addition, demand for monitoring is increasing in various industries, such as individual management needs
to improve productivity in the livestock industry. We will continue to develop not only hardware but also
solutions utilizing AI, IoT, and ICT.
I would like to describe an example of one of those products.

e-WAVES, a multi-sensing logger capable of monitoring conditions during the transportation process, waslaunched last April. This product was developed for pharmaceuticals and food products. Thanks to sensing
technology, the real-time status during transportation can be grasped, and the status can be understood on
a PC or smartphone through the Crowd. The type of product capable of temperature measurement fromminus 80 to plus 40 degrees Celsius is being used for control transportation and storage of vaccines.
In addition, there have been strong inquiries for the transportation of food products and pharmaceuticals.
We are expanding our product lineup with further functional enhancements. We will continue to develop andexpand sales of this product that provides new value for logistics solutions.

The needs and challenges of the cattle industry include increased number of cattle per household, decreased
productivity due to lower conception rates, and economic losses due to disease, illness, and accidents. To
solve these issues, we have developed our new product of CAPSULE SENSE, a cow body condition monitoring
system that combines our sensing and AI analysis technologies.
Using our TPMS technology, the capsule is placed in the stomach of a cow to collect and analyze sensing data
and detect signs of changes in body condition.
This single unit can detect estrus, parturition, disease, etc. With this superiority, we have completedmonitoring tests with farmers and plan to start sales at the end of May.
We will continue to develop and deploy various products that contribute to solving social issues.

We have identified four themes and 15 materiality’s as key sustainability issues.
Regarding the resolution of social and customer issues through our products, we have just explained thetechnology development trends. In terms of minimizing environmental impact, we have formulated the
PACIFIC Environmental Challenge 2050 and are currently addressing this issue. I would also like to explain inturn about respect for human resources and their success, as well as trust with stakeholders.

We have formulated the PACIFIC Environmental Challenge 2050 for 2020. Our 2050 target, based on 2019, isto achieve net zero CO2 emissions, minimize waste and emissions, and minimize water emissions. We arecommitted to achieving our mid-term goals for 2030, which are a 50% reduction in CO2 emissions and a 20%
renewable energy utilization rate.
In addition to daily management and innovative technologies, we are also developing the use of renewableenergy. I would like to provide the following explanation.

As for daily improvements and initiatives for equipment installation, the energy conversion changed boiler
fuel from heavy oil to city gas. Power reception is replaced with special high voltage. We are also working to
reduce CO2 emissions by downsizing our cationic coating electrodeposition equipment to save energy.

Regarding efforts to utilize renewable electricity, we would like to purchase renewable electricity derived
from hydroelectric and wind power generation, introduce in-house power generation using solar panels, andpurchase renewable energy certificates, etc., as appropriate at each location.
Regarding the switch to renewable energy electricity, we have switched 100% of all externally purchased
electricity at Tohoku and Kyushu Plant to electricity derived from renewable energy since this April. We willcontinue to switch to renewable electricity at our plants in the Chubu region, aiming to achieve our target of
a 20% renewable energy utilization rate.
Solar power generation will be installed at seven plants in Japan and two plants overseas. In the current fiscal
year, the PPA system was utilized and installed at the Taiwan subsidiary in August 2021 and at the Tohoku
and Kurihara plants in January 2022. We intend to gradually introduce solar power generation in the future.

With regard to industrial waste emissions, our goal is to minimize emissions by 2050. For FY2030, we aim to
reduce waste emissions by 60% in Japan and by 30% overseas.
Specifically, our in-mold film decoration technology has made it possible for resin products to be 100%
recyclable by eliminating the need for plating. In the area of valve products, we are also working on andpromoting technology to recycle scrap rubber generated in the tire valve manufacturing process and recycle
it as a material. We will continue our efforts to reduce waste emissions in order to utilize these sustainable
resources.

As a solution to social and customer issues through our products, we would like to contribute to cost reduction,weight reduction, and reduction of environmental impact through LCA by utilizing our technologies.
In recognition of these efforts, we received 27 commendations from customers globally in FY2021.
For example, we received an award of excellence from Aisin Seiki for our innovation of the forging process
and elimination of coating treatment in the manufacturing process, thereby reducing CO2 emissions, waste
fluid generation, and costs.
In the area of resin products, we have developed engine undercover made of GFRP (Glass Fiber Reinforced
Plastic), which is strong and lightweight, and it has been adopted for the new Land Cruiser. We achieved asignificant weight reduction of 76% compared to conventional products and received a project commendationfrom Toyota Motor Corporation.

As a manufacturing company, we have been working on the basics of manufacturing and human resource
development. We promote the creation of a workplace in which all employees can work with peace of mind
and security in good physical and mental health, and a system in which diverse human resources can exercise
their imagination and spirit of challenge.
In order to promote diversity, we have formulated a human rights policy, promoted work-life balance byimproving productivity, and made clear our health declaration, and have been certified as an excellent healthmanagement corporation. We will continue our efforts to improve employee engagement and expand andmaximize human capital.

With regard to the above-mentioned sustainability management, ESG initiatives, and various KPIs, we are
actively promoting information disclosure on our website and in our Sustainability Report.
In May last year, we endorsed the TCFD, an international framework for climate change-related information
disclosure. In line with the framework of the proposal, we will continue to disclose information based on therisks and opportunities that climate change poses to our business.
We have decided to promote these activities in cooperation with our supplier and endorse the Declaration ofPartnership Building.
In recognition of our efforts to date, we have received recognition from external organizations, including a
Leadership Level A Minor in the CDP Climate Change Assessment for two consecutive years and selection to
the Leader Board in the Supplier Engagement Assessment for two consecutive years.
We will continue to strive for timely and appropriate information disclosure along with sustainability and ESG
initiatives.

As a global mother factory, we are building a factory that pursues efficiency in manufacturing, incorporates
innovations to achieve carbon neutrality, and serves as a workplace environment where employees can workwith vitality.
From the factory design stage, energy-saving structures, selection of building materials, optimization ofdriving force, selection of high-efficiency equipment. We are building a mother factory that will be an efficient
production line including logistics, solar power generation, renewable energy introduction and energy saving
ventilation, placement of air conditioning system, etc., promoting the creation of a comfortable environment.
We plan to invest an initial JPY13 billion in the new plant, and in addition, we plan to introduce large presses,
including a 3,500-ton ultra-high-tensile presses, to meet future needs for vehicle configuration and weight
reduction due to the shift to electrification.
In the future, we would like to relocate the die building plant and construct an R&D center and other facilities
in order to consolidate production technology, production development, and new product development
divisions to speed up development and improve production efficiency.
Lastly, as for the next mid-term plan, we have set 2026 as the target year, which is the halfway point toward
2030, the 100th anniversary of our founding, taking 2 steps for reaching 2030, we formulated mid-term
management plan OCEAN-26 based on a thorough understanding of social conditions, market and customer
trends.

Lastly, as for the next mid-term plan, we have set 2026 as the target year, which is the halfway point toward
2030, the 100th anniversary of our founding, taking 2 steps for reaching 2030, we formulated mid-term
management plan OCEAN-26 based on a thorough understanding of social conditions, market and customer
trends.