(No explains)(No explains)

In the last three quarters, there was a negative impact due to production cutbacks atmajor customers due to parts shortages that continued from the latter half of the second
quarter until October, but the impact diminished in November and normal operations
were restored in December. We secured our production system and followed theproduction fluctuations of our customers.
As a result, the Group's consolidated net sales for the first three quarters of the fiscal year
have increased 11.1% YoY to JPY120 billion. As for profits, operating income was JPY7.7billion, ordinary income was JPY10 billion, and the net income was JPY7.4 billion, all ofwhich were record highs for cumulative third quarter period, thanks to the improvementof the profit structure through fixed cost reduction activities in the previous fiscal year
and the continuous promotion of cost improvement.

1

Net sales increased by JPY12 billion from JPY108 billion in the previous three quarters toJPY120 billion, mainly due to the JPY12 billion effect caused by increased sales volume
and the JPY2.7 billion negative impact of the adoption of revenue recognition accounting
standards.
If we excluded the impact from the revenue recognition accounting standards, sales
would be at the same level as the record high of JPY123 billion in FY2019.

2

Operating income increased by JPY2.8 billion to JPY7.7 billion from JPY4.9 billion in theprevious three quarters, mainly due to higher profits from increased sales volume andimproved cost of sales.

3Sales in the Stamping & Molding segment increased by 9.7% to JPY82.9 billion, andoperating income increased by 76.5% to JPY3.2 billion. As a result of the adoption of therevenue recognition accounting standards, net sales decreased by JPY2.8 billion from theprevious standard.
Sales in the Valve Manufacturing business increased by 14.2% to JPY36.9 billion, andoperating income increased by 47.6% to JPY4.5 billion.

4

Net sales in Japan decreased by approximately 1% YoY to JPY50.7 billion. This isessentially a 5% increase in revenue, excluding the impact of JPY2.7 billion decrease dueto the adoption of revenue recognition accounting standards. Operating income increased
by 50.4% to JPY4.6 billion.
Sales in the U.S. and Europe increased 22.1% to JPY45.5 billion, and operating income
increased 132.7% to JPY0.8 billion.
Net sales in Asia increased by 21.3% to JPY23.7 billion and operating income increased
by 75.1% to JPY2.2 billion.

5

In the first three quarters of the fiscal year, we achieved record-high profits by promoting
cost improvement despite customers' production cutbacks. For the fourth quarter, we
assume that the production level will be at the same level as the third quarter, as a rapid
recovery in production is not expected.
The exchange rate for the fourth quarter is assumed to be JPY110 to USD1.
As a result, we have revised our full-year forecasts for the fiscal year ending March 31,2022, from those announced on October 27, 2021. Net sales are expected to decrease by
JPY3 billion to JPY161 billion, and operating income is expected to decrease by JPY0.5
billion to JPY10 billion. There are no revisions to the ordinary income and the net income.
Exchange rate sensitivity is JPY100 million per JPY1 per year.

6For the full year, we forecast net sales of JPY161 billion, an increase of JPY10.5 billion
from JPY150.4 billion in the previous fiscal year, mainly due to an increase in sales
volume of JPY10.5 billion and a decrease in sales of JPY3.5 billion due to the applicationof revenue recognition accounting standards.

7

Operating income for the full year is expected to be JPY10 billion, up JPY1 billion from theprevious year. While maintaining our production system, we will continue to focus on
improving profitability by flexibly following the production fluctuations of our customers,
optimizing our production operation system, and reviewing expenses to minimize losses.

8This is the forecast by business segment for the full year. In the Stamping & Molding
segment, we forecast net sales of JPY112.2 billion, up 7% from the previous fiscal year,and operating income of JPY4.1 billion, up 5%. The forecast includes an estimateddecrease of JPY3.5 billion in net sales due to the impact of the application of revenue
recognition accounting standards.
Sales in the valve manufacturing business are expected to increase 6% YoY to JPY48.5billion, and operating income is expected to rise 18% to JPY5.9 billion.

9Net sales in Japan are expected to decrease by 2.4% YoY to JPY68.6 billion. Excluding theimpact of the JPY3.5 billion decrease due to the adoption of the revenue recognition
accounting standards, this represents a 3% increase in revenue in real terms. Operating
income is expected to increase by 6.2% to JPY5.5 billion.
Sales in the US and Europe increased 12.9% to JPY59.1 billion, and operating income
increased 2.1% to JPY1.6 billion.
Net sales in Asia are expected to increase by 19.9% to JPY33.3 billion and operating
income by 36.9% to JPY2.6 billion.

10

In the first half of this third quarter, the impact of the production cutback from thesecond quarter continued, but the second half saw a sharp recovery, with operations
reaching normal operating levels in December. The Group flexibly followed customers'
production fluctuations and secured sales on par with the first quarter, but expenses werehigher than the first quarter due to temporary expenses and labor costs caused by rapid
production changes.
Production in the fourth quarter is also expected to be on par with the third quarter ascustomers’ production cutback continues. We will continue our efforts to improve
profitability and minimize losses.

11

Continuing from last year, we are implementing capital investments for this fiscal year byidentifying effective and necessary investments. We plan to invest JPY18 billion in plantand equipment and JPY16.3 billion in depreciation and amortization, an increase of JPY1.7
billion from the previous fiscal year.
In addition to preparing for production associated with the launch of new products, weare investing in building expansion and the addition of a large press machine at our threemain bases in Japan, North America, and China, despite the pandemic. In addition toinvestments designed to increase production capacity to meet the needs of ourcustomers, we will also invest in the reallocation of production facilities and lines to build
a more efficient production system, thereby strengthening our competitiveness.

12

Looking back over the past three quarters, after the sharp fluctuations in production causedby the shortage of parts supply until October, production recovered from November and wasgenerally in line with the previous forecast until December.
As for the fourth quarter, although production will be reduced compared to the previous plan,
we assume that production will be on par with the third quarter.
We will strive to maintain the constitution strengthened by the profit improvement to date,prevent the infection thoroughly within the Company, and maintain the production system toensure stable business operations.
Looking ahead to the next fiscal year, the external environment will continue to be uncertain
due to risks such as the prolonged effects of the coronavirus and concerns about the supply ofsemiconductors and other products, but we will strive to maintain the profit structure that wehave strengthened and maximize the effects in the time of production increase.
In addition, the next fiscal year will be the final year of our medium-term management plan
OCEAN-22. We will have a better picture of the situation when we announce our year-end
financial results, and we plan to announce a new medium-term management plan based on
the results.
With an eye on the future expansion of electrification and the transition to carbon neutrality,
we have prepared a plan that incorporates the strengthening of our technological and productcapabilities in existing fields, the reinforcement of our organization by further investing
resources in new fields, and the enhancement of our sustainability initiatives.

13