Consolidated Financial Results
for the Six Months Ended
September 30, 2021
DaikyoNishikawa Corporation

November, 2021
2014年8月

Table of Contents

1. Financial Results

Page 2

2. Financial Forecast for Fiscal 2021

Page 10

3. Starting Operation in U.S.A.

Page 15

4. Resin Backdoor / Tailgate Updated Status Page 18
5. Sustainability Initiative

Page 21

6. Carbon Neutral Strategies

Page 26©DaikyoNishikawa Corporation All rights reserved.

P.1

1. Financial Results©DaikyoNishikawa Corporation All rights reserved.

P.2

Highlights

 Although production volume of major customers increased from theprevious year when production was significantly reduced due to the
COVID-19, sales decreased due to the impact of changes inaccounting standards.
 Operating income was a loss of 1,443 million yen due to the impactof operational preparation costs for the new plant in the UnitedStates and operation loss because of sudden fluctuations in
production.

©DaikyoNishikawa Corporation All rights reserved.

P.3

Consolidated Profit and Loss Statement
Although production volume of major customers increased, sales
decreased due to the impact of changes in accounting standards.
Profit declined due to factors such as operational preparation costs for the
new plant in the United States.
(Millions of yen)

Financial
Results Ended
Sept.30, 2020

Financial
Results Ended
Sept.30, 2021

Net Sales

62,99954,644-8,355-13.3%

Operating
Income57-1,443-1,500－Ordinary
Income231-1,147-1,379－Net Income
Attributable to
Owners of Parent-159-1,307-1,147－-2.25yen-18.41yen-16.16yen－

Net Income
per Share©DaikyoNishikawa Corporation All rights reserved.

P.4

Changes(Y on Y)

Changes(%)

Net sales increase or decrease factor(Millions of yen)
80,00070,0009,917-13,984

60,000-4,59850,000-11297

・Impact of production
volume increase

40,00030,00062,99954,64420,00010,0000
2021年3月期
売上高

製品売上

収益認識
会計基準適用©DaikyoNishikawa Corporation All rights reserved.

要具売上

P.5

その他売上

為替影響

2022年3月期
売上高

Operating income increase or decrease factor(Millions of yen)
200

57
0
・ Increase in development costs
・ Increase in preparation costs forthe new US plant

-200
-400

103
-117

-1,281-600-10-1,443

-800

767
-962

-1,000-1,200-1,400-1,6002021年3月期
営業利益

コスト改善

©DaikyoNishikawa Corporation All rights reserved.

減価償却費

P.6

その他費用

Outline of segment business performance
Segment

Outline of business performanceJapan SALES：Although production volume of major customers increased,sales decreased due to changes in accounting standards
 PROFIT：Loss of 950 million yen due to an increase in development
costs

China/Korea

 SALES：Sales increased due to mold sales in China and the impact ofJapanese currency conversion
 PROFIT：Increased due to cost reduction effect and an increase inmold sales

ASEAN

 SALES：Although production volume of major customers increased,sales decreased due to a decrease in mold sales in Thailand PROFIT：Increased due to cost reduction effect in Thailand

Americas SALES：Although production volume in Mexico increased,sales decreased due to a decrease in mold sales.
■ PROFIT：Loss of 677 million yen due to an increase in operational
preparation costs for the new plant in the United States©DaikyoNishikawa Corporation All rights reserved.

P.7

Sales by Region
Although production volume of major customers increased,sales decreased in Japan and Americas segments
due to changes in accounting standards and a decrease in mold sales.
Net sales to outside clients

Domestic

Overseas(Millions of yen)

Financial Results
Ended
Sept. 30, 2020

Financial Results
Ended
Sept. 30, 2021

(component ratio)

45,354(72.0)

China/Korea

Changes(Y on Y)

Changes(%)

39,818(72.9)-5,536（0.9Pts）-12.2%

2,360

2,849

489

20.7%

ASEAN

4,393

4,818

425

9.7%

Americas10,891

7,157-3,733-34.3%Sub total(component ratio)

17,644(28.0)

14,825(27.1)-2,819（-0.9Pts）-16.0%

Total

62,99954,644-8,355-13.3%Japan©DaikyoNishikawa Corporation All rights reserved.

P.8

Operating Income by Region
Losses in Japan and Americas segments due to an increase inoperational preparation costs for the new plant in the United States andoperation loss because of sudden fluctuations in production(Millions of yen)Domestic

Overseas

Financial Results
Ended
Sept. 30, 2020

Financial Results
Ended
Sept. 30, 2021

(component ratio)-1,000
(－)

-950
(－)

50
(－)

－

China/Korea

92

132

39

43.1%

ASEAN

138

185

46

33.6%

Americas

565

-677

-1,242－Sub total(component ratio)

796
(－)

-359
(－)

-1,156
(－)

－

Total

-204

-1,309-1,105－Japan©DaikyoNishikawa Corporation All rights reserved.

P.9

Changes(Y on Y)

Changes(%)

2. Financial Forecast for Fiscal 2021

©DaikyoNishikawa Corporation All rights reserved.

P.10

Highlights【Summary of business forecast】■Although production volume in the second half was on a downward trend, it isexpected to recover, so the estimated volume in the second half as of August
4, 2021 will remain unchanged.
■In terms of profit, although we will incorporate further cost reduction activities
in the second half, it is expected to be lower than the previous forecast due tothe impact of production cuts in the first half.
■Initially, operational preparation costs for the new plant in the United States
was expected to be 4.9 billion yen (depreciation cost, labor cost, development
cost, etc.) for the full year, but it is expected to fall below the plan due to adecrease in depreciation cost.

【Full-year efforts】■While implementing the medium-term management plan, further improve
efficiency throughout the company and further promote cost improvement byeliminating losses.
■The new plant in the United States has achieved a smooth launch of models
for Toyota, and is currently making good progress toward the launch ofmodels for Mazda in January 2022.
©DaikyoNishikawa Corporation All rights reserved.

P.11

Financial Forecast for Fiscal 2021
Although production volume in the second half was on a downward trend, theexpected volume will remain unchanged because future recovery is expected, andcost reduction activities are continued.
FY2021
Forecast

FY2021
Forecast(as of Aug 4th)

(Amended)

Changes

Changes(%)*131,000*124,000-7,000-5.3%

Operating Income

1,800

400

-1,400-77.8%

Ordinary Income

3,100

1,700

-1,400-45.2%

Profit Attributable to
Owners of Parent

1,000

0

-1,000-100.0%Operating profit
margin

1.4%

0.3%

－

－

Net Income per
Share

14.09yen

0.00yen-14.09yen－

Net Sales*Since the accounting standard for revenue recognition has been applied from the fiscal year ending March 2022, theconsolidated earnings forecast for the fiscal year ending March 2022 is based on this standard.

P.12

Capital Investment, Depreciation and R&D Expenses≪Capital Investment≫≪Depreciation≫

Decrease due to changes indevelopment and investment timing,and pursuance of efficiency

Decrease due to review of amortization
period of the new US plant※FY2021: Plan

※FY2021: Plan

35

16
(Billionsof yen)(Billions of yen)

30

4
11.8

12
10.7 10.5（Initial plan）

20.1

20
15

※FY2021: Plan

5

（Initial plan）

25.0

16.4

Re-accelerate R & D to create productsthat exceed the expectations of society
and customers(Billions of yen)

14

25

≪R&D Expenses≫

17.0

10

18.8

9.1

9.0

3.2
11.2

9.5

3

3.0

3.0

3.0

2.96
2.6

8
2

13.1

10.6

6

4.9

1.5

10
7.2

5
0

©DaikyoNishikawa Corporation All rights reserved.

4

1

2
0

0

P.13

配当
Interim dividends is 15yen as planned,
year-end dividends forecast remains unchanged
Dividends per share
40
35

28.25

30

16.25

34

18

17

28

25
20

34

19

16

9.25

12

FY2015FY2016

30

30

15

17

30

（Plan）

15（Plan）

15
10
5
0

(Yen)

10.6255.625
FY2014

16

17

15

13

15

FY2017FY2018FY2019FY2020

FY2021

Interim period

End of period※On January 1, 2016, we split its common stock into four shares.
The annual dividends for FY2014 and the interim dividends for FY2015 are calculated as dividends per share, assuming that a※ stock split was conducted.

Payout Ratio
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021(Plan)

17.0％

17.7％

18.9％

19.3％

23.2％

43.3％

83.9％

－

※FY2016：Excluding commemorative dividend©DaikyoNishikawa Corporation All rights reserved.

P.14

3. Starting Operation in U.S.A.

©DaikyoNishikawa Corporation All rights reserved.

P.15

DNUS Started its Operation
From September 2021, DNUS started production for MTMUS
 Started production of bumpers for Toyota "Corolla Cross" First time for DaikyoNishikawa group to supply the resin bumpers
adopted in Toyota passenger cars
Contribute to US made Corolla Cross's
imposing and powerful front/rear exterior
designPursuing thorough loss reduction and theshortest production process to maximize
productivity by incorporating production
process cultivated at its domestic bases
Image courtesy by Toyota Motor Corporation

1.

Model Name

Toyota Corolla Cross

2.

Production site DaikyoNishikawa USA Inc. (DNUS)

3.

Destination

Mazda Toyota Manufacturing, U.S.A., Inc. (MTMUS)
P.16

DNUS Started its Operation
Realized a variable production system that mixes products
for each OEM manufacturer
 With smooth start-up, delivery started as planned Preparations for launching a model for Mazda are also progressing
steadily for production start in January 2022.
【”OBEYA” Activity】【Building exterior】【Injection Molding】【Painting】©DaikyoNishikawa Corporation All rights reserved.

【Morning assembly】【Assembly】

P.17

4. Resin Backdoor / Tailgate
Updated Status©DaikyoNishikawa Corporation All rights reserved.

P.18

Resin Backdoor / Tailgate
Number of units for Daihatsu Motor Corporation
Focus on expanding sales with the aim of expanding adoption（Thousand Units）
Approx.690

700
Approx.620

Approx.620

Approx.600

600
Approx.520

500
400

Expanded to
New Models

Approx.360
Approx.310

300
200
Approx.110

100

Started mass
production for
Daihatsu A
segment car

Decreased due to
COVID-19

Expanded to
B segment cars

0
FY2013

FY2014FY2015©DaikyoNishikawa Corporation All rights reserved.

FY2016P.19

FY2017FY2018FY2019FY2020Resin Backdoor / Tailgate
For Expanding Business Opportunities
Started to supply for Honda all new CIVIC Realizing a highly complexed
curvy design Reduction of parts unit for
more cost improvement byintegrating components
Image courtesy by Honda Motor Co., Ltd.

Going forward, we will continue to further strengthen our resin
backdoor / tailgate business to contribute to the eco-friendly mobility
society through weight reduction.
©DaikyoNishikawa Corporation All rights reserved.

P.20

5. Sustainability Initiative©DaikyoNishikawa Corporation All rights reserved.

P.21

Towards a sustainable society
Contribute to a sustainable society through our business activities,
we will strengthen and implement measures to achieve our goals
under the SDGs Declaration.
 Announced SDGs Declaration in May 2021 based on our
corporate philosophy
 Further strengthen social contribution through businessactivities by incorporating the corporate philosophy into eachmeasure Work to promote sustainability within the company andpromote awareness reforms for each and every employee
 In order to further revitalize activities, we will identify current
issues, formulate basic policies, and consider incorporatingthem into measures.

©DaikyoNishikawa Corporation All rights reserved.

P.22

Examples of SDGs efforts 1：
Contribution to a material-cycle society
Establish a committee and started company-wide activities tominimize waste plastic generated in the manufacturing process【Waste plastic reduction activity target】
FY2020：25％Reduction compare to FY2019
FY2021：50％Reduction compare to FY2019

 Promotion of material recycling【Main efforts】
・System assessment from upstream to downstream of the
production process in order to expand the use ofrecycled materials
・Reduction of material types by material integration
・Establishment of quality assurance method for utilizationof recycled materials
・Introduction of production equipment for recycling©DaikyoNishikawa Corporation All rights reserved.

P.23

Examples of SDGs efforts 1：
Contribution to a material-cycle society Reduction of waste loss
【Main efforts】
・Expansion of material recycling
・Minimization of processing and material replacement loss
・Countermeasures for the source of defects【Outcome】
・Increased recycling rate to 95% by promoting recycling
・Significant reduction in defect rate and material replacement loss
※As a result, the 2020 target of 25% reduction was achieved【Future goals】
・Further spiral improvement of past efforts
・Establishment and operation of recycling technology for painted
products, scraps, composite materials, which were difficult torecycle until now※Aim for 50% reduction in 2021 target©DaikyoNishikawa Corporation All rights reserved.

P.24

Examples of SDGs efforts 2：
Lectures at technical societies and universities
Lecture at Universities
June
AugustHiroshima University of Economics /Hiroshima Institute of Technology
Fukuyama University

October Kindai University “Higashi Hiroshima Studies”
DaikyoNishikawa's efforts to develop added value for automobile parts

Lecture at Technical Societies
March

Next Generation Plastic Formation Technology Study Group
Efforts to develop resin materials to reduce the weight of automobile parts

May

Society of Automotive Engineers of Japan, Inc.
2021 Spring Conference Academic Lecture
Development of thermal management /NV control material model technology by MBR

June

Plastic Molding Society（32nd Annual Convention）
Research on automobile parts of unidirectional filler strengthening agent

NovemberTechnical Information Association (Technical seminar)
Interfacial properties of carbon fiber reinforced polypropylene and considerationof application to automobile parts©DaikyoNishikawa Corporation All rights reserved.

P.25

6. Carbon Neutral Strategies©DaikyoNishikawa Corporation All rights reserved.

P.26

Efforts for carbon neutrality【Main contents of DaikyoNishikawa's efforts】●Continuous productivity improvement activities（Cycle shortening・Improved utilization rate・TPM activities）●Introduction / update of energy-saving equipment（Electric molding machines・Energy saving painting equipment）
New head office / head office factory constructed with the latest energy saving●Promotion of weight reduction development⇒Reduction of physical quantity●Continuous promotion of energy saving activities
CO2tonCO2 ton/thousand units/千個

納入数あたりの排出量・指数推移
Emissions/ index changes per number of deliveries

Index
指数

6.0

120
100

5.0
4.0

100

86

3.7

76

3.2

3.0

2.8

Results:
Compared to FY2013
24%Reduction

80
60

Toward halving in FY2030

2.0

40

1.0

20

Detailed investigation of thecurrent status and planning of aroadmap ...

0.0

0FY2013
7期(2013)

FY201913期(2019)©DaikyoNishikawa Corporation All rights reserved.

14期(2020)
FY2020P.27

Examples of efforts 【Head office building】
New head office：60％ CO2 reduction effectCompared to the former head office and R & D center
15 energy saving items adopted#

Item

1 Solar power
2 Geothermal air conditioning

Content
Natural energy power
generation
Air conditioning using thenatural environment

#

Item

Content#

Item

Content

6 LED lighting

Power saving equipment

11 Double door

Power saving specifications

7 Top runner transformer

Power saving equipment

12 Human Sensor

Power saving specifications

8 Heat exchanger

Power saving equipment

13 Auto dimming lighting

Power saving specifications

3 Gravity ventilation system

Center Eco Void

4 Use of rainwater

Used for toilet and planting 9 Under-foundation insulation

Insulation effect

14 Power monitoring system

Eco monitoring

5 Gas heatpomp air conditioning

Gas CO2 reduction

Insulation effect

15 Air conditioning monitoring system

Eco monitoring# Loe-e glass

Natural ventilation and daylighting
by Center Eco Void

Use of geothermal heat

Use of rainwater（Toilet/Planting）©DaikyoNishikawa Corporation All rights reserved.

P.28

Examples of efforts 【Painting process line】
Introduction of circulation booth

Conventional all-exhaust booth

Conventional painting booth●Contamination（Paint mist）●Solvent concentration
Couldn't control them→was exhausting everything

Introducing
a controllable
systemIntroduction ofenergy saving
equipment
Achieved 80%
Recycle●Utility equipment⇒Energy saving support●Achieve 1.5 times productivity©DaikyoNishikawa Corporation All rights reserved.

●Electricity usage fee 64% reduction●CO2 reduction : 60% or more reduction
P.29

Future efforts
What to grasp as DaikyoNishikawa
原材料の採掘Raw
material mining③使用エネルギー
3. Energy use

Product
disposal
・製品の廃棄・他社から供給される電気の使用
・Electricity/ heat utilization
supplied by other companies
・他社から供給される熱の利用

Suppliers
調達先事業者等

6. Product⑥製品輸送
Transportation

Transportation
原材料輸送

DNC
DaikyoNishikawa

カーメーカー
Automaker

Purchasing
原材料購入
raw
materials
・製品の輸送1. Manufacture of①原材料等の製造
raw materials

Use of product
・製品の使用Purchasing
外注品輸送Transportation

外注品購入
outsourced

products
2. Outsourced
product②外注品製造manufacturing

4.④通勤・社用車
Commuting /company car

・燃料の燃焼・Fuelconsumption
・Industrial
process emissions
・工業プロセスの排出・通勤・営業、出張5. Disposal in factory⑤工場プロセスでの廃棄
process
・Recycle・リサイクル（社内、外部）(Internal/Outer)
・Disposal

・廃棄©DaikyoNishikawa Corporation All rights reserved.

P.30

Future efforts【Efforts to achieve carbon neutrality】
1. Planning and implementation of renewable energy equipment
introduction plan
2. Accelerate weight reduction development⇒Biomaterial development / injection foam-molding technology⇒Reduction of material usage
3. Establish system for re-using CO2 (heat) generated in the production
process
4. Accelerate energy saving activities and continuous productivity
improvement activities
5. Zero waste generated in factory processes©DaikyoNishikawa Corporation All rights reserved.

P.31

Important Information
This presentation material contains certain statements describing the future plans, strategies,
and performance of DaikyoNishikawa Corporation and its consolidated subsidiaries. Thesestatements are not based on historical or present fact, but rather assumptions and estimates
based on information currently available. These future plans, strategies, and performances are
subject to known and unknown risks, uncertainties, and other factors. DaikyoNishikawa
Corporation’s actual performance, business activities, and financial position may differ materiallyfrom the assumptions and estimates provided on account of the risks, uncertainties, and otherfactors. The information contained on this presentation should not be considered as an offer, or
solicitation, to deal in any of the investments or funds.

Contact
DaikyoNishikawa Corporation
Corporate Planning Department
Phone: +81-82-493-5610©DaikyoNishikawa Corporation All rights reserved.