Consolidated Financial Results
Ended March 31, 2023

DaikyoNishikawa Corporation
May, 2023©DaikyoNishikawa Corporation All rights reserved.

Table of Contents

1. Financial Results for Fiscal 2022

Page 2

2. Key Initiatives to Achieve the Medium-Term
Management Plan

Page 8

3. Financial Forecasts for Fiscal 2023

Page 28©DaikyoNishikawa Corporation All rights reserved.

P.1

1. Financial Results for Fiscal 2022

Page 2

2. Key Initiatives to Achieve the Medium-Term
Management Plan

Page 8

3. Financial Forecasts for Fiscal 2023

Page 28©DaikyoNishikawa Corporation All rights reserved.

P.2

Summary of Consolidated Financial Results for FY2022 (Yearon-Year)
 Net sales increased due to a recovery in customer production volume and the shift of surging raw material and energy
costs to prices, despite the impact of the global semiconductor shortage and other factors.
 Operating income increased due to the impact of increased sales, the reduction of all expenses, and the implementationof cost improvement activities, despite the timing delay in the start of two-shift production at the new U.S. plant.
(Millions of yen)

Financial results for theyear ended March 31,
2022

Financial results for theyear ended March 31,
2023

Net sales

116,669

145,744

29,075

24.9%

Operating income-2,632

3,453

6,086

-

Ordinary income

-985

2,864

3,850

-

Net income attributableto owners of parent-2,085

518

2,604

-

-29.37 yen

7.30 yen

36.67 yen-

Net income per
share©DaikyoNishikawa Corporation All rights reserved.

P.3

Changes (YonY)

Changes (%)

Net Sales Increase/Decrease Factors(Millions of yen)

• Increase in depreciation
expenses due to the start ofmass production at the new
U.S. plant• Development costs incurredin the previous fiscal year at
the new U.S. plant

6,000

5,000

-653

765

-371

4,000

-248
3,000

• Impact of increased sales due tohigher production volume

1,846

2,000

1,000

0

-1,0003,453• Increase in production andoperation efficiency• Energy conservation activities

4,746-2,632-2,000-3,000Operating income for Volume and product Cost improvement
FY2021mix©DaikyoNishikawa Corporation All rights reserved.

Launch cost

Depreciation
expenses

P.4

Exchange rate
fluctuations

Other costs

Operating income for
FY2022

Summary of Consolidated Financial Results for FY2022(Comparison with Financial Forecasts)
 Net sales exceeded the previous forecast due to the shift of surging raw material and energy costs to prices and thechange in customers’ car model mix, etc., despite the lower-than-expected production volume.
 Operating income exceeded the previous forecast as a result of the impact of increased sales, the promotion ofefficient production and operations, and the implementation of thorough cost improvement activities.
(Millions of yen)

Financial forecasts for theyear ending March 31,
2023 (announced on Nov. 14)

Financial results for theyear ended March 31,
2023

Net sales

144,000

145,744

1,744

1.2%

Operating income

2,600

3,453

853

32.8%

Ordinary income

2,400

2,864

464

19.4%

Net income attributableto owners of parent

400

518

118

29.6%

5.63 yen

7.30 yen

1.67 yen-

Net income per
share©DaikyoNishikawa Corporation All rights reserved.

P.5

Changes

Changes (%)

Sales by Region

Overseas

Domestic

 n Japan, net sales increased due to the increase in production volume and the change in the car model mix at major
customers, the increase in sales to strategic OEMs to expand sales channels, and the shift of surging raw material
and energy costs to prices.
 In Americas, net sales increased due to the start of full-scale operation at the new U.S. plant, the increase in sales ofmolds, and the impact of conversion to the Japanese currency.
(Millions of yen)

Financial results forthe year ended
March 31, 2022

Financial results forthe year ended
March 31, 2023

Changes (YoY)

Changes(%)

Japan(component ratio)

87,211(74.8)

102,957(70.6)

15,746(-4.2 Pts)

18.1%

China & Korea

5,789

4,464

-1,325-22.9%

ASEAN

9,066

12,287

3,220

35.5%

Americas14,602

26,036

11,433

78.3%

Subtotal(component ratio)

29,458(25.2)

42,787(29.4)

13,329(4.2 Pts)

45.2%

116,669

145,744

29,075

24.9%

Total
©DaikyoNishikawa Corporation All rights reserved.

P.6

Operating Income by Region
 In Japan, operating income increased due to the impact of higher sales, the reduction of all expenses, and cost
improvement activities, despite the impact of surging raw material and energy costs.
 In Americas, operating loss was recorded, despite improvements through a review of the production system andother measures to address the delay in the customer’s start of two-shift production at the new U.S. plant.

Overseas

Domestic(Millions of yen)

Financial results forthe year ended
March 31, 2022

Financial results forthe year ended
March 31, 2023

Changes (YoY)

Changes(%)

Japan(component ratio)

806
(-)

4,098
(-)

3292
(-)

408.4%

China & Korea

283

-81

-364

-

ASEAN

177

1,034

857

482.6%

Americas-2,871-2,750120-

Subtotal(component ratio)-2,409(-)-1,797
(-)

612
(-)

-

-1,603

2,301

3,905

-

Total
©DaikyoNishikawa Corporation All rights reserved.

P.7

1. Financial Results for Fiscal 2022

Page 2

2. Key Initiatives to Achieve the Medium-Term
Management Plan

Page 8

3. Financial Forecasts for Fiscal 2023

Page 28©DaikyoNishikawa Corporation All rights reserved.

P.8

Key Initiatives to Achieve the Medium-Term Management Plan
Strengthening CSR Management
Contributing to solving social issues
Managementbase strategy
Work style reform

Ensuring profitability

Investment inDigitalhuman resources innovation
Promotion of
SDGs activities
BCP

Customer strategy andlocation strategy
Expansion of OEMs

ComplianceDeepening relationships
with stakeholders

Product
strategy

Expansion of global sales

Promotion of electrification
Cockpit technology innovation

Manufacturing
strategy

Energy saving
Carbon neutrality©DaikyoNishikawa Corporation All rights reserved.

Recycling

P.9

Automation

Customer Strategy: Expansion of OEMs
Consolidated net sales by OEM(Millions of yen)
200,000
160,000

163,000

150,000

140,000

145,744
119,000

Four strategic OEMs

116,669

Daihatsu

120,000
80,000Mazda

40,0000FY2016 to
2016年度～FY20182018年度平均(average)

FY20192019年度FY20202020年度FY20212021年度FY2022
2022年度FY2023
2023年度

230

237

Sales to four strategic OEMs

(Millions of yen)(Index)
20,00015,000144
10,000

100

157

143
117

116

Sales promotion items
Battery covers
Tailgates

5,000

0FY20162016年度FY20172017年度FY20182018年度FY20192019年度FY20202020年度FY20212021年度FY2022
2022年度FY2023
2023年度* In accordance with the adoption of the “Accounting Standard for Revenue Recognition” from FY2021, net sales for FY2019 and FY2020 were converted using the rate of difference from the previous standard in the FY2020 results.

©DaikyoNishikawa Corporation All rights reserved.

P.10

Location Strategy: Expansion of Global Sales
Consolidated net sales by segment(Millions of yen)
150,000

163,000
150,000

140,000

145,744
119,000

北中米116,669

Americas

Overseas segment
China & Korea

100,000

中国
ASEAN

50,000

アセアン
Japan

0
FY2016 to
2016年度～FY20182018年度平均(average)

FY20192019年度FY20202020年度(Millions of yen)

日本

FY20212021年度FY2023

Sales in three overseas segments

60,00050,000(Index)234

185

40,00030,000

FY2022

120

133

146

140

136

Sales promotion items
Exterior parts such as
bumpers100

20,000Americas

China & Korea

10,000ASEAN

0FY20162016年度FY20172017年度FY20182018年度FY20192019年度Began supplying bumpers to Mitsubishi in Indonesia

FY20202020年度FY2022

FY20212021年度FY2023

Began supplying to Mazda and Toyota in North America* In accordance with the adoption of the “Accounting Standard for Revenue Recognition” from FY2021, net sales for FY2019 and FY2020 were converted using the rate of difference from the previous standard in the FY2020 results.

©DaikyoNishikawa Corporation All rights reserved.

P.11

Location Strategy: Completion of Hiroshima Area
Reorganization Project
Background of the construction of the Headquarters andthe Honsha Plant(1) Issue of scattered bases• The Headquarters, the R&D Office, and the Test Center were dispersed in remoteareas, resulting in speed and transportation losses, rental costs, employment
obstacles, and other issues.

Headquarters &Honsha Plant

Consolidation

Headquarters relocated in January 2020 and consolidation
completed in FY2022
Headquarters & Honsha Plant

Daiwa
Plant
大和工場

Miiri
Plant
三入試験
Kabe
Plant
可部工場

Created a workplace environment where
employees feel fulfilled in their work

Hachihonmatsu
八本松工場
Plant

• Building the Headquarters, the R&D Office, the Test Center, and the Plant
in the same location
Established a technical center for integrated verification and evaluation• Establishing a development system that can handle simultaneous
worldwide launches
Secured equipment and space for off-line development• Securing space for flexible and integrated production lines
Realized straight production from molding to painting and assembly
Ultimate lean production lines using automation and IoT• Taking care of the global environment, the barrier-free environment, thework environment, etc.
(1) Improved development efficiency through function consolidation(2) Reduced travel loss and expenses such as rent
(3) Reduced CO2 emissions at the Headquarters (-60%) and the Honsha
Plant (-30%)

Consolidation
R&D
OfficeR&D事務所

Saka
坂本社
Headquarters(2) Issue with the production preparation process• No place or equipment to examine manufacturing (development, technology,
manufacturing and procurement)• Using mass production equipment on holidays and finding difficulty inconducting sufficient verification activities(3) Space issue for future development• Lack of space for introducing new technology and renewing equipment in aplanned manner• Difficulty in pursuing ideal equipment layouts and renewing aging equipment©DaikyoNishikawa Corporation All rights reserved.

The new Headquarters and the Honsha
Plant were established and the six
plants were consolidated to four
plants.
 Former Headquarters (Saka): Leaseterminated R&D Office (Yano): Sold Honsha Plant  Hachihonmatsu Plant
and Yamato Plant: New function andreorganization

P.12

Key Initiatives to Achieve the Medium-Term Management Plan
Strengthening CSR Management
Contributing to solving social issues

Work style reform

Ensuring profitability

Investment inDigitalhuman resources innovation
Promotion of
SDGs activities
BCP

Expansion of OEMs

ComplianceDeepening relationships
with stakeholders

Product
strategy

Expansion of global sales

Promotion of electrification
Cockpit technology innovation

Manufacturing
strategy

Energy saving
Carbon neutrality©DaikyoNishikawa Corporation All rights reserved.

Recycling

P.13

Automation

Product Strategy: Module Development Initiatives
Product strategy roadmap
Strengthening the construction of “module development” and “system development” including functional
integration for a decarbonized society
Promoting product development for adecarbonized society
FY2019 to FY2023 Medium-Term
Transformation to
Management Plan
“system development”

CockpitFour product
Front end
Powertrain
strategies
Tailgate

Individual
product
development
Moduledevelopment

Systemdevelopment
Moduledevelopment

Construction of “systemdevelopment”

System development
Development of
products that benefit
our company, business
partners, and users

Model base development
Transformation
to simulationbased
development tosupport productstrategies

Development process innovation and CAE
technology

Body model©DaikyoNishikawa Corporation All rights reserved.

Vehicle model

Digitalization and DX promotion

Actual vehicle
model

P.14

New value creation

Comfort (TSV)Product Strategy: Electrification I
Beginning the development of new inverter cooling modules and components inside EV battery packs

Capacitor

Evaporator andcompressor

Battery cover
Radiator

Plastic pipe for coolant and refrigerant
Motor

InverterBattery

Speedcontroller

BusbarRapid charger

Inverter housing and cooling module

Themes under development

Charge port

Main initiatives

Fire resistance(for EV)

Evolution of battery covers
Development of components inside
battery packs

Developing SMC materials to meet fire resistance standards
Fire resistance standards: GB standards (strict standards for direct battery
combustion)

Thermal management(for EV)

Development of refrigerant-compatible
pipes

Realizing the gas barrier performance to shift to structure development

Further weight
reduction(for EV)

Development of inverter housings andcooling modules

Challenge to replace existing aluminum castings with plastic castings
Developing high temperature resistant materials and verifying the precision molding
technology
Investigating a high cooling structure©DaikyoNishikawa Corporation All rights reserved.

P.15

Product Strategy: Electrification II
Further deepening plastic cooling pipes for thermal management diversified by electrification
Mass-producing plastic
cooling pipes using the gas
injection method
Realizing low costs and weight reduction ofpipes that are capable of flexible shaping andcomplex routing

Further deepening the function and performance of plastic coolingpipes to meet the growing demand for cooling pipes due toelectrification
 Cooling pipes forelectronic devices

 Various pipes• Change to heat pumps• Motor cooling• Inverter cooling• Converter cooling Long pipes• Rear motor cooling• Rear inverter cooling• Battery temperature control

Cooling pipe forelectronic device©DaikyoNishikawa Corporation All rights reserved.

P.16

Product Strategy: Electrification III
Further deepening the busbar technology for converting electric input to driving force due to electrification
Mass-producing busbars for motor drives
Turning the changes caused by electrification into commercial
opportunities, thereby aiming for growth

Developing value-added technology to further deepen the busbar
technology, thereby meeting the growing demand for busbars due to theshift from internal combustion engines to electrification

Covering a busbar with engineering plastic to achieve both insulation and asealed structure to save space

High voltages
Busbars with secondary functions
such as lubrication and cooling forhigher voltages

For PHEV

to Motor

Integration with large
plastic products
Integrating busbar functions into
existing products, including large
plastic battery covers

For MHEV

Using harnesses for longbusbars

InverterIntegrating the functions of longbusbar and plastic

Battery©DaikyoNishikawa Corporation All rights reserved.

P.17

Product Strategy: Powertrain Sales Structure Forecast

ICE

EV

Engine cover

Cylinder headcover

Engine oil
strainer

Turbo duct

Intake manifold

Air cleaner

Under development

Under development

Octovalve forcooling unit

ATF strainer for
e-AxleCooling pipe

Plastic integrated
busbarBattey cover

157%

100%

BEV部品
BEV parts
ICE parts
ICE部品

76%
26%
2022

2023

2024

2025

2026

*Expressed as an index with FY2022 as 100©DaikyoNishikawa Corporation All rights reserved.

P.18

2027

2028

2029

2030 (FY)Manufacturing Strategy: Automation Initiatives
Example of establishing good product conditions(new paint line in the Honsha Plant)

Concept of automation (batch concept)(1) Establishing conditions
for good products(2) Introducing the latest
energy-saving equipment(Good product rate: 100%)(zero energy loss)

Technology
技術開発 development

Correlation
analysis(4) Managing quality andequipment conditions(3) Pursuing the 3Rs(Material yield: 100%)

Painting environment(use of big data)(6) Eliminating heavy-object
handling work anddifficult work

(5) Zero waste and loss
(pursuit of value-added work)

Data measurement• Painting materials• Painting conditions• Painting environment• Product evaluation

Painting machines and booths(ergonomics)

Impact factor identification

Multivariate analysis

Production process

Development of lines with good product conditions
Production data aggregation systems introduced
2017
Nishiura Plant
Model line

2018
DATA

2019

Collection Analysis

2020
Good productconditions

2021

Good productconditions

2022

Quality and preventive
maintenance of equipment

Molding
process
Implementation in
the Honsha Plant

Nishiura Plant
Model line

DATA

Continuous
improvement

Good productconditions

Mass production big
data analysis

Good productconditions

Paint process
Implementation in
the Honsha Plant

Assembly
process

Implementationin cooling pipes©DaikyoNishikawa Corporation All rights reserved.

Good productconditions

Mass production

Good productconditions

Production data monitoring

Reflecting results in the plastic cooling pipe line
P.19

Manufacturing Strategy: Automation Initiatives
Introducing innovative technologies that contribute to sustainable manufacturing, thereby achieving a 30% reduction in production manpower
Compact and general-purpose
General-purpose fully
General-purpose fully
automation equipment
automated production line
automated production line,
including transport

General-purpose screw
tightening machine

Production process to start
production in FY2025
Good product conditions: 100%
No. of direct operators: 0

General-purpose automatic
welding machine

Dedicated automationequipment

General-purpose
automation equipment

General-purpose automatedproduction line
2021
2025–

Required headcount: -30%

General-purpose fully
automated production line
2030

Dedicated assembly automation equipment

Complete automation from material input to molding, assembly, inspection,and shipping of finished products

Dedicated screw tightening machine

Dedicated welding machine©DaikyoNishikawa Corporation All rights reserved.

Fully automated cooling pipe production process(100% good product conditions, 100% yield, and 0 direct operators)
P.20

Manufacturing Strategy: Circular Economy Initiatives(Recycling)
Shifting from “fuel recycling” that emits CO2 to “material recycling” that recycles resources
Main initiatives to reduce waste loss

Activities in FY2022

Waste materials from other industries(CNF, denim, oyster shells, etc.)(1) Source control activities

Upcycling
Bioplastics

DNC

Crude oil Polymers made Resin pellet
from naphtha compounds
essential oil

Molding,
assembly, andpaint

Waste material
recycling

Chemical recycling

Reduction of defects by deepening simulation technology
Car makers

Consumers(2) Promotion of material recycling
Waste loss

Incineration andlandfill

Material recycling

Realization of parts production with 100% recycledmaterials
Increase in the amount of recycled materials mixed(3) Activities to minimize material replacement loss

Low-value products(pallets, imitation
wood, and trash bags)

Reduction in the number of standard materials
Compared to FY2020: 19% reduction
Thermal recycling
Energy recovery

Innovation to the circular economy(1) Source control activities

Activities in
FY2022

Material replacement waste
Compared to FY2020: 34% reduction
パージ廃棄率Purge
disposal rate

Materials

Realizing a
Circular
Economy(2) Promotion of material recycling(3) Activities to minimize material replacement loss

©DaikyoNishikawa Corporation All rights reserved.

Production
Recyclingtechnology

Realization
Recovery

P.21

Use

FY2020 FY2021 FY2022

Manufacturing Strategy: Carbon Neutral Initiatives I
Scope 1-2

Roadmap for CO2 emission reduction
Energy saving
activities
Energy saving
renewal1-24%Energy saving
activities
Energy saving
renewalIntroduction ofrenewable energy

CO2

2021

2013

Promoting company-wide energy saving
steps, technological innovation energy
saving activities, and productivity
improvement activities

EnergysavingrenewalPromoting long-term equipment renewal
plans (energy-efficient equipment)

2-50%
Energy saving
activities
EnergysavingrenewalCO2
In action

Energysavingactivities

CO2

Introduction ofrenewable energy

2030

2050

CN
achievement

3
Introductionof renewableenergyIntroducing solar power generation,
investigating biofuels, and procuring
renewable energy

FY2022: Created the roadmap and promoted company-wide energy saving steps to accelerate activities.

1

Step 6

Activities to promote energy saving improvement steps
Step 5
Step 4

Minimization during
Minimization during non- processing production
processing production
Step 3

Step 2
Step 1

Power off outside
production hours

Identification of leaks
and countermeasures©DaikyoNishikawa Corporation All rights reserved.

P.22

Minimization during
standby (idling) operation

Pursuit of ideal energy

Manufacturing Strategy: Carbon Neutral Initiatives II
2Reduction of energy consumption in the paint line

(1) Energy saving by automatic control of humidity in thepaint booth (completed in October 2022)(2) Energy saving through the reuse of conditioned air in thepaint booth (scheduled to be completed in October 2023)
Energy consumption (electricity and gas)
to be reduced by 8% from theconventional level

Power consumption reduced by 11%
compared to the conventional level* The temperature and humidity of the outside air are monitored by
sensors, and the cooling system is automatically operated only
when necessary.

* The conditioned air that is exhausted will be reused to reduceenergy for air conditioning.
Conventional

After improvement

Conventional

100% ofconditioned air
is exhausted.

The cooling system is
automatically operated.
* The cooling system was modified sothat it was operated automatically
only when necessary.

The cooling system was always
turned on.
* Electricity was consumed evenwhen the control of temperatureand humidity was not required.

Set temperature:26°C
Humidity: 60%

Controlled temperatureand humidity

Set temperature:26°C
Humidity: 60%

Exhaust to
outside: 100%

Plant roof

Circulation:
80%

Controlled temperatureand humidity

Exhaust to
outside: 80%

Circulation:
Circulation:
20%
80%

Air conditioner
for setting andothersAir conditioner
for setting andothersCooling system
in operation

Exhaust to
outside: 100%

Air
conditioner
for boothAir
conditioner
for booth

Operation
not required
Cooling system
in operation

20% reuse of
conditioned air

Exhaust to
outside: 100%
Exhaust to
outside: 20%

Plant roof

After improvement

OFF
Paint booth
Paint booth

Setting booth
Setting booth©DaikyoNishikawa Corporation All rights reserved.

P.23

Manufacturing Strategy: Carbon Neutral Initiatives III
3 Introduction of renewable energy equipment
DNC Group’s solar panel installation plan2022
Honsha Plant

2023
Study

2024

Installation on roofs

2025

Operation start

Headquarters

Study

Installation on slopes and parking lots

Operation start

Kanto Daikyo

StudyInstallation on roofs and vacant lots

Operation start

Hachihonmatsu Plant

Study

Installation on roofs

Daiwa Plant

Study

Kabe Plant

1. Installing solar panels on the roof of the Honsha Plant
building (scheduled to begin operation in May 2024)

2026

Study

Operation startInstallation on roofs
Installation on roofs

Operation start
Operation start

2. Installing solar panels on the slopes and parking lots on
the premises of the Headquarters building (scheduled to
begin operation in February 2025)

Installation of solar
panelsInstallation of solar
panelsEstimated CO2 emissions: -1,010 ton-CO2/year©DaikyoNishikawa Corporation All rights reserved.

Estimated CO2 emissions: -264 ton-CO2/year
P.24

Key Initiatives to Achieve the Medium-Term Management Plan
Strengthening CSR Management
Contributing to solving social issues
Managementbase strategy
Work style reform

Ensuring profitability

Investment inDigitalhuman resources innovation
Promotion of
SDGs activities
BCP

Expansion of OEMs

Compliance
Expansion of global sales
Deepening relationships
with stakeholders

Promotion of electrification
Cockpit technology innovation

Energy saving
Carbon neutrality©DaikyoNishikawa Corporation All rights reserved.

Recycling

P.25

Automation

Management Base Strategy
Steadily strengthening and promoting measures to achieve the goals of the medium-term management plan
• Promoting risk management and compliance• Promoting environmental measures, community
contributions, and SDGs
• Establishing DNC brand and strengthening information
dissemination

Strengthening
CSR
management

Businessmanagement

Managementbase strategyJobsatisfaction

Work stylereform©DaikyoNishikawa Corporation All rights reserved.

• Formulating the next medium-term managementplan• Reinforcing BCP measures• Providing various training, including rank-based
training• Enhancing the recruitment and portfolio of humanresources• Reinforcing measures for life and work balance• Strengthening digital transformation (DX)

P.26

Practicing proactive
businessmanagement, thereby
establishing amanagement basethat is resistant tochangesManagement Base Strategy
Strengthening DX in work style reform
Level

DN-DX (what DaikyoNishikawa wants to achieve with DX)
DX Step 3
Redefining businessprocesses using digitaltechnology

DX Step 2
Business analysis• PLM and MBD• Centralized managementof human resources

DX Step 1• Enhancement of network and• Centralized management ofbusiness• Analysis

security
Visualizing• IoT and MES(organizing) business • Introduction of Wrap PCs
processes• Business chat

• Risk management• RPA• Document management
systemInfrastructure development
Step 1:
Stable operation

Step 2:
Security enhancement

Step 3:Creation of teleworkenvironment

Step 4:Creation of environment forwork style reform

DX: Digital transformation
Digitization

2018©DaikyoNishikawa Corporation All rights reserved.

Digitalization

2021

2023
P.27

2025…

1. Financial Results for Fiscal 2022

Page 2

2. Key Initiatives to Achieve the Medium-Term
Management Plan

Page 8

3. Financial Forecasts for Fiscal 2023

Page 28©DaikyoNishikawa Corporation All rights reserved.

P.28

Summary of Consolidated Financial Forecasts for FY2023(Year-on-year) Net sales are expected to increase due to an increase in production volume at major customers and the start of twoshift production at the new U.S. plant Operating income is expected to increase due to the impact of increased sales and ongoing cost improvement(Millions of yen)
activities.
FY2022 Q2FY2023 Q2(results)(forecasts)

Changes (YoY)

FY2022

FY2023(results)(forecasts)

Changes (YoY)

Net sales

63,01179,00025.4%

145,744

163,000

11.8%

Operating income-1,446

2,300

-

3,540

8,200

137.4%

Ordinary income-1,179

1,700

-

2,952

7,200

151.3%Net income attributable toowners of parent-1,565

900

-

573

4,800

825.9%

Operating income
margin

-2.3%

2.9%

-

2.4%

5.0%

-

-22.04 yen

12.66 yen-

8.07 yen

67.54 yen-

Net income per share©DaikyoNishikawa Corporation All rights reserved.

P.29

Results and Forecasts for the Period of the Medium-Term
Management Plan
Net sales and operating income results and forecasts(Millions of yen)

240,000
Net sales

Operating income

190,000
Benchmark140,000

163,000
150,000

140,000

145,744
116,669

119,000
90,000The decrease in production volume due tothe new coronavirus and the shortage ofsemiconductors had a significant impact.

40,00015,683

8,995

4,456

-2,632

3,453

8,200

-10,000
Average between FY2016
and FY2018(converted)

FY2019(converted)

FY2020(converted)

FY2021(results)

Before the adoption of the “AccountingStandard for Revenue Recognition”

After the adoption of the “AccountingStandard for Revenue Recognition”

FY2022(results)

FY2023(forecasts)

Medium-Term
Management
Plan Final Year

* In accordance with the adoption of the “Accounting Standard for Revenue Recognition” from FY2021, net sales for FY2019 and FY2020 were converted using the rate of difference from theprevious standard in the FY2020 results.

©DaikyoNishikawa Corporation All rights reserved.

P.30

Comparison to the Medium-Term Management Plan Targets:
Operating Fluctuation Factors
 Net sales are expected to increase due to orders for new parts and changes in product mix, although they are
expected to decrease relative to the unit sales forecast at the time the plan was formulated.
 Operating income is expected to decrease due to the cost burden caused by the delay in the start of two-shift
production at the new U.S. plant, the lower-than-expected production volume, surging raw material and energy costs,
and increased expenses associated with the strengthening of CSR management.
(Millions of yen)
FY2023(management indexes in themedium-term management plan※)

FY2023

Changes (YoY)(forecasts)

Changes (%)

Consolidated net sales

150,000

163,000

13,0008.7%

Operating income margin

9.0% or more

5.0%

-

-

※2020年11月5日公表

営業利益変動要因
Medium-term
management plan
Operating income

Decrease in production volume
Delay in the start of two-shift
production at the new U.S. plant
Impact of surging raw
material and energy costs

Strengthening of CSR
management

Reduction of costs andfixed costs

Forecast for FY2023
Operating income

13,5008,200©DaikyoNishikawa Corporation All rights reserved.

P.31

Comparison of the Previous Year’s Financial Results with This
Year’s Forecasts (by Segment)

Segment

Financial forecasts for theyear ending March 31,2024

Key points

Japan

Increase in sales andincome• Sales：Increase in production volume at major customers• Profit：Improvement of production efficiency

China and Korea

Increase in sales anddecrease in income• Sales：Increase in production by major customers• Profit：Increase in start-up costs due to product transferfrom ASEAN

ASEAN

Decrease in sales anddecrease in income• Sales：Decrease in mold sales• Profit：Change in product mix

Americas

Increase in sales andincome• Sales：Start of two-shift production at the new U.S. plant• Profit：Increase in production volume©DaikyoNishikawa Corporation All rights reserved.

P.32

Capital Investment, Depreciation Expenses, and R&D
Expenses<<Capital investment>><<Depreciation expenses>><<R&D expenses>>

Decrease because large investments in the
Headquarters, the Honsha Plant and the new
U.S. plant peaked out

Increase in depreciation expenses due to thestart of the new U.S. plantContinuing research and development to create
products that exceed the expectations of society
and customers* Forecast for FY2023(Billions of
yen)

30

* Forecast for FY2023(Billions ofyen)• Increase in investments in the
Headquarters, the Honsha
Plant, and the new U.S. plant

1425* Forecast for FY2023(Billions ofyen)

4• Increase indepreciation expenses
for the new U.S. plant

12

3
10

20

8

15
25

6

10
16.5

5

2

17

9.5
16.3

• Return to normal level
because a round ofinvestments finished

10.7

10.5

10.8

11.8

12.3

4
8.2

7.7

FY2018 FY2019 FY2020 FY2021 FY2022 FY2023©DaikyoNishikawa Corporation All rights reserved.

3

2.96
2.6

2.8
2.4

1

2

0

0

3

0
FY2018FY2019FY2020FY2021FY2022FY2023

P.33

FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

Dividend The Company’s basic policy is to pay stable and continuous dividends, and the annual dividend per share for
FY2022 was 30 yen per share as forecast.
 The annual dividend per share for FY2023 is expected to remain at 30 yen per share.
Dividend per share( yen)

40

34

Year-end
期末

30

30

30

30

30

15

17

15

15

15

17

15

13

15

15

15

FY20182019年3月期

FY20192020年3月期

FY20202021年3月期

FY20212022年3月期

FY2022
2023年3月期

FY20232024年3月期

30

17
20

10

Interim
中間

0(forecast)

Payout ratio
FY2018FY2019FY2020

FY2021

FY2022

FY2023(forecast)

23.2%

43.3%

83.9%

-

411.2%

44.4%©DaikyoNishikawa Corporation All rights reserved.

P.34

[Important Information]
This presentation material contains certain statements describing the future plans, strategies, and performance of DaikyoNishikawa
Corporation and its consolidated subsidiaries. These statements are not based on historical or present fact, but rather assumptions andestimates 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 materially from the assumptions and estimates provided on account of the risks, uncertainties, and other factors. 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
PR & Branding Promotion Department
Phone: +81-82-493-5610©DaikyoNishikawa Corporation All rights reserved.

P.35

<Reference Data>
Key performance and financial indicators (consolidated)(Millions of yen)
2018/3

2019/32020/32021/32022/32023/3

2018/3

Net sales

171,967

184,314

182,219

150,234

116,669

145,744

Cost of sales

145,691

160,738

163,780

136,690108,934

131,955

Gross profit
Selling, general and administrative
expenses
Operating income (loss)

26,27623,575

18,43813,544

7,735

13,789

8,224

8,954

9,443

9,087

10,36818,052

14,621

8,995

4,456

Operating profit ratio

10.5%

7.9%

4.9%

Non-operating income

1,075

764

Non-operating expenses

385

550

Ordinary income (loss)

18,742

14,836Extraordinary income

14

Extraordinary losses

238

Income before income taxes
Income taxes
Net income/(loss) attributable to noncontrolling interests
Net-income/(loss) attributable toowners of the parent
Capital investment
Depreciation & amortization
R&D cost
Sales growth rate
Return on equity (ROE)

77,13780,257

69,31673,672

37,571

32,52939,84228,45528,07033,25835,99533,056

31,76029,13833,916

10,335

7,102

10,119

9,564

7,399

7,592

8,136

-2,632

3,453

Other

1,450

1,867

1,987

1,255

4,130

3,548

3.0%

-2.3%

2.4%

54,74060,801

73,34779,037

86,84589,226

1,121

1,273

2,191

807

Property, plant and equipment

48,90355,18968,346

73,16780,432

81,036

616

342

544

1,396

Intangible assets

1,163

976

767

741

799

887

9,500

5,386

-985

2,864

Investments and other assets

4,673

4,634

4,233

5,128

5,613

7,302

332

318

2,264

1,277

19

Total assets:

139,235

146,356

150,484

159,295

156,162

162,899

279

2,140

4,097

1,201

368

Current liabilities:

60,62147,05747,00745,55739,06745,456

18,51814,889

7,678

3,553

-909

2,515

Trade notes and accounts payable

35,621

26,44825,57924,82322,90424,999

5,346

3,838

2,455

1,595

1,274

1,975

2,911

2,509

1,757

1,694

1,442

1,470

706

648

315

-578

-98

21

2,803

2,941

2,912

2,272

4,882

5,562

12,464

10,402

4,907

2,536

-2,085

518

Short-term loans payable
Long-term loans payable due
within one year
Lease obligations

3,693

3,298

3,344

2,807

2,755

2,729

Other

15,591

11,85913,412

13,958

7,083

10,693

13,14916,48925,012

17,011

16,313

8,278

9,078

9,561

10,716

10,51010,798

11,895

3,052
10.5%
20.4%

3,003
7.2%
14.7%

2,968
-1.1%
6.5%

2,603
-17.6%
3.3%

3,049-22.3%
-2.8%

6.4%

3.5%

-0.6%

1.8%

35.75

-29.37

7.30

19.3%
3.9%

23.2%
3.4%

30.00
43.3%
2.8%

30.00
83.9%
2.8%

30.00
2.8%

30.00
411.2%
2.8%

Dividend yield (%)

1.9%

3.3%

6.1%

3.9%

5.6%

4.7%

Price book-value ratio (PBR)

1.83

0.97

0.45

0.72

0.52

0.61

9.91
5,072

6.92
5,265

©DaikyoNishikawa Corporation All rights reserved.

7.13
5,432

21.65
5,414

5,482

8,894

22,09723,08933,84840,17639,020

Bonds

2,069

15,54917,65829,241

34,12832,191

Lease obligations

2,905

2,790

2,089

1,431

2,899

2,930

Other

3,919

3,757

3,341

3,175

3,147

3,898

Total liabilities:

69,515

69,15570,096

79,40579,24384,477

Total net assets:

69,71977,20080,38779,88976,91878,422

Interest-bearing debt

14,38327,08927,76237,447

46,10844,885

Net interest-bearing debt

-28,300-10,482-4,766-2,394

17,652

16,814

Capital adequacy ratio

48.4%

50.8%

51.3%

48.5%

47.5%

46.4%

Operating cash flow

24,742

3,219

19,584

16,7883,705

14,048Investment cash flow

-13,547-19,539-24,370-17,567-20,107-8,991

Financial cash flow

-6,443

10,286-2,012

8,565

3,579

-7,618

FCF

11,195-16,320-4,786-779-16,402

5,056

0.7%

69.27

34.00

Non-current liabilities:

24.9%

10.4%

34.00

Non-current assets:

2,473

146.82

Number of Employees

2023/385,55414.4%

Price earnings ratio (PER)

2022/3

42,684175.94

Dividend on equity ratio (DOE) (%)

2021/384,495

Earnings per share (EPS) (yen)Dividend payout ratio (%)

2020/3

Cash and deposits
Trade notes and accounts
receivable
Inventories

Return on assets (ROA)

Dividend per share (yen)Current assets

2019/3

88.36
5,461

P.36

Consolidated Net Sales: Change Factors(Millions of yen)

160,000

323

1,918

4,897

140,000• Impact ofconversion to theJapanese currency

21,934
120,000• Recovery of production volume at major
customers• Full-scale operation at the new U.S.
plant

100,000

80,00060,000145,744

116,669

40,00020,0000Consolidated sales for
FY2021©DaikyoNishikawa Corporation All rights reserved.

Product sales

Tool sales

Other sales

P.37

Exchange rate fluctuations

Consolidated sales for
FY2022

Product Information – Automotive Parts
Currently focusing on expanding sales of plastic back doors in addition to interior and exterior plastic products, including instrument panels and bumpers
Pioneer in the industry in replacing metal oil strainers with plastic oil strainers
Promoting sales expansion of battery covers as a new strategic product in anticipation of EVs in the future
Main products
Instrumental panels

Bumpers

Sales by product
Sales: 145.7 billion yen (FY2022)

Mazda, Daihatsu, andHonda

Mazda, Toyota, Daihatsu, and Mitsubishi

Other
Other interior
parts

Priority products

Instrumental panels

Strategic products for EVs

Strategic products for new customers

Powertrain parts

Back doors and tailgates

Battery covers

Oil strainers

No.1 sharein the plastic oil
strainer market

Other exteriorparts

Tailgates

Daihatsu and Honda©DaikyoNishikawa Corporation All rights reserved.

Mazda, Daihatsu, Toyota, Honda,
Nissan, Subaru, Suzuki, and Mitsubishi

Mazda and Toyota

P.38

Bumpers

Plastic Back Door Growth for Daihatsu
Focusing on expanding sales to other automobile manufacturers for further growth(Thousand units)

Approx. 690

700
Approx. 620 Approx. 620

Approx. 600

600

Approx. 520 Approx. 510

Approx. 520

500

Expansion to new cars

400

Approx. 360

Approx. 310

300

Expansion to B-segment
cars

200
Decrease in the number ofunits due to the impact of
the new coronavirus

Approx. 110

100
0Mass production startfor Daihatsu

FY2013

FY2014©DaikyoNishikawa Corporation All rights reserved.

FY2015FY2016FY2017P.39

FY2018FY2019FY2020

FY2021

FY2022

Changes in Management Indexes
Return on equity (ROE)

Operating income margin
25.0%

15.0%

17.9%

24.5%

9.2%

10.7%

18.7%

20.4%

14.7%
9.2%

10.5%

7.9%

6.5%

5.0%

4.9%

3.3%
3.0%

2.4%
-2.3%
-2.8%

-5.0%
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

0.7%
FY2022

Net sales(Billions of yen)

200

184.3
180

171.9
160.7

160
140

182.2

155.6

182.2

145.7

134.3
116.6

120
100
80
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022Adoption of the AccountingStandard for Revenue Recognition©DaikyoNishikawa Corporation All rights reserved.

P.40

Sales Ratio by Customer
Change in composition ratio due to diversification of customers
Mazda series(Billions of yen)

Daihatsu series

Other

200
180
160

13%
14%

140

13%

120

13%

14%

14%

9%

15%
100

80

12%

10%
76%

60
40

75%

74%

75%

77%

78%

77%
77%

76%
74%

20
FY2013

FY2014©DaikyoNishikawa Corporation All rights reserved.

FY2015FY2016FY2017P.41

FY2018FY2019FY2020

FY2021

FY2022