Financial Results for the Second
Quarter of the Fiscal Year Ended
March 31,2023

DaikyoNishikawa Corporation
November, 2022
©DaikyoNishikawa Corporation All rights reserved.

Table of Contents

1. Financial Results

Page 2

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

Page 8

3. Financial Forecast for Fiscal 2022

Page 34©DaikyoNishikawa Corporation All rights reserved.

P.1

1. Financial Results©DaikyoNishikawa Corporation All rights reserved.

P.2

Consolidated Profit and Loss Statement Net sales increased mainly due to recovery in production volume of major customers.
 Operating loss due to up-front preparation costs for the full operation at the new U.S. plant.
(Millions of yen)

Financial
Financial
Results Ended Results Ended
Sept.30, 2021 Sept.30, 2022

Changes(Y on Y)

Changes (%)

【Reference】
Announced on
Aug. 9Net Sales

54,64463,011

8,367

15.3%

63,000Operating
Income-1,443-1,446-3－-1,400Ordinary Income-1,147-1,179-31－-1,400Net Income
Attributable to
Owners of Parent-1,307-1,565-258－-1,700Net Income
per Share-18.41yen-22.04yen－－

23.93yen©DaikyoNishikawa Corporation All rights reserved.

P.3

Net sales increase or decrease factor(Millions of yen)
70,00021

969
60,000

1,796

5,581
Consolidated
currency conversion

50,000A recovery of major
customers’ production

40,00030,00063,01154,64420,00010,0000
2022年3月期
売上高

製品売上©DaikyoNishikawa Corporation All rights reserved.

要具売上

その他売上

P.4

為替影響

2023年3月期
売上高

Operating income increase or decrease factor(Millions of yen)0

Increase in depreciation due to thestart of mass production at the new
U.S. plant-500-1,443-1,000373

Rising raw material andenergy prices-1,446

-574
-112
-112

-1,500-669

867-2,000
Productivity improvement,
energy saving activities, etc.

-2,5002022年3月期
営業利益

台数・製品構成

コスト改善©DaikyoNishikawa Corporation All rights reserved.

ローンチ費用

P.5

減価償却費

為替影響

その他費用

2023年3月期
営業利益

Sales by Region
 In japan segment, sales increased due to factors such as a recovery of productionof major customers.
 In Americas segment, sales increased due to the start of mass production at the(Millions of yen)
new U.S. plant.

Domestic

Overseas

Financial Results
Ended
Sept. 30, 2021

Financial Results
Ended
Sept. 30, 2022

(component ratio)

39,818(72.9)

44,603（70.8）

4,784（-2.1Pts）

12.0%

China/Korea

2,849

2,252

-596

-21.0%

ASEAN

4,818

5,212

393

8.2%

Americas

7,157

10,943

3,786

52.9%

Sub total(component ratio)

14,825(27.1)

18,408（29.2）

3,582（2.1Pts）

24.2%

Total

54,64463,011

8,367

15.3%

Japan

©DaikyoNishikawa Corporation All rights reserved.

P.6

Changes(Y on Y)

Changes(%)

Operating Income by Region
 In Japan segment, operating loss due to production loss by responding to
production fluctuations and the impact of rising costs of raw material and energy.
 In Americas segment, due to up-front preparation costs for the full-scale operation
at the new U.S. plant.
(Millions of yen)Domestic

Overseas

Financial Results
Ended
Sept. 30, 2021

Financial Results
Ended
Sept. 30, 2022

(component ratio)

-950
（－）

-862
（－）

87
（－）

－

China/Korea

132

14

-117

-88.8%

ASEAN

185

495

310

167.5%

Americas-677-2,078-1,401－

Sub total

-359
（－）

-1,568（－）-1,208（－）－-1,309-2,430-1,121－

Japan(component ratio)

Total©DaikyoNishikawa Corporation All rights reserved.

P.7

Changes(Y on Y)

Changes(%)

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

©DaikyoNishikawa Corporation All rights reserved.

P.8

Priority efforts forward to achieve
the medium-term business plan
Strengthening CSR management

Medium-term business plan
financial goals

 Contribute to solving social issues andsecuring profitability
Aim for a resilient management structure by quickly
responding to changes in the external environment
Started on supplying to Toyota andMazda in the United State
Started on supplying tailgate for Honda
Started on supplying large battery
covers for Toyota
Started on supplying cooling pipes for
Mazda

FY2021
FY2020
Expansion of
product
Started on supplying
bumpers for
Mitsubishi Motors

Sales: 150 billion yen
Operating Income Margin: 9%
ROE: 10%
Explore new areasof application of
proprietary
technologies

FY2022・Promote brand building and sharing
activities
・Issue the DNC report 2022

Recovery of profitability including full-scale
operation of new plant in the US

Expand sales ofbackdoors for
Daihatsu

Declared DaikyoNishikawa SDGs Statement
Started on carbon neutral activities

FY2019Correspondence to “new normal” and strengthening BCP
Investment in Headquarters / Head plant and the new plant in the US

Our movement
Contributing to a sustainable society by strengthening CSR management©DaikyoNishikawa Corporation All rights reserved.

FY2023P.9

Priority efforts forward to achieve
the medium-term business plan
Strengthening CSR management
Contribution tosolving social issues

Securing profitability

Managementbase strategy
Deepening relationships
with stakeholders

Human capital
BCP
investment

ComplianceIndustry-AcademiaGovernment Collaboration

Work style reform

Product Strategy
Electrification
Cockpit technology
innovation

Customer Strategy,
Location Strategy
Expansion of global
sales
OEM customer
expansion

Manufacturing
Strategy

Energy saving
Carbon neutral©DaikyoNishikawa Corporation All rights reserved.

Recycling

P.10

Autonomation

Customer Strategy(Millions of yen)

Expand OEM Customers

Consolidated net sales by OEMs

150,000

100,000

Sales Expansion Items
・TOYOTA：Bumper, Battery cover
・HONDA：Tailgate
・MITSUBISHI：Rear spoiler
・SUBARU：Fuel rid, Oil strainer

50,0000
FY20212022年3月期

FY2022
2023年3月期

FY20212022年3月期

Second Quarter(Millions of yen)

20,00015,00010,000

FY2022
2023年3月期

Fiscal Year

Consolidated net sales of Strategic OEMs
24.8%
increase

5,000

0FY20212022年3月期

FY2022
2023年3月期

2022年3月期
FY2021

Fiscal Year

Second Quarter©DaikyoNishikawa Corporation All rights reserved.

FY2022
2023年3月期

P.11

Customer Strategy
Sales expansion of tailgates for Honda
Sales for Honda CIVIC has been steadily expanding High rigidity is ensured by theuse of thermoplastic resin
reinforced with glass fiber Reduction in the number ofparts and improvement indesign by integrating parts
 Production volume more thantripled from the same period
last year

Image courtesy of Honda Motor Co.

Starting in the first half of 2022, the “CIVIC TYPE R” released inAugust will also be equipped with a plastic tailgate as well as FRP
resin spoiler.
©DaikyoNishikawa Corporation All rights reserved.

P.12

Location Strategy Global sales expansion
Consolidated Sales by Location Segment(Millions of yen)Japan

China/Korea

ASEAN

Americas150,000
100,000

Sales Expansion Items
・MAZDA：Instrument panel, Bumper
・TOYOTA：Bumper

50,0000
FY2021

FY2022

FY2021

Second Quarter

FY2022

Fiscal Year

Overseas Segment Sales(Millions of yen)

China/Korea

ASEAN

Americas50,00040,00030,00053.8% increase
In America Segment
New U.S. plant (DNUS) will
be a growth driver

20,00010,0000
FY2021

FY2022

FY2021

Second Quarter©DaikyoNishikawa Corporation All rights reserved.

FY2022

Fiscal Year
P.13

Location Strategy Steady start-up in DNUS
By supplying each process with what it needs, when it needs it, and in thequantities it needs Realizing a factory with thoroughly reduced inventories(just-in-time) , and production and supplying steadily

Material
Input

Molding
Process

Painting
Process

Assembly
Process

VehicleAssemblybycustomer

Lead time from material input to assembly• Assembly is completed on the vehicle 163 minutes as
planed after material is fed into the molding machine.
©DaikyoNishikawa Corporation All rights reserved.

P.14

Location Strategy Steady start-up in DNUS
By leveraging the technology and manufacturing expertise cultivatedover the years, able to optimize the DNUS production process toachieve high efficiency in production

Molding

Painting

Assembly

Space

Time

Space

Time

retention（Bumper）（Instrument panel）

Our Average
Achievements

648㎡

3Hours1944㎡

4Hours74.4min.

44.6min.

DNUS

250㎡

2.5Hours

1000㎡

2Hours27.6min.

16.6min.

Effect-398㎡-0.5Hours-944㎡-2Hours-46.8min.

-25min.

©DaikyoNishikawa Corporation All rights reserved.

P.15

Retention

Location Strategy Aim of DNUS
Target of DNUS（the new U.S. plant）
Plant that supply each process with what it needs, when it needs it, and in the quantities it needs.
DaikyoNishikawa
Production
System（DNPS）

Target of DNUS
（DNC Standards）

DNC
standard
tools

Fixed Element
One Point※DNPS・・・Activities that lead to better manufacturing by efficiently
combining people, equipment, and things.

【Roadmap to Self-Reliance】
Penetration of DNC standards among local staffs➡Education on DNC standards by advisors andrearing local trainers

2022

2021

2020

Wish tobe

Aim tobe

Establish education by making self-decisionby local staff

Improve educational methods, content, tools, and evolved
standards

Identification of issues in educational methods, and analysis of gaps
between what they aim to be

Training and education of local workers based on DNC standards

Education, penetration and retention of local professionals
based on DNC standards©DaikyoNishikawa Corporation All rights reserved.

P.16

Product Strategy

Module Development

Product Strategy Roadmap
Strengthening the "module development" and "system development" including functional
integration for a decarbonized society
Product Development for Decarbonized Society

Mid-term Business Plan FY2019~FY2023

Transform “System Development"

Cockpit

Front
End

44Product
Product
Strategies
Strategies

Power
Train

Tailgate

Establish “System Development"

SystemDevelopment
ModuleDevelopment

Independent
Development
ModuleDevelopment

SystemDevelopment
Product
development for
Customers, Usersand our benefit

Model Based Development
Development Process Innovation

DX: Digital Transformation

Creating new value

Transformation
to desk-top
verification
development
Frame Model

Vehicles Model©DaikyoNishikawa Corporation All rights reserved.

Real Car Model

P.17

Thermal Sensation Vote

Product Strategy

Module Development

Module Development
Select development items from a "functional" perspectiveat the vehicle level

CockpitScope (target products) expansion study and most recent technology development
Planning-EV Impact Assessment-Customer value analysis-System scenario development

Front EndEngineering-Light Transparent Surface Technology-Strengthening the competitiveness of
surface-wrapped parts-Establishment of NVH structure

Focus on “Air IN/OUT management + ADAS”

Started product planning for EVs around the front end
Planning-Functional extraction as an area
-Planning of items for EVs(EV/ICE exclusive use)

Power Train

Engineering-Grille shutter development-Development of cooling air conduit structure-Millimeter wave radar development

Development of powertrain products for EVs in accordance withaccelerated EV penetration

Planning of technology/product development for EVs
Planning

Tailgate-Battery peripheral product planning
as a new revenue pillar-Reorganization of technology
portfolio for EVs

Engineering-Mass production of bus bars for EVs-Product improvement of battery covers-Evolution of gas injection

Optimization of mass production process through zero-based review

Apply innovation results to resin tailgate production process
Planning-Smooth design-Shapes not possible with sheet metal-Module delivery©DaikyoNishikawa Corporation All rights reserved.

Engineering

P.18-Sheet metal reinforce adhesive structure-Automatic gluing and simple drying-Automatic inspection processProduct Strategy
Light Transparent Surface Technology
Development of Next Generation Light Transmission Slush Technology
Pursuing new value in instrument panels by fusing resin and electronic components
Image transparency, fabric-like surface skin

Exhibit Models for “Automotive Engineering Exposition 2022”

Functional Textures

Interior Concept

Image Transmission Pad

2030©DaikyoNishikawa Corporation All rights reserved.

P.19

Product Strategy

Electrification in Powertrain

Started mass production of bus bars in addition to battery covers and cooling pipes

Evaporators/Compressors

Resin pipe forrefrigerant /cooling water

Radiator

Condenser

Battery covers
Motor
InverterBattery

Transmission

Quick charge

Bus bars

Theme under development

Electric
power ports

Main Initiatives

Fire resistanceBattery cover evolution

Clear fire resistance through development of SMC materials
Fire resistance standard: GB standard（strict standard)

Thermalmanagement

Refrigerant-compatible pipe
development

Gas barrier performance cleared→Transition to structural development

Weight reduction

Inverter housing development

Challenge to convert existing aluminum casting to resin
Development of high temperature resistant materials +Verification of precision molding technology©DaikyoNishikawa Corporation All rights reserved.

P.20

Product Strategy

Mass production of bus bars

Bus Bars for Electric Vehicles
Plate-shaped metal (bus bar) arrangement for 400V voltage, high current, and space saving
Metal plates must be coated with resin for insulation
Wire harness

Conventional Automotive
Power supply from 12V battery via wire harness

Market Trends and Responses
The market for bus bars is expected to grow as vehicles are electrified.
In order to increase the voltage to 800V to shorten the charging time, we will promote thedevelopment of bus bars with higher heat resistance and insulation properties.

Mass production parts： Bus bar

Example: Inverter
Bus barAluminum

Insert Molding
with high performanceresin
Aluminum©DaikyoNishikawa Corporation All rights reserved.

P.21

Manufacturing Strategy

Carbon Neutral

Roadmap for CO2 Reduction
Scope１,２
CO2排出量削減のロードマップ（Scorp１,２）
Energy-saving
省エネ活動

Currently active
▲24％
-24%

Up-date
省エネ更新

▲50％

Energy-saving
省エネ活動

-50%

Up-date
省エネ更新
再エネ導入
Alternative energy

CO2

CN Accomplishment
CN達成

Energy-saving
Energy-saving
省エネ活動
CO2

省エネ更新
Up-dateCO2

Up-dateAlternative
energy
再エネ導入

2013

2013年

2021

2021年

2030年

2030

2050年

2050

Energy-saving
省エネ活動

Company-wide energy conservation step deployment activities, technological innovation energy
全社省エネステップ展開活動・技術革新省エネ活動・生産性向上活動
conservation activities, productivity improvement activities

省エネ更新
Up-datePromotelong-term facility renewal plans (energy-saving facilities)
長期設備更新計画（省エネ設備）の推進。

Alternative
energy
再エネ導入

Introductionof solar power generation, biofuel study, energy-saving procurement
太陽光発電の導入・バイオ燃料検討・再エネ調達

Created roadmap. Company-wide rollout of energy conservation step deployment

FY2022： activities, and accelerated activities.

◇Stepwise Activities for Energy Conservation Improvements
・Step1⇒Blocking off after production hours

・Step4⇒Minimize during production processing

・Step2⇒Identify leaks and countermeasures ・Step5⇒Minimize during standby operation
・Step3⇒Minimize non-processing production ・Step6⇒Pursuit of ideal energy©DaikyoNishikawa Corporation All rights reserved.

P.22

Manufacturing Strategy
Energy Conservation Activities
1. Change of valve structure

・Step5⇒Minimize during standby operation
Non-leakHydraulic Valves

Stops motor by preventing
hydraulic pressure leakage
during mold clamping.

Power consumption

Hydraulic motor
downsizing &intermittent
operation

27% reduction
compared to conventional

Hydraulics⇒Electrification
Hydraulic motors
Continuous operation

・Step6⇒Pursuit of ideal energy

2. Optimal air control for painting booths

Temp./Hum.
Set temperature
Optimal air conditioning
Level of humidity(dehumidification) automaticallyfollows the outside air humidity.

Power consumption

11% reduction
compared to conventional©DaikyoNishikawa Corporation All rights reserved.

Temp./Hum.

No need to operate
Cooling system
operation

Cooling system
operation

Cooling system always on

Automatic operation of cooling system*Power consumed even whentemperature and humidity control
was not required.

*Automatic operation only whentemperature/humidity control is required

P.23

Manufacturing Strategy
Scope３

Carbon Neutral

Activity Policy①樹脂原料
Resin raw materials

Research and demonstration of upcycling and chemical cycling
アップﾟサイクル・ケミカルサイクルの研究及び実現検証

開発本部
R＆D本部
技術本部

Development Div.

①発砲材料
Foaming material

Research andDevelopment Div.
Engineering Div.

①塗料
Painting material
Outsourced resin

Design Innovation: MBD process establishment provides MIN structure
設計革新：MBDプロセス構築による、MIN構造の提供
Technical innovation: Reduce raw material usage through foam molding
技術革新：発砲成形技術確立による使用料低減等
Production Technology Innovation: Improved
Coating Efficiency and Yield
生産技術革新：塗着効率向上50％⇒75％
他歩留まり革新活動

製造本部
技術本部

②外注樹脂原料
raw materials

Production Div.
Engineering Div.

Manufacturing waste⑤製造工程廃棄原料
materials

Development Div.
Research andDevelopment Div.

Purchased parts⑦購入部品

Purchasing Div.

Molds/Tools⑧金型・用具Engineering Div.

Commute/Business trip
④通勤・出張Corporate
Management Div.

開発・R＆D

Reduction of company-wide
waste loss toward zero target
全社廃棄ロス削減活動
目標０に向けてﾘｻｲｸﾙｾﾝﾀｰ運用→Recycle Center Operation

購買本部
技術本部
経営管理

-Customer
Survey
客先動向調査-Prepare data collection
データ収集検討準備-Grasp current status
現状把握・改善案検討/improvement

改善計画立案・改善実施⇒PDCA
Improvement planning and implementation→PDCA cycle【Initiatives for the fiscal year 2022】-Launched research and development to realize ideal horizontal recycling（Industry-University-Government Collaboration）-Accelerate usage reduction themes-Started activities to create scenarios©DaikyoNishikawa Corporation All rights reserved.

P.24③ケミカルリ

Manufacturing Strategy
Circular Economy Initiatives
From “Recycling as Fuel” that emits CO2
to “Recycling as Material” that recycles resources
Waste materials from other industries（CNF, denim, oyster shell etc.）

4.Upcycle
DaikyoNishikawa

5.Bioplastic

Crude
oil

Naphtha Refining
Material Polymers

Resin pellets
Compound

Automobile
manufacturers

Consumer

Molding, assembly,
painting

Loss at the end of a product line

1.Recycling of waste materials
2.Material recycling
3.Chemical recycling【Activities】
1,4,5:Promote through company-wide activities
2,3:Strengthening efforts in industry-academia-

Incinerationand landfill

government collaboration

Thermal recycling
Low-value products（Pallets, false wood, garbage bags）©DaikyoNishikawa Corporation All rights reserved.

P.25

Energy retrieval

Management Base Strategy
Initiatives to Deepen Relationships with Stakeholders
Strengthened information dissemination by publishing the DNC Report 2022,
positioned as a tool for dialogue to help understand the Company's growthstory and corporate value

DNC Report 2022
-Report that includes non-financial
information as well as financial information.
-Communicate corporate activities toward
the realization of a sustainable society-Positioned as an important tool forcommunication as an “open company”©DaikyoNishikawa Corporation All rights reserved.

P.26

Management Base Strategy

Sustainability Policy

Sustainability Policy
The DaikyoNishikawa group is committed to realizing a sustainable society basedon our corporate philosophy, with every employee playing a leading role.
-Each and every employee is encouraged to see the realization of a sustainable society as own
personal matter, to integrate it with his or her work, and to work to solve problems.
-We will contribute to solving social issues by using our manufacturing capabilities to create andinnovate.
Valuing
Society

DaikyoNishikawa

SDGs Declaration
We support the SDGs and contribute to the realizationof a sustainable society through our business activities.

Valuing
PeopleTechnologicalInnovation andInnovative
Manufacturing©DaikyoNishikawa Corporation All rights reserved.

P.27

Valuing
the EarthEnsuring
corporateethicsManagement Base Strategy
Sustainability Promotion Structure
Cross-functional team activities that transcend the boundaries
to ensure that no one is left behind
Creating a chain reaction of activities by dividing the team into teams that can take advantage ofthe strengths of each headquarters, and clarifying the lead role in activities to link them to actions
with a sense of role, thereby building a system in which all members can participate.

Team
RED

Marketingand SalesDiv.

Quality Div.
Corporate
Management
Div.

Lead with primary responsibility:

Full participation

People & Society

Full participation

Production
Div.

Team
BLUE

Engineering

Div.

Full participation

Lead with primary responsibility:

Environment &Manufacturing

Development
Div.

R＆D Div.

Team
YELLOW

Purchasing
Div.

Full participation

Full participation

Lead with primary
responsibility:

Business Ethics
Partnerships

Corporate
Planning Div.

©DaikyoNishikawa Corporation All rights reserved.

Full participation

P.28

Management Base Strategy

Compliance

Promote compliance awareness and build a transparent system throughout the GroupFY2022

FY2021

FY2020FY2019

1. Spreading Compliance Awareness⇒Compliance Promotion Month
2. Building a transparent mechanism⇒Compliance with Whistleblower Protection Law⇒Started operation of the Global Whistleblower Hotline
3. Sharing of issues in response to compliancesurvey results

1. Spreading Compliance Awareness2. Building a transparent mechanism
3. Sharing of issues in response to monitoring results

1. Response to Revision of Harassment Law
2. Raising the level of compliance monitoring
3. Penetration of compliance education
4. Training for Group Compliance Officers

1. Strengthening Compliance Awareness and Mechanisms
2. Early detection of issues through monitoring©DaikyoNishikawa Corporation All rights reserved.

P.29

Management Base Strategy

Compliance

Raising the Level of “Compliance Promotion Month” in FY2022
To raise awareness of compliance and promote its penetration, DaikyoNishikawa hold"Compliance Promotion Month" every October for the entire Group.
Results of increased compliance awareness：
Number of compliance mottoes solicited in 2022：2,028（increased by 351 vs. last year）

Four Initiatives
1. Top message delivery
Top message on compliance delivered to all employees

2. Posting of compliance posters
Reinforce awareness of the Compliance Consultation Desk throughposters

3. Compliance motto call for entries
Collecting compliance slogans from throughout the company,
presenting awards for excellence, and disseminating them throughout
the company in the monthly compliance newsletter

４. Development of compliance case studies

Newly introduced

Compiles current topics and various case studies and explanations that
occur in the workplace and disseminates them throughout the company©DaikyoNishikawa Corporation All rights reserved.

P.30

Management Base Strategy
Business Continuity Plan
Supply Chain Management
ＳＴＥＰ

FY2021：Action completed

ＳＴＥＰ

FY2022：Taking action now

ＳＴＥＰ

FY2023：Action plan1

Handling of high-risk
items

2

Handling of mediumrisk items

3

Handling of low-risk
items

Reduce high-risk to below
medium-risk

Addressing low-risk andmitigating risk globally

Responding to medium-risk andstarting action at overseas bases

Main Initiatives

Main Initiatives

Main Initiatives-Develop risk assessment criteria-Investigate and secure alternative production
sites-Build inventory that cannot be produced
alternatively-Review risk assessment criteria-Secure alternative production sites-Build inventory of overseas procured items-Checking and registering alternative materials-Risk assessment of overseas bases andmitigation of high-risk items-Review risk assessment criteria-Reduce medium/lower risks at overseas bases-Global risk mitigation with overseas bases-Initial response/recovery measures and systemdevelopment after a disaster-Risk diversification and mitigation of new products

Implement risk avoidance measures for each procurement item at all sites
and achieved zero sharing ratio of high-risk items
Achieved Zero

Risk-sharing ratio
高リスクHigh-risk

0
2023年3月期
FY2022Medium-risk
中リスク

14.2

2022年3月期
FY2021

85.8
24.6

1.1
0%

Low-risk
低リスク

10%

74.3
20%

30%

©DaikyoNishikawa Corporation All rights reserved.

40%

50%

P.31

60%

70%

80%

90%

100%

Management Base Strategy
Investment in human resources■Obtain Ph.D. while working-Strengthening Academic Perspectives-Increased awareness of principle clarification-Improved communication with professors and students-Academic paper writing stimulates interaction-Use of university libraries (electronic libraries)-Improved accessibility and quantity of papers and literature accessible■Dispatch lecturers to university courses-Dispatch lecturers to courses (regular courses) in cooperation
with universities, testing and research institutes, etc.
-Course Concept：Knowing the community deeply and contribute-Opportunities for the community and students to learn about
corporate activities-Corporate philosophy～R & D～Product design～Actual results©DaikyoNishikawa Corporation All rights reserved.

P.32

Management Base Strategy

Work-Style Reform

Initiatives to Reform Work Styles
Promote to realize a workplace where employees continue to workwith peace of mind while raising children-Provide individual explanations to employees who have requested
leave and confirm their intention to take childcare leave.
-Explanation of the system and publication of the consultation service
in the company newsletter

Utilization of childcare support systems
MeasureFY2019FY2020

FY2021

FY2022*Childcare leave

4 employees（Male: 0）

14 employees（Male: 2）

17 employees（Male: 6）

14 employees（Male: 5）

Shortened working
hours for childcare

42 employees（Male: 2）

43 employees（Male: 3）

49 employees（Male: 4）

41 employees（Male: 3）*as of September 30, 2022

©DaikyoNishikawa Corporation All rights reserved.

P.33

3. Financial Forecast for Fiscal 2022

©DaikyoNishikawa Corporation All rights reserved.

P.34

Financial Forecast for Fiscal 2022
 Net sales are expected to exceed the previously announced forecast, partly due to the impact of thetranslation into Japanese currency.
 Operating income is expected to be lower than previously announced due to lower production volume
at the U.S. new plant and higher raw material and energy prices, etc.
(Millions of yen)

FY2022
Forecast

FY2022
Forecast

Changes

Changes(%)

【Reference】

FY2021(as of Aug 9th, 2022)(amended November
14th, 2022)

Net Sales

143,000

144,000

1,000

0.7%

116,669

Operating Income

3,900

2,600

-1,300-33.3%-2,632

Ordinary Income

3,500

2,400

-1,100-31.4%-985

Profit Attributable to
Owners of Parent

1,500

400

-1,100-73.3%-2,085

Operating profit
margin

2.7%

1.8%

－

－

-2.3%

Net Income per
Share

21.11yen

5.63yen－－-29.37yen©DaikyoNishikawa Corporation All rights reserved.

P.35（Result）

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

Decrease due to peak out of large
investments on head office/headquarter plant and U.S. plant

Increase in depreciation expenses
due to start-up of new U.S. plantContinued research and development
to create products that exceed the
expectations of society and customers※FY2022: Plan

※FY2022: Plan

35

（Billions
14 of yen）

（Billions of yen）

30

Increased investment related toheadquarters/headquarters plantand new U.S. plant（Billions of yen）
Increase in depreciation
for new U.S. plant

12

25.0

25

10.7 10.5

10
9.0

11.9

16.4

15

4

10.7

9.5

3

20
17.0

※FY2022: Plan

5

8

3.0

3.0

3.0

2.96
2.6

2.7

16.3
5.6

6

13.1

2

10.6

10
5

1.2

4

Convergence of investments
returns to normal levels

1
2.7

0

©DaikyoNishikawa Corporation All rights reserved.

2
0

0

P.36

Dividend The Company's basic policy is to pay stable and continuous dividends, andthe interim dividend is 15 yen per share as forecasted.
 Annual dividend forecast for the fiscal 2022 is maintained at 30 yen per share.
Dividends per share
40
35

34

34

18

17

30

30
25
20

30

30

30

15

17

15

（Plan）

15（Plan）

15
10

16

17

15

13

15

15

FY2017FY2018FY2019FY2020

FY2021

FY202250(Yen）

End of period

Payout Ratio
FY2017FY2018FY2019FY2020

FY2021

FY2022

19.3%

23.2%

43.3%

83.9%

－

532.9%©DaikyoNishikawa Corporation All rights reserved.

P.37（Plan）

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
PR & Branding Promotion Department
Phone: +81-82-493-5610©DaikyoNishikawa Corporation All rights reserved.

＜Reference Data＞
Key Performance and Financial Indicators (Consolidated)
FY2016FY2017FY2018FY2019FY2020

FY2021

Net sales

155,643

171,967

184,314

182,219

150,234

116,669

Cost od sales

133,404

145,691

160,738

163,780

136,690108,934

Gross profit

22,23826,27623,575

18,43813,544

7,861

8,224

8,954

9,443

14,376

18,052

14,621

9.2%

10.5%

Non-operating income

594

Non-operating expenses

1,105

Ordinary income

13,865

Selling, general and administrative expenses
Operating income
Operating profit ratio

Current assets(Millions of yen)
FY2016FY2017FY2018FY2019FY2020

FY2021

71,74084,49585,554

77,13780,257

69,316

Cash and deposits

34,777

42,68437,571

32,52939,84228,4557,735

Trade notes and accounts receivable

31,26733,25835,99533,056

31,76029,138

9,087

10,368Inventories

4,977

7,102

10,119

9,564

7,399

7,592

8,995

4,456

-2,632

Other

718

1,450

1,867

1,987

1,255

4,130

7.9%

4.9%

3.0%

-2.3%

48,64054,74060,801

73,34779,037

86,845

1,075

764

1,121

1,273

2,191

Property, plant and equipment

42,981

48,90355,18968,346

73,16780,432

385

550

616

342

544

Intangible assets

1,033

1,163

976

767

741

799

18,742

14,836

9,500

5,386

-985

Investments and other assets

4,624

4,673

4,634

4,233

5,128

5,613

Non-current assets:

Extraordinary income

3

14

332

318

2,264

1,277

Total assets:

120,381

139,235

146,356

150,484

159,295

156,162

Extraordinary losses

96

238

279

2,140

4,097

1,201

Current liabilities:

52,266

60,62147,05747,00745,55739,067

13,772

18,51814,889

7,678

3,553

-909

Trade notes and accounts pauable

30,68335,621

26,44825,57924,82322,904

3,687

5,346

3,838

2,455

1,595

1,274

Shrt-term loans payable

3,930

2,911

2,509

1,757

1,694

1,442

Net income/(loss) attributable to Non-controlling interests

-11

706

648

315

-578

-98

Long-term loans payable due within one year

3,029

2,803

2,941

2,912

2,272

4,882

Net-income/(loss) attributable to ow ners of the parent

10,096

12,464

10,402

4,907

2,536

-2,085

Lease obligations

3,908

3,693

3,298

3,344

2,807

2,755

Capital investment

7,222

13,14916,48925,012

17,011

16,313

Other

10,715

15,591

11,85913,412

13,958

7,083

Depreciation & amortization

9,170

9,078

9,561

10,716

10,51010,798

11,584

8,894

22,09723,08933,84840,176

Income before income taxes
Income taxes

Non-current liabilities:

R&D cost

3,212

3,052

3,003

2,968

2,603

3,049

Bonds

4,943

2,069

15,54917,65829,241

34,128

Sales growth rate

-3.2%

10.5%

7.2%

-1.1%

-17.6%-22.3%

Lease obligations

2,887

2,905

2,790

2,089

1,431

2,899

Return on equity(ROE)

18.7%

20.4%

14.7%

6.5%

3.3%

-2.8%

Other

3,753

3,919

3,757

3,341

3,175

3,147

Return on assets(ROA)

11.4%

14.4%

10.4%

6.4%

3.5%

-0.6%

Total Liabilities:

63,851

69,515

69,15570,096

79,40579,243

Earnings per share(EPS)(yen)137.50175.94146.82

69.27

35.75

-29.37

Total net asssets:

56,53069,71977,20080,38779,88976,918Dividend per share(yen)

28.00

34.00

34.00

30.00

30.00

30.00

Interest-bearing debt

18,69914,38327,08927,76237,447

46,108Dividend payout ratio(%)

20.4%

19.3%

23.2%

43.3%

83.9%

-

Net interest-bearing debt

-16,078-28,300-10,482-4,766-2,394

17,652

Dividend on equity ratio(DOE) (%)

3.8%

3.9%

3.4%

2.8%

2.8%

2.8%

Capital adequacy ratio

45.8%

48.4%

50.8%

51.3%

48.5%

47.5%

Dividend yield(%)

1.9%

1.9%

3.3%

6.1%

3.9%

-

Operating cash flow

17,62824,742

3,219

19,584

16,7883,705

Price book-value ratio(PBR)

1.88

1.83

0.97

0.45

0.72

0.52

Investment cash flow

-9,267-13,547-19,539-24,370-17,567-20,107

Price earnings ratio(PER)

10.61

9.91

6.92

7.13

21.65

-

Financial cash flow

-11,196-6,443

10,286-2,012

8,565

3,579

8,361

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

FCF
Number of Employees

5,001

5,072

5,265

5,432

©DaikyoNishikawa Corporation All rights reserved.

5,414

5,482

*Effective from the consolidated fiscal year ending March 31, 2018, the "Partial Amendments to Accounting Standard for Tax
Effect Accounting" (ASBJ Statement No. 28, February 18, 2018) has been early adopted, and the figures for the fiscal year
ended March 31, 2017 are retroactively applied.