As for the business environment in Q1, sales volume declined compared to the previousyear, mainly due to the impact of a partial suspension of domestic production by a majorcustomer. On the other hand, the yen continued to weaken against the US dollar.
The Group's sales increased 4% YoY, reaching JPY51.7 billion, a record high for Q1.
Operating income decreased JPY0.3 billion YoY to JPY2.7 billion. Ordinary income was
JPY5.1 billion, the same level as the previous year, mainly due to foreign exchange gains
from the weaker yen. Net income increased JPY200 million from the previous year to arecord high of JPY4.2 billion.

Net sales increased JPY2.4 billion YoY to JPY51.7 billion, mainly due to a positive impact offoreign exchange rates resulting from the continued depreciation of the yen, despite thenegative impact of sales volume decrease due to lower production output by customers.

Operating income decreased by JPY0.3 billion from the previous year to JPY2.7 billion due
to the significant negative impact of increased depreciation costs and material price hikes,
in addition to the decrease in sales volume.

In the stamping & plastic molding business, sales increased 5% YoY to JPY37.3 billion due
to the impact of yen depreciation, despite a decrease in sales volume. Operating income
decreased by JPY0.7 billion to JPY1.4 billion, mainly due to a decrease in volume and anincrease in depreciation expenses.
In the valves business, sales increased 3% to JPY14.3 billion due to weaker yen, andoperating income increased JPY0.4 billion to JPY1.3 billion due mainly to the decrease indepreciation expense, despite a decrease in sales volume.

Sales in Japan decreased 3% YoY to JPY16.2 billion due to lower production volume ofvehicle. Operating income decreased by JPY0.7 billion to JPY0.8 billion due to decreased
sales volume and increased depreciation cost.
Sales in Europe & America increased 20% to JPY27.1 billion due to the weak yen and steadyautomobile production. Operating income increased by JPY0.5 billion to JPY1.3 billion dueto increased volume and decreased depreciation cost.
Sales in Asia declined 16% to JPY8.3 billion, mainly due to lower production in China.
Operating income decreased by JPY0.1 billion to JPY0.4 billion due to decreased sales
volume.

Based on the Q1 results and changes in the external environment, including customers'
production plans, we have upwardly revised our full-year forecasts. Compared to theprevious plan announced on April 25, we raised sales forecast by JPY1 billion to JPY201billion. Forecast for operating income is raised by JPY0.5 billion to JPY11.5 billion. Forecast
for ordinary income is raised by JPY1.5 billion to JPY14.5 billion, partly due to foreignexchange effects. Net income is revised up by JPY1 billion to JPY11 billion.
The forecasted exchange rate is JPY150 to the US dollar from Q2 onwards. The exchange
rate sensitivity is JPY0.1 billion per year, per yen.

For the full year, we forecast net sales of JPY201 billion, down JPY6.3 billion from JPY207.3
billion in the previous year, due to lower sales of dies and molds, lower volume in China,and lower sales prices.

Operating income for the full year is projected at JPY11.5 billion due to the negative impactof lower sales volume, price revisions, material price hikes, and increased labor costs.

Sales in the stamping & plastic molding business is expected to be JPY143.6 billion due toa decrease in overseas sales volume. Operating income is projected to decrease by JPY3.3
billion to JPY7 billion due to a decrease in sales volume and an increase in depreciation
expenses.
Net sales of the valves business are projected to be JPY57 billion, the same level as theprevious year, due to the assumed exchange rate of JPY150 for Q2 and beyond, although
the sales volume is expected to decrease. Operating income is projected to increase byJPY0.3 billion to JPY4.5 billion due to a decrease in depreciation expenses.

Sales in Japan is expected to be JPY69.6 billion due to an increase in shipment volume.
Operating income is projected to decrease by JPY1.4 billion to JPY4.8 billion, mainly due toincreases in labor cost, expenses, and depreciation cost.
Sales in Europe & America is expected to be JPY94.4 billion due to lower sales of dies andmolds. Operating income is projected to decrease by JPY0.8 billion to JPY3.5 billion due todecreased sales volume and increased labor costs.
Sales in Asia are expected to be JPY37 billion, assuming lower volume in China. Operating
income is projected to be JPY2.7 billion, the same level as the previous year, due to adecrease in depreciation expenses, despite a decrease in sales volume.

The new plant for stamping business has been in full-scale operation since Q3 of last year,
and profits have been declining due to the associated increase in preparation anddepreciation costs. From Q4 last year through Q2 of the current fiscal year, sales volume
is expected to decline due to a partial shutdown of a customer's production line, resulting
in lower sales and profit.

We are making growth-oriented capital investments for the future, in addition to normal
investments such as for production preparation and enhancement. In FY2024, we plan tomake a capital investment of JPY30 billion, including investment in the construction of a
new valve plant, die factory, and development center.

Total assets in the consolidated balance sheet decreased by JPY3.6 billion at the end ofJune 2024 compared to the balance at the end of March 2024. In addition, the Company
plans to gradually unwind cross-shareholdings, and sold JPY15.8 billion-equivalent sharesin the last fiscal year.
The balance of holdings, including deemed shares, decreased from 22.7% of net assets at
the end of the previous fiscal year to 19.9% at the end of Q1 this year.

Both for the stamping and valves business, we are promoting plant constructions for growth.
In the stamping business, in order to expand business with ultra-high tensile strength
method, we have completed the construction of a new die factory on the Higashi-Ogaki
plant site in January and operations will begin in November. We are in the process ofintroducing a high-speed machining center and a large tryout-stamping machine toenhance our die manufacturing capacity and development of engineering method,especially for ultra-high-tensile strength stamping method.
In the valve business, we are constructing a plant to produce valves for electrified vehicles
in order to increase production capacity and strengthen competitiveness in anticipation ofmarket expansion associated with electrification. Electronic expansion valves for thermal
management systems are currently being produced for battery cooling, and their adoption
is expected to increase for PHEVs as well.
Our electronic expansion valves are compact and lightweight compared to other companies'
products, and we can also develop modules that combine our other mainstay products,
such as check valves and charge valves, to flexibly meet customer needs, which will leadto increased adoption.

We have developed and launched ENEGRAPH in May, an edge device that collects usage
data from meters and a web system. It collects usage data from production facilities thatuse electricity, gas, air, and water, and visualize them in real time through the cloud.
It costs only JPY20,000 per device, and it can be easily installed, making it possible tovisualize energy usage without a large and expensive system. It helps customers activities
for energy-saving, cost reduction, and CO2 emissions reduction.
We will continue to promote the development of products to solve the issues faced bycustomers and society, thereby enhance our corporate value. We appreciate your continued
support.