Now, I will explain the outline of our business and main products.
We were founded in 1930 to manufacture valve cores in Japan. The Company was listed on the TSE SecondSection in 1962, and listed on the First Section in 1970. Our JCR credit rating is A-Stable.
In Japan, we operate eight plants in the Chubu, Kyushu, and Tohoku regions. Overseas, we operate eightplants. We have 18 consolidated subsidiaries in Japan and overseas.
Our business is broadly divided into two areas. The first is the Stamping and Molding business, which consistsof stamping products and resin products, and the Valve business, which consists of valves and TPMS products.
We produce, sell, and develop the products shown in the slide.
The Stamping and Molding business accounts for about 70% of total sales. We deal mainly with the ToyotaGroup and with Honda, Suzuki, and Mitsubishi. Overseas, we have bases in the US, China, Taiwan, and Thailand.
The Valve business accounts for approximately 30% of total sales. In addition to the US, Belgium, China,Taiwan, South Korea, and Thailand plants, our overseas bases include Schrader SAS, which was acquired in2018, and we hold the top share of the global tire valves market.

I would like to explain the consolidated financial results for FY2019, our 96th fiscal year.
Automobile production by our major customers has generally been steady. In the fourth quarter, productionbegan to decline due to the worldwide spread of the new coronavirus.
As a result, sales and operating income reached record highs, while ordinary income and net income declined.
Consolidated net sales increased 14.4% YoY to JPY165.969 billion, a record high for the third consecutive year.
This was due to expanded sales of ultra-high-tensile materials and increased sales volumes in the Stampingand Molding business, as well as the full-year inclusion of the results of Schrader SAS, which was acquired inAugust 2018 in the Valve business.
Operating income rose 2.0% to JPY10.511 billion, marking the second consecutive year of record-high incomegrowth. Ordinary income declined 5.4% to JPY11.13 billion. Net income declined 16.9% to JPY7.256 billion,reflecting the posting of an extraordinary loss.
Next is the outlook for the next fiscal year.
Due to the spread of COVID-19, the business environment is becoming increasingly challenging due tofluctuations in production and sales plans of Japanese and overseas customers. Under these circumstances,it is currently difficult to calculate a reasonable and rational forecast of business performance, and thereforethe forecast for the next fiscal year has not been determined. We would like to disclose the information assoon as it becomes possible to make a reasonable forecast.

The following describes the factors behind the changes in each line profit for FY2019.
Operating income increased by JPY200 million to JPY10.5 billion. The positive factors were sales expansionand sales volume increase by JPY5.7 billion, and cost improvement by JPY2.1 billion. Negative factors includea JPY2 billion increase of depreciation and amortization, including amortization of goodwill, as well asincreased labor costs and expenses, and lower selling prices.
Ordinary income decreased by JPY600 million, mainly due to a foreign exchange loss of JPY800 million.
Net income declined JPY1.5 billion due to JPY1.5 billion in extraordinary loss. This is mainly due to animpairment loss of JPY1.3 billion at our Chinese subsidiary.

Next, I will explain the breakdown of sales by segment in FY2019.
By business segment, the Stamping and Molding business accounted for 70% of the total, or JPY113.8 billion,while the Valve business accounted for approximately 30% of the total, or JPY51.8 billion.
By region, Japan accounted for nearly 50% of the total at JPY77.7 billion, Europe and America for slightly above30% at JPY58.9 billion, and Asia for nearly 20% at JPY29.2 billion.

Next, I will talk about each business segment.
Sales in the Stamping and Molding business increased 13.3% to JPY113.8 billion due to the contribution ofincreased sales of new products.
Operating income decreased 9.4% to JPY3.87 billion due to an increase in depreciation and amortization,despite an increase in sales volume and an improvement in cost of sales.

In the Valve business, sales increased 17.1% to JPY51.8 billion, due to the full-year contribution of SchraderSAS, which we acquired in August 2018, and an increase in the volume of TPMS.
Operating income increased 9.5% to JPY6.57 billion, mainly due to a decrease in acquisition costs incurred inthe previous fiscal year.

Next, I will talk about the regional segments.
Sales in Japan increased 9.7% to JPY77.7 billion, due to an increase in sales volume. Operating incomedecreased 6.7% to JPY5.3 billion, due to an increase in depreciation costs associated with strategic capitalinvestment.

Sales in Europe and America increased 33.3% to JPY58.9 billion and operating income increased 14.4% toJPY2.2 billion, thanks to the contribution of the acquired Schrader SAS. I would like to mention that SchraderSAS's performance is trending at the same level as originally planned.

Sales in Asia decreased 2.2% to JPY29.2 billion, due mainly to foreign currency translation adjustments, butoperating income increased 1.9% to JPY2.35 billion due mainly to cost reductions.
The fiscal year of the four Chinese companies close in December, so the impact of reduced production due toCOVID-19 will not be felt during the fiscal year under review.

Next, I will explain capital investment and depreciation.
Capital investment increased by 7% from the previous fiscal year to JPY23.45 billion for the year under review.
The breakdown shows that capital investment in Japan increased 45% to JPY16.38 billion, while the amountwas JPY4.93 billion in Europe and America and JPY2.13 billion in Asia.
Consequently, depreciation and amortization increased 12% over the previous fiscal year, to JPY14.19 billion.

Next, I will explain the main contents of capital investment.
In the Valve Business, new TPMS lines were added in the US and China. We invested in synergies with SchraderSAS in the US and France. In Japan, we expanded our forging facilities, and in South Korea, we expanded ouraluminum die casting competence.
In the Stamping and Molding business, we have built ultra-high-tensile stamping working lines in Japan andoverseas. We have introduced large-class presses for cold ultra-high-tensile and hot stamps as a lineup inJapan, the United States, and Asia.

Consolidated cash flows for FY2019 include an inflow of JPY21.1 billion from operating activities and anoutflow of JPY24.2 billion from investing activities, including capital investment. As a result, free cash flow wasnegative at JPY3 billion.
Financing activities funded JPY2 billion and paid JPY2.1 billion in dividends. As a result, the cash balance at theend of March 2020 was JPY18 billion, a JPY3.4 billion drop from the end of the previous fiscal year.
Interest-bearing liabilities increased by JPY2 billion to JPY63.6 billion.

Next, I would like to talk about the dividend policy.
The Company pays dividends that are consistent, stable, and in line with business performance. With regardto the year-end dividend, as net income fell short of the previously announced guidance, the dividend amountwas revised to JPY14 so that the annual dividend payout ratio will be at the same level as when the forecastwas met. The annual dividend for the fiscal year under review will be JPY30, including the interim dividend ofJPY16 already paid.
The dividend payout ratio will increase 2.2% to 25.0%. Dividends for FY2020 have not been announcedbecause performance forecasts have not been determined yet.

Finally, please take a look at our individual results.
Sales increased 7.6% YoY to JPY89.901 billion, thanks to the acquisition of new sales. In terms of profits,operating income decreased 15.2%, to JPY5.212 billion, ordinary income decreased 6.4% to JPY7.37 billion,and net income decreased 31.5%, to JPY4.038 billion. A decline in profits resulted despite an increase in salesvolumes and cost improvements, lower sales prices, higher labor costs and expenses due to the increase insales volumes, and an increase in depreciation expenses due to aggressive capital investment.
That’s all about our performance in FY2019.

Next, I will explain our efforts against COVID-19.
Based on a policy of establishing a GLOCAL foundation with top priority on preventing infection andmaintaining manufacturing capabilities, we are conducting short and medium to long-term measures incooperation with employees, families, customers, suppliers, and local communities in Japan and overseas.
As a measure to prevent infections with top priority on the health and safety of employees and their families,we are implementing health management initiatives both in Japan and overseas. In addition, we are takingmeasures to ensure social distance, such as teleworking and split operations, and to avoid the 3C’s.
As initiatives to maintain employment and supply chains, we are protecting employment while utilizing leavesystems in each region. At the same time, we are working to maintain supply chains through constantcommunication with suppliers.
Regarding the production system, we have suspended operations in each region under governmentregulations, and have adjusted production in line with a decline in customer demand. In addition, we arebuilding a system that can respond flexibly to changes in production by customers, while confirming ourinventory supplement system in Japan and overseas.
We are also in the process of preparing simulations, manuals for countermeasures, and equipment based onthe scenario that infections occur within the Company.

In terms of financing, we are strengthening our Group-wide financial management, in light of the decline insales due to the impact of COVID-19 and future economic trends. In addition to short-term borrowing facilities,we are setting a commitment line with banks to be prepared for declines in sales and working capital.
We are working closely with authorities around the world to maintain a production system whileimplementing thorough epidemic prevention measures. We are also driving GLOCAL efforts to deepen tieswith employees, their families, and local communities.
On May 14, the declaration of emergency was lifted in some areas, and efforts for a new way of life are nowunderway. Nevertheless, in order to avoid the occurrence of the second wave, we will continue to respondwith a sense of urgency with our internal and external epidemic prevention measures.
I will now conclude my talk on measures against COVID-19, and discuss the medium- to long-term strategicinitiatives.

We will speed up the most recent measures I explained earlier and strategically implement medium- to longterm measures reflecting improvements and reforms under these circumstances.
First, we are working to reduce costs and streamline operations. We are speeding up the process of reducingfixed costs, improving the cost structure, and curbing investment. We are now implementing reforms, suchas personnel systems that match the volume of production, and reducing and reviewing nonessential jobs.
The second issue is business restructuring. With the once-in-a-century transformation of the automotiveindustry towards the mobility society taking place, we will develop new businesses in addition to our existingStamping and Molding and Valve Businesses. We will deepen our core technologies, develop and build newtechnological domains, and establish a business structure that looks ahead to future growth.
Third, manufacturing is essentially about the development of people. We are a manufacturing company, andhuman resource growth is essential for sustainable growth. Through the recent COVID-19 crisis, we view theopportunity for existing ways of business to greatly change, and we are working to cultivate human resourcesthrough constant improvements. We will continue to cultivate next-generation talent both in Japan andoverseas based on our belief that manufacturing is about developing people.
In order to maximize the effects of these efforts when production recovers, we will speed up our efforts withclear priorities.
We are planning to make a revision of the current medium-term management plan OCEAN-22 in light ofresponses to the COVID-19 crisis and upcoming medium-term strategies.
Next, I will explain our medium- to long-term business development.

I will walk you through our efforts in the Stamping and Molding business.
Light weight is one key theme of next-generation automobiles, and we will further promote the use of ultrahigh tensile steel that ensures formability, accuracy, and mass productivity in order to provide body shell partswith the highest level of strength and rigidity while reducing weight.
In addition to the evolution of cold forming and mass production technology for 1180MPa materials, we willaccelerate the processing development of 1470MPa materials, including the expansion of hot stamping.
In addition, we have improved material yields, reduced costs, and increased mass production of aluminumfriction stir welding, or FSW, for further expansion.
As I explained in the main strategic investments, we have introduced large stamping machines and hot stampsat eight plants in Japan and overseas in conjunction with the expanding adoption of ultra-high-tensile, and areworking to improve our supply system.
In resin technology, we are applying the technology to all-urethane engine covers through design andevaluation from the material development stage, including weight reduction development. Through thermalmanagement analysis, we are developing soundproofing and vibration-proofing materials for engines.
In addition, we are advancing vehicle body structure analysis technology, as well as stamping forming andanalysis technology. As a body shell manufacturer, we are building a collision analysis model in the subassembly state, as we aim to become a specialized manufacturer capable of proposing optimal and low-costbody structures.

In the Valve business, we are working to accelerate the integration of management with Schrader, which weacquired in 2018.
With the aim of becoming the world's top manufacturer of valves, we are thoroughly sharing cost-reductionmeasures in production. On the development front, we are working to accelerate the development of newproducts and provide new product technologies to customers. In sales, we aim to establish a businessfoundation through the expansion of sales networks and raise our presence in the global market, leveragingthe fact that the two companies’ market coverage does not overlap. We will strengthen our competitivenessby mutually incorporating the advantages of each company.
In the Forge Stamping business, we are developing, producing and supplying parts such as lightweight, thinwalled transmissions and hybrid parts using plate forging technology that combines the productivity of sheetmetal forming with the high-precision technology of cold forging.
In our Aluminum Die Casting business in South Korea, we have built an integrated production line from diecasting to cutting for parts for electric compressors for EVs and for parts processing for units, which haveearned a reputation among customers for their high quality. We are also increasing our capital investment forfurther expansion.

We have long been deepening our existing technologies and applying them to new fields of technology. I cansay that the ultra-high-tensile processing and TPMS technology are prime examples.
Today, in light of the mobility society and CASE era, we are looking to develop the functions of our coretechnologies, expand and deepen new technological domains, and reform the structure of our business.
As you know, the TPMS market is generally saturating, but its functions are becoming more developed. Wewill continue to develop next-generation products as we keep watching market trends.
We are also driving forward the development of functions and products that apply sensing and wirelesstechnologies cultivated in TPMS.
With the shift from engines to EVs, we believe that the need for noise reduction and comfort will becomeeven higher, with tighter regulations on motor noise and external noise.
With regard to polyurethane foam, which we have been developing from the material stage, we intend toenhance its performance and increase its applications through incorporating further production technologiesand noise controlling capabilities.

Together with the development of such proprietary technologies, we are also working on the utilization of IoTand AI.
Big data generated from IoT and AI is a tool to innovate society and production structures in the future, andwe are working to reduce costs, improve quality, and strengthen our business structure by utilizing it as thecore of manufacturing.
As a component manufacturer, avoiding production stoppages related to the breakdown of stampings anddies is a crucial demand. We use big data to analyze and construct information on the load, deflection,vibration, and such of equipment and dies to prevent failures and product defects.
On the other hand, for stamping products and valve products, AI is being introduced and utilized to reducethe number of inspectors and improve quality in the visual inspection process. Regarding the visualinspections and issues like cracks in stamping products, we are working to collect basic information throughAI in quality checks, and to use this information in structural analysis.

Finally, this year, we celebrate the 90th anniversary of our founding. As stated in PACIFIC GLOCAL VISION, wewill continue to pursue sustainable management with emphasis on ESG-based management and SDGs in orderto earn strength to become a 100-year-old company.
Although we are in a difficult period where an exit is not in view, we will move forward with the belief thatmanufacturing is about developing people. We are committed to sharing passion and information with ourstakeholders towards the creation of new businesses under the slogan “Passion in Creating Tomorrow”.