FY2023 Third Quarter
Financial Results Briefing
The 100th period：Apr. 1st, 2023- Dec.31st, 2023

Feb. 1st, 2024

Contents

１．FY2023 Q3 Financial Performance
２．Financial Forecast (FY2023 Full Year)

Cautionary Statement with Respect to Forward-Looking Statements
These materials contain forward-looking statements that reflect our current expectations. These forward-looking
statements are not guarantees of future performance. It involves any risk depending on the Japanese orinternational economic situation, business trends related to our company, fluctuation of exchange rates and otherfactors. It may cause our actual performance to be materially different from any future results announced.

2/19

1-1 Q3 Consolidated Financial Summary
Sales volume increased due to steady automobile production, and bothsales and profits reached record highs（100 millions of yen, ％）FY2022

FY2023

23/3Ｑ

23/3Ｑ
Cumulative
ResultCumulative
ResultSales
Operating Income
Operating Income Ratio

Ordinary Income

YoY rate
Gain&Loss% Change

1,434Record High

1,559

+125＋8.8

56

Record High112+55＋97.5

7.2%

+3.2P

143+589.2%+3.3P

109+47+2.7P

4.0%

85Ordinary Income Ratio

5.9%

Net income attributable toowners parent

62

Record High

Record High

Quarterly Net Income margin

4.3%

7.0%

Average exchange rate（U.S. dollars）¥135.4¥143.2¥7.8－＋68.4－＋75.9－－* Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials for stamping.
As a result of this, fiscal 2023 3rd quarter cumulative results includes a 22billion yen year-on-year decline in net sales. No impact on income.

3/19

1-2 Analysis of Q3 Cumulative Results : Sales
Record high for 3Q due to increase in sales volume more than decrease insales due to the impact of customer-received steel materials for stamping.

Material
Customer-received

1,434

Exchange

Exchange

Conversion

Gain

Price+45+4(100 millions of yen)

1,559

steel materials+67

for stamping
Sales
Volume+239△226
Selling

Price△4FY2022
Q3Cumultive
Results

FY2023

Sales +12.5 billion yen

Q3 Cumultive
Results

4/19

1-3 Analysis of Q3 Cumulative Results: Operating IncomeCosts increased due to sales volume up. Record-high profit for Q3
due to increased sales volume and cost improvements.
(100 millions of yen)
Depreciation
Cost(excl.dies)

Improvement+6

Exchange
Gain+4112+2356

LaborSales

Cost

VolumeMaterial△15Price△13+64
Expenses△10SellingPrice△4FY2022
Q3 Cumultive
Results

FY2023Operating Income+5.5 billion yen

Q3 Cumultive
Results

5/19

1-4 Q3 Cumulative Results by Business Segments
Sales and profits increased in the stamping and plastic molding business.
Sales of valves increased, but profits decreased.

（100 millions of yen,％）SalesStamping &Plastic Molding

Operating Income

22/Q3

23/Q3

YoY Rate

22/Q323/Q3

YoY Rate

ResultResultGain&Loss %Change

ResultResultGain&Loss %Change

2078+582.0%

7.0%+5.0P

3633△28.9%

7.8%

△1.1P

1,027

1,130
※

(The Impact of increased
customer-received materials forstamping)+103+10.1(△226)

Operating Income Ratio

Valves405

Operating Income Ratio+286.5427+21+5.3△7.3*Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steelmaterials for stamping. No impact on income.

6/19

1-5 Q3 Cumulative Results by Region
Sales and profits increased in Japan, Europe and America in real terms. Salesin Asia remained at the same level as the previous year, while income declined.
（100 millions of yen,％）SalesJapan

22/Q3

23/Q3

ResultResult553536

Operating Income
YoY Rate

Gain&Loss%Change△17△3.1

Operating Income Ratio

559

703

+144+25.8

Operating Income Ratio

Asia
Operating Income Ratio

23/Q3

ResultResult35

YoY Rate
Gain&Loss%Change59+23+65.1

6.5%

11.1%

+4.6P

△1325+38△2.3%

3.6%

+5.9P

2918

△119.2%

5.8%△3.4P* (△226)(The Impact of increased
customer-received materials forstamping)

Europe & America

22/Q3321319△1△0.4-△37.9* Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials for stamping.
No impact on income.

7/19

１．FY2023 Q3 Financial Performance
２．Financial Forecast (FY2023 Full Year)

8/19

2-1 Full Year Financial Forecast
Revised the forecast upward to reflect the Q3 results, expecting record highs for bothsales and profits.
（ 100 millions of yen, ％）FY2022

FY2023

YonY rate

Diff. from Previous Forecast

Full Year

Full Year

Full Year

Full Year

Forecast on
26th Oct.

Latest Forecast

1,912

1,980

Operating Income

92

Operating Income Ratio

Results

Gain&Loss%Change

Gain&Loss%Change

2,000

+87

4.6%

+20

1.0%

120

130

+37

39.8%

+108.3%

4.9%

6.1%

6.5%

+1.6P

－+0.4P－

Ordinary Income

132

150

160

+27

21.1%

+106.7%

Ordinary Income Ratio

6.9%

7.6%

8.0%

+1.1P

－+0.4P－93105115+2123.6%+109.5%

ＲＯＥ

7.0%

7.1%

7.8%+0.8P－+0.7P－ＲＯＡ(Operating income basis）

3.7%

4.5%

4.8%

+1.1P

－+0.3P－Net Assets per Share

2,309円

2,712円

2,678円

369円

16.0%

△34円

△1.2%

Average exchange rate (US dollars)

134.9円

140.0円

142.2円

7.3円

－2.2円

－SalesCurrent Net Income *１*２*1 Current net income is the current net income attributable to the parent company shareholders.
*2 Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of steel material costs
procured from customers. As a result of this, fiscal 2023 includes a 25 billion yen year-on-year decline in net sales. No impact on income.

9/19

2-2 Analysis of FY2023 Forecasts: Sales
The decrease in sales due to the impact of customer-received steel materials
for stamping will be offset by the increase in sales volume, which is expected to（ 100 millions of yen）
reach a record high.
Customer-received

Materialsteel materials

1,912

Pricefor stamping

Sales
Volume△250
Selling

Exchange

ExchangeConversion

gain

2,000+6+55+75+207

Price△6FY2022

Sales ＋８.７Billion yen

FY2023
Forecast

10/19

2-3 Analysis of FY2023 Forecasts : Operating Income
Costs increased due to sales volume up. Expected to reach record profits
due to increased sales volume and continued improvements.
(100 millions of yen)
Cost
Improvement

92

LaborSales

Cost

Volume△20Exchange
gain+6Depreciation(excl.dies)

130+4+29

Expenses
Material△16Price
Selling△15+55Price△6FY2022

Operating Income + ３.７billion yen

FY2023
Forecast

11/19

2-4 Forecast by Business SegmentsThe stamping and plastic molding business is expected to increase sales andprofits, while the valve business is expected to see an increase in sales and adecrease in profits.
（100 million yen,％）

Sales

Operating Income

FY2022

FY2023ResultForecast

Gain&Loss

Stamping &Plastic Molding

1,368

1,448+79(The Impact of increased
customer-received materials forstamping)(△51)(△301)(△250)*

YoY Rate

FY2022

FY2023%Change

ResultForecast

Gain&Loss%Change+5.8

4992+42+84.8※

Operating Income Ratio

ValvesOperating Income Ratio

542550+7

YoY Rate+1.5

3.6%

6.4%

+2.8P

4238

△47.9%

6.9%

△1.0P

△10.8

*Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials for stamping.
No impact on income.

12/19

2-5 Forecast by Region
Sales and profits are expected to increase in real terms in Japan, Europe andthe America. Sales and profits are expected to decline in Asia.
（100 millions of yen,％）SalesJapan(The Impact of increased
customer-received materials forstamping)Operating Income

FY2022

FY2023ResultForecast

Gain&Loss706685△21(△301)(△250)(△51)*YoY Rate

FY2022

FY2023%Change

ResultForecast

Gain&Loss%Change△3.04963+13+26.3

7.1%

9.2%+2.1P△130+31△0.2%

3.3%+3.5P

3628△88.7%

6.7%

△2.0P

Operating Income Ratio

Europe & America

781900+118+15.2

Operating Income Ratio

Asia

425

Operating Income Ratio

415△10△2.4

YoY Rate-△24.1* Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials
for stamping. No impact on income.

13/19

2-6

Capital investments and Depreciation

Aggressive investments in new stamping plants and new valve productionlines with capital efficiency considerations.
Capital investment（100 millions of yen）

Asia
Europe &America

235
162
18
61

Japan

164
84
'19

380
2030

（100 millions of yen）

229

21
49

Depreciation

'20

181

27

23

44

330

35

119

'21

163

'22’23'23（予）forecast

165

182

188

27

26

142

146

25
33

23
38

84

85

92

100

121

'19'20'21'22’23'23(予)forecast
14/19

26
4655

40

2-7 Consolidated balance sheetFixed assets increased due to investment in new stamping plants, etc., and market value
evaluation of cross-shareholdings. Promote sequential sale of cross-shareholdings with atarget of 20% or less of net assets.

＜ Main increase/decrease details ＞
Assets・Property, plant and equipment+155（Investment in new stamping plants, etc.）
・Other fixed assets（Market value evaluation of held stocks）+93

Liabilities

Net Assets

・Trade payables, etc.
+65
・Interest-bearing liabilities △48

・Quarterly net assets+109
・Retained earnings△26・Valuation and translation
adjustment+115

15/19

2-8 Topics
Improve the competitiveness of existing businesses by strengthening customer
proposal capabilities and improving productivity
Expand Stamping
Business Orders

New Stamping Plant
Operation Status

・Obtained many new orders by strengthening communication

・Mass production of stamping products such as ultra highwith customers and proposing activities that utilized ultra-highstrength parts and HEV battery cases

tensile strength technology

・Efficient production line that follows the process flow

・Contributes to the establishment of a highly rigid body that

・Improve productivity by introducing automatic transport and AGV

achieves both collision performance and cost reduction

・Improve the ease of working in plants and offices

16/19

2-9 Topics
Utilizing IoT technology and new ideas to help solve customer and social issues
New model
Of “e-WAVES”

IoT New Products

Our Upcycled Brands”Chokkyu Rakuraku” as workplace improvement tool.

We named it ”LcycL”

・Achieving paperless workplaces, improving
quality and operational efficiency easily at low
New model of “e-WAVES”
as the multi-sensing loggercost

Sound absorbing panels withconsideration for neighbors

・Enables remote real-time temperature

・The upcycled product has started selling.

management
・Expanded product lineup, started selling entry

model with narrowed measurement items“Gokkuon” as swallowing checker

・Easily measure the number of saliva swallows
・Easily check oral frailty

・Utilizing waste materials generated
during the manufacturing process ofautomobile parts as resources

17/19

2-10 Activities for the next term
Work to minimize risks and maximize opportunities due to changes
in the business environment■Changes, risks, and opportunities in the business environment・Continued rise in raw material and energy prices
Risks

Opportunities

・Exchange rate fluctuations due to changes in Japan-U.S. Monetary policy, concerns
about a slowdown in the North American economy
・Expanding demand for new products due to progress in vehicle electrification■Activities in the future
・Promote cost improvement and price pass-through, strengthen profit structure
Business・Expand existing business by seizing business opportunities in vehicle electrification
・Speed up development in non-automotive business and discover more new businesses

Finance・Improving capital efficiency by improving investment efficiency and balance sheet
improvement
・Improve PER and PBR by improving ROE and enriching IR

18/19