May 28, 2021

FY2021 ended March 31,2021

Financial Results Briefing

Copyright 2021 Nihon Parkerizing Co., Ltd.

1目次
 Overview of FY2021 ended March 31,2021
 Business segment and sales composition ratios
 Consolidated Business Results
 Consolidated quarterly trend Consolidated income statement
 Financial results of business segments by area Variation analysis of operating income
 Non-operating income and Extraordinary gain and loss Capital investment
 Research and Development
 Consolidated balance sheet
 Consolidated cash flow
 Forecast of FY2022 ended March 31, 2022
 Dividend policy and shareholder return Progress of third mid-term management plan Supplementary information
 Consolidated financial highlights
 Subsidiaries and affiliated companies

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Business segment and sales composition ratios

Chemicals Surface treatment chemicals for adding
corrosion resistance, creating a paint base,providing lubrication, cleaning substrates,
design features and other various purpose.
 Rust proof oil and packaging material
 Rolling oil and lubricants Electroless plating solution（KANIGENPLATING）
 Other products

Equipment Plant for automotive industries
 Pretreatment, E-coat equipment for
general industries
 Powder Coating Equipment（PARKER
IONICS）
 Wet booths and Dry booths

Jobbing Rust proof coating
 Salt-Bath Nitriding（ISONITE）
 Gas carburizing, carbontriding, lowtemperature carbonitriding
 Gas nitrocarburizing Electroless plating process（KANIGENPLATING）
 Other various surface treatment

Other Building maintenance Others

Copyright 2021 Nihon Parkerizing Co., Ltd.

2021/3
Other
3%
Jobbing39%

Sales
consolidated
99,918million yen

Chemicals
41%

Equipment
17%3Consolidated Business Results（Unit: million yen）
Sales

Operating income

Ordinary income

Net income attributableto parent company(Sales)(Profit)

140,000

120,000

100,000

99,79318,04615,17915,393

17,453
14,8508,463

2013/3

10,142

9,975

30,00099,91817,921
15,766

18,77916,934

12,22840,0000109,569

119,028

114,840

20,75013,14620,000102,514

109,063

89,91980,00060,00035,000129,207

17,984

12,721

10,32020,13017,02325,00020,00015,723

12,601
11,424
9,449

14,197

15,00010,681
9,999

10,0005,000

2014/3

2015/3Copyright 2021 Nihon Parkerizing Co., Ltd.

2016/32017/3

2018/3

2019/32020/32021/30

4

Consolidated quarterly trend（Unit: million yen）
Sales

Operating income

Ordinary income

Net income attributableto parent company(Profit)(Sales)
40,00035,00030,0009,000

36,96831,8968,000

32,251

30,69628,091

29,27028,76930,29130,223

5,690
25,00020,000

5,066

3,998

4,979

10,000

5,146
5,002

4,197

15,000

3,825

4,116
3,957

3,652

3,421

3,184

2,454

5,000
0

4,393

3,771
2,829

23,524
20,793

2,383

1,638

１Q

２Q

３Q

４Q

2019/3Copyright 2021 Nihon Parkerizing Co., Ltd.

２Q

３Q

2020/3

2,893

2,557
1,802
1,190

１Q

4,420

3,903
3,188

４Q

1,554
1,199

25,376

5,328
4,144

3,832

1,764

２Q

5,000

3,000
2,000
1,000

716
１Q

6,000

4,000

3,884

2,916

2,221

7,000

３Q

４Q

0

2021/3

5

Consolidated income statement（Unit: million yen）
2019/32020/3

Change% Change
Decreased due to the effects

119,028

99,918▲19,110▲16.1% of COVID-19.

Operating income

12,601

10,681▲1,920▲15.2%

Ordinary income

15,723

14,197▲1,526▲9.7% Non-operating expenses

9,449

9,999

549

5.8% Extraordinary loss 1,600

Net Sales

Net income attributable toparent company
shareholders
Net income per share

78.87円84.75円Non-operating income

Extraordinary gain 3,865--

Ratio of ordinary income tototal assets

7.2%

6.5%

-

-

Return on equity（ROE）

6.7%

6.8%

-

-

109.05円

106.82円--

The average exchange rate
(USD)

4,187
671

 Overseas sales ratio 42.2%（※Including exports from japan）
 Foreign currency translation effect:
Sales approx. ▲1,157 million yen, Operating income approx. ▲71 million yen
Copyright 2021 Nihon Parkerizing Co., Ltd.

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Financial results of business segments by area
（Unit: million yen）
2019/3Chemicals
Japan
Asia
Europe and North America
Inter-segment
Equipment
Japan
Asia
Europe and North America
Inter-segment
JobbingJapan
Asia
Europe and North America
Inter-segment
OthersAdjustments and Eliminations

Total

47,35529,822
15,339907
1,285
24,64910,33812,754825
730
45,483
26,941
11,305
7,177
58
3,985
▲2,444
119,028

Net sales
2020/3

41,57526,286
13,540778
969
17,860
7,783
9,165
561
349
39,153
23,691
9,013
6,391
57
2,783
▲1,454
99,918Changes▲5,779▲3,536▲1,799▲128▲315▲6,788▲2,554▲3,588▲264▲381▲6,329▲3,250▲2,292▲785▲1▲1,202990▲19,110

Operating income
2019/32020/3
Changes
7,696
4,414
2,407
257
616
618
344
▲159
95
338
7,340
5,204
1,766
167
200
▲1,250▲1,803
12,601

6,380
3,589
2,011
205
574
430
▲98
241
▲38
326
5,206
4,352
920
▲309
243
39
▲1,376
10,681▲1,316
▲825
▲396
▲52
▲42
▲187
▲442
400
▲133
▲12
▲2,133
▲852
▲846
▲477
42
1,289
427
▲1,920(Note)• Sales and profit of each segment include internal sales and transfers between segments.
• From this year, we changed the segment classification method. As a result, we changed some equipment
sales, logistics services and metal test piece sales included in other business to the Chemicals segment. And
we have changed some chemicals sales to the Jobbing segment. The segment information for the previous
year was created by the new classification method.



Due to the economic downturn caused by COVID-19 infection, sales and profits decreased inall segments.
As a result of all Group companies doing to reduce costs, we earned operating income of
10,681 million yen.

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Variation analysis of operating income（Unit: million yen）
14,00012,00012,601

10,0001,558▲5,785
405
1,371

8,000

Sales

6,000

decreased

▲141

▲68

Raw

Foreignmaterial
cost

4,000

Currency
Translation
effect780
Depreciation

Labor

Allowance

10,681

Other
costs

cost

for
doubtfulaccounts

販管費の減少SG&A expense

2,000

0
2020年3月期

2020/3Copyright 2021 Nihon Parkerizing Co., Ltd.

2021年3月期

2021/38

Non-operating income and Extraordinary gain or loss As a result of gaining interest income, dividend income, equity method in earnings of affiliates,
technical fees received, etc., ordinary income was 14,197 million yen.
 Extraordinary income was 3,865 million yen (including gain on contribution of securities toretirement benefit trust of 3,010 million yen), extraordinary loss was 1,600 million yen (including
impairment loss of 1,211 million yen). As a result, net income attributable to the parent company
shareholders was 9,999 million yen.
（Unit: million yen）
2020/32021/3

Changes

Operating income

12,601

10,681▲1,920Non-operating profit

4,096

4,187

+91

Interest income

418

346

▲72

Dividend income

680

580

▲100

License royalty

426

706

+280

Equity in earnings of affiliates

1,321

652

▲669

Other income

1,248

1,902

+653

974

671

▲302

Interest expense

38

29

▲9

Other expense

935

642

▲293

15,723

14,197▲1,526Extraordinary income

589

3,865

+3,275Extraordinary loss

752

1,600

+847

15,56016,462+902

Income taxes

4,143

5,078

+934

Net income attributable to non-controlling interests

1,967

1,384

▲582

Net income attributable to parent company shareholders

9,449

9,999

+549

Non-operating expenses

Ordinary income

Income before income taxes

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Capital investment（Unit: million yen）

By segment

By area

12,00010,000

8,000

6,000

12,00010,02010,539
1,667

2,541

202

7,933

82

2,182

798
365
1,019

2,228

8,668

8,536

2,007

827
123

1,515

98

2,150

1,418
4,742

4,000

2,000

0

5,168

2015/3
Jobbing

5,750

5,436

5,802

2017/3Chemicals

2018/3Equipment

2,405

90
38

2020/32021/3

assets for common use

7,933
5,276

6,825
4,413

8,668

4,407

8,536

3,559

8,974

3,874
4,742
1,071

4,000

2,208
2019/3

10,539

6,000

2,000

3,663

2016/3

8,000

239

2,898
6,486

10,0008,974

10,020

0

4,743

3,714

3,520

4,261

4,977

5,100

3,671

2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3
Japan

Oversea（Notes）Since it is difficult to classify capital investment in R & D by segment, it is included in common and others.

In the fiscal year ending March 2021, capital investment in the processing business decreased significantly due
to the impact of COVID-19.
From the fiscal year ending March 2022, we are planning to maintain and renew manufacturing and processing
plants, will expand research centers, etc., and will continue to make capital investment for future growth.

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Research and Development（1/2）（Unit: million yen）
2,500
2,181

2,303

2,302

2,154

2,220
2,047

2,000

1,500

1,000

500

0





2016/3 2017/3 2018/3 2019/3 2020/3 2021/3

In the fiscal year ended March 2021, R & D expenses decreased by 172 million yen from the previous
year, mainly due to the influence of COVID-19. However, we will continue to invest in R&D to develop
new fields for long-term growth.
More than 130 people work at the central research laboratory. In addition to improvements to the
corrosion prevention and tribological characteristics, we are engaged in the development oftechnology for adding a variety of properties to surfaces, including insulation, conductivity,hydrophilicity, water repellence, heat dissipation, thermal insulation properties, and among others.

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Research and Development（2/2）
Conducting R&D to expand and develop new marketsTechnology development for the realization of a sustainable society such as carbon neutral (energy saving,
resource saving, high efficiency, etc.)

Meeting needs such as environmental needs (chrome-free, phosphate-free, sludge-free, etc.）Developing technologies for next generation vehicles.

Developing technologies for new markets. (medical parts, health care, electronic parts, aerospace, etc.）In addition to rust prevention, creating diverse functions ( insulation, conductivity, hydrophilicity, antifinger print, design, etc.)nonmetallic material（ textile, glass, resin, etc.）Adhesive or joining between metal and different materials.

Functionheat radiation

Applications⇔ insulation

Heat sink, Engine parts, Roof panel material

electric insulation ⇔ conductive

Motor parts, Electromagnetic shielding material, Electrical component

adhesive ⇔ non-stickiness

Rubber-resin-metal composite material, Seal material, Laminate materialhydrophilic ⇔ water-repellent, oil repellent

Heat exchanger, Antifouling material

low friction ⇔ high friction

Power train, Clutch, Slide rail

hardening ⇔ softening

Sliding parts, Plastic working parts

stable rust layer ⇔ rust proof coating

Weathering steel, Repair of building materials

otherFingerprint-resistant steel sheet

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Consolidated balance sheet（Unit: million yen）
2020/32021/3

増減

Current assets

111,034

114,788+3,754

Fixed assets

105,739

105,421▲317

Tangible and Intangible assets

62,47658,895▲3,660Investments and other assets

40,773

44,115+3,342

216,773

220,210+3,436

Current liabilities

31,384

31,978+594

Fixed liabilities

14,441

11,563▲2,877

Total liabilities

45,82643,542▲2,283

Total net assets

170,947

176,667+5,719136,183

142,025+5,842

7,051

9,473

+2,422

27,71325,168▲2,545

216,773

220,210+3,436

66.1%

68.8%

Total assets

Shareholders' equity
Accumulated other comprehensive profit

Non-controlling interests
Total liabilities and net assets
Shareholders‘ equity ratio

Main factor of change
Cash and deposits＋6,596
Short-term investment securities▲2,109Acquisition
Depreciation＋4,742▲5,622

Securities+3,761Retirement benefit obligation ▲4,110

Current profit＋9,999Cash dividends paid
▲2,959Purchase of treasury shares ▲1,381
Valuation difference
on available-for-sale securities +3,313
Translation adjustment▲1,110※Shareholders‘ equity ratio＝（”Total net assets” – “Non-controlling interests”）／Total liabilities and net assets

 Shareholders‘ equity ratio is stable.
Copyright 2021 Nihon Parkerizing Co., Ltd.

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Consolidated cash flow
（Unit: million yen）
70,00070,00060,00060,00050,00050,000▲5,87240,00040,000▲8,732▲7,26330,00030,000▲9,171▲4,90820,00020,000438▲2,355▲6,109▲8,106

10,00010,000Cash dividends paid

▲2,704▲3,0230Purchase of treasury shares▲1,824▲1,487(10,000)

Others▲1,580▲3,595

Effect of exchange rate change on cash andcash equivalents

+109

▲241

Net increase (decrease) in cash and cash
equivalents+2,781+600

Cash and cash equivalents at beginning of
the fiscal year

53,72656,507

Cash and cash equivalents at end of the
fiscal year

56,507

57,1082020/32021/3+17,514+16,212

Profit before income taxes+15,560

16,462

Depreciation and amortization+6,516＋5,622Others▲4,561

Net cash used in investing activities
Purchase of property, plant andequipment

Net cash provided by operating activities

OthersNet cash used in financing activities(20,000)0(10,000)

2016/3 2017/3 2018/3 2019/3 2020/3 2021/3(20,000)

Cash flow from operating activities
Cash flow from investing activities
Cash flows from financing activities
Cash and cash equivalents at the end of the period
Free-cash flow

Free cash flow (“Operating cash flow”-“Cash flow from investing activities”) is positive.

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Forecast for FY2022 ended March 31, 2022
（Unit: million yen）

2021/3
ActualChange% Change

Net Sales

99,918118,000+18,081+18.1%

Operating income

10,681

15,000+4,318+40.4%

Ordinary income

14,197

17,700+3,502+24.7%

9,999

10,800

+800

+8.0%

106.82円

106.00円

Net income attributable to parent
company shareholders

The average exchange rate
(USD)



2022/3
Forecast

Sales are gradually recovering. However, we anticipate that it will take some time for the
economy to recover.

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Dividend policy and shareholder return
 Dividend policy

 Taking into consideration consolidated business results, retained earnings required for
future business development, we will determine the amount of dividends based on atarget payout ratio of 25% on a consolidated basis.
 For the fiscal year ending March 2022, we plan to pay an annual dividend of 26 yen
for the same amount as the current fiscal year.

60.00

40.0%

50.00

30.4%

40.00
30.00
20.00
10.00
0.00

18.6%

15.00
7.50
7.50

19.8%

16.50
9.00
7.50

20.2%
20.00

21.9%
23.00
2.00

30.7%

35.0%
28.3%

23.4%

22.00

10.00

11.00

11.00

10.00

10.00

11.00

30.0%
25.0%

24.00
13.00

11.00

26.00

26.00

14.00

13.00

12.00

13.00

2015/3 2016/3 2017/3 2018/3 2019/3 2020/３ 2021/３ 2022/３

20.0%
15.0%
10.0%

Year-End（Commemorative）
Year-End（Ordinary）
Interim
Payout ratio (Consolidated)

5.0%
0.0%

(予想)
(Forecast)
Copyright 2021 Nihon Parkerizing Co., Ltd.

16

第三次グループ中期経営計画の進捗状況（Unit: million yen）

S

a

l

e

A

B

C

D

2020/32021/32022/32022/3

ActualActualForecast

Mid-term
plan

C-D
Differences

119,028

99,918118,000

133,500▲15,500

Operatingincome12,601

10,681

15,00019,000▲4,000O r d i n a r y

i n c o m e

15,723

14,197

17,70022,000▲4,300 In the fiscal year ended March 2021, sales and profits decreased significantly due to COVID-19 infection. In thefiscal year ending March 2022, although business performance is gradually recovering, It is difficult to achieve
the third medium-term management plan target.

We have created a new Vision.

Change various surfaces with science

We will contribute to the creation of a sustainable society bycreating new value for resources
through surface modification of a variety of materials.
 Towards the 100th anniversary of our founding in 2028 and the future ahead, expanding existing fields anddeveloping new fields globally. Looking to the future after the end of COVID-19, in addition to strengthening
the profitability of existing businesses, we will strengthen research and development to contribute to therealization of a sustainable society, such as technological development for the realization of carbon neutrality.
Copyright 2021 Nihon Parkerizing Co., Ltd.

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■Consolidated financial highlights（Unit: million yen）

2016/32017/3

2018/3

2019/32020/32021/3109,063

109,569

114,840

129,207

119,028

99,918Operating income

15,766

16,934

17,984

17,023

12,601

10,681

Ordinary income

17,921

18,77920,75020,13015,723

14,197

Net income attributable toparent company shareholders

10,32012,22812,721

11,424

9,449

9,999

Operating profit margin

14.5%

15.5%

15.7%

13.2%

10.6%

10.7%

Sales ordinary income ratio

16.4%

17.1%

18.1%

15.6%

13.2%

14.2%

Ratio of ordinary income
to total assets

9.5%

9.7%

10.0%

9.2%

7.2%

6.5%

Return on equity（ROE）

8.9%

10.2%

9.7%

8.2%

6.7%

6.8%

Shareholders‘ equity ratio

61.5%

62.5%

62.9%

64.2%

66.1%

68.8%

Net Sales

Copyright 2021 Nihon Parkerizing Co., Ltd.

18

■Main sbsidiaries and affiliated companies (As of 31st March 2021)（China）■ Parker Surface Technologies (Shanghai) Co., Ltd.
■Parker Engineering (Shanghai) Co., Ltd.
■Kanigen (Shanghai) Trade Co., Ltd.
■Guangzhou Parkerizing Co., Ltd.
■Foshan Parker Surface Modification Co., Ltd.
■RIZHAO PARKER SURFACE TREATMENT CO.,LTD.
□Shenyang Parkerizing Co., Ltd.
□Shanghai Parkerizing Co., Ltd.
□Wuhan Parkerizing Chemical Co., Ltd.

（U.K.）■Delamin Nitriding Salts（Japan）■Kyodo Unso
■Nihon Parkerizing Co., Ltd.
■Ozeki Chemical Industry Co., Ltd.
■Parker Engineering Co., Ltd.
■Hokkaido Parkerizing Co., Ltd.
■Parker Kako Co., Ltd.
■Hamamatsu Netsushori Kogyo Co., Ltd. ■Parker Giken Kogyo Ltd.
■Paltec Test Panels Co., Ltd.
■Komatsu Parkerizing Co., Ltd.
■Million Chemicals Co., Ltd.
■Oita Parkerizing Co., Ltd.
■Japan Kanigen Co., Ltd.t（Korea）■Dae Han Parkerizing Co., Ltd.

（Belgium）■P.I of Europe NV（India）■Nihon Parkerizing (India) PVT LTD■Parker Engineering (India) PVT LTD（Thailand）■Thai Parkerizing Co., Ltd.
■PET Trading Co., Ltd.
■Parker Engineering (Thailand) Co., Ltd.
■Kanigen (Thailand) Co., Ltd.
（Indonesia）■P.T. Nusantara Parkerizing■P.T. Parker Metal Treatment Indonesia■P.T. Parker Engineering Indonesia

Copyright 2021 Nihon Parkerizing Co., Ltd.

□Parker Corporation□Parker Netsushori Kogyo Co., Ltd.
□Nagaizumi Parkerizing Co., Ltd.
□Yuugen Co., Ltd.
□Green-Techno（U.S.）■Parker Trutec Inc.
■Parker Trutec MMI Inc.
■Parker Engineering America■Delamin Nitriding Salts U.S.

（Taiwan）■Chung Jih Metal
Treatment Chemicals, Inc.
（Mexico）■Parker Trutec Mexicana S.A de C.V.
■Parker Eng. De Mexico S.A. de C.V.

（The Philippines）■Philippine Parkerizing Inc.
（Vietnam）■Vietnam Parkerizing Co., Ltd.
■Vietnam Parkerizing (Hanoi) Co., Ltd.
■Parker Processing Vietnam Co., Ltd.

（Malaysia）■Nihon Parkerizing Malaysia Sdn Bhd■□

Nihon Parkerizing and subsidiaries
Affiliated companies
19
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The forward-looking statements such as forecast of financial consolidated results
contained in this document are based on the information currently available to theCompany and certain assumptions which are regarded as legitimate. Actual results
may differ from these forecast due to various factors.
Significant factors which may affect actual results include but are not limited to;a)state of the economy b)fluctuations in exchange rates c)product competitiveness,d)regulations and e)limits of intellectual property protection.
The information in this document is not intended to solicit investment.
Please make investment decisions at your own discretion.

Copyright 2021 Nihon Parkerizing Co., Ltd.

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