Consolidated Financial Results
For the Fiscal Year Ended March 31, 2024
(Japan GAAP)May 15, 2024

Name of listed company:

Nippon Light Metal Holdings Company, Ltd.

Stock exchange listing:Tokyo Stock Exchange

Code number:

5703

URL:

https://www.nikkeikinholdings.com/

Representative:

Ichiro OKAMOTO,

Contact:

Chizu ISHIKAWA,

Phone:+81-03-6810-7160

President & Chief Executive Officer
Public Relations and IR Director, Planning &Supervision Office

Scheduled date of Ordinary General Meeting of Shareholders:June 25, 2024

Scheduled date of commencement of dividend payment:

June 26, 2024

Scheduled date of filing securities report:

June 25, 2024

Preparation of supplementary materials for financial results:

Yes

Holding of a briefing on financial results:

Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023－March 31, 2024)(1) Consolidated Operating Results(% figures show year-on-year change)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions ofMillions ofMillions ofMillions of
Fiscal year ended
%
%
%
%
yen
yen
yen
yen
March 31, 2024
523,715
1.3
18,189141.3
19,033 114.8
9,037
25.5
March 31, 2023
516,9546.2
7,539(66.0)(Note) Comprehensive income:Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

8,859 (61.4)
7,203¥18,932 million / 183.8%¥6,672 million / (66.8%)(57.0)Net profit per
share (basic)

Net profit per
share (diluted)

Return on
equity (ROE)

Ordinary profit
to total assets

Operating profit
to net sales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2024

145.91

－

4.2

3.6

3.5

March 31, 2023

116.33

3.5－(Reference) Share of loss (profit) of entities accounted for using equity method:
Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:

1.7

1.5

¥934 million¥1,989 million

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen
543,193

Millions of yen
238,095

%
40.7

Yen
3,572.06

526,201

220,758

39.0

3,318.17

As of March 31, 2024
As of March 31, 2023
(Reference)
Shareholders’ equity:

Equity ratio

As of March 31, 2024:
As of March 31, 2023:

Net assets per share¥221,258 million¥205,475 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end ofyear

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2024

38,041(23,931)(11,049)

35,087

March 31, 2023

695

(15,123)85

31,263

2. Dividends

Annual dividends per share

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
(forecast)

Ratio of
Payoutdividends toratio
net assets(consolidated) (consolidated)

Total
dividends(annual)End offirstquarter

End ofsecondquarter

End ofthird
quarterYearend

Total

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

―

40.00

―

10.00

50.00

3,096

43.0

1.5

―

10.00

―

40.00

50.00

3,097

34.3

1.5

―

20.00

―

50.00

70.00

33.4

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025
(April 1, 2024–March 31, 2025)(% figures show year-on-year change)
Profit attributableNet
Net sales
Operating profit
Ordinary profit
to owners of
profit per
parentshare
Six months ending
September 30, 2024
Fiscal year ending
March 31, 2025

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

260,000

3.8

5,500

(3.2)

5,000

(25.3)

2,500

16.6

40.36

560,000

6.9

21,00015.5

20,000

5.1

13,00043.9

209.89

*Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries affecting the scope of consolidation): None
Newly added: ― (Company name: ― )Excluded: ― (Company name: ― )(2) Changes in accounting policies, changes in accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards: None(ii) Changes in accounting policies other than item (i) above: None(iii) Changes in accounting estimates: Yes(iv) Restatement: None
(3) Number of shares outstanding (common stock)(i) Number of shares outstanding at end of period (including treasury stock)
As of March 31, 2024
61,993,750 shares
As of March 31, 2023
61,993,750 shares(ii) Number of treasury stock at end of period
As of March 31, 2024
52,490 shares
As of March 31, 2023
69,643 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2024
61,937,360 sharesFiscal year ended March 31, 2023
61,917,662 shares* The consolidated financial results are not subject to auditing by a certified public accountant or an audit firm.
* Explanations concerning the appropriate use of financial forecasts and other special notes(Note of caution concerning forward-looking statements)• The forward-looking statements such as result forecasts included in this document are based on the information
available to the Company at the time of the announcement and on certain assumptions considered reasonable, andthe Company makes no representations as to their achievability. Actual results may differ materially from theforecast depending on a range of factors. For the conditions on which the financial forecasts are based and notes ofcaution concerning forward-looking statements, etc., please refer to “1. Overview of operating results (1) Overview
of operating results in fiscal year under review” on p.2 of the attached documents.
* This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Page[Attached documents]
Index
1.

Overview of operating results ........................................................................................................................2(1) Overview of operating results in fiscal year under review ............................................................................2(2) Overview of financial position in current fiscal year ....................................................................................6(3) Basic policy regarding profit distribution and dividends for the fiscal year ended March 31, 2024 and thefiscal year ending March 31, 2025 ................................................................................................................8
Management policies .....................................................................................................................................92.

(1)Company’s basic policy on management .......................................................................................................9(2)Company’s medium- and long-term management strategy .............................................................................9(3)Management indicators ..................................................................................................................................10
3.

Basic approach to selection of accounting standards....................................................................................10

4.

Consolidated Financial Statements and Important Notes .............................................................................11(1)Consolidated balance sheets .........................................................................................................................11(2)Consolidated statements of income and consolidated statements of comprehensive income ......................13(3)Consolidated statement of changes in shareholders' equity ..........................................................................15(4)Consolidated statements of cash flows .........................................................................................................17(5)Notes regarding the consolidated financial statements ................................................................................18(Notes on premise of going concern) ........................................................................................................18(Changes in accounting estimates).............................................................................................................18(Segment information, etc.) .......................................................................................................................19(Information per share) ..............................................................................................................................23(Significant subsequent events) .................................................................................................................23

1

1. Overview of operating results(1) Overview of operating results in fiscal year under review(i) Operating results in fiscal year under review

During the period under review, the global economy showed signs of recovery in some regions, such as the recoveryof the U.S. economy centered on solid consumer spending. However, the situation remained unpredictable due to themonetary tightening around the world, an economic slowdown affected by China’s stagnant real estate market,
Russia’s prolonged invasion of Ukraine, as well as heightened geopolitical risks in the Middle East region, among
other factors. In Japan, there is a risk that the disappointing performance of overseas economies could push down
Japan’s economy, which include the monetary tightening around the world and uncertain outlook for the Chinese
economy, as well as financial and capital market fluctuations and the economic impact of the 2024 Noto Peninsula
earthquake. While these conditions call for ongoing vigilance, the economy generally showed signs of gradual
recovery, including a recovery in corporate earnings, as evidenced by the Nikkei Stock Average reaching a record
high, and a pickup in consumer spending due to improved employment and income conditions.
In the aluminum industry, although demand for the automobile sector rose compared to the previous fiscal year, total
domestic demand for aluminum products fell short of the previous fiscal year’s level for the second year in a row. In
addition, raw material and fuel prices, including aluminum ingot used as a raw material, were relatively stablecompared to the previous year, but remained at high levels.
In May of last year, the Group formulated the Mid-term Management Plan (fiscal years 2023-2025) based on the basic
policies of "Initiatives for new Team Nippon Light Metal" and "Provide products and businesses that contribute to thecreation of social value" in order to respond flexibly to the increasingly uncertain business environment. In the fiscal
year under review, the first year of the plan, we are accelerating efforts to meet customer needs throughout the supply
chain lifecycle with diverse products and businesses that help solve social issues.
Specifically, in light of customers' growing demand for CO₂ reduction, we are the first in the truck body industry to
manufacture the Green Body from recycled aluminum by horizontally recycling heavy-duty wing roofs, thereby
successfully reducing CO₂ emissions by about 8 tons per truck (i.e., CO₂ emissions reduced by about 80% in the
production process of aluminum materials for conventional heavy-duty wing roofs). Furthermore, we constructed aplant to increase production of non-fluorine heat-insulating non-combustible panels for clean rooms, in order to meetboth the increasing demand for clean rooms due to the growth of the semiconductor industry in Japan and reductionof CO₂ emissions.
We also made our approach toward carbon neutrality by setting the Group’s carbon neutrality strategy to reduce CO₂
emissions by 30% (Scopes 1, 2, and 3) by fiscal 2030 from fiscal 2013 levels, in an effort to accommodate the growing
expectation for aluminum toward a decarbonized society, and we took step to formulate the Group’s policies andstrategies aiming at establishing a closed-loop supply chain, led by the Green Growth Strategy Office launched in
April of last year.
In addition, Nikkeikin Aluminum for Mobility Company, Ltd., which was formed in October of last year to integrate
the Group’s automotive parts business to allocate resources in an optimal way and create Group synergies, worked to
expand sales of new products, and we also made steady efforts to stabilize operations at the new plant in the U.S.
In regards to initiatives to prevent the reoccurrence of inappropriate behavior regarding issues related to quality
identified in our Group companies in 2021, which were formulated and announced in March of last year, the BusinessTransformation Office, newly established in April, played a leading role in rebuilding the Group governance system,
strengthening the internal control functions, and the Group companies made concerted efforts to reform the corporate
culture to make the Group truly sustainable.
Financial results in the fiscal year under review were as follows.
Despite the impact of semiconductor-related demand corrections and the slowdown in automobile-related demand in
China, net sales were higher than in the previous fiscal year, thanks to strong performance in the panel system division
and a recovery in sales of products for truck bodies. From a profitability standpoint, despite the impact of the timerequired to stabilize operations at the new U.S. plant in the extrusion products division, operating profit, ordinary
profit, and profit attributable to owners of parent were all higher than in the previous fiscal year, reflecting a strong
performance in the panel system division and the expanded effect of sales price revisions in the truck body business.
For the Amehata Dam owned by our subsidiary Nippon Light Metal Company, Ltd., it was deemed necessary to
implement additional processes for sediment removal in accordance with the progress of the Amehata Dam sedimentcontrol master plan submitted to the Ministry of Land, Infrastructure, Transport and Tourism in April 2020, among
others, and accordingly, the expenses for environmental measures are recorded as extraordinary losses.
2

Consolidated Results of Operations(Unit: million yen)
Current consolidated

Previous consolidated

fiscal year (ended on
March 31, 2024)

fiscal year (ended on
March 31, 2023)

ChangeYoY

Net sales

523,715

516,954

6,761

1.3%

Operating profit

18,1897,539

10,650141.3%

Ordinary profit

19,033

8,859

10,174114.8%

Profit attributable to ownersof parent

9,037

7,203

1,834

25.5%

An overview of each business segment in the current fiscal year is provided below.
<Aluminum ingot and chemicals>
In the aluminum chemical division, net sales were lower than in the previous fiscal year due to the significant impact
of decreased sales of products for refractories and ceramics among the mainstay aluminum hydroxide and aluminarelated products. On the profitability side, despite the impact of a decline in sales, operating profit was in line withthe previous fiscal year due to the effect of sales price revisions.
In the ingot division, the sales volume of the mainstay secondary alloy ingot for automobiles increased due to arecovery in automobile production in Japan, and overseas sales remained strong in the U.S. and Thailand. As a result,although net sales were lower than in the previous fiscal year due to a decline in sales prices reflecting the aluminum
ingot market conditions, operating profit exceeded the previous year’s level.
As a result of the above, net sales in the aluminum ingot and chemicals segment decreased 3.5% over the previous
fiscal year to 150,462 million yen, but operating profit increased 5.5% over the previous fiscal year to 10,766 million
yen.
<Aluminum sheet and extrusions>
In the sheet product division, sales of thick gauge plate for semiconductor manufacturing equipment continued to besluggish and were also affected by a decline in sales prices reflecting the aluminum ingot market conditions. As aresult, net sales were below the previous fiscal year’s level. On the profit side, despite an increase in outsourcing andother expenses, operating profit was higher than in the previous fiscal year due to the effect of revisions to sales prices.
In the extrusion product division, although recovery in sales of products for truck bodies and domestic automobiles isongoing, net sales fell over the previous fiscal year due to sluggish sales of products for semiconductor manufacturing
equipment and a slowdown in sales of automobile-related products in China, among other factors. On the profitability
side, operating profit decreased over the previous fiscal year due to the sales impact and the time required to stabilize
mass-production operations at the new plant in the U.S.
With the aim of responding to changes in the automotive-related market environment and improving competitiveness,
the Group’s automotive parts business (comprising the automotive-related business of the division as well as the heatexchanger products and industrial parts businesses) was integrated to form Nikkeikin Aluminum for Mobility
Company, Ltd. on October 1, 2023.
As a result of the above, net sales in the aluminum sheet and extrusions segment decreased 9.2% over the previous
fiscal year to 97,533 million yen, and operating loss amounted to 573 million yen, a negative difference of 32 million
yen.
<Fabricated products and others>
Results in the key sectors are described below.
In the transport-related division, net sales in the truck body business exceeded the previous fiscal year’s level thanks
to a recovery in sales resulting from increased production amid the normalization of truck chassis supply. On the
profit side, as a result of the recovery in sales as well as efforts to revise sales prices, increase productivity, and reduce
fixed costs, and other measures, operating loss improved significantly compared with the previous fiscal year to alevel that is projected to return to profitability.
In other transportation-related division, net sales in the heat exchanger products business were higher than in the3

previous fiscal year thanks to solid sales of capacitors for air conditioners to the automobile market in Japan. On the
profitability side, operating loss improved from the previous fiscal year, partly because of price revision of capacitors
for air conditioners. In the industrial parts business, despite a slowdown in demand for the Chinese market, sales inthe domestic market were strong due to a recovery in automobile production as well as the introduction of new brakerelated products. As a result, both net sales and operating profit increased over the previous fiscal year. Effective
October 1, 2023, the heat exchanger products and industrial parts businesses are now under the Nikkeikin Aluminumfor Mobility Company, Ltd., which was formed as a result of the integration of Group’s automotive parts business.
In the electronic material division, demand in the electronic component industry, starting with semiconductors,
continued to fall, resulting in lower sales of anodized foil for electric capacitors, and stubbornly high chemical andother material prices also had an influence. As a result, both net sales and operating profit were lower than in theprevious fiscal year.
In the panel system division, sales of large projects for low-temperature distribution warehouses came in line with theprevious year, but sales of small projects for stores were solid in the freezing and refrigeration field. Strong demandfor clean rooms for semiconductor-related manufacturers supported increased sales in the clean room field. As a result,net sales in the division as a whole increased over the previous fiscal year. On the profit side, operating profit surpassed
the previous fiscal year's level thanks to increased sales of large projects for clean rooms, despite the impact of material
price increases and other factors.
In the landscape engineering division, sales of scaffolding products used for inspections for roads and bridges grew,
but demand for aluminium guard fences declined. As a result, net sales were in line with the previous fiscal year in
the division overall. On the profit side, despite the impact of higher construction material prices, operating profit
increased over the previous fiscal year, partly due to a focus on sales of high-value-added products.
In the carbon products division, sales of mainstay carbon blocks for the steel industry decreased, but sales of cathodeblocks for smelting aluminum increased, and the weak yen also had a boosting effect. As a result, both net sales andoperating profit increased over the previous fiscal year.
As a result of the above, net sales in the fabricated products and others segment increased 11.3% to 170,426 million
yen over the previous fiscal year, and operating profit increased 6,506 million yen, thanks to improved earnings in thetransportation-related division, to 6,565 million yen.
<Aluminum foil, powder and paste>
In the aluminum foil division, sales of foils for automobile lithium-ion battery exteriors remained at the same level asin the previous fiscal year, and sales of processed foil for medical product packaging increased due to sales pricerevisions, and sales to overseas markets were solid. As a result, both net sales and operating profit for the division
overall exceeded the previous fiscal year’s levels.
In the powder and paste division, semiconductor-related demand for powder products for heat dissipation, such asaluminum powder for electronic materials and aluminum nitride, showed a recovery trend from the second half of the
fiscal year. In addition, sales of paste products for mainstay automobile paints increased mainly in overseas markets
as a result of the recovery in automobile production. As a result, both net sales and operating profit for the division
overall exceeded the previous fiscal year’s levels.
In the daily necessities division, in consumer products, sales of house-care products increased, with sales price revisionof aluminum foil having a positive effect. In addition, sales of packaging products rose thanks to strong demand forfrozen food products and sales price revisions. As a result, both net sales and operating profit for the division overall
exceeded the previous fiscal year’s levels.
As a result of the above, net sales in the aluminum foil, powder and paste segment increased 4.9% over the previous
fiscal year to 105,294 million yen, and operating profit increased 271.1% to 5,634 million yen.

4

(ii) Earnings forecasts for the next fiscal year (year ending on March 31, 2025)

Although we expect the global economy to continue making a gradual recovery, it remains difficult to makepredictions due to factors such as monetary tightening measures around the world, the stagnation of the Chinese
economy, growing geopolitical risks including the prolonged situation in Ukraine as well as conditions in the Middle
East, and the outcome of the U.S. presidential election. In this environment, we have estimated consolidated earnings
based on the information and projections available at this point.
The Group’s consolidated earnings forecasts and earnings forecasts by segment for the fiscal year ending in March2025 are shown below.
Consolidated earnings forecasts(Unit: hundred million yen)
Fiscal year ended
March 31, 2024
– Actual (B)Forecast for
fiscal year ending
March 31, 2025(A)
Net sales

Change
(A-B)

5,600

5,237

363

6.9％

Operating profit

210

182

28

15.5％

Ordinary profit

200

190

10

5.1％

Profit attributable toowners of parent

130

90

40

43.9％

Earnings forecasts by segment

Segments
Aluminum ingot andchemicals
Aluminum sheet andextrusions
Fabricated products andothers
Aluminum foil, powder
and paste
Elimination andcompany-wide
Total(Unit: hundred million yen)
Net sales(over previous fiscal year)

Operating profit(over previous fiscal year)

1,600

95

6.3%

110

2

2.2%

1,170

195

20.0%

10

16

—

1,750

46

2.7%

80

14

21.9%

1,080

27

2.6%

50

(6)

(11.3%)

－

－

－

(40)

2

—

5,600

363

6.9%

210

28

15.5%

Note: Earnings forecasts are calculated based on information available at this point and may contain risks anduncertainties. Actual earnings results could differ significantly from forecasts for various reasons. The key
factors that could affect earnings are economic conditions in the Company and Group companies’ businessareas, demand fluctuations, and foreign exchange fluctuations, among other factors.

5(2) Overview of financial position in current fiscal year
The Group focuses on reducing interest-bearing debt and augmenting its shareholders’ equity to improve its financial
position, while also implementing various measures in its medium-term management plan aimed at improving thehealth and solidity of its management structure.
As of the end of the consolidated fiscal year under review, total assets increased by 16,992 million yen compared tothe end of the previous consolidated fiscal year to 543,193 million yen, due to an increase in trade receivables as theyear-end fell on a holiday and a higher market value of investment securities resulting from a rise in stock prices,among other factors. Liabilities decreased by 345 million yen compared to the end of the previous consolidated fiscal
year to 305,098 million yen, due to a decrease in repayments of long-term borrowings and other factors. Net assets
increased by 17,337 million yen compared to the end of the previous consolidated fiscal year to 238,095 million yen,
due to an increase in retained earnings from the recording of profit attributable to owners of the parent and an increasein foreign currency translation adjustment in response to the depreciating yen and other factors. The equity ratio rosefrom 39.0% at the end of the previous consolidated fiscal year to 40.7%.
Cash flows from operating activities
Net cash provided by operating activities in the consolidated fiscal year under review amounted to 38,041 million
yen. This was because non-cash profit/loss items such as profit before income taxes and depreciation more than offset
cash outflows, including income taxes paid. Net cash provided by operating activities rose 37,346 million yen
compared to the previous consolidated fiscal year, which was largely due to an increase in profit before income taxes
and improvement in working capital, which had increased significantly in the previous consolidated fiscal year.
Cash flows from investing activities
Net cash used in investing activities in the consolidated fiscal year under review amounted to 23,931 million yen,primarily due to purchase of property, plant and equipment. Net cash used in investing activities was up 8,808 million
yen compared to the previous consolidated fiscal year, primarily due to an increase in purchase of property, plant andequipment.
Cash flows from financing activities
Net cash used in financing activities in the consolidated fiscal year under review amounted to 11,049 million yen.
This was primarily due to repayments of long-term borrowings. Financing activities provided 85 million yen in cashin the previous consolidated fiscal year, but this consolidated fiscal year financing activities used 11,049 million yen,which was primarily due to a decrease in proceeds from short-term borrowings.
As a result, cash and cash equivalents on a consolidated basis were up 3,824 million yen (12.2%) compared to theend of the previous consolidated fiscal year, to 35,087 million yen.
Reference: Fluctuations in indicators related to cash flow

FY2020

FY2021

FY2022

FY2023Equity ratio

37.6％

38.1％

39.0％

40.7％

Mark-to-market capitalratio (%)

27.0％

19.9％

17.2％

20.7％

Cash flow/interestbearing debt ratio

3.5

104.5

235.4

4.1

Interest coverage ratio

39.6

1.3

0.5

28.0

Notes: Equity ratio: Shareholders’ equity/Total assets
Mark-to-market capital ratio: Total market capitalization/Total assets
Cash flow/interest-bearing debt ratio: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest payments* Indicators are calculated using financial data on a consolidated basis.
* Total market capitalization was calculated by multiplying the stock price at closing at the end of the
6fiscal year by the number of outstanding shares (excluding treasury shares) at year-end.
* Cash flow from operating activities in the consolidated cash flow statement is used for the operating
cash flow figure. Interest-bearing debt represents all interest-bearing debt recorded on the consolidatedbalance sheet for which interest is paid. In addition, the interest payment recorded in the consolidated
cash flow statement is the figure used for interest payments.

7(3) Basic policy regarding profit distribution and dividends for the fiscal year ended March 31, 2024, and the fiscal
year ending March 31, 2025
The Company’s basic policy on profit distribution is “to return profits to its shareholders by comprehensively taking
into consideration its consolidated financial results and other factors from medium- and long-term perspectives while
reinforcing its financial strength and management foundation.”
The Group decides on dividend amounts using a total dividend payout ratio, including the acquisition of treasury
stock, of 30% or more as its indicator for profit returns.
The Group plans to pay year-end dividends of 40 yen per share for the fiscal year ended March 31, 2024.
The Group will decide on dividend amounts for the fiscal year ending March 31, 2025, using a total dividend payout
ratio, including the acquisition of treasury stock, of 30% or more. The Group plans to pay interim dividends of 20 yen
and year-end dividends of 50 yen, for an annual dividend of 70 yen. (The dividend payout ratio based on the
consolidated earnings forecast at this point is 33.4%.)8

2. Management policies(1) Company’s basic policy on management
The Company strives to raise corporate value by utilizing the Group’s wide-ranging aluminum-related knowledge
and diverse businesses, which are its strengths, to the maximum extent, and also endeavors to resolve various social
issues through its business activities to contribute to the realization of a sustainable society. The NLM GroupManagement Policy, which defines the Company’s corporate philosophy and objectives, is as follows.
NLM Group Management Policy◆ Corporate Philosophy

Contribute to improving people’s quality of life and environmental protection by continuing tocreate business, focused on aluminum.

◆ Basic Policies

•
•
•
•
•

The Group will create healthy, safe workplaces, and achieve zero-accident operations.
The Group will continuously provide diverse value to customers by deepening the level ofcollaboration and coordination within and outside the Group.
The Group will work actively to achieve carbon neutrality, to help create a sustainable
society.
The Group will engage in fair and honest business operations, with respect for human rights
and an emphasis on ethics.
The Group will respect diverse values and develop human resources from a long-term global
perspective.
(Revised: May 16, 2022)(2) Company’s medium- and long-term management strategy
Looking forward, the global economy is expected to continue its gradual recovery, but we anticipate that unpredictableconditions will persist, given the monetary tightening around the world, economic stagnation in China, heightened
geopolitical risks including the prolonged turmoil in Ukraine and the situation in the Middle East, and the course of
the U.S. presidential election, among other factors.
In this situation, we consider it necessary for the Group to achieve sustainable growth that, while closely monitoring
the business environment surrounding the Group, we strengthen sustainable efforts to resolve issues, including
improvements in profitability as well as reforms in corporate culture and the utilization of human resources, that theGroup must overcome, and continuously pursue management and structural reforms as we continue to take on thechallenges for value creation by addressing both customer needs and social issues, thereby transforming ourselves
into a new NLM Group.
With this in mind, the Group aims to reform its organizational structure to accelerate the creation of new value by
working together as Team NLM.
That is, comprehensively taking into account the markets and product characteristics and other factors to which eachgroup company belongs, we will group our businesses and integrate operations with market sectors in close proximity
to each other, in an effort to strengthen group collaboration and improve capital efficiency. In addition, we will review
our organization with a view to strengthening group governance. These organizational reforms will allow us toembody a new NLM Group beyond the conventional format, accelerate the creation of new products and businesses
by appropriately allocating management resources, reform operations, strengthen group governance, as well as
formulate and implement growth strategies from a broader, longer-term perspective than in the past, thereby
maximizing Group corporate value.
In addition, we aim to strengthen our corporate governance system through a review of the number and compositionof the Board of Directors and other measures that place greater emphasis on its position as a “supervisory body
focused on formulating the group’s strategies to maximize corporate value.”
Our efforts toward carbon neutrality will also go beyond addressing the risk aspect, and, in order to meet the growing
demand for aluminum to realize a decarbonized society, we intend to develop a roadmap for a decarbonization
strategy, and contribute to the creation of social value and increase corporate value.
9In addition to above, we will promote DX to improve operational efficiency and productivity, and take measures,
including aggressive investment in growth areas with an eye to the future, thereby working as one group to achieve
the goals of the Mid-term Management Plan. At the same time, we will lay the foundation for a new NLM Group
with a robust earnings structure by steadily implementing management reforms.
(3) Management indicators
We aim to develop a structure which enables us to secure stable ordinary profit exceeding 30.0 billion yen, to enable
the sustainable growth of the NLM Group. During the 2023 Mid-term Plan, we will create value through the growthstrategies of the individual business segments. At the same time, we will build a revenue base that is less susceptible
to the external environment by addressing the Group’s issues.
(Unit: hundred million yen)
Fiscal year ended
March 31, 2023
(actual)Fiscal year ended
March 31, 2024
(actual)

5,170
75
89
72
3.2

5,237
182
190
90
6.0

Net sales
Operating profit
Ordinary profit
ProfitROCE(%)

Fiscal year
endingMarch 31, 2025
(forecast)
5,600
210
200
130
6.3

Fiscal year ending
March 31, 2026
(2023 Mediumterm Plan
Objectives)
5,300
300
300
200
10.3

The Group pays dividends in line with the basic policy regarding profit distribution outlined on page 6 of thesematerials.

FY2023

Dividends

Interimactual10 yenYear-endplan
40 yenFY2024
Interim
forecast
20 yenYear-end
forecast
50 yenFY2025, final year of2023 Medium-term
Plan
Annual reference
figure100 yen

3. Basic approach to selection of accounting standards
The Group will prepare its consolidated financial statements based on Japanese standards in the near-term considering
comparability between periods in consolidated financial statements and comparability between companies.
The Group will respond appropriately to the adoption of international accounting standards, taking into account conditionsin Japan and overseas.

10

4. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles,net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

11

As of March 31, 2024

31,30535,206

116,802120,408

33,90736,66944,576
20,71529,332
16,062(366)
292,333

42,251
23,26429,29015,180(286)
301,982

163,640(104,801)
58,839311,692(264,204)

168,661(109,582)
59,079319,135(273,081)

47,48846,05438,812(32,939)
5,873
55,046
7,003
174,249

40,632(34,899)
5,733
55,66912,102
178,637

1,771
10,392
12,163

1,461
10,512
11,97333,546
8,392
6,071
(553)
47,456
233,868
526,201

38,177
6,386
6,582
(544)
50,601
241,211543,193(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Provision for environmental measures
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

12

As of March 31, 2024

68,53980,29012,867
1,025－
33,758
196,479

73,54686,228
6,580
4,679
8,428
38,567218,028

801
69,612
18,571
12,693
7,287
108,964
305,443

908
62,375
16,932－
6,855
87,070305,098

46,52519,087130,938(95)
196,455

46,52519,031
138,736(74)
204,218

3,535

6,161

(39)
145
5,826
(447)

38
145
9,121
1,575

9,020

17,04015,283
220,758
526,201

16,837238,095
543,193

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2023

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Foreign exchange gains
Rental income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of non-current assets
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on change in equity
Total extraordinary income
Extraordinary losses
Expense for environmental measures
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controllinginterests
Profit attributable to owners of parent

13

Fiscal year ended
March 31, 2024

516,954440,024
76,93069,391
7,539

523,715435,10788,60870,41918,189

115
309

164
360

1,989

934

1,148
603
2,794
6,958

1,210
630
2,034
5,332

1,288
334
670
3,346
5,638
8,859

1,346
522
686
1,934
4,488
19,033

1,883
1,883

－
－

－
－
－
10,742
2,650
2,441
5,091
5,651

1,796
762
2,558
16,475
5,622
710
6,332
10,143(1,552)

1,106

7,203

9,037

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2023

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

14

Fiscal year ended
March 31, 2024
5,651

10,143

786

2,666

(226)
(292)

78
3,274

77

2,099

676

672

1,021
6,672

8,789
18,932

8,101

17,057(1,429)1,875

(3) Consolidated Statement of changes in shareholders' equity
Fiscal year ended March 31, 2023

(Millions of yen)
Shareholders' equity

Share capital
Balance at beginning of
periodCapital surplus

46,525Retained earnings

Treasury shares

Total shareholders'equity129,465(130)

194,967

19,107

Changes during period
Dividends of surplus(5,263)(5,263)

Profit attributable toowners of parent

7,203

7,203

Purchase of treasury
shares
Disposal of treasury shares

3

Change in scope of
consolidation
Capital increase of
consolidated subsidiaries
Tax effect adjustment onchange in equity of priorperiod

(467)

(12)

(12)

30

33

17

(450)
－

(23)

(23)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

－

(20)

1,473

35

1,488

46,52519,087130,938(95)

196,455

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities
2,821

Deferred
gains orlosses onhedges186

Revaluation reserve
for land145

Total
Foreign
Remeasurem accumulat
ents ofcurrency
ed otherdefinedtranslation
comprehenadjustment benefit plans siveincome
5,555

(585)

8,122

Noncontrollinginterests

Total net
assets17,818220,907

Changes during period
Dividends of surplus(5,263)

Profit attributable toowners of parent

7,203

Purchase of treasury
shares(12)

Disposal of treasury shares

33

Change in scope of
consolidation
Capital increase of
consolidated subsidiaries
Tax effect adjustment onchange in equity of priorperiod

(450)
－
(23)

Net changes in items otherthan shareholders' equity

714

(225)

－

271

138

898

(2,535)(1,637)

Total changes during period

714

(225)

－

271

138

898

(2,535

(149)

3,535

(39)

145

5,826

(447)

9,020

15,283

220,758

Balance at end of period

15

Fiscal year ended March 31, 2024

(Millions of yen)
Shareholders' equity

Share capital
Balance at beginning of
periodCapital surplus

46,525Retained earnings

Treasury shares

Total shareholders'equity130,938(95)

196,455

19,087

Changes during period
Dividends of surplus(1,239)(1,239)Profit attributable toowners of parent

9,037

9,037

Purchase of treasury
shares
Disposal of treasury shares

1

Change in scope of
consolidation
Capital increase of
consolidated subsidiaries
Tax effect adjustment onchange in equity of priorperiod

(13)

(13)

34

35
－

(80)

(80)

23

23

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

－

(56)

7,798

21

7,763

46,52519,031

138,736(74)

204,218

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities
3,535

Deferred
gains orlosses onhedges(39)

Revaluation reserve
for land145

Total
Foreign
Remeasurem accumulat
ents ofcurrency
ed otherdefinedtranslation
comprehenadjustment benefit plans siveincome
5,826

(447)

9,020

Noncontrollinginterests

Total net
assets15,283

220,758

Changes during period
Dividends of surplus(1,239)Profit attributable toowners of parent

9,037

Purchase of treasury
shares(13)

Disposal of treasury shares

35

Change in scope of
consolidation
Capital increase of
consolidated subsidiaries
Tax effect adjustment onchange in equity of priorperiod－(80)
23

Net changes in items otherthan shareholders' equity

2,626

77

－

3,295

2,022

8,020

1,554

9,574

Total changes during period

2,626

77

－

3,295

2,022

8,020

1,554

17,337

Balance at end of period

6,161

38

145

9,121

1,575

17,04016,837238,095

16

(4) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on change in equity
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for environmental measures
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

17

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

10,742
19,732691(1,883)－(23)249(5,560)(424)
1,288(1,989)(5,916)(4,187)(2,197)(203)
10,320587(1,296)(8,916)695

16,475
20,525
479
－
762
(97)
524
(4,265)
(524)
1,346
(934)
(4,884)
1,286
4,202
4,344
39,239939(1,360)(777)
38,041(16,515)233(1,893)
3,409(357)(15,123)(22,040)120(1,889)520(642)(23,931)

13,363
6,689(12,773)(5,255)(716)(1,223)85
461(13,882)
45,14531,2635,272
1,180(14,933)(1,237)(553)(778)(11,049)763
3,824
31,26335,087

(5) Notes regarding the consolidated financial statements(Notes on premise of going concern)
Not applicable(Changes in accounting estimates)(Provision for environmental measures)
The Group sets out realistic and feasible plans (i.e. removal methods and destinations) to remove the amount of
sediment as specified in the Amehata Dam sediment control master plan. In addition, the Group makes a reasonableestimate of costs for sediment removal, construction of in-river routes used to transport the sediment and site
preparation work if the work is performed at the removal destination, as well as other incidental costs. These costs
are recorded as “provision for environmental measures” in the consolidated balance sheets.
During the consolidated fiscal year under review, it was determined necessary to implement additional processes for
sediment removal in accordance with the progress of the Amehata Dam sediment control master plan, among others.
Accordingly, we have revised the estimate for the provision for environmental measures. As a result, we recorded an
extraordinary loss of 1,796 million yen as an expense for environmental measures, resulting in a decrease of the sameamount in profit before income taxes in the consolidated fiscal year under review.

18

(Segment information, etc.)
a. Segment information
1. Summary of reportable segments
The Group’s reportable segments are those units for which discrete financial information is available and that areperiodically evaluated so that the Board of Directors can decide on the allocation of management resources andassess performance.
The Group primarily carries out business related to the four areas of aluminum ingot and chemicals, aluminum
sheet and extrusions, fabricated products and other, and aluminum foil, powder and paste; these products cover awide range of areas related to aluminum.
The aluminum ingot and chemicals segment sells aluminum, aluminum hydroxide, various chemicals andaluminum ingot and alloys. The aluminum sheet and extrusions segment sells aluminum sheet and aluminum
extruded products. The fabricated products and others segment sells transport-related products, and aluminum
fabricated products such as freezer and refrigeration panels and electronic materials. The aluminum foil, powder
and paste segment sells foil and powder products.
2. Method of calculating net sales, profit (loss), assets and other items by reportable segment
The accounting methods for reported business segments are generally the same as those for statements in the “Basisof Presenting the Consolidated Financial Statements.” Profit by reportable segment is based on operating profit.
Intersegment sales and transfers are based on actual market prices.

19

3. Information on net sales, profit (loss), assets and other items by reporting segment
The Fiscal Year Ended March 31, 2023 (April 1, 2022, to March 31, 2023)(Millions of yen)

Reporting segments
Aluminum Aluminum Fabricated Aluminum
ingot andsheet and products and foil, powder
chemicals extrusions
othersand paste

Total

AdjustmentsNote 1

Consolidated
profit/loss
postedNote2

Net sales
Net sales to external
155,981
107,399
153,167
100,407516,954
516,954－
customers
Intersegment sales
58,58925,99817,567388
102,542(102,542)－
or transfers
214,570
133,397
170,734
100,795
619,496(102,542)
516,954
Total
10,201
(541)
59
1,518
11,237(3,698)
7,539
Segment profit (loss)
161,283
120,261
168,806
108,437
558,787(32,586)
526,201
Segment assets
Other items
4,468
5,171
4,816
4,835
19,290442
19,732
Depreciation
Amortization of
444
247
691
691
－
－
－
goodwill
－
－
－
－
－
－
－
Impairment
Investment in entities
4,601
3,198
3,935
6,552
18,286
18,286－accounted for using
equity method
Increases in property,
4,582
5,160
5,046
3,273
18,061
192
18,253plant and equipment,
and intangible assets
Notes:
1. The adjustments are shown below.
(1) The 3,698-million-yen negative adjustment to segment profit represents corporate expenses. The
adjustment mainly comprises expenses related to General Affairs, HR, Accounting, and other head officeadministration departments of the Company and Nippon Light Metal Company, Ltd.
(2) The 32,586-million-yen negative adjustment to segment profit represents 51,938 million yen in theelimination of intersegment assets and 19,352 million yen in corporate assets that are not attributable toreportable segments. Corporate assets primarily refer to excess funds (cash and securities) and assets related
to administration departments of the Company and Nippon Light Metal Company, Ltd.
(3) Adjustment of 442 million yen in depreciation represents amortization of corporate assets that are not
attributed to a specific segment.
(4) The 192-million-yen adjustment in increase in property, plant and equipment and intangible assets mainly
consists of an increase in corporate assets that are not attributed to a specific segment.
2. Segment profit is adjusted with operating profit on the consolidated statements of income.

20

The Fiscal Year Ended March 31, 2024 (April 1, 2023, to March 31, 2024)
Reporting segments
Aluminum Aluminum Fabricated Aluminum
ingot andsheet and products and foil, powder
chemicals extrusions
othersand paste(Millions of yen)

Total

AdjustmentsNote 1

Consolidated
profit/loss
postedNote 2

Net sales
Net sales to external
150,462
97,533
170,426
105,294
523,715
523,715－
customers
Intersegment sales
51,93628,45318,074346
98,809(98,809)－
or transfers
202,398
125,986
188,500
105,640
622,524(98,809)523,715
Total
10,766
(573)
6,565
5,634
22,392(4,203)18,189Segment profit (loss)
168,757
118,046
183,323
114,674
584,800(41,607)543,193
Segment assets
Other items
4,734
5,617
5,008
4,706
20,065460
20,525
Depreciation
Amortization of
223
256
479
479
－
－
－
goodwill
534
65
163
762
762
－
－
Impairment
Investment in entities
5,092
2,958
4,383
6,772
19,205
19,205－accounted for using
equity method
Increases in property,
6,945
5,672
7,237
3,837
23,691
209
23,900plant and equipment,
and intangible assets
Notes:
1. The adjustments are shown below.
(1) The 4,203-million-yen negative adjustment to segment profit represents corporate expenses. The
adjustment mainly comprises expenses related to General Affairs, HR, Accounting, and other head officeadministration departments of the Company and Nippon Light Metal Company, Ltd.
(2) The 41,607-million-yen negative adjustment to segment profit represents 60,952 million yen in theelimination of intersegment assets and 19,345 million yen in corporate assets that are not attributable toreportable segments. Corporate assets primarily refer to excess funds (cash and securities) and assets related
to administration departments of the Company and Nippon Light Metal Company, Ltd.
(3) Adjustment of 460 million yen in depreciation represents amortization of corporate assets that are not
attributed to a specific segment.
(4) The 209-million-yen adjustment in increase in property, plant and equipment and intangible assets mainly
consists of an increase in corporate assets that are not attributed to a specific segment.
2. Segment profit is adjusted with operating profit on the consolidated statements of income.

21

b. Related information
The Fiscal Year Ended March 31, 2023 (April 1, 2022, to March 31, 2023)
1. Information by product and service
Information by product and service is omitted here as segmentation is equivalent to that used for reportablesegments.
2. Information by region(1) Net sales(Millions of yen)
Japan

Other

402,220

Total
114,734

516,954

Note: Net sales are classified by country or region based on the customer’s location.
(2) Property, plant and equipment(Millions of yen)Japan
157,222

Other

Total
17,027

174,249

3. Information by major customer
Information by major customer is omitted since there were no sales from a single customer accounting for 10%
or more of consolidated net sales.

22

The Fiscal Year Ended March 31, 2024 (April 1, 2023, to March 31, 2024)
1. Information by product and service
Information by product and service is omitted here as segmentation is equivalent to that used for reportablesegments.
2. Information by region(1) Net sales(Millions of yen)
Japan

Other

410,074

Total

113,641

523,715

Note: Net sales are classified by country or region based on the customer’s location.
(2) Property, plant and equipment(Millions of yen)
Japan

Other

158,524

Total

20,113

178,637

3. Information by major customer
Information by major customer is omitted since there were no sales from a single customer accounting for 10%
or more of consolidated net sales.
(Information per share)
Fiscal Year Ended March 31, 2023
(April 1, 2022, to March 31, 2023)

Fiscal Year Ended March 31, 2024
(April 1, 2023, to March 31, 2024)

Net assets per share¥ 3,318.17¥3,572.06

Net profit per share¥116.33¥145.91－－

Fiscal Year Ended March 31, 2023
(April 1, 2022, to March 31, 2023)

Fiscal Year Ended March 31, 2024
(April 1, 2023, to March 31, 2024)

Net profit per share (diluted)(Notes)1. Net profit per share (diluted) is not presented since there is no dilutive share.
2. The basis for calculating net profit per share is as follows.

Net profit per share
Profit attributable to owners of parent(Millions of yen)

7,203

9,037

Amount not attributable to ordinary shareholders(Millions of yen)－－

Profit attributable to owners of parent related tocommon stock (Millions of yen)

7,203

9,037

Average number of common stock outstanding
during the term (shares)

61,917,662

61,937,360(Significant subsequent events)
Not applicable23