5/2

Progress Overview of FY2023–2025
Medium-term Management Plan
(2023 Medium-term Plan)

May 28, 2024
Nippon Light Metal Holdings Company, Ltd.

Copyright Nippon Light Metal Holdings Co., Ltd. All rights Reserved.

2023 Medium-term Plan released on May 15, 2023

Nippon Light Metal Group’s management policy and FY2023–2025 Mediumterm Plan
Management principles
Management
policyImportant issues(Material issues)

Contribute to improving people's quality of life and environmental
protection by continuing to create business, focused on aluminumGroup’s important issues (material issues)Protecting the global environment, providing sustainable value,
happiness of employees, responsible procurement, production
and supply, corporate ethics and governance
FY2023–2025 Medium-term Management Plan, 2023 Medium-term Plan

Medium-termManagement Plan

1. Initiatives for new Team Nippon Light Metal
2. Provide products and businesses that contribute to thecreation of social value
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

2

2023 Medium-term Plan released on May 15, 2023

Basic policies
Pursue reforms to further raise corporate value so that we can become acorporate group that provides reliable value to stakeholders and regains thetrust of stakeholders

1. Initiatives for new Team Nippon Light Metal
 Structural reforms to raise Group’s corporate value
 Response to carbon neutrality
 Promote management reforms and reinforce internal control functions

2. Provide products and businesses that contribute to
the creation of social value Provide products and businesses that satisfy customers’ needs
 Provide a range of products and businesses throughout the overall supply
chain lifecycle
 Strengthen Group affiliation systems to solve social issues
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

3

2023 Medium-term Plan released on May 15, 2023

Basic policies ー Measures
Basic policies

1. Initiatives for new
Team Nippon Light
Metal

Measures

Objective (Background)

Structural reforms toraise Group’s corporate
value

Optimal allocation of resources
and structural reforms so that
more Group synergies can becreatedCarbon neutral(risk side)

Bring greenhouse gases down
to net zero by FY2050, down
30% in FY2030 (compared to
FY2013)

Promote management Top management will take thereforms and reinforce lead with a strong commitment
internal control functions to implementing initiatives

2. Provide products
and businesses
that contribute to
the creation ofsocial value

Acquisition of growth
areas
Overseas strategy
Carbon neutral（Opportunity side）

・ Autos:
Rapid growth in eco-friendly
cars
Expansion of overseas auto
market・ Semiconductors:
Return to production inJapan・ High need among customers
to reduce CO2 (Scope 3)

Fiscal 2023

Fiscal 2022

Fiscal 2024

Fiscal 2025

Consolidation of auto parts business, newcompany
Cut CO2, set
KPI, support for
TCFDGroup decarbonization strategy; formation of organization,
drafting and implementation of integrated strategy

Special investigationcommittee, internal
investigation, improvement
activities

Integration of functions for procurement, production
and sale of aluminum ingot
Measures to prevent reoccurrence (rebuilding Group
governance system, reinforcing internal audit divisions,reforming corporate culture, etc.)
Auto parts company Nikkeikin
ALMO

Lighter weight of auto parts, thermal
countermeasures for auto parts, compatible
with method-by-method cross-organizational
approach

Auto parts
Two poles consistingof Japan and China

US: mass production of auto underbody parts(trilateral system)
US: Increased production for secondary alloys
for auto body structural materials

India: second base for secondary
alloys (minority)
Japan: thermal insulation panels, reinforce
engineering

India: third base for secondary alloys(majority)
Japan: increased production of thermal
insulation panels for semiconductor
clean rooms

Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved.

4

2023 Medium-term Plan released on May 15, 2023

Growth areas that Group will focus on
Full mobilization of Group’s strengths to resolve social issues (reductions in
CO2, economy security) and satisfy customer needs
Automotive
Other

Automotive

Fiscal 2023
Public facilities,
landscaping,
Net sales
and architecture
results
Food 523.7 bn yen
Public facilities, landscaping,
and architecture

products
and daily
necessities

Transportation

Suspension
サスペンション

31%
Automobile-relatedElectrical machinery,electronics, andtelecommunications

11％

Brake calipers

Electrical machinery, electronics, andtelecommunications

Heat dissipation plates
for eco-friendly cars
For semiconductor
manufacturing equipment

Thick sheets

Low-soda
aluminum

Capacitors for car
air conditioners
For clean rooms

Thermal insulation
panels

Semiconductor-related
Food products anddaily necessities

Transportation
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

5

2023 Medium-term Plan released on May 15, 2023

Financial targets
Build up a system that can consistently achieve ordinary profit in
the 30–40 billion yen range to enable the Group’s sustainable growth(Unit: Billions of yen)

FY22
actualNet sales

FY23
forecast

FY23
actual2023
mediumterm plantarget
FY25

517.0

550.0

523.7

530.0

Operating profit

7.5

17.0

18.2

30.0

Ordinary profit

8.9

16.0

19.0

30.0

Profit

7.2

7.5

9.0

20.0

Annualdividends

50 yen50 yen50 yen

100 yen

ROCE

3.2%

5.2%

6.0%

10.3%

Total dividend
payout ratio

43.0%

41.3%

34.4%

31.0%

Since the timing of the transfer of shares in Toyo Aluminium has notbeen set at this point, Toyo Aluminum’s figures are factored only into
FY23 forecasts at the time of the release on May 15, 2023.

Net sales
600.0(Unit: Billions of yen)

Ordinary profit

550.0

Net sales
517.0

Ordinary
profit

60.0

530.0

500.0

50.0

400.0

40.0

300.0
24.5
20.6

200.0

26.3

29.5

31.1

30.0

30.0

23.5 24.0 22.9
16.0

20.0

12.7
100.0

0.0

6.9

8.9

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Forecasts

10.0

FY25
2023 Mediumterm Plan target

0 0.0

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

6

Table of Contents

1. Outlook of financial results for the fiscal
year ending March 31, 2025
2. Progress Overview of FY2023–2025
Medium-term Management Plan
(2023 Medium-term Plan)
3. Pursue management reforms

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

1. Outlook of financial results for the fiscal year ending March 31, 2025

Forecasts of financial results for the full fiscal year

Fiscal 2023 results: Exceeded our forecasts at the beginning of the period(announced in May 2023), indicating a smooth sales performance(Billions of yen)
Fiscal 2022
Results

Fiscal 2023
Forecasts

Fiscal 2023
Results

Fiscal 2024
Forecasts

Net sales

517.0

550.0

523.7

560.0

Operating profit

7.5

17.0

18.2

21.0

Ordinary profit

8.9

16.0

19.0

20.0

Profit attributable toowners of parent

7.2

7.5

9.0

13.0

Dividends per share

50 yen50 yen50 yen70 yenCopyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

8

1. Outlook of financial results for the fiscal year ending March 31, 2025

Market environment (automobile and semiconductor-related)
Automobile-related: We expect steady sales in Japan and Thailand and strong sales in the U.S, but the impact of
production cutbacks by Japanese automakers in China to persist. Although xEV-related demandand growth rate are expected to slightly slow down, steady growth trend remains unchanged.
Semiconductor-related: We anticipate a recovery in sales for manufacturing equipment from the second half of FY24
and a full recovery in sales for semiconductor products in FY25.
Automobilerelated
Aluminum and chemicals(Nippon Light Metal,
chemicals)

Secondary alloy ingot(Nikkei MC Aluminum)

Automotive parts(Nikkeikin ALMO)

Compared to FY23
Although the xEV ratio is expanding
and growing, the demand growthslowed in FY23 and is expected to
grow moderately in FY24.
Japan : Production recovery continued
in FY23 despite some impact
of production cutbacks.
Over- : Strong in the U.S., steady inseas Thailand
Local EV growth in China,
continued downturn for Japanesemanufacturers
Japan : Steady demand
Over- : China: Continued productionseas cutbacks by Japanesemanufacturers
U.S.: Favorable demandconditions

Semiconductorrelated

Compared to FY23

Alumina and chemicals(Nippon Light Metal,
chemicals)

The semiconductor product market
will recover from FY24, but a trend
toward full recovery is not expecteduntil FY25, partly due to supply chain
and inventory effects.

Thick sheets forsemiconductor
manufacturing equipment(Nippon Light Metal,
sheets)Although long-term demand is
expected to continue, a recovery indemand is likely from the second halfof FY24 due to sluggish demand
after FY22.

Panels for clean rooms(Nikkei Panel System)

Despite strong demand, factors
involving semiconductor producttrends, material price hikes, andconstruction labor shortages would
cause changes in the construction
schedule.
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

91. Outlook of financial results for the fiscal year ending March 31, 2025: By segment

Aluminum ingot and chemicals
Aluminum and chemicals: We forecast a gradual growth in sales of products for xEVs, with signs of recovery in the
FY25 sales of products for semiconductor equipment.
Secondary alloy ingot: Overall, solid sales are expected both in Japan and overseas.
Operating profit(Billions of yen)

Net sales(Billions of yen)
Nikkeikin-chemicals

200.0

Nikkei MC Aluminum

Operating profit

180.0
156.0

160.0

150.0

20.0

160.0

150.5

15.0

Aluminum and chemicals(Nippon Light Metal, chemicals)

Secondary alloys (Nikkei MC Aluminium) Fire-resistant heat-dissipating filler for xEV(aluminum hydroxide): Gradual growth indemand for FY24 after stagnating in FY23
 Low-soda aluminum for semiconductor
manufacturing equipment: Sales on track
for a full recovery in FY25

 Japan: Solid sales on a continued trend following
a recovery in auto production
 U.S.: Strong demand for automobiles, leading tosteady sales of products for auto body structuralparts
 Thailand: Sales on track with strong demand China: Acquisition of high value-added products
through alternatives for Japanese automakers
 India: Our majority-owned third base started
350
operation.

45.0
100.0

10.2

10.5

10.8

11.0

12.0

10.0

37.9

39.7
36.7

37.9

302

276
OverThailand
seas

Japan

0.0

FY22

FY23
Forecasts

FY23
Results

FY24
Forecasts

FY25
Targets
2023
Medium-term
Plan

0.0
Sales
Billions of
yen/year153

US 139

5.0

50.0

281
Overseas

China

137
FY22

FY23
Forecasts

FY23
Results

FY24
Forecasts

FY25
Targets
2023
Medium-term
plan

FY22
Sales
volume1000
tons/year

317

Japan

149
FY23
Forecasts

Overseas

China

OverThailand seas

US

India
China
Thailand

160

144

Overseas

190

US

Japan

Japan

Japan

137

157

160

FY23
Results

FY24
Forecasts

FY25
Targets2023 Mediumterm plan

Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved.

101. Outlook of financial results for the fiscal year ending March 31, 2025: By segment

Aluminum sheet and extrusions
We expect a recovery in sales of products for semiconductor manufacturing equipment from the second half of FY24.
Despite a continued recovery of automotive-related sales in Japan, production in China remains on a downtrend.
Operating profit(Billions of yen)

Net sales(Billions of yen)

Extruded products (ACT+auto parts)
Nippon Light Metal, sheets
Operating profit

200.0

Nippon Light Metal, sheets

20.0

150.0

150.0

107.4 105.0
100.0

15.0

117.0
97.5

10.0
9.0

 Despite sluggish and delayed recovery inproducts for semiconductor manufacturing
equipment, a rebound in sales of truck body
applications helps stabilize the revenue base.
 While domestic production is on a recovery
path, Japanese automakers in China remain
affected by production cutbacks, indicating
ongoing efforts to bring new products to themarket and reap future profits

73.0

52.7

54.4

50.6

50.7

5.0

50.0

0.0

 Sales growth remains unchanged due tocontinued long-term demand following afull recovery, given a rebound in thicksheets for semiconductor manufacturing
equipment from the second half of FY24.
 Solid demand for battery materials forautos, leading sales to maintainsmoothly
53.0
46.0
45.4
41.5
39.5

Extruded products(Nikkeikin Aluminium Core Technology・auto parts）

FY22

--0.6

1.0

0.5
FY23
Forecasts

-0.6

FY23
Results

FY24
Forecasts

FY25
Targets2023 Mediumterm Plan

0.0

Sales
Billions of
yen/year

FY22

FY23
Forecasts

FY23
Results

FY24
Forecasts

FY25
Targets2023 Mediumterm Plan

Sales
Billions of
yen/year

FY22

FY23
Forecasts

FY23
Results

FY24
Forecasts

FY25
Targets2023 Mediumterm Plan

Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved.

111. Outlook of financial results for the fiscal year ending March 31, 2025: By segment

Fabricated products and others

The truck body business sees sales return to a recovery track throughout the year.
The panel system business expects smooth performance.
Operating profit(Billions of yen)

Net sales(Billions of yen)
Nippon Fruehauf

Nikkei Panel System

Operating profit

250.0

25.0

200.0

200.0

182.0

170.4

153.2

175.0

Nippon Fruehauf

Nikkei Panel System Continued recovery in sales due to a rebound intruck chassis supply, with demand to be
captured also in areas of potential growth Continue to implement sales price revisions due
to rise in raw material prices and other costs bypassing on prices a portion of the increases

 Continued strong demand in the clean roombusiness due to the installation of products forsemiconductors in plants, need to closely monitorchanges in construction schedules due in part toconstruction labor shortages and material pricehikes.
 Smooth sales of products for food processing
factories due partly to demand in response to the2024 problem

20.0

64.9
15.0

150.0

67.5

71.7

74.0

54.4

30.9

33.7

32.9

35.0

34.0

FY24
Forecasts

FY25
Targets2023 Mediumterm Plan

13.0
10.0

100.0
8.0
7.0

6.6

50.0

0.0

FY22

0.1

FY23
Forecasts

FY23
Results

5.0

FY24
Forecasts

FY25
Targets2023 Mediumterm Plan

0.0

Sales
Billions of
yen/year

FY22

FY23
Forecasts

FY23
Results

FY24
Forecasts

FY25
Targets
2023
Medium-term
Plan

FY22

Sales
Billions of
yen/year

FY23
Forecasts

FY23
Results

Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved.

121. Outlook of financial results for the fiscal year ending March 31, 2025

Summary by segment
We expect operating profit to be 20.0 billion yen at the fiscal 2024 level, reflecting a recovery in the aluminum sheet
and extrusions and the fabricated products and others, as well as performance maintained in the aluminum foil,
powder, and paste businesses.

(Billions of yen)
Operating profit

Net sales

Fiscal 2022
Results

Fiscal 2023
Forecasts at
beginning of
periodFiscal 2023 Fiscal 2024 Fiscal 2022
Results
Results
Forecasts

Fiscal 2023
Forecasts at
beginning of
periodFiscal 2023 Fiscal 2024
Results
Forecasts

Aluminum ingot
and chemicals
Aluminum sheet
and extrusions
Fabricatedproducts andothers
Aluminum foil,
powder, andpasteManagement,
shared

156.0

160.0

150.5

160.0

10.2

10.5

10.8

11.0

107.4

105.0

97.5

117.0

-0.6

0.5

-0.6

1.0

153.2

182.0

170.4

175.0

0.1

7.0

6.6

8.0

100.4

103.0

105.3

108.0

1.5

3.0

5.6

5.0

－

－

ー

ー

-3.7

-4.0

-4.2

-4.0

Total

517.0

550.0

523.7

560.0

7.5

17.0

18.2

21.0

Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved.

13

Table of Contents

1. Outlook of financial results for the fiscal
year ending March 31, 2025
2. Progress Overview of FY2023–2025
Medium-term Management Plan
(2023 Medium-term Plan)
3. Pursuing management reforms

Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved.

2. Progress Overview of 2023 Medium-term Plan

Basic Policies and Measures: Fiscal 2024 Overview
Launched new structure / new factory / Nikkeikin ALMO and formulated “pursue management reforms” →Follow through with reaping future profits
Basic policy

1. Initiatives
for newTeam
NipponLight Metal

2. Provide
products andbusinesses
that
contribute to
the creationof socialvalue

Measure/Objective (background)

Structural measures to raiseGroup’s corporate value
Optimal allocation of resources
and structural reforms so that
more Group synergies can becreatedCarbon neutral(risk side)
Bring greenhouse gases down to
net zero by FY2050, down 30% in
FY2030 (compared to FY2013)
Promote management reforms
and reinforce internal control
functions
Top management will take thelead with a strong commitment toimplementing initiatives
Acquisition of growth areas
Overseas strategy
Carbon neutral(Opportunity side)・ Autos: Rapid growth in ecofriendly cars
Expansion of overseas auto
market・ Semiconductors: return toproduction in Japan・ High need among customers to
reduce CO2 (Scope 3)

FY2022

FY2023

FY2024FY2025

Fiscal 2023 Progress Fiscal 2024 Plan

Consolidation of auto parts business,
new company

Business consolidation
completed, transferred to
Nikkeikin Aluminum for MobilityGroup decarbonization strategy; formation of organization,
drafting and implementation of integrated strategy
Cut CO , set KPI,

Metal Division and Green Growth
Strategy Office launched2

support for TCFD

Integration of functions for procurement,
production and sale of aluminum ingot

Special investigation
Measures to prevent reoccurrence (rebuilding Group
committee, internal
governance system, reinforcing internal
investigation,
audit
divisions,reforming corporate culture, etc.)
improvement activities
Lighter weight of auto parts, thermal
countermeasures for auto parts,
compatible with method-by-method
cross-organizational approach
Auto parts
Two poles consisting ofJapan and China

Auto parts company Nikkeikin
ALMO

US: mass production of auto underbody
parts (trilateral system)

US: Increased production for secondary alloys for auto
body structural materials

Business Transformation Officelaunched, continued to takemeasures to prevent reoccurrenceBusiness groups andfunctional organizations
Transition to a new
structureDecarbonization
strategy androadmap will be
releasedReinforcement of Board of
Directors' supervisory
functionPursuing Management
Reforms: Formulation →execution

Nikkeikin Aluminum for Mobility
launched →Full-scale operation
startedNippon Light Metal Georgia
started operation
Continued to increase
production capacity

India: two bases forsecondary alloys (minority)

India: third base for secondary
alloys (majority)

New Nikkei CMR factory started
operation

Japan: thermal insulation panels, reinforce
engineering

Japan: increased production ofthermal insulation panels forsemiconductor clean rooms

Nikkei Panel System’s Shimonoseki
second factory started operation
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15

2. Progress Overview of 2023 Medium-term Plan

Sales by market domain
FY23 results and FY24 forecasts reflect the impact of slowing demand and the delayed
recovery in demand for sales of automotive and semiconductor-related products (electrical
Since the timing of the transfer of shares in Toyo Aluminium has not been set atmachinery, electronics, and telecommunications).
this point, Toyo Aluminum’s figures (the aluminum foil, powder, and paste
11%(Unit: Billions of yen)segment) are factored into the forecasts up to FY24.

517.0

550.0

523.7

560.0

530.0

Other
Public facilities,
landscaping, andarchitecture

Food and daily necessities

Transportation

14%

15%

11%

17%

Electrical machinery,electronics, andtelecommunications

11%

Automotive

32%

31%

31%

FY22

FY23
Forecasts
23/5 Plan

FY23
Results

11%

17%

11%
31%
FY24
Forecasts

18%

11%
36%

FY25
Target23/5 Plan

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16

2. Progress Overview of the 2023 Medium-term Plan

Growth areas: Business and products
Automobile-related: Despite the overall growth trend, xEV heat dissipation-related products has grown moderately in FY24 after slowing in FY23.
Semiconductor-related: Although the clean room business is strong, the recovery took time due to continued sluggish demand related to
manufacturing equipment.
Market domain

Automotive

Electricalmachinery,electronics, andtelecommunications(semiconductorrelated)

Businesscompany anddivision

Growth business and products

Net Sales growth (％)
Compared to FY22
FY23
FY23/5 Plan → Results

FY24 forecasts
FY24/5

FY25 target
FY23/5 plan

Nippon Light Metal,
chemicals

Fire-resistant heat-dissipating filler(for xEV, etc.)

46% increase → 11% decrease

8% increase

67% increase

Nikkei MC Aluminum

US, secondary alloys for auto body structural
materials

2% increase → 135% increase

120% increase

32% increase

Nikkei MC Aluminum

India, third base for secondary alloys
New company (operations to begin in FY24)(total overseas sales ofsecondary alloys)

10% increase → 4% increase

16% increase

41% increase

Nippon Light Metal,
sheetsSheet materials for auto battery cases, etc.

12% increase → 3% increase

27% increase

25% increase

Nikkeikin ALMO

Consolidation of automotive parts business

14% increase → 9% increase

7% increase

54% increase

Nippon Light Metal,
chemicals

Low-soda aluminum for semiconductor
manufacturing equipment

58% increase → 24% decrease 13% decrease

99% increase

Nippon Light Metal,
sheetsThick sheets and general materials forsemiconductor manufacturing equipment andother

12% increase → 16% decrease

9% increase

33% increase

Nikkei Panel System

Japan, thermal insulation panels for clean
rooms

26% increase → 21% increase

35% increase

35% increase

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17

2. Progress Overview of the 2023 Medium-term Plan

Capital investment and R&D expenses
Our aggressive approach for sales expansion and new product development remains
unchanged, but we have revised the investment timelines in response to demand conditions.
Unit: Billions of yen

Maintenance and updates

Energy conservation, safety, etc.

120.0

R&D expenses

112.0
97.2

100.0

86.5
80.0

24.0

21.0

17.3

28.0

26.0

33.0

34.0

34.0

2019 Medium-term Plan
FY19-212023 Medium-term Plan
FY23-25
Toyo's figures included only in FY23

Review
FY23-25

25.0

40.0

42.3

2016 Medium-term Plan
FY16-18

Depreciation

18.5
33.0

11.3

20.0

102.5

17.0

18.2

15.6

60.0

0.0

Expanded sales and new products

51.0

57.9

61.0

60.5

Since the timing of the transfer of shares in Toyo Aluminium has not been set at this point, Toyo Aluminum’s figures (inAluminum foil, powder, and paste segment) are factored only into FY23 forecasts in 2023 Medium-term Plan, and into the
FY23 and FY24 forecasts in this revision.
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18

2. Progress Overview of the 2023 Medium-term Plan

Main capital investment into sales expansion and new products during periodof 2023 Medium-term Plan

Automobile-related: Capital investments in Japan and the new factory in India are almost as planned, but we haverevised the investment timelines in North America and China.
Semiconductor-related: Investments to increase panel production are in line with the plan, and the investment timeline
for heat-dissipating alumina for manufacturing equipment has been revised.
Market area

Company

Case

Capital investment during 2023
Medium-term Plan (Billions of yen)2023 Medium-term
Plan (FY23/5)

FY24/5 revision

Automotive, electrical machinery,electronics, and telecommunications(semiconductor)

Nippon Light Metal, chemicals

New alumina products

1.0

Investment
timeline revised

Automotive

Nikkei MC Aluminum

Third base in India

Automotive

Nikkeikin ALMO

New auto parts in Japan

1.0
3.5

1.5
4.6

Automotive

Nikkeikin ALMO

New auto products for thermal
countermeasures in Japan

1.5

1.6

Automotive

Nikkeikin ALMO

North America auto parts factory(expanded)

3.5

Investment
timeline revised

Automotive

Nikkeikin ALMO

China new auto parts

2.5

Investment
timeline revisedElectrical machinery,electronics andtelecommunications (semiconductor)

Nikkei Panel System

Increased production of non-fluoron
thermal insulation panels in Japan

2.5

2.5

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19

2. Progress Overview of the 2023 Medium-term Plan

Revenue from new product sales
Capturing growth areas other than those related to automobiles and semiconductors
Aiming to exceed 100 billion yen in net sales from new products in the fiscal 2030s
Unit: Billions of yen
100.0

Automotive

Electrical machinery and electronics (incl. semiconductor-related)

Other

100 or higher
80 or higher

80.0
60.0
40.0
20.0
0.0

FY22

FY23
Forecasts

FY23
Results

Thermal insulation panels
for clean rooms(Nikkei Panel System)

FY24
Forecasts

FY25
Forecasts

FY28 onwards

Aluminum alloy pathfor bridge inspections(Nikkei Engineering)

Pre-Plated Aluminum Busbars(Nippon Light Metal, sheets)
Cooling parts for
power modules(Nikkeikin ALMO)FY3X

Aluminum 3Dmodeling products(Nikkeikin ACT)

Horizontally-recycled
aluminum bodies(Nippon Fruehauf)
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

20

2. Progress Overview of the 2023 Medium-term Plan: Nikkeikin Aluminumfor Mobility Company’s Growth Strategy

Aims of establishing Nikkeikin ALMO

Providing ever-greater value to customers and realize a more robust business structure
Automotive industry trends
The automotive industry is shifting to EVs, backed by national environmental policies and otherfactors.
1.

Increasing need to develop new manufacturing methods and parts with new functions and other elements, alongside the shift to EVs

2.

Importance of parts suppliers capable of reducing environmental impact

3.

Necessity of responding to all global regions

4.

Importance of having a complete set of functions ranging from development and design to manufacturing

Nikkeikin ALMO launched to meet market and customer needs
Establish businessfoundation
 Centralization of

information, faster
decision-making

Establish competitive
advantage
 Consolidation of scatteredresources and flexible
allocation

Expand businessdomains Ability to respond to global

supplyIncrease businessvalue
 Establishment and popularization ofCompany’s brandCopyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

21

2. Progress Overview of the 2023 Medium-term Plan:
Nikkeikin Aluminum for Mobility Company’s Growth Strategy

Product strategy

We will increase business value by developing new products incorporating complex
technologies.
Battery pack system

Power controller unit

In-vehicle camera
housing

Battery cooler

IGBT cooler(brazed)IGBT cooler(FSW)
Cooling plate(die-casting)Battery frames/parts
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

22

2. Progress Overview of the 2023 Medium-term Plan:
Nikkeikin Aluminum for Mobility Company's Growth Strategy

Existing product line

Based on application results in engine and HV vehicles, the need for aluminum products withadvantages in weight reduction and heat dissipation is increasing as measures for safety, electricity
cost, and comfort accompanying progress in EVs and electrification.

Area

Example of main products

 High-strength requirements due to increased
vehicle weight

Suspension(underbody parts)
Forged suspension

 Increasing inquiries from Japanese
automakers
 Enhanced performance due to increase in
vehicle weight

Brakes(underbody parts)

 Designability (painting) Increase in control and electric systems

BrakesAir conditioner

Changing needs due to the shift
to EVsCapacitors

 Inquiry on cutting process Design + High-strength alloy + Manufacturingmethod + Processing technology

 Assurance of the internal quality of castings
by TOMAQ🄬🄬 method Pipe casting Shell cores Elimination of engine heat source andadoption of heat pump system (increased
heat exchanger) Boding technology

 Increased air-conditioning domain

 Assembly technology

 Long-term partners approached All electric pressers for EVs designed to be
scroll-type

Forged scroll

Strengths

 Increasing strength requirements and rising
share of forged products

 Material + Method (Near-net shape by hydraulic forging)

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

23

2. Progress Overview of 2023 Medium-term Plan

Progress on Measures to Prevent Reoccurrence in the Group
Progress is on track (to be completed as planned, by the end of the 2023 Medium-term Plan period
ending in March 2026).

Pursue management reforms

Reinforce internal control functions（1） Build and administer effective internal control
system under supervision of Board of
Directors（3） Reinforce information reporting andaffiliations（5） Rebuild the quality assurance system（6） Constant verification
See the following “Pursue
management reforms”（5） Reinforce internal audit division（6） Reforms to internal reporting system（7） Utilize external resources
For reference, click here for an overview of progress on the measures to prevent
reoccurrence in the Group.
https://www.nikkeikinholdings.co.jp/company/quality-control.html
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

24

2. Progress Overview of the 2023 Medium-term Plan:

Progress on Measures to Prevent Reoccurrence in the Group
Becoming a responsible corporate group by bringing together directors and employees tocreate an open corporate climate as the new Team Nippon Light Metal

 Conducted dialogue between management  Quality Day (every March 29)
and employees (to be continued)
Recognizing once again the importance ofSite Manager Meeting
quality
Held 22 meetings, attended by a total of
Key topic: “Workplace discussions through
3,637 site managers
case studies - What would you do?”Workplace Tour
Held at 619 sites, attended by 7,024
Held 86 times, attended by 1,542 employees
employees
 Strengthening the quality of compliance Compliance Meetings attended by all
training
employees (to be continued)
Held a seminar on “Violations andTheme: “Behavioral and Workplace
Compliance”
Changes”
Attended by 1,783 directors and employees
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

25

Table of Contents

1. Outlook of financial results for the fiscal
year ending March 31, 2025
2. Progress Overview of FY2023–2025
Medium-term Management Plan
(2023 Medium-term Plan)
3. Pursue management reforms

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

3. Pursue management reforms

Formulation of the management reform framework
Top management will take the lead with a strong commitment to implementing initiatives
toward a new Team Nippon Light Metal.
March 2023

Company report on inappropriate
behavior to quality standards
Pursue management reforms(1) Rebuild Group’s governance system－Strengthen Group affiliation(2) Rebuild relationships between the Company
and Group companies(3) Address management issues and risks within
the Group(4) Cross-sectoral response by sales, development,
manufacturing, quality assurance, and otherdivisions(5) Rebuild the quality assurance system(6) Constant verification(7) Reinforce supervision by Board of Directors

May 2023
May 2024

2023 Medium-term Plan
Basic policies
1. Initiatives for new Team Nippon Light Metal
Structural reforms to raise Group’s corporate
value
Response to carbon neutrality
Promote management reforms and reinforce
internal control functions
2. Provide products and businesses that contribute to
the creation of social value• Provide products and businesses that satisfy
customers’ needs• Provide a range of products and businesses
throughout the overall supply chain lifecycle• Strengthen Group affiliation systems to solve
social issues

Management reform framework

Reinforce thesupervisory
function of theBoard of Directors
Grouping ofbusinesses andfunctionalorganizations

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

27

3. Pursue management reforms

Issues for NLM Group
Further enhancing corporate value in both financial and non-financial terms
Financial corporate value
Increase profitability
Increase net sales

Raise earnings rates

Non-financial corporate value
Strengthen sustainability andcompetitivenessKey issues for
the Group(Materiality)

Protecting the global environment

Providing sustainable value

 New products
 Peripheral areas
 M&A

 Competitiveness(price/cost) Shift to higher-value
businesses andproducts
 Increase internal
efficiency(process reforms)

Happiness of
employees

Responsible
procurement,
production, andsupplyCorporate ethics
and governance
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

28

3. Pursue management reforms

Reinforcement of the Board of Directors’ supervisory function
・ The Board of Directors will exclusively perform their supervisory duties, primarily in formulating Group strategies to maximize
corporate value.
・ Outside Directors will account for more than 50% of the total number of directors, and directors will no longer hold concurrent
positions with Officers in charge of business groups.
➡ We will strengthen and accelerate strategic decision-making.
Before change
Board ofDirectors: 14

Board ofDirectors

President and Chief
Executive Officer

Directors : 13

After change from June 25, 2024

Directorsof theCompany:
OutsideDirectors:

9
5

Board ofDirectors: 9

Decreasein number

CompositionchangePresident and Chief
Executive Officer

Directors: 8

5

Executive members: 19

Executive members: 17

Executive
members
Officers (Directors): 8

OutsideDirectors:

4

Outside Director ratio: 56%

Outside Director ratio: 38%

President and Chief
Executive Officer

Directorsof theCompany:

Officers :8

President and Chief
Executive Officer

Officers (Directors): 3

Officers: 15

Transfer of authority to Officer in charge of business groups
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

29

3. Pursue management reforms

Grouping of businesses and functional organizations
Toward an organizational structure that enables collaboration across the Group companies, by breaking away from“decentralized governance,” an issue in the Group’s organizational structureGrouping of businesses (Group companies) and functions closely related to market areas and processes

BusinessGroup
President

Officer of the Company shall fulfill its duties as the Head of BusinessGroup to maximize profitability and business value of the businessgroup on the premise of maximizing corporate value of the Group
Business Group(new structure)

Subsidiaries and divisions

 Chemicals Business GroupNLM Chemicals Division, Nippon Electrode, etc.

Aluminum and chemicals, carbon
products

 Metal Business GroupNLM Metal Division, Nikkei MC Aluminium, etc.

Primary ingot, secondary alloy ingot(recycled ingot)

 Sheet & Extrusion Business GroupNLM Rolled Products Division, Nikkeikin Aluminium CoreTechnology, etc.

 Engineering Business Group

Nikkei Panel System, Nikkei Engineering, etc.

Panel systems / landscape engineering Transport Equipment Business Group

Nippon Fruehauf, etc.

Truck bodies

 Automotive Parts Business Group

Nikkeikin Aluminum for Mobility, etc.

Automotive parts

 Infrastructure Business GroupNLM Kambara Complex, Tomakomai Complex, Nikkei Logistics, etc.

Plant infrastructure, logistics

 Aluminum Foil Business GroupToyo Aluminium, etc.

Aluminum foil, powder, and paste,
daily necessities

Business / market area

Aluminum sheets, extrusion products

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

30

3. Pursue management reforms

Grouping of businesses and functional organizations
Toward an organizational structure that enables collaboration across the Group companies, by breaking away from“decentralized governance,” an issue in the Group’s organizational structureGrouping of businesses (Group companies) and functions closely related to market areas and processes

Functionalorganizations

Toward a structure that enables us to pursue new business and product development
comprehensively, in addition to strengthening governance, quality, and safety, as well assustainability and carbon neutrality that helps to create societal value

Functional organizations (new structure)
President

 Business Transformation Office Quality Assurance Division

Quality assurance, product safety Technology and Development
Administration Department

Technology and development, research Marketing & Incubation
Administration Office

Product development, business andproduct creation, M&A

 Sustainability Promotion
Administration Office Corporate Personnel Administration
Office

CSR, audits, legal affairs, occupational safety
and health management, environment Planning Administration Department

Personnel, general affairs, accounting& finance , procurement
Corporate planning, information
systems, public relations and IR

 Green Growth Strategy Office
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

31

4. Pursue management reforms

Establishment of the Marketing & Incubation Administration Office
Toward ambidextrous management by developing (marketing) new products in existing businesses and creating (incubating)new businesses that lay the foundation for the future.
Strengthen driving force of the Group as a whole

Create new value for customers by thoroughly exploring thestrengths in collaboration across the Group companies

Incubation promotion
New business development

Marketing promotion
Deepen and strengthen existing businesses
President and Chief
Executive Officer

New businessconcept creation

New business project
management

Internal
venturing

Scaling up

Marketing & Incubation
Administration OfficeBusiness
Groups

Maximize the effect of Team NLM with marketing
support to business groups and business divisions



Toward a solution to societal issues through new businesses
that bring together internal and external expertiseInnovation (external co-creation: M&A, CVC)
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

32

Progress Overview of the 2023 Medium-term Plan

Working to Achieve Financial Targets

Strategy of ‘2023 Medium-term Plan’ + Execution of ‘Pursue Management Reforms’
We have established the new team NLM’s revenue base, and will not let down the flag of 30 billion yen in
ordinary profit.

（Billions of yen）

FY23

Forecast

FY23
ActualFY24

Forecast

2023
Mediumterm Plan
target
FY25

Net sales

550.0

523.7

560.0

530.0

Operatingprofit

17.0

18.2

21.0

30.0

Ordinary
profit

16.0

19.0

20.0

30.0

Profit

7.5

9.0

13.0

（Billions of yen） Ordinary profit

Net sales
600.0

50 yen50 yen70 yen

100 yen

ROCE

5.2%

6.0%

6.3%

10.3%

Total
dividend
payout ratio

41.3%

34.4%

33.4%

31.0%

Since the timing of the transfer of shares in Toyo Aluminium has not been set at this point, Toyo
Aluminum’s figures (the aluminum foil, powder, and paste segment) are factored into theforecasts up to FY24.

523.7

Ordinary profit in 2023 Medium-term Plan

560.0
530.0

Net sales

500.0

50.0

400.0

40.0

29.5

300.0

20.0

Annualdividends

60.0

F23 results, F24 forecasts for ordinary profit

24.5
20.6

200.0

31.1

30.0

26.3
23.5

24.0

30.0

22.9
19.0

20.0

20.0

12.7
100.0

0.0

6.9

8.9

10.0

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

Actual Forecast 2023 Mediumterm Plan target

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

0.0

33

Progress Overview of the 2023 Medium-term Plan

Shareholder returns

Shareholder returns based on stable dividends
Our policy is to return profits to all shareholders, comprehensively taking into account the maintenance ofconsolidated earnings and a sound financial foundation for the medium to long term, while also reinforcing thefinancial system and management foundation (30% or higher of total dividend payout ratio).
（Unit: yen）
Profit200

Ordinary profit Annual
Annual dividends
devidends

150

20.6

100

24.5

12.7
50

0

6.9

30

(Billions of yen)

40

3.4

5.1

FY12

FY13

50

60
15.5

26.3

29.5

31.1

90

80
18.0

FY16

FY17

FY18

22.9
19.0

90
16.8

FY19

8.9

50

7.2

3.4
FY20

20.0

85

65
7.5

FY15

24.0

20.6

9.6
FY14

30.0
23.5

80
19.5

40.0

FY21

FY22

50
9.0
FY23

30.0

100

20.0

70
20.0

10.0

13.0

FY24

FY25

0.0

The Company carried out a share consolidation at a ratio of 1 share for every 10 shares of common stock on
Forecast FY23 Mediumterm Plan target
October 1, 2020, and the dividend amount per share prior to FY2019 (fiscal year ended in March 2020) takes into
account the effect of this share consolidation
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

34

チーム日軽金として、異次元の素材メーカーへ
Team NLM – Groundbreaking Innovator of Aluminum and Beyond35Supplemental materials

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

Supplemental materials

Trends in overall demand for aluminum products in Japan
400
350
300

000 ・・・Averageduring period(1,000 tons)
316

312

301

298

301

298

250
200
150
100
50
0

4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2FY2021
FY2022
FY2023Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

37

Supplemental materials

Elements and sensitivity
Fiscal2022
Results

Aluminum ingot(yen/kg)

Exchange rates(yen/USD)

Dubai crude(USD/BBL)

408
135
93

Fiscal2023
Results

389
145
82

Fiscal2024
Forecasts

Sensitivity to ordinary profit

380

Assuming a 10 yen/kg
increase-0.5 billion yen/year

140

Assuming 10 yen
appreciation-0.5 billion yen/year

95

Assuming a USD10/BBL
increase-0.8 billion yen/year

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

38

Supplemental materials

Financial results for the fiscal year ended March 31, 2024
– compared with the same period in previous fiscal year

(Billions of yen)

Fiscal 2022
Results

Fiscal 2023
Results

Net sales

517.0

523.7

Operating profit

7.5

18.2

Ordinary profit

8.9

19.0

Profit attributable toowners of parent

7.2

9.0

(+25.5%)

ROCE

3.2%

6.0%

+2.8p

Dividends per share

50 yen50 yen±0Change+6.7(+1.3%)+10.7(+141.3%)+10.1(+114.8%)+1.8

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

39

Supplemental materials

Financial results for the fiscal year ended March 31, 2024
Factors behind changes in ordinary profit – compared with the same period in previous fiscal year

Fiscal 2022
Results

-3.1

Other

New products+0.2

Purchased
products

+0.0

+12.6

Sales price+0.4
Sales volume

8.9

Fiscal 2023
Results+10.1 billion yen

19.0

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

40

Supplemental materials
Financial results for the fiscal year ended March 31, 2024
Segment information – compared with the same period in previous fiscal year

(Billions of yen)

Net sales
Fiscal 2022
Results

Fiscal 2023
Results

Aluminum ingot
and chemicals

156.0

150.5

Aluminum sheet
and extrusions

107.4

97.5

Fabricatedproducts andothers

153.2

170.4

Aluminum foil,
powder, and paste

100.4

105.3

Management,
shared

－
517.0

Total

Operating profit
Fiscal 2022
Results

Fiscal 2023
Results

-5.5

10.2

10.8

-9.9

-0.6

-0.6

±0

+17.2

0.1

6.6

+6.5

+4.9

(+4.9%)

1.5

5.6

+4.1

(+271.1%)

－

－

-3.7

-4.2

-0.5

523.7

+６.７

7.5

18.2

+10.7

Change(-3.5%)(-9.2%)(+11.3%)(+1.3%)

Change+0.6(+5.5%)(―)(―)(＋141.3%)

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

41

Supplemental materials

Financial results of key companies(Billions of yen)
Fiscal 2022 Results

Fiscal 2023 Results

Net sales

OperatingprofitOrdinary
profitNet sales

OperatingprofitOrdinary
profitNippon Light Metal(Non-consolidated)*

155.3

2.9

7.2

141.5

3.2

6.7

Toyo Aluminium (Consolidated)

100.8

0.9

2.5

105.6

5.5

6.1

Nikkei MC Aluminum (Consolidated)

103.8

2.3

2.8

99.9

2.4

3.0

Nippon Fruehauf (Consolidated)

54.4

-5.4

-5.4

67.5

-1.0

-1.1

Nikkeikin Aluminium CoreTechnology (Consolidated)*

52.7

-1.3

-0.9

42.3

0

0.1

Nikkei Panel System (Consolidated)

30.9

4.1

4.1

32.9

4.7

4.8

Nikkeikin ALMO(for second half only*)

ー

ー

ー

16.1

-0.7

-0.8

* The industrial parts and heat exchanger businesses of Nippon Light Metal and the automotive-related business of Nikkeikin
Aluminum Core Technology were transferred to Nikkeikin ALMO from FY2023 Q3.
Copyright Nippon Light Metal Holdings Co., Ltd. All rights Reserved.

42

Supplemental materials
Full-year financial results forecasts and dividend forecasts for the fiscal year
ending March 31, 2025
(Billions of yen)

Fiscal 2023
Results

Fiscal 2024
Forecasts（May 15）

ChangeNet sales

523.7

560.0

+36.3

Operating profit

18.2

21.0

+2.8

Ordinary profit

19.0

20.0

Profit attributable toowners of parent

9.0

13.0

(+43.9%)

ＲＯＣＥ

6.0%

6.3%

+0.2p

Dividends per share

50 yen70 yen+20 yen(+6.9%)(+15.5%)+1.0(+5.1%)+4.0

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

43

Supplemental materials
Factors behind changes in ordinary profit for the fiscal year ending March 31, 2025
– compared with the same period in previous fiscal year

Fiscal 2023
Results

Fiscal 2024
Forecasts（May 15）+1.0 billion yen

+6.0

+1.2

+3.0

-2.3

-6.9
20.0
Other

Purchased
products

Sales priceNew products

Sales volume

19.0

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

44

Supplemental materials

Segment information – compared with the previous year
(Billions of yen)
Net sales
Fiscal 2023
Results

Fiscal 2024
Forecasts

Aluminum ingot andchemicals

150.5

160.0

Aluminum sheet andextrusions

97.5

117.0

Fabricated products
and others

170.4

175.0

Aluminum foil,
powder, and paste

105.3

108.0

－

－

523.7

560.0

Management,
sharedTotal

Operating profit
Fiscal 2023
Results

Fiscal 2024
Forecasts

+9.5

10.8

11.0

+19.5

-0.6

1.0

+1.6

+4.6

6.6

8.0

+1.4

+2.7

5.6

5.0

(-11.3%)

-4.2

-4.0

+0.2

18.2

21.0

+2.8

Change(+6.3%)(+20．0%)(+2.7%)(+2.6%)－+36.3(+6.9%)

Change+0.2(+2．2%)(ー)(+21.9%)-0.6(+15.5%)

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

45

Supplemental materials

Financial results of key companies(Billions of yen)
Fiscal 2023 Results

Fiscal 2024 Forecasts

Net sales

OperatingprofitOrdinary
profitNet sales

OperatingprofitOrdinary
profitNippon Light Metal(Non-consolidated)*

141.5

3.2

6.7

144.7

3.3

6.3

Toyo Aluminium (Consolidated)

105.6

5.5

6.1

107.0

4.9

4.8

Nikkei MC Aluminum(Consolidated)

99.9

2.4

3.0

106.8

2.7

3.1

Nippon Fruehauf(Consolidated)

67.5

-1.0

-1.1

71.7

1.0

1.0

Nikkeikin Aluminium CoreTechnology (Consolidated)*
Nikkei Panel System

42.3

0

0.1

33.7

1.1

1.1

(Consolidated)

32.9

4.7

4.8

35.0

4.3

4.4

Nikkeikin ALMO*

16.1

-0.7

-0.8

32.1

-1.1

-1.5

* The industrial parts and heat exchanger businesses of Nippon Light Metal and the automotive-related business of Nikkeikin
Aluminum Core Technology were transferred to Nikkeikin ALMO from the second half of FY2023.
Copyright Nippon Light Metal Holdings Co., Ltd. All rights Reserved.

46

Supplemental materials

Cash Allocation
Cash Allocation Diagram
2016 mid-term
management plan

Review
FY23–252019 mid-term
management plan

Research
investment

Research
investment

Research
investment

15.6

billion yen

18.5

billion yen

18.2

billion yen
Depreciation

51.0

OperatingCF

97.0

billion yen

billion yen

Investing CF

Depreciation-49.6

billion yen

Depreciation

Shareholder OperatingCF
returnsbillion yen-15.5

billion yen
Reinforcing
the financial
foundation-31.9

billion yen

91.9

billionyen

57.9

Investing CF Operating-73.4

billion yen

CF

60.5

billion yen

83.0

-15.2

billion yen-85.0

billion yen

billionyen

Shareholder
returns

Investing CF

Funding, etc.

Shareholder
returnsbillion yen

billion yen

14.0

-12.0

Reinforcing the
Since the timing of the transfer of shares in Toyo Aluminium has not beenat this point, Toyo Aluminum’s figures (the aluminum foil, powder, andfinancial foundation set
paste segment) are factored into the forecasts up to FY24.

-3.3 billion yen

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

47

Supplemental materials

Equity Ratio and D/E Ratio(%)(times)
1.8

40

2.0

1.8
1.6
1.4

30
20

26.6
25.0 25.5

35.6

28.8 0.9

37.2

0.8

39.0 39.6

0.7

0.7

37.6 38.1 39.0

0.8

0.8

0.8

40.7 40.1

0.7

0.8

43.4
1.5

1.0

0.7
0.5

10
Equity Ratio (%)

0

D/E Ratio (times)

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

0.0

Forecasts Medium-termplan target

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

48

Supplemental materials

Overseas sales and operating profit
Overseas operating profit

Overseas sales
China(Billions of yen)
140.0

120.0

114.7

Thailand

126.0
113.6

US

119.0

Other

127.0

(Billions of yen)

China

Thailand

US

8

7.5

6

100.0

1.3

36.0
80.0

27.8

33.8
28.6

20.0

0.0

34.3

34.7
32.1

27.2

31.3

FY22

FY23
forecast

34.0

3.6

4

27.0

60.0

40.0

Other

40.0

24.1

29.0

33.0

FY23
results

FY24
forecast

FY25 target
FY23 Mediumterm Plan

2

0

-2

3.0

1.1

0.5
0.7

1.7

0.3
1.1

1.6

0.2
0.5
-0.5

-0.7

FY22

FY23
forecast
23/5

FY23
results

0.8
0.6
-0.2

FY24
forecast
24/5

1.5

3.2

FY25
target23/5

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

49

Supplemental materials

What we can do by grouping businesses and functional organizations
Remove the resource constraints associated with individual efforts by business (Group company)
Flexible business and product portfolios
Current

After review

Business

Product(4)

Product(5)

Product(6)

MarginMarginMarginＡ

Business

Product(1)
High

MarginMediumProduct(3)

MarginLowFunctionalorganization

Ｘ

Ｂ

Product(1)

Product(2)

Product(7)

MarginMarginMarginHigh

MediumAfter review

Current

Business Group
Business

MarginProduct(2)

Resilient allocation of human resources (human capital)
Business Group
BusinessＡ

Business
B

Business
C

Business
X

Functionalorganization(HD)

Business
Y

P

MediumQ
MediumLow

Product(8)

MarginMarginMediumLow

Ｙ

Product(7)

Business

Ｃ

Business

Business
Group

High

Product(4)

Product(5)

MarginMarginHigh

MediumAbility to shift to high value-added
products in areas with higher growthpotential

R
S

Streamline efforts to improve operational
efficiency (DX, automation), accelerate thecreation of new products and businesses

Functionalorganization

Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.

50

Notes on this document
1. This document is intended to provide information on future management strategies, and not to solicit the purchase or sale of the marketable securities issued by the Company.
2. The forward-looking statements, including future trends and earnings estimates, are not historical facts and involve risks and uncertainties, and therefore do not guarantee future performance. Actual
financial results may differ materially from the estimates due to various factors, including unpredictable changes in economic conditions. Significant factors that may affect actual financial results
include but are not limited to the economic climate surrounding the Group, social trends, and changes in the Group’s relative competitiveness in line with the demand trends for the products andservices provided by the Group.
3. The matters described in this document reflect the views of the Company at the time of its preparation and are subject to change without prior notice.
4. The Company shall assume no responsibility for any damage resulting from the use of this document.
5. This document has been translated from the Japanese original for reference purpose only. In the event of any discrepancy between this translated document and the Japanese original, the original
shall prevail.
Copyright Nippon Light Metal Holdings Co., Ltd All rights Reserved.