May 15, 2023
Name of company: Nippon Light Metal Holdings Company, Ltd.
Name of representative: Ichiro Okamoto, President & Chief Executive Officer
Stock Code: 5703 Listing: Tokyo Stock Exchange (Prime Market)
Contact: Chizu Ishikawa, Public Relations and Investor Relations
Central Planning Office (TEL: +81-3-6810-7160)
Establishment of Medium-term Management Plan (Fiscal 2023–2025)

Nippon Light Metal Holdings Company, Ltd. (President & Chief Executive Officer: Ichiro Okamoto;
headquarters: Minato-ku, Tokyo; hereinafter, “the Company”) has established the Nippon Light Metal Group’s
2023 Medium-term Management Plan (hereinafter, “2023 Medium-term Plan”), a three-year plan starting in
April 2023 that is based on changes in the Group’s conditions and fluctuations in the business environment.
1. Background of revisions to Medium-term Plan
Last year, the Group revised the Nippon Light Metal Group’s management policies as a long-term guide to itsinitiatives. The Group believes that, as its medium-term policy, one of its most important issues is to raise theGroup’s corporate value by balancing the creation of the value that customers seek with its response to socialissues such as carbon neutrality. With this understanding, the Group established a three-year medium-term plan(hereinafter, “2022 Medium-term Plan”) that began in April 2022. In fiscal 2022, the Group steadily implemented
measures based on its mission to provide products and businesses that contribute to the creation of social value
and strengthen the Group’s management foundation, the two basic policies in the 2022 Medium-term Plan.

The Group has been making reforms to its business structure to further raise its corporate value, such as thetransfer of shares in Toyo Aluminum, announced in the previous fiscal year, the consolidation of the Group’s
auto parts business in Nikkeikin ALMO Company, Ltd., strategic initiatives to realize carbon neutrality, andinitiatives to prevent inappropriate behavior related to issues related to quality in the Group. In light of these
initiatives, the Group established a new three-year Medium-term Management Plan (hereinafter, “2023Medium-term Plan”), a three-year plan starting in fiscal 2023.

12. Overview of Nippon Light Metal Group’s 2023 Medium-term Plan
(1) Basic policies
a. Initiatives for new Team Nippon Light Metal▶ Structural reforms to raise Group’s corporate value▶ Response to carbon neutrality▶ Promote management reforms and strengthen internal control functions〇 In order to become a corporate group that can provide reliable value to customers andstakeholders and regain trust, the Group is allocating Group resources in an optimal way tofurther create Group synergies and is pursuing business structure reforms, including thetransfer of shares in Toyo Aluminum and the consolidation of the auto parts business.
〇 In order to reduce greenhouse gas emissions by 30% or more compared to 2013 levels by 2030
and achieve carbon neutrality by 2050, The Group’s Green growth strategy office will workin an integrated way to draft and implement the Group’s overall decarbonization strategy.
〇 Top management will take the lead in pursuing management reforms with a strong sense ofpurpose. With the Business transformation office, set up in April 2023, at the core of theseefforts, the Group will steadily implement measures to prevent the reoccurrence ofinappropriate behavior regarding quality, without delays. Progress on these preventive
measures will be reported regularly on the Group’s website.
b. Provide products and businesses that contribute to the creation of social value▶ Provide products and business that satisfy customers’ needs▶ Provide a range of products and businesses throughout the overall supply chain life cycle▶ Strengthen the Group collaboration system to solve social issues〇 The Group has consolidated its auto parts business in the new Nikkeikin ALMO Corporation,Ltd., in order to improve its competitiveness in responding to changes in the market
environment, starting with growing demand for eco-friendly cars in the auto market. We will
work to improve customer service and pursue Group synergies.
〇 The Group is actively working on its semiconductor-related business. For example, Nikkei
Panel System Co., Ltd. constructed a second factory in Shimonoseki and is increasing
production of fluorocarbon-free heat-insulating non-combustible panels for clean rooms tomeet the increase in semiconductor manufacturing factories in Japan in light of stronger
economic security.
〇 By developing and providing products that utilize the strengths of aluminum as a lightweightmaterial with high heat dissipation, the Group will meet the growing need among customersto reduce global warming gases and help to protect the environment.
2(2) Management indicators
a. Financial indicators
The Group strives for a system that can permanently achieve ordinary profit in the 30–40 billion
yen in order to achieve sustainable growth. The 2023 Medium-term Plan aims to build a revenue
foundation that is highly resilient in the face of changes in the external environment by ensuringthat each business division creates value through its own growth strategies and that Group issues
are addressed.
(Unit: 100 million yen)

Net salesYear ended

Year endedYear ending

Year ending March

March 2022

March 2023

March 2024

2026 (Targets in 2023

(Actual)(Actual)(Forecast)Medium-term Plan)

4,866

5,170

5,500

5,300

Operating profit

222

75170300

Ordinary profit

22989

160300Net income

168

72

75

200

ROCE (%)*

8.7

3.2

5.2

10.3

*ROCE (return on capital employed):

Operating earnings before interest / capital employed (shareholders’ equity + interestbearing debt – cash and deposits)b. Basic policy regarding profit distribution
The Company’s basic policy on profit distribution is “to return profits to its shareholders bycomprehensively taking into consideration its consolidated financial results and other factors frommedium- and long-term perspectives while reinforcing its financial strength and managementfoundation.” The Group decides on dividend amounts using a total dividend payout ratio,
including the acquisition of treasury stock, of 30% as its indicator for profit returns.
Final year of 2023
Year ended March 2023

Year ending March 2024

Medium-term Plan,
Year ending March2026

Dividends

InterimYear-end

InterimYear-end

Annual reference

actualplan

forecast

forecast

figure40 yen

10 yen

10 yen40 yen

100 yen3

In addition to investments aimed at expanding business in growth areas such as automobiles andsemiconductors and creating demand and building up revenue potential in foundation businessareas, the Group will invest for the future by strengthening its management foundation, andinvesting in R&D and HR development as well as carbon neutrality as it works to improve
corporate value.
The Group will boost profitability by implementing the measures in the 2023 Medium-term Plan,and will then revise the business structure and improve capital efficiency, and strive to manage
business while considering improvements to the P/B ratio.
A separate press release on the 2023 Medium-term Plan will be released on the Group’s website at 2:00 p.m.
JST on May 26, 2023 (Friday).
Group website: https://www.nikkeikinholdings.com/news/ir/2023/index.html*Note on forecasts
The Group’s earnings forecasts and other statements concerning the future presented in these materials arecalculated based on information available at this point and certain assumptions deemed reasonable. They are notintended as a commitment to achieving these forecasts. Actual earnings results could differ significantly fromforecasts for various reasons, including economic conditions, demand trends, and foreign exchange fluctuations,among other factors.

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