Consolidated Financial Results
Ended March 31, 2021
DaikyoNishikawa Corporation

June, 2021
2014年8月

Table of Contents

1. Financial Results

Page 2

2. Financial Forecast for FY 2021【Updated】 Page 11
3. Operation of the new US plant

Page 16

4. Strengthening of R&D capabilities

Page 21

5. Sustainability Initiative

Page 26

6. Efforts for Next Generation
Product Development

Page 31©DaikyoNishikawa Corporation All rights reserved.

P.1

1. Financial Results©DaikyoNishikawa Corporation All rights reserved.

P.2

Highlights

 Sales decreased year on year due to declined production of major
customers in the first quarter mainly because of COVID-19.

 Profits decreased due to declined production/sales, although there
were cost reductions and the increase in sales in Mexico.
 Period of the medium-term business plan formulated in FY2019 has
been extended by one year to FY2023 in response to changes inthe business environment, and the strategy and target management
indicators have been reviewed.

©DaikyoNishikawa Corporation All rights reserved.

P.3

Consolidated Profit and Loss Statement
Sales decreased due to declined production of major customers
due to spread of COVID-19 infection.
Profit also decreased due to declined production and sales.
(Millions of yen)

Financial Results
Ended
Mar.31, 2020

Financial Results
Ended
Mar.31, 2021

Net Sales

182,219

150,234-31,984-17.6%

Operating Income

8,995

4,456

-4,539-50.5%

Ordinary Income

9,500

5,386

-4,113-43.3%Net Income
Attributable to
Owners of Parent

4,907

2,536

-2,371-48.3%

Operating Margin

4.9%

3.0%

-1.9Pts－

Net Income per
Share

69.27Yen

35.75Yen-33.52Yen－©DaikyoNishikawa Corporation All rights reserved.

P.4

Changes(Y on Y)

Changes (%)

FY 2020 Result in comparison with the Forecast
Results exceeded the forecast due to minimization of fire damage, groupwide fixed cost reduction, reduction of market quality response costs, etc.
(Millions of yen, %)FY2020ResultFY 2020
Forecast

Changes

FY 2020
Forecast

Changes(As of Apr.8, 2021)(As of Nov.5, 2020)

Net Sales

150,234

150,000

0.2%

150,000

0.2%

Operating Income

4,456

3,300

35.0%

4,200

6.1%

Ordinary Income

5,386

3,600

49.6%

5,100

5.6%

Net Income
Attributable to Ownersof Parent

2,536

1,600

58.5%

2,400

5.7%

Operating Margin

3.0%

2.2%

－

2.8%

－

Net Income per
Share

35.75Yen

22.55Yen－

33.83Yen－©DaikyoNishikawa Corporation All rights reserved.

P.5

Reasons for Increase or Decrease inConsolidated Sales(Millions of yen)
200,000
180,000-29,681

160,000
140,000

-600

-634

-1,067・Impact of declining production
for major customers

120,000
100,000

182,21980,000150,234

60,00040,00020,0000©DaikyoNishikawa Corporation All rights reserved.

要
具
売
上

そ
の
他
売
上

P.6

為
替
影
響

19.3

18.3
期
売
上
高

製
品
売
上

期
売
上
高

Operating income increase or decrease factor(Millions of yen)・Impact of declining production

10,000
9,000
8,000
7,000
6,000

5,000

8,995

-8,643

△255
483

4,000

408

1,440

3,000

4,456
2,000
1,000

2,026

0

©DaikyoNishikawa Corporation All rights reserved.

P.7

Outline of segment business performance
Segment
Japan

China/Korea

Outline of business performance SALES：Decreased due to declined production of major customers
because of the impact of COVID-19
 PROFIT：Decreased due to the impact of decrease in sales and theimpact of fires at affiliated companies
 SALES：Decreased due to declined sales to Japan
 PROFIT：Decreased due to the impact of declined sales

ASEAN

 SALES：Decreased due to declined production of major customers

due to the impact of COVID-19
 PROFIT：Although there was cost reduction effect such as process
improvement at the Thailand subsidiary, profit decreased dueto the impact of declined production

Americas SALES：Increased due to production gain of major customers in
Mexico PROFIT：Although there was preparation cost of the new US plant,
profit increased due to favorable sales in Mexico©DaikyoNishikawa Corporation All rights reserved.

P.8

Sales by Region［Net sales to outside clients］
Sales increased due to increased production of major customers in Americas,
but in other segments, sales decreased due to the impact of COVID-19(Millions of yen)Domestic

Overseas

Financial
Results Ended
Mar. 31, 2020

Financial
Results Ended
Mar. 31, 2021

(component ratio)

145,491(79.8)

China/Korea

Changes(Y on Y)

Changes(%)

113,774(75.7)-31,716（-4.1Pts）-21.8%

5,975

5,380

-595

-10.0%

ASEAN

13,334

8,221-5,113-38.3%

Americas17,41722,857

5,440

31.2%

Sub total(component ratio)

36,728(20.2)

36,460(24.3)-268（4.1Pts）

-0.7%

Total

182,219

150,234-31,984-17.6%Japan©DaikyoNishikawa Corporation All rights reserved.

P.9

Operating Income by Region
With the exception of Americas segments, where sales increased due to the
production growth of major customers, profit decreased due to decreased
production mainly because of COVID-19(Millions of yen)Domestic

Overseas

Financial
Results Ended
Mar. 31, 2020

Financial
Results Ended
Mar. 31, 2021

(component ratio)

7,745(85.6)

China/Korea

Changes(Y on Y)

Changes(%)

2,176(50.1)-5,569(-35.5Pts)-71.9%

422

385

-37

-8.8%

ASEAN

1,393

397

-995

-71.4%

Americas

-515

1,382

1,898

－

Sub total(component ratio)

1,299(14.4)

2,165(49.9)

866(35.5Pts)

66.7%

Total

9,044

4,341

-4,702-52.0%Japan©DaikyoNishikawa Corporation All rights reserved.

P.10

2. Financial Forecast for Fiscal 2021
【Updated on Jun 7th, 2021】©DaikyoNishikawa Corporation All rights reserved.

P.11

Financial Forecast for FY 2021
【Financial Forecast for FY 2021】■ Cost factor: approximately 4.9 billion yen (depreciation, labor costs,
development costs, etc.) will be needed to prepare for US plant
operation.
■ There are concerns about production decline in the first half FY2021
due to the impact of COVID-19 and semiconductor shortages, whilea recovery trend will be seen in the later half.

【Efforts for FY2021】■ Promote company-wide cost improvement to carry out the mediumterm business strategies.
■ The preparation costs of the new US plant are under control as
expected on our business plan, and we are making good progress
toward a smooth start-up by the end of 2021.
©DaikyoNishikawa Corporation All rights reserved.

P.12

Financial Forecast for FY 2021
Although there is impact of increased production, sales forecast decrease by
applying new “Accounting Standard for Revenue Recognition”.
Profit forecast decrease due to the preparation costs of the new US plant.
(Millions of yen)

FY2020ResultFY2021
Forecast

Changes(Y on Y)

Changes(%)

Net Sales

150,234（※）131,000－－

Operating Income

4,456

1,700

△2,756△61.9%

Ordinary Income

5,386

2,900

△2,486△46.2%Net Income Attributableto Owners of Parent

2,536

300

△2,236△88.2%

Operating Margin

3.0%

1.3%

△1.7Pts－

Net Income per Share

35.75Yen

4.23Yen△31.52Yen－（※）As the "Accounting Standard for Revenue Recognition" is applied from FY2021, the financial forecast for FY2021 is basedon this standard. Therefore, the amount and rate of increase / decrease in sales with respect to the actual value before theapplication of the standard are not stated.
If the “Accounting Standard for Revenue Recognition” is not applied, sales will be 167,000 million yen (up 11.2% from FY2020.)

P.13

Capital Investment, Depreciation and R&D Expenses≪Capital Investment≫≪Depreciation≫≪R&D Expenses≫

Increase investment in molds
for new products

Start of depreciation in the
new bases

Accelerate R&D to create
beyond expectation products※FY2021: Plan

※FY2021: Plan

35
(Billions of yen)(Billions of yen)
14

※FY2021: Plan

5
(Billions of yen)

30
11.8

12
25.0

25

10.7

10
9.1

20.1

20
16.4

15

13.1

17.0

4

10.5
3.2

9.5
9.0

3

5
0

6

2

4
1
2
0

©DaikyoNishikawa Corporation All rights reserved.

3.0

3.0

2.9
2.6

8

10
7.2

3.0

0

P.14

Dividend
The year-end dividend for FY 2020 will be 17 yen as planned.
The annual dividends for FY 2021 will be 30 yen, the same as FY2020.
Dividends per share
40
35

28.25

30

15
10
5
0

(Yen)

19

16

5.625

9.25

12

FY2014FY2015FY2016

16.25

34

18

17

16
FY2017

30

30

30

15

17

15

17

15

13

15

FY2018FY2019FY2020

FY2021

28

25
20

34

10.625interim of period(Plan)

end of period※On January 1, 2016, we split its common stock into four shares.
The annual dividends for FY2014 and the interim dividends for FY2015 are calculated as dividends per share, assuming that a※ stock split was conducted.

Payout Ratio
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021(Plan)

17.0％

17.7％

18.9％

19.3％

23.2％

43.3％

83.9％

709.2%※FY2016：Excluding commemorative dividend©DaikyoNishikawa Corporation All rights reserved.

P.15

3. Operation of the new US plant©DaikyoNishikawa Corporation All rights reserved.

P.16

Aiming achievement of the new US plant (DNUS)
DNUS will be a global strategic plant where generates stable profitsand continuous growth can be achieved

What to achieve
Expand DNC’s vertically integrated
global manufacturing method
Product development& design

ToyotaCocreation

Bumpermanufacturing

Instrument
panel

Quality assurance

Procurement

Interior

Competitive plant operation
by generating synergy

P.17

Exterior&
Function

Cocreation

Mazda

Output of manufacturing【Process of manufacturing innovation 】◪ How to think of manufacturing innovation
Diversity to enhance
product competitivenessvarious kinds andsmall quantity

AimingfigureMultiproduct quality/quantity

Present
stage

Balance
Small variety and large quantity

Commonality to enhance volume efficiency◪ How to proceed of
manufacturing innovation【Output of Efforts】
Field

Effort contents●Combined planning
Product (Simultaneous structure
and process design)

Qualificationof structure &process

Structure &components

・All test characteristics are OK at the local
first trial
・Satisfy with Cp / Cpk in consecutive
production process・Mixing Toyota and Mazda enables
multiproduct variable quantity●Pursuit of high-efficiency ・Thorough loss reduction and the shortest
Production flexible production line
production process(Pursuit of ideal process) ・With defining fixed / variable, production
process / line minimizes dedicated area

●Maximize synergy by 3companies’ cooperation

・Commonization of molding with Toyota and
Mazda➨Low cost procurement by commonization
・Sharing the base of aqueous coating of
Toyota and Mazda
・Defined the sharing part and the original partabout painting regulation with Toyota and
Mazda●Efficient supply chain
with optimal zoning

・Minimized lead time by synchronous supply
to the line
・Minimized the inventory and improvementof efficiency by producing kinds near the line

Combinedplanning
Production
line

Results(Output)

Procurement

Thorough fitting

Reliable quality &competitive manufacturing

Logistic

P.18

DNUS progress●Adjacent to MTMUS, Alabama, USA

1】Progress towards mass production■Toyota : Confirmation stage for mass production equipment,materials and parts■Mazda :Preparation stage for all touring2】Construction and equipment installation status■Construction : Plant building, plant interior, exterior
and office construction are completed【Exterior】【Interior】■Equipment installation : Completed for Toyota【Molding】 Toyota parts are being molded witha 3000-ton molding machine【Painting】 Toyota parts are being painted on
the painting line

P.19

Future initiative1】Environmental initiatives●Contribution to the SDGs through expansion of
aqueous coating【Coating constitution】
2K Clear
Base➨Expansion to domestic and overseas affiliated companies

PrimerAqueous coating2】Towards localization in North America
1)Intimate operation with MTMUS, Toyota and Mazda➨Share longstanding know-how in the fields of personnel
and purchase➨Enhance on-site communication

2)

Community contribution (as a good neighbor)

Toyota

Mazda➨Participation in local events and UNITED WAY fundraising
activities➨Cooperation with AIDT ※1 (Local recruitment and humanresources training)※1： Alabama Industrial Development Training

Good
Corporation
citizen

Local
community

DNUS

Community
contribution

3】New business strategy1)Promotion of new proposal activities as one North America base
➨Proposal of interior, exterior and powertrain parts : Incorporated into Medium-term ProductStrategy and Customer Satisfaction Strategy
P.20

4. Strengthening of R&D capabilities©DaikyoNishikawa Corporation All rights reserved.

P.21

Consolidation and strengthen of R&D capabilities
with relocation
Consolidate and reorganize development functions
Strengthening cooperation with sales, design, technical, and production departments
Technical building(Laboratory)

Head plant

Headquarters
Strengthening cooperation
with all departments

Improvement of R&D function
17 laboratories set up in the technical building
2F
17 laboratories set up divided 5 area
（Manufacturing / Sensitivity / performance evaluation /advanced analysis / processing)
Heat & Sound Laboratory

1F Trial labs
(Molding machine /material development equipment)

Material development
equipment
Injection molding machine(2-axis extruder)P.22

R&D function improvement and strengthening(Corresponded to the transformation of the automotive industry)
Improvement of analysis / measurement accuracy

Linear expansion
measurement

Molecular
structure analysis

Thermalcharacteristics
measurement

Introduction of humidity temperature control
equipment in advanced analysis and physicalproperty measurement room
Various material analyzers
Transmitted sound andsound absorption measurement

Strengthening heat & sound developmentSoundmeasurement

Introduction of evaluation equipment

Heat transfer
measurement

Strengthening HMI development
Introduction of equipment to evaluate operationand visibility of Human-Machine Interface

Driving Simulator

Strengthening design and sensitivity capabilities
Introduction of virtual environment andestablishment of design studio
Algorithm

Introduction of tools to promote MBD / MBR development
P.23

virtualStrengthening of Co-Creation
Exhibit new products and technologies

Set up a space to create awareness and new ideas by sharing ideas forsolving challenges with various stakeholders
こんなとこまでプラスチック？！ ®
Can you tell? - It’s plastic !

P.24

Open innovation through industry-governmentacademia collaboration
Promotion of open innovation
・Accelerate joint research by taking advantage of the superiority for the distance to neighboring
universities and public testing and research institutions
Hiroshima
University

Higashi Hiroshima
City, Hiroshima

・Research on newmaterials and molding
technology

DaikyoNishikawa
Headquarters/Head plant

AIST, The National Institute ・Nanoscaleof Advanced Industrial
Science and Technology

Hiroshimatechno plaza

7km

visualization ofmaterial structures
・Evaluation of materials
and electronic devices
・Acquisition of expertise

HDI, Hiroshima Digital Innovation center
DMERC, Digital Monozukuri (Manufacturing)
Education and Research Center

DaikyoNishikawa
Hachihonmatsu
Plant・Utilization of advanced analysis tools
・Participation in government projects(MBR Consortium)

P.25

5. Sustainability Initiatives©DaikyoNishikawa Corporation All rights reserved.

P.26

Towards a sustainable society
Strengthen corporate management in line with ESG and SDGs
to contribute to a sustainable society through business activities Corporate responsibilities for worldwide sustainable society
are increasing, such as global climate change risks,environmental regulations, and strengthening diversity andcorporate governance Identify solutions that should be addressed as a player in theautomotive industry that handles resin products, andrestructure efforts to resolve these environmental issues
Social contribution through business activities by promoting thesustainability mind within the company and incorporating intobusiness activities©DaikyoNishikawa Corporation All rights reserved.

P.27

DaikyoNishikawa SDGs Statement
ダイキョーニシカワ SDGs宣言
DaikyoNishikawa
SDGs
Statement
ダイキョーニシカワ
SDGs宣言We support the SDGs and will contribute to the achievement ofsustainable society through our business activities.
当社はSDGsに賛同し、事業活動を通じて持続可能な社会の実現に貢献してまいります。
当社はSDGsに賛同し、事業活動を通じて持続可能な社会の実現に貢献してまいります。
Management
Philosophy
企業理念
企業理念
We will realize a company which placesemphasis on people, society and the
社員の幸福と繁栄を願い、人・社会・地球を大切にする企業を実現します。
earth,
in pursuit of happiness and prosperity of our employees.
社員の幸福と繁栄を願い、人・社会・地球を大切にする企業を実現します。
感動創造企業を目指し、技術開発と革新的なものづくりにチャレンジします。
We will make challenges to technological development and innovative
感動創造企業を目指し、技術開発と革新的なものづくりにチャレンジします。
企業倫理の徹底を図り、地域から信頼される企業を築きます。
manufacturing
by aiming to be a sensation creating company.
企業倫理の徹底を図り、地域から信頼される企業を築きます。

We will establish a company that gains the confidence of communities by
当社では企業理念のもとSDGsへ取り組んでいくことを宣言いたします。
thoroughly implementing our corporate philosophy.
当社では企業理念のもとSDGsへ取り組んでいくことを宣言いたします。

We declare that we will work on the SDGs based on management philosophy.

©DaikyoNishikawa Corporation All rights reserved.

P.28

Examples of Sustainability Initiatives 1：
Promotion of diversity
Improving work environment where diverse human resources arerespected for personality and evaluated fairly Women’s empowerment project

Our challenges :Reform in awareness for women‘s career advancement andunderstand the importance of women's empowerment
Measures：
1. Holding seminars for female employees and managers
2. Improving an employment environment that contributes to abalance between life and work
In addition to Women’s empowerment, we will promote efforts to
support the development of the next generation, the employment ofdiverse human resources, create rewarding workplaces, and focus on
initiatives that are even more conscious of diversity.
©DaikyoNishikawa Corporation All rights reserved.

P.29

Examples of Sustainability Initiatives 2：
Environmentally friendly manufacturing
Contributing to the formation of a recycling-oriented society throughenvironmentally friendly manufacturing Utilization of renewable energy such as solar power
generation, geothermal heat, rainwater, etc.
 Work in progress between processes and improvement ofenergy efficiency through straight line production, etc.
 Reduce CO2 emissions in terms of both fuel efficiency andmanufacturing process through weight reduction throughresignification
 Industrial waste reduction
 Saving petroleum resources bydeveloping bio-derived materials
 Green procurement©DaikyoNishikawa Corporation All rights reserved.

P.30

6. Efforts for Next Generation
Product Development©DaikyoNishikawa Corporation All rights reserved.

P.31

Efforts for Next Generation Product Development
Exhibited at AUTOMOTIVE ENGINEERING EXPOSITION 2021 ONLINELightweight parts composed by Cellulose Nanofiber

Next-generation Switching Panel・ Low specific gravity, high rigidity, and light weight・ Sustainable and renewable plant-derived materials

・ Crisp and user friendly icons appear
on soft leather-like epidermis
・ Accurate icon positioning by
DaikyoNishikawa’s uniquemanufacturing method

Cooling parts
・Cooling parts that are important for electrification
・Light weight and various shapes©DaikyoNishikawa Corporation All rights reserved.

P.32

Important Information
This presentation material contains certain statements describing the future plans, strategies,
and performance of DaikyoNishikawa Corporation and its consolidated subsidiaries. Thesestatements are not based on historical or present fact, but rather assumptions and estimates
based on information currently available. These future plans, strategies, and performances are
subject to known and unknown risks, uncertainties, and other factors. DaikyoNishikawa
Corporation’s actual performance, business activities, and financial position may differ materiallyfrom the assumptions and estimates provided on account of the risks, uncertainties, and otherfactors. The information contained on this presentation should not be considered as an offer, or
solicitation, to deal in any of the investments or funds.

Contact
DaikyoNishikawa Corporation
Corporate Planning Department
Phone: +81-82-493-5610©DaikyoNishikawa Corporation All rights reserved.

Product Information – Automotive Parts
Major ProductInstrument Panel

Sales by ProductBumperTotal: 150.2 billion yen (FY2020)
Other
Other
Interior Parts

Instrument
Panel

Engine Parts

For Mazda, Daihatsu,
and Mitsubishi (Indonesia)

For Mazda, Daihatsu,
and Honda

Priority Products
Back Door

Strategic Products
Oil Strainer

Other
BumperExterior
Parts Back
Door

Strategic Products
Fuel Saucer

Resin Share

No.1

For Daihatsu

For Mazda, Daihatsu, Toyota, Honda,
Nissan, Suzuki, and Mitsubishi (Thailand)

For Subaru,
Mazda, and Daihatsu

We manufacture instrument panels, bumpers, and other interior and exterior plastic parts. We also make engine parts, such as
oil strainers that require high heat resistance. Our main focus now is plastic automotive body shells and fuel saucer.
©DaikyoNishikawa Corporation All rights reserved.

Outline of Resin Back Door Growth for Daihatsu(Thousand Unit)

Approx.690

700

Approx.620 Approx.620

Approx.600

600
500
400

Started Mass
Production for
Daihatsu Asegment car

Approx.520

Approx.360

Expand in new
B-segment cars

Approx.310

300
200
Approx.110

1000FY2013

FY2014

Expand to B-segmentcars in addition to Asegment cars
FY2015FY2016FY2017FY2018FY2019We are also focusing on expanding sales to other than Daihatsu,
and aim to expand recruitment further.
©DaikyoNishikawa Corporation All rights reserved.

FY2020Outline of Management index
Operating Margin
30.0%

20.0%

ROE

24.5%
18.7%

17.9%

20.4%
14.7%

14.5%

10.0%

7.3%

9.2%

10.7%

9.2%

10.5%
7.9%

6.5%
3.3%

4.9%

0.0%

Consolidated Sales

200.0(Billions of yen)

184.3

182.2

171.9

180.0

160.7
160.0

155.6

150.2

134.3

140.0
120.0

3.0%

108.5

100.0
80.0

FY2013

FY2014FY2015©DaikyoNishikawa Corporation All rights reserved.

FY2016FY2017FY2018FY2019FY2020Sales ratio by customer
Changes in composition ratio spurred by customer diversification(Billion of yen)

2000

Mazda Series

Daihatsu Series

the others

1800
1600

13%
14%

1400

13%

1200

13%

14%

14%

15%

1000
800

10%
6%

600
400

76%

75%

FY2015FY2016

74%
79%

77%

78%

77%

77%

FY2017FY2018FY2019FY202075%200
0FY2012FY2013

FY2014©DaikyoNishikawa Corporation All rights reserved.