Consolidated Financial Results
Ended March 31, 2019
DaikyoNishikawa Corporation

May 22, 20192014年8月

目次

1. Company Outline

Page 2

2. Financial Results for Fiscal 2018

Page 8

3. Financial Forecast for Fiscal 2019

Page 15

4. New Facility Business Plan

Page 18

5. New Medium-Term Business Plan
FY2019~FY2022©DaikyoNishikawa Corporation All rights reserved.

Page 21

P.1

1. Company Outline©DaikyoNishikawa Corporation All rights reserved.

P.2

Corporate Profile
Comprehensive plastic manufacturer handling everything from design and development to production
 Company Name

DaikyoNishikawa Corporation
 Head Office
1-4-31 Kitashinchi, Saka-cho, Aki-gun,Hiroshima Prefecture, Japan
 Management Representative
Nariaki Uchida,President & Representative Director
 EstablishedApril 2007

Corporate History
Oct. 1953 Started producing automotive canvas tops

GP Daikyo Corporation
Oct. 1961 Started producing urethane foam

Nishikawa Kasei Co., Ltd.
Jul. 2004 Established 50/50 joint venture(Merger of three companies—GP Daikyo, Nishikawa Kasei, and former DaikyoNishikawa) Capital

5,426.65million Yen
 Business Domain Manufacture of automotive resin parts
 Production Sites Japan (15) China (2) Thailand (2)Indonesia (1) Mexico (1)Note: Not including production sites of affiliated companies accounted for by the equity method.

 Number of Employees

DaikyoNishikawa Corporation
16.7%
5.5%
5.5%
5.0%
5.0%
5.0%

*The above shareholding ratio is calculated by deducting 3,042,930 shares of treasury stock fromthe total number of issued shares.

©DaikyoNishikawa Corporation All rights reserved.

Joint Venture Purpose• Adapt quickly to changing industry• Build strong business base to be globallycompetitiveApr. 2007 Established

5,265 (as of March 31, 2019)
 Major Shareholders (as of September 30, 2019)
Nishikawa Rubber Co., Ltd.
INOAC Corporation
Mitsubishi Corporation Plastics Ltd.
Sumitomo Corporation
The Hiroshima Bank, Ltd.
Mazda Motor Corporation(former) DaikyoNishikawa
CorporationP.3

Global Operating BasesDeveloping business in four major global regions (Japan, China/Korea, ASEAN,and the Americas) to build solid operating foundation《Production》
DaikyoNishikawa Auto Parts(Changshu) Co.,Ltd.

China/Korea(Changshu, China)《Design and development》
GP Daikyo Korea Corporation(Gyeonggi-do, Korea)

Japan《Production》
DaikyoNishikawa TongYang AutoParts (Nanjing) Co., Ltd.

DaikyoNishikawa Corporation(Nanjing, China)

9 production sites (in Hiroshima, Yamaguchi, Mie, and Oita)
and 5 affiliated companies (in Hiroshima, Tochigi, and Shiga)《Production》
Changchun Wanlong
DaikyoNishikawa Auto Parts Co., Ltd.
(Changchun, China)(affiliated company accounted for by the equity method)(Shanghai, China)《Production》
Ru Yang Industry Co., Ltd.
(Taiwan)(affiliated company accounted for by the equity method)

ASEAN《Production》

DMS Tech Co., Ltd.
(Samutprakarn, Thailand)《Production》
DaikyoNishikawa (Thailand) Co., Ltd.
(Rayong, Thailand)©DaikyoNishikawa Corporation All rights reserved.

《Production》
PT. DaikyoNishikawa
Tenma Indonesia(Karawang, Indonesia)

P.4《Production》
DaikyoNishikawa
Mexicana, S.A. de C.V.
(Guanajuato, Mexico)

Americas《Design and development》
DaikyoNishikawa Auto Parts(Shanghai) Co., Ltd.

Product Information – Automotive Parts
Major ProductInstrument Panel

Sales by ProductBumper

Total: 184.3 billion yen (FY2018)
Other
OtherInterior
Parts

For Mazda, Daihatsu,
and Mitsubishi (Indonesia)

For Mazda, Daihatsu,
and Honda

Replacing Metal
with Plastic
Intake manifold

Strategic Products
Oil Strainer

Instrument
PanelEngineParts
BumperOtherExteriorPartsBackDoorPriority ProductsBack Door

Resin Share

No.1
For Daihatsu, Toyota, Mazda,Subaru, and Mitsubishi

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

For Daihatsu

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

P.5

Outline of Resin Back Door Growth for Daihatsu
Expand to Small
Car in addition toMini Car(Thousand Unit)

700

One Round of Adoption for
Major Models to flat Trend

Approx.620

Approx.620

FY2017FY2018600
500

Approx.520

Started Mass
Productionfor Daihatsu

400

Approx.360

Approx.310

300
200
Approx.110

1000

FY2013

FY2014©DaikyoNishikawa Corporation All rights reserved.

FY2015FY2016P.6

Outline of Operating Performance
Consolidated Sales

Operating Margin

Operating Margin

300.0
10.7%

(Billion yen)

200.0

9.2%

9.2%

250.0
ConsolidatedSales

10.0%

10.5%

7.3%

7.9%

5.1%
3.8%

184.3
160.7

150.0

171.9

5.0%

0.0%

155.6

134.3

-5.0%

108.5100.0

83.787.7-10.0%

50.0-15.0%

0.0-20.0%

FY2011FY2012FY2013©DaikyoNishikawa Corporation All rights reserved.

FY2014FY2015P.7

FY2016FY2017FY2018

2. Financial Results for Fiscal 2018

©DaikyoNishikawa Corporation All rights reserved.

P.8

Consolidated Profit and Loss Statement(Millions of yen)

Financial
Results Ended
Mar. 31, 2018

Financial
Results Ended
Mar. 31, 2019

Net Sales

171,967

184,314

12,346

7.2%

Operating
Income18,052

14,621-3,430-19.0%

Ordinary Income

18,742

14,836-3,906-20.8%Net Income
Attributable toOwners of Parent12,464

10,402-2,062-16.5%

Operating Margin

10.5%

7.9%

-2.6Pts－Net Income perShare

175.94Yen

146.82Yen-29.12Yen－Changes(Y on Y)

Changes (%)

Despite the increase in sales due to the favorable sales to customers, the profit
decreased due to the impact of heavy rain in West Japan, various measures forworking style reform, and costs for production preparation©DaikyoNishikawa Corporation All rights reserved.

P.9

Sales by Region
Net sales to outside clients

Domestic

Financial
Results Ended
Mar. 31, 2018

Financial
Results Ended
Mar. 31, 2019

134,633(78.3)

145,132(78.7)（0.4Pts）

China/Korea

8,176

8,428

252

3.1%

ASEAN

10,407

13,224

2,817

27.1%

Americas18,75017,528-1,222-6.5%

Sub total

37,333(21.7)

39,180(21.3)

1,847（-0.4Pts）

171,967

184,314

12,346

Japan(component ratio)

Overseas(Millions of yen)(component ratio)

Total

Changes(Y on Y)

10,499Changes
(%)

7.8%

4.9%
7.2%

Sales increased due to good sales to major customers, except Central
American and North American segment©DaikyoNishikawa Corporation All rights reserved.

P.10

Operating Income by Region(Millions of yen)Domestic

Overseas

Financial
Results Ended
Mar. 31, 2018

Financial
Results Ended
Mar. 31, 201913,079(70.6)

11,789(80.4)（9.8Pts）

China/Korea

1,456

708

-747

-51.4%

ASEAN

1,138

1,404

266

23.4%

Americas

2,854

765

-2,089-73.2%Sub total

5,448(29.4)

2,877(19.6)-2,571（-9.8Pts）

18,52914,668-3,861

Japan(component ratio)(component ratio)

Total

Changes(Y on Y)

-1,289Changes(%)-9.9%-47.2%-20.8%

Decreased profits except ASEAN segment due to the effects of heavy
rain in West Japan, measures for working style reform, mass production
preparation costs, and depreciation costs for capital investment©DaikyoNishikawa Corporation All rights reserved.

P.11

Reasons for Increase or Decrease inConsolidated Sales(Millions of yen)
190,000△1,115
185,000△16△42180,000

13,520175,000

184,314170,000

171,967
165,000©DaikyoNishikawa Corporation All rights reserved.

要具売
上

その他
売
上

P.12

為替
影響

19.3

18.3
期
売
上
高製品
売
上

期
売
上
高

Reasons for Increase or Decrease inConsolidated Operating Income(Millions of yen)
20,000-effects of heavy rain in West Japan-measures for working style reform-mass production preparation costs

768
18,000△1,81916,000△2,676
18,052△44214,000△12751
14,621

12,000要具
利益©DaikyoNishikawa Corporation All rights reserved.

コス
ト改善／
悪化

減
価
償
却
費

P.13

為替
影
響

その他
費
用

19.3

18.3
期
営
業
利益

台数・製品
構
成

期
営
業
利益

FY 2018 Forecast vs. Result
Upward correction from the Forecast as of Nov. 6(Millions of yen)

FY2018ForecastChangesChanges(%)

Net Sales

180,000

184,314

4,314

2.4%

Operating
Income14,00014,621621

4.4%

Ordinary Income

14,00014,836836

6.0%

Net Income
Attributable toOwners of Parent

9,600

10,4028028.4%

OperatingMargin

7.8%

7.9%

0.1Pt

135.49Yen

146.82Yen

11.33Yen

Net Income perShare

©DaikyoNishikawa Corporation All rights reserved.

P.14

－
8.4%

Landed almost as planned(As of Nov. 6)

FY2018Result3. Financial Forecast for Fiscal 2019

©DaikyoNishikawa Corporation All rights reserved.

P.15

FY2019 Forecast(Millions of yen)

FY2018FY2019Forecast

ChangesChanges(%)

Net Sales

184,314

193,0008,686

4.7%

Operating Income

14,621

10,600-4,021-27.5%

Ordinary Income

14,836

10,700-4,136-27.9%

Net Income
Attributable toOwners of Parent

10,4026,900-3,502-33.7%

Operating Margin

7.9%

5.5%

-2.4Pts－Net Income perShare

146.82Yen

97.38Yen-49.44Yen-33.7%

Profits are expected to decline due to depreciation of capital investment associated withorders for new-generation products, increased preparation costs for mass production,and costs associated with the promotion of working style reform©DaikyoNishikawa Corporation All rights reserved.

P.16Capital Investment, Depreciation and R&D Expenses≪Capital Investment≫※FY2019: Plan

35
(Billions of yen)

≪R&D Expenses≫≪Depreciation≫※FY2019: Plan
(Billionsof yen)
14

※FY2019: Plan

5
(Billions of yen)

30
(initial plan) 27.0
25.6

124
11.0

25

10

9.3

9.1

20
16.4

15.4

15
10

13.1

8

9.0

3.3

3.2

9.5

3

2.9

2.9

3.0

3.0

7.8

62

9.2
7.2

50

Capital investment for the newhead office / head office plant has
been delayed to FY2018

41200

Depreciation of head office plant
started in FY2019©DaikyoNishikawa Corporation All rights reserved.

P.17

Higher development costs fornext-generation products

4. New Facility Business Plan

©DaikyoNishikawa Corporation All rights reserved.

P.18

Outline of US New Factory

Facility Name

DaikyoNishikawa USA Inc./Alabama Plant (DNUS)

Line of Business

Manufacturing and marketing of automotive resin parts

Main Production Items

Large resin parts such as Bumpers and Instrument Panels

Location

Huntsville, Alabama, USA. next to MTMUS

Construction start

July, 2019 (plan)

Start of production

CY2021 (plan)

Investment amountApprox. 110million US dollars (plan)

EmploymentApprox. 380(plan)©DaikyoNishikawa Corporation All rights reserved.

P.19

Outline of US New Factory
DaikyoNishikawa USA Inc. (DNUS)
new factory will produce large resin parts for vehicles manufactured at Mazda Toyota
Manufacturing, U.S.A., Inc.（MTMUS): 150 thousand unit each per year

For MAZDA

Aiming for annual sales of around US $ 190 million as thesecond base of the Central America and North America

For TOYOTA

DNUS
Plannedconstruction site

MTMUS
Planned construction site

Image source：MTMUS©worldatlas©DaikyoNishikawa Corporation All rights reserved.

P.20

5. New Medium-Term Business Plan
FY2019~FY2022©DaikyoNishikawa Corporation All rights reserved.

P.21

Review of the Previous Medium-Term Business plan

FY2018 Target on

FY2018 Result

Ex-Mid-Term Business Plan
Consolidated Sales

Consolidated Sales

160Billion Yen

184.3Billion Yen

Achieved

Operating Income Margin

Operating Income MarginMore than 8%

7.9%
Not Achieved

Return of Equity(ROE)

Return of Equity(ROE)

More than 10%

14.7%

Achieved

Sales and ROE exceeded the targets, but the operating income margin
shorted by 0.1% all tried to recover©DaikyoNishikawa Corporation All rights reserved.

P.22

Medium-Term Business StrategiesChallenging Creative and Innovative Technology Development
1. Customer Satisfaction Strategy-Obtain sustained orders by proposing developments in strategic products-Full response to customer needs and global diversification

2. Product Strategy-Develop core competency for added value products-Pursue IT innovation, MBD and development process innovation

3. Manufacturing Strategy-Establish quality exceed up above customer expectation-Establish Optimal production and procurement method

4. Location Strategy-Boost intra-group collaboration to secure stable earnings at each location

5. Management base strategy-Establish cooperate brand through strengthening CSR, environmental measures, and local
contribution-Strengthening the structure to support employees to improve their work experience©DaikyoNishikawa Corporation All rights reserved.

P.23

Medium-Term Business Targets
Business Plan for FY2022
Consolidated Sales

Operating Income Margin

Return of Equity(ROE)

210 Billion Yen

More than 8.0％

More than 10.0％

Operating Income Margin

12.0%
10.0%
8.0%
6.0%
4.0%

210.0

220.0
(Billions of yen)
200.0

Consolidated Sales

193.0

184.3
171.9

180.0

160.7
160.0

155.6

134.3

140.0

120.0

More than 8.0%

108.5

100.080.0

FY2013

FY2014FY2015©DaikyoNishikawa Corporation All rights reserved.

FY2016FY2017P.24

FY2018FY2019FY2022

ForecastPlan

Medium-Term Business Plan by Region
FY2018ResultFY2022
Plan

Consolidated Oversea
SalesOversea
海外
セグメント

Domestic

Operating
IncomeDomestic

Oversea

海外
Oversea
セグメント

Domestic

Domestic

Plan to increase overseas segment sales/income mainly from North America©DaikyoNishikawa Corporation All rights reserved.

P.25

Approach to Next-Gen. Product Development
Lift Gate and Cockpit module Prototype

Exhibit at AUTOMOTIVE ENGINEERING EXPOSITION 2019 YOKOHAMA
Wednesday, May 22 through Friday, May 24, 2019Booth Number295©DaikyoNishikawa Corporation All rights reserved.

P.26

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 aresubject 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, orsolicitation, to deal in any of the investments or funds.

Contact
DaikyoNishikawa Corporation
PR/CSR Department
Phone: +81-82-885-9979©DaikyoNishikawa Corporation All rights reserved.