FY2021 First Half Financial Results
Tsutomu Hiranaka, President & COO
Yorozu Corporation
This is an internal English translation of the YOROZU FY2021 First Half Financial Report issued in the Japanese language andis provided solely for the convenience of English speaking readers. In case of discrepancy the Japanese version prevails.

The first section of the Tokyo Stock Exchange (Securities Code: 7294)

Contents

Ⅰ. FY2021 Second Quarter Financial Summary
Ⅱ. FY2021 First Half Results
Ⅲ. FY2021 Annual Forecast
Ⅳ. Progress of YSP2023
Ⅴ. Shareholder Return© YOROZU CORPORATION. 2021 All Rights Reserved.

2

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FY2021 Second Quarter Financial Summary
1H Results

・Strong recovery in global automotive production boosted increase inboth revenue and profit year-over-year.
・In the second quarter, the impact of semiconductor and part shortage
and re-emerging novel coronaviruses mainly in Southeast Asian
countries triggered a sharp drop in production volume, which led to alarge decline in sales and profits compared to the latest announcement.
2H Outlook

・We have revised the financial forecast downward in consideration of
uncertainties in semiconductor shortage and car production recovery.
・We will steadily move forward along with YSP2023 by strengthening
our initiatives to fulfill the needs of customers and society and torespond to accelerated decarbonization.
Shareholder Return

・Payment of an interim dividend of 6 yen and year-end dividend of 7
yen per share is planned.
© YOROZU CORPORATION. 2021 All Rights Reserved.

3

Contents

Ⅰ. FY2021 Second Quarter Financial Summary
Ⅱ. FY2021 First Half Results
Ⅲ. FY2021 Annual Forecast
Ⅳ. Progress of YSP2023
Ⅴ. Shareholder Return© YOROZU CORPORATION. 2021 All Rights Reserved.

42

Consolidated Financial Summary for 1H FY2021 (Year-on-Year)

Million yen

1H FY20

1H FY21Year-on-Year

LatestForecast for1H 2021*2

AgainstLatestForecast

Sales

43,93060,049+36.7%

64,000-6.2％

Operating Income-4,160

277

ー

850

-67.4％

Ordinary Income-3,615

307

ー

900

-65.8％Net Income *1-3,234

-129

ー

250

ー

*1 Net income attributable to parent company shareholders

FY2020A

FY2021B*2 Estimated figures as of August 5, 2021

Difference
B-A

Percentage
of Change

Net Income per Share-135.40 yen-5.41 yen＋129.99

ー

Exchange Rate Applied toConsolidated Statements

108.23 yen/$

107.82 yen/$-0.41 yen/$-0.4%

 Sales: Increased after recovery in demand in the automotive industry
 Operating income: Turned a profit after the sales increase and fixed cost reduction
 Ordinary income: An increase in revenue and employment adjustment subsidy
boosted profits Net income: Improved significantly year-over-year despite of losses attributable tocorporate income tax, etc.
5

© YOROZU CORPORATION. 2021 All Rights Reserved.

Consolidated Sales by Customer (1H FY20 vs. 1H FY21)
Million yen

Million yen

70,00060,04960,00050,00043,930ToyotaToyota30,000

Honda

Nissan20,000

FY2020(%)

FY2021(%)

26,996

61.5%

37,065

61.7%

Honda Gr.

7,857

17.9%

9,832

16.4%

+1,193（+41.8％） Toyota Gr.

Honda

40,000

Customer
Nissan Gr.*

Nissan

2,856

6.5%

4,049

6.7%

+1,975Isuzu（+25.1％）

1,710

3.9%

2,603

4.3%

Mazda

1,091

2.5%

1,436

2.4%

+10,069（+37.3％） Kubota

873

2.0%

1,379

2.3%

Daimler

361

0.8%

949

1.6%

VW

530

1.2%

825

1.4%

Suzuki

417

0.9%

676

1.1%

Others

1,239

2.8%

1,235

2.1%

Total

43,930 100.0%

60,049 100.0%

10,000* Includes sales to Renault and Mitsubishi
0

1H FY2020

1H FY2021© YOROZU CORPORATION. 2021 All Rights Reserved.

 Recovery in demand boosted
sales at all customers
63Analysis of Impact on Consolidated Operating Income(1H FY20 vs. 1H FY21)

Million yen

Transfer ofextraordinary losses
from Covid-19

2,000.043

384

Exchange
rate
Consolidation
effectadjustment

1,000.0

1,167

-970

Profit from die
equipment

-448
277

0.0

1,332

Cost-saving
efforts-1,000.0

Depreciation-2,000.0-4,1602,929-3,000.0-4,000.0

Sales
increase-5,000.0

1H FY2020
1H FY2021
Operating Income (+4,437)
Results
Results
Become profitable on the back of an increase in sales that owes to recovery fromthe impact of Covid-19, a decrease in depreciation, and steadily implemented
cost-saving measures, compared with the same period a year earlier
7© YOROZU CORPORATION. 2021 All Rights Reserved.

Sales and Operating Income by Region (Before Consolidation Adjustment, 1H FY20 vs. 1H FY21)

Japan

AmericasAsia+1,163+7.6％+6,744+39.9％+6,176+37.8％◆SalesMillion yen

40,00020,000023,666

15,233 16,396

16,922

FY20

FY20

FY21

16,346

FY21

FY20

Difference% of Change

22,522FY21◆Operating Income
Million yen

2,000+1,044--％+1,545--％+1,469--％730

0-2,000-4,000-121-1,165
FY20

-546

-739

-2,091
FY21

FY20

FY21

FY20

FY21

Sales increased in all segments compared to last year that was severely affected by Covid-19
 Japan: Significant improvement after increases in part sales and royalty fees despite a net loss Americas: Minimized losses for the sake of recovery in demand and improvement in the US and Mexico
 Asia: Brought the bottom line back in black mainly because of demand recovery in China© YOROZU CORPORATION. 2021 All Rights Reserved.

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4

Financial Standing for the first half of FY2021
Difference (B-A)(Million yen)Mar. 31, 2021 A

Sep. 30, 2021 B

Net Worth

53,38355,139＋1,756

3.3％

39.6％

41.3%

--

--

Equity Ratio

D/E ratio

0.84

44,7690.72

39,821-4,948-11.1%

0.29

15,509

0.16

8,651

-6,858-44.2%

134,723

133,468-1,255-0.9%

1H FY2020 A(Accumulated)

1H FY2021 B(Accumulated)

Cash Flow fromOperating Activities

6,491

10,669＋4,178Cash flow from
Investing Activities-4,420-3,902＋518--

Cash Flow from
Financing Activities-904-7,188-6,284--

Interest-bearing Debt
NET D/E Ratio

Net Interest-bearing Debt

Total Assets(Million yen)

Difference (B-A)
64.4%

The net interest-bearing debt and the net D/E ratio were reduced largely and
FCF was positive due to suppressed capital investment
9© YOROZU CORPORATION. 2021 All Rights Reserved.

(Reference) Consolidated Balance Sheet Summary 1H FY2021

Million yen
Current Assets

Mar. 2021 A

Sep. 2021 B

63,72162,589Diff B-A-1,132

Cash & bank deposit +1,910
Notes & accounts receivable -4,520
Inventories＋1,889Tangible fixed assets
Deferred tax assets

-634
＋328

71,00170,878-123

134,723

133,468-1,255Current Liabilities

39,33140,037＋706

Long term debts due within 1 year

Fixed Liabilities

29,65325,506-4,147

OthersFixed Assets
Total Assets

Notes and accounts payable -2,797
Electronically recorded obligations+293

68,98465,543-3,441

Shareholders’ Equity

61,295

61,148-147

Accumulated Other
Comprehensive Income-7,912-6,008+1,904

Total Liabilities

Non-controlling interest,
etc.

Total Net Assets
Total Liabilities and Net Assets

12,355

12,784＋429

65,73867,924+2,186

134,723

133,468-1,255© YOROZU CORPORATION. 2021 All Rights Reserved.

-914+4,167

Long term debts-3,933

Net income (loss)

-129
-311

Dividend payment

Earned surplus corrected at thestart of the fiscal year＋201

Foreign currency translation
adjustment+1,883

10

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Contents

Ⅰ. FY2021 Second Quarter Financial Summary
Ⅱ. FY2021 First Half Results
Ⅲ. FY2021 Annual Forecast
Ⅳ. Progress of YSP2023
Ⅴ. Shareholder Return

11© YOROZU CORPORATION. 2021 All Rights Reserved.

FY2021 Automotive Output Trend
Global Auto Production & Demand Forecast Source: OICA
87.00

Reduced byaround 10％

Million units

As of Jan.
2021

As of Apr.
2021

76.88

As of Jul.
2021

主要顧客生産台数推移（Q単位）
Changesin Output Units of Major Customers (Quarterly)
-23%

85.06

86.53

77.62

2020
ActualMarkLines

2021 annual (forecast)2020 annual(-18%)

｟-6%｠

計画
Plan
実績・予測
Actual/Forecast

As of Oct.
2021

Major Customers’ Output Units in FY2021(Estimated by Yorozu)
Reduced byaround 11%
Domestic
Overseas
As of Nov. 2020

As of Jun. 2021

As of Sep. 2021

As of Oct. 2021

1QQ1実績
Actual2Q
ActualQ2実績

3QQ3予測Forecast

4Q
Forecast
Q4予測

Apr.-Jul.: Car makers has adjusted production due to concerns over semiconductor shortagein the first half but stay on the yearly output target, expecting recovery in production in
the latter half
Aug.-Sep.: Adjustment of production occurred frequently and globally on a weekly basis ascompositively affected by re-emerging novel corona viruses in Southeast Asia
Q3 (Forecast): A decrease in production will continue in October and beyond while
improvement in the situation is anticipated
Q4 (Forecast) Recovery plans cannot be formulated due to long-term uncertainties© YOROZU CORPORATION. 2021 All Rights Reserved.

126

FY2021 Consolidated Financial Forecast Summary◆Profit and Loss (Year-on-Year)FY2021

Difference

FY2021

Difference

Forecast(Year-on-Year)

Forecast*2

from Forecast

FY2020Results

Million yen

118,863

126,000 (＋6.0%) +7,137

130,000-4,000Operating Income

377

1,260 (＋234.2%) +883

3,900

-2,640Ordinary Income

1,449

1,240

-209

3,600

-2,360Net Income *1-6,195650+6,8451,800-1,150Sales

FY2020 Results
Net Income per Share
Exchange Rate Applied toConsolidate Statements(-14.4%)FY2021 Forecast

Difference% of Changes-259.07 yen

27.09 yen+286.16 yenー

106.76 yen/$

108.50 yen/$+1.74 yen/$+1.6%*1 Net income attributable to the parent’s shareholders*2 Estimated figures disclosed on Aug. 5, 2021

Sales: Will barely secure 6% growth in 2H (YOY) during the impact of semiconductor shortage
Operating income: A significant increase is expected owing to the cumulative profit kaizen effects while
recovery of production is likely to be not strong
Ordinary income: Will remain at the same level as the operating income due to foreign exchange losses(exchange profits were posted in FY2020) and a decrease in employment adjustment subsidy
Net income: Will be profitable with significant recovery from FY2020 in which impairment losses occurred
13© YOROZU CORPORATION. 2021 All Rights Reserved.

Consolidated Sales by Customer (FY20 Results vs. FY21 Forecast)Million yen

Million yen
160,000

126,000

140,000

118,863
120,000

100,000

80,000ToyotaToyota

Honda

Honda

FY2020(%)

FY2021(%)

Nissan Gr.*75,994

63.9%

77,04061.1%

Honda Gr.

20,07016.9%

20,907

16.6%

Toyota Gr.

7,191

6.0%

8,500

6.7%

4,188

3.5%

5,117

4.1%

2,855

2.4%

3,286

2.6%

Kubota

2,027

1.7%

3,001

2.4%

Daimler

1,539

1.3%

1,865

1.5%

1,576

1.3%

1,779

1.4%

Suzuki

1,068

0.9%

1,373

1.1%

Others

2,355

2.1%

3,132

2.5%

+1,309(+18.2%) Isuzu

+837
Mazda
（+4.17％）+1,046（+1.4％） VW

60,00040,000

Customer

NissanNissan20,000Total

118,863 100.0%

126,000 100.0%* Includes sales to Renault and Mitsubishi
0

FY2020 Actual

FY2021 Forecast© YOROZU CORPORATION. 2021 All Rights Reserved.

 Sales to all customers, especially Honda andToyota, will increase Thus, Nissan’s composition ratio will become
lower than FY2014

7

Analysis of Impact on Consolidated Operating Income(FY20 Results vs. FY21 Forecast)Million yen
4,000Transfer ofextraordinary losses
from Covid-19
3,000

242

35

Cost-saving
efforts

Exchangerateeffect-966

Profit fromdieequipment

2,000

-678

2,409

Consolidation
adjustment Changes in

sales

-159

0

1,000

1,260
377

Depreciation

0

FY2020Results

FY2021
Forecast

Operating Income (＋883)

A significant increase is expected for the year through decreasing fixed costs
such as depreciation and effective cost-savings although profit growth is not
likely to occur due to uncertainties in sales recovery
15© YOROZU CORPORATION. 2021 All Rights Reserved.

Sales and Operating Income by Region(Before Consolidation Adjustment)(FY20 Results vs. FY21 Forecast)◆SalesJapan

Americas

Asia

Million yen

-325
-0.8％

+1,081+2.4％+3,459+7.8％

100,000
50,00039,79839,47344,82945,91044,24047,699

FY20

FY21

FY20

FY21

FY20

FY21

0

Changes/% ofChange◆Operating Income-311-27.4％

Million yen＋1,572---369-26.2％

5,000
1,136

825

1,407

1,038

FY20

FY21

0
-5,000-2,502
FY20

FY21

FY20

-930
FY21

 Japan: A profit fall is expected due to a decrease in sales of die equipment and impact of
output reduction by automakers
 Americas: Improvement in the US market and a fixed cost cut will effectively cover substantial
decrease in earnings
 Asia: A profit fall is expected due to new model launch costs and output reduction in China© YOROZU CORPORATION. 2021 All Rights Reserved.

168

Capital Investment and Depreciation
Capital Investment by Region

Depreciation by Region

Million yen

25,00020,000Japan

Americas

Asia

Japan

AmericasAsia

20,013

15,451
15,00011,915

11,216

12,075

12,522
10,246

10,000

8,856
7,219

6,666

5,000

0
FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

© YOROZU CORPORATION. 2021 All Rights Reserved.

17

Contents

Ⅰ. FY2021 Second Quarter Financial Summary
Ⅱ. FY2021 First Half Results
Ⅲ. FY2021 Annual Forecast
Ⅳ. Progress of YSP2023
Ⅴ. Shareholder Return© YOROZU CORPORATION. 2021 All Rights Reserved.

18

9

Medium-Term Business Plan Yorozu Sustainability Plan 2023
Consolidated Performance Goals (FY2023)
Sales
150.0 billion yen

Operating Income
Ratio 5.0%

(FY2020 actual 118.8 B yen)

(FY2020 actual 0.3%)

ROE 8.0%(FY2020 actual –11.0%)

Management Policy
Engage in sound management that is resilient to changes(1) ESG Management(2) Stable Profit(3) New Technologies/Methods

Medium- to long-term sustainablegrowthPromotion of DX (digital transformation) aimed
at changing the corporate culture• Shift to optimum production
capacity• Develop products with high added
value through weight reduction• Recreate a strong gemba• Propose products for EVs• Strengthen cash flow
management• Engage in proactive sales
expansion in 3 axes (customers,
products, regions)• Ｅ: Engage in earth-friendly monozukuri• Ｓ: Create a healthy and engaging
workplace• Build a robust corporate
structure that is less affectedby production volume• Ｇ: Realize highly transparent
governance• Expand external sales of
production equipment such as diesand tooling

19© YOROZU CORPORATION. 2021 All Rights Reserved.

Medium-Term Business Plan

Yorozu Sustainability Plan 2023

Topics for First Half of FY2021
Policies
Overall

Topics for the First Half of FY2021

Page●Published Integrated Report (Sep.)

ESG Management●Formulated and publicized Environmental Vision 2040 (Aug.)
Environmental●Expressed our support for the TCFD recommendations (Sep.)

Social●Implemented measures to establish the way to be moreengaged at work rather than the work style reform

21

Governance●Officially announced listing on TSE Prime Market as ourcompliance with the criteria was approved (Aug.)

23

DigitalTransformation●Officially announced Yorozu’s DX Initiatives (Aug.)

24●Production system that ensures “squeeze & stop” to copewith decreases in volume●Kept production running during Covid-19 pandemic

26

Stable Profit●Accelerated the schedule of Project Revenue Management

New Technologies/Methods●Established low emission technologies through LCA tocontribute to society and customers
・CO2 reduction by lightweighting products
・CO2 reduction by replacing materials© YOROZU CORPORATION. 2021 All Rights Reserved.

28
20

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Medium-Term Business Plan

Yorozu Sustainability Plan 2023

Social: Create a Healthy and Engaging Workplace
From Work Style Reform to How to be More Engaged at Work
Systems to Help Feel Fulfilled at Work・Clarify the evaluation system
and goals (set the KPI)・Enhance the proposal system(culture of praise)・Continue offering teleworking
・Introduce flexible working hours
without core hours
・Pay a working from home allowance
・Pay actual cost for commuting allowance

Workplace Environment
・Modernize office layout
・Remote working systems
・Allocate IP phone number
on an individual basis in
HQ (Yokohama and Oyama)

Coexistence with Local Communities
・Buy lunch from local welfare facilities
・Explore lending solutions for office floorsthat remain empty

・Increase motivation
・”I want to continue working at this company”
・”I’m happy to work here”
・Create the workplace that gives everyone
a feeling of fulfillment
21© YOROZU CORPORATION. 2021 All Rights Reserved.

Medium-Term Business Plan

Yorozu Sustainability Plan 2023

Social: Create a Healthy and Engaging Workplace(Supplementary Information)

Maintain and Improve the Ratio ofMale Employees Who Take Childcare Leave
Only 12.6% of Japanese male workers took the paternity leave in
FY2020, according to the Ministry of Health, Labor and Welfare
The government’s target: 30% by FY2025
Ratio of male workers who take

【Steps taken to help men go on paternity leave】
・Set up the General Employers Action Plan・Raise awareness in the house journal
・Training programs for managers
Government ・Posted on the intranet site

66.6%

paternity leave at Yorozu

33.3%

goal: 30.0%
15.4%

FY19

Reasons behind a Successful Working Dad

Average inJapan: 12.6％

FY20

1H FY21© YOROZU CORPORATION. 2021 All Rights Reserved.

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Medium-Term Business Plan

Yorozu Sustainability Plan 2023

G: Governance – TSE Prime Market and the Revised CG Code・Compliance with the TSE Prime Market listing criteria : Application for selection filed
Item

Liquidity

GovernanceContinued Listing Requirements

Number of tradable
sharesAt least 20,000 units

Tradable sharemarket capital

At least JPY 10 billion

Trading value

At least daily avg. JPY 20 million

Tradable share ratio

YorozuPrimary
judgmentAllrequirements
were met

At least 35%

・Response to revised CG Code: Independence of the function of the Board of Directors
Independent Outside Directors

4 out of 9 directors are outside directors

Nomination Committee

Chair: Masashi Oshita (Outside Director)
4 out of 7 members are outside directors

Compensation Committee

Chair: Chieko Ogawa (Outside Director)
4 out of 7 members are outside directors
23© YOROZU CORPORATION. 2021 All Rights Reserved.

Medium-Term Business Plan

Yorozu Sustainability Plan 2023

ESG Management – DX Promotion LevelDX Promotion Level
A2D（Analog to Digital）
Digitization

V-DX（Vertical）
Digitalization

H-DX（Horizontal）
Digital Transformation (DX)

Purpose and Method
Delete analog data permanently
Digitization of information
Make individual work more efficient
Digitalization of working process
Reduce lead time drastically in across-organizational manner
Digitalization of entire work/
manufacturing process

Create added value and new services
that make us continue to win© YOROZU CORPORATION. 2021 All Rights Reserved.

24

12Medium-Term Business Plan

Yorozu Sustainability Plan 2023

DX Initiatives – Status of Activities
Bottom-up

Create added value and new services

DX Work Revolution
Committee【Production preparation】 Shorter lead time
We can see the CURRENT preparation situation

H|【Production plant】 Smart factory innovation

DX

We can see the CURRENT production situation【Back office】 Indirect operation reform
We can see the CURRENT management situation
Yorozu defines H-DX as one of
the DX activities aimed at
drastically reducing lead times
across the organization.

DX proposals are sought(4,680 ideas submitted as of Nov. 16)

at all Yorozu global sites

Top-down

25© YOROZU CORPORATION. 2021 All Rights Reserved.

Medium-Term Business Plan

Stable Profit
Slightdecrease

Customer
3-monthforecast

Yorozu Sustainability Plan 2023

Building a robust corporate structure
not easily affected by production volume

Shortage of semi-conductors in thelatter 2Q led to a significant drop in
the production of auto parts at allsites.

Decrease by
several tensof percent
Decrease by
several tensof percent

Situation characterized by:・Last minute changes (decrease)・Dramatic change to the firm orderin the delivery month・Frequent adjustments to staffing
required

Actual2 months 1 month
beforebeforeCurrent
month

Keep costs down by adopting a “squeeze & stop” system
to cope with the fluctuation in production volume
ExampleWeek●Operating day

Mon

Tue

Wed

Thu

Fri

Customer

●

●

●

●

●

Yorozu●●●Squeeze & stop××
production© YOROZU CORPORATION. 2021 All Rights Reserved.

26

13

Medium-Term Business Plan

Stable Profit

Yorozu Sustainability Plan 2023

Production amid COVID-19 Pandemic

Thorough infection prevention measures considering regional factors were taken andvaccination was advised to ensure the safety of employees. Closer communication wasestablished between HQ and sites to ensure effective remote support at launch.

China

Japan
U.S.

FranceData not collected
for privacy reasons

India
MexicoThailandIndonesia

BrazilRate of persons who have received at least the first dose of a COVID vaccine
among those wishing to be inoculated (as of Nov. 8)27© YOROZU CORPORATION. 2021 All Rights Reserved.

Medium-Term Business Plan

Yorozu Sustainability Plan 2023

New Technologies/Methods – Life Cycle Assessment (LCA)

Accelerate development of products that
contribute to reducing CO2 emissions
Materials
from steel
makersIn-house
production

Customers

Recycling

When cars
are driven

RecycleBlast furnace

Supplier

YorozuCustomer

Reduce emissions

Reduce emissions

Contribute to reduction© YOROZU CORPORATION. 2021 All Rights Reserved.

1

28

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Medium-Term Business Plan

Yorozu Sustainability Plan 2023

Achieving Carbon Neutrality in the Production Process

Improved energy efficiency

Renewables such as solar power●

CO2 emissions reduction line

Purchasing zero-carbon power

CO2 emissions from electricity use

Fuel conversion

CO2 emissions from fuel use（ CO2 -50％）

2013（ CO2 -100％）2030

Zero CO2 emissions in the production process

CO2 emissions without kaizen

2040

 Carbon Neutral Challenge 2040
 2030 Milestone: Reduce CO2 emissions by 50% (from the 2013 level)
29© YOROZU CORPORATION. 2021 All Rights Reserved.

Medium-Term Business Plan

Yorozu Sustainability Plan 2023

New Technologies/Methods – Improving CompetitivenessMaterials
from steel
makersIn-house
production

Cars driven
bycustomers

Recycling

RecycleBlast furnace

Supplier

YorozuReduce emissions

Reduce emissions

Customer
Contribute to
reduction◆Proactively promote development of products that contribute to customer’s CO2
reduction activities as well as cut CO2 emissions in our production processes◆Develop products that customers will be willing to select by meeting theirenvironmental, performance, and price requirements© YOROZU CORPORATION. 2021 All Rights Reserved.

30

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Medium-Term Business Plan

Yorozu Sustainability Plan 2023

New Technologies/Methods – Lower CO2 Products
The SDGs concernedLighterweightContribution through the use of steel products

See ① in the next pages

1

ARM adopting new stamping structure●

2

Ultrahigh tensile strength ARM (980 MPa material)●

3

ARM made of replaced material (aluminum→steel)Contribution through the use oflighter materials and hybrid products

Material
replacement●
See ② in the next pages

4

Resin-Steel hybrid products●

5

Aluminum-Steel hybrid products●

6

All-Aluminum products

●

●

31

© YOROZU CORPORATION. 2021 All Rights Reserved.

Medium-Term Business Plan

Yorozu Sustainability Plan 2023

New Technologies/Methods – Development ①・Development of manufacturing methods using steel parts and structure
designed to reduce the number of manufacturing processes
・Press forming/welding technology enabling the use of thinner ultrahightensile sheets

Technological contribution through steel products
Item

ARM with a new stamping
structure

Ultrahigh tensile ARM(980 MPa material)

Key point

Development ofstructures/methods enablinga single stamping part to alsofunction as links

Development of press
forming/welding technology
enabling the use of thinner but
highly rigid materials

WeightCO2emissions

-15%

-19%

(0.57 kg → 0.48 kg)(9.02 kg → 7.32 kg)-25 thousand tons

-502 thousand tons

*Estimate based on a model with a 6-year life cycle and 200,000 units/year volume© YOROZU CORPORATION. 2021 All Rights Reserved.

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Medium-Term Business Plan

Yorozu Sustainability Plan 2023

New Technologies/Methods – Development ①
Considering total CO2 emissions, we propose replacing aluminum withsteel materials that results in overall lower CO2 emissions during material
fabrication though it increases the weight of the product

Technological contribution through steel productsComparison of CO2 emissions

Item

ARM material replaced(Aluminum → Steel)Key point

Development that enables
replacement of current materials
with steel that emits less CO2
during fabrication of the material

WeightCO2emissions

CO2 emissions (th tons)
Total emissions-281 th tons
-28%

Driving

Driving emissions+147 th tons
+33%

+33%
(Aluminum 1.85 kg → Steel 2.46 kg)
Fabrication-281 thousand tons

Aluminum ARM© YOROZU CORPORATION. 2021 All Rights Reserved.

Medium-Term Business Plan

Material fabrication-428 th tons
-76%
Steel ARM

*Estimate based on a model with a 6-year life cycle and 200,000 units/year volume

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Yorozu Sustainability Plan 2023

New Technologies/Methods – Development ②
Promotion of technologies using light-weight materials in our productportfolio featuring safety, high quality and high productivity that
contributes to reduction of CO2 emissions

Technologies contributed through light weight materials
and hybrid products
Item

Resin-Steelhybrid parts

Aluminum-Steelhybrid parts

All-Aluminumparts

Key point

Development of resin
brackets that have thesame performance levelas steel

Development of atechnology to joinaluminum and steel
materials

Evolution of the existing
technology of stamping
and welding aluminum(more cost competitive)

WeightCO2emissions

-36%

-34%

-28%

(Steel 0.75 kg →Hybrid 0.48 kg)(Steel 23.3 kg →Hybrid 15.4 kg)(Steel 15.3 kg →Aluminum 11.0 kg)-33 thousand tons

© YOROZU CORPORATION. 2021 All Rights Reserved.

-948 thousand tons -516 thousand tons

*Estimate based on a model with a 6-year life cycle and 200,000 units/year volume

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17

Medium-Term Business Plan

Yorozu Sustainability Plan 2023

New Technologies/Methods – Light Products (High added value)
Weight Reduction Target for Suspension Parts<2018～2020><2021～2023>

YSP2020

YSP2023Light & highly rigid
suspension structureand design
780 MPa class steel sheets

Achieved 15%
weight reduction

Ultra light weight & highly rigid
suspension structure & design① Steel sheets 980 MPa class② All-Aluminum stamping/welding structure③ New multi-material/hybrid structure(Steel sheet + Aluminum / Steel sheet + Resin)

Weight reduction 15% or more
YSP2023

YSP2020

2018

2019

2020

2021

2022

2023

Weight reduced by 30%© YOROZU CORPORATION. 2021 All Rights Reserved.

35

Contents

Ⅰ. FY2021 Second Quarter Financial Summary
Ⅱ. FY2021 First Half Results
Ⅲ. FY2021 Annual Forecast
Ⅳ. Progress of YSP2023
Ⅴ. Shareholder Return© YOROZU CORPORATION. 2021 All Rights Reserved.

36

18

FY2021 Forecast

Ⅴ. Shareholder Return271.5%(Yen/share)

Dividends paid as announced thoughprofits fell on an impairment loss

100

75
51 yen26 yen0

58 yen

35.5%

35.4%

20.1%

50

25

53 yen20 yen

10.2%

7.6%

5

10

11

10

10

2012

2013
Interim
中間配当
dividend

40

34
18

11
2014
2015
Year-end
期末配当
dividend

2016
Memorial
記念配当
dividend

48.0%

45%

51.6%

18
19

40

59 yen60%

46 yen

16

25

23

23

2017
2018
Dividend
配当性向
payout ratio

Dividend payout ratio
turned negative
due to net loss

30%

25 yen13

13 yen13 yen

12

13

7
6

2019

2020

2021

15%

0%

Forecast

We strive to ensure sustainable shareholder returns having set the dividend payout ratio at
35% or more. As in the first half, dividend of 13 yen per share is expected for FY2021.
37© YOROZU CORPORATION. 2021 All Rights Reserved.

－End－

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19

FY2021 First Half

Financial Results

Thank you for your attention

Yorozu website URL
http://www.yorozu-corp.co.jp© YOROZU CORPORATION. 2021 All Rights Reserved.

39

Disclaimer and Copyright
The financial forecasts, future forecasts, strategies and other statements in this material
are established based on judgments made within reasonable forecasts, according to theinformation available to the company at the time this material was prepared. However,there are risks and uncertainties in these forecasts, which could be caused by any special
circumstances and situations that cannot be foreseen. Therefore, actual results may differ
substantially from these forecasts.
Our company is fully committed to disclosing all information that we believe important toinvestors. However, investors are requested to refrain from making decisions based solely
on these forecasts and statements contained within this material.
It is strictly prohibited to reproduce any part of this material in any form, including
photocopying or forwarding, for any purpose without the prior consent of the company.
Contact Us
Yorozu Corporation
Person responsible: Akira SASO, Member of the Board (CEVP & CFO)
Contact personnel: Yoshitake TAKAHASHI, Manager, Accounting Group, Finance Dept.
TEL 045-543-6802© YOROZU CORPORATION. 2021 All Rights Reserved.

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