Summary of Financial Results:
3rd Quarter of FY2023

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Agenda１． FY2023 3Q Financial Overview
２． FY2023 Full-Year Forecast

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Summary3QOverview• Quarterly sales reached a record historical high for thefifth consecutive quarter due to recovery in production
volume and foreign exchange effects.
• Operating profit increased in both YoY and QoQ due toincreased revenue and fixed cost control.
• Operating profit margin of 11.4% in the first half of FY2023,
showing enhancement of our earning power.
• Most of the treasury stocks were cancelled in the firsthalf of FY2023.

FY2023Full-yearForecast・ Progress has been generally as planned, and no revisionin our guidance for FY2023.
(Currently we have been in negotiations on divestiture ofsubsidiary.
If it is fixed, we will promptly revise the forecast.）• Dividend forecast for FY2023 year also remains
unchanged (64 yen/share).

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3Agenda

１． FY2023 3Q Financial Overview
２． FY2023 Full-Year Forecast

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1. Financial Highlights

Historical Sales and Operating Profit (OP)• Record-high sales were recorded in 3Q following 2Q.
• OPM remained steady 11% level.
(Billions of yen)
Net sales :Operating margin :All Rights Reserved. Copyright © 2018. Nifco Inc.

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2. Overview of FY2022 3Q Consolidated

Highest Level of Sales, OP and OP Margin in The Past Year
• Both sales and OP increased QoQ, mainly due to yen depreciation and strong
performance in Japan.
• Net income decreased from the previous quarter mainly due to foreign exchange
gains.
FY2022

FY2023

3Q

1Q

2Q

3Q

YoY

Net Sales

85.9bn87.9bn90.9bn94.9bn+10.6%

Operatingprofit10.3bn10.1bn10.5bn10.8bn+5.6%

OP margin

11.9%

11.5%

11.6%

11.4%

-0.5%pts

Net income 1)

4.7bn

9.7bn

7.6bn

6.1bn

+29.5%

EPS

46.77yen

61.02yen+30.5%(JPN)

FX rates

97.50yen 76.22yen

1USD=128.3yen 1USD=132.4yen 1USD=135.0yen 1USD=138.2yen 1USD=+9.9yen
1EUR=136.1yen 1EUR=142.1yen 1EUR=145.9yen 1EUR=149.8yen 1EUR=+13.7yen1) Net income is net income attributable to parent company
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3. Overview of FY2023 3Q Consolidated

Sales And OP Increased YoY. OPM Remained Solid at 11.5%••

Both sales and OP increased YoY mainly due to yen depreciation and strong performancein Japan
OPM remained steady at 11.5%
FY2021

FY2022

3Q cumulative

3Q cumulative

3Q cumulative

YoY

Net Sales

208.4bn

234.2bn273.7bn+16.9%

Operatingprofit

22.8bn25.4bn31.5bn+23.7%

OP margin

10.9%

10.8%

11.5%

+0.6%pts

Net income 1)

16.5bn18.5bn23.4bn+26.3%

EPS

163.64yen

184.87yen

234.82yen+27.0%FX rates

1USD=108.5yen
1EUR=129.8yen

1USD=128.3yen
1EUR=136.1yen

1USD=138.2yen
1EUR=149.8yen

1USD=+9.9yen
1EUR=+13.7yen(JPN)

FY20231) Net income is net income attributable to parent company
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4. FY2023 3Q Consolidated OP (YoY)1

Operating Profit Analysis (YoY)••OP increased driven by sales increase due to recovery in production volume.
Both variable and fixed costs increased due to inflation, but were controlled to a certain
level.
(JPY)-2.2bn-6.3bn+13.3bn+1.3bn31.5bn25.4bnOperating profit(FY2022 1~3Q)

Sales
factors

Marginal profit
factors

Fixed cost
factors

FX ratefactors

Operating profit(FY2023 1~3Q)

1) Overseas: January - June, Japan: April - September

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5. FY2023 H1 by Segment (Sales) 1Achieved Revenue Growth in All Regions and All Segments•Japan and the U.S., where recovery in production volume by JPN OEMs is remarkable,
led the increase in sales• Sluggish sales in China due to lower production volume caused by struggle of JPN OEMs
2022FYFY2023YoY
Note(3Q cumulative)(3Q cumulative)(JPN)
Consolidated

234.2bn273.7bn+16.9%

Plastics

210.5bn

247.6bn+17.6%

Japan

56.6bn66.3bn+17.1%

Automobile production recovery

NorthAmerica

52.6bn65.2bn+23.8%

Automobile production recoveryof Japanese OEMs

Europe27.2bn34.6bn+27.2%

Automobile production recovery

Asia

74.1bn81.5bn+10.1%

Strong production of Korean OEMs

China

24.6bn21.5bn-12.5%

Decreased automobile productionof Japanese OEMs

Bed

23.7bn26.1bn+10.4%

Sales to hotels recoveryJapan

12.7bn13.6bn

+7.5%

Asia

11.0bn12.5bn+13.7%

1) Overseas: January - June, Japan: April - September
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6. FY2023 H1 by Segment (OP) 1Achieved Revenue Growth in All Regions Except China••(JPN)

Margin improvement in North America, Europe and Japan, drove the rise in OPM
China continues to face a difficult business environment due to the impact of declining
sales
2022FY
2022FY
YoY
Note(3Q cumulative)(3Q cumulative)

Consolidated

25.4bn31.5bn+23.7%

Plastics

25.2bn31.0bn+23.3%

Japan

9.4bn

12.9bn+38.1%

1.6bn

2.2bn

+35.9%

Europe

0.6bn

1.9bn

+204.3%Asia

13.6bn14.0bn+3.2%

Remain strong performance

China

4.3bn

(17.4%)

3.3bn(15.2%)-23.4%

Thoroughly strengthen fixed
cost control

4.1bn(17.2%)

4.4bn(16.8%)

+8.0%

1.7bn

(13.6%)

1.9bn(14.2%)+12.7%

2.3bn

2.5bn

+4.6%

NorthAmericaBedJapanAsia(10.8%)(11.9%)(16.6%)(3.0%)(2.3%)(18.3%)(21.3%)(11.5%)(12.5%)(19.5%)(3.3%)(5.5%)(17.2%)(19.6%)

Improvement due to increased sales
and fixed cost management
Improvement due to increased sales
and fixed cost management
Improved utilization ratio due toincreased production volume1) Overseas: January - June, Japan: April - September
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10Agenda

１． FY2023 3Q Financial Overview
２． FY2023 Full-Year Forecast

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117. FY2023 Full Year Guidance

No Revision in Full-Year Guidance••

We have been in negotiations on divestiture of German subsidiary disclosed on
Jan. 4th, and forecast remains unchanged.
If it is fixed, we are planning to disclose necessary information promptly.
FY2022

FY2023

3Q cumulative

3Q cumulative

Full-Year Forecasts

Achievement rate

Net Sales234.2bn273.7bn343.0bn

79.8%

Operatingprofit

25.4bn31.5bn38.0bn82.9%

OP Margin

10.8%

11.5%

11.1%ｰRecurring
Profit29.0bn34.6bn38.3bn90.3%

Net Income1)

18.5bn23.4bn23.5bn

99.5%

EPS2)

184.87yen

234.82yen

235.59yen

99.6%(JPN)1) Net income is net income attributable to parent company, 2) Net Income per a share
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8. CAPEX and Depreciation

Free Cashflow Will Steadily Increase••

Operating cashflow progressed as planned (82%)
Progress of CAPEX is 49% of the original plan, planning acceleration of growthinvestment next fiscal year.
FY2022(1〜3Q)

FY2023(1〜3Q)

ChangePlan(FY2023)

CAPEX

6.3bn

6.6bn

+0.3bn13.3bnDepreciation

10.1bn10.5bn+0.4bn13.8bn

R&D

2.8bn

2.8bn

- bn

3.6bn

Operating CF

22.8bn29.5bn+6.7bn36.0bnInvestment CF-10.8bn-4.6bn+6.2bn-13.3bn

Free CF12.0bn24.9bn+12.9bn

22.7bnFinancial CF-10.3bn-25.0bn-14.7bn-19.5bn

Cash equivalentbalance116.8bn

128.4bn+11.6bn

124.2bn(JPN)

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9. Shareholder returns

Plan to remain DPS the same level as FY3/2023,consider flexible buybacks•••

Cancelled 7,251,901 shares of treasury stock at the end of September
Plans to maintain the dividend at 64 yen per share, unchanged from the previous year
(dividend payout ratio of 30%)
Flexible share buybacks will continue to be considered for this fiscal year.
FY2018FY2019FY2020
FY2021
FY2022
FY2023eDividend(full year)Sharebuy-back

Sshareholder return

Target(payout ratio)

62

53

62

64

yen/shareyen/shareyen/shareyen/shareyen/shareyen/share(Plan)

1mn

790k

710k

1.38mn360k

670k

shares
(2.8bn yen)shares
(1.4bn yen)shares
(1.4bn yen)shares
(4.8bn yen)shares(1.2bn yen)shares
(2.5bn yen)

30%

30%

30%

30%

30%

30%

Dividends

Results

6462: Share buybacks

45%

43%

14%

8%

31%

35%

37%
8%
29%

48%
20%

27%

36%
6%
30%

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End

Forward‐looking statements or projections included in this document, including earnings projections,are based on currently available information and certain premises that are judged to be rational at thetime of this writing. Actual results may differ greatly from the forecast figures depending on variousfactors.

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