Financial Results: 3rd quarter of FY2021

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Agenda１．FY2021 3Q Consolidated Results
Summary
２．FY2021 Full-Year Forecast

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Summary

3Q
Consolidated
Results
Summary

FY2021Forecast• Operating profit decreased compared to the same period of theprevious fiscal year, when there was a sharp recovery afterCovid. The decrease is due to the impact of automobile
production cutbacks and increased costs in North America andother overseas markets, but the operating profit margin of
9.8% was maintained through fixed cost control and othermeasures.
• Although there is a delay in the recovery of automobile
production, the one-time costs are deemed to havebottomed out in November-December(Japan Q3 / Overseas Q4).
• Maintain the FY2021 guidance announced in October,and steadily implement fixed cost control, etc.

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Agenda１．FY2021 3Q Consolidated Results
Summary
２．FY2021 full-year forecast

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1. Financial Highlights

Secured almost double-digit OP margins despite the severe business environment•Sales increased compared to pre-Covid (3Q FY2019), but OP margin declined due to increased costs inNorth America, etc.
Almost double-digit OP margin secured through fixed cost control, etc.
Nifco Spain was divested in November 2021.

••(JPY100mn)
800

OP margin:
700

20.0%

Net sales :

688
15.0%

600
10.0%
500

9.8%

400

5.0%

300
0.0%
200
-5.0%
100

008/Q1
Q2
Q3
Q4
09/Q1
Q2
Q3
Q4
10/Q1
2Q
3Q
4Q
11/1Q
2Q
3Q
4Q
12/1Q
2Q
3Q
4Q
13/1Q
2Q
3Q
4Q
14/1Q
2Q
3Q
4Q
15/1Q
2Q
3Q
4Q
16/1Q
2Q
3Q
4Q
17/1Q
2Q
3Q
4Q
18/1Q
2Q
3Q
4Q
19/1Q
2Q
3Q
4Q
20/1Q
2Q
3Q
4Q
21/1Q
2Q
3Q

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52. FY2021 3Q Consolidated Results SummaryThorough management of fixed costs to deal with cost increases••Compared to the same period of the previous year, when rapid recovery post Covid was remarkable, 3Q
sales decreased (-3%) and operating profit decreased (-31%) due to the impact of reduced automobile
production and increased costs in North America and other overseas markets.
Profitability declined but fixed cost control and other measures ensured almost double-digit operating
profit margins.

FY2020

FY2021

3Q

1Q

2Q

3Q

YoY

Sales

71.1bn70.4bn69.3bn68.8bn-3.3%

Operatingprofit

9.8bn

8.9bn

7.2bn

6.8bn

-30.6%

OP margin

13.7%

12.6%

10.4%

9.8%

-3.9%pts

Net income1)

6.9bn

6.1bn

5.8bn

4.7bn

-31.9%

EPS

67.59yen

60.10yen

57.07yen

46.38yen-31.4%(JPY)FX rate

1$=107.5yen
1$=106.0yen
1$=107.8yen
1$=108.5yen
1$=+1.0yen
1euro=120.9yen 1euro=127.8yen 1euro=129.9yen 1euro=129.8yen1euro=+8.9yen

1) Net income is net income attributable to parent company

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3. FY2021 3Q(cumulative total) Consolidated Results Summary

Despite the impact of increased expenses and reduced automobile production,
operating profit exceeded that before Covid•

In 3Q, despite the increase in raw material and other costs and the impact of reduced automobile
production, fixed costs continued to be thoroughly managed and operating profit and OP margin
exceeding that of pre-Covid (FY2019) levels secured.

FY2019FY2020Total (1 – 3Q)

Total (1 – 3Q)

Total (1 – 3Q)

YoY

Sales

214.1bn

178.6bn

208.4bn+16.7%

Operatingprofit22.5bn16.3bn22.8bn+40.3%

OP margin

10.5%

9.2%

11.0%

+1.8%pts

Net income

15.1bn10.0bn16.6bn+65.6%

EPS1)

141.34yen

98.4yen163.64yen+66.3%FX rate

1$=109.1yen
1euro=122.6yen

1$=107.5yen
1euro=120.9yen1) FY2019: Diluted net income per share

FY2021

1$=108.5yen
1$= +1.0yen
1euro=129.8yen 1euro= +8.9yen
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4. FY2021 3Q (cumulative total) Consolidated Operating Profit (YoY Comparison)

Operating profit increased +40% YoY due to higher revenue••

Sales increased due to a recovery in production post Covid, which drove an increase in operating profit.
Variable costs such as raw material costs increased. Fixed costs increased in line with increasedproduction but were appropriately controlled within the budget.

-3.6bn-4.5bn+14.6bn

22.8bn16.3bnOperating profit(FY2020 1-3Q total)

Salesfactors

Marginal profit
factors

Fixed costfactors

Operating profit(FY2020 1-3Q total)

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5. FY2021 Segment Information (Net Sales)

Achieved year-on-year increase in sales in all regions•Sales increased in all regions compared to the same period of the previous year due to the reaction tothe sales decline caused by Covid. Particularly notable increases were in North America and Europe,
where sales declined significantly in the previous year.

FY2020

FY2021(JPY)(1-3Q total)(1-3Q total)

YoY

Consolidated

178.6bn

208.4bn+16.7%

Plastics

160.7bn

187.2bn+16.5%

Japan

50.4bn53.7bn+6.6%

NorthAmerica

35.5bn43.9bn+23.4%

Due to an increase in automobile production(January to September) and FX

Europe21.5bn26.7bn+24.1%

Due to an increase in automobile production(January to September) and FX

Asia

53.2bn63.0bn+18.3%

Due to an increase in automobile production(January to September) and FX

China

20.4bn21.8bn+7.0%

17.9bn21.2bn+18.1%

BedNoteStrong performance in China andSoutheast Asia

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6. FY2021 Segment Information (Operating Profit)

Achieved year-on-year increase in operating profit in all regions except North America••Despite an increase in expenses, operating profits increased due to a rebound from a profit decline
triggered by Covid compared to the same period of the previous fiscal year, except for North America.
Decrease in operating profit YoY in North America due to an (temporary) increase in material costs, etc.
resulting from climate change

FY2020

FY2021(1-3Q total)(1-3Q total)

Consolidated

16.3bn22.8bn

(9.1%)(11.0%)

Plastics

17.6bn22.7bn(10.9%)(12.1%)

Japan

8.3bn

8.9bn

(16.4%)(16.6%)

1.8bn

1.0bn

(5.0%)(2.3%)

Europe

0.1bn

1.5bn

(0.3%)(5.8%)

Asia

7.5bn

11.2bn(14.2%)(17.7%)

2.2bn

3.4bn

(10.9%)(15.5%)

2.5bn

3.9bn

(14.1%)(18.5%)(JPY)

NorthAmerica

ChinaBed

YoY

Note+40.3%+29.0%+8.0%-42.3%

Increase in material-related costs(temporary)+2,477%

Increase in reaction to the decreasein sales and profit from Covid+48.0%+52.1%+54.8%

Strong performance in China andSoutheast Asia

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7. Capital investment and depreciation

Allocation of funds with emphasis on cash flow-oriented management•Continue to focus on cash flow management

FY2020

FY2020(1-3Q total)(1-3Q total)

CAPEX

12.3bnDepreciation

ChangeFY2021 plan

5.6bn

-6.6bn14.0bn9.9bn9.4bn-0.5bn13.3bn

R&D

1.9bn

2.0bn

+0.1bn3.0bn

Operating CF

23.0bn20.8bn-2.2bn38.0bnInvestment CF-8.7bn-6.3bn+2.4bn-13.8bn

Free CF

14.3bn14.5bn+0.2bn20.2bnFinancial CF-18.3bn-12.5bn+5.8bn-11.7bn

Cash equivalentbalance85.0bn100.6bn+15.6bn

106.5bn(JPY)

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Agenda１．FY2021 3Q Consolidated Results
Summary
２．FY2021 Full-Year Forecast

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8. FY2021 Forecast (Estimate)

Automobile production recovery delayed, but one-time expenses settled inOctober - December as expected•

Recovery of automobile production has been delayed from the forecast as of Oct. 2021, but one-timecosts related to materials, etc. are deemed to have bottomed out in the October-December period (3Qin Japan and 4Q overseas).
: FY2021 1H: FY2021 2H

Current outlook (at the time of FY21/
3Q announcement)

Improved relative to outlook
as of FY21/2Q announcement

2021
Automobile BusinessJul.-Sep.

Oct.-Dec.

As expected, relative to outlook
as of FY21/2Q announcement

Declined relative to outlook
as of FY21/2Q announcement

2022Jan.-Mar.

Outlook for 4Q

Overseas

Delay in recovery
production ofautomobiles relative
to October 2021forecast

Japan-Overseas

End of accounting
for one-time costs

JapanSales

Cost

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9. FY2021 Forecast (by segment)

Achieved 74% sales and 77% operating profit against current fiscal year forecast•Achievement rates for sales and operating profits are 74% and 77%, respectively, relative to the current
fiscal year's guidance and largely in line with the forecast, despite fluctuations in automobile recovery
production.

FY2021(1-3Q total)

FY2021 guidance

Achievement rate

Sales

OP

Sales

OP

Sales

OP

Consolidate

208.4bn

22.8bn280.0bn

29.5bn

74.4％

77.4％

Plastics

187.2bn

22.7bn251.5bn

29.8bn

74.4％

81.2％

Japan
North
America
Europe53.7bn8.9bn

76.0bn13.0bn

70.6％

68.5％

43.9bn1.0bn

56.5bn

1.4bn

77.6％

71.4％

26.7bn1.5bn

33.0bn

2.0bn

80.9％

75.0％Asia

63.0bn11.2bn85.5bn13.9bn

73.7％

80.3％

China

21.8bn3.4bn

29.0bn

3.9bn

75.2％

87.1％

21.2bn3.9bn

28.5bn

5.0bn

74.4％

78.4％

Bed

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10. Shareholder return

Exceeded target of 30% payout ratio target through dividends and share buybacks••

Achieved stable dividends with a commitment to a payout ratio of 30%.
In addition, by flexibly conducting share buybacks, we achieved total shareholder returns exceeding
our dividend payout ratio target (executed 2 buybacks in FY2021).

Dividend(full year)

FY2017FY2018FY2019FY2020

FY2021e62
yen/share62
yen/share62
yen/share53
yen/share62
yen/share(Maintain initial forecast)

Shareholder Return

Share buyback 0.53mn shares(4bn yen)
Target(payout ratio)

30%

49%
Track
record1mn shares(2.8bn yen)30%

0.79mn shares 0.71mn shares 1.1mn shares(3.9bn)(1.4bn yen)
(1.4bn yen)30%
: Dividend

45%

43%

19%

14%

8%

30%

31%

35%

30%
: Share buyback

Note: As of February 3, 2022
Nifco conducted a 2-for-1 stock split of common stock on April 1, 2018, and “Dividend” on this page is presented
on the assumption that the stock split was conducted at the beginning of FY2017.

37%
8%
29%

30%

48%
18%
30%

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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 the time of this writing. Actual results may
differ greatly from the forecast figures depending on various factors.
AllReserved.
Rights Reserved.
Copyright
2018. Nifco
All Rights
Copyright©©2018.
NifcoInc.
Inc.

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