Financial Briefing(Fiscal year ended March 31, 2022)
May 13, 2022
PUNCH INDUSTRY CO., LTD.
(Security Code: 6165 TSE Prime)

Financial Highlights for the year ended March 31, 2022
Achieved revenue growth in all regions and recorded highest profits since listing
Consolidated

Japan

Sales

China

Consolidated sales increased 121.2% year-on-year, an increase of ¥6.8 billion to¥39.3 billion.
Increased 113.6% year-on-year to ¥14.0 billion.
Sales for electronic devices and semiconductors remained strong, influenced by arecovery in the automotive sector.
Increased 124.1% year-on-year to ¥20.9 billion.
All industries remained strong despite the significant impact of foreign exchange
rates.

Southeast
Asia

Increased 126.4% year-on-year to ¥1.7 billion.
Singapore, Malaysia and Vietnam performed particularly well.

Europe,The US,
andOthersIncreased 142.2% year-on-year to ¥2.6 billion.
In addition to medical products, sales of electronic devices and semiconductors
were strong.

ProfitOperating profit was ¥3,041 million, 188.5% of the previous fiscal year
Ordinary profit was ¥3,007 million, 179.4% of the previous fiscal year
Profit attributable to owners of parent was ¥2,040 million, 427.2% of the previous
fiscal year

Net Cash

Increased by ¥1,901 million from the beginning of the fiscal year ended March 31,
2022, mainly due to the recording of net income.
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1

Income Statement Summary(Unit: Millions of yen)

Difference
year-on-year

Percentage
of change
year-on-year

FY21.3

FY22.332,46239,3586,896

121.2%

Sales
Operatingprofit5.0%

1,613 7.7% 3,041

1,428

188.5%

Ordinary
profit5.2%

1,676 7.6% 3,007

1,331

179.4%

Profit attributable 1.5%

477 5.2% 2,040

1,563

427.2%

to owners of parent

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2

Sales and Profit(Unit: Billions of yen)

0

0

0

32.4

0

0

0

39.3

Sales
Operatingprofit

3.041

45.00

[Year-on-year comparison]
35.00

Sales
Operatingprofit 25.00

1.613
2.040

0

Net
profit*15.00¥6,896 million

Increasein sales¥1,428 million

Increasein profit¥1,563 million

Increasein profit*Profit attributable to owners of parent

0

0

0

5.00

0.477
FY21.3

Net Profit
attributable toowners of parent-5.00

FY22.3
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3

Sales by Region

450(Unit: Billions of yen)

400

350

2.410
1.535

300

2.641
1.740
1.858
1.376

250

16.836200

20.956

Sales increased in all regions, but Japan did notrecover to the levels seen before the COVID-19
pandemic
Europe,The US,
andothersMedical product exported to Europe
and the US remained strong

Southeast
Asia

Singapore, Malaysia and Vietnam
drove the increase in sales

China

Sales of electronic devices andsemiconductors remained strong
Performance was positive despite
the upturn of exchange rates

Japan

Sales of electronic devices andsemiconductors remained strong
Automotive sales were solid but
level

16.888

150

100
50

14.56512.33814.0200FY20.3

FY21.3

FY22.3

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4

Sales by Industry

450(Unit: Billions of yen)

Sales of electronic devices and semiconductors remained strong
Sales of consumer electronics and precision equipment failed toreach the levels seen before the COVID-19 pandemic

400

350

300

250

200

Other

Food products showed signs ofrecovery
Medical products continued toperform well

Consumerelectronics/
precisionequipment

Growth slowed year-on-year as thedemand from those staying at
home during the pandemic passed
the peak

16.442

Electronic
devices/ semiconductors

Performance remained strong due
to shortage of semiconductor
components in the manufacturingindustry as a whole

FY22.3

Automobile

Sales in Japan were solid but level
In China, they remained strong

10.679
9.566
4.298
6.113

150

8.574
3.888

8.043

6.315

100

15.37013.682

FY20.3

FY21.3

50

4.192

0

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5

Operating Profit Changes(Unit: Millions of yen)
FY2021
FY21.3

1,613

Increase in sales
1,930
Improved costof sales ratio
427¥1,428 million
increase from
FY21.3 to FY22.3

Increased SG&A
expenses
929
FY2022
FY22.3

3,041[Major factors for changes insales]■ Sales increased in all regions
and industries from previous
fiscal year, which wassignificantly affected by the
COVID-19 pandemic[Major factors for changes incost of sales ratio]■ Increased factory operations
resulted in improved cost of
sales ratio■ Effectiveness of theManagement Innovation Project[Major factors for changes in
SG&A expenses]■ A portion of SG&A expenses
that had been kept in check
Group-wide increased■ Higher expenses linked toincreased sales

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6

Balance Sheet Summary(Unit: Millions of yen)

FY 21.3

Year-on-yearchanges

FY 22.3

Total assets

24,702

28,774

4,071

Total liabilities

12,266

12,466

200

4,997

3,820

(1,177)

Net assets

12,436

16,3073,870

Net cash

(905)

995

1,901

Equity ratio

50.2%

56.5%

6.3pt

Return on equity (ROE)

4.0%

14.2%

10.2ptCapital expenditure

452

1,149

696

968

971

2

Interest-bearing
debt(including intangible assets)

Depreciation(including intangible assets)

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7

Cash Flows Summary(Unit: Millions of yen)

FY21.3

FY22.3

Cash flows from operating activities

2,942

2,941

Cash flows from investing activities(670)(1,099)

Free cash flow

2,272

1,841

Cash flows from financing activities(1,684)(1,600)

596

707

3,962

4,669

Changes in cash and cash equivalents(including translation adjustments)
Cash and cash equivalents at end of period

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8

FY23.3 Full-Year
Earnings Forecasts
Mid-term Business Plan
“Value Creation 2024”
Numerical Targets◆ In this document, VALUE CREATION as used in
the Mid-term Business Plan is referred to as “VC.”Mold and Die Market Forecasts (Amounts)
Temporarily down from investment curtailment due to factors including the COVID-19
pandemic, but recovering(Unit: Trillions of yen)
10.00

8.00

Mold and die shipment amounts of major countries
over the last 10 years

9.3(Source) Mold and die industrial associations in each country
Figures have been revised retroactively based on the mostcurrent data in 2022

8.8

8.5
7.8

Europe

6.5
US
6.00
Japan
4.00

Asia

2.00
China

0.00

FY13.3 FY14.3 FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 FY20.3 FY21.3 FY22.3
Results
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Our estimate

10

FY23.3 Results and Dividend Forecasts(Unit: Millions of yen)

FY22.3(Results)

FY23.3(Forecasts)

39,35843,500Operating profit 7.7% 3,041 6.0% 3,300
Ordinary profit 7.6% 3,007 5.9% 3,270
Profit attributable to 5.2%
2,040 4.0% 2,100
owners of parent
ROE
14.2%
12.2%
Sales

Capitalexpenditure(including intangible
assets)Depreciation(including intangible
assets)Dividend
forecast

Percentage ofDifferencechange yearyear-on-year
on-year

4,142
259
263
60
(2.0 pt)

110.5%
108.5%
108.7%
102.9%
－

1,149

1,600

451

139.3%

971

1,000

29

103.0%

Interim dividend of ¥6.5 per share + year-end dividend of¥6.5 per share = ¥13 per share
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11

Management Targets for the VC 2024 Mid-term Business Plan

00

(Unit: Billions of yen)

1

Operating profit

00

Sales
41.0

00

1.9

32.4

2.5
0.8

00

1.3

5.0

35.3
2.8

00

39.3

36.6

1.7

3.0

0.9

6

39

3.3

4

4.0

1.6

31

2.0

1

8

450

43.5

40.9

50.0

2.1

Profit0.4

20attributable to owners of parent-2■ Cumulative total over 3
years Capital expenditure¥5.0 billion Depreciation ¥3.0
billion

00

-3.4

-4

0

-6
FY17.3

FY18.3

FY19.3

FY20.3

ＶＣ2020FY21.3

FY22.3

FY23.3Plus

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FY24.3

FY25.3

ＶＣ2024
12

Numerical Targets for Sales by Region and Industry

00

50“VC 2024” covers FY23.3 through FY25.3 600(fiscal year ending March 31, 2023 through fiscal year
ending March 31, 2025)

550

00 (Unit: Billions of yen)

50

00

50

2.6
1.7

3.0
2.0

23.7

00

Other

14.0
13.0
10.7

Southeast
Asia300

250

4.2

200

8.0

5.5
4.4
8.5

Electronic
devices/
semiconductors

150

00
14.0

17.9

14.8

100

16.4

20.4

17.6

Japan
50

0

Consumerelectronics/
precisionequipment

10.1

China

50

50

Europe,
The450US,
andOthers

350

25.5
21.0

(Unit: Billions of yen)

400

00

50

4.0
2.6

500

Automobile

0
FY22.3

FY23.3

FY24.3

FY25.3

FY22.3

FY23.3

FY24.3

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FY25.313

Reference Materials

Punch Group at a Glance
Establishment

Listing

March 1975

2012 stock listing2022 Prime Market(50th anniversary in 2025)

Market share*
Production bases

Japan
4

Overseas8(Japan No. 2 / China No. 1)*Share of mold and die components
industry (our estimate)

PUNCH INDUSTRY CO., LTD.

Sales bases

Japan
11

World No. 2

Overseas40

Japan 36%

Overseas64%(China 53%)

No. of Employees (March 2022)

Japan
1,002

Overseas sales ratio (FY22.3)

Overseas
2,977

Corporate GovernanceOutside director ratio 40%(Chairman of the Board of
Directors is an outside
director)

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15

Management Structure
Profile of President and Representative Director

Board of Directors
Representative Director, President
and Chief Executive Officer
Chief Executive Officer (CEO)Tetsuji Morikubo

Joined the Company

Director, Managing Executive Officer
Chief Operating Officer (COO/Sales)

Yasuhiro Sanada

Feb. 2005

PUNCH INDUSTRY (DALIAN) Co.

Director and Senior Executive Officer
Chief Financial Officer (CFO)

Takao Murata

Nov. 2012

General Manager, Value Creation
Promotion Office

Akira Takanashi

Apr. 2013

General Manager, Corporate Planning
OfficeDirector and Senior Executive Officer
Chief Operating Officer(COO/Manufacturing)
Director

Susumu Sugita

Apr. 2015

PUNCH INDUSTRY
MALAYSIA SDN. BHD.

Outside Director
Chairman of the Board

Yukiko Mitsuhashi

Outside Director

Naruhiko Takatsuji

Director (Audit & Supervisory Board
Member)Minoru Kawano

Name and date of birth

CareerTetsuji Morikubo(January 22, 1977)

May 2003

May 2016

Executive Officer

Jun. 2018

Director, Senior Executive Officer,
Corporate Strategy

Apr. 2019

Chief Strategy Officer Group Business
Management

Jun. 2019

Representative Director (incumbent)
Executive Vice President

Nov. 2019

President and Chief Executive Officer
in charge of the Punch Industry Group(incumbent)

Directors

Director(Audit &Supervisory
Board
Member)Outside Director (Audit & Supervisory
Yoriatsu Matsue
Board Member)
Outside Director (Audit & Supervisory
Tomoo Suzuki
Board Member)

Ratio of Outside Directors
44名
persons
40%

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Ratio of Female Directors
11名
person10%

16

Punch Group History
'70

'80

1975
⚫ Establishment, manufacture ofdrilling pins for printed circuit boards

1982⚫ Expansion into plastic moldcomponents(Succeeded in mass production ofhigh-speed steel ejector pins)

'90

'00

1990

2001

⚫ Manufacturing base established in⚫ Established sales base in China

Dalian, China

1983⚫ Kitakami plant established, started
nationwide sales of mold and die
components
1989⚫ Miyako Punch Industry (now Miyako
factory) established

'10
2010
⚫ Established sales base in India
2013⚫ Panther Sdn Bhd (now Malaysia
Punch) becomes a groupcompany⚫ Mid-term Business Plan “Value
Creation 15” started
2014⚫ Listed on the First Section of theTokyo Stock Exchange (Listed on
the Second Section of the Tokyo
Stock Exchange in 2012)2015⚫ Manufacturing base established in
Vietnam⚫ 40th anniversary

'20
2020
2016
⚫ Vietnam factory begins full-scale
operations⚫ Sales base established in Illinois,
U.S.A.
⚫ Mid-term Business Plan “Value
Creation 2020” started⚫ Start of Mid-term Business Plan “Value Creation 2020 Plus”⚫ Launch of Management Innovation Project2022⚫ Start of Mid-term Business Plan “Value Creation 2024”⚫ Moved to the Tokyo Stock Exchange Prime Market

2018⚫ Expansion of manufacturing basein Dalian, China
2019⚫ Started the second phase of theVietnam factory

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17

Description of the Business
Manufacture and sale of a wide variety of precision mold and die components that are indispensable tothe construction of molds. The “behind-the-scenes expertise” that enriches your life.

For example, parts like these
Molds and dies

Components

Products

Molds and dies madeof metal to makecomponents quickly,
uniformly, and in large
quantities

Parts needed to forma product

Various products we
use in our daily lives,
such as automobiles
and consumer
electronics

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18

Punch Group’s Core Products
Plastic mold and die components such as injection molding dies and press die components such as
stamping dies, for a wide range of customers spanning upstream to downstream manufacturing

Plastic mold and die components

Press die components

Plastic molds are used in the manufacture of many plastic
products, including the exteriors of smartphones and digital
cameras. Products are made by injecting heated, molten plastic
resin into a mold mounted on an injection molding machine,cooling, and solidifying. The Punch Group manufactures and sells
the components that make up these molds and dies.

A die is mounted on a press machine (a machine that moves up
and down), a metal sheet is placed between the upper and lower
dies, and the press machine is operated to produce a productmolded by the die. The Punch Group manufactures and sells thecomponents that make up these molds and dies.

Core productCore productEjector pin

Punch

This part (extrusion pin) is used toseparate the injection-molded product fromthe mold itself and eject it.

Typical parts incorporated in press dies,
these parts are used to make holes inmetal plates and transfer shapes. Our
company name comes from this punch.

Core productCore productCore pin

Holder guide posts

Used to form the product section, theshape of the core pin is transferred. The
core pin forms a void in the product section
or engraving on the product section.

These parts are used to maintain thecorrect relationship between the upper andlower molds.

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19

Punch Group Strengths and Network
Extensive lineup of versatile catalog products and special order products to meet custom needs
supporting manufacturing across the world
Strengths of the Punch Group

Punch Group Network
Group companies

Sales offices

China• Punch (Dalian) (Dalian Factory, Chongqing Factory)• Wafangdian Punch• Wuxi Punch• Dongguan Punch• Panqi Spring

Providing high customer satisfaction

Catalog products
Extensive lineup of
highly versatile standard products

Special order products
Timely,precisesolutions

Capable of responding
flexibly to custom needs
U.K.

Germany

A one-stop
production systemwith 2,000 units ofequipment and wide
ranging support

A customeroriented businessstructure
meticulous, responsive
and capable

Korea

U.S.A.
• Punch Industry U.S.A.

TurkeyThailandTaiwanPhilippines

India• India Punch

Japan• Punch Industry(Kitakami Factory, Miyako Factory,
Hyogo Factory)• Pintec

Australia

High technicalcapabilities
Expertise cultivatedsince the Company's
founding,
and untiring researchand development

Malaysia• Malaysia Punch

Singapore• Singapore Punch

Vietnam• Vietnam Punch• Vietnam Factory.

Indonesia• Indonesia Punch

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20

Sales and Operating Profit(Unit: Billions of yen)
Operating profit

Sales
100

10.2

9.4
8.7

8.5

8.8

8.6

8.2

14.0

9.8

9.9

9.2

12.0

8.2

10.0

80

7.1

0.971

0.796

60

8.00

0.802

0.680

6.00

0.619
40

0.593

0.471

2.00

0.288

20

0.109

4.00

0.161

0.00

0.024

(0.029)
0

▲
1Q

2Q

3Q

FY20.3

4Q

1Q

2Q

3Q

4Q

1Q

FY21.3
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2Q

3Q

4Q

FY22.3

21

0

0

0

0

Sales by Region(Unit: Billions of yen)
10.2
9.9 Europe, The
9.8
US, and9.4
9.2 0.785 0.656 0.643 Others
8.8 0.556 0.447
8.6
0.459 Southeast
8.5 0.692 8.7
0.439
8.2 0.532 0.394
Asia
8.2
0.391 0.560 0.594
0.563
0.434 0.454 0.379
0.397 0.393
0.352
7.1 0.321 0.331
0.436
0.344
5.590 5.211 5.303 China
4.610
3.879
4.503 4.851
4.287 4.059
4.700 4.360
3.325

0

0

3.715 3.786 3.474 3.590

3.063 2.786 3.099 3.388 3.475 3.422 3.542 3.579

Japan

0

1Q

2Q

3Q

FY20.3

4Q

1Q

2Q

3Q

FY21.3

4Q

1Q

2Q

3Q

4Q

FY22.3

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22

0Sales by Industry(Unit: Billions of yen)

10.2

0

9.4

2.662

0

0

0

0

8.7

8.5
2.248
1.042

1.217
1.642
1.290

8.8

8.6

8.2

2.257 2.397 7.1
1.045 0.994
1.552 1.627

1.785
0.939 1.034

0.874
1.444

3.755 4.132 3.864 3.617

2.361

2.773

2.441
1.073

1.039

1.480 1.612 1.778

9.9

9.2

8.2

2.277 2.150

9.8

2.713 2.750 Other
Consumerelectronics/
precisionequipment

0.988

1.069 1.061

1.968

2.164 1.958 1.952 Electronic
devices/

3.880
3.065 3.544 3.448 3.623

semiconductors

4.233 4.107 4.221 Automobile

0
1Q

2Q

3Q

FY20.3

4Q

1Q

2Q

3Q

FY21.3

4Q

1Q

2Q

3Q

4Q

FY22.3

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23

Toward Increasing the Market Capitalization of Tradable Shares
Through increases in the share price and market capitalization, measures to enhance corporate
value, we aim to achieve and further increase market capitalization of tradable shares of 10 bn
JPY, which is the standard for maintaining a Prime Market listing
Challenges to increasing the market capitalization of
tradable shares

Increase in share price through measures toenhance corporate value
Strengthen “earning power” through ROIC management
Optimal balance between growth investments and stabledividends

Basic policy for addressing the challenges
Implement capital investment for growth
Improving business performance and changing work
styles through DX promotion
Sustained development of new technologies andproducts

Market capitalization

Ratio of tradable shares

Total market
capitalization of tradable
sharesResult of the primary
determination(as of June 30, 2021)¥13.4 billion

65.3%¥8.78 billion

ＶＣ2024Endassumption

Furtherincrease

73.9%1¥10 billion ormore

1. Assuming that 2,500,000 new shares were issued through the issuance of the 4th series of share acquisition rights with an exercise priceamendment clause by way of third-party allotment and that all of them were tradable shares
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24

Contact for IR related inquiries: IR & PR Division, Corporate Strategy Planning Office, PUNCH INDUSTRY CO., LTD.
Phone: +81-3-5753-3130
E-mail: info-corp@punch.co.jp
Disclaimer Regarding Forward-Looking Statements
This document is solely to provide information to investors, not to solicit sales.
Its forward-looking statements are based on targets and forecasts and do not constitute commitments or guarantees. Please also beaware that the company’s results going forward may differ from our current predictions.
In addition, statements regarding industries are made based on a variety of data that are assumed to be reliable, but we do not guarantee
their accuracy or completeness.
This document is presented on the assumption that, whatever the purpose, it will be used by investors at their own discretion and risk,
and the Company assumes no responsibility whatsoever in that regard.