Consolidated Financial Results
Ended March 31, 2020
DaikyoNishikawa CorporationMay, 20202014年8月

Table of Contents

1. Financial Results for Fiscal 2019

Page 2

2. Financial Forecast for Fiscal 2020

Page 12

3. Medium-Term Business Plan
FY2019~FY2022

Page 14

4. Dividend policy

Page 17©DaikyoNishikawa Corporation All rights reserved.

P.1

1. Financial Results for Fiscal 2019

©DaikyoNishikawa Corporation All rights reserved.

P.2

Highlights【Financial Results for Fiscal 2019】■Despite of push up revenue brought by increased external suppliedparts for new vehicle and resin backdoor business growth, total
sales declined year on year due to reduced car production of major
customers in Japan, China and Mexico■Profits decreased year on year due to increase in depreciation
expenses, work style reform cost and preparation cost for new USfactory©DaikyoNishikawa Corporation All rights reserved.

P.3

Consolidated Profit and Loss Statement
Sales decreased caused by reduced car production of major customers
Profit also decreased due to depreciation expenses, work style reform costand preparation cost for new US factory(Millions of yen)

Financial
Results EndedMar. 31, 2019

FinancialResults Ended
Mar. 31, 2020

Net Sales

184,314

182,219-2,094-1.1%

OperatingIncome

14,621

8,995-5,625-38.5%

Ordinary Income

14,8369,500-5,335-36.0%

Net Income
Attributable toOwners of Parent

10,402

4,907-5,494-52.8%

Operating Margin

7.9%

4.9%

-3.0Pts－Net Income per
Share

146.82Yen

69.27Yen-77.55Yen－©DaikyoNishikawa Corporation All rights reserved.

P.4

Changes(Y on Y)

Changes (%)

Sales by Region
Sales increased in Japan and ASEAN segments, but slowed sales
in China/Korea and Americas segments
Net sales to outside clients

DomesticOverseas(Millions of yen)

Financial
Results Ended
Mar. 31, 2019

Financial
Results Ended
Mar. 31, 2020

145,132(78.7)

145,491(79.8)（+1.1Pts）

China/Korea

8,428

5,975

-2,452-29.1%

ASEAN

13,224

13,334110

0.8%

Americas17,52817,417

-111

-0.6%

Sub total

39,181(21.3)

36,728(20.2)-2,453（-1.1Pts）

184,314

182,219-2,094Japan(component ratio)(component ratio)

Total©DaikyoNishikawa Corporation All rights reserved.

P.5

Changes(Y on Y)358

Changes
(%)

0.2%

-6.3%
-1.1%

Operating Income by Region
Profit decreased in all segments mainly due to fixed cost increase
and impact of slow sales(Millions of yen)Domestic

Overseas

Financial
Results Ended
Mar. 31, 2019

Financial
Results Ended
Mar. 31, 2020

11,789(80.4)

7,745(85.6)（+5.2Pts）

China/Korea

708

422-286-40.4%

ASEAN

1,404

1,393

-11

-0.8%

Americas765-515-1,281

Sub total

2,877(19.6)

1,299(74.4)-1,579（-5.2Pts）

14,6689,044-5,623

Japan(component ratio)(component ratio)

Total©DaikyoNishikawa Corporation All rights reserved.

P.6

Changes(Y on Y)

-4,044

Changes(%)-34.3%-54.9%-38.3%

Outline of segment business performance
Segment

Outline of business performanceJapan SALES：Increased due to an stretched volume of external supplied partsand resin backdoor business, although reduced car unit production was
slow at major customers
 PROFIT：Decreased mainly due to depreciation costs at Headquarters/
Honsha plant and work style reform costs

China/Korea

 SALES：Decreased due to production cuts partly reflected US-China
trade friction PROFIT：Decreased due to reduced car unit production

ASEAN

 SALES：Increased due to production growth in Thailand and Indonesia
 PROFIT：Decreased due to intensifying price competition in Indonesia
and new products launch cost in ThailandAmericas

 SALES： Decreased due to the effects of production cuts by major
customers, although there was molds sales
 PROFIT：Operating loss due to cost reduction and new factory
preparation cost for new US factory©DaikyoNishikawa Corporation All rights reserved.

P.7

Reasons for Increase or Decrease inConsolidated Sales(Millions of yen)
185,000
・Sales of molds broughtby new vehicle launch

184,000
183,000－415－471－4,454

182,000

3,246
181,000

184,314180,000

182,219
・Impact of reduced
production at major customers

179,000
178,000
177,000©DaikyoNishikawa Corporation All rights reserved.

要具売
上

その他
売
上

P.8

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)
16,000・New products launch
cost

14,000－4,726

12,000・Costs of work style reform・Headquarters-related cost・Preparation cost for new US factory

－357
1,251

10,000－1,020

127－904

8,000

14,6216,000

・Changes in sales
composition(product mix)
・Impact of reduced
production at customers

・Depreciation expense ofHeadquarters/Honsha Plant

8,995

4,000
2,0000コスト改善©DaikyoNishikawa Corporation All rights reserved.

ローン
チ
費
用

減価
償
却費

P.9

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 2019 Forecast vs. Result
Due to recording extraordinary loss etc., declined business figuresfrom the FY2019 forecast as of Feb. 12, 2020
(Millions of yen)

FY2019ResultFY2019 Forecast(As of Feb. 12, 2020)

Changes

Changes(%)

Net Sales

183,000

182,219-780-0.4%

Operating
Income9,200

8,995-204-2.2%

Ordinary Income

9,600

9,500-99-1.0%

Net Income
Attributable toOwners of Parent

6,000

4,907-1,093-18.2%

OperatingMargin5.0%

4.9%-0.1Pts－84.68Yen

69.27Yen-15.41Yen－Net Income perShare

©DaikyoNishikawa Corporation All rights reserved.

P.10

Capital Investment, Depreciation and R&D Expenses≪Capital Investment≫
Increased capital investment forHeadquarters/Honsha Plant≪R&D Expenses≫≪Depreciation≫
Depreciation expense ofHeadquarters/Honsha Plant
started in FY2019

Development costs for nextgeneration products

35

5(Billions of yen)(Billionsof yen)
14

(Billions of yen)

30
25.0

124
10.7

25

1020
16.4

15
10

13.1

0

9.1

3.2

9.5
9.0

38
62

9.2
7.2

5

9.3

4
1
20

©DaikyoNishikawa Corporation All rights reserved.

0

P.11

2.9

3.0

3.0

2.9

2. Financial Forecast for Fiscal 2020

©DaikyoNishikawa Corporation All rights reserved.

P.12

Financial Forecast for Fiscal 2020

【Business Environment】■As it remains unclear as to whether infections of the novel
coronavirus will continue to spread or decrease, it is difficult topredict the impact of the government's declaration of a state of
emergency and large-scale economic measures【Financial Forecast for Fiscal 2020】■DaikyoNishikawa has determined that it would be difficult toappropriately and reasonably calculate the forecast of thefinancial results at this time
The forecast of the financial results will be announced promptly
once it becomes possible to make a reasonable calculation©DaikyoNishikawa Corporation All rights reserved.

P.13

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

P.14

Medium-term Business Plan Overview【Changes in business environment】■Economic slowdown in major developed countries such as
Japan, the United States and Europe, and in China and other
Asian countries due to the impact of the novel coronavirus■Decrease in sales volume globally, sales due to the shutdownof Japanese car manufacturers

We will certainly carry out various measures, but it is necessary todetermine the impact of changes in business environment and review©DaikyoNishikawa Corporation All rights reserved.

P.15

中期経営計画概観
Review the impact of the novel coronavirus
Steadily implement initiatives regarding strategy

Medium-Term Business Strategies
1 StrategyCustomer Satisfaction-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

Management base

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

P.16

3. Dividend policy©DaikyoNishikawa Corporation All rights reserved.

P.17

Dividend policy
Dividend policy
Basically, pay stable and continuous dividends, and comprehensively
consider business performance, dividend payout ratio, etc.
FY2013, FY2016：
Excluding commemorative dividend

Payout Ratio

60.0%

43.3%
40.0%
20.0%

19.3%

23.2%

3434

181712161715

FY2016FY2017FY2018FY2019

17.7%

18.9%

28.25

2816.25

1916910.625
5.625

9.25

FY2013

FY2014FY2015

12.4%

17.0%

0.0%
4035
30
25
20
15
1050(Yen)

interim of period30
15

end of period※On January 1, 2016, we split its common stock into four shares.
The annual dividend for FY2013, 2014 and the interim period for FY2015 are calculated as dividends per share, assuming that astock split was conducted.

The forecast of cash dividends for the FY2020 have yet to be determined at this point.
It will be announced once the forecast of the financial results becomes possible to be disclosed.
©DaikyoNishikawa Corporation All rights reserved.

P.18

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 are
subject 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
Corporate Planning Department
Phone: +81-82-493-5610©DaikyoNishikawa Corporation All rights reserved.

Product Information – Automotive Parts
Major ProductInstrument Panel

Sales by ProductBumperTotal: 182.2 billion yen (FY2019)Other

For Mazda, Daihatsu,
and Mitsubishi (Indonesia)

For Mazda, Daihatsu,and Honda

Priority Products
Back Door

Strategic Products
Oil Strainer

Other
Instrument
Interior Parts
PanelEngine
Parts
OtherBumper
Exterior
Parts BackDoor

Strategic Products
Fuel Saucer

Resin Share

No.1

For Daihatsu

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

For Subaru,Mazda, and Daihatsu

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

Outline of Resin Back Door Growth for Daihatsu(Thousand Unit)

Approx.690

700
Approx.620 Approx.620

600
500
400

Started Mass
Production for
Daihatsu Asegment car

Approx.520

Expand in new
B-segment cars

Approx.360

Approx.310

300
200

Expand to B-segmentcars in addition to Asegment cars

Approx.110

1000FY2013

FY2014FY2015FY2016FY2017FY2018FY2019We are also focusing on expanding sales to other than Daihatsu,
and aim to expand recruitment further.
©DaikyoNishikawa Corporation All rights reserved.

Outline of Management index
Operating Margin
30.0%

20.0%

10.0%

ROE

24.5%
18.7%

17.9%

20.4%
14.7%

14.5%
7.3%

9.2%

10.7%

9.2%

10.5%
7.9%

4.9%

0.0%

Consolidated Sales

200.0of yen)(Billions

184.3

182.2

FY2018FY2019

171.9

180.0

160.7
160.0

155.6

134.3

140.0
120.0

6.5%

108.5

100.0

80.0

FY2013

FY2014FY2015©DaikyoNishikawa Corporation All rights reserved.

FY2016FY2017

Sales ratio by customer
Changes in composition ratio spurred by customer diversification(Billion of yen)

2000

Mazda Series

Daihatsu Series

the others

1800
1600

13%

78%

77%

FY2018FY2019

14%

1400

13%

1200

14%

15%

1000
10%

800

6%

6%

600
400

13%

78%

76%

74%
79%

75%

77%

75%

200
0
FY2011FY2012FY2013©DaikyoNishikawa Corporation All rights reserved.

FY2014FY2015FY2016FY2017