Financial Results Briefing for
the Fiscal Year Ended March 31, 2023
June 6, 2023

NIHON TOKUSHU TORYO CO., LTD.
(Stock Exchange Code: 4619, Tokyo Stock Exchange Prime Market)
1

Copyright © NIHON TOKUSHU TORYO CO., LTD. All Rights Reserved.

Contents
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024
3. Overview of the Medium-Term Management Plan (Performance Targets)
4. Overview of the Company’s Businesses
5. Future Growth Strategy(Reference Materials)
1. Company Profile
2. Trends of Primary Management Indicators21. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(1) Summary of Financial Results for the Fiscal Year Ended March 31, 2023
1) Consolidated Statements of Income(Million yen)

FY3/2022
Actualresults

Ratio

Actualresults

YoY change
Ratio

Amount%54,779–60,738–+5,959+10.9%

44,29880.9

49,652

81.7+5,354+12.1%

8,998

16.4

9,454

15.6

+455

+5.1%

Operating profit

1,482

2.7

1,631

2.7

+148

+10.0%

Ordinary profit

2,625

4.8

3,141

5.2

+516

+19.7%

Profit attributable toowners of parent

1,300

2.4

2,103

3.5

+802

+61.7%

Basic earnings per
share¥59.90–¥96.77–+¥36.87–

Net sales
Cost of sales
Selling, generaland administrative
expenses

3

FY3/2023

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(1) Summary of Financial Results for the Fiscal Year Ended March 31, 2023
2) Trends of Consolidated Financial Results (Past Seven Fiscal Years)
Net sales

Net sales(Million yen)

57,26060,00050,00047,99840,0006,741

57,191

54,7795,881*

Ordinary
profit

4,303

3,519

2,403

2,625

2,371

FY3/2017(111th)

9,000

6,000

4,734

10,000060,73848,00430,00020,00059,417

Ordinary profit and shareof profit of entities
accounted for using equity
method(Million yen)

FY3/2018(112th)

1,531

1,287

FY3/2019(113th)FY3/2020(114th)923
FY3/2021(115th)369
FY3/2022(116th)3,141
Share of profit
of entities
accounted forusing equity
method983
FY3/2023(117th)3,0000* Special factors affected net sales in FY3/2017 (Gain on sale of non-current assets in the U.S. of 960 million yen was recorded)41. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(1) Summary of Financial Results for the Fiscal Year Ended March 31, 2023
3) Trends of Consolidated Financial Results(Quarterly Results for the Past Three Fiscal Years)■ Net sales
16,000Automotive products business(Million yen)

Paints & coatings business+ Impact of semiconductors

Impact of COVID-19

12,000
8,000
4,000
0

1Q

2Q

3Q

4Q

1Q

FY3/2021

2Q

3Q

4Q

1Q

FY3/2022■ Operating profit (Segment profit)

2Q

3Q

4Q

FY3/2023(Million yen)

Impact of soaring raw
material prices

1,200
600
0
-600
-1,200

1Q

2Q
FY3/2021

5

3Q

4Q

1Q

2Q

3Q

FY3/2022

4Q

1Q

2Q

3Q

FY3/2023

4Q

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(1) Summary of Financial Results for the Fiscal Year Ended March 31, 2023
4) Composition of Net Sales (By Segment/Main Product)
Paints & coatings business

Automotive products business

Interior, exterior, and roof paints : 1.9%
Floor coating and pavement materials: 4.6%
Waterproofing materials: 8.5%
Aircraft paints : 0.8%
Contracted work: 15.8%

Sound-absorbing and soundinsulating materials: 46.0%

33.9%
66.1%

Other: 2.3%

Rustproof paints &coatings: 8.5%
Vibration-damping materials: 4.4%
Other: 7.2%

6

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(2) Results by Segment
1) Paints & coatings-related businessNet sales

19,351

Net sales

20,565· Paints & coatings: up 7.1% YoY
Sales of paints for buildings andstructures, especially waterproofing
materials and floor coatings,
remained steady.

Profit373(113)
FY3/2022· Construction-related: up 6.1% YoYBusiness scale expansion continued.

FY3/2023(Million yen)

FY3/2022

FY3/2023

YoYchange%Net sales

19,351

20,565+6.3%

Segment
profit

373

(113)

–

1.9%

–

Profitability
7

Segment profit· Although sales increased due to areview of selling prices, the impact ofsoaring raw materials and energy prices
was large.
(See the next page for factor analysis.)1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(2) Results by Segment
1) Paints & coatings-related business
Factor analysis of changes in profit
250

(577)

(Million yen)

373

7

(0.9)

(137)

Fixed expenses
increased(Cost and SG&A)

Personnel expenses
increased

SG&A ratio worsened(Variable costs)

Cost of sales ratio
improved(Variable costs)

Raw material costs
increased

8

Net sales increased

FY3/2022
Actualresults

(30)

(113)
FY3/2023
Actualresults

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(2) Results by Segment
2) Automotive products-related businessNet sales

35,412

Profit1,100

FY3/2022

Net sales

40,157· Net sales increased mainly in soundabsorbing and sound-insulating materials
and coatings due to a recovery inautomotive production.

1,737· Net sales of overseas subsidiaries
decreased slightly at WNA in Wuhan, China,
while sales at TNA in Indonesia contributed
to higher revenues and profits.

FY3/2023(Million yen)

FY3/2022

FY3/2023

YoYchange%Net sales

35,41240,157+13.4%

Segment
profit

1,100

1,737

+57.8%

3.1%

4.3%

Profitability
9

Segment profit· Despite the impact of soaring raw material
and energy prices, the recovery in net sales
led to a significant increase in profit.
(See the next page for factor analysis.)1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(2) Results by Segment
2) Automotive products-related business
Factor analysis of changes in profit
1,872(Million yen)

(737)
(418)

1,100

1,737

FY3/2023
Actualresults(242)

Personnel expenses
increased

SG&A ratio improved(Variable costs)

Cost of sales ratio
worsened(Variable costs)

Raw material costs
increased

10

Net sales increased

FY3/2022
Actualresults

21

Fixed expenses
decreased(Cost and SG&A)

140

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(3) Consolidated Balance Sheets(Million yen)

FY3/2023

FY3/2022
Actualresults

11

Actualresults

Ratio

YoY change

Ratio

AmountCurrent assets

31,85739.9

36,01343.9+4,156

Non-current assets

47,93460.1

46,02056.1(1,914)

Property, plant and equipment

25,071

31.4

24,299

29.6

(772)

Intangible assets

1,265

1.6

1,247

1.5

(18)

Investments and other assets

21,59727.1

20,47325.0(1,123)

Total assets

79,792

100.0

82,033100.0+2,241

Current liabilities

22,27327.9

23,59528.8+1,321

Non-current liabilities

7,792

9.8

6,226

7.6

(1,566)

Total liabilities

30,066

37.7

29,822

36.4

(244)

Shareholders’ equity

38,38348.1

39,592

48.3+1,209

Accumulated other comprehensive
income

5,883

7.4

6,601

8.0

+717

Non-controlling interests

5,458

6.8

6,017

7.3

+559

Total net assets

49,725

62.3

52,211

63.6+2,486

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023
(4) Consolidated Statements of Cash Flows
6,198(1,588)
CF from
investingactivities

8,931
CF from
operatingactivities(2,818)
CF fromfinancing
activities

130

10,853

Effect ofexchangeratechangeCash and cash equivalents
at beginning of fiscal year

Cash and cash equivalents
at end of fiscal year
(Million yen)

FY3/2022

YoY change

6,518

8,931

+2,412

Cash flows from operating activities

5,019

6,198

+1,178Cash flows from investing activities(1,266)(1,588)(322)

Cash flows from financing activities(1,699)(2,818)(1,119)

+358

+130

(228)

8,931

10,853+1,922

Cash and cash equivalents at beginning of fiscal year

Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of fiscal year
12

FY3/2023

2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024
(1) Summary of Consolidated Financial Results Forecast for the Fiscal YearEnding March 31, 2024
(Million yen)
FY3/2023
Actualresults

FY3/2024

Ratio

Forecast

YoY change
Ratio

AmountNet sales

60,738–62,500–+1,761+2.9%

Operating profit

1,631

2.7

2,000

3.2

+368

+22.6%

Ordinary profit

3,141

5.2

3,450

5.5

+308

+9.8%

Profit attributableto owners of parent

2,103

3.5

2,200

3.5

+96

+4.6%

Basic earnings per
share¥96.77–¥101.17–+¥4.40–* Forecast for FY3/2024
Share of profit of entities accounted for using equity method: Approx. ¥1.0 billion
Assumed exchange rate: US$1 = ¥135
13%

2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024
(2) Results by Segment
Net sales: Demand is recovering, especially in Japan. We will continue to review selling prices.
Profit: Affected by soaring raw materials and energy prices.
Paints & coatings-related business

Automotive products-related businessNet sales

44,200Net sales

20,56540,15718,300

Profit250

Profit

1,737

1,750

FY3/2024

FY3/2023

FY3/2024(113)
FY3/2023

Plan(Million yen)

(Million yen)

YoYchangeYoYchangeFY3/2023

FY3/2024

20,56518,300(11.0%)

Segment profit

(113)

250

–

Profitability

–

1.4%

Net sales

14

Plan

FY3/2023

FY3/2024

Net sales

40,157

44,200+10.1%

Segment profit

1,737

1,750

+0.7%

Profitability

4.3%

4.0%

%

%

2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024
(2) Results by Segment (Paints & coatings-related business)■ Contracted work
(large-scale renovation work for condominiums)
A subsidiary of the Company, NITTOKU MENTE, undertakes
large-scale renovation and repair work for condominiums andother properties (expanded to eight locations nationwide,
mainly in major metropolitan areas).
Trends of net sales of NITTOKU MENTE
9,148(Million yen)

9,620

8,000

5,031
4,000

0

FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 FY3/2023 FY3/2024(112th)(113th)(114th)(115th)(116th)(117th)(118th)Plan
15

Renovation of condominiums by NITTOKU MENTE2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024
(3) Capital Expenditures and Depreciation
1) Capital expenditure (Construction Basis)(Million yen)

12,000· Large-scale investments will
decrease.

9,393
8,000

6,295
4,397

4,000

0

Capital expenditure

4,743

3,614

2,208

1,250

· We will continue to review newinvestments for the time being
based on trends in orders received
and other factors.

FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 FY3/2023 FY3/2024(112th)(113th)(114th)(115th)(116th)(117th)(118th)Plan2) Depreciation(Million yen)

6,000

3,518

4,000

3,644

· Depreciation will gradually
decrease for the time being.

3,654
3,198

2,945

Depreciation

3,179

3,065

2,000

· There has been an impact ofapplying the revenue recognition
standard from FY3/2022. (Both net
sales and expenses have decreased.)0

FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 FY3/2023 FY3/2024(112th)16(113th)(114th)(115th)(116th)(117th)(118th)Plan

3. Overview of the Medium-Term Management Plan (Performance Targets)
Performance Targets(Final fiscal year: FY3/2025)

Net sales ¥65.0 bn. / Ordinary profit ¥6.1 bn. / ROE 10.0% or more
Net sales
65,000 Ordinary profit

Net sales(Million yen)

60,00059,41757,191

Ordinary
profit40,00030,00012,00054,77948,00450,000(Million yen)

60,738

6,100
4,734

8,000

4,303

20,000

2,403

2,625

FY3/2021(115th)FY3/2022(116th)

3,141

4,000

10,0000FY3/2019(113th)FY3/2020(114th)Previous Medium-Term Management Plan Period
17

FY3/2023(117th)FY3/2025(119th)Medium-Term Management Plan to FY3/2025

03. Overview of the Medium-Term Management Plan (Performance Targets)Profit Return
Based on stable dividends (stable dividends and extra), we made a decision by comprehensively
taking into account such factors as the enhancement of funds for strategic investments,
financial position and profit level, and dividend payout ratio (target of 30%).
Annual dividends
per share

Annual dividends
per share (Yen)

45.0

¥28

64.1%

66.8%

28.4%

15.0

13.0%
0.0

38.0%

¥38

¥40

FY3/2017(111th)17.9%

FY3/2018(112th)FY3/2019(113th)FY3/2020(114th)FY3/2021(115th)FY3/2022(116th)¥44Consolidated
payout ratio
(%)

30.0

¥32

¥36

¥40 *

¥42

43.4%

43.5%

FY3/2023(117th)FY3/2024(118th)Consolidated
payout ratio (%)
90.0

60.0

30.0

0.0

Plan
* The figure in FY3/2020 (114th) includes the 90th anniversary commemorative dividend of ¥2 (ordinary dividend of ¥38).
18

4. Overview of the Company’s Businesses(1) Main Products for Paints & Coatings-related Business>■ Paints for buildings and structures
We develop and sell a variety of functional paints and coatings,
including interior and exterior materials, floor coating and pavement
materials, waterproofing materials, and coatings for roofs.

Floor coating materials ”U-TACK E-40”(Hakodate General Rolling Stock Depot for
Hokkaido Shinkansen)

Quick curing elastic PRF waterproofing
material “Tough Seal Waterproofing
Method” (SAKA NO UE NO KUMOMUSEUM)

Thermal insulating paints protect theentire building from heat, including roofs,
exterior walls, rooftops, and balconies,
providing high energy-saving and powersaving effects.

Thermal insulating paintings for roofs
and exterior walls “Parathermo” (Sanuki
Livestock Processing Cooperative)■ Aircraft paints
SKY-HULLO, an aircraft paint that protects
aircraft bodies from harsh environments, hasbeen adopted by commercial airlines,
Japanese government aircraft, speciallypainted aircraft of various airlines, as well as
the Japan Aerospace Exploration Agency’s
lunar orbiter KAGUYA.
19

AIR DO specially painted aircraft, Bear Do
Hokkaido Jet

The Japan Aerospace
Exploration Agency’s lunar
orbiter KAGUYA

4. Overview of the Company’s Businesses(1) Main Products for Paints & Coatings-related Business>■ Contracted work (large-scale renovation of
housing complexes)
A subsidiary of the Company, NITTOKU MENTE,
undertakes large-scale renovation and repair workfor condominiums and other properties.
NITTOKU MENTE· Offices: Tokyo, Osaka, Nagoya, and others (eight offices nationwide)· Net sales: Approx. ¥9.5 billion (FY3/2023)· Shareholder: The Company and Sekisui Aqua Systems Co., Ltd.

■ Soundproof materials forbuildings and structures

A vibration-damping material “IDIKELL
M-3500SS” adopted for “NOEVIRSTADIUM KOBE” (dome roof part)20■ Soundproof materials forrailway vehicles■ DIY products

Kyushu Shinkansen N700 Series “SAKURA”

DIY products

4. Overview of the Company’s Businesses(2) Main Products for Automotive
Products-related Business■ Sound-absorbing &sound-insulating
materials

RIETER ULTRA LIGHT TM is a registered trade markof Autoneum Management AG.

Automotive soundabsorbing material“Transmission Insulator”

Automotive
soundabsorbing
material“Soundabsorbing
duct”

Ultra-light sound-proofing
system component“RIETER ULTRA LIGHT TM”
Automotive soundabsorbing material“Rear sound-absorbing
wheelhouse liner”

Automotive sound-absorbing material“Hood insulator”

Automotive sound-absorbing
and sound-insulating materials“Dash outer insulator”
Automotive
sound-absorbing
material“Sound-absorbing
floor undercover”

Automotive sound-absorbing material“Sound-absorbing engine undercover”
21

Automotive sound-absorbing
material “Heat insulator”
Automotive sound-absorbing material“Front wheelhouse liner”

Automotive sound-absorbing and sound-insulating materials“Floor carpet”

4. Overview of the Company’s Businesses(2) Main Products for Automotive Products-related Business■ Vibration-damping andRustproof Materials

Typical sections to which automotive
rustproof materials and sealants areapplied“NT Guard Coat”(PVC-based)

Coating-type vibration-damping
material “NT Damping Coat”“Sealtop”

22

Automotive vibration-damping material“MELSHEET”“NT Guard Coat”(PVC/urethane-based)5. Future Growth Strategy

Basic Strategies of the Medium-Term Management Plan
(FY3/2022 to FY3/2025)(1) Build a stable revenue base for domestic businesses(2) Reinforce “Nittoku, the technical specialist” and develop
new technologies and products(3) Strengthen global development(4) Promote digital transformation (DX)
(5) Promote sustainability management235. Future Growth Strategy(1) Build a stable revenue base for domestic businesses■ Business restructuring(Reallocation of resources to growing departments and consolidation of
unprofitable departments)
Terminate and consolidate the automotive products businesses at the
Hiratsuka Plant, aiming to build a revenue base and increase corporate
value by investing in the following businesses as a dedicated paints
and coatings plant.

Paints and Coatings■ Production streamlining and profit improvement through an

integrated production system (Relocation of plants, consolidation of

manufacturing departments, and optimization of flow lines in plants)· Relocate plants with the aim of manufacturing urethane resins for waterproofingand emulsion resins for water-based paints and coatings, and integrated
production of paints and coatings products.
· Transfer manufacturing departments from other offices to improve production
efficiency and reduce costs.
· Optimize flow lines for product manufacturing, raw materials/products storage,
and shipping areas.
245. Future Growth Strategy(1) Build a stable revenue base for domestic businesses
Automotive Products■ Improve productivity through new production methods andstreamlining of production processes (improve production capacity
and investment efficiency of dash insulators, our main products)
We have already established the key technology for the new production
method. We will complete the verification test by the end of fiscal year 2023
and move on to verification in the mass production process from fiscal year
2024. Specific production preparations are scheduled for 2025.

■ Improve efficiency by consolidating production (consolidate
production of automotive vibration-damping materials to a partnercompany)
The production of vibration-damping materials at the Hiratsuka Plant will end on
March 31, 2024. We will consolidate the production to a partner company topromote efficiency.
We have started the transfer in October
2022. The transfer is progressing smoothlywith the approval of our customers(automotive manufacturers).
25

5. Future Growth Strategy(2) Reinforce “Nittoku, the technical specialist” and develop newtechnologies and products
Paints and Coatings■ Urethane waterproofing materials (products that do not containspecified chemical substances, MOCA and lead catalyst (2023))
Automotive Products(Parts)■ Formulate the planning of electric vehicle NV management and a new
acoustic concept (expand parts portfolio by leveraging vehicle NV
management technology (strength))· Develop products that meet the needs for measures against rear tire noise and rear
wheel drive motor noise, which were clarified through advance development.
· Respond to changes in the new car body structure
unique to electric vehicles (Cell to Chassis [CTC] and air
conditioning unit layout change).
· We aim to establish our new acoustic concept during
fiscal year 2023.

26

5. Future Growth Strategy(2) Reinforce “Nittoku, the technical specialist” and develop newtechnologies and products
Automotive Products(Parts)■ Develop new products that meet needs for BEVs and ease ofdisassembly (soundproof products for the mid-frequency range)· Start development of products that meet the needs for countermeasuresagainst the mid-frequency range for battery electric vehicles (BEVs) and theneeds for easy disassembly due to growing awareness of end-of-life vehicle(ELV) recycling.
· Set a target of completing the development of new functional products that
contribute to improved NV performance in the mid-frequency range by theend of the first half of 2024 and applying them to 2026 models.
· Aim to increase sales of carpets andflooring materials by 25% by acquiring
new businesses.

27

5. Future Growth Strategy(2) Reinforce “Nittoku, the technical specialist” and develop newtechnologies and products
Automotive Products(Coatings)■ Develop new products, coatings for battery (Start the developmentof coatings for BEV battery for purposes of thermal management
and sealing)· Respond to customer needs with our proprietary formulation
technology that combines existing functional technologies.
· Aim to complete the development of products for thermal
management and sealing by the end of 2024 to increase sales
additionally by 10%.

28

5. Future Growth Strategy(3) Strengthen global development
Paints and Coatings■ Develop new overseas markets
Strengthen sales of high-value-added products that meet diverse needs,
including waterproofing materials, floor coating materials, and thermal
insulating paints, mainly to China and Southeast Asia.
Automotive Products■ Consider expanding investment in Indian JV
Respond to moves by Japanese OEMs to expand/strengthen productionin India.
■ Promote product collaboration toward carbon neutrality· Autoneum (parts)
Strengthen products that meet BEV needs.
· EMS-EFTEC (coatings)
Strengthen low-temperature/room-temperature
curing type products.
29

5. Future Growth Strategy(4) Promote digital transformation (DX)
Paints and Coatings■ Improve operational efficiency using AI(examination of paints formulation)
Incorporate AI into the database of existing technologies tostreamline development processes. Utilize the reduced man-hours
and improve the quality of operations.
Automotive Products■ Improve operational efficiency by utilizing AI(promote human resource development and improve operational
efficiency through AI-based innovation)
Developed an AI algorithm that predicts the composition of soundproof
materials that will achieve the desired NV performance using proprietary
programming technology by fiscal year 2022.
Complete machine learning of measured data during fiscal year 2023 andincorporate it into performance development work from the next fiscal
year. Aim to reduce man-hours for performance forecasting work by 30%.
30

5. Future Growth Strategy(5) Promote sustainability management
Paints and Coatings■ Expand environmentally conscious products (strengthen and expand
thermal insulating paints and other products that contribute to CO2emissions reduction)

31

5. Future Growth Strategy(5) Promote sustainability management
Automotive Products■ Project promoting local production for local consumption(in collaboration with Chubu Bureau of Economy, Trade and Industry,
and Toyota Motor Corporation)
As part of promoting circular economy and carbon neutrality, we areworking with Chubu Bureau of Economy, Trade and Industry, and Toyota
Motor Corporation for a project promoting local production for local
consumption of waste resources across industries in the Chubu region.
We will establish a system for stable procurement of materials to meet theever-increasing demand for recycled fibers.

32

Increasing use of recycled fibers for interior materials

Scheme for recycling and utilization of textile industry scraps

5. Future Growth Strategy(5) Promote sustainability management
Automotive Products■ Develop new products (develop proprietary technologies forsynthetic fiber sustainability)· Set a target of completing the commercialization of our patented
technology dedicated to synthetic fiber sustainability by 2025.
· Aim to achieve a 50% reduction in product LC-CO2 emissions byminimizing the amount of scrap materials generated during the
manufacture of automotive exterior parts to as close to zero as possible
and by replacing petroleum-based virgin materials with recycledmaterials.
· Endeavor to increase sales in the exterior parts field by 20% by taking
advantage of the benefits of improved product functionality and costcompetitiveness resulting from the application of our patent technology.

33

5. Future Growth Strategy(5) Promote sustainability management
Company-wide■ Realize carbon neutrality
Launch a carbon neutrality project to halve
CO2 emissions in fiscal year 2030 andachieve carbon neutrality through all
products and corporate activities by 2050.
Solar power generation facilities
installed at the Aichi Plant

Image of CO2 emission reduction
Realizecarbonneutrality· Energy saving and highefficiency· Introduction and procurementof renewable energy· Fuel conversion· Technological innovation, etc.

Current
situation
342050

5. Future Growth Strategy(5) Promote sustainability management
Company-wide■ Reinforce human resource development and promote job satisfaction
reformReinforce human resource development to support sustainable growth(expand training and educational opportunities) and promote the creationof a vibrant workplace with job satisfaction (diversity and diverse work
styles).
■ Strengthen governance
Promote measures based on the intent of each principle set forth in theJapan’s Corporate Governance Code issued by Tokyo Stock Exchange tostrengthen group governance and achieve company-wide growth.
■ Promote CSR- and sustainability-oriented measures
In addition to establishing a compliance system, we are focusing on
formulating policies to promote sustainability management, identifying
materiality issues, and establishing a management system based onthem as well as issuing integrated reports.
35

5. Future Growth Strategy(6) Initiatives to improve market capitalization of tradable shares
As of the transition record date (June 30, 2021), the criteria for market capitalizationof tradable shares among the criteria for maintaining listing in the prime market
were not met. Therefore, we are promoting the following initiatives:■ Planning period To FY3/2025■ Initiatives to improve market capitalization· Promote basic strategies based on the Medium-Term Management Plan
· Enhance shareholder returns· Promote sustainability management· Strengthen IR activities
Enhance disclosure of information in English, increase our recognition
among investors, and promote dialogue.

■ Initiatives to improve the ratio of tradable shares· Eliminate and reduce cross-shareholdings and strategic shareholdings· Consider and implement measures for effective use of treasury shares

36Reference Materials
1. Company Profile
2. Trends of Primary Management Indicators

371. Company Profile(1) Company Profile■ Trade nameNIHON TOKUSHU TORYO CO., LTD.

■ Head office

3-23-2, Oji, Kita-ku, Tokyo■ Established

June 1, 1929

■ Share capital

4,753.08 million yen■ Number of shares issued

23,611,200 shares■ Consolidated number of employees

1,255 (as of March 31, 2023)* Excluding temporary employees

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1. Company Profile(2) Officers and Executive Officers (company with a board of auditors)
As of March 31, 2023

■ Directors
ChairmanCEO

39■ Auditors
Masahiro Nojima

Vice Chairman
CFO

Jun TayaPresident
COO

Hiroshi Onda

Director

Hisaya Yamaguchi

Director

Yoshihiko Yasui

Director

Yoshihiko Doi

Director

Hiroshi Suzuki

Director

Shin Nakamura

Outside Director

Michihiro Nara

Outside Director

Kozo Yabe

Full-time Auditor

Hirokazu Kawana

Outside Auditor

Yoshiki Takahashi

Outside Auditor

Hitoshi Matsufuji■ Executive Officers
Executive Officer

Michio Nagumo

Executive Officer

Hiroyuki Kurihara

Executive Officer

Yuji Fukutomi

Executive Officer

Yosuke Rikibu

1. Company Profile(3) Corporate Principle and Philosophy

Corporate Principle
Ingenuity
Corporate Philosophy
To contribute to society by offering prominenttechnology and products.
To promote the interests of stockholders and respect
each employee’s personality.
To pursue prosperity in harmony with the environment
and in accordance with global standards.
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1. Company Profile(4) Business Policy and Long-term Vision

Business Policy
Under our corporate principle "Ingenuity", we respond to customers' demands andreliance with unique technology and products.
As an active corporation in the world, we organize all of our knowledge and efforts
for the development of new products and demands.
We educate employees and promote their talents, while eliminating all wastefulness
and pursuing high productivity and profits.

Long-term Vision
We aspire to be a company that contributes to society by creating a comfortableenvironment with our mainstay products of paints, coatings, and soundproof
materials.
We aim to make a further leap forward so that we will be needed and trusted allover the world.
We create a vibrant company with job satisfaction where employees are valued
according to their achievements.
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1. Company Profile(5) Major facilities in Japan■ Head Office and R&D Division/Center

Head Office■ Six Plants in Japan

Hiratsuka Plant

Shizuoka Plant

Aichi Plant

Hiroshima Plant

Kyushu Plant

Higashi Kyushu Plant

R&D Center

R&D Laboratory for
Paints and Coatings42

1. Company Profile(6) History (a)■ History of paints & coatings business from its founding
1929: Started with the development of paints for aircraft as a limited partnership company.
1930: Developed the TT METAL PAINT.
1951: Developed the SLECOAT, paints for cement roofs.
1966: Entered the construction industry with the development of the PROOFLON
waterproof roof coating products.
1973: Developed the U-TACK, floor-coating products.
1975: Polyurethane coating for aircraft used for Japan Airlines jumbo jets.
1983: Nittoku's reputation was further solidified as the technical specialist throughthe development of the HI-PROOF, superelastic waterproof wall-coating products.
1995: Developed the SKY-HULLO TOPCOAT FLV.
1999: The SKY-HULLO E used on the H-II rockets.
2001: Developed the PARATHERMO thermal-insulating paints for roof and exterior walls.
2011: Developed the SILVIA CERATY with function of ultra low contamination equivalent to photocatalytic coating.
2012: Developed the U-TACK COMPLETE, organic/inorganic hybrid floor-coating products.
2013: Developed the WIND-HULLO TOPCOAT F for wind power generation blades.
2014: Developed the PROOFRON ECO DX, environmentally responsive waterproofing coating
material for construction.
2017: Developed the POOL ACE ECO which meets school environmental hygiene standards and other standards.

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1. Company Profile(6) History (b)■ Entering the automotive products business and establishingsoundproof material technology
1953: Developed the NITTOKU-UNDERSEAL, automotive soundproof and rustproof coating products).
1964: Launched the MELSHEET, automotive vibration-damping sheets, and began operations as a manufacturer ofsoundproof materials.
1967: Signed a technology agreement with Matec Holding AG (presently Autoneum Holding AG), a manufacturer ofsoundproof materials.
1968: Developed the TACA, sound-absorbing material.
1969: Established basic technology in the field of automotive soundproof materials with the development of the
TACAPOR, sound-insulating material.
1970: Developed Dash Insulators, automotive sound-insulating materials.
1978: Developed Bonnet Liner, automotive sound-absorbing materials.
1988: Signed a cross-licensing agreement with Ems-Togo Holding AG (presently EFTEC).
2001: Achieved a weight reduction of 30% to 60% compared to conventional products with the development of RIETERULTRA LIGHT TM*, an ultra-light soundproof system parts.
2003: Developed Wheelhouse Liners, automotive sound-absorbing materials.
2010: Developed Floor Carpets and Floor Undercovers, automotive
sound-absorbing and sound-insulating materials.
2016: Introduced the Injection Fiber Process (IFP) for variation of Floor Carpets andthe Hybrid Acoustics (HA) technology for variation of RIETER ULTRA LIGHT TM*.
* RIETER ULTRA LIGHT TM is a registered trademark of Autoneum Management AG.
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1. Company Profile(7) Global Development (Automotive Products-related Business)■ History

45

1967

Signed a technology agreement with Matec Holding AG(presently Autoneum Holding AG)

1986

Established UGN, Inc. in the U.S.

1994

Established SNC Sound Proof Co., Ltd. in Thailand.

2003

Established Autoneum Nittoku (Guangzhou) Automotive
Sound-Proof Co., Ltd. (ANG) in China.

2004

Established Tianjin Autoneum Nittoku Automotive Sound-ProofCo., Ltd. (TAN) in China.

2005

Established SRN Sound Proof Co., Ltd. in Thailand.

2008

Established Autoneum Nittoku Sound Proof Products India Pvt.
Ltd. (ANIS) in India.

2010

Established Wuhan Nittoku Autoneum Sound-Proof Co., Ltd.
(WNA) in China.

2012

Established PT. Tuffindo Nittoku Autoneum (TNA) in Indonesia.

2013

UGN, Inc. established a new plant in Mexico (plant relocated in
2017)

2019

Established Wuhan Nittoku Autoneum Auto Parts Co., Ltd.
(a subsidiary of WNA) in China.

▲ Unikeller Institute in Switzerland(at the time)▲ United Globe Nippon, Inc. (at the time)▲ SNC Sound Proof Co., Ltd.

▲ Autoneum Nittoku (Guangzhou)
Automotive Sound-Proof Co., Ltd. (ANG)▲ Tianjin Autoneum Nittoku Automotive ▲ SRN Sound Proof Co., Ltd.
Sound-Proof Co., Ltd. (TAN)▲ Autoneum Nittoku Sound Proof
Products India Pvt. Ltd. (ANIS)▲ Wuhan Nittoku Autoneum Sound-ProofCo., Ltd. (WNA)▲ P.T. Tuffindo Nittoku Autoneum (TNA) ▲ UGN Mexico

1. Company Profile(7) Global Development (Automotive Products-related Business)■ Global network (current situation)
Consolidated
subsidiary

Company accounted forusing equity method

Wuhan Nittoku Autoneum Sound-ProofCo., Ltd. (China)
Wuhan Nittoku Autoneum Auto Parts
Co., Ltd. (China)

Tianjin Autoneum Nittoku Automotive
Sound-Proof Co., Ltd. (China)

Company accounted forusing equity method

UGN, Inc. Head Office (U.S.)

Consolidated
subsidiary

Company accounted forusing equity method

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Autoneum Nittoku (Guangzhou) Automotive
Sound-Proof Co., Ltd. (China)

PT. Tuffindo Nittoku Autoneum (Indonesia)

Company accounted forusing equity method

Company accounted forusing equity method

Non-consolidated
subsidiary

SNC Sound Proof Co., Ltd. (Thailand)

SRN Sound Proof Co., Ltd. (Thailand)

Autoneum Nittoku Sound Proof Products India Pvt. Ltd. (India)

1. Company Profile(7) Global Development (Automotive Products-related Business)■ Global partner
Autoneum Holding AG
1) Technical alliance with Autoneum (soundproof parts)
Alliance over 50 years since 1967
Global strategies
Sharing of acoustic analysis technology, evaluation technology, and product development
Establishment of JV with us in North America and other Asian countries

2) Overview of Autoneum Holding AG· A listed company (SIX Swiss Exchange)· Net sales of CHF 1,700.4 million (approx. 230 billion yen)
· Headquartered in Switzerland with 53 offices/plants globally in 24 countries· Number of employees (group-wide): Approx. 11,800· A leading manufacturer of soundproof materials that supplies products to the global
automotive industry in the fields of automotive acoustic products and thermal management
measures, with the world’s leading acoustic analysis and evaluation technologies and thermal
analysis technology
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1. Company Profile(7) Global Development (Automotive Products-related Business)■ Global partner
EMS-EFTEC
1) Overview of EMS-EFTEC· A subsidiary of EMS-CHEMIE HOLDING AGEMS Group· High Performance Polymers business of the EMS GroupNet sales of approx. CHF 2,000 million* (approx. 270 billion yen) * Entire business including EFTEC· Headquartered in Switzerland, expanding into North, Central and South America, China,
Thailand, India, etc., mainly in Europe

2) Product Line of EMS-EFTEC· Adhesives, coatings, sealants, and vibration-damping materials for
sheet metal, assembly, and painting processes48

2. Key Financial Performance Indicators (Consolidated)
FY3/2014

FY3/2015

FY3/2016

FY3/2017

FY3/2018

FY3/2019

FY3/2020

FY3/2021

FY3/2022

FY3/2023

39,391

39,57043,812

47,99857,26059,41757,191

48,00454,77960,738

1,303

1,629

2,961

3,162

3,286

2,973

2,827

858

1,482

1,631

3,328

4,036

5,533

6,741

5,881

4,734

4,303

2,403

2,625

3,141

2,712

3,029

3,966

4,778

3,960

2,795

2,318

1,301

1,300

2,103

122.69137.00179.37216.11

179.12126.74105.34

59.27

59.90

96.77

47,96053,42856,894

66,98776,65573,572

72,06775,502

79,792

82,033

26,794

31,38534,23539,53943,674

43,95845,06247,15449,72552,211Dividends (yen)

12.0

12.0

20.0

28.0

32.0

36.0

40.0

38.0

40.0

42.0

Payout ratio (%)

9.8

8.8

11.2

13.0

17.9

28.4

38.0

64.1

66.8

43.4

Equity ratio (%)

53.6

56.2

57.1

54.9

52.5

54.7

56.8

56.4

55.5

56.3

ROE (%)

11.7

10.9

12.7

13.8

10.3

6.9

5.7

3.1

3.0

4.6

Net sales(Million yen)

Operating profit(Million yen)

Ordinary profit(Million yen)

Net profit(Million yen)

Basic earnings per
share (yen)Total assets(Million yen)

Net assets(Million yen)49

Contact for IR
Financial & Accounting Division, Operating Planning &Coordination Group, NIHON TOKUSHU TORYO CO., LTD.
(Phone: +81-(0)3-3913-6134)
This document is for the sole purpose of providing information toinvestors and is not for the purpose of soliciting investments.
The forward-looking statements in this document are based on
information available at the time the document was prepared andinclude potential risks and uncertainties. Accordingly, actual results may
differ from these forecasts due to various factors.
The content of this document is subject to change without prior notice.

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