Financial Results Briefing for
the Fiscal Year Ended March 31, 2024
May 31, 2024

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

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

Contents
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (FY23)
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (FY24)
3. Overview of the Company’s Businesses
4. Future Growth Strategy(Reference Materials)
1. Company Profile
2. Trends of Primary Management Indicators

Note: The fiscal years (FY) referred in this document start on April 1st and end on March 31st of
the following years.
For example, FY23 starts on April 1st 2023 and ends on March 31st 2024.
2

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(1) Summary of Financial Results for the Fiscal Year Ended March 31, 2024
1) Consolidated Statements of Income(Million yen)

FY22
Actualresults

Actualresults

Ratio

YoY change
Ratio

Amount%60,738–64,693–+3,955+6.5％

49,652

81.7

50,69878.4+1,046

+2.1％

9,454

15.6

10,089

15.6

+634

+6.7％

Operating profit

1,631

2.7

3,905

6.0

+2,274+139.4％

Ordinary profit

3,141

5.2

5,963

9.2

+2,821+89.8％

Profit attributable toowners of parent

2,103

3.5

3,947

6.1

+1,844+87.7％

Basic earnings per
share¥96.77–¥181.57–+¥84.80–

Net sales
Cost of sales
Selling, generaland administrative
expenses

3

FY23

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(1) Summary of Financial Results for the Fiscal Year Ended March 31, 2024
2) Trends of Consolidated Financial Results (Past Seven Fiscal Years)

Net sales

Net sales(Million yen)

60,00057,26059,417

5,963
4,734

2,403

2,371

10,0004FY17(112th)FY18(113th)

6,000

4,303

3,141

1,531

0

Ordinary
profit5,881

30,00020,0009,000

54,77948,00450,00040,00060,73857,19164,693

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

1,287

FY19
(114th)923

FY20(115th)

2,625

369
FY21
(116th)983

FY22(117th)Share ofprofit ofentities
accounted
for usingequitymethod

3,000

1,371

FY23
(118th)01. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(1) Summary of Financial Results for the Fiscal Year Ended March 31, 2024
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 COVID-19& semiconductors

12,000
8,000
4,000
0

１Q

２Q

３Q

４Q

１Q

FY21

２Q

３Q

１Q

２Q

FY22

■ Operating profit (Segment profit)
1,200

４Q

３Q

４Q

３Q

４Q

FY23

(Million yen)

Impact of soaring
原材料⾼影響
raw material prices

600
0
-600
-1,200

１Q

２Q
FY21

5

３Q

４Q

１Q

２Q
FY22

３Q

４Q

１Q

２Q
FY23

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(1) Summary of Financial Results for the Fiscal Year Ended March 31, 2024
4) Composition of Net Sales (By Segment/Main Product)
Paints & coatings business

Automotive products business

Interior, exterior, and roof paints: 1.8%
Floor coating and pavement materials: 4.9%
Waterproofing materials: 8.3%
Aircraft paints: 0.9%
Contracted work: 13.6%
Other: 2.4%

Rustproof paints & coatings
Sharing and leveraging
technology and knowledge forpaints & coatings / automotive
products
6Sound-absorbing and soundinsulating materials: 49.3%

31.9%
68.1%

Vibration-damping materials: 4.1%
Other: 5.3%
Rustproof paints & coatings: 9.4%

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(2) Results by Segment
1) Paints & coatings-related businessNet sales

Net sales

20,612

20,565· Paints & coatings: up 7.6% YoY
Sales of paints for buildings andstructures, especially waterproofing
materials and floor coatings,
remained steady.

456

Profit(113)· Construction-related: down 8.0% YoY

FY22Business scale expansion continued.

FY23(See the next page)(Million yen)

FY22

FY23

20,565

20,612+0.2%

Segment profit

(113)

456

–

Profitability

–

2.2%

Net sales

7

YoY change%

Segment profit· Sales increased due to review of selling
prices. Profit improved due to lower
raw material ratio in cost.
(See page 9 for factor analysis)

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(2) Results by Segment
1) 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).
Net sales trends of NITTOKU MENTE
9,148(Million yen)

9,620

8,852

8,000

4,000

0

FY18

(113th)8FY19(114th)FY20(115th)FY21(116th)FY22(117th)FY23(118th)FY24(119th)Plan

Renovation of condominiums by NITTOKU MENTE1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(2) Results by Segment
1) Paints & coatings-related business
Factor analysis of changes in profit(Million yen)

663

Personnel expenses
increased

SG&A ratio improved(Variable costs)

Cost of sales ratio
worsened(Variable costs)

Raw material costs
decreased

9

(147)
44

456

FY23
Actualresults

8
Net sales increased

FY22
Actualresults

3

Fixed expenses
decreased(Cost and SG&A)

(113)

(2)

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(2) Results by Segment
2) Automotive products-related businessNet sales

44,066

Net sales

3,439· Net sales increased mainly in soundabsorbing and sound-insulating materials
and coatings due to a recovery inautomotive production.

FY23· Domestic sales recovered despite theimpact of decline in sales of Japanese cars
at WNA in Wuhan, a subsidiary in China.

40,157

Profit

1,737

FY22

(Million yen)

10

YoY change

FY22

FY23

Net sales

40,15744,066+9.7%

Segment profit

1,737

3,439

+98.0%

Profitability

4.3%

7.8％

%

Segment profit· The recovery in net sales led to a significant
increase in profit due to production
expansion and review of selling prices.
(See the next page for factor analysis)

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(2) Results by Segment
2) Automotive products-related business
Factor analysis of changes in profit(Million yen)

452
1,443

67

41
(43)

3,439
(259)

1,737

Fixed expenses
increased(Cost and SG&A)

Personnel expenses
decreased

SG&A ratio worsened(Variable costs)

Cost of sales ratio
improved(Variable costs)

Raw material costs
decreased

11

Net sales increased

FY22
Actualresults

FY23
Actualresults

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(3) Consolidated Balance Sheets(Million yen)

FY23

FY22
Actualresults

12

Actualresults

Ratio

YoY change
Ratio

AmountCurrent assets

36,01343.9

38,55544.1+2,541

Non-current assets

46,02056.1

48,90055.9+2,880Property, plant and equipment

24,29929.6

22,42225.6(1,876)

Intangible assets

1,247

1.5

1,236

1.4

(10)

Investments and other assets

20,47325.0

25,24128.9+4,768

Total assets

82,033100.0

87,456100.0+5,422Current liabilities

23,59528.8

21,40524.5(2,190)Non-current liabilities

6,226

7.6

6,485

7.4

+258

Total liabilities

29,822

36.4

27,89031.9(1,931)

Shareholders’ equity

39,592

48.3

42,60848.7+3,016

Accumulated other comprehensive
income6,601

8.0

10,78912.3+4,187

Non-controlling interests

6,017

7.3

6,168

7.1

+150

Total net assets

52,211

63.6

59,56568.1+7,354

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024
(4) Consolidated Statements of Cash Flows
9,317

533
CF from
investingactivities

10,853(5,092)265
CF fromfinancing
activities

15,876

Effect ofexchangeratechange

CF from
operatingactivities

Cash and cash equivalents
at beginning of period

Cash and cash equivalents
at end of period(Million yen)

FY22

YoY change

8,931

10,853+1,922

Cash flows from operating activities

6,198

9,317

+3,118Cash flows from investing activities(1,588)533+2,121

Cash flows from financing activities(2,818)(5,092)(2,274)

+130

+265

+134

10,853

15,876+5,023

Cash and cash equivalents at beginning of period

Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period
13

FY23

2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025
(1) Summary of Consolidated Financial Results Forecast for the Fiscal YearEnding March 31, 2025

(Million yen)

FY23
Actualresults

FY24
Ratio

Forecast

YoY change
Ratio

AmountNet sales

64,693–

62,100–(2,593)(4.0%)

Operating profit

3,905

6.0

2,800

4.5

(1,105)(28.3%)

Ordinary profit

5,963

9.2

4,300

6.9

(1,663)(27.9%)

Profit attributableto owners of parent

3,947

6.1

2,900

4.7

(1,047)(26.5%)

Basic earnings per
share¥181.57–¥133.38–(¥48.19)–* Forecast for FY24
Share of profit of entities accounted for using equity method: Approx. ¥1.3 billion
Assumed exchange rate: US$1 = ¥142
14%

2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025
(2) Results by Segment
Paints & coatings-related business

Automotive products-related businessNet sales

Net sales

20,612

ProfitProfit

3,439

430

456

FY24

FY23

Plan

2,370
FY24

FY23

Plan

(Million yen)

YoYchangeFY23

FY24

20,612

20,500(0.5%)

Segment profit

456

430

(5.9%)

Profitability

2.2%

2.1%

Net sales

41,60044,066

20,500(Million yen)

YoYchange

FY23

FY24

Net sales

44,066

41,600(5.6%)

Segment profit

3,439

2,370

(31.1%)

Profitability

7.8%

5.7%

%

%

* Automotive products-related businessProfitability decreased due to impact of volume decrease and production changeover timing of awarded
models + price giveback and other factors
15

2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025
(3) Revision of the performance targets of Medium-Term Management Plan
The performance target of Medium-Term Management Plan was revised along with
FY24 (119th) forecast, even though the performance target exceeded the expectedline of Medium-Term Management Plan in FY23 (118th).
Net sales(Million yen)

60,00059,41757,191

54,77960,738Net sales

62,100Ordinary profit(Million yen)
12,00048,00450,0008,000

40,00030,00064,693

5,963
4,734

4,303

20,000

2,403

2,625

FY20
(115th)FY21(116th)Ordinary
profit

4,300

3,141

4,000

10,0000FY18(113th)FY19(114th)Period of previous
Medium-Term Management Plan
16

FY22(117th)FY23(118th)FY24(119th)Medium-Term Management Plan to FY24
(Net sales of ¥65.0 billion and ordinary profit of¥6.1 billion in the final year)02. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025
(4) Capital Expenditures and Depreciation
1) Capital expenditure (Construction Basis)
Capital expenditure

Ratio of operating profit: %: Million yen

12,000

15

9,393
7,846

8,000

Ratio ofoperating profit
6.0%(FY23)

6,295
4,397 4,743
4,000

2,698

3,614

5

2,208
1,119

0

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

10

FY23

1,636
FY24
（119th）0

Plan

2) Depreciation
3,518 3,644 3,654
2,945

3,000

3,198 3,179 3,090

2,291

2,876

1,689

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24
（119th）

Plan
17(Investment in dies will decrease due toapplying the revenue recognition
standard.)· We plan to update our investment
plan in the next Medium-Term
Management Plan based on therecovery of profitability and otherfactors.

· Depreciation will gradually
decrease for the time being.

1,500

0

· Large-scale investments will
decrease.

Depreciation

Depreciation ︓Million yen
4,500

Capital expenditure· There has been an impact ofapplying the revenue recognition
standard from FY21.
(Both net sales and expenses havedecreased.)2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025
(5) Dividends

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%).
Annualdividends per
share
Consolidated

Annual dividends
per share (Yen)

45.0

¥28

30.0

¥32

38.0%

¥20

¥38

64.1%

¥40

11.2%

13.0%

FY15
(110th)FY16(111th)FY18(113th)FY19(114th)FY20(115th)FY21(116th)¥48

60.0

payout ratio

FY22(117th)

25.3%

FY23
(118th)

36.0%
30.0

FY24
(119th)Plan* The figure in FY19 (114th) includes the 90th anniversary commemorative dividend of ¥2 (ordinary dividend of ¥38).
18

payout ratio (%)
90.0

Consolidated

43.4%

17.9%

FY17
(112th)

¥42

66.8%

28.4%

15.0

0.0

¥36

¥40*

¥46

0.0

3. 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 KUMO MUSEUM)

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

3. 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. ¥8.8 billion (FY23)· 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

3. 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”

3. 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)4. Future Growth Strategy

Basic Strategies of the Medium-Term Management Plan
(FY21 to FY24)(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4. 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, andoptimization of flow lines in plants)· Relocate plants with the aim of manufacturing emulsion resins for paints andcoatings 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4. Future Growth Strategy(1) Build a stable revenue base for domestic businesses
Automotive Products■ Improve profitability through new production method andstreamlining of production processes(Improve production capacity and investment efficiency of dashinsulators, our main products)· We completed verification using a prototype in FY23 and are on the mass
production preparation stage. Considering new business awards, we will moveup the preparation of mass production line by one year and will start the
preparation in FY24.
· The new production method improves plant production capacity and energy
efficiency by reducing the area occupied by the production line.

■ Improve efficiency by consolidating production(Consolidate production of automotive vibration-damping
materials to a partner company)
The production of vibration-damping materials at the
Hiratsuka Plant was completed as planned on March 31,
2024. We consolidated the production to a partnercompany to improve efficiency in both production andtransportation.
25

4. Future Growth Strategy(2) Reinforce “Nittoku, the technical specialist” and develop newtechnologies and products
Paints and Coatings■ Urethane waterproofing materials(Products that do not contain specified chemical substances, MOCA
and lead catalyst (2024))
Automotive Products(Parts)■ Formulate the planning of electric vehicle noise and vibration (NV)management and a new acoustic concept(Expand parts portfolio by leveraging vehicle NV management technology(strength))26· We completed establishing our new acoustic concept by
FY23 and have worked on developing new product.
· We work on being awarded interior and exteriorsoundproof materials as countermeasure against rear wheel
noise and motor noise of rear wheel drive car, both ofwhich are increasingly in demand.
· Respond to changes in the new car body structure uniqueto electric vehicles (Cell to Chassis [CTC] and air
conditioning unit layout change).

4. 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)· The needs for countermeasures against the mid-frequency range for BEVs and theneeds for easy disassembly due to growing awareness of ELV recycling haveincreased.
 We are working on developing the products that meet those needs(by the end of the first half of FY24)· Regarding new functional products that contribute to NV performance improvementin the mid-frequency range, we are working on the products to be applied to themodels from 2026 onward.
· We aim to increase sales of carpets and flooringproducts by 25% through new businesses acquisition.

BEV: A vehicle that runs solely on battery electricity (electric vehicle)
ELV: In the EU, the ELV Directive sets target recycling rates to reduce the environmental impact of ELVs.
27

4. Future Growth Strategy(2) Reinforce “Nittoku, the technical specialist” and develop newtechnologies and products
Automotive Products(Coatings)■ Develop new products, coatings for battery(Promote the development of coatings for BEV battery for the
purpose of thermal management)· Respond to customer needs with our proprietary formulation technology thatcombines existing functional technologies.
· Aim to increase sales additionally by 10%
by promoting following measures.
- Products with heat-insulating properties:
Development to be completed within 2024
- Products with high heat-transfer properties:
To be proposed to customers by the end of
2024

28

4. 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 and floor coating materials, mainly to China andSoutheast Asia.

Automotive Products■ Consider expanding investment in Asian JV
Respond to moves by Japanese OEMs to expand/strengthen production.

■ Promote product collaboration toward carbon neutrality· Autoneum (parts)
Develop low-CO2 emission products through proactive
use of recycled materials.
· EMS-EFTEC (coatings)
Promote the low-energy products and the products to
be used at assembly shops.
29

4. 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 to streamline
development processes. Utilize the reduced man-hours and improve the qualityof 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 optimal compositionof soundproof products to achieve the desired NV performanceusing proprietary programming technology by FY23 (Machinelearning completed).
· In FY24, successfully developed an in-house application of AI topredict the composition of soundproof products and theoperation has been started. Aim to reduce man-hours for
performance forecasting work by 30%.
30

4. Future Growth Strategy(5) Promote sustainability management
Paints and Coatings■ Expand environmentally conscious products(Strengthen and expand thermal insulating paints and other productsthat contribute to CO2 emissions reduction)

31

4. 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 are working with
Chubu Bureau of Economy, Trade and Industry, and Toyota Motor Corporation on ascheme for local production for local consumption of waste resources in the Chubu
region, and promoting activities aimed at realization in FY24.
· We contribute to the reduction of supply chain CO2 emissions (Scope 3) and theimprovement of the recycled plastic usage ratio in the European ELV regulations
through proactive use of recycled materials.
Material
discarded during
prototyping ofseat cushion

Sound absorbing material under the floor(Checking the size ofurethane crushed)

Seat fabric cuttings

32

Examples of using automative products’ industrial scrap in the Chubu region

4. Future Growth Strategy(5) Promote sustainability management
Automotive Products■ Develop new products(Develop proprietary technologies for synthetic fiber sustainability)· Moving forward by setting a target of completing the commercialization of ourpatented technology dedicated to synthetic fiber sustainability by 2025.
· Aim to achieve a 50% reduction in product LC-CO2 emissions by minimizing theamount of scrap generated during the manufacture of automotive exterior parts
to as close to zero as possible and by replacing petroleum-based virgin materials
with recycled materials.
· Develop high-recycled exterior parts with high acoustic
performance at competitive prices by applying thepatented technology and the Group’s unique,energy-efficient molding process.
Endeavor to increase sales in the exterior
parts field by 20%.

33

4. Future Growth Strategy(5) Promote sustainability management
Company-wide■ Realize carbon neutrality
Launch a carbon neutrality project to halve
CO2 emissions in FY30 and achieve carbon
neutrality through all products andcorporate 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

4. 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 creation of a vibrantworkplace with job satisfaction (diversity and diverse work styles).

■ Strengthen governance
Promote measures based on the intent of each principle set forth in the Japan’s
Corporate Governance Code issued by Tokyo Stock Exchange to strengthen 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, andestablishing a management system based on them as well as issuing integrated
reports.
35

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

36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

1,185 (as of March 31, 2024)* Excluding temporary employees

371. Company Profile(2) Officers and Executive Officers (company with a board of auditors)
As of May 2024

■ Directors
Chairman,CEO■ Executive Officers
Jun TayaPresident,
COO

Hiroshi Onda

Director,
Senior Managing
Executive Officer

Hiroshi Suzuki

Director,
Senior Managing
Executive Officer

Shin Nakamura

Outside Director

Michihiro Nara

Outside Director

Kozo Yabe■ Auditors

38

Full-time Auditor

Hirokazu Kawana

Outside Auditor

Yoshiki Takahashi

Outside Auditor

Hitoshi Matsufuji

Senior Managing
Executive Officer

Hisaya Yamaguchi

Managing Executive
Officer, CFO

Yosuke Rikitake

Executive Officer

Masahide Sakurai

Executive Officer

Shigeo Hirose

Executive Officer

Nobuhiro Tsuchiya

Executive Officer

Koji Nomi

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.
39

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.
40

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 Coatings41

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.

42

1. Company Profile(6) History (b)■ Entering the automotive products business and establishing coating andsound-insulating material technology

43

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 of soundproof materials.

1967:

Signed a technology agreement with Matec Holding AG (presently Autoneum Holding AG), a manufacturer of soundproof 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, soundinsulating material.

1970:

Developed Dash Insulators, automotive sound-insulating materials.

1978:

Developed Bonnet Liner, automotive sound-absorbing materials.
Developed NT Guard Coat, automotive rust-proof materials.

1985:

Developed Bitumen Wax, automotive wax.

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 RIETER ULTRA LIGHT TM*,ultra-light soundproof system parts.

2003:

Developed Wheelhouse Liners, automotive sound-absorbing materials.

2005:

Developed NT Damping Coat, automotive sprayable damping material.

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 and the Hybrid Acoustics (HA) technology for variation of
RIETER ULTRA LIGHT TM*.

2022:

Developed Sealtop (two-component pre-gel type), automotive sealants.

2023:

Developed soundproof floor spacer made of the material recycled from our soundproof parts production.
* RIETER ULTRA LIGHT TM is a registered trademark of Autoneum Management AG.

1. Company Profile(7) Global Development (Automotive Products-related Business)■ History

44

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 in2017).

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

45

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 2,302.3 million (approx. 400.0 billion yen)
· Headquartered in Switzerland, globally operating in 25 countries· Number of employees (group-wide): Approx. 16,500· 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
46

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 2,200 million* (approx. 380.0 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 processes47

2. Key Financial Performance Indicators (Consolidated)
FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

39,57043,812

47,99857,26059,41757,191

48,00454,77960,73864,693

1,629

2,961

3,162

3,286

2,973

2,827

858

1,482

1,631

3,905

4,036

5,533

6,741

5,881

4,734

4,303

2,403

2,625

3,141

5,963

3,029

3,966

4,778

3,960

2,795

2,318

1,301

1,300

2,103

3,947

137.00179.37216.11

179.12126.74105.34

59.27

59.90

96.77

181.5753,42856,894

66,98776,65573,572

72,06775,502

79,792

82,03387,456

31,38534,23539,53943,674

43,95845,06247,15449,72552,21159,565

Dividends (yen)

12.0

20.0

28.0

32.0

36.0

40.0

38.0

40.0

42.0

46.0

Payout ratio (%)

8.8

11.2

13.0

17.9

28.4

38.0

64.1

66.8

43.4

25.3

Equity ratio (%)

56.2

57.1

54.9

52.5

54.7

56.8

56.4

55.5

56.3

61.1

ROE (%)

10.9

12.7

13.8

10.3

6.9

5.7

3.1

3.0

4.6

7.9

Net sales(Million yen)

Operating profit(Million yen)

Ordinary profit(Million yen)

Profit(Million yen)

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

Net assets(Million yen)48

Contact for IR
Corporate Planning Office, NIHON TOKUSHU TORYO CO., LTD.
(Phone: +81-(0)3-3913-6136)

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.