Medium-Term Management
Plan for FY2027

DaikyoNishikawa Corporation
May, 2024©DaikyoNishikawa Corporation All rights reserved.

P.0

Table of Contents

1. Review of the FY2023 Medium-term Management Plan

Page 2

2. Long-Term Vision & FY2027 Medium-term Management Plan

Page 14

3. Outline of the Medium-Term Management Plan for FY2027

Page 21©DaikyoNishikawa Corporation All rights reserved.

P.1

1. Review of the FY2023 Medium-term Management Plan

©DaikyoNishikawa Corporation All rights reserved.

P.2

Review of the FY2023 Mediumu-term Management Plan
Promoting CSR management by solving social issues through business activities
and ensuring profitability
Strengthening CSR Management

Contributing to solving social issues
Managementbase strategy
Work style reform

Industry-UniversityGovernment
Collaboration

Ensuring profitability
D&I
Management

DX

Promotion of BCP

ComplianceDeepening relationships
with stakeholders

Product
strategy

Support for 2-shift of U.S. plant

Promotion of electrification
Tailgate technology innovation

Energy saving
Carbon neutrality©DaikyoNishikawa Corporation All rights reserved.

Customer strategy andlocation strategy
Expansion of OEMs
Seeds Dissemination
Expansion of global sales

Recycling

P.3

MBD

Manufacturing
strategy
Automation

Review of the FY2023 Medium-Term Management
Plan
Strengthening CSR management through reorganization of bases and diverse work styles
Five Years of Achievements and Results
SDGs Declaration

Launch of a specialized
DX organization

Started operation of Honsha plant

Started operation of U.S. plant

U.S. plant to be 2-shifted

Consolidation of headquartersfunctions (relocation to newheadquarters)

Started supplying tailgates for Honda

Began supplying back doors for new Daihatsu models

FY2019Promotion of D&I

Start of carbon neutral activities

FY2020

FY2021
Acquisition of a “kurumin”

FY2022

FY2023

Transition to the TSE Prime Market

Revision of Medium-term Management Plan
Building the DNC brand and promoting shared activities
Reinforcing BCP along with the COVID19
DNC Report Issued
Responding to Diverse Work Styles

Making ourtomorrow

Hiroshima base reorganization completed©DaikyoNishikawa Corporation All rights reserved.

P.4

2023 Medium-term Management Plan
Basic Policy and Evaluation
Steadily promote basic policy based on five strategies
Main Results

Evaluation and review
・Raise awareness of our technological capabilities by actively disseminating seeds

Customer
Strategy◼ Sales growth rate of four strategic
OEMs FY2023：24.7％ increase（compared to previous period）

Location
Strategy◼ Profit and Loss Status of U.S. Plants
FY2023Q4: Operating income returned
to profitability

・Smooth start-up as a highly efficient plant with state-of-the-art facilities and straightproduction concept

Product
Strategy◼ CO2 emissions reduction (product area)
FY2023：18％decrease（compare with steel product）

・Create a roadmap for environmental responsiveness

Manufacturing
StrategyManagement
Base Strategy◼ Percentage of elemental work automatedFY2023：approx.40％ achieved◼ Number of women in managerial andsupervisory positions
Manager: 6 persons (2 in 2020)
Supervisor: 28persons（24 in 2020)©DaikyoNishikawa Corporation All rights reserved.

・New item orders and sales expansion of existing products through increased
RFI/RFQ acquisition

・2-shift operation has started, and profit has improved as a mid-term growth driver・Commenced research on environmental material development, horizontal recycling・Of the 28 elemental tasks, 11 were made in-house and automated.
・Highly efficient production with big data by introducing IoT technology
・Steady progress in expanding systems and improving the environment to promotewomen's activities
・Tripled the number of women in management positions, achieving the FY2025
target ahead of schedule.
P.5

FY2023 Medium-term Management Plan Outcome
Customer and Location Strategy
Sales expansion to strategic 4 OEMs

Overseas Segment Growth

FY2023Sales Growth Rate（compared to previous period）

FY2023Sales Growth Rate（compared to previous period）
Total sales：9.1％ → Overseas sales：30.2％

Total sales：9.1％ → 4 Strategic OEMs：24.7％

Millionsof yen（百万円）

Sales of bumpers and tailgates expanded beyond
Mazda and Daihatsu

Millions of yen（百万円）

Entering into North America, increase in exterior parts in ASEAN

60,00020,00050,00015,00040,00030,00010,00020,0005,000
10,0000

0
FY2020

FY2021

FY2022

FY2023

FY2020

FY2021

FY2022China& Korea
中国・韓国©DaikyoNishikawa Corporation All rights reserved.

P.6

ASEAN
アセアン

FY2023Central& North America
中米・北米

FY2023 Medium-term Management Plan Outcome
Hiroshima base reorganization
Background of the construction of theheadquarters and the Honsha Plant

Goal
Fostering a culture and environment in which employees feel
“fulfilled” and “comfortable” in their work, with an emphasis on“people development”(1) Issue of scattered bases• The Headquarters, the R&D Office, and the Test Center were dispersed in remoteareas, resulting in speed and transportation losses, rental costs, employment
obstacles, and other issues.

(2) Issue with the production preparation process• No place or equipment to examine manufacturing (development, technology,
manufacturing and procurement)• Using mass production equipment on holidays and finding difficulty inconducting sufficient verification activities

Results• Building the Headquarters, the R&D Office, the Test Center, and the Plant
in the same location
Established a technical center for integrated verification and evaluation• Establishing a development system that can handle simultaneous
worldwide launches
Secured equipment and space for off-line development• Securing space for flexible and integrated production lines
Realized straight production from molding to painting and assembly
Ultimate lean production lines using automation and IoT• Taking care of the global environment, the barrier-free environment, thework environment, etc.
(1) Improved development efficiency through function consolidation(2) Reduced travel loss and expenses such as rent

(3) Space issue for future development• Lack of space for introducing new technology and renewing equipment in aplanned manner• Difficulty in pursuing ideal equipment layouts and renewing aging equipment

Relocation of headquarters in January 2020
Consolidation to be completed in FY2022
Headquarters/Plant

Surface area Approx. 60,000 m 2Created a workplace environment where
employees feel fulfilled in their work

New Headquarters/Honsha Plant
Consolidation from 6 to 4 sites
 Former Headquarters (Saka):
Lease terminated R&D Office (Yano): Sold Honsha Plant  Hachihonmatsu
Plant and Yamato Plant: Newfunction and reorganization

EffectCost reduction：1.3billion yen/year
CO2 emission：Headquarters reduced by 60%(against previous HQ)

Honsha plant reduced by 30%(against Hachihonmatsu plant)©DaikyoNishikawa Corporation All rights reserved.

P.7

FY2023 Medium-term Management Plan Outcome
DNUS Operation
Establish a production system to meet customers' increased production and strengthen
ongoing human resource recruitment/training
Production
systemManagement

situation◼ Prior to production increase, improvement of difficult tasks in each process and preemptive hiring of leader
class/training of operators were implemented.
◼ Short-term development to handle mass production by receiving additional orders for parts, and introduction of
automated production lines in sequence.

◼ FY2023Q4: Return to profitability on a non-consolidated basis (operating income)◼ FY2024: Aim to return to profitability (net income) for the full year
Trends inproduction/operating conditions
生産/稼働状況の推移

100%

Return to

マツダ日当たり台数
Production
units per a day for MAZDA

July～

トヨタ日当たり台数
Production
units per a day for TOYOTA

80%

profitability

1100
1000

2 shifts for
MAZDDA

July～

稼働率推移rate
Operating

Profitablefor full
year
1200

900
800

2shifts for
TOYOTA

60%

700
600

October～

40%

500

Started400

operation

300

20%

200
100

0%

Q1

Q2

Q3
FY2021©DaikyoNishikawa Corporation All rights reserved.

Q4

Q1

Q2

Q3
FY2022

Q4

Q1

Q2

Q3
FY2023P.8

Q4FY2024平均
FY2024average
FY20240

FY2023 Medium-term Management Plan Outcome
Automation
Examples of production technology contributing to sustainable manufacturing
Zero waste by in-process recycling①Crushing and recycling of cut sections in the molding process②Recovery and recycling of machining debris from the assembly process③In-process grinding process

Reuse of materials by in-process recycling equipment

Manufacturing Process

Achieved complete in-process
recycling of waste materials（our company's first）

Cut-over recovery

Quality Control for IoT Utilization①Complete data management of good conditions

Deepening of gas injection method hollow pipe by pursuing good conditions(achieving zero defects)

Gas pipe
Direct personnel：3 persons→

０

In-process response

Prevent defects through predictive maintenance by trend management③Quality assurance through data management
Qualityconditions

Link superior/defective product data

Manufacturing data

Inspection data

Manufacturing
Process

inspection
devicePromotion of people-friendly, high-quality, fully automated operations①Automation through standardization of high-difficulty work・Analyze good conditions for required quality
・Automated standardization of elemental work
・Complete synchronization from molding to packaging©DaikyoNishikawa Corporation All rights reserved.

Recycling equipment

Process quality assurance
through data monitoring

Water pipe
Direct personnel： 4 persons②Trend management of equipment deterioration factors

Drilling waste recovery②Simplification, slimming down and compacting of processes③Zero inspection manpower through numerical data determination of inspection work

P.9

FY2023 Medium-term Management Plan Outcome
Carbon Neutral
Scope１・２

Roadmap for CO2 Emission Reduction
Energy saving
activities
Energy saving
renewal1-24%Energy saving
activities
Energy saving
renewalIntroduction ofrenewable energy

CO2

2021

2013

Promoting company-wide energy saving
steps, technological innovation energy
saving activities, and productivity
improvement activities

EnergysavingrenewalPromoting long-term equipment renewal
plans (energy-efficient equipment)

2-50%
Energy saving
activities
EnergysavingrenewalCO2
In action

Energysavingactivities

CO2

Introduction ofrenewable energy

2030

2050

CN
achievement

Introductionof renewableenergyIntroducing solar power generation,
investigating biofuels, and procuring
renewable energy

FY2022: Created the roadmap and promoted company-wide energy saving steps to accelerate activities.

1

Step 6

Activities to promote energy saving improvement steps
Step 5
Step 4

Minimization during
Minimization during non- processing production
processing production
Step 3

Step 2
Step 1

Power off outside
production hours

Identification of leaks
and countermeasures©DaikyoNishikawa Corporation All rights reserved.

P.10

Minimization during
standby (idling) operation

Pursuit of ideal energy

FY2023 Medium-term Management Plan Outcome
Carbon Neutral
2 Introduction of renewable energy equipment
DNC Group’s solar panel installation planBase

FY2022Honsha Plant
Headquarters

Study

FY2023

FY2024

Installation on roofs
Study

Daiwa Plant

FY2026

Operation startInstallation on slopes

KantoDaikyo Co., Ltd.

FY2025

Operation start

Study

Installation on vacant lots

Study

Operation startInstallation on vacant lots

Tsuruhama Plant

Study

Nakanoseki Plant 2

Study

1. Installing solar panels on the roof of the Honsha Plant
building (scheduled to begin operation in May 2024)

Operation start

2. Installing solar panels on the slopes on the premises ofthe Headquarters building (scheduled to begin operationin February 2025)

Installation of solar
panelsInstallation of solar
panelsEstimated CO2 emissions: -1,070 ton-CO2/year©DaikyoNishikawa Corporation All rights reserved.

Estimated CO2 emissions: -175 ton-CO2/year
P.11

FY2023 Medium-term Management Plan Outcome
Women being active in the workforce
Promoting initiatives to create a comfortable working environment for every employees
Results

Background of Women's Activity Promotion
Our Challenges

TargetLow ratio of women in
managerial and supervisory
positions relative to the ratio of
women in full-time positions

Increase the number of women in
managerial and supervisory positions bycreating a workplace where women canwork and play an active role.

KPI※DNC stand alone

Steady increase in the number of women in managerialand supervisory positions, ahead of the FY2025 target
0.06

女性管理職人数
45 Numberof female managers

40

Number of female managers：3x compared to FY2020
Number of women in supervisory positions： 1.5x compared to FY2020(persons)

Numberof women in supervisory positions
女性監督職人数
Percentage
女性管理・監督職比率

0.05

35

0.04

30

Started a project to expand thewomen's activity promotion system

25
20（April 2017～March 2024）

System10

Activities

5・Unconscious Bias Training
・Various training/roundtable discussions©DaikyoNishikawa Corporation All rights reserved.

28

15

・Accumulated Paid Leave System
・flextime system
・Leave to accompany spouse on transfer ・Communication Sheet Revision
・Job return (rehire)・Health Support Leave
・Family Support Leave
Results of ・internal recruitment system

Training

36

2021
Acquisition of a“kurumin”

0

P.12

12
0

16

0

20

23

24

28

0.03

28
0.02

24

0.01

Accelerated
achievement

0

0

0

2

3

5

6

6

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
target0

Review of the FY2023 Medium-term Management Plan
Although sales targets were achieved, profit indices were not achieved due to pricehikes and strengthened CSR management, etc.
Consolidated
net sales：

Target achieved due to the end of major production fluctuations caused by the new coronavirus and difficulties in procuringparts for semiconductors, etc., and a recovery trend in production volume.

OP ratio：

Target not achieved due to delay in North America's 2 shift, rising prices, and active promotion of ESG-related investments.

ROE：

Target not achieved due to lower net income resulting from lower operating income.

FY2023 Consolidated net sales
Target:

150Billion Yen Result:159Billion Yen

FY2023 Operating profit ratio
Target:9.0％ or more

Result:5.5％

FY2023 ROE
Target:10.0% or more

Result:7.4％

Operating Income Fluctuation Factors
・Unit volume Impact
・Operating loss due to reduced production
・Delay of 2 direct conversion in North America（Million yen）

14,300Operating profit
ratio

・Soaring prices of raw
materials and energy

・Cost improvement activities
・Strengthen CSR management

9％ or more

8,690

Target for FY2023
medium-term
中期経営計画
management
plan（FY2023目標）

FY2023実績
FY2023
result©DaikyoNishikawa Corporation All rights reserved.

P.13

2. Long-term Vision & FY2027 Medium-term Management Plan

©DaikyoNishikawa Corporation All rights reserved.

P.14

Business Environment Surrounding DNC GroupTo identify issues that we recognize from the environment in which we operate,
and to develop a concrete long-term direction for the future.
Social・The SDGs and ESG concepts have become widespread in society,and it is now a matter of course for corporate management to be awareof the need to balance profit generation and the realization of asustainable society.

Automotive Industry
・Changing the way we build cars and the way we think.
・Acceleration of environmental response・circular economy

As a listed company
・Proactive information disclosure and constructive dialogue
・Management Conscious of Cost of Capital and Stock Price・Strengthening Governance

Stakeholder Feedback
・Realization of a sustainable society
・Sustainable growth of the company

Long-term Vision
Vision 2040
・Present the desired image with the corporate philosophy and brand in mind.

Business Portfolio
・To present the direction of the DNC Group's business so that it can respondflexibly to changes in the external environment and continue its business inperpetuity.

Materiality
・Present issues that the DNC Group will address with “special emphasis” torealize its long-term vision and clarify areas of focus.

Issues in the Previous Medium-termManagement Plan
©DaikyoNishikawa Corporation All rights reserved.

P.15

Growth Strategy
Outline of Long-term Vision & Medium-term Management Plan
Long-term vision and new medium-term management plan formulated based on social
issues and remaining issues from the previous medium-term management plan
Corporate Philosophy
Brand Concept: “Making our tomorrow”
Long-term Vision
Vision 2040

Business Portfolio
Materiality

Medium-term Management Plan
Medium-term Management Policy and Targets
Management strategy©DaikyoNishikawa Corporation All rights reserved.

P.16

Long-term Vision
Long-term vision set by DNC Group as “our tomorrow” in FY2040.
Corporate philosophy•••

We strive to be a company which places emphasis on people, society and the earth, in pursuit of the happiness andprosperity of our employees.
We will aim to exceed expectations by taking on challenges to technological development and innovative Monozukuri.
We will establish a company that gains the confidence of our community by thoroughly creating and following ourgeneral business ethics.

Brand Concept“Making our tomorrow”

Vision 2040

An essential company where people with rich personalities
pursue the possibilities of resins and contribute to people,
society, and the earth on a global scale.
-Established a resin circulation cycle and is providing products to new fields.
-Engagement has increased and all employees are proud of the company.
©DaikyoNishikawa Corporation All rights reserved.

P.17

Business Portfolio
Challenging new resin fields with the knowledge and technology we have cultivated,centered on the automotive parts business※FY2040：Image

Automotive Components Portfolio
CockpitFront-end
Automobile Parts Business

FY2040Appeal for weight reduction of
EVs through the use of resin

Power train

New Resin BusinessEconomic value

Economic value

Tailgate

Housing Parts Business

Mold

Total interior coordination

経
済
的
価
値

New Resin Field

Expanded to electricalcomponents

Increase in EV
components

Support Business

Design/Analysis
Staffing

FY2023
Scale ofbusiness

Recent©DaikyoNishikawa Corporation All rights reserved.

Growth potential
成長性Growth potential

P.18

Environmental awareness (materiality) in FY2040
Establish 12 issues to be recognized and weave them into each strategy
to ensure progress is managed.
Materiality
People & Society

・D&I Promotion and Respect for
Human Rights
・Career development
・Branding・Contribution to the community

Manufacturing

Corresponding strategies:

Corresponding Strategy:
Management Base

The earthcustomers, products, manufacturing

Management Bases

・Carbon neutral
・Circular economy

・Improve financial performance・Strengthen risk management
・DX promotion
・Fair and equitable business activities
Corresponding strategy:
All strategies

Corresponding strategies:
customers, products, manufacturing©DaikyoNishikawa Corporation All rights reserved.

・Develop and expand sales of highvalue-added resin products
・Develop and expand sales ofenvironmentally friendly resin products

P.19

Medium-Term Management Planalong with Long-Term Vision
Formulate a medium-term management plan by back casting from the long-term vision

Materiality is incorporated into
the medium-term management
plan to realize Vision 2040, andeach measure is promoted

An essential company where people with rich personalities
pursue the possibilities of resins and contribute to people,
society, and the earth on a global scale.
Our goal for FY2040-Established a resin circulation cycle and is providing products to newfields.
-Engagement has increased and all employees are proud of the company.

１

Stage

Medium-term Management Policy

FY2024-2027
Medium-termManagement Plan

・Create a model for a product that achieves a cyclical cycle of resin.
・Implement marketing with a view to doubling the number of business partners.
・Create a comfortable and pleasant work environment so that each employee can maximize
his or her abilities.

©DaikyoNishikawa Corporation All rights reserved.

P.20

3. Outline of the Medium-term Management Plan for FY2027©DaikyoNishikawa Corporation All rights reserved.

P.21

FY2027 Medium-term Management Plan Basic Policy
Work on measures to resolve issues and realize our long-term vision
based on four management strategies
Medium-term Management Policy・Create a model for a product that achieves a cyclical cycle of resin.
・Implement marketing with a view to doubling the number of business partners.
・Create a comfortable and pleasant work environment so that each employee can maximize his or her abilities.
Management Base Strategy

PersonHealthGovernanceContribution

DNC Value Chain
Customer Strategy
Product Strategy
Manufacturing Strategy

R&D

Sales & Marketing

Engineering

Procurement

QualityDX©DaikyoNishikawa Corporation All rights reserved.

Group
Management
P.22

Finances

Manufacturing

Materiality
Manage progress by linking materiality to the strategiesof the medium-term management plan.
Management Strategies
Category

Materiality
Customer

Product

Manufacturing

●
●
●
●

D&I Promotion and Respect for Human Rights

People&Society

Career development
Branding
Contribution to the community
Carbon neutral●●

Circular economy

●

●

●

●

●

●

The earth●

Develop and expand sales of value-added resin products

Manufacturing
High quality and high efficiency production
Improve financial performance

Management
Bases

Strengthen risk management●

DX promotion
Fair and equitable business activities©DaikyoNishikawa Corporation All rights reserved.

Management
Base

P.23

●

●
●

●
●
●
●

FY2027 Medium-term Management Plan Indicators
Solidify management foundation for sustainable growthin addition to securing stable earnings
Consolidated Sales： Maintain and expand business with existing OEMs while developing new OEMs/Tier 1s/new areas for sustained growth.
Operation Profit：

Continue to strengthen CSR management to contribute to solving social issues and improve profitability

ROE：

Sustainably increase ROE by improving profitability and improve PBRFinancial Targets

Non-financial Targets

FY2027 Consolidated sales

FY2027 Operation Profit Ratio

FY2027 ROE

CO2 Emission

180.0 Billion Yen

7.0％

9.0％

Reduce 45.0％ vs FY2013

Sales
売上高
3,000
2,000
1,000

ROE

OP
ratio
営業利益率

D&I

9.0%

7.4%
5.5%

(Scope 1, 2)

5.6%

7.0%

7.0%

13

Female managers：
1,590

1,800

1,690

3.0%

42

Women in supervisory positions：90％

Male fertility rate：0-1.0%
FY2023

FY2024©DaikyoNishikawa Corporation All rights reserved.

FY2025

FY2026P.24

FY2027

Shareholder Return Policy
Dividend Policy
・Secure internal reserves necessary for business strategies that enhance future corporate value
・Stable and continuous dividend payout ratio of approximately 30% on a consolidated basis and DOE of at least 2.5%.
FY2023 ◼ Commemorative dividend of ¥2 per share in response to shareholders' ongoing support on the occasion of the 10th anniversary of theCompany's listing on the Tokyo Stock Exchange（Annual dividend is 32 yen）
FY2024 ◼ 34 yen per share is planned, taking into consideration R&D for growth, securing funds for capital investment, and the dividend payout
ratio, among other factors.（Interim dividend 17 yen / Year-end dividend 17 yen）

Dividends/ Payout ratio
配当金・配当性向

50411.2%

Dividend
per share (Yen)
1株当たり配当金(円)Commemorative dividend
記念配当

Dividend payout ratio(%)
連結配当性向(%)

DOE

250.0%
200.0%

45

40

43.3%

150.0%

83.9%
39.3%

40.3%

100.0%
50.0%
0.0%

2.9%

35

-50.0%-100.0%

2

30

30
25

30

30

30

30

34

-150.0%-200.0%-250.0%FY2019©DaikyoNishikawa Corporation All rights reserved.

FY2020

FY2021

FY2022P.25

FY2023

FY2024Customer Strategy: Policy

Customer Strategy
１. Marketing for new market development with resin
２. Strengthen the sales function of the entire group©DaikyoNishikawa Corporation All rights reserved.

P.26

Customer Strategy: Strengthen Marketing Function
Developing New Markets
Basic policy
Strengthen marketing to develop
new markets
Increase the number of business partners byapproaching previously untraded automotive
OEMs/Tier 1 manufacturers and obtaining
RFQs

Goal for FY2027

MeasureSales-led examination andrefinement of new areas

Presentation of DNC'sproprietary technology topotential new business

Understanding customer
needs and developing
feedback

DNC development
proposals that matchcustomer needs

Discussions in the DN
Marketing System and useof external information
systems to narrow down
candidate industries

Promote development
presentations utilizing
marketing information and
DNC proprietary
technologies/assets

Identify needs for new areas
through presentations, anddiscuss and consider them inthe DN Marketing System

Win RFIs/RFQs with DNC
development proposals thatmatch customer needs

New OEMs

Major TIER１

Sales activities to Japanese & overseas manufacturers

Sales activities, focusing on EV-related parts

Compared to FY2023：10％ increase

Compared to FY2023：Double

既存OEM
Existing
OEM
新規OEM
New
OEM

Number of trading
OEM取引社数
OEMs

Number of trading
Major TIER1
既存主要Tier1
Existing
Tier1

主要Tier1 取引社数

10%Increase

新規主要Tier1
New
Tier1

DoubleOEM：30→33companies
Tier1：→10companies or more

RFQ：Double
FY2024©DaikyoNishikawa Corporation All rights reserved.

P.27

FY2025

FY2026FY2027

FY2024FY2025

FY2026FY2027Customer Strategy: Development of new areas
Developing New Markets
Basic policy

Strengthen marketing to develop
new markets
Identify a wide range of needs so as to receive
inquiries from non-automotive markets

Measure1.Identify

2.Targeting

3.Action

Sales approaches to
new areas

Opportunities andthreats
Targeting

Development
proposal
Win RFI/RFQ

Research/analysis

Sharing needs

Presentation

4.GoalDevelop2 or more
New Areas

Goal for FY2027
customerinterviews

DN marketing system
Matching 3rd parties

New business area：
2 areas or more

©DaikyoNishikawa Corporation All rights reserved.

Marketing CFT

P.28

Win RFI/RFQCustomer Strategy: Sales by Business Location
Two major segments as growth drivers for business performanceJapan

120000118000116000114000112000110000108000106000104000102000100000
98000
96000
94000
92000
90000
88000
86000
84000
82000
80000
78000
76000
74000
72000
70000
68000
66000
64000
62000
60000
58000
56000
54000
52000
50000

Maintain sales scale of major customers and promote
expansion of other companies' sales

Americas115,989

Strengthening the sales expansion system of othercompanies in cooperation in the U.S./Mexico

50000

105,956

108,03245000

38,20240000

91,147

35000

30000

25000

26,14522,862

20000

15000

14,622

10000

FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027©DaikyoNishikawa Corporation All rights reserved.

FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027

P.29

Product Strategy: Policy

Product Strategy
１. New value creation by resin (automotive/new fields)
２. Providing new value as a system creator©DaikyoNishikawa Corporation All rights reserved.

P.30

Product Strategy: “System Creator”
Value creation by resin and providing value as a “System Creator”
Basic policy
Creating New Value with Resin（Automobile and new market）

MeasureFormulate next-generation product scenarios anddevelop one-of-a-kind products

Formulate next-generation product scenariosand develop one-of-a-kind products

CockpitGoal for FY2027

Front
end

Develop environmentallyfriendly products
Product development using CNF* composite materials
and environmentally friendly materials
Start of mass production using PCR materials*
including ELV*-derived materials
Product area

CO2 emission: 30％less*CNF：Cellulose NanoFiber*ELV：End-of-Life Vehicle*PCR：Post-Consumer Recycled resin©DaikyoNishikawa Corporation All rights reserved.

Providing new value as a
“System Creator”

Power train
New Value ofMobile Experience

Four
Product areas
Tail gate

Module andstand-alone
development

Partial systemdevelopment

Environmental
Responses

・Versatility
・Extensibility

Strengthening technological innovation to realize a recycling spiral

2019

2024

2027

20XX

Build MBR and MBD for highly efficient short-term development process
Transformation to desk-top
verificationtype
development
to support
product
strategy

Process innovation・CAE

Digital Transformation

Create new values

Car model
Body model
Model Computation

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Full-scale model

Comfort(TSV)Product Strategy:
Realization of resin circulation cycle
Development of environmentally friendly products
Basic policy
Product development andtechnological innovation for therealization of the resin
circulation cycle

MeasureMechanism Elucidation

Industry-Government-Academia Collaboration

ELV support andcommercialization

Co-creation activities with OEMs and material
manufacturers

Procurement

Products

Automobiles

発泡成形
Recycled Plastics
Biomass Resins
Waste materials

Scrapping（CNF・Oyster shells, etc.）

Compounding

ELV※ regulation concept
At least 25% of the plastic used in vehicle manufacturing shallbe recycled plastic, 25% of which shall be of ELV origin.

Disassembling

Functional
restoration ofdeteriorated
resin※ELV： End-of-Life Vehicle

Development ofeasy disassembly
structure
Crushing & Shredding©DaikyoNishikawa Corporation All rights reserved.

Elucidation of resin
degradation mechanism

Deteriorationresistant resin

Goal for FY2027
Establish products andtechnologies that comply with ELV
regulations

Manufacturing

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Manufacturing Strategy: Policy

Manufacturing Strategy
１. Realize a quality management system for nextgeneration products
２. Responding to all changes and achieving highly efficientmanufacturing throughout the entire value chain©DaikyoNishikawa Corporation All rights reserved.

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Manufacturing Strategy: Promoting Automation
In-house automation technology for work elements
MeasureBasic policy

To expand automation by making the technology in-house through verification and trials toautomate work elements, and then building automation equipment based on the technology.

Flexible, cost-effective
automated production

Make automation in-house know-how

+3

+6

+8

-Fastener assembly

1111

FY2023

FY2024FY2025

FY2026FY2027-Appearance inspection ofmolded materials-Parts assembly inspection-Tape application-Primer application-Torch finishing…

11-Ultrasonic welding…

11-Clip assemblyCompleted cases

Goal for FY2027
Tightening screws

11cases → 21cases(out of 28cases)（10cases increase compare with FY2023result）©DaikyoNishikawa Corporation All rights reserved.

-Appearance inspection ofpainted materials-Tightening screws

11
ベンチマーク

Make in-house engineeringknow-how of automation work

+10

TBD

Completed

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Fastener assembly

Ultrasonic welding

Parts assembly
inspection

Primer application

Manufacturing Strategy:
Realize non-stop production
Non-stop production by strengthening predictive and self-initiated maintenance
Basic policy

Achieve non-stop production byenhancing equipment
maintenance management for
preventive self-maintenance

Goal for FY2027

MeasureVisualize when to replace parts and engage in predictive maintenance by accumulating
and analyzing data on equipment conditions through the construction of maintenancesystems and the use of IoT.
2024年度FY20242025年度FY2025

2026年度FY20262027年度FY2027

Preparation for systemization
設備情報分析学習DB収集
Information analysis learning
システム化への事前準備
DB collection

Establishment of maintenance保全システム構築
system
分析学習DB収集、保全指示
Analysis learning DB collection

Equipment condition DB
設備状態DBの収集
collection
IOTによる常時状態収集
Constant status monitoring

設備状態DBと分析学習DB
learning DB

Learning
data
学習データ

SafetySystems
保全システムLinkagewith IoT
IoTとの連動AI Maintenance
AI予知保全
Prediction

Cloud Data Management

Unattended real-time monitoring

Timing optimization

Alignment of state DB andAI分析による予知保全
MaintenancePrediction by AI

Equipment register

Equipment standards

Compared to FY2023

Inspection records

Trouble-shooting record

Equipment breakdown time 50％ reduction

MTBF（Mean Time Between Failures） 50％ improve©DaikyoNishikawa Corporation All rights reserved.

Maintenance record

Spare parts control

Unified Management

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Carbon Neutral Initiatives
Create environmentally friendly technologies and accelerate to reduce impact
FY2027 Scope1・2 CO2 emission reduction by 45％（compare with FY2013）
Energy Conservation Step Activities

CO2 Emission Reduction
Roadmap

Air shutoff after milling machine production hours

Promoting energy conservation improvements
through thorough elimination of waste

FY2027: 3.0％ reduction
FY2027-45％ target

Production Technology Innovation
Minimization of energy use throughreuse of waste heat and air conditioning
air and introduction of new technology

100％

FY2027: 10.1％ reduction-25.8％-50％

Renewable Energy Introduction

6.1%

Solar power installation using PPA(onsite and offsite)
FY2013

FY2023

FY2027

FY2030FY2050

FY2027: 6.1％ reduction

0.1%
Installed solar power

FY2020 FY2024 FY2027

CN Accomplishment©DaikyoNishikawa Corporation All rights reserved.

1.4%

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Management Base Strategy: Policy

Management Base Strategy
1. Developing people to make the most of each person's individuality
2. Strengthen efforts to maintain/promote employee health
3. Fair and equitable business activities and strengthened governance4. Coexistence and co-prosperity with local communities
5. Reform business processes using digital technology
6. Strengthen consolidated group management
7. Strengthen financial functions©DaikyoNishikawa Corporation All rights reserved.

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Management Base Strategy: D&I Management
Developing people to make the most of each person's individuality
Basic policy
Creating a workplace where
everyone is respected and canplay an active role
Evolving from women's activities to D&I
management, responding to the diversity that
already exists and creating a workplace where
diversity can thrive

Goal for FY2027※DNC stand-alone

Addressing the diversity that
already exists
・Female managers：6 → 13 persons
・Women in supervisory positions:28 → 42 persons
・Male fertility rate:46.5% → 90%

MeasureCreating a workplace where diverse human resources can work
comfortably through the creation of an environment and systems
from the perspective of women to work and play an active role.

Started D&I project consisting of diverse human resources
Started D&I promotion project
Identification of issues and themes for
improvement in the workplace

Strategic planning for utilizing diverse
human resources

Understanding and penetration of D&I
Education for each level of employees

Psychological safety, acceptance of different values

Engagement Survey Introduction

FY2024FY2025

FY2026Creating a Workplace Where
Diversity Thrives

Environmental improvement andsystem revision

・Improve employee engagement
・A strong organization with a diverse workforce

Elimination of Unconscious Bias

©DaikyoNishikawa Corporation All rights reserved.

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FY2027Creating an organizationin which diverse humanresources can play anactive role
Improve employee
engagement

Management Base Strategy:
Promotion of career development
Developing people to make the most of each person's individuality
Basic policy

MeasureBuilding and utilizing talentmanagement

Identify the right person for the right job from the human resources
database, identify candidates for the next post, and create a mechanism
to develop an education plan that promotes skill improvement based on
employees' career plans.

Share career development expectations andindividual career plans for human resource
development and appropriate placement

Formulate a concept for the establishment of acareer planning mechanism

Appropriate allocation mechanism
begins operation

Formulate a concept for establishing anappropriate allocation mechanism

Goal for FY2027※DNC stand-alone

Building a career development
mechanism

・Alignment of career development expectations withindividual career plans

Talent management system requirements
definition completed

FY2024

Appropriate placement

・Appointment and promotion of the right person to
the next post

Developing Human Resources for
Career Growth

FY2026P.39

FY2027

Talent Management System
Introduction

Talent Management
System Outcome
Assessment

Started operating a career planmechanism

Improved employee
engagement

Career development expectations and individual career plansharing, success stories toward the career plan you are aiming
for, and development into an education plan

・Developing into an educational plan that promotes
capacity building based on career planning©DaikyoNishikawa Corporation All rights reserved.

FY2025

Finding the right person for the right job fromthe database and extracting candidates for the
next post

Management Base Strategy: DX Promotion
Reform business processes through the use of digital technology
Basic policy

Measure-Optimize business processes acrossdepartments to improve productivity,
work style reforms and value creation-Establish a foundation for data-driven
decision making by linking missioncritical systems-Optimize business processes using digital tools-Improve digital skills and promote work style reform-Shift to value-creating areas and improve productivity acrossdepartments

Goal for FY2027
Improved efficiency and productivityof business processes
・Improvement of business processing time…30% or more（compare with FY2023）

Identification of operations and review ofbusiness processes

Progress evaluation and improvement ofbusiness process optimization

DX literacy education, DX practical skills education

DX literacy education, DX practical skills
education
Assessing the effectiveness of theautomation process

Evaluation of data integration between missioncritical systems and formulation of optimization
strategies

FY2024In-house diffusion of digital skills andwork style reform

FY2026Full-scale introduction of digital tools andoptimization of business processes

・Education Completion Rate…100％

DX literacy education, DX practical skills education

Accelerate management judgment
and decision-making processes

Requirements definition and implementation of
automation processes

・Decision-making time reduction rate…10% or more（compare with FY2023）©DaikyoNishikawa Corporation All rights reserved.

FY2025P.40

FY2027
Operational evaluation andreview of improvement
Evaluation of overall
operational efficiency of
DX education and toolutilization
Comprehensive review ofdecision-making processManagement Base Strategy:
Improve financial performance
Establish cash allocation to improve financial performance
Approx. 80.0billion yen

・R&D：Resin recirculation cycle development

GrowthInvestments

・Human capital：Implement a talent management system for career development

15.0Billion Yen

・DX：Building a foundation for rapid, data-driven decision-making
・Carbon neutral：Resin recycle cycle development

Shareholder
Returns

10.0Billion Yen
OperatingCash Flow

80.0Billion Yen

Shareholder
Returns
・Dividend Policy：Stable and continuous dividend payout ratio of approximately 30%
and DOE of 2.5% or moreFinancial
Strength25.0Billion Yen

Financial
Strength

Result: 20.3billion yen
Growth Investments

・Enhancement of group fund management

CapitalInvestment

Shareholder Returns

OperatingCash Flow

・Retained earnings for the future with a view to realizing our long-term vision

30.0Billion Yen

Financial Strength

CapitalInvestment

Capital investment

Source ofFunds

Use ofFunds

FY2023（single year）©DaikyoNishikawa Corporation All rights reserved.

Source ofFunds

GrowthInvestments

・Renewal or enhancement of existing facilities

Use ofFunds

・Investment in development of new car models

FY2024~FY2027

・Tooling investment（accumulated total）

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[Important Information]
This presentation material contains certain statements describing the future plans, strategies, and performance of DaikyoNishikawa
Corporation and its consolidated subsidiaries. These statements are not based on historical or present fact, but rather assumptions andestimates 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 materially from the assumptions and estimates provided on account of the risks, uncertainties, and other factors. The information
contained on this presentation should not be considered as an offer, or solicitation, to deal in any of the investments or funds.

[Contact]
DaikyoNishikawa Corporation
Corporate Planning Department
PR/IR Group
Phone: +81-82-493-5610©DaikyoNishikawa Corporation All rights reserved.

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