ニチアス（5393） – Financial Results Summary FY2021

All forecasts and plan that are not historical facts in this document are future business result related forecast. These are showed by based on information and data currently available to the company. Various uncertainfactors could cause actual results to differ.Copyright ©2022 NICHIAS Corporation, All Rights Reserved.Copyright ©2022 NICHIAS Corporation, All Rights Reserved.(Unit：billion JPY)Attributable to ownersof parentCopyright ©2022 NICHIAS Corporation, All Rights Reserved.3(Unit：billion JPY)12.6%10.0%10.5%13.8%17.1%16.8%14.5%21.1%22.0%5.0%9.1%9.0%0.8%1.4%0.4%10.0%12.1%12.1%Copyright ©2022 NICHIAS Corporation, All Rights Reserved.4Copyright ©2022 NICHIAS Corporation, All Rights Reserved.5(Unit：billion JPY)……(Billions of yen)(Billions of yen , %)(%)(Billions of yen)…………Total forfive-year periodTotal forsix-year period(FY2021：114)(Extended for one year)Copyright ©2022 NICHIAS Corporation, All Rights Reserved.6Copyright ©2022 NICHIAS Corporation, All Rights Reserved.7Copyright ©2022 NICHIAS Corporation, All Rights Reserved.Copyright ©2022 NICHIAS Corporation, All Rights Reserved.9(Unit：billion JPY)attributable to ownersof parentCopyright ©2022 NICHIAS Corporation, All Rights Reserved.10(Unit：billion JPY)9.2％10.8%12.6%10.5%10.8％16.0％13.2%13.8%16.8%16.3％16.9％12.7%14.5%22.0%18.7％8.7％6.8%5.0%9.0%9.3％2.8％4.7%0.8%0.4%1.0％10.5％9.8%10.0%12.1%11.8％Copyright ©2022 NICHIAS Corporation, All Rights Reserved.11Copyright ©2022 NICHIAS Corporation, All Rights Reserved.(Macro)Political factorsSocial factorsIntensifying conflict between different political systems (Democracies vs. non-democracies)New trade frameworks (TPP, RCEP, FTA)International taxation (environmental tax, BEPS, higher corporate taxes) Changes in labor resources(aging population and lack of workers in Japan, higher labor costs overseas) Changes in work styles(Work style, work-life balance)Diversity and society based on mutual assistance…SDGsEconomic factorsTechnical factorsSlower pace of economic growth(from focus on growth to focus on sustainability…ESG)Higher energy costs due to decrease in fossil fuels Lack of raw materials and spike in prices, higher distribution costsExpansion of e-commerceSpread and expansion of digital technology(IT, energy conservation, data linking and use)Faster shift from internal combustion engines to electric Energy tradition (hydrogen, ammonia)EnvironmentalfactorsGlobal warming = Increase in natural disasters; aberrant meteorological phenomena, rising sea levels, drought, increasingly serious natural disasters(faster pace of shift to carbon neutral)Increasingly severe environmental contamination: atmosphere, water quality, soil(Spread of restrictions on waste and chemical materials)Copyright ©2022 NICHIAS Corporation, All Rights Reserved.13Changes in makeup of power sources (Decrease in fossil fuels)Faster pace of initiatives addressing carbon neutrality in the plant field(Growing demand for energy conservation, start of demonstrations of hydrogen, ammonia and CO2 collection technology)Implementation of revised labor standards (from 2024)Major manufacturers and customers in Japan speed up efforts to go carbon neutralChina’s environmental regulations remain in place (with a further spread to Southeast Asia and emerging economies) SDG association of products and technology will be considered moreFurther investments in data centers, and faster pace of digital shift in society(Logic for broad range of generations and increase in memory demand)Technological advancements in wake of miniaturizationReinforcement of environmental restrictions (decrease in CO2 emissions, 3R, etc.)Spread and popularization of next-generation cars primarily in developed countries (regions)(at the same time, in the near term, demand for internal combustion engines is expected primarily in emerging economies) Demands for technology that lowers carbon at the parts and materials level will rise furtherHousing starts are on the decline as Japan’s population fallsThe spread of the e-commerce market will reduce stores but sustain demand for warehouses Requests for environment-friendly products will rise (low carbon, recycle)Copyright ©2022 NICHIAS Corporation, All Rights Reserved.14Insulate・protectWide-rangingNetworks withboth customersand basesSpeedExpand bycombining severalbusinessesNichias’ ownTop sharin niche marketsEfficiencyProvide productsand constructionessential to marketsTrusting, long-termrelationships withbusiness partnersCopyright ©2022 NICHIAS Corporation, All Rights Reserved.15Government and Company: Achieve carbon neutralityWorld: SDG goals to be achieved by FY2030Government: 46% decrease in CO2 emissions ※1Company: 30% decrease in CO2 emissions ※2130th anniversary of founding150th anniversary of foundingHelp to solve environmentaland social issuesPresent : New Medium-term Management Plan(Fiscal 2022-Fiscal 2026)※1: Government’s emission reduction goals = compared to fiscal 2013 ※2: Company’s own emission reduction goal = compared to fiscal 2019Copyright ©2022 NICHIAS Corporation, All Rights Reserved.16Copyright ©2022 NICHIAS Corporation, All Rights Reserved.Copyright ©2022 NICHIAS Corporation, All Rights Reserved.World: SDG goals to be achieved by FY2030Government: Reduce CO2 emissions by 46%Company: Reduce CO2 emissions by 30%Previous Medium-term Management PlanNew Medium-term Management Plan130thanniversary of foundingOperations anticipating FY2030 (fiscal year ending in March 2031)FY2020FY2021FY2022FY2023FY2024FY2025FY2026FY2030Copyright ©2022 NICHIAS Corporation, All Rights Reserved.19FY2026 fiscal period, the final year, coincides with 130th anniversary of foundingWith the rapid pace of change in the external environment, building structures that can adapt to the changes will serve as a bridge to the future. We will mobilize our strengths and build a new era.Copyright ©2022 NICHIAS Corporation, All Rights Reserved.20Only when we can realize a work environment in which employees can play an active role, can we hope for improved business performance and a sustainable future.Copyright ©2022 NICHIAS Corporation, All Rights Reserved.21Operation efficiencyHealth manage-mentGrowth investmentRisk hedgesDigital promotionStrengthening manufacturingWork-style reformCollaboration among divisionsNKK promotionHR developmentPromoting decarbonizationStrengthening sales powerStrength-ening development powerRevenue improve-mentsIssues cutting across the companyare linked to the leaves, branches, and trunkQualityComplianceSafetyCopyright ©2022 NICHIAS Corporation, All Rights Reserved.22Mechanisms for the happiness of our employees(happiness)and the families that support them「A bright and friendly company」(ingenuity)Shikumi created with ingenuity across divisionsto resolve issues , without being satisfiedwith current conditions「Forward-looking thinking and forward-looking organization」(future)Mechanisms aimed at achieving sustainablegrowth while adapting to social andenvironmental changes「Creating a bright future」Copyright ©2022 NICHIAS Corporation, All Rights Reserved.23Copyright ©2022 NICHIAS Corporation, All Rights Reserved.24Nichias happiness value indexCurrently being set (NGI)【Tree-ring management】Sustainable growthImprove profitability(raise ability to generate earnings)Select business and focus resourcesEfficient managementEnvironmental responseStrengthening foundationDeepen business modelFocus on agility and profitsBusiness strategy focused on portfolio Improved work efficiency and productivity Efficient distribution of resources Use and promotionof digital technology Optimization of investmentsReduction in human resourcesPromote carbon neutralityReduce environmental loadInternalReduce own emissionsExternalCreate and expand business opportunitiesEco-friendly product developmentSafety as top priorityImproved qualitySafety, security, stabilityExpand system based on 3SsBottom-upOperating profit marginof 15% or moreCapital investment60 bn yenover five-year periodTotal working timeRate of compliancewith target 100%※ Future target will be considered separately[Internal] CO2 emissionsreduction -30%(compared to 2019)[External] Coming soonSerious claims: ZeroRate of work accidents:(Japan) Less than 0.5(Overseas) Less than 1.2(NPI)(NPI)(NPI)(NPI)(NPI)※ NGI ： NICHIAS「KGI」 ※ NPI ： NICHIAS「KPI」Copyright ©2022 NICHIAS Corporation, All Rights Reserved.25Such as semiconductor and electronic partsCorporate mission that makes insulation and protection technologies its mainstay for daily lifeSupporting people’s lives in societyCopyright ©2022 NICHIAS Corporation, All Rights Reserved.26●●●●●●●●●●●Capture energy conservation demand, study, and plan next-generation energy and infrastructure projects Improve profitability through salesand construction synergiesExpand priority segments and select andfocus resources on businesses based on profitabilityof each productBuild optimal production and supply systemsBuild close relationships with important clientsBuild a production system that anticipatesmarket conditionsNew product development for next-generation vehiclesand product specification verification and approvalImprove earnings for existing business and productsImprove earnings and overhaul the business structureDevelop products and manufacturing methodsthat are eco-friendly※ Categories of Focus Areas … ●：Cutting-edge area ●：Environmental areaCopyright ©2022 NICHIAS Corporation, All Rights Reserved.27●：Foundation for daily lifeFigures for fiscal period released externally….(Billions of yen)(Billions of yen)(%)PeriodLast year of previous medium-term planStage 1(First 3 years)Stage 2(Last 2 years)……(Billions of yen)Of which, 10bn yen in environment-related investmentand 10bn yen in investments to boost efficiency and conserve energyCopyright ©2022 NICHIAS Corporation, All Rights Reserved.28Figures for fiscal period released externallyPeriodLast year of previous medium-term planStage 1(First 3 years)Stage 2(Last 2 years)(%)(%)(Billions of yen)………(ROIC for each business will be disclosed in the second stage)Copyright ©2022 NICHIAS Corporation, All Rights Reserved.29PeriodLast year of previous medium-term planStage 1(First 3 years)Stage 2(Last 2 years)※(10,000t)Industrial waste(1,000t)Reductions incustomers’ CO2emissions(10,000t)…….(coming soon)※ 18.2 million t (target value) in 2030 … 30% reduction in 2019Copyright ©2022 NICHIAS Corporation, All Rights Reserved.30Figures for fiscal period released externallyPeriodLast year of previous medium-term planStage 1(First 3 years)Stage 2(Last 2 years)(months)(Billions of yen)(%)…A level at which the company will not immediatelyrun short of working capital, even in a financial crisis…..Copyright ©2022 NICHIAS Corporation, All Rights Reserved.3114014120121001080860640420200：Depreciation(Unit：billion JPY)6.36.56.67.05.84.74.64.83.84.0：Energy ＆ Industrial plants：Industrial products：Advanced products：Auto parts：Building materials：OthersCopyright ©2022 NICHIAS Corporation, All Rights Reserved.322.0bnyen2.0bnyen(estimate)(forecast)868876 78 1.5bnyen68 60 Dividends (yen/annually)52 Share buybacks42 24 26 34 30 20 12 2009201020112012201320142015201620172018201920202021Newmedium-term planCopyright ©2022 NICHIAS Corporation, All Rights Reserved.33stable stable stablestablestablepositivestablestablestable stablepositivestablepositivestablestablestablenegative20062007200820092010201120122013201420152016201720182019202020212022※ Ratings by Japan Credit Rating Agency (JCR)Copyright ©2022 NICHIAS Corporation, All Rights Reserved.34【Environment】【Society】【Governance】Health and WellnessCorporation 2022 is accreditedWe plan to release the Integrated Report 2022 from this fiscal year. Copyright ©2022 NICHIAS Corporation, All Rights Reserved.35IndonesiaMalaysiaThailandVietnamSingaporeShikumicreationNKKCollaborationMaking NKK a part of Nichias’ own culturewhile changing and gaining motivationMexicoCzechIndiaChinaImprovement promotes people’s growth and creates a greater sense of openness and belonging.Copyright ©2022 NICHIAS Corporation, All Rights Reserved.36Copyright ©2022 NICHIAS Corporation, All Rights Reserved.37Copyright ©2022 NICHIAS Corporation, All Rights Reserved.