NOK : Financial Results for the Fiscal Year Ended March 31, 202

NOK CORPORATION

Prime Market/TSE 7240

Financial Results for FY 2022

May 10, 2023

Copyright © NOK CORPORATION All Rights Reserved.

Contents of Explanation

1 | Overview of Consolidated Results/Executive Summary for FY 2022

2 | Dividends

3 | NOK Group Medium-Term Management Plan (2023-2025)

4 | Financial Results by Segment for FY 2022

5 | NOK Group Medium-Term Management Plan (2023-2025) By Segment/Capital Policy

6 | Business Overview by Industry/Region

7 | Reference Material

2

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1

Overview of Consolidated Results

Executive Summary

for FY 2022

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Group

Companies

91

companies

1

Outline of NOK Group

Overseas

Production Sites

28

sites

Employees

37,913

employees

Production

Volume

60

million items

29

tons

Per day

*Target: consolidated subsidiaries *As of March 31, 2023

1 | Overview of Consolidated Results/Executive Summary for FY 2022

FY 2022	Consolidated results

Executive Summary 1/2

Remarks

 Year-on-Year

Increased sales, decreased profits

Net sales

Operating

income

710.0

15.4

billion yen YoY

 Compared to Revival Plan

Achieved sales, did not reach profits

4.0％

	Important Points
billion yen YoY		Earnings increased due to exchange rate
(50.9)％
・Consolidated	fluctuations and pass-through to sales prices
		Sales decline excluding those factors

Ordinary

income

Net income

26.6

13.3

billion yen	YoY	・Seal business
	(42.5)％
	YoY	・Electronic product
billion yen	business
	(48.4)％
		・Other businesses

Impact of soaring prices for raw materials and energy

Impact of semiconductor shortage

Impact of lockdown in China

Decline in demand for special lubricants Recovery in demand for products for office equipment

5

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1 | Overview of Consolidated Results/Executive Summary for FY 2022

Executive Summary 2/2

Business Trends

FY 2022

Seal business

• Sales declined when excluding the impact of exchange rate fluctuations and pass-through to sales prices as the result of soaring prices for materials and energy
• For automobiles:
  Impact of lockdown in China and supply shortage for semiconductors and other components
• For general industrial machinery: Impact of lockdown in China mainly affected construction machinery
  Strong domestic demand for machine tools, etc.
• Operating income decreased due to the impact of soaring prices for raw materials and energy prices that exceeded the pass- through to sales prices

FY 2022

Electronic Product business

• Sales decreased when excluding the impact of exchange rate fluctuations
• For automobiles:
  Demand increased despite the impact of lockdown in China and supply shortage for semiconductors and other components
• For smartphones:
  Decrease in demand due to impact of lockdown in China
• For hard disk drives:
  Decrease in demand due to inventory adjustment
• Operating loss decreased due to personnel expense containment and exchange rate fluctuations

FY 2022

Other businesses

• Special lubricants:
  Decrease in demand caused by reduced production of automobiles
• Products for office equipment:
  Sales increased due to demand recovery and the impact of exchange rate fluctuations

6

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1 | Overview of Consolidated Results/Executive Summary for FY 2022

(¥ billion)

Consolidated net sales

	682.5		710.0
624.0		640.0
Target	Actual	Target	Actual
FY 2021	FY 2022

Revival Two-Year Plan｜

Targets/Actual

Review of Revival Two-Year Plan

(¥ billion)

Consolidated operating income/margin

3.6%	4.6%	5.2%
		2.2%
	31.3	33.0
22.5
			15.4
Target	Actual	Target	Actual
FY 2021	FY 2022

Revival Two-Year Plan｜

Targets/Actual

7

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2

Dividends

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2 | Dividends	Dividends
	Dividends track record
FY 2021	■ Term-end■ Interim ■ Commemorative dividend

Annual dividend	Payout ratio
							(yen)
60 yen*	40.2%
						75	75
*Ordinary dividend 50 yen + commemorative dividend 10 yen
FY 2022					60
Annual dividend	Payout ratio	50					37.5
				10
75 yen	96.7%					50
	37.5
		25			25
FY 2023		12.5	25
Annual dividend	Payout ratio			12.5			37.5
(planned)
75 yen*	70.1%	25	25		25	25
		12.5
*From FY 2023 to FY 2025, we set a minimum DOE of 2.5% and a minimum total	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
dividend of 37.5 billion yen.
						(planned)
		9				Copyright © NOK CORPORATION All Rights Reserved.

3

NOK Group Medium-Term

Management Plan

(2023－2025)

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