Pacific Industrial : Financial Results Briefing for FY2023 2nd Quarter

FY2023 Second Quarter Financial Results Briefing

The 100th period：Apr. 1st, 2023- Sep.30th, 2023

Nov. 6th, 2023

Contents

１．FY2023 Q2 Financial Performance

２．Financial Forecast (FY2023 Full Year)

３. Medium-term initiatives

Cautionary Statement with Respect to Forward-Looking Statements

These materials contain forward-looking statements that reflect our current expectations. These forward-looking statements are not guarantees of future performance. It involves any risk depending on the Japanese or international economic situation, business trends related to our company, fluctuation of exchange rates and other factors. It may cause our actual performance to be materially different from any future results announced.

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1-1 Q2 Consolidated Financial Summary

Record highest were achieved for sales, ordinary and net income due to increase in higher automobile production.

								（100 millions of yen, ％）
	FY2022	FY2023				YoY	rate	Diff. from Forecast
	22/２Ｑ	23/２Ｑ		23/２Ｑ
	Cumulative	Cumulative	Cumulative	Gain&Loss	% Change	Gain&Loss	% Change
	Result	Forecast on 27Jul.		Result
Sales	909	975	Record	1,026		+117	＋12.9	+51	＋5.3
High
Operating Income	26	55	Record	74		+48	＋188.0	+19	＋36.3
High
Operating Income Ratio	2.9%	5.6%			7.3%		+4.4P	－	+1.7P	－
Ordinary Income	55	78	Record	103		+47	＋86.4	+25	＋32.5
High
Ordinary Income Ratio	6.1%	8.0%			10.1%		+4.0P	－	+2.1P	－
Net income attributable to	41	50	Record	75		+33	＋82.3	+25	＋50.6
owners parent
High
Quarterly Net Income margin	4.5%	5.1%			7.3%		+2.8P	－	+2.2P	－
Average exchange rate（U.S. dollars）	¥129.8	¥132.8			¥139.9		¥10.1	－	¥7.1	－
*Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received	steel materials for stamping.	As a result of this,
fiscal 2023 2nd quarter cumulative results includes a 15 billion yen year-on-year decline in net sales. No	impact on income.

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1-2 Analysis of Q2 Cumulative Results: Consolidated Sales

Record high for 2Q due to increase in sales volume more than decrease in sales due to the impact of customer-received steel materials for stamping.

							( 100 millions of yen )
						Exchage
					Exchange	Gain
				Material	Conversion	+3	1,026
				+34
				Price
	customer-received
909	steel materials		+61
for stamping
				Sales
				Volume
	△150	Selling	+172
	Price
			△3

FY2022		FY2023
Q2 Cumultive	Sales ＋11.7 billion yen	Q2 Cumultive
Results		Results

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( 100 millions of yen )

1-3 Analysis of Q2 Cumulative Results: Operating Income

Costs increased due to sales volume up. Record-high profit for Q2 due to increased sales volume and cost improvements.

						Depreciation	Exchange	74
					Cost	(excl.dies)	Gain
					+3
					Improvement	+4
					+14
					Sales
	Material				Volume
26
Price	Labor			+51
	△10	Cost
			Selling	Expenses
		△8	Price
		△2
			△3
FY2022								FY2023
Q2 Cumultive		Operating Income	+4.8 billion yen			Q2 Cumultive
Results								Results

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（100 millions of yen,％）

1-4 Q2 Cumulative Results by Business Segments

Sales and profits increased in the stamping and plastic molding business due to increased sales volume. Sales of valves increased due to exchange conversion, but profits decreased due to increased costs due to high material prices.

	Sales		Operating Income
22/Q2		YoY Rate	22/Q2		YoY Rate
23/Q2	23/Q2
Result	Result	Gain&Loss %Change	Result	Result	Gain&Loss %Change

Stamping &	638	741		+103	+16.2	1	55	+53	-
Plastic Molding
(The Impact of increased		*
customer-received materials for			(△150)
stamping)
Operating Income Ratio							0.3%	7.5%		+7.2P
Valves	269	284		+14	+5.3	23	19		△4	△18.3
Operating Income Ratio							8.8%	6.9%		△1.9P

*Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel

materials for stamping. No impact on income.	6/36

1-5 Q2 Cumulative Results by Region

Sales and profits increased due to increased sales volume in Japan,

Europe, America, and Asia. （100 millions of yen,％）

		Sales
	22/Q2	23/Q2	YoY Rate	22/Q2
	Result	Result	Gain&Loss	%Change	Result
Japan	338	341	+3	+0.9	15
(The Impact of increased		※
	(△150)
customer-received materials for
stamping)
Operating Income Ratio					4.6%
Europe & America	379	473	+94	+24.9	△3
Operating Income Ratio					△0.9%
Asia	191	211	+19	+10.4	11
Operating Income Ratio					6.0%

Operating Income
	YoY Rate
23/Q2
Result	Gain&Loss	%Change
38	+22	+145.1

11.2%	+6.6P
15	+18	-
3.2%	+4.1P
14	+2	+22.6
6.7%	+0.7P

Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of customer-received steel materials for stamping. No impact on income.

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１．FY2023 Q2 Financial Performance

２．Financial Forecast (FY2023 Full Year)

３. Medium-term initiatives

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2-1 Full Year Financial Forecast

Revised the forecast upward to reflect the 2Q results and latest information, expecting record highs for both sales and profits.

											（ 100 millions of yen, ％）
			FY2022					YonY rate	Diff. from 27th Jul.
				FY2023
			Full Year		Full Year			Full Year	Full Year
			Results		Forecast on	Latest		Gain&Loss	%Change	Gain&Loss	%Change
				27th Jul.	Forecast
	Sales		1,912		1,900		1,980		*3	+67	3.5%	+80		4.2%
	Operating Income		92		105		120			+27	29.1%	+15		14.3%
	Operating Income Ratio		4.9%		5.5%		6.1%		+1.2P	－	+0.6P		－
	Ordinary Income		132		140		150			+17	13.6%	+10		7.1%
	Current Net Income *1		93		95		105			+11	12.9%	+10		10.5%
	ＲＯＥ		7.0%		6.6%		7.1%		+0.1P	－	+0.5P		－
ＲＯＡ(Operating income basis）		3.7%		3.9%		4.5%		+0.8P	－	+0.6P		－
	Net Assets per Share		¥2,309		¥2,590		¥2,712			¥403	17.5%	¥122		4.7%
	Average exchange rate (US dollars)		¥134.9		¥131.4	*2 ¥140.0			¥5.1	－	¥8.6		－
*1	Current net income is the current	net income attributable to the parent company shareholders.
*2	Reconsidered exchange rate assumptions from the third quarter onwards. The current forecast has been revised to 140 yen to the dollar,
	from the previous announced price of 130 yen to the dollar on July 27.
*3	Sales decrease since FY2022 Q4 due to expansion of offsetting range of sales and its cost; the impact of steel material costs

procured from customers. As a result of this, fiscal 2023 includes a 24.7 billion yen year-on-year decline in net sales. No impact on income.

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2-2 Analysis of FY2023 Forecasts: Consolidated Sales

The decrease in sales due to the impact of customer-received steel materials for stamping will be offset by the increase in sales volume, which is expected to reach a record high.

Exchange Exchange gain

（ 100 millions of yen）

		Material	Conversion	+3	1,980
1,912		Price	+39
Customer-received		+75
steel materials	Sales
for stamping
Volume
△247
Selling	+207
Price
△10
FY2022	Sales ＋6.7	Billion yen		FY2023
	Forecast

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