UACJ : Supplementary Materials for FY2023 Q2 Financial Results

Results Briefing for the Second Three Months of Fiscal 2023 (Q2 FY2023*)

*Throughout this document, FY2023 refers to the fiscal year ending March 31, 2024.

November 9, 2023

UACJ Corporation

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Key Points of Today's Announcements

In a continuation of Q1, business profit*1 in Q2 also came in above forecasts

Based on progress versus forecasts in the first half, we have revised up the full-yearbusiness profit forecast

1

• 1H overview - Business profit: ¥21.0 billion (profit up year on year)
• Japan: In addition to the effects of introducing a surcharge system to reflect soaring energy/

additive metal prices in product prices, profit increased due to our ability to secure profits even in challenging business environments (effects of structural reforms)

• Overseas: Trend of rising profits at TAA*2 continued, and the trend turned positive at UWH*3, where profits grew

2

• Full-yearforecast - Business profit: ¥38.0 billion (upward revision)
• Despite the business environment being more challenging than expected, as a result of progress in actual profit in the first half and of further measures implemented, we have revised up the full-yearbusiness profit forecast from ¥36.0 billion to ¥38.0 billion
• In the expectation of securing steady increases in business profit, the interim dividend will be 45 yen, with an increase in the annual dividend to 90 yen

*1	Business profit: The end result of sustainable business activities. Obtained by deducting from operating profit the impact of metal price lag,
	and other material profit or loss items that are temporary or extraordinary in nature	1
*2	TAA: Tri-Arrows Aluminum Inc.
© UACJ Corporation. All rights reserved. *3 UWH: UACJ Automotive Whitehall Industries, Inc.

Contents

1. Results for 1H FY2023

2. Forecast for FY2023

3. Capital Efficiency Management Initiatives Aimed at Enhancing Corporate Value

4. Reference Data

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© UACJ Corporation. All rights reserved.

1. Results for 1H FY2023

© UACJ Corporation. All rights reserved.

1. Results for 1H FY2023

Overview of Results for 1H FY2023

Business profit: 21.0 billion yen (YoY: +¥7.8 billion)

Operating profit: ¥12.9 billion (YoY: ¥(3.2) billion）

Sales volume: 577,000 tons (YoY*1: -111,000 tons)

• Can stock: Sales at UATH (Thailand)*2 and TAA (U.S.) declined due to the prolonging impact of excess inventories of can stock in North America
• Automotive-related:Continued sales improvement following recovery in production
• Thick plates: Increases in market inventory of thick plates for semiconductor production equipment have caused sales volumes to decline

Business profit: YoY: +¥7.8 billion

Positive factors

• Improved profitability for domestic businesses

(Passing-on of sharp increases in energy, additive metal, and other prices, etc.)

• TAA recorded increase of profits

(Improvements in product mix and manufacturing costs, etc.)

Negative factors

• UATH profitability deteriorating due to temporary slowing of demand for can stock in North America and Southeast Asia

Increase in interim dividend

• Have announced increase in interim dividend per share to 45 yen, which will combine with the year-end dividend of 45 yen to yield 90 yen
• No change to the policy of targeting consolidated dividend payout ratio of 20-30%

*1 Actual figures have been restated following change in the accounting period. *2 UATH: UACJ (Thailand) Co., Ltd.

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1. Results for 1H FY2023

Definition of "Business Profit"

"Business profit" is the actual profit generated by the Company, and is derived

by deducting the impact of metal price lag, etc. from operating profit

(Billions of yen)

Business profit

(2)－(1)

13.2

8.1

21.0

17.0

1H FY2022

2H FY2022

1H FY2023

2H FY2023

1. Metal price lag, etc.
2. Operating profit

2.9
(12.9)	(2.9)
	(8.1)

1H FY2022	2H FY2022	1H FY2023	2H FY2023
16.1		12.9	14.1
	(4.8)
1H FY2022	2H FY2022	1H FY2023	2H FY2023

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1. Results for 1H FY2023

Results for 1H FY2023

			(Billions of yen)
	1H FY2022*1	1H FY2023	Change
	(A)	(B)	(B)－(A)
Revenue	501.1	434.9	(66.2)
Business profit	13.2	21.0	7.8
Metal price lag	2.9	(8.1)	(11.0)
Operating profit	16.1	12.9	(3.2)
Profit (loss) attributable	9.4	4.5	(4.9)
to owners of parent
Net profit (loss) per share	15.8	21.1	5.3
based on business profit
(yen/share)
Adjusted EBITDA*2	30.4	39.1	8.7

*1	IFRS figures for 1H FY2022 results are rough estimates, and may change depending on the results of quarterly reviews going forward. Accounting periods of some group
	companies, including UATH, have been changed from December to March year-end to coincide with the adoption of International Financial Reporting Standards (IFRS).	6
*2	Adjusted EBITDA: EBITDA － Metal price lag

© UACJ Corporation. All rights reserved.

1. Results for 1H FY2023

Revenue and Operating Profit by Segment

							(Billions of yen)
	1H FY2022*	1H FY2023	Change
		(A)		(B)	(B)－(A)
	Revenue	Operating	Revenue	Operating	Revenue	Operating
	profit	profit		profit
Flat-rolled	444.3	17.8	374.3	16.6	(70.0)		(1.2)
products
Precision-
machined	102.4	1.2	103.9	2.1	1.6		0.9
components and
related business
(Adjustment)	(45.5)	(2.9)	(43.2)	(5.8)	2.3		(2.9)

Total

501.1

16.1

434.9

12.9

(66.2)

(3.2)

* IFRS figures for FY2022 results are rough estimates, and may change depending on the results of quarterly reviews going forward.

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1. Results for 1H FY2023

Sales Volume, Flat-rolled Products

					(Thousands of tons)
	1H FY2022*1		1H FY2023		Change
	(A)		(B)		(B)－(A)
Can stock*2	453	385	(68)
Foil		24		22	(1)
IT		5		3	(2)
Automotive materials		59		69	10
Thick plates		29		16	(13)
Other general-purpose	119		83	(36)
materials
Total	688	577	(111)
For Japanese market	244	For Japanese market	233	For Japanese market (10)
	For overseas market	445	For overseas market	344	For overseas market (100)

	*1	Actual figures have been restated following change in the accounting period.	8
© UACJ Corporation. All rights reserved.	*2	Sales volume after eliminating internal transactions

1. Results for 1H FY2023

Analysis of Business Profit (1H FY2022 → 1H FY2023)

Business profit: ¥13.2 billion (1H FY2022) → ¥21.0 billion (1H FY2023)

(Metal price lag: ¥2.9 billion (1H FY2022) → ¥(8.1) billion (1H FY2023) YoY: ¥(11.0) billion)

(Billions of yen)

Business profit

+7.8

	Metal						+0.8	+3.5
	price lag				+0.8	+0.7
	2.9		(1.3)	+3.3
	Business		UATH	TAA	UWH	Differencesrelatedto	Utilizationdifferences	Impact ofenergyand additivemetalprices
1H FY2022* Result
16.1	profit
	13.2	13.2
Operating	Breakdown	1H FY2022
profit		business profit
						sales

21.0

1H FY2023

business profit

Business

profit

21.0

12.9

Metal

price lag

(8.1)

Breakdown Operating profit

1H FY2023 Result

* IFRS figures for 1H FY2022 results are rough estimates, and may change depending on the results of quarterly reviews going forward.

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