consolidated financial results ended march 31, 2021

DaikyoNishikawa Corporation

2014年8月

Consolidated Financial Results

Ended March 31, 2021

June, 2021

1. Financial Results

2. Financial Forecast for FY 2021【Updated】 Page 11

3. Operation of the new US plant Page 16

4. Strengthening of R&D capabilities Page 21

5. Sustainability Initiative Page 26

6. Efforts for Next Generation Page 31

Product Development

Table of Contents

©DaikyoNishikawa Corporation All rights reserved. P.1


1. Financial Results

P.3©DaikyoNishikawa Corporation All rights reserved.

Sales decreased year on year due to declined production of major

customers in the first quarter mainly because of COVID-19.

Profits decreased due to declined production/sales, although there

were cost reductions and the increase in sales in Mexico.

Period of the medium-term business plan formulated in FY2019 has

been extended by one year to FY2023 in response to changes in

the business environment, and the strategy and target management

indicators have been reviewed.

Highlights

Sales decreased due to declined production of major customers

due to spread of COVID-19 infection.

Profit also decreased due to declined production and sales.


Consolidated Profit and Loss Statement

Financial Results

Ended

Mar.31, 2020

Financial Results

Ended

Mar.31, 2021

Changes

(Y on Y)Changes (%)

Net Sales 182,219 150,234 -31,984 -17.6%

Operating Income 8,995 4,456 -4,539 -50.5%

Ordinary Income 9,500 5,386 -4,113 -43.3%

Net Income

Attributable to

Owners of Parent4,907 2,536 -2,371 -48.3%

Operating Margin 4.9% 3.0% -1.9Pts －

Net Income per

Share69.27Yen 35.75Yen -33.52Yen －

(Millions of yen)

FY2020

Result

FY 2020

Forecast(As of Nov.5, 2020)

ChangesFY 2020

Forecast(As of Apr.8, 2021)

Changes

Net Sales 150,234 150,000 0.2% 150,000 0.2%

Operating Income 4,456 3,300 35.0% 4,200 6.1%

Ordinary Income 5,386 3,600 49.6% 5,100 5.6%

Net Income

Attributable to Owners

of Parent2,536 1,600 58.5% 2,400 5.7%

Operating Margin 3.0% 2.2% － 2.8% －

Net Income per

Share35.75Yen 22.55Yen － 33.83Yen －

FY 2020 Result in comparison with the Forecast

Results exceeded the forecast due to minimization of fire damage, group-

wide fixed cost reduction, reduction of market quality response costs, etc.


(Millions of yen, %)

©DaikyoNishikawa Corporation All rights reserved.

182,219

150,234

-29,681 -600 -634 -1,067

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

18.3

期売上高

製品売上

要具売上

その他売上

為替影響

19.3

期売上高

Reasons for Increase or Decrease in

Consolidated Sales

(Millions of yen)

・Impact of declining production

for major customers

P.6

Operating income increase or decrease factor


8,995

4,456

-8,643

2,026

1,440

483△255

408

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

(Millions of yen)

・Impact of declining production

P.7

Outline of segment business performance


Segment Outline of business performance

Japan

SALES：Decreased due to declined production of major customers

because of the impact of COVID-19

PROFIT：Decreased due to the impact of decrease in sales and the

impact of fires at affiliated companies

China/Korea SALES：Decreased due to declined sales to Japan

PROFIT：Decreased due to the impact of declined sales

ASEAN

SALES：Decreased due to declined production of major customers

due to the impact of COVID-19

PROFIT：Although there was cost reduction effect such as process

improvement at the Thailand subsidiary, profit decreased due

to the impact of declined production

Americas

SALES：Increased due to production gain of major customers in

Mexico

PROFIT：Although there was preparation cost of the new US plant,

profit increased due to favorable sales in Mexico


Sales by Region［Net sales to outside clients］

Financial

Results Ended

Mar. 31, 2020

Financial

Results Ended

Mar. 31, 2021

Changes

(Y on Y)

Changes

(%)

Japan(component ratio)

145,491

(79.8)

113,774

(75.7)

-31,716

（-4.1Pts）-21.8%

China/Korea 5,975 5,380 -595 -10.0%

ASEAN 13,334 8,221 -5,113 -38.3%

Americas 17,417 22,857 5,440 31.2%

Sub total(component ratio)

36,728

(20.2)

36,460

(24.3)

-268

（4.1Pts）-0.7%

Total 182,219 150,234 -31,984 -17.6%

Domestic

Overseas

(Millions of yen)

Sales increased due to increased production of major customers in Americas,

but in other segments, sales decreased due to the impact of COVID-19


Operating Income by Region

Financial

Results Ended

Mar. 31, 2020

Financial

Results Ended

Mar. 31, 2021

Changes

(Y on Y)

Changes

(%)

Japan(component ratio)

7,745

(85.6)

2,176

(50.1)

-5,569

(-35.5Pts)-71.9%

China/Korea 422 385 -37 -8.8%

ASEAN 1,393 397 -995 -71.4%

Americas -515 1,382 1,898 －

Sub total(component ratio)

1,299

(14.4)

2,165

(49.9)

866

(35.5Pts)66.7%

Total 9,044 4,341 -4,702 -52.0%

(Millions of yen)

Domestic

Overseas

With the exception of Americas segments, where sales increased due to the

production growth of major customers, profit decreased due to decreased

production mainly because of COVID-19


2. Financial Forecast for Fiscal 2021【Updated on Jun 7th, 2021】


【Efforts for FY2021】■ Promote company-wide cost improvement to carry out the medium-

term business strategies.

■ The preparation costs of the new US plant are under control as

expected on our business plan, and we are making good progress

toward a smooth start-up by the end of 2021.

【Financial Forecast for FY 2021】■ Cost factor: approximately 4.9 billion yen (depreciation, labor costs,

development costs, etc.) will be needed to prepare for US plant

operation.

■ There are concerns about production decline in the first half FY2021

due to the impact of COVID-19 and semiconductor shortages, while

a recovery trend will be seen in the later half.

Financial Forecast for FY 2021

P.13

FY2020

Result

FY2021

Forecast

Changes

(Y on Y)

Changes

(%)

Net Sales 150,234 （※）131,000 －－

Operating Income 4,456 1,700 △2,756 △61.9%

Ordinary Income 5,386 2,900 △2,486 △46.2%

Net Income Attributable

to Owners of Parent2,536 300 △2,236 △88.2%

Operating Margin 3.0% 1.3% △1.7Pts －

Net Income per Share 35.75Yen 4.23Yen △31.52Yen －

Although there is impact of increased production, sales forecast decrease by

applying new “Accounting Standard for Revenue Recognition”.

Profit forecast decrease due to the preparation costs of the new US plant.

（※）As the "Accounting Standard for Revenue Recognition" is applied from FY2021, the financial forecast for FY2021 is based

on this standard. Therefore, the amount and rate of increase / decrease in sales with respect to the actual value before the

application of the standard are not stated.

If the “Accounting Standard for Revenue Recognition” is not applied, sales will be 167,000 million yen (up 11.2% from FY2020.)

Financial Forecast for FY 2021

(Millions of yen)

Capital Investment, Depreciation and R&D Expenses

0

2

4

6

8

10

12

14

0

1

2

3

4

5

9.1 9.0

3.2

3.0

10.7

2.9


9.53.0

P.14

0

5

10

15

20

25

30

35

13.1

7.2

16.4

(Billions of yen) (Billions of yen) (Billions of yen)

≪Depreciation≫≪Capital Investment≫ ≪R&D Expenses≫

17.0

Increase investment in molds

for new products

Start of depreciation in the

new bases

Accelerate R&D to create

beyond expectation products

25.010.5

2.6

11.8

20.1 3.0

※FY2021: Plan※FY2021: Plan ※FY2021: Plan

Dividend


5.625 9.25 12 16 17 15 13 1510.625

19 1618 17

15 17 15

0

5

10

15

20

25

30

35

40

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

interim of period end of period

※On January 1, 2016, we split its common stock into four shares.

The annual dividends for FY2014 and the interim dividends for FY2015 are calculated as dividends per share, assuming that a

※ stock split was conducted.

16.25

2828.25 303434

(Yen)

30

The year-end dividend for FY 2020 will be 17 yen as planned.

The annual dividends for FY 2021 will be 30 yen, the same as FY2020.

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020FY2021

(Plan)

17.0％ 17.7％ 18.9％ 19.3％ 23.2％ 43.3％ 83.9％ 709.2%

Payout Ratio

Dividends per share

※FY2016：Excluding commemorative dividend

P.15

30

(Plan)


3. Operation of the new US plant

Co-creation Mazda

manufacturing Quality assurance ProcurementProduct development

& design

Expand DNC’s vertically integrated

global manufacturing method

BumperInstrument

panelInterior

Exterior

&

Function

DNUS will be a global strategic plant where generates stable profits

and continuous growth can be achieved

Co-creationToyota

What to achieve

Competitive plant operation

by generating synergy

P.17

Aiming achievement of the new US plant (DNUS)

【Process of manufacturing innovation 】【Output of Efforts】

◪ How to proceed of

manufacturing innovation

Product

Field

Production

Procurement

Logistic

Effort contentsResults

(Output)

●Combined planning

(Simultaneous structure

and process design)

・All test characteristics are OK at the local

first trial

・Satisfy with Cp / Cpk in consecutive

production process

●Pursuit of high-efficiency

flexible production line

(Pursuit of ideal process)

・Mixing Toyota and Mazda enables

multiproduct variable quantity

・Thorough loss reduction and the shortest

production process

・With defining fixed / variable, production

process / line minimizes dedicated area

●Maximize synergy by 3

companies’ cooperation

・Commonization of molding with Toyota and

Mazda

➨Low cost procurement by commonization

・Sharing the base of aqueous coating of

Toyota and Mazda

・Defined the sharing part and the original part

about painting regulation with Toyota and

Mazda

●Efficient supply chain

with optimal zoning

・Minimized lead time by synchronous supply

to the line

・Minimized the inventory and improvement

of efficiency by producing kinds near the line

◪ How to think of manufacturing innovation

Production

line

Structure &

components

Thorough fitting

Reliable quality &

competitive manufacturing

Qualification

of structure &

process

Combined

planning

P.18

Output of manufacturing

Multiproduct quality/quantity

Balance

Aiming

figurevarious kinds and

small quantity

Small variety and large quantity

Present

stage

Div

ers

ity to

en

ha

nce

pro

du

ct c

om

pe

titive

ness

Commonality to enhance volume efficiency

1】Progress towards mass production

2】Construction and equipment installation status

■Toyota : Confirmation stage for mass production equipment,

materials and parts

■Mazda :Preparation stage for all touring

■Construction : Plant building, plant interior, exterior

and office construction are completed

■Equipment installation : Completed for Toyota

【Molding】 Toyota parts are being molded with

a 3000-ton molding machine

【Painting】 Toyota parts are being painted on

the painting line

【Exterior】

●Adjacent to MTMUS, Alabama, USA

【Interior】

P.19

DNUS progress

1】Environmental initiatives

2】Towards localization in North America

●Contribution to the SDGs through expansion of

aqueous coating➨Expansion to domestic and overseas affiliated companies

1) Intimate operation with MTMUS, Toyota and Mazda➨Share longstanding know-how in the fields of personnel

and purchase

➨Enhance on-site communication

2) Community contribution (as a good neighbor)

➨Participation in local events and UNITED WAY fundraising

activities

➨Cooperation with AIDT ※1 (Local recruitment and human

resources training)

Toyota

MazdaLocal

community

DNUS

Good

Corporation

citizen

Community

contribution

3】New business strategy

1)Promotion of new proposal activities as one North America base➨Proposal of interior, exterior and powertrain parts : Incorporated into Medium-term Product

Strategy and Customer Satisfaction Strategy

P.20

Future initiative

【Coating constitution】

Aqueous coating

2K Clear

Base

Primer

※1： Alabama Industrial Development Training

4. Strengthening of R&D capabilities


Technical building

(Laboratory)

Headquarters

1F Trial labs

2F

17 laboratories set up divided 5 area

Head plant

Material development

equipment

(2-axis extruder)Injection molding machine

Heat & Sound Laboratory

Consolidation and strengthen of R&D capabilities

with relocation

P.22

Consolidate and reorganize development functionsStrengthening cooperation with sales, design, technical, and production departments

Strengthening cooperation

with all departments

Improvement of R&D function17 laboratories set up in the technical building

（Manufacturing / Sensitivity / performance evaluation /

advanced analysis / processing)

(Molding machine /

material development equipment)

Linear expansion

measurement

Molecular

structure analysisThermal

characteristics

measurement

Transmitted sound and

sound absorption measurement

Heat transfer

measurement

Sound

measurement

virtualAlgorithm

Driving Simulator

Improvement of analysis / measurement accuracy

Strengthening HMI development

Introduction of tools to promote MBD / MBR development

Strengthening heat & sound development

Introduction of equipment to evaluate operation

and visibility of Human-Machine Interface

Introduction of humidity temperature control

equipment in advanced analysis and physical

property measurement room

Introduction of evaluation equipment

Introduction of virtual environment and

establishment of design studio

Various material analyzers

R&D function improvement and strengthening(Corresponded to the transformation of the automotive industry)

P.23

Strengthening design and sensitivity capabilities

Set up a space to create awareness and new ideas by sharing ideas for

solving challenges with various stakeholders

こんなとこまでプラスチック？！®Can you tell? - It’s plastic !

Strengthening of Co-Creation

P.24

Exhibit new products and technologies

・Accelerate joint research by taking advantage of the superiority for the distance to neighboring

universities and public testing and research institutions

HDI, Hiroshima Digital Innovation center

DMERC, Digital Monozukuri (Manufacturing)

Education and Research Center

Promotion of open innovation

7km

DaikyoNishikawa

Hachihonmatsu

Plant

・Research on new

materials and molding

technology

・Nanoscale

visualization of

material structures

・Evaluation of materials

and electronic devices

・Acquisition of expertise

・Utilization of advanced analysis tools

・Participation in government projects

(MBR Consortium)

Higashi Hiroshima

City, Hiroshima

Hiroshima

University

AIST, The National Institute

of Advanced Industrial

Science and Technology

Hiroshima

techno plaza

DaikyoNishikawaHeadquarters/Head plant

Open innovation through industry-government-

academia collaboration

P.25

5. Sustainability Initiatives


Corporate responsibilities for worldwide sustainable society

are increasing, such as global climate change risks,

environmental regulations, and strengthening diversity and

corporate governance

Identify solutions that should be addressed as a player in the

automotive industry that handles resin products, and

restructure efforts to resolve these environmental issues

Social contribution through business activities by promoting the

sustainability mind within the company and incorporating into

business activities


Towards a sustainable society

Strengthen corporate management in line with ESG and SDGs

to contribute to a sustainable society through business activities


企業理念

当社では企業理念のもとSDGsへ取り組んでいくことを宣言いたします。

当社はSDGsに賛同し、事業活動を通じて持続可能な社会の実現に貢献してまいります。

ダイキョーニシカワ SDGs宣言

社員の幸福と繁栄を願い、人・社会・地球を大切にする企業を実現します。

感動創造企業を目指し、技術開発と革新的なものづくりにチャレンジします。

企業倫理の徹底を図り、地域から信頼される企業を築きます。

DaikyoNishikawa SDGs Statement

Management Philosophy

We will realize a company which places emphasis on people, society and the

earth, in pursuit of happiness and prosperity of our employees.

We will make challenges to technological development and innovative

manufacturing by aiming to be a sensation creating company.

We will establish a company that gains the confidence of communities by

thoroughly implementing our corporate philosophy.

We support the SDGs and will contribute to the achievement of

sustainable society through our business activities.

We declare that we will work on the SDGs based on management philosophy.

企業理念

当社では企業理念のもとSDGsへ取り組んでいくことを宣言いたします。

当社はSDGsに賛同し、事業活動を通じて持続可能な社会の実現に貢献してまいります。

ダイキョーニシカワ SDGs宣言

社員の幸福と繁栄を願い、人・社会・地球を大切にする企業を実現します。

感動創造企業を目指し、技術開発と革新的なものづくりにチャレンジします。

企業倫理の徹底を図り、地域から信頼される企業を築きます。

DaikyoNishikawa SDGs Statement

Women’s empowerment project

Our challenges :

Reform in awareness for women‘s career advancement and

understand the importance of women's empowerment

Measures：

1. Holding seminars for female employees and managers

2. Improving an employment environment that contributes to a

balance between life and work

In addition to Women’s empowerment, we will promote efforts to

support the development of the next generation, the employment of

diverse human resources, create rewarding workplaces, and focus on

initiatives that are even more conscious of diversity.


Examples of Sustainability Initiatives 1：

Promotion of diversity

Improving work environment where diverse human resources are

respected for personality and evaluated fairly

Utilization of renewable energy such as solar power

generation, geothermal heat, rainwater, etc.

Work in progress between processes and improvement of

energy efficiency through straight line production, etc.

Reduce CO2 emissions in terms of both fuel efficiency and

manufacturing process through weight reduction through

resignification

Industrial waste reduction

Saving petroleum resources by

developing bio-derived materials

Green procurement


Examples of Sustainability Initiatives 2：

Environmentally friendly manufacturing

Contributing to the formation of a recycling-oriented society through

environmentally friendly manufacturing


6. Efforts for Next Generation

Product Development

Efforts for Next Generation Product Development

P.32


Exhibited at AUTOMOTIVE ENGINEERING EXPOSITION 2021 ONLINE

Lightweight parts composed by Cellulose Nanofiber

・ Low specific gravity, high rigidity, and light weight

・ Sustainable and renewable plant-derived materials

Next-generation Switching Panel・ Crisp and user friendly icons appear

on soft leather-like epidermis

・ Accurate icon positioning by

DaikyoNishikawa’s unique

manufacturing method

Cooling parts・Cooling parts that are important for electrification

・Light weight and various shapes


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 and estimates

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

Phone: +81-82-493-5610

OtherInterior Parts

Engine Parts

Other

Instrument

Panel

Back

Door

Other

Exterior

Parts


Major Product

Instrument Panel Bumper

Oil Strainer

Resin Share

No.1

For Mazda, Daihatsu,

and Mitsubishi (Indonesia)

For Mazda, Daihatsu, Toyota, Honda,

Nissan, Suzuki, and Mitsubishi (Thailand)

For Mazda, Daihatsu,

and HondaBumper

Product Information – Automotive Parts

Strategic Products

Sales by Product

Total: 150.2 billion yen (FY2020)

We manufacture instrument panels, bumpers, and other interior and exterior plastic parts. We also make engine parts, such as

oil strainers that require high heat resistance. Our main focus now is plastic automotive body shells and fuel saucer.

Back Door

For Daihatsu

Priority Products

Fuel Saucer

For Subaru,

Mazda, and Daihatsu

Strategic Products

http://autoc-one.jp/daihatsu/tanto/newmodel-1491057/photo/0008.html


0

100

200

300

400

500

600

700


Approx.110

Started Mass

Production for

Daihatsu A-

segment car

Expand to B-segment

cars in addition to A-

segment cars

Outline of Resin Back Door Growth for Daihatsu

(Thousand Unit)

Approx.310

Approx.360

Approx.520

Approx.620 Approx.620

Approx.690

Expand in new

B-segment cars

We are also focusing on expanding sales to other than Daihatsu,

and aim to expand recruitment further.

Approx.600


Outline of Management index

7.3%9.2% 10.7% 9.2% 10.5%

7.9%

4.9% 3.0%

14.5%17.9%

24.5%

18.7% 20.4%

14.7%

6.5%3.3%

0.0%

10.0%

20.0%

30.0%

Operating Margin ROE

108.5

134.3

160.7 155.6

171.9

184.3 182.2

150.2

80.0

100.0

120.0

140.0

160.0

180.0

200.0


Consolidated Sales(Billions of yen)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Mazda Series Daihatsu Series the others

(Billion of yen)

79%75%

74%

76%6%

10%

15%

13%14%

75%


14%

77% 78%

13%

77%

13%

Sales ratio by customer

Changes in composition ratio spurred by customer diversification

77%

14%

consolidated financial results ended march 31, 2021

Documents