Ichikoh Industries : FY2023 Financial Result

Investor Relations Meeting

FY2023 Financial Results &

Outlook

March 14th, 2024

Ichikoh Industries, Ltd.

Table of Contents

• FY2023 Financial Results (Jan～Dec）

• FY2024 Financial Forecast (Jan～Dec)

• Regarding PBR

• Medium- to Long-term Outlook

MARCH 2024 | 2

01 FY2023 Financial Results (January～December 2023）

ICHIKOH RESERVED

MARCH 2024 | 3

SALES OUTPERFORMANCE VS. MARKET

FY2023 Production Volumes per Market

(Source from Marklines)

Japan YoY +12.7％

ten thousand units

ASEAN YoY ▲1.1％

2023 Sales outperformance vs Market

(Excluding Mirror)

	Sales Excl.	Market	Sales out
	performance vs
2023 vs 2022	tooling and R&D	Production
Market production
	Variance	volume increase
	volume
Japan	15.8%	12.7%	3.1 pt
ASEAN*	13.4%	▲1.1%	14.5 pt

*ASEAN: Indonesia, Malaysia, Thailand

Both Regions outperforming the Market:

• Japan achieved higher sales growth in a recovering market thanks to New Project SOPs (incl. new models launched)
• ASEAN market overperformance and strong growth driven by new model launches (incl. new customers) has materialized despite a market showing first signs of stabilization

ICHIKOH RESERVED

MARCH 2024 | 4

FY2023 FINANCIAL RESULT (YEAR-ON-YEAR)

• Sales increased both in Japan and ASEAN, offsetting fully the decrease subsequent to the sale of Mirror business
• Operating Income increased as consequence of the additional Sales but also following the productivity improvement and the further inflation pass-through

					Hundreds million yen
	FY2022	FY2023	Increase/Decrease	Increase
	(Jan.～Dec. 2022）	(Jan.～Dec. 2023）	/Decrease
Sales	1,355	1,459	①	104	7.7%
Operating Income	39	74	②	35	88.5%
Operating Margin (%)	2.9%	5.1%	②/①	33.4%	2.2 pt
Ordinary Income	54	81		28	51.9%
Net Income	44	78		34	77.2%

Sales

Operating Income

2.9％

5.1％

ICHIKOH RESERVED

MARCH 2024 | 5

FY2023 FINANCIAL RESULT (VS. FORECAST)

• Sales slightly exceeded our Forecast and Operating Income significantly overachieved thanks to better Operational Performance in our Japan Operations
• Net Income was positively impacted from the gains on the sale of land in Isehara and other factors

					Hundreds million yen
	FY2023 Forecast	FY2023 Actual		Increase	Increase
		/Decrease
	(Jan.～Dec. 2023）	(Jan.～Dec. 2023）		/Decrease
	（vs. forecast）
	Forecast announced in TSE on Nov. 13, 2023
Sales	1,435	1,459	①	24	1.7%
Operating Income	64	74	②	10	16.0%
Operating Margin (%)	4.5%	5.1%	②/①	42.6%	0.6 pt
Ordinary Income	72	81		9	12.9%
Net Income	70	78		8	12.0%

Sales

Operating Income

4.5％

5.1％

ICHIKOH RESERVED

MARCH 2024 | 6

TREND IN QUARTERLY FINANCIAL RESULTS

Sales

◆ Generally stronger 1Q and 4Q while weaker 2Q and 3Q

Hundreds million yen

FY 2019 Actual

FY 2020 Actual

FY 2021 Actual

FY 2022 Actual

2023 Actual

Operating Income

FY 2019 Actual	FY 2020 Actual	FY 2021 Actual	FY 2022 Actual	2023 Actual
ICHIKOH RESERVED				MARCH 2024 | 7

FY2023 RESULTS BY REGION vs FY2022

• Japan: higher Profits spurred by sales growth, productivity improvement in Atsugi Plant, and inflation passthrough recovery not only on energy but also on import costs impacted by weakening JPY
• Overseas: despite the divestment from Chinese subsidiary of Mirror and the negative growth of the ASEAN market, profit have increased driven by new SOPs

FY	2022	FY2023	Operating Income	39⇒74（YoY +35）
Sales	1,355⇒1,459（YoY +104）
	Operating Margin %	2.9％⇒5.1％（YoY +2.2 pt.）
	+76	Hundreds million yen	+35	Hundreds million yen

+1

+16

+7

▲1

+5

Japan	Overseas	After	Elimination	Japan	Overseas	After
maket
		maket

Japan：Ichikoh non-consolidated（Isehara・Fujioka・Mirror・HQ）and Kyushu Ichikoh (Only Operating Income)

Overseas ：Indonesia・Malaysia・Thailand・China,	Aftermarket ：PIAA
ICHIKOH RESERVED	MARCH 2024 | 8

OPERATING INCOME BRIDGE - FY2023 vs FY2022

【OPERATING INCOME】

• Significant increase in Operating Income due to Sales Growth, improved Productivity in Japan, and Inflation Pass-Throughrecovery

Hundreds million yen

	7
	15
21	▲4	▲4

74

39

FY 2022	Activity		Productivity			FY2023
	R & D		Operating
Operating	contribution	Pass-through	Others
improvement	Income
Income

ICHIKOH RESERVED

MARCH 2024 | 9

FY2023 FINANCIAL RESULTS POINTS

【OPERATING INCOME～ORDINARY INCOME～NET INCOME】

• Ordinary Income: Equity in earnings from the Lighting Joint Venture in China with Valeo accounted for 1.0 Billion Yen (down 0.5 Billion Yen from last year)
• Net income: Gain on sales of Land in Isehara offsets losses on sales of affiliates etc.

		Hundreds million yen
		33
10	1	▲16
	▲4	▲19
74	81	78	44

Operating

Income

Equity in	Foreign
earnings of	exchange
affiliates	losses

Others

Ordinary

Income

Gain on sales of

non-current

assets

Others

Current

tax

Net

Income

ICHIKOH RESERVED

Lighting Joint Ventures with Valeo in China

Isehara Land Sales

MARCH 2024 | 10