NOK : Financial Results for the 1H Ended September 30, 202

Second Quarter

Financial Results for the First Half

Ended September 30, 2022

NOK CORPORATION (7240 / Prime Market)

November 10, 2022

Disclaimer

• Any plans, targets, forecasts, strategies, policies and opinions relating to NOK CORPORATION or NOK Group companies or other information contained in these materials that are not historical facts constitute forward-looking statements. The content of such statements is based on the best information available to management at the time of publication. Actual performance may differ substantially from projections due to changes in a number of important factors implying risk and uncertainty with the potential to affect results, including economic conditions across operating regions, prices and foreign exchange rates.
• While every effort has been made to ensure the accuracy of the content of these materials, NOK provides no assurances to that effect. NOK assumes no liability whatsoever for harm related to any errors that may be caused to persons attending this presentation. NOK Corporation retains the copyright on these materials: unauthorized reproduction or duplication is prohibited.

Copyright (c) NOK CORPORATION All rights reserved.

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Contents

Page 5	Financial Results for the First Half
	Ended September 30, 2022
Page 12	Medium-Term Business Plan
Page 17	Financial Results by Business Segment
	for the First Half Ended September 30, 2022

• Page 23 Financial Forecasts by Business Segment for the Fiscal Year Ending March 31, 2023
• Page 29 Business Overview by Industry and by Region

Page 35

References

Copyright (c) NOK CORPORATION All rights reserved.

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Copyright (c)	4
NOK CORPORATION All rights reserved.

Financial Results for the First Half

Ended September 30, 2022

NOK Business Overview for the Six Months Ended September 30, 2022 NOK Business Overview

	Sales for automobile applications increased largely as a result of foreign exchange rate
	movements as well as passing on soaring raw material prices to selling prices, despite the
	negative effect of China's lockdowns during the first quarter of the current consolidated fiscal
	year and the shortage of semiconductors and other components. Looking at demand for
Seal	general industrial machinery applications, demand from manufacturers of machine tools and
robots in Japan remained firm while demand from manufacturers of construction machinery
Business	was negatively affected by China's lockdowns. Meanwhile, sales to manufacturers of general
	industrial machinery increased as a result of foreign exchange rate movements as well as
	passing on soaring raw material prices to selling prices. Operating income decreased mainly
	due to soaring material prices.
		Demand for components used in automobiles and high-end smartphones increased,
Electronic		despite the negative impact of China's lockdowns and the shortage of semiconductors
	and other components. Demand related to HDDs decreased. Sales rose on the back of
Product
	the significant positive effect of foreign exchange rate movements on the overall
Business		business. Operating loss narrowed due to the effect of a decrease in personnel
		expenses and foreign exchange rate movements.
		Sales increased reflecting a recovery in demand related to office equipment as
Other	well as the positive effect of foreign exchange rate movements, despite a
decline in demand for special lubricants. Operating income increased due to the
Business	effect of increased sales.
		Copyright (c) NOK CORPORATION All rights reserved.	6

Financial Results for the First Half Ended September 30, 2022

In the First Half Ended September 30, 2022, an increase in revenue due to the significant impact of foreign exchange rates resulting from the weaker yen, but a decrease in income due to surging raw material and energy prices and other factors.

( billion)	FY2021
	Actual
	H1
Net Sales	324.4
Operating Income	14.9
Ordinary Income	21.8
Profit Attributable to	13.0
Owners of Parent
Operating Income	4.6%
Margin
Capital Investment	17.3
Depreciation	21.0
Average Exchange	109.64
Rate
(Yen/US dollar)
No. of Employees	37,835

FY2022	YoY
Actual	Changes
H1	Amount	Retio
352.8	28.4	8.8%
6.1	△ 8.8	△58.9%
16.6	△ 5.3	△24.1%
10.2	△ 2.8	△21.7%
1.7%	△2.8pt	-
22.8	5.5	-
22.7	1.7	-
131.34	-	-
38,546	711	-

Copyright (c) NOK CORPORATION All rights reserved.

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Financial Results for the First Half Ended September 30, 2022 [vs. H2 FY2021]

(¥ billion) 【Net Sales】

400		352.8
		324.4
300
200	4.6%	21.8

【Income】

40

30

		Net Sales
20		Operating Income
	Ordinary Income

	14.9				16.6
100	13.0
		1.7%	10.2
				6.1
0
		H1 FY2021				H1 FY2022
		(Actual)				(Actual)
Average Exchange Rate	109.64				131.34
(Yen/US Dollar)

Copyright (c) NOK CORPORATION All rights reserved.

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0

Profit Attributable to Owners of Parent Operating Income Margin

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Financial Forecasts for the Fiscal Year Ended March 31, 2022

For the fiscal year ending March 31, 2023, we expect an increase in revenue due to the impact of foreign exchange rates and other factors, but a decrease in income due to surging raw material and energy prices and other factors.

( billion)		FY2021			FY2022				YoY Changes
		Actual		Actual	Revised Forecasts	H1		H2		Full Year
			on Oct.25
	H1	H2	Full Year	H1	H2	Full Year	Amount	Ratio	Amount	Ratio	Amount	Ratio
Net Sales	324.4	358.1	682.5	352.8	404.1	756.9	28.4	8.8%	46.0	12.8%	74.4	10.9%
Operating Income	14.9	16.5	31.3	6.1	17.2	23.3	(8.8)	(58.9%)	0.7	4.3%	(8.0)	(25.6%)
Ordinary Income	21.8	24.3	46.2	16.6	21.4	37.9	(5.3)	(24.1%)	(3.0)	(12.3%)	(8.3)	(17.9%)
Profit Attributable to	13.0	12.8	25.8	10.2	12.5	22.7	(2.8)	(21.7%)	(0.3)	(2.2%)	(3.1)	(12.0%)
Owners of Parent
Operating Income	4.6%	4.6%	4.6%	1.7%	4.3%	3.1%	(2.8pt)	-	(0.3pt)	-	(1.5pt)	-
Margin
Capital Investment	17.3	23.7	41.0	22.8	34.2	57.1	5.5	-	10.6	-	16.0	-
Depreciation	21.0	21.6	42.6	22.7	24.1	46.8	1.7	-	2.5	-	4.2	-
Average Exchange Rate	109.64	114.00	111.82	131.34	135.00	133.17	-	-	-	-	-	-
(Yen/US Dollar)
No. of Employees	37,835	37,613	37,613	38,546	38,733	38,733	711	-	1,120	-	1,120	-

* The H2 forecast is the full-year forecast minus the H1 results.

Copyright (c) NOK CORPORATION All rights reserved.

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Financial Forecasts for the Fiscal Year Ended March 31, 2023 [vs. FY2021]

(¥ billion)

【Net Sales】	756.9
800
	682.5
600
400	46.2
	37.9
	31.3

【Income】

80

60

Net Sales

Operating Income

40 Ordinary Income

Profit Attributable to

Owners of Parent

			25.8
200		4.6%		23.3	22.7
							3.1%
0
					FY2021				FY2022
					(Actual)				(Forecast)
Average Exchange Rate			111.82				133.17
(Yen/US Dollar)

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0

Operating Income Margin

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