Nippon Light Metal Holdings Company (5703) Investor presentation summary

Review of 2023 medium-term management plan (FY2023–FY2025)

• Completed quality-related recurrence prevention measures and advanced management reforms, including governance restructuring and internal control enhancements.

• Achieved sales price revisions and improved earnings levels, but profit targets were missed due to delayed semiconductor demand and slower EV market growth.

• Capital efficiency improved over three years, but ordinary profit and ROIC targets were not fully met; dividend payout ratios remained stable.

• Structural reforms focused on optimal resource allocation, decarbonization strategies, and capturing growth in EVs and semiconductors.

Long-term vision: 2035 vision

• Aims to become a global leader in circular value creation, focusing on closed-loop supply chains and recycling.

• Emphasizes co-creation with partners, resource circulation, and decarbonization as core strategies.

• Targets new value creation through advanced recycling, low-carbon materials, and global recycling flows.

• Addresses megatrends such as mobility, AI, 5G, energy efficiency, and climate change.

• Plans to overcome challenges like aging facilities, labor shortages, and siloed business responses.

2026 medium-term management plan (FY2026–FY2028)

• Implements transformation by deploying growth products in semiconductors, EVs, and global markets, especially the U.S. and India.

• Focuses on process transformation, organizational updates, and digital transformation (DX) for operational efficiency.

• Accelerates capital allocation, M&A, and business portfolio renewal to support growth and efficiency.

• Human capital strategy revised to promote autonomous professionals, diversity, and fair evaluation.

• Targets ordinary profit above 30 billion yen and ROIC of 8% or more by FY2028.