Slides
Page 1
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Semi-annual financial results and Full-year financial forecasts for the fiscal year ending March 31, 2027 November 2, 2026 Nippon Light Metal Holdings Company , Ltd. Tokyo Stock Exchange Prime Market 5703
Page 2
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. ◼ Semi-annual financial results: 20.2 billion yen in ordinary profit (up 107% year on year) ◼ Full-year ordinary profit forecast: 35.0 billion yen (revised upward from the August 3 forecast of 31.0 billion yen) ◼ Resolution to Acquire Treasury Shares (for the Purpose of Implementing a Flexible and Agile Capital Policy) ● Second-half performance is forecast to be below first-half results, partly due to softening and stabilizing aluminum ingot prices. ● In the second half, sales of secondary alloy ingots, semiconductor-related products, and aluminum sheets for LiB applications are expected to remain high, while truck body sales have been on a recovery path since the first half. ● Despite higher costs from rising raw material prices, the effects of sales price revisions are expected to materialize and then strengthen in the second half. ● A partial transfer of shares in an equity-method associate will generate extraordinary income in the second half. ● Sales: Net sales increased, driven by favorable business conditions for secondary alloy ingots, higher sales of thick aluminum sheets for semiconductor manufacturing equipment as demand recovered, and continued high demand for chemicals and foil and powder products for heat dissipation applications and for aluminum sheets for LiB applications. The impact of rising aluminumingot prices in Q1 also contributed. ● Profitability: Profit increased, driven by the sales increases noted above in alumina and chemicals, aluminum ingots, sheet and extrusion products, and foil and powder products. The rise in aluminum ingot prices in Q1 also boosted profit significantly, despite softer prices in Q2. (First-half operating profit, ordinary profit, and profit for the period came in around 20% above the forecasts announced on August 3.) Summary of semi-annual financial results and full-year financial forecasts for the fiscal year ending March 31, 2027 1. Semi-annual financial results 2. Full-year financial forecasts 2
Page 3
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Table of Contents 1. Semi-annual financial results for the fiscal year ending March 31, 2027 2. Forecasts of financial results for the full fiscal year ending March 31, 2027
Page 4
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Semi-annual financial results for the fiscal year ending March 31, 2027 Semi-annual financial results for the fiscal year ending March 31, 2027 – compared with the same period in the previous fiscal year (Billions of yen) Fiscal 2025 Semi-annual Results Fiscal 2026 Semi-annual Forecasts (Aug. 3) Fiscal 2026 Semi-annual Results Change YoY Net sales 278.7 350.0 337.8 +59.1 (+21.2%) Operating profit 11.6 17.0 21.4 +9.8 (+83.5%) Ordinary profit 9.7 16.0 20.2 +10.5 (+107.0%) Profit attributable to owners of parent 5.5 10.0 11.5 +6.0 (+110.8%) Interim dividend per share 25 yen 50 yen 50 yen +25 yen 4 Profit increased significantly, driven by favorable business conditions for secondary alloy ingots, higher sales of semiconductor-related products, and continued strong demand for heat dissipation applications. Price differential gains from rising aluminum ingot prices also contributed substantially in Q1.
Page 5
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 97 202 +80 +21 +42 +44 +5 △ 45 △ 42 FY25 Semi-annual Results Changes in sales Growth products Sales price Aluminum ingot- related gains/losses Purchased products Fixed costs Non-operating and other items FY26 Semi-annual Results +4.2 +4.4 +0.5 -4.5 Main factors / Affected Business Groups [+] Metal (Secondary alloy ingot)/Aluminum Foil/Sheet & Extrusion (Aluminum sheet) [+] Aluminum Foil/Sheet & Extrusion (Aluminum sheet)/Automotive Parts [+] Aluminum Foil/Transport Equipment/Sheet & Extrusion (Extrusion)/Chemicals [+] Metal (Procurement), Sheet & Extrusion (Aluminum sheet/Extrusions) [-] Aluminum ingot (Transport Equipment ) , various materials [-] Labor costs [+] Exchange rate, [-] Interest rate (Billions of yen) +10.5 billion yenFY25/ April–Sept. Results FY26/ April–Sept. Results Higher sales of aluminum foil, powder products for heat dissipation, and aluminum sheets (including thick sheets for semiconductor manufacturing equipment), together with the effects of sales price revisions, boosted profit. Price differential gains from rising aluminum ingot prices and the impact of secondary alloy market conditions (both included in the sales volume impact) also contributed. 5 Factors behind changes in ordinary profit – compared with the same period in the previous fiscal year Semi-annual financial results for the fiscal year ending March 31, 2027 9.7 20.2 +8.0 +2.1 -4.2
Page 6
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 6 Fiscal 2025 Year-end Results Fiscal 2026 Semi-annual Results Change Cash and deposits 33.1 46.8 +13.7 Notes and accounts receivable – trade, and contract assets 153.8 146.6 -7.2 Inventories 110.2 128.6 +18.4 Other current assets 15.7 16.6 +0.9 Property, plant and equipment 179.8 180.4 +0.6 Other non-current assets 63.7 64.4 +0.7 Total assets 556.3 583.4 +27.1 Fiscal 2025 Year-end Results Fiscal 2026 Semi-annual Results Change Notes and accounts payable – trade 59.9 62.1 +2.2 Bonds payable and borrowings 166.0 181.5 +15.5 Other liabilities 62.5 61.5 -1.0 Total liabilities 288.4 305.1 +16.7 Shareholders' equity 224.7 233.0 +8.3 Accumulated other comprehensive income 24.0 25.1 +1.1 Non-controlling interests 19.2 20.2 +1.0 Total net assets 267.9 278.3 +10.4 Total liabilities and net assets 556.3 583.4 +27.1 (Billions of yen) ◼ Inventories and borrowings increased due to rising aluminum ingot prices. Semi-annual financial results for the fiscal year ending March 31, 2027 Financial Position
Page 7
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 7 • Operating cash flow decreased as higher aluminum ingot prices increased working capital. Cash outflows from investing activities increased as spending on fixed asset acquisitions rose year on year.⇒ Free cash flow decreased by 9.4 billion yen. • Outstanding interest-bearing debt increased due to higher short-term borrowings and other factors. The D/E ratio stood at approximately 0.70 times. Cash Flow Overview 23.1 15.4 -11.8 -13.5 11.3 1.9 Fiscal 2025 Semi-annual Results Fiscal 2026 Semi-annual Results Cash flow from operating activities Cash flow from investing activities Free cash flow (Billions of yen) Cash flows D-E ratio -7.7 -1.7 166.0 181.5 33.1 46.8 0.67 0.70 Fiscal 2025 Year-end Results Fiscal 2026 Semi-annual Results Outstanding interest-bearing debt (including leases) Cash and deposit balances D/E ratio (Billions of yen) (Billions of yen) +13.7 +15.5 Semi-annual financial results for the fiscal year ending March 31, 2027
Page 8
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 8 ◼ Aluminum ingot and chemicals: Favorable conditions for chemicals used in heat dissipation and semiconductor-related applications, and for secondary alloy ingots in Japan and overseas ◼ Aluminum sheet and extrusions: Higher sales of thick aluminum sheets for semiconductor manufacturing equipment; continued high demand for aluminum sheets for LiB packages Semi-annual financial results for the fiscal year ending March 31, 2027 Segment information – compared with the same period in the previous fiscal year (Billions of yen) Semi-annual Net Sales Semi-annual Operating Profit Fiscal 2025 Results Fiscal 2026 Forecasts (Aug. 3) Fiscal 2026 Results Change YoY Fiscal 2025 Results Fiscal 2026 Forecasts (Aug. 3) Fiscal 2026 Results Change YoY Aluminum ingot and chemicals 90.7 133.0 128.4 +37.7 (+41.6%) 6.7 12.0 14.0 +7.3 (+108.5%) Aluminum sheet and extrusions 51.0 69.0 62.0 +11.0 (+21.5%) 1.4 3.0 4.1 +2.7 (+190.8%) Fabricated products and others 81.4 85.0 84.1 +2.7 ( +3.3%) 1.4 0 -0.4 -1.8 （ー） Aluminum foil, powder, and paste 55.6 63.0 63.3 +7.7 ( +14.0%) 3.7 4.0 5.3 +1.6 (+43.1%) Management, shared ー ー ー － -1.6 -2.0 -1.6 ±0 Total 278.7 350.0 337.8 +59.1 (+21.2%) 11.6 17.0 21.4 +9.8 (+83.5%)
Page 9
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 9 ⚫ Sales increased despite weakness in aluminum hydroxide and alumina for fire-resistant fillers and other applications thanks to higher sales of products for semiconductor manufacturing equipment. In chemical products, higher year-on-year sales of inorganic chlorine compounds also contributed to the increased sales. ⚫ Profits increased even as raw material costs rose due to sales price revisions. ⚫ Japan: Increased sales in the automotive sector and demand for alternatives amid the situation in the Middle East as well as price pass-through and market price effects contributed to higher profits. ⚫ Overseas: Favorable underlying demand and market price conditions supported strong performance in the U.S. Profits rose in Thailand on firm sales and price pass-through. Business in China remained sluggish but profitable thanks to sales of high value-added products. Profits grew in India as the situation in the Middle East led to full-scale operations. ◼ Chemicals: Profit increased on continued growth in sales of products for semiconductor manufacturing equipment, with sales price revisions also contributing. ◼ Metal: Profit increased on generally favorable business conditions for secondary alloy ingots in Japan and overseas, together with the impact of rising aluminum ingot prices. Semi-annual financial results for the fiscal year ending March 31, 2027 Aluminum ingot and chemicals Chemicals Business Group Alumina and chemicals (Nippon Light Metal, chemicals） Metal Business Group Secondary alloy ingot (Nikkei MC Aluminium) Net sales (Billions of yen) Operating profit (Billions of yen) Net sales (Billions of yen) Sales volume (1,000 tons) 90.7 128.4 6.7 14.0 0.0 5.0 10.0 15.0 0.0 50.0 100.0 150.0 FY25 4-9 FY26 4-9 Nippon Light Metal, chemicals Nikkei MC Aluminium Operating profit 60.9 70.6 71.9 82.2 132.8 152.8 FY25 4-9 FY26 4-9 China India China Japan Japan Thailand Thailand US US India216 233 FY25 4-9 FY26 4-9 21.6 23.3
Page 10
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 10 ⚫ Sales increased as sales of products for truck bodies remained firm on favorable market conditions and aluminum ingot prices rose. ⚫ Profit increased year on year due to this sales performance and higher sales prices reflecting aluminum market conditions. ⚫ Sales increased, driven by a recovery in demand that lifted sales of thick aluminum sheets for semiconductor manufacturing equipment and by continued strong performance of products for LiB packages. ⚫ Higher sales prices reflecting aluminum market conditions helped increase profit for the first half as a whole, although their impact eased in Q2. For sheet products, sales of thick aluminum sheets for semiconductor manufacturing equipment increased as demand recovered, while aluminum sheets for LiB packages remained strong. For extrusions, firm sales of products for truck bodies supported sales growth. In addition, higher sales prices reflecting aluminum market conditions contributed to sales and profit growth. Semi-annual financial results for the fiscal year ending March 31, 2027 Aluminum sheet and extrusions Net sales (Billions of yen) Operating profit (Billions of yen) Sheet & Extrusion Business Group Aluminum Sheet Div. (Nippon Light Metal, sheets) Sheet & Extrusion Business Group Extrusions Div. (Nikkeikin Aluminium Core Technology) Net sales (Billions of yen) Net sales (Billions of yen) 51.0 62.0 1.4 4.1 0.0 2.0 4.0 6.0 8.0 0 20 40 60 80 FY25 4-9 FY26 4-9 Nikkeikin ACT 他 Operating profit 24.0 29.1 FY25 4-9 FY26 4-9 17.9 20.2 FY25 4-9 FY26 4-9 Nippon Light Metal, sheets
Page 11
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 11 Transport Equipment Business Group (Nippon Fruehauf) Engineering Business Group Panel System Div. (Nikkei Panel System) Net sales (Billions of yen) Net sales (Billions of yen) Automotive Parts Business Group (Nikkeikin Aluminum for Mobility) 37.0 37.0 FY2025 4-9 FY2026 4-9 15.3 15.5 FY2025 4-9 FY2026 4-9 ⚫ Despite high order levels, paint shortages stemming from the situation in the Middle East forced substantial production cuts in Q1. Catch-up production in Q2 brought first-half net sales to the prior-year level. ⚫ Profit declined due to the factors noted above, as well as the product mix and higher material prices. ⚫ Refrigerator and freezer field: Sales increased on continued demand for expansion and rebuilding of food plants and refrigerated and frozen warehouses, but profit declined due to higher costs. ⚫ Clean room field: Sales and profit declined despite continued semiconductor-related capital investment demand, partly due to a reactionary decline following the concentration of large- scale projects in the previous fiscal year. ⚫ Japan: Performance improved year on year, driven by higher sales from new product additions, an improved product mix, and sales price optimization. ⚫ Overseas:Despite successful cost reduction efforts, both the U.S. and China operations remained unprofitable. Performance in automotive parts improved, driven by new product additions and sales price optimization. However, profit declined in Transport Equipment (truck bodies) due to the situation in the Middle East (production cuts in Q1 and higher costs), and the Engineering Business Group’s panel system business saw lower sales in the clean room field. As a result, segment profit turned negative. 81.4 84.1 1.4 -0.4 △ 2 0 2 4 6 8 10 (20) 0 20 40 60 80 100 FY2025 4-9 FY2026 4-9 Nikkei Panel System Nikkeikin Aluminum for Mobility Nippon Fruehauf Operating profit 15.0 17.3 FY2025 4-9 FY2026 4-9 Net sales (Billions of yen) Semi-annual financial results for the fiscal year ending March 31, 2027 Fabricated products and others Operating profit (Billions of yen) Net sales (Billions of yen)
Page 12
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 12 Powder and Paste Div. Household Products Div. Aluminum Foil Business Group (Toyo Aluminium) Aluminum Foil Div. 55.6 63.3 3.7 5.3 0 2 4 6 8 0 20 40 60 80 FY2025 4-9 FY2026 4-9 Household products and others adjusted Powder and paste Aluminum foil Operating profit Foil products for LiB exteriors remained in an adjustment phase, while sales for medical product packaging returned to growth. Powder and paste saw continued strong performance in heat dissipation applications as well as increased domestic and overseas demand for paste for automobile paints, also contributing to higher sales and profit for the segment. ⚫ For foil products for LiB exteriors, EV demand remained in an adjustment phase. However, sales of processed foil for medical product packaging returned to growth following the previous fiscal year’s adjustment phase. This growth, together with higher aluminum ingot prices and sales price revisions, increased net sales and profit for the division as a whole. ⚫ Demand remained strong for aluminum powder for electronic materials and aluminum nitride used in heat dissipation applications, while higher demand in both domestic and overseas markets drove increased sales of paste for automobile paints. As a result, net sales and profit for the division grew substantially year on year. ⚫ In consumer products, an expanding filter market and stronger sales efforts helped increase sales of house-care products, and sales price revisions also lifted consumer product sales. Packaging product sales increased due to sales price revisions for aluminum containers, despite lower sales volumes resulting from higher retail prices for food manufacturers’ products. Overall profit for the division was higher year on year. Semi-annual financial results for the fiscal year ending March 31, 2027 Aluminum foil, powder, and paste Operating profit (Billions of yen) Net sales (Billions of yen)
Page 13
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Beyond the business groups and revisions listed below, we are also requesting sales price revisions to pass through sharp increases in material costs and energy prices and changes in labor and other costs, and correcting prices for individual low- profitability transactions. 13 Status of sales price revisions Segment Business groups and business divisions Items subject to price revision Start time Revision details ⚫ Aluminum ingot and chemicals Chemicals business group NLM Chemicals • Aluminum hydroxide, alumina 2024 − Price increase of 10% or more 2025 − Price increase of 20 yen/kg to 30 yen/kg 2026 − Price increase of 10% or more ⚫ Aluminum sheet and extrusions Sheet & Extrusion business group Nippon Light Metal, sheets • All aluminum sheet products 2024 − Increase in processing fees (roll margin price) 2026 (July) − Cost increases passed through to pricing Sheet & Extrusion business group Nikkeikin Aluminium Core Technology • All aluminum sheet products 2025 − Increase in processing fees (roll margin price) 2026 (August) − Revisions on a transaction-by- transaction basis ⚫ Fabricated products and others Transport Equipment business group Nippon Fruehauf • All products including van bodies and trailers 2023・2024 − Price increases at the respective revision rates for products and parts • All products including van bodies and trailers, and all other parts and components April 2026 (parts and components in October) − Products: about 15% increase − Parts and components: 10–20% increase ⚫ Aluminum foil, powder and paste Aluminum Foil business group Toyo Aluminium • Resin and paper raw materials for household use 2023 − 20% or more • Aluminum foil and fabricated products, all types of powder and paste products 2025 − Increase in labor costs + specific increase for each item
Page 14
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Table of Contents 1. Semi-annual financial results for the fiscal year ending March 31, 2027 2. Forecasts of financial results for the full fiscal year ending March 31, 2027
Page 15
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Fiscal 2025 Results Fiscal 2026 Forecasts (Aug. 3) Fiscal 2026 Revised Forecasts (Nov. 2) Change YoY Net sales 585.5 690.0 700.0 +114.5 (+19.6%) Operating profit 25.6 33.0 37.0 +11.4 (+44.4%) Ordinary profit 23.6 31.0 35.0 +11.4 (+48.0%) Profit attributable to owners of parent 15.6 17.0 20.0 +4.4 (+28.3%) Dividend per share 80 yen 110 yen 110 yen +30 yen 15 Full-year financial forecasts for the fiscal year ending March 31, 2027 Financial forecasts and dividend forecasts – compared with the same period in the previous fiscal year (Billions of yen) Full-year forecasts revised upward to reflect stronger first-half performance (Profit came in approximately 20% above the August 3 forecast). Second-half outlook (below the first-half level): The impact of aluminum market conditions is expected to ease, while strong sales are expected to continue. The forecasts factor in extraordinary income from a partial transfer of shares in an equity-method associate (announced today, November 2).
Page 16
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 16 ◼ Market environment: First-half trends are generally expected to continue. Segment Business Group (Main divisions) Performance trend* Demand outlook from the second half onward [additional factors for the second half] Aluminum ingot and chemicals Chemicals (NLM Chemicals) Higher sales of products for semiconductor manufacturing equipment as demand recovers Metal (Nikkei MC Aluminium) Strong performance driven by continued favorable business conditions in Japan and overseas Aluminum sheet and extrusions Sheet & Extrusion (NLM sheets) Upward trend in sales of thick aluminum sheets for semiconductor manufacturing equipment; sustained high demand for aluminum sheets for LiB applications (Nikkeikin Aluminium Core Technology) Firm demand for products for truck bodies Fabricated products and others Transport Equipment (Nippon Fruehauf) Continued favorable demand; recovery from lower first-half sales (caused by the situation in the Middle East) Automotive Parts (Nikkeikin Aluminum for Mobility) Japan: Continued performance improvement driven by new product additions, an improved product mix, and sales price optimization Overseas: Continued weakness in China; ongoing performance improvement through higher productivity in the U.S. Engineering (Nikkei Panel System) Firm demand in the refrigerator and freezer field; weak demand in the clean room field [→ recovery expected late in the second half] Aluminum foil, powder and paste Aluminum Foil (Toyo Aluminium) Increased sales for medical product packaging in both Japan and India; continued full-capacity production for heat dissipation applications Full-year financial forecasts for the fiscal year ending March 31, 2027 Business environment assumptions *Performance trends are compared with FY2025 full-year results and include the impact of aluminum ingot price fluctuations.
Page 17
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Main factors / Affected Business Groups+11.4 billion yen 17 236 350 +81 +49 +90 +43 △ 79 △ 66 △ 4 FY25 Results Changes in sales Growth products Sales price Aluminum ingot- related gains/losses Purchased products Fixed costs Non-operating and other items FY26 forecasts -6.6 -0.4 Although the positive impact from higher aluminum ingot prices and favorable market conditions for secondary alloys has subsided, the benefits of selling price revisions have increased, while growth products, including heat dissipation applications, continue to expand. Factors behind changes in ordinary profit – compared with the same period in the previous fiscal year Full-year financial results forecasts for the fiscal year ending March 31, 2027 [+] Metal (Secondary alloy ingot)/Aluminum Foil/Sheet & Extrusion (Aluminum sheet)/Chemicals [+] Aluminum Foil/Sheet & Extrusion (Aluminum sheet)/Chemicals/Automotive Parts [+] Aluminum Foil/Transport Equipment/Chemicals/Sheet & Extrusion (Extrusions) [+] Metal (Procurement), Sheet & Extrusion (Aluminum sheet/Extrusions)/Aluminum Foil [-] Aluminum ingot (Transport Equipment ) , various materials [-] Labor costs [-] Exchange rate, Interest rate FY25 Results FY26 Results (Billions of yen) 35.0 +4.9 23.6 +8.1 +4.3 -7.9 +9.0
Page 18
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 18 Segment information – compared with the same period in the previous fiscal year (Billions of yen) Full-year Net Sales Full-year Operating Profit Fiscal 2025 Results Fiscal 2026 Forecasts (Aug. 3) Fiscal 2026 Semi-annual Revised Forecasts (Nov. 2) Change YoY Fiscal 2025 Results Fiscal 2026 Forecasts (Aug.3) Fiscal 2026 Semi-annual Revised Forecasts (Nov. 2) Change YoY Aluminum ingot and chemicals 189.4 237.0 251.0 +61.6 (+32.6%) 9.8 16.5 19.0 +9.2 (+93.9%) Aluminum sheet and extrusions 105.4 141.0 133.0 +27.6 (+26.1%) 5.7 7.5 7.0 +1.3 (+20.7%) Fabricated products and others 177.7 183.0 186.0 +8.3 ( +4.7%) 6.0 5.0 5.5 -0.5 (-7.7%) Aluminum foil, powder and paste 113.0 129.0 130.0 +17.0 ( +15.0%) 7.7 8.0 9.5 +1.8 (+24.2%) Management, shared － ー ー － -3.6 -4.0 -4.0 -0.4 Total 585.5 690.0 700.0 +114.5 ( +19.6%) 25.6 33.0 37.0 +11.4 (+44.4%) Full-year financial forecasts for the fiscal year ending March 31, 2027 ◼ Aluminum ingot and chemicals: Favorable business conditions for secondary alloy ingots are expected to continue, while the impact of aluminum ingot market conditions is forecast to ease. ◼ Fabricated products and others: The truck body business is expected to recover, while sales of thermal insulation panels for semiconductor plants are recovering.
Page 19
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 129.0 143.4 143.8 166.5 272.8 309.9 FY2025 4-3 FY2026 4-3 19 ⚫ Sales are expected to increase despite lower sales volumes of aluminum hydroxide and alumina due to continued weakness in fire-resistant fillers and other applications. This reflects a continued upward trend in sales of products for semiconductor manufacturing equipment. In chemical products, higher sales of inorganic chlorine compounds than in the previous fiscal year are also expected to contribute to increased sales. ⚫ Profit growth is projected, partly because the effects of sales price revisions continue to materialize. ◼ Chemicals: Profit is expected to increase as sales of products for semiconductor manufacturing equipment continue to trend upward, with sales price revisions also contributing. ◼ Metal: Demand for secondary alloy ingots is expected to remain generally high in both Japan and overseas, while the impact of aluminum market conditions eases. ⚫ Japan: Orders from the automotive sector are forecast to trend upward despite easing demand for alternatives arising from the situation in the Middle East. Price pass-through and favorable market price conditions continue. ⚫ Overseas: Favorable underlying demand and market price conditions are expected to continue in the U.S. Business in Thailand is firm, while China remains sluggish but profitable. In India, demand for alternatives arising from the situation in the Middle East translates into ongoing orders, sustaining strong performance. Aluminum ingot and chemicals Net sales (Billions of yen) Operating profit (Billions of yen) Chemicals Business Group Alumina and chemicals (Nippon Light Metal, chemicals） Metal Business Group Secondary alloy ingot (Nikkei MC Aluminium) Net sales (Billions of yen) Japan US Thailand China India Thailand India China US Japan 433 461 FY2025 4-3 FY2026 4-3 46.143.3 FY25 Results FY26 Forecasts FY25 Results FY26 Forecasts Full-year financial forecasts for the fiscal year ending March 31, 2027 189.4 251.0 9.8 19.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 FY25 Results FY26 Forecasts Nikkei MC Aluminium 他 Operating profit Sales volume (1,000 tons) Nippon Light Metal, chemicals
Page 20
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 20 For sheet products, demand for thick aluminum sheets for semiconductor manufacturing equipment continues to trend upward, while aluminum sheets for LiB packages remain strong. For extrusions, sales of products for truck bodies remain firm on favorable market conditions. The impact of higher sales prices reflecting aluminum market conditions is expected to ease. ⚫ Market conditions for products for truck bodies are expected to remain firm. ⚫ Profit is expected to exceed the prior-year level due to sales performance, despite the easing impact of higher sales prices reflecting aluminum market conditions. Aluminum sheet and extrusions Operating profit (Billions of yen) Net sales (Billions of yen) Sheet & Extrusion Business Group Aluminum Sheet Div. (Nippon Light Metal, sheets) Sheet & Extrusion Business Group Extrusions Div. (Nikkeikin Aluminium Core Technology) 36.9 41.1 FY2024 Results FY2025 Forecasts 49.9 64.2 F25 通期 F26 通期FY25 Results FY26 Forecasts 49.9 Net sales (Billions of yen) Net sales (Billions of yen) FY25 Results FY26 Forecasts Full-year financial forecasts for the fiscal year ending March 31, 2027 105.4 133.0 5.7 7.0 0.0 5.0 10.0 15.0 0.0 50.0 100.0 150.0 FY25 Results FY26 Forecasts Nippon Light Metal, sheets Nikkeikin ACT Operating profit ⚫ Sales are expected to continue growing, driven by an ongoing upward trend in demand for thick aluminum sheets for semiconductor manufacturing equipment and by sustained high demand for products for LiB packages. ⚫ Profit is forecast to rise due to these higher sales, although the impact of higher sales prices reflecting aluminum market conditions eased in the first half.
Page 21
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 21 Performance in the automotive parts business continues to improve in Japan. In Transport Equipment (truck bodies), catch-up production and sales price revisions are projected to bring profit closer to the prior-year level. In the Engineering Business Group’s panel system business, the clean room field is expected to recover in the latter part of the second half. ⚫ Market conditions are favorable, with orders remaining high. Following production cuts in Q1, catch-up production in the first half is expected to bring profit closer to the prior-year level, with the effects of sales price revisions also materializing. ⚫ Japan: As in the first half, performance continues to improve, driven by new product additions, an improved product mix, and sales price optimization. ⚫ Overseas: Business in China is sluggish, while performance in the U.S. continues to improve on productivity gains. ⚫ Refrigerator and freezer field: Sales remain firm thanks to demand for expansions and replacement of aging facilities at food plants and refrigerated and frozen warehouses. ⚫ Clean room field: Despite continued demand for semiconductor- related capital investment, recovery is not expected until the latter part of the second half due to a reactionary decline following the concentration of large projects in the previous fiscal year. Fabricated products and others Operating profit (Billions of yen) Net sales (Billions of yen) Transport Equipment Business Group (Nippon Fruehauf) Automotive Parts Business Group (Nikkeikin Aluminum for Mobility) Engineering Business Group Panel System Div. (Nikkei Panel System) Net sales (Billions of yen) Net sales (Billions of yen) Net sales (Billions of yen) 763 806 FY25 Results FY26 Forecasts 335 335 FY25 Results FY26 Forecasts 32.0 36.2 FY25 Results FY26 Forecasts 76.3 80.6 33.5 33.5 Full-year financial forecasts for the fiscal year ending March 31, 2027 177.7 186.0 6.0 5.5 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 FY25 Results FY26 Forecasts 他 Nikkei Panel System Nikkeikin Aluminum for Mobility Operating profit Nippon Fruehauf
Page 22
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 22 Foil sales for medical product packaging continue to trend upward. In powder and paste, demand growth in automobile paint applications is expected to moderate in the second half, while demand for heat dissipation applications remains strong. Overall, full-year sales and profit are also expected to increase. ⚫ Foil products for LiB exteriors remain in an adjustment phase throughout the year, with sales expected to decline year on year. However, sales price revisions for processed foil for medical product packaging in both Japan and India are expected to offset sharp increases in raw material prices, increasing net sales for the division as a whole. ⚫ For powder, strong demand for heat dissipation applications keeps production of aluminum powder for electronic materials and aluminum nitride at full capacity. For paste, demand growth in automobile paint applications is expected to moderate from its strong first-half pace, but net sales and profit are projected to increase substantially year on year. ⚫ Despite lower sales volumes for both consumer and packaging products due to high inflation and higher retail prices, sales price revisions are expected to maintain profit at the prior-year level. Aluminum foil, powder, and paste Operating profit (Billions of yen) Net sales (Billions of yen) Aluminum Foil Business Group (Toyo Aluminium) Aluminum Foil Div. Powder and Paste Div. Household Products Div. Full-year financial forecasts for the fiscal year ending March 31, 2027 113.0 130.0 7.7 9.5 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 FY25 Results FY26 Results Household products and others adjusted Powder and paste Aluminum foil Operating profit
Page 23
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 23 30 40 40 40 40 40 10 20 25 40 50 50 40 50 50 65 45 10 40 50 55 60 60 30 40 50 60 80 80 90 90 65 85 50 50 70 80 100 110 0 20 40 60 80 100 120 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY26 Interim Year-end Forecasts (Nov. 2) = Forecasts (Aug. 3) Forecasts (May 15) Dividends per share ◼ Shareholder return policy: Total payout ratio of approximately 40% (including acquisition of treasury stock) ◼ Dividend per share: 110 yen, a 30-yen increase from FY2025 Interim dividend: 50 yen; year-end dividend: 60 yen ◼ Decided to acquire treasury stock (Yen) The Company carried out a share consolidation at a ratio of 1 share for every 10 shares of common stock on October 1, 2020, and the dividend amount per share prior to FY2019 (fiscal year ended in March 2020) takes into account the effects of this share consolidation. Full-year financial forecasts for the fiscal year ending March 31, 2027
Page 24
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Supplemental materials
Page 25
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Announced June 15, 2026: Basic Agreement on the Integration of Aluminum Extrusion Businesses 25 Nippon Light Metal Kobe Steel Scope • All businesses of Nikkeikin Aluminium Core Technology • Divisions related to products manufactured at the Niigata Plant and Kambara Plant (Shizuoka Pref.), and to the extrusion business • Chōfu Plant (Yamaguchi Pref.): Divisions related to aluminum extrusion, billet casting, and fabricated products • Domestic aluminum extrusion sales divisions Integration structure Joint holding company structure envisioned T arget integration date April 2027 or later Post-integration ownership ratio Basic policy: Nippon Light Metal to hold a majority stake Nippon Light Metal Kobe Steel Extrusion product markets Wide range of sectors, including transport equipment, social infrastructure, and containers Primarily automotive parts, as well as railway vehicles and distribution sales Strengths • Superior processing technology • Order track record across diverse sectors • Advanced alloy development capabilities • Broad supply network leveraged to lead the automotive sector https://www.nikkeikinholdings.co.jp/news/news/common/pdf/p2026061501hd.pdf Entered into a basic agreement with Kobe Steel, Ltd. to integrate both companies’ domestic aluminum extrusion businesses (target: April 2027 or later) and examine specific terms Execution of a definitive agreement expected around the end of November 2026 Basic Terms of the Integration To be determined through good-faith discussions between the two companies, based on the following: Purpose of the Integration • Combine both companies’ strengths to pursue sustainable business growth and enhanced corporate value • Create high value-added products by combining both companies’ strengths • Enhance recycling efficiency by optimizing scrap collection with location in mind • Build an optimal production and logistics network using location swaps
Page 26
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Reportable Segment Business Group Main divisions / businesses Main business companies / business divisions Aluminum ingot and chemicals Chemicals • Chemicals div. −NLM Chemicals • Carbon products div. −Nippon Electrode Metal • Secondary alloy ingot div. −Nikkei MC Aluminium • Electronic materials div. −NLM capacitor foil div. Aluminum sheet and extrusions Sheet & Extrusion • Aluminum sheet div. −NLM sheets • Extrusions div. −Nikkeikin Aluminium Core Technology Fabricated products and others Transport Equipment • Truck bodies −Nippon Fruehauf Automotive Parts −Nikkeikin Aluminum for Mobility Engineering • Panel system div. −Nikkei Panel System • Landscape engineering div. −Nikkei Engineering (Business Support Administration dept.) −NLM Kambara Complex, Tomakomai Complex −Nikkei Logistics Aluminum foil, powder and paste Aluminum Foil • Foil div. −Toyo Aluminium• Powder and paste div. • Daily necessities div. Supplemental materials 26 Partial reorganization of reportable segments and divisions within business groups
Page 27
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 400 460 460 470 500 460 470 500 560 690 670 630 300 350 400 450 500 550 600 650 700 750 FY24 1Q FY24 2Q FY24 3Q FY24 4Q FY25 1Q F25 2Q F25 3Q F25 4Q FY26 1Q FY26 2Q FY26 3Q FY26 4Q JPY Supplemental materials 27 Trends in the price of aluminum ingot Market price in Japan (JPY) LME (USD) New Standard Price (NSP: ingot price with application of domestic aluminum distribution) 462 428 704 605 2,526.4 2,415.8 3,545.7 3,055.8 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 3,600 3,800 250 300 350 400 450 500 550 600 650 700 750 800 24/4 24/5 24/6 24/7 24/8 24/9 24/10 24/11 24/12 25/1 25/2 25/3 25/4 25/5 25/6 25/7 25/8 25/9 25/10 25/11 25/12 26/1 26/2 26/3 26/4 26/5 26/6 26/7 26/8 26/9 26/10 Aluminum ingot JPY USD*Monthly average
Page 28
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Trends in crude oil prices and exchange rates 28 Supplemental materials 103 108 113 103 97 91 91 86 77 80 82 79 83 75 75 80 87 93 90 84 77 79 81 84 89 84 83 84 78 74 75 73 73 80 78 73 68 64 69 71 69 70 65 64 62 62 68 129 106 103 79 77 89 114 108 55 75 95 115 135 22/4 22/5 22/6 22/7 22/8 22/9 22/10 22/11 22/12 23/1 23/2 23/3 23/4 23/5 23/6 23/7 23/8 23/9 23/10 23/11 23/12 24/1 24/2 24/3 24/4 24/5 24/6 24/7 24/8 24/9 24/10 24/11 24/12 25/1 25/2 25/3 25/4 25/5 25/6 25/7 25/8 25/9 25/10 25/11 25/12 26/1 26/2 26/3 26/4 26/5 26/6 26/7 26/8 26/9 26/10 Dubai crude (USD) USD 135 145 153 151 159 120 130 140 150 160 170 180 22/4 22/7 22/10 23/1 23/4 23/7 23/10 24/1 24/4 24/7 24/10 25/1 25/4 25/7 25/10 26/1 26/4 26/7 26/10 Exchange rates (USD)
Page 29
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 29 Fiscal 2025 Results Fiscal 2026 Forecasts April– Sept. 2026 Results Fiscal 2026 Revised Forecasts Sensitivity to ordinary profit Aluminum ingot (yen/kg) 501 689 671 639 Assuming a 10 yen/kg increase -0.4 billion yen/year Exchange rates (yen/USD) 151 156 159 159 Assuming 10 yen appreciation ±0 Operating profit: +0.7 billion yen/year Non-operating income/loss: -0.7 billion yen/year Dubai crude (USD/BBL) 72 70* 95 101 Assuming a USD10/BBL increase -0.8 billion yen/year *Describe the assumptions used in formulating the FY2026 plan. Supplemental materials Elements and sensitivity
Page 30
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 301 297 293 295 286 287 304 0 50 100 150 200 250 300 350 400 4 7 10 1 4 7 10 1 4 7 10 1 4 7 FY2023 FY2024 FY2025 FY2026 (1,000 tons) 30 Source: Japan Aluminum Association Trends in overall demand for aluminum products in Japan Supplemental materials
Page 31
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. 31 (1,000 tons) April–September 2025 Results April–September 2026 Results Change Nikkei MC Aluminium (secondary alloy ingots) 132.8 152.8 +20.0 Japan 60.9 70.6 +9.7 Overseas 71.9 82.2 +10.3 Nippon Light Metal, sheets (aluminum sheets) 32.1 33.5 +1.4 Nikkeikin Aluminium Core Technology Company (extrusions) 14.2 14.5 +0.3 Supplemental materials Product sales volume
Page 32
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Product sales volume 32 (1,000 tons) Fiscal 2025 Results Fiscal 2026 Forecasts Change Nikkei MC Aluminium (secondary alloy ingots) 272.8 309.9 +37.1 Japan 129.0 143.4 +14.4 Overseas 143.8 166.5 +22.7 Nippon Light Metal, sheets (aluminum sheets) 66.4 69.2 +2.8 Nikkeikin Aluminium Core Technology Company (extrusions) 30.1 29.6 -0.5 Supplemental materials
Page 33
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. (Billions of yen) April–September 2025 Results April–September 2026 Results Net sales Operating profit Ordinary profit Net sales Operating profit Ordinary profit Nippon Light Metal (Non-consolidated) 80.1 3.1 7.6 94.6 7.3 11.3 Toyo Aluminium(Consolidated) 55.7 3.7 3.6 63.5 5.4 5.1 Nikkei MC Aluminium (Consolidated) 54.1 1.5 1.6 89.7 6.4 6.5 Nippon Fruehauf (Consolidated) 37.0 1.1 1.0 37.0 0 -0.2 Nikkeikin Aluminium Core Technology (Consolidated) 17.9 0.1 0.1 20.2 1.2 1.1 Nikkei Panel System (Consolidated) 15.3 1.3 1.4 15.5 0.9 1.0 Nikkeikin Aluminum for Mobility Company 15.0 -0.2 -0.3 17.3 0.9 0.7 33 Supplemental materials Financial results of key companies
Page 34
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. (Billions of yen) Fiscal 2025 Results Fiscal 2026 Forecasts Net sales Operating profit Ordinary profit Net sales Operating profit Ordinary profit Nippon Light Metal (Non-consolidated) 163.6 4.2 8.6 197.5 9.9 13.6 Toyo Aluminium (Consolidated) 113.4 7.7 7.4 129.3 9.5 9.0 Nikkei MC Aluminium (Consolidated) 117.0 3.2 3.6 168.2 8.7 8.9 Nippon Fruehauf (Consolidated) 76.3 2.0 2.0 80.6 1.7 1.5 Nikkeikin Aluminium Core Technology (Consolidated) 36.9 1.5 1.5 41.1 2.0 1.9 Nikkei Panel System (Consolidated) 33.5 3.4 3.7 33.5 2.2 2.4 Nikkeikin Aluminum for Mobility Company 32.0 0 -0.2 36.2 0.9 0.1 34 Supplemental materials Financial results of key companies
Page 35
Copyright Nippon Light Metal Holdings Co.,Ltd All rights Reserved. Notes on this document 1. This document is intended to provide information on the financial results for the fiscal year ended March 31, 2026, and future management strategies, and not to solicit the purchase or sale of the marketable securities issued by the Company. 2. The forward-looking statements, including future trends and earnings estimates, are not historical facts and involve risks and uncertainties, and therefore do not guarantee future performance. Actual financial results may differ materially from the estimates due to various factors, including unpredictable changes in economic conditions. Significant factors that may affect actual financial results include, but are not limited to, the economic climate surrounding the Group, social trends, and changes in the Group’s relative competitiveness in line with the demand trends for the products and services provided by the Group. 3. The matters described in this document reflect the views of the Company at the time of its preparation and are subject to change without prior notice. 4. The Company shall assume no responsibility for any damage resulting from the use of this document.