Nippon Light Metal Holdings Company (5703) Investor presentation summary

Review of previous medium-term plan (2023)

• Achieved three years of earnings growth and improved capital efficiency, but missed targets due to deferred demand in semiconductors and BEVs.

• Shifted performance indicator from ROCE to ROIC to enhance corporate value.

• Dividend payout ratio maintained above 30%, with annual dividends increasing to 100 yen per share.

Long-term vision and strategic direction (2035 Vision)

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

• Emphasizes decarbonization, recycling, and green aluminum to address climate change and market needs.

• Targets ROIC of 10% or higher by 2035, with ordinary profit exceeding 30 billion yen.

2026 Medium-term plan (FY2026–FY2028)

• Focuses on creating new value in next-generation growth markets such as semiconductors, BEVs, and recycling.

• Prioritizes process transformation, group integration, and efficient resource allocation.

• Sheet & Extrusion and Aluminum Foil business groups to lead near-term growth; Metal and Automotive Parts to drive long-term expansion.

• Financial targets include establishing a stable earnings base above 30 billion yen in ordinary profit and achieving ROIC of 8% or more.