Financial Results
Briefing for the
Fiscal Year Ended
March 31, 2024
SEIKA CORPORATION(TSE Prime Market: 8061)

1

CONTENTS
01
Financial Summary
and Topic

02

03

Summary of Consolidated
Action to Implement
Financial Results for theManagement that is
Fiscal Year Ended
Conscious of Cost ofMarch 31, 2024
Capital and the Stock Price

04

05

Consolidated Forecast for
the Fiscal Year Ending
March 31, 2025

Progress in the
Implementation of
the Medium-Term
Management Plan

Reference Materials
2

CONTENTS
01
Financial Summary
and Topic

02

03

Summary of Consolidated
Action to Implement
Financial Results for theManagement that is
Fiscal Year Ended
Conscious of Cost ofMarch 31, 2024
Capital and the Stock Price

04

05

Consolidated Forecast for
the Fiscal Year Ending
March 31, 2025

Progress in the
Implementation of
the Medium-Term
Management Plan

Reference Materials
3Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
(Billion yen)Amount of orders
received

Net sales

Transaction value

205.3890.24

FY2022

Operating income

93.31

91.58
86.78

175.74FY2023

FY2022ROE

11.6(-3.8% YoY)

FY2023

FY2022

Free CF*%

2.45

Profitbillion yen(up 4.25 billion yen YoY)

FY2023

4.63

FY2022

PBR

1.06

5.58

FY20235.00

4.48

FY2022

FY2023Full-year dividend

times(As of March 31, 2024)

150

yen/share(up 60 yen YoY)

* A total of cash flows from operating
activities and those from investing activities
4Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
Results for current period
Transaction value: 205.38 billion yen (up 29.64 billion yen year on year)
Net sales: 86.78 billion yen* (down 6.52 billion yen year on year)* For the distributor business, only fees are posted.

 We launched sales distributor operations related to the nuclear power plant equipment of Mitsubishi Heavy Industries,
Ltd. That led to steady growth in business volume.
 Nippon Diaya Valve Co., Ltd. and Tsurumi (Europe) GmbH among our consolidated subsidiaries maintained theirstrong performance.

Operating income: 5.58 billion yen (up 0.94 billion yen YoY) In the energy business, operations related to nuclear power generation launched quickly achieved profitability
although SG&A expenses increased.
 Revenue of consolidated subsidiaries, which stood at 3.60 billion yen, up 1.05 billion yen year on year, brought amajor positive effect.

Profit: 4.48 billion yen (down 0.52 billion yen YoY) The figure showed an effective increase for FY2023, if considering negative goodwill of 1.7 billion yen and a gain on
sales of cross-shareholdings of 0.65 billion yen in FY2022.

Order backlog: 57.26 billion yen (up 4.80 billion yen YoY) The order backlog increased considerably, mainly after a rise in business negotiations related to energy since thelaunch of a base in the Chiba district and after the start of operations handling nuclear power plant equipment.

Dividend: 150 yen (up 60 yen YoY) Based on our policy of increasing shareholder returns and the upward revision of business results, we will pay
dividends of 150 yen per share for FY2023.
5

Highlights for FY2023 [Launch of Nuclear Power Generation Operations]Kansai Electric Power
Mihama Nuclear Power
Plant

Kansai Electric PowerOi Nuclear Power Plant

We provide services for a total of 12
Mitsubishi Heavy Industries' pressurized water
reactors (PWRs) run by Kansai, Shikoku andKyushu Electric Power Companies.
Main operations are regular statutory
inspections to be performed every 13 months
and maintenance services.
We will deal with large deals for replacementof main equipment for extension of theoperation period as well as businessnegotiations related to the nuclear fuel cycleand decommissioning of reactors.

Kansai Electric Power
Takahama Nuclear
Power Plant

Kyushu Electric PowerGenkai Nuclear Power
Plant

83
47

83

Output (10,000kw)

47

Year

118 118
32 31
83
49

83
48

87
39

87
38

118 118
30 26

Shikoku Electric Power
Ikata Nuclear Power Plant

Kyushu Electric Power
Sendai Nuclear Power Plant

89
39

89
29
89
38

An excerpt from a material of the Agency for Natural Resources andEnergy, the Ministry of Economy, Trade and Industry (as of April 19, 2024)
6

Topic for FY2023 [Strengthening of Sustainability Promotion System] Material issues were identified in consideration of the level importance to stakeholders and our philosophy andstrengths.
 We established a framework in which the Sustainable Committee would advance actions to solve key issues and tomonitor them.

Sustainability Committee
Chair: President
Members: Officers in charge (Planning, Sales, and Administration), General Manager of Corporate
Planning Dept.
Monitoring
Theme of material issues

Solving social
issues throughbusiness activities

Reinforcement ofmanagement basefor sustainablegrowthContributing to theglobal environment
for the next
generation

Key issues
 Expansion of clean energy Decarbonization of thermal power
generation
 Initiatives based on TCFD
recommendations

Reports

Subcommittee
in charge

Related SDGs

Subcommittee forenvironmental
measures

Contributing tosustainable growthof industry

 Promotion of energy and power
conservation
 Promotion of DX
 Contributing to the sustainabilityof marine resources

Co-existence andshared prosperity
with stakeholders

 Improvement of employee
engagement
 Promoting diversity
 Coexistence with local
communities

Subcommittee forpeople-oriented
management

Practicing
transparent
governance Strengthen corporate governance Reinforcement of compliancesystem Enhancing data security

Subcommittee formanagement
quality
improvement

7

CONTENTS
01
Financial Summary
and Topic

02

03

Summary of Consolidated
Action to Implement
Financial Results for theManagement that is
Fiscal Year Ended
Conscious of Cost ofMarch 31, 2024
Capital and the Stock Price

04

05

Consolidated Forecast for
the Fiscal Year Ending
March 31, 2025

Progress in the
Implementation of
the Medium-Term
Management Plan

Reference Materials
8Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
FY2022 Results

FY2023 Results

ChangeTransaction value

175.74 billion yen

billion yen+16.9 %Net sales

93.31 billion yen

billion yen-7.0 %

Operating income

4.63 billion yen

billion yen+20.3 %

Ordinary income

6.28 billion yen

billion yen-0.5 %

Profit attributable toowners of parent

5.00 billion yen

205.38
86.78
5.58
6.25
4.48

billion yen-10.2 %FY2022 Results
Amount of orders
received

90.24 billion yen
Results at the beginning of
FY2023

Order backlog

52.46 billion yen

FY2023 Results

91.58

billion yen

FY2023 Results

57.26

billion yen(YoY)Change(YoY)+1.34 billion yen
Change(YoY)+4.80 billion yen
9Scope of Consolidation
Consolidated subsidiaries(domestic and overseas)

Tsurumi(Europe)GmbH

Equity method
affiliate companies

Seika Sangyo GmbHSEIKA MACHINERY, INC.

Shikishimakiki
Corporation

TVE

Seika Sangyo (Thailand)

Meinan Kyodo EnergyCo., Ltd.

Nippon Daiya Valve Co., Ltd.
SEIKA SANGYO (VIETNAM)S TEC Co., Ltd.

Seika Daiya Engine Co., Ltd.
Seika (Shanghai) Co., Ltd.
TEN FEET WRIGHT INC.
Seika Digital Image CORPORATION,

Taiwan Seika Co., Ltd.
(consolidated from FY2024 onwards)

10Balance Sheet for the Fiscal Year Ended March 31, 2024
(Billion yen)

PBR (times)

Marketcapitalization
4.56 billion yen

1.06(Billion yen)

118.54Current
liabilities

40.47
Current
assetsTotal
assets

61.42

Non-current
liabilities

Current
liabilities

Total
assets70.14
Current
assets

95.59
Total
liabilities

0.71

Total
liabilities

75.36
Non-current
liabilities

5.21

44.25

0.64

FY2021

FY2022

FY2023

EPS (yen)
415.8

3.78

79.99

372.5

232
Net assets
Net assets
Noncurrent
assets

35.73

18.56

Noncurrent
assets186.9

AdjustedEPS*

FY2021

FY2022

43.18

22.94
FY2023* The values for adjusted EPS exclude temporary factors, such as negative goodwill.

FY2022

FY202311

Cash Flows(Billion yen)(Billion yen)

FY2022
Income taxes
CF from operating
activities (profit)

CF from investing
activities

CF from financing
activities

Other

FY2023

Change

CF from operating activities

-0.73

2.54

3.27

CF from investing activities

-1.06

-0.08

0.98

CF from financing activities

-4.81

-3.46

1.35

Cash and cash equivalents
at end of period

10.65

10.42

-0.23

Free CF*

-1.79

2.45

4.25

Depreciation

0.49

0.58

0.09

Decrease in borrowings

3.51

2.01

-1.50

Dividend payments

0.90

1.38

0.48

* A total of cash flows from operating activities
and those from investing activities
Cash and cash
equivalents at
end of fiscal year

Cash and cash
equivalents at
end of fiscal year

Operating CF

Investing Financing
CFCF Net cash provided by operating activities stood at 2.54 billion yen,displaying a significant improvement from the previous year.
 Free cash flows of 2.45 billion yen were posted after termination of
the major investment in non-current assets (purchase ofownership of land) by a manufacturing company in the Group.
 Introduction of a cash management system increased theefficiency of cash on hand and led to progress in the repayment ofborrowings.
 The sales of cross-shareholdings decreased from the FY2022
level, but we have announced that we would make our crossshareholdings account for 20% or less of consolidated net assets
and we will be carrying out sales steadily.

Major items in net cash provided by (used in) investing activities
Purchase of shares ofsubsidiaries and associates
Purchase of property, plantand equipment
Sales of investment
securities

-0.59

―

0.59

-2.35

-0.51

1.84

1.46

0.46

-1.00

Other

0.42

-0.03

-0.45

-1.06

-0.08

0.98

Total

12

Waterfall Analysis of Consolidated Profit (FY2022 vs FY2023)
 While SG&A expenses increased mainly because of an upfront investment in the launch of sales distributor
operations for Mitsubishi Heavy Industries, Ltd. to nuclear power plants and soaring personnel expenses, operating
income surged after we were selected as a primary distributor in the energy business and after Group companies'
performance remained buoyant.
 Profit suggests an effective increase if considering the absence of the negative goodwill from the reorganization of
TVE into an equity method affiliate in FY2022.
(Billion yen)

5.00

Actual
value

4.48

3.30

Up 1.18
101th period
negative goodwill
1.7 billion yen (TVE)from the actual value

13

Amount of orders received

FY2021

FY2022

Operating income(Million yen)

FY2023(Million yen)Transaction value

FY2021

FY2022(Million yen)

FY2023

Profit attributable toowners of parent
Earnings per share

FY2021

FY2022

FY2023

FY2021

FY2022

FY2021(Million yen)
(Yen)

Profit attributable to owners of parent
Earnings per share

FY2023

Net sales(Million yen)

FY2022

Total assets/Net assets
Equity ratio
Total assets

FY2021

FY2023(Million yen)

Net assets

Equity ratio

FY2022

FY202314

Business Summary by Segment
for the Fiscal Year Ended March 31, 2024

15

Business Summary by Segment -- At-a-glance Chart(Billion yen)

Net sales

Segment income

FY2022
ResultFY2023ResultEnergy Business

31.25

29.70

-1.55

2.05

1.98

-0.07

Industrial Machinery

34.89

27.60

-7.29

0.00

0.15

+0.15

Product Business

27.16

29.47

+2.31

2.60

3.37

+0.77

Total

93.31

86.78

-6.53

4.66

5.51

+0.85

ChangeFY2022
ResultFY2023ResultChange16

Net Sales by Segment and Segment Income Distribution
Net sales
Energy Business
Product Business

Product Business
Energy Business

27.16

FY2022

31.25

29.47

Energy Business

FY2023 29.70

86.78

93.31
billion yen

billion yen

Industrial Machinery

Industrial Machinery

Industrial Machinery

34.89

27.60

Segment income

Product Business Energy Business

2.60

FY20222.05

Product Business

Energy Business3.37 FY2023

4.66

5.51

billion yen

billion yen

Industrial Machinery

0.00

Net sales and segment income both dropped
slightly. While the launch of sales distributor
operations related to the nuclear power plant
equipment of Mitsubishi Heavy Industries, Ltd.
served as a positive factor, deliveries of large
projects were limited.

1.98

Industrial Machinery

0.15

Since FY2023, part of the division in theindustrial machinery business for the
manufacturing and sale of valves, saleof underwater pumps for Europe and saleof marine engines has been transferred to the
product business. Relationships withsubsidiaries in China and in Southeast Asia
were strengthened and the business wasoperated in collaboration with them. Although
net sales declined, segment income rose after
a turnaround in the performance of subsidiaries
in China that resumed economic activities,
among other factors.

Product BusinessNet sales and segment income rosesignificantly following brisk results of the groupcompany transferred from the industrial
machinery business and solid growth in sales ofgas measurement equipment and ultrasonic
testing (UT) inspections using drones, among
other factors.

17

Order Backlog by Segment(Billion yen)Orderbacklog
FY2023(Initial)

Amount ofordersreceived

Sales

FY2023

FY2023

Order backlog
FY2023

YoY
ChangeYoY
ChangeEnergy Business

19.76

34.34

29.70

24.40

+4.64 +23.4%

Industrial Machinery

20.95

25.95

27.60

19.30

-1.65

Product Business

11.74

31.28

29.47

13.55

+1.81 +15.4%

Total

52.46

91.58

86.78

57.26

+4.80

-7.8%

+9.1%

18

CONTENTS
01
Financial Summary
and Topic

02

03

Summary of Consolidated
Action to Implement
Financial Results for theManagement that is
Fiscal Year Ended
Conscious of Cost ofMarch 31, 2024
Capital and the Stock Price

04

05

Consolidated Forecast for
the Fiscal Year Ending
March 31, 2025

Progress in the
Implementation of
the Medium-Term
Management Plan

Reference Materials
19Action to Implement Management that is Conscious of Costof Capital and the Stock Price

We will revise our ROE target (initially
set at keeping ROE in the 8% range)
upwards to 10.0% and establish an
Specific
organizational structure that effectively
actions
uses the PDCA cycle to achieve thelong-term vision’s earnings target
ahead of schedule.

We will change our shareholder returntarget from the dividend payout ratio tothe total payout ratio. We will aim toachieve a total payout ratio of 45% toincrease shareholder return.

We will aim to reduce cross-held sharesto less than 20% of consolidated net
assets by the end of FY2024 asplanned. We are considering
subsequently reducing them to 10%.

For FY2023, we fulfilled the target after
We changed our shareholder return We expect to achieve a ratio of crossthe upward revision and attainedtarget from the payout ratio of 35% to a shareholdings to our consolidated net
11.6%.We will aim for an even higher
total return ratio of 45%.
assets of less than 20% by the end of
ROE level.
FY2024.
(Yen)

Progress

180

150

20.0%
15.0%

90
65

10.0%

15.4%
10.0%

5.0%

5.6%

7.6%

45

11.6%

25
20

40
25

35

-4.7%

Dividend payout ratio at 35%-5.0%
FY2018-10.0%FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2020

FY2021
Interim

FY2022Year-end

25.68%

90
21.27%

90

55

0.0%

28.13%

28.04%

60

90

8.40
billion yen

8.00
billion yen

12.10

To a level
below 20%

billion yen

7.60
billion yen

Total return ratioat 45% (goal)
FY2023(Plan)FY2024(Forecast)

FY2020
FY2021
FY2022
FY2023
FY2024
Cross-held shares
Cross-held shares as a percentage of consolidated net assets

20

Action to Implement Management that is Conscious of Costof Capital and the Stock Price
We will promote disclosure, dialogue
We will invest 10.00 billion yen in
We plan to introduce a shareholder
with investors, and investor relations to growth opportunities while maintaining
Specific
benefitprogramtoattract
newinvestors
actionshave our initiatives understood by more financial soundness, taking advantage
and increase stock trading.
people.
of our strong balance sheet.

- Introduction of a shareholder benefit
programNumber of shares
held
100 to 299 shares
300 to 499 shares
500 shares or more

Benefits
QUO Card worth 1,000 yen
QUO Card worth 2,000 yen
QUO Card worth 3,000 yen- We held a total of six company
information sessions for private
investors in a year.
- We reinforced IR interviews.
FY2022: 6
FY2023: 24- TurnoverFY2022: average 19.56 million yen/day - Publish Integrated Reports
Progress
FY2023: average 38.45 million yen/day- Announcement of analyst report→96.5% increase
release(Shared Research Inc)
- Number of shareholders
End of FY2022: 7,734 people
End of FY2023: 10,444 people→35.0% increase

Specific initiatives under consideration

We will introduce a remuneration
system for officers as a sound incentive
for the achievement of sustainablegrowth.

We introduced a board incentive plan
(BIP) trust program under which
evaluation would be based on themarket capitalization, ROE and the- We carried out a complete renovation level of implementation of the mediumof our website.
term management plan.
- We stepped up publicity on TV, radio
and magazines.

21

CONTENTS
01
Financial Summary
and Topic

02

03

Summary of Consolidated
Action to Implement
Financial Results for theManagement that is
Fiscal Year Ended
Conscious of Cost ofMarch 31, 2024
Capital and the Stock Price

04

05

Consolidated Forecast for
the Fiscal Year Ending
March 31, 2025

Progress in the
Implementation of
the Medium-Term
Management Plan

Reference Materials
22Consolidated Forecast for the Fiscal Year Ending March 31, 2025

FY2023 Results

FY2024 Forecast

ChangeTransaction value(Note)

205.38 billion yen

233.0 billion yen+13.4 %Net sales

86.78 billion yen

90.0 billion yen+3.7 %

Operating income

5.58 billion yen

5.0 billion yen-10.4 %

Ordinary income

6.25 billion yen

5.4 billion yen-13.7 %

Profit attributable toowners of parent

4.48 billion yen

5.4 billion yen+20.3 %

Consolidated forecast is calculated based on the information available to the Company as of this moment.
The Accounting Standard for Revenue Recognition and other related standards are not applied to the transaction value.

23

Consolidated Forecast for the Fiscal YearEnding March 31, 2025 by Segment(Billion yen)Transaction value

Net sales

FY2023ResultFY2024
Forecast

EnergyBusiness

144.58174.1 +29.52

29.70

33.7

+4.00

1.98

2.0

+0.02

Industrial
Machinery

31.31

27.4

-3.91

27.60

24.9

-2.70

0.15

0.2

+0.05

Product
Business

29.48

31.5

+2.02

29.47

31.5

+2.03

3.37

2.7

-0.67

Total

205.38233.0 +27.63

86.78

90.0

+3.33

5.51

5.0

-0.51

ChangeFY2023ResultFY2024
Forecast

Segment income
ChangeFY2023ResultFY2024
Forecast

Change24

CONTENTS
01
Financial Summary
and Topic

02

03

Summary of Consolidated
Action to Implement
Financial Results for theManagement that is
Fiscal Year Ended
Conscious of Cost ofMarch 31, 2024
Capital and the Stock Price

04

05

Consolidated Forecast for
the Fiscal Year Ending
March 31, 2025

Progress in the
Implementation of
the Medium-Term
Management Plan

Reference Materials
25

Numerical Targets under the Medium-term Management Plan VIORB
2030 Phase 1
We were set to check the level of achievement against the numerical targets for FY2026 at the halfway
point (FY2024), which is after the lapse of two years and to revise them as needed.
Among the results for FY2023, operating income and profit attained their respective targets for the final
fiscal year ahead of schedule. We will reset and announce the targets for FY2026 (final fiscal year of themedium-term management plan).
FY2023ResultNet sales

FY2024
Forecast

FY2026
Initial numericaltargets

86.78 billion yen 90.0 billion yen 110.0 billion yen

Operating income

5.58 billion yen

5.0

billion yen

5.2 billion yen

Ordinary income

6.25 billion yen

5.4

billion yen

5.2 billion yen

Profit attributableto owners ofparent4.48 billion yen

5.4

billion yen

3.5 billion yen

Upwardrevision
being
considered26

Progress in the Implementation of the Medium-Term Management Plan
The VIORB 2030 long-term vision sets a profit target of 4.50 billion yen and an operating income target of 6.50 billion yen for
FY2030. To achieve these earlier, we will accelerate the business strategy in VIORB 2030 Phase 1.
Energy Business[Business strategy]

Segment income(In billion yen)

1.98

 Capture users' needs for

2.0

decarbonization to expand(Forecast)commercial rights.
FY2023

FY2024FY2026

Industrial Machinery[Business strategy]

Segment income(In billion yen)

 Deliver proposals for realizing acircular economy.

0.2

0.15

(Forecast)

FY2023

FY2024

 Endeavor to achieve different
kinds of automation.

FY2026

Product Business
Segment income[Business strategy](In billion yen)

3.37

 Develop cutting-edge

2.7(Forecast)measurement equipment.
 Propose DX items.
 Open the way to the

FY2023

FY2024

Total 5.51

5.0

FY2026semiconductor sector.

27

Cautionary Note: Forward-Looking Statements:
All forward-looking statements contained herein are based on information available to SEIKACORPORATION as of the date hereof and actual results may differ materially from those in theforward-looking statements due to unforeseeable factors or uncertainties.
Figures in billions of yen or millions of yen presented herein are rounded down to the nearest
billion yen or to the nearest million yen respectively and numbers may not add up due to rounding.

IR Contact
Corporate Planning Dept., Tel: +81-3-5221-7117
E-mail: SMB076@jp.seika.com

28

Reference Materials

29Reference Materials
1.

Company Profile

2.

History of SEIKA CORPORATION

3.

Domestic and Overseas Locations

4.

Consolidated Subsidiaries and Affiliated Companies(Domestic and Overseas)

5.

Introduction to Each Business

6.

Performance Trend

7.

Changes in Consolidated Financial Results

8.

Trend of Management Indicators

9.

Major IR Topics for FY2023

10. Climate Change Initiatives
11. Social Contribution Activities in Recent Years30

1. Company Profile
Trading nameHead office

Shin-Tokyo Bldg 3F, 3-1, Marunouchi 3-chome,
Chiyoda-ku, Tokyo 100-0005

Establishment

October 1, 1947

Representative

Akihiko Sakurai, President

Capital6,728 million yen

Number of employees

Consolidated: 1,040 / Non-consolidated: 346 (As of March 31, 2024)

Core business

Plants, machinery and equipment, environmental protection equipment, sale,
import and export of electronic information system equipment

SEIKA CORPORATION's
locations

29 offices in Japan, including head office, Osaka branch, Fukuoka branch andHiroshima branch
3 offices overseas including Taipei branch and Seoul branch

The SEIKA Group
locations in Japan andoverseas

11 affiliated companies in Japan and 17 affiliated companies overseas
124 bases in total (99 in Japan and 25 overseas)

Corporate Philosophy

Our philosophy is to Contribute to Society
Through the Expansion of Business.

Head office:Shin-Tokyo Bldg., Marunouchi

31

2. History of SEIKA CORPORATION (1)October 1947

Established in Moji shi (currently Moji ku , Kitakyushu shi ) by company officials of the former Mitsubishi
Corporation, which was dissolved before the establishment, with capital of 195,000 yen.

From 1948 to 1951 Established offices throughout Japan (Nagasaki, Fukuoka, Osaka, Hiroshima, Tokyo, Takamatsu)

October 1961

Listed shares on the First Section of the Tokyo Stock Exchange

January 1974

Established the subsidiary Seika Sangyo GmbH in Germany (Dusseldorf)

May 1983

Opened the Taipei Branch in Taiwan (Taipei)

November 1983

Established Tsurumi (Europe) GmbH, a joint venture with Tsurumi Manufacturing Co., Ltd. in Germany

April 1994

Established the subsidiary Seika Machinery Inc., USA (Los Angeles)

July 2000

Opened the Seoul Branch in Korea (Seoul)August 2001

Changed registered head office from Kokurakita ku Kitakyushu to Chiyoda ku , Tokyo

January 2004

Established the subsidiary Seika Shanghai Co.,Ltd in China (Shanghai)

April 2005

Acquired 100% ownership of Nippon Daiya Valve Co., Ltd.

32

2. History of SEIKA CORPORATION (2)April 2012

Established Seika Digital Image CORPORATION

December 2012

Established the subsidiary Seika Sangyo (Thailand) Co., Ltd. in Thailand (Bangkok)

May 2015

Established Meinan Kyodo Energy

March 2016

Acquired 100% ownership of Shikishimakiki Corporation

January 2019

Established the subsidiary SEIKA SANGYO (VIETNAM) COMPANY LIMITED in Vietnam (Ho Chi Minh City)

October 2020

Established Seika Daiya Engine Co., Ltd.

April 2022

Transferred to the TSE Prime market

June 2022

Shifted from a company with a board of company auditors to a company with an audit and supervisory committee

March 2023

Acquired shares in TVE Co., Ltd. (making it an equity method company)

November 2023

Established Taiwan Seika Co., Ltd. in Taiwan (Taipei)

33

３．国内拠点

34

３．海外拠点35

４．連結子会社・関連会社（国内）
Nippon Daiya Valve Co., Ltd.
Tokyo, Osaka, Nagoya, Okayama, Kita Kyushu
Seika Digital Image CORPORATION, Tokyo
Shikishimakiki Corporation
Head Office in Sapporo and ten other offices in
Hokkaido
Seika Daiya Engine Co., Ltd.
Tokyo Head Office
Tohoku, Kanto, Chubu, Kinki, Kyushu areas
25 offices nationwide
Shipyard Tanaka Co., Ltd. Matsuura
MEINAN KYODO ENERGY Co., Ltd., Chita
S TEC Co., Ltd.
Tokyo, Osaka, Tsukuba
TEN FEET WRIGHT INC.
Tokyo, Osaka, Takamatsu, Fukuoka
JAPAN EJECTOR ENGINEERING Co.
Osaka (head office), Wakayama
TVE
Hyogo (head office), Tokyo, and 15 other locations
SEIWA POLYMER Tsukuba

36

4. Consolidated Subsidiaries and Affiliated Companies (Overseas)37

5. Introduction to Each Business (Energy Business)
Energy is an indispensable part of industry,life, culture, and all social activities.
In the Energy Business, we provide support in a range of aspects to ensure thatpower generation facilities responsible for creating energy, which is essential forall social activities, operate without delay. Our main activities are businessnegotiations related to the new construction of domestic power plants as well as
regular inspections of the plants and any necessary repair work. As a sales
distributor of Mitsubishi Heavy Industries, Ltd., we provide equipment andmaintenance services for in-house power generating facilities of major clientcompanies and thermal and nuclear power plants of electric power companies inWest Japan.
We support the stable operation of power plants by delivering power generationequipment, such as boilers and turbines, and equipment for environmental
protection including wastewater treatment equipment, as well as byproviding after-sales maintenance services for the equipment. As anintermediary between each customer and manufacturer, we coordinate pricing,delivery schedules, and other aspects, thus playing a crucial role in advancing
each business negotiation smoothly. In recent years, we have also been
focusing on the fuel conversion and renewable energy market, which
contributes to decarbonization.

Chemicals plant

Power plant

Main products and services Power generating equipment and related equipment for thermal power plants
 Power generating equipment and related equipment for nuclear power plants
 Equipment related to renewable energy, including hydropower and biomass power
generation
 Regular inspections and after-sales maintenance services for each power generation
facility and plant Security equipment, utility equipment, and other peripheral equipment of power plants
 Driving initiatives related to decarbonization of thermal power generation with the use ofammonia or hydrogen or mixed combustion with ammonia or hydrogen, as well as thoserelated to clean energy

Power generation equipment38

5. Introduction to Each Business (Industrial Machinery)High value-added products that support affluent
and comfortable living environments
In the Industrial Machinery Business, we engage in sales andmaintenance of production equipment, logistics equipment, and otherequipment for a wide range of industrial fields including fiber, film, andfood and beverages. Reducing the impact on the global environment is
an important task for business management at all companies. In thedomain of industrial machinery, issues and themes faced by companies
differ among industries, including the promotion of resource
conservation and the reduction of disposable plastics, while the shift toenergy efficiency is the premise.
In this business environment, members of the sales team in thissegment, who are knowledgeable about each industry, provide
machines and equipment for domestic and overseas client
manufacturers and the optimum solutions that cater to customer needs.

Film-related equipment

Main products and services
 Automation and labor-saving equipment for factory processes
 Automated storage/retrieval systems in factories
 Remote monitoring equipment utilizing AI and robots, etc.
 Freezers and air-conditioning equipment using next-generation
refrigerant (CO2 and ammonia)
 Equipment for development at food/pharmaceutical laboratory plants
 Products related to circular economy, including recycled fiber

Automated storage/retrieval systems in factories

39

5. Introduction to Each Business (Product Business)

Unique products that are niche and competitive
The Product Business consists of businesses related to measuring
equipment and electronic equipment at Seika Corporation and Group
companies specializing in valves, underwater pumps, marine engines,
precision analysis equipment, and other products.
We have sole distribution rights over many of the products that we
handle. They are widely offered in Japan and other countries, having
established a firm position and brand as products from the Seika
Group. We develop and manufacture some products, including valves,
ourselves. We are expanding this business by developing a system
for total support for the products, including maintenance services andseminars, instead of only selling them.

Main products and services Marine engines
 Diaphragm valves and various other valves Plant equipment inspection using UT drones
 Laser-type gas analyzers, temperature data loggers, and othermeasuring equipment
 Underwater pumps for construction work and wastewater
treatment equipment
 Particle image velocimetry systems
 Diffuser tubes for wastewater treatment equipment

Nippon Daiya Valve Co., Ltd.
Diaphragm valves

Seika Daiya Engine Co., Ltd.
Marine engines

Tsurumi (Europe) GmbH Group
Water pumps40

6. Changes in Consolidated Financial Results(Consolidated Transaction Value and Operating Income)Transaction value

Transaction value
Operating income

Operating income(Billion yen)

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
148.31 156.59 161.26 123.39 120.24 135.72 136.67 126.49 132.03 127.10 150.74 165.59 157.15 140.68 136.27 134.26 175.74 205.38
3.63
3.23
3.75
1.40
2.56
3.06
2.82
2.19
3.40
2.17
3.04
2.59
2.11
2.80
2.58
3.82
4.63
5.58

* The Accounting Standard for Revenue Recognition and other related standards are not applied to transaction value.

41

7. Changes in Consolidated Financial Results(Billion yen)

Consolidated Net Sales

Consolidated Operating Income

93.31

85.30

86.78

5.58

71.93

4.63
3.82
40.45

33.73

40.04

40.45

2.58
0.95

FY2020

FY2021
Net sales – 1H

FY2022

FY2023

Net sales – Full Year

* After adoption of Accounting Standard on Revenue Recognition and the implementation guidance

FY20201.44

FY2021

FY2022

Operating income – 1H

5.00

3.87

2.72
1.21

FY2020

FY2021

FY2022

Ordinary income – 1H

FY2023

Ordinary income – Full Year

4.48

2.24

2.24

1.09

Operating income – Full Year

6.25

6.28

1.31

FY2023

Consolidated profit attributable to ownersof parent

Consolidated ordinary income

2.90

2.05

1.30

1.46
0.53

0.69

0.84

FY2020

FY2021

FY2022

FY2023

Profit attributable to owners of parent – 1H
Profit attributable to owners of parent – Full Year42

8. Trend of Management Indicators

Return on Equity (ROE)(%)

Price Book-value Ratio (PBR)(Times)

1.06

15.4
11.6

0.65

0.64

FY2020

FY2021

0.71

10.0
7.6

FY2020

FY2021

FY2022

FY2023

Price Earnings Ratio (PER)(Times)

FY2022

Earnings Per Share (EPS)(Yen)

415.798.6
9.9
4.9

FY2023372.46221.877.0
186.85

FY2020

FY2021

FY2022

FY2023

FY2020

FY2021

FY2022

FY202343

9. Major IR Topics for FY2023
List of Topics
Apr 1

Starts operation as a sales distributor for the nuclear power plant equipment of Mitsubishi Heavy Industries, Ltd. (MHI)

May 26

Formulates Medium-term Management Plan VIORB 2030 Phase 1

Jul 3

Sustainability Committee is established.

Jul 28The first company information session for private investors is held. (In FY2023, six such sessions are held.)

Aug 1

A capital and business alliance agreement signed between Seika Daiya Engine Co., Ltd., a Seika Group company, and Eight
Knot Inc.

Aug 10Material issues are identified.

Sep 29A council for developing seaweed beds is established by Seika Daiya Engine Co., Ltd.

Oct 25

Announcement of analyst report release by Shared Research Inc

Nov 10

Action to implement management that is conscious of cost of capital and stock price is published.

Nov 10Establishment of Taiwan Seika Co., Ltd. (begins operating on January 1, 2024)

Nov 17

Publishes Integrated Report

Dec 15

Renatech Co., Ltd., in which the SDGs Support Fund invests under the VIORB 2030 long-term vision, wins a future creation
award in the 38th Kanagawa High-Tech Grand Prix (2023).

Dec 27

Akihiko Sakurai, President, appears in a program on Radio NIKKEI. (He appears twice in FY2023.)

Jan 11, 2024

Offers a disaster relief donation in the wake of the Noto Peninsula Earthquake through the Japanese Red Cross Society.

Jan 31

Seika Daiya Engine Co., Ltd., a Seika Group company, signs an agreement for transfer of shares of Shipyard Tanaka Co., Ltd.
44

10. Climate Change Initiatives[Promotion of green innovation-related products]
We are working to introduce and spread green-innovation-related products(*) to help customers reduce greenhouse gas
emissions. Our transaction results for FY2023 are shown below.

Sales of green
innovation-related
products

FY2021

FY2022

FY2023

FY2026
Target

FY2030Target84.3 billion yen

96.4 billion yen

150.0 billion yen

180.0 billion yen

200.0 billion yen[Indicator and target]
We have been monitoring CO2 emissions from SEIKA CORPORATION only

The Seika Group's GHG emissions for FY2023(in t-CO2)

since FY2020. In FY2023, we started monitoring Scope 1 and Scope 2*1
greenhouse gas (GHG) emissions including those from four major
companies in the Group*2. On the basis of data collected, we will takeactions for cutting emissions and set a reduction target.

Scope 1

1,006

Scope 2989

Scope 3 (partly*3)

32

In addition to that, we will consider monitoring Scope 3 GHG emissions in
the whole Group while sharing information with business partners in the
supply chain.
*1 Scope 1: Direct GHG emissions produced by our own business (fuel combustion, industrial process)Scope 2: Indirect emissions related to the use of electricity, heat, and steam provided by other companies*2 Nippon Daiya Valve Co., Ltd., SHIKISHIMAKIKI CORPORATION, Seika Daiya Engine Co., Ltd. andTsurumi (Europe) GmbH

Total

2,027

*3 CO2-equivalent emissions from treatment of general waste45

11. Social Contribution Activities in Recent Years[Activities to revitalize and support local communities]
 Disaster relief donation for the Noto Peninsula Earthquake through the Japanese Red Cross Society.
We donated calendars andnotebooks.
We boxed them carefully toprevent damage.

 Donation to the red feather community chest Disaster relief donation through the Japanese Red Cross Society
 Donation to Kainaniji Ikueikai
 Donation of surplus calendars and notebooks (Foodbank Tama) Donation of disaster supplies (FUKUSHIMA Inochi-no Mizu, an NPO) Participation in Marunouchi Kirapika Sakusen (neighborhood clean up)
 Support for employees' participation in volunteer activities

We participated in
Marunouchi Kirapika Sakusen(neighborhood cleanup).

[Humanitarian aid activities]
 Donation to A Dream A Day in Tokyo, activities for supporting children with intractable diseases
 Support for Furugi de Vaccine
 Collection of PET-bottle caps
(Japan Committee, Vaccines for the World’s Children) Collection and donation of used stamps(Japan Overseas Christian Medical Cooperative Service)
We donated used stamps.
As many as three cardboard boxesof used stamps were collected.
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