INTEGRATEDREPORT 2023
SEIKA CORPORATIONCorporate Philosophy

Our philosophy is to Contribute to Society Through the Expansion of Business.
No matter how society changes,
the Group is committed to conducting business thatrewards all stakeholders andbeing a Valuable Business that contributes to the realization of an affluent society.

Corporate motto

目次
Outline Vision3

Corporate History

5

Business Model

7

Financial & Non-Financial Highlights

1.Being trustworthy is a priceless asset.
2.To always have a high appreciation of the significance of existence isthe basis of the business activities of a trading company.

Values and Strategies of Seika Corporation

3.Fast and accurate information activities and effective responses win everything.

9

Top Message

4.To make decisions and handle things using objective consideration andpursue necessity and rationality without being influenced by intuition.

15

Our vision

17

Long-Term Management Vision
Medium-Term Management Plan

5.To be driven by a pioneering spirit, be challenged,
and be proud to overcome all difficulties, barriers, and turbulent times.

Our purpose

supporting the sustainable generation of energy
and industrial activities in harmony
with the global environment.

21

Energy Business23

Industrial Machinery Business

25

Product Business

Sustainability Strategy and Governance
Sustainability Management

28

Materiality

Group Policy

29

Environmental Initiatives

Strive for excellence and foster a sustainable
society with corporate integrity.

31

Environmental Business

33

Human Resource

37

List of Directors

39

Corporate Governance

43

Compliance

44

Risk Management

Comply with laws and act with ethicalstandards to gain the trust of society.

Reporting period
The report covers information related to business activities
for fiscal year 2022 (April 1, 2022, to March 31, 2023). However,some content includes information from the past and after
April 1, 2023.

Scope of report
The report includes Seika Corporation, and its Group
companies. For matters that have a different reporting scope,
the applicable scope is clearly indicated.

Notes on forward-looking statements
The forward-looking statements in this report, including
earnings forecasts, are based on the Company’s judgment
at the time of booklet creation. Actual results may vary in
the future, and the Company will not be responsible for any
damage incurred as a result of the use of the information inthis report by investors.

Tool Map
Financialinformation

Group Mission

45

Summary of Financial Data Over 11 Years

Create a fulfilling society together.

47

Company Outline

48

Shares Information

Non-Financial
information

INTEGRATED REPORT
Securities Report /Quarterly
Securities Report
Consolidated
Financial Results

Data section

1

This report is the first integrated report for the Group, createdto help stakeholders, including investors and shareholders,
understand the Company’s medium to long-term growthpotential and corporate value enhancement, throughnon-financial information including initiatives related
to environment, society, and governance, in addition tofinancial information such as management performance andstrategies. For the publication of this report, we referred to theInternational <IR> Framework of the International Integrated
Reporting Council (IIRC, now part of the IFRS Foundation),and the Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogue for Collaborative Value Creationby the Ministry of Economy, Trade and Industry.

Strategy by Segment

27

Code of Conduct

Editorial policy

Financial Results
Briefing

Corporate
Governance Report

Investors’
Note

FACT BOOK
Corporate Page

2

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Outline VisionCorporate history
Seika Corporation celebrated its 75th anniversary on October 1, 2022. With tradition and transformation as the dual pillarsof our business, we aim to achieve further leaps under the Medium-Term Management Plan “VIORB2030 Phase 1,” whichstarted this fiscal year.

Founding Creation ofbusiness foundation

Development alongsidehigh economic growth

Expansion of the Group andstrengthening of management structureManagement towards a carbon-neutral society

1947-

1970-

1990-

2010-

The coal car that laid the foundation at inception

1974 Labor union formation

1997 50th anniversary

2016 Acquisition of Shikishimakiki as a subsidiary1983 Relocation of the Head Office to Tokyo

2005 Acquisition of Nippon Daiya Valve as a subsidiary2020 Establishment of Seika Daiya Engine
Number of
employees

Sales(In million yen)(people)250,000

1,000

1954 Establishment ofan overseas representative office in Germany

200,000

1986 Business expansion into the United States

800

2023 Start of nuclear power generation-related
equipment agent business

150,000

600

100,000

400

1961 Listed on the First Section of
the Tokyo Stock Exchange

Sales (Million)
Sales (In million yen, after applying new revenue recognition standards)

50,000200

Number of Group employees (people)

001948 1950

Transitionsof Seika
Corporation

Socialtrends

3

1960

1970

Following the dissolution of the conglomerates, themachinery sales unit of Mitsubishi Corporation
established a base in Moji, starting the business withcoal car sales in the Kyushu region. We began handlingpower plant-related equipment, supporting post-war
reconstruction. We also started the overseas expansion
early. Our presence in Düsseldorf, which is now home toone of the largest Japanese communities in Europe, wasvery unique as a trading company at that time. It served
as a bridge for local technology and facilitated imports.

1980

In response to the rapid growth in demand for electric
power, we deepened our power generation-related
equipment business. We expanded into machinery
businesses for the chemical industry, plants, and food,growing alongside the increase in capital investment
demand in each industry. We relocated the Head
Office to Tokyo and established offices in Europe,
North America, and Taipei, laying the foundation for
the global structure of the Seika Corporation Group
that continues to this day.

1950

1964

1973

Outbreak of
the Korean War

Tokyo Olympics

First oil crisis

1990

2000

2010

We developed business in various areas, centered on
China and Asia. We also worked to expand businessareas, including exports of textile machinery andcutting-edge equipment, as well as our own
manufacturing operations. We began formulating a
Medium-Term Management Plan. While aiming tocontinuously build our business and maximize
corporate value, a clear policy of respecting employees
was established, as we strove to create a “goodcompany” as a global trading company.

1989

1991

Era changed
Burst ofto Heisei the economic
bubble20202023

We rolled out a medium to long-term management planand growth strategy with environment as a theme, as a
general trading company in energy and machinery.
Promoted clean energy such as nuclear power generation,
biomass power generation, and hydropower generation
Expanded the sale of equipment that reduces environmental
impact, such as resource conservation and automation
Explored new businesses such as drones and ultra-lightweightsolar panels

2008

2011

2019

2020

Globalfinancial crisis

Great East Japan
Earthquake

Era changed
to Reiwa

Spread of
COVID-194

Outline Vision

Business Model

Trading based on strong trust relationships with major business partners
Development of unique products with high competitiveness in niche markets

Corporation

Sustainability Strategy and Governance

Data Section

Industrial Machinery

Product

Segment overview (FY2022 results)

The Company’s business, which started with the sale of mining equipment, expanded into various fields while meetingthe needs of customers.
While valuing the know-how and business foundation built over 75 years since our establishment, and the relationships
with customers, we accurately capture the changes of the times, provide value to society, and aim for our own sustainablegrowth.

Strengthsof Seika

Values and Strategies of Seika Corporation

Ability to propose products to a wide range of industries leveraging diverse
manufacturer relationships

EnergyThermal, nuclear,
Functional materials,
renewable energy, andfood and beverage production
other energy generation-related
equipment,
equipment, etc.
plant machinery, etc.

Main products
and services

Element machinery,automation devices,semiconductors,
specialized measurementrelated products, etc.

Sales (billion yen)

31.3

62.0

Operating profit (billion yen)

2.1

2.6

Number of affiliates(companies)

1

8

19

Number of employees (people)

123

173

650

nov

atio

n

Value Chain

nes

s in

Power generation equipment sales agent business
Serving as a pipeline supporting energy infrastructure

nue
no

f ne

wr

Diversification of revenue

atio

S erving as a pipeline between electric power companies and manufacturers, coordinating contracts, pricing,and delivery for smooth negotiations and planningCre

Expansion of markets
in both business areas
Business investment
and regions
and M&A
Creation ofbusiness pillars

Globalizationof trading

Industrial Machinery
Business

Materiality

Evolution of trading
and solutiondelivery formats

Stable operationand expansion of
infrastructurebusiness

The Company

Power plant

negotiation and coordination

Stable earnings base based on years of know-how

Rolling out our trading business anchored by strong relationships with business partners
P roviding maximum added value to business partners by utilizing trading company functions such as
product proposals including pre- and post-processing, providing information, and leveraging sales networks
for horizontal deployment
Procurement

Logistics

Storage

Sales (installation)

P.17-18

Strengthening business resilience and solidifying revenue structure
Corporate Governance

Sales and Service

negotiation and coordination

Trading business

EnergyBusiness

P.28

Long-Term Management Vision
VIORB 2030

commission

e 1”
Phas

Product
Business

Corporate
Philosophy
Our Philosophy
and Motto

Manufacture

M
a

030
RB2
VIO

Development oforiginal products inGroup companies

Rolling out new construction and after-service operation for thermal and nuclear power plants in Japan

“
lan
tP
en
m
ge
na

Expansion of top niche
commercial products

eve

sou

rce

s an

db

usi

Me
diu
mTe
rm

Comprehensive equipment service businessTotal support that also serves manufacturer functionsW e serve as a comprehensive contact point in Japan, not only selling equipment nationwide utilizing
our unique network, centered around products we manufacture and those for which we hold exclusive agent rights,
but also handling subsequent maintenance(Manufacturing and processing)

Procurement

Logistics

Storage

Sales (installation)

Maintenance

P.17-185

6

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Financial & Non-Financial Highlights
Financial performance

Non-Financial information

Transaction value/Sales*(million yen)Transaction value

Operating profit (million yen)/
Operating profit ratio/EBITDA margin (%)

Sales

Operating profit

157,145

Operating profit ratio

Female employee ratio/Female manager ratio/
Female new graduate hiring ratio (%)

EBITDA margin

4,636

175,741

157,145
140,677

93,311

2,581

5.59

5.16

2,118
2.33

1.99

1.89

FY2019FY20201.75
1.34
FY2018FY2019FY2020

FY2021

FY2022FY2018FY2021

FY2022

25.3

25.8

22.2

16.7

26.7

Total training and development costs

2,800

28.6
1,935

1,880

25.0

4.96

4.48
2.54

Total hours of training

2,629
27.1

2,809
85,307

Female employee ratio
Female manager ratio 40.0
Female new graduate hiring ratio

3,824

140,677
136,273
136,273
134,261

Total hours of training (hours) /Total training and development costs (10,000 yen)

1,400
1,133

3.7

4.3

4.2

3.9

FY2018FY2019FY2020

FY2021

5.9

FY2022

FY2020

FY2021

FY2022*The “Accounting Standard for Revenue Recognition” and other standards have been applied from FY2021. Therefore, the figures are different from those before FY2020.

Total assets/liabilities (million yen)
Asset

Debt

Profit per share/Annual dividend (yen)/Dividend ratio (%)
Profit per share

104,865

92,668Dividend ratio

415.7997,45885,742
66,757

Annual dividend per share

67,56873,764

79,99035.9

45

CO2 emissions per transaction value

CO2 emissions per sales

Satisfied / the Company

186.85

20.3
45

45

70.5

45.6

47.2

FY2020

FY2021

79.0

266
2.85

90

65

3.76

4.13

21.6

Satisfied / Industry average

70.6

297

34.8

125.5044,254CO2 emissions

Employee satisfaction survey(the Company and industry average) (%)

321

221.8756,675CO2 emissions (t) /CO2 emissions per transaction value /CO2 emissions per sales (kg/million yen)

50.5

2.39

2.18

1.51
(100.73)

FY2018FY2019FY2020

FY2021

FY2022FY2018FY2019FY2020

FY2021

FY2022

FY2020

FY2021

FY2022

FY2022*CO2 emissions per sales for FY2020 are calculated based on net sales of 71,933 million yen, retrospectively applying the “Accounting Standard for Revenue Recognition.”*The scope of GHG emissions from FY2020 to FY2022 only includes Seika Corporation.

Capital and business investment/Depreciation (million yen)
Capital and business investment

Cash flows/Balance at the end of the period (million yen)
Net cash provided by operating activities
Cash flows from financing activities

Depreciation

Paid leave utilization rate (%)

Premium Friday utilization rate (%)

Cash flows from investing activities
Closing balance of cash and cash equivalents

67.0

17,00011,506

13,346
3,400

422

544

365

437

14,035
4,137

(448)

(614)

(1,127)

(525)

(559)

1,125
(229)
(1,211)(1,566)7FY2019FY2020

FY2021

49.4

29.0

FY2022

27.0

27.0

28.0

FY2020

FY2021

FY202221.0(731)(1,068)(1,903)(3,304)FY2020

FY2021(2,441)FY2018

46.9

59.0

491
(734)

(427)

4,971

56.4

10,653(4,816)FY2018FY2019FY2022FY2018FY2019FY2020

FY2021

FY2022FY2018FY20198

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Values and Strategies of Seika Corporation

Top Message

We support the industry with the environment
as a theme in the energy andindustrial infrastructure domains
to achieve both a contribution toa sustainable society and business growth
Akihiko Sakurai
Representative Director
President and CEO

On the publication of the integrated report
In FY2022, coinciding with 75th anniversary of the Company’s founding, we formulated a new Long-Term
Management Vision “VIORB 2030.” In the following FY2023, we initiated a Medium-Term Management Plan based on
this Long-Term Management Vision and started nuclear power-related operations, one of our main businesses going
forward. On the occasion that can be called a turning point in our growth strategy towards the Company’s sustainablegrowth, we decided to publish our first integrated report out of our desire to present an overall picture of the values
and new strategies of the Group.
Going forward, we aim to continuously enhance both financial and non-financial information, and by carefullycommunicating to stakeholders how the Group creates new value and “contributes to society through the expansionof business,” we aim to utilize the integrated report as a communication tool to foster constructive dialogue witheveryone.

Our history

Our “founding spirit,” which we return to in times of difficulty and“three strengths” built up over 75 years of business activities
The Company was established in 1947 by sevenvolunteers from the machinery division of the former
Mitsubishi Corporation, following the dissolution of
conglomerates in the period after World War II. The three
origins of the Japanese Kanji characters contained in
the Company’s name are: (1) The essence of commerce:mastering the essence of business. Earning profits foroneself while providing convenience for others. (2)Leader of the west: aiming to become the leader ofwestern Japan. (3) Flower: being useful when trade with
China flourishes in the future.
Although initially our main business was the sale ofmachinery for coal mines, we later entered the energy

9business, handling power generation equipment. By
responding to domestic needs during the reconstruction
period, we continued our business expansion, and in
1961, we were listed on the First Section of the Tokyo
Stock Exchange (current Prime Market). Immediately
after that, in 1964, we faced the first crisis since ourfounding when the sales agent contracts with Mitsubishi
Heavy Industries, an important business partner, wereconsolidated under Mitsubishi Corporation, resulting in
the termination of our agent contract. However, underthe belief since the Company’s founding that if wehave the determination to endure hardships and fightthrough, a way forward will open up, the management10Outline Visionteam at that time succeeded in gaining its status as a
subagent for Mitsubishi Corporation, thus avoiding theworst-case scenario of losing our commercial rights.
Afterward, we have faced several events that put oursurvival into question, but I believe that the reason the
Company has been able to overcome those events andcontinue growing to this extent is because the strong
desire and spirit of the founders, demonstrated during
times of crisis, have been inherited across generations
and put into practice internally.
Since the 1970s, alongside strengthening our domestic
base, we accelerated globalization and expanded oursales channels to new business domains of industrial
machinery such as chemicals, synthetic fibers, food, andelectronics, in addition to the energy business, growing
as a general trading company for machineries.
Today, with the strengths developed through years ofbusiness operations, such as “sales capabilities close to
the field,”“high expertise in each business,” and “a networkof 103 domestic and 26 overseas business locations (asof April 2023),” we are recognized as an indispensablebusiness partner in industry.

Our Purpose and Long-Term Management Vision

Supporting the sustainable generation of energy and industrial activities inharmony with the global environment
Since its founding, the Group has expanded its businessby providing society with value suitable for the times,
based on its corporate philosophy, “Contribute to Society
Through the Expansion of Business.”
Recently, with the growing social awareness of theenvironment, the business environment surrounding
the Group is rapidly changing, as evidenced by theincreasing demand for sustainability considerations
in business operations and capital investments. Thesechanges are naturally beginning to have a significant
impact on the Group’s business development as well.
Looking towards 2030, we have strongly recognized

the need to look further ahead and reconsider what wemust do for our value to be acknowledged as a necessarypresence in society, and where to find the significanceof the Group’s existence, from a viewpoint of our original
founding principles.
Starting with discussions among around six membersof management, including myself, from 2020, and after
extensive discussions, we reaffirmed that all businesses
the Group operates are linked to the environment, andthat especially in the energy and machinery industries,
which the Group targets, many customers are facing newchallenges such as carbon neutrality and the realization

Values and Strategies of Seika Corporationof resource-recycling society. That this is why the valueof the Group’s existence lies in the development ofbusinesses with environment as its theme.
As a corporate group with strengths in the energy andindustrial infrastructure fields, we believe that supporting
the industrial sector by providing green innovation-relatedcommercial products will fulfill our social responsibilityof contributing to a sustainable global environment andeventually enhance the corporate value of the Group.
Based on this belief, we defined our purpose as “supporting
the sustainable generation of energy and industrial
activities in harmony with the global environment.”
For the Group, which has always considered supporting
the fulfillment of power generation infrastructure inindustry as a crucial mission since its founding, how it can

Sustainability Strategy and Governance

Data Section

support the sustainable “generation of energy in harmony
with the global environment” in a decarbonizing society
with increasing regulations on thermal power generation
is a significant challenge for both its responsibility tosociety and its own sustainable growth. As part of ourdecarbonization efforts, we are promoting a shift toammonia and hydrogen co-firing power generation in
our conventional mainstay business of thermal power
generation. In April 2023, we started agent operations
for nuclear power generation facilities, a symbol ofdecarbonization. Together with the hydroelectric andbiomass power generation businesses we are alreadyengaged in, we will strengthen our response to the
expansion of clean energy in a wide range of social andindustrial fields.

Long-Term Management Vision “VIORB 2030”
Achieving a balance between the resolution of social issues and business growthin four priority business domains
We formulated the Long-Term Management Vision “VIORB
2030” in April 2022 to chart a course for contributing to
the realization of a sustainable society and putting our
purpose into practice. We will introduce new products
and services in key areas that contribute to “supporting
the sustainable generation of energy and industrial
activities in harmony with the global environment.”
Internally, we will strive to improve capital efficiency andstrengthen human resources. Through these efforts, by
the final year of FY2030, we aim to achieve a consolidated
net profit of 4.5 billion yen and transaction value related
to green innovation* of 200 billion yen as the value wehave provided to society.
*S ales of equipment, devices, products, etc., with functions or performance that havea positive impact on or consider the environment

Review of previous Medium-Term Management Plan

“Re-SEIKA 2023,” with its goals of reform, re-challenge, recovery,
and restart, achieved its numerical targets
The previous Medium-Term Management Plan “Re-SEIKA
2023,” which ended in FY2022, aimed for a restart andrecovery from a negative performance in FY2019, and weworked on the selection and concentration of resources
and improvement of operational efficiency. As a result,
we have achieved the set numerical targets in terms ofoperating profit and consolidated net profit.
In terms of business operation, we made progress in
restructuring unprofitable businesses and renewing
our business portfolio with new investments, and wewere able to sign a sales agent contract for nuclear
power plant-related equipment with Mitsubishi Heavy
Industries. The trust built up in our thermal power

11

generation business over many years has led to theacquisition of new sources of revenue. While laying thefoundation for improving the Group’s basic earnings
strength, the development of new commercial productsin the industrial machinery business and productbusiness has not progressed as expected, and we
recognize this as an ongoing challenge for the future.
In terms of management operation, we have madeprogress in improving a working environment with theintroduction of business process outsourcing (BPO)
and the flex system, and the introduction of a cash
management system (CMS) and a commitment line have
led to more efficient capital use and debt reduction.

12

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Medium-Term Management Plan “VIORB2030 Phase1”

Four years to build a foundation for achieving the Long-Term Management Vision
The four year Medium-Term Management Plan “VIORB
2030 Phase 1” (FY2023 to 2026), which has already started,
covers the first half of the Long-Term Management Vision“VIORB 2030” and is positioned as a period for foundationbuilding to lead to significant growth in the second half
(FY2027 to 2030), aiming to achieve sales of 110 billion
yen, operating profit of 5.2 billion yen, and consolidated
net profit of 3.5 billion yen in the final year of FY2026.
In order to steadily advance initiatives based on theLong-Term Management Vision over the four years until
FY2026, as a sales strategy, we will steadily implement“strengthening of business foundation focused on theenergy business,” “resolving social issues and expanding
business in four priority business domains,” and “strategic
investment.” Especially in the energy business, wewill verify and improve the operation of the nuclear
power generation business, for which we started agent
operations at the beginning of the fiscal year, to stabilize
it at an early stage. To ensure growth in these focus areas,
we will steadily implement “restructuring of the businessportfolio” to select and concentrate on growth potential,
and replace assets.

Regarding strategic investments, as stated in theLong-Term Management Vision, we will efficiently use
investments without hesitation when judged to beeffective, and we are advancing the establishment ofsystems and flows to rapidly execute the process of
information gathering, research and analysis, investment
decision making, and execution (capital investment).
For the success of business creation through newinvestments, it is essential for the management team towork in coordination with people in the field and sales
departments, and we consider this the most significant
mission imposed on the management team.
Furthermore, in terms of management operation,
we will promote “personnel measures to maximize
performance” as a personnel strategy. We will work
to create an environment where employees, who
are considered as the most important management
resources as a form of capital, can feel more motivatedand fulfilled, aiming for growth and value enhancementof the Group as a whole, and advancing measures suchas the shared use of administrative departments.
of the Board of Directors over business execution has
been strengthened, improving the business executionfunction. Going forward, we will work on improving

Group governance, including overseas, to further
enhance corporate governance and increase corporate
value.

Sustainability

Launch of the Sustainability Committee for the dissemination andstrategic promotion of sustainability management
The Group will further strengthen its sustainability
efforts in line with the strategies set out in the LongTerm Management Vision, aiming for integration withmanagement strategy and a balance with businessgrowth.
To this end, we identified four priority materiality items
to be addressed, along with major themes, in August2023. P.28 Prior to this, in July 2023, we establishedthe Sustainability Committee chaired by the President
and Chief Executive Officer, establishing a system to
execute and manage the promotion of sustainability
strategically. The committee formulates and monitors
sustainability strategies for each of the three categories;“environmental response,” “management that values
people,” and “improving management quality,” and will
analyze sustainability-related information and assess
risks related to sustainability.

13

Specific items to be promoted in the three categories
include ISO14001 and TCFD in “environmental response,”
working style reforms and promotion of the active
participation of women in “management that values
people,” and contribution to SDGs support funds andcommunity coexistence, as set out in our Long-Term
Management Vision, in “improving management quality.”
In addition, to flexibly respond to the rapidly changing
management environment and strengthen ourmanagement structure, we are continuously working
on strengthening and enhancing corporate governancesystems and improving management efficiency. As partof these efforts, in June 2022, we transitioned from a“company with a board of auditors” to a “company with
an audit and supervisory committee.” This has led tofurther acceleration of decision-making and businessexecution, and we view that the supervisory function

Message

Steadily executing our growth strategy to meet expectations along withpromoting communication
As a company listed on the Prime Market, we recognizethat improving P/B ratio is an urgent issue, and our new
Medium-Term Management Plan sets forth the challengeof achieving a P/B ratio of over 1.0x.
We will take further steps to improve the P/B ratio in
response to requests from the Tokyo Stock Exchange toachieve management that is conscious of cost of capitaland stock price. Firstly, regarding the Group’s growthstrategies, through communication with stakeholders
including investors and shareholders, we aim todeepen their understanding of the Group’s businessdevelopment and future prospects by further enhancing
disclosures and promoting constructive dialogues

through various media including integrated reports,
as well as through financial results briefings and online
seminars.
Most importantly, we recognize that continuously
delivering results that meet everyone’s expectations is
crucial. All of our employees are committed to vigorously
pursuing our goal of becoming an organization with astronger profit structure by completing our Long-Term
Management Vision “VIORB 2030.” We hope that all of our
stakeholders look forward to our efforts, and we thankyou for your continued support.

14Outline Vision

Values and Strategies of Seika Corporation

Our Vision

Data Section

Priority business domains

Message from Executive Officer in charge of planning

Regarding the Long-Term
Management Vision “VIORB 2030”
established in April 2022,
I will explain the specific approach of
our business strategy
and the vision we aim for by 2030.

1

Senior Managing Executive Officer

Since its establishment in 1947, the Company has contributed
to society through industrial development over 76 years
amidst the various changes of the times, such as the post-war
reconstruction period, the high economic growth period, andthe lost 30 years after the burst of the economic bubble.
Now, amid a global rise in environmental awareness, there
are strong calls for the realization of a sustainable society
and the social responsibility of corporations. The Company
has established the Long-Term Management Vision “VIORB
2030” in April 2022, to respond to the needs of the times bydemonstrating our significance of existence of “supporting
the sustainable generation of energy and industrial activities
in harmony with the global environment.”
Under our Long-Term Management Vision “VIORB 2030,”
we have set “decarbonization,”“energy and resources
conservation,”“circular economy,” and “DX” as priority
business domains in our business operation.
In particular, regarding environmental issues such as
decarbonization, we are committed to accurately capturing
the needs of industry, focusing on developing and providing
commercial products and services, and addressing the issues
of users including equipment aging and labor shortages
through DX.
We will also pursue innovation of our own business stylethrough DX.

In order to support business development, we have set
and are working on the following five main measures interms of management operation.

develop insight into users’ needs related to decarbonization and
Decarbonization Quickly
technological innovation to commercialize solutions

Energy saving and operational
efficiency improvements
EX)Renewal of manufacturing
equipment
Renewal of aging equipment
I ntroduction of utility
equipment, high-efficiency
equipment, etc.

Yasumasa Kawana

15

Sustainability Strategy and Governance

2

EX)

W
 aste heat recovery, fuelreductionWaste utilization, volume
reduction, fuel conversion,
recyclingEnvironmentally-friendly
equipment, use of naturalrefrigerants, etc.

Net zeroEX) Renewable energy		Woody biomass power
generationR eduction of fossil fuels,
effective use of renewableenergy, etc.

EX)

Forest conservation(reforestation)
		 CO2 credits
		 Carbon pricing, etc.

support to the permanent needs of the industrial circles
Energy and Resources conservation Expand
for energy and resources conservation

Priority businessdomains

Value provided

Product examples

EnergyconservationP rolonging the life of manufacturing
equipment
Automation of equipment managementQ uality assurance device for embankment materials used in generalcivil engineering work, etc.
Renewal of manufacturing equipment and aging equipment

Resources
conservation

Reduction of fuel used
Effective use of renewable energy (storage)W aste utilization, volume reduction, fuelconversion, recycling

Biomass power generation using wood chips or waste as fuelProvision of utility equipment and high-efficiency equipment

3

Circular economy Accelerate progress and actions towards a circular economy
Linear economy

1. I mprove cash management systems to streamline
funding
2. I nvest around 10 billion yen in businesses to deepen
businesses and expand domains
3. E stablish 1 billion yen fund to support SDGs
4. U
 tilize BPO and increase productivity to introduce
human resources in priority business domains
5. C oncentrate management resources tailored to thecharacteristics of each Group company
Advancing these measures will enable us to maximize
and strategically allocate and distribute both funds andhuman resources, which in turn will expand and develop
our business and strengthen group management, thusachieving business success.
By steadily implementing these measures, we aim tocontribute to the realization of a prosperous society byachieving a consolidated net profit of 4.5 billion yen andtransaction value related to green innovation of 200 billion
yen in the final year of “VIORB 2030” in FY2030.

Renewable energy andcombustion conversion

Zero emissions

Circular economy

Raw materials
Raw materials

Production
Recycling

Consumption

Product examples
ProductionU tility equipment and ancillary equipment related torecycling businessE xtending the service life of equipment through theprovision of maintenance services
Biomass power generation using wastes
Refrigeration equipment using natural refrigerant (CO2)

Consumption

Waste

4

DX View digital transformation from a broad perspective to seek business opportunitiesI n the infrastructure industry, structural issues
such as aging and labor shortages are being
addressed through DX.
The Company, through a domestic general
agency contract concerning drone inspection
services with Terra Drone Corporation, is
working towards the evolution of business andenhancement of corporate value by realizing
smart security for plants and manufacturing
equipment.

Inspection service using drones
equipped with ultrasonicinspection devices

16

Outline Vision

Our Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Regarding the Long-Term Management Vision “VIORB 2030” and the Medium-Term Management Plan “VIORB2030 Phase 1”
that covers its first half, we aim to achieve the final year targets through the following strategies and measures.

Long-Term Management Vision Medium-Term Management Plan
Medium-Term Management Plan

“VIORB2030 Phase1”

P revious medium-term management plan
Summary of “Re-SEIKA 2023”
FY2022

OperatingprofitProfitattributableto owners ofparentTargetBusiness environment surrounding
the Seika Corporation Group

ResultIssues in the industry

3.7 billion yen 4.64 billion yen

Increase in energy and material costs
Measures for economic security

2.5 billion yen

5.0 billion yen

Targets achieved inboth consolidated operating profit
and consolidated net profitI nnovation in production processes andconversion from fossil fuels in response to
the 2050 carbon neutrality goalEfforts towards realizinga resource-recycling society

Review of previous Medium-Term Management Plan

Decarbonization
Energy and Resources conservation
Circular economy
DX

17

110 billion yen

Operating profit

5.2 billion yen

Profit attributable toowners of parent

3.5 billion yen

Transaction value related
to green innovation

180 billion yenG rowth strategy
Sales strategy

Strengthen business foundations based on the energy business
Solve social issue and expand business across priority domains on VIORB 2030,
Strategic business investment for the development of new commercial rights
and products

Rebuilding of thebusiness portfolio

Engage in selection and concentration based on careful examinationof each business entity’s growth potential, and implement asset
replacement

Human resources
strategy

Promote a wide range of recruitment activities including professional
staff ex. career personnel, area specialists, career returnees
Level up human resources with enhanced education and training

Changes in the labor environmentM ain MeasuresC hanges in people’s behavior patterns andvalues following the experience of COVID-19,
leading to a transformation in business stylesD ecrease in working population due tolow birthrate and aging populationR eduction of working hours due tocorporate work style reforms

Long-Term Management Vision “VIORB 2030”
Priority business domains

Sales(Strengthening BCP, diversifying supply chains)

Green Transformation

In terms of strengthening the earnings base, in the
Industrial Machinery and Global units, the optimizationof the business portfolio was implemented throughthe reorganization of unprofitable businesses and newinvestments. In expanding new sources of revenue, thetrust we have cultivated over many years in the thermal
power generation business from our business partners
has been instrumental in acquiring the nuclear power
generation business.
As part of our efforts to strengthen managementfoundation, internal infrastructure development andthe introduction of flexible working hours significantly
advanced the improvement of the internal environment.
In addition, we transitioned to a company with an audit
and supervisory committee in an aim to strengthen
governance. In terms of finance, we introduced CMS andcommitment lines, which led to efficient use of funds anda reduction in bank borrowing, while in terms of IR, we
actively communicated information, including disclosuresin response to TCFD.

F
 Y 2026 Target value

Key Management Measures
Improve cash management mechanisms to maximize funding capacity
I nvest around 10 billion yen in businesses to deepen existing businesses
and expand business domains
Establish 1 billion yen fund to support businesses and activities working toachieve the SDGs
S treamline the organization and increase productivity to introduce
human resources in priority domainsC larify strengths based on the unique characteristics of individual groupcompanies and concentrate company resources

Business

CorporateT ransition to a three-segment structure of the Energy
Business, Industrial Machinery Business, and Product BusinessE stablish a structure that enables long-term stable business
operation in the nuclear energy businessC reate new businesses in the fast-growing Southeast Asia regionA cquire a new earnings base through a business investmentof approximately 10 billion yen
S trengthen the business foundations of coordinated Group
companies under leadership of the Business Operation DivisionP romote strategic BPO
to aim for advanced
operations and optimal
personnel placementI ntroduction of personnel
systems that champion
the success of diverse
individuals and provide job
fulfillment to all employees

Target for FY2030
FY2030Transaction value related to green
innovation*

200 billion yen

FY2030FY 2030 consolidated profit
target

4.5 billion yen*S ales of equipment, devices, products, etc., with functions or performance that have apositive impact on or consider the environment18

Outline Vision

Our Vision

Values and Strategies of Seika Corporation

Overview of new segments

Sustainability Strategy and Governance

Data Section

Thermal, nuclear,renewable energy, and other energy
generation-related equipment, etc.

Message from General Manager of Business Operation division

We will optimize the business toserve as a foundation
for sustainable corporate valueenhancement in the current
Medium-Term Management Plan,
which is the first half of
the Long-Term Management Vision
Director
Executive Officer in charge of sales and marketing
General Manager of Business Operation Division

The Global Business saw significant decreases in sales andprofit due to the impact of the COVID-19 pandemic, with asharp decline in performance at business locations in China,
Taiwan, and Southeast Asia.
Starting from the current fiscal year (FY2023), we haveinitiated a new Medium-Term Management Plan, which
will be a major step towards realizing the Long-Term
Management Vision. From this first fiscal year, to enable
tracing of growth by clearly categorized segment over thelong term, we changed our segments from the previous four
segments (electric power, chemicals and energy, industrial
machinery, and global) to three segments (energy, industrial
machinery, and products).

Outline of segment change

EnergyEnergyIndustrial Machinery
Industrial Machinery

Global19

Product

Industrial
Machinerybusiness

S trengthen business foundations based on theenergy businessF our priority business domains of “decarbonization,energy and resources conservation, circular
economy, and DX” for solving social issues andexpanding businessS trategic business investment (drawing growth pathwith business partners, business investments andcreation of innovation business aimed at securingcommercial rights and commercial products, anddeveloping new sources of revenue)
We believe that, without any of these three pillars, it would
be difficult to achieve the Medium-Term Management Plan,
and by solidly executing these three sales strategies, we canreach our goals.
In promoting this sales strategy, we will also work tostrengthen business foundations of coordinated Group
companies under the leadership of the Business Operation
Division.
In addition, during this Medium-Term Management
Plan period, we are considering business investments ofapproximately 10 billion yen in the following areas:i )C reation of new businesses in rapidly growing SoutheastAsiaii ) Development of new green innovation-related productsiii) Acquiring a new earnings base through M&A

Chemicals and Energy Plant
FormerFunctional materials, foodand beverage production
equipment, plant machinery,etc.

In this Medium-Term Management Plan, the pillars of
our sales strategy for “establishing a sustainable revenue
structure” have been set as follows:

Hirohisa Masuda

Regarding the performance of the Group in FY2022, while
each consolidated subsidiary’s business was strong, theCompany had more large-scale project deliveries than usual
on a non-consolidated basis. As a result, sales increased
9.4% year-on-year to 93,311 million yen and operating profit
increased 21.2% year-on-year to 4,636 million yen.
The Energy Business and the Chemicals and Energy Plant
Business saw significant increases in sales and profit due
to steady new installations and maintenance of powercompanies and private power generation facilities, andstrong orders for peripheral equipment.
The Industrial Machinery Business achieved increased
sales and profit, capturing new installations of factories andfacilities related to films and health foods, and benefitted fromthe strong performance of subsidiary Nippon Daiya Valve.

Energybusiness

New

As an important measure in the Energy Business, wehave started nuclear power plant-related sales agent
operations for Mitsubishi Heavy Industries regarding
nuclear power plants in west of the Kansai region fromthe current fiscal year.
For this, eight locations were established, staffed withapproximately 30 employees.

Productbusiness

Element machinery, automation
devices, semiconductors,
specialized measurement-related
products, etc.

While it is still the first fiscal year of the plan and it isunclear how much impact it will have on performance,
the 12 power plants for which the Company is
responsible for after-sales service have already restarted(as of October 2023), and our top priority for this fiscal
year is to ensure their stable operation and to stabilize
the business as soon as possible.
In addition, as long-term missions for each segmentin this Medium-Term Management Plan, the Energy
Business is committed to fulfilling the mission of
supporting stable power supply and keeping pacewith the accelerating GX. In the Industrial Machinery
Business, we will realize comprehensive proposals
responsive to societal environmental needs, while in the
Product Business, we aim for uniqueness and enhancing
product competitiveness and supply chain strength.
Furthermore, in terms of the strategic direction ofeach segment towards 2030, in the Energy Business,
we will first stably implement the service business fornuclear power plants, while actively proposing solutions
for thermal power plants regarding hydrogen, ammonia
combustion and other GX related aspects.
In the Industrial Machinery Business, we will promote
the automation, labor-saving, and the DX of factory
processes for our business partners. In addition, we
aim to achieve recycling and reuse of materials such as
plastics and waste, and transition from selling individualmachines to developing solution businesses tailored tocustomer needs.
In the Product Business, we will enhance production
capacity, improve efficiency, and strengthen
development capabilities in manufacturing companies,
while seeking out stronger products from domestic andinternational markets on a non-consolidated basis.
By firmly implementing these measures, we believethat we can achieve transaction value related to green
innovation of 200 billion yen and a consolidated net
profit target of 4.5 billion yen by FY2030.
20

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Strategy by segment
Business overview
The Energy segment supports power generation facilities, which are responsible
for creating the energy indispensable in all social activities, from various aspects
to ensure its smooth operation. Our main operations include negotiations forconstruction of new domestic power plants, regular inspections, and renovation
works. As a sales agent for Mitsubishi Heavy Industries, we provide equipment andmaintenance services to the private power generation facilities of major customers
and the thermal and nuclear power plants of power companies in the westernJapan area. We support the stable operation of power plants by delivering power
generation equipment such as boilers and turbines, environmental conservationequipment including wastewater treatment, and after-sales maintenance of such
equipment. As a pipeline between customers and manufacturers, we play animportant role in adjusting prices and delivery times, and smoothly advancing
each business negotiation. Recently, we are also focusing on fuel conversion andrenewable energy markets that contribute to decarbonization.

Energy business

Strengths, risks, and opportunities in business

Strengths

Main products and servicesP ower generation and related equipment for nuclear power plantsP ower generation and related equipment for thermal power plants
R enewable energy-related equipment such as hydropower andbiomass power generationR egular inspections and after-sales maintenance of each power
facility and plantP ower plant peripheral equipment such as security devices andutility devicesD ecarbonization through exclusive burning and co-firing of ammonia
and hydrogen in thermal power generation and promotion of various
initiatives related to clean energy

Strategies and issues based on the Medium-Term Management Plan

B usiness stability as an agent for Mitsubishi Heavy Industries, which has strong product capabilities andmarket share in the power generation equipment market
S trong trust relationships and business foundations developed with customers such as power companies
and major chemical manufacturers
Risks

Opportunities

S ignificantly affected by external factors such as
government energy policy, policies of power companies
and manufacturers, and the natural environmentD ecrease in sales of conventional fossil fuel-based
thermal power generation-related equipment due tothe trend toward decarbonization of power sourcesM arket expansion due to the restart of nuclear power
generation as a carbon-free base power source and theacceleration of long-term renewal plansI nvestment increase in the low-carbon and highefficiency transformation of thermal power generation

Fulfilling our mission to support a stable power supply, and following the accelerating pace of GX
Nuclear power generation

Thermal power generation

Renewable energy

Establishing a stable business structure romotion of hydrogen and ammonia
Putilization
Contributing to life extension ofexisting power generation facilities

E xpansion of sales of energy related
equipment including solar, biomass
and hydroelectric power andparticipation in these businesses

Even today, as energy infrastructure faces a major turning point, we continue our business activities with the primary missionof “contributing to stable power supply,” which we have been engaged in for many years.
We will contribute to the best energy mix in Japan by ensuring the reliable maintenance of existing power generation
facilities, promoting the diversification and decarbonization of energy forms, and our business activities at nuclear power
plants, which started under an agent contract with Mitsubishi Heavy Industries in April 2023.

FY2023 Energy Business consolidated performance forecast (sales and profit)
Sales

313

(100 million yen)

320

Segment profit (100 million yen)350

FY2022
In addition to new projects, renewals andmaintenance are progressing strongly(Forecast)(Forecast)

21

18(Forecast)

FY2023
Temporary increase in expenses due to upfront
investments
Large-scale project deliveries coming to a pause

9(Forecast)

FY202221

FY2023

FY2026FY2022

FY2023

FY2026FY2026
Stabilization of earnings from nuclear powerrelated business negotiations
Increased demand due to hydrogen, biomass, andammonia fuel conversion (exclusive burning andco-firing) at existing gas and coal power plants

TOPICS
Upon starting the sales agency operations for nuclear power plantrelated equipment on April 1, 2023, we increased our staff by about
30 and opened eight new branches and offices.
Since its establishment, the Company has been engaged insales agency operations for the thermal power plant equipmentof Mitsubishi Heavy Industries, primarily for power companies
in western Japan, and we believe that the agent contract was
concluded based on the trust built over many years of business
together.
As of October 2023, business transfer and orders are progressing
smoothly, and we will continue our efforts to grow the business as
the main axis of our earnings base while contributing to the stabilityof Japan’s energy infrastructure and CO2 reduction.

Main locations
Genden Tsuruga Office
Mihama Office
Wakasa Branch
Takahama Office
Ohi Office

Genkai OfficeSendai Office

Yawatahama Office22

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Strategy by segment
Business overview

The Industrial Machinery segment handles the sales and maintenance of
production and logistics equipment for a wide range of industrial domains, suchas textiles, films, food, and beverages. Reducing the environmental impact has
become an important management issue for all companies, and in the industrial
machinery domain, while assuming an energy-saving shift, we face various issues
and topics depending on the industry, such as promoting resource conservation
and reducing disposable plastics. In such a business environment, this segment
offers the best solutions tailored to customer needs from the machinery andequipment of domestic and foreign partner manufacturers, with a sales force wellversed in each industry.

Industrial
Machinery business

Strengths, risks, and opportunities in businessP roposal capabilities and on-site response capabilities to solve customer issues comprehensively, fromgeneral to specialized equipment, based on business transactions with about 1,000 manufacturers(in this segment)
Risks

Opportunities

L oss of business opportunities if responses to stricter
environmental regulations are delayedD ecline in domestic investment sentiment within
the business domain due to changes in economic
conditions, etc.

I ncreased sales opportunities for environmentallyfriendly products to business partners that require SDGs
complianceP roposals for optimization from parts to the entire line
through DX enhancement

FY2023 Industrial Machinery Business consolidated performance forecast (sales and profit)
Sales(100 million yen)Segment profit (100 million yen)

380

330

(Forecast)(Forecast)58(Forecast)(Forecast)

FY202323

FY2026FY2023

FY2026P lant process automation and labor-saving equipmentA utomated multi-story warehouses in plantsR emote monitoring equipment utilizing AI, robots, etc.
F reezer and air conditioning equipment for next-generation
refrigerant (CO2, ammonia)D evelopment devices for food and pharmaceutical lab plantsR ecycling fiber and other circular economy-related products

Strategies and issues based on the Medium-Term Management PlanI nformation capabilities that utilize a network of over 100 business locations in Japan and overseas, and the
speed of business development
Strengths

Main products and services

FY2023
Contributions of sales from automation projects
for production lines at major food companies andchemical manufacturers
Contributions of sales from binding equipment forgovernment agencies
FY2026
Acceleration of sales of environmentally-friendly
products
Expand earnings from labor-saving related
business negotiations

Achievement of comprehensive proposals responsive to social and environmental needs
Energy and resource conservation, DX

Circular economy

Solution business roposals for optimal automation andP
resource-saving equipment for eachindustry, such as food, beverages, andfilm
Promotion of DX using robots

 romotion of resource recycling andPreuse business focused on textiles
and plastics
E xploration of new technologies andproducts and mixing with existing
businessF urther deepening sales thatcomprehensively address customer
needs, rather than just sellingindividual equipment

The Industrial Machinery segment’s efforts significantly relate to the priority business domains of “decarbonization,”“energy
and resources conservation,”“circular economy,” and “DX,” listed in the Long-Term Management Vision. While deepening thedevelopment of commercial products and promotion of businesses specialized in the trends and needs of each industry, we
broadly propose automation equipment, which we excel at, without limiting to specific industries or areas, thereby contributing
to green innovation across the entire industry. In addition, as a strategy for business domain and market expansion, we focus on
creating new businesses in Southeast Asia and dynamically promote business investments, including M&As.

TOPICS

Main products in the Industrial Machinery segment

Automation equipment
In some cases, customers’ plants handling specialized products have unique manufacturing processes that are highly
confidential. In such environments where trends strongly demand labor reduction and streamlining, the Company not
only sells general automation equipment, but also proposes unique, safe, secure and optimal automation lines tailored tothe customer by listening to the challenges and needs from the customer’s perspective and by the flexible approach andequipment coordination unique to a trading company.

Film-related equipment
We sell raw material equipment for functional films, film forming equipment, and recycling-related equipment both in Japanand overseas. As the global shift from gasoline to EVs progresses, the demand for lithium-ion batteries (LIB) is expected toincrease further, and we will focus on selling LIB for EVs separator film manufacturing equipment, leveraging the strengths wehave cultivated in this industry.

24Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Strategy by segment
Business overview

Main products and services
The Products segment consists of the measurement and electronic equipmentrelated business within Seika Corporation and Group companies specializing
in products such as valves, submersible pumps, marine engines, and precision
analysis equipment. Many of the products we handle have exclusive sales rights
and are widely used in both Japan and overseas, solidifying their position andbrand as Seika Group products. In addition, some products such as valves, aredeveloped and manufactured in-house, and we are expanding our businessby not only selling, but also providing total support for our products, including
maintenance, seminars, and other services.

Product business

Strengths, risks, and opportunities in business

Strategies and issues based on the Medium-Term Management PlanW
 e have many specialized and highly competitive “strong products”

Strengthen product competitiveness and supply chain with the aim of being truly uniqueB y offering total services ranging from product sales to maintenance, we gain customer trust and establish
a continuous and stable earnings baseStrengths

This segment’s products can be the starting point for exploring new industries and customers,
and it functions as a segment mix element
Risks

OpportunitiesD ependence on specific business partners forresponding to environmental regulations andmaintaining and updating product competitiveness
The impact of micro-industrial trends and new entrants
on product demand is significant in niche areasI ncreased demand for measurement and component
equipment due to the introduction and tightening ofenvironmental regulationsD ecrease in the working population is expected to expand
opportunities for investment in existing manufacturers
and startups related to productivity improvement

FY2023 Product Business consolidated performance forecast (sales and profit)
Sales(100 million yen)Segment profit (100 million yen)

370

26

(Forecast)

300

22

(Forecast)(Forecast)(Forecast)

FY2023
Non-consolidated measurement and electronicequipment sales trended at the level of theprevious fiscal year
While the performance of major subsidiaries andaffiliates is not expected to reach the previous
fiscal year, it is predicted to progress steadily
FY2026
Further business growth of strong affiliates such as
Nippon Daiya Valve and Seika Daiya Engine

FY202325

Marine engines
 arious valves centered on diaphragm valvesVP lant equipment inspection using UT dronesL aser gas analyzers, temperature data loggers, and othermeasurement equipment
S ubmersible pumps for construction work and wastewater
treatment facilities
Particle image velocimetry systemsD iffuser pipes for wastewater treatment facilities

FY2026FY2023

FY2026

Overview of main Group companies and Seika Corporation sales locations within the segment
Seika Daiya Engine
Shikishimakiki

Tsurumi (Europe)GmbH

Nippon Daiya Valve

Seika Corporation
Seika Digital Image

Sales and service ofmarine engines in Japan

Sales of submersible pumps
for construction work

Manufacturing andsales of industrial valves

Sales of measuring equipment,
semiconductor and FPD-related
equipment, UPS, etc.

S hikishimakiki is located in
Hokkaido, while Seika Daiya
Engine has business locations
near fishing ports all overJapan, and holds a highmarket share in the fishingboat engine market
S trengths in on-site service
and maintenance capabilities

Developing businessthroughout Europe withGermany as a hub, where thehead office is locatedWe have an independent
sales network with agents
established in each countryA dopting business forms suited
to the culture of each country,
such as product rentals

P ossess technical expertisedeveloped by addressing
needs from a wide range ofdomains including chemistry,
pharmaceuticals, food,semiconductors, steel, andpower generation, earning highpraise and trust from customers
Top domestic market share formainstay diaphragm valves

Nationwide development
focusing on measuring andanalysis equipment in nichefieldsPlant facility inspections
using UPS equipment and UT
drones, and other businesses
connecting segments andlocations to support theGroup overall

Action.
D eveloping related markets
and equipment by leveraging
experience in handlingmarine engine

Action.
M aintenance and expansionof sales agents in Europe
Capturing infrastructure
projects in Europe andstrengthening sales

Action.
Capital investment for
production and supply
capacity enhancement
Development to ensuretechnical superiority

Action.
Discovering strong
commercial products
including overseas markets
Strengthening
semiconductor businessIn the Product segment, each employee operates as an expert in the products they are responsible for. Products handled inniche areas boast a high level of recognition and strong reputation in each industry, forming an important part of the Seika
Corporation Group’s earnings foundation.
While the challenges, strategies, and specific initiatives vary for each company during the period of this Medium-Term
Management Plan, our common mission is “expanding the handling of strong products” that can take advantage of the uniquecharacteristics of each company. We aim to develop commercial products that will serve as pillars of our business and expand
the range of Seika original products, while utilizing collaborations with business partners, business investments, and M&As, etc.

26

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Sustainability strategy and Governance

Sustainability Management

Sustainability Issues (Materiality)

To realize sustainability as stated in our basic policy, we are operating our business with a long-term strategy. In addition,
we believe that solving social issues through our business will enhance the corporate value of the Group, and in 2023, we
identified the materiality that we should have a particular focus on and also established the Sustainability Committee toaccelerate our sustainability activities.

With the aim of contributing to the realization of a sustainable society through our business, and to further promotesustainability management that embodies our basic policy, we have identified four themes and 12 important issues as ourmateriality.

Identification process

Basic Policy‘– Corporate philosophy “To Contribute to Society Through the Expansion of Business” – In line with the strategies set forth in the longterm management vision “VIORB 2030,” which was formulated based on this philosophy, our basic policy is to “achieve sustainable growth
for the Seika Corporation Group and improve corporate value over the medium to long term” and “work toward the realization of asustainable society” through the Group code of conduct and carrying out missions.

STEP 1.

Extracting social issues

From the international frameworks such as SASB and GRI, and 17 goals and 169 targets of SDGs, we extracted social issues related to ourbusiness
Extracted social issues that are highly relevant to our business

Expansion of clean energy

Reinforcement of compliancesystemDecarbonization of thermal
power generation

Promotion of diversity

Enhancement of corporate
governanceConservation of biodiversity

Promotion of DX

Initiatives based on TCFD
recommendations

Coexistence with local society

Promotion of circular economy

Respect for human rights

Contribution to the sustainabilityof marine resources

Climate change countermeasures

Building a sustainable supply
chain

Promotion of energy and resource
conservation

Improvement of employee
engagement

Enhancing data security

Accelerating innovation

Prevention of air, water, and soil
pollution

Structure of the Sustainability Committee and Promotion Systems
Categories to bepromoted

Environmental
Initiative

Management thatvalues employees

Improving
management
quality

Specific items to be promoted

Related departments, etc.

General Affairs & Human
Resources Dept.
System Planning Dept.
Corporate Planning Dept.
Paperless practices
promotion team
General Affairs & Human
Work style reform
Resources Dept.
P romoting women in theGroup Administration
workplace
Dept.
Utilizing Group human
Safety and Healthresources
Committee
Social contribution/
Corporate Planning Dept.
coexistence with local
Group Administration
communities
Dept.
SDGs support funds
General Affairs & Human
BCP
Resources Dept.
Conforming to ISO14001
Coping with climatechange, etc.
Promoting paperlesspractices

Governance chart of the Sustainability Committee(As of October 1, 2023)

Board of Directors

STEP 2.

Assessing importance and identifying materiality
For the extracted social issues, we identified sustainability issues(materiality) by prioritizing importance for stakeholders based on
our corporate philosophy, strengths, and business characteristics.

Importance for stakeholders

In order to operate the Sustainability Committee comprehensively
and functionally, we sorted it out. We integrated the themes tobe promoted into three categories: “Environmental Initiative,”“management that values people,” and “management quality
improvement.” Under the Sustainability Committee, we establishedsubcommittees to handle each category and formulated theirrespective policy for their initiatives. Each subcommittee acts as an
execution team to realize sustainability management, examines
and carries out specific measures based on its policy, and reports
progress to the Sustainability Committee.
The Sustainability Committee comprises the President, Directors
in charge of (planning, sales and marketing, and administration),and the General Manager of the Corporate Planning Dept. andmonitors, analyzes, and evaluates each issue related to sustainability
in accordance with the above basic policy.

Priority issues

Business execution system
Importance for Seika group

Executive Officers
President

Management that values employees

Conforming to ISO14001
Promoting paperlesspractices
Coping with climatechange, etc.

Work style reform
Utilizing Group humanresources
Promoting women in theworkplace, etc.

Improving Management Quality

Contributing to society
SDGs support funds, etc.
BCP

Theme of Materiality

Internal Audit OfficeEnvironmental Initiative

Export Control Committee

Sustainability Committee
Chairman: President
Committee members: Directors in charge of planning, sales and marketing,and administration, General Manager of Corporate Planning Dept.

Business operations divisions (business locations, headquarters functions, subsidiaries, etc.)

27

Organizing and verifying themes

Corporate Management Meeting members and outside directors discussed the identified 12 materiality to verify them. Then, materiality
were categorized under four themes, and determined upon approval by the Board of Directors.
Compliance Managing Office

Corporate Management Meeting

STEP 3.

1.Contributing to the global
environment
for the next generation

Expansion of clean energy
D ecarbonization of thermal power
generation
I nitiatives based on TCFD
recommendations

2.Contributing to sustainable growthof industry

 romotion of energy and resource
P
conservation
Promotion of Digital Transformation
Contributing to the sustainability ofmarine resources

3.Prosperous coexistence with
Shareholders

Improvement of employee engagement
Promotion of diversity
Coexistence with local society

4.Practicing transparent governance

Enhancement of corporate governanceR einforcement of compliance system
Enhancement of data security

Resolving social issue
through the business

Reinforcement ofmanagement base forsustainable growth

Important Issues

Relevant SDGs

28

Outline Vision

Environment

Information Disclosure Based on TCFD Recommendations

Basic Stance
The Group formulated a long-term management vision for 2030, VIORB 2030, to help realize a fulfilling society by putting into practice our
purpose of “supporting the sustainable generation of energy and industrial activities in harmony with the global environment.”
While working to realize a sustainable society from the standpoints of environment, society and economy and enable Seika tocontribute to the global environment through initiatives to address climate change, we aim to balance these efforts with activities toachieve corporate growth.

Governance and risk management
Under the supervision of the Board of Directors, practical management of promotion of the Group’s climate change measures isconducted by the Environmental Initiative Subcommittee under the Sustainability Committee. In addition, the Environmental Initiative
Subcommittee works with the Group’s business departments, head office organizations, and subsidiaries to examine the applicationof climate change risks and opportunities into business
Board of Directors
strategies, measures to address climate change-related
Supervise
Reportissues, management indicators, and targets, and reports toBusiness execution system
the Sustainability Committee. The Sustainability Committee
Assessment andassesses and analyzes climate change risks and monitors
Approvemonitoring of
Person in charge of planningandmeasures taken by the Environmental Initiative Subcommittee.
climate change risks
supervise
ReportImportant risks, etc. related to climate change are reported
Corporate Management Meeting
Sustainability Committee
to the Corporate Management Meeting through CEO, and theReportAnalyze and manage key
degree of impact and management status are reported to theEnvironmental Initiative
Practical management ofclimate change risks
Subcommittee
promotion of the Group’s
Board of Directors as necessary.

Values and Strategies of Seika Corporation

Based on the TCFD framework, we conducted a qualitative analysis of the impact of climate change on our business and performance.
Scenario analysis was performed based on the following two scenarios.
Under 2-degree scenario: Scenario in which there is a transition to a low-carbon economy
4-degree scenario: Scenario in which the physical climate change risk increases
For climate change scenarios, we used IPCC SSP1-2.6, and IPCC SSP5-8.5.
The time frame of the analysis is basically based on 2030 for a transition risk and 2050 for a physical risk.

Scenarios

Seika Corporation and the four subsidiaries, Nippon Daiya Valve Co., Ltd., Shikishimakiki Corporation, Seika Daiya Engine Co., Ltd., andTsurumi (Europe) GmbH, were selected for analysis. The above analyzed companies account for more than 90% of the Company’s
consolidated net sales and operating income.

Target scope

Impact on operating income-legend
Scenario

Category/

Global changes
Introduction of carbon taxes
and GHG*1 emission regulations
Structural transformation ofenergy mix
Progress in technologicaldevelopment

Risks

Customer Reputation
Under
2-degreescenario

Introduction of carbon taxes
and GHG*1 emission regulations

Opportunities: 1,000 million yen or more

Structural transformation ofenergy mix

Progress in technologicaldevelopment

Increase in averagetemperature/: 100 million yen or more

Item

Impact on operating
incomeIntensification of extreme
weather

Opportunities*1 Greenhouse Gas

29

Intensification of extreme
weather: less than 100 million yen

FY2026 Medium-term management plan initiatives

Increase in carbon taxes

 eduction in CO2 emissions through promotionRof paperless practices, etc.

 educed sales of thermal power generationR
facilities and maintenanceD elays in handling products for high efficiency andreduced carbonization of thermal power generation
Risk of customer defection due to delays in
responding to climate changeE xpanded business opportunities related to theintroduction of energy-saving equipment (all segments)F uel conversion for private power generation facilities
Expanded sales opportunities for renewableenergy-related products
Expanded sales opportunities for nuclear power
generation facilities
Expanded sales opportunities for high-efficiency
and reduced-carbon thermal power generation
facilities
Expanded sales opportunities related to CCUS*2

Energy BusinessEffective utilization of hydrogen/ammonia inthermal power generation
Expanded sales of Renewable energy (solar,
biomass, hydroelectric power, etc.) related
equipment and participation in these businessesSmooth business transfer to start agency
business related to nuclear power stationequipment
Industrial Machinery Business/Product BusinessDevelopment and proposal of new technology/
new materials that contribute to circular
economyStrengthen business competencies in facilities,
equipment and products with functions andcharacteristics beneficial or friendly to theenvironmentIncreased air conditioning costs
Decrease in labor productivity outdoors

Industrial Machinery Business/Product BusinessPromotion of automation and labor-saving
systems using robots, etc.
Strengthen business competencies in solutions
in field work environments

Risks
4 degreescenario/Damage at business locations due to floodingL oss of sales opportunities due to supply chain
disruption(Envisaged maximum value
and insurance coverage)(For one-time occurrence)Increased demand for recovery of damaged facilities
Increased demand for disaster prevention, disaster Impossible to calculate
mitigation, and BCP (business continuity plan)

Data Section

Indicators and targets
The CO2 emissions of Seika Corporation (alone) are shown below.
In the future, we will promote the acquisition of Scope 1 and 2*
greenhouse gas (GHG) emissions of Group companies, and quickly
disclose the GHG emissions and reduction targets for the Group
as a whole. In addition, we will promote information sharing with
suppliers in the supply chain and make efforts to acquire Scope 3
GHG emissions for the Group.
*Scope 1: D irect GHG emissions produced by our own business (fuel combustion,industrial process)Scope 2: I ndirect emissions related to the use of electricity, heat, and steam provided byother companies
Scope 3: I ndirect emissions beyond Scopes 1 and 2 (emissions by other companies
related to business activities)

CO2 emissions of Seika Corporation (alone)
CO2 emissions (left axis)

CO2 emissions per transaction value (right axis)(Tons)(Kg per million yen)

400

300

3.0

2.39

2.18

2.0

1.51

200

321

297
100

266

0

1.0

0

FY2020

FY2021

FY2022

Promotion of green innovation-related products
In addition, the Company is making proactive efforts to achieve carbon neutrality as a general machinery trading company by utilizing its
experience and business infrastructure cultivated in the electric power business and chemical and energy business.
As specific efforts, the Company is promoting the deployment and expansion of “green innovation-related products” to help customers
reduce GHG emissions, and our transaction results for FY2022 are shown below.

Transactions handled for green innovation-related
products in FY 2022

Results
The figures in ( ) show the percentage
year-on-year changes.

climate change measures

Strategy: climate change risks and opportunities

Sustainability Strategy and Governance

FY2022

Products for energy and resources
conservation and increased efficiency

85,800 million yen (+10%)

Products to prevent pollution

9,700 million yen (+61%)

Products for recycling and reuse

1,000 million yen (+11%)

Total

95,600 million yen (+14%)

TargetFY2026

FY2030180,000 million yen

200,000 million yen

Based on the above efforts, we will also examine long-term targets for achieving carbon neutrality.

Initiatives Related to Capturing GHG Emissions
The initiative to realize a decarbonized society is one of the basic policies of “VIORB 2030,” our long-term management vision.
In addition, we are continuing to perform scenario analysis to identify the GHG emissions of the Group, and we are making efforts to
reduce these emissions.

Target scope

Seika Corporation and the four subsidiaries, Nippon Daiya Valve Co., Ltd., Shikishimakiki Corporation, Seika Daiya Engine Co.,
Ltd., and Tsurumi (Europe) GmbH, were selected for analysis. The above analyzed companies account for more than 90% of theCompany’s consolidated net sales and operating income.

Aggregation
targetCO2 emissions (Scopes 1 and 2 and part of Scope 3)

Emission factors

1. Electric Power• Japan: Use emission factors by electric utility (adjusted emission factors)• Overseas: Use CO2 emission factors by country according to the International Energy Agency (IEA)
2. O ther
Use the “List of Calculation Methods and Emission Factors” for GHG emissions published by the Ministry of the Environment

Measures to reduce CO2 emissions

S trengthen BCP (business continuity plan)
Regular review of disaster risks
Creating diversified supply chains
Energy BusinessStrengthen business competencies in power
generation equipment for restoration
Product BusinessStrengthen business competencies inwaste-water pumps at Tsurumi (Europe)

Use EVs

Adoption of CO2 free electricity

Promote paperless practices*2 Carbon Capture, Usage, and Storage

30

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Environmental Business
Basic principles

Action guidelines

As a general machinery trading company specializing in selling a wide range of machines and plants, Seika Corporation believes that
all of our employees have a responsibility as members of society to address environmental issues. We recognize that environmental
problems are of paramount importance to the entire planet, and we strive to conserve and improve the global environment through allof our business activities with the aim of contributing to the achievement of a sustainable society as a creative partner that adds value
to the industry.

1. We comply with environment-related laws and regulations and local ordinances, as well as other requirements we accept.
2. We expand our lineup of environmentally friendly products and products that help mitigate global warming.
3. We actively improve operational efficiency in office and strive to reduce the environmental impact.
4. We continue to improve our environment management system and environmental performance for environmental protection.
5. This environmental policy is communicated to all persons who work in or for the organization.

Examples of environmental businesses towards
reducing environmental impacts

Under our Long-Term Management Vision, “VIORB 2030,” we are striving to expand sales and develop green innovation products that
contribute to the environment by focusing on four priority business domains: decarbonization, energy and resource conservation,
circular economy, and DX. The main activities of the Seika Corporation Group are as follows.

Ultra-lightweight solar panels

SUSTEO, a next-generation biodiesel fuel for fishing boat engines

Since our ultra-lightweight solar panels achieve a highconversion efficiency and are half the weight or less of
conventional solar panels, they can be considered for
installation on flat roofs and low load-bearing roofs thattraditionally cannot support conventional solar panels,
and they are expected to have a fullfledged power generation effect.

Seika Daiya Engine Co., Ltd., a Seika Group
company, collaborated with Euglena Co., Ltd. on
using a biofuel to supply for the first time a nextgeneration biodiesel fuel (SUSTEO) for fishingboat engines.

Decarbonization

Energy andresources
conservation

Small-scale hydropower generation equipment

Laser-type gas analyzer for measuring toxic and corrosive gases

Small-scale hydropower can use smaller agriculturalchannels, water supply facilities, and industrial water in
addition to rivers and dams (including regulating pond,
reservoir, and weir systems). Small-scale hydropower
generation has the same basic configuration as hydropower
generation, the power output is small and the equipment
is also on a smaller scale. To maximize the amount of
power generation under these various conditions, Seika
Corporation provides optimal equipment for varioushydropower generation types throughout Japan for both new construction andrenewal of existing facilities. In addition to turbines, we also supply inlet valves,
power generators, control panels, and other equipment required for power
generation facilities.

The Company handles laser-type gas analyzers from NEO
Monitors AS in Norway. NEO Monitors AS is responsible fordeveloping the world’s first laser-type gas analyzer in 1995
and is a specialty manufacturer with a worldwide networkof distributors and the top global share for this technology.
We have been the exclusive distributor of this technology
in Japan for more than 20 years since NEO Monitors AS wasestablished, and we use our sales network of over 2,000
companies to provide everything from sales to installation,
adjustment, and after-sales service (including regularinspection, calibration, and maintenance support).

Our Long-Term Management Vision“VIORB 2030”
Priority Busi ness Domains

Sale of recycled carbon fiber using processing technology
with a low environmental impact
Amid this situation, Seika Corporation reuses carbon fiberand provides new carbon fiber composite materials as
the exclusive Asian distributor for Rymyc s.r.l. in Italy. This
company makes the most of its location in northern Italy,
where vast amounts of high-quality CFRP end material are
generated, to provide a stable supply of RCF thathas been recycled using a proprietary methodwith low impact on the environment.

31

×Promotion of DX through AI autonomous navigation in small ships

CirculareconomyDX

Eight Knot Inc., a company that develops autonomous
navigation technology for ships, and Seika Daiya Engine Co.
Ltd., have formed a capital and business alliance to develop
their business in Japan. By combining Eight Knot’s highly
unique technology with Seika Daiya Engine’s strong sales
and service network, we aim to solve various problems
faced by maritime and marine businesses and improvesustainability.

32

Outline Vision

Human Resources
Message from Officer in charge of administration

We are promoting strategic review ofour personnel system andhuman resources development policies,emphasizing human capitalfor sustainable enhancement of
the corporate value.
Tomoaki Hasegawa
Director;
Senior Executive Officer in charge of administration

Values and Strategies of Seika Corporation

improve employee motivation and attract skilled personnel.
Previously, over a long period of time, the Company rarely
raised its salary base, and its salary standards were lower
compared with those of its peers. Therefore, in light of thecurrent rise in prices and other social conditions, we raised
the monthly salary base of all employees by 15,000 yen in

Sustainability Strategy and Governance

Data Section

FY2023. Including regular salary increases, the average wage
increase of the Company was about 5%, and we were able todemonstrate our positions in negotiations with labor unions.
At the same time, the starting salary for new graduates(university graduates) was raised from 215,900 yen to
250,000 yen.

Human resources development policy
We are promoting the creation of an environment that
respects the individuality of each employee and enhances
the motivation of employees to develop their skills. We areworking to develop human resources who are responsible
for the realization of management strategies, with the aimof improving practical skill with a high level of expertise andacquiring a wide range of knowledge and capabilities.
The main programs are; hierarchical training for the
purpose of acquiring the job performance skills whichis expected at each rank in accordance with their year of
employment and job titles; goal-oriented training thatlets employees to voluntarily attend training and seminars

on a variety of topics in line with their own objectives;
self-development programs that supports the voluntaryacquisition of foreign languages and qualifications inorder to enhance expertise and education; global humanresources training that nurtures human resources who canplay an active role internationally by dispatching training tooverseas subsidiaries of the Group or by secondment; andhuman resources development program for managementthat aims to nurture candidates who will be responsible
for the Group’s future management. In addition, we haveestablished a succession plan to promote solid growth as amanager through active and systematic development.

System of employee education and training to promote individual growth and improve organizational capabilities and functions
Target/Type
Executive Officers
General managers

Basic stance on investment in human capital and human resources
One of the growth strategies in the Medium-Term
Management Plan is the human resources strategy, andvarious measures are being promoted under the themesof personnel system, human resources development, andrecruitment.
In terms of the personnel system, we are working toreform the system so that diverse personalities can play
an active role and all employees will be able to enjoy job
fulfillment. In terms of human resources development,
we have set a policy to raise skills of our employees byenhancing training programs, and we will make sufficientinvestments to strengthen the Group. We are also promoting
the improvement of diversity in recruitments, and wewill continue to work to become a company where each
employee can feel safe and proud by reinforcing our humanresource investment.
With regard to employee engagement, which has been
attracting attention in recent years, we are working toincrease understanding of the Company and employee’s
unity toward corporate philosophy through communicationfrom management, and to encourage spontaneous action
to lead to success. In addition, we recognize that respectfor human rights should be emphasized by all companies,
and our Group addresses this as an important issue forcompliance.

Personnel system reform and review of salary standards
We have been promoting a system that will be introduced
from April 2024, which reflects the actions and achievements
of individuals regardless of age, with the aim of maximizing
the capacity of the organization by improving the ability andmotivation of employees and assigning the best people forthe job.
The Company’s current personnel system has been in
operation for a long time, and we believe it has not beenable to adequately respond to changes in the businessenvironment and the demands of adapting to diversity.
Under the new system, we will devise measures in the areasof grades, evaluation, and compensation, focusing on thefollowing four items.

33M oving away from seniority-based operations
B uilding systems that promote individual growthand contribute to the improvement of organizational
capabilities and functions
P roper evaluation of individual abilities and reflecting it insalary increases, etc.
W
 e will make bold and prudent efforts to eliminate thejob categories such as career position and non-career
position, and drastically reconsider our existing personnel
management to ensure the optimal allocation of humanresources.
In addition, prior to the new personnel system, we raisedsalary standards in April 2023 in order to maintain andSection managers
Deputy Manager/
Assistant Manager
Younger employees

The
Company New employees

Goal-oriented
training
Succession planning
Human resources
development for
management
Webinars (training
based on company
recommendations andemployee requests)• Training to increase
the number of persons
capable of responding
to the Construction
Business Act, etc.
• Information security
related education• L ectures sponsored byvarious organizations

Self-development

Global humanresources training

Providing support forgetting qualifications• TOEIC• Bookkeeping skill• Trade practice• Telecommunications
construction
management
engineers, etc.

Overseas training
Training for OJT
Determine suitability mentors
for overseas life
and work throughlanguage training, etc.

On-the-Job Training

Training for new
location managers
and section
managers
Meetings to
exchange opinionswith management

Onboarding
training
Follow-up training

Mentoring training

Follow-up training forpeople with offer of
employment (interaction
with employees)

People with offer of
employment
Overseas Branches: Taipei
Branch and Seoul BranchGroup companies

Opportunity tounify minds

Hierarchical training

Visiting the head
officeAttend various webinars
RPA briefing (supervisedby the Accounting
Department)Intercompany exchange
within the Group

Creation of training
opportunities

Onboarding training
Follow-up training
Participating in
Visiting the headtraining for new
officelocation managers
and section managers
FY2020

FY2021

FY2022

Total hours of training

1,400

1,880

1,935

Total training and development costs

11 million yen

26 million yen

28 million yen

Recruitment policy
In order to secure sustainable growth of the Group and tostrengthen its business, we are promoting recruitment froma variety of perspectives over the medium- to long-term.
This includes regular recruitment of new graduates, career
recruitment based on specialization and area, and career
return recruitment for personnel who have worked at theCompany and whom we know of their abilities, experience,and personality.

Policies to promote women’s active
engagement in the workplace, etc.
Since April 2023, we have been promoting a 3-year action
plan based on the Act on Advancement of Measures to
Support Raising Next-Generation Children and the Act on the
Promotion of Women’s Active Engagement in ProfessionalLife. We will further improve the working environment anddiligently promote the active participation of female workers
so that they can demonstrate their abilities and aptitudes
while balancing work with childcare and caregiving. Pleaserefer to pages 35 and 36 to see the indicators we value.
34

Outline Vision

Human Resources

Values and Strategies of Seika Corporation

Pregnancy

BirthApprox. 8 months
pregnant

Attending juniorhigh school

2 years old

Attendinghigh school

Annual paid leave

Time off

Measures to increase the paid leave utilization rate
Based on the Safety and Health Plan, we are analyzing trends and discussing the status of paid leave utilization by location and job type,
and we are proposing measures to improve the paid leave utilization rate.
Introduction of flexible working style
The Company has introduced systems such as flexible working hours, no overtime days (every Wednesday) and premium Fridays.
The flextime system allows employees to set their own daily starting and ending time as well as their working hours within the scopeof the specified total working hours. By using this system,
employees can change their work hours to accommodate thePaid leave
Monthly overtime
Premium Friday
utilization rate
hours(Hours)
utilization rate
time they drop off or pick up their children and to avoid rush
hours when commuting to work. These efforts are aimed at
FY201846.9%
13 hours
21.0%
reducing overtime work.
In addition to paid leaves, we have summer vacation and
FY201949.4%
8.8 hours
29.0%
New Year’s holiday. Also, we adopted a system of accumulated
leave that can be used in the event of an employee’s injury or
FY202056.4%
10.3 hours
27.0%
illness or to care for family members, and a system of return
leaves for overseas employees.
FY2021

59.0%

10.3 hours

27.0%

FY2022

67.0%

12.5 hours

28.0%

Improvement of working environment, promotion of diversity and inclusion
Status of Compliance with the Act on Advancement of Measures to Support Raising Next-Generation Children and the Act on
the Promotion of Women’s Active Engagement in Professional Life
We believe that placing diverse talent in the right place and enabling them to make the most of their individual abilities is indispensable to the sustainable growth and development of the Company.
We will continue to further improve the working environment so that employees can demonstrate their abilities and aptitudes
while balancing work with childcare and caregiving. We will also actively promote the active participation of female workers and strive
to create an environment where employees can work more enthusiastically.
(Planned period: Three years from April 1, 2023 to March 31, 2026)
I mprove the childcare andcaregiving system

In order to enable employees to participate more in child-rearing, we are actively conducting activities to makeknown various systems, such as childcare leave at birth, and are working to improve the working environment sothat employees can easily use the systems. We are also enhancing the caregiving system.

Challenging new work styles

Through the promotion of Business Process Outsourcing (BPO), we aim to realize our ambitions of challenging
ourselves to achieve more sophisticated business operations by improving operational efficiency and optimizing
our organization and structure.
In addition, we will further promote the flextime system to support the balance of work and family life, and aim toincrease the current usage rate from 70% to 80%.

D eveloping a system in whichfemale workers can play anactive role

With the introduction of the new personnel system, we are reviewing the current grading system, expanding therange of roles for employees, and enhancing feedback on the results of evaluation and assessments to support
building career paths, thereby providing various work style options and developing a system that allows female
workers to play an active role.
In addition, we aim to enhance the training content for both regular and contract employees in order to improvetheir abilities, and to achieve a 100% participation rate for female employees.

D iscussion and examination
by senior management

We have established a forum where senior management, female employees, and young employees who will lead thenext generation exchange opinions on a regular basis. Upon taking into account the needs regarding overall work
styles, including matters related to childcare and caregiving, the Board of Directors, the Corporate Management
Meeting, etc. conduct discussions and examination for further improvement of specific action plans.

Nursing care leave (5 days per year per child)

Leave

Pregnancy disability
leave

Pre-birth
Post-birthmaternity leave maternity leave(8 weeks)(8 weeks)

Childcare andreinstatement
consultation

Childcareleave at birth

Shortenedworking hours forchildcare

Data Section

Balance between work and caregiving

Childcare

2 months old

Promotion of work style reform

Sustainability Strategy and GovernanceChildcare leave
Until April when the child 1 year old(max. 2 years old)

Caregiver leave
Exemption from overtime work(overtime, holiday, and late-night work)
Overtime limitation
Caregiver leave(up to 5 days (40 hours when working
hourly) per year when caring for 1 person,or 10 days (80 hours when working hourly)
when caring for 2 or more people)
Use of special reserve for paid vacation(up to 40 days)

Shortened working hour system for childcare

Extended caregiver leave
Overtime limitation

Overtime
limitation

Extended caregiver leaveLate-night (10p.m. to 5a.m.) work prohibited
Exemption form overtime work

Available only to female workers

Available to both female and male workers

Recruitment that promote diversity
Diversification of recruitment systems
We promote various recruitment activities based on the following overall policy.
Recruit the necessary talent in order to secure sustainable growth of the Group and to strengthen its business.
Looking beyond immediate personnel demand for medium- to long-term business growth.
S ystematically recruit human resources from a medium- to long-term perspective, mainly for basic profit-making businesses such as
the energy business, to respond to staff shortages caused by rapid expansion of business and unexpected employee departure.
P ersonnel who are necessary for strengthening the functions of the corporate departments will be recruited in consideration of
specialization, scarcity, etc., in order to enhance the sophistication of the Group’s management.
ExpertActively recruit personnel with high level of expertise and experience that are essential to thecharacteristics of each business.

Area(Region limited)

Actively employ personnel whose work area will be limited to each business site, in order toensure business continuity at each site in accordance with the characteristics of each businessand the business environment such as locality, and to respond to the diversity of work styles of
employees.

ReturnRecruiting those who worked for Seika Corporation and retired for personal reasons in the past.

Use of Group
personnel

Efforts to deepen coordination of personnel information ( job openings and job departures)among Group companies and to optimize the assignment of skilled personnel within Group
companies.

Mid-career hiring ratio offull-time workers
FY201950%

FY202025%

FY202140%

FY2022

67%

Employee satisfaction survey
In order to create a comfortable working environment for our employees, we conduct an annual employee satisfaction survey for all
employees, examine and implement improvement measures, and monitor changes in indicators.
The survey results for FY2022 (response rate 81%) showed a 79% satisfaction
Employee Satisfaction Survey (Overall Satisfaction)rate, an 8.5% improvement from the previous survey. We believe that the
Town Hall Meetings, which we started in FY2021, have led to an improvement
The Company
Industry averagein the work environment through enhanced empathy with the attitude ofmanagement communicating with employees and with management’s words
Satisfaction Dissatisfaction Satisfaction Dissatisfaction
and actions.
FY2020
70.6%
13.3%
45.6%
24.3%
In addition, results of survey items such as “comfortable working systems areprovided” and “diverse working styles are available” improved significantly fromFY2021
70.5%
15.1%
47.2%
23.6%
the previous survey.
We will continue to provide opportunities for dialogue with employees and
FY2022
79.0%
9.3%
50.5%
21.9%
work to further improve our business environment.

Occupational health and safety initiatives
Supporting Childcare and Caregiving in the Workplace
In order to support the balance between work and childcare, we have established various leave systems, a shortened working hoursystem for childcare, restrictions on overtime and late-night work during the period from pregnancy until the child enters high school. All
systems are available to both men and women, except for pregnancy and childbirth-related leave systems.
In order to balance work and caregiving, we have established a leave system that supports the preparation period for caregiving andbalance with work, and a system that allows employees to choose a work style that suits their work situation, such as shorter working
hours. We have also introduced a caregiving leave system.

35

Employee health initiatives
In order to maintain and improve the health of its employees, the Company fully covers the cost of checkups to prevent lifestyle-relateddiseases or medical checkups, tumor marker tests, and influenza vaccinations for employees and officers who are aged 30 and over, in
addition to statutory health checkups as part of its welfare package
We also conduct stress checks for all employees as part of our regular health checks. In addition, we provide opportunities for
employees to hold interviews with physicians in response to their requests regarding the exam results, and employees will be able to takecorrective measures based on the advice of physicians.

36

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

List of Directors
Director

April
April

2013
2014

June

2014

April

2015

April
April

2016
2018

Akihiko Sakurai

Yasumasa Kawana

Masanori Abe

Yuko Shirai

President and CEO

Director; Senior Managing Executive Officer
in charge of planning

Director
Audit & Supervisory Committee

Outside Director
Audit & Supervisory Committee

Attendance atBoard of Directors Meetings

Attendance atBoard of Directors Meetings

Attendance atBoard of Directors Meetings

Attendance atBoard of Directors Meetings

100% (14/14 times)

100% (14/14 times)

100% (10/10 times)

100% (14/14 times)

Joined the Company
General Manager, Machinery Department II, Osaka Operations Division II
President, Seika Shanghai Co., Ltd.
General Manager, Strategical Planning Department, Corporate Planning Division andGeneral Manager, Asian Market Department, the Company
Executive Officer; General Manager, Tokyo Operations Division I
Executive Officer; Deputy General Manager, Business Control Division, Industrial
Machinery Region
Director; Senior Executive Officer; Deputy General Manager, Business Control
Division, Industrial Machinery Region
Director; Managing Executive Officer; General Manager, Business Control Division,
Industrial Machinery Region
Director; Managing Executive Officer; General Manager, Business Control Division
Representative Director;President and CEO (to present)

April
April

1984 Joined the Company
2010 General Manager, Strategical Planning Department, Corporate Planning Division and Deputy General
Manager, Internal Audit Office and Deputy General Manager, Affiliated Company Supervision Division
April
2011 General Manager, Nagoya Branch, Osaka Operations Division II
April
2013 Director and Deputy President, Nippon Daiya Valve Co., Ltd. (seconded)July
2013 President and CEO
April
2015 Executive Officer, the Company President and CEO, Nippon Daiya Valve Co., Ltd. (seconded)
April
2016 Senior Executive Officer, the Company President and CEO, Nippon Daiya Valve Co., Ltd. (seconded)
April
2017 Senior Executive Officer, the Company; General Manager, Subsidiary and Affiliate Business
Strategy Division and General Manager, Subsidiary and Affiliate Administration Department
June2017 Director; Senior Executive Officer, the Company; General Manager, Subsidiary and Affiliate Business
Strategy Division and General Manager, Subsidiary and Affiliate Administration Department
April
2019 Director; Managing Executive Officer; General Manager, Subsidiary and Affiliate
Business Strategy Division
October 2020 Director; Managing Executive Officer; General Manager, Subsidiary and Affiliate
Business Strategy Division and General Manager, Business Strategy Department
November 2020 Director; Managing Executive Officer; General Manager, Subsidiary and Affiliate
Business Strategy Division
October 2021 Director; Managing Executive Officer; General Manager, Corporate Planning Division
and General Manager, Subsidiary and Affiliate Business Strategy Division
April
2022 Director;Senior Managing Executive Officer in charge of planning (to present)

June
June
June

*The stated Attendance at Board of Directors Meetings is based on the Board of Directors meetings
held in and after June 2022 after his assumption of office as Director and a Member of the Audit
and Supervisory Committee.

Tomoaki Hasegawa

Yoshihiko Nakamura

Director; Managing Executive Officer incharge of sales and marketing; General
Manager, Business Operation Division

Director; Senior Executive Officer in chargeof administration

Outside Director
Audit & Supervisory Committee

Attendance atBoard of Directors Meetings

100% (10/10 times)
April
April
April

1983 Joined the Company
2008 General Manager, Nagasaki Branch, Kyushu Business Operation Division2013 General Manager, Strategical Planning Department, Corporate Planning Division;
Deputy General Manager, Internal Audit Office
April2014 Deputy General Manager, Business Control Division, Chemicals and Energy Plant Region
April2015 Executive Officer; Deputy General Manager, Business Control Division, Chemicals andEnergy Plant Region
April2016 Executive Officer; General Manager, Global Business Division; General Manager,
Overseas Business Department
April
2017 Executive Officer, the Company; Director and President, Nippon Daiya Valve Co., Ltd. (seconded)
April
2019 Senior Executive Officer, the Company Director and President, Nippon Daiya Valve Co., Ltd. (seconded)
April
2022 Managing Executive Officer in charge of sales and marketing; General Manager,
Business Operation Division, the Company
June2022 Director; Managing Executive Officer in charge of sales and marketing; General
Manager, Business Operation Division (to present)*The stated Attendance at Board of Directors Meetings is based on the Board of Directors meetings
held in and after June 2022 after his assumption of office as Director.

37

March
April

1982 Joined the Company
2010 General Manager, General Affairs & Personnel Department
2016 Director, General Manager, General Administration Division;
General Manager, General Affairs & Personnel Department, Nippon Daiya Valve Co.,
Ltd. (seconded)2017 Retired from the Company
2017 Joined Nippon Daiya Valve Co., Ltd.
Director, General Manager, General Administration Division;
General Manager, General Affairs & Personnel Department
2020 Retired from Nippon Daiya Valve Co., Ltd.
2020 Auditor, the Company
2022 Director, Full-time Audit & Supervisory Committee(to present)

Hirohisa Masuda

Attendance atBoard of Directors Meetings

April
1969
December 1998
December 2003
December 2008
February 2009
June
2012
October 2014
December 2017
January 2019
June
2020

April
April
June

100% (14/14 times)
April
April
April
April
April
April
June
April

1986 Joined the Company
2011 General Manager, Accounting Department, General Administration Division and
Deputy General Manager, Affiliated Company Supervision Division2013 General Manager, Accounting Department, General Administration Division;
President, Seika Sangyo GmbH and President, Tsurumi (Europe) GmbH2016 General Manager, Accounting Department, General Administration Division andPresident, Seika Sangyo GmbH2019 Executive Officer; Deputy General Manager, General Administration Division andGeneral Manager, Accounting Department, General Administration Division
2021 Senior Executive Officer; General Manager, General Administration Division
2021 Director; Senior Executive Officer; General Manager, General Administration Division
2022 Director; Senior Executive Officer in charge of administration (to present)

1986 Registered as attorney (Tokyo Bar Association)

April

1991 Established Wing Law Office (formerly Shin-Yotsuya Law Office) (Partner)

April

2004 Director, Kanto Federation of Bar Associations

April

2005 Expert Committee Member and Conciliation Committee Member, Tokyo District Court

May

2009 Chair, Shinjuku Ward Board of Education

April
April

2010 Auditor, Japan Federation of Bar Associations
2011 Auditor, Japan Intellectual Property Arbitration Center

April

2012 Vice-President, Tokyo Bar Association

October 2013 Chair, Shinjuku Ward Board of Education
June
April

2015 Outside Director, the Company(to present)2016 Audit Commissioner, Shinjuku Ward, Tokyo (Part-time)

April

2019 Chief Audit Commissioner (Part-time) (to present)

June
June

2021 Independent Director, ANEST IWATA Corporation
2022 Outside Director, Audit & Supervisory Committee (to present)

100% (10/10 times)
October 2003 Partner, KPMG AZSA & Co. (currently KPMG AZSA LLC)
June
2019 Retired
July2019 Established Certified Public Accountant Yoshihiko Nakamura Accounting Office(topresent)
June2020 Outside Director, MITSUBISHI MOTORS CORPORATION(to present)June2020 Outside Auditor, the Company
June2022 Outside Director, Audit & Supervisory Committee (to present)*The stated Attendance at Board of Directors Meetings is based on the Board of Directors meetings
held in and after June 2022 after his assumption of office as Director and a Member of the Audit
and Supervisory Committee.

Skills matrix
Skills expected by the Company (knowledge, experience, abilities)

Kiyomi Miyata

Masanori Kagami

Outside Director

Outside Director

Attendance atBoard of Directors Meetings

Attendance atBoard of Directors Meetings

100% (14/14 times)

100% (10/10 times)

Joined HOSOKAWA MICRON CORPORATION
Director
Vice President
Representative Director, President
Director, The Japan Society Of Industrial Machinery Manufacturers
Vice Chairman, Hosokawa Powder Technology Foundation
Chairman, HOSOKAWA MICRON CORPORATION
Full-time Adviser
Adviser (Part-time)
Outside Director, the Company (to present)

April

Attendance atBoard of Directors Meetings

January 1980 Joined Nippon Yusoki Co., Ltd. (currently Mitsubishi Logisnext Co., Ltd.)
June
2010 Director, Executive Officer Representative Director and President, Nichiyu MHI Forklift
Co., Ltd.
Director, Kitakanto Nichiyu Co., Ltd. (to present)
April
2013 Director, Senior Executive Officer, Mitsubishi Nichiyu Forklift Co., Ltd. (currently
Mitsubishi Logisnext Co., Ltd.)
June
2015 Director, Managing Executive Officer
October 2017 Director, Executive Vice President, Mitsubishi Logisnext Co., Ltd.
June
2020 Director and Chairman; Chairman of the Board of Directors
June2021 Senior Executive Advisor
Vice Chairperson, Japan Industrial Vehicles Association
Member, Kyoto Chamber of Commerce and Industry
June2022 Outside Director, the Company(to present)*The stated Attendance at Board of Directors Meetings is based on the Board of Directors meetings
held in and after June 2022 after his assumption of office as Director.

Name

Director serving as
Directors
a member of the(excluding Members of the Audit
Audit and Supervisory
and Supervisory Committee)
Committee

February 1989
April
2005
April
2009
April
2011

Director serving as a member of the Audit and Supervisory Committee

Independence

Male
FemaleCorporate
management/
businessstrategy

Finance /Accounting

Legal affairs/
ComplianceIndustryknowledge
Marketing

ESG
Sustainability

Internationality

Akihiko Sakurai
Yasumasa Kawana
Hirohisa Masuda
Tomoaki Hasegawa
Kiyomi Miyata
Masanori Kagami
Masanori Abe
Yuko Shirai
Yoshihiko Nakamura*The table above does not present all skills possessed by each candidate.

38

Outline VisionCorporate Governance
The Company’s corporate philosophy is to Contribute to Society Through the Expansion of Business. Based on this philosophy, we areworking to enhance our corporate value over the medium- to long-term while building good relationships with all stakeholders. We
believe that soundness and transparency of management and prompt decision making and implementation are essential for realizing
this, and we are working to enhance our corporate governance. The Company is strengthening its management supervision systemthrough its independent Outside Directors and independent Outside Auditors.

Internal Control
In order to appropriately conduct business while complying with laws and regulations and the Articles of Incorporation, we haveestablished and operate an internal control system and we are working to continuously enhance and improve the system. The current
internal control system was established in the Basic Policy of Internal Control System, which was revised on June 28, 2022.

General Meeting of Shareholders

Compensation
Review Committee

Election anddismissal

Board of Directors
Directors

Election anddismissal
Audit
and direct

Election anddismissal

Audit andSupervisory Committe Collaborate

Director serving as a member of the Audit andSupervisory Committee
Advice andreports

Elect and dismiss Executive Officers
Delegate and supervise business execution

Discuss important matters
Report business execution

Audit

Accounting Auditor

Collaborate

Report audit results
Share audit plan

Audit

Business execution system
Managing Director andExecutive Officer

Sustainability
Committee

Corporate
Management Meeting

Monitoring
Policydetermination andpromotion

Discuss provisions
Collaborate on
business issues

Instructions
and requests

President

Conduct andsupervise businessexecution
Communicate anddisseminate
management decisions

Audits andfindings

Internal Audit Office• Purpose, Authority: R eview the personnel proposal prepared by the President and Chief Executive Officer in response to consultationfrom the Board of Directors, and report the results to the Board of Directors.
• Members: [ Chairperson] Kiyomi Miyata (Outside Director), Masanori Kagami (Outside Director), Yuko Shirai (Outside Director and Audit& Supervisory Committee)
Observer Yoshihiko Nakamura(Outside Director and Audit & Supervisory Committee)
The Nomination Review Committee, which is voluntarily established as an advisory body to the Board of Directors, consists of four people,
including three committee members who are Outside Directors and one observer. Five regular meetings were held during the fiscal year
under review, all of which were attended by all the members and the observer. Based on consultation from the Board of Directors, theCommittee deliberates on the selection criteria for candidates for positions of Representative Director and Director, reviews the selection
process and evaluation details of candidates for positions of Representative Director and Director, and reviews the evaluation details of
the selection of Executive Officers with titles and reports to the Board of Directors. In addition, meetings to exchange opinions with the
President and Chief Executive Officer and the Audit and Supervisory Committee, individual interviews with Executive Officers who are not
Directors, and individual interviews with persons eligible for the human resources development program for management are also being
vigorously conducted, and the Committee is fulfilling its intended role in supporting the Succession Plan.

Export Control
Committee
Compliance Managing
Office• Purpose, Authority: P repare assessment proposal for executive bonuses of Representative Directors and deliberate assessment proposals
for executive bonuses of other Directors and Executive Officers, and report the results to the Board of Directors.
• Members: [ Chairperson] Masanori Kagami (Outside Director), Kiyomi Miyata (Outside Director), Yoshihiko Nakamura (Outside Directorand Audit & Supervisory Committee), Akihiko Sakurai, Tomoaki Hasegawa
Observer Yuko Shirai (Outside Director and Audit & Supervisory Committee)
The Compensation Review Committee, which is voluntarily established as an advisory body to the Board of Directors, consists of fivecommittee members (three Outside Directors, two Internal Directors) and one observer who is an Outside Director. Eight regularmeetings were held during the fiscal year under review, all of which were attended by all the members and the observer. In the courseof these discussions, changes to the stock remuneration-type stock options system and a review of the assessment range of executive
bonuses, etc. were considered and discussed, and the results were reported to the Board of Directors. In addition, under the compositionof the Committee for the previous fiscal year prior to June 2022, and with the participation of members limited to those who are Outside
Directors, regarding executive bonuses for Managing Directors, the Committee proposed a bonus assessment plan for the President
and Chief Executive Officer. It then conducted a review of bonus assessment plans for those other than the President and made reports,
fulfilling its expected role as Compensation Review Committee.

Reasons for Election of Outside Directors and Main Activities
ConfirmandmanageAwareness andpromotion

Business departments (business locations, head Office organization, subsidiaries, etc.)

Name

Kiyomi
MiyataOutside Director

Board of Directors• Purpose, Authority: D eliberate and decide on matters stipulated in the Regulations of the Board of Directors in addition to those
stipulated in laws and regulations or the Articles of Incorporation.
• Members: [ Chairperson] Akihiko Sakurai (President and CEO), Yasumasa Kawana, Hirohisa Masuda, Tomoaki Hasegawa, Masanori Abe,
Kiyomi Miyata (Outside Director), Masanori Kagami (Outside Director), Yuko Shirai (Outside Director), Yoshihiko Nakamura(Outside Director)

Masanori
Kagami
Outside Director

Audit and Supervisory Committee• Purpose, Authority: A ttend major meetings, including the Board of Directors meetings with voting rights, to express opinions basedon the audit policy and audit plan, and audit the execution of duties by Directors through reports from accounting
auditors, internal audit offices, investigations of subsidiaries and affiliates, investigations of the status of businessand assets, etc.
• Members: [ Chairperson] Masanori Abe, Yuko Shirai (Outside Director), Yoshihiko Nakamura (Outside Director)

Corporate Management Meeting• Purpose, Authority: P rior consultation on matters to be submitted to the Board of Directors and deliberation and decision on mattersdelegated by the Board of Directors.
• Members: [ Chairperson] Akihiko Sakurai (CEO), Yasumasa Kawana, Hirohisa Masuda, Tomoaki Hasegawa, Noriyuki Takahashi,
Tatsuhiko Nojiri, Akira Yumen, Yuji Honda, Katsumi Nakamura
39

Data Section

Compensation Review Committee

Overview of Corporate Governance System

Nomination
Review Committee

Sustainability Strategy and GovernanceNomination Review Committee

Basic Stance on Corporate Governance

Advice andreports

Values and Strategies of Seika Corporation

Yuko
Shirai
Outside Director
Audit & Supervisory
Committee

Yoshihiko
Nakamura
Outside Director
Audit & Supervisory
Committee

Reasons for election

Mr. Kiyomi Miyata has monitored and supervised the Company’s
management from an independent perspective as an Outside
Director since June 2020. He has also been active in boththe Nomination Review Committee and the Compensation
Review Committee, fulfilling his duties appropriately. Mr. Miyata
previously held important posts such as Representative Director
and President of HOSOKAWA MICRON CORPORATION. Based on
his extensive experience, he has a higher viewpoint and broad
view and can be expected to provide advice and supervisionfrom a perspective different from internal directors. Thus, theCompany has elected him as an Outside Director.
Mr. Masanori Kagami assumed the position of Outside Director
in June 2022 and has monitored and supervised the Company’s
management from an independent perspective. He has also
been active in both the Nomination Review Committee and theCompensation Review Committee. He has held a number ofimportant positions such as Director and Chairman of Mitsubishi
Logisnext Co., Ltd. Based on his experience, he has a practicalsense and a higher viewpoint and can be expected to makeproposals from a perspective different from internal directors.
Thus, the Company believes that he is capable of contributing
to the enhancement of management structure of the Company,and has elected him as an Outside Director.
Ms. Yuko Shirai has monitored and supervised the Company’s
management from an independent perspective as an Outside
Director since June 2015. She has also been active as Chairperson of
the Nomination Review Committee, fulfilling her duties appropriately.
She has specialized knowledge and insight as an attorney, mainly
relating to corporate legal affairs, as well as an objective perspective
overlooking society in general. The Company judges that she willcontribute to ensuring transparency and fairness from a perspective
different from internal directors, and thus elected her as an Outside
Director serving as a Member of the Audit and Supervisory Committee.
Mr. Yoshihiko Nakamura has served as an Outside Auditor of theCompany since June 2020. He has provided fair and impartial
judgments from an objective perspective on the legality of the
Directors’ execution of their duties and the appropriateness ofaccounting audits, and contributed to ensuring the soundnessof the Company’s management. As a certified public accountant,
he has been involved in a number of corporate accounting audits
and M&A projects, and has a high level of expertise in corporate
accounting and auditing. The Company expects him to provide
advice and supervision from a perspective different from internal
directors, and thus elected him as an Outside Director serving as
a Member of the Audit and Supervisory Committee.

Main activities

Mr. Kiyomi Miyata attended all of the meetings of the Board of Directors held during
the fiscal year under review, expressing accurate views and providing useful opinions
on matters ranging from overall management to sales-related issues, based on his
extensive experience and insight as a business manager, and contributing to enhancing
the Company’s corporate value. He also serves as a member of the Compensation
Review Committee, which provides opinions and recommendations on the assessmentof bonuses for Directors and on the review of the executive remuneration system, andas the Chairperson of the Nomination Review Committee, which examines the selection
process and evaluation of candidates for Representative Directors and Directors
and reports the results to the Board of Directors. During the fiscal year under review,
the Nomination Review Committee met five times and the Compensation Review
Committee met eight times, and Mr. Kiyomi Miyata attended all of these meetings.
Mr. Masanori Kagami attended all of the meetings of the Board of Directors held after
his assumption of office of Outside Director, expressing accurate views and providing
useful opinions on matters ranging from overall management to sales-related issues,
based on his extensive experience and insight as a business manager, and contributing
to enhancing the Company’s corporate value. He also serves as the Chairperson of theCompensation Review Committee, which provides opinions and recommendations on
the assessment of bonuses for Directors and on the review of the executive remuneration
system, and as a member of the Nomination Review Committee, which examines theselection process and evaluation of candidates for Representative Directors and Directors
and reports the results to the Board of Directors. During the fiscal year under review, theNomination Review Committee met five times and the Compensation Review Committee
met eight times, and Mr. Masanori Kagami attended all of these meetings.
Ms. Yuko Shirai attended all of the meetings of the Board of Directors andmeetings of the Audit and Supervisory Committee held during the fiscal year
under review, and provided advice not only from her professional perspective
as an attorney but also from an objective perspective overlooking society ingeneral, to ensure the transparency and fairness of the decisions made by the
Board of Directors. She also serves as a member of the Nomination Review
Committee, which examines the selection process and evaluation of candidates
for Representative Directors and Directors and reports the results to the Boardof Directors. During the fiscal year under review, the Nomination Review
Committee met five times, and Ms. Yuko Shirai attended all of these meetings.
Mr. Yoshihiko Nakamura attended all of the meetings of the Board of Directors
and meetings of the Audit and Supervisory Committee held during the fiscal year
under review, and made comments from his professional perspective as a certified
public accountant, to ensure the legality and validity of the decisions made by
the Board of Directors as a Member of the Audit and Supervisory Committee.
In addition, he gave advice on the development of internal control of overseas
subsidiaries of the Company based on his experience in auditing global companies
at a leading auditing firm. He also serves as a member of the Compensation Review
Committee, which provides opinions and recommendations on the assessmentof bonuses for Directors and on the review of the executive remuneration system.
During the fiscal year under review, the Compensation Review Committee met
eight times, and Mr. Yoshihiko Nakamura attended all of these meetings.

40

Outline Vision

Evaluation of the Effectiveness of the Board of Directors
In order to confirm whether the Board of Directors is effectively fulfilling its roles and responsibilities, and to identify issues andimprovement measures to build a better Board of Directors, the Company has established a system for evaluating the effectiveness of theBoard of Directors since FY2017, and has been conducting a self-evaluation questionnaire for Directors. In FY2020, analysis and evaluation
were also conducted by external organizations.
The implementation guidelines for the evaluation of the effectiveness of the Board of Directors and results of its analysis and evaluation
for FY2022 (April 2022 to March 2023) are as follows.
1. Method of evaluation( )All of the Company’s Directors (including Directors serving as
Members of the Audit and Supervisory Committee) answered a selfassessment questionnaire as well as open-ended questionnaires
regarding issues to be addressed, etc.
( )The secretariat of the Board of Directors compiled the results of thequestionnaire, analyzed the results, and conducted a comprehensive
evaluation, and its summary was reported to the Board of Directors.
( )The contents of the summary was acknowledged and reviewed by
the Company’s Board of Directors and respective Directors, and theyshared their awareness of issues to be addressed in the future, etc.
(Self-Evaluation Questionnaire)
Composition and operation of the Board of Directors (10 questions)Management strategy and business strategy (7 questions)
Corporate ethics and risk management (6 questions)M onitoring of business execution and nomination andcompensation of management (5 questions)
Dialogue with shareholders (2 questions)
General question (1 question)

2. Analysis and evaluation results
The effectiveness of the Board of Directors is judged to be ensured,in light of the fact that all members of the Board of Directors haveaffirmatively self-assessed and responded to the general question“Overall, the Board of Directors is functioning effectively.” With
regard to individual questions, there was a considerable amountof self-evaluation and answers that said “improvements should bemade” in reviewing the business portfolio, monitoring the progressof the management plan, understanding risks and establishingcountermeasures, etc., and specific issues were also mentioned.
Therefore, the Board of Directors identified the areas for improvement.
3. Initiatives going forward
With regard to issues and matters to be improved identified by thisevaluation of the effectiveness of the Board of Directors, the Board of
Directors will adopt them individually as proposals at future meetingsof the Board of Directors, and fully discuss improvement measures,etc., and follow up on their responses and implementation.

Sustainability Strategy and Governance

Data Section

Total amount of remuneration, etc. for each category of officers, total amount by type of remuneration, etc., andnumber of eligible recipients
Total remuneration by type (Million Yen)

Category of officers

Total remuneration(Million Yen)

Fixed remuneration

Performance-linked
remuneration

Non-monetary
remuneration

Number of eligible
recipients

Director(excluding Members of the Audit andSupervisory Committee and Outside Directors)

277

127

119

30

6

Audit & Supervisory Committee(excluding
Outside Directors)

14

14

−

−

1

Auditors (excluding Outside Auditors)

10

10

−

−

2

Outside Directors and Outside Auditors

34

34

−

−

6

Notes:1 The Company transitioned from a company with a board of auditors to a company with an audit and supervisory committee as of June 28, 2022.
2 Performance-linked remuneration consists of a bonus of 119 million yen for Directors (excluding Members of the Audit and Supervisory Committee and Outside Directors).
3 N on-monetary remuneration consists of stock remuneration-type stock options of 30 million yen for Directors (excluding Members of the Audit and Supervisory Committee
and Outside Directors).

Cross-shareholdings
Policy on cross-shareholdings

Policy on determining the amount of executive remuneration, etc. and its calculation method

The Company holds shares of companies that it deems necessary to maintain and strengthen business relationships in light of the natureof transactions with business partners and the size and duration of transactions. The Company’s basic policy is to dispose of and reducecross-shareholdings, as soon as possible, when they are deemed to have little significance in holding them. Each year, the Board of
Directors closely examines whether the purpose of holding individual cross-shareholdings is appropriate and whether the benefits andrisks associated with holding them are commensurate with the cost of capital, and discloses the results of the verification in the Annual
Securities Report.

Director (excluding Directors serving as Members of the Audit and Supervisory Committee)

Policy on exercising voting rights in cross-shareholdings

Remuneration, etc. for Directors (excluding Directors Serving as
Members of the Audit and Supervisory Committee) of the Company
consists of basic remuneration (fixed remuneration) based oninternal regulations, as well as (excluding Outside Directors)
bonuses linked to short-term performance, and (excluding
Outside Directors) stock remuneration-type stock options linked tomedium- to long-term performance.
In order to conduct the management conscious of expanding
Group revenue, bonuses are calculated by multiplying consolidated
operating profit and consolidated profit before income taxes,
without consideration for the amount of size-based corporate taxes,
by a calculation rate based on the achievement of the numericaltargets for consolidated operating profit under the Medium-Term
Management Plan and a factor depending on rank for payment.
Remuneration for Directors (excluding Directors Serving as
Members of the Audit and Supervisory Committee) of the Company
was limited to a maximum of 300 million yen per annum (including
up to 30 million yen for Outside Directors) by resolution of theGeneral Meeting of Shareholders held on June 28, 2022. At thetime, six (6) Directors (excluding Directors Serving as Members of
the Audit and Supervisory Committee; including two (2) Outside
Directors) were subject to this resolution, but the limit of 300 million
yen per annum was calculated on the premise of a maximum of
eleven (11) Directors, which is the maximum number allowed
under the Company’s Articles of Incorporation. Remuneration in
the form of stock remuneration-type stock options was limited to aWith respect to the exercise of voting rights in shares held by the Company, the Company will review each proposal to determine whether
it contributes to the enhancement of the Company’s corporate value over the medium- to long-term, while respecting the management
policy of the relevant company, and make a comprehensive judgment.

Executive Remuneration System (Details of Remuneration)

41

Values and Strategies of Seika Corporation

maximum of 60 million yen per annum by resolution of the General
Meeting of Shareholders held on June 28, 2022. At this time, four (4)Directors (excluding Directors Serving as Members of the Audit andSupervisory Committee and Outside Directors) are subject to thisresolution, but the limit of 60 million yen per annum is calculatedon the premise of a maximum of eleven (11) Directors, which is
the maximum number allowed under the Company’s Articles ofIncorporation, reduced by the number of Outside Directors.
Under the decision policy described above, remuneration,etc. for Directors (excluding Directors Serving as Members of
the Audit and Supervisory Committee) of the Company is paid
based on regulations resolved by the Board of Directors after
extensive discussions, and within the limit approved by resolutionof the General Meeting of Shareholders. Remuneration, etc. for
Directors (excluding Directors Serving as Members of the Audit andSupervisory Committee) for the fiscal year under review is therefore
deemed to be in accordance with the decision policy describedabove.
In order to reinforce fairness, objectivity, transparency andaccountability, the Company has established the Compensation
Review Committee as a voluntary body under the Board of
Directors. A majority of the members of the Compensation
Review Committee are Independent Officers (Outside Directors).
Remuneration, etc. for individual Directors is decided by the Boardof Directors after deliberation and recommendations by theCompensation Review Committee.

Number of issues and amounts reported in the balance sheet
Number of issues

Total amount reported in the balance
sheet (Million Yen)

Unlisted stock

26

471

Shares other than unlisted shares

32

7,128

Issues whose number of shares increased in the fiscal year under review
Number of issues

Total acquisition cost for the increase in
the number of shares (Million Yen)

Reason for the increase in the number ofsharesUnlisted stock3

68

Necessity for operating activities

Shares other than unlisted shares

−

−

−

Issues whose number of shares decreased in the fiscal year under review
Number of issues

Total sale price for the decrease in thenumber of shares (Million Yen)

Unlisted stock2

5

Director serving as a member of the Audit and Supervisory Committee

Shares other than unlisted shares

7

1,373

Remuneration for Directors Serving as Members of the Audit andSupervisory Committee of the Company was limited to a maximumof 51 million yen per annum by resolution of the General Meeting of
Shareholders held on June 28, 2022. At the time, three (3) Directors
Serving as Members of the Audit and Supervisory Committee were
subject to this resolution, and the limit of 51 million yen per annum

Note: I ssues of shares other than unlisted shares includes decreases due to the additional acquisition of shares in TVE Co., Ltd. and transferring them to shares of subsidiaries andassociates.

was calculated on the premise of a maximum of four (4) Directors
Serving as Members of the Audit and Supervisory Committee, whichis the maximum number allowed under the Company’s Articles ofIncorporation.
Individual amounts are determined upon consultation with the
Directors serving as Members of the Audit and Supervisory Committee.

42Outline Vision

Compliance

Promotion System
We established a Compliance Manual as a basic guideline for practicing compliance, and we are working to improve awareness andunderstanding among all employees. In addition, We created a Compliance Managing Office under the direct control of the President,
which conducts compliance awareness activities, and the compliance status is verified by the Internal Audit Office.

The Company has established the Regulations of the Board of Directors, the Corporate Management Meeting Regulations, theRegulations on Various Sales Requests, etc. to clarify the authority associated with the execution of duties of Directors, Executive Officers
and employees, and to manage the risk related to the execution of these duties.
As for the risk management process, the Company has constructed systems to enable risk to be managed in accordance with the duties
and responsibilities of each division, based on the Organization Table. Business risks are managed by the Business Operation Division,
human resources and disaster risks are managed by the General Affairs & Human Resources Department, accounting and financial risks aremanaged by the Accounting Department, and system risks are managed by the System Planning Department. In addition, the following
departments and committees deal with individual risks to identify, respond to, and monitor risks. Risk management in each of thesedepartments is assessed for adequacy based on the advice of the Legal & Control Department.

Management System

Compliance items in the Compliance Manual
2. Compliance with Laws
01. Compliance with antitrust and related laws
02. Prohibition of unfair interest infringement against subcontractors
03. Prohibition of unfair trading of shares (Insider trading)
04. Security Trade Control
05. Respect for Intellectual Property Rights
06. Strict control of company information (including personal information)
07. Compliance with laws and regulations
08. Prohibition of the provision of benefits to anti-social forces
09. Prohibition of bribery
10. Prohibition of excessive business entertainment

Initiatives
Harassment prevention
We have established a Policy for Preventing Harassment with the understanding that it is our responsibility to ensure a healthy working
environment where people can build positive relationships based on mutual trust. In working to create a workplace free of harassment,
we have established a system with a whistleblower contact for responding appropriately to specific cases.
Policy for Preventing Harassment
4. This policy is subject to Directors, employees, etc. (Executive Officers,
special workers, employees, contract employees, dispatchedemployees, and part-time employees), people working at Group
companies as well as executives and employees of customers andsuppliers.
5. The Company has established a whistleblower contact for responding
to specific cases. Whistleblowers and those who cooperate withconfirming facts will not be treated unfairly.
 e will take strict action against harassers including disciplinary
6. W
action, based on our employment regulations. In addition, we willtake necessary measures to improve the victims’ working conditions
and workplace environment.

Education and awarenessTo improve compliance awareness and ensure that all employees are aware of the related regulations included in the Compliance Manual,
we strive to raise awareness through various training programs, seminars, awareness surveys, and various initiatives during complianceenhancement month.
Internal Reporting System
The Company has established Internal Reporting System Regulations to ensure early detection of noncompliance behavior and rules
regarding confidentiality of informants and prohibition of their disadvantageous treatment. Furthermore, we have established awhistleblower contact at the Audit and Supervisory Committee, which is independent of management, and at an outside law firm in
addition to the General Affairs & Human Resources Department and the Internal Audit Office under the direct control of the President, andwe have a system to ensure independence in terms of its operation.

43

Data Section

Basic Approach to Risk Management

We comply with laws, regulations, and company rules and conduct corporate activities in conformity with our management philosophy
and corporate ethics, according to the spirit set forth in our company precepts, Group Policy, and code of conduct, which are based on
our corporate philosophy, “Contribute to Society Through the Expansion of Business.” With this as our basic policy, we are working toensure compliance by implementing various measures and building systems to ensure the appropriateness of our operations.

1. The Group respects human rights and individuality, and creates anorganization that embraces diverse values of individuals.
2. The Group does not tolerate discriminatory language, harassing
behavior, acts of violence, or other behavior that undermines
individual dignity.
3. The Group prohibits the following harassing behavior:• Power harassment of any kind
• Sexual harassment of any kind
 arassment related to pregnancy, childbirth, childcare, or•Hcaregiving•H arassment that deteriorates the workplace atmosphere orinterferes with workplace order

Sustainability Strategy and GovernanceRisk management

Basic Policy

1. Compliance with employment regulations, etc.
01. Observe company rules and regulations
02. Prohibit concurrent employment
03. Prohibit sexual harassment
04. Prohibit power harassment
05. P rohibit leaks of company information (including personal
information)
06. Prohibit unjustifiable personal gain
07. Prohibit acts that go against the interests of the company

Values and Strategies of Seika Corporation

Individual Response Department

Roles and Overview

Sustainability Committee

Development, monitoring and risk assessment of sustainability strategies

Export Control Committee

Strengthen control systems for the appropriate implementation of security exports

Compliance Managing OfficeThorough compliance with laws and regulations

Legal & Control Dept.

Legal and credit management in business transactions and factual survey of business transactions

Business Operation Division(Business promotion Dept.)

Management of regulations in business transactions and deliberation on various sales requests

System Planning Dept.

Management of regulations regarding information systems and enhancement of information
security

General Affairs & Human
Resource Dept.

Enlightenment and guidance on safety activities in preparation for disaster, and activities toeliminate, prevent, and avoid risks in advance
Lead the Disaster Response Headquarters in the event of a disaster

Internal Audit Office

Audits of internal control and business processes in each department

In addition, risks identified with high importance are submitted and reported to the Board of Directors and the Corporate Management
Meeting. Company-wide risks and individual risks that may potentially affect the entire Company are handled by the Corporate
Management Meeting, which conducts comprehensive management through risk countermeasures, subsequent evaluation, etc. andholds prior discussions on matters to be submitted to the Board of Directors.
Regarding the company-wide or individual risk management system as mentioned above, the Internal Audit Office under the directcontrol of the President provides advice and recommendations to improve risk management systems through periodic auditing andmonitoring.

Information security
The Group recognizes the importance of information security as a trading company that promotes its business based on its relationships
with many stakeholders, and has established the Basic Policy on Information Security with the aim of protecting the Company’s
information assets, and constructs systems to handle these assets correctly and safely.
As we aim to further develop our business areas and expand our various initiatives with our business partners going forward, we believethat ensuring information security and mitigating risks are our biggest challenges. Therefore, the System Planning Department, under thesupervision of its General Manager, is taking the lead in strengthening information security, understanding and responding to the latest
trends in cyber-attacks, etc., and continuing to enhance information security education for employees. In addition to strengthening thesesoftware aspects, we will further review and improve management regulations to enhance the effectiveness of information security.

44

Outline Vision

Values and Strategies of Seika Corporation

Sustainability Strategy and Governance

Data Section

Data section

Summary of Financial Data Over 11 Years
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Operating results (Million Yen)
Total sales*1

136,670

126,487

132,033

127,101

150,742

165,585

157,145

140,677

136,27385,30793,311Gross profit

12,315

11,527

13,20912,614

14,655

14,58814,035

14,906

14,672

18,026

19,941

Operating profit

2,824

2,193

3,400

2,174

3,046

2,598

2,118

2,809

2,581

3,824

4,636

EBITDA

3,153

2,545

3,786

2,646

3,666

3,287

2,763

3,574

3,185

4,407

5,225

3,110

2,496

3,939

2,426

3,390

2,877

2,418

3,122

2,906

3,879

6,286

1,743

1,399

2,188

1,750

2,140

1,655

1,587

(1,262)

2,721

2,246

5,001

65,081

72,474

77,41489,427

118,254

98,47085,742

92,66897,458104,865

79,990Ordinary income
Net profit*

4

Financial conditions (Million Yen)
Total assets
Total liabilities

42,00847,86949,82562,941

89,613

69,481

56,67566,75767,56873,76444,254

Total net assets

23,072

24,60527,58926,48628,641

28,98829,06625,911

29,88931,10135,736

Cash flows (Million Yen)
Net cash provided by operating activities

2,547

1,088

2,115

935

3,566

1,339

(734)

3,400

4,137

4,971

(731)

Cash flows from investing activities

287

(855)

626

(1,823)(1,262)126(1,127)(299)(1,566)

1,125(1,068)(4,816)

Cash flows from financing activities(1,154)

(524)

(516)

(1,393)(1,465)(1,706)(559)(1,211)(1,903)(3,304)

Closing balance of cash and cash equivalents

13,302

13,32015,65013,15914,157

14,096

11,506

13,346

14,03517,00010,653

Free cash flow*6

2,834

233

2,741

(888)

2,304

1,465

(1,861)

3,101

2,571

6,096

(1,799)

Capital investments (acquisition cost of tangible and intangible
assets within investment cash flow)

(333)

(663)

(441)

(876)

(1,726)

(585)

(427)

(448)

(614)

(525)

(2,441)

Depreciation

292

283

351

415

420

444

422

544

365

437

491

23.56

19.58

31.66

25.66

32.26

128.38125.50(100.73)221.87186.85415.79

6

7

11

9

11

35

45

45

45

65

90

316.64353.13394.42388.87433.21

2,245.33

2,246.34

2,058.12

2,365.06

2,516.57

2,907.20

1.99

1.89

4.48

4.96

Per share data(yen)*3
Profit per share
Annual dividend per share
Net assets per share
Financial indicators
Operating profit ratio(%)*1

2.07

1.73

2.58

1.71

2.02

1.56

1.34

1

2.31

2.01

2.87

2.08

2.43

1.98

1.75

2.54

2.33

5.16

5.59

Net profit ratio (%)*1

1.28

1.11

1.66

1.38

1.42

0.99

1.00

(0.89)

1.99

2.63

5.35

Return On Assets(%)

2.6

2.0

2.9

2.1

2.1

1.5

1.7

(1.4)

2.9

2.2

5.4

EBITDA margin (%)*

Return On Equity(%)

7.8

5.9

8.5

6.6

7.9

5.9

5.6

(4.7)

10.0

7.6

15.4

Total asset turnover ratio (times)

2.06

1.84

1.76

1.52

1.45

1.52

1.70

1.57

1.43

0.84

1.00

Financial leverage(times)

2.85

2.97

2.84

3.43

4.18

3.45

3.00

3.64

3.32

3.45

2.27

Debt to equity ratio (times)

0.33

0.34

0.31

0.34

0.31

0.31

0.32

0.35

0.26

0.18

0.06

Shareholder’s equity ratio (%)

35.13

33.68

35.22

29.18

23.90

28.94

33.32

27.45

30.03

28.97

44.02

Interest coverage ratio (times)

27.94

21.92

30.15

19.83

29.06

24.00

17.88

25.36

19.21

50.02

143.91Dividend ratio(%)

24.8

34.6

34.8

34.5

33.5

42.8

35.9

−

20.3

34.8

21.6

Number of employees at the end of the period (people)

690

658

655

762

836

896

958

971

969

977

1,012

Number of consolidated subsidiaries (companies)

10

10

11

14

16

16

15

15

16

16

16

Number of equity-method affiliates (companies)

3

3

3

4

4

4

4

4

4

4

5

72,208,969

69,128,376

69,122,380

67,112,276

65,103,561

12,637,120

12,657,613

12,262,745

12,265,772

11,962,850

12,037,118

Scopes 1 and 2 CO2 emissions per transaction value(Kg per million yen)*5

2.18

2.39

1.51

Scopes 1 and 2 CO2 emissions per sales (Kg per million yen)*2*5

4.13

3.76

2.85

Other information

Number of outstanding shares at the end of the period(excluding number of treasury shares at the end of the period)(shares)*3
Non-financial indicators

Composition of transaction value for green innovation(consolidated) (%)
Female manager ratio (%)
Paid leave utilization rate (%)

45*1 The “Accounting Standard for Revenue Recognition” and other standards have been applied from FY2021. Therefore, the figures are different from those of FY2020.
*2 CO2 emissions per sales for FY2020 are calculated based on net sales of 71,933 million yen, retrospectively applying the “Accounting Standard for Revenue Recognition.”*3 E ffective October 1, 2017, the Company implemented a reverse stock split to change the number of shares in each share unit from 1,000 to 100. Therefore, the figures for FY2017 onward arethose affected by the reverse stock split.

54.85
3.73

4.33

4.25

3.91

5.92

46.90

49.40

56.40

59.00

67.00

*4 From FY2015 onward, profit attributable to owners of parent.
*5 The scope of GHG emissions from FY2020 to FY2022 only includes Seika Corporation.
*6 Free cash flow is the sum of cash flows from operating activities and cash flows from investing activities.
*7 Figures are rounded down to the nearest one million yen.

46

Outline Vision

Company Outline
Overview of the GroupOct 1, 1947

Capital6,728 million yen

OfficeNumber of
employees

Sustainability Strategy and Governance

Data Section

Stock Information(As of September 30, 2023)

Date ofestablishment

Values and Strategies of Seika Corporation

Executive Officer(As of June 27, 2023)

President and CEOP rincipal offices of the Company
Head Office: Chiyoda-ku, Tokyo
Branch office: Osaka City
 agoya City, Hiroshima City, Fukuoka City andOther branches: Nother major cities in Japan and overseasP rincipal offices of subsidiaries
NIPPON DAIYA VALVE CO., LTD. (Shinagawa-ku, Tokyo)
Seika Digital Image CORPORATION (Bunkyo-ku, Tokyo)
Shikishimakiki Corporation (Sapporo-shi,Hokkaido)
Seika Daiya Engine Co.,Ltd. (Shinjuku-ku, Tokyo)
Seika Sangyo GmbH (Germany)
Tsurumi (Europe) GmbH (Germany)
Tsurumi France S.A.S. (France)
HYDREUTES, S.A.U. (Spain)
Marine Motors & Pumps N.V. (Belgium)
Tsurumi UK Limited (United Kingdom)
Tsurumi Pumps UK Ltd. (United Kingdom)
SEIKA MACHINERY, INC (U.S.A.)
SEIKA (SHANGHAI) CO.,LTD. (China)
TIANJIN DAIYA VALVE CO., LTD. (China)
Seika Sangyo (Thailand) Co., Ltd. (Thailand)
SEIKA SANGYO (VIETNAM) COMPANY LIMITED (Viet Nam)

Akihiko Sakurai

Overview of shares(As of September 30, 2023)

Number of shareholders and shares

Major Shareholders

Senior Managing Executive Office

Yasumasa Kawana

Total number of shares authorized to be issued

37,705,800 shares

Managing Executive Officer

Hirohisa Masuda

Number of shares outstanding

12,320,650 shares

Senior Executive Officer

Tomoaki Hasegawa

Outside Director

Kiyomi Miyata

Outside Director

Masanori Kagami

Audit & Supervisory Committee

Masanori Abe

Outside Director
Audit & Supervisory Committee

Yuko Shirai

Outside Director
Audit & Supervisory Committee

Yoshihiko Nakamura

Senior Executive Officer

Noriyuki Takahashi

Senior Executive Officer

Tatsuhiko Nojiri

Executive Officer

Kazutoshi Usui

Executive Officer

Akira Yumen

Executive Officer

Yuji Honda

Executive Officer

Susumu Koide

Executive Officer

Katsumi Nakamura

Treasury Stock (1)Financial Instruments (20)

1.98%

23.02%

244 thousand shares

2,835 thousand shares

Individuals andOthers (7,300)

Status of Sharesby Shareholder

3,661 thousand
sharesNumber ofholding shares(Thousand shares)

Ratio
(%)

7,544

Number of shareholders

29.72%Name of shareholders

Financial Instruments
Business (31)1.88%

231 thousand shares
Foreign
Corporations (93)Other Companies (99)9.57%

33.83%

1,179 thousand shares

4,168 thousand shares

Note: Figures less than one thousand shares are rounded down.

The Master Trust Bank of Japan, Ltd. (Trust Account)

1,006

8.33

Hikari Tsushin K.K.

891

7.38

Mitsubishi Heavy Industries, Ltd.

612

5.07

UH Partners 2, Inc.

593

4.91

MUFG Bank, Ltd.

400

3.31

Yamaguchi Bank, Ltd.

352

2.92

Mitsubishi Electric Corporation

286

2.37

Custody Bank of Japan, Ltd. (Trust Account)

280

2.33

Tsurumi Manufacturing Co., Ltd

267

2.21

Sumitomo Mitsui Banking Corporation

234

1.94

Note:Figures less than one thousand shares are rounded down.
The Company holds 244,265 treasury shares, which are excluded from the above list ofmajor shareholders. In addition, ratio of holding shares is calculated excluding treasury
shares.

1,012(consolidated)
316(non-consolidated)

Changes in stock price
Tsurumi-Intec Pump AB
Stock price

VolumeSeika Sangyo GmbHTsurumi(Europe)GmbH

Stock price (Yen)

Marine Motors & Pumps N.V.

3,000

15,0002,400

12,000

1,800

9,000

1,200

6,000

600

3,000

Volume (Thousand shares)

Tsurumi Pumps UK Ltd.
TIANJIN DAIYA VALVE CO., LTD. (China)

Tsurumi France S.A.S.

Seoul Branch
HYDREUTES, S.A.U.

SEIKA (SHANGHAI) CO.,LTD.
Taipei Branch
Seika Sangyo(Thailand)Co., Ltd.

SEIKA MACHINERY, INC.
Atlanta Office
SEIKA MACHINERY, INC.

SEIKA SANGYO(VIETNAM) COMPANY LIMITEDNDV(Thailand)Co., Ltd.

Wakasa Branch
Ohi Office
Takahama Office

SEIKA MACHINERY, INC.
San Francisco Office

Viet Nam Office

Genden Tsuruga Office
Mihama Office
Tsuruga Branch

Shikishimakiki Corporation
Sapporo Office

Okayama Branch
Fukuyama Branch
Higashihiroshima Branch
Hiroshima Branch
Misumi Satellite OfficeTokuyama Branch
Yamaguchi Branch

Muroran Branch

Kitakyushu Branch
Fukuoka Branch
Genkai Office
Nagasaki Branch
Sendai OfficeNobeoka Branch

Akihabara Office

Our website
NIPPON DAIYA VALVE CO., LTD.
Seika Digital Image CORPORATION
Seika Daiya Engine Co.,Ltd.

Nagoya Branch
Osaka Branch

Shikoku Branch
Yawatahama Office
Oita Branch

47

Chiba Satellite Office
Head Office

0

0
2018

2019

2020

2021

2022

2023

Changes in dividends per share (annual)(Yen)

https://seika.com/en/

FY2018FY2019FY2020

FY2021

FY2022

Our website provides the latest news,
IR information, etc.

45

45

45

65

90

48