（Issue code: Tokyo Stock Exchange Prime 5957）

Results Briefing forthe fiscal year ended
December 2023

■ Explained by
Makoto Araga, President

Contents
１．Summary of Financial Results
for the Fiscal Year Ended Dec
31, 2023

３．Forecast for the Fiscal YearEnding Dec 31, 2024

Summary of Financial Results

Forecast for the Fiscal YearEnding Dec 31, 2024

Overview of Results by Segment

Shareholder Returns

２．Progress of the Medium-TermBusiness plan
Progress of the Medium-term
Business plan “Mission G-second”
Actions to achieve management witha focus on cost of capital and stock price
Growth #1 Business Expansion Strategy

４．Appendix
Balance Sheet
Cash Flow Statement

Capital Expenditures,
Depreciation and R&D Expenses
Management Approach

Growth #2 Environmental Strategy
Growth #3 Human Resource Strategy
Growth #4 Financial Strategy©2024 NITTOSEIKO CO., LTD.

1

１．Summary of Financial Results
for the Fiscal Year Ended Dec
31, 2023©2024 NITTOSEIKO CO., LTD.

2

Summary of Financial Results
2022/122023/12 Results

2023/12
YoY

Unit: Million yen / %Full Year
AmountCompared to forecast

Full Year

Ratio

Amount(%)(as of Nov. 14. 2023)

Ratio

Amount(%)

change% Change

Forecast

Amountamountchange45,000

△ 255

△ 0.6

% Change

Net sales

44,021100.0

44,744

100.0

722

1.6

Gross profit

10,377

23.6

10,183

22.8

△ 194

△ 1.9

7,445

16.9

7,568

16.9

123

1.7

Operating income

2,931

6.7

2,614

5.8

△ 317

△ 10.8

2,600

14

0.5

Ordinary income

3,235

7.3

2,835

6.3

△ 399

△ 12.4

2,800

35

1.3

3,194

7.3

2,830

6.3

△ 363

△ 11.4

1,828

4.2

1,734

3.9

△ 94

△ 5.1

1,700

34

2.0

49.5

-

46.95

-

-

-

46.01

Selling, general and administrative
expenses

Net income for current period before
income taxes
Net income attributed to shareholdersof the parent company

Net income per share (yen)Main points⚫

KM SEIKO Co., Ltd. and Pinning Co., Ltd., which became consolidated subsidiaries in April 2022, and Nittoseiko
Analytech Europe GmbH, established in Germany in April 2023, contributed to business performance. In addition, salesof fastener products for the automobile, housing, and construction industries, and control products such as analytical
instruments for the chemical and pharmaceutical industries showed growth, resulting in a 1.6% YoY sales increase.

Operating
Income⚫

Operating income declined 10.8% YoY due to the significant impact of sluggish orders caused by the slowdown of the
U.S. and Chinese economies, despite sales price revisions and cost reductions in both production and sales operations in
response to soaring resource and raw material prices.

Overseas⚫

Overseas sales declined slightly due to the slowdown of the U.S. and Chinese economies as well as prolonged inventory
adjustments by customers in Southeast Asia.

Net Sales©2024 NITTOSEIKO CO., LTD.

3

Summary of Financial Results - Net Sales▌Analysis of Net Sales

MillionYen▌Change in net sales by segment
MillionYen

Business
Expansion
Change in
sales

Price
pass-on©2024 NITTOSEIKO CO., LTD.

KM SEIKO Co., Ltd., Pinning Co., Ltd.
and Nittoseiko Analytech EuropeGmbH contributed to businessperformance.
Sales decreased due to the slowdownof the U.S. and Chinese economies
and prolonged inventory adjustment bycustomers in Southeast Asia, despite
strong sales in the automobile andchemical/ pharmaceutical industries.
Efforts to promote price pass-on in
response to soaring material costs
encountered difficulties.
4

Summary of Financial Results - Operating Income▌ Analysis of Operating Income

MillionYen▌Change in Operating Income by segment
MillionYen©2024 NITTOSEIKO CO., LTD.

Material
cost

Efforts to promote price pass-on in
response to soaring material costs
encountered difficulties. Material
cost increased by 1.7% YoY, up 493
million yen.

Material
cost and
SG&A
expenses

Energy cost increased by 7.6% YoY,
up 69 million yen.

Business
Expansion

KM SEIKO Co., Ltd., Pinning Co., Ltd.
and Nittoseiko Analytech EuropeGmbH contributed to businessperformance.
5Overview of Results by Segment - Fastener Segment
MillionYen

MillionYen

Net Sales

Operating Income

32,199 32,855
24,903 23,366

1,545

27,896

1,648•

Net sales increased due to strong demand
from the housing and construction sectors
in North America, in addition to themainstay automotive sector.
Operating income decreased due to difficult
negotiations to pass on higher prices forenergy and subsidiary materials, despite
efforts to improve efficiency and reduce
costs by consolidating manufacturing plants.

1,625

•

2019

2020

2021

2022

2023

548

557

2019

2020

2021

2022

▌Net Sales by Industry
Unit: Mil yen/ %Net sales
Automobile2022/122023/12Full Year

Full Year

AmountAmount32,19932,855▌Net Sales by Region
YoY
Amount656% Change

1,538

13.5

6,926

7,466

540

7.8

5,191

4,588

△ 602

△ 11.6

2,775

2,140

△ 635

△ 22.9

1,603

1,254

△ 348

△ 21.7

electronic parts

Household goods
IT and digitalequipment
Precision

1,142

1,098

△ 44

△ 3.9

Medical

323

289

△ 34

△ 10.6

Others

2,817

3,061

244

8.7

equipment©2024 NITTOSEIKO CO., LTD.

East Asia,

2.0

12,955construction
Electrical andNorth America+330Mil Yen

2023

11,417

Housing and2023

Japan,
72.2%

9.7%

OverseasSoutheast

27.8%

Asia, 14.6%

North
America,
3.4%
Others, 0.1%

2022
East Asia,

Japan,
71.2%

Overseas
28.8%

10.1%
North
Southeast
America,
Asia, 16.1%
2.4%
Others,0.1%

6Overview of Results by Segment – Assembly Machine Segment
MillionYen

MillionYen

Net Sales

Operating Income

•

1,904

7,800

7,182

1,608
6,515

5,454

1,227

5,955
911

822

•

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

▌Net Sales by Industry
Unit: Mil yen/ %▌Net Sales by Region

2022/122023/12Full Year

Full Year

AmountAmountNet sales
Automobile
Electrical andelectronic parts
AmusementmachineEnergy sector
Housing andconstruction
IT and digitalequipment

Others©2024 NITTOSEIKO CO., LTD.

6,515

Net sales decreased due to sluggish orders,
especially in the U.S. and China, with increasing
uncertainty in the global economy pushing down
the appetite for capital investment, despite growing
momentum for automation against a backdrop of
demand for electrification and labor shortages.
Operating income decreased due to lower orders
for special machines and low orders in the U.S.,
despite efforts to pass on selling prices of standard
machines.

5,955

2023

YoY
Amount

△ 559

North

% Change

△ 8.6

3,889

3,410

△ 479

△ 12.3

789

1,026

237

30.0

64

212

148

230.3

327

199

△ 127

△ 38.8

134

180

45

33.4

147

178

30

20.4

Japan,

Overseas,

East Asia,

69.2%

30.8%

13.3%

America,
11.1%

Southeast
Asia, 5.1%

Europe,Others, 0.5%

0.9%

2022
North

Japan,

Overseas,

East Asia, America,
15.6%
11.8%

66.1%

33.9%

Southeast
Asia, 5.0%

1,163

748

△ 415

△ 35.7

Europe,Others, 0.5% 0.9%7Overview of Results by Segment – Control System Segment
MillionYen

Net Sales
5,416MillionYen

Operating Income
278

5,915

5,296

156

143

4,010

157

•

2,152

2019

•

2020

2021

2022

2023

2019

-164
2020

2021

2022

▌Net Sales by Industry
Unit: Mil yen/ %2022/122023/12Full Year

Full Year

AmountAmountNet sales
Chemical andpharmaceuticals

5,296
1,183

5,915
1,412

▌Net Sales by Region
2023

YoY
Amount

619
229

19.4

47

5.6

548

438

△ 109

△ 20.0

304

414

110

36.2

Automobile

367

411

44

12.0

Ship building

284

306

22

7.8

Environment

272

268

△4

△ 1.6

Medical

133

181

47

35.7

Others

1,349

1,580

231

17.2

construction
Electrical andelectronic parts©2024 NITTOSEIKO CO., LTD.

America, Europe,

11.7

900

Housing andNorth% Change

853

Energy sector

2023

Both net sales and operating income
increased due to strong demand forflowmeters, and increased sales ofanalyzers at new branches in Europe.
sales of analyzers increased due to arecovery in demand and the resolutionof parts shortages after the corona
pandemic.

6.6%

Japan,

Overseas,

East Asia,

64.9%

35.1%

10.8%

8.5%
Others,5.8%Southeast

Asia, 3.5%

2022
North

Japan,

Overseas,

69.2%

30.8%

Europe,America,
7.6%
5.6%
Others,East Asia,
5.2%
8.9% Southeast
Asia, 3.6%

8

２．Progress of the MediumTerm Business plan

©2024 NITTOSEIKO CO., LTD.

9

Progress of the Medium-term Business plan
“Mission G-second”
Net Sales(Million Yen)

NITTOSEIKO Mission “G”

60,00040,00034,85732,904

2,596
20,000Mission G-second

Gro
wth
#2
Envir
44,74444,021
onm
40,518
ental
Strat
plan
egy
3,249
2,614
2,931

80,000Operating
Income(Million Yen)

5,160
4,000

plan
2,000

1,303

0

0
2019

Growth #1

Net Sales
Operating
IncomeGrowth #3
Labor
productivity（Compared to 2022）

Engagement
score

6,000

60,000

2020

2021

2022

2023

2024

2025

Business Expansion Strategy
Result FY2023

Target FY2025

44.7 B yen

60 B yen

2.61 B yen

5.16 B yen

Human Resource Strategy
Result FY2023

Target FY2025

＋0.3％

＋24％

3.6P

3.8P or more

©2024 NITTOSEIKO CO., LTD.

CO₂ emissions（Compared to 2019）

Waste（Compared to 2019）

Result FY2023

Target FY2025▲16.8％▲12％▲19.0％▲5％

Growth #4

Financial Strategy

Result FY2023

Target FY2025

ROIC

5.3％

8％ or more

ROE

5.5％

9％ or more
10

Analysis of Cost-of-Capital Management
Issue①Operating income ratio
High product costs and market
competition have resulted in
weak operating income ratios.

②Return-on-capital ratio
Return on capital is below costof capital (WACC 6.7%) anddeviates from market
expectations

ActionTarget- Invest strategically in growthmarkets- Improve management
efficiency- Expand into new businesses

Achieve the target
operating income
margin of 8.6%
since 2019.

- Use management resources
effectively- Pursue investment returns- Reduce capital cost

Early realization of
ROE９％
ROIC８％③Dialogue with the capital market
Dialogue with the capital market
needs to be enhanced andintensified to further increase
corporate value.

- Stable dividend payout ratio- Enhance dialogue withshareholders- Enhance disclosure in English

Achieve andmaintain a P/Bratio of 1.0x or
more

Implement initiatives for each of the 3 issues
in the 4 key strategies of Medium-Term Management Plan Mission G-second©2024 NITTOSEIKO CO., LTD.

11

Actions to achieve management with a focus oncost of capital and stock price
4 key strategies of Mission G-second
Action①Operating income ratio- Invest strategically in growthmarkets- Improve management efficiency- Expand into new businesses②Return-on-capital ratio- Use management resources
effectively- Pursue investment returns- Reduce capital cost

③Dialogue with thecapital market

Growth#1

Growth#2

Growth#3

Business Expansion
Strategy

Environmental
Strategy

Human Resource
Strategy

Financial Strategy‐ M&A leading to expansionof business segments‐ Develop new overseas
accounts‐ Strengthen intellectual
property strategy‐ Entry into newenvironmental businesswith core technologies‐ Strengthen developmentof high value-added
environmental products‐ Strengthen investmentin the education andtraining of global
human resources‐ Analyze return on
investment in businessexpansion‐ Reform the Group's
production system andsupply chain with afocus on QCD‐ Measures to achieveboth improved
production efficiency
and reduced GHG
emissions‐ Strengthen capital costmanagement
capabilities‐ Strengthen groupmanagement
capabilities‐ Enrich ESG-related
disclosures‐ Reinforce IR handlingorganization structure‐ Disclosure of issues
and initiatives, as well
as targets and results,
for each segment- Stable dividend payout ratio- Enhance dialogue withshareholders- Enhance disclosure in English

Market Valuation

800

1.00

600

Cost of Capital

1.50

0.61

0.59
0.59

200

7.5

641

448

650

493

526

2019

2020

2021

2022

2023

0

0.50

0.00

Ending stock price(yen)©2024 NITTOSEIKO CO., LTD.

2025
(Plan)
Ending PBR(times)‐ Progressive dividend
payments during theperiod of the mediumterm management plan
‐ Acquisition of treasury
stock in response tochanges in surplus
funds

60,000
6.1

0.82

400

‐ Use CMS to reduce
debt and use of capitalefficiently‐ Utilize ROIC indicatorsfor efficient andstrategic use of capital

Revenue
9.0

7.8

1.00

0.89

Growth#4

5.4

2.9

6.1

5.7

5.5

8.0

WACC
6.7%

5.3
2,596 1,303 3,249 2,931 2,614

2.52019 2020 2021 2022 2023
ROE（％）

34,85732,90444,74444,021
40,5182025(Plan)ROIC（％）

5,160

2019 2020 2021 2022 2023

2025
(Plan)Net Sales
Operating Income(Million Yen)

12▌Growth#1
Business Expansion Strategy
Growth#1 Business Expansion Strategy（Million Yen）

Result FY2023

Result FY2022

Target FY2025

YoY

Net Sales

44,021Net Sales

44,744

1.6％

Net Sales

60,000Operating
Income2,931

Operating
Income2,614▲10.8％

Operating
Income5,160

Result FY2023

Target FY2025（Compared to 2022）（Compared to 2022）

Annual average

Growth rate

2.0％

Operatingincome ratio▲0.2ptAssembly
MachineBusiness

Growth rate

▲8.6％

Operatingincome ratio▲5.0ptControl
SystemBusiness

Growth rate

11.7％

Operatingincome ratio＋1.7pt＋1.7ptMedicalBusiness

Progress/
Target・Efforts to bring Mg
implants to market
・Product development,
sales promotion

・Commercialization
・Market launch

Fastener
Business©2024 NITTOSEIKO CO., LTD.

11.0％
＋1.5ptAnnual average

25.6％＋1.2ptAnnual average

11.3％

Comment
•
•
•

•
•

•
•
•
•

Business expansion through M&A.
Secure demand in the automobile, housing,and construction sectors.
Decrease in profit due to difficult negotiations
to pass on higher prices for energy andsubsidiary materials.
Sluggish capital investment in the mainstay
automobile industry.
Decrease in profit due to lower orders for
special machines and low orders in the U.S.
Orders increased due to the establishment of aEuropean base.
Profitability improved from 1Q due to pricetransfer.
Obtained a Japanese patent for “High purity biosoluble magnesium for medical use”.
Preparations underway for clinical trials andcommercialization.

13

▌Growth#1
Business Expansion Strategy
Result by
Growth Target

Fastener

CASE-related
business

Non-Japanesecompanies

ASSY productdemandTarget FY2023

15.0%

2.2%

5.6%

3.7%

Result FY2023

19.6%

2.0%

4.4%

3.5%

Sales ratio

CASE-related business

Expandindustries

7,280Mil Yen• The number of gasoline-powered vehicles is expected to increase until 2035. Sales ratio target 15.0%⇒ Result 19.6%
CASE-related sales→Stable sales to existing customers are still in view.
• Focus on business activities to increase overseas sales ratio whilst keeping an eye on the spreadof EVs and FCVs in emerging countries.

AKROSE HYBRID(Ref.)Percentage forecast of global vehicle types
GasolineNon-gasolinepowered vehicles
powered vehicles

：

2023

9：1

2033 7.5：2.5
2050

6：4
Source: IEA Energy Technology Perspectives2015

ASSY productdemandUsed for EV on-board batteries→ EV adoption creatinga favorable trend

Bolts for caulking to
reduce warpage andburr when fastening
thin plates. For
automobile parts
that are becoming
lighter.

Non-Japanese companies
TOYO ATSUZO’s Bolts

Began selling hybrid parts combining theGroup's press products and fastening
parts for the automobile market.
Enhancing product proposals for otherhybrid parts. Aim to improve profitability
as a high-value-added product.

SHINWA SEIKO’s Pressed products©2024 NITTOSEIKO CO., LTD.

Atomic-level joiningof multiple metals
for cost reduction,
increased
functionality,
etc.

JOISTUD

Orders for CP GRIP increased for electronics
and automobiles to non-Japanese companies
in Korea.
CP GRIP
Prevent board shorts
caused by powder during
fastening as more
Mil Yen advanced control devices,such as for auto-drive,（+32.3％） are being developed.

YoY（Korea）

+28

14

▌Growth#1
Business Expansion Strategy

Fastener

Expand industries
Make housing and construction the second
pillar of our business after automobiles

Increase proportion of high valueadded products

Looking to expand both ZEH and the renovation market① Increase
proportion of coldheaded products*ZEH = Net Zero Energy House

2015

2016
Kyoei Seisakusyo
Co., Ltd. becomesa subsidiary.

…

2022

2023

KM SEIKO Co.,
Ltd. and PinningCo., Ltd. become
subsidiaries.

Screw Breakdown
Micro screws

Screw

2023

2015

② Increase proportionof micro and original
products

AutomoOthers,50%

bile,

Others,38%

38%

Automobile,

39%
Housing andHousing andconstruction,

Cold
HeadedProducts

GIZATITE
ALUMITITE

construction

12%

, 23%

Housing and construction

Housing and construction

12%

23%

2,010Mil Yen

3.7x
in 8 years©2024 NITTOSEIKO CO., LTD.

7,467Mil Yen

Micro screws

Screw
UP
Cold
HeadedProducts

UP
UP
GIZATITE
ALUMITITE
15

▌Growth#1
Business Expansion Strategy
CASE-related
business

Fastener

Assembly
Machine

13rd

AUTOMOTIVE WORLD
PeriodJan 25-27, 2023
Place
TOKYO BIG SIGHT
Participants Approx. 74,000
Companies Approx. 1,400‐ Proposed comprehensive solutions including
CP GRIP, anti-contamination screw fastening
machine, inspection and sorting equipment,etc.
‐ Demonstration of press-fitting experience andevaluation of chip adhesion property.
‐ PR for a wide lineup of Group products,
including bolts and pressed products

Synergy among NITTOSEIKO Group→Received inquiries from 52% of booth visitors©2024 NITTOSEIKO CO., LTD.

EV／LIB businessControl
SystemSMART ENERGY WEEKKANSAI 2023
PeriodNob 15-17, 2023
Place
INTEX OSAKA
Participants Approx. 12,000
Companies Approx. 180‐ PR efforts toward rechargeable battery
manufacturers, next-generation vehicle
manufacturers, and electronics manufacturers.
‐ Demonstration of the new MISTOL AI‐ Nittoseiko Analytech Co., Ltd. also exhibitedand proposed solutions including analyticalequipment.

Established a relationship with a non-Japanesetrading company headquartered in Germany→Expand relationship to group companies
16▌Growth#1
Business Expansion Strategy
Non-Japanesecompanies

PeriodMar 21-23, 2023
Place
Messe Stuttgart(Germany)
Participants Approx. 11,000
Companies Approx. 1,000

Assembly
MachineFastener

PR focusing on European automobile,electrical and electronics manufacturers.

EuropeYear 2022

Year 2023

From year 2024

NX driver T3 series CE
compliant

Product expansionof CE models

Market Research
Trade show
exhibitions

HANNOVER MESSE

January : Cooperative Robot Partially CE
compliantStrengthened relationships with European trading
companies and established business routes

Fastener Fair Global

October: International Supplier Fair (Planned)

Sales expansion of European parts suppliers
Establishment of Europe
OfficeBusiness development ofEuropean trading companies

Office expansion

Trade Show Exhibition Plan in 2024 → PR targeting non-Japanese companies

U.S.

Apr 30-May 2ASSEMBLY SHOW
SOUTH

China/
TaiwanSoutheast
Asia©2024 NITTOSEIKO CO., LTD.

Jun 5-7
Taiwan International
Fastener Show

Oct 8-10
Battery Show

Oct 22-24
ASSEMBLY SHOWAug 2-4（China）
New Energy Auto Technology and Ecological EXPO 2024
Nov（Thailand）
METALEXDec
MANUFACTURING
INDONESIA
17▌Growth#1
Business Expansion Strategy
Result by
Growth Target

CASE-related
business

Non-Japanesecompanies

Target FY2023

25.4%

11.2%

33.6%

7.2%

Result FY2023

20.7%

12.2%

28.0%

6.7%

Sales ratio

CASE-related
business
Provide solutions to customers with anticontamination screw fastening machines tomeet the demand for computerizationaccompanying advancement of CASErelated businesses.

1,608Mil Yen
Sales ratio target 25.4%⇒Result 20.7%
CASE-related sales

Non-Japanesecompanies
Received orders for large EV-related projects,
mainly for South Korea.
In addition, we are expanding sales in Europe
along with the fastener business.

YoY（Korea）+175Mil Yen（+56.1％）©2024 NITTOSEIKO CO., LTD.

Assembly
MachineOverseas
sales

Expand businesssectors

Overseas sales
Focusing on the European market,
the Company is proceeding withCE marking, RoHS, etc., which
will serve as the foundation of its
business.
In addition, we will enhance the product lineup with afocus on specific countries.

Expand businesssectors
Developed a lightweight singleaxis screw fastening unit with adownsized robot that
contributes to CO2 reduction
with lower power consumption.
We will continue to focus on
introducing new products that
contribute to reducing
environmental impact.

Weight 30%Down⇩
Contribute to
CO2 reduction18▌Growth#1
Business Expansion Strategy
Result by
Growth Target

Control
SystemEnvironment
business

Semiconductor/
Food market

Overseasground survey

Target FY2023

4.5%

0.2%

1.3%

4.8%

Result FY2023

4.5%

1.2%

0.0%

3.6%

Sales ratio

Semiconductor/
Food market

Overseas groundsurvey business

A wide variety of flowmeters to precisely meet the needs ofthe field. Among them, high-performance mass/magnetic/
ultrasonic flowmeters guarantee reliability.
Development of a new product with a larger measurement
range and higher accuracy than the conventional product isongoing.
Sales related to semiconductor/foodYenSales ratio target 0.2%⇒Result

77Mil

1.2%

EV／LIB business
MISTOL AI
Released a new AI-equipped model in theinspection and sorting equipment MISTOL
series. It enables higher-performance partsinspection and contributes to automation,
especially in the automobile industry.
©2024 NITTOSEIKO CO., LTD.

EV/LIBbusiness

As the next step for the industry standard product,with a dominant market share in Japan, we aim topromote it in Southeast Asia, focusing on the Thai
market.
The "liquefaction determination
method using SDS test results"
has been approved by a third-party
review organization, andexpectations are high for its use indisaster mitigation.

Exhibited at EV and LIB
related trade shows for PR.
The automatic powder
resistance measurement
system is ideal forevaluation of electronicmaterials such as electrodes
for batteries, which is a
growing field.
19▌Growth#1
Business Expansion Strategy
Growth#1

Control
System• Business partnership leading to expansion of business segments

Development of organic solvent recycling andrecovery equipment

Environment businessAugust 11, 2023 Launched a business alliance with eSep Inc, which has “Membrane separation technology”.

Commercialization toward a carbon-neutral society▌Features

Sales plan: from2025 approx. 120 million yen /year••

Improved recycling recovery.
Reduced energy consumption byeliminating the need for conventional
recycling processes (combustion anddistillation) due to reduced liquid
waste.

••

Reduced energy cost
Reduced CO2 during recycling
collection-Plant manufacturing technology-Fluid control technology-Explosion-proof technology-Membrane separation technology-Filter manufacturing technology

Comparison with conventional process
Carbonoffsetting

Distillation Type

ReduceCO2

CarbonneutralDecarbonization
Organic Solvent Recycling Equipment*Image©2024 NITTOSEIKO CO., LTD.

Absorption Type

Membrane Type◎

Facility Size

Large

×

Medium, multiple

△

Small

Operability

Continuous process〇

Batch process△

Continuous process〇

Energy Consumption

Major consumption

×

Medium△Most energy-efficient

◎

Large

×

Medium

△

Small

◎

Total Cost
Market Share
Cons
Overall Evaluation

50%
Cannot use heatsensitive materials
×

〇
×

30%
Decrease in adsorbent
performance△△△

Preparing forCommercialization

Cost of membrane

△
△

〇

20

▌Growth#1
Business Expansion Strategy

MedicalState of progress

World's first!

Development

High purity, bio-soluble
magnesium for medical use
Obtained aJapanese patent（June 2023）
Biodegradable medical device
Patent No.: 7301490

Fracture treatment implants

Non-clinicaltest

Clinicaltrial

Application

Approval

Start ofsales

Development status⚫ Non-clinical study initiated at a university hospital⚫ Research presentations at various academic conferences
・Oct 2022 Collaboration with Dr. Yoshinobu Oka, Kyoto Prefectural
University of Medicine
・Nov 2022 Member of Medical New Business Department⚫ Biological safety and non-clinical studies are underway.
⚫ Currently selecting implants suitable for these studies.
⚫ System development for QMS, bioethics, information
disclosure, etc.

▌Features⚫ High purity magnesium of 99.95% or higher, anessential element for humans and extremely safe.

Establishment of mass production system⚫ Starts dissolving after a certain period of time in
the body, and then slowly dissolves completely
over a long period of time.

⚫ Investment in facilities for mass production.
⚫ Confirmation of quality and performance stability.

©2024 NITTOSEIKO CO., LTD.

21

▌Growth#1
Growth#1

Business Expansion Strategy• M&A leading to expansion of business segments

Acquired a manufacturer of cold headed parts(bolts, nuts, etc.) in India

Gurugram

Haridwar
Delhi

Company Information
India

Company
Names

Vulcan Forge Pvt. Ltd.
Vulcan Cold Forge Pvt. Ltd.

Business

Design, manufacture and sales of forged parts

Sales
Destination

Automobile and motorcycle industry, agricultural
machinery industry in India

OfficeLocation①Manesar (Gurugram District)②Bahadorabad (Haridwar District)

No. of
Employees

292（As of July 2023）

Net Sales

752 Mil INR(1,369 Mil Yen) Year ended March 31, 2023

Gurugram Province: More than 50% of Japanesecompanies, including Suzuki’s subsidiarycompanies, are located in this province.
Strength of In-House Integrated Production(Consolidated)※1INR＝1.82JPY(As of February 20, 2024)

In-house production from wiredrawing, heading, rolling, plating,inspection to secondary processing.

Manufacturing and sales of NITTOSEIKO productsin India

Vulcan©2024 NITTOSEIKO CO., LTD.

Strengthen Group
Technology
Sharing sales
Sharing
Expansion ofchannels to nonproduct lineup Japanese companies purchasing
channels22▌Growth#1

Business Expansion Strategy
Expectations for growth of the fourwheel and EV markets in India

Acquired a manufacturer of coldheaded parts (bolts, nuts, etc.) in India

India four-wheel vehicle sales forecast (compact cars)

Vehicle Production in India by Category

600

439

500

MillionWorld's largest two-wheel andthree-wheel market. The fourwheel market is still small.

400

459

489

470

505

354

300

1.4x

200

in 5 years

100
0

2021
Source：ACMA Annual report 2023

2022

2023

2024

2025

2026

Source：Global Data

Indian government is actively
promoting EVs

Leading Japanese automakers
announce production increase in India.

"By 2030, 30% of all new passenger
cars on the market will be EVs."

2026
2028

Expect growth of the
four-wheel market©2024 NITTOSEIKO CO., LTD.

Increase production line of electric vehicles
Construction of new four-wheeled vehicle plant

Expect expansion of
the EV market
23▌Growth#2

Environmental Strategy

CO₂ Emissions

Result FY2023

Result FY2020-2023▲16.8％▲12%(t)（Compared to 2019）⚫ Installation of Solar Panels (Malaysia)⚫ Switch to LED lighting⚫ Switching to renewable electricity⚫ Measures to improve operating efficiency of
production and maintenance⚫ Other power saving measures

30,443

26,77029,964▲30%

26,437 25,321▲100%(Carbon
Neutralization)

2019

2020

2021

2022

2023

2024

2025

2030

2050

Plan of Initiatives till 2030

Target FY2030⚫ Installation of solar panels▲30％

Feb 2024: Thailand Fastener Plant
Winter 2024: Ayabe Fastener Plant（Compared to 2019）⚫ Reduction of electricity and transportation costs due
to new factory construction and layout changes
Solar panels(Subsidiary in Malaysia)

Solar Panels(Ayabe Assembly Machinery Plant)→Achieved 100% Green Energy

Waste

Ayabe Fastener Plant
Restructure Plan

ESG support for customers

Result FY2023

Target FY2025▲19.0％▲5％（Compared to 2019）

Waste volume remained flat due to an increase in
the number of manufacturing bases following M&A.
Promoting reduction of alkali waste and plating
sludge, and conversion of waste plastics into solid
fuel and reduction of their volume.
©2024 NITTOSEIKO CO., LTD.

Cold
headedparts● Expansion of TAPTITE product lineup● Diversification of dissimilar metal joining● Lightweight parts fastening support● Conversion from machining to cold heading● Development of new fastening technology

Assembly
Machine● Weight reduction of products ● Improving energy efficiency of products● Promoting automation ● Sales of environmentally friendly products● Improvement of product precision

Medical
Device● Commercialization of bio-soluble implants24▌ Growth#3
Labor productivity

Human Resource Strategy
Result FY2023＋0.3％

Engagement score

Result FY2023

3.6pt（Compared to 2022）

Strengthen capital cost management
capabilities and group management capabilities

Platinum Kurumin
Certification by the Ministry of Health, Labor andWelfare for particularly excellent "childcare
support" companies in accordance with the Law
for Measures to Support the Development of the
Next Generation.
Obtained in May 2023 (first certification in northern Kyoto Prefecture)

Transition to a divisional structure
NITTOSEIKO transitioned to a divisional businessstructure. Segment-based management system wasput in place to strengthen group management
control.

Renewal of ‘Our Credo’ handbook

Actively recruit technical intern trainees and specified
skilled workers. Strengthen the technical skills at local
subsidiaries and appoint local leaders.

Renewal of "Our Credo," an original
textbook for human resource education.
The textbook will be distributed to groupcompanies to promote the philosophy andachieve the mid-term management plan.

ThailandIndonesia

Before 2022

2023

2024

5

2＋2

Plan tocontinue hiring

Strengthen investment in the education andtraining of global human resources

10

Malaysia©2024 NITTOSEIKO CO., LTD.

3
2

Training to strengthen the cost ofcapital management performance
The educational video "N Library," in which employees
serve as instructors, is being spread throughout theGroup. Contents related to human resources strategy
and financial strategy in the mid-term management
plan are also included to strengthen the cost of capitalmanagement performance.
25

▌ Growth#4

Financial Strategy

GROWTH#4 Financial Strategy
Result FY2022

Target FY2025

Result FY2023

ＲＯＩＣ

5.7％

ＲＯＩＣ

5.3％

ＲＯＩＣ

８％以上

ＲＯＥ

6.1％

ＲＯＥ

5.5％

ＲＯＥ

９％以上

Analyze return on investment inbusiness expansion
Improve Fixed Asset Turnover
The Company will strengthen the system tocheck whether the investment effect is greaterthan the Group's WACC of 6.7% for capital
investments aimed at improving profitability.
In addition, on-site verification of fixed assets isunderway. Idle or ineffective facilities will beidentified to reduce taxes and assets.
Acquisition oftreasury stock

2023

219Mil Yen/400k stocks

Acquired treasury stock to improveshareholder returns and capital efficiency, andto execute a flexible capital policy in responseto changes in the business environment.
©2024 NITTOSEIKO CO., LTD.

Effect of CMS on debt reduction
Interest- Year Ended 2022
bearing
Bil Yendebt

2.99

Interest
expenseYear Ended 2023

1.93Bil Yen

FY2022

FY2023

25Mil Yen

17Mil Yen

Reduced interest-bearing debt through CMS.
Plan to reduce 200 million yen of interestbearing debt in FY2024.
In addition, group funds will be utilized forhighly effective investments, taking into
account the cost of capital.
26

３．Forecast for the Fiscal
Year Ending Dec 31, 2024

©2024 NITTOSEIKO CO., LTD.

27

Forecast for FY2024 (Consolidated)
2024/12 Full Year

2023/12 Full Year
Unit : Million yen/%AmountYoY(Forecast)

Ratio (%)

AmountAmountRatio (%)

% Change

ChangeNet sales

44,744100.0

48,200

100.0

3,455

7.7

Operating profit

2,614

5.8

3,300

6.8

685

26.2

Ordinary profit

2,835

6.3

3,500

7.3

664

23.4

1,734

3.9

2,100

4.4

365

21.1

46.95

-

57.46

-

-

-

Net income attributed to shareholders of
the parent company

Net income per share (yen)Main points
Net Sales⚫ While the first half of this fiscal year is expected toremain weak due to inventory adjustments and theslowdown in economic growth in major countries, anoverall group recovery is expected from the second half of
this fiscal year as the excess inventory is being resolved
and capital investment appetite is gradually increasing.

Operating
Income⚫ Plans to improve profitability by consolidating fastenerfactories and passing on material and labor costs tosales prices.

©2024 NITTOSEIKO CO., LTD.

Changes in the balanceof order backlog

2021

2022

2023

28

Net Sales and Operating Income Forecast by Segment(Consolidated)（Million Yen）

Change in net sales by segment

Major market trend

Business

Fastener
Business

Assembly
MachineBusiness

Automobile

EV-related demand is growing, and orders are
expected to gradually increase toward thesecond half of the year.

Housing andconstruction

Expectations for the renovation market, etc.

Automobile

Higher interest in capital investment is
expected to continue in the CASE business.

EnergysectorDemand for gas meters and electricity meters,
areas of strength, is expected to increase.

Chemical andpharmaceuticals

Control
SystemBusiness

MedicalBusiness（Million Yen） Change in Operating Income by segment

Ship building

Increased demand for renewal of flow metersfrom capital investment is expected to continue.

Initiatives for this fiscal year
The Company will work on reducing
manufacturing costs innovatively, as
well as passing on sales prices toimprove margins from soaring raw
material costs.
For its mainstay screw fastening machines,
the Company will introduce new productsthat can respond to environmental
concerns and increasingly complex shapes
to differentiate itself from competitors, andexpand not only in the automotive industry
but also in a wider range of industries andoverseas markets.
The Company will strive to develop new
products related to inspection equipment
and meet the needs for labor saving andautomation, and continue to drive sales
price revisions and cost reductions, suchas in-house production of machined parts.

Changes in the balanceof order backlog

2021

2022

2023

2021

2022

2023

2021

2022

2023

Automobile

Demand for analyzer-related products is also
expected to increase in the automotive industry
against the backdrop of the shift to EVs.

Development
plan

The Company will work to develop manufacturing facilities and conduct non-clinical and clinical trials of "High purity biosoluble magnesium for medical use." The Company will also expand sales of medical device products and develop new
products.

©2024 NITTOSEIKO CO., LTD.

29

Shareholder Returns
NITTO Power-up Plan FINAL
2015-2018

NITTOSEIKO Mission “G”
2019-2022

Mission G-second
2023-2025（Million Yen）

1,200

51.5%

1,000

29.4%

30.6%

33.2%

600

36.6%

131
325

343

32.5%

31.7%

192

400
200

50.0%

41.4%

800

220

27.0%

261

342

448

594

594

674

Share buyback
20.0%
10.0%

316

0
（Yen）

40.0%
30.0%

190
452

60.0%

0.0%
2015

2016

2017

2018

2019

2020

2021

2022

2023

20

18Yen
15
8.5

10
5
0

6.5

5.0

4.5

4.0

4.0

4.5

5.5

6.0

4.0

2015

2016

2017

2018

2019

2020

4.5

Total Payout Ratio
Plan to pay aprogressive dividendof no less than 18 yen
per share during theperiod of the mid-term
management plan.

9.5

Year-end Dividend

6.0

4.5

©2024 NITTOSEIKO CO., LTD.

8.0

9.0

Dividend

7.5

8.0

9.0

2021

2022

2023

9.5

2024
(Plan)

Interim Dividend30

４．Appendix©2024 NITTOSEIKO CO., LTD.

31

Balance Sheet (Consolidated)
Unit : Million yen/%

Year ended Dec 2022

Year ended Dec 2023

AmountAmountRatio (%)

YoY

Ratio (%)

Amount change% Change

AssetsTotal current assets

34,342

64.3

33,822

63.4

△ 519

△ 1.5

Cash and deposits

9,098

17.0

8,849

16.6

△ 248

△ 2.7

13,98626.2

12,79424.0△ 1,192△ 8.5

10,081

18.9

11,023

20.7

942

9.3

Total non-current assets

19,06535.7

19,521

36.6

455

2.4

Non-current assets

14,08526.4

14,129

26.5

44

0.3

Intangible assets

1,146

2.1

999

1.9

△ 146

△ 12.8Investments and other assets

3,833

7.2

4,391

8.2

558

14.6

53,408100.0

53,344

100.0

△ 63

△ 0.1

14,601

27.3

12,901

24.2△ 1,700△ 11.6

9,015

16.9

8,615

16.2

△ 399

△ 4.4

Short-term borrowings

2,436

5.6

1,574

3.0

△ 862

△ 35.4

Total non-current liabilities

4,304

8.1

4,040

7.6

△ 264

△ 6.1

18,90635.4

16,94131.8△ 1,964△ 10.4

Share capital

3,522

6.6

3,522

6.6

－

－

Capital surplus／Retained earnings

28,20852.8

29,400

55.1

1,191

4.2

Treasury shares△ 1,246△ 2.3△ 1,562

△ 2.9

△ 315

－

Total net assets

34,50164.6

36,402

68.2

1,900

5.5

Notes and accounts receivable – trade
Electronically recorded monetaryclaims - operating
inventory

Total assets
Liabilities
Total current liabilities
Notes and accounts payable - trade
Electronically recorded obligations – operating

Total liabilities
Net assets©2024 NITTOSEIKO CO., LTD.

32

Cash Flow Statement (Consolidated)Year ended Dec
Unit: Million yen / %Year ended Dec 2023

2022
AmountAmountAmount change% Change

CF from operating activities ※①

999

3,151

2,152

215.4

CF from investing activities ※②△ 1,987△ 1,187799△ 40.2

△ 987

1,963

2,951

△ 298.8△ 1,301△ 2,074

△ 773

59.4

△ 2,129

△ 278

1,850

△ 86.910,435

8,305△ 2,129△ 20.4

8,305

8,027

△ 278

△ 3.4

（Free CF）※①＋②

CF from financing activities
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at beginningof period
Cash and cash equivalents at end of
period©2024 NITTOSEIKO CO., LTD.

33

Capital Expenditures, Depreciation and R&D Expenses

Unit：Million Yen

Capital Investment

2021/122022/122023/12AmountAmountAmount2024/12(Forecast)Amount

1,171

1,122

1,299

1,350

M&A expenses

0

2,133

-

2,000

R&D expenses

715

764

737

1,000

Total

1,886

4,019

2,036

4,350

（Depreciation）

1,294

1,421

1,489

1,450

Improved productivity andquality, reduced CO₂ emissions

Renewal of equipment toimprove processing quality

New factory construction
and layout changes••

2023: 2nd construction - Layout changes of
Yata plant
2024: 3rd construction – Partial transfer of
headquarters plant to Yata plant (plan)©2024 NITTOSEIKO CO., LTD.

••

2023: Introduction of a vertical machining center
2024: Introduction of a multitasking machine
and a machining center (plan)34

Management Approach1

We will carry on our management philosophy and enhance
our corporate value by developing our business.

2

We will be recognized and sought after by our stakeholders
for the realization of a sustainable society.

3

As a manufacturing solutions group, we will share ourcustomers' materiality and strive to solve their issues.

4

We will ensure a strong financial position to carry out all ofthese activities.

35

Forecasts of future performance contained in this document are based on information
currently available to the Company and certain assumptions that the Company considers
reasonable. Actual results may differ from these forecasts due to a variety of factors.
Important factors that may affect actual results include, but are not limited to, economic
conditions in Japan and overseas surrounding our business domain, demand trends for our
products and services, exchange rates, and stock market trends. Factors that may affectour business performance are not limited to the above.

©2024 NITTOSEIKO CO., LTD.

36