Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended December 31, 2023
(Based on Japanese GAAP)

February 13, 2024

Company name:
Nittoseiko Co.,Ltd.
Stock exchange listing: Tokyo
Stock code:
5957
URL https://www.nittoseiko.co.jp/
Representative:
President
Makoto Araga
Inquiries:
Director,Accounting & Finance Division
Shinichi Matsumoto
TEL (0773)42-3111
Scheduled date of ordinary general meeting of shareholders:March 27, 2024
Scheduled date to file Securities Report:
March 28, 2024
Scheduled date to commence dividend payments:
March 28 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended December 31, 2023
44,744
1.6
2,614 (10.8)
2,835 (12.4)
1,734 （5.1）
Year ended December 31, 2022
44,021
8.6
2,931
(9.8)
3,235
(7.2)
1,828 （16.9）
Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners of
sales
assetsparent/equity
Yen
%
%
%
–
5.5
5.3
5.8
–
6.1
6.2
6.7

Diluted earnings per
share

Yen
46.95
49.50

Year ended December 31, 2023
Year ended December 31, 2022
(2) Consolidated financial position

Total assets
As of December 31, 2023
As of December 31, 2022
(3) Consolidated cash flows

Year ended December 31, 2023
Year ended December 31, 2022

Net assets

Equity ratio

Millions of yen
53,34453,408Millions of yen
36,40234,501

Cash flows fromoperating activities
Millions of yen
3,151
999

Cash flows frominvesting activities
Millions of yen(1,187)(1,987)

Net assets per share
%
60.7
57.6

Yen
886.65832.39Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(2,074)
8,027(1,301)8,305

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2022
Year ended December 31, 2023
Year ending December 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

8.00
9.00

–
–

8.00
9.00

16.00
18.00

594
674

32.3
38.3

2.0
2.1

–

9.50

–

9.50

19.00

1

33.1

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
23,000
2.5
1,500
15.5
1,600
8.4
1,000
19.9
27.36
June 30, 2024
Full year
48,200
7.7
3,300
26.2
3,500
23.4
2,100
21.1
57.46
4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

39,985,017 shares As of December 31, 2022

39,985,017 shares

Number of treasury shares at the end of the period
As of December 31, 2023

3,438,383 shares As of December 31, 2022

3,034,386 shares

36,946,218 shares Year ended December 31, 2022

36,940,948 shares

Average number of shares during the period
Year ended December 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable - other
Other
Allowance for doubtful accounts

As of December 31, 2023

9,098,940
9,890,226
4,096,689
4,359,638
2,835,323
2,886,760
873,875
307,505(6,458)8,849,940
8,722,766
4,071,362
4,729,069
3,184,409
3,110,265
622,622535,239(2,725)34,342,500

33,822,950

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net

4,240,912
3,007,907
5,608,449
712,956
515,733

4,075,488
3,105,785
5,671,521
756,533
520,656

Total property, plant and equipment

Total current assets

14,085,959

14,129,985

Intangible assets
Software
Goodwill
Customer related assets
Technology related assets
Other

408,588
467,671
47,275
213,150
9,985

361,332
392,569
36,875
183,750
25,227

Total intangible assets

1,146,669

999,754

1,168,756
678,324
1,350,119
636,857(1,000)1,161,896
663,219
1,968,354
599,077(1,000)Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

3,833,058

4,391,547

19,065,687

19,521,287

53,408,188

53,344,237

(Thousands of yen)
As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Accounts payable - other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for directors' retirement benefits
Provision for share-based remuneration for directors (andother officers)
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities

As of December 31, 2023

4,468,705
4,546,412
2,436,836
529,316
758,998
263,798
1,597,245

4,333,229
4,282,701
1,574,380
323,614
558,472
263,123
1,565,761

14,601,312

12,901,282

559,973
193,762

358,469
159,236

62,23793,303395,051
2,585,929
507,925584,378
1,869,882
974,885

4,304,880

4,040,155

Total liabilities

18,906,193

16,941,438

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

3,522,580
2,674,370
25,534,331(1,246,518)

3,522,580
2,767,848
26,632,568(1,562,112)

30,484,763

31,360,884

60,05081,013
131,562

114,013456,875
472,214

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

272,627

1,043,103

Non-controlling interests

Total accumulated other comprehensive income

3,744,604

3,998,810

Total net assets

34,501,994

36,402,799

53,408,188

53,344,237

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Net sales
Cost of sales

44,021,468
33,644,218

44,744,163
34,561,117

Gross profit

10,377,249

10,183,046

Selling, general and administrative expenses

7,445,452

7,568,829

Operating profit

2,931,796

2,614,216

23,54012,72987,966125,657
42,43437,290143,198

31,611
14,01092,076
57,57014,16528,429131,154472,816

369,020

25,06067,63476,721

17,252
77,06653,417

169,416

147,736

3,235,197

2,835,499

8,053
41,424352,455－

19,67430,024－36,357

401,933

86,05521,000421,848

39,78550,912442,849

90,698

Profit before income taxes

3,194,281

2,830,857

Income taxes - current
Income taxes - deferred

1,173,810(59,295)

832,420
23,243

Total income taxes

1,114,515

855,664

Profit2,079,766

1,975,192

Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Sales scrap
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental costs
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5

251,119

240,617

1,828,647

1,734,574

Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
December 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Fiscal year ended
December 31, 2023

2,079,766

1,975,192(35,803)441,760
45,48760,868515,829
340,651(5,192)(1,888)446,251

915,4612,526,018

2,890,654

2,111,281

2,505,051

414,736

385,602

Consolidated statements of changes in equity
Fiscal year ended December 31, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,522,580

Retained earnings

2,674,370

Treasury shares

24,319,204(1,254,713)

Total shareholders'equity29,261,441

Changes during period
Dividends of surplus(613,521)(613,521)

Profit attributable to ownersof parent

1,828,647

1,828,647

Purchase of treasury shares(2,227)(2,227)

Disposal of treasury shares

10,422

10,422

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－－

1,215,126

8,195

1,223,321

3,522,580

2,674,370

25,534,331(1,246,518)

30,484,763

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

100,776

Foreign currencytranslation

Remeasurementsof defined benefit

adjustment

plans(196,858)

Total accumulated
othercomprehensive

Non-controllinginterests

Total net assets

3,450,703

32,702,138

income86,075(10,006)

Changes during period
Dividends of surplus(613,521)

Profit attributable to owners

1,828,647

of parent
Purchase of treasury shares(2,227)

Disposal of treasury shares

10,422

Net changes in items otherthan shareholders' equity(40,726)

277,872

45,487

282,633

293,900

576,534

Total changes during period(40,726)

277,872

45,487

282,633

293,900

1,799,856

Balance at end of period

60,05081,013

131,562

272,627

3,744,604

34,501,994

7

Fiscal year ended December 31, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,522,580

Retained earnings

2,674,370

Treasury shares

25,534,331(1,246,518)

Total shareholders'equity30,484,763

Changes during period
Dividends of surplus(636,336)(636,336)

Profit attributable to ownersof parent

1,734,574

1,734,574

Purchase of treasury shares
Disposal of treasury shares

93,478(222,116)(222,116)(93,478)－

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－

93,4781,098,237(315,594)

876,1213,522,580

2,767,848

26,632,568(1,562,112

31,360,884

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

60,050Foreign currencytranslation

Remeasurementsof defined benefit

adjustment

plans

81,013

131,562

Total accumulated
othercomprehensive

Non-controllinginterests

Total net assets

3,744,604

34,501,994

income272,627

Changes during period
Dividends of surplus(636,336)

Profit attributable to owners

1,734,574

of parent
Purchase of treasury shares(222,116)

Disposal of treasury shares－

Net changes in items otherthan shareholders' equity

53,963375,861

340,651

770,476

254,206

1,024,683

Total changes during period

53,963375,861

340,651

770,476

254,206

1,900,804

Balance at end of period

114,013456,875

472,214

1,043,103

3,998,810

36,402,799

8

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
December 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodGain on bargain purchase
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accrued expenses
Other, net

Fiscal year ended
December 31, 2023

3,194,281
1,421,905
47,179(40,898)(207,056)(36,269)
25,0602,830,857
1,489,734(6,105)(7,970)(275,311)(45,621)
17,252(37,290)(28,429)(352,455)(41,424)
421,848
21,000(8,053)(892,284)(1,150,062)(13,308)(176,909)
31,804
139,931－(30,024)
50,91239,785(19,674)
1,348,746(829,440)(428,020)(2,634)
26,31235,645

Subtotal

2,346,996

4,166,012

Interest and dividends received
Interest paid
Income taxes paid

36,994(22,763)(1,362,043)

45,032(19,449)(1,040,145)

999,184

3,151,449(638,219)
951,395(1,039,093)
8,943(21,000)(205,228)
64,420390,000(453,816)
436,694(1,131,196)
23,984(39,785)(5,839)109,802－(1,351,790)－(3,061)
1,412(144,794)(1,075)
1,561(128,043)(1,987,015)(1,187,714)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Loan advances
Collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from sales of treasury shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net(170,100)
33,340(415,416)
10,422(192)(613,521)(120,836)(25,094)(807,500)－(256,460)
286,230(506,218)(636,336)(131,396)(22,967)

Net cash provided by (used in) financing activities(1,301,397)(2,074,648)

Effect of exchange rate change on cash and cash equivalents

159,454(167,868)

Net increase (decrease) in cash and cash equivalents(2,129,774)(278,782)

Cash and cash equivalents at beginning of period

10,435,701

8,305,927

Cash and cash equivalents at end of period

8,305,927

8,027,144

10

(Segment Information)
1．Year Ended December 31, 2022 (From January 1, 2022 to December 31, 2022)
Information concerning net sales and profit or loss by reporting segment(Thousands of yen)

Reportable segments

Consolidated

Fastener

Assembly
MachineControl
SystemNet sales
Sales to externalcustomers
Intersegment sales
and transfers

32,199,349

6,515,644

5,296,018

10,45644,021,468

44,021,468

－

－

－

－

－

－

Total

32,199,349

6,515,644

5,296,018

10,45644,021,468

44,021,468

Segment profit (loss)

1,648,790

1,227,237

157,843(102,074)

2,931,796

2,931,796

Medical

Total

Notes: Segment profit is adjusted for operating income reported in the consolidated statements of income.

2．Year Ended December 31, 2023 (From January 1, 2023 to December 31, 2023)
Information concerning net sales and profit or loss by reporting segment(Thousands of yen)
Reportable segments

Consolidated

Fastener

Assembly
MachineControl
SystemNet sales
Sales to externalcustomers
Intersegment sales
and transfers

32,855,853

5,955,847

5,915,303

17,15844,744,163

44,744,163

－

－

－

－

－

－

Total

32,855,853

5,955,847

5,915,303

17,15844,744,163

44,744,163

Segment profit (loss)

1,625,972

822,071

278,449(112,277)

2,614,216

2,614,216

Medical

Total

Notes: Segment profit is adjusted for operating income reported in the consolidated statements of income.

11