Summary of Business Results forthe 118th Fiscal Year Ending Dec 2023
Feb 13th, 2024
NITTOSEIKO CO., LTD.
（Issue code: Tokyo Stock Exchange Prime 5957）

March 2023:
Selected as a
HealthManagement
Brand for thethird consecutive
year.

March 2022:
Selected as aNadeshikoBrand for the
first time.

1

Financial Highlights for FY2023 (Consolidated)
Unit: Million yen / %2022/ 122023/ 12Full Year

Full YearA mount

R ati o( %)Net sales

44,021100.0 44,744

Gross profit

10,377

23.6

Selling, general andadministrative expenses

7,445

Operating income

2023/ 12 Results
Compared to forecast(as of Nov. 14. 2023)

YoY
A mountc hange%ChangeF ore c ast
amountA mountc hange%Change

100.0

722

1.6

45,000

△ 255

△ 0.6

10,183

22.8

△ 194

△ 1.9

16.9

7,568

16.9

123

1.7

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

Net income for current
period before income taxes

3,194

7.3

2,830

6.3

△ 363

△ 11.4N e t i nc ome attri b ute d toshare hold e rs of the p are nt
c omp any

1,828

4.2

1,734

3.9

△ 94

△ 5.1

1,700

34

2.0

Net income per share (yen)

49.5

-

46.95

-

-

-

46.01

A mount

R ati o( %)

 K.M. Seiko Co., Ltd. and Pinning Co., Ltd., which became consolidated subsidiaries in April 2022, andNittoseiko Analytech Europe GmbH, established in Germany in April 2023, contributed to businessperformance. In addition, sales of fastener products for the automobile, housing, and constructionindustries, and control products such as analytical instruments for the chemical and pharmaceuticalindustries showed growth, resulting in a 1.6% YoY sales increase.
 Operating income declined 10.8% YoY due to the significant impact of sluggish orders caused by theslowdown of the U.S. and Chinese economies, despite sales price revisions and cost reductions in bothproduction and sales operations in response to soaring resource and raw material prices.
 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.
2Net Sales and Operating Income by Segment (Consolidated)
Unit: Million yen / %Fastener

Assembly
MachineControl
SystemMedical（Million Yen）

2022/ 122023/ 12Full Year

Full Year

YoY
Amount change% Change

Net sales

32,19932,855656

2.0Operating income

1,648

1,625

△ 22

△ 1.4

Profit ratio

5.1

4.9

Net sales

6,515

5,955

△ 559

△ 8.6

Operating income

1,227

822

△ 405

△ 33.0

Profit ratio

18.8

13.8

Net sales

5,296

5,915

619

11.7

Operating income

157

278

120

76.4

Profit ratio

3.0

4.7

Net sales

10

17

6

64.1

Operating income

△ 102

△ 112

△ 10

－

Profit ratio△ 976.2△ 654.4

Change in net sales by segment（Million Yen） Change in operating income by segment

3

Overview of Results by Segment - Fastener Division
Unit: Mil yen/ %Net sales
Automobile
Housing andconstruction
Electrical andelectronic parts
Householdgoods
IT and digitalequipment
Precisionequipment

2022/ 122023/ 12Full Year

Full Year

AmountAmount◆ Automobile

YOY•

Amount % Change

32,19932,855656

2.0

11,417

12,955

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

1,098

△ 44

•

Demand for fastening parts for construction, such as"Self-Drilling Screws" and "Nuts," showed growth. In
addition, future growth is expected with the launch of
the new product "SHARECROSS" in the market.

◆ Electrical and electronic parts△ 3.9

Sales remained weak due to sluggish consumption in
Europe and China.

◆ Household goods

Medical

323

289

△ 34

△ 10.6

Others

2,817

3,061

244

8.7

1,648

1,625

△ 22

△ 1.4

Operating Income◆ Housing and construction

•

1,142

Despite the aftermath of customers' inventory
adjustments due to the coronavirus pandemic, sales
recovered for “GIZATITE”, “ALUMITITE”, and“Screws with Captive Washers” for EVs, ECUs,
batteries, sensors, and electrification. Demand for "CP
GRIP," "Precision Pressed Products" and the new
product "JOISTUD," which contributes to weight
reduction and thinner sheets, remained strong.

•◆ IT and digital equipment•• Net sales increased due to strong demand from the housing andconstruction sectors in North America, in addition to the mainstay
automotive sector.
• Operating income decreased due to difficult negotiations to pass onhigher prices for energy and subsidiary materials, despite efforts toimprove efficiency and reduce costs by consolidating manufacturing
plants.

The game machine market, which had been boosted
by a stay-at-home demand during the coronavirus
pandemic, calmed down, and orders for precision
screws declined.

Sluggish consumption of IT equipment in Europe, theU.S., and China has led to slowdown of production in
the main production centers, such as China andSoutheast Asia.

◆Others•

Orders increased due to digitalization in Amusement
machine industry.

4Overview of Results by Segment – Assembly Machine Division
Unit: Mil yen/ %Net sales
Automobile
Electrical andelectronic parts
AmusementmachineEnergy sector
Housing andconstruction
IT and digitalequipment
OthersOperating income

2022/ 122023/ 12Full Year

Full Year

AmountAmount◆ Automobile

YOY•

Amount % Change

6,515

5,955

△ 559

△ 8.6

3,889

3,410

△ 479

△ 12.3◆ Electrical and electronic parts
•

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

1,163

748

△ 415

△ 35.7

1,227

822

△ 405

△ 33.0

Sales remained sluggish amid a decline in capital
investment appetite in the U.S. and China, despite
strong orders for EV-related screw fastening
machines in Japan and CASE-related equipments
overseas.

Substantial YoY increase due to acquisition of large
projects such as substrate surface treatment
equipment.

◆ Amusement machine•

Sales increased significantly due to large orders for"Assembly Lines" and "Screw Driving Robots "associated with the production of new models.

◆ Energy sector•

Despite orders for equipment related to gas stovesand gas meters, sales remained sluggish overall.

◆ Housing and construction•

Sales remained steady due to orders received for
new and extension of housing-related assemblylines.

◆ IT and digital equipment• 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 forelectrification 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.

•

Sales remained steady due to special demand
related to smartphones.

◆ Others•

Sales declined due to a downward trend in exports
in the industrial robot market and a backslash of
related equipment from strong sales in the previous
year.

5

Overview of Results by Segment – Control System Division
Unit: Mil yen/ %Net sales

2022/ 122023/ 12Full Year

Full Year

AmountAmount◆ Chemical and pharmaceuticals

YOY
Amount % Change

5,296

5,915

619

11.7

Chemical andpharmaceuticals

1,183

1,412

229

19.4

Energy sector

853

900

47

5.6

548

438

△ 109

△ 20.0

Housing andconstruction
Electrical andelectronic parts• Sales of flowmeters related to semiconductor
manufacturing facilities remained strong. In
addition, sales of analyzers increased due to arecovery in demand and the resolution of parts
shortages after the corona pandemic.
◆ Energy sector• Sales of analyzers increased due to a recovery indemand and the resolution of parts shortages
after the corona pandemic.
◆ Housing and construction

304

414

110

36.2

• Sales of the ground investigation equipment"GEOKARTE IV" remained sluggish due to a weakgrowth in the number of detached housing starts.

Automobile

367

411

44

12.0

◆ Electrical and electronic parts

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

157

278

120

76.4

Operating income• Both net sales and operating income increased due to strong
demand for flowmeters, and increased sales of analyzers at new
branches in Europe.
• The Company will continue to drive sales price revisions and cost
reductions, such as in-house production of machined parts.

• Demand for analytical and measuring instruments
remained strong.
◆ Automobile• Demand for inspection equipment was sluggish
until 3Q but turned around in 4Q. Higher demand
for resistivity meters, such as for battery materials,
also contributed to the increase in sales.
◆ Ship building• Due to the transition to the international scheme
for CO2 emission control, demand for replacementof mass flowmeters, etc., remained steady both inJapan and overseas.
◆ Medical• Demand for analytical and measuring instruments
remained steady.

6Overview of Results by Segment – Medical Division

Unit: Mil yen/ %2022/ 122023/ 12Full Year

Full Year

AmountAmountYOY
Amount % Change

10

17

6

64.1

Medical

10

17

6

64.1

Others

－

－

－

－

△ 102

△ 112

△ 10

－

Net sales

Operating income◆ Medical• The "FREELED" medical illuminator did
not achieve full adoption despite efforts
to collect market needs and engage inpromotional activities while reducing
costs, a high customer demand after thecoronavirus pandemic. The Company willcontinue to focus on strengthening PR
activities through sales companies toachieve full adoption.
• The Company received a patent inJapan for "High purity bio-soluble
magnesium for medical use" in June
2023. Efforts to launch a new productare ongoing, including the developmentof integrated manufacturing facilities, thepreparation of samples for clinical trials,
and performance testing, as well as
preparations for obtaining permits andapprovals for the marketing of medical
products and the establishment of aquality control system. At the same time,
the Company will also collect information
on parts to which this material can beapplied.
• New projects utilizing the Company's
existing technologies have been initiatedand are ongoing. The Company will
expand its medical device business.
7Balance Sheet (Consolidated)
U ni t : Mi lli on ye n/ %Y e ar e nd i ng De c 2 0 2 2

Y e ar e nd i ng De c 2 0 2 3

A mount

A mount

R ati o ( %)R ati o ( %)Y oYAmou n t c h an ge% Change

A sse ts
Total 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

Notes and accounts receivable– tradeElectronically recorded monetaryclaims - operating

13,98626.2

12,79424.0△ 1,192△ 8.5

inventory

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

Notes and accounts payable - trade
Electronically recorded obligations– operating

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

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 ne t asse ts

34,50164.6

36,402

68.2

1,900

5.5

Total asse ts
Li ab i li ti e s
Total current liabilities

Total li ab i li ti e s
N e t asse ts
Share capital8

Cash Flow Statement (Consolidated)

Unit: Million yen / %Year ending
Dec 2022
AmountYear ending Dec 2023
AmountAmountchange% 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

CF from financing activities△ 1,301△ 2,074

△ 773

59.4

Net increase (decrease) in cash andcash equivalents△ 2,129

△ 278

1,850

△ 86.9Cash and cash equivalents at
beginning of period

10,435

8,305△ 2,129△ 20.4

8,305

8,027

△ 278

△ 3.4

（Free CF）※①＋②

Cash and cash equivalents at endof period

9Forecast for the 119th
Fiscal Year Ending Dec 2024

The future projections in this document, including earnings forecasts, are based on information
currently available to the company and certain assumptions that the company considers
reasonable and actual results may differ from these forecasts due to a variety of factors.

Forecast for FY2024 (Consolidated)
2023/ 12 Full Year

2023/ 12 Full Year
(Forecast)AmountAmountUnit : Million yen/ %Net sales

Ratio (%)

YoY
AmountChangeRatio (%)

% Change

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

Net income attributed to shareholdersof the parent company

1,734

3.9

2,100

4.4

365

21.1

Net income per share (yen)

46.95

-

57.46

-

-

-

 While the first half of this fiscal year is expected to remain weak due to inventory adjustments and the slowdown in economic
growth in major countries, an overall 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.
 The fastener business continues to be sluggish, especially in the automotive sector, but a gradual recovery is expected toward
the second half of the year. The Company will ensure that it meets the trend of expanding areas in overseas markets andincreasing demand for high-value-added products based its own technologies, such as AKROSE. In addition, the Company will
work on reducing manufacturing costs innovatively, as well as passing on sales prices to improve margins from soaring raw
material costs.
 In the assembly machine business, although the recovery of capital investment is expected to be slow both in Japan andoverseas, the Company will respond to projects for the CASE business in the automotive industry, where the appetite forcapital investment is high. For its mainstay screw fastening machines, the Company will introduce new products that can
respond to environmental concerns and increasingly complex shapes to differentiate itself from competitors, and expand not
only in the automotive industry but also in a wider range of industries and overseas markets.
 In the control system business, demand for flow meters is expected to continue to increase driven by a renewal demand from
capital investment in the chemical/pharmaceutical and shipbuilding industries. Demand for analyzer-related products is also
expected to increase in the automotive industry against the backdrop of the shift to EVs. The Company will strive to develop
new products related to inspection equipment and meet the needs for labor saving and automation.
 In the medical business, the Company will work to develop manufacturing facilities and conduct non-clinical and clinical trials of"High purity bio-soluble magnesium for medical use." The Company will also expand sales of medical device products anddevelop new products.

11

Net Sales and Operating Income Forecast by Segment (Consolidated)
2023/ 12 Full YearNet sales

32,85535,1002,244

6.8

Operating income

1,625

1,900

274

16.9

Profit ratio

4.9

5.4

Net sales

5,955

6,850

894

15.0

Operating income

822

1,150

327

39.9

Profit ratio

13.8

16.8

Net sales

5,915

6,200

284

4.8

Operating income

278

400

121

43.7

Profit ratio

4.7

6.5

Net sales

17

50

32

191.4

Operating income

△ 112

△ 150

△ 37

－

Profit ratio△ 654.4△ 300.0

Unit: Million yen / %Fastener

Assembly
MachineControl
SystemMedical（Million Yen）

YoY

2024/ 12 Full Year
(forecast)

Change in net sales by segment（Million Yen）

Amountchange%ChangeChange in operating income by segment

12