Financial Results Briefing
for the Second Quarter of
the Fiscal Year Ending
March 31, 2023

SEIKA CORPORATION(TSE Prime Market: 8061)

CONTENTS
01

02

03

Summary of Consolidated
Financial Results
for the Second Quarterof the Fiscal Year Ending
March 31, 2023

Consolidated Forecast
for the Fiscal YearEnding March 31, 2023

TopicsReference Materials

2

01

Summary of Consolidated Financial Results
for the Second Quarterof the Fiscal Year Ending March 31, 2023

3

Summary of Consolidated Financial Results for theSecond Quarter of the Fiscal Year Ending March 31, 2023
2022/3
1H Result2023/3
1H Result

Transaction value

69,027

million yen

68,866

million yen-0.2 %Net sales

40,452

million yen

40,452

million yen-0.0 %

Operating income

1,304

million yen

1,444

million yen+10.7 %

Ordinary income

1,315

million yen

1,217

million yen-7.4 %

698

million yen

844

million yen+20.9 %

Profit attributable toowners of parent

Change(YoY)

2022/3
1H Result2023/3
1H Result

Change(YoY)

Amount of orders
received

41,667

million yen

46,468million yen+11.5 %

Order backlog

62,141

million yen

64,772

million yen+4.2 %
4

Business Summary by Segment (Net Sales and Income)Power Plant(In million yen)

Net sales Power Plant
Segment income

458

4,436

6,686

2022/3
1H Results

2023/3
1H Results

2022/3
1H Results

351

2023/3
1H Results

Chemicals andEnergy Plant (In million yen)

 Chemicals and Energy Plant

381
10,553

10,5422022/3
1H Results

2023/3
1H Results· The renovation of large thermal power
generation facilities in Hokuriku
positively affected sales.
· Profitable projects related to disaster
control and security decreased.
· The poor profitability of the fuelbusiness adversely impacted the profit
ratio.

200

2022/3
1H Results

2023/3
1H Results· Large projects including hydraulic power
generation facilities for a large transport
operator positively impacted sales.
· The briskness of Seika Daiya Engine
Co., Ltd.'s business helped boost
segment performance.
· Results of Shikishimakiki Corporation
were helpful to the figure.

5

Business Summary by Segment (Net Sales and Income) Industrial Machinery

Industrial Machinery (In million yen)
Net sales

16,95017,880

Segment income

544
263

2022/3
1H Results

2023/3
1H Results

2022/3
1H Results

2023/3
1H Results

Global Business (In million yen)

 Global Business

374
8,512
2022/3
1H Results

197

5,342
2023/3
1H Results· Sales from large projects including
bookbinding facilities for government
agencies and manufacturing facilities forhealth food manufacturers had apositive effect.
· Nippon Daiya Valve Co., Ltd. performed
strongly.
· The weakening of the yen increased theearnings of export projects for the
Tsurumi (Europe) GmbH Group.

2022/3
1H Results

2023/3
1H Results· The Tsurumi (Europe) GmbH Group's
results had a positive impact.
· Performance was negatively affectedby restrictions on sales activities anddelayed projects in China andSoutheast Asia during the COVID-19
pandemic.

6

Business Summary by Segment(In million yen)

Net sales
2022/3 1H
Result2023/3 1H
ResultPower Plant

4,436

6,686

Chemicals andEnergy Plant

10,553

Industrial
MachinerySegment income
2022/3 1H
Result2023/3 1H
Result+2,250

458

351

-106

10,542

-11

200

381

+181

16,95017,880

+929

263

544

+280

Global Business

8,512

5,342

-3,169

374

197

-176

Total

40,45240,452

－

1,296

1,475

+178

ChangeChange7

02

Consolidated Forecast for the Fiscal YearEnding March 31, 2023

8

Consolidated Forecast for the Fiscal Year Ending March 31, 2023
2023/3
1H Result
Transaction value(Note)Net sales
Operating income
Ordinary income

2023/3 Forecast

Progress rate

68,866 million yen 170,000 million yen
40,452 million yen 95,000 million yen
1,444 million yen
3,700 million yen
1,217 million yen
3,700 million yen

40.5 %

2,500 million yen

33.8 %

Profit attributableto owners of parent

844 million yen

42.6 %
39.0 %
32.9 %

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

Changes in dividends
The Company considers the return of profits toshareholders one of the most importantmanagement issues and has a basic policy of
paying a stable dividend. While strengthening
business foundations through efficientbusiness operations across both anoperational and financial perspective, andflexibly responding to funding needs for new
business development, etc., the Company
targets a consolidated dividend payout ratio of
35%.

Interimdividend

Year-end
dividend(Yen)(Forecast)(Forecast)

2019/32020/32021/32022/32023/39

Amount of orders received
1H(In million yen)Transaction value
1H

Full year(In million yen)

Net sales
1H

Full year(In million yen)
Full year(Forecast)(Forecast)

2021/32022/3Operating income
1H

2022/3(1H)(In million yen)

Full year

2021/32022/3

Ordinary income
1H

Full year

2023/32021/32022/3

Profit attributable to(In million yen) owners of parent
Profit per share2023/3(In million yen)
(yen)

1H
Full year
Profit per share(Forecast)(Forecast)(Forecast)(Forecast)

2021/32022/32023/32021/32022/32023/32021/32022/32023/3

10

Consolidated Forecast for the Fiscal Year Ending
March 31, 2023 by Segment (Transaction Value, Net Sales and Income)
Power
Plant

· Sales of disaster prevention-related equipment to nuclear power plant· Expected to remain almost flat year on year.

Transaction value(In million yen)

Net sales

Segment income

41,00024,7636,686
2023/3
1H Results

2023/3
Forecast

2023/3
1H Results

900

15,0002023/3
Forecast

351
2023/3
1H Results

2023/3
Forecast(Before application of the Accounting Standard for
Revenue Recognition and other related standards)

Chemicals andEnergy Plant· Seika Daiya Engine and Shikishimakiki's sales will be healthy.
· Construction projects for chemical manufactures and others will increase.

70,00024,00019,1192023/3
1H Results(In million yen)

10,5422023/3
Forecast

2023/3
1H Results

381
2023/3
Forecast

2023/3
1H Results

700
2023/3
Forecast(Before application of the Accounting Standard for
Revenue Recognition and other related standards)
11

Consolidated Forecast for the Fiscal Year Ending
March 31, 2023 by Segment (Transaction Value, Net Sales and Income)Industrial
Machinery· Sales of manufacturing equipment for health food manufacturers and film manufacturing
equipment for large textile firms will produce good results.
· Nippon Daiya Valve will perform strongly.

Transaction value

Net sales

44,0002023/3
1H Results

Segment income

41,0001,500

17,88019,6402023/3
Forecast

2023/3
1H Results(In million yen)544
2023/3
Forecast

2023/3
1H Results

2023/3
Forecast(Before application of the Accounting Standard for
Revenue Recognition and other related standards)

GlobalBusiness

5,342
2023/3
1H Results· The Tsurumi (Europe) Group's sales will be buoyant.
· The impact of COVID-19 will be serious, mainly in China and Southeast Asia

15,0002023/3
Forecast

5,342
2023/3
1H Results(In million yen)

15,000197
2023/3
Forecast

2023/3
1H Results

600
2023/3
Forecast

12

Consolidated Forecast for the Fiscal Year Ending
March 31, 2023 by Segment
Transaction value

Net sales(In billion yen)Segment income

2022/3Result2023/3
Forecast

Change2022/3Result2023/3
Forecast

Change2022/3Result2023/3
Forecast

ChangePower Plant

39.54

41.0

+1.46

11.36

15.0

+3.64

1.19

0.9

-0.29

Chemicals andEnergy Plant

36.70

70.0

+33.3

22.26

24.0

+1.74

0.74

0.7

-0.04

Industrial
Machinery

41.52

44.0

+2.47

35.19

41.0

+5.81

1.14

1.5

+0.36

Global Business

16.49

15.0

-1.49

16.49

15.0

-1.49

0.73

0.6

-0.13

Total

134.26170.0+35.74

85.3

95.0

+9.70

3.81

3.7

-0.11

The Accounting Standard for Revenue Recognition and other related standards are not applied to transaction value.
13

03
Topics14

Topic (1)Opening of the Misumi Satellite Office
Higashihiroshima Branch

In October 2022, we opened the Misumi
Hiroshima BranchSatellite Office in Hamada, Shimane
Prefecture as a site under the control of Misumi Satellite Officethe Hiroshima Branch.
Tokuyama Branch
Traditionally, the Hiroshima Branch hasserved Chugoku Electric Power Co., Inc.
and other customers in the coastal areasof Shimane Prefecture. The opening of
this satellite office has paved the way formore flexible sales activities.
In the future, we will continue to improveflexibility and services.

Fukuyama
BranchOkayama
BranchYamaguchi Branch
Kitakyushu Branch
Fukuoka Branch

Shikoku Branch
Nagasaki Branch
Oita Branch
Nobeoka Branch

15Topic (2)Investment in Euglead Inc.
We invested in Euglead Inc., a business venture engaging in the manufacturing of paramylon
nanofibers (PNF), which are nanofibers derived from euglena. In addition, we formed abusiness partnership with it for the sale of PNF.

Producing nanofibers from euglena
 Automobiles
 Household appliances Separators of electrode materials for fuelcells and others
 For housing and building materials
Expected to have a wide variety of
applications as a reinforced plastic composite.

EuglenaParamylon

Fine algae holding animal andplant characteristics andcontaining rich nutrients

Polysaccharide composed of
β-1,3 glucan stored in euglena
with a sophisticated crystal
structure. It has a uniform
particle size of 5 μm.

Paramylon
nanofibers (PNF)
Produced from paramylon
and free of impurities.
As a material, they haveuseful properties.

What is PNF?
 Nature-derived nanofibers
 Its strength is five times that of steel witha weight that is about one-fifth the weightof steel About a quarter of the cost of CNF
16

Topic (3) SMI Signs Business Partnership Agreement with ACE

Issues· Tire manufacturers carry out large-scale tests involving the driving of vehicles under different natural
conditions to analyze and assess abrasion, friction and other tire characteristics when developing products.
This requires a huge amount of time, money and labor.
· Manufacturers of the materials supplied to tire manufacturers may also possibly conduct similar tests.
· In recent years, environmental measures such as the reduction of the number of tires used in the tests thatare disposed and abrasion powder have been drawing attention.

SEIKA




Able to test abrasion, friction and othercharacteristics using tire samples insimulated driving instead of actual
driving, the simulation reproduces tire
slippage under dry, rainy and snowy
conditions.
This facilitates the assessment of tire
performance and achieves a highdegree of correlation with the datacollected in real driving tests.

Rotation Traction
Measurement (RTM)×

 Signed a North America dealershipcontract with Ueshima Seisakusho.
Launched collaboration in the UnitedStates.
 Purchased demonstration prototypes
from Ueshima Seisakusho and put one
on display in trade shows. Anotherprototype is also placed in ACE's
demonstration room.
 Aiming to expand business
opportunities to comprehensively
supply different items to tire andmaterial manufacturers.



×





Launched in Akron, Ohio, amid an
industrial cluster of tire and chemical
manufacturers
Conducting various physical tests ofrubber and other materials on contract
as well as the analysis and evaluationof materials and consulting services.
Its name recognition has rapidly
increased in recent years in the tireand rubber industry.
Capable of testing materials related toroad construction to expand its
services into the social infrastructure
sector.

17

Social Contribution Activities

Investment in Renatech Co., Ltd.
SDGs Support Fund
We invested 15 million yen in Renatech Co., Ltd. in orderto support its metallo-balance cancer risk screening
business.
Providing a high-reliability, low-cost cancer risk exam
tool, this business helps detect early-stage cancer. Our
determination that this addresses SDG 3: Ensure healthy
lives and promote well-being for all at all ages led to ourdecision to invest.

Donation of 600,000
high performance face masks
We donated approximately 600,000 hydro silver titanium®
non-woven masks manufactured by DR.C Medical
Medicine Co., Ltd. to the Okayama Prefectural
Government, the Yamaguchi Prefectural Government, theNagasaki Prefectural Government, the Kitakyushu City
Government, the Tokyo Community Chest Society, foodbank OSAKA, Foodbank Tama, FUKUSHIMA Inochi-noMizu and others.
It is a functional face mask developed by DR.C Medical
Medicine, a specialist in development of therapeutic agentsagainst infectious and allergic diseases, through theapplication of its hydro silver titanium® technology that
decomposes unsanitary proteins and proteins in pollen into
water, carbon dioxide, nitrogen and other components.
ProteinHydro silver titanium®
Decomposing into
water, carbon dioxide,
nitrogen andother components

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

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

19

Reference Materials
Fiscal Year Ending March 31, 2023

20

Reference Materials
1. Company Profile
2. History of SEIKA CORPORATION
3. Domestic Network
4. Overseas Network
5. Introduction to Each Business
6. Performance Trend
7. Changes in Consolidated Financial Results
8. Trend of Management Indicators
9. Medium-Term Business Plan
10. ESG Initiatives
21

1. Company Profile
Trading name

SEIKA CORPORATIONHead office

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

Establishment

October 1, 1947

Representative

Akihiko Sakurai, President

Capital
Number of employees
Core business

OfficesAffiliated companies
and bases

6,728 million yen

Head office:Shin-Tokyo Bldg., Marunouchi

Non-consolidated: 311／Consolidated: 993 (As of September 2022)
Plants, machinery and equipment, environmental protection equipment, sale, importand export of electronic information system equipment
18 offices in Japan, including head office, Osaka branch, Fukuoka branch andHiroshima branch
3 offices overseas including Taipei branch, Seoul branch and Viet Nam Office
12 affiliated companies in Japan and 16 affiliated companies overseas
78 bases in Japan and 26 bases overseas
222. History of SEIKA CORPORATION (1)October 1947

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

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

October 1961

Listed shares on the First Section of the Tokyo Stock Exchange

January 1974

Established the subsidiary Seika Sangyo GmbH in Germany (Dusseldorf)

May 1983

Opened the Taipei Branch in Taiwan (Taipei)

November 1983

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

April 1994

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

July 2000

Opened the Seoul Branch in Korea (Seoul)August 2001

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

January 2004

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

April 2005

Acquired 100% ownership of Nippon Daiya Valve Co., Ltd.
23

2. History of SEIKA CORPORATION (2)February 2010

Acquired 100% ownership of TAKEMOTO AND COMPANY LIMITED

April 2012

Established Seika Digital Image CORPORATION

December 2012

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

May 2015

Established Meinan Kyodo Energy

March 2016

Acquired 100% ownership of Shikishimakiki Corporation

January 2019

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

December 2019

Opened the Tsuruga Office

October 2020

Established Seika Daiya Engine Co., Ltd.

April 2022

Transferred to the TSE Prime market

June 2022

Shifted from a company with a board of company auditors to a company with an audit andsupervisory committee24

3. Domestic Network
 Subsidiaries and Affiliates

 SEIKA CORPORATIONTokyo, Osaka, Muroran, Nagoya, Shikoku, Okayama, Tsuruga,
Fukuyama, Hiroshima, Higashi Hiroshima, Tokuyama, Yamaguchi,
Fukuoka, Kita Kyushu, Oita, Nobeoka, Nagasaki, Sapporo

Nippon Daiya Valve Co., Ltd.
Tokyo, Osaka, Nagoya, Okayama, Kita Kyushu
TAKEMOTO AND COMPANY LIMITED.
Kobe, Takasago, Mihara, Tokuyama
Seika Digital Image CORPORATION. Tokyo
Shikishimakiki Corporation
Head Office in Sapporo, Hokkaido and ten otheroffices in Hokkaido
Seika Daiya Engine Co., Ltd.
Tokyo Head Office
Tohoku, Kanto, Chubu, Kinki, Kyushu areas
26 offices nationwide
Tozai Jitsugyo Co., Ltd. Tokyo
MEINAN KYODO ENERGY Co., Ltd. Chita
Seiwa Polymer Tsukuba
S TEC Co., Ltd. Tokyo, Osaka, Tsukuba
TEN FEET WRIGHT INC.
Tokyo, Osaka, Takamatsu, Fukuoka
JAPAN EJECTOR ENGINEERING Co., Ltd.
Osaka, Wakayama

25

4. Overseas Network26

5. Introduction to Each Business (Power Plant)
Energy-one of the mostimportant themes for industry[Business Activities]- Sales of and after-the-sale services for power
generation equipment such as boilers and gas turbines
for thermal power plants for commercial use andenvironmental preservation equipment- Sales of disaster prevention- and security-related
equipment and various devices for nuclear power
plants<Power plant>- Sales of and after-sales services for renewable energy
power generation equipment (small hydroelectric
power, wind power, biomass, etc.)<Power generation equipment>27

5. Introduction to Each Business (Chemicals and Energy Plant)
A wide range of products spanning energy
generation and manufacturing processes[Business Activities]- Sales of and after-sales services for power generationequipment and environmental load-reducing products
for companies such as petroleum refineries andchemicals, paper and steel plants<Chemicals Plant>- Sales of equipment and fuels for biomass power
generation- Sales and maintenance of ship engines (Seika Daiya
Engine Co., Ltd., Shikishimakiki Corporation)<Fuels for biomass power
generation equipment><Environmental protection equipment>28

5. Introduction to Each Business (Industrial Machinery)High value-added products that
support affluent and comfortableliving environments[Business Activities]-

Sales of manufacturing equipment for industries
such as EV-related industries, new materials,
textiles, films and beverages.

-

Sales of machinery and equipment for plantengineering companies-

Sales of measuring instruments for environmental
preservation for industrial machinery-

Inspection service using drones equipped withultrasonic inspection systems-

Manufacturing and sales of various industrial valves(Nippon Daiya Valve Co., Ltd.)-Sales of advanced measuring instruments andsoftware (Seika Digital Image Corporation)<Ultra-lightweight solar panel><Film-related equipment><Drone inspection service><Laser-based gas concentration meter>29

5. Introduction to Each Business (Global Business)[Business Activities]- Europe
Automobile field:

Sale of in-vehicle-related industrial robots

Social infrastructure field: Sale of water pumps for public works anddevelopment of rental business of them
- North America
Automobile field:

Sale and technical support of SMT (Surface
Mounting Technology) equipment mainly for the
automotive parts industry- AsiaIndustrial machinery field: Sale of machinery and equipment mainly for the
automobile, chemical and textile industries

Tsurumi (Europe) GmbH Group
Water pumps

Seika Machinery, Inc.
SMT (Surface Mounting
Technology) equipment for the
automotive parts industry

Seika Sangyo (Thailand) Co., Ltd.
Industrial machinery for the automobile,
chemical and textile industries306. Performance Trend
Consolidated Transaction value, Operating Income and Profit(in million yen)Transaction value

Operating income

Profit2006/3 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3

2023/3
Forecast

Transaction value 110,727 148,307 156,588 161,261 123,394 120,243 135,717 136,670 126,487 132,033 127,101 150,742 165,585 157,145 140,677 136,273 134,261 170,000
Operating income

2,088

3,634

3,234

3,754

1,406

2,561

3,065

2,824

2,193

3,400

2,174

3,046

2,598

2,118

2,809

2,581

3,824

3,700

Profit

1,198

2,353

1,922

1,889

879

1,441

1,702

1,743

1,399

2,188

1,750

2,140

1,655

1,587

-1,262

2,721

2,246

2,500

31

7. Changes in Consolidated Financial Results
Consolidated Sales value(In million yen)
Sales value - １H

Consolidated Operating Income(In million yen)

Sales value - Full Year85,307

Operating Income - １H

Operating Income - Full Year71,933

3,824

Full-year
Forecast

33,7302019/32020/32021/32022/3860

2018/3

Consolidated Ordinary Income

2,906

2,721
1,655
770

992

986

1,098

2019/32020/32021/32022/32022/3

2,246

1,587
837

1,315
2018/3

2018/32021/3

Profit Attributable to Owners of Parent - Full Year

Full-year
Forecast

2,418
1,284

2020/3

Profit Attributable to Owners of Parent - １H

3,879
3,122

1,304

953

860

2019/3

Ordinary Income - Full Year

2,877

Full-year
Forecast

Consolidated Profit Attributable to
Owners of Parent (In million yen)

(In million yen)
Ordinary Income - １H

2,581

2,118
1,144

2018/3

2,809

2,598

40,452

2019/3Full-year

530

471
2020/32021/3698 Forecast

2022/3-1,26232

8. Trend of Management Indicators
Return on Equity (ROE)

Price Book-value Ratio (PBR)

10

12
10

1.4

7.6

8

2

1.2
1

6
4

1.20

5.9

0.8

5.6

0.60

0.6

0

-4

0.2

-4.7

-6
2018/3

2019/32020/302021/32022/3

2018/3

Price Earnings Ratio (PER)

2019/32020/32021/32022/3

Earnings Per Share (EPS)

25

15

0.50

0.64

0.4

-2

20

0.70

250.00221.87200.00150.00

20.8

10

7.0

10.8

5

8.6

100.0050.00

186.85128.38125.502018/3

2019/30.00-50.00-100.00

0-150.00
2018/3

2019/32020/32021/32022/3-100.73
2020/32021/32022/333

9. Long-Term Vision
VIORB2030

34

Long-Term Vision

VIORB 2030
Supporting the sustainable generationof energy and industrial activities inharmony with the global environment
For the purpose defined above and to help realize a fulfillingsociety, we have formulated the VIORB 2030 long-term vision
for 2030.

Our Purpose
Supporting the sustainable generation of energy and industrial
activities in harmony with the global environment as acorporate group centered on a trading company with strengths
in the areas of energy and industrial infrastructure

Long-Term Vision

VIORB 2030
Priority business domains
Decarbonization

Quickly develop insight into users' needs related to decarbonizationand technological innovation to commercialize solutions

Energy andResources
conservation

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

CirculareconomyAccelerate progress and actions towards a circular economy

DX

View digital transformation from a broad perspective
to seek business opportunities

Long-Term Vision

VIORB 2030
Key management measures
Improve cash management mechanisms to maximize funding capacity

Invest 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 to achieve the SDGs

Streamline the organization and increase productivity
to introduce human resources in priority domains

Clarify strengths based on the unique characteristics of individual group companies
and concentrate company resourcesLong-Term Vision

VIORB 2030
Indicator of results

Consolidated profit target

Transaction value
related to green innovation
for the fiscal year ending
March 31, 2031

Consolidated profit target
for the fiscal year ending
March 31, 2031

120 billion yen

4 billion yen

10. Medium-Term Business Plan
Re-SEIKA 2023
Evolving into a strong and valuable company
through changes and challenges.
April 2020 – March 2023

39

Group Policy
We have established the Seika Corporation Group Policy, Code of Conduct, and Group
Mission to strengthen solidarity and promote the group management of the Seika Group. We
aim to improve our corporate value as a Group by having each Group company and each
employee share these ideals and use them in their daily activities.

Group Policy
Strive for excellence and foster a sustainable society withcorporate integrity.
Code of Conduct
Comply with laws and act with ethical standards to gain thetrust of society.
Group Mission
Create a fulfilling society together.
40

Basic Strategy under Medium-Term Business Plan Re-SEIKA 2023

Re-SEIKA 2023

Evolving into a strong and valuable company
through changes and challenges.

Increase the Group’s RevenueStrengthen the revenue base

Develop new revenue sourcesStrengthen the management baseReorganize Seika Corporation’s individual businesses and the group companies by businessdetails into business units to implement integrated business operations

Divide the Group’s businesses into base revenue and growth revenue.
Push ahead with the optimization of the business portfolio and effectively introduce
management resources as appropriate.

Continuously introduce management resources to the development of new sources of
earnings to accelerate construction of foundations for the Group’s continuous growth.

Stabilize the Group’s financial position. Streamline operations, enhance the workplaceenvironment and develop human resources by introducing and accelerating the IT shift anddigital transformation (DX) to boost organizational strength.
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Numerical Targets underMedium-Term Business Plan Re-SEIKA 2023

Management Numerical Targets (consolidated)
2023/3(100th Term)
Operatingincome3.7

billion yen

Profit attributable toowners of parent

2.5

billion yen(Reference) If profit attributable to owners of parent reaches the management numerical target of 2.5 billion yen
for fiscal year ending March 31, 2023, ROE will be 8% or higher.

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ESG

10. ESG Initiatives
Environment (Expansion of green-innovation products )Result for orders received for green-innovation
products in the fiscal year ended March 31, 2022

Number of Transaction

Amount of Transaction value(In billion yen)

Energy-saving, resource-saving,high efficiency products

11,931

77.4

Pollution-preventing products

992

6.0

Recycled/Reused products

422

0.9

Total

13,34584.3

Social responsibility (workstyle reform)
Promotion of the career advancement of women
Hiring of more women on the management career track, support for the career development of female employees, appointmentof female managers

Promotion of employee health
Adoption of Premium Friday system, encouragement to take paid holidays, payment of cost of influenza vaccinationby the Company, Introduction of flextime system

Development of human resources
Various types of rank-based training, system of sending employees overseas for training

Governance
Measures based on the Corporate Governance Code
Conducted evaluation of effectiveness of Board of Directors (Third-party evaluation)
Established the Nomination Review Committee and the Compensation Review Committee
Outside director (3 people in total, Outside director rate: More than 1/3 of the board)
Provision of information in English
Part of convocation notice, financial results briefing, materials, FACT BOOK
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