Corporate Name: Nifco Inc. (URL: https://www.nifco.com/en/)
Stock Exchange: Prime Market; Code Number: 7988
President & CEO: Masaharu Shibao
Inquiries to: Toshiki Yauchi, Director, Senior Executive Managing Officer & CFO (+81-3-5476-4853)
Dividend disbursement to be started on: －Preparation of supplementary reference materials for financial results: Yes
Holding financial results briefing: None

July 31, 2024

Summary of Consolidated Financial Resultsfor First Quarter of Fiscal Year Ending March 31, 2025
(These figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for Three Months of FY2024 (April 1 to June 30, 2024)(The percentages denote year-on-year change.)(1) Consolidated financial results
Net sales
Million yen
First Qtr. FY2024
First Qtr. FY2023
Note:

%

Million yen

86,13987,977

Comprehensive income:

(2.1)
21.1

Million yen
17.2
28.0

%

14,145
13,4085.5
19.3

15,975 million yen in First Qtr. FY2024 [42.1%], 11,240 million yen in First Qtr. FY2023[(25.3)%]

owners of parent
Million yen

Note:

%

11,88910,146

Profit attributable toFirst Qtr. FY2024
First Qtr. FY2023

Ordinary profit

Operating profit

Basic earning per share

Diluted earning per share

Yen

Yen

%

8,842
9,728

(9.1)
21.1

89.97
97.50

88.87
―

Diluted profit attributable to owners of parent per share of First Qtr. FY2023 is not shown in the above table, as there is nopotential common share with dilution effect.

(2) Consolidated financial position
Total assets

Net assets

Net assets ratio

Net assets per share

Million yen

Million yen%

Yen

First Qtr. FY2024

365,314

252,80768.4

2,559.68

FY2023

380,405

247,05264.1

2,455.97

Reference:

Equity capital:

249,716 million yen in First Qtr. FY2024,

243,695 million yen in FY2023

2. Dividends
Dividend per share
At end of firstAt end of second

At end of third

quarterquarterquarterYen

Yen

FY2023―

FY2024―Yen

FY2024 (forecast)
Note:

32.00
35.00

Net sales
Million yen
Note:

FY

Yen

Yen

―

32.00

64.00

―

35.00

70.00

Revision of the latest forecast of cash dividends: None

3. Forecasts for FY2024 (April 1, 2024 to March 31, 2025)

FY2024

At end of FY

340,000

Operating profit%

Million yen%

45,000

2.4(8.5)(The percentages denote year-on-year change.)

Ordinary profit
Million yen

Profit attributable to

Basic earning perowners of parent

share

%

Million yen

44,200 (11.0)

26,100

Revision of the latest forecasts: None

- 1 -

%
43.0

Yen
262.05

4. Others(1) Changes in principal subsidiaries during the fiscal year (changes in specific subsidiaries, which involve changes in the scope of
consolidation): Yes
New consolidation: — company (company name): —Exclusion: 2 companies (company name): Nifco Germany GmbH,
Nifco KTW America Corporation
The company’s specific subsidiaries Nifco Germany GmbH and Nifco KTW America Corporation were omitted from specificsubsidiaries due to the completion of business transfers in April 2024.
(2) Adoption of specific accounting policies for quarterly consolidated financial statement: Yes(3) Changes in the principles and procedures of accounting concerning the preparation of consolidated financial statements and in themethods of presentation, etc. (stated in “Changes in Significant Accounting Policies for Preparing Consolidated Financial Statements”)
1) Changes following the revision of accounting standards, etc.:
2) Changes other than 1):

None
None

3) Changes in accounting estimates:
4) Retrospective restatement:

None
None

(4) Number of shares outstanding (common stocks)
1) Number of shares outstanding at end of the period (including treasury stocks)
1Q of FY2024

100,257,053

FY2023

100,257,053

FY2023

1,031,017

1Q of FY2023

99,780,742

2) Number of treasury stocks at end of the period
1Q of FY2024

2,699,366

3) Average number of shares outstanding during the period
1Q of FY2024

98,284,209*Quarterly review conducted by certificated public accountants or an audit corporation of the attached quarterly consolidated
financial statements: None
* Proper use of earnings forecasts and other special matters
Forward-looking statements or projections included in this document, including earnings projections, are based on currently
available information and certain premises that are judged to be rational at the time of this writing. Actual results may differ
greatly from the forecast figures depending on various factors. For assumptions used for earnings forecasts and notes on theuse of earnings forecasts, etc., please refer to “I. Quarterly Consolidated Financial Statements and Main Notes, (iii)
Information regarding consolidated earnings forecasts and other forward-looking statements” on page 5 of the Attached
Materials.

- 2 -Contents of Attachment
I. Quarterly Consolidated Financial Statements and Main Notes ......................................................................................................... - 4 (i) Explanation of operating results ...................................................................................................................................................... - 4 (ii) Explanation of financial position .................................................................................................................................................... - 5 (iii) Information regarding consolidated earnings forecasts and other forward-looking statements ..................................................... - 5 Ⅱ. Quarterly Consolidated Financial Statements and Main Notes ........................................................................................................ - 6 (i) Consolidated Balance Sheet............................................................................................................................................................. - 6 (ii) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (cumulative) .................................... - 8 (iii) Notes in Relation to the Consolidated Financial Statements ......................................................................................................... - 9 - Notes regarding the going concern assumption .................................................................................................................................. - 9 - Notes on significant changes in the amount of shareholders’ equity .................................................................................................. - 9 - Adoption of specific accounting policies for quarterly consolidated financial statement................................................................... - 9 - Additional information ....................................................................................................................................................................... - 9 - Consolidated statements of balance sheet .......................................................................................................................................... - 9 - Consolidated statements of income and comprehensive income ........................................................................................................ - 9 - Notes in relation to the quarterly consolidated statement of cash flows ............................................................................................. - 9 - Segment Information, etc. ................................................................................................................................................................ - 10 - Notes Significant Events After Reporting Period Consolidated Financial Statements ..................................................................... - 10 -- 3 -

I. Quarterly Consolidated Financial Statements and Main Notes(i) Explanation of operating results
For the first three months ended June 30, 2024, business sentiment in Japan’s economy improved, with the manufacturing sector
experiencing lessening impact from suspension of production and shipments in association with the scandal that some automobile
manufacturers were embroiled in, and the progression of price pass-through mainly in the materials industry sector. Meanwhile, inthe non-manufacturing sector, business sentiment related to logistics improved amid the progression of price pass-through and anincrease in online trade, despite weak areas in the market, mainly in retailing, due to lackluster personal consumption in reaction
to the high price of goods. Looking overseas, in the Chinese economy, a recovery in lunar new year demand stimulated economic
activity mainly in domestic tourism and food services, and retail sales also increased. China also increased its exports ofautomobiles, consisting mainly of EVs, and household electrical appliances, putting an end to the downward trend. In theEuropean economy, overall business activities continued to be weak, due to a continuing decline of intermediate goods amid
lackluster global demand for such goods, and a decline in the production of consumer durables in reaction to monetary tightening,among other factors. In the U.S. economy, overall business sentiment in the non-manufacturing sector received a boost from an
expansion in business activities and increases in new orders, despite a fall in employment. Meanwhile, corporate businesssentiment in the manufacturing sector improved due to an overall lift provided by manufacturing activities in industrial
production, such as those related to electricity and gas and other utilities, as well as automobiles, etc., despite a decline in mining
operations. As a result, the global economy was correcting toward improvement in corporate business sentiment. Breaking thisdown by country and region, business sentiment in the U.S. and Asia was favorable, with significant improvement observed in
China. However, due to the development of strengthening demand in the U.S. at a faster rate than expected, there is a possibility
that the U.S. and Europe will strengthen defensive measures against surplus production in China, which continues to make theoutlook uncertain.
With regard to automobile manufacturers, which are the main customers of Nifco Inc. (the “Company”) and its consolidated
subsidiaries (collectively, the “Group”), in the Japanese market, both production volume and sales volume decreased year on year
in the first three months ended June 30, 2024. In overseas markets, production volume and sales volume decreased in the U.S.,
while in Europe, sales volume increased but production volume decreased, both year on year in the first three months ended June30, 2024. In China and India, both production and sales volumes significantly increased year on year.
As a result, the Group’s net sales for the first three months ended June 30, 2024 amounted to 86,139 million yen, down 2.1% year
on year.
In terms of profits, operating profit increased 17.2% year on year to 11,889 million yen, due to the transfer of the businesses ofNifco Germany GmbH and Nifco KTW America Corporation, which experienced increasing hardship in the German OEM
business, and reductions in selling, general and administrative expenses through initiatives to reduce controllable expenses.
Ordinary profit increased 5.5% year on year to 14,145 million yen due mainly to foreign exchange gains resulting from theweaker yen. As a result of recording income taxes of 5,057 million yen, profit attributable to owners of parent decreased 9.1%
year on year to 8,842 million yen.

Results by segment are as follows.
Net sales in each segment are to external customers.

(1) Industrial plastic parts & components
In the industrial plastic parts & components business, net sales in Japan decreased due to a lull in automobile production
activities. Overall net sales overseas decreased partly due to the transfer of the businesses of Nifco Germany GmbH and
Nifco KTW America Corporation, which had conducted businesses for German customers, despite a recovery in automobile
production activities in the U.S., China and India, among others, and foreign exchange effects of a weaker yen. As a result,net sales for industrial plastic parts & components decreased. In terms of profits, the transfer of the businesses of Nifco
Germany GmbH and Nifco KTW America Corporation, which had conducted businesses for German customers, andreductions in selling, general and administrative expenses through initiatives to reduce controllable expenses led to increased
profits.
As a result, net sales in the industrial plastic parts & components business for the first three months ended June 30, 2024
decreased 3.5% year on year to 77,072 million yen. Segment profit increased 19.2% year on year to 12,028 million yen.
(2) Bedding & furniture
In the bedding & furniture business, both net sales and profits increased due to higher demand from hotels in Japan andoverseas, growth in sales to retailers in Japan, firm performance in wholesale and retail sales overseas, mainly in China, and- 4 -the foreign exchange effects of a weaker yen.
As a result, net sales in the bedding & furniture business for the first three months ended June 30, 2024 increased 11.2% year
on year to 9,067 million yen. Segment profit increased 6.1% year on year to 1,455 million yen.

(ii) Explanation of financial position
Assets as of June 30, 2024 stood at 365,314 million yen, a decrease of 15,091 million yen from the end of the previous fiscal
year. The main factors for the decrease were a 3,929 million yen decrease in merchandise and finished goods and a 2,943 million
yen decrease in accounts receivable - trade. In addition, cash and deposits decreased by 6,357 million yen.
Liabilities as of June 30, 2024 stood at 112,507 million yen, a decrease of 20,846 million yen from the end of the previous fiscal
year. The main factors for the decrease were decreases of 8,755 million yen in allowance for losses on business transfer and 5,256
million yen in short-term borrowings.
Net assets as of June 30, 2024 stood at 252,807 million yen, an increase of 5,755 million yen from the end of the previous fiscal
year. The main factors for the increase were increases of 5,654 million yen in retained earnings and 7,090 million yen in foreign
currency translation adjustment due to yen depreciation, despite an increase of 6,426 million yen in treasury shares.

(iii) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the consolidated financial forecasts announced on May 13, 2024.

- 5 -Ⅱ. Quarterly Consolidated Financial Statements and Main Notes(i) Consolidated Balance Sheet(Millions of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - trade
Contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Molds,net
Land
Leased assets, net
Construction in progress
Other
Total property, plant and equipment
Intangible assets
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- 6 -As of June 30, 2024

149,784
1,750

143,427
1,805

8,114

8,290

57,4101,171
1,144
27,414
3,173
10,2899,844(292)
269,806

54,467505
16
23,484
2,550
9,126
8,503
(282)
251,895

45,61817,675
3,966
4,614
18,973
46
2,851
3,207
96,953
1,407

46,401
17,925
4,036
4,596
20,576
49
3,337
3,065
99,987
1,537

4,764
1,847
2,829
2,797
(0)
12,238110,599
380,405

4,362
1,903
2,846
2,781
(0)
11,894
113,419
365,314

(Millions of yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of bonds payable
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Provision for bonuses
Allowance for losses on business transfer
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 7 -As of June 30, 2024

26,601－
5,529
10,075
6,543
5,523
4,899
2,924
10,068
11,92484,091

26,27010,000272
10,060
6,507
4,863
4,567
1,169
1,313
10,76575,79035,000
285
6,344
1,886
5,746
49,262
133,353

25,000
270
6,215
1,852
3,378
36,716
112,5077,290－
215,302(3,608)218,983

7,290－
220,956(10,035)
218,210

2,028

1,689

(21)
6
23,019(320)
24,712
3,356
247,052
380,405(16)
6
30,110(284)
31,505
3,091
252,807
365,314(ii) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (cumulative)(Millions of yen)Three months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Gain on valuation of investment securities
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 8 -Three months ended
June 30, 2024

87,97764,142
23,834
13,687
10,146

86,13960,272
25,867
13,978
11,889

139
34
3,119
230
3,524

326
33
1,701
309
2,371

172
89
262
13,40867
47
114
14,145

100
100

3
3

44
44
13,464
3,543
9,921

13
13
14,136
5,057
9,078

9,728
192

8,842
235

344
16
995
(37)
1,319
11,240

(338)
5
7,194
35
6,896
15,975

11,000239

15,636338

(iii) Notes in Relation to the Consolidated Financial Statements- Notes regarding the going concern assumption
Not applicable.

- Notes on significant changes in the amount of shareholders’ equity
Not applicable.

- Adoption of specific accounting policies for quarterly consolidated financial statement
Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effect accounting to profit
before income taxes for the current fiscal year, including the three months ended June 30, 2024, and multiplying profit
before income taxes by the estimated effective tax rate.

- Additional information
Disposal of treasury stock by third-party allotment
At the meeting of the Board of Directors held on May 17, 2024, the Company passed a resolution to introduce an incentive
plan that grants common shares issued by the Company as a special incentive contribution to the members of the Nifco
Employees Stock Ownership Association with the intention of improving motivation of employees to enhance theCompany’s medium- and long-term shareholder value. The Company conducted a disposal of treasury shares through thirdparty allotment in which the Nifco Employees Stock Ownership Association was the disposal recipient on July 25, 2024.

Overview of disposal of treasury shares(1)Date of disposal

July 25, 2024

(2)Class of shares to be disposed of

The Company’s common stock(3)Number of shares to be disposed of

77,320 shares(4)Disposal value

3,862 yen per share(5)Total value of disposal

298,609,840 yen(6)Method of disposal

Third-party allotment(7)Allottee

Nifco Employee Stock Ownership Association- Consolidated statements of balance sheet
Contingent liability
On-site investigation by Korea Fair Trade Commission
Our Korean consolidated subsidiary was subject to an on-site investigation by the Korea Fair Trade Commission (South
Korea) on July 5, 2023 (local time), on suspicion of violating the Monopoly Regulation and Fair Trade Act in relation to
trade in industrial plastic parts & components products.
Although the investigation is still ongoing, the results may have an impact on the Group's business results and financial
position.

- Consolidated statements of income and comprehensive income
Not applicable.

- Notes in relation to the quarterly consolidated statement of cash flows
The Company has not prepared the quarterly consolidated statement of cash flows for the first three months ended June 30,2024. Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill forthe first three months ended June 30, 2024 are as follows.
(Unit: Millions of yen)Three months ended
June 30, 2023
Depreciation
Amortization of goodwill- 9 -Three months ended
June 30, 2024
3,424

3,226

82

–

- Segment Information, etc.
[Business segment information]- For the First Quarter of FY2023 (April 1 to June 30, 2023)(Unit: Millions of yen)

Reportable segments

Amount reported inconsolidated
financial statements

Adjustment

Industrial plastic parts& components

Bedding & furniture(1) Net sales to external customers

79,8268,150

87,977-

87,977(2) Intersegment sales or transfers

-

-

-

-

-

79,8268,150

87,977-

87,977

10,092

1,371

11,463(1,317)

10,146Total

Net sales and segment profit (loss)
Net sales

Total
Segment profit (loss)(Notes) 1.

Adjustment of segment profit (loss) of (1,317) million yen represents corporate expenses. Corporate expenses are
general and administrative expenses not attributable to reportable segments.

2.

Segment profit (loss) is adjusted for operating profit in the consolidated statement of income and statement ofcomprehensive income.

- For the First Quarter of FY2024 (April 1 to June 30, 2024)(Unit: Millions of yen)

Reportable segments

Amount reported inconsolidated
financial statements

Adjustment

Industrial plastic parts& components

Bedding & furniture(1) Net sales to external customers

77,072

9,067

86,139-86,139(2) Intersegment sales or transfers

-

-

-

-

-

77,072

9,067

86,13912,0281,455

13,484Total

Net sales and segment profit (loss)
Net sales

Total
Segment profit (loss)(Notes) 1.
2.

86,139(1,595)

11,889Adjustment of segment profit (loss) of (1,595) million yen represents corporate expenses. Corporate expenses are
general and administrative expenses not attributable to reportable segments.
Segment profit (loss) is adjusted for operating profit in the consolidated statement of income and statement ofcomprehensive income.

- Notes Significant Events After Reporting Period Consolidated Financial Statements
Not applicable.

- 10 -