Consolidated Financial Statements
Consolidated Statement of Financial Position(Unit: Millions of yen)March 31,2021

March 31,2022

Cash and cash equivalents

24,79630,043

Other current financial assets

78,001

AssetsCurrent assets

Trade and other current receivables
Inventories

Other current assets
Total current assets
Non-current assets

Property, plant and equipment

Goodwill and intangible assets

Trade and other non-current receivables
Other non-current financial assets
Deferred tax assets

Other non-current assets
Total non-current assets

40,50254,553

55,11469,57792,475

221,870

244,999

67,12568,829

8,991

8,097

455

27,931
3,193

879

107,683

12,8118,667

430

28,4084,371

248

110,955

329,553355,954

Trade and other current payables

40,43242,850

Other current financial liabilities

1,897

1,923

Total assets

Liabilities and equity
Liabilities

Current liabilities

Short-term loans

Income tax payables

Short-term employee benefits
Provisions

Other current liabilities

1,315
4,817

778

1,329

64,668
1,808
5,142

686

1,411

106,618

118,491

Long-term loans

13,084

14,468Long-term employee benefits

4,091

3,875

Total current liabilities
Non-current liabilities

Other non-current financial liabilities
Provisions

3,064
184

3,223
285

Deferred tax liabilities

7,331

8,385

Total non-current liabilities

28,06131,014

Other non-current liabilities

304

775

134,679

149,505

Common stock

14,494

14,494Retained earnings

149,946

149,307

Total liabilities
EquityCapital surplus
Treasury stock

Other components of equity

4,438(1,014)
18,392

4,435
(972)

32,351Equity attributable to owners of the parent

186,257

199,616

Total equity

194,874

206,449

329,553355,954

Non-controlling interests

Total liabilities and equity
53

56,047

Nippon Seiki Integrated Report

8,616

6,832

01

(Unit: Millions of yen)

Year ended
March 31,2022
Revenue

223,621

Year ended
March 31,2023
275,776

Cost of revenue(187,514)(237,151)

Selling, general and administrative expenses(38,362)(36,173)

Other expenses(3,350)(4,276)

2,840

Finance income

3,053

3,913

Profit (loss) before tax(1,399)6,490

Income tax expense(3,143)(4,400)Owners of the parent(5,180)1,380

Profit (loss) for the year

(4,543)2,089(85.88)22.87(4,543)2,089

Gross profit

Operating profit (loss)

Finance costs

Profit (loss) for the year
Profit attributable to:Earnings per share attributable to owners of the parent:
Basic earnings (losses) per share (Yen)

Diluted earnings (losses) per share (Yen)Profit (loss) for the year

1,329

(176)

(4,543)637(85.88)38,625

02

1,163
(774)

(263)

2,089

03
ESG Initiatives

Non-controlling interests

36,107

Nippon Seiki Group's Value Creation Process

Other income

Overview of Nippon Seiki Group

Consolidated Statement of Income

709

22.85

Other comprehensive income

04

Items that will not be reclassified to profit or loss, net of tax:

Remeasurements of net defined benefit liabilities (assets)

140

(8)

1,170

reclassified to profit or loss, net of tax

131

1,282

Foreign currency translation adjustments

15,48013,108

reclassified to profit or loss, net of tax

15,48013,108

Total comprehensive income for the year

11,06916,481value through other comprehensive income

Total comprehensive income (loss) that will not be

Items that may be reclassified to profit or loss, net of tax:
Total comprehensive income (loss) that may be
Other comprehensive income (loss) for the year

111

14,391

Owners of the parent

9,467

15,501

Comprehensive income for the year

11,06916,481

Non-controlling interests

1,601

05
Company data

Comprehensive income attributable to:15,612Financial Statements

Gains(losses) on financial assets measured at fair

979

Nippon Seiki Integrated Report54Consolidated Financial Statements
Consolidated Statement of Changes in Equity
For the year ended March 31, 2022

(Unit: Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2021
Comprehensive income
Profit for the year

Commonstock

Purchase of treasury stock
Disposal of treasury stock

Acquisition of non-controlling interest

Transfer from other components of equity to retained earnings
Other

Total transactions with owners
As of March 31, 2022

Other components of equity

Gains (losses) on financial assets measured atfair value through other comprehensive income

Remeasurements of net
defined benefit liabilities (assets)

4,455

157,449(1,045)

7,542

―

―
―
―

―
―
―

(5,180)―(5,180)

―
―
―

―
(8)
(8)

―
124
124

―
―
―
―
―
―
―
―
14,494

―
14
―
(30)
―
―
―
(16)
4,438

(2,412)
―
―
―
―
124
(34)
(2,322)
149,946

―
―
(0)
31
―
―
―
31
(1,014)

―
―
―
―
―
(0)
―
(0)
7,533

―
―
―
―
―
(124)
―
(124)
―

Total comprehensive income (loss)
Transactions with owners

Share-based payment transactions

Treasurystock

14,494

Other comprehensive income (loss)

Dividends paid

Retainedearnings

Capitalsurplus

Equity attributable to owners of the parent

Other components of equity
As of April 1, 2021
Comprehensive income

Foreign currencytranslation adjustments

Profit for the year

Other comprehensive income (loss)

Total comprehensive income (loss)
Transactions with owners
Dividends paid

Share-based payment transactions
Purchase of treasury stock
Disposal of treasury stock

Acquisition of non-controlling interest

Transfer from other components of equity to retained earnings

Other

Total transactions with owners
As of March 31, 2022

Total

Total equity attributableto owners of the parent

Non-controllinginterests

Total equity(3,672)

3,869

179,2227,307

186,530―
14,531
14,531―
14,647
14,647(5,180)14,647
9,467

637
964
1,601

(4,543)
15,612
11,069

―
―
―
―
―
―
―
―
10,858

―
―
―
―
―
(124)
―
(124)
18,392(2,412)
14
(0)
0
―
―
(34)
(2,433)
186,257

(283)
―
―
―
―
―
(8)
(291)
8,616

(2,695)
14
(0)
0
―
―
(43)
(2,725)
194,874

For the year ended March 31, 2023

(Unit: Millions of yen)
Equity attributable to owners of the parent
Commonstock

As of April 1, 2022
Impact of changes in accounting policies
Beginning balance after restatement
Comprehensive income
Profit for the year

Other comprehensive income (loss)

Total comprehensive income (loss)
Transactions with owners
Dividends paid

Share-based payment transactions
Purchase of treasury stock
Disposal of treasury stock

Acquisition of non-controlling interest
Transfer from other components of equity to retained earnings
Other

Total transactions with owners
As of March 31, 2023

Retainedearnings

CapitalsurplusTreasurystock

Other components of equity

Gains (losses) on financial assets measured atfair value through other comprehensive income

Remeasurements of net
defined benefit liabilities (assets)

14,494―
14,494

4,438
―
4,438

149,946258
150,205(1,014)―(1,014)

7,533
―
7,533

―
―
―

―
―
―

―
―
―

1,380
―
1,380

―
―
―

―
1,170
1,170

―
95
95

―
―
―
―
―
―
―
―
14,494

―
14
―
(42)
25
―
―
(2)
4,435

(2,413)
―
―
―
―
162
(26)
(2,277)
149,307

―
―
(0)
42
―
―
―
42
(972)

―
―
―
―
―
(66)
―
(66)
8,637

―
―
―
―
―
(95)
―
(95)
―

Equity attributable to owners of the parent

Other components of equity
Foreign currencytranslation adjustments
As of April 1, 2022
Impact of changes in accounting policies
Beginning balance after restatement
Comprehensive income
Loss for the year

Other comprehensive income (loss)

Total comprehensive income (loss)
Transactions with owners
Dividends paid

Share-based payment transactions
Purchase of treasury stock
Disposal of treasury stock

Acquisition of non-controlling interest

Transfer from other components of equity to retained earnings

Other

Total transactions with owners
As of March 31, 2023

55

Nippon Seiki Integrated Report

Total

Total equity attributableto owners of the parent

Non-controllinginterests

Total equity

10,858―10,85818,392―
18,392

186,257
258
186,515

8,616
77
8,694

194,874
335
195,210―
12,854
12,854―
14,12014,1201,380
14,12015,501

709
270
979

2,089
14,391
16,481

―
―
―
―
―
―
―
―
23,713

―
―
―
―
―
(162)
―
(162)
32,351(2,413)
14
(0)
0
25
―
(26)
(2,400)199,616

(277)
―
―
―
(2,557)―(6)(2,841)
6,832(2,691)14(0)
0(2,531)―(33)(5,241)
206,449

01（単位：百万円）

Year ended
March 31,2022
Cash flows from operating activities:
Profit (loss) before tax

Depreciation and amortization
Impairment loss

Interest and dividends income
Gains and losses related to step acquisition(Gain)(Gain) loss on sale of property, plant and equipment(Increase) decrease in trade and other receivables(1,399)Year ended
March 31,2023

6,490

11,916

12,068(1,481)(2,669)

3,090
169
―

81

4,063

291

(1,498)

2,428

03

132

(323)

(10,311)(Increase) decrease in inventories(19,577)(19,263)

Increase (decrease) in provisions

(765)

(91)

Increase(decrease) in trade and other payables
Increase (decrease) in retirement benefit liabilities
Foreign exchange losses(gains)
Other, net
SubtotalInterest and dividends received

179
407

(906)

(310)
39

(29)

(3,447)(15,211)

(170)

(286)

1,524

Income taxes paid

(3,284)(4,989)Net cash provided by operating activities(5,437)(18,057)(Increase)decrease in time deposits, net(369)

Other, net

Cash flows from investing activities:

Purchase of property, plant and equipment and intangible assets

Proceeds from sale of property, plant and equipment and intangible assets
Purchase of investment securities

Proceeds from sale of investment securities
Increase in loans receivableCollection of loans(7,473)
(69)

(81)

(7)

(12)

(120)

(1,518)

(2)

(33)

572

1,175
110

(1,334)

Net cash used in investing activities(7,518)Cash flows from financing activities:(Decrease) increase in short-term loans, net
Proceeds from long-term loans

Repayments of long-term loans

Repayments of lease obligations

Dividends paid to non-controlling interests
Net decrease (increase) in treasury stock

Expenses due to redemption of corporate bonds

Net cash used in financing activities

Foreign currency translation adjustments on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

3,000
7,040

597
80

―

19,713
4,100

13,000(10,755)(7,837)

(296)

(402)

(2,075)0(2,411)――(5,498)
1,601(16,853)
41,65024,79604

122(1,856)005(2,413)(2,531)Company data

Expenditures due to acquisition of subsidiary shares without change in scope of consolidation

30,108(9,548)

Payments for investments in associates
Other, net―

Financial Statements

Purchase of investments in subsidiaries resulting in change in scope of consolidation(60)

ESG Initiatives

Interest paid

773

02

263

Nippon Seiki Group's Value Creation Process

Interest expense

Dividends paid to owners of the parent

Overview of Nippon Seiki Group

Consolidated Statement of Cash Flows

(30)

2,028
1,562
5,246

24,79630,043

Nippon Seiki Integrated Report56

Directors

6 Kazuhiko Murayama

4 Yuji Osaki

11 Toshihiko Enomoto

1 Koichi Sato

Representative Director,
President Chief Executive Officer
Apr. 1985
Apr. 2006
Jun. 2011
Jun. 2013
Apr. 2017
Jun. 2019
Jun. 2020

Joined Nippon Seiki Co., Ltd.
Vice President NS International, Ltd.
Director
Managing Director
Senior Representative Director
Representative Director
PRepresentative Director, President CEO(Present)

4 Yuji Osaki

Director/Managing Officer

Mar. 1982
Jun. 2014
Oct. 2016
Apr. 2018
Jun. 2019
Jun. 2020
Jun. 2022
Apr. 2023

Joined Nippon Seiki Co., Ltd.
Operating Officer
Senior Manager of Business Supervison dept. 1,
Business Headquarter
Chief of Sourcing Headquarter
Senior Operating Officer
Director/Manageing Officer (Present)
Chief of Sourcing Headquarter,
In charge of Sourcing, Sensor・EMS・
Parts Business,Consumer Business Headquarter
Region in Charge Japan (Present)

7 Tatsuya Nagai
Director（Auditor）

Mar. 1982
Mar. 2003
No. 2006
Apr. 2014
Jun. 2018
Jun. 20192 Keiichi Nagano

Joined Nippon Seiki Co., Ltd.
Senior Manager Corporate Planning dept.
Senior Manager Business Promotion dept.
Senior Manager Internal Audit Office
AuditorDirector (Auditor)(Present)

3 Masatoshi Azuma

1 Koichi Sato

8 Etsuo Saiki

5 Masahiro Yoshihara
9 Eiko Tomiyama

2 Keiichi Nagano

Director/Senior Managing Officer

Apr. 1989
Nov. 2016
Apr. 2020
Jun. 2020
Jun. 2021
Jun. 2022
Apr. 2023
Jun. 2023

Joined Nippon Seiki Co., Ltd.
Director, Nippon Seiki（Europe）B.V.
Operating Officer Instrument Design Headquarter
Senior Operating Officer
Director, Senior Operating Officer
Director/Manageing Officer
Chief of Automotive System Design Headquarter
In Charge of Engineering Headquarter
Region in Charge：Europe (Present)
Director/Senior Manageing Officer (Present)

5 Masahiro Yoshihara
Director/Managing Officer

Sep. 1985
Oct. 2016
Apr. 2021
May. 2021
Jun. 2022
Apr. 2023
Jun. 2023

Joined Nippon Seiki Co., Ltd.
Shanghai Nissei Display System Co., Ltd.
Operating Officer
Chief of Production Engineering Headquarter
Director/Senior Operating Officer,
Chief of Production Engineering Headquarter
In Charge of Production, Production Engineering,
Quality Assurance Headquarter,
Region in Charge: Americas (Present)
Manageing Officer(Present)

8 Etsuo Saiki

Outside Director（Auditor）

Apr. 1979
Apr. 1979
Apr. 1983
Apr. 2002
Apr. 2003
Apr. 2004
May. 2009
May. 2015
Jun. 2019

Registered as an Attorney
Joined Kiichi Sakai Attorney OfficeOpened Sakai・Saiki Attorney OfficeNiigata University Faculty of Law Affiliate Professor
Niigata Regional Court Civil Mediator
Niigata University Practical Law Associate Professor
Chairperson Asahi Niigata Legal Office (Present)
AuditorDirector (Auditor)(Present)

3 Masatoshi Azuma
Director/Managing Officer
Apr. 1984
Jun. 2014

Jun. 2018
Jun. 2020
Apr. 2021
Apr. 2023

Outside Director（Auditor）

Apr. 1975
Sep. 2000
Jun. 2003
Jun. 2005
Jun. 2007
Jan. 2014
Jun. 201957

Joined Sanden Holdings
Quality Manager Sanden Holdings
Technical Officer Sanden Holdings
Technical Director Sanden Holdings
Director Engineering, IT, Corporate
Management Sanden Holdings
Senior Operating Officer Paramount Bed Co., Ltd.
Director (Auditor)(Present)

Nippon Seiki Integrated Report

11 Toshihiko Enomoto
Outside Director（Auditor）

Apr. 1985
Aug. 2008
Jun. 2013
Jun. 2015
Jun. 2016
Jun. 2021
Jun. 2023

Joined NSK Ltd.
Accounting Senior Manager NSK Ltd.
Operating Officer, Deputy Chief ofFinancial Headquarter NSK Ltd.
Director, Audit Manager NSK Ltd.
Director, Audit Committee Member
Director NSK Ltd.
Director (Auditor)(Present)

Joined Nippon Seiki Co., Ltd.
Operating Officer,
Engineering Headquarter Automotive Instrument
Design Supervision dept. Deputy Senior Manager
and HUD Engineering dept. Senior Manager
Senior Operating Officer
Managing Director (Present)
Chief of Corpoarte Management Headquarter
Region in Charge：ASEAN/Taiwan(Present)
In Charge of Corpoarte Management Headquarter
Region in Charge：ASEAN/Taiwan/India(Present)

6 Kazuhiko Murayama
Director/Senior Operating Officer

Apr. 1985
May. 2015
Apr. 2019
Apr. 2021
Jun. 2021
Jun. 2022
Apr. 2023

Joined Nippon Seiki Co., Ltd.
Managing Officer, Nissei Display Sales andDevelopment Co., Ltd.
Oparating Officer Business Headquarter International
Business Supervision dept.
Chief of Automotive Business Headquarter
Senior Operating Officer
Director/Senior Operating Officer(Present),
Chief of Automotive Business Headquarter
In Charge of Automotive Business, HUD Business,
Instrument Business Headquarter
Region in Charge: Americas (China)

9 Eiko Tomiyama
Outside Director（Auditor）

Apr. 1986
Aug. 1989
Apr. 1994
Mar. 2002
Apr. 2006
Apr. 2010
Apr. 2014

10 Kiyoshi Suzuki

7 Tatsuya Nagai

10 Kiyoshi Suzuki

Jun. 2018
Jun. 2019

Joined Itoman
Niigata Television Translator, Intenational
Communication
Niigata Regional Court Legal Interpreter
Ph.D (Economics) Niigata University Modern Society
Culture Research
Assosiate Proffessor Graduate Institute for
Entrepreneurial Studies
Proffessor Graduate Institute for Entrepreneurial
Studies (Present)
Vice President Graduate Institute for Entrepreneurial
Studies (Present)
AuditorDirector (Auditor)(Present)Integrated Report Review
01
Overview of Nippon Seiki Group

Biography

Nomura Institute of CapitalMarkets Research
Head of Nomura Sustainability
Research Center

Akane Enatsu

Literary works

Japanese Local Government Bonds (Single Author), The Era of
Sustainable Finance - ESG/SDGs, Bonds market (Co-author) etc.

02

As written above, this integrated report clarifies that management that integrates financial and non-financial aspects is
progressing smoothly. On the other hand, there are also somechallenges. Since countries and regions around the world accelerate efforts for transition to a decarbonized society and realize asustainable society, greater disclosure of non-financial information
is increasingly demanded by stakeholders. Simultaneously, in
addition to efforts by the International Sustainability Standards
Board (ISSB) to develop global sustainability disclosure
standards, some countries and regions are also beginning to
make disclosure mandatory.
Needless to say, it is important for Nippon Seiki, which has awide group network not only in Japan, but also in the US, Europe,and Asia, to be even more aware of these trends and to respondaccordingly.
For example, focusing on the environment (E), Nippon Seiki
currently sets CO₂ emissions reduction targets based on Scope 1
and Scope 2. But the number of companies which are aiming to
reduce CO₂ emissions in the supply chain, i.e, Scope 3 is increasing globally. Furthermore, disclosure frameworks are being
developed around the world, not only for climate-related topics,
but also for topics such as biodiversity and natural capital.
Therefore, preparations and responses concerning environmental
issues are required.
Moreover, as ESG investment evolves in the global financial
market, an increasing number of investors are trying to determine
whether ESG-related initiatives by companies truly contribute toincreasing value. In that sense, using data to clearly explain the
logic of how ESG-related initiatives can lead to increased
corporate value, along what path and over what time frame, will
help to bring Nippon Seiki's appeal to the financial market. It is
assumed that this will become increasingly important in communicating correctly.
This integrated report can be said to be a meter for measuring
the progress and direction of the value creation process for
Nippon Seiki. I hope that Nippon Seiki will continue to develop
more and more, and its corporate value will further increase
through information disclosure.

Nippon Seiki Group's Value Creation Process

03
ESG Initiatives

04
Financial Statements

This is the third year that Nippon Seiki has published the integrated report. It aims to strengthen its earnings structure throughmedium-term management reforms and to take an "outside-inbusiness approach" to develop its business by focusing on solvingsocial issues. The company's ongoing initiatives, namely its
commitment to management that integrates financial andnon-financial aspects, are more clearly demonstrated in the reportcompared to the previous ones.
As for finance, in the midst of a period of transformation for the
automobile industry, the company has a system in place tocontinuously run the PDCA cycle by setting KPIs for eachbusiness field and monitoring progress, thereby achieving thecompany's goal of maximizing added value. This indicates steadyprogress towards minimizing fixed costs.
Among non-financial aspects (ESG), in relation to the environment (E), Nippon Seiki announced its support for the TCFD
recommendations in September 2022 and joined the TCFD
consortium. Then, information disclosure based on the four
disclosure items i.e., governance, strategy, risk management,
indicators, and targets by the TCFD Recommendations has beenenhanced. As of the end of September 2023, approximately 5,000
financial institutions and companies around the world and 1,500 in
Japan have endorsed the TCFD. It is expected for Nippon Seiki,
which is expanding its business around the world, that this willcontribute to the expansion and facilitation of future transactions.
In relation to society (S), the company established a humanrights policy in February 2023 while expanding its efforts in humancapital management through human resource development,enriching the workplace environment, health management, etc.
The company is already promoting human rights due diligence,and it is believed that appropriate responses to human rights
issues will help avoid damage to corporate value and maintainand improve it.
In terms of corporate governance (G), the company explainedthat efforts are being made to continue to improve the board of
directors, expand risk management and compliance promotion
systems, ensure the safety of intellectual property and usefulrights, and strengthen the utilization of rights.

She received a Master of Business Administration (Oxford University)and PhD in Economics (Saitama University)
She joined Nomura Capital Markets Research Institute in 2012 afterworking at Goldman Sachs Securities, Nikko Citigroup Securities,
etc. and has been in her current position since December 2019. Her
research interests include national and local finance, credit analysis
and ratings, and sustainable finance. She has served as a committee
member of the government, local governments, etc.

Message | Upon publication of the Integrated Report 2023

Masatoshi Azuma

Company data

Director and Managing Executive Officer
In charge of business management
headquarters

05

Thank you for reading the Integrated Report 2023. We have tried to convey in an easy-to-understand manner of how our group's business activities utilize our "strengths" based upon ourmanagement philosophy and aim to balance business development with solving social issues,or value creation process.
continuing to transform into a more lean or muscular corporate structure, we are drawing up
growth strategies through various challenges and moving forward toward the next medium-term
management plan, which is currently being formulated. We hope that this information will help
you understand the Group's medium- to long-term value creation.
We will continue to value opportunities for dialogue with everyone, strive to disclose information in a timely and appropriate manner, and endeavor to further improve corporate value.

Nippon Seiki Integrated Report58