NIPPON SEIKI
Integrated Report2023

Philosophy and Policies
Management Philosophy System

Philosophy
CorporateCulture

VisionCode of Conduct

Midterm Policy / Management Goal /Policy・Target by Segment

Social Issues for Complying Stakeholder’s Expectation

Management Philosophy

To contribute to the prosperity of society
by providing high-value products andservices from our customer s point of view.
Corporate Culture「Essentials, Reality, Simplicity and Speed」
Create a corporate culture that embodies the aspects of“Essentials, Reality, Simplicity and Speed” and become a “strong and robust company”

01

Nippon Seiki Integrated ReportVisionFacing the future

Challenge & Changefor 2030
The Nippon Seiki Group aims to be a total solution company that provides

safety, security and excitement to people around the world through technology.

TechnologyTotal Solution

ProductDevelopment
Technology

Technology to develop products that meets high-grade functional requirements byunderstanding customer requirements and market needs, combining hardware design
technology (mechanical/electronics hardware/optical design, etc.) and software technology(system/program design, etc.), and coordinating with customers.

Evolution of coretechnologies

Technologies which enable the global supply of high-quality, low-cost products by possessing
manufacturing technology for resin-based parts (compounding, molding, printing, painting,etc.), mounting and assembly technology for printed circuit board artwork and electronic
components, and design/manufacturing technology for production equipment and molds, andutilizing these technologies at the Group's production bases.

Innovation ofLifestyle

Technology to collect, process, and share information by function (management information,sales/design/engineering/manufacturing/purchasing/quality information, etc.), as well as
technology to accumulate and analyze information and reflect it in business strategies.

Innovation ofPerceptual Assist

To provide safety, security, and excitement to society by continuously evolving functions thatpick up information that people cannot directly perceive and transmit it in a timely andappropriate manner through their five senses.

Evolution of coretechnologies

Continue to create innovation through evolution, provide technologies that meet market
demands, and co-create solutions to the problems faced by the customers by evolving andcombining the three technologies owned by the Group and the individual technologies thatmake up the three technologies.

Innovation ofLifestyle

To provide new products and services that replace taken-for-granted habits and behaviors,
thereby creating more time in people's lives and enriching their lives.

Sustain and Improve Quality

Awareness Change
1. Focus on cost improvement

4. Have the spirit to lead the organization

2. Critical of the current situation, challenge reform

5. Change your perspective and ideas, and take on challenges

3. Speed up judgment and execution

6. Systematize and improve organizational strength

Nippon Seiki Integrated Report02Safe, Secure and Inspiring
Everyone

03

Nippon Seiki Integrated Report

CONTENTS

SECTIONSECTIONSECTIONSECTIONSECTION

01

Overview of Nippon Seiki Group02

Nippon Seiki Group's Value Creation Process

03

ESG Initiatives

04

Financial Statements

05

Company data

05 Nippon Seiki Group History
07 Overview of the Nippon Seiki Group
09 Financial and Non-Financial Highlights

11 Message from the President
15 Nippon Seiki Group Sustainability Policy
17 Value Creation Process
19 Materiality
21 Business of Nippon Seiki Group

31333745
49

535758ESG Initiatives
Environment
Social Activities
Corporate governanceDialogue with Outside Directors

Financial Statements

Board of Directors
Integrated Report Review

Forward-Looking StatementsThe data and future forecasts in this report are based on information available as of the date of publication of this report, and may be affected by various factors. Actual results may
differ materially from forecasts. Therefore, we ask that you refrain from relying entirely on these forward-looking statements. In addition, we are based on the new situation, the incidentsof the Shoho (General News) and so on.
We are not responsible for updating these future predictions.

Nippon Seiki Integrated Report04

Nippon Seiki Group History
1940’s〜50’s

1960’s1945

Society1980ʼs1970’s1973●Remarkable Economic Growth in Japan●Oil Crisis

1981

Nippon Seiki●Takami Plant completed

1945

1972

●Nippon Seiki Foundation

1986●In California, U.S.A Established
N.S. International, Inc.

1946

●Listed on the Second
Section of the Tokyo
Stock Exchange●In Ohio, USA
Established New Sabina
Industries Inc.

●Nippon Seiki Co., Ltd. Establishment

1955●Head office and factory relocated to Nishi-Shinmachi(present: Jooka), Nagaoka City, Niigata Prefecture

1987●In Worstershire,United Kingdom
Established UK-NSI.

［1948］Daihatsu Auto Tricycle［1965］Honda CB450［1958］Honda SUPER CUB C100

［1976］Honda ACCORD［1982］Mazda CAPELLA

Circumstance and Corporate Value Change(million yen)

18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0-2,000-4,000-6,00005

Nippon Seiki Integrated Report

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

01

2000ʼs2010ʼs1997

2008●Collapse of a Bubble Economy in Japan

1990●Lehman Shock2001●Established PT.Indonesia Nippon Seiki
in Banden, Indonesia●Established R&D Center inNagaoka City, Niigata Prefecture2020ʼs2011●Asian Currency Shock1991

Overview of Nippon Seiki Group1990ʼs2020●COVID-19 Pandemic

2011●Established Wuhan Nissei Display System Co., Ltd.
in Wuhan, China

2006●Established Shanghai Nissei
Display System Co., Ltd.
in Shanghai, China●Established Thai Nippon Seiki Co., Ltd.
in the province of Chonburi, Thailand

02

2019

●Established NS Technical Centerin Nagaoka City, Niigata Prefecture

Nippon Seiki Group's Value Creation Process

1995●The Great Earthquake
in East Japan●Established Nippon Seiki
Poland Sp. z o.o. in Lodz, Poland

2007●Established Vietnam Nippon Seiki Co., Ltd.
in Hanoi Vietnam

2002●Established Nippon Seiki Do Brasil Ltda.
in Amazonas, Brasil●Established Nippon Seiki（Europe）B.V.
in Amsterdam, the Netherlands

2022

2012

●Tokyo Technical Center opened●Established NS Instruments
India Private Ltd. in Southern India●Established NS India
Design & Trading Private Ltd.
in Haryana, India●Kyoei Engineering in Agano City,
Niigata Prefecture became wholly
owned subsidiary of Nippon Seiki

2008

03

［1988］McLaren Honda F-1 MP4/4［1999］Chevrolet CORVETTE［2007］BMW X5

ESG Initiatives●Established Nippon Seiki De Mexico S.A. De C.V.
in Nuevo León, Mexico［2018］Mercedes-Benz GLE［2015］Audi Q704
Financial Statements

Profit attributable to owners of the parent company（Left Side）

Market capitalization（Right Side）(million yen)

180,000
160,000
140,000
120,000
100,000
80,00005

60,000Company data

40,00020,0000-20,000-40,000

2007200820092010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023 (FYE)-60,000

Nippon Seiki Integrated Report

06

Nippon Seiki Group Overview [FYE March 2023]
Sales & Number of Employees by Region (Sales:truncation)

JapanEurope

Sales (Outside)

Sales (Outside)

22.7(8.2%)
Billion Yen

Consolidated Sales

275.7

Number of Employees (Inside)658(4.8%)

2.8

4,440

13,624(26.7%)
Billion Yen(32.6%)

Billion Yen

Number of Employees

Sales (Outside)(37.3%)
Billion Yen

Number of Employees (Inside)

Operating Profit

Americas73.7

Billion Yen

102.9

Asia
Sales (Outside)

76.3(27.7%)
Billion Yen

Number of Employees (Inside)

Number of Employees (Inside)(16.6%)(46.0%)

2,256

6,270

Nippon Seiki Group Network

EuropeU.K.
Netherlands

Japan

PolandJapan

U.S.A.

China
TaiwanIndia

VietnamAmericas
MexicoThailandAsia

Indonesia

Brasil07

Nippon Seiki Integrated Report

01
Overview of Nippon Seiki Group

Sales by Business Segment (Sales:truncation)
OtherCar Sales

23.4

7.0

(8.5%)
Billion Yen(2.5%)
Billion Yen

Display Business(0.2%)
Billion Yen

0.602
Nippon Seiki Group's Value Creation Process

Resin CompoundBusiness

8.7(3.2%)
Billion Yen
Automotive Component
Business

Consumer Component
Business

19.4

216.4

（78.5%)
Billion Yen(7.0%)
Billion Yen

03
ESG Initiatives

Summary of Financial Results
Fiscal year ended March 2023
Financial Results

decrease in information systems services,
etc., but operating income was 588 million
yen (up 13.1% from the previous year).

Overview of theFinancial Situation
Assets at the end of the current consolidatedfiscal year amounted to 355,954 million yen,
an increase of 26,401 million yen comparedto the end of the previous consolidated fiscal
year, due to an increase in inventories,
despite a decrease in other financial assets.
Liabilities increased by 14,825 million yen
compared to the end of the previous fiscal
year to 149,505 million yen, due to anincrease in bonds and loans payable, trade
payables, and other payables due to securing safety stock.
Capital increased by 11,575 million yen
compared to the end of the previous fiscal
year to 206,449 million yen due to increases
in other capital components.
Inventories have increased due to therecent shortage of electronic components,
customers securing safety stocks to maintaintheir production lines, and requests fromcomponent suppliers for long-term contracts.
Currently, the shortage of electronic parts is
beginning to ease, and we are working to
reduce inventory by reviewing our management methods and aim for optimal inventory
levels.

05
Company data

Nippon Seiki Integrated Report

04
Financial Statements

The economic environment surrounding ourgroup during the fiscal year ended March 31,
2023 saw progress in the relaxation ofvarious restrictions caused by the novel
coronavirus in countries around the world.
Although there have been signs of economic
recovery, the outlook remains uncertain due
to factors such as global inflation and highresource prices, geopolitical risks such as
Russia's invasion of Ukraine and conflict
between the United States and China, monetary tightening policies in each country, andexchange rate fluctuations.
In our mainstay automotive parts
business, sales have recovered to 2019
levels due to the reduction in the impact of
the new coronavirus. Production plans werechanged due to a shortage of parts such as
semiconductors, and material and logistics
costs soared. However, we have endeavored
to secure profits by appropriately reflecting
increased costs in selling prices and by
reducing logistics costs by reducing airtransport of products and parts.
Revenue for the current fiscal year was
275,776 million yen (up 23.3% year on year),
operating income was 2,840 million yen(operating loss of 4,276 million yen in theprevious fiscal year), and net income was
1,380 million yen. million yen (compared to aloss attributable to owners of the parent

company of 5,180 million yen in the previousfiscal year).
In the automotive parts business, sales
revenue of 216,483 million yen (up 26.7%
from the previous fiscal year) and operating
income of 1,179 million yen (compared to an
operating loss of 5,857 million yen in theprevious fiscal year) due to an increase inautomobile instruments, motorcycle instruments, etc. was. In the consumer parts
business, sales of air conditioning andhousing equipment controllers increased,resulting in revenue of 19,419 million yen (up56.0% from the previous fiscal year) andoperating income of 1,349 million yen (up876.7% from the previous fiscal year). In theresin compound business, sales of resinmaterials increased, resulting in revenue of
8,727 million yen (up 1.2% from the previousyear), but operating income was 158 millionyen (down 62.3% from the previous year). In
the display business, sales of LCD products
decreased, resulting in revenue of 678
million yen (down 58.0% from the previousfiscal year) and operating loss of 1,296
million yen (compared to an operating loss of95 million yen in the previous fiscal year).
In the automobile sales business, sales of
new cars increased, resulting in revenue of
23,402 million yen (up 4.3% year on year)
and operating income of 1,090 million yen(up 13.9% year on year). In other areas,
sales revenue was 7.064 million yen (down8.1% from the previous year) due to a08

Financial and Non-Financial Highlights for the Year Ended March 31, 2023
Financial
Revenue from sales(100 million yen) [Consolidated](100 million yen)
3,000
2,632

2,500

2,757

(100 million yen) (%) [Consolidated](%)(100 million yen)(%)

1506120

125.4

1004

3.1

1,500

1.8

50

276

2805002021

2022 (year)-5002019

2020

2021

-22022 (year)

-60

-51

2018

4,000

3,000

3,076

2,969

3,151

R&D Expenses

1,014

1,091

2,113

1,955

2,060

56.9

56.5

56.1

50

40
1,109

1,076
963

(100 million yen) [Consolidated](100 million yen)

56.8

3,559

3,295

-6

2022 (year)

Return on Equity(%) [Consolidated]
58.5

2021

Parent Company

Capital Adequacy Ratio

602020Net Income Attributable to Owners of the(%)(100 million yen)2019

0-3-2.8

Operating Profit Ratio(100 million yen) [Consolidated]

0.7

0.3-0.2

Operating Profit

Current assets / Non-current assets

313

5-3-30

-1.9

2018

30

0-42

2020

61.0
39

1,000

9
6.6

60

142

2019

115

90

2,236

2,000

2018

(100 million yen) / (%) [Consolidated](100 million yen)

2,463
2,169

0Net Income Attributable to Owners of the
Parent Company / Return on Equity

Operating Profit / Operating Profit Ratio

37393540

29

30

31

2,000

1,00002,4492,218

2020102018

2019

2020

2021

2022 (year)

0

2018

2019

2020

2021

2022 (year)

02018

2019

2020

2021

2022 (year)

Current assets
Non-current assets

Capital Investment / Depreciation

Net Income per Share(100 million yen) [Consolidated](100 million yen)

100

132

123

93

98

97

200

103
82

83

25

22

8-6

2020

Capital Investment
Depreciation

Nippon Seiki Integrated Report

40

40

2019

2020

2021

40

2021

2022 (year)

-100

2018

2019

20

10-50

2019

40

30

10002018

45

40

50

50

09

202

150

94

75

050

250

139(yen) [Consolidated]
(yen)

(yen)

150
125

Dividends per Share(yen) [Consolidated]

2020

-85

2021

2022 (year)

0

2018

2022 (year)日Overview
本精機グofルNippon
ープのSeiki
概要 Group01

Environment
Water Emissions

CO2 Emissions

Waste Emissions(1,000 m³) [Consolidated](tons) [Consolidated](tons) [Consolidated](1,000 m³)(tons)(tons)

750

10,000100,000

577

568

544

500

82,989

574

7,627

7,500
6,461

477

6,984
5,892

79,95075,0006,660

50,0002,500

25,00077,23402
Nippon Seiki Group's Value Creation Process

5,000

79,352
70,347

250

0

2018

2019

2020

2021

20220(year)

2018

2019

2020

2021

02022(year)

2018

2019

2020

2021

2022(year)※Consolidated manufacturing bases will be covered until 2021, andmanufacturing, development design, sales, and vehicle sales bases will
be covered from 2022 onwards.

SocialFemale Managers

Employees Taking Childcare Leave / Retention

Employees with Disabilities(Number)
100
8.9899090(%)(Number)

1060

9.3

8.4

75

50

8.9

8.9

(Number)(%)

50
7.5

99

103

5

2.4

2.4

230

1.5
45

50

48

49

135

2.5

2018

2019

2020

2021

02022 (year)

25

2.5

100(cases)

340

20
25

2.3(%)

00.52018

Number of Female managers

2019

2020

2021

02022 (year)

100100100

201010064.1

1515

5100

61.3

36.6

928.6
55552018

2019

2020

2021

4100

80

1960

40

20

9.3

Number of Employees with Disabilities

02022 (year)

04

Male’s Childcare Leave% of Employees with Disabilities

Female’s Childcare Leave

Financial Statements% of Female managers

(%)

25
100

2.6

2.503

(cases)(%)

ESG Initiatives(Number)(%) [Consolidated]

Male’s Childcare Leave
Female’s Retention

Governance
Average Length of Employment(year)(cases)(cases)252020
20.3
17.9

19.3
17.2

19.8
17.3

20.1
18.2

18.2

8

54Male2020

2021
Female2022 (year)

012

13200

63

67

2019

2020

2021

2022 (year)

170

166

56

57

0136
42100
142

2018

05

205

2018

114

109

2019

2020

Japan

94

2021

Company data

102019300

1816122018(cases)(cases)20.7

150

Number of Patents Obtained

Number of Occupational Accidents(year)

155
44111

2022 (year)

International

Nippon Seiki Integrated Report10