Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended June 30, 2024
(Based on Japanese GAAP)

August 8, 2024

Company name:
Nittoseiko Co.,Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

5957
President

URL

https://www.nittoseiko.co.jp/
Makoto Araga

Inquiries:
Director,Accounting & Finance Division
Scheduled date to file Quarterly Securities Report:

Shinichi Matsumoto
August 9, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

September 9, 2024
Yes

Holding of quarterly financial results meeting:

Yes

TEL

(0773)42-3111(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)

Six months ended June 30, 2024
Six months ended June 30, 2023

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
22,394 △0.2
1,494
15.1
1,610
9.0
1,007
20.8
22,447
7.5
1,298
25.9
1,476
16.2
833 △16.3
Earnings per share

Diluted earnings per share

Yen
27.56
22.57

Six months ended June 30, 2024
Six months ended June 30, 2023

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2024
As of December 31, 2023

Net assets

Millions of yen
54,702
53,344Equity ratio

Millions of yen
37,871
36,402%61.3
60.7

2. Cash dividends
Annual dividends per share

Year ended December 31, 2023
Year ending December 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
9.00
9.50

Yen–

Yen
9.00

Yen
18.00

–

9.50

19.00

Year ending December 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
48,200
7.7
3,300
26.2
3,500
23.4
2,100
21.1
57.46

1

4. Notes(1) Changes in significant subsidiaries during the six months ended June 30, 2024
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

39,985,017 shares As of December 31, 2023

39,985,017 shares

Number of treasury shares at the end of the period
As of June 30, 2024

3,438,335 shares As of December 31, 2023

3,438,383 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2024

36,546,329 shares Six months ended June 30, 2023

236,950,225 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2023

As of June 30, 2024

AssetsCurrent assets
Cash and deposits

8,849,940

9,615,992

Notes and accounts receivable - trade
Electronically recorded monetary claims - operating

8,722,766
4,071,362

8,276,894
4,637,250

Securities
Merchandise and finished goods－
4,729,069

150,4365,000,735

Work in process
Raw materials and supplies

3,184,409
3,110,265

3,421,290
3,013,468

Accounts receivable - otherOther

622,622535,239

569,021610,623

Allowance for doubtful accounts(2,725)(2,758)33,822,950

35,292,954

4,075,488

4,092,236

3,105,785
5,671,521

3,190,959
5,732,279

756,533
520,656

683,318
526,548

14,129,985

14,225,342

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Software361,332

345,667

Goodwill
Customer related assets

392,569
36,875361,164
33,925

Technology related assets
Other

183,750
25,227

169,050
30,427

Total intangible assets

999,754940,234

Investments and other assets
Investment securities

1,161,896

1,094,376

Deferred tax assets
Retirement benefit asset

663,219
1,968,354

567,624
1,968,354

599,077(1,000)614,697(1,000)Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

4,391,547

4,244,052

19,521,287

19,409,630

53,344,237

54,702,584

(Thousands of yen)
As of December 31, 2023

As of June 30, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

4,333,229
4,282,701

4,359,043
4,115,330

Short-term borrowings
Accounts payable - other

1,574,380
323,6141,530,730
383,869

Income taxes payable
Provision for bonuses

558,472
263,123531,966
318,140

Other

1,565,761

1,843,005

Total current liabilities

12,901,282

13,082,085

Long-term borrowings
Provision for directors' retirement benefits

358,469
159,236

311,161
138,720

Provision for share-based remuneration for directors (andother officers)

93,303

108,770

584,378
1,869,882

584,075
1,769,495

974,885

836,934

Non-current liabilities

Deferred tax liabilities
Retirement benefit liability
OtherTotal non-current liabilities

4,040,155

3,749,157

16,941,438

16,831,242

Share capital
Capital surplus

3,522,580
2,767,848

3,522,580
2,767,848

Retained earnings
Treasury shares

26,632,568(1,562,112)

27,304,421(1,562,056)

Total shareholders' equity

31,360,884

32,032,793

114,013

159,604

456,875
472,214909,826
456,219

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,043,103

1,525,651

Non-controlling interests

Total accumulated other comprehensive income

3,998,810

4,312,896

Total net assets

36,402,799

37,871,341

53,344,237

54,702,584

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended
June 30, 2023

Six months ended
June 30, 2024

Net sales

22,447,807

22,394,844

Cost of sales

17,330,357

17,036,224

Gross profit

5,117,449

5,358,619

Selling, general and administrative expenses

3,818,652

3,864,146

Operating profit

1,298,796

1,494,473

Non-operating income
Interest income

14,773

17,970

Dividend income
Rental income

7,863
45,954

5,488
43,715

Foreign exchange gains
Share of profit of entities accounted for using equity method

100,878
32,83577,672
3,441

Other

90,297

67,101

Total non-operating income

292,602215,388

Interest expenses
Rental costs

9,939
34,8858,760
41,673

Other70,053

49,358

Total non-operating expenses

114,879

99,792

1,476,520

1,610,069

3,177

6,911

Gain on sales of investment securities
Gain on revision of retirement benefit plan91
36,357－－

Total extraordinary income

39,625

6,911

21,146

19,66921,146

19,669Profit before income taxes

1,494,999

1,597,311

Income taxes - current
Income taxes - deferred

425,229
94,640409,096
72,033

Total income taxes

519,870

481,130

Profit975,129

1,116,180

Profit attributable to non-controlling interests

141,295

109,055

Profit attributable to owners of parent

833,833

1,007,125

Non-operating expensesOrdinary profit
Extraordinary income
Gain on sales of non-current assets

Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended
June 30, 2023
ProfitSix months ended
June 30, 2024

975,129

1,116,180

Other comprehensive income
Valuation difference on available-for-sale securities

75,23352,824Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

605,298(11,948)

700,561(15,995)

934(690)669,518

736,700

1,644,648

1,852,880

1,354,658

1,489,672

289,989363,208

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Thousands of yen)Six months ended
June 30, 2023

Six months ended
June 30, 2024

Cash flows from operating activities
Profit before income taxes
Depreciation1,494,999
757,416

1,597,311
684,886

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability

60,028(55,503)49,514(124,469)

Decrease (increase) in retirement benefit asset
Interest and dividend income(52,025)(22,636)－(23,458)

9,939

8,760

(32,835)(3,441)(91)
21,146(3,177)－
19,669(6,911)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

1,360,668(692,977)

71,397(252,098)

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes(118,663)(6,555)(254,610)
37,034

Increase (decrease) in accrued expenses
Other, net

335,973
60,602

367,399(111,251)

Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sales of investment securities
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets

Subtotal

3,116,308

2,059,732

Interest and dividends received
Interest paid

23,443(12,091)

24,227(8,610)

Income taxes paid

(755,840)(447,236)

Net cash provided by (used in) operating activities

2,371,820

1,628,113

Payments into time deposits
Proceeds from withdrawal of time deposits(244,164)
294,908(214,585)
58,868Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(522,972)
3,177(590,933)
14,835

Payments for retirement of property, plant and equipment
Purchase of investment securities(21,146)(2,811)(19,669)(103,085)

198－
100,000

Cash flows from investing activities

Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Other, net－(46,523)

Net cash provided by (used in) investing activities(539,333)

7(52,631)(807,202)

(Thousands of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Six months ended

Six months ended

June 30, 2023

June 30, 2024

(515,000)

Repayments of long-term borrowings
Proceeds from sales of treasury shares(150,084)
286,230－(90,958)
1,200

Purchase of treasury shares
Dividends paid

(286,286)(297,462)(19)(335,272)

Dividends paid to non-controlling interests
Other, net(130,829)(12,036)(49,122)(8,801)

Net cash provided by (used in) financing activities(1,105,469)(482,974)

Effect of exchange rate change on cash and cash equivalents(170,487)

219,242

Net increase (decrease) in cash and cash equivalents

556,529557,179

Cash and cash equivalents at beginning of period

8,305,927

8,027,144

Cash and cash equivalents at end of period

8,862,456

8,584,323

8

(Segment Information)
1．Six Months Ended June 30, 2023 (From January 1, 2023 to June 30, 2023)Information concerning net sales and profit or loss by reporting segment(Thousands of yen)

Reportable segments

Consolidated

Fastener

Assembly
MachineControl
SystemNet sales
Sales to externalcustomers
Intersegment sales
and transfers

16,260,737

3,453,338

2,720,683

13,04822,447,807

22,447,807

－

－－－－－

Total

16,260,737

3,453,338

2,720,683

13,04822,447,807

22,447,807

Segment profit (loss)

800,289481,263

69,908△52,664

1,298,796

1,298,796

MedicalTotal

Notes: Segment profit is adjusted for operating income reported in the consolidated statements of income.

2．Six Months Ended June 30, 2024 (From January 1, 2024 to June 30, 2024)
Information concerning net sales and profit or loss by reporting segment(Thousands of yen)
Reportable segments

Consolidated

Fastener

Assembly
MachineControl
SystemNet sales
Sales to externalcustomers
Intersegment sales
and transfers

16,038,348

3,138,500

3,212,179

5,815

22,394,844

22,394,844－－－－－－

Total

16,038,348

3,138,500

3,212,179

5,815

22,394,844

22,394,844

Segment profit (loss)

690,516

539,170

328,318△63,532

1,494,473

1,494,473

Medical

Total

Notes: Segment profit is adjusted for operating income reported in the consolidated statements of income.

9