Quarterly Report 2Q for the fiscal year
ending December 2024
Aug 8th, 2024
NITTOSEIKO CO., LTD.
(Issue code: Tokyo Stock Exchange Prime 5957)

1

Summary of Financial Results
2023/122Q

Unit: Million yen / %Amount2024/12
2Q

Ratio
(%)

Amount

YoY
Ratio
(%)

Amountchange% Change

Net sales

22,447100.0

22,394

100.0

520.2

Gross profit

5,117

22.8

5,358

23.9

241

4.7

Selling, general and administrative expenses

3,818

17.0

3,864

17.3

451.2

Operating income

1,298

5.8

1,494

6.7

195

15.1

Ordinary income

1,4766.6

1,610

7.2

133

9.0

Net income for current period before incometaxes

1,494

6.7

1,597

7.1

102

6.8

833

3.7

1,007

4.5

173

20.8

22.57

-

27.56

-

--

Net income attributed to shareholders of theparent company

Net income per share (yen)Main points
Net SalesStrong sales of analytical and measuring instruments for energy-related applications in the control system segment, as
well as the establishment of a European base in April 2023, combined with the effect of price pass-through, are beingreflected in the results. However, overall net sales was down 0.2% YoY, with lower sales of products for game consoles
in the fastener segment due to a slowdown in stay-at-home demand, and lower demand for screw fastening machines
for automotive applications in the U.S. and Thailand in the assembly machine segment.

OperatingIncomeProfit increased 15.1% YoY due to progress in price pass-through, especially for automatic screw fastening machines,
and shipments of high value-added analytical instruments.

OverseasOverseas net sales increased due to firm sales of fastener products for the automobile industry in China, as well as
strong sales of analytical instruments at the European base.
2Summary of Financial Results - Net Sales▌Analysis of Net Sales▌Change in net sales by segment

MillionYenMillion
YenBusiness
Expansion

Nittoseiko Analytech Europe GmbH,established in 2023, contributed to thebusiness.

Change inSales

Although analytical and measuring
instruments performed well, sales declined
due to a drop in capital investment in theU.S. and Thailand and a decrease in products
for game consoles due to a slowdown instay-at-home demand.

Price PassthroughPrice pass-through of screw fastening
machine-related products has progressed.
Negotiations continue for other items.
3Summary of Financial Results - Operating Income
MillionYen▌ Analysis of Operating Income▌Change in Operating Income by segment
MillionYenFactors
Affecting Cost
Ratio Variance

The cost ratio improved due to the pricepass-through related to screw fastening
machines. In addition, progress inshipments of high value-added analytical
instruments also contributed.

SG&A Variables

Labor costs increased by about 3.3%
(approx. 57 M yen) from the previousyear due to wage increases.

BusinessExpansion

Contribution from the establishment ofNitto Seiko Analytech Europe GmbH.
4

Overview of Results by Segment - Fastener Segment
Net sales

MillionYen

8,280 8,285 8,309

2Q

3Q

4Q

2023

Unit: Mil yen/ %

7,716

1Q

Million
Yen
8,321

2Q

Operating income
485

389

340

2Q

3Q

328

4Q

1Q

2023

2024

2023/122024/122Q

2Q

AmountAmount362

2Q◆Automobile

YoY% Change

16,26016,038222

1.4

Automobile

6,146

6,356

209

3.4

Housing andconstruction

3,690

3,525

165

4.5

Electrical andelectronic parts

2,386

2,324

62

2.6

Household goods

1,243882

360

29.0

IT and digitalequipment

626

776

149

23.8

Precisionequipment

535

583

48

9.0

Medical

142

153

117.7

Others

1,488

1,436

52

3.5

Operating Income

800

690

109

13.7

Net Sales• Net sales decreased YoY due to sluggish demand in the game consolemarket and slow growth in new starts in the construction industry due tolabor shortages and soaring material prices, despite strong sales in themainstay automobile business.
• Operating income declined YoY as material and energy costs were notfully reflected in selling prices despite efforts to pass them on.
• Promoting efficiency and cost reduction through consolidation ofmanufacturing plants.

Industry Comments

2024

AmountOutlook• Despite the aftermath of inventory adjustments from the COVID-19
pandemic by customers mainly in SE Asia, sales are strong for our originalanti-loosening screws “GIZATITE,” screws with built-in washers “ASFA,”
screws that prevent scattering of fastening dust “CP GRIP,” and “precisionpress products” for CASE and EV applications.

◆Housing and construction• Despite domestic demand, construction starts were sluggish and down
YoY due to the industry's shortage of labor and soaring material prices. A
new product, “CUP BOLT,” that replaces bolts with built-in spring washers
and flat washers, was launched in February and is currently expandingsales.

◆Electrical and electronic parts• Sales remained weak due to sluggish consumption in Europe and China,
and weak sales of Japanese home appliance manufacturers in SE Asia.
◆Household goods• Sales for precision screws declined amid a slowdown in the game consolemarket, which had been boosted by stay-at-home demand.
◆IT and digital equipment• Sales for OA equipment increased in China and Malaysia.

5Overview of Results by Segment – Assembly Machine Segment
Net sales

Million
Yen

1,860

1,817
1,173

MillionYen

Operating income
385

1,329 1,320
240

224

154

100

2Q

3Q

4Q

2023

Unit: Mil yen/ %

1Q

2Q

2Q

3Q

2024

4Q

1Q

2023

2023/122024/122Q

2Q

AmountAmount2Q◆Automobile

YoY% Change

3,453

3,138

314

9.1

1,825

1,477

348

19.1

Electrical andelectronic parts

711

499

211

29.7

Energy sector

99

135

3636.3

AmusementmachineIT and digitalequipment
Housing andconstruction

206

110

95

46.0

139

83

55

39.5

103

83

2019.2

Household goods

1061

50

488.9

Others

356

686

329

92.2

Operating Income

481

539

57

12.0

Net Sales
Automobile• Net sales decreased YoY due to economic slowdown in the U.S. andThailand and stagnant capital investment appetites due to politicalfactors, despite growing momentum for automation against abackdrop of demand for electrification and labor shortages.
• Operating income increased YoY due to an improvement in the cost
ratio as a result of progress in price pass-through in screw fasteningmachines.

Industry Comments

2024

AmountOutlook• Orders for CASE-related screw fastening machines and equipment used in
new vehicle models are on the rise, but capital investment appetites
remain sluggish in the U.S. and Thailand, resulting in weak sales.
◆Electrical and electronic parts• Sales were down YoY due to a rebound from last year's large orders for
substrate surface treatment equipment and standard screw fastening
machines for home appliances.
◆Energy sector• Sales increased due to demand for renewal of equipment for smart
meters and electricity meters.
◆Amusement machine• Decreased in response to last year's large equipment orders.
◆IT and digital equipment• Decreased in response to last year's orders for cell phones in Korea.
◆Others• Sales increased due to orders for large projects related to equipment for
general-purpose engines, industrial pumps, and furniture assembly.

6

Overview of Results by Segment – Control System Segment
Net sales

MillionYen

1,392 1,309

MillionYen

1,885 1,680

Operating income
215

1,531205
122

392Q

3Q

4Q

2023

Unit: Mil yen/ %1Q

2Q△63Q2Q

2024

4Q

1Q

2023

2023/122024/122Q

2Q

AmountAmount2Q

2024

Industry Comments•% Change

2,720

3,212

491

18.1

Energy sector

439

682

243

55.4

Chemical andpharmaceuticals

632

637

50.8

Environment

106

348

242

228.7

Automobile

143

228

84

59.0

Electrical andelectronic parts

170

188

1710.6

Ship building

164

178

148.9

Housing andconstruction

256

162

93

36.5

Medical

67

60

69.9

Food

31

60

28

89.0

Others

708

663

45

6.4

Operating Income

69

328

258

369.6

Net Sales• Analytical instruments performed well, mainly for energy-related
applications. Sales at the new base in Europe was also strong, resulting in
YoY increases in both sales and profit.
• In addition to new product development, the Company will focus on costvisualization, in-house production of machined parts, efficient assembly
production, and sales price revisions.

◆Energy sector

YoY
AmountOutlook

Sales increased due to large orders for sulfur analyzers in 1Q. Demandfor oil refinery equipment was also strong.

◆Chemical and pharmaceuticals•

Sales of analyzers at the new European base remained strong. Afterreviewing the commercial distribution system, the Company startedsales through its subsidiary in China and is currently expanding its saleschannels.

◆Environment•

Sales of the new “Automatic Quick Furnace AOF/AQF-5000H,” launchedin March, increased significantly in response to demand for analysis oforganic fluorine due to the European PFAS regulation. Inquiries about
microbubbles are increasing due to interest in environmentally friendlyproducts.

◆Automobile•

Demand increased significantly, including large orders for "MISTOL"
parts inspection systems. Additionally, demand for resistivity meters forbattery materials etc. increased.

◆Housing and construction•Sales of the ground investigation equipment “GEOKARTE IV” remainedsluggish due to a lack of growth in the number of detached housingstarts.
7

Overview of Results by Segment – Medical Segment
Net sales

MillionYenMillion
YenOutlook

Operating income• The medical illuminator “FREELED” did not achieve fulladoption despite efforts to collect market needs andmake proposals while reducing costs, a high customer
demand after the COVID-19 pandemic. Going forward,
the Company will focus on strengthening PR throughsales companies, aiming for full adoption of the product.

522102Q

3Q

4Q

2023

Unit: Mil yen/ %1Q

2Q△ 30△ 30△ 292Q

3Q

4Q

2024

△ 32△ 311Q

2Q

2023

2023/122024/122Q

2Q

AmountAmount• Sales of oxygen concentrators for medical equipment
slumped with the end of the COVID-19 pandemic. TheCompany plans to expand and meet market needs
outside of the existing medical industry, such as forhealthcare applications.

2024

YoY
Amount% Change

135755.4

Medical135755.4

Others－－－－Operating Income

526310－Net Sales• Following the patent in Japan in 2023, a U.S. patent for"High purity bio-soluble magnesium for medical use "was granted in July 2024. Patents already filed in six
other major countries are scheduled to be granted
sequentially. The Company is trying to bring the productto market by preparing integrated manufacturing
facilities, producing samples for non-clinical studies,
conducting performance tests, as well as preparing toobtain a license for sales of medical products andestablishing a quality control system. The Company will
also gather information on the applicability of thismaterial.
• New projects utilizing the Company’s existing
technologies have been initiated and are ongoing. Plan
to expand medical equipment.
8Balance Sheet (Consolidated)
Unit : Million yen/%

Year ended Dec 2023

Year ending Dec 2024/2Q

AmountAmountRatio (%)

Ratio (%)

YoY
Amount change% Change

Assets33,822
8,849

63.4
16.6

35,292
9,615

64.5
17.6

1,470
766

4.3
8.7

Electronically recorded monetaryclaims - operating

12,79424.0

12,914

23.6

120

0.9

inventory

11,023
19,521
14,129999
4,391
53,344

20.7
36.6
26.5
1.9
8.2
100.0

11,435
19,40914,225940
4,244
54,702

20.9
35.5
26.0
1.7
7.8
100.0

411
111
95
59
147
1,358

3.7
0.6
0.7
6.0
3.4
2.5

12,901

24.2

13,082

23.9

180

1.4

8,615

16.2

8,474

15.5

141

1.6

1,574
4,040
16,941

3.0
7.6
31.8

1,530
3,749
16,831

2.8
6.9
30.8

43290
110

2.8
7.2
0.7

3,522
29,4001,562
36,402

6.6
55.1
2.9
68.2

3,522
30,072
1,562
37,871

6.4
55.0
2.8
69.2

－
671
0
1,468

－
2.3
－
4.0

Total current assets
Cash and deposits
Notes and accounts receivable – trade

Total non-current assets
Non-current assets
Intangible assets
Investments and other assets
Total assets
Liabilities
Total current liabilities
Notes and accounts payable - trade
Electronically recorded obligations – operating
Short-term borrowings
Total non-current liabilities
Total liabilities
Net assets
Share capital
Capital surplus／Retained earnings
Treasury shares
Total net assets

9Cash Flow Statement (Consolidated)
FY2023/2Q

Unit: Million yen / %FY2024/2Q

AmountAmountAmount change% Change

CF from operating activities ※①

2,371

1,628743

31.4

CF from investing activities ※②539

807

267-

1,832

820

1,011

55.2

1,105482

622-

556

557

0

0.1

8,305

8,027

278

3.4

8,862

8,584

278

3.1

（Free CF）※①＋②

CF from financing activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning ofperiod
Cash and cash equivalents at end of period
2,371
1,832

1,628

CF from operating
820

△ 539
2023/2Q

activities
CF from investing
activities
FCF

△ 807
2024/2Q10

2. Forecast for the Fiscal
Year Ending Dec 31, 2024

The future projections in this document, including earnings forecasts, are based on information currently available to thecompany and certain assumptions that the company considers reasonable and actual results may differ from these
forecasts due to a variety of factors.

Forecast for FY2024 (Consolidated)
2023/12 Full Year

2024/12 Full Year(Forecast)AmountRatio (%)

AmountRatio (%)

Net sales

44,744100.0

48,200

100.0

3,455

7.7

Operating profit

2,614

5.8

3,300

6.8

685

26.2

Ordinary profit

2,835

6.3

3,500

7.366423.4

Net income attributed to shareholders of theparent company

1,734

3.9

2,100

4.4

365

21.1

4Q

Net income per share (yen)

46.95

-

57.46

---

2023

Unit : Million yen/%

YoY
Amount% Change
ChangeChanges in the balance oforder backlog

1Q

2Q
2024

Main points
Net SalesIn the first half of this fiscal year, inventory adjustments, slowing economic growth in major countries, and geopolitical risks caused
order growth to be sluggish, but the excess inventory has been slightly resolved and the price pass-through, which had been difficult
up to now, is gradually progressing. The appetite for capital investment is also recovering, particularly in the automobile industry, anda group-wide recovery is expected to begin in the second half of this fiscal year. In particular, demand is expected from theautomobile, household goods, and energy-related industries.

Operating
Income

The Company expects to see the effects of the price pass-through for screw fastening machine-related products. In addition, theCompany is continuing to improve profitability by consolidating its fastener plants, continuing negotiations on products for which
price pass-through has not yet been completed, reviewing parts and materials, and producing processed parts in-house.

（Million Yen）

Change in net sales by segment（Million Yen）

Change in Operating Income by segment

12Market trend and initiatives by segment
Major market trend

Initiatives for this fiscal year

Changes in thebalance of orderbacklog

Fastener
Assembly
MachineControl
SystemMedicalAutomobile

Increasing demand for lightweight and thinner sheet
metal for EVs has led to an increase in inquiries. On theother hand, orders did not grow as projected at thebeginning of the fiscal year due to quality problems ofmanufacturers.

Housing andconstruction

The industry is experiencing shortages of labor andmaterials, but there is demand for large-scale construction
projects in Japan.

Householdgoods

Expect a rise in the game console market, which wasshowing a stable trend.

Automobile

Orders for CASE-related screw fastening machines andequipment for new vehicle models are on track forrecovery.

Electrical andelectronic parts

Domestic production returns due to China risk and yen
depreciation. Orders for semiconductor inspection
equipment, an area of strength, are on track for recovery
due to the semiconductor industry's upturn.

Energy sector

Installation of new wattmeter equipment and smart meterequipment is expected to increase.

Energy sector

While demand is expected to decrease due todecarbonization, demand for renewable fuels such as SAF
and synthetic fuels is expected to increase.

Chemical andpharmaceutical

Expect demand for next generation battery materials
including LIBs.

Environment

Demand for analyzers in Europe and the U.S. is expected
due to PFAS regulations.

Development
planStarting with the U.S. patent in July, plan to obtain overseas patents for “High-purity bio-soluble magnesium for medical use" in due
course. In addition to preparing manufacturing facilities and conducting non-clinical studies for this product, the Company will also
prepare for clinical studies. Expand sales of medical device products and develop new products.

Promote sales of “AKROSE” and “JOISTUD” series
for automotive applications, and the new “CUPBOLT,” which does not require a washer, forhousing and construction applications. In responseto rising material costs, the Company is in theprocess of raising product prices. In addition,efforts will be made to reduce manufacturing costs
through restructuring of plants, etc.

Alongside the stable orders for standard machines,
the backlog of orders for special machines
increased. To secure production capacity for
wattmeter special machines, a field with a strong
track record outside of the automobile industry,
the Company is also developing new partner plants.
In addition to the development of new products,
The Company will also focus on cost reduction byreviewing parts and packaging materials andvisualizing procurement prices.
Expand sales of the new “Automatic Quick Furnace
AOF/AQF-5000H” for electronic materials andPFAS-related demand. Develop new products
related to inspection equipment to meet the needs
for labor saving and automation. In addition, theCompany will focus on cost visualization, in-houseproduction of machined parts, efficient assembly
production, and sales price revisions.

4Q
2023

4Q
2023

4Q
2023

1Q

2Q

2024

1Q

2Q

2024

1Q

2Q

2024

13