Quarterly Report 1Q for the fiscal year
ending December 2024
May 13th, 2024
NITTOSEIKO CO., LTD.
(Issue code: Tokyo Stock Exchange Prime 5957)

1

Summary of Financial Results
Unit: Million yen / %2023/12
1Q
Amount2024/12
1Q
Ratio
(%)

Amount

YoY
Ratio
(%)

Amountchange% Change

Net sales

10,912100.0

10,717

100.0

△ 194

△ 1.8

Gross profit

2,517

23.1

2,512

23.4

△5△ 0.2

Selling, general and administrative expenses

1,841

16.9

1,856

17.3

140.8

Operating income

675

6.2

655

6.1

△ 19

△ 3.0

Ordinary income

748

6.9711

6.6△ 36△ 4.9

Net income for current period before income
taxes

733

6.7716

6.7△ 16△ 2.2

Net income attributed to shareholders of theparent company

439

4.04724.432

7.4

11.90-

12.93---Net income per share (yen)Main points
Net Sales

Operating
IncomeOverseas⚫

Sales was strong for analytical and measuring instruments for energy-related applications in the control systembusiness and in Europe by Nittoseiko Analytech Europe GmbH, established in Germany in April 2023. However, netsales declined 1.8% YoY due to lower sales of products for game consoles in the fastener business resulting from aslowdown in stay-at-home demand, and lower demand for screw fastening machines in the assembly machine businessdue to depressed capital investment appetites in the US, China and Thailand.

⚫

Operating income decreased 3.0% YoY mainly due to the sluggish orders from the slowdown in the U.S. and Chinese
economies, despite sales price revisions and cost reductions in both manufacturing and sales in response to soaring
resource and raw material prices.
Overseas sales increased slightly due to strong sales of analytical instruments in Europe, despite weak sales in SE Asia
due to the sluggish performance of Japanese home appliance manufacturers and depressed capital investment
appetites in the U.S., China, and Thailand.
2⚫

Summary of Financial Results - Net Sales▌Analysis of Net Sales

MillionYen▌Change in net sales by segment
MillionYen

Business
Expansion

Contribution from the establishment ofNittoSeiko Analytech Europe GmbH.

Change inSales

Although analytical and measuring
instruments performed well, sales declined
due to depressed capital investments inthe U.S., China, and Thailand, as well as thesluggish performance of home appliancemanufacturers in SE Asia.

Price Passthrough

The Company is gradually passing onmaterial and energy costs to sales prices,
but this has yet to be fully achieved.
3Summary of Financial Results - Operating Income
MillionYen▌ Analysis of Operating Income▌Change in Operating Income by segment
MillionYenFactors
Affecting Cost
Ratio Variance

Material and labor costs are being passed on tosales prices, but this has yet to be fully achieved.
Material costs have increased by approximately
6.5% (approx. 320 million yen) over the previous
year. However, increase in sales of high valueadded analytical instruments reduced cost ofsales ratio.

Cost and SG&A
Variables

Labor costs increased approximately 0.2%
(approx. 3 million yen) over the previous
year due to wage increases.

BusinessExpansion

Contribution from the establishment ofNittoSeiko Analytech Europe GmbH.
4

Overview of Results by Segment - Fastener Segment

7,980

MillionYen

Net sales

MillionYen

8,280 8,285 8,309

485

7,716

1Q

Operating income

2Q

3Q

2023

Unit: Mil yen/ %4Q

1Q

4103891Q2Q

2024

340

328

3Q

4Q

2023

2023/122024/12

1Q

1Q

AmountAmount2024

YoYAmount% Change

7,716

△ 263

△ 3.3

3,019

3,257

237

7.9

1,824

1,733

△ 91

△ 5.0

1,192

1,066

△ 125

△ 10.6

335

340

41.3

Household goods

590

317

△ 272

△ 46.2

Precisionequipment

261

270

93.7

Medical7164△7△ 10.3

Others

684

665

△ 18

△ 2.8

Automobile
Housing andconstruction
Electrical andelectronic parts
IT and digitalequipment• Net sales decreased YoY due to slower demand in the game
consoles market and sluggish consumption in Europe and China,
despite steady sales in the mainstay automobile business.
• Operating income decreased YoY due to insufficient transfers ofmaterial and energy costs to sales prices regardless of the efforts.
• Currently improving efficiency and reducing costs by consolidating
manufacturing plants.

1Q

7,980

Net sales

Outlook

Industry Comments◆Automobile•
Despite the aftermath of inventory adjustments from the COVID-19
pandemic by customers mainly in SE Asia, sales are steady for our
original anti-loosening screws “GIZATITE,” screws with built-inwashers “ASFA,” screws that prevent scattering of fastening dust
“CP GRIP,” and “precision press products” for CASE and EVapplications. Sales of “JOISTUD,” a new product that contributes toweight reduction and thinner sheets, are also expanding.
◆Housing and construction•Despite domestic demand, sales declined YoY due to shortages oflabor and materials in the industry. A new product, “CUP BOLT,”
that replaces bolts with built-in spring washers or flat washers, waslaunched in February and is currently expanding sales.
◆Electrical and electronic parts•Sales remained weak due to sluggish consumption in Europe andChina, and weak sales of Japanese home appliance manufacturers
in SE Asia.
◆Household goods•
Orders for precision screws declined amid a slowdown in the game
console market, which had been boosted by stay-at-home demand.

5

Overview of Results by Segment – Assembly Machine Segment
MillionYenMillion
YenNet sales
1,860

Operating income

256

1,593

1,173

• Net sales decreased YoY due to economic slowdown in the U.S., China,and Thailand and stagnant capital investment appetites due to politicalfactors, despite a growing momentum for automation against a backdropof demand for electrification and labor shortages.
• Operating income decreased YoY due to lower orders for special
machines and lower orders in the U.S., despite efforts to reduce costs byreviewing parts and packaging materials and visualizing procurement
prices.

240

224

1,329 1,320

Outlook

154
100

1Q

2Q

3Q

2023

Unit: Mil yen/ %

4Q

1Q

1Q

2Q

2024

3Q

4Q

2023

2023/122024/12

1Q

1Q

AmountAmount1Q

Industry Comments

2024

YoYAmount% Change

1,593

1,320

△ 272△ 17.1703638△ 64△ 9.1507149△ 357△ 70.4275932118.27458△ 16△ 21.425431767.53833△5△ 12.9

Medical01414-Others

21532310850.0

Net sales
Automobile
Electrical andelectronic parts
IT and digitalequipment

Energy sector
Housing andconstruction
Amusementmachine◆Automobile•
Orders for CASE-related screw fastening machines and equipmentused in new vehicle models are on the rise, but capital investment
appetites remain sluggish in the U.S. and Thailand, resulting in weaksales.
◆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.
◆IT and digital equipment•
Sales increased due to large orders for screw fastening machines thatmount electronic parts to board connectors.
◆Energy sector•
Overall sales remained sluggish despite orders for equipment related
to gas stoves and gas meters.
◆Housing and construction•
Sales increased due to renewal demand for screw fastening
equipment for custom-built detached houses.
◆Others•
Sales increased due to large orders for equipment for generalpurpose engines and industrial pumps.

6Overview of Results by Segment – Control System Segment
MillionOperating income
Yen

Net sales

MillionYen

1,885 1,680

215

205

Outlook•

1,328 1,392 1,309

•1Q

2Q

3Q

2023

Unit: Mil yen/ %

4Q

1Q

30

39

1Q

2Q

2024

△63Q

4Q

2023/122024/12

1Q

1Q

AmountAmountIndustry Comments

1Q

2023

2024

YoY
Amount% Change

1,328

1,680

352

26.5

Energy sector

217

459

241

111.0

Chemical andpharmaceuticals

286

302

155.4

Environment

53

11057107.0Housing andconstruction
Electrical andelectronic parts

148102△ 45△ 30.9949723.1

Automobile53934075.8

Ship building

82921012.4

Medical31431239.1

Food123219150.9

Others348346△1△ 0.4

Net sales

Analytical instruments, mainly for energy-related applications,performed well. 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 oncost visualization, in-house production of machined parts, efficient
assembly production, and sales price revisions.

◆Energy sector•
Sales increased due to a large order for sulfur analyzers. Renewal
demand from the oil refining industry was also strong.
◆Chemical and pharmaceuticals•
Strong sales of analyzers at the new European base.
◆Environment•
The new product “Automatic Quick Furnace AOF/AQF-5000H,”
launched in March, meets the demand for analysis of organic fluorine
in accordance with the European PFAS regulation. Inquiries about
microbubbles are increasing due to interest in environmentally friendlyproducts.
◆Housing and construction•
Sales of the ground investigation equipment “GEOKARTE IV” remainedsluggish due to a lack of growth in the number of detached housingstarts.
◆Automobile•
Demand for resistivity meters increased for inspection equipment,
battery materials, etc.
◆Ship building•
Demand is expected to increase due to strong demand for modification
projects, such as special-purpose vessels for offshore development,
smart ships, solar panel installations, etc.
◆Others•
Demand increased for renewal of existing products that had beenstagnant during the COVID-19 pandemic.

7

Overview of Results by Segment – Medical Segment
MillionYenMillion
Yen

Net sales

Outlook

Operating income

1021Q

12Q

3Q
2023

Unit: Mil yen/ %01Q

1Q

△ 30△ 30

△ 292Q

3Q

4Q

2024

△ 321Q

2023•

Sales of oxygen concentrators for medical
equipment slumped with the end of the COVID-19
pandemic. The Company plans to expand and meetmarket needs outside of the existing medicalindustry, such as for healthcare applications.

2023/122024/12•

Obtained the domestic patent for “High purity biosoluble magnesium for medical use” in June 2023.
Application for overseas patents in major countries
have been completed and are scheduled to begranted. 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
to obtain a license for sales of medical products andestablishing a quality control system. The Company
will also gather information on the applicability ofthis material.

1Q

1Q

AmountAmount•New projects utilizing our existing technologies havebeen initiated and are ongoing. Plan to expand
medical equipment.

2024

YoY
Amount% Change100△ 10△ 99.0Medical100△ 10△ 99.0

Others－－－－Net Sales

The medical illuminator “FREELED” did not achieve
full adoption despite efforts to collect market needs
and make proposals while reducing costs, a highcustomer demand after the COVID-19 pandemic.
Going forward, the Company will focus on
strengthening PR through sales companies, aiming
for full adoption of the product.

△ 2124Q•8Balance Sheet (Consolidated)
Unit : Million yen/%

Year ended Dec 2023

Year ending Dec 2024/1Q

AmountAmountRatio (%)

Ratio (%)

YoY
Amount change% Change

Assets33,822
8,849

63.4
16.6

33,996
8,843

63.4
16.5

173
△60.5
△ 0.1

Electronically recorded monetaryclaims - operating

12,79424.0

12,715

23.7

△ 78

△ 0.6

inventory

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

20.7
36.6
26.5
1.9
8.2
100.0

11,432
19,607
14,181
978
4,447
53,603

21.3
36.6
26.5
1.8
8.3
100.0

408
8551
△ 2155
258

3.7
0.4
0.4
△ 2.2
1.3
0.5

12,901

24.2

12,737

23.8

△ 163

△ 1.3

8,615

16.2

8,521

15.9

△ 94

△ 1.1

1,574
4,040
16,941

3.0
7.6
31.8

1,552
3,974
16,712

2.9
7.4
31.2

△ 21
△ 65
△ 229

△ 1.4
△ 1.6
△ 1.4

3,522
29,400△ 1,562
36,402

6.6
55.1
△ 2.9
68.2

3,522
29,537△ 1,562
36,890

6.6
55.1
△ 2.9
68.8

－
137
0488－
0.5－
1.3

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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)
2024/12 Full Year(Forecast)

2023/12 Full Year
Unit : Million yen/%AmountRatio (%)

AmountYoY
AmountChangeRatio (%)

% Change

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

7.3

664

23.4

Net income attributed to shareholders of
the parent company

1,734

3.9

2,100

4.4

365

21.1

Net income per share (yen)

46.95

-

57.46---

Main points
Net Sales

Operating
Income⚫ While the first half of this fiscal year is expected to remain weak due toinventory adjustments, slowing economic growth in major countries, andgeopolitical risks, the excessive inventory levels are being resolved.
Capital investment appetite is also on a recovery track, especially in theautomobile industry, and a group-wide recovery is expected from thesecond half of the fiscal year. In particular, demand is expected in theautomobile, household goods, and energy-related industries.
⚫ Plans to improve profitability by consolidating fastener plants, passing
on material and labor costs to sales prices, reviewing parts andmaterials, and producing machined parts in-house.

Changes in the balance oforder backlog

1Q

1Q

1Q

2022

2023

2024

11

Net Sales and Operating Income Forecast by Segment (Consolidated)（Million Yen）

Business

Fastener
Business

Assembly
MachineBusiness

ControlSystem
Business

MedicalBusiness

Change in net sales by segment（Million Yen）

Major market trend

Change in Operating Income by segment

Initiatives for this fiscal year

Changes in the balance oforder backlog

Automobile

Inquiries are increasing due to the growing need for lightweight andthin sheet materials for EVs. Orders are expected to increase fromsummer onward.

Housing andconstruction

The industry is experiencing shortages of labor and materials, butthere is demand for large-scale construction projects in Japan.

Householdgoods

Expect an increase in orders for game consoles from January onward
through the summer.

Automobile

Orders for CASE-related screw fastening machines and equipment for
new vehicle models are on track for recovery.

Electrical andelectronicparts

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 to decarbonization,
demand for renewable fuels such as SAF and synthetic fuels isexpected to increase.

Environment

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

Automobile

Orders for inspection equipment are expected to increasesignificantly from 2Q onward, including the first order for the partsinspection machine “MISTOL” for welded steel pipes in Indonesia.

Development
planPlan 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 anddevelop new products.
12

Promote sales of “AKROSE” and “JOISTUD” series forautomotive applications, and the new “CUP BOLT,”
which does not require a washer, for housing andconstruction applications. In response to rising wire
rod costs, the Company is in the process of raisingproduct prices. In addition, efforts will be made toreduce manufacturing costs through restructuring ofplants, 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 outsideof the automobile industry, the Company is also
developing new partner plants. In addition to thedevelopment of new products, The Company will
also focus on cost reduction by reviewing parts andpackaging materials and visualizing procurement
prices.
Expand sales of the new “Automatic quick furnace
AOF/AQF-5000H” for electronic materials and PFASrelated demand. Develop new products related toinspection equipment to meet the needs for laborsaving and automation. In addition, the Company
will focus on cost visualization, in-house productionof machined parts, efficient assembly production,and sales price revisions.

1Q

1Q

1Q

2022 2023 2024

1Q

1Q

1Q

2022 2023 2024

1Q

1Q

1Q

2022 2023 2024