Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 13, 2024

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
(Under Japanese GAAP)
Company name: Nifco Inc.
Listing:
Tokyo Stock Exchange
Securities code:
7988
URL:
https://www.nifco.com/en/
Representative:
Masaharu Shibao, President & CEO
Inquiries:
Toshiki Yauchi, Director, Senior Executive Managing Officer & CFO
Telephone:+81-3-5476-4853
Scheduled date of ordinary general meeting of shareholders:June 20, 2024
Scheduled date to commence dividend payments:
June 21, 2024
Scheduled date to file annual securities report:
June 20, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Millions of yen% Millions of yen

371,639
321,771

Note: Comprehensive income

15.5
13.4

27.5
12.8

49,66537,876

For the fiscal year ended March 31, 2024:
For the fiscal year ended March 31, 2023:

Basic earnings
per share
Fiscal year ended
March 31, 2024
March 31, 2023

% Millions of yen

43,92534,439Diluted earnings
per shareYen

183.26211.28

Profit attributable toowners of parent

Ordinary profit%(13.8)(7.8)[(9.1)%][1.1%]

Ratio of ordinary Ratio of operating
profit to total assets profit to net sales%––

18,252
21,170¥30,491 million¥33,527 million

Return on equity

Yen% Millions of yen

31.1
12.7

%

7.8
10.0

13.4
10.9

%

11.8
10.7

Note: Diluted profit attributable to owners of parent per share of the fiscal years ended March 31, 2024 and March 31, 2023
are not shown in the above table, as there are no potential common shares with dilution effect.

(2) Consolidated financial position
Total assets
As ofMarch 31, 2024
March 31, 2023
Reference:

Net assets

Millions of yen

Millions of yen

380,405
359,150

247,052
226,127

EquityAs of March 31, 2024:
As of March 31, 2023:¥243,695 million¥223,551 million

Equity-to-asset ratio
%

64.1
62.2

Net assets per share
Yen

2,455.97
2,237.06

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

47,25737,261(8,135)(11,530)(26,024)(17,418)

142,024
122,233

2. Cash dividends
Annual dividends per share

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
(Forecast)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Total

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Total cash
dividends(Total)Yen Millions of yen

%

%

–

31.00

–

33.00

64.00

6,406

30.3

3.0

–

32.00

–

32.00

64.00

6,388

34.9

2.7

–

35.00

–

35.00

70.00

25.9

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2025 (from April 1, 2024 toMarch 31, 2025)
Net sales
Millions of yen

Fiscal year ending
March 31, 2025

340,000(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings
owners of parent
per share

Operating profit% Millions of yen(8.5)

45,000% Millions of yen

2.4

44,200% Millions of yen(11.0)

26,100

%

Yen

43.0

262.05

Note: As the Company practices performance management on an annual basis, we have omitted the consolidated earnings
forecasts for the second quarter (cumulative).

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): Yes
Newly included: – company
Excluded:
1 company (company name): Nifco (Chongqing) Limited Liability Company
The Company’s specific subsidiary Nifco (Chongqing) Limited Liability Company was omitted from specificsubsidiaries due to the completion of liquidation proceedings in September 2023.

(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

100,257,053 shares

As of March 31, 2023

107,508,954 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2024

1,031,017 shares

As of March 31, 2023

7,577,913 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2024

99,599,221 sharesFiscal year ended March 31, 2023

100,198,315 shares* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements or projections included in this document, including earnings projections, arebased on currently available information and certain premises that are judged to be rational at the time ofthis writing. Actual results may differ greatly from the forecast figures depending on various factors. For
assumptions used for earnings forecasts and notes on the use of earnings forecasts, etc., please refer to“1. Overview of Operating Results, etc., (4) Future Outlook.” on page 4 of the Attached Materials.

Nifco Inc. (7988)○ Attached Materials Table of Contents
Index
1. Overview of Operating Results, Etc. ........................................................................................................ 2(1) Overview of Operating Results During the Period ............................................................................. 2(2) Overview of Financial Position During the Period ............................................................................ 3(3) Overview of Cash Flows During the Period....................................................................................... 4(4) Future Outlook ................................................................................................................................... 5(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Periods ....................... 5
2. Corporate Group ....................................................................................................................................... 6
3. Basic Stance Toward the Selection of Accounting Standards ................................................................... 7
4. Consolidated Financial Statements and Main Notes................................................................................. 8(1) Consolidated Balance Sheet ............................................................................................................... 8(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .......... 10(3) Consolidated Statement of Changes in Equity ................................................................................. 12(4) Consolidated Statement of Cash Flows ............................................................................................ 14(5) Notes in Relation to the Consolidated Financial Statements ............................................................ 16- Notes regarding the going concern assumption ............................................................................. 16- Changes in accounting policies ...................................................................................................... 16- Changes in presentation ................................................................................................................. 16- Consolidated balance sheet ............................................................................................................ 16- Consolidated statements of income and comprehensive income ................................................... 16- Segment Information, etc. .............................................................................................................. 18- Per-share information ..................................................................................................................... 20- Significant events after reporting period ........................................................................................ 20- Omission of disclosure ................................................................................................................... 21- 1 -Nifco Inc. (7988)

1. Overview of Operating Results, Etc.
(1) Overview of Operating Results During the Period
During the fiscal year under review (hereinafter “the period”), the Japanese economy experienced
production cuts in the automobile industry and weak exports of goods in the manufacturing sector due
to the suspension of shipments by some automobile manufacturers and other factors. On the other hand,in the non-manufacturing sector, business confidence improved significantly due to factors such as arecovery in inbound demand, increased margins from price pass-through, and progress in digitalization.
Looking overseas, in the Chinese economy, although business conditions made a rapid recovery going
into 2023 on the lifting of the zero-COVID-19 policy, they have slowed since spring because of factors
such as the end of stay-at-home demand, a slowdown in exports of IT-related products, and a stagnant
real estate market. The European economy also experienced a slowdown due to global sluggishness indemand for goods, as well as pent-up demand and inbound demand running their course post-COVID19 pandemic in the service sector. In the U.S. economy, the manufacturing sector continued to increase
production of automobiles and high-tech-related goods in industrial production, while a trend of
production decline continued in other manufacturing sectors. Meanwhile, in the non-manufacturingsector, business conditions improved in areas such as agriculture, forestry, and fisheries,
accommodation and food services, and health care, boosting the economy overall. As a result, theglobal economy was generally on a recovery trend despite some regional weaknesses. However, theoutlook remains uncertain due to factors such as the stagnant real estate market within the Chinese
economy, continuing situation of tensions in the Middle East, and anticipated changes in theinternational political balance as a result of elections in various countries around the world.
With regard to automobile manufacturers, which are the main customers of Nifco Inc. (the “Company”)
and its consolidated subsidiaries (collectively, the “Group”), in the Japanese market, both production
volume and sales volume increased year on year for the period, despite the impact from factors such assuspended shipments by some automobile manufacturers. In overseas markets as well, due to the easingof semiconductor supply constraints, etc., both production and sales volumes in China, Europe, theU.S., and other markets increased year on year.
As a result, the Group’s consolidated earnings were as follows. Net sales for the period amounted to371,639 million yen, up 15.5% year on year. In terms of profits, operating profit increased 27.5% year
on year to 43,925 million yen, due to controlling increases in fixed costs such as depreciation andpersonnel expenses, despite the soaring prices of raw materials and electricity. Ordinary profit
increased 31.1% year on year to 49,665 million yen due to foreign exchange gains resulting from thedepreciating yen. Profit attributable to owners of parent decreased 13.8% year on year to 18,252
million yen, mainly due to the posting of 18,765 million yen in extraordinary losses, including aallowance for losses on business transfer related to the transfer of the German business and an
impairment loss.
Recognition, analysis and discussion of operating results by segment are as follows.
Net sales in each segment are to external customers.
(i) Industrial plastic parts & components[For the domestic automobile industry]
For automotive production in Japan, sales exceeded the initial plan and the previous year's results fromthe first to the third quarter due to increased production in response to the elimination of the shortage ofsemiconductors. However, the fourth quarter sales did not exceed the plan due to a series of production
cuts in connection with the certification test irregularities by a number of automobile manufacturers
since December 2023 and the Noto Peninsula Earthquake. However, the full-year sales total exceeded
the plan due to factors such as contributions from mold sales associated with the launch of newvehicles, compensation for electric power charges, compensation for production cutbacks, and pricerevision negotiations.

- 2 -Nifco Inc. (7988)[For the overseas automobile industry]
Overseas, both net sales and profits exceeded the plan and increased year on year thanks to support
from generally strong automobile demand. In particular, business for Korean OEMs remained strong
due to factors such as increased production by customers, and both net sales and profits substantiallyexceeded the plan and increased year on year, especially in Korea, North America, and Europe. For
Japanese OEMs, net sales and profits increased overall supported by strong sales by customers in the
U.S., where sales and profits increased, and also firm performance mainly in India and Indonesia.
However, in China, Japanese OEMs struggled due to sluggish sales, resulting in an overall decrease in
net sales and profit. Furthermore, in Europe, the German OEM business faced a difficult time in terms
of profits. In particular, the U.S. subsidiary that conducts business for German customers sufferedlosses due to operational problems. In the current fiscal year, we aim to further boost profitability by
improving our business portfolio through the sale of the German OEM business to purge loss-making
businesses, while strengthening capital investment in the strong Korean OEM business and theJapanese OEM business in North America and India.
[For other industries]
In the housing and living sector, the number of new housing starts was sluggish due to soaring
construction costs and real estate prices, leading to a decline in production related to household
equipment, where the Group has major customers, and this resulted in performance falling short of theinitial plan. In the sports and outdoor sector, sites in China delivered higher profits due to aggressive
sales activities to brands made in China, but performance fell short of the initial plan due to continued
significant production cutbacks at major customers in Europe and the U.S. caused by a drop in
consumption due to global inflation.
As a result of the above, net sales in the industrial plastic parts & components business increased
15.9% from the previous fiscal year to 334,729 million yen. Segment profit increased 25.8% year on
year to 42,840 million yen.
(ii) Bedding & furniture
In the bedding & furniture business, both net sales and profits increased due to steady sales to retailers
and exports, as well as strong demand from hotels, partly reflecting inbound demand recovery, although
the market in Japan was affected by factors such as soaring raw material prices and cost increases dueto the yen's depreciation. Meanwhile, demand overseas from hotels increased at all sites, as it did inJapan, and wholesale and retail sales grew steadily, especially in China, resulting in higher net sales andprofits. As a result, net sales in the bedding & furniture business increased 11.7% year on year to
36,910 million yen. Segment profit increased 11.2% year on year to 6,544 million yen.
(2) Overview of Financial Position During the Period(Millions of yen)
As of March 31,2023

As of March 31,
2024

359,150
223,55162.2%

380,405
243,695
64.1%

Total assets
Equity capital
Equity-to-asset ratio

Change21,255
20,144
1.8p

Assets as of March 31, 2024 stood at 380,405 million yen, an increase of 21,255 million yen from theend of the previous fiscal year. The main factors for the increase were a 5,148 million yen increase inaccounts receivable–trade, a 1,446 million yen increase in investment securities and a 1,164 million yen
increase in retirement benefit asset, despite a 7,967 million yen decrease in property, plant andequipment. In addition, cash and deposits increased by 19,991 million yen.

- 3 -

Nifco Inc. (7988)

Liabilities as of March 31, 2024 stood at 133,353 million yen, an increase of 330 million yen from theend of the previous fiscal year. The main factors for the increase were an increase of 10,068 million yen
in allowance for losses on business transfer, an increase of 1,525 million yen in notes and accounts
payable–trade and an increase of 1,353 million yen in accounts payable–other, despite a decrease of
13,568 million yen in borrowings.
Net assets as of March 31, 2024 stood at 247,052 million yen, an increase of 20,924 million yen fromthe end of the previous fiscal year. The main factors for the increase were increases of 6,842 million
yen in retained earnings and 10,017 million yen in foreign currency translation adjustment due to yen
depreciation. As a result, equity ratio was 64.1% and net assets per share was 2,455.97 yen.
(3) Overview of Cash Flows During the Period(Cash flows from operating activities)
Net cash provided by operating activities during the period totaled 47,257 million yen, an increase of
9,995 million yen from 37,261 million yen provided in the previous year. This was mainly due to anincrease in other liabilities and accrued consumption taxes changing from a decrease to an increase.
(Cash flows from investing activities)
Net cash used in investing activities totaled 8,135 million yen, an increase of 3,395 million yen from11,530 million yen used in the previous year. This was mainly due to payments into time deposits
exceeding proceeds from withdrawal of time deposits.
(Cash flows from financing activities)
Net cash used in financing activities totaled 26,024 million yen, a decrease of 8,606 million yen from17,418 million yen used in the previous year. This was mainly due to an increase in repayments oflong-term borrowings.
As a result, cash and cash equivalents as of March 31, 2024 increased 19,790 million yen from the endof the previous period to 142,024 million yen.

FY2019Equity ratio

FY2020

FY2021

FY2022

FY2023

(%)

54.8

57.5

59.5

62.2

64.1

Equity ratio on market value basis (%)

65.2

133.4

83.9

104.3

100.7

Ratio of interest-bearing debt to cash
flows
(years)

2.3

1.8

2.2

1.7

1.1

Interest coverage ratio

55.1

72.6

66.9

75.2

59.1

Notes:(times)Equity ratio: Equity capital / Total assets
Equity ratio on market value basis: Market capitalization / Total assets
Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments* All indicators are calculated based on consolidated financial figures.
* Market capitalization is calculated by multiplying the closing share price at the end of the period by the
number of issued shares (less treasury shares) at the end of the period.
* Cash flows from operating activities in the consolidated statements of cash flows are used for cash flows.
Interest-bearing debt includes all liabilities on the consolidated balance sheets for which interest is paid. Forinterest payments, interest paid in the consolidated statements of cash flows is used.

- 4 -Nifco Inc. (7988)(4) Future Outlook
Although automobile production is on a gradual recovery trend, the outlook is uncertain due to factors
such as the geopolitical risks, high raw material and logistics costs, inflation, rising wage costs, andother factors that put pressure on earnings, as well as the impact of currency exchange rates due to an
appreciating yen.
Despite this challenging environment, we expect actions to sell unprofitable bases, rigorous
management of fixed costs and production improvement activities to result in net sales of 340.0 billion
yen, operating profit of 45.0 billion yen, ordinary profit of 44.2 billion yen, and profit attributable toowners of parent of 26.1 billion yen for the fiscal year ending March 31, 2025.
The foreign exchange rates assumed in this performance outlook are 1 USD = ¥143 and 1 EUR = ¥155.
*Notes regarding the use of earnings forecasts
Forward-looking statements are based on assumptions and beliefs by the Company’s management inlight of the information currently available to it and involve potential risks and uncertainties. Actual
results may differ greatly from these forward-looking statements due to changes in various factors.
(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Periods
The Company strives to promote a dividend policy linked to business performance while maintaining abasic policy of continuous stable dividends.
The Company plans to maintain the original dividend of 32 yen per share at the end of the current fiscal
year. As a result, together with the interim dividend of 32 yen per share paid on November 27, 2023,
the annual dividend per share will be 64 yen per share. For the fiscal year ending March 31, 2025,
based on the current earnings forecast, we plan to pay an annual dividend of 70 yen per share, anincrease of 6 yen per share.

- 5 -Nifco Inc. (7988)

2. Corporate GroupThe following is a schematic diagram of the Company's businesses.
Consolidated subsidiaries and equity method affiliates are as follows.
[Business category]

Product category(sales category)(The Company)

Industrial plastic
fasteners and plastic
precision molded parts

Industrial
plastic parts&
components

Nifco Inc.
(Manufactureand sale)

Molds(Subsidiaries and associates)*Nifco America Corporation*Nifco Korea USA Inc.
*Nifco KTW America Corporation*Nifco Central Mexico S.de R.L.de C.V.
*Nifco U.K. Ltd.
*Nifco Poland Sp.z o.o.
*Nifco Korea Poland Sp.z o.o.
*Nifco Germany GmbH
*Shanghai Nifco Plastic Manufacturer Co., Ltd.
*Dongguan Nifco Co., Ltd.
*Tifco (Dongguan) Co., Ltd.
*Beijing Nifco Co., Ltd.
*Nifco (Tianjin) Co., Ltd.
*Nifco (Hubei) Co.,Ltd*Nifco (Jiangsu) Co.,Ltd.
*Nifco Yancheng Co.,Ltd.
*Nifco (HK) Ltd.
*Nifco Taiwan Corporation*Nifco Korea Inc.
*Nifco (Thailand) Co.,Ltd.
*Union Nifco Co., Ltd.
*Nifco Manufacturing (Malaysia) Sdn. Bhd.
*Nifco Vietnam Ltd.
*Nifco India Private Ltd.
*Nifco South India Manufacturing Private Ltd.
*PT.Nifco Indonesia, and others*Nifco Yamagata Inc.
*Nifco Kumamoto Inc.
*Nifco Kitakanto Inc.

: Nichiei Seiki Co., Ltd.

*Simmons Co., Ltd.
*Simmons Bedding & Furniture (HK) Limited*Shanghai Simmons Bedding & Furniture Sales
Limited*Beijing Simmons Bedding & Furniture Limited*Shenzhen Simmons Bedding & Furniture Limited*Simmons Bedding & Furniture (Suzhou) Limited*Simmons (Southeast Asia)Private Limited*Simmons Bedding & Furniture (Taiwan) Limited, andothersBedding&furniture

Note: * = consolidated subsidiaries, : = associates
Product
Molds
s,

- 6 -

Nifco Inc. (7988)

3. Basic Stance Toward the Selection of Accounting Standards
The Group has adopted Japanese generally accepted accounting principles (GAAP) for the purpose ofcomparability of consolidated financial statements among enterprises. However, the Group is currently
studying the establishment of a system to prepare for the future application of IFRS, as well as theaccounting policy and timing of its application.

- 7 -Nifco Inc. (7988)

4. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - trade
Contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Molds
Accumulated depreciation
Molds, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other

- 8 -

As of March 31, 2024

129,793
1,668

149,784
1,750

7,771

8,114

52,262786
691
27,966
3,226
10,0209,742(261)
243,668

57,4101,171
1,144
27,414
3,173
10,2899,844(292)
269,806

76,796(28,677)
48,11877,490(57,710)
19,78027,307(22,880)
4,426
86,232(81,774)
4,458
18,502
99
(54)
44
2,913
6,676
104,92180,570(34,952)
45,61885,901(68,225)
17,67529,422(25,456)
3,966
86,835(82,221)
4,614
18,973
98
(51)
46
2,851
3,207
96,953

467
1,419
1,887

–
1,407
1,407

3,317
963
1,664
2,728

4,764
1,847
2,829
2,797

Nifco Inc. (7988)(Millions of yen)
As of March 31, 2023
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Provision for bonuses
Allowance for losses on business transfer
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 9 -As of March 31, 2024

(0)
8,673
115,482359,150(0)12,238110,599
380,405

25,076
8,903
10,209
5,190
5,329
4,240
2,517
–
10,27771,74426,601
5,529
10,075
6,543
5,523
4,899
2,924
10,068
11,92484,09135,00010,345
7,175
1,818
6,938
61,278133,023

35,000
285
6,344
1,886
5,746
49,262
133,353

7,290
13,908208,459(19,691)
209,966

7,290–
215,302(3,608)218,983

737

2,028

(63)
6
13,002(96)
13,5852,576
226,127
359,150(21)
623,019(320)
24,712
3,356
247,052
380,405

Nifco Inc. (7988)(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Packing and transportation costs
Advertising expenses
Remuneration, salaries and allowances
Employees’ bonuses
Provision for bonuses
Retirement benefit expenses
Other personnel expenses
Rent expenses
Travel and transportation expenses
Depreciation
Research and development expenses
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Gain on valuation of investment securities
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit- 10 -

Fiscal year ended
March 31, 2024

321,771
235,927
85,843

371,639
269,936
101,703

9,614
1,560
13,533
2,199
1,326
917
4,528
2,359
901
2,672
1,960
322
9,506
51,40334,439

11,131
1,721
15,123
1,804
2,288
1,007
5,114
2,356
1,190
3,017
1,930
354
10,737
57,77743,925

527
413
2,315
1,282
4,538

1,369
61
4,383
1,023
6,838

520
581
1,101
37,876

720
378
1,098
49,665

Nifco Inc. (7988)(Millions of yen)
Fiscal year ended
March 31, 2023
Extraordinary income
Gain on sale of non-current assets
Insurance claim income
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on sale and retirement of non-current assets
Business restructuring expenses
Loss on COVID-19
Allowance for losses on business transfer
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests*1

Fiscal year ended
March 31, 2024

42
116
158
1,903
128
317
28
–
2,378
35,657
12,670855
13,526
22,130- 11 -

76
–
76
*2

*3

8,531
165
–
–
10,06818,76530,975
13,901(2,212)
11,68919,286

21,170960

18,252
1,033

(161)
(27)
10,976608
11,39633,527

1,291
42
10,096(224)
11,20530,491

32,526

29,379

1,000

1,112

Nifco Inc. (7988)(3) Consolidated Statement of Changes in Equity
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

7,290

Balance at beginning of period

Retained earnings

13,863

Total shareholders’equityTreasury shares

193,531(18,737)

195,946

Changes during period
Dividends of surplus(6,241)(6,241)

Profit attributable to ownersof parent

21,17021,170Purchase of treasury shares(1,328)(1,328)

373

419

45

Disposal of treasury shares
Cancellation of treasury
sharesTransfer from retained
earnings to capital surplus
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period–

45

14,928(954)

14,0197,290

13,908208,459(19,691)

209,966

Accumulated other comprehensive income
Valuationdifference on Deferred gains Revaluation
availableor losses onreserve forfor-salehedgeslandsecurities
Balance at beginning of period

898

(36)

6

Total
Foreign
Remeasureaccumulated
currency
ments ofothertranslation defined benefit
comprehenadjustment
plans
sive income
2,062

(701)

2,228

Noncontrollinginterests

Total net
assets2,700

200,875

Changes during period
Dividends of surplus(6,241)

Profit attributable to ownersof parent

21,170Purchase of treasury shares(1,328)

Disposal of treasury shares

419

Cancellation of treasury
sharesTransfer from retained
earnings to capital surplus
Net changes in items otherthan shareholders’ equity

(161)

(27)

–

10,940604

11,356(124)

11,232

Total changes during period

(161)

(27)

–

10,940604

11,356(124)

25,252

Balance at end of period

737

(63)

6

13,002(96)

13,5852,576

226,127- 12 -

Nifco Inc. (7988)

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

7,290

Retained earnings

13,908

Total shareholders’equityTreasury shares

208,459(19,691)

209,966

Changes during period
Dividends of surplus(6,520)(6,520)

Profit attributable to owners ofparent18,252

18,252

Purchase of treasury shares(3,037)(3,037)

67

256

323

Cancellation of treasury shares(18,864)

18,864–

Transfer from retained earnings
to capital surplus

4,889(4,889)–(13,908)

6,842

16,083

9,017

7,290

–

215,302(3,608)218,983

Disposal of treasury shares–

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference on Deferred gains Revaluation
availableor losses onreserve forfor-salehedgeslandsecurities
Balance at beginning of period

737

(63)

6

Total
Foreign
Remeasureaccumulated
currency
ments ofothertranslation defined benefit
comprehenadjustment
plans
sive income
13,002(96)

13,585

Noncontrolling Total net assetsinterests

2,576

226,127

Changes during period
Dividends of surplus(6,520)

Profit attributable to owners ofparent18,252

Purchase of treasury shares(3,037)

Disposal of treasury shares

323

Cancellation of treasury shares–

Transfer from retained earnings
to capital surplus–

Net changes in items other thanshareholders’ equity

1,291

42

–

10,017(223)

11,127780

11,907

Total changes during period

1,291

42

–

10,017(223)

11,127780

20,924

Balance at end of period

2,028

(21)

6

23,019(320)

24,712

3,356

247,052- 13 -

Nifco Inc. (7988)(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit before income taxes
Impairment losses
Depreciation
Amortization of goodwill
Insurance claim income
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in allowance for losses on
business transfer
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of non-current
assetsLoss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sale and redemption of securities
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing activities- 14 -

Fiscal year ended
March 31, 2024

35,657
1,903
13,768322(116)

30,975
8,531
14,256
354
–

(38)

14

248
61
(1,234)371(106)(1,126)–

10,068(595)
520(1,645)(1,453)720(3,662)

86

89

(413)
(39)
1,010
(1,368)965(61)(2,608)
2,688
(1)
14

(1,295)

927

(637)
251
47,413
584
(495)
116
(10,357)
37,261

1,226(519)
60,700
1,468
(799)
–
(14,112)47,257(13,988)
9,777
(11)
188
(8,607)
650
(12)
362
110
(11,530)(17,063)
16,834–12(8,799)
345
(13)
581
(32)
(8,135)

Nifco Inc. (7988)(Millions of yen)
Fiscal year ended
March 31, 2023
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Repayments of lease liabilities
Repayments of long-term borrowings
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -

Fiscal year ended
March 31, 2024

3,830
(7,525)(1,771)(3,513)387(1,328)(6,241)(1,255)(17,418)

0(4,106)(2,199)(10,203)
323(3,037)(6,519)(280)(26,024)

3,928

6,692

12,241
109,992
122,233

19,790122,233
142,024

Nifco Inc. (7988)(5) Notes in Relation to the Consolidated Financial Statements- Notes regarding the going concern assumption
Not applicable.
- Notes on significant changes in the amount of shareholders’ equity
The Company cancelled treasury shares on September 29, 2023 in accordance with the resolution of theBoard of Directors meeting held on September 4, 2023. As a result, capital surplus and treasury shares
decreased by 18,864 million yen and 18,864 million yen, respectively.
Accordingly, a negative value of 4,889 million yen accrued in capital surplus was transferred fromretained earnings at the end of the fiscal year ended March 31, 2024. Since this is a transfer between
accounts in shareholders’ equity, there is no change in the amount of the Group’s total shareholders’equity.
- Changes in accounting policies
Not applicable.
- Changes in presentation- Consolidated statements of income and comprehensive income“Gain on valuation of derivatives” and “Subsidy income” under “Non-operating income” and“Compensation expenses” and “Loss on valuation of derivatives” under “Non-operating expenses,”
which were presented independently in the previous fiscal year, are included in “Other” under “Nonoperating income” and “Other” under “Non-operating expenses,” respectively, from the current fiscal
year due to monetary insignificance.
As a result, “Gain on valuation of derivatives” of 88 million yen and “Subsidy income” of 545 million
yen, which were presented under “Non-operating income” in the consolidated statements of income
and comprehensive income for the previous fiscal year, have been reclassified under “Other” of 1,282
million yen. In addition, “Compensation expenses” of 117 million yen presented under “Non-operating
expenses” has been reclassified under “Other” of 581 million yen.
In the consolidated statements of income and comprehensive income for the current fiscal year, “Losson valuation of derivatives” of 13 million yen has been reclassified and presented under “Other” of 378
million yen.
- Consolidated balance sheet
1. Contingent liability
On-site investigation by Korea Fair Trade Commission
Our Korean consolidated subsidiary was subject to an on-site investigation by the Korea Fair Trade
Commission (South Korea) on July 5, 2023 (local time), on suspicion of violating the Monopoly
Regulation and Fair Trade Act in relation to trade in industrial plastic parts & components products.
Although the investigation is still ongoing, the results may have an impact on the Group's businessresults and financial position.
- Consolidated statements of income and comprehensive income*1 Insurance claim income
It is proceeds from insurance income for the fire accident that occurred in February 2020 at Nifco
Germany GmbH, an overseas consolidated subsidiary.

- 16 -

Nifco Inc. (7988)*2 Impairment losses
Location

Purpose of use

Nifco Germany GmbH

Industrial
plastic parts &components

Nifco KTW America Corporation

Industrial
plastic parts &components

Type
Machinery, equipment andvehicles, tools, furniture andfixtures, other tangible fixed
assets, etc.
Buildings and structures,
machinery, equipment andvehicles, etc.

Amount of
impairment loss
5,368 million yen

3,162 million yen

On March 12, 2024, the Company concluded an agreement with AEQUITA SE & Co. KGaA,
headquartered in Munich, Germany, to transfer Nifco Germany GmbH, a consolidated subsidiary, andits subsidiary Nifco KTW America Corporation. In the event of sale, the business subject to sale isgrouped as a single cash-generating unit. The assets related to the business subject to this sale wereclassified and measured as held for sale in accordance with IFRS 5 “Non-current Assets Held for Saleand Discontinued Operations.” As a result, the fair value less costs to sell was less than the carrying
amount. Consequently, the carrying amount was reduced to the fair value less costs to sell and the
reduction was recognized as an impairment loss (8,531 million yen).
The main items in the breakdown of these are as follows: Nifco Germany GmbH (Machinery,equipment and vehicles, 1,552 million yen; Tools, furniture and fixtures, 517 million yen, Other
tangible fixed assets, 2,048 million yen;) and Nifco KTW America Corporation (Buildings andstructures, 1,896 million yen; Machinery, equipment and vehicles, 1,173 million yen).
*3 Allowance for losses on business transfer
On March 12, 2024, the Company concluded an agreement with AEQUITA SE & Co. KGaA,
headquartered in Munich, Germany, to transfer Nifco Germany GmbH, a consolidated subsidiary, andits subsidiary Nifco KTW America Corporation. The amount of loss expected to be incurred as a resultof this transfer is recorded as an allowance for losses on business transfer (10,068 million yen).

- 17 -

Nifco Inc. (7988)- Segment Information, etc.
[Business segment information]
1. Description of Reportable Segments
The Company's reportable segments are those components of the Company for which separate
financial information is available and are subject to periodic review by the Board of Directors todetermine the allocation of management resources and evaluate their performance.
The Company has two reportable segments based on the type and nature of its products: theindustrial plastic parts & components segment and the bedding & furniture segment.
Major products and services in each reportable segment are as follows.
(1) Industrial plastic parts & components: Industrial plastic fasteners and precision molded plastic
products(2) Bedding & furniture: Various beds, reclining chairs
2. Explanation of Measurements of Sales, Profit (Loss), Assets, Liabilities, and Other Items for Each
Reportable Segment
Accounting methods for reported business segments are generally the same as those described in“Notes - Significant accounting policies for preparation of consolidated financial statements.”
The profit or loss of each reportable segment is its operating profit or loss.
Intersegment revenues are based on prevailing market prices.
3. Disclosure of Sales, Profit (Loss), Assets, Liabilities, and Other Items for Each Reportable Segment
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Reportable segments
Industrial plastic
parts &
components
Net sales(1) Net sales to externalcustomers(2) Intersegment sales ortransfers
Total

Bedding& furniture

Adjustment(Note 1)
(Note 3)(Note 4)

Total

(Millions of yen)Amountreported inconsolidated
financialstatements(Note 2)

288,734

33,037321,771–

321,771

–

0

0

(0)

–

288,734

33,037321,771(0)

321,771

Segment profit (loss)

34,0505,885

39,936(5,496)34,439Segment assets

244,700

40,252284,952

74,197359,150

11,922

1,712

13,634134

13,768

8,424

393

8,817

54

8,872

Other items
Depreciation
Increase in property, plant andequipment and intangible
assets

Notes: 1. Adjustment of segment profit (loss) of (5,496) million yen represents corporate expenses. Corporate expenses aremainly general and administrative expenses not attributable to reportable segments.
2. Segment profit (loss) is adjusted for operating profit in the consolidated statement of income and statement ofcomprehensive income.
3. The adjustment of 74,197 million yen for segment assets includes 74,324 million yen in corporate assets notallocated to each reportable segment and (127) million yen in eliminated intersegment transactions.
4. The adjustment of 54 million yen for increase in property, plant and equipment and intangible assets represents
capital investment in corporate assets that are not allocated to each reportable segment.

- 18 -

Nifco Inc. (7988)

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)
Reportable segments
Industrial plastic
parts &
components
Net sales(1) Net sales to externalcustomers(2) Intersegment sales ortransfers
Total

Bedding& furniture

Adjustment(Note 1)
(Note 3)(Note 4)

Total

(Millions of yen)Amountreported inconsolidated
financialstatements(Note 2)334,729

36,910371,639–

371,639

–

0

0

(0)

–

334,729

36,910371,639(0)371,639

Segment profit (loss)

42,8406,544

49,385(5,459)43,925

Segment assets

263,565

44,525

308,091

72,314

380,405

12,264

1,877

14,142

113

14,256

9,706

251

9,957

60

10,018Other items
Depreciation
Increase in property, plant andequipment and intangible
assets

Notes: 1. Adjustment of segment profit (loss) of (5,459) million yen represents corporate expenses. Corporate expenses aremainly general and administrative expenses not attributable to reportable segments.
2. Segment profit (loss) is adjusted for operating profit in the consolidated statement of income and statement ofcomprehensive income.
3. The adjustment of 72,314 million yen for segment assets includes 72,427 million yen in corporate assets notallocated to each reportable segment and (112) million yen in eliminated intersegment transactions.
4. The adjustment of 60 million yen for increase in property, plant and equipment and intangible assets represents
capital investment in corporate assets that are not allocated to each reportable segment.

4. Disclosure of Impairment Losses on Non-current Assets for Each Reportable Segment
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Industrial plastic
parts &
components
Impairment
losses1,903

Bedding &furniture

Elimination or
corporate

–

–

Total
1,903

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Millions of yen)
Industrial plastic
parts &
components
Impairment
losses8,531

Bedding &furniture

Elimination or
corporate––- 19 -

Total
8,531

Nifco Inc. (7988)- Per-share information(Yen)
Fiscal year ended
March 31, 2023
Net assets per share
Basic earnings per share

Fiscal year ended
March 31, 2024

2,237.06 yen

2,455.97 yen

211.28 yen

183.26 yen

Notes: 1. Diluted earnings per share is not noted because there are no potential shares.
2. The basis for calculation of basic earnings per share is as follows.
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Basic earnings per share
Profit attributable to owners ofparent (millions of yen)

21,17018,252––

Profit attributable to owners ofparent available to commonshares (millions of yen)

21,17018,252Average number of shares during
the period (thousand shares)

100,198

99,599Amount not attributable tocommon shareholders (millions ofyen)

Notes: 3. The Company's shares remaining in trust, which are recorded as treasury shares in shareholders' equity, areincluded in the treasury shares deducted from the average number of shares during the period for the
calculation of basic earnings per share, and are also included in the number of treasury shares deducted fromthe total number of issued shares at the end of the period for the calculation of net assets per share.
Average number of shares of treasury stock during the period deducted in the calculation of basic earnings
per share
Fiscal year ended March 31, 2023: 454,460 shares;
Fiscal year ended March 31, 2024: 437,621 shares
Number of said shares of treasury stock at the end of the period deducted in the calculation of net assets per
share
Fiscal year ended March 31, 2023: 462,960 shares;
Fiscal year ended March 31, 2024: 427,549 shares- Significant events after reporting period(Purchase of treasury shares)
The Company purchased treasury shares in accordance with the resolution of the meeting of the Boardof Directors held on March 12, 2024. The treasury shares purchased after the balance sheet date are as
follows.
Status of treasury share purchase
(1)
(2)
(3)
(4)
(5)

Class of shares for purchaseTotal number of shares purchased
Total share acquisition price
Acquisition period
Acquisition method

Common shares of the Company
399,400 shares
1,520,961,200 yen
April 1, 2024 to April 25, 2024
Market purchase on the Tokyo Stock Exchange- 20 -

Nifco Inc. (7988)(Reference)
1. Contents of the resolution by the meeting of the Board of Directors held March 12, 2024
(1)
(2)

Class of shares for purchaseTotal number of shares authorized forpurchase

(3)
(4)
(5)

Total share acquisition price
Acquisition period
Acquisition method

Common shares of the Company
550,000 shares (maximum)(Share of total number of issued shares [excluding
treasury shares]: 0.55%)
2,000,000,000 yen (maximum)
March 14, 2024 to April 30, 2024
Market purchase on the Tokyo Stock Exchange

2. Cumulative total of treasury shares acquired based on the above resolution (as of April 26, 2024)(1)(2)

Total number of shares purchased
Total share acquisition price522,800 shares
1,999,829,300 yen- Omission of disclosure
Disclosure of notes other than the above has been omitted because the necessity of disclosure in thesummary of financial statements is not considered significant.

- 21 -