New Medium-Term Management Plan 2026
Nippon Seiki Co., Ltd. (Code: 7287)

November 2023

medium-term
01 Current
management plan
Achievements andChallenges

medium-term
02 New
management plan 2026

Contents◼
◼
◼
◼

Overview of the current medium-term management plan
Results and review of the current medium-term management plan
Recognition of market valuation and capital return
Management challenges and measures for improvement◼ Our management philosophy/corporate culture/management vision◼ Overall picture of the new medium-term management plan
◼ Business Strategy - Overall Policy‒ Expansion of HUD business‒ Improving profitability of European business‒ New customer/new product development◼ Capital policy‒ Shareholder return policy‒ Cash generation and allocation

S, G] supporting the
03 [E,
new medium-term

management plan 2026

◼
◼
◼
◼

Social issues solved through business
E - Contribution to decarbonization and resource circulation
S - Investing in global quality and human capital
G - Governance system to improve corporate value

1

Positioning of the new medium-term management plan

Profitability declines due to rapid changes in thebusiness environment

Current medium-term
management plan
Strengthen the business management base andcollaboration between business segments
including services for creation of new businesses

Achievement of ROE 5.5% at
FYE2027 March
New medium-term
management plan

Continuously improve corporate value andaiming to reach PBR1x level at an early
stage

Achievement of ROE8.0% at
FYE2030 March

Growth acceleration stage

To a new growing stage

Maximizing corporate value
and shareholder value

Strengthening profitability

Improving profitability through new businessstrategies

Improve management efficiency

Optimization of balance sheet through new capital
policyRealization of new businessSupporting the new medium-term management
plan [E・S・G]

FY2021~FY2023

FY2024~FY2026

FY2027~FY2029

Transforming into a more “lean” corporate structure

Business recovery period

Growth acceleration period2Progress of the current medium-term management plan andOur management challenges

3

Progress of the current medium-term management plan ① Overview
Summary of the current medium-term management plan
While the sales revenue target of 270 billion yen for the fiscal year ending March 2025 has been achieved, it is still behind the operating profit target of 13.5
billion yen.
Main factors⚫ Impact of COVID-19 on supply chains and global business⚫ Production fluctuation due to tight supply of semiconductor parts⚫ Emerging geopolitical risks triggered by Russia's invasion of Ukraine

Sales revenue
FYE2025, MarchOperating profit

Target: 270 billion yen → Forecast: 300 billion yen
Earlyachievement(Billion yen)

26.32

24.63

27.57
21.69

Target: 13.5 billion yen → Forecast: 6.4 billion yen
Behind(Billion yen)

14.2

27.00

13.5

22.36
7.7

Target

20/3

21/3

22/3

23/3

24/3

25/3

FYE2019
term

FYE2020
term

FYE2021
term

FYE2022
term

FYE2023
term

FYE2024
term

FYE2025
term

3.9

2.8

Target19/3

6.4

Forecast

Forecast

Achievements

FYE

30.00

FYE2025, March

20/3

21/3

22/3

23/3

24/3

25/3

FYE2019
term FYE2020
term

FYE2021
term

FYE2022
term

FYE2023
term

FYE2024 term
FYE2025
term

-4.2
FYE

19/3

Progress of the current medium-term management plan and our management challenges

4

Progress of the current medium-term management plan ② Summary of achievements and issues

Achievement
Expansion of HUD business
Nomination for integrated cockpit and sales expansion

Sales expansion

Sustainability

Sales decrease
HUD sales
26.9 billion yen (FYE21/3) → 56.0 billion yen (FYE24/3) Although the market has returned to thelevel before COVI-19 pandemic, new risks
have surfaced, such as decreasing sales ofNominated for integrated cockpit business forJapanese cars in China.
new model in collaboration with Alps Alpine
Increase in parts costs

Expansion of EMS/parts processing businessProfitimprovement

IssuesAcquisition of Kyoei Engineering Co., Ltd.

Business development of new products and services

Expansion of BPO business (IT)Optimization of product selling prices

Selling price reflecting the rising of parts,
materials and logistics costs

Reduction of fixed cost

Reducing SG&A expenses

Promoting local production, in-houseproduction, and local procurement tominimize production and logistics costs

Promotion of local procurement:
42% (FYE21/3) → 53% (FYE24/3)
Reduction of logistics costs (to the level before COVID-19
pandemic):
11.8 billion yen (FYE22/3) → 5 billion yen (2FYE4/3)

Towards the realization of asustainable society

Carbon neutral promotion (target setting)Publication of integrated report

Although supply has stabilized, prices forsome parts are still rising, which has
negative impacts on HUD sales expansion
and business development of new products
and services.

Strengthening of HUD

See pages 13-14.
New customers/
New product development

See page 17

European business

The severe business environment inEurope and increased costs due to
COVID-19 have caused a large deficit▶ Aiming to become profitable by
optimizing prices, reorganizing mass
production costs and production
bases, etc.

Executing scenarios that link environmental
initiatives and business value creation
processes

European businessSee pages 15-16.

“E・S・G” supports the new mediumterm management plan

See pages 20-25.

Progress of the current medium-term management plan and our management challenges

5Progress of the current medium-term management plan ③ Current market evaluation/return of capital
To improve our company's market evaluation, the challenge is to secure capital profitability that exceeds the cost of shareholders' equity.

◼ History of ROE (from FYE2014 to FYE2023)
11.6%

10.0%
5.8%

14/3期
FYE2014

15/3期
FYE2015

16/3期
FYE2016

6.0%

17/3期
FYE2017

6.8%

6.6%

18/3期
FYE2018

19/3期
FYE2019

0.64

0.59

Equity cost

-0.2%

0.3%

20/3期
FYE2020

21/3期
FYE2021

-2.8%

0.7%

22/3期
FYE2022

23/3期
FYE2023

0.29

0.27

◼ History of PBR (from FYE2014 to FYE2023)
0.78

0.88

0.77

0.86

0.37

14/3期
FYE2014

15/3期
FYE2015

16/3期
FYE2016

17/3期
FYE2017

18/3期
FYE2018

0.45

19/3期
20/3期
21/3期
22/3期
23/3期
FYE2019
FYE2020
FYE2021
FYE2022
FYE2023
Progress status of the current medium-term management plan and our management challenges 6

Summary

1

2Target of the current plan

Current situation

Consolidated
revenue

Fiscal year ending March 2025

270 billion yen

Consolidated
operating profit

13.5 billion yen

Lower profitability due to rapid changes in the business environment
Tight parts supply due to the impact of COVID-19. Rise in logistics costs and material procurement
costs. Although the consolidated sales revenue target was achieved early, the operating profit
target is significantly behind. Profitability declines.

Formulation of new medium-term management plan 2026

3

Developing a new plan Increase profits by expanding HUD business in the post-COVID-19 market.

Introduction of balance sheet management to improve capital profitability.

Progress status of the current medium-term management plan and our management challenges 7

New Medium-Term Management Plan 2026

8

Management philosophy/corporate culture/management vision

Management
philosophy
To contribute to the prosperity ofsociety by providing high-value
products and services from ourcustomer’s point of view.

Corporate
cultureEssentials, Reality, Simplicity
and Speed
Create a corporate culture that
embodies the aspects of “Essentials,
Reality, Simplicity and Speed” andbecome a “strong and robust
company”

Management
VisionTo be a total solution company thatprovides safety, security andexcitement to people around theworld through technology.

New medium-term management plan 2026

9

Overview of the new medium-term management plan ① Target of sales and operating profit
Targets❚ This Medium-term management plan is positioned as a period to focus on recovering our business

Period of this medium-term
management plan
(Performance recovery period)

performance from the COVID-19 pandemic, and we will implement various measures.
❚ Revenue and operating income are expected to improve as a result of implementing various business
Operating profit of 16.5 billion yen.
❚ The period after this medium-term management plan is positioned as a growth acceleration stage,
and the targets for the fiscal year ending March 2030 are: Sales revenue of 400 billion yen and400(billion yen)
400 0

350 0

sales revenue

strategies. Targets for the fiscal year ending March 2027 are: Sales revenue of 330 billion yen and

Growth acceleration stage

500

320

310

300

330

450

400

300 0

Operating profit of 28 billion yen.

FYE2024

Sales revenue

Medium-term management plan period

FYE2025

FYE2026

FYE2027

28.0

250 0

FYE2030

300 billion yen 310 billion yen 320 billion yen 330 billion yen 400 billion yen

200 0

150 0

Operating profit

Forecast

350

100 0

300

250

12.8

16.5

200

150

9.3

6.4

Operating profit 6.4 billion yen 9.3 billion yen 12.8 billion yen 16.5 billion yen 28 billion yen

100

500

50

Operating profit
rate

0

2.1%

3.0%

4.0%

5.0%

7.0%

0

forecast

24/3

25/3

26/3

27/3

28/3

FYE2024 FYE2025
term
term

FYE2026
term

FYE2027 FYE2028
term
term

29/3

30/3

FYE2029 FYE2030
term
term

New medium-term management plan 2026

10

Overview of the new medium-term management plan ② Improving ROE❚ With the aim of continuously improving corporate value and early achievement of PBR level of 1x, we will adopt a new ROE target as a KPI.
❚ In view of the negative business performance due to the COVID-19 pandemic, the ROE target for the final period of this plan (FYE2027) is

set at 5.5% (positioned as a milestone towards achieving ROE 8.0% in FYE2030.)
Mid-term goal
FYE 2027

Business
Strategy
ESG,
Other
measures

Achievement of ROE5.5%

ROE 5.5%
P.12-17

Capital
PolicyContinuing
growth ofcorporate
value
0.7%

FYE2023 FYE2024 FYE2025

P.20-25

ROE 8.0%*ROE target for FYE2030 is 8.0%

Earlyachievement of
PBR1x

P.18-19

ResultFYE2026

FYE2027

FYE2028 FYE2029 FYE2030

Forecast Period of this medium-term management plan

New medium-term management plan 2026

11

Business strategy: overall policy
Billion yen
sales revenue

Overall policy

400 billion yen

400

400 0

500

320

350 0

❶ Strengthening HUD business

310

300

330

450

400

① Strengthening HUD business③New customers/ New productdevelopment

Operating Profit

300 0

28.0
350

❷ European business

Revenue target for FYE2030

Billion yen

250 0Operating profit target for FYE2030

300

200 0

250

❸ New customers/

16.5

150 0

New product development

200

12.8

150

9.3

100 0

28 billion yen
Operating profit rate

7.0%

100

6.4
50

① Strengthening HUD business

0②European business

500

0forecast

24/3

25/3

26/3

27/3

28/3

29/3

30/3

FYE2024 FYE2025
term
term

FYE2026
term

FYE2027
term

FYE2028
term

FYE2029
term

FYE2030
term③New customers / New
products development
New medium-term management plan 2026

12

Business Strategy ①: Strengthening HUD – Business Environment –⚫ Environment and strengths of HUD business

Forecasting the market size of HUD-related businesses
The HUD market is expected to grow rapidly , and there are high expectations for further profitability in the future.
(Billion yen)

Strengths of our HUD business

4,000
400

352.6

⚫ In-house production system from optical design, production technology, anddesign to manufacturing⚫ Possible to select technologies that can be used as HUD (AR-HUD mass
production)⚫ High display quality (No distortion, no double-image)⚫ Extensive development and mass production experience and customer/supplierinformation based on this background

3,000
300

200
2,000

Global head-up display (HUD) share*
1,000
100

30%

0
2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

(Source) Techno System Research Co., Ltd. “Head-Up Display Market Research 2022”

2030

No. 1 in the world*Quoted from multiple sources

New medium-term management plan 2026

13

Business strategy ①: Strengthening HUD – Strengthening sales –⚫ To strengthening sales of the HUD businessOur main business, HUD business, aims to achieve sales of 100 billion yen in FYE March 2030.
Initiatives to strengthen sales of HUD business

HUD sales target
Period of this medium-term
management plan
(Performance recovery period)

Billion yen

Investing approximately 15 billion to 20 billion yen as growth investment
Growth acceleration
stage

1,000
100

In parallel with the main target of medium- and large-sized vehicles, we will focus on
expanding sales for light and small vehicles. Strengthening sales to customers withwhom we have not previously had HUD businesses.

Plans to further popularize HUD

800
80

We have completed prototype of “after-market combiner HUD that can be
attached on". Scheduled to judge whether mass production is possible

60
600

Development of new technology and new products➊ Improving HUD product value

400
40• Development of technology that displays information from inside and
•

200
20

0

Expand target of HUD-equipped vehicle models

outside of the vehicle in a layered and seamless way.
Providing optimal information tailored to the scene➋ Evolution of display technology• New light source (PGU) development
forecast

24/3
25/3
FYE2024
FYE2025
term
term

26/3
FYE2026
term

27/3
28/3
29/3
30/3
FYE2027 term
FYE2028 term
FYE2029 term
FYE2030
term❸ Development of smaller and lighter technology
New medium-term management plan 2026

14

Business Strategy ②: European Business – Overview –• Restructuring European business

Urgent need to achieve profitability by reforming the profit structure.
Operating profit by region FYE2023

Billion yen)

5

4
3

3.8
2.9

2

0

-2
-3
-4

Japan

America

EuropeEuropeThe operating profit
forecast of the European
business is-5 billion yen in FYE2023

Asia

automotive technology, is essential for gaining knowledge
necessary for R&D in HUD development.
⚫ We have grown as a leading company in the HUD business by
quickly sensing trends in the automobile industry.

Europeanadvanced
technology
trend

-5
-6

An important position responsible for the R&D
function of the HUD business⚫ Connection with customers in Europe, an advanced region in

1.2

1

-1

Overview of European business

Advanced
technology
softwaredevelopment

Designdevelopment
Commercializati
onExpandingnomination of
HUD business-5

New medium-term management plan 2026

15

Business Strategy ②: European Business – Revenue and Expenditure Improvement Plan –Aim to bring European business into a profitable business implementing profit improvement measures
Profit improvement
effectBy cost reduction
Approx. 1.7
billion yen

Profitimprovement
By quantity
Approx. 5.2
billion yen

Current issues

Policy of initiatives

Current situation

High labor costs in
Europe.
Companies in several
companies.

⚫ Reorganization of Europe group companies.
Closing of UK office, downsizing (Netherlands),
human resource shift to Poland▶ Relocation of UK office to factory, downsizing of
Netherlands office, reduction of labor costs in each
officeStart of human resource shift to Poland⚫ Reducing air freight costs by shifting
Rising logistics costs.
logistics to sea transportation

Lower sales volume▶ Shifting from air to sea shipment is almost
completed.
▶ Return to logistics cost level equivalent to preCOVID-19 level⚫ Increase in sales volume by nominations ▶Preparing for launching mass production
for new models
launch in this fiscal year.

Approx. 1.1
billion yen

By price
Approx. 2.4
billion yen⚫ Cost improvement for unprofitable
Profitability per productmodelsRising raw material
costs▶Continuing cost improvement activities formodels currently in mass production and underdevelopment.

⚫ Optimization of selling prices due to rising ▶Price negotiations with customers at eachraw material costs
fiscal year.

(Note) Figures for profit improvement are estimates of profits that will improve through theimplementation of various measures.

New medium-term management plan 2026

16

Business Strategy ③: New Customers/ New Product Development

New customer development

New product development

Aiming for sales revenue of 400 billion yen (including 100 billion yen in
the HUD business) in the FYE 2030 March by actively cultivating newcustomers

Achieve sustainable growth by allocating profits from existing
businesses to developing new products
HUD

Billion Yen

Slope-HUD
A HUD that incorporates technology that expresses depth like 3D. Navigation

1,000
100

arrows, safety information such as the presence of people/vehicles, etc. can be

HUD sales target
77.1

800
80
600
60

displayed intuitively to give a sense of depth. The display method can bechanged depending on the information.

68.3
55.7

After-market HUD

58.7

40

400

Aiming to receive nomination
during the medium-term plan
periodThis is a HUD that can be attached to vehicle after-market. It provides our company's

Nominated bymajor customer A
and B.

HUD for light cars/small cars

display quality at a low price.This HUD can directly appeal to drivers who are the final
consumers, and also contributes to improving the popularity of HUD.

Currently developing a HUD for light/small cars. The development of elemental
technology specialized for light vehicles/small vehicles eliminates the need for special

processing of vehicles, resulting in no increase in costs. It will contribute to the200
20

Already nominatedexpansion of HUD application to light vehicles/small cars.

Automotive Meter
0

Windshield Display (WSD)
24/3
25/3
term
term
FYE2024
FYE2025

26/3
term
FYE2026

27/3
term
FYE2027

28/3
term
FYE2028

29/3
30/3
term
term
FYE2029
FYE2030

WSD

The LCD is embedded in the bottom of the windshield. It displays speed and warnings
with better visibility than conventional meters. Combined with a HUD, it suppresses

HUD

blurriness and creates an even safer driving environment.

New medium-term management plan 2026

17

Capital policy ①: Shareholder return policy

Established a new shareholder return policy with a medium-term ROE target of 8.0%

Shareholder payout
policyShareholder return

Current

New medium-term management plan

Continue stable dividends

Total payout ratio 80%(FYE2025 ~ FYE2027)

Approx. 8.5 billion yen(Cumulative total for previous mediumterm plan period)⚫ In parallel to strengthening
our financial structure andmanagement foundation, we
Shareholder return
comprehensively take into
account the business
policyperformance and dividend
payout ratio for each fiscal
year.

Approximately 20 billion to 25 billion yen(estimated)⚫ Comprehensively consider capital efficiency, financial
structure, and business performance for each fiscal year inorder to continuously improve corporate value and for early
achievement of PBR 1x.
⚫ Dividend amount will continue to increase in line withbusiness recovery through improved operating profit.
⚫ Payout to shareholders are achieved through dividends andacquisition of treasury stock to satisfy the defined total payout
ratio.
New medium-term management plan 2026

18

Capital policy ②: Cash generation and allocation
cash inflow
Flexibly utilize interest-bearing debt
based on investment opportunities, etc.

Debt

Generate FCF by improving operating
profit rate and optimizing inventory
levels

Already reduced cash on hand by canceling
fixed-deposits and using them to repay
interest-bearing debt.
FYE2023

Cash on hand

Cancellation of fixeddeposits
and interest-bearing debt
has been repaid

Approximately 40
billion yen

cash outflow
Investment for
growthCapitalexpenditure

Operating CF
60 billion yen to
70 billion yen

35 billion yen to
40 billion yen
Return toshareholder

20 billion yen to
25 billion yen
Cash on hand

Cash on handworking capitalworking capital

Utilize leverage and allocate funds incapital investment and growthinvestment. Build the foundation forimproving performance over the short
to medium- to long-term (including
investment to HUD-related businessesof approx. 15 billion to 20 billion yen.)

To achieve ROE of 5.5% at FYE2027,
implement shareholder returns witha total payout ratio of 80% (20 billion
yen to 25 billion yen by value.).

Allocate sufficient funds for capital
investment, growth investment, andshareholder returns to control theaccumulation of cash on hand.

(estimated)

FYE2024
Cash on hand

New medium-term management plan 2026

19

[E, S, G] supporting the new medium-term management plan 2026

20

Nippon Seiki's value creation process
Recognize social and environmental issues and create values.

Capital of Nippon Seiki

Social and economic
environment◼ Geopolitical changes in political

economy◼

Advance of the automobile industry◼

Increase in new areas of CASE support◼

Transforming car owning style◼

Prolonging era of ow interest rate◼

Expectations for reforming corporate
governance

A wide range of advanced
expertise of technologies

Excellent and solid customer
base and global network

Ability to respond to customer needs
through advanced manufacturing technology
base

New medium-term management plan

Bringing together diverse functions
through intra-group collaboration

VISION

Continuously improve corporate value andaiming to reach PBR1x level at an early stage

Corporate culture that values challenge, change,
diversity, health, and job satisfaction

To be a total solution company that provides

Business strategy

Customer-oriented proposal activities andcontinuous improvement of professional
services

Having sufficient equity capital in both quality
and quantity
Secured sound financial foundation

・Strengthening HUD・European business・New customer/new product development

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

b

Formulation of new medium-term management plan
Capital strategy
・Through balance sheet management

Materiality for value creation Materiality of business foundation
Challenges from Customers◼ Increasing safety requirements◼ Expectations for high value-

added products◼ Stable supply of products◼ Building sustainable supply
chain◼ Actions to climate change suchas carbon neutral⚫

Contributing to prevent traffic accident
through the promotion of HUD⚫

Energy saving/recycling⚫

Sustainable supply chain⚫

Development and providing carbon
neutral products⚫

Ensuring product quality⚫

Responding to and contributing toadvancement of customer’s technology⚫

Human resource development⚫

Diversity⚫

Health management⚫

Compliance⚫

Information security management⚫
⚫

Proposing high-performance material
solutions
New product development toaccommodate new lifestyles

improve capital profitability
・Achieve total return ratio of 80%

・Flexible use of interest-bearing debt

ESG/other measures

・Expanding businesses solving social issues
・Contributing to decarbonization and resource
recycling
・Strengthening corporate governance

KPI

FYE2027 (target)

Sales revenue

330 billion yen

Operatingprofit16.5 billion yen

ROE
Shareholder
return5.5%
Approx. 20 billion yen
to 25 billion yen[E, S, G] supporting the new medium-term management plan 2026

21Social issues to be solved through business

01

Automotive parts business

02

Providing a safe and secure car life
Energy saving by downsizing and weight reduction

E

Consumer parts business

03

Resin compound business

Innovation in technology baseRealization of circular economy

Energy saving by downsizing and weight reduction

Environmentally friendly material solutions

E

Use of recycled materials

Use of recycled materials

Building recycling businesses that respond to climate change

E

Green procurement,
responsible mineral procurement, BCP

Green procurement,
responsible mineral procurement, BCP

Energy saving and use of recycled materials

S

Contribution to prevent traffic accident by spread of HUD

New product development in response to social and lifestyle changes

Responding to and contributing toadvancement of customers’ technology

S

Reducing the drivers’ load by HMI evolution

Manufacturing of high quality, high performance, and high reliability

Obtain management system certification

S

Providing the joy of driving

Proposing and providing comfortable living scenes

Providing environmentally friendly material solutions

04

Car sales business

05

Service businessRealizing a well-being car life

Realizing a well-being life and creating effective time

Contributing to local communities through community-based one-stop car life services

Support for digital transformation (DX) of customers and society

Proposing various mobility sales and opportunities in response to social changes

Improving social efficiency through business process outsourcing (BPO)[E, S, G] supporting the new medium-term management plan 2026

22

E - Contribution to decarbonization and resource circulation

Setting a carbon neutral goal
Achieve 50% reduction in 2030. Achieve carbon neutral in 2050.
Energy usage increases in parallel to company’s growth .
Expand usage of renewal energy.

Measures towards carbon neutrality➊ Energy saving: Reduce energy consumption

3 themes for carbon neutral
・Power saving
・Introduce energy saving facilities at renewing machines
Save energy ・Reduce operating hours by improving productivity• "Industrial Ultrasonic Camera"→ Visualization of compressor air leaks• “Molding machine cylinder heat insulation cover"→ Reduce electricity usage

・Solar electric generator

cover

Renewable energy

・Purchase renewal energy
leakage

Purchase

Ultrasonic CamerayryrApprox. 9% energy saving

Approx. 27% energy saving❷ Renewable energy: Introducing solar power generator, etc.

yr

• Solar panels are installed in laboratory center and2019 (Base line)

2030 (50% less)

NS Technical Center

2050 (Carbon neutral)

Improvement of corporate value
EnergyRenewable energy

9th environmental objectives
targets (2023-2025)

CO2 emissions reduction target(Scope1・2)

Mid-term
2030

50% reduction compared to 2019

Long-term
2050
carbon neutral

Initiatives

Introduction of high-efficiency equipment, reduction of energy loss, improvement of work efficiency

Renewable energy

Introduction of solar power generation, purchase of renewable energy electricity and gas

Certificate/credit purchase

NSHQ Lab.
centerand Kyoei Engineering

Energy saving

Transition to non-fossil energy• Solar panels will be installed to new NSS warehouse

Promoting electrification of gas and heavy oil facilities

Carbon offset (non-fossil certificate, credit purchase, etc.)❸ Renewable energy: Purchase electricity and gas derived fromrenewable energy• Purchase: Offset with non-fossil certificates, etc.

➍ CN products: New product development reducing GHG emissions• Developing carbon neutral meter using sustainable materials• Promote energy savings by making products smaller and lighter[E, S, G] supporting the new medium-term management plan 2026

23

S - Investing in global quality and human capital
Building a quality management system based on global standards⚫ To provide customers “safety and security”, and to further increase reliability in product safety and quality in the market, we are currently working on building a globally quality management system.
⚫ It will improve competitiveness by satisfying the high demands of overseas markets including Europe.
2017

2023~

2020

Head
OfficeCompliant with IATF16949

Group
Companies

Completed transition to ISO9001 and IATF169494

All Nippon Seiki
Group

Building a quality management system based on global standards

Investing in human capital as the foundation for sustainable growth
Global human resources trainings
Language education at language training centers

Strengthening employees’ language skills, which is thebase for expanding our business globally.
⚫Offering English and Chinese from beginners toadvanced.
⚫All employees can participate in trainings during theirworking hours.
⚫One-month intensive English training for new
graduate employees

Management leader trainings

Trainings per job position and category.
Active recruitment of career personnel
Building self-directed personnels who can proactively
Managements and on-sites cooperate to quickly respondthink and act on their own, and who can respond quickly to the needs of human resources.
to changes⚫ Achieved recruitments far exceeding the original targets.
⚫ Open more than 20 education and training programs per
year per job position and category.

Encourage ideas for new business creation
Encouraging employees to create business ideas to build
Building global and multifaceted perspectives throughthe group's ability to develop new products andcareer development across the boundaries of locations and services.
departments
Building multi-perspectives through job rotation

model
1

model
2

Engineer
Designdevelopment

To overseas
group
Nippon Seiki
company group global

development

Engineer Temporary Work closely
Design transferredwithcustomers
development

Business idea contest

Returnin Career as theg todepartment headJapanof purchasing,
sales
departments
Returning toNipponTo overseas
Seiki
group company.
Skills improved

Strategic recruitment and human resourcing

Nippon Seiki group has started a
programming school for children
based on an employee's idea
FY2023 Idea Contest⚫ Systematize communication regarding training and careerdevelopment after joining the company to support retention
and success

Diversity management
Diversity in recruitment and training
Recognizing that the diversity of human resources is thesource of creativity, we implement fair recruitment andpromotion regardless of nationality or gender⚫ Goal of ratio of women to number of employments: 10% ormore. In FY2022, we achieved 18.8% .
⚫ Foreign employees are hired every year. We provide themwith daily life support such as visas, housing arrangements,
and Japanese lessons.

Career design support
Developing strong human resources that enable each
Supporting diverse work styles
employee to pursue a positive career and at the same time
Supporting the balance between work and family life,
realize business strategies.
realizing flexible work styles to strengthening acquiring
Interviews conducted by a career counselor
human resources
In-house job opening system that allows employees to take on new
challenges.

Employee engagement
Measure employee’s working engagement levels once a
year and strive for continuous improvement
From FY2024, we will review the content and implementation
method of employee engagement surveys and strengthen theidentification of issues and verification of the effectiveness of
initiatives.

▲Selected as a “Happy Partner Company” in Niigata Prefecture[E, S, G] supporting the new medium-term management plan 2026

24

G - Governance system to improve corporate value

IT, DX

Human resources, humanresources development

Global experience

ESG,
sustainability

Corporate governanceAccounting, finance, taxbusiness

Marketing, sales

Research, development,
designManufacturing, productionengineering

Corporate management

Board of Directors⚫ Independence: Ratio of Independent outside director is 36.4%⚫ Diversity: 1 female director

Board of Directors

Organization

chairperson
Structure

Koichi
Sato
KeiichiNaganoMasatoshi
Azuma
Yuji
Osaki
Masahiro
Yoshihara
Kazuhiko
Murayama
Tatsuya
Nagai
Etsuo
Saiki
Eiko
Tomiyama
KiyoshiSuzukiToshihiko
EnomotoInternal◎◎

Internal〇◎

Internal〇◎

Internal〇◎

Internal◎◎

Internal

◎

〇

〇

〇

◎

Audit Committee

OutsideAudit Committee

OutsideAudit Committee

OutsideAudit Committee◎

OutsideAudit Committee

◎

〇

◎

〇

◎

〇

〇

◎

〇

〇

〇

◎
◎

〇

Internal

◎

〇

〇

◎

〇

◎

〇

11 members (7 internal, 4 outside)〇〇

2021-2023:◎◼ Establishment of nomination committee and remuneration committee (outside director isappointed as the chairperson of each committee)〇◎◼ Integrated Report 2021/2022/2023 and Environmental Report 2023 are released

〇

◎

◎

⚫ Considering the majority of outside director ratios⚫ Board of Directors Policy emphasizing diversity⚫ Review of cross-shareholding policy⚫ Revision of performance-based remuneration〇 Items already implemented〇◎◎

Topics to be discussed◎*Skill items for which the person has extensive knowledge and expertise are marked with a ◎.
*Skill items for which the person is recognized to have knowledge and expertise based on work experience andcurrent specialized knowledge are marked with a 〇.

◼ Reduced the number of internal directors by one and increased the ratio of outside directors
to 36.4%
2018-2020◼ Improving the diversity of the board of directors (appointment of a female director)◼ Transitioned to a company with an audit and supervisory committee◼ Reduce the number of directors in the articles of incorporation and increase the ratio ofoutside directors to 1/3 or more

◼ Environmental Report 2020 released[E, S, G] supporting the new medium-term management plan 2026

25

Please note that the forward-looking statements are forecasts based on currently available information andinclude risks and uncertainties. Therefore, please refrain from making investment decisions based solely onthese business performance forecasts. Please be aware that actual results may differ significantly fromthese forecasts due to various important factors. Important factors that affect actual results include politics
and economic conditions surrounding the company's business areas, and exchange rates of the yen,including the U.S. dollar.