（Issue code: Tokyo Stock Exchange Prime 5957）

Results Briefing 2Q for the
fiscal year ending
December 2024
■ Explained by
Makoto Araga, President

Contents
1.

2.

Summary of Financial Results 2Q
for the Fiscal Year Ending Dec
31, 2024

3.

Forecast for the Fiscal YearEnding Dec 31, 2024

Summary of Financial Results

Forecast for the Fiscal YearEnding Dec 31, 2024

Overview of Results by Segment

Shareholder Returns

Progress of the Medium-TermBusiness plan

4.

Appendix

Progress of the Medium-term
Business plan “Mission G-second”

Actions to achieve managementwith a focus on cost of capital andstock price

Growth #1 Business Expansion Strategy

Balance Sheet

Growth #2 Environmental Strategy

Cash Flow Statement

Growth #3 Human Resource Strategy

Capital Expenditures,
Depreciation and R&D Expenses

Growth #4 Financial Strategy©2024 NITTOSEIKO CO., LTD.

Management Approach1１． Summary of Financial Results
2Q for the Fiscal Year Ended
Dec 31, 2024

©2024 NITTOSEIKO CO., LTD.

2

Summary of Financial Results
2023/122Q

Unit: Million yen / %Amount2024/12
2Q
Ratio
(%)

Amount

YoY
Ratio
(%)

Amountchange% Change

Net sales

22,447100.0

22,394

100.0

△ 52

△ 0.2

Gross profit

5,117

22.8

5,358

23.9

241

4.7

Selling, general and administrative expenses

3,818

17.0

3,864

17.3

45

1.2

Operating income

1,298

5.8

1,494

6.7

195

15.1

Ordinary income

1,476

6.6

1,610

7.2

133

9.0

Net income for current period before income
taxes

1,494

6.7

1,597

7.1

102

6.8

833

3.7

1,007

4.5

173

20.8

22.57

-

27.56

-

-

-

Net income attributed to shareholders of theparent company

Net income per share (yen)Main points
Net Sales

Operating
IncomeOverseas⚫

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

⚫

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

⚫

Overseas net sales increased due to firm sales of fastener products for the automobile industry in China, as well as
strong sales of analytical instruments at the European base.
3

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

MillionYen▌Change in net sales by segment
MillionYen

Business
Expansion

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

Change in
Sales

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

Price PassthroughPrice pass-through of screw fastening
machine-related products has progressed.
Negotiations continue for other items.
4Summary of Financial Results - Operating Income▌ Analysis of Operating Income

MillionYen▌Change in Operating Income by segment
MillionYen

Factors
Affecting Cost
Ratio Variance

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

SG&A Variables

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

Business
Expansion

Contribution from the establishment of
Nitto Seiko Analytech Europe GmbH.
5

Overview of Results by Segment - Fastener Segment
8,280 8,285 8,309

2Q

MillionYen

Net sales

Million
Yen

3Q

4Q

2023

7,716

1Q

Operating income
485

8,321
389

2Q

340

2Q

3Q

328

4Q

1Q

2023

2024

362

2Q

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

2024

Net Sales by Region
Unit: Mil yen/ %Net Sales
Automobile
Housing andconstruction
Electrical andelectronic parts
Household goods
IT and digitalequipment
Precisionequipment

2023/122024/122Q

2Q

AmountAmountYoY
Amount% Change

16,26016,038

△ 222

△ 1.4

6,146

6,356

209

3.4

3,690

3,525

△ 165

△ 4.5

2,386

2,324

△ 62

△ 2.6

1,243

882

△ 360

△ 29.0

626

776

149

23.8

535

583

48

9.0

Medical

142

153

11

7.7

Others

1,488

1,436

△ 52

△ 3.5

Operating Income

800

690

△ 109

△ 13.72024/2Q
East Asia,
Japan,

Overseas,

70.7%

29.3%

10.6%

Southeast Asia,

North America,

15.2%

3.4%
Others, 0.1%

2023/2Q
East Asia,
Japan,
72.6%

8.8%

Overseas,
27.4%

Southeast Asia,

North America,
3.1%

15.5%

Others, 0.1%

6

Overview of Results by Segment – Assembly Machine Segment
MillionYen

Net sales

MillionYen
1,860

Operating income

1,817
385
1,173

1,329 1,320

240

224

154
100

2Q

3Q

4Q

2023

1Q

2Q

2Q

3Q

2024

4Q

1Q

2023

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

2Q

2024

Net Sales by Region
Unit: Mil yen/ %Net Sales
Automobile2023/122024/122Q

2Q

AmountAmount

3,453
1,825

YoY

3,138
1,477

Amount

△ 314
△ 348

2024/2Q% Change△ 19.1

Electrical andelectronic parts

711

499

△ 211

△ 29.7

Energy sector

99

135

36

36.3

206

110

△ 95

△ 46.0

139

83

△ 55

△ 39.5

103

83

△ 20

△ 19.2

Household goods

10

61

50

488.9

Others

356

686

329

92.2

Operating Income

481

539

57

12.0

AmusementmachineIT and digitalequipment
Housing andconstruction

North America,

△ 9.1

11.9%
Japan,
71.9%

Southeast

Overseas,

Asia, 5.6%

28.1%
East Asia,

Europe,9.3%

0.8%
Others, 0.6%2023/2Q
North America,
10.0%
Japan,

Overseas,

70.7%

29.3%

Southeast
Asia, 4.9%
Europe,East Asia,
13.8%

0.3%
Others, 0.3%

7Overview of Results by Segment – Control System Segment
MillionYen

Net sales

MillionYen

1,885 1,680
1,392 1,309

Operating income
215

205

1,531
122
39

2Q

3Q

4Q

2023

Unit: Mil yen/ %Net Sales
Energy sector

1Q

2Q

△6
3Q

2Q

2024

4Q

1Q

2023

2023/122024/122Q

2Q

AmountAmount2Q

2024• Analytical instruments performed well, mainly for energy-related
applications. Sales at the new base in Europe was also strong, resulting in
YoY increases in both sales and profit.
• In addition to new product development, the Company will focus on costvisualization, in-house production of machined parts, efficient assembly
production, and sales price revisions.

Net Sales by Region

2024/2Q

YoY
AmountOutlookNorth America,

2,720

3,212

491

18.1

439

682

243

55.4

Chemical andpharmaceuticals

632

637

5

0.8

Environment

106

348

242

228.7

Automobile

143

228

84

59.0

Electrical andelectronic parts

170

188

17

10.6

Ship building

164

178

14

8.9

11.1%
Japan, 60.9%

256

162

△ 93

△ 36.5

Medical

67

60

△6

△ 9.9

Food

31

60

28

89.0

Others

708

663

△ 45

△ 6.4

Operating Income

69

328

258

369.6

Overseas,39.1%

Southeast Asia,
East Asia,

3.8%

12.7%
Others, 4.2%
North America,

2023/2Q

7.0%
Southeast Asia,
Europe,Japan, 66.1%

Housing andconstruction

7.3%

Europe,% Change

Overseas,

3.6%

8.0%
Others,33.9%
East Asia,

6.2%

9.2%

8

２． Progress of the Medium-TermBusiness plan

©2024 NITTOSEIKO CO., LTD.

9

Progress of the Medium-term Business plan “Mission G-second”
Net Sales(Million Yen)

NITTOSEIKO Mission “G”

Mission G-second
60,00060,00040,51840,000Operating
Income(Million Yen)

34,85744,021

48,20044,74420,00015,00032,90410,00020,000

3,249

2,596

1,303

2,931

5,160

3,300

2,614

5,000

0

0
2019

Growth #1

2020

Business Expansion Strategy
Forecast FY2024

Target FY2025

48.2 B yen
3.3 B yen

60 B yen
5.16 B yen

Net Sales
Operating
IncomeGrowth #3

Human Resource Strategy

Result FY2024 2Q

Target FY2025

+3.1％

+24％
3.8P or more

Labor productivity（Compared to 2022）

Engagementscore（ Measured Nov-Dec every year ）

-

©2024

2021

NITTOSEIKO CO., LTD.

2022

2023

2024
(Forecast)

Growth #2
CO₂ emissions（Compared to 2019）

Waste（Compared to 2019）2025(Plan)

Environmental Strategy

Result FY2024 2Q

Target FY2025▲16.4％▲12％▲25.5％▲5％

Growth #4

Financial Strategy

Result FY2024 2Q

Target FY2025

ROIC

6.0％

8％ or more

ROE

6.0％

9％ or more
10▌Growth#1

Business Expansion Strategy

Background of Growth Target Selection
Approach markets that have potential for growth in the future
Approach markets with low sales ratios and room for growth
Expand sales of high value-added products based on Group technologies
CASE-related Business: Product development and sales expansion for growth business in the mainstay automobile industry

Fastener
Business

Non-Japanese Company: Expand sales to non-Japanese companies with particularly low sales ratios in overseas sales
ASSY Products: Propose high value-added products utilizing the Group's technology
Industry Expansion: Expand sales to a wide range of industries to stabilize business
CASE-related Business: Product development and sales expansion for growth business in the mainstay automobile industry

Assembly
MachineBusiness

Non-Japanese Company: Expand sales to non-Japanese companies with particularly low sales ratios in overseas sales
Overseas Sales: Increase orders, especially in Europe, using existing base as a hub
Expansion of Business Area: Expand sales of products with reduced environmental impact etc. through various sales networks

Environment-related Business: Entry into carbon neutral businessControl
SystemBusiness©2024

NITTOSEIKO CO., LTD.

Semiconductor and food markets: Expand sales of high-value-added flowmeters (mass, electromagnetic, ultrasonic)
Overseas Geotechnical Investigation Business: Promote penetration in the Thai market by leveraging high domestic market share
EV/LIB Business : Propose inspection equipment and measurement systems to the growing field of automobiles

11▌Growth#1 Progress of Business Expansion Strategy
Growth#1

Business Expansion Strategy
Result FY2022（Million Yen）

Result FY2023

Forecast FY2024

Target FY2025

Net Sales

44,02144,744

48,20060,000Operating Income

2,931

2,614

3,300

5,160

ＣＡＧＲ

Non-Japanesecompany

4.4％

11.0％

ASSY products

ＲＯＳ

ＲＯＳ

＋15.2

＋1.5

FY2022 FY2024

FY2022 FY2025

ＣＡＧＲ

ＣＡＧＲ

2.5％

25.6％

Growth Target

Faster Business

Expand industries

Growth Target

Assembly Machine Business

CASE related
products
Non-Japanesecompany
Overseas sales
Business domain
expansion

ＲＯＳ

ＲＯＳ

▲6.3

＋1.2

Growth TargetＣＡＧＲ

FY2022 FY2024

FY2022 FY2025

Environmental

ＣＡＧＲ

ＣＡＧＲ

Semiconductor &
food

8.2％

11.3％

ＲＯＳ
＋153.4

ＲＯＳ

Overseas groundsurveyEV/LIB related

FY2022 FY2024

Medical Business

FY2022 FY2025

Control System Business

FY2022 FY2024

CASE related
products

・Efforts to bring Mg
implants to market
・Product development,
sales promotion

1.7up

FY2022 FY2025

・Commercialization
・Market launch*CAGR：Average annual Net Sales growth rate from 2022／ROS：Operating Income compared to 2022
©2024

NITTOSEIKO CO., LTD.

12

▌Growth#1 Business Expansion Strategy
Results by GrowthTarget

CASE-related

Progress in 2024

Business

53.7％

Non-Japanese Company

Plan 2025, 7,138

Q2 Result, 3,498

Fastener

Plan 2024, 1,074

Anti-loosening screws “GIZATITE” for resin materials in CASE, “ASFA”
screws with built-in washers, “CP GRIP” screws that prevent
scattering of fastening dust, and “ precision press products”
performed well.

Q2 Result, 801
Developing proposals for hybrid
parts for the automobile market
with Group's press products andfastening parts. Aim to improve
profitability by offering high valueadded products.

"CP GRIP" sales to non-Japanese companies in Korea for electronics
and automobiles were strong (up 60 million yen YoY). In contrast,
construction screw sales were sluggish due to the weak number ofhousing starts in North America.

Progress in 2024

Industry Expansion

32.6％

Plan 2025, 2,698

Q2 Result, 594

Plan 2024, 2,455

Press Products of
Shinwa Seiko

35.0％

Plan 2025, 1,252

Q2 Result, 376

Plan 2024, 6,509

ASSY Products

Progress in 2024

Headed Bolt of
Toyo Atsuzo

Housing & Construction
Industry :Despite domestic demand,
construction starts are
sluggish due to lack of laborin and rising cost of materials
in the industry.

Progress in 2024

35.6％

Plan 2025, 1,892
Plan 2024, 1,668
Flange type anti-loosening bolt “ CUP
BOLT"
Feb launch
New product that eliminates theneed for spring washers and flat
washers. Sales are expanding
mainly in the housing andconstruction industries.

Unit: Mil Yen

Forecast for the second half of 2024

Corresponding Products, Businesses and Initiatives

CASE-related

The need for lighter weight and thinner sheet metal
for EVs is increasing, and inquiries for product linesthat meet these needs are increasing.

In addition to strong demand for “ALUMITITE”, “GIZATITE”, “CPGRIP”, and “Screws with Captive Washers”, inquiries for“JOISTUD” and “AKROSE” were brisk.

Non-JapaneseCompanies

Korean electronics and automotive demand continues

Sales expansion to non-Japanese companies and new markets in
Europe and North America is underway, and new inquiries are
increasing.

ASSY Products

Increasingly complex needs for parts continue for EVs
and other vehicles

Hybrid parts of fastening parts and precision press products.
Currently developing group synergy activities.

Industry
Expansion

Slightly stagnant due to labor shortages and risingmaterial costs in the construction industry

Launched and currently expanding sales of the flange-type antiloosening bolt “ CUP BOLT”.

Gross Target©2024

NITTOSEIKO CO., LTD.

13

Forecast of new car sales and changes in needs of automobile parts
Strategy for the Automotive Industry• Total number of vehicles will increase steadily until 2050.
• The number of gasoline-powered vehicles will increase
until 2035 and then decrease.

Change in number of parts due to switchfrom engine to EV vehicles

Sales Composition ofFastener Business(Motor,battery)

2.7%
5.6%

30000点No longer required

4.6%

Engine parts
25000点• Shift to EVs & Stable sales to existing customers• Focus on business activities to increase overseas sales
ratio whilst keeping an eye on the spread of EVs and FCVs
in emerging countries.

(CASE)
22.9%

Decrease
Drive/transmis
20000点3.3%

sion parts

Drive/transmis
Electronic

Million cars

15000点No internal combustion
engineElectronic vehicle（EV)Diesel HV

2.5
1

Gasoline PHV

partssion parts
Electronic parts

Same

34.7%

Expand products for EVs and
FCVs utilizing motor control andfluid control technologies andfurther enhance electrification
technologies

4
Diesel PHV

2000 items

Decrease

世界のパワートレイン別の新車販売将来予測
Globalnew vehicle sales forecast by power train
Fuel-cell vehicle（FCV)

Add

Suspension/br

Suspension/br

ake parts

ake parts

Body parts

Body parts

Other

Other

parts

parts

Engine vehicles

EV

10000点Same

DieselWith internal combustion
engineGasoline HV

9

7.5

6

Strengthen and systematize
existing products to meetgrowing needs, especially inemerging countries

Gasoline(Driver aids &telecommunication)

26.2%

5000点 Same

0点
Year

2021年

Source：Sumitomo Mitsui Banking Corporation（自動車及び関連産業の将来像／Dec 2017）©2024

NITTOSEIKO CO., LTD.

14

Products that match changing needs of automobile parts
EV

Both

2000 items
Drive/transmis
sion parts

Due to the change from engine to motor, someparts are no longer needed, and others are
newly needed.

Batteries for EV
vehiclesNeed for lightweight fastening parts suitablefor car sensing function and fuel efficiency
improvement.
EV

Motor Control Unit

Newly equipped

EV

Battery/Inverters

Change to lithium-ion
batteryEV

Brake parts

Waterproof products

Suitable for batteries

AKROSEHYBRID

ASFA 🄬WP
Increasing need forwater cooling of
precision parts

Suitable for lightweight
Anti-loosening
screw “GIZATITE”

Screws with Captive
Washer ”ASFA”

Self clinching studbolt ”JOISTUD”

Electronic parts
Suspension/brake parts

Regenerative brakes will
reduce load. Change toresin material

Suitable for electronic circuit boards
Body parts

Both

Both

Body Outer Board

Back Door/Sunroof

Change to aluminum,
carbon fiber reinforced
plastics, and special
resinsChange to resinmaterial

Other parts

Both
EV
©2024

NITTOSEIKO CO., LTD.

Driver Assistance
Information andCommunication

Use of electronic circuitboards and sensors

Screw that prevents
scattering of fastening
dust “CP GRIP”

Screw fastening unit with thrust
FM513VZ
control function→ Higher quality fastening forpreventing assembly errors inprecise and expensive parts

Establish traceability
NX Driver (SD600T Series)→ As parts become more precise andcomplex, traceability is required toensure quality and reliability.

15▌Growth#1 Business Expansion Strategy

Fastener

Reference: Strategies for changing product mix

Expand industries

Make housing and construction the second
pillar of our business after automobiles

Increase proportion of high valueadded products

Looking to expand both ZEH and the renovation market① Increase proportion ② Increase proportion ofof cold headed products micro and original(including for construction) products*ZEH = Net Zero Energy House

2015

2016

…

Kyoei Seisakusyo Co.,
Ltd. becomes a
subsidiary.

2022

KM SEIKO Co., Ltd.
and Pinning Co.,
Ltd. become
subsidiaries.

Screw Breakdown
Micro screws

2023

2015

Others,Screw

Others,Automobile,
50%

2023

Automobile,

38%

38%

39%

Housing andHousing andconstruction,

Cold Headed
Products

GIZATITE
ALUMITITE

construction

12%

, 23%

Housing and construction

Housing and construction

12%

23%

Micro screws

Screw
UP

2,010Mil Yen©2024

NITTOSEIKO CO., LTD.

3.7x
in 8 years

7,467Mil Yen

Cold
HeadedProducts

UP
UP
GIZATITE
ALUMITITE
16▌Growth#1 Business Expansion Strategy
ＣＡＳＥ-related
Business••••

Fastener

Period:May 22nd- May 24th, 2024
Place:
Pacifico Yokohama
Visitors: 76,000 People /600 exhibiting companies
Overview: One of the largest automotive technology exhibitionsin Japan, gathering representatives from automobile, parts, andbody manufacturers from various professions.

Company's original fastening parts＜ Waterproof, Contamination prevention, Loosening prevention, Weight
reduction, Special parts ＞

Screw Robot®
SR580Yθ-Z
CP GRIPevaluation demo

•
•

©2024

Parts Inspection andSorting Equipment“MISTOL AI”
AI function section
displayed on monitor

Wide range of PR products including bolts and pressed
products.
High interest in new ASFA WP product. Record numberof new clients.
NITTOSEIKO CO., LTD.

EV／LIB Business

Assembly
Machine••••Control
SystemPeriod:Feb 28th～March 1st , 2024
Place:
Tokyo Big Site
Visitors:
69,000 People
Overview: Exhibition of battery technologies
indispensable for the spread of renewable energy and EVs
to achieve carbon neutrality.

Automatic Powder Resistance
Measurement System “MCP-PD600”
Measure resistance of electrodematerial
Moisture Measuring Device “CA-310”
Measure water content of electrolyte

High battery-related demand was evident, and amany new clients were acquired.

17

▌Growth#1 Business Expansion Strategy
Non-Japanese companies

EuropeFastener

Year 2022

Expand sales to Europe markets with low sales ratiosYear 2023

From year 2024

NX driver T3 series CE
compliant

Product expansionof CE models

Market Research
Trade show
exhibitions

Assembly
MachineHANNOVER MESSE

January : Cooperative Robot Partially CE compliant

Strengthened relationships with European trading companies
and established business routes

Fastener Fair Global

October: International Supplier Fair (Planned)

Sales expansion of European parts suppliers
Establishment of Europe
OfficeBusiness development of European
trading companies

Office expansion

Exhibition results and plans 2024 → PR targeting non-Japanese companies
First half-year
USA

Apr 30th- May 2nd
ASSEMBLY SHOW SOUTH
Mar 20t-22nd2024 Fastner Expo Shanghi

China・
TaiwanMar 28-31st ITES深圳工业展
Jun 5-7th
Fastener Taiwan

SE Asia

May 15-18th
SUBCON THAILAND 2024

©2024 NITTOSEIKO CO., LTD.

Focus
Industry

PR ProductSecond half-year（Plan）

Automobile

Screw fastening robot

Oct 8-10thBattery Show

Automobile
IT/Informationequipment

Parts for batteries, screws
for weight reduction, microscrews, anticontamination screws,
robotsAug 2-4th (China）
New Energy Auto Technology andEcological EXPO 2024

Electrical andElectronic Parts
Automobile

Battery parts, lightweightscrews, screwdriver

Automobile
Electrical andelectronic parts

Anti-contamination screws,
waterproof screws,
lightweight screws, screw
fastening machines

Oct 22-24th
ASSEMBLY SHOW

November（Thailand） December（Indonesia）
METALEXMANUFACTURING
INDONESIA
18

Assembly
Machine▌Growth#1 Business Expansion Strategy
Results by GrowthTarget

CASE-related

Progress in 2024

Business

23.3％

Plan 2025, 3,297
Plan 2024, 2,912

Q2 Result, 679

In Japan, orders for CASE-related
screw fastening machines and orders
for equipment for new car models
are increasing, but capital investment
remains sluggish in the U.S. andThailand.

Q2 Result, 314
Aug launch

NX driver T3 series low torque model
Low-torque model added to high-precision,
high-performance driver series. Suitable forsmall-diameter sizes for ECU boards, home
appliances, precision equipment, etc.

Overseas Sales

Non-Japanese Companies

Progress in 2024

22.5％

Plan 2025, 1,767
Plan 2024, 1,395

Local subsidiaries in China and Thailand are jointly developing
Asian models. Demonstration models exhibited at trade shows in
China and India. Developing local users at exhibitions in China
and Thailand, focusing on EV-related products. In parallel, sales
expansion to Europe is underway.
Progress in 2024

Progress in 2024

Expansion of Business Area

25.9％

Plan 2025, 4,263
Plan 2024, 3,791
Feb launch
The Company is promoting initiatives for CE
PD400 Series Screw Fastening
marking, RoHS, etc., which will serve as theUnit for Cooperative Robots
foundation with an eye on the European market.
CE marking compliant for someIn addition, we will enhance product lineup withmodels
a focus on specific countries.
Q2 Result, 980

Q2 Result, 290

35.2％
Plan 2025, 940

Plan 2024, 825

Received large orders for equipment for general-purpose engines,
equipment for industrial pumps, and equipment for furniture assembly.
Focusing on new products that contribute to CO2 reduction by reducing
robot size and power consumption.

Unit: Mil Yen
Forecast for the second half of 2024

Corresponding Products, Businesses and Initiatives•

Capital investment related to increased electrification ofvehicles is on the rise.

•••Strengthen sales by the battery sales promotion team
July: Automotive Engineering Exposition (Nagoya)
October: Monozukuri World (Osaka)•

Developing local users in China, Thailand, and South
Korea, focusing on EV-related products. In the U.S.,
inquiries from local users are increasing throughexhibitions.

•••

Reinforcement of visits to local target users
October: Battery exhibition (U.S.A.)
October: Parts manufacturers' exhibition (Germany)•

Orders are increasing in each country, but there aredelays in capital investment plans for large projects inSouth Korea.

••

Conduct product briefing sessions for dealers in each country
Strengthen sales of strategic products to expand sales in
Europe and India••

Increased demand for carbon neutral products.
Increased demand in the energy sector, such as
electricity meters.

•

Strengthen sales of lightweight screw fastening units with
reduced environmental impact
Aug-Oct Screw fastening trial campaign
Sep-Dec New product sales expansion campaign

Gross Target

CASE-related

Non-JapaneseCompanies
Overseas Sales
Expansion ofBusiness Area
©2024

NITTOSEIKO CO., LTD.

•
•

19

▌Growth#1 Business Expansion Strategy
Results by GrowthTargetEnvironment-related

Progress in 2024

Control
SystemSemiconductor/Food

59.7％

Plan 2025, 552

Q2 Result, 244

New products meet demand foranalysis of organic fluorine due
to European PFAS regulations;exhibited at Sea Japan in April
to promote microbubble
generators.

Plan 2025, 30
MarlaunchPlan 2024, 409

Plan 2024, 20

Automatic Quick Furnace 「AOF/AQF-5000H」

1.5％
Q2 Result, 105

Plan 2024, 132

The first order was received from a Thai government agency as a result of
collaboration with a university research institute and sales activities. Sales arescheduled in the second half of the fiscal year.

•

Progress in 2024

30.3％

Plan 2025, 424

Plan 2024, 346

Exhibited at BATTERY JAPAN in February to promote measurement
equipment; demand for resistivity meters for battery materials, etc.
increased, but inspection and sorting equipment MISTOL series did
not receive orders for EV/LIB.

Unit: Mil Yen
Corresponding Products, Businesses and Initiatives

Forecast for the second half of 2024

Gross Target

Q2 Result, 39

EV/LIB-related

Progress in 2024

Plan 2025, 168

Q2 Result, 2

195.0％

In particular, sales to the food industry increased by 28 Mil yen
YoY. Development of new products with a wider measurement
range and higher accuracy than conventional products is
ongoing.

New model of fully automateddevice for analysis of halogens andsulfur from combustion
decomposition of solids and liquids

Overseas Ground Investigation Business

Progress in 2024

Demand for PFAS analysis remains strong, especially in Europe
and the U.S. Expect further demand expansion under the U.S.
EPA's legal restrictions. Demand is also expected to increase inJapan for PFAS-related organic fluorine analysis.
New business in the environmental field

•
•
•
•

New product launched in March: Automatic Quick Furnace
Explore the market for analytical centers, etc.
Exhibit micro bubble generator at November exhibition in Japan
Develop organic solvent recycling device

Semiconductor/
Food

Demand is expected to increase in some areas in Japan (Kumamoto,etc.) where semiconductors are booming.

••

Moisture measuring device, resistivity meter
Sales expansion of mass, electromagnetic, and ultrasonic flowmeters

Overseas Ground
Investigation
Business

Demand is expected to increase through lateral expansion following
the order from a Thai government agency.

•

Continue to identify needs for GEOKARTE IV in government agencies

EV／LIB BusinessAlthough demand from China has passed its peak period and is in an
adjustment phase, demand from Japan, Europe, and the U.S. remains
strong.

•••Moisture analyzer, automatic powder resistance measurement system
Sales expansion to battery and battery material manufacturers
November: International Powder Industry Exhibition (Japan)

Environmentrelated
•

©2024

NITTOSEIKO CO., LTD.

20

▌Growth#1 Business Expansion Strategy

Control
SystemDevelopment of organic solvent recycling and recovery equipment

Environment business

Commercialization toward a carbon-neutral society•••

Plant manufacturing technology
Fluid control technology
Explosion-proof technology••

Membrane separation technology
Filter manufacturing technology

Incorporate
Sales of explosion-proof organic solvent recycling
device to chemical solvent manufacturers

Chemical solvent manufacturers

１
ZeolitemembranedeviceBusiness model

Sales

Sales

Sales

２

Silica separation
membrane tube

Sales
Silica separation membrane tube
manufacturing device

Organic solvent recycling device
Expect market size: approx. 2.5 bil yen
NITTOSEIKO CO., LTD.

Sales of silica separation membrane tube
manufacturing device to E-Sep Inc.
Manufacturing device utilizing the Company’s
production technology.

Silica separation membrane tubes for chemicalsolvent manufacturers

Explosion-proof
organic solvent
recycling device

©2024

Sales

PR for CO2 reduction and cost reduction by replacing
distillation and adsorption systems with membrane
systems.

３

Silica separation membrane tubes are a consumable
item to be incorporated into recycling devices, andconstant sales are expected. They can also be
incorporated into existing zeolite membrane recycling
devices. PR of increased functionality by replacing
zeolite membrane with silica membrane.

Aim to reduce CO2 emissions by 50% in the distillation
process of the chemical industry
21▌Growth#1 Business Expansion Strategy

Control
SystemFocus on CO2 emission challenges in the chemical industry

Background of the Project

Breakdown of energy-derived CO2 emissions by industry

Breakdown of CO2 emissions in the chemical industry
Naphthapyrolysis, 16%

The chemicalindustry sector
accounts for 15% of
the total

Source: Ministry of the Environment,“Greenhouse Gas Emissions in FY2021 (Fiscal
Year 2021) (Fixed Report)”

Advantages of membrane••

CO2 and cost reduction

Absorption Type

Membrane Type

◎

Large

×

Medium, multiple

△

Small

Operability

Continuous process〇

Batch process△

Continuous process〇

Energy Consumption

Major consumption

×

Medium△Most energy-efficient

◎

Large

×

Medium

△

Small

◎

Market Share
Cons

50%
Cannot use heatsensitive materials

Overall Evaluation©2024

NITTOSEIKO CO., LTD.

×

〇
×

30%
Decrease in adsorbent
performance△△△

Preparing forCommercialization

Cost of membrane

Distillation,
40%

Emissions are
particularly highin the distillation
process.

Source: Survey by Chemicals Division,
Ministry of Economy, Trade andIndustry

Increased
functionality•

Facility Size

Total Cost

44%

Advantages of silica film

High recycling recovery volume
Reduced waste liquid fraction eliminates the need for conventional
recycling processes (combustion and distillation), resulting in reduced
energy consumption
Distillation Type

Others,Wider application range
than zeolite membranes,
enabling separation inareas that were difficult
before.

△
△

〇

22

▌Growth#1 Business Expansion Strategy

MedicalState of progress

World's first!

Development

High purity, bio-soluble
magnesium for medical use

Non-clinicaltest

Clinicaltrial

Application

Approval

Start ofsales

Development status⚫ Non-clinical study initiated at a university hospitalObtained a Japanese⚫ Research presentations at various academic conferences
patent（June 2023）
・Oct 2022 Collaboration with Dr. Yoshinobu Oka, Kyoto Prefectural
New
University of Medicine
Obtained a U.S.
・Nov 2022 Member of Medical New Business Department
patent（July 2024）⚫ Biological safety and non-clinical studies are underway.

Fracture treatment implants[Pin, Screw, Plate(trial product)]▌Features⚫ High purity magnesium of 99.95% or higher, anessential element for humans and extremely safe.
⚫ Starts dissolving after a certain period of time in thebody, and then slowly dissolves completely over a long
period of time.

©2024 NITTOSEIKO CO., LTD.

⚫ Currently selecting implants suitable for these studies.
⚫ System development for QMS, bioethics, information disclosure,etc.

Establishment of mass production
system⚫
⚫

Investment in facilities for mass
production.
Confirmation of quality andperformance stability.

Progress of patents obtained⚫ Patents already filed in six othermajor countries are scheduled to
be granted sequentially.

23▌Growth#1 Business Expansion Strategy
Growth#1• M&A leading to expansion of business segments

Acquired a manufacturer of cold headed parts(bolts, nuts, etc.) in India

Gurugram

Haridwar
Delhi

Company Information
India

Company
Names

Vulcan Forge Pvt. Ltd.
Vulcan Cold Forge Pvt. Ltd.

Business

Design, manufacture and sales of forged parts

Sales
Destination

Automobile and motorcycle industry, agricultural machineryindustry in India

Office Location①Manesar (Gurugram District)②Bahadorabad (Haridwar District)

No. of
Employees

292（As of July 2023）

Net Sales

752 Mil INR(1,369 Mil Yen) Year ended March 31, 2023

Gurugram Province: More than 50% of Japanesecompanies, including Suzuki’s subsidiary companies, arelocated in this province.
Strength of In-House Integrated Production※1INR＝1.82JPY(As of February 20, 2024)(Consolidated)

In-house production from wire drawing,heading, rolling, plating, inspection tosecondary processing.

Manufacturing and sales of NITTOSEIKO products in India

VulcanStrengthen Group Technology
Expansion of
product lineup©2024 NITTOSEIKO CO., LTD.

Sharing sales
Sharing purchasing
channels to nonchannels
Japanese companies

24▌Growth#1 Business Expansion Strategy
Expansion into growing countries+ Expectations for growth of Indian auto market

Background of the M&A

World’s top GDP 2023
No 1

USA

Existing base

No 2

China

Existing base

No 3

Germany

Sales base established in 2023

No 4

Japan

Existing base

No 5

India

M&A of manufacturer

With this M&A, the Company will
have bases in all top 5 GDP
countries.
GDP rank forecast: 4th in
2025, 3rd in 2027.

India four-wheel vehicle sales forecast (compact cars)

Vehicle Production in India by Category
600
500

MillionWorld's largest two-wheel andthree-wheel market. The fourwheel market is still small.

400

439

459

470

489

505

354

1.4x
in 5 years

300
200
100
0
2021

2023

2024

2025

2026

Source：Global Data

Source：『ACMA Annual report 2023』

Indian government is actively promoting
EVs

Leading Japanese automakers announce production
increase in India.

"By 2030, 30% of all new passenger cars on themarket will be EVs."

2026
2028

Expect growth of the four-wheel market
©2024

2022

NITTOSEIKO CO., LTD.

Increase production line of electric vehicles
Construction of new four-wheeled vehicle plant

Expect expansion of the EV market
25▌Growth#2 Environmental Strategy
CO₂ Emissions

Result FY2024/2Q

Result FY2020-2023▲16.4％（Compared to 2019）⚫ Installation of Solar Panels⚫ Switch to LED lighting⚫ Switching to renewable electricity⚫ Measures to improve operating efficiency of production andmaintenance⚫ Other power saving measures (air leakage prevention formachinery, insulation of equipment, heat shielding, etc.)

▲30%

▲12%

(t)

30,443

26,77029,964

26,437 25,321▲100%(Carbon
Neutralization)

2019

2020

2021

2022

2023

2024

Plan of Initiatives till 2030
⚫ Installation of solar panels
Winter 2024: Ayabe Fastener Plant

2025

2030

2050

Target FY2030▲30％（Compared to 2019）⚫ Reduction of electricity and transportation costs due to
new factory construction and layout changes
Solar panels(Subsidiary in Thailand)

Solar Panels(Ayabe Assembly Machinery Plant)→Achieved 100% Green Energy

Waste

ESG support for customers

Result FY2024/2Q

Target FY2025▲25.5％▲5％（Compared to 2019）

Waste volume remained flat due to an increase in thenumber of manufacturing bases following M&A.
Promoting reduction of alkali waste and plating sludge, andconversion of waste plastics into solid fuel and reduction of
their volume.
©2024

NITTOSEIKO CO., LTD.

Ayabe Fastener Plant
Restructure Plan

Cold
headedparts● Expansion of TAPTITE product lineup● Diversification of dissimilar metal joining● Lightweight parts fastening support● Conversion from machining to cold heading● Development of new fastening technology

Assembly
Machine● Weight reduction of products ● Improving energy efficiency of products● Promoting automation ● Sales of environmentally friendly products● Improvement of product precision

Medical
Device● Commercialization of bio-soluble implants26▌ Growth#3 Human Resource Strategy
Labor Productivity

Q2 of 2024

UP

－

3.1％

（vs. 2022 results）（Measured Nov-Dec
every year）

Strengthen capital cost management and groupmanagement control

Pursuit of a healthy and happy work environment

Feedback Training

Health and Productivity Management Organization 2024
（White 500）

Training for managers to develop subordinates throughfeedback and to verify the linkage between the internal
index “NPI ‘* and the individual goal management
tool ’Challenge Sheet.”*NPI：An abbreviation for “NITTOSEIKO Progress Indicator,” which systematizes the actionplans of each department and the initiatives based on them, and quantifies and visualizes
the rate of progress. 。

VALUE UP2024
Initiatives to make each employee aware of “the power toearn” and link it to value-added improvements. Employees
select and implement their own initiatives from a list of
departmental initiatives, and report on the results every
month.

MVV Meeting
Set opportunities for the president and employees to sharethe company's philosophy and engage in dialogue to achieve
the mid-term management plan.
•
Director (January)•
New chief (April)•
New chief and director (April)©2024

Q2 of 2024

Engagement Score

NITTOSEIKO CO., LTD.

The company was certified for the fourth consecutive year
in recognition of its seven initiatives, including “Nicotto7,”
aimed at improving the risk of lifestyle-related diseases.
Each of the four group companies was also certified.
Group Companies●Health and Productivity Management Organization 2024
(Small-Medium Sized Corporation Category )Bright 500”
・NITTO KOSHIN Co., LTd. (３ consecutive years)●Health and Productivity Management Organization 2024
(Small-Medium Sized Corporation Category )・NISSEI CORPORATION（2 consecutive years）
・Fine Co., Ltd.（2 consecutive years）
・TOYO SEIKO Co.,Ltd. （First time）

Sports Yell Company 2024
The Company was recognized for its support of club
activities, efforts during Physical Fitness Month, andparticipation in the Citizen's Ekiden Road Relay Racefor the fourth year in a row. Group company NITTO
KOSHIN Co., Ltd. has also been certified for threeconsecutive years.
27▌ Growth#4 Financial Strategy
GROWTH#4 Financial Strategy
Result FY2022

2025年 Target

Q2 of 2024

ＲＯＩＣ

5.7％

ＲＯＩＣ

6.0％

ＲＯＩＣ

Over 8％

ＲＯＥ

6.1％

ＲＯＥ

6.0％

ＲＯＥ

Over 9％Analyze return on investment in businessexpansion

Effect of CMS on debt reduction

Improve Fixed Asset Turnover
To improve the fixed asset turnover ratio, we will strengthen thesystem to check whether the investment effect is greater than theGroup's WACC of 6.7% for capital investments aimed at improving
profitability.
In addition, on-site verification of fixed assets is underway. Idle orineffective facilities will be identified to reduce taxes and assets.

Expanding Dialogue with Shareholders
Tour of Factory
Held a factory tour for institutional
investors in Ayabe City, Kyoto Prefecture,
where the company's head office islocated. In addition, we held a plant
tour for former employees to securestable shareholders.
©2024

NITTOSEIKO CO., LTD.

Interestbearingdebt

End of 2023

End of June 2024

1.93Bil Yen

1.84 Bil Yen

PaidInterest

YoY▲2 Mil Yen

Reducing interest-bearing debt through CMS isunderway and is expected to be reduced by 200
million in 2024. Group funds will be allocated tohighly effective investments in consideration of
the cost of capital.
28

３．Forecast for the Fiscal YearEnding Dec 31, 2024

©2024 NITTOSEIKO CO., LTD.

29

Forecast for FY2024 (Consolidated)
2023/12 Full Year

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

AmountRatio (%)

Net sales

44,744100.0

48,200

100.0

3,455

7.7

Operating profit

2,614

5.8

3,300

6.8

685

26.2

Ordinary profit

2,835

6.3

3,500

7.3

664

23.4

Net income attributed to shareholders of theparent company

1,734

3.9

2,100

4.4

365

21.1

4Q

Net income per share (yen)

46.95

-

57.46

-

-

-

2023

Unit : Million yen/%

YoY
Amount% Change
ChangeChanges in the balance oforder backlog

1Q

2Q
2024

Main points
Net Sales

Operating
Income⚫

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

⚫

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

（Million Yen）

Change in net sales by segment（Million Yen）

Change in Operating Income by segment

30Market trend and initiatives by segment
Major market trend

Fastener
Assembly
MachineAutomobile

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

Housing andconstruction

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

Householdgoods

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

Automobile

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

Electrical andelectronic parts

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

Initiatives for this fiscal year

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

Alongside the stable orders for standard machines,
the backlog of orders for special machines
increased. To secure production capacity for
wattmeter special machines, a field with a strong
track record outside of the automobile industry,
the Company is also developing new partner plants.
In addition to the development of new products,
The Company will also focus on cost reduction byreviewing parts and packaging materials andvisualizing procurement prices.

Changes in thebalance of orderbacklog

4Q
2023

4Q
2023

1Q

2024

1Q

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

Energy sector

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

Chemical andpharmaceutical

Expect demand for next generation battery materials
including LIBs.

Environment

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

Development
plan

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

4Q
2023

2Q

2024

Energy sector

Expand sales of the new “Automatic Quick Furnace
AOF/AQF-5000H” for electronic materials andPFAS-related demand. Develop new products
related to inspection equipment to meet the needs
for labor saving and automation. In addition, theCompany will focus on cost visualization, in-houseproduction of machined parts, efficient assembly
production, and sales price revisions.

2Q

1Q

2Q

2024

31

Shareholder Returns
NITTO Power-up Plan FINAL
2015-2018

NITTOSEIKO Mission “G”
2019-2022

Mission G-second
2023-2025（Million Yen）

1,200

60.0%
51.5%

1,000

50.0%
41.4%

800

600

29.4%

131
325

343

32.5%

31.7%

192

400
200

30.6%

33.2%

36.6%

220

Share buyback

27.0%

30.0%

261

190
342

452

448

594

40.0%

594

674

20.0%

0.0%
2016

2017

2018

2019

2020

Total Payout Ratio

10.0%

316

0
2015

Dividend

2021

2022

2023

（Yen）

20

Plan to pay a progressive
dividend of no less than
18 yen per share during
the period of the mid-term
management plan.

18Yen
15
8.5

10
5
0

©2024

6.5
5.0

4.5

4.0

4.5

2015

2016

2017

2018

Year-end DividendInterim Dividend

4.5

4.0

9.5

6.0

4.5
5.5

NITTOSEIKO CO., LTD.

8.0

9.0

6.0
2019

4.0
2020

7.5

8.0

9.0

9.5

2021

2022

2023

2024
(Plan)
32

４． Appendix©2024 NITTOSEIKO CO., LTD.

33

Analysis of Cost-of-Capital Management
Issue①Operating income ratio
High product costs and market
competition have resulted in weak
operating income ratios.

②Return-on-capital ratio
Return on capital is below cost ofcapital (WACC 6.7%) and deviatesfrom market expectations

ActionTarget- Invest strategically in growthmarkets- Improve management efficiency- Expand into new businesses

Achieve the target
operating income
margin of 8.6% since
2019.

- Use management resources
effectively- Pursue investment returns- Reduce capital cost

Early realization of
ROE９％
ROIC８％- Stable dividend payout ratio- Enhance dialogue withshareholders- Enhance disclosure in English

Achieve and maintaina P/B ratio of 1.0x or
more③Dialogue with the capital market
Dialogue with the capital market
needs to be enhanced and intensified
to further increase corporate value.

Implement initiatives for each of the 3 issues
in the 4 key strategies of Medium-Term Management Plan Mission G-second©2024

NITTOSEIKO CO., LTD.

34

Actions to achieve management with a focus on cost of capital and stock price
4 key strategies of Mission G-second
Action①Operating income ratio- Invest strategically in growth markets- Improve management efficiency- Expand into new businesses②Return-on-capital ratio- Use management resources
effectively- Pursue investment returns- Reduce capital cost

Growth#1

Growth#2

Growth#3

Business Expansion
Strategy

Environmental
Strategy

Human Resource
Strategy‐ M&A leading to expansion ofbusiness segments‐ Develop new overseas
accounts‐ Strengthen intellectual
property strategy‐ Entry into newenvironmental businesswith core technologies‐ Strengthen development ofhigh value-added
environmental products‐ Strengthen investment in
the education andtraining of global humanresources③Dialogue with thecapital market‐ Disclosure of issues andinitiatives, as well as
targets and results, foreach segment- Stable dividend payout ratio- Enhance dialogue with shareholders- Enhance disclosure in English

Market Valuation

800

0.61

0.59
0.59

200

641

448

650

493

526

2019

2020

2021

2022

2023

0

0.00

Ending stock price(yen)NITTOSEIKO CO., LTD.

2025
(Plan)
Ending PBR(times)‐ Use CMS to reduce debt
and use of capitalefficiently‐ Utilize ROIC indicators for
efficient and strategic useof capital‐ Progressive dividend
payments during theperiod of the mediumterm management plan
‐ Acquisition of treasury
stock in response tochanges in surplus funds

60,0007.5

0.50‐ Analyze return on
investment in businessexpansion

Revenue
9.0

7.8
6.1

0.82

400

©2024

Cost of Capital

1.00

0.89

‐ Reinforce IR handlingorganization structure‐ Enrich ESG-related
disclosures

1.50

1.00

600

‐ Strengthen capital costmanagement capabilities‐ Strengthen groupmanagement capabilities‐ Measures to achieve both
improved production
efficiency and reduced GHG
emissions‐ Reform the Group's
production system andsupply chain with a focus
on QCD

Growth#4
Financial Strategy

5.4

2.9

6.1

5.7

5.5
5.3

8.0

WACC
6.7%

2,596 1,303 3,249 2,931 2,614

2.52019 2020 2021 2022 2023
ROE（％）

34,85732,90444,74444,021
40,5182025(Plan)ROIC（％）

5,160

2019 2020 2021 2022 2023

2025
(Plan)Net Sales
Operating Income(Million Yen)

35

Balance Sheet (Consolidated)
Unit : Million yen/%

Year ended Dec 2023

Year ending Dec 2024/2Q

AmountAmountRatio (%)

Ratio (%)

YoY
Amount change% Change

Assets33,822
8,849

63.4
16.6

35,292
9,615

64.5
17.6

1,470
766

4.3
8.7

Electronically recorded monetaryclaims - operating

12,79424.0

12,914

23.6

120

0.9

inventory

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

20.7
36.6
26.5
1.9
8.2
100.0

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

20.9
35.5
26.0
1.7
7.8
100.0

411
△ 111
95
△ 59
△ 147
1,358

3.7
△ 0.6
0.7
△ 6.0
△ 3.4
2.5

12,901

24.2

13,082

23.9

180

1.4

8,615

16.2

8,474

15.5

△ 141

△ 1.6

1,574
4,040
16,941

3.0
7.6
31.8

1,530
3,749
16,831

2.8
6.9
30.8

△ 43
△ 290
△ 110

△ 2.8
△ 7.2
△ 0.7

3,522
29,400△ 1,562
36,402

6.6
55.1
△ 2.9
68.2

3,522
30,072△ 1,562
37,871

6.4
55.0
△ 2.8
69.2

－
671
0
1,468

－
2.3
－
4.0

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

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

36

Cash Flow Statement (Consolidated)
FY2023/2Q

Unit: Million yen / %FY2024/2Q

AmountAmountAmount change% Change

CF from operating activities ※①

2,371

1,628

△ 743

△ 31.4

CF from investing activities ※②

△ 539

△ 807

△ 267

-

（Free CF） ※①＋②

1,832

820

△ 1,011△ 55.2

CF from financing activities△ 1,105

△ 482

622

-

556

557

0

0.1

8,305

8,027

△ 278

△ 3.4

8,862

8,584

△ 278

△ 3.1

Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period
2,371
1,832

1,628

CF from operating
activities
820

CF from investing
activities
FCF

△ 539
2023/2Q△ 807
2024/2Q

37

Capital Expenditures, Depreciation and R&D Expenses

Unit : Million Yen

2022/122023/12AmountAmountAmount2024/122024/122Q（Forecast）

AmountAmount

1,171

1,122

1,299

506

1,350

M&A expenses

0

2,133

-

100

2,000

R&D expenses

715

764

737

352

1,000

Total

1,886

4,019

2,036

958

4,350

（Depreciation）

1,294

1,421

1,489

684

1,450

Capital Investment

Improved productivity and quality,
reduced CO₂ emissions

2024
Layout changes of Yata plant
Addition of product management system in
Shiroyama plant

Renewal of equipment toimprove processing quality

2024
Heat treat furnace No.1 Function added
Introduction of a machining center
2024
Joint research with eSep Inc.
（investment of 100 million yen and joint development cost of 50
million yen）
Acquired a manufacturer of cold headed parts in India

Business expansion©2024

2021/12NITTOSEIKO CO., LTD.

38

Management Approach1

We will carry on our management philosophy and enhance ourcorporate value by developing our business.

2

We will be recognized and sought after by our stakeholders for therealization of a sustainable society.

3

As a manufacturing solutions group, we will share our customers'
materiality and strive to solve their issues.

4

We will ensure a strong financial position to carry out all of these
activities.

39

Forecasts of future performance contained in this document are based on information currently
available to the Company and certain assumptions that the Company considers reasonable. Actual
results may differ from these forecasts due to a variety of factors. Important factors that may affectactual results include, but are not limited to, economic conditions in Japan and overseas surrounding
our business domain, demand trends for our products and services, exchange rates, and stock market
trends. Factors that may affect our business performance are not limited to the above.

©2024 NITTOSEIKO CO., LTD.

40