Financial Results Briefing
for the Second Quarter of
the Fiscal Year Ending
March 31, 2023

SEIKA CORPORATION(TSE Prime Market: 8061)

Dear every stakeholders, first of all, I would like to express mysincere appreciation to you all, for your continuous interest in
SEIKA CORPORATION.
I am Akihiko Sakurai, President of SEIKA CORPORATION.
Thank you for joining us for the financial results briefing and foryour continued interest in SEIKA CORPORATION.
We have decided to hold the financial results briefing for thesecond quarter of the fiscal year ending March 31, 2023 and also topost a video of the briefing at a later date.
I hope that this briefing and video presentation will give you a better
understanding of SEIKA CORPORATION.
Now I will start the proceedings.

CONTENTS
01

02

03

Summary of Consolidated
Financial Results
for the Second Quarterof the Fiscal Year Ending
March 31, 2023

Consolidated Forecast
for the Fiscal YearEnding March 31, 2023

TopicsReference Materials

2

In this financial results presentation, I plan to explain the mattersshown here in this slide.

01

Summary of Consolidated Financial Results
for the Second Quarterof the Fiscal Year Ending March 31, 2023

3

Now let me start with the summary of consolidated financial results
for the second quarter of the fiscal year ended March 31, 2023.

Summary of Consolidated Financial Results for theSecond Quarter of the Fiscal Year Ending March 31, 2023
2022/3
1H Result2023/3
1H Result

Transaction value

69,027

million yen

68,866

million yen-0.2 %Net sales

40,452

million yen

40,452

million yen-0.0 %

Operating income

1,304

million yen

1,444

million yen+10.7 %

Ordinary income

1,315

million yen

1,217

million yen-7.4 %

698

million yen

844

million yen+20.9 %

Profit attributable toowners of parent

Change(YoY)

2022/3
1H Result2023/3
1H Result

Change(YoY)

Amount of orders
received

41,667

million yen

46,468million yen+11.5 %

Order backlog

62,141

million yen

64,772

million yen+4.2 %
4

Please look at slide 4.
This shows a summary of the consolidated financial results.
In circumstances that remained uncertain with the COVID-19
pandemic, the soaring prices of resources and raw materials andthe sharp depreciation of the yen, we posted:
Transaction value of 68,866 million yen,
Net sales of 40,452 million yen,
Operating income of 1,444 million yen,
Ordinary income of 1,217 million yen, andProfit attributable to owners of parent of 844 million yen.
Share of loss of entities accounted for using equity method dragged
ordinary income down. Meanwhile, profit rose following a gain on
the sale of cross-held shares.
Regarding orders:
Orders received amounted to 46,468 million yen andthe order backlog stood at 64,772 million yen.
Both were higher than in the same period of the previous year.

Business Summary by Segment (Net Sales and Income)Power Plant(In million yen)

Net sales Power Plant
Segment income

458

4,436

6,686

2022/3
1H Results

2023/3
1H Results

Chemicals andEnergy Plant

2022/3
1H Results

351

2023/3
1H Results

 Chemicals and Energy Plant(In million yen)381
10,553

10,5422022/3
1H Results

2023/3
1H Results· The renovation of large thermal power
generation facilities in Hokuriku
positively affected sales.
· Profitable projects related to disaster
control and security decreased.
· The poor profitability of the fuelbusiness adversely impacted the profit
ratio.

200

2022/3
1H Results

2023/3
1H Results· Large projects including hydraulic power
generation facilities for a large transport
operator positively impacted sales.
· The briskness of Seika Daiya Engine
Co., Ltd.'s business helped boost
segment performance.
· Results of Shikishimakiki Corporation
were helpful to the figure.

5Now, looking at net sales and income by segment —In the Power Plant business, we renovated large thermal power
generation facilities in Hokuriku and there were spot projects in thefuel business. Consequently, net sales surged significantly. On theother hand, segment income was down, due partly to a decrease inhighly profitable projects related to disaster control and security
and the poor profitability of the fuel business.
In the Chemicals and Energy Plant business, net sales were nearly
the same as in the same period of the previous year, with large
projects including projects for the hydraulic power generation
facilities of large transport operators positively affecting net sales.
Segment income grew aided by the results achieved by Seika
Daiya Engine and Shikishimakiki, which are subsidiaries.

Business Summary by Segment (Net Sales and Income) Industrial Machinery

Industrial Machinery (In million yen)
Net sales

16,95017,880

Segment income

544
263

2022/3
1H Results

2023/3
1H Results

2022/3
1H Results

2023/3
1H Results

Global Business (In million yen)

 Global Business

374
8,512
2022/3
1H Results

197

5,342
2023/3
1H Results· Sales from large projects including
bookbinding facilities for government
agencies and manufacturing facilities forhealth food manufacturers had apositive effect.
· Nippon Daiya Valve Co., Ltd. performed
strongly.
· The weakening of the yen increased theearnings of export projects for the
Tsurumi (Europe) GmbH Group.

2022/3
1H Results

2023/3
1H Results· The Tsurumi (Europe) GmbH Group's
results had a positive impact.
· Performance was negatively affectedby restrictions on sales activities anddelayed projects in China andSoutheast Asia during the COVID-19
pandemic.

6

In the Industrial Machinery business, net sales increased. Large
projects including bookbinding facilities for government agencies
and manufacturing facilities for health food manufacturers positively
impacted net sales, and the results of subsidiary Nippon Daiya
Valve were brisk.
Segment income grew immensely after the weakening of the yen
increased earnings from exports from Japan to the Tsurumi(Europe) GmbH Group based in Europe.
Finally, in the Global business, net sales and segment income
decreased on the whole. While the performance of the Tsurumi(Europe) GmbH Group was buoyant, sales activities were restricted
and projects were delayed in China and Southeast Asia due to the
COVID-19 pandemic.

Business Summary by Segment(In million yen)

Net sales
2022/3 1H
Result2023/3 1H
ResultPower Plant

4,436

6,686

Chemicals andEnergy Plant

10,553

Industrial
MachinerySegment income
2022/3 1H
Result2023/3 1H
Result+2,250

458

351

-106

10,542

-11

200

381

+181

16,95017,880

+929

263

544

+280

Global Business

8,512

5,342

-3,169

374

197

-176

Total

40,45240,452

－

1,296

1,475

+178

ChangeChange7This slide includes a table of net sales and income results for theindividual segments. I have just explained them.

02

Consolidated Forecast for the Fiscal YearEnding March 31, 2023

8

I will now move on the consolidated forecast for the fiscal year
ending March 31, 2023.

Consolidated Forecast for the Fiscal Year Ending March 31, 2023
2023/3
1H Result
Transaction value(Note)Net sales
Operating income
Ordinary income

2023/3 Forecast

Progress rate

68,866 million yen 170,000 million yen
40,452 million yen 95,000 million yen
1,444 million yen
3,700 million yen
1,217 million yen
3,700 million yen

40.5 %

2,500 million yen

33.8 %

Profit attributableto owners of parent

844 million yen

42.6 %
39.0 %
32.9 %

Consolidated forecast is calculated based on the information available to the Company as of this moment.
The Accounting Standard for Revenue Recognition and other related standards are not applied to the transaction value.

Changes in dividends
The Company considers the return of profits toshareholders one of the most importantmanagement issues and has a basic policy of
paying a stable dividend. While strengthening
business foundations through efficientbusiness operations across both anoperational and financial perspective, andflexibly responding to funding needs for new
business development, etc., the Company
targets a consolidated dividend payout ratio of
35%.

Interimdividend

Year-end
dividend(Yen)(Forecast)(Forecast)

2019/32020/32021/32022/32023/39This slide outlines the consolidated forecast for the fiscal year
ending March 31, 2023.
The forecasts are:Transaction value of 170,000 million yen,
net sales of 95,000 million yen,operating income of 3,700 million yen,ordinary income of 3,700 million yen, andprofit attributable to owners of parent of 2,500 million yen.
We have been carrying out the Re-SEIKA 2023 medium-termbusiness plan since April 2020. It has set the numerical targets ofan operating income of 3.7 billion yen and profit of 2.5 billion yen
for the fiscal year ending March 31, 2023, which is the final fiscal
year of this plan.
At present, we are convinced that we will be able to achieve thesetargets.
For the current fiscal year, we forecast a full-year dividend of 70
yen per share, consisting of an interim dividend of 35 yen per shareand a year-end dividend of 35 per share, with a payout target of35%.

Amount of orders received
1H(In million yen)Transaction value
1H

Full year(In million yen)

Net sales
1H

Full year(In million yen)
Full year(Forecast)(Forecast)

2021/32022/3Operating income
1H

2022/3(1H)(In million yen)

Full year

2021/32022/3

Ordinary income
1H

2023/3(In million yen)

Full year

2021/32022/3

Profit attributable toowners of parent
Profit per share2023/3(In million yen)
(yen)

1H
Full year
Profit per share(Forecast)(Forecast)(Forecast)(Forecast)

2021/32022/32023/32021/32022/32023/32021/32022/32023/3

10This slide demonstrates trends in different indicators during thepast three years.

Consolidated Forecast for the Fiscal Year Ending
March 31, 2023 by Segment (Transaction Value, Net Sales and Income)
Power
Plant

· Sales of disaster prevention-related equipment to nuclear power plant· Expected to remain almost flat year on year.

Transaction value(In million yen)

Net sales

Segment income

41,00024,7636,686
2023/3
1H Results

2023/3
Forecast

2023/3
1H Results

900

15,0002023/3
Forecast

351
2023/3
1H Results

2023/3
Forecast(Before application of the Accounting Standard for
Revenue Recognition and other related standards)

Chemicals andEnergy Plant· Seika Daiya Engine and Shikishimakiki's sales will be healthy.
· Construction projects for chemical manufactures and others will increase.

70,00024,00019,1192023/3
1H Results(In million yen)

10,5422023/3
Forecast

2023/3
1H Results

381
2023/3
Forecast

2023/3
1H Results

700
2023/3
Forecast(Before application of the Accounting Standard for
Revenue Recognition and other related standards)
11

Now, we will briefly look at the net sales and income forecasts forindividual segments.
First, for the Power Plant business, the forecast net sales is
15,000 million yen and segment income is 900 million yen. Salesof disaster prevention-related equipment for nuclear power plants
are anticipated.
In this segment, we expect to acquire new commercial rights thatwill massively expand the scale of our business. Their effect onfinancial results will be in the next fiscal year and later.
We will be making an announcement as soon as an official
decision is made.
For the Chemicals and Energy Plant business, net sales are
forecast to be 24,000 million yen and segment income will be 700
million yen. Sales at Seika Daiya Engine and Shikishimakiki will
be brisk although they will not be as high as in the previous fiscal
year. Large construction projects for chemical manufacturers willlead to an increase in sales.
Also, we are positively working on decarbonization-related
projects. They include the modification of existing power
generation facilities for ammonia co-firing, and CO2 separation andcapture systems.

Consolidated Forecast for the Fiscal Year Ending
March 31, 2023 by Segment (Transaction Value, Net Sales and Income)Industrial
Machinery· Sales of manufacturing equipment for health food manufacturers and film manufacturing
equipment for large textile firms will produce good results.
· Nippon Daiya Valve will perform strongly.

Transaction value

Net sales

44,0002023/3
1H Results

Segment income

41,0001,500

17,88019,6402023/3
Forecast

2023/3
1H Results(In million yen)544
2023/3
Forecast

2023/3
1H Results

2023/3
Forecast(Before application of the Accounting Standard for
Revenue Recognition and other related standards)

GlobalBusiness

5,342
2023/3
1H Results· The Tsurumi (Europe) Group's sales will be buoyant.
· The impact of COVID-19 will be serious, mainly in China and Southeast Asia

15,0002023/3
Forecast

5,342
2023/3
1H Results(In million yen)

15,000197
2023/3
Forecast

2023/3
1H Results

600
2023/3
Forecast

12

We are moving on to the Industrial Machinery business. Net sales
are projected to be 41,000 million yen and segment income is
projected to be 1,500 million yen. Both figures will be higher year
on year. Sales of manufacturing equipment for health food
manufacturers and film manufacturing equipment for large textile
firms will positively affect the segment. In addition, the strong
performance of Nippon Daiya Valve is expected to continue.
It has now started considering increasing production to respond tostrong orders.
The services of the drone business that we invested in in thepreceding fiscal year are being briskly adopted by steel
manufacturers, chemical manufacturers and others. It will
positively affect future earnings.
And the last but not least segment is the Global business.
Net sales are forecasted to be 15,000 million yen and segment
income is forecast to be 600 million yen. Both will stay flat from theprevious fiscal year. We assume that it will take some more time
before the performance of the subsidiaries in China and Southeast
Asia recovers since they face restrictions on business activities
during the COVID-19 pandemic. Meanwhile, the sales of the
Tsurumi (Europe) Group are expected to be buoyant in the current
fiscal year.

Consolidated Forecast for the Fiscal Year Ending
March 31, 2023 by Segment
Transaction value

Net sales(In billion yen)Segment income

2022/3Result2023/3
Forecast

Change2022/3Result2023/3
Forecast

Change2022/3Result2023/3
Forecast

ChangePower Plant

39.54

41.0

+1.46

11.36

15.0

+3.64

1.19

0.9

-0.29

Chemicals andEnergy Plant

36.70

70.0

+33.3

22.26

24.0

+1.74

0.74

0.7

-0.04

Industrial
Machinery

41.52

44.0

+2.47

35.19

41.0

+5.81

1.14

1.5

+0.36

Global Business

16.49

15.0

-1.49

16.49

15.0

-1.49

0.73

0.6

-0.13

Total

134.26170.0+35.74

85.3

95.0

+9.70

3.81

3.7

-0.11

The Accounting Standard for Revenue Recognition and other related standards are not applied to transaction value.
13

This slide includes a table showing the transaction value, net sales
and income forecasts for the individual segments.

03
Topics14

Next, I will be talking about some topics related to the Seika Group.

Topic (1)Opening of the Misumi Satellite Office
Higashihiroshima Branch

Fukuyama
BranchIn October 2022, we opened the Misumi
Hiroshima BranchSatellite Office in Hamada, Shimane
Misumi
Satellite
OfficePrefecture as a site under the control ofthe Hiroshima Branch.
Tokuyama Branch
Traditionally, the Hiroshima Branch hasserved Chugoku Electric Power Co., Inc.
and other customers in the coastal areasof Shimane Prefecture. The opening of
this satellite office has paved the way formore flexible sales activities.
In the future, we will continue to improveflexibility and services.

Okayama
BranchYamaguchi Branch
Kitakyushu Branch
Fukuoka Branch

Shikoku Branch
Nagasaki Branch
Oita Branch
Nobeoka Branch

15

We opened the Misumi Satellite Office in the city of Hamada in
Shimane Prefecture on October 19.
In the past, the Hiroshima Branch has served Chugoku ElectricPower Co., Inc. and other customers in the coastal areas of
Shimane Prefecture.
In view of the news that Chugoku Electric Power would introduce
an additional boiler power generation system with an output of one
million kilowatts manufactured by Mitsubishi Heavy Industries, Ltd.
to the Misumi Power Station and put it into operation on November
1, 2022, we decided to open the office to increase the flexibility of
the activities we conduct.
We believe that the satellite office will lead to revenue growththrough the cultivation of projects and the conducting of efficientsales activities.

Topic (2)Investment in Euglead Inc.
We invested in Euglead Inc., a business venture engaging in the manufacturing of paramylon
nanofibers (PNF), which are nanofibers derived from euglena. In addition, we formed abusiness partnership with it for the sale of PNF.

Producing nanofibers from euglena
 Automobiles
 Household appliances Separators of electrode materials for fuelcells and others
 For housing and building materials
Expected to have a wide variety of
applications as a reinforced plastic composite.

EuglenaParamylon

Fine algae holding animal andplant characteristics andcontaining rich nutrients

Polysaccharide composed of
β-1,3 glucan stored in euglena
with a sophisticated crystal
structure. It has a uniform
particle size of 5 μm.

Paramylon
nanofibers (PNF)
Produced from paramylon
and free of impurities.
As a material, they haveuseful properties.

What is PNF?
 Nature-derived nanofibers
 Its strength is five times that of steel witha weight that is about one-fifth the weightof steel About a quarter of the cost of CNF
16

Moving on to the next topic —Last September, we invested in Euglead Inc. and formed a sales
and business partnership with it. Euglead is a business venture
engaging in the manufacturing of paramylon nanofibers (PNF)
produced from euglena.
This PNF is a nature-derived nanofiber with a strength that is fivetimes the strength of steel despite it weighing only about one-fifth
the weight of steel. It attracts attention as a composite material forplastics for automobiles, household appliances and housing andbuilding materials. We have already received inquiries from a large
number of customers.
We will strive for continuous growth and positive achievements
through the sale of sustainable products in harmony with the global
environment.

Topic (3) SMI Signs Business Partnership Agreement with ACE

Issues· Tire manufacturers carry out large-scale tests involving the driving of vehicles under different natural
conditions to analyze and assess abrasion, friction and other tire characteristics when developing products.
This requires a huge amount of time, money and labor.
· Manufacturers of the materials supplied to tire manufacturers may also possibly conduct similar tests.
· In recent years, environmental measures such as the reduction of the number of tires used in the tests thatare disposed and abrasion powder have been drawing attention.

SEIKA




Able to test abrasion, friction and othercharacteristics using tire samples insimulated driving instead of actual
driving, the simulation reproduces tire
slippage under dry, rainy and snowy
conditions.
This facilitates the assessment of tire
performance and achieves a highdegree of correlation with the datacollected in real driving tests.

× Signed a North America dealershipcontract with Ueshima Seisakusho.
Launched collaboration in the UnitedStates.
 Purchased demonstration prototypes
from Ueshima Seisakusho and put one
on display in trade shows. Anotherprototype is also placed in ACE's
demonstration room.
 Aiming to expand business
opportunities to comprehensively
supply different items to tire andmaterial manufacturers.



×





Launched in Akron, Ohio, amid an
industrial cluster of tire and chemical
manufacturers
Conducting various physical tests ofrubber and other materials on contract
as well as the analysis and evaluationof materials and consulting services.
Its name recognition has rapidly
increased in recent years in the tireand rubber industry.
Capable of testing materials related toroad construction to expand its
services into the social infrastructure
sector.

Rotation Traction
Measurement (RTM)

17

Next, I will talk about the activities of SEIKA MACHINERY INC., or
SMI. It is our subsidiary based in the United States.
SMI has been mainly providing substrate mounting equipment forelectronic components. As part of the efforts to expand sales ofgreen innovation products based on a strategy in our long-term
vision, VIORB 2030, we released tire rubber testing equipment.
In recent years, environmental measures such as the reduction ofabrasion powder have been gathering attention. Tire manufacturers
and material manufacturers are endeavoring to solve this problem.
SMI has signed a business partnership agreement with ACE. It is alarge testing body with a laboratory in Akron, Ohio, which is theheartland of the US tire industry. In August, we placed different
laboratory demonstration prototypes produced Ueshima
Seisakusho Co., Ltd., a company famous for rubber testers. We
have thus built a sales system in the United States.
Tire manufacturers and material manufacturers are conducting
tests in demonstration centers. Opportunities for selling testing
equipment are growing.
We have already won an order from a large US-based tire
manufacturer. We have great hopes for future sales.

Social Contribution Activities

Investment in Renatech Co., Ltd.
SDGs Support Fund
We invested 15 million yen in Renatech Co., Ltd. in orderto support its metallo-balance cancer risk screening
business.
Providing a high-reliability, low-cost cancer risk exam
tool, this business helps detect early-stage cancer. Our
determination that this addresses SDG 3: Ensure healthy
lives and promote well-being for all at all ages led to ourdecision to invest.

Donation of 600,000
high performance face masks
We donated approximately 600,000 hydro silver titanium®
non-woven masks manufactured by DR.C Medical
Medicine Co., Ltd. to the Okayama Prefectural
Government, the Yamaguchi Prefectural Government, theNagasaki Prefectural Government, the Kitakyushu City
Government, the Tokyo Community Chest Society, foodbank OSAKA, Foodbank Tama, FUKUSHIMA Inochi-noMizu and others.
It is a functional face mask developed by DR.C Medical
Medicine, a specialist in development of therapeutic agentsagainst infectious and allergic diseases, through theapplication of its hydro silver titanium® technology that
decomposes unsanitary proteins and proteins in pollen into
water, carbon dioxide, nitrogen and other components.
ProteinHydro silver titanium®
Decomposing into
water, carbon dioxide,
nitrogen andother components

18

Finally, I would like to mention our social contribution activities.
We, the Seika Group, have established an SDGs Support Fundworth 1 billion yen in accordance with our long-term management
vision, VIORB 2030: What we can do for the global environment
and for industrial development.
The fund provides financial resources for projects that are deemed
to be helpful in addressing the SDGs to support their activities.
Renatech's metallo-balance cancer risk screening business was
selected as the very first project supported by the fund, and weinvested 15 million yen in the company.
It is a project that provides a high-reliability, low-cost cancer risk
exam tool that helps detect early-stage cancer. We decided tomake this investment since we determined that the investment fell
under the category of efforts to address SDG 3: Ensure healthy
lives and promote well-being for all at all ages.
In addition, we donated around 600,000 hydro silver titanium® nonwoven masks manufactured by DR.C Medical Medicine Co., Ltd. topublic organizations, a community chest society and other parties.
We will continue to proactively conduct social contribution activities.

Cautionary Note: Forward-Looking Statements:
All forward-looking statements contained herein are based on information available to SEIKACORPORATION as of the date hereof and actual results may differ materially from those in theforward-looking statements due to unforeseeable factors or uncertainties.
Figures in billions of yen or millions of yen presented herein are rounded down to the nearest billion
yen or to the nearest million yen respectively and numbers may not add up due to rounding.

IR Contact
Corporate Planning Dept., Tel: +81-3-5221-7117
E-mail: SMB076@jp.seika.com

19This is the end of the financial results briefing for the second
quarter of the fiscal year ending March 31, 2023.
We look forward to your continued support and guidance.
If you have any questions about this financial results briefing,please contact our Corporate Planning Department, and its staff will
respond.
Thank you very much for your time.