Financial Results
Briefing for the Second
Quarter of
the Fiscal Year Ending
March 31, 2024

SEIKA CORPORATION(TSE Prime Market: 8061)

1Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2024

Result: Profit (1H) at 1.46 billion yen [Up 0.62 billion yen YoY]
 Profit increased, reflecting the steady performance of consolidated subsidiaries and an improvement in the profit ratio of
individual projects, more than offsetting an increase in general and administrative expenses attributable mainly to theestablishment of a network of sites associated with the launch of sales distributor operations related to nuclear power plant
equipment of Mitsubishi Heavy Industries, Ltd. and investment in human capital (personnel expenses and education and training
expenses).

Full-year forecast: Profit at 3.4 billion yen [Revised up by 0.5 billion yen]
 Profit is forecast to stand at 3.4 billion yen (as compared to 2.9 billion yen in the initial forecast), supported by the newly
launched sales distributor operations related to nuclear power plant equipment of Mitsubishi Heavy Industries, Ltd., as well as
strong sales of competitive commercial products in the Product Business.
 An order backlog is expected to be accumulated due to a brisk order intake in the Energy Business. Meanwhile, the achievementof the profit target under the Medium-term Management Plan VIORB 2030 Phase 1 has come in sight.

Shareholder return: Dividend payout ratio at 35% (goal)  Total return ratio at 45% (goal) Dividend amount: Interim dividend at 60 yen and annual dividend at 120 yen (dividend amount in the previous year: 90 yen) Introduction of a shareholder benefit program

Number of shares held

Benefits

100 to 299 shares

QUO Card worth 1,000 yen

300 to 499 shares

QUO Card worth 2,000 yen

500 shares or moreQUO Card worth 3,000 yen

2CONTENTS
01

02

03

Toward Achieving theProgress in the

Topics for the

Numerical Targets under the

Implementation of theFirst Half of FY2023

Long-Term Management

Medium-Term

Vision Ahead of Schedule

Management Plan

04

05

06

Summary ofConsolidated Forecast

Shareholder Returns

Consolidated Financial

for the Fiscal Year

Results for the Second

Ending March 31, 2024

Quarter of the Fiscal YearEnding March 31, 2024

★ Reference Materials★

3

01
Toward the Achievement of Numerical Targets
under the VIORB 2030 Long-Term Management Vision
Ahead of Schedule4

Toward the Achievement of Numerical Targets under VIORB 2030
Ahead of Schedule Priority business domains
Decarbonization

Energy conservation
Resources conservationDX

Circular economy

VIORB2030 Final Phase
VIORB2030 Phase 1
Upwardrevision

Initial consolidated
profit forecast for
FY2023

2.9

Revisedconsolidated profit
forecast for FY2023

3.4 billion yen

Consolidated profit
target for FY2026

3.5
billion yen

Consolidated profit
target for FY2030

4.5
billion yen

billion yen

Long-Term Management Vision VIORB 2030
5

Accelerate Implementation of the Growth Strategy
We will accelerate the implementation of our growth strategy (investment in growth opportunities) toachieve the profit target of 4.5 billion yen set out in the VIORB 2030 long-term vision before FY2030.
Our strengths

Product Business● Trading based on strong trust-based
relationships with major business partners

Segment operating income(Revised
forecast)

2.6(Forecast)● The ability to propose products to a range ofindustries through transactions with diverse
manufacturers

Business strategy● Strengthen the business foundations
based on the energy business● Make strategic business investments
toグループ企業でのdevelop new commercial rights
andオリジナル商材の開発
commercial products

2.2(Initial forecast)

FY2023

プロダクト● Engage in selection and concentration
事業の柱創出based on the careful examination of growthpotential and implement asset replacement

トレーディングのグローバル化

FY2026

FY2030Industrial Machinery
Business

Segment operating income(in billion yen)

Rebuilding of the business portfolio
事業投資・M&A

産業機械(in billion yen)

2.9

● Development of unique products that areniche and competitive

0.8

0.3 (Forecast)(Revised
forecast)

0.5(Initial forecast)

FY2023

FY2026

FY2030

Energy Business

社是
社訓

Segment operating income

トレーディング・
ソリューションのエネルギー 提供形式の進化

事業の強靭化・収益構造の盤石化(in billion yen)

1.3

1.8

(Revised (Forecast)
forecast)

0.9(Initial forecast)

FY2023

FY2026

FY20306

Action to implement management that is
conscious of cost of capital and stock price7

Action to implement managementthat is conscious of cost of capital and stock priceBusiness analysis● Our trust-based relationships, including our personal relationships with our customers, which we have developed based on
our many years of history as a Mitsubishi Heavy Industries sales distributor, are the stable foundation of our competitiveness.
● We have developed a new business related to nuclear power generation, one of our growth pillars,
and stabilized the growth trajectory of our energy business.
● The industrial machinery business lacks the necessary management resources to expand into new business fields or
differentiate itself from its competitors.
● Our global network lacks an advantage relative to other machinery trading companies’ networks for creating new revenue
opportunities.
２

Current
Situation

Stock analysis● Our consolidated profit is trending upward, and we have been making progress in asset replacement. However, this is notreflected in the stock price. The PBR is low (0.75 at the end of September 2023). We need to work on improving the PER.
● In Medium-term Management Plan VIORB2030 Phase 1, the dividend payout ratio target was set at 35%, which falls short ofthe shareholder return (total payout ratio, dividend payout ratio, etc.) level of the companies listed on the TSE Prime Market.
● As stated in Medium-term Management Plan VIORB2030 Phase 1, the Company aims to maintain a Return on Equity (ROE) of
at least 8.0%. However, this falls short of the ROE that institutional investors consider desirable over the medium to long term.
● The number of shareholders is gradually decreasing, and individual shareholders’ holdings are becoming more stable.
The trading volume is small. In this situation, our initiatives are not well understood.

Policies● We aim to achieve the consolidated profit target of 4.5 billion yen that we set out in the VIORB 2030 long-term vision,
before FY2030.
● We will make business investments using financial leverage to enhance corporate value and increase shareholder return.

Specificactions● We will revise our ROE target (maintaining an ROE of 8.0% or higher) up to 10.0% and establish an organizational structurethat effectively uses the PDCA cycle to achieve the long-term vision’s earnings target ahead of schedule.
● We will invest 10.0 billion yen in growth opportunities while maintaining financial soundness, taking advantage of
our strong balance sheet.
● We will change our shareholder return target from the dividend payout ratio to the total payout ratio. We will aim to achievea total payout ratio of 45% to increase shareholder return.
● We will aim to reduce cross-held shares to less than 20% of consolidated net assets by FY2024 as planned.
We are considering subsequently reducing them to 10%.
● We plan to introduce a shareholder benefit program to attract new investors and increase stock trading.
● We will promote disclosure, dialogue with investors, and investor relations to have our initiatives understood by more people.
● We will introduce a remuneration system for officers as a sound incentive for the achievement of sustainable growth.
8Upward Revision of the ROE Target
We will take a business approach that emphasizes capital efficiency. We will revise the ROE target (currently 8.0% or more)
up to 10.0%.

Cost of shareholders’ equity
Maintain in the
8.0% range

Aim to achieve
10.0%

The cost of equity capitalhas been between 4.5%
and 6.5%.
FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY20269

02Progress in the Implementation of

the Medium-term Management Plan VIORB 2030 Phase 1

10

Progress in the Implementation of
the Medium-term Management Plan VIORB 2030 Phase 1
Pillars of Sales Strategy

Rebuilding of the businessportfolio Strengthen business foundations based on theenergy business Solve social issue and expand business across fourpriority domains, decarbonization, energy andresource conservation, circular economy and DX
 Strategic business investment (envision a path
toward growth together with business partners,
make business investments whose main purpose is
to secure commercial rights and commercial
products, create innovative businesses, anddevelop new revenue sources)

Human resources strategy
 Introduction of personnel systems thatchampion the success of diverse individuals
and provide job fulfillment to all employees

 Engage in selection and concentration basedon careful examination of each business
entity’s growth potential, and implement asset
replacement

 Promote a wide range of recruitment
activities to recruit professional humanresources including career personnel, area
specialists and career returnees
 Level up human resources with enhanced
education and training[Progress in the implementation] The sales distributor operations related to nuclear
power plant equipment of Mitsubishi Heavy
Industries, Ltd., which were launched this fiscal year,
have been implemented steadily.
 There are brisk inquiries related to the four priority
domains, and many projects for factory process
automation and decarbonization are being
implemented.
 Regarding strategic business investment, there isno commercial product which was developed bymaking specific business investment this fiscal year.

 Promoting sales of cross-held shares Transferred 90% of shares in Takemoto andCompany Limited, which mainly deals in piping
components and plant equipment, to Inoue
Corporation, thus excluding the company fromthe scope of consolidated subsidiaries (July 3)<Acquired additional shares in TVE Co., Ltd.
(making it an equity method affiliate company)> Introducing new personnel systems, which
are free from seniority elements and are
aimed at placing the right people in the rightjobs, in FY2024
 Implementing activities to recruit career
personnel on an area-by-area basis andenhancing activities to recruit career
returnees (The number of new graduate
hires is expected to be double that of theprevious year.) Increased education and training curriculums
and also enhanced programs intended forall employees of the Group11

Numerical Targets under
the Medium-term Management Plan VIORB 2030 Phase 1
Numerical targets for FY2026 will be checked when two years have passed, or at the mid point, andrevised as necessary.
We will formulate a single-year business plan every year, starting in FY2023 as the first fiscal year.

FY2023 Numerical Targets

FY2023 Forecast

Net sales

95.0

Operating income

3.7

billion yen

4.5

billion yen

5.2

billion yen

Ordinary income

4.3

billion yen

5.0

billion yen

5.2

billion yen

Profit attributable toowners of parent

2.9

billion yen

3.4

billion yen

3.5

billion yen

billion yen

85.0

FY2026 Numerical Targets

billion yen

110.0

billion yen

12

03
Topics for FY2023 (- November)

13

Topics for FY2023 (- November)
List of topics for April to November 2023
Apr 1

Renewal of the Company’s website

May 26

Formulation of Medium-term Management Plan VIORB 2030 Phase 1

May 26

Financial results briefing for the fiscal year ended March 31, 2023

Jun 8

Sustainability Committee is established.

Jun 28100th Annual General Meeting of Shareholders

Jul 28

Online company information session is held for private investors (Daiwa Securities Co., Ltd.).

Aug 1

A capital and business alliance agreement is signed between Seika Daiya Engine Co., Ltd.,a Seika Group company, and Eight Knot Inc.

Aug 10Material issues are identified.

Aug 23

Online company information session is held for private investors(au Kabucom Securities Co., Ltd.).

Sep 29A council for developing seaweed beds is established by Seika Daiya Engine Co., Ltd.

Oct 25

Announcement of analyst report release by Shared Research Inc

Nov 10Establishment of Taiwan Seika Co., Ltd. (planned to begin operating on January 1, 2024)

Nov 17

Publish Integrated Report14

04
Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal YearEnding March 31, 202415

Scope of consolidation
Consolidated subsidiaries (domestic and overseas)

Tsurumi(Europe)GmbH

Equity method affiliate companies

Seika Sangyo GmbHTVE
Nippon Daiya Valve Co., Ltd.

SEIKA MACHINERY INC.

Meinan Kyodo
Energy Co., Ltd.
Shikishimakiki Corporation

Seika Daiya Engine Co., Ltd.

Seika Sangyo (Thailand)

S TEC Co., Ltd.

TEN FEET WRIGHT INC.
SEIKA SANGYO (VIETNAM)

Seika Digital Image Corporation
Seika (Shanghai) Co., Ltd.

16

Balance Sheet for the Second Quarter of the Fiscal Year Ending March 31, 2024
PBR (times)
Marketcapitalization
31.5 billion yen(In billion yen)

Current
assets

61.42
Total
assets40.47
Non-current
liabilities

3.78

415.790.82(In billion yen)

Current
assetsEPS (yen)

Current
liabilities
Total
liabilities

44.25
Total
assets44.83
Current
assets68.09

Non-current
liabilities

0.64

0.71
232

Total
liabilities

AdjustedEPS*

FY2021

FY2022

49.10

4.27

0
FY2021

87.74

186.85282.09FY2022As of Nov
21, 2023

FY2023(Forecast)* The values for adjusted EPS exclude temporary factors, suchas negative goodwill.

79.99
Net assets
Noncurrent
assets

35.73

18.56
As of March 31, 2023

FY2023
1H

Change from the endof previous fiscal year

Equity ratio

43.0%

-0.7%

Interest-bearing debt
(In million yen)30

-2,000DER (times)

0.00

-0.07

Net assets
Noncurrent
assets

38.63

19.64
2024/3 1H

17

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2024
2023/3 1H Result

2024/3 1H Result

Change(YoY)

Transaction value

68.86 billion yen

96.86

billion yen+40.7 %Net sales

40.45 billion yen

40.04

billion yen-1.0 %

Operating income

1.44 billion yen

2.05

billion yen+42.0 %

Ordinary income

1.21 billion yen

2.24

billion yen+84.2 %

Profit attributable toowners of parent

0.84 billion yen

1.46

billion yen+73.5 %

2023/3 1H Result

2024/3 1H Result

Change(YoY)

Amount of orders
received

46.46 billion yen

46.03

billion yen-0.9 %

Order backlog

64.77 billion yen

58.45

billion yen-9.8 %
18

Waterfall Analysis of Consolidated Profit (2023/3 1H vs 2024/3 1H)
 Operating income increased, with an increase in gross profit more than offsetting an
increase in SG&A expenses.
 Non-operating income (expenses) improved with the elimination of share of loss of entities
accounted for using equity method
+1.59

-0.98

(In billion yen)

+0.41

-0.33
-0.05

-0.01

1.46

0.84

+0.62

Profit for2024/3 1H

19

Summary of Financial Results for theSecond Quarter of the Fiscal YearEnding March 31, 2024 by Segment

20

Business Summary by Segment (Net Sales and Income)
Energy BusinessNet sales

12,343(In million yen)

Segment income+1,047

13,390

538

534
-4





2023/3 1H
Results

2024/3 1H
Results

2023/3 1H
Results

2024/3 1H
Results

Industrial Machinery
Net sales

15,648(In million yen)Segment income-2,184

13,464

+264



87

-177
2023/3 1H
Results

2024/3 1H
Results

12,460

2023/3 1H
Results(In million yen)

Segment income+728

13,188

1,413

1,114
+299





2023/3 1H
Results

2024/3 1H
Results

2023/3 1H
Results

Promotion of plant process automation and laborsavings
Achieving the recycling and reuse of plastics andother resources
From the sale of standalone equipment tocomprehensive response to customer needs
Promotion of DX using robots and various sensors

2024/3 1H
Results

Product BusinessNet salesContribution of the sales distributor operations related tonuclear power plant equipment of Mitsubishi Heavy
Industries, Ltd.
Reliable maintenance of existing thermal power plants
Orders received for new construction of a biomass power
plant and incidental facilities
Proactive initiatives on solar and hydroelectric power
generation equipment

Manufacturing and sales of valves and pumps remaining
strongExpansion of the inspection business using drones
Strengthening of the semiconductor business in Japan andChina
Practical use of automated navigation system started in themarine engine business2024/3 1H
Results
21

Business Summary by Segment -- At-a-glance Chart(In billion yen)

Net sales
2023/3 1H
Results

2024/3 1H
Results

Segment income
Change2023/3 1H
Results

2024/3 1H
Results

ChangeEnergyBusiness

12.34

13.39

+1.05

0.53

0.53

-0.00

Industrial
Machinery

15.64

13.46

-2.18

-0.17

0.08

+0.25

Product
Business

12.46

13.18

+0.72

1.11

1.41

+0.29

Total

40.45

40.04

-0.41

1.47

2.03

+0.56

22

Order Backlog by Segment(In billion yen)Order backlog

End of 2023/3

Amount oforders received
2024/3 1H

Sales

2024/3 1H

Order backlog

2024/3 1H

Change fromthe end of theprevious fiscal
year

Percentage ofchange fromthe end of theprevious fiscal
year

EnergyBusiness

19.76

18.89

13.39

25.26

+5.50

+27.8%

Industrial
Machinery

20.95

12.67

13.46

20.16

-0.79

-3.7%

Product
Business

11.74

14.46

13.18

13.01

+1.27

+10.8%

Total

52.46

46.03

40.04

58.45

+5.99

+11.4%

23

05
Consolidated Forecast for the Fiscal YearEnding March 31, 202424

Consolidated Forecast for the Fiscal Year Ending March 31, 2024

2023/3 1H Result

2024/3 Forecast

Transaction value(Note)

96.86 billion yen

200.0 billion yen

48.4 %Net sales

40.04 billion yen

85.0 billion yen

47.1 %

Operating income

2.05 billion yen

4.5 billion yen

45.5 %

Ordinary income

2.24 billion yen

5.0 billion yen

44.8 %

Profit attributable toowners of parent

1.46 billion yen

3.4 billion yen

43.0 %

Progress rate

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.

25

Amount of orders received(In million yen)

1H

2022/3Full Year

2023/3Operating profit
1H

Gross sales
1H

2024/3
1H(In million yen)

Full Year

2022/3(In million yen)

Full Year

2023/31H

2024/3

Profit attributable to owners of parent(In million yen)
Profit per share(yen)
1H
Full Year
Profit attributable to owners of parent

2022/32023/32024/32022/32023/3

Net sales

2024/3(In million yen)
Full Year

2022/32023/32024/3

Total assets and Net assets(In million yen)
Equity ratio
1H
1H
Equity ratio

2022/3(%)
Full Year
Full Year

2023/32024/3
1H

26

Consolidated Forecast for the Fiscal Year Ending March 31, 2024 by Segment(In billion yen)Transaction value

Net sales

2023/3Result2024/3
Forecast

ChangeEnergyBusiness

110.8

142.0

+31.2

Industrial
Machinery

37.7

30.0

Product
Business

27.1

Total

175.7

Segment income

2024/3
Forecast

Change

31.2

29.6

-1.6

-7.7

34.9

27.4

28.0

+0.9

27.1

200.0

+24.3

93.3

2023/3Result2024/3
Forecast

Change

2.1

1.3

-0.8

-7.5

0.0

0.3

+0.3

28.0

+0.9

2.6

2.9

+0.3

85.0

-8.3

4.7

4.5
(3.7)

-0.2

* 2023/3 values for each segment are based on the new business segmentation.

2023/3ResultValues in parentheses ( )are initial forecast values.

27

06
Shareholder Returns

28Enhancement of Shareholder Returns andIntroduction of a Shareholder Benefit Program
We will change our shareholder return target from the dividend payout ratio to the total payout ratio. We will aim to achieve a
total payout ratio of 45% to increase shareholder return.
Interimdividend (yen)Year-end
dividend (yen)Upward revision

Forecast
after revision

Dividend
per share

InitialtargetInitialtargetConsolidated total return ratio

Consolidated payout ratio

Medium-term Management Plan VIORB 2030 Phase 1Long-Term Management

Vision VIORB 2030
FY2020

FY2021

FY2022

FY2023

FY2026

FY2030We will introduce a shareholder benefit program to increase the recognition the Company receives and increase stock trading.
Number of shares held

Benefits

100 to 299 shares

QUO Card worth 1,000 yen

300 to 499 shares

QUO Card worth 2,000 yen

500 shares or moreQUO Card worth 3,000 yen* The card designs may not be the same.

29

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

30Reference Materials
Second Quarter of the Fiscal YearEnding March 31, 2024

31

Reference Materials
1. Company Profile
2. History of SEIKA CORPORATION
3. Domestic and Overseas Locations
4. Consolidated Subsidiaries and Affiliated Companies(Domestic and Overseas)
5. Introduction to Each Business
6. Performance Trend
7. Changes in Consolidated Financial Results
8. Trend of Management Indicators
9. Details of Topics
10. Climate Change Initiatives
11. Social Contribution Activities in Recent Years

32

1. Company Profile

Trading name

SEIKA CORPORATIONHead office

Shin-Tokyo Bldg 3F, 3-1, Marunouchi 3-chome, Chiyoda-ku,
Tokyo 100-0005

Establishment

October 1, 1947

Representative

Akihiko Sakurai, President

Capital6,728 million yen

Number of employees

Non-consolidated: 340／Consolidated: 1,025 (As of September 30, 2023)

Core business

Plants, machinery and equipment, environmental protection equipment, sale, importand export of electronic information system equipment

Offices

20 offices in Japan, including head office, Osaka branch, Fukuoka branch andHiroshima branch
3 offices overseas including Taipei branch and Seoul branch

Affiliated companies
and bases

10 affiliated companies in Japan and 16 affiliated companies overseas
98 bases in Japan and 26 bases overseas

Head office:Shin-Tokyo Bldg., Marunouchi

33

2. History of SEIKA CORPORATION (1)October 1947

Established in Moji shi (currently Moji ku , Kitakyushu shi ) by company officials of the former Mitsubishi
Corporation, which was dissolved before the establishment, with capital of 195,000 yen.

From 1948 to 1951 Established offices throughout Japan (Nagasaki, Fukuoka, Osaka, Hiroshima, Tokyo, Takamatsu)

October 1961

Listed shares on the First Section of the Tokyo Stock Exchange

January 1974

Established the subsidiary Seika Sangyo GmbH in Germany (Dusseldorf)

May 1983

Opened the Taipei Branch in Taiwan (Taipei)

November 1983

Established Tsurumi (Europe) GmbH, a joint venture with Tsurumi Manufacturing Co., Ltd. in Germany

April 1994

Established the subsidiary Seika Machinery Inc., USA (Los Angeles)

July 2000

Opened the Seoul Branch in Korea (Seoul)August 2001

Changed registered head office from Kokurakita ku Kitakyushu to Chiyoda ku , Tokyo

January 2004

Established the subsidiary Seika Shanghai Co.,Ltd in China (Shanghai)34

2. History of SEIKA CORPORATION (2)April 2005

Acquired 100% ownership of Nippon Daiya Valve Co., Ltd.

April 2012

Established Seika Digital Image CORPORATION

December 2012

Established the subsidiary Seika Sangyo (Thailand) Co., Ltd. in Thailand (Bangkok)

May 2015

Established Meinan Kyodo Energy

March 2016

Acquired 100% ownership of Shikishimakiki Corporation

January 2019

Established the subsidiary SEIKA SANGYO (VIETNAM) COMPANY LIMITED in Vietnam (Ho
Chi Minh City)

October 2020

Established Seika Daiya Engine Co., Ltd.

April 2022

Transferred to the TSE Prime market

June 2022

Shifted from a company with a board of company auditors to a company with an audit andsupervisory committee

March 2023

Acquired shares in TVE Co., Ltd. (making it an equity method company)

November 2023

Established Taiwan Seika Co., Ltd.
35

3. Domestic Locations

Sapporo Branch
Muroran Branch
Tsuruga Office
Mihama Office
Genden Tsuruga Office
Wakasa Branch
Oi OfficeTakahama Office
Okayama Branch
Fukuyama Branch
Higashihiroshima Branch
Hiroshima Branch
Misumi Satellite OfficeTokuyama Branch
Chiba Satellite Office

Yamaguchi Branch

Akiharaba Office

Kitakyushu Branch
Fukuoka Branch
Genkai Office
Nagasaki Branch

Nagoya Branch
Shikoku Branch

Head OfficeOsaka Branch

Yawatahama OfficeSendai OfficeNobeoka Branch

Oita Branch36

3. Overseas Locations

Seoul BranchTaipei Branch

Viet Nam Office37

4. Consolidated Subsidiaries and Affiliated Companies (Domestic)
Nippon Daiya Valve Co., Ltd.
Tokyo, Osaka, Nagoya, Okayama, Kita Kyushu
Seika Digital Image CORPORATION, Tokyo
Shikishimakiki Corporation

Shikishimakiki Corporation
Head Office in Sapporo and ten other offices in
Hokkaido
Seika Daiya Engine Co., Ltd.
Tokyo Head Office
Tohoku, Kanto, Chubu, Kinki, Kyushu areas
26 offices nationwide

Meinan Kyodo Energy Co., Ltd.
JAPAN EJECTOR ENGINEERING Co., Ltd.

MEINAN KYODO ENERGY Co., Ltd., Chita

TVE Co., Ltd.

SEIWA POLYMER Tsukuba
S TEC Co., Ltd.
Tokyo, Osaka, Tsukuba
Nippon Daiya Valve Co., Ltd.
Seika Digital Image CORPORATIONTEN FEET WRIGHT INC.
Tokyo, Osaka, Takamatsu, Fukuoka

Seika Daiya Engine Co., Ltd.
S TEC Co., Ltd.
TEN FEET WRIGHT INC.

JAPAN EJECTOR ENGINEERING Co.
Osaka (head office), Wakayama
TVE
Hyogo (head office), Tokyo, and 15 other locations38

4. Consolidated Subsidiaries and Affiliated Companies (Overseas)39

5. Introduction to Each Business (Energy Business)
Energy is an indispensable part of industry, life, culture,
and all social activities.
In the Energy Business, we provide support in a range of aspects to ensure that power
generation facilities responsible for creating energy, which is essential for all social
activities, operate without delay. Our main activities are business negotiations related
to the new construction of domestic power plants as well as regular inspections of theplants and any necessary repair work. As a sales distributor of Mitsubishi Heavy
Industries, Ltd., we provide equipment and maintenance services for in-house power
generating facilities of major client companies and thermal and nuclear power plants ofelectric power companies in West Japan.
We support the stable operation of power plants by delivering power generationequipment, such as boilers and turbines, and equipment for environmental protection
including wastewater treatment equipment, as well as by providing after-sales
maintenance services for the equipment. As an intermediary between each customer
and manufacturer, we coordinate pricing, delivery schedules, and other aspects, thus
playing a crucial role in advancing each business negotiation smoothly. In recent years,
we have also been focusing on the fuel conversion and renewable energy market,
which contributes to decarbonization.

Chemicals plant

Power plant

Main products and services







Power generating equipment and related equipment for nuclear power plants
Power generating equipment and related equipment for thermal power plants
Equipment related to renewable energy, including hydropower and biomass power generation
Regular inspections and after-sales maintenance services for each power generation facility
and plant
Security equipment, utility equipment, and other peripheral equipment of power plants
Driving initiatives related to decarbonization of thermal power generation with the use ofammonia or hydrogen or mixed combustion with ammonia or hydrogen, as well as thoserelated to clean energy
Power generation equipment40

5. Introduction to Each Business (Industrial Machinery)High value-added products that support
affluent and comfortable living environments
In the Industrial Machinery Business, we engage in sales andmaintenance of production equipment, logistics equipment, and otherequipment for a wide range of industrial fields including fiber, film, andfood and beverages. Reducing the impact on the global environment
is an important task for business management at all companies. In
the domain of industrial machinery, issues and themes faced bycompanies differ among industries, including the promotion of
resource conservation and the reduction of disposable plastics, while
the shift to energy efficiency is the premise.
In this business environment, members of the sales team in thissegment, who are knowledgeable about each industry, provide
machines and equipment for domestic and overseas client
manufacturers and the optimum solutions that cater to customer
needs.

Film-related equipment

Main products and services







Automation and labor-saving equipment for factory processes
Automated storage/retrieval systems in factories
Remote monitoring equipment utilizing AI and robots, etc.
Freezers and air-conditioning equipment using next-generation
refrigerant (CO2 and ammonia)
Equipment for development at food/pharmaceutical laboratory
plants
Products related to circular economy, including recycled fiber

Automated multi-storey
warehouse in factory41

5. Introduction to Each Business (Product Business)
Unique products that areniche and competitive
The Product Business consists of businesses related to measuring
equipment and electronic equipment at Seika Corporation and Group
companies specializing in valves, underwater pumps, marine engines,
precision analysis equipment, and other products.
We have sole distribution rights over many of the products that we handle.
They are widely offered in Japan and other countries, having establisheda firm position and brand as products from the Seika Group. We develop
and manufacture some products, including valves, ourselves. We are
expanding this business by developing a system for total support for the
products, including maintenance services and seminars, instead of only
selling them.

Nippon Daiya Valve Co., Ltd.
Diaphragm valves

Seika Daiya Engine Co., Ltd.
Marine engines

Main products and services








Marine engines
Diaphragm valves and various other valves
Plant equipment inspection using UT drones
Laser-type gas analyzers, temperature data loggers, and othermeasuring equipment
Underwater pumps for construction work and wastewater
treatment equipment
Particle image velocimetry systems
Diffuser tubes for wastewater treatment equipment

Tsurumi (Europe) GmbH Group
Water pumps42

6. Changes in Consolidated Financial Results(Consolidated Transaction Value and Operating Income)Transaction value

Operating income(In million yen)2024/3
Forecast
Transaction value 148,307 156,588 161,261 123,394 120,243 135,717 136,670 126,487 132,033 127,101 150,742 165,585 157,145 140,677 136,273 134,261 175,741 200,000
Operating income 3,634
3,234
3,754
1,406
2,561
3,065
2,824
2,193
3,400
2,174
3,046
2,598
2,118
2,809
2,581
3,824
4,636
4,500
2007/3 2008/3

2009/3 2010/3

2011/3 2012/3 2013/3

2014/3 2015/3

2016/3 2017/3

2018/3 2019/3 2020/3

2021/3 2022/3

2023/3* The Accounting Standard for Revenue Recognition and other related standards are not applied to transaction value.

43

7. Changes in Consolidated Financial Results(In million yen)

Consolidated Net Sales
85,307

Consolidated Operating Income

85,0004,500

85,0003,824

71,933

Forecast

Forecast
2,809

2020/340,04340,45233,7304,500

2021/32022/3

Net Sales - 1H

2023/32,581

40,0432024/3

Net Sales - Full Year

2,051

860

953

2020/32021/32022/3Operating Income - 1H

* After adoption of Accounting Standard on Revenue Recognition and the implementation guidance

2,051

1,304

2023/32024/3Operating Income - Full Year

Consolidated Profit Attributable to Ownersof Parent
3,400

Consolidated Ordinary Income
5,000
5,000

3,400

3,879
3,122

2,721

Forecast

2,906

2,243
986

2020/3

1,098

2,243

1,315

2021/32022/32023/32024/3

Forecast

2,246

471

530

698

2020/32021/32022/3844
2023/31,465

2024/3-1,262
Profit Attributable to Owners of Parent - 1H

Ordinary Income - 1H

Ordinary Income - Full Year

Profit Attributable to Owners of Parent - Full Year44

8. Trend of Management Indicators

Price Book-value Ratio (PBR)

Return on equity (ROE)(%)(Times)

15.4
10

0.60

0.65

0.64

2021/32022/3

0.71

0.53

7.6

5.6
-4.7
2019/32020/32021/32022/32023/3

Price Earnings Ratio (PER)(Times)2019/32020/32023/3

Earnings Per Share (EPS)(Yen)

415.798.6

10.8

221.874.9
7.0

125.50186.85-100.73

2019/32020/32021/32022/32023/3

2019/32020/32021/32022/32023/3

Note: 3. Price earnings ratio for 2020/3 is not stated because a loss was posted.

45

9. Topic (1)Sustainability Committee is established.
To address a range of social issues, we have consolidated departments, committees, project teams, and otherorganizations, which had been established and operated individually, into three categories -- environmental measures,
people-oriented management, and management quality improvement -- so that they will be operated in a functional,
Company-wide manner. We have set up three subcommittees for formulating and driving polices on their initiatives andestablished the Sustainability Committee as a higher-level organization that monitors them.
[Sustainability promotion system]
Board of Directors
Business execution system
Managing Director/Executive Officers
President

Promotion of acquisition of
ISO 14001 certification
Promotion of disclosures
based on TCFD
recommendations
Promotion of paperless
operations

Workstyle reform
Utilization of Group humanresources
Promotion of active participationof women, etc.

Management quality
improvement
Social contribution
SDG Support Fund
BCP, etc.

Internal Audit Office

People-oriented
management

Export Control Committee

Environmental
measures

Compliance Managing Office

Corporate Management Meeting

Sustainability Committee
Chair: President
Members: Officers in charge (Planning, Sales, and Administration),
General Manager of Corporate Planning Dept.

Business operation division (business locations, head office organizations, subsidiaries, etc.)(As of October 1, 2023)

46

9. Topic (2)Identifying Materiality
Business sustainability aims to contribute to the realizationof a sustainable society, and embodies the basic
sustainability policy. In order to promote management, wehave identified four themes and 12 important issues asmateriality.

47

9. Topic (3)A capital and business alliance agreement signed between Seika
Daiya Engine Co., Ltd., a Seika Group company, and Eight Knot Inc.
Driving DX with AI-based autonomous navigation of small ships
 Solving safety-related issues faced by customers, with a focus on small business boats (including fishing boats,commercial and industrial boats, and passenger boats) Helping overcome the shortage of seafarers and successors in the fisheries industry, which is expected to grow more
seriousHighly unique autonomous
navigation technologies
for small ships
Eight Knot Inc.
Location:

A sales and service network formarine products, consisting of
25 locations across Japan
Eight Knot Inc. is a start-up that develops autonomous navigation(Head Office) 130 Nagasonecho, Kita-ku, Sakai-shi,
Osakatechnologies for ships under a mission: Creating paths in theBusiness:

Development of autonomous navigation systems foraquatic mobility

The Company has developed Eight Knot AI Captain, an

Capital:28,050,000 yen

tonnage below 20 tons) and is introducing it to existing ships as a

Established:

March 8, 2021

function assisting automatic ship handling.

ocean by making various types of aquatic mobility autonomous.
autonomous navigation platform for small ships (ships with total48

9. Topic (4) Publish Integrated Report Company information session held for private investors

We adopted VIORB 2030, a new long-term management vision, in the previous fiscal
year. This fiscal year, the Medium-term Management Plan VIORB 2030 Phase 1 waslaunched, and operations related to nuclear power generation, which we position as oneof our future mainstay businesses, also commenced.
Having reached the turning point of our growth strategy, which aims to enable us toachieve sustainable growth, we have published our first integrated report for showing
the overall picture of the Group’s values and new strategies.
This fiscal year, we began to hold regular online company information sessions forindividual investors, in addition to financial results briefings for institutional investors that
we were already holding.

Integrated Report

We will continue to enhance the content, including both financial andnon-financial information, by positioning them as communication tools
for constructive dialogues with invertors and shareholders, aiming to tellthem our value creation stories.

Corporate briefings for individual investors49

10. Coping with Climate Change【Promotion of green innovation-related products】
The company is promoting the deployment and expansion of “green innovation-related products” to help
customers reduce GHG emissions, and our transaction results for FY ended March 31, 2022 are shown below.
Transactions handled for green innovationrelated products in FY ended March 31, 2022

Results
The figures in ( ) show thepercentage year-on-year changes.
FY2022

Products for energy and resources conservationand increased efficiency

85,800 million yen (+10%)

Products to prevent pollution

9,700 million yen (+61%)

Products for recycling and reuse

1,000 million yen (+11%)

Total

96,500 million yen (+14%)

TargetFY2026

FY2030180,000 million yen

200,000 million yen【CO2 emissions of Seika Corporation (alone)】
The CO2 emissions of Seika Corporation (alone) are shownin the figure. In the future, we will promote the acquisitionof Scope 1 and 2* greenhouse gas (GHG) emissions ofGroup companies, and quickly disclose the GHG emissions
and reduction targets for the Group as a whole. In addition,
we will promote information sharing with suppliers in the
supply chain and make efforts to acquire Scope 3 GHG
emissions for the Group.
*

Scope 1：Direct GHG emissions produced by our own business (fuel combustion, industrial process)Scope 2：Indirect emissions related to the use of electricity, heat, and steam provided by other companies
Scope 3：Indirect emissions beyond Scopes 1 and 2 (emissions by other companies related to business activities)
50

11. Social Contribution Activities in Recent Years[Activities to revitalize and support local communities]
 Donation to the red feather community chest

We donated calendars
and notebooks.
We boxed them carefully
to prevent damage.

 Donation to the Japan Red Cross Society
 Donation to Kainaniji Ikueikai
 Donation of surplus calendars and notebooks (Foodbank Tama) Donation of disaster supplies (FUKUSHIMA Inochi-no Mizu, an NPO) Participation in Marunouchi Kirapika Sakusen (neighborhood clean up)
 Support for employees’ participation in volunteer activities

We participated in
Marunouchi Kirapika Sakusen(neighborhood cleanup).

[Humanitarian aid activities]
 Donation to A Dream A Day in Tokyo, activities for supporting children with intractable diseases
 Support for Furugi de Vaccine
 Collection of PET-bottle caps
(Japan Committee, Vaccines for the World’s Children) Collection and donation of used stamps(Japan Overseas Christian Medical Cooperative Service)
We donated used stamps.
As many as three cardboard boxes ofused stamps were collected.
5152