Nittoseiko : Quarterly Report Q2 for the fiscal year ending December 2022

Quarterly Report Q2 for the fiscal year

ending December 2022

Aug 8th, 2022

Nittoseiko Co., Ltd.

（Issue code: Tokyo Stock Exchange Prime 5957）

March 2022:	March 2022:
Selected as a	Selected as a
Health	Nadeshiko
Management
Brand for the	Brand for the
second	first time.
consecutive year.

1

Highlight of Q2 consolidated result

for the fiscal year ending December 2022

	Q2 fiscal year 2021	Q2 fiscal year 2022	YoY
Unit: Million yen / %
	Amount	Ratio (%)	Amount	Ratio (%)	Amount	% Change
	change
Net sales	20,252	100.0	20,890	100.0	637		3.1
Gross profit	5,275	26.0	4,953	23.7	△321		△6.1
Selling, general and administrative	3,393	16.8	3,732	17.9	338		10.0
expenses
Operating income	1,881	9.3	1,221	5.8	△660		△35.1
Ordinary income	2,010	9.9	1,459	7.0	△550		△27.4
Net income for current period before	2,131	10.5	1,449	6.9	△682		△32.0
income taxes
Net income attributed to shareholders of	1,231	6.1	833	4.0	△398		△32.4
the parent company
Net income per share (yen)	33.41		22.56

●Although affected by production adjustments in the main customers in the automobile-related industry, sales increased YoY due to contributions from KM Seiko Co., Ltd. and Pinning Co., Ltd., which became subsidiaries in April this year.

• Profit decreased YoY due to soaring raw material prices and logistics costs, as well as parts shortages.
• Overseas, production recovered mainly in Southeast Asia, despite the impact of lockdowns in China. The weak yen also contributed to higher sales YoY.

2

Net Sales and Operating Income by Segment (Consolidated)

(Unit: Million yen / %)	Q2 fiscal year	Q2 fiscal year		YoY
2021	2022	Amount change	% Change

	Net sales	13,985	15,226	1,240	8.9
Fastener	Operating	894	624	△270	△30.2
income
	Profit ratio	6.4	4.1
	Net sales	3,690	3,070	△619	△16.8
Assembly Machine	Operating	944	571	△372	△39.5
income
	Profit ratio	25.6	18.6
	Net sales	2,552	2,588	36	1.4
Control System	Operating	47	73	25	54.0
income
	Profit ratio	1.9	2.9
	Net sales	23	4	△19	△80.5
Medical	Operating	△4	△47	△43	―
income
	Profit ratio	△19.9	△1,038.6

（Million Yen）	Change in net sales by	（Million Yen） Change in operating income
	segment	by segment

3

Overview of results by segment - Fastener Division

		FY2021	FY2022		YOY
		Q2	Q2
Unit: Mil yen/ %
		Amount	Amount	Amount		% Change
Net sales	13,985	15,226	1,240		8.9
	Automobile	5,366	5,368	2		0.0
	Housing and	2,278	3,055	776		34.1
	construction
	Electrical and	2,611	2,775	164		6.3
	electronic parts
	Household	1,198	1,112	△85		△7.2
	goods
	IT and digital	653	755	101		15.5
	equipment
	Precision	515	552	37		7.2
	equipment
	Medical	143	166	22		16.0
	Energy sector	86	70	△16		△18.8
	Others	1,135	1,373	238		21.0
Operating Income	894	624	△270		△30.2

・As a result of the addition of "KM Seiko Co., Ltd." and "Pinning Co., Ltd." to our group in April this year, sales remained steady YoY.

・Overseas, screw products related to IT and information equipment generally performed well.

◆Automobile

・Demand for EV-related products, such as AKROSE products and gear parts, were strong, but production adjustments due to shortages of semiconductors and other materials had a significant impact, resulting in flat YoY growth. ◆Housing and construction

・Demand for screw products for housing equipment remained strong and increased significantly YoY.

◆Electrical and electronic parts

・Demand for screw products, including home appliances, remained strong.

◆Household goods

・Sales of screw products for game devices remained sluggish due to planned production cutbacks caused by the shortage of semiconductors and other factors.

◆IT and digital equipment

・5G communication-related developments were active, and demand for related parts grew strongly.

4

Overview of results by segment - Assembly Machine Division

	FY2021	FY2022	YOY
	Q2	Q2
Unit: Mil yen/ %
Amount	Amount Amount % Change

Net sales	3,690	3,070	△619	△16.8
	Automobile	1,922	1,954	32	1.7
	Electrical and	630	209	△421	△66.8
	electronic parts
	Energy sector	511	165	△345	△67.6
	IT and digital	85	98	12	15.1
	equipment
	Amusement	23	55	32	141.0
	machine
	Housing and	55	47	△8	△15.1
	construction
	Household	12	23	11	95.2
	goods
	Others	452	519	67	15.0
Operating income	944	571	△372	△39.5

・Sales were down 16.8% YoY due to soaring material prices and difficulty in obtaining materials.

・Overseas, the Company participated in an international trade fair (Germany) for the first time and developed measures to expand sales and expects growth in the future.

◆Automobile

・Demand remained flat due to many inquiries for manufacturing equipment such as EV and ECU related equipment.

◆Electrical and electronic parts

・Demand for semiconductor equipment has been strong since last year, but demand from major users this quarter was limited due to last year's investments. As a result, the demand declined significantly YoY.

◆Energy sector

・In response to last year's reaction to special demand related to gas meters, the year-on-year decrease was substantial.

◆IT and digital equipment

・Demand remained strong for telecommunication bases and other related products.

◆Amusement machine

・Significant YoY increase due to steady demand for renewal of manufacturing facilities and other factors.

5