Nittoseiko : Supplementary materials（566kb）

Quarterly Report Q2 for the fiscal year

ending December 2023

Aug 10th, 2023

Nittoseiko Co., Ltd.

（Issue code: Tokyo Stock Exchange Prime 5957）

March 2022:

Selected as a Health Management Brand for the second consecutive year.

March 2022: Selected as a Nadeshiko Brand for the first time.

1

Highlight of Q2 consolidated result

for the fiscal year ending December 2023

		Q2 fiscal year 2022		Q2 fiscal year 2023		YoY
	Unit: Million yen / %
		Amount	Ratio (%)		Amount		Ratio (%)		Amount	% Change
					change
	Net sales		100.0		22,447		100.0		1,557		7.5
	20,890
	Gross profit	4,764	22.8		5,117		22.8		353		7.4
	Selling, general and administrative	3,732	17.9		3,818		17.0		86		2.3
	expenses
	Operating income	1,032	4.9		1,298		5.8		266		25.9
	Ordinary income	1,270	6.1		1,476		6.6		205		16.2
	Net income for current period before	1,612	7.7		1,494		6.7		△117		△7.3
	income taxes
	Net income attributed to shareholders of	996	4.8		833		3.7		△162		△16.3
	the parent company
	Net income per share (yen)	26.97			22.57

●Sales increased 7.5% YoY due to strong sales of fastener products for the automobile-related industry and the housing and construction industry, as well as the consolidation of KM Seiko Co., Ltd. and Pinning Co., Ltd. as subsidiaries in April last year.

●Profit increased 25.9% YoY due to sales price revisions and unified efforts to reduce costs in manufacturing and sales, despite a hike in parts prices due to soaring costs of resources and raw materials.

●Despite firm sales in Southeast Asia, orders were sluggish overseas due to the slowdown of the U.S. and Chinese economies, and sales remained flat.

2

Net Sales and Operating Income by Segment (Consolidated)

(Unit: Million yen / %)		Q2 fiscal year	Q2 fiscal year	YoY
	2022	2023	Amount change	% Change
	Net sales	15,226	16,260	1,034	6.8
Fastener	Operating	434	800	365	84.0
income
	Profit ratio	2.9	4.9
	Net sales	3,070	3,453	382	12.5
Assembly Machine	Operating	571	481	△89	△15.7
income
	Profit ratio	18.6	13.9
	Net sales	2,588	2,720	131	5.1
Control System	Operating	73	69	△3	△5.4
income
	Profit ratio	2.9	2.6
	Net sales	4	13	8	182.9
Medical	Operating	△47	△52	△４	-
income
	Profit ratio	-	-
（Million Yen）	Change in net sales by	（Million Yen）	Change in operating income
	segment			by segment

3

Overview of results by segment - Fastener Division

Unit: Mil yen/ %

FY2022	FY2023	YOY
Q2	Q2
Amount	Amount Amount % Change

◆Automobile

・Despite production adjustments by customers due to material shortages, demand remained strong for "GIZATITE," "ALUMITITE," "CP GRIP," "washer-embedded screws," and "precision

Net sales	15,226	16,260	1,034	6.8
	Automobile	5,368	6,147	778	14.5
	Housing and	3,055	3,691	636	20.8
	construction
	Electrical and	2,775	2,387	△388	△14.0
	electronic parts
	Household	1,112	1,243	131	11.8
	goods
	IT and digital	755	627	△127	△16.9
	equipment
	Precision	552	535	△17	△3.1
	equipment
	Medical	166	142	△23	△14.1
	Energy sector	70	90	19	28.1
	Others	1,373	1,398	25	1.8
Operating Income	434	800	365	84.0

・Both sales and profit increased due to strong demand in the mainstay automobile, housing and construction sectors, as well as the effect of transferring prices to customers.

・Overseas, demand in Indonesia remained strong.

pressed products" for EVs, ECUs, batteries, sensors, and electrification, as well as the new "JOISTUD" series, which contributes to lighter and thin plated vehicles.

◆Housing and construction

・Demand for fastening parts for construction, such as "drill screws" and "nuts," remained strong. In addition, future growth is expected with the launch of the new product "SHARECROSS".

◆Electrical and electronic parts

・Demand remained sluggish due to the significant impact of material shortages. ◆Household goods

・Despite a slowdown in domestic stay-at-home demand from the Corona disaster, sales remained strong due to increased overseas sales (China and Taiwan).

4

Overview of results by segment - Assembly Machine Division

Unit: Mil yen/ %

FY2022	FY2023	YOY
Q2	Q2
Amount	Amount Amount % Change

◆Automobile

・Although there were many inquiries for CASE/EV-related equipment, equipment modifications to incorporate new vehicle models, and automation equipment to alleviate

Net sales	3,070	3,453	382	12.5
	Automobile	1,954	1,826	△128	△6.6
	Electrical and	209	711	502	240.0
	electronic parts
	Amusement	55	206	151	277.1
	machine
	IT and digital	98	139	41	42.2
	equipment
	Housing and	47	104	57	122.5
	construction
	Energy sector	165	99	△66	△40.0
	Household	23	10	△12	△54.9
	goods
	Others	519	358	△162	△31.3
Operating income	571	481	△89	△15.7

・In addition to the continuing strong demand from the electrification and other business domains, the recent labor shortages in various fields have contributed to strong sales. However, despite the strong performance, profits decreased due to the effects of soaring raw material prices. The Company is committed toward generating profits, including price pass-through.

・Overseas, demand was strong in Thailand and Taiwan.

labor shortages, demand for screw fastening equipment remained sluggish due to a decline in capital investment as a result of soaring raw material prices.

◆Electrical and electronic parts ・Significant YoY increase due to acquisition of a large project for substrate plating equipment, and other factors. ◆Amusement machine

・Sales increased significantly due to large orders for "assembly lines" and "screw robots" for the production of new models.

◆IT and digital equipment

・Strong sales due to special demand related to smartphones.

◆Housing and construction

・Demand for labor-saving equipment remained strong.

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