１．Summary of Business Results for the 116th Fiscal Year Ending Dec 2021

February 14, 2022

NITTOSEIKO CORPORATION (Securities Code: 5957, TSE 1st Section)

1

Financial Highlights116th Fiscal Year Ending Dec 2021 (Consolidated)

Year ending Dec.

Year ending Dec

Year ending Dec 2021

YoY comparison

Compared to forecast

2020

2021

Unit: Million yen / %

(as of Nov. 10, 2021)

Amount

Ratio

Amount

Ratio

Amount

%

Forecast

Amount

%

(%)

(%)

change

Change

amount

change

Change

Net sales

32,904

100.0

40,518

100.0

7,614

23.1

41,000

△481

△1.2

Gross profit

7,640

23.2

10,285

25.4

2,644

34.6

Selling, general and

6,337

19.3

7,035

17.4

698

11.0

administrative expenses

Operating income

1,303

4.0

3,249

8.0

1,945

149.3

3,200

49

1.6

Ordinary income

1,418

4.3

3,487

8.6

2,069

145.9

3,300

187

5.7

Net income for current

1,359

4.1

3,606

8.9

2,246

165.2

period before income taxes

Net income attributed to

shareholders of the parent

764

2.3

2,200

5.4

1,435

187.7

2,000

200

10.0

company

Net income per share (yen)

20.78

59.63

54.15

  • Sales grew in most business segments, including automobile and electrical and electronic parts. Sales increased by 23.1% y-o-y, surpassing the record high of 40 billion yen.
  • We focused on utilizing digital technology and improving productivity and cost efficiency. Operating income increased by approx. 2.5 times from the same period of the previous year.
  • In addition to Indonesia, where an integrated screw production system was established in May last year, sales at local subsidiaries in Taiwan, China and other countries were strong, reflecting the recovery of the global economy.
  • Sales of screw components were strong due to increased demand in products such as game machines (stay-at-home product),

power tools, and bicycles (social distancing product).

  • The assembly machine business, including screw tightening machines, is on a recovery track due to increased demand for new production lines and large-scale facilities for CASE and EV-related products.
  • Sales of analytical instruments etc. were strong at consolidated subsidiary Nittoseiko Analytech Co. Contributed to sales increase.

Net Sales and Operating Income by Segment (Consolidated)

(Unit: Million yen / %)

Year ending Dec

Year ending Dec

YoY comparison

2020

2021

Amount change

% Change

Net sales

23,366

27,896

4,530

19.4

Fastener

Operating

557

1,545

988

177.1

income

Profit ratio

2.4

5.5

Net sales

5,454

7,182

1,727

31.7

Assembly Machine

Operating

911

1,608

696

76.4

income

Profit ratio

16.7

22.4

Net sales

4,010

5,416

1,405

35.0

Control System

Operating

△164

156

321

－

income

Profit ratio

△4.1

2.9

Net sales

73

23

△49

△67.5

Medical

Operating

△1

△61

△59

－

income

Profit ratio

△2.1

△256.3

（Million Yen）

Change in net sales by

（Million Yen）

Change in operating income

segment

by segment

3

Overview of results by segment - Fastener Division

Year

Year

ending

ending

YOY comparison

Dec

Dec

Unit: Mil yen/ %

2020

2021

Amount

Amount

Amount

%

Change

Net sales

23,366

27,896

4,530

19.4

Automobile

8,759

10,287

1,529

17.4

Electrical and

3,816

4,971

1,155

30.3

electronic parts

Housing and

4,116

4,752

635

15.5

construction

Household

2,101

2,825

723

34.5

goods

IT and digital

1,090

1,232

142

13.0

equipment

Precision

1,159

1,080

△78

△6.8

equipment

Medical

279

349

70

25.1

Energy sector

202

131

△70

△35.1

Others

1,844

2,269

424

23.0

Operating Income

557

1,545

988

177.1

・Despite a backdrop of production cutbacks due to a shortage of semiconductors, sales of precision screws increased due to increased demand for game machines, PCs, and other home devices from the pandemic. Sales of general screws for automotive ECUs were also strong due to the evolution of electronic controls.

◆Automobile

・Strong sales of anti-loosening screws such as "GIZA TITE" and "ALUMITITE", and screws with embedded washers for ECU boards, mainly for EV and battery- related applications.

◆Electrical and electronic parts

・Demand for home appliances is rising as the stay-at-home lifestyle becomes established. Sales of screw products for home appliances increased significantly. ◆Housing and construction

・Sales of screw products for housing equipment contributed amid firm housing demand.

◆Household goods

・Special stay-at-home demand. Sales of precision screws for game machines and power tools increased significantly.

◆IT and digital equipment

・Semiconductor shortages continue, but screw products for PCs and smartphones are strong thanks to the trend of remote working.

4

Overview of results by segment - Assembly Machine Division

Year

Year

ending

ending

YOY comparison

Dec

Dec

Unit: Mil yen/ %

2020

2021

Amount

Amount

Amount

%

Change

Net sales

5,454

7,182

1,727

31.7

Automobile

3,722

4,293

571

15.3

Electrical and

612

924

311

51.0

electronic parts

Energy sector

147

634

486

331.3

Housing and

180

314

134

74.4

construction

IT and digital

78

139

61

78.2

equipment

Household

13

61

47

369.2

goods

Game

85

54

△31

△36.5

machines

Medical

52

6

△46

△88.5

Others

565

757

191

34.0

Operating income

911

1,608

696

76.4

・On track for recovery due to continued strong demand for CASE-related products, IT-related demand, and large-scale facilities for specific users. Sales increased 31.7% y-o-y.

・Overseas, sales increased due to increased orders for production facilities for new vehicle models, new energy vehicles, and IT-related products.

◆Automobile

・Investments in new production lines and large-scale facilities for CASE-related and EV- related products were strong.

・The U.S., China, South Korea, and Thailand made significant contributions due to increased demand for new vehicle models and new energy vehicles, etc., for which capital investment is active.

◆Electrical and electronic parts

  • Demand for production facilities for home appliances and other products increased significantly as stay-at-home lifestyle becomes established.
    ◆Energy sector
    ・Demand for gas meter-related production and inspection facilities increased significantly.
    ◆Housing and construction
    ・Demand for heating systems and other facilities increased, and sales continued to increase substantially.
    ◆IT and digital equipment
    ・Although demand for HDD-related products and telecommunication base station- related products was sluggish due to semiconductor shortages, demand for smartphone-related products increased.

5

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Nitto Seiko Co. Ltd. published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2022 08:13:01 UTC.