Slides
Page 1
Financial Results Briefing for the First Half of the Fiscal Year Ending March 31, 2026 SEIKA CORPORATION (TSE Prime Market: 8061)
Page 2
2 CONTENTS ― Reference Materials ― 1. Financial Summary 2. Summary of Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2026 3. Illustration of Achievement of Operating Profit Targets of Long-Term Management Vision 4. Consolidated Forecast for the Fiscal Year Ending March 31, 2026 5. Topics of Interest in Dialogue with Shareholders and Investors
Page 3
3 CONTENTS ― Reference Materials ― 1. Financial Summary 2. Summary of Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2026 3. Illustration of Achievement of Operating Profit Targets of Long-Term Management Vision 4. Consolidated Forecast for the Fiscal Year Ending March 31, 2026 5. Topics of Interest in Dialogue with Shareholders and Investors
Page 4
4 Transaction value: 132.55 billion yen (down 21.12 billion yen YoY) Net sales: 51.83 billion yen* (up 7.32 billion yen YoY) * For the distributor business, net fees alone are posted. Operating profit: 3.26 billion yen (up 0.34 billion yen YoY) • Both net sales and operating profit increased, thanks to continuing strong performance by the Energy Business and recovering performance in the Industrial Machinery Business. Profit attributable to owners of parent: 3.12 billion yen (down 1.90 billion yen YoY) • Profit attributable to owners of parent fell, reflecting a YoY drop in gains on sale of cross-shareholdings and the recording of 489 million yen in provision for loss on litigation as an extraordinary loss. Order backlog: 72.33 billion yen (up 4.78 billion yen YoY) Dividend forecast: Financial Summary (Billion yen) 153.68 132.55 Transaction value 2025/3 1H 2026/3 1H 44.51 51.83 Net sales 2025/3 1H 2026/3 1H 67.55 72.33 Order backlog 2025/3 1H 2026/3 1H 54.80 57.40 Amount of orders received 2025/3 1H 2026/3 1H 2.92 3.26 Operating profit 2025/3 1H 2026/3 1H 5.02 3.12 Profit attributable to owners of parent 2025/3 1H 2026/3 1H 1H end Year-end FY2026/3 Yen 110.00 Yen FY2026/3 (projected) 37.00 • We executed a three-for-one share split effective October 1, 2025. Accordingly, projected year-end dividends for FY2026/3 (projected) are 37 yen after reflecting the effects of this split. * Year-end dividends for FY2026/3 (projected) without reflecting the effects of the share split would be 111 yen, for annual dividends of 221 yen. Annual dividends in the previous year were 220 yen.
Page 5
5 CONTENTS ― Reference Materials ― 1. Financial Summary 2. Summary of Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2026 3. Illustration of Achievement of Operating Profit Targets of Long-Term Management Vision 4. Consolidated Forecast for the Fiscal Year Ending March 31, 2026 5. Topics of Interest in Dialogue with Shareholders and Investors
Page 6
6 Summary of Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2026 2025/3 1H Results 2026/3 1H Results YoY Transaction value 153.68 billion yen 132.55 billion yen -13.7 % Net sales 44.51 billion yen 51.83 billion yen 16.4 % Operating profit 2.92 billion yen 3.26 billion yen 11.7 % Ordinary profit 4.26 billion yen 3.76 billion yen -11.8 % Profit attributable to owners of parent 5.02 billion yen 3.12 billion yen -37.9 % Amount of orders received 54.80 billion yen 57.40 billion yen 4.7 % Order backlog 67.55 billion yen 72.33 billion yen 7.1 %
Page 7
7 25.62 billion yen 31.78 billion yen受注高 Progress on Consolidated Performance 0 25 50 75 100 四半期純利 益 経常利益 営業利益 売上高 1Q 2Q 3Q 4Q 25.56 billion yen 1.59 billion yen 1.79 billion yen 1.78 billion yen Progress (%) 49.3% 49.3% 52.5% 51.5% Result 通期予想 51.83 105.0 3.26 6.6 3.76 7.15 3.12 6.05 57.40 ― 26.26 billion yen 1.67 billion yen 1.96 billion yen 1.33 billion yen Net sales Operating profit Ordinary profit Amount of orders received Profit attributable to owners of parent Full-year forecast (Billion yen)
Page 8
8 Scope of Consolidation NIPPON DAIYA VALVE CO., LTD. Equity method affiliate companies Seika Daiya Engine Co., Ltd. Shikishimakiki Corporation Seika Digital Image CORPORATION Meinan Kyodo Energy Co., Ltd. Tsurumi (Europe) GmbH Shipyard Tanaka Co., Ltd. Energy Business Industrial Machinery Business Product Business SEIKA SHANGHAI Co., LTD SEIKA MACHINERY ,INC. Seika Sangyo GmbH Seika Sangyo (Thailand) Co., Ltd. SEIKA SANGYO (VIETNAM) COMPANY LIMITED FORMOSA SEIKA CORPORATION Parent Consolidated subsidiaries (domestic and overseas) S-TEC CO., LTD. TEN FEET WRIGHT INC. Group TVE Co. Ltd.
Page 9
9 Consolidated Balance Sheet 2025/3 2026/3 1H Total assets 121.88 Total liabilities 72.32Current assets 94.82 Non-current assets 27.06 Non-current liabilities 5.65 Net assets 49.56 Current liabilities 66.66 (Billion yen) 124.15 216.55 168.12 2024/3 2025/3 2026/3 EPS (earnings per share) 45.6 53.2 73.1 1.06 1.10 1.45 -0.3 0.2 0.7 1.2 1.7 2.2 0 10 20 30 40 50 60 70 80 2024/3 2025/3 2026/3 1H Market capitalization and PBR Market capitalization (billion yen) PBR (times) Share price at the end of September 1,978 yen yen yen yen Share price at FY end 1,440 yen Share price at FY end 1,235 yen * We executed a three-for-one share split effective October 1, 2025. EPS has been adjusted accordingly. Total assets 129.53 Current assets 105.83 Non-current assets 23.69 Non-current liabilities 4.74 Net assets 47.66 Current liabilities 77.11 Total liabilities 81.86 (Billion yen) (Forecast)
Page 10
10 -2.47 -3.01 -0.13 16.77 1.59 -1.76 Cash Flows 2025/3 1H 2026/3 1H Change CF from operating activities 2.67 -0.88 -3.55 CF from investing activities 1.09 -3.01 -4.11 CF from financing activities -1.53 -1.76 -0.23 Cash and cash equivalents at end of period 13.14 10.97 -2.17 Free CF* 3.77 -3.90 -7.67 Depreciation 0.31 0.34 +0.03 Decrease in borrowings -0.15 -0.006 +0.14 Dividend payments -1.08 -1.56 -0.48 Major items in net cash provided by (used in) investing activities Purchase of investment securities ― -2.59 -2.59 Purchase of shares of associates -1.81 ― 1.81 Proceeds from sale of property, plant and equipment 0.005 0.015 +0.01 Other -0.07 -0.03 +0.04 Operating CF Investing CF Financing CF CF from operating activities (profit) CF from investing activities Other Cash and cash equivalents at beginning of fiscal year Income taxes CF from financing activities Cash and cash equivalents at end of period (* A total of cash flows from operating activities and those from investing activities) Net cash provided by investing activities decreased by 3.01 billion yen YoY due to a 2.59 billion yen cash outlay to acquire shares in Tokyo Sangyo. We made progress on sale of cross-shareholdings, which accounted for 18.47% of consolidated net assets as of September 30, 2025. (Billion yen) (Billion yen) Waterfall analysis of cash and cash equivalents at end of period 10.97
Page 11
11 Waterfall Analysis of Profit Attributable to Owners of Parent (2025/3 1H vs 2026/3 1H) 0.78 -0.44 -0.84 -1.68 0.27 0.01 Profit attributable to owners of parent 2025/3 1H Gross profit SG&A expenses Non-operating profit (expenses) Extraordinary income and losses Income taxes Profit attributable to non-controlling interests Profit attributable to owners of parent 2026/3 1H - 1.90 5.02 3.12 Gross profit increased by 780 million yen. On the other hand, net income for the profit decreased due to the recognition of negative goodwill in the previous period, lower gains on the sale of policy-held shares, and the recognition of 489 million in litigation-related loss provisions as extraordinary losses. (Billion yen)
Page 12
12 Trend Over the Last Three Years * EPS has been adjusted to reflect the three-for-one share split effective October 1, 2025. 5 (Million yen) (Million yen) (Million yen)Transaction value Net sales Operating profit Amount of orders received Profit attributable to owners of parent Earnings per share Total assets/Net assets Equity ratio (Million yen) (Million yen) (Million yen) (Yen) (%)Full year1H Full year1H Earnings per share Full year1H 1H Full year (Forecast) Total assets Net assets Equity ratio 2024/3 2025/3 2026/3 2024/3 2025/3 2026/3 2024/3 2025/3 2026/3 2024/3 2025/3 2026/3 2024/3 2025/3 2026/3 2024/3 2025/3 2026/3 (Forecast) Full year1H Full year1H Full year1H (Forecast) (Forecast) (1H) (1H)
Page 13
13 Business Summary by Segment for the First Half of the Fiscal Year Ending March 31, 2026
Page 14
14 Business Summary by Segment Net sales Segment profit (*1) 2025/3 1H Results 2026/3 1H Results YoY 2025/3 1H Results 2026/3 1H Results YoY Energy Business 16.98 19.09 +12.4% 2.64 (*2) 1.68 1.58 -39.8% (*2) -5.7% Industrial Machinery Business 11.59 17.65 +52.2% -0.16 0.23 Turned a profit. Product Business 15.93 15.08 -5.3% 1.57 1.75 +11.4% *1 Beginning this term, amounts shown for segment profit have changed from operating profit to operating profit adjusted by share of (profit) loss of entities accounted for using the equity method, in consideration of profit/loss of equity method affiliates. The prior term’s results reflect the figures for TVE and Fenwal Controls of Japan, which are equity-method affiliates, having been reclassified from the Product Business to the Energy Business. *2 Amount shown does not include negative goodwill of 950 million yen on making Fenwal Controls of Japan an equity-method affiliate last year. Net sales increased due to steady delivery of scheduled maintenance at nuclear power plants in the Kansai region and thermal power plant equipment in the Kyushu region. Profits declined by 39.8% with the handover of major thermal power plant equipment and recording of negative goodwill on making a subsidiary an equity method affiliate last year. (Profits declined by 5.7%, excluding the previous year’s negative goodwill.) Energy Business Net sales and profit both increased with improved performance from the progress of delivering major orders for equipment such as manufacturing equipment for film manufacturers and equipment to lessen environmental impact. Industrial Machinery Business Looking at Seika Corporation on a non-consolidated basis, net sales decreased due to the absence of the large-scale project deliveries made in the previous term. At the same time, profit increased with strong performance of consolidated subsidiaries such as Nippon Daiya Valve and Tsurumi (Europe) GmbH. Product Business 15.93 15.08 11.59 17.65 16.98 19.09 2025/3 1H 2026/3 1H 1.57 1.75 - 0.16 0.23 2.64 1.58 2025/3 1H 2026/3 1H (Billion yen) (Billion yen)
Page 15
15 0 25 50 75 100 Progress by Quarter by Segment [Net sales] [Segment profit] Energy Business Industrial Machinery Business Product Business 1Q Result 通期予想 19.09 36.0 17.65 34.0 15.08 35.0 7.44 billion yen 10.91 billion yen 7.20 billion yen 0.72 billion yen 1.04 billion yen Result 通期予想 1.58 3.1 0.23 0.2 1.75 3.5 Energy Business Industrial Machinery Business Product Business 11.65 billion yen 6.74 billion yen 7.88 billion yen 53.0% 51.9% 43.0% 2Q 0.86 billion yen 0.71 billion yen 50.9% 50.0% 0.009 billion yen 0.22 billion yen Progress (%) 115.0% Full-year forecast (Billion yen) Full-year forecast (Billion yen)
Page 16
16 Order backlog Amount of orders received Sales Order backlog 2024/3 2025/3 1H 2025/3 2026/3 1H Energy Business 24.40 26.85 25.17 23.92 19.09 30.00 Industrial Machinery Business 19.30 26.76 28.00 17.54 17.65 27.90 Product Business 13.55 13.94 13.58 15.93 15.08 14.42 Total 57.26 67.55 66.76 57.40 51.83 72.33 Order Backlog by Segment (Billion yen)
Page 17
17 5.12 4.99 0.87 0.81 0.0 2.5 5.0 7.5 10.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2025/3 1H 2026/3 1H Net sales Operating profit 3.55 4.12 0.42 0.60 0 1 2 3 4 5 6 7 11 16 21 26 31 36 41 46 2025/3 1H 2026/3 1H Net sales Operating profit Performance of Major Consolidated Subsidiaries * unconsolidated figures(Billion yen) @162.62 (as of September) Euro TTM middle rate @164.83 3.79 3.87 0.16 0.22 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2025/3 1H 2026/3 1H Net sales Operating profit 2.08 1.68 0.08 0.12 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 0.0 5.0 10.0 15.0 20.0 25.0 2025/3 1H 2026/3 1H Net sales Operating profit (5.3 million euros) (31.1 million euros) (5.0 million euros) (30.6 million euros) (Billion yen) (Billion yen) (Billion yen) Tsurumi (Europe) GmbH Group Despite lower sales of compact pumps due to low precipitation this term, performance was strong due to strong sales of large pumps for mine and infrastructure construction. Net sales and profit increased with higher sales of maintenance services and revisions to selling, general, and administrative experiences. Net sales and profit increased YOY in the first half due to a major shipment in the first quarter. Full-year results are expected to be weighted toward the first half. Sales of a major data center project were recorded in the first half of last year. Profit margins increased in the first half of this year due to strong performance of maintenance contracts for marine and land-based engines. NIPPON DAIYA VALVE CO., LTD. Shikishimakiki Corporation Seika Daiya Engine Co., Ltd.
Page 18
18 CONTENTS ― Reference Materials ― 1. Financial Summary 2. Summary of Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2026 3. Illustration of Achievement of Operating Profit Targets of Long-Term Management Vision 4. Consolidated Forecast for the Fiscal Year Ending March 31, 2026 5. Topics of Interest in Dialogue with Shareholders and Investors
Page 19
19 Illustration of Achievement of Operating Profit Targets of Long-Term Management Vision 19 Organic business growth 6%/year 8.5 billion yen Nonorganic business initiatives 3.5 billion yen Organic business growth 6%/year FY2026 Medium-Term Management Plan 7.0 billion yen FY2030 Long-Term Management Vision targets 12.0 billion yen Building a new revenue base and businesses Business investment through financial leverage using our healthy balance sheet (earning a long- term JCR issuer rating of A-) Seeking opportunities in fields in which we are knowledgeable instead of entering brand new fields Enhancing the revenue base in existing businesses Further promote complementary M&As with customers that offer business synergies, such as TVE Co., Ltd. and Fenwal Controls of Japan, Ltd. that deliver business synergies, expanding our revenue base. (targeting equity method profit and profit from business synergies) Targeting fields related to the Industrial Machinery Business and the Product Business in addition to the Energy Business FY2025 full-year forecast 6.6 billion yen Long-Term Management Vision “VIORB 2030”Medium-Term Management Plan “VIORB2030 Phase 1” Organic business growth 6%/year
Page 20
20 1.46 0.88 1.57 1.29 1.68 1.11 FY2023/5 FY2024/5 FY2025/5 14.77 13.9014.16 Nonorganic Business Initiatives Making Asahi Sunac Corporation a subsidiary Location Owariasahi, Aichi Prefecture Lines of business Development, manufacture, sale, and service of coating machinery, high-pressure manufacturing machinery, precision cleaning and coating equipment Capital 255 million yen Founded July 17, 1942 Date of concluding contract October 27, 2025 Date of share transfer December 1, 2025 (planned) Nonorganic business initiatives 3.5 billion yen FY2030 Long-Term Management Vision target 12.0 billion yen Background of making Asahi Sunac Corporation a subsidiary Existing ties between the companies, which have established joint ventures in Thailand and Germany Asahi Sunac’s products’ industry-leading market shares and stable cash flows Expected synergies Growing overseas sales channels using Seika’s international network in Thailand, Germany, and elsewhere Potential opportunity to enter the automotive market, with which we have few connections, since its main customers are in that industry Referral to existing customers, proposals to the coating business Net sales Operating profit Profit attributable to owners of parent (Billion yen)
Page 21
21 CONTENTS ― Reference Materials ― 1. Financial Summary 2. Summary of Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2026 3. Illustration of Achievement of Operating Profit Targets of Long-Term Management Vision 4. Consolidated Forecast for the Fiscal Year Ending March 31, 2026 5. Topics of Interest in Dialogue with Shareholders and Investors
Page 22
22 2025/3 Results 2026/3 Forecast YoY Net sales 93.73 billion yen 105.00 billion yen 12.0 % Operating profit 6.48 billion yen 6.60 billion yen 1.7 % Ordinary profit 8.29 billion yen 7.15 billion yen -13.9 % Profit attributable to owners of parent 7.79 billion yen 6.05 billion yen -22.4 % Consolidated Forecast for the Fiscal Year Ending March 31, 2026
Page 23
23 Consolidated Forecast by Segment for the Fiscal Year Ending March 31, 2026 Net sales Segment profit 2025/3 Results 2026/3 Forecast Change 2025/3 Results 2026/3 Forecast Change Energy Business 35.15 36.0 0.85 3.6* 3.1 -0.5 Industrial Machinery Business 24.81 34.0 9.19 -0.32 0.2 0.52 Product Business 33.75 35.0 1.25 3.59 3.5 -0.09 Total 93.73 105.0 11.29 6.87* 6.8 -0.07 (Billion yen) Starting this term, the amounts shown for segment profit have changed from operating profit to operating profit adjusted by share of (profit) loss of entities accounted for using the equity method, in consideration of profit/loss of equity-method affiliates. The method of calculating segment profit has changed to the following: segment profit = operating profit + share of (profit) loss of entities accounted for using the equity method. YoY comparisons reflect this change in the method of calculating segment profit. * Amount shown excludes negative goodwill of 950 million yen on making Fenwal Controls of Japan an equity method affiliate last year.
Page 24
24 CONTENTS ― Reference Materials ― 1. Financial Summary 2. Summary of Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2026 3. Illustration of Achievement of Operating Profit Targets of Long-Term Management Vision 4. Consolidated Forecast for the Fiscal Year Ending March 31, 2026 5. Topics of Interest in Dialogue with Shareholders and Investors
Page 25
25 Topics of Interest in Dialogue with Shareholders and Investors Shareholder Returns and Dividend Policy Status of IR Activities Efforts to Maintain Inclusion in TOPIX (Status of Individual Shareholders) Status and Outlook of Nuclear Power Business Acquisition of Shares in Tokyo Sangyo Co., Ltd.
Page 26
26 8.33 11.66 20 30 36.6613.33 18.33 30 43.33 37 21.66 30 50 73.33 73.66 FY2021 FY2022 FY2023 FY2024 FY2025 (Projected) Dividend trend (yen) 1H Year-end Shareholder Returns and Dividend Policy Target total payout ratio: 45%(goal) Target dividend payout ratio: 35% Shares held Benefits 100-499 1,000 yen QUO Card 500-999 2,000 yen QUO Card 1,000 or more 3,000 yen QUO Card Shareholder benefits introduced in FY2024 Dividend policy revised from a dividend payout ratio of 35% to target total payout ratio of 45% Three-for-one share split conducted effective October 1, 2025 * Card designs subject to change Shareholder benefits program * Dividends have been adjusted to reflect the three-for-one share split effective October 1, 2025.
Page 27
27 Broadcast date Medium May 20, 2025 Radio Nikkei 1 Focus on This Company! God of Fortune in the Market Status of IR Activities-Increases in numbers of shareholders and trading proceeds 6 24 88 68 FY2022 FY2023 FY2024 FY2025 As of Sept. 30 Number of IR meetings Date Location Details Speaker May 26 Tokyo FY2025/3 Financial Results Briefing President and CEO and others May 30 Tokyo Small Meeting organized by SMBC Nikko Securities President and CEO July 5 Sapporo Company Briefing for Individual Investors President and CEO August 27 Tokyo Company Briefing for Individual Investors President and CEO August 30 Nagoya Company Briefing for Individual Investors President and CEO October 4 Fukuoka Company Briefing for Individual Investors President and CEO November 21 Tokyo FY2026/3 1H Financial Results Briefing President and CEO and others 42 26 Institutional investors Domestic Overseas* * Reference: Definition of “overseas investors” in Article 26, Paragraph 1 of the Foreign Exchange and Foreign Trade Act 7,488 7,734 10,444 13,047 13,663 30.01 32.85 102.41 316.96 324.58 (50) 50 150 250 350 450 550 0 4,000 8,000 2,000 FY2021 FY2022 FY2023 FY2024 FY2025 As of Sept. 30 Trends in numbers of shareholders and trading proceeds Shareholders Trading proceeds (million yen/day) Status of feedback to management and the Board of Directors Information is shared in a timely manner with the Board of Directors, members of the management committee, and persons responsible for corporate sections, and reflected in management strategies. Details Frequency Reporting method Minutes of meetings with investors and analysts As appropriate Directly or by email IR strategy status report Quarterly Board of Directors Status of briefings for investors (FY2025) Radio appearance
Page 28
28 Status of IR Activities-Media Coverage Date Medium January 10 Nikkan Gendai Column by President and CEO Akihiko Sakurai, “Professional Insights: The Next Big Stock” March 19 Quarterly Report 500 (Spring) “70 Carefully Selected Stocks” June 17 Nihon Keizai Shimbun “Foreign Investors Focus on Japanese SME Stocks” June 19 Diamond Zai (August) “Kiritani Chooses 12 Stocks that Promise Shareholder Benefits and High Dividends” September 20, 22 Nikkei Veritas “Reforming TSE Indices at the Peak,” “SME Stock Tips ‘Takumi’”
Page 29
29 Efforts to Maintain Inclusion in TOPIX (Status of Individual Shareholders) 7,268 7,506 10,164 12,738 13,369 533.0 684.7 1,235.0 1,441.7 1,978.0 0 1,000 2,000 3,000 0 0 0 0 0 0 0 FY2021 FY2022 FY2023 FY2024 FY2025 As of Sept. 30 Trend in individual shareholders Individual shareholders Ending stock price Striving to increase the percentage of floating stock at the end of March 2025, we sold shares and reduced cross-shareholdings. While enhancing IR activities, efforts including company briefings for individual investors and introducing a shareholder benefits program have resulted in a significant increase in the percentage of individual shareholders. Our percentage of short-term shareholders has exceeded the average for companies listed for 50 years or longer, and our individual shareholders are becoming increasingly diverse. All of the existing individual shareholders have unrealized profits. 0 10 20 30 Less than 0.5 years 0.5 or more but less than 1.5 years 1.5 or more but less than 2.5 years 2.5 or more but less than 3.5 years 3.5 or more but less than 4.5 years 4.5 or more but less than 5.5 years 5.5 or more but less than 6.5 years 6.5 or more but less than 7.5 years 7.5 or more but less than 8.5 years 8.5 or more but less than 9.5 years 9.5 or more but less than 10.0 years 10.0 or more but less than 15.0 years 15.0 or more but less than 20.0 years 20.0 or more years Distribution of holding periods Percentage of individual shareholders Average for companies listed for 50 years or longer (%) Distribution of profit/loss by holding period 9.5 or more but less than 10.0 years 9.0 or more but less than 9.5 years 8.5 or more but less than 9.0 years 8.0 or more but less than 8.5 years 7.5 or more but less than 8.0 years 7.0 or more but less than 7.5 years 6.5 or more but less than 7.0 years 6.0 or more but less than 6.5 years 5.5 or more but less than 6.0 years 5.0 or more but less than 5.5 years 4.5 or more but less than 5.0 years 4.0 or more but less than 4.5 years 3.5 or more but less than 4.0 years 3.0 or more but less than 3.5 years 2.5 or more but less than 3.0 years 2.0 or more but less than 2.5 years 1.5 or more but less than 2.0 years 1.0 or more but less than 1.5 years 0.5 or more but less than 1.0 years Less than 0.5 years Shareholders Stock price (yen) Individual shareholders Most recent ending stock price Ending stock price Share price during period ended September 30, 2025: 1,978 yen Unrealized gains
Page 30
30 Status and Outlook of Nuclear Power Business Excerpts from Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy documents (as of September 2, 2025) Shikoku Electric Power Co., Inc. Ikata Nuclear Power Station 30 Kansai Electric Power Co., Ltd. Mihama Nuclear Power Station 48 Kansai Electric Power Co., Ltd. Ohi Nuclear Power Station 33 32 Kansai Electric Power Co., Ltd. Takahama Nuclear Power Station 50 49 40 40 Kyushu Electric Power Co., Inc. Genkai Nuclear Power Station 31 28 Kyushu Electric Power Co., Inc. Sendai Nuclear Power Station 41 39 30 Years in operation April 1, 2023 Launched sales agency business for Mitsubishi Heavy Industries’ nuclear power plant equipment in western Japan March 2023-June 2024 Capital and business alliance and equity method affiliate established in nuclear power business A leading manufacturer of high- pressure valves for the nuclear and thermal power fields Has advanced technologies in manufacturing fire- extinguisher equipment for use in nuclear power plants Main businesses include periodic inspection and maintenance every 13 months under laws and regulations Periodic inspections underway Plants currently in operation for which we are in charge of agent operations February 18, 2025 Seventh Strategic Energy Plan identifies maximum use of nuclear power as a carbon-free energy source Periodic inspections underway June 2025 GX Decarbonization Power Source Act enacted, which extends the operation period of a nuclear power plant from 40 to more than 60 years in principle Future Anticipated demand for upgrading large-scale major power equipment and peripheral equipment at aged power plants and for discussions on dry storage facilities for spent fuel
Page 31
31 Acquisition of Shares in Tokyo Sangyo Co., Ltd. Shares in Tokyo Sangyo Co., Ltd. acquired April 3, 2025 Number of shares acquired 3,321,800 shares of common stock Percentage of total shares issued and outstanding 11.58% (*) Tokyo Sangyo Co., Ltd. (securities code: 8070) Location Chiyoda Ward, Tokyo Lines of business Sales, maintenance, service, etc. of various machinery, plants, materials, tools, chemicals, etc. in Japan and overseas Capital 3.443 billion yen Established October 20, 1947 * We are the largest shareholder Launching discussions toward cooperation and collaboration 1. The importance of increasing corporate value to meet stakeholder expectations 2. Employees are the most important business resource of a trading company 3. Synergies from business similarities Keeping the above and other considerations in mind, discussions have begun in the planning lines of both companies toward constructive consultation negotiations based on mutual respect and trust
Page 32
32 Reference Materials
Page 33
33 CONTENTS 1. Company Profile 2. IR Topics in the Fiscal Year Ending March 31, 2026 3. Initiatives for Human Capital 4. Introduction to Each Business 5. Performance Trends 6. History of SEIKA CORPORATION 7. Domestic and Overseas Locations 8. Consolidated Subsidiaries and Affiliated Companies 9. ESG Initiatives
Page 34
34 1. Company Profile Stock code 8061 Business category Trading company Head office Shin-Tokyo Bldg 3F, 3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo 100-0005 Establishment October 1, 1947 President Akihiko Sakurai Capital 6,728 million yen Number of employees Consolidated: 1,094 Parent only: 362 (as of the end of September 2025) Core business Sale, import, export and after sales service related to power generating equipment, environmental equipment, industrial machinery and electric equipment SEIKA CORPORATION's locations 29 offices in Japan, including head office, Osaka branch, Fukuoka branch and Hiroshima branch 3 offices overseas including Seoul branch Group companies 29 companies in total (12 in Japan and 17 overseas) Business sites 137 bases in total (112 in Japan and 25 overseas)
Page 35
35 2. IR Topics in the Fiscal Year Ending March 31, 2026 List of Topics Apr 3: Acquisition of shares of Tokyo Sangyo (securities code: 8070) May 2: Receipt of letter of appreciation from the Mayor of Kitakyushu for corporate hometown tax contributions May 21: Appearance of President and CEO Sakurai on Radio NIKKEI May 26: Financial results briefing for the fiscal year ended March 31, 2025 May 30: Participation in a Small Meeting hosted by SMBC Nikko Securities Jul 5: Participation in Corporate IR & Individual Investors Support Event in Sapporo, co-sponsored by Radio NIKKEI and PRONEXUS Jul 29: Awarded CDP Climate Change Report 2024 score of B Aug 7: Announcement of 3-for-1 share split Aug 27: Participation in IR Academy: IR Seminar for Individual Investors, organized by Nikkei CNBC Aug 30: Participation in Corporate IR & Individual Investors Support Event in Nagoya, co-sponsored by Radio NIKKEI and PRONEXUS Sep 20, 22: Interview published in Nikkei Veritas Oct 4: Participation in Corporate IR & Individual Investors Support Event in Fukuoka, co-sponsored by Radio NIKKEI and PRONEXUS Nov 21: Financial results briefing for 1H of the fiscal year ending March 31, 2026
Page 36
36 3. Initiatives for Human Capital – Recruitment Number of new hires in FY2024 Turnover of new graduate hires within three years Overall turnover Employee satisfaction (%) New graduates 10 Mid-career hires 15 0% 3.5% 50.5 43.2 45.9 79.0 79.0 78.6 FY2022 FY2023 FY2024 Industry average Company 25.8 26.7 28.6 31.2 28.7 4.2 3.9 5.9 4.9 4.3 16.7 40.0 28.6 20.0 20.0 FY2020 FY2021 FY2022 FY2023 FY2024 Female employee ratio Female manager ratio Female new graduate hire ratio Female employee ratio/Female manager ratio/Female new graduate hire ratio (%)
Page 37
37 3. Initiatives for Human Capital – Support for Achieving a Work/Life Balance Percentage of employees taking childcare leave Women 100% Men 61.5% Percentage of paid leave used 67% 69% 62% FY2022 FY2023 FY2024 Flextime system Leave systems Overtime work per month 12.5 hours Maximum days of leave accumulation 40 days The flextime system lets employees set their own daily starting/ending times and working hours within the specified scope. The system lets employees change their work hours to accommodate times for dropping off / picking up children or to avoid commuting during rush hours. Special leave for summer vacation 5 days Annual paid leave 20 days Support for senior active engagement While our mandatory retirement age is 62, we operate a continuous employment system for employees who wish to continue working beyond the mandatory retirement age. In this way, we have created an environment conducive to continued work. Support for balancing work and childcare We provide various leave systems to help employees balance work with childcare and childrearing responsibilities. Additionally, we offer parents reduced working hours for childcare. Company policies limit overtime and late - night work for parents. Personnel can also take advantage of shortened working hours for caregiving, exemptions from or limits on overtime work, caregiver leave, and special reserve of paid vacation. Promoting the active role of women in the workplace We offer generous systems related to childcare and caregiving.
Page 38
38 3. Initiatives for Human Capital – Improving Engagement Distinctive systems and fringe benefits • Commendation for extended service (in 25th year) • Childbirth congratulatory cash gift (100,000 yen for first child and 300,000 yen for subsequent children) • Congratulatory cash gift for children advancing to new levels of education (50,000 yen per child when entering kindergarten / nursery school, elementary school, junior high school, and high school Updates to overseas business travel regulations The actual cost of travel and accommodation is reimbursed. Twice-yearly health examinations • Spring health examination Full physical (for employees aged 30 or older) Lifestyle disease checks, gynecological examinations, cancer screenings (Employees aged 30 or older are also eligible to receive subsidies for the cost of optional examinations/tests.) • Autumn health examinations Statutory health examinations, cancer screenings Purpose - specific training *Some training is for specific audiences. Level - specific training Self - development TOEIC/telecommunications engineering/book-keeping/ construction management engineer/trade business, etc. Global Human Resources Training 1,935 3,350 3,580 2,800 4,700 5,000 FY2022 FY2023 FY2024 Total training hours (hours) Total training and development costs (10,000 yen) Total hours of training / total education/training expenditures Labor union (established in 1974) Expansion of employee stock ownership plan (company contributes 20%) Updates to overseas assignment regulations Support is provided for employees’ voluntary efforts to further enhance their expertise and education, such as acquiring English and other foreign languages, acquiring public and private certifications and participating in external seminars. Human resources who can play an active role internationally are developed by sending young employees to the Group's overseas subsidiaries with the aim of fostering international business acumen. OJT On-the-job training is provided to new employees and other young employees to improve their ability to perform their duties while gaining practical experience. Level-specific training is conducted for the purpose of acquiring the job execution capabilities expected at each level, e.g., year of joining, qualification grade, and position. Purpose-specific training is provided, allowing employees to freely choose from all topics training and seminars meeting their goals.
Page 39
39 3. Initiatives for Human Capital Diversity initiatives in Japan and overseas To foster a sense of belonging among Group employees and to strengthen intercompany ties, five female employees from overseas sites (Thailand, Vietnam, Taipei, Seoul, and Shanghai) participated in a team-building training program at our Tokyo headquarters. The program included presentations on the operations of Group companies and a factory tour. In Japan, a total of 40 female administrative employees from various domestic locations took part in a training program intended to promote information-sharing and enhancing operational efficiency and sophistication. The program included discussions on work-related challenges and the appointment/development of female managers. Human resource development Fostering an environment that respects the individuality of each employee and provides motivation for personal growth Developing human resources who will execute corporate strategy, with the goal of enhancing practical skills alongside advanced expertise and cultivating broad-based knowledge and competence (development and training costs) Establishing a personnel system to support individual growth and the strengthening of organizational capabilities and functions (personnel system reform) Formulating succession plans to promote the steady development of future executives (development of Group managerial talent) Personnel system reforms (from FY2024) Breaking away from seniority-based treatment Establishing a system to support individual growth and the strengthening of organizational capabilities and functions Appropriately assessing individual abilities and reflecting assessment outcomes in pay increases Scrapping position labels such as career position and staff position and targeting optimal human resource assignments
Page 40
40 4. Introduction to Each Business Robust network for interacting with customers and suppliers Strong credibility as an authorized agent of Mitsubishi Heavy Industries Stable earning power based on social infrastructure
Page 41
41 4. Introduction to Each Business – Energy Business Thermal power Nuclear power Renewable energy Sales and maintenance services for power generating equipment and related equipment for thermal power plants Periodic inspection and maintenance of private power plants Providing solutions for decarbonization Sales and maintenance service of power generating equipment for nuclear power plants Sales and maintenance service of utility, safety, and other peripheral equipment for power stations Equipment for small-scale hydroelectric, solar, biomass, and other renewable energy sources Providing equipment and solutions related to clean energy Main products and services 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 Power generating equipment and related equipment for nuclear power plants Security equipment, utility equipment, and other peripheral equipment of power plants Driving initiatives related to decarbonization of thermal power generation with the use of ammonia or hydrogen or mixed combustion with ammonia or hydrogen, as well as those related to clean energy Examples Flywheel (battery-free) UPS GTCC power generation Hydroelectric power Ultralight solar panels Natural pellets Explosion suppression system General entry/exit control systems
Page 42
42 4. Introduction to Each Business – Energy Business The Energy Business comprises two types of business: Commissioned transactions Delivery, replacement, and maintenance of Mitsubishi Heavy Industries’ core power generation equipment Many high-volume projects; no exposure to financial or product-related risks Principal transactions Delivery, replacement, and maintenance of peripheral equipment for power generation, such as equipment for coal handling, water treatment, and gas treatment Many products are provided by specialist manufacturers, and the project scale varies. ⇒ We assume a certain financial burden, but profit margins are higher than with commissioned transactions. Horizontal-whorl Francis turbineGas turbine Ultra-lightweight solar panelEmergency diesel power generatorProducts handled Customers Character- istics Electric power companies in western Japan and industrial companies nationwide that possess in- house power generation equipment
Page 43
43 4. Introduction to Each Business – Energy Business Our role Regular maintenance and inspections work is essential to the safe operation of active power generation facilities. This is our core business and primary revenue source. Orders for new installations and equipment upgrades are won primarily through the trust and regard of customers, who attribute the seamless operation of their existing facilities to the quality of our efforts. Day-to-day sales activities are vital. Our strengths and the business environment Operating in this domain requires meticulous sales activities, robust support structures, and strategically located service bases. One of our key assets is the unwavering credibility we enjoy in the power generation sector as an authorized agent of Mitsubishi Heavy Industries. We handle a full range of power generation equipment, from 500 kW to 1,000,000 kW, covering thermal, nuclear, hydro, and renewables. This allows us to meet diverse customer needs while helping to meet Japan’s energy demand.
Page 44
44 4. Introduction to Each Business – Energy Business CustomersSuppliers Mitsubishi Heavy Industries Mitsubishi Heavy Industries Power IDS Mitsubishi Heavy Industries Power Environmental Solutions Mitsubishi Electric Hitachi Mitsubishi Hydro TVE Fenwal Controls of Japan OTEC Electronics Kansai Electric Power Kyushu Electric Power Chugoku Electric Power Shikoku Electric Power ENEOS Kobe Steel JFE Nippon Steel Oji Paper Osaka Gas
Page 45
45 4. Introduction to Each Business – Industrial Machinery Business Current main product lines 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 Examples Existing strengths Businesses centered on customer sales to manufacturers of chemicals, materials, beverages, and industrial plants For manufacturers of chemicals, materials, and beverages: Supplying a wide range of equipment and maintenance services for utilities (electricity, steam, water), in addition to processes from acceptance of raw materials through storage, product lines, and logistics lines →Striving to overcome issues related to low profit margin by deploying current differentiated main product lines For manufacturers of industrial plants: Supplying various equipment and components for plant manufacturers’ facilities and project procurement, tailored to customer specifications Automation business Recycling business Solutions business Automated warehouses, autonomous transport robots, automated spice injection equipment, production line automation equipment Pyrolysis equipment, solvent recovery equipment, non-heating re-pelleting equipment, and other equipment related to material recycling and recycling plants Proposing eco-friendly equipment to address issues in each country and industry; proposing production efficiency systems using system integrators High-quality stainless steel tanks (made by Motomura) Forging, metalworking (forges, machine tools, OEM products, sheet metal, pressing, surface treatment) General entry/exit control systems Polymer Removal Device HYPOX General-purpose sorting device Opti sorter
Page 46
46 Customers 4. Introduction to Each Business-Industrial Machinery Business Mitsubishi Heavy Industries Group companies Nippon Steel Kyowa Fine-Tech Daisho Tekkosho Miyoshi Ironworks Unozawa-gumi Iron Works Miura Konan Electric Mitsubishi Chemical Mitsui Chemicals Toray Kaneka Toyobo JNC Suntory Kirin Brewery NOF Mitsubishi Heavy Industries Group companies Kawasaki Heavy Industries Group companies JFE Engineering TMEIC JGC Fuji Electric Takuma Kimura Chemical Plants For manufacturers of chemicals, materials, and beverages For manufacturers of industrial plants Fujikura Shoji OKM HSV Fellow Espo Chemicals Nippon Daiya Valve Ebara Fan & Blower Suppliers Toyo Electric Motomura Yamato Scale Organo Mutual Nihon Netsugen Systems Daifuku Estech MOVE ENGINEERING Estech Seo Koatsu Kogyo Honda Pumps
Page 47
47 Seika Corporation Seika Digital Image Sales and service related to fishing and commercial marine engines in Japan Sales of submersible pumps for construction use Manufacture and sale of industrial valves Sales and service of gas instruments, laser technology, various imaging instruments Facilities located near fishing ports across Japan; holds high share of the fishing boat engine market Strengths in field service and maintenance Sales agents in 35 European nations, based in Germany; boasts high share of the construction market Employs flexible sales styles suited to practices in each country, such as product rentals Sales centered on Japan and Asian markets in a wide range of fields, including chemicals, pharmaceuticals, food products, semiconductors, steel, and power generation Product examples: manufacture and sale of diaphragm valves, ball valves, butterfly valves Sales, manufacturing facilities: Japan, China, Thailand Main product of diaphragm valves holds the top market share in Japan. Sales of instruments to power and chemicals plants, universities, research institutes, and other niche markets Sales of labor-saving equipment, such as AGVs (Automated Guided Vehicles) and UT drones for plant equipment inspection 4. Introduction to Each Business-Product Business Drone inspection service 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 other measuring equipment Underwater pumps for construction work and wastewater treatment equipment Particle image velocimetry systems Diffuser tubes for wastewater treatment equipment Seika Daiya Engine Co., Ltd. Shikishimakiki Corporation NIPPON DAIYA VALVE CO., LTD. Tsurumi (Europe) GmbH
Page 48
48 4. Introduction to Each Business-Product Business Tsurumi (Europe) GmbH (Germany) HIGH COMPONENTS AOMORI KIOXIA Kyocera Tsurumi Manufacturing AT&S China Company Ltd. (China) Taiyo Nippon Sanso Taikisha Power plants, chemicals plants, etc. Universities, research institutes Tsurumi Manufacturing APT (Taiwan) Taihong Circuit Industrial Co., Ltd. (Taiwan) Grea Tech Substrates Co., Ltd.(China) PROMECON process measurement control GmbH (Germany) NEO MONITORS AS (Norway) Terra Drone Sensia Solutions S.L. (Spain) Mesa Laboratories, Inc. (USA) CustomersSuppliers
Page 49
49 2003/3 2004/3 2005/3 2006/3 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 2024/3 2025/3 Transaction value 151.12 139.52 117.20 110.73 148.31 156.59 161.26 123.39 120.24 135.72 136.67 126.49 132.03 127.10 150.74 165.59 157.15 140.68 136.27 134.26 175.74 205.38 290.44 Operating profit (Billion yen) 1.70 0.64 1.91 2.08 3.63 3.23 3.75 1.40 2.56 3.06 2.82 2.19 3.40 2.17 3.04 2.59 2.11 2.80 2.58 3.82 4.63 5.58 6.48 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 0.005.0010.00 15.0020.0025.00 30.0035.0040.0045.00 50.0055.0060.0065.00 70.0075.0080.0085.00 90.00 95.00100.00105.00110.00 115.00120.00125.00 130.00135.00140.00145.00 150.00155.00160.00165.00 170.00175.00180.00185.00190.00195.00200.00205.00210.00215.00220.00225.00230.00235.00240.00245.00 250.00 255.00260.00265.00270.00 275.00280.00285.00 290.00295.00300.00305.00 310.00315.00320.00325.00 330.00 335.00340.00345.00350.00 Transaction value Operating profit (Billion yen) * The Accounting Standard for Revenue Recognition and other related standards are not applied to transaction value. 5. Performance Trends (Consolidated Transaction Value and Operating Profit)
Page 50
50 5. Performance Trends (Consolidated Financial Results) 1.21 2.24 4.26 3.76 6.28 6.25 8.29 7.15 2023/3 2024/3 2025/3 2026/3 (Forecast) Consolidated Ordinary Profit Ordinary Profit – 1H Ordinary Profit – Full Year 40.45 40.04 44.51 51.83 93.31 86.78 93.73 105.00 2023/3 2024/3 2025/3 2026/3 (Forecast) Consolidated Net Sales Net sales – 1H Net sales – Full Year * After adoption of Accounting Standard on Revenue Recognition and the Implementation Guidance 1.44 2.05 2.92 3.26 4.63 5.58 6.48 6.60 2023/3 2024/3 2025/3 2026/3 (Forecast) Consolidated Operating Profit Operating Profit – 1H Operating Profit – Full Year 0.84 1.46 5.02 3.12 5.00 4.48 7.79 6.05 2023/3 2024/3 2025/3 2026/3 (Forecast) Consolidated Profit Attributable to Owners of Parent Profit attributable to owners of parent – 1H Profit attributable to owners of parent – Full Year (Billion yen)
Page 51
51 7.6 15.4 11.6 17.5 12.3 2022/3 2023/3 2024/3 2025/3 2026/3 (Forecast) Return on Equity (ROE) 5. Performance Trends (Management Indicators) 0.64 0.71 1.06 1.10 1.45 2022/3 2023/3 2024/3 2025/3 2026/3 As of Sept. 30 Price Book-value Ratio (PBR) 8.5 4.9 9.9 6.6 11.7* 2022/3 2023/3 2024/3 2025/3 2026/3 (Forecast) Price Earnings Ratio (PER) 62.28 138.59 124.15 216.55 168.12 2022/3 2023/3 2024/3 2025/3 2026/3 (Forecast) Earnings Per Share (EPS) (%) (Times) (Times) (yen) * PER forecasts are calculated based on stock prices as of the end of September. * Executed a three-for-one share split effective October 1, 2025, with EPS adjusted accordingly.
Page 52
52 6. 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 ● Shares listed on First Section of Tokyo Stock Exchange (Capital 0.6 billion yen) January 1974 ● Established the subsidiary Seika Sangyo GmbH in Germany (Dusseldorf) December 1980 ● Capital increased to 3.0 billion yen November 1983 ● Established the subsidiary Tsurumi (Europe) GmbH in Germany (Dusseldorf) May 1984 ● Capital increased to 4.3 billion yen 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) April 2005 ● Acquired 100% ownership of Nippon Daiya Valve Co., Ltd.
Page 53
53 6. History of SEIKA CORPORATION (2) 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 Co., Ltd. March 2016 ● Acquired 100% ownership of Shikishimakiki Corporation December 2018 ● 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 and supervisory committee March 2023 ● Acquired shares in TVE Co., Ltd. (making it an equity method company) November 2023 ● Established FORMOSA SEIKA CORPORATION (Taipei) April 2024 ● Acquired shares in Shipyard Tanaka Co., Ltd. through Seika Daiya Engine Co., Ltd. (making it a sub-subsidiary) June 2024 ● Acquired shares in Fenwal Controls of Japan, Ltd. (making it an equity method affiliate)
Page 54
54 7. Domestic and Overseas Locations
Page 55
55 8. Consolidated Subsidiaries and Affiliated Companies (Domestic) 55 Nippon Daiya Valve Co., Ltd. Tokyo (head office), Osaka, Nagoya, Okayama, Kita Kyushu Seika Digital Image CORPORATION, Tokyo 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 25 offices nationwide Shipyard Tanaka Co., Ltd. Matsuura MEINAN KYODO ENERGY Co., Ltd., Chita S-TEC Co., Ltd. Tokyo (head office), Osaka, Tsukuba TEN FEET WRIGHT INC. Tokyo (head office), Osaka, Takamatsu, Fukuoka JAPAN EJECTOR ENGINEERING Co., Ltd., Osaka (head office), Wakayama TVE Co., Ltd. Hyogo (head office), Tokyo, and 15 other locations Fenwal Controls of Japan, Ltd. Tokyo (head office) 12 other locations
Page 56
56 8. Consolidated Subsidiaries and Affiliated Companies (Overseas)
Page 57
57 9. ESG Initiatives (social contribution activities in recent years) [Activities to revitalize and support local communities] Donation to the red feather community chest Disaster relief donation through the Japanese Red Cross Society Donation to Kainaniji Ikueikai Donation of unused calendars and notebooks (Ebetsu Kyodo Network, an NPO) Donation to educational activities sponsored by Kitakyushu City, Fukuoka Prefecture using the corporate furusato nozei program Donation to Ube City, Yamaguchi Prefecture, for community development Participation in the Otemachi-Marunouchi-Yurakucho Kirapika Operation (local cleanup activity) Support for employees' participation in volunteer activities [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) Used stamps We received a letter of appreciation from Kitakyushu City. We took part in the Otemachi-Marunouchi-Yurakucho Kirapika Operation (local cleanup activity).
Page 58
58 FY2023 FY2024 FY2026 9. ESG Initiatives (promoting green innovation products) (Billion yen) 250.0235.5 150.0 Setting a new KPI Sales of green innovation products* FY2023 FY2024 FY2026 target 150.0 235.5 250.0 (Initial target: 180) Drawing on our experience and business base from the Energy and Industrial Machinery businesses, we are striving as a general machinery trading company to achieve carbon neutrality. Specifically, we are promoting the adoption and expansion of green innovation products to support customers’ efforts in reducing GHG emissions. Our track record and trends are shown below. * Sales of products capable of contributing to environmental efforts, including decarbonization, green energy, energy conservation and labor- savings, pollution prevention, recycling, and reuse
Page 59
Cautionary Note: Forward-Looking Statements: All forward-looking statements contained herein are based on information available to SEIKA CORPORATION as of the date hereof and actual results may differ materially from those in the forward-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.