Nifco : Annual Securities Report－The 71st Fiscal Year（From April 1, 2022 to March 31, 2023）

Annual Securities Report

(Report pursuant to Article 24, Paragraph 1 of the

Financial Instruments and Exchange Act)

The	From April 1, 2022,
71st Fiscal Year	to March 31, 2023

Nifco Inc.

E02386

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	Table of Contents
Cover		Page
Part I. Information on the Company	4
I. Company Overview	4
1.	Trends in Key Management Indicators, etc	4
2.	History	6
3.	Description of Business	8
4.	Status of Subsidiaries and Associates	11
5.	Status of Employees	14
II.	Business Overview	16
1.	Management Policies, Management Environment and Issues to Be Addressed	16
2.	Sustainability Concept and Initiatives	17
3.	Business Risks	19
4.	Management's Analysis of Financial Position, Operating Results and Cash Flows	21
5.	Important Business Contracts, etc	26
6.	Research and Development Activities	29
III.	Status of Facilities	30
1.	Overview of Capital Investment, etc	30
2.	Status of Major Facilities	31
3.	Plans for Construction and Retirement, etc. of Facilities	32
IV.	Status of the Company	33
1.	Status of Shares, etc	33
(1)	Total number of shares, etc	33
(2)	Status of share acquisition rights, etc	33
(3)	Exercise status, etc. of moving strike convertible bonds with share acquisition rights, etc	33
(4)	Trends in total number of issued shares and share capital, etc	34
(5)	Shareholding status	34
(6)	Status of major shareholders	35
(7)	Status of voting rights	37
(8)	Details of executive and employee stock ownership plan
2.	Status of Acquisition, etc. of Treasury Shares	40
3.	Dividend Policy	42
4.	Status of Corporate Governance, etc	43
V.	Financial Information	65
1.	Consolidated Financial Statements, etc	66
(1)	Consolidated Financial Statements	66
(2)	Others	109
2.	Financial Statements, etc	110
(1)	Financial Statements	110
(2)	Details of major assets and liabilities	120
(3)	Others	120
VI.	Stock-Related Administration for the Company	121
VII.	Reference Information on the Company	122
1.	Information on the Parent Company, etc. of the Company	122
2.	Other Reference Information	122
Part II.	Information on the Guarantee Companies, etc. of the Company	123
[Audit Report]
[Internal Control Report]

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[Cover]

[Document filed]	Annual Securities Report
[Applicable law]	Article 24, Paragraph 1 of the Financial Instruments and Exchange Act
[Filed to]	Director-General, Kanto Local Finance Bureau
[Filing date]	June 22, 2023
[Fiscal year]	71st fiscal year (from April 1, 2022, to March 31, 2023)
[Company name]	Nifco Inc.
[Company name (English)]	Nifco Inc.
[Title and name of representative]	Masaharu Shibao, President & Representative Director
[Address of head office]	5-3 Hikarinooka, Yokosuka-shi, Kanagawa
[Phone number]	[phone]
[Contact person]	Masaya Nagaoka, Executive Managing Officer, Head of Management Control
[Contact address]	Mita Bellju Building 20th Floor, 5-36-7 Shiba, Minato-ku, Tokyo
[Phone number]	[phone]
[Contact person]	Masaya Nagaoka, Executive Managing Officer, Head of Management Control
[Place where available for public inspection]	Tokyo Stock Exchange, Inc.
	(2-1,Nihonbashi-kabutocho,Chuo-ku, Tokyo)

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Part I. Information on the Company

1. Company Overview

1. Trends in Key Management Indicators, etc.

1. Consolidated management indicators, etc.

Term		67th	68th	69th	70th	71st
Fiscal years ended		March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022	March 31, 2023
Net sales	(millions of	288,902	288,012	256,078	283,777	321,771
yen)
Ordinary profit	(millions of	28,778	28,765	29,535	33,602	37,876
yen)
Profit attributable to owners	(millions of	20,753	18,321	18,402	22,959	21,170
of parent	yen)
Comprehensive income	(millions of	14,802	16,923	17,511	33,180	33,527
yen)
Net assets	(millions of	160,690	168,786	178,649	200,875	226,127
yen)
Total assets	(millions of	284,842	304,184	307,127	333,068	359,150
yen)
Net assets per share	(yen)	1,538.96	1,630.57	1,737.80	1,978.36	2,237.06
Basic earnings per share	(yen)	199.90	177.87	181.09	227.27	211.28
Diluted earnings per share	(yen)	192.73	171.43	-	-	-
Equity ratio	(%)	55.7	54.8	57.5	59.5	62.2
Return on equity	(%)	13.2	11.3	10.7	12.3	10.0
Price-earnings ratio	(Times)	14.1	10.9	22.3	12.3	17.8
Cash flows from operating	(millions of	37,371	35,829	39,922	31,743	37,261
activities	yen)
Cash flows from investing	(millions of	(14,884)	(21,617)	(12,570)	(9,479)	(11,530)
activities	yen)
Cash flows from financing	(millions of	(7,076)	1,040	(20,273)	(13,516)	(17,418)
activities	yen)
Cash and cash equivalents at	(millions of	74,200	88,552	95,744	109,992	122,233
end of period	yen)
Number of employees		11,804	11,486	10,745	10,193	10,169
[Average number of	(persons)
	(3,699)	(3,449)	(3,359)	(3,004)	(3,100)
temporary employees]
(Notes) 1. Diluted earnings per share for the 69th, 70th, and 71st terms are not stated because there are no dilutive shares.

2. "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied from the beginning of the 70th term, and the principle management indicators, etc. for the 70th term and subsequent terms are those after the application of the accounting standard, etc.

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1. Non-consolidatedmanagement indicators

	Term		67th	68th	69th	70th	71st
	Fiscal years ended		March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022	March 31, 2023
Net sales		(millions of	83,644	88,496	79,584	83,365	86,391
	yen)
Ordinary profit	(millions of	15,098	15,928	19,201	18,617	22,389
yen)
Profit		(millions of	13,240	13,163	15,931	16,629	18,674
	yen)
Share capital		(millions of	7,290	7,290	7,290	7,290	7,290
	yen)
Total number of issued shares	(Thousand	107,508	107,508	107,508	107,508	107,508
shares)
Net assets		(millions of	95,517	100,090	109,266	115,575	126,926
	yen)
Total assets		(millions of	165,522	184,646	185,203	191,152	202,483
	yen)
Net assets per share	(yen)	925.73	979.26	1,075.97	1,153.75	1,270.14
Dividends per share		62.00	62.00	53.00	62.00	64.00
		(yen)
(Interim dividends per share)		(31.00)	(31.00)	(25.00)	(31.00)	(31.00)
Basic earnings per share	(yen)	127.53	127.79	156.78	164.62	186.37
Diluted earnings per share	(yen)	122.93	123.14	-	-	-
Equity ratio		(%)	57.7	54.2	59.0	60.5	62.7
Return on equity	(%)	14.1	13.5	15.2	14.8	15.4
Price-earnings ratio	(Times)	22.1	15.2	25.7	17.0	20.1
Dividend payout ratio	(%)	48.6	48.5	33.8	37.7	34.3
Number of employees		1,290	1,355	1,388	1,375	1,361
[Average number of	(persons)
	(494)	(503)	(468)	(411)	(383)
temporary employees]
Total shareholder return	(%)	79.0	56.5	115.4	83.0	111.0
[Benchmark: TOPIX	(%)	(95.0)	(85.9)	(122.1)	(124.6)	(131.8)
including dividends)
Highest share price	(yen)	4,070	3,290	4,210	4,370	3,775
Lowest share price	(yen)	2,437	1,661	1,737	2,608	2,484
(Notes) 1.	Diluted earnings per share for the 69th, 70th, and 71st terms are not stated because there are no dilutive shares.

1. The highest and lowest share prices are those recorded on the Prime Market of the Tokyo Stock Exchange on or after April 4, 2022, or on the first section of the Tokyo Stock Exchange before that date.
2. "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied from the beginning of the 70th term, and the principle management indicators, etc. for the 70th term and subsequent terms are those after the application of the accounting standard, etc.

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