Nissei Plastic Industrial : 第65期アニュアルレポート

For the Fiscal Year Ended March 31, 2021

Annual Select® 2021

NISSEI PLASTIC INDUSTRIAL

CO., LTD.

2110 Minamijo, Sakaki-machi,Hanishina-gun,Nagano-ken, Japan

(Securities Code: 6293)

[phone]

Corporate Profile

NISSEI's research has been dedicated to the development of injection molding machines and its technologies under the following management philosophy: "As a global company, NISSEI will enrich communities through plastics." We are passionate about enriching the world with the fruits of our sophisticated plastic technologies that help all nations and industries.

The company was originally founded in 1947 to conduct business in the plastic molding industry, and in 1957 it began the manufacture and sale of injection molding machines, as NISSEI PLASTIC INDUSTRIAL CO., LTD. (the "Company"). Our injection molding machines are manufactured using proprietary technology that endows them with superior energy-saving performance, as well as environmentally friendly characteristics. They are currently used in more than 80 countries around the world, including the United States, Europe, Mexico, China, and Southeast Asia.

In the 74 years since it was founded, the Company group (the "Group") has shipped more than 140,000 units of its injection molding machines, and "NISSEI" brand injection molding equipment has earned an outstanding reputation in the automotive and medical industries, in addition to various other sectors.

I. Summary of Selected Financial Data (Consolidated)

61st term	62nd term	63rd term	64th term	65th term
Fiscal year ended	Fiscal year ended	Fiscal year ended	Fiscal year ended	Fiscal year ended
March 31, 2017	March 31, 2018	March 31, 2019	March 31, 2020	March 31, 2021

Net sales

(Millions of yen)

Ordinary profit

(Millions of yen)

Profit attributable to owners of parent

(Millions of yen)

Comprehensive income

(Millions of yen)

Net assets

(Millions of yen)

Total assets

(Millions of yen)

Net assets per share

(Yen)

Basic earnings per share

(Yen)

Diluted earnings per share

(Yen)

Equity-to-asset ratio

(%)

Rate of return on equity (ROE)

(%)

36,730		42,321		44,065		38,801	41,604
2,025	3,354	3,593	1,130	1,070
1,467		1,476		2,589		644	598
1,417	1,760	2,368	381	716
30,523		31,857		33,860		33,501	33,851
53,749	56,476	56,841	63,255	64,364
1,521.53		1,586.63		1,685.13		1,681.06	1,717.73
73.45	73.85	129.56	32.30	30.71
72.63		72.89		127.69		31.77	30.15
56.6	56.2	59.3	52.3	52.0
4.9		4.8		7.9		1.9	1.8

Price-earnings ratio (PER)

(Times)

Net cash provided by (used in) operating activities

(Millions of yen)

16.1	19.6	7.0	28.6	33.3
3,251		6,278		2,607		(5,044)	4,693

Net cash provided by (used
in) investing activities	(1,581)	(3,043)	(1,596)	(1,238)	(540)
(Millions of yen)
Net cash provided by (used
in) financing activities	(490)	(1,660)	(1,186)		2,081	1,831
(Millions of yen)
Cash and cash equivalents at
end of period	10,857	12,436	12,201	7,932	14,119
(Millions of yen)
Number of employees
[Separately, average number	899	970	1,020		1,330	1,306
of temporary workers]	[75]	[99]	[107]		[119]	[112]

(Persons)

Notes: 1. Net sales do not include consumption taxes.

1. The number of employees indicates the number of personnel actually working in the Group (excluding those who have been seconded to organizations outside the Group). The number of temporary workers is not included in this figure, but is given in parentheses as an average number for the year.
2. Temporary workers include dispatched workers, temporary contract employees, and part-timers.
3. The Company has applied the "Partial Amendments to Accounting Standard for Tax Effect Accounting" (ASBJ Statement No. 28, February 16, 2018) and relevant ASBJ guidances effective from the beginning of the 63rd term, and the key management indices for the 62nd term are those after retrospectively applying the accounting standard and relevant ASBJ guidances.
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II. Top Message

Hozumi Yoda, President and Representative Director

In the 74 years since the founding of the Company, concepts of manufacturing have constantly changed and shifted with the times, and the meaning of the Company's approach to management, as well as its outcomes, have always been questioned. The engineering division has taken a unique approach to applying the principles of molding, while the sales division has engaged customers both locally and around the world. At the same time, the production division has overcome challenging problems to ramp up mass-production at factories in Japan and overseas. Finally, our injection molding machines have enabled products to be manufactured at high speed and in large quantities while using less energy, leading to lower costs for both logistics and the item itself. The result is that we have facilitated the movement to market of a variety of materials, including foodstuffs and medicines, thus acting as a force to improve the lifestyles of people struggling with poverty and disease around the world.

However, at a time when modern society is pursuing the enrichment of living standards in a material sense, we as a company have arrived at the point where we must transform our social mission from "achieving a society characterized by low costs, convenience, comfort," to "achieving a society filled with genuine caring and prosperity." Our mission has become one of realizing an approach to manufacturing that protects the planet's ecosystems, with the need to address environmental problems such as that of marine pollution caused by microplastics, and enables them to be handed on to the next generation in a healthy state. We will work to achieve manufacturing methods that achieve a balance between the convenience offered by plastic and harmonious coexistence with the environment, such as by recycling plastics, or proposing new injection molding techniques that utilize biodegradable resins.

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III. Description of Business

The Group (the Company and its subsidiaries) is a specialist manufacturer whose core business consists of the manufacture and sale of injection molding machines and related products (peripherals, parts, molds, etc.), and is also engaged in business activities related to these areas.

The details of the Group's business, the positioning of the Company and its subsidiaries in relation to this business, and the relationship to the various segments are as follows.

1. Japan

In addition to our mainstay products of injection molding machines, we manufacture or procure peripherals, parts and molds, etc., and sell them to customers in Japan or to overseas sales subsidiaries.

2. Europe and America

Injection molding machines are manufactured at consolidated subsidiary NISSEI AMERICA, INC. Injection molding machines, peripherals, parts, and molds, etc. are sold mainly through NISSEI AMERICA, INC. and consolidated subsidiary NISSEI MEXICO, S.A. DE C.V.

In addition, consolidated subsidiary NEGRI BOSSI S.P.A. manufactures and sales injection molding machines and peripherals, etc. under its own brand.

3. Asia

Injection molding machines are manufactured at consolidated subsidiaries NISSEI PLASTIC MACHINERY (TAICANG) CO., LTD., and NISSEI PLASTIC MACHINERY (THAILAND) CO., LTD.

In addition, sales of injection molding machines, peripherals, parts, and molds, etc. are conducted mainly through consolidated subsidiaries NISSEI PLASTIC SINGAPORE PTE LTD., NISSEI (MALAYSIA) SDN.

BHD., TAIWAN NISSEI MACHINERY CORPORATION, NISSEI PLASTIC (HONG KONG) LTD., NISSEI PLASTIC (THAILAND) CO., LTD., NISSEI PLASTIC (SHANGHAI) CO., LTD., and NISSEI PLASTIC (TAICANG) CO., LTD.

Note: Statement under Ⅲ.Description of Business is based on information as of August 31, 2021.

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