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NIFCO KTW GmbH

Weißenburg

Konzernabschluss zum Geschäftsjahr vom 01.01.2017 bis zum 31.12.2017

Konzernlagebericht für das Geschäftsjahr vom 1. Januar 2017 bis 31. Dezember 2017

I. Grundlagen des Konzerns

1. Geschäftsmodell

NIFCO KTW GmbH, Weißenburg in Bayern, bildet zusammen mit der Tochtergesellschaft NIFCO KTW America Corporation, Toccoa, Georgia, U.S.A., einen Teilkonzern (im Folgenden kurz "Konzern" genannt) der NIFCO Inc., Tokio, Japan, und ist vorrangig im Zulieferbereich der Automobilindustrie tätig. Das Hauptumsatzvolumen ist die Spritzgussproduktion von Kunststoffartikeln bzw. Baugruppen sowie die Industrielackierung von diesen Teilen für die Automobilindustrie sowie die Entwicklung von Kunststoffspritzgießwerkzeugen und Versuchsformen.

Ferner werden im kleineren Rahmen auch Teile für andere Industriebereiche produziert.

Unter dem Dach der NIFCO Inc. ist mittel- bis langfristig durch Bündelung der Technologien und des Know-Hows der einzelnen Standorte geplant, den Kunden komplette Komponenten anbieten zu können.

2. Forschung und Entwicklung

Unsere Forschungs- und Entwicklungsaktivitäten erfolgen in Zusammenarbeit mit unseren Kunden. Dabei verfolgen wir das Ziel, technologisch führende und innovative Produkte anzubieten und legen dabei besonderen Wert auf Wirtschaftlichkeit, Umweltschutz und Nachhaltigkeit des gesamten Produktportfolios.

II. Wirtschaftsbericht

1. Gesamtwirtschaftliche und branchenbezogene Rahmenbedingungen

Die wirtschaftliche Lage und Entwicklung des Konzerns ist wesentlich von den gesamtwirtschaftlichen Rahmenbedingungen im Automobilsektor abhängig. Auf Grund der Kundenstruktur ist insbesondere die wirtschaftliche Entwicklung der deutschen Automobilhersteller bedeutend. Aktuell sind noch keine wesentlichen Veränderungen die uns betreffen absehbar.

Die gesamtwirtschaftlichen Rahmenbedingungen im Automobilsektor bewegen sich nach wie vor auf einem zufriedenstellenden Niveau. Die Weltautomobilproduktion verzeichnete im Jahr 2017 ein Wachstum von 2,4 %. (Quelle: Organisation Internationale des Constructeurs d'Automobiles (OICA) "2017 production statistics").

Die Zulassung von Neufahrzeugen im Inland ist um 3 % gestiegen, während der Export im Vergleich zum Vorjahr um 1 % gesunken ist. (Quelle: Verband der deutschen Automobilindustrie (VDA) aus der Pressemeldung "Deutscher PKW-Markt wuchs 2017 um 3 %").

Nach sieben aufeinanderfolgenden Jahren des Wachstums und dem Erreichen des Rekordniveaus von 17,5 Mio Fahrzeugen im Jahr 2016 zeigte der US-Markt 2017 leichte Sättigungstendenzen. Die Light Vehicle-Verkäufe sanken um 2 % auf 17,1 Mio Einheiten. (Quelle: Verband der deutschen Automobilindustrie (VDA) aus der Publikation "Markt International").

2. Geschäftsverlauf

2.1. Allgemeines

Die Gruppe kann auf ein ereignisreiches Jahr 2017 zurückblicken.

Die erzielten Umsätze des Konzerns übertrafen die Planungen bzw. die Prognose aus dem Vorjahr. Hauptursache waren zum einen erhöhte Bedarfe der Kunden für bestehende Projekte in der Mittel- und Oberklasse sowie dem SUV-Segment. Andererseits übertrafen die Umsätze des neuen Werkes in den USA unsere im Vorjahr getroffenen Erwartungen.

Auf Grund des schnellen Wachstums in unserem USA Werk sind auch die Personal- und sonstigen betrieblichen Aufwendungen außerverhältnismäßig stark gestiegen.

Diese Anlaufkosten haben den EBIT unerwartet stark negativ beeinflusst und zu einem höheren negativen Finanzergebnis geführt. In Folge ist der operative Cashflow negativer als erwartet.

In der Tochterfirma "NIFCO KTW America Corporation" (90 % der Anteile liegen bei der Gesellschaft, 10 % bei "NIFCO America Corporation") wurde 2017 mit dem Serienanlauf des ersten Großprojektes begonnen. Im Laufe des Jahres wurden nach und nach weitere Spritzgieß- und Montageanlagen installiert.

III. Darstellung der Lage des Konzerns

a) Ertragslage

Die Ertragslage stellt sich wie folgt dar:

	2017		2016		Veränderung
	T€	v.H.	T€	v.H.	T€	v.H.
Umsatzerlöse	123.948	97,7%	88.773	88,6%	35.175	39,6%
Bestandsveränderung	2.972	2,3%	11.390	11,4%	-8.418	-73,9%
Betriebsleistung	126.920	100,0%	100.163	100,0%	26.757	26,7%
Materialaufwand	76.433	60,2%	62.811	62,7%	13.622	21,7%
Personalaufwand	27.809	21,9%	17.842	17,8%	9.967	55,9%
Abschreibungen	11.854	9,3%	10.675	10,7%	1.179	11,0%
Sonstige betriebliche Aufwendungen	18.497	14,6%	13.832	13,8%	4.665	33,7%
Sonstige Steuern	9	0,0%	4	0,0%	5	> 100%
Betriebsaufwand	134.602	> 100%	105.164	> 100%	29.438	28,0%
Sonstige betriebliche Erträge	1.129	0,9%	396	0,4%	733	> 100%
Betriebsergebnis	-6.553	-5,2%	-4.605	-4,6%	-1.948	42,3%
Zinsen und ähnliche Aufwendungen	748	0,6%	299	0,3%	449	> 100%
Finanzergebnis	748	0,6%	299	0,3%	449	> 100%
Ergebnis vor Ertragsteuern	-7.301	-5,8%	-4.904	-4,9%	-2.397	48,9%
Ertragsteuern	-3.325	-2,6%	1.622	1,6%	-4.947	> 100%
Jahresfehlbetrag	-10.626	-8,4%	-3.282	-3,3%	-7.344	> 100%
Anteile anderer Gesellschafter am Jahresfehlbetrag	151	0,1%	27	0,0%	124	> 100%
Konzernjahresfehlbetrag	-10.475	-8,3%	-3.255	-3,2%	-7.220	> 100%

Der Konzernjahresfehlbetrag resultiert zum einen aus Abschreibungen, die im Rahmen der zum 31. Dezember 2014 erfolgten Anwachsung auf aktivierte immaterielle Vermögensgegenstände einschließlich eines Geschäfts- und Firmenwertes i.H.v. T€ 7.600 (Vj. T€ 8.405) entfallen. Zum anderen stiegen Personalkosten um T€ 9.967 sowie Materialaufwand um T€ 13.622, welche primär auf den Anlauf des USA-Werkes zurückzuführen sind.

Die in Folge des Umsatzanstiegs gestiegene Betriebsleistung konnten die gestiegenen Betriebsaufwendungen nicht kompensieren.

Die Ertragsteuern beinhalten im wesentlichen Aufwendungen für Ertragsteuern des laufenden Jahres bzw. Vorjahres i.H.v. T€ 2.974 (Vj. T€ 1.207) sowie Aufwendungen für die Auflösung der aktiven Steuerlatenz i.H.v. T€ 460.

Die Umsatzerlöse sind im Vergleich zum Vorjahr um T€ 35.175 gestiegen und beliefen sich in 2017 auf T€ 123.948. Die Steigerung der Umsatzerlöse ist primär auf Erhöhungen der Bedarfszahlen von laufenden Projekten sowie auf den Anlauf von Neuprojekten in Deutschland zurückzuführen. Weiterhin konnte der Umsatz durch den Anlauf unseres USA-Projektes und einem erhöhten Werkzeugumsatz gesteigert werden. Die Aufgliederung der Umsätze nach Regionen/Segmenten ist im Anhang ersichtlich.

Das Betriebsergebnis (EBIT) beläuft sich in 2017 auf T€ -6.553 (Vj. T€ -4.605).

b) Vermögens- und Finanzlage

Die Vermögens- und Kapitalstruktur des Konzerns zeigen folgendes Bild:

	2017		2016		Veränderung
	T€	v.H.	T€	v.H.	T€	v.H.
Forderungen und sonstige
Vermögensgegenstände	26.130	19,1%	17.377	13,7%	8.753	50,4%
Bank, Kasse	4.626	3,4%	11.771	9,3%	-7.145	-60,7%
Rechnungsabgrenzungsposten	146	0,1%	134	0,1%	12	9,0%
Kurzfristig gebundenes Vermögen	58.306	42,7%	54.418	43,0%	3.888	7,1%
Aktive latente Steuern	4.232	3,0%	4.692	3,7%	-460	-9,8%
Gesamtvermögen	136.598	100,0%	126.458	100,0%	10.140	8,0%
Gezeichnetes Kapital	25	0,0%	25	0,0%	0	0,0%
Kapitalrücklage	70.446	51,6%	60.050	47,5%	10.396	17,3%
Verlustvortrag	-3.412	-2,5%	-157	-0,1%	-3.255	> 100%
Konzernverlust	-10.475	-7,7%	-3.255	-2,6%	-7.220	> 100%
Anteile anderer Gesellschafter	2.656	1,9%	1.825	1,4%	831	45,5%
Eigenkapitaldifferenz
aus Währungsumrechnung	-882	-0,6%	842	0,7%	-1.724	> 100%
Buchmäßiges Eigenkapital	58.358	42,7%	59.330	46,9%	-972	-1,6%
Kurz- bis mittelfristiges Fremdkapital	45.162	33,1%	32.966	26,1%	12.196	37,0%
Kurz- bis mittelfristige Verbindlichkeiten im Verbundbereich	10.043	7,4%	23.073	18,2%	-13.030	-56,5%
Langfristiges Verbindlichkeiten
im Verbundbereich	13.357	9,8%	0	0,0%	13.357	-
Langfristiges Fremdkapital	9.678	7,1%	11.089	8,8%	-1.411	-12,7%
Fremdkapital	78.240	57,3%	67.128	53,1%	11.112	16,6%
Gesamtpassiva	136.598	100,0%	126.458	100,0%	10.140	8,0%

Der nicht ausgeschöpfte Kreditrahmen betrug zum 31. Dezember 2017 T€ 15.000.

Die immateriellen Vermögensgegenstände beinhalten im Wesentlichen die folgenden aus dem Erwerb und anschließender Anwachsung der Anteile an der KTW KG und JK KG resultierenden Vermögensgegenstände und machen insgesamt 20,4 % (Vj. 28,0 %) der Bilanzsumme aus:

· fortgeschriebener Geschäfts- und Firmenwert	T€ 21.280 (Vj. T€ 24.321)
· fortgeschriebener Kundenstamm	T€ 6.463 (Vj. T€ 11.023)

Investitionen i.H.v. T€ 20.573 (Vj. T€ 21.035) wurden im Wesentlichen in das Sachanlagevermögen getätigt (T€ 20.498). Davon entfällt der Großteil auf das Werk in den USA (T€ 17.566), das mit neuen Maschinen i.H.v. T€ 7.943 ausgestattet wurde sowie Anzahlungen i.H.v. T€ 8.441 geleistet wurden.

Trotzdem sich der Finanzmittelfonds um T€ 7.146 gemindert hat, ist die Finanzlage als stabil zu bezeichnen, da im Geschäftsjahr zusätzliches Eigenkapital zugeführt wurde. Der Cashflow aus laufender Geschäftstätigkeit ist zwar mit T€ 5.884 negativ, hat sich jedoch im Vergleich zum Vorjahr um T€ 5.431 verbessert. Finanziert wurde der Konzern im Wesentlichen durch Zuführungen zur Kapitalrücklage durch die Gesellschafter (T€ 11.552). Nichtsdestotrotz wurden Verbindlichkeiten, insbesondere die Tilgungen aus Krediten i.H.v. T€ 17.674, innerhalb der Zahlungsfristen beglichen.

Insgesamt zeigt die Ertragslage des Konzerns eine unerwartete Entwicklung. Der Anstieg des Konzernverlustes ist verursacht durch unerwartet hohe Anlaufverluste in den USA. Die Finanz- und Vermögenslage stellt sich unserer Einschätzung nach weiterhin als solide dar. Die Finanzierung des Konzerns ist nicht zuletzt durch die Gesellschafterfinanzierung gesichert.

Die Eigenkapitalquote beträgt 42,7 % (Vj. 46,9 %). Das Fremdkapital von T€ 78.240 (57,3 % der Bilanzsumme) entfällt mit T€ 23.400 (17,1 % der Bilanzsumme) auf verbundene Unternehmen, sodass eine Verschuldung gegenüber Dritten von T€ 54.840 (40,2 % der Bilanzsumme) verbleibt.

IV. Finanzielle und nichtfinanzielle Leistungsindikatoren

Wir ziehen für unsere interne Unternehmenssteuerung v.a. die Kennzahlen Umsatz, operativer Cashflow sowie EBIT heran.

Der Umsatz stieg von T€ 88.773 in 2016 auf T€ 123.948 in 2017, hauptsächlich durch Anläufe von Neuprojekten (u.a. auch durch den Anlauf in unserem USA-Werk) sowie erhöhten Abrufzahlen von bestehenden Projekten.

Der Cashflow aus der laufenden Geschäftstätigkeit liegt mit T€ -5.884 unter den Planungen. Ursache war der unerwartet hohe Verlust in unserem Werk in den USA.

Das EBIT hat sich im Vergleich zum Vorjahr um 42,3 % reduziert.

Das operative EBIT (Betriebsergebnis + Abschreibung des Geschäfts- und Firmenwertes + Abschreibung Kundenstamm) ist von 2016 auf 2017 um T€ 2.752 gesunken.

Nicht finanzielle Leistungsindikatoren sind von untergeordneter Bedeutung und deshalb nicht aufgeführt.

V. Prognosebericht

Die Prognose steht unter der Annahme, dass die für die Geschäftsentwicklung des Konzerns wesentlichen gesamtwirtschaftlichen Rahmenbedingungen im Automobilsektor sich stabil entwickeln. Die Prognose für 2018 basiert auf der aktuellen bestehenden Auftragslage des Konzerns.

Die Auftragslage für die kommenden Jahre kann als äußerst stabil bewertet werden. Es liegen langfristige Direktaufträge der großen Automobilhersteller vor. Der Auslauf von Fahrzeugmodellen wird durch Neuaufträge kompensiert.

Durch den Einstieg bei Audi und Daimler als Direktlieferant liegen auch für die nächsten Jahre noch weitere Wachstumspotentiale vor.

In den USA werden in 2018 weitere Projekte für die Kunden BMW und Daimler in Serie gehen.

Hierzu werden in der bereits fertig gestellten Hallenerweiterung weitere Spritzgießmaschinen installiert werden.

Am Standort Weißenburg sind aktuell nur kleinere Investitionen im Bereich Spritzguss und Logistik geplant.

Für das Jahr 2018 wird mit einem im Verhältnis zu 2017 um 24 % höherem Umsatz und einer Erhöhung des operativen EBIT's in Richtung eines ausgeglichenen Ergebnisses gerechnet. Der operative Cashflow wird gemäß unseren Erwartungen in Folge der Ergebnisverbesserung entsprechend steigen.

VI. Chancen- und Risikobericht

a) Risikobericht

Rechtliche Risiken erwachsen insbesondere aus möglichen Gewährleistungsansprüchen aufgrund von Kundenreklamationen im Projektgeschäft. Wir versuchen, durch effizientes Qualitätsmanagement entsprechende Risiken zu überwachen. Weiterhin wurde bereits eine entsprechende Rückstellung gebildet. Darüber hinaus ist kein wesentliches Risiko ersichtlich. Gegenüber dem Vorjahr ergeben sich keine wesentlichen Änderungen in der Risikoeinschätzung.

Wir sind zertifiziert nach ISO/TS 16949:2009.

Personalrisiken begrenzen wir durch intensive Weiterbildungs- und Nachwuchskräfteprogramme. Weiterhin investieren wir viel in ein attraktives Arbeitsumfeld und in eine gute Außendarstellung. Das Risiko in diesem Bereich ist somit als gering einzustufen. Gegenüber dem Vorjahr ergeben sich keine wesentlichen Änderungen in der Risikoeinschätzung.

Umsatzrisiken:

Unsere Produkte laufen über einen Zeitraum von etwa 5 - 6 Jahren. Risiken der künftigen geschäftlichen Entwicklung für die Konzernertragslage bestehen darin, dass unsere Kunden die vorkalkulierten Abnahmemengen für die Produktlaufzeiten nicht garantieren können. Unser Umsatz verteilt sich auf wenige Kunden. Hier konnte mit der Gewinnung von Audi und Daimler jedoch bereits der Grundstein für eine größere Streuung des Kundenkreises gelegt werden, was sich in den nächsten Jahren verstärkt auch auf eine Streuung des Umsatzes auswirken wird. Als Direktlieferant mit sehr guten Kundenbeziehungen sehen wir hier jedoch aktuell kein Risiko. Gegenüber dem Vorjahr ergeben sich keine wesentlichen Änderungen in der Risikoeinschätzung.

Zusätzliche Risiken ergeben sich durch Insolvenzen von Kunden und daraus entstehende Forderungsausfälle. Diese sind auf Grund des Kundenportfolios jedoch als sehr gering einzustufen. Durch ein gut funktionierendes Forderungsmanagement gelang es bisher, Forderungsausfälle zu vermeiden.

Ein Risiko bezüglich der aktuellen politischen Situation in den USA sehen wir derzeit nicht. Die Preise für die Zukaufteile, welche von Mexiko in unser Werk Toccoa geliefert werden, sind von BMW fixiert und in unseren Kalkulationen integriert und werden somit immer zum Endkunden durchgereicht. Gegenüber dem Vorjahr ergeben sich keine wesentlichen Änderungen in der Risikoeinschätzung dieser zusätzlichen Risiken.

b) Chancenbericht

Chancen bestehen darin, sich durch Spezialisierung (z. B. Herstellung komplexer Baugruppen, exklusive Beschichtungen der Kunststoffteile vollständig durch die Gruppe ohne die Einbeziehung von Dritten) Marktnischen zu erschließen, um angemessene Preise trotz des enormen Preisdrucks der Automobilindustrie erzielen zu können.

Chancen und weiteres Wachstumspotential sehen wir in den neu geknüpften Kundenverbindungen zu Audi und Daimler sowie in der geplanten Internationalisierung.

Mit dem neuen Werk in den USA wird ein Wettbewerbsvorteil gegenüber vielen Marktbegleitern geschaffen. Auch eröffnet dieses Werk zukünftig komplett neue Kundenkreise im Bereich der amerikanischen Automotive-Hersteller.

Gesamtaussage:

Mit dem Gesellschafter NIFCO Inc. ergeben sich für die Zukunft weitere Vorteile bei neuen Produkten, Technologien und Kunden, die in den nächsten Jahren genutzt werden können.

Risiken der künftigen Entwicklung sehen wir weiterhin in einem schwierigen Wettbewerbsumfeld im Automobilzulieferbereich. So stehen die Zulieferer weiterhin unter einem sehr hohen Preis- und Qualitätsdruck. Die Marktmacht auf der Kundenseite wird hierbei vollständig ausgenutzt.

Vor dem Hintergrund unserer finanziellen Stabilität und unseres Know-hows sehen wir uns für die Bewältigung der künftigen Risiken aber gut gerüstet. Risiken, die den Fortbestand unseres Unternehmens gefährden könnten, sind derzeit nicht erkennbar.

VII. Risikoberichterstattung über die Verwendung von Finanzinstrumenten

Zu den im Unternehmen bestehenden Finanzinstrumenten zählen im Wesentlichen Forderungen, Verbindlichkeiten und Guthaben bei Kreditinstituten.

Unsere Zahlungsströme steuern wir auf der Grundlage einer Finanz- und Liquiditätsplanung. In Bezug auf unsere liquiden Mittel, Forderungen und Verbindlichkeiten sind wir den branchenüblichen Risiken aus Preisänderungen, Forderungsausfällen, fehlender Liquidität oder aus Zahlungsstromschwankungen ausgesetzt.

Konkrete Risiken mit Auswirkungen auf die wirtschaftliche Lage oder die voraussichtliche Entwicklung sind nicht erkennbar.

Weißenburg, den 15. Juni 2018

Toshiyuki Yamamoto

Masaya Nagaoka

Roland Furtmayr

Karsten Schmidt

Sanshiro Ogasawara

Tsukasa Naganawa

Konzernbilanz zum 31. Dezember 2017

Aktiva

	31. Dez. 2017 €	31. Dez. 2016 €
A. Anlagevermögen
I. Immaterielle Vermögensgegenstände
1. Software	106.523,00	71.953,00
2. Kundenstamm	6.463.245,41	11.023.266,65
3. Geschäfts- oder Firmenwert	21.280.328,00	24.320.375,00
	27.850.096,41	35.415.594,65
II. Sachanlagen
1. Bauten auf fremden Grundstücken	9.097.338,33	10.553.419,68
2. technische Anlagen und Maschinen	22.162.108,62	14.401.473,93
3. andere Anlagen, Betriebs- und Geschäftsausstattung	3.238.205,54	3.253.820,59
4. geleistete Anzahlungen und Anlagen im Bau	11.711.946,74	3.724.057,68
	46.209.599,23	31.932.771,88
	74.059.695,64	67.348.366,53
B. Umlaufvermögen
I. Vorräte
1. Roh-, Hilfs- und Betriebsstoffe	2.827.098,12	2.856.811,01
2. unfertige Erzeugnisse, unfertige Leistungen	2.106.772,56	2.207.288,59
3. fertige Erzeugnisse und Waren	20.002.467,68	18.071.373,29
4. geleistete Anzahlungen	2.468.028,22	1.999.929,93
	27.404.366,58	25.135.402,82
II. Forderungen und sonstige Vermögensgegenstände
1. Forderungen aus Lieferungen und Leistungen	24.541.225,11	15.798.911,07
2. sonstige Vermögensgegenstände	1.589.024,00	1.577.846,23
	26.130.249,11	17.376.757,30
III. Kassenbestand, Guthaben bei Kreditinstituten	4.625.510,14	11.771.390,00
	58.160.125,83	54.283.550,12
C. Rechnungsabgrenzungsposten	145.961,36	134.194,70
D. Aktive latente Steuern	4.232.386,86	4.692.113,08
	136.598.169,69	126.458.224,43
Passiva
	31. Dez. 2017 €	31. Dez. 2016 €
A. Eigenkapital
I. Gezeichnetes Kapital	25.000,00	25.000,00
II. Kapitalrücklage	70.446.705,05	60.049.516,90
III. Verlustvortrag	-3.412.486,10	-157.183,49
IV. Konzernverlust	-10.475.164,29	-3.255.302,61
V. Anteile anderer Gesellschafter	2.655.952,18	1.825.488,80
VI. Eigenkapitaldifferenz aus Währungsumrechnung	-882.100,95	842.183,71
	58.357.905,89	59.329.703,31
B. Rückstellungen
1. Steuerrückstellungen	1.411.516,70	648.472,56
2. sonstige Rückstellungen	6.271.533,51	4.100.265,06
	7.683.050,21	4.748.737,62
C. Verbindlichkeiten
1. Verbindlichkeiten gegenüber Kreditinstituten	36.026.797,78	30.089.412,77
2. erhaltene Anzahlungen	1.023.471,73	549.493,30
3. Verbindlichkeiten aus Lieferungen und Leistungen	8.340.966,52	6.998.525,33
4. Verbindlichkeiten gegenüber verbundenen Unternehmen	23.400.079,63	23.073.045,76
5. sonstige Verbindlichkeiten	1.765.897,93	1.669.306,34
	70.557.213,59	62.379.783,50
	136.598.169,69	126.458.224,43

Konzern-Gewinn- und Verlustrechnung für das Geschäftsjahr vom 1. Januar 2017 bis 31. Dezember 2017

	2017 €	2016 €
1. Umsatzerlöse	123.948.280,30	88.773.323,38
2. Erhöhung des Bestands an fertigen und unfertigen Erzeugnissen	2.971.781,97	11.389.676,32
3. sonstige betriebliche Erträge	1.129.070,26	395.734,88
- davon Erträge aus Währungsumrechnung: € 23.111,92 (Vorjahr: € 28.912,74)
4. Materialaufwand
a) Aufwendungen für Roh-, Hilfs- und Betriebsstoffe und für
bezogene Waren	-56.801.040,88	-44.133.379,20
b) Aufwendungen für bezogene Leistungen	-19.632.360,53	-18.678.083,68
5. Personalaufwand
a) Löhne und Gehälter	-23.228.641,51	-14.950.385,45
b) soziale Abgaben	-4.580.306,03	-2.891.315,03
6. Abschreibungen auf immaterielle Vermögensgegenstände des	-11.853.647,59	-10.675.120,05
Anlagevermögens und Sachanlagen
7. sonstige betriebliche Aufwendungen	-18.497.472,01	-13.832.334,31
- davon Aufwendungen aus Währungsumrechnung: € 364.423,27
(Vorjahr: € 16.648,90)
8. Sonstige Zinsen und ähnliche Erträge	0,00	28,39
9. Zinsen und ähnliche Aufwendungen	-748.330,63	-298.909,15
- davon an verbundene Unternehmen:
€ 291.870,61 (Vorjahr: € 182.497,59)
10. Steuern vom Einkommen und vom Ertrag	-3.325.239,63	1.622.199,44
- davon Aufwendungen aus der Zuführung und Auflösung latenter Steuern:
€ 459.726,22 (Vorjahr Ertrag: € 2.906.896,51)
11. Konzernergebnis nach Steuern	-10.617.906,28	-3.278.564,45
12. Sonstige Steuern	-8.657,83	-4.011,00
13. Konzernjahresfehlbetrag	-10.626.564,11	-3.282.575,45
14. Anteile anderer Gesellschafter am Jahresfehlbetrag	151.399,82	27.272,84
15. Konzernverlust	-10.475.164,29	-3.255.302,61

Konzernkapitalflussrechnung 2017

	2017 EUR	2016 EUR
Periodenergebnis vor außerordentlichen Posten	-10.626.564,11	-3.282.575,45
+ Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Gegenstände des Sachanlagevermögens	11.853.647,59	10.675.120,05
+/- Zunahme/Abnahme der Rückstellungen	2.171.268,45	1.721.035,63
+/- Sonstige Zahlungsunwirksame Aufwendungen/Erträge	700.630,95	173.148,91
-/+ Gewinn/Verlust aus dem Abgang von Gegenständen des Anlagevermögens	353.677,51	4.290,95
-/+ Zunahme/Abnahme der Vorräte, der Forderungen aus Lieferungen und Leistungen sowie anderer Aktiva	-11.085.105,61	-23.325.915,88
+/- Zunahme/Abnahme der Verbindlichkeiten aus Lieferungen und Leistungen sowie anderer Passiva	-1.164.544,68	4.857.097,77
+/- Zinsaufwendungen/Zinserträge	748.330,63	298.880,76
+/- Ertragsteueraufwand/-ertrag	3.325.239,63	-1.622.199,44
-/+ Ertragsteuerzahlungen	-2.160.083,18	-813.998,04
Cashflow aus laufender Geschäftstätigkeit	-5.883.502,82	-11.315.114,74
- Auszahlungen für Investitionen in immaterielle Vermögensgegenstände	-74.213,01	-60.610,68
- Auszahlungen für Investitionen in Sachanlagen	-20.498.407,24	-20.974.290,78
+ Erhaltene Zinsen	0,00	28,39
Cashflow aus der Investitionstätigkeit	-20.572.620,25	-21.034.873,07
+ Einzahlung aus der Begebung von Anleihen und der Aufnahme von (Finanz-) Krediten	25.870.552,49	32.479.960,95
- Auszahlungen aus der Tilgung von Anleihen und (Finanz-) Krediten	-17.674.110,50	-3.347.890,00
+ Einzahlungen aus Eigenkapitalzuführungen von Gesellschaftern des Mutterunternehmens	10.397.188,15	0,00
+ Einzahlungen aus Eigenkapitalzuführungen von anderen Gesellschaften	1.155.243,12	0,00
- Gezahlte Zinsen	-438.630,05	-608.899,34
Cashflow aus der Finanzierungstätigkeit	19.310.243,21	28.523.171,61
Zahlungswirksame Veränderung des Finanzmittelfonds	-7.145.879,86	-3.826.816,20
Finanzmittelfonds am Anfang der Periode	11.771.390,00	15.598.206,20
Finanzmittelfonds am Ende der Periode	4.625.510,14	11.771.390,00

Konzerneigenkapitalspiegel zum 31. Dezember 2017

	Mutterunternehmen
	Gezeichnetes Kapital EUR	Kapitalrücklage EUR	Erwirtschaftetes Konzerneigenkapital EUR	kumuliertes übriges Konzernergebnis EUR	Eigenkaptial Mutterunternehmen EUR
Eröffnungsbilanz	25.000,00	60.049.516,90	-157.183,49	448.914,50	60.366.247,91
Währungsumrechnung				393.269,21	393.269,21
Zuführung in					0,00
Kapitalrücklage			-3.255.302,61		-3.255.302,61
Stand am 31.12.2016	25.000,00	60.049.516,90	-3.412.486,10	842.183,71	57.504.214,51
Währungsumrechnung				-1.724.284,66	-1.724.284,66
Zuführung in
Kapitalrücklage		10.397.188,15			10.397.188,15
Konzernjahresfehlbetrag			-10.475.164,29		-10.475.164,29
Stand am 31.12.2017	25.000,00	70.446.705,05	-13.887.650,39	-882.100,95	55.701.953,71

	Minderheitsgesellschafter			Konzerneigenkapital
	Minderheitenkapital EUR	kumuliertes übriges Konzernergebnis EUR	Eigenkapital EUR	EUR
Eröffnungsbilanz	1.788.361,42	20.405,80	1.808.767,22	62.175.015,13
Währungsumrechnung		43.994,42	43.994,42	437.263,63
Zuführung in				0,00
Kapitalrücklage		-27.272,84	-27.272,84	-3.282.575,45
Stand am 31.12.2016	1.788.361,42	37.127,38	1.825.488,80	59.329.703,31
Währungsumrechnung		-173.379,92	-173.379,92	-1.897.664,58
Zuführung in
Kapitalrücklage	1.155.243,12		1.155.243,12	11.552.431,27
Konzernjahresfehlbetrag		-151.399,82	-151.399,82	-10.626.564,11
Stand am 31.12.2017	2.943.604,54	-287.652,36	2.655.952,18	58.357.905,89

Konzernanhang für das Geschäftsjahr vom 1. Januar 2017 bis 31. Dezember 2017

I. ALLGEMEINE ANGABEN ZUM KONZERNABSCHLUSS

1. Anwendung der handelsrechtlichen Vorschriften

Die NIFCO KTW GmbH, Weißenburg, (im Folgenden kurz "Gesellschaft" genannt) hat ihren Sitz in Weißenburg und ist dort beim Amtsgericht im Handelsregister, Abteilung B, unter Nummer 5941 seit dem 24. November 2014 eingetragen.

Der Konzernabschluss der Gesellschaft, für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2017 wurde nach den Vorschriften des Dritten Buches des Handelsgesetzbuches sowie des GmbH-Gesetzes aufgestellt.

Hinsichtlich der Gliederung der Gewinn- und Verlustrechnung hat die Gesellschaft das Gesamtkostenverfahren gemäß § 275 Abs. 2 HGB gewählt.

2. Angaben zum Konsolidierungskreis

Zum Kreis der vollkonsolidierten Unternehmen gehört neben der Muttergesellschaft NIFCO KTW GmbH die einzige Tochtergesellschaft NIFCO KTW America Corporation, Toccoa, Georgia, U.S.A. ("Corporation"):

	Anteile am Kapital %	Anschaffungskosten TEUR	Eigenkapital TEUR	Jahresergebnis TEUR
NIFCO KTW America Corporation	90	1	10.467	-14.254

3. Konsolidierungsgrundsätze

Vollkonsolidierung

Die Kapitalkonsolidierung der in den Konzernabschluss einbezogenen Tochtergesellschaft erfolgt gemäß § 301 Abs. 1 HGB nach der Neubewertungsmethode. Danach werden die Anschaffungskosten der Anteile an dem verbundenen Unternehmen mit dem auf diese Anteile entfallenden Betrag (Zeitwert) des anteiligen Eigenkapitals des Unternehmens zum Erwerbszeitpunkt verrechnet. Ein Unterschiedsbetrag ist nicht entstanden.

Die Erstkonsolidierung des verbundenen Unternehmens Corporation erfolgte mit deren Gründungsstichtag zum 27. April 2015.

Schuldenkonsolidierung

Die Schuldenkonsolidierung erfolgt gemäß § 303 HGB. Danach wurden Forderungen und Verbindlichkeiten zwischen den in den Konzernabschluss einbezogenen Unternehmen konsolidiert.

Aufwands- und Ertragskonsolidierung

Für Aufwendungen und Erträge aus konzerninternen Lieferungen und Leistungen erfolgte eine Konsolidierung nach § 305 HGB innerhalb des Konsolidierungskreises.

Zwischengewinneliminierung

Zwischengewinne aus dem konzerninternen Lieferungs- und Leistungsverkehr werden im Geschäftsjahr gemäß § 304 Abs. 1 HGB sowohl für das Anlagevermögen als auch für das Umlaufvermögen unter Berücksichtigung von Steuerabgrenzungen eliminiert.

Latente Steuern

Latente Steuern werden auf die Unterschiede in den Bilanzansätzen der Handelsbilanz II und der jeweiligen Steuerbilanz sowie auf ergebniswirksame Konsolidierungsmaßnahmen angesetzt, sofern sich diese in späteren Geschäftsjahren voraussichtlich abbauen. Von dem Aktivierungswahlrecht des § 274 Abs. 1 Satz 2 HGB wurde Gebrauch gemacht.

II. BILANZIERUNGS- UND BEWERTUNGSGRUNDSÄTZE

1. Anlagevermögen

Erworbene immaterielle Vermögensgegenstände werden zu Anschaffungskosten vermindert um planmäßige Abschreibungen angesetzt.

Das Sachanlagevermögen ist zu Anschaffungskosten vermindert um planmäßige Abschreibungen angesetzt.

Bei den Zugängen von Gegenständen des Sachanlagevermögens wurden die Abschreibungen pro rata temporis vorgenommen.

Bewegliche Wirtschaftsgüter, die zwischen dem 1. Januar 2008 und dem 31. Dezember 2009 angeschafft wurden und deren Anschaffungskosten € 150,00, aber nicht € 1.000,00, übersteigen, wurden als Sammelposten im Sinne des § 6 Abs. 2a EStG vermindert um planmäßige Abschreibungen in der steuerlich zulässigen Höhe angesetzt. Geringwertige Wirtschaftsgüter im Sinne des § 6 Abs. 2 EStG, die seit dem 1. Januar 2010 angeschafft werden, werden im Zugangsjahr in voller Höhe abgeschrieben.

Abschreibungen von Gegenständen des Anlagevermögens erfolgen wie folgt:

Anlageposition	Abschreibungsmethode	Nutzungsdauer
Geschäfts-undFirmenwert	linear	10 Jahre
Kundenstamm	korrelativ/Budget bezogen	8 Jahre
Übrige immaterielle Vermögensgegenstände	linear	3-6 Jahre
Bauten auf fremden Grundstücken	linear	3 - 33 Jahre
Technische Anlagen und Maschinen	linear	2 - 20 Jahre
Andere Anlagen, Betriebs- und Geschäftsausstattung	linear	1-19 Jahre
Sammelposten	linear	5 Jahre

2. Vorräte

Roh-, Hilfs- und Betriebsstoffe werden zu Anschaffungskosten zuzüglich Anschaffungsnebenkosten oder mit dem niedrigeren beizulegenden Wert angesetzt.

Die Herstellungskosten der unfertigen und fertigen Erzeugnisse umfassen die Einzelkosten, angemessene Teile der Materialgemeinkosten, der Fertigungsgemeinkosten und des Wertverzehrs des Anlagevermögens, soweit dieser durch die Fertigung veranlasst ist. Außerdem werden angemessene Teile der allgemeinen herstellungsbezogenen Verwaltungskosten einbezogen. Das strenge Niederstwertprinzip wird beachtet.

Geleistete Anzahlungen werden zu Anschaffungskosten angesetzt.

3. Forderungen und sonstige Vermögensgegenstände

Die Forderungen und sonstigen Vermögensgegenstände werden mit dem Nennbetrag oder mit dem am Bilanzstichtag niedrigeren beizulegenden Wert angesetzt. Sonstige Vermögensgegenstände i.H.v. € 332.863,67 haben eine Restlaufzeit von über einem Jahr. Die übrigen haben eine Restlaufzeit von unter einem Jahr.

Dem allgemeinen Kreditrisiko ist durch eine pauschale Wertberichtigung zu Forderungen in Höhe von 1 % auf die nicht einzelwertberichtigten Forderungen ausreichend Rechnung getragen.

Flüssige Mittel werden zum Nennwert bewertet.

4. Rückstellungen

Sonstige Rückstellungen werden in Höhe des nach vernünftiger kaufmännischer Beurteilung notwendigen Erfüllungsbetrags angesetzt.

Die Rückstellungen für Dienstjubiläen wurden mit dem durchschnittlichen, laufzeitadäquaten Zinssatz der Deutschen Bundesbank der letzten sieben Jahre abgezinst.

5. Verbindlichkeiten

Verbindlichkeiten werden mit dem Erfüllungsbetrag angesetzt.

6. Verbundene Unternehmen

Als verbundene Unternehmen werden alle Gesellschaften angesehen, auf welche die NIFCO Inc., Tokio, Japan, unmittel- oder mittelbar einen beherrschenden Einfluss ausüben kann.

7. Fremdwährungsumrechnung

Der Jahresabschluss enthält auf fremde Währung lautende Sachverhalte, die in Euro umgerechnet wurden.

Forderungen und Verbindlichkeiten in Fremdwährung werden mit dem Kurs am Tag des Geschäftsvorfalls bewertet.

Zum Bilanzstichtag werden Forderungen und Verbindlichkeiten in fremder Währung mit einer Restlaufzeit von weniger als einem Jahr mit dem Devisenkassamittelkurs am Bilanzstichtag bewertet.

Forderungen und Verbindlichkeiten in fremder Währung mit einer Restlaufzeit von mehr als einem Jahr werden mit dem Devisenkassamittelkurs am Bilanzstichtag unter Beachtung des Niederstwert- bzw. Höchstwertprinzips bewertet.

8. Latente Steuern

Für die Ermittlung latenter Steuern aufgrund von temporären und quasi-permanenten Differenzen zwischen den handelsrechtlichen Wertansätzen von Vermögensgegenständen, Schulden und Rechnungsabgrenzungsposten und ihren steuerlichen Wertansätzen werden diese mit den unternehmensindividuellen Steuersätzen im Zeitpunkt des Abbaus der Differenzen bewertet und die Beträge der sich ergebenden Steuerbelastung nicht abgezinst.

III. ERLÄUTERUNGEN ZU DEN POSTEN DER KONZERNBILANZ UND DER KONZERN-GEWINN- UND VERLUSTRECHNUNG

1. Immaterielle Vermögensgegenstände

Der Geschäfts- und Firmenwert und der Kundenstamm resultieren aus der Anwachsung der KTW KG (KTW Kunststofftechnik Weißenburg GmbH & Co. KG) sowie der JK KG (JK Industrielackierungen GmbH & Co. KG) mit Wirkung zum 31. Dezember 2014.

Der Auftragsbestand und der Kundenstamm werden in der Höhe abgeschrieben, wie das Verhältnis der budgetierten Umsatzerlöse pro Jahr zu den gesamten budgetierten Umsatzerlösen steht.

Der Geschäfts- und Firmenwert wird über eine voraussichtliche Nutzungsdauer von 10 Jahren linear abgeschrieben. Die Nutzungsdauer ist durch die langen Lebenszyklen der Produkte der Gesellschaft sowie die langfristig bestehenden Kundenbeziehungen begründet.

2. Anlagevermögen

Zur Entwicklung des Anlagevermögens im Geschäftsjahr 2017 wird auf den separat dargestellten Anlagenspiegel verwiesen (siehe Anlage 2 zu diesem Anhang).

3. Latente Steuern

Die aktiven latenten Steuern ergeben sich unter Anwendung eines Steuersatzes von 28,075 % für Zwecke der Handelsbilanz II sowie von 34 % für die Berechnung bezüglich der Zwischengewinneliminierung. Für die Ermittlung der aktiven latenten Steuern aus Verlustvorträgen wurde ein Steuersatz von 24,769 % zugrunde gelegt.

Zur Entwicklung der latenten Steuern wird auf die separat dargestellte Übersicht verwiesen (siehe Anlage 1 zu diesem Anhang).

4. Sonstige Rückstellungen

Die ausgewiesenen sonstigen Rückstellungen in Höhe von T€ 6.272 enthalten Rückstellungen für ausstehende Rechnungen (T€ 2.023) personalbezogene Rückstellungen (T€ 1.787), Garantierückstellungen (T€ 996), Rückstellungen für Projektnachlaufkosten (T€ 657), Rückstellungen für Schadenersatz (T€ 350), Rückstellungen für Jahresabschlusskosten (T€ 189) und Verschiedene (T€ 270).

5. Verbindlichkeiten gegenüber verbundenen Unternehmen

Die Verbindlichkeiten gegenüber verbunden Unternehmen resultieren i.H.v. T€ 23.398 gegenüber dem Gesellschafter aus einem der Gesellschaft gewährten Darlehen sowie i.H.v. T€ 2 aus dem Liefer- und Leistungsverkehr mit einer anderen Gesellschaft aus dem Konzernverbund.

6. Verbindlichkeiten

Aufgliederung der Verbindlichkeiten

(Verbindlichkeitenspiegel)

	bis 1 Jahr €	1 bis 5 Jahre €	über 5 Jahre €	Gesamtbetrag €
Verbindlichkeiten gegenüber Kreditinstituten	26.348.443,99	3.000.000,00	6.678.353,79	36.026.797,78
	(Vorjahr: 19.000.000,00)	(Vorjahr: 3.500.000,00)	(Vorjahr: 7.589.412,77)	(Vorjahr: 30.089.412,77)
erhaltene Anzahlungen	1.023.471,73	0,00	0,00	1.023.471,73
	(Vorjahr: 549.493,30)	(Vorjahr: 0,00)	(Vorjahr: 0,00)	(Vorjahr: 549.493,30)
Verbindlichkeiten aus Lieferungen und Leistungen	8.340.966,52	0,00	0,00	8.340.966,52
	(Vorjahr: 6.998.525,33)	(Vorjahr: 0,00)	(Vorjahr: 0,00)	(Vorjahr: 6.998.525,33)
Verbindlickeiten gegenüber verbundenen Unternehmen	5.043.372,06	5.000.000,00	13.356.707,57	23.400.079,63
	(Vorjahr: 23.073.045,76)	(Vorjahr: 0,00)	(Vorjahr: 0,00)	(Vorjahr: 23.073.045,76)
Sonstige Verbindlichkeiten	1.765.897,93	0,00	0,00	1.765.897,93
	(Vorjahr: 1.669.306,34)	(Vorjahr: 0,00)	(Vorjahr: 0,00)	(Vorjahr: 1.669.306,34)
- davon aus Steuern:	0,00	0,00	0,00	0,00
	(Vorjahr: 1.030.944,17)	(Vorjahr: 0,00)	(Vorjahr: 0,00)	(Vorjahr: 1.030.944,17)
- davon im Rahmen der soz. Sicherheit	0,00	0,00	0,00	0,00
	(Vorjahr: 24.099,50)	(Vorjahr: 0,00)	(Vorjahr: 0,00)	(Vorjahr: 24.099,50)
	42.522.152,23	8.000.000,00	20.035.061,36	70.557.213,59

Der Gesamtbetrag der Verbindlichkeiten, der durch eine Garantie der NIFCO, Inc. gesichert ist, beträgt T€ 26.000.

7. Ausschüttungsgesperrte Beträge

Für die Ausschüttung gesperrte Beträge i.S.d. § 268 Abs. 8 HGB bestehen in Höhe von T€ 4.232 aus der Aktivierung latenter Steuern für die Gesellschaft.

IV. ERLÄUTERUNGEN ZU EINZELNEN POSITIONEN DER GEWINN- UND VERLUSTRECHNUNG

Umsätze nach Marktsegmenten	€
Spritzguß- bzw. veredelte Kunststoffteile	96.044.318
Entwicklungsdienstleistung/Werkzeuggeschäft	26.448.780
Lohnveredelung	2.349.593
Sonstiger Umsatz	6.046.646
Umsätze vor Erlösschmälerungen	130.889.337
Umsätze nach Märkten	€
Europa	107.335.476
Nordamerika	19.337.777
Asien	4.124.879
Afrika	91.205
Umsätze vor Erlösschmälerungen	130.889.337

V. ERGÄNZENDE ANGABEN

Erläuterungen zur Kapitalflussrechnung

Die Kapitalflussrechnung wird für den Cashflow aus laufender Geschäftstätigkeit nach der indirekten Methode ermittelt. Die flüssigen Mittel entsprechen dem Bilanzposten "Kassenbestand, Guthaben bei Kreditinstituten". Von den flüssigen Mitteln entfallen T€ 1.467 auf das Tochterunternehmen.

Bei den Auszahlungen für Investitionen in immaterielle Vermögensgegenstände und Sachanlagen in Höhe von T€ 21.408 handelt es sich im Wesentlichen um Anzahlungen für das Werk in USA (T€ 17.161) sowie Investitionen in technische Anlagen und Maschinen sowie andere Anlagen und Betriebs- und Geschäftsausstattung in Weißenburg (T€ 2.796).

Während des Geschäftsjahres wurden Zinsen in Höhe von T€ 439 sowieErtragsteuern in Höhe von T€ 2.160 bezahlt.

Sonstige finanzielle Verpflichtungen

Der Nutzung eines Teils unserer Produktionsanlagen sowie von Grundstücken und Gebäuden der NIFCO KTW GmbH liegen Operating-Leasingvereinbarungen zugrunde. Diese tragen zur Verringerung der Kapitalbindung bei und belassen das Investitionsrisiko beim Leasinggeber. Die Leasingvereinbarungen haben eine Restlaufzeit zwischen 1 und 8 Jahren und führen im Jahr 2017 zu einem Leasingaufwand in Höhe von T€ 2.054.

Operating Leasing	€
Grundstücke und Gebäude unbeweglich	1.824.089
Grundstücke und Gebäude beweglich	14.772
Stapler + BGA	100.326
Kfz/Leasingfahrzeuge	114.832
	2.054.019

Wesentliche finanzielle Verpflichtungen, die nicht in den Rückstellungen, Verbindlichkeiten oder Haftungsverhältnissen enthalten sind, bestehen für folgende Verpflichtungen aus Miet- und Leasingverträgen:

	Gesamtbetrag T€
Mieten für Grundstück und Gebäude	8.371
Mieten, Leasing für Maschinen und Betriebsausstattung	143
Mieten, Leasing für Geschäftsausstattung	252
	8.766

Die Zahlungen verteilen sich auf die folgenden Jahre:

	Gesamtbetrag T€
2018	1.976
2019	1.356
2020	1.230
2021 und später	4.204
	8.766

Haftungsverhältnisse

Zum Bilanzstichtag bestehen keine Haftungsverhältnisse, auch nicht gegenüber verbundenen oder assoziierten Unternehmen, über die gemäß § 251 HGB zu berichten wäre.

Geschäftsführung und Vertretungsbefugnis

Der Geschäftsführung gehören an:

―	Masaya Nagaoka, Tokio, Japan
―	Roland Furtmayr, Weißenburg, Deutschland
―	Karsten Schmidt, Oberneuching, Deutschland
―	Sanshiro Ogasawara, Dublin, USA
―	Tsukasa Naganawa, Nürnberg, Deutschland (ab 27.03.2017)
―	Osamu Kishii, Weißenburg, Deutschland (bis 26.03.2017)
―	Mike Matthews, Darlington, UK (bis 26.03.2017)

Die Gesellschaft wird durch zwei o.g. Geschäftsführer oder durch einen Geschäftsführer gemeinsam mit einem Prokuristen vertreten.

Des Weiteren sind folgende Geschäftsführer bestellt, die einzelvertretungsberechtigt und von den Beschränkungen des § 181 BGB (Selbstkontrahierungsverbot) befreit sind:

―	Toshiyuki Yamamoto, Tokio, Japan

Zu Prokuristen sind ernannt:

―	Thomas Werzinger, Weißenburg, Deutschland
―	Stefan Holz, Markt Berolzheim, Deutschland
―	Franz Karl, Pleinfeld, Deutschland
―	Albert Burghart, Königsmoos, Deutschland

Die Prokuristen vertreten die Gesellschaft gemeinsam mit einem Geschäftsführer.

Anzahl der Arbeitnehmer

Der Konzern beschäftigte im Berichtsjahr durchschnittlich 423 gewerbliche Arbeitnehmer (i.Vj. 346) und 225 Angestellte (i.Vj. 85).

Bezüge der Organe der Gesellschaft

Die Gesamtbezüge der Geschäftsführung betrugen im Berichtsjahr T€ 653.

Abschlussprüferhonorar

	T€
Abschlussprüfungsleistungen	130

Konzernabschluss

NIFCO Inc., Tokio, Japan, ist das Konzernunternehmen, das den Konzernabschluss für den größten und zugleich kleinsten Kreis von Unternehmen aufstellt.

Der Konzernabschluss ist in den Geschäftsräumen der NIFCO Inc., Tokio, Japan, einzusehen.

Ergebnisverwendung

Der Gesellschafterversammlung wird vorgeschlagen, den Konzernverlust in Höhe von € -10.475.164,29 auf neue Rechnung vorzutragen.

Nachtragsbericht

Vorgänge von besonderer Bedeutung nach dem 31. Dezember 2017 haben sich nicht ereignet.

Weißenburg, 15. Juni 2018

Toshiyuki Yamamoto

Masaya Nagaoka

Roland Furtmayr

Karsten Schmidt

Sanshiro Ogasawara

Tsukasa Naganawa

Erläuterungen zur Konzernbilanz zum 31. Dezember 2017

NIFCO KTW GmbH

Aktive latente Steuern

Aktiva

Bilanzposition	Handelsbilanz €	31. Dezember 2016 Steuerbilanz €	Abweichung €	Handelsbilanz €	31. Dezember 2017 Steuerbilanz €	Abweichung €
Kundenbeziehungen	11.023.266,65	0,00	-11.023.266,65	6.463.245,41	0,00	-6.463.245,41
Geschäfts- oder Firmenwert	24.320.376,86	45.895.252,65	21.574.875,79	21.280.329,00	42.191.746,17	20.911.417,17
Anlagevermögen	843.154,01	769.300,58	-73.853,43	499.712,38	452.767,80	-46.944,58
Forderungen aus LuL in Fremdwährung	15.761.223,94	15.743.634,82	-17.589,12	374.998,87	374.998,87	0,00
	51.948.021,46	62.408.188,05	10.460.166,59	28.618.285,66	43.019.512,84	14.401.227,18
Passiva
Drohverlustrückstellung	0,00	0,00	0,00	0,00	0,00	0,00
Jubiläumsrückstellung	75.000,00	55.062,00	19.938,00	117.613,00	53.709,00	63.904,00
Urlaubsrückstellung	526.449,01	463.275,12	63.173,89	663.205,40	583.620,77	79.584,63
Überstundenrückstellung	344.048,36	302.762,56	41.285,80	385.667,07	339.387,02	46.280,05
Verbindlichkeiten aus LuL in Fremdwährung	5.450.329,71	5.462.275,99	-11.946,28	891.673,38	914.785,30	-23.111,92
	6.395.827,08	6.283.375,67	112.451,41	2.058.158,85	1.891.502,09	166.656,76
			10.572.618,00			14.567.883,94
					Steuersatz	Latente Steuer
Steuersatz NIFCO KTW GmbH				KSt	15,000%	2.185.182,59
				SolZ	0,825%	120.185,04
				GewSt	12,250%	1.784.565,78
						4.089.933,41

Aktiva

Bilanzposition	Handelsbilanz €	31. Dezember 2016 Steuerbilanz €	Abweichung €	Handelsbilanz €	31. Dezember 2017 Steuerbilanz €	Abweichung €
Technische Anlagen und Maschinen	14.401.473,93	14.598.033,66	196.559,73	22.162.108,62	22.393.858,17	231.749,55
geleistete Anzahlungen und Anlagen im Bau	0,00	0,00	0,00	11.718.595,16	11.725.243,58	6.648,42
Andere Anlagen, Betriebs- und Geschäftsausstattung	3.253.820,59	3.258.530,31	4.709,72	3.242.915,26	3.247.624,98	4.709,72
Roh-, Hilfs- und Betriebsstoffe	18.071.373,29	18.171.757,58	100.384,29	2.902.586,89	2.978.075,66	75.488,77
Fertige Erzeugnisse und Waren	0,00	0,00	0,00	18.867.928,25	18.968.312,54	100.384,29
	35.726.667,81	36.028.321,55	301.653,74	58.894.134,18	59.313.114,93	418.980,75
					Steuersatz	Latente Steuer
Steuersatz NIFCO KTW America Corporation					34,00%	142.453,45
Summe aktive latente Steuern						4.232.386,86

Entwicklung des Anlagevermögens

	Anschaffungs- und Herstellungskosten
	01. Jan. 2017 €	Zugänge €	Umbuchungen €
VERMÖGENSGEGENSTÄNDE
1. Software	218.844,63	74.213,01	0,00
2. Kundenstamm	19.913.662,65	0,00	0,00
3. Geschäfts- oder Firmenwert	30.570.817,42	0,00	0,00
	50.703.324,70	74.213,01	0,00
1. Bauten auf fremden Grundstücken	10.713.947,00	97.563,90	0,00
2. technische Anlagen und Maschinen	23.222.270,34	9.749.842,08	2.246.650,40
3. andere Anlagen, Betriebs- und Geschäftsausstattung	5.224.984,65	1.866.295,25	-1.037.100,61
4. geleistete Anzahlungen und Anlagen im Bau	3.724.057,68	9.620.538,21	-1.209.549,79
	42.885.259,67	21.334.239,44	0,00
	93.588.584,37	21.408.452,45	0,00

	Anschaffungs- und Herstellungskosten
	Abgänge €	Währungsumrechnungsdiffernez €	31. Dez. 2017 €
VERMÖGENSGEGENSTÄNDE
1. Software	0,00	0,00	293.057,64
2. Kundenstamm	0,00	0,00	19.913.662,65
3. Geschäfts- oder Firmenwert	0,00	0,00	30.570.817,42
	0,00	0,00	50.777.537,71
1. Bauten auf fremden Grundstücken	0,00	-1.247.180,04	9.564.330,86
2. technische Anlagen und Maschinen	827.309,94	-848.832,79	33.542.620,09
3. andere Anlagen, Betriebs- und Geschäftsausstattung	48.079,60	-199.826,50	5.806.273,19
4. geleistete Anzahlungen und Anlagen im Bau	0,00	-423.099,36	11.711.946,74
	875.389,54	-2.718.938,69	60.625.170,88
	875.389,54	-2.718.938,69	111.402.708,59

	Kumulierte Abschreibungen
	01. Jan. 2017 €	Zuführungen €	Umbuchungen €	Abgänge €
VERMÖGENSGEGENSTÄNDE
1. Software	146.891,63	39.643,01	0,00	0,00
2. Kundenstamm	8.890.396,00	4.560.021,24	0,00	0,00
3. Geschäfts- oder Firmenwert	6.250.442,42	3.040.047,00	0,00	0,00
	15.287.730,05	7.639.711,25	0,00	0,00
1. Bauten auf fremden Grundstücken	160.527,32	338.188,44	0,00	0,00
2. technische Anlagen und Maschinen	8.820.796,41	1.970.072,52	1.278.663,95	507.075,94
3. andere Anlagen, Betriebs- und Geschäftsausstattung	1.971.164,06	1.905.675,38	-1.278.663,95	14.636,09
4. geleistete Anzahlungen und Anlagen im Bau	0,00	0,00	0,00	0,00
	10.952.487,79	4.213.936,34	0,00	521.712,03
	26.240.217,84	11.853.647,59	0,00	521.712,03

	Kumulierte Abschreibungen
	Währungsumrechnungsdiffernez €	31. Dez. 2017 €
VERMÖGENSGEGENSTÄNDE
1. Software	0,00	186.534,64
2. Kundenstamm	0,00	13.450.417,24
3. Geschäfts- oder Firmenwert	0,00	9.290.489,42
	0,00	22.927.441,30
1. Bauten auf fremden Grundstücken	-31.723,23	466.992,53
2. technische Anlagen und Maschinen	-181.945,47	11.380.511,47
3. andere Anlagen, Betriebs- und Geschäftsausstattung	-15.471,75	2.568.067,65
4. geleistete Anzahlungen und Anlagen im Bau	0,00	0,00
	-229.140,45	14.415.571,65
	-229.140,45	37.343.012,95

	Buchwert
	31. Dez. 2017 €	31. Dez. 2016 €
VERMÖGENSGEGENSTÄNDE
1. Software	106.523,00	71.953,00
2. Kundenstamm	6.463.245,41	11.023.266,65
3. Geschäfts- oder Firmenwert	21.280.328,00	24.320.375,00
	27.850.096,41	35.415.594,65
1. Bauten auf fremden Grundstücken	9.097.338,33	10.553.419,68
2. technische Anlagen und Maschinen	22.162.108,62	14.401.473,93
3. andere Anlagen, Betriebs- und Geschäftsausstattung	3.238.205,54	3.253.820,59
4. geleistete Anzahlungen und Anlagen im Bau	11.711.946,74	3.724.057,68
	46.209.599,23	31.932.771,88
	74.059.695,64	67.348.366,53

Bestätigungsvermerk des Abschlussprüfers

Wir haben den von der NIFCO KTW GmbH, Weißenburg in Bayern, aufgestellten Konzernabschluss - bestehend aus Konzernbilanz, Konzern-Gewinn- und Verlustrechnung, Konzernkapitalflussrechnung, Konzerneigenkapitalspiegel und Konzernanhang - sowie den Konzernlagebericht für das Geschäftsjahr vom 1. Januar bis 31. Dezember 2017 geprüft. Die Aufstellung von Konzernabschluss und Konzernlagebericht nach den deutschen handelsrechtlichen Vorschriften liegt in der Verantwortung der gesetzlichen Vertreter der Gesellschaft. Unsere Aufgabe ist es, auf der Grundlage der von uns durchgeführten Prüfung eine Beurteilung über den Konzernabschluss und den Konzernlagebericht abzugeben.

Wir haben unsere Konzernabschlussprüfung nach § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung vorgenommen. Danach ist die Prüfung so zu planen und durchzuführen, dass Unrichtigkeiten und Verstöße, die sich auf die Darstellung des durch den Konzernabschluss unter Beachtung der Grundsätze ordnungsmäßiger Buchführung und durch den Konzernlagebericht vermittelten Bildes der Vermögens-, Finanz- und Ertragslage wesentlich auswirken, mit hinreichender Sicherheit erkannt werden. Bei der Festlegung der Prüfungshandlungen werden die Kenntnisse über die Geschäftstätigkeit und über das wirtschaftliche und rechtliche Umfeld des Konzerns sowie die Erwartungen über mögliche Fehler berücksichtigt. Im Rahmen der Prüfung werden die Wirksamkeit des rechnungslegungsbezogenen internen Kontrollsystems sowie Nachweise für die Angaben im Konzernabschluss und Konzernlagebericht überwiegend auf der Basis von Stichproben beurteilt. Die Prüfung umfasst die Beurteilung der Jahresabschlüsse der in den Konzernabschluss einbezogenen Unternehmen, der Abgrenzung des Konsolidierungskreises, der angewandten Bilanzierungs- und Konsolidierungsgrundsätze und der wesentlichen Einschätzungen der gesetzlichen Vertreter sowie die Würdigung der Gesamtdarstellung des Konzernabschlusses und des Konzernlageberichts. Wir sind der Auffassung, dass unsere Prüfung eine hinreichend sichere Grundlage für unsere Beurteilung bildet.

Unsere Prüfung hat zu keinen Einwendungen geführt.

Nach unserer Beurteilung aufgrund der bei der Prüfung gewonnenen Erkenntnisse entspricht der Konzernabschluss den gesetzlichen Vorschriften und vermittelt unter Beachtung der Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage des Konzerns. Der Konzernlagebericht steht in Einklang mit dem Konzernabschluss, entspricht den gesetzlichen Vorschriften, vermittelt insgesamt ein zutreffendes Bild von der Lage des Konzerns und stellt die Chancen und Risiken der zukünftigen Entwicklung zutreffend dar.

Nürnberg, den 30. November 2018

KPMG AG
Wirtschaftsprüfungsgesellschaft

Herr, Wirtschaftsprüfer

Eberle, Wirtschaftsprüfer

2d:T1812c,

NIFCO KTW GmbH

Weißenburg in Bayern

Jahresabschluss zum 31. Dezember 2016 und Lagebericht

Lagebericht für das Geschäftsjahr vom 01. Januar 2016 bis 31. Dezember 2016

I. Grundlagen des Unternehmens

1. Geschäftsmodell der Gesellschaft

NIFCO KTW GmbH, Weißenburg (im Folgenden kurz "Gesellschaft" genannt), ist vorrangig im Zulieferbereich der Automobilindustrie tätig. Das Hauptumsatzvolumen ist die Spritzgussproduktion von Kunststoffartikeln bzw. Baugruppen sowie die Industrielackierung von diesen Teilen für die Automobilindustrie sowie die Entwicklung von Kunststoffspritzgießwerkzeugen und Versuchsformen.

Ferner werden im kleineren Rahmen auch Teile für andere Industriebereiche produziert.

Unter dem Dach der NIFCO Inc. ist mittel- bis langfristig durch Bündelung der Technologien und des Know-Hows der einzelnen Standorte geplant, den Kunden komplette Komponenten anbieten zu können.

2. Forschung und Entwicklung

II. Wirtschaftsbericht

1. Gesamtwirtschaftliche und branchenbezogene Rahmenbedingungen

Die gesamtwirtschaftlichen Rahmenbedingungen im Automobilsektor bewegen sich nach wie vor auf einem zufriedenstellenden Niveau. Die Weltautomobilproduktion verzeichnete im Jahr 2016 ein Wachstum von 4,5% (Quelle: Organisation Internationale des Constructeurs d'Automobiles (OICA) "2016 production statistics").

Die Zulassung von Neufahrzeugen im Inland ist um 5 % gestiegen, während der Export im Vergleich zum Vorjahr unverändert blieb (Quelle: Verband der deutschen Automobilindustrie(VDA) aus der Pressemeldung "Deutscher PKW-Markt mit starkem Jahr 2016").

2. Geschäftsverlauf

2.1. Allgemeines

Die Gesellschaft kann auf ein erfolgreiches Geschäftsjahr 2016 zurückblicken.

Die erzielten Umsätze der Gesellschaft übertrafen die Planungen bzw. die Prognose aus dem Vorjahr. Hauptursache war die nicht geplante Übernahme eines Großprojektes von einem Wettbewerber.

Auf Grund des großen Wachstums war jedoch auch ein Anstieg der Reklamationen und Ausschussquoten zu verzeichnen.

Der EBIT ist dennoch im Vergleich zum Vorjahr gestiegen. Hauptursachen waren eine stark erhöhte Betriebsleistung sowie verminderte Abschreibungen.

Es wurde im Jahr 2016 weiterhin in den Standort Weißenburg investiert. So wurden mehrere Spritzgießmaschinen beschafft und die bestehenden Lackieranlagen weiterhin verbessert.

Weiterhin sind die ersten Aufträge mit unseren neuen Kunden Daimler und Audi erfolgreich in Serie gegangen.

Die Gesellschaft wurde auch im Jahr 2016 erfolgreich nach ISO TS 16949, ISO 14001 und ISO 50001 zertifiziert. Weiterhin wurde die Firma in Zusammenhang mit spezifischen Produktgruppen bezüglich CCC zertifiziert.

Die Tochterfirma "Nifco KTW America Corporation" (90 % der Anteile liegen bei der Gesellschaft, 10 % bei "Nifco America Corporation") wurde erfolgreich aufgebaut und die Maschinen innerhalb des Zeitplanes installiert. Die Produktion der ersten Vorserienteile erfolgte bereits Ende 2016. Die entsprechenden langfristigen Aufträge von BMW und Daimler sind bereits im Haus.

III. Darstellung der Lage der Gesellschaft

a) Ertragslage

Die Ertragslage stellt sich wie folgt dar:

	2016		2015		Veränderung
	T€	v.H.	T€	v.H.	T€	v.H.
Umsatzerlöse	91.213	90,1%	64.667	96,9%	26.546	41,1%
Bestandsveränderung	10.002	9,9%	2.067	3,1%	7.935	> 100%
Betriebsleistung	101.215	100,0%	66.734	100,0%	34.481	51,7%
Materialaufwand	-61.892	-61,1%	-35.367	-53,0%	-26.525	75,0%
Personalaufwand	-17.213	-17,0%	-13.457	-20,2%	-3.756	27,9%
Abschreibungen	-10.253	-10,1%	-12.897	-19,3%	2.644	-20,5%
Sonstige betriebliche Aufwendungen	-12.472	-12,3%	-7.661	-11,5%	-4.811	62,8%
Betriebsaufwand	-101.830	> 100%	-69.382	> 100%	-32.448	46,8%
Sonstige betriebliche Erträge	411	0,4%	378	0,6%	33	8,7%
Betriebsergebnis	-204	0,4%	-2.270	-3,4%	2.066	-91,0%
Zinsen und ähnliche Aufwendungen	-237	-0,2%	-290	-0,4%	53	-18,3%
Finanzergebnis	-237	-0,2%	-290	-0,4%	53	-18,3%
Ergebnis vor Ertragsteuern	-441	-0,4%	-2.560	-3,8%	2.119	-82,8%
Erträge aus Ertragsteuern	83	0,1%	712	1,1%	-629	-88,3%
Jahresfehlbetrag	-358	-0,4%	-1.848	-2,8%	1.490	-80,6%

Das negative Jahresergebnis resultiert zum großen Teil aus Abschreibungen im Rahmen der zum 31. Dezember 2014 erfolgten Anwachsung aktivierten immateriellen Vermögensgegenständen einschließlich eines Geschäfts- und Firmenwertes i.H.v. T€ 8.405 (Vj. T€ 11.527). Die Ertragsteuern beinhalten Erträge i.H.v. T€ 1.290 (Vj. T€ 2.243) für die Zuführung zu aktiven latenten Steuern, Aufwendungen i.H.v. T€ 660 (Vj. T€ 850) für laufende Körperschaftsteuer inkl. Solidaritätszuschlag, sowie Aufwendungen i.H.v. T€ 547 (Vj. T€ 681) für Gewerbesteuer des laufenden Jahres bzw. Vorjahres.

Der Jahresfehlbetrag beträgt T€ 358 (Vj. T€ 1.848) und wird auf neue Rechnung vorgetragen.

Die Umsatzerlöse sind im Vergleich zum Vorjahr um T€ 26.546 gestiegen und beliefen sich in 2016 auf T€ 91.213. Das Betriebsergebnis (EBIT) beläuft sich in 2016 auf T€ -204 (Vj. T€ ‑2.270).

Aufgrund der Änderung der Umsatzerlösdefinition nach BilRUG stimmen die Umsatzerlöse sowie die sonstigen betrieblichen Erträge für das Geschäftsjahr vom 1. Januar 2015 bis 31. Dezember 2015 nicht mit den Vorjahreswerten in der Gewinn- und Verlustrechnung überein. Nach der alten Umsatzerlösdefinition vor BilRUG würden sich für das Geschäftsjahr vom 1. Januar 2015 bis 31. Dezember 2015 Umsatzerlöse in Höhe von T€ 64.357 und sonstige betriebliche Erträge in Höhe von T€ 688 ergeben.

Die Aufgliederung der Umsätze nach Regionen / Segmenten ist im Anhang ersichtlich. Die Steigerung der Umsatzerlöse ist auf die kurzfristige Akquirierung von Neuprojekten/Übernahmeprojekten zurückzuführen. Das Umsatzvolumen des Übernahmeprojektes BMW F48 verteilt sich zu 80% auf Deutschland und 20% auf China.

b) Vermögens- und Finanzlage

Die Vermögens- und Kapitalstruktur der Gesellschaft zeigen folgendes Bild:

	2016		2015		Veränderung
	T€	v.H.	T€	v.H.	T€	v.H.
Immaterielle Vermögensgegenstände	35.416	31,4%	43.786	48,1%	-8.370	-19,1%
Sachanlagen	8.637	7,7%	6.270	6,9%	2.367	37,8%
Finanzanlagen	16.095	14,3%	16.095	17,7%	0	0,0%
Langfristig gebundenes Vermögen	60.148	53,4%	66.151	72,7%	-6.003	-9,1%
Vorräte	23.145	20,5%	10.810	11,9%	12.335	> 100%
Forderungen und sonstige Vermögensgegenstände	20.342	18,0%	8.699	9,6%	11.643	> 100%
Bank, Kasse	5.971	5,3%	3.548	3,9%	2.423	68,3%
Rechnungsabgrenzungsposten	134	0,1%	145	0,2%	-11	-7,6%
Kurzfristig gebundenes Vermögen	49.592	44,0%	23.202	25,5%	26.390	> 100%
Aktive latente Steuern	2.968	2,6%	1.678	1,8%	1.290	76,9%
Gesamtvermögen	112.708	100,0%	91.031	100,0%	21.677	23,8%
Gezeichnetes Kapital	25	0,0%	25	0,0%	0	0,0%
Kapitalrücklage	60.050	53,3%	60.050	66,0%	0	0,0%
Gewinnvortrag	108	0,1%	1.956	2,1%	-1.848	-94,5%
Jahresfehlbetrag	-358	-0,3%	-1.848	-2,0%	1.490	-80,6%
Buchmäßiges Eigenkapital	59.825	53,1%	60.183	66,1%	-358	-0,6%
Kurzfristiges Fremdkapital	31.415	27,9%	10.507	11,5%	20.908	199,0%
Kurzfristige Verbindlichkeiten im Verbundbereich	17.968	15,9%	18.341	20,1%	-373	-2,0%
Langfristiges Fremdkapital	3.500	3,1%	2.000	2,2%	1.500	> 100%
Fremdkapital	52.883	46,9%	30.848	33,9%	22.035	71,4%
Gesamtpassiva	112.708	100,0%	91.031	100,0%	21.677	23,8%

Der nicht ausgeschöpfte Kreditrahmen betrug zum 31.12.2016 T€ 1.000.

• fortgeschriebener Geschäfts- und Firmenwert T€ 24.321 (Vj. T€ 27.361)

• fortgeschriebener Kundenstamm T€ 11.023 (Vj. T€ 16.388)

Die Finanzlage ist als stabil zu bezeichnen. Verbindlichkeiten werden innerhalb der Zahlungsfristen beglichen; Forderungen werden innerhalb der Zahlungsziele vereinnahmt.

Die Ertrag-, Finanz- und Vermögenslage stellt sich als solide dar. Die Eigenkapitalquote beträgt 53,1 % (Vj. 66,1 %). Das Fremdkapital von T€ 52.883 (46,9 %) entfällt mit T€ 17.968 (15,9 %) auf den Verbundbereich, so dass eine Verschuldung gegenüber Dritten von T€ 34.915 (31,0 %) verbleibt.

IV. Finanzielle und nichtfinanzielle Leistungsindikatoren

Wir ziehen für unsere interne Unternehmenssteuerung v. a. die Kennzahlen Umsatz, Cashflow sowie EBIT heran.

Der Umsatz stieg von T€ 64.667 in 2015 auf T€ 91.213 in 2016, hauptsächlich durch ein Übernahmeprojekt von einem Wettbewerber im Jahr 2016.

Der Cashflow ermittelt aus dem Jahresfehlbetrag korrigiert um die Abschreibung übertraf mit T€ 9.895 (Vorjahr T€ 11.049) bei weitem die Planungen.

Der operative EBIT (Betriebsergebnis + Abschreibung des Geschäfts- und Firmenwertes + Abschreibung Kundenstamm) ist von 2015 auf 2016 um 11,41% gesunken.

Nicht finanzielle Leistungsindikatoren sind von untergeordneter Bedeutung und deshalb nicht aufgeführt.

V. Prognosebericht

Durch den Einstieg bei Audi und Daimler als Direktlieferant liegen auch für die nächsten Jahre noch weitere Wachstumspotentiale vor.

Für das Werk in den USA wird bereits 2017 die erste Erweiterung der Produktions- und Lageflächen stattfinden. Hintergrund sind gestiegene Auftragsvolumina von unseren Kunden.

Am Standort Weißenburg sind aktuell nur kleinere Investitionen im Bereich Spritzguss und Logistik geplant.

Für das Jahr 2017 wird mit einem im Verhältnis zu 2016 leicht geringerem Umsatz von T€ 90.722 und einer Erhöhung des operativen EBIT's um 9 % gerechnet.

VI. Chancen- und Risikobericht

a) Risikobericht

Wir sind zertifiziert nach ISO/TS 16949:2002.

Personalrisiken begrenzen wir durch intensive Weiterbildungs- und Nachwuchskräfte-programme. Weiterhin investieren wir viel in ein attraktives Arbeitsumfeld und in eine gute Außendarstellung.

Umsatzrisiken:

Unsere Produkte laufen über einen Zeitraum von etwa 5 - 6 Jahren. Risiken der künftigen geschäftlichen Entwicklung bestehen darin, dass unsere Kunden die vorkalkulierten Abnahmemengen für die Produktlaufzeiten nicht garantieren können. Unser Umsatz verteilt sich auf wenige Kunden. Hier konnte mit der Gewinnung von Audi und Daimler jedoch bereits der Grundstein für eine größere Streuung des Kundenkreises erzielt werden, was sich in den nächsten Jahren verstärkt auch auf eine Streuung des Umsatzes auswirken wird. Als Direktlieferant sehen wir hier jedoch aktuell kein Risiko.

Ein Risiko bezüglich der aktuellen politischen Situation in den USA sehen wir derzeit nicht. Die Preise für die Zukaufteile, welche von Mexiko in unser Werk Toccoa geliefert werden, sind von BMW fixiert und in unseren Kalkulationen nur integriert und werden somit immer zum Endkunden durchgereicht.

b) Chancenbericht

Chancen bestehen darin, sich durch Spezialisierung (z.B. Herstellung komplexer Baugruppen, exklusive Beschichtungen der Kunststoffteile vollständig durch die Gesellschaft ohne die Einbeziehung von Dritten) Marktnischen zu erschließen, um angemessene Preise trotz des enormen Preisdrucks der Automobilindustrie erzielen zu können.

Chancen und weiteres Wachstumspotential sehen wir in den neu geknüpften Kundenverbindungen zu Audi und Daimler sowie in der geplanten Internationalisierung.

Gesamtaussage

Mit dem Gesellschafter Nifco Inc. ergeben sich für die Zukunft weitere Vorteile bei neuen Produkten, Technologien und Kunden, die in den nächsten Jahren genutzt werden können.

VII. Risikoberichterstattung über die Verwendung von Finanzinstrumenten

Zu den im Unternehmen bestehenden Finanzinstrumenten zählen im Wesentlichen Forderungen, Verbindlichkeiten und Guthaben bei Kreditinstituten.

Konkrete Risiken mit Auswirkungen auf die wirtschaftliche Lage oder die voraussichtliche Entwicklung sind nicht erkennbar.

Sicherungsgeschäfte wurden nicht getätigt.

VIII. Bericht über Zweigniederlassungen

Es besteht eine Zweigniederlassung in München (Entwicklungsbüro).

Weißenburg, den 30. März 2017

Toshiyuki Yamamoto

Sanshiro Ogasawara

Masaya Nagaoka

Karsten Schmidt

Roland Furtmayr

Tsukasa Naganawa

Bilanz zum 31. Dezember 2016

Aktiva

	31. Dez. 2016 €	31. Dez. 2015 €
A. Anlagevermögen
I. Immaterielle Vermögensgegenstände
1. Software	71.953,00	36.869,00
2. Kundenstamm	11.023.266,65	16.388.067,89
3. Geschäfts- oder Firmenwert	24.320.375,00	27.360.422,00
	35.415.594,65	43.785.358,89
II. Sachanlagen
1. Bauten einschließlich der Bauten auf fremden Grundstücken	274.948,00	187.491,00
2. technische Anlagen und Maschinen	6.513.788,33	4.355.453,67
3. andere Anlagen, Betriebs- und Geschäftsausstattung	1.649.682,00	1.143.053,34
4. geleistete Anzahlungen und Anlagen im Bau	198.641,69	584.500,00
	8.637.060,02	6.270.498,01
III. Finanzanlagen
Anteile an verbundenen Unternehmen	16.095.252,78	16.095.252,78
	60.147.907,45	66.151.109,68
B. Umlaufvermögen
I. Vorräte
1. Roh-, Hilfs- und Betriebsstoffe	2.223.541,87	1.346.580,00
2. unfertige Erzeugnisse, unfertige Leistungen	2.184.924,49	1.782.257,00
3. fertige Erzeugnisse	16.736.999,97	7.137.607,00
4. geleistete Anzahlungen	1.999.929,93	543.283,74
	23.145.396,26	10.809.727,74
II. Forderungen und sonstige Vermögensgegenstände
1. Forderungen aus Lieferungen und Leistungen	15.761.223,94	7.724.478,61
2. Forderungen gegen verbundene Unternehmen	3.077.105,39	300.000,00
3. sonstige Vermögensgegenstände	1.502.572,54	674.326,44
	20.340.901,87	8.698.805,05
III. Kassenbestand, Guthaben bei Kreditinstituten	5.970.845,46	3.547.719,85
	49.457.143,59	23.056.252,64
C. Rechnungsabgrenzungsposten	134.194,69	145.428,60
D. Aktive latente Steuern	2.968.262,51	1.678.569,52
	112.707.508,24	91.031.360,44
Passiva
	31. Dez. 2016 €	31. Dez. 2015 €
A. Eigenkapital
I. Gezeichnetes Kapital	25.000,00	25.000,00
II. Kapitalrücklage	60.049.516,90	60.049.516,90
III. Gewinnvortrag	108.078,86	1.956.354,90
IV. Jahresfehlbetrag	-357.959,45	-1.848.276,04
	59.824.636,31	60.182.595,76
B. Rückstellungen
1. Steuerrückstellungen	645.626,53	290.433,14
2. sonstige Rückstellungen	4.100.265,06	2.370.447,60
	4.745.891,59	2.660.880,74
C. Verbindlichkeiten
1. Verbindlichkeiten gegenüber Kreditinstituten	22.500.000,00	6.000.000,00
2. erhaltene Anzahlungen	549.493,30	202.600,00
3. Verbindlichkeiten aus Lieferungen und Leistungen	5.450.329,71	2.818.969,95
4. Verbindlichkeiten gegenüber Gesellschafter	17.000.000,00	18.340.377,78
5. Verbindlichkeiten gegenüber verbundenen Unternehmen	967.850,99	823,50
6. sonstige Verbindlichkeiten	1.669.306,34	825.112,71
	48.136.980,34	28.187.883,94
	112.707.508,24	91.031.360,44

Gewinn- und Verlustrechnung für die Zeit vom 1. Januar 2016 bis 31. Dezember 2016

	2016 €	2015 €
1. Umsatzerlöse	91.212.956,69	64.357.433,97
2. Erhöhung des Bestands an fertigen und unfertigen Erzeugnissen	10.002.060,46	2.067.169,96
3. sonstige betriebliche Erträge	410.986,87	687.683,42
- davon Erträge aus Währungsumrechnung: € 28.912,74 (Vorjahr: € 1.613,09)
4. Materialaufwand
a) Aufwendungen für Roh-, Hilfs- und Betriebsstoffe und für bezogene Waren	-43.678.028,28	-25.773.560,78
b) Aufwendungen für bezogene Leistungen	-18.214.160,02	-9.594.150,54
5. Personalaufwand
a) Löhne und Gehälter	-14.384.288,24	-11.246.041,36
b) soziale Abgaben	-2.828.380,71	-2.211.253,47
6. Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen	-10.252.658,77	-12.896.929,68
7. sonstige betriebliche Aufwendungen	-12.468.603,47	-7.661.082,00
- davon Aufwendungen aus Währungsumrechnung: € 16.648,90 (Vorjahr: € 942,61)
8. Sonstige Zinsen und ähnliche Erträge	28,39	268,78
9. Zinsen und ähnliche Aufwendungen	-237.305,57	-290.202,16
10. Steuern vom Einkommen und vom Ertrag	83.444,20	712.387,82
- davon Erträge aus der Veränderung latenter Steuern: € 1.289.692,99 (Vorjahr: € 2.243.213,77)
11. Ergebnis nach Steuern	-353.948,45	-1.848.276,04
12. Sonstige Steuern	-4.011,00	0,00
13. Jahresfehlbetrag	-357.959,45	-1.848.276,04

Anhang für das Geschäftsjahr vom 1. Januar 2016 bis 31. Dezember 2016

I. ALLGEMEINE ERLÄUTERUNGEN ZUM JAHRESABSCHLUSS

Die NIFCO KTW GmbH, Weißenburg (im Folgenden kurz "Gesellschaft" genannt), hat ihren Sitz in Weißenburg und ist dort beim Amtsgericht im Handelsregister, Abteilung B, unter Nummer 5941 seit dem 24. November 2014 eingetragen.

Der Jahresabschluss der NIFCO KTW GmbH, Weißenburg, für das Geschäftsjahr zum 31. Dezember 2016 wurde nach den Vorschriften des Dritten Buches des Handelsgesetzbuches sowie des GmbH-Gesetzes aufgestellt.

Hinsichtlich der Gliederung der Gewinn- und Verlustrechnung hat die Gesellschaft das Gesamtkostenverfahren gemäß § 275 Abs. 2 HGB gewählt.

Die Gesellschaft ist eine große Kapitalgesellschaft im Sinne des § 267 Abs. 3 HGB.

Aufgrund der Änderung der Umsatzerlösdefinition nach BilRUG sind die Umsatzerlöse sowie die sonstigen betrieblichen Erlöse nicht mit den Vorjahreswerten vergleichbar. Nach der neuen Umsatzerlösdefinition gemäß BilRUG würden sich für das Geschäftsjahr vom 1. Januar 2015 bis 31. Dezember 2015 Umsatzerlöse in Höhe von € 64.667.519,32 und sonstige betriebliche Erträge in Höhe von € 377.598,07 ergeben.

II. BILANZIERUNGS- UND BEWERTUNGSGRUNDSÄTZE

1. Anlagevermögen

Erworbene immaterielle Vermögensgegenstände werden zu Anschaffungskosten vermindert um planmäßige Abschreibungen angesetzt.

Das Sachanlagevermögen ist zu Anschaffungskosten vermindert um planmäßige Abschreibungen angesetzt.

Bei den Zugängen von Gegenständen des Sachanlagevermögens wurden die Abschreibungen pro rata temporis vorgenommen.

Abschreibungen von Gegenständen des Anlagevermögens erfolgen wie folgt:

Anlageposition	Abschreibungsmethode	Nutzungsdauer
Geschäfts- und Firmenwert	linear	10 Jahre
Kundenstamm	linear	8 Jahre
Übrige immaterielle	linear	3 - 5 Jahre
Vermögensgegenstände
Bauten einschl. der Bauten auf fremden Grundstücken	linear	8 - 20 Jahre
Technische Anlagen und Maschinen	linear	1 - 19 Jahre
Andere Anlagen, Betriebs- und Geschäftsausstattung	linear	1 - 18 Jahre
Sammelposten	linear	5 Jahre

Die Finanzanlagen werden zu Anschaffungskosten bzw. dem niedrigeren beizulegenden Wert angesetzt.

2. Vorräte

Roh-, Hilfs- und Betriebsstoffe werden zu Anschaffungskosten zuzüglich Anschaffungsnebenkosten oder mit dem niedrigeren beizulegenden Wert angesetzt.

Geleistete Anzahlungen werden zu Anschaffungskosten angesetzt.

3. Forderungen und sonstige Vermögensgegenstände

Die Forderungen und sonstigen Vermögensgegenstände werden mit dem Nennbetrag oder mit dem am Bilanzstichtag niedrigeren beizulegenden Wert angesetzt. Sonstige Vermögensgegenstände i.H.v. € 321.530,73 haben eine Restlaufzeit von über einem Jahr. Die Übrigen haben eine Restlaufzeit von unter einem Jahr.

Dem allgemeinen Kreditrisiko ist durch eine pauschale Wertberichtigung zu Forderungen in Höhe von 1 % auf die nicht einzelwertberichtigten Forderungen ausreichend Rechnung getragen.

Flüssige Mittel werden zum Nennwert bewertet.

4. Rückstellungen

Sonstige Rückstellungen werden in Höhe des nach vernünftiger kaufmännischer Beurteilung notwendigen Erfüllungsbetrags angesetzt.

5. Verbindlichkeiten

Verbindlichkeiten werden mit dem Erfüllungsbetrag angesetzt.

6. Verbundene Unternehmen

Als verbundene Unternehmen werden alle Gesellschaften angesehen, auf welche die NIFCO Inc., Tokio, Japan, unmittel- oder mittelbar einen beherrschenden Einfluss ausüben kann.

7. Fremdwährungsumrechnung

Der Jahresabschluss enthält auf fremde Währung lautende Sachverhalte, die in Euro umgerechnet wurden.

Forderungen und Verbindlichkeiten in Fremdwährung werden mit dem Kurs am Tag des Geschäftsvorfalls bewertet.

Zum Bilanzstichtag werden Forderungen und Verbindlichkeiten in fremder Währung mit einer Restlaufzeit von weniger als einem Jahr mit dem Devisenkassamittelkurs am Bilanzstichtag bewertet.

8. Latente Steuern

III. ERLÄUTERUNGEN ZU EINZELNEN BILANZPOSITIONEN

1. Immaterielle Vermögensgegenstände

Der Geschäfts- und Firmenwert und der Kundenstamm resultieren aus der Anwachsung der KTW KG (KTW Kunststofftechnik Weißenburg GmbH & Co.KG) sowie der JK KG (JK Industrielackierungen GmbH & Co.KG) mit Wirkung zum 31. Dezember 2014.

Der Kundenstamm wird in der Höhe abgeschrieben, wie das Verhältnis der budgetierten Umsatzerlöse pro Jahr zu den gesamten budgetierten Umsatzerlösen steht.

2. Anlagevermögen

Zur Entwicklung des Anlagevermögens im Geschäftsjahr 2016 wird auf den separat dargestellten Anlagenspiegel verwiesen (siehe Anlage 1 zum Anhang).

3. Latente Steuern

Die aktiven latenten Steuern ergeben sich unter Anwendung eines Steuersatzes von 28,075 %.

Zur Entwicklung der latenten Steuern wird auf die separat dargestellte Übersicht verwiesen (siehe Anlage 2 zum Anhang).

4. Sonstige Rückstellungen

Die ausgewiesenen sonstigen Rückstellungen in Höhe von T€ 4.100 enthalten Garantierückstellungen (T€ 781), personalbezogene Rückstellungen (T€ 1.479), Rückstellungen für Projektnachlaufkosten (T€ 312), Rückstellungen für Jahresabschlusskosten (T€ 98), Rückstellungen für Rechts- und Beratungskosten (T€ 31) Prozessrückstellungen ( T€ 950), Rückstellungen für ausstehende Rechnungen (T€ 347) und Verschiedene (T€ 102).

5. Verbindlichkeiten gegenüber Gesellschafter

Die Verbindlichkeiten gegenüber dem Gesellschafter resultieren ausschließlich aus einem der Gesellschaft gewährten Darlehen sowie den darauf entfallenden Zinsen.

6. Verbindlichkeiten

Die in der Bilanz ausgewiesenen Verbindlichkeiten haben folgende Laufzeiten:

Aufgliederung der Verbindlichkeiten

(Verbindlichkeitenspiegel)

	bis 1 Jahr €	1 bis 5 Jahre €	über 5 Jahre €	Gesamtbetrag €
1. Verbindlichkeiten gegenüber Kreditinstituten	19.000.000,00	3.500.000,00		22.500.000,00
	(Vorjahr: 4.000.000,00)	(Vorjahr: 2.000.000,00)		(Vorjahr: 6.000.000,00)
2. erhaltene Anzahlungen	549.493,30			549.493,30
	(Vorjahr: 202.600,00)			(Vorjahr: 202.600,00)
3. Verbindlichkeiten aus Lieferungen und Leistungen	5.450.329,71			5.450.329,71
	(Vorjahr: 2.818.969,95)			(Vorjahr: 2.818.969,95)
4. Verbindlichkeiten gegenüber verbundenen Unternehmen	967.850,99			967.850,99
	(Vorjahr: 823,50)			(Vorjahr: 823,50)
5. Verbindlickeiten gegenüber Gesellschaftern	17.000.000,00			17.000.000,00
	(Vorjahr: 18.340.377,78)			(Vorjahr: 18.340.377,78)
6. Sonstige Verbindlichkeiten	1.669.306,34			1.669.306,34
	(Vorjahr: 825.112,71)			(Vorjahr: 825.112,71)
- davon aus Steuern:	1.028.098,14			1.028.098,14
	(Vorjahr: 281.829,53)			(Vorjahr: 281.829,53)
- davon im Rahmen der soz. Sicherheit	24.099,50			24.099,50
	(Vorjahr: 20.997,71)			(Vorjahr: 20.997,71)
	44.636.980,34	3.500.000,00	0,00	48.136.980,34

Der Gesamtbetrag der Verbindlichkeiten, der durch eine Garantie der NIFCO Inc. gesichert ist, beträgt T€ 22.500.

7. Ausschüttungsgesperrte Beträge

Für die Ausschüttung gesperrte Beträge i. S. d. § 268 Abs. 8 HGB bestehen in Höhe von T€ 2.968 aus der Aktivierung latenter Steuern.

IV. ERLÄUTERUNGEN ZU EINZELNEN POSITIONEN DER GEWINN- UND VERLUSTRECHNUNG

Umsätze nach Marktsegmenten	€
Spritzguß- bzw. veredelte Kunststoffteile	75.600.466
Entwicklungsdienstleistung/Werkzeuggeschäft	8.906.227
Lohnveredelung	3.223.700
Sonstiger Umsatz	4.243.233
Umsätze vor Erlösschmälerungen	91.973.626
Umsätze nach Märkten	€
Europa	84.676.268
USA	3.930.902
Asien	3.366.456
Umsätze vor Erlösschmälerungen	91.973.626

V. SONSTIGE ANGABEN

1. Außerbilanzielle Geschäfte/Sonstige finanzielle Verpflichtungen

Der Nutzung eines Teils unserer Produktionsanlagen sowie von Grundstücken und Gebäuden liegen Operating-Leasingvereinbarungen zugrunde. Diese tragen zur Verringerung der Kapitalbindung bei und belassen das Investitionsrisiko beim Leasinggeber. Die Leasingvereinbarungen haben eine Restlaufzeit zwischen 1 und 8 Jahren und führen zu einem jährlichen Leasingaufwand in Höhe von T€ 2.017.

Operating Leasing	€
Grundstücke und Gebäude unbeweglich	1.618.567
Grundstücke und Gebäude beweglich	23.585
Stapler + BGA	255.401
Kfz/Leasingfahrzeuge	119.561
	2.017.114

Es bestehen außerdem Sale-and-lease-back-Verträge. Diese haben eine Restlaufzeit von unter 1 Jahr.

Der Gesamtaufwand hierfür beträgt in 2016 T€ 56.

	Gesamtbetrag T€
Mieten für Grundstück und Gebäude	8.145
Mieten, Leasing für Maschinen und Betriebsausstattung	381
Mieten, Leasing für Geschäftsausstattung	198
	8.724

Die Zahlungen verteilen sich auf die folgenden Jahre:

	Gesamtbetrag T€
2017	1.987
2018	1.291
2019	1.220
2020 und später	4.226
	8.724

2. Haftungsverhältnisse

Zum Bilanzstichtag bestehen keine Haftungsverhältnisse, auch nicht gegenüber verbundenen oder assoziierten Unternehmen, über die gemäß § 251 HGB zu berichten wäre.

3. Geschäftsführung und Vertretungsbefugnis

Der Geschäftsführung gehören an:

―	Masaya Nagaoka, Tokio, Japan
―	Roland Furtmayr, Weißenburg
―	Karsten Schmidt, Weißenburg
―	Sanshiro Ogasawara, Dublin, USA
―	Tsukasa Naganawa, Tokio, Japan (bestellt ab 27.03.2017)
―	Osamu Kishii, Weißenburg (bis 26.03.2017)
―	Mike Matthews, Darlington, UK (bis 26.03.2017)

Die Gesellschaft wird durch zwei o. g. Geschäftsführer oder durch einen Geschäftsführer gemeinsam mit einem Prokuristen vertreten.

Des Weiteren sind folgende Geschäftsführer bestellt, die einzelvertretungsberechtigt und von den Beschränkungen des § 181 BGB (Selbstkontrahierungsverbot) befreit sind:

―	Toshiaki Ogasawara, Shatin, Hongkong (bis 12.07.2016)
―	Toshiyuki Yamamoto, Tokio, Japan

Zu Prokuristen sind ernannt:

―	Thomas Werzinger, Weißenburg, Deutschland
―	Stefan Holz, Weißenburg, Deutschland
―	Franz Karl, Pleinfeld, Deutschland
―	Albert Burghart, Königsmoos, Deutschland

Die Prokuristen vertreten die Gesellschaft gemeinsam mit einem Geschäftsführer.

4. Mitarbeiter im Durchschnitt des Geschäftsjahres

Im Geschäftsjahr waren durchschnittlich 327 gewerbliche Arbeitnehmer (i. Vj. 279) und 78 Angestellte (i. Vj. 62) beschäftigt.

5. Bezüge der Organe der Gesellschaft

Auf die Angabe der Gesamtbezüge der Geschäftsführer wird gemäß § 286 Abs. 4 HGB verzichtet.

6. Anteilsbesitz

	Anteile am Kapital %	GJ 2016 Eigenkapital TEUR	GJ 2016 Jahresergebnis TEUR
NIFCO KTW America Corp.	90	15.800	-2.727
Sitz in Atlanta,GA USA

7. Honorar des Abschlussprüfers

	T€
Abschlussprüfungsleistungen	79

8. Konzernabschluss

Nifco Inc., Tokio, Japan, ist das Konzernunternehmen, das den Konzernabschluss für den größten und zugleich kleinsten Kreis von Unternehmen aufstellt.

Der Konzernabschluss ist in den Geschäftsräumen der Nifco Inc., Tokio, Japan, einzusehen.

9. Ergebnisverwendung

Der Jahresfehlbetrag in Höhe von € -357.959,45 wird auf neue Rechnung vorgetragen.

10. Nachtragsbericht

Vorgänge von besonderer Bedeutung nach dem 31. Dezember 2016 haben sich nicht ereignet.

Weißenburg, den 30. März 2017

Toshiyuki Yamamoto

Sanshiro Ogasawara

Masaya Nagaoka

Karsten Schmidt

Roland Furtmayr

Tsukasa Naganawa

Erläuterungen zur Bilanz zum 31. Dezember 2016 Entwicklung des Anlagevermögens

	Anschaffungs- und Herstellungskosten
	01. Jan. 2016 €	Zugänge €	Umbuchungen €	Abgänge €	31. Dez. 2016 €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Software	191.070,95	60.610,68	0,00	32.837,00	218.844,63
2. Auftragsbestand	4.961.923,49	0,00	0,00	4.961.923,49	0,00
3. Kundenstamm	19.913.662,65	0,00	0,00	0,00	19.913.662,65
4. Geschäfts- und Firmenwert	30.570.817,42	0,00	0,00	0,00	30.570.817,42
	55.637.474,51	60.610,68	0,00	4.994.760,49	50.703.324,70
II. SACHANLAGEN
1. Bauten auf fremden Grundstücken	219.313,52	12.681,10	90.000,00	0,00	321.994,62
2. technische Anlagen und Maschinen	11.611.402,92	1.674.223,30	2.191.451,85	446.914,36	15.030.163,71
3. andere Anlagen, Betriebs- und Geschäftsausstattung	2.568.969,65	1.010.733,92	0,00	28.857,90	3.550.845,67
4. geleistete Anzahlungen und Anlagen im Bau	584.500,00	1.895.593,54	-2.281.451,85	0,00	198.641,69
	14.984.186,09	4.593.231,86	0,00	475.772,26	19.101.645,69
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	16.095.252,78	0,00	0,00	0,00	16.095.252,78
	86.716.913,38	4.653.842,54	0,00	5.470.532,75	85.900.223,17

	Kumulierte Abschreibungen
	01. Jan. 2016 €	Zuführungen €	Abgänge €	31. Dez. 2016 €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Software	154.201,95	25.521,68	32.832,00	146.891,63
2. Auftragsbestand	4.961.923,49	0,00	4.961.923,49	0,00
3. Kundenstamm	3.525.594,76	5.364.801,24	0,00	8.890.396,00
4. Geschäfts- und Firmenwert	3.210.395,42	3.040.047,00	0,00	6.250.442,42
	11.852.115,62	8.430.369,92	4.994.755,49	15.287.730,05
II. SACHANLAGEN
1. Bauten auf fremden Grundstücken	31.822,52	15.224,10	0,00	47.046,62
2. technische Anlagen und Maschinen	7.255.949,25	1.307.243,49	46.817,36	8.516.375,38
3. andere Anlagen, Betriebs- und Geschäftsausstattung	1.425.916,31	499.821,26	24.573,90	1.901.163,67
4. geleistete Anzahlungen und Anlagen im Bau	0,00	0,00	0,00	0,00
	8.713.688,08	1.822.288,85	71.391,26	10.464.585,67
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	0,00	0,00	0,00	0,00
	20.565.803,70	10.252.658,77	5.066.146,75	25.752.315,72

	Buchwert
	31. Dez. 2016 €	31. Dez. 2015 €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Software	71.953,00	36.869,00
2. Auftragsbestand	0,00	0,00
3. Kundenstamm	11.023.266,65	16.388.067,89
4. Geschäfts- und Firmenwert	24.320.375,00	27.360.422,00
	35.415.594,65	43.785.358,89
II. SACHANLAGEN
1. Bauten auf fremden Grundstücken	274.948,00	187.491,00
2. technische Anlagen und Maschinen	6.513.788,33	4.355.453,67
3. andere Anlagen, Betriebs- und Geschäftsausstattung	1.649.682,00	1.143.053,34
4. geleistete Anzahlungen und Anlagen im Bau	198.641,69	584.500,00
	8.637.060,02	6.270.498,01
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	16.095.252,78	16.095.252,78
	60.147.907,45	66.151.109,68

Erläuterungen zur Bilanz zum 31. Dezember 2016

Aktive latente Steuern

	31. Dezember 2015			31. Dezember 2016
Bilanzposition	Handelsbilanz €	Steuerbilanz €	Abweichung €	Handelsbilanz €	Steuerbilanz €	Abweichung €
Aktiva
Kundenbeziehungen	16.388.067,89	0,00	-16.388.067,89	11.023.266,65	0,00	-11.023.266,65
Geschäfts- oder Firmenwert	27.360.422,86	49.598.752,70	22.238.329,84	24.320.376,86	45.895.252,65	21.574.875,79
Anlagevermögen	1.233.538,00	1.187.688,22	-45.849,78	843.154,01	769.300,58	-73.853,43
Forderungen aus LuL in Fremdwährung	0,00	0,00	0,00	15.761.223,94	15.743.634,82	-17.589,12
	44.982.028,75	50.786.440,92	5.804.412,17	51.948.021,46	62.408.188,05	10.460.166,59
Passiva
Drohverlustrückstellung	32.292,52	0,00	32.292,52	0,00	0,00	0,00
Jubiläumsrückstellung	65.421,00	0,00	65.421,00	75.000,00	55.062,00	19.938,00
Urlaubsrückstellung	339.769,29	298.996,98	40.772,31	526.449,01	463.275,12	63.173,89
Überstundenrückstellung	211.243,07	185.893,89	25.349,18	344.048,36	302.762,56	41.285,80
Verbindlichkeiten aus LuL in Fremdwährung	0,00	0,00	0,00	5.450.329,71	5.462.275,99	-11.946,28
	648.725,88	484.890,87	163.835,01	6.395.827,08	6.283.375,67	112.451,41
			5.640.577,16			10.572.618,00

Aktive latente Steuern 31.12.2016	2.968.262,51
bislang aktive latente Steuern	1.678.569,52
Zuführung aktive latente Steuern (Ertrag)	1.289.692,99

Bestätigungsvermerk des Abschlussprüfers

Wir haben den Jahresabschluss - bestehend aus Bilanz, Gewinn- und Verlustrechnung sowie Anhang - unter Einbeziehung der Buchführung und den Lagebericht der NIFCO KTW GmbH, Weißenburg in Bayern, für das Geschäftsjahr vom 1. Januar bis 31. Dezember 2016 geprüft. Die Buchführung und die Aufstellung von Jahresabschluss und Lagebericht nach den deutschen handelsrechtlichen Vorschriften liegen in der Verantwortung der Geschäftsführung der Gesellschaft. Unsere Aufgabe ist es, auf der Grundlage der von uns durchgeführten Prüfung eine Beurteilung über den Jahresabschluss unter Einbeziehung der Buchführung und über den Lagebericht abzugeben.

Wir haben unsere Jahresabschlussprüfung nach § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung vorgenommen. Danach ist die Prüfung so zu planen und durchzuführen, dass Unrichtigkeiten und Verstöße, die sich auf die Darstellung des durch den Jahresabschluss unter Beachtung der Grundsätze ordnungsmäßiger Buchführung und durch den Lagebericht vermittelten Bildes der Vermögens-, Finanz- und Ertragslage wesentlich auswirken, mit hinreichender Sicherheit erkannt werden. Bei der Festlegung der Prüfungshandlungen werden die Kenntnisse über die Geschäftstätigkeit und über das wirtschaftliche und rechtliche Umfeld der Gesellschaft sowie die Erwartungen über mögliche Fehler berücksichtigt. Im Rahmen der Prüfung werden die Wirksamkeit des rechnungslegungsbezogenen internen Kontrollsystems sowie Nachweise für die Angaben in Buchführung, Jahresabschluss und Lagebericht überwiegend auf der Basis von Stichproben beurteilt. Die Prüfung umfasst die Beurteilung der angewandten Bilanzierungsgrundsätze und der wesentlichen Einschätzungen der Geschäftsführung sowie die Würdigung der Gesamtdarstellung des Jahresabschlusses und des Lageberichts. Wir sind der Auffassung, dass unsere Prüfung eine hinreichend sichere Grundlage für unsere Beurteilung bildet.

Unsere Prüfung hat zu keinen Einwendungen geführt.

Nach unserer Beurteilung aufgrund der bei der Prüfung gewonnenen Erkenntnisse entspricht der Jahresabschluss den gesetzlichen Vorschriften und vermittelt unter Beachtung der Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft. Der Lagebericht steht in Einklang mit dem Jahresabschluss, entspricht den gesetzlichen Vorschriften, vermittelt insgesamt ein zutreffendes Bild von der Lage der Gesellschaft und stellt die Chancen und Risiken der zukünftigen Entwicklung zutreffend dar.

Nürnberg, den 21. April 2017

KPMG AG
Wirtschaftsprüfungsgesellschaft

Herr, Wirtschaftsprüfer

Eberle, Wirtschaftsprüfer

Feststellung des Jahresabschlusses

Der Jahresabschluss zum 31. Dezember 2016 wurde festgestellt am 31. März 2017.

2e:Tfa164,

NIFCO Germany GmbH

Weißenburg

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.04.2022 bis zum 31.03.2023

Nifco Inc.

Kanagawa/Japan

Annual Securities Report

Cover

Part I. Information on the Company

I. Company Overview

1. Trends in Key Management Indicators, etc

2. History

3. Description of Business

4. Status of Subsidiaries and Associates

5. Status of Employees

II. Business Overview

1. Management Policies, Management Environment and Issues to Be Addressed

2. Sustainability Concept and Initiatives

3. Business Risks

4. Management's Analysis of Financial Position, Operating Results and Cash Flows

5. Important Business Contracts, etc.

6. Research and Development Activities

III. Status of Facilities

1. Overview of Capital Investment, etc

2. Status of Major Facilities

3. Plans for Construction and Retirement, etc. of Facilities

IV. Status of the Company

1. Status of Shares, etc

(1) Total number of shares, etc.

(2) Status of share acquisition rights, etc.

(3) Exercise status, etc. of moving strike convertible bonds with share acquisition rights, etc.

(4) Trends in total number of issued shares and share capital, etc.

(5) Shareholding status

(6) Status of major shareholders

(7) Status of voting rights

(8) Details of executive and employee stock ownership plan

2. Status of Acquisition, etc. of Treasury Shares

3. Dividend Policy

4. Status of Corporate Governance, etc

V. Financial Information

1. Consolidated Financial Statements, etc

(1) Consolidated Financial Statements

(2) Others

2. Financial Statements, etc

(1) Financial Statements

(2) Details of major assets and liabilities

(3) Others

VI. Stock-Related Administration for the Company

VII. Reference Information on the Company

1. Information on the Parent Company, etc. of the Company

2. Other Reference Information

Part II. Information on the Guarantee Companies, etc. of the Company

[Audit Report]

[Internal Control Report]

[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]	+81-46-839-0225
[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]	+81-3-5476-4853
[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)

Part I. Information on the Company

I. Company Overview

1. Trends in Key Management Indicators, etc.

(1) Consolidated management indicators, etc.

Term		67th	68th
Fiscal years ended		March 31, 2019	March 31, 2020
Net sales	(millions of yen)	288,902	288,012
Ordinary profit	(millions of yen)	28,778	28,765
Profit attributable to owners of parent	(millions of yen)	20,753	18,321
Comprehensive income	(millions of yen)	14,802	16,923
Net assets	(millions of yen)	160,690	168,786
Total assets	(millions of yen)	284,842	304,184
Net assets per share	(yen)	1,538.96	1,630.57
Basic earnings per share	(yen)	199.90	177.87
Diluted earnings per share	(yen)	192.73	171.43
Equity ratio	(%)	55.7	54.8
Return on equity	(%)	13.2	11.3
Price-earnings ratio	(Times)	14.1	10.9
Cash flows from operating activities	(millions of yen)	37,371	35,829
Cash flows from investing activities	(millions of yen)	(14,884)	(21,617)
Cash flows from financing activities	(millions of yen)	(7,076)	1,040
Cash and cash equivalents at end of period	(millions of yen)	74,200	88,552
Number of employees		11,804	11,486
[Average number of temporary employees]	(persons)	(3,699)	(3,449)

Term	69th	70th	71st
Fiscal years ended	March 31, 2021	March 31, 2022	March 31, 2023
Net sales	256,078	283,777	321,771
Ordinary profit	29,535	33,602	37,876
Profit attributable to owners of parent	18,402	22,959	21,170
Comprehensive income	17,511	33,180	33,527
Net assets	178,649	200,875	226,127
Total assets	307,127	333,068	359,150
Net assets per share	1,737.80	1,978.36	2,237.06
Basic earnings per share	181.09	227,27	211.28
Diluted earnings per share	-	-	-
Equity ratio	57.5	59.5	62.2
Return on equity	10.7	12.3	10.0
Price-earnings ratio	22.3	12.3	17.8
Cash flows from operating activities	39,922	31,743	37,261
Cash flows from investing activities	(12,570)	(9,479)	(11,530)
Cash flows from financing activities	(20,273)	(13,516)	(17,418)
Cash and cash equivalents at end of period	95,744	109,992	122,233
Number of employees	10,745	10,193	10,169
[Average number of temporary employees]	(3,359)	(3,004)	(3,100)

(Notes)

1. Diluted earnings per share for the 69th, 70th, and 71 st 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.

(2) Non-consolidated management indicators

Term		67th	68th
Fiscal years ended		March 31, 2019	March 31, 2020
Net sales	(millions of yen)	83,644	88,496
Ordinary profit	(millions of yen)	15,098	15,928
Profit	(millions of yen)	13,240	13,163
Share capital	(millions of yen)	7,290	7,290
Total number of issued shares	(Thousand shares)	107,508	107,508
Net assets	(millions of yen)	95,517	100,090
Total assets	(millions of yen)	165,522	184,646
Net assets per share	(yen)	925.73	979.26
Dividends per share		62.00	62.00
(Interim dividends per share)	(yen)	(31.00)	(31.00)
Basic earnings per share	(yen)	127.53	127.79
Diluted earnings per share	(yen)	122.93	123.14
Equity ratio	(%)	57.7	54.2
Return on equity	(%)	14.1	13.5
Price-earnings ratio	(Times)	22.1	15.2
Dividend payout ratio	(%)	48.6	48.5
Number of employees		1,290	1,355
[Average number of temporary employees]	(persons)	(494)	(503)
Total shareholder return	(%)	79.0	56.5
[Benchmark: TOPIX including dividends]	(%)	(95.0)	(85.9)
Highest share price	(yen)	4,070	3,290
Lowest share price	(yen)	2,437	1,661

Term	69th	70th	71st
Fiscal years ended	March 31, 2021	March 31, 2022	March 31, 2023
Net sales	79,584	83,365	86,391
Ordinary profit	19,201	18,617	22,389
Profit	15,931	16,629	18,674
Share capital	7,290	7,290	7,290
Total number of issued shares	107,508	107,508	107,508
Net assets	109,266	115,575	126,926
Total assets	185,203	191,152	202,483
Net assets per share	1,075.97	1,153.75	1,270.14
Dividends per share	53.00	62.00	64.00
(Interim dividends per share)	(25.00)	(31.00)	(31.00)
Basic earnings per share	156.78	164.62	186.37
Diluted earnings per share	-	-	-
Equity ratio	59.0	60.5	62.7
Return on equity	15.2	14.8	15.4
Price-earnings ratio	25.7	17.0	20.1
Dividend payout ratio	33.8	37.7	34.3
Number of employees	1,388	1,375	1,361
[Average number of temporary employees]	(468)	(411)	(383)
Total shareholder return	115.4	83.0	111.0
[Benchmark: TOPIX including dividends]	(122.1)	(124.6)	(131.8)
Highest share price	4,210	4,370	3,775
Lowest share price	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.

2. 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.

3. "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.

2. History

Substantial surviving company

Upon the merger of Nifco Inc. (par value of shares: 500 yen) (founded in February 1967, and has been engaged in the manufacture and sales of industrial fasteners) and Nichiei Bussan Co., Ltd. (founded in May 1953, and has been engaged in the import and export of leaf tobacco and miscellaneous beans, as well as the import and export of industrial fasteners) in October 1977, the Company (founded in October 1946, former Koto Kigyo Co., Ltd; par value of shares: 50 yen) became the formal surviving company and absorbed both companies to change the par value of their shares to 50 yen from 500 yen.

Therefore, among the absorbed companies, Nifco Inc. (par value of shares: 500 yen), which has superior size in terms of net sales and total assets, is listed as the substantial surviving company.

The Company was founded on February 13, 1967, as a joint venture between Nichiei Bussan Co., Ltd. and Illinois Tool Works Inc. (a manufacturer of industrial fasteners with subsidiaries, affiliates and business partners worldwide).

February 1967	Nippon Industrial Fastener Corporation (renamed to Nifco Inc. in December 1970) was co-founded by Nichiei Bussan Co., Ltd. and Illinois Tool Works Inc. with a starting capital of 48,000 thousand yen, and entered into a technical assistance contract with Illinois Tool Works Inc. [As they were absorbed by Nifco Inc. (formal surviving company whose par value of shares is 50 yen and whose trade name was changed from Koto Kogyo Co., Ltd., a dormant company, to Nifco Inc. on May 26, 1977, on the premise of the merger) in October 1977 for the purpose of changing the par value of shares, the registered date of incorporation was October 8, 1946. ]
July 1969	Established Osaka Sales Department in Nishi-ku, Osaka-shi.
December 1976	Newly established Nagoya Plant in Toyota-shi, Aichi.
October 1977	Absorbed Nichiei Bussan Co., Ltd. (changed the par value of the shares to 50 yen from 500 yen).
May 1978	Established Kitakyushu Sales Department in Miyako-gun, Fukuoka.
July 1979	Listed on the second section of the Tokyo Stock Exchange.
September 1980	Newly constructed Sagamihara Plant in Sagamihara-shi, Kanagawa.
April 1982	Newly constructed Utsunomiya Office in Kawachi-gun, Tochigi.
January 1983	Relocated Osaka Sales Office to Suita-shi, Osaka.
May 1983	Co-founded Nifco Taiwan Corporation in Taipei, Taiwan.
March 1984	Listed on the first section of the Tokyo Stock Exchange.
April 1984	Established Hamamatsu Branch Office (current Hamamatsu Sales Office) in Hamamatsu-shi, Shizuoka.
January 1985	Co-founded Korea Industrial Fastener Corporation (current Nifco Korea Inc.) in Gumi, Korea.
November 1986	Co-founded ITW-Nifco Inc. in Ohio, U.S.A.
July 1987	Founded Nifco (HK) Ltd., a subsidiary, in Hong Kong, China.
August 1987	Newly constructed Hiroshima Office (current Hiroshima Sales Office) in Asaminami-ku, Hiroshima-shi.
November 1988	Co-founded Union Nifco Co., Ltd. in Bangkok, Thailand.
February 1990	Co-founded JT Nifco Inc. (current Nifco Yamagata Inc.) in Yamagata-shi, Yamagata.
March 1990	Established Tokyo Headquarters in Minato-ku, Tokyo.
July 1990	Acquired Elta Plastics Ltd. (current Nifco UK Ltd.) in Cleveland, England.
October 1990	Co-founded Nifco (Malaysia) Sdn. Bhd. (current Nifco Manufacturing (Malaysia) Sdn. Bhd.) in Selangor, Malaysia.
December 1991	Co-founded Kyushu JT Nifco Inc. (current Nifco Kumamoto Inc.) in Kikuchi-gun, Kumamoto.
July 1995	Founded Nifco (Singapore) Pte. Ltd., a subsidiary, in Singapore.
March 1996	Founded Shanghai Nifco Plastic Manufacturer Co., Ltd., a subsidiary, in Shanghai, China.
April 1996	Founded Nifco U.S. Corporation (current Nifco America Corporation), a subsidiary, in Ohio, U.S.A.
July 1996	Acquired stocks of The Japan Times, Ltd., Simmons Co., Ltd. and Simmons Bedding & Furniture (HK) Limited, and made them subsidiaries.
December 1997	Acquired stocks of ITW-Nifco Inc., a joint venture, in Ohio, U.S.A. and merged it into Nifco U.S. Corporation (current Nifco America Corporation) as the surviving company.
May 1999	Relocated Kyushu Sales Office to Kokurakita-ku, Kitakyushu-shi.
April 2001	Acquired four companies under the Acriplas Group (current Nifco Products Espana, S.L.U.) in Spain.
November 2001	Founded Tifco (Dongguan) Co., Ltd., a fifty-fifty joint venture with Nifco Taiwan Corporation, in Changan Town, Dongguan, Guangdong, China.
February 2002	Founded Dongguan Nifco Co., Ltd., a subsidiary, in Shilong Zhen, Dongguan, Guangdong, China.
June 2002	Acquired additional stocks of Nifco Taiwan Corporation, a joint venture in Taiwan, and made it a subsidiary.
July 2002	Founded Nifco (Thailand) Co., Ltd., a subsidiary, in Chonburi, Thailand.
November 2004	Founded Beijing Nifco Co., Ltd., a subsidiary, in Tongzhou District, Beijing, China.
January 2005	Founded Kifco Vietnam Ltd. (current Nifco Vietnam Ltd.), a subsidiary, in Tainin, Vietnam.
March 2005	Acquired additional stocks of JT Nifco Inc. (current Nifco Yamagata Inc.) and Kyushu JT Nifco Inc. (current Nifco Kumamoto Inc.), which are joint ventures, and made them subsidiaries.
February 2006	Founded Nifco Poland Sp. z o.o., a subsidiary, in Swidnica, Poland.
March 2007	Founded Nifco North America Inc., a subsidiary, in Kentucky, U.S.A.
June 2007	Founded Nifco Deutschland GmbH (Nifco KTS GmbH), a subsidiary, in Eschborn, Germany.
September 2008	Acquired additional stocks of Union Nifco Co., Ltd., a joint venture in Thailand, and made it a subsidiary.
October 2008	Founded Nifco Korea USA Inc. in Alabama, U.S.A.
April 2009	Nifco America Corporation, a subsidiary, absorbed Nifco North America Inc., a subsidiary.
May 2009	Simmons Co., Ltd. newly constructed Fuji-Oyama Plant in Sunto-gun, Shizuoka.
January 2010	Founded Nifco (Tianjin) Co., Ltd., a subsidiary, in Tianjin, China.
April 2010	Founded Nifco Enterprise Management (Shanghai) Co., Ltd., a subsidiary, in Shanghai, China.
June 2010	Founded Nifco India Private Ltd., a subsidiary, in Gurgaon, India.
July 2010	Founded Nifco South India Manufacturing Private Ltd., a subsidiary, in Chennai, India.
November 2010	Founded Nifco (Hubei) Co., Ltd., a subsidiary, in Ezhou, Hubei, China.
December 2010	Founded Nifco Korea Poland Sp. z o.o., a subsidiary, in Zory, Poland.
January 2011	Founded Nifco (Jiang Su) Co., Ltd., a subsidiary, in Zhangjiagang, Jiangsu, China.
May 2011	Founded PT. Nifco Indonesia, a subsidiary, in Jakarta, Indonesia.
June 2011	Founded Nifco Yancheng Co., Ltd., a subsidiary, in Yancheng, Jiangsu, China.
July 2012	Founded Nifco Central Mexico S. de R.L. de C.V., a subsidiary, in Irapuato, Mexico.
March 2013	Newly constructed Nifco Technology Development Center in Yokosuka-shi, Kanagawa.
April 2013	Acquired KTS and its group companies in Germany.
May 2014	Acquired KTW and its group companies in Germany.
January 2015	Relocated the head office to Yokosuka-shi, Kanagawa.
April 2015	Founded Nifco KTW America Corporation, a subsidiary, in Georgia, U.S.A.
September 2015	Founded Nifco (Chongqing) Limited Liability Company, a subsidiary, in Chongqing, China.
August 2016	Constructed an explosion-proof tower and laboratory tower in Yokosuka-shi, Kanagawa.
April 2018	Newly established and put into practice the corporate philosophy, logo and slogan.
November 2018	Relocated Tokyo Headquarters within Minato-ku, Tokyo.
December 2018	Founded Nifco Kitakanto Inc., a subsidiary, in Minato-ku, Tokyo.
May 2019	Nifco Kumamoto Inc., a subsidiary, relocated its head office to Kikuchi-shi, Kumamoto.
July 2019	Carried out an absorption-type merger with Nifco KTW GmbH, a subsidiary, as the surviving company and Nifco KTS GmbH, a subsidiary, as the absorbed company, and changed the name of the surviving company to Nifco Germany GmbH.
December 2019	Nifco Kitakanto Inc., a subsidiary, relocated its head office to Ashikaga-shi, Tochigi.
June 2021	Transitioned to a company with an Audit & Supervisory Committee.
April 2022	Transitioned to the Prime Market of the Tokyo Stock Exchange.
December 2022	Founded Nifco Europe GmbH, a subsidiary, in Solingen, Germany.

3. Description of Business

The Group is comprised of the Company, 52 consolidated subsidiaries and 1 associate accounted for by the equity method. Their main business areas, their position in these businesses and relationships with each segment are as follows.

The following two divisions are the same as the segments described in "(1) Notes to Consolidated Financial Statements" in "1. Consolidated Financial Statements, etc." in "V. Financial Information."

(Industrial plastic parts & components)

Industrial plastic fasteners, plastic precision molded parts and molds:	The Company manufactures and sells plastic molded products and molds, and Nifco Yamagata Inc., Nifco Kumamoto Inc., Nifco Kitakanto Inc. and others manufacture and sell plastic molded products and molds.
	Nichiei Seiki Co., Ltd. manufactures and sells molds.
	In addition, Nifco America Corporation, Nifco UK Ltd., Nifco Korea Inc., Shanghai Nifco Plastic Manufacturer Co., Ltd., Nifco Taiwan Corporation, Nifco (Thailand) Co., Ltd. and others manufacture and sell molded plastic products and molds overseas.
	Some of these products are purchased and sold between the Company and its subsidiaries and associates.
(Bedding & furniture) :	Simmons Co., Ltd. manufactures and sells beds and imports and sells furniture. In addition, Simmons Bedding & Furniture (HK) Limited and others are engaged in the Bedding & furniture business overseas.

A diagram of the business is as follows.

Consolidated subsidiaries and associates accounted for by the equity method are as follows.

Consolidated subsidiaries

(1) Nifco America Corporation	Manufacture and sale of plastic molded products
(2) Nifco Korea USA Inc.	Manufacture and sale of plastic molded products
(3) Nifco KTW America Corporation	Manufacture and sale of plastic molded products
(4) Nifco Central Mexico S.de R.L.de C.V.	Manufacture and sale of plastic molded products
(5) Guadalupe Property & Assets, S.de R.L.de C.V.	Industrial plastic parts & components
(6) Nifco Europe GmbH	Industrial plastic parts & components
(7) Nifco U.K. Ltd.	Manufacture and sale of plastic molded products
(8) Nifco Poland Sp.z o.o.	Manufacture and sale of plastic molded products
(9) Nifco Korea Poland Sp.z o.o.	Manufacture and sale of plastic molded products
(10) Nifco Germany GmbH	Manufacture and sale of plastic molded products
(11) Shanghai Nifco Plastic Manufacturer Co., Ltd.	Manufacture and sale of plastic molded products
(12) Dongguan Nifco Co., Ltd.	Manufacture and sale of plastic molded products
(13) Tifco (Dongguan) Co., Ltd.	Manufacture and sale of plastic molded products
(14) Beijing Nifco Co., Ltd.	Manufacture and sale of plastic molded products
(15) Nifco (Tianjin) Co., Ltd.	Manufacture and sale of plastic molded products
(16) Nifco (Hubei) Co., Ltd.	Manufacture and sale of plastic molded products
(17) Nifco (Jiangsu) Co., Ltd.	Manufacture and sale of plastic molded products
(18) Nifco Yancheng Co., Ltd.	Manufacture and sale of plastic molded products
(19) Nifco (Chongqing) Limited Liability Company	Manufacture and sale of plastic molded products
(20) Nifco (HK) Ltd.	Industrial plastic parts & components
(21) Nifco Taiwan Corporation	Manufacture and sale of plastic molded products
(22) Nifco Korea Inc.	Manufacture and sale of plastic molded products
(23) Nifco (Thailand) Co.,Ltd.	Manufacture and sale of plastic molded products
(24) Union Nifco Co., Ltd.	Manufacture and sale of plastic molded products
(25) Nifco Manufacturing (Malaysia) Sdn. Bhd.	Manufacture and sale of plastic molded products
(26) Nifco Vietnam Ltd.	Manufacture and sale of plastic molded products
(27) Nifco India Private Ltd.	Manufacture and sale of plastic molded products
(28) Nifco South India Manufacturing Private Ltd.	Manufacture and sale of plastic molded products
(29) PT.Nifco Indonesia	Manufacture and sale of plastic molded products
(30) Nifco Yamagata Inc.	Manufacture and sale of plastic molded products
(31) Nifco Kumamoto Inc.	Manufacture and sale of plastic molded products
(32) Nifco Kitakanto Inc.	Manufacture and sale of plastic molded products
(33) Nifco Trading Ltd.	Entrusted manufacture and sale of plastic molded products
(34) Simmons Co., Ltd.	Manufacture and sale of beds, import and sale of furniture
(35) Simmons Bedding & Furniture (HK) Limited	Bedding & furniture
(36) Shanghai Simmons Bedding & Furniture Sales Limited	Sale of beds and furniture
(37) Beijing Simmons Bedding & Furniture Limited	Sale of beds and furniture
(38) Shenzhen Simmons Bedding & Furniture Limited	Sale of beds and furniture
(39) Simmons Bedding & Furniture (Suzhou) Limited	Manufacture and sale of beds
(40) Simmons (Southeast Asia)Private Limited	Sale of beds and furniture
(41) Simmons Bedding & Furniture (Taiwan) Ltd.	Sale of beds and furniture
11 other companies

Associates accounted for by the equity method

(1) Nichiei Seiki Co., Ltd.

Manufacture and sale of molds

4. Status of Subsidiaries and Associates

(Consolidated subsidiaries)

Name	Location	Share capital	Main businesses	Holding rate of voting rights (%)	Description of relationship
Nifco America Corporation (Notes) ^{1, 4}	Ohio, U.S.A.	Million U.S. dollars 3.5	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
Nifco Korea USA Inc. (Note 3)	Alabama, U.S.A.	Million U.S. dollars 5.5	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(75)
Nifco KTW America Corporation (Notes) ^{1, 3}	Georgia, U.S.A.	Thousand U.S. dollars 1.0	Manufacture and sale of plastic molded products	100	The Company provides working capital loans and jointly guarantees bank loans. Concurrent officers: Yes
				(100)
Nifco Central Mexico S. de R.L. de C.V.(Notes) ^{1, 3}	Guanajuato, Mexico	Million Mexican pesos 325.2	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(52.51)
Guadalupe Property & Assets, S. de R.L. de C.V. (Notes) ^{1, 3}	Guadalupe, Mexico	Million Mexican pesos 268.2	Industrial plastic parts & components	100	Concurrent officers: Yes
				(75)
Nifco Europe GmbH (Note) ¹	Solingen, Germany	Thousand euros 25.0	Industrial plastic parts & components	100	Concurrent officers: Yes
Nifco U.K. Ltd. (Notes) ^{1, 3}	Stockton-on-Tees, United Kingdom	Million British pounds 14.5	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Nifco Poland Sp.z o.o. (Notes) ^{1, 3}	Swidnica, Poland	Million zloty 9.0	Manufacture and sale of plastic molded products	100	The Company provides working capital loans and jointly guarantees bank loans. Concurrent officers: Yes
				(100)
Nifco Korea Poland Sp. z o.o. (Notes) ^{1, 3}	Zory, Poland	Million zloty 6.0	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Nifco Germany GmbH (Notes) ^{1, 3}	Weissenburg, Germany	Thousand euros 25.0	Manufacture and sale of plastic molded products	100	The Company guarantees bank loans. Concurrent officers: Yes
				(100)
Shanghai Nifco Plastic Manufacturer Co., Ltd. (Note 3)	Shanghai, China	Million U.S. dollars 3.0	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Dongguan Nifco Co., Ltd. (Note 3)	Guangdong, China	Million HK dollars 75.0	Manufacture and sale of plastic molded products	90	Concurrent officers: Yes
				(90)
Tifco (Dongguan) Co., Ltd. (Note 3)	Guangdong, China	Million U.S. dollars 1.9	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Beijing Nifco Co., Ltd. (Notes) ^{1, 3}	Beijing, China	Million U.S. dollars 14.5	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Nifco (Tianjin) Co., Ltd. (Notes) ^{1, 3}	Tianjin, China	Million U.S. dollars 18.5	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Nifco (Hubei) Co., Ltd. (Notes) ^{1, 3}	Hubei, China	Million U.S. dollars 10.0	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Nifco (Jiangsu) Co., Ltd. (Notes) ^{1, 3}	Jiangsu, China	Million U.S. dollars 15.6	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Nifco Yancheng Co., Ltd. (Notes) ^{1, 3}	Jiangsu, China	Million U.S. dollars 30.5	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Nifco (Chongqing) Limited Liability Company (Notes) ^{1, 3}	Chongqing, China	Million U.S. dollars 14.8	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
				(100)
Nifco (HK) Ltd. (Note) ¹	Hong Kong	Million HK dollars 200.0	Industrial plastic parts & components	100	Concurrent officers: Yes
Nifco Taiwan Corporation	Taipei, Taiwan	Million Taiwan dollars 150.0	Manufacture and sale of plastic molded products	92	Concurrent officers: Yes
Nifco Korea Inc. (Notes) ^{1, 4}	Asan-si, Korea	Million won 34,400.0	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
Nifco (Thailand) Co.,Ltd. (Note) ¹	Chonburi, Thailand	Million baht 320.0	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
Union Nifco Co., Ltd.	Bangpakong, Thailand	Million baht 100.0	Manufacture and sale of plastic molded products	50	Concurrent officers: Yes
Nifco Manufacturing (Malaysia) Sdn. Bhd.	Selangor, Malaysia	Million Malaysian ringgit 7.5	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
Nifco Vietnam Ltd. (Note 3)	Tay Ninh, Vietnam	Million U.S. dollars 2.4	Manufacture and sale of plastic molded products	100 (75)	Concurrent officers: Yes
Nifco India Private Ltd. (Note) ¹	Haryana, India	Million Indian rupees 1,130.0	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
Nifco South India Manufacturing Private Ltd.(Notes) ^{1, 3}	Tamilnadu, India	Million Indian rupees 1,294.3	Manufacture and sale of plastic molded products	100 (75)	Concurrent officers: Yes
PT.Nifco Indonesia (Note) ¹	Jawa Barat, Indonesia	Million U.S. dollars 18.8	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
Nifco Yamagata Inc. (Note) ¹	Yamagata-shi, Yamagata	Millions of yen 300.0	Manufacture and sale of plastic molded products	100	Concurrent officers: Yes
Nifco Kumamoto Inc. (Note) ¹	Kikuchi-shi, Kumamoto	Millions of yen 800.0	Manufacture and sale of plastic molded products	100	The Company lends working capital, etc. Concurrent officers: Yes
Nifco Kitakanto Inc.	Ashikaga-shi, Tochigi	Millions of yen 300.0	Manufacture and sale of plastic molded products	100	The Company lends working capital, etc. Concurrent officers: Yes
Nifco Trading Ltd.	Yokosuka-shi, Kanagawa	Millions of yen 10.0	Entrusted manufacture and sale of plastic molded products	100	The Company lends working capital, etc. Concurrent officers: Yes
Simmons Co., Ltd.	Minato-ku, Tokyo	Millions of yen 259.1	Manufacture and sale of beds Import and sale of furniture	99.9	Concurrent officers: Yes
Simmons Bedding & Furniture (HK) Limited (Note 3)	Hong Kong	Million HK dollars 10.0	Bedding & furniture	100	Concurrent officers: Yes
				(100)
Shanghai Simmons Bedding & Furniture Sales Limited (Note 3)	Shanghai, China	Million U.S. dollars 0.4	Sale of beds and furniture	100	Concurrent officers: Yes
				(100)
Simmons Bedding & Furniture (Suzhou) Limited (Notes) ^{1, 3}	Jiangsu, China	Million U.S. dollars 25	Manufacture and sale of beds	100	Concurrent officers: Yes
				(100)
Simmons (Southeast Asia)Private Limited (Note 3)	Beach Road,Singapore	Million Singapore dollars 0.3	Sale of beds and furniture	100	Concurrent officers: Yes
				(100)
Simmons Bedding & Furniture (Taiwan) Ltd. (Note 3)	Taipei, Taiwan	Million Taiwan dollars 1.0	Sale of beds and furniture	100	Concurrent officers: Yes
				(100)
13 other companies

(Associates accounted for by the equity method)

Name	Location	Share capital	Main businesses	Holding rate of voting rights (%)	Description of relationship
Nichiei Seiki Co., Ltd.	Kawasaki-shi, Kanagawa	Millions of yen 94.0	Manufacture and sale of molds	27.2	Interlocking directorate: No

(Notes)

1. They fall under specified subsidiaries.

2. None of the above consolidated subsidiaries has filed securities registration statements or securities reports.

3. The figures in parentheses ( ) in the "Holding rate of voting rights" column indicate indirect holding rates included in the figures outside the parentheses.

4. Net sales of Nifco America Corporation and Nifco Korea Inc. (excluding intercompany sales between consolidated companies) accounted for more than 10% of consolidated net sales.

Nifco America Corporation
Major profit/loss information	(1) Net sales	43,761 Millions of yen
	(2) Ordinary profit	995 Millions of yen
	(3) Profit	941 Millions of yen
	(4) Net assets	18,667 Millions of yen
	(5) Total assets	25,677 Millions of yen
Nifco Korea Inc.
Major profit/loss information	(1) Net sales	46,124 Millions of yen
	(2) Ordinary profit	7,128 Millions of yen
	(3) Profit	5,471 Millions of yen
	(4) Net assets	38,061 Millions of yen
	(5) Total assets	44,968 Millions of yen

5. Status of Employees

(1) Consolidated level

As of March 31, 2023

Segment name	Number of employees (persons)
Industrial plastic parts & components	9,114	(2,841)
Bedding & furniture	914	(259)
Corporate (common)	141	(-)
Total	10,169	(3,100)

(Notes)

1. The number of employees is the number of full-time employees (excluding those seconded from the Group to outside the Group, but including those seconded from outside the Group to the Group and regular part-time workers). The figures in parentheses ( ) indicate the annual average number of temporary employees (including part-time workers and temporary workers dispatched from staffing agencies, but excluding regular part-time workers), and this is excluded from the figures outside the parentheses. In addition to the above, there are 12 employees seconded to an associate and others.

2. The number of employees described as corporate (common) refers to those belonging to the Administrative Division.

(2) Non-consolidated level

As of March 31, 2023

Number of employees		Average age	Average length of service	Average annual salary
(persons)		(years)	(years)	(yen)
1,361	(383)	41.8	16.3	6,501,049

Segment name	Number of employees (persons)
Industrial plastic parts & components	1,220	(383)
Bedding & furniture	-	(-)
Corporate (common)	141	(-)
Total	1,361	(383)

(Notes)

1. The number of employees is the number of full-time employees (excluding those seconded from the Company to outside the Company, but including those seconded from outside the Company to the Company and regular part-time workers). The figures in parentheses ( ) indicate the annual average number of temporary employees (including part-time workers and temporary workers dispatched from staffing agencies, but excluding regular part-time workers), and this is excluded from the figures outside the parentheses.

In addition to the above, there are 12 employees seconded to an associate and others.

2. Average annual salary includes bonuses and non-standard wages.

3. The number of employees described as corporate (common) refers to those belonging to the Administrative Division.

(3) Status of labor unions Labor unions are not formed.

(4) Percentage of female workers in managerial positions, percentage of male workers taking childcare leave, and wage differences between male and female workers

(i) The Company

Fiscal year ended March 31, 2023
Percentage of female workers in managerial positions (%) (Note 1.)	Percentage of male workers taking childcare leave (%) (Note 2.)	Wage differences between male and female workers (%) (Note 3).			Supplementary explanation
		All workers	Of which, regular workers	Of which, part-timers and fixed-term workers
6.3	43.9	56.4	68.7	42.2	(Note) 4

(Notes)

1. The percentage of female workers in managerial positions (%) was calculated in accordance with the provisions of the "Act on the Promotion of Women's Active Engagement in Professional Life" (Act No. 64 of 2015). However, the definition of managerial positions is based on the Company standards.

2. The percentage of male workers taking childcare leave (%) shows the percentage of male workers taking leave for childcare, etc. stipulated in Article 71-4, Paragraph 1 of the "Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members" (Ordinance of the Ministry of Labor No. 25 of 1991), based on the provisions of "Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave" (Act No. 76 of 1991).

3. The gender wage gap for workers was calculated in accordance with the provisions of the "Act on the Promotion of Women's Active Engagement in Professional Life" (Act No. 64 of 2015). (Standards of the Ministry of Health, Labour and Welfare) There is a disparity in wage per employee due to factors such as a difference in the ratio of male to female managers, but there are no gender differences in the personnel system, compensation system, evaluation system, human resource development, etc.

4. The standard for disparity in annual income is based on the standards provided by the Ministry of Health, Labour and Welfare, and full-time permanent support staff are included in regular workers.

(ii) Consolidated subsidiaries

	Fiscal year ended March 31, 2023
	Percentage of female workers in managerial positions (%)(Note 1.)	Percentage of male workers taking childcare leave (%) (Note 2.)
Name
Nifco Yamagata Inc.	0.0	25.0
Nifco Kumamoto Inc.	0.0	83.3
Simmons Co., Ltd.	7.6	0.0

	Fiscal year ended March 31, 2023
	Wage differences between male and female workers (%) (Note 3)			Supplementary explanation
Name	All workers	Of which, regular workers	Of which, part-timers and fixed-term workers
Nifco Yamagata Inc.	42.9	87.8	64.5	(Note) 4
Nifco Kumamoto Inc.	82.1	77.1	87.1	(Note) 4
Simmons Co., Ltd.	80.3	79.8	38.3	(Note) 4

(Notes)

4. The standard for disparity in annual income is based on the standards provided by the Ministry of Health, Labour and Welfare, and full-time permanent support staff are included in regular workers.

II. Business Overview

1. Management Policies, Management Environment and Issues to Be Addressed

The Group's management policies, management environment and issues to be addressed are as follows.

Forward-looking statements herein are based on the Group's judgments at the end of the fiscal year under review (as of March 31, 2023).

(1) The Company's basic management policy

The underlying basis for the corporate governance of the Company is to be a beneficial presence for all stakeholders, including shareholders and investors, users, business partners, employees, and the local communities.

Last year, the Company newly established the purpose, "Sparking Innovation by fastening small insights with technology for a better world." By fastening "small insights" with technology that comes from being close to customers and sincerely dealing with each of the problems, we have until now been solving these problems through our outstanding product capabilities and global production system, which are our strengths.

Aiming to be a creative company that continues to be widely trusted by society, we will continue to contribute to the resolution of social issues as well as the creation of a comfortable life and a sustainable society by taking on the challenge of creating new businesses such as providing services in addition to product development and by realizing small insights. To do so, we, as a corporation must take action flexibly and appropriately for the socioeconomic environment which changes drastically, by practicing appropriate risk management along with strict compliance. We believe that corporate governance is to strictly practice such a point of view.

Based on the above fundamental policy, the Company regards thorough corporate governance as a priority issue of management, and has been promoting enhancement of the group management.

(2) Objective indicators, etc. to judge the achievement status of management goals such as management strategies

The Company has adopted a rolling medium-term management plan for its three-year plan since FY2021. This is to achieve targets by including the results of each fiscal year and changes in the surrounding environment as appropriate and presenting the most appropriate target values.

The Company aims to maximize its social and corporate value by providing its customers with proposals to create a better society and solve their needs.

		FY2025
	FY2022 results	Targets	Changes from FY2022
Net sales	321.7 billion yen	345.0 billion yen	+7.2%
Operating profit	34.4 billion yen	40.0 billion yen	+16.1%
Operating profit margin	10.7%	11.6%	+0.9%pts
Profit	21.1 billion yen	28.0 billion yen	+32.3%
ROE	10%	13%	+3.0%pts
ROIC	13.1%	15%	+1.9%pts
Operating cash flows (Three-year total)	108.9 billion yen	115.0 billion yen	+5.6%
	1 dollar = 131.6 ven		1 dollar = 125 ven
Exchange rate assumptions	1 euro = 138.1 yen		1 euro = 135 yen

(Note)

Profit refers to profit attributable to owners of parent.

(3) Management environment

The Group develops its business focusing on engineering plastic products, mainly industrial fasteners, and manufactures and sells products mainly related to automobiles and the living environment on a global basis. Engineering plastic products are lightweight, rustproof and excellent in workability, and contribute greatly to weight reduction and cost reduction, especially in the automobile industry. We also supply products in a wide range of fields, from interior and exterior to advanced driver assistance systems (ADAS) and electric vehicles (xEV).

As the automobile industry is expected to undergo significant changes due to advances in technologies such as autonomous driving and the Internet of Things (IoT), the Company will respond flexibly to these changes with its technological and development capabilities.

(4) Business and financial issues to be preferentially addressed

While the automobile industry, a major market for the Group, is expected to continue to grow on a global basis, various geopolitical changes, in addition to the impact of the shortage of semiconductors and other components, are occurring, and customer demands are becoming more diverse and complex.

Therefore, in order for the Group to achieve further progress and growth, it is important to respond appropriately to these issues and needs and improve customer satisfaction on a global basis.

In order to achieve this goal, we are focusing on constructing products that can accurately and promptly respond to the needs of each user and technologies related to the production process, improving working styles, developing human assets, building a Nifco's job-based personnel system, and building information systems that take into account the security and the promotion of IT utilization. For the time being, we are also working to smoothly launch global strategic vehicles and multilateral projects, and to strengthen the quality assurance systems of global companies.

In addition, the Company respects the intellectual property rights of other companies and conducts patent investigations, etc. from the development stage to ensure that its products do not infringe the intellectual property rights of other companies, thereby striving to avoid infringement of other companies' intellectual property rights and reducing the litigation risk related to intellectual property. During the fiscal year under review, there were no lawsuits filed by third parties concerning intellectual property rights.

2. Sustainability Concept and Initiatives

(1) Sustainability concept

We want to be a seamlessly growing global company with unique positioning and a strong presence. To this end, it is important to respond to climate change through business activities and to be a company that utilizes human assets, which are referred to as human capital. We will promote this philosophy to each of our Group companies through the following initiatives.

Forward-looking statements herein are based on the Company's judgments as of the end of the fiscal year under review (as of March 31, 2023 ).

(2) Sustainability initiatives including those for addressing climate change

(i) Governance

The Company's Board of Directors deliberates on and sets sustainability policies, strategies, plans, and measures, including those for addressing climate change, as well as targets and indicators, and it shares the progress and results to determine and promote improvements and new initiatives. In addition, the Sustainability Committee has been established as an advisory body to the Board of Directors. The Committee advises and makes recommendations to the Board of Directors on matters related to sustainability. Sustainability-related proposals approved by the Board of Directors are communicated directly or through the Management Committee to each of our business units and Group companies and are reflected in their respective management plans and business operations. Depending on the content of such proposals, we also request cooperation from our business partners.

(ii) Strategy

We have conducted an analytical assessment of the business risks and opportunities arising from climate change against projecting changes in the environment from 2021, to 2040 using a scenario analysis approach based on internationally recommended guidelines. Based on those results, we then developed policies to address each risk and opportunity.

For details, refer to Nifco Report from page 24 onwards.

https://www.nifco.com/en/csr/sustainability/sustainabilityreport/NifcoReport_2022_en_w.pdf

(iii) Risk management

General sustainability matters, including those related to climate change, are directed and reported through the Board of Directors to the Risk Management Committee, which is responsible for managing the Group's risk of losses. The Risk Management Committee considers and manages the implementation of proactive preventive measures in response to the risks indicated and reported to it.

Depending on the risk, the Board of Directors may issue instructions directly or through the Management Committee to the relevant executive officers.

(iv) Indicators and targets

As a participating company in the SBT (Science Based Targets) target-setting support program, we have set a mediumterm target of a 2°C scenario, but we are currently considering a new CO ₂ emission reduction target based on the recognition that it is important to move to the 1.5°C scenario, which is the latest trend. CO ₂ emissions for recent years on a stand-alone basis in Japan are as follows.

Scope 1 and Scope 2 (Domestic and non-consolidated)

Scope 3 (Domestic and non-consolidated)

For Scope 1 and Scope 2 CO ₂ emissions, including domestic Group companies, please refer to Nifco Report page 42.

https://www.nifco.com/en/csr/sustainabilitv/sustainabilityreport/NifcoReport_2022_en_w.pdf

(3) Sustainability initiatives related to human capital

(i) Strategy

In terms of human capital, we invest our management resources primarily in growth areas, which means we develop the capabilities and skills of our employees, thereby achieving sustainable business growth, improving productivity and maximizing added value. First, regarding human assets, we have clearly set out the requirements and guidelines for the action of human assets able to excel at a global level based on the keywords "challenge," "transformation," "future," "cooperation," and "overcoming." Our employee training and development systems have been established with the aim of cultivating these kinds of human assets, and we currently operate and implement the systems in four categories-stratified, self-improvement, selective development, and company-wide-while listening to employee feedback and taking the changing times into consideration. We are also promoting workstyle reform with the aim of creating an environment where employees can work cheerfully. Specifically, we are striving to reduce total working hours, expanding the flextime system to free our employees from time management and increase flexibility, and introducing a telework system so they can choose where they work. With these new working styles and the enhanced leave system, we will strongly promote the sustainable development of our business while maintaining high levels of engagement.

(ii) Indicators and targets

Regarding the results of the fiscal year under review related to the indicators for human capital, please refer to "(4) Percentage of female workers in managerial positions, percentage of male workers taking childcare leave, and wage differences between male and female workers" in "5. Status of Employees" in "I. Company Overview." In the Company, in accordance with the Nifco Group Charter of Corporate Behavior and the Nifco Group Human Rights Policy, a dedicated diversity promotion unit is striving to create workplaces where employees of all attributes can achieve their full potential. The percentage of female workers in managerial positions was 6.3% in the fiscal year under review, and we are promoting training activities in each workplace with the target of achieving 10% in FY2027.

The percentage of male workers taking childcare leave was 43.9%. We will prepare the working environment in the workplace so that all male employees can take childcare leave as soon as possible. In addition, the wage differences between male and female workers was 56.4% in the fiscal year under review (74.5% excluding fixed-term employees). Although there is no difference in treatment between men and women within each grade system, the gap as a whole was 56.4% due to differences in the ratio of men to women among regular employees in managerial positions and the ratio of men to women among fixed-term employees. In the future, we intend to reduce the gap by promoting the active engagement of women and increasing the number of female managers.

3. Business Risks

Among the risks that the Group should keep in mind when conducting its business, it believes that the following are major matters that may have a significant impact on investors'judgment.

Forward-looking statements herein are based on the Group's judgments as of the filing date of the Annual Securities Report (June 22, 2023).

(1) Economic conditions

In the Group, the ratio of sales to automobile manufacturers in various countries, particularly Japanese automobile manufacturers, is at a high level, and demand for products for these automobile manufacturers is affected by economic conditions. However, among Japan, the United States and China, which are major markets, sales of automobiles in Japan are on a long-term declining trend. Given this factor, the Group is globalizing its operations.

However, if the economic conditions of the United States or China falter, it is expected that its business performance and financial condition will be adversely affected.

The Bedding & furniture business is operated only in Japan and Asia and is therefore subject to the economic conditions of those regions.

(2) Price competition risks

Although the Group is making efforts to set proper product prices for the plastic molded products, its main business, there are increasing requests for cost reductions from automobile manufacturers, its main business partners.

Therefore, if the Group is forced to face more intense product price competition than expected with other companies, its business performance and financial condition may be adversely affected.

(3) Risks associated with price fluctuations and procurement of raw materials

The prices of raw materials used by the Group are revised in line with changes in crude oil and naphtha prices and others. Accordingly, if the rising prices of these raw materials are not sufficiently reflected in product prices or if the conversion to cheaper raw materials does not progress, the Group's business performance and financial condition may be adversely affected. In addition, if it is unable to procure raw materials as planned due to unforeseen accidents at raw material suppliers or earthquakes and other natural disasters, the Group's business performance and financial condition may be adversely affected.

(4) Foreign exchange fluctuation risks

Although exports to overseas markets are small, the Group's overseas sales ratio has been increasing year by year due to local sales of products produced by overseas subsidiaries in line with the progress of globalization.

Therefore, the values in the financial statements of overseas subsidiaries denominated in local currencies are translated into Japanese currency in the consolidated financial statements, and changes in exchange rates affect the consolidated financial statements.

(5) Risks associated with poor product quality

The Group conducts production in accordance with strict quality control standards. However, if a defective product is distributed to the market for any reason and the Group is sued for product liability, not only will it cost a great deal of money to compensate for the damage and to respond to it, but also the trust of users in the Group will decline, and as a result, its business performance and financial condition may be adversely affected.

(6) Country risks

While the Group has expanded its overseas bases so as to respond to the globalization of its users, mainly Japanese automobile manufacturers, and respond appropriately and promptly to their needs, in the countries and regions where its overseas bases are located, it may become difficult to conduct business due to social turmoil caused by drastic changes in policies, laws and taxation systems, unpredictable political and economic instability, the outbreak of terrorism, war and conflict, and the spread of infectious diseases.

Given this factor, the Group is proceeding with the development of its bases to minimize the uneven distribution of bases in specific countries and regions to the extent possible. However, in the event of such a situation, the Group's business performance and financial condition may be adversely affected.

(7) Natural disaster risks such as earthquakes

In Japan, the Group has three production subsidiaries in Yamagata, Tochigi and Kumamoto, in addition to two plants in the Company (Sagamihara and Nagoya) for automobile manufacturers, and manufactures beds at the Fuji-Oyama Plant.

On the other hand, overseas, we are rapidly expanding and diversifying our production bases.

With natural disasters occurring frequently not only in Japan but also in other parts of the world, even in the event of a disaster, in order to minimize damage, we are promoting earthquake resistance at each plant, introducing a system to confirm the safety of all employees and working on a business continuity plan to build a recovery system.

However, if natural disasters such as earthquakes and storms or unforeseen accidents at the Group's production bases cause any damage to production facilities, delay or stop manufacture and sales of products, or paralyze headquarters functions, the Group's business performance and financial condition may be adversely affected.

If a natural disaster newly occurs in the future, the procurement of resin materials may be hindered, and "(3) risks associated with fluctuations and procurement of raw materials" may become apparent or "(1) economic conditions" may deteriorate due to supply chain disruptions or reduced power supply capacity.

(8) Impairment risks for non-current assets

Property, plant and equipment used by the Group is exposed to the potential impairment risk arising from a decline in the value of assets.

In particular, at the sites in the plastic business for German automobiles in the U.S.A, the risk of an impairment loss is considered relatively high due to the deterioration of the business environment, and the occurrence of an impairment loss may have an impact on the consolidated financial statements.

(9) Impairment risks for subsidiaries stocks

The subsidiaries' stocks held by the Group are evaluated at cost. However, if the actual value of stocks with no market value declines significantly due to a deterioration in the financial position, the Company may be forced to recognize impairment losses on the subsidiaries' stocks, which may have an impact on its non-consolidated operating results.

In addition to these risks, we cannot deny the possibility that risks which are unforeseeable under normal circumstances may suddenly materialize as business activities expand or change. Therefore, led by the Risk Management Committee, we will strive to avoid or reduce the occurrence of such unforeseeable risks, or take appropriate measures and minimize losses in the event of such unforeseeable risks.

4. Management's Analysis of Financial Position, Operating Results and Cash Flows

(1) Overview of Operating Results, etc.

The following is an overview of the financial position, operating results and cash flows of the Group (the Company, consolidated subsidiaries and an associate accounted for by the equity method) (hereinafter referred to as "Operating Results, etc.") for the fiscal year under review.

(i) Financial position and operating results

In the Japanese economy for the fiscal year under review, business confidence has been polarized: in the non-manufacturing sector, business confidence in retail and other consumption-related sectors improved on the back of a recovery in personal consumption and inbound demand, while in the manufacturing sector, business confidence in the materials sector was sluggish due to higher raw material prices, and business confidence in the electrical machinery sector also deteriorated due to a decline in global demand for semiconductors. Looking overseas, in the Chinese economy, both domestic and external demand have been sluggish, with exports declining against the backdrop of a slowdown in the U.S. and European economies and a decline in plant utilization due to activity restrictions, in addition to the strengthening of zero-COVID policies by the Chinese government in the fall of 2022. With regard to the European economy, inflationary pressures on both goods and services are persisting and pushing down the economy, as wages are rising due to the tight labor market conditions, and higher production costs caused by higher resource prices and other factors are transferred to sales prices. In the United States, the easing of supply constraints due to improvements in product lead times has been a supportive factor for business activities, while new orders turned to a downward trend reflecting a decline in demand due to monetary tightening and other factors, and the goods-producing sectors such as manufacturing and construction have remained week. Thus, the global economy is experiencing inflation against the backdrop of soaring international commodity prices and an increase in labor costs throughout the economy. Amid rapid monetary tightening and restrictive policies that put downward pressure on economic activity to restore price stability, the outlook remains uncertain.

Under these circumstances, consolidated net sales for the fiscal year under review increased 13.4% year-on-year to 321,771 million yen. Operating profit grew 12.8% year-on-year to 34,439 million yen. Ordinary profit was up 12.7% year-on-year to 37,876 million yen, and profit attributable to owners of parent decreased 7.8% year-on-year to 21,170 million yen.

Total assets rose 26,082 million yen year-on-year to 359,150 million yen. Total liabilities increased 830 million yen year- on-year to 133,023 million yen. Total net assets grew 25,252 million yen year-on-year to 226,127 million yen. As a result, the equity ratio was 62.2% and net assets per share were 2,237.06 yen.

The operating results of each segment are as follows.

Net sales in each segment are to external customers.

Industrial plastic parts & components

Net sales in the Industrial plastic parts & components business were up 13.7% year-on-year to 288,734 million yen. Segment profit increased 12.9% year-on-year to 34,050 million yen.

Bedding & furniture

Net sales in the Bedding & furniture business rose 11.1% year-on-year to 33,037 million yen. Segment profit grew 5.8% year-on-year to 5,885 million yen.

(ii) Cash Flows

(Cash flows from operating activities)

Net cash provided by operating activities was 37,261 million yen, an increase of 5,517 million yen compared with 31,743 million yen provided in the previous fiscal year. This was mainly due to a change from an increase to a decrease in inventories.

(Cash flows from investing activities)

Net cash used in investing activities was 11,530 million yen, a decrease of 2,051 million yen compared with 9,479 million yen used in the previous fiscal year. This was mainly due to the fact that payments into time deposits exceeded proceeds from withdrawal of time deposits.

(Cash flows from financing activities)

Net cash used in financing activities was 17,418 million yen, a decrease of 3,901 million yen compared with 13,516 million yen used in the previous fiscal year. This was mainly due to a decrease in proceeds from short-term borrowings.

As a result of the above, cash and cash equivalents at the end of the fiscal year under review increased 12,241 million yen from the end of the previous fiscal year to 122,233 million yen.

(iii) Results of production, orders received and sales

a. Production results

A breakdown of production results by segment for the fiscal year under review is given below.

Segment name	Fiscal year ended March 31, 2023	Year-on-year change (%)
Industrial plastic parts & components (millions of yen)	204,596	110.5
Bedding & furniture (millions of yen)	11,627	109.8
Total (millions of yen)	216,224	110.5

(Notes)

Intersegment transactions are eliminated.

b. Product purchase results

A breakdown of production purchase results by segment for the fiscal year under review is given below.

Segment name	Fiscal year ended March 31, 2023	Year-on-year change (%)
Industrial plastic parts & components (millions of yen)	13,876	92.2
Bedding & furniture (millions of yen)	2,935	114.6
Total (millions of yen)	16,812	95.5

(Notes)

Intersegment transactions are eliminated.

c. Results of orders received

As the period between the receipt of orders and shipment is extremely short, the production activity of the Company and its consolidated subsidiaries is based on the estimated demand in reference to certain firm orders and past production results, etc.

d. Sales results

A breakdown of sales results by segment for the fiscal year under review is given below.

Segment name	Fiscal year ended March 31, 2023	Year-on-year change (%)
Industrial plastic parts & components (millions of yen)	288,734	113.7
Bedding & furniture (millions of yen)	33,037	111.1
Total (millions of yen)	321,771	113.4

(Notes)

Intersegment transactions are eliminated.

(2) Analysis and discussion regarding Operating Results, etc. from a management viewpoint

Recognition, analysis and discussion regarding the Group's Operating Results, etc. from a management viewpoint are provided below.

Forward-looking statements herein are based on judgments as of the end of the fiscal year under review.

(i) Significant accounting estimates and assumptions used in such estimates

The Company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in Japan. The preparation of the consolidated financial statements requires estimates and assumptions that affect the assets, liabilities, contingent assets and contingent liabilities at the closing date and the income and expenses for the accounting period. As a result, these estimates may differ from actual results due to their inherent uncertainties. The Company believes that its estimates and assumptions in the application of significant accounting policies have a material impact on its consolidated financial statements.

a Inventories

The Group records a write-down for deterioration in profitability based on estimated future demand for inventories and market conditions. If actual future demand or market conditions become worse than estimated, additional write-downs may be required.

b Impairment of investments

The Group holds stocks of certain customers to develop and maintain long-term business relationships and stocks as investment of surplus funds and others. These stocks, etc. include those with highly volatile market prices and those of private companies whose market prices are difficult to determine. The Group recognizes impairment losses in principle on those with market prices if the decline in investment cost is 50% or more and those with no market prices if the net assets decrease by 50% or more due to a deterioration in the financial position of the company. If the decline is roughly between 30% and 50%, the Group recognizes impairment losses with respect to the amount deemed to be necessary in consideration of the financial significance and recoverability and other factors. If losses not reflected in the current carrying amount occur or the carrying amount becomes unrecoverable due to future market deterioration or poor performance of the investee, it may be necessary to record valuation losses.

c Retirement benefit expenses

Employee retirement benefit expenses and obligations are calculated based on actuarial assumptions. These assumptions include discount rates, future salary levels, retirement rates, mortality rates and rates of return on plan assets. In the pension plans of the parent company and certain domestic subsidiaries, the discount rates are calculated based on the market yield of Japanese government bonds using a single weighted-average discount rate that reflects the expected payment period and the amount for each expected payment period. The expected rates of return are calculated based on a weighted average of the long-term expected rates of return for each type of asset in which plan assets are invested. If actual results differ from or change from the assumptions, the effects will be cumulative and recognized on a regular basis into the future and will generally affect expenses and obligations recognized in future periods. Declines in discount rates and rates of return on plan assets in recent years have a negative impact on the Group's pension costs. Amortization of unrecognized actuarial gains and losses and prior service costs resulting from changes in plans, etc. forms part of pension costs, and the effects of changes in assumptions and differences from actual results are recognized as expenses on a regular basis.

d Impairment of property, plant and equipment

The Group classifies business assets for internal use into groups for each office or consolidated subsidiary, and real estate for rent, idle assets and assets to be sold into groups for each individual property.

In the fiscal year under review, the recoverable amount was estimated based on the judgment that there are indications of impairment of non-current assets in a Korean business site in China included in the Industrial plastic parts & components business due to the significant deterioration in the management environment resulting from the impact of the restructuring of the production system in China by a Korean automobile manufacturer, one of the customers. As a result of the recoverability test for the non-current assets, the book value of the non-current assets was determined to be uncollectible; therefore, the difference between the book value and the fair value of the non-current assets is recognized as an impairment loss. In addition, for a German business site in the United States included in the Industrial plastic parts & components business, the recoverable amount was estimated based on the judgment that there are indications of impairment of non-current assets due to the significant deterioration in the profitability caused by a delay in reflecting higher personnel expenses, etc. in product prices and a slow improvement in the production yield. As a result of the recoverability test for the non-current assets, the book value of the non-current assets was determined to be uncollectible; therefore, the difference between the book value and the fair value of the non-current assets is recognized as an impairment loss.

The fair value used to measure impairment losses was estimated by calculating based on the appraisal value by an external expert, and the selection of the valuation method and assumptions for calculating the appraisal value has a significant impact on the calculation results.

(ii) Recognition, analysis and discussion regarding Operating Results, etc. for the fiscal year under review

(1) Operating Results, etc. for the fiscal year under review

As for automobile manufacturers, which are major customers of the Group, both unit production and unit sales in the Japanese market were up year-on-year in the fiscal year under review. In overseas markets, both unit production and unit sales were down year-on-year in the European market, while in the U.S. market, unit sales were down but unit production was up year-on-year. In the Chinese and Indian markets, both unit production and unit sales were significantly up year-on- year.

Under these circumstances, consolidated net sales for the fiscal year under review increased 13.4% year-on-year to 321,771 million yen. Operating profit was up 12.8% year-on-year to 34,439 million yen as the increase in gross profit driven by higher sales outweighed the increase in selling, general and administrative expenses. Ordinary profit grew 12.7% year-on- year to 37,876 million yen due to foreign exchange gains resulting from the depreciation of the yen. Extraordinary losses of 2,378 million yen were recorded due to the recognition of impairment losses at subsidiaries in the U.S. and China, and the business restructuring expenses at subsidiaries in China. As a result, profit attributable to owners of parent came to 21,170 million yen, which is down 7.8% year-on-year.

Total assets rose 26,082 million yen year-on-year to 359,150 million yen. This was mainly due to an increase of 3,393 million yen in accounts receivable-trade, an increase of 1,591 million yen in property, plant and equipment, and an increase of 1,389 million yen in retirement benefit assets. This was also due to an increase of 16,848 million yen in cash and deposits.

Total liabilities increased 830 million yen year-on-year to 133,023 million yen. This was mainly due to an increase of 2,817 million yen in notes and accounts payable-trade.

Total net assets were up 25,252 million yen year-on-year to 226,127 million yen. This was mainly due to an increase of 14,928 million yen in retained earnings and an increase of 10,940 million yen in foreign currency translation adjustment resulting from the depreciation of the yen.

As a result of the above, the equity ratio rose by 2.7 percentage points year-on-year to 62.2% and net assets per share were 2,237.06 yen.

(2) Factors that have a significant impact on operating results

a Economic conditions

In the Group, the ratio of sales to automobile manufacturers, particularly major Japanese automobile manufacturers, is at a high level and demand for products for these Japanese automobile manufacturers may be affected by trends in the global economy, particularly the economic conditions in Japan, the United States and China, which are major markets, and may have a significant impact on the Group's operating results.

b Steep rise in crude oil and naphtha prices

If the price of crude oil and petroleum products such as naphtha rises and the rise persists over time, the rise in raw material prices may affect the Group's operating results.

c Price reduction requests from business partners

The Group is making efforts to reduce production costs in response to requests for price reductions from business partners. However, if requests for price reductions are stronger than expected, its operating results may be significantly affected.

(3) Capital resources and funding liquidity

The Group's working capital is primarily for the purchase of raw materials and components used in the manufacturing process, as well as manufacturing expenses, selling, general and administrative expenses, and other operating expenses. The main operating expenses are personnel expenses, logistics costs, and research and development expenses. These necessary funds are covered by internal funds generated from profits.

Capital investments are made with an emphasis on profitability and cash flows. The Group makes it a rule that these capital expenditures are in principle funded by allocating depreciation and part of the internal funds generated from profits and that active capital investments in Japan and overseas are procured through the issuance of corporate bonds and external borrowing depending on the situation.

The Group procures working capital and ordinary capital investment funds through its sound financial position and ability to generate cash flows from operating activities, and procures funds for investments for future growth and M&As at low interest rates and over a long term.

This enables the Group to diversify its procurement methods and procure long-term stable funds at low cost. Further, in combination with the effects of capital cost reductions and capital investment, we expect our financial position to remain stable.

(4) Operating Results, etc. by segment

a. Industrial plastic parts & components

[For domestic automobile industry]

Domestic automobile production fell significantly below the initial plan, particularly in the first quarter, due to production cuts caused by semiconductor shortages and supply chain stagnation. Although production recovered slightly in the second quarter, it was insufficient to achieve the plan, and in the third quarter, production fell below the plan due to the impact of the resurgence of CO VID-19 cases in China.

[For overseas automobile industry]

Overseas, the results were highly varied by region and customer. In Europe and the United States, both sales and profits were significantly lower than planned due to a shortage of semiconductors and rising costs of raw materials, labor, and logistics at all sites except for Korean sites. In particular, the business for German OEMs experienced operational problems, which led to an increase in losses. On the other hand, the ASEAN region was largely unaffected by these factors, and business performance remained strong supported by solid demand from Japanese OEMs. In China, business performance declined significantly at the end of the year due to the impact of the lifting of zero-COVID policy. When looking at the full year, however, business performance remained healthy. The business for Korean OEMs continued to perform well worldwide, excluding China, and both sales and profits exceeded plans, particularly in Europe, North America, and India. In the current fiscal year, we will introduce the overseas regional control system and focus on rebuilding our bases in Europe and the U.S. by regional leadership. We will also promote the consolidation and closure of unprofitable Korean bases in China to improve the performance of our overseas business and further enhance profitability.

[For other industries]

In the housing and living field, we saw a decrease in production related to housing facilities due to the impact of lockdowns in China and soaring prices and a shortage of wood (called "the wood shock" in Japan), and business performance was worse than originally planned. On the other hand, in the sports and outdoor activities field, sales increased year-on-year due to a strong demand for running-related shoes and clothing components driven by an increase in health consciousness, particularly in European countries and the United States.

As a result of the above, net sales in the Industrial plastic parts & components business increased 13.7% year-on-year to 288,734 million yen. Segment profit grew 12.9% year-on-year to 34,050 million yen.

b. Bedding & furniture

In the Bedding & furniture business, sales to retail stores grew steadily in Japan, but it could not absorb the increase in costs caused by higher raw materials prices and the depreciation of the yen. With these factors, sales increased but profit decreased. On the other hand, in China, despite the severe business environment caused by the zero-COVID policy, we managed to avoid a significant decline in performance, and in Taiwan and Singapore, sales to the wholesale sector, retail stores and hotels grew steadily. With these factors and the impact of the depreciation of the yen, both overseas sales and profits increased. As a result, net sales in the Bedding & furniture business increased 11.1% year-on-year to 33,037 million yen. Segment profit grew 5.8% year-on-year to 5,885 million yen.

5. Important Business Contracts, etc.

(1) Important technical contracts

(i) Technology alliance

The Company

Original contract date	Counterparty	Country	Contract details	Contract period
December 21, 1966	Illinois Tool Works Inc.	U.S.A.	Plastic buckles	Until August 27, 2023

(ii) Technology licensing

The Company

Original contract date	Counterparty	Country	Contract details	Contract period
November 24, 1982	Nifco Taiwan Corporation	Taiwan	Manufacturing technology of plastic buckles and industrial fasteners	Until December 31, 2025
February 7, 1985	Nifco Korea Inc.	South Korea	Manufacturing technology of plastic buckles and industrial fasteners	Until December 31, 2024
November 23, 1988	Union Nifco Co., Ltd.	Thailand	Manufacturing technology of plastic buckles and fastener assemblies composed of plastic and metal	Until December 31, 2027
November 19, 1990	Nifco Manufacturing (Malaysia) Sdn. Bhd.	Malaysia	Manufacturing technology of plastic buckles and industrial fasteners	Until December 31, 2024
November 15, 1993	Nifco (HK) Ltd.	Hong Kong	Manufacturing technology of plastic buckles and fastener assemblies composed of plastic and metal	Until December 31, 2024
December 18, 2000	Nifco U.K. Ltd.	UK	Manufacturing technology of industrial plastic parts and assemblies containing parts and materials other than plastic	Until December 31, 2024
December 18, 2000	Nifco America Corporation	U.S.A.	Manufacturing technology of industrial plastic parts and assemblies containing parts and materials other than plastic	Until December 31, 2024
March 31, 2003	Shanghai Nifco Plastic Manufacturer Co., Ltd.	China	Manufacturing technology of plastic and metal parts and finished products having a fixing function, composite parts of resin parts and metal parts, buckles as well as molds, etc. for these parts and finished products, etc.	Until June 30, 2025
August 25, 2003	Dongguan Nifco Co., Ltd.	China	Manufacturing technology of plastic and metal parts and finished products having a fixing function, composite parts of resin parts and metal parts, buckles as well as molds, etc. for these parts and finished products, etc.	Until June 30, 2025
March 1, 2004	Nifco (Thailand) Co.,Ltd.	Thailand	Manufacturing technology of buckles, industrial plastic parts, assemblies containing parts and materials other than plastic as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2024
August 26, 2004	Tifco (Dongguan) Co., Ltd.	China	Manufacturing technology of plastic and metal parts and finished products having a fixing function, composite parts of resin parts and metal parts, buckles as well as molds, etc. for these parts and finished products, etc.	Until June 30, 2027
Original contract date	Counterparty	Country	Contract details	Contract period
November 18, 2005	Beijing Nifco Co., Ltd.	China	Manufacturing technology of plastic and metal parts and finished products having a fixing function, composite parts of resin parts and metal parts, buckles as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2026
September 1,2006	Nifco Poland Sp.z o.o.	Poland	Manufacturing technology of industrial plastic parts, assemblies containing parts and materials other than plastic as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2024
November 1,2008	Nifco Vietnam Ltd.	Vietnam	Manufacturing technology of industrial plastic parts, assemblies containing parts and materials other than plastic as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2023
January 20, 2010	Nifco (Tianjin) Co., Ltd.	China	Manufacturing technology of plastic and metal parts and finished products having a fixing function, composite parts of resin parts and metal parts, buckles as well as molds, etc. for these parts and finished products, etc.	Until June 30, 2025
August 1, 2010	Nifco India Private Ltd.	India	Manufacturing technology of industrial plastic parts, assemblies containing parts and materials other than plastic as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2024
October 1, 2010	Nifco (Hubei) Co., Ltd.	China	Manufacturing technology of plastic and metal parts and finished products having a fixing function, composite parts of resin parts and metal parts, buckles as well as molds, etc. for these parts and finished products, etc.	Until June 30, 2025
January 1, 2011	Nifco Korea USA Inc.	U.S.A.	Manufacturing technology of buckles, industrial plastic parts, assemblies containing parts and materials other than plastic as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2025
March 1, 2011	Nifco (Jiangsu) Co., Ltd.	China	Manufacturing technology of plastic and metal parts and finished products having a fixing function, composite parts of resin parts and metal parts, buckles as well as molds, etc. for these parts and finished products, etc.	Until June 30, 2025
October 1, 2012	Nifco South India Manufacturing Private Ltd.	India	Manufacturing technology of buckles, industrial plastic parts, assemblies containing parts and materials other than plastic as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2027
October 1, 2012	Nifco Yancheng Co., Ltd.	China	Manufacturing technology of plastic and metal parts and finished products having a fixing function, composite parts of resin parts and metal parts, buckles as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2026
January 1, 2013	PT.Nifco Indonesia	Indonesia	Manufacturing technology of buckles, industrial plastic parts, assemblies containing parts and materials other than plastic as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2024
January 1, 2013	Nifco Korea Poland Sp.z o.o.	Poland	Manufacturing technology of industrial plastic parts and assemblies containing parts and materials other than plastic	Until December 31, 2027
January 1, 2014	Nifco Central Mexico S.de R.L.de C.V.	Mexico	Manufacturing technology of buckles, industrial plastic parts, assemblies containing parts and materials other than plastic as well as molds, etc. for these parts and finished products, etc.	Until December 31, 2024

(2) Important management contract

(i) The Company

Original contract date	Counterparty	Country	Contract details	Contract period
August 23, 2001	Nifco Taiwan Corporation	Taiwan	Joint venture agreement for the manufacture and sale of plastic buckles and industrial fasteners (for automobiles and home appliances) in China	During the lifetime of the joint venture (Tifco (Dongguan) Co., Ltd.)
December 9, 2008	Daimler	Germany	License agreement for the console box patent	Until October 5, 2024

(ii) Consolidated subsidiaries

Simmons Co., Ltd.

Original contract date	Counterparty	Country	Contract details	Contract period
June 30, 1987	Dreamwell Limited (formerly Simmons USA Corporation)	U.S.A.	Right for the manufacture and sale, etc. of technology, licensed trademarks, patents and licensed products in the licensed territories as well as exclusive license for the use of sales information on the marketing and import, etc. of licensed products in the licensed territories	During the lifetime of the company

6. Research and Development Activities

The total amount of research and development expenses for the fiscal year under review was 3,702 million yen, the majority of which was 3,683 million yen in the Industrial plastic parts & components business. The Group is promoting the development of new products for each major market and aggressively entering related markets. With the aim of promoting rapid and specialized development activities, we have established development divisions for each product group, including fasteners, which are our core products, and for each area of the respective main market. In the face of advances in front-loading development and higher product quality, we will seek to have logical development by linking digital analysis and evaluation analysis and globally promote solutions to customers' problems. In other areas, we will also promote the development of products combined with services. In manufacturing, we are working to further improve start-up quality by strengthening the Production Engineering Division, which optimizes the entire process from material input to customer line input. We will continue to enhance the trust of our customers and solidify our position as a global supplier.

(1) Industrial plastic parts & components

(i) Automobile field:

We are concentrating our development resources on products in the fields of "environment," "safety" and "comfort," which are universal themes in the industry. In the area of the environment, we are developing and mass-producing a number of components including ones that improve fuel efficiency by converting metal into resin, aerodynamic-related products, and powertrain-related components used in advanced environmentally friendly vehicles. In the area of safety, we are engaged in many mass- produced products related to obstacle-detection sensors, and at the same time, we are advancing development to enhance these products. In the area of comfort, we are developing and mass-producing quiet components and components that enhance the comfort of the cabin. At a time of great transformation that is said to occur once every 100 years, the Group sees a change as an opportunity and is working to provide products with universal value to customers around the world by evolving the strengths it has cultivated.

(ii) Other

In recognition of our efforts in ICT solutions using environmentally friendly "battery-less sensor devices," we concluded a "Comprehensive Partnership Agreement for Resolving Regional Issues" with Yokosuka City in January 2023. The terms of the agreement are as follows: 1. ICT for the schools, etc. in the city, 2. human asset development in cooperation with the schools, etc. in the city, 3. productivity improvement of the businesses in the city, 4. revitalization of Yokosuka Research Park, and 5. other, including resolution of local issues and improvement of citizen services. First of all, we started a demonstration experiment with each school with the aim of introducing a package to elementary and junior high schools in the city, which will enable schools to save electricity and reduce the number of person-hours of patrolling by teachers. In addition, in December 2022, we signed a memorandum on human asset development in the manufacturing sector with the National Skill Development Corporation (NSDC) of India, which approved of the themes of "Energy saving" and "Schools." We are also promoting the initiative with a view to launching into school-related activities in India.

(2) Bedding & furniture

In order to propose healthy and comfortable sleep to the market, we conduct research for product proposals that include not only scientific analysis but also sensitivity and sensation. We are also focusing on the development of multifunctional beds that can control various functions and movements in order to make proposals to the senior market with growth potential.

III. Status of Facilities

1. Overview of Capital Investment, etc.

The Company and its consolidated subsidiaries made capital investments of 8,872 million yen in the fiscal year under review.

In the Industrial plastic parts & components business, we invested a total of 2,445 million yen in mold facilities and others in Japan to meet new orders from domestic automobile manufacturers.

In the United States, Nifco America Corporation invested 554 million yen mainly in molding machines.

In the Asian region excluding Japan, Nifco (HK) Ltd. and its consolidated subsidiaries invested a total of 3,881 million yen, including a total of 1,086 million yen in mold facilities and molding machines, and established a system to produce and sell high- value-added products globally to customers of Japanese and non-Japanese automobile manufacturers, and home appliances, OA equipment and apparel manufacturers.

2. Status of Major Facilities

The major facilities of the Company and its consolidated subsidiaries are as follows.

(1) The Company

As of March 31, 2023

			Book value
Facility name (Location)	Segment name	Facility description	Buildings and structures	Machinery, equipment and vehicles (millions of yen)
			(millions of yen)

Nifco Technology Development Centre	Industrial plastic parts & components	Research and development facility
(Yokosuka-shi, Kanagawa)			3,159	242
Head Office	Industrial plastic parts & components	Facility for technology development and management for industrial plastic fasteners
(Yokosuka-shi, Kanagawa)			1,184	47
Nagoya Office	Industrial plastic parts & components	Facility for production of industrial plastic fasteners
(Toyota City, Aichi)			4,626	1,129
Sagamihara Office (Chuo-ku, Sagamihara-shi, Kanagawa)	Industrial plastic parts & components	Facility for production of industrial plastic fasteners
			2,230	1,747

	Book value
Facility name (Location)	Land	Molds	Software	Other	Total	Number of employees
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)	millions of yen)	(persons)
	(m ² )
Nifco Technology Development Centre	1,269					193
(Yokosuka-shi, Kanagawa)	(13,721)	5	48	56	4,781	(29)
Head Office	2,185					260
(Yokosuka-shi, Kanagawa)	(29,413)	18	72	98	3,606	(43)
Nagoya Office	1,140					480
(Toyota City, Aichi)	(33,297)	158	12	414	7,482	(168)
Sagamihara Office (Chuo-ku, Sagamihara-shi, Kanagawa)	2,049					221
	(33,526)	188	28	175	6,419	(107)

(Notes)

1. "Other"in the book value is tools, furniture and fixtures, and leased assets, and does not include construction in progress.

2. The figures in parentheses () in the "Number of employees" column indicate the average number of temporary employees excluded from the figures outside the parentheses.

3. There are no major facilities currently not in operation.

(2) Domestic subsidiaries

As of March 31, 2023

				Book value
Company name	Facility name (Location)	Segment name	Facility description	Buildings and structures
				(millions of yen)

Simmons Co., Ltd.	Fuji-OyamaPlant(Oyama-cho,Sunto-gun, Shizuoka)	Bedding & furniture	Furniture manufacturing equipment and equipment and distribution center	2,599

Nifco Yamagata Inc.	Yamagata-shi, Yamagata	Industrial plastic parts & components	Facility for production of industrial plastic fasteners	1,063

				[1,034]

Nifco Kumamoto Inc.	Kikuchi-shi, Kumamoto and others	Industrial plastic parts & components	Facility for production of industrial plastic fasteners	3,503

	Book value
Company name	Machinery, equipment and vehicles	Land	Other	Total	Number of employees
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)	(persons)
		(m ² )
Simmons Co., Ltd.	187	1,663	37	4,488	217
		(56,442)			(0)
Nifco Yamagata Inc.	536	1,405	105	3,110	133
		(56,384)
	[-]	[1,405]	[50]	[2,490]	(243)
		([56,384])
Nifco Kumamoto Inc.	595	693	90	4,882	173
		(86,176)			(196)

(Notes)

1. "Other" in the book value is tools, furniture and fixtures, molds, leased assets and software, and does not include construction in progress.

2. The figures in parentheses ( ) in the "Number of employees" column indicate the average number of temporary employees excluded from the figures outside the parentheses.

3. There are no major facilities currently not in operation.

4. The figures in square brackets [ ] indicate those leased from the Company included in the figures outside the brackets.

(3) Overseas subsidiaries

As of March 31, 2023

				Rook value
Company name	Facility name (Location)	Segment name	Facility description	Buildings and structures
				(millions of yen)

Nifco Korea Inc.	Asan Plant (Head Office) and other (Asan-si, South Korea, etc.)	Industrial plastic parts & components	Facility for production and management for industrial plastic fasteners	3,673

Nifco America Corporation	Head Office, Ohio Plant and others (Ohio, U.S.A. and others)	Industrial plastic parts & components	Facility for production and management for industrial plastic fasteners	3,726

Nifco Germany GmbH	Head Office, plant and others (Bayern, Germany, etc.)	Industrial plastic parts & components	Facility for production and management for industrial plastic fasteners	437

	Rook value
Company name	Machinery, equipment and vehicles	Land	Molds	Other	Total	Number of employees
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)	(persons)
		(m ² )
Nifco Korea Inc.	537	3,177	987	271	8,647	550
		(123,178)				(214)
Nifco America Corporation	2,385	342	34	536	7,025	1.022
		(311,819)				(0)
Nifco Germany GmbH	1,532	-	-	3,206	5,176	688
		(-)				(119)

(Notes)

1. "Other" in the book value is tools, furniture and fixtures, etc., and does not include construction in progress.

2. The figures in parentheses () in the "Number of employees" column indicate the average number of temporary employees excluded from the figures outside the parentheses.

3. There are no major facilities currently not in operation.

4. Book value includes the amount of right-of-use assets.

3. Plans for Construction and Retirement, etc. of Facilities

(1) Construction, etc. of major facilities

Not applicable.

(2) Retirement, etc. of major facilities

Not applicable.

IV. Status of the Company

1. Status of Shares, etc.

(1) Total number of shares, etc.

(i) Total number of shares

Class	Total number of authorized shares (shares)
Common stock	233,000,000
Total	233,000,000

(ii) Issued shares

Class	Number of issued shares as of the end of the fiscal year (shares) (March 31, 2023)	Number of issued shares as of the filing date (shares) (June 22, 2023)	Name of financial instruments exchange on which the Company's stock is listed or name of authorized financial instruments firms association where the Company is registered	Description
Common stock	107,508,954	107,508,954	Tokyo Stock Exchange, Inc. Prime Market	Number of shares consisting one unit 100
Total	107,508,954	107,508,954	-	-

(2) Status of share acquisition rights, etc.

(i) Description of the stock option plan

Not applicable.

(ii) Description of the rights plan

Not applicable.

(iii) Status of other share acquisition rights, etc.

(Acquisition and cancellation of convertible-bond-type bonds with share acquisition rights)

(i) Status of the share acquisition rights held by the Company's officers which were delivered as consideration for the execution of duties (as of March 31, 2023)

Not applicable.

(ii) Status of the share acquisition rights which were delivered to employees, etc. as consideration for execution of duties during the fiscal year under review

Not applicable.

(iii) Other important matters concerning share acquisition rights, etc.

Not applicable.

(3) Exercise status, etc. of moving strike convertible bonds with share acquisition rights, etc.

Not applicable.

(4) Trends in total number of issued shares and share capital, etc.

Date	Changes in total number of issued shares	Balance of total number of issued shares	Changes in share capital
	(shares)	(shares)	(millions of yen)
September 22, 2022 (Notes)	-	107,508,954	-

Date	Balance of share capital	Changes in legal capital surplus	Balance of legal capital surplus
	(millions of yen)	(millions of yen)	(millions of yen)
September 22, 2022 (Notes)	7,290	(11,500)	151

(Note)

In accordance with the provisions of Article 448, Paragraph 1 of the Companies Act, legal capital surplus was reduced and transferred to other capital surplus.

(5) Shareholding status

As of March 31, 2023

	Status of shares (number of shares consisting one unit: 100)
Category	Government and and municipalities	Financial institutions	Financial instruments business operators	Other corporations

Number of shareholders (persons)	-	36	23	85
Number of shares held (unit)	-	419,085	4,995	128,280
Holding rate of shares (%)	-	38.989	0.464	11.934

	Status of shares (number of shares consisting one unit: 100)
Category	Foreign investors, etc.		Individuals, etc.	Total	Shares less than one unit
	Non-individuals	Individuals			(shares)
Number of shareholders (persons)	272	12	3.286	3,714	-
Number of shares held (unit)	393,051	136	129,312	1,074,859	23,054
Holding rate of shares (%)	36.567	0.012	12.030	100.000	-

(Note)

The treasury shares as of the end of the fiscal year under review are 7,114,953 shares and included in the "Individuals, etc." column. The treasury shares do not include 413,221 shares of the Company held by the executive compensation Board Incentive Plan (BIP) trust established under the "performance-linked stock compensation plan" introduced by the resolution of the Annual General Meeting of Shareholders held on June 24, 2016, and 49,739 shares of the Company held by the stock grant Employee Stock Ownership Plan (ESOP) trust established under the "performance-linked monetary compensation plan" introduced by the resolution of the Board of Directors meeting held on May 11, 2018.

(6) Status of major shareholders

As of March 31, 2023

Name	Location	Number of shares held	Ratio of the number of shares held to the total number of issued shares (excluding treasury shares)
		(thousands of shares)	(%)
The Master Trust Bank of Japan, Ltd. (Trust Account)	2-11-3 Hamamatsucho, Minato-ku, Tokyo	23,665	23.57
Ogasawara Toshiaki Memorial Foundation	5-36-7 Shiba, Minato-ku, Tokyo	10,343	10.30
Custody Bank of Japan, Ltd. (Trust Account)	1-8-12 Harumi, Chuo-ku, Tokyo	7,693	7.66
Goldman, Sachs & Co. Reg (Standing proxy: Goldman Sachs Japan Co., Ltd.)	200 West Street New York,NY,U.S.A. (6-10-1 Roppongi, Minato-ku, Tokyo)	6,152	6.12
Nippon Life Insurance Company	1-6-6 Marunouchi, Chiyoda-ku, Tokyo	2,915	2.90
The Bank Of New York Mellon (International) Limited 131800 (Standing proxy: Settlement & Clearing Services Department, Mizuho Bank, Ltd.)	2-4, Rue Eugene Ruppert, L-2453 Luxembourg, Grand Duchy Of Luxembourg (2-15-1 Konan, Minato-ku, Tokyo)	2,625	2.61
The Dai-ichi Life Insurance Company, Limited	1-13-1 Yurakucho, Chiyoda-ku, Tokyo	2,065	2.05
Taiyo Fund, L. P. (Standing proxy: MUFG Bank, Ltd.)	5300 Carillon Point Kirkland, WA 98033, U.S.A. (2-7-1 Marunouchi, Chiyoda-ku, Tokyo)	1,837	1.83
J.P. Morgan Bank Luxembourg S.A. 381572 (Standing proxy: Settlement & Clearing Services Department, Mizuho Bank, Ltd.)	European Bank And Business Center 6, Route De Treves, L-2633 Senningerberg, Luxembourg (2-15-1 Konan, Minato-ku, Tokyo)	1,581	1.57
Japan Post Insurance Co., Ltd.	2-3-1, Otemachi, Chiyoda-ku, Tokyo	1,342	1.33
Total	-	60,223	59.98

(Notes)

1. The number of shares held and the ratio of the number of shares held to the total number of issued shares are rounded down to the nearest unit.

2. All shares held by The Master Trust Bank of Japan, Ltd. (Trust Account) and Custody Bank of Japan, Ltd. (Trust Account) are shares related to the trust business.

3. Although the Change Report for the Large Shareholding Report was filed as follows, the Company cannot confirm the actual number of shares held as of March 31, 2023, and therefore the details are not included in the above status of major shareholders.

Name	Location	Number of shares held (thousands of shares)	Ratio of the number of shares held to the total number of issued shares (excluding treasury shares) (%)	Change date	Filing date of report
FIL Investments (Japan) Limited	7-7-7 Roppongi, Minato-ku, Tokyo	5,302	4.93	March 31, 2022	April 7, 2022
*Nomura Securities Co., Ltd.	1-13-1 Nihonbashi, Chuo-ku, Tokyo	5,520	5.13	April 29, 2022	May 11, 2022
* Schroder Investment Management (Japan) Limited	1-8-3 Marunouchi, Chiyoda-ku, Tokyo	5,413	5.04	November 15, 2022	November 21, 2022
* Mitsubishi UFJ Financial Group, Inc.	2-7-1 Marunouchi, Chiyoda-ku, Tokyo	4,368	4.06	February 13, 2023	February 20, 2023

(Note)

Shareholders with an asterisk in the "Name" column of the above table are joint shareholders. The name and location of these joint shareholders represent those of the submitter of the report.

(7) Status of voting rights

(i) Issued shares

As of March 31, 2023

Category	Number of shares	Number of voting rights	Description
	(shares)	(units)
Shares without voting rights	-	-	-
Shares with restricted voting rights (treasury shares, etc.)	-	-	-
Shares with restricted voting rights (other)	-	-	-
Shares with full voting rights (treasury shares, etc.)	Common stock 7,114,900	-	-
Shares with full voting rights (other)	Common stock 100,371,000	1,003,710	-
Shares less than one unit	Common stock 23,054	-	-
Total number of issued shares	107,508,954	-	-
Total number of voting rights	-	1,003,710	-

(Note)

"Shares with full voting rights (other)" include 413,221 shares (4,132 voting rights) of the Company held by the executive compensation BIP trust and 49,739 shares (497 voting rights) of the Company held by the stock grant ESOP trust.

(ii) Treasury shares, etc.

As of March 31, 2023

Shareholders' name	Shareholders' address	Number of shares held under own name	Number of shares held under another name	Total number of shares held	Ratio of the number of shares held to the total number of issued shares
		(shares)	(shares)	(shares)	(%)
Nifco Inc.	5-3 Hikarinooka, Yokosuka-shi, Kanagawa	7,114,900	-	7,114,900	6.61
Total	-	7,114,900	-	7,114,900	6.61

(8) Details of executive and employee stock ownership plan

(i) Performance-linked stock compensation plan

The Company's Board of Directors resolved at the meeting held on May 23,2016, to submit a proposal for the introduction of a new stock compensation plan (hereinafter referred to as the "Plan") for the Company's Directors and Executive Officers (excluding External Directors and overseas residents; hereinafter referred to as "Directors, etc.") to the 64th Annual General Meeting of Shareholders held on June 24, 2016, and the proposal was approved at the same Annual General Meeting of Shareholders. The number of Directors and Executive Officers covered by the Plan at the time of the resolution was 4 and 12, respectively. The Company introduced the Plan for Directors, etc. for the purpose of clarifying the link between the compensation of Directors, etc. and the value of the Company's shares, and thereby raising awareness of the need to help improve business performance and enhance corporate value in the medium to long term. As the Plan was valid until August 31, 2019, the Company resolved at the Board of Directors meeting held on May 20, 2019, to submit a proposal for the continuation and partial revision of the Plan to the 67th Annual General Meeting of Shareholders held on June 21, 2019, and the proposal was approved at the same Annual General Meeting of Shareholders. The number of Directors and Executive Officers covered by the Plan at the time of the resolution was 4 and 9, respectively. Along with the transition to a company with an Audit & Supervisory Committee, the Company resolved at the meeting of the Board of Directors held on May 20, 2021, to submit a proposal for the continuation and partial revision of the Plan after abolishing the remuneration limits at that time for Directors and Executive Officers and setting the remuneration limits based on the Plan for Directors and Executive Officers who are not Audit & Supervisory Committee Members (excluding External Directors and overseas residents; hereinafter collectively referred to as "Directors, etc. who are not Audit & Supervisory Committee Members") to the 69th Annual General Meeting of Shareholders held on June 24, 2021, and the proposal was approved at the same Annual General Meeting of Shareholders. The number of Directors and Executive Officers covered by the Plan at the time of the resolution was 3 and 9, respectively.

Outline of performance-linked stock compensation plan approved at the Annual General Meeting of Shareholders held on June 24, 2021

(1) Trust period of the Plan

The trust period after the extension of the Plan shall be approximately 3 years from September 2021, to August 2024 (planned). At the expiration of the trust period, the trust period of the Trust may be continued by changing the trust agreement or making additional contribution to the trust. In such case, the Company shall contribute money to the fund for compensation for each extended trust period to the extent approved at the Annual General Meeting of Shareholders and continue to grant points during the extended trust period. However, in the case of such additional trust, if there are the Company's shares (excluding the Company's shares that are equivalent to the points granted to eligible persons under the Plan as described in (2) below and for which delivery has not yet been completed) and money remaining in the trust property on the last day of the trust period before the extension (hereinafter referred to as the "Remaining Shares, etc."), the sum of the Remaining Shares, etc. and the trust money to be additionally contributed shall be within the maximum amount of the trust money approved at the Annual General Meeting of Shareholders.

In addition, if the trust agreement is not changed and additional contribution to the trust is not made at the expiration of the trust period, no points shall be granted thereafter. However, if eligible persons under the Plan described in (2) below who may meet the beneficiary requirements are in office at that time, the trust period of the Trust may be extended for a maximum of 10 years until such eligible persons retire and the delivery of the Company's shares, etc. is completed.

(2) Eligible persons under the Plan

Eligible persons under the Plan shall be Directors and Executive Officers who are not Audit & Supervisory Committee Members (excluding External Directors and overseas residents; hereinafter referred to as the "Eligible Persons under the Plan").

(3) Number of the Company's shares to be received through the Plan

The number of the Company's shares to be received through the Plan by the Eligible Persons under the Plan shall be determined according to the number of points granted to the Eligible Persons under the Plan each year. In June, in principle, each year during the trust period, the Eligible Persons under the Plan shall be granted "fixed points'' according to their executive ranks and "performance-based points" varying according to the performance set for each executive rank. In June, in principle, immediately after the end of the relevant period, "performance-linked points" shall be calculated by multiplying "performance-based points" by the performance-linked coefficient corresponding to the achievement level of performance targets set forth in the medium to long term management plan for the relevant period. The performance-linked coefficient shall be determined according to the achievement level against the target value of performance (such as operating cash flows, ROIC and TSR) for the relevant period and shall vary from 0% to 200%. The Eligible Persons under the Plan shall receive the Company's shares, etc. according to the cumulative values of "fixed points" and "performance-linked points" (or "performance-based points" if performance-linked points have not yet been calculated) granted in principle at the time of their retirement.

(4) Maximum amount of trust money to be contributed to the Trust and maximum number of points to be granted to the Eligible Persons under the Plan

If the Company sets the maximum amount of money that can be contributed to the Trust for each trust period (approximately three years) at 1,200 million yen ^* and extends the trust period in the second paragraph of (1) above, the Company plans to resolve to set the maximum amount of money that can be contributed to the Trust as remuneration for the Eligible Persons under the Plan for a new trust period after the extension of the trust period in the amount calculated by multiplying 400 million yen by the number of years of the trust period*. If this is resolved, the amount of money that can be contributed to the Trust shall be subject to such maximum amount. The Company plans to resolve at the Annual General Meeting of Shareholders to set the maximum number of points to be granted to the Eligible Persons under the Plan at 160,000 per fiscal year. If this is resolved, the number of shares that can be received by the Eligible Persons under the Plan from the Trust (hereinafter referred to as the "Number of Shares to Be Acquired") shall be subject to the upper limit of the number of shares equivalent to such points.

^* This is the sum of the fund for share acquisition by the Trust, trust fees and trust expenses during the trust period.

(5) Acquisition method of the Company's shares by the Trust

The initial acquisition of the Company's shares by the Trust is scheduled to be conducted from the stock market or the Company (treasury stock disposal) within the maximum amount of the trust money and the upper limit of the Number of Shares to Be Acquired in (4) above. If there is a possibility that the number of shares in the Trust may fall short of the number of shares corresponding to the points determined for each Eligible Person under the Plan during the trust period, the Company may entrust additional money to the Trust and additionally acquire the Company's shares within the maximum amount of trust money and the upper limit of the Number of Shares to Be Acquired approved at the Annual General Meeting of Shareholders in (4) above.

(ii) Performance-linked monetary compensation plan

The Company resolved at the meeting of the Board of Directors held on June 21, 2019, to introduce a monetary compensation plan for the Company's Directors and Executive Officers who do not meet the beneficiary requirements of the performance-linked stock compensation plan above (excluding External Directors; hereinafter referred to as "Directors, etc."). The plan covers Directors, etc. who are non-residents in Japan. While the Company considered applying the share compensation plan also to non-residents in Japan, taking into account the fact that securities-related legal affairs, taxation and accounting in foreign countries differ from those in Japan and other factors, the Company decided to apply the monetary compensation plan to non-residents in Japan.

(1) Outline of monetary compensation plan

Under the Plan, fixed points and performance-linked points granted according to the achievement level of performance, etc. shall be converted into money and paid on the first Friday of the month following the grant date of such points.

(2) Scope of persons who may receive beneficial interests or other rights under the Plan

Directors, etc. who are non-residents in Japan (excluding External Directors)

(3) Details of performance achievement requirements

In June of each year, Directors, etc. shall be granted "fixed points'' according to their executive ranks and "performance- based points" varying according to the performance set for each executive rank. In June, in principle, immediately after the end of the relevant period, "performance-linked points" shall be calculated by multiplying "performance-based points" by the performance-linked coefficient corresponding to the achievement level of performance targets set forth in the medium to long term management plan for the relevant period. The performance-linked coefficient shall be determined according to the achievement level against the target value of performance (such as operating cash flows, ROIC and TSR) for the relevant period and shall vary from 0% to 200%. Directors, etc. shall receive monetary benefits according to the cumulative values of "fixed points" and "performance-linked points" (or performance-based points if performance-linked points have not yet been calculated) granted during their terms of office. The maximum number of points is 160,000 per fiscal year.

(4) Formula

Points shall be calculated in accordance with (i) (5) above to ensure consistency with the performance-linked stock compensation plan above.

(iii) Employee stock compensation plan

The Company carries out transactions to deliver its shares to its employees through a trust for the purpose of fostering a sense of belonging and a sense of participation in management among employees, enhancing awareness and morale of employees regarding the need to improve business performance and increase share price in the long term, and enhance corporate value in the medium to long term.

(1) Overview of transactions

The Company introduced a stock compensation plan for employees (hereinafter referred to as the "Plan") on August 27, 2018, for the purpose of raising awareness of the need to help improve business performance and enhance corporate value of the Company in the medium to long term.

The Plan adopts a scheme called the Employee Stock Ownership Plan (ESOP) Trust (hereinafter referred to as "ESOP Trust"). The ESOP Trust is an employee incentive plan based on the ESOP system in the United States, and the Company's shares acquired by the ESOP Trust are granted to executive-level employees who meet certain requirements and employees who contribute significantly to the Company's business performance pursuant to the prescribed Share Grant Rules. No burden is imposed on employees since the funds for the acquisition of the Company's shares to be acquired by the trust are entirely contributed by the Company.

The Company expects that introducing the ESOP Trust will facilitate business operations with the awareness of the share price and increase work motivation since employees can receive economic benefits from the increased share price of the Company's shares. In addition, the exercise of voting rights pertaining to the Company's shares belonging to the trust property of the ESOP Trust reflects the intention of employees who are potential beneficiaries, and the Plan is effective as a plan to enhance corporate value and to encourage employees' participation in management.

(2) The Company's shares remaining in the trust

The Company's shares remaining in the trust are recorded as treasury shares in the net assets section at the carrying amount in the trust (excluding the amount of ancillary expenses)

2. Status of Acquisition, etc. of Treasury Shares

Class, etc. of shares

Acquisitions of common stock falling under Article 155, item 3 of the Companies Act and acquisitions of common stock falling under Article 155, item 7 of the Companies Act

(1) Stock acquisition by resolution of the Annual General Meeting of Shareholders Not applicable.

(2) Stock acquisition by resolution of the Board of Directors

Category	Number of shares	Total value
	(shares)	(yen)
Resolution of the Board of Directors (February 3, 2023) (Period of acquisition: From February 6, 2023 to February 28, 2023)	320,000	1,000,000,000
Treasury shares acquired before the fiscal year under review	-	-
Treasury shares acquired during the fiscal year under review	286,900	999,655,500
Total number and total value of remaining resolved shares	33,100	344,500
Unexercised ratio as of the end of the fiscal year under review (%)	10.34	0.03
Treasury shares acquired during the relevant period	-	-
Unexercised ratio as of the filing date (%)	10.34	0.03

Category	Number of shares	Total value
	(shares)	(yen)
Resolution of the Board of Directors (March 14, 2023) (Period of acquisition: From March 16, 2023 to April 30, 2023)	280,000	1,000,000,000
Treasury shares acquired before the fiscal year under review	-	-
Treasury shares acquired during the fiscal year under review	68,900	240,878,497
Total number and total value of remaining resolved shares	211,100	759,121,503
Unexercised ratio as of the end of the fiscal year under review (%)	75.39	75,91
Treasury shares acquired during the relevant period	203,900	758,766,992
Unexercised ratio as of the filing date (%)	2.57	0.03

(3) Details of stock acquisitions not based on resolution of the Annual General Meeting of Shareholders or the Board of Directors

Category	Number of shares	Total value
	(shares)	(yen)
Treasury shares acquired during the fiscal year under review	243	771,754
Treasury shares acquired during the relevant period	88	339,800

(Notes)

1. Treasury shares acquired during the relevant period do not include shares acquired by the purchase of shares less than one unit from June 1, 2023, to the filing date of this Annual Securities Report.

2. The number of treasury shares acquired does not include the number of shares acquired by the executive compensation BIP trust.

(4) Status of disposal and holding of acquired treasury shares

	Fiscal year ended March 31, 2023		Relevant period
Category	Number of shares (shares)	Total disposal value (yen)	Number of shares (shares)	Total disposal value (yen)
Acquired treasury shares for which subscribers were solicited	-	-	-	-
Acquired treasury shares which were cancelled	-	-	-	-
Acquired treasury shares which were transferred for merger, share exchange, share delivery or company split	-	-	-	-
Other (disposal of treasury shares through third- party allotment in connection with granting of special incentives)	94,490	262,304,240	-	-
Other (disposal of treasury shares through third- party allotment in connection with extension of the ESOP Trust period)	27,800	86,736,000	-	-
Other (demand for sale of shares less than one unit)	-	-	-	-
Number of treasury shares held	7,114,953	-	7,318,941	-

(Notes)

1. Treasury shares disposed of during the relevant period do not include shares disposed of by the sale of shares less than one unit from June 1, 2023, to the filing date of this Annual Securities Report.

2. Treasury shares held during the relevant period do not include shares subject to the purchase and sale of shares less than one unit from June 1, 2023, to the filing date of this Annual Securities Report.

3. The number of shares of treasury shares described below in "V. Financial Information" is 7,577,913. This is because, based on the accounting treatment in which the Company and the Nifco Employee Stock Ownership Plan trust account are integrated, 413,221 shares of the Company held by the executive compensation BIP trust account and 49,739 shares of the Company held by the share grant ESOP trust account are included in treasury shares.

3. Dividend Policy

The Company adopts a policy of paying a dividend of approximately 30% of consolidated net profit. This is because the contribution of overseas subsidiaries to the Group's consolidated profit is increasing due to the progress of globalization, and setting the dividend payout ratio based on consolidated profit rather than non-consolidated profit contributes to shareholder returns. The Company's basic policy is to pay dividends of surplus twice a year as interim and year-end dividends.

In accordance with the approval of the "Partial changes of the Articles of Incorporation" at the Annual General Meeting of Shareholders held on June 24, 2021, the Articles of Incorporation newly stipulate that "The Company may, except as otherwise provided in laws and regulations, determine the matters prescribed in each item of Article 459, Paragraph 1 of the Companies Act, including dividends of surplus, by resolution of the Board of Directors." However, interim dividends shall be determined by resolution of the Board of Directors and year-end dividends shall be determined by resolution of the Annual General Meeting of Shareholders.

As announced on May 12, 2023, the year-end dividend for the fiscal year ended March 31, 2023, was 33 yen per share. As a result, the annual dividend per share is 64 yen, including the interim dividend of 31 yen already paid.

Dividends of surplus for the fiscal year under review are as follows.

Resolution date	Total amount of dividends	Dividends per share
	(millions of yen)	(yen)
Resolution of the Board of Directors on October 28, 2022	3,122	31
Resolution of the Annual General Meeting of Shareholders held on June 22, 2023	3,313	33

(Notes)

1. The total amount of dividends resolved at the meeting of the Board of Directors held on October 28, 2022, includes dividends of 12 million yen to the executive compensation BIP trust account, and the total amount of dividends resolved at the Annual General Meeting of Shareholders held on June 22, 2023, includes dividends of 13 million yen to the executive compensation BIP trust account.

2. The total amount of dividends resolved at the meeting of the Board of Directors held on October 28, 2022, includes dividends of 0 million yen to the stock grant ESOP trust account, and the total amount of dividends resolved at the Annual General Meeting of Shareholders held on June 22, 2023, includes dividends of 1 million yen to the stock grant ESOP trust account.

4. Status of Corporate Governance, etc.

(1) Overview of corporate governance, etc.

(i) Basic Views on corporate governance

We marked the 51st anniversary of our foundation in 2018, and formulated the following new corporate philosophy with a commitment to a new stage of growth.

[Mission] - Social mission/reason for existing

Nifco generates ideas and cultivates technology to turn your expectations into excitement.

[Vision] - The way we should be to embody our Mission

Driving change with growing inventiveness

[Values] - Words embodying the uniqueness of Nifco

-This is Nifco-

Be proactive and break through

Communicate and collaborate

Challenge and innovate

Under the new corporate philosophy, we will keep on pursuing innovative business development, upholding the corporate message, "Wowing the world," toward becoming a company that meets the expectations of stakeholders and continues to be trusted widely by society.

We consider it necessary as a corporation to respond to the drastically changing social and economic environment flexibly and appropriately by strictly enforcing compliance and implementing appropriate risk management. At the same time, we believe it important to thoroughly disseminate and practice such principles.

Based on this fundamental policy mentioned above, we endeavor to implement corporate governance to the fullest extent as a priority issue, and to promote reinforcement of Group management.

(ii) Outline of the corporate governance system and reasons for adopting the system

The Company's corporate governance system as of the end of the fiscal year under review is as follows.

a. Basic explanation of the organizations within the company

The Company has transitioned from a company with an Audit & Supervisory Board to a company with an Audit & Supervisory Committee as of June 24, 2021. This is to enhance the audit and supervisory functions of the Board of Directors and further strengthen corporate governance by making members of the Audit & Supervisory Committee, who are responsible for auditing the execution of duties by Directors, members of the Board of Directors and granting them voting rights at the Board of Directors meetings.

As of the end of the fiscal year under review, there were nine Directors (including five External Directors).

The Board of Directors makes decisions on the Company and formulates management strategies for subsidiaries to improve and improve the Group's business performance and to strengthen corporate governance.

In particular, External Directors express useful opinions from a standpoint and perspective independent from the company, thereby further improving and reinforcing corporate governance.

The Board of Directors holds regular meetings once a month in principle and extraordinary meetings as necessary, and held 14 meetings in FY2022. In fiscal 2022, the Audit and Supervisory Committee met 14 times.

The Board of Directors at the end of the fiscal year under review consisted of nine Directors: Toshiyuki Yamamoto, Chairman & Representative Director; Masaharu Shibao, President & Representative Director; Toshiki Yauchi, Director & Senior Executive Managing Officer; Yoshiko Nonogaki, External Director; Brian K. Heywood, External Director; Masayuki Abe, External Director; Junji Honda, Director, Audit & Supervisory Committee Member; Toshiyuki Arai, External Director, Audit & Supervisory Committee Member; and Mitsuhiro Matsumoto, External Director, Audit & Supervisory Committee Member. The Board of Directors is chaired by Toshiyuki Yamamoto, Chairman & Representative Director, in accordance with the Board of Directors' Rules of the Company.

The Audit & Supervisory Committee at the end of the fiscal year under review consisted of three members: Junji Honda, Director, Full-time Audit & Supervisory Committee Member; Toshiyuki Arai, External Director, Audit & Supervisory Committee Member; and Mitsuhiro Matsumoto, External Director, Audit & Supervisory Committee Member.

On the other hand, relatively important matters not discussed at the Board of Directors meetings are deliberated and reported at the Management Committee (which consists of Inside Directors, Executive Officers and other executive members) meetings held once a month in principle.

The Management Committee at the end of the fiscal year under review consisted of five Directors and 11 Executive Officers: Toshiyuki Yamamoto, Chairman & Representative Director; Masaharu Shibao, President & Representative Director; Toshiki Yauchi, Director & Senior Managing Executive Officer; Brian K. Heywood, External Director; Junji Honda, Director, Audit & Supervisory Committee Member; Fukuo Iwasaki, Senior Executive Managing Officer; Masanobu Kawamoto, Executive Managing Officer; Masashi Koizumi, Executive Managing Officer; Masaya Nagaoka, Executive Managing Officer; Goro Asami, Executive Officer; Norihiko Murata, Executive Officer; Yuji Kubota, Executive Officer; Kumi Sano, Executive Officer; Ken Yokota, Executive Officer; Kazuomi Sakata, Executive Officer; and Akihiko Hirose, Executive Officer. The Management Committee is chaired by Masaharu Shibao, President & Representative Director, in accordance with the Management Committee's Rules of the Company.

Furthermore, in order to materialize the "System to ensure that the execution of duties by Directors complies with laws, regulations and the Articles of Incorporation, and other systems to ensure the appropriateness of operations of the Company" (details will be described later), the Company established the Risk Management Committee, Compliance Committee and Information Security Committee under the Board of Directors and has operated them since FY2007. In fiscal 2022, the Sustainability Committee was newly established as an advisory committee to the Board of Directors, and it provides advice and recommendations to the Board of Directors.

The Company is improving corporate governance through serious discussions at these committees. The number of meetings held in FY2022 was as follows.

	Risk Management Committee (two meetings)
	Compliance Committee (two meetings)
	Information Security Committee (three meetings)
	Sustainability Committee (one meeting)

The Company has an executive officer system to ensure prompt and smooth execution of business, and Inside Directors concurrently serve as Executive Officers. Therefore, the Board of Directors not only supervises the execution of business by Directors who concurrently serve as Representative Directors and Executive Officers, but also supervises the execution of business by Executive Officers.

b. Status of the internal control system

A system to ensure that the execution of the duties of Directors complies with laws and regulations and the Articles of Incorporation, and a system to ensure the appropriateness of the operations of the Company are resolved by the Board of Directors as follows.

1.	System to ensure that the execution of duties by Directors and employees complies with laws and regulations and the Articles of Incorporation Under the Nifco Group Corporate Action Charter, while complying with laws and regulations, etc. led by the Compliance Committee based on Nifco's Compliance Rules, the Nifco Group will establish an internal system to execute the duties by Directors and employees with a high sense of ethics. In addition, if there is any approach, etc. by anti-social forces, we will shut out and exclude anti-social forces without accepting any undue claims, etc. under the supervision of the Compliance Committee.
2.	System for Storage and Management of Information Concerning the Execution of Duties of Directors Based on the Document Management Rules, we will develop a robust storage and management system for said information, so that the decision-making process concerning the execution of duties of Directors and the detailed status of the execution of duties can be reviewed at any time.
3.	Rules and Other Systems for Risk Management of Loss Based on the Basic Regulations of Risk Management, the main risks of the Nifco Group will be extracted and analyzed, and preventive measures against each risk will be examined and implemented led by the Risk Management Committee. Moreover, we will establish a post-response system in order to minimize loss, even if any risk is actualized. In addition, an information security system based on the Information Security Policy will be promoted, led by the Information Security Committee.
4.	System to Ensure that the Duties of Directors are Executed Efficiently The Directors shall efficiently execute their duties after holding detailed deliberations on important matters for management in the Management Committee meeting held monthly, in addition to the Board of Directors meeting. The Directors shall request Executive Officers and the Manager of the Department in charge to attend the Management Committee meeting as required and give appropriate instructions in response to reports on the execution and management status of pending matters, in order to improve the efficiency of their execution of duties. We will establish a system to convey the decisions made, policies, and instructions by Directors throughout the organization through such communication, so that integrated and efficient duties can also be executed by management including the Executive Officers.
5.	System to Ensure the Appropriateness of the Operations in the Nifco Group Based on the regulations of authority for related companies in Japan and overseas, the Company will accurately understand the status of the subsidiary companies belonging to the Nifco Group for proper management. We receive not only the monthly report on the business performance figures but also qualitative reports on customers and products, etc. Moreover, management as well as the Directors of the Company shall visit the subsidiary companies including overseas as required, in order to understand and solve issues.
6.	System Concerning Directors and Employees Who Must Assist the Duties of the Audit & Supervisory Committee, Matters Concerning Independency of Employees from Directors, and Matters Concerning Effectiveness of Instructions Given to Employees When staff are requested by the Audit & Supervisory Committee, the Board of Directors shall pay careful attention to the request from the Audit & Supervisory Committee and make adjustments in the execution of business operations. Employees who are appointed as staff shall give priority to the work directly received from the Audit & Supervisory Committee, and shall not accept direct orders from Directors (except for the Directors who are Audit & Supervisory Committee Members) for said work ordered directly. Moreover, prior consent of the Audit & Supervisory Committee shall be obtained for staff reassignment and personal evaluation of employees who are appointed as staff.
7.	System for Directors (except for the Directors who are Audit & Supervisory Committee Members) and Employees to Provide Reports to the Audit & Supervisory Committee The Board of Directors shall ensure that Directors and employees are fully aware of their obligation to provide reports on important matters to the Audit & Supervisory Committee. Based on the Nifco Group Internal Whistleblowing Regulations, the Company will establish internal and external contacts to collect extensive information, in order to ensure that there are no cases of compliance violations. The system of the contacts is to report the contents of the collected information to the Audit & Supervisory Committee. We also ensure that the whistleblower will not be subject to adverse disposition or unfair treatment due to the reporting of information. Moreover, the full-time Audit & Supervisory Committee members not only attend the Board of Directors meeting but also attend meetings held by the executive departments, such as the Management Committee meeting, in order to receive reports on the execution status of the duties of Directors and management. In addition, full-time Audit & Supervisory Committee members shall establish a system so that the requests for approval are reviewed before approval, and ask questions to and obtain reports from the Director or employee in charge on the contents of said requests for approval.
8.	System to Ensure that Audits by the Audit & Supervisory Committee are Conducted Effectively Directors including Representative Directors shall periodically exchange opinions with the Audit & Supervisory Committee, and the Audit & Supervisory Committee shall hold periodic discussions with the Internal Audit Department. The Audit & Supervisory Committee and the Internal Audit Department shall hold deliberations and discussions with the accounting auditors, as well as hold deliberations and exchange opinions with the Auditing Divisions of subsidiary companies in Japan and overseas as required. If any expense is incurred in order to execute the duties of the Audit & Supervisory Committee, the expense shall be handled appropriately and promptly.

c. Reasons for adopting the current corporate governance system

As of the end of the fiscal year under review, the Company's External Directors with extensive knowledge and experience in finance, foreign exchange and international affairs supervise management policies and business execution from a fair standpoint, and two External Directors who are Audit & Supervisory Committee Members with specialized knowledge and experience in accounting, taxation, legal affairs and others, and full-time Inside Directors with knowledge of internal affairs who are Audit & Supervisory Committee Members conduct audits in cooperation with the Accounting Auditor and the Audit Department.

As described above, the Company believes that such supervision and audits will ensure the appropriateness of operations, and has selected the above system as of the end of the fiscal year under review.

(iii) Other matters related to corporate governance

a. Resolutions of the Annual General Meeting of Shareholders that can be resolved by the Board of Directors

The Company's Articles of Incorporation provide that matters stipulated under each item of Article 459, Paragraph 1 of the Companies Act, such as dividends of surplus, shall be determined by resolution of the Board of Directors instead of resolution of the Annual General Meeting of Shareholders, unless otherwise provided by laws and regulations.

This is intended to enable flexible capital policy and dividend policy by authorizing the Board of Directors to determine matters such as dividends of surplus. However, it is the Company's policy that interim dividends shall be determined by resolution of the Board of Directors and year-end dividends shall be determined by resolution of the Annual General Meeting of Shareholders.

b. Number of Directors

The Company's Articles of Incorporation provide that the number of Directors who are not Audit & Supervisory Committee Members shall be no more than eight and the number of Directors who are Audit & Supervisory Committee Members shall be no more than three.

c. Requirements for resolutions of Directors election

The Company's Articles of Incorporation provide that a resolution to elect a Director shall be made by a majority of the votes of shareholders present at the meeting who hold at least one-third of the voting rights of shareholders entitled to exercise their voting rights.

The Articles of Incorporation also provide that cumulative voting shall not be used for the election of Directors.

d. Requirements for special resolutions at the Annual General Meeting of Shareholders

The Company's Articles of Incorporation provide that the resolution stipulated in Article 309, Paragraph 2 of the Companies Act shall be made by at least two-thirds of the votes of shareholders present at the meeting who hold at least one-third of the voting rights of shareholders entitled to exercise their voting rights. This is intended to ensure smooth management of the Annual General Meeting of Shareholders by relaxing the quorum for special resolutions at the Annual General Meeting of Shareholders.

e. Overview of limited liability agreements

The Company provides in its Articles of Incorporation that it may enter into agreements with Directors (excluding those who are Executive Directors, etc.) to limit their liability for damages under Article 423, Paragraph 1 of the Companies Act if such agreements satisfy the requirements set forth in laws and regulations. The maximum amount of liability under such agreements shall be the higher of the predetermined amount of no less than 20 million yen or the minimum liability amount stipulated by laws and regulations. Pursuant to these provisions of the Articles of Incorporation, the Company has entered into agreements with External Directors to limit their liability for damages under Article 423, Paragraph 1 of the Companies Act, and the maximum amount of liability under such agreements shall be the higher of 20 million yen or the minimum liability amount stipulated by laws and regulations.

f. Exemption from liability of Directors

Pursuant to the provisions of Article 426, Paragraph 1 of the Companies Act, the Company provides in its Articles of Incorporation that if Directors (including former Directors) have acted in good faith and without gross negligence, they may be exempted from liability under Article 423, Paragraph 1 of the Companies Act by resolution of the Board of Directors to the extent permitted by laws and regulations. This is to ensure that Directors are able to fulfill their expected roles in the execution of their duties.

g. Overview of indemnification agreements

The Company has entered into a directors and officers liability insurance (D&O insurance) policy as provided in Article 430-3, Paragraph 1 of the Companies Act with an insurance company. The scope of the insured under such insurance policy is the Company's Directors, Executive Officers and employees in managerial positions as well as officers of the Company's subsidiaries, etc., and the insured bears no insurance premiums. It is stipulated that such insurance policy covers damages that may arise when the insured assumes liability for the execution of his/her duties or is subject to a claim for the pursuit of such liability.

However, there are certain conditions of exemption; for example, damages arising from acts committed with the knowledge that they violate laws and regulations or damages arising from illegally obtaining profits or benefits arc not covered.

The insurance policy stipulates a deductible, and any damage up to the deductible is not covered.

h. Activities of the Board of Directors

During the fiscal year under review, the Company held meetings of the Board of Directors basically once a month for a total of 14 times. The attendance of individual Directors is as follows.

Name	Number of attendances
Toshiyuki Yamamoto	14 times
Masaharu Shibao	14 times
Toshiki Yauchi	14 times
Yoshiko Nonogaki	14 times
Brian K. Heywood	14 times
Masayuki Abe	14 times
Junji Honda	14 times
Toshiyuki Arai	13 times
Mitsuhiro Matsumoto	14 times

The Board of Directors also discusses growth strategies and human asset strategies, as well as performance reports and matters to be resolved based on the Board of Directors' Rules.

i. Overview and activities of the Nomination, Compensation and Governance Committee

In order to enhance the independence, objectivity and transparency of the details of the Officers' compensation plan, the Company established the Nomination, Compensation and Governance Committee on October 28, 2020, as an advisory body to the Board of Directors, and it is chaired by and a majority of its members are Independent External Directors. The committee shall meet at least four times a year in principle, deliberate on individual compensation amounts and qualitative evaluations, and provide advice and recommendations to the Board of Directors. The Board of Directors makes resolutions on individual compensation amounts in response to the report of the Committee. In order to introduce objective perspectives and specialized knowledge on the executive compensation system from outside the Company, the Nomination, Compensation and Governance Committee shall consider compensation levels and compensation systems, etc., taking into account external data, the economic environment, industry trends, management conditions and other factors, upon the advice of an external consultant appointed by the committee. In fiscal 2022, the Nomination, Compensation and Governance Committee met five times to discuss performance evaluation and compensation decisions, CEO succession plans and reviews, executive coaching, Officers' compensation policy review and decisions, and the new year management system review and decisions. After deliberation by the Nomination, Compensation and Governance Committee, the Company resolved at the meeting of the Board of Directors held on May 19, 2022, to adopt the officer nomination policies for FY2022 and beyond. At a meeting of the Board of Directors held on May 18, 2023, the Board of Directors reviewed some of the wording and adopted a new resolution. The details are as follows.

[Officer Nomination Policies]

Fundamental policy of corporate governance

At the Company, we desire to always be of service to all stakeholders including our employees, customers, shareholders, investors, users, business partners and local communities.

We marked the 51st anniversary of our foundation in 2018, and formulated the following new corporate philosophy with a commitment to a new stage of growth.

[Mission] - Social mission/reason for existing

Nifco generates ideas and cultivates technology to turn your expectations into excitement.

[Vision] - The way we should be to embody our Mission

Driving change with growing inventiveness

[Values] - Words embodying the uniqueness of Nifco

-This is Nifco-

Be proactive and break through

Communicate and collaborate

Challenge and innovate

Based on this fundamental policy mentioned above, we endeavor to implement corporate governance to the fullest extent as a priority issue, and to promote reinforcement of Group management.

1. Required elements for Chief Executive Officer (CEO)

The anticipated candidate profile of the CEO of the Company is an individual who can realize and embody Nifco's corporate philosophy (Mission, Vision and Values). Based on the fundamental policy of corporate governance described above, the Company has defined the required elements (responsibilities and authority, main duties, expected results, competency, knowledge and skills, mindset, experience, etc.) for the CEO. The details of the competency and mindset are as follows.

Required elements		Description
Competency	Establishment of vision and strategy	• Gains insight into the future image of the market and users, develops business models and strategies that generate competitive advantages, and determines key indicators and order of priority.
	Construction and reinforcement of the organization	• Constructs an organization and mechanisms suitable for strategies and develops human resources through allocation of management resources and delegation of authority.
	Transformational leadership	• Informs and motivates related persons of the need for change and reform, proactively takes the lead in creating and driving change, and promotes sustainable growth of the company through new business creation.
	Response to changes	• Ascertains the latest information about the business, identifies risks and opportunities sensitively, makes timely decisions on business course adjustments, discontinuance or withdrawal and implements them.
	Ethical standards	• Makes decisions that not only lead to gaining benefits for Nifco but also contribute to society based on corporate social responsibility.
Mindset and personality traits	Realization of the corporate philosophy	• Has a deep understanding of Nifco's corporate philosophy and corporate culture and embodies them with his/her own judgment and words and actions.
	Learning ability and curiosity	• Respects and listens to diverse opinions and information, has an attitude to consider various ways of thinking and ideas, and creates new perspectives.
	Passion and commitment	• Has a passion for and commitment to growth and achievement of goals at all times rather than being satisfied with the status quo and takes various measures to thoroughly get things done.
	Breakthrough	• Learns from the history of Nifco, which has continued to provide new surprises to the world, and is persistent in thinking outside the box and beyond frameworks and overcoming difficulties to create new surprises and joy.
	Personality and virtue	• Is well trusted by related persons inside and outside the Company who are willing to follow his/her footsteps because of his/her profound broadmindedness underpinned by sincerity, integrity and humanity.

2. Appointment and dismissal criteria

The Company shall appoint and dismiss senior management officers with an emphasis on their understanding of the business environment and management conditions that are necessary for formulating management strategies and ability to demonstrate strong leadership in promptly and properly executing the management strategies set forth by the Board of Directors as well as their experience, particularly in global business.

The Company shall appoint the CEO in consideration of the advice and recommendations of the Nomination, Compensation, and Governance Committee based on the required elements for a CEO described above.

The Company shall dismiss the CEO based on discussions held promptly by the Committee and the Board of Directors, should any act that raises suspicion of meeting the following criteria for dismissal arise.

(1)	When there has been an act suspected of being wrongful, unjust or a breach of trust.
(2)	When he/she is found to be ineligible as the CEO due to misconduct, such as a violation of the Companies Act or related laws and regulations.
(3)	When the qualities of the CEO are in doubt in light of the business environment related to the required elements for a CEO described above.
(4)	When the process of performing his/her duties or the results thereof are insufficient, and it has been judged that it would be inappropriate to keep him/her in the position of CEO.

Each year, the Nomination, Compensation and Governance Committee shall evaluate the CEO based on the required elements for a CEO described above, his/her performance, as well as other factors, and advise the Board of Directors on his/her reappointment for the following year after confirming the CEO's plans for the coming years and his/her willingness to continue serving as CEO.

3. Successor plan

The CEO successor plan shall be discussed by the Nomination, Compensation and Governance Committee based on the required elements for a CEO described above. The Board of Directors shall monitor whether the successor plan is appropriately carried out in consideration of the report on the deliberation by the Committee.

4. Term of office

The term of office of Directors who are not Audit & Supervisory Committee Members (including Independent External Directors) shall be one (1) year, and the appropriateness of their reappointment shall be determined annually.

The term of office of Directors who are Audit & Supervisory Committee Members shall be two (2) years, and the appropriateness of their reappointment shall be determined every two years.

5. Decision-making process

In order to enhance the independence, objectivity and transparency of the details of the appointment and dismissal criteria for Directors and the decision-making process for nominations, the Company established the Nomination and Compensation Committee on December 10, 2018, and it is chaired by and a majority of its members are Independent External Directors, as an advisory body to the Board of Directors. In addition, the Committee was renamed the Nomination, Compensation and Governance Committee on October 28, 2020, in order to further strengthen the Company's efforts for governance going forward. The Nomination, Compensation and Governance Committee, in principle, convenes no fewer than four times a year, and deliberates mainly on the Directors' appointment and dismissal criteria and the CEO successor plan and provides advice and recommendations to the Board of Directors.

In order to adopt an objective viewpoint and specialized knowledge from outside the Company regarding nominations, the Nomination, Compensation, and Governance Committee may seek advice from an external consultant or other experts on the details of the Directors' appointment and dismissal criteria, the CEO successor plan, etc., taking into consideration factors such as external data, the economic environment, industry trends, and management conditions.

6. Engagement policy

The Company shall promptly disclose the details of the Directors' appointment and dismissal criteria, the CEO successor plan, etc. to its shareholders through the Annual Securities Report, Business Report, Corporate Governance Report, Nifco Report or the corporate website, etc. that will be prepared and disclosed in accordance with various laws and regulations. In addition, the Company will actively promote engagement with institutional investors.

j. The Company's corporate governance system

The Company's corporate governance system is as follows.

(2) Status of Officers

(i) List of Officers

Seven men and two woman (ratio of women officers among all officers: 22%)

Title	Name	Date of birth	Career summary
President & Representative Director, Chief Executive Officer (CEO)	Masaharu Shibao	December 14, 1961	April 1985
			April 2010
			June 2015
			June 2016
			June 2019
			June 2020
			April 2021
			June 2023
Chairman & Director	Toshiyuki Yamamoto	October 11, 1949	April 1973
			January 1995
			June 2002
			April 2008
			June 2012
			June 2016
			June 2017
			June 2020
			April 2021
			June 2023
Director & Senior Executive Managing Officer, Chief Financial Officer (CFO) & Chief Strategy Officer (CSO)	Toshiki Yauchi	July 16, 1961	April 1985
			July 2007
			June 2015
			June 2018
			June 2019
			June 2020
			June 2021
External Director	Yoshiko Nonogaki	July 31, 1957	April 1980
			September 1992
			April 2009
			April 2013
			June 2015
			June 2019
			June 2020
			June 2021
External Director	Brian K. Heywood	January 9, 1967	September 1991
			September 1997
			August 1999
			January 2001
			November 2014
			March 2020
			June 2020
			March 2022
External Director	Masayuki Abe	October 5, 1956	April 1980
			March 2003
			May 2010
			December 2013
			March 2015
			April 2018
			June 2021
Director (Full-time Audit & Supervisory Committee Member)	Junji Honda	November 10. 1952	April 1988
			June 2002
			June 2004
			April 2013
			June 2014
			June 2015
			April 2017
			April 2021
			June 2021
External Director (Audit & Supervisory Committee Member)	Mitsuhiro Matsumoto	May 7, 1969	October 1992
			October 1999
			September 2008
			August 2014
			June 2019
			June 2021
External Director (Audit & Supervisory Committee Member)	Izumi Havashi	August 20. 1958	April 1986
			March 1987
			January 2015
			August 2019
			October 2019
			April 2020
			June 2020
			June 2023
			Total

Title	Career summary	Term of office	Number of shares held (shares)
President & Representative Director, Chief Executive Officer (CEO)	Joined the Company	(Note) 5	39,530 (32,730)
	President of Nifco Deutschland GMBH
	Executive Officer of the Company, President of Nifco America Corp.
	Director & Executive Managing Officer, Chief Marketing Officer, Head of Sales of the Company
	Director & Senior Managing Director, Chief Marketing Officer, Head of Sales, in charge of Technology & Platform Business Department of the Company
	Vice President & Representative Director, Head of Sales, Chief Operating Officer (COO) of the Company
	President & Representative Director, Chief Operating Officer (COO) of the Company
	President & Representative Director, Chief Executive Officer (CEO) of the Company (to present)
Chairman & Director	Joined the Company	(Note) 5	66,466 (53,766)
	General Manager of Sagamihara Plant of the Company
	Executive Officer of the Company
	Executive Officer of the Company, President of Nifco America Corp.
	President & Representative Director, Chief Operating Officer of the Company
	Chairman & President & Representative Director, Chief Executive Officer & Chief Operating Officer of the Company
	President & Representative Director, Chief Executive Officer & Chief Operating Officer of the Company
	President & Representative Director, Chief Executive Officer (CEO) of the Company
	Chairman & Representative Director, Chief Executive Officer (CEO) of the Company
	Chairman & Director of the Company (to present)
Director & Senior Executive Managing Officer, Chief Financial Officer (CFO) & Chief Strategy Officer (CSO)	Joined the Company	(Note) 5	24,172 (22,072)
	General Manager of Corporate Planning Department of the Company
	Executive Officer, General Manager of Corporate Planning Department of the Company
	Director & Executive Managing Officer, General Manager of Corporate Planning Department, in charge of Administration & Finance Department of the Company
	Director & Senior Executive Managing Officer, General Manager of Corporate Planning Department, in charge of Administration & Finance Department of the Company
	Director & Senior Executive Managing Officer, General Manager of Corporate Planning Department, Head of Administration, Chief Strategy Officer (CSO), Chief Information Officer (CIO), in charge of Finance Department of the Company
	Director & Senior Executive Managing Officer, Chief Financial Officer (CFO) & Chief Strategy Officer (CSO) of the Company (to present)
External Director	Joined Sony Corporation (current Sony Group Corporation)	(Note) 5	(-)
	President & Representative Director of Sony Poland
	General Manager of Planning & Marketing Division, Business & Professional Business Division of Sony Corporation (current Sony Group Corporation)
	Global Diversity Director of Human Resources Division of the company
	External Director of Jolly Pasta Co., Ltd.
	External Director of the Company (to present)
	External Director of GS Yuasa Corporation (to present)
	External Director of Sato Holdings Corporation (to present)
External Director	Joined J.D. Power and Associations	(Note) 5	(-)
	Director of Belron International
	Vice President of Citibank, N.A.
	CEO of Taiyo Pacific Partners, L.P. (to present)
	External Director of Roland Corporation
	External Director of Roland DG Corporation (to present)
	External Director of the Company (to present) External Director, Maxell Holdings, Ltd. (current Maxell, Ltd.)
	External Director of Roland Corporation (to present)
External Director	Joined Kao Soap Co., Ltd. (current Kao Corporation)	(Note) 5	200 (-)
	General Manager of Information Technology Group of the company
	General Manager of Strategic Planning Department of the company
	General Manager of Information Systems Division of the company
	Executive Officer of the company
	Advisor of Digital Business Division (current IT Division) of Toppan Forms Co., Ltd. (current TOPPAN Edge Inc.) (to present)
	External Director of the Company (to present)
Director (Full-time Audit & Supervisory Committee Member)	Joined the Company	(Note) 6	25,889 (11,289)
	General Manager of Accounting Department of the Company
	Executive Officer and General Manager of Accounting Department of the Company
	Executive Officer and Head of Global Management of the Company
	Executive Managing Officer, Deputy Head of Administration and General Manager of Finance & Accounting Department of the Company
	Executive Managing Officer, Chief Financial Officer, Deputy Head of Administration and General Manager of Finance & Accounting Department of the Company
	Executive Managing Officer, Chief Financial Officer and Head of Finance of the Company
	Executive Managing Officer, Head of Management Control and Chief Financial Officer (CFO) of the Company
	Director (Full-time Audit & Supervisory Committee Member) of the Company (to present)
External Director (Audit & Supervisory Committee Member)	Joined Aoyama Audit Corporation April 1996 Registered as a certified public accountant (to present)	(Note) 6	1,300 (-)
	Representative of Matsumoto Accounting Firm CEO (current Finport Accounting Group CEO) (to present)
	External Audit & Supervisory Board Member (current External Director, Audit & Supervisory Committee Member) of Suzuki Co., Ltd. (to present)
	External Audit & Supervisory Board Member (External Director, Audit & Supervisory Committee Member) of Hoden Seimitsu Kako Kenkyusho Co., Ltd.
	External Audit & Supervisory Board Member of the Company
	External Director (Audit & Supervisory Committee Member) of the Company (to present)
External Director (Audit & Supervisory Committee Member)	Prosecutor, Nagoya District Public Prosecutors Office	(Note) 6	- (-)
	Registered as an attorney (belonging to the Tokyo Bar Association)
	Established Sakurazaka Law Offices, Partner (to present)
	External Audit & Supervisory Board Member of Weathernews Inc. (to present)
	Mediator of Tokyo District Court (mediation of intellectual property) (to present)
	Director of Hitotsubashi University (to present)
	Outside Audit & Supervisory Board Member (current Outside Director) of NOF CORPORATION (to present)
	External Director (Audit & Supervisory Committee Member) of the Company (to present)
			157,557
			(119,857)

(Notes)

1. The figures in parentheses () in the "Number of shares held" in the table indicate the shares to be received by the eligible persons under the stock compensation plan (as of June 1, 2023).

[Explanation of the shares to be received under the stock compensation plan]

The Company introduced a stock compensation plan for its Directors (excluding External Directors and overseas residents; hereinafter the same shall apply), etc. (hereinafter referred to as the "Plan") in FY2016. While the shares to be received by candidates under the Plan consist of (a) non-performance-linked portions, which are not linked to performance, and (b) performance-linked portions, which are linked to performance after a certain period of time, the number of shares to be received by each candidate under the Plan indicates only the points for which performance has been determined at the present time. Specifically, the number indicates the cumulative total of the points for (a) non-performance-linked portions which were granted by June 1, 2023, and the total of the points for (b) performance-linked portions which were granted by June 1, 2021. The voting rights for the shares to be received under the Plan will not be exercised until they are delivered to each candidate in the future. In addition, in order to secure funds for tax payment, shares equivalent to 30% of the shares to be received will be sold in the market, and the proceeds from the sale will be paid.

2. External Directors Yoshiko Nonogaki, Brian K. Heywood and Masayuki Abe are External Directors who are not Audit & Supervisory Committee Members. External Directors Mitsuhiro Matsumoto and Izumi Hayashi are External Directors who are Audit & Supervisory Committee Members.

3. External Director Izumi Hayashi's registered name on the family registration is Izumi Sakamoto.

4. At present, there are 16 Executive Officers. Of the 16 persons, three are Executive Managing Officers: Masanobu

Kawamoto, in charge of New Business Development; Masashi Koizumi, Company President of Life Solutions Company; and Masaya Nagaoka, Head of Management Control. The other 13 persons are Executive Officers: Choi Hyun-don, Nifco Korea Group Control Officer, President & CEO of Nifco Korea Inc.; Norihiko Murata, General Manager of ESG Promotion Office; Tsutomu Mannari, Regional CFO of Europe; Yuji Kubota, Digital Innovation Promotion Office (in charge of Manufacturing); Jin Jing-Jun, China 5 Plant Control Officer, President & CEO of Dongguan Nifco Co., Ltd.; Joan Oliveras, Europe Business Control Officer; Kumi Sano, Head of Administration; Michael Rodenberg, North America Business Control Officer, CEO of Nifco America Corporation, CEO of Nifco Central Mexico; Ken Yokota, Head of Manufacturing & CPO (Chief Production Officer); Kazuomi Sakata, Head of Production Engineering; Akihiko Hirose, Head of Quality Assurance & CQO (Chief Quality Officer); Tamotsu Sugiyama, Head of Sales; Michihiro Fukuo, Head of R&D & CTO (Chief Technology Officer).

5. One year from the conclusion of the Annual General Meeting of Shareholders held on June 22, 2023

6. Two years from the conclusion of the Annual General Meeting of Shareholders held on June 22, 2023

(ii) Status of external officers

The Company has three External Directors (excluding Directors who are Audit & Supervisory Committee Members) and two External Directors who are Audit & Supervisory Committee Members. The Company has no personal, capital, business or other interests with Yoshiko Nonogaki, Masayuki Abe, Mitsuhiro Matsumoto or Izumi Hayashi. Brian K. Heywood, an External Director (excluding Directors who are Audit & Supervisory Committee Members), is the CEO of Taiyo Pacific Partners, L.P. Taiyo Pacific Partners, L.P. holds the Company's shares and has entered into an advisory agreement with the Company for the purpose of providing advice and proposals on management and business strategies. The ratio of transaction value is less than 1% of the consolidated net sales of the Company and the corporation, and services under the advisory agreement are provided by different members of the corporation. The Company makes judgement on the independence of External Directors from it by taking into consideration the individual circumstances of each officer with reference to the independence criteria of the Tokyo Stock Exchange. As a result, the Company has determined that all five External Directors are independent, and has submitted a notification to the Tokyo Stock Exchange to that effect. At the Board of Directors meetings, all External Directors express their respective views and judgments with the interests of general shareholders in mind.

In addition to so expressing views with the interests of general shareholders in mind, the functions and roles to be fulfilled by Yoshiko Nonogaki, an External Director (excluding Directors who are Audit & Supervisory Committee Members), are to improve the quality of corporate governance at the Company by utilizing her abundant experience and insight, as she has broad insight for supervising overall management based on her business experience in the business divisions of a major company, management experience of overseas subsidiaries and experience as an external director at other listed companies. The functions and roles to be fulfilled by Brian K. Heywood, an External Director (excluding Directors who are Audit & Supervisory Committee Members), are to contribute to the enhancement of the Company's corporate value by utilizing his abundant experience and insight as an expert in corporate management and investment, and by incorporating the perspective of shareholders and investors into corporate management. The functions and roles to be fulfilled by Masayuki Abe, an External Director (excluding Directors who are Audit & Supervisory Committee Members), are to utilize his abundant experience and insight cultivated in the IT field at a major company and to promote the management of the Company in the fields related to IT and DX. The functions and roles to be fulfilled by Mitsuhiro Matsumoto, an External Director who is an Audit & Supervisory Committee Member, are to express his views with general shareholders in mind by conducting audits with a particular focus on accounting, because he has abundant knowledge and experience in auditing corporate management that he has cultivated as a certified public accountant. The functions and roles to be fulfilled by Izumi Hayashi, an External Director who is an Audit & Supervisory Committee Member, are to express her views with the interests of general shareholders in mind by conducting audits with a particular focus on compliance, because she is familiar with domestic and foreign laws as an attorney and has various kinds of experience as an Outside Director.

(iii) Interaction among supervision or audits by External Directors, internal audits, audits by the Audit & Supervisory

Committee and accounting audits, as well as relationship with the internal control department The status of supervision and audits by External Directors as of the end of the fiscal year under review is as follows. External Directors (excluding Directors who are Audit & Supervisory Committee Members) not only supervise Directors through deliberations at the Board of Directors, but also share their own information and exchange opinions with External Directors who are Audit & Supervisory Committee Members, hear opinions from the Internal Audit Department, and cooperate with the Accounting Auditor as necessary. Meanwhile, External Directors who are Audit & Supervisory Committee Members not only audit Directors through deliberations at the Board of Directors, but also examine the status of business execution of each Director separately from the Board of Directors and regularly consult with the Internal Audit Department. Further, External Directors who are Audit & Supervisory Committee Members consult and discuss with the Accounting Auditors as necessaiy, and have opportunities to consult and exchange opinions with the audit divisions of domestic and overseas subsidiaries.

(3) Status of audits

(i) Status of audits by the Audit & Supervisory Committee

a. Organization, personnel and procedures of audits by the Audit & Supervisory Committee

•	The Company has transitioned from a company with an Audit & Supervisory Board to a company with an Audit & Supervisory Committee as of June 24, 2021.
•	The Audit & Supervisory Committee consists of three members: one Director who is a full-time Audit & Supervisory Committee Member from within the Company and is well versed in the Company's finance and accounting; and two Directors who are external Audit & Supervisory Committee Members with expertise in legal affairs, finance and accounting.
•	In order to ensure sound and sustainable growth of the Company and establish a high-quality corporate governance system that lives up to social trust, the Audit & Supervisory Committee formulates and implements audit policies and audit plans in accordance with the Audit & Supervisory Committee Audit Standards established by the Audit & Supervisory Committee, and conducts audit activities in accordance with the division of duties, etc.
•	A full-time Audit & Supervisory Committee Member has been engaged in financial and accounting operations including capital policy as the Company's Chief Financial Officer from 2015 to 2021, and has considerable knowledge of finance and accounting to ensure the reliability of financial reporting.
•	Mitsuhiro Matsumoto, an External Director who is an Audit & Supervisory Committee Member, is qualified as a certified public accountant and provides a wide range of advice and recommendations on finance and accounting at the Board of Directors based on his expertise in finance and accounting.
•	Izumi Hayashi, an External Director who is an Audit & Supervisory Committee Member, is qualified as an attorney and is expected to provide advice and recommendations to ensure the validity and appropriateness of the Board of Directors' decision-making based on her expertise in legal affairs.
•	All members of the Audit & Supervisory Committee, including External Directors, strive to enhance the audit function of the Audit & Supervisory Committee and ensure the effectiveness of audits by sharing information closely with each other.
•	As for the support system of the Audit & Supervisory Committee, two staff members of the Internal Audit Department (as of the filing date of the Annual Securities Report) support Audit & Supervisory Committee Members in performing their duties.

b. Status of activities of the Audit & Supervisory Committee

•	In the fiscal year under review, the Company held 14 meetings of the Audit & Supervisory Committee. The attendance of individual Audit & Supervisory Committee Members is as follows.

(The 71st fiscal year: From April 1, 2022, to March 31, 2023)

Category	Name	Attendance at the Audit & Supervisory Committee meetings
Full-time Audit & Supervisory Committee Member	Junji Honda	Attended all 14 meetings
External Audit & Supervisory Committee Member	Toshiyuki Arai	Attended 13 of 14 meetings
External Audit & Supervisory Committee Member	Mitsuhiro Matsumoto	Attended all 14 meetings

(Note)

Toshiyuki Arai and Mitsuhiro Matsumoto are External Directors.

•	The Audit & Supervisory Committee discussed and resolved as specific contents the selection of the Chairman of the Audit & Supervisory Committee, the full-time Audit & Supervisory Committee Members, the selected Audit & Supervisory Committee Members and the specified Audit & Supervisory Committee Members, the basic audit policy and audit plan, the division of duties in the audit system, the preparation of audit reports by the Audit & Supervisory Committee, matters related to the reappointment or non-reappointment of the Accounting Auditor, the appropriateness of the audit methods and audit results of the Accounting Auditor, and matters related to the status of the development and operation of the internal control system.
•	The Audit & Supervisory Committee regularly exchanged opinions with Representative Directors and Directors to receive reports on the status of execution of duties by Directors, as well as to confirm the progress of the medium-term management plan, initiatives for the formulation of a new medium-term management plan and the management systems of overseas subsidiaries.
•	In order to conduct effective and efficient audits, the Audit & Supervisory Committee strived to enhance audits by regularly sharing and coordinating information, including three-way audits, with the Accounting Auditor and the Internal Audit Department.
•	Full-time Audit & Supervisory Committee Members, as Audit & Supervisory Committee Members selected by the Audit & Supervisory Committee, closely cooperated with the Internal Audit Department, in accordance with the basic audit policy, audit system and division of duties stipulated by the Audit & Supervisory Committee, attended meetings of the Board of Directors and the Management Committee, and inspected important approval documents. They also attended "the Risk Management Committee," "the Compliance Committee" and "the Information Security Committee," where they expressed their opinions, and, when necessary, attended as observers the Nomination, Compensation and Governance Committee, an advisory body to the Board of Directors.
•	External Directors who are Audit & Supervisory Committee Members contribute to the sound and fair management of the Company by expressing their opinions from an independent standpoint at meetings of the Board of Directors and the Audit & Supervisory Committee based on their abundant experience and deep insight in various fields such as legal affairs in general, finance and accounting, and by conducting audit activities such as hearing reports from the Accounting Auditor and holding periodic reports meetings with the Internal Audit Department.

In the fiscal year under review, we had to refrain from taking certain actions due to the effects of the COVID-19 pandemic, but we were able to conduct on-site inspections of our major overseas subsidiaries and conducted on-site inspections of some of our business sites, and this was generally in line with our original plan. As for the confirmation of the management systems of overseas subsidiaries, which is one of the important issues, in addition to the on-site inspection, we collected information on the current situation and issues mainly through reports from the Overseas Management Control, the Management Committee, and the Board of Directors, and made efforts to conduct audit activities as the Audit and Supervisory Committee.

(ii) Status of internal audits

The Auditing Department has been established as a department exclusively responsible for internal audits. In accordance with the annual audit plan, seven persons, including the General Manager of the Auditing Department, conduct audits to determine whether the Company's overall operations are being executed appropriately and efficiently. The Auditing Department reports on audits not only to the Representative Director but also to the Board of Directors. The Auditing Department also reports on audits to the Audit and Supervisory Committee and ensures the effectiveness of audits by sharing information and cooperating.

(iii) Status of accounting audits

a. Name of the audit firm

KPMG AZSA LLC

b. Continuous audit period

1985 and later

c. Certified public accountants who executed the business

Hiroshi Takasaki

Michiko Muramatsu

d. Composition of assistants for audits

The assistants for the accounting audits of the Company consist of five certified public accountants and 16 other persons.

e. Policy and reasons for selecting the audit firm

Pursuant to the provisions of the Companies Act, the Audit & Supervisory Committee makes decisions regarding the reappointment or non-reappointment of the Accounting Auditor. The Company has established the "Operational Rules for the Appointment and Dismissal of the Accounting Auditor," conducts procedures for reappointment and non- reappointment every year in accordance with the practical procedures, and comprehensively determines the appropriateness of the reappointment/non-reappointment based on evaluation criteria.

Specifically, the Audit & Supervisory Committee interviewed and evaluated the Accounting Auditor from the viewpoints of independence, quality control system, audit quality, audit system, communication, audit fees and others. The Audit and Supervisory Committee also held an interview with the Finance and Accounting Department and the Internal Audit Department regarding the evaluation and reappointment of the Accounting Auditor.

f. Evaluation of the audit firm by Audit & Supervisory Committee Members and the Audit & Supervisory Committee

The Audit & Supervisory Committee evaluated KPMG AZSA LLC comprehensively based on the evaluation criteria for the Accounting Auditor, and judged that it is appropriate to reappoint the Accounting Auditor.

(iv) Details of compensation for auditors

a. Compensation for certified public accountants, etc. involved in the audit

	Previous fiscal year		Fiscal year under review
Category	Compensation for audit services	Compensation for nonaudit services	Compensation for audit services	Compensation for nonaudit services
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)
The Company	81	-	89	-
Consolidated subsidiaries	16	-	17	-
Total	97	-	106	-

b. Compensation for the same network firms as certified public accountants, etc. involved in the audit (KPMG network firms) (excluding a.)

	Previous fiscal year		Fiscal year under review
Category	Compensation for audit services	Compensation for nonaudit services	Compensation for audit services	Compensation for nonaudit services
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)
The Company	-	22	-	3
Consolidated subsidiaries	148	20	181	18
Total	148	43	181	22

Compensation for non-audit services paid by the Company and its consolidated subsidiaries to KPMG, an entity in the same network as the Company's certified public accountants, etc. involved in the audit, is mainly for tax return preparation and advisory services.

c. Details of compensation for other important audit services

Not applicable.

d. Policy for determining compensation for auditors

It is determined after taking into consideration various conditions such as the number of audit days.

e. Reason why the Audit & Supervisory Committee gave consent to the compensation, etc. of the Accounting Auditor

The Audit & Supervisory Committee gave consent to the amount presented by the Company, as it decided that such amount was reasonable, after reviewing the appropriateness of the audit plan and the estimated audit time, and the status of the execution of duties by the Accounting Auditor, based on changes in the compensation amount in the past and a comparison of the compensation levels of other companies in the same industry.

(4) Compensation, etc. for Officers

(i) Matters pertaining to the policy for determination of the amount of compensation, etc. for officers or the calculation method thereof

The Company resolved at the meeting of the Board of Directors held on May 18, 2023, to adopt the officer nomination policies and executive compensation policy for FY2023 and beyond. The details are as follows.

[Officers' Compensation Policy]

1. Fundamental policy of corporate governance

At the Company, we desire to always be of service to all stakeholders including our employees, customers, shareholders, investors, users, business partners and local communities.

We marked the 51st anniversary of our foundation in 2018, and formulated the following new corporate philosophy with a commitment to a new stage of growth.

[Mission] - Social mission/reason for existing

Nifco generates ideas and cultivates technology to turn your expectations into excitement.

[Vision] - The way we should be to embody our Mission

Driving change with growing inventiveness

[Values] - Words embodying the uniqueness of Nifco

-This is Nifco-

Be proactive and break through

Communicate and collaborate

Challenge and innovate

Based on this fundamental policy mentioned above, we endeavor to implement corporate governance to the fullest extent as a priority issue, and to promote reinforcement of Group management.

2. Basic policy for Officers compensation

The Company shall set the following basic policy for compensation for Directors and Executive Officers (hereinafter, referred to as "Officers' compensation") based on the basic policy for corporate governance.

(1)	Officers' compensation shall be designed to contribute to our Mission: "Nifco generates ideas and cultivates technology to turn your expectations into excitement."
(2)	Officers' compensation shall be designed as an independent, objective, and transparent compensation plan that is held accountable to our stakeholders, including employees, customers, and shareholders.
(3)	Officers' compensation shall be designed to be attractive to our employees.

3. Compensation level

The Company determines the level of Officers' compensation based on the above-mentioned basic policy for Officers' compensation, taking into account the Company's management environment and after examining and analyzing the compensation levels of industry peers and major companies of the same size as the Company as the peer group each year, using an external database, etc.

Specifically, the Company considers the appropriate compensation level by referring to the level and so forth at companies included in JPX400 that have a similar operating income and market capitalization and that have introduced share-based compensation systems, as well as by taking into account the amount of dividends paid to shareholders and the maximum annual salary and the pay ratio (the gap between CEO compensation and average employee salary) of employees.

4. Compensation composition

(1) Compensation composition ratio

The compensation composition ratio for the President & Representative Director is 47% for basic compensation, 20% for bonuses and 33% for stock compensation. It is designed so that bonuses and stock compensation account for a majority of the total compensation.

Compensation for Directors who are not Audit & Supervisory Committee Members and Executive Officers consists of "basic compensation," "executive bonuses" and "stock compensation." Compensation for Independent External Directors and Directors who are Audit & Supervisory Committee Members (hereinafter referred to as "Non-Executive Directors") is only "basic compensation."

The compensation of the Chairman & Director is a consideration for the response to important management issues designated by the President and the Board of Directors and the results thereof.

(2) Outline of each compensation item

(i) Basic compensation

Basic compensation shall be determined for each executive rank according to the responsibility and be paid as fixed monthly compensation according to the role to secure excellent human resources.

(ii) Executive bonuses (annual incentive)

Bonuses shall be paid as an incentive to improve the Company's performance for a single fiscal year with the aim of providing an incentive for the Group's consolidated business performance.

Consolidated net sales and consolidated operating profit are used as evaluation indicators to strengthen the earnings capabilities of the Company's core businesses, and qualitative evaluation is also employed. The amount of bonuses shall vary from 40% to 150% at the maximum of the base amount.

The evaluation percentages of each indicator are as follows.

Indicator	President	Director	Executive Officers
Consolidated net sales	20%	20%	15%
Consolidated operating profit	70%	60%	55%
Qualitative evaluation	10%	20%	30%

* Target values shall be based on consolidated financial indicators to be announced at the beginning of each fiscal year following a resolution of the Board of Directors.

* Qualitative evaluations of the President & Representative Director shall be conducted by the Nomination, Compensation and Governance Committee, which is composed mainly of Independent External Directors.

About each KPI

• Consolidated net sales

Target values: Consolidated financial indicators to be announced at the beginning of a fiscal year following a resolution of the Board of Directors.

Performance-linked coefficient: Variable within the range of 0 to 1.5.

• Consolidated operating profit

Target values: Consolidated financial indicators to be announced at the beginning of each fiscal year following a resolution of the Board of Directors.

Performance-linked coefficient: Variable within the range of 0 to 1.5.

• Qualitative evaluation

Target values shall be set individually according to each officer's area of responsibility, and targets and evaluations shall be determined after consultation by the Nomination, Compensation and Governance Committee.

(iii) Stock compensation (medium- to long-term incentive)

The Company's shares shall be received upon retirement with the aim of further enhancing motivation to contribute to improving the business performance and corporate value in the medium to long term, and further sharing value with shareholders.Stock compensation consists of performance-linked compensation (50%) and non-performance-linked compensation (50%).

In FY2016, the Company introduced a stock compensation plan under which the Company's shares are delivered to each eligible person through a trust scheme. Specifically, eligible persons shall be granted points each year and receive the Company's shares equivalent to the number of points from the trust upon their retirement. Management of the Company's shares is entrusted to Mitsubishi UFJ Trust and Banking Corporation. In addition, in order to respond more flexibly to changes in the social environment, the Company has established a medium-term management plan every year (rolling medium-term management plan) from FY2021, and is reviewing the system to further strengthen incentives for medium- to long-term targets in light of the perspective of shareholders and investors.

Formula

[Points to be granted on June 1 each year]

(Cases where the fiscal year subject to the evaluation is the final fiscal year of the medium-term management plan)

Fixed points determined by a. below + performance-linked points determined by b. below

(Cases where the fiscal year subject to the evaluation is not the final fiscal year of the medium-term management plan) Fixed points determined by a. below

a. Fixed points (non-performance-linked portion)

Fixed points ^*1 = Base amount of stock compensation ^*2 x 50% + Average acquisition unit price of the Company's shares in the trust ^*3

b. Performance-linked points (performance-linked portion)

Base performance points ^*1 = Base amount of stock compensation ^*2 x 50% Average acquisition unit price of the Company's shares in the trust ^*3

Performance-linked points ^*1 = Cumulative value of base performance points x Performance-linked coefficient ^*4

^*1 Amounts less than one point shall be rounded up.
^*2 The base amount of share compensation shall be as shown in the table below. The executive rank of each Eligible Person under the Plan shall be based on the executive rank as of March 31 of the year to which the base date belongs, and in the case of concurrent holding of positions, the higher executive rank points shall apply.

Executive rank	Base amount of stock compensation
	(yen)
President & CEO	35,000,000
Director & Senior Managing Executive Officer	17,600,000
Senior Executive Managing Officers	14,700,000
Executive Managing Officers	10,000,000
Executive Officers	8,400,000

^*3 The average acquisition unit price of the Company's shares in the trust shall be the average acquisition unit price of the Company's shares acquired by the Trust after the extension of the trust period in the case where the trust period is extended by changing the trust agreement and making additional contribution to the trust. The average acquisition unit price is rounded to the nearest yen.
^*4 The performance-linked coefficient is as follows. Performance-linked coefficient = Coefficient (operating cash flows) x 50% + Coefficient (ROIC) x 40% + Coefficient (TSR) x 10%
^*5 With respect to overseas Executive Officers, a competitive and appropriate standard amount shall be set, with reference to the market level of each country, and be resolved by the Nomination, Compensation and Governance Committee.

• Coefficient (operating cash flows)

(Target achievement rate for the medium- to long-term management plan period (%) - 0.8) x 5

(Upper limit: 2.0, Lower limit: 0.0)

• Coefficient (ROIC)

1.00 + 0.15 x (Actual value in the final fiscal year of the medium-term plan (%) - Target value at the beginning of the medium-term plan (%)) x 100

(Upper limit: 2.0, Lower limit: 0.0)

• Coefficient (TSR)

It shall be as follows.

Ratio to TOPIX	Performance-linked coefficient
	(TSR)
150% or higher	2.0
120% or higher	1.5
100% or higher	1.0
80% or higher	0.5
Lower than 80%	0.0

* The ratio of TSR to TOPIX (including dividends) shall be calculated by comparing the closing price on the business day immediately preceding the first fiscal year of the medium-term management plan (the last day of March) with the closing price on the last day of the final fiscal year of the medium-term management plan (the last day of March). For the TSR above, an indicator including dividends shall be used. (Example) For the period of the medium-term management plan from FY2021, to FY2023, the judgment shall be made based on the TSR at the end of March 2021 and the end of March 2024.

(3) Forfeiture of compensation (Malus and clawback provisions)

In the event that the Board of Directors resolves to correct financial results due to a serious accounting error or misconduct or determines that there were serious, inappropriate acts during their terms of office, the Board of Directors may restrict the payment or claim the return of bonuses and Stock compensation after going through deliberation by the Nomination, Compensation, and Governance Committee.

5. Guidelines for holding own shares

The Company will promote holding of its own shares by Directors and Executive Officers in order to further raise their motivation to improve the Company's business performance and increase its share price from the viewpoint of shareholders.

6. Decision-making process

In order to enhance the independence, objectivity, and transparency of the details of the Officers' compensation plan, the Company established the Nomination and Compensation Committee, which is chaired by and the majority of whose members are Independent External Directors, as an advisory body to the Board of Directors on December 10, 2018. In addition, the Committee was renamed the Nomination, Compensation, and Governance Committee on October 28, 2020, in order to further strengthen our efforts for governance going forward. The Nomination, Compensation, and Governance Committee, in principle, convenes no fewer than four times a year, deliberates on the amount of compensation by individual and qualitative assessment, and provides advice and recommendations to the Board of Directors.

In order to adopt an objective viewpoint and specialized knowledge from outside the Company regarding the Officers' compensation plan, the Company shall examine the compensation level and the compensation plan, etc. taking into consideration factors such as external data, the economic environment, industry trends, and management conditions, based on advice from an external consultant appointed by the Nomination, Compensation and Governance Committee.

7. Engagement policy

The Company shall promptly disclose the details of the Officers' compensation plan to its shareholders through the Annual Securities Report, Business Report, Corporate Governance Report, Nifco Report or the corporate website, etc. that will be prepared and disclosed in accordance with various laws and regulations. In addition, the Company will actively promote engagement with institutional investors.

The Company also takes into consideration the amount of dividends paid to shareholders, the level of salaries paid to employees and so forth in determining the amount of Officers' compensation.

(ii) Total amount of compensation, etc. by officer category, total amount of compensation, etc. by type and number of eligible officers

		Total amount of compensation, etc. by type (millions of yen)
Officer category	Total amount of compensation, etc.	Fixed compensation
	(millions of yen)
Directors (excluding Audit & Supervisory Committee Members and External Directors)	250	148
Directors (Audit & Supervisory Committee Members) (excluding External Directors)	33	25
External Officers	56	56
Total	339	229

	Total amount of compensation, etc. by type (millions of yen)	Number of eligible officers
Officer category	Performance-linked compensation	Retirement benefits	Of the compensation, etc. in the left column, non-monetary compensation, etc.
				(persons)
Directors (excluding Audit & Supervisory Committee Members and External Directors)	102	-	45	3
Directors (Audit & Supervisory Committee Members) (excluding External Directors)	8	-	-	1
External Officers	-	-	-	4
Total	110	-	45	8

(Notes)

1. As of the end of the fiscal year under review, there were nine Directors (including five External Directors) and three Audit & Supervisory Committee Members (including two External Audit & Supervisory Committee Members). One External Director serving without compensation is not included in the number of eligible Directors.

2. The maximum amount of compensation for Directors who are not Audit & Supervisory Committee Members was resolved at the 69th Annual General Meeting of Shareholders held on June 24, 2021, to be 460 million yen per year (including 60 million yen for External Directors). The number of Directors who are not Audit & Supervisory Committee Members at the conclusion of the said Annual General Meeting of Shareholders was six (including three External Directors). Separately from monetary compensation, the maximum amount of performance-linked stock compensation for Directors and Executive Officers (excluding External Directors and overseas residents) through a trust was resolved at the 69th Annual General Meeting of Shareholders held on June 24, 2021, to be 400 million yen per fiscal year. The number of eligible Directors and Executive Officers under the plan immediately after the conclusion of the said Annual General Meeting of Shareholders was three and nine, respectively.

3. The maximum amount of compensation for Directors who are Audit & Supervisory Committee Members was resolved at the 69th Annual General Meeting of Shareholders held on June 24, 2021, to be 90 million yen per year. The number of Directors who are Audit & Supervisory Committee Members at the conclusion of the said Annual General Meeting of Shareholders was three.


Name	Total amount of consolidated compensation, etc.	Officer category	Company category
	(millions of yen)
Toshiyuki Yamamoto	121	Chairman & Representative Director	The Company
		Chairman & Director	Nifco Korea Inc.

	Amount of consolidated compensation, etc. by type (millions of yen)
Name	Fixed compensation	Performance- linked compensation	Retirement benefits	Of the compensation, etc. in the left column, non-monetary compensation, etc.

Toshiyuki Yamamoto	61	46	-	21
	15	-	-	-

(5) Status of shareholding

(i) Criteria and approach for classification of investment stocks

In principle, the Company shall not hold investment stocks for pure investment purposes. The Company shall hold investment stocks for purposes other than pure investment only when it judges that such shareholdings will enhance the Company's corporate value such as by maintaining and strengthening business relationships, developing new fields and deepening corporate alliances.

(ii) Investment stocks for purposes other than pure investment

a. Policy of shareholdings, methods for verifying the reasonableness of shareholdings and details of the verification by the Board of Directors, etc. concerning the appropriateness of holding individual issues As described in the preceding paragraph, the Company shall hold such stocks only when it judges that such shareholdings will enhance the Company's corporate value such as by maintaining and strengthening business relationships, developing new fields and deepening corporate alliances. For individual cross-shareholdings, the Company shall verify periodically and continuously at the Board of Directors meetings whether the purpose of holding is appropriate and whether the benefits and risks associated with holding are commensurate with the cost of capital. The Company shall reconsider and reduce the holdings of stocks if it is not considered appropriate to hold them from a comprehensive perspective. The verification results shall be also disclosed. In accordance with the "Basic Views on Corporate Governance," the Company verifies the appropriateness of its holdings and sells shares that are not reasonably held, taking into account the returns and risks of holding at the Board of Directors meetings. While we had 22 stocks worth 6.1 billion yen as of the end of March 2015, we had reduced the amount to 5 stocks worth 2.1 billion yen by the end of March 2023.

b. Number of issues and book value on the balance sheet

	Number of issues	Total book value on the balance sheet
		(millions of yen)
Unlisted stocks	13	146
Stocks other than unlisted stocks	5	2,171

(Issues for which the number of shares increased in the fiscal year under review)

	Number of issues	Total acquisition price for the increase in the number of shares	Reason for the increase in the number of shares
	(issuer)	(millions of yen)
Unlisted stocks	-	-	-
Stocks other than unlisted stocks	1	17	Periodic purchase by client shareholding associations

(Issues for which the number of shares decreased in the fiscal year under review)

	Number of issues	Total sale price for the decrease in the number of shares
	(issuer)	(millions of yen)
Unlisted stocks	-	-
Stocks other than unlisted stocks	-	-

c. Information on the number of shares, the book value on the balance sheet, etc. for each issuer of specified investment stocks and deemed holdings of stocks

Specified investment stocks

	Fiscal year ended March 31, 2023	Previous fiscal year
Issuer	Number of shares	Number of shares	Purpose of holding, overview of business alliance, quantitative holding effect and reason for the increase in the number of shares	Whether the issuer holds the Company's shares
	(thousands of shares)	(thousands of shares)
	Book value on the balance sheet	Book value on the balance sheet
	(millions of yen)	(millions of yen)
Toyota Motor Corporation	724	724	To maintain and strengthen business relationships	No
	1,361	1,609
Honda Motor Co., Ltd.	197	191	To maintain and strengthen business relationships	No
	692	669
Nissan Motor Co., Ltd.	137	137	To maintain and strengthen business relationships	No
	68	75
Mazda Motor Corporation	20	20	To maintain and strengthen business relationships	No
	25	18
Subaru Corporation	11	11	To maintain and strengthen business relationships	No
	23	21

Not applicable for deemed holdings of stocks.

d. Total book value on the balance sheet for the previous fiscal year and the fiscal year under review of investment stocks for the purpose of pure investment, as well as total dividend income, gains/losses on sales and gains/losses on valuation for the fiscal year under review

Not applicable.

V. Financial Information

1. Preparation methods of consolidated and non-consolidated financial statements

(1)

The Company's consolidated financial statements are prepared in conformity with the "Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements" (Ministry of Finance Order No. 28 of 1976).

(2)

The Company's financial statements are prepared in conformity with the "Regulation on Terminology, Forms, and Preparation Methods of Financial Statements" (Ministry of Finance Order No. 59 of 1963; hereinafter referred to as the "Regulation on Financial Statements").

The Company falls under a special company submitting financial statements and prepares financial statements pursuant to the provisions of Article 127 of the Regulation on Financial Statements.

2. Audit certification

Pursuant to the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, the Company was audited by KPMG AZSA LLC for the consolidated and non-consolidated financial statements for the fiscal year (April 1, 2022, to March 31,2023).

3. Particular efforts to ensure the appropriateness of consolidated financial statements, etc.

The Company makes particular efforts to ensure the appropriateness of consolidated financial statements, etc. Specifically, in order to establish a system to properly understand the accounting standards, etc. and to appropriately respond to changes in the accounting standards, etc., the Company has joined the Financial Accounting Standards Foundation (FASF) to obtain appropriate information. While the Group adopts the Japanese GAAP in consideration of the comparability of consolidated financial statements among companies, it is considering the establishment of a system to prepare for the application of IFRS in the future, accounting policies and the timing of its application.

1. Consolidated Financial Statements, etc.

(1) Consolidated Financial Statements

(i) Consolidated Balance Sheet

		(millions of yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	^*1 112,944	^*1 129,793
Notes receivable-trade	^*1 12,013	^*1 1,668
Electronically recorded monetary claims-operating	6,725	7,771
Accounts receivable-trade	48,869	52,262
Contract assets	626	786
Securities	757	691
Merchandise and finished goods	26,955	27,966
Work in process	3,350	3,226
Raw materials and supplies	9,043	10,020
Other	8,535	9,742
Allowance for doubtful accounts	(265)	(261)
Total current assets	219,556	243,668
Non-current assets
Property, plant and equipment
Buildings and structures	73,024	76,796
Accumulated depreciation	^*2 (25,048)	(28,677)
Buildings and structures, net	47,976	48,118
Machinery, equipment and vehicles	69,347	77,490
Accumulated depreciation	^*2 (49,014)	^*2 (57,710)
Machinery, equipment and vehicles, net	20,332	19,780
Tools, furniture and fixtures	25,383	27,307
Accumulated depreciation	^*2 (20,744)	^*2 (22,880)
Tools, furniture and fixtures, net	4,638	4,426
Molds	86,387	86,232
Accumulated depreciation	^*2 (82,046)	^*2 (81,774)
Molds, net	4,340	4,458
Land	17,698	18,502
Leased assets	116	99
Accumulated depreciation	^*2 (69)	^*2 (54)
Leased assets, net	47	44
Construction in progress	3,670	2,913
Other	4,625	6,676
Total property, plant and equipment	103,329	104,921
Intangible assets
Goodwill	735	467
Other	1,358	1,419
Total intangible assets	2,094	1,887
Investments and other assets
Investment securities	^*3 3,359	^*3 3,317
Deferred tax assets	1,630	963
Retirement benefit assets	274	1,664
Other	3,276	2,728

		(millions of yen)
	As of March 31, 2022	As of March 31, 2023
Allowance for doubtful accounts	(452)	(0)
Total investments and other assets	8,088	8,673
Total non-current assets	113,512	115,482
Total assets	333,068	359,150
Liabilities
Current liabilities
Notes and accounts payable-trade	^*1 22,258	^*1 25,076
Short-term borrowings	11,272	8,903
Current portion of long-term borrowings	3,462	10,209
Accounts payable-other	6,034	5,190
Income taxes payable	3,761	5,329
Contract liabilities	4,530	4,240
Provision for bonuses	2,226	2,517
Other	8,233	10,277
Total current liabilities	61,780	71,744
Non-current liabilities
Bonds payable	35,000	35,000
Long-term borrowings	20,661	10,345
Deferred tax liabilities	6,926	7,175
Retirement benefit liability	2,392	1,818
Other	5,430	6,938
Total non-current liabilities	70,412	61,278
Total liabilities	132,193	133,023
Net assets
Shareholders' equity
Share capital	7,290	7,290
Capital surplus	13,863	13,908
Retained earnings	193,531	208.459
Treasury shares	(18,737)	(19,691)
Total shareholders' equity	195,946	209,966
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	898	737
Deferred gains or losses on hedges	(36)	(63)
Revaluation reserve for land	6	6
Foreign currency translation adjustment	2,062	13,002
Remeasurements of defined benefit plans	(701)	(96)
Total accumulated other comprehensive income	2,228	13,585
Non-controlling interests	2,700	2,576
Total net assets	200,875	226,127
Total liabilities and net assets	333,068	359,150

(ii) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

		(millions of yen)
	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Net sales	283,777	321,771
Cost of sales	^*1 207,271	^*1 235,927
Gross profit	76,505	85,843
Selling, general and administrative expenses
Packing and transportation costs	8,730	9,614
Advertising expenses	1,442	1,560
Remuneration, salaries and allowances	12,635	13,533
Employees' bonuses	2,079	2,199
Provision for bonuses	1,118	1,326
Retirement benefit expenses	922	917
Other personnel expenses	3,920	4,528
Rent expenses	2,076	2,359
Travel and transportation expenses	605	901
Depreciation	2,565	2,672
Research and development expenses	^*1 1,202	^*1 1,960
Amortization of goodwill	317	322
Other	8,346	9,506
Total selling, general and administrative expenses	45,965	51,403
Operating profit	30.540	34,439
Non-operating income
Interest income	332	527
Gain on valuation of derivatives	-	88
Gain on valuation of investment securities	390	413
Foreign exchange gains	2,854	2,315
Subsidy income	115	545
Other	652	647
Total non-operating income	4,345	4,538
Non-operating expenses
Interest expenses	430	520
Loss on valuation of derivatives	218	-
Compensation expenses	340	117
Other	293	463
Total non-operating expenses	1,283	1,101
Ordinary profit	33,602	37,876

		(millions of yen)
	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Extraordinary income
Gain on sale of non-current assets	^*2 205	^*2 42
Gain on sale of investment securities	^*3 50	-
Insurance claim income	^*4 240	^*4 116
Total extraordinary income	497	158
Extraordinary losses
Impairment losses	-	^*5 1,903
Loss on sale and retirement of non-current assets	^*6 60	^*6 128
Loss on sale of shares of subsidiaries	^*7 744	-
Business restructuring expenses	-	^*8 317
Loss on shutdowns due to COVID-19	-	^*9 28
Total extraordinary losses	804	2,378
Profit before income taxes	33,294	35,657
Income taxes-current	8,527	12,670
Income taxes-deferred	995	855
Total income taxes	9,523	13,526
Profit	23,771	22,130
Profit attributable to
Profit attributable to owners of parent	22,959	21,170
Profit attributable to non-controlling interests	812	960
Other comprehensive income
Valuation difference on available-for-sale securities	233	(161)
Deferred gains or losses on hedges	(18)	(27)
Foreign currency translation adjustment	8,632	10,976
Remeasurements of defined benefit plans, net of tax	561	608
Total other comprehensive income	^*10 9,408	^*10 11,396
Comprehensive income	33,180	33,527
Profit attributable to
Comprehensive income attributable to owners of parent	32,250	32,526
Comprehensive income attributable to non-controlling interests	930	1,000

(iii) Consolidated Statement of Changes in Equity Fiscal year ended March 31, 2022

					(millions of yen)
	Shareholders' equity
	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
Balance at beginning of period	7,290	13,686	176,455	(13,897)	183,534
Cumulative effects of changes in accounting policies			118		118
Restated balance	7,290	13,686	176,573	(13,897)	183,653
Changes during period
Dividends of surplus			(6,001)		(6,001)
Profit attributable to owners of parent			22,959		22,959
Purchase of treasury shares				(5,171)	(5,171)
Disposal of treasury shares		176		331	507
Net changes in items other than shareholders' equity
Total changes during period	-	176	16,957	(4,839)	12,293
Balance at end of period	7,290	13,863	193,531	(18,737)	195,946

	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land
Balance at beginning of period	665	(18)	6
Cumulative effects of changes in accounting policies
Restated balance	665	(18)	6
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity	233	(18)	-
Total changes during period	233	(18)	-
Balance at end of period	898	(36)	6

	Accumulated other comprehensive income
	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income	Noncontrolling interests	Total net assets
Balance at beginning of period	(6,450)	(1,265)	(7,062)	2,177	178,649
Cumulative effects of changes in accounting policies					118
Restated balance	(6,450)	(1,265)	(7,062)	2,177	178,768
Changes during period
Dividends of surplus					(6,001)
Profit attributable to owners of parent					22,959
Purchase of treasury shares					(5,171)
Disposal of treasury shares					507
Net changes in items other than shareholders' equity	8,512	563	9,290	522	9,813
Total changes during period	8,512	563	9,290	522	22,107
Balance at end of period	2,062	(701)	2,228	2,700	200,875

Fiscal year ended March 31, 2023

					(millions of yen)
	Shareholders' equity
	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
Balance at beginning of period	7,290	13,863	193,531	(18,737)	195,946
Changes during period
Dividends of surplus			(6,241)		(6,241)
Profit attributable to owners of parent			21,170		21,170
Purchase of treasury shares				(1,328)	(1,328)
Disposal of treasury shares		45		373	419
Net changes in items other than shareholders' equity
Total changes during period	-	45	14,928	(954)	14,019
Balance at end of period	7,290	13,908	208,459	(19,691)	209,966

	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land
Balance at beginning of period	898	(36)	6
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity	(161)	(27)	-
Total changes during period	(161)	(27)	-
Balance at end of period	737	(63)	6

	Accumulated other comprehensive income
	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income	Noncontrolling interests	Total net assets
Balance at beginning of period	2,062	(701)	2,228	2,700	200,875
Changes during period
Dividends of surplus					(6.241)
Profit attributable to owners of parent					21,170
Purchase of treasury shares					(1,328)
Disposal of treasury shares					419
Net changes in items other than shareholders' equity	10,940	604	11,356	(124)	11,232
Total changes during period	10,940	604	11,356	(124)	25,252
Balance at end of period	13,002	(96)	13,585	2,576	226,127

(iv) Consolidated statement of cash flows

		(millions of yen)
	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Cash flows from operating activities
Profit before income taxes	33,294	35,657
Impairment losses	-	1,903
Depreciation	12,830	13,768
Amortization of goodwill	317	322
Insurance claim income	(240)	(116)
Increase (decrease) in allowance for doubtful accounts	(167)	(38)
Increase (decrease) in provision for bonuses	197	248
Increase (decrease) in retirement benefit liability	(271)	61
Decrease (increase) in retirement benefit asset	(274)	(1,234)
Interest and dividend income	(397)	(595)
Interest expenses	430	520
Foreign exchange losses (gains)	(2,494)	(1,645)
Loss (gain) on sale and retirement of non-current assets	(145)	86
Loss (gain) on sale of investment securities	(50)	-
Loss (gain) on valuation of investment securities	(390)	(413)
Loss (gain) on sale of shares of subsidiaries	744	-
Decrease (increase) in trade receivables	2,201	(39)
Decrease (increase) in inventories	(4,064)	1,010
Decrease (increase) in other assets	(753)	(1,368)
Increase (decrease) in trade payables	(457)	965
Increase/decrease in consumption taxes payable/consumption taxes refund receivable	(344)	(1,295)
Increase (decrease) in other liabilities	565	(637)
Other	931	251
Subtotal	41,460	47,413
Interest and dividends received	385	584
Interest paid	(474)	(495)
Proceeds from insurance income	240	116
Income taxes refund (paid)	(9,868)	(10,357)
Cash flows from operating activities	31,743	37,261
Cash flows from investing activities
Payments into time deposits	(4,060)	(13,988)
Proceeds from withdrawal of time deposits	2,046	9,777
Purchase of securities	(171)	(11)
Proceeds from sale and redemption of securities	414	188
Purchase of non-current assets	(9,614)	(8,607)
Proceeds from sale of non-current assets	378	650
Purchase of investment securities	(45)	(12)
Proceeds from sale of investment securities	826	362
Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation	739	-
Other	7	110
Cash flows from investing activities	(9,479)	(11,530)
Cash flows from financing activities
Proceeds from short-term borrowings	19,783	3,830
Repayments of short-term borrowings	(17,981)	(7,525)
Repayments of lease liabilities	(1,649)	(1,771)
Repayments of long-term borrowings	(2,529)	(3,513)
Proceeds from sale of treasury shares	507	387
Purchase of treasury shares	(5,171)	(1,328)
Dividends paid	(6,001)	(6,241)
Dividends paid to non-controlling interests	(474)	(1,255)
Cash flows from financing activities	(13,516)	(17,418)
Effect of exchange rate change on cash and cash equivalents	5,499	3,928
Net increase (decrease) in cash and cash equivalents	14,247	12,241
Cash and cash equivalents at beginning of period	95,744	109,992
Cash and cash equivalents at end of period	^*1 109,992	^*1 122,233

[Notes to Consolidated Financial Statements]

(Significant matters serving as the basis for preparing consolidated financial statements)

1. Matters related to scope of consolidation

(1) Number of consolidated subsidiaries: 52

The names of major consolidated subsidiaries are omitted here because they are stated in "4. Status of Subsidiaries and Associates" in "I. Company Overview."

•

Companies included in the scope of consolidation due to new incorporation in the fiscal year under review

	Nifco Europe GmbH
	Nifco Germany doo Subotica

(2) Names of non-consolidated subsidiaries and reasons for exclusion from the scope of consolidation Breezeway Capital Inc.

The non-consolidated subsidiary is excluded from the scope of consolidation because it is small in size, and its total assets, net sales, profit (amount corresponding to equity) and retained earnings (amount corresponding to equity) have only a minor impact on the consolidated financial statements and it is not significant as a whole.

2. Matters related to application of the equity method

(1) Number of associates accounted for by the equity method: 1

The names of associates accounted for by the equity method are omitted here because they are stated in "4. Status of Subsidiaries and Associates" in "1. Company Overview."

(2) The non-consolidated subsidiary not accounted for by the equity method (Breezeway Capital Inc.) is excluded from the scope of application of the equity method because, even if it is excluded from the scope of application of the equity method, its impact on the consolidated financial statements is minimal and it is not significant as a whole in terms of profit (amount corresponding to equity) and retained earnings (amount corresponding to equity).

(3) For companies accounted for by the equity method whose closing date differs from the consolidated closing date, the financial statements for their respective fiscal years are used.

3. Matters related to fiscal years, etc. of consolidated subsidiaries

Subsidiaries whose closing date differs from the consolidated closing date (March 31) are as follows.

Companies whose closing date is December 31

	Nifco America Corporation
	Nifco Korea USA Inc.
	Nifco U.K. Ltd.
	Nifco Poland Sp.z o.o.
	Nifco Germany GmbH
	Shanghai Nifco Plastic Manufacturer Co., Ltd.
	Dongguan Nifco Co., Ltd.
	Tifco (Dongguan) Co., Ltd.
	Beijing Nifco Co., Ltd.
	Nifco (HK) Ltd.
	Nifco Taiwan Corporation
	Nifco Korea Inc.
	Nifco (Thailand) Co.,Ltd.
	Union Nifco Co., Ltd.
	Nifco Manufacturing (Malaysia) Sdn. Bhd.
	Nifco Vietnam Ltd.
	Simmons Bedding & Furniture (HK) Limited.
	29 other companies

The financial statements as of the closing date are used in preparing consolidated financial statements. However, significant transactions that occurred during the period from January 1, 2023, to the consolidated closing date of March 31, 2023, have been adjusted as necessary for consolidation.

4. Matters related to accounting policies

(1) Valuation standards and methods for significant assets

(i) Securities

a. Held-to-maturity bonds

Stated at amortized cost (straight-line method).

b. Available-for-sale securities

Those other than stocks, etc. with no market prices

Stated at fair value (with any unrealized gains or losses being reported directly to net assets and the cost of any securities sold being calculated mainly by the moving average method).

Stocks, etc. with no market prices

Stated at cost determined mainly by the moving average method.

(ii) Derivatives

Stated at fair value.

(iii) Inventories

a. Merchandise, finished goods, work in process, raw materials and supplies (excluding inventories related to molds)

Stated at cost determined mainly by the periodic average method (with balance sheet values reflecting write-downs for decreased profitability).

b. Inventories related to molds

Stated at cost determined by the specific identification method (with balance sheet values reflecting write-downs for decreased profitability).

(2) Depreciation method for significant depreciable assets

(i) Property, plant and equipment (excluding leased assets)

Depreciated mainly by the straight-line method.

The principal useful lives are as follows.

Buildings and structures, net	1 to 50 years
Machinery, equipment and vehicles, net	2 to 20 years
Tools, furniture and fixtures, net	1 to 20 years
Molds, net	1 to 11 years

(ii) Intangible assets (excluding leased assets)

Amortized over the estimated economic useful lives.

Software for internal use is amortized by the straight-line method over its internal useful life (five years).

(iii) Leased assets

The straight-line method is applied with estimated useful lives equal to lease terms and zero residual values.

(3) Basis for significant provisions

(i) Allowance for doubtful accounts

To prepare for possible credit losses on trade receivables and loans receivable, an estimated uncollectible amount is provided based on the historical bad debt ratio for general receivables and in consideration of the individual collectibility for specific receivables such as doubtful receivables.

(ii) Provision for bonuses

The Company and some of its consolidated subsidiaries make a provision for bonuses payable to employees based on the estimated payments.

(4) Method of accounting for retirement benefits

In calculating retirement benefit obligations, the method of attributing the estimated amount of retirement benefits to the period until the end of the fiscal year under review is mainly based on the benefit formula standard.

Prior service costs are amortized on a straight-line basis over a certain number of years within the average remaining service period of employees from the fiscal year in which they are incurred. For certain consolidated subsidiaries, they are immediately expensed as incurred.

Actuarial gains and losses are amortized on a straight-line basis over a certain number of years (10 years) within the average remaining service period of employees from the fiscal year in which they are incurred. For certain consolidated subsidiaries, they are immediately expensed as incurred or amortized on a straight-line basis over a period of 5 to 10 years from the following fiscal year in which they are incurred.

Unrecognized actuarial gains and losses and unrecognized prior service costs are recorded as remeasurements of defined benefit plans in accumulated other comprehensive income under net assets after adjusting for tax effects.

In calculating retirement benefit liabilities and retirement benefit expenses, certain consolidated subsidiaries apply the simplified method whereby the benefits payable upon the voluntary retirement of all employees at the end of the period are regarded as retirement benefit obligations.

(5) Basis for recognition of significant revenues and expenses

The main performance obligations of the Company and its consolidated subsidiaries relating to revenue from contracts with customers in their principal businesses and the normal point in time at which such obligations are fulfilled (the normal point in time at which revenue is recognized) are as follows.

(i) Industrial plastic parts & components

In the Industrial plastic parts & components business, the Company mainly manufactures and sells industrial plastic fasteners, plastic precision molded parts, etc., and provides customers with parts used in the automobile and home appliance industries.

For the sale of these products, based on sales contracts with customers, the Company identifies the delivery of the products as performance obligations, and determines that customers acquire control of the products at the time of delivery in principle and that the performance obligations are fulfilled at a point in time. Therefore, revenue is recognized at the time of delivery of the products. Performance obligations for which transaction prices are allocated are sold independently.

In calculating transaction prices, revenue is recognized in the amount of the consideration promised in contracts with customers after deducting discounts, etc.

The amount of the consideration does not include a significant financing component and has not been adjusted. Consideration for performance obligations is generally received within one year based on the point in time at which the performance obligations to customers are fulfilled and the customers' payment terms.

In the case of pay-for-value transactions that fall under a repurchase agreement, inventories are recognized for the payables remaining in the payee as financial transactions, and "other current liabilities" are recognized in the amount equivalent to the value of inventories at the end of the period for the payables remaining in the payee. For pay-for-value transactions, only the amount equivalent to processing charges is recognized as revenue.

(ii) Bedding & furniture

In the Bedding & furniture business, the Company manufactures and sells beds as well as purchases and sells bedding products and furniture, and supplies them to mass retailers, specialty stores, department stores and hotels, etc.

For the sale of these products and/or merchandise, based on sales contracts with customers, the Company identifies the delivery of the products and/or merchandise as performance obligations, and determines that customers acquire control of the products and/or merchandise at the time of delivery in principle and that the performance obligations are fulfilled at a point in time. Therefore, revenue is recognized at the time of delivery of the products and/or merchandise. Performance obligations of transaction prices are usually sold independently.

In calculating transaction prices, revenue is recognized in the amount of the consideration promised in contracts with certain customers after deducting promotion expenses, etc.

In the case of certain pay-for-value transactions, inventories are recognized for the payables remaining in the payee as financial transactions, and "other current liabilities" are continuously recognized for the amount equivalent to the value of inventories at the end of the period for the payables remaining in the payee.

(6) Basis for translation of significant foreign currency-denominated assets or liabilities into Japanese currency

Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot exchange rates prevailing at the closing date, and any translation differences are recognized as gains or losses. Assets and liabilities of overseas subsidiaries are translated into Japanese yen at the spot exchange rate at the closing date, income and expenses are translated at the average exchange rate during the period, and any translation differences are included in non-controlling interests and foreign currency translation adjustment under net assets.

(7) Significant hedge accounting method

(i) Hedge accounting method

Deferred hedge accounting is applied. In addition, the appropriation treatment is applied for hedges of foreign exchange fluctuation risks if the requirements for the treatment are met, and the special treatment is applied for interest rate swaps if the requirements for the treatment are met.

(ii) Hedging instruments and hedged items

Hedging instruments and hedged items for which hedge accounting was applied in the fiscal year under review are as follows.

	Hedging instruments: Currency swaps and interest rate swaps
	Hedged items: Loans receivable

(iii) Hedging policy

The Company hedges foreign exchange fluctuation risks and interest rate fluctuation risks mainly in accordance with its internal rules, the "Rules on Handling Derivatives." Consolidated subsidiaries obtain approval from the Company in accordance with the Rules on the Authority of Domestic Subsidiaries and Associates and the Rules on the Authority of Overseas Subsidiaries and Associates.

(iv) Evaluation method of hedge effectiveness

The effectiveness is evaluated based on the provisions of the "Practical Guidelines on Accounting Standards for Financial Instruments" (Japanese Institute of certified public accountants).

However, the evaluation of hedge effectiveness is omitted for transactions for which the special treatment or the appropriation treatment prescribed in Accounting Standards for Financial Instruments, etc. is applied as hedge accounting treatment.

(8) Amortization method and amortization period of goodwill

Goodwill is amortized on a straight-line basis over the estimated benefit period.

(9) Scope of cash and cash equivalents in the consolidated statement of cash flows

Cash and cash equivalents consist of cash on hand, readily available deposits and readily marketable short-term investments bearing an insignificant risk of price fluctuation with original maturities not exceeding three months.

(10) Other significant matters for preparing consolidated financial statements

Application of tax effect accounting for transition from consolidated tax payment system to non-consolidated tax payment system

Some consolidated subsidiaries had previously applied the consolidated tax payment system, but in the previous fiscal year, they submitted a "Notification for Not Transferring to the Group Tax-Sharing System" to the competent district director of the tax office. Therefore, the Company transfers from the consolidated tax payment system to the nonconsolidated tax payment system from the fiscal year under review. Based on the treatment in Paragraph 33 of the "Practical Solution on the Accounting and Disclosure Under the Group Tax-Sharing System" (ASBJ Practical Issues Task Force No. 42, August 12, 2021), tax effect accounting has been applied with the assumption that the non-consolidated tax payment system is applied from the fiscal year under review.

(Significant accounting estimates)

(Estimates of impairment losses on non-current assets)

Fiscal year ended March 31, 2022

(1) Amount recorded in the consolidated financial statements for the previous fiscal year

Nifco Yancheng Co., Ltd. Book value of non-current assets: 2,483 million yen As a result of judging the recognition of impairment losses for asset groups determined to have indications of impairment, no impairment loss was recognized in the previous fiscal year.

(2) Information on significant accounting estimates for identified items

The Group determines whether it is necessary to recognize impairment losses on non-current assets if there are indications of impairment. The major indicators of impairment include continued losses or negative cash flows from operating activities, changes in the scope or method of use that significantly reduce the recoverable amount, a significant deterioration in the management environment and a significant decline in market prices. In the application of impairment accounting, assets are grouped by the smallest unit that generates generally independent cash flows. If the recoverable amount of a non-current asset is found to be less than its carrying amount as a result of an impairment test, the carrying amount is reduced to the recoverable amount and the reduction is recorded as an impairment loss. In the previous fiscal year, an impairment test was conducted on a consolidated subsidiary, Nifco Yancheng Co., Ltd., which was determined to have indications of impairment due to a significant deterioration in the management environment resulting from the restructuring of its production system in China by a Korean automobile manufacturer, one of its customers. In the judgment, the fair value less cost of disposal was estimated by calculating based on the appraisal value by an external expert, and no impairment loss was recognized because the fair value less cost of disposal exceeded the carrying amount of non- current assets (2,483 million yen).

(Estimates of impairment losses on non-current assets)

Fiscal year ended March 31, 2023

(1) Amount recorded in the consolidated financial statements for the fiscal year under review

Nifco Yancheng Co., Ltd. Book value of non-current assets: 2,076 million yen, Impairment loss: 537 million yen Nifco KTW America Corporation Book value of non-current assets: 3,445 million yen, Impairment loss: 1,065 million yen.

(2) Information on significant accounting estimates for identified items

The Group determines whether it is necessary to recognize impairment losses on non-current assets if there are indications of impairment. Nifco Yancheng Co., Ltd. applies international Financial Reporting Standards. The major indicators of impairment include continued losses or negative cash flows from operating activities, changes in the scope or method of use that significantly reduce the recoverable amount, a significant deterioration in the management environment and a significant decline in market prices. In the application of impairment accounting, assets are grouped by the smallest unit that generates generally independent cash flows. If the recoverable amount of a non-current asset is found to be less than its carrying amount as a result of an impairment test, the carrying amount is reduced to the recoverable amount and the reduction is recorded as an impairment loss. The non-current assets of Nifco Yancheng Co., Ltd. have indications of impairment due to the significant deterioration in the management environment resulting from the restructuring of the production system in China by a Korean automobile manufacturer, one of its customers. For this reason, we have conducted a recoverability test for the non-current assets in the fiscal year under review. As a result, the book value of the non-current assets was determined to be uncollectible; thus, the difference between the book value and the fair value of the non-current assets (537 million yen) is recognized as an impairment loss. The fair value used to measure impairment losses was estimated by calculating based on the appraisal value. As the selection of the valuation method and conditions for calculating the appraisal value requires a high level of expertise, an external expert is employed. In addition, due to changes in the real estate market and other factors, additional impairment losses may be recognized in the consolidated statement of income and consolidated statement of comprehensive income for the following fiscal year and thereafter.

Nifco KTW America Corporation (hereinafter "KWA") applies U.S. GAAP. If an indication of impairment is identified and the total amount of undiscounted future cash flows from the asset group is less than the book value, the difference between the book value and fair value is recognized as an impairment loss. KWA's profitability has deteriorated significantly due to delays in reflecting higher personnel expenses, etc. in product prices and a slow improvement in the production yield, which resulted in an indication of impairment in its non-current assets. For this reason, we have conducted a recoverability test for the non-current assets in the fiscal year under review. As a result, the total amount of undiscounted future cash flows from the asset group is expected to be less than the book value, and the fair value is also less than the book value; thus, the difference between the book value and the fair value (1,065 million yen) is recognized as an impairment loss.

The fair value used to measure impairment losses was estimated by calculating based on the appraisal value. As the selection of the valuation method and conditions for calculating the appraisal value requires a high level of expertise, an external expert is employed. In addition, due to changes in the real estate market and other factors, additional impairment losses may be recognized in the consolidated statement of income and consolidated statement of comprehensive income for the following fiscal year and thereafter.

(Changes in accounting policies)

(Application of the U.S. Financial Accounting Standards Board, Accounting Standards Codification (ASC) No. 842, "Leases")

Overseas subsidiaries that adopt U.S. GAAP have applied ASC No. 842 "Leases" from the fiscal year under review. In accordance with the standard, in principle, a lessee records all leases as assets and liabilities in the consolidated balance sheet.

In applying this standard, we follow the transitional treatment and adopt the method of recognizing the cumulative effect of changes in accounting policies on the first day of the application.

As a result of applying this standard, "leased assets, net" decreased by 91 million yen and "other" under property, plant and equipment increased by 709 million yen in the fiscal year under review. "Other" under current liabilities and "other" under non-current liabilities increased by 367 million yen and 426 million yen, respectively. In consolidated statements of cash flows, cash outflows from operating activities decreased by 18 million yen, and cash outflows from financing activities increased by 18 million yen.

The impact on profit and loss for the fiscal year under review is minimal.

(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)

The Company has applied the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No. 31, June 17, 2021) from the beginning of the fiscal year under review, and has decided to prospectively apply the new accounting policies set forth in the Implementation Guidance on Accounting Standard for Fair Value Measurement in accordance with the transitional treatment prescribed in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement. The impact of this change on the consolidated financial statements is immaterial. Regarding notes to investment trust in "Matters related to the breakdown, etc. of fair value of financial instruments by level" in the notes to "Financial instruments," information of the previous fiscal year is omitted based on Paragraph 27-3 of the Implementation Guidance on Accounting Standard for Fair Value Measurement.

(Unapplied accounting standards, etc.)

Not applicable.

(Changes in presentation)

(Consolidated statement of income and statement of comprehensive income)

"Subsidy income," which was included in "Other" under "Non-operating income" in the previous fiscal year, is stated independently from the fiscal year under review due to its increased financial significance.

As a result, "Other" of 767 million yen, which was presented in "Non-operating income" in the consolidated statement of income and statement of comprehensive income for the previous fiscal year, is reclassified to "Subsidy income" of 115 million yen and "Other" of 652 million yen.

(Additional Information)

(Executive stock compensation plan)

The Company introduced a stock compensation plan for Directors, etc. (hereinafter referred to as the "Plan") on August 22, 2016, for the purpose of raising awareness of the need to help improve business performance and enhance corporate value of the Company in the medium to long term. As the Plan was valid until August 31, 2019, the Company resolved at the Board of Directors meeting held on May 20, 2019, to submit a proposal for the continuation and partial revision of the Plan to the 67th Annual General Meeting of Shareholders held on June 21, 2019, and the proposal was approved at the same Annual General Meeting of Shareholders.

Along with the transition to a company with an Audit & Supervisory Committee, the Company resolved at the Board of Directors meeting held on May 20, 2021, to submit a proposal for the continuation and partial revision of the Plan after abolishing the remuneration limits at that time for Directors and Executive Officers and setting the remuneration limits based on the Plan for Directors and Executive Officers who are not Audit & Supervisory Committee Members (excluding External Directors and overseas residents) to the 69th Annual General Meeting of Shareholders held on June 24, 2021, and the proposal was approved at the same Annual General Meeting of Shareholders.

(1) Overview of transactions

The Plan adopts a scheme called a Board Incentive Plan (BIP) Trust (hereinafter referred to as "BIP Trust"). The BIP Trust is an incentive plan for officers based on the performance-linked stock compensation (Performance Share) plan and the restricted stock compensation (Restricted Stock) plan in the United States, and the Company's shares acquired by the BIP Trust and the money equivalent to the Company's shares converted into cash are granted and paid to Directors, etc. in principle at the time of their retirement according to their executive ranks, the achievement level of performance targets and others.

Voting rights of the Company Shares held within the Trust shall not be exercised throughout the trust period in order to ensure neutrality to management.

(2) The Company' s shares remaining in the trust

The Company's shares remaining in the trust are recorded as treasury shares in the net assets section at the carrying amount in the trust (excluding the amount of ancillary expenses). The carrying amount and number of shares of treasury stock were 1,250 million yen and 413,221 shares in the previous fiscal year, and 1,250 million yen and 413,221 shares in the fiscal year under review.

(Employee stock compensation plan)

(1) Overview of transactions

No burden is imposed on employees since the funds for the acquisition of the Company's shares to be acquired by the trust are entirely contributed by the Company.

(2) The Company's shares remaining in the trust

The Company's shares remaining in the trust are recorded as treasury shares in the net assets section at the carrying amount in the trust (excluding the amount of ancillary expenses). The carrying amount and number of shares of treasury stock were 138 million yen and 41,200 shares in the previous fiscal year, and 161 million yen and 49,739 shares in the fiscal year under review.

(Consolidated balance sheet)

*1 Assets pledged as collateral are as follows.

	As of March 31, 2022	As of March 31, 2023
Cash and deposits	54 million yen	48 million yen
Notes receivable-trade	112	222
Total	167	270

Collateralized debts are as follows.

	As of March 31, 2022	As of March 31, 2023
Notes payable-trade	166 million yen	268 million yen

*2 Accumulated depreciation of property, plant and equipment includes accumulated impairment.

*3 Those related to associates are as follows.

	As of March 31, 2022	As of March 31, 2023
Investment securities (shares)	54 million yen	54 million yen

(Consolidated statement of income and statement of comprehensive income)

*1 Research and development expenses included in manufacturing expenses for the period and general and administrative expenses are as follows.

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Manufacturing expenses for the period	1,712 million yen	1,742 million yen
General and administrative expenses	1,202	1,960
Total	2,915	3,702

*2 Gain on sale of non-current assets

Fiscal year ended March 31, 2022

It is mainly due to the sale of land, buildings and structures.

Fiscal year ended March 31, 2023

It is mainly due to the sale of land, buildings and structures.

*3 Gain on sale of investment securities

Fiscal year ended March 31, 2022

It is due to the sale in accordance with the policy for cross-shareholdings.

Fiscal year ended March 31, 2023

Not applicable.

*4 Insurance claim income

Fiscal year ended March 31, 2022

It is proceeds from insurance income for the fire accident that occurred in February 2020 at Nifco Germany GmbH, an overseas consolidated subsidiary.

Fiscal year ended March 31, 2023

It is proceeds from insurance income for the fire accident that occurred in February 2020 at Nifco Germany GmbH, an overseas consolidated subsidiary.

*5 Impairment losses Fiscal year ended March 31, 2022

Not applicable.

Fiscal year ended March 31, 2023

The Group recorded impairment losses on the following assets and asset groups.

Location	Application	Class	Impairment loss amount
Nifco (Chongqing) Limited Liability Company	Industrial plastic parts & components	Buildings and structures, Other in Investments and other assets, etc.	300 million yen
Nifco Yancheng Co., Ltd.	Industrial plastic parts & components	Machinery, equipment and vehicles, molds, etc.	537 million yen
Nifco KTW America Corporation	Industrial plastic parts & components	Machinery, equipment and vehicles, construction in progress, etc.	1,065 million yen

Since the business assets of Nifco (Chongqing) Limited Liability Company were determined to be sold due to the restructuring of the production system in the plastic business for Korean automobiles in China, their book values were reduced to recoverable amounts, and the reduction was recorded as an impairment loss (300 million yen) in extraordinary losses. It consists of buildings and structures of 257 million yen, and other in investments and other assets, etc. of 42 million yen.

The recoverable amount is measured at fair value and is calculated based on the estimated sales amount under the contract.

Regarding the business assets of Nifco Yancheng Co., Ltd., their book values were reduced to recoverable amounts due to its poor performance in the wake of deteriorating business conditions, and the reduction was recorded as an impairment loss (537 million yen) in extraordinary losses. It mainly consists of machinery, equipment and vehicles of 296 million yen, and molds of 164 million yen.

Recoverable value is measured at fair value.

Regarding the business assets of Nifco KTW America Corporation, their book values were reduced to recoverable amounts because the asset group is no longer expected to be profitable, and the reduction was recorded as an impairment loss (1,065 million yen) in extraordinary losses. It mainly consists of machinery, equipment and vehicles of 625 million yen, and construction in progress of 271 million yen.

Recoverable value is measured at fair value.

*6 Loss on sale and retirement of non-current assets

Fiscal year ended March 31, 2022

It is mainly due to the disposal of molds, machinery and equipment, etc.

Fiscal year ended March 31, 2023

It is mainly due to the disposal of molds, machinery and equipment, etc.

*7 Loss on sale of shares of subsidiaries

Fiscal year ended March 31, 2022

A loss was recorded due to the sale of shares of Nifco Products Espana, S.L.U., an overseas consolidated subsidiary, in November 2021.

Fiscal year ended March 31, 2023

Not applicable.

*8 Business restructuring expenses

Fiscal year ended March 31, 2022

Not applicable.

Fiscal year ended March 31, 2023

Expenses related to the implementation of business restructuring measures at some of the sites of the overseas consolidated subsidiaries in the plastic business in China are recorded as extraordinary losses.

*9 Loss on shutdowns due to COVID-19

Fiscal year ended March 31, 2022

Not applicable.

Fiscal year ended March 31, 2023

At the Group's overseas consolidated subsidiaries, personnel expenses and depreciation for a period in which operations were suspended at some production bases in China in response to requests from local governments to prevent the spread of COVID-19 were recorded as extraordinary losses.

*10 Reclassification adjustments and tax effects of other comprehensive income

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Valuation difference on available-for-sale securities:
Amount accrued during the period	285 million yen	(232) million yen
Reclassification adjustments	50	-
Before tax effect adjustments	335	(232)
Tax effects	(102)	70
Valuation difference on available-for-sale securities	233	(161)
Deferred gains or losses on hedges:
Amount accrued during the period	(30) million yen	(89) million yen
Reclassification adjustments	7	55
Before tax effect adjustments	(23)	(34)
Tax effects	5	7
Deferred gains or losses on hedges	(18)	(27)
Foreign currency translation adjustment:
Amount accrued during the period	8,828 million yen	10,967 million yen
Reclassification adjustments	(192)	-
Before tax effect adjustments	8,636	10,967
Tax effects	(4)	8
Foreign currency translation adjustment	8,632	10,976
Remeasurements of defined benefit plans, net of tax:
Amount accrued during the period	401 million yen	706 million yen
Reclassification adjustments	280	182
Before tax effect adjustments	681	889
Tax effects	(120)	(280)
Remeasurements of defined benefit plans, net of tax	561	608
Total other comprehensive income	9,408	11,396

(Consolidated statement of changes in equity)

Fiscal year ended March 31, 2022

1. Matters related to the class and total number of issued shares and the class and number of treasury shares

	Number of shares at the beginning of the fiscal year under review	Increase in number of shares during the fiscal year under review	Decrease in number of shares during the fiscal year under review	Number of shares at the end of the fiscal year under review
	(shares)	(shares)	(shares)	(shares)
Issued shares
Common stock (Note 1)	107,508,954	-	-	107,508,954
Total	107,508,954	-	-	107,508,954
Treasury shares
Common stock (Notes 1, 2, 3, 4)	5,959,585	1,518,150	140,317	7,337,418
Total	5,959,585	1,518,150	140,317	7,337,418

(Notes)

1. The number of shares at the beginning of the fiscal year under review includes 291,538 shares of the Company held by the executive compensation BIP trust account and 41,200 shares of the Company held by the stock grant ESOP trust account.

2. The increase in the number of treasury shares of common stock of 1,518,150 shares was an increase of 1,387,000 shares through the market purchase of treasury shares based on the resolution of the Board of Directors, an increase of 131,000 shares through the acquisition of the Company's shares by the executive compensation BIP trust account and an increase of 150 shares through the purchase of shares less than one unit.

3. The decrease of 140,317 shares in the number of treasury shares of common stock was a decrease of 131,000 shares due to the transfer of the Company's shares to the executive compensation BIP trust account and a decrease of 9,317 shares due to the stock grant from the executive compensation BIP trust account.

4. The number of shares at the end of the fiscal year under review includes 413,221 shares of the Company held by the executive compensation BIP trust account and 41,200 shares of the Company held by the stock grant ESOP trust account.

2. Matters related to dividends

(1) Dividends paid

(Resolution)	Class of shares	Total amount of dividends	Dividends per share	Record date	Effective date
		(millions of yen)	(yen)
Annual General Meeting of Shareholders held on June 24, 2021	Common stock	2,852	28	March 31, 2021	June 25, 2021
Board of Directors meeting held on October 29, 2021	Common stock	3,148	31	September 30, 2021	November 29, 2021

(Notes)

1. The total amount of dividends resolved at the Annual General Meeting of Shareholders held on June 24, 2021, includes dividends of 8 million yen to the executive compensation BIP trust account and 1 million yen to the stock grant ESOP trust account.

2. The total amount of dividends resolved by the Board of Directors meeting held on October 29, 2021 includes 12 million yen to the executive compensation BIP trust account and 1 million yen to the stock grant ESOP trust account.

(2) Dividends whose record date belongs to the fiscal year under review and whose effective date belongs to the following fiscal year:

(Resolution)	Class of shares	Total amount of dividends	Source of dividends
		(millions of yen)
Annual General Meeting of Shareholders held on June 23, 2022	Common stock	3,119	Retained earnings

(Resolution)	Dividends per share	Record date	Effective date
	(yen)
Annual General Meeting of Shareholders held on June 23, 2022	31	March 31, 2022	June 24, 2022

(Note)

The total amount of dividends includes 12 million yen to the executive compensation BIP trust account and 1 million yen to the stock grant ESOP trust account.

Fiscal year ended March 31, 2023

1. Matters related to the class and total number of issued shares and the class and number of treasury shares

	Number of shares at the beginning of the fiscal year under review	Increase in number of shares during the fiscal year under review	Decrease in number of shares during the fiscal year under review	Number of shares at the end of the fiscal year under review
	(shares)	(shares)	(shares)	(shares)
Issued shares
Common stock (Note 1)	107,508,954	-	-	107,508,954
Total	107,508,954	-	-	107,508,954
Treasury shares
Common stock (Notes 1, 2, 3, 4)	7,337,418	383,843	143,348	7,577,913
Total	7,337,418	383,843	143,348	7,577,913

(Notes)

1. The number of shares at the beginning of the fiscal year under review includes 413,221 shares of the Company held by the executive compensation BIP trust account and 41,200 shares of the Company held by the stock grant ESOP trust account.

2. The increase in the number of treasury shares of common stock of 383,843 shares was an increase of 355,800 shares through the market purchase of treasury shares based on the resolution of the Board of Directors, an increase of 27,800 shares through the acquisition of the Company' s shares by the stock grant ESOP trust account and an increase of 243 shares through the purchase of shares less than one unit.

3. The decrease in the number of treasury shares of common stock of 143,348 shares was a decrease of 27,800 shares through the transfer of the Company' s shares to the stock grant ESOP trust account, a decrease of 94,490 shares through the disposal of the Company' s shares to Nifco Employee Stock Ownership Association, a decrease of 19,261 shares through the stock grant from the stock grant ESOP trust account, and a decrease of 1,797 shares through the transfer of the portion of treasury shares (the Company' s shares) attributable to the Company, which were owned by Nichiei Seiki Co., Ltd., the associate accounted for by the equity method.

4. The number of shares at the end of the fiscal year under review includes 413,221 shares of the Company held by the executive compensation BIP trust account and 49,739 shares of the Company held by the stock grant ESOP trust account.

2. Matters related to dividends

(1) Dividends paid

(Resolution)	Class of shares	Total amount of dividends	Dividends per share	Record date	Effective date
		(millions of yen)	(yen)
Annual General Meeting of Shareholders held on June 23, 2022	Common stock	3,119	31	March 31, 2022	June 24, 2022
Board of Directors meeting held on October 28, 2022	Common stock	3,122	31	September 30, 2022	November 28, 2022

(Notes)

1. The total amount of dividends resolved at the Annual General Meeting of Shareholders held on June 23, 2022, includes dividends of 12 million yen to the executive compensation BIP trust account and 1 million yen to the stock grant ESOP trust account.

2. The total amount of dividends resolved by the Board of Directors meeting held on October 28, 2022, includes 12 million yen to the executive compensation BIP trust account and 0 million yen to the stock grant ESOP trust account.

(2) Dividends whose record date belongs to the fiscal year under review and whose effective date belongs to the following fiscal year:

(Resolution)	Class of shares	Total amount of dividends	Source of dividends
		(millions of yen)
Annual General Meeting of Shareholders held on June 22, 2023	Common stock	3,313	Retained earnings

(Resolution)	Dividends per share	Record date	Effective date
	(yen)
Annual General Meeting of Shareholders held on June 22, 2023	33	March 31, 2023	June 23, 2023

(Note)

The total amount of dividends includes 13 million yen to the executive compensation BIP trust account and 1 million yen to the stock grant ESOP trust account.

(Consolidated statement of cash flows)

*1 Relationship between the ending balance of cash and cash equivalents and the amounts of items stated in the consolidated balance sheet

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Cash and deposits	112,944 millions of yen	129,793 millions of yen
Time deposits with original maturities of more than three months	(3,535)	(8,204)
Securities that are short-term investments within three months	583	645
Cash and cash equivalents	109,992	122,233

(Lease transactions)

Operating lease transactions

Future lease payments on non-cancelable operating lease transactions

		(millions of yen)
	As of March 31, 2022	As of March 31. 2023
Within 1 year	274	5
After 1 year	634	5
Total	909	10

(Financial instruments)

1. Matters concerning the status of financial instruments

(1) Policy on financial instruments

The Group procures part of the funds necessary mainly for capital investment by borrowing from banks and issuing bonds. Funds requiring liquidity are invested mainly in checkable deposits, and funds that can be invested in the medium to long term are invested in bonds and time deposits. The Group uses derivatives to avoid the risks described below, and will not engage in speculative transactions.

(2) Details of financial instruments and associated risks

Trade receivables, including notes receivable-trade, electronically recorded monetary claims-operating and accounts receivable-trade, are exposed to customers' credit risks. Trade receivables denominated in foreign currencies that arise when conducting business overseas are exposed to foreign exchange fluctuation risks.

Securities and investment securities are mainly held-to-maturity bonds, government bonds, stocks of companies with business relationships and investments in investment partnerships, etc., and bonds and listed stocks are exposed to market price fluctuation risks.

Trade payables, including notes and accounts payable-trade, and accounts payable-other, are mostly due within one year. Certain trade payables denominated in foreign currencies are exposed to foreign exchange fluctuation risks.

Borrowings and bonds are mainly for the purpose of raising funds for capital investment, and the redemption date is up to six years after the closing date. Some of them are exposed to interest rate fluctuation risks, which are hedged using derivatives (currency swaps and interest rate swaps).

Derivatives include currency options, currency swaps and forward exchange contracts that aim to hedge the risks of fluctuations in exchange rates associated with foreign currency-denominated receivables and payables, and interest rate swaps that aim to hedge the risks of fluctuations in interest rates payable associated with borrowings. For hedging instruments and hedged items, hedging policy, and evaluation method of hedge effectiveness, etc. concerning hedge accounting, please refer to "(7) Significant hedge accounting method" in "4. Matters related to accounting policies" above.

(3) Risk management system for financial instruments

(i) Management of credit risks (risks associated with business partners ' non-performance)

With regard to trade receivables and others, the Company has the sales management personnel at each business division periodically monitor the status of major business partners and manage due dates and balances by individual business partner in order to detect early and mitigate concerns about collection due to a deterioration in financial conditions and other factors. Consolidated subsidiaries also have similar management systems in place.

The Company limits counterparties of derivatives to financial institutions with high credit ratings to reduce credit risks.

(ii) Management of market risks (risks of fluctuations in foreign exchange rates and interest rates, etc.)

To hedge risks of future exchange rates associated with foreign currency-denominated receivables and payables, the Company mainly uses currency options, currency swaps and forward exchange contracts within the balance of the foreign currency-denominated receivables and payables. Interest rate swaps are also used to reduce the risks of fluctuations in interest rates payable associated with borrowings.

For securities and investment securities, the Company periodically monitors fair values and the financial conditions of issuers (business partners). In addition, for securities other than held-to-maturity bonds, the Company continuously reviews the status of holdings in consideration of market conditions and relationships with business partners.

Derivatives are executed and managed by the funding department with the approval of the responsible person in accordance with the "Rules for Handling Derivatives."

Consolidated subsidiaries also have similar management systems in place.

(iii) Management of liquidity risks associated with funding (risks of inability to make payments on due dates)

The Company manages liquidity risks by having the department in charge prepare and update the funding plan in a timely manner based on reports from respective departments, and by maintaining liquidity on hand. Consolidated subsidiaries also have similar management systems in place.

(4) Supplementary explanations on matters concerning the fair value, etc. of financial instruments

Since the fair value of financial instruments is measured by incorporating variable factors, the value may vary depending on the assumptions used. In addition, the contract amount, etc. related to derivatives in the notes to "Derivatives" does not indicate the market risk associated with derivatives.

2. Matters concerning the fair value, etc. of financial instruments

The book value on the consolidated balance sheet and fair value of financial instruments as well as differences between them are as follows. The description of cash and financial instruments settled in a short period of time is omitted since their fair value equals or approximates to their book value.

As of March 31, 2022

	Book value	Fair value	Difference
	(millions of yen)	(millions of yen)	(millions of yen)
(1) Accounts receivable-trade	48,869	48,869	-
(2) Securities and investment securities ^(*1)
Available-for-sale securities	3,235	3,235	-
Total assets	52,104	52,104	-
(1) Bonds payable	35,000	34,426	(573)
(2) Long-term borrowings (including current portion)	24,124	24,060	(64)
Total liabilities	59,124	58,486	(638)
Derivatives ^(*2)	258	258	-

As of March 31, 2023

	Book value	Fair value	Difference
	(millions of yen)	(millions of yen)	(millions of yen)
(1) Accounts receivable-trade	52,262	52,256	(5)
(2) Securities and investment securities ^(*1)
(i) Held-to-maturity bonds	657	657	(0)
(ii) Available-for-sale securities	3,236	3,236	-
Total assets	56,157	56,150	(6)
(1) Bonds payable	35,000	34,012	(987)
(2) Long-term borrowings (including current portion)	20,554	20,502	(51)
Total liabilities	55,554	54,515	(1,038)
Derivatives ^(*2)	219	219	-

^(*1) Stocks, etc. with no market prices are not included in "(2) Securities and investment securities." The book value on the consolidated balance sheet of such financial instruments is as follows.

Category	Previous fiscal year	Fiscal year under review
	(millions of yen)	(millions of yen)
Unlisted stocks	115	115
Investments in investment partnerships, etc.	0	0
Total	115	115

^(*2) Receivables and payables arising from derivatives are presented in net amounts.

(Notes)

1. Scheduled redemption amount of monetary receivables and securities with maturities after the consolidated closing date

As of March 31, 2022

	Due within 1 year	Due after 1 year through 5 years	Due after 5 years through 10 years	Due after 10 years
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)
Cash and deposits	112,944	-	-	-
Notes receivable-trade	2,013	-	-	-
Electronically recorded monetary claims-operating	6,725	-	-	-
Accounts receivable-trade	48,869	-	-	-
Securities and investment securities
Held-to-maturity bonds
(1) Government and municipal bonds	766	-	-	-
(2) Other	-	-	-	-
Available-for-sale securities with maturities
(1) Government and municipal bonds	-	-	-	-
(2) Bonds	-	-	-	-
(3) Other	-	-	-	-
Total	171,319	-	-	-

As of March 31, 2023

	Due within 1 year	Due after 1 year through 5 years	Due after 5 years through 10 years	Due after 10 years
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)
Cash and deposits	129,793	-	-	-
Notes receivable-trade	1,668	-	-	-
Electronically recorded monetary claims-operating	7,771	-	-	-
Accounts receivable-trade	51,043	1,218	-	-
Securities and investment securities
Held-to-maturity bonds
(1) Government and municipal bonds	656	1	-	-
(2) Other	-	-	-	-
Available-for-sale securities with maturities
(1) Government and municipal bonds	-	-	-	-
(2) Bonds	-	-	-	-
(3) Other	-	-	-	-
Total	190,933	1,220	-	-

(Notes)

2. Scheduled repayment amount of short-term borrowings, bonds payable and long-term borrowings after the consolidated closing date

As of March 31, 2022

	Due within 1 year	Due after 1 year through 2 years	Due after 2 years through 3 years
	(millions of yen)	(millions of yen)	(millions of Yen)
Short-term borrowings	11,272	-	-
Bonds payable	-	-	-
Long-term borrowings	3,462	10,133	10,003
Total	14,735	10,133	10,003

	Due after 3 years through 4 years	Due after 4 years through 5 years	Due after 5 years
	(millions of yen)	(millions of yen)	(millions of yen)
Short-term borrowings	-	-	-
Bonds payable	10,000	-	25,000
Long-term borrowings	3	3	518
Total	10,003	3	25,518

As of March 31, 2023

	Due within 1 year	Due after 1 year through 2 years	Due after 2 years through 3 years
	(millions of yen)	(millions of yen)	(millions of yen)
Short-term borrowings	8,903	-	-
Bonds payable	-	-	10,000
Long-term borrowings	10,209	10,060	60
Total	19,112	10,060	10,060

	Due after 3 years through 4 years	Due after 4 years through 5 years	Due after 5 years
	(millions of yen)	(millions of yen)	(millions of yen)
Short-term borrowings	-	-	-
Bonds payable	-	-	25,000
Long-term borrowings	60	60	105
Total	60	60	25,105

3. Matters related to the breakdown, etc. of fair value of financial instruments by level

The fair value of financial instruments is classified into the following three levels according to the observability and materiality of the inputs for the fair value measurement.

	Level 1 fair value: Fair value measured using, among observable inputs for the fair value measurement, the quoted prices formed in active markets for the assets or liabilities subject to the fair value measurement
	Level 2 fair value: Fair value measured using observable inputs for the fair value measurement other than Level 1 inputs
	Level 3 fair value: Fair value measured using unobservable inputs for the fair value measurement

If multiple inputs are used that have a significant impact on the fair value measurement, the fair value is classified into the lowest level of priority in the fair value measurement among the levels to which each input belongs.

(1) Financial instruments recorded in the consolidated balance sheet at fair value

As of March 31, 2022

Category	Fair value (millions of yen)
	Level 1	Level 2	Level 3	Total
Securities and investment securities
Available-for-sale securities
Stocks	2,430	-	-	2,430
Other	-	770	34	804
Derivatives
Currency-related derivatives	-	258	-	258
Interest-related derivatives	-	-	-	-
Total assets	2,430	1,028	34	3,493
Derivatives
Currency-related derivatives	-	-	-	-
Interest-related derivatives	-	-	-	-
Total liabilities	-	-	-	-

As of March 31, 2023

Category	Fair value (millions of yen)
	Level 1	Level 2	Level 3	Total
Securities and investment securities
Available-for-sale securities
Stocks	2,251	-	-	2,251
Other	-	951	34	985
Derivatives
Currency-related derivatives	-	219	-	219
Interest-related derivatives	-	-	-	-
Total assets	2,251	1,171	34	3,456
Derivatives
Currency-related derivatives	-	-	-	-
Interest-related derivatives	-	-	-	-
Total liabilities	-	-	-	-

(2) Financial instruments other than those recorded in the consolidated balance sheet at fair value

As of March 31, 2022

Category	Fair value (millions of yen)
	Level 1	Level 2	Level 3	Total
Accounts receivable-trade	-	48,869	-	48,869
Total assets	-	48,869	-	48,869
Bonds payable	-	34,426	-	34,426
Long-term borrowings	-	24,060	-	24,060
Total liabilities	-	58,486	-	58,486

As of March 31, 2023

Category	Fair value (millions of yen)
	Level 1	Level 2	Level 3	Total
Accounts receivable-trade	-	52,256	-	52,256
Securities and investment securities
Held-to-maturity bonds
Government and municipal bonds	-	657	-	657
Total assets	-	52,913	-	52,913
Bonds payable	-	34,012	-	34,012
Long-term borrowings	-	20,502	-	20,502
Total liabilities	-	54,515	-	54,515

(Note)

Explanation of valuation techniques used in and inputs for the fair value measurement

Accounts receivable-trade

The fair value of accounts receivable-trade is measured based on the present value of each receivable categorized by a certain period discounted by the interest rate that takes into account the amount of the receivable, the period to maturity and the credit risk, and their fair value is classified as Level 2.

Securities and investment securities

Available-for-sale securities

Since listed stocks are valued using quoted prices and are traded in active markets, their fair value is classified as Level 1. On the other hand, Other classified as Level 2 are not traded actively in markets and they are not deemed to have quoted prices in active markets, and their fair value is classified as Level 2.

Held-to-maturity bonds

Government and municipal bonds hold by the Company are not traded actively in markets and they are not deemed to have quoted prices in active markets, and their fair value is classified as Level 2.

Derivatives

The fair value of currency swaps is calculated with the discounted present value method using observable inputs such as interest rates and exchange rates, and their fair value is classified as Level 2.

Bonds payable

The fair value of bonds issued by the Company is measured based on the present value of the total principal and interest discounted by the interest rate that takes into account the remaining term of the bonds and the credit risk, and their fair value is classified as Level 2.

Long-term borrowings

The fair value of long-term borrowings is measured based on the present value of the total principal and interest discounted by the interest rate that takes into account the remaining term of the borrowings and the credit risk, and their fair value is classified as Level 2.

(Securities)

1. Held-to-maturity bonds

As of March 31, 2022

	Class	Book value	Fair value	Difference
		(millions of yen)	(millions of yen)	(millions of yen)
Those whose fair value exceeds the book value on the consolidated balance sheet	(1) Government and municipal bonds	-	-	-
	(2) Corporate bonds	-	-	-
	(3) Other	-	-	-
	Subtotal	-	-	-
	(1) Government and municipal bonds	766	766	-
Those whose fair value does not exceed the book value on the consolidated balance sheet	(2) Corporate bonds	-	-	-
	(3) Other	-	-	-
	Subtotal	766	766	-
Total		766	766	-

As of March 31, 2023

	Class	Book value	Fair value	Difference
		(millions of yen)	(millions of yen)	(millions of yen)
Those whose fair value exceeds the book value on the consolidated balance sheet	(1) Government and municipal bonds	-	-	-
	(2) Corporate bonds	-	-	-
	(3) Other	-	-	-
	Subtotal	-	-	-
	(1) Government and municipal bonds	657	657	(0)
Those whose fair value does not exceed the book value on the consolidated balance sheet	(2) Corporate bonds	-	-	-
	(3) Other	-	-	-
	Subtotal	657	657	(0)
Total		657	657	(0)

2. Available-for-sale securities

As of March 31, 2022

	Class	Book value	Acquisition cost	Difference
		(millions of yen)	(millions of yen)	(millions of yen)
Those whose book value on the consolidated balance sheet exceeds the acquisition cost	(1) Stocks	2,428	1,123	1,304
	(2) Bonds
	(i) Government and municipal bonds	-	-	-
	(ii) Corporate bonds	-	-	-
	(iii) Other	-	-	-
	(3) Other	770	-	770
	Subtotal	3,198	1,123	2,074
Those whose book value on the consolidated balance sheet does not exceed the acquisition cost	(1) Stocks	2	2	(0)
	(2) Bonds
	(i) Government and municipal bonds	-	-	-
	(ii) Corporate bonds	-	-	-
	(iii) Other	-	-	-
	(3) Other	34	34	-
	Subtotal	36	36	(0)
Total		3,235	1,160	2,074

(Note)

Unlisted stocks such as stocks with no market prices (book value on the consolidated balance sheet: 115 million yen) and investments in investment partnerships, etc. (book value on the consolidated balance sheet: 0 million yen) are not included in "2. Available-for-sale securities" in the above table.

As of March 31, 2023

	Class	Book value (millions of yen)	Acquisition cost (millions of yen)	Difference (millions of yen)
Those whose book value on the consolidated balance sheet exceeds the acquisition cost	(1) Stocks	2,215	1,139	1,075
	(2) Bonds
	(i) Government and municipal bonds	-	-	-
	(ii) Corporate bonds	-	-	-
	(iii) Other	-	-	-
	(3) Other	951	-	951
	Subtotal	3,166	1,139	2,027
Those whose book value on the consolidated balance sheet does not exceed the acquisition cost	(1) Stocks	35	36	(0)
	(2) Bonds
	(i) Government and municipal bonds	-	-	-
	(ii) Corporate bonds	-	-	-
	(iii) Other	-	-	-
	(3) Other	34	34	-
	Subtotal	69	70	(0)
Total		3,236	1,209	2,027

(Note)

3. Available-for-sale securities sold

Fiscal year ended March 31, 2022

Class	Amount of proceeds	Total gains on sale	Total losses on sale
	(millions of yen)	(millions of yen)	(millions of yen)
Stocks	316	65	(14)
Total	316	65	(14)

Fiscal year ended March 31, 2023

Class	Amount of proceeds	Total gains on sale	Total losses on sale
	(millions of yen)	(millions of yen)	(millions of yen)
Stocks	-	-	-
Total	-	-	-

4. Impairment of securities

As of March 31, 2022

During the fiscal year, no impairment loss is recognized for securities.

As of March 31, 2023

During the fiscal year, no impairment loss is recognized for securities.

(Derivatives)

1. Derivatives for which hedge accounting is not applied

(1) Currency-related derivatives

As of March 31, 2022

Not applicable.

As of March 31, 2023

Not applicable.

(2) Interest-related derivatives

As of March 31, 2022

Not applicable.

As of March 31, 2023

Not applicable.

2. Derivatives for which hedge accounting is applied

(1) Currency-related derivatives

As of March 31, 2022

Hedge accounting method	Type of derivative	Major hedged items	Contract amount, etc.	Contract amount, etc. due after 1 - year period	Fair value
			(millions of yen)	(millions of yen)	(millions of yen)
Principle accounting method	Currency swaps Receipt of Korean won and payment of Chinese yuan	Loans receivable	1,816	1,440	258
	Total		1,816	1,440	258

(Note)

Method of fair value measurement

The fair value is measured based on prices presented by financial institutions and others.

As of March 31, 2023

Hedge accounting method	Type of derivative	Major hedged items	Contract amount, etc.	Contract amount, etc. due after 1 - year period	Fair value
			(millions of yen)	(millions of yen)	(millions of yen)
Principle accounting method	Currency swaps Receipt of Korean won and payment of Chinese yuan	Loans receivable	1,521	1,033	219
	Total		1,521	1,033	219

(Note)

Method of fair value measurement

The fair value is calculated with the discounted present value method using observable inputs such as interest rates and exchange rates.

(2) Interest-related derivatives

As of March 31, 2022

Not applicable.

As of March 31, 2023

Not applicable.

(Retirement benefits)

1. Overview of the retirement benefit plan adopted

The Company and its consolidated subsidiaries adopt funded and unfunded types of defined benefit plans and defined contribution plans to provide for retirement benefits to employees.

Certain consolidated subsidiaries calculate retirement benefit liabilities and retirement benefit expenses by the simplified method whereby the benefits payable upon the voluntary retirement of all employees at the end of the period are regarded as retirement benefit obligations.

2. Defined benefit plan

(1) Reconciliation of beginning and ending balances of retirement benefit obligations (excluding plans to which the simplified method is applied)

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Beginning balance of retirement benefit obligations	18,884 million yen	19,303 million yen
Service cost	1,126	1,082
Interest cost	200	253
Actuarial gains and losses incurred	(805)	(3,351)
Retirement benefits paid	(683)	(1,230)
Prior service costs incurred	1	(26)
Foreign currency translation adjustments	579	555
Other	-	(27)
Ending balance of retirement benefit obligations	19,303	16,557

(2) Reconciliation of beginning and ending balances of plan assets (excluding plans to which the simplified method is applied)

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Beginning balance of plan assets	15,959 million yen	17,637 million yen
Expected return	461	496
Actuarial gains and losses incurred	(290)	(2,626)
Contributions from employer	1,702	1,972
Retirement benefits paid	(668)	(1,125)
Foreign currency translation adjustments	472	478
Other	1	-
Ending balance of plan assets	17,637	16,833

(3) Reconciliation of the beginning and ending balances of retirement benefit liabilities for plans to which the simplified method is applied

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Beginning balance of retirement benefit liabilities	421 million yen	452 million yen
Retirement benefit expenses	83	91
Retirement benefits paid	(54)	(115)
Other	1	1
Ending balance of retirement benefit liabilities	452	430

(4) Reconciliation of the ending balances of retirement benefit obligations and plan assets and the retirement benefit liabilities and retirement benefit assets reported on the consolidated balance sheet

	As of March 31, 2022	As of March 31, 2023
Retirement benefit obligations for funded-type plans	18,866 million yen	16,134 million yen
Plan assets	(17,637)	(16,833)
	1,228	(699)
Retirement benefit obligations for unfunded-type plans	889	853
Net liabilities and assets reported on the consolidated balance sheet	2,118	154
Retirement benefit liability	2,392	1,818
Retirement benefit assets	(274)	(1,664)
Net liabilities and assets reported on the consolidated balance sheet	2,118	154

(Notes)

Plans to which the simplified method is applied are included.

(5) Amounts of retirement benefit expenses and their components

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Service cost	1,126 million yen	1,082 million yen
Interest cost	200	253
Expected return	(461)	(496)
Actuarial gains and losses expensed	275	146
Prior service cost expensed	1	(26)
Retirement benefit expenses calculated by the simplified method	83	91
Other	9	(19)
Retirement benefit expenses related to defined benefit plans	1,234	1,030

(6) Remeasurements of defined benefit plans, net of tax

Remeasurements of defined benefit plans, net of tax (before tax effect) consist of the following.

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Actuarial gains and losses	(681) million yen	(889) million yen
Total	(681)	(889)

(7) Remeasurements of defined benefit plans

Remeasurements of defined benefit plans (before tax effect) consist of the following.

	As of March 31, 2022	As of March 31, 2023
Unrecognized actuarial gains and losses	957 million yen	68 million of yen
Total	957	68

(8) Matters related to plan assets

(i) Major components of plan assets

The ratio of each major category to total plan assets is as follows.

	As of March 31, 2022	As of March 31, 2023
Bonds	33%	36%
Stocks	17	19
General accounts	32	29
Alternative investments	9	8
Other	9	8
Total	100	100

(Note)

Alternative investments are primarily investments in hedge funds.

(ii) Method for determining the long-term expected rates of return

To determine the long-term expected rates of return on plan assets, the current and expected allocation of the plan assets as well as the current and future long-term expected rates of return from various assets comprising the plan assets, are considered.

(9) Matters concerning the actuarial calculation bases

Principal actuarial bases (on a weighted average basis)

	As of March 31, 2022	As of March 31, 2023
Discount rates	1.3%	2.5%
Long-term expected rates of return	2.9%	2.8%

3. Defined contribution plans

The required amounts of contribution to the defined contribution plans of the Company and its consolidated subsidiaries were 710 million yen in the previous fiscal year and 792 million yen in the fiscal year under review.

(Tax effect accounting)

1. Breakdown of major factors that resulted in deferred tax assets and deferred tax liabilities

	As of March 31, 2022	As of March 31, 2023
(Deferred tax assets)
Accrued enterprise tax	122 million yen	182 million yen
Provision for bonuses	522	599
Loss on valuation of inventories	157	181
Allowance for doubtful accounts	33	32
Retirement benefit liability	802	602
Impairment losses	820	1,906
Tax loss carryforwards	2,260	3,471
Depreciation	1,153	376
Unrealized gains on inventories	451	535
Other	2,222	2,731
Subtotal	8,546	10,620
Offset with deferred tax liabilities for the same taxpaying entity	(3,956)	(3,928)
Subtotal deferred tax assets	4,589	6,692
Subtotal valuation allowance (Note)	(2,958)	(5,728)
Total deferred tax assets (Deferred tax liabilities)	1,630	963
Valuation difference on available-for-sale securities	(432)	(359)
Reserve for tax-purpose reduction entry of non-current assets	(1,346)	(1,311)
Reserve for special depreciation	(250)	(192)
Retirement benefit trust securities	(232)	(232)
Tax effect on undistributed earnings of overseas subsidiaries	(6,687)	(7,560)
Depreciation	(1,293)	(1,211)
Other	(640)	(235)
Subtotal	(10,883)	(11,103)
Offset with deferred tax assets for the same taxpaying entity	3,956	3,928
Total deferred tax liabilities	(6,926)	(7,175)
Net deferred tax assets (liabilities)	(5,296)	(6,212)

(Note)

Material changes occurred in the amount deducted from deferred tax assets (valuation allowance). This change consists mainly of an increase in valuation allowance associated with impairment loss of non-current assets in the fiscal year under review.

2. Breakdown of major items that caused significant differences between the statutory effective tax rate and the actual effective tax rate after the application of tax effect accounting

	As of March 31, 2022	As of March 31, 2023
Statutory effective tax rate	30.6%	30.6%
(Adjustment)
Entertainment expenses and other items permanently not deductible for tax purposes	0.6	0.5
Dividend income and other items permanently excluded from taxable income	(0.6)	(2.2)
Differences in tax rates for overseas subsidiaries	(6.8)	(7.9)
Tax effect on undistributed earnings of overseas subsidiaries	8.1	8.5
Experimentation and research expenses and other tax credits	(2.1)	(1.8)
Effect of changes in valuation allowance	(0.9)	8.3
Effect of tax rate changes	0.0	0.2
Other	(0.3)	1.7
Actual effective tax rate after the application of tax effect accounting	28.6	37.9

(Changes in presentation)

"Effect of changes in valuation allowance" and "Effect of tax rate changes," which were included in "Other" in the previous fiscal year, are stated independently from the fiscal year under review due to their increased financial significance. Notes for the previous fiscal year have been reclassified to reflect these changes in presentation.

As a result, the (1.2%) of "Other" for the previous fiscal year has been reclassified into "Effect of changes in valuation allowance" of (0.9), "Effect of tax rate changes" of (0.0) and "Other" of (0.3%).

(Revenue recognition)

1. Information on the breakdown of revenue from contracts with customers

Information on the breakdown of revenue from contracts with customers is as described in "Notes to segment information, etc."

2. Information that forms a basis for understanding revenue from contracts with customers

It is as described in "(5) Basis for recognition of significant revenues and expenses" in "4. Matters related to accounting policies," in "Significant matters serving as the basis for preparing consolidated financial statements."

3. Information on the relationship between fulfillment of performance obligations under contracts with customers and cash flows arising from such contracts as well as the amount and timing of revenue from contracts with customers existing at the end of the fiscal year under review which is expected to be recognized in the following fiscal year and thereafter

1. Balance of contract assets and contract liabilities

		(millions of yen)
	Previous fiscal year	Fiscal year under review
Receivables arising from contracts with customers (beginning balance)	54,458	57,608
Receivables arising from contracts with customers (ending balance)	57,608	61,702
Contract assets (beginning balance)	466	626
Contract assets (ending balance)	626	786
Contract liabilities (beginning balance)	2,835	4,530
Contract liabilities (ending balance)	4,530	4,240

Contract assets relate to the rights of the Company and its consolidated subsidiaries to the consideration for the sales contract under which the delivery of products to a customer has been completed but the customer has not yet been billed as of the end of the fiscal year. Contract assets are transferred to receivables arising from contracts with customers when the rights of the Company and its consolidated subsidiaries become unconditional. Contract liabilities primarily relate to advances received from customers in sales contracts. Contract liabilities are amortized mainly as a result of revenue recognition.

Of the amount of revenue recognized in the fiscal year under review, the amount included in the beginning balance of contract liabilities was 3,954 million yen.

The main reason for the increase of 160 million yen in contract assets in the fiscal year under review was that the increase due to new contracts exceeded the decrease due to transfer to receivables arising from contracts with customers. The main reason for the decrease of 289 million yen in contract liabilities in the fiscal year under review was that the increase of advances received was less than the decrease due to revenue recognition.

2. Transaction price allocated to the remaining performance obligations

Unfulfilled performance obligations amounted to 18,782 million yen as of March 31, 2023. The performance obligations relate to the manufacture and sale of products in the Industrial plastic parts & components business, and approximately 68% of them are expected to be recognized as revenue within one year after the end of the fiscal year, and almost all of them within three years.

(Segment Information, etc.)

[Segment Information]

1. Overview of reportable segments

The Company's reportable segments are its constituent units for which separate financial information is available and are subject to periodic review by the Board of Directors in order to determine the allocation of management resources and evaluate performance.

Depending on the type and nature of the products, the Company has two reportable segments: the Industrial plastic parts & components business and the Bedding & furniture business.

Major products and services in each reportable segment are as follows.

(1)	Industrial plastic parts & components: Industrial plastic fasteners, plastic precision molded parts, etc.
(2)	Bedding & furniture: Various types of beds, reclining chairs, etc.

2. Calculation method of the amounts of net sales, profit or loss, assets, liabilities and other items by reportable segments

The method of accounting for the reported business segments is generally the same as that described in "Significant matters serving as the basis for preparing consolidated financial statements."

The profit or loss of reportable segments is operating profit or operating loss.

Intersegment sales are based on prevailing market prices.

3. Information on the amounts of net sales, profit or loss, assets, liabilities and other items by reportable segment

Fiscal year ended March 31, 2022

					(millions of yen)
	Reportable segment			Adjustment (Note 1) (Note 3) (Note 4)	Amount reported in consolidated financial statements (Note 2)
	Industrial plastic parts & components	Bedding & furniture	Total
Net sales
Revenue from contracts with customers	254,044	29,732	283,777	-	283,777
Other revenue	-	-	-	-	-
Net sales to external customers	254,044	29,732	283,777	-	283,777
Intersegment sales or transfers	-	0	0	(0)	-
Total	254,044	29,732	283,777	(0)	283,777
Segment profit (loss)	30,157	5,564	35,722	(5,182)	30,540
Segment assets	233,246	36,024	269,271	63,797	333,068
Other items
Depreciation	11,221	1,485	12,706	123	12,830
Increase in property, plant and equipment and intangible assets	7,694	1,233	8,928	12	8,940

(Notes)

1. Adjustment of segment profit (loss) of (5,182) million yen represents corporate expenses. Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

2. Segment profit (loss) is adjusted for operating profit in the consolidated statement of income and statement of comprehensive income.

3. Adjustment of 63,797 million yen for segment assets includes corporate assets not allocated to each reportable segment of 63,946 million yen and elimination of intersegment transactions of (149) million yen.

4. Adjustment of 12 million yen for increase in property, plant and equipment and intangible assets represents capital expenditures for corporate assets not allocated to each reportable segment.

Fiscal year ended March 31, 2023

					(millions of yen)
	Reportable segment			Adjustment (Note 1) (Note 3) (Note 4)	Amount reported in consolidated financial statements (Note 2)
Net sales	Industrial plastic parts & components	Bedding & furniture	Total
Revenue from contracts with customers	288,734	33,037	321,771	-	321,771
Other revenue	-	-	-	-	-
Net sales to external customers	288,734	33,037	321,771	-	321,771
Intersegment sales or transfers	-	0	0	(0)	-
Total	288,734	33,037	321,771	(0)	321,771
Segment profit (loss)	34,050	5,885	39,936	(5,496)	34,439
Segment assets	244,700	40,252	284,952	74,197	359,150
Other items
Depreciation	11,922	1,712	13,634	134	13,768
Increase in property, plant and equipment and intangible assets	8,424	393	8,817	54	8,872

(Notes)

1. Adjustment of segment profit (loss) of (5,496) million yen represents corporate expenses. Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

2. Segment profit (loss) is adjusted for operating profit in the consolidated statement of income and statement of comprehensive income.

3. Adjustment of 74,197 million yen for segment assets includes corporate assets not allocated to each reportable segment of 74,324 million yen and elimination of intersegment transactions of (127) million yen.

4. Adjustment of 54 million yen for increase in property, plant and equipment and intangible assets represents capital expenditures for corporate assets not allocated to each reportable segment.

[Related Information]

Fiscal year ended March 31, 2022

1. Information by product and service

A description is omitted since the same information is disclosed in the segment information.

2. Information by geographical area

(1) Net sales


Japan	China	South Korea	Asia (Note 2)
89,739	39,521	33,872	26,239

				(millions of yen)
Japan	U.S.A.	North America (Note 3)	Europe	Other	Total
89,739	48,931	9,224	34,120	2,128	283,777

(Notes)

1. Net sales are categorized by country or region based on the location of customers.

2. Figures for Asia do not include net sales in China and South Korea.

3. Figures for North America do not include net sales in the U.S.A.

(2) Property, plant and equipment


Japan	China	South Korea	Asia (Note 1)
42,386	12,480	7,993	10,031

			(millions of yen)
Japan	U.S.A.	North America (Note 2)	Europe	Total
42,386	12,881	3,177	14,379	103,329

(Notes)

1. Figures for Asia do not include property, plant and equipment in China and South Korea.

2. Figures for North America do not include property, plant and equipment in the U.S.A.

3. Information about major customers

The information is not shown because no single external customer accounts for 10% or more of net sales.

Fiscal year ended March 31, 2023

1. Information by product and service

A description is omitted since the same information is disclosed in the segment information.

2. Information by geographical area

(1) Net sales


Japan	China	South Korea	Asia (Note 2)
94,384	43,576	39,051	34,289

				(millions of yen)
Japan	U.S.A.	North America (Note 3)	Europe	Other	Total
94,384	59,403	11,162	37,547	2,355	321,771

(Notes)

1. Net sales are categorized by country or region based on the location of customer.

2. Figures for Asia do not include net sales in China and South Korea.

3. Figures for North America do not include net sales in the U.S.A.

(2) Property, plant and equipment


Japan	China	South Korea	Asia (Note 1)
41,678	11,442	8,667	11,660

			(millions of yen)
Japan	U.S.A.	North America (Note 2)	Europe	Total
41,678	13,035	3,563	14,873	104,921

(Notes)

1. Figures for Asia do not include property, plant and equipment in China and South Korea.

2. Figures for North America do not include property, plant and equipment in the U.S.A.

3. Information about major customers

The information is not shown because no single external customer accounts for 10% or more of net sales.

[Information about impairment losses on non-current assets by each reportable segment]

Fiscal year ended March 31, 2022

Not applicable.

Fiscal year ended March 31, 2023

			(millions of yen)
	Industrial plastic parts & components	Bedding & furniture	Elimination/Corporate	Total
Impairment losses	1,903	-	-	1,903

[Information about amortization of goodwill and unamortized balance by reportable segment]

Fiscal year ended March 31, 2022

Goodwill

			(millions of yen)
	Industrial plastic parts & components	Bedding & furniture	Elimination/Corporate	Total
Amortization during period	317	-	-	317
Balance at end of period	735	-	-	735

Fiscal year ended March 31, 2023

Goodwill

			(millions of yen)
	Industrial plastic parts & components	Bedding & furniture	Elimination/Corporate	Total
Amortization during period	322	-	-	322
Balance at end of period	467	-	-	467

[Information about gain on negative goodwill by reportable segment]

Not applicable.

[Related Party Information]

Fiscal year ended March 31, 2022

Not applicable.

Fiscal year ended March 31, 2023

Not applicable.

(Per share information)

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Net assets per share	1,978.36 yen	2,237.06 yen
Basic earnings per share	227.27 yen	211.28 yen

(Notes)

1. Diluted earnings per share is not stated because there are no dilutive shares.

2. The basis for calculating basic earnings per share is as follows.

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Basic earnings per share
Profit attributable to owners of parent (millions of yen)	22,959	21,170
Profit not attributable to common shareholders (millions of yen)	-	-
Profit attributable to owners of parent in relation to common stock (millions of yen)	22,959	21,170
Average number of shares during the period (thousands of shares)	101,024	100,198

(Notes)

3. The Company' s shares remaining in the trust, which are recorded as treasury shares in shareholders' equity, are included in treasury shares to be deducted in the calculation of the average number of shares during the period for calculating basic earnings per share and in the number of treasury shares to be deducted from the total number of issued shares at the end of the period for calculating net assets per share.

Average number of shares of treasury stock during the period deducted for calculating basic earnings per share

As of March 31, 2022: 406,686 shares; as of March 31, 2023: 454,460 shares

Number of treasury shares at the end of the period deducted for calculating net assets per share

As of March 31, 2022: 454,421 shares; as of March 31, 2023: 462,960 shares

(Significant subsequent events)

(Disposal of treasury shares by third-party allotment)

The Company decided at the meeting of the Board of Directors held on May 18, 2023, to introduce an incentive plan to grant members of the Nifco Employee Stock Ownership Association shares of common stock issued by the Company as a special incentive in order to increase employee motivation for boosting the Company's medium- to long-term shareholder value.

1. Outline of disposal of treasury shares

(1) Date of disposal	July 25, 2023
(2) Class of shares to be disposed of	Common stock of the Company
(3) Number of shares to be disposed of	69,234
(4) Disposal value	3,775 yen per share
(5) Total disposal amount	261,358,350 yen
(6) Method of disposal	Third-party allotment
(7) Scheduled allottee	Nifco Employee Stock Ownership Association

2. Other

The disposal of treasury shares shall be subject to the effectuation of notification under the Financial Instruments and Exchange Act.

(v) Consolidated Supplementary Schedules

[Schedule of bonds]

Company name	Issuer	Date of issuance	Balance at beginning of period
			(millions of yen)
Nifco Inc.	4th issuance of unsecured bonds	May 18, 2018	10,000
Nifco Inc.	5th issuance of unsecured bonds	May 18, 2018	10,000
Nifco Inc.	6th issuance of unsecured bonds	September 11, 2019	15.000
			35.000
Total	-	-	[-]

Company name	Balance at end of period	Interest rate	Collateral	Maturity
	(millions of yen)	(%)
Nifco Inc.	10,000	0.25	None	May 8, 2025
Nifco Inc.	10,000	0.385	None	May 8, 2028
Nifco Inc.	15,000	0.28	None	September 11, 2029
	35,000
Total	(-)	-	-	-

(Notes)

1. The figures in square brackets in the columns of "Balance at beginning of period" and "Balance at end of period" indicate the current portions included in the figures outside the brackets.

2. The scheduled redemption amount of bonds for the five years after the consolidated closing date is as follows.

Due within 1 year	Due after 1 year through 2 years	Due after 2 years through 3 years	Due after 3 years through 4 years	Due after 4 years through 5 years
(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)
-	-	10,000	-	-

[Schedule of borrowings, etc.]

Category	Balance at beginning of period	Balance at end of period	Average interest rate	Maturity
	(millions of yen)	(millions of yen)	(%)
Short-term borrowings	11,272	8,903	2.94	-
Current portion of long-term borrowings	3,462	10,209	0.22	-
Current portion of lease obligations	1,263	2,067	2.00	-
Long-term borrowings (excluding current portion)	20,661	10,345	0.20	From 2024 to 2030
Lease obligations (excluding current portion)	3,411	4,815	1.63	From 2024 to 2033
Total	40,071	36,340	-	-

(Notes)

1. "Average interest rate" indicates the weighted average interest rate for the ending balance of borrowings, etc.

2. The average interest rate of lease obligations is calculated excluding the lease obligations recorded in the consolidated balance sheet in the amount before deducting the amount equivalent to interest included in the total lease payments.

3. The scheduled redemption amount of long-term borrowings and lease obligations (excluding current portion) for the five years after the consolidated closing date is as follows.

Category	Due after 1 year through 2 years	Due after 2 years through 3 years	Due after 3 years through 4 years	Due after 4 years through 5 years
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)
Long-term borrowings	10,060	60	60	60
Lease obligations	1,679	950	675	533

[Schedule of asset retirement obligations]

The amount of asset retirement obligations at the beginning and the end of the fiscal year under review is not more than 1/100 of the total liabilities and net assets at the beginning and the end of the fiscal year under review, and a description is omitted pursuant to the provisions of Article 92-2 of the Regulations for Consolidated Financial Statements.

(2) Others

Quarterly information, etc. for the fiscal year under review

(Cumulative period from the start of the fiscal year)	For the three months ended June 30, 2022	For the six months ended September 30, 2022	For the nine months ended December 31, 2022	Fiscal year under review
Net sales (millions of yen)	72,648	148,350	234,210	321,771
Profit before income taxes (millions of yen)	11,238	19,843	28,457	35,657
Profit attributable to owners of parent (millions of yen)	8,035	13,840	18,530	21,170
Basic earnings per share (yen)	80.22	138.10	184.87	211.28

(Three-month period)	For the three months ended June 30, 2022	For the six months ended September 30, 2022	For the nine months ended December 31, 2022	For the three months ended March 31, 2023
Basic earnings per share (yen)	80.22	57.90	46.77	26.37

2. Financial Statements, etc.

(1) Financial Statements

(i) Balance Sheet

		(millions of yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	60,117	70,980
Notes receivable-trade	315	285
Accounts receivable-trade	^*1 18,605	^*1 19,206
Electronically recorded monetary claims-operating	4,177	4,584
Merchandise and finished goods	5,919	6,629
Work in process	875	515
Raw materials and supplies	442	435
Short-term loans receivable from subsidiaries and associates	2,030	2,023
Accounts receivable-other	^*1 2,846	^*1 2,889
Other	^*1 371	^*1 1,219
Total current assets	95,702	108,770
Non-current assets
Property, plant and equipment
Buildings	16,546	15,780
Structures	602	544
Machinery and equipment	3,073	3,299
Vehicles	3	3
Tools, furniture and fixtures	988	883
Molds	563	559
Land	8,498	8,737
Construction in progress	1,016	1,063
Other	9	23
Total property, plant and equipment	31,303	30,896
Intangible assets
Software	272	199
Other	25	25
Total intangible assets	297	224
Investments and other assets
Investment securities	2,541	2,318
Shares of subsidiaries and associates	52,983	52,987
Long-term loans receivable from subsidiaries and associates	7,809	9,162
Long-term accounts receivable-other	153	114
Deferred tax assets	-	184
Other	643	1,196
Allowance for doubtful accounts	(282)	(3,372)
Total investments and other assets	63,849	62,591
Total non-current assets	95,450	93,713
Total assets	191,152	202,483

		(millions of yen)
	As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Accounts payable-trade	^*1 10,282	^*1 9,463
Electronically recorded obligations	-	1,582
Accounts payable-other	^*1 2,546	^*1 1,853
Accrued expenses	398	409
Income taxes payable	536	2,186
Deposits received	^*1 73	^*1 78
Provision for bonuses	1,262	1,518
Electronically recorded obligations-facilities	-	134
Accounts payable-facilities	^*1 339	^*1 334
Current portion of long-term borrowings	3,000	10,000
Refund liabilities	-	1,229
Other	^*1 62	^*1 31
Total current liabilities	18,502	28,822
Non-current liabilities
Bonds payable	35,000	35,000
Long-term borrowings	20,000	10,000
Long-term borrowings from subsidiaries and associates	611	667
Deferred tax liabilities	581	-
Retirement benefits for directors (and other officers)	6	6
Asset retirement obligations	75	75
Other	801	985
Total non-current liabilities	57,075	46,734
Total liabilities	75,577	75,557
Net assets
Shareholders' equity
Share capital	7,290	7,290
Capital surplus
Legal capital surplus	11,651	151
Other capital surplus	2,511	14,052
Total capital surplus	14,163	14,204
Retained earnings
Legal retained earnings	1,793	1,793
Other retained earnings
Reserve for special account for tax-purpose reduction entry of non-current assets	2,166	2,095
General reserve	44,700	44,700
Retained earnings brought forward	63,311	75,814
Total retained earnings	111,970	124,402
Treasury shares	(18,736)	(19,691)
Total shareholders' equity	114,687	126,205
Valuation and translation adjustments
Valuation difference on available-for-sale securities	887	720
Total valuation and translation adjustments	887	720
Total net assets	115,575	126,926
Total liabilities and net assets	191,152	202,483

(ii) Statement of Income

		(millions of yen)
	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Net sales	^*1 83,365	^*1 86,391
Cost of sales	^1,3 60,691	^1,3 62,549
Gross profit	22,673	23,842
Selling, general and administrative expenses	^1,2 15,956	^1,2 16,869
Operating profit	6,717	6,972
Non-operating income
Interest and dividend income	^*1 10,095	^*1 16,388
Foreign exchange gains	2,321	2,317
Other	^*1 458	^*1 481
Total non-operating income	12,875	19,186
Non-operating expenses
Interest expenses	151	161
Rental costs on real estate	469	458
Provision of allowance for doubtful accounts	282	3,090
Other	72	60
Total non-operating expenses	975	3,770
Ordinary profit	18,617	22,389
Extraordinary income
Gain on sale of investment securities	^*4 50	-
Gain on sale of shares of subsidiaries	^*5 46	-
Total extraordinary income	96	-
Extraordinary losses
Loss on sale and retirement of non-current assets	^*6 26	^*6 65
Total extraordinary losses	26	65
Profit before income taxes	18,686	22,323
Income taxes-current	2,209	4,341
Income taxes-deferred	(152)	(691)
Total income taxes	2,056	3,649
Profit	16,629	18,674

(iii) Statement of Changes in Equity

Fiscal year ended March 31, 2022


	Shareholders' equity
		Capital surplus

	Share capital	Legal capital surplus	Other capital surplus	Total capital surplus
Balance at beginning of period	7,290	11,651	2,335	13,987
Cumulative effects of changes in accounting policies
Restated balance	7,290	11,651	2,335	13,987
Changes during period
Dividends of surplus
Profit
Reversal of reserve for special account for taxpurpose reduction entry of non-current assets
Purchase of treasury shares
Disposal of treasury shares			176	176
Transfer from legal capital surplus to other capital surplus
Net changes in items other than shareholders' equity
Total changes during period	-	-	176	176
Balance at end of period	7,290	11,651	2,511	14,163

				(millions of yen)
	Shareholders' equity
	Capital surplus	Retained earnings
		Other retained earnings
	Legal retained earnings	Reserve for special account for tax-purpose reduction entry of non-current assets	General reserve	Retained earnings brought forward	Total retained earnings
Balance at beginning of period	1,793	2,241	44,700	52,489	101,223
Cumulative effects of changes in accounting policies				118	118
Restated balance	1,793	2,241	44,700	52,607	101,342
Changes during period
Dividends of surplus				(6,001)	(6,001)
Profit				16,629	16,629
Reversal of reserve for special account for taxpurpose reduction entry of non-current assets		(75)		75	-
Purchase of treasury shares
Disposal of treasury shares
Transfer from legal capital surplus to other capital surplus
Net changes in items other than shareholders' equity
Total changes during period	-	(75)	-	10,703	10,628
Balance at end of period	1,793	2,166	44,700	63,311	111,970

	Shareholders' equity		Valuation and translation adjustments
	Treasury shares	Total shareholders' equity	Valuation difference on available-for-sale securities	Total valuation and translation adjustments	Total net assets
Balance at beginning of period	(13,896)	108,604	662	662	109,266
Cumulative effects of changes in accounting policies		118			118
Restated balance	(13,896)	108,722	662	662	109,385
Changes during period
Dividends of surplus		(6,001)			(6,001)
Profit		16,629			16,629
Reversal of reserve for special account for taxpurpose reduction entry of non-current assets		-			-
Purchase of treasury shares	(5,171)	(5,171)			(5,171)
Disposal of treasury shares	331	507			507
Transfer from legal capital surplus to other capital surplus
Net changes in items other than shareholders' equity	-	-	225	225	225
Total changes during period	(4,839)	5,964	225	225	6,189
Balance at end of period	(18,736)	114,687	887	887	115.575

Fiscal year ended March 31, 2023


	Shareholders' equity
		Capital surplus

	Share capital	Legal capital surplus	Other capital surplus	Total capital surplus
Balance at beginning of period	7,290	11,651	2,511	14,163
Changes during period
Dividends of surplus
Profit
Reversal of reserve for special account for taxpurpose reduction entry of non-current assets
Purchase of treasury shares
Disposal of treasury shares			40	40
Transfer from legal capital surplus to other capital surplus		(11,500)	11,500	-
Net changes in items other than shareholders' equity
Total changes during period	-	(11,500)	11,540	40
Balance at end of period	7,290	151	14,052	14,204

				(millions of yen)
	Shareholders' equity
	Capital surplus	Retained earnings
		Other retained earnings
	Legal retained earnings	Reserve for special account for tax-purpose reduction entry of non-current assets	General reserve	Retained earnings brought forward	Total retained earnings
Balance at beginning of period	1,793	2,166	44,700	63,311	111,970
Changes during period
Dividends of surplus				(6,241)	(6,241)
Profit				18,674	18,674
Reversal of reserve for special account for taxpurpose reduction entry of non-current assets		(70)		70	-
Purchase of treasury shares
Disposal of treasury shares
Transfer from legal capital surplus to other capital surplus
Net changes in items other than shareholders' equity
Total changes during period	-	(70)	-	12,503	12,432
Balance at end of period	1,793	2,095	44,700	75,814	124,402

	Shareholders' equity		Valuation and translation adjustments
	Treasury shares	Total shareholders' equity	Valuation difference on available-for-sale securities	Total valuation and translation adjustments	Total net assets
Balance at beginning of period	(18,736)	114,687	887	887	115,575
Changes during period
Dividends of surplus		(6,241)			(6,241)
Profit		18,674			18,674
Reversal of reserve for special account for taxpurpose reduction entry of non-current assets		-			-
Purchase of treasury shares	(1,328)	(1,328)			(1,328)
Disposal of treasury shares	372	413			413
Transfer from legal capital surplus to other capital surplus		-			-
Net changes in items other than shareholders' equity	-	-	(167)	(167)	(167)
Total changes during period	(955)	11,517	(167)	(167)	11.350
Balance at end of period	(19,691)	126,205	720	720	126,926

[Notes to Non-Consolidated Financial Statements]

(Significant accounting policies)

1. Valuation standards and methods for assets

(1) Valuation standards and methods for securities

(i) Held-to-maturity bonds	Stated at amortized cost (straight-line method).
(ii) Shares of subsidiaries and associates	Stated at cost determined by the moving average method.

(iii) Available-for-sale securities

•

Those other than stocks, etc. with no market prices

Stated at fair value based on market prices, etc. at the end of the fiscal year (with any unrealized gains or losses being reported directly to net assets and the cost of any securities sold being calculated by the moving average method).

•

Stocks, etc. with no market prices

Stated at cost determined by the moving average method.

(2) Valuation standards and methods for derivatives, etc.

Derivatives Stated at fair value.

(3) Valuation standards and methods for inventories

(i) Merchandise, finished goods, work in process, raw materials and supplies (excluding inventories related to molds)

Stated at cost determined by the periodic average method (with balance sheet values reflecting write-downs for decreased profitability).

(ii) Inventories related to molds

Stated at cost determined by the specific identification method (with balance sheet values reflecting write-downs for decreased profitability).

2. Depreciation method for non-current assets

(1) Property, plant and equipment (excluding leased assets)

Depreciated by the straight-line method.

The principal useful lives are as follows.

Buildings	38 to 50 years
Machinery and equipment	5 to 10 years
Tools, furniture and fixtures	2 to 15 years
Molds	2 years

(2) Intangible assets

(i) Software for internal use

Amortized by the straight-line method over its internal useful life (five years).

(ii) Other intangible assets

Depreciated by the straight-line method.

(3) Leased assets

The straight-line method is applied with estimated useful lives equal to lease terms and zero residual values.

3. Basis for provisions

(1) Allowance for doubtful accounts

(2) Provision for bonuses

The Company makes provision for bonuses payable to employees based on the estimated payments.

(3) Provision for retirement benefits

The Company makes provision for retirement benefits payable to employees based on the retirement benefit obligations and the estimated pension assets as of the end of the fiscal year under review.

4. Basis for recognition of revenues and expenses

The Company mainly manufactures and sells industrial plastic fasteners, plastic precision molded parts, etc., and provides customers with parts used in the automobile and home appliance industries.

In calculating transaction prices, revenue is recognized in the amount of the consideration promised in contracts with customers after deducting discounts, etc.

5. Other matters serving as the basis for preparing financial statements

(1) Hedge accounting method

(i) Hedge accounting method

(ii) Hedging instruments and hedged items

There are no hedged items to which hedge accounting has been applied in the fiscal year under review.

(iii) Hedging policy

The Company hedges foreign exchange fluctuation risks and interest rate fluctuation risks mainly in accordance with its internal rules, the "Rules on Handling Derivatives."

(iv) Evaluation method of hedge effectiveness

The effectiveness is evaluated based on the provisions of the "Practical Guidelines on Accounting Standards for Financial Instruments" (Japanese Institute of certified public accountants).

(2) Method of accounting for retirement benefits

In the financial statements, unrecognized actuarial gains and losses are accounted for differently in the balance sheet from in the consolidated financial statements. In the non-consolidated balance sheet, the amount obtained by deducting pension assets from the amount obtained by adjusting retirement benefit obligations by unrecognized actuarial gains and losses is recorded in the provision for retirement benefits.

(Significant accounting estimates)

Allowance for doubtful accounts on loans to Nifco KTW America Corporation

(1) Amount recorded in the financial statements for the fiscal year under review

Short-term loans receivable from subsidiaries and associates	801 million yen
Long-term loans receivable from subsidiaries and associates	4,606 million yen
Allowance for doubtful accounts	2,760 million yen

(2) Information on significant accounting estimates for identified items

With respect to loans to subsidiaries and associates, we consider the collectibility based on the debtor's financial position, operating results and degree of insolvency, and the amount expected to be uncollectible is recorded as allowance for doubtful accounts.

There is a possibility that additional provision or reversal of allowance for doubtful accounts may be made depending on the changes in the financial position and operating results of subsidiaries and associates in the following fiscal year.

(Changes in accounting policies)

Not applicable.

(Changes in presentation)

Not applicable.

(Additional Information)

1. Executive stock compensation plan

Notes are omitted because they are included in "Additional information, Notes to (Executive stock compensation plan)" in the consolidated financial statements.

2. Employee stock compensation plan

Notes are omitted because they are included in "Additional information, Notes to (Employee stock compensation plan)" in the consolidated financial statements.

(Balance sheet)

*1 Monetary receivables and payables (excluding those presented separately) to subsidiaries and associates are as follows.

	As of March 31, 2022	As of March 31, 2023
Short-term monetary receivables	3,458 million yen	2,564 million yen
Short-term monetary payables	5,051	4,855

2. Guarantee obligation

The Company mainly guarantees borrowings of subsidiaries and associates from financial institutions.

As of March 31, 2022	5,754 million yen
As of March 31, 2023 (Statement of income)	3,884 million yen

*1 The volume of transactions with subsidiaries and associates is as follows.

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Volume of operating transactions	27,296 million yen	27,165 million yen
Volume of those other than operating transactions	10,327	16,533

*2 The approximate percentage of selling expenses for the previous fiscal year and the fiscal year under review were 27% and 27%, respectively. The approximate percentage of general and administrative expenses for the previous fiscal year and the fiscal year under review were 73% and 73%, respectively. Major items and amounts of selling, general and administrative expenses are as follows.

	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023
Packing and transportation costs	4,217 million yen	4,566 million yen
Remuneration, salaries and allowances	2,862	2,810
Provision for bonuses	609	751
Depreciation	481	484
Commission expenses	1,624	1,516

*3 Cost of sales

Fiscal year ended March 31, 2022

The Company receives subsidies for employment adjustment from governments for leave allowances for periods in which operations were suspended and operating hours were shortened in response to requests from governments to prevent the spread of COVID-19. The subsidy income is offset against related personnel expenses, etc. (cost of sales of 11 million yen). Fiscal year ended March 31, 2023 As orders received declined due to the impact of the spread of COVID-19, the Company receives subsidies for employment adjustment from governments for leave allowances for periods in which operations were suspended and operating hours were shortened. The subsidy income is offset against related personnel expenses, etc. (cost of sales of 19 million yen).

*4 Gain on sale of investment securities

Fiscal year ended March 31, 2022

It is due to the sale in accordance with the policy for cross-shareholdings.

Fiscal year ended March 31, 2023

Not applicable.

*5 Gain on sale of shares of subsidiaries

Fiscal year ended March 31, 2022

It is due to the sale of shares of Nifco Products Espana, S.L.U.

Fiscal year ended March 31, 2023

Not applicable.

*6 Loss on sale and retirement of non-current assets

Fiscal year ended March 31, 2022

It is mainly due to the sale of molds, etc.

Fiscal year ended March 31, 2023

It is mainly due to the sale of molds, etc.

(Securities)

As of March 31, 2022

Stocks of subsidiaries and associates (book value of stocks of subsidiaries and associates on the consolidated balance sheet: 52,983 million yen and 0 million yen, respectively) are not stated because they are stocks with no market prices.

As of March 31, 2023

Stocks of subsidiaries and associates (book value of stocks of subsidiaries and associates on the consolidated balance sheet: 52,987 million yen and 0 million yen, respectively) are not stated because they are stocks with no market prices.

(Tax effect accounting)

1. Breakdown of major factors that resulted in deferred tax assets and deferred tax liabilities

	As of March 31, 2022	As of March 31, 2023
(Deferred tax assets)
Accrued enterprise tax	77 million yen	139 million yen
Loss on valuation of molds	28	12
Provision for bonuses	385	464
Loss on valuation of shares of subsidiaries and associates	1,306	1,306
Allowance for doubtful accounts	86	1,031
Other	469	931
Subtotal deferred tax assets	2,354	3,886
Valuation allowance pertaining to total deductible temporary difference	(1,335)	(2,206)
Total deferred tax assets (Deferred tax liabilities)	1,019	1,679
Retirement benefit trust securities	(232)	(232)
Reserve for special account for tax-purpose reduction entry of non-current assets	(954)	(923)
Valuation difference on available-for-sale securities	(391)	(317)
Other	(22)	(22)
Total deferred tax liabilities	(1,600)	(1,495)
Net deferred tax assets (liabilities)	(581)	184

2. Breakdown of major items that caused differences between the statutory effective tax rate and the actual effective tax rate after the application of tax effect accounting

	As of March 31, 2022	As of March 31, 2023
Statutory effective tax rate	30.6%	30.6%
(Adjustment)
Dividend income and other items permanently excluded from taxable income	(15.8)	(21.1)
Taxable amount pertaining to specified foreign subsidiaries, etc.	0.1	0.8
Per capita rate of resident tax	0.2	0.1
Experimentation and research expenses and other special tax credits	(1.8)	(1.4)
Withholding tax relating to dividends from foreign subsidiaries
	1.7	3.0
Changes in valuation allowance	(3.2)	3.9
Other	(0.8)	0.4
Actual effective tax rate after the application of tax effect accounting	11.0	16.3

3. The Company had previously applied the consolidated tax payment system, but in the previous fiscal year, we submitted a "Notification for Not Transferring to the Group Tax-Sharing System." Therefore, the Company transfers to the nonconsolidated tax payment system from the fiscal year under review. The impact of this change on the financial statements is immaterial. In line with this, based on the treatment in Paragraph 33 of the "Practical Solution on the Accounting and Disclosure Under the Group Tax-Sharing System" (ASBJ Practical Issues Task Force No. 42, August 12, 2021), tax effect accounting has been applied from the financial statements related to the end of the fiscal year under review with the assumption that the non-consolidated tax payment system will be applied from the following fiscal year.

(Revenue recognition)

The information that forms a basis for understanding revenue from contracts with customers is included in "Notes to revenue recognition" in the consolidated financial statements, and therefore notes are omitted.

(Significant subsequent events)

Notes are omitted because they are included in "Notes to significant subsequent events" in the consolidated financial statements.

(iv) Supplementary Schedules

[Schedule of property, plant and equipment, etc.]


Category	Type of asset	Balance at beginning of period	Increase during period
Property, plant and equipment	Buildings	16,546	165
	Structures	602	1
	Machinery and equipment	3,073	943
	Vehicles	3	2
	Tools, furniture and fixtures	988	323
	Molds	563	589
	Land	8,498	238
	Construction in progress	1,016	2,102
	Other	9	19
	Total	31,303	4,381
Intangible assets	Software	272	65
	Other	25	60
	Total	297	125

					(millions of yen)
Category	Type of asset	Decrease during period	Amortization during period	Balance at end of period	Accumulated depreciation
Property, plant and equipment	Buildings	5	926	15,780	9,348
	Structures	-	59	544	677
	Machinery and equipment	30	687	3,299	7,563
	Vehicles	0	1	3	27
	Tools, furniture and fixtures	6	422	883	8,568
	Molds	0	592	559	61,874
	Land	-	-	8,737	-
	Construction in progress	2,055	-	1,063	-
	Other	-	5	23	31
	Total	2,098	2,694	30,896	88,090
Intangible assets	Software	8	129	199	-
	Other	59	0	25	-
	Total	68	130	224	-

(Notes)

1. "Increase during period" is mainly due to the following.

Construction in progress:

Purchase and manufacture of machinery and equipment

614 Millions of yen

2. "Decrease during period" is mainly due to the following.

Construction in progress:

Machinery and equipment used for business

943 Millions of yen

[Schedule of provisions]

				(millions of yen)
Item	Balance at beginning of period	Increase during period	Decrease during period	Balance at end of period
Allowance for doubtful accounts	282	3,090	-	3,372
Provision for bonuses	1,262	1,518	1,262	1,518

(2) Details of major assets and liabilities

A description is omitted because the Company prepares consolidated financial statements.

(3) Others

Not applicable.

VI. Stock-Related Administration for the Company

The Fiscal year	From April 1 to March 31
Annual General Meeting of Shareholders	In June
Record date	March 31
Record date for dividends of surplus	September 30 March 31
Number of shares consisting one unit	100 shares
Purchase of shares of less than one unit
	(Special account) 1-3-3 Marunouchi, Chiyoda-ku. Tokyo
Handling office	Mizuho Trust & Banking Co., Ltd., Head Office Stock Transfer Agency Department
Shareholder register administrator	(Special account) 1-3-3 Marunouchi, Chiyoda-ku, Tokyo Mizuho Trust & Banking Co., Ltd.
Agency	-
Purchasing fee	Free of charge
Method of public notice	The Company's method of public notice shall be electronic public notice. However, in cases where electronic public notice cannot be given due to accidents or other unavoidable circumstances, such public notice shall be given by publication in The Nihon Keizai Shimbun. Publication URL: https://www.nifco.com/
Privileges for shareholders	Not applicable.

VII. Reference Information on the Company

1. Information on the Parent Company, etc. of the Company

The Company does not have a parent company, etc.

2. Other Reference Information

The following documents were filed between the beginning of the fiscal year under review and the filing date of the Annual Securities Report.

(1) Annual Securities Report and documents attached thereto, and Confirmation Letter thereof

The 70th fiscal year (from April 1, 2021, to March 31, 2022) Filed with the Director-General of the Kanto Local Finance Bureau on June 23, 2022

(2) Correction Report of Annual Securities Report and documents attached thereto, and Confirmation Letter thereof

Filed with the Director-General of the Kanto Local Finance Bureau on June 30, 2022

Filed with the Director-General of the Kanto Local Finance Bureau on September 20, 2022

These are the Correction Report of Annual Securities Report for the 70th fiscal year (from April 1, 2021, to March 31, 2022) and documents attached thereto, and Confirmation Letter thereof.

(3) Internal Control Report and documents attached thereto

Filed with the Director-General of the Kanto Local Finance Bureau on June 23, 2022

(4) Quarterly Securities Report and Confirmation Letter thereof

(First quarter of the 71st fiscal year) (from April 1, 2022, to June 30, 2022) Filed with the Director-General of the Kanto Local Finance Bureau on August 9, 2022

(Second quarter of the 71st fiscal year) (from July 1, 2022, to September 30, 2022) Filed with the Director-General of the Kanto Local Finance Bureau on November 11, 2022

(Third quarter of the 71st fiscal year) (from October 1, 2022, to December 31, 2022) Filed with the Director-General of the Kanto Local Finance Bureau on February 10, 2023

(5) Extraordinary Report

Filed with the Director-General of the Kanto Local Finance Bureau on June 30, 2022

This is an Extraordinary Report according to Article 19, Paragraph 2, Item 9-2 of the Cabinet Office Ordinance on Disclosure of Corporate Affairs (Results of exercise of voting rights at Annual General Meetings of Shareholders).

(6) Securities Registration Statement and documents attached thereto

Filed with the Director-General of the Kanto Local Finance Bureau on May 18, 2023

(7) Status Report of Repurchase of Treasury Shares

Reporting period (from February 1, 2023, to February 28, 2023) Filed with the Director-General of the Kanto Local Finance Bureau on March 9, 2023

Reporting period (from March 1, 2023, to March 31, 2023 ) Filed with the Director-General of the Kanto Local Finance Bureau on April 11, 2023

Reporting period (from April 1, 2023, to April 30, 2023) Filed with the Director-General of the Kanto Local Finance Bureau on May 12, 2023

Part II. Information on the Guarantee Companies, etc. of the Company

Not applicable.

Independent Auditor's Report

June 22, 2023

KPMG AZSA LLC
Tokyo Office

To the Board of Directors of Nifco Inc.

Designated Limited Liability Partner Engagement Partner

Hiroshi Takasaki, certified public accountant

Designated Limited Liability Partner Engagement Partner

Michiko Muramatsu, certified public accountant

<Report on the Audit of the Consolidated Financial Statements>

Opinion

We have audited the accompanying consolidated financial statements of Nifco Inc. ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group"), which are comprised of the consolidated balance sheet as at March 31, 2023, and the consolidated statements of income and comprehensive income, changes in shareholders' equity and cash flows for the year then ended, and significant matters serving as the basis for preparing consolidated financial statements, other notes and consolidated supplementary schedules.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Group as at March 31, 2023, and its financial performance and its cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in Japan, Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters arc those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Validity of valuation of non-current assets held by Nifco KTW America Corporation
The key audit matter	How the matter was addressed in our audit
As described in (Significant accounting estimates) in [Notes to Consolidated Financial Statements], in the consolidated statement of income and consolidated statement of comprehensive income of Nifco Inc. for the fiscal year ended March 31, 2023, an impairment loss of 1,065 million yen on non-current assets held by Nifco KTW America Corporation, a consolidated subsidiary in the U.S.A., which operates the German automobile business in the Industrial plastic parts & components segment. As Nifco KTW America Corporation has adopted U.S. GAAP, when an indication of impairment is identified and a recoverability test shows that the total amount of undiscounted future cash flows from an asset group is less than the book value, the difference between the book value and fair value is recognized as an impairment loss. Nifco KTW America Corporation's profitability has deteriorated significantly due to delays in reflecting higher personnel expenses, etc. in product prices and a slow improvement in the production yield. An indication of impairment was identified in its non-current assets, and a recoverability test was conducted. As a result, the total amount of undiscounted future cash flows from the asset group is expected to be less than the book value, and the fair value is also less than the book value; thus, the difference between the fair value and the book value is recognized as an impairment loss. The fair value used to measure impairment losses was estimated by calculating based on the appraisal value by an external expert, and the selection of the valuation method and conditions for calculating the appraisal value requires a high level of expertise. Based on the above, we determined that the validity of the valuation of non-current assets held by Nifco KTW America Corporation is of the most significance in our audit of the consolidated financial statements for the fiscal year under review and is a key audit matter.	In order to evaluate the validity of the valuation of non-current assets held by Nifco KTW America Corporation, we evaluated whether sufficient and appropriate audit evidence was obtained after instructing the auditors of Nifco KTW America Corporation to conduct an audit and receiving reports on the results of the audit procedures, including the following. (1) Assessment of internal control Assessment of the development of internal controls related to the estimate of fair value in impairment testing of non-current assets (2) Assessment of the reasonableness of the estimate of fair value Evaluation of the reasonableness mainly through the following procedures using experts of the evaluation in the network of firms to which the auditors of Nifco KTW America Corporation belong • Assessment of the suitability, competence and objectivity of external evaluation experts used by management • Assessment of the appropriateness of the selection of the valuation method and conditions used to calculate the appraisal value that underlies the estimate of fair value, and of the reliability and applicability, etc. of the underlying data

Other Information

The other information comprises the information included in the Annual Securities Report, but does not include the consolidated financial statements, the financial statements, and our auditor's reports thereon. Management is responsible for the preparation and presentation of the other information. The Audit & Supervisory Committee is responsible for overseeing the directors' performance of their duties with regard to the design, implementation and maintenance of the reporting process for the other information.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and the Audit & Supervisory Committee for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to a going concern in accordance with accounting principles generally accepted in Japan.

The Audit & Supervisory Committee is responsible for overseeing the directors' performance of their duties with regard to the design, implementation and maintenance of the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The selection and application of audit procedures are at the discretion of the auditor.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group's internal control.
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
•	Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
•	Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with accounting principles generally accepted in Japan, and whether the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit & Supervisory Committee regarding, among other matters, the planned scope and timing or the audit, and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Audit & Supervisory Committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

<Report on the Audit of the Internal Control Report>

Opinion

We also have audited the accompanying internal control report of Nifco Inc. ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group") as at March 31, 2023. In our opinion, the accompanying internal control report, which states that the internal control over financial reporting was effective as at March 31, 2023, presents fairly, in all material respects, the results of the assessments of internal control over financial reporting in accordance with assessment standards for internal control over financial reporting generally accepted in Japan.

Basis for Opinion

We conducted our audit of the internal control report in accordance with auditing standards for internal control over financial reporting generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Internal Control Report section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and the Audit & Supervisory Committee for the Internal Control Report Management is responsible for the design and operation of internal control over financial reporting and the preparation and fair presentation of the internal control report in accordance with assessment standards for internal control over financial reporting generally accepted in Japan. The Audit & Supervisory Committee is responsible for overseeing and examining the design and operation of internal control over financial reporting. Internal control over financial reporting may not completely prevent or detect financial statement misstatements.

Auditor's Responsibilities for the Audit of the Internal Control Report Our objectives are to obtain reasonable assurance about whether the internal control report is free from material misstatement based on our audit of the internal control report and to issue an auditor's report that includes our opinion. As part of our audit in accordance with auditing standards for internal control over financial reporting generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Perform procedures to obtain audit evidence about the results of the assessments of internal control over financial reporting in the internal control report. The procedures for the audit of the internal control report are selected and performed, depending on the auditor's judgment, based on significance of effect on the reliability of financial reporting.
•	Evaluate the overall presentation of the internal control report, including the appropriateness of the scope, procedures and results of the assessments that management presents.
•	Obtain sufficient appropriate audit evidence about the results of the assessments of internal control over financial reporting in the internal control report. We are responsible for the direction, supervision and performance of the audit of the internal control report. We remain solely responsible for our audit opinion.

We communicate with the Audit & Supervisory Committee regarding, among other matters, the planned scope and timing of our audit of the internal control report, the results thereof, material weaknesses in internal control identified during our audit of internal control report, and those that were remediated.

Interest Required to Be Disclosed by the certified public accountants Act of Japan

We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the certified public accountants Act of Japan

1) The original copy of the above audit report is kept separately by the Company ( filing company of the Annual Securities Report).

2) XBRL data is not audited.

June 22, 2023

KPMG AZSA LLC
Tokyo Office

To the Board of Directors of Nifco Inc.

Designated Limited Liability Partner

Hiroshi Takasaki, certified public accountant

Engagement Partner

Designated Limited Liability Partner

Engagement Partner

Michiko Muramatsu, certified public accountant

Opinion

We have audited the non-consolidated financial statements of Nifco Inc. ("the Company"), which are comprised of the balance sheet as at March 31, 2023, the statements of income, the statement of changes in net assets for the year then ended and notes, comprising a summary of significant accounting policies and other explanatory information.

In our opinion, the non-consolidated financial statements present fairly, in all material respects, the financial position of the Company as at March 31, 2023, and its financial performance for the year then ended in accordance with accounting principles generally accepted in Japan.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Reasonableness of valuation of loans to Nifco KTW America Corporation
The key audit matter	How the matter was addressed in our audit
In the balance sheet of Nifco Inc. for the fiscal year ended March 31, 2023, short-term loans receivable from subsidiaries and associates of 2,023 million yen and long-term loans receivable from subsidiaries and associates of 9,162 million yen are recorded. As described in "(Significant accounting policies) 3. Basis for provisions" and (Significant accounting estimates) in [Notes to Consolidated Financial Statements], for loans and receivables requiring special attention such as doubtful receivables, an allowance for doubtful accounts is provided for the uncollectible amounts estimated taking into consideration the collectability of each receivable. With regard to doubtful receivables, it is required to assess their recoverability and estimate the allowance for doubtful receivables by comprehensively judging the debtor's financial position and operating results, the degree of negative net worth, and the debtor's solvency based on business activities. Nifco Inc. has evaluated the recoverability of loans to Nifco KTW America Corporation based on its financial position and operating results. Specifically, the valuation is based on the amount of Nifco KTW America Corporation's net assets that would be recoverable if the company was liquidated at the time of the estimate. In making such a valuation, the reliability of the amount of Nifco KTW America Corporation's net assets is affected by the information contained in "Validity of valuation of non-current assets held by Nifco KTW America Corporation," which is a key audit matter of the consolidated financial statements. Based on the above, we determined that the reasonableness of the valuation of loans to Nifco KTW America Corporation is of the most significance in our audit of the financial statements for the fiscal year under review and is a key audit matter.	In order to assess the reasonableness of valuation of the loan to Nifco KTW America Corporation, we conducted the following procedures. (1) Assessment of internal control We assessed the effectiveness of the development and operation of internal controls on the valuation of loan. (2) Assessment of reasonableness of judgment on valuation of loans to subsidiaries and associates • We examined the credibility of the financial statements used as the basis for determining the recoverability of loans to Nifco KTW America Corporation. In assessing the credibility of the financial statements, we examined whether sufficient and appropriate audit evidence was obtained after instructing the auditors of Nifco KTW America Corporation to conduct an audit and receiving reports on the results of the audit procedures, including the following. • Audit procedures described in "(2) Assessment of the reasonableness of the estimate of fair value" in "How the matter was addressed in our audit" under a key audit matter of the consolidated financial statements "Validity of valuation of non-current assets held by Nifco KTW America Corporation" • We confirmed that the recoverability of the loans to Nifco KTW America Corporation was evaluated based on the amount of net assets in its financial statements.

Other Information

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and the Audit & Supervisory Committee for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to a going concern in accordance with accounting principles generally accepted in Japan.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The selection and application of audit procedures are at the discretion of the auditor.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Company's internal control.
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
•	Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
•	Evaluate whether the presentation and disclosures in the financial statements are in accordance with accounting standards generally accepted in Japan, and whether the overall presentation, structure and content of the financial statements, including the disclosures, and financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Audit & Supervisory Committee regarding, among other matters, the planned scope and timing of the audit, and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with the Audit & Supervisory Committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Interest Required to Be Disclosed by the certified public accountants Act of Japan

We do not have any interest in the Company which is required to be disclosed pursuant to the provisions of the certified public accountants Act of Japan.

1) The original copy of the above audit report is kept separately by the Company (filing company of the Annual Securities Report).

2) XBRL data is not audited.

[Cover]

[Document filed]	Confirmation Letter
[Applicable law]	Article 24-4-2, Paragraph 1 of the Financial Instruments and Exchange Act
[Filed to]	Director-General, Kanto Local Finance Bureau
[Filing date]	June 22, 2023
[Company name]	Nifco Inc.
[Company name (English)]	Nifco Inc.
[Title and name of representative]	Masaharu Shibao, President & Representative Director
[Title and name of Chief Financial Officer]	Toshiki Yauchi, Director & Senior Executive Managing Officer, CFO
[Address of head office]	5-3 Hikarinooka, Yokosuka-shi, Kanagawa
[Place where available for public inspection]	Tokyo Stock Exchange, Inc. (2-1, Nihonbashi-kabutocho, Chuo-ku, Tokyo)

1. Matters Related to Adequacy of Statements Contained in the Annual Securities Report

Masaharu Shibao, President & Representative Director, and Toshiki Yauchi, Director & Senior Executive Managing Officer, CFO, confirmed that statements contained in the Annual Securities Report for the 71st fiscal year (from April 1, 2022, to March 31, 2023) were adequate under the Financial Instruments and Exchange Act.

2. Special Notes

None.

[Cover]

[Document filed]	Internal Control Report
[Applicable law]	Article 24-4-4, Paragraph 1 of the Financial Instruments and Exchange Act
[Filed to]	Director-General, Kanto Local Finance Bureau
[Filing date]	June 22, 2023
[Company name]	Nifco Inc.
[Company name (English)]	NIFCO INC.
[Title and name of representative]	Masaharu Shibao, President & Representative Director
[Title and name of Chief Financial Officer]	Toshiki Yauchi, Director & Senior Executive Managing Officer, CFO
[Address of head office]	5-3 Hikarinooka, Yokosuka-shi, Kanagawa
[Place where available for public inspection]	Tokyo Stock Exchange, Inc. (2-1, Nihonbashi-kabutocho, Chuo-ku, Tokyo)

1. Matters Relating to the Basic Framework for Internal Control over Financial Reporting

Masaharu Shibao, President & Representative Director, and Toshiki Yauchi, Director & Senior Executive Managing Officer, CFO, are responsible for designing and operating internal control over financial reporting of the Company and its consolidated subsidiaries (hereinafter referred to as the "Group"), and have designed and operated internal control over financial reporting in accordance with the basic framework for internal control set forth in the "On the Revision of Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions)" to ensure adequacy and reliability of statements contained in the Group's financial reporting.

Internal control over financial reporting may not function effectively due to errors in judgment, carelessness or collusion by multiple persons in charge, or may not necessarily respond to changes in the internal and external environment or atypical transactions that were not initially anticipated. Because of its inherent limitations, it is not certain to achieve its objective and may not be able to completely prevent or detect misstatements in financial reporting.

2. Matters Relating to Scope of Assessment, Assessment Date and Assessment Procedures

The assessment of internal control over financial reporting was performed on the assessment date as of March 31, 2023, the end of the fiscal year under review. The assessment was performed in accordance with assessment standards for internal control over financial reporting generally accepted in Japan.

In making this assessment, we evaluated internal controls which may have a material effect on the entire financial reporting on a consolidation basis ("company-level controls'") and based on the result of this assessment, we appropriately selected business processes to be tested. We analyzed these selected business processes, identified key controls that may have a material impact on the reliability of our financial reporting, and assessed the design and operation of these key controls. These procedures have allowed us to evaluate the effectiveness of our internal control.

We determined the required scope of assessment of internal control over financial reporting for the Company, as well as its consolidated subsidiaries and equity-method associates, from the perspective of materiality that may affect the reliability of our financial reporting. This materiality that may affect the reliability of financial reporting is determined by taking into account the materiality of quantitative and qualitative impacts. We confirmed that we had reasonably determined the scope of assessment of internal controls over business processes in light of the results of assessment of company-level controls conducted for the Company, as well as its 25 consolidated subsidiaries. We judged that 27 consolidated subsidiaries and 1 equity-method associate, which do not have any quantitatively or qualitatively material impact on the consolidated financial statements, are outside the scope of assessment of company-level controls.

Regarding the scope of assessment of internal control over business processes, 10 business units whose combined net sales reached approximately two-thirds of total consolidated net sales (after elimination of intercompany transactions) were selected as significant business units. At the selected significant business units, we included, in the scope of assessment, those business processes leading to net sales, accounts receivable-trade and inventories as significant accounts that may have a material impact on the business objectives of the Company. Further, not only for selected significant business units, but also for all the business units, we added to the scope of assessment as business processes having greater materiality considering their impact on the financial reporting, those business processes relating to greater likelihood of material misstatements in significant accounts involving estimates or forecasts and those business processes relating to businesses or operations dealing with high-risk transactions.

3. Matters Related to the Results of the Assessment

As a result of the assessments above, we concluded that our internal control over financial reporting was effective as of March 31, 2023.

4. Supplementary Matters

Not applicable.

5. Special Notes

Not applicable.

2f:T24d54,

NIFCO Germany GmbH

Weißenburg

Jahresabschluss mit Bericht zur Gleichstellung und Entgeltgleichheit nach EntgTranspG als Anlage des Lageberichts zum Geschäftsjahr vom 01.01.2022 bis zum 31.12.2022

Lagebericht für das Geschäftsjahr 2022

I. Grundlagen des Unternehmens

Geschäftsmodell des Unternehmens

Die NIFCO Germany GmbH, Weißenburg (im Folgenden kurz "Gesellschaft" genannt), ist vorrangig im Zulieferbereich der Automobilindustrie tätig. Das Hauptumsatzvolumen ist die Spritzgussproduktion von Kunststoffartikeln bzw. Baugruppen sowie die Industrielackierung von diesen Teilen für die Automobilindustrie sowie die Entwicklung von Kunststoffspritzgießwerkzeugen und Versuchsformen.

Dabei versteht sich die NIFCO Germany GmbH nicht als Kunststoff-Lohnspritzerei, sondern vielmehr als Systementwickler für kinematische, komplexe Bauteile mit qualitativ hochwertigen Oberflächen auf einem hohen technischen Niveau.

Eine der Stärken der Gesellschaft liegt weiterhin in der allgemeinen Firmenkonzeption. Der Verbund mit der Firma SEGO GmbH, Solingen, (technische Konzeption und Werkzeugbeschaffung) zeigt sich auf dem Markt als erfolgreiches Modell.

Durch unsere Tochtergesellschaft NIFCO KTW America Corporation, Toccoa, Georgia/USA, können wir auch den US-amerikanischen Markt beliefern.

Steuerungssystem

Die Gesellschaft bedient sich zur internen Unternehmenssteuerung unterschiedlicher finanzieller Leistungsindikatoren. Zu den wichtigsten Indikatoren zur Steuerung der Gesellschaft gehören Umsatz und EBIT (Ergebnis vor Zinsen und Steuern).

Darüber hinaus haben wir keinen weiteren wesentlichen finanziellen und nichtfinanziellen Leistungsindikator identifiziert.

Forschung und Entwicklung

Unsere Forschungs- und Entwicklungsaktivitäten erfolgen in Zusammenarbeit mit unseren Kunden. Dabei verfolgen wir das Ziel, technologisch führende und innovative Produkte anzubieten, und legen dabei besonderen Wert auf Wirtschaftlichkeit, Umweltschutz und Nachhaltigkeit des gesamten Produktportfolios.

II. Wirtschaftsbericht

Entwicklung von Branche und Gesamtwirtschaft

Im Jahr 2022 machten weiterhin Autos mit klassischem Verbrennungsmotor den Großteil der deutschen Pkw-Exporte und -Importe aus, allerdings gewinnt der Außenhandel mit Elektrofahrzeugen zunehmend an Bedeutung. Im Jahr 2022 wurden rund 500.000 Elektrofahrzeuge im Wert von 24,2 Milliarden Euro exportiert. Das waren knapp zwei Drittel (+65,2 %) mehr als im Vorjahr.

Auch bei den Importen gab es einen Anstieg: Mit 358.000 importierten Elektroautos für 10,5 Milliarden Euro waren es 22,2 % mehr als im Jahr 2021 (293.000 Stück im Wert von 7,6 Milliarden Euro).

Die Exporte von Verbrennern waren 2022 dagegen in etwa auf dem Niveau des Vorjahres: In den drei wichtigsten Hubraumklassen für Pkw mit ausschließlich Verbrennungsmotoren wurden insgesamt 1,48 Millionen Autos im Wert von 55,5 Milliarden Euro exportiert, mengenmäßig 0,3 % weniger als im Jahr 2021. Damals exportierte die deutsche Autobranche 1,49 Millionen Verbrenner im Wert von 48,6 Milliarden Euro.

Bei den hybridangetriebenen Pkw war die Entwicklung uneinheitlich. Im vergangenen Jahr wurden 640.500 so genannte Mild-Hybride mit Verbrennungs- und Elektromotor für 28,5 Milliarden Euro exportiert - 16,4 % mehr als 2021. Importiert wurden 272.000 Hybride (+32,5 % gegenüber Vorjahr) für 8,0 Milliarden Euro. Bei den Plug-In-Hybriden gab es im Jahr 2022 einen Export-Rückgang: 253.300 Hybride für 11,4 Milliarden Euro wurden ausgeführt und damit 4,0 % weniger als im Vorjahr. Importiert wurden 250.600 Hybride (+12,4 %) für 9,0 Milliarden Euro.

Die Automobilindustrie ist gemessen am Umsatz die größte Branche des Verarbeitenden Gewerbes. Die 63 Betriebe im Bereich der Herstellung von Personenkraftwagen und Personenkraftwagenmotoren erwirtschafteten im Jahr 2022 einen Rekordumsatz von 385,1 Milliarden Euro, auch aufgrund der gestiegenen Preise. Das sind 17,4 % des gesamten Umsatzes der Industrie in Deutschland.

Im Vergleich zum Vorjahr (295,4 Milliarden Euro) stieg der Umsatz der Autoindustrie damit um fast ein Drittel (30,4 %) und lag um 21,3 % über dem Vorkrisenniveau des Jahres 2019. Damals hatte er 317,5 Milliarden Euro betragen. Ein Großteil der Umsätze erzielt die Branche durch Exporte: Der Auslandsumsatz machte 2022 gut drei Viertel (76,0 %) des Gesamtumsatzes aus.

Nach Angaben des Kraftfahrt-Bundesamtes wurden im Jahr 2022 rund 471.000 reine Elektroautos neu zugelassen - ein Plus von 32,2 % gegenüber dem Vorjahr mit 356.000 Neuzulassungen. Demgegenüber standen 1,3 Millionen Neuzulassungen von Pkw mit fossilem Verbrennungsmotor. Damit erreichten Elektro-Pkw einen Anteil von 17,7 % an den Neuzulassungen insgesamt. 2017 hatte der Anteil der E-Autos an den gesamten Pkw-Neuzulassungen noch 0,7 % betragen. (Quelle: Statistisches Bundesamt)

Nach Angabe des Statistischen Bundesamtes ist die Deutsche Wirtschaftsleistung 2022 gestiegen. Das preisbereinigte Bruttoinlandsprodukt (BIP) war um 1,9 % höher als 2021.

Die preisbereinigte Bruttowertschöpfung stieg im Verarbeitenden Gewerbe um 0,2 % gegenüber dem Vorjahr.

Einige Dienstleistungsbereiche profitierten nach dem Wegfall nahezu aller Corona-Schutzmaßnahmen von Nachholeffekten.

Die privaten Konsumausgaben waren um 4,6 % höher als im Jahr 2021.

Die sonstigen Anlagen, zu denen unter anderem die Investitionen in Forschung und Entwicklung gehören, lagen nach ersten Schätzungen mit 2,1 % deutlich über dem Vorjahresniveau.

Die Wirtschaftsleistung in Deutschland wurde im Jahresdurchschnitt 2022 von 45,6 Millionen Erwerbstätigen mit Arbeitsort Deutschland erbracht. Das waren etwa 1,3 % mehr Erwerbstätige als im Vorjahr.

Geschäftsverlauf der Gesellschaft

Allgemeines

Die Gesellschaft blickt auf ein durchwachsenes Geschäftsjahr 2022 zurück, welches deutlich durch den Ukraine-Konflikt geprägt war. Weiterhin beeinflussten die Halbleiter-Problematik sowie die Corona-Situation den Markt.

Die erzielten Umsätze der Gesellschaft lagen knapp unter dem Vorjahresniveau und somit auch deutlich unter den Planungen bzw. der Prognose aus dem Vorjahr.

Die Gesellschaft wurde auch im Jahr 2022 erfolgreich zertifiziert.

Standort Weißenburg: IATF 16949, ISO 14001 und ISO 50001

Standort Solingen: IATF 16949, ISO 14001

Ertragslage

	2022 (in Euro)	2021 (in Euro)
Umsatzerlöse	116.302.356,35	117.966.411,75
Rohergebnis	49.467.002,68	56.224.817,17
Personalaufwand	32.924.029,05	30.701.678,02
EBITDA(inkl. Gewinnabführung SEGO GmbH)	-2.506.545,86	8.420.485,53
Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen	8.488.581,54	8.639.344,56
Abschreibungen auf Vermögensgegenstände des Umlaufvermögens, soweit diese die in der Kapitalgesellschaft üblichen Abschreibungen überschreiten	0,00	8.500.000,00
Abschreibungen auf Finanzanlagen und auf Wertpapiere des Umlaufvermögens	0,00	26.492.439,93
EBIT(inkl. Gewinnabführung SEGO GmbH)	-10.995.127,40	-35.211.298,96

Umsatzentwicklung

Die Umsatzerlöse betrugen im laufenden Geschäftsjahr 116,30 Mio. € und sind im Vergleich zum Vorjahr (117,97 Mio. €) um 1,4 % gesunken. Grund für den leichten Abbau sind im Wesentlichen die Anpassungen der Kundenabrufe.

Der Materialaufwand in Höhe von 70,84 Mio. € ist gegenüber dem Vorjahr (61,59 Mio. €) absolut und prozentual zur Gesamtleistung (Umsatz +/- Bestandsveränderung) deutlich gestiegen. Dies hängt hauptsächlich mit den der Ukraine-Krise geschuldeten Materialpreiserhöhungen zusammen.

Die Aufgliederung der Umsätze nach Regionen / Segmenten ist im Anhang ersichtlich.

Geschäftsergebnis

Das Rohergebnis von 49,47 Mio. € ist im Vergleich zum Vorjahr (56,22 Mio. €) deutlich gesunken und spiegelt den erhöhten Materialaufwand entsprechend wider. Das EBIT (Ergebnis vor Zinsen und Steuern, aber nach Ergebnisabführung) als wesentlicher finanzieller Leistungsindikator beläuft sich im Geschäftsjahr auf -11,00 Mio. € nach -35,21 Mio. € im Vorjahr und ist im Jahr 2022 demnach deutlich gestiegen, was im Wesentlichen auf die im Vorjahr gebuchten außerplanmäßigen Abschreibungen auf Finanzanlagen sowie auf Wertberichtigungen auf Forderungen gegen verbundene Unternehmen zurückzuführen ist.

Die Entwicklung des EBIT im Geschäftsjahr entsprach somit nicht den Erwartungen.

Die Personalkosten sind im Laufe des Jahres 2022 um T€ 2.222 bzw. 7,24 % gestiegen. Der Grund hierfür liegt im Wesentlichen an einer erhöhten Krankheitsquote im Zusammenhang mit Corona und der damit verbundenen Aufstockung an Leiharbeitskräften zur Absicherung der Produktion.

Im Jahresdurchschnitt wurden 718 (Vj. 723) aktive Mitarbeiter beschäftigt.

Die sonstigen betrieblichen Aufwendungen belaufen sich auf T€ 20.284 (Vj. T€ 19.014) und beinhalten Raumkosten (T€ 7.710), Kosten der Warenabgabe (T€ 3.172), laufende Instandhaltung (T€ 1.784), Versicherungen und Beiträge (T€ 613) sowie sonstige Verwaltungsaufwendungen (T€ 7.005).

Das Ergebnis (Jahresfehlbetrag) des Geschäftsjahres 2022 verfehlte die Erwartungen und betrug 18,06 Mio. € (Vj. 35,39 Mio. € Jahresfehlbetrag).

Die Abschreibung auf immaterielle Vermögensgegenstände des Anlagevermögens resultiert im Wesentlichen aus der erfolgten Anwachsung von aktivierten immateriellen Vermögensgegenständen einschließlich eines Geschäfts- und Firmenwertes i. H. v. T€ 3.040 (Vj. T€ 3.621).

Die Steuern vom Einkommen und vom Ertrag beinhalten Aufwendungen i. H. v. T€ 6.889 (Vj. T€ 23) für die Auflösung aktiver latenter Steuern.

Finanzlage

Der im Jahr 2022 durch einen von der Muttergesellschaft abgesicherten Banken-Kreditrahmen betrug 24 Millionen Euro. Dieser wurde zum 31.12.2022 zu 100 % ausgeschöpft. Im Gegenzug beliefen sich die liquiden Mittel zum gleichen Zeitpunkt auf rd. 8,4 Millionen Euro. Weiterhin konnte im Laufe der ersten 5 Monate des Jahres 2023 der in Anspruch genommene Kreditrahmen auf 19 Millionen Euro reduziert werden.

Unser Forderungsbestand ist insgesamt als gesund einzustufen, sodass (aufgrund der sehr guten Bonität unserer Kunden) mit keinen größeren Ausfällen zu rechnen ist.

NIFCO Germany finanziert sich neben dem Cash Flow aus der eigenen Tätigkeit im Wesentlichen aus der NIFCO-Gruppe und Kreditinstituten.

Die Gesellschaft war jederzeit in der Lage, die fälligen Zahlungsverpflichtungen zu erfüllen.

Der vereinfachte Cashflow, ermittelt aus dem Jahresfehlbetrag und korrigiert um die Abschreibung, lag mit T€ -9.570 (Vj. T€ 8.244) unterhalb der Planungen.

Vermögenslage

―	fortgeschriebener Geschäfts- und Firmenwert T€ 6.080 (Vj. T€ 9.120)

Das Anlagevermögen beträgt im Vergleich zur Bilanzsumme 38,64 % und hat sich im Vergleich zum Vorjahr reduziert. Die Forderungen gegen verbundene Unternehmen haben sich im Wesentlichen aufgrund der Gewinnabführung (SEGO GmbH) um T€ 1.279 erhöht.

Die Abschreibungen auf Anlagevermögen beliefen sich insgesamt auf T€ 8.489.

Im Jahr 2022 wurde hauptsächlich in den Ausbau der Produktion investiert. Ferner wurden verschiedenste kleinere Investitionen vorgenommen zur Erweiterung und Modernisierung der Betriebsausstattung.

Die Vorräte haben sich im Vergleich zum Vorjahr (T€ 30.481) nur geringfügig verändert und belaufen sich zum 31.12.2022 auf T€ 30.302.

Die Forderungen aus Lieferungen und Leistungen sind im Geschäftsjahr 2022 um T€ 2.054 auf T€ 9.114 gesunken. Die Forderungen bestehen gegenüber wenigen Großkunden mit guter Bonität.

Die Forderungen gegen verbundene Unternehmen in Höhe von T€ 4.915 (i. Vj. T€ 3.636) bestehen im Wesentlichen gegenüber dem Tochterunternehmen SEGO GmbH aufgrund von Gewinnabführung (T€ 4.258; i. Vj. T€ 3.024).

Die Verbindlichkeiten gegenüber verbundenen Unternehmen (inkl. Verbindlichkeiten gegenüber Gesellschaftern) teilen sich wie folgt auf:

	31.12.2022	31.12.2021
NIFCO Inc., Japan	T€ 72	T€ 115
NIFCO KTW America Corporation, Toccoa/Georgia, USA	T€ 24	T€ 45
SEGO GmbH, Deutschland	T€ 2.761	T€ 577
NIFCO Germany d.o.o., Subotica, Serbien	T€ 75	T€ 0
Summe	T€ 2.932	T€ 737

Finanzielle und nichtfinanzielle Leistungsindikatoren

Wir ziehen für unsere interne Unternehmenssteuerung v.a. die Kennzahlen Umsatz sowie EBIT heran, deren Entwicklung im Rahmen der Ausführungen zur Vermögens , Finanz- und Ertragslage erläutert wird.

Nicht finanzielle Leistungsindikatoren sind von untergeordneter Bedeutung und deshalb nicht aufgeführt.

Gesamtaussage

Aufgrund der Marktentwicklung im Jahr 2022 ist das Jahresergebnis entsprechend belastet. Der Trend im Jahr 2023 zeigt aber eine deutlich positive Ertragslage. Von daher beurteilen wir die Lage der Gesellschaft in Bezug auf die Entwicklung des operativen Geschäfts positiv.

Die Finanz- und Vermögenslage stellt sich zum Zeitpunkt der Aufstellung des Lageberichts als solide dar.

Trotz der Herausforderungen im Automobilzulieferbereich sowie unter Beachtung aller zum Zeitpunkt der Erstellung des Lageberichts bekannten Gegebenheiten und Fakten liegen gegenwärtig keine Risiken vor, welche die Vermögens-, Finanz- und Ertragslage der NIFCO Germany GmbH wesentlich und nachhaltig beeinträchtigen oder deren Fortbestand in absehbarer Zeit gefährden.

III. Prognosebericht

Die Prognose steht unter der Annahme, dass die für die Geschäftsentwicklung der Gesellschaft wesentlichen gesamtwirtschaftlichen Rahmenbedingungen im Automobilsektor sich stabil entwickeln. Die Prognose für 2023/2024 basiert auf der aktuellen bestehenden Auftragslage der Gesellschaft und unterstellt, dass es in den nächsten Monaten keine gravierenden Einschnitte durch externe Ereignisse geben wird.

Nach Aussage des VDA (Verband der Autoindustrie) wird in Deutschland für 2023 mit einem Rückgang der Neuzulassungen für E-Fahrzeuge gerechnet. Es bleibt abzuwarten, wie sich die Kraftfahrzeugbranche in Zukunft entwickeln wird.

Die Auftragslage für die kommenden Jahre kann als stabil bewertet werden. Es liegen langfristige Direktaufträge der großen Automobilhersteller vor. Der Auslauf von Fahrzeugmodellen wird teilweise durch Neuaufträge kompensiert.

Durch weitere geplante Strukturmaßnahmen im Unternehmensbereich werden in Zukunft Voraussetzungen geschaffen, eine noch bessere Kundenzufriedenheit zu gewährleisten.

Auf Basis der aktuellen Entwicklung rechnet die Gesellschaft für das Gesamtjahr 2023 gegenüber dem Jahr 2022 mit einem deutlich höheren Umsatz sowie einem entsprechend positiven EBIT.

Wie alle Prognosen ist auch diese mit Unsicherheit behaftet und hängt von dem Eintreten der zugrunde liegenden Annahmen und Prämissen ab.

IV. Chancen- und Risikobericht

Risikobericht

Die für die Entwicklung der Gesellschaft relevanten Risiken unterliegen einem regelmäßigen Monitoring durch die Geschäftsführung, aus dem entsprechende Maßnahmen zur Risikobegrenzung bzw. -vermeidung abgeleitet werden. Zur besseren Einordnung der Relevanz der jeweiligen Risiken werden diese in Risiken mit geringen, moderaten bzw. erhöhten Auswirkungen klassifiziert.

Unsere Risiken fassen wir in den folgenden Kategorien zusammen:

Wirtschaftliche Risiken

Ein Großteil der Umsätze wird auch in Zukunft mit wenigen Großkunden erzielt werden. Hieraus ergeben sich sowohl Chancen als auch Risiken.

Die zukünftige wirtschaftliche Entwicklung der Gesellschaft ist entscheidend von den Aufträgen der Großkunden abhängig. Auf der anderen Seite zeigt die Vergangenheit, dass eine langfristige und für beide Seiten erfolgreiche Zusammenarbeit möglich ist.

Aus heutiger Sicht sieht die Geschäftsführung keine Anzeichen dafür, dass sich die Beziehungen zu den Großkunden wesentlich verschlechtern werden. Wir sehen hier daher aktuell kein Risiko. Daneben wird versucht, die Gesellschaft breiter aufzustellen und neue Kunden zu gewinnen, um die Abhängigkeit von den Großkunden weiter zu reduzieren.

Unsere Produkte laufen über einen Zeitraum von etwa 5 - 7 Jahren. Risiken der künftigen geschäftlichen Entwicklung bestehen darin, dass unsere Kunden die vorkalkulierten Abnahmemengen für die Produktlaufzeiten - insbesondere auch aufgrund von Effekten aus der Halbleiterkrise - nicht garantieren können. Diese Risiken werden als moderat eingeschätzt.

Risiken liegen außerdem in der zukünftigen Entwicklung der Automobilbranche und des Automobilzulieferermarktes. Auch in Bezug auf das Thema E-Mobility bleibt abzuwarten, wie sich der Markt in den nächsten Jahren entwickeln wird. Aktuell werden diese Risiken allerdings als gering eingeschätzt.

Rechtliche Risiken erwachsen insbesondere aus möglichen Gewährleistungsansprüchen aufgrund von Kundenreklamationen im Projektgeschäft. Durch ein effizientes Qualitätsmanagement überwachen wir laufend entsprechende Risiken. Weiterhin wurde bereits eine entsprechende Rückstellung gebildet, darüber hinaus ist kein relevantes Risiko in diesem Umfeld ersichtlich.

Personalrisiken begrenzen wir durch laufende Weiterbildungs- und Nachwuchskräfteprogramme. Weiterhin investieren wir viel in ein attraktives Arbeitsumfeld und in eine gute Außendarstellung. Das Risiko in diesem Bereich ist somit als gering einzustufen.

Auch im Bereich der Liquidität sind aufgrund der Zugehörigkeit zum "NIFCO-Konzern" keine Risiken zu erwarten. Liquiditätsengpässe sind derzeit nicht zu erwarten.

Konkrete Risiken mit Auswirkungen auf die wirtschaftliche Lage oder die voraussichtliche Entwicklung sind nicht erkennbar. Sicherungsgeschäfte wurden nicht getätigt.

Zusätzliche Risiken ergeben sich durch Insolvenzen von Kunden und daraus entstehende Forderungsausfälle. Diese sind aufgrund des Kundenportfolios jedoch als sehr gering einzustufen. Durch ein gut funktionierendes Forderungsmanagement gelang es bisher, Forderungsausfälle zu vermeiden.

Ein erhöhtes Risiko bezüglich des aktuellen Ukraine-Konfliktes sehen wir im Bereich der Zuliefer- sowie Energiekosten, da die deutlich steigenden Preise für Mineralölprodukte und Energie im Allgemeinen starken Einfluss auf unsere Produktion haben.

Um unsere Liquidität zu sichern, haben wir Liquiditätspläne erstellt und verschiedene Szenarien gegenübergestellt. Zur Absicherung haben wir bestehende Linien bei unseren Kreditgebern sowie Zusagen der Muttergesellschaft ausgenutzt. Gegenwärtig sehen wir deshalb keine Liquiditätsengpässe.

Chancenbericht

Chancen ergeben sich durch neue Modelle, auch im Zusammenhang mit der E-Mobility. Durch die beiden Produktionsstandorte in Weißenburg und Solingen können auch komplexere Baugruppen produziert werden, die nur einen geringen Anteil an Fremdleistungen benötigen. Weiterhin sehen wir Potenzial für den Aufbau des Standortes in Serbien.

Durch die Integration in die NIFCO-Gruppe ist die Gesellschaft auch in die strategischen Entscheidungsprozesse des Konzerns eingebunden und Konzernanforderungen werden in der Gesellschaft Berücksichtigung finden.

Chancen sind des Weiteren gegeben durch die Fortführung bereits bestehender Projekte aufgrund von Produktaufwertungen (Facelift).

Gesamtaussage

Risiken der künftigen Entwicklung sehen wir weiterhin in einem schwierigen Wettbewerbsumfeld im Automobilzulieferbereich.

Bericht über Zweigniederlassungen

Es bestehen folgende Zweigniederlassungen:

―	Solingen (Produktionsstandort)
―	München (Entwicklungsbüro)

Sonstige Informationen

Die Zielgröße für den Frauenanteil in der Geschäftsführung beträgt 30 %, wobei diese nicht für die aktuelle Besetzung (0 %) gilt. Die Zielerreichungsfrist beträgt 5 Jahre. Die Geschäftsführung erklärt, bei der Nachbesetzung von Führungspositionen in der Geschäftsführung und den beiden Führungsebenen unterhalb der Geschäftsführer Männern und Frauen Chancengleichheit zu gewähren.

Der Entgelttransparenzbericht gemäß § 21 EntgTransPG ist als Anlage diesem Lagebericht beigefügt.

Weißenburg, den 15. August 2023

Masaharu Shibao

Masaya Nagaoka

Ken Yokota

Tsutomu Mannari

Karsten Schmidt

Mike Schmidt

Tony Schmidt

Joan Oliveras

Yoshihiro Matsuda

Bilanz zum 31. Dezember 2022

AKTIVA

	31.12.2022		31.12.2021
	EUR	EUR	EUR	EUR
A. Anlagevermögen
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte sowie Lizenzen an solchen Rechten und Werten	234.215,01		213.790,01
2. Kundenstamm	1,00		1,01
3. Geschäfts- oder Firmenwert	6.080.095,00	6.314.311,01	9.120.142,00	9.333.933,02
II. Sachanlagen
1. Grundstücke, grundstücksgleiche Rechte und Bauten einschließlich der Bauten auf fremden Grundstücken	3.327.259,90		2.868.599,50
2. Technische Anlagen und Maschinen	12.690.970,12		12.356.102,21
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	3.548.652,53		3.568.601,53
4. Geleistete Anzahlungen und Anlagen im Bau	51.728,97	19.618.611,52	51.728,97	18.845.032,21
III. Finanzanlagen
Anteile an verbundenen Unternehmen		9.277.003,32		8.927.003,32
		35.209.925,85		37.105.968,55
B. Umlaufvermögen
I. Vorräte
1. Roh-, Hilfs- und Betriebsstoffe	5.546.673,51		5.776.283,09
2. Unfertige Erzeugnisse, unfertige Leistungen	2.781.608,11		6.902.591,56
3. Fertige Erzeugnisse und Waren	3.030.543,39		12.732.194,26
4. Werkzeuge	16.525.330,11		0,00
5. Geleistete Anzahlungen	2.417.469,21	30.301.624,33	5.430.390,80	30.841.459,71
II. Forderungen und sonstige Vermögensgegenstände
1. Forderungen aus Lieferungen und Leistungen	9.113.522,43		11.167.883,09
2. Forderungen gegen verbundene Unternehmen	4.915.274,89		3.635.891,67
3. Sonstige Vermögensgegenstände	2.953.934,10	16.982.731,42	5.785.312,11	20.589.086,87
III. Kassenbestand und Guthaben bei Kreditinstituten		8.440.437,94		7.763.531,31
		55.724.793,69		59.194.077,89
C. Rechnungsabgrenzungsposten		182.650,60		759.529,16
D. Aktive latente Steuern		0,00		6.888.769,66
		91.117.370,14		103.948.345,26
PASSIVA
			31.12.2022 EUR	31.12.2021 EUR
A. Eigenkapital
I. Gezeichnetes Kapital			25.000,00	25.000,00
II. Kapitalrücklage			96.271.705,05	96.271.705,05
III. Verlustvortrag (i. Vj. Gewinnvortrag)			-25.324.237,09	10.063.964,02
IV. Jahresfehlbetrag			-18.058.974,86	-35.388.201,11
			52.913.493,10	70.972.467,96
B. Rückstellungen
Sonstige Rückstellungen			3.974.884,64	2.382.543,76
C. Verbindlichkeiten
1. Verbindlichkeiten gegenüber Kreditinstituten			24.117.242,93	22.425.670,93
2. Erhaltene Anzahlungen			519.894,00	786.890,63
3. Verbindlichkeiten aus Lieferungen und Leistungen			4.928.684,32	4.590.014,51
4. Verbindlichkeiten gegenüber Gesellschafter			71.670,29	114.832,49
5. Verbindlichkeiten gegenüber verbundenen Unternehmen			2.859.925,92	622.286,95
6. Sonstige Verbindlichkeiten			1.731.574,94	2.053.638,03
			34.228.992,40	30.593.333,54
			91.117.370,14	103.948.345,26

Gewinn- und Verlustrechnung für die Zeit vom 1. Januar bis 31. Dezember 2022

	2022		2021
	EUR	EUR	EUR	EUR
1. Umsatzerlöse		116.302.356,35		117.966.411,75
2. Erhöhung (i. Vj. Verminderung) des Bestands an fertigen und unfertigen Erzeugnissen		2.721.869,09		-2.586.393,14
3. Sonstige betriebliche Erträge		1.278.064,47		2.435.541,58
4. Materialaufwand
a) Aufwendungen für Roh-, Hilfs- und Betriebsstoffe und für bezogene Waren	-49.716.037,57		-46.059.733,18
b) Aufwendungen für bezogene Leistungen	-21.119.249,66	-70.835.287,23	-15.531.009,84	-61.590.743,02
5. Personalaufwand
a) Löhne und Gehälter	-27.381.224,79		-25.628.317,79
b) Soziale Abgaben und Aufwendungen für Altersversorgung	-5.542.804,26	-32.924.029,05	-5.073.360,23	-30.701.678,02
- davon für Altersversorgung EUR 10.318,52 (i. Vj. EUR 11.077,76) -
6. Abschreibungen
a) auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen	-8.488.581,54		-8.639.344,56
b) auf Vermögensgegenstände des Umlaufvermögens, soweit diese die in der Kapitalgesellschaft üblichen Abschreibungen überschreiten	0,00	-8.488.581,54	-8.500.000,00	-17.139.344,56
7. Sonstige betriebliche Aufwendungen		-20.284.136,83		-19.013.797,51
8. Erträge aus Gewinnabführungsverträgen		1.234.617,34		1.911.143,89
9. Sonstige Zinsen und ähnliche Erträge		104.099,57		91.757,22
10. Abschreibungen auf Finanzanlagen und auf Wertpapiere des Umlaufvermögens		0,00		-26.492.439,93
11. Zinsen und ähnliche Aufwendungen		-270.493,07		-131.664,07
12. Steuern vom Einkommen und vom Ertrag		-6.888.798,96		-128.515,30
- davon Aufwendungen aus latenten Steuern EUR 5.203.849,02 (i. Vj. EUR 23.450,14) -
13. Ergebnis nach Steuern		-18.050.319,86		-35.379.721,11
14. Sonstige Steuern		-8.655,00		-8.480,00
15. Jahresfehlbetrag		-18.058.974,86		-35.388.201,11

Anhang für das Geschäftsjahr 2022

I. ALLGEMEINE ERLÄUTERUNGEN ZUM JAHRESABSCHLUSS

Die NIFCO Germany GmbH, Weißenburg, (im Folgenden kurz "Gesellschaft" genannt) hat ihren Sitz in Weißenburg und ist im Handelsregister des Amtsgerichts Ansbach, Abteilung B, unter Nummer 5941 seit dem 24. November 2014 eingetragen.

Der Jahresabschluss der NIFCO Germany GmbH, Weißenburg, für das Geschäftsjahr zum 31. Dezember 2022 wurde gemäß §§ 242 ff. und 264 ff. des HGB sowie nach den einschlägigen Vorschriften des GmbHG aufgestellt.

Angaben, die wahlweise in der Bilanz, in der Gewinn- und Verlustrechnung oder im Anhang gemacht werden können, sind vorzugsweise im Anhang aufgeführt.

Die Gewinn- und Verlustrechnung ist nach dem Gesamtkostenverfahren gemäß § 275 Abs. 2 HGB gegliedert.

Die Gesellschaft ist eine große Kapitalgesellschaft im Sinne des § 267 Abs. 3 HGB.

II. BILANZIERUNGS- UND BEWERTUNGSGRUNDSÄTZE

1. Anlagevermögen

Entgeltlich von Dritten erworbene immaterielle Vermögensgegenstände des Anlagevermögens wurden zu Anschaffungskosten angesetzt und, sofern sie der Abnutzung unterlagen, um planmäßige lineare Abschreibungen vermindert. Außerplanmäßige Abschreibungen werden vorgenommen, soweit der Ansatz mit einem niedrigeren beizulegenden Wert erforderlich ist.

Das Sachanlagevermögen wurde zu Anschaffungs- bzw. Herstellungskosten angesetzt und, soweit abnutzbar, um planmäßige Abschreibungen vermindert. Die planmäßigen Abschreibungen wurden nach der voraussichtlichen Nutzungsdauer der Vermögensgegenstände und in Anlehnung an die steuerlichen Vorschriften linear (pro rata temporis) vorgenommen. Außerplanmäßige Abschreibungen werden vorgenommen, soweit der Ansatz mit einem niedrigeren beizulegenden Wert erforderlich ist.

Die Finanzanlagen werden zu Anschaffungskosten bilanziert. Soweit erforderlich, wurde bei voraussichtlich dauernder Wertminderung der am Bilanzstichtag niedrigere beizulegende Wert angesetzt.

2. Vorräte

Die Bewertung der Roh-, Hilfs- und Betriebsstoffe und Waren erfolgt zu Anschaffungskosten inkl. Anschaffungsnebenkosten. Sofern der beizulegende Wert am Bilanzstichtag niedriger war, wurde dieser angesetzt.

Die Herstellungskosten der fertigen und unfertigen Erzeugnisse umfassen neben den direkt zurechenbaren Kosten auch angemessene Teile der Material- und Fertigungsgemeinkosten und des Werteverzehrs des Anlagevermögens, soweit dieser durch die Fertigung veranlasst ist. Dabei wird das strenge Niederstwertprinzip beachtet. Zinsen für Fremdkapital werden nicht in die Herstellungskosten einbezogen.

Die Position Werkzeuge enthält im Zusammenhang mit Projekten hergestellte bzw. erworbene Werkzeuge, die mit Serienstart an den Kunden veräußert werden. Die Bewertung erfolgt zu Anschaffungs- bzw. Herstellungskosten analog zu den Handelswaren bzw. fertigen Erzeugnissen.

Geleistete Anzahlungen werden zu Anschaffungskosten angesetzt.

3. Forderungen und sonstige Vermögensgegenstände

Forderungen und sonstige Vermögensgegenstände werden mit dem Nennbetrag oder mit dem am Bilanzstichtag niedrigeren beizulegenden Wert angesetzt. Bei Forderungen, deren Einbringlichkeit mit erkennbaren Risiken behaftet ist, werden angemessene Wertabschläge vorgenommen.

Dem allgemeinen Kreditrisiko ist durch eine pauschale Wertberichtigung in Höhe von 0,3 % auf die nicht einzelwertberichtigten Forderungen ausreichend Rechnung getragen.

4. Kassenbestand und Guthaben bei Kreditinstituten

Kassenbestand und Guthaben bei Kreditinstituten werden zum Nennwert angesetzt.

5. Rechnungsabgrenzungsposten

Als Rechnungsabgrenzungsposten sind auf der Aktivseite Ausgaben vor dem Abschlussstichtag ausgewiesen, soweit sie Aufwand für eine bestimmte Zeit danach darstellen.

6. Latente Steuern

7. Rückstellungen

Die sonstigen Rückstellungen werden in Höhe des notwendigen Erfüllungsbetrages angesetzt, der nach vernünftiger kaufmännischer Beurteilung notwendig ist, um alle zum Bilanzstichtag bereits erkennbaren Risiken und ungewisse Verbindlichkeiten abzudecken.

Die Rückstellungen für Dienstjubiläen werden mit dem ihrer Restlaufzeit entsprechenden, von der Deutschen Bundesbank ermittelten durchschnittlichen Marktzinssatz der vergangenen sieben Geschäftsjahre abgezinst.

Sofern Schätzverfahren bei der Ermittlung von Rückstellungen genutzt wurden, basieren diese auf Erfahrungswerten sowie Kostenschätzungen unter Berücksichtigung der verfügbaren Informationen.

8. Verbindlichkeiten

Verbindlichkeiten werden mit dem Erfüllungsbetrag angesetzt.

9. Verbundene Unternehmen

Als verbundene Unternehmen werden alle Gesellschaften angesehen, auf welche die NIFCO Inc., Tokio, Japan, unmittelbar oder mittelbar einen beherrschenden Einfluss ausüben kann.

10. Auf fremde Währung lautende Vermögensgegenstände und Verbindlichkeiten

Forderungen und Verbindlichkeiten in Fremdwährung werden mit dem Kurs am Tag des Geschäftsvorfalls bewertet.

Zum Bilanzstichtag werden kurzfristige Fremdwährungsforderungen und -verbindlichkeiten mit einer Restlaufzeit von weniger als einem Jahr gemäß § 256a HGB mit dem Devisenkassamittelkurs am Bilanzstichtag bewertet.

III. ERLÄUTERUNGEN ZU EINZELNEN BILANZPOSITIONEN

1. Immaterielle Vermögensgegenstände

Der Kundenstamm wurde in der Höhe prozentual abgeschrieben, die sich aus dem Verhältnis der budgetierten Umsatzerlöse pro Jahr zu den gesamten budgetierten Umsatzerlösen ergibt. Zum Stichtag ist der Kundenstamm planmäßig bereits vollständig abgeschrieben und daher nur zum Erinnerungswert von EUR 1,00 bilanziert.

2. Anlagevermögen

Zur Entwicklung des Anlagevermögens im Geschäftsjahr 2022 wird auf den separat dargestellten Anlagenspiegel verwiesen (siehe Anlage 1 zum Anhang).

3. Angaben über den Anteilsbesitz an anderen Unternehmen von mind. 20 % der Anteile

Gemäß § 285 Nr. 11 HGB wird über nachstehende Unternehmen berichtet:

Firmenname/Sitz	Anteilshöhe	Jahresergebnis	Gezeichnetes Kapital
SEGO GmbH, Solingen	100%	1.234.617,34 EUR (vor Ergebnisabführung)	26.000,00 EUR
NIFCO KTW America Corporation, Toccoa (USA)	90%	-21.432,862,56 USD	1.000,00 USD
NIFCO Germany d.o.o., Subotica (Serbien)	100%	-45.446.350,32 RSD	1.000,00 RSD

Mit Vertrag vom 12. Dezember 2013 wurde zwischen der NIFCO Germany GmbH als Organträgerin und der SEGO GmbH als Organgesellschaft ein Beherrschungs- und Gewinnabführungsvertrag geschlossen. Die Organgesellschaft ist verpflichtet, erstmals ab dem Beginn des im Zeitpunkt der Eintragung des Vertrages im Handelsregister laufenden Geschäftsjahres ihren Jahresüberschuss an die Organträgerin abzuführen. Die Organträgerin ist entsprechend zum Verlustausgleich der Organgesellschaft verpflichtet. Die Eintragung im Handelsregister erfolgte am 20. Januar 2014.

Der Beteiligungsbuchwert an NIFCO KTW America Corporation (Toccoa, USA) wurde zum 31. Dezember 2021 auf EUR 1 wertberichtigt. Grundlage hierfür ist ein durchgeführter Impairment Test (Wertminderungstest). Eine Zuschreibung war im Berichtsjahr nicht angezeigt.

Die Tochtergesellschaft NIFCO Germany d.o.o. wurde erst im Vorjahr gegründet, weshalb trotz der Anlaufverluste keine Abwertung auf den Beteiligungsbuchwert durchgeführt wurde.

4. Vorräte

In den Vorräten wurde eine separate Bilanzposition "Werkzeuge" in Höhe von TEUR 16.525 gebildet. In dieser Position sind für Kunden angeschaffte bzw. produzierte Werkzeuge enthalten, die im Vorjahr noch in den unfertigen Erzeugnissen (TEUR 4.590) sowie in den fertigen Erzeugnisse und Handelswaren (TEUR 9.181) bilanziert waren.

5. Forderungen und sonstige Vermögensgegenstände

Die Forderungen aus Lieferungen und Leistungen haben wie im Vorjahr ausnahmslos Restlaufzeiten von bis zu einem Jahr.

Die Forderungen gegen verbundene Unternehmen bestehen im Wesentlichen aus dem Liefer- und Leistungsverkehr mit der NIFCO KTW America Corporation (TEUR 368; i. Vj. TEUR 320) sowie der Forderung aus Ergebnisabführung gegen die SEGO GmbH (TEUR 4.258; i. Vj. TEUR 3.024).

Die Forderungen gegen die Gesellschafterin NIFCO Inc. betragen TEUR 4 (i. Vj. TEUR 97) und resultieren wie im Vorjahr ausschließlich aus dem Liefer- und Leistungsverkehr. Die übrigen Forderungen gegen verbundene Unternehmen resultieren ebenfalls wie im Vorjahr aus dem Liefer- und Leistungsverkehr. Die Forderungen gegen verbundene Unternehmen haben, wie im Vorjahr, Restlaufzeiten von weniger als einem Jahr.

Die sonstigen Vermögensgegenstände beinhalten im Wesentlichen Erstattungen für Ertragsteuern (TEUR 1.655), Kundenforderungen, Kautionen, Energiesteuer und Arbeitnehmerdarlehen. In Höhe von TEUR 315 (i. Vj. TEUR 315) haben die sonstigen Vermögensgegenstände Restlaufzeiten von mehr als einem Jahr.

6. Latente Steuern

Die latenten Steuern ergeben sich unter Anwendung eines Steuersatzes von 29,69 %.

Auf den Ausweis der aktiven latenten Steuern wurde gemäß § 274 Abs. 1 Satz 2 HGB verzichtet.

7. Sonstige Rückstellungen

Die ausgewiesenen sonstigen Rückstellungen in Höhe von TEUR 3.975 enthalten personalbezogene Rückstellungen (TEUR 1.627), Garantie- und Schadenersatzrückstellungen (TEUR 1.268), Drohverluste (TEUR 713), Rückstellungen für Jahresabschlusskosten (TEUR 210), Rückstellung für Aufbewahrungspflicht (TEUR 20) und Verschiedenes (TEUR 137).

8. Verbindlichkeiten gegenüber Gesellschafter

Die Verbindlichkeiten gegenüber dem Gesellschafter resultieren im Wesentlichen aus dem Liefer- und Leistungsverkehr.

Verbindlichkeiten

Die in der Bilanz ausgewiesenen Verbindlichkeiten haben folgende Laufzeiten:

	Gesamt EUR	Restlaufzeit < 1 Jahr EUR	Restlaufzeit 1-5 Jahre EUR	Restlaufzeit > 5 Jahre EUR	Art der Sicherheit
Verbindlichkeiten gegenüber Kreditinstituten	24.117.242,93	24.117.242,93	0,00	0,00	Bürgschaft Konzernmutter
	(VJ 22.425.670,93)	(VJ 22.308.428)	(VJ 117.242,93)	(VJ 0,00)
Erhaltene Anzahlungen	519.894,00	519.894,00	0,00	0,00
	(VJ 786.890,63)	(VJ 786.890,63)	(VJ 0,00)	(VJ 0,00)
Verbindlichkeiten aus Lieferungen und Leistungen	4.928.684,32	4.928.684,32	0,00	0,00
	(VJ 4.590.014,51)	(VJ 4.590.014,51)	(VJ 0,00)	(VJ 0,00)
Verbindlichkeiten ggü. Gesellschafter	71.670,29	71.670,29	0,00	0,00
	(VJ 114.832,49)	(VJ 114.832,49)	(VJ 0,00)	(VJ 0,00)
Verbindlichkeiten ggü. verbundenen Unternehmen	2.859.925,92	2.859.925,92	0,00	0,00
	(VJ 622.286,95)	(VJ 622.286,95)	(VJ 0,00)	(VJ 0,00)
Sonstige Verbindlichkeiten	1.731.574,94	1.731.574,94	0,00	0,00
	(VJ 2.053.638,03)	(VJ 2.053.638,03)	(VJ 0,00)	(VJ 0,00)
Summe	34.228.992,40	34.228.992,40	0,00	0,00
	(VJ 30.593.333,54)	(VJ 30.476.090,61)	(VJ 117.242,93)	(VJ 0,00)

Die Verbindlichkeiten gegenüber verbundenen Unternehmen resultieren, wie im Vorjahr, aus Lieferungen und Leistungen.

Die sonstigen Verbindlichkeiten beinhalten Verbindlichkeiten aus Steuern in Höhe von EUR 524.690,18 (VJ EUR 1.452.127,75) sowie Verbindlichkeiten aus der sozialen Sicherheit in Höhe von EUR 43.055,66 (VJ EUR 97.747,98).

Der Gesamtbetrag der Verbindlichkeiten, der durch eine Garantie der NIFCO Inc. gesichert ist, beträgt TEUR 24.000.

IV. ERLÄUTERUNGEN ZU EINZELNEN POSITIONEN DER GEWINN- UND VERLUSTRECHNUNG

Umsätze nach Marktsegmenten

Spritzguss- bzw. veredelte Kunststoffteile	92.106.069,76 €
Entwicklungsdienstleistung/Werkzeuggeschäft	19.628.228,26 €
Lohnveredelung	3.906.740,10 €
Sonstiger Umsatz	1.362.321,35 €
Erlösschmälerungen	-701.003,12 €
Umsätze	116.302.356,35 €

Umsätze nach Märkten

Europa	112.108.206,73 €
USA	3.531.390,59 €
Asien	423.338,90 €
Mexiko	940.423,25 €
Erlösschmälerungen	-701.003,12 €
Umsätze	116.302.356,35 €

Sonstige betriebliche Erträge

Die sonstigen betrieblichen Erträge enthalten Erträge aus der Währungsumrechnung in Höhe von EUR 69.987,24 (VJ EUR 44.386,26) sowie periodenfremde Erträge (im Wesentlichen aus Versicherungsentschädigungen) in Höhe von EUR 899.775,47 (VJ EUR 2.074.567,79).

Sonstige betriebliche Aufwendungen

Die sonstigen betrieblichen Aufwendungen enthalten Aufwendungen aus der Währungsumrechnung in Höhe von EUR 29.377,60 (VJ EUR 54.003,57).

Sonstige Zinsen und ähnliche Erträge

Zinsen aus verbundenen Unternehmen belaufen sich im Geschäftsjahr auf TEUR 94 (i. Vj. TEUR 66).

Zinsen und ähnliche Aufwendungen

Die Zinsaufwendungen resultieren mit TEUR 8 (i. Vj. TEUR 22) aus Zinsaufwendungen an verbundene Unternehmen.

V. SONSTIGE ANGABEN

1. Außerbilanzielle Geschäfte/Sonstige finanzielle Verpflichtungen

Der Nutzung eines Teils unserer Produktionsanlagen sowie von Grundstücken und Gebäuden liegen Operating-Leasingvereinbarungen zugrunde. Diese tragen zur Verringerung der Kapitalbindung bei und belassen das Investitionsrisiko beim Leasinggeber. Die Leasingvereinbarungen haben eine Restlaufzeit zwischen 1 und 8 Jahren und führten im Jahr 2022 zu einem Leasingaufwand in Höhe von TEUR 3.659 (VJ TEUR 3.896).

Grundstücke und Gebäude	3.228.124€
BGA	217.174€
Fahrzeuge	213.259€
Operating Leasing	3.658.557€

Wesentliche zukünftige finanzielle Verpflichtungen, die nicht in den Rückstellungen, Verbindlichkeiten oder Haftungsverhältnissen enthalten sind, bestehen für folgende Verpflichtungen aus Miet- und Leasingverträgen:

	2023 €	2024 €	2025 €	>2026 €	Gesamt €
Mieten für Grundstücke und Gebäude	3.458.786,40	2.756.791,38	2.601.501,60	12.017.991,36	20.835.070,74
Mieten, Leasing für Maschinen und Betriebsausstattung	4.800,00	4.000,00			8.800,00
PKW	183.700,97	134.199,59	54.172,37	10.157,92	382.230,85
Mieten, Leasing für Geschäftsausstattung	7.885,70	3.298,25	2.999,40	1.249,75	15.433,10
Gesamt	3.655.173,07	2.898.289,22	2.658.673,37	12.029.399,03	21.241.534,69

2. Haftungsverhältnisse

Zum Bilanzstichtag bestehen keine Haftungsverhältnisse, auch nicht gegenüber verbundenen oder assoziierten Unternehmen, über die gemäß § 251 HGB zu berichten wäre.

3. Geschäftsführung und Vertretungsbefugnis

Der Geschäftsführung gehörten im Berichtsjahr an:

―	Roland Furtmayr, Weißenburg, Deutschland, Kaufmann (bis 29. Juni 2022)
―	Karsten Schmidt, Oberneuching, Deutschland, Kaufmann
―	Mike Schmidt, Solingen, Deutschland, Kaufmann
―	Tony Schmidt, Solingen, Deutschland, Kaufmann
―	Masaharu Shibao, Tokio, Japan, Kaufmann
―	Takashi Koarashi, Suwanee GA, USA, Kaufmann (bis 29. Juni 2022)
―	Fukuo Iwasaki, Yokohama, Japan, Kaufmann (bis 10. Juli 2023)
―	Joan Oliveras, Beques, Spanien, Kaufmann (ab 29. Juni 2022)
―	Seiichiro Kashimori, Tokio, Japan, Kaufmann (29. Juni 2022 - 31. Januar 2023)
―	Ken Yokota, Nagoya, Japan, Kaufmann (ab 10. Juli 2023)
―	Tsutomo Mannari, Düsseldorf, Deutschland, Kaufmann (ab 10. Juli 2023)
―	Yoshihiro Matsuda, Tokio, Japan, Kaufmann (ab 10. Juli 2023)

Die Gesellschaft wird durch zwei o.g. Geschäftsführer oder durch einen Geschäftsführer gemeinsam mit einem Prokuristen vertreten.

Des Weiteren sind folgende Geschäftsführer bestellt, die einzelvertretungsberechtigt und von den Beschränkungen des § 181 BGB (Selbstkontrahierungsverbot) befreit sind:

―	Toshiyuki Yamamoto, Tokio, Japan, Kaufmann (bis 10. Juli 2023)
―	Masaya Nagaoka, Tokio, Japan, Kaufmann

Zu Prokuristen sind ernannt:

―	Thomas Werzinger, Weißenburg, Deutschland
―	Stefan Holz, Markt Berolzheim, Deutschland
―	Christine Kaufmann, Ellingen, Deutschland

Die Prokuristen vertreten die Gesellschaft gemeinsam mit einem Geschäftsführer.

4. Mitarbeiter im Durchschnitt des Geschäftsjahres

Im Geschäftsjahr waren durchschnittlich 523 gewerbliche Arbeitnehmer und 195 Angestellte beschäftigt.

5. Bezüge der Organe der Gesellschaft

Die Geschäftsführerbezüge werden im Hinblick auf § 286 Abs. 4 HGB nicht ausgewiesen, da nur zwei Geschäftsführer im Geschäftsjahr Bezüge von der Gesellschaft bezogen.

6. Honorar des Abschlussprüfers

Das Honorar des Abschlussprüfers für das Geschäftsjahr 2022 beträgt TEUR 277 und betrifft ausschließlich Abschlussprüfungsleistungen.

7. Konzernzugehörigkeit/Konzernabschluss

Die NIFCO Germany GmbH ist Tochter der NIFCO Inc., Tokio/Japan. Der Jahresabschluss der NIFCO Germany GmbH, Weißenburg, wird als verbundenes Unternehmen in den Konzernabschluss der NIFCO Inc., Tokio/Japan, als Mutterunternehmen mit dem kleinsten und größten Konsolidierungskreis einbezogen. Dieser Konzernabschluss ist am Sitz der Gesellschaft erhältlich.

Die Gesellschaft wird in den Konzernabschluss der NIFCO Inc., der nach Japanischen Financial Reporting Standards ("J-GAAP") aufgestellt wird, einbezogen und nimmt für das Jahr 2022 die Befreiung von der Aufstellung eines Konzernabschlusses und eines Konzernlageberichtes nach § 292 HGB in Anspruch. Dieser Konzernabschluss ist in den Geschäftsräumen der NIFCO Inc. einsehbar.

Der Konzernabschluss der NIFCO Inc. wird nach seiner Aufstellung in englischer Sprache im elektronischen Bundesanzeiger veröffentlicht werden.

Rechnungslegungsunterschiede zwischen HGB und J-GAAP im Konzernabschluss

Hier sind insbesondere die folgenden wesentlichen Rechnungslegungsunterschiede zu nennen:

Die Gliederung nach J-GAAP richtet sich bei den Vermögensgegenständen nach dem Grad der Liquidierbarkeit und bei den Schulden nach Restlaufzeit. Die Gliederung nach HGB ist im § 266 HGB definiert.

Bei der Kalkulation der Abschreibungen liegen zum Teil unterschiedliche Nutzungsdauern der jeweiligen Gegenstände des Anlagevermögens zugrunde.

Vorräte sind mit dem niedrigeren Wert aus Anschaffungs- oder Herstellungskosten und Wiederbeschaffungswert zu bewerten. Entsprechend J-GAAP können Vorräte entweder zu Anschaffungs- oder Herstellkosten oder mit dem niedrigeren Marktwert bewertet werden, es sei denn, der Marktwert ist erheblich niedriger als die Anschaffungs- und Herstellungskosten, wobei dann der niedrigere Marktwert anzusetzen ist.

Rückstellungen mit einer Restlaufzeit von mehr als einem Jahr sind gemäß § 253 Abs. 2 HGB auf den Barwert am Bilanzstichtag abzuzinsen. Rückstellungen für Instandhaltungen nach dem 1. Januar 2010 dürfen nur gebildet werden, wenn die Instandhaltungen im folgenden Geschäftsjahr innerhalb von 3 Monaten nachgeholt werden. Eine derartige Beschränkung der Rückstellungsbildung für Reparaturen und Instandhaltungen besteht nach J-GAAP nicht. Rückstellungen werden nach J-GAAP nicht diskontiert.

8. Ergebnisverwendung

Der Gesellschafterversammlung wird vorgeschlagen, den Jahresfehlbetrag in Höhe von EUR 18.058.974,86 auf neue Rechnung vorzutragen.

9. Nachtragsbericht

Vorgänge von besonderer Bedeutung nach dem Bilanzstichtag haben sich nicht ereignet.

Weißenburg, den 15.08.2023

Masaharu Shibao

Masaya Nagaoka

Ken Yokota

Tsutomu Mannari

Karsten Schmidt

Mike Schmidt

Tony Schmidt

Joan Oliveras

Yoshihiro Matsuda

Erläuterungen zur Bilanz zum 31. Dezember 2022

Entwicklung des Anlagevermögens

	Anschaffungs- und Herstellungskosten
	01. Jan. 2022 NIFCO Germany GmbH €	Zugänge NIFCO Germany GmbH €	Umbuchungen NIFCO Germany GmbH €	Abgänge NIFCO Germany GmbH €	31. Dez. 2022 NIFCO Germany GmbH €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte sowie Lizenzen an solchen Rechten und Werten	1.274.985,77	157.904,01	0,00	0,00	1.432.889,78
2. Kundenstamm	19.913.662,65	0,00	0,00	0,00	19.913.662,65
3. Geschäfts- oder Firmenwert	38.447.565,42	0,00	0,00	0,00	38.447.565,42
	59.636.213,84	157.904,01	0,00	0,00	59.794.117,85
II. SACHANLAGEN
1. Grundstücke, grundstücksgleiche Rechte und Bauten einschließlich der Bauten auf fremden Grundstücken	5.293.988,30	965.384,20	0,00	0,00	6.259.372,50
2. Technische Anlagen und Maschinen	36.357.646,09	4.134.784,31	0,00	3.891,44	40.488.538,96
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	10.592.262,67	984.468,32	0,00	2.350,00	11.574.380,99
4. Geleistete Anzahlungen und Anlagen im Bau	51.728,97	0,00	0,00	0,00	51.728,97
	52.295.626,03	6.084.636,83	0,00	6.241,44	58.374.021,42
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	44.514.919,25	350.000,00	0,00	0,00	44.864.919,25
	156.446.759,12	6.592.540,84	0,00	6.241,44	163.033.058,52

	Kumulierte Abschreibungen
	01. Jan. 2022 NIFCO Germany GmbH €	Zuführungen NIFCO Germany GmbH €	Umbuchungen NIFCO Germany GmbH €	Abgänge NIFCO Germany GmbH €	31. Dez. 2022 NIFCO Germany GmbH €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte sowie Lizenzen an solchen Rechten und Werten	1.061.195,76	137.479,01	0,00	0,00	1.198.674,77
2. Kundenstamm	19.913.661,64	0,01	0,00	0,00	19.913.661,65
3. Geschäfts- oder Firmenwert	29.327.423,42	3.040.047,00	0,00	0,00	32.367.470,42
	50.302.280,82	3.177.526,02	0,00	0,00	53.479.806,84
II. SACHANLAGEN
1. Grundstücke, grundstücksgleiche Rechte und Bauten einschließlich der Bauten auf fremden Grundstücken	2.425.388,80	506.723,80	0,00	0,00	2.932.112,60
2. Technische Anlagen und Maschinen	24.001.543,88	3.799.915,40	0,00	3.890,44	27.797.568,84
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	7.023.661,14	1.004.416,32	0,00	2.349,00	8.025.728,46
4. Geleistete Anzahlungen und Anlagen im Bau	0,00	0,00	0,00	0,00	0,00
	33.450.593,82	5.311.055,52	0,00	6.239,44	38.755.409,90
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	35.587.915,93	0,00	0,00	0,00	35.587.915,93
	119.340.790,57	8.488.581,54	0,00	6.239,44	127.823.132,67

	Buchwert
	31. Dez. 2022 NIFCO Germany GmbH €	31. Dez. 2021 NIFCO KTW GmbH €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte sowie Lizenzen an solchen Rechten und Werten	234.215,01	213.790,01
2. Kundenstamm	1,00	1,01
3. Geschäfts- oder Firmenwert	6.080.095,00	9.120.142,00
	6.314.311,01	9.333.933,02
II. SACHANLAGEN
1. Grundstücke, grundstücksgleiche Rechte und Bauten einschließlich der Bauten auf fremden Grundstücken	3.327.259,90	2.868.599,50
2. Technische Anlagen und Maschinen	12.690.970,12	12.356.102,21
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	3.548.652,53	3.568.601,53
4. Geleistete Anzahlungen und Anlagen im Bau	51.728,97	51.728,97
	19.618.611,52	18.845.032,21
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	9.277.003,32	8.927.003,32
	35.209.925,85	37.105.968,55

Bericht zur Gleichstellung und zur Entgeltgleichheit

Veröffentlichung als Anlage zum Jahresabschluss 2022

Für die Nifco Germany GmbH sind Vielfalt und Chancengleichheit zentrale Elemente ihrer strategischen Ausrichtung.

Sie sind unverzichtbar, um das Unternehmen nach innen und nach außen als attraktiven Arbeitgeber zu positionieren - heute und zukünftig.

Das gesellschaftliche Rollenverständnis und die Einstellungen von Frauen und Männern haben sich deutlich gewandelt. Zudem hat der Gleichbehandlungsanspruch seinen Niederschlag in der nationalen und internationalen Gesetzgebung gefunden.

Sich verändernde Bedürfnisse in den verschiedenen Lebensphasen der Mitarbeitenden und unterschiedliche Familien- sowie Beschäftigungsmodelle fordern auch von der Nifco Germany GmbH Maßnahmen, um als verantwortungsvoll agierender Arbeitgeber den vielfältigen, individuellen Situationen gerecht zu werden.

Dabei sind die Sicherstellung und Weiterentwicklung der Chancengleichheit von Frauen und Männern für die Nifco Germany GmbH selbstverständlich - sowohl im Denken als auch Handeln nach innen und nach außen.

Diese Chancengleichheit am Arbeitsplatz durchzusetzen ist Aufgabe der praktizierten Personalpolitik, der Führungskräfte, Arbeitnehmervertretungen sowie der einzelnen Mitarbeitenden.

Im Themenbereich "Gleichstellung von Männern und Frauen" sind die Erhöhung des Frauenanteils im Management und die Verbesserung der Vereinbarkeit von Beruf und Familie für die Nifco Germany GmbH zentrale Themenbereiche.

Die Nifco Germany GmbH fördert die Entgeltgleichheit von Männern und Frauen und verfolgt dieses Ziel nicht zuletzt auch als Unternehmen mit einer Anlehnung an geltende Tarifverträge.

Maßnahmen zur Förderung der Gleichstellung von Frauen und Männern

Fokus: Erhöhung der Frauenquote im Management

Für den Unternehmenserfolg der Nifco Germany GmbH sind die Fähigkeiten, Perspektiven und Erfahrungen der Mitarbeitenden von hoher Relevanz. Am leistungsstärksten und innovativsten ist eine Belegschaft, die divers aufgestellt ist und mit dieser Diversität kompetent und konstruktiv umzugehen weiß.

Zum Ausbau einer vielfalt-fördernden Kultur werden konkrete Maßnahmen ergriffen. Bei Einstellungen für Leitungsfunktionen, werden bei gleicher Eignung Frauen bevorzugt behandelt.

Hierbei wird sichergestellt, dass die Entgelte zwischen Männern und Frauen keine Unterschiede aufweisen. Diese richten sich ausschließlich an Position und Erfahrung. Ziel dieser Maßnahme ist es, die Frauenquote im Unternehmen, speziell in Leitungsfunktionen, nachhaltig zu erhöhen.

Fokus: Vereinbarkeit von Beruf und Familie

Um die beruflichen und privaten Anforderungen der Beschäftigten besser in Einklang zu bringen, unterstützt die die Nifco Germany GmbH ihre Beschäftigten in Deutschland durch flexible Arbeitszeitmodelle, wie beispielsweise Gleitzeit oder Homeoffice.

Für besondere Lebenslagen gewähren wir Sonderurlaub und nehmen insbesondere darauf Rücksicht, sollten Mitarbeitende sich um kranke Kinder oder Angehörige kümmern müssen.

Das Thema Angehörigenpflege gewinnt aufgrund der alternden Bevölkerungsstruktur kontinuierlich an Bedeutung. Die Nifco Germany GmbH stellt sich dieser Herausforderung mit umfassenden Informationen für betroffene Mitarbeitende.

Maßnahmen zur Herstellung von Entgeltgleichheit für Frauen und Männer

Die Nifco Germany GmbH ist nicht tarifgebunden, lehnt sich aber an bestehende Tarifverträge an

Ziel der Nifco Germany GmbH ist es, mit ihrer Arbeitnehmervertretung langfristige und wirtschaftlich tragfähige Vereinbarungen zu schließen. Dies ermöglicht nachhaltigen Erfolg sowie Planbarkeit und Sicherheit sowohl für das Unternehmen wie auch für seine Beschäftigten. Dabei spielt Flexibilisierung von Arbeitszeit und -ort für Unternehmen und Mitarbeitende eine zunehmend wichtigere Rolle.

Für Mitarbeitende, die nach Entgeltgrundordnung vergütet werden, definiert die Betriebsvereinbarung zur Entgeltgrundordnung geschlechtsunabhängige Kriterien zur Stellenbewertung sowie die dazugehörige Vergütung, so dass Entgeltgleichheit für Männer und Frauen bereits im betrieblichen Entgeltsystem sichergestellt ist.

Entlohnungen für Auszubildende und duale Studenten sind ebenfalls geschlechtsunabhängig und richten sich ausschließlich nach der Erfahrung bzw. dem Ausbildungsjahr.

Vergütung und Vergütungsentwicklung für Angestellte, die nicht der Entgeltgrundordnung zugeordnet sind, finden ebenfalls in Anlehnung an geltende Tarifverträge der IG BCE statt und sind vollkommen geschlechtsunabhängig.

Die Einstiegslöhne für kaufmännische Auszubildende nach der Ausbildung wird immer analog den gültigen Tarifbestimmungen für diese Mitarbeitergruppe festgelegt. Dies erfolgt ebenfalls geschlechtsunabhängig.

Gehalts- und Bonuszahlungen für leitende Angestellte unterliegen den Richtlinien der Nifco Inc. in Japan. Sämtliche Regelungen zur Gehalts- und Bonuszahlung sind hierbei geschlechtsneutral und für alle betroffenen Arbeitnehmerinnen und Arbeitnehmer gleich. Sämtliche Bewertungsmaßstäbe werden ebenfalls für alle Geschlechter gleichermaßen zum Einsatz gebracht.

Beschäftigte der Nifco Germany GmbH in Deutschland 2022

	2022 - Gesamt	2022 - Männer	2022 - Frauen
Gesamt	735	475	260
Vollzeit	702	469	233
Teilzeit	33	6	27

ÜBER DIESEN BERICHT

Nach dem Entgelttransparenzgesetz sind Arbeitgeber zur Erstellung eines Berichts zur Gleichstellung und zur Entgeltgleichheit verpflichtet, wenn sie in der Regel mehr als 500 Beschäftigte beschäftigen und lageberichtspflichtig nach dem Handelsgesetzbuch sind. Der vorliegende "Bericht zur Gleichstellung und Entgeltgleichheit" wurde gem. §§ 21, 22 EntgTranspG für die Nifco Germany GmbH erstellt und auf dieser Seite als Anlage zum Jahresabschluss 2022 veröffentlicht. Neben einem statistischen Teil enthält er Informationen über Maßnahmen zur Förderung der Gleichstellung von Frauen und Männern und deren Wirkung sowie zur Herstellung von Entgeltgleichheit für Frauen und Männer. Der nächste Bericht wird 2025 veröffentlicht.

Bestätigungsvermerk des unabhängigen Abschlussprüfers

An die NIFCO Germany GmbH, Weißenburg

Prüfungsurteile

Wir haben den Jahresabschluss der NIFCO Germany GmbH, Weißenburg, - bestehend aus der Bilanz zum 31. Dezember 2022 und der Gewinn- und Verlustrechnung für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2022 sowie dem Anhang, einschließlich der Darstellung der Bilanzierungs- und Bewertungsmethoden - geprüft. Darüber hinaus haben wir den Lagebericht der NIFCO Germany GmbH für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2022 geprüft.

Die in der Anlage zum Bestätigungsvermerk genannten Bestandteile des Lageberichts haben wir in Einklang mit den deutschen gesetzlichen Vorschriften nicht inhaltlich geprüft.

Der Lagebericht enthält nicht vom Gesetz vorgesehene Querverweise. Diese in der Anlage zum Bestätigungsvermerk genannten Querverweise sowie die Informationen, auf die sich die Querverweise beziehen, haben wir in Einklang mit den deutschen gesetzlichen Vorschriften nicht inhaltlich geprüft.

Nach unserer Beurteilung aufgrund der bei der Prüfung gewonnenen Erkenntnisse

―

entspricht der beigefügte Jahresabschluss in allen wesentlichen Belangen den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften und vermittelt unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens- und Finanzlage der Gesellschaft zum 31. Dezember 2022 sowie ihrer Ertragslage für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2022 und

―

vermittelt der beigefügte Lagebericht insgesamt ein zutreffendes Bild von der Lage der Gesellschaft. In allen wesentlichen Belangen steht dieser Lagebericht in Einklang mit dem Jahresabschluss, entspricht den deutschen gesetzlichen Vorschriften und stellt die Chancen und Risiken der zukünftigen Entwicklung zutreffend dar. Unser Prüfungsurteil zum Lagebericht erstreckt sich nicht auf den Inhalt der in der Anlage zum Bestätigungsvermerk genannten Bestandteile des Lageberichts. Der Lagebericht enthält nicht vom Gesetz vorgesehene Querverweise. Unser Prüfungsurteil erstreckt sich nicht auf die in der Anlage zum Bestätigungsvermerk genannten Querverweise sowie die Informationen, auf die sich die Querverweise beziehen.

Gemäß § 322 Abs. 3 Satz 1 HGB erklären wir, dass unsere Prüfung zu keinen Einwendungen gegen die Ordnungsmäßigkeit des Jahresabschlusses und des Lageberichts geführt hat.

Grundlage für die Prüfungsurteile

Wir haben unsere Prüfung des Jahresabschlusses und des Lageberichts in Übereinstimmung mit § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung durchgeführt. Unsere Verantwortung nach diesen Vorschriften und Grundsätzen ist im Abschnitt "Verantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts" unseres Bestätigungsvermerks weitergehend beschrieben. Wir sind von dem Unternehmen unabhängig in Übereinstimmung mit den deutschen handelsrechtlichen und berufsrechtlichen Vorschriften und haben unsere sonstigen deutschen Berufspflichten in Übereinstimmung mit diesen Anforderungen erfüllt. Wir sind der Auffassung, dass die von uns erlangten Prüfungsnachweise ausreichend und geeignet sind, um als Grundlage für unsere Prüfungsurteile zum Jahresabschluss und zum Lagebericht zu dienen.

Sonstige Informationen

Die gesetzlichen Vertreter sind für die sonstigen Informationen verantwortlich. Die sonstigen Informationen umfassen die Erklärung zur Unternehmensführung nach § 289f Abs. 4 HGB (Angaben zur Frauenquote), die in Abschnitt IV. des Lageberichts enthalten ist.

Unsere Prüfungsurteile zum Jahresabschluss und zum Lagebericht erstrecken sich nicht auf die sonstigen Informationen, und dementsprechend geben wir weder ein Prüfungsurteil noch irgendeine andere Form von Prüfungsschlussfolgerung hierzu ab.

Im Zusammenhang mit unserer Prüfung haben wir die Verantwortung, die oben genannten sonstigen Informationen zu lesen und dabei zu würdigen, ob die sonstigen Informationen

―	wesentliche Unstimmigkeiten zum Jahresabschluss, zu den inhaltlich geprüften Lageberichtsangaben oder unseren bei der Prüfung erlangten Kenntnissen aufweisen oder
―	anderweitig wesentlich falsch dargestellt erscheinen.

Verantwortung der gesetzlichen Vertreter für den Jahresabschluss und den Lagebericht

Die gesetzlichen Vertreter sind verantwortlich für die Aufstellung des Jahresabschlusses, der den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften in allen wesentlichen Belangen entspricht, und dafür, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt. Ferner sind die gesetzlichen Vertreter verantwortlich für die internen Kontrollen, die sie in Übereinstimmung mit den deutschen Grundsätzen ordnungsmäßiger Buchführung als notwendig bestimmt haben, um die Aufstellung eines Jahresabschlusses zu ermöglichen, der frei von wesentlichen falschen Darstellungen aufgrund von dolosen Handlungen (d. h. Manipulationen der Rechnungslegung und Vermögensschädigungen) oder Irrtümern ist.

Bei der Aufstellung des Jahresabschlusses sind die gesetzlichen Vertreter dafür verantwortlich, die Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit zu beurteilen. Des Weiteren haben sie die Verantwortung, Sachverhalte in Zusammenhang mit der Fortführung der Unternehmenstätigkeit, sofern einschlägig, anzugeben. Darüber hinaus sind sie dafür verantwortlich, auf der Grundlage des Rechnungslegungsgrundsatzes der Fortführung der Unternehmenstätigkeit zu bilanzieren, sofern dem nicht tatsächliche oder rechtliche Gegebenheiten entgegenstehen.

Außerdem sind die gesetzlichen Vertreter verantwortlich für die Aufstellung des Lageberichts, der insgesamt ein zutreffendes Bild von der Lage der Gesellschaft vermittelt sowie in allen wesentlichen Belangen mit dem Jahresabschluss in Einklang steht, den deutschen gesetzlichen Vorschriften entspricht und die Chancen und Risiken der zukünftigen Entwicklung zutreffend darstellt. Ferner sind die gesetzlichen Vertreter verantwortlich für die Vorkehrungen und Maßnahmen (Systeme), die sie als notwendig erachtet haben, um die Aufstellung eines Lageberichts in Übereinstimmung mit den anzuwendenden deutschen gesetzlichen Vorschriften zu ermöglichen und um ausreichende geeignete Nachweise für die Aussagen im Lagebericht erbringen zu können.

Verantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts

Unsere Zielsetzung ist, hinreichende Sicherheit darüber zu erlangen, ob der Jahresabschluss als Ganzes frei von wesentlichen falschen Darstellungen aufgrund von dolosen Handlungen oder Irrtümern ist, und ob der Lagebericht insgesamt ein zutreffendes Bild von der Lage der Gesellschaft vermittelt sowie in allen wesentlichen Belangen mit dem Jahresabschluss sowie mit den bei der Prüfung gewonnenen Erkenntnissen in Einklang steht, den deutschen gesetzlichen Vorschriften entspricht und die Chancen und Risiken der zukünftigen Entwicklung zutreffend darstellt, sowie einen Bestätigungsvermerk zu erteilen, der unsere Prüfungsurteile zum Jahresabschluss und zum Lagebericht beinhaltet.

Hinreichende Sicherheit ist ein hohes Maß an Sicherheit, aber keine Garantie dafür, dass eine in Übereinstimmung mit § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung durchgeführte Prüfung eine wesentliche falsche Darstellung stets aufdeckt. Falsche Darstellungen können aus dolosen Handlungen oder Irrtümern resultieren und werden als wesentlich angesehen, wenn vernünftigerweise erwartet werden könnte, dass sie einzeln oder insgesamt die auf der Grundlage dieses Jahresabschlusses und Lageberichts getroffenen wirtschaftlichen Entscheidungen von Adressaten beeinflussen.

Während der Prüfung üben wir pflichtgemäßes Ermessen aus und bewahren eine kritische Grundhaltung. Darüber hinaus

―	identifizieren und beurteilen wir die Risiken wesentlicher falscher Darstellungen im Jahresabschluss und im Lagebericht aufgrund von dolosen Handlungen oder Irrtümern, planen und führen Prüfungshandlungen als Reaktion auf diese Risiken durch sowie erlangen Prüfungsnachweise, die ausreichend und geeignet sind, um als Grundlage für unsere Prüfungsurteile zu dienen. Das Risiko, dass aus dolosen Handlungen resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden, ist höher als das Risiko, dass aus Irrtümern resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden, da dolose Handlungen kollusives Zusammenwirken, Fälschungen, beabsichtigte Unvollständigkeiten, irreführende Darstellungen bzw. das Außerkraftsetzen interner Kontrollen beinhalten können.
―	gewinnen wir ein Verständnis von dem für die Prüfung des Jahresabschlusses relevanten internen Kontrollsystem und den für die Prüfung des Lageberichts relevanten Vorkehrungen und Maßnahmen, um Prüfungshandlungen zu planen, die unter den gegebenen Umständen angemessen sind, jedoch nicht mit dem Ziel, ein Prüfungsurteil zur Wirksamkeit dieser Systeme der Gesellschaft abzugeben.
―	beurteilen wir die Angemessenheit der von den gesetzlichen Vertretern angewandten Rechnungslegungsmethoden sowie die Vertretbarkeit der von den gesetzlichen Vertretern dargestellten geschätzten Werte und damit zusammenhängenden Angaben.
―	ziehen wir Schlussfolgerungen über die Angemessenheit des von den gesetzlichen Vertretern angewandten Rechnungslegungsgrundsatzes der Fortführung der Unternehmenstätigkeit sowie, auf der Grundlage der erlangten Prüfungsnachweise, ob eine wesentliche Unsicherheit im Zusammenhang mit Ereignissen oder Gegebenheiten besteht, die bedeutsame Zweifel an der Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit aufwerfen können. Falls wir zu dem Schluss kommen, dass eine wesentliche Unsicherheit besteht, sind wir verpflichtet, im Bestätigungsvermerk auf die dazugehörigen Angaben im Jahresabschluss und im Lagebericht aufmerksam zu machen oder, falls diese Angaben unangemessen sind, unser jeweiliges Prüfungsurteil zu modifizieren. Wir ziehen unsere Schlussfolgerungen auf der Grundlage der bis zum Datum unseres Bestätigungsvermerks erlangten Prüfungsnachweise. Zukünftige Ereignisse oder Gegebenheiten können jedoch dazu führen, dass die Gesellschaft ihre Unternehmenstätigkeit nicht mehr fortführen kann.
―	beurteilen wir Darstellung, Aufbau und Inhalt des Jahresabschlusses insgesamt einschließlich der Angaben sowie ob der Jahresabschluss die zugrunde liegenden Geschäftsvorfälle und Ereignisse so darstellt, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt.
―	beurteilen wir den Einklang des Lageberichts mit dem Jahresabschluss, seine Gesetzesentsprechung und das von ihm vermittelte Bild von der Lage des Unternehmens.
―	führen wir Prüfungshandlungen zu den von den gesetzlichen Vertretern dargestellten zukunftsorientierten Angaben im Lagebericht durch. Auf Basis ausreichender geeigneter Prüfungsnachweise vollziehen wir dabei insbesondere die den zukunftsorientierten Angaben von den gesetzlichen Vertretern zugrunde gelegten bedeutsamen Annahmen nach und beurteilen die sachgerechte Ableitung der zukunftsorientierten Angaben aus diesen Annahmen. Ein eigenständiges Prüfungsurteil zu den zukunftsorientierten Angaben sowie zu den zugrunde liegenden Annahmen geben wir nicht ab. Es besteht ein erhebliches unvermeidbares Risiko, dass künftige Ereignisse wesentlich von den zukunftsorientierten Angaben abweichen.

Wir erörtern mit den für die Überwachung Verantwortlichen unter anderem den geplanten Umfang und die Zeitplanung der Prüfung sowie bedeutsame Prüfungsfeststellungen, einschließlich etwaiger bedeutsamer Mängel im internen Kontrollsystem, die wir während unserer Prüfung feststellen.

Nürnberg, den 31. August 2023

KPMG AG
Wirtschaftsprüfungsgesellschaft

Sperling, Wirtschaftsprüfer

Eberle, Wirtschaftsprüfer

Feststellung des Jahresabschlusses

Der Jahresabschluss zum 31. Dezember 2022 wurde am 31. August 2023 festgestellt.

30:T1fbef,

NIFCO Germany GmbH

Weißenburg

Jahresabschluss zum Geschäftsjahr vom 01.01.2021 bis zum 31.12.2021

Lagebericht für das Geschäftsjahr 2021

I. Grundlagen des Unternehmens

Geschäftsmodell des Unternehmens

Durch unsere Tochtergesellschaft NIFCO KTW America Corporation, Toccoa, Georgia/USA, können wir auch den US-amerikanischen Markt beliefern.

Steuerungssystem

Darüber hinaus haben wir keinen weiteren wesentlichen finanziellen und nichtfinanziellen Leistungsindikator identifiziert.

Forschung und Entwicklung

II. Wirtschaftsbericht

Entwicklung von Branche und Gesamtwirtschaft

Der Chipmangel und Lieferengpässe haben der deutschen Automobilindustrie im Jahr 2021 zugesetzt. Die deutschen Pkw-Exporte sind im Jahr 2021 gegenüber dem Vorjahr zwar gestiegen, allerdings erreichten sie nicht das Vorkrisenniveau des Jahres 2019. Wichtigster Abnehmerstaat der deutschen Autobranche war im Jahr 2021 die Volksrepublik China.

Der Mangel an Bauteilen betraf Autohersteller weltweit und dämpfte auch die Auto-Importe. Sie verringerten sich im Jahr 2021 um -2,4 % gegenüber dem Vorjahr und lagen mit 56,4 Milliarden Euro ebenfalls unter dem Vorkrisenniveau.

Trotz der Zuwächse bei Elektrofahrzeugen machten Autos mit Verbrennungsmotor auch im Jahr 2021 den Großteil der deutschen Pkw-Exporte und -Importe aus, die Tendenz war jedoch stark rückläufig. In den drei wichtigsten Hubraumklassen für Pkw mit Verbrennungsmotoren wurden im Jahr 2021 zusammen 1,5 Millionen Autos im Wert von 48,7 Milliarden Euro exportiert. Damit sanken die Exporte gegenüber dem Jahr 2020 wertmäßig um 18,9 %. Importiert wurden in den drei Segmenten 1,2 Millionen Autos im Wert von 24,2 Milliarden Euro (-23,0 %).

Die Automobilindustrie ist gemessen am Umsatz die größte Branche des Verarbeitenden Gewerbes. Die 60 Betriebe im Bereich der Herstellung von Personenkraftwagen und Personenkraftwagenmotoren erwirtschafteten im Jahr 2021 einen Umsatz von 295,6 Milliarden Euro. Das sind 16,1 % des gesamten Industrieumsatzes. Im Vergleich zum Vorjahr (274,4 Milliarden Euro) war das ein Anstieg um 7,7 %. Allerdings lag der Umsatz um 6,9 % unter dem Vorkrisenniveau aus dem Jahr 2019. Damals hatte er 317,5 Milliarden Euro betragen. (Quelle: Statistisches Bundesamt)

Die Zahl der Beschäftigten in der deutschen Automobilindustrie lag zuletzt bei rd. 786.100. Diese Zahl entspricht einer Abnahme von rund 22.900 Arbeitsplätzen im Vergleich zum Vorjahr. Der Jahresumsatz der deutschen Automobilindustrie betrug 2021 rund 411 Milliarden Euro. (Quelle: Statista)

Nach Angabe des Statistischen Bundesamtes ist die Deutsche Wirtschaft in 2021 gestiegen. Das preisbereinigte Bruttoinlandsprodukt (BIP) war um 2,7% höher als in 2020.

Im Vergleich zum vorangegangenen Krisenjahr 2020, in dem die Produktion im Zuge der Corona-Pandemie teilweise massiv eingeschränkt worden war, hat sich die Wirtschaftsleistung im Jahr 2021 in fast allen Wirtschaftsbereichen erhöht.

Die preisbereinigte Bruttowertschöpfung stieg im Verarbeitenden Gewerbe deutlich um 4,4% gegenüber dem Vorjahr.

Trotz der Zuwächse im Jahr 2021 hat die Wirtschaftsleistung in den meisten Wirtschaftsbereichen noch nicht wieder das Vorkrisenniveau erreicht. So lag die Wirtschaftsleistung im Verarbeitenden Gewerbe 2021 noch 6,0% unter dem Niveau von 2019.

Die privaten Konsumausgaben waren um 3,4% höher als in 2020.

Die sonstigen Anlagen, zu denen unter anderem die Investitionen in Forschung und Entwicklung gehören, lagen nach ersten Schätzungen mit 0,7% etwas unter dem Vorjahresniveau.

Die Wirtschaftsleistung in Deutschland wurde im Jahresdurchschnitt 2021 von 44,9 Millionen Erwerbstätigen mit Arbeitsort Deutschland erbracht. Das waren etwa genauso viele Erwerbstätige wie im Vorjahr.

NIFCO Germany konnte im abgelaufenen Geschäftsjahr 2021 seine Stellung im Markt als einer der TOP Lieferanten im Kinematikbereich fortführen. Referenzkunden wie BMW, Daimler, Volkswagen, AUDI, Porsche sowie VOLVO sprechen für sich.

Geschäftsverlauf der Gesellschaft

Allgemeines

Die Gesellschaft blickt auf ein durchwachsenes Geschäftsjahr 2021 zurück, welches deutlich durch die Halbleiter-Krise sowie Corona-Situation geprägt war.

Die erzielten Umsätze der Gesellschaft übertrafen deutlich das Vorjahresniveau, lagen aber etwas unter den Planungen bzw. der Prognose aus dem Vorjahr.

Die Gesellschaft wurde auch im Jahr 2021 erfolgreich zertifiziert.

Standort Weißenburg: IATF 16949, ISO 14001 und ISO 50001

Weiterhin wurde die Firma in Zusammenhang mit spezifischen Produktgruppen bezüglich CCC zertifiziert.

Standort Solingen: IATF 16949, ISO 14001

Unsere Tochtergesellschaft NIFCO KTW America Corporation konnte aufgrund der angespannten wirtschaftlichen Lage in den USA - bedingt durch die Corona Pandemie - kein positives Ergebnis erwirtschaften.

Ertragslage

	2021 (in Euro)	2020 (in Euro)
Umsatzerlöse	117.966.411,75	110.738.678,12
Rohergebnis	56.224.817,17	50.210.050,54
Personalaufwand	30.701.678,02	29.836.300,25
EBITDA	8.420.485,53	3.995.697,46
Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen	8.639.344,56	8.384.051,62
Abschreibungen auf Vermögensgegenstände des Umlaufvermögens, soweit diese die in der Kapitalgesellschaft üblichen Abschreibungen überschreiten	8.500.000,00	0,00
Abschreibungen auf Finanzanlagen und auf Wertpapiere des Umlaufvermögens	26.492.439,93	0,00
EBIT	-35.211.298,96	-4.388.354,16

Umsatzentwicklung

Die Umsatzerlöse betrugen im laufenden Geschäftsjahr 117,97 Mio. € und sind im Vergleich zum Vorjahr (110,74 Mio. €) um 6,353 gestiegen. Grund für den leichten Anstieg sind im Wesentlichen die Anpassungen der Kundenabrufe.

Der Materialaufwand in Höhe von 61,59 Mio. € ist gegenüber dem Vorjahr (73,45 Mio. €) prozentual zur Gesamtleistung (Umsatz +/- Bestandsveränderung) deutlich gesunken. Dies ist hauptsächlich auf die Veränderung im Bereich der Werkzeugbestände zurückzuführen.

Die Aufgliederung der Umsätze nach Regionen / Segmenten ist im Anhang ersichtlich.

Geschäftsergebnis

Das Rohergebnis von 56,22 Mio. € ist im Vergleich zum Vorjahr (50,21 Mio. €) deutlich gestiegen und spiegelt den Umsatzaufbau entsprechend wider. Das EBIT (Ergebnis vor Zinsen und Steuern) als weiterer wesentlicher finanzieller Leistungsindikator beläuft sich im Geschäftsjahr auf -35,21 Mio. € nach -4,39 Mio. € im Vorjahr und ist in 2021 demnach deutlich gesunken, was im Wesentlichen auf die außerplanmäßigen Abschreibungen auf Finanzanlagen sowie auf Wertberichtigungen auf Forderungen gegen verbundene Unternehmen zurückzuführen ist.

Die Entwicklung des EBIT im Geschäftsjahr entsprach somit nicht den Erwartungen.

Die Personalkosten sind im Laufe des Jahres 2021 um T€ 955 bzw. 3,87% gestiegen Dies resultiert im Wesentlichen aus einer Reduzierung der Beschäftigtenzahl aufgrund optimierter Prozesse.

Im Jahresdurchschnitt wurden 723 (Vj. 750) aktive Mitarbeiter beschäftigt.

Die sonstigen betrieblichen Aufwendungen belaufen sich auf T€ 19.014 (Vj. T€ 17.491) und beinhalten im Wesentlichen Raumkosten (T€ 6.778), Kosten der Warenabgabe (T€ 2.740), Vertriebskosten (T€ 2.445), laufende Instandhaltung (T€ 1.628), Versicherungen und Beiträge (T€ 564) sowie sonstige Verwaltungsaufwendungen.

Das Ergebnis (Jahresfehlbetrag) des Geschäftsjahres 2021 verfehlte die Erwartungen und betrug 35,39 Mio. € (Vj. 2,03 Mio. € Jahresfehlbetrag).

Die Abschreibungen auf Vermögensgegenstände des Umlaufvermögens i.H.v. T€ 8.500 (Vj. T€ 0) betreffen ein gewährtes Darlehen gegenüber unserer Tochtergesellschaft NIFCO KTW America Corporation. Aufgrund der derzeitigen geschäftlichen Lage und der Prognosen für kommende Jahre, ist nicht mit einer Rückzahlung zu rechnen.

Weiterhin wurde der Beteiligungsbuchwert an unserer Tochtergesellschaft NIFCO KTW America Corporation von T€ 26.492 auf T€ 0 Euro abgeschrieben. Die Abschreibung ist im Wesentlichen der Tatsache geschuldet, dass zum Ende des Geschäftsjahres 2021 die NIFCO KTW America Corporation kein positives Eigenkapital vorweisen kann und die Ertragsaussichten in der Zukunft nicht ausreichend sind, um den Beteiligungsansatz rechtzufertigen.

Die Ertragsteuern beinhalten Aufwendungen i.H.v. T€ 23 (Vj. T€ -1.787) für die Auflösung aktive latenter Steuern sowie i.H.v. T€ 105 (Vj. T€ -667) Körperschaftsteuer inkl. Solidaritätszuschlag.

Finanzlage

Die Finanzlage ist als sehr stabil zu bezeichnen. Verbindlichkeiten werden innerhalb der Zahlungsfristen, soweit möglich unter Ausnutzung von Skonto, beglichen. Gleiches gilt für die Vereinnahmung von Forderungen. Im Geschäftsjahr 2021 konnten die Verbindlichkeiten gegenüber verbundenen Unternehmen sowie Gesellschaftern um T€ 3.885 reduziert werden. Ein Darlehen der Muttergesellschaft NIFCO Inc. in Höhe von T€ 2.000 wurde im Geschäftsjahr zurückgezahlt.

Der nicht ausgeschöpfte Kreditrahmen betrug zum 31. Dezember 2021 T€ 2.000.

Unser Forderungsbestand ist insgesamt als gesund einzustufen, so dass (aufgrund der sehr guten Bonität unserer Kunden) mit keinen größeren Ausfällen zu rechnen ist.

NIFCO Germany finanziert sich neben dem Cash Flow aus der eigenen Tätigkeit im Wesentlichen aus der NIFCO-Gruppe und Kreditinstituten.

Die Gesellschaft war jederzeit in der Lage, die fälligen Zahlungsverpflichtungen zu erfüllen.

Der vereinfachte Cashflow ermittelt aus dem Jahresfehlbetrag korrigiert um die Abschreibung lag mit T€ 8.244 (Vj. T€ 6.356) unterhalb der Planungen.

Vermögenslage

- fortgeschriebener Geschäfts- und Firmenwert	T€ 9.120	(Vj. T€ 12.160)
- fortgeschriebener Kundenstamm	T€ 0	(Vj. T€ 581)

Das Anlagevermögen beträgt im Vergleich zur Bilanzsumme 35,70 % und hat sich insbesondere durch die Abschreibungen auf Finanzanlagen im Vergleich zum Vorjahr um T€ 26.700 reduziert. Die Forderungen gegen verbundene Unternehmen haben sich auf Grund der erfolgten Abwertungen ebenfalls deutlich um T€ 8.460 reduziert. Die Abschreibungen auf Anlagevermögen sowie auf Forderungen gegen verbundene Unternehmen beliefen sich insgesamt auf T€ 43.632.

In 2021 wurde hauptsächlich in den Ausbau der Produktion investiert. Ferner wurden verschiedenste kleinere Investitionen vorgenommen zur Erweiterung und Modernisierung der Betriebsausstattung.

Die Informationen zur Veränderung der Vorräte von T€ 29.651 auf T€ 30.841 zum 31. Dezember 2021 können aus der Bilanz entnommen werden.

Die Forderungen aus Lieferungen und Leistungen sind im Geschäftsjahr 2021 um T€ 2.278 auf T€ 11.168 gesunken. Die Forderungen bestehen gegenüber wenigen Großkunden mit guter Bonität.

Die Forderungen gegen verbundene Unternehmen in Höhe von T€ 3.636 (i. Vj. T€ 12.096) bestehen im Wesentlichen gegenüber dem Tochterunternehmen SEGO GmbH aufgrund von Gewinnabführung (T€ 3.024; i. Vj. T€ 4.006).

Die Verbindlichkeiten gegenüber verbundenen Unternehmen (inkl. Verbindlichkeiten gegenüber Gesellschaftern) teilen sich wie folgt auf:

	2021	2020
NIFCO Inc., Japan	T€ 115	T€ 2.085
NIFCO KTW America Corporation, USA	T€ 45	T€ 18
SEGO GmbH, Deutschland	T€ 577	T€ 2.519
Summe	T€ 737	T€ 4.622

Finanzielle und nichtfinanzielle Leistungsindikatoren

Wir ziehen für unsere interne Unternehmenssteuerung v.a. die Kennzahlen Umsatz sowie EBIT heran, deren Entwicklung im Rahmen der Ausführung zu Vermögens-, Finanz- und Ertragslage erläutert wird.

Nicht finanzielle Leistungsindikatoren sind von untergeordneter Bedeutung und deshalb nicht aufgeführt.

Gesamtaussage

Aufgrund der Entwicklung in 2021 beurteilen wir die Lage der Gesellschaft in Bezug auf die Entwicklung des operativen Geschäfts positiv. Die Ertrags-, Finanz- und Vermögenslage stellt sich zum Zeitpunkt der Aufstellung des Lageberichts - abgesehen von den Sondereffekten aus den Abschreibungen im Zusammenhang mit der Tochtergesellschaft in USA - als solide dar. Trotz der ökonomischen Rahmenbedingungen durch COVID19 und Herausforderungen im Automobilzulieferbereich sowie unter Beachtung aller zum Zeitpunkt der Erstellung des Lageberichts bekannten Gegebenheiten und Fakten liegen gegenwärtig keine Risiken vor, welche die Vermögens-, Finanz- und Ertragslage der NIFCO Germany GmbH wesentlich und nachhaltig beeinträchtigen oder deren Fortbestand in absehbarer Zeit gefährden.

III. Prognosebericht

Die Prognose steht unter der Annahme, dass die für die Geschäftsentwicklung der Gesellschaft wesentlichen gesamtwirtschaftlichen Rahmenbedingungen im Automobilsektor sich stabil entwickeln. Die Prognose für 2022/2023 basiert auf der aktuellen bestehenden Auftragslage der Gesellschaft und unterstellt, dass es in den nächsten Monaten keine gravierenden Einschnitte durch externe Ereignisse geben wird.

Nach Aussage des VDA (Verband der Autoindustrie) wird in Deutschland mit einem Neuzulassungsvolumen von 2,8 Millionen PKW gerechnet. Es bleibt abzuwarten, wie sich in Zukunft der Engpass von Halbleitern auf die Kraftfahrzeugbranche auswirken wird.

Durch weitere geplante Strukturmaßnahmen im Unternehmensbereich werden in Zukunft Voraussetzungen geschaffen, eine noch bessere Kundenzufriedenheit zu gewährleisten.

Auf Basis der aktuellen Entwicklung rechnet die Gesellschaft für das Gesamtjahr 2022 gegenüber dem Jahr 2021 mit einem leicht höheren Umsatz sowie einem moderat negativen EBIT. Somit werden die in 2021 für das Jahr 2022 ursprünglich geplanten Ziele voraussichtlich nicht erreicht werden können. Für das Jahr 2023 wird mit einem im Vergleich zu 2022 nochmals leicht gestiegenen Umsatz sowie mit einem leicht positiven EBIT gerechnet.

Um den Kundenanforderungen auch in Zukunft weiterhin gerecht zu werden, sind weitere Investitionen im Bereich der Produktion geplant. Auch werden interne Umstrukturierungsmaßnahmen stattfinden.

Wie alle Prognosen ist auch diese mit Unsicherheit behaftet und hängt von dem Eintreten der zugrunde liegenden Annahmen und Prämissen ab.

IV. Chancen- und Risikobericht

Risikobericht

Unsere Risiken fassen wir in folgende Kategorien zusammen:

Wirtschaftliche Risiken

Ein Großteil der Umsätze wird auch in Zukunft mit wenigen Großkunden erzielt werden. Hieraus ergeben sich sowohl Chancen als auch Risiken.

Unsere Produkte laufen über einen Zeitraum von etwa 5 - 7 Jahren. Risiken der künftigen geschäftlichen Entwicklung bestehen darin, dass unsere Kunden die vorkalkulierten Abnahmemengen für die Produktlaufzeiten - insbesondere auch auf Grund von Effekten aus der Halbleiterkrise - nicht garantieren können. Diese Risiken werden als moderat eingeschätzt.

Auch im Bereich der Liquidität sind aufgrund der Zugehörigkeit zum "NIFCO-Konzern" keine Risiken zu erwarten. Liquiditätsengpässe sind trotz der aktuellen anhaltenden COVID19 Situation derzeit nicht zu erwarten.

Konkrete Risiken mit Auswirkungen auf die wirtschaftliche Lage oder die voraussichtliche Entwicklung sind nicht erkennbar. Sicherungsgeschäfte wurden nicht getätigt.

Um unsere Liquidität zu sichern haben wir Liquiditätspläne erstellt und verschiedene Szenarien gegenübergestellt. Zur Absicherung haben wir bestehende Linien bei unseren Kreditgebern sowie Zusagen der Muttergesellschaft ausgenutzt. Gegenwärtig sehen wir deshalb keine Liquiditätsengpässe.

Durch das Coronavirus verursachte Risiken sehen wir aus derzeitiger Sicht - vorbehaltlich eines weiteren flächendeckenden harten Lockdowns - als gering an.

Wir rechnen aktuell auch nicht mit wesentlichen Auswirkungen für den Fall, dass eine weitere Welle zu erneuten Schließungen führt.

Chancenbericht

Chancen sehen wir weiterhin aufgrund des Zusammenschlusses der beiden (ehemaligen) Gesellschaften NIFCO KTW GmbH und NIFCO KTS GmbH.

Der Zusammenschluss ermöglicht uns stärkere Wachstumspotentiale, die sich durch Spezialisierung (z.B. Herstellung komplexer Baugruppen, exklusive Beschichtungen der Kunststoffteile vollständig durch die Gesellschaft ohne die Einbeziehung von Dritten) realisieren lassen.

Mit der Tochtergesellschaft in den USA wird - zumindest auf Gruppenebene - ein Wettbewerbsvorteil gegenüber vielen Marktbegleitern geschaffen. Auch eröffnet dieses Werk zukünftig komplett neue Kundenkreise im Bereich der amerikanischen Automotive-Hersteller.

Chancen ergeben sich weiterhin durch weitere größere Projekte mit einigen Großkunden. Hier konnten bereits aufgrund der sehr guten Geschäftsbeziehung in der Vergangenheit erfolgreich Projekte umgesetzt werden.

Gesamtaussage

Risiken der künftigen Entwicklung sehen wir weiterhin in einem schwierigen Wettbewerbsumfeld im Automobilzulieferbereich.

Bericht über Zweigniederlassungen

Es bestehen folgende Zweigniederlassungen:

―	Solingen (Produktionsstandort)
―	München (Entwicklungsbüro)

Sonstige Informationen

Weißenburg, den 9. Dezember 2022

Toshiyuki Yamamoto

Masaharu Shibao

Masaya Nagaoka

Fukuo Iwasaki

Karsten Schmidt

Mike Schmidt

Tony Schmidt

Joan Oliveras

Seiichiro Kashimori

Bilanz zum 31. Dezember 2021

Aktiva

	31.12.2021		31.12.2020
	EUR	EUR	EUR	EUR
A. Anlagevermögen
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte sowie Lizenzen an solchen Rechten und Werten	213.790,01		298.689,01
2. Kundenstamm	1,01		581.440,01
3. Geschäfts- oder Firmenwert	9.120.142,00	9.333.933,02	12.160.189,00	13.040.318,02
II. Sachanlagen
1. Grundstücke, grundstücksgleiche Rechte und Bauten einschließlich der Bauten auf fremden Grundstücken	2.868.599,50		2.343.490,83
2. Technische Anlagen und Maschinen	12.356.102,21		8.799.211,30
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	3.568.601,53		4.069.764,53
4. Geleistete Anzahlungen und Anlagen im Bau	51.728,97	18.845.032,21	134.249,02	15.346.715,68
III. Finanzanlagen
Anteile an verbundenen Unternehmen		8.927.003,32		35.419.434,75
		37.105.968,55		63.806.468,45
B. Umlaufvermögen
I. Vorräte
1. Roh-, Hilfs- und Betriebsstoffe	5.776.283,09		3.946.506,04
2. Unfertige Erzeugnisse, unfertige Leistungen	6.902.591,56		7.933.101,02
3. Fertige Erzeugnisse und Waren	12.732.194,26		15.032.693,59
4. geleistete Anzahlungen	5.430.390,80	30.841.459,71	2.738.618,01	29.650.918,66
II. Forderungen und sonstige Vermögensgegenstände
1. Forderungen aus Lieferungen und Leistungen	11.167.883,09		13.445.632,26
2. Forderungen gegen verbundene Unternehmen	3.635.891,67		12.095.965,84
3. Sonstige Vermögensgegenstände	5.785.312,11	20.589.086,87	5.334.132,11	30.875.730,21
III. Kassenbestand und Guthaben bei Kreditinstituten		7.763.531,31		7.607.005,49
		59.194.077,89		68.133.654,36
C. Rechnungsabgrenzungsposten		759.529,16		444.589,60
D. Aktive latente Steuern		6.888.769,66		6.912.219,80
		103.948.345,26		139.296.932,21
Passiva
			31.12.2021 EUR	31.12.2020 EUR
A. Eigenkapital
I. Gezeichnetes Kapital			25.000,00	25.000,00
II. Kapitalrücklage			96.271.705,05	96.271.705,05
III. Gewinnvortrag			10.063.964,02	12.092.102,87
IV. Jahresfehlbetrag			-35.388.201,11	-2.028.138,85
			70.972.467,96	106.360.669,07
B. Rückstellungen
Sonstige Rückstellungen			2.382.543,76	2.960.893,92
C. Verbindlichkeiten
1. Verbindlichkeiten gegenüber Kreditinstituten			22.425.670,93	19.734.098,93
2. erhaltene Anzahlungen			786.890,63	135.366,26
3. Verbindlichkeiten aus Lieferungen und Leistungen			4.590.014,51	3.352.301,65
4. Verbindlichkeiten gegenüber Gesellschafter			114.832,49	2.085.030,77
5. Verbindlichkeiten gegenüber verbundenen Unternehmen			622.286,95	2.536.621,90
6. Sonstige Verbindlichkeiten			2.053.638,03	2.131.949,71
			30.593.333,54	29.975.369,22
			103.948.345,26	139.296.932,21

Gewinn- und Verlustrechnung für die Zeit vom 1. Januar bis 31. Dezember 2021

	2021		2020
	EUR	EUR	EUR	EUR
1. Umsatzerlöse		117.966.411,75		110.738.678,12
2. Verminderung (i. Vj. Erhöhung) des Bestands an fertigen und unfertigen Erzeugnissen		-2.586.393,14		8.101.556,14
3. Sonstige betriebliche Erträge		2.435.541,58		4.822.875,83
4. Materialaufwand
a) Aufwendungen für Roh-, Hilfs- und Betriebsstoffe und für bezogene Waren	-46.059.733,18		-60.958.789,37
b) Aufwendungen für bezogene Leistungen	-15.531.009,84	-61.590.743,02	-12.494.270,18	-73.453.059,55
5. Personalaufwand
a) Löhne und Gehälter	-25.628.317,79		-24.673.640,92
b) Soziale Abgaben und Aufwendungen für Altersversorgung	-5.073.360,23	-30.701.678,02	-5.162.659,33	-29.836.300,25
6. Abschreibungen
a) auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen	-8.639.344,56		-8.384.051,62
b) auf Vermögensgegenstände des Umlaufvermögens, soweit diese die in der Kapitalgesellschaft üblichen Abschreibungen überschreiten	-8.500.000,00	-17.139.344,56	0,00	-8.384.051,62
7. Sonstige betriebliche Aufwendungen		-19.013.797,51		-17.490.543,90
8. Erträge aus Gewinnabführungsverträgen		1.911.143,89		1.112.491,07
9. Sonstige Zinsen und ähnliche Erträge		91.757,22		68.789,13
10. Abschreibungen auf Finanzanlagen und auf Wertpapiere des Umlaufvermögens		-26.492.439,93		0,00
11. Zinsen und ähnliche Aufwendungen		-131.664,07		-154.649,03
12. Steuern vom Einkommen und vom Ertrag		-128.515,30		2.454.631,21
13. Ergebnis nach Steuern		-35.379.721,11		-2.019.582,85
14. Sonstige Steuern		-8.480,00		-8.556,00
15. Jahresfehlbetrag		-35.388.201,11		-2.028.138,85

Anhang für das Geschäftsjahr 2021

I. ALLGEMEINE ERLÄUTERUNGEN ZUM JAHRESABSCHLUSS

Die NIFCO Germany GmbH, Weißenburg, (im Folgenden kurz "Gesellschaft" genannt) hat ihren Sitz in Weißenburg und ist im Handelsregister des Amtsgericht Ansbach, Abteilung B, unter Nummer 5941 seit dem 24. November 2014 eingetragen.

Der Jahresabschluss der NIFCO Germany GmbH, Weißenburg, für das Geschäftsjahr zum 31. Dezember 2021 wurde gemäß §§ 242 ff. und 264 ff. des HGB sowie nach den einschlägigen Vorschriften des GmbHG aufgestellt.

Angaben, die wahlweise in der Bilanz, in der Gewinn- und Verlustrechnung oder im Anhang gemacht werden können, sind vorzugsweise im Anhang aufgeführt.

Die Gewinn- und Verlustrechnung ist nach dem Gesamtkostenverfahren gemäß § 275 Abs. 2 HGB gegliedert.

Die Gesellschaft ist eine große Kapitalgesellschaft im Sinne des § 267 Abs. 3 HGB.

II. BILANZIERUNGS- UND BEWERTUNGSGRUNDSÄTZE

1. Anlagevermögen

Das Sachanlagevermögen wurde zu Anschaffungs- bzw. Herstellungskosten angesetzt und soweit abnutzbar, um planmäßige Abschreibungen vermindert. Die planmäßigen Abschreibungen wurden nach der voraussichtlichen Nutzungsdauer der Vermögensgegenstände und in Anlehnung an die steuerlichen Vorschriften linear (pro rata temporis) vorgenommen. Außerplanmäßige Abschreibungen werden vorgenommen, soweit der Ansatz mit einem niedrigeren beizulegenden Wert erforderlich ist.

Die Finanzanlagen werden zu Anschaffungskosten bilanziert. Soweit erforderlich, wurde bei voraussichtlich dauernder Wertminderung der am Bilanzstichtag niedrigere beizulegende Wert angesetzt.

2. Vorräte

Geleistete Anzahlungen werden zu Anschaffungskosten angesetzt.

3. Forderungen und sonstige Vermögensgegenstände

Dem allgemeinen Kreditrisiko ist durch eine pauschale Wertberichtigung in Höhe von 0,3>bis 1 % (je nach Kundenkreis) auf die nicht einzelwertberichtigten Forderungen ausreichend Rechnung getragen.

4. Kassenbestand und Guthaben bei Kreditinstituten

Kassenbestand und Guthaben bei Kreditinstituten werden zum Nennwert angesetzt

5. Rechnungsabgrenzungsposten

Als Rechnungsabgrenzungsposten sind auf der Aktivseite Ausgaben vor dem Abschlussstichtag ausgewiesen, soweit sie Aufwand für eine bestimmte Zeit danach darstellen.

6. Latente Steuern

7. Rückstellungen

Die Sonstigen Rückstellungen werden in Höhe des notwendigen Erfüllungsbetrages angesetzt, der nach vernünftiger kaufmännischer Beurteilung notwendig ist, um alle zum Bilanzstichtag bereits erkennbaren Risiken und ungewisse Verbindlichkeiten abzudecken.

Die Rückstellungen für Dienstjubiläen werden mit dem ihrer Restlaufzeit entsprechenden von der deutschen Bundesbank ermittelten durchschnittlichen Marktzinssatz der vergangenen sieben Geschäftsjahre abgezinst.

Sofern Schätzverfahren bei der Ermittlung von Rückstellungen genutzt wurden, basieren diese auf Erfahrungswerten sowie Kostenschätzungen unter Berücksichtigung der verfügbaren Informationen.

8. Verbindlichkeiten

Verbindlichkeiten werden mit dem Erfüllungsbetrag angesetzt.

9. Verbundene Unternehmen

Als verbundene Unternehmen werden alle Gesellschaften angesehen, auf welche die NIFCO Inc., Tokio, Japan, unmittel- oder mittelbar einen beherrschenden Einfluss ausüben kann.

10. Auf fremde Währung lautende Vermögensgegenstände und Verbindlichkeiten

Forderungen und Verbindlichkeiten in Fremdwährung werden mit dem Kurs am Tag des Geschäftsvorfalls bewertet.

III. ERLÄUTERUNGEN ZU EINZELNEN BILANZPOSITIONEN

1. Immaterielle Vermögensgegenstände

Der Geschäfts- und Firmenwert und der Kundenstamm resultieren aus der Anwachsung der KTW KG (KTW Kunststofftechnik Weißenburg GmbH & Co.KG) sowie der JK KG (JK Industrielackierungen GmbH & Co.KG) mit Wirkung zum 31. Dezember 2014.

Der Kundenstamm wird in der Höhe prozentual abgeschrieben, die sich aus dem Verhältnis der budgetierten Umsatzerlöse pro Jahr zu den gesamten budgetierten Umsatzerlösen ergibt.

2. Anlagevermögen

Zur Entwicklung des Anlagevermögens im Geschäftsjahr 2021 wird auf den separat dargestellten Anlagenspiegel verwiesen (siehe Anlage 1 zum Anhang).

3. Angaben über den Anteilsbesitz an anderen Unternehmen von mind. 20 Prozent der Anteile

Gemäß § 285 Nr. 11 HGB wird über nachstehende Unternehmen berichtet:

Firmenname/Sitz	Anteilshöhe	Jahresergebnis	Gezeichnetes Kapital
SEGO GmbH, Solingen	100%	1.911.143,89 EUR (vor Ergebnisabführung)	26.000,00 EUR
NIFCO KTW America Corporation, Toccoa (USA)	90%	-5.074.666,50 USD	1.000,00 USD
NIFCO Germany d.o.o., Subotica (Serbien)	100%	-13.732.432,15 RSD	1.000,00 RSD

Die Tochtergesellschaft NIFCO Germany d.o.o. wurde erst im Berichtsjahr gegründet, weshalb trotz der Anlaufverluste keine Abwertung auf den Beteiligungsbuchwert durchgeführt wurde.

4. Vorräte

In den fertigen Erzeugnissen sind Werkzeuge enthalten, die für den Verkauf an Kunden bzw. die Tochtergesellschaft in USA vorgesehen sind. Der Gesamtbestand dieser Werkzeuge beträgt zum Stichtag TEUR 0 (i. Vj. TEUR 473).

5. Forderungen und sonstige Vermögensgegenstände

Die Forderungen aus Lieferungen und Leistungen haben wie im Vorjahr ausnahmslos Restlaufzeiten von bis zu einem Jahr.

Die Forderungen gegen verbundene Unternehmen bestehen im Wesentlichen aus dem Liefer- und Leistungsverkehr mit der NIFCO KTW America Corporation (TEUR 320; i. Vj. TEUR 7.191) sowie der Forderung aus Ergebnisabführung gegen die SEGO GmbH (TEUR 3.024; i. Vj. TEUR 4.006).

In Jahr 2021 wurde ein Darlehen gegenüber NIFCO KTW America Corporation in Höhe von TEUR 8.500 abgeschrieben, da aus derzeitiger Sicht in absehbarer Zeit nicht mit einer Rückzahlung zu rechnen ist. Dies begründet den hohen Rückgang der Forderungen gegenüber verbundenen Unternehmen.

Die Forderungen gegen die Gesellschafterin NIFCO Inc. betragen TEUR 97 (i. Vj. TEUR 99) und resultieren wie im Vorjahr ausschließlich aus dem Liefer- und Leistungsverkehr. Die übrigen Forderungen gegen verbundene Unternehmen resultieren ebenfalls wie im Vorjahr aus dem Liefer- und Leistungsverkehr. Die Forderungen gegen verbundene Unternehmen haben, wie im Vorjahr, Restlaufzeiten von weniger als einem Jahr.

Die sonstigen Vermögensgegenstände beinhalten im Wesentlichen Erstattungen für Ertragsteuern (TEUR 4.628), Kundenforderungen, Kautionen, Energiesteuer und Arbeitnehmerdarlehen. In Höhe von TEUR 315 (i. Vj. TEUR 315) haben die sonstigen Vermögensgegenstände Restlaufzeiten von mehr als einem Jahr.

6. Latente Steuern

Die aktiven latenten Steuern ergeben sich unter Anwendung eines Steuersatzes von 29,65 %.

Zur Entwicklung der latenten Steuern wird auf die separat dargestellte Übersicht verwiesen (siehe Anlage 2 zum Anhang).

7. Sonstige Rückstellungen

Die ausgewiesenen sonstigen Rückstellungen in Höhe von TEUR 2.383 enthalten personalbezogene Rückstellungen (TEUR 1.554), Garantierückstellungen (TEUR 489), Rückstellungen für Jahresabschlusskosten (TEUR 177), Rückstellung für Aufbewahrungspflicht (TEUR 20) und Verschiedene (TEUR 143).

8. Verbindlichkeiten gegenüber Gesellschafter

Die Verbindlichkeiten gegenüber dem Gesellschafter resultieren im Wesentlichen aus dem Liefer- und Leistungsverkehr.

9. Verbindlichkeiten

Die in der Bilanz ausgewiesenen Verbindlichkeiten haben folgende Laufzeiten:

	Gesamt EUR	Restlaufzeit < 1 Jahr EUR	Restlaufzeit 1-5 Jahre EUR	Restlaufzeit > 5 Jahre EUR	Art der Sicherheit
Verbindlichkeiten gegenüber Kreditinstituten	22.425.670,93	22.308.428,00	117.242,93	0,00	Bürgschaft Konzernmutter
	(VJ 19.734.098,93)	(VJ 19.308.428,00)	(VJ 425.670,93)	(VJ 0,00)
Erhaltene Anzahlungen	786.890,63	786.890,63	0,00	0,00
	(VJ 135.366,26)	(VJ 135.366,26)	(VJ 0,00)	(VJ 0,00)
Verbindlichkeiten aus Lieferungen und Leistungen	4.590.014,51	4.590.014,51	0,00	0,00
	(VJ 3.352.301,65)	(VJ 3.352.301,65)	(VJ 0,00)	(VJ 0,00)
Verbindlichkeiten ggü. Gesellschafter	114.832,49	114.832,49	0,00	0,00
	(VJ 2.085.030,77)	(VJ 2.085.030,77)	(VJ 0,00)	(VJ 0,00)
Verbindlichkeiten ggü. verbundenen Unternehmen	622.286,95	622.286,95	0,00	0,00
	(VJ 2.536.621,90)	(VJ 2.536.621,90)	(VJ 0,00)	(VJ 0,00)
Sonstige Verbindlichkeiten	2.053.638,03	2.053.638,03	0,00	0,00
	(VJ 2.131.949,71)	(VJ 2.131.949,71)	(VJ 0,00)	(VJ 0,00)
Summe	30.593.333,54	30.476.090,61	117.242,93	0,00
	(VJ 29.975.369,22)	(VJ 29.549.698,29)	(VJ 425.670,93)	(VJ 0,00)

Die Verbindlichkeiten gegenüber verbundenen Unternehmen resultieren, wie im Vorjahr, aus Lieferungen und Leistungen.

Die sonstigen Verbindlichkeiten beinhalten Verbindlichkeiten aus Steuern in Höhe von EUR 1.452.127,75 (VJ EUR 1.352.787,14) sowie Verbindlichkeiten aus der sozialen Sicherheit in Höhe von EUR 97.747,98 (VJ EUR 88.922,93).

Der Gesamtbetrag der Verbindlichkeiten, der durch eine Garantie der NIFCO Inc. gesichert ist, beträgt TEUR 24.000.

1. Ausschüttungsgesperrte Beträge

Für die Ausschüttung gesperrte Beträge i. S. d. § 268 Abs. 8 HGB bestehen in Höhe von TEUR 6.889 aus der Aktivierung latenter Steuern.

IV. ERLÄUTERUNGEN ZU EINZELNEN POSITIONEN DER GEWINN- UND VERLUSTRECHNUNG

Umsätze nach Marktsegmenten

Spritzguss- bzw. veredelte Kunststoffteile	87.251.678,98 €
Entwicklungsdienstleistung/Werkzeuggeschäft	22.615.134,63 €
Lohnveredelung	6.943.117,83 €
Sonstiger Umsatz	1.868.346,20 €
Umsätze vor Erlösschmälerungen	118.678.277,64 €

Umsätze nach Märkten

Europa	113.915.055,80 €
USA	3.326.235,75 €
Asien	549.222,31 €
Mexiko	887.763,78 €
Umsätze vor Erlösschmälerungen	118.678.277,64 €

Sonstige betriebliche Erträge

Die sonstigen betrieblichen Erträge enthalten Erträge aus der Währungsumrechnung in Höhe von EUR 44.386,26 (VJ EUR 9.581,36).

Sonstige betriebliche Aufwendungen

Die sonstigen betrieblichen Aufwendungen enthalten Aufwendungen aus der Währungsumrechnung in Höhe von EUR 54.003,57 (VJ EUR 22.347,71).

Sonstige Zinsen und ähnliche Erträge

Zinsen aus verbundenen Unternehmen belaufen sich im Geschäftsjahr auf TEUR 66 (i. Vj. TEUR 67).

Zinsen und ähnliche Aufwendungen

Die Zinsaufwendungen resultieren mit TEUR 22 (i. Vj. TEUR 51) aus Zinsaufwendungen an verbundene Unternehmen.

V. SONSTIGE ANGABEN

1. Außerbilanzielle Geschäfte/Sonstige finanzielle Verpflichtungen

Der Nutzung eines Teils unserer Produktionsanlagen sowie von Grundstücken und Gebäuden liegen Operating-Leasingvereinbarungen zugrunde. Diese tragen zur Verringerung der Kapitalbindung bei und belassen das Investitionsrisiko beim Leasinggeber. Die Leasingvereinbarungen haben eine Restlaufzeit zwischen 1 und 8 Jahren und führten im Jahr 2021 zu einem Leasingaufwand in Höhe von TEUR 3.896 (VJ TEUR 3.992).

Grundstücke und Gebäude	3.439.305 €
BGA	260.430 €
Fahrzeuge	196.565 €
Operating Leasing	3.896.300 €

	2022 €	2023 €	2024 €	>2025 €	Gesamt €
Mieten für Grundstücke und Gebäude	3.212.576	2.551.864	1.434.791	7.010.278	14.209.509
Mieten, Leasing für Maschinen und Betriebsausstattung	4.000	0	0	0	4.000
PKW	133.661	68.033	19.127	0	220.821
Mieten, Leasing für Geschäftsausstattung	117.217	93.586	24.661	4.249	239.713
Gesamt	3.467.454	2.713.483	1.478.579	7.014.527	14.674.043

2. Haftungsverhältnisse

Zum Bilanzstichtag bestehen keine Haftungsverhältnisse, auch nicht gegenüber verbundenen oder assoziierten Unternehmen, über die gemäß § 251 HGB zu berichten wäre.

3. Geschäftsführung und Vertretungsbefugnis

Der Geschäftsführung gehörten im Berichtsjahr an:

―	Roland Furtmayr, Weißenburg, Deutschland, Kaufmann (bis 29. Juni 2022)
―	Karsten Schmidt, Oberneuching, Deutschland, Kaufmann
―	Mike Schmidt, Solingen, Deutschland, Kaufmann
―	Tony Schmidt, Solingen, Deutschland, Kaufmann
―	Masaharu Shibao, Tokio, Japan, Kaufmann
―	Takashi Koarashi, Suwanee GA, USA, Kaufmann (bis 29. Juni 2022)
―	Fukuo Iwasaki, Yokohama, Japan, Kaufmann
―	Joan Oliveras, Weißenburg, Deutschland, Kaufmann (ab 29. Juni 2022)
―	Seiichiro Kashimori, Tokio, Japan, Kaufmann (ab 29. Juni 2022)

Die Gesellschaft wird durch zwei o.g. Geschäftsführer oder durch einen Geschäftsführer gemeinsam mit einem Prokuristen vertreten.

Des Weiteren sind folgende Geschäftsführer bestellt, die einzelvertretungsberechtigt und von den Beschränkungen des § 181 BGB (Selbstkontrahierungsverbot) befreit sind:

―	Toshiyuki Yamamoto, Tokio, Japan, Kaufmann
―	Masaya Nagaoka, Tokio, Japan, Kaufmann

Zu Prokuristen sind ernannt:

―	Thomas Werzinger, Weißenburg, Deutschland
―	Stefan Holz, Markt Berolzheim, Deutschland
―	Christine Kaufmann, Ellingen, Deutschland

Die Prokuristen vertreten die Gesellschaft gemeinsam mit einem Geschäftsführer.

4. Mitarbeiter im Durchschnitt des Geschäftsjahres

Im Geschäftsjahr waren durchschnittlich 527 gewerbliche Arbeitnehmer und 196 Angestellte beschäftigt.

5. Bezüge der Organe der Gesellschaft

Die Gesamtbezüge der Geschäftsführer betrugen im Berichtsjahr TEUR 441 (i. Vj. TEUR 1.184).

6. Honorar des Abschlussprüfers

Das Honorar des Abschlussprüfers für das Geschäftsjahr 2021 beträgt TEUR 151 und betrifft ausschließlich Abschlussprüfungsleistungen.

7. Konzernzugehörigkeit/Konzernabschluss

Die Gesellschaft wird in den Konzernabschluss der NIFCO Inc., der nach Japanischen Financial Reporting Standards ("J-GAAP") aufgestellt wird, einbezogen und nimmt für das Jahr 2021 die Befreiung von der Aufstellung eines Konzernabschlusses und eines Konzernlageberichtes nach § 292 HGB in Anspruch. Dieser Konzernabschluss ist in den Geschäftsräumen der NIFCO Inc. einsehbar.

Der Konzernabschluss der NIFCO Inc. wird nach seiner Aufstellung in deutscher Sprache im elektronischen Bundesanzeiger veröffentlicht werden.

Rechnungslegungsunterschiede zwischen HGB und J-GAAP im Konzernabschluss

Hier sind insbesondere die folgenden wesentlichen Rechnungslegungsunterschiede zu nennen:

Die Gliederung nach J-GAAP richtet sich bei den Vermögensgegenständen nach dem Grad der Liquidierbarkeit und bei den Schulden nach Restlaufzeit. Die Gliederung nach HGB ist im § 266 HGB definiert.

Bei der Kalkulation der Abschreibungen liegen zum Teil unterschiedliche Nutzungsdauern der jeweiligen Gegenstände des Anlagevermögens zugrunde.

8. Ergebnisverwendung

Der Gesellschafterversammlung wird vorgeschlagen, den Jahresfehlbetrag in Höhe von EUR 35.388.201,11 auf neue Rechnung vorzutragen.

9. Nachtragsbericht

Vorgänge von besonderer Bedeutung nach dem Bilanzstichtag haben sich nicht ereignet.

Weißenburg, den 09.12.2022

Toshiyuki Yamamoto

Masaharu Shibao

Masaya Nagaoka

Fukuo Iwasaki

Karsten Schmidt

Mike Schmidt

Tony Schmidt

Joan Oliveras

Seiichiro Kashimori

Erläuterungen zur Bilanz zum 31. Dezember 2021

Entwicklung des Anlagevermögens

	Anschaffungs- und Herstellungskosten
	01. Jan. 2021 NIFCO Germany GmbH €	Zugänge NIFCO Germany GmbH €	Umbuchungen NIFCO Germany GmbH €	Abgänge NIFCO Germany GmbH €	31. Dez. 2021 NIFCO Germany GmbH €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte sowie Lizenzen an solchen Rechten und Werten	1.262.577,50	53.742,86	0,00	41.334,59	1.274.985,77
3. Kundenstamm	19.913.662,65	0,00	0,00	0,00	19.913.662,65
4. Geschäfts- oder Firmenwert	38.447.565,42	0,00	0,00	0,00	38.447.565,42
	59.623.805,57	53.742,86	0,00	41.334,59	59.636.213,84
II. SACHANLAGEN
1. Grundstücke, grundstücksgleiche Rechte und Bauten einschließlich der Bauten auf fremden Grundstücken	4.357.139,44	1.003.382,56	0,00	66.533,70	5.293.988,30
2. Technische Anlagen und Maschinen	30.695.977,11	5.498.877,25	1.486.940,66	1.324.148,93	36.357.646,09
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	10.288.843,89	521.753,31	0,00	218.334,53	10.592.262,67
4. Geleistete Anzahlungen und Anlagen im Bau	125.799,02	1.404.420,61	-1.486.940,66	-8.450,00	51.728,97
	45.467.759,46	8.428.433,73	0,00	1.600.567,16	52.295.626,03
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	44.514.910,75	8,50	0,00	0,00	44.514.919,25
	149.606.475,78	8.482.185,09	0,00	1.641.901,75	156.446.759,12

	Kumulierte Abschreibungen
	01. Jan. 2021 NIFCO Germany GmbH €	Zuführungen NIFCO Germany GmbH €	Umbuchungen NIFCO Germany GmbH €	Abgänge NIFCO Germany GmbH €	31. Dez. 2021 NIFCO Germany GmbH €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte sowie Lizenzen an solchen Rechten und Werten	963.888,49	138.637,86	0,00	41.330,59	1.061.195,76
3. Kundenstamm	19.332.222,64	581.439,00	0,00	0,00	19.913.661,64
4. Geschäfts- oder Firmenwert	26.287.376,42	3.040.047,00	0,00	0,00	29.327.423,42
	46.583.487,55	3.760.123,86	0,00	41.330,59	50.302.280,82
II. SACHANLAGEN
1. Grundstücke, grundstücksgleiche Rechte und Bauten einschließlich der Bauten auf fremden Grundstücken	2.013.648,61	439.674,89	0,00	27.934,70	2.425.388,80
2. Technische Anlagen und Maschinen	21.896.765,81	3.428.913,50	0,00	1.324.135,43	24.001.543,88
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	6.219.079,36	1.010.632,31	0,00	206.050,53	7.023.661,14
4. Geleistete Anzahlungen und Anlagen im Bau	-8.450,00	0,00	0,00	-8.450,00	0,00
	30.121.043,78	4.879.220,70	0,00	1.549.670,66	33.450.593,82
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	9.095.476,00	26.492.439,93	0,00	0,00	35.587.915,93
	85.800.007,33	35.131.784,49	0,00	1.591.001,25	119.340.790,57

	Buchwert
	31. Dez. 2021 NIFCO Germany GmbH €	31. Dez. 2020 NIFCO KTW GmbH €
I. IMMATERIELLE VERMÖGENSGEGENSTÄNDE
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte sowie Lizenzen an solchen Rechten und Werten	213.790,01	298.689,01
3. Kundenstamm	1,01	581.440,01
4. Geschäfts- oder Firmenwert	9.120.142,00	12.160.189,00
	9.333.933,02	13.040.318,02
II. SACHANLAGEN
1. Grundstücke, grundstücksgleiche Rechte und Bauten einschließlich der Bauten auf fremden Grundstücken	2.868.599,50	2.343.490,83
2. Technische Anlagen und Maschinen	12.356.102,21	8.799.211,30
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	3.568.601,53	4.069.764,53
4. Geleistete Anzahlungen und Anlagen im Bau	51.728,97	134.249,02
	18.845.032,21	15.346.715,68
III. FINANZANLAGEN
Anteile an verbundenen Unternehmen	8.927.003,32	35.419.434,75
	37.105.968,55	63.806.468,45

Erläuterungen zur Bilanz zum 31. Dezember 2021

Aktive latente Steuern

Aktiva

	31. Dezember 2020
Bilanzposition	Handelsbilanz €	Steuerbilanz €	Abweichung €
Kundenstamm	581.440,01	0,00	-581.440,01
Geschäfts- oder Firmenwert	12.160.188,00	33.798.025,62	21.637.837,62
Sonstiges Anlagevermögen	227.644,91	198.593,67	-29.051,24
Forderungen aus LuL in Fremdwährung	39.921,55	44.030,12	4.108,57
Verlustvortrag (GewSt)	0,00	4.232.662,00	4.232.662,00
Verlustvortrag (KSt)	0,00	0,00	0,00
Unfertige Erzeugnisse (BP-Feststellung)	0,00	0,00	0,00
	13.009.194,47	38.273.311,41	25.264.116,94
Passiva
Jubiläumsrückstellung	181.152,00	65.648,00	115.504,00
Urlaubsrückstellung	706.885,89	624.551,43	82.334,46
Überstundenrückstellung	201.917,15	177.687,11	24.230,04
Verbindlichkeiten aus LuL in Fremdwährung	5.246,01	6.444,17	-1.198,16
	1.095.201,05	874.330,71	220.870,34
			25.484.987,28

Aktiva

	31. Dezember 2021
Bilanzposition	Handelsbilanz €	Steuerbilanz €	Abweichung €	Steuersatz
Kundenstamm	1,01	0,00	-1,01	29,65%
Geschäfts- oder Firmenwert	9.120.142,00	29.725.790,11	20.605.648,11	29,65%
Sonstiges Anlagevermögen	120.069,00	131.742,67	11.673,67	29,65%
Forderungen aus LuL in Fremdwährung	0,00	0,00	0,00	29,65%
Verlustvortrag (GewSt)	0,00	4.240.926,34	4.240.926,34	13,82%
Verlustvortrag (KSt)	0,00	630.275,53	630.275,53	15,83%
Unfertige Erzeugnisse (BP-Feststellung)	7.647.207,21	7.697.207,21	50.000,00	29,65%
	16.887.419,22	42.425.941,86	25.538.522,64
Passiva
Jubiläumsrückstellung	196.160,00	75.520,00	120.640,00	29,65%
Urlaubsrückstellung	653.265,54	568.492,05	84.773,49	29,65%
Überstundenrückstellung	233.232,88	184.655,56	48.577,32	29,65%
Verbindlichkeiten aus LuL in Fremdwährung	46.558,81	46.650,33	-91,52	29,65%
	1.129.217,23	875.317,94	253.899,29
			25.792.421,93
	Aktive latente Steuern 31.12.2021		6.888.769,66
bislang	aktive latente Steuern		6.912.219,80
	Verminderung aktive latente Steuern (Aufwand)		-23.450,14

Bestätigungsvermerk des unabhängigen Abschlussprüfers

An die NIFCO Germany GmbH, Weißenburg

Prüfungsurteile

Wir haben den Jahresabschluss der NIFCO Germany GmbH, Weißenburg, - bestehend aus der Bilanz zum 31. Dezember 2021 und der Gewinn- und Verlustrechnung für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2021 sowie dem Anhang, einschließlich der Darstellung der Bilanzierungs- und Bewertungsmethoden - geprüft. Darüber hinaus haben wir den Lagebericht der NIFCO Germany GmbH für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2021 geprüft.

Die Erklärung zur Unternehmensführung nach § 289f Abs. 4 HGB (Angaben zur Frauenquote), die in Abschnitt "Sonstige Informationen" des Lageberichts enthalten ist, haben wir in Einklang mit den deutschen gesetzlichen Vorschriften nicht inhaltlich geprüft.

Nach unserer Beurteilung aufgrund der bei der Prüfung gewonnenen Erkenntnisse

―

entspricht der beigefügte Jahresabschluss in allen wesentlichen Belangen den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften und vermittelt unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens- und Finanzlage der Gesellschaft zum 31. Dezember 2021 sowie ihrer Ertragslage für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2021 und

―

Gemäß § 322 Abs. 3 Satz 1 HGB erklären wir, dass unsere Prüfung zu keinen Einwendungen gegen die Ordnungsmäßigkeit des Jahresabschlusses und des Lageberichts geführt hat.

Grundlage für die Prüfungsurteile

Sonstige Informationen

Im Zusammenhang mit unserer Prüfung haben wir die Verantwortung, die oben genannten sonstigen Informationen zu lesen und dabei zu würdigen, ob die sonstigen Informationen

―	wesentliche Unstimmigkeiten zum Jahresabschluss, zu den inhaltlich geprüften Lageberichtsangaben oder unseren bei der Prüfung erlangten Kenntnissen aufweisen oder
―	anderweitig wesentlich falsch dargestellt erscheinen.

Verantwortung der gesetzlichen Vertreter für den Jahresabschluss und den Lagebericht

Die gesetzlichen Vertreter sind verantwortlich für die Aufstellung des Jahresabschlusses, der den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften in allen wesentlichen Belangen entspricht, und dafür, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt. Ferner sind die gesetzlichen Vertreter verantwortlich für die internen Kontrollen, die sie in Übereinstimmung mit den deutschen Grundsätzen ordnungsmäßiger Buchführung als notwendig bestimmt haben, um die Aufstellung eines Jahresabschlusses zu ermöglichen, der frei von wesentlichen - beabsichtigten oder unbeabsichtigten - falschen Darstellungen ist.

Verantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts

Unsere Zielsetzung ist, hinreichende Sicherheit darüber zu erlangen, ob der Jahresabschluss als Ganzes frei von wesentlichen - beabsichtigten oder unbeabsichtigten - falschen Darstellungen ist, und ob der Lagebericht insgesamt ein zutreffendes Bild von der Lage der Gesellschaft vermittelt sowie in allen wesentlichen Belangen mit dem Jahresabschluss sowie mit den bei der Prüfung gewonnenen Erkenntnissen in Einklang steht, den deutschen gesetzlichen Vorschriften entspricht und die Chancen und Risiken der zukünftigen Entwicklung zutreffend darstellt, sowie einen Bestätigungsvermerk zu erteilen, der unsere Prüfungsurteile zum Jahresabschluss und zum Lagebericht beinhaltet.

Hinreichende Sicherheit ist ein hohes Maß an Sicherheit, aber keine Garantie dafür, dass eine in Übereinstimmung mit § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung durchgeführte Prüfung eine wesentliche falsche Darstellung stets aufdeckt. Falsche Darstellungen können aus Verstößen oder Unrichtigkeiten resultieren und werden als wesentlich angesehen, wenn vernünftigerweise erwartet werden könnte, dass sie einzeln oder insgesamt die auf der Grundlage dieses Jahresabschlusses und Lageberichts getroffenen wirtschaftlichen Entscheidungen von Adressaten beeinflussen.

Während der Prüfung üben wir pflichtgemäßes Ermessen aus und bewahren eine kritische Grundhaltung. Darüber hinaus

―	identifizieren und beurteilen wir die Risiken wesentlicher - beabsichtigter oder unbeabsichtigter - falscher Darstellungen im Jahresabschluss und im Lagebericht, planen und führen Prüfungshandlungen als Reaktion auf diese Risiken durch sowie erlangen Prüfungsnachweise, die ausreichend und geeignet sind, um als Grundlage für unsere Prüfungsurteile zu dienen. Das Risiko, dass wesentliche falsche Darstellungen nicht aufgedeckt werden, ist bei Verstößen höher als bei Unrichtigkeiten, da Verstöße betrügerisches Zusammenwirken, Fälschungen, beabsichtigte Unvollständigkeiten, irreführende Darstellungen bzw. das Außerkraftsetzen interner Kontrollen beinhalten können.
―	gewinnen wir ein Verständnis von dem für die Prüfung des Jahresabschlusses relevanten internen Kontrollsystem und den für die Prüfung des Lageberichts relevanten Vorkehrungen und Maßnahmen, um Prüfungshandlungen zu planen, die unter den gegebenen Umständen angemessen sind, jedoch nicht mit dem Ziel, ein Prüfungsurteil zur Wirksamkeit dieser Systeme der Gesellschaft abzugeben.
―	beurteilen wir die Angemessenheit der von den gesetzlichen Vertretern angewandten Rechnungslegungsmethoden sowie die Vertretbarkeit der von den gesetzlichen Vertretern dargestellten geschätzten Werte und damit zusammenhängenden Angaben.
―	ziehen wir Schlussfolgerungen über die Angemessenheit des von den gesetzlichen Vertretern angewandten Rechnungslegungsgrundsatzes der Fortführung der Unternehmenstätigkeit sowie, auf der Grundlage der erlangten Prüfungsnachweise, ob eine wesentliche Unsicherheit im Zusammenhang mit Ereignissen oder Gegebenheiten besteht, die bedeutsame Zweifel an der Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit aufwerfen können. Falls wir zu dem Schluss kommen, dass eine wesentliche Unsicherheit besteht, sind wir verpflichtet, im Bestätigungsvermerk auf die dazugehörigen Angaben im Jahresabschluss und im Lagebericht aufmerksam zu machen oder, falls diese Angaben unangemessen sind, unser jeweiliges Prüfungsurteil zu modifizieren. Wir ziehen unsere Schlussfolgerungen auf der Grundlage der bis zum Datum unseres Bestätigungsvermerks erlangten Prüfungsnachweise. Zukünftige Ereignisse oder Gegebenheiten können jedoch dazu führen, dass die Gesellschaft ihre Unternehmenstätigkeit nicht mehr fortführen kann.
―	beurteilen wir die Gesamtdarstellung, den Aufbau und den Inhalt des Jahresabschlusses einschließlich der Angaben sowie ob der Jahresabschluss die zugrunde liegenden Geschäftsvorfälle und Ereignisse so darstellt, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt.
―	beurteilen wir den Einklang des Lageberichts mit dem Jahresabschluss, seine Gesetzesentsprechung und das von ihm vermittelte Bild von der Lage des Unternehmens.
―	führen wir Prüfungshandlungen zu den von den gesetzlichen Vertretern dargestellten zukunftsorientierten Angaben im Lagebericht durch. Auf Basis ausreichender geeigneter Prüfungsnachweise vollziehen wir dabei insbesondere die den zukunftsorientierten Angaben von den gesetzlichen Vertretern zugrunde gelegten bedeutsamen Annahmen nach und beurteilen die sachgerechte Ableitung der zukunftsorientierten Angaben aus diesen Annahmen. Ein eigenständiges Prüfungsurteil zu den zukunftsorientierten Angaben sowie zu den zugrunde liegenden Annahmen geben wir nicht ab. Es besteht ein erhebliches unvermeidbares Risiko, dass künftige Ereignisse wesentlich von den zukunftsorientierten Angaben

NIFCO KTW GmbH

Weißenburg

Konzernabschluss zum Geschäftsjahr vom 01.01.2017 bis zum 31.12.2017

Konzernlagebericht für das Geschäftsjahr vom 1. Januar 2017 bis 31. Dezember 2017

Konzernbilanz zum 31. Dezember 2017

Konzern-Gewinn- und Verlustrechnung für das Geschäftsjahr vom 1. Januar 2017 bis 31. Dezember 2017

Konzernkapitalflussrechnung 2017

Konzerneigenkapitalspiegel zum 31. Dezember 2017

Konzernanhang für das Geschäftsjahr vom 1. Januar 2017 bis 31. Dezember 2017

Erläuterungen zur Konzernbilanz zum 31. Dezember 2017

NIFCO KTW GmbH

Entwicklung des Anlagevermögens

Bestätigungsvermerk des Abschlussprüfers

NIFCO KTW GmbH

Weißenburg in Bayern

Jahresabschluss zum 31. Dezember 2016 und Lagebericht

Lagebericht für das Geschäftsjahr vom 01. Januar 2016 bis 31. Dezember 2016

Bilanz zum 31. Dezember 2016

Gewinn- und Verlustrechnung für die Zeit vom 1. Januar 2016 bis 31. Dezember 2016

Anhang für das Geschäftsjahr vom 1. Januar 2016 bis 31. Dezember 2016

Erläuterungen zur Bilanz zum 31. Dezember 2016 Entwicklung des Anlagevermögens

Erläuterungen zur Bilanz zum 31. Dezember 2016

Bestätigungsvermerk des Abschlussprüfers

Feststellung des Jahresabschlusses

NIFCO Germany GmbH

Weißenburg

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.04.2022 bis zum 31.03.2023

Nifco Inc.

Kanagawa/Japan

Table of Contents

Independent Auditor's Report

NIFCO Germany GmbH

Weißenburg

Jahresabschluss mit Bericht zur Gleichstellung und Entgeltgleichheit nach EntgTranspG als Anlage des Lageberichts zum Geschäftsjahr vom 01.01.2022 bis zum 31.12.2022

Lagebericht für das Geschäftsjahr 2022

Bilanz zum 31. Dezember 2022

Gewinn- und Verlustrechnung für die Zeit vom 1. Januar bis 31. Dezember 2022

Anhang für das Geschäftsjahr 2022

Erläuterungen zur Bilanz zum 31. Dezember 2022

Entwicklung des Anlagevermögens

Bericht zur Gleichstellung und zur Entgeltgleichheit

Bestätigungsvermerk des unabhängigen Abschlussprüfers

Feststellung des Jahresabschlusses

NIFCO Germany GmbH

Weißenburg

Jahresabschluss zum Geschäftsjahr vom 01.01.2021 bis zum 31.12.2021

Lagebericht für das Geschäftsjahr 2021

Bilanz zum 31. Dezember 2021

Gewinn- und Verlustrechnung für die Zeit vom 1. Januar bis 31. Dezember 2021

Anhang für das Geschäftsjahr 2021

Erläuterungen zur Bilanz zum 31. Dezember 2021

Entwicklung des Anlagevermögens

Erläuterungen zur Bilanz zum 31. Dezember 2021

Aktive latente Steuern

Bestätigungsvermerk des unabhängigen Abschlussprüfers

KTX GmbH