Seiwa Holdings Co.,ltd. · TSE:523A

Seiwa Holdings Co.,ltd — FY2026 Earnings Presentation

45 slides from Seiwa Holdings Co.,ltd's earnings presentation, Jul 15, 2026

Slide 1: Financial Results Presentation Fiscal Year Ended May 2026
SEIWA HOLDINGS Co., Ltd. Financial Results Presentation Fiscal Year Ended May 2026 Stock Code: 523A | TSE Growth Market
Slide 4: What is SEIWA HOLDINGS?
What is SEIWA HOLDINGS? We are a business succession platform in manufacturing industries, that continually acquires SMEs lacking successors and drives value creation through our unique framework Copyright © SEIWA HOLDINGS 4
Slide 5: Overview Diagram of SEIWA Platform
Overview Diagram of SEIWA Platform The platform consolidates functions SMEs can’t maintain independently to support operations, and will be strengthened by integrating manufacturing management capabilities. SME manufacturers facing succession challenges Utilize management resources Strategic SME MAN
Slide 6: Overview of Our Key Product Lines
Overview of Our Key Product Lines Revenue breakdown of group companies based on the Japan Standard Industrial Classification (JSIC) 37% * 14% 13% 1. Metal Products 2. Transport Equipment Mfg. 3. Industrial Machinery Primarily cation painting and electroplating Ship generators and liquid level gauges
Slide 7: Why we pursue this business?
Why we pursue this business? I worked part-time at a small factory run by my father. As I worked with craftsmen who were involved in manufacturing, I was impressed with how “they were supporting Japan” and decided to join the company. There were many challenges: we had only one client, were in exces
Slide 8: Corporate Highlights
Corporate Highlights １ Favorable Business Environment ■ The average age of business owners is 63.6 years (FY2024), indicating a long-term aging issue ■ Against 62,695 business closures/liquidations, only 883 were succeeded, indicating a severe shortage of successors ２ Expanding Competitive Advantage
Slide 10: FY2026/5 Consolidated Results Highlights
FY2026/5 Consolidated Results Highlights Adjusted Operating Profit, Adjusted EBITDA and Profit for the year all exceeded budget FY2026/5 FY2025/5 FY2026/5 YoY change Forecast (Millions of yen) Drivers of variance vs. forecast (Actual) (Actual) (% change) (Achievement rate) +241 7,779 Semiconductor-r
Slide 11: Consolidated Performance Trends
Consolidated Performance Trends Limited M&A due to IPO preparation, with a focus on value creation driving record-high profits Adjusted Consolidated Adjusted Consolidated Consolidated Revenue Consolidated Net Profit Operating Profit *1 EBITDA *2 (million JPY) (million JPY) (million JPY) (million JPY
Slide 12: Pre-Group Integration vs FY26 May
Pre-Group Integration vs FY26 May Net Sales (million JPY) Operating Profit (million JPY) Approx. 900 1,184 9,000 28% 8,957 800 Approx. 8,000 7,000 Increase 6,991 700 76% 600 Increase 6,000 Total Total 500 672 5,000 FY26 FY26 4,000 Each company’s May 400 May *2 *2 fiscal results before 300 Each compa
Slide 13: Track Record of Performance Improvement After Joining the Group
Track Record of Performance Improvement After Joining the Group (Excerpt) Following business succession, the roll-out of the Seiwa Platform has driven profitability improvements across a majority of Group companies Pre-succession(1) FY May 2026(1)(2) Succession Company Support provided by the Seiwa
Slide 14: Examples of Performance Uplift after Joining the Group
Examples of Performance Uplift after Joining the Group [Case 1] Significant Uplift in Operating Profit at Tama Kako after Joining the Group Operating (Unit: JPY million) Profit(1) FY Sep 2021 FY May 2026 145 Approx. +458% 26 Operating Margin Operating Margin 5.4% 16.1% Key Initiatives to Drive Profi
Slide 15: Case Study of Post-Acquisition Performance Improvement
Case Study of Post-Acquisition Performance Improvement 【Case Study 2】Rapid Profitability Improvement at Fuji Metal Plating Industrial Co., Ltd. Following Group Integration Operating Profit(1) (JPY millions) FY May 2025(2) Approx. 9% FY May 2026 increase 232 213 Operating Margin Operating Margin 26.6
Slide 16: Driving Profitability with a Disciplined Management Process
Driving Profitability with a Disciplined Management Process Enhancing Profit Margins through Continuous Value Creation Consolidated figures for SEIWA HOLDINGS Group Manufacturing Index FY2024 FY2025 FY2026 Avg*1 Gross Profit Rate 19.5％ 29.9％ 30.4％ 35.6％ Operating Profit Rate 5.2％ 12.0％ 10.2％*2 16.4％
Slide 17: Revision to Non-GAAP Performance Measures
Revision to Non-GAAP Performance Measures ■ To properly reflect M&A-related costs in the financial statements, we are revising the definitions of our adjusted performance measures. ■ One-time gains and losses, such as gains on bargain purchases, will be added to the adjustment items so that the unde
Slide 18: Comparison with Previous Disclosure
Comparison with Previous Disclosure FY2026/5 actuals are also disclosed under the new definitions. FY2026/5 FY2026/5 (Unit: JPY M) Change Notes (Prior disclosure) (New disclosure) Revenue 8,011 8,011 - - Operating profit 1,502 1,502 - - Amortization of intangible assets arising from business combina
Slide 19: Balance Sheet Improvement Supporting Continuous M&A
Balance Sheet Improvement Supporting Continuous M&A IPO proceeds significantly strengthened our balance sheet, providing up to JPY 8,590 million of additional capacity for M&A investments. (Unit: JPY M) FY2025/5 FY2026/5 Change Current assets 5,006 8,207 +3,201 Cash and cash equivalents (1) 2,903 6,
Slide 21: FY2027 Consolidated Earnings Forecast
FY2027 Consolidated Earnings Forecast 20%+ YoY growth across all key metrics, excluding undisclosed M&A FY2026/5 FY2027/5 Change (Unit: JPY M) (Actual) (Forecast) Revenue 8,011 9,800 1,788 (+22.3%) Adjusted operating profit (1) 1,430 1,800 369 (+25.8%) Adjusted EBITDA (1) 1,744 2,100 355 (+20.4%) Ad
Slide 23: History of Business Succession
History of Business Succession As a business-succession platform focused on the manufacturing sector, we have completed 18 M&A transactions to date Established Seiwa Kogyo Ltd. Dec 1995 Feb 2022 Kaken Genex Co., Ltd. (the Company's predecessor) Jun 2019 Toei Coating Co., Ltd. Mar 2022 JOB Co., Ltd.
Slide 24: M&A Investment Criteria
M&A Investment Criteria With 8.59 Billion JPY investment capacity, near-term M&A can be funded by available cash and loan Fundamental Investment Policy ■ Conduct EV/EBITDA valuations, primarily targeting companies with multiples of 5x or less Criteria ■ Large number of investment targets, mainly com
Slide 25: Our Positioning in M&A
Our Positioning in M&A Differentiated long-term ownership model without an exit assumption Mid- to Long-term Business Succession Investable Companies Synergistic Growth Outlook Know-how SEIWA 〇〇〇〇 HOLDINGS Many niche SMEs capable of Mid- to long-term Proprietary platform Extensive experience with
Slide 26: Our Competitive Advantages in M&A
Our Competitive Advantages in M&A Our strategy focuses on continuously executing synergy-driven acquisitions in specialized manufacturing niches, giving us a competitive advantage in both deal sourcing and post-merger integration (PMI). Why sellers choose us as their M&A partner Why our PMI success
Slide 27: Investment criteria for M&A targets
Investment criteria for M&A targets We actively pursue acquisitions in markets with strong potential for a roll-up strategy, based on the following investment criteria. Basic investment policy ■ Target companies are generally valued at an EV/EBITDA multiple of approximately 5x or below. Financial cr
Slide 28: Ongoing M&A Case ①: Mitaka Kinzoku Kogyo
Ongoing M&A Case ①: Mitaka Kinzoku Kogyo For further details, please refer to the following timely disclosure. https://ssl4.eir-parts.net/doc/523A/tdnet/2830393/00.pdf The acquired business will operate as Fuji Mekki Kogyosho's Ama Plant, strengthening production capacity to meet growing demand from
Slide 29: Ongoing M&A Case ②: Oba Toso Kogyosho
Ongoing M&A Case ②: Oba Toso Kogyosho For further details, please refer to the following timely disclosure. https://ssl4.eir-parts.net/doc/523A/tdnet/2839962/00.pdf Acquisition of Oba Toso Kogyosho, a specialist in metal coating and assembly with comprehensive in-house coating capabilities, includin
Slide 31: Succession Issues: Aging Management & Lack of Successors
Succession Issues: Aging Management & Lack of Successors The number of companies without successors continues to rise, while businesses capable of absorbing them remain insufficient Number of business closures or dissolutions Number of successful M&A deals and average age of business owners* to comp
Slide 32: Target Market Strategy
Target Market Strategy TAM of 132 Trillion JPY for SMEs in the manufacturing industry considering business succession SME Financial Profile) *1 Our Target Market Avg. sales per SME (Mfg.) TAM Approx. 393 M JPY 132 T JPY Avg. Ordinary Profit SAM Total Addressable Market per SME (Mfg.) 7.7 T JPY Appro
Slide 33: Reasons to Focus on Manufacturing Industries
Reasons to Focus on Manufacturing Industries Strong profits, minimal competition, and further growth opportunities through innovation Limited open innovation*3 Profits per company High entry barriers make it top all industries initiatives challenging for new competitors vs. large enterprises Ordinar
Slide 34: Company Overview List of Our Group Companies
Company Overview List of Our Group Companies Prefecture Company Name Business Description Company Name SEIWA HOLDINGS Co., Ltd. Tokyo Tama Kako Co., Ltd. Cationic Electrodeposition Coating Manufacturing of Special Electric Wires and Saitama Sanyo Denko Co., Ltd. Representative Cables Yuta Nomiyama D
Slide 35: Management Team
Management Team Expertise in SME operations, production management, and business administration Yuta Nomiyama Representative Director Michinari Ikawa Director, VP Professional Background: SEIWA Welding / SEIWA HOLDINGS Professional Background: Inherited struggling company and orchestrated various re
Slide 36: Schematic Diagram of SEIWA Platform
Schematic Diagram of SEIWA Platform Consolidate functions difficult for SMEs to manage independently, and provide business support SEIWA Platform provides functions that are difficult Drives low-cost operations and business growth by for individual SME manufacturers consolidating management and stra
Slide 37: Core Strategy to Enhance Profitability
Core Strategy to Enhance Profitability SALES: Restructure revenue model PROCUREMENT: Enhance direct cost ratio Develop products and business models with strong pricing Aim to procure appropriate quality at the lowest prices power to secure fair profits ■ Integrate niche, high-pricing-power companies
Slide 38: Examples of Revenue Growth
Examples of Revenue Growth Occupancy of Cation ED in Kanto Area Boost Profits by Optimizing Procurement Ongoing PMI Projects Company C Gunma Company A Saitama Tokyo Company B Kanagawa Group Companies Customers Competitors ※Image of robotization Highlights Highlights Highlights • Built competitive ad
Slide 39: Business Succession Procedure
Business Succession Procedure Use business succession checklist to drive deals around the following key items M＆A Due Diligence PMI ■ Target ”manufacturing" and ■ Assess roles of owner and key ■ Implement safety measures and related businesses personnel, and identify future create safer working mana
Slide 40: Building a Scalable Structure for Long-Term Growth
Building a Scalable Structure for Long-Term Growth System to Sustain High-Quality Management Group Management Structure (Operations) Corporate Management System ソーシング体制 Management Highlights and Future Leadership Pipeline Strengthen management structure by expanding roles based on ability, irrespect
Slide 41: Original HR Optimization System
Original HR Optimization System Improved PMI Success Rate Via Selection Table ■ Owner Type Matrix ■Key Personnel Matrix ■ Successor Skills Table High Tolerance to Change Manu- facturing Low High Owner Owner Loyalty Loyalty Hiring of Suitable Management Low Tolerance to Change Key Point: Optimized sy
Slide 42: Exit Criteria
Exit Criteria Exit Triggers 1 2 3 4 5 Operating loss of Losses in 2 OP loss in 2 out of High likelihood of Changes in key 100 M JPY or more, consecutive years or 3 years, deteriorating business markets with limited prospect for losses in 2 of last 3 after CaPex environment recovery years Note: The s
Slide 43: Business Risks and Corresponding Response Policies
Business Risks and Corresponding Response Policies Following Items are Listed as Risk Factors for Our Managing Group Management Risk Occurrence Impact Company’s Response Policies Failure to meet post-succession ■ Utilize checklists and know-how during investment 1 plan Low Large ■ Address unexpected
Slide 44: Vision of Future Growth
Vision of Future Growth Three Essential Pillars 1 Enhance profitability through disciplined management • Instill a management approach focused on profitability • Enhance competitiveness through standardized, group-wide KPIs 2 M&A of blue-chip companies 3 • Establish an in-house sourcing team Evoluti
Slide 45: Disclaimer
Disclaimer ◆ Purpose of this presentation This presentation contains forward-looking statements based on management's current expectations and assumptions. These statements involve known and unknown risks and uncertainties, and actual results may differ materially due to various factors, including e

SEIWA HOLDINGS — FY2026 Earnings Presentation on 6ix

Seiwa Holdings Co.,ltd — FY2026 Earnings Presentation

Slide 1: Financial Results Presentation Fiscal Year Ended May 2026

Slide 2: Table of Contents

Slide 3: 1. About Us

Slide 4: What is SEIWA HOLDINGS?

Slide 5: Overview Diagram of SEIWA Platform

Slide 6: Overview of Our Key Product Lines

Slide 7: Why we pursue this business?

Slide 8: Corporate Highlights

Slide 9: 2. Results for the Fiscal Year Ended May 2026

Slide 10: FY2026/5 Consolidated Results Highlights

Slide 11: Consolidated Performance Trends

Slide 12: Pre-Group Integration vs FY26 May

Slide 13: Track Record of Performance Improvement After Joining the Group

Slide 14: Examples of Performance Uplift after Joining the Group

Slide 15: Case Study of Post-Acquisition Performance Improvement

Slide 16: Driving Profitability with a Disciplined Management Process

Slide 17: Revision to Non-GAAP Performance Measures

Slide 18: Comparison with Previous Disclosure

Slide 19: Balance Sheet Improvement Supporting Continuous M&A

Slide 20: 3. Forecast for the Fiscal Year Ending May 2027

Slide 21: FY2027 Consolidated Earnings Forecast

Slide 22: 4. M&A

Slide 23: History of Business Succession

Slide 24: M&A Investment Criteria

Slide 25: Our Positioning in M&A

Slide 26: Our Competitive Advantages in M&A

Slide 27: Investment criteria for M&A targets

Slide 28: Ongoing M&A Case ①: Mitaka Kinzoku Kogyo

Slide 29: Ongoing M&A Case ②: Oba Toso Kogyosho

Slide 30: 5. Appendix

Slide 31: Succession Issues: Aging Management & Lack of Successors

Slide 32: Target Market Strategy

Slide 33: Reasons to Focus on Manufacturing Industries

Slide 34: Company Overview List of Our Group Companies

Slide 35: Management Team

Slide 36: Schematic Diagram of SEIWA Platform

Slide 37: Core Strategy to Enhance Profitability

Slide 38: Examples of Revenue Growth

Slide 39: Business Succession Procedure

Slide 40: Building a Scalable Structure for Long-Term Growth

Slide 41: Original HR Optimization System

Slide 42: Exit Criteria

Slide 43: Business Risks and Corresponding Response Policies

Slide 44: Vision of Future Growth

Slide 45: Disclaimer