Seiwa Holdings Co.,ltd. · TSE:523A

Seiwa Holdings Co.,ltd — Q1 FY2027/5 Earnings Presentation

42 slides from Seiwa Holdings Co.,ltd's earnings presentation, Oct 14, 2026

Slide 1: Financial Results Presentation First Quarter of Fiscal Year Ending May 2027
SEIWA HOLDINGS Co., Ltd. Financial Results Presentation First Quarter of Fiscal Year Ending May 2027 Stock Code: 523A | TSE Growth Market, NSE Next Market
Slide 2: Key Takeaways: 1Q FY2027/5 Results
Key Takeaways: 1Q FY2027/5 Results １ Results ■ 1Q revenue: JPY 2,100 million (+11.6% YoY); adjusted operating profit: JPY 330 million (+10.1% YoY) ■ Existing businesses grew revenue and profit organically, in line with plan; new M&A to contribute mainly from 2Q ■ Full-year forecast revised upward: r
Slide 3: Table of Contents
Table of 01. About Us Contents 02. Forecast Revision for FY2027/5 03. 1Q FY2027/5 Results 04. M&A Strategy 05. Appendix Copyright © SEIWA HOLDINGS 3
Slide 5: SEIWA HOLDINGS' Business Model
SEIWA HOLDINGS' Business Model A serial acquirer solving manufacturing succession issues through its own platform STEP 01 STEP 02 STEP 03 Acquire SME manufacturers Support growth through Reinvest generated cash flow lacking successors via M&A the SEIWA Platform into the next M&A Current Owner SEIWA
Slide 6: 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: Revision of FY2027/5 Full-Year Forecast
Revision of FY2027/5 Full-Year Forecast Existing businesses on plan; forecast raised for Daiei Parker, Hoan Doro Kikaku and Eishin Denki Previous Forecast Revised Forecast (B) Change (B-A) (Reference) FY2026/5 (Unit: JPY M) (A) (YoY) (% change) (Actual) (Jul 15, 2026) Revenue 9,800 11,000 +1,200 8,0
Slide 10: 1Q FY2027/5 Consolidated Results Highlights
1Q FY2027/5 Consolidated Results Highlights Adjusted measures grew steadily YoY; existing businesses in line with plan Change 1Q FY2026/5 1Q FY2027/5 Initial Forecast Revised Drivers of YoY Change (% change) (Unit: JPY M) (Reference)(2) (Actual) (Progress rate)(3) Forecast 9,800 Growth at existing c
Slide 11: Reconciliation of Adjusted Measures (1Q)
Reconciliation of Adjusted Measures (1Q) Adjusted operating profit excluding one-time items: JPY 330 million (+30 YoY) FY2026/5 FY2027/5 (Unit: JPY M) Change 1Q (Reference)(2) 1Q Actual Operating profit 409 151 ▲257 Amortization of intangible assets from M&A +29 +30 +0 M&A acquisition-related costs
Slide 12: Consolidated Performance Trends
Consolidated Performance Trends Growth through M&A and organic growth; record high planned for FY2027/5 Revenue Adjusted operating profit(1) Adjusted EBITDA(2) Adjusted profit for the period(3) (million JPY) (million JPY) (million JPY) (million JPY) Forecast Forecast Forecast Forecast 11,000 2,350 1
Slide 13: Balance Sheet Supporting Continuous M&A
Balance Sheet Supporting Continuous M&A Cash-funded M&A; Net Debt/EBITDA 1.4x; up to JPY 6,115M of capacity FY2027/5 (Unit: JPY M) FY2026/5 Change Remarks 1Q Current assets 8,207 7,253 ▲954 Decrease in cash and deposits Cash and cash equivalents(1) 6,170 3,774 ▲2,395 Payment of M&A consideration Non
Slide 15: History of Business Succession
History of Business Succession Manufacturing-focused business succession platform: 21 M&A transactions to date Dec 1995 Established Seiwa Welding Ltd. (the Company's predecessor) Feb 2022 Kaken Geneqs Co., Ltd. Jun 2019 Toei Coating Co., Ltd. Mar 2022 JOB Co., Ltd. Oct 2019 Kasuka Co., Ltd. Apr 2022
Slide 16: M&A Investment Criteria
M&A Investment Criteria Up to JPY 6,115M of capacity; near-term M&A fundable with cash and debt capacity Fundamental Investment Policy ■ Conduct EV/EBITDA valuations, primarily targeting companies with multiples of around 5x or less Criteria ■ Large number of investment targets, mainly companies wit
Slide 17: 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 18: 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 19: M&A Track Record in FY2027/5
M&A Track Record in FY2027/5 Five deals in growth niches: defense, semiconductors, disaster prevention & safety All five deals acquired at EV/EBITDA of 5x or less Target Structure Closing Date Business Key Rationale Business acquisition Mitaka Kinzoku Kogyo Expansion of production capacity ① (by Fuj
Slide 20: FY2027/5 M&A Case ①: Mitaka Kinzoku Kogyo
FY2027/5 M&A Case ①: Mitaka Kinzoku Kogyo Fuji Mekki Kogyosho (subsidiary) acquired the plating business of Mitaka Kinzoku Kogyo Added capacity strengthens production to meet semiconductor-related demand Acquirer: Fuji Mekki Kogyosho Rationale: Expansion of Production Capacity Company Fuji Mekki Kog
Slide 21: FY2027/5 M&A Case ②: Oba Toso Kogyosho
FY2027/5 M&A Case ②: Oba Toso Kogyosho Acquired Oba Toso Kogyosho, a metal-product coating and assembly specialist with integrated in-house coating capabilities, incl. cationic electrodeposition Company Overview Business & Market Environment Synergies with the Group Oba Toso Kogyosho, which coats an
Slide 22: FY2027/5 M&A Case ③: Daiei Parker
FY2027/5 M&A Case ③: Daiei Parker Acquired Daiei Parker, a specialist in chemical conversion coating of aluminum alloys, mainly for defense-related applications, which are important for economic security Company Overview Business & Market Environment Synergies with the Group Sharing of production kn
Slide 23: FY2027/5 M&A Case ④: Hoan Doro Kikaku
FY2027/5 M&A Case ④: Hoan Doro Kikaku Acquired Hoan Doro Kikaku, holder of exclusive domestic sales rights for "Postflex" delineators, which broadly covers the traffic safety domain Company Overview Business & Market Environment Synergies with the Group Seiwa Welding Co., Ltd., our founding business
Slide 24: FY2027/5 M&A Case ⑤: Eishin Denki
FY2027/5 M&A Case ⑤: Eishin Denki Acquired Eishin Denki, a provider of specialty wire harness processing for equipment and measuring instruments, including semiconductor manufacturing equipment Company Overview Business & Market Environment Synergies with the Group Processing wires manufactured by S
Slide 26: Succession Issues: Aging Owners & Lack of Successors
Succession Issues: Aging Owners & Lack of Successors Business closures and owner age continue to rise, while businesses capable of absorbing them remain far short Closures/dissolutions and average age of owners *1 Closures/dissolutions vs. succession M&A deals (Cases) (Age) # of companies Number of
Slide 27: 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 28: 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 29: Profit Margins vs. Manufacturing Industry Average
Profit Margins vs. Manufacturing Industry Average Gross and operating profit margins exceed the manufacturing industry average Consolidated figures for SEIWA HOLDINGS Group Manufacturing Index FY2024/5 FY2025/5 FY2026/5 Avg(1) Gross Profit Margin 19.5% 29.9% 30.4% 35.6% Operating Profit Margin 5.2%
Slide 30: 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 31: Company Overview List of Our Group Companies
Company Overview List of Our Group Companies Location Company Name Business Company SEIWA HOLDINGS Co., Ltd. Tokyo Tama Kako Co., Ltd. Cationic Electrodeposition Coating Manufacturing and Sales of Road Safety Hoan Doro Kikaku, Incorporated Representative Yuta Nomiyama Kanagawa Products Daiei Parker
Slide 32: Management Team
Management Team Expertise in SME operations, production management, and business administration Yusuke Miyake Director, Full-time Audit Committee Yuta Nomiyama Representative Director Background: KPMG AZSA LLC Background: SEIWA Welding / SEIWA HOLDINGS Provided accounting and audit services for publ
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 — Q1 FY2027/5 Earnings Presentation on 6ix

Seiwa Holdings Co.,ltd — Q1 FY2027/5 Earnings Presentation

Slide 1: Financial Results Presentation First Quarter of Fiscal Year Ending May 2027

Slide 2: Key Takeaways: 1Q FY2027/5 Results

Slide 3: Table of Contents

Slide 4: 01. About Us

Slide 5: SEIWA HOLDINGS' Business Model

Slide 6: Why we pursue this business?

Slide 7: 02. Revision of Forecast for the Fiscal Year Ending May 2027

Slide 8: Revision of FY2027/5 Full-Year Forecast

Slide 9: 03. First Quarter Results for the Fiscal Year Ending May 2027

Slide 10: 1Q FY2027/5 Consolidated Results Highlights

Slide 11: Reconciliation of Adjusted Measures (1Q)

Slide 12: Consolidated Performance Trends

Slide 13: Balance Sheet Supporting Continuous M&A

Slide 14: 04. M&A Strategy

Slide 15: History of Business Succession

Slide 16: M&A Investment Criteria

Slide 17: Our Positioning in M&A

Slide 18: Our Competitive Advantages in M&A

Slide 19: M&A Track Record in FY2027/5

Slide 20: FY2027/5 M&A Case ①: Mitaka Kinzoku Kogyo

Slide 21: FY2027/5 M&A Case ②: Oba Toso Kogyosho

Slide 22: FY2027/5 M&A Case ③: Daiei Parker

Slide 23: FY2027/5 M&A Case ④: Hoan Doro Kikaku

Slide 24: FY2027/5 M&A Case ⑤: Eishin Denki

Slide 25: 05. Appendix

Slide 26: Succession Issues: Aging Owners & Lack of Successors

Slide 27: Target Market Strategy

Slide 28: Reasons to Focus on Manufacturing Industries

Slide 29: Profit Margins vs. Manufacturing Industry Average

Slide 30: Overview of Our Key Product Lines

Slide 31: Company Overview List of Our Group Companies

Slide 32: Management Team

Slide 33: Schematic Diagram of SEIWA Platform

Slide 34: Core Strategy to Enhance Profitability

Slide 35: Examples of Revenue Growth

Slide 36: Business Succession Procedure

Slide 37: Building a Scalable Structure for Long-Term Growth

Slide 38: Original HR Optimization System

Slide 39: Exit Criteria

Slide 40: Business Risks and Corresponding Response Policies

Slide 41: Vision of Future Growth

Slide 42: Disclaimer