Nihon Dempa Kogyo Co., Ltd. · TSE:6779

Nihon Dempa Kogyo — FY2024 Earnings Presentation

39 slides from Nihon Dempa Kogyo's earnings presentation, May 23, 2025

  1. Slide 1: Full-Year Results for Fiscal 2024 (Ended March 31, 2025)

    Full-Year Results for Fiscal 2024 (Ended March 31, 2025) May 23, 2025 Nihon Dempa Kogyo Co., Ltd. Note: Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about ou

  2. Slide 2: Contents

    Contents 1. Results For FY2024 (Ended March 31, 2025) 2. Financial Forecast for FY2025 (Ending March 31, 2026) 3. New Medium-Term Management Plan FY2025 (Ending March 2026) to FY2027 (Ending March 2028) Presented by Hiromi Katoh, Representative Director and President Copyright © 2025 Nihon Dempa Kog

  3. Slide 3: Summary of Financial Results

    1. Results For FY2024 (Ended March 31, 2025) Summary of Financial Results ◼ Sales and operating income for full-year of FY2024 increased YoY. ◼ Due to the recording of ¥458 million in Impairment loss on equity method investments, income before income tax and below declined YoY. ① ② ②‐① (Million yen)

  4. Slide 4: Net Sales by Application (YoY)

    1. Results For FY2024 (Ended March 31, 2025) Net Sales by Application (YoY) ◼ Net sales increased YoY mainly for automotive electronics and mobile communications. Net Sales Factors of increase/decrease (Billion yen) FY2023 FY2024 YoY Automotive 28.3 29.2 +0.9 Sales increased due to growing demand fo

  5. Slide 5: Operating Income: Analysis of Changes from FY2023

    1. Results For FY2024 (Ended March 31, 2025) Operating Income: Analysis of Changes from FY2023 ◼ Operating income increased due to the increase in net sales and yen depreciation, despite the heavy burden of growth investments. +¥0.27billion Investment (Billion yen) in human +0.64 resources Investmen

  6. Slide 6: Financial Results (Quarterly)

    1. Results For FY2024 (Ended March 31, 2025) Financial Results (Quarterly) ◼ Net sales in 4Q FY2024 remain flat QoQ. ◼ Operating income in 4Q FY2024 declined QoQ due to a reduction in inventory. Net Sales Operating Income (excluding temporary factors) (Billion yen) (Billion yen/%) Operating Income (

  7. Slide 7: Net Sales (by Main Application)

    1. Results For FY2024 (Ended March 31, 2025) Net Sales (by Main Application) ◼ Net sales for automotive electronics have remained roughly flat at around 7.3 billion yen per quarter since Q4 FY2023. ◼ Net sales for mobile communications peaked in Q2 FY2024. ◼ Net sales for industrial equipment increa

  8. Slide 8: Financial Position

    1. Results For FY2024 (Ended March 31, 2025) Financial Position ◼ Refinanced 25 billion yen in interest-bearing debt in March 2025; shareholders‘ equity ratio stood at 40.8% at the end of March. Received ¥5.0 billion Raised approx. ¥4.0 billion by the Refinanced 25 billion yen investment through pub

  9. Slide 9: Contents

    Contents 1. Results For FY2024 (Ended March 31, 2025) 2. Financial Forecast for FY2025 (Ending March 31, 2026) 3. New Medium-Term Management Plan FY2025 (Ending March 2026)to FY2027 (Ending March 2028) Copyright © 2025 Nihon Dempa Kogyo All Rights Reserved 9

  10. Slide 10: Financial Forecast

    2. Financial Forecast for FY2025 (Ending March 31, 2026) Financial Forecast ◼ Sales remained flat YoY, considering yen appreciation and additional U.S. tariffs. ◼ Operating income is expected to decline YoY due to increased cost from upfront investments such as R&D and smart factory investments aime

  11. Slide 11: Net Sales by Application (Forecast)

    2. Financial Forecast for FY2025 (Ending March 31, 2026) Net Sales by Application (Forecast) ◼ Net sales for automotive electronics are expected to remain flat YoY due to the U.S. tariff policies, while net sales for mobile communications are expected to decline due to yen appreciation. ◼ However, t

  12. Slide 12: Operating Income: Analysis of Changes from FY2024

    2. Financial Forecast for FY2025 (Ending March 31, 2026) Operating Income: Analysis of Changes from FY2024 ◼ Operating income are expected to decline YoY, considering the burden of upfront investments for long-term growth, yen appreciation, additional U.S. tariffs, and increased competition in the a

  13. Slide 13: Capital Investment

    2. Financial Forecast for FY2025 (Ending March 31, 2026) Capital Investment ◼ Increased investment focused on smart factories and new businesses aimed at a significant boost in productivity. (Billion yen) 8.0 7.4 7.0 1.0 New business 6.0 1.8 Smart factory investment 5.0 4.61 0.9 0.7 R&D investment 4

  14. Slide 14: Contents

    Contents 1. Results For FY2024 (Ended March 31, 2025) 2. Financial Forecast for FY2025 (Ending March 31, 2026) 3. New Medium-Term Management Plan FY2025 (Ending March 2026)to FY2027 (Ending March 2028) Copyright © 2025 Nihon Dempa Kogyo All Rights Reserved 14

  15. Slide 15: New Medium-Term Management Plan Table of Contents

    New Medium-Term Management Plan Table of Contents 1. Positioning of the New Medium-Term Management Plan (the Third Medium-Term Management Plan) 2. Business Environment Assessment 3. Overview of the New Medium-Term Management Plan 1) Four Key Initiatives 2) Management Targets 3) Application-Specific

  16. Slide 16: Positioning of the New Medium-Term Management Plan

    1. Positioning of the New Medium-Term Management Plan (the Third Medium-Term Management Plan) Positioning of the New Medium-Term Management Plan (the Third Medium- Term Management Plan) New Medium-Term Management Plan FY2008- FY2020-2021 FY2028- FY2022-2024 FY2025-2027 2030 2019 (Achieved one year a

  17. Slide 17: Achievements of the Previous Medium-Term Management Plan

    1. Positioning of the New Medium-Term Management Plan (the Third Medium-Term Management Plan) Achievements of the Previous Medium-Term Management Plan (Second Medium-Term Management Plan) ◼ Promoting the building of a management foundation for sustainable growth ◼ Building a Sound Financial Structur

  18. Slide 18: Previous Medium-Term Management Plan (FY2022-2024) Management Targets

    1. Positioning of the New Medium-Term Management Plan (the Third Medium-Term Management Plan) Previous Medium-Term Management Plan (FY2022-2024) Management Targets ◼ Significant progress in financial soundness. ◼ Sales and profitability targets not achieved. (Gross profit margin improvement < Increa

  19. Slide 19: Overview of the New Medium-Term Management Plan

    1. Positioning of the New Medium-Term Management Plan (the Third Medium-Term Management Plan) Overview of the New Medium-Term Management Plan (the Third Medium-Term Management Plan) ◼ Building a management foundation focused on high profitability and capital efficiency that is less susceptible to ec

  20. Slide 20: Business Environment Assessment

    2. Business Environment Assessment Business Environment Assessment ◼ Automotive Market ✓ The number of crystal devices per vehicle is expected to continue increasing ✓ Increasing presence of Chinese automakers ◼ 5G-Related Market ✓ Maturation of the 5G smartphone market, entry of MEMS devices ✓ Mode

  21. Slide 21: Four Key Initiatives

    3. Overview of the New Medium-Term Management Plan Four Key Initiatives ◼ Building a management foundation focused on high profitability and capital efficiency ◼ Development of high-value-added products and creation of new businesses ✓ Strengthening development of high-purity raw crystals and photol

  22. Slide 22: Four Key Initiatives: Development of High-Value-Added Products and New Businesses

    3. Overview of the New Medium-Term Management Plan Four Key Initiatives: Development of High-Value-Added Products and Creation of New Businesses ◼ Development of High-Value-Added Products and Creation of New Businesses. Application of our mobile communications technology for V2X, which is essential

  23. Slide 23: Four Key Initiatives: Dramatic Improvement in Productivity

    3. Overview of the New Medium-Term Management Plan Four Key Initiatives: Dramatic Improvement in Productivity Reform drastically labor productivity through the introduction of next-generation lines and the implementation of new systems through DX →A threefold increase in factory productivity in fisc

  24. Slide 24: Four Key Initiatives: Efficient Capital Allocation

    3. Overview of the New Medium-Term Management Plan Four Key Initiatives: Efficient Capital Allocation Five Pillars + One Plan We aim to establish our position as a solution provider by maintaining balanced operations across our five core business pillars and the new '+One’ business, while continuing

  25. Slide 25: Four Key Initiatives: Strengthening Business Foundation (ESG)

    3. Overview of the New Medium-Term Management Plan Four Key Initiatives: Strengthening Business Foundation (ESG) ◼ Human Capital ✓ Enhancement of human resource development programs, realization of competitive remuneration systems ✓ Fostering a corporate culture with open communication that embraces

  26. Slide 26: New Medium-Term Management Plan (FY2025-2027) Management Targets

    3. Overview of the New Medium-Term Management Plan New Medium-Term Management Plan (FY2025-2027) Management Targets ◼ The effects of large-scale upfront investments in the new medium-term management plan will appear more clearly in the next medium-term management plan. ⇒Aiming for an operating incom

  27. Slide 27: Application-Specific Strategy: Automotive

    3. Overview of the New Medium-Term Management Plan Application-Specific Strategy: Automotive ◼ The number of crystal devices per vehicle is expected to continue increasing (due to increased ADAS installations). ◼ Building a structure that can ensure customer service quality and profitability with lo

  28. Slide 28: Application-Specific Strategy: Automotive

    3. Overview of the New Medium-Term Management Plan Application-Specific Strategy: Automotive ◼ Strong potential for crystal devices in ADAS, V2X, GPS, and SDV. ◼ Our technologies for mobile communication applied to V2X and GPS. Satellites GPS ADAS Cloud・ （Camara/Radar/LiDER） Nanosecond-level Datacen

  29. Slide 29: Application-Specific Strategy: Mobile Communications/IoT

    3. Overview of the New Medium-Term Management Plan Application-Specific Strategy: Mobile Communications/IoT ◼ Introducing new products for maturing 5G smartphone market to maintain high profitability. Mobile Communications Market Sales Trend New Products for Mobile Communications (¥Billion) ■ Crysta

  30. Slide 30: Application-Specific Strategy: Industrial Equipment

    3. Overview of the New Medium-Term Management Plan Application-Specific Strategy: Industrial Equipment ◼ Expand sales of high-profit SPXO (crystal oscillators) for optical transceivers and AI servers. ◼ Expanding sales of competitive new products for 5G base stations to improve profitability. Indust

  31. Slide 31: Application-Specific Strategy: Industrial Equipment (AI Server)

    3. Overview of the New Medium-Term Management Plan Application-Specific Strategy: Industrial Equipment (AI Server) ◼ Crystal devices used across various components inside AI servers. AI Sever Rack A AI Sever Rack B Optical ■Compute tray transceiver ・CPU/GPU Compute tray Compute tray ・NIC（Network Int

  32. Slide 32: Application-Specific Strategy: Special Equipment Market

    3. Overview of the New Medium-Term Management Plan Application-Specific Strategy: Special Equipment Market ◼ Defense and space-related demand expected to increase as geopolitical risk preparedness becomes more active. ⇒Planning to strengthen business by establishing two new development bases in Japa

  33. Slide 33: Application-Specific Strategy: Optical Products

    3. Overview of the New Medium-Term Management Plan Application-Specific Strategy: Optical Products ◼ Strengthening semiconductor manufacturing equipment business as a new growth area. ⇒Increasing needs for optical products with strong laser resistance as laser power increases. Optical Products* Sale

  34. Slide 34: Business Portfolio Improvement (by Application)

    3. Overview of the New Medium-Term Management Plan Business Portfolio Improvement (by Application) ◼ Portfolio improvement image from previous Medium-term Management Plan to new Medium-term Management Plan. High Mobile/IoT Special Equipment AI-related Profitability Automotive Optical ●Profitability

  35. Slide 35: Capital Investment

    3. Overview of the New Medium-Term Management Plan Capital Investment ◼ Capital investment in the new Medium-term Management Plan is upfront investment looking ahead to 2030 and beyond. →Planning to significantly increase investment in R&D, smart factories, and new businesses. (¥Billion) 25.0 ¥20.0

  36. Slide 36: Capital Allocation Policy

    3. Overview of the New Medium-Term Management Plan Capital Allocation Policy ◼ Shareholder returns premised on cumulative ¥20.0 billion in capital investment over three years and maintaining a sound financial base. FY2025-FY2027 Cumulative Cash New business: ¥2.0 billion Smart factory: ¥5.6 billion

  37. Slide 37: Management Approach Focused on Capital Cost and Stock Price

    3. Overview of the New Medium-Term Management Plan Management Approach Focused on Capital Cost and Stock Price ◼ Building a corporate foundation focused on high profitability and capital efficiency ✓ Development of high-value-added products and creation of new businesses ✓ Dramatic improvement in pr

  38. Slide 38: In Conclusion: Sales and Income Ratio Image Toward FY2030

    In Conclusion: Sales and Income Ratio Image Toward FY2030 ◼ Aiming for sales of ¥100 billion and operating income ratio of 20% in 2030. Operating Income Ratio Operating Income (¥Billion) Operating Income 10.0% 100.0 Ratio 100 Ratio 20.0% 8.7% 70.0 53.0 Fixed cost 50 level New Next Medium-Term Medium

  39. Slide 39: May 23, 2025 Nihon Dempa Kogyo Co., Ltd

    May 23, 2025 Nihon Dempa Kogyo Co., Ltd Copyright © 2025 Nihon Dempa Kogyo All Rights Reserved 39

Nihon Dempa Kogyo — FY2024 Earnings Presentation on 6ix