Piolax, Inc. · TSE:5988
Piolax — FY2020 Earnings Presentation
25 slides from Piolax's earnings presentation, Jun 11, 2021
Slide 1: Piolax, Inc. Results Briefing, June 11, 2021
Friday, June 11, 2021 PIOLAX, INC. (Code: 5988) Yukihiko Shimazu, President All Rights Reserved, Copyright © PIOLAX, INC. 1
Slide 2: Contents
Contents Medium-Term Management Plan (FY21 to FY23) ・Vision ・Basic Policies ・Management Strategies ・Priority Measures and Initiatives All Rights Reserved, Copyright © PIOLAX, INC. 2
Slide 3: Vision, Basic Policies, And Management Strategies
Vision, Basic Policies, And Management Strategies Vision As a pioneer creating elasticity, widely contribute to industries and society. Basic Policies 1. Reform existing businesses. 2. Take on the challenge of new/next-generation businesses. 3. Strength the management foundation. 4. Actively invest
Slide 4: Business Environment
Business Environment Medium-Term Management Plan Growth Factors Risk Factors Continued increase in global automobile • Reduced production of major customers production Global automobile production forecast (Unit: 1 million cars) • Decreased orders for existing Piolax products due to the shift to EVs
Slide 5: Management Indicator 1
Medium-Term Management Plan Management Indicator 1 FY23 Management Indicators Consolidated Consolidated 10.5 billion JPY 70 billion JPY sales operating profit Operating profit ratio: 15% Overseas 46.5 billion JPY Overseas 5.7 billion JPY subsidiaries Overseas ratio: 66% subsidiaries Operating profit
Slide 6: Management Indicator 2
Medium-Term Management Plan Management Indicator 2 FY23 Management Indicators 8% or more ROE (Final target: 10% or more) Consolidated dividend 30% or more payout ratio ROE trend (JPY) Trend in dividends and dividend payout ratio Final target: 10% or more 60 Dividend Commemorative dividend Dividend p
Slide 7: 1. Product And Customer Strategies
Management Strategy 1 1. Product And Customer Strategies Aim for further growth by covering the anticipated decline in sales of existing products due to the shift to EVs by 2030. Priority Measures and Major Initiatives FY23 Targets Develop and win orders for CASE- Expand sales of CASE-compliant comp
Slide 8: Initiatives for CASE-Compliant Products
Initiatives for CASE-Compliant Products Management Strategy 1 FY21: Shift the focus from development to winning orders. Piolax products equipped in Orders are being secured for EVs to be launched in the future. current EVs Promote development and order-winning efforts through in- Battery-related hou
Slide 9: Kakuhan to Japanese OEMs
Kakuhan to Japanese OEMs Management Strategy 1 Orders received per new vehicle: (100 million Sales and composition ratio +10% compared to the current models JPY) by OEM 800 700 Make proactive proposals in 700 625 8% anticipation of customer needs. 600 7% 15% Medical Propose parts made in combination
Slide 10: Kakuhan to Non-Japanese OEMs
Kakuhan to Non-Japanese OEMs Management Strategy 1 FY20: Kakuhan slowed down due to the COVID-19 crisis, but Medium-term kakuhan plan to non-JPN OEMs recovered in the 2nd half. Others Strengthen group collaboration across overseas sites. Hyundai Kia Expand target products. Chinese O&C parts Fuel sys
Slide 11: Kakuhan of Existing Products
Kakuhan of Existing Products Management Strategy 1 Target Kakuhan Products 2K parts (Fuel system parts) Spring cushion (O&C mechanism parts) Respond to tightening overseas environmental Aim for global sales expansion. regulations. ・Enhance merchantability of glove boxes with ・Promote kakuhan in the
Slide 12: 2. Business Strategy
2. Business Strategy Management Strategy 2 Expand sales of the medical device business as business diversification. Aim to discover a profitable new business by FY30. Priority Measures and Major Initiatives FY23 Targets Expand the medical device business. Medical device business ・Accelerate developm
Slide 13: Medium-Term Management Plan for Medical Device Business 1
Management Medium-Term Management Plan Strategy 2 for Medical Device Business 1 Sales and operating profit ratio (100 million JPY) 60 Sales (Left axis) Operating profit ratio (Right axis) 56 51 47 15.0% 43 43 11% 8% 6% 6% 5% 0 0.0% 2019 Actual 2020 Actual 2021 2022 2023 (FY) 1. Launch differentiated
Slide 14: Medium-Term Management Plan for Medical Device Business 2
Management Medium-Term Management Plan Strategy 2 for Medical Device Business 2 Specific Initiatives for the Medium-Term Management Plan 1. Launch differentiated Develop and launch unmet-needs products, focusing on specific products to specific markets. areas in minimally-invasive treatment such as
Slide 15: Discovery of New Business
Discovery of New Business Management Strategy 2 Promote the discovery of a new business that will become the third pillar following the automobile and medical businesses. Consider collaborative development with other industries by utilizing our "elasticity technologies”. Development of “myoelectric
Slide 16: 3. Regional Strategy
3. Regional Strategy Management Strategy 3 Strengthen the globally efficient earning structure through regional strategy. Priority Measures and Major Initiatives Fiscal 2023 Targets Expand sales of North American and Sales ratio of North American and Chinese sites. Chinese sites Expand localization.
Slide 17: Initiatives by North American Sites
Management Strategy 3 Initiatives by North American Sites Promote localization and kakuhan to overseas OEMs. <U.S. and Mexican sites> Sales and operating profit ratio (U.S. and Mexican sites) Promote localization (Measures against trade 20% 150 conflicts between the U.S. and China). (100 million JPY
Slide 18: Initiatives By Chinese Sites
Management Strategy 3 Initiatives By Chinese Sites Strengthen the sales system. Enhance the sales system. Sales and operating profit ratio • Improve the added value and enhance efficiency Sales (3 Chinese sites) company 20% and governance of each division through 150 established supervisory function
Slide 19: Initiatives by ASEAN Sites
Management Strategy 3 Initiatives by ASEAN Sites Improve optimization in the ASEAN region to enhance competitiveness. Cooperative initiatives by ASEAN sites FY23 operating profit ratio (Cooperation among 3 sites - PT, PI, and PD) by region Europe PK Conduct activities for optimal production 5% 3% As
Slide 20: 4. Growth Investment Strategy
4. Growth Investment Strategy Management Strategy 4 Accelerate investment in production and development to expand sales and investment in company-wide productivity improvement to secure profit. Priority Measures and Major Initiatives FY23 Targets Develop domestic infrastructure. Complete the 1st pha
Slide 21: Capital Investment And Depreciation
Capital Investment And Depreciation Management Strategy 4 Capital investment for sustainable growth ・FY20: Restrained investment due to the COVID-19 crisis. ・FY21 onward: Introduce automated/labor-saving equipment globally. Medium-term management plan ・FY22 onward: Develop domestic infrastructure (n
Slide 22: Domestic Infrastructure Development
Domestic Infrastructure Development Management Strategy 4 1. New Moka Plant [Expand mother functions and aim for the next- Total investment: Approx. 6 billion JPY (FY22- generation plant] FY23) Site for the new Moka Plant ・2018: Purchased a land (approx. 33,000 m²) adjacent to the current plant. Tar
Slide 23: 5. Management Capital Strategy
5. Management Capital Strategy Management Strategy 5 Priority Measures and Major Initiatives FY23 Targets Pursuit capital efficiency. ROE: 8% or more • Improve ROE and promote ROIC-based (Final target: 10% or more) management. Consolidated dividend payout ratio: Return profits to shareholders. 30% o
Slide 24: Promotion of ESG-Based Management
Management Strategy 5 Promotion of ESG-Based Management Applicable Materiality Piolax Major Initiatives Major SDGs ESG Vision 2030 • Energy Corporate activities aiming for ・Activities toward carbon • Emission into the air a carbon-free society and a neutral: reduction of • Waste recycling-oriented s
Slide 25: Carbon Neutral Initiatives
Carbon Neutral Initiatives Management Strategy 5 Greenhouse gas emissions by the Piolax group (FY19) Scopes based on the GHG emission calculation standard /Scope 1: Direct emissions /Scope 3: Other indirect emissions /Scope 2: Indirect emissions ... Supply chain including transportation, etc. Formul