Piolax, Inc. · TSE:5988

Piolax — FY2023 Earnings Presentation

39 slides from Piolax's earnings presentation, Jun 6, 2024

Slide 2: Contents
Contents I. Medium-Term Management Plan (FY24-FY26) Establishment of New Corporate Philosophy Business Environment Management Indicators II. Growth Strategies (Auto Parts Business) III. Capital Policy IV. Promotion of ESG Management V. Growth Strategy (Medical Device Business) Yuri Yamamoto, Preside
Slide 4: Establishment of New Corporate Philosophy "Piolax Way"
Establishment of New Corporate Philosophy On the occasion of our 90th anniversary in October 2023, we established the corporate philosophy "Piolax Way.“ "Piolax Way" All Rights Reserved, Copyright © PIOLAX, INC. 4
Slide 5: Business Environment
Business Environment Red text: Corrections Growth factors Risk factors since last time Global car production: almost flat [Market] Global car production forecast (Unit: 1 mil. cars) • Sluggish Japanese OEMs in China and 2024 2025 2026 2030 Thailand 89 92 91 92 105 • Decreased orders for existing Pio
Slide 6: Management Indicators - 1
Management Indicators - 1 Medium-term management plan (FY24-FY26) and review of previous plan (FY23-FY25) Sales Operating profit Operating (¥100 mil.) Previous Current Previous Current profit ratio (¥100 mil) 800 750 OPR (Previous) OPR (Current) 680 720 700 100 660 88 630 646 87 68 15% 12.1% 11.7% 5
Slide 7: Management Indicators - 2 by Segment
Management Indicators - 2 by Segment Assumptions for FY26 sales plan (¥69.1) Global car production will remain flat. Promote sales of CASE products with aggressive R&D and capital investment. Shift strategies in China and Thailand, where business is sluggish. Exchange rate: 1 USD = 145 JPY, 1 CNY =
Slide 8: Management Indicators - 2 by Segment
Management Indicators - 2 by Segment Assumption for FY26 sales plan (¥5.9 billion) While sales increase will push up marginal profit in FY24, increasing development and labor costs and other expenses will have a major impact, resulting in a temporary deficit. The period FY24-FY26 will see sales incr
Slide 10: Management Strategy and Plan (Auto Parts 1)
Management Strategy and Plan (Auto Parts 1) 1. Product and customer strategies Management strategy and FY23 FY24 FY26 FY30 priority issue result target target target Develop and get orders of CASE products Sales expansion of CASE Target: ¥1 bil. ¥1 bil. → Sales of ¥10 bil. products Actual: ¥1.1 bil.
Slide 11: Management Strategy and Plan (Auto Parts 2)
Management Strategy and Plan (Auto Parts 2) 3. Regional strategy Management strategy and FY23 FY24 FY26 FY30 priority issue result target target target Business strategy in North America North America (USA and Target: 35% or more 40% or more 40% or more 35% or more Mexico) sales among Actual: 42% ov
Slide 12: Management Strategy and Plan (Auto Parts 3)
Management Strategy and Plan (Auto Parts 3) 4. Growth investment strategy Management strategy and FY23 FY24 FY26 FY30 priority issue result target target target Develop infrastructure in Japan Build new Moka Plant Phase I completed Phase II Decide Phase III 200% productivity Phase II started complet
Slide 13: Sales Expansion of CASE Products - 2
Sales Expansion of CASE Products - 2 Strengthen development and sales system of CASE products Co-creation activities Sales plan of CASE products with MIRAI Business Dept. (¥100 mil.) Sales: ¥10 bil. Increase R&D expenses Operating for new development profit ratio: 15% Install large molding machines
Slide 14: Product Strategy (Existing Products)
Product Strategy (Existing Products) Carefully watch market trends of EV, PHEV and ICE (customers’ strategies by region, timeline, production scale). Develop strategies for existing products (comprehensive view of market environment changes). Execute “selection and concentration" in terms of develop
Slide 15: Sales Expansion of CASE Products - 1
Sales Expansion of CASE Products - 1 Steady progress of entering into and selling CASE products ■ We are steadily getting orders; sales expansion target in FY23 was achieved. <Breakdown> Battery-related 60% / ADAS-related 20% / e-Axle, vibration control, etc. 20% ■ Build relationships with new custo
Slide 16: Diversifying Customers and Products
Diversifying Customers and Products FY2026 Target ■ Sales from non-Japanese OEMs: 18% ■ Per-car sales for new models: +10% (from former models) Increase per-car sales (Japan) (¥100 mil.) Sales by OEM ・ Target: Major models of Japanese OEMs 800 691 ・ Raise the unit price of parts and win new orders 5
Slide 17: Initiatives at Overseas Bases
Initiatives at Overseas Bases Europe (U.K. / Germany) ・ Enhance sales to German OEMs. ・ Continue to consider production allocation in Overseas sales Europe. (¥100 mil.) in the medium-term plan ASEAN (Korea, Thailand, Indonesia) and India 480 ・ Thailand: Shift business strategy (explained 500 7% sepa
Slide 18: Initiatives at Overseas Bases (China)
Initiatives at Overseas Bases (China) Shifting business strategy in China China auto market [Measures to expand sales] ・ Japanese OEMs are sluggish. (1) Change kakuhan targets ・ Chinese OEMs are expanding their share ・ Chinese OEMs (emerging EV makers) + Existing (about 10% up from FY21 to FY24). cu
Slide 19: Initiatives at Overseas Bases (Asia)
Initiatives at Overseas Bases (Asia) Shifting business strategy in Thailand Thai auto market [Measures to expand sales] ・ Sluggish car sales in the country (1) Existing business - Promote fuel system parts for ・ Increasing EV share HEV. (Chinese OEMs occupy about 80% of BEVs) (2) New business – Win
Slide 20: Infrastructure Development in Japan - 1
Infrastructure Development in Japan - 1 Starting operation at new Moka Plant Phase I zone (Plastic Building): From January 2024 Investment: ¥10.5 billion (FY22-FY25) - cost increase due to facility expansion and soaring material cost Total floor: Approx. 28,700 m2 (including Phase II zone) Phase II
Slide 21: Infrastructure Development in Japan - 2
Infrastructure Development in Japan - 2 For future growth - New Head Office - Global Head Office that transmits Piolax corporate bland to the world for a long time – Sustainable office Consolidate functions of Head Office and Yokohama Technical Center. Promote workstyle reform through working from h
Slide 22: Capital Investment / Depreciation
Capital Investment / Depreciation Capital investment for future leaps, mainly in the development of domestic infrastructure Trends in capital investment and [FY24] depreciation Start construction of the Moka Medium-term plan: ¥22.7 bil. Plant’s Phase II zone. PJ’s infrastructure Start construction o
Slide 23: Growth Investment (Capital investment)
Growth Investment (Capital investment) For further growth toward the 100th anniversary (2033) and beyond Corporate growth 3-year No. Growth investment Main contents / targets Improve stakeholder (¥100 mil.) 1Developing new 20Sales expansion: ¥22 bil. for 3 years satisfaction. CASE products FY30 glob
Slide 25: Capital Policy - 1
Capital Policy - 1 Key KPIs FY25 management indicators FY26 management indicators (Previous) (Amended) 8% or more 8% or more ROE Final target: 10% or more Final target: 10% or more EVA spread + EVA spread + Dividend payout ratio 100% 100% (continuing) ROE trend Dividend and payout ratio (JPY) 108.0%
Slide 26: Capital Policy - 2: Toward PBR 1x
Capital Policy - 2 Toward PBR 1x 3-year capital policy (FY24-FY26) Curb the buildup of equity capital 100% dividend payout ratio Agile repurchase/retirement of treasury stock Retirement: To be implemented on June 26, 2024 (disclosed on May 10, 2024) Repurchase: Being examined for implementation in t
Slide 27: Capital Policy - 3
Capital Policy - 3 FY24-FY26 ・ Aim to optimize the optimal capital structure and capital efficiency. ・ Make aggressive growth investment for the future. ・ Increase investment in R&D to promote new product development. ・ Take additional measures to improve ROE and shareholder returns. Cash Allocation
Slide 29: Efforts for Carbon Neutrality
E Efforts for Carbon Neutrality Introduction of renewable energy Moka Plant (Tochigi prefecture), Fuji Plant (Shizuoka prefecture), and Piolax Medical Device have started to use renewable energy 100% since FY23. Installation of solar panels Solar panels are installed on the new Moka Plant to promote
Slide 30: Diversity Initiatives
S Diversity Initiatives Diversity-related data Improvement is seen in FY23. FY21 FY22 FY23 FY30 Percentage of female managers 3.5% 3.9% 5.2% 20% or more Gender wage differential ー 79.1% 81.0%* Eliminate the differential (regular workers) Percentage of male employees 18.2% 55.6% 60.0% Further improve
Slide 31: Strengthening Governance
G Strengthening Governance Aggressive management aiming to enhance corporate value Aimed structure of the Board over the medium to long term Female directors: 30% or more Outside directors: Majority ■2023 Review the executive compensation system. Introduce a performance-linked factor → Expanded to e
Slide 33: Business Environment and Aiming Direction
Business Environment and Aiming Direction [FY23] Impact of the corona infectious disease and competition ・ Soaring material, energy, and labor costs ・ Deterioration of competitive environment (Fierce competition due to the reduced number of cases and the shrinking market) ・ Increased cost to keep co
Slide 34: Management Strategy (Medical Device Business)
Management Strategy (Medical Device Business) 1. Business selection and concentration ・ Concentrate resources on “vascular treatment*1" and “non-vascular treatment*2.“ ・ Maintain the top share in Japan of specific products*3 and increase the ratio. ・ Expand the market and strengthen the production s
Slide 35: Business selection and concentration
Business selection and concentration Selection and Vascular treatment concentration x Global Non-vascular treatment 1. Maintain the top share in Japan and raise the ratio Enhance production and expand market. Vascular embolic coil Endoscopic guidewire 2. Build evidence Expand market (in Japan and ov
Slide 36: Efforts for New Product Development
Efforts for New Product Development ■ Conventional ■ Future Main focus on super niche Unique products in niche markets and generic products markets that can be expanded overseas Based on Scientific evidence ・ Small market ・ Less competition ・ Fierce competition ・ Long product life cycle ・ Short prod
Slide 37: Strong Cooperation with Parent Company
Strong Cooperation with Parent Company Use the strengths of designing, development, manufacturing, and processing that Piolax has accumulated in the medical field 1. Increase production capacity (Use Moka Plant) July 2024: Start parts processing at Moka Plant. From 2025: further promote production e
Slide 38: Mission "Bringing Smiles to Patients in the World"
Mission "Bringing Smiles to Patients in the World" Promote unique and highly competitive product development. Use OEMs to gain high market share in domestic and overseas niche markets. Aim to achieve sales ¥10 billion and operating profit of ¥1 billion in FY2030. (¥100 mil.) Sales and operating prof
Slide 39: Precautions for handling this document
Precautions for handling this document The forward-looking statements contained in this document are based on information available to us at the time of publication. Please note that such statements are future projections at this time and contain risks and uncertainties and that actual results may s

Piolax — FY2023 Earnings Presentation on 6ix

Piolax — FY2023 Earnings Presentation

Slide 1: Piolax, Inc. (Code: 5988)

Slide 2: Contents

Slide 3: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 4: Establishment of New Corporate Philosophy "Piolax Way"

Slide 5: Business Environment

Slide 6: Management Indicators - 1

Slide 7: Management Indicators - 2 by Segment

Slide 8: Management Indicators - 2 by Segment

Slide 9: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 10: Management Strategy and Plan (Auto Parts 1)

Slide 11: Management Strategy and Plan (Auto Parts 2)

Slide 12: Management Strategy and Plan (Auto Parts 3)

Slide 13: Sales Expansion of CASE Products - 2

Slide 14: Product Strategy (Existing Products)

Slide 15: Sales Expansion of CASE Products - 1

Slide 16: Diversifying Customers and Products

Slide 17: Initiatives at Overseas Bases

Slide 18: Initiatives at Overseas Bases (China)

Slide 19: Initiatives at Overseas Bases (Asia)

Slide 20: Infrastructure Development in Japan - 1

Slide 21: Infrastructure Development in Japan - 2

Slide 22: Capital Investment / Depreciation

Slide 23: Growth Investment (Capital investment)

Slide 24: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 25: Capital Policy - 1

Slide 26: Capital Policy - 2: Toward PBR 1x

Slide 27: Capital Policy - 3

Slide 28: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 29: Efforts for Carbon Neutrality

Slide 30: Diversity Initiatives

Slide 31: Strengthening Governance

Slide 32: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 33: Business Environment and Aiming Direction

Slide 34: Management Strategy (Medical Device Business)

Slide 35: Business selection and concentration

Slide 36: Efforts for New Product Development

Slide 37: Strong Cooperation with Parent Company

Slide 38: Mission "Bringing Smiles to Patients in the World"

Slide 39: Precautions for handling this document