Slide 1: Financial Results for FY2022 Q2
Financial Results for FY2022 Q2 Ended June 30, 2022 August 8, 2022 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Highlights
Highlights FY2022 H1 Results ⚫ Tailwinds ⚫ Steady product demand for Industrial Materials and Medical Technologies ⚫ Metallized paper in Industrial Materials: Product price increased ⚫ Devices: Profitability has been improved due to demand equalization. ⚫ Headwinds ⚫ Cost soaring continued (raw mate
Slide 3: FY2022 H1 (6 months) Results
FY2022 H1 (6 months) Results ⚫ Product demand for Industrial Materials and Medical Technologies grew (Millions of JPY) FY2021 FY2022 FY2022 H1 H1 H1 YoY vs. Previous Results Previous Results (vs. FY2021 forecast forecast H1) Net sales 97,584 86,400 88,217 -9.6% +2.1% Industrial Materials 29,885 32,7
Slide 4: Profitability stabilized by equalization due to decline in smartphones demands and growth in non-IT devices
Profitability stabilized by equalization due to decline in smartphones demands and growth in non-IT devices Consolidated net sales (by target ■Smartphones ■Tablet devices (Millions of JPY) market) and operating profit ■Non-IT devices ●Operating profit margin 150,000 30.0% 134,862 Implemented Decreas
Slide 5: FY2022 Q2 (3 months) Results
FY2022 Q2 (3 months) Results ⚫ Increased in net sales and profit QoQ (vs. 2022 Q1) due to strong demand and price increase (Millions of JPY) FY2021 FY2022 FY2022 Q2 Q1 Q2 YoY QoQ Results Results Results (vs. FY2021 (vs. FY2022 Q2) Q1) Net sales 50,444 41,412 46,804 -7.2% ✓+13.0% Industrial Materials
Slide 6: Industrial Materials
Industrial Materials ⚫ Decoration: Steady demand for home appliances, and declined demand in Q2 for mobility due to supply constraints ⚫ Sustainable Materials (Metallized paper): Product price increased with steady demand ■Sustainable Materials (Metallized paper) Net sales trend by ■Decoration (Othe
Slide 7: Devices
Devices ⚫ Flat for tablet devices, due to supply constraints. To recover in H2 ⚫ Steady product demand for industrial equipment Net sales trend by ■ ■Potable game players, Industrial equipment (logistics related), Mobility, Gas sensors and others Application (by quarter) ■Tablet devices and others ■
Slide 8: Medical Technologies
Medical Technologies ⚫ Strong demand mainly on medical devices CDMO ⚫ Cost soaring of raw materials, labor and transportation depressed profitability ⚫ Keeping effort on product price increase and productivity improvement ■ ■Business media 10,000 Net sales trend by ■ ■Medical devices (Own brand) App
Slide 9: H1→H2 Demand trend forecast
H1→H2 Demand trend forecast Business Products Markets H1 → H2 Demand trend Industrial Decoration Mobility Demand recovery from the impact of Materials supply constraints Home appliances Strong demand in H1 to halt Sustainable Beverage labels and Strong demand Materials food labels Net sales increase
Slide 10: Forecast revised upward
Forecast revised upward ⚫ H1: Results exceeded the previous forecast ⚫ H2: Reflecting the outlook for demand increase, product price increase, cost soaring and revised exchange rate assumption ⚫ Forex impact: Net sales +3.4 billion yen, Operating profit +450 million yen H1 H2 Full-year （＋11,600） ■Ne
Slide 11: Forecast revised upward
Forecast revised upward (Millions of JPY) Previous forecast (May 12) Revised forecast (August 8) FY2022 FY2022 FY2022 FY2022 FY2022 FY2022 Full-year H1 H2 Full-year H1 H2 forecast Forecast Forecast forecast Results Forecast Net sales 178,400 86,400 92,000 190,000 88,217 101,783 Industrial Materials
Slide 12: Sustainability Initiatives
Sustainability Initiatives ©2022 Nissha Group 12
Slide 13: Information disclosure based on TCFD recommendations
Information disclosure based on TCFD E recommendations ⚫ Conducted scenario analysis ⚫ 1.5 degree C, 3 degree C ⚫ Initial analysis, specific to Device business ⚫ Result of analysis ⚫ Although there are financial risks in both scenarios, we have taken countermeasures and confirmed that they are reaso
Slide 14: Employee Engagement Survey
S Employee Engagement Survey ⚫Response rate 87.9% (Nissha Group in Japan) ⚫Expand to overseas group companies in 2022 H2 ⚫Conduct factor analysis on the results and set specific actions for each business and workplace *Positive response rate: Percentage of respondents who responded positively to the
Slide 15: Issued Nissha Report 2022 (Integrated Report) / Nissha Sustainability Report 2022
Issued Nissha Report 2022 (Integrated Report) / Nissha Sustainability Report 2022 Nissha Sustainability Report 2022 Nissha Report 2022 (Integrated Report) ⚫ The central focus of the report is Message ⚫ Contains comprehensive non-financial from the CEO information ⚫ Represents the concept of value cr
Slide 16: Reference: External evaluations to our ESG initiatives
Reference: External evaluations to our ESG initiatives ⚫CDP ⚫ Received a "B" rating in the Climate Change Report 2021 ⚫FTSE Blossom Japan Index ⚫ Selected for 2 consecutive years ⚫FTSE Blossom Japan Sector Relative Index ⚫S&P/JPX Carbon Efficient Index ⚫ As of March 2022 ⚫SOMPO Sustainability Index
Slide 17: Reference: Capital investment, Depreciation and amortization, M&A investment, R&D
Reference: Capital investment, Depreciation and amortization, M&A investment, R&D (Millions of JPY) Q1 Q2 Results Results Capital 1,784 2,214 investment Depreciation and 2,280 2,370 amortization M&A investment - 151 *2018/12期より国内グループ会社の減価 償却の方法を定率法から定額法に変更しています。 R&D 842 1,049 ©2022 Nissha Group 17
Slide 18: Among the information included in this presentation and provided at investor briefings and conferences,
Among the information included in this presentation and provided at investor briefings and conferences, performance targets, plans, outlooks, strategies and other information that is not constituted of actual past facts, is information that has been judged reasonable by the managers of the Company b