Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — FY2021 Earnings Presentation
26 slides from Nissha Co.ltd's earnings presentation, Feb 14, 2022
Slide 1: Financial Results for FY2021.12
Financial Results for FY2021.12 February 14, 2022 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Highlights
Highlights FY2021 Results ⚫ Increase in sales and profits compared to the previous fiscal year ⚫ Operating profit, Profit before tax and Profit attributable to owners of parent are the highest ever. Special dividend is implemented. ⚫ Tailwinds ⚫ Steady product demand for IT devices in H1 ⚫ Non-IT bu
Slide 3: FY2021 Results
FY2021 Results FY2021 Results ©2022 Nissha Group 3
Slide 4: FY2021 (Full-year) Results
FY2021 (Full-year) Results ⚫ Industrial Materials and Medical Technologies drove the increase in sales. ⚫ Productivity improvement of Industrial Materials and the equalization of production volumes in Devices contributed to increase in profit. (Millions of JPY) FY2020 FY2021 Results Results YoY Net
Slide 5: FY2021 Q4 (3 months) Results
FY2021 Q4 (3 months) Results ⚫ QoQ: Profit decreased due to demand decline, a lowered production efficiency caused by supply constraints, and cost increase in US and EU. (Millions of JPY) FY2020 FY2021 FY2021 Q4 Q3 Q4 YoY QoQ Results Results Results Net sales 51,221 47,948 43,752 -14.6% -8.8% Indust
Slide 6: Industrial Materials
Net sales by application (by quarter) Industrial Materials ⚫ Decoration (Mobility) and Sustainable Materials (Metallized paper) drove the increase in sales. ■ ■ Sustainable Materials (Metallized paper) ■ ■ Decoration (Others) ■ ■ Decoration (Mobility) (Millions of JPY) 16,252 15,513 15,000 14,352 14
Slide 7: Devices
Net sales by application (by quarter) Devices ⚫Demand decline for smartphones in Q4/2021 was as assumed. ■ ■ Portable game players, Industrial equipment (logistics related), Mobility, Gas sensors and others ■ ■ Tablet devices, Smartphones and others (Millions of JPY) 32,153 29,965 30,000 27,002 25,5
Slide 8: Medical Technologies
Net sales by application (by quarter) Medical Technologies ⚫Recovery trend from COVID-19 continued. ■ ■ Business media ■ ■ Medical devices (Own brand) ■ ■ Medical devices (CDMO) (Millions of JPY) 6,266 6,399 6,098 5,700 5,213 5,411 5,068 5,000 4,586 2,500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 ©2022 Ni
Slide 9: Outlook for the 7th Medium-term Business Plan (2021-2023)
Outlook for the 7th Medium-term Business Plan (2021-2023) ©2022 Nissha Group 9
Slide 10: Priority markets in the 7th Medium-term Business Plan
Priority markets in the 7th Medium-term Business Plan Non-IT IT Priority Markets Medical Sustainable Devices Mobility Materials IT Devices ⚫ Expansion of Medical Devices CDMO ⚫ Focus on profitability ⚫ Growth of Mobility and Sustainable rather than volume Materials ⚫ Implement M&A in the priority ma
Slide 11: Sustainability Vision: Challenge "Medical market" company-wide
Sustainability Vision Challenge “Medical market” company-wide Target market break down Medical market break down by business Drug Delivery System (DDS) Devices 2030 2030 Net sales Net sales in Industrial Materials 300 billion yen Medical market 150 billion yen Medical Technologies 2021 (Japan, Asia)
Slide 12: Cash generation shifts from IT to non-IT
Cash generation shifts from IT to non-IT The 6th Medium-term The 7th Medium-term The 8th Medium-term Business Plan Business Plan Business Plan IT centered, Non-IT increase, stable Growth in Medical, Mobility, volatile growth, accelerate M&A and Sustainable Materials EBITDA* 3 years cumulative EBITDA
Slide 13: Medical Technologies: Medical Devices (CDMO) drives growth
Medical Technologies Medical Devices (CDMO) drives growth ■Business Media Net sales (Millions of JPY) ■Medical Devices (Own brand) Net sales (Millions of JPY) Progress to date 40,000 20.0% ■Medical Devices (CDMO) Net sales (Millions of JPY) ● Operating profit margin ⚫ Demand recovery from the impact
Slide 14: Industrial Materials: Growth of Sustainable Materials continues
Industrial Materials: Growth of Sustainable Materials continues. Progress exceeds the vision of the Medium-term Business Plan (2023). ■Sustainable Materials Net sales (Millions of JPY) Progress to date 000 ■Decoration (Others) Net sales (Millions 20.0% of JPY) ⚫ Profitability improved significantly
Slide 15: Devices: Maintain profitability under downturn in smartphones
Devices: Maintain profitability under downturn in smartphones ■Tablet devices, Smartphones and others Net sales (Millions of JPY) ,000 ■Mobility Net sales (Millions of JPY) Progress to date ■Portable game players, Industrial equipment (logistics related) and others Net sales (Millions of JPY) ⚫ Prof
Slide 16: Focus in the priority markets
Focus in the priority markets Medical ⚫ CDMO ⚫ Medical Devices: Minimally invasive surgical devices, clinical patient monitoring devices ⚫ Drug Delivery System (DDS): Film type pharmaceuticals Sustainable Materials ⚫ Application exploration of metallized paper (Ex. Food packages) ⚫ Expand sustainabl
Slide 17: Cash allocation (3 years cumulative) update
Cash allocation (3 years cumulative) update Cash-in is to increase, accelerate M&A investment Cash-in Cash-out Cash inflow Asset sales, etc. ⚫ Operating cash flows Improve financial soundness ⚫ Continue to reduce strategic shareholdings Shareholder returns 5.0 billion yen or higher Cash outflow M&A
Slide 18: FY2022 Forecast
FY2022 Forecast (Millions of JPY) FY2021 FY2022 FY2022 FY2022 Full-year Full-year H1 H2 YoY Results Forecast Forecast Forecast Net sales 189,285 175,500 83,500 92,000 -7.3% Industrial Materials 60,543 62,500 30,500 32,000 +3.2% Devices 96,971 77,000 35,400 41,600 -20.6% Medical Technologies 24,176 2
Slide 19: Sustainability Initiatives
Sustainability Initiatives ©2022 Nissha Group 19
Slide 20: Response to Climate Change
E Response to Climate Change ⚫ To reduce total CO2 emissions by 30% in 2030 (versus 2020) ⚫ Cost for 2022: 250-300 million yen ⚫ Conversion to renewable energy at Nitec Industries ⚫ Domestic production for Industrial Materials Nitec Industries ⚫ Electricity to 100% renewable (FY2022) Koka factory ⚫
Slide 21: Employee engagement
S Employee engagement ⚫Job-focused employment in active since 2020 ⚫Reskilling has been accelerated along with reorganization of business portfolio. ⚫ Nissha Academy “Priority Market Skill Training” is added. Established in 2013 ⚫Progress in diversity 30% ⚫ Female manager ratio 19% Nissha Japan Targ
Slide 22: Re-definition of Skills Matrix
G Re-definition of Skills Matrix ⚫ Reviewed and added essential skills for the Company’s Board of Directors, to achieve Sustainability Vision and the Medium- term Business Plan (October, 2021) ⚫ To elect a new Independent Outside Director who has experience and expertise in international medical dev
Slide 23: (Reference) External evaluations on our ESG
(Reference) External evaluations on our ESG ⚫ FTSE Blossom Japan Index ⚫Selected as a constituent stock for 2 consecutive years ⚫ S&P/JPX Carbon Efficient Index ⚫Included as a constituent stock as of March 2021 ⚫ Sompo Sustainability Index ⚫Selected as a constituent stock since 2012 ⚫ Health and pro
Slide 24: (Reference) Capital investment, Depreciation and amortization, R&D
(Reference) Capital investment, Depreciation and amortization, R&D Depreciation and Capital investment amortization R&D (Millions of JPY) (Millions of JPY) (Millions of JPY) 15,000 15,000 5,000 4,000 3,659 10,000 10,000 10,074 9,900 3,000 9,258 3,000 9,000 8,948 2,869 2,947 8,401 7,855 7,040 2,000 5
Slide 25: (Reference) Capital investment, D&A, M&A investment, R&D (FY2021 Result)
(Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2021 Result) (Millions of JPY) Q1 Q2 Q3 Q4 Results Results Results Results Capital investment 1,038 3,068 1,203 1,729 Depreciation and amortization 2,301 2,295 2,282 2,379 M&A ｰ ｰ ｰ ｰ investment *2018/12期より国内グループ会社
Slide 26: 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