Slide 1: Financial Results for FY2023 Q2
Financial Results for FY2023 Q2 Ended June 30, 2023 August 8, 2023 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Highlights
Highlights FY2023 H1 Results ⚫ Tailwinds ⚫ Q2 turned positive from the previous forecast, and anticipated loss in H1 turned into a profit. ⚫ Medical Technologies: Steady product demand for CDMO, and profitability improvement continued. ⚫ Industrial Materials: Steady product demand for mobility, and
Slide 3: FY2023 Q2 (3 months) Results
FY2023 Q2 (3 months) Results Turned positive compared to Q1, profitability improved in each business (Millions of JPY) 2022 Q2 2023 Q1 2023 Q2 Results Results Results YoY QoQ Net Sales 46,804 42,430 40,574 -13.3% -4.4% Industrial Materials 19,383 17,073 16,975 -12.4% -0.6% Devices 17,645 14,807 13,0
Slide 4: FY2023 H1 (6 months) Results
FY2023 H1 (6 months) Results Operating profit turned positive compared to the previous forecast (Millions of JPY) 2023 H1 2022 H1 2023 H1 Previous vs. Previous Results Results YoY forecast forecast Net Sales 88,217 83,000 83,005 -5.9% +0.0% Industrial Materials 36,169 34,200 34,049 -5.9% -0.4% Devic
Slide 5: Industrial Materials
Industrial Materials ⚫Steady product demand for Decoration (Mobility) ⚫Inventory adjustments in supply chain continued for Metallized paper Net sales trend ■ ■ Sustainable Materials (Metallized paper and others) by application ■ ■ Decoration (Home appliances and others) 30,000 ■ ■ Decoration (Mobili
Slide 6: Devices
Devices ⚫Normalized model mix of tablet devices in Q2 improved profitability ⚫Weak demand for industrial equipment continued ■ ■ Potable game players, Industrial equipment (logistics related), Mobility, 30,000 Net sales trend Gas sensors and others by application ■ ■ Tablet devices ■ ■ Smartphones 2
Slide 7: Medical Technologies
Medical Technologies ⚫Net sales increased 18.5% YoY, steady product demand for CDMO ⚫Profitability improvement continued (Improvement on productivity and efficiency) Net sales trend ■ ■ Business media by application ■■ Medical devices (Own brand) ■ ■ Medical devices (CDMO) 17,318 (Millions of JPY) 1
Slide 8: Revision of the forecast (Full-year)
Revision of the forecast (Full-year) Full-year forecast for net sales and operating profit remain unchanged. Reflecting financial income (foreign exchange gains) recorded in H1, profit before tax and profit attributable to owners of parent revised upward. (Millions of JPY) Previous forecast (May 11)
Slide 9: Prospects for medium-term (FY2025)
Prospects for medium-term (FY2025) Quotes from the previous presentation unchanged ⚫ No change in business opportunities and in competitive position of us Industrial Materials Devices Medical Technologies ⚫ New products drive growth ⚫ 2024-: Our product ⚫ Expansion of Medical (Mobility, Sustainable
Slide 10: Increasing opportunities for new products of Mobility
Increasing opportunities for new products of Mobility <Social issues> <New products> ⚫Our new products contribute to solving Comfort social issues in Mobility market. More comfort ⚫ The forecast amount of newly acquired projects received in in interior space 2023 to be increased by 2.5 times compare
Slide 11: Sustainability Initiatives
Sustainability Initiatives Naoko Yoshida Deputy Director, ESG Promotion ©2023 Nissha Group 11
Slide 12: Responding to Climate Change
Responding to Climate Change ⚫Initiatives to reduce CO2 emissions ⚫ 7.7% total CO2 emissions reduction in 2022, taking into consideration reduction by 30% in 2030 (versus 2020, Scope 1 and 2) ⚫ Progressed in grasping Scope 3 emissions by expanding the scope of calculation. CO2 Emissions Reduction Ta
Slide 13: Human capital initiatives
Human capital initiatives ⚫Diverse human resources ⚫ Diversity and Inclusion, one of our Shared Values ⚫ Raise of female manager ratio to female employee ratio Female employee Female manager ratio ratio 2021 end 2022 end 2023 end forecast 2022 end Consolidated global 20.0% 21.5% 21～22% 36.9％ Japan 5
Slide 14: Enhancement of information disclosure and external evaluation
Enhancement of information disclosure and external evaluation ⚫Our initiatives ⚫ Nissha Report (Integrated Report) ⚫ With the CEO message at the core, it presents the concept of value creation that leverages the strengths of the Nissha Group. ⚫ Enhancing quality in Sustainability Report ⚫ Comprehens
Slide 15: (Reference) External evaluations on our ESG
(Reference) External evaluations on our ESG ⚫ ESG rating agency ⚫ CDP: “B” rating in the Climate Change Report 2022 ⚫ MSCI ESG Ratings: “AA” rating ⚫ Index ⚫ GPIF: 4 out of 5 indices adopted ⚫ Certification ©2023 Nissha Group 15
Slide 16: (Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2023)
(Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2023) (Millions of JPY) Q1 Results Q2 Results Capital investment 1,817 729 Depreciation and 2,250 2,270 amortization M&A investment 2,611 359 R&D 1,095 1,132 ©2023 Nissha Group 16
Slide 17: 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