Slide 1: FY2024 H1 Financial Results
FY2024 H1 Financial Results Stock Code: 6908 (Nov 5, 2024) Together, surpassing expectations by empowering connections to enrich society and delight people. Copyright © 2024 IRISO Electronics co.,ltd. All Rights Reserved.
Slide 2: Agenda
Ⅰ. FY2024 H1 Financial Summary Ⅱ. FY2024 Forecast Ⅲ. Shareholder Return Ⅳ. Topics Copyright © 2023 IRISO Electronics co.,ltd. All Rights Reserved. 1
Slide 3: FY2024 Q2 Financial Highlights
1. FY2024 Q2 Financial Highlights FY2024 H1 Results ■ Net sales of ¥27.2 billion, －3.5% YoY, and operating profit of ¥2.1 billion, －36.1% YoY due to tepid xEV sales growth and a long-term slump in the industrial market. ■ On the profit side, although there was a decline in profit primarily due to a
Slide 4: Result Summary
２. Result Summary Unit: Yen in Millions FY2024 H1 YoY FY2023 Currency H1 Currency Q1 Q2 H1 Change Change % Impact Impact Excluded Net Sales 28,140 12,534 14,624 27,159 (980) (3.5)% +1,574 25,585 Operating 3,315 190 1,929 2,119 (1,196) (36.1)% ＋50 2,069 Profit Operating 11.8% 1.5% 13.2% 7.8% (4.0)pts
Slide 5: QoQ Changes in Net Sales and Operating Profit
3. QoQ Changes in Net Sales and Operating Profit Currency impact excluded. Index:100 in FY2023 Q1) Unit: JPY in Millions 122 107 110 100 92 100 15,643 14,130 14,624 12,496 13,000 12,534 15.0% 13.2% 11.4% 7.7% 8.1% 1.5% 967 2,348 1,476 1,929 1,144 190 Q1 Q2 Q3 Q4 Q1 Q2 FY2023 FY2024 Net Sales Operati
Slide 6: FY2024 H1 Financial Summary
4. FY2024 H1 Financial Summary Unit: JPY in Millions FY2023 FY2024 Breakdown Breakdown Change Change % H1 H1 Net Sales 28,140 100.0% 27,159 100.0% (980) (3.5)% Mobility 23,986 85.2% 23,577 86.8% (409) (1.7)% Consumer 2,437 8.7% 2,361 8.7% (75) (3.1)% Industrial 1,715 6.1% 1,220 4.5% (495) (28.9)% Co
Slide 7: Change Factor: Sales and Operating Profit (VS. FY2023 H1)
5. Change Factor: Sales and Operating Profit (VS. FY2023 H1) Unit: JPY in Millions Operating Operating Net Sales Change Factor Profit Margin FY2023 H1 Results 28,140 3,315 11.8% Impact of FY2023 Q2 sales ahead of Q3: \0.9B ERP System Change Impact (1,600) (750) Impact of FY2023 Q4 sales ahead of FY2
Slide 8: Financial Status
6. Financial Status Unit: JPY in Millions FY2023 FY2024 H1 VS. Previous year-End Current Asset 56,093 54,677 (1,416) Cash & Deposit 26,692 27,221 +528 Account Receivable 15,010 13,360 (1,650) Inventory 12,616 11,780 (836) Noncurrent Asset 40,762 40,860 +98 Total Asset 96,856 95,538 (1,317) Total Lia
Slide 9: Cash Flows
7. Cash Flows Unit: JPY in Millions FY2023 H1 FY2024 H1 YoY Change Operating Cash Flow Margin 18.8% 25.6% ＋6.8pts Operating Cash Flow 5,287 6,942 ＋1,654 Net Income Before Income Taxes 4,101 1,492 (2,609) Depreciation and Amortization 3,072 3,498 ＋425 Changes in Operating Fund “() indicates increase“
Slide 10: Capex and Depreciation Change
8. Capex and Depreciation Change Unit: JPY in Millions 2,761 2,755 2,501 2,314 2,280 CapEx 1,472 18.8% 20.0% 17.7% 17.8% 18.2% 10.4% Q1 Q2 Q3 Q4 Q1 Q2 FY2023 FY2024 Capex (Regular) Capex (New Plants & New ERP) Capex Ratio to Net Sales Unit: JPY in Millions 1,781 1,652 1,716 Depreciation 1,550 1,601
Slide 11: Net Sales by Region and Product
9. Net Sales by Region and Product ■By Region Unit: Yen in Millions FY2023 FY2024 H1 YoY H1 Breakdown Q1 Q2 H1 Breakdown Change Change Japan 4,983 17.7% 1,810 2,336 4,146 15.3% (836) (16.8)% Greater China 11,014 39.1% 5,105 6,275 11,381 41.9% +366 ＋3.3% and S.Korea USA 3,451 12.3% 1,598 1,612 3,211
Slide 12: Sales by Market: Mobility
10. Sales by Market: Mobility Infotainment ■¥(409) mm, (1.7)% YoY ・ H1:＋2.1% YoY Unit: JPY in Millions ・ On a steady growth track, helped by 23,986 23,577 sales of high-speed transmission BtoB connectors for LCD panel and auto ECU. 3,951 3,807 Sensor ・ H1: -14.5% YoY 5,864 5,945 ・ Decrease due to re
Slide 13: Sales by Market: Consumer and Industrial
11. Sales by Market: Consumer and Industrial ■ Consumer: ¥ (75) mm, (3.1%) YoY Unit: JPY in Millions ・H1: Decrease in sales for game console, whereas increase 2,437 2,361 in sales for printer and digital camera. ・Q2: Increase in sales for both game console and printer from Q1. FY2023 FY2024 YoY QoQ
Slide 14: Agenda
Ⅰ. FY2024 H1 Financial Summary Ⅱ. FY2024 Forecast Ⅲ. Shareholder Return Ⅳ. Topics Copyright © 2023 IRISO Electronics co.,ltd. All Rights Reserved. 13
Slide 15: Business Environment
1. Business Environment Initial Strategic Assumption Where We Stand Now ・Auto production ・Less than 90M in FY2024 due to weak demand mainly in FY2023:90M → FY2024:92M. 102% YoY the automotive markets in Japan, US and EU. Particularly, Demand ・xEV sluggish demand for EVs has resulted in the growth ra
Slide 16: FY2024 Earnings Forecast
2. FY2024 Earnings Forecast ■ Revision to the full-year plan. No change to the share dividend H2 exchange rate: USD: 145JPY, EUR:160JPY, CNY:20JPY Unit: Yen in Millions FY2023 FY2024 YoY Full Year Full Year VS. H1 Full Year H1 Revised VS. H1 Initial Plan Full Year Plan Net Sales 28,140 55,271 27,159
Slide 17: FY2024 Net Sales Plan By Market
3. FY2024 Net Sales Plan By Market Unit: Yen in Millions FY2023 FY2024 Revised Plan Full Year H1 H2 Full Year VS. Results Breakdown Breakdown Breakdown YoY Initial Plan Results Revised Plan Revised Plan Initial Plan Total Mobility 47,823 86.5％ 51,000 87.9％ 23,577 23,722 47,300 87.6％ (1.1)％ (7.3)％ In
Slide 18: Change Factor: Sales and Profit (VS. Initial Plan)
4. Change Factor: Sales and Profit (VS. Initial Plan) Unit: Yen in Millions Operating Operating Net Sales Factor Profit Margin FY2024 Initial Plan 58,000 7,000 12.1% Currency Impact +1,050 0 Reduced production output to align Change in Product with the strategy of lowering (5,050) (2,700) Volume inv
Slide 19: Changing Business Environment and Strategy
5. Changing Business Environment and Strategy Business Situation How to Respond [Mobility Market] ・Expanding our business for automotive centralized control ECU by going ・Automakers’ sales slump in Japan, EU beyond the initially set goals. and US, as well as slowing EVs market. →Focusing our efforts
Slide 20: Agenda
Ⅰ. FY2024 H1 Financial Summary Ⅱ. FY2024 Forecast Ⅲ. Shareholder Return Ⅳ. Topics Copyright © 2023 IRISO Electronics co.,ltd. All Rights Reserved. 19
Slide 21: Share Buyback Plan
Share Buyback Plan We will improve our management strategy for a strong commitment to the cost of capital and our stock price. As our current stock price is lower than the actual corporate value, we have decided to buy back more of our own shares to ensure we can meet the ROE and ROIC targets set in
Slide 22: Agenda
Ⅰ. FY2024 H1 Financial Summary Ⅱ. FY2024 Forecast Ⅲ. Shareholder Return Ⅳ. Topics Copyright © 2023 IRISO Electronics co.,ltd. All Rights Reserved. 21
Slide 23: Topics
Topics ■“Annual Integrated Report 2024” Published ・First release of the company’s annual integrated report (Download URL: 【Here】) ・This first issue includes a basic company profile such as IRISO history, business activities and competencies, as well as its value creation story to help readers get to
Slide 24: Company Profile
Company Profile Company Name IRISO ELECTRONICS CO., LTD. Business Description Manufacture and sales of various types of connectors Establishment December 1966 Number of Employees 3,037 (as of March 31, 2024) Capital 5,640 million yen (as of March 31, 2024) Headquarters 2-13-8, Shinyokohama, Kohoku-k