Slide 1: Financial Results for FY2024.12
Financial Results for FY2024.12 February 13, 2025 Junya Suzuki Chairman of the Board and Group CEO Nissha Co., Ltd.
Slide 2: Contents
Contents ⚫FY2024 Results ⚫Progress of the 8th Medium-term Business Plan (2024-2026) (Business Portfolio Management to Enhance Corporate Value) ⚫FY2025 Plan ©2025 Nissha Group 2
Slide 3: Highlights
Highlights FY2024 Results ⚫ Tailwinds ⚫ Increased in net sales and profit YoY in all businesses, demand recovered and profitability improved ⚫ Industrial Materials: Steady demand for decoration (mobility, home appliances), demand recovered for sustainable materials ⚫ Devices: Demand recovered for ta
Slide 4: FY2024 (Full-year) Results
FY2024 (Full-year) Results (Millions of JPY) 2023 2024 Results Results YoY Net sales 167,726 195,598 +16.6% Industrial Materials 68,762 74,090 +7.7% Devices 54,862 67,542 +23.1% Medical Technologies 36,011 45,622 +26.7% Others 8,088 8,343 +3.2% Operating profit * -3,817 5,486 Turn positive Operating
Slide 5: FY2024 Q4 (3 months) Results
FY2024 Q4 (3 months) Results (Millions of JPY) 2023 Q4 2024 Q3 2024 Q4 Results Results Results YoY QoQ Net sales 43,840 48,740 47,196 +7.7% -3.2% Industrial Materials 17,729 18,094 18,776 +5.9% +3.8% Devices 13,877 17,106 14,161 +2.0% -17.2% Medical Technologies 9,755 11,613 11,984 +22.8% +3.2% Othe
Slide 6: Industrial Materials: FY2024 Q4 (3 months) Results
Industrial Materials: FY2024 Q4 (3 months) Results Quarterly net sales and operating profit margin ■Sustainable Materials ●Operating profit margin (Metallized paper and others) ●Operating profit margin ■Decoration (Home appliances (excluding impairment loss) and others) ■Decoration (Mobility) ⚫Net s
Slide 7: Devices: FY2024 Q4 (3 months) Results
Devices: FY2024 Q4 (3 months) Results Quarterly net sales and operating profit margin ■Gaming devices, Handheld terminals (logistics related), ⚫ Net sales Mobility, Gas sensors and others ■Tablet devices ■Smartphones ●Operating profit margin ⚫ Tablet devices: Reactionary fall in 19,704 45.00% high-e
Slide 8: Medical Technologies: 2024 Q4 (3 months) Results
Medical Technologies: 2024 Q4 (3 months) Results Quarterly net sales and operating profit margin ⚫ Net sales ■Business media ●Operating profit margin ⚫ Medical devices CDMO: Strong demand ■Medical devices (Own brand) ■Medical devices (CDMO) 11,954 11,613 11,984 ⚫ Operating profit (Millions of JPY) ⚫
Slide 9: Progress of the 8th Medium-term Business Plan and FY2025 Plan
Progress of the 8th Medium-term Business Plan (2024-2026) (Business Portfolio Management to Enhance Corporate Value) FY2025 Plan ©2025 Nissha Group 9
Slide 10: PBR (PER×ROE) Analysis (FY2024)
PBR (PER×ROE) Analysis (FY2024) ⚫ PBR: Remains low ⚫ ROE (Profitability/Efficiency): Improved but profitability (operating profit) is low and below the shareholder capital cost (6-8%*) *Calculated by CAPM ROE (left axis) Operating profit margin (left axis) PBR (times) 17.6% 15% 9.0% 9.7% 4.7% 3.4% 5
Slide 11: Corporate value growth through sustainable growth and capital efficiency
Corporate value growth through sustainable growth and capital efficiency Market select ⚫ Selection of markets promising stable growth Sustainable Growth Optimized ⚫ Focus on 3 priority markets of PER (Growth Potential/Stability) diversification non-IT Devices Business portfolio ⚫ Balancing between g
Slide 12: Business growth, profitability improvement in 3 priority markets (non-IT Devices)
Market select/Optimized diversification Business growth, profitability improvement in 3 priority markets (non-IT Devices) ⚫ FY2024 results: Business in medical continued to grow, demand for sustainable materials recovered ⚫ FY2025 plan: Accelerate growth, improve profitability in 3 priority markets
Slide 13: FY2024: Expanded businesses in medical market
Market select/Optimized diversification FY2024: Expanded businesses in medical market Companywide efforts to be taken to tackle the medical market (medical devices, pharmaceuticals, and healthcare products) Medical Devices CDMO Injection molding CDMO for Medical Devices Acquisition of ⚫ Net sales 1.
Slide 14: Industrial Materials
Business portfolio management Industrial Materials 2024 ■Net sales (■Sustainable Materials (Metallized paper 100,000and others) ■Decoration (Home appliances and others) ⚫ Decoration: Steady demand for both mobility ■Decoration (Mobility)) (Millions of JPY) and home appliance 90,000●Operating profit
Slide 15: Devices
Business portfolio management Devices 2024 ⚫ Tablet devices 100,000 ■Net sales (■Gaming devices, Handheld terminals (logistics related), Mobility, Gas sensors and others ⚫ Demand recovered from 2023 ■Tablet devices ■Smartphones) (Millions of JPY) ●Operating profit margin ⚫ Reactionary fall on high-e
Slide 16: Medical Technologies
Business portfolio management Medical Technologies ■Net sales（■Business media ■Medical devices (Own brand) 2024 60,000 ■Medical devices (CDMO)) (Millions of JPY) ●Operating profit margin ⚫ Strong demand, improved profitability 50,000 +26.7% 45,622 46,500 ⚫ Acquisition of Isometric (micro molding for
Slide 17: FY2025 Plan
Business portfolio management FY2025 Plan ⚫ H1: Weak demand for tablet devices, and steady demand for Industrial Materials and Medical Technologies 250,000 ⚫ H2: Profitability improvement with demand recovery Full year 200,000 195,598 190,800 ■■Net sales (Millions of JPY) Half year ●Operating profit
Slide 18: FY2025 Plan: Increase in net sales and profit in Industrial Materials and Medical Technologies
FY2025 Plan ⚫ Increase in net sales and profit in Industrial Materials and Medical Technologies (Millions of JPY) 2024 2025 Full-year Full-year H1 H2 YoY Results Plan Plan Plan Net sales 195,598 190,800 92,400 98,400 -2.5% Industrial Materials 74,090 75,700 37,400 38,300 +2.2% Devices 67,542 55,200
Slide 19: Cash allocation and shareholder returns updates
Cash allocation Cash allocation and shareholder returns updates Cash-in Cash-out FY2024-2026 FY2024 FY2024-2026 FY2024 (3-year total) Result (3-year total) Result 70,000 Sale of non- As of February 2024 Shareholder operating assets Progress 79% JPY11.0 billion returns Progress 32% Dividend: JPY2.4 b
Slide 20: Dividend
Cash allocation Dividend ⚫Plan to continue annual dividend of 50 yen per share, looking to medium- to long-term growth Annual dividends per share 普通配当(中間) 普通配当(期末) Ordinary dividend (Interim) 記念配当 Ordinary dividend (Year-end)特別配当 Commemorative dividend Special dividend JPY50 JPY50 JPY50 JPY50 JPY40
Slide 21: Acquisition of treasury stock (2024)
Cash allocation Acquisition of treasury stock (2024) ⚫Reasons for acquisition: To improve shareholder return and capital efficiency Acquisition completed Ongoing Type of shares to be Common stock in Nissha Co., Ltd. Common stock in Nissha Co., Ltd. acquired Market purchase on the Tokyo Market purcha
Slide 22: The 8th Medium-term Business Plan Financial plan
The 8th Medium-term Business Plan Financial plan ⚫ Operating profit margin of 10% or higher in 3 priority markets of non-IT devices ⚫ Aiming for ROE of 9% or higher The 7 th Medium-term Business Plan The 8 th Medium-term Business Plan 2021 2022 2023 2024 2026 Plan 2026 Plan (Millions of JPY) 2025 Pl
Slide 23: Quality, production and digital transformation strategy for profitability
Initiatives enabling business portfolio management Quality, production and digital transformation strategy for profitability ⚫Operational Excellence ⚫ Enhancing value across the entire value chain ⚫Transforming operation processes ⚫Pursuit of lean operations from upstream ⚫ Global deployment of best
Slide 24: Human Resources Strategy
Initiatives enabling business portfolio management Human Resources Strategy 30.9% 31.6% 27.7% 28.6% ⚫Diverse human resources 27.0% 28.1% 23.9% 24.5% ⚫ Female manager ratio (Nissha non-consolidated) 8.9% 9.8% 5.9% 7.1% 2022年12月末 End of 2022 2023年12月末 2024年12月末 End of 2023 End 2025年1月1日 of 2024 Feb. 1
Slide 25: Human Resources Strategy
Initiatives enabling business portfolio management Human Resources Strategy ⚫The restructuring of the human resource portfolio has been progressing toward the Sustainability Vision 43.7% 24.0% 22.6% 48.3% 37.1% 48.3% As of End of 2020 End of 2024 January 8, 2025 Including employees of Shigaken Pharm
Slide 26: Responding to Climate Change
Initiatives enabling business portfolio management Responding to Climate Change ⚫ To reduce CO2 emissions from the Company (Scope 1 and 2) ⚫ To reduce total CO2 emissions by 30% in 2030 (Compared to 2020) → 2024: Approximately 50% Reduction ⚫ 2025: Setting a new goal and taking efforts in energy Ins
Slide 27: Capital investment, Depreciation and amortization, R&D
Capital investment, Depreciation and amortization, R&D Depreciation and Capital investment R&D amortization (Millions of JPY) (Millions of JPY) (Millions of JPY) 15,000 15,000 10,000 10,000 10,000 10,000 9,900 9,611 9,513 9,487 9,137 5,000 7,559 7,359 4,656 4,500 4,437 3,973 5,000 5,000 0 0 2022 0 2
Slide 28: (Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2024)
(Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2024) (Millions of JPY) Q1 Results Q2 Results Q3 Results Q4 Results Capital investment 2,043 2,808 2,601 2,158 Depreciation and 2,290 2,512 2,393 2,316 amortization M&A investment 10,158 540 0 3,328 R&D 1,086 1,137
Slide 29: Forward-looking statements notice
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