Piolax, Inc. · TSE:5988
Piolax — H1 FY2023 Earnings Presentation
31 slides from Piolax's earnings presentation, Dec 8, 2023
Slide 1: PIOLAX, INC. (Code: 5988)
December 8, 2023 (Fri.) PIOLAX, INC. (Code: 5988) Yukihiko Shimazu, President All Rights Reserved, Copyright © PIOLAX, INC. 1
Slide 2: Contents
Contents I. Progress of Medium-Term Management Plan 1. Management Indicators 2. Growth Strategies (Automotive Business / Medical Device Business) II. Capital Policy III. Promotion of ESG Management All Rights Reserved, Copyright © PIOLAX, INC. 2
Slide 3: Management Indicators - 1
Management Indicators - 1 Progress of medium-term management plan (FY23 to FY25) Sales (¥100 mil.) Operating profit Operating (¥100 mil.) profit ratio Plan Revision Plan Revision 800 720 20% 639 680 OPR (Plan) OPR (Revision) 630 100 584 87 Revised 15% 68 12.1% 6.6% 40 42 Revision 10.0% 39 10% Revisi
Slide 4: Management Indicators - 2: by Segment
Management Indicators - 2: by Segment <Upward revision factors> Recovery of automobile production. Strong performance in Japan and the U.S. Positive impact of yen depreciation. Progress in cost recovery. <2nd half forecast> Continued sluggishness in China will be covered by sales in Japan and the N.
Slide 5: Management Indicators - 2: by Segment
Management Indicators - 2: by Segment <Sales> Almost in line with the plan. <Operating income> Down from the plan mainly due to cost increase caused by soaring raw material prices and inventory disposal. (¥100 mil.) Operating (¥100 mil.) Sales 3 Operating profit profit ratio 10% Plan Forecast Plan F
Slide 6: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 6
Slide 7: Progress of Management Strategy: Automotive - 1
Progress of Management Strategy: Automotive - 1 Management strategy and priority issues Medium-term management plan Situations in FY23 1. Product and customer Accelerate response to CASE. Steady sales activities strategy (Explained later) ・Develop CASE parts and receive orders Sales ratio to non-JPN
Slide 8: Progress of Management Strategy: Automotive - 2
Progress of Management Strategy: Automotive - 2 Management strategy and priority issues Medium-term management plan Situations in FY23 4. Growth investment Build a new Moka Plant. Steady progress. strategy FY23: Complete Phase I Phase I construction completed in ・Develop infrastructure in Japan cons
Slide 9: CASE Products - 1
CASE Products - 1 Progressing development and sales expansion of CASE products 【Actions in FY23】 Target products Orders are increasing. FY23 plan will be achieved. Power supply port Sales expansion target: Battery-related (70%). Actuator Vibration ADAS*-related (10%). e-Axel-* and vibration control-
Slide 10: CASE Products - 2
CASE Products - 2 Development of products that contribute to Reducing vehicle weight and the environment Busbar Degassing valve for EV battery Dielectric parts made of copper. Secure battery's functions for a certain By changing the production method period of time in case of its malfunction. from p
Slide 11: Business Expansion with New Product Lines
Business Expansion with New Product Lines Change the name of “Fuel System Parts SBU” to challenge new product lines Fluid Controls SBU (As of December 1, 2023) • Respond to the changing needs of customers in the trend of EVs. • Increase customer understanding and awareness of our unique technologies
Slide 12: Diversification of Customers/Products
Diversification of Customers/Products Targets for FY25 ■Sales ratio of non-JPN OEMs: 17％ ■Per-car sales for new models: +10%（from former models) Sales by OEMs Efforts to increase per-car sales Non-JPN OEMs for new models JPN OEMs (¥100 mil.) Nissan For our priority models to be sold from 800 FY24 to
Slide 13: Capital Investment and Depreciation
Capital Investment and Depreciation Capital investment for future leap forward, mainly in domestic infrastructure development 【FY23】 Capital investment and depreciation Medium-term plan New Moka Plant: completion Total ¥26.6 billion in Dec., operation in Jan. Infrastructure in Japan (3 years) Postpo
Slide 14: Activities of overseas bases
Activities of overseas bases Diversification of products/customers (non-JPN OEMs) Europe (U.K. and Germany) (¥100 mil.) ・Enhance sales to German OEMs using the German Sales of overseas bases representative office. in the medium-term plan 500 ・Establish a sales company in the Netherland in FY24. 556
Slide 15: North America (U.S., Mexico)
North America (U.S., Mexico) Localization & Sales & operating profit ratio sales expansion to non-JPN OEMs (U.S. & Mexico) ■Optimal production 20% ・Promote localization: hose clamps, metal fasteners, fuel system parts. 150 ・Transfer production from the U.S. to Mexico. (¥100 mil.) ■Sales expansion ac
Slide 16: China
China Shifting China business strategies Sales & operating profit ratio In consideration of accelerating EV shift and (3 bases in China) 50% sluggish JPN OEMs. 1) Change target for sales expansion 150 ・Protect current business + Approach Chinese OEMs (emerging EV makers) 2) Review development system
Slide 17: European Continent
European Continent Sales expansion to German OEMs & Establish production system in Europe Establish a sales company in the Netherland in 2024. Aim to expand business in Europe where CASE and EV shift are advancing. Aim to get orders of CASE- and EV-related products in addition to our mainstay interi
Slide 18: Infrastructure Development in Japan - 1
Infrastructure Development in Japan - 1 Infrastructure development for future growth – New Moka Plant Construction Phases I and II Full-scale operation for Phase I area: January 2024 Investment: ¥10.1 billion (FY23 to FY25) – increased due to facility expansion and soaring material prices Total floo
Slide 19: Infrastructure Development in Japan - 2
Infrastructure Development in Japan - 2 Infrastructure development for future growth – New Head Office Global Head Office that transmits Piolax corporate bland to the world for a long time – Sustainable office Consolidate functions of head office and Yokohama Technical Center. Promote workstyle refo
Slide 20: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 20
Slide 21: 1H Result and Full-Year Forecast in FY23
1H Result and Full-Year Forecast in FY23 (Unit: ¥1 mil.) Achieve- Full-year Full-year 1H budget 1H result FY22 result Growth Difference ment budget forecast Sales 2,213 2,267 102.4% 2,150 5.4% 4,675 4,731 56 Operating △54 △58 - 100 - 50 20 △30 profit <Causes of decrease in profit> • Deteriorated dir
Slide 22: Medium-Term Plan (FY23 – FY25)
Medium-Term Plan (FY23 – FY25) 1. Introduce differentiated products to specific markets (Differentiation) 2. Speed up launch and enhance lineup of new products 3. Expand overseas sales channels (Strengthen regulatory compliance in each country) 4. Enhance sales network in Japan 5. Respond to digital
Slide 23: New Medical Product “SeekMaster25”
New Medical Product “SeekMaster25” Expand share with the new digestive endoscope guidewire Realize ultimate slipperiness by reducing contact surface Launch in May 2023 with other medical devices used in combination in Japan by high-ridge coating technologies Medium-term sales plan (FY25) Appeal poin
Slide 24: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 24
Slide 25: Capital Policy - 1
Capital Policy - 1 Realization of management conscious of cost of capital and stock price – toward PBR 1x • Our capital policy in FY22 was reviewed. Strive to 3-year capital policy (FY23 to FY25) increase corporate value by practicing efficient management with an awareness of cost of capital Curb th
Slide 26: Capital Policy - 2
Capital Policy - 2 Dividend (Unit: yen) Previous Revision To achieve 8% ROE soon forecast in Nov. Increase return on capital, enhance Interim 55.00 69.00＊ shareholder returns, and control Year-end 47.00 50.00 equity capital oppressively. Annual 102.00 119.00 ROE trend Dividend and payout ratio 10% (
Slide 27: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 27
Slide 28: Efforts for Carbon Neutrality
E Efforts for Carbon Neutrality Introduction of renewable energy Moka Plant (Tochigi prefecture) and Fuji Plant (Shizuoka prefecture) have started to use renewable energy 100% since April 2023, and Piolax Medical Devices has since October 2023. Installation of solar panels The new Moka Plant will us
Slide 29: Initiatives for Diversity
S Initiatives for Diversity Diversity-related data FY21 FY22 FY23 targets Percentage of female managers 3.5% 3.9％ 5% or more Gender wage differential (Regular workers) ー 79.1％* Decrease from FY22 Percentage of male employees taking 18.2% 55.6％ Increase from FY22 maternity leave *Gender wage differen
Slide 30: Strengthening Governance
G Strengthening Governance Aggressive Management Aiming to enhance corporate value over the medium to long term ■2023 Review the executive compensation system. Introduce a performance- linked factor → Expanded to executive officers ■2022 Increase the number of outside directors (3 to 4) (Female dire
Slide 31: END
END Forward-looking statements in this document are based on information available to our company in announcing the financial results for the second quarter of FY23 and on certain assumptions deemed reasonable, and their achievements are not intended to be promised by our company. Actual results may