Nisshinbo Holdings Inc. · TSE:3105
Nisshinbo — FY2017 Earnings Presentation
24 slides from Nisshinbo's earnings presentation, May 11, 2018
Slide 1: Financial Results for FY2017
Financial Results for FY2017 (Apr. 2017 – Mar. 2018) Nisshinbo Holdings Inc. May 11, 2018
Slide 2: Highlights
HIGHLIGHTS （mil. yen） FY2016 FY2017 Change FY2017 Compared to plan Results Results Rate Plan Rate Net sales 527,274 512,047 -15,227 ▲2.9% 520,000 -7,953 ▲1.5% Operating income 4,890 15,085 +10,195 +208.5% 15,000 85 +0.6% Ordinary income 10,556 19,700 +9,144 +86.6% 20,000 -300 ▲1.5% Attributable to O
Slide 3: Net sales breakdown
Net sales breakdown （mil. yen） FY2016 FY2017 Change FY2017 Compared to plan Results Results Rate Plan Rate Electronics 190,851 193,620 +2,769 +1.5% 204,000 -10,380 ▲5.1% Brakes 146,061 154,204 +8,143 +5.6% 154,000 204 +0.1% Precision instruments 60,687 64,918 +4,231 +7.0% 61,000 3,918 +6.4% Chemical
Slide 4: Net sales (year on year)
Net sales (year on year) NSSSHNBO 550,000 545,000 540,000 535,000 530,000 525,000 520,000 - 515,000 + 510,000 + 505,000 - 500,000 (mil. yen) FY2017 Net sales(y/y) | 527,274 | 512,047 4 a m oD 7 9 a a g Ey 3 m @ g 3 3 z 3 22 3 g 8 z FA BS x ia a So 3 = o g 54 a g g 8 £38. 2 3 g > 5s S = 8 533 a & a f
Slide 5: Operating income breakdown
Operating income breakdown （mil. yen） FY2016 FY2017 Change FY2017 Compared to plan Results Results Rate Plan Rate Electronics -3,240 3,021 +6,262 - 2,700 321 +11.9% Brakes -7 6,119 +6,126 - 6,300 -181 ▲2.9% Precision Instruments 1,048 1,724 +676 64.4% 1,800 -76 ▲4.2% Chemicals 1,309 2,112 +803 61.3%
Slide 6: Operating income (year on year)
Operating income (year on year) 6
Slide 7: Net sales in Electronics (year on year)
Net sales in Electronics (year on year) ■NJR recorded an increase in net sales on favorable demand for automotive and industrial- use semiconductors. 7
Slide 8: Operating income in Electronics (year on year)
Operating income in Electronics (year on year) ■JRC moved into the black supported by sales growth in the marine systems business and the communications equipment business, company-wide reductions in fixed costs, and other factors. 8
Slide 9: Ordinary income to net income
Ordinary income to net income （mil. yen） FY2016 FY2017 Change Results Results Rate Operating income 4,890 15,085 +10,195 +208.5% Non-operating income 9,741 8,965 -776 ▲8.0% Non-operating expenses 4,075 4,350 +275 +6.7% Ordinary income 10,556 19,700 +9,144 +86.6% Extraordinary income 6,143 20,808 +14
Slide 10: Net sales and ROE
Net sales and ROE Goals for FY2025 Net sales: 1 tri. yen ROE: 12% 10
Slide 11: Plan for FY2018 (Apr.2018 – Dec. 2018)
Plan for FY2018 (Apr.2018 – Dec. 2018) Change fiscal year-end from March to December starting FY2018 (subject to approval at shareholder meeting in June). As FY2018 will be a nine-month period, we present below for reference purposes an adjusted plan for the 12-month period through March 2019. （mil.
Slide 12: Net sales plan for FY2018
Net sales plan for FY2018 （mil. yen） FY2018 FY2017 Ref.) Adjusted plan Change Plan Results 2018/4～2019/3 Rate Electronics 153,000 193,620 234,000 +40,380 +20.9% Brakes 146,000 154,204 151,000 -3,204 ▲2.1% Precision Instruments 62,000 64,918 66,000 +1,082 +1.7% Chemicals 8,000 11,285 11,000 -285 ▲2.5
Slide 13: Operating income plan for FY2018
Operating income plan for FY2018 （mil. yen） FY2018 FY2017 Ref.) Adjusted plan Change Plan Results 2018/4～2019/3 Rate Electronics -2,900 3,021 7,700 +4,679 154.9% Brakes 4,300 6,119 5,100 -1,019 ▲16.7% Precision Instruments 2,000 1,724 2,200 +476 27.6% Chemicals 1,400 2,112 2,100 -12 ▲0.6% Textiles 1
Slide 14: Accelerating growth strategies (since April 2017)
Efforts since last year Accelerating growth strategies (since April 2017) ■Allocate management resources to automotive business and businesses related to the creation of an ultra-smart society as a priority. ■Engage in M&A, and rapidly strengthen our business foundation. ■Conversions into wholly own
Slide 15: Accelerating growth strategies (since October 2017)
Efforts since last year Accelerating growth strategies (since October 2017) (4) Converted JRC into a wholly owned subsidiary. (5) Developed commercial application for non-platinum carbon alloy catalyst. Continued development aimed at adoption in fuel cell vehicles. Accelerated development of carbon
Slide 16: Accelerating growth strategies (since 2018)
Efforts since last year Accelerating growth strategies (since 2018) (7) Transfer drum brake (foundation brake) business. (8) Establish JRC Mobility. Broadly expand proprietary technology in mobility fields outside the automotive sector: ships, aircraft, railway, industrial machinery, drones, etc. Au
Slide 17: Corporate governance・Stakeholders (since April 2017)
Efforts since last year Corporate governance・Stakeholders (since April 2017) (1) Abolished advisor posts. (2) Appointed additional accounting auditor. Enhanced audits for global business activities. (3) Incorporated as constituent in ESG indices. (4) Published Nisshinbo Integrated Report. (5) Contin
Slide 18: Corporate governance・Stakeholders (since October 2017)
Efforts since last year Corporate governance・Stakeholders(since October 2017) (6) Conducted share buyback (roughly 20.0 bil. yen). (7) Selected as “Excellent Integrated Report” and “Most- Improved Integrated Report” nominated by GPIF asset managers entrusted with domestic equity investment. (8) Chan
Slide 19: Appendix Segment information①
Appendix Segment information① FY2018 Plan FY2017 Plan FY2017 Results Change FY2016 Results 2018.4-12 Electronics Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Marine systems 31,700 -600 38,100 -1,820 33,523 -2,287 943 2,549 32,580 -4,836 Communications equipment 10,
Slide 20: Appendix Segment information②
Appendix Segment information② FY2018 Plan FY2017 Plan FY2017 Results Change FY2016 Results 2018.4-12 Brakes Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. JPN NISB 13,000 700 26,100 1,800 25,134 870 76 -616 25,058 1,486 NISB Subsidiaries 37,800 2,800 43,300 4,300 44,
Slide 21: Appendix Segment information③
Appendix Segment information③ FY2018 Plan FY2017 Plan FY2017 Results Change FY2016 Results Precision instruments 2018.4-12 Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. NISM 9,200 400 8,500 250 6,994 -139 -1,922 -347 8,916 208 Precision Subsidiaries 7,600 700 6,200
Slide 22: Appendix Segment information④
Appendix Segment information④ FY2018 Plan FY2017 Plan FY2017 Results Change FY2016 Results 2018.4-12 Textiles Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. NIST 15,200 100 21,900 700 19,519 314 -1,416 -155 20,935 469 JPN Subsidiaries 21,700 900 29,200 1,400 27,868 8
Slide 23: Appendix Segment information⑤
Appendix Segment information⑤ FY2018 Plan Other business, 2018.4-12 FY2017 Plan FY2017 Results Change FY2016 Results Corporate costs Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Other business 15,000 200 24,000 300 24,973 45 1,357 136 23,616 -91 Corporate costs -5,
Slide 24: Glossaries
Glossaries NISH: Nisshinbo Holdings Inc. Consolidated subsidiaries of NISH. JRC: Japan Radio Co., Ltd. NJR: New Japan Radio Co., Ltd. REDC: Ricoh Electronic Devices Co., Ltd. NISB: Nisshinbo Brake Inc. NISM: Nisshinbo Mechatronics Inc. NISC: Nisshinbo Chemical Inc. NIST: Nisshinbo Textile Inc. 24