Daishinku Corp., · TSE:6962
Daishinku Corp — Q2 FY2025 Earnings Presentation
27 slides from Daishinku Corp's earnings presentation, Nov 27, 2024
Slide 1: Financial Results Briefing for the Second Quarter of FY2025
Financial Results Briefing for the Second Quarter of FY2025 (Ending March 31, 2025) November 27, 2024 DAISHINKU CORP. (Code: 6962) Executive Director, General Manager of Business Unit Div. and General Manager of Marketing & Sales Div. Shimpei Hasegawa Copyright © DAISHINKU CORP. All rights reserved.
Slide 2: Performance Report for the Second Quarter of FY2025 (YoY change)
Performance Report for the Second Quarter of FY2025 (YoY change) Higher revenue and profit (Operating profit) FY2024 FY2025 YoY change Unit: Million yen Q2 Q2 Increase/Decrease Rate of change Net sales 19,332 19,438 106 ↑ 0.5% Operating profit 901 916 15 ↑ 1.6% Ordinary profit 1,977 (78) (2,055) ↓ -
Slide 3: Sales by Market (YoY Change)
Sales by Market (YoY Change) IM: Industrial market CM: Consumer market AM: Automotive market TM: Telecommunications market I Sluggish demand for FA/robot FY2024 Q2 FY2025 Q2 applications due to restrained 19.3 <Net sales 19.4 M capital expenditures change rate> billion yen billion yen Strong sales f
Slide 4: Operating Profit Analysis of Increase/Decrease (YoY Change)
Operating Profit Analysis of Increase/Decrease (YoY Change) Unit: Million yen +15 million yen Operating Operating Profit Profit 901 916 Copyright © DAISHINKU CORP. All rights reserved. 4 /27
Slide 5: Performance Report for the Second Quarter of FY2025 (QoQ change)
Performance Report for the Second Quarter of FY2025 (QoQ change) Lower revenue and profit FY2025 FY2025 QoQ change Unit: Million yen Apr.-Jun. Jul.-Sep. Increase/Decrease Rate of change Net sales 9,827 9,611 (216) ↓ (2.2%) Operating profit 584 331 (253) ↓ (43.2%) Ordinary profit 1,004 (1,083) (2,087
Slide 6: Sales by Market (QoQ Change)
Sales by Market (QoQ Change) IM: Industrial market CM: Consumer market AM: Automotive market TM: Telecommunications market FY2025 FY2025 I Continued restraint in capital Apr.-Jun. Jul.-Sep. expenditures and adjustment of <Net sales M 9.8 change rate> 9.6 parts inventory billion yen billion yen 10% 1
Slide 7: Operating Profit Analysis of Increase/Decrease (QoQ Change)
Operating Profit Analysis of Increase/Decrease (QoQ Change) Unit: Million yen (253) million yen Operating Profit 584 Operating Profit 331 Copyright © DAISHINKU CORP. All rights reserved. 7 /27
Slide 8: Inventories Trends
Inventories Trends Unit: Billion yen 17.7 17.3 16.4 FY2025 Q2 Merchandise and Compared to the end of finished goods the previous fiscal year: ＋0.9 billion yen ● Merchandise and finished Work in goods reduced as planned process Synthetic ● Increase in work in progress quartz crystal (parts and materi
Slide 9: Capital Expenditures/Depreciation/R&D Expenses
Capital Expenditures/Depreciation/R&D Expenses Unit: Million yen YoY FY2024 FY2025 Increase/ Q2 Q2 Decrease Increase in capital expenditures Capital Expenditures 2,229 5,999 3,770 related to the headquarters and plant Depreciation 1,859 1,978 119 R&D expenses 1,073 1,037 (36) QoQ FY2025 FY2025 Incre
Slide 10: Non-operating expenses FX gains and losses
Non-operating expenses FX gains and losses ► FX rate compared to that at the end of Mar. 2024 Depreciation of yen at the end of Jun. Comparison of FX rate impacts FX gains Appreciation of yen at the end of Sep. FX losses Foreign exchange <Changes in the USD-JPY rate trends> gains End of Mar. End of
Slide 11: Earnings Forecast
Earnings Forecast No change from the plan at the beginning of the fiscal year FY2025 FY2025 FY2025 Unit: Million yen H1 H2 Full Year Forecast Net sales 19,438 20,562 40,000 Operating profit 916 584 1,500 Ordinary profit (78) 1,078 1,000 Profit attributable to owners of parent (187) 687 500 Capital E
Slide 12: Sales Forecast by Market
Sales Forecast by Market IM: Industrial market CM: Consumer market AM: Automotive market TM: Telecommunications market H1→H2 Sales Forecast Despite the impact of Chinese New Year in Q4, sales for T GPS/GNSS modules, etc. are expected to increase due to M an increase in production of TCXOs. Although
Slide 13: TCXO Forecast
TCXO Forecast Demand volume Sales volume Production Volume forecast H1: result / H2: forecast H1: result / H2: plan About 50% About About UP 20% 30% UP UP Demand expected to continue to grow (our estimate based on data of a research firm) Driven by GPS/GNSS modules, Booming for the time being Curren
Slide 14: 2nd Medium-term Business Plan — Sales targets and market trends
2nd Medium-term Business Plan — Sales targets and market trends — Net Sales (billion yen) Background of expansion of net sales in FY2027 Assumed FX rate (USD) Automated FY2025: 145 FY2026: 140 driving FY2027: 135 Meeting demand in Generative AI key growth Data center markets by offering a product We
Slide 15: Key Growth Markets: Automated driving
Key Growth Markets Automated driving — Number of crystal devices installed to double due to redundant designs — Requirements for Market trend crystal devices Vehicles becoming more digital like smartphones: Keeping vehicles up-to-date through software updates like smartphones Redundant designs:
Slide 16: Key Growth Markets: Generative AI and Data center
Key Growth Markets Generative AI and Data center — Spread of AI and explosive growth in demand for servers ― Requirements for Market trend crystal devices Robust server infrastructure required in line with the evolution of AI Increase in the number of optical transceivers capable of supporting f
Slide 17: Key Growth Markets: Wearable devices
Key Growth Markets Wearable devices — Full-scale spread of smartwatches and smart glasses — Requirements for Market trend crystal devices Multifunctionalization of wearable devices Expansion of AR-/VR-related applications and the healthcare market Need for miniaturization of electronic devices
Slide 18: Key Growth Markets: GPS/GNSS modules
Key Growth Markets GPS/GNSS modules — Expansion in drones, smart meters, and e-bikes — Requirements for Market trend crystal devices Growth of drone services, such as delivery to depopulated areas and inspections at height Expansion of demand for smart meters due to the global spread of next-gen
Slide 19: Forecast of volume by market in the crystal device industry
Forecast of volume by market in the crystal device industry (our estimate based on data of a research firm) The percentage of crystal oscillators is expected to increase in monetary amount Crystal Resonators Crystal Oscillators IC mounted in crystal resonators Crystal chip ＋ Ceramic package Oscill
Slide 20: Product lineup to meet the market requirements
Product lineup to meet the market requirements Crystal Oscillators Reliability High frequency Reliability High frequency Low noise Differential Output Arkh.2G Crystal Oscillators High-temperature Low power resistance consumption High-temperature Reliability High frequency Temperature Compensated res
Slide 21: Performance advantages of Arkh.2G
Performance advantages of Arkh.2G Installation of the Arkh series crystal resonators Capable of coping with high temperatures Excellent reliability, including aging (changes and narrow deviations over time) characteristics, because no adhesive is used inside the resonator element Arkh.2G SPXO narrow
Slide 22: Arkh.2G's price competitiveness
Arkh.2G’s price competitiveness Conventional products Arkh.2G Environmental Initiatives Improve productivity and reduce Additional floor space Accommodated within Plant CO2 emissions required the existing space Output increased by 3 Long-term cost (image) Facilities Many processes to 5 times with a
Slide 23: BCP system for Arkh.2G production
BCP system for Arkh.2G Present 2 production bases in Japan (assembly) Tottori Tokushima Production Div Production Div 8 production bases worldwide (assembly) Tottori Tokushima Production Div Production Div Future PT.KDS INDONESIA HARMONY ELECTRONICS HARMONY ELECTRONICS (DongGuan) CO.,LTD. (THAILAND)
Slide 24: Photolithography wafers — Arrangements to reduce the cost of Arkh.2G
Photolithography wafers — Arrangements to reduce the cost of Arkh.2G — Synthetic quartz crystal Lumbered At present Effective length X Y Z Number of Cost reduction by increasing the Y length Y length wafers produced Using 8-inch seed crystals, 2.6 times Using 8-inch seed crystals, 4-inch rough cryst
Slide 25: Photolithography products — Arrangements to ensure stable supply
Photolithography products — Arrangements to ensure stable supply — 2nd medium-term capital expenditure plan: Net Sales Photolithography/Arkh 15 billion yen in total over the 3 years Photolithography Production Arkh.3G capacity has Arkh.2G been increasing Headquarters and Plant DX, etc. Space-saving
Slide 26: 2nd Medium-term Business Plan — Final fiscal year
2nd Medium-term Business Plan — Final fiscal year — Operating profit (billion yen) Assumed FX rate (USD) Reference: 5.19 billion yen in FY2025: 145 Record-high profit in FY2027 operating profit in FY2022 FY2026: 140 5.5 FY2027: 135 Pursuing profitability: 3.2 53 billion yen in sales Pursuing efficie
Slide 27: Forward-looking statements
Forward-looking statements, such as performance forecasts for this fiscal year, are calculated based on information currently available and contain uncertainties. Actual performance may differ significantly from forward-looking statements due to changes in business conditions and other factors. In a