Nisshinbo Holdings Inc. · TSE:3105
Nisshinbo — FY2019 Earnings Presentation
31 slides from Nisshinbo's earnings presentation, Feb 14, 2020
Slide 1: Financial Results for FY2019
Financial Results for FY2019 (Jan. 2019 – Dec. 2019) Nisshinbo Holdings Inc. Feb. 14, 2020
Slide 2: Table of Contents
Table of Contents 1. FY2019 Results Overview P.3 2. Outlook for FY2020 P.11 3. Reference Materials P.18 4. Appendix P.23 The earnings forecasts contained in these materials are based on information currently available to the Company and are not promises of achievement. 2
Slide 3: 1. FY2019 Results Overview
NSSHNBO 1. FY2019 Results Overview
Slide 4: 1-1. Financial Highlights (y/y)
1-1. Financial Highlights (y/y) （mil. yen） FY2018 FY2019 Change (adjusted) results rate Net sales 514,933 509,660 -5,272 ▲1.0% Operating income 4,784 6,482 +1,697 +35.5% Ordinary income 8,642 11,703 +3,060 +35.4% Net income Attributable to -1,366 -6,604 -5,237 - Owners of Parent Year on year ■ Net S
Slide 5: 1-2. FY2019 Net sales
1-2. FY2019 Net sales （mil. yen） FY2018 FY2019 Change (adjusted) results rate Wireless comms 144,762 152,212 +7,450 +5.1% Microdevices 66,736 65,285 -1,450 ▲2.2% Brakes 140,171 131,338 -8,833 ▲6.3% Precision instruments 65,921 65,428 -493 ▲0.7% Chemicals 11,563 9,390 -2,172 ▲18.8% Textiles 53,653 49
Slide 6: 1-2. FY2019 Net sales (graph)
1-2. FY2019 Net sales (graph) Millions of yen 6
Slide 7: 1-3. FY2019 Operating Income
1-3. FY2019 Operating Income （mil. yen） FY2018 FY2019 Change (adjusted) results rate Wireless comms -493 4,100 +4,594 - Microdevices 2,234 256 -1,977 ▲88.5% Brakes -916 -3,340 -2,423 - Precision instruments 1,628 879 -748 ▲46.0% Chemicals 2,381 1,649 -732 ▲30.7% Textiles 1,306 1,036 -269 ▲20.6% Real
Slide 8: 1-3. FY2019 Operating Income (graph)
1-3. FY2019 Operating Income (graph) Millions of yen 8
Slide 9: 1-4. Ordinary income to net income
1-4. Ordinary income to net income （mil. yen） FY2018 FY2019 Change (adjusted) results rate Operating income 4,784 6,482 +1,697 +35.5% Non-operating income 8,166 7,937 -228 ▲2.8% Non-operating expenses 4,307 2,716 -1,591 ▲36.9% Ordinary income 8,642 11,703 +3,060 +35.4% Extraordinary income 3,873 4,7
Slide 10: 1-4. Ordinary income to net income (graph)
1-4. Ordinary income to net income(graph) Millions of yen 10
Slide 11: 2. Outlook for FY2020
NSSHNBO 2. Outlook for FY2020 11
Slide 12: 2-1. Highlights of forecast for FY2020
2-1. Highlights of forecast for FY2020 （mil. yen） FY2019 FY2020 Change FC rate Net sales 509,660 540,000 +30,339 +6.0% Operating income 6,482 14,000 +7,517 +116.0% Ordinary income 11,703 18,000 +6,296 +53.8% Net income Attributable -6,604 13,000 +19,604 - to Owners of Parent Year on year ■ Net Sales
Slide 13: 2-2. Sales forecast for FY2020
2-2. Sales forecast for FY2020 （mil. yen） FY2019 FY2020 Change FC rate Wireless comms 152,212 160,000 +7,787 +5.1% Microdevices 65,285 70,000 +4,714 +7.2% Brakes 131,338 136,000 +4,661 +3.5% Precision instruments 65,428 65,000 -428 ▲0.7% Chemicals 9,390 13,000 +3,609 +38.4% Textiles 49,505 52,000 +2
Slide 14: 2-2. Sales forecast for FY2020 (graph)
2-2. Sales forecast for FY2020(graph) Millions of yen 14
Slide 15: 2-3. Operating Income forecast for FY2020
2-3. Operating Income forecast for FY2020 [Wireless comms] Expected to decrease due to the reversal of fixed costs restrained in the previous fiscal year. [Microdevices] Expected to increase due to recovery of semiconductor market. [Brake] Expected to recover due to the reorganization of TMD. [Real
Slide 16: 2-3. Operating Income forecast for FY2020 (graph)
2-3. Operating Income forecast for FY2020 (graph) Millions of yen 16
Slide 17: 2-4. Brake business outlook
2-4. Brake business outlook ◆ Nisshinbo Brake ・ Sales are expected to increase due to strong orders for copper-reduced and copper-free friction materials. ・ Operating profit is expected to be on par with the previous fiscal year, as depreciation expenses are expected to be higher due to capital expe
Slide 18: 3. Reference Materials (Management Policies)
3. Reference Materials (Management Policies) 18
Slide 19: Nisshinbo Group Management Policy
Nisshinbo Group Management Policy Nisshinbo Group Corporate Philosophy Challenge and Change! For the creation of future of Earth and People. Business policies guided by this philosophy Realize smart society as an Environment and Energy Company group. Formulate growth strategies to realize business p
Slide 20: Founding spirit of ESG and businesses for SDGs targets
Nisshinbo Group Management Policy ◆ Founding spirit of ESG and businesses for SDGs targets In 2006, we identified global environmental protection as our E top-priority social issue, and set the environment and energy as our business policies and reformed our business. Spirit of contributing to socie
Slide 21: Toward the creation of cash flow
Nisshinbo Group Management Policy ◆ Toward the creation of cash flow ● Development of new business and launch of new products ● Selective concentration on business and product portfolio ● Strategic pricing and thorough cost control ● Continuous cost reduction ● Inventory reduction / Early collection
Slide 22: Group-wide Activities for Corporate Growth
Nisshinbo Group Management Policy ◆ Group-wide Activities for Corporate Growth ● Digital transformation ～ Create data business by promoting AI and IoT ● Continuous Kaizen activities ● Pursue diversity of businesses and people ● Strengthen safety and health activities ● Promote environmental manageme
Slide 23: 4. Appendix
NSSHNBO 4. Appendix 23
Slide 24: 4-1. FY2018-2020 Wireless comms, Microdevices
4-1. FY2018-2020 Wireless comms Microdevices 24
Slide 25: 4-2. FY2018-2020 Brakes, Precision instruments
4-2. FY2018-2020 Brakes Precision instruments 25
Slide 26: 4-3. FY2018-2020 Chemicals, Textiles
4-3. FY2018-2020 Chemicals Textiles 26
Slide 27: 4-4. FY2018-2020 Real estate, Other businesses, Corporate costs
4-4. FY2018-2020 Real estate Other businesses, Corporate costs 27
Slide 28: 4-5. Performance by Segment ①
4-5. Performance by Segment ① FY2018 FY2019 FY2020 Wireless and FY2019 FC Revised FC (Oct. 31) FY2018 adjusted FY2019 Change FY2020 FC communications Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Marine systems 37,100 -900 36,200 -600 33,210 -2,727 3
Slide 29: 4-6. Performance by Segment ②
4-6. Performance by Segment ② FY2018 FY2019 FY2020 FY2019 FC Revised FC (Oct. 31) FY2018 adjusted FY2019 Change FY2020 FC Precision Instruments Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Precision parts 17,500 800 16,300 400 18,920 746 15,775 382
Slide 30: 4-7. Performance by Segment ③
4-7. Performance by Segment ③ FY2018 FY2019 FY2020 FY2019 FC Revised FC (Oct. 31) FY2018 adjusted FY2019 Change FY2020 FC Real Estate Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Total 6,000 2,700 5,500 3,200 7,182 4,042 11,655 8,163 4,472 4,120 20,
Slide 31: Abbreviations for Nisshinbo group companies
Abbreviations for Nisshinbo group companies 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. N