Dkk Co.,ltd. · TSE:6706
Dkk Co.,ltd — H1 FY2022 Earnings Presentation
33 slides from Dkk Co.,ltd's earnings presentation, Nov 30, 2022
Slide 1: First Half Results for the Fiscal Year Ending March 31, 2023
First Half Results for the Fiscal Year Ending March 31, 2023 November 30, 2022
Slide 2: Table of contents
Table of contents 1. RESULT HIGHLIGHTS 2. FULL-YEAR OUTLOOK 3. RESULTS AND FULL-YEAR OUTLOOK OF EACH BUSINESS FIELD 4. TOPICS 1
Slide 3: 1. Result Highlights
1. RESULT HIGHLIGHTS = ADdkKK Co.Ltd
Slide 4: Consolidated Net Sales
Consolidated Net Sales > Net sales for Telecommunication Business decreased due mainly to slumping demand in some areas, delays in construction schedules and longer lead time for orders for components. > Net sales for Radio Frequency Business decreased slightly affected by longer lead time for order
Slide 5: Consolidated Operating Income
Consolidated Operating Income › Consolidated operating income dropped due to a fall in net sales, as well as spikes in material prices, procurement costs, power bills, etc. Consolidated operating income -1.19 billion yen YoY change Down 0.91 billion yen 4
Slide 6: Segment Income (Consolidated)
Segment Income (Consolidated) › Profit decreased for Telecommunication Business due to a drop in net sales and spikes in materials and logistics costs. › Profit rose for Radio Frequency Business thanks to efforts to improve operational efficiency, despite a spike in material prices. Telecommunicatio
Slide 7: Overview of Consolidated First Half Results
Overview of Consolidated First Half Results › Ordinary income fell 0.72 billion yen year on year as operating income decreased. › Similarly, quarterly net income decreased 0.65 billion yen year on year. ■ Overview of 1H consolidated results (Millions of yen) 1H FY3/22 1H FY3/23 YoY change results re
Slide 8: 2. Full-Year Outlook
2. FULL-YEAR OUTLOOK 7
Slide 9: Consolidated Net Sales and Operating Income Outlook
Consolidated Net Sales and Operating Income Outlook › We expect full-year net sales of 37.0 billion yen, unchanged from the initial forecast. › We see the impact of a spike in material prices to remain, just as in the first half, but expect full-year operating income to increase slightly. 8
Slide 10: Segment Outlook (Consolidated)
Segment Outlook (Consolidated) › We expect Telecommunication Business’ margins to drop, accounting for the risk of spikes in material prices and changes in product makeup. › We expect both revenues and profits increase for the Radio Frequency Business in view of a recovery trend in capital expenditu
Slide 11: 3. Results and Full-Year Outlook of Each Business Field
3. RESULTS AND FULL－YEAR OUTLOOK OF EACH BUSINESS FIELD 10
Slide 12: Mobile Communications-Related Field
Mobile Communications-Related Field Telecommunication 1H Net sales dropped due mainly to revisions in customer equipment plans and delays in construction schedules caused by longer lead time for orders for components. Full year We expect full-year net sales to fall as we anticipate a similar trend w
Slide 13: Fixed Wireless Communication-Related Field
Fixed Wireless Communication-Related Field 1H Orders and construction schedules were pushed back due to longer lead times for orders for materials and components, but demand recovered from a slump caused by the pandemic. Full year We expect net sales to increase year on year as orders show a recover
Slide 14: Broadcasting-Related Field
Broadcasting-Related Field 1H There was no major change in capital expenditure-driven demand from broadcasters, and net sales were largely unchanged from the year-earlier level. Full year Full year We expect full-year net sales to increase 1.0 billion yen year on year supported by a recovery trend i
Slide 15: Solutions-Related Field
Solutions-Related Field 1H In the first half, we won orders for the Ministry of Internal Affairs and Communications’ local 5G development and testing project. Full year We plan to aggressively make investments and develop demand to expand business in this new growth field. 1H results 0.01 billion ye
Slide 16: Other Field
Other Field 1H Net sales were largely unchanged from the year-earlier level as a demand trend similar to last year’s prevailed. Full year We expect net sales to increase as we anticipate demand increases mainly for solar power equipment and construction work to install lighting. 1H results 1.9 billi
Slide 17: Induction Heating Equipment-Related Field
Induction Heating Equipment-Related Field 1H Net sales remained unchanged from a year-earlier level, affected by longer lead times for component orders, although capital expenditure-driven demand was on a recovering trend. Full year We expect full-year net sales to show a significant year-on-year in
Slide 18: Contract Heat Treating Service-Related Field
Contract Heat Treating Service-Related Field 1H Net sales remained largely unchanged from a year-earlier level, affected by production 1H adjustment moves by automakers. Full year As we anticipate a similar trend will continue, we expect full-year net sales to remain unchanged from a year-earlier le
Slide 19: New Radio Frequency Areas Business-Related Field
New Radio Frequency Areas Business-Related Field 1H 1H There are a number of projects in a testing phase currently but none has generated sales yet. Full year We will work to win orders in the second half by continuing aggressive sales efforts. 1H results - billion yen YoY change - (-) Full-year for
Slide 20: 4. Topics
4. TOPICS = A DdKK Co. Lt
Slide 21: Initiatives in Telecommunication Business (1)
Initiatives in Telecommunication Business (1) › Started delivery of the radio unit for NTT DOCOMO’s commercial 5G services. › DKK’s first delivery of wireless equipment, marking our full-fledged entry in the wireless equipment market. Radio unit for 3.4 GHz-band, compliant to the O-RAN fronthaul int
Slide 22: Initiatives in Telecommunication Business (2)
Initiatives in Telecommunication Business (2) › Promote to develop antennas for frequencies higher than millimeter waves, with Beyond 5G and 6G in mind. › Aim to develop more advanced antennas through joint development projects with material makers. Future initiatives in Telecommunication Business [
Slide 23: Initiatives in Telecommunication Business (3)
Initiatives in Telecommunication Business (3) › Working with other companies to promote local 5G business, aiming to contribute to smartification. › Offering solutions combining our network-building technologies and other companies’ technologies. Initiatives in local 5G business [Tests on robot cont
Slide 24: Initiatives in Radio Frequency Business
Initiatives in Radio Frequency Business › Designed and developed superheated steam equipment. Can make equipment suggestions suited to processed items. › Currently, working on projects with a focus on industrial waste disposal and processing foods. DKK’s superheated steam equipment • Generate superh
Slide 25: Initiatives in Improving Governance
Initiatives in Improving Governance › Think of how the Board of Directors should be and introduce improvements in focused effort. › Put effort also into raising awareness about compliance of organization. Towards improvement and enhancement of corporate governance Board of Directors Organization • E
Slide 26: Initiatives on Workplace Culture and Environment
Initiatives on Workplace Culture and Environment › Conducted an employee satisfaction survey and, going forward, analyze the survey result and introduce measures to improve workplace environment. › Disclosed Scope 1 and 2 data for FY2019–FY2021; work to calculate Scope 3 currently underway. Toward b
Slide 27: Initiatives for Capital Strategy
Initiatives for Capital Strategy › Formulate specific execution plans for investment strategies disclosed in Medium-Term Business Plan. › Actively make both capital and development investments to optimize business portfolio. To achieve optimum capital composition and support investment strategies to
Slide 28: Shareholder Returns
Shareholder Returns › Maintain active shareholder return measures disclosed in Medium-Term Business Plan. › Share buybacks announced in February this year completed; the portion in excess of the total number of shares issued by 10% canceled. Policy on shareholder returns • No change in target set in
Slide 29: Appendix
APPENDIX = A DdKK Co. Lt
Slide 30: Overview of Consolidated FY3/23 Outlook
Overview of Consolidated FY3/23 Outlook ■ Overview of full-year consolidated outlook (Millions of yen) FY3/22 FY3/23 YoY change results forecasts Amount Percentage Net sales 33,968 37,000 3,031 8.9% Telecommunication 25,908 26,710 801 3.1% Radio Frequency 7,959 10,180 2,220 27.9% Operating income 53
Slide 31: Results and Outlook of Consolidated Net Sales
Results and Outlook of Consolidated Net Sales ■ Overview of consolidated results (Millions of yen) FY3/22 FY3/23 YoY change 1H 2H Full year 1H 2H Full year 1H 2H Full year (results) (results) (results) (results) (forecasts) (forecasts) Amount Percentage Amount Percentage Amount Percentage Net sales
Slide 32: Results and Outlook of Nonconsolidated Net Sales
Results and Outlook of Nonconsolidated Net Sales ■ Overview of nonconsolidated results (Millions of yen) FY3/22 FY3/23 YoY change 1H 2H Full year 1H 2H Full year 1H 2H Full year (results) (results) (results) (results) (forecasts) (forecasts) Amount Percentage Amount Percentage Amount Percentage Net
Slide 33: Notes on Earnings Forecasts
Notes on Earnings Forecasts Figures included in this document that are related to descriptions, including plans and policies and not past facts, are forecasts regarding future earnings. They are all calculated based on management assumptions and views based on information grasped by the company at t