Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — Q3 2023 Earnings Presentation
16 slides from Nissha Co.ltd's earnings presentation, Nov 9, 2023
Slide 1: Financial Results for FY2023 Q3
Financial Results for FY2023 Q3 Ended September 30, 2023 November 9, 2023 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Highlights
Highlights FY2023 Q3 Results (9 months ended) ⚫ Tailwinds ⚫ Industrial Materials: Steady product demand for mobility. ⚫ Medical Technologies: Steady product demand for medical devices CDMO continued. ⚫ Headwinds ⚫ Industrial Materials: Inventory adjustments in supply chain have been prolonged for me
Slide 3: FY2023 Q3 (3 months) Results
FY2023 Q3 (3 months) Results (Millions of JPY) 2022 Q3 2023 Q2 2023 Q3 Results Results Results YoY QoQ Net sales 53,165 40,574 40,879 -23.1% +0.8% Industrial Materials 18,777 16,975 16,983 -9.6% +0.0% Devices 23,647 13,031 13,146 -44.4% +0.9% Medical Technologies 8,870 8,793 8,937 +0.8% +1.6% Others
Slide 4: FY2023 Q3 (9 months) Results
FY2023 Q3 (9 months) Results (Millions of JPY) 2022 Q3 2023 Q3 Results Results YoY Net sales 141,382 123,885 -12.4% Industrial Materials 54,947 51,033 -7.1% Devices 57,251 40,985 -28.4% Medical Technologies 23,481 ✔26,255 +11.8% Others 5,702 5,610 -1.6% Operating profit 9,680 -414 - Operating profit
Slide 5: Industrial Materials
Industrial Materials ⚫ Decoration (Mobility): Steady product demand ⚫ Metallized paper: Inventory adjustments in supply chain have been prolonged Net sales trend ■ ■ Sustainable Materials (Metallized paper and others) 30,000 by application ■ ■ Decoration (Home appliances and others) ■ ■ Decoration (
Slide 6: Demand trend for metallized paper (index)
Demand trend for metallized paper (index) ⚫ Compressing inventories in supply chain for packaging paper continued ⚫ Demand in 2023 H2: Signs to hit the lowest point Stockpiling continued Net sales in 2020 Q1 ●Nissha (Metallized paper) Net sales Price increased due to ＝100 ■Packaging paper manufactur
Slide 7: Devices
Devices ⚫Weak demand for tablet devices and handheld terminal continued Net sales trend ■ ■ Potable game players, Handheld terminals (logistics related), Mobility, ■ Gas sensors and others 30,000by application ■ ■ Tablet devices ■ ■ Smartphones 23,647 22,717 (Millions of JPY) 20,000 17,645 7,041 7,2
Slide 8: Demand trend for tablet devices
Demand trend for tablet devices ⚫Excessive demand from supply chain in 2022 H2 ⚫Weak demand continues in 2023 ■Nissha: Net sales of touch sensor for tablet devices (left axis) (Millions of JPY) Excessive demand (Millions of unit) ●All OEM: Shipping volume of tablet final products (right axis)* 16,00
Slide 9: Medical Technologies
Medical Technologies ⚫Steady product demand for medical devices CDMO Net sales trend ■ ■ Business media by application ■ ■ Medical devices (Own brand) ■ ■ Medical devices (CDMO) (Millions of JPY) 10,000 8,976 8,937 8,870 8,525 8,793 7,924 2,544 2,466 2,264 2,463 6,685 2,398 2,245 1,858 1,944 1,825 1
Slide 10: Reinforcement of medical devices CDMO
Reinforcement of medical devices CDMO Capital and business partnership with EndoTheia, Inc. ⚫ Make a great contribution to operability improvement of endoscopic devices EndoTheia, Inc. overview ⚫ Create value with small precision parts Headquarters Tennessee, USA Tip of endoscope Number of employees
Slide 11: Reinforcement of medical devices CDMO
Reinforcement of medical devices CDMO Contribute to the downsizing and operability of endoscopes and surgical robots For endoscopic devices Nissha value chain Design Development Production Pursue Productivity Create Added Value and Efficiency For surgical robots NEXT STEP Incorporate processing tech
Slide 12: Revision of the forecast (Full-year)
Revision of the forecast (Full-year) ⚫ Product demand for metallized paper in Industrial Materials and tablet devices in Devices expected to be lower than previous forecast ⚫ Exchange rate for Q4: JPY130/$ ⚫ Foreign exchange sensitivity in Q4 (impact of 1 JPY/$ change): JPY 120 million yen for net s
Slide 13: Prospects for 2024 (next year)
Prospects for 2024 (next year) Demand for Industrial Materials and Devices will recover after bottoming out in 2023 Business Products Markets Demand trend (vs. 2023 forecast) Industrial Decoration Mobility Solid demand continues Materials (interior/exterior decoration) Home appliances Recover slowly
Slide 14: Acquisition of treasury stock
Acquisition of treasury stock ⚫Reason for acquisition: To improve shareholder return and engage in flexible capital policies Overview Type of shares to be acquired Common stock in Nissha Co., Ltd. Market purchase on the Tokyo Stock Method of acquisition Exchange The number of shares to be Up to 700,
Slide 15: (Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2023)
(Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2023) (Millions of JPY) Q1 Results Q2 Results Q3 Results Capital investment 1,817 729 2,273 Depreciation and 2,250 2,270 2,338 amortization M&A investment 2,611 359 42 R&D 1,095 1,132 1,124 ©2023 Nissha Group 15
Slide 16: Among the information included in this presentation and provided at investor briefings and conferences,
Among the information included in this presentation and provided at investor briefings and conferences, performance targets, plans, outlooks, strategies and other information that is not constituted of actual past facts, is information that has been judged reasonable by the managers of the Company b