Nihon Tokushu Toryo Co., Ltd. · TSE:4619
Nihon Tokushu Toryo — FY2024 Earnings Presentation
43 slides from Nihon Tokushu Toryo's earnings presentation, May 30, 2025
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2025
Financial Results Briefing for the Fiscal Year Ended March 31, 2025 and Overview of the New Medium-Term Management Plan May 30, 2025 NIHON TOKUSHU TORYO CO., LTD. (Stock Exchange Code: 4619, Tokyo Stock Exchange Standard Market) Copyright © NIHON TOKUSHU TORYO CO., LTD. All Rights Reserved.
Slide 2: Overview of Financial Results for FY24
Overview of Financial Results for 01 the Fiscal Year Ended March 31, 2025 (FY24)
Slide 3: Overview of Consolidated Financial Results
Overview of Financial Results for the Fiscal Year Ended March 31, 2025 Overview of Consolidated Financial Results In FY24, we exceeded our most recent financial results forecast, achieving the Medium- Term Management Plan targets for net sales, operating profit, ordinary profit, and profit; however,
Slide 4: Performance by Segment: Paints & Coatings-Related Business
Overview of Financial Results for the Fiscal Year Ended March 31, 2025 Overview of Performance by Segment: Paints & Coatings-Related Business Strong sales mainly related to large-scale renovation and repair work for condominiums drove higher revenues and profits. ■Performance overview (Million yen)
Slide 5: Performance by Segment: Automotive Products-Related Business
Overview of Financial Results for the Fiscal Year Ended March 31, 2025 Overview of Performance by Segment: Automotive Products-Related Business Sales fell due to reduced production by major customers, domestic automobile manufacturers; however, profit levels were sustained. ■Performance overview (Mi
Slide 6: Composition of Net Sales
Overview of Financial Results for the Fiscal Year Ended March 31, 2025 Composition of Net Sales (By Segment/Main Product) Interior, exterior, and roof paints: 1.7% Floor coating and pavement materials: 4.8% Automotive products business Waterproof materials: 8.9% 64.1% Aircraft paints: 0.9% Net sales
Slide 7: Consolidated Balance Sheets
Overview of Financial Results for the Fiscal Year Ended March 31, 2025 Consolidated Balance Sheets (Million yen) FY23 FY24 YoY change Actual Actual Ratio Ratio Amount results results Current assets 38,555 44.1 38,327 45.0 (228) Non-current assets 48,900 55.9 46,916 55.0 (1,984) Property, plant and e
Slide 8: Consolidated Statements of Cash Flows
Overview of Financial Results for the Fiscal Year Ended March 31, 2025 Consolidated Statements of Cash Flows 3,119 (1,237) (2,037) 15,876 303 16,024 CF from CF from investing CF from Effect of operating activities financing exchange activities activities rate change Cash and cash equivalents Cash an
Slide 9: Overview of Financial Forecast for FY25
Overview of Financial Forecast for 02 the Fiscal Year Ending March 31, 2026 (FY25)
Slide 10: Summary of Consolidated Financial Forecast for FY25
Overview of Financial Forecast for the Fiscal Year Ending March 31, 2026 Summary of Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2026 (Million yen) FY24 FY25 YoY change Actual Ratio Forecast Ratio Amount % results Net sales 66,060 － 63,000 － (3,060) (4.6)% Operating profit 4,
Slide 11: Results by Segment
Overview of Financial Forecast for the Fiscal Year Ending March 31, 2026 Results by Segment Paints & coatings-related business Automotive products-related business Net sales Net sales 42,321 42,000 23,722 21,000 Profit Profit 3,493 953 2,150 550 FY24 FY25 FY24 FY25 Plan Plan (Million yen) (Million y
Slide 12: Capital Expenditures and Depreciation
Overview of Financial Forecast for the Fiscal Year Ending March 31, 2026 Capital Expenditures and Depreciation ■Capital expenditures (Construction basis) See page 35 for cash allocation under the 12,000 new Medium-Term Management Plan (FY25 to FY29). 9,393 7,846 8,000 6,295 4,397 4,743 4,000 3,614 3
Slide 13: Plan for Shareholder Returns
Overview of Financial Forecast for the Fiscal Year Ending March 31, 2026 Plan for Shareholder Returns ■Shareholder returns We expect an annual dividend of ¥110 per share for FY25, up ¥20 YoY, in line with the shareholder returns policy under the Medium-Term Management Plan (see page 34). Annual divi
Slide 14: Current Perspectives on Market Valuation and Return on Capital
Review of the Previous Medium-Term Management Plan and Changes in the External Environment Current Perspectives on Market Valuation and Return on Capital PBR remains low; profitability is improving, with ROE trending within the 7–8% range. Trends in PBR 2.00 PBR continues to stay below 1x. 1.50 1x P
Slide 15: Key Priorities for Improving PBR
Review of the Previous Medium-Term Management Plan and Changes in the External Environment Key Priorities for Improving PBR Steadily advancing the following priorities to sustainably enhance corporate value (PBR) Corporate value (PBR) enhancement ROE improvement PER enhancement (Price Earnings Ratio
Slide 16: New Medium-Term Management Plan: Basic Policy
New Medium-Term Management Plan: 03 Basic Policy
Slide 17: Positioning the New Medium-Term Management Plan
New Medium-Term Management Plan: Basic Policy Positioning the New Medium-Term Management Plan FY29 target: Growth through business field expansion Achieve ¥80.0bn net sales and 10.0%+ ROE Phase 03 Enter a new stage by developing and Phase 02 expanding new businesses Expand business fields and streng
Slide 18: Innovation and Challenge
New Medium-Term Management Plan: Basic Policy New Medium-Term Management Plan: Basic Policy New Medium-Term Management Plan Innovation and Challenge Theme Creating the next 100 years together Approach 1 Approach 2 Approach 3 Approach 4 Optimize Maximize Drastically Drive Business strategies product
Slide 19: New Medium-Term Management Plan: Management Targets
New Medium-Term Management Plan: 04 Management Targets
Slide 20: Management Targets
New Medium-Term Management Plan: Management Targets Management Targets We aim to elevate our core strategies (business, financial and capital, and management foundation strategies) to a new level, targeting a 10%+ ROE by FY29. FY24 FY29 Actual results Plan vs. FY24 (Million yen) Net sales 66,060 80,
Slide 21: Targets by Segment
New Medium-Term Management Plan: Management Targets Targets by Segment We thoroughly implement the basic strategies for each business to steadily achieve the target ratio of operating profit. FY24 FY29 (Million yen) Actual results Plan vs. FY24 Net sales 23,722 26,600 +12.1% Paints and Operating Coa
Slide 22: Business Strategies
“nittoku 05 Business Strategies
Slide 23: Current Business Environment (Paints and Coatings / Automotive Products)
Business Strategies Current Business Environment (Paints and Coatings / Automotive Products) Business Business environ- environ- ment Paints and Coatings ment Automotive Products Mature domestic market for paints and coatings used in building Advancement of CASE (Connected, materials Autonomous,
Slide 24: Paints and Coatings: Numerical Targets and Basic Strategies
Business Strategies Paints and Coatings Numerical Targets and Basic Strategies Operating Operating Net sales Numerical profit profit ratio targets ¥26.6bn ¥1.6bn 6.0% Pursue market share expansion in floor-coating materials, focusing on thick-film epoxy floor coatings Expand market share in Enha
Slide 25: Approach 1: Optimize Product Portfolio
Business Strategies—Approach 1: Optimize Product Portfolio Paints and Coatings Expanding Market Share in Existing Businesses: Growing Core Businesses Positioning floor-coating materials as the second core business, following waterproof materials High Sales contribution of floor- Prospective Existing
Slide 26: Approach 2: Maximize Sales Opportunities
4Paints Business Strategies—Approach 2: Maximize Sales Opportunities and Coatings Strengthening Sales Capabilities in the Tokyo Metropolitan Area and Surrounding Eastern Region Deploying human resources to the Tokyo metropolitan area Accelerate growth by concentrating resources in Japan's largest ma
Slide 27: Approach 3: Drastically Improve Productivity
4Paints Business Strategies—Approach 3: Drastically Improve Productivity and Coatings Establishing a Vertically Integrated Value Chain Establishing an optimal value chain to enhance profitability and stabilize the supply system STEP STEP STEP STEP 01 02 03 04 Raw materials R&D procurement Manufactur
Slide 28: Approach 4: Drive Technological Innovation
4Paints Business Strategies—Approach 4: Drive Technological Innovation and Coatings Developing High-Value-Added Products Advancing technological development to achieve 5%+ operating profit by FY29 New Medium-Term Management Plan (FY25 to FY 29) Phase 1 Phase 2–(1) Phase 2–(2) Future growth plan (FY2
Slide 29: Automotive Products: Numerical Targets and Basic Strategies
Business Strategies Automotive Products Numerical Targets and Basic Strategies Operating Operating Net sales Numerical profit profit ratio targets ¥53.4bn ¥4.5bn 8.4% Develop technologies and [Industry first] Launch products made from 100% recycled materials ⇒ Complete product development for unde
Slide 30: Developing Technologies and Materials to Reduce Environmental Impact
4Automotive Business Strategies—Approaches 1&4: Optimize Product Portfolio & Drive Technological Innovation Products Developing Technologies and Materials to Reduce Environmental Impact Developing environmentally responsive parts utilizing proprietary technologies and implementing market expansion s
Slide 31: Strengthening Collaboration with Technical Partners and Overseas JVs
Business Strategies—Approach 2: Maximize Sales Opportunities Automotive Products Strengthening Collaboration with Technical Partners and Overseas JVs Expanding revenue in growth markets North America through optimized production and supply Propose products tailored to electric vehicle systems and
Slide 32: Reforming Structure to Enhance Profitability
Business Strategies—Approach 3: Drastically Improve Productivity Automotive Products Reforming Structure to Enhance Profitability Establishing a general-purpose line: 2x productivity with less labor, space, and energy—30% lower CO₂ emissions 01 02 03 Labor-saving Space-saving and Energy-saving stand
Slide 33: Developing New Products Leveraging NV Technology
4Automotive Business Strategies—Approaches 2&4: Maximize Sales Opportunities & Drive Technological Innovation Products Developing New Products Leveraging NV Technology Marketing modular products with NV-control performance Drivers behind the need for modularization 1. Improved assembly efficiency an
Slide 34: Financial and Capital Strategies
06 Financial and Capital Strategies 33
Slide 35: Shareholder Returns Policy: Strengthen Shareholder Returns
Financial and Capital Strategies Shareholder Returns Policy: Strengthen Shareholder Returns Implementing performance-based distribution and flexible share buybacks under the new Medium-Term Management Plan New Medium-Term Management Previous plan Plan Shareholder Payout ratio 30% Total payout ratio
Slide 36: Cash Allocation: Promoting Strategic Growth Investments
Financial and Capital Strategies Cash Allocation: Promoting Strategic Growth Investments Executing strategic growth investments and capital expenditures while strengthening shareholder returns Cash allocation FY25 to FY29 Leverage interest-bearing debt flexibly according to Growth investment Use lev
Slide 37: Management Foundation Strategies
07 Management Foundation Strategies 36
Slide 38: Advancing ESG Management
Management Foundation Strategies Advancing ESG Management Advancing ESG-focused management as a key driver of sustainable growth Governance Social Environment Corporate governance Social responsibility Environmental initiatives initiatives protection initiatives I. Enhance Board composition I. Suppo
Slide 39: Strengthening Governance Framework
Management Foundation Strategies Strengthening Governance Framework PART 01 Current framework To be adopted Enhancement of Board composition 33% 0 0 Outside Directors Outside Director Female Increase in the ratio of Independent Outside Directors ratio with management experience Directors Strengt
Slide 40: Developing Human Capital
Management Foundation Strategies ６ Developing Human Capital Enhancing human capital (human assets) to achieve both sustainable growth and “Innovation” Performance capability A challenge-driven mindset to promote solid growth to evolve beyond stability Enabling autonomous career Enhancing adaptabilit
Slide 41: Fostering an Organizational Culture That Takes on Challenges
Management Foundation Strategies Fostering an Organizational Culture That Takes on Challenges Toward an organization where taking on challenges is the norm Empowering everyone to take initiative Fostering an organizational culture that takes on challenges, enabling everyone to think and act independ
Slide 42: Promoting DX
Management Foundation Strategies Promoting DX DX strategy (Basic policy for promoting DX) Transform the organization to adapt to social and economic change in the midst of rapidly evolving digital technology Transform operational processes to align with shifting work styles and enhance productiv
Slide 43: Contact for IR
Contact for IR Corporate Planning Division, NIHON TOKUSHU TORYO CO., LTD. (Phone: +81-(0)3-3913-6136) This document is for the sole purpose of providing information to investors and is not for the purpose of soliciting investments. The forward-looking statements in this document are based on informa