Nihon Tokushu Toryo Co., Ltd. · TSE:4619
Nihon Tokushu Toryo — FY2023 Earnings Presentation
49 slides from Nihon Tokushu Toryo's earnings presentation, May 31, 2024
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2024
Financial Results Briefing for the Fiscal Year Ended March 31, 2024 May 31, 2024 NIHON TOKUSHU TORYO CO., LTD. (Stock Exchange Code: 4619, Tokyo Stock Exchange Standard Market) 1 Copyright © NIHON TOKUSHU TORYO CO., LTD. All Rights Reserved.
Slide 2: Contents
Contents 1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (FY23) 2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (FY24) 3. Overview of the Company’s Businesses 4. Future Growth Strategy (Reference Materials) 1. Company Profile 2. Trends of
Slide 3: Summary of Financial Results: Consolidated Statements of Income
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (1) Summary of Financial Results for the Fiscal Year Ended March 31, 2024 1) Consolidated Statements of Income (Million yen) FY22 FY23 YoY change Actual Ratio Actual Ratio Amount % results results Net sales 60,738 – 64,693 – +
Slide 4: Trends of Consolidated Financial Results (Past Seven Fiscal Years)
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (1) Summary of Financial Results for the Fiscal Year Ended March 31, 2024 2) Trends of Consolidated Financial Results (Past Seven Fiscal Years) Ordinary profit and share of profit of entities accounted for using equity Net sal
Slide 5: Quarterly Results for the Past Three Fiscal Years
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (1) Summary of Financial Results for the Fiscal Year Ended March 31, 2024 3) Trends of Consolidated Financial Results (Quarterly Results for the Past Three Fiscal Years) Automotive products business ■ Net sales (Million yen) P
Slide 6: Composition of Net Sales by Segment/Main Product
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (1) Summary of Financial Results for the Fiscal Year Ended March 31, 2024 4) Composition of Net Sales (By Segment/Main Product) Paints & coatings business Automotive products business Interior, exterior, and roof paints: 1.8%
Slide 7: Results by Segment: Paints & Coatings-related Business
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (2) Results by Segment 1) Paints & coatings-related business Net sales 20,612 Net sales 20,565 · Paints & coatings: up 7.6% YoY Sales of paints for buildings and structures, especially waterproofing materials and floor coating
Slide 8: Paints & Coatings: Contracted Work
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (2) Results by Segment 1) Paints & coatings-related business ■ Contracted work (large-scale renovation work for condominiums) A subsidiary of the Company, NITTOKU MENTE, undertakes large-scale renovation and repair work for co
Slide 9: Paints & Coatings: Factor Analysis of Changes in Profit
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (2) Results by Segment 1) Paints & coatings-related business Factor analysis of changes in profit (Million yen) 663 (2) 3 (147) 44 456 (113) 8 FY22 FY23 Net sales increased decreased Raw material costs worsened Cost of sales r
Slide 10: Results by Segment: Automotive Products-related Business
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (2) Results by Segment 2) Automotive products-related business Net sales 44,066 Net sales 40,157 · Net sales increased mainly in sound- absorbing and sound-insulating materials and coatings due to a recovery in Profit 3,439 au
Slide 11: Automotive Products: Factor Analysis of Changes in Profit
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (2) Results by Segment 2) Automotive products-related business Factor analysis of changes in profit (Million yen) 452 41 3,439 1,443 67 (43) (259) 1,737 FY22 FY23 Net sales increased decreased Raw material costs improved Cost
Slide 12: Consolidated Balance Sheets
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (3) Consolidated Balance Sheets (Million yen) FY22 FY23 YoY change Actual Actual Ratio Ratio Amount results results Current assets 36,013 43.9 38,555 44.1 +2,541 Non-current assets 46,020 56.1 48,900 55.9 +2,880 Property, plan
Slide 13: Consolidated Statements of Cash Flows
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2024 (4) Consolidated Statements of Cash Flows 533 (5,092) 9,317 265 15,876 CF from investing activities CF from Effect of 10,853 financing activities exchange rate CF from change operating activities Cash and cash equivalents Cash
Slide 14: Summary of Consolidated Financial Results Forecast Ending March 31, 2025
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (1) Summary of Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (Million yen) FY23 FY24 YoY change Actual Ratio Forecast Ratio Amount % results Net sales 64,693 – 62,100 – (2,593) (4.
Slide 15: Forecast Results by Segment
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (2) Results by Segment Paints & coatings-related business Automotive products-related business Net sales Net sales 20,612 20,500 44,066 41,600 Profit Profit 3,439 2,370 456 430 FY24 FY24 FY23 FY23 Plan Plan (Million
Slide 16: Revision of Performance Targets of Medium-Term Management Plan
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (3) Revision of the performance targets of Medium-Term Management Plan The performance target of Medium-Term Management Plan was revised along with FY24 (119th) forecast, even though the performance target exceeded t
Slide 17: Capital Expenditures and Depreciation
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (4) Capital Expenditures and Depreciation 1) Capital expenditure (Construction Basis) Capital expenditure Capital expenditure : Million yen Ratio of operating profit: % 12,000 15 · Large-scale investments will decrea
Slide 18: Dividends Profit Return
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (5) Dividends Profit Return Based on stable dividends (stable dividends and extra), we made a decision by comprehensively taking into account such factors as the enhancement of funds for strategic investments, financ
Slide 19: Main Products for Paints & Coatings-related Business
3. Overview of the Company’s Businesses (1) Main Products for Paints & Coatings-related Business ■ Paints for buildings and structures Thermal insulating paints protect the We develop and sell a variety of functional paints and coatings, entire building from heat, including roofs, including interior
Slide 20: Main Products for Paints & Coatings-related Business (continued)
3. Overview of the Company’s Businesses (1) Main Products for Paints & Coatings-related Business ■ Contracted work (large-scale renovation of housing complexes) A subsidiary of the Company, NITTOKU MENTE, undertakes large-scale renovation and repair work for condominiums and other properties. NITTOK
Slide 21: Main Products for Automotive Products-related Business
3. Overview of the Company’s Businesses RIETER ULTRA LIGHT TM is a registered trade mark (2) Main Products for Automotive of Autoneum Management AG. Automotive Products-related Business sound- absorbing ■ Sound-absorbing & material sound-insulating “Sound- absorbing materials duct” Automotive sound-
Slide 22: Main Products for Automotive Products: Vibration-damping and Rustproof Materials
3. Overview of the Company’s Businesses (2) Main Products for Automotive Products-related Business ■ Vibration-damping and Typical sections to which automotive Rustproof Materials rustproof materials and sealants are applied “NT Guard Coat” (PVC-based) Coating-type vibration-damping material “NT Dam
Slide 23: Basic Strategies of the Medium-Term Management Plan (FY21 to FY24)
4. Future Growth Strategy Basic Strategies of the Medium-Term Management Plan (FY21 to FY24) (1) Build a stable revenue base for domestic businesses (2) Reinforce “Nittoku, the technical specialist” and develop new technologies and products (3) Strengthen global development (4) Promote digital trans
Slide 24: Build a Stable Revenue Base for Domestic Businesses
4. Future Growth Strategy (1) Build a stable revenue base for domestic businesses ■ Business restructuring (Reallocation of resources to growing departments and consolidation of unprofitable departments) Terminate and consolidate the automotive products businesses at the Hiratsuka Plant, aiming to b
Slide 25: Build a Stable Revenue Base: Automotive Products
4. Future Growth Strategy (1) Build a stable revenue base for domestic businesses Automotive Products ■ Improve profitability through new production method and streamlining of production processes (Improve production capacity and investment efficiency of dash insulators, our main products) · We comp
Slide 26: Reinforce Nittoku, the Technical Specialist, and Develop New Technologies
4. Future Growth Strategy (2) Reinforce “Nittoku, the technical specialist” and develop new technologies and products Paints and Coatings ■ Urethane waterproofing materials (Products that do not contain specified chemical substances, MOCA and lead catalyst (2024)) Automotive Products (Parts) ■ Formu
Slide 27: Automotive Products (Parts): New Products for BEVs
4. Future Growth Strategy (2) Reinforce “Nittoku, the technical specialist” and develop new technologies and products Automotive Products (Parts) ■ Develop new products that meet needs for BEVs and ease of disassembly (Soundproof products for the mid-frequency range) · The needs for countermeasures
Slide 28: Automotive Products (Coatings): Coatings for Battery
4. Future Growth Strategy (2) Reinforce “Nittoku, the technical specialist” and develop new technologies and products Automotive Products (Coatings) ■ Develop new products, coatings for battery (Promote the development of coatings for BEV battery for the purpose of thermal management) · Respond to c
Slide 29: Strengthen Global Development
4. Future Growth Strategy (3) Strengthen global development Paints and Coatings ■ Develop new overseas markets Strengthen sales of high-value-added products that meet diverse needs, including waterproofing materials and floor coating materials, mainly to China and Southeast Asia. Automotive Products
Slide 30: Promote Digital Transformation (DX)
4. Future Growth Strategy (4) Promote digital transformation (DX) Paints and Coatings ■ Improve operational efficiency using AI (Examination of paints formulation) Incorporate AI into the database of existing technologies to streamline development processes. Utilize the reduced man-hours and improve
Slide 31: Promote Sustainability Management: Paints and Coatings
4. Future Growth Strategy (5) Promote sustainability management Paints and Coatings ■ Expand environmentally conscious products (Strengthen and expand thermal insulating paints and other products that contribute to CO2 emissions reduction) 31
Slide 32: Promote Sustainability Management: Local Production for Local Consumption
4. Future Growth Strategy (5) Promote sustainability management Automotive Products ■ Project promoting local production for local consumption (In collaboration with Chubu Bureau of Economy, Trade and Industry, and Toyota Motor Corporation) · As part of promoting circular economy and carbon neutrali
Slide 33: Promote Sustainability Management: Automotive Products New Products
4. Future Growth Strategy (5) Promote sustainability management Automotive Products ■ Develop new products (Develop proprietary technologies for synthetic fiber sustainability) · Moving forward by setting a target of completing the commercialization of our patented technology dedicated to synthetic
Slide 34: Company-wide: Realize Carbon Neutrality
4. Future Growth Strategy (5) Promote sustainability management Company-wide ■ Realize carbon neutrality Launch a carbon neutrality project to halve CO2 emissions in FY30 and achieve carbon neutrality through all products and corporate activities by 2050. Solar power generation facilities installed
Slide 35: Company-wide: Human Resources, Governance and CSR
4. Future Growth Strategy (5) Promote sustainability management Company-wide ■ Reinforce human resource development and promote job satisfaction reform Reinforce human resource development to support sustainable growth (expand training and educational opportunities) and promote the creation of a vib
Slide 36: Reference Materials
Reference Materials 1. Company Profile 2. Trends of Primary Management Indicators 36
Slide 37: Company Profile
1. Company Profile (1) Company Profile ■ Trade name NIHON TOKUSHU TORYO CO., LTD. ■ Head office 3-23-2, Oji, Kita-ku, Tokyo ■ Established June 1, 1929 ■ Share capital 4,753.08 million yen ■ Number of shares issued 23,611,200 shares ■ Consolidated number of employees 1,185 (as of March 31, 2024) * Ex
Slide 38: Officers and Executive Officers
1. Company Profile (2) Officers and Executive Officers (company with a board of auditors) As of May 2024 ■ Directors ■ Executive Officers Chairman, Senior Managing Jun Taya Hisaya Yamaguchi CEO Executive Officer Managing Executive President, Yosuke Rikitake Hiroshi Onda Officer, CFO COO Executive Of
Slide 39: Corporate Principle and Philosophy
1. Company Profile (3) Corporate Principle and Philosophy Corporate Principle Ingenuity Corporate Philosophy To contribute to society by offering prominent technology and products. To promote the interests of stockholders and respect each employee’s personality. To pursue prosperity in harmony with
Slide 40: Business Policy and Long-term Vision
1. Company Profile (4) Business Policy and Long-term Vision Business Policy Under our corporate principle "Ingenuity", we respond to customers' demands and reliance with unique technology and products. As an active corporation in the world, we organize all of our knowledge and efforts for the develo
Slide 41: Major Facilities in Japan
1. Company Profile (5) Major facilities in Japan ■ Head Office and R&D Division/Center ■ Six Plants in Japan Hiratsuka Plant Shizuoka Plant Head Office R&D Center Aichi Plant Hiroshima Plant R&D Laboratory for Paints and Coatings Kyushu Plant Higashi Kyushu Plant 41
Slide 42: History of Paints & Coatings Business
1. Company Profile (6) History (a) ■ History of paints & coatings business from its founding 1929: Started with the development of paints for aircraft as a limited partnership company. 1930: Developed the TT METAL PAINT. 1951: Developed the SLECOAT, paints for cement roofs. 1966: Entered the constru
Slide 43: History of Automotive Products Business
1. Company Profile (6) History (b) ■ Entering the automotive products business and establishing coating and sound-insulating material technology 1953: Developed the NITTOKU-UNDERSEAL, automotive soundproof and rustproof coating products). 1964: Launched the MELSHEET, automotive vibration-damping she
Slide 44: Global Development: History
1. Company Profile (7) Global Development (Automotive Products-related Business) ■ History 1967 Signed a technology agreement with Matec Holding AG (presently Autoneum Holding AG). 1986 Established UGN, Inc. in the U.S. ▲ Unikeller Institute in Switzerland ▲ United Globe Nippon, Inc. (at the time) (
Slide 45: Global Development: Global Network
1. Company Profile (7) Global Development (Automotive Products-related Business) ■ Global network (current situation) Company accounted for using equity method Consolidated Company accounted for subsidiary using equity method Wuhan Nittoku Autoneum Sound-Proof Tianjin Autoneum Nittoku Automotive UGN
Slide 46: Global Partner: Autoneum Holding AG
1. Company Profile (7) Global Development (Automotive Products-related Business) ■ Global partner Autoneum Holding AG 1) Technical alliance with Autoneum (soundproof parts) Alliance over 50 years since 1967 Global strategies Sharing of acoustic analysis technology, evaluation technology, and product
Slide 47: Global Partner: EMS-EFTEC
1. Company Profile (7) Global Development (Automotive Products-related Business) ■ Global partner EMS-EFTEC 1) Overview of EMS-EFTEC · A subsidiary of EMS-CHEMIE HOLDING AG EMS Group · High Performance Polymers business of the EMS Group Net sales of approx. CHF 2,200 million* (approx. 380.0 billion
Slide 48: Key Financial Performance Indicators (Consolidated)
2. Key Financial Performance Indicators (Consolidated) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Net sales (Million yen) 39,570 43,812 47,998 57,260 59,417 57,191 48,004 54,779 60,738 64,693 Operating profit (Million yen) 1,629 2,961 3,162 3,286 2,973 2,827 858 1,482 1,631 3,905 Ordinary pro
Slide 49: Contact for IR
Contact for IR Corporate Planning Office, 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 informati