Nisshinbo Holdings Inc. · TSE:3105
Nisshinbo — 2Q FY2018 Earnings Presentation
24 slides from Nisshinbo's earnings presentation, Nov 9, 2018
Slide 1: 2Q Financial Results for FY2018
2Q Financial Results for FY2018 (Apr. 2018 – Dec. 2018) Nisshinbo Holdings Inc. Nov. 9, 2018
Slide 2: Highlights
HIGHLIGHTS （mil. yen） FY2017 FY2018 Change 2Q results 2Q results Rate (adjusted) Net sales 287,192 291,000 +3,808 +1.3% Operating income 2,730 -868 -3,599 - Ordinary income 5,589 1,931 -3,657 ▲65.4% Attributable to Owners of Parent 16,967 -83 -17,051 - Net income Exchange rate yen/dollar 111.81 109.
Slide 3: Net sales breakdown (y/y)
Net sales breakdown (y/y) （mil. yen） FY2017 FY2018 Change 2Q results 2Q results Rate (adjusted) Wireless comms 56,523 55,703 -820 ▲1.5% Microdevices 24,963 36,225 +11,262 +45.1% Electronics total 81,487 91,929 +10,441 +12.8% Brakes 110,056 103,594 -6,462 ▲5.9% Precision instruments 43,926 45,618 +1,
Slide 4: Net sales breakdown (y/y)
Net sales breakdown (y/y) NSSHNBO (mil. yen) FY2018 2Q_ Sales (y/y) 300,000 298,000 —=— “378 +1,403 296,000 294,000 +554 292,000 [| 290,000 8,591 291,000 288,000 | ~_— | 226,000 | 287,492 | —_— |} -820 sot 284,000 282,000 280,000 2 2 2 2 2 2 2 Q z BS 8z = = z= 3. a. z S Se 35 a nd 35 8 8 g = ax 32 Z
Slide 5: Operating income breakdown (y/y)
Operating income breakdown (y/y) （mil. yen） FY2017 FY2018 Change 2Q results 2Q results Rate (adjusted) Wireless comms -5,268 -5,031 +237 - Microdevices 887 1,124 +236 +26.6% Electronics total -4,380 -3,906 +473 - Brakes 3,946 657 -3,288 ▲83.2% Precision instruments 1,011 1,356 +344 34.0% Chemicals 7
Slide 6: Operating income breakdown (y/y)
Operating income breakdown (y/y) 6
Slide 7: 2Q Ordinary income to net income (y/y)
2Q Ordinary income to net income (y/y) （mil. yen） FY2017 FY2018 Change 2Q results 2Q results Rate (adjusted) Operating income 2,730 -868 -3,599 - Non-operating income 5,723 5,466 -257 ▲4.5% Non-operating expenses 2,864 2,665 -199 ▲6.9% Ordinary income 5,589 1,931 -3,657 ▲65.4% Extraordinary income 1
Slide 8: FY2018 Revised forecast
FY2018 Revised forecast （mil. yen） FY2018 FY2018 Change Initial FC Revised FC Rate (10 May) (31 Oct.) Net sales 435,000 426,000 -9,000 ▲2.1% Operating income 3,500 -2,000 -5,500 - Ordinary income 7,500 2,000 -5,500 ▲73.3% Attributable to Owners of Parent 5,000 -5,500 -10,500 - Net income 8
Slide 9: FY2018 Revised forecast (Sales)
FY2018 Revised forecast (Sales) （mil. yen） FY2018 FY2018 Change Initial FC Revised FC Rate (10 May) (31 Oct.) Wireless comms 93,000 91,100 -1,900 ▲2.0% Microdevices 60,000 57,000 -3,000 ▲5.0% Elimination 0 -500 -500 - Electronics total 153,000 147,600 -5,400 ▲3.5% Brakes 146,000 139,900 -6,100 ▲4.2%
Slide 10: FY2018 Revised forecast (Sales)
FY2018 Revised forecast (Sales) 10
Slide 11: FY2018 Revised forecast (Operating income)
FY2018 Revised forecast (Operating income) (Brakes) Decreased sales of aftermarket products and increased expenses at TMD（-4,300 mil. yen） (Wireless comms) Sluggish market recovery in marine systems business and low orders in solutions business（-1,100 mil. yen） (Microdevices) Low orders for smartpho
Slide 12: FY2018 Revised forecast (Operating income)
FY2018 Revised forecast (Operating income) 12
Slide 13: FY2018 Revised forecast (Net income)
FY2018 Revised forecast (Net income) 13
Slide 14: TMD Reasons for the downward Revisions
TMD Reasons for the downward Revisions Compared to the initial forecast Sales： -6,800 mil. yen （101,200 mil. yen → 94,400 mil. yen） Operating income： -4,300 mil. yen （1,600 mil. yen → -2,700 mil. yen） Reasons for the decrease in sales and operating income ■Decreased sales of aftermarket products by
Slide 15: Key Measures of TMD
Key Measures of TMD ①Focus on profitability rather than sales growth ②Conduct business structure reform without allowing a sanctuary ③Renovate management structure led by Nisshinbo ④Restart strategic investment into growth areas after converting a profit structure 15
Slide 16: Key Measures of Electronics business
Key Measures of Electronics business Wireless communications ①Marine systems 1. Improve profitability Improve variable cost ratio and reduce fixed costs 2. Reinforce foundation fields: New ship building, Replacement, Information service 3. Break away from merchant ship dependence, Expand business in
Slide 17: Key Measures of Electronics business
Key Measures of Electronics business Wireless communications ③Solutions 1. Expand the main force business: social infrastructure related to disaster prevention 2. Private sector business: ICT/IoT solutions 3. Overseas business related to climate, disaster prevention, ocean and traffic business in So
Slide 18: Efforts in FY2018
Efforts in FY2018 ①Converted Ricoh Electronic Devices into a consolidated subsidiary. Focused on automotive and industrial uses, while leveraging synergies with NJR ②Transfer drum brake (foundation brake) business. ③Established JRC Mobility. Automation Autonomous ④Converted NJR into wholly owned sub
Slide 19: Appendix Segment information①
Appendix Segment information① Forecast 2Q Year on Year Previous results FY2018 revised FC FY2018 initial FC FY2018 FY2017 Change (2Q) FY2017 results (31 Oct) (10 May) 2Q results 2Q adjusted Electronics Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Ma
Slide 20: Appendix Segment information②
Appendix Segment information② Forecast 2Q Year on Year Previous results FY2018 revised FC FY2018 initial FC FY2018 FY2017 Change (2Q) FY2017 results Brakes (31 Oct) (10 May) 2Q results 2Q adjusted Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. Net sales O. P. JPN NIS
Slide 21: Appendix Segment information③
Appendix Segment information③ 21
Slide 22: Appendix Segment information④
Appendix Segment information④ 22
Slide 23: Appendix Segment information⑤
Appendix Segment information⑤ 23
Slide 24: 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