Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — FY2022 Earnings Presentation
31 slides from Nihon Dempa Kogyo's earnings presentation, May 23, 2023
Slide 1: Full-Year Results for Fiscal 2022 (Ended March 31, 2023)
Full-Year Results for Fiscal 2022 (Ended March 31, 2023) May 23, 2023 Nihon Dempa Kogyo Co., Ltd. [Note] Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about o
Slide 2: Contents
Contents 1. Results for FY2022 (Ended March 31, 2023) 2. Financial Forecast for FY2023 (Ending March 31, 2024) 3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues 4. Toward Vision2030 Pursue Societal/Economic/Human Resource Value Presented by Hiromi Katoh, Representative Director and
Slide 3: Summary of Financial Results
1. Results for FY2022 (Ended March 31, 2023) Summary of Financial Results ◼ Net sales increased 15% YoY to ¥52.5 billion. ◼ Operating income (excluding temporary factors) increased 57% YoY. Operating income ratio (excluding temporary factors) rose to more than 13%. (Million yen) FY2022 FY2021 FY2022
Slide 4: Net Sales by Application (Year on Year)
1. Results for FY2022 (Ended March 31, 2023) Net Sales by Application (Year on Year) ◼ Net sales rose significantly, driven by automotive electronics applications. Net sales (Billion yen) Factors of increase/decrease FY2021 FY2022 YoY Automotive Net sales increased over 20% YoY due to strong demand
Slide 5: Operating Income: Analysis of Changes from FY2021
1. Results for FY2022 (Ended March 31, 2023) Operating Income: Analysis of Changes from FY2021 ◼ Profits increased YoY thanks to, in addition to increased sales and the yen’s depreciation, improved profitability of automotive applications. +¥2.62 billion (Billion yen) Exchange rate Increase Improved
Slide 6: Financial Results (Quarterly)
1. Results for FY2022 (Ended March 31, 2023) Financial Results (Quarterly) ◼ Net sales and operating income peaked in the second quarter, then decreased due to a slowdown in sales for automotive electronics and mobile communications. ◼ Continuously secured operating income ratio over 10% since FY202
Slide 7: Net Sales (by Main Application)
1. Results for FY2022 (Ended March 31, 2023) Net Sales (by Main Application) ◼ Net sales for automotive electronics and mobile communications are expected to return from the second quarter of FY2023 onward (Billion yen) Automotive Electronics Industrial Equipment Mobile Communications / IoT 80 8.0 7
Slide 8: Financial Position
1. Results for FY2022 (Ended March 31, 2023) Financial Position ◼ The financial position has steadily improved due to the build-up of profits, after the redemption of Class A shares and a public offering. Received ¥5.0 billion Approx. ¥4.0 billion was raised by investment through the public offering
Slide 9: Contents
Contents 1. Results for FY2022 (Ended March 31, 2023) 2. Financial Forecast for FY2023 (Ending March 31, 2024) 3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues 4. Toward Vision2030 Pursue Societal/Economic/Human Resource Value Copyright © 2023 Nihon Dempa Kogyo All Rights Reserved
Slide 10: Financial Forecast
2. Financial Forecast for FY2023 (Ending March 31, 2024) Financial Forecast ◼ The full-year FY2023 net sales forecast is ¥53.3 billion (growth rate of less than 2% YoY). ◼ Profit forecast of YoY decrease due to increase in expenses necessary for medium- to long-term growth (human resources, DX, etc.
Slide 11: Net Sales Forecast by Application
2. Financial Forecast for FY2023 (Ending March 31, 2024) Net Sales Forecast by Application ◼ Solid demand for automotive electronics is expected to drive net sales growth Net sales (Billion yen) Factors of increase/decrease FY2022 FY2023 YoY Automotive Net sales are expected to increase by more than
Slide 12: Operating Income: Analysis of Changes from FY2022
2. Financial Forecast for FY2023 (Ending March 31, 2024) Operating Income: Analysis of Changes from FY2022 ◼ Fixed cost will increase due to an increase of investment in human resources and DX ◼ Plan to reduce inventories of products in the first half of the fiscal year (negative impact on profits)
Slide 13: Capital Investment
2. Financial Forecast for FY2023 (Ending March 31, 2024) Capital Investment ◼ In FY2023, increase investment in DX, facility upgrades (replacement to high-speed line, etc.), and photolithography-related facilities. (Billion yen) 6.0 5.1 5.0 System investment, etc. 1.5 4.0 3.5 Infrastructure investme
Slide 14: Contents
Contents 1. Results for FY2022 (Ended March 31, 2023) 2. Financial Forecast for FY2023 (Ending March 31, 2024) 3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues 4. Toward Vision2030 Pursue Societal/Economic/Human Resource Value Copyright © 2023 Nihon Dempa Kogyo All Rights Reserved
Slide 15: Positioning and Aims of the Medium-Term Management Plan (FY2022-FY2024)
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues Positioning and Aims of the Medium-Term Management Plan (FY2022ーFY2024) ◼ Under this Medium-Term Management Plan we are preparing for sustainable growth with a view to 2030. Medium-Term Management Plan (FY2022–FY2024) Achieve a balan
Slide 16: Management Targets of Medium-Term Management Plan
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues Management Targets of Medium-Term Management Plan ◼ System investment (DX promotion) and infrastructure investment (facility upgrades) are expected to be more than the initial plan. ◼ As a result, total capital investment over the th
Slide 17: Automotive Electronics
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues Automotive Electronics ☑ Our commitment to high quality for Crystal device demand automotive products ☑ Our comprehensive support capabilities Increase in Increase in (from product planning to post-shipping after-sales services) numb
Slide 18: Mobile Communications
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues Mobile Communications ◼ Communication standards evolve on a 10-year cycle. ⇒ Pursue a forward-looking business that gains the first-mover advantage in the first five years to fund the next 10-year cycle. A wo r l d wh e r e e v e r y
Slide 19: Industrial Equipment
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues Industrial Equipment ◼ 5G will increase the number of small wireless base stations called radio units (RU). ◼ Strengthen IC development to enhance product competitiveness of compact OCXOs. Base Station Market Potential Forecast of RU
Slide 20: Contents
Contents 1. Results for FY2022 (Ended March 31, 2023) 2. Financial Forecast for FY2023 (Ending March 31, 2024) 3. Medium-Term Management Plan (FY2022–FY2024) Progress and Issues 4. Toward Vision2030 Pursue Societal/Economic/Human Resource Value Copyright © 2023 Nihon Dempa Kogyo All Rights Reserved
Slide 21: Vision2030 Structure
4. Toward Vision2030 Vision2030 Structure Vi s i o n 2 0 3 0 Creating the Future of Digital Society through Frequencies Human Resource Societal Value Economic Value Value Support digital Explore new domains and Nurture human technology to realize a become a 6G top runner resources to bring society w
Slide 22: Societal Value (Climate Change Measures)
4. Toward Vision2030 Pursue Societal Value (Climate Change Measures) ◼ Promote efforts to become carbon neutral in 2050 (Goals: 2030: CO2 -46% (compared to FY2013), 2050: carbon neutrality) FY2022 Results ◼ Established Carbon Neutrality Committee ◼ Calculated total GHG emissions for Scope 1, 2, and
Slide 23: Economic Value (Vision2030 Business Targets)
4. Toward Vision2030 Pursue Economic Value (Vision2030 Business Targets) Aim to achieve ¥100 billion in net sales by developing new domains as well as growing existing ones. Aim for 20% operating income ratio through high value-added business development. 1,000 100.0 億billion yen 円 ▼Net Sales New Do
Slide 24: Economic Value (Explore and Develop New Domains)
4. Toward Vision2030 Pursue Economic Value (Explore and Develop New Domains) New domains Society ICT field of exploration 5.0 Post-5G era Develop & expand new Participation in a project1 commissioned businesses by the Ministry of Economy, Trade and Industry and NEDO2 based on existing businesses & t
Slide 25: Economic Value (Promote DX)
4. Toward Vision2030 Pursue Economic Value (Promote DX) FY2022 from FY2023 FY2030 Construct infrastructure Project kick-off (system & human resource) ■Inventory of current ■Construct a global network status ＆ revamp enterprise core Use DX for (surveys & hearings) system carrying ■Select members of t
Slide 26: Human Resource Value
4. Toward Vision2030 Pursue Human Resource Value ◼ Nurture human resources to bring innovation to the world and to our future FY2022 Results ◼ Workstyle reform: Introduced flexible work hours system for sales staff ◼ New personnel system: Introduced at the management level ◼ Diversity: Strengthened
Slide 27: Human Resource Value (Create new NDK - Four Core Values)
4. Toward Vision2030 Pursue Human Resource Value(Create new NDK―Four Core Values) Improve pride and joy in our work and create new NDK Copyright © 2023 Nihon Dempa Kogyo All Rights Reserved 27
Slide 28: Human Resource Value (Culture Reform Campaign)
4. Toward Vision2030 Pursue Human Resource Value (Culture Reform Campaign) Culture Reform Campaign Launched a poster campaign with the aim of improving NDK’s culture, creating a culture of pride and joy in working at NDK. First Campaign Slogan Move from a culture of looking for the culprit, to a cul
Slide 29: Final Comments
Final Comments ◼ Advancing efforts to strengthen the company's foundations for sustainable growth Current location Global financial crisis Preparation period for Toward sustainable Slump in business COVID-19 sustainable growth growth performance 2010 2015 2020 2022 2024 2030 Initiatives for Vision20
Slide 30: Thank you everyone for your time
T h a n k yo u e v e r yo n e f o r yo u r t i m e May 23, 2023 Nihon Dempa Kogyo Co., Ltd. Copyright © 2023 Nihon Dempa Kogyo All Rights Reserved 30
Slide 31: Net Sales Forecast by Application (by half year)
Appendix Net Sales Forecast by Application (by half year) FY2022 FY2023 forecast (Billion yen) 1H 2H Full year 1H 2H Full year Automotive 13.5 13.7 27.2 14.8 15.7 30.5 Industrial 2.1 1.8 3.9 1.6 1.7 3.3 Mobile 4.6 4.5 9.1 3.6 5.1 8.7 IoT 1.1 1.2 2.3 1.0 1.3 2.3 Consumer 2.3 1.8 4.1 1.5 1.7 3.2 Medic