Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — H1 FY2020 Earnings Presentation
22 slides from Nihon Dempa Kogyo's earnings presentation, Nov 17, 2020
Slide 1: First Half Results for Fiscal year 2020 (Ending March 31, 2021)
First Half Results for Fiscal year 2020 (Ending March 31, 2021) Nihon Dempa Kogyo Co., Ltd. November 17, 2020 [Note] Statements made in this presentation with respect to our current plans, estimates, strategies, beliefs and other statements that are not historical facts are forward-looking statement
Slide 2: Contents
＜Contents＞ １．First Half Results for FY2020 (From April 1, 2020 to September 30, 2020) ２．Full Year Outlook for FY2020 (From April 1, 2020 to March 31, 2021) ３．Efforts to Realize the Mid-Term Management Plan Presented by Hiromi Katoh, Representative Director and President 2
Slide 3: Summary of Performance
1. First Half Results for FY2020 Summary of Performance (Million yen） ① ② ③＝①＋② FY2019 FY2020 FY2020 1H Result 1H Result FY2020 FY2020 FY2020 1H (Excluding (Excluding 1Q Result 2Q Result 1H Result Temporary temporary temporary factors factors) factors) Net Sales 19,825 7,534 10,040 17,575 － 17,575 O
Slide 4: Net Sales Year on Year
1. First Half Results for FY2020 Net Sales Year on Year Automotive Electronics: There was a significant decline in earnings due to COVID-19. In the second quarter the recovery approached pre-COVID-19 levels. Industrial Equipment: Earnings increased due to increased demand for OCXO targeting 5G base
Slide 5: Operating Income
1. First Half Results for FY2020 Operating Income Analysis of changes in profit from FY2019 • Although sales decreased by about ￥2.2 billion, fixed costs were drastically reduced by implementing structural reforms, and the break-even point was lowered, which resulted in suppressing expansion of loss
Slide 6: Net Sales Changes from 1Q through 2Q
1. First Half Results for FY2020 Net Sales Changes from 1Q through 2Q Automotive Electronics: Orders in the second quarter exceeded pre-COVID-19 levels Industrial Equipment: Sales increased due to areas such as OCXO targeting 5G base stations 120 Mobile Communications: Increased sales of crystal uni
Slide 7: Operating Income
1. First Half Results for FY2020 Operating Income Analysis of changes in profit from 1Q through 2Q Although sales recovered significantly, the reduction in loss was limited due to the reduction of inventory that increased in the first quarter Net Sales ¥7.5 billion ＋¥2.5 billion ¥10.0 billion 7
Slide 8: Quarterly Results
1. First Half Results for FY2020 Quarterly Results Net Sales (Billion yen) Profit (Billion yen, excluding temporary factors） Operating income 営業利益 (特殊要因除く) Income before 税引前利益 (Excluding temporary factors) income tax 11.0 10.8 10.4 10.3 10.5 9.9 9.8 10.0 ▲0.04 9.3 ▲0.18 7.5 ▲0.27 ▲0.32 ▲0.32 ▲0.32 ▲
Slide 9: Net Sales by Key Application
1. First Half Results for FY2020 Net Sales by Key Application Automotive Electronics Industrial Equipment Mobile Communications/IoT (Billion yen) 505 404 303 202 IoT Mobile 101 Commu- nications 00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY18 FY19 FY2
Slide 10: Contents
＜Contents＞ １．First Half Results for FY2020 (From April 1, 2020 to September 30, 2020) ２．Full Year Outlook for FY2020 (From April 1, 2020 to March 31, 2021) ３．Efforts to Realize the Mid-Term Management Plan 10
Slide 11: FY2020 Full-Year Outlook
2．Full Year Outlook for FY2020 FY2020 Full-Year Outlook (Million yen) FY2020 FY2020 FY2020 Full-Year 1H Result 2H Outlook Outlook Net Sales 17,575 20,025 37,600 Operating Income/Loss* ▲1,077 500 ▲577 Operating Income/Loss ▲1,453 4,453 3,000 <Reference> Impact on net sales (Full year） Net Income befo
Slide 12: FY2020 Full Year Outlook Net Sales
2．Full Year Outlook for FY2020 FY2020 Full Year Outlook Net Sales Automotive Electronics: Orders in the second quarter exceeded the pre-COVID-19 level, and sales in the second half will increase significantly. A fire at a factory supplying ICs for TCXO and a US move to tighten restrictions on Chines
Slide 13: Operating Income
2．Full Year Outlook for FY2020 Operating Income Analysis of changes in profit from FY20/1H through FY20/2H In the Second Half of FY20, sales will largely recover, and the factory operation will rise. As a result, NDK will raise 0.5 billion yen of operating income even if proceeds from the sales of s
Slide 14: Contents
＜Contents＞ １．First Half Results for FY2020 (From April 1, 2020 to September 30, 2020) ２．Full Year Outlook for FY2020 (From April 1, 2020 to March 31, 2021) ３．Efforts to Realize the Mid-Term Management Plan 14
Slide 15: Numerical Targets for Mid-Term Management Plan
３．Efforts to Realize the Mid-Term Management Plan Numerical Targets for Mid-Term Management Plan (FY2022） PL (Sales/Operating Income Ratio) Targets Operating Income Ratio 7% (Excluding temporary factors) Key points of the Mid-Term -1.5% Management Plan -3.1％ -2.5% • Excessive sales level will -5.1
Slide 16: Automotive Electronics Market
３．Efforts to Realize the Mid-Term Management Plan Automotive Electronics Market – Respond to increasing demand in ADAS • Due to ADAS equipment installed in vehicles, the number of crystal devices per vehicle will increase, which lead to a significant increase in demand for crystal devices. Number of
Slide 17: Industrial Equipment
３．Efforts to Realize the Mid-Term Management Plan Industrial Equipment － Respond to increasing demand in 5G base stations • 5G requires more numbers of small base stations ⇒Demand for crystal devices will steadily increase Achieve the large- volume and low-delay Due to the diversity of installation
Slide 18: Mobile Communications Market
３．Efforts to Realize the Mid-Term Management Plan Mobile Communications Market – Respond to increasing demand in 5G Smartphones • Meet high technical requirements to deal with noise and other demands along with the high frequency of 5G • Differentiate product by pinpointing superiority and profitabi
Slide 19: Implementation of Structural Reforms (Fixed Costs)
３．Efforts to Realize the Mid-Term Management Plan Implementation of Structural Reforms (Fixed Costs) We have been promoting structural reform since fiscal 2018 and the target for fixed costs of ￥18 billion is within range this fiscal year. However, we need to pay attention to a rebound in costs due
Slide 20: Toward Achieving Operating Income Target
３．Efforts to Realize the Mid-Term Management Plan Toward Achieving Operating Income Target • From fiscal 2020 through fiscal 2022 operating income is expected to improve in real terms by about ￥3.6 billion. • Fixed costs are expected to increase by ￥0.5 billion, but an increase in sales, changes to
Slide 21: Financial Condition
３．Efforts to Realize the Mid-Term Management Plan Financial Condition • In August 2020, we received an investment of ￥5 billion from Japan Industrial Solutions Co., Ltd. (JIS). • Reached agreement with all financial institutions with which we have a transactional relationship to maintain the balance
Slide 22: Thank you everyone for your time
Thank you everyone for your time For Investor relations related inquiries, please contact: Corporate Planning Group Nihon Dempa Kogyo Co., Ltd. Mail: irmaster@ndk.com 22