Nifco Inc. · TSE:7988
Nifco — H1 FY2024 Earnings Presentation
17 slides from Nifco's earnings presentation, Nov 7, 2024
Slide 1: Summary of Financial Results: First Half of FY2024
Summary of Financial Results: First Half of FY2024 All Rights Reserved. Copyright © 2018-2021. Nifco Inc.
Slide 2: Agenda
Agenda 1. FY2024 2Q Financial Overview 2. FY2024 Full-year Forecast All Rights Reserved. Copyright © 2018－2021. Nifco Inc. 2
Slide 3: Summary
Summary • Quarterly operating profit reached a record historical high. Q2 • Quarterly operating profit margin exceeded 14%. Overview • Operating profit margin in the first half of FY2024 exceeded 14%. • Steady progress, and no revision in our guidance FY2024 for FY2024. Full-year • Automobile produc
Slide 4: Agenda
Agenda 1. FY2024 2Q Financial Overview 2. FY2024 Full-year Forecast All Rights Reserved. Copyright © 2018－2021. Nifco Inc. 4
Slide 5: Financial Highlights
1. Financial Highlights Steady Progress, though Automobile Production is Uncertain • Sales grew to the same level as the previous year before transfer of subsidiary engaged in business for German customers, despite the impact of yen depreciation. • OP margin remained at a high level of 14% because o
Slide 6: Overview of FY2024 Q2 Consolidated
2. Overview of FY2024 Q2 Consolidated Achieved YoY and QoQ Increases in Revenue • Sales decreased in year-on-year due to transfer of subsidiary engaged in business for German customers. • OP margin improved in year-on-year and quarter-on-quarter. FY2023 FY2024 (JPN) 2Q 1Q 2Q YoY Net Sales 90.9bn 86.
Slide 7: Overview of FY2024 H1 Consolidated
3. Overview of FY2024 H1 Consolidated Achieved YoY Increase in Revenue Because of Transfer of Subsidiaries • OP margin in the first half of FY2024 exceeded 14%. • Progress: Sales 52%, OP 56% FY2022 FY2023 FY2024 (JPN) 1H 1H 1H YoY Net Sales 148.4bn 178.8bn 176.2bn -1.5% Operating profit 15.2bn 20.7b
Slide 8: FY2024 H1 Consolidated OP (YoY) Operating Profit Analysis
4. FY2024 H1 Consolidated OP (YoY)1 Operating Profit Analysis (YoY) • Marginal profit ratio increase was driven by the improve of variable cost such as material cost. • Fixed cost increase was mainly due to the labor cost increase. (JPN) +2.8bn -2.5bn +2.1bn +1.2bn +0.8bn 25.1bn 20.7bn Operating pro
Slide 9: FY2024 H1 by Segment (Sales)
5. FY2024 H1 by Segment (Sales) Progress in Each Region is within Expectations 1 • Sales in Japan decreased due to decline of production volume and mold sales. • Exchange rate impact is positive（impact :12.1bn）. (JPN) FY2023 1H FY2024 1H YoY Note Consolidated 178.8bn 176.2bn -1.5% Plastics 161.8bn 1
Slide 10: FY2024 H1 by Segment (OP)
6. FY2024 H1 by Segment (OP) Strong Performance, Consolidated OPM Achieved 14% 1 • Margin improved in each region of Industrial plastic parts & components. • Margin decline of Bedding & furniture was covered by Industrial plastic parts & components. (JPN) FY2023 1H FY2024 1H YoY Note Consolidated 20
Slide 11: Customer Base
7. Customer Base (average installed value per vehicle and customer mix) Installed Value Per Vehicle Increased, and MP ratio Remained at a High Level • Installed value per vehicle is expected to increase steadily. • Marginal profit ratio is in recovery. 122.9bn 176.2bn (yen/units) 9% Other non-Japane
Slide 12: Agenda
Agenda 1. FY2024 2Q Financial Overview 2. FY2024 Full-year Forecast All Rights Reserved. Copyright © 2018－2021. Nifco Inc. 12
Slide 13: FY2024 Forecast (Outlook)
8. FY2024 Forecast(Outlook)1 Uncertainty Increases in the Second Half More than Initial Assumption • Uncertainty of automobile production in the second half increases (Japan, ASEAN, China). • Bedding & furniture in China faces difficulties. Previous(August) Current Period covered Assumptions Period
Slide 14: Full Year Guidance: No Revision
9. FY2023 Full Year Guidance No Revision in Full-Year Guidance • Steady progress in the first half, but full-year forecasts remain unchanged because of uncertainty in the second half. (1USD=143yen, 1EUR=155yen) FY2023 1H FY2024 1H (JPN) 1H 1H Full-Year forecast Achievement rate Net Sales 178.8bn 176
Slide 15: CAPEX and Depreciation
10. CAPEX and Depreciation No Drastic Revision • Free cashflow steadily increases excluding temporary factors. FY2023 1H FY2024 1H Change Plan(FY2024) (JPN) CAPEX 3.8bn 8.4bn +4.6bn 23.2bn Depreciation 6.9bn 6.5bn -0.4bn 12.8bn R&D 1.8bn 2.1bn +0.3bn 4.0bn Operating CF 20.6bn 25.5bn +4.9bn 42.6bn In
Slide 16: Shareholder returns
11. Shareholder returns DPS Increased by 6 yen, Consider Buybacks Assertively • DPS is 70 yen, increased by 6 yen. • After 14billion yen buybacks, stay flexible in considering buybacks. FY2019 FY2020 FY2021 FY2022 FY2023 FY2024e 70 Dividend 62 53 62 64 64 yen/share (full year) yen/share yen/share ye
Slide 17: Forward-looking statements
Forward‐looking statements or projections included in this document, including earnings projections, are based on currently available information and certain premises that are judged to be rational at the time of this writing. Actual results may differ greatly from the forecast figures depending on