Shinko Shoji Co., Ltd. · TSE:8141
Shinko Shoji — H1 FY2025 Earnings Presentation
41 slides from Shinko Shoji's earnings presentation, November 2024
Slide 1: Interim Financial Results for the Fiscal Year Ending March 31, 2025
Interim Financial Results for the Fiscal Year Ending March 31, 2025 ■Overview of Interim Financial Results ■Business Status ■Medium-Term Management Plan and Strategies ■Full-year outlook November 2024 Tatsuya Ogawa, President
Slide 2: Disclaimer
Disclaimer This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects. 1
Slide 3: Notes on handling materials
Notes on handling materials The Forecast in this presentation is based on the information that is available at the present moment. Because it includes uncertainties and risks, there is a possibility that actual performance will differ significantly from those expressed or implied in this Forecast. M
Slide 4: Overview of Interim Financial Results
Overview of Interim Financial Results 3
Slide 5: Overview of Interim Financial Results
Overview of Interim Financial Results Overview of Interim Financial Results In the electronics industry, despite strong demand for AI-related products worldwide, overall demand remains sluggish and the inventory adjustment has continued. Under these market situations, our group (our- Company and con
Slide 6: Overview of Interim Financial Results
Overview of Interim Financial Results Overview of Interim Financial Results 1H 1H Growth Increase/ (Millions of yen) Rate YoY Decrease FYE March/2024 FYE March/2025 （YoY） Results Results Net sales 93,629 64,883 (30.7%) (28,746) Gross Profit 8,415 5,792 (31.2%) (2,623) Selling, general and administra
Slide 7: Interim Consolidated income statement
Overview of Interim Financial Results Interim Consolidated income statement 1H/2023 1H/2024 (April 1st, 2023～September 30, 2023） (April 1st, 2024～September 30, 2024） Net sales 93,629 Net Gross sales profit 64,883 8,415 （Unit : Million yen） Gross profit 5,792 Operating income Ordinary income 3,388 3,
Slide 8: Net sales composition ratio by markets (amount)
Overview of Interim Financial Results Net sales composition ratio by markets(amount) 1H FY/2023 1H FY/2024 (Unit: 100Million yen) 417 300 258 225 134 100 58 52 20 9 7 5 Industry Automotive Office Amusement Consumer Communication automation 7
Slide 9: Net sales composition ratio by markets
Overview of Interim Financial Results Net sales composition ratio by markets 【1H FY/2023】 【 1H FY/2024】 Consumer Communication Communication Consumer 20 7 Amusement 5 9 Amusement 2.1% 0.7% 52, 8.0% 0.8% 1.4% 100, 10.7% Office Office automation automation 58 Industry Industry 134 93,629 417 8.9% 300
Slide 10: Net sales composition ratio by products (amount)
Overview of Interim Financial Results Net sales composition ratio by products(amount) (Unit：100 Million yen) 1H FY/2023 1H FY/2024 572 312 233 219 99 79 30 37 Semiconductors Electronic Devices Assembly Other businesses 9
Slide 11: Net sales composition ratio by products
Overview of Interim Financial Results Net sales composition ratio by products 【1H FY/2023】 【1H FY/2024】 (Unit: Million yen) Other Businesses Other Businesses 3.2% 5.8% Assembly Business Assembly Business 10.7% 12.3% Electronic 93,629 64,883 Semiconductors Electronic Devices Semiconductors 61.2% Devi
Slide 12: Analysis on factor of increase / decrease in net sales
Overview of Interim Financial Results Analysis on factor of increase / decrease in net sales Compared with the previous year Electronic Device Business (Unit：100 Million yen) （Semiconductors） ▲260 936 Electronic Device Business （Electronic devices） Assembly ▲14 Business ▲20 649 Other Businesses ＋7 1
Slide 13: Trend of net sales
Overview of Interim Financial Results Trend of net sales 1H Full fiscal year 179,076 175,847 (Unit： Million yen) 160,000 135,205 120,000 112,000 102,898 89,449 93,629 80,000 64,883 58,590 43,924 40,000 0 FY/2020 FY/2021 FY/2022 FY/2023 FY/2024（Forecast） 12
Slide 14: Gross profit / Gross profit ratio
Overview of Interim Financial Results Gross profit / Gross profit ratio 【1H Results 】 （％） (Unit： Million yen) Gross profit Gross profit ratio 10,000 10.0 8.9 9.0 8.9 9.3 7,981 8,000 8.9 8,415 8.0 6,000 5,792 6.0 5,214 4,000 4,087 4.0 2,000 2.0 0 0.0 FY/2020 FY/2021 FY/2022 FY/2023 FY/2024 13
Slide 15: Operating income / Operating income ratio
Overview of Interim Financial Results Operating income / Operating income ratio 【 1H Results 】 Operating income Operating income ratio （％） (Unit： Million yen) 3.5 3.6 4.0 5,000 10.0 1.9 2.1 4,000 0.7 3,388 3,174 3,000 0 2,000 1,358 1,132 1,000 305 0 0.0 FY/2020 FY/2021 FY/2022 FY/2023 FY/2024 14
Slide 16: Summary Balance Sheet 1 (Assets)
Overview of Interim Financial Results Summary Balance Sheet １ （Assets） (Unit： Million yen) 1H FY March Increase / FY March 2024 decrease 2025 Total assets 99,813 84,811 (15,002) Current assets 92,829 78,069 (14,760) Cash and deposits 13,389 17,160 3,771 Notes and accounts receivable –trade, and cont
Slide 17: Summary Balance Sheet 2 (Liabilities and net assets)
Overview of Interim Financial Results Summary Balance Sheet 2 （Liabilities and net assets） 1H (Unit： Million yen) FY March Increase / FY March 2024 decrease 2025 Total liabilities 43,693 28,912 (14,781) Current liabilities 33,401 18,648 (14,753) Notes and accounts payable – trade 16,354 9,477 (6,877
Slide 18: Interim Consolidated Balance Sheets
Overview of Interim Financial Results Interim Consolidated Balance Sheets (Unit： Million yen) Total assets Total liabilities and net assets (March 31, 2024) （September 30, 2024） (March 31, 2024) （September 30, 2024） Total liabilities Total liabilities Total assets Total assets and net assets and net
Slide 19: Consolidated Statements of Cash Flows
Overview of Interim Financial Results Consolidated Statements of Cash Flows 1H/2024（April 1st, 2024～September 30, 2024) (Unit： Million yen) Cash flow from Cash flow from investing financing activities activities (50) (7,764) Cash and cash Cash and cash equivalents equivalents at the end of period at
Slide 20: Business Status
Business Status 19 E{Shinko ShojiCo.,Ltd.
Slide 21: Business Status
Business Status 1. Business status of Renesas Electronics 2. Sales trends of overseas business 3. Business situations surrounding our core markets 20
Slide 22: Business Status
Business Status 1. Business status of Renesas Electronics 2. Sales trends of overseas business 3. Business situations surrounding our core markets 21
Slide 23: Renesas Electronics Business
Business status of Renesas Electronics 1. Renesas Electronics Business 【Sales comparison of ratio by field 】 【1H FY/2023】 【 1H FY/2024】 Consumer Communication Consumer Communication Amusement 2.3% Amusement 1.1% 0.7% 0.8% 2.5% 2.6% 12 4 13 7 32 Office Industry Office Industry automation 40.8% automa
Slide 24: Business Status
Business Status 1. Business status of Renesas Electronics 2. Sales trends of overseas business 3. Business situations surrounding our core markets 23
Slide 25: Overseas Business sales trends
Sales trends of overseas business 2. Overseas Business sales trends 【Sales of Overseas Subsidiaries】 The end of September 2024 (Unit：100 Million yen) 110.71 122.39 133.53 151.41 142.73 ←US$ 555 546 398 388 351 FY/2020 FY/2021 FY/2022 FY/2023 FY/2024（Forecast） 24
Slide 26: Business Status
Business Status 1. Business status of Renesas Electronics 2. Sales trends of overseas business 3. Business situations surrounding our core markets 25
Slide 27: Core market sales trends (Full year sales)
Business situations surrounding our core markets 3. Core market sales trends （ Full year sales ） Industry Automotive Office automation Amusement (Unit：100 Million yen) 794 771 597 535 545 516 423 403 391 342 286 220 191 173 130 139 125 89 97 80 FY/2020 FY/2021 FY/2022 FY/2023 FY/2024（Forecast） 26
Slide 28: Medium-Term Management Plan and Strategies
Medium-Term Management Plan and Strategies 27
Slide 29: Our Business Areas
Medium-Term Management Plan and Strategies Our Business Areas As a specialized trading company for electronics, To continue to be our customers' best partner Solutions provided by Shinko Shoji.Co.,Ltd Major Markets design development Device & System Proposal Embedded/ Circuit/ DXAI/ICT Software Desi
Slide 30: Regarding capital and business alliance
Medium-Term Management Plan and Strategies Regarding capital and business alliance We have entered into a capital and business alliance agreement with Restar Corporation. ●Details of business alliance Shinko and Restar will build a strategic partnership through the business alliance set forth in the
Slide 31: Concerning Formulation of Medium-Term Management Plan
Medium-Term Management Plan and Strategies Concerning Formulation of Medium-Term Management Plan We have formulated a new three-year medium-term management plan that is based on the verification of Shinko group’s unique business environment, in addition to growth investments and M&A, and co-creation
Slide 32: Important management indicators of Medium-Term Management Plan
Medium-Term Management Plan and Strategies Important management indicators of Medium-Term Management Plan (Unit：100 Million yen) Net sales (Unit：100 Million yen) Profit ROE 2,000 50 45 10.0% 1,700 8.0% 40 8.0% 1,500 1,120 30 6.0% 1,000 20 4.0% 10 1.9% 500 10 2.0% 0 0 0.0% FY/2025 March FY/2028 March
Slide 33: New Semiconductor Supplier Status
Medium-Term Management Plan and Strategies New Semiconductor Supplier Status We are strongly promoting the development of new semiconductor suppliers and aim for early start-up. Negotiations with several companies are ongoing. We will disclose the details as soon as an agreement is reached. Main cus
Slide 34: New Semiconductor Supplier [Faraday Technology Corporation]
Medium-Term Management Plan and Strategies New Semiconductor Supplier [Faraday Technology Corporation] Shinko Shoji is aggressively expanding sales of Faraday's products! Aiming for business of 15 billion yen in 2027! Faraday Strategic Foundry Partnership Faraday Business: IP & ASIC [Leading Faraday
Slide 35: Developing new customers & commercial distribution for existing products
Medium-Term Management Plan and Strategies Developing new customers & commercial distribution for existing products Further expand sales of current products line-up and promote the development of new business. Main customers category OA customers Electronic components（Capacitor/Coil/Resistor etc.） i
Slide 36: AI (Image Recognition AI) Order Example
Medium-Term Management Plan and Strategies AI (Image Recognition AI) Order Example Shinko Shoji Receives Orders for Image Recognition AI Board by SiMa Technologies, Inc.(SiMa)! Application Products for sale（HHHL Production Board） AI Monitoring AI System HHHL(Half-height,Half-length)Board ・ "Low powe
Slide 37: Full-year outlook
Full-year outlook 36 E{Shinko ShojiCo.,Ltd.
Slide 38: Business Outlook for the FY March 2025
Full-year outlook Business Outlook for the FY March 2025 （Million yen） Results for the Forecast for the Forecast for the fiscal year ending fiscal year ending fiscal year ending Increase March 2023 March 2025 March 2025 YoY and previous revised decrease forecast(May,2024) forecast(Oct,2024) Net sale
Slide 39: Our company's Shareholder Return Policy
Full-year outlook Our company's Shareholder Return Policy Our basic policy is to distribute dividends to shareholders with a target consolidated payout ratio of 50% in consideration of the balance between stable and continuous distribution of dividends to shareholders and investment in the growth st
Slide 40: Returning to shareholders - Dividend per share
Full-year outlook Returning to shareholders ● Dividend per share Consolidated Dividend per share dividend payout ratio End of 1H Year end Annual FY March/2025 Forecast （Published Oct 31, 2024） 7.5 yen 8.0 yen 15.5 yen 49.6% Results for the previous fiscal year (Year ended March 31, 2024) 26.5 yen 22
Slide 41: Contact Information
Contact Information Shinko Shoji Co., Ltd. Director Shuji Isshiki Tel: (81)-3-6361-8062 Fax: (81)-3-5437-8481 e-mail: shuji.isshiki@st.shinko-sj.co.jp Head Office: Art Village Osaki Central Tower 13F 1-2-2 Osaki Shinagawa-ku Tokyo 141-8540 Japan HP: https://www.shinko-sj.co.jp/en/ 40