Slide 1: Financial Results for FY2019.12
Financial Results for FY2019.12 February 14, 2020 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Highlights
Highlights FY2019.12 result ⚫Demand progressed according to the forecast (issued on Nov. 8, 2019) (1USD=JPY108) ⚫ Net sales 173.1 billion yen, EBITDA 5.2 billion yen, Operating loss 4.3 billion yen, Ordinary loss 4.6 billion yen, Net loss 4.1 billion yen ⚫ Devices: Demand for smartphones fell far be
Slide 3: FY2019.12 Results
FY2019.12 Results Lower demand for smartphones on Devices impacted the results (Millions of JPY) FY2018.12 FY2019.12 (Jan.-Dec.) (Jan.-Dec.) YoY Results Results Net sales 207,404 173,189 -16.5% Industrial Materials 47,124 46,463 -1.4% Devices 123,541 94,706 -23.3% Medial Technologies 22,351 24,068 +
Slide 4: FY2019.12 Q4 (Oct.-Dec.) Results
FY2019.12 Q4 (Oct.-Dec.) Results (Millions of JPY) FY2019.12 FY2019.12 FY2019.12 FY2019.12 Jan.-Mar.(Q1) Apr.-Jun.(Q2) Jul.-Sep.(Q3) Oct.-Dec.(Q4) QoQ Results Results Results Results Net sales 34,964 38,136 52,309 47,780 -8.7% Industrial Materials 11,672 11,882 11,565 11,344 -1.9% Devices 15,072 18,
Slide 5: Industrial Materials
Industrial Materials Continued sluggish demand for Chinese market in Q4 (Mobility) Net sales trend by application (by quarter) （Millions of JPY) 25,000 ■Sustainable Packaging Materials (Metallized paper) ■Decoration (Others) ■Decoration (Mobility (Automotive)) 20,000 15,000 12,606 11,882 11,775 11,5
Slide 6: Devices
Devices Demand progressed as projected in Q4 Net sales trend by application (by quarter) ■Portable game players, Industrial equipment, Mobility (Automotive), Gas sensors and others ■Smartphones, Tablet devices and others ⚫ Decrease in number of models with force （Millions of JPY) sensor 48,029 50,00
Slide 7: Medical Technologies
Medical Technologies Demand progressed steadily and grown consistently for the full year Net sales trend by application (by quarter) ■Business media （Millions of JPY) ■Medical devices (Own brand) 10,000 ■Medical devices (Contract manufacturing) FY2018 FY2019 22,351 24,068 7,500 6,336 6,145 6,140 6,0
Slide 8: Information and Communication
Information and Communication Net sales trend by application (by quarter) （Millions of JPY) ■Others 8,000 ■Publication printing ■Commercial printing Business restructuring January 7, 2019 6,000 3,873 3,974 4,000 3,121 2,967 2,354 1,977 2,000 1,624 1,462 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2018.12 FY2019.12
Slide 9: Forecast for FY2020.12
Forecast for FY2020.12 CONFIDENTIAL AND PROPRIETARY 9
Slide 10: Leverage Measures to Strengthen Profitability
Leverage Measures to Strengthen Profitability in 2020 H1, improve profitability in 2020 H2 2019 (Result) 2020 (Forecast) 2021 (Image) 120,000 IT：non-IT=45:55 IT：non-IT=35:65 30% 25% （Millions of JPY) 80,000 20% IT IT IT IT 15% 40,000 Non 10% Non Non -IT Non -IT -IT -IT 5% 0 0% H2: Profitability to b
Slide 11: Devices: Build optimal business structure for decreasing demand
Devices Build optimal business structure for decreasing demand through Measures to Strengthen Profitability Implement Measures Management policy Addressing to to Strengthen for IT decreasing demand Profitability ⚫ Reduce investment Reduce variable labor costs Reduce fixed costs About 3.5 billion JPY
Slide 12: Industrial Materials: Recovery of profitability and re-growth of sales
Industrial Materials Recovery of profitability and re-growth of sales Japan Europe ⚫Lower factory operation due ⚫Market share extension for to lower demand from China metallized paper (Sustainable Packaging Materials) Reduce fixed cost (about 500 North America million JPY) Sales offices: Germany, UK
Slide 13: Film-based touch sensor expand for Mobility (automotive)
Introduction: Growing Products Film-based touch sensor expand for Mobility (automotive) ■Left axis: Automotive touch module market size Right axis: Nissha sales forecast of film-based touch sensor for Mobility (Thousand units) 80,000 Market CAGR 4.6% (Millions of JPY) 75,000 12,000 70,000 8,000 65,0
Slide 14: Growth of medical wearable sensors
Introduction: Growing Products ■ Growth of medical wearable sensors Left axis: Market size of connected medical devices Right axis: Nissha sales forecast of medical wearable sensors ⚫ Contract manufacturing (Billion JPY) Market CAGR 16.2% ⚫ Develop wearable sensors utilizing 3,000 10 2,500 the desig
Slide 15: Market entry in DDS: Acquisition of Zonnebodo Pharmaceutical completed
M&A completed Market entry in DDS Acquisition of Zonnebodo Pharmaceutical completed ⚫ Gain of business base for pharmaceuticals as business license, manufacturing facility, quality management system, sales channels, etc. ⚫ Enhance of development for film type of pharmaceuticals ⚫ Target for entry in
Slide 16: Securing leading position in metallized paper market
M&A completed Securing of the leading position in metallized paper market by share extension Acquisition of Eurofoil Paper Coating in Germany completed 20,000 Market size of sustainable packaging ⚫ Profitability improvement expected by (Billion JPY) for food in global leading the metallized paper ma
Slide 17: FY2020 Investment plan
FY2020 Investment plan ⚫ Total investment: 14.0 billion JPY ⚫ M&A: 6.0 billion JPY, mainly in overseas ⚫ 3.0 billion JPY is for the deals made in FY2019 ⚫ Capital investment: 8.0 billion JPY for effective growth investment and renewal facilities ⚫ Allocate gain on sales of strategically held shares
Slide 18: FY2020.12 Forecast
FY2020.12 Forecast H1 include temporary expenses for Measures to Strengthen Profitability Reflect the effect from H2 （Millions of JPY) Reference FY2019.12 FY2020.12 FY2020.12 FY2020.12 FY2020.12 YoY (Jan.-Dec.) (Jan.-Dec.) H1 H2 (Jan.-Dec.) Result Forecast （Jan.-Jun.) (Jul.-Dec.) Forecast Forecast F
Slide 19: FY2020.12 Forecast: Conversion from JGAAP to IFRS
FY2020.12 Forecast Conversion from JGAAP to IFRS FY2020.12 ✔ FY2020.12 （Millions of JPY) Difference Adjustment JGAAP IFRS Net sales 166,000 166,000 0 Depreciation -833 Amortization of goodwill Operating profit -815 -2,000 -1,185 +1,648 *Extraordinary loss -2,000 Operating profit margin -0.5% -1.2% -
Slide 20: Reference: Capital investment, Depreciation, M&A, Amortization and R&D
Reference: Capital investment, Depreciation, M&A investment, Amortization of goodwill and R&D （Millions of JPY) FY2019.12 Q1 FY2019.12 Q2 FY2019.12 Q3 FY2019.12 Q4 (Jan.-Mar.) (Apr.-Jun.) (Jul.-Sep.) (Oct.-Dec.) Results Results Results Results Capital 1,602 2,187 2,524 1,637 investment Depreciation
Slide 21: This document contains confidential information and all rights regarding the document belong to Nissha
This document contains confidential information and all rights regarding the document belong to Nissha Group. Therefore, any disclosure and/or leakage of the document to any third parties other than recipients of the documents, and copy, transfer and/or citation of the document without the prior aut