Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — FY2020 Earnings Presentation
39 slides from Nissha Co.ltd's earnings presentation, Feb 12, 2021
Slide 1: Financial Results for FY2020.12 and the 7th Medium-term Business Plan
Financial Results for FY2020.12 and the 7th Medium- term Business Plan February 12, 2021 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Today's Presentation
Today’s Presentation lFinancial Results for FY2020.12 lSustainability Vision (2030) lThe 7th Medium-term Business Plan (2021-2023) ©2021 Nissha Group 2
Slide 3: Financial results highlights
Financial results highlights FY2020 Results l Increase in sales and profits compared the previous fiscal year (1USD=JPY106) l Net sales 180.0 billion yen, Operating profit 7.2 billion yen, Profit before tax 7.0 billion yen, Profit attributable to owners of parent 7.0 billion yen l Lowered break-even
Slide 4: FY2020 Results (Full-Year)
FY2020 Results (Full-Year) Year-on-year increase in sales and profits Product demand for Devices drove sales growth; production volume equalized, and operating profit recovered to a significant degree. Industrial Materials experienced a turnaround in demand during the second half and profit increase
Slide 5: FY2020 Q4 (3 months) Results
FY2020 Q4 (3 months) Results (Millions of JPY) FY2019 FY2020 FY2020 Q4 Q3 Q4 YoY Results Results Results Net Sales 47,679 51,620 51,221 +7.4% Industrial Materials 11,472 12,741 13,703 +19.4% Devices 28,062 32,153 29,965 +6.8% Medical Technologies 5,862 5,068 5,213 -11.1% Information and Communicatio
Slide 6: Industrial Materials
Industrial Materials l Product demand for mobility components recovered rapidly in the second half Net sales trend by ■ ■Sustainable Materials (Metallized paper) application (by quarter) ■ ■Decoration (Others) (Millions of JPY) ■ ■Decoration (Mobility (Automotive/Transport equipment)) 15,000 13,703
Slide 7: Devices
Devices l Q4 product demand for IT devices increased year on year Net sales trend by ■ ■Portable game players, Industrial equipment (logistics related), Mobility (Automotive/Transport equipment), Gas sensors and (Millions of JPY) application (by quarter) others ■ ■Smartphones, Tablet devices and oth
Slide 8: Medical Technologies
Medical Technologies l Product demand for contract development and manufacturing (CDMO) recovered from the down trend caused by COVID-19 Net sales trend by ■ ■Business media (Millions of JPY) application (by quarter) ■ ■Medical devices (Own brand) ■ ■Medical devices (CDMO) 7,500 6,145 6,140 5,922 5,
Slide 9: Information and Communication
Information and Communication Net sales trend by ■ ■Others application (by quarter) ■ ■Publication printing (Millions of JPY) ■ ■Commercial printing 3,000 2,354 1,977 1,947 1,851 2,000 1,624 1,462 1,201 1,233 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2019 (J-GAAP) FY2020 (IFRS) ©2021 Nissha Group 9
Slide 10: Sustainability Vision / The 7th Medium-term Business Plan
Sustainability Vision (2023) The 7th Medium-term Business Plan (2021-2023)
Slide 11: Sustainability Vision (2030)
Sustainability Vision (2030) ©2021 Nissha Group 11
Slide 12: Growth history through transformation (2001-2020)
Growth history through transformation (2001-2020) Reorganized target markets and enhanced business foundation ■ Decoration products for IT devices Growth in new markets ■ Film touch sensors for IT devices l Market entry for Medical Devices, ■ New markets ■ Traditional fields and other Mobility, and
Slide 13: Transformation on growth stages
Transformation on growth stages 2000〜 Mid-2010s to Mid-2020s Multiple markets Focus on IT devices Medical Devices, Mobility, Sustainable (High volatility) Materials, IT devices (Stable growth) Focus on Single Products Varied product lineups 2000~: IMD 2010~: Film touch sensors Modular products Expor
Slide 14: Business foundations supporting the next stage of growth
Business foundations supporting the next stage of growth 5th (2015-2017) Medical Devices 6th (2018-2020) l Market entry through M&A Medium-term l Strengthened business foundations globally (North and Central America, Europe, Business Plans Japan) l Acquired design and development capabilities to bec
Slide 15: Global business expansion
Global business expansion Progressed in marketing, development, and manufacturing capabilities for priority markets in each region (15 in Japan, 40 overseas) North America Europe Asia Japan NICA NICE NICC NICK Nissha Innovation Center Nissha Innovation Center (7th Medium-term Business Plan) Nissha I
Slide 16: Satisfy market needs by combining Core Technologies and peripheral technologies
Satisfy market needs by combining Core Technologies and peripheral technologies Medical Control Devices Product design technologies Metal Patterning processing Evaluation Production technologies Mobility engineering Molding Coating Nissha Core Technologies Sustainable Materials Printing Materials Mo
Slide 17: Mission
Mission We realize the enrichment of people’s lives by creating (Renewed January 2018) technology and developing it into economic and social value through the diverse capabilities, passion, and leadership of the global Nissha Group. ✔ ✔ Nissha Philosophy ©2021 Nissha Group 17
Slide 18: Sustainability Vision (Where we want to be in 2030)
Sustainability Vision (Where we want to be in 2030) Aiming for 150 billion yen of net sales in medical business ■ Medical ■ Mobility ■ Sustainable Materials ■ IT devices ■ Others Economic value l ROE 15% 2030 Net sales Social value 300 billion yen ROE 15% l Realize the enrichment of people’s lives b
Slide 19: Where we want to be in 2030: Medical
Where we want to be in 2030: Medical Medical Devices: Where we will contribute Changing environment Changing in medical systems l Aging society l Medical care perspectives l Increase in acute, chronic, and Focus on diagnosis and treatment à Care cycle complex diseases l Where medical services are pe
Slide 20: Sophisticated product lineups for priority fields
Where we want to be in 2030: Medical Sophisticated product lineups for priority fields Nissha product areas (CDMO) Priority fields l Home and remote monitoring of health status Heart diseases l Wearable sensors *Market size: approx. 4 trillion yen l Biometric monitoring in hospitals *CAGR 7.8% l Med
Slide 21: Where we want to be in 2030: Medical growth strategies
Where we want to be in 2030:Medical growth strategies l Pursue vertical integration (design, development, production, sales) 2030 Net sales M&A l Expand geographically (Europe, Asia) 150 billion yen l Acquire new product lineups (Vision) l Expand to other therapeutic fields l Leverage products and p
Slide 22: Where we want to be in 2030: Mobility
Where we want to be in 2030: Mobility Emphasis on in-vehicle comfort CASE, Sustainability as new business opportunities Social issues Business opportunities Value provided Comfort Design Comfortable HMI* for humans Interior space of the Various content services Decorative + functional modules Cabin
Slide 23: Where we want to be in 2030: Sustainable Materials
Where we want to be in 2030: Sustainable Materials Providing products that contribute to the formation of a recycling-oriented society Social issues Our value proposition l Decarbonization Metallized paper to replace plastics l Protection of the natural environment l Expand applications for food pac
Slide 24: The 7th Medium-term Business Plan (2021-2023)
The 7th Medium-term Business Plan (2021-2023) ©2021 Nissha Group 24
Slide 25: The 7th Medium-term Business Plan [Target markets]
The 7th Medium-term Business Plan [Target markets] Non-IT on mainstream toward 2030 The 6th Medium-term The 7th Medium-term Business Plan Business Plan Establish a foundation for growth through Acquired business bases in global synergies acceleration Net sales priority markets 300 billion yen l Ente
Slide 26: Medium-term Vision (1): Global synergies acceleration
Medium-term Vision (1) Establish a foundation for growth through global synergies acceleration Growth areas Medical Sustainable Mobility Devices Materials IT devices l Demonstrate synergies in business, assets, and l Pursue profitability and human resources capabilities; grow top line efficiency, ev
Slide 27: Medium-term Vision (2): ROE 9%+, Operating cash flows
Medium-term Vision (2) Aiming for ROE of 9%+, Operating cash flows of 43.5 billion yen (3-year cumulative, including M&A) 6th Medium-term 7th Medium-term Business Plan Business Plan 2020 Results 2023 Vision* ROE 9.0% 9%+ Operating cash flows, three-year cumulative (Millions of JPY) 22,057 ✔ 43,500 N
Slide 28: Business portfolio
[Business portfolio] Reallocate cash and resources generated by Devices to drive growth in Medical Technologies and Industrial Materials 2020 2023 High Growth ●Medical Technologies ●Industrial Materials Growth ●Devices Potential Growth Pursue profitability and efficiencies Low * Size of circle = Net
Slide 29: Medical Technologies
Medical Technologies Expand the scope of medical therapeutic fields as a CDMO and strengthen development in Japan ■ Business Media Net sales ■ Medical Devices (Own brand) Net sales 50,000 20.0% Net sales ROIC ■ Medical Devices (CDMO) Net sales CAGR 19% 2%→6％ ● Operating profit margin (Millions of JP
Slide 30: Industrial Materials
Industrial Materials Grow top line sales with new products ■ Sustainable Materials Net sales 80,000 ■ Decoration (Other fields) Net sales 20.0% Net sales ROIC ■ Decoration (Mobility) Net sales CAGR 6% 1%→6％ ● Operating profit margin (Millions of JPY) 58,500 Mobility 60,000 15.0% l Launch of new prod
Slide 31: Devices
Devices Pursuing profitability and efficiency, sales for mobility are growing ■ Smartphones and tablet devices, etc. Net sales 160,000 ■ Mobility Net sales 20.0% Net sales ROIC ■ Portable game players, industrial terminals (logistics related), etc. CAGR - 28%→23％ Net sales 140,000 ● Operating profit
Slide 32: Cash allocation (three-year cumulative)
Cash allocation (three-year cumulative) Allocate resources, mainly to growth areas Maintain stable dividend payments to shareholders Cash inflow Cash outflow Cash inflow l Generate stable operating cash flows Asset sales, etc. l Continue to reduce strategic Improve financial soundness shareholdings
Slide 33: Sustainability initiatives
Sustainability initiatives ● Create business opportunities ● Mitigate risks Actions for the 7th Medium- Progress to date term Business Plan l Expand sustainable materials l Sustainable materials (pulp molding and materials) (metallized paper) l Expand products for mobility l Products for mobility (d
Slide 34: FY2021 full-year forecast
FY2021 full-year forecast Increase in operating profit expected, despite product demand decreasing for smartphones (Millions of JPY) FY2020 FY2021 FY2021 FY2021 Full-year Full-year H1 H2 YoY Results Forecast Forecast Forecast Net sales 180,006 169,000 88,500 80,500 -6.1% Industrial Materials 48,858
Slide 35: (Reference) Nissha Value Creation Process
(Reference) Nissha Value Creation Process Input Market Output Outcome Competency Solve social issues through Social value Management (Behavioral characteristics) business activities (Impact) capital Growth for Medical devices in Solutions to medical change diagnostic and issues Financial therapeutic
Slide 36: (Reference) Net sales by business and by market
(Reference) Net sales by business and by market (consolidated basis) FY2020 FY2023 Results Vision 180 billion yen 195 billion yen M&A 15,000 Other Other M&A (Millions of JPY) 150,000 Other Devices IT devices Devices 40,000 80,312 Mobility 100,000 10,000 Sustainable 20,000 Materials Industrial Medica
Slide 37: (Reference) FY2021 Forecast: Capital investment, D&A, R&D
(Reference) Capital investment, Depreciation and amortization, R&D Depreciation and Capital investment amortization R&D (Millions of JPY) (Millions of JPY) (Millions of JPY) 15,000 15,000 5,000 14,572 4,000 3,949 3,659 10,000 10,000 10,325 10,074 3,000 3,000 9,000 8,948 8,430 9,300 2,869 7,896 2,000
Slide 38: (Reference) Capital investment, D&A, M&A investment, R&D (FY2020 results)
(Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2020 results) (Millions of JPY) Q1 Q2 Q3 Q4 Results Results Results Results Capital investment 1,435 1,041 2,475 2,944 Depreciation and 2,074 2,076 2,061 2,218 amortization M&A investment 1,431 213 *2018/12期より国内グルー
Slide 39: Among the information included in this presentation and provided at investor briefings and conferences,
Among the information included in this presentation and provided at investor briefings and conferences, performance targets, plans, outlooks, strategies and other information that is not constituted of actual past facts, is information that has been judged reasonable by the managers of the Company b