Espec Corp. · TSE:6859
Espec — Q1 FY2020 Earnings Presentation
33 slides from Espec's earnings presentation, Aug 25, 2020
Slide 1: Results Briefing for the First Quarter of Fiscal 2020 and Full-Year Financial Forecasts
Securities ID code:6859 Results Briefing for the First Quarter of Fiscal 2020 Ending March 2021 and Full-Year Financial Forecasts ESPEC CORP. August 25, 2020
Slide 2: Table of Contents
Table of Contents Financial Result for the First Quarter of Fiscal Ending March 2021 FY 2020 Full-Year Financial Forecasts Reference 1
Slide 3: Financial Result for the First Quarter of Fiscal Ending March 2021
Financial Result for the First Quarter of Fiscal Ending March 2021 * From fiscal 2020, ESPEC EUROPE GmbH (Germany) and ESPEC ENGINEERING (THAILAND) CO., LTD. have been included in the scope of consolidation. 2
Slide 4: Financial Result for the First Quarter of Fiscal Ending March 2021
Financial Result for the First Quarter of Fiscal Ending March 2021 In the first quarter of fiscal 2020, sales and profits both decreased year on year, reflecting the impact of stagnant global economic conditions caused by the COVID-19 pandemic. Year on Year Decreased due to a decline in orders-recei
Slide 5: Summary of Profits and Losses
Summary of Profits and Losses (millions of yen) FY 2019 FY 2020 Year on Year 1Q Results 1Q Results Orders-Received 10,393 8,231 -20.8% Net sales 8,031 6,877 -14.4% Cost of Net Sales 5,170 4,589 -11.2% (Cost of sales ratio) （64.4%） （66.7%） (2.3pt deterioration) Gross profit 2,860 2,288 -20.0% SG&A 2,
Slide 6: Performance by Segment
Performance by Segment (millions of yen) FY 2019 FY 2020 Segment Year on Year 1Q Results 1Q Results Orders-Received 8,599 6,534 -24.0% Equipment Business Net Sales 6,543 5,449 -16.7% Operating Income 286 -22 ― Orders-Received 1,591 1,470 -7.6% Service Business Net Sales 1,387 1,062 -23.4% Operating
Slide 7: Equipment Business
Equipment Business Environmental Test Chambers ■ In Japan, versatile standardized products and customized products both declined across the entire automobile and electronics sectors, as business negotiations stagnated due to constraints on sales activities and customers tended to curtail investment.
Slide 8: Equipment Business
Equipment Business (millions of yen) FY 2019 FY 2020 Year on Year 1Q Results 1Q Results Orders-Received 8,599 6,534 -24.0% Net Sales 6,543 5,449 -16.7% Operating Income 286 -22 ー [Profit ratio(%)] ［4.4%］ ［-0.4%］ 7
Slide 9: Service Business
Service Business (millions of yen) FY 2019 FY 2020 Year on Year 1Q Results 1Q Results Orders-Received 1,591 1,470 -7.6% Net Sales 1,387 1,062 -23.4% Operating Income 46 -125 ー ［3.4%］ ［-11.8%］ [Profit ratio(%)] After-sales Service and Engineering ■ Orders-received were mostly unchanged year on year,
Slide 10: Other Business
Other Business (millions of yen) FY 2019 FY 2020 Year on Year 1Q Results 1Q Results Orders-Received 260 281 8.1% Net Sales 151 422 178.7% Operating Income -55 -12 ー [Profit ratio(%)] ［-36.7%］ ［-3.0%］ Environmental Preservation, Plant Production Systems ■ Both orders-received and net sales increased
Slide 11: Breakdown of Sales by Market
Breakdown of Sales by Market Non-consolidated (Equipment business) 100% その他市場 Other markets 27 31 28 32 27 Automobile market 自動車市場 80% Flat panel display market ﾌﾗｯﾄﾊﾟﾈﾙﾃﾞｨｽﾌﾟﾚｲ市場 15 16 60% 21 19 24 4 Electronic device 電子部品・電子機器市場 14 3 and equipment market 5 3 Semiconductor market 半導体市場 40% 34 34 37
Slide 12: Breakdown of Sales by Region
Breakdown of Sales by Region FY 2019 1Q FY 2020 1Q Overseas sales ratio ：４８．０％ Overseas sales ratio ：５０．４％ FY 2019 FY 2020 １Q １Q Total: 8,031 million yen Total: 6,877 million yen （Overseas sales： 3,858 million yen） （Overseas sales： 3,466 million yen） 11
Slide 13: Full-Year Forecasts for Fiscal 2020 Ending March 2021
Full-Year Forecasts for Fiscal 2020 Ending March 2021 12
Slide 14: Full-Year Forecasts for Fiscal 2020
Full-Year Forecasts for Fiscal 2020 (Republished from Results Briefing for Fiscal 2019 Ended March 2020) In preparation for even fiercer competition, we will make every effort to prevail by achieving our top priority-winning orders. We will strengthen activities in 5G and IoT-related fields as we ex
Slide 15: Full-Year Forecasts for Fiscal 2020
Full-Year Forecasts for Fiscal 2020 (millions of yen) FY 2019 FY 2020 Forecast Full Year First half Second half Full Year Year on Year Orders-received 43,571 16,500 18,500 35,000 -19.7% Net Sales 42,443 17,500 19,500 37,000 -12.8% Gross profit 14,719 5,630 6,470 12,100 -17.8% [Profit ratio (%)] ［34.
Slide 16: FY 2020 Assumed Exchange Rate
FY 2020 Assumed Exchange Rate ■Assumed exchange rate FY 2018 FY 2019 FY 2020 First half Results Results Assumed Results US$（yen） 110.40 108.60 108.72 10５ Reference. FY 2020 Exchange rate sensitivity (for every appreciation of ¥1 against the U.S. dollar) Net Sales A decrease of ¥131 million Operating
Slide 17: Full-Year Outlook for the Business Environment
Full-Year Outlook for the Business Environment ・ China is likely to follow a recovery path, but other areas are expected to face persistently difficult conditions. ・ Cutting-edge technology fields, such as 5G, IoT and automated driving, are expected to gradually recover from the third quarter, altho
Slide 18: Reference: Breakdown of Sales by Region (Assumption)
＜Reference＞ Breakdown of Sales by Region (Assumption) FY 2019 Results FY 2020 Forecast Consolidated Sales : 424 million yen Consolidated Sales : 370 million yen （Forecast） * This illustration of year-on-year was prepared based on information currently available, in order to facilitate understanding
Slide 19: Reference: Regional Sales Forecasts for Fiscal 2020
＜Reference＞ Regional Sales Forecasts for Fiscal 2020 (Assumption of Year-on-Year) Consolidated Sales Japan China Europe South Korea Taiwan &America East Asia ＋１１% Year-on-Year (percent) -４% -８% -１２% -１５％ -２０% * This illustration of year-on-year was prepared based on information currently available,
Slide 20: Segment Financial Forecasts
Segment Financial Forecasts (millions of yen) FY 2019 FY 2020 Forecast Segment Results First half Second half Full Year Year on Year Orders-Received 34,682 13,100 14,600 27,700 -20.1% Equipment Net Sales 34,361 14,000 15,200 29,200 -15.0% Business Operating Income 3,041 450 600 1,050 -65.5% Orders-R
Slide 21: Equipment Business
Equipment Business (millions of yen) FY 2019 FY 2020 Forecast Results First half Second half Full Year Year on Year Orders- 34,682 13,100 14,600 27,700 -20.1% received Net sales 34,361 14,000 15,200 29,200 -15.0% Operating 3,041 450 600 1,050 income ［8.9%］ -65.5% ［3.2%］ ［3.9%］ ［3.6%］ [Profit ratio(%
Slide 22: Reference: Breakdown of Sales by Market (Assumption)
<Reference> Breakdown of Sales by Market （Assumption） Non-consolidated (Equipment business) 100% その他市場 Other markets 27 27 27 80% 自動車市場 Automobile market 16 Flat panel display market ﾌﾗｯﾄﾊﾟﾈﾙﾃﾞｨｽﾌﾟﾚｲ市場 60% 26 22 4 Electronic device 電子部品・電子機器市場 2 3 and equipment market 40% 半導体市場 Semiconductor market
Slide 23: Service Business
Service Business (millions of yen) FY 2019 FY 2020 Forecast Results First half Second half Full Year Year on Year Orders- 6,378 2,900 3,100 6,000 -5.9% received Net sales 6,459 2,600 3,400 6,000 -7.1% Operating 646 -50 400 350 income -45.8% ［10.0%］ ［-1.9%］ ［11.8%］ ［5.8%］ [Profit ratio(%)] 22
Slide 24: Other Business
Other Business (millions of yen) FY 2019 FY 2020 Forecast Results First half Second half Full Year Year on Year Orders- 2,715 600 900 1,500 -44.8% received Net sales 1,831 1,000 1,000 2,000 9.2% Operating 49 0 0 0 income ー ［2.7%］ ［0.0%］ ［0.0%］ ［0.0%］ [Profit ratio(%)] 23
Slide 25: Action Items for FY 2020 (1)
Action Items for FY 2020 (1) (Republished from Results Briefing for Fiscal 2019 Ended March 2020) Cultivation of 5G-related markets ・Expand the digital infrastructure field (mobile phone base stations, data centers, etc.), as well as custom products for handsets and devices, etc. ・Global marketing a
Slide 26: Action Items for FY 2020 (2)
Action Items for FY 2020 (2) (Republished from Results Briefing for Fiscal 2019 Ended March 2020) Strengthen response to new needs in the commissioned testing business ・Expand the scope of compliance with various international standards ・Respond to needs for developmental testing of stationary batte
Slide 27: Investment plan
Investment plan Strategic R&D 5 billion yen 11 billion yen investment expenditures Ordinary 8 billion yen investment Total 13 billion yen ■Main Capital Investments ・Installation of all-weather laboratory (large-scale multipurpose environmental testing equipment) ・Conversion to smart production of cu
Slide 28: FY 2020 Dividend Forecast
FY 2020 Dividend Forecast Basic policy on profit distribution We recognize that passing on profits to our shareholders is a key priority and that raising corporate value on a lasting basis is fundamental to raising shareholder value. Dividends are decided taking into account sustainability and the d
Slide 29: Strengthen Management Foundation and Promote ESG
Strengthen Management Foundation and Promote ESG (Republished from Results Briefing for Fiscal 2019 Ended March 2020) Under the corporate philosophy, THE ESPEC MIND, the Company is aiming for sustainable growth E （Environmental） (1)7th Mid-term Plan on the Environment (2)Contribute to reducing the e
Slide 30: METI Global Niche Top Companies Selection 100 for Fiscal 2020
ＴＯＰＩＣＳ （June, 2020） Ministry of Economy, Trade and Industry (METI) Global Niche Top Companies Selection 100 for Fiscal 2020 ESPEC was selected as a winner for the second time, following on from fiscal 2013. With Global Niche Top Companies Selection 100 (set up in fiscal 2013), METI recognizes compan
Slide 31: Expanded Environmental Stress Chamber AR Series Lineup
ＴＯＰＩＣＳ （August, 2020） （June, 2020） Installed large-scale testing Expanded Environmental Stress equipment in the Battery Safety Chamber AR Series Lineup Certification Center Launched four new models as rapid-rate Installed one of Japan’s largest temperature cycle temperature cycle type products, brin
Slide 32: Quality is more than a word
Quality is more than a word ESOEC ESPEC CORP.
Slide 33: Forward-looking statements and inquiries
These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f