Asahi Diamond Industrial Co., Ltd. · TSE:6140

Asahi Diamond Industrial — FY2023 Earnings Presentation

28 slides from Asahi Diamond Industrial's earnings presentation, May 24, 2024

  1. Slide 1: Fiscal Year ending March 2024 Financial Results Briefing

    Fiscal Year ending March 2024 Financial Results Briefing May 24, 2024

  2. Slide 2: Contents

    Contents 01 FY2023 Financial Results 02 FY2024 Forecasts 03 Mid-Term Management Plan Progress -2- ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

  3. Slide 3: Financial Results (Consolidated)

    Financial Results (Consolidated) Unit:Millions of yen FY2022 FY2023 YoY Change Result ％ Result ％ YoY Change (%) Net sales 39,320 100.0 38,653 100.0 ▲667 ▲1.7 Operating profit 2,506 6.4 1,526 4.0 ▲979 ▲39.1 Ordinary profit 3,275 8.3 2,408 6.2 ▲867 ▲26.5 Profit attributable to owners of parent 2,765 7

  4. Slide 4: Quarterly Results and Trends (Consolidated)

    Quarterly Results and Trends (Consolidated) Unit:Millions of yen FY2023 1Q 2Q 3Q 4Q Result ％ Result ％ Result ％ Result ％ Net sales 9,028 100.0 9,799 100.0 10,157 100.0 9,668 100.0 Operating profit 252 2.8 385 3.9 425 4.2 463 4.8 Ordinary profit 556 6.2 659 6.7 585 5.8 607 6.3 Profit Attributable to 5

  5. Slide 5: Net Sales and Composition by Industry (Consolidated)

    Net Sales and Composition by Industry (Consolidated) Unit:Millions of yen FY2022 FY2023 YoY Change Net sales ％ Net sales ％ YoY Change (%) Electronics and 14,757 37.5 14,684 38.0 ▲72 ▲0.5 Semiconductor Transportation 8,282 21.1 9,204 23.8 922 11.1 Machinery 10,640 27.0 9,434 24.4 ▲1,206 ▲11.3 Stone a

  6. Slide 6: Net Sales Breakdown by Industry: Electronics and Semiconductor

    Net Sales Breakdown by Industry : 1.Electronics and Semiconductor (Includes Electroplated Diamond Wire) Semiconductor and Electronic Full Year Net sales Electroplated Diamond Wire Sales Component (Millions of yen) Net Sales Expect Electroplated Diamond Wire Despite sluggish demand for electronic com

  7. Slide 7: Net Sales Breakdown by Industry: Transportation

    Net Sales Breakdown by Industry : 2. Transportation Full Year Net sales (Millions of yen) 10,000 8,757 8,115 8,282 9,204 Automobile 8,000 6,800 6,000 Sales of related tools increased, mainly due to 4,000 a recovery in automobile production as a result 2,000 of the semiconductor shortage. 0 FY2019 FY

  8. Slide 8: Net Sales Breakdown by Industry: Machinery

    Net Sales Breakdown by Industry : 3. Machinery Net sales Full Year (Millions of yen) 12,500 10,000 8,974 9,832 10,640 9,434 Bearing, Cemented Carbide Tool 7,460 7,500 Sluggish demand in the electronics and 5,000 semiconductor markets has led to a decline in 2,500 sales of related tools of bearing an

  9. Slide 9: Net Sales Breakdown by Industry: Stone and Construction

    Net Sales Breakdown by Industry : 4. Stone and Construction Net sales Full Year (Millions of yen) 6,000 Resource Exploration 4,504 4,124 4,239 4,218 Sales increased due to consistent orders 4,000 3,635 overseas. 2,000 0 Construction in Japan FY2019 FY2020 FY2021 FY2022 FY2023 Sales of related tools

  10. Slide 10: Net Sales Breakdown by Geographical Region (Consolidated)

    Net Sales Breakdown by Geographical Region (Consolidated) Unit:Millions of yen FY2022 FY2023 YoY Change Net Sales ％ Net Sales ％ YoY Change (%) Japan 19,179 48.8 17,387 45.0 ▲1,792 ▲9.3 Taiwan 3,454 8.8 3,080 8.0 ▲373 ▲10.8 China 4,320 11.0 3,704 9.6 ▲616 ▲14.3 Other Asia and Oceania 5,676 14.4 6,041

  11. Slide 11: Consolidated Balance Sheet

    Consolidated Balance Sheet Unit:Millions of yen Fiscal Year Fiscal Year Fiscal Year Fiscal Year ending ending ending ending Assets March March Change Liabilities March March Change 2023 2024 2023 2024 Notes and accounts Cash and deposits 16,375 12,780 ▲3,594 payable - trade 1,477 1,424 ▲53 Notes and

  12. Slide 12: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows Unit:Millions of yen FY2022 FY2023 Change Profit (loss) before income taxes 3,830 3,106 ▲723 Depreciation 2,882 2,969 87 Increase (decrease) in retirement benefit liability ▲162 ▲436 ▲274 Decrease (increase) in trade receivables 774 52 ▲721 Decrease (increase) i

  13. Slide 13: Contents

    Contents 01 FY2023 Financial Results 02 FY2024 Forecasts 03 Mid-Term Management Plan Progress -13- ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

  14. Slide 14: Outline of Forecasts (Consolidated)

    Outline of Forecasts (Consolidated) Unit:Millions of yen FY2023 FY2024 YoY FY2023 FY2024 YoY YoY YoY First Half % First Half % Change Full-year % Full-year % Change Change Change Results Forecasts (%) results forecast (%) Net sales 18,827 100.0 20,000 100.0 1,172 6.2 38,653 100.0 42,500 100.0 3,846

  15. Slide 15: Forecasts for Net Sales and Composition by Industry

    Forecasts for Net Sales and Composition by Industry (Consolidated) Unit:Millions of yen FY2023 FY2024 YoY FY2023 FY2024 YoY YoY YoY First Half % First Half % Change Full-year % Full-year % Change Change Change Results Forecast % results forecast % Electronics and Semiconductor 6,915 36.7 7,700 38.5

  16. Slide 16: Forecasts for Net Sales and Composition by Geographical Region

    Forecasts for Net Sales and Composition by Geographical Region (Consolidated) Unit:Millions of yen FY2023 FY2024 YoY FY2023 FY2024 YoY YoY YoY First Half % First Half % Change Full-Year % Full-Year % Change Change Change Results Forecast (%) Results Forecast (%) Japan 8,615 45.8 8,600 43.0 ▲15 ▲0.2

  17. Slide 17: Capital Expenditures Results and Plan

    Capital Expenditures 「Results and Plan」 Capital Expenditure Depreciation (Millions of yen) (Millions of yen) 10,000 4,000 8,600 3,400 8,000 3,000 2,773 2,871 2,803 2,886 6,527 6,000 4,998 2,000 4,000 2,276 1,000 2,000 1,605 0 0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 Pl

  18. Slide 18: Contents

    Contents 01 FY2023 Financial Results 02 FY2024 Forecasts 03 Mid-Term Management Plan Progress -18- ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

  19. Slide 19: Top global niche manufacturer supporting the world through innovation

    What Lies Beyond the Mid-Term Management Plan 2025 Our goal for "VISION2030" Top global niche manufacturer supporting the world through innovation Three elements to achieve Strengthening Focus on growth Proactive of sectors/areas of Product brand power expertise Development Sales expansion through E

  20. Slide 20: Focus on Semiconductor Segment

    Progress on Priority Themes of Mid-Term Management Plan 2025 Focus on Semiconductor Segment Aim for high profitability and become industry-leading by focusing management resources on electronics & semiconductor segment Development and Manufacturing  Development of tools for SiC power semiconductors

  21. Slide 21: Sales Growth Rate of 5 Focused Products in FY2025

    Progress on Priority Themes of Mid-Term Management Plan 2025 Focus on semiconductor segment Sales Growth Rate of 5 Focused Products in FY2025 Billions of yen -21- ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

  22. Slide 22: Power Semiconductors Market

    Power Semiconductors Market (Source: Fuji Keizai, FY2023 Current Status and Future Outlook of the 10 Billions of yen Next-Generation Power Devices and Power Electronics Equipment Market） ▼ Reason for focusing on the SiC-based power semiconductor market  This market is expected to continue growing a

  23. Slide 23: Management Infrastructure Enhancement

    Progress on Key Themes of Mid-Term Management Plan 2025 Management Infrastructure Enhancement IT System: Visualization of management figures and streamlining of operations  Revamp of core system 《to be operational from FY2026》  SFA (Sales Force Automation) implementation《started in April 2024》 Glo

  24. Slide 24: Optimize Resources

    Progress on Key Themes of Mid-Term Management Plan 2025 Optimize Resources Reorganize business domain and optimize internal and external resources Intra-group optimization  Analysis of business areas and liquidation of unprofitable divisions  Reorganization of manufacturing and sales network （ Com

  25. Slide 25: Target for FY2025

    Target for FY2025 Target for FY2023 FY2024e FY2025 Consolidated net sales 38,653 42,500 49,000 (Millions of yen) Consolidated operating income (Millions of yen) 1,526 3,100 4,900 Consolidated operating 4.0 7.3 10.0 income margin(%) ROE（％） 3.4 4.2 More than 6.0 PBR 0.8 － More than 1.0 -25- ©All right

  26. Slide 26: Capital Policy and Shareholder Returns

    Capital Policy Capital Policy and Shareholder Returns Results of FY2023 Applicable period: FY2023〜FY2025 • Dividend payout ratio 73.8％  Dividend payout ratio: 50% or more  Total return ratio: 120% or more (3-year average) • Total return ratio 156％ ROE︓More than 6% PBR︓More than 1.0 • ROE 3.4％ • PB

  27. Slide 27: Forward-looking statements notice

    ・This material contains forward-looking statements other than historical facts. These forecasts and plans are based on information currently available to us and certain assumptions that we believe to be reasonable. Actual results may differ materially from these forecasts due to a variety of factors

  28. Slide 28: ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

    ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Asahi Diamond Industrial — FY2023 Earnings Presentation on 6ix