Nihon Dempa Kogyo Co., Ltd. · TSE:6779

Nihon Dempa Kogyo — FY2021 Earnings Presentation

35 slides from Nihon Dempa Kogyo's earnings presentation, May 27, 2022

  1. Slide 1: Results of Operations for Fiscal 2021 (Ended March 31, 2022)

    Results of Operations for Fiscal 2021 (Ended March 31, 2022） Nihon Dempa Kogyo Co., Ltd. May 27, 2022 [Note] Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements abo

  2. Slide 2: Contents

    ＜Contents＞ １．Results for FY2021 (Ended March 31, 2022) ２．Outlook for FY2022 (Ending March 31, 2023) ３．Medium-Term Management Plan (FY2022ーFY2024) (1) Summary (2) Business Strategies – As of March 10, 2022 – Presented by Hiromi Katoh, Representative Director and President Copyright © 2022 Nihon Dempa

  3. Slide 3: Consolidated Financial Results (Fiscal year)

    1. Results for FY2021 (Ended March 31, 2022) Consolidated Financial Results (Fiscal year) ◼ Operating income (excluding temporary factors) turned to a positive ¥4.5 billion for FY2021 ◼ The operating income ratio improved markedly to 10.0% (excluding temporary factors) FY2021 FY2020 FY2021 YoY Outlo

  4. Slide 4: Sales by Application (Year on Year)

    1. Results for FY2021 (Ended March 31, 2022) Sales by Application (Year on Year) ◼ Sales vastly increased, particularly for automotive electronics Net Sales Factors of Increase/Decrease (Billion yen) FY2020 FY2021 YoY Demand has risen sharply since 2Q FY2020. Automotive electronics 18.3 22.5 +4.3 St

  5. Slide 5: Operating Income – Analysis of Changes in Profit from FY2021

    1. Results for FY2021 (Ended March 31, 2022) Operating Income – Analysis of Changes in Profit from FY2021 – ◼ Profitability improved substantially due to the profit contributions generated by the improving terms of trade in the automotive electronics market and the increased sales of 76.8MHz crystal

  6. Slide 6: Consolidated Financial Results (Quarterly)

    1. Results for FY2021 (Ended March 31, 2022) Consolidated Financial Results (Quarterly) ◼ Automotive electronics sales have been fueling a sales recovery since 2Q of FY2020 ◼ Earnings performance has vastly improved due to the combination of the streamlining of the corporate structure and the improv

  7. Slide 7: Sales by Application – Sales by Main Application

    1. Results for FY2021 (Ended March 31, 2022) Sales by Application – Sales by Main Application – ◼ Orders of automotive electronics remain strong and sales are solid ◼ Industrial equipment sales are flat for products for base stations ◼ Mobile communications sales are strong for 5G smartphone (Billio

  8. Slide 8: Consolidated Financial Position

    1. Results for FY2021 (Ended March 31, 2022) Consolidated Financial Position ◼ Financial position is improving from the reduction of interest-bearing debt and growing profits Received ¥5 billion investment (Billion yen) through issuance of Class A shares in August 2020 Interest-bearing debt 27.9 *1

  9. Slide 9: Contents

    ＜Contents＞ １．Results for FY2021 (Ended March 31, 2022) ２．Outlook for FY2022 (Ending March 31, 2023) ３．Medium-Term Management Plan (FY2022ーFY2024) – As of March 10, 2022 – Copyright © 2022 Nihon Dempa Kogyo All Rights Reserved 9

  10. Slide 10: Consolidated Financial Forecast

    ２. Outlook for FY2022 (Ending March 31, 2023) Consolidated Financial Forecast ◼ Forecast for ¥5.0 billion in operating income for FY2022 ⇒ Profit expected to increase year on year in real terms (profit in FY2021 includes a one-off profit of ¥640 million) FY2021 FY2022 Forecast YoY (Million yen) Full

  11. Slide 11: Sales Forecast by Application

    ２. Outlook for FY2022 (Ending March 31, 2023) Sales Forecast by Application ◼ Net sales are expected to increase by ¥4.6 billion from FY2021, mainly for automotive electronics Net Sales FY2022 Factors of Increase/Decrease (Billion yen) FY2021 Forecast YoY Automotive Sales are affected by the lockdow

  12. Slide 12: Operating Income – Analysis of Changes in Profit from FY2021

    ２. Outlook for FY2022 (Ending March 31, 2023) Operating Income ー Analysis of Changes in Profit from FY2021 – ◼ Profit expected to increase with the growth in sales, even amid higher parts prices and fixed costs (billion yen) ＋¥0.46 billion Exchange rate Change in fluctuation*1 Increase in inventorie

  13. Slide 13: Capital Investment Plan

    ２. Outlook for FY2022 (Ending March 31, 2023) Capital Investment Plan ◼ Expand production capacity to meet growing demand for automotive electronics and mobile communications applications ◼ Increase investment in R&D for photolithography processing (Billion yen) 4.0 3.7 3.5 0.4 System investment, et

  14. Slide 14: Contents

    ＜Contents＞ １．Results for FY2021 (Ended March 31, 2022) ２．Outlook for FY2022 (Ending March 31, 2023) ３．Medium-Term Management Plan (FY2022ーFY2024) (1) Summary (2) Business Strategies – As of March 10, 2022 – Copyright © 2022 Nihon Dempa Kogyo All Rights Reserved 14

  15. Slide 15: Positioning and Aims of the Medium-Term Management

    ３. Medium-Term Management Plan (FY2022ーFY2024) (1) Summary Positioning and Aims of the Medium-Term Management ◼ The Medium-Term Management Plan clarifies our shift from structural reforms to a growth phase ◼ Long-Term Management Strategy—Vision 2030 looks ahead to the year 2030 and clarifies the dir

  16. Slide 16: Management Objectives of the Medium-Term Management Plan

    ３. Medium-Term Management Plan (FY2022ーFY2024) (1) Summary Management Objectives of the Medium-Term Management Plan ◼ Increase sales centering on automotive electronics and mobile communications applications ◼ Boost profitability by increasing sales of compact high -frequency crystal devices in line

  17. Slide 17: Investment Strategy

    ３. Medium-Term Management Plan (FY2022ーFY2024) (1) Summary Investment Strategy ◼ Plan a capital investment of ¥11.5 billion over 3 years accompanying the transition to a growth phase Medium-term management Last 3 years plan (FY19-21) (FY22-24) Priority on improving Growth investment financial positi

  18. Slide 18: Financial Strategy

    ３. Medium-Term Management Plan (FY2022ーFY2024) (1) Summary Financial Strategy ◼Raised roughly ¥4 billion Shareholders’ equity ratio through public offering Increase ◼Redeemed of all Class A End of FY21 End of FY24 shareholders’ shares equity ◼Steady accumulation of profit 32.7% 40.0% through increas

  19. Slide 19: Contents

    ＜Contents＞ １．Results for FY2021 (Ended March 31, 2022) ２．Outlook for FY2022 (Ending March 31, 2023) ３．Medium-Term Management Plan (FY2022ーFY2024) (1) Summary (2) Business Strategies – As of March 10, 2022 – Copyright © 2022 Nihon Dempa Kogyo All Rights Reserved 19

  20. Slide 20: Business Summary and Strategy

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Business Summary and Strategy ◼ Plan to increase sales mainly for automotive electronics and mobile communications to ¥58.0 billion in FY2024 Environmental awareness Growth Directions Medium-term sales target • Recovery in number o

  21. Slide 21: Business Overview and Strategy: Priority Focus Fields

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Business Overview and Strategy: Priority Focus Fields ◼ Focus on automotive electronics and 5G-related areas Automotive electronics 5G ◼ Supplying products for automotive applications since ◼ Began development of photolithography b

  22. Slide 22: Automotive Electronics

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Automotive Electronics NDK’s uncompromising approach to high quality required to automotive product NDK receives steady trust from tier 1 customers 10 years or more maintaining 50%+ market share ◼ NDK's comprehensive support capabi

  23. Slide 23: Automotive Electronics (Market Environment (1))

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Automotive Electronics (Market Environment (1)) ◼ Market potential for crystal products is expected to increase due to an increase in the number of completed vehicles and the number of crystal units installed Crystal Product Potent

  24. Slide 24: Automotive Electronics (Market Environment (2))

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Automotive Electronics (Market Environment (2)) ◼ The growth of ADAS installed into automotives will raise the crystal device demands ◼ The trend of standardization and mandatory of ADAS installation is expected to accelerate accor

  25. Slide 25: Our Business Domain in 5G

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Our Business Domain in 5G ◼ 5G has two main markets: the devices market and the network market, and NDK can approach both markets ◼ The 5G market is expected to have high growth potential and a wide range of business opportunities

  26. Slide 26: Mobile Communications (NDK's Strength: Photolithography Processing Technology (1))

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Mobile Communications (NDK‘s Strength: Photolithography Processing Technology (1)) ◼ With the advent of the 5G era, the need for compact, high-frequency crystal devices will increase, and the advantages of photolithographic process

  27. Slide 27: Mobile Communications (NDK's Strength: Photolithography Processing Technology (2))

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Mobile Communications (NDK‘s Strength: Photolithography Processing Technology (2)) ◼ The technological know-how we have accumulated over many years has become the cornerstone of our integrated production of high-quality, high-perfo

  28. Slide 28: Mobile Communications (Market Environment)

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Mobile Communications (Market Environment) ◼ Shift to the 76.8MHz band is proceeding along with the growth in demand for 5G smartphones. ◼ Company expands sales of ultra-compact crystal units (including 76.8MHz products) with photo

  29. Slide 29: Industrial Equipment: Base Stations (NDK's Strengths)

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Industrial Equipment: Base Stations (NDK’s Strengths) ◼ NDK is the sole Japanese mass producer of OCXO for 5G base station 【5G Network system 】 *1 Base station at 5G network system, which connects devices to networks, is composed o

  30. Slide 30: Industrial Equipment: Base Stations (Market Environment)

    ３. Medium-Term Management Plan (FY2022ーFY2024) (2) Business Strategy Industrial Equipment: Base Stations (Market Environment) ◼ 5G base stations are expected to need a large number of small wireless base stations called radio units (RU) ◼ NDK will aim to expand sales of compact OCXO Base Station Mar

  31. Slide 31: Final Comments

    Final Comments ◼ The New Medium-Term Management Plan has started one year ahead of schedule. Aiming for continuous growth by solidifying current business and taking medium- to- long-term initiatives. Current Global location financial crisis A giant leap Slump in business Automotive electronics growt

  32. Slide 32: Thank you everyone for your time

    Thank you everyone for your time For IR inquiries: Corporate Planning Group, Nihon Dempa Kogyo Co., Ltd. Mail: irmaster@ndk.com Copyright © 2022 Nihon Dempa Kogyo All Rights Reserved 32

  33. Slide 33: Sales by Application (Half Year)

    Appendix Sales by Application (Half Year) FY2021 Result FY2022 Forecast (Billion yen) 1H 2H Total 1H 2H Total Automotive electronics 11.2 11.3 22.5 12.5 13.3 25.8 Industrial equipment 1.8 1.7 3.6 1.9 1.9 3.8 Mobile communications 4.2 4.6 8.8 4.4 5.0 9.4 IoT 0.8 0.9 1.7 0.9 1.1 2.0 Consumer 2.2 2.1 4

  34. Slide 34: Special IR Page on NDK Crystal Devices

    Appendix Special IR Page on NDK Crystal Devices https://www.ndk.com/en/ad/2021/index.html Copyright © 2022 Nihon Dempa Kogyo All Rights Reserved 34

  35. Slide 35: Copyright © 2022 Nihon Dempa Kogyo All Rights Reserved

    Copyright © 2022 Nihon Dempa Kogyo All Rights Reserved

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