Slide 1: Results Briefing for the Fiscal Year Ended March 31, 2023
Securities ID code:6859 ESPEC CORP. Results Briefing for the Fiscal Year Ended March 31, 2023 May 24, 2023 Satoshi Arata Representative Director and President
Slide 2: Financial Result for the Fiscal Year Ended March 31, 2023
Financial Result for the Fiscal Year Ended March 31, 2023 Although parts procurement difficulties and surging component prices continued, the electronics and automobile markets remained favorable. Orders received and net sales reached record highs, while profits also increased substantially. Compari
Slide 3: Summary of Profits and Losses
Summary of Profits and Losses (Millions of yen) FY2022 Comparison with FY 2021 FY2022 Revised Forecasts Year on Year Results Results Forecasts (Oct. 2022) Orders Received 51,303 59,000 59,521 +16.0% +0.9% Net Sales 41,852 52,000 52,892 +26.4% +1.7% Cost of Net Sales +25.4% +2.2% 27,849 34,200 34,935
Slide 4: Performance by Segment
Performance by Segment (Millions of yen) FY2022 Comparison with FY 2021 FY2022 Revised Forecasts Year on Year Results Results Forecasts (Oct. 2022) Orders Received 43,535 51,000 51,446 +18.2% +0.9% Equipment Business Net Sales 34,518 44,400 45,031 +30.5% +1.4% Operating Profit 1,370 3,760 3,919 +186
Slide 5: Orders Received in FY2022
Orders Received in FY2022 ■ Orders-received were strong, as the electronics and automobile markets performed better than anticipated Reached record highs for two consecutive fiscal years Orders Received (Millions of yen) 70,000 59,521 60,000 ・Advance orders (Reference) 50,698 48,008 51,303 previousl
Slide 6: Net Sales in FY2022
Net Sales in FY2022 ■ Net sales rose substantially, reaching a record high, as all types of measures were implemented to secure production volume, despite the impact of parts procurement difficulties and the lockdowns in Shanghai in 1Q. Net Sales (Millions of yen) 70,000 60,000 (Reference) 52,892 ・T
Slide 7: Analysis of Operating Profit Increase and Decrease Factors (YoY)
Analysis of Operating Profit Increase and Decrease Factors (YoY) ■Operating profit increased substantially, mainly due to an increase in net sales in the Equipment Business, despite the impact of surging components prices and an increase in SG&A expenses. Equipment Business (Millions of yen) 516 -15
Slide 8: Statement of Assets and Liabilities
67,176 7 End of FY2022 (Millions of yen) 1,580 Net assets Liabilities and Net assets -66 Noncurrent liabilities 1,421 +5,254 Other current liabilities 1,327 Electronically recorded obligations End of FY2022 End of FY2021 Notes and accounts 990 payable-trade 61,922 Statement of Assets and Liabilities
Slide 9: Statements of Cash Flows
8 -1,859 (Millions of yen) Increase (decrease) in funds 183 Effect of exchange rate changes -2,898 Total financial cash flow -119 Other -1,294 Purchase of treasury shares -1,484 Dividends paid -1,0611 Total investment cash flow Other 16 Proceeds from sale and redemption 107 of investment securities
Slide 10: Equipment Business
Equipment Business (Millions of yen) FY2022 Comparison with FY 2021 FY2022 Revised Forecasts Year on Year Results Results Forecasts (Oct. 2022) Orders Received 43,535 51,000 51,446 +18.2% +0.9% Net Sales 34,518 44,400 45,031 +30.5% +1.4% Operating Profit 1,370 3,760 3,919 Profit Ratio(%) +186.0% +4.
Slide 11: Service Business
Service Business (Millions of yen) FY2022 Comparison with FY 2021 FY2022 Revised Forecasts Year on Year Results Results Forecasts (Oct. 2022) Orders Received 6,771 6,720 6,963 +2.8% +3.6% Net Sales 6,407 6,470 6,788 +5.9% +4.9% Operating Profit 618 230 428 Profit Ratio(%) -30.8% +86.1% 9.7% 3.6% 6.3
Slide 12: Other Business
Other Business (Millions of yen) FY2022 Comparison with FY 2021 FY2022 Revised Forecasts Year on Year Results Results Forecasts (Oct. 2022) Orders Received 1,265 1,580 1,469 +16.1 -7.0% Net Sales 1,188 1,430 1,404 +18.2 -1.8% Operating Profit -23 10 16 Profit Ratio(%) - +65.4% -2.0% 0.7% 1.2% Enviro
Slide 13: Sales by Market
Sales by Market ■ Growth was led by the IoT-related market (communication terminals, base stations, servers) and the next-generation automobile-related market (electrification, automation), both of which are cutting-edge technology fields. Electronic device and equipment market Non-Consolidated (Equ
Slide 14: Sales by Region
Sales by Region ■ The overseas sales ratio surpassed 50% for the second consecutive fiscal year. By area, the ratios went up in China and Europe & North America. FY 2021 FY2022 Overseas sales ratio: 50.4% Overseas sales ratio: 52.7% Europe & North 15.9% America 18.1% China Taiwan South Korea 21.7% 4
Slide 15: FY2023 Plan
FY2023 Plan ■ Although the business environment will remain uncertain, we expect to maintain a high level of orders received primarily in cutting-edge technology fields. ■ Meanwhile, parts procurement still remains unstable and is projected to normalize from FY2023 2H onward. ■ Against the backdrop
Slide 16: Forecasts for FY2023
Forecasts for FY2023 (Millions of yen) FY2022 FY2023 Forecasts Full Year Results 1H 2H Full Year Year on Year Orders Received 59,521 26,500 27,500 54,000 -9.3% Net Sales 52,892 26,000 30,000 56,000 +5.9% Gross Profit 17,957 8,750 10,250 19,000 +5.8% Profit Ratio (%) 34.0% 33.7% 34.2% 33.9% -0.1pt SG
Slide 17: Assumed exchange rate for FY2023
Assumed exchange rate for FY2023 ■ Assumed exchange rate FY2021 FY2022 FY2023 Full Year 1H Full Year Full Year Results Results Results Assumption U.S. dollars (yen) 112.40 134.04 135.51 130 *Reference: Exchange rate sensitivity for FY2023 (¥1 depreciation against US$1) Net sales: Increase of ¥185 mi
Slide 18: Recognition of the Operating Environment
Recognition of the Operating Environment Although the business environment is uncertain, demand is forecast to continue, mainly in cutting-edge technology fields such as IoT and next-generation automobiles. Japan: Investments related to EVs and automated driving will remain strong, while investment
Slide 19: Main Initiatives in FY2023
Main Initiatives in FY2023 Equipment Business ・Boost earnings power, normalize delivery schedules, and rapidly clear the order backlog ・Strengthen response to the globally expanding battery market Service Business After-sales Service: Expand preventative maintenance services through “super support s
Slide 20: Segment Financial Forecasts
Segment Financial Forecasts (Millions of yen) FY2022 FY2023 Forecasts Full Year 1H 2H Full Year Year on Year Results Orders Received 51,446 22,550 22,950 45,500 -11.6% Equipment Business Net Sales 45,031 22,450 25,250 47,700 +5.9% Operating Profit 3,919 1,870 2,800 4,670 +19.1% Orders Received 6,963
Slide 21: Main Initiatives for ESG in FY2023
Main Initiatives for ESG in FY2023 ■E (Environment) ・Promote the 8th Medium-term Plan on the Environment (FY2022-2025) ・Global warming countermeasure: Change to low-GWP refrigerant Reduce CO2 emissions in business activities such as manufacturing ・Biodiversity conservation activities: Contributions
Slide 22: Investment Plans in FY2023
Investment Plans in FY2023 Strategic investment 1.6 billion yen R&D expenditures 1.49 billion yen Ordinary investment 1.5 billion yen Capital investment 3.1 billion yen Total Main investments Main R&D Activities ・Expansion of laboratory testing ・Develop products for cutting-edge facilities technolog
Slide 23: FY2023 Dividend Forecast
FY2023 Dividend Forecast Basic policy on profit distribution Our basic policy is to determine dividends taking into account sustainability and the dividend payout ratio ・In addition to a dividend payout ratio of 30%, we will add dividends with 1/3 of the excess amount of scheduled necessary funds as
Slide 24: TOPICS
TOPICS 1 [For the first time in Japan] Expanded Lineup of RF Anechoic Box Type Defect Analysis Service for Battery Packs and Thermostatic Chambers Support Temperature Modules Installed in Automobiles Characteristics Testing of 5G Communication Devices ・In November 2022, ESPEC launched a service for
Slide 25: TOPICS
TOPICS 2 Signed an agreement for promoting SDGs Biodiversity conservation activities with the University of Hyogo “ESPEC’s 50-Year Forest” tree-planting festival ・In August 2022, ESPEC signed an agreement with the ・Launched forest creation for “ESPEC’s 50-Year Forest” University of Hyogo aimed at pr
Slide 26: External Recognition
External Recognition ■2023 Mar.・ Selected for the First Time as a Supplier Engagement Leader, the Top Rank in the CDP Supplier Engagement Ratings Feb. ・ Ranked 372th in Toyo Keizai Inc.’s 2023 CSR Corporate Ranking ■2022 Dec.・A score of B for the third consecutive year in the CDP Climate Change 2022
Slide 27: 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
Slide 28: Quality is more than a word
Quality is more than a word ESOEC ESPEC CORP.