Shinko Shoji Co., Ltd. · TSE:8141
Shinko Shoji — H1 FY2021 Earnings Presentation
38 slides from Shinko Shoji's earnings presentation, Nov 9, 2020
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2021
Financial Results for the First Half of the Fiscal Year Ending March 31, 2021 ■ Financial Results ■ Future measures ■ Full-year outlook NOVEMBER 9,2020 Tatsuya Ogawa, President and Representative Director
Slide 2: Disclaimer
Disclaimer This English translation is only for reference purpose. When they are any discrepancies between original Japanese version and English translation version, the original Japanese version always prevails. 1
Slide 3: Notes on handling materials
Notes on handling materials Our forward-looking statements in this presentation are based on information that is available at the moment. These forward-looking statements are based on management's assumptions and beliefs in light of the risks and uncertainties that may cause actual results to differ
Slide 4: Overview of First Half Settlement
Overview of First Half Settlement 3
Slide 5: Highlights of First Half Fiscal Year March/2021 Results
Overview of First Half Highlights of First Half Fiscal Year March /2021 Results Sales for our main business fields, including industrial equipment market, automotive electronics market and amusement machine market, have decreased compared with the same period of the previous year due to the downturn
Slide 6: Overview of First Half Settlement
Overview of First Half Overview of First Half Settlement （Unit; Million yen） 1H 1H 1H Increase / decrease Increase / decrease FYE March/2020 FYE March/2021 FYE March/20201 (Previous year (Initial forecast Results Initial Forecast Results comparison) ratio) Net sales 51,060 44,000 43,924 △7,136 △76 G
Slide 7: Sales composition by field
Overview of First Half Sales composition by field 1H FY/2020 1H FY/2021 Communication Consumer 2.1% Consumer Consumer 2.5% 2.1% 2.3% Amusement Amusement 11.０% 1211 10.０% 11 9 56 Industry 44 Industry 37.2% 40.4% ＯＡ ＯＡ 190 10.5% 46 10.０% 51 177 51,060 43,924 million yen million yen Automotive Automoti
Slide 8: Sales composition by field (amount)
Overview of First Half Sales composition by field (amount) （Unit;100 Million yen） 1H FY/2020 1H FY/2021 200 100 0 7
Slide 9: Trend of Net sales
Overview of First Half Trend of Net sales （Unit; Million yen） 1H Full fiscal year 160,000 127,926 112,458 116,405 120,000 101,627 90,000 80,000 67,971 59,131 51,946 51,060 43,924 40,000 0 FY/2017 FY/2018 FY/2019 FY/2020 FY/2021 （Prospect） 8
Slide 10: Analysis on factor of increase in sales compared with the previous year
Overview of First Half Analysis on factor of increase in sales Compared with the previous year （Unit; Million yen） 520 511 Assembly 510 ▲2３ 500 Other Electronic 490 Devices ▲９ semiconductor 480 device ▲6 470 Circuit LCD Other Devices ▲５ business 460 ▲15 ▲2 450 Integrated Circuit 439 440 ▲12 430 420
Slide 11: Gross profit / Gross profit ratio
Gross profit / Gross profit ratio Overview of First Half 【1H Results】 （Unit; Million yen） （％） Gross profit Gross profit ratio 10,000 9.5 9.3 10.0 8.7 8.8 8.8 8.6 7.9 8,000 8.0 6,264 5,980 6,000 6.0 5,050 5,209 4,870 4,531 4,087 4,000 4.0 2,000 2.0 0 0.0 FY/2014 FY/2015 FY/2016 FY/2017 FY/2018 FY/201
Slide 12: Operating income / Operating income ratio
Overview of First Half Operating income / Operating income ratio 【1H Results】 （Unit; Million yen） （％） Operating incom Operating incom ratio 5,000 4.0 3.4 4,000 3.0 3.0 3,000 2,494 2.0 1.8 2.0 1.7 2,038 2,000 1.4 1,207 1,187 1.0 1,000 865 0.7 721 305 0 0.0 FY/2014 FY/2015 FY/2016 FY/2017 FY/2018 FY/2
Slide 13: Consolidated Statements of Income
Overview of First Half Consolidated Statements of Income （Unit; Million yen） 1H/2019 1H/2020 (April 1,2019～September 30,2019） (April 1,2020～September 30,2020） NET GROSS NET SALES PROFIT GROSS SALES PROFIT 51,060 4,870 43,924 4,087 OPERATING ORDINARY NET ORDINARY INCOME OPERATING NET INCOME INCOME IN
Slide 14: Consolidated Balance Sheet
Overview of First Half Consolidated Balance Sheet （Unit; Million yen） Total assets Total liabilities and net assets (March 31,2020) （September 30,2020） (March 31,2020) （September 30,2020） 71,993 71,993 69,298 69,298 Current Fixed Liabilities Current Fixed Current Liabilities Liabilities Liabilities
Slide 15: Cash Flows
Cash Flows Overview of First Half Consolidated Statements of Cash Flows （Unit; Million yen） 1H/2020(April 1,2020～September 30,2020） Cash flow from operating Effect of exchange Cash flow from Cash and cash activities investing Cash flow from rate change on equivalents at the end of period △3,857 acti
Slide 16: Cancellation of treasury stock
Overview of First Half Cancellation of treasury stock １．Type of shares to be cancelled Shares of common stock ２．Number of shares to be cancelled ２，２００，０００ shares (4.43% of the total issued shares before cancellation) ３. Date of Cancellation August 7,2020 ４. Total number of issued shares after the ca
Slide 17: Future measures
Future measures 16 E\Shinko ShojiCo.Ltd.
Slide 18: Our business domains
Future measures Our business domains For our customers' success, Shinko Shoji not only offers products and optimal logistics proposals, but also offers business solutions tailored to their needs, such as technical support, development coordination, EMS business, and overseas expansion. 【Device solut
Slide 19: Future measures
Future measures Future measures １．Renesas Electronics Business ２．Overseas business ３．Core market trends ４．Future actions 18
Slide 20: 1-1. Business for Renesas Electronics
Future measures 1-1. Business for Renesas Electronics 【Sales trend of Renesas products】 （100 Million Yen) 1H Full fiscal year 600 532 549 479 464 397 400 258 268 250 207 198 200 0 FY/2017 FY/2018 FY/2019 FY/2020 FY/2021 （Prospect） 19
Slide 21: 1-2. Business for Renesas Electronics
Future measures 1-2. Business for Renesas Electronics 【Sales comparison of Division】 1H FY/2020 1H FY/2021 Amusement Amusement Communication 2.2% Consumer Consumer 3.5% 1.9% 0.5% Communication 1.3% 1.9% OA 44 473 Automotive Automotive 21.0% OA 53.4% 48.0% 16.7% 43 33 110 207 198 95 43 57 Industry In
Slide 22: 2-1. Overseas business
Future measures 2-1. Overseas business 【Sales of Overseas Subsidiaries】 The end of September 2020 （100 Million Yen） 112.68 112.19 112.73 110.99 109.56 105.80 ← US$Rate 500 463 459 450 402 400 380 344 350 332 300 250 182 1H Results 200 150 150 100 150 50 0 FY/2016 FY/2017 FY/2018 FY/2019 FY/2020 FY/2
Slide 23: 3-1. Core Market Sales Trends
Future measures 3-1. Core Market Sales Trends Industry Automotive Amusement （100 Million Yen） 500 455 430 427 410 400 366 366 353 302 300 190 200 173 140 90 100 0 FY/2018 FY/2019 FY/2020 FY/2021 （Prospect） 22
Slide 24: 3-7. Industrial Equipment Business Sales Trends
Future measures 3-7. Industrial Equipment Business Sales Trends （100 Million Yen） 500 455 410 366 400 353 300 200 100 1H Result 177 0 FY/2018 FY/2019 FY/2020 FY/2021 (Prospect) ※Customers in the industrial sector Machine tools, Semiconductor manufacturing equipment,Medical equipment, Smart meters, e
Slide 25: 3-3. Automotive Equipment Business Sales Trends
Future measures 3-3. Automotive Equipment Business Sales Trends （100 Million Yen） Domestic Overseas 500 450 430 427 400 366 350 223 225 302 300 250 207 200 198 150 100 207 202 159 50 104 0 FY/2018 FY/2019 FY/2020 FY/2021 （Prospect） 24
Slide 26: 3-4. Amusement Equipment Business Sales Trends
Future measures 3-4. Amusement Equipment Business Sales Trends （100 Million Yen） 200 190 180 173 160 140 140 120 100 90 80 60 40 20 1H Result 44 0 FY/2018 FY/2019 FY/2020 FY/2021 (Prospect) 25
Slide 27: 4-1. IoT Solution that realizes Society 5.0
4-1.“IoT Solution” that realizes Society 5.0 Air quality control that is required in industrial/ food/ environmental/ agricultural fields ✓ To develop the market with our Sensing Kit that makes invisible gas visible ✓ Developed air quality Sensing Kit that utilizes Renesas Electronics GAS Sensor Air
Slide 28: 4-2. Business proposal that contributes to society (wireless solution)
Future measures 4-2.Business proposal that contributes to society (Provision of wireless solution) ~ Progress of commissioned research by National Institute of Information and Communications Technology (NICT) , JAPAN ~ ✓ To provide Shelter Monitoring System that can promptly grasp the status of shel
Slide 29: 4-3. Non-contact technology that can be retrofitted
Future measures 4-3.Non-contact technology that can be retrofitted "No-touch frame / No-touch frame W" Prevents infection by making the existing touch panel non-contact in the air ◆Supports a wide range of sizes up to 60inch ◆Achieves high operability with patent-pending technology Company Use Ｗ VEN
Slide 30: 4-4. Inspection of social infrastructure and cultural assets (moogle evo)
Future measures 4-4.Inspection of social infrastructure and cultural assets (moogle evo) Visualization of “hard-to-see places” <case> ◆It can be operated remotely ◆Providing “visible peace of mind” to our customers Company Case Progress I Bridge Carry out O Bridge Carry out The Japan Termite Control
Slide 31: 4-5. Photocatalyst sterilizer / deodorizer
Future measures 4-5.Photocatalyst sterilizer / deodorizer that protects "living", "society", and "environment" Protect your life, workplace and social environment with high performance ◆Achieves sterilization and deodorization with Caltech's photocatalytic technology ◆Contribution to new normal soci
Slide 32: 4-6. Remote work utilized for sales promotion & technical support
Activities amid the Covid-19 pandemic 4-6.Remote work utilized effectively for Sales promotion & Technical support To demonstrate higher performance by developing online demo seminars to promote remote work for sales expansion and extending our presence to customers Creative sales promotion activiti
Slide 33: Outlook for the Fiscal Year Ending March 31, 2021
Outlook for the Fiscal Year Ending March 31, 2020 32
Slide 34: Full fiscal year Forecast
Full fiscal year Forecast Outlook for the FYE March 31, 2021 （Unit; Million yen） FYE March FYE March Comparison Increase / 31,2020 31,2021 with the decrease Results Forecast previous amount term Net sales 101,627 90,000 89% △11,627 Operating 1,611 600 37% △1,011 income Ordinary 1,771 600 34% △1,171
Slide 35: Full-year Forecast (Quarterly Sales)
Outlook for the FYE March 31, 2021 Full-year Forecast (Quarterly Sales) （100 Million Yen） 1H 2H 800 680 700 600 591 573 600 511 506 500 439 461 400 300 200 100 0 FY 2018 FY 2019 FY 2020 FY 2021（2H：Prospect） 34
Slide 36: Our dividend policy
Outlook for the FYE March 31, 2021 Our dividend policy Total shareholder return ratio is 100% during the 3-year period from fiscal year March 2020 to fiscal year March 2022, based on total shareholder return, which includes dividends and share buybacks. ＊Total return ratio = (Dividend amount + Acqui
Slide 37: Shareholder Returns
Outlook for the FYE March 31, 2021 Shareholder Returns ●Dividend per share Dividend per share Total return ratio End of 1H Year end Annual FY March/2021 Forecast 272.9% ￥14 ￥14 ￥28 （Published May 15, 2021） （prediction） Results for the previous fiscal year (Year ended March 31, 2020) ￥27 ￥14 ー 210.6%
Slide 38: Contact Information
Contact Information Shinko Shoji Co., Ltd. Director Shuji Isshiki Tel: (81)-3-6361-8062 Fax: (81)-3-5437-8481 e-mail: shuji.isshiki@st.shinko-sj.co.jp Head Office: Art Village Osaki Central Tower 13F 1-2-2 Osaki Shinagawa-ku Tokyo 141-8540 Japan HP: http://www. shinko-sj.co.jp 37