Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — Investor Presentation (September 2024)
24 slides from Nissha Co.ltd's investor presentation, Sep 9, 2024
Slide 1: Medical Technologies Small Meeting
Medical Technologies Small Meeting September 9, 2024
Slide 2: Agenda
Agenda ⚫Overview of our business, target markets, and mid-to-long term strategy ⚫Overview of our medical device CDMO business ⚫The U.S. medical device CDMO market ©2024 Nissha Group 2
Slide 3: Overview of our business, target markets, and mid-to-long term strategy
Overview of our business, target markets, and mid-to-long term strategy ©2024 Nissha Group 3
Slide 4: Our Business (Product)/Market Portfolio
Our Business (Product)/Market Portfolio Medical Mobility Sustainable Materials IT Devices Market Business (Product) Cash Cow Star Industrial Metallized paper Injection molded Decoration/Functional parts parts Problem Child - Materials Sustainable molded (Interior/Exterior) products Sensing technolog
Slide 5: Net Sales Trend by Business
Net Sales Trend by Business ⚫ Net sales of the Medical Technologies is expected to reach JPY45,000 million. 250,000 ■Medical Technologies ■Industrial Materials ■Devices ■Others (Millions of JPY) 196,600 200,000 189,285 193,963 180,006 167,726 150,000 100,000 50,000 36,011 45,000 24,176 32,457 20,568
Slide 6: Growth Potential: Business portfolio of the 8th Medium-term Business Plan
Business portfolio of the 8th Medium-term Business Plan ⚫ Well-balanced positioning to achieve improved profit margin high Star Medical Pharmaceuticals Problem Child ⚫ Focus resources on the 3 priority markets Devices CDMO Net Profita- Invest- Sustainable Materials Business Market (Sustainable molde
Slide 7: Sustainability Vision (Announced in February, 2021)
Sustainability Vision (Announced in February, 2021) With the integration and orchestration of the diverse talents of our people and our technologies, we will contribute to solving global social issues in the priority markets of Medical, Mobility, and Sustainable Materials, and realize the enrichment
Slide 8: Overview of our medical device CDMO business
Overview of our medical device CDMO business ©2024 Nissha Group 8
Slide 9: Nissha Medical Technologies: Products and Services
Nissha Medical Technologies: Products and Services Business Media Medical Device Medical Device CDMO Business Media CDMO *1 Own Brand 26% 2023 Sales 53% 36,011 Millions of JPY 21% Own Brand *1 CDMO：Contract Design/Development and Manufacturing Organization Note: Image is an illustration purpose. ©20
Slide 10: Medical Device CDMO: Our Roles
Medical Device CDMO: Our Roles One-stop service provider, from design to manufacturing Medical Device OEM（Global top） Develop- Verifica- Manufac- Distributi- Marketing Design ment tion turing on / Sales Product concepts Outsource Products Develop- Verifica- Manufac- Design ment tion turing Medical d
Slide 11: Medical Device CDMO: Our Specialization (Single-use)
Medical Device CDMO: Our Specialization (Single-use) Surgical Devices Clinical Products Medical Wearable sensors 60% Grounding Pads Defibrillator Electrodes Minimally Invasive Surgical Devices Endoscopes, Laparoscopes, Biopsy Devices, Ablation Catheters, Surgical Robots, and Surgical Navigation Syst
Slide 12: Seizing Market Needs, Targeting New Frontiers
Seizing Market Needs, Targeting New Frontiers Existing Segment Emerging segment Needs on cutting-edge Visualization + Navigation Moduled products for robotics assisted surgery Acquisition of Enabling Technologies, through M&A, partnership, and R&D across business units End Effectors Minimally Invasi
Slide 13: Footprint in USA, a medically advanced country
Footprint in USA, a medically advanced country ⚫ Adjacent to and jointly developing with American medical device OEMs Norwalk, OH New Richmond, WI Design & Development Micro Molding Metal Processing Surgical Devices Surgical Devices Buffalo, NY Headquarters Sandpoint, ID Automation Design Wolcott, C
Slide 14: Strategic partnership with global medical device OEMs
Strategic partnership with global medical device OEMs 「 」の 画像検索結果 stryker Strong track record with 8 of 10 top OEMs The OEM trademarks shown here belong to their respective OEMs and do not belong to the Company or its affiliates. We do not guarantee the relationship or relationship between the produ
Slide 15: The U.S. Medical Device CDMO Market
The U.S. Medical Device CDMO Market ©2024 Nissha Group 15
Slide 16: Megatrends in the U.S. Medical Device OEM Outsourcing
Megatrends in the U.S. Medical Device OEM Outsourcing OEM ⚫ Primarily outsourced component supply Timeline ⚫ Capital investments/assets needed for internal manufacturing Prior to 2010 ⚫ Outsourcing shift to full cycle CDMOs 2010 – ⚫ Capital and assets diverted towards core IP, increased innovation 2
Slide 17: High Growth in US Medical Device CDMO Market
High Growth in US Medical Device CDMO Market Global Medical Device Market *1 US Medical Device CDMO Market *2 Nissha Medical Technologies CDMO (US$ bn) (US$ bn) (JPY bn) 569 26.3 19.1 521 542 21.3 23.3 16.3 439 447 17.9 18.5 11.8 11.9 9.2 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2
Slide 18: Expanding CDMO Capabilities through M&A
Expanding CDMO Capabilities through M&A ⚫ From component manufacturing to finished product manufacturing ⚫ Vertical integration through Design/Development to Manufacturing ⚫ Acquisition of capabilities required in new areas Micro Molding Steerability Minimally Minimally invasive surgical invasive su
Slide 19: CDMO Competitive Positioning
CDMO Competitive Positioning Small Highly Broad Capabilities, Specialized Specialization Mid Tier Specialization Top Tier Vertical Integration Level of End-to-End Integration Players $75M - $300M $300M - $1B $1B+ <$75M ⚫ Limited geographic reach ⚫ Increased geographic reach ⚫ Worldwide reach ⚫ Lack
Slide 20: Securing Our Growth
Securing Our Growth ⚫ Increasing opportunities in accordance with our enhanced CDMO capabilities and the market trend ⚫ Numerous programs in our pipeline to release to manufacturing is enabling growth for the mid-term Programs in the Pipeline (as of Aug 2024) Sales Contribution by Programs in the Pi
Slide 21: Converging Technology is Driving Innovation
Converging Technology is Driving Innovation Healthcare Pathway Our Long Term Focus ⚫ Diagnosis Digital Surgery/Smart Device ⚫ Treatment ⚫ Post procedure ⚫ Robotic platforms Uniquely positioned for ⚫ Chronic care ⚫ Visualization high growth segments ⚫ Navigation ⚫ Navigation technologies Targeted Hea
Slide 22: Our Converging Technologies Focus
Our Converging Technologies Focus ⚫ Surgical Visualization Miniaturized ⚫ Steerability of Endoscopic Tools Steering Constructs ⚫ Micro Molding/Micro Assembly ⚫ Precision Machining CMOS Advanced Integration Electronics ⚫ Sensing ⚫ Custom Engineered Solutions Surgical Precision Visualization Machining
Slide 23: Nissha's Unique Position
Nissha’s Unique Position ⚫ Customer track records ⚫ Top OEM exposure: 8 of top 10 ⚫ Preferred vendor status with 3 OEMs ⚫ Continue shift to the targeted specialization top tier ⚫ Inorganic growth in Smart Device and RAS market ⚫ CDMO capabilities combine existing core capabilities with new focus ●St
Slide 24: Forward-looking information disclaimer
Among the information included in this presentation and provided at investor briefings and conferences, performance targets, plans, outlooks, strategies and other information that is not constituted of actual past facts, is information that has been judged reasonable by the managers of the Company b