Nitto Seiko Co., Ltd. · TSE:5957
Nitto Seiko — FY2022 Earnings Presentation
46 slides from Nitto Seiko's earnings presentation, February 2023
Slide 1: Results Briefing for the 117th Business Period ending December 31, 2022
（Issue code: Tokyo Stock Exchange Prime 5957） Results Briefing for the 117th Business Period ending December 31, 2022 March 2022: March 2022: Selected as a Selected as a Health Management Nadeshiko Brand for the Brand for the second first time. consecutive year. 1
Slide 2: Contents
Contents １．Summary of Business Results for the 117th Fiscal Year Ending Dec 2022 ２．Forecast for the 118th Fiscal Year Ending Dec 2023 ３．New Mid-term Management Plan ４．Improve Engagement ５．Initiatives for Sales Expansion 6．Efforts by Segment 7．Management Approach ■ Explained by Masami Zaiki, Presiden
Slide 3: Summary of Business Results for the 117th Fiscal Year
１．Summary of Business Results for the 117th Fiscal Year Ending Dec 2022 3
Slide 4: Financial Highlights 117th Fiscal Year Ending Dec 2022 (Consolidated)
Financial Highlights117th Fiscal Year Ending Dec 2022 (Consolidated) Year ending Dec 2022 Year ending Dec. Year ending Dec YoY comparison Compared to forecast 2021 2022 Unit: Million yen / % (as of Nov. 11, 2022) Ratio Ratio Amount % Forecast Amount % Amount Amount amount (%) (%) change Change chang
Slide 5: Net Sales and Operating Income by Segment (Consolidated)
Net Sales and Operating Income by Segment (Consolidated) Year ending Dec Year ending Dec YoY comparison (Unit: Million yen / %) 2021 2022 Amount change % Change Net sales 27,896 32,199 4,302 15.4 Operating Fastener income 1,545 1,648 103 6.7 Profit ratio 5.5 5.1 Net sales 7,182 6,515 △666 △9.3 Opera
Slide 6: Overview of results by segment - Fastener Division
Overview of results by segment - Fastener Division Year Year ending ending ◆Automobile YOY comparison Dec Dec ・In EV-related products, demand for key Unit: Mil yen/ % 2021 2022 products such as GIZA TITE and CP GRIP % Amount Amount Amount increased, and sales of ALUMITITE and Change gear parts were
Slide 7: Overview of results by segment – Assembly Machine Division
Overview of results by segment – Assembly Machine Division Year Year ending ending ◆Automobile YOY comparison Dec Dec ・Although inquiries for CASE- and EV-related Unit: Mil yen/ % 2021 2022 screw tightening equipment remained strong, % investment was weak due to modest capital Amount Amount Amount C
Slide 8: Overview of Results by Segment – Control System Division
Overview of Results by Segment – Control System Division Year Year ◆Chemical and pharmaceuticals ending ending YOY comparison ・Although there is demand for analytical Unit: Mil yen/ % Dec 2021 Dec 2022 instruments and flowmeters, sales remain sluggish due to the shortage of semiconductors. Amount Am
Slide 9: Overview of Results by Segment – Medical Division
Overview of Results by Segment – Medical Division Year Year ◆Medical ending ending YOY comparison ・Although there were inquiries about Unit: Mil yen/ % Dec 2021 Dec 2022 "FREELED," the adoption of the product did % not materialize. The Company made cost Amount Amount Amount reductions and other impr
Slide 10: Summary of Overseas Business Results (Q4 of FY 2022)
Approximately 29.4 % of consolidated sales are overseas Summary of Overseas Business Results (Q4 of FY 2022) Net sales Compared Area ratio by Country Notes to Q4FY21 area Demand for screw products for game machines increased China 135％ significantly. In addition, demand for electrical/electronic par
Slide 11: Balance Sheet 117th Fiscal Year Ending Dec 2022 (Consolidated)
Balance Sheet 117th Fiscal Year Ending Dec 2022 (Consolidated) Year ending Dec 2021 Year ending Dec 2022 YoY comparison Unit: Mil yen/ % Amount Ratio Amount Ratio Amount Ratio Assets Total current assets 32,646 64.1 34,342 64.3 1,696 5.2 Cash and deposits 11,415 22.4 9,098 17.0 △2,316 △20.3 Notes, a
Slide 12: Cash Flow Statement for the Fiscal Year Ending Dec 2022 (Consolidated)
Cash Flow Statement for the Fiscal Year Ending Dec 2022 (Consolidated) Year Endling Dec Year Ending Dec 2022 Unit: Mil yen 2021 Amount Amount Amount change % Change CF from operating activities ※① 3,650 999 △2,650 △72.6 CF from investing activities ※② △993 △1,987 △993 － （Free CF） ※①＋② 2,657 △987 △3,
Slide 13: Comparison with Medium-Term Management Plan (Consolidated)
Comparison with Medium-Term Management Plan (Consolidated) NITTOSEIKO Mission “G” NITTOSEIKO Mission “G” Compared to plan Final plans for the year Final Result of Fiscal Year 単位：百万円／％ Amount Amount Ratio (%) Amount Ratio (%) % Change change Net sales 55,000 100.0 44,021 100.0 △10,979 △20.0 Operating
Slide 14: Forecast for the 118th Fiscal Year Ending Dec 2023
２．Forecast for the 118th Fiscal Year Ending Dec 2023 The forecasts contained in this document are based on information currently available to the Company and certain assumptions that the Company considers reasonable and may differ from actual results due to various factors in the future.
Slide 15: Forecast for Fiscal Year Ending Dec 2023 (Consolidated)
Forecast for Fiscal Year Ending Dec 2023 (Consolidated) Year ending Dec 2023 Year ending Dec. 2022 YoY comparison (Forecast) Unit: Million yen / % Amount Amount Ratio (%) Amount Ratio (%) % Change change Net sales 44,021 100.0 46,500 100.0 2,478 5.6 Operating income 2,931 6.7 3,500 7.5 568 19.4 Ordi
Slide 16: Sales and Operating Income Forecast by Segment (Consolidated)
Sales and Operating Income Forecast by Segment (Consolidated) Year ending Year ending YoY comparison Unit: Million yen / % 2022 2023 (Forecast) Amount change % Change Net sales 32,199 34,160 1,960 6.1 Operating Fastener 1,648 2,090 441 26.8 income Profit ratio 5.1 6.1 Net sales 6,515 6,835 319 4.9 A
Slide 17: Investment Results
Investment Results Seed Sowing Management ：NITTOSEIKO Mission “G” Continuous investment averaging 3 billion yen per year over 4 years We will optimize investments based on the new Mid-term Management Plan. Year ending Year ending Year ending Year ending Year ending 2023 unit：Million Yen 2019 2020 20
Slide 18: Shareholder Returns
Shareholder Returns ■Basic policy on profit distribution： Returning profits to shareholders＝Continue to provide stable dividends appropriate to business performance Interim dividend ：９．０yen Year-end dividend：９．０yen 年間 １３．０円 Annual dividend の配当 of 1８.0 yen （yen） NITTO Power-up NITTO Power-up NITTOSEI
Slide 19: New Mid-term Management Plan
３．New Mid-term Management Plan ～Overview of Mission G-second（2023-2025）～ Management Vision To become a ""Manufacturing Solution Group"" that is known and sought after worldwide. Strategy Theme A sustainable group with four growth strategies 19
Slide 20: New Mid-term Management Plan: GROWTH#1 Business Expansion Strategy
New Mid-term Management Plan【Overview】 GROWTH#1 Business Expansion Strategy ➤ Result FY2022（Million Yen） Target FY2025（Million Yen） ➤ 44,021 Net Sales 60,000 ➤ 2,931 Operating Income 5,160 Establish a new business style CASE-related business Fastener Develop existing business Non-Japanese companies
Slide 21: New Mid-term Management Plan: GROWTH#2 Environment Strategy
New Mid-term Management Plan【Overview】 GROWTH#2 Environment Strategy ➤ 12% reduction in 5% reduction in ➤ CO₂ emission in basic unit waste ➤ FY2025 in FY2025 ( vs. 2019) (vs. 2019) CO2 emission By 2030 By 2050 reduction ・Switch to renewable electricity 30% reduction ・Energy conversion of Going withi
Slide 22: New Mid-term Management Plan: GROWTH#3 Human Resource Strategy
New Mid-term Management Plan【Overview】 GROWTH#3 Human Resource Strategy ➤ ➤ 24% increase in labor 3.8 points engagement productivity in FY2025 in FY2025 ➤ ( vs. 2022) (5-point scale) Initiative ＫＰＩManagement Ideal Human ・Education hours and organization ・Education credit system Resource ・Leadership
Slide 23: New Mid-term Management Plan: GROWTH#4 Financial Strategy
New Mid-term Management Plan【Overview】 GROWTH#4 Financial Strategy FY2022 Result Goal for FY2025 ➤ ➤ 5.4％ 8%+ ➤ 5.9％ 9%+ Expand Sales Reduce SG&A ratio ・Develop growing business ・Optimize business PF ・Expand operation area ・Streamline information management Operating ・Expand sales area ・Promote IT a
Slide 24: Improve Engagement
NITTQSETKO 4. Improve Engagement 24
Slide 25: Engagement Certifications and Awards, Regional Development
Improve engagement [ES Improvement] Engagement Certifications and Awards Health & Productivity Management Brand 2022 ＆ FY2021 “Nadeshiko Brand” Nicotto7（Health Management） Double selection!! March 2022（Nittoseko Co., Ltd.） Nicoto7 is a unique in-house Only 9 companies in the nation initiative that
Slide 26: Initiatives for Sales Expansion
５．Initiatives for Sales Expansion ～Sales expansion in Europe & Japan～ 26
Slide 27: Europe Sales Expansion Strategy 1: HANNOVER MESSE 2022
Europe Sales Expansion Strategy １ 【 First appearance at an international exhibition held in Germany 】 HANNOVER Proposed anti-contamination products that are in high demand, especially for MESSE 2022 EV equipment Participation in May 2022 Screw tightening robot CP Grip: Contamination Period May 30～Ju
Slide 28: Europe Sales Expansion Strategy 2: Fastener Fair Global
Europe Sales Expansion Strategy ２ 【Second exhibition in Germany】 Exhibiting at the European exhibition Fastener Fair Global specializing in screw parts! 2023 【Exhibit Plan】 ・ Chip adhesive type screw ‘CP GRIP’ ・Self-tapping screw for plastic‘GIZATITE’ ・Self-tapping screw for aluminum ‘ALUMITITE’ ・ P
Slide 29: Domestic Sales Expansion Strategy: Automotive World
Domestic Sales Expansion Strategy 【Exhibition in Tokyo】 Exhibit in Automotive World Exhibited for the first time in 3 years! Jan 2023 2023 New product release on the first day! Exhibit of fastener product JOISTUD and anti-contamination screw fastening machine Corner for new product display immediate
Slide 30: Sales expansion strategy based on fishery theory
Sales expansion strategy based on fishery theory We are implementing our business expansion strategy with our unique "Fishery Theory" Theme Thought process Points to check Fishing Are there enough fish in the If not, where should they move Where are the fish? ground fishing ground right now? the fis
Slide 31: Efforts by Segment: Fastener Business Initiatives
４．Efforts by Segment ～Fastener Business Initiatives～ 31
Slide 32: Fastener Business: Sales Composition & Strategic Products
Fastener Business 【 Sales Composition & Strategic Products 】 Reduced warping and burring even when installed into thin sheets for Sales composition Launched weight reduction. Self-clinching Stud 3 Series by destination in Jan 2023 (consolidated) Three types for different applications: torque- Year e
Slide 33: Fastener Business [Customer Trends, Outlook]
Fastener Business [Customer Trends, Outlook] ‘Lightweight’ Target Industry Outlook ‘Reduced Automobile Outlook environmental ・Upward trend is expected in recovery from the decline in production caused by the shortage of semiconductors. impact’ ・As companies begin to develop EVs, we expect batteries,
Slide 34: Efforts by Segment: Assembly Machine Business Initiatives
４．Efforts by Segment ～Assembly Machine Business Initiatives～ 34
Slide 35: Assembly Machine Business: Sales Composition & Strategic Products
Assembly Machine Business 【 Sales Composition & Strategic Products 】 Sales composition Collaborative robots are attracting attention due to the recent labor Screw Fastening Tool shortage. Developed a special screw fastening tool that can be for Collaborative by destination Robots mounted on collabor
Slide 36: Assembly Machine Business [Strategic Products]
Assembly Machine Business【Strategic Products】 Lightweight Screw Fastening Unit FM514CZ/VZ New environmentally friendly product ●30% weight reduction vs. Focus on the automobile industry! conventional products Reduces power consumption by downsizing of the robot equipped with this unit⇒ Reduction of
Slide 37: Assembly Machine Business [Customer Trends, Outlook]
Assembly Machine Business [Customer Trends, Outlook] ‘Human Target Industry Outlook Collaboration’ Automobile Outlook ‘Energy ・Investment is expected to remain high for production Conversion’ facilities for new vehicle models and EVs and new energy vehicles. ‘Labor Shortage’ ・Focus on business negot
Slide 38: Efforts by Segment: Control System Business Initiatives
４．Efforts by Segment ～Control System Business Initiatives～ 38
Slide 39: Control Business: Sales Composition & Strategic Products
Control Business 【 Sales Composition & Strategic Products 】 Sales composition Low-cost and compact flowmeter Electromagnetic measurement method exclusively for water expands flowmeter product lineup by destination Compact Aqua Meter WE MAGFLOW Launched in (consolidated) We provide inexpensive, compa
Slide 40: Control Business [Strategic Products]
Control Business【Strategic Products】 Targeting new hairdressing Launched & beauty industry in Oct 2022 Development of shower system for hairdressing salons 【Product Features】 ・High density microbubbles ・Showerhead that incorporates advice from professionals ・Can be attached externally to conventiona
Slide 41: Control Business [Customer Trends, Outlook]
Control Business【Customer Trends, Outlook】 Target Industry Outlook ‘Environment’ Chemical/Pharmaceutical 見通し ‘ High-precision ・ Demand for analytical instruments continues to increase both domestically and internationally measurement’ ・ Demand is expected to increase against the ‘Safety’ backdrop of
Slide 42: Efforts by Segment: Medical Business Initiatives
４．Efforts by Segment ～Medical Business Initiatives～ 42
Slide 43: Medical Business [Business Growth Strategy]
Medical Business [Business Growth Strategy] State of progress World's first! Clinical study Development Clinical Trial Application Approval Start sales Medical bio-soluble high purity magnesium Development Status Non-clinical studies with rabbits have begun at a university hospital. Research pre
Slide 44: Management Approach
NITTQSETKO 5, Management Apporoach 44
Slide 45: Management Approach
Management Approach We strive for 120% satisfaction in response to customer 1 requests. The purpose of management is the pursuit of wellbeing, 2 where everyone is happy. We aim to realize a sustainable society and company, 3 based on our founding spirit of contributing to society in the public inter
Slide 46: Forecasts of future performance contained in this document
Forecasts of future performance contained in this document are based on information currently available to the Company and certain assumptions that the Company considers reasonable. Actual results may differ from these forecasts due to a variety of factors. Important factors that may affect actual r