Slide 1: PIOLAX, INC. Results Briefing, December 9, 2022
Friday, December 9, 2022 PIOLAX, INC. (Code: 5988) Yukihiko Shimazu, President All Rights Reserved, Copyright © PIOLAX, INC. 1
Slide 2: Contents
Contents I. Progress of Medium-Term Management Plan ‐ 1. Management Indicators ‐ 2. Progress of Management Strategies II. Current Status and Outlook of Medical Device Business ・Seiichi Sato, President of Piolax Medical Devices, INC. All Rights Reserved, Copyright © PIOLAX, INC. 2
Slide 3: All Rights Reserved, Copyright © PIOLAX, INC.
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Slide 4: Management Indicators - 1
Management Indicators - 1 Progress of medium-term management plan (FY22-FY24) Sales Operating profit (100 mil. Mid-term plan Operating JPY) (100 mil. JPY) Revised disclosure profit ratio 800 720 Operating profit ratio 25% 627 683 Revised operating profit ratio 100 605 100 90 551 20% Revision 52 7.1%
Slide 5: Management Indicators - 2: by Segment
Management Indicators - 2: by Segment Medium-term management plan for ・Reason for downward revision: Decrease in automobile production. ・2nd half: Recovery expected due to recovery in customers’ production. Further streamlining. Sales Operating profit Mid-term plan Prospect Operating (100 mil. JPY)
Slide 6: Management Indicators - 2: by Segment
Management Indicators - 2: by Segment Medium-term management plan for ・Compared to the plan, sales will slightly decrease but operating profit will increase. ・Details are explained in the “current status and outlook of medical device business.” Operating Sales (100 mil. JPY) Operating profit profit
Slide 7: Progress of Management Strategy: Automotive - 1
Progress of Management Strategy: Automotive - 1 Management strategy and Medium-term Status in FY22 priority issue management plan 1. Product and customer Accelerate response to CASE e-Products Development Dept. strategy dedicated to CASE set up in April ・Develop CASE parts and receive Non-Japanese O
Slide 8: Progress of Management Strategy: Automotive - 2
Progress of Management Strategy: Automotive - 2 Management strategy and Medium-term Status in FY22 priority issue management plan 4. Growth investment New Moka Plant Full-scale construction started in strategy FY23: Phase 1 construction completed, December ・Develop infrastructure in Japan and operat
Slide 9: Acceleration of Developing CASE Products
Acceleration of Developing CASE Products “e-Products Development Dept. dedicated to CASE set up (April 2022) 【Efforts in FY22】 Power supply Sales expansion target Order wins progress, achieving the target of 1st port actuator half of FY22. The full-year target is expected to be By product ratio achi
Slide 10: Diversification of Customers and Products
Diversification of Customers and Products Targets in FY24 ■Ratio of sales with non-Japanese OEMs: 16% ■Per-car sales for new model: +10% (from FY21) Per-car sales increase for 7 major new models of Japanese OEMs Sales and the ratio by OEM (In Japan, as of 1st half of FY22) (100 bil. JPY) Growth rate
Slide 11: Capital Investment and Depreciation
Capital Investment and Depreciation Capital investment for future leap forward mainly in domestic infrastructure development Capital investment and depreciation 【FY22】 Mid-term plan ・Full-scale start of constructing Total 23.5 bil. JPY new Moka Plant ・Introduction of automated/ Total investment to b
Slide 12: Initiatives in Overseas Sites
Initiatives in Overseas Sites Targets in FY24 ■Sales expansion with local OEMs in North America (U.S. and Mexico) and China Sales ratio among overseas bases: 35% each for North America and China ■Improve earning power of ASEAN and India bases Operating profit ratio 15% Sales ratio of overseas bases
Slide 13: Strategies for Continental Europe
Strategies for Continental Europe German Representative Office Open: February 2022 Place: Dusseldorf, Germany Role: Information gathering and market research in Europe The Representative Office is established as a foothold for Continental Europe strategies. October 2022: exhibited for the first time
Slide 14: Infrastructure Development in Japan - 1
Infrastructure Development in Japan - 1 Infrastructure development for future growth 1. New Moka Plant construction project Construction of phases 1 and 2 <Next-generation plant> Global Mother Plant Start of construction: December 2022 Introduction of next-generation equipment Full-scale operation:
Slide 15: Infrastructure Development in Japan - 2
Infrastructure Development in Japan - 2 2. Yokohama area renewal project Re-plan infrastructure development for the entire Yokohama area (Head Office and Yokohama Technical Center). Due to the aging of the building, the Head Office was relocated in March 2022, and the demolition of the building has
Slide 16: Capital Policy
Capital Policy Review in May 2022 Dividend Previous Revised Capital policy for FY22-FY24 forecast disclosure in Nov. Curtail the buildup of equity capital. End of 2nd 60.00 yen 43.00 yen 100% dividend payout ratio quarter Agile share repurchase/retirement Term end 67.00 yen 54.00 yen Full year 127.0
Slide 17: Promotion of ESG Management - 1
Promotion of ESG Management - 1 Corporate activities aiming for carbon-free and recycling-oriented society （Piolax ESG Vision 2030） Initiatives for climate change Initiatives for renewable energy March 2022 ・Promote solar panels in Japan and ・Endorse TCFD Recommendations. abroad. ・Disclose informati
Slide 18: Promotion of ESG Management - 2
Promotion of ESG Management - 2 Creating a safe and vibrant workplace (Piolax ESG Vision 2030） Enhance human assets development Initiatives for diversity FY22 FY21 result FY22 target ・Establish Human Assets Policy. Rate of female 3.5% 4% min. ・Expand education system. managers ↓ Rate of female new 2
Slide 19: Piolax Medical Devices, Inc. - Seiichi Sato, President
Friday, December 9, 2022 PIOLAX MEDICAL DEVICES, INC. Seiichi Sato, President All Rights Reserved, Copyright © PIOLAX, INC. 19
Slide 20: Summary
Summary • FY22 1H Results and Full-Year Forecasts • Our expertise • Business topics • New measures responding to COVID-19 • Progress of medium-term plan (FY22-FY24) All Rights Reserved, Copyright © PIOLAX, INC. 20
Slide 21: FY22 1H Results and Full-Year Forecasts
FY22 1H Results and Full-Year Forecasts (Unit: 1 mil. JPY) (Unit: 1 mil. JPY) 1H 1H Achieve- Previous FY22 FY22 Growth Achievement budget result ment year result budget forecast Sales 2,134 2,150 101% 2,292 -6% 4,356 4,323 99% Operating profit -37 100 267% 201 -50% 70 105 150% * The impact of the re
Slide 22: Our Expertise: Therapeutic Guidewires
Our Expertise: Therapeutic Guidewires ☆ Plan and develop guidewires (GW) for various types of minimally invasive treatments ✔ Have excellent processing know-how of Ni-Ti alloy used for the core of guidewires. ✔ Have surface treatment technologies such as "hydrophilic coating" and "fluoroplastic coat
Slide 23: Business Topics (FY22)
Business Topics (FY22) Product line Negative aspect Positive aspect Intravascular Decreased number of patients undergoing Increased use of micro coils for vascular treatment devices catheterization for liver cancer, partly due embolization in terms of cost and usability. to the impact of new drugs.
Slide 24: New Measures Responding to COVID-19
New Measures Responding to COVID-19 《Impact of COVID-19》 ■ Prolonged product shortages and delays in new product launches due to unstable parts procurement. ■ Regulation of visits to medical facilities, decrease in the number of outpatients, and extended surgeries. ■ Reduced opportunities for busine
Slide 25: Medium-Term Plan (2022-2024)
Medium-Term Plan (2022-2024) 1. Introduce differentiated products to specific markets (Differentiation strategies for specific markets) 2. Speed up the launch of new products and strengthen new product lineups 3. Strengthen overseas expansion (complying with regulations in each country) 4. Strengthe
Slide 26: Vision
Vision We will standardize procedures and provide patient-friendly medical devices to solve medical issues. All Rights Reserved, Copyright © PIOLAX, INC. 26
Slide 27: Mission: Smiles for patients around the world
PIOLAX MEDICAL DEVICES, INC. Mission “Smiles for patients around the world” Thank you for your attention All Rights Reserved, Copyright © PIOLAX, INC. 27
Slide 28: Notes on Handling This Document
Notes on Handling This Document The forward-looking statements contained in this document are based on information available to us at the time of publication. Please note that such statements are future projections at this time and contain risks and uncertainties and that actual results may signific