Slide 1: Results Briefing for the Six Months Ended September 30, 2024
Securities ID code: 6859 ESPEC CORP. Results Briefing for the Six Months Ended September 30, 2024 November 21, 2024 Satoshi Arata Representative Director and President
Slide 2: Financial Result for the Six Months Ended September 30, 2024
Financial Result for the Six Months Ended September 30, 2024 Orders received were strong both in Japan and overseas, and both sales and profit increased due to factors such as the effects of increasing domestic production capacity. Orders, sales, and profits all reached record highs. Comparison with
Slide 3: Summary of Profits and Losses
Summary of Profits and Losses (Millions of yen) FY 2023 2Q FY 2024 2Q FY 2024 2Q Comparison with Year on Year Results Forecasts Results Forecasts Orders Received 33,440 31,000 36,621 +9.5% +18.1% Net Sales 27,257 30,500 30,464 +11.8% -0.1% Cost of Net Sales +8.7% -3.8% 17,771 20,100 19,326 1.8pt 2.5
Slide 4: Performance by Segment
Performance by Segment (Millions of yen) FY 2023 2Q FY 2024 2Q FY 2024 2Q Comparison with Segment Year on Year Results Forecasts Results Forecasts Orders Received 29,198 26,900 31,868 +9.1% +18.5% Equipment Business Net Sales 23,533 26,600 26,469 +12.5% -0.5% Operating Profit 2,175 2,680 3,013 +38.5
Slide 5: Orders Received in FY2024 2Q
Orders Received in FY2024 2Q ■ Although a year-on-year decrease in orders received was forecast, orders received in FY2024 1H hit a record high for the fourth consecutive period, driven by strong performance in both Japan and overseas. Trends in orders received per quarter (Millions of yen) 19,633 2
Slide 6: Net Sales in FY2024 2Q
Net Sales in FY2024 2Q ■ Net sales increased particularly in Japan, due partly to the effects of increasing domestic production capacity. FY2024 1H net sales reached a record high for the third consecutive period. Trends in net sales per quarter (Millions of yen) 19,937 20,000 16,919 16,773 14,981 1
Slide 7: Analysis of Operating Profit Increase and Decrease Factors
Analysis of Operating Profit Increase and Decrease Factors ■ Despite an increase in SG&A, profit increased due to sales growth and improvement in the cost-of-sales ratio through price hikes, particularly in the Equipment Business. (Millions of yen) Equipment Business Service Business Other Business
Slide 8: Statement of Assets and Liabilities
70,600 End of FY2024 2Q 7 (Millions of yen) Liabilities and Net assets Net assets ■ Total assets decreased by ¥7.6 billion, due to factors including the collection of trade Noncurrent liabilities Other current liabilities -7,635 Short-term borrowings End of FY2023 Electronically recorded obligations
Slide 9: Statements of Cash Flows
8 (Millions of yen) ■ Cash decreased by approximately ¥2.7 billion, mainly due to the repayment of short-term -2,723 Increase (decrease) in borrowings, while operating activities provided net cash of approximately ¥3.1 billion. funds -301 Effect of exchange rate changes -5,310 Total financial cash f
Slide 10: Equipment Business
Equipment Business (Millions of yen) FY 2023 2Q FY 2024 2Q FY 2024 2Q Comparison with Year on Year Results Forecasts Results Forecasts Orders Received 29,198 26,900 31,868 +9.1% +18.5% Net Sales 23,533 26,600 26,469 +12.5% -0.5% Operating Profit 2,175 2,680 3,013 +38.5% +12.4% Profit Ratio(%) 9.2% 1
Slide 11: Service Business
Service Business (Millions of yen) FY 2023 2Q FY 2024 2Q FY 2024 2Q Comparison with Year on Year Results Forecasts Results Forecasts Orders Received 3,785 3,700 4,176 +10.3% +12.9% Net Sales 3,445 3,500 3,701 +7.4% +5.8% Operating Profit 249 250 324 +30.3% +29.9% Profit Ratio(%) 7.2% 7.1% 8.8% After
Slide 12: Other Business
Other Business (Millions of yen) FY 2023 2Q FY 2024 2Q FY 2024 2Q Comparison with Year on Year Results Forecasts Results Initial Forecasts Orders Received 655 600 808 +23.2% +34.7% Net Sales 475 600 521 +9.6% -13.0% Operating Profit -88 -30 -31 - - Profit Ratio(%) -18.6% -5.0% -5.9% Environmental Co
Slide 13: Sales by Market
Sales by Market ■ The automobile market’s sales ratio increased as progress was made on recording sales of products for EVs and batteries. Non-Consolidated (Equipment Business) 電子部品・電子機器市場 自動車市場 半導体市場 研究機関 その他市場 100% 30 80% 40 40 38 38 60% 16 16 32 17 21 40% 15 15 11 18 10 6 6 8 8 20% 7 23 25 22 18
Slide 14: Sales by Region
Sales by Region ■ Net sales increased particularly in Japan and North America, while net sales in China remained mostly unchanged year on year. FY 2023 2Q FY 2024 2Q Overseas sales ratio: 55.9% Overseas sales ratio: 58.9% ■ North America & Europe 7,728 6,573 24.1% ■China 25.4% 11,211 13,430 41.1% ■T
Slide 15: Forecasts for Fiscal 2024
Forecasts for Fiscal 2024 ■ Main points of full-year forecasts ・ The full-year forecast for orders received was upwardly revised and strong performance will be maintained, although the 1H momentum will settle down. ・Initial forecasts for full-year net sales and operating profit will be maintained, c
Slide 16: Forecasts for Fiscal 2024
Forecasts for Fiscal 2024 (Millions of yen) FY 2023 FY 2024 FY 2024 Forecasts Full Year Full Year (Revised orders-received, gross profit and SG&A 1H Results Results Initial Forecasts expenses) 2H Full year Year on Year Orders-received 62,290 63,000 36,621 30,379 67,000 +7.6% Net sales 62,126 65,000
Slide 17: Investment Plans in FY2024
Investment Plans in FY2024 (Millions of yen) FY 2023 FY 2024 FY 2024 Forecasts (no change from the initial forecasts) Full Year Full Year 1H Results Results Initial Forecasts 2H Full year Year on Year Capital expenditures 2,696 3,190 1,008 2,182 3,190 +18.3% Depreciation expenses 1,492 1,670 818 852
Slide 18: Recognition of the Operating Environment
Recognition of the Operating Environment ■ Orders will see the momentum of 1H settle down, but demand for EVs, batteries, and other fields will continue in Japan. There are some concerns about slowdowns in China and Europe. Japan: Large-scale projects will decrease, while EV- and battery-related inv
Slide 19: Segment Financial Forecasts
Segment Financial Forecasts (Millions of yen) FY 2023 FY 2024 FY 2024 Full Year Full Year Forecasts (Revised orders-received) Initial 1H Results Results Forecasts 2H Full Year Year on Year Orders-Received 53,565 53,700 31,868 25,831 57,700 +7.7% Equipment Business Net sales 53,518 56,000 26,469 29,5
Slide 20: FY 2024 Dividend Forecast
FY 2024 Dividend Forecast ■ No revision to the FY2024 annual dividend forecast of ¥80, with the dividend payout ratio projected at 33.6%. Dividend per share and dividend payout ratio (yen) Interim Year-end (forecast) *2 *3 75 80 80 68 68 69 *1 70 58 60 60 51 45 50 45 50 32 36 46 46 40 38 42 26 30 41
Slide 21: Basic policy on profit distribution
Basic policy on profit distribution Our basic policy is to determine dividends reflecting 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 a baseline. While reflecting a nec
Slide 22: Main Initiatives in FY2024
Main Initiatives in FY2024 Equipment Business ・Increase production capacity in Japan (increase personnel, expand production space, utilize outsourcing). ・Expand lineup of high-value-added products. Service Business After-sales Service: Expand preventative maintenance services through “super support
Slide 23: Main Initiatives for ESG in FY2024
Main Initiatives for ESG in FY2024 ■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 24: TOPICS: Start Service at Aichi Next Generation Mobility Test Lab
TOPICS 1 Start Service at “Aichi Next Generation Mobility Test Lab” Addressing Testing Demand for Automotive Rechargeable Batteries and EV and Automation Modules ■Aichi xEV Battery Safety Test & Certification Center ■Toyota Test Center ・Scheduled to open in February as one of Japan’s ・Scheduled to e
Slide 25: TOPICS: Low GWP Refrigerant Chambers
TOPICS 2 Low Temperature (& Humidity) Chambers COSMOPIA HIGHTECH CORP. Launched a Featuring a Low GWP Refrigerant Rapid-Rate Thermal Cycle Chamber featuring a Launch of Platinous J Series ECO Type Low GWP Refrigerant for the First Time in Japan ・In November 2024, launched the ECO Type in the ・In Oct
Slide 26: External Recognition
External Recognition ■2024 Nov.・Rated 3.5 stars in the Nikkei General Sustainability Survey’s SDGs Management category ・Rated 3 stars in the Nikkei General Sustainability Survey’s Smart Work Management category Sep. ・First Awarded as an excellent company in the Gomez ESG Website Ranking 2024 Jul. ・F
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, fo
Slide 28: Quality is more than a word
Quality is more than a word ESOEC ESPEC CORP.