Asahi Diamond Industrial Co., Ltd. · TSE:6140

Asahi Diamond Industrial — Q2 FY2023 Earnings Presentation

27 slides from Asahi Diamond Industrial's earnings presentation, Nov 22, 2023

  1. Slide 1: Financial results briefing

    2nd quarter of the Fiscal Year ending March 2024 Financial results briefing November 22, 2023

  2. Slide 2: Contents

    Contents 01 FY2023 2Q Financial Results 02 FY2023 Forecasts 03 Mid-term management plan progress -2- ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

  3. Slide 3: Financial Results (Consolidated)

    Financial Results (Consolidated) Unit:Millions of yen FY2022 FY2023 1H Results 1H Results YoY change ％ ％ YoY change '22/4-9 '23/4-9 (%) Net sales 19,656 100.0 18,827 100.0 ▲828 ▲4.2 Operating profit 1,536 7.8 638 3.4 ▲897 ▲58.4 Ordinary profit 2,129 10.8 1,215 6.5 ▲913 ▲42.9 Profit attributable to 1

  4. Slide 4: Quarterly trends and results (consolidated)

    Quarterly trends and results (consolidated) Unit:Millions of yen FY2022 FY2023 3Q 4Q １Q ２Q Results % Results % Results % Results % Net sales 10,061 100.0 9,603 100.0 9,028 100.0 9,799 100.0 Operating profit 777 7.7 192 2.0 252 2.8 385 3.9 Ordinary profit 900 9.0 245 2.6 556 6.2 659 6.7 Profit attrib

  5. Slide 5: Net Sales and Composition by Industry (Consolidated)

    Net Sales and Composition by Industry (Consolidated) Unit:Millions of yen FY2022 FY2023 1H Results 2H Results 1H Results YoY change ％ ％ ％ YoY change ʻ22/4-9 ʻ22/10-'23/3 ʻ23/4-9 (%) Electronics and 7,514 38.2 7,243 36.8 6,915 36.7 ▲ 599 ▲8.0 Semiconductor Transportation 4,010 20.4 4,271 21.7 4,469 2

  6. Slide 6: Net Sales Breakdown by Industry: Electronics and Semiconductor

    Net Sales Breakdown by Industry: 1. Electronics and Semiconductor (Include Electroplated Diamond Wire) Half-year Semiconductor and Electronic Net sales (Millions of yen) Net Sales Expect Electroplated Diamond Wire Component Electroplated Diamond Wire Sales 8,000 7,140 7,514 7,243 6,915 Sales decreas

  7. Slide 7: Net Sales Breakdown by Industry: Transportation

    Net Sales Breakdown by Industry : 2. Transportation Half-year Net sales (Millions of yen) 4,271 4,469 4,068 4,046 4,010 4,000 Automobile 2,000 Sales of related tools increased due to recovery 0 of automobile production as semiconductor FY2021 1H FY2021 2H FY2022 1H FY2022 2H FY2023 1H shortage was r

  8. Slide 8: Net Sales Breakdown by Industry: Machinery

    Net Sales Breakdown by Industry : 3. Machinery Net sales Half-year (Millions of yen) 5,377 5,263 5,000 4,824 5,008 4,733 4,000 Bearing 3,000 2,000 Sales to bearing manufacturers decreased due 1,000 to sluggish demand for machine tools, etc. 0 FY2021 FY2021 FY2022 FY2022 FY2023 1H 2H 1H 2H 1H Quarter

  9. Slide 9: Net Sales Breakdown by Industry: Stone and Construction

    Net Sales Breakdown by Industry : 4. Stone and Construction Net sales Half-year (Millions of yen) 2,093 2,077 2,161 2,125 Resource Exploration 2,031 2,000 Sales increased due to steady growth in 1,000 overseas markets 0 FY2021 FY2021 FY2022 FY2022 FY2023 Construction in Japan 1H 2H 1H 2H 1H Sales of

  10. Slide 10: Net Sales Breakdown by Geographical Region (Consolidated)

    Net Sales Breakdown by Geographical Region (Consolidated) Unit:Millions of yen FY2022 FY2023 YoY 1H Results 2H Results 1H Results YoY ％ ％ ％ Change '22/4-9 '22/10-'23/3 '23/4-9 Change (%) Japan 9,711 49.4 9,468 48.0 8,615 45.8 ▲1,095 ▲11.3 Taiwan 1,850 9.4 1,604 8.2 1,513 8.0 ▲336 ▲18.2 China 2,167 1

  11. Slide 11: Consolidated Balance Sheet

    Consolidated Balance Sheet Unit:Millions of yen Assets 2023/03 2023/09 Change Liabilities 2023/03 2023/09 Change ※1 Notes and accounts Cash and deposits 16,375 13,897 ▲2,478 payable - trade 1,477 1,460 ▲17 Notes and accounts 10,059 10,321 262 Income taxes payable 503 510 6 receivable - trade ※2 Reti

  12. Slide 12: Contents

    Contents 01 FY2023 2Q Financial Results 02 FY2023 Forecasts 03 Mid-term management plan progress -12- ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

  13. Slide 13: Outline of Forecasts (Consolidated)

    Outline of Forecasts (Consolidated) Unit︓Millions of yen FY2023 FY2022 YoY Change ％ Full-year Results ％ Full-year Results (%) Forecast Net sales 39,320 100.0 39,200 100.0 ▲0.3 Operating profit 2,506 6.4 1,600 4.1 ▲36.2 Ordinary profit 3,275 8.3 2,400 6.1 ▲26.7 Profit attributable to 2,765 7.0 2,000

  14. Slide 14: Forecasts for Net Sales and Composition by Industry (Consolidated)

    Forecasts for Net Sales and Composition by Industry (Consolidated) Unit︓Millions of yen FY2023 FY2022 YoY Change ％ Full-year Results ％ Full-year Results (%) Forecast Electronics and 14,757 37.5 14,770 37.7 0.1 Semiconductor Transportation 8,282 21.1 9,050 23.1 9.3 Machinery 10,640 27.0 9,850 25.1 ▲7

  15. Slide 15: Forecasts for Net Sales and Composition by Geographical Region

    Forecasts for Net Sales and Composition by Geographical Region(Consolidated) Unit︓Millions of yen FY2023 FY2022 YoY Change ％ Full-year Results ％ Full-year Results (%) Forecast Japan 19,179 48.8 17,900 45.7 ▲6.7 Taiwan 3,454 8.8 3,200 8.2 ▲7.4 China 4,320 11.0 3,600 9.2 ▲16.7 Other Asia and Oceania 5

  16. Slide 16: Contents

    Contents 01 FY2023 2Q Financial Results 02 FY2023 Forecasts 03 Mid-term management plan progress -16- ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

  17. Slide 17: Top global niche manufacturer supporting the world through innovation

    What lies beyond the Mid-term Management Plan 2025 Our aim in "VISION2030" Top global niche manufacturer supporting the world through innovation Three elements to achieve Strengthening Focus on growth Proactive of sectors/areas of Product brand power expertise Development Sales expansion through Eff

  18. Slide 18: Focus on semiconductor segment

    Progress on Priority Themes of Mid-Term Management Plan 2025 Focus on semiconductor segment Aim for high profitability and become industry-leading by focusing management resources on electronics & semiconductor segment Development and Manufacturing  Development of tools for SiC for power semiconduc

  19. Slide 19: Focus on semiconductor segment

    Progress on Priority Themes of Mid-Term Management Plan 2025 Focus on semiconductor segment Sales Growth Rate of 5 Focused Products in FY2025 (compared to FY2022) -19- ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

  20. Slide 20: Why SiC power semiconductors are increasing?

    Why SiC power semiconductors are increasing? ▼ Power semiconductors using SiC and GaN wafers are being released one after another! When Si power semiconductors are replaced by SiC and GaN power semiconductors, ◆Increased power exchange efficiency, power loss is reduced by less than half! ◆Enables op

  21. Slide 21: Power Semiconductors Market

    Power Semiconductors Market (Source: Fuji Keizai, FY2021 Current Status and Future Outlook of the Next-Generation Power Devices and Power Electronics Equipment Market） ▼ The SiC-based power semiconductor market appears to be smaller than the Si-based market, but... What makes the SiC power semicondu

  22. Slide 22: Diamond tools used in semiconductor manufacturing

    Diamond tools used in semiconductor manufacturing 5 focused products on the red frames The above illustration shows a typical semiconductor manufacturing process. Ingot slicing process Edge grinding process Surface Grinding process 《Diamond wire》 《Chamfer/notch wheel》 《Surface Grinding Wheel》 High u

  23. Slide 23: Management Infrastructure Enhancement

    Progress on Key Themes of Mid-Term Management Plan 2025 Management Infrastructure Enhancement IT System: Visualization of management figures and streamlining of operations  Revamp of core system 《to be operational from FY2026》  Sales SFA implementation《to be operational from FY2024》 Global Governa

  24. Slide 24: Optimize resources

    Progress on Key Themes of Mid-Term Management Plan 2025 Optimize resources Reorganize business domain and optimize internal and external resources Intra-group optimization  Analysis of business areas and liquidation of unprofitable divisions  Reorganization of manufacturing and sales network （Reor

  25. Slide 25: Capital Policy and Shareholder Returns

    Capital policy Capital Policy and Shareholder Returns Results for the first Applicable period: FY2023〜FY2025 half of FY2023 Interim dividend  Dividend payout ratio: 50% or more 15 yen per share Dividend payout ratio 61.3%  Total return ratio: 120% or more (3-year average) Treasury stock acquisitio

  26. Slide 26: Forward-looking statements notice

    ・This material contains forward-looking statements other than historical facts. These forecasts and plans are based on information currently available to us and certain assumptions that we believe to be reasonable. Actual results may differ materially from these forecasts due to a variety of factors

  27. Slide 27: ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

    ©All rights reserved by Asahi Diamond Industrial Co., Ltd.

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