Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — H1 FY2024 Earnings Presentation
24 slides from Nihon Dempa Kogyo's earnings presentation, Nov 15, 2024
Slide 1: First-Half Results for Fiscal 2024 (Ending March 31, 2025)
First-Half Results for Fiscal 2024 (Ending March 31, 2025) November 15th, 2024 Nihon Dempa Kogyo Co., Ltd. Note: Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements
Slide 2: Contents
Contents 1. First-Half Results for FY2024 (Ending March 31, 2025) 2. Full-Year Outlook for FY2024 (Ending March 31, 2025) 3. Market Outlook for Medium-Term and Capital Investment Presented by Hiromi Katoh, Representative Director and President Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 2
Slide 3: Summary of Financial Results
1. First-Half Results for FY2024(Ending March 31, 2025) Summary of Financial Results ◼ 1H (Apr.-Sep.) FY2024, both sales and profit exceeded the forecasts. ◼ Sales and profit increased YoY. ① ② ②-① ③ ②-③ (Million yen) 1H FY2024 1H FY2023 1H FY2024 Change from YoY Forecasts Results Results forecasts
Slide 4: Net Sales by Application (YoY)
1. First-Half Results for FY2024(Ending March 31, 2025) Net Sales by Application (YoY) ◼ Net sales increased YoY mainly for mobile communications and automotive electronics. ◼ Net sales for mobile communications, IoT, industrial equipment, consumer exceeded the initial forecast, while the automotive
Slide 5: Operating Income: Analysis of Changes from FY2023
1. First-Half Results for FY2024(Ending March 31, 2025) Operating Income: Analysis of Changes from FY2023 ◼ Increased costs for human recourses/DX investments are absorbed by increased net sales and improved utilization rate. Along with foreign exchange gains (yen depreciation) and improved profitab
Slide 6: Financial Results (Quarterly)
1. First-Half Results for FY2024(Ending March 31, 2025) Financial Results (Quarterly) ◼ Net sales in 2Q FY2024 increased QoQ, mainly driven by mobile communications. ◼ Operating income in 2Q FY2024 declined slightly QoQ due to increased labor costs and inventory reduction. Net Sales Operating Income
Slide 7: Net Sales (by Main Application)
1. First-Half Results for FY2024(Ending March 31, 2025) Net Sales (by Main Application) ◼ Net sales in 2Q FY2024 increased QoQ for all three applications. ◼ Increased net sales for industrial equipment was driven by sales for data centers. (Billion yen) Automotive Electronics Mobile Communications /
Slide 8: Financial Position
1. First-Half Results for FY2024(Ending March 31, 2025) Financial Position ◼ Shareholders’ equity ratio up to 43.9% as of the end of September 2024. Received ¥5.0 billion Raised approx. ¥4.0 billion by the investment through public offering carried out in May issuance of Class A shares 2022. The Cla
Slide 9: Contents
Contents 1. First-Half Results for FY2024 (Ending March 31, 2025) 2. Full-Year Outlook for FY2024 (Ending March 31, 2025) 3. Market Outlook for Medium-Term and Capital Investment Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 9
Slide 10: Consolidated Financial Forecasts
2. Full-Year Outlook for FY2024 (Ending March 31, 2025) Consolidated Financial Forecasts ◼ Full-year Forecasts for FY2024 remains unchanged from the initial forecasts. ・Uncertainty in the automotive market outlook. ・Sales for smartphone are expected to be comparatively greater in 1H of the year. ・ D
Slide 11: Net Sales Forecasts for 2H FY2024
2. Full-Year Outlook for FY2024 (Ending March 31, 2025) Net Sales Forecasts for 2H FY2024 (Billion yen) 30.0 26.3 26.2 ◼ Net sales forecasts for 1H⇒2H 25.0 Mobile communications 1H>2H Automotive electronics 1H=2H 20.0 Industrial equipment 1H<2H Consumer and Others 1H<2H 15.0 ◼ Sales for automotive e
Slide 12: Contents
Contents 1. First-Half Results for FY2024 (Ending March 31, 2025) 2. Full-Year Outlook for FY2024 (Ending March 31, 2025) 3. Market Outlook for Medium-Term and Capital Investment Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 12
Slide 13: Automotive Electronics
3. Market Outlook for Medium-Term and Capital Investment Automotive Electronics ◼ The number of crystal devices equipped per vehicle is expected to continue to grow. ◼ To strengthen transactions with Chinese Tier 1 manufacturers is an issue. Net sales in automotive electronics market (Billion yen) 4
Slide 14: Mobile Communications
3. Market Outlook for Medium-Term and Capital Investment Mobile Communications ◼ Sales for 76.8MHz crystal units increase gradually. ⇒Introducing new technology to improve yields of photolithography blanks. Net sales in mobile communications market (Billion yen) 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Results
Slide 15: Industrial Equipment
3. Market Outlook for Medium-Term and Capital Investment Industrial Equipment ◼ The demand for crystal devices for data centers (optical transceivers) are increasing. ◼ Expanding sales to meet rapid AI server demand. Net sales in industrial equipment market (Billion yen) 8.0 7.0 6.0 5.0 4.0 3.0 2.0
Slide 16: Net Sales (Data Center)
3. Market Outlook for Medium-Term and Capital Investment Net Sales (Data Center) ◼ Examples of optical communication modules (optical transceivers) usage in data centers. optical communication modules (optical transceivers) Block diagram ・Using optical communication modules (optical transceivers) in
Slide 17: Industrial Equipment (Data Center)
3. Market Outlook for Medium-Term and Capital Investment Industrial Equipment (Data Center) Forecast for crystal oscillators demand (Billion yen) 16.0 for optical transceivers Optical Communication Market Products for 800G/1.6T Compound Annual Growth Rate (CAGR) of over 30% 14.0 12.0 Produc t appear
Slide 18: Industrial Equipment (AI Server)
3. Market Outlook for Medium-Term and Capital Investment Industrial Equipment (AI Server) ◼ Targets and promotional products of crystal devices within AI servers. <Targeted Areas> ・Motherboard(CPU/GPU) ・NIC（Network Interface Card） ・Time Card（Time synchronization function Internal Configuration of AI
Slide 19: Frequency Synthesizer/QCM Sensor
3. Market Outlook for Medium-Term and Capital Investment Frequency Synthesizer/QCM Sensor ◼ Aiming sales expansion in frequency synthesizer sales to meet the growing defense and space-related demand. Net sales in synthesizers/sensors market (Billion yen) 3.0 2.5 Fr e quency s ynt he s i z e r 2.0 1.
Slide 20: Capital Investment
3. Market Outlook for Medium-Term and Capital Investment Capital Investment ◼ Key areas where investment will be increased in the next mid -term plan ①Smart factory initiatives (high-speed line implementation and DX promotion) ②R&D investment（mainly in photolithography processing technology) ③New bu
Slide 21: Image of Net Sales for FY2030
3. Market Outlook for Medium-Term and Capital Investment Image of Net Sales for FY2030 ◼ Aiming for net sales of ¥100 billion and an operating income ratio of 20% in 2030. Operating income ratio 20.0% 100.0 (Billion yen) 90.0 Operating Operating New businesses： income ratio income ratio Ap p r o x i
Slide 22: Publication of NDK Report 2024
Publication of NDK Report 2024 ◼ Publishing the NDK Report (in Japanese and English), which integrates financial and non-financial information, on our website. Here is the link to the website Here is the link to the website Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 22
Slide 23: Final Comments
Final Comments ◼ Advance initiatives to ensure the transformation into a highly profitable corporate structure. Current location Global financial crisis Slump in business Preparation period for Tow ard COVID-19 performance sustainable grow th sustainable grow th FY2010 FY2015 FY2019 FY2020 FY2022 FY
Slide 24: Nihon Dempa Kogyo Co., Ltd
November 15th, 2024 Nihon Dempa Kogyo Co., Ltd Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 24