Piolax, Inc. · TSE:5988

Piolax — FY2021 Earnings Presentation

35 slides from Piolax's earnings presentation, Jun 9, 2022

Slide 2: Contents
Contents I. Medium-Term Management Plan (FY22 to FY24) ・Business Environment ・Management Indicators ・Growth Strategies (1. Automotive Business, 2. Medical Device Business) II. Review of Capital Policy III. Promotion of ESG Management All Rights Reserved, Copyright © PIOLAX, INC. 2
Slide 4: Vision, Basic Policies, And Management Strategies
Vision, Basic Policies, And Management Strategies Vision As a pioneer creating elasticity, widely contribute to industries and society. Basic Policies 1. Reform existing businesses. 2. Take on the challenge of new/next-generation businesses. 3. Strength the management foundation. 4. Actively invest
Slide 5: Business Environment
Business Environment Red letters: Modified from the Growth factors Risk factors previous version Continued increase in global automobile • Reduced production of major customers production • Decreased orders for existing Piolax Global automobile production forecast (Unit: 1 million cars) products due
Slide 6: Management Indicators - 1
Management Indicators - 1 Medium-term management plan (FY22-FY24) and review of previous plan (FY21-FY23) Sales Operating profit Previous (100 mil. JPY) Previous New New (100 mil. JPY) Operating Operating profit ratio (Previous) profit ratio 800 Operating profit ratio (New) 20% 700 683 720 105 650 6
Slide 7: Management Indicators - 2: by Segment
Management Indicators - 2: by Segment Assumptions for FY24 sales plan (72 billion yen) Recovery of global car production by OEMs to the FY19 level Increase in sales per car by 10% for each new model Exchange rate: 1 USD = 120 JPY Operating profit in the medium-term plan will be secured by the increa
Slide 8: Management Indicators - 2: by Segment
Management Indicators - 2: by Segment Factors for downward revision: uncertainty about product supply due to component procurement risks, delayed launch of new products due to voluntary recall of in-house and imported products Impact of voluntary recall was reflected in FY21. Accelerate the introduc
Slide 10: Progress of Management Strategy: Automotive - 1
Progress of Management Strategy: Automotive - 1 Management strategy and Specific measures Medium-term management priority issues (FY21 actual) plan initiatives 1.Product and customer Establish e-Products Development Accelerate response to CASE strategy Dept. to respond to CASE ・Develop CASE parts an
Slide 11: Progress of Management Strategy: Automotive - 2
Progress of Management Strategy: Automotive - 2 Management strategy and Specific measures Medium-term management priority issues (FY21 actual) plan initiatives 4.Growth investment Start construction of new Moka Plant FY23: Complete the phase 1 strategy at full scale construction and start operation
Slide 12: Expand sales of CASE-compliant products
Expand sales of CASE-compliant products Sales expansion target [Actions in FY22] By product ratio Power supply port Shift focus from development to order taking Actuator Launch e-Products Development Dept. in April 2022 to respond to CASE consisting of Bus bar members from sales, development, and Ot
Slide 13: Initiatives by Overseas Sites
Initiatives by Overseas Sites Diversify products and customers (Enhance sales from non-Japanese OEMs) Europe (U.K. and Germany) ・Enhance sales from German OEMs using the representative office in (100 mil. Medium-term plan of sales of JPY) Germany overseas sites ・Consider production relocation in Eur
Slide 14: Infrastructure Development in Japan
Infrastructure Development in Japan Infrastructure development for future growth 1. New Moka Plant Construction of phases 1 and 2 <Next-generation plant> Global Mother Plant Start of construction: Second half of FY22 Introduction of next-generation equipment and Full-scale operation: FY23 injection
Slide 15: Image of New Moka Plant - 1
Image of New Moka Plant - 1 Global Mother Plant which will publish the Piolax brand worldwide Respond to a wide variety of demands in the automotive industry through advanced production equipment and systems Establish a highly profitable production system: 200% productivity Cutting-edge plant that i
Slide 20: Capital Investment for Sustainable Growth
Capital Investment for Sustainable Growth Capital investment for future growth centered on infrastructure development in Japan FY22-24 Capital investment and depreciation • Infrastructure development in Japan Medium-term plan - New Moka Plant Total 22.6 bil. JPY - Yokohama area renewal plan Infrastr
Slide 22: Progress of Management Strategy: Medical Device Business
Progress of Management Strategy: Medical Device Business Management strategy Specific measures Medium-term management plan and priority issues (FY21 actual) initiatives 1.Product and ■ Launch differentiated products Medium-term launch plan customer strategy to specific markets (Strategic new product
Slide 23: Introduction of New Medical Device
Introduction of New Medical Device Expand market share with newly launched guide wire for digestive endoscope To be launched in 2 in 1 guide wire (GW) October 2022 in Japan High-spec GW that combines two factors required for GW Tip end Back end Max. outer diameter: φ0.64 mm (0.025 inches) ←Seeking s
Slide 25: For Creating Corporate Value - 1
For Creating Corporate Value - 1 Trends of ROIC and WACC EVA spread remained negative for three consecutive years since 2019 ROIC WACC 8.0% 2.0% 2017 2018 2019 2020 2021 All Rights Reserved, Copyright © PIOLAX, INC. 25
Slide 26: For Creating Corporate Value - 2
For Creating Corporate Value - 2 Trends of PBR and EVA PBR also declined significantly since 2019 when EVA spread turned negative Aim for positive EVA spread and PBR greater than 1 PBR EVA spread Measures to turn EVA 1.5 6 PBR spread positive EVA spread Strengthen shareholder returns and pursue capi
Slide 27: Review of Capital Policy
Review of Capital Policy FY23 management FY24 management indicators (Revised) indicators (Previous) ROE 8% or more 8% or more (Final target: 10% or more) Final target: 10% or more, positive EVA spread Consolidated dividend payout 30% or more 100% ratio ROE trend Dividends and Dividend Payout Ratio D
Slide 28: Financial Planning and Capital Policy
Financial Planning and Capital Policy Cash allocation Cash allocation image for three years from FY22 to FY24 Three-year capital policy from FT22 to FY24 (100 mil. Control the increase in equity capital JPY) 100% dividend payout ratio New borrowing Flexible purchase/retirement of treasury stock Capi
Slide 30: Promote ESG Management -1
Promote ESG Management -1 Applicable Materiality Piolax Major initiatives major SDGs ESG Vision 2030 • Energy Corporate activities aiming for ・Activities toward carbon • Emission into the air a carbon-free society and a neutral: reduction of • Waste recycling-oriented society greenhouse gas and ener
Slide 31: Promote ESG Management -2
E Promote ESG Management -2 Initiatives for climate change Disclosing information based on TCFD recommendations In March 2022, we announced our endorsement of the TCFD recommendations and disclosed information on our initiatives based on the TCFD recommendations. We will further strengthen our activ
Slide 32: Promote ESG Management -3
S Promote ESG Management -3 Promoting diversity and health management We regard the promotion of diversity as an important management issue. We will strive to create a comfortable working environment by improving our education system and reforming work styles so that human resources with diverse bac
Slide 33: Promote ESG Management - 4
G Promote ESG Management - 4 Governance system: increasing the diversity of the Board of Directors The Board of Directors if approved at our General Meeting of Shareholders on June 24, 2022 9 directors in FY21 → 10 directors in FY22 <New system> <Director skill matrix> 1) Increase of female director
Slide 34: Promote ESG Management - 5
G Promote ESG Management - 5 Governance system: establishment of Sustainability Committee December 2021 Corporate Governance System Chart Setup of Sustainability Committee Establishment of Sustainability Policy Outline of Sustainability Committee Members Chairperson: President Members: Persons elect
Slide 35: 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

Piolax — FY2021 Earnings Presentation on 6ix

Piolax — FY2021 Earnings Presentation

Slide 1: Piolax, Inc. Results Briefing, June 9, 2022

Slide 2: Contents

Slide 3: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 4: Vision, Basic Policies, And Management Strategies

Slide 5: Business Environment

Slide 6: Management Indicators - 1

Slide 7: Management Indicators - 2: by Segment

Slide 8: Management Indicators - 2: by Segment

Slide 9: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 10: Progress of Management Strategy: Automotive - 1

Slide 11: Progress of Management Strategy: Automotive - 2

Slide 12: Expand sales of CASE-compliant products

Slide 13: Initiatives by Overseas Sites

Slide 14: Infrastructure Development in Japan

Slide 15: Image of New Moka Plant - 1

Slide 16: Image of New Moka Plant - 2

Slide 17: Image of New Moka Plant - 3

Slide 18: Image of New Moka Plant - 4

Slide 19: Image of New Moka Plant - 5

Slide 20: Capital Investment for Sustainable Growth

Slide 21: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 22: Progress of Management Strategy: Medical Device Business

Slide 23: Introduction of New Medical Device

Slide 24: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 25: For Creating Corporate Value - 1

Slide 26: For Creating Corporate Value - 2

Slide 27: Review of Capital Policy

Slide 28: Financial Planning and Capital Policy

Slide 29: All Rights Reserved, Copyright © PIOLAX, INC.

Slide 30: Promote ESG Management -1

Slide 31: Promote ESG Management -2

Slide 32: Promote ESG Management -3

Slide 33: Promote ESG Management - 4

Slide 34: Promote ESG Management - 5

Slide 35: Notes on Handling This Document