Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — Investor Day (August 2018)
24 slides from Nissha Co.ltd's investor day presentation, August 2018
Slide 1: Medical Technologies Business Unit
MEDICAL TECHNOLOGIES BUSINESS UNIT Junya Suzuki President and CEO Sam Heleba Senior Vice President General Manager of Medical Technologies Business Unit INVESTORS CONFERENCE August 2018
Slide 2: We realize the enrichment of people's lives with our technologies
We realize the enrichment of people’s lives with our technologies. IT Automotive Market Medical Devices Product creation High-function packing materials Nissha’s core technologies Our growth strategy Printing Patterning Extension and integration of core technologies Making performance in global
Slide 3: M&A exerts growth
M&A exerts growth M&A investment in 2015-2017 was 35billion JPY and ROIC was 9%. ✔ *ROIC on cash basis = EBITDA * (1-tax rate 30％) / Investment Medical Devices (Medical Technologies) Graphic Controls Group Acquired: Sep 2016 Headquarters: US Integral Process Acquired: Oct 2017 Headquar
Slide 4: High expectation for the growth of Medical Technologies
High expectation for the growth 350,000 Medical 300,000 Technologies Business Unit CAGR︓2017→2020 JPY in million Medical Technologies 250,000 Medical Technologies Business Unit CAGR 20% Acquired Graphic Controls in Sep 2016 200,000 Our 4th business unit 150,000 Devices CAGR 2% 100,000 Industrial
Slide 5: Why Graphic Controls?
Why Graphic Controls? (Center firm of Medical Technologies) DNA Core technologies Growth by transformation M&A capability NISSHA CONFIDENTIAL PROPRIETARY 16
Slide 6: Common core technologies and similar growth history
Common core technologies and similar growth history Devices Industrial Materials Medical Technologies Business Media Information and Communication Data recording Printing Coating Laminating Molding Patterning Printing since 1929 Printing since 1909 NISSHA CONFIDENTIAL PROPRIETARY 17
Slide 7: Medical Technologies management team with business experience around 150 years
Medical Technologies management team with business experience around 150 years SAM HELEBA Senior Vice President | NISSHA 上席執⾏役員 メディカルテクノロジー事業部⻑ General Manager | NISSHA Medical Technologies President & CEO | Graphic Controls Holdings STEVE OKUMURA Deputy General Manager メディカルテクノロジー副事業部⻑ NISSHA Medic
Slide 8: Medical Technologies Business Unit (MTBU)
MEDICAL TECHNOLOGIES BUSINESS UNIT (“MTBU”)
Slide 9: Medical Devices Business Media
Medical Devices Business Media ✔ ✔ Medical device design, Innovative consumable development & contract medical products direct to manufacturing services hospitals and distributors Industrial charts and markers NISSHA CONFIDENTIAL PROPRIETARY 20
Slide 10: Global Medical Footprint
Global Medical Footprint Over 1,300 Associates V B Buffalo, NY Torbay, UK Sandpoint, ID B B Hartford, CT Innsbruck, AT V V B Kyoto, JP Paris, FR Colorado Springs, CO B San Pedro, DR NISSHA CONFIDENTIAL PROPRIETARY 21
Slide 11: MTBU Pillars of Growth
MTBU Pillars of Growth Sustainable, Global & Scalable NISSHA CONFIDENTIAL PROPRIETARY 22
Slide 12: Target Segments
Target Segments Cardiology & Acute Care Consumables 3 ●Surgical Robots ●Artificial ●Dialysis Heart Circuit ●Stent ●Pacemaker ●Cardio ●Dialyzer Catheter ●Electrical ●Artificial ●Guidewires Scalpel Blood Vessels ●Endoscope ●Osteosynthesis 2 ●Ventilator FDA Class ●ECG ●Clip ●Blood Treatment Material Mo
Slide 13: Medical Device Market Trend
Medical Device Market Trend Increasing Opportunities (JPY in Trillions) OEMs are turning toward 25 manufacturers to 20 consolidate and outsource CAGR 7.3 more product lines. 15 4.9 10.5% We are highly sought 10 CAGR 4.2% after with vertically 13.4 15.8 integrated technologies 5 and paths of manufact
Slide 14: Building Technical Devices for OEMs
Building Technical Devices for OEMs In high CAGR Sectors for Loyal Customers ELECTROSURGICAL DEVICES CABLES & VASCULAR ACCESS LEADWIRES & GUIDE WIRES WEARABLE PATIENT MONITORING NISSHA CONFIDENTIAL PROPRIETARY 25
Slide 15: Partnering with many of the Top OEMs
Partnering with many of the Top OEMs The OEM trademarks identified herein are the trademarks of the respective OEMs, and not those of Nissha or any subsidiaries thereof. Nissha disclaims any affiliation, connection or association between its products or services and those of the respective OEMs. NIS
Slide 16: Paths of Optimization
One Partner – Design, Development & Manufacturing Added Project Idea Generation Project Outline Cost Reduction Innovation & Enhancements & Layout & Scheduling Initiatives Enhancement to Final Product Paths of Optimization MANUAL ASSEMBLY SEMI-AUTOMATION FULL-AUTOMATION NISSHA CONFIDENTIAL PROPRIETAR
Slide 17: Specialty Consumables Advancing Patient Care at Top Hospitals
Specialty Consumables Advancing Patient Care at Top Hospitals A Diverse & Growing Product Portfolio with a Stable CAGR DEFIBRILLATION PADS GROUNDING ECG PADS ELECTRODES PATIENT MONITORING CONSUMABLES NISSHA CONFIDENTIAL PROPRIETARY 28
Slide 18: Transferring Acquired Technology Worldwide
Transferring Acquired Technology Worldwide NISSHA CONFIDENTIAL PROPRIETARY 29
Slide 19: Graphic Controls track record of acquiring and integrating companies
MEDICAL TECHNOLOGIES Graphic Controls has an excellent track record of acquiring and integrating companies. Completing 7 medical device acquisitions worldwide in just 8 years. NISSHA CONFIDENTIAL PROPRIETARY 30
Slide 20: M&A Discipline
M&A Discipline A Proven Process NISSHA CONFIDENTIAL PROPRIETARY 31
Slide 21: Medical Technologies Business Unit Mid-term Vision
Medical Technologies Business Unit Mid-term Vision (JPY in Billions) 35 32.0 30 25 20.0 20 18.2 15 10 5 0 FY2017.12 FY2018.12 FY2019.12 FY2020.12 NISSHA CONFIDENTIAL PROPRIETARY 32
Slide 22: Closing
' AlssHa |) CLOSING
Slide 23: Profitability: Mid-term Vision
Medical Technologies Business Unit Mid-term Vision EBITDA margin 30% （2020/12） *Size of circle: Sales Medical Devices ＝ （Dec 2020 expectation） Medical Technologies 25% Sales 32 High-function Sales CAGR 20.7% IT packing materials （2017/12〜2020/12） 20% EBITDA 4.5 EBITDA margin 14.1％ Profitability 15%
Slide 24: Confidentiality notice
This document contains confidential information and all rights regarding the document belong to Nissha Group. Therefore, any disclosure and/or leakage of the document to any third parties other than recipients of the documents, and copy, transfer and/or citation of the document without the prior aut