Punch Industry Co., Ltd. · TSE:6165
Punch Industry — FY2024 Earnings Presentation
34 slides from Punch Industry's earnings presentation, May 14, 2024
Slide 1: Financial Briefing (Fiscal year ended March 31, 2024)
Financial Briefing (Fiscal year ended March 31, 2024) May 14, 2024 (Security Code: 6165 TSE Standard)
Slide 2: Financial Highlights for the Year Ended March 31, 2024
Financial Highlights for the Year Ended March 31, 2024 Profit declined due to significant decline in sales in Japan and China, as well as raw materials and energy costs remaining high Consolidated sales decreased to 89.6% year-on-year, a decrease of ¥4.4 billion to Consolidated ¥38.3 billion. Decrea
Slide 3: Income Statement Summary
Income Statement Summary (Unit: Millions of yen) Percentage Difference FY23.3 FY24.3 of change year-on-year year-on-year Sales 42,799 38,344 (4,455) 89.6% Operating profit 5.7% 2,436 3.2% 1,240 (1,196) 50.9% Ordinary profit 5.6% 2,394 3.7% 1,421 (972) 59.4% Profit attributable to owners of parent 3.
Slide 4: Sales and Profit
Sales and Profit (Unit: Billions of yen) (FA sales) Sales 00 4.50 00 42.80 （2.48） 00 38.34 （2.64）3.50 2.44 Operating 00 profit [Year-on-year 2.50 comparison] decrease 00 Sales ¥4,455 million in sales 00 1.24 1.50 Operating decrease 00 profit ¥1,196 million in profit 1.39 Net 0.50 decrease 00 profit*
Slide 5: Sales by Region
Sales by Region 50 (Unit: Billions of yen) Sales were affected by a particularly significant decline in China 3.28 Europe, 1.97 The US, Food and medical related 3.56 and remained strong others 1.90 Southeast Asia Vietnam, Indonesia and the 23.45 Philippines performed well 20.44 China Automotive sale
Slide 6: Sales by Industry
Sales by Industry 50 (Unit: Billions of yen) Sales in all industries failed to reach the previous year’s sales. The decline in sales in the automotive sector was particularly significant. Only food and medical – related Other 12.54 remained strong 11.23 Consumer Rising energy costs and other 4.31 el
Slide 7: Operating Profit Changes
Operating Profit Changes (Unit: Millions of yen) FY23.3 2,436 [Major factors for changes in sales] ■ Sales decreased due to Decrease in sales deteriorating market conditions in China and Japan (1,210) [Major factors for changes in ¥1,196 million Rise in cost of cost of sales ratio] decrease from sal
Slide 8: Balance Sheet Summary
Balance Sheet Summary (Unit: Millions of yen) Year-on-year FY23.3 FY24.3 changes Total assets 30,455 29,649 (806) Total liabilities 11,403 10,899 (504) Interest-bearing debt 2,997 3,721 724 Net assets 19,052 18,750 (301) Net cash 2,215 2,310 95 Equity ratio 62.4% 63.1% 0.7pt Return on equity (ROE) 7
Slide 9: Cash Flows Summary
Cash Flows Summary (Unit: Millions of yen) FY23.3 FY24.3 Cash flows from operating activities 2,560 1,276 Cash flows from investing activities (1,546) (680) Free cash flow 1,013 596 Cash flows from financing activities (756) (2) Changes in cash and cash equivalents 543 791 (including translation adj
Slide 10: FY2023-2024 Mid-term Business Plan and FY25.3 Full-Year Earnings Forecasts
April 2024 - March 2025 FY2023-2024 Mid-term Business Plan “Value Creation 2024 Revival” and FY25.3 Full-Year Earnings Forecasts
Slide 11: Key Management Issues of VC2024 Revival
Key Management Issues of VC2024 Revival Specializing in high-value-added special order products business to pursue sustainable profit growth Stock listing VC15 VC2020 VC2024 Revival ● Redevelopment of domestic business ● Growth in overseas business ● Establishment of 5-pole sales system ● Improving
Slide 12: Key Measures of VC2024 Revival
Key Measures of VC2024 Revival Redevelop the ◼ FA sales for FY 24.3 increased to 106.6% year-on-year sales system Developing partner factories and reorganizing operations are underway ◼ Customer Center is streamlining delays in improving operational efficiency ◼ Liquidation of a subsidiary and trans
Slide 13: Figures after Management Rationalization of Businesses in Japan
Figures after Management Rationalization of Businesses in Japan (Comparison of First and Second Half of Fiscal Year) Management rationalization was implemented at the end of September 2023, including the solicitation of voluntary retirees and the dissolution of a consolidated subsidiary Sales for FY
Slide 14: FY25.3 Results and Dividend Forecasts
FY25.3 Results and Dividend Forecasts (Unit: Millions of yen) FY25.3 FY24.3 Full-Year Percentage of (Results) Difference year- Earnings change year-on- on-year Forecasts year Sales 38,344 38,500 155 100.4% Operating profit 3.2% 1,240 5.6% 2,150 909 173.3% Ordinary profit 3.7% 1,421 5.5% 2,100 678 14
Slide 15: Management Targets for VC2024 Revival
Management Targets for VC2024 Revival 0 (Unit: Billions of yen) 5 Sales 42.7 Operating profit 41.0 40.9 39.3 0 38.3 38.5 36.6 35.3 5 32.4 3.0 2.8 2.5 2.4 0 1.9 2.1 1.6 1.2 0.8 5 2.0 1.7 1.2 0 1.3 0.9 1.3 0.4 5 (0.5) Profit 0 attributable to owners 5 (3.4) of parent 0 FY17.3 FY18.3 FY19.3 FY20.3 FY21
Slide 16: Operating Profit Changes
Operating Profit Changes (Unit: Millions of yen) FY23.3 [FY25.3] (Results) 2,436 [Major factors for changes in sales] Decrease in sales ■ Despite the ongoing deterioration (1,210) of the market environment, particularly in Japan and China, we Rise in cost of expect that the market has bottomed sales
Slide 17: Numerical Targets for Sales by Region and Industry
Numerical Targets for Sales by Region and Industry Although the market is improving, sales growth is expected to be modest compared to FY24.3 50 (Unit: Billions of yen) 50 (Unit: Billions of yen) 42.7 42.7 Europe 39.3 3.2 The US, 39.3 Other 40 38.3 38.5 40 and others 38.3 38.5 2.7 1.9 3.5 3.7 12.5 1
Slide 18: Status of Response to Management With an Awareness of Capital Cost and Share Price
Status of Response to “Management With an Awareness of Capital Cost and Share Price” Ensure a healthy financial foundation, and improve corporate value by properly distributing the funds for shareholder returns and investments for further growth ⚫ Revision of the calculation method for the Sharehold
Slide 19: Reference Materials
PUNCH INDUSTRY CO,, LTD.
Slide 20: Punch Group at a Glance
Punch Group at a Glance Establishment Listing March 1975 2012 stock listing (50th anniversary in 2025) 2023 Standard Market Production bases Market share* World No. 2 Japan Overseas （Japan No. 2・ China No. 1） 4 8 *Share of mold and die components industry (our estimate) Sales bases Overseas sales ra
Slide 21: Management Structure
Management Structure Profile of President and Representative Director Board of Directors Representative Director, President Name and date of birth Career and Chief Executive Officer Tetsuji Morikubo Chief Executive Officer (CEO) Tetsuji Morikubo May 2003 Joined the Company Director and Senior Execut
Slide 22: Punch Group History
Punch Group History '70 '80 '90 '00 1975 1982 1990 2001 ⚫ Establishment, manufacture of drilling ⚫ Expansion into plastic mold components ⚫ Manufacturing base established in ⚫ Established sales base in China pins for printed circuit boards (Succeeded in mass production of high- Dalian, China speed s
Slide 23: Description of the Business
Description of the Business Manufacture and sale of a wide variety of precision mold and die components that are indispensable to the molds and dies. The “behind-the-scenes expertise” that enriches our life. For example, parts like these Molds and dies Components Products Molds and dies made Parts n
Slide 24: Punch Group's Core Products
Punch Group’s Core Products Plastic mold components such as injection molding and press die components such as stamping dies, for a wide range of customers spanning upstream to downstream manufacturing Plastic mold components Press die components Plastic molds are used in the manufacture of many pla
Slide 25: Characteristics of the Punch Group: Japan and China
Characteristics of the Punch Group Japan and China Leading share in special order molds and dies * Our estimate Speedy Catalog products solutions Special order products Extensive lineup of highly Capable of responding flexibly versatile standard products to custom needs A one-stop production system
Slide 26: Punch Group Strengths and Network
Punch Group Strengths and Network Extensive lineup of versatile catalog products and special order products to meet custom needs supporting manufacturing across the world Strengths of the Punch Group Punch Group Network Group companies Sales agents China Providing high customer satisfaction • Punch
Slide 27: Composition of Sales by Region and by Industry
Composition of Sales by Region and by Industry Composition of Sales by Region Europe, The US, and others Japan 9.3％ FY24.3 32.4％ Southeast Asia China 5.0％ 53.3％ Composition of Sales by Industry Other Automobile 29.3％ 43.1％ FY24.3 Electronic devices/ Consumer electronics/ precision equipment semicond
Slide 28: Major Customers by Industry
Major Customers by Industry Main rivals in Japan: Major general machinery trading companies, local manufacturers of molds and dies, etc. Main rivals in China: Chinese machinery trading companies, Chinese machinery manufacturers, etc. Major Customers Major Customers Automotive Electronic Electronic d
Slide 29: Image of end users (e.g. Automotive)
Image of end users (e.g. Automotive) Many end users are manufacturers of molds and dies Automotive manufacturers Manufacturers of bodies, exteriors, seats, connectors, etc. Manufacturers of molds and dies Punch Group All Rights Reserved. Copyright ©2011-2012 PUNCH INDUSTRY CO.,LTD. 28
Slide 30: Exhibitions / Seminars (2023-2024)
Exhibitions / Seminars (2023～2024) Terms Location Exhibition 15 ～ 16 Nov Japan Tokyo Monodukuri Partner Forum Tokyo 29 Nov Japan Tokyo Shinagawa SDGs Forum 6 ～ 9 Dec Indonesia Jakarta Manufacturing Indonesia 2023 20 Jan Japan Tokyo IR/Stock Investment Expo 26 Jan Japan Fukuoka Kitakyushu Future Crea
Slide 31: Sales and Operating Profit
Sales and Operating Profit (Unit: Billions of yen) (FA sales) (0.65) Operating profit (0.62) 14.0 120 Sales 114 11.4 (0.83) (0.57) 110 11.0 (0.64) (0.61) (0.60) (0.73) (0.63) (0.65) 12.0 102 (0.71) 10.2 9.8 98 99 10.2 9.9 102 101 (0.64) 10.1 100 94 9.4 96 9.6 9.5 9.6 9.2 92 10.0 80 9.71 0.97 8.00 0.
Slide 32: Sales by Region
Sales by Region (Unit: Billions of yen) 11.4 11.0 0.88 10.2 10.2 0.95 10.1 9.8 9.9 0.51 0.72 9.4 9.6 9.5 9.6 Europe, 9.2 0.79 0.64 0.49 0.73 The US, 0.66 0.47 and Others 0.56 0.45 0.46 0.49 0.91 0.92 0.85 0.88 0.44 0.39 0.50 0.49 0.44 Southeast 0.47 Asia 6.58 5.94 5.59 5.21 5.30 5.53 5.40 4.85 4.77
Slide 33: Sales by Industry
Sales by Industry (Unit: Billions of yen) 11.4 11.0 10.2 9.9 10.2 10.1 9.8 9.6 9.6 9.4 9.5 9.2 3.37 3.39 2.77 2.75 2.85 2.93 2.71 2.78 2.44 2.68 2.88 2.88 Other 1.16 1.07 1.06 1.11 Consumer 1.07 1.06 0.99 electronics/ 0.99 0.94 0.93 0.88 0.90 precision equipment 2.17 2.16 1.95 1.98 1.77 Electronic 1
Slide 34: Contact and Disclaimer Regarding Forward-Looking Statements
Mold model (acrylic) Metal parts are Punch’s products IR & PR Division, Corporate Strategy Planning Office, PUNCH INDUSTRY CO., LTD. E-mail: info-corp@punch.co.jp Disclaimer Regarding Forward-Looking Statements This report contains forward-looking statements regarding Punch Industry’s future plans,