Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — FY2023 Earnings Presentation
34 slides from Nihon Dempa Kogyo's earnings presentation, May 23, 2024
Slide 1: Full-Year Results for Fiscal 2023 (Ended March 31, 2024)
Full-Year Results for Fiscal 2023 (Ended March 31, 2024) May 23, 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 about ou
Slide 2: Contents
Contents 1. Results For FY2023 (Ended March 31, 2024) 2. Financial Forecast for FY2024 (Ending March 31, 2025) 3. Toward Vision 2030 Presented by Hiromi Katoh, Representative Director and President Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 2
Slide 3: Summary of Financial Results
1．Results For FY2023 (Ended March 31,2024) Summary of Financial Results ◼ Sales and profit for FY2023 declined YoY. ◼ The results exceeded from the forecast as of November 8 (exceeded in mobile communications etc.). ① ② ②ー① FY2023 FY2023 (Million yen) FY2022 FY2023 FY2023 FY2023 2H Full Year Full Ye
Slide 4: Net Sales by Application (YoY)
1．Results For FY2023 (Ended March 31,2024) Net Sales by Application (YoY) ◼ Net sales for of automotive electronics increased, but net sales for mainly industrial equipment and consumer declined. Net Sales Factors of increase/decrease (Billion yen) FY2022 FY2023 YoY Automotive Volume remained flat,
Slide 5: Financial Results (Quarterly)
1．Results For FY2023 (Ended March 31,2024) Financial Results (Quarterly) ◼ Net sales in 4Q FY2023 remained flat from 3Q FY2023. ◼ Operating income in 4Q FY2023 declined from 3Q FY2023 due to inventory reduction and increase in DX expenses. Net Sales Operating Income (excluding temporary factors) Ope
Slide 6: Net Sales (by Main Application)
1．Results For FY2023 (Ended March 31,2024) Net Sales (by Main Application) ◼ Net sales for automotive electronics in 4Q FY2023 increased from 3Q FY2023. ◼ Net sales for mobile communications in 4Q FY2023 declined due to seasonal factors. ◼ As for industrial equipment, sales for base stations and dat
Slide 7: Operating Income: Analysis of Changes from FY2022
1．Results For FY2023 (Ended March 31,2024) Operating Income: Analysis of Changes from FY2022 ◼ Profits declined due to decline in net sales, reduction in utilization rate, and increased investment in human resources/DX. -¥2.82 billion (Billion yen) Exchange Change in Investment rate sales fluctuatio
Slide 8: Inventory
1．Results For FY2023 (Ended March 31,2024) Inventory ◼ Inventories were reduced to appropriate levels. (Billion yen) 16.0 3.1 3.1 14.0 3.0 2.8 2.7 2.7 2.6 Month 12.0 Calculated based on inventory at the 10.0 end of term and quarterly net sales. 8.0 13.9 6.0 12.8 11.7 11.5 11.0 10.1 10.4 4.0 2.0 0.0
Slide 9: Financial Position
1．Results For FY2023 (Ended March 31,2024) Financial Position ◼ Loans and borrowings repayment and profit accumulation lifted the shareholders’ equity ratio up to 41.4% as of the end of March 2024. Received ¥5.0 billion Raised approx. ¥4.0 billion by the investment through public offering carried ou
Slide 10: Contents
Contents 1. Results For FY2023 (Ended March 31, 2024) 2. Financial Forecast for FY2024 (Ending March 31, 2025) 3. Toward Vision 2030 Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 10
Slide 11: Financial Forecast
2．Financial Forecast for FY2024 (Ending March 31, 2025) Financial Forecast ◼ The full-year FY2024 net sales forecast is ¥52.5 billion (growth rate of 4% YoY). ◼ YoY profit increase was slight due to increased investment necessary for sustainable future growth (human resources, DX, etc.) ⇒ Forecast f
Slide 12: Net Sales Forecast by Application
2．Financial Forecast for FY2024 (Ending March 31, 2025) Net Sales Forecast by Application ◼ Automotive electronics and mobile communications are expected to drive net sales growth. Net sales Factors of increase/decrease (Billion yen) FY2023 FY2024 YoY Automotive Expected to increase due to higher de
Slide 13: Operating Income: Analysis of Changes from FY2023
2．Financial Forecast for FY2024 (Ending March 31, 2025) Operating Income: Analysis of Changes from FY2023 ◼ Advance investment in human resources, DX, etc. to improve the company's productivity over the medium to long term. ◼ Therefore, profits earned from net sales increases, etc., will be used mai
Slide 14: Capital Investment
2．Financial Forecast for FY2024 (Ending March 31, 2025) Capital Investment ◼ DX investment and infrastructure investment (introduction of high-speed lines, etc.) over 3 years increase compared to Medium-Term Management Plan. (Billion yen) 14.0 12.7 System investment, etc. 12.0 11.5 3.9 1.0 10.0 3.0
Slide 15: Management Targets of Medium-Term Management Plan
2．Financial Forecast for FY2024 (Ending March 31, 2025) Management Targets of Medium-Term Management Plan ◼ Shareholder’s equity ratio achieved one year ahead of schedule. Net sales, operating income ratio, ROIC expected to fall short. 13.6% 10.0% 8.6% 8.6% 11.0% Operating income ratio (excludes -1.
Slide 16: Revision of Dividend Policy
2．Financial Forecast for FY2024 (Ending March 31, 2025) Revision of Dividend Policy ■Dividend Policy (Before the Revision) As we position the return of profits to shareholders as one of the important managerial policies, we have been paying dividends based on the principle of maintaining stable divi
Slide 17: Shareholder Return
2．Financial Forecast for FY2024 (Ending March 31, 2025) Shareholder Return ■The annual dividend for FY2023 is planned to be increased by 5 yen, resulting in a total of 25 yen per share. ■The outlook for FY2024 is a ¥30 annual dividend with a ¥5 increase. 15 Fiscal year end 15 dividend 10 2nd quarter
Slide 18: Contents
Contents 1. Results For FY2023 (Ended March 31, 2024) 2. Financial Forecast for FY2024 (Ending March 31, 2025) 3. Toward Vision 2030 Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 18
Slide 19: Vision2030 Structure
3. Toward Vision2030 Vision2030 Structure Vi s i o n 2 0 3 0 Creating the Future of Digital Society through Frequencies Human Resource Societal Value Economic Value Value Support digital Explore new domains and Nurture human technology to realize a become a 6G top runner resources to bring society w
Slide 20: Our Strengths for Vision2030
3. Toward Vision2030 Our Strengths for Vision2030 ◼ For over 75 years since the company was founded, we have continued to drive growth in the crystal device market. ◼ In automotive electronics products, our quality- ◼ In mobile communication products, we differentiate focused products have a global
Slide 21: Image of Net Sales for FY2030
3. Toward Vision2030 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 Industrial equipment, consumer and new (Billion yen) 20.0% businesses, new areas (post-5G, 120 medicine, space, semiconductor) 100.0 Need to
Slide 22: Automotive Electronics ①
3. Toward Vision2030 Automotive Electronics ① ◼ Autonomous driving levels 1 and 2 (driver + ADAS) will continue until 2030. ⇒ADAS demand will steadily grow. ⇒Number of crystal devices equipped per vehicle is expected to grow at a strong pace. Source: NDK estimates based on survey company forecast da
Slide 23: Automotive Electronics ②
3. Toward Vision2030 Automotive Electronics ② ◼ EVs are expected to account for more than 50% of the total by 2030. ⇒Strengthening sales to new Chinese manufacturers that are rapidly growing is an issue. ⇒Assert the superiority of our products in terms of the quality required for automotive applicat
Slide 24: Mobile Communications
3. Toward Vision2030 Mobile Communications ◼ Ratio of high-frequency products is expected to increase together with the penetration of 5G smartphones. ⇒Expanded sales opportunity for our photolithography products. Source: NDK estimates based on survey company forecast data Expected number of smartph
Slide 25: Industrial Equipment
3. Toward Vision2030 Industrial Equipment ◼ Seeking sales opportunities in compact OCXOs for the full-scale launch of RU base stations. ◼ Expected increase in demand for crystal oscillators used in the optical transmission modules of data centers due to the spread of AI. ⇒Increasing our share in the
Slide 26: Other Areas
3. Toward Vision2030 Other Areas Issues in business expansion ◼ How to expand sales at IoT and consumer applications market. ◼ How to expand sales of optical products for pro-specification cameras. ◼ How to expand sales of diagnostic ultrasound imaging systems for medical use. ◼ How to expand sales
Slide 27: Example of new area (QCM Sensor)
3. Toward Vision2030 Example of new area(QCM Sensor) Semiconductor manufacturing Developing space business with JAXA process monitoring Early detection Process development Effective in process of abnormalities ! optimization ! condition setting ! Thin Film Etching Resist Stripping Deposition Thin Fi
Slide 28: Profitability Improvement by 2030
3. Toward Vision2030 Profitability Improvement by 2030 ◼ Aiming to build a system that curtail increases in fixed costs even if net sales increase. ⇒Productivity improvement through the active utilization of DX and the shift to high-speed lines on existing production lines etc. Operating income rati
Slide 29: Pursuit of Social Value (Climate Change Measures)
3. Toward Vision2030 Pursuit of Social Value (Climate Change Measures) Promote initiatives aimed at carbon neutrality by 2050 (Targets: 2030: -46% (compared to FY2013), 2050: carbon neutrality) FY2023 results ◼ Calculated the total GHG emissions for Scope 1, 2, 3 for the entire Group ◼ Started answe
Slide 30: Human development policies
3. Toward Vision2030 Pursuit of Human Resource Value Developing human resources to drive innovation in the world and the future Human development policies • Secure human resources of diverse attributes with diverse capabilities • Build a system in which individual employees independently think about
Slide 31: Pursuit of Human Resource Value
3. Toward Vision2030 Pursuit of Human Resource Value Culture Reform and Reform framework for work motivation Culture reform campaign Reform framework for work motivation Launch a poster campaign for the purpose of Activities for the purpose of creating a improving NDK culture and creating a culture
Slide 32: Final Comments
Final Comments ◼ Advance strengthening of the corporate constitution by improving productivity aimed at sustainable growth. Current location Global financial crisis Preparation period for Toward sustainable Slump in business performance COVID-19 sustainable growth growth FY2010 FY2015 FY2020 FY2022
Slide 33: Thank you everyone for your time
T h a n k yo u e v e r yo n e f o r yo u r t i m e May 23, 2024 Nihon Dempa Kogyo Co., Ltd. Copyright © 2024 Nihon Dempa Kogyo All Rights Reserved 33
Slide 34: Net Sales Forecast by Application (by half year)
Appendix Net Sales Forecast by Application (by half year) FY2023 FY2024Forecast (Billion yen) 1H 2H Full Year 1H 2H Full Year Automotive 14.0 14.3 28.3 14.8 15.2 29.9 electronics Mobile 4.1 4.6 8.7 5.0 5.2 10.3 communications IoT 1.2 1.2 2.4 1.2 1.2 2.4 Industrial 1.4 1.6 3.0 1.2 1.3 2.5 equipment C