Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — Q1 2020 Earnings Presentation
21 slides from Nissha Co.ltd's earnings presentation, May 13, 2020
Slide 1: Financial Results for FY2020.12 Q1
Financial Results for FY2020.12 Q1 Ended March 31, 2020 May 13, 2020 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Agenda
Agenda Q1 financial result and Q2 forecast Progress of Measures to Strengthen Profitability (the Call for Voluntary Retirements) COVID-19 impacts and responses H2 forecast CONFIDENTIAL AND PROPRIETARY 2
Slide 3: Financial result highlights
Financial result highlights FY2020.12 Q1 Result（IFRS） Increased both in net sales and operating profit YoY. Impact by COVID- 19 was limited. (1USD=JPY108） Net sales 39.4 billion yen, Operating profit 1.0 billion yen, Profit before tax 1.0 billion yen, Profit attributable to owners of parent 0.8
Slide 4: FY2020.12 Q1 Result
FY2020.12 Q1 Result Increased both in Net sales and Operation profit YoY (turn positive) Steady demand for Devices with cost improvement (Millions of JPY) FY2019.12 FY2020.12 Jan.-Mar. (Q1) Jan.-Mar. (Q1) YoY Results Results IFRS IFRS Net sales 36,422 39,474 +8.4% Industrial Materials 11,515 11,946
Slide 5: Industrial Materials
Industrial Materials Q1 Acquisition for Sustainable Packaging Materials (metallized paper) Results was completed (Eurofoil). Impact of COVID-19 was limited. Q2 Due to COVID-19, demand for automotive is anticipated to decline sharply. Forecast Demand for Sustainable Packaging Materials (metal
Slide 6: Devices
Devices Q1 Demand for smartphones and tablets leveled out and progressed steadily. Results Reduced variable labor costs against demand decreasing. Q2 Demand for smartphones and tablets is expected to increase YoY. Forecast Demand for portable game players and industrial equipment (logistics
Slide 7: Medical Technologies
Medical Technologies Q1 Demand for Medical devices progressed steadily. Results Demand for business media for commercial facilities was a bit weaker. Due to COVID-19, demand for business media is anticipated to decline Q2 sharply. Forecast Due to COVID-19, demand for medical consumable produ
Slide 8: Information and Communication
Information and Communication Q1 Impact of COVID-19 was limited. Results Q2 Due to COVID-19, demand for exhibition catalogs is Forecast anticipated to decline. (Millions of JPY) Net sales trend by application ■Others 3,000 ■Publication printing (by quarter) ■Commercial printing 2,354 1,977 1,947
Slide 9: New Business Development (for DDS)
New Business Development (for DDS) Additional investment to Sparsha Pharma USA, Inc. (US) for an equity method affiliate Additional investment in April as Sparsha Pharma USA, Inc development milestone progresses Base California, USA Nissha’s ownership ratio becomes 20.2%. Employee 11 Aim for 2
Slide 10: Progress of Measures to Strengthen Profitability (the Call for Voluntary Retirements)
Progress of Measures to Strengthen Profitability (the Call for Voluntary Retirements) CONFIDENTIAL AND PROPRIETARY 10
Slide 11: Leverage Measures to Strengthen Profitability in 2020 H1, improve profitability in 2020 H2
Slide from Feb. 14, 2020 Presentation Leverage Measures to Strengthen Profitability in 2020 H1, improve profitability in 2020 H2 2019 (Result) 2020 (Forecast) 2021 (Image) 120,000 IT：non-IT=45:55 IT：non-IT=35:65 30% 25% （Millions of JPY) 80,000 IT 20% IT IT IT 15% 40,000 Non 10% Non Non -IT Non -IT
Slide 12: Result of the Call for Voluntary Retirements
Result of the Call for Voluntary Retirements Overview of the call Number of applicants: Approximately 250, mainly full-time employees in the Company and its domestic subsidiaries. Application period: From April 28, 2020 to May 15, 2020 Retirement date: June 30, 2020 Result (Application deadl
Slide 13: COVID-19 impacts and responses
COVID-19 impacts and responses CONFIDENTIAL AND PROPRIETARY 13
Slide 14: Responses to COVID-19
Responses to COVID-19 Notifications and Prohibition of non-essential movement between bases and business travels in Japan instructions to employees Prohibition of overseas business travels Working from home in principle except production Promotion of “working from home” Implementation rate 9
Slide 15: Contribution to society
Contribution to society All-hands operation of Nissha Group Start of sales for medical face shields Manufacturing and sale through our global network Product name (domestic): MeSHIELD TM Product name (in US and Europe): LATITUDE TM Producing equipment "precision nozzle" for non-woven fabri
Slide 16: Operation status of production bases
Operation status of production bases Business unit Products Devices Film-based touch sensor Japan: Active with steady demand Industrial Decoration Japan: Active, but lower demand Materials Asia (China, Malaysia): Temporarily suspended, but already resumed North and Central America: Active, but lower
Slide 17: Demand outlook for H2 (compared to previous forecast)
Demand outlook for H2 (compared to previous forecast) Our business portfolio diversification absorbs the impact of COVID-19 Business unit Products Major market Devices Film-based Smartphones Demand is anticipated to decline from touch sensor the initial forecast due to delay in production schedule T
Slide 18: FY2020.12 H1/Full-year Forecast
FY2020.12 H1/Full-year Forecast H1 revised upward, full-year remains the same （Millions of JPY) FY2020.12 full year FY2020.12 H1 FY2020.12 H1 （Jan.-Dec.） （Jan.-Jun.） （Jan.-Jun.） Forecast Previous forecast Revised forecast ✔ (unchanged) Net sales 75,000 77,000 166,000 Industrial Materials 25,500 23,6
Slide 19: Financing, investment plan
Financing, investment plan Financing Loans from banks: Increased borrowing capacity for working capital (arranged in FY2019) Reserved corporate bond issue limit (30.0 billion JPY) Planning for sales of strategically held shares (approx. 5.0 billion JPY) Investment plan M&A: Decreased to 4.5
Slide 20: Reference: Capital investment, Depreciation and amortization, M&A investment, R&D
Reference: Capital investment, Depreciation and amortization, M&A investment, R&D （Millions of JPY) FY2020 Q1 (Jan.-Mar.) Results Capital investment 1,435 Depreciation and 2,058 amortization M&A investment 1,431 R&D 671 CONFIDENTIAL AND PROPRIETARY 20
Slide 21: This document contains confidential information and all rights belong to Nissha
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