Daishinku Corp., · TSE:6962

Daishinku Corp — FY2023 Earnings Presentation

30 slides from Daishinku Corp's earnings presentation, May 29, 2023

  1. Slide 1: Financial Results Briefing

    Financial Results Briefing Financial Results for the Year Ended March 31, 2023 May 29, 2023 DAISHINKU CORP. (Code: 6962) President, Minoru Iizuka

  2. Slide 2: Results for the Year Ended March 31, 2023

    Results for the Year Ended March 31, 2023 Copyright © DAISHINKU CORP. All rights reserved. 2/30

  3. Slide 3: Performance Report for the FY2023

    Performance Report for the FY2023 Lower revenues and profits YoY Change Unit: Million yen FY2022 FY2023 Increase/ Decrease Rate of Change Net sales 41,306 38,430 (2,876) ↓ (7.0%) Operating income 5,194 4,210 (984) ↓ (19.0%) Ordinary income 6,547 5,106 (1,441) ↓ (22.0%) Profit attributable to owners

  4. Slide 4: Sales by Application (YoY Change)

    Sales by Application (YoY Change) IE: Industrial Equipment CE: Consumer Equipment AE: Automotive Electronics TC: Telecommunications FY2022 FY2023 Sluggish demand for FA/robot 41.3 Net sales 38.4 IE applications since 2Q due to billion yen change rate billion yen restrained capital expenditures 14% 1

  5. Slide 5: Operating Income Analysis (YoY Change)

    Operating Income Analysis (YoY Change) Unit: Million yen (984) Operating Income 5,194 Operating Income 4,210 Copyright © DAISHINKU CORP. All rights reserved. 5/30

  6. Slide 6: Quarterly Performance Report for the FY2023

    Quarterly Performance Report for the FY2023 Lower revenues and profits (Operating income) FY2023 QoQ Change Unit: Million yen Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Increase/Decrease Net sales 10,283 10,009 9313 8,825 (488) ↓ Operating income 1,625 1,185 785 615 (170) ↓ Ordinary income 3,019 1,732

  7. Slide 7: Sales by Application (QoQ Change)

    Sales by Application (QoQ Change) IE: Industrial Equipment CE: Consumer Equipment AE: Automotive Electronics TC: Telecommunications Oct.-Dec. Jan.-Mar. Continued restraint in capital IE expenditures and adjustment 9.31 Net sales 8.82 of parts inventory billion yen change rate billion yen 15% 15% The

  8. Slide 8: Operating Income Analysis (QoQ Change)

    Operating Income Analysis (QoQ Change) Unit: Million yen FY2023 FY2023 Oct.-Dec. (170) Jan.-Mar. Operating Income 785 Operating Income 615 Copyright © DAISHINKU CORP. All rights reserved. 8/30

  9. Slide 9: Capital Expenditures / Depreciation / R&D Expenses

    Capital Expenditures / Depreciation / R&D Expenses FY2022 FY2023 Unit:Million yen FY2022 FY2023 YoY Change Capital Expenditures 7,116 5,913 (1,203) Depreciation 3,494 3,993 499 R&D Expenses 2,171 2,205 34 Capital Depreciation R&D Expenses Expenditures Copyright © DAISHINKU CORP. All rights reserved.

  10. Slide 10: Guidance for the Year Ending March 31, 2024

    Guidance for the Year Ending March 31, 2024 Copyright © DAISHINKU CORP. All rights reserved. 10/30

  11. Slide 11: Full Year Forecast for the FY2024

    Full Year Forecast for the FY2024 YoY Change Unit: Million yen FY2023 FY2024 Increase/Decrease Rate of Change Net sales 38,430 36,000 (2,430) ↓ (6.3%) Operating income 4,210 1,500 (2,710) ↓ (64.4%) Ordinary income 5,106 1,200 (3,906) ↓ (76.5%) Profit attributable to owners of parent 3,208 650 (2,558

  12. Slide 12: Sales by Application (Full Year Forecast for the FY2024)

    Sales by Application (Full Year Forecast for the FY2024) IE: Industrial Equipment CE: Consumer Equipment AE: Automotive Electronics TC: Telecommunications Down 11% year-on-year due to FY2023 FY2024 continued adjustment of parts 38.4 Net sales 36.0 IE inventory in addition to the impact billion yen c

  13. Slide 13: Operating Income Analysis (Full Year Forecast)

    Operating Income Analysis (Full Year Forecast) Unit: Million yen (2,710) Operating Income 4,210 Operating Income 1,500 Copyright © DAISHINKU CORP. All rights reserved. 13/30

  14. Slide 14: Outlook for Existing Businesses

    Outlook for Existing Businesses Copyright © DAISHINKU CORP. All rights reserved. 14/30

  15. Slide 15: Outlook for Existing Businesses I: Telecommunications/Automotive Electronics Market

    Outlook for Existing Businesses I Telecommunications Market/Automotive Electronics Market 🏁 = Record high net sales TC market 🏁 Higher frequencies will be demanded for the TC specifications of crystal devices required for next-generation communications, although customer inventory adjustments…

  16. Slide 16: Forecast of New Car Units Sold and Crystal Product Value

    Forecast of New Car Units Sold and Crystal Product Value The growth rate in CAGR for electric vehicles and ADAS/cameras is higher than that of the overall automotive electronics market. （MM） <Forecast of new car units sold> <Forecast of crystal product value> 140 70.0% 120 60.0% CAGR (Compound Annua

  17. Slide 17: Outlook for Existing Businesses II: Consumer Equipment Market/Taiwan Segment

    Outlook for Existing Businesses II Consumer Equipment Market/Taiwan Segment Sales in the consumer equipment market and the Taiwan segment tend to be almost the same. (Net sales) CE market/Taiwan Segment The Taiwan segment is the largest manufacturing base for PCs and peripherals. The market has been

  18. Slide 18: Trends in Consumer Equipment/Industrial Equipment Applications

    Trends in Consumer Equipment/Industrial Equipment Applications Wearable devices SSDs FA/Robots * According to an in-house survey: With the year 2022 set at 100 Copyright © DAISHINKU CORP. All rights reserved. 18/30

  19. Slide 19: Trend for Higher Frequency

    Trend for Higher Frequency Copyright © DAISHINKU CORP. All rights reserved. 19/30

  20. Slide 20: Why Does The Market Need High Frequencies?

    Why Does The Market Need High Frequencies? The advancement of high-speed, large-capacity communications is accelerating to support business clouds and remote work in addition to video distribution. Photolithography technology is essential. More susceptible to noise Noise is generated Impact of noise

  21. Slide 21: Trends in Net Sales of Photolithography Products

    Trends in Net Sales of Photolithography Products Meeting the demand for high frequency and low power consumption, such as WiFi/5G/ADAS/clock functions Sales of photolithography products Ratio of photolithography products 21% 18% 18% 12% 3% 4% 2% FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Copyr

  22. Slide 22: Five-year Trends in Capital Expenditures

    Five-year Trends in Capital Expenditures Unit: Billion yen Three-year cumulative capital expenditures Plan: 20 billion yen or more Estimate: 19 billion yen – Breakdown of three-year capital expenditures - DX/environment, etc. 2.4 billion Existing products Photolithography-related - Capacity enhancem

  23. Slide 23: Original Competitiveness – Larger Wafer Size

    Original Competitiveness – Larger Wafer Size Larger photolithography wafer 4inch wafer 6inch wafer 8inch wafer Number of Number of Number of - Increased producible chips producible chips producible chips number of About 5,000 pcs About 10,000 pcs About 20,000 pcs producible crystal chips Existing pr

  24. Slide 24: Image of Profits 1st Step

    Image of Profits 1st Step New record high profits Expansion of photolithography products (improved marginal Record high profit ratio) profits Market recovery Increasing the size of crystal wafers FY2022 FY2023 列3 列4 FY2025～ 列1 列2 Copyright © DAISHINKU CORP. All rights reserved. 24/30

  25. Slide 25: Breaking Free of Market Dependence

    Breaking Free of Market Dependence Copyright © DAISHINKU CORP. All rights reserved. 25/30

  26. Slide 26: Realization of the Sales Plan for the Arkh Series

    Realization of the Sales Plan for the Arkh Series Aiming for a full-fledged contribution to sales in the fiscal year ending March 31, 2026 * Benefits of built-in ICs: Downsizing, reduction of substrate stray capacitance, etc. Copyright © DAISHINKU CORP. All rights reserved. 26/30

  27. Slide 27: Lineup of the Arkh Series

    Lineup of the Arkh Series Crystal Crystal resonators resonators with thermistor Strength of the Arkh series Higher frequency ×2 ×2 ×2 76.8MHz ➡ 153.6MHz ➡ 307.2MHz ➡ … Crystal <Built-in IC image> oscillators Molded oscillator Molded RTC Strength of the molded type Flexibility in size 7050size, 5032s

  28. Slide 28: New Crystal <Production of Zeolite>

    New Crystal <Production of Zeolite> Zeolite ✕ Same disposal hydrothermal Core Technology synthesis Growth of synthetic Conventional Waste liquid method as for quartz crystals containing quartz quartz crystals crystals Alkaline Point 1: Reuse of waste liquid solution Producing a functional material f

  29. Slide 29: Image of Profits 2nd Step

    Image of Profits 2nd Step Arkh strategy Acceleration of growth rate Niche strategy New crystals Expansion of photolithography Record high products (improved marginal profit profit ratio) Market recovery Increasing the size of crystal wafers FY2022 FY2023 列3 列5 ～ FY2025 列4 列1 列2 Copyright © DAISHINKU

  30. Slide 30: Forward-looking statements disclaimer

    Forward-looking statements, such as performance forecasts for this fiscal year, are calculated based on information currently available and contain uncertainties. Actual performance may differ significantly from forward-looking statements due to changes in business conditions and other factors. In a

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