Slide 1: Results Briefing for the Second Quarter of Fiscal 2020 Ending March 2021
Securities ID code:6859 Results Briefing for the Second Quarter of Fiscal 2020 Ending March 2021 ESPEC CORP. November 26, 2020 1
Slide 2: Financial Result for the Second Quarter of Fiscal Ending March 2021
Financial Result for the Second Quarter of Fiscal Ending March 2021 Sales and profits both decreased year on year, reflecting the impact of curtailed investment due to the COVID-19 pandemic Year on Year Forecast Ratio Increased due to Equipment Decreased due to declines in all ■Orders-Received × bus
Slide 3: Summary of Profits and Losses
Summary of Profits and Losses (millions of yen) FY 2019 FY 2020 FY 2020 Year on Year Forecast Ratio 2Q Results 2Q Forecasts 2Q Results Orders-Received 23,463 16,500 16,957 -27.7% 2.8% Net sales 18,776 17,500 17,294 -7.9% -1.2% Cost of Net Sales 12,172 11,870 11,502 -5.5% -3.1% (1.7pt （1.3pt (Cost of
Slide 4: Performance by Segment
Performance by Segment (millions of yen) FY 2019 FY 2020 FY 2020 Forecast Segment Year on Year 2Q Results 2Q Forecasts 2Q Results Ratio Orders-Received 18,476 13,100 13,699 -25.9% 4.6% Equipment Net Sales 15,131 14,000 13,745 -9.2% -1.8% Business Operating Income 1,171 450 658 -43.8% 46.2% Orders-Re
Slide 5: Analysis of Operating Income Increase and Decrease Factor
Analysis of Operating Income Increase and Decrease Factor Equipment Business (millions of yen) Service Business Other Business expenses Research and development Commission fee -485 Travel expenses Other -183 75 -124 45 -74 34 1,387 -94 153 △１ -521 ※ -290 ※ 158 734 Increase and decrease Increase and
Slide 6: Statement of Assets and Liabilities
54,442 6 FY 2020 (millions of yen) 2Q Liabilities and equity -1,983 212 44 Net assets Noncurrent liabilities -3,018 Other current liabilities -290-1,001 Electronically recorded obligations-operating Notes and accounts payable-trade Statement of Assets and Liabilities FY 2019 57,461 54,442 FY 2020 2Q
Slide 7: Statement of Cash Flow
(millions of yen) 858 740 Capital increase due to new 7 consolidation Increase in funds Effect of exchange rate change 6 on cash and cash equivalents -1,100 Total financial cash flow -４３ Other -985 -1,057 Cash dividends paid Total investment cash flow 356 Other Purchase of property, -1,341 plant and
Slide 8: Equipment Business
Equipment Business (millions of yen) FY 2019 FY 2020 FY 2020 Year on Year Forecast Ratio 2Q Results 2Q Forecasts 2Q Results Orders-Received 18,476 13,100 13,699 -25.9% 4.6% Net Sales 15,131 14,000 13,745 -9.2% -1.8% Operating Income 1,171 450 658 -43.8% 46.2% [Profit ratio(%)] ［7.7%］ ［3.2%］ ［4.8%］ E
Slide 9: Service Business
Service Business (millions of yen) FY 2019 FY 2020 FY 2020 Year on Year Forecast Ratio 2Q Results 2Q Forecasts 2Q Results Orders-Received 3,242 2,900 2,879 -11.2% -0.7% Net Sales 3,075 2,600 2,592 -15.7% -0.3% Operating Income 280 -50 58 -79.3% ー [Profit ratio(%)] ［9.1%］ ［-1.9%］ ［2.2%］ After-sales S
Slide 10: Other Business
Other Business (millions of yen) FY 2019 FY 2020 FY 2020 Forecast Year on Year 2Q Results 2Q Forecasts 2Q Results Ratio Orders-Received 1,865 600 502 -73.1% -16.3% Net Sales 675 1,000 1,073 58.9% 7.3% Operating Income -65 16 0 ー ー [Profit ratio(%)] ［-9.7%］ ［1.5%］ Environmental Preservation, Plant Pr
Slide 11: Breakdown of Sales by Market
Breakdown of Sales by Market Non-consolidated (Equipment business) Other markets 100% 27 25 Automobile market 30 30 29 80% Flat panel display market 17 21 60% 20 19 23 Electronic device and equipment 4 market 7 4 3 2 Semiconductor market 40% 37 36 36 41 37 20% 18 10 10 7 8 0% FY2016 2Q FY2017 2Q FY2
Slide 12: Sales by Region
Sales by Region FY 2019 2Q FY 2020 2Q Overseas sales ratio： 44.4% Overseas sales ratio： 48.2% 2.5% 2.5% 13.7% 18.1% Taiwan 3.8% China Korea 4.2% FY 2019 FY 2020 2Q Europe&America 55.6% 51.8% 2Q 17.9% South East Asia Other 14.5% Japan 5.0% 6.3% 1.5% 2.6% Total: 18,776 million yen Total: 17,294 millio
Slide 13: Full-Year Forecasts for Fiscal 2020
Full-Year Forecasts for Fiscal 2020 While we see challenging conditions continuing, we will make it our top priority to win orders FY 2019 FY 2020 (millions of yen) Full year First half Revised forecast Results Results Second half Full year Year on Year Orders-received 43,571 16,957 18,043 35,000 -1
Slide 14: Second half Outlook for the Business Environment
Second half Outlook for the Business Environment ・Recovery expected in China, Taiwan, and Korea despite continuing challenging conditions ・Cutting-edge technology fields (5G, IoT, automated and electric vehicles) are expected to recover, although the economic slowdown will continue to have an impact
Slide 15: Segment Financial Forecasts
Segment Financial Forecasts FY 2019 FY 2020 (millions of yen) Full year First half Forecast Results Results Second half Full year Year on Year Orders-Received 34,682 13,699 14,001 27,700 -20.1% Equipment Net Sales 34,361 13,745 15,455 29,200 -15.0% Business Operating Income 3,041 658 570 1,228 -59.6
Slide 16: Efforts to Win Orders in the Second Half and Onward(1)
Efforts to Win Orders in the Second Half and Onward(1) Equipment Business <Cutting-edge technology fields> 5G, IoT, automated and electric vehicles Focus areas: Japan, China, Korea, Taiwan Initiatives: Win orders by strengthening customization Sales expansion through global marketing Area Initiative
Slide 17: Efforts to Win Orders in the Second Half and Onward(2)
Efforts to Win Orders in the Second Half and Onward(2) Commissioned testing business ・Strengthen customer contacts (web conferences, seminars, etc.) in cutting-edge technology fields ・Strengthen proposals for home-based online services where increased demand is expected New business ・Pharmaceutical
Slide 18: FY 2020 Dividend Forecast
FY 2020 Dividend Forecast Basic policy on profit distribution We recognize that passing on profits to our shareholders is a key priority and that raising corporate value on a lasting basis is fundamental to raising shareholder value. Dividends are decided taking into account sustainability and the d
Slide 19: Strengthen Management Foundation and Promote ESG
Strengthen Management Foundation and Promote ESG Under the corporate philosophy, THE ESPEC MIND, the Company is aiming for sustainable growth E （Environmental） (1)7th Mid-term Plan on the Environment (2)Contribute to reducing the environmental load through products (3)Promote biodiversity and natura
Slide 20: TOPICS (1)
ＴＯＰＩＣＳ(1) （November, 2020） （November, 2020） Rated 3 stars in Nikkei’s 4th Rated 3.5 stars in the Nikkei Smart Work Management Survey SDGs Management Survey 2020 A management survey comprised of Management survey comprised of four three categories―Human Resources, categories―SDGs Strategy and Economi
Slide 21: TOPICS (2)
ＴＯＰＩＣＳ(2) （November, 2020） （June, 2020） Ministry of Economy, Trade and Industry (METI) Ranked 163rd in the Nikkan Kogyo Shimbun’s Global Niche Top Companies Selection 100 COVID-19 Response Ranking for Fiscal 2020 (sponsored by the Ministry of Economy, Trade and Industry) ESPEC was selected as a winn
Slide 22: TOPICS (3)
ＴＯＰＩＣＳ (3) （August, 2020） （June, 2020） Installed large-scale testing Expanded Environmental Stress equipment in the Battery Safety Chamber AR Series Lineup Certification Center Launched four new models as rapid-rate Installed one of Japan’s largest temperature cycle temperature cycle type products,
Slide 23: Forward-looking statements and inquiries
These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f
Slide 24: Reference
Reference ESPEC CORP.
Slide 25: Company Profile
Company Profile Industry-leading manufacturer of environmental test chambers Name ESPEC CORP. Head Office 3-5-6, Tenjinbashi, Kita-ku, Osaka Represented By Masaaki Ishida Established July 25, 1947 Incorporated January 13, 1954 Paid-up Capital ¥6,895 Million Shares Issued 23,781,394 Shares Head offic
Slide 26: Global Network
会社概要 Global Network Consolidated Subsidiaries Global Network 12 companies 46 countries Business Facilities in Japan : 25 (Global 9 companies, Domestic Agencies in Japan : 46 Domestic 3 companies) 42 companies EUROPE U.S.A. ●ESPEC EUROPE GmbH ●ESPEC NORTH AMERICA, INC - ESPEC IKLIM KABINLERＩ SATIS VE
Slide 27: Summary of ESPEC Business (Per Market / Use)
Summary of ESPEC Business (Per Market / Use) Sales composition Main Products Market Use (FY2019) ・Temperature & humidity chamber ・Electronic component ・Thermal shock chamber and equipment market ・For R & D ・Bench-top type temperature & humidity chamber ・Automobile market ・For credibility Environment
Slide 28: History of Environmental Test
History of Environmental Test What is Environmental Test Test to analyze and evaluate effects of environmental factors such as temperature, humidity, pressure, and light on various industrial products like electronic components in order to ensure product quality. <1950s> <1970s–1990s> <Today> The en
Slide 29: Transition in Business
Transition in Business Expanding business based on the “environmental creation technology” refined during the course of developing environmental test chambers large scale integration Integrated 5G, IoT and circuit automated driving, Eco cars such as EVs, HVs, and PHVs surface mount package ＬＣＤ stora
Slide 30: [Equipment Business] Usage Case with Environmental Test Chambers
[Equipment Business] Usage Case with Environmental Test Chambers 30
Slide 31: [Equipment Business] Main New Products
[Equipment Business] Main New Products Release Date Name of product Features Expanded Environmental Stress Chamber ・Launched four new models as rapid-rate temperature cycle type products, Aug. 2020 AR Series Lineup bringing the total lineup to 32 models across the series ・Recreates transport environ
Slide 32: [Equipment Business] New Product Introduction (1)
[Equipment Business] New Product Introduction (1) （Released in Feb. 2020） （Released in Dec. 2019） ■Walk-In Type ■ Walk-In Type Temperature(&Humidity) Chamber Temperature(&Humidity) Chamber for High-Power Series for Drive-In Series <Features> <Features> ・Compliant with IEC International Standards and
Slide 33: [Equipment Business] New Product Introduction (2)
[Equipment Business] New Product Introduction (2) For the medical field （Released in Feb. 2020） For material field （Released in Dec. 2019） ■ Transportation Evaluation System ■ Thermal Air Test System ＜Features＞ ＜Features＞ ・Enables simultaneous recreation of ・Can be combined with various materials te
Slide 34: [Equipment Business] Examples of Products Delivered (1)
[Equipment Business] Examples of Products Delivered (1) (Delivered in July 2018) ■Delivery examples of temperature (& humidity) chambers, test chambers for use for building materials Uses Reproduce the environment inside apartments (temperature and humidity) and outdoors (weather such as rain, snow,
Slide 35: [Equipment Business] Examples of Products Delivered (2)
[Equipment Business] Examples of Products Delivered (2) (Delivered in March 2016) ■Smart System Research Facility, ■National Laboratory for advanced energy storage Fukushima Renewable Energy Institute, AIST technologies (NLAB), National Institute of Technology (Koriyama city, Fukushima) and Evaluati
Slide 36: [Equipment Business] Usage Case with Energy Device Equipment
[Equipment Business] Usage Case with Energy Device Equipment Charge-discharge Cycle Evaluation Equipment Equipment for ensuring the reliability and safety of lithium-ion secondary batteries for next-generation vehicles (e.g., hybrid and electric vehicles) socket test system Secondary battery Batteri
Slide 37: [Equipment Business] Usage Case with Semiconductor Equipment
[Equipment Business] Usage Case with Semiconductor Equipment Screening Eliminate defective products to maintain initial-period quality at the final inspection stage of semiconductor device manufacturing Semiconductors × Heat load × Burn-in chamber Elimination of latent early failures Reliability Eva
Slide 38: [Service Business]
[Service Business] After–sales Service and Engineering Preventive maintenance of products, maintenance service, and the upgrading/improvement and installation/relocation of products ■ Speedy response via one of the most extensive networks in Japan ■ Launching new services by utilizing the network fu
Slide 39: [Service Business]
[Service Business] May 2020 start of “Home-based online service” Support continuity of customers’ development operations When using ESPEC products When using commissioned testing center Operate equipment and monitor samples All testing operations performed on behalf from home of customer, from start
Slide 40: [Service Business]
[Service Business] Realization of 100% green electricity for commissioned testing services at Kariya Test Center In January 2020, we became the first commissioned testing facility to convert to green electricity using a green electricity certificate.* We expect to reduce annual CO2 emissions by appr
Slide 41: [Service Business]
[Service Business] Renovated the Toyota Test Center World’s first First testing facility in Japan to address Battery Safety Certification Center the German Automotive Manufacturer compliant with United Nations regulations Testing Standards Providing a one-stop service to support the implementation S
Slide 42: [Other Business]
[Other Business] Environmental Preservation ■Reforestation (Tree planting) Recovery of local forest by selecting species and planting out seedlings using potential natural vegetation data. ■Waterfront biotope restoration Reconstruction of natural environment, １ development of vegetative revetments,
Slide 43: [Other Business]
[Other Business] Produced a high value-added vegetables using deep-seawater At a plant factory near Haneda Airport, production and sales of vegetables high in minerals with the use of deep sea water. Interior of the plant factory and Factory-produced vegetables ”mineraleaf” 43
Slide 44: [Other Business] Examples of Products Delivered
[Other Business]Examples of Products Delivered (Delivered in March 2016) ■Arid Land Research Center, Tottori University Products delivered: Experimental System for Analyzing Responses of Dryland plants to Climate Changes(2 units) (Simulates the climates of arid lands, including high temperature, low
Slide 45: Strengthen Technology Development Capability
Strengthen Technology Development Capability (New technology development building introduction) Objective ：Strengthen technology development capabilities and promote preservation of biodiversity by encouraging open innovation Concepts : “Open innovation,” “Open communication,” Rooftop green space us
Slide 46: ESPEC Identity Corporate Philosophy
ESPEC Identity Corporate Philosophy Our important values that have been passed on since our inception “THE ESPEC MIND” （Excerpt） To engage in a higher level of value exchange The Origin as a public institution Provide more certain Seikankyo (living environment) via Mission environmental creation tec
Slide 47: ESPEC Business and SDGs
ESPEC Business and SDGs Equipment Business Service Business Contribute to the development of cutting-edge technologies through the supply of products and services that harness “Environmental Creation Technology” ・Supply products and services that contribute to the development of cutting-edge technol
Slide 48: ESPEC Business and SDGs
ESPEC Business and SDGs Environmental （E） ・Contribute to global warming mitigation ・Reduce environmental impact ・Eco-site and eco-operation ・Prevent pollution ・Preserve biodiversity Social （S） ・Improve customer satisfaction and ensure product safety ・Supply chain management ・Respect human rights and
Slide 49: Initiatives tackling environmental problems
Initiatives tackling environmental problems Environmental management in line with the Mid-term Plan on the Environment Aim to contribute to the realization of a sustainable society through business activities Currently we are implementing the 7th Mid-term Plan on the Environment (planned implementat
Slide 50: Initiatives tackling environmental problems
Initiatives tackling environmental problems （March 2018） Designated as affiliated businesses of the Kebara Forest Creation Program: Creating a Mountain Full of Treasures—The Kyoto Model Forest Project, and The Japan Committee for the United Nations Decade on Biodiversity ・The Kebara Forest Creation
Slide 51: To a company where employees can be more active
To a company where employees can be more active Employee Education System Initiatives to promote women's success Enhancement ・Implement a Global Trainee Program aimed at developing human resources who are capable of working in international settings ・Enhance the education program to support From the
Slide 52: Quality is more than a word
Quality is more than a word ESOEC ESPEC CORP.