Slide 1: Aims to Maximize Operating Profit by Optimizing Output per Unit Area and Per Person
DAISHINKU CORP. Aims to Maximize Operating Profit by Optimizing Output per Unit Area and Per Person The following is a transcription of DAISHINKU CORP.'s financial results presentation for the fiscal year ended March 31, 2024, which was given on May 21, 2024. [Speakers] Minoru Iizuka, President and
Slide 2: Performance Report for the FY2024
Performance Report for the FY2024 Minoru Iizuka (hereafter, Iizuka): I am Minoru Iizuka, President and CEO of DAISHINKU CORP. Thank you for taking the time to attend our financial results briefing today. Let's proceed with the presentation. The full‐year results for FY2024 showed an increase in sale
Slide 3: Sales by Market (YoY Change)
Sales by Market (YoY Change) Here are the sales results by market. For industrial equipment market, demand declined due to factors such as restrained capital investment in FA/robotics, resulting in a 15% decrease YoY. For consumer equipment market, although the bottom was reached from January to Mar
Slide 4: Operating Profit Analysis (YoY Change)
Operating Profit Analysis (YoY Change) This is the operating profit analysis. Compared to the operating profit of JPY4.21 billion in FY2023, price fluctuations including FX rate impact resulted in a JPY2.6 billion decrease. While changes in the mix and increases in sales volume had a positive impact
Slide 5: Quarterly Performance Report for the FY2024
Quarterly Performance Report for the FY2024 These are the quarterly results. In Q4, sales decreased but profit increased. Net sales were JPY9.658 billion, and the reportable profit items from operating profit and below increased compared to the previous quarter due to forex effects, etc. Operating p
Slide 6: Sales by Market (QoQ Change)
Sales by Market (QoQ Change) Here are the sales results by market. For industrial equipment market, demand continued to slump, resulting in a 17% decrease compared to the previous quarter. For consumer equipment and telecommunications market, there were impacts from the Chinese New Year, leading to
Slide 7: Operating Profit Analysis (QoQ Change)
Operating Profit Analysis (QoQ Change) This is the analysis of operating profit changes compared to the previous quarter. Price fluctuations, including FX rate impact, were minimal. Operational adjustments continued, and with the decrease in sales volume, the change in marginal profit was a decrease
Slide 8: Inventory Trends
Inventory Trends Here are the inventory trends. Due to operational adjustments in FY2024, inventory, including FX rate impact of JPY980 million, resulted in JPY16.4 billion. Considering the forex level of FY2021, inventory can be estimated at JPY14.5 billion, which is nearly the same as FY2021. We b
Slide 9: Full-Year Forecast for FY2025
Full‐Year Forecast for FY2025 Here is the full year forecast for FY2025. We plan for net sales of JPY40 billion, operating profit of JPY1.5 billion, ordinary profit of JPY1 billion, and profit attributable to owners of parent of JPY500 million. Inventory levels are expected to remain the same as the
Slide 10: Sales by Market (Full Year Forecast for the FY2025)
Sales by Market (Full Year Forecast for the FY2025) Here is the sales plan by market. For industrial equipment market, we plan a 10% decrease YoY due to ongoing inventory adjustments of parts. For consumer equipment market, we anticipate a gradual recovery centered on PCs and SSDs, with a 1% increas
Slide 11: Capital Expenditures / Depreciation / R&D Expenses
Capital Expenditures / Depreciation / R&D Expenses Regarding capital expenditures, we plan JPY7.3 billion for FY2025, with depreciation costs of JPY4.5 billion and R&D expenses of JPY2.5 billion. The breakdown of capital investment is shown in the bar graph on the slide. This August, we will complet
Slide 12: Operating Profit Analysis (Full-Year Forecast)
Operating Profit Analysis (Full‐Year Forecast) This is the operating profit analysis. For FY2024, operating profit was JPY2.135 billion. We anticipate a JPY2.24 billion increase in marginal profit due to increased sales and production volumes. However, we expect a JPY2.07 billion decrease mainly due
Slide 13: 1st Medium-term — Addressing material issues
1st Medium‐term — Addressing material issues We are entering the second medium‐term management plan from FY2024, so let me explain its content. In the first medium‐term management plan, we focused on balancing stable supply and environmental initiatives. We worked on enlarging wafers, developing new
Slide 14: Business results in the 1st Medium-term
Business results in the 1st Medium‐term Here are the performance results of the first medium‐term management plan. Net sales in FY2022 started strong at JPY41.3 billion, exceeding the plan. However, due to changes in the market environment, net sales were JPY38.4 billion in FY2023 and JPY39.3 billio
Slide 15: Priority measures for the 2nd Medium-term
Priority measures for the 2nd Medium‐term These are the key policies of the second medium‐term management plan. We position the long‐term management plan as 10 years to change products, followed by the next 10 years as 10 years to change production in the next long‐term management plan. During the f
Slide 16: Toward growth based on stable supply and environmental initiatives
Toward growth based on stable supply and environmental initiatives We consider the second medium‐term management plan to be a stage of growth by stable supply and environmental initiatives. So far, we have focused on developing production methods and products aimed at maximizing output per unit area
Slide 17: Maximize output per unit area
Maximize output per unit area As mentioned before, if we continue producing the same products with the same methods, we would need more factories to handle the increasing volume of crystal devices. This would require more production personnel and increase CO2 emissions, which is a disadvantage. To c
Slide 18: Maximize output per person
Maximize output per person In the second medium‐term management plan, we also aim to maximize output per person. As mentioned earlier, our headquarters and plant is scheduled for completion in August this year. It will be our first carbon‐ neutral factory, incorporating heat pumps and 100% environme
Slide 19: Market trend of crystal devices
Market trend of crystal devices These are the market trends for crystal devices. The graph on the left shows quantity forecasts, while the one on the right shows monetary forecasts. The blue areas represent crystal resonators and the green areas represent crystal oscillators. As you can see, the val
Slide 20: Arkh.2G (development code name) Concept
Arkh.2G (development code name) Concept This is the concept for the development code name Arkh.2G. Traditional crystal oscillators require many production processes, as mentioned earlier. By replacing the internal crystal with the Arkh Series, we aim to increase output by 3 times to 5 times compared
Slide 21: Outlook of the 2nd Medium-term for the Arkh series
Outlook of the 2nd Medium‐term for the Arkh series In the first medium‐term management plan, we prepared various products, and this slide outlines the outlook for the second medium‐term management plan. First, we have the mold oscillator, which has been adopted by automotive manufacturers and is cur
Slide 22: 2nd Medium-term Sales Plan
2nd Medium‐term Sales Plan Here is the sales plan under the second medium‐term management plan. For FY2025, our 62nd fiscal year, we plan sales of JPY40 billion, JPY44 billion for FY2026, a JPY4 billion increase YoY. By FY2027, we plan to reach JPY53 billion, a JPY9 billion increase YoY. This plan m
Slide 23: Design-in base plan
Design‐in base plan The most crucial aspect of the second medium‐term management plan is the sales amount. Achieving the planned amount is key to the plan's success. In the first medium‐term management plan, the high ratio of sales to China was a point of reflection. Therefore, the target is to incr
Slide 24: Summary of measures for the 2nd Medium-term
Summary of measures for the 2nd Medium‐term As a summary of the measures in the second medium‐term management plan, the goal is to maximize operating income by maximizing output per unit area and per person. If output increases from 40 million units per month to 200 million units per month, manufact
Slide 25: 2nd Medium-term dividend policy
2nd Medium‐term dividend policy The dividend policy under the second medium‐term management plan will use DOE as an indicator. For this three‐year medium‐term management plan, we have set a minimum DOE of 2.8%. We aim for 3% in the final year. When announcing future medium‐term management plans, we
Slide 26: 2nd Medium-term numerical plan
2nd Medium‐term numerical plan Here is the summary of the numerical plan for the second medium‐term management plan. Net sales are projected to be JPY40 billion for FY2025, JPY44 billion for FY2026, and JPY53 billion for FY2027. Operating profit is planned to be JPY1.5 billion for FY2025, JPY3.2 bil
Slide 27: Q&A: Exchange Rate Impact, FY2025 Assumptions, and Future Operational Changes
Q&A: Exchange Rate Impact, FY2025 Assumptions, and Future Operational Changes Participant: I have a question about the operating profit variation analysis. How much was the positive impact from price fluctuations due to exchange rate changes in FY2024? Also, for FY2025, you are predicting a JPY2.07
Slide 28: Q&A: Features and Current Yield/Productivity of the Arkh Oscillator
Q&A: Features and Current Yield/Productivity of the Arkh Oscillator Participant: Regarding the Arkh.2G concept, you mentioned that replacing standard crystal blanks with Arkh oscillators would increase output by 3 times to 5 times. What exactly is different about the Arkh oscillator compared to stan
Slide 29: Q&A: Expected Sales Timing for Each Application
Q&A: Expected Sales Timing for Each Application Participant: In the previous briefing, you mentioned that telecommunications companies, smartphone manufacturers, and automotive manufacturers had visited to see the Arkh Series. Based on slide 22, I believe that the timing for sales in telecommunicati
Slide 30: Q&A: Comparison of Operating Profit Levels in Q4 FY2024 and Profit Plan for FY2025
Q&A: Comparison of Operating Profit Levels in Q4 FY2024 and Profit Plan for FY2025 Participant: I'd like to compare the operating profit level in Q4 FY2024 with the profit plan for FY2025. In Q4 FY2024, operating profit was about JPY600 million. There was a graph showing that price impacts were near
Slide 31: Q&A: Changes in Recent Order Status
Regarding other factors, as shown on slide 12, we expect depreciation to increase by about JPY550 million. This includes the start of operations for past investments and depreciation for the headquarters factory. Additionally, we anticipate an increase in personnel and labor costs by JPY250 million.
Slide 32: Q&A: Reasons first medium-term profits missed targets
Iizuka: The reason the profits in the first medium‐term management plan did not meet the targets boils down to missing our sales goals. The initial sales plan for the first year was JPY37 billion, but we achieved JPY41.2 billion, which was too high. As you know, there was a talk about a shortage of
Slide 33: Q&A: Sales Plan for FY2026 to FY2027
Q&A: Sales Plan for FY2026 to FY2027 Participant: Regarding the sales plan for FY2026 to FY2027 on slide 23, please give us a sense of the scale of sales that you expect to gain from future sales expansion, divided into organic growth and new products, including the “Arkh” series. How much will new
Slide 34: Q&A: Inventory Level Insights
Q&A: Inventory Level Insights Participant: Regarding inventory levels, you mentioned earlier that, excluding FX rate impact, the level is similar to FY2021 during the COVID‐19 pandemic. However, compared to the inventory turnover period shown in the previous medium‐term management plan, it seems lik