Slide 1: Financial Results for FY2017.12 and the Medium-term Business Plan
Financial Results for FY2017.12 and the Medium-term Business Plan February 14, 2018 NISSHA Co., Ltd. President and CEO Junya Suzuki
Slide 2: Highlights
Highlights FY2017.12 (9 months) Results Net Sales reached a record high (1$=￥111) Net Sales 159.5 billion yen, Operating Profit 6.2 billion yen, Ordinary Profit 7.5 billion yen, Net Profit 6.7 billion yen Devices: Advance cost occurred in the first half, but Operating Profit exceeded 10% in Oc
Slide 3: FY2017.12 (9 months) Results
FY2017.12 (9 months) Results Net Sales reached a record high (Millions of Yen) FY2017.3 FY2017.12 Q3 accumulated (Apr.-Dec.) (Apr.-Dec.) Results YOY Results Net Sales 81,839 159,518 ＋94.9% Industrial Materials 35,845 37,283 +4.0% Devices 33,957 97,206 +186.3% Life Innovation 1,277 14,081 +1002.7%* I
Slide 4: FY2017.12 Oct.-Dec. Results
FY2017.12 Oct.-Dec. Results The OPM of Devices exceeded target of 10% (Millions of Yen) FY2017.3 FY2017.12 FY2017.12 Oct.-Dec. Jul.-Sep. Oct.-Dec. Results Results Results YoY QoQ Net Sales 30,191 57,893 64,503 +113.6% +11.4% Industrial Materials 11,361 12,309 13,088 +15.2% +6.3% Devices 13,508 37,61
Slide 5: The Sixth Medium-term Business Plan
The Sixth Medium-term Business Plan (FY2018.12-FY2020.12) “FY2017.12 (Jan.-Dec.)“ of P6 - P27 means a simple summation of FY2017.12 (Apr.-Dec. 9 months) and published results of Q4 of the FY2017.3.
Slide 6: Formulation of New Nissha Philosophy
Formulation of New Nissha Philosophy Mission We realize the enrichment of people’s lives by creating technology and developing it into economic and social value through the diverse capabilities, passion, and leadership of the global Nissha Group. Medium-term Business Plan Qualitative and quantitat
Slide 7: Nissha Innovation Way
Nissha Innovation Way Creating competitive products with diversification of technology and human resources Core Printing Coating Laminating Molding Patterning Technologies Constant transformation, evolution and expansion Nissha People "Regional composition of employees" As of end of Dec. 2017 Europe
Slide 8: Outline of Previous Medium-term Business Plan
Outline of Previous Medium-term Business Plan The Fifth Medium-term Business Plan (FY2016.3-FY2017.12) Medium-term Vision: We will acquire and merge new core technologies into printing technologies and completely reorganize our business portfolio in global growth markets. Basic Strategies Thorou
Slide 9: Review of previous Medium-term Business Plan
Review of previous Medium-term Business Plan 1 Implemented the strategy as planned, laid ground-work to higher profit contribution Information Life Industrial Materials Devices Innovation and Communication Expand into Expansion of Withdraw Acquired Expansion of Expand into Company a Metallized the f
Slide 10: M&A in the previous Medium-term Business Plan
M＆A in the previous Medium-term Business Plan Investment amount: 35 billion yen, ROIC* 9% *cash-based ROIC Automotive = EBITDA ×(1-tax rate30％)÷ Investment amount Schuster Group Acquired in October 2016 Headquarters: Germany High-function Packaging Materials AR Metallizing Group Acquired
Slide 11: Review of previous Medium-term Business Plan: Results vs Plan
Review of previous Medium-term Business Plan 2 Net Sales is a record high, improving profitability is the focus Fifth Medium- Fifth Medium-term term Business Business Plan Plan (FY2017.12) (FY2018.3) Converted Results Apr.-Mar. Plan Net Sales 150,000 193,481 √ Updated record high IT ratio 40％ IT rat
Slide 12: Medium-term Vision: Balanced Portfolio Management
The Sixth Medium-term Business Plan Medium-term Vision 1 Aim at “Balanced Portfolio Management” *The name of Life Innovation has changed to Medical Technologies from January 2018. Fifth Sixth Seventh Others Information and Communication (Millions of Yen) Medical Technology* Devices Industrial Materi
Slide 13: Medium-term Vision: Net Sales 240 billion yen, EBITDA 15%
The Sixth Medium-term Business Plan Medium-term Vision 2 Net Sales 240 billion yen, EBITDA 15％ The Fifth The Sixth Medium-term Medium-term Business Plan Business Plan FY2017.12 FY2020.12 CAGR (Jan.-Dec.) (Jan.-Dec.) Converted Results Vision* Net Sales 193,481 240,000 7.4% (Millions of Yen) EBITDA (M
Slide 14: Net Sales and EBITDA drivers by segment
Net Sales is driven by Industrial Materials and Medical Technologies. EBITDA is driven by Devices (Millions of Yen) CAGR 240,000 CAGR 20.7% CAGR 9.9% 193,481 1.8% Net Sales CAGR 7.4% FY2017.12 2017/12期 Devices ディバイス Industrial 産業資材 Medical メディカル メディカル Others 情コミ・その他 FY2020.12 2020/12期 テクノロジー (includ
Slide 15: Focus Markets
Focus Markets IT, Automotive, Medical Devices, High-function Packaging Materials Net Sales: FY2017.12→FY2020.12 Composition ratio=ratio of the Company’s net sales Automotive MediTech＝Medical Technologies Net Sales 19.1→30.7 EBITDA(%) billion yen (FY2020.12) (Composition ratio 10％→13％) 30% High-funct
Slide 16: Devices: Capture business opportunities through utilizing JV
Devices Capture business opportunities through utilizing JV CAGR FY2017.12 Net Expanding business opportunities Sales →FY2020.12 1.8 ％ IT, Automotive, Industrial Equipments ■For Gaming Consoles, Industrial Film-based Touch Sensors 《Net Sales Trend by Applications》 Equipments and Automotive, √
Slide 17: Utilization of JV and Optimization of production efficiency
Utilization of JV and Optimization of production efficiency with emphasis on ROIC The Fifth Medium-term Business Plan The Sixth Medium-term Business Plan Business Opportunity Business Opportunity 事業機会 Japan Japan China Himeji, Kaga, Tsu Himeji, Kaga, Tsu JV with Lens Technology(Changsha) Expand Deve
Slide 18: Industrial Materials
Industrial Materials Automotive and High-function Packaging Materials are growth engines CAGR FY2017.12 Automotive →FY2020.12 Geographical expansion to areas 《Net Sales Trend by Field》 where market growth is expected (Millions of Yen) ■High-function Packaging Materials Expansion of new materials
Slide 19: Market opportunity of Decoration (Automotive)
Market opportunity of Decoration (Automotive) South and Southeast Asia, driving growth Automotive (Thousand) Market growth rate Market forecast 120,000 (Production volume) (CAGR) ▼ 100,000 South and Southeast Asia 10.5% √ 80,000 China 8.8% 60,000 South America 9.5% 40,000 North America 3.5% 20,000 E
Slide 20: Strategy of High-function Packaging Materials
Strategy of High-function Packaging Materials Expansion of environmentally friendly package market Sales by application High printability and biodegradability (Millions of Yen) AR Metallizing won the European 30,000 Business Award ■Other application ■For Beverages 25,000 Expand product appli
Slide 21: Medical Technologies
Medical Technologies Growing mainly in contract manufacturing fields Medical Devices CAGR Medical Devices Business (Contract FY2017.12 (Own brand) Media manufacturing) →FY2020.12 《Net Sales Trend by Field》 (Millions of Yen) Surgical instruments, Medical electrode*, 35,000 Industrial chart ■Business
Slide 22: Growth Strategy in the Medical Devices
Growth Strategy in the Medical Devices Expanding contract manufacturing market Utilize our strengths Major Medical Devices makers Low cost operation (Dominican focus on R&D and marketing Republic) Design and production tend to Synergy with other business be outsourced Medical Devices Man
Slide 23: Information and Communication
Information and Communication Aim for profitability improvement 《Net Sales Trend by Field》 ■Others (Millions of Yen) 20,000 ■Publishing Printing 17,890 ■Commercial Printing 18,000 16,000 Improve profitability mainly 14,445 14,500 in the commercial field 14,000 12,000 Implement business structure
Slide 24: Growth Investment
Growth Investment Assuming around 60 billion yen to be allocated, focusing on growth and return M＆A Capital investment 3 years budget 3 years budget (Millions of Yen) (Millions of Yen) 40,000 40,000 35,000 31,500 30,000 28,500 30,000 26,000 20,000 20,000 10,000 10,000 0 0 The Fifth The Sixth The Fif
Slide 25: Shareholder returns through dividends and share buybacks
Shareholder returns through dividends and share buybacks Dividend: Based on stable dividend, add business growth (yen) 《Annual dividend per share》 50 Record highest dividend Results was 45 yen 40 30 30 30 30 30 The Sixth Medium- shareholders Return to 20 term Business Plan: 20 aim to achieve 10 5
Slide 26: ESG initiative
ESG initiative Realize Mission through business activities Mission We realize the enrichment of people’s lives by creating technology and developing it into economic and social value through the diverse capabilities, passion, and leadership of the global Nissha Group. Creating social value IT Automo
Slide 27: FY2018.12 Full-year results forecast
FY2018.12 Full-year results forecast Net Sales are expected to reach a record high (Millions of Yen) FY2018.12 FY2017.12 FY2018.12 FY2018.12 Full Year Full year H1 H2 YoY (Jan.-Dec.) (Jan.-Dec.) (Jan.-Jun.) (Jul.-Dec.) Forecast Forecast Forecast Net Sales 193,481 227,000 81,000 146,000 +17.3% Indust
Slide 28: Reference cost: Capital investment, Depreciation and R&D
Reference cost: Capital investment, Depreciation and R&D Capital investment Depreciation cost R&D cost (Millions of Yen) (Millions of Yen) (Millions of Yen) 20,000 15,000 5,000 17,000 4,000 9 months 9 months 9 months 15,000 4,000 * 10,000 3,000 12,267 10,000 8,351 8,250* 7,847 2,519 7,105 2,422 9,06
Slide 29: Reference: Net Sales by field and application 1
Reference: Net Sales by field and application 1 Industrial Materials Devices ■Metallized Paper ■Others ■For Gaming Consoles, Industrial ■High-function (Millions of ■Home Appliance (Millions of Equipments and Automotive, Yen) Packaging Materials Yen) Gas Seonsors and others ■Mobile Phone ■Decoration
Slide 30: Reference: Net Sales by field and application 2
Reference: Net Sales by field and application 2 Medical Technologies Information and Communication ■Business Media ■Others (((Millions of (Millions of Yen) ■Medical Devices (Own Brand) Yen) ■Publishing Printing 30,000 ■Medical Devices (Contract Manufacturing) 20,000 ■Commercial Printing 16,709 25,00
Slide 31: Thank you.
Thank you. Contact to: Investor Relations Nissha Co., Ltd. T ＋81 75 823 5144 NISSHA CONFIDENTIAL PROPRIETARY 31
Slide 32: Disclaimer
Disclaimer; These presentation materials include statements and data that show future Forecast related to the results, strategies, business plans, etc., of Nissha Co., Ltd. These statements and data related to future Forecast are not actual facts of the past, but rather Forecast that Nissha has judg