Nissha Co.ltd. · TSE:7915

Nissha Co.ltd — Investor Presentation (May 2023)

27 slides from Nissha Co.ltd's investor presentation, May 26, 2023

Slide 1: Medical Technologies
Medical Technologies Investor Conference | May 26, 2023 Tokyo, Japan Junya Suzuki President and CEO Sam Heleba Executive Vice President General Manager of Medical Technologies Business Unit Nissha Co., Ltd.
Slide 2: Evolution of market portfolio toward 2030
Evolution of market portfolio toward 2030 ■ Medical ■ Mobility ■ Sustainable Materials ■ IT Devices ■ Others 2025 2030 2020 Target Sustainability Vision Net sales Net sales Net sales 180.0 235.0 300.0 JPY bn JPY bn JPY bn Medical Medical CAGR CAGR 16% 26% ©2023 Nissha Group 2
Slide 3: Nissha Medical Technologies (NMT) overview
Nissha Medical Technologies (NMT) overview ⚫ NMT as a business unit of Nissha drives 3 businesses. ⚫ The focus of the presentation is “CDMO”, which drives growth of NMT CDMO Own Brand Business Media Brand Products ©2023 Nissha Group Note: Image is an illustration purpose. 3
Slide 4: Innovation driven by outsourcing CDMO activity & converging technology
Innovation driven by outsourcing CDMO activity & converging technology WHY: OEMs need to remain competitive in complex market driven innovation environment. ⚫ OEMs are pursuing opportunities to optimize their operations, outsource outside of their core competencies and focus on overall delivery of M
Slide 5: High growth in medical device CDMO market
High growth in medical device CDMO market Nissha Medical Technologies Global Medical Device Market US CDMO Market CDMO (US$ bn) (US$ bn) (JPY bn) CAGR: 7% CAGR: 10% CAGR: 12% 18.8 575 26.3 439 17.9 11.8 2019 2023 2019 2023 2019 2023 Forecast Forecast Forecast Source: Our research based on Arila Heal
Slide 6: Committed and knowledgeable NMT management team
Committed and knowledgeable NMT management team JUNYA SUZUKI Chairman of the Board, SAM HELEBA President and CEO Executive Vice President General Manager of Medical Technologies Business Unit CEO, Nissha Medical Technologies MIKE MEMMINGER JONATHON CASEY DR. MICHAEL GAGLIO BRANDON HOFFMAN ERIC SHERR
Slide 8: Contract Design/Development and Manufacturing Organization
Contract Design/Development and Manufacturing Organization ⚫ Vertically integrated end-to-end solutions partner for design, development, and contract manufacturing of medical technologies ⚫ Design expertise with manufacturing excellence for global MedTech OEMs ⚫ Leveraging advanced technologies and
Slide 9: Strategic partnership with global medical device OEMs
Strategic partnership with global medical device OEMs Strong track record with 8 of 10 top OEMs The OEM trademarks shown here belong to their respective OEMs and do not belong to the Company or its affiliates. We do not guarantee the relationship or relationship between the products and services of
Slide 10: Our role
Our role OEM’s role Our role ⚫ CDMO partner manufacturing surgical devices for global OEMs ⚫ Design and development generates value-add for OEMs in upstream in value chain ⚫ We leverage operational excellence to optimize manufacturing Voice of Customer Sales & & Innovation Design Development Manufac
Slide 11: Areas of specialization (Single-use)
Areas of specialization (Single-use) Clinical Products Surgical Devices Clinical Wearable CDMO Sales 16,330 JPY mm 2022 60% Minimally Invasive Surgical Devices Grounding Pads Endoscopic Irrigation Endoscopic, Laparoscopic, Biopsy, and Insufflation Tubing Surgical Robotic, and Surgical Navigation app
Slide 12: Surgical devices product examples
Value-add Surgical devices product examples Endoscopes Cystoscopes Bone & Septal Staplers High-definition camera with autofocus feature Specialty instrumentation used Rotator cuff repair device and septal within urology field repair device Cables & Guidewires Grabbers Ablation Catheters Reusable and
Slide 13: OEMs choose NMT for value-add design services
Value-add OEMs choose NMT for value-add design services CUSTOMER CUSTOMER NMT MUTUAL SITUATION CHALLENGES PROCESS RESULT • Medical device company • Reusable device necessary • NMT’s design team • Commercially viable device at seeking outsourced design to make disposable and engagement for full desig
Slide 14: Increase of line-transfers from OEM partners
Operational Excellence Increase of line-transfers from OEM partners ⚫Strong purchasing power, ability to automate, and expertise in process engineering Finished devices ⚫ Improved material cost Annual sales* accumulation in pipeline ⚫ Better through-put (JPY bn) ⚫ Optimized space utilization Custome
Slide 15: Global manufacturing with specialized centers of excellence
Operational Excellence Global manufacturing with specialized centers of excellence ©2023 Nissha Group 15
Slide 16: Quality oriented manufacturing process
Operational Excellence Quality oriented manufacturing process Nissha Quality Policy Full range manufacturing processes Manual Assembly Semi-Automation Full-Automation Nissha Quality Way High volume, low mix Low volume, high mix ©2023 Nissha Group 16
Slide 17: Profitability & velocity improvements
Operational Excellence Profitability & velocity improvements COVID-19 challenges Speedy recovery and growth ⚫ Cancellation of elective surgeries ⚫ Operational excellence 120,000 115,000 ⚫ Human resources shortage ⚫ Lean management, Kaizen 110,000 14.0% ⚫ Material shortage ⚫ Divestment of non-core pr
Slide 18: Strong trend continues for outsourcing to strategic partners
Strong trend continues for outsourcing to strategic partners for line-transfers and new design programs ⚫ OEMs showcase key value-add Voice of customers strategic supplier excellence awards Surgical device design on GI stapler ⚫ Agile production from NMT provides “With Nissha we commercialized our p
Slide 19: Securing our growth
Securing our growth ⚫ Increasing opportunities in accordance with our enhanced CDMO capabilities and the market trend ⚫ Numerous programs in our pipeline to release to manufacturing is enabling growth for the mid-term Annual sales* accumulation inNUMBER pipeline OF PROGRAMS Number of programs in pip
Slide 20: Capacity for growth
Capacity for growth ⚫ Example: Dominican Republic 1st factory 2nd factory 3rd factory YOUR NEXT PROJECT HERE! ⚫ Mass volume production ⚫ Space available for future programs ⚫ Planning for consistent and stable growth ⚫ Fully operated ⚫ To be occupied with the production lines to be transferred from
Slide 21: Enhancing our growth
Enhancing our growth Deeper dive into end-to-end integration Exploration of new application ⚫ Capabilities reinforcement ⚫ Sensing features ⚫ Co-development with Nissha Japan team ⚫ Complex end-effectors ⚫ Sub-system development ⚫ Navigation ⚫ Integration support to OEMs ⚫ Endoscopy Design Developme
Slide 22: Focus for our growth
Focus for our growth Existing Emerging Surgical Devices Surgical Robots 7.2 USD bn 7.3 USD bn US CDMO Market Global Market 11.6% 17.5% Market CAGR *1 Market CAGR*2 Clinical Products Smart Devices 3.9 USD bn 38.0 USD bn US CDMO Market Global Market 10.6% 10.1% Market CAGR*1 Market CAGR*2 *1: 2019-202
Slide 23: Active emerging market programs
Active emerging market programs Number of Products Remarks programs Tracking device for surgical Surgical robot 5 tools and robotic end- effectors Surgical navigation 1 Non-invasive device Multi-parameter remote 2 Smart wireless device monitoring ©2023 Nissha Group Note: Image is an illustration pur
Slide 24: CDMO EBITDA 15% in 2025
CDMO EBITDA 15% in 2025 ■Sales (CDMO, JPY mm) 30,000 ●EBITDA margin (CDMO) Business expansion ⚫ Efficient release to manufacturing of new 23,200 programs from the pipeline ⚫ Acquisition of new programs for surgical devices 20,000 18,800 and clinical products 16,330 15.0% ⚫ Pursue new opportunities f
Slide 26: Growth of Medical Technologies Business Unit
Growth of Medical Technologies Business Unit Prospects for 2025 ■Business Media ■Own Brand ⚫2023: Profitability returns to normal ■CDMO ● Operating profit margin ⚫Advantages (JPY mm) 41,000 ⚫ Fertile market trend (CDMO and our target segments) 35,200 ⚫ Add value through design and development ⚫ Oper
Slide 27: Forward-looking information disclaimer
Among the information included in this presentation and provided at investor briefings and conferences, performance targets, plans, outlooks, strategies and other information that is not constituted of actual past facts, is information that has been judged reasonable by the managers of the Company b

Nissha — Investor Presentation (May 2023) on 6ix

Nissha Co.ltd — Investor Presentation (May 2023)

Slide 1: Medical Technologies

Slide 2: Evolution of market portfolio toward 2030

Slide 3: Nissha Medical Technologies (NMT) overview

Slide 4: Innovation driven by outsourcing CDMO activity & converging technology

Slide 5: High growth in medical device CDMO market

Slide 6: Committed and knowledgeable NMT management team

Slide 7: Nissha Medical Technologies CDMO

Slide 8: Contract Design/Development and Manufacturing Organization

Slide 9: Strategic partnership with global medical device OEMs

Slide 10: Our role

Slide 11: Areas of specialization (Single-use)

Slide 12: Surgical devices product examples

Slide 13: OEMs choose NMT for value-add design services

Slide 14: Increase of line-transfers from OEM partners

Slide 15: Global manufacturing with specialized centers of excellence

Slide 16: Quality oriented manufacturing process

Slide 17: Profitability & velocity improvements

Slide 18: Strong trend continues for outsourcing to strategic partners

Slide 19: Securing our growth

Slide 20: Capacity for growth

Slide 21: Enhancing our growth

Slide 22: Focus for our growth

Slide 23: Active emerging market programs

Slide 24: CDMO EBITDA 15% in 2025

Slide 25: Wrap up

Slide 26: Growth of Medical Technologies Business Unit

Slide 27: Forward-looking information disclaimer