Nireco Corporation · TSE:6863
Nireco — FY2018 Earnings Presentation
34 slides from Nireco's earnings presentation, May 17, 2019
Slide 1: Material for FY2018 Financial Results
NIRECO CORP. (6863) Material for FY2018 Financial Results May 17, 2019 Cautionary Statement This document includes forward‐looking statements that reflect management’s current assumptions and expectations of future events, and accordingly, they are inherently susceptible to uncertainties and changes
Slide 2: Trends in the performance
T r e n d s i n t h e p e r f o r m a n c e FY2017 FY2018 FY2019 (plan) Unit: JPY in Millions Orders Received: 8,695 Orders Received: 9,325 Orders Received: 9,300 Reviews On (+15％ YoY) (+7％ YoY) (▲0％ YoY) Financial Results Net Sales: 7,911 Net Sales: 8,441 Net Sales: 9,000 & (+7％ YoY) (+7％ YoY) (+7％
Slide 3: Trends in the performance
Trends in the performance (Unit: JPY in Millions) Net sales Operating profit 12,000 1,200 950 plan 10,000 898 1,000 result 705 649 8,000 result 800 result 537 result 9,000 6,000 plan 600 8,441 7,911 result 4,000 7,401 result 400 6,140 7,472 result result result 2,000 200 ‐5 result 0 0 FY2014 FY2015
Slide 4: Agenda
1. FY2018 Financial Results 2. Plans for FY2019 3. Towards sustainable growth 3 Nireco Corporation
Slide 5: 1. FY2018 Financial Results
1. FY2018 Financial Results （APR.2018 ‐ MAR.2019） 4 Nireco Corporation
Slide 6: Consolidated Statement
Consolidated Statement Orders received, operating and ordinary profit exceeded those of FY2017 and the initial plan. (Unit: JPY in Millions) FY2017 FY2018 Inc‐Dec Rate Result Plan Result YoY Res./Plan Orders Received 8,695 9,000 9,325 +7% +4% Net Sales 7,911 8,600 8,441 +7% ▲2% Operating Profit 70
Slide 7: Increase/Decrease Factors in Operating Profit
Increase/Decrease Factors in Operating Profit YoY (Unit: JPY in Millions) 1,200 Dec. in Fixed Cost*1 Strategic Investment*2 1,000 +46 ▲81 Inc. in Sales +203 800 Dec. in Cost +25 600 400 FY2018 FY2019 705 898 *1: Fixed Cost = SG&A Expenses (excl. R&D Expenses) *2: Strategic Investment = R&D Expenses
Slide 8: Process Control Business
Process Control Business Orders received, net sales and segment profit exceeded those of FY2017 Orders for focused products, the position control & measuring equipment, increased (Unit: JPY in Millions) FY2017 FY2018 Inc‐Dec Rate Result Plan Result YoY Res./Plan Orders Received 2,964 3,050 3,535
Slide 9: Web Control Business
Web Control Business Net Sales and segment profit exceeded those of FY2017 Sales of position control equipment for LiB rechargeable battery and electronic parts production lines remained steady (Unit: JPY in Millions) FY2017 FY2018 Inc‐Dec Rate Result Plan Result YoY Res./Plan Orders Received 3,
Slide 10: Inspection System Business
Inspection System Business The amount of orders received and net sales for plain surface inspection systems exceeded those of FY2017 However, the increase in costs associated with aggressive investment resulted in less profitability The cyclical demand for fruit/vegetable sorting systems slowed
Slide 11: Balance Sheet
Balance Sheet (Unit: JPY in Millions) FY2017 FY2018 YoY Amount Composition R. Amount Composition R. Inc‐Dec Amount Cash and deposits 5,180 36.5% 4,990 35.6% ▲ 190 Notes and accounts recievable‐trade 3,066 21.6% 3,280 23.4% + 214 Inventories 1,626 11.4% 1,896 13.5% + 270 Other current assets 115 0.8%
Slide 12: Cash Flows
Cash Flows (Unit: JPY in Millions) 1,500 1,181 1,000 794 865 760 580 750 500 210 227 100 0 ‐114 ‐214 ‐306 ‐294 ‐500 ‐421 ‐315 ‐805 ‐1,000 ‐905 ‐860 ‐1,359 ‐1,500 ‐1,587 ‐2,000 FY2014 FY2015 FY2016 FY2017 FY2018 Cash flows from operating activities Cash flows from investments Cash flows from financia
Slide 13: Shareholders return
Shareholders return Basic Policy : Maintain stable dividend. Aim for a dividend payout ratio of 35% （JPY）80 50 (%) 40 60 30 40 20 20 10 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 Net profit per share (JPY) 1.28 65.8 50.39 69.79 66.07 Dividends (JPY） 20 20 20 24 24 Dividend payout ratio(％) 1,562 30.4 39.
Slide 14: 2. Plans for FY2019
2. Plans for FY2019 （APR.2019 ‐ MAR.2020） 13 Nireco Corporation
Slide 15: Business plan
Business plan Keeps high level of order backlog Ordinary profit margin of more than 11 % (Unit: JPY in Millions) FY2018 FY2019 Inc‐Dec Rate Result Plan Compared w/ FY2018 Result Amount of Orders Received 9,825 9,300 +0% Net Sales 8,441 9,000 +7% Operating Profit 898 950 +6% Operating Profit Marg
Slide 16: Transition of order backlog
Transition of order backlog (Unit: JPY in Millions) 4,000 3,500 910 3,000 629 2,500 748 2,000 391 834 548 593 1,500 595 464 468 2,141 1,000 1,468 500 1,167 865 911 0 FY2014 FY2015 FY2016 FY2017 FY2018 Process Control Business Web Control Business Inspection System Business 15 Nireco Corporation
Slide 17: Market conditions & measures: Process Control Business
Market conditions & measures: Process Control Business Domestic steel market Overseas steel market • Steel makers focus on capital investment to enhance • While seeing uncertainties, continuous demands for competitiveness the renewal of outdated production facilities can be expected in Chinese, Nort
Slide 18: Market conditions & measures: Web Control Business
Market conditions & measures: Web Control Business Domestic market Overseas market • Expect certain level of continuous demands for LiB rechargeable battery and electronic components • Expect certain level of continuous demands for LiB production lines rechargeable battery and electronic components
Slide 19: Market conditions & measures: Inspection System Business
Market conditions & measures: Inspection System Business High functional film market Food related market • Increase in inspection needs for processed food due to • Solid capital investment in facilities for LiB rechargeable (1) the change of eating style, e.g. food sold in single battery and electro
Slide 20: R&D
R&D Continue engaging in greater efforts on new development projects aimed at generating new revenue stream Main Development Theme ∙ Development of next‐generation inspection system ∙ Development utilizing laser technology (Unit: JPY in Thousands) ∙ Development utilizing magnetic field & microwave
Slide 21: 3. Towards sustainable growth
3. Towards sustainable growth 20 Nireco Corporation
Slide 22: Main goals for sustainable growth
Main goals for sustainable growth Strengthen our organization that can grow & develop in any circumstances Expansion of market • Drive overseas expansion Expand & enhance business foundations • Strengthen inspection system business • Exploit new fields of business through new‐product development Adv
Slide 23: 5-year plan
5‐year plan (Unit: JPY in Millions) Net sales Operating Profit 12,000 1,400 1,300 1,220 10,000 1,150 1,200 1,000 8,000 950 1,000 7,900 8,500 (initial plan) 7,400 (initial plan) 6,000 (initial plan) 800 11,000 10,500 10,000 8,000 9,500 9,000 (plan for FY2017) 4,000 7,472 600 7,401 (result) (result) 2
Slide 24: 5-year Plan (breakdown for Japan and overseas sales)
5‐year Plan (breakdown for Japan and overseas sales by business segments) (Unit: JPY in Millions) Overseas Sales ratio Net sales 4,000 40% 3,000 30% 2,000 20% 1,000 10% 0 0% Web Inspection Others Web Inspection Others Web Inspection Others Web Inspection Others Web Inspection Others Process Process
Slide 25: Reference Data
Reference Data 24 Nireco Corporation
Slide 26: Company Profile
Company Profile Company name NIRECO Corporation President & CEO Toshiharu Kubota Head office 2951‐4 Ishikawa‐machi, Hachioji, Tokyo, Japan Established November 1950 Stock exchange listing TSE JASDAQ (Standard) Paid‐in capital 3,072 Million Japanese Yen* Number of employees 355* Consolidated sales 8,
Slide 27: History
History 1950: Nihon Regulator Co., Ltd. established in Chuo‐ku, Tokyo 1979: Head office relocated to Hachioji, Tokyo 1984: Company name changed to NIRECO Corporation 1989: Registered on the OTC share market with the Japan Securities Dealers Association 1990: Acquired Miyota Seimitsu Co., Ltd. 1998:
Slide 28: Management philosophy
Management philosophy ‘TECHNOLOGY & TRUST’ Providing products taking advantages of the advanced control/measurement/inspection technology and services precisely responding to their needs, NIRECO will grow together with customers as a good partner and continue gaining their trust. Furthermore, the pr
Slide 29: Process Control Business
Process Control Business Markets automatic control equipment in several industries such as steel, metal, gas, chemical etc. Eddy Current Molten Steel Level Meter Measures the position of the surface of the Process Control System molten steel in the continuous casting Controls pressure, flow process
Slide 30: Process Control Business
Process Control Business Trends of regional crude steel production & capital investment of major domestic blast furnace makers (Unit: ton) (Unit: JPY One Hundred Millions) 1,400,000 10,500 1,200,000 9,000 1,000,000 7,500 800,000 6,000 600,000 4,500 400,000 3,000 200,000 1,500 0 0 2009 2010 2011 2012
Slide 31: Web Control Business
Web Control Business Markets position control equipment etc. for thin‐sheet materials so‐called 'Web’, such as paper, film and foil Web Position Print Quality Control System Tension Control System Inspection System Keeps web in a Maintains web tension at a constant Detects every constant position an
Slide 32: Inspection System Business
Inspection System Business Market quality inspection systems for a wide range of products from agriproduct to electronic components, developed based on image processing technology cultivated over many years 原材料 溶解Dissolving Process Raw Material: Raw原材料 Material Defect Inspection System for Plain Sur
Slide 33: Web Control Business / Inspection System Business
Web Control Business / Inspection System Business Forecast of Demand for Semiconductor & FPD Mfg. Equip. Automotive LiB World Market Forecast (Obj. business segment: Web & Insp.) (Obj. business segment: Web & Insp.) (Unit: MWh) (Unit: JPY in One Hundred Millions) 250,000 30,000 25,000 200,000 20,000
Slide 34: END
END 33 Nireco Corporation