Slide 1: Financial Results for FY2020.12 Q2
Financial Results for FY2020.12 Q2 Ended June 30, 2020 August 6, 2020 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Financial results highlights
Financial results highlights FY2020.12 H1 Results IFRS ⚫ Much-lower-than-expected operating loss, in spite of COVID-19 (1USD=JPY107） ⚫ Net sales 77.1 billion yen, Operating loss 1.2 billion yen, Loss before tax 1.1 billion yen, Loss attributable to owners of parent 0.2 billion yen ⚫ The Call for Vol
Slide 3: FY2020.12 H1 (6 months) Result
FY2020.12 H1 (6 months) Result Net sales was almost as expected, operating loss was diminished significantly (Millions of JPY) FY2020.12 FY2019.12 FY2020.12 Jan.-Jun.(H1) Jan.-Jun. Jan.-Jun. Revised (H1) (H1) YoY forecast on Results Results May 13 IFRS IFRS IFRS Net Sales 74,408 77,000 77,164 +3.7%
Slide 4: FY2020.12 Q2 (3 months) Result
FY2020.12 Q2 (3 months) Result Impact of COVID-19 was inevitable, bottomed out in May. *Temporary expense of 2.6 billion yen incurred by the Measures to Strengthen Profitability (2.0 billion yen) and impairment losses (0.6 billion yen) (impacting to operating profit on IFRS) (Millions of JPY) FY2019
Slide 5: Industrial Materials
Industrial Materials Due to COVID-19, demand for mobility components deteriorated. Recovery trend bottoming out in May. Net sales trend by ■ ■Sustainable Packaging Materials (Metallized paper) application (by quarter) ■ ■Decoration (Others) (Millions of JPY) ■ ■Decoration (Mobility (Automotive/Trans
Slide 6: Devices
Devices Strong demand for tablet devices, portable game players and industrial equipment (logistics related) Net sales trend by ■ ■Portable game players, Industrial equipment (logistics related), Mobility (Automotive/Transport equipment), Gas sensors and application (by quarter) others (Millions of
Slide 7: Medical Technologies
Medical Technologies Due to COVID-19, demand for own brand products increased sharply. Demand for contract manufacturing and business media decreased. Net sales trend by ■ ■Business media ■ ■Medical devices (Own brand) (Millions of JPY) application (by quarter) ■ ■Medical devices (Contract manufactu
Slide 8: Information and Communication
Information and Communication Due to COVID-19, product demand for commercial printing decreased. (Millions （百万円）of JPY) Net sales trend by ■ ■Others 3,000 application (by quarter) ■ ■Publication printing ■ ■Commercial printing 2,354 1,977 1,947 2,000 1,624 1,462 1,201 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 FY201
Slide 9: Demand outlook for H2 (compared to H1)
Demand outlook for H2 (compared to H1) Product demand bottomed out in Q2, by the impact of COVID-19. Outlook for recovery from Q3. Business unit Products Markets Trend H1 → H2 Devices Film-based Smartphones Demand is expected to increase due to the touch sensor start of mass production of 2020 model
Slide 10: Revision of the Forecast FY2020.12
Revision of the Forecast FY2020.12 Revised upward, turn black on operating profit for full-year (Millions of JPY) Previous forecast (May 13) Revised forecast (August 6) FY2020.12 FY2020.12 FY2020.12 FY2020.12 FY2020.12 FY2020.12 Full-year Full-year H1 H2 H1 H2 (Jan.-Dec.) (Jan.-Dec.) (Jan.-Jun.) (Ju
Slide 11: Financing, investment plan, return to shareholders
Financing, investment plan, return to shareholders Financing ⚫ Loans from banks: Increased borrowing capacity for working capital (arranged in FY2019) ⚫ Reserved corporate bond issue limit (30.0 billion JPY) ⚫ Completed in sale of a part of strategically holding shares ✔ (profit on sale is approx. 6
Slide 12: Update on the 6th Medium-term Business Plan
Update on the 6th Medium-term Business Plan （2018-2020） 12
Slide 13: Medium-term Vision: Completion of Balanced Management in Our Business Portfolio
Medium-term Vision: Aim for “Completion of Balanced Management in Our Business Portfolio” IT Non-IT ⚫ Profitability and ⚫ Execution of growth strategy efficiency Mobility Medical IT ✔ （Automotive) ✔ Devices Sustainable Packaging Materials 13
Slide 14: Film-based touch sensors for automotive displays grows to around 10.0 billion JPY
Mobility Film-based touch sensors for automotive displays grows potentially up to around 10.0 billion JPY in 2023 Automotive display market’s Sales outlook for Mobility Business expansion in continue (100 million JPY) ⚫ More displays inside a car 350 ⚫ Larger displays 300 10.0 250 Film-based billion
Slide 15: Nissha Medical Technologies (NMT)
Medical Devices Nissha Medical Technologies (NMT) Signing of a definitive agreement to acquire the assets of Olympus Group’s Norwalk, Ohio medical manufacturing operation ©2020 Nissha Group 15
Slide 16: NMT Design and Manufacturing division is driving the growth
Medical Devices Nissha Medical Technologies Design and Manufacturing division (for contract manufacturing) is driving the growth NMT sales breakdown CAGR 23.2% by business （2017～2019） Design and Manufacturing Business media FY2019.12 HQ: Buffalo, NY Net sales 24.0 billion yen Main product examples F
Slide 17: Signing of a definitive agreement to acquire Olympus Norwalk, Ohio assets
Medical Devices Signing of a definitive agreement to acquire the assets of Olympus Group’s Norwalk, Ohio medical manufacturing operation Component and device production for therapeutic devices Business (rigid endoscopes, energy devices, and so on) Site Norwalk, Ohio Employees 111 (as of the end of A
Slide 18: Olympus focuses on medical field; High growth in Medical TSD
Medical Devices Olympus focuses on medical field High growth in Medical TSD Olympus Business Portfolio (Excerpts from materials for Olympus Management Strategy Briefings) https://www.olympus-global.com/ir/data/pdf/corporate_strategy_20191106.pdf ⚫ Medical-Therapeutic Solutions Division CAGR8% from 2
Slide 19: Production capability acquisition for Olympus' Therapeutic Solutions Divisions
Medical Devices Production capability acquisition for components and devices for Olympus’ Therapeutic Solutions Divisions Product examples Components for energy devices (Laparoscopic Surgery ) Minimally invasive Rigid endoscopes Single-use (Urology) Minimally invasive Components for Lithotriptors (U
Slide 20: Establish position as a leading supplier in the therapeutic device field
Medical Devices Establish position as a leading supplier in the therapeutic device field 1. Maintain supplier position for Olympus Manufacture and supply of Assembly/ components and devices sales OSTA ⚫ Asset acquisition of Norwalk factory 2. Enhance our support to the global customers in US 3. Cont
Slide 21: Growth through synergies
Medical Devices Growth through synergies Production asset and know-how from Olympus Therapeutic business Establish position as a leading supplier in the therapeutic device field Design and Manufacturing Nissha’s engineering capability and sales channel capabilities of NMT (Molding, Machining) ©2020
Slide 22: Reference: Capital investment, Depreciation and amortization, M&A investment, R&D
Reference: Capital investment, Depreciation and amortization, M&A investment, R&D (Millions of JPY) Q1 (Jan.-Mar.) Q2 (Apr.-Jun.) Results Results Capital 1,435 1,041 investment Depreciation and 2,074 2,076 amortization M&A investment 1,431 *2018/12期より国内グループ会社の減価 213 償却の方法を定率法から定額法に変更しています。 R&D 671 7
Slide 23: Among the information included in this presentation and provided at investor briefings and conferences,
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