Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — Investor Presentation (February 2024)
32 slides from Nissha Co.ltd's investor presentation, Feb 28, 2024
Slide 1: The 8th Medium-term Business Plan
The 8th Medium-term Business Plan February 28, 2024 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Business Portfolio Management to Enhance Corporate Value
Business Portfolio Management to Enhance Corporate Value ©2024 Nissha Group 2
Slide 3: Our Business (Product)/Market Portfolio
Our Business (Product)/Market Portfolio Medical Mobility Sustainable Materials IT Devices Market Business (Product) Cash Cow Star Industrial Metallized paper Injection molded Decoration/Functional parts parts Problem Child - Materials Sustainable molded (Interior/Exterior) products Sensing technolog
Slide 4: Sustainability Vision (Announced in February, 2021)
Sustainability Vision (Announced in February, 2021) With the integration and orchestration of the diverse talents of our people and our technologies, we will contribute to solving global social issues in the priority markets of Medical, Mobility, and Sustainable Materials, and realize the enrichment
Slide 5: Corporate value growth through sustainable growth and capital efficiency
Corporate value growth through sustainable growth and capital efficiency Market select ⚫ Selection of markets promising stable growth Sustainable Growth Optimized ⚫ Focus on 3 priority markets of PER (Growth Potential/Stability) diversification non-IT Devices Business portfolio ⚫ Balancing between g
Slide 6: PBR (PER×ROE) Analysis
PBR (PER×ROE) Analysis ⚫ PBR: Due to the low profitability and volatility, PBR remains low ⚫ PER (Growth Potential/Stability): The extreme demand volatility of IT Devices caused the operating profit margin to swing year by year ⚫ ROE (Profitability/Efficiency): The average ROE in the medium-term bus
Slide 7: Curbing demand volatility
Curbing demand volatility ⚫ Move away from a strong focus on IT Devices ⚫ Select and Diversification: 3 priority markets of non-IT Devices (Medical, Mobility, and Sustainable Materials), focusing on profitability improvement The 6th Medium-term The 7th Medium-term 3 priority markets of non-IT Device
Slide 8: The 8th Medium-term Business Plan (2024-2026)
The 8th Medium-term Business Plan (2024-2026) ©2024 Nissha Group 8
Slide 9: Strategy of the 8th Medium-term Business Plan
Strategy of the 8th Medium-term Business Plan Exploitation of business Prioritizing ROIC improvement, guided by disciplined business decision- portfolio management making Simultaneously facilitating business growth and stabilizing profit margin, leading the enhancement of corporate value Star: Accel
Slide 10: Business Portfolio Management
Business Portfolio Management ©2024 Nissha Group 10
Slide 11: Our business portfolio management
Our business portfolio management * ⚫ Assessing businesses and products by Key Performance Indicators (KPIs) according to the growth stage ⚫ Allocating resources optimally to improve the capital efficiency of the entire company high Star Problem Child Acquire market share Nurture next stars in futur
Slide 12: Business portfolio of the 8th Medium-term Business Plan
Business portfolio of the 8th Medium-term Business Plan ⚫ Well-balanced positioning to achieve improved profit margin high Star Medical Pharmaceuticals Problem Child ⚫ Focus resources on the 3 priority markets Devices CDMO Net Profita- Invest- Sustainable Materials Business Market (Sustainable molde
Slide 13: Medical Technologies
Medical Technologies ■Net Sales（■Business media ■Medical devices (Own brand) 60,000 ■Medical devices (CDMO)) (Millions of JPY) ●Operating profit margin Net sales Operating profit ROIC CAGR margin (2023→2026) 49,000 (2023→2026) 1.9% → 50,000 44,800 4.1％ → 42,000 10.8% 6.4% 10.8% 40,000 36,011 Medical
Slide 14: Targeting segments with high growth potential by CDMO business model
<Targeting segments with high growth potential by CDMO business model> ⚫ Accelerating growth by extending the Medical Devices CDMO Market coverage segments ⚫ CAGR 11%, which is higher than global medical device market CAGR 5% Existing segment Emerging segment CAGR: 11% Minimally Invasive Devices for
Slide 15: Seizing market needs, targeting new frontiers
<Seizing market needs, targeting new frontiers> Existing segment Emerging segment Needs on cutting-edge Visualization + Navigation Moduled products for Endoscopes surgical robotics Acquisition of Enabling Technologies, Electrosurgical Devices through M&A, partnership, and R&D across business units M
Slide 16: New pipeline potentials through the acquisitions of EndoTheia and Isometric Micro Molding
<New pipeline potentials through the acquisitions of EndoTheia and Isometric Micro Molding> ⚫ The cutting-edge steerability of surgical ⚫ Micro molding technology for miniaturization devices ⚫ Contribution to miniaturization of surgical ⚫ Steerable sheaths for device tips devices of robots Bends 360
Slide 17: Industrial Materials
Industrial Materials Decoration Sustainable Materials ■Net sales(■Sustainable Materials (Metallized paper and others) ■Decoration (Home appliance and others) Net sales Operating ROIC 100,000 ■Decoration (Mobility)) (Millions of JPY) profit margin ●Operating profit margin CAGR (2023→2026) (2023→2026)
Slide 18: Electrification and autonomous driving bring opportunities to exterior products
<Electrification and autonomous driving bring opportunities to decoration and functionalization of exterior products> Market Analysis ⚫Decoration (Mobility) ⚫ Global automobile production volume: Post- ⚫ Interior decoration: Expanding orders from 2023, a generally flat trend is assumed existing OEM
Slide 19: Strategy for Mobility
<Strategy for Mobility> ⚫ Interior decoration ⚫ Exterior functional products as a growth ⚫ Gaining more business opportunities driver ⚫ Intensive sales promotion orders to existing OEM ⚫ Reliable mass production launch of secured customer base projects ⚫ Expansion of the new design trend ⚫ By 2026,
Slide 20: Strategy for Sustainable Materials
<Strategy for Sustainable Materials> Metallized paper Cash Cow Sustainable molded products Problem Child Metallized paper Market Sustainable molded products Market ⚫ The global beverage market is projected to grow at ⚫ The pulp mold market is growing at a CAGR of 8% a CAGR of 4% ⚫ The needs for plas
Slide 21: Devices
Devices Net sales Operating ROIC CAGR profit margin (2023→2026) ■Net sales (■Gaming devices, Handheld terminals (logistics related), Mobility, Gas sensors and others (2023→2026) -5.2%→ 100,000 -2.9％→ ■Tablet devices ■Smartphones) (Millions of JPY) 8.5% 15.3% 90,000 ●Operating profit margin 8.0% 80,0
Slide 22: Future star
Future star Problem Child Pharmaceutical (Drug Manufacturing) Force sensor Devices Film processing technology product line-ups (New Business Development Office) ⚫ Expansion of film sensor product line-ups for ⚫ Business opportunities in changing dosage detecting pressure, friction, strain, and more
Slide 23: The 8th Medium-term Business Plan Financial plan
The 8th Medium-term Business Plan Financial plan ⚫ Operating profit margin of 10% or higher in 3 priority markets of non-IT devices ⚫ Aiming for a ROE of 9% or higher The 7 th Medium-term Business Plan The 8 th Medium-term Business Plan 2021 2022 2023 2026 Plan 2026 Plan (Millions of JPY) 2024 Plan
Slide 24: The phase of the 8th Medium-term Business Plan
The phase of the 8th Medium-term Business Plan ⚫ Accelerating growth in 3 priority markets of non-IT devices and the achievement of sustainability vision are within reach ■Smartphones ■Tablet devices ■Others ■Sustainable Materials ■Mobility ■Medical (Millions of JPY) ●Operating profit margin 3 prior
Slide 25: Cash Allocation
Cash Allocation ©2024 Nissha Group 25
Slide 26: Capital allocation and shareholder returns
Capital allocation and shareholder returns Cash-in Cash-out 000 Cash-in Cash-out ⚫ Sale of non-operating assets ⚫ Reduction of strategic ⚫ M&A Sale of Shareholder shareholdings, etc. 000 non-operating returns ⚫ Priority on Medical JPY11.0 ⚫ Flexible financing (borrowing assets Billion or higher and
Slide 27: Initiatives Enabling Business Portfolio Management
Initiatives Enabling Business Portfolio Management ©2024 Nissha Group 27
Slide 28: Leveraging core technologies comprehensively to create added value
Leveraging core technologies comprehensively to create added value Printing Coating Laminating Peripheral technologies to reinforce core technology (Sub core technologies) Processing technology of applying Processing technology of forming Processing technology of ⚫ Software/Control designs and funct
Slide 29: Quality and production strategy to generate profits
Quality and production strategy to generate profits ⚫ Enhancing value across the entire value chain (the process of creating value) ⚫ Transforming business processes ⚫ Pursuit of lean operations from upstream ⚫ Promoting automation and digital technology ⚫ Definition of quality and added value at in
Slide 30: Human capital management supporting portfolio strategy
Human capital management supporting portfolio strategy ⚫ Deploying appropriate talent to growth businesses (skills, expertise, diversity) Human resources system Human resource development (2020-) (2013-) ⚫ Transitioning to a ‘job-based’ approach, ⚫ Enhancement of Nissha Academy emphasizing roles and
Slide 31: Responding to Climate Change
Responding to Climate Change ⚫To reduce total CO2 emissions by 30% in 2030 (Compared to 2020, Scope 1 and 2) Industrial Materials Koka Factory ⚫Scope 1 and 2 ⚫ Completed the transition to 100% renewable energy at major domestic production facilities (2023) ⚫Approximately 55% of Nissha Group’s CO2 em
Slide 32: 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