Slide 1: Results Briefing for the Six Months Ended September 30, 2022
Securities ID code:6859 Results Briefing for the Six Months Ended September 30, 2022 ESPEC CORP. November 24, 2022
Slide 2: Financial Result for the Six Months Ended September 30, 2022
Financial Result for the Six Months Ended September 30, 2022 Electronics and automobile-related investment was strong, leading orders received and net sales to reach record highs. Operating profit increased significantly year on year, but fell short of forecasts due to part procurement difficulties
Slide 3: Summary of Profits and Losses
Summary of Profits and Losses (Millions of yen) FY 2021 2Q FY 2022 2Q FY 2022 2Q Comparison with Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 26,569 24,000 33,266 +25.2% +38.6% Net Sales 17,568 23,500 22,945 +30.6% -2.4% +29.6% +0.0% Cost of Net Sales 11,686 15,15
Slide 4: Performance by Segment
Performance by Segment (Millions of yen) FY 2021 2Q FY 2022 2Q FY 2022 2Q Comparison with Segment Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 22,763 20,200 29,209 +28.3% +44.6% Equipment Business Net Sales 14,421 20,000 19,650 +36.3% -1.7% Operating Profit 322 1,
Slide 5: Orders Received in FY2022 2Q
Orders Received in FY2022 2Q ■ Orders-received were strong, as the electronics and automobile markets performed better than anticipated Trends in orders received per quarter (consolidated) Continuation of prolonged product delivery times due to shortages of electronic components, etc. and procuremen
Slide 6: Net Sales in FY2022 2Q
Net Sales in FY2022 2Q ■ Although net sales were impacted in 1Q by the continuation of procurement difficulties in addition to lockdowns in Shanghai, there was significant recovery in 2Q as product delivery times partially improved and a system to increase production was established in response to t
Slide 7: Analysis of Operating Profit Increase and Decrease Factors (YoY)
Analysis of Operating Profit Increase and Decrease Factors (YoY) Equipment Business (Millions of yen) Service Business Other Business 199 -34 -12 25 25 287 133 Salaries and allowances 59 59 41 Commission expenses 28 Packing and freight costs Travel expenses product warranties Provision for developme
Slide 8: Statement of Assets and Liabilities
64,741 End of FY2022 2Q 7 (Millions of yen) 1,392 Liabilities and Net assets Net assets 40 Noncurrent liabilities +2,819 883 Other current liabilities -57 Electronically recorded obligations End of FY2022 2Q End of FY2021 560 Notes and accounts payable-trade 61,922 Statement of Assets and Liabilitie
Slide 9: Statements of Cash Flows
8 1,370 (Millions of yen) Increase (decrease) in funds 548 Effect of exchange rate changes -1,100 Total financial cash flow -156 Other -944 Dividends paid Total investment -400 cash flow 71 Other Purchase of property, -472 plant and equipment Statements of Cash Flows and intangible assets 2,322 Tota
Slide 10: Equipment Business
Equipment Business (Millions of yen) FY 2021 2Q FY 2022 2Q FY 2022 2Q Comparison with Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 22,763 20,200 29,209 +28.3% +44.6% Net Sales 14,421 20,000 19,650 +36.3% -1.7% Operating Profit 322 1,850 1,403 +334.9% -24.1% Profit
Slide 11: Service Business
Service Business (Millions of yen) FY 2021 2Q FY 2022 2Q FY 2022 2Q Comparison with Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 3,334 3,200 3,470 +4.1% +8.5% Net Sales 2,948 3,100 3,020 +2.4% -2.6% Operating Profit 171 150 72 -57.9% -51.8% Profit Ratio(%) 5.8% 4.
Slide 12: Other Business
Other Business (Millions of yen) FY 2021 2Q FY 2022 2Q FY 2022 2Q Comparison with Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 610 750 747 +22.5% -0.3% Net Sales 316 550 405 +28.0% -26.3% Operating Profit -99 -50 -80 - - Profit Ratio(%) -31.5% -9.1% -19.8% Environ
Slide 13: Sales by Market
Sales by Market Non-Consolidated (Equipment Business) Electronic device and equipment market Automobile market Semiconductor market Reserch institute Other markets 100% 80% 44 40 40 40 38 60% 16 16 17 19 23 40% 15 18 15 7 8 6 5 6 6 20% 7 24 24 23 25 18 0% FY 2018 2018年度 FY 2019 2020年度 2019年度 FY 2020
Slide 14: Sales by Region
Sales by Region FY 2021 2Q FY 2022 2Q Overseas sales ratio: 53.3% Overseas sales ratio: 57.8% 1.9% 1.9% ■Taiwan 21.8% ■China 26.1% ■South Korea 46.7% ■Europe 42.2% FY 2021 FY 2022 2Q 4.8% & North America 2Q ■South East Asia 4.1% ■Other 17.1% ■Japan 0.7% 7.4% 17.5% 1.5% 6.1% Total: 17,568 million yen
Slide 15: Forecasts for Fiscal 2022
Forecasts for Fiscal 2022 FY 2021 FY 2022 FY 2022 (Millions of yen) Full Year Full Year Forecasts (Revised on Oct 28) 1H Results Results Initial Forecasts 2H Full year Year on Year Orders-received 51,303 50,000 33,266 25,733 59,000 +15.0% Net sales 41,852 50,000 22,945 29,055 52,000 +24.2% Gross pro
Slide 16: Recognition of the Operating Environment
Recognition of the Operating Environment ・Although the momentum of orders-received in 1H will calm down, sales are forecast to be strong primarily in cutting-edge technology fields such as IoT and next-generation automobiles. ・There are concerns about the deceleration of the global economy caused by
Slide 17: Main Initiatives in FY2022
Main Initiatives in FY2022 Equipment Business ・Enhance product lineup to address testing demand in cutting-edge technology fields ・Globally develop customized products through overseas market launch of large-scale products ・Launch products for the European market ・Strengthen sales with a focus on gl
Slide 18: Segment Financial Forecasts
Segment Financial Forecasts (Millions of yen) FY 2021 FY 2022 FY 2022 Full Year Full Year 1H Forecasts (Revised on Oct. 28) Results Initial Forecasts Results 2H Full Year Year on Year Orders-Received 43,535 41,900 29,209 21,790 51,000 +17.1% Equipment Business Net sales 34,518 42,100 19,650 24,749 4
Slide 19: FY 2022 Dividend Forecast
FY 2022 Dividend Forecast Basic policy on profit distribution Our basic policy is to determine dividends taking into account sustainability and the dividend payout ratio, and we revised our basic dividend policy as below at the Board of Directors meeting in May 2022. ・In addition to a dividend payou
Slide 20: Main Initiatives for ESG
Main Initiatives for ESG ■E (Environment) ・Establish targets to reduce greenhouse gas emissions by FY2030 ・Formulate the 8th Medium-term Plan on the Environment (FY2022-2025) Intensify global warming countermeasures and biodiversity conservation activities ＜Greenhouse gas emission reduction targets＞
Slide 21: TOPICS: Battery pack defect analysis service
TOPICS 1 [For the first time in Japan] Launched a service for analyzing defects of battery packs and modules installed in automobiles ・In November 2022, ESPEC launched a service for analyzing defects of automotive rechargeable battery packs and modules installed in automobiles at the ESPEC Battery S
Slide 22: TOPICS: SDGs agreement and biodiversity conservation
TOPICS 2 Signed an agreement for promoting SDGs Biodiversity conservation activities with the University of Hyogo “ESPEC’s 50-Year Forest” tree-planting festival ・In August 2022, ESPEC signed an agreement with the ・Launched forest creation for “ESPEC’s 50-Year Forest” using the “corporate forests” s
Slide 23: External Recognition
External Recognition November, 2022 ・Rated 4 stars in the Nikkei’s 4th SDGs Management Survey ・Rated 3.5 stars in Nikkei’s 6th Smart Work Management Survey October, 2022 ・Ranked 155th in the Nikkan Kogyo Shimbun’s 18th Corporate Power Ranking (sponsored by the Ministry of Economy, Trade and Industry
Slide 24: Forward-looking statements and inquiries
These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f
Slide 25: Quality is more than a word
Quality is more than a word ESOEC ESPEC CORP.