Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — 1H FY2023 Earnings Presentation
31 slides from Nihon Dempa Kogyo's earnings presentation, Nov 17, 2023
Slide 1: First-Half Results for Fiscal 2023 (Ending March 31, 2024)
First-Half Results for Fiscal 2023 (Ending March 31, 2024) November 17, 2023 Nihon Dempa Kogyo Co., Ltd. Note: Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements a
Slide 2: Contents
Contents 1. First-Half Results for FY2023 (Ending March 31, 2024) 2. Full-Year Outlook for FY2023 (Ending March 31, 2024) 3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Presented by Hiromi Katoh, Representative Director and President Copyright © 2023 Nihon De
Slide 3: Summary of Financial Results
1. First-Half Results for FY2023 (Ending March 31, 2024) Summary of Financial Results ◼ Net sales fell 6.9% YoY, and operating income declined 53.9% YoY. (Million yen) 1H FY2023 1H FY2022 1H FY2023 YoY Forecasts Results Results (as of May 11) Net sales 26,501 24,665 -1,836 25,000 Operating Income 4,
Slide 4: Sales by Application (YoY)
1. First-Half Results for FY2023 (Ending March 31, 2024) Sales by Application (YoY) ◼ Sales for automotive electronics increased, but sales for industrial equipment, mobile communications, and consumer fell. Net Sales (Billion yen) Factors of increase/decrease 1H FY2022 1H FY2023 YoY Volume fell YoY
Slide 5: Operating Income—Analysis of Changes from FY2022
1. First-Half Results for FY2023 (Ending March 31, 2024) Operating Income—Analysis of Changes from FY2022 ◼ Net income fell for various reasons, including a decline in net sales, increase in labor costs and DX expenses, and decrease in inventory, etc. (Billion yen) Impact of improvement in terms for
Slide 6: Financial Results (Quarterly)
1. First-Half Results for FY2023 (Ending March 31, 2024) Financial Results (Quarterly) ◼ Both net sales and operating income rose in the second quarter of FY2023 after bottoming out. Net Sales Operating Income (excluding temporary factors) Operating income (excluding temporary factors) (Billion yen)
Slide 7: Net Sales (by Main Application)
1. First-Half Results for FY2023 (Ending March 31, 2024) Net Sales (by Main Application) ◼ Net sales for automotive electronics rose in the second quarter of FY2023 as inventory adjustments at customers progressed. ◼ Net sales for mobile communications increased because major smartphone manufacturer
Slide 8: Financial Position
1. First-Half Results for FY2023 (Ending March 31, 2024) Financial Position ◼ Financial position improved with shareholders’ equity ratio rising to 39.1% as of the end of September 2023. Received ¥5.0 billion Raised approx. ¥4.0 billion by the investment through public offering carried out in May is
Slide 9: Contents
Contents 1. First-Half Results for FY2023 (Ending March 31, 2024) 2. Full-Year Outlook for FY2023 (Ending March 31, 2024) 3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Copyright © 2023 Nihon Dempa Kogyo All Rights Reserved 9
Slide 10: Consolidated Financial Forecast—Downward Revision to Initial Forecasts
2. Full-Year Outlook for FY2023 (Ending March 31, 2024) Consolidated Financial Forecast—Downward Revision to Initial Forecasts ◼ Lowered net sales forecast ¥3.9 billion and operating income forecast ¥1.8 billion from initial forecasts. ◼ The yen exchange rate against the dollar for the second half o
Slide 11: Consolidated Financial Forecast (Year on Year)
2. Full-Year Outlook for FY2023 (Ending March 31, 2024) Consolidated Financial Forecast (Year on Year) ◼ Full-year FY2023 net sales are forecast to fall 6% YoY and operating income to decrease 54%. FY2023 FY2022 Full- (Million yen) Full-year YoY Year Result 1H Results 2H Forecast Forecast Net Sales
Slide 12: Sales Forecast by Application
2. Full-Year Outlook for FY2023 (Ending March 31, 2024) Sales Forecast by Application ◼ Sales are expected to increase YoY for automotive electronics but to decline for industrial equipment, mobile communications, and consumer products. FY2022 FY2023 Forecast YoY change Factors of YoY increase/decre
Slide 13: Operating Income – Analysis of Changes from FY2022
2. Full-Year Outlook for FY2023 (Ending March 31, 2024) Operating Income – Analysis of Changes from FY2022 ◼ Net income forecast to fall for various reasons, including a decline in net sales, increase in labor costs and DX expenses, and decrease in inventory, etc. Product inventory End of Mar. 2022:
Slide 14: Capital Investment
2. Full-Year Outlook for FY2023 (Ending March 31, 2024) Capital Investment ◼ FY2023 capital investments are forecast to total ¥4.5 billion (compared to initial plan of ¥5.1 billion) (Some infrastructure investments were postponed until next fiscal year) (Billion yen) 5.0 4.5 4.5 4.0 Systems, etc. 3.
Slide 15: Contents
Contents 1. First-Half Results for FY2023 (Ending March 31, 2024) 2. Full-Year Outlook for FY2023 (Ending March 31, 2024) 3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Copyright © 2023 Nihon Dempa Kogyo All Rights Reserved 15
Slide 16: Position of the Medium-Term Management Plan (FY2022-FY2024)
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Position of the Medium-Term Management Plan (FY2022-FY2024) ◼ Through the Medium-Term Management Plan, we are preparing to generate sustainable growth with an eye toward 2030. Medium-Term Management Plan (FY2022–
Slide 17: Medium-Term Management Plan Management Targets
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Medium-Term Management Plan Management Targets ◼ System investment (promoting DX) and infrastructure investments (updating equipment) are expected to be greater than initially planned. ◼ Therefore, expected capit
Slide 18: Automotive Electronics
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Automotive Electronics ◼ Production and sales of vehicles with ADAS equipment and EVs will grow →Increase in number of crystal devices used in each vehicle Connected car C Connected Telematics, V2X (networks exte
Slide 19: Mobile Communications
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Mobile Communications ◼ With products equipped with photolithography blanks, NDK will target the demand for higher frequency and miniaturization activated with the penetration of 5G smartphones. Equipped in 5G A
Slide 20: Industrial Equipment
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Industrial Equipment Optical telecom (including switches and routers) DU Base stations ◼ OCXO (25×22mm) switch/router RU ◼ OCXO (7x5mm) Meet growing demand by Optical telecom supplying small base stations, data c
Slide 21: Vision 2030 Structure
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Vision 2030 Structure Vi s i o n 2 0 3 0 Creating the Future of Digital Society through Frequencies Social Value Economic Value Human Resource Value Support digital Explore new Nurture human technology to realize
Slide 22: Vision 2030 Management Targets
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Vision 2030 Management Targets ◼ The issues are expanding into new markets and creating new business models. 100.0 billion yen ▼ Net sales New Domains Explore new domains with a focus on the post-5G era, beyond-5
Slide 23: Explore and Develop New Domains
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Explore and Develop New Domains Develop and expand new Post-5G era businesses based on New domains Society-5.0 ICT field to explore existing businesses and technologies Beyond-5G Medicine Healthcare/Caretech and
Slide 24: Explore and Develop New Domains (Post-5G Communication)
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Explore and Develop New Domains (Post 5G Communication) ■ Post-5G communication 極限時刻同期基盤の構築に向けて Building a foundation for highly accurate time synchronization DCXO, a digitally controlled oscillator Moving to mee
Slide 25: Explore and Develop New Domains (Medicine and Space)
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Explore and Develop New Domains (Medicine and Space) ◼ Medicine ◼ Space Society faces the “2040 problem,” when Outgas sensors the elderly population of Japan reaches about 40.00 million people. NDK is participati
Slide 26: DX Strategy to Achieve Vision 2030
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 DX Strategy to Achieve Vision 2030 Vision 2030 Create the future digital society through frequencies Net sales of ¥100.0 billion and operating income margin of 20% Management issues regarding achieving Vision 203
Slide 27: Differentiate the Company in Three Fields: Production, Engineering, and Customers
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 Differentiate the Company in Three Fields: Production, Engineering, and Customers ◼ Reinforce differentiation in the three fields of production, engineering, and customers through a four-stage process. Differenti
Slide 28: DX Investment Plans
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 DX Investment Plans ◼ Plan to invest a total of ¥5.3 billion* from FY2023 through FY2026 *Investment amount is the sum of the amount recorded as assets and (Billion yen) amount recorded as expenses: Projected amo
Slide 29: To achieve a sustainable society
3. Medium-Term Management Plan (FY2022–FY2024) Progress and Movement toward Vision 2030 To achieve a sustainable society Progress with initiatives to achieve a sustainable society Environment ◼ Calculate total GHG emissions (scope 1, 2 and 3) for whole group (Scope 1 + Scope 2 = 61,000 tons, Scope 3
Slide 30: Final Comments
Final Comments ◼ Advancing efforts to strengthen the company's foundations for sustainable growth Current location Global financial crisis Slump in business Preparation period for Toward sustainable growth COVID-19 performance sustainable growth 2010 2015 2020 2022 2024 2030 Initiatives for Vision 2
Slide 31: Thank you everyone for your time
Thank you everyone for your time November 17, 2023 Nihon Dempa Kogyo Co., Ltd. Copyright © 2023 Nihon Dempa Kogyo All Rights Reserved 31