Nihon Tokushu Toryo Co., Ltd. · TSE:4619
Nihon Tokushu Toryo — FY2023 Earnings Presentation
50 slides from Nihon Tokushu Toryo's earnings presentation, Jun 6, 2023
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2023
Financial Results Briefing for the Fiscal Year Ended March 31, 2023 June 6, 2023 NIHON TOKUSHU TORYO CO., LTD. (Stock Exchange Code: 4619, Tokyo Stock Exchange Prime Market) 1 Copyright © NIHON TOKUSHU TORYO CO., LTD. All Rights Reserved.
Slide 2: Contents
Contents 1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024 3. Overview of the Medium-Term Management Plan (Performance Targets) 4. Overview of the Company’s Businesses 5. Future Growth Strateg
Slide 3: Summary of Financial Results: Consolidated Statements of Income
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (1) Summary of Financial Results for the Fiscal Year Ended March 31, 2023 1) Consolidated Statements of Income (Million yen) FY3/2022 FY3/2023 YoY change Actual Actual results Ratio results Ratio Amount % Net sales 54,779 – 60
Slide 4: Trends of Consolidated Financial Results (Past Seven Fiscal Years)
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (1) Summary of Financial Results for the Fiscal Year Ended March 31, 2023 2) Trends of Consolidated Financial Results (Past Seven Fiscal Years) Ordinary profit and share of profit of entities Net sales accounted for using equi
Slide 5: Quarterly Results for the Past Three Fiscal Years
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (1) Summary of Financial Results for the Fiscal Year Ended March 31, 2023 3) Trends of Consolidated Financial Results (Quarterly Results for the Past Three Fiscal Years) Automotive products business ■ Net sales (Million yen) P
Slide 6: Composition of Net Sales (By Segment/Main Product)
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (1) Summary of Financial Results for the Fiscal Year Ended March 31, 2023 4) Composition of Net Sales (By Segment/Main Product) Paints & coatings business Automotive products business Interior, exterior, and roof paints : 1.9%
Slide 7: Results by Segment: Paints & coatings-related business
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (2) Results by Segment 1) Paints & coatings-related business Net sales 20,565 Net sales 19,351 · Paints & coatings: up 7.1% YoY Sales of paints for buildings and structures, especially waterproofing Profit materials and floor
Slide 8: Factor analysis of changes in profit: Paints & coatings
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (2) Results by Segment 1) Paints & coatings-related business Factor analysis of changes in profit 250 (577) (Million yen) 373 7 (30) (0.9) (137) (113) FY3/2022 FY3/2023 Net sales increased increased Raw material costs improved
Slide 9: Results by Segment: Automotive products-related business
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (2) Results by Segment 2) Automotive products-related business Net sales Net sales 40,157 35,412 · Net sales increased mainly in sound- absorbing and sound-insulating materials and coatings due to a recovery in Profit 1,737 au
Slide 10: Factor analysis of changes in profit: Automotive products
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (2) Results by Segment 2) Automotive products-related business Factor analysis of changes in profit 1,872 (Million yen) 140 (737) 21 1,737 (418) (242) 1,100 FY3/2022 FY3/2023 Net sales increased increased Raw material costs wo
Slide 11: Consolidated Balance Sheets
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (3) Consolidated Balance Sheets (Million yen) FY3/2022 FY3/2023 YoY change Actual Actual Ratio Ratio Amount results results Current assets 31,857 39.9 36,013 43.9 +4,156 Non-current assets 47,934 60.1 46,020 56.1 (1,914) Prope
Slide 12: Consolidated Statements of Cash Flows
1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (4) Consolidated Statements of Cash Flows 6,198 (1,588) (2,818) CF from 130 10,853 investing 8,931 activities CF from financing Effect of exchange CF from activities rate operating change activities Cash and cash equivalents C
Slide 13: Consolidated Financial Results Forecast for FY Ending March 31, 2024
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (1) Summary of Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (Million yen) FY3/2023 FY3/2024 YoY change Actual Ratio Forecast Ratio Amount % results Net sales 60,738 – 62,500 – +1,
Slide 14: FY3/2024 Forecast Results by Segment
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (2) Results by Segment Net sales: Demand is recovering, especially in Japan. We will continue to review selling prices. Profit: Affected by soaring raw materials and energy prices. Paints & coatings-related business
Slide 15: Contracted work (large-scale renovation for condominiums)
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (2) Results by Segment (Paints & coatings-related business) ■ Contracted work (large-scale renovation work for condominiums) A subsidiary of the Company, NITTOKU MENTE, undertakes large-scale renovation and repair wo
Slide 16: Capital Expenditures and Depreciation
2. Overview of Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (3) Capital Expenditures and Depreciation 1) Capital expenditure (Construction Basis) (Million yen) Capital expenditure 12,000 · Large-scale investments will 9,393 decrease. 8,000 6,295 · We will continue to review n
Slide 17: Medium-Term Management Plan Performance Targets
3. Overview of the Medium-Term Management Plan (Performance Targets) Performance Targets (Final fiscal year: FY3/2025) Net sales ¥65.0 bn. / Ordinary profit ¥6.1 bn. / ROE 10.0% or more Net sales Net sales 65,000 Ordinary profit (Million yen) (Million yen) 59,417 60,738 60,000 57,191 12,000 54,779 5
Slide 18: Profit Return
3. Overview of the Medium-Term Management Plan (Performance Targets) Profit Return Based on stable dividends (stable dividends and extra), we made a decision by comprehensively taking into account such factors as the enhancement of funds for strategic investments, financial position and profit level
Slide 19: Main Products for Paints & Coatings-related Business
4. Overview of the Company’s Businesses (1) Main Products for Paints & Coatings-related Business> ■ Paints for buildings and structures Thermal insulating paints protect the We develop and sell a variety of functional paints and coatings, entire building from heat, including roofs, including interio
Slide 20: Main Products for Paints & Coatings-related Business (contracted work)
4. Overview of the Company’s Businesses (1) Main Products for Paints & Coatings-related Business> ■ Contracted work (large-scale renovation of housing complexes) A subsidiary of the Company, NITTOKU MENTE, undertakes large-scale renovation and repair work for condominiums and other properties. NITTO
Slide 21: Main Products for Automotive Products-related Business
4. Overview of the Company’s Businesses RIETER ULTRA LIGHT TM is a registered trade mark (2) Main Products for Automotive of Autoneum Management AG. Automotive Products-related Business sound- absorbing ■ Sound-absorbing & material sound-insulating “Sound- absorbing materials duct” Automotive sound-
Slide 22: Vibration-damping and Rustproof Materials
4. Overview of the Company’s Businesses (2) Main Products for Automotive Products-related Business ■ Vibration-damping and Typical sections to which automotive Rustproof Materials rustproof materials and sealants are applied “NT Guard Coat” (PVC-based) Coating-type vibration-damping material “NT Dam
Slide 23: Basic Strategies of the Medium-Term Management Plan
5. Future Growth Strategy Basic Strategies of the Medium-Term Management Plan (FY3/2022 to FY3/2025) (1) Build a stable revenue base for domestic businesses (2) Reinforce “Nittoku, the technical specialist” and develop new technologies and products (3) Strengthen global development (4) Promote digit
Slide 24: Build a stable revenue base for domestic businesses
5. Future Growth Strategy (1) Build a stable revenue base for domestic businesses ■ Business restructuring (Reallocation of resources to growing departments and consolidation of unprofitable departments) Terminate and consolidate the automotive products businesses at the Hiratsuka Plant, aiming to b
Slide 25: Build a stable revenue base: Automotive Products
5. Future Growth Strategy (1) Build a stable revenue base for domestic businesses Automotive Products ■ Improve productivity through new production methods and streamlining of production processes (improve production capacity and investment efficiency of dash insulators, our main products) We have a
Slide 26: Reinforce Nittoku, the technical specialist
5. Future Growth Strategy (2) Reinforce “Nittoku, the technical specialist” and develop new technologies and products Paints and Coatings ■ Urethane waterproofing materials (products that do not contain specified chemical substances, MOCA and lead catalyst (2023)) Automotive Products (Parts) ■ Formu
Slide 27: New products for BEVs and ease of disassembly
5. Future Growth Strategy (2) Reinforce “Nittoku, the technical specialist” and develop new technologies and products Automotive Products (Parts) ■ Develop new products that meet needs for BEVs and ease of disassembly (soundproof products for the mid-frequency range) · Start development of products
Slide 28: Coatings for battery
5. Future Growth Strategy (2) Reinforce “Nittoku, the technical specialist” and develop new technologies and products Automotive Products (Coatings) ■ Develop new products, coatings for battery (Start the development of coatings for BEV battery for purposes of thermal management and sealing) · Respo
Slide 29: Strengthen global development
5. Future Growth Strategy (3) Strengthen global development Paints and Coatings ■ Develop new overseas markets Strengthen sales of high-value-added products that meet diverse needs, including waterproofing materials, floor coating materials, and thermal insulating paints, mainly to China and Southea
Slide 30: Promote digital transformation (DX)
5. Future Growth Strategy (4) Promote digital transformation (DX) Paints and Coatings ■ Improve operational efficiency using AI (examination of paints formulation) Incorporate AI into the database of existing technologies to streamline development processes. Utilize the reduced man-hours and improve
Slide 31: Promote sustainability management: Paints and Coatings
5. Future Growth Strategy (5) Promote sustainability management Paints and Coatings ■ Expand environmentally conscious products (strengthen and expand thermal insulating paints and other products that contribute to CO2 emissions reduction) 31
Slide 32: Sustainability: Local production for local consumption
5. Future Growth Strategy (5) Promote sustainability management Automotive Products ■ Project promoting local production for local consumption (in collaboration with Chubu Bureau of Economy, Trade and Industry, and Toyota Motor Corporation) As part of promoting circular economy and carbon neutrality
Slide 33: Sustainability: Develop new products
5. Future Growth Strategy (5) Promote sustainability management Automotive Products ■ Develop new products (develop proprietary technologies for synthetic fiber sustainability) · Set a target of completing the commercialization of our patented technology dedicated to synthetic fiber sustainability b
Slide 34: Realize carbon neutrality
5. Future Growth Strategy (5) Promote sustainability management Company-wide ■ Realize carbon neutrality Launch a carbon neutrality project to halve CO2 emissions in fiscal year 2030 and achieve carbon neutrality through all products and corporate activities by 2050. Solar power generation facilitie
Slide 35: Human resources, governance and CSR
5. Future Growth Strategy (5) Promote sustainability management Company-wide ■ Reinforce human resource development and promote job satisfaction reform Reinforce human resource development to support sustainable growth (expand training and educational opportunities) and promote the creation of a vib
Slide 36: Initiatives to improve market capitalization of tradable shares
5. Future Growth Strategy (6) Initiatives to improve market capitalization of tradable shares As of the transition record date (June 30, 2021), the criteria for market capitalization of tradable shares among the criteria for maintaining listing in the prime market were not met. Therefore, we are pro
Slide 37: Reference Materials
Reference Materials 1. Company Profile 2. Trends of Primary Management Indicators 37
Slide 38: Company Profile
1. Company Profile (1) Company Profile ■ Trade name NIHON TOKUSHU TORYO CO., LTD. ■ Head office 3-23-2, Oji, Kita-ku, Tokyo ■ Established June 1, 1929 ■ Share capital 4,753.08 million yen ■ Number of shares issued 23,611,200 shares ■ Consolidated number of employees 1,255 (as of March 31, 2023) * Ex
Slide 39: Officers and Executive Officers
1. Company Profile (2) Officers and Executive Officers (company with a board of auditors) As of March 31, 2023 ■ Directors ■ Auditors Chairman Full-time Auditor Hirokazu Kawana Masahiro Nojima CEO Outside Auditor Yoshiki Takahashi Vice Chairman Jun Taya CFO Outside Auditor Hitoshi Matsufuji Presiden
Slide 40: Corporate Principle and Philosophy
1. Company Profile (3) Corporate Principle and Philosophy Corporate Principle Ingenuity Corporate Philosophy To contribute to society by offering prominent technology and products. To promote the interests of stockholders and respect each employee’s personality. To pursue prosperity in harmony with
Slide 41: Business Policy and Long-term Vision
1. Company Profile (4) Business Policy and Long-term Vision Business Policy Under our corporate principle "Ingenuity", we respond to customers' demands and reliance with unique technology and products. As an active corporation in the world, we organize all of our knowledge and efforts for the develo
Slide 42: Major facilities in Japan
1. Company Profile (5) Major facilities in Japan ■ Head Office and R&D Division/Center ■ Six Plants in Japan Hiratsuka Plant Shizuoka Plant Head Office R&D Center Aichi Plant Hiroshima Plant R&D Laboratory for Paints and Coatings Kyushu Plant Higashi Kyushu Plant 42
Slide 43: History (a): paints & coatings business
1. Company Profile (6) History (a) ■ History of paints & coatings business from its founding 1929: Started with the development of paints for aircraft as a limited partnership company. 1930: Developed the TT METAL PAINT. 1951: Developed the SLECOAT, paints for cement roofs. 1966: Entered the constru
Slide 44: History (b): automotive products business
1. Company Profile (6) History (b) ■ Entering the automotive products business and establishing soundproof material technology 1953: Developed the NITTOKU-UNDERSEAL, automotive soundproof and rustproof coating products). 1964: Launched the MELSHEET, automotive vibration-damping sheets, and began ope
Slide 45: Global Development (Automotive Products-related Business)
1. Company Profile (7) Global Development (Automotive Products-related Business) ■ History 1967 Signed a technology agreement with Matec Holding AG (presently Autoneum Holding AG) 1986 Established UGN, Inc. in the U.S. ▲ Unikeller Institute in Switzerland ▲ United Globe Nippon, Inc. (at the time) (a
Slide 46: Global network (current situation)
1. Company Profile (7) Global Development (Automotive Products-related Business) ■ Global network (current situation) Company accounted for using equity method Consolidated Company accounted for subsidiary using equity method Wuhan Nittoku Autoneum Sound-Proof Tianjin Autoneum Nittoku Automotive UGN
Slide 47: Global partner: Autoneum Holding AG
1. Company Profile (7) Global Development (Automotive Products-related Business) ■ Global partner Autoneum Holding AG 1) Technical alliance with Autoneum (soundproof parts) Alliance over 50 years since 1967 Global strategies Sharing of acoustic analysis technology, evaluation technology, and product
Slide 48: Global partner: EMS-EFTEC
1. Company Profile (7) Global Development (Automotive Products-related Business) ■ Global partner EMS-EFTEC 1) Overview of EMS-EFTEC · A subsidiary of EMS-CHEMIE HOLDING AG EMS Group · High Performance Polymers business of the EMS Group Net sales of approx. CHF 2,000 million* (approx. 270 billion ye
Slide 49: Key Financial Performance Indicators (Consolidated)
2. Key Financial Performance Indicators (Consolidated) FY3/2014 FY3/2015 FY3/2016 FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021 FY3/2022 FY3/2023 Net sales (Million yen) 39,391 39,570 43,812 47,998 57,260 59,417 57,191 48,004 54,779 60,738 Operating profit (Million yen) 1,303 1,629 2,961 3,162 3,286
Slide 50: Contact for IR
Contact for IR Financial & Accounting Division, Operating Planning & Coordination Group, NIHON TOKUSHU TORYO CO., LTD. (Phone: +81-(0)3-3913-6134) This document is for the sole purpose of providing information to investors and is not for the purpose of soliciting investments. The forward-looking sta