Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — Q3 2019 Earnings Presentation
22 slides from Nissha Co.ltd's earnings presentation, Nov 8, 2019
Slide 1: Financial Results for FY2019.12 Q3
Financial Results for FY2019.12 Q3 Ended September 30, 2019 November 8, 2019 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Highlights
Highlights FY2019.12 Q3 result l In spite that the demand for Devices expanded, the total demand was lower than expected (1USD=JPY106) l Net sales 52.3 billion yen, EBITDA 3.8 billion yen, Operating profit 1.4 billion yen, Ordinary profit 1.3 billion yen, Net profit 5.4 billion yen l Devices: Lower
Slide 3: FY2019.12 Q3 (9 months) Results
FY2019.12 Q3 (9 months) Results (Millions of JPY) FY2018.12 FY2019.12 Jan. – Sep. Jan. – Sep. YoY Results Results Net Sales 140,860 125,409 -11.0% Industrial Materials 34,518 35,119 +1.7% Devices 80,041 66,723 -16.6% Medical Technologies 16,015 18,207 +13.7% ＊ Information and Communication 9,961 5,0
Slide 4: FY2019.12 Q3 (3 months) Results
FY2019.12 Q3 (3months) Results (Millions of JPY) FY2019.12 FY2019.12 FY2019.12 Q1 Q2 Q3 QoQ Result Result Result Net Sales 34,964 38,136 52,309 +37.2% Industrial Materials 11,672 11,882 11,565 -2.7% Devices 15,072 18,394 33,257 +80.8% Medical Technologies 6,145 6,140 5,922 -3.6% Information and Comm
Slide 5: Industrial Materials: Demand decrease for Chinese market
Industrial Materials Demand decrease for Chinese market, causing lower operation in the domestic factory Net sales trend by application (by quarter) （Millions of JPY) 25,000 ■Sustainable Packaging Materials (Metallized paper) ■Decoration (Others) ■Decoration (Mobility (Automotive)) 20,000 15,000 12,
Slide 6: Industrial Materials
Industrial Materials Japan Europe l Lower factory operation due to l Flat demand for automotive lower demand from China l Market share extension for North and Central metallized paper (Sustainable Packaging Materials) America l Robust demand for automotive China and Asia l Profit improvement continu
Slide 7: Devices
Devices In spite that the demand expanded overall, the demand for smartphones was lower than expected Net sales trend by application (by quarter) ■Portable game players, Industrial equipment, Mobility (Automotive), Gas sensors and others （Millions of JPY) ■Smartphones, Tablet devices and others 50,0
Slide 8: Medical Technologies
Medical Technologies Robust demand continues Net sales trend by application (by quarter) （Millions of JPY) 10,000 ■Business media ■Medical Devices (Own brand) ■Medical Devices (Contract manufacturing) 7,500 6,336 6,145 6,140 6,028 5,922 4,880 5,107 5,000 2,500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2018.12 FY2019
Slide 9: Information and Communication
Information and Communication Seasonal demand decrease in Q3 Net sales trend by application (by quarter) （Millions of JPY) ■Others 8,000 ■Publication printing ■Commercial printing Business restructuring January 7, 2019 6,000 3,873 3,974 4,000 3,121 2,967 1,977 2,000 1,624 1,462 0 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 10: Revision to the Business Forecast
Revision to the Business Forecast (Millions of JPY) Previous Forecast (Aug. 6) Revised Forecast (Nov. 8) FY2019.12 FY2019.12 FY2019.12 FY2019.12 FY2019.12 FY2019.12 Plan H1 H2 Plan H1 H2 Results Plan Results Plan Net sales 180,000 73,100 106,900 173,000 73,100 99,900 Industrial Materials 48,000 23,5
Slide 11: Update on The 6th Medium-term Business Plan
Update on The 6th Medium-term Business Plan (2018-2020) CONFIDENTIAL AND PROPRIETARY 11
Slide 12: Medium-term Vision: Balanced Business Portfolio
Slide from FY2019.12 Q2 Presentation Medium-term Vision: Aim for “Completion of Balanced Management in Our Business Portfolio” IT non-IT l Profitability and l Growth through M&A efficiency Sustainable Mobility IT Medical Devices Packaging Materials (Automotive) CONFIDENTIAL AND PROPRIETARY 12
Slide 13: Actions for IT and non-IT growth
Slide from FY2019.12 Q2 Presentation 3 actions Previous Present Actions assumption l Decreasing demand l High seasonal 1. Save of fixed IT l Increasing demand fluctuation in cost demand ✔2. Encashment of Capital for l Generated out l Not enough non-business investment of IT only from IT properties l
Slide 14: Action 2: Encashment of non-business properties
Action 2︓ Encashment of non-business properties Capital for the growth strategy for non-IT (M&A) l Operating cash flow out of IT business is decreasing l Financing (Debt) ✔l Encashment of non-business properties: in scale of 10 billion yen by 2020 end Completed About JPY 5 billion by sale of 1. Unus
Slide 15: Action 3: Attentive M&A target areas
Action3: Attentive M&A Target areas: 3 M&A to be completed (Q4) Medical ✔ Medical Devices To enrich product lineup To extend design and ✔ DDS – New dosage form development capabilities lCardiology lAcute care lConsumables Sustainable ✔ Share extension for metallized paper New sustainable packaging m
Slide 16: Acquisition of Advant Medical in Ireland
Medical Devices Medical Technologies Geographical extension in Europe for contract manufacturing Acquisition of Advant Medical in Ireland (1EURO=JPY120) l Advant Medical is a global leading manufacturer Advant Medical Limited for dispensers for cardiovascular catheters and guide wires 15.5 million E
Slide 17: Market entry in DDS: Zonnebodo Pharmaceutical
DDS （New business development） Market entry in DDS Acquisition of Zonnebodo Pharmaceutical in Japan l Zonnebodo possesses long-seller products Zonnebodo Pharmaceutical Co., Ltd. (Tinnitus soother, Tooth decay prevention, etc) about 1,051 million JPY Net sales l Gain of business base for pharmaceutic
Slide 18: Development of film type pharmaceuticals
DDS （New business development） Development of film type of pharmaceuticals by integration of our technologies and Zonnebodo’s manufacturing & sales expertise for pharmaceuticals l Target for entry in Japanese market of film type of pharmaceuticals by utilization of our technologies at Zonnebodo l Se
Slide 19: Leading position in metallized paper market
Sustainable Packaging Materials Industrial Materials Securing of the leading position in metallized paper market by share extension AR Metallizing (Belgium) to acquire Eurofoil Paper Coating in Germany, a metallized paper manufacturer (1EURO=JPY120) l Profitability improvement expected by Eurofoil P
Slide 20: Sale of unused fixed assets and attentive M&A
Sale of unused fixed assets and implementation of attentive M&A Ex-Yachiyo factory (Chiba) lUnused fixed assets JPY 0 JPY 0 Sale Net sales EBITDA l Investment about 5.5 billion JPY, ROIC about 11% Profit on sale *ROIC on cash basis about 5.0 billion JPY = EBITDA * (1-tax rate 30%) / Investment Acqui
Slide 21: Reference: Capital investment, Depreciation, M&A, R&D
Reference: Capital investment, Depreciation, M&A investment, Amortization of goodwill, R&D （Million of JPY） FY2019.12 FY2019.12 FY2019.12 Q1 Q2 Q3 results results results Capital investment 1,602 2,187 2,524 Depreciation 1,943 2,003 1,983 M&A investment - - - Amortization of *2018/12期より国内グループ会社の減価 g
Slide 22: Confidentiality notice
This document contains confidential information and all rights regarding the document belong to Nissha Group. Therefore, any disclosure and/or leakage of the document to any third parties other than recipients of the documents, and copy, transfer and/or citation of the document without the prior aut