Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — FY2023 Earnings Presentation
25 slides from Nissha Co.ltd's earnings presentation, Feb 14, 2024
Slide 1: Financial Results for FY2023.12
Financial Results for FY2023.12 February 14, 2024 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Contents
Contents ⚫FY2023 Results ⚫Plan for FY2024 ⚫Review of the 7th Medium-term Business Plan ©2024 Nissha Group 2
Slide 3: FY2023 Results / Plan for FY2024
FY2023 Results Plan for FY2024 ©2024 Nissha Group 3
Slide 4: Highlights
Highlights FY2023 Results ⚫ Tailwinds ⚫ Industrial Materials: Decoration for Mobility recovered strongly (Japan, US, Europe, China) ⚫ Medical Technologies: CDMO has grown sustainably, profits improved significantly, and executed company acquisitions as growth investment, enhancing precision and oper
Slide 5: FY2023 (Full-year) Results
FY2023 (Full-year) Results (Millions of JPY) 2022 2023 Results Results YoY Net sales 193,963 167,726 -13.5% Industrial Materials 73,558 68,762 -6.5% Devices 79,968 54,862 -31.4% Medical Technologies 32,457 36,011 +10.9% Others 7,978 8,088 +1.4% 9,520 *1 -3,817 - Operating profit Operating profit mar
Slide 6: FY2023 Q4 (3 months) Results
FY2023 Q4 (3 months) Results (Millions of JPY) 2022 Q4 2023 Q3 2023 Q4 Results Results Results YoY QoQ Net sales 52,581 40,879 43,840 -16.6% +7.2% Industrial Materials 18,611 16,983 17,729 -4.7% +4.4% Devices 22,717 13,146 13,877 -38.9% +5.6% Medical Technologies 8,976 8,937 9,755 +8.7% +9.2% Others
Slide 7: Industrial Materials: FY2023 Q4 (3 months) Results
Industrial Materials: FY2023 Q4 (3 months) Results Quarterly net sales and operating profit margin ⚫ Net sales increased QoQ ■Sustainable Materials ●Operating profit margin ⚫ Decoration (Mobility): Mass production (Metallized paper and others) ●Operating profit margin ■Decoration (Home appliances (e
Slide 8: Industrial Materials: Plan for 2024
Industrial Materials: Plan for 2024 ■Sustainable Materials (Metallized paper and others) ⚫ YoY increase in sales and profits ■Decoration (Home appliance and others) ■Decoration (Mobility) ⚫ Demand environment ● Operating profit margin ⚫ Decoration (Mobility): Strong demand to continue ⚫ Sustainable
Slide 9: Devices: FY2023 Q4 (3 month) Results
Devices: FY2023 Q4 (3 month) Results Quarterly net sales and operating profit margin ⚫ Net sales increased QoQ ■Gaming devices, Handheld terminals (logistics ⚫ Tablet devices: Demand increased and related), Mobility, Gas sensors and others shifted to increasing production ■Tablet devices ■Smartphone
Slide 10: Devices: Plan for 2024
Devices: Plan for 2024 ■Gaming devices, Handheld terminals ⚫ YoY increase in sales and profits (logistics related), Mobility, Gas sensors and others ⚫ Demand environment ■Tablet devices ■Smartphones ⚫ Tablet devices: Upgrade of our products and 80,000 ●Operating profit margin demand increase form Q1
Slide 11: Medical Technologies: FY2023 Q4 (3 month) Results
Medical Technologies: FY2023 Q4 (3 month) Results Quarterly net sales and operating profit margin ⚫ Net sales increased QoQ ■Business media ●Operating profit margin ⚫ Medical devices (CDMO) ■Medical devices (Own brand) ⚫ Sales increased compared to Q3 due to ■Medical devices (CDMO) order backlog cle
Slide 12: Medical Technologies: Plan for 2024
Medical Technologies: Plan for 2024 ■Business media ⚫ YoY increase in sales and profits, continuous growth ■Medical devices (Own brand) ⚫ Demand environment ■Medical devices (CDMO) ●Operating profit margin ⚫ Medical devices CDMO: Continuous growth of minimally invasive surgical devices and medical w
Slide 13: FY2024 Plan
FY2024 Plan ⚫Increase in sales and profits in total and in all businesses. (Millions of JPY) 2023 2024 Full-year Full-year H1 H2 YoY Results Plan Plan Plan Net sales 167,726 186,500 91,500 95,000 +11.2% Industrial Materials 68,762 72,000 35,000 37,000 +4.7% Devices 54,862 64,200 32,000 32,200 +17.0%
Slide 14: Dividend
Dividend ⚫Plan to continue annual dividend of 50 yen per share, looking to medium- to long-term growth Annual dividends per share Ordinary dividend (Interim) Ordinary dividend (Year-end) Commemorative dividend Special dividend JPY50 JPY50 JPY50 JPY40 JPY35 25 25 JPY30 JPY30 JPY30 JPY30 5 JPY30 10 35
Slide 15: Acquisition of Treasury Stock
Acquisition of Treasury Stock ⚫Announced on November 9, 2023 ⚫Acquisition completed on February 1, 2024 ⚫ Reasons: To improve shareholder return and capital efficiency Outline Type of shares to be acquired Common stock in Nissha Co., Ltd. Market purchase on the Tokyo Stock Method of acquisition Exch
Slide 16: Capital investment, Depreciation and amortization, R&D
Capital investment, Depreciation and amortization, R&D Depreciation and Capital investment R&D amortization (Millions of JPY) (Millions of JPY) (Millions of JPY) 15,000 15,000 10,000 10,000 10,000 10,000 9,476 9,500 9,258 9,137 5,000 7,559 7,359 7,040 4,500 4,656 5,000 3,973 5,000 2,947 0 0 2021 0 2
Slide 17: Review of the 7th Medium-term Business Plan
Review of the 7 Medium-term Business Plan th ©2024 Nissha Group 17
Slide 18: Demand fluctuates significantly due to drastic changes in the external environment
Demand fluctuates significantly due to drastic changes in the external environment COVID-19 pandemic Russia's invasion into Ukraine Changes Supply constraints in the external Inflation Interest rate hikes in US environment Pent-up demand and EU inventory accumulation Inventory adjustment The 6th Med
Slide 19: Improvement in the average ROE for the three years of the medium-term business plan
Improvement in the average ROE for the three years of the medium-term business plan, with yearly fluctuation ⚫ Average ROE：The 7th Medium-term Business Plan has significantly improved from the 6th Medium-term Business Plan, and the average ROE of the 7th Medium-term Business Plan exceeds our cost of
Slide 20: Reduced IT devices to suppress future demand volatility
Reduced IT devices to suppress future demand volatility ⚫ Strategic exit from smartphones business, causing severe demand fluctuations Net sales ■Smartphones ■Tablet devices (Billions of JPY) 100.0 50.0 0.0 2018 2019 2020 2021 2022 2023 The 6th Medium-term Business Plan The 7th Medium-term Business
Slide 21: Three priority markets for non-IT devices expanded and contributed to profits
Three priority markets for non-IT devices expanded and contributed to profits ■Sustainable Materials ■Mobility CAGR 97.9 97.6 ■Medical 18.1% billion yen billion yen 100,000 ●Operating profit margin* 74.7 billion yen 53.7 58.5 59.4 billion yen billion yen Billion yen 50,000 5.0% 0 0.0% 2018 2019 2020
Slide 22: The 8th Medium-term Business Plan
The 8th Medium-term Business Plan ⚫Accelerating growth in three priority markets for non-IT devices ⚫Improvement and stabilization in profit margins ■Smartphones ■Tablet devices ■Others 300,000 ■Sustainable Materials ■Mobility ■Medical ●Operating profit margin Three priority markets for non-IT devic
Slide 23: The 8th Medium-term Business Plan Investor Conference
The 8th Medium-term Business Plan Investor Conference ⚫Date and time: February 28, 2024 Wed. 11:00-12:30 (JST) ⚫Place: Marunouchi Building Hall & Conference Square Room4 ⚫Agenda ⚫ Strengthening portfolio management to improve corporate value (PBR) ⚫ The 8th Medium-term Business Plan ⚫ Market portfol
Slide 24: (Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2023)
(Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2023) (Millions of JPY) Q1 Results Q2 Results Q3 Results Q4 Results Capital investment 1,817 729 2,273 2,739 Depreciation and 2,250 2,270 2,338 2,278 amortization M&A investment 2,611 359 42 739 R&D 1,095 1,132 1,1
Slide 25: 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