Nippon Carbide Industries Company,incorporated · TSE:4064
Nippon Carbide Industries Company,incorporated — FY2023 Earnings Presentation
36 slides from Nippon Carbide Industries Company,incorporated's earnings presentation, May 13, 2024
Slide 1: Explanation of Financial Results for the Year Ended 31 March 2024
Explanation of Financial Results for the Year Ended 31 March 2024 May 13, 2024
Slide 2: Summary of Financial Results for the Year Ended 31 March 2024
Summary of Financial Results for the Year Ended 31 March 2024
Slide 3: Summary [Consolidated Statements of Income]
Summary [Consolidated Statements of Income] • In the electronics and functional products business, shipments of products for semiconductors and electronic components declined due to the sluggish electronics market since the second half of the year before the last. • In the films and sheetings produc
Slide 4: Quarterly performance trends
Quarterly performance trends • Sales declined YoY in 1Q/2Q, but increased in 3Q/4Q • Operating profit decreased YoY until 3Q, but increased in 4Q Unit: Million yen 4
Slide 5: Analysis of factors leading to changes in operating profit FY2023 vs FY2024
Analysis of factors leading to changes in operating profit FY2023 v.s. FY2024 YOY decline in profit of 412 million yen Unit: Million yen 5
Slide 6: Performance by segment
Performance by segment Unit: Million yen Year ended Year ended Year-on-year comparison March 31, 2023 March 31, 2024 Year-on-year changes Year-on-year changes Results Results (amount) (percentage) Electronics and Net sales 18,128 16,545 ▲ 1,582 ▲8.7% Functional Products Operating profit 1,458 643 ▲
Slide 7: Situation by segment: Electronics & Functional Products Business
Situation by segment Electronics & Functional Products Business Unit: Million yen Year ended Year ended Year-on-year comparison March 31, 2023 March 31, 2024 Year-on-year Year-on-year Results Results changes (amount) changes (percentage) Net sales 18,128 16,545 ▲ 1,582 ▲8.7% Functional chemicals 3,6
Slide 8: Situation by segment: Films & Sheetings Products Business
Situation by segment Films & Sheetings Products Business Unit: Million yen Year ended Year ended Year-on-year comparison March 31, 2023 March 31, 2024 Year-on-year Year-on-year Results Results changes (amount) changes (percentage) Net sales 16,603 17,498 895 +5.4% Films 1,445 1,330 ▲ 115 ▲8.0% Stick
Slide 9: Situation by segment: Construction Materials Related Business
Situation by segment Construction Materials Related Business Unit: Million yen Year ended Year ended Year-on-year comparison March 31, 2023 March 31, 2024 Year-on-year Year-on-year Results Results changes changes (amount) (percentage) Net sales 7,589 7,112 ▲ 476 ▲6.3% Operating profit 258 272 13 +5.
Slide 10: Situation by segment: Engineering Business
Situation by segment Engineering Business Unit: Million yen Year ended Year ended Year-on-year comparison March 31, 2023 March 31, 2024 Year-on-year Year-on-year Results Results changes changes (amount) (percentage) Net sales 5,084 2,491 ▲ 2,593 ▲51.0% Operating profit 52 ▲ 136 ▲ 188 - Decreased inc
Slide 11: [Summary] Consolidated balance sheets
[Summary] Consolidated balance sheets Unit: Million yen Year ended March 31, 2023 Year ended March 31, 2024 End-to-end ratio Cash and deposits 10,906 13,442 2,536 Notes and accounts receivable - trade 12,211 12,526 314 Inventory 9,955 9,368 ▲ 586 Tangible fixed assets/intangible fixed assets 26,293
Slide 12: Consolidated statements of cash flows
Consolidated statements of cash flows Free cash flow was 2,935 million yen Unit: Million yen Year ended March 31, 2023 Year ended March 31, 2024 Year-on-year comparison Profit before income taxes 1,221 1,797 576 Depreciation 1,991 2,014 22 Net cash provided by (used in) operating activities 791 422
Slide 13: Capital investment, depreciation and R&D
Capital investment, depreciation and R&D As a result of a review of the capital investment plan in line with changes in the business environment, particularly in the electronics strategic market, capital investment decreased by 1,857 million yen compared to the previous year. Unit: Million yen Major
Slide 14: Forecast of full-year results for the year ending 31 March 2025
Forecast of full-year results for the year ending 31 March 2025
Slide 15: Forecast of consolidated results for the year ending March 2025
Forecast of consolidated results for the year ending 31 March 2025 The sales forecast is 50.0 billion yen, an increase of +15.7% on the previous year, and the operating profit forecast is 2.1 billion yen, an increase of +147.3% on the previous year. Unit: Million yen Year ended March 31, 2024 Year e
Slide 16: Analysis of factors leading to changes in operating profit FY2024 vs FY2025
Analysis of factors leading to changes in operating profit FY2024 vs FY2025 Increase in profit of 1,251 million yen compared to the previous year Unit: Million yen 16
Slide 17: Business outlook by segment
Business outlook by segment Functional Increase in shipments due to recovery in semiconductor and ＋ electronic component markets chemicals Electronics and Functional Increase in shipments of adhesives for optical-related fields due to ＋ Functional polymers sales expansion in the Chinese market Produ
Slide 18: Forecasts by segment
Forecasts by segment Unit: Million yen Year ended March Year ended March Year-on-year changes 31, 2024 31, 2025 Performance Year-on-year changes Year-on-year changes Results (amount) (percentage) forecasts Electronics and Net sales 16,545 19,100 2,555 +15.4% Functional Products Operating profit 643
Slide 19: State of Progress of Medium-term Management Plan NCI KIRARI 2025
State of Progress of Medium-term Management Plan “NCI KIRARI 2025”
Slide 20: State of Progress Financial Targets
State of Progress Financial Targets We will try to achieve our FY2024 performance forecasts and return to a growth trajectory by ensuring that the key issues are addressed, but the achievement of the FY2025 financial targets may be delayed, depending on the timing of market recovery and other factor
Slide 21: State of Progress Strategic market sector Sales
State of Progress Strategic market sector Sales Unit: 1 billion yen 21
Slide 22: State of Progress Strategic market sector Operating profit
State of Progress Strategic market sector Operating profit Operating profit in strategic market sector in FY2024 is forecast to be 2.8 billion yen. The key to achieving the operating profit target for FY2025 is (i) further expansion of operating profit in strategic market sector, and (ii) performanc
Slide 23: Major challenges and actions
Major challenges and actions Segment Sector Major challenges Actions to be taken towards 2025 • Expanding sales of high value-added products, • Identifying new needs through technical mainly chemicals for semiconductor materials. exchange with customers. Strategic Electronics • Expanding sales of se
Slide 24: Capital investment
Capital investment Review capital investment plans in line with changes in the business environment, particularly in relation to the electronics strategic markets Major capital investment Capital investment in strategic markets sector reduction projects Unit: 1 billion yen • Capital investment in pr
Slide 25: Research and development
Research and development Plans for increasing both R&D expenditure and number of R&D personnel Unit: Number of personnel Unit: 1 billion yen 25
Slide 26: Percentage of new product sales
Percentage of new product sales Percentage of new product sales in strategic market sector was 30% in FY2023 (3.7 billion yen). Aim for 31% (5.2 billion yen) in FY2024 and 35% or more (9.0 billion yen) in FY2025. Unit: 1 billion yen 26
Slide 27: Initiatives to achieve management with an awareness of cost of capital and share price
Initiatives to achieve management with an awareness of cost of capital and share price
Slide 28: Efforts to improve PBR (1)
Efforts to improve PBR (1) Recognizing that improving PBR is an important management issue, the company will promote measures from both ROE and PER perspectives. PBR ＝ ROE × PER PBR improved from 0.4 in FY03/2023 to 0.54 in FY03/2024. ROE ⚫ Growing business by expanding sales of growth drivers and c
Slide 29: Efforts to improve PBR (2)
Efforts to improve PBR (2) Recognizing that improving PBR is an important management issue, the company will promote measures from both ROE and PER perspectives. PBR ＝ ROE × PER PBR improved from 0.4 in FY03/2023 to 0.54 in FY03/2024. PER ⚫ Growing business by expanding sales of growth drivers and c
Slide 30: TOPICS
TOPICS ey)
Slide 31: TOPICS (1) Growth drivers
TOPICS (1) Growth drivers Development and sale of environmentally friendly decorative moulded products. The 3D-emblem with a metallic sheen is one of our environmentally friendly decorative moulded products. Furthermore, we have developed a new product that has never existed before, using ‘light man
Slide 32: TOPICS (2) Growth drivers
TOPICS (2) Growth drivers Vacuum packaging machine by Nishihara Manufacturing equipped with our non- contact operating device Our M-Beamer non-contact operating device will be installed in the vacuum packaging machines of Nishihara Manufacturing. As the operation panel is displayed floating in the a
Slide 33: Annexed Materials
Annexed Materials ey)
Slide 34: Transition of consolidated results
Transition of consolidated results D/E Ratio Unit: Times ROE Net sales 46,699 42,231 47,003 44,008 43,231 50,000 Operating profit 2,557 2,388 3,192 1,261 849 2,100 Operating profit/net sales% 5.5% 5.7% 6.8% 2.9% 2.0% 4.2% Ordinary profit 2,817 2,852 4,055 1,902 1,573 2,200 Ordinary profit/net sales%
Slide 35: Shareholder Return Policy
Shareholder Return Policy Aims to maintain a stable dividend with a payout ratio of at least 30%. Special Dividend Medium-term management plan period 35
Slide 36: For questions and inquiries from analysts/institutional investors
For questions and inquiries from analysts/institutional investors, please contact Public Relations & Investor Relations Group Corporate Planning Department Please contact us via e-mail: prir@carbide.co.jp [Notes related to future prospects] This material is intended solely for the purpose of providi
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