Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — FY2022 Earnings Presentation
29 slides from Nissha Co.ltd's earnings presentation, Feb 14, 2023
Slide 1: Financial Results for FY2022.12
Financial Results for FY2022.12 February 14, 2023 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Contents
Contents ⚫FY2022 Results ⚫Forecast for FY2023 and Prospects for medium-term (-2025) ⚫Shareholder returns ⚫Sustainability Initiatives ©2023 Nissha Group 2
Slide 3: FY2022 Results
FY2022 Results ©2023 Nissha Group 3
Slide 4: FY2022 Results Highlights
FY2022 Results Highlights ⚫Tailwinds ⚫ Reorganization of business portfolio progressed; product demand for Medical Devices, Mobility, and Sustainable Materials grew ⚫ Industrial Materials: Sales increased for decoration, and sales and price increased for Sustainable Materials ⚫ Devices: Touch sensor
Slide 5: FY2022 (Full-year) Results
FY2022 (Full-year) Results （Millions of JPY） 2021 2022 Results Results YoY Net Sales 189,285 193,963 +2.5% Industrial Materials 60,581 73,558 ✔ +21.4% Devices 96,955 79,951 ✔ -17.5% Medical Technologies 24,176 32,457 ✔ +34.3% Others 7,571 7,995 +5.6% Operating profit 17,363 * 9,520 -45.2% Operating
Slide 6: Analysis of change in operating profit (YoY)
Analysis of change in operating profit (YoY) ⚫ Operating profit decreased due to mainly decline in smartphones demand and temporary expenses (Billion yen) 17.3 -5.8 Response to cost soaring by passing on prices and productivity improvement -11.6 ＋1.2 -1.8 ＋1.4 ✔Smartphones ＋8.8 9.5 Strategic shrinki
Slide 7: Industrial Materials
Industrial Materials ⚫Decoration: Continuing demand recovery for mobility from 2022Q2 ⚫Sustainable Materials: Price increased under firm demand Net sales trend ■Sustainable Materials (Metallized paper and others) ■Decoration (Home appliances and others) (Millions of JPY) by application ■Decoration (
Slide 8: Devices
Devices ⚫Demand adjustment phase for tablet devices (after December) ⚫Film-based touch sensors for mobility and gas sensors expanded Net sales trend ■Potable game players, Industrial equipment (logistics related), Mobility, Gas sensors and others by application ■Tablet devices (Millions of JPY) ■Sma
Slide 9: Medical Technologies
Medical Technologies ⚫Continuously demand expanded for medical devices CDMO ⚫Steady demand of surgical instruments for gastroenterology Net sales trend ■Business media ■Medical devices (Own brand) by application ■Medical devices (CDMO) 10,000 8,870 8,976 (Millions of JPY) 7,924 7,500 6,685 6,098 6,2
Slide 10: FY2022 Q4 (3 months) Results
FY2022 Q4 (3 months) Results (Millions of JPY) 2021 Q4 2022 Q3 2022 Q4 Results Results Results YoY QoQ Net sales 43,752 53,165 52,581 +20.2% -1.1% Industrial Materials 16,259 18,777 18,611 ✔ +14.5% -0.9% Devices 18,900 23,644 22,716 ✔ +20.2% -3.9% Medical Technologies 6,399 8,870 8,976 ✔ +40.3% +1.2
Slide 11: Forecast for FY2023 and Prospects for medium-term (-2025)
Forecast for FY2023 and Prospects for medium-term (-2025) ©2023 Nissha Group 11
Slide 12: Forecast for FY2023 and Prospects for medium-term (-2025)
Forecast for FY2023 and Prospects for medium-term (-2025) Business Application 2023 Forecast (versus 2022) Prospects for medium-term (-2025) Industrial Decoration Gradual recovery from the Growth of new products related to Materials (Mobility) impact of supply constraints CASE and carbon-neutral Sus
Slide 13: FY2023 Forecast
FY2023 Forecast ⚫Demand adjustment phase for tablets in Devices in H1, and profitability improvement with demand recovery in H2 ■■Net sales (Millions of JPY) 250,000 ●Operating profit margin (Excl. temporary expenses *) Full-year Semiannual * Impairment loss due to discount rates rise, etc 200,000 1
Slide 14: FY2023 Forecast by business
FY2023 Forecast by business ⚫ Industrial Materials: Stable demand and pursuing productivity improvement ⚫ Devices: Demand recovery for tablet devices in H2 ■■■■ Net sales ●Operating profit margin ⚫ Medical Technologies: Continuing improvement (excl. temporary expenses *) in productivity and efficien
Slide 15: FY2023 Forecast
FY2023 Forecast (Millions of JPY) 2022 2023 Full-year Full-year H1 H2 YoY Results Forecast Forecast Forecast Net sales 193,963 192,000 90,700 101,300 -1.0% Industrial Materials 73,558 76,500 37,600 38,900 +4.0% Devices 79,951 72,000 32,500 39,500 -9.9% Medical Technologies 32,457 35,000 16,800 18,20
Slide 16: Prospects for medium-term (-2025): Industrial Materials
Prospects for medium-term (-2025): Industrial Materials ⚫ Stable growth of existing products and strong growth driven by new products ⚫ Mobility: About 3.0 billion yen investment for production facilities for "Exterior decoration × Function” (Germany) ⚫ Sustainable Materials: About 700 million yen i
Slide 17: Prospects for medium-term (-2025): Devices
Prospects for medium-term (-2025): Devices ⚫Regrowth with expanding business opportunities for tablet devices and gas sensors ■Others Net sales ■Gas sensors Net sales ■Mobility Net sales ■Tablet devices Net sales Tablet devices ■Smartphones Net sales ● Operating profit margin ⚫ 2024-: Expect net sal
Slide 18: Prospects for medium-term (-2025): Medical Technologies
Prospects for medium-term (-2025): Medical Technologies ⚫Medical devices CDMO: More business opportunities in advancement of minimally invasive surgical devices ⚫ M&A: About 20.0 billion yen investment for enhancing technology and development/design capabilities ■Business Media Net sales Minimally i
Slide 19: Evolution of market portfolio toward 2030
Evolution of market portfolio toward 2030 ■ Medical ■ Mobility ■ Sustainable Materials ■ IT Devices ■ Others 2025 2030 2020 Target Sustainability Vision Net sales Net sales Net sales 180.0 billion 235.0 billion 300.0 billion yen yen yen CAGR CAGR 5.5% 5.0% ©2023 Nissha Group 19
Slide 20: Shareholder returns
Shareholder returns ©2023 Nissha Group 20
Slide 21: Dividend
Dividend ⚫Plan to continue annual dividend of 50 yen per share due to progress in reorganization of portfolio Annual dividends per share Ordinary dividend (Interim) Ordinary dividend (Year-end) Commemorative dividend Special dividend JPY50 JPY50 JPY40 JPY35 * 25 JPY30 JPY30 JPY30 JPY30 5 JPY30 10 35
Slide 22: Acquisition of Treasury Stock
Acquisition of Treasury Stock ⚫Announced on November 10, 2022 ⚫ Reasons: To improve shareholder return and capital efficiency Outline Type of shares to be acquired Common stock in Nissha Co., Ltd. Method of acquisition Market purchase on the Tokyo Stock Exchange The number of shares to be Up to 1,10
Slide 23: Capital investment, Depreciation and amortization, R&D
Capital investment, Depreciation and amortization, R&D Capital investment Depreciation and amortization R&D (Millions of JPY) (Millions of JPY) (Millions of JPY) 15,000 15,000 10,000 10,000 10,000 10,800 9,487 9,258 9,200 8,401 5,000 7,855 7,359 7,040 4,200 3,973 5,000 5,000 2,947 2,869 0 0 2020 0 2
Slide 24: Sustainability Initiatives
Sustainability Initiatives Naoko Yoshida Deputy Director, ESG Promotion ©2023 Nissha Group 24
Slide 25: Response to Climate Change
Response to Climate Change ⚫To reduce total CO2 emissions by 30% in 2030 (versus 2020) ⚫Investment in 2023: About 500 million yen Industrial Materials ⚫Conversion to renewable energy in factories ⚫ Industrial Materials ⚫ Electricity 100% to renewable 甲賀工場 ⚫ Introduction of thermal storage deodorizer
Slide 26: Human Capital
Human Capital ⚫ Domestic and global enhancement of “Nissha Academy” ⚫ Re-skilling for priority markets: Linked to reorganization of portfolio ⚫ Enhancement to the group companies ⚫ Business school at a domestic factory (October 2022) Nissha Academy ⚫ ESG training at overseas group companies Establis
Slide 27: (Reference) External evaluations on our ESG
(Reference) External evaluations on our ESG Evaluation by ESG rating agency Certification ⚫ CDP: Received a “B” rating in the Climate Change Report 2022 ⚫ Certified as a White 500 of ⚫ Received an “A” rating in MSCI ESG Ratings Certified Health and Productivity Management Outstanding Organizations I
Slide 28: (Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2022 Results)
(Reference) Capital investment, Depreciation and amortization, M&A investment, R&D (FY2022 Results) (Millions of JPY) Q1 Q2 Q3 Q4 Results Results Results Results Capital 1,784 2,214 1,756 1,602 investment Depreciation and amortization 2,280 2,370 2,411 2,424 M&A - 151 - - investment *2018/12期より国内グルー
Slide 29: 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