Nihon Kagaku Sangyo Co., Ltd. · TSE:4094
Nihon Kagaku Sangyo — FY2024 Earnings Presentation
34 slides from Nihon Kagaku Sangyo's earnings presentation, May 21, 2025
Slide 1: FY2024 Financial Results and the Progress of Mid-term Management Plan
FY2024 Financial Results and the Progress of Mid-term Management Plan May 21, 2025 President KADOYA Hiroki
Slide 2: Agenda
01 Corporate overview 02 Characteristics of the Company’s Business FY2024 Financial Results and the Progress of 03 FY2024 Financial Results and the Mid-term Management Plan Progress of Mid-term Management Plan 04 Growth Initiatives 05 Activities to Achieve Management Considering Capital Costs and Sh
Slide 3: Paving the Path to the Future by Exploring the Potential of Metals
Paving the Path to the Future by Exploring the Potential of Metals Chemicals Business Division Building Materials Division Fireproof ventilation molding Electronic Battery component materials materials Use of metal resources Exterior products Building Materials Division Sales Composition (FY2024 Res
Slide 4: History
History Transitioned to the Tokyo Expanded overseas Stock Exchange Standard operations, mainly in Asia Market Listed on the Opened Second Section Vietnam Office Changed of the Tokyo Established a subsidiary for 2026 its corporate name Stock Exchange the chemicals business in 2022 Foundation to Thail
Slide 5: Corporate Profile
Corporate Profile Company NIHON KAGAKU SANGYO CO.,LTD. Name Head Office 8-1, Higashi Ueno 4-chome, Taito-ku, Location Tokyo, Japan Foundation August 、1939 Capital 1,034 million Yen No. of 450（as of March 31, 2025 Consolidated) Employees Business Manufacturing and Sales of Industrial Chemicals and Mo
Slide 6: Key highlights
Key highlights Progress of ⚫ Initiated construction of a pilot plant for the lithium-ion Mid-term battery recycling business Management Plan ⚫ Operating income of 2.86 billion yen (FY2024) ⚫ Chemicals Business Revitalization of existing businesses and creation of Core new businesses with metal recyc
Slide 7: Characteristics of the Company's Business
01 Corporate overview 02 Characteristics of the Company’s Business FY2024 Financial Results and the Progress of 03 FY2024 Financial Results and the Mid-term Management Plan Progress of Mid-term Management Plan 04 Growth Initiatives 05 Activities to Achieve Management Considering Capital Costs and Sh
Slide 8: Chemicals Business: Value Creation Model
Characteristics of our Business 1 Chemicals Business: Value Creation Model 成長領域の拡大 Expanding our growth areas Strengths Surface 強み Greater アウトプット Output アウトカム Outcomes treatment variety, Organo- technology smaller Customers/ The one and only お取引先さま suppliers metallic volume オンリーワンの technology 表面処理 c
Slide 9: Chemicals Business: Metal Recycling Business
Characteristics of our Business 2 Chemicals Business: Metal Recycling Business Increasing the recycling Enhancing Tackling social of metals decarbonization issues ⚫ Strengthening the supply chain ⚫ Developing technologies Collection to reduce the carbon footprint for collecting the waste to be recyc
Slide 10: Chemicals Business: B to B recycling business development (closed-loop recycling)
Characteristics of our Business 3 Chemicals Business: B to B recycling business development (closed-loop recycling) Strengthening proprietary technologies, reducing costs and CO2 emissions, and contributing to a circular society New electric vehicles Batteries Automobile Scrapped electric manufactur
Slide 11: Building Materials Business
Characteristics of our Business 4 Building Materials Business We will further develop our unique metal processing Our unique strengths technology, deliver new value in the fields of housing Achievements construction materials and industrial metal processing, Many years of experience in delivering co
Slide 12: FY2024 Financial Results and the Progress of Mid-term Management Plan
01 Corporate overview 02 Characteristics of the Company’s Business FY2024 Financial Results and the Progress of 03 FY2024 Financial Results and the Mid-term Management Plan Progress of Mid-term Management Plan 04 Growth Initiatives 05 Activities to Achieve Management Considering Capital Costs and Sh
Slide 13: Progress of Mid-term Management Plan 1
Progress of Mid-term Management Plan1 We expanded sales of custom products 01 One-of-a-kind chemicals business created together with customers Catalyst support for fuel cells and water Cutting-edge new materials electrolysis 02 business Metal nanoparticles for electronic components, etc. In January
Slide 14: Released on September 26, 2024
Released on September 26, 2024 NIHON KAGAKU SANGYO FY2024 Financial Results and the Progress of Mid-term Management Plan 14
Slide 15: Financial Results for FY2024 and Progress of Mid-term Management Plan 2
Financial Results for FY2024 and Progress of Mid-term Management Plan2 (100 millions of yen) FY2022 FY2023 FY2024 Net sales 240 224 254 Operating income 28.9 21.8 28.6 Operating income 12.1 9.7 11.2 margin (%) EBITDA 39.5 32.9 39.3 EBITDA margin（％） 16.4 14.7 15.4 ROE（％） 5.2 3.9 5.1 PBR 0.48 0.62 0.6
Slide 16: Financial Results for FY2024 and Progress of Mid-term Management Plan 3
Financial Results for FY2024 and Progress of Mid-term Management Plan３ 売上高（億円） (100 millions of yen) Net sales Operating income 営業利益（億円） 営業利益率（%） Operating income margin (%) 254 12.1% 240 11.2% 224 9.7% 28.9 28.6 21.８ FY2022 FY2023 FY2024 NIHON KAGAKU SANGYO FY2024 Financial Results and the Progress
Slide 17: Analysis of increase/decrease in operating income
Financial Results for FY2024 and Progress of Mid-term Management Plan4 Analysis of increase/decrease in operating income (100 millions of yen) 0.8 5.6 2.5 2.9 21.8 +6.8 28.6 Increase in FY2023 Increase/decrease Improved Market FY2024 fixed costs and fluctuations Actual in sales volume profitability
Slide 18: Financial Results for FY2024 by Segments
logo差し替え前 Financial Results for FY2024 by Segments and Progress of Mid-term Management Plan5 (Millions of yen) Net sales Operating income Compared Difference Compared Difference FY2023 FY2024 to the P.Y. FY2023 FY2024 to the P.Y. from the P.Y. from the P.Y. 18,536 21,715 17.2％ 3,179 2,244 3,170 41.2
Slide 19: Growth Initiatives
01 Corporate overview 02 Characteristics of the Company’s Business FY2024 Financial Results and the Progress of 03 FY2024 Financial Results and the Mid-term Management Plan Progress of Mid-term Management Plan 04 Growth Initiatives 05 Activities to Achieve Management Considering Capital Costs and Sh
Slide 20: How We Want to Be in FY2030 - Quantitative Targets 1
How We Want to Be in FY2030 - Quantitative Targets １ Operating income Operating income EBITDA margin ROE No less than margin No less than No less than No less than 5.9billion yen 12% 17％以上 8％以上 Existing businesses 3.0billion yen We will achieve stable profit growth New businesses 2.0billion yen by r
Slide 21: How We Want to Be in FY2030 - Approximate investment scale
How We Want to Be in FY2030 - Quantitative Targets 2 We will significantly increase strategic capital investments, research and development investments, etc. in order to revitalize existing businesses and create new ones, allocating a total growth investment budget of 20 billion yen over the next si
Slide 22: Activities Considering Capital Costs and Share Price
01 Corporate overview 02 Characteristics of the Company’s Business FY2024 Financial Results and the Progress of 03 FY2024 Financial Results and the Mid-term Management Plan Progress of Mid-term Management Plan 04 Growth Initiatives 05 Activities to Achieve Management Considering Capital Costs and Sh
Slide 23: Cost of shareholder's equity and return on equity
Cost of shareholder’s equity and return on equity To further increase corporate value, we aim to achieve a return on equity that surpasses the cost of shareholders' equity (e.g. long-term average returns of Japanese and US capital markets). 7.9% 8.0% 7.0% 6.0% 5.2% 5.1% 4.8％ 4.9% 5.0% 3.9% 4.0% FY20
Slide 24: Expansion of Shareholder Returns: Dividend Policy
Expansion of Shareholder Returns 1.Dividend Policy We will increase to pay dividends with a target DOE 4%, premised on maintaining a stable financial and earnings structure. 40.0 0.041 Total dividend amount Acquisition of treasury shares DOE(%) 35.0 0.036 Appox.4.0% target 30.0 0.031 25.0 3.6% 0.026
Slide 25: Expansion of Shareholder Returns: Program for stockholders
Expansion of Shareholder Returns 2. Introduction of a program for stockholders This program has been introduced to enhance the appeal of investing in our company's stock and to encourage more individuals to hold our shares for the long term. Overview Eligible Shareholders Shareholders recorded on ou
Slide 26: Idea of cash allocation (FY2025-2030)
Idea of cash allocation (FY2025-2030) We will implement the growth investment, etc. and shareholder returns, guided by the following gross cash inflow anticipation and a balanced approach to its use. Borrowings will be (100 millions of yen) allocated to capital investments as necessary Cumulative ca
Slide 27: FY2025 Financial Forecast
01 Corporate overview 02 Characteristics of the Company’s Business FY2024 Financial Results and the Progress of 03 FY2024 Financial Results and the Mid-term Management Plan Progress of Mid-term Management Plan 04 Growth Initiatives 05 Activities to Achieve Management Considering Capital Costs and Sh
Slide 28: Perception of Business Environment in FY2025
Perception of Business Environment in FY2025 Trends in major demand areas Chemicals 12,000 1,400 Forecast for the global number of xEV 1,350 units sold and in inventory 10,000 Million units ; source: IEA) 1,300 8,000 80 800 1,250 60 600 6,000 1,200 40 400 20 200 4,000 ? 1,150 0 0 1,100 2023 2030 203
Slide 29: FY2025 Financial Forecast
FY 2025 Financial Forecast Net sales Operating income (%) EBITDA（EBITDA margin（％）） (100 millions of yen) (100 millions of yen) FY 2024 Actual (100 millions of yen) 11% 11.2％ 39.3 254 246 247 （15.4%) 8% 8.6％ FY2025 Forecast 33.3 28.6 （13.5%) 20.4 21.3 Dividend per share FY2024 Actual 75Yen FY2025 For
Slide 30: FY2025 Financial Forecast: Operating Income Variance Analysis
FY2025 Financial Forecast: Operating Income Variance Analysis (vs. prior fiscal year) We expect operating income to decline by 730 million yen from the previous year although we maintain our efforts to improve profitability. This is due to increased uncertainty about the future of the global economy
Slide 31: FY2025 Financial Forecast By segment
FY2025 Financial Forecast By segment (100 millions of yen) Net sales Operating income Compared Difference Compared Difference FY2024 FY2025 to the P.Y. from the P.Y. FY2024 FY2025 to the P.Y. from the P.Y. 217.1 208.6 △4.0％ △8.7 31.7 25.0 △21.1％ △6.7 Chemicals Major reasons for Major reasons for Bus
Slide 32: Summary
01 Corporate overview 02 Characteristics of the Company’s Business FY2024 Financial Results and the Progress of 03 FY2024 Financial Results and the Mid-term Management Plan Progress of Mid-term Management Plan 04 Growth Initiatives 05 Activities to Achieve Management Considering Capital Costs and Sh
Slide 33: Summary
Summary The current business environment is growing increasingly uncertain, Business driven by geopolitical risks and unpredictable policy trends from the new U.S. administration. environm Even in this business environment, as mentioned above, we will continue ent and to take proactive measures whil
Slide 34: Disclaimer
None of the information in this presentation should be construed as an enticement to purchase or sell our shares. This presentation merely reflects the views held by us as at the time of its preparation; we do not guarantee the accuracy of any information contained in this presentation, and we reser