Espec Corp. · TSE:6859

Espec — Q1 FY2024 Earnings Presentation

21 slides from Espec's earnings presentation, Aug 22, 2024

  1. Slide 1: Results Briefing for the Three Months Ended June 30, 2024

    Securities ID code:6859 ESPEC CORP. Results Briefing for the Three Months Ended June 30, 2024 August 22, 2024 ESPEC CORP.

  2. Slide 2: Financial Result for the Three Months Ended June 30, 2024

    Financial Result for the Three Months Ended June 30, 2024 ・Electronics- and automobile-related products performed steadily, and orders received remained at a high level. ・Sales and profits increased, due partly to the impact of the weaker yen. Year on Year Comparison with Forecasts Exceeded forecast

  3. Slide 3: Summary of Profits and Losses

    Summary of Profits and Losses (Millions of yen) FY2023 FY2024 Year on Year 1Q Results 1Q Results Orders Received 15,539 16,988 +9.3% Net Sales 12,275 13,691 +11.5% Cost of Net Sales 8,042 8,890 +10.5% Cost of Sales Ratio 65.5% 64.9% 0.6pt melioration Gross Profit 4,232 4,800 +13.4% SG&A 3,443 3,878

  4. Slide 4: Performance by Segment

    Performance by Segment (Millions of yen) FY2023 FY2024 Year on Year 1Q Results 1Q Results Orders Received 13,325 14,510 +8.9% Equipment Business Net Sales 10,580 11,827 +11.8% Operating Profit 803 810 +1.0% Orders Received 1,914 2,186 +14.2% Service Business Net Sales 1,592 1,767 +11.0% Operating Pr

  5. Slide 5: Analysis of Operating Profit Increase and Decrease Factors

    Analysis of Operating Profit Increase and Decrease Factors ■ Despite an increase in SG&A, profit increased due to sales growth and improvement in the cost of sales ratio in laboratory testing services. (Millions of yen) Equipment Business development expenses Research and goodwill Amortization of Se

  6. Slide 6: Equipment Business

    Equipment Business (Millions of yen) FY2023 FY2024 Year on Year 1Q Results 1Q Results Orders Received 13,325 14,510 +8.9% Net Sales 10,580 11,827 +11.8% Operating Profit 803 810 +1.0% Profit Ratio(%) 7.6% 6.9% Environmental Test Chambers ■ In Japan, highly versatile standardized products saw both in

  7. Slide 7: Service Business

    Service Business (Millions of yen) FY2023 FY2024 Year on Year 1Q Results 1Q Results Orders Received 1,914 2,186 +14.2% Net Sales 1,592 1,767 +11.0% Operating Profit 38 147 +284.6% Profit Ratio(%) 2.4% 8.3% After-Sales Service and Engineering ■ Orders received and net sales both increased year on yea

  8. Slide 8: Other Business

    Other Business (Millions of yen) FY2023 FY2024 Year on Year 1Q Results 1Q Results Orders Received 411 421 +2.6% Net Sales 199 207 +4.2% Operating Profit -48 -34 - Profit Ratio(%) -24.5% -16.7% Environmental Conservation, Plant Production Systems ■ Orders received and net sales both increased year on

  9. Slide 9: Sales by Market

    Sales by Market ■ The automobile market’s sales ratio increased substantially as progress was made on recording sales of products for EVs and batteries. 電子部品・電子機器市場 Non-Consolidated (Equipment Business) 自動車市場 半導体市場 研究機関市場 その他市場 100% 38 36 37 33 80% 40 60% 16 15 17 25 14 40% 13 15 19 14 12 5 6 8 8 10

  10. Slide 10: Sales by Region

    Sales by Region ■ Net sales increased particularly in Japan and North America, as well as Taiwan. Net sales in China decreased. FY2023 1Q FY2024 1Q Overseas sales ratio: 63.6% Overseas sales ratio: 61.0% Europe & North America China Taiwan 3,044 4,013 24.8% South Korea 4,466 29.3% 5,335 36.4% South

  11. Slide 11: Forecasts for FY2024

    Forecasts for FY2024 (Millions of yen) FY2023 FY2024 Full Year 1Q Forecasts Results Results 1H 2H Full Year Year on Year Orders Received 62,290 16,988 31,000 32,000 63,000 +1.1% Net Sales 62,126 13,691 30,500 34,500 65,000 +4.6% Gross Profit 21,994 4,800 10,400 12,200 22,600 +2.8% Profit Ratio (%) 3

  12. Slide 12: Segment Financial Forecasts

    Segment Financial Forecasts (Millions of yen) FY2023 FY2024 Full Year Forecasts 1Q Results Results 1H 2H Full Year Year on Year Orders Received 53,565 14,510 26,900 26,800 53,700 +0.3% Equipment Business Net Sales 53,518 11,827 26,600 29,400 56,000 +4.6% Operating Profit 5,848 810 2,680 3,500 6,180

  13. Slide 13: FY2024 Dividend Forecast

    FY2024 Dividend Forecast ■ For FY2024, we are forecasting an annual dividend of ¥80 and a dividend payout ratio of 33.6%. Dividend per share and dividend payout ratio/ total return ratio Interim Year-end (yen) 80 (Forecast) 80 *2 *3 75 68 68 69 70 *1 58 60 60 51 45 50 50 36 46 46 45 40 32 38 42 30 2

  14. Slide 14: Basic Policy on Profit Distribution

    Basic Policy on Profit Distribution Our basic policy is to determine dividends reflecting sustainability and the dividend payout ratio. In addition to a dividend payout ratio of 30%, we will add dividends with 1/3 of surplus funds as a baseline. While reflecting a necessary level of internal reserve

  15. Slide 15: Main Initiatives in FY2024

    Main Initiatives in FY2024 Equipment Business ・Increase production capacity in Japan (increase personnel, expand production space, utilize outsourcing) ・Expand lineup of high-value-added products Service Business After-sales Service: Expand preventative maintenance services through Super Support Ser

  16. Slide 16: Main Initiatives for ESG in FY2024

    Main Initiatives for ESG in FY2024 ■E (Environment) ・Promote the 8th Medium-term Plan on the Environment (FY2022-2025) ・Global warming countermeasure: Change to low-GWP refrigerant, Reduce CO2 emissions in business activities such as manufacturing ・Biodiversity conservation activities: Contributions

  17. Slide 17: TOPICS 1

    TOPICS 1 “Next-Generation Mobility Testing Laboratory (Tentative Name)” Battery Safety Testing Center Upgraded and Construction Began on a New Testing Center expanded laboratory testing equipment in Aichi Prefecture ・In August 2023, purchased land (7,500 m2) in Tokoname, ・Upgraded and expanded testi

  18. Slide 18: TOPICS 2

    TOPICS 2 Started Sales and Measurement Services for Expanding Lineup of Semiconductor Inspection Thermal Dependent Warpage Equipment Burn-In Chamber Support for High Measurement System Heat Generation Load ・In January 2024, started sales and measurement ・In March 2023, expanded the Burn-In Chamber w

  19. Slide 19: TOPICS 3

    TOPICS 3 ESPEC MIC CORP. Started Joint Research at Kawasui Kawasaki Aquarium Using Aquaponics In June 2023, ESPEC MIC CORP. started joint research with Kawasui Kawasaki Aquarium and the Laboratory of Tropical Crop Science, College of Bioresource Sciences, Nihon University on a demonstration experime

  20. Slide 20: External Recognition

    External Recognition ■2024 Jul. ・Financial Times in the UK and German data provider Statista Selected as an Asia-Pacific Climate Leader for the Second Year in a Row Mar.・Selected as Supplier Engagement Leader for two consecutive years, the Top Rank in the CDP Supplier Engagement Ratings Feb. ・Rated

  21. Slide 21: Forward-looking statements and inquiries

    These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f

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