Imasen Electric Industrial Co., Ltd. · TSE:7266
Imasen Electric Industrial — Q2 FY2025 Earnings Presentation
36 slides from Imasen Electric Industrial's earnings presentation, Nov 14, 2024
Slide 1: Summary of Consolidated Financial Results for 2Q FY2025
Summary of Consolidated Financial Results for the Second Quarter of Year Ending March 31, 2025 (2Q FY2025) Nov 14, 2024 Imasen Electric Industrial Co., Ltd. Tokyo Stock Exchange Standard Market, Nagoya Stock Exchange Premier Market Stock code: 7266 ©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights res
Slide 2: Summary of Consolidated Financial Results / Medium- and Long-term Management Policy
I. Summary of Consolidated Financial Results for 2Q FY2025 II. Medium- and Long-term Management Policy ©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved. 2
Slide 3: I. Summary of Consolidated Financial Results for 2Q FY2025
I. Summary of Consolidated Financial Results for 2Q FY2025 II. Medium- and Long-term Management Policy ©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved. 3
Slide 4: Summary of Consolidated Financial Results for 2Q FY2025
Summary of Consolidated Financial Results for 2Q FY2025 (Unit: Million yen) 2Q FY2024 2Q FY2025 2Q FY2025 Difference Change Result Plan Result Net sales 47,332 46,000 46,519 -813 -1.7% Operating profit -276 -500 -437 -161 - Ordinary profit 208 100 -252 -460 - Profit attributable to -1,114 2,000 1,82
Slide 5: 2Q FY2025 Operating Profit (Year on Year)
2Q FY2025 Operating Profit (Year on Year) (Foreign exchange impact ＋2,868) (Production fluctuations -3,681) Unit: Million yen -813 Net sales: 47,332 Net sales: 46,519 -161 2Q FY2024 +553 -483 2Q FY2025 +427 -343 -315 -276 One-time costs -437 Economic Foreign (Mainly new model fluctuations exchange d
Slide 6: 2Q FY2025 Operating Profit (Disclosed Forecasts vs Results)
2Q FY2025 Operating Profit (Disclosed Forecasts vs Results) (Foreign exchange impact +0) (Production fluctuations +519) Unit: Million yen +519 Net sales: 46,000 Net sales: 46,519 +63 Plan ※Planned figures are revised figures disclosed in August 2024 Result +70 -14 +6 Economic -437 fluctuations -500
Slide 7: 2Q FY2025 Results by Business Segment
2Q FY2025 Results by Business Segment [ Year on Year ] (Unit: Million yen) Seat and Electrical Equipment Business Electronics Business Net sales -842 (-2.2%) Net sales -54 (-0.8%) Although there was an upswing due to the Although the weak yen had an effect of 38,105 37,263 weak yen, production in Ch
Slide 8: 2Q FY2025 Results by Regional Segment
2Q FY2025 Results by Regional Segment [ Year on Year ] (Unit: Million yen) Japan North America Net sales -564 (-3.0%) Net sales +2,330 (+16.9%) 19,123 Revenues decreased due to a decrease in Revenue increased due to increased 18,559 production in the electronics business. production and a weaker yen
Slide 9: 2Q FY2025 Capital Investment and Depreciation Expense
2Q FY2025 Capital Investment and Depreciation Expense (Unit: Million yen) <Major investments during the period> Capital investment ・Japan Decrease compared to the previous year’s 2Q 2Q Difference mold investment. FY2024 FY2025 ・North America Japan 868 646 -222 Increased due to investments related to
Slide 10: Seat and Electrical Equipment Business Base Optimization
Review of 2Q FY2025 Seat and Electrical Equipment Business Base Optimization [Optimizing personnel through [Business Consolidation] voluntary retirement program] FY2025, tests have been Guangzhou Plant Ohio Plant Tennessee Plant Wuhan Plant conducted, including in Wuhan. Guangzhou about 155 Wuhan ab
Slide 11: Development of welfare equipment related business
Review of 2Q FY2025 Development of welfare equipment related business - IMASEN Group's welfare products - In order to grow our welfare equipment-related business, we have begun handling rental equipment. We have a product lineup that is targeted to a wider range of users. Electric wheelchair myride
Slide 12: IR Activities
Review of 2Q FY2025 IR Activities - We exhibited at the Nagoya Stock Exchange IR Expo 2024 - We exhibited at the Nagoya Stock Exchange IR Expo 2024, an investor exhibition held on September 6-7, 2024. The president and directors also attended the event and promoted our company profile and initiative
Slide 13: Forecasts of Consolidated Financial Results for FY2025
Forecasts of Consolidated Financial Results for FY2025 (Unit: Million yen) Previous Forecasts Difference Change results (FY2025) (FY2024) Net sales 99,730 93,500 -6,230 -6.2% Operating profit 14 100 +86 +614.3% Ordinary profit 260 300 +40 +15.4% Profit Attributable to -71 1,400 ＋1,471 ー owners of pa
Slide 14: II. Medium- and Long-term Management Policy
I. Summary of Consolidated Financial Results for 2Q FY2025 II. Medium- and Long-term Management Policy ©IMASEN ELECTRIC INDUSTRIAL CO.,LTD. All rights reserved. 14
Slide 15: Medium- and Long-term Management Policy
Medium- and Long-term Management Policy 1. Review of Medium- and Long-term Management Plan Creating the future of mobile space 2. New Medium-term Management Plan (1) Priority Measures (2) Recognizing the Current Management Environment (3) Medium-term Revenue Targets (4) Specific Initiatives ©IMASEN
Slide 16: Review of Medium- and Long-term Management Plan
1. Review of Medium- and Long-term Management Plan Review of the previous medium-term On August 23, 2012, the company announced a management plan (FY2022-2024) "Correction of Management Policy" at the first quarter financial results Results assignment briefing for the FY2025. Launching a Need to res
Slide 17: FY2030 Long-term Goals
1. Review of Medium- and Long-term Management Plan FY2030 Long-term Goals Goals Response Policy <Strengthening sales structure to secure new orders globally> ・Seat : Sales increase following TS-TECH sales expansion Strengthening sales structure and independently expanding sales targeting foreign com
Slide 18: (1) Priority Measures
2. New Medium-term Management Plan (1) Priority Measures Long-term goals and new Medium-term Management Plan FY2025 FY2027 FY2030 Operating Sales ROE FY2030 target profit Backcasting FY2025-FY2027 150 6.0% 7.0% Medium-term billion yen or more Management Plan Nine Priority Measures Speed of manageme
Slide 19: Recognizing the Current Management Environment
2. New Medium-term Management Plan (2) Recognizing the Current Management Environment ➤ Management Environment by Region ➤Crossroads for Japanese ➤Strong sales to Japanese manufacturers manufacturers 2023: Mitsubishi withdrawal Continuing to secure orders received for Honda June 2024: Production sus
Slide 20: (3) Medium-term Revenue Targets
2. New Medium-term Management Plan (3) Medium-term Revenue Targets Corporate goal for the medium term: Restore business performance ➤ FY2030 long-term targets and grow businesses Net sales Operating 150 Billion yen 200 ➤ FY2027 medium-term revenue profit 6.0% 20.0% Net sales (Billion yen) targets RO
Slide 21: Reviewing the launch process for new models
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ① Accelerating decision-making ③ Strengthening competitiveness 1) Reviewing the launch process for new models ➢ Setting criteria for investment decisions to be made by New Model Evaluation Comm
Slide 22: Promoting joint sales expansion drawing on TS-TECH's global bases
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ② Strengthening sales functions 2) Promoting joint sales expansion drawing on TS-TECH’s global bases ■Strengthening competitiveness by leveraging capital relationships Germany US • Joint activi
Slide 23: Accommodating expanded sales and increased production in Indian market
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ② Strengthening sales functions ③ Strengthening competitiveness 3) Accommodating expanded sales and increased production in Indian market ➢ Net sales are expected to increase sharply due to the
Slide 24: Promoting sales channel expansion in Electronics Business
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ② Strengthening sales functions 4) Promoting sales channel expansion in Electronics Business ➢ Adding new customers for existing product lines (including boosting overseas orders) ➢ Expanding j
Slide 25: Investments in line with shift to single base in North America
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ④ Restructuring in North America and China 5) Making investments to strengthen our competitiveness in line with shift to single base in North America ➢ Strengthening competitiveness by building
Slide 26: Framework tailored to the shrinking Chinese market
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ④ Restructuring in North America and China 6) Establishing framework tailored to the shrinking Chinese market ➢ Pursuing the optimization of a production framework to strengthen competitiveness
Slide 27: Reviewing the characteristics of the procurement structure
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ⑤ Restructuring procurement structure 7) Reviewing the characteristics of the procurement structure ➢ Strengthening cost competitiveness by adopting new procurement methods free of conventional
Slide 28: Reorganizing domestic business bases
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ⑥ Reconstruction of earning power 8) Reorganizing domestic business bases ➢ Considering the reorganization of domestic business bases in line with our view that restoring domestic business perf
Slide 29: Increasing investment in new product development
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business Business growth performance ⑧ Group synergies 9) Increasing investment in new product development ➢ Developing three themes by pursuing group synergies ➢ Undertaking project activities by establishing dedicated developmen
Slide 30: Promoting sustainable activities
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ⑨ ESG management 10) Promoting sustainable activities ➢ Identifying priority issues (materialities) from among the SDGs, other social issues, and issues specific to us and striving to contribut
Slide 31: Management that takes into account capital costs and share price
2. New Medium-term Management Plan (4) Specific Initiatives Restoring business performance Business growth ⑦ Capital policy 11) Management that takes into account capital costs and share price <Analysis of current situation> PBR Chronically below 1.0x. PER Our share price is currently failing to tra
Slide 32: Capital policy: ROE above capital costs
2. New Medium-term Management Plan (4) Specific Initiatives ⑦ Capital policy Basic Policy: To deploy capital in a manner that takes into account capital costs and our share price In addition to stabilizing cash generation, we will deploy capital efficiently and in a manner that contributes to future
Slide 33: Prioritizing the allocation of funds to growth investments
2. New Medium-term Management Plan (4) Specific Initiatives ⑦ Capital policy Cash allocation aimed at growth We will generate income through improved business performance and aim to invest in new growth channels, thus elevating shareholder returns over the long term. FY2025 - FY2027 ➢ Growth investm
Slide 34: Reviewing our dividend policy
2. New Medium-term Management Plan (4) Specific Initiatives ⑦ Capital policy Reviewing our dividend policy ➢ Stable dividend increases in line with the recovery in business performance ➢ Determine dividend payout ratio based on the full-year business environment and performance while targeting a rat
Slide 35: [Reference] Future plans IR Calendar
[Reference] Future plans IR Calendar 2024 Dec 2(Mon.) Interim dividend payment for the FY2025 Interim Business Report sent to shareholders 2025 Feb 7(Sat.) FY2025 3Q Financial Results Announcement Feb 14(Sat.) FY2025 3Q Financial Results Briefing @ The Securities Analysts Association of Japan Confer
Slide 36: Creating the future of mobile space
Creating the future of mobile space Challenge by New Imasen Imasen Electric Industrial Co., Ltd. reserves all rights to the contents of this document. Unauthorized republication or reuse is strictly prohibited. Forecasts of business results and other forward-looking statements in this document r
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