Slide 1: Financial Results for FY2022 Q3
Financial Results for FY2022 Q3 Ended September 30, 2022 November 10, 2022 Junya Suzuki President and CEO Nissha Co., Ltd.
Slide 2: Contents
Contents ⚫FY2022 Q3 Results and Forecast for FY2022 ⚫Prospects for FY2023 ⚫Updates on medium- to long-term growth ⚫Shareholder returns ©2022 Nissha Group 2
Slide 3: FY2022 Q3 Results and Forecast for FY2022
FY2022 Q3 Results and Forecast for FY2022 ©2022 Nissha Group 3
Slide 4: Highlights
Highlights FY2022 Q3 Results (9 months ended) ⚫ Tailwinds ⚫ Reorganization of business portfolio progressed: Non-IT devices demand grew while smartphones demand decreased as assumed ⚫ Industrial Materials: Price increase of Sustainable Materials and demand recovery for decoration for mobility compon
Slide 5: FY2022 Q3 (9 months) Results
FY2022 Q3 (9 months) Results ⚫ Product demand for Industrial Materials and Medical Technologies grew ⚫ Operating profit decreased due to mainly decline in smartphones demand and cost soaring ⚫ Finance income according to foreign exchange gains （Millions of JPY） （百万円） FY2021 FY2022 Q3 Q3 YoY Results
Slide 6: FY2022 Q3 (3 months) Results
FY2022 Q3 (3 months) Results ⚫ Tablet devices led to the increased current net sales, and Medical Technologies made stable growth （Millions of JPY） FY2021 FY2022 FY2022 Q3 Q2 Q3 Results Results Results YoY QoQ Net sales 47,948 46,804 53,165 +10.9% +13.6% Industrial Materials 14,436 19,383 18,777 +30
Slide 7: Industrial Materials
Industrial Materials ⚫ Decoration: Demand recovery for mobility bottoming out in Q2, and demand halt for home appliances from strong demand by Q2 ⚫ Sustainable Materials: Steady product demand ■Sustainable Materials (Metallized paper and others) Net sales trend by ■Decoration (Others) (Millions of J
Slide 8: Devices
Devices ⚫ Demand recovery and increase for tablet devices, and outlook for growth through to Q4 ⚫ Steady product demand for industrial equipment (logistics related) continued, and gas sensors expanding Net sales trend by ■Potable game players, Industrial equipment (logistics related), Mobility, Gas
Slide 9: Medical Technologies
Medical Technologies ⚫ Continuing demand growth for medical devices CDMO and business media ⚫ Cost soaring continued, but improved profitability due to product price increase and productivity enhancement ■Business media Net sales trend by ■Medical devices (Own brand) 10,000 Application (by quarter)
Slide 10: Forecast revised upward
Forecast revised upward ⚫ Net sales has been revised upward by reviewing demand forecast for Q4 ⚫ Operating profit was adjusted among businesses ⚫ Profit before tax and Profit attributable to owners of parent have been revised upward, reflecting the finance income (foreign exchange gain) in Q3 ⚫ Exc
Slide 11: Profitability stabilized due to progress the reorganization of business portfolio
Profitability stabilized due to progress the reorganization of business portfolio Consolidated net sales (by target market) ■Smartphones ■Tablet devices (Millions of JPY) ■Non-IT devices ●Operating profit margin and operating profit margin 150,000 30.0% 134,862 Decreasing smartphone Implemented Meas
Slide 12: Prospects for FY2023
Prospects for FY2023 ©2022 Nissha Group 12
Slide 13: Prospects for FY2023
Prospects for FY2023 Making up for demand decrease for smartphones with other products in other markets of which demand is expected to increase Business Products Markets Demand trend (versus 2022 forecast) Industrial Decoration Mobility Recovery from the impact of supply constraints, Materials (Inte
Slide 14: Updates on medium- to long-term growth
Updates on medium- to long-term growth ©2022 Nissha Group 14
Slide 15: Medical devices
Medical devices Steady progress toward achieving the 7th Medium-term Business Plan Medical devices CDMO to be accelerated growth through M&A Main fields of medical devices (CDMO) Net sales of Medical Technologies Target: single-use medical devices ■Others ■Medical devices (CDMO) Minimally invasive C
Slide 16: Gas Sensor
Gas Sensor Expect demand increase by spread of applications Alcohol checkers Refrigerant leak detection sensors Hydrogen Detectors ⚫ Social trends: Eradication of for air conditioners ⚫ Order increase for fuel cell drunk driving ⚫ From 2024 in North America, it vehicles (mainly for commercial will b
Slide 17: Shareholder returns
Shareholder returns ©2022 Nissha Group 17
Slide 18: Revision to Dividend Forecast
Revision to Dividend Forecast ⚫ Plan to increase annual ordinary dividend (20 yen), taking into account the reorganization of business portfolio progressed and the business results of the current term ⚫ Increase dividend during year per share from 30 yen to a record high of 50 yen ⚫ Dividend policy:
Slide 19: Acquisition of Treasury Stock
Acquisition of Treasury Stock ⚫ Reasons: To improve shareholder return and engage in flexible capital policies ⚫ Use of treasury stock: Planned to be used for stock benefits for some Directors of the Board, Corporate Officers, and employees Outline Type of shares to be acquired Common stock in Nissh
Slide 20: Reference: Capital investment, Depreciation and amortization, M&A investment, R&D
Reference: Capital investment, Depreciation and amortization, M&A investment, R&D (Millions of JPY) Q1 Q2 Q3 Results Results Results Capital 1,784 2,214 1,756 investment Depreciation and 2,280 2,370 2,411 amortization M&A investment - 151 - R&D 842 1,049 984 ©2022 Nissha Group 20
Slide 21: 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