Piolax, Inc. · TSE:5988
Piolax — 1H FY2024 Earnings Presentation
23 slides from Piolax's earnings presentation, Dec 5, 2024
Slide 1: Piolax, Inc. Results Briefing, December 5, 2024
Thursday, December 5, 2024 PIOLAX, INC. (Code: 5988) Satoshi Yamada, President All Rights Reserved, Copyright © PIOLAX, INC. 1
Slide 2: Contents
Contents 1. Progress of medium-term management plan 2. Growth strategies 3. Regional strategies 4. Strategies of medical device business 5. Capital policy 6. Sustainability activities All Rights Reserved, Copyright © PIOLAX, INC. 2
Slide 3: Progress of medium-term management plan
Progress of medium-term management plan (Unit: 100M JPY) FY2023 FY2024 FY2025 FY2026 In the 1H, sales increased (strong North results after America and medical device business), but revision profit decreased compared to the plan. Sales 646 (660) 635 700 750 Without the effect of weak yen, the sales
Slide 4: Progress of medium-term management plan: Automotive 1
Progress of medium-term management plan: Automotive 1 Management strategy and Medium-term management plan Situations in FY24 priority issue 1.Product and customer strategy Accelerate response to CASE Steady sales activities ・Develop CASE parts and receive Sales ratio to non-Japanese OEMs: 1H: 12.4%
Slide 5: Progress of medium-term management plan: Automotive 2
Progress of medium-term management plan: Automotive 2 Management strategy and Medium-term management plan Situations in FY24 Priority Issue 4. Growth investment strategy Build a new Moka Plant. Building a new Moka Plant. ・Develop infrastructure in Japan FY24: Start Phase II construction. Phase II st
Slide 6: Response to CASE
Response to CASE Accelerate development and sales of CASE products, which is progressing steadily [Strategic Policy] ■ Focus resources on promising items and Bus bar accelerate sales expansion: bus bars, ADAS brackets Functional parts made of copper or aluminum ■ Make new Moka Plant a mother plant o
Slide 7: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 7
Slide 8: Shift in management policy
Shift in management policy Piolax in the past – Glow in line with the increasing car production ・Four business units by product line (fasteners, fuel system parts, powertrain parts, O/C mechanism parts) ・Management in the limited product areas by selection and concentration Changes in the business e
Slide 9: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 9
Slide 10: Japan: CASE products
Japan: CASE products Strengthen our organization by selection and concentration on CASE products and active investments [Market environment in Japan] Business strategy ■Car production volume in Japan 1. Strengthen our organization to respond to CASE ・Active capital investment in CASE products (1,000
Slide 11: North America: customer portfolio
North America: customer portfolio Diversify customer portfolio by strengthening sales to Big 3 [Market environment in N.A.] Business strategy ■ Share by OEM and our sales 1. Expand the ratio of sales to Big 3 composition ・Review and enhance system (sales and development). ・Consider a sales scheme fo
Slide 12: India: Following a growing market
India: Following a growing market Aggressive investment in the growing Indian market [Market environment in India] Business strategy ■Production volume 1. Diversify our customer portfolio in the growing (1,000 cars) 8,000 About 130% up (forecast) 7,400 market 5,700 ・Reinforce sales system to Maruti
Slide 13: China: Diversify customer portfolio
China: Diversify customer portfolio Enhance sales to Chinese OEMs [Market environment in China] Business strategy ■Production volume 1. Reinforce sales to Chinese OEMs (1,000 cars) 35,000 Japanese OEM Chinese OEM Others ・Set up a system so that everything from designing to production will complete i
Slide 14: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 14
Slide 15: Medical Device Business Strategy
Medical Device Business Strategy Advance from a niche strategy to a global niche strategy Business strategy [Efforts for product development] 1. Strategic sales by leveraging strengths ■Up to now Future of four main products Development focused on Development of unique ・Promote sales by expanding cu
Slide 16: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 16
Slide 17: ROE Analysis
ROE Analysis All three elements remain at low levels. To hasten improvement of “profitability,” we will review our business growth strategy. For “efficiency" and "financial leverage," we will review our capital structure. 15% 11.9% Profitability 10% 5.7% 6.2% Net profit 5% ROE Sales 0% Capital costs
Slide 18: Capital policy decided
Capital policy decided Toward transforming our capital structure, we will implement the following measures to improve capital efficiency and increase corporate value. No. item Contents Purchase 30 billion yen of our own shares over three years Total share buybacks over (10 billion yen a year). In th
Slide 19: Shareholder returns
Shareholder returns 1. Share buyback: 30 billion yen over three years Overview of the first share buyback 1) Acquisition amount and number of shares: 10 billion yen or 6 million shares (maximum) 2) Method: Purchasing from the market 3) Period: From November 8, 2024 to November 7, 2025 (continued the
Slide 20: Capital structure after measures
Capital structure after measures We amended the basic business alliance agreement with Saga Tekkohsho and sold part of its shares so that the company has been excluded from our equity method affiliates (below 20%). While continuing investments for growth, we will purchase our own shares worth of 30
Slide 21: All Rights Reserved, Copyright © PIOLAX, INC.
All Rights Reserved, Copyright © PIOLAX, INC. 21
Slide 22: Sustainability initiatives
Sustainability initiatives Carbon neutrality (CN) in FY23: -46% (from FY19) Diversity FY23: Introduce 100% renewable energy at Moka and Fuji FY23 FY30 Target Plants and Piolax Medical Devices. Percentage of female 5.2% 20% or more FY24: Include overseas subsidiaries in our roadmap. managers Gender w
Slide 23: Precautions for handling this document
Precautions for handling this document The forward-looking statements regarding our company in this document are based on information currently available to us. Please note that they are only projections at this time containing risks and uncertainties, and actual results may differ significantly fro