Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — FY2020 Earnings Presentation
35 slides from Nihon Dempa Kogyo's earnings presentation, May 27, 2021
Slide 1: Results of Operations for Fiscal 2020 (Ended March 31, 2021)
Results of Operations for Fiscal 2020 (Ended March 31, 2021) Nihon Dempa Kogyo Co., Ltd. May 27, 2021 [Note] Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements abo
Slide 2: Contents
＜Contents＞ １．Results for FY2020 (Ended March 31, 2021) ２．Outlook for FY2021 (Ending March 31, 2022) 3. Management Policies Going Forward ーPriority Focus Fields Presented by Hiromi Katoh, Representative Director and President 2
Slide 3: Consolidated Financial Results (Fiscal year)
1. Results for FY2020 (Ended March 31, 2021) Consolidated Financial Results (Fiscal year) ■The operating loss for FY2020 declined by about ¥1.5 billion year on year (excluding temporary factors) ■It turned positive in the second half of FY2020 (next slide) (Million yen) FY2020 FY2019 FY2020 Outlook
Slide 4: Consolidated Financial Results (Quarterly)
1. Results for FY2020 (Ended March 31, 2021) Consolidated Financial Results (Quarterly) ■Net sales recovered significantly since the second quarter of FY2020 ■Income became profitable since the third quarter of FY2020 due to reduction of fixed cost Net Sales Operating Income (excluding Temporary Fac
Slide 5: Sales by Application (Fiscal Year)
1. Results for FY2020 (Ended March 31, 2021) Sales by Application (Fiscal Year) ■The sluggish demand for automotive electronics in the first quarter due to the COVID-19 situation caused the sales to decline slightly Net Sales Factors of Increase/Decrease (Billion yen) FY2019 FY2020 YoY Sluggish dema
Slide 6: Sales by Application – Sales by Main Application
1. Results for FY2020 (Ended March 31, 2021) Sales by Application – Sales by Main Application – ■Automotive electronics sales recovered significantly from the second quarter of FY2020 ■Sales of industrial equipment to large communications equipment manufacturers declined in the second half of FY2020
Slide 7: Operating Income – Analysis of changes in profit from FY2019
1. Results for FY2020 (Ended March 31, 2021) Operating Income – Analysis of changes in profit from FY2019 – (Billion yen) +¥1.56 billion 0.5 FY2020 0.0 Effect of Result Significant improvement change in (excluding in fixed cost structure inventories temporary ▲0.72 billion factors) Operating Income
Slide 8: Inventory
1. Results for FY2020 (Ended March 31, 2021) Inventory ■The significant increase in automotive electronics orders in FY2020 caused a steep reduction in inventories Inventory Balance and Monthly Sales Ratio* (Billion yen) Comparison 160 16 4.1 mos. 4.1 mos.4.3 mos. with monthly 4.0 mos.4.0 mos. 3.8 m
Slide 9: Consolidated Financial Condition
1. Results for FY2020 (Ended March 31, 2021) Consolidated Financial Condition ■The shareholders’ equity ratio at the end of FY2020 was 21.5% (Surpassing the Medium-Term Management Plan target of over 20%+ by the end of FY2022) Net assets rose on a ¥5 billion investment from JIS* and (Billion yen) re
Slide 10: Consolidated Cash Flows
1. Results for FY2020 (Ended March 31, 2021) Consolidated Cash Flows ■FCF (excluding temporary factors) improved by an estimated ¥3.0 billion year on year to a positive ¥2.03 billion in FY2020 Consolidated Cash Flows (Billion yen) FCF ▲1.80 ▲8.25 ▲0.67 ▲1.09 2.03 (Operating cash flows + Investing ca
Slide 11: Contents
＜Contents＞ １．Results for FY2020 (Ended March 31, 2021) ２．Outlook for FY2021 (Ending March 31, 2022) 3. Management Policies Going Forward ーPriority Focus Fields 11
Slide 12: Consolidated Financial Forecast
２．Outlook for FY2021 (Ending March 31, 2022) Consolidated Financial Forecast ■Full FY2021 operating income forecast to reach ¥2.2 billion (excluding temporary factors) ■Operating income ratio is expected to improve to 5.2% in full year (excluding temporary factors) (Million yen) FY2020 FY2021 Plan Y
Slide 13: Sales Forecast by Application
２．Outlook for FY2021 (Ending March 31, 2022) Sales Forecast by Application ■Forecasting year on year sales growth in FY2021 driven mainly by automotive electronics sales Net Sales (Billion yen) Factors of Increase/Decrease FY2020 FY2021 Plan YoY Orders are currently strong Forecasting sales in the f
Slide 14: Operating Income – Analysis of changes in profit from FY2020
２．Outlook for FY2021 (Ending March 31, 2022) Operating Income ー Analysis of changes in profit from FY2020 – ■Higher fixed costs, primarily from increased production capacity, but vastly improved profitability from higher sales and the restocking of inventories ＋¥2.64 billion (Billion yen) 2.5 Resupp
Slide 15: Capital Investment Plan (Fiscal Year)
２．Outlook for FY2021 (Ending March 31, 2022) Capital Investment Plan（Fiscal Year） ■Installing high-speed, high-precision production lines for mobile communications and automotive electronics, and expanding production capacity （Billion yen） Of which, investment to increase production 30 3.0 Mobile co
Slide 16: Major Capital Investment in FY2021
２．Outlook for FY2021 (Ending March 31, 2022) Major Capital Investment in FY2021 ■Expanding production capacity for ultra-compact crystal units for mobile communications Summary of Major Capital Investments ◼ Capital Investment Breakdown • Photolithographic blank production line (Sayama Factory) • Ul
Slide 17: Achievement Status of the Medium-Term Management Plan – Profit and Finance
２．Outlook for FY2021 (Ending March 31, 2022) Achievement Status of the Medium-Term Management Plan – Profit and Finance – ■Progress of the medium-term management plan is on schedule. Achievement Status and Outlook of FY2022(mid-term target) FY2019 FY2020 FY2021 FY2022 Actual Actual Plan Mid-term Eva
Slide 18: Achievement Status of the Medium-Term Management Plan – Fixed Cost Level
２．Outlook for FY2021 (Ending March 31, 2022) Achievement Status of the Medium-Term Management Plan – Fixed Cost Level – ■In FY2021, fixed costs are expected to increase due to expanding production capacity for automotive electronics and mobile communications ■In FY2022, we expect to lower fixed cost
Slide 19: Contents
＜Contents＞ １．Results for FY2020 (Ended March 31, 2021) ２．Outlook for FY2021 (Ending March 31, 2022) 3. Management Policies Going Forward ーPriority Focus Fields 19
Slide 20: Priority Focus Fields: Automotive and 5G
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields: Automotive and 5G ■Priority focus fields are the automotive electronics and 5G Automotive Electronics 5G We began supplying automotive products to the We started the development of photolithographic market in early 197
Slide 21: Priority Focus Fields: Automotive (1/3) – NDK's Competitiveness
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields: Automotive (1/3) – NDK’s Competitiveness – NDK’s uncompromising approach to high quality required to automotive product NDK receives steady trust from Tier 1 customers NDK Thorough Support Other Ability to anticipate n
Slide 22: Priority Focus Fields: Automotive (2/3) – Market Trend
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields: Automotive (2/3) – Market Trend – ■Although it may take time for worldwide automobile sales to return to pre-COVID levels, we expect a substantial increase in the number of crystal devices per vehicle (→ next slide)） G
Slide 23: Priority Focus Fields: Automotive (3/3) – Products Potential
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields: Automotive (3/3) – Products Potential – ■Growing number of automobiles equipped with ADAS will increase the number of crystal devices per vehicle Crystal Products Potential by Automotive Application (Million units) ADA
Slide 24: Priority Focus Fields: 5G
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields: 5G ■5G has two main markets: a network market and a device market ■The 5G industry has high growth potential, and NDK has the ability to address both markets Network (Base Stations) Device (Mobile Communications) Altho
Slide 25: Priority Focus Fields: 5G – Base Stations (1/2)
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields：5G – Base Stations – (1/2) • 5G base stations are expected to need a larger number of small wireless base stations, called RUs (radio units) CU : Abbreviation for Central Unit DU : Abbreviation for Distributed Unit RU :
Slide 26: Priority Focus Fields: 5G – Base Stations (2/2)
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields：5G – Base Stations – (2/2) • Focus on developing and selling compact OCXO for RUs for the expanding 5G market Base Station Market Growth Potential (Thousand base stations) RU(5G) Market RU market growing as 5G expands C
Slide 27: Priority Focus Fields: 5G – Mobile Communications (1/3)
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields：5G – Mobiles Communications – (1/3) • The advent of the 5G era will increase the need for compact high-frequency crystal devices, which will play directly to our superiority in photolithography processing technology Sma
Slide 28: Priority Focus Fields: 5G – Mobile Communications (2/3)
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields：5G – Mobiles Communications – (2/3) Source of Our Competitive Advantage Key Product Built on our extensive trial and error experience since 2008 to realize Many years of effort high-yield production of compact came to f
Slide 29: Priority Focus Fields: 5G – Mobile Communications (3/3)
3. Management Policies Going ForwardーPriority Focus Fields Priority Focus Fields：5G – Mobiles Communications – (3/3) • Sell ultra-compact products with photolithographic blanks for 5G smartphones • Increase smartphone market share as demand grows for 5G smartphones Products Equipped with 5G Smartpho
Slide 30: Other: Initiatives for beyond the 5G horizon
3. Management Policies Going ForwardーPriority Focus Fields Other: Initiatives for beyond the 5G horizon • We have started research and development adopted by “Post 5G*1 Information and Communications Systems Fundamental Reinforcement R&D Project/Leading Research (consigned)” of METI*2 and NEDO*3 Res
Slide 31: Conclusion
3. Management Policies Going ForwardーPriority Focus Fields Conclusion We will strive to fulfilling the Medium-Term Management Plan We will forge ahead to establish a “muscular” financial position for an aggressive recovery Full-fledged 5G/ADAS Groundwork prepared from FY2018 Medium-term • Production
Slide 32: New Investor Relations webpage launched on 5/26
(Reference) Announcement of Fully Updated Investor Relations Webpage Please see the NDK website page for investors for more information about NDK’s technological capabilities, competitive advantage and areas of focus. https://www.ndk.com/jp/ad/2021/index.html New Investor Relations webpage launched
Slide 33: Thank you everyone for your time
Thank you everyone for your time For investor-related inquiries, please contact: Corporate Planning Group Nihon Dempa Kogyo Co., Ltd. Mail: irmaster@ndk.com 33
Slide 34: Appendix: Sales by Application (half year)
Appendix Sales by Application （half year） FY2020 Actual FY2021 Outlook (Billion yen) 1H 2H Total 1H 2H Total Automotive 7.4 10.8 18.3 11.2 10.9 22.2 electronics Industrial 1.9 1.7 3.7 1.4 1.5 2.9 equipment Mobile 4.0 4.3 8.3 3.9 4.3 8.1 communications IoT 0.7 0.6 1.3 0.7 0.7 1.4 Consumer 1.9 2.3 4.3
Slide 35: IN| NIMIK
IN| NIMIK Crystal Bridge to the Future I NOK 35