Nitto Seiko Co., Ltd. · TSE:5957
Nitto Seiko — FY2021 Earnings Presentation
40 slides from Nitto Seiko's earnings presentation, February 2022
Slide 1: Results Briefing for the 116th Business Period ending December 31, 2021
（securities Code 5957 in the First section of the Tokyo Stock Exchange） Results Briefing for the 116th Business Period ending December 31, 2021 Transitioned to the "Prime Market" on April 4. I will. 1
Slide 2: Contents
Contents １．Summary of Business Results for the 116th Fiscal Year Ending Dec 2021 ２．Forecast for the 117th Fiscal Year Ending Dec 2022 ３．Promoting Sustainability Management ４．Efforts by Segment ５．Management Approach ■ Explained by Masami Zaiki, President 2
Slide 3: Summary of Business Results for the 116th Fiscal Year
１．Summary of Business Results for the 116th Fiscal Year Ending Dec 2021 3
Slide 4: Financial Highlights 116th Fiscal Year Ending Dec 2021 (Consolidated)
Financial Highlights116th Fiscal Year Ending Dec 2021 (Consolidated) Year ending Dec 2021 Year ending Dec. Year ending Dec YoY comparison Compared to forecast 2020 2021 Unit: Million yen / % (as of Nov. 10, 2021) Ratio Ratio Amount % Forecast Amount % Amount Amount amount (%) (%) change Change chang
Slide 5: Net Sales and Operating Income by Segment (Consolidated)
Net Sales and Operating Income by Segment (Consolidated) Year ending Dec Year ending Dec YoY comparison (Unit: Million yen / %) 2020 2021 Amount change % Change Net sales 23,366 27,896 4,530 19.4 Operating Fastener income 557 1,545 988 177.1 Profit ratio 2.4 5.5 Net sales 5,454 7,182 1,727 31.7 Oper
Slide 6: Overview of results by segment - Fastener Division
Overview of results by segment - Fastener Division Year Year ending ending ◆Automobile YOY comparison Dec Dec ・Strong sales of anti-loosening screws Unit: Mil yen/ % 2020 2021 such as “GIZA TITE” and “ALUMITITE”, % Amount Amount Amount and screws with embedded washers for Change ECU boards, mainly f
Slide 7: Overview of results by segment – Assembly Machine Division
Overview of results by segment – Assembly Machine Division Year Year ending ending ◆Automobile YOY comparison Dec Dec ・Investments in new production lines and Unit: Mil yen/ % 2020 2021 large-scale facilities for CASE-related and EV- % related products were strong. Amount Amount Amount Change ・The U
Slide 8: Overview of Results by Segment – Control System Division
Overview of Results by Segment – Control System Division Year Year ◆Chemical and pharmaceuticals ending ending YOY comparison ・Demand for analytical equipment, such as Unit: Mil yen/ % Dec 2020 Dec 2021 elemental analyzers and moisture meters, is strong. Amount Amount Amount % Change ◆Energy sector
Slide 9: Overview of Results by Segment – Medical Division
Overview of Results by Segment – Medical Division Year Year ◆Medical ending ending YOY comparison ・We are working to expand sales Dec Dec Unit: Mil yen/ % 2020 2021 channels through medical equipment sales companies, develop clinical trials, and Amoun % reduce costs for "FREELED". Amount Amount t Ch
Slide 10: Summary of Overseas Business Results (Q4 of FY 2021)
Approximately 26.5 % of consolidated sales are overseas Summary of Overseas Business Results (Q4 of FY 2021) Net sales Compared Area ratio by Country to Q4 Notes area FY20 Demand for screws for game machines and IT- related equipment increased due to stay-at-home China 120％ demand. Investment in aut
Slide 11: Balance Sheet 116th Fiscal Year Ending Dec 2021 (Consolidated)
Balance Sheet 116th Fiscal Year Ending Dec 2021 (Consolidated) Year ending Dec 2020 Year ending Dec 2021 YoY comparison Unit: Mil yen/ % Amount Ratio Amount Ratio Amount Ratio Assets Total current assets 27,704 59.9 32,646 64.1 4,941 17.8 Cash and deposits 9,287 20.1 11,415 22.4 2,128 22.9 Notes, ac
Slide 12: Cash Flow Statement for the Fiscal Year Ending Dec 2021 (Consolidated)
Cash Flow Statement for the Fiscal Year Ending Dec 2021 (Consolidated) Year Endling Dec Year Ending Dec 2021 Unit: Mil yen 2020 Amount Amount Amount change % Change CF from operating activities ※① 3,368 3,650 281 8.4 CF from investing activities ※② △3,164 △993 2,171 － （Free CF） ※①＋② 204 2,657 2,452
Slide 13: Forecast for the 117th Fiscal Year Ending Dec 2022
２．Forecast for the 117th Fiscal Year Ending Dec 2022 The forecasts contained in this document are based on information currently available to the Company and certain assumptions that the Company considers reasonable and may differ from actual results due to various factors in the future.
Slide 14: Forecast for Fiscal Year Ending Dec 2022 (Consolidated)
Forecast for Fiscal Year Ending Dec 2022 (Consolidated) Year ending Dec 2022 Year ending Dec. 2021 YoY comparison (Forecast) Unit: Million yen / % Amount Amount Ratio (%) Amount Ratio (%) % Change change Net sales 40,518 100.0 42,500 100.0 1,981 4.9 Operating income 3,249 8.0 3,400 8.0 150 4.6 Ordin
Slide 15: Forecast for Fiscal Year Ending Dec 2022 (Consolidated)
Forecast for Fiscal Year Ending Dec 2022 (Consolidated) Year ending Dec 2022 Year ending Dec. 2021 YoY comparison (Forecast) 単位：百万円／％ Amount Amount Ratio (%) Amount Ratio (%) % Change change Net sales 40,518 100.0 42,500 100.0 1,981 4.9 Operating income 3,249 8.0 3,400 8.0 150 4.6 Ordinary income 3,
Slide 16: Sales and Operating Income Forecast by Segment (Consolidated)
Sales and Operating Income Forecast by Segment (Consolidated) Year ending Year ending YoY comparison Unit: Million yen / % 2021 2022 (Forecast) Amount change % Change Net sales 27,896 29,490 1,593 5.7 Operating Fastener 1,545 1,790 244 15.8 income Profit ratio 5.5 6.1 Net sales 7,182 7,290 107 1.5 A
Slide 17: Comparison with Medium-Term Management Plan (Consolidated)
Comparison with Medium-Term Management Plan (Consolidated) Year ending Dec 2022 NITTOSEIKO Mission “G” Compared to plan (Forecast) Final plans for the year 単位：百万円／％ Amount Amount Ratio (%) Amount Ratio (%) % Change change Net sales 42,500 100.0 55,000 100.0 12,500 △22.7 Operating income 3,400 8.0 4,
Slide 18: Capital Expenditures, Depreciation and R&D Expenses
Capital Expenditures, Depreciation and R&D Expenses Year ending 2022 Year ending 2020 Year ending 2021 unit：Million Yen (Forecast) Amount Amount Amount 設備投資 1,313 1,171 1,300 減価償却費 1,176 1,294 1,350 研究開発費 630 715 730 Main use of capital investment（2021） Capital investment for Introduction of Smart D
Slide 19: Shareholder Returns
Shareholder Returns ■Basic policy on profit distribution： Returning profits to shareholders＝Continue to provide stable dividends appropriate to business performance Interim dividend ：７．５yen Year-end dividend：８．５yen 年間 １３．０円 Annual dividend の配当 of 16.0 yen （円） NITTO Power-up NITTO Power-up NITTOSEIKO
Slide 20: Promoting Sustainability Management
３．Promoting Sustainability Management 20
Slide 21: Sustainability Management
Promotion of Sustainability Management [System development]. Sustainability Management Governance Structure Sustainability Committee collaboration Risk Management Committee Sustainability Promotion Office Each of the six promotion activities under the umbrella of the Sustainability Promotion Office
Slide 22: Environmental Action: Reduction of CO2
Promotion of Sustainability Management [Environmental Action] Reduction of CO₂ Governance Structure Sustainability Committee Collaboration Risk Management Committee Sustainability Promotion Office CO2 EMISSIONS TARGET⒯ SCOPE1＋2 Promotional Activities ・Environmental promotionー Environmental Committee
Slide 23: Engagement Certifications and Awards, Regional Development
Promotion of Sustainability Management [ES Improvement] Engagement Certifications and Awards Health Management Brand 2021 Nicotto7（Health Management） Certified in March 2021 Nicoto7 is a unique in-house Excellent Health Management Corporation 2021 initiative that sets seven items, （White 500） incl
Slide 24: Efforts by Segment – Fastener Business Initiatives
４．Efforts by Segment ～Fastener Business Initiatives～ 24
Slide 25: Fastener Business: Production expansion strategy, PT. NITTO ALAM INDONESIA
Fastener Business [Production expansion strategy] PT. NITTO ALAM Factory No. 2 (Bekasi INDONESIA Province) Establishment of integrated production line Header Heat Rolling treatment Inspection Plating Packing Facility start operation: May 2021 Capital investment purpose: Expand production capacity an
Slide 26: Fastener Business: Business expansion strategy
Fastener Business [Business expansion strategy] K.M. Seiko and Pinning Expansion of product lineup became subsidiaries and strengthening fastening solutions Expanding lineup of screws for the construction industry Small Screw size Big K.M. Seiko Kyoei Manufacturing K.M. Seiko FY2021 Results Strength
Slide 27: Fastener Business: Product strategy for industry
Fastener Business [Product strategy for industry] Dissimilar metal bonding -New Lightweight Reduce warpage of thin parts due to weight reduction technology to bond multiple materials firmly at the atomic level (reduce fuel cost) New Clinching Stud Bolts AKROSE HYBRID Self-tapping screws for soft met
Slide 28: Fastener Business: Customer Trends, Outlook
Fastener Business [Customer Trends, Outlook] ‘Lightweight’ Target Industry Outlook ‘Reduced Automobile ・Manufacturers have announced bullish production plans Outlook environmental to recover from the decline in production due to the impact’ shortage of semiconductors and are forecasting an upward tr
Slide 29: Efforts by Segment – Assembly Machine Business Initiatives
４．Efforts by Segment ～Assembly Machine Business Initiatives～ 29
Slide 30: Assembly Machine Business: Product Strategy for Industry
Assembly Machine Business[Product Strategy for Industry] Automation, Screw Tightening Tool for Cooperative Robots PD400UR series Screwdriver with torque display NX driver (with EtherCAT) human Screw tightening tool that can be mounted Enhanced function to communicate fastening collaboration on coope
Slide 31: Assembly Machine Business: Customer trends and outlook
Assembly Machine Business[Customer trends and outlook] Target Industry Outlook ‘Human collaboration’ Automobile ‘Energy Transition’ Outlook ・Capital investment in production facilities for new car ‘Labor Shortage’ models and new energy vehicles is expected to continue. ‘ICT’ ・ With the expected resu
Slide 32: Efforts by Segment – Control System Business Initiatives
４．Efforts by Segment ～Control System Business Initiatives～ 32
Slide 33: Control System Business: Product Strategy for Industry
Control System Business [Product Strategy for Industry] Measurement Mass flow meters, volumetric and Complies with the International harmonization explosion-proof Guideline Ex2015 other measurements and Current meter Explosion-proof batch counter Operation settings can be made instrumentation A line
Slide 34: Control System Business: Customer trends, outlook
Control System Business [Customer trends, outlook] ‘Environment’ Target Industry Outlook ‘High precision Chemical, Medical, Food Outlook measurement’ Demand for analyzers, moisture analyzers, and other analytical instruments is expected to continue to ‘Safety’ increase both in Japan and overseas aga
Slide 35: Efforts by Segment – Medical Business Initiatives
４．Efforts by Segment ～Medical Business Initiatives～ 35
Slide 36: Medical Business: Business alliance with TRANS GENIC
Medical Business [Business Growth Strategy] Business alliance We aim to expand new business in the medical field by leveraging the strengths of both companies with TRANS GENIC by strengthening collaboration between the development of products and materials of our Medical Business Division and the dr
Slide 37: Medical Business: Business Growth Strategy
Medical Business [Business Growth Strategy] State of progress World's first! Clinical study Development Clinical Trial Application Approval Start sales Medical bio-soluble high purity magnesium Preparing for clinical trials Preparation for biological safety testing Animal testing Procedures fo
Slide 38: Management Approach
NITTQSETKO 5, Management Apporoach 38
Slide 39: Management Approach
Management Approach We strive for 120% satisfaction in response to customer 1 requests. The purpose of management is the pursuit of wellbeing, 2 where everyone is happy. We aim to realize a sustainable society and company, 3 based on our founding spirit of contributing to society in the public inter
Slide 40: Forecasts of future performance contained in this document
Forecasts of future performance contained in this document are based on information currently available to the Company and certain assumptions that the Company considers reasonable. Actual results may differ from these forecasts due to a variety of factors. Important factors that may affect actual r