Slide 1: Financial Results Half-Year Ended September 30, 2024
Financial Results Half-Year Ended on September 30,2024 (Q2 FY03/25 Results) Hakudo Co., Ltd. (7637) November 21, 2024 2024 © Hakudo Co., Ltd. All rights reserved.
Slide 2: Table of Contents
Table of Contents 1． Q2 FY03/25 Financial Results P 2 2． FY03/25 Financial Forecasts P20 3． Progress of Mid-Term Business P24 Strategies 4. Initiatives for Sustainability P29 Management 1 2024 © Hakudo Co., Ltd. All rights reserved.
Slide 3: 1. Q2 FY03/25 Financial Results
1. Q2 FY03/25 Financial Results 2 2024 © Hakudo Co., Ltd. All rights reserved.
Slide 4: Result Highlights
Result Highlights Net sales Gross profit Ordinary profit 32,488 million yen 5,194 million yen 1,777 million yen (up 13.2％ YoY) (up 13.9％ YoY) (up 25.2％ YoY) Q2 FY03/25 summary Net sales • Sales increased by13.2% from the previous consolidated interim accounting period, mainly due to increasing sales
Slide 5: Summary of Consolidated Statements of Income (PL)
Summary of Consolidated Statements of Income (PL) • Net sales increased by JPY3,778 million YoY because sales volume of OA devices industry and the demand of semiconductor production equipment (SPE ) for China and generative AI increased. • Ordinary profit increased by JPY357 million YoY due to the
Slide 6: Factors Affecting Year-on-Year Change in Net Sales
Factors Affecting Year-on-Year Change in Net Sales • Unit sales prices of both Standard stock items and Special-order items increased, and the impact of an increase in sales volume was significant, increasing by JPY3,778 million YoY. Unit: Million yen 892 61,602 31,775 425 32,488 469 1,212 779 Speci
Slide 7: Quarterly Sales Trends
Quarterly Sales Trends • Though the sales had remained sluggish due to the stagnation of the semiconductor production equipment(SPE) industry since FY03/23 4Q, the sales showed continuous recovery in FY03/24 Q2. Sales in FY03/25 Q2 is the highest (JPY16,742 million) in the past five years. Unit: Mil
Slide 8: Net Sales by Product Category
Net Sales by Product Category • The sales of the entire product categories increased on a QoQ due to increase in both the sales volume and unit selling prices caused by a recovery of semiconductor production equipment(SPE) industry. Unit: Million yen FY03/24 FY03/25 Vs. Q2 FY03/24 Q1 Q2 Q3 Q4 Q1 Q2
Slide 9: Composition Ratio of Net Sales by Industry (Japan)
Composition Ratio of Net Sales by Industry (Japan) • Both of sales ratio and sales to Semiconductor/FPD production equipment industry , OA devices , and Aircraft/aerospace related industry increased significantly QoQ. • Sales to other machine tools industry and Automobiles/motorcycles and dies incre
Slide 10: Financial Performance by Segment
Financial Performance by Segment • Though the Company posted an operating loss by JPY93 million in North America segment, ordinary profit recorded JPY18 million and increased by JPY20 million YoY due to Non-operating incomes such as foreign exchange gains of Yen-denominated parent-subsidiary interco
Slide 11: Sales Ratio by Segment
Sales Ratio by Segment • 【 Japan 】Aluminum products are a large proportion of sales and sales ratio of copper products and stainless steel products is the same. due to the large sales to the semiconductor manufacturing equipment industry. • 【North America】 Stainless steel products are a large propor
Slide 12: Factors Affecting Year-on-Year Change in Ordinary Profit
Factors Affecting Year-on-Year Change in Ordinary Profit • Profits of both Standard stock items and Special-order items significantly increased due to the impact of an increase in sales volumes and unit selling prices. • Though logistics & labor costs and depreciation increased, profits increased JP
Slide 13: Quarterly Ordinary Profit Trends
Quarterly Ordinary Profit Trends • Ordinary profit increased by JPY48 million QoQ due to an increase in sales and inventory revaluation impact. • Compared to the Q1 and Q2 of FY03/24, ordinary profit decreased by JPY215 million because the cost of goods sold such as manufacturing expenses temporaril
Slide 14: Balance Sheet (BS)
Balance Sheet (BS) • Accounts receivable-trade, Inventories, Accounts payable-trade increased due to the impact of recent increase in net sales. • Dollar-denominated goodwill amount increased due to the yen depreciation compared to the end of the previous fiscal year. Unit: Million yen As of March 3
Slide 15: Cash Flows
Cash Flows • Cash flow from operating activities was -JPY143 million, mainly due to an increase in notes and accounts receivable-trade, inventories resulting from higher sales and income tax payments. • Cash flows from investing activities was -JPY571 million mainly due to Factory Capex and IT inves
Slide 16: Change of capital and IT investment
Change of capital and IT investment • The Company made a capital and IT investment for introducing a Laser processing machine and an overseas EC software package in FY03/25. • The Company plans to invest in IT system to start up E-commerce business in China and America in the second half of FY03/25.
Slide 17: Business Environment (1)
Business Environment (1) Raw Material Market Trends for Aluminum, Copper and Stainless Steel • Though Aluminum ingot prices, which had continued to rise since the end of March 2023 due to the yen depreciation and increase in the price of LME, the price of the last 3 months decreased. • Electrolytic
Slide 18: Business Environment (2)
Business Environment (2) Comparison of Semiconductor Production Equipment Sales and Standard Stock Items Sales • Inventory procurement and production volume adjustments by semiconductor manufacturers bottomed out due to generative AI and expansion of demand in capital investment for semiconductor in
Slide 19: Business Environment (3)
Business Environment (3) Comparison of Machine Tool Orders and Standard Stock ItemsSales • Machine tool industry has been delayed in recovering the demand because capital investment was put off due to a concern of economic slowdown such as inflation and high Interest rates • Compared to the Q2 (July
Slide 20: Business Environment (4)
Business Environment (4) Ratio of Hakudo aluminum product sales to rolled aluminum product shipment value • Hakudo’s aluminum product sales are around 30% of rolled aluminum product shipment value, and our industry market share has remained stable. Ratio of Hakudo aluminum Rolled aluminum sales vs.
Slide 21: 2. FY03/25 Financial Forecasts
2. FY03/25 Financial Forecasts 20 2024 © Hakudo Co., Ltd. All rights reserved.
Slide 22: FY03/25 Financial Forecasts
FY03/25 Financial Forecasts • Though the Company did not achieve an ordinary profit target in Q2 FY2025, targets for Net sales and operating profit, Profit attributable to owners of parent were accomplished. • On the other hand, the Company left its full-year forecasts unchanged, taking into account
Slide 23: Shareholder Returns (Dividends)
Shareholder Returns (Dividends) • Based on the upward revision of Q2 FY03/25 Financial Forecasts, the mid-term dividend was revised by 49 yen per share (+9 yen from the beginning of the fiscal year 2025 ). • The annual dividend for the FY03/25 is expected to be 85 yen per share. Dividend Forecast fo
Slide 24: Shareholder Returns (Shareholder Benefit Plan)
Shareholder Returns（ Shareholder Benefit Plan） • On January, the base date will be changed from the end of September of each year to the end of March of each year. • There will be no changes other than the base date in terms of the number of units held and points awarded. Shareholder Benefit Plan Sh
Slide 25: 3. Progress of Mid-Term Business Strategies
3. Progress of Mid-Term Business Strategies 2024 © Hakudo Co., Ltd. All rights reserved. 24
Slide 26: Planned Initiatives for FY03/25
Planned Initiatives for FY03/25 • The main initiatives in line with our key strategic policies for FY03/25 are as shown below. Key Strategic Policies Planned Initiatives for FY03/25 (Excerpt) Established in the Medium-Term Management Plan Increase the variety of items offered, with a goal of growi
Slide 27: Progress of Mid-Term Business Strategies (1)
Progress of Mid-Term Business Strategies (1) (1) Strengthen and expand customer base, raise profit margins through Hakudo Network Service (E-Commerce) evolution Hakudo standard stock companies using 12,800 companies EC Packages for 5,500 items Foreign Countries ＋ registered users ・Thailand introduce
Slide 28: Progress of Mid-Term Business Strategies (2)
Progress of Mid-Term Business Strategies (2) (2) Expand growth fields, strengthen sales Semiconductor Automotive Aircraft/aerospace industry industry industry Q2 FY03/25 Q2FY03/25 Q2 FY03/25 sales ratio sales ratio sales ratio 42.2％ 5.1％ 4.3％ Consolidate the industry through Obtaining new customers
Slide 29: Progress of Mid-Term Business Strategies (3)
Progress of Mid-Term Business Strategies (3) (3) Overseas business expansion Overseas Net Sales and Sales Ratio Unit: Million yen 10,000 Overseas 海外売上⾼ sales 20% 15% 16% 8,000 Ratio of sales for overseas 海外向け売上⾼⽐率(実績) 15% 6,000 9% 10% 8% 10% 4,000 5% 2,000 0 0% FY03/21 2021年 FY03/22 2022年 FY03/23 20
Slide 30: 4. Initiatives for Sustainability Management
4. Initiatives for Sustainability Management 2024 © Hakudo Co., Ltd. All rights reserved. 29
Slide 31: Progress in Sustainability Management (1/3)
Progress in Sustainability Management (1/3) • The status of efforts to date for action items and targets pursued by subcommittees established under the ESG/SDGs Management Committee are as follows. This information is reported to the Board of Directors, which in return provides proposals and advice
Slide 32: Progress in Sustainability Management (2/3)
Progress in Sustainability Management (2/3) Material Initiatives FY03/27 Targets FY03/27 KPIs Q2 FY03/25 Efforts issues Contribute to the development of next-generation Contribute to future technologies and the strengthening of human Visited university research exhibitions and explored Number of
Slide 33: Progress in Sustainability Management (3/3)
Progress in Sustainability Management (3/3) Material Initiatives FY03/27 Targets FY03/27 KPIs Q2 FY03/25 Efforts issues Executed compliance training sessions Zero violations Conduct education aiming for zero tolerance. Zero compliance violations Conducted comprehension checks in compliance. En
Slide 34: Sustainability Management Initiatives
Sustainability Management Initiatives Hakudo is conducting a wide range of activities, including the creation of employment through its own farms, in addition to contributing to society through manufacturing. Super Minimum Hakudo Farm Koma Battle Shita-machi Bobsleigh Challenge We operate Hakudo Far
Slide 35: Thank you very much for your attention.
Thank you very much for your attention. ■Hakudo Official Social Media Accounts We have created official accounts on LINE and Facebook to regularly disseminate product introductions, exhibition announcements and other useful information. Please use the QR codes to follow Hakudo online! ■Disclaimer Th