Nifco Inc. · TSE:7988
Nifco — H1 FY2022 Earnings Presentation
20 slides from Nifco's earnings presentation, Nov 8, 2022
Slide 1: Summary of Financial Results: First Half of FY2022
Summary of Financial Results: First Half of FY2022 November 8, 2022 All Rights Reserved. Copyright © 2021. Nifco Inc.
Slide 2: Agenda
Agenda 1. FY2022 Q2 Financial Overview 2. FY2022 Full-year Forecast 3. Mid-term plan forecast All Rights Reserved. Copyright © 2021. Nifco Inc. 2
Slide 3: Summary
Summary • Although there was an impact of reduced automobile production and increased expanses in 1H, Q2 Nifco achieved OP Margin of 10.3% thanks to Overview an increase in installed value per vehicle and thorough control of fixed cost • Exchange rate assumptions have been revised, but full-year res
Slide 4: Agenda
Agenda 1. FY2022 Q2 Financial Overview 2. FY2022 Full-year Forecast 3. Mid-term Plan Forecast All Rights Reserved. Copyright © 2021. Nifco Inc. 4
Slide 5: Financial Highlights
1. Financial Highlights Secured almost double-digit OP margin despite the severe business environment • Net sales remained at high level partly due to yen depreciation • Secured almost double-digit OP margin despite inflation, delayed production recovery, etc. Remained profitability (Billions of yen
Slide 6: Overview of FY2022 Q2 Consolidated
2. Overview of FY2022 Q2 Consolidated Achieved year-on-year increase in revenue and profit • Increase in net sales (yoy +9.3%) and OP (yoy +1.5%) due to yen depreciation, strong performance of Korean business, etc. • QoQ, net sales increased (+4.2%), but OP decreased (-7.5%) due to overall cost incr
Slide 7: Overview of FY2022 1H Consolidated
3. Overview of FY2022 1H Consolidated Sales and OP increased yoy. OP margin is solid at 10.3% • Although net sales increased YoY due to yen depreciation and strong business in Korea, OP decreased due to higher costs caused by inflation (raw material and labor costs, etc.) • However, profit margin re
Slide 8: FY2022 1H Consolidated Operating Profit (YoY)
4. FY2022 1H Consolidated Operating Profit (YoY)1) Operating Profit Analysis • Increase in net sales due to yen depreciation, strong performance in Korea, and increase in installed value per a vehicle led to increase in operating profit • Fixed costs such as labor costs increased due to production r
Slide 9: FY2022 1H by Segment (Net Sales)
5. FY2022 1H by Segment (Net Sales)1) Achieved increase in net sales in all regions except Europe • China was impacted by lockdown, but the subsequent recovery was strong, resulting in a YoY sales increase • European market is uncertain and sales declined slightly YoY. (JPY) FY2021 (1H) FY2022 (1H)
Slide 10: FY2022 1H by Segment (Operating Profit)
6. FY2022 1H by Segment (Operating Profit)1) Strong in Asia and bed, but OP decreased YoY due to slow recovery in Europe and US • Despite cost hikes, Asia and bed are well-managed, resulting higher OP with high profitability • Profitability in Europe and US declined YoY due to a slow recovery, and p
Slide 11: Customer base: installed value per vehicle and customer mix
7. Customer base (average installed value per vehicle and customer mix) Installed value per vehicle increased and customer diversification progressed • Nifco has a wide range of customers including Japanese, Korean and European OEMs, and the average installed value keeps increasing in FY2022 1H • MP
Slide 12: Agenda
Agenda 1. FY2022 Q2 Financial Overview 2. FY2022 Full-year Forecast 3. Mid-term Plan Forecast All Rights Reserved. Copyright © 2021. Nifco Inc. 12
Slide 13: FY2022 Forecast (Outlook): Revised Foreign Exchange Rate Assumptions
8. FY2022 Forecast (Outlook) 1 Revised Foreign Exchange Rate Assumptions • Revised FY2022 foreign exchange rate considering exchange rate trends (128yen/USD, 136 yen/EUR) • Trends in production recovery and progress in price negotiations are considered Previous (August) Current Period covered Assump
Slide 14: FY2022 Forecast: No change in forecasts
9. FY2022 Forecast No change in forecasts for FY2022 • Although FY2022 foreign exchange assumptions have been revised, full-year forecasts remain unchanged (1USD=JPY128, 1EUR=JPY136) FY2021 FY2022 (JPY) 1H 1H Full-Year Forecasts Achievement rate Net Sales 139.7bn 148.4bn 305bn 48.7% Operating profit
Slide 15: FY2022 Forecast (risk and actions)
10. FY2022 Forecast (risk and actions) Solid customer base and prompt response to supply issues and cost increases • Thoroughly implement measures such as fixed cost management to deal with uncertainties in the business environment, including automobile production trends and raw material costs. • Ri
Slide 16: CAPEX and Depreciation
11. CAPEX and Depreciation CAPEX was restrained vs the plan, but remained at the same level as FY2021 1H • Due to sluggish performance in Europe and US, operating CF and free CF decreased yoy • Continued emphasis on cashflow-oriented management FY2021(1H) FY2022(1H) Change Plan (FY2022) (JPY) CAPEX
Slide 17: Shareholder returns
12. Shareholder returns Total payout ratio exceeding 30% through dividends and share buybacks • We commit dividend payout ratio of 30% and pays stable dividends. • In addition, in recent years, we have achieved continuous total payout ratio which is over dividend payout ration by flexible share buyb
Slide 18: Agenda
Agenda 1. FY2022 Q2 Financial Overview 2. FY2022 Full-year Forecast 3. Mid-term Plan Forecast All Rights Reserved. Copyright © 2021. Nifco Inc. 18
Slide 19: Mid-term management plan
13. Mid-term management plan Maintain quantitative mid-term plan targets in FY2023 • Sales activities of automotive parts for FY2023 models progressed as expected • In the bed business, strong demand for high quality mattresses in China and Southeast Asia Outlook for FY2022 and beyond Mid-term targe
Slide 20: Forward-looking statements
Forward‐looking statements or projections included in this document, including earnings projections, are based on currently available information and certain premises that are judged to be rational at the time of this writing. Actual results may differ greatly from the forecast figures depending on