Nifco Inc. TSE:7988

Nifco : FY2024 Financial Results

Published June 12, 2025 at 4:42 a.m. UTC

Source: MarketScreener

‌FY2024 Financial Results‌

‌ FY2024 Summary of Consolidated Financial Results
FY2025 Full-Year Forecast
Mid-Term Management Plan (FY2025-FY2027)
Agenda

FY2024
Financial Results Summary

‌Despite the effect by the sale of subsidiaries engaged
in business for German customers, OP margin remained at a high level of 13.9% and achieved a record high by controlling variable cost.
Net income is also at highest level in the past due to the temporary
factors such as the sale of cross-shareholdings and tax effects.
FY2025
Full-Year Forecast

Profit is expected to increase despite of the assumption of strong yen (145 yen to the dollar).
Aiming for operating profit ratio of over 14%.
The impact of tariffs is not included as it is difficult to calculate at the moment.
Dividends for FY2025 is expected to increase by 5 yen. (80 yen/per share)
Mid-Term Management Plan

Aiming for a stable growth through continuous improvement
in installed value per vehicle, cost reduction, and fixed cost control.
- FY2027 Target : Sales - 369.0 billion yen, OP - 53.4 billion yen
  - ROE12~14％, ROIC18~20%
- Total Payout Ratio - over 45%

Summary

‌ FY2024 Summary of Consolidated Financial Results
FY2025 Full-Year Forecast
Mid-Term Management Plan (FY2025-FY2027)

Agenda

4,000

‌400.0

3,500

350.0

(Billions of yen)

The Sale of Subsidiaries Engaged in Business for German Customers

3,530

353.0

16.0%

14.0%

3,000

300.0

2,500

250.0

The Acquisition of Subsidiaries Engaged in Business for German Customers

Covid19

11%

13.9%

12.0%

10.0%

2,000

200.0

Korea 25%

8.0%

1,500

150.0

The Collapse of Lehman Brothers

6.0%

1,000

100.0

Japan 51%

4.0%

500

50.0 2.0%

年度

J日a系pan

韓K国or系ea

米

North

America

系

独G系ermおanよy aびndそoのthe他rs

自O動th車er th以an外

automobiles

シSモimンmoズns

08年度 09年度 10年度 11年度 12年度 13年度 14年度 15年度 16年度 17年度 18

OPM

0.0%

1. Financial Highlights

Historical Net Sales and Operating Profit Margin (4Q cumulative)

OP margin remained at a high level of 13.9% because of transfer of subsidiaries engaged in business for German customers and operational improvements.

‌Despite temporary factors in the business of North America, OPM maintained the same level QoQ.
Net income increased QoQ due to the loss on the sale of German subsidiaries being included as a tax

expense.

(JPN)

FY2023 4Q

Net Sales

97.9bn

86.1bn

90.1bn

FY2024 3Q

87.8bn

89.0bn

YoY

-9.0%

Operating profit	12.4bn	11.8bn	13.2bn	12.7bn	11.3bn	-8.7%


OP margin	12.7%	13.8%	14.7%	14.5%	12.7%	+0.1%pts


Net income1)	-5.1bn	8.8bn	6.6bn	12.5bn	16.8bn	-

EPS

-51.91yen

88.87yen

67.24yen

129.87yen

176.61yen -

FX rates

1USD=JPY140.7

1EUR=JPY152.1

1USD=JPY148.6

1EUR=JPY161.3

1USD=JPY152.3

1EUR=JPY164.7

1USD=JPY151.4

1EUR=JPY164.6

1USD=JPY151.7

1EUR=JPY164.0

1USD=JPY+11.0

1EUR=JPY+11.9

2. Overview of FY2024 4Q Consolidated

Highest level of sales, OP and OP Margin in the past year

‌(JPN)

FY2022

4Q cumulative

FY2023

4Q cumulative

FY2024

4Q cumulative

YoY

Net Sales

321.7bn

Operating profit

34.4bn

371.6bn

43.9bn

353.0bn 49.2bn

-5.0%

+12.0%

OP margin

10.7%

11.8%

13.9%

+2.1%pts

Net income1)

21.1bn

18.2bn

44.7bn

+145.3%

EPS

211.28yen

FX rates

1USD=JPY131.6

1EUR=JPY138.1

183.26yen

1USD=JPY140.7

1EUR=JPY152.1

461.95yen

1USD=JPY151.7

1EUR=JPY164.0

+152.1%

1USD=JPY+11.0

1EUR=JPY+11.9

•

Although sales decreased due to the transfer of subsidiaries engaged in business for German customers, profits increased YoY due to yen depreciation and steady progress in North America. OP margin remained high at 13.9%.

3. Overview of FY2024 4Q Consolidated

Achieved YoY Increase in Revenue and OP Margin Resulted in the Level of 13.9%.

‌+4.3bn

+1.0bn

+2.5bn

49.2bn

-4.4bn

43.9bn

+1.8bn

Operating profit (FY2023 full-year)

Effect of transfer German subsidiary

Sales factors

Marginal profit factors

Fixed cost factors

FX rate factors

Operating profit (FY2024 full-year)

•

Marginal profit ratio increase was driven by the improve of variable cost

such as material cost.

Fixed cost increase was mainly due to the labor cost increase.

4. FY2024 4Q Consolidated OP (YoY)

Operating Profit Analysis (YoY)

‌(Billions of yen)

Consolidated

YoY：Sales -5% OP +12%

3,716

3,530

371.6 353.0

Plastics

YoY：Sales -5.6% OP +14.7%

3,347

3,159

334.7 315.9

Bed

YoY：Sales +0.5% OP -8.4%

428

490

369

13.9%

11.8%

12.8%

15.5%

439

492

43.9 49.2

42.8 49.0

36.9

17.7%

37.1

16.1%

371

6.5 5.9

23年度

24年度

23年度

24年度

FY2023 FY2024 FY2023 FY2024

FY2023

FY2024

24年度

23年度

Recovered in other sales channels as well in addition to the favorable situation for hotels

Bed：Japan

Bed: Asia

No recovery in the business for China

189

18.9

14.3%

20.1

14.2%

18.0

21.2%

17.0

18.4%

201

180

170

2.7 2.8

23年度

24年度

FY2023 FY2024

3.8 3.1

23年度

24年度

FY2023 FY2024

5. FY2024 4Q by Segment 1

FY2024 4Q Sales and Operating Profit

‌(Billions of yen)

Japan

Sales and OP decreased because

of the decrease in sales volume

North America

OP increased by improving actions

Europe

Improved because of the sale of subsidiaries engaged in business for German customers

859

848

901

913

90.1

91.3

2.7%

2.4

9.4%

8.5

FY2023

FY2024

China

Despite the decrease in sales, OP

increased by improving actions

85.9 84.8

23年度

24年度

23年度

24年度

177

161

476

290

20.6%

17.7

19.1%

16.1

FY2023

FY2024

Asia(including China and India)

OP decreased because of the decrease in sales volume

111.1 110.8

47.6

6.5%

3.1

29.0

10.3%

3.0

FY2023

FY2024

India

The impact of new factory starts from next fiscal year

17.5%

19.5

19.2%

21.3

23年度

24年度

1,111

1,108

195

213

309

307

104

FY2023

30.9

17.2%

5.3

30.7 20.2%

6.2

FY2023

FY2024

19.5%

21.7%

10.4 2.2

FY2023

FY2024

1.8

9.3

FY2024

6. FY2024 4Q by Segment 1

FY2024 4Q Sales and Operating Profit

‌(JPN)

FY2023(Full-Year) FY2024(Full-Year) Change

Plan(FY2024)

CAPEX	10.0bn	19.7bn	+9.7bn	23.2bn


Depreciation	14.2bn	13.0bn	-1.2bn	12.8bn


R&D	4.0bn	4.4bn	+0.4bn	4.0bn


Operating CF	47.2bn	54.2bn	+7.0bn	42.6bn


Investment CF	-8.1bn	-23.8bn	-15.7bn	-23.0bn


Free CF	39.1bn	30.4bn	-8.7bn	19.6bn


Financial CF	-26.0bn	-35.1bn	-9.1bn	-29.5bn


Cash equivalent balance	142.0bn	141.0bn	-1.0bn	121.4bn

•

Free CF exceeded the plan because of yen depreciation and steady performance in North America.

Ending cash equivalent decreased slightly. Bonds will be redeemed from cash on hand

during FY2025.

7. CAPEX and Depreciation

Allocate funds with emphasis on cashflow-oriented management

‌FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Dividend (full year)

yen/share

yen/share (Plan)

Share buy-back

790k	710k	1.38mn	360k	800k	4.35mn
shares	shares	shares	shares	shares	shares
(1.4bn yen)	(1.4bn yen)	(4.8bn yen)	(1.2bn yen)	(3.0bn yen)	(16.0bn yen)

Shareholder return

Target

(payout ratio)

Dividend payout ratio ： 30%

Total payout ratio More than 45%

Actual

Dividends

: Share buybacks

43%

48%

52% 52%

35%

37%

36%

27%

21%

16%

36%

35%

17%

29%

30%

•

DPS is 75 yen, increased by 5 yen (increased by 11 yen from FY2023)

After 16.0-billion-yen buybacks, stay flexible in considering buybacks.

8. Shareholder returns

DPS is 75 yen, Consider Buybacks Assertively

‌ FY2024 Summary of Consolidated Financial Results
FY2025 Full-Year Forecast
Mid-Term Management Plan (FY2025-FY2027)

Agenda

‌Though the foreign exchange assumption is set more towards appreciation of the yen (1USD

= 145 yen), aim for an increase of OP by the improvement of installed value per vehicle, and thorough cost management.

FY2023

4Q cumulative

FY2024

4Q cumulative

FY2025

4Q cumulative

YoY

Net Sales

Operating profit (OP margin)	43.9bn (11.8%)	49.2bn (13.9%)	49.5bn (14.2%)	+0.6% (+0.3%pts)
Net income1)	18.2bn	44.7bn	30.6bn	-31.5%
EPS	183.26yen	461.95yen	315.76yen	-31.6%
ROE	7.8%	17.3%	12.0%	-5.3%pts

371.6bn

FX rates

ROIC

17%

1USD=JPY 140.7

353.0bn

18.8%

1USD=JPY 151.7

348.0bn 18.0%

1USD=JPY 145

-1.4%

-0.8%pts

1USD=JPY -6.7

9. FY2025 Full-Year Consolidated Forecast

Aim for record-high OP and 14% OP ratio

	‌FY2024(Actual)	FY2025(Plan)	YoY
CAPEX	19.7bn	21.0bn	+1.3bn

Depreciation	13.0bn	13.5bn	+0.5bn


R&D	4.4bn	4.8bn	+0.4bn


Operating CF	54.2bn	46.0bn	-8.2bn


Investment CF	-23.8bn	-23.0bn	+0.8bn


Free CF	30.4bn	23.0bn	-7.4bn


Financial CF	-35.1bn	-27.0bn	+8.1bn


Cash equivalent balance	141.0bn	137.0bn	-4.0bn

•

Plan to make meaningful capital investments in a timely manner.

Ending cash equivalent will be decreased due to capital investments and bonds

redemption.

10. CAPEX and Depreciation

Allocate funds with emphasis on cashflow-oriented management

‌FY2020 FY2021 FY2022 FY2023 FY2024 FY2025e

Dividend (full-year)

Share Buy-back

yen/share

710k shares (1.4bn)

yen/share

1.38mn shares

(4.8bn)

yen/share

360k shares (1.2bn)

yen/share

800k shares (3.0bn)

yen/share

4.35mn shares (16.0bn)

yen/share (plan)

ー

Return to Shareholders

Target

Dividend payout ratio ： 30%

Total payout ratio More than 45％

Actual

:Dividends

37%

29%

: Share buybacks

27%

21%

48%

36%

30%

52% 52%

16%

36%

35%

17%

25%

•

DPS is 80 yen, increased by 5 yen from FY2024.

Stay flexible in considering buybacks and aim for total payout ratio more than 45%.

11. Shareholder returns

DPS is 80 yen, Consider Buybacks Assertively

‌ FY2024 Summary of Consolidated Financial Results
FY2025 Full-Year Forecast
Mid-Term Management Plan (FY2025-FY2027)

Summary

‌Priorities Measures of Mid-Term Management Plan (1)
Further strengthening existing business model (rapid development and market expand of "Environment・Safety・ Comfort" products)
・Ensuring growth in all directions (ICE, HV, PHV, FCV, EV)

１

Growth through

existing business

Acquire business from superior Chinese OEMs

・Including businesses via global Tier 1

Growth through new channels
Actively invest resources in the Indian market and achieve solid results

Invest resources in growing markets and
increase earnings
Strengthen business in China and Asia as a new growth market

Bed business in Asian Market
Utilize M&A and alliances instead of sticking to our own knowledge and asset

Exploring and building

new businesses

・Brand improvement for each region

・Brand improvement for HR recruitment

・Brand improvement for customer

‌Penetration of "Nifco"
brand inside and outside the company
・Promoting investment in human resources
・Promoting diversity /strengthening training
・Revitalizing the organization by improved engagement

Promote

HR development

・Human resource development of digital talent and digital professionals

・Building and utilizing a platform that supports the use of information

Strengthen digitalization and IT

・Strengthen the Board of Directors function under the new organization

・Strengthen various committee functions

・Strengthen ESG management

9 Strengthen corporate governance system to continuously improve

corporate value

13. Priorities Measures of Mid-Term Management Plan (2)

‌bn yen

FY2024

FY2025

Budget

FY2027

Compare with

Target

FY2025

Actual

Sales

353.0 348.0 369.0 +6%

Operating profit

49.2 49.5 53.4 +8%

OP margin

More than

13.9% 14.2%

14%

Net income

44.7 30.6 35.0 +14.4%

ROE

17.3% 12% 12~14% -

ROIC

18.8% 18.0% 18~20% -

1USD=JPY151.7 1USD=JPY145 1USD=JPY145

14. Targets of Mid-Term Management Plan

‌(Billions of yen) (Billions of yen)

250

25.0

200

20.0

FY2022~FY2024

Actual

FY2025~FY2027

Estimate

150

EBT

121.0

153.0

Depreciation

41.0

40.0

Operating CF

138.7

144.0

38.6

60.0

Investing CF

-43.5

-100.0

CAPEX

15.0

100

10.0

5.0

Depreciation

'15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25e '26f 27f

減価償却

CAPEX

95.1

Shareholder returns

Free CF

38.6

Cash balance

141.1

44.0

55.0

120.0

15. Generating Cash Flow

‌Strengthen ROIC management

(Improve capital

efficiency)

Optimize Fixed Cost

(Appropriate B/S)

Improve profitability (Improve profit ratio)

Meaningful investment plan (Appropriate risk and return)

Maximize Cash Flow

Investment for

Further Growth

・Strengthen existing business

・Exploration of new business

M&A and alliance

Return to

Stockholders

・Over 45% total payout ratio

(Stable dividends and flexible stock buybacks)

16. Thorough Management Focused on Cash Flow to Maximize Corporate Value

Strengthen Management Structure

・IT and digitalization

・Human resource development

・Strengthen governance

‌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 various factors.