Nippon Chemi-con CorporationTSE: 6997

Financial Results Explanatory Material (3Q FY2024)

· Issued by Nippon Chemi-con Corporation

Financial Results Explanatory Material

for 3Q FY2024

(Nine months ended December 31, 2024)

TSE Prime Market, Securities code: 6997

NIPPON CHEMI‐CON CORPORATION

February 2025

0

3Q FY2024 Consolidated Earnings

Summary

NIPPON CHEMI‐CON CORPORATION

February 2025

1

Trends in Quarterly Earnings

Net Sales

Operating

Unit: Million yen

Trends in Net Sales and Operating Margin

Margin (％)

50,000

15%

9th Medium-term Management Plan

10th Medium-term Management Plan

45,000

42,858

41,982

13%

41,137

40,000

38,439

38,602

39,203

11%

37,825

35,989

35,680

34,718

35,000

9.7%

9.4%

9%

33,383

33,118

30,618

30,931

30,911

30,000

28,405

6.9%

29,296

7%

27,670

7.2%

6.4%

7.2%

6.4%

6.2%

5.9%

5.8%

25,000

23,781

5.1%

5%

5.1%

5.4%

4.3%

4.3%

20,000

3%

1.8%

1.8%

1.4%

15,000

1%

10,000

-1.3%

-1%

5,000

-3%

0

-5%

FY2020

FY2021

FY2022

FY2023

FY2024

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

NIPPON CHEMI‐CON CORPORATION

February 2025

2

Overview of 1Q‐3Q FY2024 Consolidated Financial Results - YoY -

産機、ICT市場の不調により、売上高と営業利益は前年同期比で減収減益

1Q‐3Q

1Q‐3Q

Change

Rate of Change

Unit: Million yen

FY2023

FY2024

(%)

Net Sales

116,021

90,826

-25,195

-21.7%

Operating income

7,208

2,287

-4,920

-68.3%

Operating margin

6.2%

2.5%

-3.7pt

-

Net income

-22,141

13

+22,155

-

Capital investment

9,185

6,222

-2,963

-32.3%

Depreciation and

4,711

4,922

+210

+4.5%

amortization

R&D expenses

3,397

3,148

-249

-7.3%

Currency rate

143.29

152.57

Yen depreciation: 6.5%

vs USD (yen)

vs. EUR (yen)

155.29

164.83

Yen depreciation: 6.1%

NIPPON CHEMI‐CON CORPORATION

February 2025

3

１Q-3Q FY2024 Financial Results: Main Points

Net Sales

¥90.8 bn

Down 21.7% YoY

Operating income

¥2.3 bn

Down 68.3% YoY

Profit/loss attributable to

owners of parent

¥13 mn

Main Points

Net sales

  • 3Q sales decreased YoY due to a sluggish start to the quarter in the industrial equipment market, stagnant EV performance in the automotive electronics market, and compliance problems at automotive manufacturers, among other factors

Operating income

  • Operating income decreased YoY despite a decline in fixed costs thanks to efforts to control labor expenses and capital investments. We incurred utilization losses due to a decline in net production that was attributable to decreased net sales. Also, a stagnant automotive electronics market triggered a downturn in the product sales mix. These factors caused the gross margin ratio to decline.

NIPPON CHEMI‐CON CORPORATION

February 2025

4

3Q FY2024 Net Sales by Market and by Region

  • Percentage of Net Sales by Market

1Q-3Q

FY2023

1Q-3Q

FY2024

Automotive electronics

Industrial Equipment

New

Home

ICT

Other

Energy

appliances

34%

22%

23%

7%

6%

8%

36%

19%

4%

8%

26%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

  • Percentage of Net Sales by Region

1Q-3Q

FY2023

1Q-3Q

FY2024

Greater China

Japan

Europe

Americas

Other

36%

20%

15%

13%

16%

38%

22%

11%

12%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NIPPON CHEMI‐CON CORPORATION

February 2025

5

1Q-3Q FY2024 Operating Income - YoY -

Unit: Billion yen

(excluding selling price, forex, etc.)

NIPPON CHEMI‐CON CORPORATION

February 2025

6

FY2024 Consolidated Earnings Forecast

NIPPON CHEMI‐CON CORPORATION

February 2025

7

Outlook for Current Operating Environment and Three Major Markets

  • ICT market to remain strong on growth of AI market
  • Downward revision to production on sluggish automotive sales in Japan, Europe, and the US. Further delay in projected recovery for the industrial equipment market.

Market-specific Outlook

Market

1H FY2024

2H FY2024

Market Outlook

Automotive electronics

Previous

-While manufacturers in Japan, EU, and the US struggle with the

emergence of Chinese manufacturers, demand for electronic

components is projected to increase thanks to growth in the adoption

of automotive electronics

-Power backup units using DLCAP to expand from domestic to overseas

automotive electronics manufacturers

-Due to slower-than-expected recovery, full-scale market launch

Newenergy

Industrial equipment

projected from 2025 onwards.

-Changes in US government policy to trigger recovery in drilling

operations for petroleum and natural gas, driving increased demand

for high-capacitance capacitors

-Lower interest rates in the US to drive recovery in the number of new

home developments, which is projected to increase demand for power

conditioners used in solar power systems

-Continued increase in orders received for AI servers will lead to

increased power consumption, driving demand for high-capacitance

ICT

capacitors

-New business chances related to AI servers

  1. Compatibility for liquid immersion cooling
  2. Applications for power conditioning

NIPPON CHEMI‐CON CORPORATION

February 2025

8

FY2024 Full-Year Consolidated Earnings Outlook

FY2023

FY2024

YoY

Unit: Million yen*

Full-year Results

Full-year Plan

Change

Rate of Change (%)

Net Sales

150,740

133,000

-17,740

-11.8%

Operating income

9,422

7,200

-2,222

-23.6%

Operating margin

6.3%

5.4%

-0.9pt

-

Net income

-21,291

4,000

+25,291

-

ROA

-12.7%

2.4%

+15.1pt

-

ROE

-41.2%

7.2%

+48.4pt

-

Capital investment

11,195

8,500

-2,695

-24.1%

Depreciation and

6,339

6,400

+60

+1.0%

amortization

R&D expenses

4,489

4,200

-289

-6.5%

Currency rate

144.62

148.82

Yen depreciation: 2.9%

vs USD (yen)

vs. EUR (yen)

156.80

162.97

Yen depreciation: 3.9％

  • There are no revisions to the full-year consolidated forecast we announced on November 5, 2024. We will provide immediate notice in the event of the need for future revisions to our earnings forecast.

NIPPON CHEMI‐CON CORPORATION

February 2025

9