Nippon Chemi-con CorporationTSE: 6997

Financial Results Explanatory Material (FY2024)

· Issued by Nippon Chemi-con Corporation
Financial Results Explanatory Material for FY2024 (FY ended March 31, 2024)


TSE Prime Market, Securities code:6997

Net Sales

Unit: Million yen

50,000

Trends in Net Sales and Operating Margin

Operating Margin (%)

45,000

9th Medium-term Management Plan

42,858 41,982

10th Medium-term Management Plan

41,137

11%

40,000

35,989

38,439 38,602

37,825

9.7%

9.4%

39,203

9%

35,680 34,718

35,000

30,000

28,405 27,670

30,931

33,383 33,118

7.2%

7.2%

6.4%

6.2%

5.9%

6.9%

5.8%

6.4%

29,296

31,858

30,618 30,911 7%

25,000

23,781

4.3%

5.1%

5.4%

5.1%

5%

4.6%

4.3%

20,000

15,000

10,000

5,000

-1.3%

1.8%

1.8%

1.4%

3%

1%

-1%

0

FY2020 Q1

Results

Q2

Results

Q3

Results

Q4

Results

FY2021 Q1

Results

Q2

Results

Q3

Results

Q4

Results

FY2022 Q1

Results

Q2

Results

Q3

Results

Q4

Results

FY2023 Q1

Results

Q2

Results

Q3

Results

Q4

Results

FY2024 Q1

Results

Q2

Results

Q3

Results

Q4

Results

-3%

Performance fells significantly below plans due to delays in the recovery of the industrial equipment market

Unit: Million yen

FY2023

FY2024

Change

Rate of Change

(%)

Net Sales

150,740

122,684

-28,055

-18.6%

Operating income

9,422

3,740

-5,681

-60.3%

Operating margin

6.3%

3.0%

-3.3pt

-

Profit/loss attributable

to owners of parent

-21,291

37

+21,328

-

* Excluding extraordinary loss related to antitrust law

8,313

1,011

-7,302

-87.8%

ROE

-41.2%

0.1%

+41.3pt

-

Capital investment

11,195

7,631

-3,563

-31.8%

Depreciation and amortization

6,339

6,640

+301

+4.8%

R&D expenses

4,489

4,228

-260

-5.8%

Average exchange rate: USD (yen)

144.62

152.58

Yen depreciation: 5.5%

and sluggish growth for EVs in the automotive electronics market, as well as a stagnant EU market

Main Points of FY2024 Financial Results

Net Sales

  • Net sales (Market Trends)

    Automotive: Sales were low due to sluggish EV growth and a stagnant EU market.

    Industrial equipment:

    Customer inventory optimization progressed but market recovery was delayed as capital investments were stagnant outside of data center-related investments.

    ICT: Server demand for data centers remained favorable.

  • Operating income

Net sales and production decreased significantly, resulting in utilization losses. In addition to delays in the recovery of the industrial equipment market, performance was also impacted by a downturn in the automotive electronics market.

We aggressively worked to constrain fixed costs and improve production efficiency (OEE improvements, etc.) but underperformed previous fiscal year results by roughly 60%.

122,684 million yen

-18.6% YoY

Operating income

3,740 million yen

-60.3% YoY

Profit attributable to owners of parent

37 million yen

Previous FY:

-21,291 million yen

□ Percentage of Net Sales by Market Net Sales Trends by Market

ICT+3pt, automotive electronics +2pt = industrial equipment, new energy -2pt

Unit: Billion yen

150.7

Automotive electronics 50.7

122.7

43.9

Industrial Equipment

33.6

24.3

ICT 34.8

31.5

180

Automotive

electronics

34%

Industrial Equipment 22%

New Energy 6%

Home appliances 8%

ICT 23%

Other 7%

36%

20%

4%

8%

26%

6%

150

120

FY2023

FY2024

90

60

30

0

0% 20% 40% 60% 80% 100%

FY2023 FY2024

Greater China +5pt, Japan, Others +1pt = Europe -4pt, Americas -3pt

□ Percentage of Net Sales by Region Net Sales Trends by Region

FY2023

FY2024

180

Greater China 35%

Japan 20%

Europe 15%

Americas 14%

Other 16%

40%

21%

11%

11%

17%

150

120

90

60

30

0

150.7

Other 23.5

Americas

20.7

Europe

22.6

Japan

30.5

Greater China 53.4

Unit: Billion yen

122.7

20.8

14.0

13.1

26.2

48.6

0% 20% 40% 60% 80% 100%

FY2023 FY2024

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