Financial Results for 1H/FY2024
November 7, 2024
NOK Corporation
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Overview of 1H/FY2024 Business Performance
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Summary of Consolidated Results for 1H/FY2024
Net sales and operating income increased year-on-year, exceeding the previous FCST in August.
- Net sales growth was partially supported by positive Fx impact. Both seal and electronic product segment showed OP increase.
- Significant growth in electronic product segment driven by earlier demand peak for smartphones this year.
- Ordinary income and net income also increased, but relatively smaller because of Fx gain (non-operating income) and gain from sale of investment securities (extraordinary income) recorded in 1H/FY23.
Net sales | 1H/FY23 | 1H/FY24 | Changes | |
354.2 bn yen | 393.7 bn yen | +39.4 bn yen | ||
Operating income | 4.9 bn yen | 19.1 bn yen | +14.2 bn yen | |
Net income | 12.2 bn yen | 13.6 bn yen | +1.4 bn yen |
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Four Strategic Initiatives of MTP
Steady implementation of strategic initiatives to construct a foundation for transformation toward mid-/long-term growth
Optimized | resource | ||||||
Growth driver | Management structure Leverage talents | ||||||
utilization |
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Seal Segment: Optimize Portfolio through Sales Expansion for Non-Japanese Customers
China: ratio of sales to non-Japanese customers increasing
(Sales to automobile industry and customer composition in China)
FY2024FCST | ||||||
FY2019 | ||||||
Non- | Japanese | |||||
Non- | Japanese | |||||
Japanese | 43% | |||||
Japanese | 53% | 57% | ||||
47% | ||||||
Sales: 1.9 billion RMB | Sales: 2.2 billion RMB |
- Sales composition to non-Japanese customer is increasing among growing total sales to automobile industry (5yr CAGR: approx. 4%).
- Higher market share of Chinese automakers is expected to continue.
- We aim to expand sales considering profitability as well as to meet customer needs through local development and production.
In ASEAN market, the number of deals with the non-Japanese customers is also increasing
- Launched a cross-country/region project for promotional activities covering the whole ASEAN market.
- In addition to continued efforts for existing business with Japanese customers, leverage group-wide collaboration with our team in China to meet customer needs as market penetration by Chinese automakers is anticipated going forward.
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Electronic Product Segment: Auto-Battery Continue to Be Growth Driver
Ratio of xEV production and BEV production to exceed 50% of total auto production in 2026 and mid-2030's, respectively
(Forecast for global automobile production)
BEV xEV other than BEV ICE
>50% | >50% |
CY20 | CY21 | CY22 | CY23 | CY24 | CY25 | CY26 | CY27 | CY28 | CY29 | CY30 | CY31 | CY32 | CY33 | CY34 | CY35 |
Source: IHS Aug-2024 |
Pursue growth with strategy by region leveraging our strength having production sites globally
Current key markets
• Europe: OEM-driven business to expand based on customers' trust supported by our track record.
• China: Expand sales considering profitability in the growing markets with various players.
Markets expected to expand
• Japan: Mass production started for HEV. Deals with Japanese auto makers increasing.
• North America: Prototype line in Mexico installed to address localization needs.
• ASEAN: Market entry by Chinese xEV makers. Utilize our production site in Thailand for business expansion including export business.
Need to develop flexible production system to prepare for unexpected demand fluctuations
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Summary of FY2024 Forecasts
OP to increase while net sales to decline. Revised previous forecasts in August with almost flat net sales and upward revision in operating income.
- Seal: In the sever market circumstances, to improve profitability through initiatives such as proactive price increase.
- Electronic product: Further strict profit control in the lower demand season. Establish solid foundation to continue to be profitable.
FY23 | FY24 Rev FCST | Changes | Previous FCST | Changes | ||
Net sales | (Aug. 2024) | |||||
750.5 bn yen | 745.5 bn yen | (5.0) bn yen | 744.7 bn yen | +0.8 bn yen | ||
Operating | 22.9 bn yen | 31.9 bn yen | +9.0 bn yen | 28.0 bn yen | +3.9 bn yen | |
income |
Initiatives to improve profitability and necessary investments toward sustainable increase of corporate value.
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Details of 1H/FY2024 Actual and FY2024 Forecasts
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1H/FY2024 Consolidated Results
Net sales
Operating income
Operating Margin
Ordinary income
Net income*
*Net income attributable to parent
1H/FY23 | 1H/FY24 | Changes | |
ACT | ACT | ||
354.2 | 393.7 | +11.1% | |
4.9 | 19.1 | +292.4% | |
1.4％ | 4.8% | +3.5pt | |
16.4 | 21.1 | +28.8% | |
12.2 | 13.6 | +11.7% |
(billion yen)
1H/FY24
FCST
387.6
14.2
3.7％
20.3
12.5
Disclosed on Aug. 2, 2024
Capital expenditure | 22.8 | 24.7 |
Depreciation | 23.5 | 23.3 |
Average Fx rate (JPY/USD) | 139.49 | 153.64 |
1H/FY24 Year-on-year Fx impacts Net sales: +20.6bil. , OP: +0.9bil.
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1H/FY24 Results: Net Sales and Operating Income by Segment
Net sales | |
Seal | Operating income |
Operating margin | |
Electronic | Net sales |
Operating income | |
product | |
Operating margin | |
Net sales | |
Other | Operating income |
Operating margin |
1H/FY23 | 1H/FY24 | Changes | |
ACT | ACT | ||
179.5 | 179.1 | (0.2)% | |
8.3 | 11.2 | +34.9% | |
4.6％ | 6.2% | +1.6pt | |
161.2 | 197.5 | +22.5% | |
(3.6) | 6.5 | - | |
(2.2)% | 3.3% | +5.5pt | |
13.6 | 17.0 | +25.5% | |
0.1 | 1.3 | - | |
0.9％ | 7.7% | +6.9pt |
(billion yen)
1H/FY24
FCST
178.0
7.7
4.3％
192.8
5.4
2.8%
16.8
1.1
6.4%
Disclosed on Aug. 2, 2024
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