FY2024 Financial results briefing（1313KB）

FY2024

Financial results briefing

2025.5.20

Shindengen Electric Mfg. Co., Ltd. Stock Code：6844

Bharat Mobility Show2025 January 2025

1

Contents

01

FY2024 Financial results

Forecast of FY2025

Director & Executive Officer

Osamu Ukegawa

02

The17th Medium Term Business Plan Acquisition of Shares in Newly Established Power Electronic Device Business Company

President Nobuyoshi Tanaka

Atrium of the Asaka Office 2

3

Unit: billion yen

Unit：JPY/USD

• While net sales increased from

  FY2023		FY2024		YoY
  Net sales	1,023	1,058 Impact of exchange rates 27		＋3.5％
  Operating Profit	13	Impact of exchange rates	1 10	▲89.9％
  Operating Margin	1.3％	0.1％		▲1.2pt.
  Ordinary Profit	17	▲5		ー
  Profit attributable to owners of parent	▲7	▲24		ー

  the previous period, this was partly aided by favorable exchange rates.

• The Electronic device business slumped due to the prolonged economic slowdown in China.

• Ordinary profit was negative due to foreign exchange losses and

  other factors.

  Non-Consolidated 143.95 Volume Rate

  153.04

  ＋9.09JPY

• Due to the implementation of structural reforms in the Electronic device business, an extraordinary loss of approximately 1.4 billion yen was recorded for the full period.

Unit: billion yen

Automotive

Home Appliance

Industrial Machine

＋3.7％

+2.6％

▲14.1 ％

Unit: billion yen

Shindengen Affiliated companies Net sales results for 2Wheels

Indonesia

Vietnam

Thailand

India

+6％

+4％

▲11％

+15％

24/3

25/3

24/3

25/3

24/3

25/3

24/3

25/3

FY2024 Financial results(Energy systems & solutions, other)

Unit: billion yen

Telecom

EV chargers

＋91.7％

＋30.0％

24/3

25/3

24/3

25/3

24/3

Price

Increases

+20

Unit: billion yen

• Addressing the impact of soaring material

  costs by reflecting them in prices.

  Exchange rate

  fluctuations

  +10

  • Reversal of allowance, etc., and occurrence

    Reversal of provision for +9

    product warranties

    of temporary effects.

    Inventory

    write-down

    ▲12 Material

    costs

    ▲9 Expenses

    others

    ▲6

    Labor costs

    ▲3 Decreased sales

    ▲21

  • As a measure related to structural reforms,

    inventory write-down and

    disposal losses were recorded as costs.

  • Labor costs have increased due to pay rises and

increased employee numbers.

25/3

Unit: billion yen

Unit: billion yen

• Current assets increased due to the securing of cash and deposits.

• Fixed assets decreased by

  approximately 3 billion yen due to mark-to-market revaluation of investment securities, etc.

• Fixed liabilities decreased due to

  the recording of deferred tax assets.

• The recording of losses and payment of dividends in the fiscal

  year ending March 2025 reduced retained earnings and reduced shareholders' equity.

• Due to the increase in borrowed funds,

interest-bearing liabilities increased.

11

PV Inverters EV Chargers

ECUs, PCUs for Motorcycles DC/DC converters for Automobiles Inverters for Generators

Unit: billion yen

Unit：JPY/USD

Unit: billion yen

25/3

Increased sales

+21

Inventory

write-down

+17

Structural Reforms

+15

• Conducted in the previous period in

  connection with structural reforms

  One-time effects of inventory write-downs and loss on disposal will be eliminated.

• An improvement of 1.5 billion yen is expected

  +8

  Price Increases

  Cost reduction

  from structural reforms.

  26/3

  One-time effects

  Labor ▲6

  Costs

  24

  Expenses Others

  ▲7

  Exchange rate

  fluctuations

  ▲10

  ▲15

• The exchange rate is assumed to be stronger than in the previous period.

• The effect of the reversal of allowance recorded in the previous period

will be eliminated.

Unit: billion yen

Dividend Per Share

Annual Dividends per share

COVID-19

Structural Reforms

Structural Reforms of Electronic Device

12.5

12.5

62.5 0

2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3 2026/3

（Plan）

（Forecast）

＊Effective October 1, 2017, the Company consolidated its common shares at the ratio of 10 shares to 1 share. Accordingly, earnings per share have been calculated as if this consolidation of common shares was conducted at the beginning of the previous fiscal year

In accordance with our dividend policy, we have generally maintained

stable dividends.

Dividends for FY2024 and FY2025

were determined based on business conditions

at that time.

17

the 16th Medium Term Business Plan Policy

"Building a foundation aimed at realization of the long-term vision"

1

Earnings structure construction

2

Although the device business promoted the shift to larger diameter wafers, profitability declined across the entire business due to the significant impact of a decrease in operations due to lower sales, soaring raw material and energy prices, and rising labor costs.

Building a foundation for expansion

3

The strengthening of competitive car electronics components utilizing in-house modules is progressing, with a focus on the Indian market. On the other hand, the outlook for EV chargers and EV-related products remains uncertain.

Focus resources on product groups which can reduce greenhouse effect gases

18

A department was launched to promote the expansion of EV sales, and resources were reallocated to it to expand the product lineup but the EV market has slowed down recently.

Remaining issues

1,180

Net Sales Operating profit Operating profit margin

6.0％

19

1,010

1,023

1,058

3.6％

1.3％

0.1％

FY2024 original target FY2022 FY2023 FY2024

3.5％

ROA

8.3％

ROE

Deterioration of

the Electronic device business results

Build a stronger business foundation

Measures

01

02

Production

Optimize production efficiency to reduce or eliminate

production of low-volume products

Logistics

Secure production space, and reduce logistics costs to

outsource the logistics and shipping operations

Sales

03

reorganizing the system to suit the needs of the region

04

Personnel reduction

solicit voluntary retirement at group companies in Japan and overseas in order to make the personnel structure

Result

Structural reforms were implemented with the aim of improving earnings by

1.5 billion yen.

Including the effects of other additional measures, totaling at least 1.5 billion yen,

20

have already been reflected in the earnings forecasts for FY2025.

17th Business Plan Policy

moving into a growth stage by establishing

a solid business foundation and improving capital efficiency

Earning structure construction

We will build a system to improve profitability through a total package from procurement

to design, manufacturing, and sales.

We will concentrate resources on businesses and products that will become future core businesses and nurture them into pillars of our business by 2030.

Long Term Vision 2030

We will allocate resources on a priority basis toward developing the Indian market and will undertake this challenge with the

full support of the entire company, including both business and non-business divisions.

By proactively advancing our business activities and investing in human resources, we will provide environmentally friendly products to society and build a sustainable growth cycle toward the realization of decarbonization.

Earning structure construction

Cooperation on the

vertical axis

Deepening manufacturing through a total package of

design, procurement, manufacturing, and sales

April 2025

Organizational

We will build a system to improve profitability through a total package from procurement to design, manufacturing, and sales.

restructuring

Power Device

Power Unit

Power Systems & Solutions

Cooperation on the horizontal axis

Monozukuri Center

Technology & Development Center

Sales Div. group

Departments with the same functions cooperate

will become future core businesses

Concentrating resources on growth sectors We will concentrate resources on businesses and products that

and nurture them into pillars of our business by 2030.

Next generation

businesses

Expansion

businesses

SiC

Gallium

oxide

Next GEN DC

Converter

PCU

Low

MOS

2W EV

New Products

IPM

Chargerse

EV

chargers

Regulators

ECU

For Motorcycles

DC

Converters

Diodes

PV

Inverters

Restructuring

businesses

Foundational

businesses

Delays in electrification in the mobility field

Current core products are expected to continue driving business growth

Based on the profitability of our core products

after 2030, we will concentrate our resources on products and businesses that will become the pillars of our operations

EV-related products

We will build a growth cycle toward our long-term vision

Strengthen

supply chain

Aim to establish a system

for expanding sales throughout India

Shindengen India's second plant

will be operational in 2027.

Break away from dependence The mainstay ASEAN

on Greater China through motorcycle market is reaching

business structural reforms a state of saturation

We will continue to focus our efforts on India, which has a high affinity with our business fields

Development of target markets

We will allocate resources on a priority basis toward developing the Indian market and will undertake this challenge with the full support of the entire company, including both business and non-business divisions.

Sustainability material issues

Promotion of sustainability management

By proactively advancing our business activities and investing in human resources, we will provide environmentally friendly products to society and build a sustainable growth cycle toward the realization of decarbonization

Value provided by environmentally

friendly products

Harmony between

the environment and our business activities

Creation of diverse and rewarding workplaces

(Well-being)

Realizing decarbonization

through our business

Strengthening of a sustainable,

fair, and transparent management foundation

SDK Engagement Index

Promoting women's participation and advancement in the workplace

63.1

64.0

58.9

(male childcare leave rate)

54.3

44.4

73.9 81.5

100.0

Cost of Capital and Stock Price

26

• Management targets for the FY2027(consolidated)

Net Sales 120.0

billion yen

Long Term

Operating profit margin

5.0％

Vision 2030

ROE 6.0％

Capital Investment

（3-year cumulative total） ¥30.0 billion

R&D costs

(3-year cumulative total) ¥14.5 billion

17th Mid term Business plan FY2025～FY2027

Moving into a growth stage by establishing a solid business foundation and improving capital efficiency

16th Mid term Business plan FY2022～FY2024

27

28

Acquisition of shares in a newly established company spun off from

the power device business of Kyocera Corporation, making it a subsidiary

※will be announced as soon as it is determined.

Shindengen

Power Device

Kyocera

Power Device

Increased demand for compatible packages since

the COVID-19 pandemic

Before

Number of

324 products

After

961products

By transitioning to 8-inch wafers, we aim to enhance price

One of the world's largest inch-sized diode wafers

Acquire new package line-up Utilization of own chips

With the acquisition of new packages, offering a comprehensive lineup. Ability to offer a wide range of products

Utilizing our own chips to enhance the value of existing products.

Strengthening competitiveness with appealing products.

Expanding product lineup

by combining newly acquired packages with own chips