Nippon Chemi-Con Corporation · TSE:6997
Nippon Chemi-Con — Q2 2023 Earnings Presentation
25 slides from Nippon Chemi-Con's earnings presentation, November 2023
Slide 1: Financial Results Explanatory Material for 2Q FY2023
Translation Financial Results Explanatory Material for 2Q FY2023 (Six months ended September 30, 2023) TSE Prime Market, Securities code: 6997 NIPPON CHEMI‐CON CORPORATION November 2023 0
Slide 2: Overview of 1H FY2023 Consolidated Results
Translation Overview of 1H FY2023 Consolidated Results NIPPON CHEMI‐CON CORPORATION November 2023 1
Slide 3: 1H FY2023 Results
Translation 1H FY2023 Results Cost reductions and revision of selling prices absorbed negative factors caused by the surge in the price of materials and electricity, resulting in growth in both net sales and profit. (Million yen) 1H FY2022 1H FY2023 Change % Net Sales 77,041 80,341 +3,300 +4.3% Oper
Slide 4: 1H FY2023 Consolidated Results: Main Points
Translation 1H FY2023 Consolidated Results: Main Points １H Main Points Net sales ・ Markets Automotive electronics: Demand was firm due to resolution of the semiconductor ¥80.3 bn shortage. Progress on electrification boosted demand for parts even higher. Up 4.3% YoY Industrial equipment: Economic un
Slide 5: 1H FY2023 Operating Income - YoY
Translation 1H FY2023 Operating Income - YoY - The surge in the price of materials and electricity was roughly equal to the benefits from cost reductions and selling price revisions. (Billion yen) NIPPON CHEMI‐CON CORPORATION November 2023 4
Slide 6: FY2023 – Consolidated Full-Year Forecast
Translation FY2023 – Consolidated Full-Year Forecast NIPPON CHEMI‐CON CORPORATION November 2023 5
Slide 7: FY2023 – Full-Year Forecast
Translation FY2023 – Full-Year Forecast We will work to reduce the price of materials and electricity, SG&A expenses, and other costs to address a slowdown in sales in the second half. (Million yen) 2H Full-year 1H Full-year 1H YoY FY2023 FY2023 FY2022 FY2022 FY2023 (%) (forecast) (forecast) Net sal
Slide 8: 2H FY2023 Consolidated Forecast: Main Points
Translation 2H FY2023 Consolidated Forecast: Main Points 2H Main Points Net sales ・Markets Automotive electronics: Pent-up demand in the U.S., Europe, and Japan will remain just as ¥72.7 bn strong as before. Steady progress will be made on the resolution of parts inventory problems during the pandem
Slide 9: 2H FY2023 Forecast Operating Income – vs 1H
Translation 2H FY2023 Forecast Operating Income – vs 1H - The decline in sales from the slump in the industrial equipment and home appliance markets will be roughly equal to the benefits from improvement in the price of (Billion yen) materials and electricity, cost reductions, and improvement in SG&
Slide 10: 10th Medium-term Management Plan Policy: Hybrid capacitor business
Translation 10th Medium-term Management Plan Policy Hybrid capacitor business • Building a production structure with increased capacity is essential because this is a highly profitable business for our company with a high market growth rate. It is a main use of proceeds from financing this time. Mar
Slide 11: Status of development of new hybrid capacitor products
Translation 10th Medium-term Management Plan Policy Status of development of new hybrid capacitor products HXK Series Conductive polymer hybrid aluminum electrolytic capacitors (Scheduled for release in April 2024) ● Positioning of the development of this series: Achieve No.1 performance for product
Slide 12: Overview of investment in and progress on hybrid capacitors
Translation 10th Medium-term Management Plan Policy Overview of investment in and progress on hybrid capacitors • This fiscal year is the preparation stage for expanding production capacity. • By increasing production efficiency by building a new production line and conversion to a smart factory, We
Slide 13: Increase labor productivity by 2x in 10 years!!
Translation 10th Medium-term Management Plan Policy 8th Medium-term 9th Medium-term 10th Medium-term Management Plan Management Plan Management Plan 2018 2019 2020 2022 2023 2025 Improve Improve overall equipment efficiency (OEE) productivity Improve delivery Restructure SCM …… Receive orders ➡ Visu
Slide 14: 10th Medium-term Management Plan Policy: R&D strategy
Translation 10th Medium-term Management Plan Policy R&D strategy: Shift to higher value added (highly profitable products) through a combination of market-in and product-out. ◆ Concentrate on strengthening product planning capabilities and key projects (1) Shift to higher value added and more highly
Slide 15: CAT Project Activities: Three Pillars of Activity
Translation 10th Medium-term Management Plan Policy CAT Project Activities Connecting Application & Technology development Project Work closely with customers and delve deeply into their problems, identity latent demand, and connect it to development of capacitor technology. ―Three Pillars of Activi
Slide 16: Financial Strategy
Translation Financial Strategy NIPPON CHEMI‐CON CORPORATION November 2023 15
Slide 17: Purpose of Capital Financing
Translation Purpose of Capital Financing • The purpose of the current financing is to (1) strengthen the Company’s financial base and (2) secure the funds to pursue the growth strategy outlined in the 10th Medium-term Management Plan. Implement capital financing Achieve both financial soundness and
Slide 18: Type of Financing for Class A and Class B Shares and Specific Purposes of Use
Translation Type of Financing for Class A and Class B Shares and Specific Purposes of Use for Issue Amounts • The plan is to procure 15 billion yen in financing though the Japan Industrial Solutions III Investment Limited Partnership, via a third-party allocation of new classified shares. • Our plan
Slide 19: Overview of Class A and Class B Shares
Translation Overview of Class A and Class B Shares Class A Shares Class B Shares Planned allocatee Japan Industrial Solutions III Investment Limited Partnership (hereafter, “JIS”) Issue amount (amount financed) 10.0 billion yen 5.0 billion yen Voting rights None Date of extraordinary General Meeting
Slide 20: Supplementary Material
Translation Supplementary Material NIPPON CHEMI‐CON CORPORATION November 2023 19
Slide 21: 1H FY2023 Net Sales by Product -YoY-
Translation 1H FY2023 Net Sales by Product ーYoYー Aluminum electrolytic, conductive polymer and DLCAPTM outperformed YoY due to the positive effects from the increase in vehicle production volume and increase in the number of parts. (Million yen) FY2022 FY2023 YoY 1H 2H 1H YoY change % Aluminum elect
Slide 22: 2H FY2023 Forecast of Net Sales by Product
Translation 2H FY2023 Forecast of Net Sales by Product The automotive electronics market will remain strong, supported by pent-up demand. The industrial equipment and ICT markets are seeing a delay in the timing of recovery, beyond the initial forecast. (Million yen) FY2023 FY2022 2H Full-year Compo
Slide 23: Net Sales by Market - FY2022 Results, FY2023 Forecast
Translation Net Sales by Market －FY2022 Results, FY2023 Forecastー Automotive electronics, up five percentage points: Increase in the number of parts accompanying robust pent-up demand and progress on electrification Industrial equipment, down four percentage points: Continuing decline in corporate c
Slide 24: Three Main Market Trends - 2H FY2023 Forecast
Translation Three Main Market Trends －2H FY2023 Forecastー (Billion yen) Net Sales 27.0 Automotive electronics Continued firmness due to progress on electrification and pent-up demand 22.0 ICT 17.0 PC and server inventory adjustments coming to an end Industrial equipment Continuing cautious stance on
Slide 25: Disclaimer
Translation Disclaimer This material has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The projected performance figures in this material are based on inf