Nippon Chemi-Con Corporation · TSE:6997
Nippon Chemi-Con — FY2023 Earnings Presentation
21 slides from Nippon Chemi-Con's earnings presentation, May 2024
Slide 1: Financial Results Explanatory Material for FY2023
Financial Results Explanatory Material for FY2023 (FY ended March 31, 2024) TSE Prime Market, Securities code:6997 NIPPON CHEMI‐CON CORPORATION May 2024 1
Slide 2: Quarterly Performance Trend
Quarterly Performance Trend Net Sales Operating margin (Million yen) Trend in Net Sales and Operating Margin (%) 50,000 9th Medium-term Management Plan 10th Medium-term 11% 45,000 42,858 41,982 41,137 Impact from COVID-19 pandemic 38,439 38,602 9.7% 39,203 40,000 37,825 9.4% 9% 35,989 35,680 34,718
Slide 3: FY2023: Overview of Consolidated Results
FY2023: Overview of Consolidated Results The automotive electronics market rebounded and remained firm while the slump in the industrial equipment and ICT markets persisted, leading to a decline in both net sales and profit. (Million yen) FY2022 FY2023 Change % Net Sales 161,881 150,740 -11,141 -6.9
Slide 4: FY2023: Net Sales by Market and by Region
FY2023: Net Sales by Market and by Region □ Percentage of Net Sales by Market Strong Market Automotive Industrial New Home ICT Automotive electronics Other FY2022 electronics equipment energy appliances Normalization of semiconductor 28% 25% 6% 10% 24% 7% supply and growth in the number of parts per
Slide 5: FY2023: Analysis of Factors Behind YoY Change in Operating Income
FY2023: Analysis of Factors Behind YoY Change in Operating Income Lower sales from the slump in the industrial equipment and ICT markets (Billion yen) and deterioration in operating rates led to a decline in operating income. NIPPON CHEMI‐CON CORPORATION May 2024 5
Slide 6: FY2023: Measures to Boost Capital
FY2023: Measures to Boost Capital Capital financing • Issued new common shares and classified shares via third-party allocation and procured a total of 17.4 billion yen in financing (2.4 billion yen from common shares and 15.0 billion yen from classified shares). Purpose of Capital Financing ・ The p
Slide 7: FY2024: Consolidated Full-Year Forecast
FY2024: Consolidated Full-Year Forecast In FY2024, we expect inventory adjustments in the industrial equipment and ICT markets to come to an end in the 1H and forecast a rebound in demand in the 2H. FY2023 FY2024 (Million yen) Full-year 1H 2H Full-year Change % Change results plan plan plan YoY YoY
Slide 8: Current Business Environment and FY2024 Forecast
Current Business Environment and FY2024 Forecast (Envisioned market rebound) [Net Sales Forecast by Market] 160 Automotive electronics 110 ICT Market Forecasts Industrial equipment 60 Q3 Q4 Q1 Q2 Q3 Q4 FY23-Q3 FY2023 Q4 FY2023 FY24-Q1予想 FY2024 Q2予想 FY2024 Q3予想 FY2024 Q4予想 FY2024 Automotive Semicondu
Slide 9: FY2024 Market Overview for the Three Main Markets
FY2024 Market Overview for the Three Main Markets: Forecasting Continuing Strength in Automotive Electronics and a Rebound in Industrial Equipment and ICT [INDEX: FY2022 = 100] 150 Automotive ・ The number of vehicles is forecast to electronics increase by 3% in 2024 to 89 million. 100 ・ Progress on
Slide 10: FY2024: Analysis of Factors Behind Forecast YoY Change in Operating Income
FY2024: Analysis of Factors Behind Forecast YoY Change in Operating Income We forecast an increase in operating income from an increase in sales due to the rebound in the industrial equipment and ICT markets, cost reductions, and reduction in SG&A expenses. (Billion yen) NIPPON CHEMI‐CON CORPORATION
Slide 11: Growth Strategies: Specific Uses of Proceeds from Financing
10th Medium-term Management Plan Growth Strategies: Specific Uses of Proceeds from Financing • Proceeds from financing will mainly be used for key measures in the 10th Medium-term Management Plan; namely, capital investment in the hybrid capacitor business, capital investment in conversion of a plan
Slide 12: Growth Strategies: Increase Hybrid Capacitor Production Capacity
10th Medium-term Management Plan Growth Strategies: Increase Hybrid Capacitor Production Capacity Monthly production New manufacturing building Miyagi Plant As of April 2024 100 million pieces Miyagi Plant Production Capacity Monthly Schedule for new manufacturing production building: 50 million Com
Slide 13: Improving Overall Equipment Effectiveness (OEE)
10th Medium-term Management Plan: Improving Overall Equipment Effectiveness (OEE) to Increase Production Capacity without Increasing Personnel and Equipment Overall equipment Monthly production: effectiveness (OEE) Million pieces 100% 150 Effects by improved OEE Increase in OEE 30% 25% Investment in
Slide 14: Growth Strategies: SCM Restructuring (Smart Factory Initiatives)
10th Medium-term Management Plan Growth Strategies: SCM Restructuring (Smart Factory Initiatives) Up to FY2023 FY2024 onward (10th Medium-term Management Plan) Build streamlined SCM operation (scheduler/MES) based on Operations requiring human highly implementable plans that do not rely on human int
Slide 15: Growth Strategies: Automate External Appearance Sorting
10th Medium-term Management Plan Growth Strategies: Automate External Appearance Sorting (Smart Factory Initiative) Automate external product appearance sorting ⇒ Use omni-directional external appearance sorter to switch from human judgment to quantitative judgment of all items Up to FY2023 FY2024 o
Slide 16: ESG Initiatives in Strengthening Governance
ESG Initiatives in Strengthening Governance [Dedicated effort to prevent recurrence of problems relating to competition law] Ten years have elapsed since the problems relating to competition laws occurred. Current (The number of employees who know the details behind the problems has also status decr
Slide 17: Appendix
Appendix NIPPON CHEMI‐CON CORPORATION May 2024 17
Slide 18: FY2023: Net Sales by Product
FY2023: Net Sales by Product Inventory adjustments that began during the COVID-19 pandemic have been prolonged and production has slumped mainly in the industrial equipment and ICT markets. Change % Change (Million yen) FY2022 FY2023 YoY YoY Aluminum electrolytic 140,897 132,497 -8,399 -6.0% Conduct
Slide 19: FY2024: Forecast of Net Sales by Product
FY2024: Forecast of Net Sales by Product We expect net sales to outperform the previous fiscal year due to an increase in production capacity for hybrid capacitors and a rebound in the industrial equipment and ICT markets from the 2H onward. FY2024 % (Million yen) FY2023 1H 2H Full-year Composition
Slide 20: 10th Medium-term Management Plan: Revised Financial Goals
10th Medium-term Management Plan: Revised Financial Goals Revised financial goals for the 10th Medium-term Management Plan (revised from the figures announced in May 2023) 9th Medium-term 10th Medium-term 10th Medium-term Management Plan Management Plan Management Plan Final fiscal year results Fina
Slide 21: Disclaimer
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 information ava