Nippon Chemi-Con Corporation · TSE:6997
Nippon Chemi-Con — Q3 FY2020 Earnings Presentation
13 slides from Nippon Chemi-Con's earnings presentation, February 2021
Slide 1: Results for 3Q FY 2020
Translation Results for 3Q FY 2020 (3Q and Nine months ended December 31, 2020) Nippon Chemi‐Con Corporation February 2021 1
Slide 2: Nine-month results: shift to a profitability structure
Translation Shift to a profitability structure as a result of further effect from structural reforms and improvement in the percentage of highly profitable products FY2019 FY2020 YoY Change (Billion yen) 3Q (Apr – Dec) 3Q (Apr – Dec) Amount ％ Net sales 85.62 79.85 (5.77) (6.7) Gross profit 13.22 14.
Slide 3: Nine-month net sales by product
Translation Increase in sales of conductive polymer/hybrid capacitors for automotive electronics/ICT markets and capacitor materials FY2019 FY2020 YoY Change (Billion yen) 3Q (Apr – Dec) 3Q (Apr – Dec) Amount ％ Aluminum electrolytic capacitors 72.55 68.61 (3.94) (5.4) (Conductive polymer capacitors)
Slide 4: Third quarter results: profitability improved through product mix
Translation Amid escalating freight and transportation expenses, profitability was improved by increasing gross profit through improving product mix and productivity FY2019 FY2020 YoY Change QoQ Change (Billion yen) 3Q 2Q 3Q Amount % Amount % Net sales 28.05 28.40 27.67 (0.38) (1.3) (0.73) (2.5) Gro
Slide 5: Third quarter net sales by product
Translation Improvement of product mix due to recovery of demand for conductive polymer capacitors, hybrid capacitors and DLCAPs for the automotive electronics market FY2019 FY2020 YoY Change QoQ Change (Billion yen) 3Q 2Q 3Q Amount ％ Amount ％ Aluminum electrolytic 23.94 24.64 23.84 (0.10) (0.4) (0.
Slide 6: Net sales by market, 2Q vs 3Q FY2020
Translation Net sales (billion yen) ↑ Automotive electronics: Global improvement in the number 30 28.4 27.6 of automobiles produced ↑ Industrial equipment: Continued recovery of products for Other FA, semiconductors, robots, automobiles, etc. (21)％ ↓ ICT: PC/communication base stations related marke
Slide 7: QoQ main positives and negatives for operating income
Translation Main positives: 1) Higher capacity utilization 2) Lower material/electricity costs 3) Reduction of manufacturing fixed costs Main negatives: 1) Increase in SG&A expenses such as logistics costs 2) Foreign exchange losses caused by yen's rise 3) Selling price factors Operating income Oper
Slide 8: Structural reforms progress and effect
Translation The progress of reduction of fixed costs, improvement of productivity and capacity utilization led to a larger structural reforms effect than planned Performance improvement effect total in nine months: 1.68 billion yen/ 84% of full FY 2020 plan of 2.0 billion yen 1Q 2Q 3Q Main Measures
Slide 9: Full-year forecast for FY2020
Translation Aiming to achieve the operating income goal by improving profitability through expanding sales of new products and improving capacity utilization FY2019 FY2020 YoY Change 4Q QoQ QoQ 2H Full year (Billion yen) Full year 1H 3Q Amount % (forecast) Amount ％ (forecast) (forecast) Net sales 11
Slide 10: 4Q operating income forecast factors
Translation Main positives: 1) Improvement in product mix by expanding sales of new products = increase in gross profit 2) Profits from higher capacity utilization 3) Cost reductions Main negatives: 1) Increase in SG&A expenses such as logistics costs 2) Increase in manufacturing fixed costs 3) Sell
Slide 11: Net sales forecast by market
Translation Amid the COVID‐19 pandemic, the three strategic markets (automotive electronics, ICT, industrial equipment) will enter a new growth phase Net sales Automotive electronics: Global improvement close to (billion yen) predictions in the number of automobiles produced 120 114.5 113.5 Industri
Slide 12: Management priorities and infection prevention measures
Translation １．Improvement of earning power Lowering of the break-even point by reducing fixed costs/improvement of capital efficiency through selection and concentration of capital investment ２．Improvement of financial strength Improvement of cash flows from operating activities/reduction of invento
Slide 13: Note on forward-looking statements
Translation 〔Note〕 The projected performance figures in this material are based on information available to Nippon Chemi‐ Con’s management at the time this material was prepared. There are many uncertain factors inherent in forecasting, and there might be cases in which actual results differ from fo