Nippon Chemi-Con Corporation · TSE:6997
Nippon Chemi-Con — Q2 2024 Earnings Presentation
20 slides from Nippon Chemi-Con's earnings presentation, November 2024
Slide 1: Financial Results Explanatory Material for 2Q FY2024
Financial Results Explanatory Material for 2Q FY2024 (Six months ended September 30, 2024) TSE Prime Market, Securities code: 6997 NIPPON CHEMI‐CON CORPORATION November 2024 0
Slide 2: Trends in Quarterly Earnings
Trends in Quarterly Earnings Net Sales Operating Margin (％) Unit: Million yen Trends in Net Sales and Operating Margin 50,000 15% 9th Medium-term Management Plan 10th Medium-term Management Plan 45,000 42,858 13% 41,982 41,137 38,439 38,602 39,203 40,000 37,825 11% 35,989 35,680 34,718 35,000 33,383
Slide 3: 2Q FY2024 Consolidated Earnings Summary
2Q FY2024 Consolidated Earnings Summary Revenues declined amid sluggish demand on markets other than the ICT market. Profit decreased on decline in gross margin and utilization Rate of Change Unit: Million yen 1H/FY2023 Results 1H/FY2024 Results Change (%) Net Sales 80,341 59,914 -20,426 -25.4% Oper
Slide 4: 2Q FY2024 Consolidated Earnings Highlights
2Q FY2024 Consolidated Earnings Highlights 1H Main Points Net Sales - Net sales ICT market orders received were favorable thanks mainly to ¥59.9 bn servers as performance exceeded initial forecasts. However, YoY -25.4％ the recovery of the industrial equipment market was delayed by economic downturn
Slide 5: 2Q FY2024 Net Sales by Market and by Region
2Q FY2024 Net Sales by Market and by Region ■ Percentage of Net Sales by Market New Home 1H FY2023 Automotive electronics Industrial Equipment ICT Other Energy appliances Results 32% 22% 7% 9% 23% 7% 1H FY2024 37% 19% 4% 7% 26% 7% Results 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ■ Percentage of N
Slide 6: 2Q FY2024: Operating Income YoY
2Q FY2024: Operating Income YoY Income decreased on lower sales due to sluggish recovery in demand on industrial equipment market and other markets Unit: Billion yen 14.0 12.0 0.6 0.5 1.0 10.0 1.1 1.6 8.0 1.7 6.0 5.1 4.0 -1.9 2.0 -8.5 -1.2 0.0 NIPPON CHEMI‐CON CORPORATION November 2024 5
Slide 7: FY2024 Full-Year Consolidated Earnings Forecast
FY2024 Full-Year Consolidated Earnings Forecast Forecasting decreased net sales and income on inability to achieve sales targets due to sluggish recovery on industrial equipment market and stagnant automotive electronics market FY2023 FY2024 YoY FY2023 FY2023 FY2024 FY2024 Unit: Million yen Full-yea
Slide 8: 2H FY2024 Consolidated Earnings Forecast: Main Points
2H FY2024 Consolidated Earnings Forecast: Main Points 2H Main Points Net Sales - Net sales - The automotive electronics market saw transitional inventory adjustments but hybrid capacitor demand was firm and we will ¥73.0 bn continue with full-scale production during 2H vs. 1H +22.0％ - The industrial
Slide 9: Outlook for Current Operating Environment and Three Major Markets
Outlook for Current Operating Environment and Three Major Markets 1H FY2024 2H FY2024 1H FY2025 Market Outlook ✓ While there is concern about a slowdown in the EV shift in the West, Automotive electronics the adoption of automotive electronics such as advanced driver assistance systems (ADAS) is adv
Slide 10: 2H FY2024 Forecast Operating Income (vs. 1H)
2H FY2024 Forecast Operating Income (vs. 1H) Projecting increased sales and income on increased server demand in the ICT market and recovery in the industrial equipment market Unit: Billion yen 10.0 0.6 9.0 6.7 8.0 7.0 -1.1 -0.9 6.0 -0.7 5.4 5.0 -0.7 -0.1 -0.3 4.0 3.0 1.9 2.0 1.0 0.0 NIPPON CHEMI‐CO
Slide 11: Growth Strategy: Establish structure for increasing production of hybrid capacitors
10th Medium-term Management Plan Growth Strategy: Establish structure for increasing production of hybrid capacitors and develop new products Establish structure for increasing production of hybrid capacitors ■Chemi-Con East Japan Miyagi Plant ■Plan for increasing hybrid capacitor production -Constr
Slide 12: Growth Strategy: Use OEE improvements to increase volume
10th Medium-term Management Plan Growth Strategy: Use OEE improvements to increase volume without adding workers or upgrading facilities OEE overall equipment efficiency Volume increase effect: Million units OEE improvement rate: % 40% Trends in OEE improvement (vs. FY2019) / 120 improvement ratio a
Slide 13: Growth Strategy: Progress for smart factory initiatives
10th Medium-term Management Plan Growth Strategy: Progress for smart factory initiatives through FY2022 FY2023 results (Year 1 of Plan) 1H FY2024 results Highly feasible plan not dependent on human labor to build SCM Operations requiring operations (scheduler/MES) with no waste human labor/decisions
Slide 14: Strengthen sales in emerging nations and BCP response
10th Medium-term Management Plan: Strengthen sales in emerging nations and BCP response Next CHINA response Strengthen markets in India, BCP response Global business strategy of focusing ✓ Currently, some 35 to 40% of sales are in Greater China on emerging nations ✓ It is an important region for o
Slide 15: New Product Development and New Product Income Contributions
10th Medium-term Management Plan Growth Strategy: New Product Development and New Product Income Contributions Contributions by new products to 10th Medium-term Management Plan 10th Medium-term Management Plan: Trends in New Product Income Contributions New product profit contribution ✓ High-capacit
Slide 16: New Product Development: Increased income with new cathode foil
10th Medium-term Management Plan Growth Strategy: New Product Development and New Product Income Contributions Increased income with new cathode foil Income contributions from products ✓ Proprietary cathode material technology using new cathode foil ✓ Mass production started in May 2023 900 Cumulati
Slide 17: Appendix
Appendix NIPPON CHEMI‐CON CORPORATION November 2024 16
Slide 18: Q2 FY2024 Product-specific Sales (YoY)
Q2 FY2024 Product-specific Sales (YoY) Significant decrease in sales of products other than hybrid capacitors, conductive products for the ICT market, and capacitor materials YoY Rate of Unit: million yen 1H/FY2023 Results 2H/FY2023 results 1H/FY2024 Results YoY Change Change (%) Aluminum electrolyt
Slide 19: FY2024 Full-Year Product-specific Sales Forecast
FY2024 Full-Year Product-specific Sales Forecast Sales expected to increase due to recovery in the industrial equipment and automotive electronics markets, and further growth in the ICT market (server demand for data centers) FY2023 vs. 1H FY2024 FY2023 FY2023 FY2024 FY2024 Unit: Million yen Full-ye
Slide 20: 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