Espec Corp. · TSE:6859
Espec — H1 FY2023 Earnings Presentation
28 slides from Espec's earnings presentation, Nov 22, 2023
Slide 1: Results Briefing for the Six Months Ended September 30, 2023
Securities ID code: 6859 ESPEC CORP. Results Briefing for the Six Months Ended September 30, 2023 November 22, 2023 Satoshi Arata Representative Director and President
Slide 2: Financial Result for the Six Months Ended September 30, 2023
Financial Result for the Six Months Ended September 30, 2023 Orders received were driven particularly by orders related to EVs and batteries. Sales and profits increased significantly, reaching record highs, due to securing parts and strengthening production response. 2Q and full-year forecasts were
Slide 3: Summary of Profits and Losses
Summary of Profits and Losses (Millions of yen) FY 2022 2Q FY 2023 2Q FY 2023 2Q Comparison with Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 33,266 26,500 33,440 +0.5% +26.2% Net Sales 22,945 26,000 27,257 +18.8% +4.8% Cost of Net Sales +17.3% +3.0% 15,150 17,250
Slide 4: Performance by Segment
Performance by Segment (Millions of yen) FY 2022 2Q FY 2023 2Q FY 2023 2Q Comparison with Segment Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 29,209 22,550 29,198 -0.0% +29.5% Equipment Business Net Sales 19,650 22,450 23,533 +19.8% +4.8% Operating Profit 1,403 1
Slide 5: Orders Received in FY2023 2Q
Orders Received in FY2023 2Q ■ Although orders received were forecast to decrease year on year, orders were driven by domestic investment in EVs and batteries (environmental test chambers, energy device equipment, laboratory testing services). Orders received in FY2023 1H reached record highs for th
Slide 6: Net Sales in FY2023 2Q
Net Sales in FY2023 2Q ■ Although extended delivery times continued for parts, progress was made on clearing the order backlog as of the end of March 2023 and improving product lead times due to securing parts and strengthening production response. 1H net sales reached a record high for the second c
Slide 7: Analysis of Operating Profit Increase and Decrease Factors
Analysis of Operating Profit Increase and Decrease Factors ■ Despite an increase in selling, general and administrative expenses, profit increased by approximately ¥0.9 billion due mainly to a boost from increased sales in the Equipment Business. 86 -19 (Millions of yen) Equipment Business -264 Serv
Slide 8: Statement of Assets and Liabilities
Statement of Assets and Liabilities ■ Assets increased by approximately ¥6.8 billion, due mainly to an increase in cash and deposits reflecting short-term borrowings and increases in noncurrent and intangible assets. trade, and contract assets Notes and accounts receivable - (Millions of yen) Assets
Slide 9: Statements of Cash Flows
(Millions of yen) 8 3,251 Increase (decrease) in funds ■ Cash increased by approximately ¥3.2 billion, mainly due to short-term borrowings. 521 Effect of exchange rate changes 2,330 Total financial cash flow -180 Other -989 Dividends paid 3,500 Increase in Short-term borrowings -960 Total investment
Slide 10: Equipment Business
Equipment Business (Millions of yen) FY 2022 2Q FY 2023 2Q FY 2023 2Q Comparison with Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 29,209 22,550 29,198 -0.0% +29.5% Net Sales 19,650 22,450 23,533 +19.8% +4.8% Operating Profit 1,403 1,870 2,175 +55.0% +16.3% Profit
Slide 11: Service Business
Service Business (Millions of yen) FY 2022 2Q FY 2023 2Q FY 2023 2Q Comparison with Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 3,470 3,350 3,785 +9.1% +13.0% Net Sales 3,020 3,150 3,445 +14.1% +9.4% Operating Profit 72 30 249 +244.7% +730.4% Profit Ratio(%) 2.4%
Slide 12: Other Business
Other Business (Millions of yen) FY 2022 2Q FY 2023 2Q FY 2023 2Q Comparison with Year on Year Results Initial Forecasts Results Initial Forecasts Orders Received 747 750 655 -12.3% -12.5% Net Sales 405 550 475 +17.5% -13.5% Operating Profit -80 -50 -88 - - Profit Ratio(%) -19.8% -9.1% -18.6% Enviro
Slide 13: Sales by Market
Sales by Market ■ Net Sales increased 1.2x in the electronic device and equipment market, 1.6x in the automobile market due to a significant increase centered on EVs and batteries and decreased in the semiconductor market. Electronic device and equipment market Non-Consolidated (Equipment Business)
Slide 14: Sales by Region
Sales by Region ■ Net sales increased primarily in Japan, North America, and Europe. Net sales in China were mostly unchanged year on year. FY 2022 2Q FY 2023 2Q Overseas sales ratio: 57.8% Overseas sales ratio: 58.9% ■ North America & Europe 17.5% 24.1% ■China 42.2% ■Taiwan 41.1% 26.1% ■South Korea
Slide 15: Forecasts for Fiscal 2023
Forecasts for Fiscal 2023 ■ Main points of full-year forecasts ・Although the momentum of orders received in 1H is expected to calm down, orders received should remain at a high level. ・Production of customized products is expected to be concentrated in the second half. ・Aim for record-high net sales
Slide 16: Forecasts for Fiscal 2023
Forecasts for Fiscal 2023 (Millions of yen) FY 2022 FY 2023 FY 2023 Full Year Full Year Forecasts (Revised on Oct 27) 1H Results Results Initial Forecasts 2H Full year Year on Year Orders-received 59,521 54,000 33,440 27,559 61,000 +2.5% Net sales 52,892 56,000 27,257 31,243 58,500 +10.6% Gross prof
Slide 17: Investment Plans in FY2023
Investment Plans in FY2023 (Millions of yen) FY 2022 FY 2023 FY 2023 Forecasts (no change from the initial forecasts) Full Year Full Year 1H Results Results Initial Forecasts 2H Full year Year on Year Capital expenditures 1,311 3,100 1,300 1,800 3,100 +136.5% Depreciation expenses 1,328 1,480 715 76
Slide 18: Recognition of the Operating Environment
Recognition of the Operating Environment ■ Orders will see the momentum of 1H settle down, but demand for EVs, batteries and other advanced technology fields will continue, particularly in Japan. Japan: Investments in EVs and batteries will remain favorable, while investment related to IoT will hold
Slide 19: Segment Financial Forecasts
Segment Financial Forecasts (Millions of yen) FY 2022 FY 2023 FY 2023 Full Year Full Year Forecasts (Revised on Oct. 27) Initial Forecasts 1H Results Results 2H Full Year Year on Year Orders-Received 51,446 45,500 29,198 23,561 52,760 +2.6% Equipment Business Net sales 45,031 47,700 23,533 26,817 50
Slide 20: FY 2023 Dividend Forecast
FY 2023 Dividend Forecast ■ No revision to the dividend forecast for FY2023, with the dividend payout ratio projected at 38.2%. Dividend per share and dividend payout ratio (forecast) (yen) *2 *3 68 68 69 70 70 *1 中間 Interim 期末 Year-end 60 60 58 51 50 45 46 46 45 40 32 36 38 42 30 26 41 18 20 24 20
Slide 21: Basic policy on profit distribution
Basic policy on profit distribution Our basic policy is to determine dividends reflecting sustainability and the dividend payout ratio In addition to a dividend payout ratio of 30%, we will add dividends with 1/3 of the excess amount of scheduled necessary funds as a baseline. While reflecting a nec
Slide 22: Main Initiatives in FY2023
Main Initiatives in FY2023 Equipment Business ・Boost earnings power, normalize delivery schedules, and rapidly clear the order backlog ・Strengthen response to the globally expanding battery market Service Business After-sales Service: Expand preventative maintenance services through “super support s
Slide 23: Main Initiatives for ESG in FY2023
Main Initiatives for ESG in FY2023 ■E (Environment) ・Promote the 8th Medium-term Plan on the Environment (FY2022-2025) ・Global warming countermeasure: Change to low-GWP refrigerant, Reduce CO2 emissions in business activities such as manufacturing ・Biodiversity conservation activities: Contributions
Slide 24: TOPICS
TOPICS 1 Battery Safety Testing Center Expanding Lineup of Semiconductor Inspection Upgraded and expanded Equipment Burn-In Chamber Support for High laboratory testing equipment Heat Generation Load ・In October 2023, upgraded and expanded charge- ・In March 2023, expanded the Burn-In Chamber which di
Slide 25: TOPICS
TOPICS 2 ESPEC MIC CORP. Started Joint Research at Kawasui Kawasaki Aquarium Using Aquaponics In June 2023, ESPEC MIC CORP. started joint research with Kawasui Kawasaki Aquarium and the Laboratory of Tropical Crop Science, College of Bioresource Sciences, Nihon University on a demonstration experime
Slide 26: External Recognition
External Recognition ■2023 Nov. ・Rated 3.5 stars in the Nikkei’s 5th SDGs Management Survey ・Rated 3 stars in Nikkei’s 7th Smart Work Management Survey Oct. ・Ranked 157th in the Nikkan Kogyo Shimbun’s 19th Corporate Power Ranking (sponsored by the Ministry of Economy, Trade and Industry) Aug. ・ Firs
Slide 27: Forward-looking statements and inquiries
These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f
Slide 28: Quality is more than a word
Quality is more than a word ESOEC ESPEC CORP.