Summary of Financial Results:

First Half of FY2023

October 31, 2023

All Rights Reserved. Copyright © 2021. Nifco Inc.

1. Financial Highlights

Achieved High Level of Sales and Margins In a Difficult Business Environment

  • Sales remained high due to yen depreciation and strong domestic business
  • Despite the inflation, fixed costs are controlled and profitability is maintained

(Billions of yen)

Net sales :

20.0%

90.0

90.9

Operating margin :

80.0

15.0%

70.0

11.6%

60.0

10.0%

50.0

5.0%

40.0

30.0

0.0%

20.0

-5.0%

10.0

0.0

Q3

Q3

3Q

11/1Q

3Q

12/1Q

3Q

13/1Q

3Q

14/1Q

3Q

15/1Q

3Q

16/1Q

3Q

17/1Q

3Q

18/1Q

3Q

19/1Q

3Q

20/1Q

3Q

21/1Q

3Q

22/1Q

3Q

23/1Q

-10.0%

08/Q1

09/Q1

10/Q1

23/2Q

All Rights Reserved. Copyright © 2021. Nifco Inc.

2

2. Overview of Y2023 Q2 Consolidated

Achieved YoY and QoQ Increases in Both Revenue And Income

  • Achieved year-on-year and quarter-on-quarter increases in both revenue and income
  • Sale (YoY +20.0%, QoQ +3.4%), OP (YoY+44.5%, QoQ +3.9%)

(JPN)

Net Sales

Operating profit

OP margin

Net income 1)

EPS

FX rates

FY2022

FY2023

Q2

Q1

Q2

YoY

75.7bn

87.9bn

90.9bn

+20.0%

7.3bn

10.1bn

10.5bn

+44.5%

9.6%

11.5%

11.6%

+2.0%pts

5.8bn

9.7bn

7.6bn

+31.0%

57.90yen

97.50yen

76.22yen

+31.6%

1USD=JPY123.1

1USD=JPY132.4

1USD=JPY135.0

1USD=JPY+11.9

1EUR=JPY134.4

1EUR=JPY142.1

1EUR=JPY145.9

1EUR=JPY+11.5

1) Net income is net income attributable to parent company

All Rights Reserved. Copyright © 2021. Nifco Inc.

3

3. Overview of FY2023 H1 Consolidated

Sales And OP increased YoY. OPM Remained Solid at 11.6%

  • Both sales and OP increased YoY mainly due to yen depreciation and strong performance in Japan
  • OPM remained steady at 11.6%

FY2021

FY2022

FY2023

(JPN)

Net Sales

Operating profit

OP margin

Net income 1)

EPS

FX rates

1H

1H

1H

YoY

139.7bn

148.4bn

178.8bn

+20.5%

16.1bn

15.2bn

20.7bn

+35.9%

11.5%

10.3%

11.6%

+1.3%pts

11.9bn

13.8bn

17.3bn

+25.3%

117.19yen

138.10yen

173.71yen

+25.8%

1USD=JPY107.8

1USD=JPY123.1

1USD=JPY135.0

1USD=JPY+11.9

1EUR=JPY129.9

1EUR=JPY134.4

1EUR=JPY145.9

1EUR=JPY+11.5

1) Net income is net income attributable to parent company

All Rights Reserved. Copyright © 2021. Nifco Inc.

4

4. FY2023 Full Year Guidance

No Revision in Full-Year Guidance

  • Exchange rate assumptions remain unchanged
  • Full-yearforecasts also remain unchanged (1USD=132yen, 1EUR=145yen)

(JPN)

Net Sales

Operating

profit

OP Margin

Recurring

Profit

Net Income1)

EPS2)

FY2022

FY2023

1H

1H

Full-Year Forecasts

Achievement rate

148.4bn

178.8bn

343.0bn

52.1%

15.2bn

20.7bn

38.0bn

54.4%

10.2%

11.6%

11.1%

ｰ

20.3bn

25.0bn

38.3bn

65.3%

13.8bn

17.3bn

23.5bn

73.7%

138.10yen

173.71yen

235.59yen

73.7%

1) Net income is net income attributable to parent company, 2) Net Income per a share

All Rights Reserved. Copyright © 2021. Nifco Inc.

5

5. FY2023 H1 Consolidated OP (YoY)1

Operating Profit Analysis (YoY)

  • OP increase driven by revenue increase due to recovery in production volume following Q1
  • Both variable and fixed costs increased due to inflation, but were controlled to a certain level. As a result, OP increased by approx. 30% yoy even without the FX effect

-2.2bn

+10.7bn

-3.9bn

+0.9bn

20.7bn

15.2bn

Operating profit

Sales

Marginal profit

Fixed cost

FX rate

Operating profit

(FY2022 1H)

factors

factors

factors

factors

(FY2023 1H)

1) Overseas: January - June, Japan: April - September

All Rights Reserved. Copyright © 2021. Nifco Inc.

6

6. FY2023 H1 by Segment (Sales)

Achieved Revenue Growth in All Regions Except China1

  • Japan and the U.S., where recovery in production volume by JPN OEMs is remarkable, led the increase in sales
  • Sluggish sales in China due to lower production volume caused by struggle of JPN OEMs

(JPN)

Consolidated

Plastics

Japan

North

America

Europe

Asia

China

Bed

Japan

Asia

FY2022(1H)

148.4bn

133.3bn

35.7bn

32.7bn

18.4bn

46.4bn

14.9bn

15.1bn

8.3bn

6.8bn

FY2023(1H)

178.8bn

161.8bn

42.6bn

42.6bn

23.6bn

53.0bn

13.8bn

17.0bn

9.0bn

8.0bn

YoY

+20.5%

+21.4%

+19.4%

+30.4%

+27.9%

+14.1%

-7.3%

+12.7%

+8.3%

+18.2%

Note

Automobile production recovery

Automobile production recovery of Japanese OEMs

Automobile production recovery

Strong production of Korean OEMs

Decreased automobile production of Japanese OEMs

The previous year was affected by Covid

1) Overseas: January - June, Japan: April - September

All Rights Reserved. Copyright © 2021. Nifco Inc.

7

7. FY2023 H1 by Segment (OP)

OP Increased in All Regions And Segments Except China1

  • Margin improvement in North America and Japan, drove the rise in OPM
  • China continues to face a difficult business environment due to the impact of declining sales

(JPN)

Consolidated

Plastics

Japan

North

America

Europe

Asia

China

Bed

Japan

Asia

FY2022(1H)

15.2bn

(10.3%)

15.1bn

(11.4%)

5.3bn

(14.8%)

0.9bn

(2.8%)

0.6bn

(3.4%)

8.3bn

(17.9%)

2.5bn

(16.6%)

2.5bn

(16.4%)

1.1bn

(13.6%)

1.3bn

(19.7%)

FY2023(1H)

20.7bn

(11.6%)

20.3bn

(12.5%)

8.0bn

(18.9%)

1.8bn

(4.3%)

1.6bn

(6.6%)

8.9bn

(16.7%)

1.9bn

(13.6%)

2.8bn

(16.5%)

1.3bn

(14.6%)

1.5bn

(18.6%)

YoY

+35.9%

+33.8%

+51.9%

+95.3%

+145.9%

+7.5%

-23.6%

+13.8%

+16.5%

+10.6%

Note

Improvement due to increased sales and fixed cost management

Improvement due to increased sales and fixed cost management Improved utilization ratio due to increased production volume

Remain strong performance

Decreased sales and associated increase in fixed cost burden

1. Overseas: January - June 2023, Japan: April - September 2023

All Rights Reserved. Copyright © 2021. Nifco Inc.

8

8. Customer Base (average installed value per vehicle and customer mix)

Installed Value Per Vehicle Increased And Customer Diversification Progressed

  • Nifco has a wide range of customers including Japanese, Korean and European OEMs, and the average installed value per vehicle keeps increasing in FY2023 H1
  • MP margin is in the upper 40% range, but recently decreased due to material cost increase

(yen/units)

8,800

9%

11%

20%

11%

Other non-Japanese OEMs

German OEM

Average installed value per vehicle (Japan)

4,608

4,058

3,509

3,000

6,917

5,739

5,175 5,000

Customer

18%

25%

12%

10%

mix

(global)

14%

11%

7%

27%

25%

Hyundai

Other Japanese OEM

Honda

Nissan

Toyota

FY1997FY2000FY2003FY2006FY2009FY2012FY2015FY2018FY20

FY20222H1

FY2011

FY2023 1H

48.8%

47.8%

47.9%

46.9%

46.9%

47.5%

49.1%

49.8%

50.6%

49.1%

49.1%

47.6%

47.2%

45.9%

48.9%

49.5%

47.0%

48.1%

48.2%

47.8%

47.7%

49.2%

49.6%

49.5%

49.2%

48.7%

47.2%

46.7%

Marginal

profit

ratio

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

All Rights Reserved. Copyright © 2021. Nifco Inc.

9

9. CAPEX and Depreciation

Free Cashflow Will Steadily Increase

  • Operating cashflow progressed as planned
  • Progress of CAPEX is 29% of the plan. Will execute appropriately based on demand

(JPN)

FY2022(1H)

FY2023(1H)

Change

Plan (FY2023)

CAPEX

4.0bn

3.8bn

-0.2bn

13.3bn

Depreciation

6.6bn

6.9bn

+0.3bn

13.8bn

R&D

1.8bm

1.8bn

-

3.6bn

Operating CF

15.6bn

20.6bn

+5.0bn

36.0bn

Investment CF

-7.4bn

-2.0bn

+5.4bn

-13.3bn

Free CF

8.2bn

18.6bn

+10.4bn

22.7bn

Financial CF

-5.0bn

-18.8bn

-13.8bn

-19.5bn

Cash equivalent

120.5bn

129.3bn

+8.8bn

124.2bn

balance

All Rights Reserved. Copyright © 2021. Nifco Inc.

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Nifco Inc. published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 04:34:11 UTC.