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 |
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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.