Nitto Boseki : Financial Results Presentation (Fiscal Year Ending 2024/Mar 2Q) （2,770KB）

Nittobo Group Financial Results for the First Half of FY2023

(From 2023/Apr. to Sept.)

November 2, 2023

Summary of Financial Results For the First Half of FY2023

（From 2023/Apr. to Sept.）

Copyright (C) NITTO BOSEKI CO., LTD. All Rights Reserved

（Billions of yen）

FY2023 1H Financial Highlights

• Sales and profit decreased on a year-to-year comparison basis in 1H; however, quarterly revenue grew in 2Q due to the sales recovery of Special Glass continuing from 1Q.
• Sales and profits were better than expected in the 1H forecast as of August 2023.
• Net profit drastically decreased due to the extraordinary income posted on sales of

non-current assets in the same period a year ago.

		FY2022			FY2023		Change
			1H			1H	(vsFY22)
	1Q	2Q	ACT	1Q	2Q	ACT	１H
Net sales	23.8	23.2	47.0	20.3	22.4	42.7	(4.3)
Operating profit	2.6	2.0	4.6	0.9	2.2	3.1	(1.5)
ROS％	11.0%	8.5%	9.8%	4.4%	10.0%	7.3%
EBITDA	4.6	4.1	8.7	2.6	4.0	6.6	(2.1)
EBITDA margin	19.5%	17.5%	18.5%	12.9%	17.9%	15.5%
Ordinary profit	3.6	2.6	6.2	1.9	2.3	4.2	(2.0)
Net profit	4.8	2.7	7.5	1.1	2.5	3.5	(4.0)
		Copyright (C) NITTO BOSEKI CO., LTD. All Rights Reserved

1H

FCST

(Aug.3)

42.0

2.5

6.0%

6.0

14.3%

3.0

2.0

3

Operating Profit Change Analysis(FY22 1H vs FY23 1H)

･In vitro diagnostic

reagent	↗
･Special Glass	↘
･Flat fiber	↘
･Ultrafine yarn

Ultra-thin cloth ↘

• R&D
• Labor cost

（Billions of yen）

・Commodity products

sales down↘ ・Cost down, Sales price ↗

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4

Overview by Segment in 1H FY2023

Glass Fiber Business

		• (Composite materials) Sales of composite materials for smartphone and automotive
		applications continued to be sluggish.
	Glass Fiber	• (Electronic materials) Sales of Special Glass remained on the recovery trend; however,
	Yarn	the sales of electronic materials as a whole were down from the same period a year
		ago due to weak sales of commodity products.
		Sales and profit decreased
		• Demand for Special Glass cloth for data center continued to be strong, and sales for
	Glass Fiber	semiconductor package demonstrated an upward trend but decreased over the same
	Cloth	period in the previous year.
		Sales and profit decreased
	Glass Fiber	• Sales of insulation and glass cloth for equipment and construction materials increased.
	for Industrial
	Materials	Sales and profit increased
Life Science Business
	Medical	• Sales of in vitro diagnostic reagents were generally favorable.
		Sales increased/profit decreased
	Beverage	• Not included in the consolidated settlement of accounts from 4Q, FY2022 onward due
	to business transfer.

• Sales of interlinings were steady owing to demand recovery due to an increase in

Textile	opportunities to go out.
	• Profit decreased due to cost increases.	Sales increased/profit decreased
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Financial Results by Segment (Net Sales)

（Billions of yen）

		FY2022			FY2023		Change
			1H			１H	(vsFY22)
	1Q	2Q	ACT	1Q	2Q	ACT	１H
Composite materials&	6.9	6.1	12.9	5.7	6.1	11.8	(1.1)
yarn (external sales)
Yarn for Glass fiber cloth	3.0	2.8	5.8	2.4	2.9	5.3	(0.5)
(intersegment sales)
Subtotal	9.9	8.8	18.8	8.2	9.0	17.1	(1.6)
Adjustment	(3.0)	(2.8)	(5.8)	(2.4)	(2.9)	(5.3)	0.5
Glass Fiber Yarn	6.9	6.1	12.9	5.7	6.1	11.8	(1.1)
Glass Fiber Cloth	7.0	6.5	13.5	5.4	6.5	12.0	(1.5)
Glass Fiber for	4.6	5.2	9.8	4.9	5.4	10.3	0.5
Industrial Materials
4.5	4.6	9.1	3.2	3.6	6.9	(2.2)
Life Science
Textile	0.6	0.6	1.2	0.6	0.6	1.2	0.1
Others & Adjustment	0.3	0.2	0.5	0.3	0.2	0.5	0.0
Total	23.8	23.2	47.0	20.3	22.4	42.7	(4.3)

Copyright (C) NITTO BOSEKI CO., LTD. All Rights Reserved

1H

FCST

(Aug.3)

11.5

5.0

16.5

(5.0)

11.5

11.5

10.5

6.8

1.2

0.5

42.0

6

Financial Results by Segment (Operating Profit)

（Billions of yen）

		FY2022			FY2023		Change
			1H			１H	(vsFY22)
	1Q	2Q	ACT	1Q	2Q	ACT	１H
Glass Fiber Yarn	0.4	(0.1)	0.4	(0.3)	(0.1)	(0.4)	(0.7)
Glass Fiber Cloth	1.4	1.3	2.7	0.8	1.3	2.1	(0.6)
Glass Fiber for	(0.0)	0.1	0.1	0.0	0.4	0.4	0.3
Industrial Materials
0.9	0.6	1.5	0.6	0.6	1.2	(0.3)
Life Science
Textile	0.0	0.0	0.1	0.0	0.0	0.0	(0.0)
Others & Adjustment	(0.1)	0.0	(0.1)	(0.2)	(0.0)	(0.2)	(0.1)
Total	2.6	2.0	4.6	0.9	2.2	3.1	(1.5)
ROS	11.0%	8.5%	9.8%	4.4%	10.0%	7.3%

1H

FCST

(Aug.3)

(0.6)

1.9

0.2

1.3

0.0

(0.3)

2.5

6.0%

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FY2023 Forecast

（From 2023/Apr. to 2024/Mar.）

Copyright (C) NITTO BOSEKI CO., LTD. All Rights Reserved

Overview by Segment in FY2023 2H Forecast

• Sales of composite materials and commodity products for electronic materials will continue to be sluggish.
• Demand for low-dielectric glass for AI server will continue to increase in the Special Glass market.

		Sales will continue to be sluggish
Glass	Composite	• Slump in demand for composite materials in the automotive and
materials	smartphone markets will bottom out; however, sales are not expected to
Fiber
	recover in 2H due to slowing growth in demand.
Yarn

		Demand for Special Glass (low-dielectric glass) will increase
	Electronic	• Demand for NE-glass for data center will continue to be strong, and
Glass
materials	demand for T-glass for semiconductor package substrate will recover, and
Fiber
	gradually increase.
Cloth

	Firm demand will be maintained
Glass Fiber for	•	Sales of insulation and glass cloth for equipment and construction
Industrial		materials will steadily increase.
Materials	•	Negative impact by a hike in the prices of raw material, electric, and fuel
		will be smaller than expected in the forecast as of August 2023.
Life Science	•	No change from the previous forecast.
Textile	•	No change from the previous forecast.
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FY2023 Forecast

（Billions of yen）

			FY2022					FY2023			Change
			１H	2H	Full Year			１H	2H	Full Year	YoY
	1Q	2Q	ACT	ACT	ACT	1Q	2Q	ACT	ACT	ACT	Full Year
Net sales	23.8	23.2	47.0	40.5	87.5	20.3	22.4	42.7	49.3	92.0	4.5
Operating profit	2.6	2.0	4.6	0.3	4.9	0.9	2.2	3.1	3.9	7.0	2.2
ROS％	11.0%	8.5%	9.8%	0.7%	5.6%	4.4%	10.0%	7.3%	8.0%	7.6%
EBITDA	4.6	4.1	8.7	4.4	13.1	2.6	4.0	6.6	8.0	14.6	1.6
EBITDA margin	19.5%	17.5%	18.5%	10.8%	15.0%	12.9%	17.9%	15.5%	16.2%	15.9%
Ordinary profit	3.6	2.6	6.2	(0.1)	6.1	1.9	2.3	4.2	3.3	7.5	1.4
Net profit	4.8	2.7	7.5	(4.7)	2.8	1.1	2.5	3.5	2.0	5.5	2.7

Full Year

FCST (Aug.3)

92.0

6.5

7.1%

13.8

15.0%

7.0

4.5

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