FY2023 Financial Results

May 20th, 2024

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Table of Contents

１． FY2023 Summary of Consolidated Financial Results

２． FY2024 Full-Year Forecast

３．Mid-Term Management Plan (FY2024-FY2026)

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2

Summary

FY2023

Financial

Results

Summary

FY2024

Full-Year

Forecast

Mid-Term

Management

Plan

  • Due to the recovery of production volume and foreign exchange impacts etc., sales, operating profit, and recurring profit reached record high
  • Due to the extraordinary loss caused by the business divestiture of German subsidiaries, net income was declined
  • Profit is expected to increase despite of the assumption of strong yen (143 yen to the dollar)
  • Aim for operating profit ratio of over 13%.
  • Profitability is expected to be improved in part by the business divestiture of loss-making German subsidiaries as mentioned above
  • Aim for a stable growth through continuous improvement in installed value per vehicle, cost reduction, and fixed cost control

- FY2026 Target :

Sales - 375 billion yen, OP - 50 billion yen ROE - 12％, ROIC - 17%

Total Payout Ratio - over 45%

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3

Table of Contents

１． FY2023 Summary of Consolidated Financial Results

２． FY2024 Full-Year Forecast

３．Mid-Term Management Plan (FY2024-FY2026)

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4

1. Financial Highlights

Historical sales and Operating Profit (OP)

  • Record-highsales were recorded in 4Q following 3Q.
  • OPM remained steady with an upper 12% level.

(Billions of yen)

97.9 20.0%

100.0

Net sales:

90.0

Operating Margin:

15.0%

80.0

12.7%

70.0

10.0%

60.0

50.0

5.0%

40.0

0.0%

30.0

20.0

-5.0%

10.0

0.0

-10.0%

08/1Q

3Q

09/1Q

3Q

10/Q1

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

3Q

1) Overseas: January - December 2023, Japan: April 2023 - March 2024

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5

2. Overview of FY2023 4Q Consolidated

Highest level of sales, OP and OP Margin in the past year

  • Both sales and OP increased QoQ, mainly due to yen depreciation and strong performance in Japan.
  • Net income was negative due to the divestiture of the German business.

Net Sales

Operating

profit

OP margin

Net income1)

EPS

FY2022

FY2023

4Q

1Q

2Q

3Q

4Q

QoQ

87.5bn

87.9bn

90.9bn

94.9bn

97.9bn

+11.8%

8.9bn

10.1bn

10.5bn

10.8bn

12.4bn

+38.4%

10.2%

11.5%

11.6%

11.4%

12.7%

+2.5%pts

2.6bn

9.7bn

7.6bn

6.1bn

-5.1bn

-295.3%

26.37yen

97.50yen

76.22yen 61.02yen

-51.91yen

-296.9%

FX rates

1USD=131.6yen

1USD=132.4yen

1USD=135.0yen

1USD=138.2yen

1USD=140.7yen

1USD=+9.1yen

1EUR=138.1yen

1EUR=142.1yen

1EUR=145.9yen

1EUR=149.8yen

1EUR=152.1yen

1EUR=+14.0yen

1) Net income is net income attributable to parent company

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6

3. Overview of FY2023 4Q Consolidated Financials(Cumulative)

Sales and OP increased YoY. OPM remained solid at 11.8%

  • Both sales and OP increased YoY mainly due to yen depreciation and strong performance in Japan
  • OPM remained steady at 11.8%

FY2021

FY2022

FY2023

Net Sales

Operating

profit

OP margin

Net income 1)

EPS

FX rates

Full-Year

Full-Year

Full-Year

YoY

283.7bn

321.7bn

371.6bn

+15.5%

30.5bn

34.4bn

43.9bn

+27.5%

10.7%

10.7%

11.8%

+1.1%pts

22.9bn

21.1bn

18.2bn

-13.8%

227.27yen

211.28yen

183.26yen

-13.3%

1USD=109.9yen

1USD=131.6yen

1USD=140.7yen

1USD=+9.1円

1EUR=129.9yen

1EUR=138.1yen

1EUR=152.1yen

1EUR=+14.0円

1) Net income is net income attributable to parent company

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7

4. FY2023 Q4 Cumulative Consolidated OP (YoY)1)

Operating profit analysis (YoY)

  • OP increased driven by sales increase due to recovery in production volume.
  • Fixed costs increased due to inflation, but were controlled to a certain level, including variable costs.

+0.09bn

-8.5bn

+16.1bn+1.8bn

43.9bn

34.4bn

Operating profit

Sales

Marginal profit

Fixed cost

FX rate

Operating profit

(FY2022 full-year)

factors

ratio factors

factors

factors

(FY2023 full-year)

1) Overseas: January - December 2023, Japan: April 2023 - March 2024

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5. FY2023 4Q Cumulative Net Sales by segment(Sales) 1)

Achieved revenue growth in all regions and all segments except china

  • 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
    FY2022 FY2023

(JPN)

(Full-Year)

(Full-Year)

YoY

Note

Consolidated

Plastics

Japan

North

America

Europe

Asia

China

Bed

Japan

Asia

321.7bn

371.6bn

+15.5%

288.7bn

334.7bn

+15.9%

77.4bn

85.9bn

+11.0%

71.4bn

90.1bn

+26.2%

37.7bn

47.6bn

+26.3%

102.2bn

111.1bn

+8.7%

33.2bn

30.9bn

-6.9%

33.0bn

36.9bn

+11.8%

17.1bn

18.9bn

+10.5%

15.9bn

18.0bn

+13.2%

Automobile production recovery

Automobile production recovery of Japanese OEMs

Automobile production recovery

Strong production of Korean OEMs

Decreased automobile production of Japanese OEMs

Sales to hotels recovery

1) Overseas: January - December 2023, Japan: April 2023 - March 2024

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6. FY2023 4Q by Segment (OP) 1)

Managed on a consolidated, although the situation differs from region to region

  • Margin improvement in Europe and Japan, drove the rise in OPM
  • Although China continues to face a difficult business environment due to the impact of declining sales but were controlled fixed cost and secured OPM.
    FY2022 FY2023

(JPN)

(Full-Year)

(Full-Year)

YoY

Note

34.4bn

43.9bn

+27.6%

Consolidated

(10.7%)

(11.8%)

Plastics

34.0bn

42.8bn

+25.9%

(11.8%)

(12.8%)

Japan

12.4bn

17.7bn

+42.7%

Improvement due to increased sales

(16.1%)

(20.6%)

and fixed cost management

North

2.7bn

2.4bn

-11.1%

Improvement due to increased sales

America

(3.7%)

(2.7%)

and fixed cost management

Europe

0.8bn

3.1bn

+287.5%

Improved utilization ratio due to

(2.1%)

(6.5%)

increased production volume

Asia

18.2bn

19.5bn

+7.1%

Some drops, but remain strong

(17.8%)

(17.5%)

China

5.5bn

5.3bn

-3.6%

Despite decrease in profits, the profit rate

(16.5%)

(17.2%)

was increased by controlling fixed costs.

Bed

5.9bn

6.5bn

+10.2%

(17.8%)

(17.7%)

Japan

2.3bn

2.7bn

+17.4%

(13.7%)

(14.3%)

Asia

3.6bn

3.8bn

+5.6%

(22.2%)

(21.2%)

1) Overseas: January - December 2023, Japan: April 2023 - March 2024

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Nifco Inc. published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 01:39:08 UTC.