Presentation Material...Best Solution & True Innovation 1 Nippon Chemi-Con Corporation Nov4 , 2015...
Transcript of Presentation Material...Best Solution & True Innovation 1 Nippon Chemi-Con Corporation Nov4 , 2015...
Best Solution & True Innovation
1Nippon Chemi-Con Corporation Nov 4 , 2015
Presentation MaterialFirst Half of Fiscal Year Ending March 31, 2016
November 4, 2015
Nippon Chemi-Con Corporation
Best Solution & True Innovation
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Contents
1. Strengthening corporate governance
2. Outlook for the second half of FY2015
3. Practice of management innovation
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���� Basic Approach to Corporate GovernanceNippon Chemi-Con works continuously to pursue best corporate governance to realize its corporate philosophy.From the viewpoint of facilitating the sustained growth and improvement of the corporate value of the company, Nippon Chemi-Con works to improve corporate governance by ensuring transparency and fairness of decision-making, efficiently using company's business resources, and increasing the vitality of the management by making decisions rapidly and decisively.
� Basic Policy for Corporate GovernanceWe have established our Basic Policy for Corporate Governance on October 26 to clarify specific actions we need to take and to ensure accountability to our shareholders.To realize constructive dialogue with shareholders, we disclose its contents and enhance corporate governance.
1.Strengthening Corporate Governance
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To build a new
relationship with our
stakeholders
Financial information
Conventional disclosure + ROE etc.
Non-financial
informationEnvironmentSocial Governance
To promote dialogues with stakeholders from medium to long term perspective and increase corporate value of the company, Nippon Chemi-Con publishes CHEMI-CON REPORT which integrates financial information and non-financial information. We will work to improve this report with the help of the opinions from readers.
CHEMI-CON REPORT
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Medium to long term Vision
● First stepEstablish overwhelming competitive advantage in aluminum electrolytic capacitors business
12 ● Second step
Develop DLCAP™business into a business that rivals our aluminum electrolytic capacitor business
3 ● Third stepEnhance functional devices business and functional materials business
V ● Medium to long term VisionAim to become a company with net sales of 200 billion yen per year in the early 2020Aiming to increase shareholder value by sustainable growth strategy and aggressive management
Reinforce alliance partnership to enhance each business
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● First step
Operating income margin: 10%1
2 ● Second step
Total asset turnover ratio:1.0 or more
3 ● Third stepStrengthening financial base, FCF focused⇒ Aggressive investment, Equity ratio of 50% or more
G ● Goal: return on equity of 10% or more
ROE goal: 10% or more
Shift the earnings structure by clarification of business strategies
ROE: 10% or moreMedium to long term Goals
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Contents
1. Strengthening corporate governance
2. Outlook for the second half of FY2015
3. Practice of management innovation
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Consolidated Results ForecastFY2014
(Actual)FY2015(Revised Forecast)
Difference
Net sales 123,365 120,000 (3,365)Operating income 5,122 4,000 (1,122)Ordinary income 6,207 3,800 (2,407)Net income 5,362 3,000 (2,362)ROAROE
3.7%7.6%
2.1%3.8%
-1.6%-3.8%
(Million Yen)
Average exchange rate1US$ (JPY)1EUR (JPY) ¥109.93
¥138.77¥120.90¥135.04
Capital Investment 5,203 6,000 797Depreciation and amortization 7,373 7,300 (73) R&D Expenses 4,160 4,500 340
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Sales by product categoryFY2014Actual
FY20151H (Actual)
FY20152H(Forecast)
FY2015Forecast
YoY
Aluminum ElectrolyticCapacitors
104.195 52,095 50,505 102,600 -1.5%
(Conductive Polymer Aluminum Solid Capacitors)
10,404 5,043 5,257 10,300 -1.0%
DLCAPTM 4,302 1,952 2,248 4,200 -2.4%
Other Capacitors 4,126 1,762 1,838 3,600 -12.7%
Capacitors Total 112,624 55,809 54,591 110,400 -2.0%
Electro-Mechanical Parts and Other Parts
2,720 1,358 1,342 2,700 -0.7%
Capacitor Materials 5,902 2,489 2,611 5,100 -13.6%
Other 2,118 966 834 1,800 -15.0%
Total 123,365 60,623 59,377 120,000 -2.7%
( Million Yen )
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Sales by Region (All products)
12% 14% 14%
44% 43% 43%
10% 10% 10%10% 11% 11%
24% 22% 22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2014Actual
FY20151H
FY2015Forecast
Japan
Americas
Europe
China
Other Asia
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7% 7% 7%
33% 34% 34%
10% 10% 10%3% 3% 3%
26% 23% 23%
21% 23% 23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2014
Actual
FY2015
1H
FY2015
Forecast
Other
Automotive electronics
Industrial equipment
New Energy
Home Appliances
ICT
Sales by Market (Aluminum Electrolytic Capacitors )
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7% 7% 7%
30% 32% 32%
9% 9% 9%3% 3% 3%
27% 23% 23%
24% 26% 26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2014 FY2015
1H
FY2015
Forecast
Other
Automotive electronics
Industrial equipment
New Energy
Home Appliances
ICT
Automotive electronics market to grow(Further development of electronic control, strong demand for ceramic capacitors and module products), Slowdown in industrial equipment market
Sales by Market (All products)
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Contents
1. Strengthening corporate governance
2. Outlook for the second half of FY2015
3. Practice of management innovation
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1) Total optimization by integrated operation of materialdivision and assembling division
3.Practice of Management Innovation
2) Strengthening aluminum electrolytic capacitors business Clarifying supervisory responsibility for each product category
3) Cost reduction and increase in asset turnover ratio by intensification of production items of aluminum electrolytic capacitors
4) Supply Chain Management Reform (Reduction in SG&A expenses, reduction in inventories,
optimization of lead time etc.)
5) Strengthening management of affiliated companies (Intensification and enhanced management control)
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To our Shareholders, Investors, and Stakeholders
Nippon Chemi-Con has outlined our 3-year goals and 10-year vision as we aim to continuously improve corporate value.
Ikuo Uchiyama, President
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〔Note〕The projected performance figures in this material are based on information available to Nippon Chemi-Con’s management at the time this material was prepared. There are many uncertain factors inherent in forecasting, and there might be cases in which actual results differ from forecast values. Nippon Chemi-Con undertakes no obligation to publicly update or revise any forward-looking statements included in this material.
If you are interested in investing in Nippon Chemi-Con, you are requested to make a final investment decision at your own risk. Please note that neither Nippon Chemi-Con nor any third party providing information shall be responsible for any damage or loss you may suffer due to investment in Nippon Chemi-Con based on the information shown in this material.