Translation

Financial Results Explanatory Material

for 2Q FY2022

(Six months ended September 30, 2022)

1

NIPPON CHEMI‐CON CORPORATION

November 2022

1. Progress of the 9th Medium‐term Management Plan (FY2020‐2021 Results, FY2022 Forecast）

Translation

Shift to a corporate structure capable of responding flexibly to changes in the business environment

Improve financial position by improving asset efficiency and reducing fixed costs

FY2020

FY2021

FY2022

9th Medium‐term

(forecast)

FY2022 goals

Net sales

¥110.7b

¥140.3b

¥155.0b

¥140.0b

Operating income

¥2.9b

¥8.7b

¥9.3b

¥10.0b

Net income

¥2.0b

¥(12.1b)

¥3.0b

¥6.0b

ROE

4.5%

(25.3)%

6.5％

10% and higher

Total asset turnover ratio

0.8

0.9

1.0

1.0 and higher

2

NIPPON CHEMI‐CON CORPORATION

November 2022

2. Net Sales and Operating Income (FY2020‐2021 Results, FY2022 Forecast)

Translation

Net sales (billion yen) Operating income margin

7.2% 7.2%

6.4% 6.2%

2H (forecast)

5.7%

4.3%

5.1% 5.4%

5.1%

1.8%

Further weakening of yen

‐1.3%

Completion of structural reforms

37.8

38.4 38.6

2H (forecast)

30.9

33.4

33.1

36.0

78.0

28.4

27.7

Russia‐Ukraine war

23.8

COVID‐19

US‐China trade friction

FY2020

2Q

3Q

4Q

FY2021

2Ｑ

3Ｑ

4Ｑ

FY2022

2Q

3Q

4Q

1Q

1Q

1Q

(forecast) (forecast)

3

NIPPON CHEMI‐CON CORPORATION

November 2022

3. 1H FY2022 Results and Full‐Year Forecast

Translation

Aim to achieve full‐year targets announced by completing structural reforms

FY2021

FY2022

YoY

1H

Full‐year

1H

Full‐year

Amount

%

(forecast)

Net sales

66,502

140,316

77,041

155,000

+14,684

+10.5%

Operating income

3,492

8,798

4,853

9,300

+501

+5.7%

Ratio to net sales

5.3%

6.3%

6.3%

6.0%

Ordinary income

3,324

8,038

4,803

8,800

+761

+9.5%

Ratio to net sales

5.0%

5.7%

6.2%

5.7%

Profit/loss attributable to

2,497

‐12,124

‐514

3,000

+15,124

‐

owners of parent

Ratio to net sales

3.8%

‐8.6

‐0.7%

1.9%

Capital investment

2,817

5,858

3,611

8,500

+2,641

+45.1%

Depreciation

2,868

5,885

2,933

6,000

+114

+1.9%

R&D expenses

1,992

4,156

2,165

4,500

+343

+8.3%

Avg exchange rate

1USD (YEN)

109.80

112.38

133.97

134.49

19.7% weaker yen

1EUR (YEN)

130.90

130.56

138.73

138.37

6.0% weaker yen

4

NIPPON CHEMI‐CON CORPORATION

November 2022

Translation

5. Improvement Effect From Structural Reforms (1H FY2022)

Effects (billion yen)

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

52% of plan achieved for 1H FY2022

6.2

Fixed cost reduction

Productivity improvement

2.5New products

3.2

Progress rate: 34%

1.1

New product launches by

0.9

customers delayed

Progress rate: 87%

1.0

2.5

Development of smart factories

Progress rate: 54%

1.4

Investment through selection

and concentration

FY2022

1H FY2022

(plan)

NIPPON CHEMI‐CON CORPORATION

November 2022 5

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Nippon Chemi-con Corporation published this content on 11 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2022 08:41:06 UTC.