NITTOSEIKO CO.,LTD. （Issue code: Tokyo Stock Exchange Prime 5957）
Results Briefing for the fiscal year ended December 2023
■ Explained by
Makoto Araga, President
Contents
１．Summary of Financial Results for the Fiscal Year Ended Dec 31, 2023
Summary of Financial Results
Overview of Results by Segment
２．Progress of the Medium-Term Business plan
Progress of the Medium-term Business plan "Mission G-second"
Actions to achieve management with
a focus on cost of capital and stock price
Growth #1 Business Expansion Strategy
Growth #2 Environmental Strategy
Growth #3 Human Resource Strategy
Growth #4 Financial Strategy
３．Forecast for the Fiscal Year Ending Dec 31, 2024
Forecast for the Fiscal Year
Ending Dec 31, 2024
Shareholder Returns
４．Appendix
Balance Sheet
Cash Flow Statement
Capital Expenditures, Depreciation and R&D Expenses
Management Approach
©2024 NITTOSEIKO CO., LTD. | 1 |
１．Summary of Financial Results
for the Fiscal Year Ended Dec 31, 2023
©2024 NITTOSEIKO CO., LTD. | 2 |
Summary of Financial Results
2022/12 | 2023/12 | 2023/12 Results | ||||||||
YoY | Compared to forecast | |||||||||
Unit: Million yen / % | Full Year | Full Year | (as of Nov. 14. 2023) | |||||||
Amount | Ratio | Amount | Ratio | Amount | Forecast | Amount | % Change | |||
% Change | ||||||||||
(%) | (%) | change | amount | change | ||||||
Net sales | 44,021 | 100.0 | 44,744 | 100.0 | 722 | 1.6 | 45,000 | △ 255 | △ 0.6 | |
Gross profit | 10,377 | 23.6 | 10,183 | 22.8 | △ 194 | △ 1.9 | ||||
Selling, general and administrative | 7,445 | 16.9 | 7,568 | 16.9 | 123 | 1.7 | ||||
expenses | ||||||||||
Operating income | 2,931 | 6.7 | 2,614 | 5.8 | △ 317 | △ 10.8 | 2,600 | 14 | 0.5 | |
Ordinary income | 3,235 | 7.3 | 2,835 | 6.3 | △ 399 | △ 12.4 | 2,800 | 35 | 1.3 | |
Net income for current period before | 3,194 | 7.3 | 2,830 | 6.3 | △ 363 | △ 11.4 | ||||
income taxes | ||||||||||
Net income attributed to shareholders | 1,828 | 4.2 | 1,734 | 3.9 | △ 94 | △ 5.1 | 1,700 | 34 | 2.0 | |
of the parent company | ||||||||||
Net income per share (yen) | 49.5 | - | 46.95 | - | - | - | 46.01 | |||
Main points
Net Sales
Operating
Income
Overseas
- KM SEIKO Co., Ltd. and Pinning Co., Ltd., which became consolidated subsidiaries in April 2022, and Nittoseiko Analytech Europe GmbH, established in Germany in April 2023, contributed to business performance. In addition, sales of fastener products for the automobile, housing, and construction industries, and control products such as analytical instruments for the chemical and pharmaceutical industries showed growth, resulting in a 1.6% YoY sales increase.
- Operating income declined 10.8% YoY due to the significant impact of sluggish orders caused by the slowdown of the U.S. and Chinese economies, despite sales price revisions and cost reductions in both production and sales operations in response to soaring resource and raw material prices.
- Overseas sales declined slightly due to the slowdown of the U.S. and Chinese economies as well as prolonged inventory adjustments by customers in Southeast Asia.
©2024 NITTOSEIKO CO., LTD. | 3 |
Summary of Financial Results - Net Sales
▌Analysis of Net Sales
▌Change in net sales by segment
Million
Yen Business
Expansion
Change in
sales
Price
pass-on
Million
Yen
KM SEIKO Co., Ltd., Pinning Co., Ltd. and Nittoseiko Analytech Europe GmbH contributed to business performance.
Sales decreased due to the slowdown of the U.S. and Chinese economies and prolonged inventory adjustment by customers in Southeast Asia, despite strong sales in the automobile and chemical/ pharmaceutical industries.
Efforts to promote price pass-on in response to soaring material costs encountered difficulties.
©2024 NITTOSEIKO CO., LTD. | 4 |
Summary of Financial Results - Operating Income
▌ Analysis of Operating Income
▌Change in Operating Income by segment
Million Material
Yen cost
Material
cost and
SG&A
expenses
Business
Expansion
Million
Yen
Efforts to promote price pass-on in response to soaring material costs encountered difficulties. Material cost increased by 1.7% YoY, up 493 million yen.
Energy cost increased by 7.6% YoY, up 69 million yen.
KM SEIKO Co., Ltd., Pinning Co., Ltd.
and Nittoseiko Analytech Europe
GmbH contributed to business
performance.
©2024 NITTOSEIKO CO., LTD. | 5 |
Overview of Results by Segment - Fastener Segment
Million | Net Sales | Million | Operating Income | • Net sales increased due to strong demand | ||||
Yen | Yen | from the housing and construction sectors | ||||||
32,199 | 32,855 | 1,545 | 1,648 | 1,625 | in North America, in addition to the | |||
24,903 | 27,896 | mainstay automotive sector. | ||||||
23,366 | ||||||||
• Operating income decreased due to difficult | ||||||||
548 | 557 | negotiations to pass on higher prices for | ||||||
energy and subsidiary materials, despite | ||||||||
efforts to improve efficiency and reduce | ||||||||
2019 | 2020 2021 2022 | 2023 | 2019 | 2020 2021 | 2022 | 2023 | costs by consolidating manufacturing plants. |
▌Net Sales by Industry
2022/12 | 2023/12 | YoY | |||
Unit: Mil yen/ % | Full Year | Full Year | |||
Amount | Amount | Amount | % Change | ||
Net sales | 32,199 | 32,855 | 656 | 2.0 | |
Automobile | 11,417 | 12,955 | 1,538 | 13.5 | |
Housing and | 6,926 | 7,466 | 540 | 7.8 | |
construction | |||||
Electrical and | 5,191 | 4,588 | △ 602 | △ 11.6 | |
electronic parts | |||||
Household goods | 2,775 | 2,140 | △ 635 | △ 22.9 | |
IT and digital | 1,603 | 1,254 | △ 348 | △ 21.7 | |
equipment | |||||
Precision | 1,142 | 1,098 | △ 44 | △ 3.9 | |
equipment | |||||
Medical | 323 | 289 | △ 34 | △ 10.6 | |
Others | 2,817 | 3,061 | 244 | 8.7 | |
▌Net Sales by Region North America
+330Mil Yen
2023
East Asia, | ||
Overseas | 9.7% | |
Southeast | ||
Japan, | North | |
27.8% | ||
Asia, 14.6% | ||
72.2% | America, | |
3.4% | ||
Others, 0.1% |
2022
East Asia, | ||
10.1% | ||
Overseas | Southeast | North |
Japan, | ||
America, | ||
28.8% | Asia, 16.1% | |
71.2% | ||
2.4% | ||
Others,
0.1%
©2024 NITTOSEIKO CO., LTD. | 6 |
Overview of Results by Segment - Assembly Machine Segment
Million | Net Sales | Million | Operating Income | • Net sales decreased due to sluggish orders, | ||||||||
Yen | Yen | especially in the U.S. and China, with increasing | ||||||||||
1,904 | ||||||||||||
uncertainty in the global economy pushing down | ||||||||||||
7,800 | 1,608 | |||||||||||
7,182 | the appetite for capital investment, despite growing | |||||||||||
6,515 | 5,955 | 1,227 | ||||||||||
momentum for automation against a backdrop of | ||||||||||||
5,454 | ||||||||||||
911 | ||||||||||||
822 | demand for electrification and labor shortages. | |||||||||||
• Operating income decreased due to lower orders | ||||||||||||
for special machines and low orders in the U.S., | ||||||||||||
despite efforts to pass on selling prices of standard | ||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | machines. | ||
▌Net Sales by Industry
2022/12 | 2023/12 | YoY | |||
Unit: Mil yen/ % | Full Year | Full Year | |||
Amount | Amount | Amount | % Change | ||
Net sales | 6,515 | 5,955 | △ 559 | △ 8.6 | |
Automobile | 3,889 | 3,410 | △ 479 | △ 12.3 | |
Electrical and | 789 | 1,026 | 237 | 30.0 | |
electronic parts | |||||
Amusement | 64 | 212 | 148 | 230.3 | |
machine | |||||
Energy sector | 327 | 199 | △ 127 | △ 38.8 | |
Housing and | 134 | 180 | 45 | 33.4 | |
construction | |||||
IT and digital | 147 | 178 | 30 | 20.4 | |
equipment | |||||
Others | 1,163 | 748 | △ 415 | △ 35.7 | |
▌Net Sales by Region
2023
North | |||
America, | |||
Overseas, | East Asia, | ||
Japan, | 11.1% | ||
69.2% | 30.8% | 13.3% | |
Southeast | |||
Asia, 5.1% | Europe, | ||
Others, 0.5% | 0.9% |
2022
North | |||
East Asia, America, | |||
Japan, | Overseas, | 11.8% | 15.6% |
66.1% | 33.9% | Southeast | |
Asia, 5.0%
Europe,
Others, 0.5% 0.9%
©2024 NITTOSEIKO CO., LTD. | 7 |
Overview of Results by Segment - Control System Segment
Million Net Sales | Million Operating Income | • Both net sales and operating income | |||
Yen | Yen | increased due to strong demand for | |||
5,915 | 278 | flowmeters, and increased sales of | |||
5,416 | 5,296 | ||||
143 | 156 | 157 | analyzers at new branches in Europe. | ||
4,010 | |||||
2,152 | ||||||||||
-164 | ||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | ||||||
2019 | 2020 | 2021 | 2022 | 2023 |
- sales of analyzers increased due to a recovery in demand and the resolution of parts shortages after the corona pandemic.
▌Net Sales by Industry
2022/12 | 2023/12 | YoY | |
Unit: Mil yen/ % | Full Year | Full Year | |
Amount | Amount | Amount % Change | |
Net sales | 5,296 | 5,915 | 619 | 11.7 | |
Chemical and | 1,183 | 1,412 | 229 | 19.4 | |
pharmaceuticals | |||||
Energy sector | 853 | 900 | 47 | 5.6 | |
Housing and | 548 | 438 | △ 109 | △ 20.0 | |
construction | |||||
Electrical and | 304 | 414 | 110 | 36.2 | |
electronic parts | |||||
Automobile | 367 | 411 | 44 | 12.0 | |
Ship building | 284 | 306 | 22 | 7.8 | |
Environment | 272 | 268 | △ 4 | △ 1.6 | |
Medical | 133 | 181 | 47 | 35.7 | |
Others | 1,349 | 1,580 | 231 | 17.2 | |
▌Net Sales by Region
2023
North | |||
America, Europe, | |||
6.6% | 8.5% | ||
Japan, | Overseas, | East Asia, | Others, |
64.9% | 35.1% | 10.8% | |
5.8%
Southeast
Asia, 3.5%
2022
North | |||
America,Europe, | |||
5.6% | 7.6% | ||
Japan, | Overseas, | Others, | |
East Asia, | |||
69.2% | 30.8% | 5.2% | |
8.9% Southeast
Asia, 3.6%
©2024 NITTOSEIKO CO., LTD. | 8 |
２．Progress of the Medium- Term Business plan
©2024 NITTOSEIKO CO., LTD. | 9 |
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Nitto Seiko Co. Ltd. published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 06:34:05 UTC.
