B U S I N E S S H I G H L I G H T S
For t he f is c a l ye a r e nde d Ma rc h 3 1 , 2 0 2 4
May 7, 2024
N i t e rra C o . , L t d .
Niterra Co., Ltd. All Rights Reserved
Key Business Highlights
- Financial Results of FY2023
- Both sales revenue and operating profit have reached record highs. Furthermore, the performance goal for our medium-term management plan has been achieved one year ahead of schedule.
- In regard to the automotive components business, the revenue has increased regardless of the effect of FOREX by steadily implementing price increases; However, it has remained almost the same on a quantity basis as that of the previous fiscal year due to the struggle in the market in China.
- In the ceramic business, the revenue has been decreased compared to that of the previous fiscal year on the grounds it has been affected by the sluggish market due to the weak demand for semiconductors and the necessity of production control.
- The operating profit has increased by 21% compared to that of the previous fiscal year by implementing price rise and the continuous yen weakening.
- Full year dividend was increased from the latest forecast (160 yen per share) to 164 yen per share based on the payout ratio of 40%.
- Financial Plan of FY2024
- Both revenue and operating profit are expected to reach new record highs on the basis of yen strengthening. FOREX assumption: 1 USD = 140 JPN, and 1 Euro = 150 JPN
- The revenue is expected to be increased compared to the previous fiscal year by price rise and the recovery trend in the semiconductor market.
- In line with our revised policy of shareholder return, the annual dividend is expected to be 166 yen per share (with
2 yen dividend increase) under the combination of the stable dividend policy and performance-linked dividend policy.
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Contents
- Financial Results of FY2023
- Annual Plan for FY2024
- Progress of Medium-term Management Plan
- Shareholder Return
- Action to Achieve Cost-of-Capital and Stock-Price-Conscious Management
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1 Financial Results of FY2023
Summary of Financial Results FY2023(IFRS)
- The results have reached record highs; Furthermore, the performance goal for our medium-term management plan has been achieved ahead of schedule. Applying continuous price increase throughout this year enabled us to cover the influence of the decreased sales and profit due to the weak semiconductor market and
increasing labor costs.
Revenue
Operating profit
(ratio)
Profit before income taxes (ratio)
Profit attributable to owners of the parent (ratio)
US dollar
FOREX
Euro
FY2022
562.6
89.2
(15.9%)
93.4
(16.6%)
66.3
(11.8%)
- yen
- yen
FY2023 |
Difference
Amounts | Ratio | |
+51.9 | ||
109% | ||
+18.4 | 121% | |
+23.8 | 126% | |
+16.4 | 125% | |
10 yen | weak yen | |
16 yen | weak yen | |
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1 Financial Results of FY2023
Revenue
- In the automotive components business, the revenue has increased YoY with the implementation of price rise and weakening yen in spite of the weak China market.
- In the ceramic business, it has decreased due to the prolonged stagnation in the semiconductor market.
(Billion yen) | 562.6 | 614.5 |
New | 4.5 | 5.1 |
businesses | 96.5 | |
Ceramics | 110.8 | |
Spark & glow plugs
285.1 Billion yen ➡
335.3 Billion yen
- Sales increased by 18% YoY.
- Regarding OEM assembly products, it has remained almost the same on a quantity basis YoY due to the decreasing demand for general- purpose models in Europe and the rise of competitive local manufacturers in China; However, it has increased in Japan.
- The sales of AM products have been decreased in ASEAN; However, it has been recovered from the impact of the China lockdowns in the previous year.
170.0 | |
Sensors | 158.9 |
Spark& | 285.1 | 335.3 |
glow plugs | ||
FY2022 FY2023
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Sensors
158.9 | Billion yen ➡ | • Sales increased by 7% YoY by the recovery from chip shortage | ||||
170.0 | regardless of the influence by the weak market in China. | |||||
Billion yen | ||||||
• Sales decreased by 13% YoY. | ||||||
Ceramics | • In the semiconductor-related business including SPE, the sales have | |||||
110.8 | Billion yen ➡ | been decreased due to the continuous weak demand caused by the | ||||
stagnation in the market. | ||||||
96.5 | ||||||
Billion yen | • In the medical business, the MGC recently acquired has contributed | |||||
to the increase YoY. | ||||||
New businesses | ||||||
4.5 Billion yen ➡ | • Sales remained almost the same level as the previous fiscal year. | |||||
5.1 Billion yen | Niterra Co., Ltd. All Rights Reserved | 4 | ||||
1 Financial Results of FY2023
Automotive Components - Results of Sales Volume and Amounts
- The production volume of ICE vehicles has increased by 5.7% YoY.
- The sales amounts in main regions have increased, whereas it has remained almost the same on a quantity basis YoY due to the decreasing demand for general-purpose models and the rise of competitive local manufacturers in China.
- Sales Volume and Amounts By Region: FY2022 vs FY2023
Region
ICE Automotive
Production Volume
(Niterra estimation)
Sales Amounts | Sales Volume | |||
(Exclude FOREX) | ||||
Spark plugs | Sensors | Spark plugs | Sensors | |
OEM | AM | for exhaust gas | ||
North America | + 7.7 % | + 8.6 % | + 2.7 % | ▲ 1.4 % | ▲ 1.8 % | ▲ 1.2 % |
Europe | +10.6 % | + 12.3 % | ▲ 6.5 % | ▲ 6.2 % | + 7.5 % | ▲ 1.1 % |
China | + 16.9 % | + 14.3 % | + 14.0 % | ▲ 0.9 % | + 17.4 % | + 16.7 % |
(▲ 6.4 %)※1 | ||||||
South East Asia | ▲ 7.3 % | ▲ 4.4 % | ▲ 4.4 % | ▲ 7.9 %※2 | ▲ 11.9 % | ▲ 2.8 % |
Global Total | + 5.7 % | + 9.5 % | + 0.3% | ▲ 0.1 % | ▲ 0.1 % | + 3.4% |
※1 ICE vehicle production by Japanese, European and American automobile makers, which are Niterra's customer in China. | ||
※2 The situation is complex, and considering the relatively low sales proportion of OEM in ASEAN, we excluded OEM from this scenario. | ||
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1 Financial Results of FY2023
Operating Profit
- In the automotive components business, it has increased YoY regardless of the effect of FOREX .
- In the ceramic business, it has decreased due to the decrease in shipments for the semiconductor market and the end of special demands in the medical business.
(Billion yen) | 89.2 | 107.6 |
Temporary factor ※ |
1.9
Ceramics 11.0
Automotive components
93.3 Billion yen ➡
121.2 Billion yen
- In OEM assembly products, the profit has increased YoY by the robust sales performance, steady progress of precious metallization, and proper price rise
- .Shifting to weak yen has also contributed to the results.
121.2
Automotive
components 93.3
Ceramics
11.0 Billion yen ➡ ▲ 0.6 Billion yen
- The profit has decreased YoY, mainly due to unsteady demand for SPE caused by market downturn.
-
In the medical business, it has been declined YoY due to the demand decrease in line with
the end of temporary high demands for oxygen concentrators for COVID-19, and the rise of competitive local manufacturers in China.
New businesses | |||||
New Businesses ▲ 17.1 | ▲ 13.2 | ||||
▲ 17.1 | Billion yen ➡ | ||||
FY2022 | FY2023 ▲0.6 | ▲ 13.2 | Billion yen |
※Gains on partial sale of former headquarters' land
- It remained almost the same excluding the impact of impairment in the fuel cell business in the previous fiscal year (4 billion yen).
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1 Financial Results of FY2023
Operating Profit Variance - YoY
- The target operating profit of 100 Billion yen for our medium-term management plan has been achieved one year ahead of schedule.
- Despite the sales decline caused by temporary market downturn in the semiconductor business and the rising labor costs, it has increased by implementing price rise in response to inflation and the weakening
yen trend.
Main factors: | +18.0 | |
Closure of the French factory | + 1.8 | |
Impairment loss of CECYLLS Company | + 4.0 | |
Impairment loss of Wells Company | + 2.5 | |
Gains on partial sale of former headquarters' land | ▲ 1.9 |
OP margin | OP margin | |||||||||
15.9% | 17.1% | |||||||||
Price | Packing& | |||||||||
Temporary | FY2022 | Material Depreciation | Energy | |||||||
FY2022 | Labor | |||||||||
rise | ||||||||||
factors | ※1 | transportation | costs | prices | Expenses | |||||
costs | ※2 | |||||||||
Niterra Co., Ltd. All Rights Reserved | ||||||||||
(Billion yen)
Main factors:
Impairment loss | ▲ 3.3 |
M&A, DD costs and others ▲ 1.1
▲3.1
※1: Without temporary factors | OP margin | OP margin | |||||
※2: Bonus and salary increase | |||||||
18.6% | 17.5% | ||||||
※3: Excluding labor increase | |||||||
SG&A | Sales increase FOREX | FY2023 | |||||
FY2023 | Temporary | ||||||
※3 | & product | ※1 | factors | ||||
compositionNiterra Co., Ltd. All Rights Reserved | 7 | ||||||
1 Financial Results of FY2023
FOREX Impact
▍ FOREX Impact (Impact for operating profit)
FOREX (JPY) | FOREX Impact | ||
Currency | |||
FY 2022 rate | FY2023 rate | (Billion yen) | |
USD | US Dollar | 135.5 | 144.6 | +3.5 | ※ |
141.0 | 156.8 | +6.2 | |||
EUR | Euro | ||||
19.7 | 20.1 | +0.7 | |||
CNY | Chinese Yuan | ||||
BRL | Brazilian Real | 26.3 | 29.3 | +1.4 | |
3.8 | 4.1 | +2.7 | |||
THB | Thai Baht | ||||
6.9 | 8.4 | +1.4 | |||
MXN | Mexican Peso | ||||
+2.1 | |||||
Others | |||||
Total | +18.0 | ||||
※ The FOREX Impact Includes the negative impact of 2 billion yen on raw materials which have been purchased in US dollars.
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Contents
- Financial Results of FY2023
- Annual Plan for FY2024
- Progress of Medium-term Management Plan
- Shareholder Return
- Action to Achieve Cost-of-Capital and Stock-Price-Conscious Management
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NGK Spark Plug Co. Ltd. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 01:02:04 UTC.