Asahi Diamond Industrial : 2nd quarter of the Fiscal Year ending March 2024 Financial results briefing（3.2 MB）

2nd quarter of the Fiscal Year ending March 2024

Financial results briefing

November 22, 2023

Contents

FY2023 2Q Financial Results

FY2023 Forecasts

Mid-term management plan progress

-2-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Financial Results (Consolidated)

										Unit:Millions of yen
				FY2022					FY2023
				1H Results	％	1H Results		％	YoY change	YoY change
				'22/4-9	'23/4-9		(%)
Net sales	19,656	100.0	18,827	100.0	▲828	▲4.2
Operating profit	1,536	7.8	638	3.4	▲897	▲58.4
Ordinary profit	2,129	10.8	1,215	6.5	▲913	▲42.9
Profit attributable to	1,549	7.9	1,269	6.7	▲280	▲18.1
owners of parent
	-
Earning per Share (Yen)	28.13	24.21	-	▲3.91	-
	Net sales/ Operating profit
				Operating profit
									(YoY change)

Decrease Factors

• Decrease in sales 553million yen

• Increase in manufacturing costs and SG&A expenses, including factory reorganization costs 400million yen

-3-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Quarterly trends and results (consolidated)

Unit:Millions of yen

		FY2022			FY2023
		3Q		4Q	１Q			２Q
	Results	%	Results	%	Results	%	Results	%
Net sales	10,061	100.0	9,603	100.0	9,028	100.0	9,799	100.0
Operating profit	777	7.7	192	2.0	252	2.8		385	3.9
Ordinary profit	900	9.0	245	2.6	556	6.2		659	6.7
Profit attributable to	647	6.4	568	5.9	532	5.9		737	7.5
owners of parent
Net Sales (Quarter)			Operating profit
		(Quarter)
						Unit︓％
							Operating profit	10.0
							Operating profit margin
								385	5.0
							252		3.9
							2.8
									0.0
						FY2023 Q1	FY2023 Q2
				-4-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Net Sales and Composition by Industry (Consolidated)

									Unit:Millions of yen
				FY2022			FY2023
			1H Results	％	2H Results	％	1H Results	％	YoY change	YoY change
			ʻ22/4-9	ʻ22/10-'23/3	ʻ23/4-9	(%)
		Electronics and	7,514	38.2	7,243	36.8	6,915	36.7	▲ 599	▲8.0
		Semiconductor
				4,271	21.7	4,469	23.8	459	11.5
		Transportation	4,010	20.4
		Machinery	5,377	27.4	5,263	26.8	4,733	25.1	▲ 644	▲12.0
		Stone and	2,077	10.6	2,161	11.0	2,125	11.3	47	2.3
		Construction
				724	3.7	584	3.1	▲ 92	▲13.7
		Other	677	3.4
		Total	19,656	100.0	19,664	100.0	18,827	100.0	▲ 828	▲4.2

Composition ratio

Electronics and Semiconductor

Transportation

Machinery

Stone and Construction

Other

-5-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Net Sales Breakdown by Industry: 1. Electronics and Semiconductor (Include Electroplated Diamond Wire)

Half-year

Net sales		Net Sales Expect Electroplated Diamond Wire
(Millions of yen)
	Electroplated Diamond Wire Sales

8,000	6,612	7,140	7,514	7,243	6,915
6,000
4,000
2,000
0	914	916	795	845	736
FY2021	FY2021	FY2022	FY2022	FY2023
	1H	2H	1H	2H	1H

Net sales	Quarter
(Millions of yen)
4,000	3,516 3,624 3,711 3,802 3,704 3,538	3,599
3,406		3,315
3,205
3,000

2,000

1,000

0

FY21	FY21	FY21	FY21	FY22	FY22	FY22	FY22	FY23	FY23
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q

Semiconductor and Electronic

Component

Sales decreased due to sluggish demand for digital devices and restrained capital investment

FPD(Flat Panel Display)

Sales decreased due to sluggish demand for major customers

Wire Drawing Die

Sales decreased slightly due to sluggish demand for semiconductors

Electrodeposited Diamond Wire

Overall sales decreased despite increase in sales for SiC for power semiconductors

※SiC: Silicon carbide

-6-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Net Sales Breakdown by Industry : 2. Transportation

Half-year

Net sales
(Millions of yen)				4,469
4,068	4,046	4,010	4,271
4,000

2,000

0
	FY2021	FY2021	FY2022	FY2022	FY2023
		1H	2H	1H	2H	1H
Net sales		Quarter
(Millions of yen)
3,000
						2,185	2,337
		1,9672,100	2,0581,988	2,052 2,086	2,132
2,000
			1,957

1,000

0

FY21	FY21	FY21	FY21	FY22	FY22	FY22	FY22	FY23	FY23
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q

Automobile

Sales of related tools increased due to recovery of automobile production as semiconductor shortage was resolved

Aircraft

Sales of related tools increased as demand recovered

-7-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Net Sales Breakdown by Industry : 3. Machinery

Net sales

Half-year

(Millions of yen)

5,000	4,824	5,008	5,377	5,263	4,733

4,000

3,000

2,000

1,000

0
FY2021	FY2021	FY2022	FY2022	FY2023
	1H	2H	1H	2H	1H
Net sales	Quarter
(Millions of yen)
3,000		2,477 2,530	2,646 2,730 2,734
2,464		2,529	2,326 2,406
2,360

2,000

1,000

0

FY21	FY21	FY21	FY21	FY22	FY22	FY22	FY22	FY23	FY23
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q

Bearing

Sales to bearing manufacturers decreased due to sluggish demand for machine tools, etc.

Cemented Carbide Tool

Sales to cemented carbide tool manufacturers decreased due to sluggish demand for machine tools, etc.

-8-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Net Sales Breakdown by Industry : 4. Stone and Construction

Net sales		Half-year
(Millions of yen)
	2,031	2,093	2,077	2,161	2,125
2,000

1,000

0
FY2021	FY2021	FY2022	FY2022	FY2023
	1H	2H	1H	2H		1H
Net sales	Quarter
(Millions of yen)
1,200	1,063	1,035 1,058	1,076	1,102	1,059	1,137
	1,001		987
1,000	967

800

600

400

200

0

FY21	FY21	FY21	FY21	FY22	FY22	FY22	FY22	FY23	FY23
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q

Resource Exploration

Sales increased due to steady growth in overseas markets

Construction in Japan

Sales of related tools increased mainly in highway repair and demolition work

Commercial Product

(Portable Cutter)

Sales decreased due to sluggish demand in Japan and overseas

-9-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.

Net Sales Breakdown by Geographical Region (Consolidated)

													Unit:Millions of yen
								FY2022			FY2023
						1H Results	％	2H Results	％	1H Results	％	YoY	YoY
						Change
						'22/4-9		'22/10-'23/3	'23/4-9	Change
										(%)
			Japan	9,711	49.4	9,468	48.0	8,615	45.8	▲1,095	▲11.3
					Taiwan	1,850	9.4	1,604	8.2	1,513	8.0	▲336	▲18.2
					China	2,167	11.0	2,153	11.0	1,741	9.2	▲425	▲19.6
					Other Asia and Oceania	2,711	13.8	2,965	15.1	2,966	15.8	255	9.4
					Europe	1,785	9.1	1,820	9.3	2,164	11.5	379	21.3
					North America	1,010	5.1	1,234	6.3	1,254	6.7	244	24.2
					Other	421	2.2	417	2.1	570	3.0	149	35.6
					Overseas total	9,945	50.6	10,195	52.0	10,212	54.2	266	2.7
			Total	19,656	100.0	19,664	100.0	18,827	100.0	▲828	▲4.2

Composition ratio

Japan

Sales of our main industries such as "Electronics and Semiconductor" and "Machinery" decreased

China

Sales of mainly in "Electronics and

Semiconductor" decreased

Europe & North America

Sales of mainly in "Electronics and Semiconductor" and "Transportation" increased

-10-

©All rights reserved by Asahi Diamond Industrial Co., Ltd.