Nichias : Financial Results FY2020 Quarter 1

Financial Results

FY2020 Quarter 1

1st April, 2020 - 30th June, 2020

All forecasts and plan that are not historical facts in this document are future business result related forecast. These are showed by based on information and data currently available to the company. Various uncertain factors could cause actual results to differ.

3rd August, 2020

Copyright ©2020 NICHIAS Corporation, All Rights Reserved.

Extension of Medium-term business plan

	197.5	215.5	208.9	Extended
180.4	190.0

[TOP] Net sales, [Middle]Operating income, [Bottom]Operating margin	(Unit: Billion yen)

Copyright ©2020 NICHIAS Corporation, All Rights Reserved.	2

Business outlook FY2020 Q1 (1st April, 2020 - 30th June, 2020)

Segments

Energy and

Industrial plants

Industrial products

Advanced

products

Autoparts

Building materials

	FY2019	FY2020	Analysis
	Q1	Q1
			Steady demand by oil refinery,
			petrochemical & power plant
			sectors.
			Demand for insulation materials
			for electronics components
			declined.
			Demand for semiconductor
			market was ahead of schedule.
			The impact of production
			adjustments due to lower global
			automobile demand.
			Effects of extended construction
			periods and delays in
			construction.

Copyright ©2020 NICHIAS Corporation, All Rights Reserved.	3

Financial highlights FY2020 Q1 (1st April, 2020 - 30th June, 2020)

（Unit: Billion yen)

FY2019

FY2020

Q1

H1

H2 Full year

Q1

Q2

H1

H2

Full year

Results

Results

YoY

H1-Q1

Forecast

YoY

Forecast

Forecast

YoY

Net sales

47.4 101.0 107.9

208.9

43.0

△9%

45.5

88.5

△12%

101.5

190.0

△9%

	Operating	4.5	10.0	10.5	20.4	3.8	△15%	3.2	7.0		△30%	10.5	17.5	△14%
	income
	9.4%	9.9%	9.7%	9.8%	8.8%		7.0%	7.9%			10.3%	9.2%
		4.6	10.0	11.6	21.6	3.3	△27%	3.7	7.0		△30%	10.5	17.5	△19%
	Ordinary
	income	9.6%	9.9％	10.7%	10.4%	7.7%		8.1%	7.9%			10.3%	9.2%
	Profit	3.3	7.0	7.6	14.7	1.8	△45%	2.6	4.4		△38%	7.3	11.7	△20%
	Attributable to	7.0%	7.0%	7.1%	7.0%	4.3%		5.7%	5.0%			7.2%	6.2%
	owners of the parent
													(Unit: Yen)
	Basic earnings	49.92 106.14 115.08	221.21	27.58	△45%	38.75	66.33		△38%	110.05	176.38	△20%
	per share
	Dividends		38	38	76				38			38	76
	Dividend		35.8%	33.0%	34.4%				57.3%			34.5%	43.1%
	payout ratio

Copyright ©2020 NICHIAS Corporation, All Rights Reserved.	4

Business Results FY2020 Q1 (1st April, 2020 - 30th June, 2020)

							（Unit: Billion yen)
		FY2019			FY2020
Segments	Q1	H1	H2 Full year	Q1	Q2	H1	H2	Full year
	Results	Results YoY	H1-Q1Forecast YoY	Forecast Forecast YoY

	Energy &	Net sales	13.6	30.9	34.9	65.8	12.5	△8%	16.0	28.5	△8%	33.0	61.5	△7%
	Industrial	incomeOperating	1.3	3.1	4.1	7.2	1.4	9%	1.5	2.9	△5%	3.9	6.8	△5%
	plants	%	9.5%	9.9%	11.8%	10.9%	11.2%		9.4%	10.2%		11.8%	11.1%
	Industrial	Net sales	11.0	22.5	22.7	45.2	10.5	△5%	11.0	21.5	△4%	23.0	44.5	△1%
	Operating	1.6	3.1	2.9	6.0	1.5	△4%	1.4	2.9	△7%	3.2	6.1	2%
	products	income
		%	14.1%	13.8%	12.6%	13.2%	14.2%		12.8%	13.5%		13.9%	13.7%
	Advanced	Net sales	4.8	10.4	11.3	21.6	6.2	29%	4.8	11.0	6%	11.0	22.0	2%
	Operating	0.5	1.4	1.3	2.8	0.9	66%	0.6	1.5	6%	1.3	2.8	2%
	products	income
	%	11.0%	13.7%	11.9%	12.7%	14.2%		12.9%	13.6%		11.8%	12.7%
	Autoparts	Net sales	11.2	22.3	21.4	43.7	7.7	△32%	7.8	15.5	△30%	19.5	35.0	△20%
	incomeOperating	1.0	1.8	1.2	3.0	△0.0	-	△0.1	△0.1	-	1.1	1.0	△66%
		%	8.9%	7.9%	5.7%	6.8%	△0.3%		△1.0%	△0.6%		5.6%	2.9%
	Building	Net sales	6.8	15.0	17.5	32.5	6.2	△9%	5.8	12.0	△20%	15.0	27.0	△17%
	Operating	0.1	0.6	0.9	1.5	0.1	△40%	△0.3	△0.2	-	1.0	0.8	△48%
	materials	income
		%	1.4%	4.1%	5.2%	4.7%	0.9%		△4.4%	△1.7%		6.7%	3.0%
	Total	Net sales	47.4	101.0	107.9	208.9	43.0	△9%	45.5	88.5	△12%	101.5	190.0	△9%
	income	4.5	10.0	10.5	20.4	3.8	△15%	3.2	7.0	△30%	10.5	17.5	△14%
		Operating	9.4%	9.9%	9.7%	9.8%	8.8%		7.0%	7.9%		10.3%	9.2%
		%

Copyright ©2020 NICHIAS Corporation, All Rights Reserved.	5

Investment & Depreciation cost Trends

（Unit: Billion yen)

140

14

120

12

100

10

80

8

60

6

40

4

20

2

0

0

	Energy & Industrial plant		Industrial products
	Autoparts		Building materials

		Depreciation	98
	83			9.8
	8.3
65
6.5
			4.3
		4.7	43
	3.8	4.6	4.0
3.3	28
		2.8

Advanced products

他

Others

12.8 12124.8

108

100

10.0

9.0

5.8	6.3	6.5

4.8

13/3期	14/3期	15/3期	16/3期	17/3期	18/3期	19/3期	20/3期	21/3期
FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020
							予想	予想
								forecast

Copyright ©2020 NICHIAS Corporation, All Rights Reserved.	6

Shareholder's return Trends

（Unit: Yen)

Focused on maintaining stable dividends to shareholders.

Continue to consider share buyback in the light of the balance with growth & investment.

80						76	76
						68
60						60
					52
						42
40			24	26	30	34
	20
20
12

0

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 forecast

The reverse stock split was carried out on a one-for-two basis on 1st October, 2018.

The amount shown on the above graph is based on the assumption that the reverse stock split was carried out at the beginning of the FY2009.

Copyright ©2020 NICHIAS Corporation, All Rights Reserved.	7

Points of Attention

The content of this material only presents information under the conditions stated herein and may not cover all possible conditions. In addition, while utmost care is taken with regard to the accuracy of the content in drafting this material, please understand that none of the information, explanation or recommendations included in this material provides any kind of guarantee. This material includes confidential information, such as knowledge or know-how, etc., of our company. Please refrain from using all or part of this material for purposes other than the purpose of the submission of this material to your company, or from disclosing the same to any third party. We do not guarantee that the method of use, etc. included in this material does not infringe upon any intellectual property of a third party.

Copyright ©2020 NICHIAS Corporation, All Rights Reserved.	8