SIIX CORPORATION Medium-term Management Plan 2024-2026
February 2024
SIIX Corporation
INDEX
⚫Review of the 2021-2023medium-term management plan
⚫Actions to achieve management with an awareness of cost of capital and share value
⚫New medium-term management plan for 2024-2026
- Vision and performance targets
- 4 challenges
- Target indicators
- Strengthening governance
Copyright © 2024 SIIX Corporation All rights reserved. | 1 |
Review of the 2021-2023medium-term management plan
Copyright © 2024 SIIX Corporation All rights reserved. | 2 |
Review of the 2021-2023medium-term management plan
(JPY in billions) 400.0
Sales | Mid-term plan |
Operation Profit | Dotted line…Plan | |||||
350.0 | Solid line…Actual | |||||
309.8 | ||||||
300.0 | 277.0 | |||||
250.0 | 242.8 | 12.3 | ||||
226.8 | ||||||
223.0 | ||||||
200.0 | 8.6 | 181.6 | 8.9 | |||
150.0 | ||||||
5.5 | 5.0 | |||||
4.5 | ||||||
100.0 | ||||||
COVID-19 | ||||||
50.0 | ||||||
Semiconductor | ||||||
shortage | ||||||
0.0 | ||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
20.0 Against the 2021-2023Medium-Term Management Plan consolidated sales of JPY 250 billion and consolidated operating
18.0 income of JPY 10.5 billion,
16.0 | In FY2023, consolidated sales were 309.8 billion yen and |
consolidated operating income was 12.3 billion yen, achieving the | |
14.0 | numerical targets. |
Compared to FY2020, sales increased 1.7 times, operating income |
12.0 increased 2.8 times, and record income was achieved in terms of operating income, ordinary income and net income.
10.0 | Summary of the 3 years, challenges for the future |
8.0 • Operating margins were affected by the external environment, including the pandemic of COVID-19, the deteriorating semiconductor
6.0 | procurement environment and rising transportation costs, and were not |
achieved. | |
4.0 • Despite growth in automotive-related business, we struggled to launch
new projects. The sales ratio of non-Japanese companies was also | |
2.0 | weak. |
• Inventory reduction did not proceed enough. Inventory turnover was 76- | |
0.0 | 86 days. Despite a deteriorating procurement environment, targets were |
significantly underachieved. Also, it led to an increase in interest-bearing | |
debt and a deterioration in CCC. |
Copyright © 2024 SIIX Corporation All rights reserved. | 3 |
Review of the 2021-2023medium-term management plan
Target | KPI | Result at the end of 2023 | ||
Slow growth in business with large non-Japanese | ||||
Expansion of non-Japanese ratio | Sale of Non-Japanese ratio 25% | 18.0% | customers due to delays in launching new projects, | |
reduced requirements, etc. | ||||
Expanding | ||||
business with | Strengthen Reinforce alliances with | 5.3 bil yen | Targets achieved through deals with iWOW, SIIX- | |
major global | JDM sales 5 bil yen | ORIENT etc., we are continuing sales activities | ||
technology partner | (FY2021) | |||
companies | toward collaboration in the field of printed electronics. | |||
Customer development in the | Sales in medical equipment | |||
sector | 1.6 bil yen | Little progress in developing customers | ||
medical field | ||||
5 bil yen | ||||
Non-commodity sector sales ratio | Almost achieved due to growth in automotive. | |||
82.1% | Industrial equipment also grew, with power tools and | |||
85% | ||||
Contributing to a | in-flight AV equipment contributing. | |||
Expansion of CASE-related | ||||
decarbonized | ||||
businesses | ||||
society | CASE-related sales 35 bil yen | 28.8 bil yen | Car multimedia and others did not reach the plan. | |
Expansion of IoT, labour-saving, | ||||
through our | ||||
energy-saving etc. | ||||
business | ||||
Achieved due to power tool. | ||||
Battery-related sales 10 bil yen | 19.0 bil yen | New projects are being acquired in the automotive | ||
battery sector. | ||||
Copyright © 2024 SIIX Corporation All rights reserved. | 4 |
Review of the 2021-2023medium-term management plan
Target | KPI | Result at the end of 2023 | |||
• Solar panels have been installed at all 3 plants in China, | |||||
Mexico and Indonesia (Karawang). Solar panels will also | |||||
Promotion of solar panel | be used in Thailand and Indonesia (Batam) in the future. | ||||
installation | SCOPE1+2 | • 100% of renewable energy use has been achieved at 3 | |||
Reduction of CO2 emissions | sites in Europe and a plant in Japan (FY2022). | ||||
99% reduction | |||||
Reduction of emissions | • SCOPE2 emissions have been reduced by 96% compared | ||||
per sales | to 2021 through IREC purchases (FY2022). | ||||
ESG | • CO2 emissions per sales / million yen | ||||
2020: 0.34t | 2023(estimated): 0t (Scope 2) | ||||
Increase in local executives ratio | Local executives ratio | 79.2% | The appointment of local executives has progressed. | ||
80% | 2020: 78.9% | 2023: 79.2% | |||
Female executives ratio | Promotion of female to the board of directors and executive | ||||
Increase in female executives ratio | 32.1% | officers. | |||
50% | |||||
2020: 31.1% | 2023: 32.1% | ||||
Copyright © 2024 SIIX Corporation All rights reserved. | 5 |
Review of the 2021-2023medium-term management plan
- Consolidated Sales by Market Sector (FY2020 actual vs FY2023 actual)
Automotive | Industrial | Home Appliance | Information | Others |
9.5
16.3 5%
9%
22.9
13%Actual
FY2020 | |
181.6 bil yen | 98.4 |
54% |
34.5 | Non-commodity |
19% | |
ratio 73% | |
24.3 | 4.6 | ||||
Power tool and | 1% | ||||
8% | |||||
Inflight AV equipment | |||||
26.5 | |||||
performed well. | |||||
9% | |||||
Actual | |||||
61.6 | FY2023 | ||||
20% | 309.8 bil yen |
Non-commodity
ratio 82%
Steady growth in CASE-related equipment.
192.7 62%
Copyright © 2024 SIIX Corporation All rights reserved. | 6 |
Actions to achieve management with an awareness of cost of capital and
share value
Narrow
Equity
Spread
Net income (％) | |
2.0 | 2.6 |
1.7 | |
Current situation, evaluation
• After pandemic of COVID-19, net |
income has been on a recovery trend |
PBR | |||
below x1 | |||
PBR (x) | |||
1.30 | 1.02 | ||
0.79 | 0.77 | ||
2020 | 2021 | 2022 | 2023 |
ROE (%) | |||
7.5 | 6.6 | 9.9 | |
3.0 | |||
2020 2021 2022 2023 |
Low market appreciation of growth potential
PER (x) | ||
42.3 | ||
14.7 | 12.7 | 8.5 |
2020 2021 2022 2023 |
0.9 | |||
2020 | 2021 | 2022 | 2023 |
Total asset turnover | |||
1.4 | 1.5 | 1.5 | |
1.3 | |||
2020 | 2021 | 2022 | 2023 |
Financial Leverage | |||
(x) | |||
2.53 | 2.58 | 2.63 | 2.54 |
2020 | 2021 | 2022 | 2023 |
and achieved record highs in |
FY12/2023. |
• On the other hand, ROE is higher than |
our perceived cost of capital, but the |
equity spread is narrow. |
• Despite record profits and other |
financial performance growth, we |
haven't been enough appreciated by |
the market yet. |
Policy, Goals
- Improvement of profit ratio
Increase OP% by cost reductions, etc. Reduction of debt and interest expense.
- Strengthen Shareholder
Returns
Dividends have been increased for the past 17 consecutive years. We need emphasize capital efficiency and shareholder returns.
- Proactive IR activity
Proactive IR activity with investors based on disclosure
Steady execution of growth strategies
Strengthen
capital efficiency
and shareholder returns
Dividend increased for the 2H of 2023 16 yen 28 yen
Copyright © 2024 SIIX Corporation All rights reserved.
7
New medium-term management plan 2024-2026
Copyright © 2024 SIIX Corporation All rights reserved. | 8 |
New Mid-term VISION
SIIX VISION 2026
Honestly, fairly and accurately
Providing the best service in the middle of the fairway
SIIX aims to deepen its relationships with all stakeholders with sincerity and integrity,
and to grow and develop together. In order to achieve this, we respect the expectations and demands of our stakeholders, based on the basic principles of trust, transparency
and fairness, We will accumulate the right actions every day to fulfil those needs.
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Siix Corporation published this content on 20 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 07:20:04 UTC.
