financial results for fy2019 financial summary · impact of fx, exclusion of subsidiaries from...
TRANSCRIPT
Financial results for FY2019
Financial SummaryFebruary 14, 2020
NIKKISO CO., LTD.Securities code: 6376
Disclaimer
This material contains forward-looking statements about future business performance. These statements by definition involve risks and uncertainties and are not intended to guarantee future performance. Actual results in the future may differ from the
estimates presented in the material herein due to changes in the business environment and other factors.
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
2
Ⅰ. Consolidated Performance
Appendix
Company Information
Ⅱ. Performance by Business Segment
Ⅲ. Financial forecast
2
Financial results for FY2019
Table of Contents
Ⅳ. New Medium-Term Business Plan
Ⅰ. Consolidated Performance
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
Both revenue and operating profit hit a record high. Interest-bearing debt
declined further.
4
Increased by 2,100 million yen (Industrial: +2,700; Medical: △2,100;
Corporate expenses: +1,500)Increase was mainly due to profit improvement (LEWA/Cryogenic Industries Group) and gain on sales of the particle analytical equipment business (+2,400 million yen), despite the negative impact of FX (△600 million yen) and impairment losses in Medical Business (△2,100 million yen).
Interest-bearing debt decreased by 12,300 million yen (117,000 million yen → 104,700 million yen)
Increased by 400 million yen (Industrial: △700; Medical: +1200)△3,900 million yen (Industrial: △3,000; Medical: △900) as a negative impact of FX, but +4,400 million yen as a positive effect of strong sales (Industrial: +2,300; Medical: +2,100)
Decreased by 600 million yen Various factors (e.g. impairment loss is not deductible for income tax purposes) pushed up taxable income, reducing profit for the year.
Free cash flow: 6,800 million yen (year-on-year increase of 5,000million yen)
PL
BS
Revenue
Operating Profit
Profit for the year
CF
Financial results for FY2019
Financial Summary
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 5
FY2018 Jan. 2018 – Dec. 2018
Performanceforecast
Announced inNovember 14, 2019
FY2019Jan. 2019 –Dec. 2019
YoY comparisonComparisonwith forecast
Change Change rate Change rate
Orders 172,492 171,500 167,034 △5,457 △3.2% △2.6%
Revenue 165,326 170,000 165,780 +454 +0.3% △2.5%
Operating profit 10,302 12,000 12,466 +2,163 +21.0% +3.9%
Operating margin 6.2% 7.1% 7.5%
Profit before tax 9,741 11,200 11,381 +1,639 +16.8% +1.6%
Pretax profit margin 5.9% 6.6% 6.9%
Profit for the yearattributable to owners of the company
7,448 6,700 6,813 △634 △8.5% +1.7%
Profit marginattributable to owners of the
company4.5% 3.9% 4.1%
Average foreign exchange rateAgainst the US dollar (Yen) 110.44 109.00 109.03 △1.41 - -
Against the euro (Yen) 130.35 122.00 122.03 △8.32 - -
Financial results for FY2019
Consolidated Performance
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 6
FY2018Jan.2018 – Dec. 2018
FY2019Jan. 2019 – Dec. 2019 Change Remarks
Gross profit 56,977 54,783 △2,193
- Selling, general and administrative expenses 47,123 43,917 △3,205
Impact of FX, exclusion of subsidiaries from
consolidation (particle analytical equipment business),
etc.
- Other income 805 4,354 +3,549Gain on sales of the particle analytical equipment
business (+2,414) and income from a joint venture
agreement in the deep UV-LED business (income
from a licensing agreement: +1,000)
- Other expenses 356 2,753 +2,397 CRRT business-related impairment losses (+2,139)
Operating profit 10,302 12,466 +2,163
- Financial income 528 523 △5
- Financial costs 1,355 1,345 △9
- Share of profit of associates and joint ventures accounted for using the equity method
266 △262 △528
Profit before tax 9,741 11,381 +1,639
Closing rate
- Against the US dollar (Yen)
- Against the euro (Yen) 111.00 109.56 △1.44
Gross profit 127.00 122.54 △4.46
Millions of JPY
Financial results for FY2019
Breakdown of Profit/Loss
Ⅱ. Performance by Business Segment
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 8
FY2018Jan. 2018 -
Dec. 2018
Performanceforecast
Announced inNovember 14, 2019
FY2019Jan. 2019 -Dec. 2019
YoY comparisonComparison
with forecast
ChangeChange
RateChange Rate
Orders 172,492 171,500 167,034 △5,457 △3.2% △2.6%
Industrial Business 111,459 107,200 104,437 △7,022 △6.3% △2.6%
Industrial 82,238 79,900 77,623 △4,615 △5.6% △2.8%
Precision Equipment 12,204 9,200 7,571 △4,632 △38.0% △17.7%
Aerospace 16,884 17,600 17,926 +1,042 +6.2% +1.9%
Medical Business 61,032 64,300 62,597 +1,565 +2.6% △2.6%
Revenue 165,326 170,000 165,780 +454 +0.3% △2.5%
Industrial Business 104,501 105,700 103,734 △767 △0.7% △1.9%
Industrial 76,763 77,900 75,238 △1,524 △2.0% △3.4%
Precision Equipment 10,682 9,700 9,233 △1,448 △13.6% △4.8%
Aerospace 16,909 17,600 17,955 +1,045 +6.2% +2.0%
Medical Business 60,824 64,300 62,046 +1,222 +2.0% △3.5%
Operating ProfitOperating margin
10,3026.2%
12,0007.1%
12,4667.5%
+2,163 +21.0% +3.9%
Industrial BusinessOperating margin
8,1407.8%
10,0009.5%
10,85110.5%
+2,711 +33.3% +8.5%
Medical BusinessOperating margin
5,5829.2%
4,0006.2%
3,4475.6%
△2,134 △38.2% △13.8%
Corporate Expenses △3,419 △2,000 △1,833 +1,586 - -
Millions of JPY
Financial results for FY2019
Performance by Business Segment
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
< Medical>< Aerospace >< Industrial and Precision
Equipment, etc. >
9
FY2018(Jan.2018-Dec.2018)
Orders
172,492
+2,428
△4,902
Simpledecrease
Decreased 5,967 million yen year on year (Simple decrease: △1,800; Impact of FX: △4,166)
Orders Analysis (vs FY2018)
+1,190
Simple
increase
Simpleincrease
FY2019(Jan.2019-Dec.2019)
Orders
167,034△3,162
Impact of FX
Impact of FX
△148
Impact of FX
△863
✓ LEWA received increasingly
more orders, but was affected
negatively by the euro’s
appreciation.
✓ The CI Group saw orders decline
due to differences in the timing of
receiving large orders.
✓ Regarding precision equipment,
the particle analytical equipment
business is excluded from
consolidation. Orders decreased
due to poor electronic
component-related business
performance.
✓ Orders for cascades increased.
✓ Orders for fan case liners
increased.
✓ Strong hemodialysis business
sales (disposables in Japan
and dialysis machines outside
Japan)
✓ Sluggish domestic sales of
hemodialysis machines
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
< Medical >< Aerospace >< Industrial and Precision Equipment, etc. >
10
Simple
increase Impact of FX
△894+2,116
Simple
increase
+1,095 △2,909
+1,194 △148
Revenue Analysis (vs FY2018)
Increased 454 million yen year on year (Simple increase: +4,407; Impact of FX: △3,953)
Millions of JPY
✓ Sales of cascades increased.
✓ Sales of fan case liners
increased.
✓ Strong hemodialysis business
sales (disposables in Japan
and dialysis machines outside
Japan)
✓ Sluggish domestic sales of
hemodialysis machines
✓ Sales at LEWA and the CI Group
increased.
✓ Shipments for existing electronic
component-related orders
increased.
✓ Generated UV-LED development
service revenue.
FY2018(Jan.2018-Dec.2018)
Revenue
165,326Simple
increase
Impact of FX
Impact of FX
FY2019(Jan.2019-Dec.2019)
Revenue
165,780
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
< Medical >< Industrial and PrecisionEquipment, etc. >
< Aerospace >
11
Impact of FX
△1,843
△290
△524△299
Impact of FX
+3,635
Simple
increase
△100
Impact of FX
Operating profit Analysis (vs FY2018)
Increased 2,163 million yen year on year (Simple increase: +1,268; Impact of FX: △690;
Corporate expenses: +1,586)
Millions of JPY
FY2018(Jan.2018-Dec.2018)
Operating profit
10,302
✓ Miyazaki Factory’s depreciation
and other expenses increased.✓ Profit improvement at
LEWA and the CI Group
✓ UV-LED licensing income
✓ Posting of impairment losses
related to the CRRT
(Continuous Renal
Replacement Therapy)
business
✓ Sluggish domestic sales of
hemodialysis machines, and
increases in product
development and other
expenses
Simple
decrease Simple
dereaseDecrease in
corporateexpenses, etc.
+1,586
FY2019(Jan.2019-Dec.2019)
Operating profit
12,466
✓ Gains on sales of
the particle
analytical
equipment
business, etc.
✓ Expenses for
restructuring of
manufacturing
bases, etc.
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 12
39%
6%13%
10%
26%
5%
FY2019
FY2018Jan.2018 – Dec. 2018
FY2019Jan. 2019 – Dec. 2019 YoY comparison
Change Change rate
Orders 82,238 77,623 △4,615 △5.6%
Revenue 76,763 75,238 △1,524 △2.0%
Financial results for FY2019
Industrial Division
✓ LEWA achieved a year-on-year increase in revenue and profit as a result of focusing on sales expansion through
strengthened activities in the downstream sector, including after-sales services, and thanks to the number of
quotation requests in the upstream sector that increased to previous levels.
✓ Received an increasing number of quotation requests and orders for large cryogenic pumps used in LNG-receiving
terminals.Cryogenic Industries Group’s revenue and profit increased year on year thanks to growing sales and decreased
depreciation expenses.
✓ Consequently, the Industrial Division ensured an increase in profit, although its revenue decreased year on year due
to the effect of a weaker euro, etc.
✓ Aim to expand sales by promoting the Group’s sales strategy, strengthen the ability to meet the increasing demand
for LNG by building a cryogenic pump testing facility in Miyazaki, and enhance technological ability and productivity
by building an industrial factory.
1. Overview
2. Consolidated performance 3. Revenue Composition ratio by Product
Geveke
Reciprocating pump
Canned motor pump
Cryogenics pump
CI Group
Others
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
FY2019
13
Q1 Q2Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2017 FY2018
51
105
151
200
58
132
197
247
71
136
206
270 263
46
107
170
236
46
94
153
237
53
108
177
242
260
3 918
28
1 411
22
5 12
2634 33
125 119
101
84
106
133 138
95
115 123 125 124
-200
-150
-100
-50
0
50
100
150
0
50
100
150
200
250
300
350
受注高(左軸) 売上収益(左軸) EBITDA(左軸) 受注残高(右軸)
Financial results for FY2019
Quarterly performance trend of LEWA
Millions of €Order (Left axis) EBITDA (Left axis) Order backlog(Right axis)Reveue (Left axis)
Q4Q3FY2020
(forecast)
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
194
54
87
137
212
51
96
140
180
230
31
65
92
124
28
67
113
162
43
87
127
182
209
4 9 11 141 5 11
175 9 11
16 20
116 114 108 111
138 146 147 150
136
-150
-100
-50
0
50
100
150
0
50
100
150
200
250
受注高(左軸) 売上収益(左軸) EBITDA(左軸) 受注残高(右軸)
14
Q1 Q4Q3Q2Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
53%
33%
14%
44%
34%
21%Revenue Composition ratio by segment
ACD
Cryoquip
Cosmodyne
51%32%
17%
48%35%
16%
FY2019FY2018FY2017FY2020
forecast
FY2017 ※unaudited FY2018 FY2019FY2020
(forecast)
Financial results for FY2019
Quarterly performance trend of CI group
Millions of € Order (Left axis) EBITDA (Left axis) Order backlog(Right axis)Reveue (Left axis)
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 15
発電所関連
電子部品製造
その他
粉体計測
21%
24%40%
14%
FY2019
FY2018Jan.2018 – Dec. 2018
FY2019Jan. 2019 – Dec. 2019 YoY comparison
Change Change rate
Orders 12,204 7,571 △4,632 △38.0%
Revenue 10,682 9,233 △1,448 △13.6%
Financial results for FY2019
Precision Equipment Division
1. Overview
✓ The domestic market for power plant-related equipment remained soft, but quotation requests for water-
conditioning systems from foreign countries, particularly Southeast Asian countries, are increasing.
✓ Orders for electronic component manufacturing equipment decreased due to an electronic component market
slowdown, but both manufacturing and shipments for existing orders were steady. Orders for our equipment are
expected to increase against the backdrop of globally increasing 5G demand.
✓ The Precision Equipment Business reported fewer orders and lower sales revenue as a whole compared with
the same period last year, as it transferred its particle analytical equipment business in July 2019.
2. Consolidated performance 3. Revenue Composition ratio by Product
Power plant-related equipment
Particle analyzers
Electronic component manufacturing equipment Others
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 16
FY2018Jan.2018 – Dec. 2018
FY2019Jan. 2019 – Dec. 2019 YoY comparison
Change Change rate
Orders 16,884 17,926 +1,042 +6.2%
Revenue 16,909 17,955 +1,045 +6.2%
カスケード
翼部品
その他
エンジン部品
ナセル部品
44%
13%
24%
14%
4%
FY2019
Financial results for FY2019
Aerospace Division
1. Overview
2. Consolidated performance 3. Revenue Composition ratio by Product
✓ The number of inquiries that the Company received increased steadily as commercial aircraft demand mainly for small
planes (single-aisle planes) continuously increased, primarily in Southeast Asia. There were no major effects on the
shipment of products for Boeing 737 MAX during the current fiscal year.
✓ Revenue increased year on year as the shipment of our main products (cascades and engine parts) increased.
✓ Profit decreased due to increased expenses, including depreciation expenses, incurred in connection with the launch of
the Miyazaki Factory. The initial shipment of A320neo PW cascades, which were newly developed at the Miyazaki
Factory, was sent in October. Continue to promote the development of production/new technologies.
✓ Discontinued production in Shizuoka in December, and entirely transferred it to another factory. Continue to integrate
and optimize production bases and systems, aiming to improve profitability by ensuring stable operations at the
Miyazaki Factory and using the second factory in Vietnam.
Cascade
Nacelle parts
Wing parts
Jet engine parts
Others
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 17
FY2018Jan.2018 – Dec. 2018
FY2019Jan. 2019 – Dec. 2019 YoY comparison
Change Change rate
Orders 61,032 62,597 +1,565 +2.6%
Revenue 60,824 62,046 +1,222 +2.0%
15%
12%
32%3%
12%
8%
19%
FY2019
Financial results for FY2019
Medical Division
1. Overview
2. Consolidated performance 3. Revenue Composition ratio by Product
✓ Domestic sales of hemodialysis machines remained relatively weak mainly due to the effect of longer replacement
cycles. Quotation requests for new machines that were launched in the 3rd quarter increased as the safety of
medical treatment, convenience, and economic efficiency were highly evaluated.
✓ Domestic sales of blood tubing lines, powder-type dialysate, and other disposables rose. As for overseas markets,
sales of hemodialysis machines remained strong in China and Europe.
✓ Aim to penetrate the domestic market with new hemodialysis machines, increase the number of users, and
strengthen the service system. As for overseas markets, promote sales expansion in Europe, Southeast Asia, China and the U.S. where the functions of the Company’s machines are highly evaluated.
✓ Posted impairment losses due to worsened performance in the CRRT (Continuous Renal Replacement Therapy)
business. The Medical Business saw its revenue increase but its profit decrease year on year as a whole.
Millions of JPY (Japan) Dialysis machines
(Overseas) Dialysis machines
(Japan) Disposable
(Overseas) Disposable
Maintenance
CRRT
Others
Ⅲ. Financial forecast
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 19
Revenue
OperatingProfit
Financial results for FY2019
Financial Forecast Summary
The Company’s main business continues to grow, although global circumstances remain
uncertain.
Increasing investment and costs associated with the strengthening of our business foundation.
△1,200 million yen year on year (Industrial: △600; Medical: +2,000;
Company: △2,800)
<Industrial>
Costs will increase in connection with the strengthening of the business foundation (e.g. construction of a
new factory in Miyazaki).
<Medical>
Medical’s profit will increase as CRRT business-related impairment losses are not incurred (△2,100 million
yen for the previous year), although other expenses (e.g. R&D expenses and those incurred to expand
overseas sales) are expected to increase.
<Company>
No gain on sales of the particle analytical equipment business (+2,400 million yen for the previous year),
while costs of restructuring domestic bases are increasing.
+8,200 million yen year on year (Industrial: +4,200; Medical: +3,900)
<Industrial>
Revenues in Industrial and Aerospace will increase thanks to market growth. Precision Equipment will see
decreased revenue, affected by the sales of certain business operations in the previous year and
decreasing electronic component-related orders.
<Medical>
Medical will increase its revenue by penetrating domestic and overseas markets with new hemodialysis
machines and by increasing users.
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 20
FY2019Actual record
FY2020
Performance forecast
YoY comparison
Change Change rate
Orders 167,034 177,000 +9,965 +6.0%
Revenue 165,780 174,000 +8,219 +5.0%
Operating profit 12,466 11,000 △1,466 △11.8%
Operating margin 7.5% 6.3%
Profit before tax 11,381 10,000 △1,381 △12.1%
Pretax profit margin 6.9% 5.7%
attributable to owners of the company
Profit for the year 6,813 6,000 △813 △11.9%
Profit margin attributable to owners of the company
4.1% 3.4%
Average/ForecastAgainst the US dollar (Yen)
Against the euro (Yen)
Forex sensitivity for FY2019 (When
yen was depreciated by 1 yen)
US dollar (Yen)
Euro (Yen)
109.03122.03
109.00120.00
△0.03△2.03
Orders Revenue +460 million yen Operating profit +80 million yenRevenue +400 million yen Operating profit +60 million yen
Financial forecast for FY2020
Performance by Business Segment
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 21
FY2019Actual record
FY2020
Performance forecast
YoY comparison
Change Change rate
Orders 167,034 177,000 +9,965 +6.0%
Industrial Business 104,437 111,000 +6,562 +6.3%
Industrial 77,623 85,000 +7,376 +9.5%
Precision Equipment 7,571 6,500 △1,071 △14.2%
Aerospace 17,926 18,500 +573 +3.2%
Medical Business 62,597 66,000 +3,402 +5.4%
Revenue 165,780 174,000 +8,219 +5.0%
Industrial Business 103,734 108,000 +4,265 +4.1%
Industrial 75,238 82,000 +6,761 +9.0%
Precision Equipment 9,233 6,500 △2,733 △29.6%
Aerospace 17,955 18,500 +544 +3.0%
Medical Business 62,046 66,000 +3,953 +6.4%
Operating ProfitOperating margin
12,4667.5%
11,0006.3%
△1,466 △11.8%
Industrial BusinessOperating margin
10,85110.5%
10,2009.4%
△651 △6.0%
Medical BusinessOperating margin
3,4475.6%
5,5008.3%
+2,052 +59.5%
Corporate Expenses △1,833 △4,700 △2,866
Financial forecast for FY2019
Performance by Business Segment
Millions of JPY
Ⅳ. New Medium-Term Business Plan
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
Turn our strategies into achievements
23
Basic strategies
1. Re-establish Nikkiso as a technology
expert
2. Strengthen our management base and
profitability for further growth
Main achievements
We have identified promising business areas, reorganized our business structure, and
clarified our future growth trajectory.
• Have set the LNG-related equipment market, overseas hemodialysis market, and aerospace
component market as growth areas, and focused more on allocating management resources
• Have discontinued our business operations in areas that are not deemed promising and
those that are unprofitable or relatively irrelevant to our main business
Review of the previous Medium-Term Business Plan “Nikkiso 2020”
New Medium-Term Business Plan “Nikkiso 2025” FY2020-FY2025
Basic strategies2. Build an organization enabling globally integrated business
promotion
1. Enhance our technological ability and production system
Strengthen collaboration among group companies and manufacturing
bases, and build regional production, sales, and technology frameworks.
Aim to enhance production efficiency and capacity in Japan, create an
environment enabling technology and development teams to
demonstrate their abilities, and cultivate higher level and efficient
production ability and human resources.
Nikkiso’s Medium-Term Business Plan “Nikkiso 2020” had been in effect from 2016 to 2019 and, during the 4-year period, we
engaged in various challenging endeavors to achieve our future dreams.
Now that we have clarified our future growth trajectory by identifying promising business areas and reorganizing our business
structure, we consider it necessary to take action based on new goals reflecting external environmental changes and global
and domestic issues we identify. Therefore, we have prepared our new Medium-Term Business Plan “Nikkiso 2025” covering
the period between 2020 and 2025.
New Medium-Term Business Plan “Nikkiso 2025” for FY2020-FY2025
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 24
84.4 88.5 95.0110.0
17.9 18.530.0
40.062.066.0
75.0
100.0
Revenue of Medical Division Revenue of Aerospace Division
Revenue of Industrial Division Operating Profit
FY2019 FY2020 FY2022 FY2025
Strengthen business bases
Growth and leap forward
New Medium-Term Business Plan 「Nikkiso 2025」<FY2020-FY2025>
Phase1
Phase2
FY2020-FY2022
FY2023-FY2025 250.0billion
200.0billion
165.7billion174.0billion
12.4billion 11.0billion14.0billion
20.0billion
Medium-Term Business Plan NIKKISO 2020
New Medium-Term Business Plan “Nikkiso 2025” for FY2020-FY2025
Strengthen our business bases by categorizing the first 3 years of the 6-year plan as Phase 1, and
then make our existing investments successful and turn each strategy into an achievement in the
latter half of the plan (Phase 2).
Appendix
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
29,522
62,910
97,199
140,912
34,492
75,578
115,437
165,326
37,480
78,956
121,193
165,780
1,238
2,441
4,972
8,718
864
3,168
6,308
10,302
2,154
3,558
9,511
12,466
0
2,500
5,000
7,500
10,000
12,500
15,000
FY2017
Average foreign exchange rate
1$ = 112.16Yen1€ = 126.70Yen
Average foreign exchange rate
1$ = 110.44Yen1€ = 130.35Yen
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
26
FY2018 FY2019
Average foreign exchange rate
1$ = 109.03Yen1€ = 122.03Yen
Q3 Q4
Millions of JPY
Revenue Operating profit
Financial results for FY2019
Quarterly results trend
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 27
As of December 2018 As of December 2019
AmountComposition
ratio AmountComposition
ratio Change
Total assets 249,788 100.0% 252,984 100.0% +3,196
Total current assets 121,342 48.6% 113,020 44.7% △8,321
Cash and cash equivalents 29,269 11.7% 20,303 8.0% △8,965
Trade and other receivables 54,077 21.6% 53,256 21.1% △820
Inventories 33,297 13.3% 35,523 14.0% +2,226
Total non-current assets 128,446 51.4% 139,964 55.3% +11,517
Property, plant and equipment 44,920 18.0% 41,849 16.5% △3,070
Goodwill and Intangible assets 64,255 25.7% 61,105 24.2% △3,150
Total liabilities 171,450 68.6% 169,571 67.0% △1,878
Trade and other payables 27,380 11.0% 28,231 11.2% +851
Bonds and borrowings 117,052 46.9% 104,731 41.4% △12,321
Total equity 78,338 31.4% 83,413 33.0% +5,074
Financial results for FY2019
Quarterly results trend
Millions of JPY
※ Nikkiso group applied IFRS16 “Leases” from the beginning of current fiscal year. Right-of-use assets and lease liabilities are recognized at the lease
commencement date.
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 28
FY2018(Jan.2018-Dec.2018)
FY2019(Jan.2019-Dec.2019)
Change
Cash flows from operating activities 14,076 11,996 2,079
Profit before tax 9,741 11,381 +1,639
Depreciation and amortization 6,335 8,994 +2,659
Increase(decrease) of working capital(trade receivables/payables and inventories)
△2,983 △32
Cash flows from investment activities 12,218 +7,073
Purchase of property, plant and equipment 11,959 +6,260
Payments for acquisition of subsidiaries △909 △1,520 △611
Free cash flows 1,857 6,851 +4,994
Cash flows from financing activities △5,771 △15,534 △9,763
increase(decrease) in borrowings △4,346 △11,071 △6,724
Dividends paid 1,139 △285
Cash and cash equivalents at the end of year 29,269 20,303 △8,965
Consolidated Statement of Financial Position
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 29
MedicalAerospacePrecision Equipment
56%37%
3% 2% 1%
日本
アジア
北米
欧州
その他
18%
6%
72%
4%
70%
15%
1%12%
2%
20%
30%
40%
50%
60%
70%
0
20,000
40,000
60,000
80,000
100,000
120,000
09/3 10/3 11/3 12/3 13/3 14/3 15/3 15/12 16/12 17/12 18/12 19/12
アジア 北米
欧州 その他
海外売上収益比率(右軸)
FY2019
Nikkiso group total Revenue trend by overseas region
FY2019 FY2019
Overseas revenue ratio
64%
(9 ヶ月)
Industrial
11%
35%
21%
29%
4%
FY2019
Japan
36%
Asia25%
North America
18%
Europe18%
Other3%
FY2019
Millions of JPYAsia North AmericaEurope OtherOverseas revenue ratio (right axis)
Japan
Asia
North America
Europe
Other
Revenue Composition Ratio by Region
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 30
FY2020
Performance forecast
Against the US dollar Against the euro
RevenueOperating
profitRevenue
Operating
profit
Industrial Division/
Precision Equipment
Division+310 +20 +320 +30
Aerospace Division +140 +90 +0 +0
Medical Division +10 △30 +80 +40
Total +460 +80 +400 +70
Average/Forecast (Yen) 109.00 120.00
※When yen was depreciated by 1 yen
Millions of JPY
Breakdown of forex sensitivity
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 31
FY2016 FY2017 FY2018 FY2019
Earnings per share (Basic) 66.08yen 72.82yen 104.63yen 95.68yen
Return on equity (ROE) 7.2% 7.3% 9.8% 8.6%
Return on asset (ROA) 3.8% 3.9% 3.9% 4.5%
Operating margin 6.2% 6.2% 6.2% 7.5%
Equity ratio 37.4% 30.7% 30.7% 32.2%
Debt/equity ratio 1.05times 1.63times 1.53times 1.28times
FY2016 FY2017 FY2018 FY2019
Capital expenditure 7,635 7,508 12,869 7,220
Research and development expenditure 1,679 2,435 2,387 2,346
Depreciation and amortization 4,766 5,246 6,335 8,994
Financial data
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
32
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
FY201711,261 14,331 14,132 19,103
overseas 9,487 12,241 12,425 17,113
FY201820,066 19,760 18,808 23,604
overseas 18,316 17,659 16,974 20,488
FY201921,676 19,727 18,147 18,075
overseas 20,422 16,050 16,819 15,939
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
FY201729,727 30,582 39,461 38,198
overseas 26,570 27,174 36,036 34,834
FY201843,058 44,457 43,496 43,674
overseas 40,088 41,298 40,305 39,608
FY201947,813 49,402 48,938 46,058
overseas 44,435 44,282 44,900 41,935
32
Quarterly orders/order backlog trend of Industrial Division
Orders
Order backlog
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 33
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Industrial Division
FY201710,522 13,476 15,274 20,443
overseas 8,321 12,502 13,393 16,986
FY201815,206 18,361 19,770 23,426
overseas 13,247 16,289 17,809 21,203
FY201917,536 18,138 18,610 20,953
overseas 15,595 16,203 16,567 18,535
Precision Equipment Division
FY20172,421 2,377 2,070 2,975
overseas 745 885 821 775
FY20182,516 2,640 2,187 3,339
overseas 604 794 739 1,177
FY20192,518 2,947 1,589 2,177
overseas 896 1,113 662 1,394
Aerospace Division
FY20173,578 3,991 3,779 4,202
overseas 2,920 3,606 3,306 3,865
FY20183,792 4,213 3,924 4,980
overseas 3,301 3,648 3,114 4,240
FY20194,168 4,431 4,656 4,698
overseas 3,389 3,704 3,803 3,874
Medical Division
FY201712,964 13,521 13,114 16,085
overseas 3,834 3,959 4,623 3,671
FY201812,936 15,855 13,943 18,090
overseas 4,148 4,586 4,682 5,335
FY201913,175 15,861 16,681 16,327
overseas 4,193 4,703 4,420 5,255
Quarterly revenue trend
Millions of JPY
Company Information
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 35
Consolidated Revenue
130.0
140.9
165.3
8.1
8.7
10.3
12.4
0
1,500
16/12 17/12 18/12 19/12
Revenue by SegmentTrend in Revenue/Operating Profit
Industrial business 63%
Medical business37%
Industrial Division
45%Medical Division
37%
Aerospace Division
11%
FY2019
Precision Equipment Division
6%
72.378.0
83.190.1
103.6
121.5129.2
110.2
132.8
4.7
5.65.3
6.5
7.4
9.4
6.1
3.8
4.8
0
1,500
09/3 10/3 11/3 12/3 13/3 14/3 15/3 15/12 16/12
Net sales Operating income
JGAAP IFRS
売上収益 営業利益
165.7
Revenue Operating Profit ( billion yen )
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 36
Performance trend of Industrial Business
Acquired the LEWA Group
Acquired Geveke B.V.
Acquired the Cryogenic Industries group
33,663 43,076
52,393 54,663
69,307
79,239
69,536 75,183
85,406
111,459
103,927
111,000
37,233
42,123
47,490
55,176
68,588
74,960
68,625
75,593
85,228
104,501 103,734 108,000
3,444 2,760 4,662 3,770 5,102 4,375 3,668
5,932 7,539 8,140 10,851 10,200
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
20,000
40,000
60,000
80,000
100,000
120,000
2010/03 2011/03 2012/03 2013/03 2014/03 2015/03 2015/12 2016/12 2017/12 2018/12 2019/12 2020/12
受注高 売上収益 セグメント利益 セグメント利益率
Miyazaki Nikkiso Aerospace factory
(IFRS)(IFRS)(IFRS)(9months) (forecast)(IFRS)
Order (Left axis) Revenue (Left axis) Operating profit (Left axis) Operating margin (Right axis)
Higashimurayama Aerospace factory
Aerospace product expansion
Transferred production from Shizuoka to Kanazawa
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved.
Performance trend of LEWA
132
195 194204
220236 232
200
247270
129148
189
217 217 224 219236 237 242
13 1727 30 31 28 21 28 22
34
0
20
40
60
80
100
120
0
50
100
150
200
250
300
10 11 12 13 14 15 16 17 18 19
受注高(左軸) 売上収益(左軸) EBITDA(左軸) 原油価格(右軸)
36%
41%
23%
FY2010
34%
36%
6%
24%
FY2015
25%
38%
10%
28%
FY2019
37
Millions of € $/barrel
Order (Left axis) Revenue (Left axis) EBITDA (Left axis) Crude oil price (Right axis)
(Source)Crude oil price:The World Bank Group「Commodity Markets Outlook」
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 38
Performance trend of Medical Business
(IFRS)(IFRS)(IFRS)(9months)
40,786 41,019 42,646
48,493 52,960
54,295
41,592
54,451 55,684
60,824 62,046
66,000
5,226 5,598 5,224 6,962 7,845
5,243 3,041
5,209 3,950
5,582 3,447
5,500
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
10000
20000
30000
40000
50000
60000
70000
2010/03 2011/03 2012/03 2013/03 2014/03 2015/03 2015/12 2016/12 2017/12 2018/12 2019/12 2020/12
売上収益 セグメント利益 セグメント利益率
(forecast)(IFRS)
Full-scale sales of DCS-100NX, a multipurpose dialysis monitoring device (from January 2012)
Sales of DBB-EXA, a dialysis device for personal use (in overseas markets) (from 2015)
Higher demand for online HDF
Consumption tax hike in April 2014 (to 8% from 5%)
Acquired the CRRT business
Transferred production from Shizuoka to Kanazawa
Full-scale sales of DCS-200Si, a multipurpose dialysis monitoring device (from July 2019)
Revenue (Left axis) Operating profit (Left axis) Operating margin (Right axis)
Millions of JPY
Copyright © 2020 NIKKISO CO., LTD. All rights reserved. 39
Company is established for the purpose of import and sales of reciprocating metering pumps.
Develops a water conditioning system for power plants and begins production and sales of systems.
Introduces Japan’s first leak-free canned motor pump technology and begins production and sales of pumps.
Completes construction of HigashimurayamaPlant.
Listing on the second section of the Tokyo Stock Exchange.
Begins import and sales of artificial dialysis machines for the first time in Japan.
Completes Japan’s first hemodialysis machine and begins production and sales of machines.
Listing on the first section of the Tokyo Stock Exchange.
Completes construction of Shizuoka Plant.
Begins production and sales of dialyzers for hemodialysis.
Begins production and sales of cascades made of carbon fiber reinforced plastic as components for commercial aircraft.
Begins manufacturing and sales of cryogenic pumps.
Completes construction ofKanazawa Plant.
Begins production of bloodtubing lines for hemodialysisin Vietnam.
Acquires the LEWA Group of Germany.
Establishes a joint venture with the China-based Weigao for the manufacture and maintenance of dialysis machine
Medical Division
Aerospace Division
Industrial Division
Acquires Geveke B.V. of the Netherland
Acquires CRRT business of Baxter International Inc.
Acquires Cryogenic pump business of Atlas Copco.
Acquires the Cryogenic Industries Group of U.S.A.
69 71 74 75 83 87 95 01 09 1053 54 56 60 61 67 13 15 1714 18
Completes construction ofAerospace factory at theMiyazaki Nikkiso, and Vietnam No.2 factory.
08
Establishes a Nikkiso Vietnam,Inc.
19
Establishes the Deep UV-LED Business Joint-Venture Company with Formosa Plastic Group.
Footsteps of the NIKKISO Group
History