NIKKISO CO., LTD. - Financial results for FY2019 Q2 ... › ir › files › f68525a3225ded6d6e2a5ac...Financial results for FY2019 Q2 Financial Summary Aug. 21, 2019 NIKKISO CO.,

Financial results for FY2019 Q2

Financial SummaryAug. 21, 2019

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 © 2019 NIKKISO CO., LTD. All rights reserved.

2

Ⅰ. Consolidated Performance

Appendix

Company Information

Ⅱ. Performance by Business Segment

Ⅲ. Financial forecast

2


Table of Contents

Ⅳ. Reorganization of Domestic Manufacturing Bases

Ⅴ. Current status and future prospects of CI group

Ⅰ. Consolidated Performance

Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 4

FY2018 Q2 Jan.2018 – Jun.2018

FY2019 Q2Jan.2019 – Jun.2019

YoY comparison

Change Change rate

Orders 84,730 85,908 +1,178 +1.4%

Revenue 75,578 78,956 +3,378 +4.5%

Operating profit 3,168 3,558 +390 +12.3%

Operating margin 4.2% 4.5%

Profit before tax 2,762 2,999 +236 +8.6%

Pretax profit margin 3.7% 3.8%

Profit for the yearattributable to owners of the company

2,033 1,905 △128 △6.3%

Profit marginattributable to owners of the company

2.7% 2.4%

Average foreign exchange rate

Against the US dollar (Yen) 108.67 110.06 +1.39 -

Against the euro (Yen) 131.55 124.32 △7.23 -


Consolidated Performance

Millions of JPY


FY2018 Q2

Jan.2018 – Jun. 2018

FY2019 Q2

Jan. 2019 – Jun. 2019Change Remarks

Gross profit 25,772 25,663 △109

- Selling, general and administrative expenses △22,967 △22,366 +601

Decrease in SG&A expenses at overseas subsidiaries

- Other income 430 307 △122

- Other expenses △67 △45 +21

Operating profit 3,168 3,558 +390

- Financial income 342 385 +42

- Financial costs △864 △1,058 △193Increase in foreign exchange loss due to the appreciation of the yen

- Share of profit of associates and joint ventures accounted for using the equity method

116 112 △3

Profit before tax 2,762 2,999 +236

Exchange rate for the conversion of the performance of overseas subsidiaries

- Against the US dollar (Yen) 108.67 110.06 +1.39

- Against the euro (Yen) 131.55 124.32 △7.23


Breakdown of Profit/Loss

Millions of JPY


FY2018 FY2019(forecast)


Quarterly results trend

Millions of JPY


1$ = 112.16Yen1€ = 126.70Yen


1$ = 110.44Yen1€ = 130.35Yen

Foreign exchange rate (revised forecast)

1$ = 109.00Yen1€ = 122.00Yen

FY2017

29,522

62,910

97,199

140,912

34,492

75,578

115,437

165,326

37,480

78,956

171,500

1,238

2,441

4,972

8,718

864

3,168

6,308

10,302

2,154

3,558

12,000

Revenue Operating profit

Q1 Q2 Q3 Q4 Q1 Q2 Q4 (revised forecast)Q1 Q2 Q3 Q4

Ⅱ. Performance by Business Segment



Performance by Business Segment

FY2018 Q2Jan.2018 - Jun.2018

FY2019 Q2Jan.2019 - Jun.2019

YoY comparison

Change Change rate

IndustrialBusiness

Orders 54,598 55,780 ＋1,182 ＋2.2%

Revenue 46,786 49,919 +3,132 +6.7%

Operating profit 2,666 3,4536.9%

+787 +29.5%

Operating margin 5.7%

Industrial DivisionOrders 39,826 41,403 +1,576 +4.0%

Revenue 33,567 35,674 +2,107 +6.3%

Precision Equipment Division

Orders 6,705 5,623 △1,082 △16.1%

Revenue 5,156 5,466 +309 +6.0%

Aerospace DivisionOrders 8,016 8,588 +572 +7.1%

Revenue 8,005 8,600 +595 +7.4%

MedicalBusiness

Orders 30,132 30,128 △3 △0.0%

Revenue 28,791 29,037 +246 +0.9%

Operating profit 2,164 1,9126.6%

△251 △11.6%

Operating margin 7.5%

Corporate expenses, etc. Operating profit △1,663 △1,808 △144 -

Millions of JPY


38%

6%15%

10%

27%

5%

9

FY2019Q2

FY2018 Q2Jan.2018 – Jun. 2018

FY2019 Q2Jan. 2019 – Jun. 2019

YoY comparison

Change Change rate

Orders 39,826 41,403 +1,576 +4.0%

Revenue 33,567 35,674 +2,107 +6.3%

Geveke


Industrial Division

1. Overview

2. Consolidated performance 3. Revenue Composition ratio by Product

Millions of JPY

Reciprocating pump

Canned motor pump

Cryogenics pump

CI Group

Others

✓ At the current oil price level, investments have resumed in the oil and gas mining markets (upstream

sector) and the petrochemical market (downstream sector). LEWA grew its after-sales service

business, achieving higher revenues and profits.

✓ Orders for large cryogenic pumps increased along with global market growth (e.g., an increase in

LNG-receiving terminals). Aim to strengthen manufacturing, technological development and sales by

integrating business operations of U.S. subsidiaries (NCI*1 and CI Group*2).

✓ Decided to restructure domestic manufacturing bases. Aim to increase sales in the canned motor

pump and cryogenic pump businesses and improve profitability mainly through the enhancement of

manufacturing capabilities by integrating domestic manufacturing functions into the Miyazaki Factory.

※1：Nikkiso Cryo, Inc. ※2：Cryogenic Industries Group



Quarterly performance trend of LEWA

Millions of €

FY2019

Q1 Q4Q3Q2Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY2017 FY2018 2019計画

51

105

151

200

58

132

197

247

71

136

250

46

107

170

236

46

94

153

237

53

108

243

3 918

28

1 411

22

5 12

27

125 119

101

84

106

133 138

95

115 123

-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）Reveue (Left axis)Order (Left axis) EBITDA (Left axis) Order backlog(Right axis)

(forecast)


194

54

87

137

212

51

96

198

31

65

92

124

28

67

113

162

43

87

188

4 9 11 141 5 11

175 9

22

116 114 108

111

138 146

147

-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）

11

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

53%

33%

14%

44%

34%

21%Revenue Composition

ratio by segment

ACD

Cryoquip

Cosmodyne

47%

33%

20%

48%38%

14%

FY2019

Q2FY2018FY2017

FY2019

forecast

FY2017※unaudited FY2018 2019(forecast)


Quarterly performance trend of CI group

Order (Left axis) Reveue (Left axis) EBITDA (Left axis)Millions of ＄

Q1 Q4Q3Q2

FY2019

Order backlog(Right axis)


15%

41%

33%

10%

12

FY2019Q2

FY2018 Q2Jan.2018 – Jun. 2018

FY2019 Q2Jan. 2019 – Jun. 2019

YoY comparison

Change Change rate

Orders 6,705 5,623 △1,082 △16.1%

Revenue 5,156 5,466 +309 +6.0%



1. Overview


Millions of JPY

Water conditioning system

Particle analyzers

Fine ceramics

Others

✓ The electric power business targeting power plants remained weak due to soft domestic market

conditions.

✓ The business targeting manufacturers of electronic components increased its revenue and

profit thanks to the steady handling of existing manufacturing orders despite a decrease in

orders affected by Apple’s shock announcement and slowing capital investment caused by the

U.S.–China trade frictions.

✓ The particle analytical equipment business had been handled by consolidated subsidiaries,

MicrotracBEL Corp. and Microtrac, Inc. However, the Company transferred all the shares of

these two companies on July 8, 2019.


43%

14%

25%

14%

4%

13

FY2018 Q2Jan.2018 – Jun. 2018

FY2019 Q2Jan. 2019 – Jun. 2019

YoY comparison

Change Change rate

Orders 8,016 8,588 +572 +7.1%

Revenue 8,005 8,600 +595 +7.4%

FY2019Q2


Aerospace Division


Millions of JPY

Cascade

Nacelle parts

Wing parts

Jet engine parts

Others

1. Overview

✓ 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.

✓ Revenues are increasing as a whole as engine parts shipments have increased.

✓ Profit decreased due to increased expenses including depreciation expenses for the Miyazaki

Factory whose construction was completed last year. Aim to improve profitability by strengthening

business foundation (e.g., stable operations at the Miyazaki Factory and cost optimization through

integration of bases).


15%

12%

31%3%

12%

9%

18%

14

FY2018 Q2Jan.2018 – Jun. 2018

FY2019 Q2Jan. 2019 – Jun. 2019

YoY comparison

Change Change rate

Orders 30,132 30,128 △3 △0.0％

Revenue 28,791 29,037 ＋246 ＋0.9％

FY2019Q2


Medical Division


Millions of JPY(Japan) Dialysis machines

(Overseas) Dialysis machines

(Japan) Disposable

(Overseas) Disposable

Maintenance

CRRT

Others

1. Overview

✓ The domestic hemodialysis business remained weak, in a continuously challenging market

environment, mainly due to declined unit prices caused by fiercer competition and postponement of

purchases in anticipation of the launch of new dialysis machines.

✓ Sales of blood tubing lines and other disposables increased as a whole in the domestic market.

Regarding the overseas market, machine sales increased in Europe. Overall sales of the

hemodialysis business remained on a par with the same period last year, but profit decreased due

to increased expenses in Japan.

✓ Regarding the CRRT business whose business restructuring is currently underway, sales of

machines and disposables remained strong in China (main market) and its revenue increased year-

on-year. However, it was not enough to compensate for poor sales in other markets. As a result, the

level of loss remained almost unchanged from the previous period.

Ⅲ. Financial forecast


FY2018Actual record

FY2019Initial

Forecast

FY2019RevisedForecast

Y on Y

comparison

Comparison with

initial forecast

Change Change rate Change

Orders 172,492 174,000 171,500 △992 △0.6% △2,500

Revenue 165,326 172,000 170,000 +4,673 +2.8% △2,000

Operating profit 10,302 11,000 12,000 +1,697 +16.5% +1,000

Operating margin 6.2% 6.4% 7.1%

Profit before tax 9,741 10,600 11,200 +1,458 +15.0% +600

Pretax profit margin 5.9% 6.2% 6.6%

attributable to owners of the company

Profit for the year 7,448 7,800 8,200 +751 +10.1% +400

Profit margin attributable to owners of the company

4.5% 4.5% 4.8%

Average/ForecastAgainst the US dollar (Yen)

Against the euro (Yen)110.44130.35

109.00125.00

109.00122.00

△1.44△5.35

0.00△3.00

Forex sensitivity for FY2019 (When

yen was depreciated by 1 yen)

US dollar (Yen)

Euro (Yen)

Revenue +430 million yen Operating profit +80 million yen

Revenue +370 million yen Operating profit +60 million yen

Financial forecast for FY2019

Consolidated Performance

Millions of JPY

Revised the full-year performance forecast due to the posting of gains on sales of shares of the particle

analytical equipment business, expenditures incurred due to the restructuring of domestic bases, and

changes in exchange rates assumed to prepare performance forecasts.


FY2018Actual record

FY2019Initial

Forecast

FY2019RevisedForecast

Y on Y comparison

Comparison with initial forecast

Industrial Business

Orders 111,459 109,800 107,200 △4,259 △2,600

Revenue 104,501 107,800 105,700 +1,198 △2,100

Operating profit 8,140 8,600 8,0007.6%

△140 △600


Industrial DivisionOrders 82,238 79,900 79,900 △2,338 0

Revenue 76,763 77,900 77,900 +1,136 0

Precision Equipment

Division

Orders 12,204 12,600 9,200 △3,004 △3,400

Revenue 10,682 12,600 9,700 △982 △2,900

Aerospace DivisionOrders 16,884 17,300 17,600 +715 +300

Revenue 16,909 17,300 17,600 +690 +300

Medical Business

Orders 61,032 64,200 64,300 +3,267 +100

Revenue 60,824 64,200 64,300 +3,475 +100

Operating profit 5,582 6,400 6,0009.3%

+417 △400


Corporate expenses, etc. Operating profit △3,419 △4,000 △2,000 +1,419 ＋2,000

Financial forecast for FY2019

Performance by Business Segment

Millions of JPY

Ⅳ. Reorganization of Domestic Manufacturing Bases


Higashimurayama

Miyazaki

Shizuoka

Kanazawa(no change)

Production Base

Hakusan(no change)

• UV-LED

Aim to expand manufacturing capabilities and improve profitability at the same time

by integrating and optimizing manufacturing systems and functions.

Manufacturing Bases by Business Segment

◼ Industrial ：Miyazaki

◼ Precision Equipment ：Higashimurayama

◼ Aerospace ：Kanazawa , Miyazaki

◼ Medical ：Kanazawa

◼ UV-LED ：Hakusan

2019 Start of construction of cryogenic pump testing facility and industrial factory in Miyazaki.

2020 Complete the construction of cryogenic pump testing facility and industrial factory in Miyazaki.

2021 Complete the transfer of pump manufacturingfrom Higashimurayama to Miyazaki.

End of2022 Complete the transfer of pump manufacturing

Schedule

Objectives


R e o r g a n i z a t i o n o f D o m e s t i c M a n u f a c t u r i n g B a s e s

• Medical• Aerospace

Production Base• Industrial• Aerospace

Production Base Research and technology development bases, etc.

• Aerospace• Industrial

Production Base

• Aerospace

Production Base

• Aerospace

Production Base

Logistics base , etc.

Research and technology development bases

＜Before＞＜After＞

＜Before＞

＜After＞

＜After＞

＜Before＞

Ⅴ. Current status and future prospects of CI group


Director & CEO : Peter WagnerDirector & Executive Vice President : Hisanao AminoVice President & CFO : Russell Higgins

Management

Head Office

Year of the establishment

Revenue

Number of employees

Number of subsidiaries

Operations

California

1958

162.3Million USD（FY2018）

654

22

Manufacture and sale of cryogenic liquefied gas equipment, small-scale LNG liquefaction

plants, and industrial gas purification and liquefaction plants

ACD: Manufacture and sale of centrifugal and reciprocating pumps and turbo expanders

CRYOQUIP: Manufacture and sale of vaporizers (ambient type and those using various

heat media)

COSMODYNE：Manufacture and sale of air separation, gas purification and liquefaction

plants


Basic information of Cryogenic Industries group



Object ives of acquir ing the CI Group

Liquefactionplant

Offshoregas field F L N G※

LNGconveyance

N

N

L G

N

L

N

LNG receiving base

Power plant

G

・Products of Nikkiso GroupNIKKISO LEWA GEVEKE

・Products of CI Group

・ LNG Gas

※1 FSRU：Floating storage and regasification unit※2 FLNG：Floating LNG

N GL

Small-scale LNG supply chain

N G

C C

C

C

Production

L G

Gas field

Vaporizers

Pumps

Plant

F S R U※

Consumption

C

C

C

C

Supply ship

LNG fuel ship

Gas station

Gas fuelvehicle/LNGtrain

Bunkering

Tanker

Realize a group-wide “Total Value Chain” thoroughly encompassing upstream through downstream sectors


Air Separation device

Small-scale plant engineering

Ambient Air Vaporizers / Process Vaporizers

Turbo Expander Systems

Centrifugal pumps / Reciprocating pumps

23

C r y o g e n i c I n d u s t r i e s G r o u p

Cryogenic Industries, Inc. 【Corporate division】

【Heat transfer equipment】【Plant Engineering】【Pumps and manufacture

of related equipment】

CosmodyneCryoquipACD

Management and supervision of subsidiaries


Business outline of CI group



I n t e g r a t e w i t h N C I ※ a n d r e o r g a n i z e o u r b u s i n e s s b y

m a r k e t s e g m e n t

Reorganization through the integration of business operations of NCI and CI to deal with market diversification and customer needs

※NCI：Nikkiso Cryo, Inc.



Group synergyEstablish the Group’s global service network covering the U.S., Canada, Europe, Asia, the Middle East and other areas



Results of sales activit ies

LNG import terminals

➢ Succeeded in collectively receiving orders for NCI’s cryopumps, Cryoquip’s vaporizers and ACD’s pumps in India in 2018 (about 1 billion yen).

LNG peak shaving plants

➢ Received the biggest order ever for CI in terms of monetary amount in the U.S. in 2018 (about 3.1 billion yen).

➢ Pending orders and inquiries are increasing.

LNG virtual pipelines

➢ Succeeded in receiving an order for a small receiving terminal in Puerto Rico in 2019 (about 0.8 billion yen).

Cryogenic air separation units (ASUs)

➢ Received multiple orders for industrial gas purification plants in 2019. (e.g., Panama, Malta, and Algeria)



Future plan

Create group-wide synergy with Nikkiso, LEWA and Geveke

➢ Improve execution ability and increase sales and profits by mutually using the Group’s sales, production and service networks

➢ Enhance profitability by reviewing the Group’s procurement, logistics and supply chain

➢ Reduce cost through the mutual use of operation bases

Expansion of solution business

➢ Build auxiliary facilities for small LNG receiving terminals ➢ Bunkering-related facilities, equipment and systems➢ Equipment and systems for hydrogen filling stations and relevant facilities➢ Equipment and systems for LNG/LCNG stations➢ Fuel supply systems for LNG carriers

Appendix


< Medical >< Aerospace >< Industrial and Precision

Equipment >

29

Impact of FX

Orders Analysis (vs FY2018 Q2)

Millions of JPY

FY2019 Q2

(Jan.2019-Jun.2019)

Orders

85,908FY2018 Q2

(Jan.2018-Jun.2018)

Orders

84,730

＋1,812

Simple

increase

△1,202

+125

Impact of FX

Simple

increase

Simple

increase Impact of FX

＋442 △446

✓ Orders for large cryogenic

pumps increased mainly

thanks to an increase in

LNG-receiving terminals.

✓ Orders for CI Group’s

LNG-related product were

increased.

✓ Orders for fan case liners

increased

✓ Strong sales of hemodialysis

machines in Europe.

✓ Sales of disposables (e.g.

blood tubing lines and powder

dialysate) were strong.

+446


< Medical>< Aerospace >< Industrial and Precision

Equipment >

30

＋468 ＋126

△478＋724

Revenue Analysis (vs FY2018 Q2)

Millions of JPY

FY2018 Q2(Jan.2018-Jun.2018)

Revenue

75,578

FY2019 Q2

(Jan.2019-Jun.2019)

Revenue

78,956

Simple

increaseImpact of FX

Simple

increaseImpact of FX

Impact of FX

＋3,590

Simple

increase

△1,052

✓ Sales of LEWA’s oil- and

gas-related products

increased. The after-sales

service business also grew.

✓ Sales of large cryogenic

pumps increased.

✓ The CI Group’s LNG-related product sales were strong.

✓ Sales for fan case liners

increased .

✓ Sales of disposables (e.g.

blood tubing lines and powder

dialysate) were strong.

✓ Strong sales of hemodialysis

machines in Europe.


< Medical>< Aerospace >< Industrial and Precision

Equipment >

31

decrease in

corporate

expenses, etc.＋73 △52 △198

+1,221 △419

△148

FY2019 Q2

(Jan.2019-Mar.2019）

Operating profit

3,558

△88

Operating profit Analysis (vs FY2018 Q2)

Millions of JPY

FY2018 Q2

(Jan.2018-Jun.2018)

Operating profit

3,168

Simple

increase Impact of FX Simple

decrease

Impact of FX

Simple

decrease Impact of FX

✓ Logistics and other

expenses increased.

✓ The CRRT business remained in a slump.

✓ The Miyazaki Factory’s

depreciation and other

expenses increased.

✓ The CI Group achieved

strong sales and

decreased its depreciation

expenses.

✓ LEWA’s sales increased.

✓ Subsidy

income, etc.

decreased.


As of end of December 2018 As of end of June 2019

AmountComposition

ratio AmountComposition

ratio Change

Total assets 249,788 100.0％ 264,157 100.0% +14,368

Total current assets 121,342 48.6% 125,264 47.4% +3,922

Cash and cash equivalents 29,269 11.7% 34,389 13.0% +5,119

Trade and other receivables 54,077 21.6% 48,250 18.3% △5,826

Inventories 33,297 13.3% 34,156 12.9% ＋859

Total non-current assets 128,446 51.4% 138,892 52.6% ＋10,446

Property, plant and equipment 44,920 18.0% 43,955 16.6% △964

Goodwill and Intangible assets 64,255 25.7% 62,611 23.7% △1,644

Total liabilities 171,450 68.6% 187,895 71.1% ＋16,445

Trade and other payables 27,380 11.0% 24,601 9.3% △2,778

Bonds and borrowings 117,052 46.9% 122,804 46.5% ＋5,751

Total equity 78,338 31.4% 76,261 28.9% △2,077

Consolidated Statement of Financial Position

Millions of JPY

※Assets and Liabilities as of June 30, 2019, were increased compared to the end of the previous fiscal year, due mainly to an increase in right-of-use assets

and lease liabilities resulting from the application of IFRS 16.


Consolidated Statement of Cash Flows

Millions of JPY

FY2018Q2（Jan.2018-Jun.2018）

FY2019Q2（Jan.2019-Jun.2019）

Change

Cash flows from operating activities 7,124 4,985 2,138

Profit before tax 2,762 2,999 +236

Depreciation and amortization 3,092 4,421 +1,329

Increase(decrease) of working capital(trade receivables/payables and inventories)

△2,740 △322 +2,418

Cash flows from investment activities 4,764 △3,677 +1,086

Purchase of property, plant and equipment 4,233 △3,503 ＋730

Payments for acquisition of subsidiaries 532 △610 △77

Free cash flows 2,360 1,308 △1,051

Cash flows from financing activities 283 4,782 +4,498

increase(decrease) in borrowings 1,095 7,084 ＋5,988

Dividends paid 569 △711 △142

Cash and cash equivalents at the end of year 35,794 34,389 △1,404


Japan

37%

Asia24%

North America

18%

Europe19%

Others3%

34

MedicalAerospacePrecision Equipment

63%

26%

6%4%2% 日本

アジア

北米

欧州

その他

18%

7%

71%

5%

69%

14%

1% 13%2%

20%

30%

40%

50%

60%

70%

0

20,000

40,000

60,000

80,000

100,000

120,000

08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 15/12 16/12 17/12 18/12

アジア北米

欧州その他

海外売上収益比率（右軸）

FY2019 Q2

Nikkiso group total Revenue trend by overseas region

FY2019 Q2

FY2019 Q2

Overseas revenue ratio

63%

(9 months)

Industrial

11%

36%

20%

29%

4%

FY2019 Q2

FY2019 Q2

Revenue Composition Ratio by Region

Millions of JPYAsia North America

Europe Other

Overseas revenue ratio (right axis)

Japan

Asia

North America

Europe

Other


FY2019

Performance forecast

Against the US dollar Against the euro

RevenueOperating

profitRevenue

Operating

profit

Industrial Division/

Precision Equipment

Division+290 +20 +300 +30

Aerospace Division +140 +80 +0 +0

Medical Division +10 △30 +70 +30

Total +430 +80 +370 +60

Average/Forecast (Yen）

(revised on Aug 9)109.00 122.00

Breakdown of forex sensitivity

※When yen was depreciated by 1 yen

Millions of JPY


FY2016 FY2017 FY2018

Earnings per share (Basic) 66.08yen 72.82yen 104.63yen

Return on equity (ROE) 7.2% 7.3% 9.8%

Return on asset (ROA) 3.8% 3.9% 3.9%

Operating margin 6.2% 6.2% 6.2%

Equity ratio 37.4% 30.7% 30.7%

Debt/equity ratio 1.05times 1.63times 1.53times

FY2016 FY2017 FY2018

Capital expenditure 7,635 7,508 12,869

Research and development expenditure 1,679 2,435 2,387

Depreciation and amortization 4,766 5,246 6,335

Financial data

Millions of JPY


37

Quarterly orders/order backlog trend of Industrial Division

Orders

Order backlog

Millions of JPY

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

overseas 20,422 16,050


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

overseas 44,435 44,282

37


Quarterly revenue trend

Millions of JPY


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

overseas 15,595 16,203


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

overseas 896 1,113

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

overseas 3,389 3,704

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

overseas 4,193 4,703

Company Information


130.0

140.9

165.3

8.1

8.7

10.3

0.0

150.0

16/12 17/12 18/12

Industrial business 63%

Medical business

37%

Industrial Division

47%Medical Division

37%

Aerospace Division

10%

FY2018


6%

72.3 78.0

83.1 90.1

103.6

121.5 129.2

110.2

132.8

4.7

5.6 5.3

6.5

7.4

9.4

6.1

3.8

4.8

0.0

150.0

09/3 10/3 11/3 12/3 13/3 14/3 15/3 15/12 16/12

Net sales Operating income

JGAAP IFRS

Revenue Operating Profit

( billion yen )

Trend in Revenue/Operating Profit

Consolidated Revenue

Revenue by Segment


(IFRS)(IFRS)(IFRS)(9months)

Acquired the LEWA Group Acquired Geveke B.V. Higashimurayama Aerospace factory

Acquired the Cryogenic Industries group

33,663

43,076

52,393 54,663

69,307

79,239

69,536 75,183

85,406

111,459 107,300

37,233

42,123

47,490

55,176

68,588

74,960

68,625

75,593

85,228

104,501 105,700

3,444 2,760 4,662 3,770 5,102 4,375 3,668

5,932 7,539 8,140 8,000

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

受注高売上収益セグメント利益セグメント利益率

Aerospace product expansion

Transferred production from Shizuoka to Kanazawa

(revised forecast)

Performance trend of Industrial Business

Millions of JPYOrder (Left axis) Revenue (Left axis) Operating profit (Left axis) Operating margin (Right axis)


136132

195 194 204

220236 232

200

247

127 129

148

189

217 217224 219

236 237

14 13 1727 30 31 28

21 28 22

0

20

40

60

80

100

120

0

50

100

150

200

250

300

09 10 11 12 13 14 15 16 17 18

受注高（左軸）売上収益（左軸） EBITDA（左軸）原油価格（右軸）

36%

41%

23%

FY2010

（Source）Crude oil price：The World Bank Group「Commodity Markets Outlook」

34%

36%

6%

24%

FY2015

25%

38%

10%

28%

FY2018

42

Performance trend of LEWA

Oil & Gas

Process industry

Clean market

After service

Revenue Composition ratio

Millions of € ＄/barrel

Order (Left axis) Revenue (Left axis) EBITDA (Left axis) Crude oil price (Right axis)


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)

Consumption tax hike in April 2014 (to 8% from 5%)

(IFRS) (IFRS) (IFRS)

Acquired the CRRT business

Transferred production from Shizuoka to Kanazawa

Higher demand for online HDF

40,786 41,019 42,646

48,493

52,960 54,295

41,592

54,451 55,684

60,824

64,300

5,226 5,598 5,224 6,962 7,845

5,243 3,041

5,209 3,950

5,582 6,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2010/03 2011/03 2012/03 2013/03 2014/03 03/2015 2015/12 2016/12 2017/12 2018/12 2019/12

売上収益セグメント利益セグメント利益率

Performance trend of Medical Business

(9months)

Millions of JPY

Revenue (Left axis) Operating profit (Left axis) Operating margin (Right axis)

(revised forecast)


Medical Division

Aerospace Division

Industrial Division

69 71 74 75 83 87 95 01 09 1053 54 56 60 61 67 1285 13 15 1714 18

Footsteps of the NIKKISO Group

History

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.

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.

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.

Obtains a license for the technology to manufacture Microtrac particle size analyzers from Honeywell Inc. of the U.S.

Acquires CRRT business of Baxter International Inc.

Begins production of bloodtubing lines for hemodialysisin Vietnam.

Completes construction of Higashimurayama Plant.

Listing on the second section of the Tokyo Stock Exchange.

Listing on the first section of the Tokyo Stock Exchange.

Completes construction of Shizuoka Plant.

Begins manufacturing andsales of cryogenic pumps.

Completes construction ofKanazawa Plant.

Acquires the LEWA Group of Germany.

Accepts transfer of a German Fresenius Medical Care’s dialyzer and peritoneal dialysis product selling in Japan.

Establishes a joint venture with the China-based Weigaofor the manufacture and maintenance of dialysis machine

Decides to transfer the production function from Shizuoka Plant to Kanazawa Plant as part of the anti-disaster measure.

Acquires Geveke B.V. of the Netherland

Acquires Cryogenic pump business of Atlas Copco.

Acquires the Cryogenic Industries Group of U.S.A.

Completes construction ofAerospace factory at theMiyazaki Nikkiso

Documents

NIKKISO CO., LTD. - Financial results for FY2019 Q2 ... › ir › files › f68525a3225ded6d6e2a5ac...Financial results for FY2019 Q2 Financial Summary Aug. 21, 2019 NIKKISO CO.,