Financial results for FY2018 Financial Summary - …E)FY2018_78th_4q...2019/02/19 · Nikkiso’s basic capital policy is to secure sustainable growth and to improve the Company’s

Financial results for FY2018

Financial SummaryFebruary 22, 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

FY2017 January 2017 -December 2017

Performanceforecast

Announced inFebruary 14, 2018

FY2018January 2018 -December 2018

YoY comparisonComparisonwith forecast

Change Change rate Change rate

Orders 140,412 162,000 172,492 ＋32,080 ＋22.8% +6.5%

Revenue 140,912 162,000 165,326 ＋24,413 ＋17.3% +2.1%

Operating profit 8,718 10,000 10,302 +1,584 +18.2% +3.0%

Operating margin 6.2% 6.2% 6.2%

Profit before tax 8,310 9,000 9,741 +1,431 +17.2% +8.2%

Pretax profit margin 5.9% 5.6% 5.9%

Profit for the yearattributable to owners of the company

5,182 5,900 7,448 +2,265 ＋43.7% +26.2%

Profit marginattributable to owners of the company

3.7% 3.6% 4.5%

Average foreign exchange rate

Against the US dollar (Yen) 112.16 108.00 110.44 -1.72 - -

Against the euro (Yen) 126.70 132.00 130.35 +3.65 - -


Consolidated Performance

Millions of JPY


Billions of JPY

29.5

62.9

97.1

140.9

34.4

75.5

115.4

165.3

1.2

2.4

4.9

8.7

8.6

3.1

6.3

10.3

FY2018FY2017


1$ = 112.16Yen1€ = 126.70Yen


1$ = 110.44Yen1€ = 130.35Yen

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4


Quarterly results trend


FY2017

Jan.2017 – Dec. 2017

FY2018

Jan. 2018 – Dec. 2018Change Remarks

Gross profit 48,608 56,977 +8,368

- Selling, general and administrative expenses -42,218 -47,123 -4,905

Increase due to joining of CI Group（-3,549）

- Other income 2,554 805 -1,749Absence of proceeds from sale of assets owned, etc.（-1,274）

- Other expenses -227 -356 -128

Operating profit 8,718 10,302 +1,584

- Financial income 493 528 +34

- Financial costs -1,112 -1,355 -242

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

210 266 +55

Profit before tax 8,310 9,741 +1,431

Exchange rate for the conversion of the performance of overseas subsidiaries

- Against the US dollar (Yen) 112.16 110.44 -1.72

- Against the euro (Yen) 126.70 130.35 +3.65


Breakdown of Profit/Loss

Millions of JPY


FY2017 January 2017 -December 2017

Performanceforecast

Announced inFebruary 14, 2018

FY2018January 2018 -December 2018

YoY comparisonComparisonwith forecast

Change Change rate Change rate

Orders 85,406 101,900 111,459 ＋26,053 ＋30.5% ＋9.4%

Industrial Business

Revenue 85,228 101,800 104,501 +19,273 +22.6% +2.7%

Operating profit 7,539 7,900 8,140 +600 +8.0% +3.0%


Industrial Division

Orders 58,827 72,300 82,238 +23,411 +39.8% +13.7%

Revenue 59,715 71,700 76,763 +17,047 +28.5% +7.1%

Precision Equipment

Division

Orders 10,731 11,100 12,204 +1,472 +13.7% +9.9%

Revenue 9,843 11,600 10,682 +838 +8.5% -7.9%

Aerospace Division

Orders 15,712 17,000 16,884 +1,171 +7.5% -0.7%

Revenue 15,550 17,000 16,909 +1,358 +8.7% -0.5%

Medical Business

Orders 55,005 60,100 61,032 +6,026 +11.0% +1.6%

Revenue 55,684 60,200 60,824 +5,139 +9.2% +1.0%

Operating profit 3,950 5,800 5,582 +1,631 +41.3% -3.8%


Corporate expenses, etc.

Operating profit -2,771 -3,700 -3,419 -648 - -


Performance by Business Segment

Millions of JPY


43%

6%16%

7%

23%

4%

FY2018

FY2017Jan.2017 – Dec. 2017

FY2018Jan. 2018 – Dec. 2018 YoY comparison

Change Change rate

Orders 58,827 82,238 ＋23,411 ＋39.8％

Revenue 59,715 76,763 ＋17,047 ＋28.5％

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

✓ The booming cryogenic pump business positively affected the overall performance of the Industrial

Division, resulting in increased revenues and profits.

✓ The upstream business including oil and gas mining saw an upward trend in orders led by the rise in

oil prices since the second half of 2017. The petrochemical market, which is the mid-downstream

sector, remained active due to continued investment mainly in North America and China.

✓ The LNG and gas-related business saw an upsurge in inquiries about large cryogenic pumps for the

LNG market. Orders for industrial gas from the semiconductor and medical-related businesses

increased in Asia.


2018 YTD

136 132

195 194 204

220

236 232

200

58

132

197

247 250

127 129

148

189

217 217

224 219

236

46

94

153

237 243

14 13 1727 30 31 28

2128

1 411

22 27

59 50

98 103 91 95

107 120

84

106

133 138

95

-200

-150

-100

-50

0

50

100

150

0

50

100

150

200

250

300

350

Orders (Left axis) Revenue (Left axis) EBITDA (Left axis) Orders backlog (Right axis)


Performance trend of LEWA

Millions of €

19(Forecast)Q1 Q4Q3Q2

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

3 10 13 180 2

2031 37

10

2030

41

12

30

43

5863

18

35

48

65

15

34

50

73

88

4

911

14

1

5

11

17

22

0

10

20

30

40

0

50

100

150

200

ACD 売上収益（左軸） Cryoquip 売上収益（左軸） Cosmodyne 売上収益（左軸） EBITDA（右軸）

8

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

124

31

65

92

28

67

113

188

162

(Forecast）


Performance trend of Cryogenic Industries Group

Millions of ＄

FY2017 ※unaudited FY2018

Revenue (Left axis) Revenue (Left axis) Revenue (Left axis) (Right axis)

FY2019


26%

44%

25%

5%

FY2018

FY2017Jan.2017 – Dec. 2017


Change Change rate

Orders 10,731 12,204 +1,472 +13.7％

Revenue 9,843 10,682 +838 +8.5％


Precision Equipment Division

1. Overview


Millions of JPY

Water conditioning system

Precision equipment

Fine ceramics

Others

✓ Orders for new warm isostatic laminators from the semiconductor manufacturing industry increased.

We are building and strengthening a production and distribution system to meet increased global

demand driven by expanding applications of multilayer ceramic capacitor.

✓ While the power plant business stagnated in Japan, inquires about water-conditioning systems

especially from Southeast Asia are on the increase. We are improving cost competitiveness and

strengthening sales activities by utilizing our Taiwanese subsidiary.


FY2017Jan.2017 – Dec. 2017


Change Change rate

Orders 15,712 16,884 +1,171 +7.5％

Revenue 15,550 16,909 +1,358 +8.7％

45%

14%

25%

12%4%

FY2018


Aerospace Division


Millions of JPY

Cascade

Nacelle parts

Wing parts

Jet engine parts

Others

1. Overview

✓ The shipment volume increased year on year as demand for our core product, cascade, recovered.

✓ Operating profit remained at the same level as the previous year, as up-front expenses associated

with the Miyazaki Plant were offset by cost reduction efforts made by having in-house production of

some parts and stabilizing engine part production at the Higashimurayama Plant.

✓ Construction of two new production bases — new Miyazaki Plant and Vietnam Hanoi No.2 Plant —

was completed in October and November 2018, respectively in preparation for production

expansion in response to increased aircraft demand.


FY2017Jan.2017 – Dec. 2017


Change Change rate

Orders 55,005 61,032 +6,026 +11.0％

Revenue 55,684 60,824 ＋5,139 ＋9.2％

16%

13%

30%

3%

11%

8%

18%

FY2018


Medical Division


Millions of JPY(Japan) Dialysis machines

(Overseas) Dialysis machines

(Japan) Disposable

(Overseas) Disposable

Maintenance

CRRT

Others

1. Overview

✓ The hemodialysis business saw a recovery in domestic demand for dialysis machines from the

second quarter and an increase in sales of blood tubing lines and other disposables. In the overseas

market, sales of knock-down kits to the Chinese market contributed to growth in both revenues and

profits across the hemodialysis business.

✓ In the CRRT business, review of a development framework and one-time costs incurred for business

restructuring pushed operating profit down, although sales of machines and disposals increased as a

result of successful measures taken to overhaul a sales structure in China.


FY2018

Actual record

FY2019

Performance forecast

YoY comparison

Change Change rate

Orders 172,492 174,000 +1,507 +0.9%

Revenue 165,326 172,000 +6,673 +4.0%

Operating profit 10,302 11,000 +697 +6.8%

Operating margin 6.2% 6.4%

Profit before tax 9,741 10,600 +858 +8.8%

Pretax profit margin 5.9% 6.2%

attributable to owners of the company

Profit for the year 7,448 7,800 +351 +4.7%

Profit margin attributable to owners of the company

4.5% 4.5%

Average/ForecastAgainst the US dollar (Yen)

Against the euro (Yen)110.44130.35

109.00125.00

-1.44-5.35

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


FY2018

Actual recordFY2019


YoY comparison

Change Change rate

Industrial Business

Orders 111,459 109,800 -1,659 -1.5%

Revenue 104,501 107,800 +3,298 +3.2%

Operating profit 8,140 8,6008.0%

+459 +5.6%

Operating margin 7.8%

Industrial DivisionOrders 82,238 79,900 -2,338 -2.8%

Revenue 76,763 77,900 +1,136 +1.5%

Precision Equipment

Division

Orders 12,204 12,600 +395 +3.2%

Revenue 10,682 12,600 +1,917 +18.0%

Aerospace DivisionOrders 16,884 17,300 +415 +2.5%

Revenue 16,909 17,300 +390 +2.3%

Medical Business

Orders 61,032 64,200 +3,167 +5.2%

Revenue 60,824 64,200 +3,375 +5.5%

Operating profit 5,582 6,40010.0%

+817 +14.6%

Operating margin 9.2%

Corporate expenses, etc. Operating profit -3,419 -4,000 -580 -

Financial forecast for FY2019

Performance by Business Segment

Millions of JPY


8 8 810

8 810

10

24.2% 22.0% 17.2%18.3%

-10.0%

90.0%

0

5

10

15

20

25

Interim dividends Year-end dividends

Dividend payout ratio

14

Yen

【Shareholder Return Policy】

Nikkiso’s basic capital policy is to secure sustainable growth and to improve the Company’s medium- and long-term corporate value while pursuing optimal balance between the need to maintain a sound financial position, capital efficiency, and the proper return of profits to shareholders. With the fundamental recognition that the continuous and stable return of profits to shareholders is an important component of our capital policy, we work to allocate profits accordingly, whiletaking into consideration our performance and the business environment. At the same time, we strive to appropriately reinvest our internal reserves with a view toward developing new business and strengthening production systems.

16 16

1820

Shareholder returns

FY2016 FY2017 FY2018 FY2019

（Forecast)

✓ After having the prospect of maintaining a stable operating profit of 10.0 billion yen

and taking into account all the most recent financial circumstances, we increased our

year-end dividend by 2 yen per share from 8 yen. This brings the annual dividend to 18

yen.

✓ The annual dividend for 2019 is forecasted to be 20 yen, with a payout rate of 18.3%.


Deep UV-LED

Nikkiso led the world in successfully developing and mass-producing Deep UV-LED that can be

used in practical applications.

Deep UV-LED is drawing attention as a next-gen light source.⚫ Past Milestones

✓Mercury-free, a next-gen light source with low

environmental load

✓ Superior in robustness

✓ Compact size applicable to a wide range of applications

✓ Long service life (10,000 hours and more) longer than

mercury lamp

✓ Energy saving (low operating voltage, no warming-up time)

⚫ Features:

⚫ Main functions:

Light sources for disinfection and purification of water

and air, resin curing, and photocatalyst, etc.

2006

Nikkiso established UV Craftory Co., Ltd. aimed at practical

use of Deep UV-LED based on findings of Nobel Prize winners,

professor Akasaki and professor Amano.

2012

Launch sample sales of Deep UV-LED.

2014

Complete the construction of Hakusan Factory for design,

development, and manufacturing of Deep UV-LED and its

modules.

2015

Succeed in mass-producing Deep UV-LED with the world’s

highest output of 45 mW.

2016

Acquire AquiSense Technologies LLC that develops water

disinfection application.

2017

Form a business alliance with Formosa Plastic Group.

2018

Develop Deep UV-LED water disinfection module that

achieves performance equivalent to mercury lump.

Deep UV-LED

package

Wavelength (nm)

Resin curingLight

treatment

light source for measuring the

amount of specific substances

Disinfection

and air

purification

Nikkiso’s UV-LED

(DUV-LED)

Significantly improved

AlGaN crystal growth

technology


Deep UV-LED

We move forward with developing Deep UV-LED applications in a wide range of fields. Deep UV-

LED is drawing attention as a next-generation light source that will replace mercury lamp.

Water disinfection

module for industrial use

Water disinfection module

”PearlAqua™”

Use and application of Deep UV-LED

- Entry into force of the Minamata Convention on Mercury -

The Minamata Convention - an international regulation to prevent

mercury contamination - came into force in August 2017.

Consequently, manufacturing, import and export of products including

fluorescent bulbs and batteries containing mercury will be generally

prohibited by 2020. Mercury UV lamp is also expected to be regulated

following the penetration of Deep UV-LED which is an eco-friendly

alternative.

Market environment and future prospects

✓ Inquiries from companies preparing for compliance with

the 2020 Minamata Convention increased.

✓ Sales of Deep UV-LED water disinfection module that

achieves performance equivalent to mercury lamp.

✓ Establish a joint venture with Formosa Plastic Group.

✓ Mass-production of Deep UV-LED at the joint venture.

✓ Accelerate development of applications in a variety of

fields, ranging from water and air disinfection to surface

sterilization.

Environment

High-

performance

and high-quality

UV-LED

Medical care and life science

Industry

Tap water and

sewage water

Air

purification

Fishery and

culture fishery

Light treatmentMeasurement

and analysis

Hospital

infection

prevention

Adhesion CoatingPrinting

Appendix


< Medical >< Aerospace >< Industrial and Precision Equipment >

18

＋24,411

Simple

increase

FY2018(Jan.2018-Dec.2018)

Orders

172,492

＋469 ＋1,407 -236

FY2017(Jan.2017-Dec.2017)

Orders

140,412

＋5,692 ＋334

Orders Analysis (vs FY2017)

Millions of JPY

Impact of FX

Simple

increase

Simple

increase

Impact of FX

Impact of FX

✓ Increase in LEWA due to improved

market conditions

✓ Joining of CI group, improved

market conditions

✓ Increase in products from

Vietnam Hanoi First Plant and

Higashimurayama Plant

✓ Recovery of demand for

hemodialysis equipment and

growth of disposables sales in

domestic market

✓ Strong performance of

overseas hemodialysis

business in the mainstay

Chinese market


< Medical>< Aerospace>< Industrial and Precision Equipment >

19

FY2018(Jan.2018-Dec.2018)

Revenue

165,326

＋607＋1,594 -236

＋426+4,713

＋17,307

FY2017(Jan.2017-Dec.2017)

Revenue

140,912

Revenue Analysis (vs FY2017)

Millions of JPY

Simple

increase Impact of FX

Simple


Simple

increaseImpact of FX

✓ Strong performance in the

cryogenic pump business

✓ Joining of CI group, strong

performance in CI group

✓ Shipment growth from Vietnam

Hanoi First Plant and

Higashimurayama Plant


hemodialysis equipment and

growth of disposables sales in

domestic market




Chinese market


FY2018(Jan.2018-Dec.2018)

Operating profit

10,302

< Industrial and Precision Equipment >

< Aerospace> < Medical>

20

FY2017(Jan.2017-Dec.2017)

Operating profit

8,718

Increase in corporate

expenses, etc.

＋51+119 -135

+1,533

+565

-648＋98

Operating profit Analysis (vs FY2017)

Millions of JPY

Simple


Simple


Simple


✓ Strong performance in

the cryogenic pump

business

✓ Shipment growth of Jet

engine parts

✓ Cost reductions through in-

house parts manufacture

✓ Up-front expenses

associated with Miyazaki

factory


hemodialysis equipment in

domestic market

✓ Sales increase of disposables

such as blood tubing Lines




Chinese market

✓ Absence of

proceeds from sale

of assets owned


As of December 2017 As of September 2018

AmountComposition

ratio AmountComposition

ratio Change

Total assets 244,692 100.0％ 249,788 100.0％＋5,096

Total current assets 119,103 48.7% 121,342 48.6% +2,238

Cash and cash equivalents 34,095 13.9% 29,269 11.7% -4,825

Trade and other receivables 50,434 20.6% 54,077 21.6% +3,642

Inventories 30,363 12.4% 33,297 13.3% +2,934

Total non-current assets 125,588 51.3% 128,446 51.4% +2,857

Property, plant and equipment 38,454 15.7% 44,920 18.0% +6,466

Goodwill and Intangible assets 67,792 27.7% 64,255 25.7% -3,536

Total liabilities 167,905 68.6% 171,450 68.6% +3,544

Trade and other payables 22,624 9.2% 27,380 11.0% +4,755

Bonds and borrowings 122,528 50.1% 117,052 46.9% -5,475

Total equity 76,787 31.4% 78,338 31.4% +1,551

Consolidated Statement of Financial Position

Millions of JPY


FY2017（Jan.2017-Dec.2017）

FY2018（Jan.2018-Dec.2018）

Change

Cash flows from operating activities 4,915 14,076 +9,160

Profit before tax 8,310 9,741 +1,431

Depreciation and amortization 5,246 6,335 +1,089

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

-5,202 +2,219

Cash flows from investment activities -48,058 -12,218 +35,839

Purchase of property, plant and equipment -5,604 -11,959 -6,355

Payments for acquisition of subsidiaries -42,299 - +42,299

Free cash flows -43,142 1,857 +45,000

Cash flows from financing activities 51,015 -5,771 -56,787

increase(decrease) in borrowings 52,310 -4,346 -56,657

Dividends paid -1,138 -1,139 -0

Cash and cash equivalents at the end of year 34,095 29,269 -4,825

Consolidated Statement of Cash Flows

Millions of JPY


Japan

36%

Asia25%

North America

18%

Europe18%

Others3%

23

69%

21%

5%4% 1%

15%

8%

74%

3%

69%

15%

1% 12%

3%

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）

FY2018 FY2018 FY2018

FY2018

Overseas revenue ratio

64%

(9 months)

11%

37%

21%

27%

4%

FY2018

Revenue Composition Ratio by Region

Nikkiso group total

Industrial Precision Equipment Aerospace Medical

Millions of JPY

Revenue trend by overseas region

Asia North America

Europe Other

Overseas revenue ratio (right axis)

日本

アジア

北米

欧州

その他

Japan

Asia

North America

Europe

Other


FY2019


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） 109.00 125.00

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%


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


1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Industrial Division

FY2017(Jan.2017-Dec.2017)

11,261 14,331 14,132 19,103(9,487) (12,241) (12,425) (17,113)

FY2018(Jan.2018-Dec.2018)

20,066 19,760 18,808 23,604(18,316) (17,659) (16,974) (20,488)

Precision Equipment

Division

FY2017(Jan.2017-Dec.2017)

2,314 2,682 2,608 3,127(677) (908) (866) (1,077)

FY2018(Jan.2018-Dec.2018)

2,650 4,055 2,663 2,836(851) (2,287) (973) (725)

Aerospace Division

FY2017(Jan.2017-Dec.2017)

3,519 4,156 3,703 4,334(2,872) (3,755) (3,240) (3,986)

FY2018(Jan.2018-Dec.2018)

3,642 4,374 3,896 4,972(3,170) (3,787) (3,092) (4,233)

Medical Division

FY2017(Jan.2017-Dec.2017)

12,942 13,245 14,010 14,808(3,380) (3,830) (4,189) (4,050)

FY2018(Jan.2018-Dec.2018)

14,198 15,934 12,615 18,285(4,592) (5,360) (2,279) (6,557)

（）overseas order

Quarterly orders trend

Millions of JPY



Industrial Division

FY2017(Jan.2017-Dec.2017)

10,522 13,476 15,274 20,443(8,321) (12,502) (13,393) (16,986)

FY2018(Jan.2018-Dec.2018)

15,206 18,361 19,770 23,426(13,247) (16,289) (17,809) (21,203)

Precision Equipment

Division

FY2017(Jan.2017-Dec.2017)

2,421 2,377 2,070 2,975(745) (885) (821) (775)

FY2018(Jan.2018-Dec.2018)

2,516 2,640 2,187 3,339(604) (794) (739) (1,177)

Aerospace Division

FY2017(Jan.2017-Dec.2017)

3,578 3,991 3,779 4,202(2,920) (3,606) (3,306) (3,865)

FY2018(Jan.2018-Dec.2018)

3,792 4,213 3,924 4,980(3,301) (3,648) (3,114) (4,240)

Medical Division

FY2017(Jan.2017-Dec.2017)

12,964 13,521 13,114 16,085(3,834) (3,959) (4,623) (3,671)

FY2018(Jan.2018-Dec.2018)

12,936 15,855 13,943 18,090(4,148) (4,586) (4,682) (5,335)

（）overseas revenue

Millions of JPY

Quarterly revenue trend



Industrial Division

FY2017(Jan.2017-Dec.2017)

29,727 30,582 39,461 38,198(26,570) (27,174) (36,036) (34,834)

FY2018(Jan.2018-Dec.2018)

43,058 44,457 43,496 43,674(40,088) (41,298) (40,305) (39,608)

Precision Equipment

Division

FY2017(Jan.2017-Dec.2017)

5,531 5,835 6,374 6,526(1,763) (1,985) (2,201) (2,211)

FY2018(Jan.2018-Dec.2018)

6,660 8,075 8,551 8,047(2,467) (3,851) (3,969) (3,713)

Aerospace Division

FY2017(Jan.2017-Dec.2017)

26 192 115 247(21) (170) (104) (225)

FY2018(Jan.2018-Dec.2018)

96 258 230 222(94) (234) (212) (205)

Medical Division

FY2017(Jan.2017-Dec.2017)

3,721 3,444 4,341 3,064(1,943) (2,287) (2,185) (2,047)

FY2018(Jan.2018-Dec.2018)

4,326 4,405 3,077 3,272(2,587) (3,293) (896) (2,108)

Millions of JPY

Quarterly order backlog trend

（）overseas order backlog

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 business37%

Industrial Division

47%Medical Division

37%

Aerospace Division

10%

FY2018

Precision Equipment Division

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


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


Industrial Division

LNG -Global Strategy-

Transport Consumption

Gas stationGas fuel

vehicle/LNG train

Tanker

LNG fuel shipBunkering

Small liquefaction

plant

Regasification plant

Adding core technologies of the CI Group contributes to covering a wide range of the LNG value chain. Building cryogenic product lines, including the industrial gas field.

PlantHomesPower plant

Offshore gas field

Gas field

Liquefaction plant

Floating offshore natural gas

liquefaction facility

LNG conveyance

Floating LNG storage

regasification facility

LNG receiving base

C C

N Nikkiso C CI group

Peak shaving

N N C N C

Production

C

Production Liquefaction Conveyance Receipt Storage/Distribution

Power source usage

Nikkiso Group’s area of coverage

CI Group’s area of coverage

Fuel supply device for LNG fuel ship

LNG peak shaving plant

✓ Highly efficient and stable fluid control technology for ultra-low temperatures

✓ Heat exchange process in gasification and liquefaction✓ Highly efficient small and medium-scale process/plant

technology

CI Group’s core technologies

Electricityusage

Heat source usage


Overview of Cryogenic Industries group

Business Segment Business area/Products Market demand Growth strategy

ACD

✓ Supplying pumps and related equipment used for manufacturing industrial gases as well as transporting, storing, and distributing LNG

・Cryogenic pumps

（Centrifugal Pump/

Reciprocating pumps）

・Turbo Expanders

✓ Growing demand for turbo expanders for industrial gas industries in Taiwan, China, etc. (semiconductor, medical, etc.)

✓ Increasing LNG-fueled ships due to stricter environmental regulations for vessels

✓ Increasing use of liquefied gases (LNG, hydrogen, etc.) aimed at promoting next-generation energy

✓ Use the Nikkiso Group’s global production and sales network

✓ Provide after-sales services, ACD’s forte, across the globe

✓ Expand the product lineup for LNG-fueledships

✓ Work with Nikkiso Cryo, Inc. (based in Las Vegas), which has an advantage in FSRU

Cryoquip

✓ Supplying vaporizers for industrial gas and LNG gasification

・Vaporizers

（Ambient, Electric, Water

Bath, Water Pot, Shell and

Tube, etc.）

✓ Growing demand due to the shift from coal-fired thermal power plants to LNG-fueled plants

✓ Growing demand for industrial gas vaporizers in Taiwan, China, etc.

✓ Increasing LNG receiving terminals and FSRUs

✓ Increasing LNG-fueled ships due to stricter environmental regulations for vessels slated to go into effect in 2020

✓ Use the Nikkiso Group’s global production and sales network

✓ Leverage Nikkiso’s track record to launch vaporizers for receiving terminals and FSRUs

✓ Strengthen products and sales targeting LNG-fueled ships

Cosmodyne✓ Providing plant engineering solutions for air

separation, gas generation, and liquefaction of natural gas

・Small LNG plants・Air Separation Plants

✓ Growing demand for peak shaving plants

✓ Growing demand for virtual pipelines

✓ Strengthen sales of small liquefaction and regasification plants in Asia and Central America

✓ Tap into replacement demand for peak shaving plants in the U.S.

Peak shaving plant: a facility that stores energy to be used during periods of peak demandVirtual pipeline: a gas transport network that distributes gas, via LNG trailers and other means of transportation, to locations not equipped with pipelines

FSRU：floating storage and regasification unit


(For Reference) LNG-related Markets

●Increasing LNG-fueled ships

Fuel gas supply system（FGSS)

✓ The number of LNG-fueled ships is expected to increase in anticipation of the implementation of SOx emissions

regulations slated for 2020 and CO2 emissions regulations slated for 2025.

✓ The number of LNG-fueled ships will reach 500 by 2020, with 121 ships currently in operation, or 247 ships if you

include those for which orders have been placed.

Source: DNV GL

2020: Limit on SOx emissions from exhaust - To 0.5% or lower

from 3.5% or lower

2020: CO2 emissions regulations for new shipbuilding - To 20% reduction from 10%

2025: To 30% reduction from 20%

Regulations for preventing air pollution Regulations for curbing global warming

Financial results for FY2018 Financial Summary - …E)FY2018_78th_4q...2019/02/19 · Nikkiso’s basic capital policy is to secure sustainable growth and to improve the Company’s

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