Financial results for FY2018 Q2 Financial Summary Aug. 10, 2018 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.
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Financial results for FY2018 Q2
Financial Summary
Aug. 10, 2018
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.
Total investment (planned): ¥17 billion*by the end of 2021
-Aerospace plant + administrative building: ¥11.2 bn-Industrial and other business: ¥4.5 bn-Land: ¥1.3 bn
Aims of the new plant
◆ Schedule
The new plant is intended to expand productivity, yield advanced technologies and optimize manufacturing, and ultimately establish a company-wide quality control system.
Aerospace plant starts
operation
Autumn 2018
Construction of
cryogenic pump test
facilities
Cryogenic pump
plant starts operation
Establishment of quality
control system and of
development with advanced
technologies in all business
fields
2021202020192018
Phase I of construction work of Miyazaki plant completed at the end of July 2018
2. Consolidated performance 3. Revenue Composition ratio by Product
Millions of JPY
✓ The petroleum and natural gas markets are expected to recover and expand as evidenced by a rise in crude oil prices and a worldwide expansion in the LNG market both from supply and demand perspectives. This increased orders received by LEWA and CI Group, which thus are on a recovery track.
✓ In domestic pump business, cryogenic pump business for LPG facilities demonstrated strong performance, which improved the performance of overall industrial business.
✓ In power plant business, inquiries about water-conditioning system for Southeast Asia were on an increasing trend. We will strive for a steady increase in orders received in the second half of FY2018.
✓ Due to an expansion in usage of electronic components, investment in the relevant manufacturing industry is buoyant, which considerably increased orders received of the new warm isostatic laminator.
2. Consolidated performance 3. Revenue Composition ratio by Product
2. Consolidated performance 3. Revenue Composition ratio by Product
Millions of JPY
✓ Although a partial decline in cascade demand continued from FY2018 Q1 and slightly reduced revenue compared to the initial plan, business saw an increase in revenue year-on-year due to steady growth in shipments of items produced at the first plant in Hanoi, Vietnam.
✓ We will implement the growth strategy for further profitability by re-establishing the production system including the new plant in Miyazaki to be put into operation this autumn and the second plant in Hanoi, Vietnam, to be completed this autumn.
2. Consolidated performance 3. Revenue Composition ratio by Product
1. Overview
Millions of JPY
✓ In the hemodialysis-related business, the demand for hemodialysis equipment recovered in the domestic market, which led to an increase in sales of disposables such as blood tubing lines.
✓ In overseas markets, sales of knock-down kits continued strong in China, and sales grew in Asia, which led to an increase in revenue and profit year-on-year in the hemodialysis-related business as a whole.
✓ In the CRRT business, temporary expenses were posted to restructure the development system. However, strong sales of equipment in our mainstay Chinese market made up for slow sales in other countries, which led to an increase in revenue year-on-year.