Explanation of Financial Results
for the Year Ended 31 March 2024
May 13, 2024

Summary of Financial Results
for the Year Ended 31 March 2024

Summary [Consolidated Statements of Income]
•
•
•
•
•
•

In the electronics and functional products business, shipments of products for semiconductors and electronic
components declined due to the sluggish electronics market since the second half of the year before the last.
In the films and sheetings products business, shipments of products for license plates increased due to arecovery in automobile sales in Europe, the US and China.
In the construction materials related business, profitability improved due to price revisions in response to rising
raw material prices.
In the engineering business, sales fell due to a decline in the number of orders and delays in completion.
As a result of the above, incomes and profits declined year-on-year.
Current net profit increased, despite the recording of impairment losses on fixed assets in the films andsheetings products business, due to the recording of an extraordinary gains in connection with a court ruling on
an appeal against a claim for damages for patent infringement.
Unit: Million yen

Year ended March
31, 2023

Year ended March
31, 2024

Year-on-year comparison

Results

Results

Year-on-year changes Year-on-year changes(amount)(percentage)

44,00843,231

▲ 777

▲1.8%

Operating profit

1,261

849

▲ 412

▲32.7%

Operating profit/
net sales

2.9%

2.0%

Ordinary profit

1,902

1,573

▲ 329

▲17.3%

Current net profit

332

999

667

+200.8%Net sales

ー ▲ 0.9 point3

Quarterly performance trends• Sales declined YoY in 1Q/2Q, but increased in 3Q/4Q• Operating profit decreased YoY until 3Q, but increased in 4Q

Unit: Million yen

4Analysis of factors leading to changes in operating profit
FY2023 v.s. FY2024
YOY decline in profit of 412 million yen
Unit: Million yen

5Performance by segment
Unit: Million yen

Electronics andFunctional Products

Films and Sheetings
Products

Construction
Materials RelatedYear ended
March 31, 2023

Year ended
March 31, 2024

Results

Results

Operatingprofit18,128
1,458
16,603
143
7,589
258
5,084
52

Net sales
OperatingprofitNet sales
OperatingprofitNet sales
OperatingprofitNet sales
OperatingprofitNet sales

Engineeing

Consolidated
adjustment amount

Consolidated
total amount

Net sales
OperatingprofitYear-on-year comparison
Year-on-year changes(amount)

Year-on-year changes(percentage)

16,545643
17,498
655
7,112
272
2,491
▲ 136

▲ 1,582

▲8.7%

▲ 815

▲55.9%

895

+5.4%

512

+357.1%

▲ 476

▲6.3%

13

+5.4%

▲ 2,593▲51.0%▲ 188-▲ 3,396

▲ 416

2,980

-

▲ 653

▲ 586

67

-

44,0081,261

43,231
849

▲ 777

▲1.8%

▲ 412

▲32.7%

6

Situation by segment
Electronics & Functional Products Business
Unit: Million yen

Net sales
Functional
chemicals
Functional
polymers
Electricmaterials
Adjustment

Operating profit

Year ended
March 31, 2023

Year ended
March 31, 2024

Results

Results

Year-on-year comparison
Year-on-yearchanges (amount)

Year-on-yearchanges(percentage)

18,128 16,545 ▲ 1,582 ▲8.7%
3,603

2,913 ▲ 690 ▲19.2%

8,340

8,290

6,184

5,341 ▲ 843 ▲13.6%

0

1,458

0

▲ 50 ▲0.6%--643 ▲ 815 ▲55.9%

Functional Chemicals Decreased incomes and profits－

Shipments of products for semiconductors and electronic components declined due to the slump in the electronics
market since the second half of the year before last.

Functional Polymers Decreased incomes and Increased profits－

Shipments of products for electronic components declined due to the slump in the electronics market since the second
half of the year before last.

＋Positive impact on profit and loss due to price revisions in response to higher raw material prices.

Electric Materials Decreased incomes and profits－

Shipments of high-value-added products for electronic components such as PCs, servers and telecommunications
equipment declined.

－

Shipments of die cleaning materials for semiconductors declined due to the slump in the electronics
market since the second half of the year before last.

7

Situation by segment
Films & Sheetings Products Business
Unit: Million yen

Net salesYear ended
March 31, 2023

Year ended
March 31, 2024

Results

Results

Year-on-year comparison
Year-on-yearchanges (amount)

16,603 17,498

Year-on-yearchanges(percentage)

895 +5.4%

Films

1,445

1,330 ▲ 115 ▲8.0%

Stickers

6,269

6,515

246 +3.9%

8,888

9,652

764 +8.6%

1

0

143

655

Retroreflective
sheetings
Adjustment

Operating profit--

512 +357.1%

Films Decreased incomes and profits－

Shipments of products for the automotive sector declined due to a slow digestion of inventory in circulation, despite arecovery in global vehicle production.

Stickers Increased incomes and Decreased profits＋－

Shipments of products for motorcycles increased due to higher motorcycle production in Brazil and Indonesia
Shipments of 3D emblems for motorcycles declined due to decline in motorcycle production in Vietnam

Retroreflective Sheetings Increased incomes and profits＋

Shipments of products for license plates increased due to a recovery in automobile sales in Europe, the US and China.

8

Situation by segment
Construction Materials Related Business

Unit: Million yen

Net sales
Operating profit

Year ended
March 31, 2023

Year ended
March 31, 2024

Results

Results

Year-on-year comparison
Year-on-yearchanges(amount)

Year-on-yearchanges(percentage)

7,589

7,112

▲ 476 ▲6.3%

258

272

13 +5.4%

Decreased incomes and Increased profits－ Sales of aluminum building materials declined due to a decrease in the number ofhousing construction project＋ Positive impact on profit and loss due to price revisions in response to higher raw
material prices

9Situation by segment Engineering Business
Unit: Million yen

Year ended
March 31, 2023

Results
Net sales

5,084

Operating profit

52

Year ended
March 31, 2024

Results

Year-on-year comparison
Year-on-yearchanges(amount)

Year-on-yearchanges(percentage)

2,491 ▲ 2,593 ▲51.0%
▲ 136

▲ 188

-

Decreased incomes and profits－ Decrease in sales due to a decline in the number of construction projects for Group
companies.

－ Decrease in sales due to delays in the completion of construction projects for the steel
sector.

10

[Summary] Consolidated balance sheets
Unit: Million yen

Year ended March 31, 2023

Year ended March 31, 2024

End-to-end ratio

Cash and deposits

10,906

13,442

2,536

Notes and accounts receivable - trade

12,211

12,526

314

9,955

9,368

▲ 586

26,29324,004▲ 2,289

Other

2,473

1,680

▲ 793

Total assets

61,83861,020▲ 817

11,861

11,491

▲ 369

5,912

5,537

▲ 375

10,978

9,368▲ 1,61028,751

26,396▲ 2,355

23,78923,996

206

Accumulated other comprehensive income

7,441

8,634

1,192

Non-controlling interests

1,854

1,992

138

Total net assets

33,086

34,623

1,537

Total liabilities and assets

61,83861,020

▲ 817

0.38

0.35

▲ 0.03Equity capital

31,231

32,6301,399

Equity ratio

50.5%

53.5%

3.0 points

Inventory
Tangible fixed assets/intangible fixed assets

Interest-bearing liabilities
Notes and accounts payable - trade
Other

Total liabilities
Shareholders' equity

D/E ratio

11Consolidated statements of cash flows
Free cash flow was 2,935 million yen
Unit: Million yen

Year ended March 31, 2023

Year ended March 31, 2024

Year-on-year comparison

Profit before income taxes

1,221

1,797

576

Depreciation

1,991

2,014

22

791

422

▲ 369

▲ 397

1,140

1,537

Cash flows from operating actiities

3,606

5,373

1,766

Cash flows from investing actiities▲ 2,147▲ 2,437

▲ 289

1,458

2,935

1,477

▲ 2,508

▲ 303

2,205

Dividends paid

▲ 563

▲ 611

▲ 47

Other

▲ 144

▲ 350

▲ 206

▲ 3,215▲ 1,264

1,951

Effect of exchange rate change on cash and cash equivalents

740

564

▲ 175

Net increase (decrease) in cash and cash equivalents▲ 1,016

2,235

3,251

9,821

12,0572,235

Net cash provided by (used in) operating activities

Other

Free cash flows
Net increase (decrease) in borrowings

Cash flows from financing actiities

Cash and cash equivalents at end of period

12Capital investment, depreciation and R&D
As a result of a review of the capital investment plan in line with changes in the businessenvironment, particularly in the electronics strategic market, capital investment decreased by
1,857 million yen compared to the previous year.
Unit: Million yen

Capital investment

Year ended
Year ended
March 31, 2023 March 31, 2024

Year-on-yearcomparison

3,181

1,324

▲ 1,857

735

320

▲ 415

Films and sheetings products

2,458

755

▲ 1,703

Construction materials related

65

40

▲ 25

Engineering

26

30

4

▲ 103

177

280

1,991

2,014

23

Electronics and functional products

746

718

▲ 27

Films and sheetings products

619

692

73

Construction materials related

126

112

▲ 13

55

56

1

Common/adjustment

444

434

▲ 10

R&D expenditure

2,106

2,113

7

Capital investment
Electronics and functional products

Common/adjustment

Depreciation

Engineering

Major capital investment
projects•••

Introduction of researchand development testing
facilities
Introduction of researchcore system for DX
promotion
Upgrading of analysis
equipment for engineering
projects* Capital expenditure is the amountcapitalized as of the time when equipment,
etc. is inspected and received. The amountof expenditure on the acquisition of tangible
fixed assets in the cash flows from investing
activities is the amount as of the time when
the funds for equipment, etc. inspected andreceived were actually paid, which causes a
difference.

13

Forecast of full-year results
for the year ending 31 March 2025

Forecast of consolidated results for the year ending
31 March 2025
The sales forecast is 50.0 billion yen, an increase of +15.7% on the previous year,
and the operating profit forecast is 2.1 billion yen, an increase of +147.3% on theprevious year.
Unit: Million yen
Year ended March 31, 2024 Year ended March 31, 2025
Results

43,231

Net sales
OperatingprofitOrdinary profit
Current net
profitDividend per
share

ProfitmarginPerformance
forecasts-

50,000

ProfitmarginーYear-on-year changes
Year-on-year changes(amount)

Year-on-year changes(percentage)

6,769+15.7%

849 2.0%

2,100 4.2%

1,573 3.6%

2,200 4.4%

627

+39.9%

999 2.3%

1,000 2.0%
40yen
ー
40yen
ー

1

+0.1%

0円

+0.0%

Interim

30yen

Year end

50yen *

ーー

1,251 +147.3%* Including special dividend of 15 yen

Annual ordinary dividend of 80yen per share is planned for the fiscal year ending March 31,
2025.
The shareholder return policy aims to maintain a stable dividend with a payout ratioof at least 30%.
15

Analysis of factors leading to changes in operating profit
FY2024 vs FY2025
Increase in profit of 1,251 million yen
compared to the previous year

Unit: Million yen

16Business outlook by segment

Electronics
andFunctional
Products

Films and
Sheetings
Products

Functional
chemicals＋

Increase in shipments due to recovery in semiconductor andelectronic component markets

Functional
polymers＋

Increase in shipments of adhesives for optical-related fields due tosales expansion in the Chinese market

Electric materials＋

Increase in shipments due to recovery in semiconductor andelectronic component market

Films

＋

Increase in shipments of next-generation high-functional films due
to continued recovery in global automobile sales

Stickers＋

Increase in shipments of products for motorcycles due to higher
motorcycle production in Indonesia

Retroreflective
sheetings＋

Increase in shipments of products for license plates due tocontinued recovery in global automobile sales

Construction－ Higher raw material costs due to soaring aluminum ingot prices
Materials
RelatedEngineering＋ Increase in sales due to completion of large construction projects

17Forecasts by segment
Unit: Million yen

Year ended March Year ended March
31, 2024
31, 2025
Performance
Results
forecasts
Electronics andFunctional Products

Films and Sheetings
Products

Construction
Materials Related

Net sales
OperatingprofitNet sales
OperatingprofitNet sales
OperatingprofitNet sales

Engineeing

OperatingprofitConsolidated
adjustment amount

Net sales
OperatingprofitConsolidated total
amountNet sales
OperatingprofitYear-on-year changes
Year-on-year changes(amount)

Year-on-year changes(percentage)

2,555+15.4%

457+71.1%

2,502+14.3%

745+113.7%

288

+4.0%

▲ 222

▲81.6%

1,509+60.6%

416-

16,545643
17,498
655
7,112
272
2,491
▲ 136

19,100
1,100
20,000
1,400
7,400
50
4,000
280

▲ 416

▲ 500

▲ 84

-

▲ 586

▲ 730

▲ 144

-

43,231849

50,000
2,100

6,769
1,251

+15.7%+147.3%18

State of Progress of Medium-term Management Plan
“NCI KIRARI 2025”

State of Progress Financial Targets
We will try to achieve our FY2024 performance forecasts and return to a growthtrajectory by ensuring that the key issues are addressed, but the achievement of the
FY2025 financial targets may be delayed, depending on the timing of market
recovery and other factors.
D/E Ratio

0.5 times of less

Unit: Times

12% or more

ROE

●Net sales
Unit: 1 billion yen■Operating
profit20

State of Progress Strategic market sector Sales
Unit: 1 billion yen

21

State of Progress Strategic market sector Operating profit
Operating profit in strategic market sector in FY2024 is forecast to be 2.8 billion yen.
The key to achieving the operating profit target for FY2025 is (i) further expansion ofoperating profit in strategic market sector, and (ii) performance improvement bystrengthening the structure of non-strategic market sector.
Unit: 1 billion yen

22Major challenges and actions
Segment
Electronics
andFunctional
Products

Films and
Sheetings
Products

SectorActions to be taken towards 2025

Strategic
market Sector• Expanding sales of high value-added products,• Identifying new needs through technicalmainly chemicals for semiconductor materials.
exchange with customers.
• Expanding sales of semiconductor mold cleaning• Responding to market expansion bymaterials and other products in the Chinese market.
strengthening the customer support systemat the Chinese sites.

Non-strategic
market sector• Expanding sales of optical adhesives and otherproducts in the Chinese market.

Strategic
market Sector• Expanding new business with next-generation high- • Market launch of high performance
performance films.
products for the automotive, motorcycle• Expanding sales of products for number plates inand electronics sectors through multi-layer
the Japanese market
wide film production facilities.
• Improved quality and stable supply of
products for number plates

Non-strategic
market sector

Construction
Materials
RelatedMajor challenges• Expanding sales of reflective sheetings for thegraphics market in the USA.

• Strengthening the R&D back-up system inJapan and technical services in China.

• Collaboration with major distributors.
• Application to a wide variety of substrates
through improved adhesive performance

Strategic
market Sector• Expanding sales of high-strength, high-performance • Differentiation using product designs withhandrails for high-rise buildings.
high safety features on high-rise floors

Non-strategic
market sector• Expanding sales of carport products for EV• Adding value to products by exploring• Expanding sales of LED lighting products (handrails
customer needs
and copings) to shops and commercial facilities

Strategic
market Sector

Engineering
Non-strategic
market sector• Expanding business by capturing business
opportunities in carbon neutral transition.

• Promotion of response to customer needs
by utilising the powder conveying
technology developed over many years.

• Expanding EPC business (A business model
encompassing the entire project lifecycle, fromengineering and procurement to construction)• Strengthening co-operation with customers
by having engineers present on site at thefacilities.

23

Capital investment
Review capital investment plans in line with changes in the businessenvironment, particularly in relation to the electronics strategic markets

Major capital investment
reduction projects

Capital investment in strategic markets sector
Unit: 1 billion yen

•

•

•

Capital investment
in strategic
markets sector

11 billion yen

Capital investment inproducts forsemiconductors andelectronic components
Capital investment inreflective sheetings
products
Capital investment inproducts for construction
materials related products

7.8 billion yen
24Research and development
Plans for increasing both R&D expenditure and number of R&D personnel

Unit:
Number of
personnel

Unit:
1 billion yen

25Percentage of new product sales
Percentage of new product sales in strategic market sector was 30% in FY2023(3.7 billion yen). Aim for 31% (5.2 billion yen) in FY2024 and 35% or more (9.0billion yen) in FY2025.

Unit:
1 billion yen

26

Initiatives to achieve management with
an awareness of cost of capital and share priceEfforts to improve PBR (1)Recognizing that improving PBR is an important management issue, the company
will promote measures from both ROE and PER perspectives.

PBR

＝

ROE

×

PER

PBR improved from 0.4 in FY03/2023 to 0.54 in FY03/2024.
ROE⚫ Growing business by expanding sales of growth drivers and creating new growth drivers instrategic market areas.
⚫ Strengthening the structure of the core businesses with low profitability.
⚫ Improving capital efficiency through the sale of assets such as cross-shareholdings and the useof surplus funds at group companies.
⇒0.5 billion of policy shareholdings sold and 0.5 billion of surplus funds of group companies used forstrategic investments etc.

⚫ Considering using interest-bearing debt as needed while maintaining a sound financial structure.
⚫ Shareholder returns
・Continuing to pay stable dividends with a target payout ratio of 30% or more
⇒For FY2023, in addition to the ordinary dividend of 65yen per share, a special dividend of 15yen
per share will be paid.
・Share buy-back⇒In accordance with a resolution of the Board of Directors’ meeting held on 7 February 2024,
shares worth a total of 200 million yen were bought back between 8 February and 19 March.

28

Efforts to improve PBR (2)Recognizing that improving PBR is an important management issue, the company
will promote measures from both ROE and PER perspectives.

PBR

＝

ROE

×

PER

PBR improved from 0.4 in FY03/2023 to 0.54 in FY03/2024.
PER⚫ Growing business by expanding sales of growth drivers and creating new

growth drivers in strategic market areas.
⚫ Strengthening the structure of the core businesses with low profitability.
⚫ Promotion of sustainability management:- Promoting renewable energy use through solar power generation, etc.
- Contributing to carbon neutrality through engineering business- Investing in human capital with an awareness of diversity equity and inclusion

29

TOPICSTOPICS (1) Growth drivers
Development and sale of environmentally friendly decorative moulded products.

The 3D-emblem with a metallic sheen is one of our environmentally friendly
decorative moulded products. Furthermore, we have developed a new product thathas never existed before, using ‘light manipulation’ technology. It is used forautomobiles and motorcycles.

⚫ Internally illuminated 3D soft emblem
Before lighting. The metallic exterior gives a more luxurious
appearance.
When lit in the dark, it emits light from within.

⚫ Retroreflective 3D soft emblem
Before reflecting.
When light is shone on it, the incident light returns in the directionof incidence (retroreflection), increasing visibility.
31

TOPICS (2) Growth drivers
Vacuum packaging machine by Nishihara Manufacturing equipped with our noncontact operating device
Our M-Beamer non-contact operating device will be installed in the vacuum
packaging machines of Nishihara Manufacturing. As the operation panel is displayed
floating in the air, the operator can operate the machine with gloved hands without
directly touching the operation panel.

Thevacuumpackagingmachineequipped with our non-contact operating
device was unveiled during “Shimanami Pack2023”, an exhibition specializing in packaging
and related materials, facilities, equipment,
systems and services for the food industry(see photo).

32Annexed Materials

Transition of consolidated results
D/E Ratio
Unit: Times

ROE

Net sales

46,69942,23147,00344,00843,23150,000Operating profit

2,557

2,388

3,192

1,261

849

2,100

5.5%

5.7%

6.8%

2.9%

2.0%

4.2%

Ordinary profit

2,817

2,852

4,055

1,902

1,573

2,200

Ordinary profit/net sales%

6.0%

6.8%

8.6%

4.3%

3.6%

4.4%

Current net profit

1,741

2,406

1,930

332

999

1,000

Operating profit/net sales%

34

Shareholder Return Policy
Aims to maintain a stable dividend with a payout ratio of at least 30%.

SpecialDividend

Medium-term management
plan period

35For questions and inquiries from analysts/institutional investors,
please contact

Public Relations & Investor Relations Group
Corporate Planning Department
Please contact us via e-mail:prir@carbide.co.jp[Notes related to future prospects] This material is intended solely for the purpose of providing information to investors and is not asolicitation to buy or sell securities. Forward-looking statements in this material are based on targets and forecasts, and are notguarantees or assurances. Further, this material should be used with the understanding that future results may differ from theCompany’s current expectations. In addition, statements regarding the industry, etc., are based on various data that are believed to bereliable, but the Company does not guarantee their accuracy or completeness. This material is presented on the assumption thatinvestors use it for any purpose at their own discretion and responsibility, and the Company assumes no responsibility whatsoever.