FY2019 Financial Results FY2020 ForecastsCash and deposits 14,886 14,038 -847 Notes and accounts...

FY2019 Financial Results and

FY2020 Forecasts

May 28, 2020

－1－

© All rights reserved by Asahi Diamond Industrial Co., Ltd.

Contents

１. FY2019 Financial Results

２. FY2020 Forecasts

－2－


Financial Results(Consolidated)

*Revised forecast figures were announced on February 6, 2020.

■Operating profit (YoY change)

Increase factor・Decrease in personnel expenses 1,061 Mill Yen

Reduction factor3,798 Mill Yen・Decrease in profit due to

lower sales and other factors.

(Millions of Yen)

Results ％Revised

forecasts*％ Results ％ YoY change

YoY change

(％)

41,046 100.0 35,650 100.0 35,304 100.0 -5,741 -14.0

2,563 6.2 330 0.9 294 0.8 -2,268 -88.5

3,108 7.6 680 1.9 591 1.7 -2,516 -81.0

2,321 5.7 670 1.9 -340 -1.0 -2,661 -

41.76 - 12.07 - -6.13 - -47.89 -

FY2019

Operating profit

Ordinary profit

FY2018

Net sales

Profit attributable to

owners of parent

Earning per share (Yen)

45,459

4,750

42,024

2,645

45,458

4,640

41,046

2,563

35,304

2940

10,000

20,000

30,000

40,000

50,000

FY2015 FY2016 FY2017 FY2018 FY2019

Amount

(Millions of Yen) Net sales/Operating profit

Net Sales Except Electroplated Diamond Wire Electroplated Diamond Wire Sales Operating income

－3－


Quarterly Results of Operation(Consolidated)

(Millions of Yen)

First quarter Second quarter Third quarter Fourth quarter

Results ％ Results ％ Results ％ Results ％

9,396 100.0 9,106 100.0 8,613 100.0 8,188 100.0

148 1.6 -62 -0.7 217 2.5 -9 -0.1

180 1.9 19 0.2 330 3.8 61 0.8

176 1.9 160 1.8 363 4.2 -1,041 -12.7

FY2019

Profit attributable to

owners of parent

Net sales

Operating profit

Ordinary profit

9,3969,106

8,6138,188

0

2,500

5,000

7,500

10,000

FY20191Q

FY20192Q

FY20193Q

FY20194Q

Net sales

(Millions of Yen)Net sales

Net Sales Except Electroplated Diamond Wire Electroplated Diamond Wire Sales

148

-62

217

-9

1.6

-0.7

2.5

-0.1

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

-100

-50

0

50

100

150

200

250

FY20191Q

FY20192Q

FY20193Q

FY20194Q

Operating profit ratio

(％)Operating profit

(Millions of Yen)Operating profit

Operating profit Operating profit ratio

－4－


Net Sales Breakdown by Industry(Consolidated)

注）修正予想は2020年2月6日発表数字

44.3% 43.6% 42.4%33.2% 32.2%

18.6% 20.2% 20.5%24.2% 24.8%

20.6% 21.0% 21.7% 25.6% 25.4%

12.2% 11.4% 11.8% 12.6% 12.8%

4.3% 3.8% 3.6% 4.4% 4.8%

0%

20%

40%

60%

80%

100%

FY2015 FY2016 FY2017 FY2018 FY2019

Other

Stone andConstruction

Machinery

Transportation

Electronics andSemiconductor

Composition ratio

(Millions of Yen)

Results ％Revised


YoY change

(％)

13,626 33.2 11,440 32.1 11,384 32.2 -2,242 -16.5

9,955 24.2 8,800 24.7 8,757 24.8 -1,198 -12.0

10,508 25.6 9,100 25.5 8,974 25.4 -1,533 -14.6

5,158 12.6 4,560 12.8 4,504 12.8 -654 -12.7

1,796 4.4 1,750 4.9 1,683 4.8 -112 -6.3

41,046 100.0 35,650 100.0 35,304 100.0 -5,741 -14.0


FY2019

Total

FY2018

Electronics and Semiconductor

Transportation

Machinery

Stone and Construction

Other

－5－


Net Sales Breakdown by Industry : 1. Electronics and Semiconductor

【Full-year】【Quarter】

20,133

18,32319,257

13,626

11,384

0

5,000

10,000

15,000

20,000

25,000

FY2015 FY2016 FY2017 FY2018 FY2019

Net sales

(Millions of Yen)

3,923

3,4073,286

3,009 2,908 2,876 2,8772,721

0

1,000

2,000

3,000

4,000

FY18 1Q FY18 2Q FY18 3Q FY18 4Q FY19 1Q FY19 2Q FY19 3Q FY19 4Q

Net sales

(Millions of Yen)

－6－


Net Sales Breakdown by Industry : 1. Electronics and Semiconductor (Except Electroplated Diamond Wire)

Semiconductor & Electronic ComponentsSales of the related tools decreased due to the reduced production of memory devices and sensors.

ＦＰＤSales of the related tools decreased due to the reduced production at major customers.

Wire Drawing DiesSales of the dies for both bonding and saw wires decreased.


10,185 9,934

11,050 11,012

9,874

0

2,500

5,000

7,500

10,000

12,500

FY2015 FY2016 FY2017 FY2018 FY2019

Net sales

(Millions of Yen)

2,770 2,802 2,867

2,572 2,504 2,471 2,5172,381

0

1,000

2,000

3,000


Net sales

(Millions of Yen)

－7－


Net Sales Breakdown by Industry : 2. Transportation

AutomobileSales of the related tools decreased due to the global decline of the automobile productionin China, India, and other countries.

AircraftSales of the related tools increased due to the increased aircraft production.


8,439 8,481

9,3009,955

8,757

0

2,500

5,000

7,500

10,000

12,500

FY2015 FY2016 FY2017 FY2018 FY2019

Net sales

(Millions of Yen)

2,484 2,4772,584

2,409 2,457

2,235

2,049 2,014

0

500

1,000

1,500

2,000

2,500

3,000


Net sales

(Millions of Yen)

－8－


Net Sales Breakdown by Industry : 3. Machinery

BearingSales of the related tools decreased due to the reduced production of bearings for theautomobile and industrial machinery industries.

Cemented Carbide ToolSales of the related tools decreased due to the reduced production of domestic cementedcarbide tools.


9,3688,805

9,88410,508

8,974

0

2,500

5,000

7,500

10,000

12,500

FY2015 FY2016 FY2017 FY2018 FY2019

Net sales

(Millions of Yen)

2,634 2,680 2,686

2,5072,400

2,2752,179 2,119

0

500

1,000

1,500

2,000

2,500

3,000


Net sales

(Millions of Yen)

－9－


Net Sales Breakdown by Industry : 4. Stone and Construction

MiningSales of the related tools decreased due to the sluggish overseas sales.

Construction in JapanAlthough public works were slow, sales of the related tools for demolition work remained steadydue to an increased orders for dismantling tools.

Commercial Product (Portable Cutter)Sales to major overseas customers decreased.


5,541

4,818

5,3535,158

4,504

0

2,000

4,000

6,000

FY2015 FY2016 FY2017 FY2018 FY2019

Net sales

(Millions of Yen)

1,2041,304

1,3551,294

1,2311,156 1,121

994

0

500

1,000

1,500


Net sales

(Millions of Yen)

－10－


Net Sales Breakdown by Geographical Region(Consolidated)

JapanDecreased sales in major industries.

TaiwanDecreased sales of electroplated wires.

ChinaDecreased sales in transportation and machineryindustries.Decreased sales of electroplated wires.

43.1% 45.0% 45.0%51.7% 54.1%

9.7% 9.6% 9.9%8.6% 7.7%16.0% 15.7% 16.9% 9.5% 8.2%

15.1% 14.0% 13.3% 13.7% 14.4%

10.5% 10.2% 9.0% 9.8% 9.1%

5.6% 5.5% 5.9% 6.7% 6.5%

0%

20%

40%

60%

80%

100%

FY2015 FY2016 FY2017 FY2018 FY2019

Other

Europe

Asia and Oceania

China

Taiwan

Japan

Composition ratio

(Millions of Yen)

Results ％Revised


YoY change

(％)

21,220 51.7 19,240 54.0 19,098 54.1 -2,122 -10.0

Taiwan 3,519 8.6 2,740 7.7 2,722 7.7 -797 -22.7

China 3,897 9.5 2,950 8.3 2,883 8.2 -1,014 -26.0

Other Asia and Oceania 5,641 13.7 5,220 14.6 5,076 14.4 -565 -10.0

Europe 4,006 9.8 3,190 8.9 3,224 9.1 -781 -19.5

Other 2,760 6.7 2,310 6.5 2,299 6.5 -460 -16.7

19,825 48.3 16,410 46.0 16,206 45.9 -3,618 -18.3

41,046 100.0 35,650 100.0 35,304 100.0 -5,741 -14.0


FY2019

Overseas total

Total

Japan

FY2018

－11－


「Electroplated Diamond Wire」 Sales Trend (Consolidated)

FY2019

・For PV production : Sales decreased.

・For other : Sales decreased for sapphire. Sales increased for semiconductors.

1,653

2,042

2,232 2,277

1,153

604

418 437 404 405 360 340

0

500

1,000

1,500

2,000

2,500

3,000

Ｑ１Ｑ２Ｑ３Ｑ４Ｑ１Ｑ２Ｑ３Ｑ４Ｑ１Ｑ２Ｑ３Ｑ４

(Millions of Yen) Quarterly transition

Other

Semiconductor

Sapphire

Solar cell

FY2017 FY2018 FY2019

8,206

2,614

1,510

0

2,000

4,000

6,000

8,000

10,000

FY2017 FY2018 FY2019

Transition by FY(Millions of Yen)

－12－


Consolidated Balance Sheets

(Millions of Yen)

2019/3 2020/3 Change 2019/3 2020/3 Change

Assets Liabilities

Cash and deposits 14,886 14,038 -847Notes and accounts

payable-trade1,563 1,317 -245

Notes and accountsreceivable-trade

11,255 9,325 -1,930 Income taxes payable 93 171 +78

Inventories 6,621 5,978 -643Net defined

benefit liability7,779 7,527 -251

Property, plant andequipment

21,576 23,644 +2,068 Other 4,583 4,157 -425

Intangible assets 143 195 +51 Total liabilities 14,019 13,174 -845

Investment securities 13,526 10,301 -3,224 Net assets

Other 5,038 6,523 +1,484 Total net assets 59,028 56,833 -2,194

Total assets 73,047 70,007 -3,040 73,047 70,007 -3,040Total liabilities andnet assets

－13－


Consolidated Statements of Cash Flows(Millions of Yen)

FY2018 FY2019 Change

3,303 86 -3,217

2,497 2,641 +144

- 639 +639

1,345 1,906 +561

-38 639 +677

-1,517 -245 +1,271

-1,141 -861 +279

4,449 4,805 +356

-3,839 -5,556 -1,717

-1,134 708 +1,843

-170 -142 +27

-5,144 -4,990 +153

-150 5 +156

-613 -675 -61

-149 -62 +86

-914 -732 +181

16,548 15,685 -863

Other

Cash and cash equivalents at end of period

Net cash provided by (used in) financing activities

Profit before income taxes

Depreciation

Impairment loss

Decrease (increase) in notes and accounts receivable – trade

Decrease (increase) in inventories

Income taxes paid

Other

Net cash provided by (used in) operating activities

Purchase or sales of property, plant and equipment

Purchase or sales of investment securities

Other

Net cash provided by (used in) investing activities

Purchase or sales of treasury shares

Cash dividends paid

－14－


Capital Expenditures Results

Investment amount in plant and equipment

FY2019 includes the cost of machinery and construction of the new factory in Chiba.

Capital expenditure Depreciation

2,300 2,295

4,287

5,328

0

2,000

4,000

6,000

8,000

FY2016 FY2017 FY2018 FY2019

(Millions of Yen)

3,3003,111

2,4522,578

0

1,000

2,000

3,000

4,000

5,000

FY2016 FY2017 FY2018 FY2019

(Millions of Yen)

－15－


２. FY2020 Forecasts

Contents

１. FY2019 Financial Results

－16－


FY2020 Consolidated Earnings Forecasts

○As it is difficult to estimate the reasonable impact of the COVID-19 pandemic at this point in time, we are unable to determine any forecast. We will announce the consolidated forecast promptly after it becomes possible.

.

This presentation contains forward-looking statements and plans, which based on current available information and assumptions we believe to be reasonable.These forward-looking statements involve various factors, and Asahi Diamond’s actual results could be materially different from those mentioned on these forward-looking statements.

FY2019 Financial Results FY2020 ForecastsCash and deposits 14,886 14,038 -847 Notes and accounts...

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