JVCKENWOOD Corporation · TSE:6632
JVCKENWOOD — FY2019 Earnings Presentation
33 slides from JVCKENWOOD's earnings presentation, Apr 26, 2019
Slide 1: Results and Forecast Briefing, Fiscal Year Ended March 2019
Translation for Reference Only JVCKENWOOD Results and Forecast Briefing Fiscal Year Ended March 2019 April 26, 2019 JVCKENWOOD Corporation Copyright © 2019 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Notice
Notice JVCKENWOOD has applied International Financial Reporting Standards (IFRS) to replace Japanese Generally Accepted Accounting Principles (JGAAP), starting from the Consolidated Financial Statements in the Securities Report for the fiscal year ended March 2018. Accordingly, all figures for t
Slide 3: Business Domains
Business Domains Media Service Sector (MS) Others（2.7%） Media Business Automotive Sector (AM) • Solutions/Products video cameras, headphones, Aftermarket Business projectors, home audio, etc. • Car navigation systems • Car audio systems Entertainment Business Content/contract production 19.1%
Slide 4: Agenda: Overview of Financial Results for FYE3/'19
1. Overview of Financial Results for FYE3/’19 2. Full-year Earnings Forecast for FYE3/’20 3. Future Initiatives
Slide 5: 1. Overview of Financial Results for FYE3/'19
1. Overview of Financial Results for FYE3/’19 2. Full-year Earnings Forecast for FYE3/’20 3. Future Initiatives
Slide 6: Financial Results for FYE3/'19: Highlights
Financial Results for FYE3/’19: Highlights Revenue of the JVCKENWOOD Group as a whole increased, despite the impacts of a sales decline of the AM Sector in 4Q, due to a revenue increase of the PS Sector. Core operating income increased significantly, despite a profit decline of the AM Sector, du
Slide 7: FYE3/'19: Trends in Quarterly Results
Financial Results for FYE3/’19: Trends in Quarterly Results Core Operating Revenue Income (Billion yen) (Billion yen) FYE3/’18 FYE3/’19 100.0 1,000 5.0 50 83.7 80.9 80.0 800 75.5 76.5 77.6 4.0 40 72.6 72.6 68.9 600 3.9 2.9 3.0 30 60.0 2.5 Revenue 2.3 40.0 400 1.2 2.0 20 1.3 0.9 20.0 200 1.0 10 Core
Slide 8: FYE3/'19: Results by Sector
Financial Results for FYE3/’19: Results by Sector （Billion Yen） FYE3/’18 FYE3/’19 YoY Change YoY Change Factors (Amount) (Percentage) * Revenue of the AM Sector as a whole decreased, due to the impacts of a sales decline in OEM, a Revenue 171.4 169.5 -1.9 -1.1% supply problem at a parts supplier tha
Slide 9: Consolidated Revenue (by Sector)
Financial Results for FYE3/’19 : Consolidated Revenue (by Sector) (Billion yen) Consolidated Revenue (by Sector) 3,200 320.0 ＋3.1 +5.9 -0.2 -1.9 MS Others 3,000 300.0 AM PS 307.6 2,800 300.7 280.0 0 2,600 FYE3/’18 FYE3/’19 9
Slide 10: Consolidated Results (AM Sector)
Financial Results for FYE3/’19 : Consolidated Results (AM Sector) Core Operating Revenue Income (Billion yen) (Billion yen) FYE3/’18 FYE3/’19 50.0 500 47.2 5.0 50 43.3 43.0 43.0 41.8 40.2 40.8 41.7 400 40.0 40 4.0 3.0 300 30.0 3.0 30 2.0 2.2 1.7 1.8 200 20.0 1.5 1.4 20 2.0 100 10.0 10 1.0 0 0 <Facto
Slide 11: Consolidated Results (PS Sector)
Financial Results for FYE3/’19 : Consolidated Results (PS Sector) Core Operating Revenue Income (Billion yen) (Billion yen) FYE3/’18 FYE3/’19 50.0 500 5.0 50 Professional Systems Communication Systems 400 40.0 40 4.0 300 30.0 3.0 30 19.0 21.3 200 20.0 16.4 16.2 17.4 17.5 20 2.0 13.4 14.7 1.8 100 10.
Slide 12: Consolidated Results (MS Sector)
Financial Results for FYE3/’19 : Consolidated Results (MS Sector) Core Operating Revenue Income (Billion yen) (Billion yen) FYE3/’18 FYE3/’19 50.0 500 5.0 50 Entertainment Media 40.0 400 4.0 40 300 30.0 3.0 30 200 20.0 16.3 15.7 20 2.0 14.0 14.2 14.5 13.6 14.6 150 100 0.8 0.7 10 1.0 10.0 0.4 0.5 0.1
Slide 13: Consolidated Revenue (by Region)
Financial Results for FYE3/’19 : Consolidated Revenue (by Region) (Billion yen) Consolidated Revenue (by Region) 3,200 320.0 +1.7 -2.4 +1.0 +0.6 Americas Europe Asia/ Others ＋6.1 China 3,000 300.0 Japan 307.6 2,800 280.0 300.7 00 2,600 FYE3/’18 FYE3/’19 13
Slide 14: Consolidated Revenue by Region
Financial Results for FYE3/’19 : Consolidated Revenue by Region Revenue (Billion yen) FYE3/’18 FYE3/’19 100.0 1,000 Others Asia/China Europe Americas 1.3 1.5 800 80.0 Japan 1.2 9.3 1.6 1.5 1.2 1.3 9.6 1.2 10.2 9.5 10.1 9.3 14.6 9.5 9.3 12.5 600 60.0 13.1 14.9 14.0 15.7 15.9 14.6 19.4 19.7 17.5 16.8
Slide 15: Consolidated Core Operating Income (by Sector)
Financial Results for FYE3/’19 : Consolidated Core Operating Income (by Sector) (Billion yen) Consolidated Core Operating Income (by Sector) 100 10.0 +0.３ ＋1.8 80 8.0 Others MS +2.1 6.0 60 AM PS 40 4.0 -2.0 8.6 6.3 2.0 20 0 FYE3/’18 FYE3/’19 15
Slide 16: Consolidated Profit/Loss (Summary)
Financial Results for FYE3/’19 : Consolidated Profit/Loss (Summary) Operating profit increased, despite a decrease in gains on sales of assets and the recognition of an impairment loss. Profit before income taxes increased, reflecting the increase in operating profit. Profit attributable to ow
Slide 17: Consolidated Statement of Financial Position Summary
Financial Results for FYE3/’19 : Consolidated Statement of Financial Position Summary （Billion yen) FYE3/’18 3Q FYE3/’19 YoY Change Total Assets 239.9 250.6 +10.7 Total Liabilities 186.1 185.3 -0.8 Total Equity 53.8 65.3 +11.5 Interest-Bearing Debts 67.8 71.3 +3.5 Net Debt 30.7 30.5 -0.2 Net Debt/Eq
Slide 18: Cash Flow Summary
Financial Results for FYE3/’19: Cash Flow Summary Net cash provided by operating activities increased, reflecting the increase in profit before income taxes. Net cash used in investing activities increased, due to a decrease in cash inflows from sales of non-current assets, increase in developme
Slide 19: 2. Full-year Earnings Forecast for FYE3/'20
1. Overview of Financial Results for FYE3/’19 2. Full-year Earnings Forecast for FYE3/’20 3. Future Initiatives
Slide 20: Full-year Earnings Forecast for FYE3/'20
Full-year Earnings Forecast for FYE3/’20 Revenue is expected to increase slightly from the previous fiscal year, although revenue increases are expected for the PS Sector and the Media Business of the MS Sector, and revenue of the Telematics Business in Others is projected to double from the previ
Slide 21: Core Operating Income by Sector
Full-year Earnings Forecast for FYE3/’20 : Core Operating Income by Sector Core operating income for FYE3/’20 is expected to be at the same level as the previous fiscal year. AM Sector Core operating income is forecast to decrease, due to early termination of sales of existing products in the OE
Slide 22: 3. Future Initiatives
1. Overview of Financial Results for FYE3/’19 2. Full-year Earnings Forecast for FYE3/’20 3. Future Initiatives
Slide 23: Transforming the Business Portfolio to Achieve Targets Under Vision 2020
Transforming the Business Portfolio to Achieve Targets Under Vision 2020 Reflecting the fact that our profit/loss in FYE3/’18 weighed too heavily on the AM Sector, we reviewed Vision 2020 in January 2018 and decided to make well-balanced investments in each sector. As a result, the results for F
Slide 24: Toward Well-balanced Investments in Business Fields with Growth Prospects
Toward Well-balanced Investments in Business Fields with Growth Prospects AM Sector Make continuous investments to strengthen the in-vehicle device business and the OEM Business. PS Sector Make investments in professional system solutions and venture into new business fields in the Healthcare Bu
Slide 25: Future Initiatives: AM Sector
Future Initiatives: AM Sector Aftermarket OEM Further expand sales and accelerate the The current fiscal year is a transition overseas rollout of dual camera period in preparation for a large-scale dashcams with robust sales in Japan project for which an order has been through measures such as e
Slide 26: Future Initiatives: PS Sector
Future Initiatives: PS Sector Communication Systems Business Strengthen orders for P25-compliant Expand orders for radio console systems professional digital radio systems at by introducing desktop units at Zetron, EFJT, a Group’s US subsidiary. a US-based Group subsidiary. Expand orders for D
Slide 27: Future Initiatives: PS Sector
Future Initiatives: PS Sector Professional Systems Business Healthcare Business Promote turnaround and early recovery Expand global sales by enhancing the lineup of of business by accelerating the shift to image diagnostic monitor solutions, including 5M the high-end model market and monochrome
Slide 28: Future Initiatives: MS Sector
Future Initiatives: MS Sector Media Business (Lifestyle) Media Business (Solutions) Boost sales of headphones by expanding Expand share of the ENG* market by web-based sales channels and launching enhancing the lineup of CONNECTED new products. CAM™ series camcorders and boost Expand brand lic
Slide 29: Future Initiatives: MS Sector and Others
Future Initiatives: MS Sector and Others Entertainment Business DX Business Division *DX…Digital transformation As a total entertainment group, expand Commercialized security service for drivers business fields, such as management, live based on dashcam with communication event services, and sal
Slide 30: Management Reforms: Manufacturing Reforms Based on T-Project
Future Initiatives: Management Reforms from Manufacturing Reforms Based on T-Project Purposes Ensure achievement of the targets of Vision 2020 (ROE of 10%). Build a lean management base toward 2021 and thereafter. Issues faced by the Company A large loss cost and opportunity loss incurred
Slide 31: New Management Structure After This Year's Ordinary General Meeting of Shareholders
New Management Structure After This Year’s Ordinary General Meeting of Shareholders Shoichiro Takao Tsuji Yasuyuki Abe Masaki Imai Eguchi Representative External Director, Representative Director of the Director of the Chairman of the Director of the Board, Executive Board, Chairman Board Board, Pre
Slide 32: New Executive Officers, Effective April 1, 2019
New Executive Officers, Effective April 1, 2019 13 Executive Officers Shoichiro Masaki Masatoshi Masao Takuya Naokazu Eguchi Imai Miyamoto Nomura Arai Kurihara President, Chief Executive Vice Senior Managing Senior Managing Managing Managing Executive Officer President Executive Officer Executive
Slide 33: Forward-looking statements and risk factors
The expressions contained in this presentation referring to the Company's future plans, intentions and expectations are categorized as future forecast statements. Such statements reflect management expectations of future events, and accordingly, are inherently susceptible to risk, uncertainty and ot