Kanematsu Corporation · TSE:8020

Kanematsu — FY2019 Earnings Presentation

30 slides from Kanematsu's earnings presentation, May 16, 2019

  1. Slide 1: Overview of Results for FY2019

    Note: The forward-looking statements in this material, including plans, forecasts, and strategies of May 16, 2019 the Group, reflect judgments that the Company made based on information available at the time the material was prepared and include risks and uncertainties. Due to changes in the busines

  2. Slide 2: 1. Overview of results for FY2019

    １. Overview of results for FY2019 Copyright (C) 2018 KANEMATSU CORPORATION. All Rights Reserved. 2

  3. Slide 3: 1-1. FY2019 Highlight (P/L)

    1-1. FY2019 Highlight (P/L) ✔ Both revenue and profits increased. Profit before tax reached a record high. Year-on-year (Unit: billion yen) FY2018 FY2019 change Revenue 714.8 723.8 9.1 Gross profit 106.4 110.0 3.6 Operating profit 26.2 30.3 4.2 Finance income (costs) ( 1.7) ( 1.5) 0.2 Share of profi

  4. Slide 4: 1-2. FY2019 Highlight (Segment margin)

    1-2. FY2019 Highlight (Segment margin) ✔ Increased 4.2 billion yen driven by the Foods & Grain and Electronics & Devices segments. Electronics & Devices Increase in revenue and profit The ICT solutions business continued to perform solidly, mainly in business Billion yen Segment margin with the manu

  5. Slide 5: 1-3. FY2019 Highlight (B/S)

    1-3. FY2019 Highlight (B/S) ✔ The equity ratio rose due to the increase in retained earnings. FY2018 FY2019 FY2018 FY2019 (Unit: Billion yen) (Unit: Billion yen) results results results results Gross interest- Total assets 519.9 549.5 bearing debt 137.3 139.5 Shareholders' Net interest- Equity (Note

  6. Slide 6: 2. FY2020 forecast

    2. FY2020 forecast Copyright (C) 2018 KANEMATSU CORPORATION. All Rights Reserved. 6

  7. Slide 7: 2-1. FY2020 forecast

    2-1. FY2020 forecast ✔ Expected to increase in revenue and profit. FY2019 FY2020 (Unit: billion yen) Change result forecast Revenue 723.8 740.0 16.2 Operating Profit 30.3 31.0 0.7 Profit before tax 29.2 30.0 0.8 Profit for the year attributable to owners of the parent 16.6 17.0 0.4 Copyright (C) 201

  8. Slide 8: 2-2. FY2020 forecast (Segment margin)

    2-2. FY2020 forecast (Segment margin) ✔ The operating margin is expected to remain steady, with recovery of the energy business in the Steel, Materials & Plant segment. FY2019 FY2020 (Unit: billion yen) Change results forecast Electronics & Devices 18.5 18.5 0.0 Foods and Grain 4.0 4.0 0.0 Steel, Ma

  9. Slide 9: 2-3. FY2020 forecast (Subsegment margin)

    2-3. FY2020 forecast (Subsegment margin) Forecast for segment operating profit FY2020 FY2019 Change （unit: billion yen） forcast Profits are expected to remain 10.2 10.4 0.2 firm driven by transactions for ICT solutions the manufacturing and services Mobile 6.7 6.7 0.0 industries and educational Othe

  10. Slide 10: 2-4. FY2020 forecast (Dividend Policy)

    2-4. FY2020 forecast (Dividend Policy) ✔ The total return ratio is within the range of 25%-30%. Stable and continuous dividend payments are expected. ✔ An annual dividend payment of 60 yen is planned for FY2020. (Japanese Yen) After stock After stock ％ consolidation consolidation 14.0 60 yen dividen

  11. Slide 11: 3. Progress of future 135

    3. Progress of future 135 Copyright (C) 2018 KANEMATSU CORPORATION. All Rights Reserved. 11

  12. Slide 12: 3-1. Earnings Structure for Growth under future 135

    3-1. Earnings Structure for Growth under future 135 Under future 135, the Group aims to increase operating profit to approximately 45.0 billion yen through growth of fundamental businesses and new business investments. 50 45 45 Operating profit Growth Image Profit growth of approximately 10.0 40 bil

  13. Slide 13: 3-2 (1) Review of First Fiscal Year of future 135 (Fundamental Businesses)

    3-2 (1) Review of First Fiscal Year of future 135 (1) (Fundamental Businesses) Operating profit growth of 4.2 billion yen, driven by fundamental businesses FY2018 FY2019 (Unit: billion yen) Change results results Electronics & Devices 17.6 0.9 18.5 Foods and Grain 2.1 1.9 4.0 Steel, Materials & Plan

  14. Slide 14: 3-2 (2) Review of First Fiscal Year (New Business Investments)

    3-2(2) Review of First Fiscal Year of future 135 (2)(New Businesses Investments) Made new investments of approximately 8.0 billion yen in areas having expertise and strength. FY2019 Executed Projects Electronics & Made a card printer business company into a wholly （Japan） Devices owned subsidiary Es

  15. Slide 15: 3-3. future 135 New Business Investment Pipeline

    3-3. future 135 New Business Investment Pipeline The table below shows the pipeline of investments being considered over the remaining period of future 135. Investment Contents type (Japan) Expansion within ICT solutions market Expansion in scale (Japan) Expansion of mobile communications business E

  16. Slide 16: 3-4. future 135 B/S

    3-4 future 135 B/S ・Financial position is solid, with equity ratio of 22.8%, net D/E ratio of 0.4 times, and risk-asset ratio at 0.3 times level. ・Given that net cash provided by operating activities is 10-20 billion yen per year, a healthy financial balance can be maintained even if investments on

  17. Slide 17: 3-5. Strengthening of Governance Structure

    3-5. Strengthening of Governance Structure Changes to Management Structure  Increased efficiency of Board of Directors（8 Directors→6 Directors).  Promoted diversity through the appointment of a female Outside Director.  Expanded Executive Officers. （Growth of overseas business though increase in

  18. Slide 18: 3-6. Establishment of Management Infrastructure

    3-6. Establishment of Management Infrastructure Promotion of Work Style Reform  Annual vacation usage rate was 73.7% in FY2018, up 7.0% year on year.  Further enhanced “Bronze Week” System (*).  Introduced annual paid leave by the hour and flexitime system.  Enhanced childcare leave system, etc.

  19. Slide 19: Appendix

    Appendix Copyright (C) 2018 KANEMATSU CORPORATION. All Rights Reserved. 19

  20. Slide 20: Appendix 1-1. Consolidated Ordinary income (from FY1978)

    Appendix 1-1. Consolidated Ordinary income (from FY1978） Billion Yen 35.0 VISION future -130 135 29.2 30.0 26.0 Bankruptcy of 25.0 Lehman Brothers 20.0 The Gulf War 15.0 Structural reform plan 10.0 Reporting on a consolidated basis started 5.0 0.0 FY1978 FY1979 FY1980 FY1981 FY1982 FY1983 FY1984 FY1

  21. Slide 21: Appendix 1-2. Consolidated Net income (from FY2000)

    Appendix１-2. Consolidated Net income（from FY2000) Billion yen 25.0 Sold the last interests owned 19.0 VISION-130 future 135 20.0 17.3 16.6 Recorded deferred 16.3 tax assets 15.0 11.5 9.4 10.0 8.0 5.0 0.0 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY201

  22. Slide 22: Appendix 1-3. Shareholders' Equity & Equity Ratio

    Appendix１-３．Shareholdersʼ Equity & Equity Ratio Billion yen 140.0 25.0% 22.3% 22.8% Shareholder's Equity Equity ratio（right‐axis） 120.0 125.2 (Note:) Shareholderʼs equity = Total equity attributable to owners of the parent 116.0 20.0% 21.2% 20.9% 100.0 16.7% 19.6% 100.4 93.3 90.1 15.0% 80.0 71.7 13.

  23. Slide 23: Appendix 1-4. Interest-bearing debt & Net debt-equity ratio

    Appendix１-4. Interest-bearing debt & Net debt-equity ratio Billion yen Times 300.0 10.0 270.7 Gross interest-bearing debt 9.0 Net interest-bearing debt 250.0 Net debt-equity ratio (right-axis) 8.0 223.7 213.6 6.2 7.0 200.0 193.1 173.6 6.0 160.8 5.4 146.9 150.0 141.9 137.3 139.5 5.0 136.1 135.2 133.8

  24. Slide 24: Appendix 2. Outline of Kanematsu Group

    Appendix 2. Outline of Kanematsu Group Segment Main business Main products Major subsidiaries Semiconductor / electronics parts, Electronic modules / materials, Semiconductor Parts & Equipment Semiconductor Industrial electronics & Kanematsu Electronics Ltd. Electronics materials Printer equipment,

  25. Slide 25: Appendix 3. Subsidiaries and Affiliates (Revenue & Operating profit)

    Appendix３．Subsidiaries and Affiliates（Revenue & Operating profit） FY2018 FY2019 Ownership (Unit: billion yen) Business ratio Operating Operating Revenue Revenue profit profit Kanematsu Electronics Ltd ICT solution 58.28% 62.2 10.0 67.4 10.3 Kanematsu Communications Ltd. Mobile 100.00% 132.0 5.9 135.

  26. Slide 26: Appendix 4. Subsidiaries

    Appendix４．Subsidiaries Number of Profitable and Non-Profitable Consolidated Subsidiaries and Affiliates FY2018 FY2019 Year on (Companies) Subsidiaries Affiliates Subsidiaries Affiliates Total Total year Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Number of profitable Comp

  27. Slide 27: Appendix 5-1. Segments (Electronics & Devices)

    Appendix 5-1. Segments（Electronics & Devices） FY2020 (unit:billion yen) FY2018 FY2019 Year on year Change forecast Revenue 263.3 265.5 270.0 4.5 1.7% Operating profit 17.6 18.5 18.5 0.0 0.0% FY2019 results Operation profit Billion yen The ICT solutions business continued to perform solidly, mainly 1

  28. Slide 28: Appendix 5-2. Segments (Foods & Grain)

    Appendix 5-２. Segments（Foods & Grain） FY2020 (unit:billion yen) FY2018 FY2019 Year on year Change forecast Revenue 231.3 244.9 250.0 5.1 2.1% Operating profit 2.1 4.0 4.0 0.0 0.0% Billion yen Operating profit FY2019 results 4.5 The feedstuff business performed strongly reflecting stable feedstuff pr

  29. Slide 29: Appendix 5-3. Segments (Steel, Materials & Plant)

    Appendix 5-３. Segments (Steel, Materials & Plant) FY2020 (unit:billion yen) FY2018 FY2019 Year on year Change forecast Revenue 153.1 139.4 150.0 10.6 7.6% Operating profit 3.9 4.4 5.5 1.1 25.0% Operating profit FY2019 results Billion yen 6.0 The energy business faced a hard time due to temporary dec

  30. Slide 30: Appendix 5-4. Segments (Motor Vehicles & Aerospace)

    Appendix 5-4. Segments (Motor Vehicles & Aerospace) FY2020 (unit:billion yen) FY2018 FY2019 Year on year Change forecast Revenue 54.5 62.1 60.0 (2.1) ( 3.4%) Operating profit 2.5 2.5 2.5 0.0 0.0% Billion yen Operating profit FY2019 results 3.0 The aerospace business performed well, especially the ai

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