Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — H1 FY24/25 Earnings Presentation
47 slides from Johnson Electric's earnings presentation, November 2024
Slide 1: FY24/25 Interim Results Investor Briefing
FY24/25 Interim Results For the period ended 30 September 2024 Investor Briefing November 2024
Slide 2: Agenda
FY24/25 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information Page 2 A World of Motion. Powered by Sustainable Innovation…
Slide 3: Overview: Automotive, Industry and Components Groups
Overview Automotive Industry Components & Products Group Products Group Services APG provides motion-related IPG serves a wide range of industrial, Our technical expertise, components for all vehicle types. We professional and consumer segments. in-house tool rooms and vertical are well-placed to ca
Slide 4: History & Development
History & Development Sales US$ 3.8bn 3.1bn Hong Kong Hong Kong listed Global family business company starting multinational 2.1bn to supply the world 1.7bn 1.1bn 677m 251m 126m 16m 54m Fiscal 1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2024 Year Founded by AC motor Listed on Ac
Slide 5: Driving a Sustainable Future
Driving a Sustainable Future Page 5 A World of Motion. Powered by Sustainable Innovation…
Slide 6: Strategies
Strategies Develop Focus Invest Build Align Acquire and retain on serving in technological a resilient global the design and selective a diverse, customers whose innovation to manufacturing production businesses talented, and products are provide unique footprint to processes with that bring inclusi
Slide 7: Johnson Electric at a Glance
Johnson Electric at a Glance FY23/24 Providing motion solutions Making over to approximately 4 million products* per day *motors and other motion related products 1,600 customers Operating in 22 countries across 4 continents Employing over Generating total sales revenue of 30,000 people US$3.8 billi
Slide 8: Agenda
FY24/25 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information Page 8 A World of Motion. Powered by Sustainable Innovation…
Slide 9: Why Invest in Johnson Electric?
Why Invest in Johnson Electric? One of the World’s Largest Providers of Motion Solutions in electric motors, actuators, motion subsystems and related electromechanical components Innovative motion solutions for today and the future Geographically diverse, blue-chip customer base Global operating foo
Slide 10: Innovative Solutions for Today & the Future
Innovative Solutions For Today & the Automotive Smart Home & Electrification & Healthcare E-Commerce & IOT Environment Industrial Subsystems and Home automation for Zero-carbon solutions Medical device Industrial equipment, components that windows and robotic for mobility, lawn care subsystems for d
Slide 11: Our Divisions
Our Divisions •••• Automotive Industry Products Products Group Group • Braking • Suspension • Business • Lawn & garden • Closure • Thermal equipment • Medical devices • Interior management • Data Center • Power tools • Transmission Cooling • Powder metal • Robotics components & driveline • E-bikes •
Slide 12: Diversified Sales
Diversified Sales First Half of FY24/25 Note: EMEA: Europe, the Middle East and Africa Page 12 A World of Motion. Powered by Sustainable Innovation…
Slide 13: Diversified Customer Base
Diversified Customer Base World-class Customers Across Diversified Industries 400 Approx. Automotive Customers 1100 Approx. Non-Auto Customers Disclaimer: All customer tradenames and trademarks are the property of their respective owners. Their use in this presentation is for identification purposes
Slide 14: Market shift to net zero
Market shift to net zero APG’s Growth Opportunity • NEV 2023-2030 CAGR 16% • • Page 14 A World of Motion. Powered by Sustainable Innovation…
Slide 15: JE Automotive Products: Enabling Electrification and Reducing Emissions
JE Automotive Products Enabling Electrification and Reducing Emissions ICE BEV Powder Metal JE Applications Suitable Shift- by-wire for All Vehicle Types Mild HEV PHEV parts Thermal Brushless DC module Management HEV Large Cooling E-oil fan pump Vision carrier module Power Closure Pump gear Braking
Slide 16: JE Automotive Products: Well Positioned for NEV Growth
JE Automotive Products Well Positioned for Growth in New Energy Vehicles (NEV) Electric Integrated JE Mild HEV BEV supercharger system blower thermal management system Applications targeting Hybrid & BEV HEV PHEV Mild HEV HEV PHEV E-water Planetary BEV pump assemblies Fuel pump E-turbo Electric thro
Slide 17: Content Opportunity per Vehicle Increases
Content Opportunity per Vehicle Increases from ICE to Hybrid / BEV Electrifying critical EV functions Thermal Management Enabling critical EV • ITMS thermal management • Electric water Capitalizing on business opportunities for NEVs systems for enhanced pump driving range, extended • Valve actuator
Slide 18: Examples of Recent Automotive Business Wins for NEVs
Examples of Recent Automotive Business Wins for New Energy Vehicles Our innovative products are winning Braking Applications business on major NEV platforms Brake booster, e-parking lock, e-parking brake and electric vacuum pump for safety and shorter braking distance, lower weight, and energy regen
Slide 19: Autonomous Driving & Connectivity
Autonomous Driving & Connectivity Smart Smart Steering & Vision Closure Cabin Braking Window lift and sunroof motor Seat adjuster motor Steering-by-wire motor LiDAR motor Electro-mechanical braking motor Power door Sensor washing system opening motor Brake-by-wire Power lift tailgate / frunk motor R
Slide 20: IPG Growth Supported by Megatrends
IPG Growth Supported by Megatrends Focusing on Smart Home and Internet of Things sustainable growth prospects Electrification & Environment Touching Human Needs E-commerce & Industrial Healthcare Improving Performance Page 20 A World of Motion. Powered by Sustainable Innovation…
Slide 21: Winning Market Traction
Winning Market Traction Medium-term sales outlook 3 9% US$ 5.9bn CAGR US$ 3.8bn US$ 4.4bn New business wins and opportunities 2 4% 1 3% Global Global are set to sustain GDP vehicle growth growth growth FY23/24 Actual FY28/29 Forecast Note: Estimated total Group sales outlook based on customer order
Slide 22: Global Operating Footprint
Global Operating Footprint Operating in 22 Countries across 4 Continents Workforce of over 30,000 across 22 countries Manufacturing sites Sales & support offices Engineering sites All Page 22 A World of Motion. Powered by Sustainable Innovation…
Slide 23: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to Johnson Electric’s Evolution We are a truly global team We thrive on innovation and We believe that hiring the right bound together by our shared excel in execution. We are people and putting them in the values. We recognize that the committed to making our right jobs maximize the
Slide 24: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to Johnson Electric’s Evolution JETC educating underprivileged youth in Our JEnerations teams organize China, Mexico and India local community activities Our flagship JETC and JEnerations programs give testimony to our commitment to contributing to “I am a graduate of the fourth JETC
Slide 25: Key sustainability achievements
ESG is Integral to Johnson Electric’s Evolution Key sustainability achievements At Johnson Electric, every team and Engaging with our Launched 53.% reduction in top 300 suppliers Healthy@JE every employee is CO2 from our factories to improve their employee wellness encouraged to take vs FY20/21 base
Slide 26: Agenda
FY24/25 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information Page 26 A World of Motion. Powered by Sustainable Innovation…
Slide 27: Financial Highlights
Financial Highlights 1. Earnings before interest, tax and amortization 2. Adjusted to exclude unrealized gains or losses relating to exchange rate movements as well as restructuring and other related costs Note: Numbers do not add up due to effect of rounding Page 27 A World of Motion. Powered by Su
Slide 28: Financial Highlights
Financial Highlights 1. Cash and cash equivalents and time deposits 2. Bank, bonds and other miscellaneous borrowings 3. Cash, cash equivalents and time deposits less total debt 4. Capital equals to total equity plus total debt 5. Including pension liabilities and lease liabilities 6. Adjusted earni
Slide 29: Agenda
FY24/25 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information Page 29 A World of Motion. Powered by Sustainable Innovation…
Slide 30: Group Sales Changes
Group Sales Changes First Half of FY24/25 vs. First Half of FY23/24 Sales decreased by 4% APG’s sales were weighed down by reduced light vehicle production volumes IPG’s end-markets remained challenging Page 30 A World of Motion. Powered by Sustainable Innovation…
Slide 31: APG Sales Growth vs. Light Vehicle Production
APG Sales Growth vs. Light Vehicle Production First Half of FY24/25 vs. First Half of FY23/24 Lower light vehicle production volumes adversely affected sales. This was: • Partly mitigated by growth in thermal management, closure and seat in EMEA • Exacerbated by less favourable customer mix and prog
Slide 32: APG Multi-Year Sales Changes vs. Light Vehicle Production
APG Multi-Year Sales Changes vs. Light Vehicle Production APG’s technology, scale and global footprint enables its customers in their transition to automotive electrification Note: 1. Actual and estimated light vehicle production volumes sourced from S&P Global Oct 2024 2. APG sales excluding curren
Slide 33: IPG Sales Growth by Region
IPG Sales Growth by Region First Half of FY24/25 vs. First Half of FY23/24 In Asia-Pacific, sales grew due to the global preference for more affordable consumer goods and some new business wins In EMEA and the Americas, sales declined due to weak markets and cautious consumer spending Note: EMEA: Eu
Slide 34: IPG Multi-Year Sales Trend
IPG Multi-Year Sales Trend Page 34 A World of Motion. Powered by Sustainable Innovation…
Slide 35: Adjusted Net Profit
Adjusted Net Profit First Half of FY24/25 vs. First Half of FY23/24 Profit benefited from cost-saving initiatives and net material deflation, as well as currency gains, largely offset by reduced volumes, wage inflation and higher freight costs 1. Unrealized gains or losses relating to exchange rate
Slide 36: Working Capital and Capital Expenditure
Working Capital and Capital Expenditure Trade and Other Receivables Trade and Other Payables US$ Days US$ Days million sales million purchases outstanding* outstanding** Inventories Capital Expenditure US$ Days US$ CAPEX as million inventory million % of sales on hand Page 36 A World of Motion. Powe
Slide 37: Free Cash Flow from Operations
Free Cash Flow from Operations * Capital expenditure, net of proceeds from disposal of fixed assets Page 37 A World of Motion. Powered by Sustainable Innovation…
Slide 38: Utilization of Free Cash Flow
Utilization of Free Cash Flow Page 38 A World of Motion. Powered by Sustainable Innovation…
Slide 39: Dividends
Dividends * Final dividend to be determined at the end of the fiscal year Page 39 A World of Motion. Powered by Sustainable Innovation…
Slide 40: Agenda
FY24/25 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information Page 40 A World of Motion. Powered by Sustainable Innovation…
Slide 41: Outlook
Outlook Cautiously optimistic Scheduled launch of new programs and replenishment of channel inventory in the second half of the financial year will provide the basis to return to top-line growth Uncertainties over macro-economic conditions and consumer confidence US presidential election cam
Slide 42: Agenda
FY24/25 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information Page 42 A World of Motion. Powered by Sustainable Innovation…
Slide 43: Profitability Review
Profitability Review First Half of FY24/25 vs. First Half of FY23/24 Page 43 A World of Motion. Powered by Sustainable Innovation…
Slide 44: Profitability Review
Profitability Review First Half of FY24/25 vs. First Half of FY23/24 Page 44 A World of Motion. Powered by Sustainable Innovation…
Slide 45: From Reported to Adjusted Net Profit
From Reported to Adjusted Net Profit 1. Unrealized gains or losses relating to exchange rate movements are significant non-cash items. Restructuring and other related costs are not part of the routine operations of the Group. This adjusted measure of net profit excluding non-cash foreign exchange ra
Slide 46: Average Exchange Rates
Average Exchange Rates First Half of FY24/25 vs. First Half of FY23/24 Page 46 A World of Motion. Powered by Sustainable Innovation…
Slide 47: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric. Words such as “outlook”, “expects”, “anticipates”, “intends
Johnson Electric Holdings — H1 FY24/25 Earnings Presentation on 6ix