Jvckenwood Corporation · TSE:6632
Jvckenwood — Q1 FYE March 2019 Earnings Presentation
30 slides from Jvckenwood's earnings presentation, Aug 1, 2018
Slide 1: Results and Forecast Briefing, First Quarter FYE March 2019
Translation for Reference Only JVCKENWOOD Results and Forecast Briefing First Quarter of Fiscal Year Ending March 2019 August 1, 2018 JVCKENWOOD Corporation Copyright © 2018 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Notice
Notice JVCKENWOOD has voluntarily applied International Financial Reporting Standards (IFRS) to replace Japanese Generally Accepted Accounting Principles (JGAAP), starting from the Securities Report for the fiscal year ended March 2018. Accordingly, all figures for the fiscal years ending March 2019
Slide 3: Business Domains
Business Domains Media Service Sector (MS) Others（1.7%） 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 18.7%
Slide 4: Agenda
1. Overview of Financial Results for 1Q of FYE 3/’19 2. Full-year Earnings Forecast for FYE 3/’19 3. Topics
Slide 5: Overview of Financial Results for 1Q of FYE 3/'19
1. Overview of Financial Results for 1Q of FYE 3/’19 2. Full-year Earnings Forecast for FYE 3/’19 3. Topics
Slide 6: Financial Results for 1Q of FYE 3/'19 - Highlights
Financial Results for 1Q of FYE 3/’19 - Highlights Revenue increased due to higher sales in the AM and PS Sectors. Core operating income turned positive, due to profit increases in the AM, PS, and MS Sectors. Operating income also increased. Income before income taxes turned positive, reflecti
Slide 7: Trends in Quarterly Results
Financial Results for 1Q of FYE 3/’19 – Trends in Quarterly Results Operating Revenue Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 100.0 1,000 5.0 50 83.7 80.0 800 72.6 75.5 4.0 40 68.9 72.6 600 60.0 3.0 30 2.4 2.2 Revenue 2.3 40.0 400 20 2.0 Operating Income 1.0 200 20.0 1.0 10 0.1 0 0 △-20
Slide 8: Results by Sector
Financial Results for 1Q of FYE 3/’19 - Results by Sector （Billion yen） 1Q 1Q Factors FYE3/’18 FYE3/’19 YoY change YoY change (amount) (percentage) Revenue 40.2 43.0 + 2.8 +7.1% ・ Revenue in the AM Sector as a whole increased, due to higher sales in the OEM Business. AM Sector ・ Operating income in
Slide 9: Consolidated Revenue (by Sector)
Financial Results for 1Q of FYE 3/’19 - Consolidated Revenue (by Sector) Consolidated Revenue (Billion yen) (by Sector) 800 80.0 +1.3 -0.5 -0.0 ＋2.8 MS Others PS AM 600 60.0 68.9 72.6 400 0 FYE3/’18 FYE3/’19 1Q 1Q 9
Slide 10: Quarterly Results (AM Sector)
Financial Results for 1Q of FYE 3/’19 - Quarterly Results (AM Sector) Core Operating Revenue Income (Billion yen) (Billion yen) FYE3/’18 FYE3/’19 500 50.0 5.0 50 Aftermarket OEM 400 40.0 40 4.0 3.0 30.0 300 3.0 30 2.0 20.0 200 1.5 1.7 1.4 20 2.0 100 10.0 10 1.0 0 0 △-10.0 100 -1.0 △ 10 △-20.0 200 -2
Slide 11: Quarterly Results (PS Sector)
Financial Results for 1Q of FYE 3/’19 - Quarterly Results (PS Sector) Core Operating Revenue Income (Billion yen) (Billion yen) FYE3/’18 FYE3/’19 500 50.0 50 5.0 Professional Systems Communication Systems 400 40.0 40 4.0 300 30.0 30 3.0 200 20.0 20 2.0 100 10.0 0.6 10 1.0 0 0 -0.3 -0.3 △-10.0 100 △
Slide 12: Quarterly Results (MS Sector)
Financial Results for 1Q of FYE 3/’19 - Quarterly Results (MS Sector) Core Operating Revenue Income (Billion yen) (Billion yen) FYE3/’18 FYE3/’19 500 50.0 50 5.0 Entertainment Media 400 40.0 40 4.0 300 30.0 30 3.0 200 20.0 20 2.0 100 10.0 10 1.0 0.4 0.2 0.0 0.1 0 0 -0.1 △-10.0 100 △ 10 -1.0 △-20.0 2
Slide 13: Consolidated Revenue (by Region)
Financial Results for 1Q of FYE 3/’19 - Consolidated Revenue (by Region) Consolidated Revenue (Billion yen) (by Region) 750 75.0 +0.2 +0.1 +1.3 Others Asia/ China +0.4 ＋1.6 Europe 70.0 700 Americas Japan 72.6 65.0 650 68.9 6000 FYE3/‘18 FYE3/‘19 1Q 1Q 13
Slide 14: Consolidated Revenue by Region
Financial Results for 1Q of FYE 3/’19 - Consolidated Revenue by Region Revenue (Billion yen) FYE3/’18 FYE3/’19 100.0 1,000 Others Asia/China Europe 1.3 Americas 800 80.0 1.2 9.3 Japan 1.2 1.3 1.2 10.2 9.3 14.6 9.5 9.3 600 60.0 14.0 15.7 15.9 14.6 19.4 400 40.0 17.0 16.5 15.7 15.3 20.0 200 39.2 28.7
Slide 15: Consolidated Core Operating Income (by Region)
Financial Results for 1Q of FYE 3/’19 - Consolidated Core Operating income (by Region) Consolidated Core Operating Income (Billion yen) (by Region) 1.0 10 Others MS +0.3 -0.1 ＋0.2 PS 0.5 5 ＋0.5 0.9 AM 0 -0.0 △5 -0.5 FYE3/’18 FYE3/‘19 1Q 1Q 15
Slide 16: Consolidated Profit or Loss (Summary)
Financial Results for 1Q of FYE 3/’19 - Consolidated Profit or Loss (Summary) Income before income taxes turned positive, reflecting an increase in operating income. Profit attributable to owners of parent turned positive, reflecting the increase in income before income taxes. （Billion yen） 1Q F
Slide 17: Consolidated Statement of Financial Position Summary
Financial Results for 1Q of FYE 3/’19 - Consolidated Statement of Financial Position Summary (Billion yen) FYE3/’18 1Q FYE3/’19 YoY Change Tortal Assets 239.9 235.7 -4.3 Tortal Liabilities 186.1 179.4 -6.7 Tortal Equity 53.8 56.3 + 2.5 Interest-Bearing Debts 67.8 69.3 + 1.5 Net Debt 30.7 34.5 + 3.8
Slide 18: Cash Flow Summary
Financial Results for 1Q of FYE 3/’19 - Cash Flow Summary Cash flow from operating activities decreased, due mainly to an increase in working capital as a result of increased revenue, despite the increase in profit before tax. Cash flow from investing activities increased, due to an increase in
Slide 19: Full-year Earnings Forecast for FYE 3/'19
1. Overview of Financial Results for 1Q of FYE 3/’19 2. Full-year Earnings Forecast for FYE 3/’19 3. Topics
Slide 20: Full-year Earnings Forecast for FYE 3/'19
Full-year Earnings Forecast for FYE 3/’19 Earnings for 1Q were strong, exceeding the period-start projections for the Group as a whole, due to higher-than-projected performance in the AM, PS, and MS Sectors. In 2Q and thereafter, we expect continued strong performance in the OEM business in the
Slide 21: Topics
1. Overview of Financial Results for 1Q of FYE 3/’19 2. Full-year Earnings Forecast for FYE 3/’19 3. Topics
Slide 22: Automotive Sector
Automotive Sector Aftermarket • Deployed car accessories with superior designs and functionality, such as FM transmitter and cigar lighter socket for car charger, as new products. • Scheduled to launch new display audio products in overseas markets, centering on Europe and the US. OEM（dealer-ins
Slide 23: Further Expanding Sales of Dashcams
Further Expanding Sales of Dashcams AM Aftermarket Maintained top market share* in the Japanese market for the second consecutive year in FY2017, based on high evaluations of the industry-leading levels of “high quality” and “long time recording” camera. Sales remained strong in 1Q. AM OEM Order
Slide 24: Public Service Sector
Public Service Sector Communication Systems • NX-3000 series of multi-protocol digital radios received high evaluations and enjoyed strong sales mainly in the US. • Won new large-volume orders from airports in EMEA* and leading retail chains. *Europe, Middle East, and Africa • US radio subsidiarie
Slide 25: Public Service Sector
Public Service Sector Professional Systems • Delivered operating system for centralized management of various information, such as disaster situation and weather information, to Ishinomaki City Disaster Prevention Center. • Won a large order for railroad camera systems from a railroad company. H
Slide 26: Media Service Sector
Media Service Sector Media (lifestyle) • Earnings improved significantly year-on-year, due mainly to the expansion of the Bluetooth® headphones product line, including wireless headphones, and new camcorder products. Media (solution) • Contributions from solutions are expected from 2Q through th
Slide 27: Media Service Sector: Entertainment
Media Service Sector Entertainment Major promising works released in 2Q Umi no Oh, Yeah!!!!! A premium album from the Southern All Stars New release on August 1 (Wed.)! 27
Slide 28: Brand Strategy - Sponsorship Activities
Brand Strategy - Sponsorship Activities Provided Radio Activity’s digital radio systems WTCC became WTCR (FIA world touring car cup) from 2018 to compliant with DMR, a digital mobile radio offer more thrilling auto racing. JVCKENWOOD co-sponsors WTCR standard, to MotoGP™, the world’s top in a co
Slide 29: Brand Strategy - Brand Application
Brand Strategy - Brand Application Victor brand music box KENWOOD brand UNIQLO T-shirt Reproduced luxury music box “RJ-3000” to T-shirt with motif of KENWOOD K’s series mini commemorate the 90th anniversary of component speaker system was released under Victor’s establishment. “The Brands Gr
Slide 30: 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