Japan Aviation Electronics Industry, Limited · TSE:6807

Japan Aviation Electronics Industry — 1H FY2015 Earnings Presentation

24 slides from Japan Aviation Electronics Industry's earnings presentation, Oct 28, 2015

  1. Slide 1: Financial Results for 1H of FY2015 and Prospects for FY2015

    Financial Results for 1H of FY2015 （Six months ended September 30, 2015） and Prospects for FY2015 October 28, 2015 6807 Japan Aviation Electronics Industry, Ltd. Copyright ©2015. Japan Aviation Electronics Industry. Ltd 1

  2. Slide 2: Agenda

    Agenda Technology to Inspire Innovation Ⅰ. Financial Results for 1H of FY 2015 Ⅱ. Prospects for FY2015 Copyright ©2015. Japan Aviation Electronics Industry. Ltd 2

  3. Slide 3: 1-1. Sales & Income

    1-1. Sales & Income Technology to Inspire Innovation （JPY in 100 millions） FY2014 FY2015 Year/Year Change as of April 2015 1H 1H 2015(1H) Projection (margin) (margin) Sales 889 971 +82 109% 970 Operating Income 106 11.9% 124 12.8% +18 117% 124 Ordinary Income 100 11.2% 115 11.9% +15 116% 112 Net Inc

  4. Slide 4: 1-2. Sales & Incomes Growth

    1-2. Sales & Incomes Growth Technology to Inspire Innovation Record-high of sales and income for four consecutive years in terms of first-half results (JPY in 100 millions) (JPY in 100 millions) 1,500 100 115 Ordinary Income 100 55 Sales 36 72 85 Incomes 23 39 971 1,000 25 14 Net Income 0 889 731 60

  5. Slide 5: 2-1. Sales by Business Segment

    2-1. Sales by Business Segment Technology to Inspire Innovation （JPY in 100 millions） FY2014 FY2015 Year/Year Change 1H 1H Connector 780 88% 876 90% +96 112% UIS 33 4% 41 4% +8 125% Aerospace 72 8% 50 5% -22 70% Others 4 ー 4 ー 0 ― Total 889 100% 971 100% +82 109% ※ Amounts less than 100 million yen

  6. Slide 6: 2-2. Operating Income by Business Segment

    2-2. Operating Income by Business Segment Technology to Inspire Innovation （JPY in 100 millions） FY2014 FY2015 Year/Year Change 1H 1H (margin) (margin) Connector 121 15.5% 150 17.1% +29 124% UIS 1 2.1% 6 14.1% +5 829% Aerospace 3 3.9% -8 -15.9% -11 ー -19 -24 -5 Unallocatable Costs/Others － － － Total

  7. Slide 7: 2-3. Connector Business

    2-3. Connector Business Technology to Inspire Innovation Sales by Market Segment （JPY in 100 millions） 1,000 876 800 780  Mobile Devices +20% Sales increased mainly driven 425 by North American customers’ 600 355 demand  Automotive 400 Japanese customers business +21% increased substantially 258 3

  8. Slide 8: 2-4. UIS Business

    2-4. UIS Business Technology to Inspire Innovation Sales by Market Segment （JPY in 100 millions） 50 41  Device 40 2 33  Automotive 30 4 +47% Sales for Japanese customers 25 increased substantially owing to capacitive touch panel for 20 17 automotive 10 +17%  Industrial & Infrastructure 14 Sales f

  9. Slide 9: 2-5. Aerospace Business

    2-5. Aerospace Business Technology to Inspire Innovation Sales by Market Segment （JPY in 100 millions） 80 72 60 28 50 40 21  Defense & Space 44  Industrial, Infrastructure 20 & Automotive 29 Sales for major oil drilling customers overseas decreased 0 due to oil price down 1H 2014 1H 2015 Industria

  10. Slide 10: 3. Sales by Market Segment

    3. Sales by Market Segment Technology to Inspire Innovation （JPY in 100 millions） FY2014 FY2015 Year/Year Change 1H 1H Mobile Devices 355 40% 425 44% +69 120% Automotive 279 31% 342 35% +62 123% Industrial & Infrastructure 149 17% 127 13% -23 85% Others 106 12% 77 8% -26 73% Total 889 100% 971 100%

  11. Slide 11: 4. Sales by Region

    4. Sales by Region Technology to Inspire Innovation （JPY in 100 millions） FY2014 FY2015 Year/Year Change 1H 1H Domestic 274 31% 257 26% -17 94% Overseas 615 69% 714 74% +99 116% Total 889 100% 971 100% +82 109% ※ Amounts less than 100 million yen are rounded off. Copyright ©2015. Japan Aviation Elec

  12. Slide 12: 5. Improvement of Asset Efficiency

    5. Improvement of Asset Efficiency Technology to Inspire Innovation （JPY in 100 millions） Inventory （Days）（JPY in 100 millions） Tangible （Times） 1,000 Inventory 1,000 Fixed Asset 3.50 37 Turnover 3.14 Turnover Days 2.91 Ratio 3.00 34 35 800 800 2.49 2.54 2.50 30 600 27 600 26 25 400 400 587 627 621

  13. Slide 13: Agenda

    Agenda Technology to Inspire Innovation Ⅰ. Financial Results for 1H of FY 2015 Ⅱ. Prospects for FY2015 Copyright ©2015. Japan Aviation Electronics Industry. Ltd 13

  14. Slide 14: 1-1. Strategy for 2H of FY2015

    1-1. Strategy for 2H of FY2015 Technology to Inspire Innovation Business Environment  Uncertainty ahead over macroeconomics due to sluggish Chinese economy  Nonetheless, certain markets will grow and certain customers will succeed even in the adverse condition Strategy  Achieve sales growth by fo

  15. Slide 15: 1-2. Strategy① (Mobile Devices)

    1-2 .Strategy①（Mobile Devices） Technology to Inspire Innovation  Expand business for Chinese customers, as well as those for North American customers  Capture Chinese high-end devices demand and take growth opportunity for emerging markets  Meet demand for customer-proven miniaturized board to bo

  16. Slide 16: Promotion of USB Type-C for mobiles & PC

    Promotion of USB Type-C™ for mobiles & PC Technology to Inspire Innovation  Develop various connector and harness series for both catalogue and customized products.  Gaining strong demand and orders from numerous customers Copyright ©2015. Japan Aviation Electronics Industry. Ltd 16

  17. Slide 17: Market Expansion of USB Type-C "DX07"

    Market Expansion of USB Type-C™ “DX07” Technology to Inspire Innovation  Useful for various products as next standardized I/O as successor of USB (Type A/B) connector  Aim the top market share as a contributor to the product standardization PC （adopted） One Type C cable enables data transmission a

  18. Slide 18: 1-3. Strategy② (Automotive)

    1-3. Strategy②（Automotive） Technology to Inspire Innovation  European market advanced digitization of in-vehicle camera, while Japanese market will catch up the trend soon for the rapid growth  Globalize the camera connector sales based on European business footprint  Focus on sales to domestic c

  19. Slide 19: 1-4. Strategy③ (Industrial & Infrastructure)

    1-4. Strategy③（Industrial & Infrastructure） Technology to Inspire Innovation  Industrial and Infrastructure segment holds 46% of connector market  Expand sales with proven supply record to world-class Japanese manufactures in factory automation, machine tool and robot sectors One-touch Lock Screw

  20. Slide 20: Product Reliability in Harsh Environment

    Product Reliability in Harsh Environment Technology to Inspire Innovation  Apply our know-how in product reliability needs in harsh environment* into industrial and infrastructure market business (*against temperature, humidity, pressure, vibration, dirt, dust, oil, etc.) Waterproof I/O Connector W

  21. Slide 21: Evaluation & Test Laboratory

    Evaluation & Test Laboratory* Technology to Inspire Innovation Construction started to build a evaluation & test laboratory* (3,400㎡）at Akishima plant to meet sophisticated quality requirement for product of customers such as automotive, industrial and infrastructure markets (*tentative name) Testin

  22. Slide 22: 2. Prospects for FY2015

    2. Prospects for FY2015 Technology to Inspire Innovation (JPY in 100 millions) FY2014 FY2015 Year/Year Change Results Projections Sales 1,912 2,030 +118 106% Operating 259 270 +11 104% Income Ordinary 232 240 +8 103% Income Net 158 170 +12 108% Income ※ Amounts less than 100 million yen are rounded

  23. Slide 23: 3. Projection for Capital Investment and Depreciation

    ３. Projection for Capital Investment and Depreciation Technology to Inspire Innovation (JPY in 100 millions) 250 222 230 200 150 121 190 97 Capital 100 Production 230 Investment Machines / 105 Dies 50 86 Land/ 16 32 11 Building 0 50 93 89 100 215 215 Depreciation, others 150 200 250 1H 2014 FY2014 1

  24. Slide 24: Cautionary Statement

    <Cautionary Statement> The plans, strategies & results forecasts and targets for our company and our consolidated affiliates (hereinafter JAE) noted in these materials are forecasts and targets as of October 28, 2015, and include risks and uncertainties. The targets noted in these materials are not

Japan Aviation Electronics Industry — 1H FY2015 Earnings Presentation on 6ix