Kanematsu Corporation · TSE:8020

Kanematsu — FY2018 Earnings Presentation

22 slides from Kanematsu's earnings presentation, May 16, 2018

  1. Slide 1: Overview of Results for FY2018

    Note: The forward-looking statements in this material, including plans, forecasts, and strategies of May 16, 2018 the Group, reflect judgments that the Company made based on information available at the time the material was prepared and include risks and uncertainties. Because of changes in the bus

  2. Slide 2: 1. Overview of results for FY2018

    １. Overview of results for FY2018 Copyright (C) 2018 KANEMATSU CORPORATION. All Rights Reserved. 2

  3. Slide 3: 1-1. FY2018 Highlight (P/L)

    1-1. FY2018 Highlight (P/L) ✔ Both revenue and profit increased. Profit for the year (attributable to owners of parent) increased by 8.3 billion yen year on year. Year-on-year (Unit: billion yen) FY2017 FY2018 change Revenue 675.6 714.8 39.2 Gross profit 100.1 106.4 6.2 Operating profit 22.6 26.2 3.

  4. Slide 4: 1-2. FY2018 Highlight (Segment margin)

    1-2. FY2018 Highlight (Segment margin) ✔ Operating profit increased by 3.5 billion yen, mainly in the Electronics & Devices and Steel, Materials & Plant Segments. Electronics & Devices Increase in revenue and profit Billion yen Segment margin In the ICT solutions business, transactions mainly with t

  5. Slide 5: 1-3. FY2018 Highlight (B/S)

    1-3. FY2018 Highlight (B/S) ✔ The equity ratio increased due to an increase in retained earnings. ✔ The net debt-equity ratio remained low at the range of 0.5 times. ✔ Return on equity improved substantially, to 15.1%. FY2017 FY2018 FY2017 FY2018 (Unit: Billion yen) (Unit: Billion yen) results resul

  6. Slide 6: 2. FY2019 forecast

    2. FY2019 forecast Copyright (C) 2018 KANEMATSU CORPORATION. All Rights Reserved. 6

  7. Slide 7: 2-1. FY2019 forecast

    2-1. FY2019 forecast ✔ Increase in revenue and profit forecast FY2018 FY2019 (Unit: billion yen) Change results forcast Revenue 714.8 760.0 45.2 Operating Profit 26.2 30.0 3.8 Profit before tax 26.0 29.0 3.0 Profit for the year attributable to owners of the parent 16.3 16.5 0.2 Copyright (C) 2018 KA

  8. Slide 8: 2-2. FY2019 forecast (Segment margin)

    2-2. FY2019 forecast (Segment margin) ✔ In the food segment, a significant increase in profit is expected due to the recovery of the feed business. ✔ Steady performance is also expected in the other segments. Segment margin Electronics & Devices Billion yen (Operating profit) Good results are expect

  9. Slide 9: 2-3. FY2019 forecast Dividends

    2-3. FY2019 forecast Dividends ✔ With the range of the total return ratio of 25%-30%, stable and continued dividend payment is conducted. ✔ Stable dividend payment has been continued since the fiscal year ended March 2014. An annual dividend payment of 50 yen is planned for FY2019 12.0 After stock A

  10. Slide 10: Appendix

    Appendix Copyright (C) 2018 KANEMATSU CORPORATION. All Rights Reserved. 10

  11. Slide 11: Appendix 1-1. Consolidated Ordinary income (from FY1978)

    Appendix 1-1. Consolidated Ordinary income (from FY1978） Billion yen 35.0 VISION- 130 30.0 Bankruptcy of Lehman Brothers 26.0 25.0 22.9 The best gain 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

  12. Slide 12: Appendix 1-2. Consolidated Net income (from FY2000)

    Appendix１-2. Consolidated Net income（from FY2000) Billion yen Sold the last interests 25.0 owned VISION-130 190 20.0 173 Recorded deferred tax assets 163 165 15.0 115 10.0 94 80 5.0 0.0 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY

  13. Slide 13: Appendix 1-3. Shareholders' Equity & Equity Ratio

    Appendix１-３．Shareholders’ Equity & Equity Ratio Billion yen 120.0 25.0% Shareholders' Equity Equity ratio (right-axis) 20.9% 116.0 22.30% 21.2% 100.0 19.6% (Note:) Shareholder’s equity = Total equity attributable to owners of the parent 20.0% 100.4 16.7% 93.3 90.1 80.0 15.0% 71.7 60.0 13.7% 9.8% 9.1

  14. Slide 14: Appendix 1-4. Interest-bearing debt & Net debt-equity ratio

    Appendix１-4. Interest-bearing debt & Net debt-equity ratio Billion yen Times 250.0 10.0 213.6 9.0 Gross interest-bearing debt 200.0 193.1 Net interest-bearing debt 8.0 173.6 Net debt-equity ratio (right-axis) 7.0 160.8 146.9 150.0 141.9 6.0 136.1 135.2 137.3 5.4 133.8 5.0 134.6 3.8 3.2 100.0 109.4 4

  15. Slide 15: 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 & Electronics materials Printer equipment, Electronic modules Kanemats

  16. Slide 16: Appendix 3. Subsidiaries and Affiliates (Revenue & Operating profit)

    Appendix３．Subsidiaries and Affiliates（Revenue & Operating profit） FY2017 FY2018 Ownership (Unit: billion yen) Business ratio Operating Operating Revenue Revenue profit profit Kanematsu Electronics Ltd ICT solution 58.28% 64.2 8.2 62.2 10.0 Kanematsu Communications Ltd. Mobile 100.00% 104.1 4.1 132.0

  17. Slide 17: Appendix 4. Subsidiaries

    Appendix４．Subsidiaries Number of Profitable and Non-Profitable Consolidated Subsidiaries and Affiliates FY2017 FY2018 Year on (Companies) Subsidiaries Affiliates Subsidiaries Affiliates Total Total year Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Number of profitable 39 3

  18. Slide 18: Appendix 5. Consolidated segment margin break down

    Appendix５．Consolidated segment margin break down Forecast for segment operating profit FY2019 FY2018 Change （unit:billion yen） forcast ICT solutions 10.0 10.0 0.0 Expect the same level as the Mobile 5.9 6.0 0.1 previous period as a Others 1.7 1.5 (0.2) conservative evaluation. Electronics & Devices

  19. Slide 19: Appendix 6-1. Segments (Electronics & Devices)

    Appendix 6-1. Segments（Electronics & Devices） FY2019 (unit:billion yen) FY2017 FY2018 Year on year Change forcast Revenue 254.3 263.3 270.0 6.7 2.5% Operating profit 14.3 17.6 17.5 ( 0.1) (0.6%) Billion yen Operating profit FY2018 results 20 In the ICT solutions business, transactions mainly with th

  20. Slide 20: Appendix 6-2. Segments (Foods & Grain)

    Appendix 6-２. Segments（Foods & Grain） FY2019 (unit:billion yen) FY2017 FY2018 Year on year Change forcast Revenue 227.8 231.3 260.0 28.7 12.4% Operating profit 2.5 2.1 4.0 1.9 90.5% Billion yen Operating profit FY2018 results 5.0 The food business continued to grow. The meat products business slowed

  21. Slide 21: Appendix 6-3. Segments (Steel, Materials & Plant)

    Appendix 6-３. Segments (Steel, Materials & Plant) FY2019 (unit:billion yen) FY2017 FY2018 Year on year Change forcast Revenue 131.2 153.1 160.0 6.9 4.5% Operating profit 2.8 3.9 5.0 1.1 28.2% Billion yen 6.0 Operating profit FY2018 results The oilfield tubing business improved significantly in 5.0 N

  22. Slide 22: Appendix 6-4. Segments (Motor Vehicles & Aerospace)

    Appendix 6-4. Segments (Motor Vehicles & Aerospace) FY2019 (unit:billion yen) FY2017 FY2018 Year on year Change forcast Revenue 50.4 54.5 60.0 5.5 10.1% Operating profit 2.2 2.5 2.5 0.0 0.0% Billion yen 3.0 Operating profit FY2018 results The motor vehicles and parts business for the Middle and Near

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