Japan Aviation Electronics Industry, Limited · TSE:6807
Japan Aviation Electronics Industry — 1H FY2020 Earnings Presentation
29 slides from Japan Aviation Electronics Industry's earnings presentation, Oct 28, 2020
Slide 1: Financial Results for 1H of FY2020 and Prospects for FY2020
Financial Results for 1H of FY2020 and Prospects for FY2020 October 28, 2020 6807 Japan Aviation Electronics Industry, Ltd. Copyright ©2020, Japan Aviation Electronics Industry, Ltd.
Slide 2: Agenda
Agenda Technology to Inspire Innovation I. Financial Results for 1H of FY2020 II. Prospects and strategy for FY2020 Copyright ©2020. Japan Aviation Electronics Industry. Ltd 2
Slide 3: I. Financial Results for 1H of FY2020
I. Financial Results for 1H of FY2020 (From April 1, 2020 to September 30, 2020) ※ Effective from the beginning of the first quarter of the current fiscal year, the Company has changed its accounting policy and revised the calculation method of retirement benefit obligations and service cost. Accord
Slide 4: Net Sales and Income
Net Sales and Income Technology to Inspire Innovation (JPY in 100 millions) Year/Year vs. 1H 1H FY2020 FY2019 FY2020 Change Projections 1H FY2019/ FY2020 anounced 1H 2H 1H 1H FY2018 Projections Jul, 2020 Net Sales 1,008 1,073 972 -36 96% 17 102% 955 Operating 71.1 69.1 9.2 -61.9 13% -0.8 92% 10.0 In
Slide 5: Performance in 1H of FY2020
Performance in 1H of FY2020 Technology to Inspire Innovation JAE has focused on ensuring business performance as well as fulfilling our responsibility for supplying products to customers under the circumstances of the sharp drop in demand and operational restrictions triggered by COVID-19 crisis ▶ O
Slide 6: Year on Year Changes in Operating Income
Year on Year Changes in Operating Income Technology to Inspire Innovation 1H of FY2019 7.11 billion yen Decrease in Exchange operation of rate changes production sites Revenue decrease due to product mix Cost for expedited shipment and rises in materials 1H of FY2020 cost 0.92 billion yen Reduction
Slide 7: Sales by Market Segment
Sales by Market Segment Technology to Inspire Innovation Demand bottomed out, particularly in the automotive and mobile device markets, in Q1, and sales increased in Q2 ▶ Mobile Devices: Demand from Chinese smartphone OEMs sharply declined in Q1, however, sales were on a recovery track in Q2 due to
Slide 8: Net Sales and Operating Income
Net Sales and Operating Income Technology to Inspire Innovation ▶ In Q1, we posted a loss owing to demand decrease mainly in the automotive market and production restrictions of our production bases ▶ Sales recovered from Q2 and profitability improved due to increase of capacity utilization and prod
Slide 9: Connector Business
Connector Business Technology to Inspire Innovation Sales by Market Segment Sales：96% (of 1H FY2019) (JPY in 100 millions) 891 Year/Year 856 Change 96％ ▶ Mobile Devices • Sales to US customers increased Mobile Devices 477 104% • Demand from Chinese Smartphone 494 OEMs declined ▶ Automotive • Sales d
Slide 10: UIS Business
UIS Business Technology to Inspire Innovation Sales by Market Segment (JPY in 100 millions) Year/Year Change 45 Sales：118% (of 1H FY2019) 39 118％ ▶ Automotive (In-Vehicle Touch Panels) 29 • Sales significantly increased compared Automotive 23 126% with the same period last year due to expanding prod
Slide 11: Aerospace Business
Aerospace Business Technology to Inspire Innovation Sales by Market Segment (JPY in 100 millions) 75 Year/Year Sales：90% (of 1H FY2019) Change 90% 67 ▶ Industrial & infrastructure, and Industrial & Infrastructure 52 80% 42 Automotive and Automotive • Sluggish demand of sensors for oil drilling due t
Slide 12: II. Prospects and strategy for FY2020
II. Prospects and strategy for FY2020 (From April 1, 2020 to March 31, 2021) Copyright ©2020. Japan Aviation Electronics Industry. Ltd
Slide 13: Assumptions for the Earnings Forecasts
Assumptions for the Earnings Forecasts Technology to Inspire Innovation ▶ Business Environment Expansion of economic activities in Asia, Europe and North America to further continue Assuming that that there will be no further significant decline in demand or lock-down due to COVID-19 ▶ Market En
Slide 14: Prospect for FY2020
Prospect for FY2020 Technology to Inspire Innovation ▶ Full-year outlook remains unchanged despite revision of exchange rate assumptions (JPY in 100 millions) FY2019 FY2020 Year/Year vs. FY2020 vs. FY2020 Projections 1H 1H Projections Change Projections announced Jul, 2020 Net Sales 1,008 2,081 972
Slide 15: Prospects for Net Sales by Business Segment
Prospects for Net Sales by Business Segment Technology to Inspire Innovation ▶ No change from assumptions as of July (JPY in 100 millions) FY2019 FY2020 Year/Year 1H Projections 1H Projections change Connector 891 1,836 856 1,680 -156 92% UIS 39 90 45 100 10 112% Aerospace 75 149 67 145 -4 98% Other
Slide 16: Prospects for Net Sales by Market Segment
Prospects for Net Sales by Market Segment Technology to Inspire Innovation (JPY in 100 millions) FY2020 FY2019 FY2020 Year/Year vs. FY2020 Projections 1H 1H Projections Change Projections announced Jul, 2020 Mobile Devices 477 1,001 494 905 -96 90% 0 905 Automotive 343 704 289 641 -63 91% 10 631 Ind
Slide 17: Quarterly Sales Results and Prospects (Mobile Devices)
Quarterly Sales Results and Prospects (Mobile Devices) Technology to Inspire Innovation ▶ New models remained robust over Q3, while demand from Chinese smartphone OEMs recovered and sales of specified products declined sharply ▶ Demand decrease expected in Q4 due to seasonality in the smartphone mar
Slide 18: Quarterly Sales Results and Prospects (Automotive)
Quarterly Sales Results and Prospects (Automotive) Technology to Inspire Innovation ▶ Demand mainly from Japanese customers is expected to recover from Q2 and continue beyond Q3 ▶ By region, following China, demand is expected to recover around the world ▶ Amid a tight inventory across the entire su
Slide 19: Initiatives to Achieve Full-Year Outlook (1)
Initiatives to Achieve Full-Year Outlook (1) Technology to Inspire Innovation Revive and strengthen production system that have shrunk due to reduced demand ▶ Revive production systems that have shrunk due to reduced demand in the mobile device and automotive markets in spite of manpower restriction
Slide 20: Initiatives to Achieve Full-Year Outlook (2)
Initiatives to Achieve Full-Year Outlook (2) Technology to Inspire Innovation Continue to win new contracts and develop new products under COVID-19 crisis ▶ Sales Activities Use IT tools to promote remote business negotiations and host webinars Strengthening Digital Marketing • Promote MA (marke
Slide 21: Growth Initiatives (Automotive)
Growth Initiatives (Automotive) Technology to Inspire Innovation EV (Electric Vehicle) ADAS / Autonomous Large-current/high-voltage Expand globally, focusing on connectors adopted for EV of Japanese customers, including European carmaker connectors for sensing cameras Started delivery of mass pr
Slide 22: Technology to Inspire Innovation
Technology to Inspire Innovation
Slide 23: Cautionary Statement
Technology to Inspire Innovation <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, 2020, and include risks and uncertainties. The targets
Slide 24: [Reference] Net Sales by Business Segment
[Reference] Net Sales by Business Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year FY2019 FY2020 Change 1H FY2020/ 1H 2H 1H 1H FY2019 Component Ratio Connector 891 945 856 88% -35 96% UIS 39 51 45 5% 7 118% Aerospace 75 73 67 7% -8 90% Others 4 3 3 ー -0 92% Total 1,008 1,073
Slide 25: [Reference] Operating Profit by Business Segment
[Reference] Operating Profit by Business Segment Technology to Inspire Innovation (JPY in 100 millions) Lower row indicates return on sales FY2019 FY2020 Year/Year 1H 2H 1H Change Connector 84.7 88.6 26.2 -58.6 9.5% 9.4% 3.1% UIS -1.9 -2.5 -0.4 1.5 -5.0% -4.8% -0.9% Aerospace 9.5 3.2 2.5 -7.0 12.7%
Slide 26: [Reference] Prospects for Net Sales by Business Segment
[Reference] Prospects for Net Sales by Business Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year vs. FY2019 FY2019 FY2018 FY2019 Change Projections Projections 2H FY2019 announced 1H Projections Projections FY2019/FY2018 Apr, 2019 Connector 1,979 1,062 703 1,765 -214 89% -110
Slide 27: [Reference] Capital Investment & Depreciation
[Reference] Capital Investment & Depreciation Technology to Inspire Innovation (JPY in 100 millions) 245 222 Capital Investments 112 126 119 110 96 91 100 93 97 111 Depreciation 191 204 and others 1H/FY2018 2H/FY2018 1H/FY2019 2H/FY2019 1H/FY2020 (Depreciation and others include disposal of fixed as
Slide 28: [Reference] Connectors for ADAS
[Reference] Connectors for ADAS Technology to Inspire Innovation ▶ ADAS（Advanced Driver Assistance System) Connector for Connector for high- Connector for body- Compact waterproof onboard camera speed transmission based ECU in-line connector MX55 Series MX68 Series MX77 Series MX80 Series Connectors
Slide 29: [Reference] Connectors for Electric Vehicle
[Reference] Connectors for Electric Vehicle Technology to Inspire Innovation ▶ EV（Electric Vehicle） EV Charging Connector for battery High-current, high- Service Plug KW Series monitoring ECU voltage connector Service Plug: Plug for safe operation by shutting off power circuit during maintenance, et
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