Fujikura Ltd · TSE:5803
Fujikura — FY2018 Earnings Presentation
27 slides from Fujikura's earnings presentation, May 14, 2019
Slide 1: FY2018 Financial Results
FY2018 Financial Results May 14, 2019
Slide 2: Fujikura
“l a F Fujikura
Slide 3: Contents
Contents 1. FY2018 Financial Results and FY2019 Forecast 2. By Segment 3. Shareholder Return 2
Slide 4: 1. FY2018 Financial Results and FY2019 Forecast
1. FY2018 Financial Results and FY2019 Forecast 3
Slide 5: FY2018 Financial Results
FY2018 Financial Results (Unit : Yen in billion) FY2018-FY2017 FY2017 FY2018 Change Net Sales 740.0 710.7 (29.2) Operating Income 34.3 27.6 (6.6) Ratio of Operating Income to 4.6 3.9 (0.7) Net Sales (%) Share of Profit of Entities Accounted for Using Equity Method 1.5 1.2 (0.2) Ordinary Income (Loss
Slide 6: Summary of FY2018 Business Results
Summary of FY2018 Business Results Net sales decreased on a YoY basis due to the impact of a slowdown in demand for smartphones at the Electronics Business Subcompany in addition to the reorganization of a domestic electric wire sales company in the previous fiscal year. Operating income decreas
Slide 7: FY2018 Contributing Factors to Net Sales Change
FY2018 Contributing Factors to Net Sales Change (year-on-year basis) Net Sales (Unit : Yen in billion) Impact of the Restructuring Effects of of Domestic Electric Wire Power & Forex Telecommunication (1.1) Sales Company in FY2017 Systems Business (14.0) (0.7) Electronics Automotive Business Business
Slide 8: FY2018 Contributing Factors to Operating Income Change
FY2018 Contributing Factors to Operating Income Change (year-on-year basis) Operating Income (Unit : Yen in billion) Overhead transmission cable project in Power & Bangladesh Telecommunication Systems (2.3) Business Electronics (1.7) Business Other (2.0) (0.5) 34.3 6.6 lower than FY2017 27.6 FY2017
Slide 9: FY2018 Extraordinary Profit and Loss
FY2018 Extraordinary Profit and Loss (Unit: Yen in billion) FY2017 FY2018 Operating Income 34.3 27.6 Share of Profit of Entities Accounted for Using Equity Method 1.5 1.2 Ordinary Income 34.1 21.0 Includes the gain on sales of investment securities Extraordinary Income 1.0 5.7 Extraordinary Loss 6.5
Slide 10: Consolidated B/S (1)
Consolidated B/S (1) （Unit: Yen in billion） As of March As of March Change 31, 2018 31, 2019 〈Assets〉 638.0 638.3 +0.2 Current Assets 324.1 323.2 (0.9) Cash and Deposits 34.2 36.7 +2.5 Decreases mainly due to Electronics Business Company Notes and Account and Automotive Products 151.2 141.5 (9.6) Co
Slide 11: Consolidated B/S (2)
Consolidated B/S (2) （Unit: Yen in billion） As of March As of March Change 31, 2018 31, 2019 Total 638.0 638.3 +0.2 (Treasury Stock) ((6.3)) ((6.3)) (+0.0) 〈Liability〉 396.0 397.4 +1.3 Notes and Account 77.1 64.9 (12.1) Payable Interest-bearing Debt 239.3 253.5 +14.1 Increase in capital Other Curren
Slide 12: FY2019 Forecast
FY2019 Forecast (Unit : Yen in billion) FY2019 Forecast FY2018 1H FY2019 FY2019 －FY2018 Results Results Forecast Forecast Change Net Sales 710.7 340.0 690.0 (20.7) Operating Income 27.6 13.0 28.0 +0.3 Ratio of Operating Income to Net Sales(%) 3.9 3.8 4.1 +0.2 Share of Profit of Entities Accounted fo
Slide 13: FY2019 Forecast
FY2019 Forecast Net sales are expected to decrease mainly due to the impact of foreign exchange rates. Operating income is expected to be similar to the previous fiscal year due to the cost improvement of Automotive Products Subcompany and the cancellation of material cost increase in constructi
Slide 14: FY2019 Forecast Contributing Factors to Net Sales Change
FY2018 Results / FY2019 Forecast Contributing Factors to Net Sales Change (year-on-year basis) Net Sales (Unit : Yen in billion) Effects of Power & Forex Telecommunication Systems Electronics Automotive Business Business Business Other (26.6) (10.7) +2.0 (0.0) +14.5 690.0 710.7 20.7 lower than FY201
Slide 15: FY2019 Forecast Contributing Factors to Operating Income Change
FY2018 Results / FY2019 Forecast Contributing Factors to Operating Income Change (year-on-year basis) Operating Income (Unit : Yen in billion) Power & Telecommunication Overhead Systems Effects of transmission cable Business Other Automotive Forex project in Business +0.5 Bangladesh (3.1) +2.1 (2.6)
Slide 16: 2. By Segment
F Fujikura 2. By Segment
Slide 17: Financial Results and Forecast by Segment
Financial Results and Forecast by Segment （Unit: Yen in billion） Net Sales Operating Income and Ratio of Operating Income to Net Sales 1H 2019 FY2019 1H 2019 FY2019 Segment FY2017 FY2018 FY2017 FY2018 Forecast Forecast Forecast Forecast Power & 22.3 17.7 6.3 14.5 Telecommunication 370.1 354.8 174.3
Slide 18: Power & Telecommunication Systems Company
Power & Telecommunication Systems Company In FY2018, sales decreased due to the reorganization of a domestic electric wire sales company in FY2017. Operating income decreased due to an intensified competition in domestic and overseas markets and an increase in cost of Bangladesh overhead transmiss
Slide 19: Electronics Business Subcompany
Electronics Business Subcompany In FY2018, sales and operating income decreased due to the decline in demand for FPCs and connectors, mainly for smartphone in 4Q. In FY2019, although sales are expected to decrease mainly due to the appreciation of the yen and due to smartphones, but operating in
Slide 20: Automotive Products Subcompany
Automotive Products Subcompany In FY2018, although emergency cost for increase of turnover rate in Eastern Europe productoion reduced, operating loss was similar to the previous year due to the effect of reducing production by customers in Asia. In FY2019, although sales are expected to fall due
Slide 21: Real Estate Business Company
Real Estate Business Company Revenues from leasing real estate properties continue to contribute to consolidated operating income. （Unit: Yen in billion） Net Sales and Ratio of Operating Income to Net Sales Real Estate Ratio of Operating Income to Net Sales Stable revenues from leasing properties
Slide 22: CAPEX and Depreciation Cost
CAPEX and Depreciation Cost （Unit: Yen in billion） FY2019 FY2017 FY2018 Forecast CAPEX 42.5 55.7 37.0 (for manufacturing 40.1 54.3 35.5 business) (for real estate 2.4 1.3 1.5 business) Depreciation Cost 26.8 31.5 37.0 (for manufacturing 24.8 29.4 35.0 business) (for real estate 1.9 2.0 2.0 business)
Slide 23: Interest-bearing Debts, Net Financial Profit and Free Cash Flow
Interest-bearing Debts, Net Financial Profit and Free Cash Flow （Unit: Yen in billion） FY2017 FY2018 1H 2H Full year 1H 2H Full year Interest- 241.0 239.3 239.3 269.4 253.5 253.5 bearing Debts Net Financial (0.2) (0.7) (1.0) (0.9) (1.0) (2.0) Profit/Loss Free Cash (11.4) 7.9 (3.4) (18.8) 16.4 (2.3)
Slide 24: 3. Shareholder Return
F Fujikura 3. Shareholder Return
Slide 25: Profit Return
Profit Return Basic Policy of 2020 Mid-term Dividend payout ratio 20% or higher FY2018 Forecast Dividends 12.0 yen per share (Interim 7.0 yen per share, Year-end 5.0 yen per share, 3.4 billion yen) FY2017 Results 14.0 yen per share (Interim 7.0 yen per share, Year-end 7.0 yen per share) (2.0 y
Slide 26: Profit Return
Profit Return Basic Policy of 2020 Mid-term Dividend payout ratio 20% or higher FY2019 Forecast Dividends 10.0 yen per share (Interim 5.0 yen per share, Year-end 5.0 yen per share, 2.8 billion yen) (2.0 yen decrease compared with FY2018) Dividend Payout ratio in FY2019 23.8% 25
Slide 27: Special Notes
Special Notes: Statements in this presentation that relate to future to results and events (including statements regarding Fujikura's revenue and earnings guidance) and based on Fujikura's current expectations. Actual results in future periods may differ materially form those currently expected beca