Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — FY2015/16 Earnings Presentation
40 slides from Johnson Electric's earnings presentation, Jul 13, 2016
Slide 1: Johnson Electric Holdings Limited FY2015/16 Annual Results
JOHNSON ELECTRIC HOLDINGS LIMITED FY2015/16 Annual Results July 2016
Slide 2: Agenda
Group Overview Key Financial Highlights Operational Results AML Acquisition Outlook Appendix FY2016/17 June Quarter Page 2
Slide 3: Johnson Electric Group Overview
JOHNSON ELECTRIC GROUP OVERVIEW Johnson Electric is the global leader in custom designed motion subsystems, including motors, solenoids, switches and flexible interconnects. We serve a broad range of industry segments including automotive, building automation and security, business machines, securit
Slide 4: Company Vision and Brand Promise
COMPANY VISION AND BRAND PROMISE Company Vision To be the world's definitive provider of innovative and reliable motion systems Brand Promise “Technology Leadership” “The Safe Choice” Page 4
Slide 5: Key Milestones 1959 – 2016
KEY MILESTONES 1959 – 2016 SALES 2000-2016: Going Global US$2.2bn US$2.1bn US$1.7bn 1982-1999: Leveraging China to supply the world US$1.1bn Early Years: Hong Kong US$677m family business US$251m US$126m US$54m US$16m Founded AC Motor Opened Listed on Acquired Acquired Build Acquired by Wang busines
Slide 6: APG Applications
APG APPLICATIONS Page 6
Slide 7: Stackpole Applications
STACKPOLE APPLICATIONS Pumps Powder Metals Key Engine Oil Transmission Vacuum Carriers Clutch Gears & Products Pumps Oil Pumps Pumps Component Sprocket s s One of the leading oil pump manufacturer in One of the leading powder metals manufacturer Market North America and Europe focusing in automotive
Slide 8: IPG Applications
IPG APPLICATIONS Medical Devices Smart Meters Circuit Breakers Lawn & Garden Power Tools Personal Care Power Sports HVAC Building Automation Business Machines Digital Security Home Technologies Food & Beverages Industrial Equipment Special Vehicles Optronics Page 8
Slide 9: Agenda
Group Overview Key Financial Highlights Operational Results AML Acquisition Outlook Appendix FY2016/17 June Quarter Page 9
Slide 10: Highlights
HIGHLIGHTS Sales, as reported, up 5% from the prior year with the acquisition of Stackpole International. Excluding currency movements and acquired business, sales increased 2% (APG, 5% increase; IPG, 5% decrease) Gross margin decreased to 26.4%, due to wage and salary inflation, especially in China
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS US$ million FY2015/ 16 1 FY2014/ 15 Sales 2,235.9 2,136.1 Gross profit 589.5 632.4 Gross margin 26.4% 29.6% Profit attributable to shareholders 172.7 210.9 Diluted earnings per share (US Cents) 19.75 23.60 EBITDA 2 334.3 335.5 EBITDA margin 15.0% 15.7% Free cash flow from operat
Slide 12: Agenda
Group Overview Key Financial Highlights Operational Results AML Acquisition Outlook Appendix FY2016/17 June Quarter Page 12
Slide 13: Profitability Review FY2015/16 vs. FY2014/15
PROFITABILITY REVIEW FY2015/16 vs. FY2014/15 Increase / (decrease) US$ million FY2015/ 16 1 FY2014/ 15 in profit Sales 2,235.9 2,136.1 99.8 Gross profit 589.5 632.4 (42.9) Gross margin % 26.4% 29.6% Other income and gains, net 28.5 17.9 10.6 Selling and administrative expenses (“ S&A” ), excluding n
Slide 14: Sales Changes FY2015/16 vs. FY2014/15
SALES CHANGES FY2015/16 vs. FY2014/15 Note: Numbers do not add across due to the effect of rounding Page 14
Slide 15: Group Sales by Business - APG
GROUP SALES BY BUSINESS - APG Page 15
Slide 16: Group Sales by Business - IPG
GROUP SALES BY BUSINESS - IPG Page 16
Slide 17: Changes in Profit Attributable to Shareholders
CHANGES IN PROFIT ATTRIBUTABLE TO SHAREHOLDERS US$ million 5 (22) (9) (12) 211 180 173 FY2014/15 Volume / mix, Currency FY2015/16 Acquired Nonrecurring FY2015/16 Net profit, pricing and movements, Net profit, business acquisition Net profit, as reported operating costs net excluding transaction as r
Slide 18: Analysis of Cash Flow
ANALYSIS OF CASH FLOW US$ million FY2015/ 16 FY2014/ 15 Change Operating profit 1 207.9 243.0 (35.1) Depreciation and amortisation 114.0 92.5 21.5 EBITDA 321.9 335.5 (13.6) Other non-cash items in profit before taxes 4.8 (1.5) 6.3 Working capital changes 2 (46.4) (21.1) (25.3) Interest paid (4.4) (2
Slide 19: Other Cash Flows
OTHER CASH FLOWS US$ million FY2015/ 16 FY2014/ 15 Change Free cash flow from operations 70.8 155.8 (8 5 . 0 ) Acquisitions and related costs (680.3) (9.2) (671.1) Dividends paid (54.4) (54.3) (0.1) Purchase of shares held for incentive share schemes (22.0) (50.7) 28.7 Purchase of shares for cancell
Slide 20: Dividends & Shares
DIVIDENDS & SHARES ► Final dividend of 34 HK cents per share to be paid for FY2015/16. Total dividend of 49 HK cents for FY2015/16 compared to 48 HK cents paid for FY2014/15 ► 1.7 million shares were purchased for cancellation in FY2015/16 at a total cost of US$5.2 million including brokerage and ca
Slide 21: Working Capital & Capex
WORKING CAPITAL & CAPEX Capital expenditure and 200 depreciation 186 180 18 160 140 120 168 US$ million 120 100 92 80 60 86 67 71 40 20 0 FY2013/14 FY2014/15 FY2015/16 Capital expenditure to depreciation 1.4 1.7 2.2 Capital expenditure - Stackpole Capital expenditure Depreciation Page 21
Slide 22: Engineering Expenditure
ENGINEERING EXPENDITURE Page 22
Slide 23: Agenda
Group Overview Key Financial Highlights Operational Results AML Acquisition Outlook Appendix FY2016/17 June Quarter Page 23
Slide 24: Products & Technologies
PRODUCTS & TECHNOLOGIES Product % of Diagrams Drivers Types Sales (Static & Auto Static) Manual levelers for halogen & Headlamp automatic levelers for Xenon / LED lamps are mandatory in 69% Levelers (Dynamic) EU / Japan / China / India (ADB Actuator) Adaptive lighting technology, an Smart important
Slide 25: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE For the year For the year ended 30 June ended 30 June 2015 2014 € millions € millions Revenue 99.6 90.5 EBITDA 9.2 8.7 Reported profit before taxation 6.5 5.0 and extraordinary items Net profit after taxation and 4.5 3.4 extraordinary items Net assets 22.7 16.7 Page
Slide 26: Agenda
Group Overview Key Financial Highlights Operational Results AML Acquisition Outlook Appendix FY2016/17 June Quarter Page 26
Slide 27: Strategy and Outlook
STRATEGY AND OUTLOOK New acquisitions set to accelerate growth: Stackpole — Rapidly growing market for integrated motorised pumps that improve fuel economy — Worldwide sales, materially increases the Group’s exposure to the North American economy AML Systems — Strength in headlamp levelers complemen
Slide 28: Trends in Automotive – Fuel Economy
TRENDS IN AUTOMOTIVE – FUEL ECONOMY Source: International Council on Clean Transportation - Sep 2015 http://www.theicct.org/global-pv-standards-chart-library Page 28
Slide 29: Trends in Automotive – Emissions
TRENDS IN AUTOMOTIVE – EMISSIONS Source: International Council on Clean Transportation - Sep 2015 http://www.theicct.org/global-pv-standards-chart-library Page 29
Slide 30: Growing Products - APG
GROWING PRODUCTS - APG Fuel Economy • Powertrain Cooling • Engine Management Brushless and Brushed Cooling Fan Module Variable Geometry Turbocharger (CFM) Solutions (VGT) Motors Emission Control • Engine Management Valve Actuators for Automotive Coolant Dosing Solutions for & Refrigerant Circuits Di
Slide 31: Growing Products - IPG
GROWING PRODUCTS - IPG Smart Meters – [ Gas ] Highest intrinsic safety; Best resistance to impurities in gas supply; Compact; Cost effective. [ Electricity ] Highest resistance to shock and Longest service life; Fail safe; Assist electric utilities with increased efficiencies & reduced costs; Compac
Slide 32: FY2015/16 Key Customers
FY2015/16 KEY CUSTOMERS APG STACKPOLE IPG Page 32
Slide 33: Agenda
Group Overview Key Financial Highlights Operational Results AML Acquisition Outlook Appendix FY2016/17 June Quarter Page 33
Slide 34: Global Sales & Support Offices & Engineering Centers
GLOBAL SALES & SUPPORT OFFICES & ENGINEERING CENTERS Argentina Austria Belgium Brazil Canada China France Germany Hong Kong India Italy Israel Japan Korea Netherlands Singapore Switzerland Turkey UK USA Page 34
Slide 35: Worldwide Manufacturing
WORLDWIDE MANUFACTURING Argentina Brazil Canada China France Germany Hungary India Italy Israel Korea Mexico Poland Serbia Switzerland Turkey UK USA Page 35
Slide 36: Agenda
Group Overview Key Financial Highlights Operational Results AML Acquisition Outlook Appendix FY2016/17 June Quarter Page 36
Slide 37: Sales Changes for Apr-Jun FY2016/17 vs. 2015/16
SALES CHANGES FOR APR-JUN FY2016/17 vs. 2015/16 US$ million Increase of 30% 126 18 19 2 (5) 686 526 547 Apr - Jun APG IPG FY2016/17 Currency Stackpole AML Apr - Jun of FY2015/16 Volume / mix Volume / mix Sales, movements of FY2016/17 Sales, and price, net and price, net excluding Sales, as reported
Slide 38: Sales Growth by Region - APG
SALES GROWTH BY REGION - APG Sales Growth/(Decline) % Excluding Acquisitions and Currency Movements APG Asia Europe America TOTAL FY2016/17 Q1 6.3% 5.0% 3.0% 5.1% FY2015/16 Q4 5.3% 3.4% 8.1% 4.9% Q3 5.1% 4.5% 3.0% 4.4% Q2 (7.6%) 7.7% 5.2% 2.3% Q1 13.9% 4.5% 1.6% 6.8% FY2014/15 Q4 11.7% 1.1% (7.4%) 2
Slide 39: Sales Growth by Region - IPG
SALES GROWTH BY REGION - IPG Sales Growth/(Decline) % Excluding Currency Movements IPG Asia Europe America TOTAL FY2016/17 Q1 (5.6%) 16.3% (3.4%) 1.5% FY2015/16 Q4 (16.8%) 15.1% (2.5%) (3.7%) Q3 (17.2%) 6.0% (5.2%) (7.3%) Q2 (12.2%) 0.5% 1.4% (4.5%) Q1 (20.9%) 10.7% 7.2% (3.8%) FY2014/15 Q4 4.1% 6.9
Slide 40: Disclaimer
DISCLAIMER This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric. Words such as “outlook”, “expects”, “anticipates”, “intends
Johnson Electric Holdings — FY2015/16 Earnings Presentation on 6ix