Harada Industry Co., Ltd. · TSE:6904
Harada Industry — FY2012 Earnings Presentation
38 slides from Harada Industry's earnings presentation, Jun 24, 2013
Slide 1: Financial Results Presentation Slides for the Year Ended in March, 2013
Financial Results Presentation Slides for the Year Ended in March, 2013 Harada Industry Co., Ltd. June 24, 2013 This slides contains forward looking statements based on prerequisites, forecasts and plans available as of June 24, 2013. Actual results may differ materially from forward looking stateme
Slide 2: Contents
I. Corporate Overview Contents 4 1. Corporate Profile ....................................................................................................................................................... 2. Global Network ..…………………………………………..……………………………………………………………………………… 5 3. Major Products ……………
Slide 3: I. Corporate Overview
I. Corporate Overview HARADAatf
Slide 4: 1. Corporate Profile
1. Corporate Profile ◆ Established March 1958 ◆ Headquarters Omori Bellport B-4F, 26-2 Minami-Ohi, 6-Chome Shinagawa-ku, Tokyo, Japan ◆ Capital Stock 2,019 million yen ◆ Number of 274 Employees Consolidated: 5,355 (including 1,879 temporary workers) ◆ Consolidated Domestic: 1, Overseas: 11 Subsidiar
Slide 5: 2. Global Network
2. Global Network NIPPON ANTENNA (EUROPE) LIMITED *In liquidation HARADA INDUSTRY OF AMERICA, INC. HARADA INDUSTRIES (EUROPE) LIMITED HARADA INDUSTRIES (MEXICO), S.A. DE C.V. HARADA EUROPE R&D CENTRE DALIAN HARADA INDUSTRY CO., LTD. SHANGHAI HARADA NEW HARADA INDUSTRIES VIETNAM LIMITED AUTOMOTIVE AN
Slide 6: 3. Major Products 1
3. Major Products 1 Roof Antenna Designed to support AM+FM radio, digital radio (DAB), Amplifier satellite radio, for Glass Antenna digital TV (DTV) and so forth. Amplifying received Multi-band available. electric signal. Film Antenna for DTV Onboard Noise Filter Reduce the noise of electric ETC/DSR
Slide 7: 3. Major Products 2
3. Major Products 2 LPA (Low Profile Antenna) Hidden Antenna Designed to be integrated into roof, trunk lid and bumper. Multi-band available. Designed to support AM+FM Circuit Board radio, satellite radio, telematics Antenna application (GPS, mobile phone). Coaxial Cables Connecting antennas and aud
Slide 8: II. Financial Results for FY2012 and Financial Plan for FY2013 (Consolidated)
II. Financial Results for FY2012 and Financial Plan for FY2013 (Consolidated) 8
Slide 9: 1. Net Sales Trend
1. Net Sales Trend (Hundred millions of yen) 350 Europe 310 North and Central Americas 299 300 33 Asia 277 23 Japan 21 250 231 217 224 217 214 217 88 98 207 20 19 200 20 101 16 12 16 19 178 51 56 49 9 71 66 51 79 62 150 2 7 13 18 52 73 5 19 34 38 100 23 144 130 144 141 135 124 50 102 92 96 95 105 0
Slide 10: 2. Summary of Consolidated Statement of Income
2. Summary of Consolidated Statement of Income (Millions of yen) FY2011 Composition FY2012 Composition ratio ratio Increase or Previous Current decrease year (%) year (%) Net sales 21,727 100.0％ 29,935 100.0％ 8,207 Operating income 1,070 4.9％ 342 1.1％ (727) Ordinary income 1,021 4.7％ 590 2.0％ (430)
Slide 11: 3. Net Income Trend
3. Net Income Trend 1,600 (Millions of yens) 1,234 1,200 1,112 1,000 977 861 847 800 561 474 400 400 0 (64) (400) (800) (766) FY2003 04 05 06 07 08 09 10 11 12 13 Current Next year Year (forecasts) 11
Slide 12: 4. Changes in Operating Income
4. Changes in Operating Income (Millions of yen) Increase in gross profit - Increase in net sales Increase in selling, general and - 2500 Rise in cost to sales ratio administrative expenses - Increased on increase in net sales - Increased in distribution expenses 2000 - Increased in costs temporaril
Slide 13: 5. Summary of Consolidated Balance Sheet
5. Summary of Consolidated Balance Sheet (Millions of yen) FY2011 Component FY2012 Component Increase or Previous ratio Current ratio decrease year (%) year (%) Current assets 14,361 73.8％ 20,481 76.9％ 6,120 Noncurrent assets 5,102 26.2％ 6,167 23.1％ 1,065 Total assets 19,464 100.0％ 26,649 100.0％ 7,1
Slide 14: 6. Sales Breakdown by Reported Segments (FY2011 Actual vs. FY2012 Actual)
6. Sales Breakdown by Reported Segments (FY2011 Actual vs. FY2012 Actual) Europe FY2011 Previous year (Millions of yen) 7.5% Previous Current North and year year Central Japan Americas 44.2% Impact of 30.7% Asia Increase or Net FY2011 FY2012 foreign decrease change 17.6% exchange Japan 9,598 12,445
Slide 15: 7. Sales Breakdown by Reported Segments (FY2012 Actual vs. FY2013 Plan)
7. Sales Breakdown by Reported Segments (FY2012 Actual vs. FY2013 Plan) Europe FY2012 7.8% Current year (Millions of yen) North and Current Japan Next year (forecasts) Central year Americas 41.6% 29.7% Asia Increase or 20.9% FY2012 FY2013 decrease Japan 12,445 10,508 (1,936) Asia 6,264 7,318 1,054 F
Slide 16: 8. Consolidated Cash Flow Trend
8. Consolidated Cash Flow Trend (Millions of yen) 4,000 Cash flows from operating activities 3,000 Cash flows from investing activities Cash flows from financing activities 2,000 1,000 0 (1,000) (2,000) (3,000) FY2003 04 05 06 07 08 09 10 11 12 Previous Current Year year FY2003 04 05 06 07 08 09 10
Slide 17: 9. Capital Expenditure Trend / 10. Depreciation Trend
9. Capital Expenditure Trend (Millions of yen) 2,000 1,500 1,385 1,139 979 1,000 723 666 636 643 536 502 500 186 0 FY2003 04 05 06 07 08 09 10 11 12 10. Depreciation Trend (Millions of yen) 1,200 1,000 824 892 807 800 662 653 674 708 656 600 567 541 400 200 0 FY2003 04 05 06 07 08 09 10 11 12 17
Slide 18: 11. Quarterly Net Sales Trend / 12. Quarterly Operating Income Trend
11. Quarterly Net Sales Trend (Millions of yen) 10,000 7,399 7,893 7,303 7,338 8,000 5,372 5,672 5,924 6,000 5,217 5,176 4,757 4,000 2,000 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2010 FY2011 FY2012 12. Quarterly Operating Income Trend (Millions of yen) 600 360 423 399 400 261 220 180 200 68 53 0 (14) △ 20
Slide 19: 13. Dividend and Stock Price Trend
13. Dividend and Stock Price Trend (Yen) 1,400 25.0 1,200 20.0 Dividends 20.0 Stock prices (highest) 1,000 15.0 15.0 Stock prices (lowest) 800 12.5 15.0 10.0 600 10.0 7.5 7.5 7.5 7.5 400 5.0 5.0 5.0 200 0 0.0 FY2003 04 05 06 07 08 09 10 11 12 13 Stock Price Trend (Yen) FY2003 04 05 06 07 08 09 10 11
Slide 20: 14. Foreign Exchange Rate Trend
14. Foreign Exchange Rate Trend Stg. £ US$ RMB Current Rate (Yen) 250 20 225 199.68 233.65 228.01 13.90 200 190.08 15 203.71 175 150 146.44 139.57 10 131.77 118.06 119.12 114.15 126.45 119.82 125 107.15 104.19 5 100 91.00 92.07 81.45 86.58 77.73 75 0 FY2003 04 05 06 07 08 09 10 11 12 Average Rate (Y
Slide 21: III. Issues for Management
III. Issues for Management 21
Slide 22: 1. Operating Environment
1. Operating Environment Increase in automobile manufacturing volume Development in automobile media, communications and ITS Global expansion by Japanese automakers Many opportunities are in store for exponential growth going forward. 22
Slide 23: 2. Recent Developments
2. Recent Developments Acquired the automotive antenna business as well as overseas bases from Nippon Antenna Co., Ltd. Solidified relationships with major Japanese automakers Resolved to concentrate management resources in automotive antenna businesses 23
Slide 24: 3. New Long-term Vision NEXSTAGE
3. New Long-term Vision NEXSTAGE 19 (For Fiscal Years 2013 to 2018) To be a global solution provider with strengthened product competitiveness, capability for providing services and capability for taking the lead in the competition as well as to enhance the corporate value with optimized corporate f
Slide 25: 4. New Long-term Business Plan
4. New Long-term Business Plan 1 Two pillars that enable achieving our new long-term vision Strengthen competitive advantages Establish an optimal corporate foundation 25
Slide 26: 4. New Long-term Business Plan: Strengthen competitive advantages
4. New Long-term Business Plan 2 Strengthen competitive advantages 1) Improve product competitiveness 2) Improve capability for providing services 26
Slide 27: 4. New Long-term Business Plan: Strengthen Competitive Advantages
4. New Long-term Business Plan 3 Strengthen Competitive Advantages 1) Improve product competitiveness 2) Improve capability for providing services - Strengthen cost competitiveness - Develop new products and upgrade existing products - Ensure adequate quality of products - Establish optimal supply c
Slide 28: 4. New Long-term Business Plan: Strengthen Competitive Advantages
4. New Long-term Business Plan 4 Strengthen Competitive Advantages 1) Improve product competitiveness 2) Improve capability for providing services - Improve capabilities in collecting and analyzing information - Strengthen capabilities in research and planning - Enhance capabilities in proposing pro
Slide 29: 4. New Long-term Business Plan: Optimal corporate foundation
4. New Long-term Business Plan 5 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management 29
Slide 30: 4. New Long-term Business Plan: Optimal corporate foundation
4. New Long-term Business Plan 6 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Reinforce collaboration among the Group - Improve and streamline working environment and operations - Enhance de
Slide 31: 4. New Long-term Business Plan: Optimal corporate foundation
4. New Long-term Business Plan 7 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Establish a highly reliable brand as “the one and only automotive antenna supplier in the world with a global ne
Slide 32: 4. New Long-term Business Plan: Optimal corporate foundation
4. New Long-term Business Plan 8 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Enhance headquarters functions - Maximize synergy within the Group by explicitly dividing work among each Group
Slide 33: 4. New Long-term Business Plan
4. New Long-term Business Plan 9 New Long-term Previous Plans Business Plan Medium-term 3 years 2 years Term 9 years 6 years (3 years × 3 terms) (2 year × 3 terms) 33
Slide 34: 5. Quantitative Targets for FY2018 (Consolidated)
5. Quantitative Targets for FY2018 (Consolidated) Net sales Over 40 billion yen Operating income margin Over 10.0％ 34
Slide 35: Reference. Automobile Manufacturing Trend
Reference. Automobile Manufacturing Trend 35
Slide 36: 1. Domestic Automobile Manufacturing Trend
1. Domestic Automobile Manufacturing Trend 3,500 FY2010 FY2011 FY2012 3,000 2,500 2,000 1,500 1,000 500 0 Toyota Nissan Mitsubishi Mazda Honda Suzuki Others Number of vehicle production by car manufacturers (Thousands) Toyota Nissan Mitsubishi Mazda Honda Suzuki Others Total FY2010 3,003 1,072 663 8
Slide 37: 2. Overseas Automobile Manufacturing Trend
2. Overseas Automobile Manufacturing Trend (Thousands) 35,000 *Except This slides contains forward looking statements Asia Europe Japan based on prerequisites, forecasts and plans 30,000 North and Central America available as of June 24, 2013. Actual results may differ materially from forward lookin
Slide 38: HARADA
HARADA HARADAatf