JTEKT Corporation · TSE:6473
JTEKT — Q3 FY2020 Earnings Presentation
34 slides from JTEKT's earnings presentation, Feb 3, 2021
Slide 1: IR Presentation for the Third Quarter of Fiscal Year Ending March 2021
IR Presentation for the Third Quarter of Fiscal Year Ending March 2021 February 3, 2021 1 JTEKT CORPORATION
Slide 2: Financial points
Financial points １．In the third quarter (Oct. – Dec.), posted a profit due to further sales recovery, cost improvement and fixed cost reduction effect. In the cumulative third quarter (Apr. – Dec.), the results of efforts to improve the business structure have been shown, however, the impact of the
Slide 3: Contents
１． Results for the Third Quarter of Fiscal Year Ending March 2021 P４ ２．Forecasts for Fiscal Year 2020, Ending March 2021 P１０ ３．Appendix P１６ ３-１．Management indicators P１６ ３-２．Changes in fixed costs P１８ ３-３．Quarterly Result Trend（ by region / business ）P１９ ３-４．Third quarter result（ by region / busines
Slide 4: 1-1) Consolidated Performance
1-1）Consolidated Performance ■ Sales declined in all business segments and regions except for China due to heavy impact from sales decrease in 1Q ■ Profit was turnaround due to earning structure improvement in 2Q in spite of sales decrease and significant loss. Accumulated loss was minimized by prof
Slide 5: 1-2) Quarterly Result Trend
1-2）Quarterly Result Trend ■ Sales recovered steadily after 1Q bottom and increased Y-on-Y in 3Q. ■ Profit reached 16.6B JPY in 3Q due to earning structure improvement as well as sales recovery. Sales revenue Business profit Unit：billions of yen [Rate of change] Unit：billions of yen ● Ratio to Reven
Slide 6: 1-3) Results by Region
1-3）Results by Region （ Quarterly Result Trend 2Q: July-September → 3Q: October-December ） ■ Sales recovered to almost the previous year level in 3Q. Asia recovered steadily in 3Q in spite of the concern. ■ Accumulate profit in all regions and minimize loss in Europe. Sales revenue Business profit U
Slide 7: 1-4) Result by Business
1-4）Result by Business （ Quarterly Result Trend 2Q: July-September → 3Q: October-December ） ■ Sales are on recovery trend due to OEMs production recovery ■ Bearing business was turnaround in 3Q and profit was increased in other business segments Sales revenue Business profit Unit：billions of yen [Ra
Slide 8: 1-5) Business Profit Analysis
1-5）Business Profit Analysis Unit：billions of yen Earning structure 1Q ＋6.3 2Q ＋14.1 ＋30.6 3Q ＋10.2 1Q 11.6 Labor cost ＋12.5 2Q 11.5 (including Subsidies for 3Q 9.2 1Q ▲0.3 employment adjustment 2Q ▲0.4 +3.2) 3Q ▲0.1 Repair costs ＋5.2 R & D expenses ＋5.2 Travel expenses, etc ＋5.1 +28.0 1Q ＋4.5 1Q ＋0
Slide 9: Contents
１． Results for the Third Quarter of Fiscal Year Ending March 2021 P４ ２．Forecasts for Fiscal Year 2020, Ending March 2021 P１０ ３．Appendix P１６ ３-１．Management indicators P１６ ３-２．Changes in fixed costs P１８ ３-３．Quarterly Result Trend（ by region / business ）P１９ ３-４．Third quarter result（ by region / busines
Slide 10: 2-1) Forecasts for Fiscal Year Ending March 2021
2-1）Forecasts for Fiscal Year Ending March 2021 Upwardly revised sales revenue and profit at each stage, reflecting the business results up to the third quarter, demand trends in the automotive industry, cost improvement effects, and curbing of labor costs and expenses. ( ):Ratio to Revenue billions
Slide 11: 2-2) Forecasts - Quarterly Result Trend
2-2） Forecasts －Quarterly Result Trend ■4Q(Jan-Mar) sales : YoY decrease in Japan and Europe, flat in North America, Asia and others, increase in China ■4Q(Jan-Mar) profit : Decreased, but expected to be 14.6 billion yen by continuing efforts to improve business structure through the third quarter S
Slide 12: 2-3) Forecasts - Business Profit Analysis
2-3）Forecasts － Business profit Analysis Unit：billions of yen Earning structure ＋45.5 12 JTEKT CORPORATION
Slide 13: 2-4) Forecasts - by Region
2-4） Forecasts － by Region Sales revenue Business profit Unit：billions of yen [Rate of change] 20/3 21/3 Unit：billions of yen (Ratio to Revenue) 20/3 21/3 Currency Currency Increase/ Increase / decrease difference decrease difference ▲1.8 ▲17.0 ▲76.8 Japan ＋25.0 ▲101.9 ▲16.8% Japan [▲12.7%] Europe ▲
Slide 14: 2-5) Forecasts - by Business
2-5） Forecasts －by Business Sales revenue Business profit Unit：billions of yen [Rate of change] 20/3 21/3 Unit：billions of yen (Ratio to Revenue) 20/3 21/3 Currency Increase / Currency ▲121.9 difference Increase / decrease difference decrease [▲17.0%] Steering ▲1.6 ▲13.9 Steering ▲15.1 ▲106.7 ▲14.9%
Slide 15: Contents
１． Results for the Third Quarter of Fiscal Year Ending March 2021 P４ ２．Forecasts for Fiscal Year 2020, Ending March 2021 P１０ ３．Appendix P１６ ３-１．Management indicators P１６ ３-２．Changes in fixed costs P１８ ３-３．Quarterly Result Trend（ by region / business ）P１９ ３-４．Third quarter result（ by region / busines
Slide 16: 3-1) Inventories / Interest-bearing debt / Cash reserves
3-1）Inventories／Interest-bearing debt・Cash reserves Inventories Interest-bearing debt・Cash reserves Inventory turnover month Left bar Interest-bearing debt NET DE ratio Right bar Cash reserves 1.9 0.38 0.37 1.4 1.4 1.4 1.6 0.29 0.29 0.24 Unit：billions of yen 328.1 183.6 190.8 178.3 175.0 294.6 158.2
Slide 17: 3-1) Cash flows / ROE, ROA
3-1）Cash flows／ROE・ROA Cash flows ROE・ROA Unit：billions of yen Free C/F ROE ROA 31.2 0.9 27.6 23.3 10.1 9.7 ▲30.1 Upper row Sales C/F Lower row Investment C/F 99.2 100.0 103.0 4.3 4.2 4.6 66.3 61.6 1.9 ▲0.3 ▲1.5 ▲0.8 ▲43.0 ▲3.6 ▲68.0 ▲75.3 ▲99.0 ▲91.7 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017
Slide 18: 3-2) Changes in fixed costs
3-2）Changes in fixed costs Depreciation and Research and Capital expenditures amortization development expenses Upper row January-March Unit：billions of yen Unit：billions of yen ● Ratio to Revenue Unit：billions of yen Lower row April-December 4.6% 4.5% 4.2% 3.7% 3.8% 75.2 75.0 66.4 66.6 66.9 63.6 64
Slide 19: 3-3) Quarterly Result Trend - Japan
3-3）Quarterly Result Trend－Japan Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 4.5% 161.6 3.2% 2.5% 155.4 153.4 1.9% 1.7% 1.3% 144.9 143.3 139.4 6.9 4.9 2.7 3.6 2.4 2.1 91.6 ▲22.1% ▲20.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY2019
Slide 20: 3-3) Quarterly Result Trend - Europe
3-3）Quarterly Result Trend－Europe Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue ▲1.0% ▲1.6% ▲2.0% ▲3.5% ▲4.0% ▲4.0% 57.2 46.0 47.9 46.1 46.3 ▲0.5 ▲0.7 39.4 ▲1.6 ▲1.8 ▲1.5 ▲0.9 18.9 ▲5.1 ▲27.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020
Slide 21: 3-3) Quarterly Result Trend - North America
3-3）Quarterly Result Trend－North America Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 2.9% 3.5% 78.8 1.4% 1.1% 0.4% 0.8% 72.7 68.7 72.7 68.4 68.5 2.3 2.2 1.0 0.7 0.2 0.5 32.1 ▲20.2% ▲6.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY201
Slide 22: 3-3) Quarterly Result Trend - China
3-3）Quarterly Result Trend－China Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 11.2% 10.4% 10.0% 9.3% 9.5% 8.3% 4.7 45.7 3.7 3.7 3.5 42.3 39.6 3.3 3.4 37.2 33.8 33.4 20.7 ▲0.0 ▲0.3% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY2019 FY20
Slide 23: 3-3) Quarterly Result Trend - Asia & Others
3-3）Quarterly Result Trend－Asia & Others Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 10.4% 8.2% 7.6% 6.5% 8.1% 5.8% 5.1 4.2 3.7 3.6 3.0 2.1 52.0 49.1 47.5 46.4 46.4 37.9 ▲3.4 15.2 ▲22.9% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY20
Slide 24: 3-3) Quarterly Result Trend - Mechanical components
3-3）Quarterly Result Trend －Mechanical components Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 4.9% 2.6% 2.3% 2.1% 1.6% 0.7% 16.2 325.0 315.1 330.6 311.9 8.3 7.2 305.3 289.6 6.6 4.6 1.9 169.2 ▲17.0% ▲28.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q F
Slide 25: 3-3) Quarterly Result Trend - Machine tools and others
3-3）Quarterly Result Trend－Machine tools and others Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 9.1% 8.1% 7.0% 5.9% 4.7% 0.6% 44.5 42.4 4.0 37.4 36.9 35.2 3.0 2.9 32.6 ▲5.6% 2.1 26.0 1.6 0.1 ▲1.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY
Slide 26: 3-3) Quarterly Result Trend - Steering
3-3）Quarterly Result Trend－Steering Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 4.6% 3.9%3.6% 3.7% 1.5% 2.2% 190.1 183.8 179.9 182.9 164.0 157.6 8.5 7.3 6.5 6.7 3.4 2.4 88.1 ▲16.1% ▲14.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY20
Slide 27: 3-3) Quarterly Result Trend - Drivelines
3-3）Quarterly Result Trend－Drivelines Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 6.8% 3.9% 2.3% 0.4% 1.5% 1.2% 52.3 3.5 47.5 45.6 1.7 38.5 38.0 36.3 0.8 0.5 0.5 0.1 25.2 ▲23.1% ▲5.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY2019 F
Slide 28: 3-3) Quarterly Result Trend - Bearing
3-3）Quarterly Result Trend－Bearing Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 4.4% 0.1% 0.6% 4.1 ▲0.7% ▲0.6% ▲1.1% 0.5 0.0 96.8 96.7 92.6 93.7 94.4 86.3 ▲0.6 ▲0.5 ▲0.9 55.8 ▲15.6% ▲8.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY201
Slide 29: 3-3) Quarterly Result Trend - Machine tools
3-3）Quarterly Result Trend－Machine tools Sales revenue Business profit Unit：billions of yen Unit：billions of yen ● Ratio to Revenue 10.6% 9.2% 7.1% 8.4% 5.5% 1.3% 44.1 42.3 4.6 ▲4.1% 36.8 36.8 3.5 34.7 32.4 3.3 2.6 25.6 1.9 0.4 ▲1.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2019 FY2020 FY201
Slide 30: 3-4) Third quarter result - by Region
3-4） Third quarter result － by Region Sales revenue Business profit Unit：billions of yen [Rate of change] 19 3Q 20 3Q Unit：billions of yen (Ratio to Revenue) 19 3Q 20 3Q Currency Currency Increase / Increase / decrease ▲59.2 difference difference decrease [▲13.3%] Japan ＋25.0 ▲84.2 ▲19.0% Japan ▲1.1
Slide 31: 3-4) Third quarter result - by Business
3-4） Third quarter result －by Business Sales revenue Business profit Unit：billions of yen [Rate of change] 19 3Q 20 3Q Unit：billions of yen (Ratio to Revenue) 19 3Q 20 3Q Currency Increase / Currency ▲123.3 difference Increase / decrease differenc decrease [▲22.3%] Steering ▲0.7 ▲22.1 Steering ▲8.5
Slide 32: 3-5) Business Profit Analysis - Steering / Drivelines
3-5）Business profit Analysis －Steering／Drivelines Unit：billions of yen Earning structure ＋3.0 Steering Unit：billions of yen Earning structure ＋3.3 Drivelines +1.6 32 JTEKT CORPORATION
Slide 33: 3-5) Business Profit Analysis - Bearing / Machine tools
3-5）Business profit Analysis － Bearing／Machine tools Mechatronics Business Units Unit：billions of yen Earning structure ＋18.9 0.0 +0.0 +13.5 +1.3 Bearing Unit：billions of yen Mechatronics Business Units Earning structure ＋5.1 Machine tools 33 JTEKT CORPORATION
Slide 34: 3-6) Return to Shareholders
3-6）Return to Shareholders Dividend payout ratio Dividend payout ratio (%) 61.2 30% 41.1 39.5 26.9 26.3 27.4 29.6 30.3 29.7 13.50 17.7 - - - - Dividends Upper row Year-end dividend 42 42 43 44 38 Unit：yen per share Lower row Interim dividend 34 24 21 21 22 22 16 19 17 18 20 16 16 16 16 13 11 10 6 9