Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — H1 FY2021/22 Earnings Presentation
51 slides from Johnson Electric's earnings presentation, November 2021
Slide 1: Investor Briefing Nov 2021 Interim Results
Investor Briefing Nov 2021 Interim Results For the period ended 30 September 2021
Slide 2: FY2021/22 Investor Briefing Interim Results
FY2021/22 Investor Briefing Interim Results Group Why invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Developments Information
Slide 3: Overview
3 Overview • • • • A global leader in • • • • Listed on the • • • • Workforce of over electric motors, Hong Kong 35,000 across actuators, motion Stock Exchange 22 countries subsystems and since 1984 related electro- mechanical components Automotive Industry Components Products Products and Group Gro
Slide 4: History & Development
4 History & Development Sales US$ 3.2bn Early Years 1982 - 1999 2000 - 2021 Hong Kong HK listed company True global 2.1bn family business leveraging China to multinational supply the world 1.7bn 1.1bn 677m 251m 126m 16m 54m Fiscal 1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2021 Year
Slide 5: Stepping Up to Drive a Sustainable Future
Stepping Up 5 to Drive a Sustainable Future
Slide 6: Strategy Overview
6 Strategy Overview Focusing on Investing in Building a resilient Aligning design Making selective Developing and serving customers technology global and acquisitions that retaining a diverse whose products innovation to manufacturing production bring and talented team are aligned to key provide uni
Slide 7: Why invest in Johnson Electric?
FY2021/22 Investor Briefing Interim Results Group Why invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Developments Information
Slide 8: Why Invest in Johnson Electric
Why Invest in 8 Johnson Electric Innovative motion solutions for consumers’ needs today – and for the future Winning market traction Globally diversified sales and for sustainable growth world-class customer base Improving quality of life Global operating for everyone and creating footprint a sustai
Slide 9: Proliferating Applications
Proliferating Applications 9 Innovative Solutions for Today and the Future Automotive Electrification & Environment Today Subsystems and components that enable Zero carbon and low electrification, optimize carbon solutions to For & the thermal management, and combat climate provide comfort and safet
Slide 10: Diversified Sales
10 Diversified Sales By Major Lines of Business
Slide 11: Diversified Customer Base
Diversified Customer Base 11 World-class Customers Across Diversified Industries 500 2000 Automotive Non-Auto Customers Customers
Slide 12: Zero Carbon: APG's Growth Opportunity
Zero Carbon 12 APG’s Growth Opportunity Global Light Vehicle Millions of Vehicles Production Outlook 120 100m NEV vehicles 100 75m vehicles 2020- 24% 2027 80 3% CAGR 6% 16% 30% 60 40 91% 60% 20 - CY 2020 CY 2027 ICE incl. mild hybrid Hybrid-full BEV Source: IHS
Slide 13: JE Automotive Products Well Positioned for Growth in NEV
JE Automotive Products 13 Well Positioned for Growth in New Energy Vehicle (NEV) ePump for JE Mild HEV PHEV cooling / lubrication Applications Suitable 48V system Generator for All Vehicle Types Shift- by-wire Thermal HEV BEV BLDC parts HVAC eModule Management Pump CFM Powder Metal gear Oil & Fluid
Slide 14: JE Automotive Products Engineered for Tomorrow
JE Automotive Products 14 Engineered for Tomorrow…Compatible with Today JE Mild HEV PHEV Applications for 48V system Generator Planetary E-compressor Hybrid & BEV BEV assemblies HEV BEV ESS PHEV HEV blower Mild HEV Charging port actuator BEV E-turbo ETC ITMS Fuel pump eVVL FD gerotor E-shift hybrid
Slide 15: Well Positioned to Capitalize on Move from ICE to Hybrid & BEV
Johnson Electric is Well Positioned 15 to Capitalize on the Market Move from ICE to Hybrid & BEV Source: JE Analysis – Indicative based on current available market intelligence & estimates
Slide 16: Recent Automotive Business Wins for New Energy Vehicles
Examples of 16 Recent Automotive Business Wins for New Energy Vehicles Our innovative products are winning Braking System business on major NEV platforms Brake booster, e-parking lock, e-parking brake, brake-by-wire and electric vacuum pump for safety and shorter braking distance, lower weight, and
Slide 17: JE Automotive Products for Autonomous Driving & Connectivity
JE Automotive Products 17 for Autonomous Driving & Connectivity Window lift and sunroof motor Seat adjuster motor Steering-by-wire motor LiDAR motor EMB motor Brake-by-wire Sensor Power door washing Brushless opening system motor DC motor Power lift tailgate / frunk motor Rotating seat motor Steerin
Slide 18: IPG Growth Supported by Megatrends
IPG Growth 18 Supported by Megatrends IPG product development and focus segments are aligned with megatrends that are delivering significant growth E-commerce Health Smart Home Electrification & & Iot Environment Latches for smart Air filtration systems Robotic floor care Electrification of garden l
Slide 19: Winning Market Traction
Winning 19 Market Traction Medium-term sales outlook 5-9% US$ 4.9bn CAGR US$ 3.2bn US$ 4.0bn New business wins 2-4% 3-4% Global Global and opportunities are GDP vehicle set to sustain growth growth growth FY20/21 Actual FY25/26 Forecast Note: Estimated total Group sales outlook based on customer ord
Slide 20: Global Operating Footprint
Global Operating Footprint 20 Operating in 22 Countries across 4 Continents
Slide 21: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 21 Johnson Electric’s Evolution Intensity targets Our environmental strategy and policies address: Climate change Our use of Bees in Johnson Electric Brazil factory grounds natural resources including water and raw materials Pollution prevention We are actively seeking to re
Slide 22: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 22 Johnson Electric’s Evolution One Johnson around the world, a great company and a great place to work! Our global team is bound We thrive on innovation We hire the right people together by our shared and excel in execution and put them in the right values. The talent and to make
Slide 23: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 23 Johnson Electric’s Evolution We seek to identify social needs and fulfil these in a way that benefits both Johnson Electric and the JETC students at local community. study and play in China and Mexico For example, the Johnson Electric Technical College founded in 2004, operatin
Slide 24: Key Financial Results Highlights
FY2021/22 Investor Briefing Interim Results Group Why invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Developments Information
Slide 25: Highlights
25 Highlights Group Profit Margin Gross profit Adjusted Underlying sales declined due to EBITA net profit significant supply chain 357 US$ million 1,674 US$ million disruptions impacting global manufacturers or 21.3% of sales 138 US$ million 96 US$ million and the decrease in (compared to up 26% com
Slide 26: Financial Highlights
Financial Highlights (& JOHNSON S ELECTRIC First half of First half of US$ million FY21/22 FY20/21 Sales 1,674.1 1,330.3 Gross profit 357.4 299.6 Gross margin 21.3% 22.5% EBITA' 134.0 137.0 EBITA adjusted ° 138.4 135.3 EBITA adjusted margin 8.3% 10.2% Profit attributable to shareholders 93.2 100.8 U
Slide 27: Financial Highlights
Financial Highlights [& JOHNSON @ ELECTRIC US$ million 30 Sep 2021 31 Mar 2021 Cash 486.5 539.5 Total debt 510.0 426.2 Net (debt) /cash ' (23.5) 113.3 Enterprise value a 2,013.1 2,368.6 Key Financial Ratios 830 Sep 2021 31 Mar 2021 Enterprise value to EBITDA adjusted s a5 43 Gross debt to EBITDA adj
Slide 28: Operating Results
FY2021/22 Investor Briefing Interim Results Group Why invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Developments Information
Slide 29: Group Sales Changes
Group Sales Changes 29 First Half of FY21/22 vs. First Half of FY20/21 Strong recovery in demand as most major economies rebounded from the COVID-19 global pandemic
Slide 30: Group Sales First Half Comparison
Group Sales 30 First Half Comparison Group sales, as reported The Group’s sales not only recovered but also increased to above the pre-COVID levels seen in the first half of FY20/21
Slide 31: APG Half-Yearly Sales Changes
APG 31 Half-Yearly Sales Changes APG’s sales performance on a regional level reflected both variations in the progression of the COVID-19 pandemic and the disruptive impact of several supply chain bottlenecks that have hit the global automotive sector
Slide 32: APG Sales Growth vs. Light Vehicle Production
APG Sales Growth vs. Light Vehicle Production 32 First half of FY21/22 Sales growth well above global automotive industry production growth * APG sales changes % ** Source: IHS
Slide 33: APG Sales Trend vs. Light Vehicle Production
33 APG Sales Trend vs. Light Vehicle Production 30% 21% 20% Growth / (decline) 15% 8% APG has 10% 2% consistently 7% (1%) (2%) 6% 0% outperformed 1% 5% 9% 6% (3%) light vehicle (10%) (8%) production over (10%) several (20%) FY17/18 FY18/19 FY19/20 FY20/21 First half of successive FY21/22 years APG's
Slide 34: IPG Half-Yearly Sales Changes
IPG 34 Half-Yearly Sales Changes IPG is exploiting the evolution of its markets – especially the imperatives to reduce carbon emissions, improve health and safety, and deliver the precise control required by the smart revolution
Slide 35: Underlying Net Profit
Underlying Net Profit 35 First Half of FY21/22 vs. First Half of FY20/21 Higher volumes increased profit however this was partly offset by higher logistics expenses, raw materials price inflation and increased labour costs. This was outweighed by the impact of the ending of COVID- 19 related one-off
Slide 36: Working Capital & CAPEX
36 Working Capital & CAPEX Trade and other receivables Trade and other payables US$ Days US$ Days million sales million purchases outstanding outstanding * DSOs calculated on trade receivables only ** DPOs calculated on trade payables only Inventories Capital expenditure US$ CAPEX as US$ 700 100 Day
Slide 37: Free Cash Flow
(& JOHNSON 37 Free Cash Flow @ ELECTRIC First half of| First half of USS million FY21/22 FY20/21 Change EBITDA 257.5 242.7 14.8 Other non-cash items (21.5) 14.5 (36.0) Working capital changes (117.4) (54.4) (63.0) Capital expenditure, net of subsidies & proceeds from disposal of fixed assets (151.8)
Slide 38: Free Cash Flow
Free Cash Flow [EJOHNSON 38 @ ELECTRIC First half of First half of US$ million FY21/22 FY20/21 Change Free cash (out) / inflow from operations (55.9) 68.2 (124.1) Acquisition and related costs (24.2) - (24.2) Dividends paid (35.5) - (35.5) Borrowings, net 83.5 15.9 67.6 Others (18.9) (13.0) (5.9) Cu
Slide 39: Dividends
39 Dividends * Scrip dividend offered as an alternative since the interim dividend of FY18/19 Final dividend to be determined
Slide 40: New Developments
FY2021/22 Investor Briefing Interim Results Group Why invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Developments Information
Slide 41: New Acquisition Zimmermann
New Acquisition 41 Zimmermann Purchased on 31 Leading machining Complimentary to Will accelerate our May 2021 for specialist in the Stackpole’s powder machining know- consideration of area of automotive metal business how to meet the EUR 24.1 million differential innovative (US$29.3 million)
Slide 42: Lean AI: AI driven quality assurance software
Lean AI 42 AI driven quality assurance software 7 Vast knowledge and Unique autonomous AI experience in Joint venture technology manufacturing formed on processes 18 October 2021
Slide 43: Joint Venture: Why invest in Lean AI?
Joint Venture 43 Why invest in Lean AI? Lean AI intends to revolutionize quality inspection and reduce manufacturing costs Machine vision inspection Today, deployment takes weeks Significantly reduce deployment defect detection rates or even months time increase to over 90% Requires thousands
Slide 44: Outlook
FY2021/22 Investor Briefing Interim Results Group Why invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Developments Information
Slide 45: Outlook
45 Outlook Mixed picture of the first half of FY21/22 looks set to continue in the second half End-market demand remains buoyant and the Group continues to win new business programs and market share However, no clear sign that global supply chain disruptions and inflationary forces are behind
Slide 46: Supplemental Information
FY2021/22 Investor Briefing Interim Results Group Why invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Developments Information
Slide 47: Profitability Review
Profitability Review 47 First Half of FY21/22 vs. First Half of FY20/21
Slide 48: Profitability Review
Profitability Review 48 First Half of FY21/22 vs. First Half of FY20/21
Slide 49: From Reported to Underlying Net Profit
49 From Reported to Underlying Net Profit
Slide 50: Average Exchange Rate
Average Exchange Rate 50 First Half of FY21/22 vs. First Half of FY20/21
Slide 51: Disclaimer
51 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”, “inte
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