Jvckenwood Corporation · TSE:6632
Jvckenwood — Q1 FY2017 Earnings Presentation
29 slides from Jvckenwood's earnings presentation, Aug 2, 2016
Slide 1: Results and Forecast Briefing, First Quarter FYE March 2017
Translation for Reference Only JVCKENWOOD Results and Forecast Briefing First Quarter of Fiscal Year Ending March 2017 August 2, 2016 JVCKENWOOD Corporation Copyright © 2016 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Abbreviations
Abbreviations AM Automotive (Sector) Consumer (Business) OEM (Business) ASK: ASK Industries S.p.A. PS Public Service (Sector) Communications Systems (Business) Professional Systems (Business) Healthcare (Business) EFJT: EF Johnson Technologies, Inc. Zetron: Zetron, Inc. MS Media Service (Sector) Med
Slide 3: 1. Overview of Financial Results for 1Q of FYE3/'17; 2. Topics
1. Overview of Financial Results for 1Q of FYE3/ʼ17 2. Topics
Slide 4: 1. Overview of Financial Results for 1Q of FYE3/'17
1. Overview of Financial Results for 1Q of FYE3/ʼ17 2. Topics
Slide 5: Financial Results for 1Q of FYE3/'17 - Summary
Financial Results for 1Q of FYE3/ʼ17 - Summary （Billion yen） 1Q FYE3/ʼ17 1Q FYE3/ʼ16 YoY Net sales 65.7 67.3 (1.6) Operating income (1.4) (1.1) (0.3) Ordinary income (1.5) (1.6) +0.1 Net income attributable to owners of parent (2.8) (2.3) (0.5) Profit-and-loss USD JPY 108 JPY 121 exchange rate EUR J
Slide 6: Financial Results for 1Q of FYE3/'17 - Summary
Financial Results for 1Q of FYE3/ʼ17 - Summary Net sales Declined due to the effects of exchange rate fluctuations and lower sales in the PS Sector. Increased in real terms, after excluding the effects of foreign exchange. Operating income Operating loss increased due to factors that were
Slide 7: Consolidated Net Sales (By Sector)
Financial Results for 1Q of FYE3/ʼ17 Consolidated Net Sales (By Sector) Net sales (YoY change) AM: Sales increased （Billion yen） 80 (Factor) Sales increase in the OEM AM PS MS Business due to higher Others sales of dealer-installed 60 +0.1 +0.4 option products. (1.8) (0.4) PS: Sales decreased (F
Slide 8: Consolidated Net Sales (By Sector, excluding foreign exchange)
Financial Results for 1Q of FYE3/ʼ17 Consolidated Net Sales (By Sector, after Excluding the Effects of Foreign Exchange) Net sales (YoY change) 80 （Billion yen） Net sales increased in Effects of foreign real terms, after exchange AM PS MS Others excluding the effects of foreign exchange 60 (4.9) (
Slide 9: Consolidated Net Sales (By Region)
Financial Results for 1Q of FYE3/ʼ17 Consolidated Net Sales (By Region) Japan: Sales increased Net sales (YoY change) (Factor) 80 （Billion yen） Sales increase in the OEM Americas Asia/ Business due to higher sales Japan China Europe of dealer-installed option Others products. +3.9 (0.7) 60 (0.1) (
Slide 10: Consolidated Net Sales (By Region, excluding foreign exchange)
Financial Results for 1Q of FYE3/ʼ17 Consolidated Net Sales (By Region, after Excluding the Effects of Foreign Exchange) Net sales (YoY change) Net sales increased in （Billion yen） 80 Effects of Europe in real terms, foreign Americas Asia/ China after excluding the exchange Japan effects of foreig
Slide 11: Consolidated Operating Income (By Sector)
Financial Results for 1Q of FYE3/ʼ17 Consolidated Operating Income (By Sector) AM: Income increased Operating income (YoY change) (Factor) （Billion yen） Strong sales of car navigation 0.5 systems and dashcams in Japan and the effects of the rollouts of new product overseas. 0.0 PS: Income decrea
Slide 12: Consolidated Operating Income (By Factor)
Financial Results for 1Q of FYE3/ʼ17 Consolidated Operating Income (By Factor) Operating income (YoY change) （Billion yen） Factors such as foreign 0.5 1 exchange fluctuations, increase in retirement benefit 0.0 0.5 expenses, and enterprise tax Foreign realized, within our period- exchange start ex
Slide 13: Consolidated Operating Income (By Sector, excluding Foreign Exchange)
Financial Results for 1Q of FYE3/ʼ17 Consolidated Operating Income (By Sector, after Excluding the Foreign Exchange, etc.) Operating income (YoY change) 0.5 （Billion yen） Income/loss improved in all sectors, after excluding the effects of 0.0 factors for income Exchange (1.1) (1.4) decreases that
Slide 14: Consolidated Ordinary Income and Net Income Attributable to Owners of Parent
Financial Results for 1Q of FYE3/ʼ17 Consolidated Ordinary Income and Net Income for the Quarter Attributable to Owners of Parent （Billion yen） 1Q FYE3/ʼ17 1Q FYE3/ʼ16 YoY Operating income (1.42) (1.10) (0.32) Non-operating income and expenditure (0.11) (0.54) +0.43 Ordinary income (1.52) (1.64) +0.
Slide 15: Balance Sheet Summary
Financial Results for 1Q of FYE3/ʼ17 Balance Sheet Summary （Billion yen） End of 1Q End of YoY FYE3/ʼ17 FYE3/ʼ16 Total assets 238.3 255.9 (17.6) Interest-bearing debts 67.8 69.2 (1.4) Net debt 32.2 26.4 +5.7 Net debt/equity ratio (times) 0.77 0.51 +0.26 Net assets 46.7 56.8 (10.1) Shareholdersʼ equit
Slide 16: Cash Flow Summary
Financial Results for 1Q of FYE3/ʼ17 Cash Flow Summary Cash flow from operating activities decreased during the period, due to an increase in working capital as sales in the AM Consumer Business and MS Entertainment Business concentrated in June. （Billion yen） 1Q 1Q FYE 3/ʼ17 FYE 3/ʼ16 YoY Cash fl
Slide 17: (Reference) Information by Sector
(Reference) Information by Sector
Slide 18: Automotive Sector
Financial Results for 1Q of FYE3/ʼ17 Automotive Sector Net sales: Sales increased Net sales / Operating income (YoY Change) In the Consumer Business, sales （Billion yen） were strong in Japan but 40 Operating income 8 decreased overseas due to factors such as exchange rate fluctuations 32.9 33.0
Slide 19: Public Service Sector
Financial Results for 1Q of FYE3/ʼ17 Public Service Sector Net sales / Operating income (YoY Change) Net sales: Sales decreased In the Communications Systems （Billion yen） Business, sales decreased as sales 40 8 Operating income to the U.S. continued to decrease. In the Professional Systems Bu
Slide 20: Media Service Sector
Financial Results for 1Q of FYE3/ʼ17 Media Service Sector Net sales: Sales increased Net sales / Operating income (YoY Change) In the Media Business, sales （Billion yen） decreased due mainly to lower 40 Operating income 8 sales of consumer video cameras in Japan and professional video cameras 30
Slide 21: Full-year Earnings Forecast for FYE3/'17
Full-year Earnings Forecast for FYE3/ʼ17 No revision from the initial forecast for the fiscal year （Billion yen） 1Q FYE3/ʼ17 1Q FYE3/ʼ16 YoY Net sales 295.0 292.2 +2.8 Operating income 4.8 4.2 +6.0 Ordinary income 3.3 1.0 +2.3 Net income attributable to owners of parent 0.3 3.2 (2.9) Profit-and-lo
Slide 22: 2. Topics
1. Overview of Financial Results for 1Q of FYE3/ʼ17 2. Topics
Slide 23: Sales Ranking of Dashcams
Sales Ranking of Dashcams • All four models of JVCKENWOODʼs dashcams No. 1 No. 2 ranked in top 10 by sales on a popular price comparison website. No. 3 No. 8 • Sales ranking based on sales data from July 19 to July 25, 2016 (Source: Kakaku.com) 23
Slide 24: Automotive Sector – Dashcam Market
Automotive Sector – Dashcam Market The domestic market share of dashcams is on the rise. Looking to expand business by expanding deployment of dashcams in the dealer-installed option market. Domestic market share of driving recorders (Thousand units) 25% 2,500 JVCKENWOODʼs share Market size 20%
Slide 25: Automotive Sector – OEM Dealer-Installed Option Navigation Systems
Automotive Sector – OEM Dealer-Installed Option Navigation Systems Continued to receive orders from major manufacturers for FYE3/ʼ18 and beyond. Looking to expand business further both domestically and overseas. Dealer-installed navigation device products: Results and forecast (Thousand units) 1
Slide 26: Public Service Sector – Communications Systems Business
Public Service Sector – Communications Systems Business EFJT and Zetron have continued on a path to recovery. Backlog of orders for communication systems by year (USD million) (Combined total of JVCKENWOOD, EFJT, and Zetron) 100 Arrival of 80 new CEO at EFJT 60 40 20 0 3⽉ Mar. 6⽉ Jun. 9⽉ Sep. 12⽉
Slide 27: Public Service Sector – Communications Systems Business
Public Service Sector – Communications Systems Business Won a large contract from Taipei City Police Department to deliver a P25 system solution (including about 7,000 units of radios) through collaboration with EFJT. -> Aim to expand the P25 system business in other areas in Taiwan. About 2,000
Slide 28: Media Service Sector – AV Accessories
Media Service Sector – AV Accessories Working on the development of a new genre of products by using a crowd-funding platform. Product development and solution proposal from the viewpoint of customers enabled by understanding the needs of customers directly. Utilized in acceptability survey an
Slide 29: Forward-looking statements notice
The expressions contained in this presentation referring to the Company's future plans, intentions and expectations are categorized as future forecast statements. Such statements reflect management expectations of future events, and accordingly, are inherently susceptible to risk, uncertainty and ot