Kanematsu Corporation · TSE:8020

Kanematsu — FY2015 Earnings Presentation

34 slides from Kanematsu's earnings presentation, May 15, 2015

  1. Slide 1: Overview of results for FY2015 (May 15, 2015)

    Note: The forward-looking statements in this material, including plans, forecasts, and strategies of the Group, reflect judgments that the Company made based on information available at the time the material was prepared and include risks and uncertainties. Because of changes in the business environ

  2. Slide 2: Overview of results for FY2015

    Overview of results for FY2015 © KANEMATSU CORPORATION All Rights Reserved 2

  3. Slide 3: 1-1. FY2015 Highlight (P/L)

    1-1. FY2015 Highlight (P/L) ✔ Ordinary income recorded an all-time high of 22.9 billion yen. ✔ Net income increased from the plan, despite the impact of the tax reform. FY2014 FY2015 FY2015 Change from Change from (Unit: Billion yen) (result) (plan) (result) FY2014 plan Net Sales 1,114.5 1,150.0 1,1

  4. Slide 4: 1-2. FY2015 Highlight (Segment margin)

    1-2. FY2015 Highlight (Segment margin) ✔The Electronics & Devices and Motor Vehicles & Aerospace segments generally performed well. Segment margin Electronics & Devices Billion （Operating income） yen The electronic components and materials business and the semiconductor parts business remained brisk

  5. Slide 5: 1-3. FY2015 Highlight (B/S)

    1-3. FY2015 Highlight (B/S) ✔Shareholdersʼ equity increased steadily, attributable to accumulated earnings and the trend of a weaker yen. ✔The equity ratio improved to approximately 20%. ✔The net debt-equity ratio (“net DER”) remained at below 1.0 times. (Unit: Billion yen) FY2014 FY2015 (Unit: Bill

  6. Slide 6: 1-4. FY2015 Highlight (C/F)

    1-4. FY2015 Highlight (Ｃ/F) ✔New investments were implemented using funds obtained from cash flows from operating activities. Billion yen ■Operating CF ■Investing CF ■Amount of decrease in net interest-bearing debt 60.0 40.0 VISION-130 20.0 22.4 10.1 0.0 -8.9 - 0.4 -18.4 -20.0 -1.1 -40.0 -60.0 FY200

  7. Slide 7: 2-1. FY2016 forecast (P/L)

    2-1. FY2016 forecast（P/L） ✔ Operating income is expected to reach another record high for the second consecutive year. ✔Net income (attributable to the Companyʼs shareholders) is expected to increase 1 billion yen. FY2014 FY2015 FY2016 Comparison with FY2015 (Unit: Billion yen) (result) (result) (fo

  8. Slide 8: 2-2. FY2016 forecast (Segments)

    2-2. FY2016 forecast（Segments） ✔In Electronics & Devices, the ICT business is projected to continue to grow. Kanematsu-NNK Corporation is also expected to contribute to consolidated earnings. ✔ In Foods & Grain, profits at the operating income level are expected to increase due to the elimination of

  9. Slide 9: 3-1. VISION-130 - another challenge for further growth

    3-1.VISION-130 -Kanematsu takes on another challenge for further growth- The Group continues to diligently pursue business creation. Management Sustainability in financial objective soundness Expansion in revenue base Aspiration Consolidated ordinary income 30 billion yen Consolidated net income 15

  10. Slide 10: 3-1. VISION-130 - Medium-Term Business Plan

    3-1. VISION-130 -Kanematsu takes on another challenge for further growth- S-Project Medium-Term Business Plan VISION-130 Billion yen Ordinaly income Net income 30.0 30.0 25.0 22.9 23.0 20.0 20.2 15.0 16.7 15.0 10.0 11.8 12.5 11.5 9.6 5.0 0.0 ・・・・・ FY2013 FY2014 FY2015 FY2016 FY2019 FY2020 The last y

  11. Slide 11: 3-2. Key strategic areas of strength

    3-2. Key strategic areas of strength ✔The Group pursues the horizontal and vertical expansion of the businesses by focusing on the areas in which it excels. Major４Division Key strategic 6 business area Expand the systems business and improve Electronics & ICT solutions the efficiency of the service

  12. Slide 12: 4-1. Progress in VISION-130 (ICT solutions)

    4-1. Progress in the first fiscal year of VISION-130（ICT solutions） ✔Group reorganization by Kanematsu Electronics Ltd. (making Nippon Office Systems Ltd. a wholly owned subsidiary) KELʼs consolidated Business results of KEL group Further promote the subsidiaries exchange of human resources System b

  13. Slide 13: 4-2. Progress in VISION-130 (Mobile)

    4-2. Progress in the first fiscal year of VISION-13 (Mobile) ✔Kanematsu Communications Ltd. expanded its business foundation. Number of stores Number of employees 120 1,700 1,660 5 Number of directly 1,555 managed stores by district 115 1,447 117 1,500 113 10 110 112 1,300 7 5 50 105 1,100 16 17 3 4

  14. Slide 14: 4-3. Progress in VISION-130 (Food market in Asia)

    4-3. Progress in the first fiscal year of VISION-130 (Food market in Asia) ✔Full scale operation of the food-processing joint venture (“Kanemory”) in Indonesia. ✔The company made investments in a fruit jelly manufacturing company in Indonesia. Full-scale operation of the Making investments in a frui

  15. Slide 15: 4-4. Progress in VISION-130 (North American shale market)

    4-4. Progress in the first fiscal year of VISION-130 (North American shale market) ✔Land was purchased for building the second plant for processing oilfield tubing (Benoit) in North America. ✔There were drastic changes in the environment due to the drop in crude oil prices. Construction was temporar

  16. Slide 16: 4-5. Progress in VISION-130 (Global motorization)

    4-5. Progress in the first fiscal year of VISION-130 (Global motorization） ✔New bases were established in Mexico and Detroit to expand offshore operations. ✔The lineup of aircraft rotable parts offered for commercial aircraft (KGAR) was enhanced. Business bases in North & Middle America Aircraft Rot

  17. Slide 17: 3-2'. Key strategic areas of strength

    3-2ʼ. Key strategic areas of strength ✔The Group pursues the horizontal and vertical expansion of the businesses by focusing on the areas in which it excels. Major４Division Key strategic 6 business area＋innovation Electronics & ICT solution Mobile Devices Food market in Asia North American shale mar

  18. Slide 18: 4-6. Innovation (1) - Technical support

    4-6. Progress in the first fiscal year of VISION-130 (New departure (1) – Technical support) Technical support ✔Establishment of Kanematsu Advanced Materials Corporation ✔Capital and business alliance with Nippon Manufacturing Service Corporation Sale and processing of materials and Creation of new

  19. Slide 19: 4-7. Innovation (2) - Camera business

    4-7. Progress in the first fiscal year of VISION-130 （Innovation ②－Camera business） Camera business ✔Kanematsu-NNK Corp. became consolidated subsidiary company. ✔The micro lens unit business (KANTATSU Co., Ltd.) expanded. Changes in segments profits Design and manufacture of micro lens units Billion

  20. Slide 20: 4-8. Innovation (3) - TPP/Pets

    4-8. Progress in the first fiscal year of VISION-130 (Innovation ③－TPP/Pets) Response to the TPP Pets related ✔Acquisition of a pet food producer ✔Response to the TPP, ✔Additional acquisition of shares of a particularly in the foods area wholesale company ＴＰＰ Pet foods production company ●Change in

  21. Slide 21: 4-9. Corporate bonds shelf registration

    4-9. Progress in the first fiscal year of VISION-130 (Corporate bonds shelf registration） ✔Establishment of a 30 billion yen limit for the issuance of straight corporate bonds Kanematsu Consolidated balance sheet FY2015 Plans to improve financial stability through diversification of funding vehicles

  22. Slide 22: 4-10. Governance

    4-10. Progress in the first fiscal year of VISION-130 （Governance） Formulation of investment Governance system standards ✔Expansion of the executive officer system and reduction of the ✔Newly establish companywide investment standards number of Directors ✔At the same time, establish a system of foll

  23. Slide 23: Appendix

    Appendix © KANEMATSU CORPORATION All Rights Reserved 23

  24. Slide 24: Appendix 1-1. Consolidated Ordinary income (from FY1978)

    Appendix 1-1. Consolidated Ordinary income (from FY1978） Billion yen VISION-130 30.0 Bankruptcy of Lehman 25.0 Brothers The best 22.9 23.0 gain 21.5 20.0 The Gulf War 15.0 10.0 Structural Reporting on a reform plan consolidated basis started. 5.0 0.0 FY1991 FY1978 FY1979 FY1980 FY1981 FY1982 FY1983

  25. Slide 25: Appendix 1-2. Shareholder's equity & equity ratio

    Appendix1-2. Shareholderʼs equity & equity ratio Billion yen % Shareholder's equity （left axis） Equity ratio（right axis） 90.0 90.1 80.0 20.0 71.7 19.6 70.0 16.7 60.0 15.0 13.7 50.0 54.5 9.8 40.0 45.6 10.0 8.5 7.3 39.0 30.0 9.1 33.1 33.0 6.0 28.9 20.0 26.0 24.9 5.0 5.9 4.7 10.0 0.0 0.0 FY2006 FY2007

  26. Slide 26: Appendix 1-3. Interest-bearing debt and Net debt-equity ratio

    Appendix1-3. Interest-bearing debt and Net debt-equity ratio Billion yen times 300.0 298.4 10.0 Gross interest-bearing debt （left axis） 9.5 Net interest-bearing debt（left axis） 270.7 250.0 8.0 246.3 Net debt-equity ratio（right axis） 204.9 223.7 200.0 213.6 193.1 6.0 6.2 5.4 173.6 150.0 160.8 148.9 1

  27. Slide 27: Appendix 2. Dividends

    Appendix２．Dividends ✔The Company plans to pay an annual cash dividend of 5.0 yen per share, an increase of 1.0 yen per share, for FY2016. Yen Yen year-end dividend（left axis） interim dividend（left axis） 29.7 6.0 30.0 EPS（right axis） 28.1 5 yen/year 5.0 27.3 25.0 21.9 22.8 2.5 4 yen/year 4.0 20.0 1.5

  28. Slide 28: Appendix 3. Outline of Kanematsu Group

    Appendix３．Outline of Kanematsu Group Segment Main business Main products Major subsidiaries Electronics & Semiconductor Parts & Equipment Semiconductor / electronics parts, Electronic modules / materials, Devices Semiconductor Industrial electronics & Printer equipment, Electronic modules Kanematsu

  29. Slide 29: Appendix 4. Subsidiaries and Affiliates, and their Employees

    Appendix４．Subsidiaries and Affiliates, and their Employees Net Sales of Major Consolidated Subsidiaries (Billion yen) Business Ownership FY2014 FY2015 Change ratio Kanematsu Electronics Ltd ICT solution 58.28% 63.9 61.9 - 2.0 Kanematsu Communications Ltd. Mobile 100% 136.9 134.0 - 2.9 Kanematsu-NNK

  30. Slide 30: Appendix 5. Subsidiaries

    Appendix５．Subsidiaries Number of Profitable and Non-Profitable Consolidated Subsidiaries and Affiliates FY2014 FY2015 （Companies） Subsidiaries Affiliates Subsidiaries Affiliates Year on Total Total year Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Number of profitable Comp

  31. Slide 31: Appendix 6-1. Segments (Electronics & Devices)

    Appendix6-1. Segments（Electronics & Devices） FY2014 FY2015 FY2016 Comparison with FY2015 (Unit: Billion yen) (result) (result) (forecast) Change Change(%) Net sales 277.3 276.5 300.0 ＋ 23.5 ＋ 8.5% Gross trading 42.3 44.8 46.0 ＋ 1.2 ＋ 2.7% profit Operating income 7.8 9.9 10.5 ＋ 0.6 ＋ 6.0% Billion yen

  32. Slide 32: Appendix 6-2. Segments (Foods & Grain)

    Appendix６-２． Segments（Foods & Grain） FY2014 FY2015 FY2016 Comparison with FY2015 (unit: Billion yen) (result) (result) (forecast) Change Change(%) Net sales 309.0 307.7 340.0 ＋ 32.3 ＋ 10.5% Gross trading 11.7 12.1 13.5 ＋ 1.4 ＋ 11.4% profit Operating income 2.1 1.9 3.5 ＋ 1.6 ＋ 81.1% Billion yen Segme

  33. Slide 33: Appendix 6-3. Segments (Steel, Materials & Plant)

    Appendix６-３. Segments (Steel, Materials & Plant) (Unit: Billion yen) FY2014 FY2015 FY2016 Comparison with FY2015 (result) (result) (forecast) Change Change(%) Net sales 468.8 467.8 480.0 ＋ 12.2 ＋ 2.6% Gross trading 24.8 25.3 25.0 - 0.3 - 1.1% profit Operating income 8.1 7.3 7.0 - 0.3 - 3.9% Billion

  34. Slide 34: Appendix 6-4. Segments (Motor Vehicles & Aerospace)

    Appendix6-4. Segments (Motor Vehicles & Aerospace) FY2014 FY2015 FY2016 Comparison with FY2015 (Unit: Billion yen) (result) (result) (forecast) Change Change (%) Net sales 54.5 59.7 65.0 ＋ 5.3 ＋ 8.9% Gross trading 6.2 7.8 8.0 ＋ 0.2 ＋ 3.1% profit Operating income 1.5 2.8 3.0 ＋ 0.2 ＋ 8.9% Billion yen

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