JTEKT Corporation · TSE:6473

JTEKT — H1 FY2010 Earnings Presentation

21 slides from JTEKT's earnings presentation, Nov 8, 2010

  1. Slide 1: Presentation of First-Half Results for Fiscal Year Ending March 2011

    1 Presentation of First-Half Results for Fiscal Year Ending March 2011 November 8, 2010 JTEKT Corporation JTEKT Corporation

  2. Slide 2: First-Half Results, Forecasts, Global Business Strategy

    2 1. First-Half Results for Fiscal 2010 2. Forecasts for Fiscal 2010 3. Global Business Strategy JTEKT Corporation

  3. Slide 3: 1-1) Financial Data (i)

    1-1) Financial Data (i) 3 (Billion yen) First Half First Half FY 2009 FY 2010 YoY Change FY 2009 Net Sales 339.8 467.0 +37.4% 769.6 Operating Income -14.2 16.8 ― 0.4 Ordinary Income -14.5 16.5 ― -0.2 Net Income -16.5 8.9 ― -19.4 JTEKT Corporation

  4. Slide 4: 1-2) Financial Data (ii)

    1-2) Financial Data (ii) 4 (Billion yen) YoY Change *A change in First Half First Half parentheses represents FY 2009 a change from the FY 2009 FY 2010 preceding fiscal year. Results Inventories 119.4 116.4 (-6.4%) 124.4 Interest- Bearing Debt 255.5 207.8 (-12.4%) 237.3 Capital Expenditures 14.8 10.

  5. Slide 5: 1-3) Net Sales by Product

    1-3) Net Sales by Product 5 Steering Systems Bearings (Billion yen) 254.2 153.4 195.6 152.4 156.8 96.4 FY 2008 FY 2009 FY 2010 FY 2008 FY 2009 FY 2010 Driveline Components Machine Tools & Others 72.0 101.8 63.2 55.8 44.1 42.5 FY 2008 FY 2009 FY 2010 FY 2008 FY 2009 FY 2010 JTEKT Corporation

  6. Slide 6: 1-4) Analysis of Operating Income Changes

    1-4) Analysis of Operating Income Changes 6 (Billion yen) +9.8 16.8 +27.8 -14.2 Up 31.0 billion yen -3.3 -3.3 Q2 of Q2 of FY 2009 FY 2010 Foreign exchange Cost cutting and following sales Fall in selling other factors Income rise price level growth JTEKT Corporation

  7. Slide 7: 1-5) Dividends

    1-5) Dividends 7 (Yen per Share) Interim Dividend: 7 yen, Annual Dividend (expected): 14 yen Dividend Trends Annual Dividend (Dividend Payout Ratio) FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 JTEKT Corporation

  8. Slide 8: First-Half Results, Forecasts, Global Business Strategy

    8 1. First-Half Results for Fiscal 2010 2. Forecasts for Fiscal 2010 3. Global Business Strategy JTEKT Corporation

  9. Slide 9: 2-1) Financial Data

    2-1) Financial Data 9 Presumed Exchange Rates for Second Half (Billion yen) USD 1= JPY 80.00 EUR 1= JPY 110.00 FY 2009 FY 2010 YoY Change Net Sales 769.6 920.0 +19.5% Operating Income 0.4 35.0 ― Ordinary Income - 0.2 34.0 ― Net Income - 19.4 18.0 ― Capital Expenditures 25.2 28.0 +10.9% Depreciation

  10. Slide 10: 2-2) Net Sales by Product

    2-2) Net Sales by Product 10 (Billion yen) First Half Second Half Full Year Steering Systems 195.6 177.9 373.5 Bearings 152.4 154.1 306.5 Driveline Components 63.2 53.3 116.5 Machine Tools 21.0 30.5 51.5 Others 34.8 37.2 72.0 Total 467.0 453.0 920.0 JTEKT Corporation

  11. Slide 11: 2-3) Analysis of Operating Income Changes

    2-3) Analysis of Operating Income Changes 11 Presumed Exchange Rates for Second Half (Billion yen) USD 1= EUR 1= JPY 80.00 JPY 110.00 +21.6 35.0 Up 34.6 +32.0 billion yen 0.4 -9.0 -7.0 -3.0 FY 2009 2009年度 2010年度 FY 2010 Foreign exchange level Fall in selling price Fluctuations of growth following sa

  12. Slide 12: First-Half Results, Forecasts, Global Business Strategy

    12 1. First-Half Results for Fiscal 2010 2. Forecasts for Fiscal 2010 3. Global Business Strategy JTEKT Corporation

  13. Slide 13: 3-1) External Environment and Business Strategies

    13 3-1) External Environment and Business Strategies External Environment Global Business Strategies Solidify our foundations in the industrial ◇ Continued strength of the yen machinery market. (1) Expand the large bearing business. (2) Strengthen the machine tool business. ◇ Rise of China and other

  14. Slide 14: 3-2) Expanding Large Bearing Business

    3-2) Expanding Large Bearing Business: 14 Solidifying our business foundation in the industrial machinery market Sales Targets Improve the sales and technical structures ＜産業機械市場での軸受販売目標＞ <Bearing Sales Targets in Industrial Machinery Market> Reforms to create a business structure with earnings (Bill

  15. Slide 15: 3-3) Strengthening Machine Tool Business

    3-3) Strengthening Machine Tool Business: 15 Solidifying Business Foundation in Industrial Machinery Market Transition of Sales Composition Enhance Basic Technologies to Boost Product Appeal Concept: Going versatile for lines for volume 10% production of different types of products Lowering the cost

  16. Slide 16: 3-4) Actions for the Needle Bearing Business

    3-4) Actions for the Needle Bearing Business 16 Sales Targets Improve the Sales Structure (Billion Yen) （億円） <Enhance the global sales network.> 880 00 After Acquisition  Increase overseas sales staff to four folds.  Bolster sales force in emerging countries. 660 00 - Increase sales personnel in C

  17. Slide 17: 3-5) Bolstering the Steering Systems Business

    3-5) Bolstering the steering systems business: 17 Solidifying business foundations in the European market Increasing earnings capabilities in the European market Shift to internal production to increase extra value  Internal production and local Internal production of core components production of

  18. Slide 18: 3-6) Emerging Markets: (1) China Business

    3-6) Solidifying Business Foundation in Emerging Markets: 18 (1) China Business Sales Targets Improve the Sales Structure Target 上積み目標 after （億 <Increase sales bases.> (Billion Yen) Upward Revision 1,200 円）  Set up sales bases in Zhengzhou, Wuhan, Changchun 120 and elsewhere in addition to the five

  19. Slide 19: 3-6) Emerging Markets: (2) India Business

    3-6) Solidifying Business Foundation in Emerging Markets: 19 (2) India Business Sales Targets Improve the Sales Structure (for bearings and machine tools) 5 0 0 (Billion Yen) <Add and increase sales bases in the north and 50 south of the country.> 400 40  North (Gurgaon) 300 - Set up the Gurgaon br

  20. Slide 20: 3-6) Emerging Markets: (3) South America Business

    3-6) Solidifying Business Foundation in Emerging Markets: 20 (3) South America Business Improve the Sales Structure Sales Targets (for bearings and machine tools) 4 0 0 (Billion Yen) <Brazil> 40  Strengthen sales activities by expanding KBR’s warehouse 330 00 for bearings with the use of the former

  21. Slide 21: 3-6) Emerging Markets: (4) ASEAN Business

    3-6) Solidifying Business Foundation in Emerging Markets: 21 (4) ASEAN Business Sales Targets Improve the Sales Structure 800 (Billion Yen) <Thailand> 80 600  Create synergy between businesses. 60  Integrate sales activities for steering systems, bearings and machine tools to implement matrix acti

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