Jvckenwood Corporation · TSE:6632
Jvckenwood — Q3 FY2018 Earnings Presentation
27 slides from Jvckenwood's earnings presentation, Feb 1, 2018
Slide 1: JVCKENWOOD Results and Forecast Briefing, 3Q FYE March 2018
Translation for Reference Only JVCKENWOOD Results and Forecast Briefing 3Q of Fiscal Year Ending March 2018 February 1, 2018 JVCKENWOOD Corporation Copyright © 2018 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Business Domains
Business Domains Media Service Sector (MS) Others (1.9%) Media Business Automotive Sector (AM) • Solutions/Products video cameras, headphones, Aftermarket Business projectors, home audio, etc. • Car navigation systems • Car audio systems Entertainment Business Content/contract production 19.6%
Slide 3: Agenda: Financial Results, Forecast, Topics
1. Overview of Financial Results for 3Q of FYE3/’18 2. Full-year Earnings Forecast for FYE3/’18 3. Topics
Slide 4: 1. Overview of Financial Results for 3Q of FYE3/'18
1. Overview of Financial Results for 3Q of FYE3/’18 2. Full-year Earnings Forecast for FYE3/’18 3. Topics
Slide 5: Financial Results for 3Q (1-3Q) of FYE3/'18 - Summary
Financial Results for 3Q (1–3Q) of FYE3/’18 - Summary Net sales increased due to a significant sales increase in the OEM Business in the AM Sector. Operating income increased due to a significant profit increase in the OEM Business in the AM Sector. Ordinary income turned around from a loss to
Slide 6: Trends in Quarterly Results
Financial Results for 3Q of FYE3/’17 - Trends in Quarterly Results Net sales Operating income (Billion yen) FYE3/’16 FYE3/’17 FYE3/’18 (Billion yen) 1,000 100.0 100 10.0 83.5 77.7 79.4 80.0 800 72.1 75.2 70.7 69.3 73.2 75.2 8.0 80 67.3 65.7 60.0 600 6.0 60 4.1 4.3 40.0 400 4.0 40 2.1 20.0 200 1.2 1.
Slide 7: Results by Sector
Financial Results for 3Q (1–3Q) of FYE3/’18 - Results by Sector （Billion yen） 1-3Q 1-3Q YoY change YoY change Factor FYE3/'17 FYE3/'18 (amount) (percentage) * Sales in the AM Sector as a whole increased due to a substantial Sales 105.5 125.2 + 19.8 +18.8% increase in sales in the OEM Business. * Ret
Slide 8: Consolidated Net Sales (by Sector)
Financial Results for 3Q (1–3Q) of FYE3/’18 - Consolidated Net Sales (by Sector) Consolidated Net Sales （Billion yen） Consolidated Net Sales （Billion yen） (by sector, after excluding the effects of (by sector) business sell-offs and foreign exchange) 240.0 2,400 2,400 240.0 -6.3 ＋19.8 -2.1 -5.6 PS -
Slide 9: Quarterly Results (AM Sector)
Financial Results for 3Q of FYE3/’18 - Quarterly Results (AM Sector) Operating Net Sales Income （Billion yen) FYE3/’16 FYE3/’17 FYE3/’18 （Billion yen) 50.0 500 505.0 Aftermarket OEM 400 40.0 404.0 30.0 300 2.6 303.0 1.8 20.0 200 1.3 1.3 1.5 202.0 10.0 100 0.7 101.0 0.2 0 0 -0.2 Including the effects
Slide 10: Quarterly Results (PS Sector)
Financial Results for 3Q of FYE3/’18 - Quarterly Results (PS Sector) Operating Net Sales Income （Billion yen) FYE3/’16 FYE3/’17 FYE3/’18 （Billion yen) 50.0 500 505.0 Healthcare Professional Systems Effects of business sell-offs in 40.0 400 Communication Systems the Professional Systems Business (1Q-
Slide 11: Quarterly Results (MS Sector)
Financial Results for 3Q of FYE3/’18 - Quarterly Results (MS Sector) Operating Net Sales Income （Billion yen) FYE3/’16 FYE3/’17 FYE3/’18 （Billion yen) 500 50.0 505.0 Entertainment Media Contribution of 400 40.0 major works released in the Entertainment Business 404.0 300 30.0 303.0 2.1 200 20.0 202.
Slide 12: Consolidated Net Sales (by Region)
Financial Results for 3Q (1-3Q) of FYE3/’18 - Consolidated Net Sales (by Region) Consolidated Net Sales （Billion yen） Consolidated Net Sales （Billion yen） (by region, after excluding the effects of (by region) business sell-offs and foreign exchange) 240.0 2,400 2,400 240.0 -5.6 ＋5.1 -5.0 +4.1 -2.7
Slide 13: Consolidated Net Sales (by Region), Quarterly
Financial Results for 3Q of FYE3/’18 - Consolidated Net Sales (by Region) FYE3/’16 FYE3/’17 FYE3/’18 100.0 1,000 Others Asia/China Europe 1.8 80.0 800 Americas 1.2 1.4 1.2 10.4 Japan 1.2 1.2 1.2 1.2 12.1 10.0 1.2 1.0 12.1 9.3 10.3 11.5 0.9 9.9 13.9 9.3 60.0 600 11.8 13.8 9.5 13.1 14.0 15.7 14.5 16.7
Slide 14: Consolidated Operating Income (by Sector)
Financial Results for 3Q (1-3Q) of FYE3/’18 - Consolidated Operating Income (by Sector) Consolidated Operating Income Consolidated Operating Income （Billion） (by sector) (by sector, after excluding the effects of （Billion） business sell-offs) 80 8.0 60 6.0 Effects of less major works released in the
Slide 15: Consolidated Ordinary Income and Net Income
Financial Results for 3Q (1-3Q) of FYE3/’18 - Consolidated Ordinary Income and Net Income Attributable to Owners of Parent A turn around from a loss to profit in ordinary income due to an increase in operating income and improvement in non-operating income and expenses. A turn around from a loss
Slide 16: Non-operating Income and Expenses and Extraordinary Income (Loss)
Financial Results for 3Q (1-3Q) of FYE3/’18 - Non-operating Income and Expenses and Extraordinary Income (Loss) （Million yen） 1-3Q 1-3Q YoY Change FYE3/’17 FYE3/’18 Non-operating income and expenses -1,753 -467 +1,286 Total non-operating income 732 1,060 +328 Interest income 111 127 +16 Dividend inc
Slide 17: Balance Sheet Summary
Financial Results for 3Q (1-3Q) of FYE3/’18 - Balance Sheet Summary （Billion yen） End of FYE3/’17 End of 3Q FYE3/’18 YoY Change Total assets 262.3 254.8 -7.4 Interest-bearing debts 70.3 67.2 -3.0 Net debt 28.5 27.7 -0.8 Net debt/equity ratio (times) 0.51 0.45 -0.06 Net Assets 61.5 65.6 + 4.1 Shareho
Slide 18: Cash Flow Summary
Financial Results for 3Q (1-3Q) of FYE3/’18 - Cash Flow Summary Cash flow from operating activities increased due to the recording of income before income taxes, coupled with an increase in cash inflow from collection of notes and accounts receivable-trade. Net cash used in investing activities
Slide 19: 2. Full-year Earnings Forecast for FYE3/'18
1. Overview of Financial Results for 3Q of FYE3/’18 2. Full-year Earnings Forecast for FYE3/’18 3. Topics
Slide 20: Full-year Earnings Forecast for FYE3/'18
Full-year Earnings Forecast for FYE3/’18 Consolidated earnings for the first nine months of the fiscal year under review progressed at a good pace against the period-start projections because the OEM Business in the AM Sector continued its run of strong sales, despite the effects of lower sales in
Slide 21: 3. Topics
1. Overview of Financial Results for 3Q of FYE3/’18 2. Full-year Earnings Forecast for FYE3/’18 3. Topics
Slide 22: Topics 1. Automotive Sector
Topics 1. Automotive Sector Aftermarket Business: Communicated Type Z top-of-the-line model of Saisoku-Navi series of navigation systems, dashcams, car AV units, and rear monitors, etc. at the Tokyo Auto Salon 2018. We will aim to further expand sales in the strong domestic market by increasing pr
Slide 23: Topics 2. Automotive Sector (Dashcams)
Topics 2. Automotive Sector (Dashcams) The total shipment volume in the Aftermarket Diagram of results and forecast of Business and the Dealer-installed Option domestic shipment volume for Business reached a record high in December JVCKENWOOD’s dashcams 2017, driven by greater demand in the domest
Slide 24: Topics 3. Public Service Sector (Communications Systems Business)
Topics 3. Public Service Sector (Communications Systems Business) JVCKENWOOD made Radio Activity, an Italy-based developer and seller of digital radio relay systems that are compatible with DMR-compliant digital radio system solutions, into a subsidiary in January 2018. The purpose was to enable t
Slide 25: Topics 4. Public Service Sector (Professional Systems & Healthcare)
Topics 4. Public Service Sector (Professional Systems & Healthcare) Professional Systems Business: • Expanded orders for audio/security camera systems from large convention halls. • Expanded the solutions business by taking measures such as starting to provide marketing cameras to commercial facil
Slide 26: Topics 5. MS Sector
Topics 5. MS Sector Media Business: • Demonstrated EXOFIELD out-of-head localization sound field processing technology at CES 2018, in an effort to have this technology deployed overseas. • Intensively strengthened the lineup of Bluetooth- enabled earphones. • Started shipping projectors to a lead
Slide 27: Forward-looking statements and risk factors
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