Slide 1: Results and Forecasts Briefing, Third Quarter FYE March 2016
Translation for Reference Only JVCKENWOOD Results and Forecasts Briefing Third Quarter of Fiscal Year Ending March 2016 JVCKENWOOD Corporation February 3, 2016
Slide 2: Abbreviations
【Abbreviations】 AM Automotive sector Consumer (Business) Dealer-installed options (Business) Factory-installed options (Business) ASK: ASK Industries S.p.A. PS Public Service sector COM: Communication systems (Business) Pro: Professional Systems (Business) Healthcare (Business) EFJT: EF Johnson Tech
Slide 3: Overview of financial results for the third quarter
1. Overview of financial results for the third quarter of the fiscal year ending March 2016 2. Review of First Nine Months of Fiscal Year Ending March 2016 and Measures in the 4th Quarter and Beyond 3. Full-year earnings forecast for FYE 3/’16 3
Slide 4: Overview of financial results for the third quarter
1. Overview of financial results for the third quarter of the fiscal year ending March 2016 2. Review of First Nine Months of Fiscal Year Ending March 2016 and Measures in the 4th Quarter and Beyond 3. Full-year earnings forecast for FYE 3/’16 4
Slide 5: Financial Results for 3Q of FYE3/'16 - Summary
Financial Results for 3Q(1-3Q) of FYE3/’16-Summary Achieved operating profitability on a nine-month basis as expected by management Net sales: Increased due to business acquisition effects (approximately JPY 12.7 billion), among other factors. Operating income: Decreased due to an increase in
Slide 6: Consolidated Net Sales (By Sector)
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Consolidated Net Sales (By Sector) Results for first nine months: JPY 214.5 billion (increase of 3.7% YoY) [Increase in sales] AM: Sales increased owing to the effects of making ASK a subsidiary while its sales to European automotive companies were
Slide 7: Consolidated Net Sales (By Region)
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Consolidated Net Sales (By Region) Results for first nine months: JPY 214.5 billion (increase of 3.7% YoY) [Increase in sales] Americas: Sales increased owing to such factors as the effects of launching new AM consumer products as well as improvemen
Slide 8: Consolidated Operating Income (By Sector)
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Consolidated Operating Income (By Sector) Results for first nine months: JPY 0.1 billion (decrease of 2.3 billion YoY) [Decreased income] AM: Income decreased due to such factors as a drop in consumer sales in the Middle and Near East and Europe as
Slide 9: Consolidated Operating Income (By Factor)
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Consolidated Operating Income (By Factor) Operating income decreased by approximately JPY 3.3 billion due to factors other than those included in the plan set at the beginning of the term such as effects of foreign exchange fluctuations and M&As. AM
Slide 10: Consolidated Ordinary Income
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Consolidated Ordinary Income Results for first nine months: loss of JPY 2.4 billion (decrease of 2.5 billion YoY) Ordinary income decreased mainly due to decreased operating income. Ordinary income (YoY change) (Billion yen) 1 Loss of Operating 0.1
Slide 11: Consolidated Net Income Attributable to Owners of Parent
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Consolidated Net Income Attributable to Owners of Parent Results for first nine months: loss of JPY 5.7 billion (decrease of 5.0 billion YoY) Extraordinary income/loss improved compared with the previous term when loss on sales of subsidiaries and a
Slide 12: Balance Sheet Summary
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Balance Sheet Summary Total assets: Merchandise and finished products as well as property, plant and equipment increased as a result of making ASK a subsidiary. Meanwhile, cash and deposits decreased due to a decline in notes and accounts receivable –
Slide 13: Interest-bearing Debts
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Interest-bearing Debts Interest-bearing debts decreased due to the completion of the redemption of bonds payable. Balance of long-term and short-term debts improved due to refinancing conducted. Financial expenses are expected to decrease by half in
Slide 14: Shareholders' Equity Ratio
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Shareholders’ Equity Ratio Shareholders’ equity declined due to a decrease in retained earnings, and net assets declined due to a decrease in foreign currency translation adjustments, among other factors. Shareholders’ equity ratio dropped 2.6 percent
Slide 15: Cash Flow Summary
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Cash Flow Summary Cash flows from operating activities increased. Meanwhile, cash flows from investing activities decreased due to increases in purchases of property, plant and equipment and purchase of intangible fixed assets in addition to making AS
Slide 16: (Reference) Information for 1-3Q by Sector
(Reference) information for 1-3Q by Sector 16
Slide 17: Automotive sector
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Automotive sector Net sales: Increased due to the start of shipment of dealer-installed products and to higher sales of factory-installed products owing to converting ASK into a consolidated subsidiary. Operating income: Income from the consumer bus
Slide 18: Public Service sector
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Public Service sector Net sales: Sales from professional communication systems decreased. Sales from the professional systems business also fell due to the effects of a product lineup reduction for overseas markets, among other factors. Operating in
Slide 19: Media Service sector
Financial Results for 3Q (1-3Q) of FYE 3/’16 - Media Service sector Net sales: Sales in the Media Service sector decreased due to lower sales of professional camera products, among other factors. Sales decreased in the Entertainment segment due to the transfer of all shares of Teichiku, among othe
Slide 20: Review of First Nine Months and Measures in 4th Quarter and Beyond
1. Overview of financial results for the third quarter of the fiscal year ending March 2016 2. Review of First Nine Months of Fiscal Year Ending March 2016 and Measures in the 4th Quarter and Beyond 3. Full-year earnings forecast for FYE 3/’16 20
Slide 21: Review of First Nine Months of Fiscal Year Ending March 2016
Review of First Nine Months of Fiscal Year Ending March 2016 Results Achieved overall operating profitability as expected by management As for AM consumer products, a strong performance was achieved by navigation systems in Japan as well as audio and display audio products in the U.S. In the
Slide 22: Measures to expand sales and increase profits in a significant manner
Measures in the fourth quarter Measures to expand sales and increase profits in a significant manner AM consumer products Maximize sales through model changeovers for navigation and display audio products, including Apple CarPlay-compatible new navigation products unveiled at the CES 2016 event
Slide 23: AM sector measures: Developing innovative digital cockpit systems
AM sector measures Developing innovative digital cockpit systems Unveiled and exhibited a new concept-based model at the CES 2016 event ̶ Equipped with All in One Head Up Display, a function leveraging our various core technologies, as a means of minimizing the driver’s line of sight movements w
Slide 24: AM sector measures: 10th anniversary of collaboration with Garmin
AM sector measures The 10th anniversary of collaboration with Garmin Ltd., a major car navigation system company Become more competitive in the consumer market ̶ Provide products compatible with Apple CarPlay and Android Auto, thus delivering comfortable maneuverability and a superior entertainm
Slide 25: Full-year earnings forecast for FYE 3/'16
1. Overview of financial results for the third quarter of the fiscal year ending March 2016 2. Review of First Nine Months of Fiscal Year Ending March 2016 and Measures in the 4th Quarter and Beyond 3. Full-year earnings forecast for FYE 3/’16 25
Slide 26: Full-year earnings forecast for FYE 3/'16
Full-year earnings forecast for FYE 3/’16 Retain our full-year earnings forecast Achieved profitability for first nine months. Domestic sales of AM consumer products remained strong, as in the first half of FYE 3/’16, and the business performance of the U.S. PS communication systems subsidiary r
Slide 27: Forward-looking statements
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 other