Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — FY2023/24 Earnings Presentation
48 slides from Johnson Electric's earnings presentation, May 2024
Slide 1: FY23/24 Annual Results Investor Briefing
FY23/24 Annual Results For the year ended 31 March 2024 Investor Briefing May 2024
Slide 2: Overview
FY23/24 Annual Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 3: Overview
Overview Automotive Industry Components & Products Group Products Group Services APG provides motion-related IPG serves a wide range of industrial, Our technical expertise, components for all vehicle types. We professional and consumer segments. in-house tool rooms and vertical are well-placed to ca
Slide 4: History & Development
History & Development Sales US$ 3.8bn 3.1bn Hong Kong Hong Kong listed Global family business company starting to multinational 2.1bn supply the world 1.7bn 1.1bn 677m 251m 126m 16m 54m Fiscal 1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2024 Year Founded by AC motor Listed on Ac
Slide 5: Driving a Sustainable Future
Driving a Sustainable Future A World of Motion. Powered by Sustainable Innovation…
Slide 6: Strategies
Strategies Develop Focus Invest Build Align Acquire and retain on serving in technological a resilient global the design and selective a diverse, customers whose innovation to manufacturing production businesses talented, and products are provide unique footprint to processes with that bring inclusi
Slide 7: Johnson Electric at a Glance – FY23/24
Johnson Electric at a Glance – FY23/24 Providing motion solutions Making over to approximately 4 million products* per day *motors and other motion related products 1,600 customers Operating in 22 countries across 4 continents Employing over Generating total sales revenue of 30,000 people US$3.8 bil
Slide 8: Why Invest in Johnson Electric?
FY23/24 Annual Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 9: Why Invest in Johnson Electric?
Why Invest in Johnson Electric? One of the World’s Largest Providers of Motion Solutions in electric motors, actuators, motion subsystems and related electromechanical components Innovative motion solutions for today and the future Geographically diverse, blue-chip customer base Global operating foo
Slide 10: Innovative Solutions for Today & the Future
Innovative Solutions For Today & the Automotive Smart Home & Electrification & Healthcare E-Commerce & IOT Environment Industrial Subsystems and Home automation for Zero-carbon solutions Medical device Industrial equipment, components that windows and robotic for mobility, lawn care subsystems for d
Slide 11: Our Divisions
Our Divisions •••• Automotive Industry Products Products Group Group • Braking • Thermal • Business • Lawn & garden • Closure management equipment • Medical devices • Interior • Transmission • Data Center • Power tools & driveline Cooling • Pumps • Robotics • Vision • E-bikes • Steering • Smart mete
Slide 12: Diversified Sales
Diversified Sales FY23/24 A World of Motion. Powered by Sustainable Innovation…
Slide 13: Diversified Customer Base
Diversified Customer Base World-class Customers Across Diversified Industries 400+ Automotive Customers 1100+ Non-Auto Customers Disclaimer: All customer tradenames and trademarks are the property of their respective owners. Their use in this presentation is for identification purposes only. A World
Slide 14: Market shift to net zero
Market shift to net zero APG’s Growth Opportunity • NEV 2023-2030 CAGR 16% • • A World of Motion. Powered by Sustainable Innovation…
Slide 15: JE Automotive Products: Enabling Electrification and Reducing Emissions
JE Automotive Products Enabling Electrification and Reducing Emissions ICE BEV Powder Metal JE Applications Suitable Shift- by-wire for All Vehicle Types Mild HEV PHEV parts Thermal Brushless DC module Management HEV Large Cooling E-oil fan pump Vision carrier module Power Closure Pump gear Braking
Slide 16: JE Automotive Products: Well Positioned for Growth in NEV
JE Automotive Products Well Positioned for Growth in New Energy Vehicles (NEV) Electric Integrated JE Mild HEV BEV supercharger system blower thermal management system Applications targeting Hybrid & BEV HEV PHEV Mild HEV HEV PHEV E-water Planetary BEV pump assemblies Fuel pump E-turbo Electric thro
Slide 17: Content Opportunity per Vehicle Increases
Content Opportunity per Vehicle Increases from ICE to Hybrid / BEV Electrifying critical EV functions Thermal Management Enabling critical EV • ITMS thermal management • Electric water Capitalizing on business opportunities for NEVs systems for enhanced pump driving range, extended • Valve actuator
Slide 18: Examples of Recent Automotive Business Wins for NEVs
Examples of Recent Automotive Business Wins for New Energy Vehicles Our innovative products are winning Braking Applications business on major NEV platforms Brake booster, e-parking lock, e-parking brake and electric vacuum pump for safety and shorter braking distance, lower weight, and energy regen
Slide 19: Autonomous Driving & Connectivity
Autonomous Driving & Connectivity Smart Smart Steering & Vision Closure Cabin Braking Window lift and sunroof motor Seat adjuster motor Steering-by-wire motor LiDAR motor Electro-mechanical braking motor Power door Sensor washing system opening motor Brake-by-wire Power lift tailgate / frunk motor R
Slide 20: IPG Growth Supported by Megatrends
IPG Growth Supported by Megatrends Focusing on Smart Home and Internet of Things sustainable growth prospects Electrification & Environment Touching Human Needs E-commerce & Industrial Healthcare Improving Performance A World of Motion. Powered by Sustainable Innovation…
Slide 21: Winning Market Traction
Winning Market Traction Medium-term sales outlook 4 9% US$ 5.9bn CAGR US$ 3.8bn US$ 4.6bn New business wins and opportunities 2 4% 1 3% Global Global are set to sustain GDP vehicle growth growth growth FY23/24 Actual FY28/29 Forecast Note: Estimated total Group sales outlook based on customer order
Slide 22: Global Operating Footprint
Global Operating Footprint Operating in 22 Countries across 4 Continents Workforce of over 30,000 across 22 countries Manufacturing sites Sales & support offices Engineering sites All A World of Motion. Powered by Sustainable Innovation…
Slide 23: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to Johnson Electric’s Evolution Our environmental strategy and policies address: CO2 and Energy Targets Energy and climate Waste Water Emissions Climate risks A World of Motion. Powered by Sustainable Innovation…
Slide 24: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to Johnson Electric’s Evolution We are a truly global team We thrive on innovation and We believe that hiring the right bound together by our shared excel in execution. We are people and putting them in the values. We recognize that the committed to making our right jobs maximize the
Slide 25: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to Johnson Electric’s Evolution JETC educating underprivileged youth in Our JEnerations teams organize China, Mexico and India local community activities Our flagship JETC and JEnerations programs give testimony to our commitment to contributing to “I am a graduate of the fourth JETC
Slide 26: Key sustainability achievements in FY23/24
ESG is Integral to Johnson Electric’s Evolution Key sustainability achievements in FY23/24 At Johnson Electric, every team and Engaging with our Launched 52% reduction in top 300 suppliers Healthy@JE every employee is CO2 from our factories to improve their employee wellness encouraged to take vs FY
Slide 27: Key Financial Highlights
FY23/24 Annual Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 28: Financial Highlights
Financial Highlights 1. Earnings before interest, tax and amortization 2. Adjusted to exclude unrealized gains or losses relating to exchange rate movements as well as restructuring and other related costs Note: Numbers do not add up due to rounding A World of Motion. Powered by Sustainable Innovati
Slide 29: Financial Highlights
Financial Highlights 1. Cash, cash equivalents and time deposits 2. Bank, bonds and other miscellaneous borrowings 3. Cash, cash equivalents and time deposits less total debt 4. Capital equals to total equity plus total debt 5. Net capital equals to total equity plus total debt minus cash. The net d
Slide 30: Operating Results
FY23/24 Annual Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 31: Group Sales Changes
Group Sales Changes FY23/24 vs. FY22/23 Sales increased 5% APG experienced strong demand, however, IPG’s end-markets remain subdued A World of Motion. Powered by Sustainable Innovation…
Slide 32: APG Sales Growth vs. Light Vehicle Production
APG Sales Growth vs. Light Vehicle Production FY23/24 vs. FY22/23 Increased sales in thermal management, powder metal components, oil pumps, braking and vision contributed to our double-digit growth A World of Motion. Powered by Sustainable Innovation…
Slide 33: APG Multi-Year Sales Changes vs. Light Vehicle Production
APG Multi-Year Sales Changes vs. Light Vehicle Production Long-term outperformance compared to light vehicle production, due to APG’s focus on : • Technologies for battery- electric & hybrid vehicles • Weight reduction • Safety & comfort Note: Lines for chart refer to cumulative performance Note: Cu
Slide 34: IPG Sales Growth by Region
IPG Sales Growth by Region FY23/24 vs. FY22/23 IPG faced subdued markets due to lingering inflation and economic uncertainty A World of Motion. Powered by Sustainable Innovation…
Slide 35: IPG Multi-Year Sales Trend
IPG Multi-Year Sales Trend A World of Motion. Powered by Sustainable Innovation…
Slide 36: Adjusted Net Profit
Adjusted Net Profit FY23/24 vs. FY22/23 Profit increased, mainly due to volume/mix changes, cost- saving initiatives, partial recovery of cost inflation, and lower freight rates 1 1 1. Unrealized gains or losses relating to exchange rate movements are significant non-cash items. Restructuring and ot
Slide 37: Working Capital and Capital Expenditure
Working Capital and Capital Expenditure Trade and Other Receivables Trade and Other Payables US$ Days US$ Days million sales million purchases outstanding* outstanding** Inventories Capital Expenditure US$ Days US$ CAPEX as million inventory million % of sales on hand A World of Motion. Powered by S
Slide 38: Free Cash Flow from Operations
Free Cash Flow from Operations * Capital expenditure, net of subsidies & proceeds from disposal of fixed assets A World of Motion. Powered by Sustainable Innovation…
Slide 39: Utilization of Free Cash Flow
Utilization of Free Cash Flow A World of Motion. Powered by Sustainable Innovation…
Slide 40: Dividends
Dividends A World of Motion. Powered by Sustainable Innovation…
Slide 41: Outlook
FY23/24 Annual Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 42: Outlook
Outlook Year ahead Subdued global macro-economic conditions Inflation easing only gradually Interest rates in Western economies potentially staying higher for longer Geopolitical tensions present the biggest risk to growth and international trade Conflicts in Ukraine and the Middle East
Slide 43: Supplemental Information
FY23/24 Annual Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 44: Profitability Review
Profitability Review FY23/24 vs. FY22/23 A World of Motion. Powered by Sustainable Innovation…
Slide 45: Profitability Review
Profitability Review FY23/24 vs. FY22/23 A World of Motion. Powered by Sustainable Innovation…
Slide 46: From Reported to Adjusted Net Profit
From Reported to Adjusted Net Profit 1. Unrealized gains or losses relating to exchange rate movements are significant non-cash items. Restructuring and other related costs are not part of the routine operations of the Group. This adjusted measure of net profit excluding non-cash foreign exchange ra
Slide 47: Average Exchange Rates
Average Exchange Rates FY23/24 vs. FY22/23 A World of Motion. Powered by Sustainable Innovation…
Slide 48: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric. Words such as “outlook”, “expects”, “anticipates”, “intends
Johnson Electric Holdings — FY2023/24 Earnings Presentation on 6ix