Seiko Group Corporation · TSE:8050
Seiko — Investor Presentation (2006)
19 slides from Seiko's investor presentation, Aug 30, 2006
Slide 1: The Third Medium-Term Management Plan
The Third Medium-Term Management Plan (For Three Years Ending 31 March 2009)
Slide 2: Content
Content I. Overview of the Second Medium-Term Management Plan 1. Results of basic policy 1 2. Achievements in comparison with the planned targets 2-3 II. The Third Medium-Term Management Plan 1. Basic management policy 4-6 2. Financial targets 7 -11 III. Targets by Business Segment 12 - 16
Slide 3: Overview of the Second Medium-Term Management Plan: Results of Basic Policy
I. Overview of the Second Medium-Term Management Plan 1 Results of Basic Policy (at the End of Final Fiscal Year) Ordinary income ratio of 6% Remains at slightly over the 3% level Reducing debt to 109 billion yen Reduced to 113 billion yen Enhancing shareholders’ equity (31 billion yen) and
Slide 4: Achievements in Comparison with the Planned Targets (1)
2. Achievements in Comparison with the Planned Targets (1) (a) Consolidated total Billions of yen Fiscal Year Ending 31 March 2006 Fiscal Year Ended 31 March 2003 Forecast Planned Targets Net sales 226.7 207.0 231.0 Operating income 12.4 8.0 18.0 Operating income ratio 5.5% 3.9% 7.8% Ordinary income
Slide 5: Achievements in Comparison with the Planned Targets (2) By business segment
2. Achievements in Comparison with the Planned Targets (2) (b) By business segment Billions of yen Fiscal Year Ended 31 Fiscal Year Ending 31 March 2006 March 2003 Forecast Planned Targets Operating Operating Operating Net Sales Income Net Sales Income Net Sales Income Watch Business 107.1 7.2 104.0
Slide 6: Basic Management Policy (1): Improving business profitability
II. The Third Medium-Term Management Plan 1. Basic Management Policy (1) (a) Improving business profitability Establishing a consolidated business base which targets improved profitability Reviewing and improving business processes to secure profits Thorough risk management and strengthening o
Slide 7: Basic Management Policy (2): Improving credibility
1. Basic Management Policy (2) (b) Improving credibility Implementing the following measures in order to give credibility to the group as a whole to obtain fair evaluation from the outside Further reducing interest-bearing debt Enhancing shareholders’ equity
Slide 8: Basic Management Policy (3): Reinforcement of corporate governance
1. Basic Management Policy (3) (c) Reinforcement of corporate governance Operating highly transparent corporate governance Striving for management that places emphasis on corporate social responsibility (CSR)
Slide 9: Financial Targets (1)
2. Financial Targets (1) Financial targets for the final year (1) Ordinary income ratio: 7% (2) Interest-bearing debt: 65 billion yen (reduction of 48 billion yen) (3) Shareholders’ equity: 85 billion yen (increase of 35 billion yen)
Slide 10: Financial Targets (2)
2. Financial Targets (2) Billions of yen Billions of yen Net sales and ordinary income targets 300 30 236.5 209.8 206.8 207.0 200 20 17.0 7.2% 7.2% 11.9 5.7% 100 5.7% 9.2 10 4.5% 7.0 4.5% 3.4% 3.4% 0 0 2004 2005 2006 (Forecast) 2009 (Planned) Year ending 31 March Net sales Ordinary income
Slide 11: Financial Targets (3)
2. Financial Targets (3) Net sales targets by business segment Billions of yen 300 32.0 200 14.5 36.5 33.5 32.0 32.0 13.5 12.4 12.5 25.0 28.8 28.5 53.0 40.7 37.2 37.0 100 102.4 104.0 112.0 101.6 0 2004 2005 2006 (Forecast) 2009 (Planned) Year ending 31 March Watch Business Precision Products Busines
Slide 12: Financial Targets (4)
2. Financial Targets (4) Operating income targets by business segment Billions of yen 24 22 20 18 0.8 16 1.0 1.4 14 12 0.7 3.5 0.7 10 3.2 0.3 0.5 8 0.2 0.5 0.0 6 10.4 4 7.3 7.8 7.5 2 0 (0.1) (0.7) (1.7) (0.3) -2 2004 2005 2006 (Forecast) 2009 (Planned) Year ending 31 March Watch Business Precision P
Slide 13: Financial Targets (5)
2. Financial Targets (5) Reducing interest-bearing debt and enhancing shareholders’ equity Fiscal Year Ending 31 March 2009 (Planned) Shareholders' Other debts equity 68.0 billion yen 85.0 billion yen 31.2% 39.0% Fiscal Year Ending 31 March 2006 (Forecast) Shareholders‘equity Other debts 50.0 billio
Slide 14: Targets by Business Segment: Watch Business
III. Targets by Business Segment 1. Watch Business Final Fiscal Year Targets Net sales 112.0 billion yen, Operating income 10.4 billion yen Expanding sales of high-end products both in Japan and overseas Strengthening product planning for ladies’ watches Further increasing the value of the SEI
Slide 15: Precision Products Business
2. Precision Products Business Final Fiscal Year Targets Net sales 53.0 billion yen, Operating income 3.5 billion yen Promoting the integration of technology development, production systems and marketing systems for a rapid response to market needs and changes Electronic devices business: a rapi
Slide 16: Optical Products Business
3. Optical Products Business Final Fiscal Year Targets Net sales 32 billion yen, Operating income 1.4 billion yen Lens business: Introducing products and providing service that meet market needs Frame business: Revitalising the SEIKO brand and strengthening licensed brands Overseas markets: En
Slide 17: Clock Business
4. Clock Business Final Fiscal Year Targets Net sales 14.5 billion yen, Operating income 1 billion yen Domestic market: Increasing sales and profits centred around high-end products and radio wave clocks Overseas markets: Developing strong marketing activities around the SEIKO brand Overseas p
Slide 18: Other businesses
5. Other businesses Final Fiscal Year Targets Net sales 32 billion yen, Operating income 0.8 billion yen Reorganising the structure so as to stop the slump in sales and to create stable profits Billions of yen Billions of yen 50 5 40 36.5 4 33.5 32.0 32.0 30 3 Net sales 20 2 Operating incom e 10 1
Slide 19: Cautionary note on estimates and plans
The estimates and plans which appear in this document have been prepared based solely on the information that was available as of the date on which the document was released. As a result, actual results may differ from the estimates plans due to a number of factors, such as changes in the business e