Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — FY2021/22 Earnings Presentation
51 slides from Johnson Electric's earnings presentation, May 2022
Slide 1: Investor Briefing May 2022 Annual Results
Investor Briefing May 2022 Annual Results For the year ended 31 March 2022
Slide 2: FY21/22 Investor Briefing Agenda
FY21/22 Investor Briefing Annual Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights Outlook Supplemental Information
Slide 3: Overview
3 Overview • • • • A global leader in • • • • Listed on the • • • • Workforce of over electric motors, Hong Kong 35,000 across actuators, motion Stock Exchange 22 countries subsystems and since 1984 related electro- mechanical components Automotive Industry Components Products Products and Group Gro
Slide 4: History & Development
4 History & Development Sales US$ 3.4bn Early Years 1982 - 1999 2000 - 2022 3.1bn Hong Kong HK listed company True global 2.1bn family business leveraging China to multinational 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 202
Slide 5: Stepping Up to Drive a Sustainable Future
Stepping Up 5 to Drive a Sustainable Future
Slide 6: Strategy Overview
6 Strategy Overview Focusing on Investing in Building a resilient Aligning design Making selective Developing and serving customers technology global and production acquisitions that retaining a diverse whose products innovation to manufacturing processes with the bring and talented team are aligned
Slide 7: Agenda: Why Invest in Johnson Electric?
FY21/22 Investor Briefing Annual Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights Outlook Supplemental Information
Slide 8: Why Invest in Johnson Electric
Why Invest in 8 Johnson Electric Innovative motion solutions for consumers’ needs today – and for the future Winning market traction Globally diversified sales and for sustainable growth world-class customer base Improving quality of life Global operating for everyone and creating footprint a sustai
Slide 9: Innovative Solutions for Proliferating Applications
Innovative Solutions 9 for Proliferating Applications Automotive Electrification & Environment Today Subsystems and components that enable Zero- and low-carbon electrification, optimize solutions to combat For & the thermal management, and climate change provide comfort and safety Smart Home & IOT E
Slide 10: Diversified Sales
10 Diversified Sales By Major Lines of Business By Destination
Slide 11: Diversified Customer Base
Diversified Customer Base 11 World-class Customers Across Diversified Industries 500 1300 Automotive Non-Auto Customers Customers Disclaimer: The customer tradenames and trademarks demonstrated herein are the properties of the respective customers. Their usage herein is for illustration purposes onl
Slide 12: Carbon Reduction: APG's Growth Opportunity
Carbon Reduction 12 APG’s Growth Opportunity NEV 2021- 2028 CAGR 24%
Slide 13: JE Automotive Products Well Positioned for Growth in NEV
JE Automotive Products 13 Well Positioned for Growth in New Energy Vehicles (NEV) ePump for JE Mild HEV PHEV cooling / lubrication Applications Suitable 48V system Generator for All Vehicle Types Shift- by-wire Thermal HEV BEV BLDC parts HVAC module Management Pump CFM Powder Metal gear Oil & Fluid
Slide 14: JE Automotive Products Engineered for Tomorrow
JE Automotive Products 14 Engineered for Tomorrow…Compatible with Today JE Mild HEV PHEV ITMS Applications for 48V system Generator Planetary Hybrid & BEV BEV assemblies HEV BEV PHEV HEV ESS Mild HEV blower E-turbo Charging port Fuel pump actuator ETC E-shift Resolver EGR (for 2 speed FD gerotor E-a
Slide 15: Well Positioned to Capitalize on the Automotive Market Move
Well Positioned 15 to Capitalize on the Automotive Market Move Johnson Electric’s Net Business Opportunities on NEV Source: Johnson Electric analysis – indicative based on current available market intelligence and estimates
Slide 16: Recent Automotive Business Wins for New Energy Vehicles
Examples of 16 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 re
Slide 17: JE Automotive Products for Autonomous Driving & Connectivity
JE Automotive Products 17 for Autonomous Driving & Connectivity JE Technologies Smart Smart Steering & Vision Closure Cabin Braking Window lift and sunroof motor Seat adjuster motor Steering-by-wire motor LiDAR motor EMB motor Brake-by-wire Sensor Power door washing opening system motor Power lift t
Slide 18: IPG Growth Supported by Megatrends
IPG Growth 18 Supported by Megatrends Smart Home and Internet of Things Electrification & Environment E-commerce & Industrial Touching Human Needs More energy efficient Healthcare Smaller and lighter Safer More controllable More connected Proliferating
Slide 19: Winning Market Traction
Winning 19 Market Traction Medium-term sales outlook 5-9% US$ 5.3bn CAGR US$ 3.4bn US$ 4.4bn New business wins 2-4% 3-4% and opportunities Global Global are set to sustain GDP vehicle growth growth growth FY21/22 Actual FY26/27 Forecast Note: estimated total Group sales outlook based on customer ord
Slide 20: Global Operating Footprint
Global Operating Footprint 20 Operating in 22 Countries across 4 Continents Manufacturing sites Sales & support offices Engineering sites Manufacturing, Sales & Support Office & Engineering sites
Slide 21: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 21 Johnson Electric’s Evolution CO2 and energy targets Our environmental strategy and policies address: Climate change Our use of Bees in Johnson Electric Brazil factory grounds natural resources including water 25% 15% and raw materials Pollution prevention 25% absolute CO2
Slide 22: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 22 Johnson Electric’s Evolution One Johnson around the world, a great company and a great place to work! Our global team is bound We thrive on innovation We hire the right people together by our shared and excel in execution and put them in the right values. The talent and to make
Slide 23: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 23 Johnson Electric’s Evolution We seek to identify social needs and fulfil these in a way that benefits both Johnson Electric and the local community JETC students at study and play in China and Mexico For example, the Johnson Electric Technical College founded in 2004, operating
Slide 24: Agenda: Key Financial Results
FY21/22 Investor Briefing Annual Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights Outlook Supplemental Information
Slide 25: Highlights
25 Highlights Group sales Gross profit Adjusted EBITA 3,446 US$ million 702 US$ million 244 US$ million up 9% compared to FY20/21 or 20.4% of sales (compared compared to US$ 336 million in to US$723 million or 22.9% of FY20/21 sales in FY20/21) Net profit attributable Underlying to shareholders net
Slide 26: Financial Highlights
Financial Highlights (& JOHNSON S ELECTRIC US$ million FY21/22 FY20/21 Sales 3,446.1 3,156.2 Gross profit 701.9 723.3 Gross margin 20.4% 22.9% EBITA' 222.4 290.1 EBITA adjusted 2 243.8 335.5 EBITA adjusted margin 7.1% 10.6% Profit attributable to shareholders 146.4 212.0 Underlying net profit 2 164.
Slide 27: Financial Highlights
Financial Highlights [& JOHNSON @ ELECTRIC USS million 31 Mar 2022 31 Mar 2021 Cash 345.4 539.5 Total debt 490.8 426.2 Net (debt) / cash ' (145.4) 113.3 Enterprise value 1,470.2 2,368.6 Key Financial Ratios 31 Mar 2022 31 Mar 2021 Enterprise value to EBITDA adjusted 8 3.0 4.3 Gross debt to EBITDA ad
Slide 28: Agenda: Operating Highlights
FY21/22 Investor Briefing Annual Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights Outlook Supplemental Information
Slide 29: Group Sales Changes FY21/22 vs. FY20/21
Group Sales Changes 29 FY21/22 vs. FY20/21 US$ million 52 17 3,446 133 88 3,156 Solid sales despite supply chain bottlenecks hampering markets FY20/21 APG IPG Currency Acquired FY21/22 sales volume / mix volume / mix movements business sales and price, net and price, net
Slide 30: APG Sales as Reported
APG Sales as Reported 30 Fiscal Year Comparison Sales grew above pre-COVID levels driven by the electrification of critical automotive functions, especially those required by hybrid and battery-electric vehicles
Slide 31: APG Sales Growth vs. Light Vehicle Production
APG Sales Growth vs. Light Vehicle Production 31 FY21/22 vs. FY20/21 Outperformed in all regions compared to the changes in light vehicle production
Slide 32: APG 5-Year Sales Changes vs. Light Vehicle Production
32 APG 5-Year Sales Changes vs. Light Vehicle Production APG has consistently outperformed light vehicle production over several successive years
Slide 33: IPG Sales as Reported
IPG Sales as Reported 33 Fiscal Year Comparison IPG benefited from the changes in consumer behavior that emerged during the pandemic and also gained from new business wins, product launches, enlarged market share and increased market demand
Slide 34: IPG Sales Growth By Region
IPG Sales Growth By Region 34 FY21/22 vs. FY20/21 Supply chain bottlenecks and COVID disruption caused customers to delay orders in Asia Europe and the Americas benefited from a rebound in sales to small and medium size enterprises and distributors, as well as growth in home- centric applications
Slide 35: IPG 5-Year Sales Trend
35 IPG 5-Year Sales Trend IPG has responded to overcome negative factors and gained additional impetus from changes in consumer behaviour as well as new product launches
Slide 36: Underlying Net Profit FY21/22 vs. FY20/21
Underlying Net Profit 36 FY21/22 vs. FY20/21 Higher volumes increased profit US$ million however this was 251 offset by higher logistics expenses, raw materials price (40) 12 165 (2) inflation and (56) increased labour costs The business was also impacted by the ending of COVID-19 related FY20/21 Vo
Slide 37: Working Capital and CAPEX
37 Working Capital and CAPEX Trade and Other Receivables Trade and Other Payables US$ 800 80 Days US$ 900 120 Days million sales million purchases 700 70 800 outstanding* 100 outstanding** 600 67 69 60 700 105 63 600 97 99 80 500 50 400 40 500 60 400 300 30 300 40 200 20 200 100 10 20 100 0 0 0 0 31
Slide 38: Free Cash Flow
[EJOHNSON 38 Free Cash Flow @ ELECTRIC US$ million FY21/22 FY20/21 Change EBITDA 470.8 509.6 (38.8) Other non-cash items 6.6 17.1 (10.5) Working capital changes (233.7) (42.4) (191.3) Capital expenditure* (315.5) (260.7) (54.8) Net interest, taxes and others (60.6) (52.5) (8.1) Free cash (out) /infl
Slide 39: Free Cash Flow
(E JOHNSON 39 Free Cash Flow \w ELECTRIC US$ million FY21/22 FY20/21 Change Free cash (out) /inflow from operations (132.4) 1711 (303.5) Acquisition and related costs (28.2) - (28.2) Dividends paid (54.2) (17.0) (37.2) Borrowings, net 62.7 8.2 54.5 Others (39.5) (29.6) (9.9) Currency translation (lo
Slide 40: Dividend Per Share
40 Dividends Significant pressures HK cents from inflation, COVID-19 60 and supply chain 50 51 51 51 disruptions including the 48 49 50 46 shortage of 44 Dividend Per Share semiconductors 40 40 34 The Board considers it 34 34 34 34 34 30 34 17 prudent to conserve 32 34 28 cash until operating 17 20
Slide 41: Agenda: Outlook
FY21/22 Investor Briefing Annual Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights Outlook Supplemental Information
Slide 42: Outlook
42 Outlook Sound underlying demand for Johnson Electric’s products and technology solutions Positive sales performance despite significant disruptions to global manufacturing supply chains Accelerating uptake of new energy vehicles (NEVs) – both hybrid and fully-electric Exciting growth oppo
Slide 43: Agenda: Supplemental Information
FY21/22 Investor Briefing Annual Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights Outlook Supplemental Information
Slide 44: Profitability Review FY21/22 vs. FY20/21
Profitability Review 44 FY21/22 vs. FY20/21
Slide 45: Profitability Review FY21/22 vs. FY20/21
Profitability Review 45 FY21/22 vs. FY20/21
Slide 46: From Reported to Underlying Net Profit
46 From Reported to Underlying Net Profit 1 Underlying net profit excludes unrealized gains or losses relating to exchange rate movements, and restructuring and other related costs to provide an additional measure to understand the long-term performance of the business
Slide 47: Average Exchange Rates FY21/22 vs. FY20/21
Average Exchange Rates 47 FY21/22 vs. FY20/21
Slide 48: Acquisition of Zimmermann
Acquisition of 48 Zimmermann Purchased on 31 Leading machining Complimentary to Machining May 2021 for specialist in the Stackpole’s powder know-how to meet consideration of area of automotive metal business the innovative EUR 24.1 million differential powertrain (US$29.3 million) housings r
Slide 49: Lean AI: AI Driven Quality Assurance Software
Lean AI 49 AI Driven Quality Assurance Software 7 Vast knowledge and Unique autonomous AI experience in Joint venture technology manufacturing formed on processes 18 October 2021
Slide 50: Why invest in Lean AI?
Joint Venture 50 Why invest in Lean AI? Lean AI intends to revolutionize quality inspection and reduce manufacturing costs Machine vision inspection Today, deployment takes weeks Significantly reduce deployment defect detection rates or even months time increase to over 90% Requires thousands
Slide 51: Disclaimer
51 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”, “inte
Johnson Electric Holdings — FY2021/22 Earnings Presentation on 6ix