Harada Industry Co., Ltd. · TSE:6904
Harada Industry — FY2013 Earnings Presentation
37 slides from Harada Industry's earnings presentation, Jun 24, 2014
Slide 1: Financial Results Presentation Slides for the Year Ended in March, 2014
Financial Results Presentation Slides for the Year Ended in March, 2014 Harada Industry Co., Ltd. June 24, 2014 This slides contains forward looking statements based on prerequisites, forecasts and plans available as of June 24, 2014. Actual results may differ materially from forward looking stateme
Slide 2: Contents
Contents I. Corporate Overview 4 1. Corporate Profile ....................................................................................................................................................... 2. Global Network ..…………………………………………..……………………………………………………………………………… 5 3. Major Products ……………
Slide 3: I. Corporate Overview
I. Corporate Overview HARADA
Slide 4: 1. Corporate Profile
1. Corporate Profile ◆ Established March 1958 ◆ Headquarters Omori Bellport B-4F, 26-2 Minami-Ohi, 6-Chome Shinagawa- ku, Tokyo, Japan ◆ Capital Stock 2,019 million yen ◆ Number of 355 Employees Consolidated: 5,818 (including 2,061 temporary workers) ◆ Consolidated Overseas: 11 Subsidiaries (Sales C
Slide 5: 2. Global Network
2. Global Network NIPPON ANTENNA (EUROPE) LIMITED *In liquidation HARADA INDUSTRY OF AMERICA, INC. HARADA INDUSTRIES (EUROPE) LIMITED HARADA INDUSTRIES (MEXICO), HARADA EUROPE R&D CENTRE S.A. DE C.V. DALIAN HARADA INDUSTRY CO., LTD. SHANGHAI HARADA NEW HARADA INDUSTRIES VIETNAM LIMITED AUTOMOTIVE AN
Slide 6: 3. Major Products 1
3. Major Products 1 LPA (Low Profile Antenna) Roof Antenna Designed to support AM+FM radio, digital radio (DAB), satellite radio, Designed to support AM+FM radio, digital TV (DTV) and so forth. satellite radio, telematics application Multi-band available. (GPS, mobile phone). Multi-band available. F
Slide 7: 3. Major Products 2
3. Major Products 2 Hidden Antenna Designed to be integrated into roof, trunk lid and bumper. Multi-band available. Amplifier for Glass Antenna Amplifying received electric signal. Circuit Board Antenna Coaxial Cables Connecting antennas and audio units. Film Antenna 7
Slide 8: II. Financial Results for FY2013 and Financial Plan for FY2014 (Consolidated)
II. Financial Results for FY2013 and Financial Plan for FY2014 (Consolidated) 8
Slide 9: 1. Net Sales Trend
1. Net Sales Trend (Hundred millions of yen) 400 Europe North and Central Americas 364 360 350 Asia 31 34 Japan 299 300 277 23 21 118 112 250 231 224 217 217 88 207 19 214 20 101 16 12 16 200 19 178 51 56 9 51 79 71 66 91 109 150 7 13 18 62 5 52 19 34 38 100 23 130 144 141 135 124 123 50 102 92 96 9
Slide 10: 2. Summary of Consolidated Statement of Income
2. Summary of Consolidated Statement of Income (Millions of yen) FY2012 Composition FY2013 Composition ratio ratio Increase or Previous Current decrease year (%) year (%) Net sales 29,935 100.0% 36,470 100.0% 6,534 Operating income 342 1.1% 1,337 3.7% 995 Ordinary income 590 2.0% 1,412 3.9% 821 Net
Slide 11: 3. Net Income Trend
3. Net Income Trend (Millions of yen) 1,600 1,234 1,256 1,200 1,112 977 861 847 800 561 550 474 400 0 (64) (400) (800) (766) FY2004 05 06 07 08 09 10 11 12 13 14 Current Next year Year (forecast) 11
Slide 12: 4. Changes in Operating Income
4. Changes in Operating Income (Millions of yen) Decrease in selling, general and administrative expenses 1600 - Decrease in distribution expenses Impact of - Decrease in depreciation expenses foreign exchange 1400 Increase in gross profit - Increase in net sales 1200 277 - Rise in cost to sales rat
Slide 13: 5. Summary of Consolidated Balance Sheet
5. Summary of Consolidated Balance Sheet (Millions of yen) FY2012 Component FY2013 Component Increase or Previous ratio Current ratio decrease year (%) year (%) Current assets 20,481 76.9％ 25,287 78.0％ 4,805 Noncurrent assets 6,167 23.1％ 7,124 22.0％ 956 Total assets 26,649 100.0％ 32,411 100.0％ 5,762
Slide 14: 6. Sales Breakdown by Reported Segments (FY2012 vs FY2013)
6. Sales Breakdown by Reported Segments (FY2012 Actual vs. FY2013 Actual) (Millions of yen) FY2012 Europe Previous year Previous Current 7.8% year year North and Impact of Increase or Net Central Japan FY2012 FY2013 foreign Americas 41.6% decrease change exchange 29.7% Asia 20.9% Japan 12,445 12,360
Slide 15: 7. Sales Breakdown by Reported Segments (FY2013 vs FY2014 Plan)
7. Sales Breakdown by Reported Segments (FY2013 Actual vs. FY2014 Plan) Europe FY2013 8.5% Current year (Millions of yen) North and Japan Current Next year (forecasts) Central 33.9% year Americas 32.5% Asia Increase or 25.1% FY2013 FY2014 decrease Japan 12,360 10,379 (1,981) FY2014 Asia 9,144 10,911
Slide 16: 8. Consolidated Cash Flow Trend
8. Consolidated Cash Flow Trend (Millions of yen) 4,000 Cash flows from operating activities 3,000 Cash flows from investing activities Cash flows from financing activities 2,000 1,000 0 (1,000) (2,000) (3,000) FY2004 05 06 07 08 09 10 11 12 13 Previous Current Year year FY2004 05 06 07 08 09 10 11
Slide 17: 9. Capital Expenditure Trend / 10. Depreciation Trend
9. Capital Expenditure Trend (Millions of yen) 2,000 1,500 1,385 1,139 979 1,000 801 666 636 643 536 502 500 186 0 FY2004 05 06 07 08 09 10 11 12 13 10. Depreciation Trend (Millions of yen) 1,200 1,000 892 807 824 758 800 653 674 708 656 567 541 600 400 200 0 FY2004 05 06 07 08 09 10 11 12 13 17
Slide 18: 11. Quarterly Net Sales Trend / 12. Quarterly Operating Income Trend
11. Quarterly Net Sales Trend (Millions of yen) 12,000 10,025 10,000 9,205 8,904 7,893 8,333 8,000 7,399 7,303 7,338 5,672 5,924 6,000 4,000 2,000 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2011 FY2012 FY2013 12. Quarterly Operating Income Trend (Millions of yen) 600 399 411 391 400 261 243 291 180 220 200 5
Slide 19: 13. Dividend and Stock Price Trend
13. Dividend and Stock Price Trend (Yen) 1,400 25.0 1,200 20.0 Dividends 20.0 1,000 Stock prices (highest) 15.0 800 12.5 Stock prices (lowest) 15.0 10.0 10.0 600 10.0 7.5 7.5 7.5 7.5 400 5.0 5.0 5.0 200 0 0.0 FY2004 05 06 07 08 09 10 11 12 13 14 Current Next year year （forecast） Stock Price Trend (Y
Slide 20: 14. Foreign Exchange Rate Trend
14. Foreign Exchange Rate Trend Stg.£ US$ RMB 250 Current Rate (Yen) 20 17.36 225 199.68 233.65 228.01 13.90 200 15 203.71 173.80 175 146.44 139.57 10 150 118.06 119.12 131.77 126.45 119.82 125 104.19 114.15 105.40 5 100 91.00 92.07 86.58 81.45 77.73 75 0 FY2004 05 06 07 08 09 10 11 12 13 Average Ra
Slide 21: III. Issues for Management
III. Issues for Management 21
Slide 22: 1. Operating Environment
1. Operating Environment Increase in automobile manufacturing volume Development in automobile media, communications and ITS Global expansion by Japanese automakers Many opportunities are in store for exponential growth going forward. 22
Slide 23: 2. Recent Developments
2. Recent Developments Acquired the automotive antenna business as well as overseas bases from Nippon Antenna Co., Ltd. Solidified relationships with major Japanese automakers Resolved to concentrate management resources in automotive antenna businesses 23
Slide 24: 3. Long-term Vision: NEXSTAGE
3. Long-term Vision NEXSTAGE 19 (For Fiscal Years 2013 to 2018) To be a global solution provider with strengthened product competitiveness, capability for providing services and capability for taking the lead in the competition as well as to enhance the corporate value with optimized corporate found
Slide 25: 4. Long-term Business Plan 1
4. Long-term Business Plan 1 Two pillars that enable achieving our new long-term vision Strengthen competitive advantages Establish an optimal corporate foundation 25
Slide 26: 4. Long-term Business Plan 2
4. Long-term Business Plan 2 Strengthen competitive advantages 1) Improve product competitiveness 2) Improve capability for providing services 26
Slide 27: 4. Long-term Business Plan 3
4. Long-term Business Plan 3 Strengthen Competitive Advantages 1) Improve product competitiveness 2) Improve capability for providing services - Strengthen cost competitiveness - Develop new products and upgrade existing products - Ensure adequate quality of products - Establish optimal supply chain
Slide 28: 4. Long-term Business Plan 4
4. Long-term Business Plan 4 Strengthen Competitive Advantages 1) Improve product competitiveness 2) Improve capability for providing services - Improve capabilities in collecting and analyzing information - Strengthen capabilities in research and planning - Enhance capabilities in proposing product
Slide 29: 4. Long-term Business Plan 5
4. Long-term Business Plan 5 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management 29
Slide 30: 4. Long-term Business Plan 6
4. Long-term Business Plan 6 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Reinforce collaboration among the Group - Improve and streamline working environment and operations - Enhance develo
Slide 31: 4. Long-term Business Plan 7
4. Long-term Business Plan 7 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Establish a highly reliable brand as “the one and only automotive antenna supplier in the world with a global networ
Slide 32: 4. Long-term Business Plan 8
4. Long-term Business Plan 8 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Enhance headquarters functions - Maximize synergy within the Group by explicitly dividing work among each Group Comp
Slide 33: 5. Quantitative Targets for FY2018 (Consolidated)
5. Quantitative Targets for FY2018 (Consolidated) Net sales Over 40 billion yen Operating income margin Over 10.0％ 33
Slide 34: Reference. Automobile Manufacturing Trend
Reference. Automobile Manufacturing Trend 34
Slide 35: 1. Domestic Automobile Manufacturing Trend
1. Domestic Automobile Manufacturing Trend (Thansands) FY2011 FY2012 FY2013 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Toyota Nissan Mitsubishi Mazda Honda Suzuki Others Number of vehicle production by car manufacturers (Thousands) Toyota Nissan Mitsubishi Mazda Honda Suzuki Others Total FY2011 3,119
Slide 36: 2. Overseas Automobile Manufacturing Trend
2. Overseas Automobile Manufacturing Trend (Thousands) 40,000 Asia Europe 35,000 North and Central Americas 30,000 25,000 20,000 15,000 10,000 5,000 0 2011 2012 2013 Asia 28,543 30,845 33,413 Europe 17,957 17,019 17,112 North and Central 13,125 15,434 16,176 Americas (Reference: Automotive Industry
Slide 37: Forward-looking statements notice
This slides contains forward looking statements based on prerequisites, forecasts and plans available as of June 24, 2014. Actual results may differ materially from forward looking statements described here due to risks and variable factors associated to global economic conditions, a competitive env