Alps Alpine Co., Ltd. · TSE:6770
Alps Alpine — FY2022 Earnings Presentation
34 slides from Alps Alpine's earnings presentation, Apr 28, 2023
Slide 1: Results Briefing FY2022
Securities Code：6770 Results Briefing FY2022 April 28, 2023
Slide 2: Agenda
2 １ FY2022 Consolidated Financial Results (1) Relative to forecasts (2) Relative to previous fiscal year ２ FY2023 Consolidated Financial Forecast ３ Shareholder Return Forecast ４ Mid-Term Business Plan Progress Report Details to be provided at May 26 IR day ５ Basic Data 2
Slide 3: Agenda: FY2022 Consolidated Financial Results
3 １ FY2022 Consolidated Financial Results (1) Relative to forecasts (2) Relative to previous fiscal year ２ FY2023 Consolidated Financial Forecast ３ Shareholder Return Forecast ４ Mid-Term Business Plan Progress Report Details to be provided at May 26 IR day ５ Basic Data 3
Slide 4: FY2022 Summary
FY2022 Summary Relative to October 28 forecasts, operating income for FY2022 came in lower due to an overoptimistic outlook, and profit attributable to owners of parent came in lower due to an extraordinary loss. 【Sales】 Net sales grew year on year due mainly to the impact of yen depreciation and th
Slide 5: Agenda: FY2022 Consolidated Financial Results
5 １ FY2022 Consolidated Financial Results (1) Relative to forecasts (2) Relative to previous fiscal year ２ FY2023 Consolidated Financial Forecast ３ Shareholder Return Forecast ４ Mid-Term Business Plan Progress Report Details to be provided at May 26 IR day ５ Basic Data 5
Slide 6: FY2022 Financial Results (Relative to October forecasts)
FY2022 Financial Results (Relative to October 28 forecasts) [Unit: ¥ billion] Profit undershot full-year forecasts announced on October 28 Net sales FY2022 Forecast FY2022 Results Difference ⚫ Products for smartphones performed strongly 905.0 933.1 Increase driven by recovery in automobile productio
Slide 7: FY2022 Financial Results (Relative to October forecasts) by segment
FY2022 Financial Results (Relative to October 28 forecasts) [Unit: ¥ billion] Main impact was from insufficient revenue improvements in the Module and System segment FY2022 FY2022 Difference 【Impact factors for operating income】 Forecast Result Net Sales Component 310.0 329.0 +19.0 6% Component segm
Slide 8: Change Factors (relative to October 28 forecasts)
Module and System Segment Second Half Operating Income Change Factors (relative to October 28 forecasts) [Unit: ¥ billion] Issue: Poor grasp of impact of changes on financial results during fiscal year and bad follow-up response Cause: Unclear roles for persons responsible for management of financia
Slide 9: Module and System Segment Improvement of Systems
Module and System Segment Improvement of Systems Change to management structure that the business responsibility area for returning the Module and System segment to profit and make speedy judgments and implement actions to respond to changes 【Before change】 【After change】 〇 New orders won through in
Slide 10: Agenda: Relative to previous fiscal year
10 １ FY2022 Consolidated Financial Results (1) Relative to forecasts (2) Relative to previous fiscal year ２ FY2023 Consolidated Financial Forecast ３ Shareholder Return Forecast ４ Mid-Term Business Plan Progress Report Details to be provided at May 26 IR day ５ Basic Data 10
Slide 11: Year-on-Year Comparison of Full-Year Consolidated Results
Year-on-Year Comparison of Full-Year Consolidated Results [Unit: ¥ billion] Net sales rose and operating income fell year on year, while net income plunged due to ¥8.9 billion extraordinary loss Impact of FY2021 Results FY2022 Results YoY exchange rate Net Sales 802.8 933.1 +130.2 +125.8 100.0% 100.
Slide 12: Year-on-Year Changes in Operating Income
Year-on-Year Changes in Operating Income Deterioration in variable costs (inflation) more than offset positive impact of yen [Unit: ¥ billion] depreciation, leading to year-on-year decline in profit Effect from Variable exchange cost rates ・Higher wages Net ・Soaring energy costs sales Depreciation e
Slide 13: Year-on-Year Changes of Consolidated Balance Sheet
Year-on-Year Changes of Consolidated Balance Sheet [Unit: ¥ billion] FY2021 FY2022 Change FY2021 FY2022 Change Notes and accounts ① Cash and deposits 139.7 84.1 -55.5 payable - trade 85.2 98.5 13.3 Notes and accounts 156.4 176.9 20.4 Short-term loans payable 57.0 77.2 20.1 receivable - trade ② Inven
Slide 14: Agenda: FY2023 Consolidated Financial Forecast
14 １ FY2022 Consolidated Financial Results (1) Relative to forecasts (2) Relative to previous fiscal year ２ FY2023 Consolidated Financial Forecast ３ Shareholder Return Forecast ４ Mid-Term Business Plan Progress Report Details to be provided at May 26 IR day ５ Basic Data 14
Slide 15: Outlook for FY2023
Outlook for FY2023 During FY2023, we will steadily implement our initial plans, respond flexibly to changing circumstances under the new role structure, and make returning the Module and System segment to profit our highest priority. 【Market conditions】 • Despite the risk of a drop in demand in Chin
Slide 16: FY2023 Forecasts
FY2023 Forecasts [unit: ¥ billion] FY2022 FY2023 Results 1H Forecast 2H Forecast FY Forecast YoY Net Sales Component 329.0 143.0 154.0 297.0 -32.0 Sensor & Communication 85.5 37.0 41.0 78.0 -7.5 Module & System 481.3 255.0 285.0 540.0 +58.6 Subtotal 895.9 435.0 480.0 915.0 +19.0 Logistics / others 3
Slide 17: Module & System Segment Profit Improvement Plan
Module & System Segment Profit Improvement Plan [Unit: ¥ billion] 【Initiatives】 ・Address changes during the fiscal year Net sales/ ・Strengthen internal Development Price optimization Effect from management structure exchange rates costs Improvement of internal costs Soaring component costs Fixed cos
Slide 18: Agenda: Shareholder Return Forecast
18 １ FY2022 Consolidated Financial Results (1) Relative to forecasts (2) Relative to previous fiscal year ２ FY2023 Consolidated Financial Forecast ３ Shareholder Return Forecast ４ Mid-Term Business Plan Progress Report Details to be provided at May 26 IR day ５ Basic Data 18
Slide 19: Shareholder Return Forecast
Shareholder Return Forecast 2nd Mid-Term Business Plan Shareholder Return Policy • Shift of emphasis from “stable dividend” to “stable dividend + performance-linked dividend” • For a single fiscal year, the greater of 25% or ¥20 as a minimum dividend • Average total shareholder return of 35% for the
Slide 20: Agenda: Mid-Term Business Plan Progress Report
20 １ FY2022 Consolidated Financial Results (1) Relative to forecasts (2) Relative to previous fiscal year ２ FY2023 Consolidated Financial Forecast ３ Shareholder Return Forecast ４ Mid-Term Business Plan Progress Report Details to be provided at May 26 IR day ５ Basic Data 20
Slide 21: Vision and 2nd Mid-Term Business Plan Targets
Vision and 2nd Mid-Term Business Plan Targets April 28, 2022 results meeting materials Corporate Vision and Business Vision “ITC101” FY2027 Innovative T-shaped Company with operating income margin and ROE of 10%, and operating income of ¥100.0 billion ・ Maximizing stakeholder value and balancing bot
Slide 22: ITC101/FY2027, Outcomes in FY2022
Mid-Term Business Plan Progress in Preparation for ITC101/FY2027, Outcomes in FY2022 【Earnings】 Inflation of 6% not brought sufficiently under control, 2-3% deterioration in operating margin 【Winning future business】 Prospect of ITC101 becoming visible. Outcomes relative to one year ago exceeding ex
Slide 23: Mid-Term Business Plan Progress in Preparation for ITC101/FY27
Mid-Term Business Plan Progress in Preparation for ITC101/FY27 Integration synergies: “birth pains, at the stage of upfront investments” 3 business/product transformations for ITC 101: ①Amusement ¥50.0bn/3rd pillar, ②S&C＋solutions, ③M&S to ¥650.0bn Balanced growth in Electronic Components and Automo
Slide 24: Initiatives to Achieve Greater Management Awareness of Cost of Capital and Share Price
Initiatives to Achieve Greater Management Awareness of Cost of Capital and Share Price The “PBR higher than 1.0” approach Highest priority for FY2023: improve factors ①-③ that are depressing the share price, and recover the trust of the market ① Doubts about M&S profitability ② Lack of transparency
Slide 25: Agenda: Basic Data
25 １ FY2022 Consolidated Financial Results (1) Relative to forecasts (2) Relative to previous fiscal year ２ FY2023 Consolidated Financial Forecast ３ Shareholder Return Forecast ４ Mid-Term Business Plan Progress Report Details to be provided at May 26 IR day ５ Basic Data 25
Slide 26: Amount of Effect from Exchange Rates
Amount of Effect from Exchange Rates 26 Not include the cost impact of inflation [Unit: ¥billion/month [Unit: ¥ billion/month/per ¥1] /per ¥0.1] USD EUR CNY Net Sales 0.39 0.03 0.05 Consolidated Operating income 0.13 -0.00 -0.01 Net Sales 0.18 0.01 0.00 Component Operating income 0.09 0.00 -0.03 Net
Slide 27: Annual Changes
Annual Changes Results Forecast 2018 2019 2020 2021 2022 2023 1st Half Statement of Income Net Sales 851.3 810.5 718.0 802.8 933.1 935.0 444.0 [Unit：￥billion] Domestic 158.2 154.4 135.8 144.5 108.5 - - Overseas 693.0 656.1 582.1 658.3 824.5 - - Operating Income 49.6 26.7 13.1 35.2 33.5 32.5 8.5 Ordi
Slide 28: Annual Changes
Annual Changes Results Forecast 2018 2019 2020 2021 2022 2023 1st Half Net Sales [Unit：￥billion] 851.3 810.5 718.0 802.8 933.1 935.0 444.0 Component - - - 262.2 329.0 297.0 143.0 Sensor & Communication - - - 79.9 85.5 78.0 37.0 Module & System - - - 368.6 481.3 540.0 255.0 Electronic Components 468.
Slide 29: Annual Changes
Annual Changes Results Forecast 2018 2019 2020 2021 2022 2023 1st Half Capital Expenditures [Unit：￥billion] 52.9 42.3 40.3 53.0 50.7 51.0 41.6 Component - - - 21.4 20.9 19.1 15.7 Sensor & Communication - - - 4.5 6.2 5.8 4.8 Module & System - - - 19.5 22.1 24.5 20.0 Electronic Components 33.2 25.7 25
Slide 30: Annual Changes
Annual Changes Results 2018 2019 2020 2021 2022 Order Backlog [Unit：￥billion] 65.4 48.7 76.8 84.7 63.1 Component - - - 43.1 37.8 Sensor & Communication - - - 19.3 13.2 Module & System - - - 22.1 12.0 Electronic Components 39.4 38.5 58.7 - - Automotive Infotainment 25.9 10.2 18.1 - - Logistics - - -
Slide 31: Annual Changes
Annual Changes Results 2018 2019 2020 2021 2022 Net Sales (by region) [Unit：￥billion] 851.3 810.5 718.0 802.8 933.1 Japan 136.4 133.6 107.1 113.2 164.9 China 167.8 155.5 156.0 144.1 160.2 Korea 42.9 38.9 60.8 113.3 138.0 United States 158.2 154.4 135.8 144.5 108.5 Other 345.9 327.9 258.0 287.6 361.2
Slide 32: Quarterly Changes
Quarterly Changes [Unit: ¥ billion] Net Sales 249.3 246.3 234.1 225.8 232.4 220.6 214.0 221.1 221.1 222.4 206.8 205.7 204.7 212.9 209.5 204.9 202.2 189.5 185.3 184.2 192.6 177.6 174.7 135.4 Operating Income 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12.3% Operating incom
Slide 33: Quarterly Changes
Quarterly Changes [Unit: ¥ billion] FY2021 FY2022 1Ｑ 2Ｑ 3Ｑ 4Ｑ FY 1Ｑ 2Ｑ 3Ｑ 4Ｑ FY Net Sales 174.7 192.6 225.8 209.5 802.8 204.9 249.3 246.3 232.4 933.1 Component 42.2 71.1 87.4 61.4 262.2 59.3 100.6 91.6 77.3 329.0 Sensor & Communication 18.9 20.1 20.2 20.6 79.9 19.9 24.4 21.6 19.4 85.5 Module & Syste
Slide 34: Quarterly Changes
Quarterly Changes (Unit：billion Yen) FY2021 FY2022 FY2021 FY2022 １Ｑ ２Ｑ ３Ｑ ４Ｑ １Ｑ ２Ｑ ３Ｑ ４Ｑ Jun.21 Sep.21 Dec.21 Mar.22 Jun.22 Sep.22 Dec.22 Mar.23 R&D Expenses 8.4 6.9 7.8 7.4 8.8 8.2 9.8 4.9 Inventories 110.9 128.6 127.4 133.4 155.7 175.0 174.3 165.4 Component 2.4 1.9 2.1 2.3 2.2 2.0 2.3 1.0 Componen