Slide 1: Financial Results Presentation Slides for the Year Ended in March, 2012
Financial Results Presentation Slides for the Year Ended in March, 2012 Harada Industry Co., Ltd. June 22, 2012 This slides contains forward looking statements based on prerequisites, forecasts and plans available as of June 22, 2012. Actual results may differ materially from forward looking stateme
Slide 2: Contents
I. Corporate Overview Contents 4 1. Corporate Profile ....................................................................................................................................................... 2. Global Network ..…………………………………………..……………………………………………………………………………… 5 3. Major Products ……………
Slide 3: I. Corporate Overview
I. Corporate Overview HARADAatf
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 239 Employees Consolidated: 3,934 (including 1,295 temporary workers) ◆ Consolidated Domestic 1, Overseas 8 Subsidiarie
Slide 5: 2. Global Network
2. Global Network NIPPON ANTENNA AMERICA, INC. (Stock acquisition: April 2, 2012) NIPPON ANTENNA (EUROPE) LIMITED (Stock acquisition: April 2, 2012) Nippon Antenna (Shanghai) Co., Ltd. (Equity acquisition: April 28, 2012) NIPPON ANTENNA (PHILIPPINES) INC. (Stock acquisition: May 25, 2012) Headquarte
Slide 6: 3. Major Products 1
3. Major Products 1 Roof Antenna Designed to support AM+FM radio, digital radio (DAB), Amplifier satellite radio, for Glass Antenna digital TV (DTV) and so forth. Amplifying received Multi-band available. electric signal. Film Antenna for DTV Onboard Noise Filter Reduce the noise of electric ETC/DSR
Slide 7: 3. Major Products 2
3. Major Products 2 LPA (Low Profile Antenna) Hidden Antenna Designed to be integrated into roof, trunk lid and bumper. Multi-band available. Designed to support AM+FM Circuit Board radio, satellite radio, telematics Antenna application (GPS, mobile phone). Coaxial Cables Film Antenna 7
Slide 8: II. Financial Results for FY2011 and Financial Plan for FY2012 (Consolidated)
II. Financial Results for FY2011 and Financial Plan for FY2012 (Consolidated) 8
Slide 9: 1. Net Sales Trend
1. Net Sales Trend (Hundred millions of yen) Europe North and Central Americas 300 290 Asia 277 Japan 30 21 250 231 231 217 224 19 217 214 217 20 207 20 83 20 101 16 12 16 200 19 61 51 56 178 49 9 71 66 51 79 150 1 2 7 13 18 56 52 5 19 34 38 100 23 147 144 144 141 135 130 120 50 102 92 96 95 0 FY200
Slide 10: 2. Summary of Consolidated Statement of Income
2. Summary of Consolidated Statement of Income (Millions of yen) FY2010 Composition FY2011 Composition ratio ratio Increase or Previous Current decrease year (%) year (%) Net sales 21,460 100.0% 21,727 100.0% 267 Operating income 1,483 6.9% 1,070 4.9% (412) Ordinary income 1,331 6.2% 1,021 4.7% (310
Slide 11: 3. Net Income Trend
3. Net Income Trend 1,600 (Millions of yens) 1,234 1,200 1,112 1,000 861 847 800 690 561 474 400 400 0 (64) (400) (800) (766) FY2002 03 04 05 06 07 08 09 10 11 12 Current Next year Year (forecasts) 11
Slide 12: 4. Changes in Operating Income
4. Changes in Operating Income Net increase in selling, general and 1600 administrative expenses Impact of 1400 (91) foreign exchange (164) 1200 (156) 1000 Slight increase in net sales and decrease in gross profit from rise in 800 cost to sales ratio 1,483 600 1,070 400 200 (Millions of yen) 0 FY201
Slide 13: 5. Summary of Consolidated Balance Sheet
5. Summary of Consolidated Balance Sheet (Millions of yen) FY2010 Component FY2011 Component Increase or Previous ratio Current ratio decrease year (%) year (%) Current assets 14,103 75.2% 14,361 73.8% 258 Noncurrent assets 4,655 24.8% 5,102 26.2% 446 Total assets 18,759 100.0% 19,464 100.0% 704 Cur
Slide 14: 6. Sales Breakdown by Reported Segments (FY2010 vs FY2011)
6. Sales Breakdown by Reported Segments (FY2010 Actual vs. FY2011 Actual) FY2010 Europe Previous year (Millions of yen) 5.9% Previous Current North and year Year Japan Central 44.9% Americas Impact of Increase or Net 33.3% FY2011 FY2012 foreign Asia decrease change 15.9% exchange Japan 9,625 9,598 (
Slide 15: 7. Sales Breakdown by Reported Segments (FY2011 vs FY2012 Plan)
7. Sales Breakdown by Reported Segments (FY2011 Actual vs. FY2012 Plan) FY2011 Europe Current year 7.5% (Millions of yen) North and Current Japan Next year (forecasts) Central year 44.2% Americas 30.7% Increase or Asia FY2011 FY2012 decrease 17.6% Japan 9,598 12,015 2,417 Asia 3,829 5,615 1,786 FY20
Slide 16: 8. Consolidated Cash Flow Trend
8. Consolidated Cash Flow Trend (Millions of yen) 3,000 Cash flows from operatin activities Cash flows from investing activities 2,000 Cash flows from financing activities 1,000 0 (1,000) (2,000) FY2002 03 04 05 06 07 08 09 10 11 Previous Current Year year FY2002 03 04 05 06 07 08 09 10 11 Operating
Slide 17: 9. Capital Expenditure Trend; 10. Depreciation Trend
9. Capital Expenditure Trend (Millions of yen) 2,000 1,500 1,385 1,139 1,000 979 657 723 666 636 536 502 500 186 0 FY2002 03 04 05 06 07 08 09 10 11 10. Depreciation Trend (Millions of yen) 1,000 831 807 824 800 674 708 656 662 653 600 567 541 400 200 0 FY2002 03 04 05 06 07 08 09 10 11 17
Slide 18: 11. Quarterly Net Sales Trend; 12. Quarterly Operating Income Trend
11. Quarterly Net Sales Trend 8,000 (Millions of yen) 5,259 5,806 5,176 5,372 5,672 5,924 6,000 4,900 5,079 5,217 4,757 4,000 2,000 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2009 FY2010 FY2011 12. Quarterly Operating Income Trend (Millions of yen) 800 618 600 408 434 399 360 423 400 306 261 200 68 (14) 0 (2
Slide 19: 13. Dividend and Stock Price Trend
13. Dividend and Stock Price Trend (Yen) 1,400 25.0 20.0 1,200 Dividend Stock prices (highest) 20.0 1,000 15.0 15.0 Stock prices (lowest) 800 12.5 12.5 15.0 10.0 600 10.0 7.5 7.5 400 5.0 5.0 5.0 200 0 0.0 FY2002 03 04 05 06 07 08 09 10 11 Stock Price Trend (Yen) FY2002 03 04 05 06 07 08 09 10 11 ●1,
Slide 20: 14. Foreign Exchange Rate Trend
14. Foreign Exchange Rate Trend Stg.£ US$ Current Rate (Yen) 250 228.01 225 192.6 233.65 200 190.08 199.68 203.71 175 146.44 150 131.77 126.45 125 119.95 107.15 118.06 119.12 114.15 119.82 104.19 100 91.00 92.07 81.45 77.73 75 FY2002 03 04 05 06 07 08 09 10 11 Average Rate (Yen) 250 235.94 225 187.9
Slide 21: III. Issues for Management
III. Issues for Management 21
Slide 22: 1. Operating Environment
1. Operating Environment 1 Operating environment surrounding the Company - Increase in automobile manufacturing volume in growing emerging markets - Development in automobile media, communications and ITS, which need antennas - Global expansion by Japanese automakers Many opportunities are in store
Slide 23: 1. Operating Environment 2
1. Operating Environment 2 Global Automobile Production Volume 12,000 11,500 11,000 10,500 10,000 110 million 9,500 76 million (2020) 9,000 (2011) 8,500 8,000 7,500 7,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2014 2017 2020 76 million 92 million 103 million 110 million (Reference: A
Slide 24: 2. Recent Development
2. Recent Development Under the operating environment surrounding the Company Evaluated that a merger can contribute to enhance and develop the Company’s group structure Resolved to acquire the automotive antenna business and overseas subsidiaries of Nippon Antenna Co., Ltd., which is our competitor
Slide 25: 3. Acquired Business
3. Acquired Business Transceiving Automotive antennas and devices Products Manufacturing TV antennas Business Nippon Communications antennas and devices Antenna Co., Ltd. Construction Electronic equipment for TV reception Business HARADA INDUSTRY CO., LTD. Automotive antennas and devices 25
Slide 26: 4. Acquired Business - Overseas Business Location
4. Acquired Business - Overseas Business Location Sales Companies Production Companies NIPPON ANTENNA AMERICA, INC. Nippon Ante(Shanghai) Co., Ltd. (Stock acquisition: April 2, 2012) (Equity acquisition: April 28, 2012) NIPPON ANTENNA (EUROPE) LIMITED NIPPON ANTENNA (PHILIPPNES) INC. (Stock acquisit
Slide 27: 5. Present Issues
5. Present Issues Present Issues of the Company Automotive antenna Stabilize the acquired business business and pursue the Overseas companies synergy business Asian emerging market Expand sales of automotive antennas Japanese, U.S. and European grown up and accessory devices market 27
Slide 28: 6. Middle-term Issues
6. Middle-term Issues April 2010 to March 2013 The 9th Middle-term Business Plan (3 years) Policy Enhance the group management power, practice further evolution of global network, improve brand value in global market, and build (business and company) foundations which enable to grow continually Rein
Slide 29: 7. Overriding Theme
7. Overriding Theme Overriding Theme of the 9th Middle-term Business Plan Stabilize the operation of acquired business and pursue the synergy - Conduct operation to make stabilization such as production, sales, R&D, logistics, procurement, etc. the first priority - Conduct cost savings by considerin
Slide 30: 8. Consolidated Plan For 2012
８．Consolidated Plan For 2012 Net sales 290 hundred million yen Operating income 9 hundred million yen Ordinary income 7 hundred million yen Net income 4 hundred million yen 30
Slide 31: Reference. Automobile Manufacturing Trend
Reference. Automobile Manufacturing Trend 31
Slide 32: 1. Domestic Automobile Manufacturing Trend
1. Domestic Automobile Manufacturing Trend 3,500 FY2009 FY2010 FY2011 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 FY2009 3,206 1,025 513 8
Slide 33: 2. Overseas Automobile Manufacturing Trend
2. Overseas Automobile Manufacturing Trend (Thousands) 35,000 This slides contains forward looking statements Asia based on prerequisites, forecasts and plans Europe 30,000 available as of June 22, 2012. Actual results may North and Central Americas differ materially from forward looking statements
Slide 34: Quality Antennas Worldwide
Quality Antennas Worldwide 34