Jvckenwood Corporation · TSE:6632
Jvckenwood — Q1 FY2014 Earnings Presentation
37 slides from Jvckenwood's earnings presentation, Jul 31, 2013
Slide 1: Supplementary Results and Forecast Briefing, Q1 FYE March 2014
Translation for Reference Only JVCKENWOOD Supplementary Results and Forecast Briefing First Quarter of Fiscal Year Ending March 2014 July 31, 2013 Copyright © 2013 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Abbreviations
[Abbreviations] CE: Car Electronics (Business) PS: Professional Systems (Business) COM: Communications Equipment (Segment) BS: Business Solutions (Segment) HM: Home & Mobile Electronics (Business) Sound: Sound & Acoustic Equipment (Business) Imaging: Imaging Equipment (Business) SE: Entertainment (B
Slide 3: Financial Results for 1Q FYE3/'14 - Summary
Financial Results for 1Q FYE3/’14 - Summary * Income increased in PS as a result of the recovery from the effects of the Thai floods in the previous year and an increase in the yen-equivalent value caused by foreign exchange fluctuations. * Consolidated net sales and income declined due to lower ear
Slide 4: Net Sales
Financial Results for 1Q FYE3/’14 - Net Sales Results for 1Q FYE3/’14 : JPY 69.8B (Down 4.5% YoY) * Consolidated net sales declined mainly due to lower net sales in HM caused by sluggish European economic conditions and the streamlining of products, and lower net sales in CE, although the yen-equiva
Slide 5: Net Sales (Change Analysis)
Financial Results for 1Q FYE3/’14 - Net Sales (Change Analysis) * Lower consolidated net sales were brought about primarily by lower sales in CE and a decline in sales in HM caused by sluggish European economic conditions and the streamlining of products. (Billion yen) Net sales (YoY change) 100 CE
Slide 6: Net Sales by Region
Financial Results for 1Q FYE3/’14 - Net Sales by Region (Reference) * Net sales declined in the Americas due to the weak performance of camcorders in HM. * Net sales dropped in Japan due to the effects of difficulties faced by CEOEM and HM. * Net sales in Europe declined on a local currency basis, a
Slide 7: Operating Income
Financial Results for 1Q FYE3/’14 - Operating Income Results for 1Q FYE3/’14 : JPY -1.0B (Down JPY 3.0B YoY) * Consolidated operating income decreased mainly due to a major fall in income in CE caused by stagnant economic conditions in Europe and Asia, and lower income in HM, which was caused by the
Slide 8: Operating Income (Change Analysis)
Financial Results for 1Q FYE3/’14 - Operating Income (Change Analysis) * Consolidated operating income declined mainly due to lower sales in CE caused by the effects of the European and Asian economic stagnation and foreign exchange fluctuations, as well as lower sales in HM resulting from the effec
Slide 9: Ordinary Income
Financial Results for 1Q FYE3/’14 - Ordinary Income Results for 1Q FYE3/’14 : JPY -1.6B (Down JPY 3.2B YoY) * Ordinary income decreased JPY3.2 billion year on year due to a decline in operating income. * Non-operating P/L deteriorated mainly due to a decrease in foreign exchange gain, although finan
Slide 10: Net Income
Financial Results for 1Q FYE3/’14 - Net Income Results for 1Q FYE3/’14 : JPY -2.0B (Down JPY 2.8B YoY) * Net income decreased JPY 2.8B year on year due to a decline in ordinary income. * Extraordinary profit/loss improved due to the recording of negative goodwill associated with making Shinwa a cons
Slide 11: Financial Status - Balance Sheet
Financial Results for 1Q FYE3/’14 - Financial Status Balance Sheet * Total assets increased approximately JPY 2.8B from the end of the previous fiscal year mainly from an increase in property, plants and equipment after making Shinwa a consolidated subsidiary. Additionally, assets increased due to a
Slide 12: Financial Status - Consolidated Statements of Cash Flow
Financial Results for 1Q FYE3/’14 - Financial Status 1Q FYE3/’14 Consolidated Statements of Cash Flow （Billion yen） 営業キャッシュ・フロー Cash flow from operating activities 投資キャッシュ・フロー Cash flow from investing activities 1Q FYE3/'14 1Q FYE3/'13 フリー・キャッシュ・フロー Free cash flow Income before income taxes -1.6 1.4
Slide 13: Information by Business Segment
Information by Business Segment 13
Slide 14: Net Sales and Profits & Losses by Business Segment - Summary
Net Sales and Profits & Losses by Business Segment - Summary CE： Sales and income decreased due to sluggish sales in both after-market and OEM. PS： Sales and income improved overall in PS as a result of the elimination of the effects from the floods in Thailand in BS, an increase in new orders domes
Slide 15: Car Electronics Business
Financial Results for 1Q - Car Electronics Business Net sales: JPY 25.2B (Down 6.8%), Operating income: JPY -0.3B (Down JPY 1.9B) After-market: Income decreased overall in the after-market due to weak sales of car audio products caused by the effects of economic stagnation in Europe and Asia, althou
Slide 16: Professional Systems Business
Financial Results for 1Q - Professional Systems Business Net sales: JPY 20.9B (Up 4.3%), Operating income: JPY -0.1B (Up JPY 0.2B) COM： Income increased due mainly to an increase new orders received in the domestic market and an increase in the yen-equivalent value, although the North American marke
Slide 17: Home & Mobile Electronics Business
Financial Results for 1Q - Home & Mobile Electronics Business Net sales: JPY 13.5B (Down 16.2%), Operating income : JPY -0.8B (Down JPY 0.9B) Sound & Acoustic: Income for the overall category decreased since home audio was impacted by market curtailment, although AV accessories recorded higher incom
Slide 18: Entertainment Business
Financial Results for 1Q - Entertainment Business Net sales: JPY 9.1B (Up 1.6%), Operating income: JPY 0.3B (Down JPY 0.4B) Content: Business was favorable mainly due to the effects of pieces launched by new and mid-catalog artists that were tied with commercials or adopted as main theme songs of TV
Slide 19: Key Initiatives in the 2Q and Beyond
Key Initiatives in the 2Q and Beyond 19
Slide 20: Initiatives in 2Q and Beyond - CE After-market (Japan)
Initiatives in 2Q and Beyond - CE After-market [Japan] The 26th Nikkan Jidosha Shimbun Car Accessories Award The “Saisoku” series won the Car Navigation Division Award Increase exposure in various types of media to boost actual sales during the active summer season and at special events. Shipments
Slide 21: Initiatives in 2Q and Beyond - CE After-market (Overseas)
Initiatives in 2Q and Beyond - CE After-market [Overseas] (10,000 units) Shipments and Share in Value of （％） 12 Navigations in the U.S. After-market 60 Respond to developed overseas markets. Strive to maintain the top share in the 8 Share of AV car navigation systems 40 developed overseas markets
Slide 22: Initiatives in 2Q and Beyond - CEOEM
Initiatives in 2Q and Beyond - CEOEM Expand sales of large-screen domestic dealer option navigation systems. Boost sales of “Saisoku-Navi”-applied AV car navigation systems for automakers. Strengthen the device business with a focus on strategic mechanisms. Revise the global production syste
Slide 23: Initiatives in 2Q and Beyond - COM
Initiatives in 2Q and Beyond - COM [Further growth in profits / Establishment of Net Sales and Operating Income Ratio of COM an earnings base] 10% [Americas] 8% Launch a low-tier model of “NEXEDGE” professional digital radio system. 6% Introduce the new P25 (professional digital radio system for
Slide 24: Initiatives in 2Q and Beyond - Professional & Healthcare
Initiatives in 2Q and Beyond - Professional & Healthcare Create new businesses by reinforcing the healthcare business on a global basis. Reinforce the solutions business with IP cameras at the core, and offer solutions for street surveillance, commercial facilities and other applications. Boos
Slide 25: Initiatives in 2Q and Beyond - Optical & Audio
Initiatives in 2Q and Beyond - Optical & Audio Audio [Headphones] Expand sales in emerging countries by promoting the exclusive model, and increase the unit price through distributing high- value-added models. Headphones for Hong "ésnsy” that won the Plus X Kong & China Award [Home audio] Expand
Slide 26: Initiatives in 2Q and Beyond - Imaging
Initiatives in 2Q and Beyond - Imaging Reinforce cost competitiveness of the existing product series (Everio). Work to reduce cost as well as launch the new ASIC-installed model while cutting the number of models to achieve lower power consumption and lower production cost. Expand sales of produ
Slide 27: Initiatives in 2Q and Beyond - Software & Entertainment
Initiatives in 2Q and Beyond - Software & Entertainment Potential hit-making releases in 2Q FYE3/’14 Southern All Stars A single release: “Peace & Hi-lite” “Amachan”, NHK’s morning TV drama Album “Amachan Buraban Koshiki-ban Suisogaku ‘Amachan’ Kyokushu” (A selection of wind-instrument band pieces f
Slide 28: Key Topics of the First Quarter
Key Topics of the First Quarter 28
Slide 29: Topics: Joint Venture with ZMP INC.
1Q FYE3/’14 - Topics Establishment of a joint venture with ZMP INC. （Announced on July 18, 2013) Aiming to set up a mechanism for the provision of various services for cars that are linked to an open Internet environment and establishing those services as a business. Internet network (Various types
Slide 30: Topics: i-ADAS Task Force
1Q FYE3/’14 - Topics New establishment of an innovative & advanced driving system (i-ADAS) task force i-ADAS：innovative Advanced Driver Assistance System Established with the purpose of quickly launching new business areas such as the head-up display business and the automatic car driving business.
Slide 31: Topics: Shinwa Becomes a Consolidated Subsidiary
1Q FYE3/’14 - Topics Shinwa becomes a consolidated subsidiary (Effective June 3, 2013) Aiming to create synergies in the optical disk drive mechanism for automobile-mounted equipment, and expand the water-based paint plastic panel business. (10,000 units) Sales Volume of Mechanisms 2,000 1,500 Shinw
Slide 32: Topics: TOTOKU Nagaoka Becomes a Consolidated Subsidiary
1Q FYE3/’14 - Topics TOTOKU Nagaoka Corporation becomes a consolidated subsidiary (Effective July 1, 2013) (New company name・・・JVCKENWOOD Nagaoka Corporation) Aiming to make a full-scale entry into the healthcare segment, and create synergies in the area of imaging technologies. Medical image presen
Slide 33: Introduction of New Segments and Full-Year Earnings Forecast for FYE3/'14
Introduction of New Segments and Full-Year Earnings Forecast for FYE3/’14 33
Slide 34: New Segments
New Segments Centralization of resources (Optical & Audio Business) Realignment of business segments in response to the market shift from consumer to professional Reinforcement of Optical Business, where JVCKENWOOD holds strength, and entry into the growth business of healthcare. After-market
Slide 35: New Segments - Reinforcing B-to-B Business
New Segments Accelerating reinforcement of B-to-B business (CE OEM + Target Ratio of Sales of B-to-B in Professional systems) by shifting FYE3/’16 >> 50％ production and development (Billion yen) 4,000 400 resources. 300 3,000 B to B Sales Growth Rate 2,000 200 Up 63% 50% 1,000 100 B to B 44% 0 FYE3/
Slide 36: Full-Year Earnings Forecast for FYE3/'14
Full-Year Earnings Forecast for FYE3/’14 In Q1, other than SE, three business segments did not reach planned projections. Hence, consolidated net sales, operating income, ordinary income and net income all fell short of the plan. The full-year earnings forecast will remain unchanged, since busin
Slide 37: Forward-looking statements notice
Expressions contained in this presentation referring to the Company‘s future plans, intentions and expectations are categorized as future forecast statements. Such statements reflect management expectations of future events, and accordingly, are inherently susceptible to risk, uncertainty and other