Japan Aviation Electronics Industry, Limited · TSE:6807

Japan Aviation Electronics Industry — FY2015 Earnings Presentation

34 slides from Japan Aviation Electronics Industry's earnings presentation, Apr 27, 2016

  1. Slide 1: Financial Results for FY2015

    Financial Results for FY2015 April 27, 2016 6807 Japan Aviation Electronics Industry. Ltd

  2. Slide 2: Agenda

    Agenda Technology to Inspire Innovation Ⅰ. Financial Results for FY2015 Ⅱ. Prospects and Strategy for FY2016 Copyright ©2016. Japan Aviation Electronics Industry. Ltd 2

  3. Slide 3: Financial Results for FY2015

    Technology to Inspire Innovation Ⅰ. Financial Results for FY2015 （April 1, 2015 to March 31, 2016） Copyright ©2016. Japan Aviation Electronics Industry. Ltd 3

  4. Slide 4: 1-1. Financial Results Overview

    1-1. Financial Results Overview Technology to Inspire Innovation Business Environment ▶ Deteriorated Macroeconomic influence due to stagnant Chinese economy and resource price fall during FY2015 2H ▶ Prolonged sluggish business in Industrial and Infrastructure market due to lower investment demand,

  5. Slide 5: 1-2. Sales & Incomes

    1-2. Sales & Incomes Technology to Inspire Innovation （JPY in 100 millions） Year/Year Change FY2013 FY2014 FY2015 (FY2015/FY2014) Net 1,598 1,912 1,795 -117 94% Sales Operating Income 165 259 179 -80 69% (to Net Sales) (10.3%) (13.5%) (10.0%) Ordinary Income 155 232 169 -63 73% (to Net Sales) (9.7%)

  6. Slide 6: 1-3. Sales & Incomes Growth

    1-3. Sales & Incomes Growth Technology to Inspire Innovation ▶ Achieved the second highest record beyond FY2013 ▶ Attained 112% of compound average growth rate since FY2011 (JPY in 100 millions) (JPY in 100 millions) 3,000 300 Net Sales 232 Income 2,500 155 169 200 158 Ordinary Income 125 77 106 2,0

  7. Slide 7: 1-4. Overseas Sales Growth

    1-4. Overseas Sales Growth Technology to Inspire Innovation ▶ Overseas sales fell due to slower smartphone market ▶ Domestic sales fell due to stagnant Industrial and Infrastructure market (JPY in 100 millions) 3,000 80% Net Sales 71% 71% Overseas Sales Ratio 2,500 66% 70% 61% 2,000 1,912 60% 54% 1,

  8. Slide 8: 1-5. Sales by Market Segment

    1-5. Sales by Market Segment Technology to Inspire Innovation ▶ Sales for Automotive steadily increased with double digit growth ▶ Sales declined in Industrial and Infrastructure market due to demand downturn in factory automation, machine tool, railway, oil drilling, in addition to Mobile Devices （

  9. Slide 9: 2-1. Sales by Business Segment

    2-1. Sales by Business Segment Technology to Inspire Innovation （JPY in 100 millions） Year/Year Change FY2013 FY2014 FY2015 （FY2015/2014） Connector 1,381 86% 1,691 89% 1,589 89% -102 94% UIS 63 4% 71 4% 80 4% 9 113% Aerospace 146 9% 142 7% 118 7% -24 83% Others 8 1% 8 0% 8 0% 0 96% Total 1,598 100%

  10. Slide 10: 2-2. Operating Income by Business Segment

    2-2. Operating Income by Business Segment Technology to Inspire Innovation （JPY in 100 millions） Year/Year Change FY2013 FY2014 FY2015 (FY2015/FY2014) Connector 193 14.0% 287 17.0% 221 13.9% -66 77% UIS -0 -0.5% 4 5.1% 11 13.2% 7 292% Aerospace 9 6.3% 7 4.9% -10 -8.7% -17 － Unallocatable Costs/Other

  11. Slide 11: 2-3. Connector Business

    2-3. Connector Business Technology to Inspire Innovation （JPY in 100 millions） ▶ Automotive continued 2,000 Sales by Market Segment double-digit growth by 11％ 1,691 year-on-year 1,589 PC, LCD, 140 92 ▶ Mobile Devices declined by year-on- TV, Others 1,381 189 162 year in 4Q due to market Industrial &

  12. Slide 12: 2-4. UIS Business

    2-4. UIS Business Technology to Inspire Innovation （JPY in 100 millions) Year on Year 113% 100 Sales by Market Segment ▶ Capacitive touch panel for 80 automotive steadily grew 71 3 (128％ year-on-year） 63 6 • more orders from major Others 29 Japanese customers 12 50 26 • Capacity expansion to meet In

  13. Slide 13: 2-5. Aerospace Business

    2-5. Aerospace Business Technology to Inspire Innovation （JPY in 100 millions） ▶ Sales for Defense and Space 200 Sales by Market Segment achieved year-on-year growth 150 146 142 ▶ Sales of accelerometer and Defense 118 sensor package for oil drilling & Space 63 54 customers overseas 100 significantl

  14. Slide 14: 3. Capital Investment & Depreciation

    3. Capital Investment & Depreciation Technology to Inspire Innovation ▶ Aggressive investment resulted in continuous growth ▶ Maintained our ordinal level of investment in FY2015, including product development for FY2016 (JPY in 100 millions) 300 266 Capital 250 220 222 224 Investment 200 150 135 24

  15. Slide 15: Prospects and Strategy for FY2016

    Technology to Inspire Innovation Ⅱ. Prospects and Strategy for FY2016 （ April 1, 2016 to March 31, 2017 ） Copyright ©2016. Japan Aviation Electronics Industry. Ltd 15

  16. Slide 16: 1. Market Outlook

    1. Market Outlook Technology to Inspire Innovation Mobile Devices ▶ While overall smartphone market growth is slowing down, further enhancement of functions will be continued Automotive ▶ Global production volume will increase slightly ▶ Demand of onboard electronics will expand due to technology ad

  17. Slide 17: 2. Strategy for FY2016

    2. Strategy for FY2016 Technology to Inspire Innovation ▶ JAE Management Strategy  Expand business by global marketing and enhanced development capability with timely product release  Improve profitability by technical and management innovation through in-house manufacturing  Continue investment

  18. Slide 18: 3-1. Prospects for FY2016

    3-1. Prospects for FY2016 Technology to Inspire Innovation （JPY in 100 millions） FY2015 FY2016 1H Projections Year/Year Change FY2016 Projections Year/Year Change Net Sales 1,795 932 -39 96% 2,100 305 117% Operating 179 68 -56 55% 190 11 106% Income (to Net Sales) (10.0%) (7.3%) (9.0%) Ordinary 169

  19. Slide 19: 3-2. Prospects for Sales by Business Segment

    3-2. Prospects for Sales by Business Segment Technology to Inspire Innovation FY2015 FY2016 1H projections Year/Year Change FY2016 Projections Year/Year Change Connector 1,589 826 -50 94% 1,870 281 118% UIS 80 38 -3 93% 82 2 102% Aerospace 118 64 14 127% 140 22 119% Others 8 4 0 96% 8 0 104% Total 1

  20. Slide 20: 3-3. Prospects for Sales by Market Segment

    3-3. Prospects for Sales by Market Segment Technology to Inspire Innovation FY2015 FY2016 1H Projections Year/Year Change FY2016 Projections Year/Year Change Mobil Devices 707 388 -37 91% 900 193 127% Automotive 684 338 -4 99% 740 56 108% Industrial & Infrastructure 246 133 6 105% 300 54 122% Others

  21. Slide 21: 4. Strategy ①Mobile Devices

    4. Strategy ①Mobile Devices Technology to Inspire Innovation Market Trend ▶ Continuous innovation and function advancement in smartphone • 3G and LTE promoted in emerging market (GSM still occupies 50% of worldwide mobile subscription) • Higher function in high-end product and function improvement i

  22. Slide 22: 4. Strategy ①Mobile Devices

    4. Strategy①Mobile Devices Technology to Inspire Innovation ▶ Expand USB Type-Ｃ™ DX07 series Expand DX07 ▶ Expand product line-up with competitive edge Harness line up Type-C ⇔ Type-C • Small, low height product with robustness Generation2 and easy use （10Gbps） • Low cost strategic products for low-

  23. Slide 23: Outlook for Mobile Device Connector

    Outlook for Mobile Device Connector Technology to Inspire Innovation ▶ Significant sales declined FY 2015 4Q due to stock and production adjustments ⇒ Expect market recovery after FY 2016 2Q ▶ Project significant sales increase after FY 2016 2Q/2H  USB Type-CTM Market expand(DX07 series)  Expansio

  24. Slide 24: USB Type-C 「DX07」 Sales Expansion

    USB Type-C™ 「DX07」 Sales Expansion Technology to Inspire Innovation Outlook of USB Type-C™ connector growth 2015 2016 2017 2018 Automotive Early Adopter Digital Home Appliance TV Early Adopter Spread Smart Phone Data Transmission / Power Supply Early Adopter Spread Connect Universally PC Data Transm

  25. Slide 25: 4. Strategy② Automotive

    4. Strategy② Automotive Technology to Inspire Innovation  More connecting parts ADAS, Connected Car  High speed Infotainment transmission need Visual  Human interface Communication and Infotainment Sensing Processing evolution （Camera） Competitive advantages in Automotive market ▶ High-speed tran

  26. Slide 26: 4. Strategy② Automotive

    4. Strategy ② Automotive Technology to Inspire Innovation ▶ Further expand in-vehicle infotainment connector series high-speed transmission connector launch (HDMI, camera, USB) ▶ Strengthen sales force and technical support in Europe Connector for Information and Connector for Automotive Communicati

  27. Slide 27: 4. Strategy③ Industrial and Infrastructure

    4. Strategy③ Industrial and Infrastructure Technology to Inspire Innovation Trend in Factory Automation Equipment ▶ Factory evolution：advanced sensor, networked, advanced robot → smart factory ▶ Servomotor market to expand in mid-term to supervise robot, tool machine Trend in Telecommunication Infra

  28. Slide 28: 4. Strategy③ Industrial and Infrastructure (Connector/UIS)

    4. Strategy③ Industrial and Infrastructure（Connector/UIS） Technology to Inspire Innovation ▶ Promote competitive products responding to technology evolution • One-touch mating, miniaturization, unique featured connector line-up • Input devices with touch sensor technology and mechanism design techno

  29. Slide 29: 4. Strategy③ Industrial and Infrastructure (Aerospace)

    4. Strategy③ Industrial and Infrastructure（Aerospace） Technology to Inspire Innovation ▶ Increased machinery business by 40% year-on-year as the largest Linear motor segment of commercial airplane demand • Expand linear motor business for semi-conductor / liquid crystal exposure apparatus （high prec

  30. Slide 30: 5. Integrated Evaluation & Test Laboratory

    5. Integrated Evaluation & Test Laboratory* Technology to Inspire Innovation ▶ Strengthen evaluation and test platform and offer reliable product ▶ Contribute to business expansion as our symbol for quality and reliability  Gathered test facilities at Akishima plant to improve test efficiency and q

  31. Slide 31: Dividends

    Dividends Technology to Inspire Innovation Basic policy of stable dividend payment ▶ FY2015：JPY 30 annual Interim：JPY 15, Year-end (projection)：JPY 15 ▶ FY2016 : JPY30 annual (Projection) (Interim：JPY 15, Year-end：JPY15) （JPY） 30 30 30 25 15 15 20 18 （Expected） Dividends (JPY) 15 10 10 10 Commemorat

  32. Slide 32: Middle term Financial Target

    Middle term Financial Target Technology to Inspire Innovation Maintain our growth path by aggressive marketing for FY2016 and make a steady step to achieve middle range management goal １ Sales JPY 250 billion ２ Net Income JPY 20 billion or more Copyright ©2016. Japan Aviation Electronics Industry. L

  33. Slide 33: Technology to Inspire Innovation

    Technology to Inspire Innovation

  34. Slide 34: Cautionary Statement

    Technology to Inspire Innovation <Cautionary Statement> The plans, strategies & results forecasts and targets for our company and our consolidated affiliates (hereinafter JAE) noted in these materials are forecasts and targets as of April 27, 2016, and include risks and uncertainties. The targets no

Japan Aviation Electronics Industry — FY2015 Earnings Presentation on 6ix