JTEKT Corporation · TSE:6473
JTEKT — FY2013 Earnings Presentation
37 slides from JTEKT's earnings presentation, May 14, 2014
Slide 1: Presentation for Fiscal Year Ending March 2014
1 Presentation for Fiscal Year Ending March 2014 May 14, 2014 JTEKT Corporation JTEKT Corporation
Slide 2: Results, Forecasts, VISION and Mid-Term Management Plan
2 １. Results for Fiscal 2013 2. Forecasts for Fiscal 2014 3. VISION・Mid-Term Management Plan JTEKT Corporation
Slide 3: 1-1) Consolidated Performance
3 1-1) Consolidated Performance JTEKT Corporation
Slide 4: 1-2) Quarter Trend
4 1-2) Quarter Trend Operating income rate (100 million yen) 5.4% 5.1% 4.0% 4.5% 6.7% 3.3% 3.5% 3.5% 3.0% 2.9% 1.4% 3,340 3,110 3,137 2,894 3,014 2,893 2,669 2,592 2,403 2,518 2,317 194 168 169 140 102 104 Sales 92 80 79 74 Operating 35 income FY2007*1 FY2010*2 FY2011*2 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13
Slide 5: 1-3) Operating Income Change Analysis
5 1-3) Operating Income Change Analysis Operating Income +290 （100million yen） Negative impact △111 Positive impact +401 ＋241 ＋74 582 ＋86 291 △65 △15 △31 Excludes Exchange Rate Impact Income Rise in Material Price Sales Growth Improvement Fallin Selling Price Level Rise in Raw Exchange Foreign FY201
Slide 6: 1-4) Financial Result by Product: Mechanical Components
6 1-4) Financial Result by Product 【Mechanical Components】 Net Sales Quarter Trend Operating Income Quarter Trend Operating Income 2,911 Operating Income Rate STG BRG DL 6.2% 2,681 2,685 2,763 2,386 2,529 358 4.8% 5.2% 5.1% 2,326 343 343 352 3.9% 2,205 2,156 148 3.7% 2,053 325 3.0% 369 2,001 315 276
Slide 7: 1-4) Financial Result by Product: Machine Tools
7 1-4) Financial Result by Product 【Machine Tools】 Net Sales Quarter Trend Operating Income Quarter Trend Operating Income Operating Income Rate 9.0% 9.1% 9.4% 8.2% 7.9% 8.4% 6.5% 5.2% 507 2.7% 425 428 45 386 361 365 373 4.1% 350 343 332 36 316 2.1% 31 28 28 30 24 22 12 11 7 FY2012 FY2013 FY2012 FY2
Slide 8: 1-5) Financial Result by Region: Japan
8 1-5) Financial Result by Region 【Japan】 Quarter Trend (100million yen) 6.0% 6.0% 6.4% Operating Income Rate 5.1% 5.4% 7.7% 3.7% 3.3% 3.3% 3.0% 1,586 1.8% 1,492 1,366 1,398 1,353 1,396 1,377 1,246 1,305 1,301 1,293 121 95 Net Sales 84 82 69 69 45 42 44 41 Operating 23 income 08/3期 11/3期 12/3期 13/3期
Slide 9: 1-5) Financial Result by Region: Europe
9 1-5) Financial Result by Region 【Europe】 (100million yen) Quarter Trend 1.5% △0.2% △1.9% △1.1% 2.1% △2.9% 579 △4.6% △5.0% △4.7% △5.3% △1.1% 552 494 484 442 452 346 343 326 326 298 12 8 △3 △8 △5 △1 △10 △15 △14 △15 △24 FY2007 FY2010 FY2011 FY2012 2Q 3Q 4Q FY2013 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 10: 1-5) Financial Result by Region: North America
10 1-5) Financial Result by Region 【North America】 (100million yen) Quarter Trend 2.5% 5.3% 0.8% 0.8% 1.3% 1.1% 0.4% 0.7% 3.2% △0.5% 3.2% 688 602 612 36 572 533 426 453 441 407 349 357 19 13 13 7 6 1 2 2 3 △1 FY2007 FY2012 FY2011 FY2012 2Q 3Q 4Q FY2013 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 11: 1-5) Financial Result by Region: Asia・Oceania
11 1-5) Financial Result by Region 【Asia・Oceania】 Quarter Trend (100million yen) 9.8% 10.4% 10.6% 9.1% 7.9% 8.6% 11.8% 12.2% 16.3% 13.1% 2.0% 443 376 381 378 367 304 318 320 227 242 214 52 46 34 29 31 33 29 29 32 23 7 FY2007 FY2010 FY2011 FY2012 2Q 3Q 4Q FY2013 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 12: 1-5) Financial Result by Region: China
12 1-5) Financial Result by Region 【China】 Quarter Trend (100million yen) 13.3% 11.1% 11.5% 11.2% 11.0% 12.1% 16.8% 10.0% 15.0% 7.2% 5.9% 235 186 194 185 180 138 112 121 107 88 25 22 20 18 21 46 17 14 14 7 9 5 FY2007 FY2010 FY2011 FY2012 2Q 3Q 4Q FY2013 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 13: 1-5) Financial Result by Region: Other
13 1-5) Financial Result by Region 【Other】 Quarter Trend (100million yen) 9.5% 7.0% 13.6% 4.6% 3.1% 4.6% 4.2% 1.0% 1.6% 1.4% △2.9% 55 54 49 51 48 47 40 43 40 39 39 5 3 3 2 2 2 1 0 0 0 △1 FY2007 FY2010 FY2011 FY2012 2Q 3Q 4Q FY2013 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 14: 1-6) Financial Data
14 1-6) Financial Data Inventories Interest-Bearing Dept Inventory Inventory turnover period Interest-Bearing Dept Net D/E Ratio 2.1 1.9 1.9 2,651 1,639 2,551 2,457 1,692 1,545 0.51 0.46 0.38 FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 Capital Expenditure Depreciation First-Half Second-Half First-Half
Slide 15: Agenda: Forecasts for Fiscal 2014
15 1. Results for Fiscal 2013 2. Forecasts for Fiscal 2014 3. VISION・Mid-Term Management Plan JTEKT Corporation
Slide 16: 2-1) External Environment
16 2-1) External Environment Sustainable mainly in developed countries ・US Market maintain good condition ・Slow recovery in Europe Market Stable growth in China, Slow down in emerging countries Lower demand concern in Japan Market from consumption tax increase JTEKT Corporation
Slide 17: 2-2) Forecasts for Fiscal 2014
17 2-2) Forecasts for Fiscal 2014 JTEKT Corporation
Slide 18: 2-3) Operating Income Change Analysis
18 2-3) Operating Income Change Analysis （100millionyen） Operating Income +47 Negative Impact △145 Positive Impact ＋192 ＋61 630 582 ＋47 △40 △85 △20 ＋85 Excludes Exchange Rate Impact FY2013 FY2014 Income Rise in Material Price Fall in Selling Sales Growth Improvement Price Level Rise in Raw Exchange
Slide 19: 2-4) Net Sales by Product
19 2-4) Net Sales by Product （100million yen） JTEKT Corporation
Slide 20: 2-5) Net Sales by Region
20 2-5) Net Sales by Region （100million yen） JTEKT Corporation
Slide 21: Agenda: VISION・Mid-Term Management Plan
21 1. Results for Fiscal 2013 2. Forecasts for Fiscal 2014 3. VISION・Mid-Term Management Plan JTEKT Corporation
Slide 22: 3-1) VISION and the Mid-Term Management Plan
In drawing up the VISION 22 3-1) and the Mid-Term Management Plan JTEKT GROUP VISION JTEKT VISION 2015 Mid-Term Management Plan ～FY2013 From FY2014 on JTEKT Corporation
Slide 23: 3-2) JTEKT GROUP VISION
23 3-2) JTEKT GROUP VISION JTEKT Corporation
Slide 24: 3-3) Outline of the Plan – Aim
24 3-3) Outline of the Plan – Aim (1) Always consider what should be done with eyes fixed on a point for 5 year The main battlefield ・ Conduct business aggressively with anticipation of future change. ・ Consider the priority of necessary action and resources to achieve the targets in a mid-term, and
Slide 25: 3-3) Outline of the Plan - Position
25 3-3) Outline of the Plan - Position 【JTEKT GROUP VISION】 The expected state we aim to commonly (universal things) Corporate Philosophy Corporate Activities Standards 【 Mid-Term Management Plan】 Detail strategies, measures and target figures to fulfill the VISION JTEKT Employee Conduct Guidelines
Slide 26: 3-3) Outline of the Plan - Structure
26 3-3) Outline of the Plan - Structure Establish business and profit foundation robust to environmental changes by enhancing group business tie-up for the realization of JTEKT Group Vision Automotive Bearings Machine Tools & Components business Mechatronics business strategies business strategies s
Slide 27: 3-4) Business Strategies – Automotive Components Business
27 3-4) Business Strategies – Automotive Components Business Objective Become the all-time global leading supplier with the spirit of “No.1”&“ONLY ONE”, through delivering value to customers Target 製品別方針of FY2018 Steering System Maintain the top global share on automotive steering system Steering Dr
Slide 28: 3-4) Business Strategies – Automotive Components Business: Steering System
28 3-4) Business Strategies – Automotive Components Business Steering System Steering Target for FY2018 Maintain the top global share on automotive steering system ・Product power reinforcement (functional safety, small & light, power saving, automatic driving & personal commuter applicable) Product
Slide 29: 3-4) Business Strategies – Automotive Components Business: Drive Line
29 3-4) Business Strategies – Automotive Components Business Drive Line Drive Line Target for FY2018 Be a leading company on torque control devices (Establishment of top share position in the 4WD business) ・Downsizing/Price reduction/High functionalization Product Power ・Unitization/Modularization (
Slide 30: 3-5) Business Strategies - Bearings
30 3-5) Business Strategies - Bearings Ideal Situation Constitutional Improvement and Following with Global Market Growth Policy according 製品別方針 to products Markets 製品別方針 of focus (Industrial machine field) TRB Maintain top position (Tapered roller bearings) Pursue even lower friction Steel Expand s
Slide 31: 3-5) Business Strategies – Bearings
31 3-5) Business Strategies – Bearings Ideal Situation Constitutional Improvement and Following with Global Market Growth ・Restructuring of Kokubu Plant (Become the high-yield mother plant of Restructuring of industrial machinery) domestic and ・Restructuring of foreign plants (Structural reform in e
Slide 32: 3-6) Business Strategies - Machine Tools & Mechatronics
32 3-6) Business Strategies - Machine Tools & Mechatronics Ideal Situation True total production system supplier full of customer reliance Policy according to products 製品別方針 grinder No.1 share in the world by superior precision cutting/ Precision & processing technology for resistant material machin
Slide 33: 3-6) Business Strategies - Machine Tools & Mechatronics
33 3-6) Business Strategies - Machine Tools & Mechatronics Target for FY 2018 Contribution to customers’ production by proposing and supplying products for meeting customer needs ・Narrow down targets by strengthening marketing Enforce of sales ・Strengthen sales engineering and reorganize the sales n
Slide 34: 3-7) Strengthening of Production Engineering
34 3-7) Strengthening of Production Engineering Main Activities ■ Reduction of investment cost units ・Develop a global standard line compatible with the characteristics of each region →50% reduction in investment cost units by 2018 through net ratio improvement and review of optimum specs ■ Developm
Slide 35: 3-8) Activities for Becoming a Truly Global Company
35 3-8) Activities for Becoming a Truly Global Company Main Activities ■ Global training of successors ・Formulate a Global Succession Plan ・Make inventory of global posts and global human resources ・Create a succession committee at every region and develop globally ■ Training system organization ・Im
Slide 36: 3-9) Improve Financials
36 3-9) Improve Financials Strengthen earning power Strengthening Financial base ・Ensure a 7.5% operating ・Reduce debt-bearing income ratio through liabilities to 100 trillion yen business axis activities by speeding up capital turnover and creating cash Investments towards growth Extended reproduct
Slide 37: 3-10) Figure Targets
37 3-10) Figure Targets FY2013 Result FY2018 Target Operating Income Ratio 4.6% 7.5% Capital Expenditure 76.4 billion yen 75 billion yen Depreciation 53 billion yen 60 billion yen R & D percentage 3.2% 4.0% ROA 2.2% 4.5% Exchange Rate 100 yen/USD 90 yen/USD Assumption 134 yen/EUR 115 yen/EUR JTEKT C