Unipres Corporation · TSE:5949
Unipres — Q1 FY2020 Earnings Presentation
39 slides from Unipres's earnings presentation, 2020
Slide 1: FY2020 1st Quarter Financial Results
FY2020 1st Quarter Financial Results
Slide 2: FY2020 1Q Financial Results, Forecast, Mid-Term Business Activities
FY2020 1Q Financial Results Forecast of FY2020 Mid-Term Business Activities Copyright© UNIPRES CORPORATION, All Rights Reserved. 2
Slide 3: FY2020 1Q Financial Results
FY2020 1Q Financial Results Copyright© UNIPRES CORPORATION, All Rights Reserved. 3
Slide 4: Key Highlights for Q1, FY2020 (consolidated-basis)
Key Highlights for Q1, FY2020 (consolidated-basis) １. Net sales sharply decreased mainly due to the production cutbacks and shutdown of the operations associated with customers' reduced production that were caused by the global spread of corona virus (COVID-19) infection in addition to Forex impact.
Slide 5: Summary of Q1, FY2020
Summary of Q1, FY2020 ※ Net sales decreased by 30.2 billion yen mainly due to the production cutbacks and shutdown of the operations associated with customers' reduced production that were caused by the global spread of corona virus (COVID-19) infection in addition to Forex impact. ※ Operating profi
Slide 6: Consolidated Sales by Product Group
Consolidated Sales by Product Group (billion yen) 1Q, FY2019 1Q, FY2020 Variance Variance % % % Sales Sales Car body press products 60.9 84.6% 35.7 85.4% -25.2 +0.8% Transmission products 9.8 13.6% 4.7 11.2% -5.1 -2.4% Plastic 0.8 1.1% 0.4 1.0% -0.4 -0.1% products Other 0.5 0.7% 1.0 2.4% +0.5 +1.7%
Slide 7: Consolidated Sales by Customer (Nissan Motor-related Products)
Consolidated Sales by Customer (Nissan Motor-related Products） ※ The composition ratio decreased by 9.3% mainly due to significant sales decrease of Nissan North America and Dongfeng Motor Company Limited. (billion yen) 1Q, FY2019 1Q, FY2020 Variance Sales % Sales % Nissan Motor-related products Sub
Slide 8: Consolidated Sales by Customer (Other customers)
Consolidated Sales by Customer (Other customers) ※ The composition ratio rose by 9.3% as a result of sales increase of Renault S.A.S. and Groupe PSA by making UM Corporation, SAS. a subsidiary. 1Q, FY2019 1Q, FY2020 (billion yen) Variance Sales % Sales % Other customers Sub-total 11.7 16.2% 10.6 25.
Slide 9: Operating Profit Variance Analysis
Operating Profit Variance Analysis (billion yen) 5 ※Production reinforcement:0 ※Cost saving:0 1.2 0 -9.0 -3.2 -5 -9.1 -0.5 0.4 -1.3 0.1 0.1 -0.1 -10 Others & model mix etc. Volume fluctuation parts new car model Initial cost for FY2020 SG&A FY2019 amortization Depreciation/ adjustment Consolidation
Slide 10: Sales/Operating Profit by Region (Japan)
Sales/Operating Profit by Region (Japan) ※ Net sales dropped by 45.6% mainly due to customers’ reduced production caused by the spread of corona virus. ※ Operating profit was lost by 6.7 billion yen because of the increase of new model parts launching cost, etc. （億円） (billion yen) Net sales （億円） (bi
Slide 11: Sales/Operating Profit by Region (The Americas)
Sales/Operating Profit by Region (The Americas) ※ Net sales dropped by 44.1% because of customers’ reduced production and shutdown of the customers' operations in response to the stay-at-home order and movement control order that had been caused by the spread of corona virus. ※ Operating profit was
Slide 12: Sales/Operating Profit by Region (Europe)
Sales/Operating Profit by Region (Europe) ※ Despite the effect of making UM Corporation, SAS. a consolidated subsidiary, net sales was at the same level compared to the previous year due to customers' reduced production caused by the spread of corona virus in addition to Forex impact, etc. ※ Operati
Slide 13: Sales/Operating Profit by Region (Asia)
Sales/Operating Profit by Region (Asia) ※ Net sales dropped by 52.9% because of customers’ reduced production and shutdown of the customers' operations in response to the stay-at-home order and movement control order that had been caused by the spread of corona virus. ※ Operating profit was lost by
Slide 14: Capital Investment
Capital Investment (billion yen) 40 37.9 国内実績business result Domestic Annual 海外実績business result Overseas plan 31.2 (32.0) 30 14.2 23.1 11.8 20 9.1 23.7 10 19.4 6.5 14.0 3.4 3.1 0 FY2017 FY2018 FY2019 1Q, FY2020 Copyright© UNIPRES CORPORATION, All Rights Reserved. 14
Slide 15: Capital Investment & Depreciation/Amortization
Capital Investment & Depreciation/Amortization (billion yen) 40 Capital investment Annual Depreciation/amortization plan (32.0) 30 Annual plan (21.5) 20 37.9 31.2 23.1 10 18.5 19.5 18.3 6.5 5.0 0 FY2017 FY2018 FY2019 1Q, FY2020 Copyright© UNIPRES CORPORATION, All Rights Reserved. 15
Slide 16: Cash Flows
Cash Flows (billion yen) 15 営業活動キャッシュ・フ Cash flow from operating activities ロー Cash flow from investing activities 投資活動キャッシュ・フ Free cash flow ロー 10 5 1.9 9.3 8.3 6.3 4.4 4.7 6.0 5.8 4.2 1.9 0 -1.3 -2.5 -7.4 -5 -9.7 -13.9 -10 -15 FY2016 FY2017 FY2018 FY2019 FY2020 1Q 1Q 1Q 1Q 1Q Copyright© UNIPRES CO
Slide 17: Interest-bearing Debt & Net Interest-bearing Debt Balance
Interest-bearing Debt & Net Interest-bearing Debt Balance ※ Interest-bearing debts increased by 13.9 billion yen compared with the end-March, 2020. ※ Net interest-bearing debts including cash and deposits was 19 billion yen. (billion yen) 70 Long-term loans payable Short-term loans payable Interest-
Slide 18: Forecast of FY2020
Forecast of FY2020 Copyright© UNIPRES CORPORATION, All Rights Reserved. 18
Slide 19: 2020 Consolidated Business Forecast Highlights
2020 Consolidated Business Forecast Highlights 1. Net sales forecast to decline mainly due to customers’ production decreased and Forex impact. 2. Operating profit forecast to decrease due to sales decline. 3. Large capital investment is projected due to investment of model change including hot stam
Slide 20: Impact of COVID-19 Pandemic on Business Activities
Impact of COVID-19 Pandemic on Business Activities ※ While the Unipres group have been impacted by COVID-19 including a sharp decline in production units during a certain period in 2020, we except to recover in the second half of FY2020. ＜Variance ratio of production units (year on year）＞ 1Q, FY2020
Slide 21: Consolidated Business Forecast for FY2020
Consolidated Business Forecast for FY2020 Transition in business results 売 Net sales (billion yen) 40 400 327.7 Net sales 上 Operating profit (billion yen) 295.6 30 300 高 238.0 （ Operating profit 億 営 20 200 円 業 ） 利 益 10 20.1 100 （ 億 3.3 0 0 円 ） -7.5 -100 -10 -100 FY2018 FY2019（A） FY2020 forecast（B） （
Slide 22: Consolidated Sales by Product Group
Consolidated Sales by Product Group (billion yen) FY2019 FY2020 Variance Variance % % % Sales Sales Car body press products 249.8 84.5% 200.7 84.3% -49.1 -0.2% Transmission products 40.3 13.6% 32.0 13.4% -8.3 -0.2% Plastic 3.7 1.3% 3.2 1.4% -0.5 +0.1% products Other 1.8 0.6% 2.1 0.9% +0.3 +0.3% Tota
Slide 23: Forecast of Operating Profit Variance Analysis
Forecast of Operating Profit Variance Analysis (billion yen) 5 5 5 ※Production reinforcement:0 3.3 3.3 0 -7.4 -14.5 -7.5 -7.5 -5 -5 -0.9 -0.9 -0.4 -0.4 2.8 2.8 -10 1.5 1.5 1.2 -2.0 -2.0 1.5 -15 -15 Others Cost saving /amortization Depreciation SG&A parts new car model Initial cost for Forex FY2019 F
Slide 24: Activities for Improvement of Profit
Activities for Improvement of Profit ※ Taking measures to improve profit 【Transition in net sales/operating profit】 400.0 25.0250 ＜Activities for improvement Net sales 1st half 2nd half Operating profit (billion yen) Net sales (billion yen) Operating profit 1st half 2nd half of profit＞ 20.0200 300.0
Slide 25: Sales/Operating Profit by Region (Japan)
Sales/Operating Profit by Region (Japan) ※ Net sales is expected to decrease because of production cut, etc. ※ Operating profit is expected to be lower due to the payment of price adjustment for transfer pricing taxation in addition to production cut by customer. (billion yen) Net sales (billion yen
Slide 26: Sales/Operating Profit by Region (the Americas)
Sales/Operating Profit by Region (the Americas) ※ Net sales is expected to drop due to production cut and Forex impact, etc. ※ Despite the effect of the increase of price adjustment for transfer pricing taxation, operating profit is expected to be lower due to sales decrease. (billion yen) Net sales
Slide 27: Sales/Operating Profit by Region (Europe)
Sales/Operating Profit by Region (Europe) ※ Net sales is expected to drop due to production cut and Forex impact, etc. ※ Operating profit is expected to be lower because of sales decrease. (billion yen) Net sales (billion yen) Operating profit 40 2 1 1.0 0 20 -0.9 36.7 35.2 -1 23.2 -2.9 -2 0 -3 FY20
Slide 28: Sales/Operating Profit by Region (Asia)
Sales/Operating Profit by Region (Asia) ※ Net sales is expected to drop because of production cut by customer and Forex impact, etc. ※ Operating profit is expected to be lower because of sales decrease. (billion yen) Net sales (billion yen) Operating profit 100 10 50 5 92.5 83.3 8.4 69.4 7.0 5.6 0 0
Slide 29: Capital investment & Depreciation/Amortization plan
Capital investment & Depreciation /Amortization plan ※ Although a high level capital investment will continue due to investment of model change including hot stamping, capital investment forecast to be lower in order to improve profit. ※ Depreciation / amortization is expected to rise by 2 billion y
Slide 30: Dividend Forecast
Dividend Forecast ・Dividends at end of 2nd quarter ・・・As the business results for the second quarter of FY2020 ending March 31, 2021 is forecast to be significantly smaller, no interim dividend will be paid. ・Dividends at year end・・・While the year end dividend remains undetermined at this point, we
Slide 31: Financial Base and Capital Raising
Financial Base and Capital Raising Financial base is still at a sound level and capital raising is also not an issue 【Financial base】 March 2019 June 2020 Interest-bearing debts（billion yen） 13.1 60.5 Cash and deposits（billion yen） 31.6 21.1 Net interest-bearing debts （billion yen） - 39.4 Equity rat
Slide 32: Mid-Term Business Activities
Mid-Term Business Activities
Slide 33: Nissan Global Volume and Sales of Unipres
Nissan Global Volume and Sales of Unipres Nissan projects to recover volume of FY2023 to the almost same level of FY2015 400.0 5,770 6,000 5,626 ●Nissan global volume Nissan global volume thousand units 5,423 5,516 ■Sales of Unipres 5,400 Sales of Unipres billion yen 350.0 4,930 5,000 325.4 330.8 32
Slide 34: Sales of Unipres by Customer
Sales of Unipres by Customer As a result of sales expansion, we expect to expand sales with focus on Renault, Mitsubishi and Aisin in FY2023. （billion yen） 325.4 billion yen 295.6 billion yen Others 3,000 300 13% Approx.20% Main customer for sales 238.0 billion yen expansion 18% ・Renault 17% ・Mitsub
Slide 35: Capital investment & Depreciation/Amortization
Capital investment & Depreciation /Amortization Model change investment including hot stamping will get through a certain phase in FY2021 and decrease gradually after reaching a peak in FY2019. ■ Capital investment ■ Depreciation /Amortization （billion yen） 40.0 37.9 31.2 32.0 30.0 23.1 21.5 18.5 19
Slide 36: Critical Management Challenges and Initiatives
4 Critical Management Challenges and Initiatives 1. Utilizing and 3. Top level 2. Promotion of technology competitiveness in the strengthening global development industry production foundation • Expansion of business • Development of New • Enhancement of Cost • Expanding global sales (Renault, produ
Slide 37: Copyright© UNIPRES CORPORATION, All Rights Reserved.
Copyright© UNIPRES CORPORATION, All Rights Reserved. 37
Slide 38: Reference
Exchange rate Reference （yen） 1Q, FY2019 1Q, FY2020 Preconditions of Average for the Average for the FY2020 forecast period term end period term end US $ 109.66 107.75 107.38 107.74 105.60 STG ￡ 145.19 144.99 139.16 133.46 132.00 EURO 125.28 124.56 120.09 119.65 119.70 MEX $ 5.75 5.74 5.33 4.57 4.85
Slide 39: Precautions for treatment of material
Precautions for treatment of material The future outlook of the Company mentioned in this presentation material was prepared based on information available to the Company that point in time. This is absolutely an expectation about the future at this point in time, which contains risks and uncertain