JTEKT Corporation · TSE:6473
JTEKT — FY2009 Earnings Presentation
28 slides from JTEKT's earnings presentation, May 17, 2010
Slide 1: Presentation of financial results for the fiscal year ending March 2010
1 Presentation of financial results for the fiscal year ending March 2010 May 17, 2010 JTEKT Corporation JTEKT Corporation
Slide 2: Agenda
2 1. Results for the fiscal year ending March 2010 2.Business plan for the fiscal year ending March 2011 3. Global Business strategy 4. Summary JTEKT Corporation
Slide 3: 1-1) Financial data ①
1-1) Financial data ① 3 （billions of yen） FY2008 FY2009 Comparison Net sales 1,017 769.6 75.7% Operating income 22.3 0.4 1.9% Ordinary income 11.1 -- 0.2 ― Net income ー11.9 -- 19.4 ― JTEKT Corporation
Slide 4: 1-1) Financial data ① supplement: extraordinary losses
1-1) Financial data ① ＜supplement＞ 4 Extraordinary losses in FY2009 （billions of yen） Fixed asset retirement loss 0.8 Impairment loss 1.3 Provision for product arranties 5.8 Business restructuring expenses 9.5 Other 1.7 Total 19.1 JTEKT Corporation
Slide 5: 1-2) Financial data ②
1-2) Financial data ② 5 （billions of yen） FY2008 FY2009 Comparison Inventory assets 127.7 124.4 97.4% Interest-bearing debt 216.2 237.3 109.8% Capital expenditures 51.1 25.2 49.4% Depreciation 55.8 50 89.6% JTEKT Corporation
Slide 6: 1-3) Sales by product type
6 1-3) Sales by product type Mechanical component (billions of yen) 300 830.3 △18.3% 678.4 239.6 240.0 208.8 197.3 200 183.8 164.8 141.9 132.5 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2008 FY2009 Machine tools,etc 100 186.7 △51.1% 91.2 59.3 46.9 50 42.4 38.1 27.1 21.8 20.7 21.6 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY20
Slide 7: 1-4) Sales by region
7 1-4) Sales by region Japan Europe (billions of yen) 200 539.2 △18.9% 437.1 100 200.9 △32.9% 134.7 161.0 148.4 134.4 129.2 118.2 59.5 61.4 104.3 95.4 49.0 100 85.4 50 35.0 34.3 36.5 31.0 28.9 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2008 FY2009 FY2008 FY2009 North America Asia/Oceania
Slide 8: 1-5) Operating income by product group
8 1-5) Operating income by product group Mechanical components 売上高(左軸) Sales (left axis) Operating営業利益(右軸) profit (right axis) 営業利益率 Operating profit ratio (billions of yen) 5.8% 4.6% 3.1% 5.7% △0.2% △5.0% △0.1% 300 △9.7% 60 239.6 240.0 208.8 197.3 164.8 183.8 200 40 141.9 132.5 100 13.9 11.0 11.3 2
Slide 9: 1-6) Operating income by region
9 1-6) Operating income by region Japan Sales (left axis) Operating profit (right axis) Europe (billions of yen) Operating profit ratio 5.1% 6.5% 4.3% △1.7% △10.0% △3.3% 1.1% 2.3% 2.6% 0.4% △4.3% △2.0% 0.1% 200 40 100 20 161.0 148.4 △0.9% 134.4 △12.3% 61.4 118.2 129.2 59.5 △11.8% 95.4 104.3 49.0 100
Slide 10: Agenda
10 1. Results for the fiscal year ending March 2010 2.Business plan for the fiscal year ending March 2011 3. Global Business strategy 4. Summary JTEKT Corporation
Slide 11: 2-1) Reflecting on FY 2009 Activities
2-1) Reflecting on FY 2009 Activities 11 FY 2009 Revenue Base Restructuring Activities ◇ Reduction of fixed costs in response to ・Line mergers, reorganization of bases production scale (Closure of steering plants in NA and Europe) ・ Reorganization of global production ・15% reduction of global workfo
Slide 12: 2-2) FY 2010 Priority Measures
2-2) FY 2010 Priority Measures 12 FY 2010 Slogan Evolution for a secure growth path! ～ Achievement of a V-shaped recovery～ Priority issues Priority measures ① Revenue base built on an exchange standard ① Expansion of local procurement, promotion of assuming appreciation of the yen adopting local mat
Slide 13: 2-3) Financial data
2-3) Financial data 13 Exchange assumptions US$ 90.00 （billions of yen） Euro 125.00 FY2009 FY2010 Comparison Net sales 769.6 870 113.0% Operating income 0.4 30 ― Ordinary income -- 0.2 29 ― Net income -- 19.4 12 ― Capital expenditures 25.2 28 110.9% Depreciation 50 45 90.0% JTEKT Corporation
Slide 14: 2-4) Sales by product type
14 2-4) Sales by product type ※Parentheses show comparisons with previous FY 1st half 2nd half (billions of yen) 0 200 400 600 800 Mechanical component FY2009 297.3 381.1 678.4 FY2010 372.5 386.5 759.0 (111.9%) M a c h i n e tools,etc FY2009 42.5 48.7 91.2 FY2010 52.5 58.5 111.0 (121.7%) 0 200 400 6
Slide 15: 2-5) Sales by region
15 2-5) Sales by region ※Parentheses show comparisons with previous FY 1st half 2nd half (billions of yen) 0 100 200 300 400 500 J a p a n FY2009 189.7 247.4 437.1 FY2010 230.0 240.0 470.0 (107.5%) 0 100 E u r o p e Asia/Oceania FY2009 63.9 70.8 134.7 FY2009 38.5 52.4 90.9 FY2010 74.0 76.0 150.0 (11
Slide 16: Agenda
16 1. Results for the fiscal year ending March 2010 2.Business plan for the fiscal year ending March 2011 3. Global Business strategy 4. Summary JTEKT Corporation
Slide 17: 3-1) Market Trends
3-1) Market Trends 17 Worldwide vehicle output Machine tool orders Japan NA W. Europe China India SA Other Eco-friendly 120 € Production (millions) Eco-friendly ratio30 (%) Orders (billions of yen) Domestic Overseas demand demand 100 25 1,594 89 1,600 1,475 80 74 20 71 67 52% 1,200 60 50% 969 60 52%
Slide 18: 3-2) Global Business Strategies
3-2) Global Business Strategies 18 External environment Global business strategies 1. Strengthen business in the ◇ Increased demand in industrial machinery and environment/infrastructure fields commercial fields ◇ Emerging markets to drive 2. Strengthen business in economic growth emerging markets 3
Slide 19: 3-3) Strengthen Business in Industrial Machinery and Commercial Fields: Bearings
3-3) Strengthen Business in the [Industrial Machinery and Commercial 19 Fields] ① Bearings Strengthen Sales of Bearings for Industrial Machinery and Commercial Fields Industrial machinery and commercial fields <Target> sales target ◆ Fields: Steel、Wind energy, Machine tools, Railway carriages, Comme
Slide 20: 3-3) Strengthen Business in Industrial Machinery and Commercial Fields: Machine Tools
3-3) Strengthen Business in the [Industrial Machinery and Commercial 20 Field] ② Machine Tools Strengthen technological development Complex machining Priority areas Aircraft Strengthen core High accuracy machining technology Construction/agriculture Machining/set-up time Energy reduction Reallocate
Slide 21: 3-4) Business Strategies for China
3-4) Strengthen Business in [Emerging Markets] 21 ① Business Strategies for China Aim to acquire top share in each business Business area Customer area Target 100 mill yen Sales target Steering 1,200 Automotive 1,000 Local manufacturers Driveline 800 Commercial machinery 600 Industrial Bearings 400
Slide 22: 3-4) Enrich Chinese Technical Centers
3-4) Strengthen Business in [Emerging Markets] 22 ① Business Strategies for China Enrich Chinese Technical Centers ◇ Swift development of low-cost products suiting customer needs ◇ Enrich prototypes, evaluation and design, rapidly respond to Items for strengthening customers ◇ Promote JTEKT engineer
Slide 23: 3-4) Emerging Markets: India, South America
3-4) Strengthen Business in [Emerging Markets] 23 ② India. South America India S. America Sales target Sales target 09 10 11 12 (FY) 15 09 10 11 12 (FY) 15 Strengthen sales structure (bearings, machine tools) Expand and enrich sales bases, distribution network ・ Expand and enrich local distribution
Slide 24: 3-5) Product Development: low-cost parts for regional needs
3-5) Strengthen [Product Development] to rapidly respond to 24 demand trends ① ① Example of a low-cost part activity responding to regional needs Under a concept of “Meticulous Design” and “Simplistic Design”, we have established optimal specifications Low-cost C-EPS Bearings – Hub units Cost reduct
Slide 25: 3-5) Activities for popularizing eco-friendly vehicles
3-5) Strengthen [Product Development] to rapidly respond to 25 demand trends ② ② Activities for popularizing eco-friendly vehicles (HV/PHV/EV) Direction of engineering and product development for eco-friendly vehicles Strengthen ◆ Innovation, intensification of compact, component lightweight, part p
Slide 26: 3-6) Needle Bearing Business overview
3-6) Synergism of the [Needle Bearing Business] 26 ① Business overview Outline of the needle bearing business Overseas bases : 12 production bases 2009年売上高 ： 408百万ﾄﾞﾙ (NA 5/ Europe 6/ China 1) 3 development bases (USA 1/Europe 2) Employees : 3,242 (end of 2009) Sales : 4.08 million USD (2009) Needle
Slide 27: 3-6) Effects of Needle Bearing Business synergism
3-6) Effects of [Needle Bearing Business] synergism 27 ② Synergy Synergism effects Secure the world No. 1 position for automotive bearings ・Expand sales to European/American customers (bearings + steering/driveline units/machine tools) ・Expand sales to Japanese customers (strengthen the drive trai
Slide 28: 4. Summary
28 4. Summary Toward strong Implementation of business strategies growth in the for future growth new era Low-cost, Emerging- Industrial compact, Synergism of nation machinery lightweight the Needle markets markets technology Bearing Business development Achievement of Further strengthening of a V-s