Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — H1 FY2016/17 Earnings Presentation
42 slides from Johnson Electric's earnings presentation, January 2017
Slide 1: Johnson Electric Holdings Limited FY2016/17 Interim Results
JOHNSON ELECTRIC HOLDINGS LIMITED FY2016/17 Interim Results January 2017
Slide 2: Agenda
Group Overview Key Financial Highlights Operational Results Acquired Businesses Strategy & Outlook Appendix FY2016/17 December Quarter Page 2
Slide 3: Johnson Electric Group Overview
JOHNSON ELECTRIC GROUP OVERVIEW Johnson Electric is the global leader in custom designed motion subsystems, including motors, solenoids, switches and flexible interconnects. We serve a broad range of industry segments including automotive, building automation and security, business machines, securit
Slide 4: Company Vision and Brand Promise
COMPANY VISION AND BRAND PROMISE Company Vision To be the world's definitive provider of innovative and reliable motion systems Brand Promise “Technology Leadership” “The Safe Choice” Page 4
Slide 5: Key Milestones 1959 – 2016
KEY MILESTONES 1959 – 2016 SALES 2000-2016: Going Global US$2.2bn US$2.1bn US$1.7bn 1982-1999: Leveraging China to supply the world US$1.1bn Early Years: Hong Kong US$677m family business US$251m US$126m US$54m US$16m Founded AC Motor Opened Listed on Acquired Acquired Build Acquired by Wang busines
Slide 6: APG Applications
APG APPLICATIONS Johnson Electric provides innovative solutions to over 70 different subsystems and component applications inside the latest passenger vehicles Page 6
Slide 7: IPG Applications
IPG APPLICATIONS Medical Devices Smart Meters Circuit Breakers Lawn & Garden Power Tools Personal Care Power Sports HVAC Building Automation Business Machines Digital Security Home Technologies Food & Beverages Industrial Equipment Special Vehicles Optronics Page 7
Slide 8: Highlights
HIGHLIGHTS Group sales US$1,367 million – up 34% compared to the first half of the prior financial year. Excluding the impact of acquisitions and foreign exchange rate changes, sales increased by 6% EBITDA as reported increased 38% to US$225 million or 16.5% of sales (16.0% in prior year) Operating
Slide 9: Agenda
Group Overview Key Financial Highlights Operational Results Acquired Businesses Strategy & Outlook Appendix FY2016/17 December Quarter Page 9
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS First half of First half of US$ million FY2016/17 1 FY2015/16 Sales 1,366.8 1,022.4 Gross profit 366.4 282.3 Gross margin 26.8% 27.6% Profit attributable to shareholders 120.8 97.8 Diluted earnings per share (US cents) 13.69 11.12 EBITDA (excluding nonrecurring item 2 ) 233.7 16
Slide 11: Agenda
Group Overview Key Financial Highlights Operational Results Acquired Businesses Strategy & Outlook Appendix FY2016/17 December Quarter Page 11
Slide 12: Profitability Review FY2016/17 vs. FY2015/16
PROFITABILITY REVIEW FY2016/17 vs. FY2015/16 Increase / First half of First half of (decrease) US$ million FY2016/17 1 FY2015/16 in profit Sales 1,366.8 1,022.4 344.4 Gross profit 366.4 282.3 84.1 Gross margin % 26.8% 27.6% Other income and gains, net 9.7 14.0 (4.3) Selling and administrative expens
Slide 13: Sales Movements 1H FY2016/17 vs. 1H FY2015/16
SALES MOVEMENTS 1H FY2016/17 vs. 1H FY2015/16 Note: Numbers do not add across due to the effect of rounding Page 13
Slide 14: Group Sales by Business - APG
GROUP SALES BY BUSINESS - APG Page 14
Slide 15: Group Sales by Business - IPG
GROUP SALES BY BUSINESS - IPG Page 15
Slide 16: Changes in Profit Attributable to Shareholders
CHANGES IN PROFIT ATTRIBUTABLE TO SHAREHOLDERS Page 16
Slide 17: Analysis of Cash Flow
ANALYSIS OF CASH FLOW First half of First half of 1 US$ million FY2016/17 FY2015/16 Change Operating profit 2 148.4 114.9 33.5 Depreciation and amortisation 76.9 48.3 28.6 EBITDA 225.3 163.2 62.1 Other non-cash items and adjustments 5.2 (2.4) 7.6 Working capital changes (39.6) (60.8) 21.2 Interest p
Slide 18: Other Cash Flows
OTHER CASH FLOWS First half of First half of US$ million FY2016/17 1 FY2015/16 Change Free cash flow from operations 32.5 16.6 15.9 Acquisitions and related costs (87.6) (2.0) (85.6) Acquisition of non-controlling interests (19.3) - (19.3) Dividends paid (37.7) (37.8) 0.1 Purchase of shares held for
Slide 19: Dividends
DIVIDENDS ► Interim dividend increased by 7% to 16 HK cents per share for FY2016/17 compared to 15 HK cents paid for FY2015/16 ► Dividend History FY2016/17 FY2015/16 FY2014/15 FY2013/14 FY2012/13 FY2011/12 FY2010/11 FY2009/10 Dividend per share (HK cents) Interim dividend 16.0 15.0 14.0 12.0 12.0 12
Slide 20: Working Capital & Capex
WORKING CAPITAL & CAPEX CAPEX to depreciation 2.1 2.2 2.4 Page 20
Slide 21: Agenda
Group Overview Key Financial Highlights Operational Results Acquired Businesses Strategy & Outlook Appendix FY2016/17 December Quarter Page 21
Slide 22: Products & Technologies
PRODUCTS & TECHNOLOGIES Product Types Diagrams Drivers (Static & Auto Static) Headlamp Manual levelers for halogen & automatic levelers for Xenon / LED lamps are Levelers (Dynamic) mandatory in EU / Japan / China / India (ADB Actuator) Adaptive lighting technology, an important Smart Actuators means
Slide 23: Stackpole Applications
STACKPOLE APPLICATIONS Pumps Powder Metals Key Engine Oil Transmission Oil Vacuum Carriers Clutch Gears & Products Pumps Pumps Pumps Components Sprockets One of the leading oil pump manufacturer in One of the leading powder metals manufacturer Market North America and Europe focusing in automotive i
Slide 24: Agenda
Group Overview Key Financial Highlights Operational Results Acquired Businesses Strategy & Outlook Appendix FY2016/17 December Quarter Page 24
Slide 25: Strategy and Outlook
STRATEGY AND OUTLOOK Develop and deliver technology solutions that meet the market’s need for both value-adding innovation and end-product cost savings APG — Achieves better fuel economy, lower emissions, and improved safety in cars. — New generation of hybrid and all electric vehicles needs a wide
Slide 26: Strategy and Outlook
STRATEGY AND OUTLOOK M&A Continue to pursue selective acquisitions to boost growth and strengthen our position in key target segments — Pursue a disciplined approach to acquisitions – exemplified by the recent acquisitions — Ensure purchase price is not excessive — Ensure prudent levels of financial
Slide 27: Trends in Automotive – Fuel Economy
TRENDS IN AUTOMOTIVE – FUEL ECONOMY Source: International Council on Clean Transportation - Sep 2015 http://www.theicct.org/global-pv-standards-chart-library Page 27
Slide 28: Trends in Automotive – Emissions
TRENDS IN AUTOMOTIVE – EMISSIONS Source: International Council on Clean Transportation - Sep 2015 http://www.theicct.org/global-pv-standards-chart-library Page 28
Slide 29: Continued Electrification - ICEs
CONTINUED ELECTRIFICATION - ICEs Engine Electrification Drivetrain Electrification Electronic Throttle Control EGR Valve DCT/AMT Electric Oil Pump Electric Valvetrain Electric Turbo AWD Disconnect Advanced Cooling System (ACS) Chassis Electrification Other Coolant Valve Cooling Fan Module Electric V
Slide 30: Continued Electrification - Hybrids
CONTINUED ELECTRIFICATION - HYBRIDs Engine Electrification Drivetrain Electrification Electronic Throttle Control EGR Valve DCT/AMT Electric Oil Pump Electric Valvetrain Electric Turbo AWD Disconnect Electric Parklock Advanced Cooling System (ACS) Chassis Electrification Other Coolant Valve Cooling
Slide 31: Continued Electrification – Battery EVs
CONTINUED ELECTRIFICATION – BATTERY EVs Electric Powertrain Drivetrain Electrification Traction Motor & Controller Gear Shifter Electric Oil Pump Electric Parklock Advanced Cooling System (ACS) Chassis Electrification Coolant Valve Battery Cooling Electric Vacuum Pump Electric Power Steering Electri
Slide 32: E-Pumps (for ICEs & Hybrids)
E-PUMPs (FOR ICEs & HYBRIDs) E-Pumps Platform Electric Oil Pump / Electronics Page 32
Slide 33: Growing Products - IPG
GROWING PRODUCTS - IPG Smart Meters [ Gas ] Highest intrinsic safety; Best resistance to impurities in gas supply; Compact; Cost effective. [ Electricity ] Highest resistance to shock and Longest service life; Fail safe; Assist electric utilities with increased efficiencies & reduced costs; Compact
Slide 34: Key Customers
KEY CUSTOMERS APG STACKPOLE IPG Page 34
Slide 35: Agenda
Group Overview Key Financial Highlights Operational Results Acquired Businesses Strategy & Outlook Appendix FY2016/17 December Quarter Page 35
Slide 36: Global Sales & Support Offices & Engineering Centers
GLOBAL SALES & SUPPORT OFFICES & ENGINEERING CENTERS Argentina Austria Belgium Brazil Canada China France Germany Hong Kong India Italy Israel Japan Korea Netherlands Singapore Switzerland Turkey UK USA Page 36
Slide 37: Worldwide Manufacturing
WORLDWIDE MANUFACTURING Argentina Brazil Canada China France Germany Hungary India Italy Israel Korea Mexico Poland Serbia Switzerland Turkey UK USA Page 37
Slide 38: Agenda
Group Overview Key Financial Highlights Operational Results Acquired Businesses Strategy & Outlook Appendix FY2016/17 December Quarter Page 38
Slide 39: Sales Changes for Apr-Dec FY2016/17 vs. FY2015/16
SALES CHANGES FOR APR-DEC FY2016/17 vs. FY2015/16 Note: Numbers do not add across due to the effect of rounding Page 39
Slide 40: Sales Growth by Region - APG
SALES GROWTH BY REGION - APG Sales Growth/(Decline) % Excluding Acquisitions and Currency Movements APG Asia Europe Americas TOTAL FY2016/17 Q3 26.2% (3.3%) 1.1% 7.9% Q2 31.2% (1.1%) 3.0% 9.9% Q1 6.3% 5.0% 3.0% 5.1% FY2015/16 Q4 5.3% 3.4% 8.1% 4.9% Q3 5.1% 4.5% 3.0% 4.4% Q2 (7.6%) 7.7% 5.2% 2.3% Q1
Slide 41: Sales Growth by Region - IPG
SALES GROWTH BY REGION - IPG Sales Growth/(Decline) % Excluding Currency Movements IPG Asia Europe Americas TOTAL FY2016/17 Q3 9.3% 20.9% (1.2%) 8.6% Q2 7.4% 15.8% (8.1%) 4.3% Q1 (5.6%) 16.3% (3.4%) 1.5% FY2015/16 Q4 (16.8%) 15.1% (2.5%) (3.7%) Q3 (17.2%) 6.0% (5.2%) (7.3%) Q2 (12.2%) 0.5% 1.4% (4.5
Slide 42: Disclaimer
DISCLAIMER This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric. Words such as “outlook”, “expects”, “anticipates”, “intends
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