Fujikura Ltd · TSE:5803
Fujikura — H1 FY2017 Earnings Presentation
25 slides from Fujikura's earnings presentation, Oct 27, 2017
Slide 1: Progress of 2020 Mid-term Business Plan: Overview of 1H FY2017 and Actions in 2H
Progress of 2020 Mid-term Business Plan Overview of 1H FY2017 and Actions in 2H "Let’s transform ourselves, and bridge to the future! 2020 Mid-term" Fujikura Ltd. Masahiko Ito, President & CEO October 27, 2017
Slide 2: Maintain and strengthen earning power; FY2020 goals
We will continue to maintain and strengthen "earning power". FY2017 is a true starting year . Goals to be achieved in FY2020 • Ratio of operating income to net sales: 7.0% or higher • Net sales: 900 billion yen • ROE: 10% or higher • D/E ratio: 40:60 (0.66 times) 1
Slide 3: Contents
Contents 1. Review of 1H FY2017 Financial Results and FY2017 Forecasts 2. Progress of Key Measures of 2020 Business Plan and Their Progress 3. Research & Development Topics 4. Return to Shareholders 2
Slide 4: 1. Review of 1H FY2017 Financial Results and FY2017 Forecasts
1. Review of 1H FY2017 Financial Results and FY2017 Forecasts 3
Slide 5: 1H FY2017 Financial Results
(1) 1H FY2017 Financial Results （Unit：Yen in billion） FY2017 FY2016 FY2017 （Released on May 9) 1H 2H FY2016 1H 2H FY2017 1H FY2017 Forecasts Forecasts Net Sales 305.2 348.5 653.7 359.7 370.2 730.0 340.0 700.0 Operating Income 13.8 20.4 34.2 17.5 20.4 38.0 16.0 38.0 （単位：億円） Ratio of Operating Income
Slide 6: Review of 1H FY2017 and Evaluation
(2) Review of 1H FY2017 and Evaluation Evaluation of 1H FY2017 Maintained and strengthened "earning power" • Both net sales and operating income increased on a YoY basis. Ratio of operating income to net sales was 4.9% + 0.4% on a YoY basis and +0.2% compared with the original plan • Increased n
Slide 7: Regarding Automotive Products Company
(3) Regarding Automotive Products Company Responding to unexpected deterioration in profitability Analysis of deteriorated profitability • Labor has been mobilized in Eastern European countries, and the number of turn over rapidly increased due to the migrant workers to the former Western Bloc c
Slide 8: FY2017 forecasts and actions in 2H
(4) FY2017 forecasts and actions in 2H Continue to maintain and strengthen "earning power" Ratio of operating income to net sales is forecasted to be 5.2% which is in line with that of FY2016. FY 2017 forecasts for operating income, ordinary income and net income attributable to owners of pare
Slide 9: Progress of 2020 Mid-term Plan: Operating Income Ratio
(5) Progress of 2020 Mid-term Business Plan Ratio of Operating Income to Net Sales Ratio of operating income to net sales 8.0% FY2017 Forecasts 7.0% 7.0% 2020 Mid-term Business Plan 6.0% 5.2% 5.2% 5.0% 4.8% 4.0% 4.2% 3.0% FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 8
Slide 10: 2. Progress of Key Measures of 2020 Business Plan
2. Progress of Key Measures of 2020 Business Plan and their progress 9
Slide 11: Key measures of 2020 Mid-term Business Plan and their progress
(1) Key measures of 2020 Mid-term Business Plan and their progress As a company creating customer value, we will become a promising company with a future with "strong earning power" and "power of strong invention"! Developing deeper Developing deeper ties with strategic i) Accelerate developing tie
Slide 12: Developing deeper ties with strategic customers: SWR/WTC
(2) Developing deeper ties with strategic customers Accelerate developing ties with customers by providing strategic products (Spider Web Ribbon/Wrapping Tube Cable) ○ Response to potential and apparent needs in hyper-scale data centers . ⇒ Securing the further data bandwidth in limited space ⇒ Th
Slide 13: Developing deeper ties with strategic customers: electronics business
(3) Developing deeper ties with strategic customers Win trust of strategic customers in electronics business to deepen the ties to be the best partner ○ Materialize customers' needs with close relationship from the initial stage of development of new model ⇒Acquire additional value with the view f
Slide 14: Accelerate new business creation: cable business field
(4)Accelerate new business creation Cable business field ○Find out potential needs from conventional business ○Contribution to "diagnosis service" ○Safety zone: Example of diagnosis equipment for risks of troubles of old cables ・Higher conscious of preparation for risks including suspension of ope
Slide 15: Accelerate new business creation: WABE
(5)Accelerate new business creation Actions for "WABE"*, high-density and ultra small device embedded printed-wiring board Provide the most adequate solution for the field that small and thin electric circuits are highly required including wearable and medical/healthcare equipment. WABE Already s
Slide 16: Open innovation
(6) Open innovation Concluded an agreement with the Plug and Play Japan as a founder partner Promote open innovation to create new value and accelerate reinvention Actively take part in various eco-systems and enhance activities in four market domains（Advanced Communication, Energy & Industry,
Slide 17: Management reform: governance reform
(7) Management reform Management reform Governance reform ○ Transited to a company with an audit and supervisory committee →Speed-up decision-making and strengthen audit and supervisory function →Resolved the transition at the shareholders meeting on June 29, 2017 Reform of the board of director
Slide 18: Management reform: outline of new governance system
(8) Management reform Outline of new governance system 17
Slide 19: 3. Research & Development Topics
3. Research & Development Topics 18
Slide 20: R&D Topics: single-mode fiber laser
(1) Research & Development Topics Develop a single-mode fiber laser Contribute to the creation of new fields of laser processing Response to the growing demand for fiber lasers with high output power →Realized the world strongest output power of 5kW with single stage method*1 and long delivery ca
Slide 21: R&D Topics: solution for IoT with DSC
(2) Research & Development Topics Developed solution to respond IoT DSC ○Contributed to solving IoT issues with Dye-sensitized Solar Cell (DSC) and wireless sensor system Power management circuit ・IoT (Sensing) society = Use huge amount of sensors on all sides Issue of IoT terminal Cloud server
Slide 22: 4. Return to Shareholders
4. Return to Shareholders F Fujikura a
Slide 23: Profit Return Basic Policy
(1) Profit Return Basic Policy Executing well-balanced profit allocation Concentrated investment to growing businesses (next growth) Improvement of financial strength (capital ratio, D/E ratio） Flexible share buyback Improvement of per-share profit Keep stable in dividend 2020 Mid-term basic
Slide 24: Becoming a promising company with strong earning power
As a company creating customer value, we will become a promising company with a future with "strong earning power" and "power of strong reinvention"! 23
Slide 25: Contact: Investor Relations Group
Special Notes: Statements in this presentation that relate to future results and events (including statements regarding Fujikura’s revenue and earnings guidance) are based on Fujikura’s current expectations. Actual results in future periods may differ materially from those currently expected because