28 slides from Shoei Co. Ltd. (7839)'s earnings presentation, Nov 22, 2018
Slide 1: SHOEI CO., LTD. Presentation
SHOEI CO., LTD. Presentation November 22, 2018
Slide 2: Regime for the 62nd Fiscal Year
Regime for the 62nd Fiscal Year ☆Sales volume increased 15,000 , units year y on year, y , mainlyy in Japan and North America. Unit prices of products increased as well. As a result, revenue was up １,507 million yen. ☆Foreign exchange rates (euro) at the term-end of subsidiaries (the end of June) we
Slide 3: The Fiscal Year Ended Sep. 30, 2018
The Fiscal Year Ended Sep. 30, 2018 （１） Consolidated Statements of Income (Millions of yen) Oct.16 O Oct.17 O Changes from -Sept.17 -Sept.18 Previous year(％) N e t S a l e s 15,641 15 641 17,148 17 148 +9 6 +9.6 O p e r a t i n g I n c o m e 3,461 3,734 +7.9 O r d i n a r y I n c o m e 3,497 3,772 +
Slide 4: Change of Sales and Net Income Indicator
（２） Change of Sales and Net Income Indicator Sales Net Income (Millions of yen) (Millions of yen) 18 000 18,000 4 000 4,000 15,000 3,000 12,000 9,000 2,000 6,000 1,000 3,000 0 0 The 57th The 58th The 59th The 60th The 61st The 62nd -3-
Slide 5: The Trend of Exchange Rate
（３）The trend of Exchange Rate EUR(MUFG Bank,Month end) 【YEN】 EUR(Average rate) 140.00 EUR(for Subsidiaries) USD(MUFG Bank,Month B k M h end) d) USD(Average rate) 135.00 USD(for Subsidiaries) 130 00 130.00 125.00 120.00 115.00 110.00 105 00 105.00 100.00 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-
Slide 6: New Products during the 62nd Fiscal Year
New Products during the 62nd Fiscal Year ＜NEOTEＣⅡ＞ NEOTEＣ System helmet with sun visor supporting intercom sold in unprecedented quantities thanks to the popularity of the innovative design and built- built-in intercom functionality. 【Europe】 Launching in January 2018 【North America】 Launching in Ma
Slide 7: Consolidated Balance Sheets
（４）Consolidated Balance Sheets (Millions of Yen) Sept.30,2017 Sept.30,2018 C a s h a n d D e p o s i t s 7,230 8,115 （ +884） A c c o u n t R e c e i v a b l e 1,794 2,179 （ +384） ） Merchandise and Finished Goods 1,198 1,396 （ +198） W o r k i n P r o c e s s 449 421 （ -28） Raw Materials and Parts 569
Slide 8: Financial Indicator
（５） Financial Indicator (Millions of yen) Ordinary income to net sales ratio ＲＯＡ ＲＯＥ 30.0% 25.0% 0% 22.9% 22.4% 22.0% 21.3% 20.7% 19.9% 20.0% 16 7% 16.7% 16 6% 16.6% 16 2% 16.2% 15.0% 10 0% 10.0% 5.0% 0.0% The 60th The 61st The 62nd -7-
Slide 9: Regime for the 63rd Fiscal Year
Regime for the 63rd Fiscal Year ☆Budgeting ☆ g g of helmet sales volume is 544,000 , units,, an increase of 22,000 , units compared to the 62nd term. We believe that this volume can be achieved on the strength of a promising new model, which we will touch on later later. ☆On the other hand, operatin
Slide 10: Forecasts for the Fiscal Year Ending Sep. 30, 2019
Forecasts for the Fiscal Year Ending Sep. 30, 2019 （１） Consolidated Statements of Income (Millions of yen) Oct.17 O Oct.18 O Changes from -Sept.18 -Sept.19 Previous year(％) N e t S a l e s 17,148 17 148 18,150 18 150 +5 8 +5.8 O p e r a t i n g I n c o m e 3,734 3,440 -7.9 O r d i n a r y I n c o m
Slide 11: Consolidated Sales Composition by Region
（２） Consolidated Sales Composition by Region Total 18,150 Total 17,148 (changes + 1,001) Total 15,641 ((changes g +1,507) , ) ((544 Thousands units)) (506 Thousands units) (521 Thousands units) Exchange rate Exchange rate US$=￥ 110.00 (+ ¥ 0.22) EUR=￥125.00 ( - ¥ 7.03) Exchange rate US$=￥ 109.78 ( -
Slide 12: Key Themes in the 63rd Term
（３）Key Themes in the 63rd Term ①Improving productivity with expansion of production capacity (facilities, increase in headcounts) and JIT (improvement, kaizen activities etc. activities, etc ②Make a thorough analysis of customer needs and launch attractive new models through the convergence g of ele
Slide 13: Expansion of production capacity
①Expansion of production capacity From the 62nd term through the 64th term, the existingg policy p y of enhancing g production p capacity p y from 500,000 to 600,000 units per year is firmly maintained. In order to achieve it,, we will work diligently on capital investment (attachment,) increasing g
Slide 14: Capital Expenditures and Depreciation
Capital Expenditures and Depreciation (Millions of Yen) ・Investment for Molds of New Products ・Construction of Large Wind Tunnel 1,500 Experiment Facility ・2nd Enlargement of Painting Facility & Equipment in Both Factories ・Investment for Molds of New Products 1,193 1,200 1,099 1,073 ・Investment for
Slide 15: CAPEX for the 63rd Fiscal Year
CAPEX for the 63rd Fiscal Year Total 1,193,202 Thousands of Yen Main capital investments 1 Mold 355,000 1. 355 000 Thousands of Yen 2. Cap bodies molding presses 166,800 Thousands of Yen 3 Robot grinder/expanded grinding 3. workshop 89 850 Th 89,850 Thousands d off Y Yen 4. Open preform machines 62,
Slide 16: Change of Employee
Change of Employee (People) Regular g employee p y Contract worker 600 500 400 300 200 100 0 Sep.2006 Sep.2007 Sep.2008 Sep.2009 Sep.2010 Sep.2011 Sep.2012 Sep.2013 Sep.2014 Sep.2015 Sep.2016 Sep.2017 Sep.2018 Sep.2019 Forecast -15-
Slide 17: JIT (Just in time) improvement activities
JIT (Just in time) improvement activities Classroom lecture Onsite guidance -16-
Slide 18: Increase in unit prices of products
Increase in unit prices of products Higher g added value and production p streamlining g are a pair of wheels for sustaining “Made in Japan.” Headquarters side Plants side Product Planning Department Strength of SHOEI Development Department Transforming ideas for mass production Product planning Res
Slide 19: Increase in unit price by developing attractive new models
②Increase in unit price by developing attractive new models Introduction of New Products to the Market ＜ EX EX--ZERO ＞ Vintage style full- full-face model 【Japan】 Launching in November 2018 Suggested Retail Price : YEN 38,000 ～ YEN 46,000 (E l di (Excluding Sales S l Tax) T ) -18-
Slide 20: GT-Air II
＜ GT GT--Air Ⅱ＞ F ll Face Full F Helmet H l t equipped i d with ith Sun S Visor Vi 【Europe】 L Launching hi in M h 2019 (*) i March (Initial Shipment : January 2019 (*) ) Suggested Retail Price Germany, y, France : EUR499.00 ～EUR629.00(Including VAT (Tax)) GT-Air : EUR479.00 ～ EUR579.00(Including VAT
Slide 21: The trend of average unit price for motorcycles helmets
The trend of average unit price for motorcycles helmets Sales unit price （units） （Yen） 600 30,000 Sales quantity Unit price 500 25,000 , 400 20,000 300 15,000 200 10,000 100 5 000 5,000 0 0 Sep.2005 p Sep.2006 p Sep.2007 p Sep.2008 p Sep.2009 p Sep.2010 p Sep.2011 p Sep.2012 p Sep.2013 p Sep.2014 p
Slide 22: Brand strategy
③ Brand strategy With an awareness that significant g market expansion in developed countries is unlikely in future, future we will aim to enhance our brand strength and retain consumers and dominant retailers by promoting PFS, PFS utilizing the internet, and pursuing effective advertising. -21-
Slide 23: Marc Marquez
Marc Marquez -22-
Slide 24: Retain consumers by PFS
Retain consumers by ＰＦＳ -23-
Slide 25: Sales force enhancement in promising markets
④Sales force enhancement in promising markets Sales force enhancement in promising markets Development of products meeting the new helmet safety standards in the Chinese market. Preferential allocation of management resources to t fi fields ld expected t d to t grow in i Asian markets other than Chi
Slide 26: Asian Market Trends
Asian Market Trends Population (1 million people) G / i (US$) GDP/capita ( S$) 1,386.4 China 8,643 China Indonesia 3,876 Indonesia 264.0 Philippines 2,976 Philippines 104.9 Thailand 6,591 Thailand 69.0 Korea 29,891 Korea 51.5 Malaysia 9,813 Malaysia 31.6 Taiwan 24,577 Taiwan 23 6 23.6 Hong Kong 46,1
Slide 27: Maintaining Basic Policy for Medium and Long Term
（13）Conclusion Summary Maintaining Basic Policy for Medium and Long Term Stable Growth and Stable Profit 1. Maintaining Healthy Financial Positions (Protect Own Company by Ourselves) a ta “Made 2. Maintain ade in Japa Japan,” , focusing ocus g on o higher g e value-added a ue added products p oducts
Slide 28: Thank you very much for your attention
Thank you very much for your attention and p please take good g care of our SHOEI’s helmets further on.