JVCKENWOOD Corporation · TSE:6632
JVCKENWOOD — Q1 FYE3/2023 Earnings Presentation
32 slides from JVCKENWOOD's earnings presentation, Jul 29, 2022
Slide 1: Results and Forecast Briefing, First Quarter FYE3/2023
Translation for Reference Only JVCKENWOOD Results and Forecast Briefing First Quarter of Fiscal Year Ending March（IFRS) July 29, 2022 JVCKENWOOD Corporation Copyright © 2022 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Agenda
1. Overview of Q1 Financial Results for FYE3/’23 2. Full-year Earnings Forecast for FYE3/’23 3. Topics <Reference Material>
Slide 3: 1. Overview of Q1 Financial Results for FYE3/'23
1. Overview of Q1 Financial Results for FYE3/’23 2. Full-year Earnings Forecast for FYE3/’23 3. Topics <Reference Material>
Slide 4: Q1 of FYE3/'23: Highlights
Financial Results for Q1 of FYE3/’23: Highlights ※ M&T：Mobility & Telematics Services Sector Results for Q1 of FYE3/’23 PS：Public Service Sector MS：Media Service Sector Results exceeded the initial forecast for the whole company, despite some unevenness depending on the sector. PS exceeded expec
Slide 5: Q1 of FYE3/'23: Highlights
Financial Results for Q1 of FYE3/’23: Highlights （Billion yen） 'FYE3/’21 Q1 'FYE3/’22 Q1 'FYE3/’23 Q1 YoY Revenue 51.1 64.5 72.0 + 7.5 +11.6% Cost of sales 38.7 47.3 53.2 + 5.9 +12.4% Gross profit 12.5 17.2 18.8 + 1.6 +9.5% Profit margin 24.4% 26.7% 26.2% Core operating -3.1 0.37 0.44 + 0.1 +19.4% i
Slide 6: Q1 of FYE3/'23: Trends in Quarterly Results
Financial Results for Q1 of FYE3/’23: Trends in Quarterly Results In Q1, overall revenue and profit increased year-on-year, with strong sales of the PS Communications Systems Business. Annual Quarterly （Billion yen) （Billion yen) FYE3/’21 FYE3/’22 FYE3/’23 300.0 282.1 273.6 87.5 9.5 78.7 6.9 77.2
Slide 7: Factors for Changes in Core Operating Income
Financial Results for Q1 of FYE3/’23: Factors for Changes in Core Operating Income In Q1, profit increased year-on-year, as the impacts of increased costs and the Shanghai lockdown were covered by price increases and a revenue increase. Improvement in （Billion yen） Cost increase Revenue the impact
Slide 8: Q1 of FYE3/'23: Results by Sector
Financial Results for Q1 of FYE3/’23: Results by Sector （Billion yen） FYE3/’21 Q1 FYE3/’22 Q1 FYE3/’23 Q1 YoY Revenue 29.0 38.7 43.9 + 5.2 13.5% M&T Core Operating Income -1.6 0.2 -0.3 -0.5 - Revenue 10.5 12.6 14.0 + 1.4 11.1% PS Core Operating Income -1.5 -0.4 0.7 + 1.2 - Revenue 10.6 11.9 12.9 + 1
Slide 9: M&T Sector: Trends in Revenue and Core Operating Income
M&T Sector: Trends in Revenue and Core Operating Income Despite strong sales of the Aftermarket and Telematics Services Business in Q1, revenue and profit of the whole business sectors decreased year-on-year, due to the significant impact of the Shanghai lockdown on the OEM Business. Annual Quarte
Slide 10: PS Sector: Trends in Revenue and Core Operating Income
PS Sector: Trends in Revenue and Core Operating Income The sector started with profit due to the increased revenue and profit year-on-year, as the Communications Systems Business continued to perform well in Q1. Annual Quarterly （Billion yen) （Billion yen) FYE3/’21 FYE3/’22 FYE3/’23 60.9 60.8 Prof
Slide 11: MS Sector: Trends in Revenue and Core Operating Income
MS Sector: Trends in Revenue and Core Operating Income For Q1, the sector saw revenue increasing and profit decreasing year-on-year due to the impact of production transfer on the Media Business, although the contents of the Entertainment Business sold well. Annual Quarterly （Billion yen) （Billion
Slide 12: Consolidated Revenue by Region
Financial Results for Q1 of FYE3/’23: Consolidated Revenue by Region Revenue increased year-on-year, except in Japan where M&T dealer installed products were significantly affected by the Shanghai lockdown. Increase/Decrease by Region Trends by Region （Billion yen） （Billion yen） Others 1.2 Asia/Ch
Slide 13: Consolidated Profit/Loss Summary
Financial Results for Q1 of FYE3/’23: Consolidated Profit/Loss Summary Core operating profit increased due to a revenue increase, but all levels of profit/loss at and below operating profit decreased year-on- year due to a decrease in a gain on sales of subsidiaries and gain on valuation of financ
Slide 14: Q1 of FYE3/'23: Financial Position Summary
Financial Results for Q1 of FYE3/’23: Financial Position Summary Cash and deposits amounted to 46.8 billion yen, a decrease of 1.9 billion yen year-on-year. Net debt was 22.1 billion yen, an increase of 0.9 billion yen year-on-year. Equity attributable to owners of the parent company increased b
Slide 15: Q1 of FYE3/'23: Cash Flow Summary
Financial Results for Q1 of FYE3/’23: Cash Flow Summary Net cash from operating activities improved significantly year-on-year, although inventories continued to increase due to the problems in components supply. Net cash used in investing activities increased, excluding proceeds from the sale o
Slide 16: 2. Full-year Earnings Forecast for FYE3/'23
1. Overview of Q1 Financial Results for FYE3/’23 2. Full-year Earnings Forecast for FYE3/’23 3. Topics <Reference Material>
Slide 17: Full-year Earnings Forecast for FYE3/'23
Full-year Earnings Forecast for FYE3/’23 In Q1, sales of the PS Communications Systems Business were stronger than expected, resulting in higher performance than expected at the beginning of the period. There is no revision to the consolidated earnings forecast at this time, while from Q2 onward
Slide 18: 3. Topics
1. Overview of Q1 Financial Results for FYE3/’23 2. Full-year Earnings Forecast for FYE3/’23 3. Topics <Reference Material>
Slide 19: M&T Sector: Status of OEM Business
M&T Sector: Status of OEM Business OEM business: Status of the Shanghai Plant (Billion yen) 150.0 Revenue results + Forecast Operation was suspended in Q1 due to the lockdown. Core operating loss was 1.5 Expected orders billion yen. => The Plant resumed operations in late June and is expected to
Slide 20: Progress in the M&T Sector's Return to Japan
Progress in the M&T Sector’s Return to Japan (Units) Increased production volume at 500,000 Production volume at JVCKENWOOD Nagano JVCKENWOOD Nagano Production volume for the full year is expected to be approximately five times 400,000 higher year-on-year, partly due to the start of production of
Slide 21: Vieureka Co., Ltd. Starts Business on July 1
“Vieureka Co., Ltd.” Starts Business on July 1 Invested in a new company “Vieureka Co., Ltd.” that provides edge AI social infrastructure “Vieureka Platform” As Phase 2 of the Telematics Service Business, aiming to create a “service business by increasing the added value of communication type da
Slide 22: PS Sector - Growth of Communications Systems Business
PS Sector - Growth of Communications Systems Business (Million dollars) The Communications Systems Business recovered Communications Systems significantly due to an improvement in components order backlog supply problems. It has gained market shares from （EFJT＋JKUSA） competitors with supply proble
Slide 23: Donation of Radios to Ukraine
Donation of Radios to Ukraine We have donated radios for business use to the Ukrainian Embassy in Japan with the cooperation of the Ministry of Internal Affairs and Communications of Japan for the purpose of supporting the reconstruction of the country. We have donated radio equipment that can u
Slide 24: Selected as a Constituent of the FTSE ESG Index
External Evaluation on ESG: Selected as a Constituent of the FTSE ESG Index Selected as a constituent of the FTSE ESG Index Series in recognition of our efforts to enhance sustainability and ESG-related information disclosure FY2021 Remarks • ESG-focused index created by FTSE Russell FTSE Blossom
Slide 25: Slide 25
Slide 26: Reference Material
<Reference Material>
Slide 27: Business Areas
Business Areas Others 2% Public Service Sector (PS) MS 19% Entertainment 7% Media 12% OEM FYE3/’22 (Revenue 36% Professional Composition Systems Ratio) M&T 58% Low power transceiver 8% Medical image display monitor （282.1 B yen) Communication Systems Telematics PS 21% 13% Service Aftermarket 16% 6%
Slide 28: Full-year Earnings Forecast for FYE3/'23 by Segment
Full-year Earnings Forecast for FYE3/’23 by Segment ※ No change from initial forecast (Billion Yen) Result for Result for Forecast for YoY FYE3/'21 FYE3/'22 FYE3/'23 Revenue 157.1 164.3 181.0 + 16.7 M&T Core Operating Income 5.6 2.2 5.1 + 2.9 Revenue 60.9 58.1 60.8 + 2.7 PS Core Operating Income 1.9
Slide 29: Factors Causing Increase or Decrease in Operating Profit
Financial Results for FYE3/’23: Factors Causing Increase or Decrease in Operating Profit ※ No change from initial forecast (Billion yen) Easing of the impact of Increase due to higher costs short supply of semiconductors and Increase in revenue other components Price adjustment +7.4 -9.0 Other reven
Slide 30: Consolidated Revenue & Core Operating Income by Sector
Financial Results for 1Q of FYE3/’23: Consolidated Revenue & Core Operating Income by Sector Revenue Core Operating Income （Billion yen) （Billion yen) MS Others M&T PS +1.0 -0.1 ＋1.4 ＋5.2 MS -0.7 PS 72.0 +1.2 64.5 Others ＋0.1 0.4 0.4 M&T -0.5 Q1 of Q1 of FYE3/’22 FYE3/’23 Q1 of Q1 of FYE3/’22 FYE3/’
Slide 31: Changes in Management Indices
Changes in Management Indices Trends in Capital investment, Depreciation, and R&D expenses （Billion yen） FYE3/'21 FYE3/'22 FYE3/'23 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Capital investment* （Property, plant and equipment & 3.9 3.3 8.1 4.3 19.5 4.4 7.6 5.5 4.8 22.3 5.4 Intangible fixe
Slide 32: Forward-looking statements disclaimer
The expressions contained in this presentation referring to the Company's future plans, intentions and expectations are categorized as future forecast statements. Such statements reflect management expectations of future events, and accordingly, are inherently susceptible to risk, uncertainty and ot