Mikuni Corporation · TSE:7247
Mikuni — FY2020 Earnings Presentation
34 slides from Mikuni's earnings presentation, May 27, 2021
Slide 1: Financial Results Briefing for the Fiscal Year ended March 2021
(Reference Translation) Financial Results Briefing for the Fiscal Year ended March 2021 May 27, 2021 Securities Code: 7247 Copyright(c) 2021 MIKUNI CORP. All Right Reserved.
Slide 2: Agenda
Financial Results Briefing May 27, 2021 Thursday 14:00-15:00 at Mikuni Building Agenda 1. Consolidated Financial Results for the Fiscal Year ended March 31, 2021 Hideki TAKAHASHI Director, Senior Executive Officer, CFO (15 minutes) ２．Outline of the Mid-term Vision Hisataka IKUTA President, CEO & COO
Slide 3: Consolidated Financial Results for the Fiscal Year ended March 31, 2021
Consolidated Financial Results for the Fiscal Year ended March 31, 2021 Copyright(c) 2021 MIKUNI CORP. All Right Reserved. 3
Slide 4: Mikuni's Business Segments
FY ended March 31,2021 Mikuni's Business Segments Net Sales and Composition Ratio by Business Segment 2% Other Business Automotive- 69% related Products Welfare vehicles, nursing care equipment and consumer products Turf-Care Equipment 3% Turf- Others ≫ for Four-wheelers Sales of Turf-care equipment
Slide 5: Financial Highlights
FY ended March 31,2021 Financial Highlights FY ended March 2021 (April 2020 - March 2021) Net sales down 21.3%, but operating income and ordinary income remain in the black. • The rapid decline in demand due to the spread of COVID-19 bottomed out in the second quarter. • Profit level exceeded the fo
Slide 6: Summary of Income Statement
FY ended March 31,2021 Summary of Income Statement Year-on-Year FY2022 FY2019 FY2020 Change Forecast (Millions of yen) Net sales 110,499 86,962 (23,537) 84,400 Net sales operating income 2,410 569 (1,840) 3,000 Ordinary income 1,858 597 (1,261) 2,200 Net income attributable to owners of the parent (
Slide 7: Net Sales and Operating Income by Business Segment (FY2019 and FY2020)
Net Sales and Operating Income FY ended March 31,2021 by Business Segment Net Sales and Operating Income by Business Segment (FY2019 and FY2020) Change Change in Operating FY2019 FY2020 in Net Sales Income Operating Operating Net Sales Net Sales Income income Amount Ratio Amount Ratio (Operating (Op
Slide 8: Forecast for FY ending March 31, 2022 by Business Segment
Net Sales and Operating Income Forecast for the FY ending March 31, 2022 by Business Segment Net Sales and Operating Income by Business Segment (FY2020 and FY2021) Change Change in Operating FY2020 FY2021 Est. in Net Sales Income Operating Operating Net Sales Net Sales Income income Amount Ratio Amo
Slide 9: Transition of Quarterly Net Sales and Operating Income
Transition of Quarterly Net Sales FY ended March 31,2021 and Operating Income ■Automotive Products Business ■Household Appliances Device Products Business ■Aircraft Parts Import and Sales Business ■Turf-Care Equipment Sales Business ■Other Business (Millions of yen) 35,000 31,706 30,789 30,000 29,04
Slide 10: Analysis of Changes in Operating Income (YoY)
FY ended March 31,2021 Analysis of Changes in Operating Income (YoY) (Millions of yen) FY2019 Operating Income 2,410 SG&A expenses FY2020 decreased Operating 1,178 Others 192 Income 569 COGS R&D expenses reduction decreased Production 854 efficiency (1,000) improved Depreciation 887 increased (29) I
Slide 11: Summary of Balance Sheet
FY ended March 31,2021 Summary of Balance Sheet End of March End of March Change (Millions of yen) 2020 2021 in amount Current assets 43,178 46,474 3,295 Fixed assets 47,217 47,417 199 Total assets 90,396 93,891 3,495 Current liabilities 31,206 31,218 11 Fixed liabilities 32,462 34,276 1,814 Net ass
Slide 12: Transition of Cash Flow
FY ended March 31,2021 Transition of Cash Flow In addition to the 5.4 billion yen positive cash flow attributable to income statement (profit + depreciation), the negative investment cash flow narrowed due to reduced capital expenditures and the sale of shares. Despite a decrease in operating cash f
Slide 13: Transition of R&D Expenses
FY ended March 31,2021 Transition of R&D Expenses The actual R&D expenses for FY2020 were 5.08 billion yen against the projected amount of 5.3 billion yen. Continuing activities to improve development efficiency resulted in a decrease of 0.8 billion yen from the previous fiscal year. (Millions of ye
Slide 14: Transition of Depreciation and Capital Expenditures
FY ended March 31,2021Transition of Depreciation and Capital Expenditures In addition to the fact that capital expenditure was pushed back due to the COVID-19 pandemic, the entire Group assessed investment efficiency, timing, and priority from the perspective of cash conservation, and as a result, c
Slide 15: Transition of Interest-Bearing Debt and Debt-to-Equity Ratio
FY ended March 31,2021 Transition of Interest-Bearing Debt and Debt-to-Equity Ratio Interest-bearing debt increased by 2.9 billion yen due to the negative free cash flow. Net debt- to-equity ratio increased to 1.2 times. (Times) (Millions of yen) 40,000 36,500 2.0 33,627 31,263 29,601 30,027 30,000
Slide 16: Transition of Capital Ratio
FY ended March 31,2021 Transition of Capital Ratio Although there were losses and dividends for the fiscal year, as well as the depreciation of local currencies (which reduced the value of assets and liabilities of overseas subsidiaries), net assets increased due to the rise in the share prices of l
Slide 17: Mid-term Vision
Mid-term Vision Copyright(c) 2021 MIKUNI CORP. All Right Reserved. 17
Slide 18: The revised Vision2023 Final STAGE
The revised “Vision2023 Final STAGE” Changes from the Previous Plan ◼ Responding to the movement toward solving global social issues ➢ Strengthen specific initiatives for climate change and digitalization ◼ Review market trend forecasts after the COVID-19 pandemic ➢ Re-establishment of quantitative
Slide 19: Long-term Environmental Vision
Long-term Environmental Vision Corporate Philosophy With a global perspective, Mikuni will contribute to the realization of an affluent society by making full use of our human resources and technology. Long-term Environmental Vision We will continue to be a valuable entity in solving the environment
Slide 20: Initiatives to Contribute the SDGs
Initiatives to Contribute the SDGs We will realize a cycle of improving the sustainability of the earth and society, as well as our own development, by carrying out activities in accordance with our corporate philosophy. Three goals that are closely related to our business activities Targets to be f
Slide 21: Initiatives for Carbon Minimization
Initiatives for Carbon Minimization in Production Plants Fuels with low CO2 Energy-efficient factories emission factors Use of Renewable Energy Reduction of GHG LNG storage facility in Efforts to increase CO2 (Greenhouse Gases) Kikugawa plant (Shizuoka absorption Prefecture) to Our Customers Through
Slide 22: Promotion of regional strategies
Strategies Three key drivers of growth in business strategy, regional strategy, and HR strategy 1. Optimal allocation of firm resources (people, goods, and money) 2. Improve competitiveness 3. Promotion of human capital management Promotion of business strategy (5 business domains) Automotive-relate
Slide 23: Automobiles: Market Trends, Environmental Regulations, and Forecast for Electrification
Automobiles: Market Trends, Environmental Regulations, and Forecast for Electrification ◼ After the coronavirus disaster, the annual sales volume will not recover to 90 million units until 2023 or later. ◼ Stricter environmental regulations will be enforced worldwide, and the ratio of electric vehic
Slide 24: Motorcycles: Market Trends, Environmental Regulations, and Forecast for Electrification
Motorcycles: Market Trends, Environmental Regulations, and Forecast for Electrification ◼ After the corona virus disaster, demand will expand mainly in India, and the global motorcycle production volume will increase to 62 million units in 2030. ◼ Environmental regulations will be tightened in each
Slide 25: Optimal Allocation of Firm Resources
Optimal Allocation of Firm Resources Allocate firm resources (people, goods, and money) from the perspective of total optimization Product Stars Question marks High ← Market growth rate → Low development for EVs Increased production Aiming to Product for growing markets increase market development N
Slide 26: Turning electrification into a business opportunity (products for automobiles)
Turning electrification into a business opportunity (products for automobiles) Actively invest management resources in the strategic development of products that utilize Mikuni's elemental technologies for electric vehicles. Motor Battery Inverter Charging system Coolant Circulation Electronic Water
Slide 27: Enhancing our presence in the market (motorcycles and marine products)
Enhancing our presence in the market (products for motorcycles and marine products, etc.) Improving environmental performance of motorcycle and marine products around the world by introducing Mikuni's technologies and further enhancing our presence in the market. Air Intake Module Variable Valve Tim
Slide 28: Sales Forecast for Automotive Products Business
Sales Forecast for Automotive Products Business Automotive-related Products (Millions of yen) 79,600 80,000 四輪車用製品 72,137 70,200 69,000 60,345 60,000 Products for Motorcycle and Marine Products, etc. 40,000 20,000 Products for Automobile 0 FY2018 2018年度 FY2019 2019年度 FY2020 2020年度 FY2021 2021年度 FY20
Slide 29: Mid-term Vision (KGI/KPI)
Mid-term Vision（KGI/KPI) Copyright(c) 2021 MIKUNI CORP. All Right Reserved. 29
Slide 30: Targets of the Mid-term Vision
Targets of the Mid-term Vision FY2023 Net Sales : 95 billion yen Operating Income : 5 billion yen Profit Margin : 5.0% or higher Operating income 5,000 4,403 （Millions of yen） 3,000 2,410 569 Net sales Figures based on the application of the accounting standard for revenue recognition retrospectivel
Slide 31: Net Sales by Region
Net Sales by Region The automotive related business in India will be the driving force for growth of the entire Mikuni Group. Figures based on the application of the accounting standard for revenue recognition retrospectively to FY2018. FY2018 95,000 India （Millions of yen） 7% 84,600 84,400 Japan 80
Slide 32: Financial Strategy: Maintain a Sound Financial Position
Financial Strategy: Maintain a Sound Financial Position Recover capital ratio and debt-to-equity ratio to appropriate levels Capital ratio Net D/E ratio 33% or higher less than 0.9 Own capital Capital ratio Interest-bearing debt Net asset Net D/E ratio （Millions of yen） 40.0% （Millions of yen） 40,00
Slide 33: Financial Strategy: Allocate Funds to Invest for Growth
Financial Strategy: Allocate Funds to Invest for Growth Investment in research stage shall be kept at a certain level. Improve the efficiency of development activities for mass production. And increase the ratio of investment in advanced development. Capital Expenditure and Depreciation R&D Expenses
Slide 34: Disclaimer
Disclaimer 1. This document has been prepared on a consolidated basis. 2. This document summarizes the financial results and earnings forecasts that have already been announced, and is provided solely for the purpose of providing information to investors, and is not intended as a solicitation to buy