Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — H1 FY23/24 Earnings Presentation
47 slides from Johnson Electric's earnings presentation, November 2023
Slide 1: FY23/24 Interim Results Investor Briefing
FY23/24 Interim Results For the period ended 30 September 2023 Investor Briefing November 2023
Slide 2: FY23/24 Interim Results Overview
FY23/24 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 3: Overview
Overview Automotive Industry Components & Products Group Products Group Services APG provides motion-related IPG serves a wide range of industrial, Our technical expertise, components for all vehicle types. professional and consumer in-house tool rooms and vertical We are well-placed to capitalize s
Slide 4: History & Development
History & Development Sales US$ 3.6bn 3.1bn Hong Kong Hong Kong listed Global family business company starting to multinational 2.1bn supply the world 1.7bn 1.1bn 677m 251m 126m 16m 54m Fiscal 1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2023 Year Founded by AC motor Listed on Ac
Slide 5: Driving a Sustainable Future
Driving a Sustainable Future 5 A World of Motion. Powered by Sustainable Innovation…
Slide 6: Strategies
Strategies Develop Focus Invest Build Align Acquire and Retain on serving in technological a resilient global the design and selective a diverse, customers whose innovation to manufacturing production businesses talented, and products are provide unique footprint to processes with that bring inclusi
Slide 7: FY23/24 Interim Results Overview
FY23/24 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 8: Why Invest in Johnson Electric?
Why Invest in Johnson Electric? Innovative motion solutions for today and One of the World’s the future Largest Providers of Motion Solutions Geographically diverse, blue-chip in electric motors, customer base actuators, motion subsystems and related Global operating footprint with vertical electrom
Slide 9: Innovative Solutions for Today & the Future
Innovative Solutions For Today & the Automotive Smart Home & Electrification & Healthcare E-Commerce & IOT Environment Industrial Subsystems and Home automation for Zero-carbon solutions Medical device Industrial equipment, components that windows and robotic for mobility, lawn care subsystems for d
Slide 10: Our Divisions
Our Divisions •••• Automotive Industry Products Products Group Group • Braking • Thermal • Business • Medical devices • Closure management equipment • Power tools • Interior • Transmission • E-bikes • Robotics & driveline • Home automation • • Pumps Smart metering • Steering • Vision • Industrial •
Slide 11: Diversified Sales
Diversified Sales First Half of FY23/24 11 A World of Motion. Powered by Sustainable Innovation…
Slide 12: Diversified Customer Base
Diversified Customer Base World-class Customers Across Diversified Industries 400+ Automotive Customers 1200+ Non-Auto Customers Disclaimer: All customer tradenames and trademarks are the property of their respective owners. Their use in this presentation is for identification purposes only. 12 A Wo
Slide 13: Market shift to net zero
Market shift to net zero APG’s Growth Opportunity • NEV 2022-2029 CAGR 21% • • 13 A World of Motion. Powered by Sustainable Innovation…
Slide 14: JE Automotive Products
JE Automotive Products Enabling Electrification and Reducing Emissions ICE BEV Powder Metal JE Applications Suitable Shift- by-wire for All Vehicle Types parts Mild HEV PHEV Thermal Brushless DC module Management HEV Large Cooling E-oil carrier fan pump Vision Pump module gear Power Closure E-water
Slide 15: JE Automotive Products: Well Positioned for NEV Growth
JE Automotive Products Well Positioned for Growth in New Energy Vehicles (NEV) Electric Integrated JE Mild HEV BEV supercharger system blower thermal management system Applications targeting Hybrid & BEV HEV PHEV Mild HEV HEV PHEV E-water Planetary BEV pump assemblies Fuel pump E-turbo Electric thro
Slide 16: Well Positioned to Capitalize on the Automotive Market Move
Well Positioned to Capitalize on the Automotive Market Move Electrifying critical EV functions Thermal Management Enabling critical EV • ITMS thermal management • Electric water systems for enhanced pump driving range, extended • Valve actuator battery life & shortened • Electric oil charging times
Slide 17: Examples of Recent Automotive Business Wins for NEVs
Examples of Recent Automotive Business Wins for New Energy Vehicles Our innovative products are winning Braking Applications Brake booster, e-parking lock, e-parking brake and electric vacuum pump for safety business on major NEV platforms and shorter braking distance, lower weight, and energy regen
Slide 18: Autonomous Driving & Connectivity
Autonomous Driving & Connectivity Smart Smart Steering & Vision Closure Cabin Braking Window lift and sunroof motor Seat adjuster motor Steering-by-wire motor LiDAR motor Electro-mechanical braking motor Power door Sensor washing system opening motor Brake-by-wire Power lift tailgate / frunk motor R
Slide 19: IPG Growth Supported by Megatrends
IPG Growth Supported by Megatrends Focusing on Smart Home and Internet of Things sustainable growth prospects Electrification & Environment Touching Human Needs E-commerce & Industrial Healthcare Improving Performance 19 A World of Motion. Powered by Sustainable Innovation…
Slide 20: Winning Market Traction
Winning Market Traction Medium-term sales outlook 5-9% US$ 5.6bn CAGR US$ 3.6bn New business wins US$ 4.7bn and opportunities 2-4% 2-3% Global Global are set to sustain GDP vehicle growth growth growth FY22/23 Actual FY27/28 Forecast Note: Estimated total Group sales outlook based on customer order
Slide 21: Global Operating Footprint
Global Operating Footprint Operating in 22 Countries across 4 Continents Manufacturing sites Sales & support offices Engineering sites All 21 A World of Motion. Powered by Sustainable Innovation…
Slide 22: ESG is Integral to Johnson Electric's Evolution: CO2 and Energy Targets
ESG is Integral to Johnson Electric’s Evolution Our environmental strategy and policies CO2 and Energy Targets address: Energy and climate Waste Water Emissions Climate risks 22 A World of Motion. Powered by Sustainable Innovation…
Slide 23: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to Johnson Electric’s Evolution We are a truly global team We thrive on innovation and We believe that hiring the right bound together by our shared excel in execution. We are people and putting them in the values. We recognize that the committed to making our right jobs maximize the
Slide 24: ESG: Flagship JETC and JEnerations programmes
ESG is Integral to Johnson Electric’s Evolution JETC bringing education to the Our JEnerations teams organize underprivileged in China & Mexico local community activities Our flagship JETC and JEnerations programmes give testimony to our commitment to contributing to local communities, wherever we o
Slide 25: Key sustainability achievements in FY22/23
ESG is Integral to Johnson Electric’s Evolution Key sustainability achievements in FY22/23 Sustainability Reduced absolute Zero waste Established a aligns with carbon emissions by Diversity, Equity and to landfill 20% Inclusion Committee our business 15 operating sites Launched values, goals, now us
Slide 26: FY23/24 Interim Results Overview
FY23/24 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 27: Financial Highlights
Financial Highlights 1. Earnings before interest, tax and amortization 2. Adjusted to exclude unrealized gains or losses relating to exchange rate movements as well as restructuring and other related costs 27 A World of Motion. Powered by Sustainable Innovation…
Slide 28: Financial Highlights
Financial Highlights 1. Cash less total debt 2. Total equity plus total debt 3. Including pension liabilities and lease liabilities 4. Earnings before interest, tax, depreciation and amortization, adjusted , annualized using the last 12 months results, giving adjusted EBITDA of US$532.9 million (31
Slide 29: FY23/24 Interim Results Overview
FY23/24 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 30: Group Sales Changes
Group Sales Changes First Half of FY23/24 vs. First Half of FY22/23 Sales increased 9% driven by strong demand for APG’s products partly offset by soft markets for IPG’s products 30 A World of Motion. Powered by Sustainable Innovation…
Slide 31: APG Sales Growth vs. Light Vehicle Production
APG Sales Growth vs. Light Vehicle Production First Half of FY23/24 vs. First Half of FY22/23 Strong growth momentum in all regions with increased sales for thermal management, powder metal, oil pump and braking applications 31 A World of Motion. Powered by Sustainable Innovation…
Slide 32: APG Multi-Year Sales Changes vs. Light Vehicle Production
APG Multi-Year Sales Changes vs. Light Vehicle Production Consistently outperforming light vehicle production, due to APG’s focus on : • Technologies for battery- electric & hybrid vehicles • Weight reduction • Safety & comfort Note: Lines for chart refer to cumulative performance 32 A World of Moti
Slide 33: IPG Sales Growth by Region
IPG Sales Growth by Region First Half of FY23/24 vs. First Half of FY22/23 Weaker demand for home centric products and declining consumer sentiment in the face of higher inflation and rising interest rates impacted IPG’s sales 33 A World of Motion. Powered by Sustainable Innovation…
Slide 34: IPG Multi-Year Sales Trend
IPG Multi-Year Sales Trend 34 A World of Motion. Powered by Sustainable Innovation…
Slide 35: Adjusted Net Profit
Adjusted Net Profit First Half of FY23/24 vs. First Half of FY22/23 Volume / mix, cost saving activities, lower ocean freight rates and partial recovery of cost inflation improved profits 1 1 1. Adjusted to exclude unrealized gains or losses relating to exchange rate movements as well as restructuri
Slide 36: Working Capital and Capital Expenditure
Working Capital and Capital Expenditure Trade and Other Receivables Trade and Other Payables US$ Days US$ Days million sales million purchases outstanding* outstanding** Inventories Capital Expenditure US$ Days US$ CAPEX as million inventory million % of sales on hand 36 A World of Motion. Powered b
Slide 37: Free Cash Flow from Operations
Free Cash Flow from Operations * Capital expenditure, net of subsidies & proceeds from disposal of fixed assets 37 A World of Motion. Powered by Sustainable Innovation…
Slide 38: Utilization of Free Cash Flow
Utilization of Free Cash Flow 38 A World of Motion. Powered by Sustainable Innovation…
Slide 39: Dividends
Dividends * Final dividend to be determined at the end of the fiscal year 39 A World of Motion. Powered by Sustainable Innovation…
Slide 40: FY23/24 Interim Results Overview
FY23/24 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 41: Outlook
Outlook Much improved financial condition Solid sales growth has underpinned a return to more acceptable levels of profitability and cash flow generation Progress in enhancing manufacturing efficiencies and rationalising product lines Well advanced in the development of large-scale, low-cost
Slide 42: FY23/24 Interim Results Overview
FY23/24 Interim Results Investor Briefing Overview Why Invest in Johnson Electric? Key Financial Highlights Operating Results Outlook Supplemental Information A World of Motion. Powered by Sustainable Innovation…
Slide 43: Profitability Review
Profitability Review First Half of FY23/24 vs. First Half of FY22/23 43 A World of Motion. Powered by Sustainable Innovation…
Slide 44: Profitability Review
Profitability Review First Half of FY23/24 vs. First Half of FY22/23 44 A World of Motion. Powered by Sustainable Innovation…
Slide 45: From Reported to Adjusted Net Profit
From Reported to Adjusted Net Profit 1. Adjusted to exclude unrealized gains or losses relating to exchange rate movements as well as restructuring and other related costs. Unrealized gains or losses relating to exchange rate movements are significant non-cash items. Restructuring and other related
Slide 46: Average Exchange Rates
Average Exchange Rates First Half of FY23/24 vs. First Half of FY22/23 46 A World of Motion. Powered by Sustainable Innovation…
Slide 47: 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
Johnson Electric Holdings — H1 FY23/24 Earnings Presentation on 6ix