JTEKT Corporation · TSE:6473
JTEKT — H1 FY2010 Earnings Presentation
34 slides from JTEKT's earnings presentation, Nov 10, 2009
Slide 1: Presentation of financial results for the fiscal year first half through September 2009
1 Presentation of financial results for the fiscal year first half through September 2009 November 10, 2009 J T E K T Corporation J T E K T Corporation
Slide 2: Part I: Results for the fiscal year first half through September 2009
2 Part I 1. Results for the fiscal year first half through September 2009 J T E K T Corporation
Slide 3: 1-1) Financial data ①
1-1) F inancial data ① 3 (billions of yen) F Y 1st half F Y 1st half F Y ended thru 9/08 thru 9/09 Comparison 3/09 Net sales 581.4 339.8 58.4% 1,017 O perating income 34.1 - 14.2 ― 22.3 O rdina ry income 35.2 - 14.5 ― 11.1 Net income 20.4 - 16.5 ― - 11.9 J T E K T Corporation
Slide 4: 1-2) Financial data ②
1-2) F inancial data ② 4 (billions of yen) F Y 1st half F Y 1st half F Y ended thru 9/08 thru 9/09 Comparison 3/09 Inventory assets 135.6 119.4 (93.6%) 127.7 Interest-bearing debt 184.9 255.5 (118.2%) 216.2 C apital expenditures 24.3 14.8 (61.2%) 51.1 Depreciation 26.6 24.4 (91.6%) 55.8 J T E K T Co
Slide 5: 1-3) Sales by product type
1-3) Sales by product type 5 ※Parentheses show comparisons with previous FY 1Q 2Q 3Q 4Q (billions of yen) 0 200 400 600 800 Mechanical component 1st half 479.6 FY thru 3/09 239.6 240.0 208.8 141.9 830.3 FY thru 3/10 132.5 164.8 297.3 (62.0%) M a c h i n e tools,etc 1st half 101.7 FY thru 3/09 42.4 5
Slide 6: 1-4) Sales by region
1-4) Sales by region 6 ※Parentheses show comparisons with previous FY 1Q 2Q 3Q 4Q (billions of yen) 0 100 200 300 400 500 600 Japan 1st half 309.4 FY thru 3/09 148.4 161.0 134.4 95.4 539.2 FY thru 3/10 85.4 104.3 189.7 (61.3%) ※ O verseas affiliates use Jan-Dec fiscal year, so periods are 3 months0
Slide 7: 1-5) Operating income by product group
1-5) O perating income by product group 7 M echanical components Sales (left axis) Operating profit (right axis) Operating profit ratio (billions of yen) 400 5.8% 4.6% 80 -0.2% -0.1% -5.0% -9.7% 300 239.6 240.0 60 208.8 200 141.9 164.8 40 132.5 100 13.9 11.0 20 0 0 -0.3 -0.2 -6.6 -100 -13.8 -20 1Q 2
Slide 8: 1-6) Operating income by region
1-6) O perating income by region 8 Japan Sales (left axis) Operating profit (right axis) E urope (billions of yen) Operating profit ratio 5.1% 6.5% -1.7% -3.3% 2.3% 2.6% 0.4% -10.0% -12.3% 100 -4.3% 20 200 161.0 40 -11.8% 148.4 -0.9% 134.4 59.5 61.4 95.4 104.3 49.0 85.4 50 35.0 10 100 20 31.0 28.9 1
Slide 9: 2. Business plan for the FY through March 2010
9 2. Business plan for the F Y through M arch 2010 J T E K T Corporation
Slide 10: 2-1) Financial data
2-1) F inancial data 10 E xchange assumptions (2nd half) (billions of yen) US$ 90.00 EURO 125.00 F Y thru 3/09 F Y thru 3/10 Comparison Net sales 1,017 740 72.8% O perating income 22.3 -4 ― O rdinary income 11.1 -5 ― Net income - 11.9 -11 ― C apital expenditures 51.1 32 62.6% Depreciation 55.8 50 89
Slide 11: 2-2) Sales by product type
2-2) Sales by product type 11 ※Parentheses show comparisons with previous FY 1st half 2nd half (billions of yen) 0 200 400 600 800 Mechanical component FY thru 3/09 479.6 350.7 830.3 FY thru 3/10 297.3 (62.0%) 357.7 (102.0%) 655 (78.9%) M a c h i n e tools,etc FY thru 3/09 101.7 85 186.7 42.5 FY thr
Slide 12: 2-3) Sales by region
2-3) Sales by region 12 ※Parentheses show comparisons with previous FY 1st half 2nd half (billions of yen) 0 100 200 300 400 500 600 Japan FY ended 3/09 309.4 229.8 539.2 FY ended 3/10 189.7 (61.3%) 224.3 (97.6%) 414.0 (76.8%) 0 100 E urope FY ended 3/09 120.9 80.0 200.9 Asia/Oceania FY ended 3/09 6
Slide 13: Part II
13 Part I I 1. Rebuilding of profitable business structure 2. Business strategy for future growth 3. Strengthening of bearing business 4. Summary J T E K T Corporation
Slide 14: Items explained last time: Rebuilding of profitable business structure
1. Rebuilding of profitable business structure 14 A ctivity focuses ◇ Reduce fixed costs to match production scale Lower breakeven ◇ M ake variable costs completely variable point 1. M ar ket trends Items explained last time 2. Wor kforce adjustments to match demand 3. Reorganization of global mfg s
Slide 15: 1-1) Market trends
1-1） M ar ket trends 15 Worldwide automobile production M achine tool orders received in Japan Japan NA W Eur China India Other Domestic Overseas (billions of yen) demand demand 1,600 (millions of vehicles) 100 Unclear 1,200 80 60 800 Direction unclear 40 400 20 0 0 2007 2008 2009 2010 2013 FY06 FY0
Slide 16: 1-2) Workforce adjustments to match demand
1-2) Wor kforce adjustments to match demand 16 Measures in Japan －A dditional measures－ ＜M easures until now＞ ◇ A dmin (indirect) personnel F lexible wor kforce adjustments temporary transfer to internal lines ◇ Non-regular employee ◇ G ive/receive mfg support to/from contract nonrenewal Index of no
Slide 17: 1-3) Reorganization of global mfg structure: Domestic
1-3) Reorganization of global mfg structure 17 ① Domestic mfg structure Reorganization aims ◇ E liminate product mfg overlap created by merger ◎ Nagoya Nara Plant ◇ A ppropriately adjust to M echatronics decreased hydraulic PS volumes operations stopped resulting from shift to E PS in Dec 2009 ◇ E l
Slide 18: 1-3) Reorganization of global mfg structure: Overseas
1-3) Reorganization of global mfg structure 18 ② O verseas mfg structure Reorganization steps Step 1 Step 2 Step 3 Step 4 Raise production C ar ry out line C ar ry out line Study capacity without mergers within mergers between reorganization adding new lines plants plants of bases Introduce, fully i
Slide 19: 1-3) North American steering mfg structure
1-3) Reorganization of global mfg structure 19 ③ North A merican steering mfg structure N A steering: C hange from four- to three-plant structure M arch 2010 closure ：L ine transfers accompanying J AVA closure J AVA (Virginia) J AT M (Tennessee) J AT V (Tennessee) C-E PS line transfer C-E PS line tr
Slide 20: 1-4) Reorganization of domestic logistics structure
1-4) Reorganization of domestic logistics structure 20 Concentration at Concentration M erge logistics into three centers existing base at new base Merged bases Kanto area (6 bases → 1 base) Chubu area (2 bases → 1 Kansai area (5 bases → 1 base) base) Concentration Concentration Establishment of at
Slide 21: 1-5) Rebuilding of profitable business structure: Summary
1-5) Rebuilding of profitable business structure: Summary 21 Lowering of breakeven point ◇ Reduce fixed costs to match production scale ◇ M ake variable costs completely variable Transition of breakeven point A djust wor kforce to match demand Reorganize production bases Reduce capital expenditures,
Slide 22: 1-5) Achieve profitability from the 3rd quarter
1-5) Rebuilding of profitable business structure: Summary 22 A chieve profitability from the 3rd quarter Op. profit Sales Operating profit Japan Sales Operating profit E urope Sales (billions of yen) (billions of yen) (billions of yen) (billions of yen) 15 200 4 80 10 100 2 40 5 0 0 0 0 -5 -2 -10 １Q
Slide 23: 2. Business strategy for future growth
2. Business strategy for future growth 23 1. Strengthen operations in emerging mar kets ① Construct steering supply structure 2. Strengthen operations in industrial machinery mar kets ① Devise business strategy ② Strengthen regional sales networ ks ③ Strengthen machine-related business ④ Introductio
Slide 24: 2-1) Strengthen operations in emerging markets
2-1) Strengthen operations in emerging mar kets 24 ① Construct steering supply structure O verseas affiliates, regions Products A ims JSA I ・ Meet increasing E PS demand H aryana, ⇒ E PS for small cars expanding India C-E PS ・Supply high-quality E PS Completion: Feb 2008 SO P: Feb 2010 (planned) JAB
Slide 25: 2-2) Bearing business strategy
2-2) Strengthen operations in industrial machinery mar kets 25 ① Bearing business strategy Windmill power Targets: C hinese, Indian, Windmill power generator bearing sales targets generators K orean makers (sales growth using 2008 results as 100) A reas of focus: G enerators, speed increasing gears
Slide 26: 2-2) Strengthen regional sales networks: China, India
2-2) Strengthen operations in industrial machinery mar kets 26 ② Strengthen regional sales networ ks C hina India Strengthening of sales networ ks Targets: ◇ L arge trading company networ k ◇ E xpansion of sales to local makers ◇ Distributor networ k Strengthen ◇ E nergy, steel, agriculture, constru
Slide 27: 2-2) Strengthen machine-related business
2-2) Strengthen operations in industrial machinery mar kets 27 ③ Strengthen machine-related business Cooperation among G roup companies in machine-related business ◇ Improve development efficiency by three 5-axis machining centers companies’ sharing of element technology JT E K T Complex machining c
Slide 28: 2-2) Introduction of JTEKT Technical Fair 2009
2-2) Strengthen operations in industrial machinery mar kets 28 ④ Introduction of J T F ◇ J T E K T Technical F air 2009 Dates: November 4~5 Place: J T E K T C ustomer C enter ( K ariya, A ichi Prefecture) Concept: “Seeing the Future of Monozukuri” Display mainly of new machine tool and mechatronics
Slide 29: 2-3) Steering strategies by region, product
2-3) Strengthen ability to develop technology/products 29 matching demand trends ① Steering strategies by region, product Pioneer new customers by implementing region- and product-specific strategies A/B/C-segment vehicles Improve C-E PS product strength Product strategies D/E/F-segment vehicles Pro
Slide 30: 3. Strengthening of bearing business
3. Strengthening of bearing business 30 O utline of needle roller bearing business acquisition J T E K T Corporation
Slide 31: 3-1) Outline of NRB business acquisition ①
3-1) O utline of N R B business acquisition ① 31 Trend of global demand for automotive needle roller bearings （billions of yen） 400 N R B demand 300 ◇ E volution of automotive transmissions AT → M ultistage AT 200 MT → Dual clutch transmission ◇ Increased demand for fuel-efficient, 100 low-emission
Slide 32: 3-1) Outline of NRB business acquisition ②
3-1) O utline of N R B business acquisition ② 32 A ims of N R B business acquisition ◇ E nhance global development/mfg networ k Secure world’s no.1 ◇ E xpand customer base ◇ O btain superior mfg technology capability position in ◇ Strengthen drivetrain area automotive bearings Outline of Timken’s NR
Slide 33: 4. Summary
4. Summary 33 Toward strong Implementation of business strategies growth in the for future growth new era Low-cost, E merging- Industrial compact, Strengthening nation machinery lightweight of in-G roup mar kets mar kets technology cooperation development Completion of measures to achieve F urther s
Slide 34: Thank you for your kind attention
34 T hank you for your kind attention J T E K T Corporation J T E K T Corporation