Fujikura Ltd · TSE:5803
Fujikura — FY2017 Earnings Presentation
27 slides from Fujikura's earnings presentation, May 11, 2018
Slide 1: FY2017 Financial Results
FY2017 Financial Results Fujikura Ltd. May 11, 2018
Slide 2: Contents
Contents 1. FY2017 Financial Results and FY2018 Forecast 2. By Segment 3. Return to Shareholders 1
Slide 3: 1. FY2017 Financial Results and FY2018 Forecast
1. FY2017 Financial Results and FY2018 Forecast 2
Slide 4: FY2017 Financial Results
FY2017 Financial Results （Unit：Yen in billion） FY2017‐FY2016 FY2016 FY2017 Change Net Sales 653.7 740.0 +86.2 Operating Income 34.2 34.3 +0.1 Ratio of Operating Income to 5.2 4.6 (0.6) Net Sales（%） Share of profit of entities accounted for using equity method 1.0 1.5 +0.4 Ordinary Income (Loss) 32.5
Slide 5: Summary of FY2017 Business Results
Summary of FY2017 Business Results Net sales increased on a YoY basis owing to the depreciation of the yen, rise in copper price and increase of production volumes in the electronics and automotive businesses. Operating income was at the same level as the previous year due to the following facto
Slide 6: FY2017 Contributing Factors to Net Sales Change
FY2017 Contributing Factors to Net Sales Change（year-on-year basis） Net Sales （Unit：Yen in billion） Power & Automotive Other Telecommunication Business Systems Electronics +0.9 Business Business +18.0 Effect of Copper (1.3) +35.6 Price Effect of Forex +18.7 +14.3 740.0 86.2 higher than FY2016 653.7
Slide 7: FY2017 Contributing Factors to Operating Income Change
FY2017 Contributing Factors to Operating Income Change（year-on-year basis） Operating Income （Unit：Yen in billion） Electronics Automotive Change in Business Business depreciation method +2.2 Effect of +2.5 (5.7) Other Forex +1.4 (0.4) 34.2 34.3 0.1 higher than FY2016 FY2016 FY2017 Results Results 6
Slide 8: FY2017 Extraordinary Profit and Loss
FY2017 Extraordinary Profit and Loss （Unit：Yen in billion） FY2016 FY2017 Operating Income 34.2 34.3 We have been working on Share of profit of entities accounted for business structural reform since using equity method 1.0 1.5 FY2016. Ordinary Income 32.5 34.1 [FY2017] Extraordinary Income 0.6 1.0 I
Slide 9: Consolidated B/S (1)
Consolidated B/S (1) （Unit：Yen in billion） As of March As of March Change 31, 2017 31, 2018 〈Assets〉 588.6 638.0 +49.4 Current Assets 296.5 328.2 +31.7 Cash and Deposits 31.7 34.2 +2.4 Increased purchase of stock in Notes and Accounts the electronics business for 148.9 151.2 +2.2 shipment in FY2018
Slide 10: Consolidated B/S (2)
Consolidated B/S (2) （Unit：Yen in billion） As of As of March 31, March 31, Change 2017 2018 Total 588.6 638.0 +49.4 （Treasury Stock） ((5.9)) ((6.3)) ((0.4)) 〈Liability〉 364.0 396.0 +32.0 Notes and Accounts 77.2 77.1 (0.0) Payable Interest-bearing Increase of working capital 225.9 239.3 +13.4 and cap
Slide 11: FY2018 Forecast
FY2018 Forecast （Unit：Yen in billion） FY2018 Forecasts FY2017 1H FY2018 FY2018 －FY2017 Results Results Forecasts Forecasts Change Net Sales 740.0 360.0 750.0 +10.0 Operating Income 34.3 17.0 39.0 +4.7 Ratio of Operating Income to 4.6 4.7 5.2 +0.6 Net Sales（%） Share of profit of entities accounted fo
Slide 12: FY2018 Forecast
FY2018 Forecast Net sales is forecasted to be 750.0 billion yen which is an increase of 10.0 billion yen on a YoY basis owing to the increase of revenue of Electronics Business Company, despite the effect of the appreciation of the yen. Operating income and ordinary income are expected to increa
Slide 13: FY2018 Forecast Contributing Factors to Net Sales Change
FY2017 Results/ FY2018 Forecast Contributing Factors to Net Sales Change（year-on-year basis） Net Sales （Unit：Yen in billion） Effect of Reorganization Other of Domestic Automotive Electric Wire & Electronics Business (0.3) Effect of Cable Sales Business +4.0 Forex Effect of Company Rise in Copper Pow
Slide 14: FY2018 Forecast Contributing Factors to Operating Income Change
FY2017 Results/ FY2018 Forecast Contributing Factors to Operating Income Change（year-on-year basis） Operating Income （Unit：Yen in billion） Automotive Other Business Electronics Business +2.2 (1.4) Power & Tele- Effects of communication +3.7 Forex Business (2.8) +2.9 39.0 34.3 4.7 higher than FY2017
Slide 15: 2. By Segment
2. By Segment F Fujikura
Slide 16: Financial Records and Forecast by Segment
Financial Records and Forecast by Segment （Unit：Yen in billion） Net Sales Operating Income & Ratio of Operating Income to Net Sales 1H 2018 FY2018 1H 2018 FY2018 Segment FY2016 FY2017 FY2016 FY2017 Forecast Forecast Forecast Forecast Power & 20.3 22.4 9.7 22.1 Telecommunication 349.6 371.7 176.3 362
Slide 17: Power & Telecommunication Systems Company
Power & Telecommunication Systems Company In FY2017, net sales increased owing to the rise of copper price and the depreciation of the yen. Operating income increased because of the change in depreciation method in accounting in addition to the effects of forex. In FY2018, operating income is fo
Slide 18: Electronics Business Company
Electronics Business Company In FY2017, both net sales and operating income increased on a YoY basis owing to the strong demand for FPCs and connectors in smartphone application. In FY2018, both net sales and operating income are projected to increase because of the growth of FPC business in smart
Slide 19: Automotive Products Company
Automotive Products Company In FY2017, net sales increased on a YoY basis owing to the launch of a new car model. However, operating income decreased due to the rise in costs in East European operations in 1H. In FY2018, net sales is forecasted to be at the same level as the previous fiscal year o
Slide 20: Real Estate Business Company
Real Estate Business Company Real estate rental incomes continue to contribute to consolidated operating income. （Unit：Yen in billion） Net sales and Ratio of Operating Income to Net Sales Real Estate Ratio of operating income to net sales In FY2017, operating income increased owing to the real e
Slide 21: CAPEX and Depreciation
CAPEX and Depreciation （Unit：Yen in billion） FY2018 FY2016 FY2017 Forecasts CAPEX 45.6 42.5 47.0 （for manufacturing 37.0 40.1 45.0 business） （for real estate business） 8.5 2.4 2.0 Depreciation Cost 27.5 26.8 33.0 （for manufacturing 25.7 24.8 31.0 business） （for real estate business） 1.8 1.9 2.0 Note
Slide 22: Interest-bearing Debts, Net Financial Profit and Free Cash Flow
Interest-bearing Debts, Net Financial Profit and Free Cash Flow （Unit：Yen in billion） FY2016 FY2017 1st Half 2nd Half Fiscal Year 1st Half 2nd Half Fiscal Year Interest- bearing 229.7 225.9 225.9 241.0 239.3 239.3 Debts Net Financial (0.6) (0.6) (1.2) (0.2) (0.7) (1.0) Profit/Loss Free Cash (18.5) 4
Slide 23: 3. Return to Shareholders
F Fujikura 3. Return to Shareholders
Slide 24: Profit Return: Basic Policy of FY2020 Mid-term
Profit Return Basic Policy of FY2020 Mid-term Dividend payout ratio 20% or higher FY2017 Forecast Dividends 14.0 yen per share （Interim 7.0 yen per share, Year-end 7.0 yen per share, 4.0 billion yen） FY2016 Result 10.0 yen per share （Interim 5.0 yen per share, Year-end 5.0 yen per share） （4.0 ye
Slide 25: Profit Return: Basic Policy of FY2020 Mid-term
Profit Return Basic Policy of FY2020 Mid-term Dividend payout ratio 20% or higher FY2018 Forecast Dividends 16.0 yen per share （Interim 8.0 yen per share, Year-end 8.0 yen per share, 4.5 billion yen） （2.0 yen of increase compared with FY2017） Dividend Payout Ratio in FY2018 19.8% (References)
Slide 26: Contact and Special Notes
Special Notes: Statements in this presentation that relate to future results and events (including statements regarding Fujikura’s revenue and earnings guidance) are based on Fujikura’s current expectations. Actual results in future periods may differ materially from those currently expected because
Slide 27: Net Sales and Operating Income by Segment
【FY2017 Financial Results Appendix】 Net Sales and Operating Income by Segment Net Sales Records by Segment Unit: Yen in billion FY2016 FY2017 FY2018 Est. Full Full Full 1Q 2Q 3Q 4Q 1H 2H 1Q 2Q 3Q 4Q 1H 2H 1H 2H Year Year Year Power Systems 45.1 46.3 50.2 54.4 91.4 104.6 196.0 50.4 51.3 58.7 52.2 101