Jvckenwood Corporation · TSE:6632

Jvckenwood — Q3 FYE March 2017 Earnings Presentation

28 slides from Jvckenwood's earnings presentation, Feb 1, 2017

  1. Slide 1: JVCKENWOOD Results and Forecast Briefing

    JVCKENWOOD Results and Forecast Briefing Third Quarter of Fiscal Year Ending March 2017 February 1, 2017 JVCKENWOOD Corporation Copyright © 2017 JVCKENWOOD Corporation. All rights reserved.

  2. Slide 2: Business Domains

    Business Domains Media Service Sector (MS) Others Automotive Sector (AM)  Consumer Business  Media Business • Car navigation systems • Solutions / products • Car audio systems video cameras, headphones, projectors, etc. 1.6% • Display audio systems • Dashcams  Entertainment Business Content / con

  3. Slide 3: Agenda

    1. Overview of Financial Results for 3Q of FYE3/’17 2. Revisions of Full-year Earnings Forecast and Dividend Forecast for FYE3/’17 3. Initiatives to Be Taken in 4Q and Onward

  4. Slide 4: Overview of Financial Results for 3Q of FYE3/'17

    1. Overview of Financial Results for 3Q of FYE3/’17 2. Revisions of Full-year Earnings Forecast and Dividend Forecast for FYE3/’17 3. Initiatives to Be Taken in 4Q and Onward

  5. Slide 5: Financial Results for 3Q (1-3Q) of FYE3/'17 - Summary

    Financial Results for 3Q (1-3Q) of FYE3/’17 - Summary  Net sales increased due to higher sales in the AM and MS sectors, although there was the negative impact of foreign exchange fluctuations.  Operating income increased substantially due to the improvement in profit and loss in the AM and MS sec

  6. Slide 6: Trends in Quarterly Results

    Financial Results for 3Q of FYE3/’17 – Trends in Quarterly Results Net sales Operating FYE3/’15 FYE3/’16 FYE3/’17 income (Billion yen) (Billion yen) 100.0 Net sales 10.0 1,000 100 Operating income 77.7 79.4 794 78.1 781 777 80.0 800 75.2 752 8.0 80 68.9 715 71.5 72.1 721 70.7 707 689 67.3 673 66.5 6

  7. Slide 7: (1-3Q) Results by Sector

    Financial Results for 3Q (1-3Q) of FYE3/’17 – Results by Sector (Billion yen) （億円） '16/3期 1-3Q '17/3期 1-3Q FYE3/’16 FYE3/’17 YoY change YoY change 要因 Factor 3Q累計 3Q累計 前期差 (amount) 前期増減率 (percentage) * Sales increased in the OEM Business due to higher 売上高 Net sales 102.7 1,027 106.9 1,069 +4.2 +42 4%

  8. Slide 8: Consolidated Net Sales (by Sector) YoY Change

    Financial Results for 3Q (1-3Q) of FYE3/’17 – Consolidated Net Sales (by Sector) YoY Change (by Sector, after Excluding YoY Change (by Sector) the Effects of Foreign Exchange) (Billion yen) (Billion yen) 2,400 240.0 2,400 240.0 Effects of AM PS foreign exchange MS Others MS Others AM PS +4.2 -6.0 21

  9. Slide 9: FYE3/'17 Quarterly Results (AM Sector)

    Financial Results for 3Q FYE3/’17 – Quarterly Results (AM Sector) Operating Net sales income FYE3/’15 FYE3/’16 FYE3/’17 (Billion yen) (Billion yen) OEM 38.2 40.0 400 36.3 4.0 40 Consumer 35.9 35.6 32.8 32.9 33.5 33.0 29.0 29.0 29.9 30.0 300 3.0 30 20.0 200 2.0 20 1.3 13 10.0 100 1.0 10 0.7 7 7 0.7 7

  10. Slide 10: FYE3/'17 Quarterly Results (PS Sector)

    Financial Results for 3Q FYE3/’17 – Quarterly Results (PS Sector) Operating Net sales income FYE3/’15 FYE3/’16 FYE3/’17 (Billion yen) (Billion yen) 400 Healthcare 40 40.0 4.0 Professional Systems Communications Systems 300 30.0 30 3.0 25.2 22.8 20.8 22.1 20.4 2.2 22 20.1 200 17.6 18.4 17.9 20 20.0 1

  11. Slide 11: FYE3/'17 Quarterly Results (MS Sector)

    Financial Results for 3Q FYE3/’17 – Quarterly Results (MS Sector) Operating Net sales income FYE3/’15 FYE3/’16 FYE3/’17 (Billion yen) (Billion yen) Entertainment 40.0 400 4.0 40 Media 30.0 300 3.0 30 22.1 18.3 18.3 18.7 20.0 200 17.8 16.9 17.3 17.8 15.7 21 2.1 2.0 20 15.3 15.6 1.1 1.1 10.0 100 11 11

  12. Slide 12: (1-3Q) FYE3/'17 Sales by Region

    Financial Results for 3Q (1-3Q) FYE3/’17 – Sales by Region YoY Change (by Region, after Excluding YoY Change (by Region) the Effects of Foreign Exchange) (Billion yen) (Billion yen) 2,400 240.0 2,400 240.0 Japan Americas Asia China -6.8 Europe Effects of Others Asia +17.6 -5.6 Others foreign exchang

  13. Slide 13: Quarterly Trends in Sales (by Region)

    Financial Results for 3Q of FYE3/’17 – Quarterly Trends in Sales (by Region) FYE3/’15 FYE3/’16 FYE3/’17 (Billion yen) 1,000 Others 100 Asia / China Europe Americas 80 800 1.4 14 1.4 14 1.2 12 Japan 1.2 12 1.2 12 108 1.2 12 100 12.1 121 1.3 13 10.8 10.0 1.2 12 1.0 10 12.1 121 1.0 10 115 11.5 9 0.9 99

  14. Slide 14: Consolidated Operating Income (by Sector)

    Financial Results for 3Q (1-3Q) of FYE3/’17 – Consolidated Operating Income (by Sector) YoY Change (by Region, after Excluding YoY Change (by Sector) the Effects of Foreign Exchange, etc.) (Billion yen) (Billion yen) 30 3.0 30 3.0 Others 20 2.0 MS Others 20 2.0 MS AM PS 10 1.0 +1.0 +0.0 10 1.0 +0.2

  15. Slide 15: Consolidated Operating Income (by Factor)

    Financial Results for 3Q (1-3Q) of FYE3/’17 – Consolidated Operating Income (by Factor)  The effects of foreign exchange were slightly greater than expected, but other factors such as an increase in retirement benefit expenses were within the period-start projection.  The income increase from exis

  16. Slide 16: Consolidated Ordinary Income and Net Income Attributable to Owners of Parent

    Financial results for 3Q (1-3Q) of FYE3/’17 – Consolidated Ordinary Income and Net Income Attributable to Owners of Parent  Ordinary income improved due mainly to the increase in operating income. However, net loss attributable to owners of parent increased as a result of recording an extraordinary

  17. Slide 17: Non-operating Income and Expenses and Extraordinary Income (Loss)

    Financial Results for 3Q (1-3Q) of FYE3/’17 – Non-operating Income and Expenses and Extraordinary Income (Loss) (百万円) (Billion yen) 1-3Q FYE3/’16 '16/3期 3Q累計 1-3Q FYE3/’17 '17/3期 3Q累計 YoY Change 前期差 営業外収支 income and expenses Non-operating △(2.510) 2,510 △(1.753) 1,753 +0.758 758 営業外収益 income Non-ope

  18. Slide 18: Balance Sheet Summary

    Financial Results for 3Q of FYE3/’17 – Balance Sheet Summary (Billion yen) (億円) ’16/3期末 End of FYE3/’16 ’17/3期 3Q末 End of 3Q FYE3/’17 増減 Change 総資産 Total assets 256.3 2,563 257.3 2,573 +1.0 +10 有利子負債 debts Interest-bearing 69.2 692 71.8 718 +2.6 +26 ネットデット Net debt 264 26.4 368 36.8 +104 +10.4 Net d

  19. Slide 19: Cash Flow Summary

    Financial Results for 3Q (1-3Q) of FYE3/’17 – Cash Flow Summary  Cash flow from operating activities decreased due mainly to the increase in working capital on higher net sales.  Cash flow from investing activities decreased due to the increase in cash outflow for the purchase of property, plant a

  20. Slide 20: (Reference) Corrections to Earnings Results

    (Reference) Corrections to Earnings Results  In the course of conducting a tax management review, an overstatement of corporate enterprise tax was discovered for the period from 3Q of FYE3/’12 to 2Q of FYE3/’17 in a cumulative total of about 1.3 billion yen. Accordingly, corrections were applied re

  21. Slide 21: Revisions to Full-year Earnings Forecast and Dividend Forecast

    1. Overview of Financial Results for 3Q of FYE3/’17 2. Revisions to Full-year Earnings Forecast and Dividend Forecast for FYE3/’17 3. Initiatives to Be Taken in 4Q and Onward

  22. Slide 22: Revisions of Full-year Earnings Forecast and Dividend Forecast for FYE3/'17

    Revisions of Full-year Earnings Forecast and Dividend Forecast for FYE3/’17  The operating income forecast was kept unchanged on the back of strong performance in the AM and MS sectors, although an operating loss was recorded in i-ADAS related business.  The ordinary income forecast was revised do

  23. Slide 23: Factors for Revision of Full-year Earnings Forecast

    Factors for Revision of Full-year Earnings Forecast – Recording of Operating Loss and Extraordinary Loss  Operating loss  AM Sector Posted an operating loss of about 1.5 billion yen due to an increase in development cost for a new i-ADAS product for a specific customer.  Extraordinary loss  U.S.

  24. Slide 24: Initiatives to Be Taken in 4Q and Onward

    1. Overview of Financial Results for 3Q of FYE3/’17 2. Revisions to Full-year Earnings Forecast and Dividend Forecast for FYE3/’17 3. Initiatives to Be Taken in 4Q and Onward

  25. Slide 25: Priority Measures for 4Q and Onward – AM Sector

    Priority Measures for 4Q and Onward – AM Sector  Expand business by maintaining/increasing the domestic market share and expanding overseas business mainly in Asia for dealer-installed option products in the OEM Business.  Expand orders for factory-installed option products, centering on display a

  26. Slide 26: Priority Measures for 4Q and Onward – PS Sector

    Priority Measures for 4Q and Onward – PS Sector  Increase receipt of orders for systems and introduce and expand sales of new radio system products in the Communications Systems Business.  Increase receipt of orders for solutions through integration of sales and engineering functions in the Profes

  27. Slide 27: Priority Measures for 4Q and Onward – MS Sector

    Priority Measures for 4Q and Onward – MS Sector  Maintain solid performance in the consumer business and strengthen competitiveness in the solutions business by launching new products for projectors and professional video cameras.  Expand business by leveraging the brands owned by JVCKENWOOD, incl

  28. Slide 28: 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

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