Slide 1: Financial Results Presentation Slides for the Year Ended in March, 2015
Financial Results Presentation Slides for the Year Ended in March, 2015 Harada Industry Co., Ltd. June 23, 2015 This slides contains forward looking statements based on prerequisites, forecasts and plans available as of June 23, 2015. Actual results may differ materially from forward looking stateme
Slide 2: Contents
Contents I. Corporate Overview 1. Corporate Profile ........................................................................................................................................... 4 2. Global Network ........................................................................................
Slide 3: I. Corporate Overview
I. Corporate Overview HARADA
Slide 4: 1. Corporate Profile
1. Corporate Profile ◆ Established March 1958 ◆ Headquarters Omori Bellport B-4F, 26-2 Minami-Ohi, 6-Chome Shinagawa- ku, Tokyo, Japan ◆ Capital Stock 2,019 million yen ◆ Consolidated Overseas: 10 Subsidiaries (Sales Companies: U.S.A., U.K., Thailand, etc.) (Plants: China, Philippines, Vietnam and M
Slide 5: 2. Global Network
2. Global Network HARADA INDUSTRY OF AMERICA, INC. HARADA INDUSTRIES (EUROPE) LIMITED HARADA INDUSTRIES (MEXICO), HARADA EUROPE R&D CENTRE S.A. DE C.V. DALIAN HARADA INDUSTRY CO., LTD. SHANGHAI HARADA NEW HARADA INDUSTRIES VIETNAM LIMITED AUTOMOTIVE ANTENNA CO., LTD. HARADA Asia-Pacific Ltd. TAIWAN
Slide 6: 3. Major Products 1
3. Major Products 1 LPA (Low Profile Antenna) Support all kinds of radio (analog AM+FM, digital (DAB), satellite), telematics application (GNSS, mobile phone). Support multi-band. Rod Type Antenna Support all kinds of radio (analog AM+FM, digital (DAB), satellite), digital TV (DTV) and so forth. Sup
Slide 7: 3. Major Products 2
3. Major Products 2 Coaxial Cables Routing Design, Design & Development to Manufacturing & Assembly of Components STP Cables Transfer massive data at high speed. In-Spoiler Type Antenna Support multi-band. 7
Slide 8: II. Financial Results for FY2014 and Financial Plan for FY2015
II. Financial Results for FY2014 and Financial Plan for FY2015 (Consolidated) 8
Slide 9: 1. Net Sales Trend
1. Net Sales Trend (Hundred millions of yen) 450 Europe 410 North and Central Americas 397 400 Asia 364 36 38 350 Japan 31 299 300 133 277 23 132 21 118 250 224 231 217 214 217 88 20 19 200 101 16 12 16 178 51 56 9 106 130 79 71 66 91 150 7 13 62 18 52 19 23 34 38 100 144 141 135 124 123 50 102 120
Slide 10: 2. Summary of Consolidated Statement of Income
2. Summary of Consolidated Statement of Income (Millions of yen) FY2013 Composition FY2014 Composition ratio ratio Increase or Previous Current decrease year (%) year (%) Net sales 36,470 100.0％ 39,778 100.0％ 3,308 Operating income 1,337 3.7％ 867 2.2％ (470) Ordinary income 1,412 3.9％ 981 2.5％ (430)
Slide 11: 3. Net Income Trend
3. Net Income Trend (Millions of yen) 1,500 1,234 1,256 1,112 977 1,000 861 847 561 500 346 350 0 (64) ᇞ 500 (766) ᇞ 1,000 FY2005 06 07 08 09 10 11 12 13 14 15 Current Next year Year (forecast) 11
Slide 12: 4. Changes in Operating Income
4. Changes in Operating Income (Millions of yen) Decrease in gross Increase in gross profit on increase in profit on increase in cost of sales ratio Increase in selling, general and net sales administrative expenses - Increase in distribution expenses - Increase in R&D expenses (435) 795 (830) 1,337
Slide 13: 5. Summary of Consolidated Balance Sheet
5. Summary of Consolidated Balance Sheet (Millions of yen) FY2013 Component FY2014 Component Increase Previous ratio Current ratio or year (%) year (%) decrease Current assets 25,287 78.0％ 26,612 78.1％ 1,325 Noncurrent assets 7,124 22.0％ 7,447 21.9％ 323 Total assets 32,411 100.0％ 34,060 100.0％ 1,648
Slide 14: 6. Sales Breakdown by Reported Segments (FY2013 vs FY2014)
6. Sales Breakdown by Reported Segments (FY2013 Actual vs. FY2014 Actual) FY2013 Europe Previous year (Millions of yen) 8.5% North Previous Current Japan and 33.9% year year Central Americas Asia Impact of 32.5% Increase or Net 25.1% FY2013 FY2014 foreign decrease change exchange Japan 12,360 12,032
Slide 15: 7. Sales Breakdown by Reported Segments (FY2014 vs FY2015 Plan)
7. Sales Breakdown by Reported Segments (FY2014 Actual vs. FY2015 Plan) Europe FY2014 9.7% Current year (Millions of yen) North Japan Current and 30.3% Next year (forecasts) Central year Americas Asia 33.3% 26.7% Increase or FY2014 FY2015 decrease Japan 12,032 10,964 (1,068) FY2015 Asia 10,630 13,00
Slide 16: 8. Consolidated Cash Flow Trend
8. Consolidated Cash Flow Trend (Millions of yen) 5,000 Cash flows from operating activities 4,000 Cash flows from investing activities Cash flows from financing activities 3,000 2,000 1,000 0 ᇞ 1,000 ᇞ 2,000 ᇞ 3,000 FY2005 06 07 08 09 10 11 12 13 14 Previous Current Year year FY2005 06 07 08 09 10
Slide 17: 9. Capital Expenditure Trend / 10. Depreciation Trend
9. Capital Expenditure Trend 1,600 (Millions of yen) 1,200 1,139 979 1,035 801 800 666 636 643 536 502 400 186 0 FY2005 06 07 08 09 10 11 12 13 14 10. Depreciation Trend 1000 (Millions of yen) 892 886 807 824 800 708 758 674 656 567 541 600 400 200 0 FY2005 06 07 08 09 10 11 12 13 14 17
Slide 18: 11. Quarterly Net Sales Trend / 12. Quarterly Operating Income Trend
11. Quarterly Net Sales Trend (Millions of yen) 15,000 12,000 10,686 10,025 9,820 10,021 9,205 8,904 9,249 9,000 8,333 7,303 7,338 6,000 3,000 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2012 FY2013 FY2014 12. Quarterly Operating Income Trend (Millions of yen) 500 411 407 391 400 291 317 300 243 220 200 112 1
Slide 19: 13. Dividend and Stock Price Trend
13. Dividend and Stock Price Trend (Yen) 1,400 25.0 1,200 20.0 Dividends Stock prices (highest) 20.0 1,000 Stock prices (lowest) 800 15.0 12.5 10.0 10.0 600 10.0 7.5 7.5 7.5 7.5 7.5 400 5.0 5.0 5.0 200 0 0.0 2006/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 Current Next year year （forecast） S
Slide 20: 14. Foreign Exchange Rate Trend
14. Foreign Exchange Rate Trend US$ Stg.£ RMB 300 Current Rate (Yen) 24 19.35 250 233.65 228.01 20 203.71 17.36 200 13.90 16 131.77 146.44 187.20 150 126.45 119.82 173.80 12 139.57 100 118.06 120.62 8 119.12 114.15 105.40 91.00 92.07 50 81.45 77.73 86.58 4 0 0 FY2005 06 07 08 09 10 11 12 13 14 300 A
Slide 21: III. Issues for Management and Progress of Long-term Vision, NEXSTAGE 19
III. Issues for Management and Progress of Long‐term Vision, NEXSTAGE 19 21
Slide 22: 1. Operating Environment
1. Operating Environment Increase in automobile manufacturing volume Development in automobile media, communications and ITS Global expansion by Japanese automakers Many opportunities are in store for exponential growth going forward. 22
Slide 23: 2. Recent Developments
2. Recent Developments Acquired the automotive antenna business as well as overseas bases from Nippon Antenna Co., Ltd. Solidified relationships with major Japanese automakers Resolved to concentrate management resources in automotive antenna businesses 23
Slide 24: 3. Long-term Vision
3. Long-term Vision NEXSTAGE 19 (For Fiscal Years 2013 to 2018) To be a global solution provider with strengthened product competitiveness, capability for providing services and capability for taking the lead in the competition as well as to enhance the corporate value with optimized corporate found
Slide 25: 4. Long-term Business Plan 1
4. Long-term Business Plan 1 Two pillars that enable achieving our new long-term vision Strengthen competitive advantages Establish an optimal corporate foundation 25
Slide 26: 4. Long-term Business Plan 2
4. Long-term Business Plan 2 Strengthen competitive advantages 1) Improve product competitiveness 2) Improve capability for providing services 26
Slide 27: 4. Long-term Business Plan 3
4. Long-term Business Plan 3 Strengthen Competitive Advantages 1) Improve product competitiveness 2) Improve capability for providing services - Strengthen cost competitiveness - Develop new products and upgrade existing products - Ensure adequate quality of products - Establish optimal supply chain
Slide 28: 4. Long-term Business Plan 4
4. Long-term Business Plan 4 Strengthen Competitive Advantages 1) Improve product competitiveness 2) Improve capability for providing services - Improve capabilities in collecting and analyzing information - Strengthen capabilities in research and planning - Enhance capabilities in proposing product
Slide 29: 4. Long-term Business Plan 5
4. Long-term Business Plan 5 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management 29
Slide 30: 4. Long-term Business Plan 6
4. Long-term Business Plan 6 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Reinforce collaboration among the Group - Improve and streamline working environment and operations - Enhance develo
Slide 31: 4. Long-term Business Plan 7
4. Long-term Business Plan 7 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Establish a highly reliable brand as “the one and only automotive antenna supplier in the world with a global networ
Slide 32: 4. Long-term Business Plan 8
4. Long-term Business Plan 8 Establish an optimal corporate foundation 1) Reinforce organizational strength 2) Fortify the brand 3) Pursue group synergy by applying group management - Enhance headquarters functions - Maximize synergy within the Group by explicitly dividing work among each Group Comp
Slide 33: 5. Achievement (1)
5. Achievement (1) Reinforced engagements with clients; clarified roles and responsibilities of respective divisions/departments July 2013: Restructured divisions/departments • Dissolved the vertical group-centric structure and shifted to a divisional structure – Established the Automotive Devic
Slide 34: 5. Achievement (2)
5. Achievement (2) Established “ brand” as a pillar for gaining competitive advantage Developed a brand statement to promote recognition of HARADA as “the one and only specialist automotive antenna manufacturer in the world with a global network” • Registered as a trademark • Plans to use this t
Slide 35: 5. Quantitative Targets for FY2018 (Consolidated)
5. Quantitative Targets for FY2018 (Consolidated) Net sales Over 45 billion yen Operating income margin Over 10.0％ 35
Slide 36: Reference. Automobile Manufacturing Trend
Reference. Automobile Manufacturing Trend 36
Slide 37: Automobile Manufacturing Trend (Results and Forecasts)
Automobile Manufacturing Trend (Results and Forecasts) Japan Asia (Thousands) (Thousands) 9,500 50,000 9,030 45,000 42,613 9,000 40,000 8,500 8,292 34,716 35,000 8,000 30,000 7,500 25,000 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 North and Central Americas Europe
Slide 38: Forward-looking statements notice
This slides contains forward looking statements based on prerequisites, forecasts and plans available as of June 23, 2015. Actual results may differ materially from forward looking statements described here due to risks and variable factors associated to global economic conditions, a competitive env