Harada Industry Co., Ltd. · TSE:6904
Harada Industry — FY2015 Earnings Presentation
41 slides from Harada Industry's earnings presentation, Jun 24, 2016
Slide 1: Financial Results Presentation Slides for the Year Ended in March, 2016
Financial Results Presentation Slides for the Year Ended in March, 2016 Harada Industry Co., Ltd. June 24, 2016 This slides contains forward looking statements based on prerequisites, forecasts and plans available as of June 24, 2016. 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: 3. Major Products 3
3. Major Products 3 Amplifier for Screen Type Antenna Film Antenna for DTV Noise Filter Other Integrated Type (Hidden) Antenna Can be integrated into roof, trunk lid or bumper. Support multi-band. 8
Slide 9: II. Financial Results for FY2015 and Financial Plan for FY2016 (Consolidated)
II. Financial Results for FY2015 and Financial Plan for FY2016 (Consolidated) 9
Slide 10: 1. Net Sales Trend
1. Net Sales Trend (Hundred millions of yen) 500 Europe North and Central Americas 432 Asia 397 400 400 42 Japan 364 38 39 31 299 147 300 277 132 125 23 21 118 231 217 214 217 88 19 16 200 101 178 12 16 56 9 106 117 112 79 71 66 91 13 18 62 52 19 23 34 38 100 141 135 124 123 120 124 122 102 92 96 95
Slide 11: 2. Summary of Consolidated Statement of Income
2. Summary of Consolidated Statement of Income (Millions of yen) FY2014 FY2015 Increase Previous year Current year Main factors in increase or or Composition Composition decrease decrease ratio (%) ratio (%) - Japan: 433 - Asia: 1,072 (currency effect : 1,272) 39,778 43,215 Net sales 3,437 - North a
Slide 12: 3. Profit Attributable to Owners of Parent Trend
3. Profit Attributable to Owners of Parent Trend (Millions of yen) 1,500 1,234 1,256 977 1,000 861 847 800 561 500 346 0 (64) (94) (500) (766) (1,000) FY2006 07 08 09 10 11 12 13 14 15 16 Current Next year Year (forecast) 12
Slide 13: 4. Changes in Operating Income
4. Changes in Operating Income (Millions of yen) Increase in gross profit on increase Decrease in gross profit on increase in net sales in cost of sales ratio associated with production transfer - Temporary logistic expenses (350) - Costs for production stability 788 (227) Increase in selling, gener
Slide 14: 5. Summary of Consolidated Balance Sheet
5. Summary of Consolidated Balance Sheet (Millions of yen) FY2014 Component FY2015 Component Increase Previous ratio Current ratio or year (%) year (%) decrease Current assets 26,612 78.1％ 25,764 76.9％ (847) Noncurrent assets 7,447 21.9％ 7,732 23.1％ 285 Total assets 34,060 100.0％ 33,497 100.0％ (562)
Slide 15: 6. Sales Breakdown by Reported Segments
6. Sales Breakdown by Reported Segments (FY2014 Actual vs. FY2015 Actual) FY2014 Europe Previous year (Millions of yen) 9.7% North Japan Previous Current and 30.3% year year Central Americas Asia Impact of 33.3% 26.7% Increase or Net FY2014 FY2015 foreign decrease change exchange Japan 12,032 12,465
Slide 16: 7. Sales Breakdown by Reported Segments
7. Sales Breakdown by Reported Segments (FY2015 Actual vs. FY2016 Plan) Europe FY2015 9.9% Current year (Millions of yen) Japan North Current and 28.8% Next year (forecasts) year Central Americas Asia Increase or 34.2% 27.1% FY2015 FY2016 decrease Japan 12,465 12,230 (234) Asia 11,703 11,283 (420) F
Slide 17: 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 (1,000) (2,000) (3,000) FY2006 07 08 09 10 11 12 13 14 15 Previous Current Year year FY2006 07 08 09 10 11
Slide 18: 9. Capital Expenditure Trend 10. Depreciation Trend
9. Capital Expenditure Trend (Millions of yen) 1,800 1,621 1,139 1,200 979 1,035 801 636 643 536 502 600 186 0 FY2006 07 08 09 10 11 12 13 14 15 10. Depreciation Trend (Millions of yen) 1,500 1,024 1,000 892 886 807 824 708 758 656 567 541 500 0 FY2006 07 08 09 10 11 12 13 14 15 18
Slide 19: 11. Quarterly Net Sales Trend 12. Quarterly Operating Income Trend
11. Quarterly Net Sales Trend 15,000 (Millions of yen) 12,000 10,686 11,006 10,554 11,465 10,025 9,820 10,021 10,189 8,904 9,249 9,000 6,000 3,000 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2013 FY2014 FY2015 12. Quarterly Operating Income Trend 1,100 (Millions of yen) 664 554 600 407 391 291 317 112 100 30
Slide 20: 13. Dividend and Stock Price Trend
13. Dividend and Stock Price Trend (Yen) 1,400 14.0 12.5 Dividends 1,200 12.0 Stock prices (highest) 10.0 10.0 1,000 Stock prices (lowest) 10.0 800 7.5 7.5 7.5 7.5 7.5 7.5 8.0 600 5.0 5.0 6.0 400 4.0 200 2.0 0 0.0 FY2006 07 08 09 10 11 12 13 14 15 16 Current Next year year （forecast） Stock Price Tre
Slide 21: 14. Foreign Exchange Rate Trend
14. Foreign Exchange Rate Trend US$ Stg.£ RMB 300 Current Rate (Yen) 24 250 233.65 228.01 19.35 20 18.34 17.36 200 13.90 16 146.44 187.20 150 131.77 173.80 178.73 12 126.45 119.82 139.57 100 119.12 120.62 120.60 8 114.15 92.07 105.40 50 91.00 81.45 86.58 4 77.73 0 0 FY2006 07 08 09 10 11 12 13 14 15
Slide 22: III. Issues for Management and Progress of Long-term Vision, NEXSTAGE 19
III. Issues for Management and Progress of Long-term Vision, NEXSTAGE 19 22
Slide 23: 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. 23
Slide 24: 2. Long-term Vision
2. Long-term Vision 1 Developed a long-term vision, NEXSTAGE 19 for FY2013 to FY2018 Developed a long-term business plan Address the strengthening of the corporate foundation and profitability. 24
Slide 25: 2. Long-term Vision
2. Long-term Vision 2 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 fou
Slide 26: 3. Long-term Business Plan 1
3. Long-term Business Plan 1 Two pillars that enable achieving our long-term vision Strengthen competitive advantages Establish an optimal corporate foundation 26
Slide 27: 3. Long-term Business Plan 2
3. Long-term Business Plan 2 Strengthen competitive advantages 1) Improve product competitiveness 2) Improve capability for providing services 27
Slide 28: 3. Long-term Business Plan 3
3. 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 29: 3. Long-term Business Plan 4
3. 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 30: 3. Long-term Business Plan 5
3. 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 30
Slide 31: 3. Long-term Business Plan 6
3. 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 32: 3. Long-term Business Plan 7
3. 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 33: 3. Long-term Business Plan 8
3. 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 34: 4. Achievement 1
4. Achievement 1 Reinforced engagements with clients; clarified roles and responsibilities of respective divisions/departments 1 July 2013: Restructured divisions/departments • Dissolved the vertical group-centric structure and shifted to a divisional structure – Established the Automotive Devic
Slide 35: 4. Achievement 1
4. Achievement 1 Reinforced engagements with clients; clarified roles and responsibilities of respective divisions/departments 2 June 2015: Abolished Automotive Devices Business and Corporate Management • Streamlined the organization April 2016: Reorganized indirect departments • Separated R&D
Slide 36: 4. Achievement 2
4. 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 tra
Slide 37: 4. Achievement 3
4. Achievement 3 Formulated “Cost Structure Improvement Plan,” a plan to catch-up on performance results to achieve the long-term business plan We target becoming the top automotive antenna company standing out with our high profitability, quality and productivity. Our core focus is to greatly r
Slide 38: 5. Quantitative Targets for FY2018 (Consolidated)
5. Quantitative Targets for FY2018 (Consolidated) Net sales Over 45 billion yen Operating income margin Over 10.0％ 38
Slide 39: Reference. Automobile Manufacturing Trend
Reference. Automobile Manufacturing Trend 39
Slide 40: Automobile Manufacturing Trend (Results and Forecasts)
Automobile Manufacturing Trend (Results and Forecasts) Japan (Thousands) Asia (Thousands) 9,500 50,000 45,000 42,969 9,000 40,000 8,673 35,872 8,685 35,000 8,500 30,000 8,000 25,000 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 North and Central Americas Europe (Thous
Slide 41: Forward-looking statements notice
This slides contains forward looking statements based on prerequisites, forecasts and plans available as of June 24, 2016. 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