Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — H1 FY22/23 Earnings Presentation
49 slides from Johnson Electric's earnings presentation, November 2022
Slide 1: Investor Briefing November 2022 Interim Results
Investor Briefing November 2022 Interim Results For the period ended 30 September 2022
Slide 2: FY22/23 Investor Briefing Interim Results
FY22/23 Investor Briefing Interim Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Development Information
Slide 3: Overview
3 Overview • • • • A global leader in • • • • Listed on the • • • • Workforce of over electric motors, Hong Kong 35,000 across actuators, motion Stock Exchange 22 countries subsystems and since 1984 related electro- mechanical components Automotive Industry Components Products Products and Group Gro
Slide 4: History & Development
4 History & Development Sales US$ 3.4bn Early Years 1982 - 1999 2000 - 2022 3.1bn Hong Kong HK listed company True global 2.1bn family business leveraging China to multinational supply the world 1.7bn 1.1bn 677m 251m 126m 16m 54m Fiscal 1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 202
Slide 5: Stepping Up to Drive a Sustainable Future
Stepping Up 5 to Drive a Sustainable Future
Slide 6: Strategies
6 Strategies Focusing on Investing in Building a Aligning design Making selective Developing and serving technology resilient global and production acquisitions that retaining a diverse customers whose innovation to manufacturing processes with the bring and talented team products are provide unique
Slide 7: FY22/23 Investor Briefing Interim Results
FY22/23 Investor Briefing Interim Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Development Information
Slide 8: Why Invest in Johnson Electric
Why Invest in 8 Johnson Electric Innovative motion solutions for consumers’ needs today – and for the future Winning market traction Globally diversified sales and for sustainable growth world-class customer base Improving quality of life Global operating for everyone and creating footprint a sustai
Slide 9: Innovative Solutions for Proliferating Applications
Innovative Solutions 9 for Proliferating Applications Automotive Electrification & Environment Today Subsystems and components that enable Zero- and low-carbon electrification, optimize solutions to combat For & the thermal management, and climate change provide comfort and safety Smart Home & IOT E
Slide 10: Diversified Sales
10 Diversified Sales By Major Lines of Business By Destination
Slide 11: Diversified Customer Base
Diversified Customer Base 11 World-class Customers Across Diversified Industries 500 1300 Automotive Non-Auto Customers Customers Disclaimer: The customer tradenames and trademarks demonstrated in this presentation pack are the properties of the respective customers. Their usage herein is for illust
Slide 12: Carbon Reduction: APG's Growth Opportunity
Carbon Reduction 12 APG’s Growth Opportunity NEV 2021- 2028 CAGR 26%
Slide 13: JE Automotive Products Well Positioned for Growth in NEV
JE Automotive Products 13 Well Positioned for Growth in New Energy Vehicles (NEV) BEV PHEV JE BLDC Shift- by-wire Applications Suitable module parts for All Vehicle Types Powder Metal Thermal HEV Mild HEV HVAC Large Management xEV Pump 48V system Generator carrier gear CFM Oil pump Power Seat lift g
Slide 14: JE Automotive Products Engineered for Tomorrow
JE Automotive Products 14 Engineered for Tomorrow…Compatible with Today BEV PHEV ITMS JE Applications for Planetary Hybrid & BEV BEV assemblies HEV Mild HEV ESS PHEV HEV 48V system Generator blower Mild HEV e-Turbo Charging port Fuel pump actuator e-Shift ETC (for 2 speed E-axle) Resolver EGR FD ger
Slide 15: Well Positioned to Capitalize on the Automotive Market Move
Well Positioned 15 to Capitalize on the Automotive Market Move Our Net Business Opportunities for NEV Source: Johnson Electric analysis – indicative based on current available market intelligence and estimates
Slide 16: Examples of Recent Automotive Business Wins for NEV
Examples of 16 Recent Automotive Business Wins for New Energy Vehicles Braking Applications Our innovative products are winning Brake booster, e-parking lock, e-parking brake and electric vacuum pump for safety business on major NEV platforms and shorter braking distance, lower weight, and energy re
Slide 17: Autonomous Driving & Connectivity
17 Autonomous Driving & Connectivity Smart Smart Steering & Vision Closure Cabin Braking Window lift and sunroof motor Seat adjuster motor Steering-by-wire motor LiDAR motor EMB motor Brake-by-wire Sensor Power door washing opening system motor Power lift tailgate / frunk motor Rotating seat motor S
Slide 18: IPG Growth Supported by Megatrends
IPG Growth 18 Supported by Megatrends Smart Home and Internet of Things Electrification & Environment Proliferating E-commerce & Industrial Touching Human Needs Healthcare Improving Performance Energy efficient, smaller, lighter, safer, controllable, connected
Slide 19: Winning Market Traction
Winning 19 Market Traction Medium-term sales outlook 5-9% US$ 5.3bn CAGR US$ 3.4bn New business wins US$ 4.4bn and opportunities 2-4% 3-4% Global Global are set to sustain GDP vehicle growth growth growth FY21/22 Actual FY26/27 Forecast Note: Estimated total Group sales outlook based on customer ord
Slide 20: Global Operating Footprint
Global Operating Footprint 20 Operating in 22 Countries across 4 Continents Manufacturing sites Sales & support offices Engineering sites Manufacturing, sales & support, and engineering sites
Slide 21: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 21 Johnson Electric’s Evolution CO2 and energy targets Our environmental strategy and policies address: Climate change Our use of natural resources * including water and raw materials Pollution prevention Waste minimization * As available and feasible for each site
Slide 22: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 22 Johnson Electric’s Evolution One Johnson around the world, a great company and a great place to work! We are a truly global team We thrive on innovation We believe that hiring the bound together by our and excel in execution. right people and putting shared values. We We are co
Slide 23: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 23 Johnson Electric’s Evolution We seek to identify social needs where we can benefit both Johnson Electric and the local JETC students at community study and play in China and Mexico For example, the Johnson Electric Technical College, founded in 2004, helps lift families out of
Slide 24: FY22/23 Investor Briefing Interim Results
FY22/23 Investor Briefing Interim Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Development Information
Slide 25: Highlights
25 Highlights Group sales Gross profit Adjusted EBITA Net profit attributable to shareholders 1,770 US$ million 355 US$ million 111 US$ million 56 US$ million up 6% compared to first half or 20.0% of sales (compared compared to US$138 million 6.21 US cents per share, fully of FY21/22. Up 11% to US$3
Slide 26: Financial Highlights
Financial Highlights (E JOHNSON 26 S ELECTRIC First half of First half of US$ million FY22/23 FY21/22 Sales 1,769.9 1,674.1 Gross profit 354.5 357.4 Gross margin 20.0% 21.3% EBITA ' 85.6 134.0 EBITA adjusted * 111.2 138.4 EBITA adjusted margin 6.3% 8.3% Profit attributable to shareholders 55.9 93.2
Slide 27: Financial Highlights
Financial Highlights [E JOHNSON 27 @ ELECTRIC USS million 30 Sep 2022 31 Mar 2022 Cash 298.2 345.4 Total debt 471.7 490.8 Net debt ° (173.5) (145.4) Enterprise value “ 4,127.2 1,470.2 Key Financial Ratios 30 Sep 2022 31 Mar 2022 Enterprise value to EBITDA adjusted ° 24 3.0 Gross debt ° to EBITDA adj
Slide 28: FY22/23 Investor Briefing Interim Results
FY22/23 Investor Briefing Interim Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Development Information
Slide 29: Group Sales Changes
Group Sales Changes 29 First Half of FY22/23 vs. First Half of FY21/22 US$ million 204 3 Reported 1,674 1,770 (21) sales up 6% (90) Sales grew 11% on a constant currency basis First half of APG IPG Acquired Currency First half of FY21/22 volume / mix volume / mix business movements FY22/23 sales and
Slide 30: APG Sales Growth vs. Light Vehicle Production
APG Sales Growth vs. Light Vehicle Production 30 First Half of FY22/23 vs. First Half of FY21/22 Outperformance in all regions compared to the changes in light vehicle production In Asia, growth was led by closure and thermal management. In Europe, thermal management and mechatronic oil pumps. In th
Slide 31: APG Multi-Year Sales Changes vs. Light Vehicle Production
APG 31 Multi-Year Sales Changes vs. Light Vehicle Production APG has consistently outperformed light vehicle production This reflected APG’s focus on enabling the shift to increased electrification, reduced emissions, and improved safety and comfort
Slide 32: IPG Sales Growth by Region
IPG Sales Growth by Region 32 First Half of FY22/23 vs. First Half of FY21/22 Decline in sales to customers engaged in China’s export markets due to COVID lockdowns, chip shortages and reduced demand for some home-centric products This was partly offset by growth across several segments in Europe an
Slide 33: IPG Multi-Year Sales Trend
IPG 33 Multi-Year Sales Trend IPG responded decisively to rapidly changing circumstances over the past few years by launching products in new growth areas. These helped mitigate the decline in demand for home-centric products in the first half of fiscal year FY22/23
Slide 34: Adjusted Net Profit
Adjusted Net Profit 34 First Half of FY22/23 vs. First Half of FY21/22 Higher volumes, inflation recovery and cost reductions benefited profit, partly offset by higher raw material and operating costs Unfavourable currency movements impacted profit
Slide 35: From Reported to Adjusted Net Profit
35 From Reported to Adjusted Net Profit 1. Unrealized gains or losses relating to exchange rate movements are significant non-cash items. Restructuring and other related costs are not part of the routine operations of the Group. This adjusted measure of net profit excluding non-cash foreign exchange
Slide 36: Working Capital and CAPEX
36 Working Capital and CAPEX Trade and Other Receivables Trade and Other Payables US$ 900 80 Days US$ Days 1,000 120 million 800 sales million purchases 70 900 outstanding* 100 outstanding** 700 70 60 800 114 68 69 107 600 700 99 50 80 500 600 40 500 60 400 300 30 400 300 40 200 20 200 20 100 10 100
Slide 37: Free Cash Flow from Operations
37 Free Cash Flow from Operations * Capital expenditure, net of subsidies & proceeds from disposal of fixed assets
Slide 38: Utilization of Free Cash Flow
38 Utilization of Free Cash Flow
Slide 39: Dividend Per Share
39 Dividends HK cents 60 50 51 51 51 48 49 50 46 Dividend Per Share 40 34 34 34 34 34 34 34 30 34 17 20 17 ** 10 17 17 17 17 17 17 14 15 16 12 - FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19* FY19/20* FY20/21* FY21/22* FY22/23* Interim dividend Final dividend * Scrip dividend offered as an alterna
Slide 40: FY22/23 Investor Briefing Interim Results
FY22/23 Investor Briefing Interim Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Development Information
Slide 41: Acquisition of 80% stake in Pendix GmbH in October 2022
Acquisition of 41 80% stake in Pendix GmbH in October 2022 Based in Germany, Well-established Pendix designs, technology-driven manufactures, and player in the e-bike brings to market industry complete electric Enables Johnson cargo bikes and Electric to expand electric drives for our e-mobility bic
Slide 42: FY22/23 Investor Briefing Interim Results
FY22/23 Investor Briefing Interim Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Development Information
Slide 43: Outlook (1/2)
43 Outlook (1/2) Challenging near-term outlook for global manufacturing businesses Inflation in much of the world at a four-decade high Europe’s economies are being shaken by an energy crisis and a war Pandemic control measures in China IPG Weaker consumer confidence in several product a
Slide 44: Outlook (2/2)
44 Outlook (2/2) Johnson Electric's fundamental strengths have enabled us to navigate our way through past recessions and market disruptions successfully Recognised market leadership across a broad range of motion technologies that are critical enablers for increased electrification, lower emiss
Slide 45: FY22/23 Investor Briefing Interim Results
FY22/23 Investor Briefing Interim Results Group Why Invest Key Operating Overview in Johnson Financial Results Electric? Highlights New Outlook Supplemental Development Information
Slide 46: Profitability Review
Profitability Review 46 First Half of FY22/23 vs. First Half of FY21/22
Slide 47: Profitability Review
Profitability Review 47 First Half of FY22/23 vs. First Half of FY21/22
Slide 48: Average Exchange Rates
Average Exchange Rates 48 First Half of FY22/23 vs. First Half of FY21/22
Slide 49: Disclaimer
49 Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric. Words such as “outlook”, “expects”, “anticipates”, “inte
Johnson Electric Holdings — H1 FY22/23 Earnings Presentation on 6ix