Japan Aviation Electronics Industry, Limited · TSE:6807

Japan Aviation Electronics Industry — 1H FY2016 Earnings Presentation

29 slides from Japan Aviation Electronics Industry's earnings presentation, Oct 26, 2016

  1. Slide 1: Financial Results for 1H of FY2016 and Prospects for FY2016

    Financial Results for 1H of FY2016 and Prospects for FY2016 October 26, 2016 6807 Japan Aviation Electronics Industry, Ltd. Copyright ©2016. Japan Aviation Electronics Industry. Ltd

  2. Slide 2: Agenda

    Agenda Technology to Inspire Innovation Ⅰ. Financial Results for 1H of FY2016 Ⅱ. Prospects and Strategy for FY2016 Copyright ©2016. Japan Aviation Electronics Industry. Ltd 2

  3. Slide 3: Financial Results for 1H of FY2016

    Technology to Inspire Innovation Ⅰ. Financial Results for 1H of FY2016 （April 2016～September 2016） Copyright ©2016. Japan Aviation Electronics Industry. Ltd 3

  4. Slide 4: 1-1. Net Sales and Incomes

    1-１. Net Sales and Incomes Technology to Inspire Innovation Projections FY2015 FY2016 Sequential Change (announced Jul. 2016) 1H 2H 1H 2H FY2015/1H FY2016 Projections Change （％） Net Sales 971 824 899 75 109% 930 -31 Operating Income 124 55 41 -14 75% 52 -11 (to Net Sales) 12.8% 6.7% 4.6% Ordinary In

  5. Slide 5: Quarterly Net Sales

    Quarterly Net Sales Technology to Inspire Innovation （JPY in 100 millions) 532 457 Net Sales Ordinary Operating Income 367 367 Income 46 48 27 23 14 9 6 3 2015/3Q 2015/4Q 2016/1Q 2016/2Q Copyright ©2016. Japan Aviation Electronics Industry. Ltd 5

  6. Slide 6: 1-2. Net Sales by Market Segment

    1-2. Net Sales by Market Segment Technology to Inspire Innovation FY2015 FY2016 Sequential Change 1H 2H 1H 2H FY2015/1H FY2016 Component Growth Ratio Ratio Mobile Devices 425 282 395 44% 113 140% Automotive 342 343 315 35% -28 92% Industrial & Infrastructure 127 119 123 14% 4 104% Others 77 80 66 7%

  7. Slide 7: 2-1. Connector Business

    2-1. Connector Business Technology to Inspire Innovation Sales by Market Segment （JPY in 100 millions) 1,000 Sales：112% 876 (of 2015 2H) 799 ▶ Mobile Devices： Increased as projected 714 by sales to North Mobile 425 American customers and Devices 395 Chinese smartphone 282 customers ▶ Automotive： Inc

  8. Slide 8: 2-1. Connector Business: Operating Income

    2-1. Connector Business Technology to Inspire Innovation Operating Income Operating Income： ▲ JPY 0.7 billion （JPY in 100 millions) (from 2015 2H) 200 17.1% ▶ Influenced by JPY 13.2 appreciation from the Operating Margin previous quarter 150 9.9% ▶ Changed in product mixture（which used more 100 8.0%

  9. Slide 9: 2-2. UIS Business

    2-2. UIS Business Technology to Inspire Innovation （JPY in 100 millions） 50 Sales by Market Segment 41 39 Sales：96％ 37 (of 2015 2H) ▶ Automotive： Achieved the same level as 25 the previous quarter for in- Automotive 24 vehicle capacitive touch 25 24 panel ▶ Industrial & Infrastructure： Decreased fro

  10. Slide 10: 2-2. UIS Business: Operating Income

    2-2. UIS Business Technology to Inspire Innovation Operating Income Operating Income： （JPY in 100 millions） ▲JPY0.1 billion 10 (from 2015 2H) ▶ Increased in depreciation of 13.9% Operating Margin capital investment (new 12.6% production line and prototype production) for in- 9.8% vehicle capacitive

  11. Slide 11: 2-3. Aerospace Business

    2-3. Aerospace Business Technology to Inspire Innovation Sales by Market Segment （JPY in 100 millions） 80 Sales：116％ (of FY2015 1H) 68 ▶ Public and private sectors 60 59 increased on year-over-year basis despite higher demand 50 seasonality in the second- 34 half year 40 32 ▶ Industrial & Infrastruc

  12. Slide 12: 2-3. Aerospace Business: Operating Income

    2-3. Aerospace Business Technology to Inspire Innovation Operating Income Operating Income： （JPY in 100 millions） + JPY 0.4 billion (from FY2015 1H) ▶ Reduced deficit by half with 0 -2 sales increase -4 -8 ▶ Did not reach breakeven in 1H due to slower sales -3.3% growth -6.8% Operating Margin -15.9%

  13. Slide 13: 3. Capital Investment & Depreciation

    3. Capital Investment & Depreciation Technology to Inspire Innovation （JPY in 100 millions） 300 250 224 220 200 Capital 120 Investment 150 Production 97 192 100 Machines/Dies 50 86 115 Land/Building 0 11 32 5 50 89 88 100 179 Depreciation, 150 others （Projection : 190） 200 200 250 1H FY2015 FY2015 1

  14. Slide 14: Prospects and Strategy for FY2016

    Technology to Inspire Innovation Ⅱ. Prospects and Strategy for FY2016 （April 2016～March 2017） Copyright ©2016. Japan Aviation Electronics Industry. Ltd 14

  15. Slide 15: 1-1. Prospect for FY2016

    1-1. Prospect for FY2016 Technology to Inspire Innovation Projections FY2015 FY2016 (announced Jul. 2016) FY2016 1H Projections Year/Year Change Projections Change （％） Net Sales 1,795 899 2,070 275 115% 2,100 -30 Operating Income 179 41 125 -54 70% 160 -35 (to Net Sales) 10.0% 4.6% 6.0% 7.6% Ordinar

  16. Slide 16: Prospect for 2H of FY2016

    Prospect for 2H of FY2016 Technology to Inspire Innovation ▶ Prospect for 2H  Expect significant increase in total sales by new product launched in 2nd quarter in Mobile Devices area, and with steady sales growth of Automotive and Industrial & Infrastructure segments  Plan significant profit incre

  17. Slide 17: 1-2. Prospect for Sales by Business Segment

    1-2. Prospect for Sales by Business Segment Technology to Inspire Innovation FY2015 FY2016 1H Projections Year/Year Change （％） Connector 1,589 799 1,858 269 117% UIS 80 37 80 0 100% Aerospace 118 59 125 7 106% Others 8 3 7 -1 91% Total 1,795 899 2,070 275 115% ※ Amounts less than 100 millions JPY ar

  18. Slide 18: 1-3. Prospect for Sales by Market Segment

    1-3. Prospect for Sales by Market Segment Technology to Inspire Innovation FY2015 FY2016 1H Projections Year/Year Change （％） Mobile Devices 707 395 990 283 140% Automotive 685 315 670 -15 98% Industrial & Infrastructure 246 123 260 14 106% Others 157 66 150 -7 97% Total 1,795 899 2,070 275 115% ※ Am

  19. Slide 19: 2. Strategy ① Mobile Devices

    2. Strategy ① Mobile Devices Technology to Inspire Innovation ▶ Significantly expand businesses for USB Type-CTM DX07 Series connectors, Chinese smartphones, and North American customers ▶ DX07 series connectors and harnesses • Further expand product line-up • Started Volume shipment to key Sales of

  20. Slide 20: 2. Strategy ① Mobile Devices

    2. Strategy ① Mobile Devices Technology to Inspire Innovation ▶ Significantly expand businesses for USB Type-CTM DX07 Series connectors, Chinese smartphones, and North American customers ▶ Chinese smartphones • Achieved sales expansion to fast growing successful customers • Expand production capacit

  21. Slide 21: 2. Strategy ② Automotive

    2. Strategy ②Automotive Technology to Inspire Innovation ▶ Capture Japanese car maker demand  Make sure to capture projects for new model cars  Approach to their R&D activities outside Japan  Further promote in-vehicle capacitive touch panel business ▶ Focus on Europe, China and other Asian marke

  22. Slide 22: 2. Strategy ③ Industrial & Infrastructure

    2. Strategy ③Industrial & Infrastructure Technology to Inspire Innovation ▶ Sales expansion by share increase with current customers  Connector sales to robot, servomotor, machine tool applications in FA market  Coaxial and optical connectors for telecommunication equipment ▶ New product launch an

  23. Slide 23: 3. Product Development for Middle Term Growth

    3. Product Development for Middle Term Growth Technology to Inspire Innovation ▶ Develop new technology for IoT era by exploiting JAE’s core technology across three business lines Structural Health Monitoring (Participate in monitoring project of “Gunkanjima”) Hashima in Nagasaki, Japan (“Gunkanjima

  24. Slide 24: 3. Product Development for Middle Term Growth

    3. Product Development for Middle Term Growth Technology to Inspire Innovation ▶ Develop new technology for IoT era by exploiting JAE’s core technology across three business lines Spread of high-definition graphics（4K・8K）makes AOC market expand (AOC : Active Optical Cable) ＴＶ VR Broadcast （Virtual r

  25. Slide 25: 3. Product Development for Middle Term Growth

    3. Product Development for Middle Term Growth Technology to Inspire Innovation ▶ Develop new technology for IoT era by exploiting JAE’s core technology across three business lines Technology for environmental friendly vehicle High current Quick charger plug connector/harness JEVS G 105 １Pin Water Pr

  26. Slide 26: Technology to Inspire Innovation

    Technology to Inspire Innovation

  27. Slide 27: Cautionary Statement

    <Cautionary Statement> The plans, strategies & results forecasts and targets for our company and our consolidated affiliates (hereinafter JAE) noted in these materials are forecasts and targets as of October 26, 2016, and include risks and uncertainties. The targets noted in these materials are not

  28. Slide 28: [Reference] Prospect for Sales by Business Segment

    [Reference] Prospect for Sales by Business Segment Technology to Inspire Innovation FY2015 FY2016 Year/Year Change Sequential Change 1H 2H 1H 2H FY2015/ 1H FY2016 2H FY2015/1H FY2016 Component Growth Growth Ratio Rate Rate Connector 876 714 799 89% -76 91% 86 112% UIS 41 39 37 4% -4 91% -2 96% Aeros

  29. Slide 29: [Reference] Prospect for Income by Business Segment

    [Reference] Prospect for Income by Business Segment Technology to Inspire Innovation FY2015 FY2016 Year/Year Change Sequential Change 1H 2H 1H 1H FY2015/1H FY2016 2H FY2015/1H FY2016 （％） （％） （％） Growth Rate Growth Rate Connector 150 17.1% 71 9.9% 64 8.0% -86 42% -7 90% UIS 6 13.9% 5 12.6% 4 9.8% -2

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