Sanken Electric Co., Ltd. · TSE:6707
Sanken Electric — FY March 2021 Earnings Presentation
37 slides from Sanken Electric's earnings presentation, May 12, 2021
Slide 1: Financial Results Presentation
Financial Results Presentation Fiscal Year ended March 2021 May 12, 2021 Sanken Electric Co., Ltd. 0
Slide 2: Table of Contents
Table of Contents Financial Results • Financial Results FY March 2021 • Guidance for FY March 2022 Medium-Term Management Plan 2021 (New) • Management Policy • Growth Strategies Sanken Electric Co., Ltd. 1
Slide 3: Financial Results FY March 2021
Financial Results FY March 2021 Sanken Electric Co., Ltd. 2
Slide 4: Takeaways
Takeaways ⚫ Full-year sales were 156.8 billion yen, above guidance announced in February. ⚫ 4Q sales by market topped guidance announced in February in the Semi Devices Business with 4% for Automotive and 9% for White Goods, and were in line with plan for Industrial & Consumer and Power Systems. ⚫ W
Slide 5: Consolidated Results for FY March 2021
Consolidated Results for FY March 2021 (Billions of Yen) FY Mar. 20 FY Mar. 21 YoY change 1H 2H Full Year 1H 2H Full Year Amount % Sales 78.3 81.9 160.2 68.1 88.7 156.8 -3.4 -2.1 Semi Devices 67.9 70.1 138.0 60.0 77.2 137.2 -0.7 -0.5 Power Systems 10.4 11.8 22.2 8.1 11.4 19.6 -2.7 -12.0 Operating Pr
Slide 6: Consolidated Results: FY March 2021 (Non-GAAP basis)
Consolidated Results: FY March 2021 (Non-GAAP basis) * Business results excluding non-recurring items as determined by the Company and other adjustments (Billions of Yen) FY Mar. 2021 1Q 2Q 3Q 4Q Full Year Sales 31.6 36.5 41.6 47.0 156.8 Operating Profit (Loss) -0.1 1.0 2.6 4.3 7.8 Ordinary Profit (
Slide 7: Consolidated Sales Trend by Market
Consolidated Sales Trend by Market 4Q results were as follows: ・Automotive: Up 8% QoQ and YoY, reflecting growth in shipments as orders rapidly recovered from 3Q ・White Goods: Up 14% QoQ and 12% YoY, driven by brisker demand in Korea and increased adoption of inverters in China ・Industrial & Consume
Slide 8: Guidance for FY March 2022
Guidance for FY March 2022 Sanken Electric Co., Ltd. 7
Slide 9: Guidance for FY March 2022
Guidance for FY March 2022 Basis for setting FY2022 full-year forecast and future outlook ＜Rationale＞ ⚫ Strong performance forecast to continue in 1H against a backdrop of rapidly recovering orders at the end of previous fiscal year. The automotive and white goods markets appear bullish, but there a
Slide 10: Semi Devices: Market-by-Market Outlook
Semi Devices: Market-by-Market Outlook Automotive Market • Global auto production for 2021 was assumed to be around 87 million units, but there are increasing risks to push that figure down due to the impact of semiconductor shortages. • Our customers are reviewing the supply chains. Inventory turno
Slide 11: Semi Devices: Market-by-Market Outlook
Semi Devices: Market-by-Market Outlook White Goods Market • All air conditioners produced for the Chinese market finished shifting to inverters in July 2020 due to the unification of energy-saving standards. From July 2021 only products complying with the new standards can be sold, so each company h
Slide 12: Semi Devices: Market-by-Market Outlook
Semi Devices: Market-by-Market Outlook Industrial Market • The industrial market has reached a recovery stage on the back of a trend toward increased capital expenditure. In addition to demand for servers continuing from the previous fiscal year, demand and orders for factory automation are increasi
Slide 13: Guidance for FY March 2022
Guidance for FY March 2022 (Billions of Yen) FY Mar. 21 FY Mar. 22 Y on Y Changes 1H 2H Full Year 1H 2H Full Year Amount % Sales 68.1 88.7 156.8 80.8 75.2 156.0 -0.8 -0.5 Semi Devices 60.0 77.2 137.2 79.3 73.7 153.0 +15.8 +11.5 Former Units ー ー ー 1.5 1.5 3.0 ー ー Power Systems 8.1 11.4 19.6 ― ― ― ー ー
Slide 14: Semi Devices Guidance by Market
Semi Devices Guidance by Market ・Automotive is conceived to continue strongly in 1H. 2H includes modest adjustment risk. ・White goods for Korea will continue strongly and China is forecast to firm as the inverter conversion rate rises. ・For industrial and consumer, 2H adjustment is projected, but se
Slide 15: Medium-Term Management Plan 2021 (New)
Medium-Term Management Plan 2021 (New) Sanken Electric Co., Ltd. 14
Slide 16: New Medium-Term Management Plan: Premise for Disclosure
New Medium-Term Management Plan: Premise for Disclosure New Medium-Term Management Plan’s Concept and Premise for Disclosure ⚫ With regard to consolidated numerical targets, the medium-term plan establishes KPIs focusing on profitability, growth potential, and capital efficiency. ⚫ In terms of enhan
Slide 17: Overview of Medium-Term Management Plans
Overview of Medium-Term Management Plans Medium-Term Medium-Term 2017 Management Plan 2018 Management Plan 2021 ⚫ Begin restructuring ⚫ Execute restructuring ⚫ Complete restructuring ⚫ Capital increase ⚫ Launch development ⚫ Realize growth via third-party reforms and growth Strategies allocation at
Slide 18: Initiatives to Enhance Corporate Value: Restructuring
Initiatives to Enhance Corporate Value MTMP 2018 MTMP 2021 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Restructuring Phase 1 Restructuring Phase 2 ◆ Restructuring ・Exit unprofitable device products ・Domestic plant and overseas ・Complete domestic ・Exit non-strategic markets in unit subsidiary closures product
Slide 19: Management Vision: Our Goal
Management Vision: Our Goal Sanken Electric Co., Ltd. 18
Slide 20: Core Elements of Medium-Term Management Plan 2021
Core Elements of Medium-Term Management Plan 2021 Business Portfolio Power Modules, Power Devices, and Sensors Growth Sales growth outpacing semiconductor market growth KPI FY March 2024 Consolidated Targets • Operating profit margin: At least 13% • Net Sales: At least 170 billion yen • ROE: At leas
Slide 21: Business Portfolio: By Module Market
Business Portfolio ⚫ Growth in the three pillars of power modules, power devices, and sensors. ⚫ Strengthen power modules by increasing sales for automobiles and industrial equipment. FY Mar. 2020 FY Mar. 2024 FY Mar. 2027 Share of Sales Power Power Power Power Modules Power Modules Power Modules De
Slide 22: Growth: Scenario for Consolidated Growth in MTMP 2021
Growth: Scenario for Consolidated Growth in MTMP 2021 ⚫ Target sales growth outpacing market growth for Santen Group overall ⚫ Power semiconductor market headed for full-fledged uptrend on tailwinds from eco-friendly vehicles and digital transformation Semiconductor market scale (1) Growth rate by m
Slide 23: Sanken Core: Growth Strategies
Sanken Core: Growth Strategies Sanken Electric Co., Ltd. 22
Slide 24: MTMP 2021: Long-term Sales Growth Outlook by Market
MTMP 2021: Long-term Sales Growth Outlook by Market MTMP 2021 Long-term outlook White Goods White Goods Sustainable growth looks promising via shift to white goods with inverters Automotive New products for xEVs to grow from FY March 2024 via shift to electric vehicles Automotive Industrial Expansio
Slide 25: Automotive Market
Automotive Market ⚫ Sales growth, mainly for digital ICs for ADASs and modules for xEVs ⚫ Also sustained level of sales for internal combustion engine (ICE) applications (Millions of vehicles) Global Auto Market Forecast Auto sales by application 120 100 Pure EV 80 Comfort PHEV 60 xEV ADAS HEV 40 xE
Slide 26: Automotive Market: Power modules for Traction Motors
Automotive Market: Power modules for Traction Motors ⚫ For power modules for EV traction motors, move up outlook for peak sales from orders placed to 2025 as shift to EVs accelerating ⚫ Increased adoption to be major pillar for automotive module growth ⚫ Plan to release in-house modules with SiC in
Slide 27: White Goods Market
White Goods Market ⚫ Expect the ratio of inverter-driven air conditioners to rise through 2026, and global market to keep growing thereafter ⚫ Now expect the ratio of inverter-driven washing machines will rise earlier to meet growing demand for eco-friendly models and large models Global Forecast fo
Slide 28: White Goods Market: Expansion of SPP Development Products
White Goods Market: Expansion of SPP Development Products ⚫ Launch of SPP development products (platform development) to help raise profitability ・APTC and Headquarters to co-develop new processes that realize chip shrinking ・SPDC and Headquarters to co-develop new packages for next-generation IPMs
Slide 29: Industrial and Consumer Markets
Industrial and Consumer Markets 1. Grow via Strategic Partnership with STMicroelectronics ⚫ Expand sales and sales channels via jointly developed products Commercial air conditioning equipment, robot servo power modules 2. Cultivate New Industrial Markets via Joint Development with Allegro ⚫ Promote
Slide 30: New Products' Share of Sales
New Products’ Share of Sales ⚫ Set a target line of at least 15% for new products’ share of sales. ⚫ To exceed 25% temporarily as the results of development under MTMP 2018 materialize during MTMP 2021. Even after that, will maintain at 15% or higher. Condition for starting development New products’
Slide 31: Acceleration of Development Reforms
Acceleration of Development Reforms Accelerate PDCA Cycle at 3 Centers to Cut Development Cycle in Half ・Mobilize production staff and Technical Center New product planning technology and development ・Realize new products via platform development Production Development Center Evaluation and Product
Slide 32: Acceleration of Development Reforms
Acceleration of Development Reforms Production Development Center Advanced Technology Promotion Center Sanken Group Plants (Headquarters) (established on the premises of Ishikawa Sanken) (Ishikawa, Yamagata, Fukushima, Dalian) ・Follow-up on new production line startups ・R&D and planning for elementa
Slide 33: To Realize Growth Strategies
To Realize Growth Strategies Sanken Electric Co., Ltd. 32
Slide 34: Reorganization Aiming to Realize Growth Strategies
Reorganization Aiming to Realize Growth Strategies Portfolio rebuilding, organizational frameworks to realize growth and profitability Headquarters Marketing Headquarters Business Corporate Semiconductor Headquarters Business Promotion Power module Headquarters Power Device Headquarters ⚫ Marketing
Slide 35: Initiatives for ESG and SDGs
Initiatives for ESG and SDGs • Development of technologies and products that help preserve the global environment -Reduction of CO2 (energy-saving technologies for shift to xEVs, white goods) Environment -Enhancement of water use efficiency (develop IPMs for water-saving washing machines) • Promotio
Slide 36: Financial Results Presentation Fiscal Year ended March 31, 2021
Financial Results Presentation Fiscal Year ended March 31, 2021 Sanken Electric Co., Ltd. 35
Slide 37: Notice on Forward-looking Statement
Notice on Forward-looking Statement This presentation contains forward-looking statements with respect to the Company’s and its group affiliates’ future results, plans and policies, strategies, performance goals and scheduled targets, and the management’s views and judgments that are not yet firmly
Sanken Electric — FY March 2021 Earnings Presentation on 6ix