JVCKENWOOD Corporation · TSE:6632
JVCKENWOOD — Q2 FYE3/2020 Earnings Presentation
36 slides from JVCKENWOOD's earnings presentation, Nov 1, 2019
Slide 1: Results and Forecast Briefing, Second Quarter FYE March 2020
Translation for Reference Only JVCKENWOOD Results and Forecast Briefing Second Quarter of Fiscal Year Ending March 2020 （IFRS) November 1, 2019 JVCKENWOOD Corporation Copyright © 2019 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Business Domains
Business Domains *All figures in this document are prepared in accordance Media Service Sector (MS) Others with International Financial Reporting Standards (IFRS). ■Media Business ■DX* Business, etc. * Digital Transformation ・Solutions/Lifestyle/Brand video cameras, headphones, Automotive Sector (AM
Slide 3: 1. Overview of 2Q Financial Results for FYE3/'20
1. Overview of 2Q Financial Results for FYE3/’20 2. Full-Year Earnings Forecast for FYE3/’20 3. Major Initiatives
Slide 4: 1. Overview of 2Q Financial Results for FYE3/'20
1. Overview of 2Q Financial Results for FYE3/’20 2. Full-Year Earnings Forecast for FYE3/’20 3. Major Initiatives
Slide 5: Financial Results for 2Q (1-2Q) of FYE3/'20 - Highlights
Financial Results for 2Q(1-2Q) of FYE3/’20 - Highlights Revenue of the JVCKENWOOD Group as a whole declined, but was at 100% of the previous year’s level when excluding the impacts of foreign exchange. Core operating income of the JVCKENWOOD Group as a whole declined, due to profit decreases in
Slide 6: Trends in Quarterly Results
Financial Results for 2Q(1-2Q) of FYE3/’20 - Trends in Quarterly Results Core Operating Revenue Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 FYE3/’20 100.0 1,000 5.0 50 83.7 80.9 76.5 77.6 80.0 800 72.6 75.5 72.6 73.6 73.1 4.0 40 68.9 3.9 2.9 3.0 600 60.0 2.5 30 Revenue 2.3 40.0 400 2.0 20 1
Slide 7: Results by Sector
Financial Results for 2Q(1-2Q) of FYE3/’20 - Results by Sector （Billion yen） 2Q(1-2 Q) 2Q(1-2Q) YoY change YoY change Factors FYE3/’19 FYE3/’20 (amount) (percentage) * Revenue of the AM Sector as a whole decreased, despite an increase in revenue of the Aftermarket Revenue 86.1 78.3 -7.7 -9.0% Busine
Slide 8: Consolidated Revenue (by Sector)
Financial Results for 2Q(1-2Q) of FYE3/’20 - Consolidated Revenue (by Sector) (Billion yen) Consolidated Revenue (by Sector) 1,600 160.0 -6.0 ＋4.5 -2.5 +1.7 -0.0 MS Others 1,400 140.0 AM PS （DX Business, etc.） 149.1 146.7 1,200 120.0 Impacts of foreign exchange 1,000 100.0 0 800 FYE3/’19 FYE3/’20 2Q
Slide 9: Quarterly Results (AM Sector)
Financial Results for 2Q(1-2Q) of FYE3/’20 - Quarterly Results (AM Sector) Core Operating Revenue Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 FYE3/’20 50.0 500 47.2 5.0 50 Aftermarket 43.3 43.0 43.0 41.8 41.7 40.2 40.8 40.1 OEM 40.0 400 38.3 4.0 40 3.0 30.0 300 3.0 30 2.0 2.2 1.7 1.8 20.0 2
Slide 10: Quarterly Results (PS Sector)
Financial Results for 2Q(1-2Q) of FYE3/’20 - Quarterly Results (PS Sector) Core Operating Revenue Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 FYE3/’20 25.0 250 5.0 50 Professional Systems 21.3 Communication Systems 20.0 200 19.0 180 4.0 40 17.4 17.5 16.4 16.2 14.7 15.4 15.0 150 13.4 3.0 30
Slide 11: Quarterly Results (MS Sector)
Financial Results for 2Q(1-2Q) of FYE3/’20 - Quarterly Results (MS Sector) Core Operating Revenue Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 FYE3/’20 25.0 250 5.0 50 Entertainment Media 20.0 200 4.0 40 16.3 15.7 14.5 14.6 15.0 15.0 150 14.0 14.2 13.6 14.2 13.6 3.0 30 10.0 100 20 2.0 0.8 0.
Slide 12: Consolidated Revenue (by Region)
Financial Results for 2Q(1-2Q) of FYE3/’20 - Consolidated Revenue (by Region) (Billion yen) 1,600 160.0 ＋2.7 -0.1 -2.4 Americas -0.２ +0.2 -2.5 Japan Europe Asia/ Others China 1,400 140.0 149.1 Impacts of foreign 146.7 1,200 120.0 exchange 1,000 100.0 0 800 FYE3/’19 FYE3/’20 2Q(1-2Q) 2Q(1-2Q) 12
Slide 13: Trends in Consolidated Revenue by Region
Financial Results for 2Q(1-2Q) of FYE 3/’20 - Trends in Consolidated Revenue by Region Revenue (Billion yen) FYE3/’18 FYE3/’19 FYE3/’20 100.0 1,000 Others Asia/China Europe 1.3 Americas 80.0 800 9.3 1.5 1.5 Japan 1.2 1.6 9.6 1.2 1.3 1.4 1.4 9.5 10.1 1.2 10.2 8.9 9.3 14.6 9.5 9.7 9.3 12.5 60.0 600 15
Slide 14: Consolidated Core Operating Income (by Sector)
Financial Results for 2Q(1-2Q) of FYE 3/’20 - Consolidated Core Operating income (by Sector) (Billion yen) Consolidated Revenue (by Sector) 40 4.0 3.0 30 +0.4 -0.3 Others AM （DX Business, etc.） 20 2.0 -2.6 MS 3.4 PS +1.7 2.6 1.0 10 0 FYE3/’19 FYE3/’20 2Q(1-2Q) 2Q(1-2Q) 14
Slide 15: Consolidated Profit/Loss (Summary)
Financial Results for 2Q(1-2Q) of FYE 3/’20 - Consolidated Profit/Loss (Summary) Other income/expenses and foreign exchange gain/loss improved, reflecting a decrease in the foreign exchange loss. （Billion yen） 2Q(1-2Q) 2Q(1-2Q) YoY Change FYE3/'19 FYE3/'20 Core Operating Income* 3.36 2.63 -0.73 Ot
Slide 16: Financial Position Summary
Financial Results for 2Q(1-2Q) of FYE 3/’20 - Financial Position Summary As a result of the application of IFRS 16 Leases, total assets and total liabilities increased 8,400 million yen and 9,800 million yen respectively, and equity decreased 1,400 million yen on the balance sheet at the beginning
Slide 17: Cash Flow Summary
Financial Results for 2Q(1-2Q) of FYE 3/’20 - Cash Flow Summary Net cash provided by operating activities increased, reflecting an increase in depreciation expenses and improvement in working capital. Net cash used in investing activities decreased due to the absence of M&A investments. Net ca
Slide 18: 2. Full-Year Earnings Forecast for FYE3/'20
1. Overview of 2Q Financial Results for FYE3/’20 2. Full-Year Earnings Forecast for FYE3/’20 3. Major Initiatives
Slide 19: Full-year Earnings Forecast for FYE3/'20
Full-year Earnings Forecast for FYE3/’20 Revenue for the first six months of FYE3/’20 was in line with period-start projections and operating income exceeded projections. In 3Q and thereafter, strong sales of the AM Sector and the Aftermarket Business are expected to continue in the domestic mar
Slide 20: 3. Major Initiatives
1. Overview of 2Q Financial Results for FYE3/’20 2. Full-Year Earnings Forecast for FYE3/’20 3. Major Initiatives
Slide 21: Impacts of Issues Related to China, Export Regulations on Korea, and Consumption Tax Increase
Impacts of Issues Related to China, Export Regulations on Korea, and Consumption Tax Increase Impacts of the slowdown of China’s economy and the U.S.-China trade conflict China’s economy is slowing down more rapidly than initial projections. As a result, profit/loss of JKHL (former Shinwa Intern
Slide 22: Expansion of Deployment of Dashcams in All Directions
Expansion of Deployment of Dashcams in All Directions Expand the Aftermarket, OEM, and Telematics businesses in all directions to acquire the position as No.1 manufacturer in the domestic dashcam market. Work to achieve adoption of in-line factory installation and expansion of solution/service p
Slide 23: Evolving Dashcams
Evolving Dashcams CASE Safe driving support/services using telematics Dynamic management Driving Driving diagnosis guidance Driver assistance Driving Link with management insurance Video recording Full HD video recording 2034x1296 pixel 1920x1080 pixel recording Debut of recording Built-in driver as
Slide 24: Strategy for Dashcams - Technology Development
Strategy for Dashcams - Technology Development Development of platforms for 5G communications/edge AI devices Expand dashcam business Sale at a Telematics Fleet OEM insurance management market Communication camera platform Develop new markets Small surveillance Vehicle system Body-worn camera
Slide 25: AM Sector: Aftermarket (Japan)
AM Sector: Aftermarket (Japan) In November, launching DRV-MR745 dual-camera dashcam, which supports rear-view video recording, in an effort to expand the lineup in response to rapid market expansion. Newly equipped with tinted window see-through capability to allow vehicles with a tinted rear wi
Slide 26: AM Sector: Aftermarket (Americas)
AM Sector: Aftermarket (Americas) Selected as regular items in the dashcam and rear-view camera category by Best Buy in the U.S. to be deployed at all of its 800 stores. Modified specifications to meet the needs of the U.S. market by providing Wi-Fi connection to PCs and smartphones and detachin
Slide 27: PS Sector: Communications Systems Business
PS Sector: Communications Systems Business Due to revenue growth and Following the NX-5000 series and the establishment of sustainable NX-3000 series, which are being well profitability at EFJT, the Group’s U.S. received, launched the NX-1000 series communication system subsidiary, of profession
Slide 28: PS Sector: Communications Systems Business (Japan)
PS Sector: Communications Systems Business (Japan) Achieved sales expansion of digital convenience radios, driven by growth in demand for renting digital radio systems used at global sports events, and robust sales of disaster prevention digital radio systems to local governments. In December, l
Slide 29: PS Sector: Professional Systems Business
PS Sector: Professional Systems Business Held solution fairs at seven major Expanding orders received for cities nationwide, attracting more full-function digital conference than 2,000 visitors and offering systems that support smooth prospects for increasing orders operation of assembly meeting
Slide 30: PS Sector: Healthcare
PS Sector: Healthcare Exhibiting ExoCounter high- Jointly developing cognitive accuracy exosome measurement function testing technology system at BioJapan 2019 and with Osaka University aimed other domestic and overseas at early diagnosis of dementia using Gazefinder gaze- exhibitions to promote
Slide 31: MS Sector: Media Business
MS Sector: Media Business GY-HC900, the first iteration of the Launching LX-NZ3 4K HDR ready Connected Cam series of professional home theater projector for users camcorders based on the concept of to enjoy high-resolution 4K “offering connectivity with high- videos in their living rooms in reso
Slide 32: MS Sector: Media Business
MS Sector: Media Business In October, launched three models of portable power stations with different battery capacities through joint development with Jackery, a company with an extensive sales track record mainly in North America. Venturing into a new market through the launch of new product i
Slide 33: MS Sector: Media Business
MS Sector: Media Business We will work to increase applications of LCOS* devices, which have been produced for use in projectors, and expand sales as optical communications devices, for which demand is expected to grow with the spread of 5G. Expand sales and significantly improve profits of the
Slide 34: MS Sector: Entertainment Business
MS Sector: Entertainment Business Entry into game business Victor Entertainment Games, launched in June 2019, will release “THE KING OF FIGHTERS for GIRLS,” the first iteration of its game apps, in 2H. “THE KING OF FIGHTERS for GIRLS” Promising works to be released in 2H “Go with the Flow:” Ta
Slide 35: DX Business
DX Business JVCKENWOOD’s dashcam with communication capabilities will be adopted by F-driving dashcam/telematics services for contractors of fleet insurance of Mitsui Sumitomo Insurance. It will be the first deployment of a dual-camera dashcam model with a vehicle interior recording capability in
Slide 36: Forward-looking statements disclaimer
The expressions contained in this presentation referring to the Company's future plans, intentions and expectations are categorized as future forecast statements. Such statements reflect management expectations of future events, and accordingly, are inherently susceptible to risk, uncertainty and ot