Fujikura Ltd · TSE:5803
Fujikura — FY2019 Earnings Presentation
29 slides from Fujikura's earnings presentation, Jun 10, 2020
Slide 1: FY2019 Financial Results
FY2019 Financial Results June 10, 2020
Slide 2: Contents
Contents 1. FY2019 Financial Results 2. By Segment 3. FY2020 Forecast 4. Shareholder Return 1
Slide 3: 1. FY2019 Financial Results
1. FY2019 Financial Results 2
Slide 4: The difference between Forecasted and Financial Results (FY2019)
The difference between Forecasted and Financial Results(FY2019 ) (Unit : Yen in billion) FY2019 Forecasted-FY2019 FY2019 (Forecasted on Feb.5) Change Net Sales 670.0 672.3 +2.3 Operating Income 8.0 3.3 (4.6) Ratio of Operating Income to Net Sales(%) 1.2 0.5 (0.7) Share of other comprehensive income
Slide 5: Summary of the difference between Forecasted and Financial Results (FY2019)
Summary of the difference between Forecasted and Financial Results(FY2019 ) Both net sales and operating income decreased. This is due to the new coronavirus infection(COVID-19) caused a temporary suspension of operations at bases in China, Europe and America, and valuation loss on copper hedging
Slide 6: FY2019 Contributing Factors to Operating Income Change (against Forecasted)
FY2019 Contributing Factors to Operating Income Change (against Forecasted) Operating Income (Unit : Yen in billion) Effects of COVID-19 (1.2) Power & Telecommunication Systems Electronics Business Automotive Business Products (2.2) (0.7) (0.5) 8.0 3.3 4.6 lower than FY2019 Forecasted FY2019 Forecas
Slide 7: Contributing Factors to Net Income Change (Forecasted vs Results)
FY2019 Forecasted / FY2019 Results Contributing Factors to Net income(loss) attributable to owners of parent Change Net income(loss) attributable to owners of parent (Unit : Yen in billion) Decrease of (7.5) OP Impairment loss on (4.6) optical related business assets （7.9） Impairment loss on wire ha
Slide 8: FY2019 Financial Results
FY2019 Financial Results (Unit : Yen in billion) FY2019-FY2018 FY2018 FY2019 Change Net Sales 710.7 672.3 (38.4) Operating Income 27.6 3.3 (24.3) Ratio of Operating Income to Net Sales(%) 3.9 0.5 (3.4) Share of other comprehensive income of entities accounted for using equity 1.2 1.1 (0.1) method Or
Slide 9: Summary of FY2019 Business Results
Summary of FY2019 Business Results Both operating income and ordinary income decreased. There are 3 main reasons. The first is in Telecommunication Systems Company, there was an influence of intensifying competition in optical related products mainly in China. The second is in Electronic Products
Slide 10: FY2019 Contributing Factors to Net Sales Change (year-on-year basis)
FY2019 Contributing Factors to Net Sales Change (year-on-year basis) Net Sales (Unit : Yen in billion) Effects of Copper Effects of Prices Forex Impact of (6.4) restructuring of (12.5) overseas bases Power & Electronics Automotive Other TelecommunicationBusiness Products +0.2 (8.3) Systems (7.7) +3.
Slide 11: FY2019 Contributing Factors to Operating Income Change (year-on-year basis)
FY2019 Contributing Factors to Operating Income Change (year-on-year basis) Operating Income (Unit : Yen in billion) Effects of Copper Power & Effects of Prices Telecommunication (1.4) Forex Systems Business (0.7) (10.9) Electronics Business (10.3) Automotive Products 27.6 (0.7) 24.3 lower than FY20
Slide 12: FY2019 Extraordinary Profit and Loss
FY2019 Extraordinary Profit and Loss (Unit: Yen in billion) FY2018 FY2019 Operating Income 27.6 3.3 Extraordinary profit (21.0) ・Gain on valuation and sale of Share of other comprehensive income investment shares +6.8 of entities accounted for using equity 1.2 1.1 method ・Impairment Loss (17.2) ・Opt
Slide 13: FY2020 Forecast: Reduction of depreciation and improvement of business structure
FY2020 Forecast Reduction of depreciation due to impairment Improvement of business structure (Unit: Yen in billion) Segment Amount Comments Power & Reduction of depreciation due to impairment： Telecommunication 3.0 ・Optical fiber manufacturing assets(Effect 2.2billion yen) Systems Company ・Fiber la
Slide 14: Consolidated B/S (1)
Consolidated B/S (1) （Unit: Yen in billion） As of March As of March Change 31, 2019 31, 2020 〈Assets〉 638.3 576.0 (62.2) Accumulation of liquidity at hand to handle COVID-19 Current Assets 323.2 299.7 (23.4) Cash and Deposits 36.7 44.6 +7.8 Notes and Account ・Sales decrease due to COVID- 141.5 128.9
Slide 15: Consolidated B/S (2)
Consolidated B/S (2) （Unit: Yen in billion） As of March As of March Change 31, 2019 31, 2020 Total 638.3 576.0 (62.2) (Treasury Stock) ((6.3)) ((10.9)) ((4.5)) 〈Liability〉 397.4 403.9 +6.5 Notes and Account 64.9 65.7 +0.7 Payable Interest-bearing Debt 253.5 260.6 +7.1 The effect of adoption of IFRS1
Slide 16: CAPEX and Depreciation Cost
CAPEX and Depreciation Cost （Unit: Yen in billion） FY2018 FY2019 CAPEX 55.7 30.1 (for manufacturing 54.3 28.7 business) (for real estate 1.3 1.3 business) Depreciation Cost 31.5 35.7 (for manufacturing 29.4 33.7 business) (for real estate 2.0 2.0 business) 15
Slide 17: Interest-bearing Debts, Net Financial Profit and Free Cash Flow
Interest-bearing Debts, Net Financial Profit and Free Cash Flow （Unit: Yen in billion） FY2018 FY2019 1H 2H Full year 1H 2H Full year Interest- bearing 269.4 253.5 253.5 273.6 260.6 260.6 Debts Net Finansial (0.9) (1.0) (2.0) (1.0) (0.9) (1.9) Profit/Loss Free Cash (18.8) 16.4 (2.3) (18.3) 28.9 10.6
Slide 18: 2. By Segment
F Fujikura 2. By Segment
Slide 19: Financial Results and Forecasts by Segment
Financial Results and Forecasts by Segment （Unit: Yen in billion） Net Sales Operating Income and Ratio of Operating Income to Net Sales Segment FY2018 FY2019 Change FY2018 FY2019 Change Power & 17.7 4.5 (13.2) Telecommunication 354.8 327.8 (27.0) Systems Company 5.0% 1.4% (3.6%) Electronics Business
Slide 20: Power & Telecommunication Systems Company
Power & Telecommunication Systems Company In FY2019, both sales and operating income decreased. In Power Systems Company there was a recovery from the reactionary loss on the construction work of Bangladesh overhead transmission cable project in FY2018, but sales and operating income in Telecommun
Slide 21: Electronics Business Company
Electronics Business Company In FY2019, sales decreased mainly in FPC for smartphones. Operating income also decreased due to decline of demand, changes in product mix and increased fixed cost burden because of decreased revenue. （Unit: Yen in billion） Net sales and Ratio of Operating Income to Ne
Slide 22: Automotive Products Business Company
Automotive Products Business Company In FY 2019,sales increased excluding the effects of foreign exchange. Operating income decreased due to COVID-19 since 4Q FY2019. We plan to deal with the productivity improvement in Europe. （Unit: Yen in billion） Net sales and Ratio of Operating Income to Ne
Slide 23: Real Estate Business Company
Real Estate Business Company Revenues from leasing real estate properties continue to contribute to consolidated operating income. （Unit: Yen in billion） Net sales and Ratio of Operating Income to Net Sales Real Estate Ratio of Operating Income to Net Sales Stable revenues from leasing properties
Slide 24: 4. FY2020 Forecast
F Fujikura 4. FY2020 Forecast
Slide 25: FY2020 Forecast
FY2020 Forecast The consolidated business forecast is undecided at this time. Because it is quite difficult to make a rational forecast due to uncertain future business trends under COVID-19 expansion. We plan to announce our forecast promptly when rational forecasts become possible. 24
Slide 26: 4. Shareholder Return
F Fujikura 4. Shareholder Return
Slide 27: Shareholder Return
Shareholder Return Basic Policy of 2020 Mid-term Dividend payout ratio 20% or higher FY2019 Forecasts Dividends 5.0 yen per share (Interim 5.0 yen per share, Year-end no distribution, 1.4 billion yen) FY2018 Result 12.0 yen per share (Interim 7.0 yen per share, Year-end 5.0 yen per share) (7.0
Slide 28: Special Notes
Special Notes: Statements in this presentation that relate to future to results and events (including statements regarding Fujikura's revenue and earnings guidance) and based on Fujikura's current expectations. Actual results in future periods may differ materially form those currently expected beca
Slide 29: FY2019 Financial Results Appendix: Net Sales and Operating Income by Segment
【FY2019 Financial Results Appendix】 Net Sales and Operating Income by Segment Net Sales Records and Forecast by Segment Unit: Yen in Billion FY2018 FY2019 Full Full 1Q 2Q 3Q 4Q 1H 2H 1Q 2Q 3Q 4Q 1H 2H Year Year Power Systems 50.1 50.9 52.4 50.3 101.1 102.8 203.9 48.1 47.0 48.1 44.5 95.1 92.7 187.8 T