Jvckenwood Corporation · TSE:6632
Jvckenwood — Q3 FY2013 Earnings Presentation
31 slides from Jvckenwood's earnings presentation, Feb 4, 2013
Slide 1: Results and Forecast Briefing, Third Quarter FYE March 2013
Translation for Reference Only JVCKENWOOD Results and Forecast Briefing Third Quarter of the Fiscal Year Ending March 2013 February 4, 2013 Copyright © 2013 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Abbreviations
[Abbreviations] CE: Car Electronics (Business) PS: Professional Systems (Business) COM: Communications Equipment (Business) BS: Business Solutions (Business) HM: Home & Mobile Electronics (Business) Sound: Sound & Acoustic Equipment (Business) Imaging: Imaging Equipment (Business) SE: Entertainment
Slide 3: Financial Results Overview for 3Q of Fiscal Year Ending March 2013
Financial Results Overview for 3Q of Fiscal Year Ending March 2013 Satoshi Fujita, Director and CFO Copyright © 2013 JVCKENWOOD Corporation. All rights reserved.
Slide 4: Financial Results for 1-3Q FYE3/'13 - Summary
Financial Results for 1-3Q FYE3/’13- Summary * Net sales and income fell, due mainly to the effects of foreign exchange volatility (impact on net sales and operating income plus incurring of foreign exchange losses) and sluggish sales in Europe, although SE continued to be strong. (billion yen) Oper
Slide 5: Foreign Exchange Impact for 1-3Q FYE3/'13
Foreign Exchange Impact for 1-3Q FYE3/’13 [Operating income] * JVCKENWOOD benefits from a stronger yen against the U.S. dollar and a weaker yen against the euro. In 1-3Q FYE3/’13, the yen weakened 1.0 yen against the U.S. dollar, while it strengthened 8.0 yen against the euro, which caused operating
Slide 6: Net Sales
Financial Results for 3Q of FYE3/’13 - Net Sales Results for 1-3Q FYE3/’13: JPY 224.5B (Down 5.1% YoY) * Net sales decreased due to the effects of the strong yen until 2Q, sluggish sales in Europe in CE, PS and HM, and realignment of some models in HM. * Earnings increased in SE, due to a series of
Slide 7: Operating Income
Financial Results for 3Q FYE3/’13 - Operating Income 1-3Q FYE3/’13: JPY 4.8B (Down JPY4.0B YoY) * Operating income declined due to foreign exchange effects (down JPY2.0B), lower sales in Europe in CE, PS and HM, and slower domestic sales of CE. * Income rose for SE. PS also posted higher income when
Slide 8: Ordinary Income
Financial Results for 3Q FYE3/’13 - Ordinary Income Results for 1-3Q FYE3/’13: JPY 0.8B (Down JPY 5.7B YoY) * Ordinary income fell, mainly due to lower operating income and posting of foreign exchange losses. * Non-operating income and loss deteriorated approximately JPY 1.7B, due to foreign exchang
Slide 9: Net Income
Financial Results for 3Q FYE3/’13 - Net Income Results for 1-3Q FYE3/’13: Net loss of JPY 1.5B (Down JPY 5.9B YoY) * Net income fell, due mainly to lower ordinary income. * Extraordinary income was comparable year-on-year, due to posting of employment structural reform expenses at overseas affiliate
Slide 10: Analysis of factors behind YoY increases/decreases
Financial Results for 1-3Q FYE3/’13 - Analysis of factors behind YoY increases/decreases <Net sales> * The main factors behind the YoY decrease in net sales were deteriorating economic conditions in Europe and realignment of some models in HM, on top of the appreciation of the yen until 2Q. <Operati
Slide 11: Information by Business Segment
Information by Business Segment 11
Slide 12: Net sales, Profits, and Losses by Business Segment
Net sales, Profits, and Losses by Business Segment * In 1-3Q, sales and profits decreased in three business segments other than SE. * In 3Q (October to December), SE continued to post higher sales and profits, while PS turned around to post higher sales and profits, although CE and HM saw lower sale
Slide 13: Car Electronics Business
Financial Results for 3Q - Car Electronics Business Results for 1-3Q Net sales: JPY 72.6B (Down 6.6%) Operating income: JPY 1.4B (Down JPY 3.0B) After-market: Performance deteriorated in 3Q, due to a sluggish market and foreign exchange volatility in Europe, and to the effects of a poor product mix
Slide 14: Professional Systems Business
Financial Results for 3Q - Professional Systems Business Results for 1-3Q Net sales: JPY 65.1B (Down 3.0%) Operating income: JPY 1.2B (Down JPY 0.4B) COM: Earnings was affected by foreign exchange volatility and lower sales in Europe and China. Sales of digital radio systems remained robust in North
Slide 15: Home & Mobile Electronics Business
Financial Results for 3Q - Home & Mobile Electronics Business Results for 1-3Q Net sales: JPY 52.1B (Down 12.0%) Operating income: JPY 0.5B (Down JPY 0.9B) Sound & Acoustic: The AV accessory segment maintained high profitability. Profit/loss of the home audio segment weakened, due to a shrinking mar
Slide 16: Entertainment Business
Financial Results for 3Q - Entertainment Business Results for 1-3Q Net sales: JPY 31.3B (Up 11.1%) Operating income: JPY 1.9B (Up JPY 0.7B) Content: A number of hit theme songs of TV dramas and music albums contributed to performance. Earnings expanded, due also to strong animation products and stea
Slide 17: Net Sales by Region (Reference)
Financial Results for 1-3Q - Summary Net Sales by Region (Reference) [Japan] Net sales were comparable year-on-year, as higher sales in SE and PS offset lower sales in HM. In CE, higher sales in 1Q and 2Q offset lower sales in 3Q. [Americas] Net sales increased, as higher sales in PS (COM) absorbed
Slide 18: Financial Status - Balance Sheets
Financial Results for 3Q FYE3/’13 - Financial Status Balance Sheets * Total assets decreased JPY 7.2B, due to a decline in cash and deposits and declines in trade notes and accounts receivable. * Liabilities decreased JPY 8.7B, mainly due to a decline in accrued expenses and reductions in bonds paya
Slide 19: Financial Status - Cash Flows
Financial Results for 3Q - Financial Status Cash Flows Cash flow from operating activities: Net cash totaled JPY 9.2B (Up JPY 6.4B YoY) * This was mainly due to a considerable decline in expenses relating to structural employment reforms. Cash flow from investing activities: Net cash used totaled JP
Slide 20: Initiatives for 4Q of Fiscal Year Ending March 2013
Initiatives for 4Q of Fiscal Year Ending March 2013 Shoichiro Eguchi, President and CEO Copyright © 2013 JVCKENWOOD Corporation. All rights reserved.
Slide 21: Full-year Earnings Forecast for FYE 3/'13
Full-year Earnings Forecast for FYE 3/’13 21
Slide 22: Full-year Earnings Forecast for FYE 3/'13
Full-year Earnings Forecast for FYE 3/’13 * Earnings forecast was revised considering the continuing depreciation of the yen against the U.S. dollar and stagnant European economy. * Exchange rates assumed for 4Q were revised: USD 1: JPY 79 → JPY 95, EUR 1: JPY 103 → JPY 125 Given the correction of f
Slide 23: Forecast compared to revision of November 1, 2012
Full-year Earnings Forecast for FYE3/’13 (Compared to the revision as of November 1, 2012) * Factors underlying the downturn in 3Q are delayed recovery of domestic sales of CE and stalled recovery of sales in China of PS, and sluggish sales in Europe. * The revised plan for 4Q reflects factors such
Slide 24: 4Q Sales and Operating Income
Full-year Earnings Forecast for FYE 3/’13 4Q Sales and Operating Income * In 4Q, sales and profits are likely to post their record highs for FYE3/’13, as CE and PS welcome a season that brings the biggest sales opportunities of the year, while HM launches a new camcorder. Communication navigation Sa
Slide 25: Revision of dividend forecast
Full-year Earnings Forecast for FYE3/’13 <Revision of dividend forecast> Considering the revision of the consolidated earnings forecast, the annual dividend forecast was revised from 10.00 yen per share previously announced to 5.00 yen per share, which is the same as for FYE3/’12. Annual 年間配当金divide
Slide 26: Initiatives for 4Q by Business Segment
Initiatives for 4Q of Fiscal Year Ending March 2013 by Business Segment 26
Slide 27: Priority measures for 4Q - Car Electronics Business
Initiatives for 4Q FYE3/’13 Car Electronics Business Priority measures for 4Q Trends of Quarterly Net Sales in the CE Business [After-market segment] (billion yen) (billion yen) 120 10.0 * Overseas: Launch 2013 models and promote Annual operating income sales 4Q Expand and improve navigation lineup
Slide 28: Priority measures for 4Q - Professional Systems Business
Initiatives for 4Q FYE3/’13 Professional Systems Business Trends in Quarterly Net Sales in the PS Business Priority measures for 4Q (billion yen) (billion yen) [COM Business] 120 10.0 Annual operating income * North America: Expand orders for P25* and promote NEXEDGE*and the new analog device at IWC
Slide 29: Priority measures for 4Q - Home & Mobile Electronics Business
Initiatives for 4Q FYE3/’13 Home & Mobile Electronics Business Trends in Quarterly Net Sales in the HM Business Priority measures for 4Q (billion yen) (billion yen) [Sound & Acoustic] 120 3.0 Annual operating income * AV accessories: Boost sales of new products in Europe 4Q and the U.S.; expand sale
Slide 30: Priority measures for 4Q - Entertainment Business
Initiatives for 4Q FYE3/’13 Entertainment Business Prospective works for 4Q Trends in Quarterly Net Sales in the SE Business Keisuke Kuwata Released on March 13, 2012 (billion yen) (billion yen) 60 3.0 Theme song for “Saiko no Rikon,” a drama on Fuji TV Annual operating income “Yin Yang” 40 4Q 4Q 2.
Slide 31: Forward-looking statements
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, they are inherently susceptible to risk, uncertainty and o