Jtekt Corporation · TSE:6473
Jtekt — H1 FY2012 Earnings Presentation
39 slides from Jtekt's earnings presentation, Nov 20, 2012
Slide 1: Presentation of First-Half Results for Fiscal Year Ending March 2013
1 Presentation of First-Half Results for Fiscal Year Ending March 2013 November 20,2012 JTEKT Corporation JTEKT CORPORATION
Slide 2: I. Overview of First-Half Result
2 Ⅰ．Overview of First- First-Half Result JTEKT CORPORATION
Slide 3: First-Half Results For Fiscal 2012; Forecasts for Fiscal 2012
3 １. First- First-Half Results For Fiscal 2012 2. Forecasts for Fiscal 2012 JTEKT CORPORATION
Slide 4: 1-1) Summary
4 1-1) Summary First-Half Results For Fiscal 2012 (100 million yen) (%：Compaired with FY2011) Net Sales 5,262 (＋13.7%) Operating Income 153 (△1.8%) Ordinary Income 122 (△20.5%) Net Income 48 (△42.2%) ○Sales↑ Income↓ from FY2011 First-Half ○By Product ・Mechanical Components Sales↑ from Automotive sal
Slide 5: 1-2) Financial Data (i)
5 1-2) Financial Data (i) (100 million Yen) First-Half First-Half Increse Increase FY2011 FY2012 /Decrease /Decrease(%) Net Sales 4,627 5,262 ＋634 ＋13.7% Operating Income (3.4%) 156 (2.9%) 153 △2 △1.8% Ordinary Income (3.3%) 153 (2.3%) 122 △31 △20.5% Net Income (1.8%) 84 (0.9%) 48 △35 △42.2% Exchang
Slide 6: 1-2) Financial Data (ii)
6 1-2） Financial Data (ii) Interest-Bearing Debt ： Decreased by Current Loan Payment. Capital Expenditure ： R&D for Product Competitiveness, In-House Investment for Additional Value, Production Expansion in Developing Countries. (100 million yen) First-Half Increase Increase FY2011 /Decrease(%) FY20
Slide 7: 1-3) Quarter Trend
7 1-3） Quarter Trend (100 million yen) Operating income rate 4.7% 4.0% 2.7% 3.0% 2.9% 1.8% 2,640 2,669 2,592 2,484 2,347 2,142 Sales 123 98 911 79 74 57 41 34 Operating Income 1Q'11 2Q'11 3Q'11 4Q'11 FY unification 1Q'12 2Q'12 impact JTEKT CORPORATION
Slide 8: 1-4) Financial Result by Product
8 1-4） Financial Result by Product ◇Mechanical Components ・Steering Systems, Drive Line Components ・・・Sales increased in JP, NA, and Asia, decreased in Europe. ・Bearings ・・・Automotive : Sales increased in JP, NA, and Asia, decreased in Europe. After Market : Sales decreased in Most of Areas. ◇Machin
Slide 9: 1-5) Financial Result by Product - Quarter Trend
9 1-5） Financial Result by Product - Quarter Trend Mechanical Components (100 million Yen) 3.0% 3.7% 2.2% 1.7% 2.1% 0.9% Operating Income Rate 2,253 2,326 2,205 2,130 2,012 1,818 Operating Sales Income 82 812 64 51 38 25 37 17 1Q'11 2Q'11 3Q'11 4Q'11 FY unification 1Q'12 2Q'12 impact Machine Tools 1
Slide 10: 1-6) Net Sales by Product - Quarter Trend
10 1-6） Net Sales by Product - Quarter Trend Steering Systems FY unification Bearings (100 million yen) 514 239 1,120 1,192 1,157 831 815 818 995 961 734 769 771 846 1Q'11 2Q 3Q 4Q 1Q'12 2Q 1Q'11 2Q 3Q 4Q 1Q'12 2Q Driveline Components Machine Tools 98 59 354 386 343 386 302 318 315 324 335 237 281 2
Slide 11: 1-7) Financial Result by Region (i)
11 1-7） Financial Result by Region (i) (100 million yen) 2010年度 First-Half 2011年度 First-Half Increase Increase 増 減 額 増 減 率 /Decrease(%) FY2011 第2四半期 FY2012 第2四半期 /Decrease 売 Net 上 高 Sales 2,480 2,362 2,363 2,764 △117 ＋402 △4.7% ＋17.0% 日 Japan 本 Operating 営業 利益 income 84 63 63 86 △21 ＋23 △24.7% ＋36.8
Slide 12: 1-7) Financial Result by Region (ii)
12 1-7） Financial Result by Region (ii) (100 million yen) 2010年度 First-Half 2011年度 First-Half Increase Increase 増 減 額 増 減 率 /Decrease(%) FY2011 第2四半期 FY2012 第2四半期 /Decrease ア Asia・ ジ ア ・ 売 Net 上 高 Sales 424 515 515 622 ＋90 ＋107 ＋21.4% ＋20.8% オ Oceania セ ア ニ ア 営業 Operating 利益 income 59 60 60 65 ＋1 ＋4
Slide 13: 1-8) Financial Result by Region - Quarter Trend (i)
13 1-8） Financial Result by Region- Region - Quarter Trend (i) Japan (100 million yen) 5.1% Operating income rate 3.6% 3.3% 3.0% 2.3% 1.5% 1,501 1,358 1,356 1,366 1,398 1,003 Sales 75 Operating 48 44 income 41 30 14 0 △0 1 Q'1 1 2Q 3Q 4Q FY 1 Q'1 2 2Q u n ific ation impac t Europe North America 2.8%
Slide 14: 1-8) Financial Result by Region - Quarter Trend (ii)
14 1-8） Financial Result by Region- Region - Quarter Trend (ii) Asia ・Oceania ・ China (100 million yen) 12.2% 16.6% 14.9% 11.0% 11.7% 10.4% 10.6% 12.7% 11.1% 11.5% 9.6% 180 1.5% 304 318 281 277 120 120 114 121 233 108 99 177 18 20 34 32 31 33 14 15 14 25 11 10 39 7 2 1 Q'1 1 2Q 3Q 4Q FY 1 Q'1 2 2Q 1
Slide 15: 1-9) Operating Income Change Analysis
15 1-9） Operating Income Change Analysis Operating Income △2 (100 million yen) Negative impact △183 Positive impact ＋181 △26 ＋56 156 △91 153 △21 ＋125 △21 Excludes Exchange △24 Rate Impact First- First- improvement Fallin selling Income rise price Level Rise in raw investment exchange Half Half expen
Slide 16: 1-10) Dividends
16 1-10 10）） Dividends (yen per share) Interim Dividend：7yen Annual Dividend(Expected)：14yen 24yen (17.7%) Annual Dividend (Dividend Payout Ratio) 17yen 16yen 16yen (―) 14yen 13 (26.9%) (41.1%) 11yen (119.7%) 6 (―) 9 9 7 6 11 11 5 7 7 7 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 JTEKT CORPORATION
Slide 17: First-Half Results For Fiscal 2012; Forecasts for Fiscal 2012
17 １. First-Half Results For Fiscal 2012 2. Forecasts for Fiscal 2012 JTEKT CORPORATION
Slide 18: 2-1) External Environment
18 2-1） External Environment Long Lasting Sovereign-Debt crisis in Europe. Economy slow down and Japanese Auto Sale Decrease in China Continuous Strong Yen JTEKT CORPORATION
Slide 19: 2-2) Full Year Forecast revision
19 2-2） Full Year Forecast revision ・Sales is revised downward due to Long Lasting Low Demand in Europe, Economy Slow Down and Japanese Auto Sales decrease in China. ・Income is revised downward due to sales decrease, Strategical Prior Investment, Continuous Strong Yen. (100 million yen) 1Q Disclosur
Slide 20: 2-3) Full Year Forecast
20 2-3） Full Year Forecast Sales…Increase from FY2011 without FY Unification Impact. Income…Decrease due to Exchange Rate, Sales Price Level Down, Prior Investment. (100 million yen) 2011年度 2010年度 FY2011 2012年度 FY2012 2011年度 Increase 対前年同期 対 FY 前 期 Real Increase 増 減 /Decrease 第2四半期 (Expected) 第2四半期
Slide 21: 2-4) Net Sales by Product
21 2-4） Net Sales by Product (100 million yen) FY2012 Increase 決 FY算 期 実 質 Real Increase 2010年度 2011年度 FY2011 2012年度 2011年度 増 減 額 増 減 率 (Expected) /Decrease 統 Unification 一 影 響 増/Decrease 減 額 Steering 3,875 4,437 3,880 4,680 242 ＋242 ＋5 △514 756 ＋756 Mechanical Components ステ アリ ング Systems ＋0.1% 機 械
Slide 22: 2-5) Net Sales by Region
22 2-5） Net Sales by Region (100 million yen) FY2012 Increase FY Real Increase 2010年度 FY2011 2011年度 増 減 額 増 減 率 /Decrease (Expected) /Decrease Unification 日 Japan 本 5,001 5,220 5,040 5,525 ＋304 ＋39 － ＋0.8% ＋304 欧 Europe 州 1,430 1,698 1,470 1,230 △468 ＋40 △324 ＋2.8% △144 北 North America 米 1,461 1,820
Slide 23: 2-6) Operating Income Change Analysis
23 2-6） Operating Income Change Analysis FY Unification Impact 34 Operating Profit △51 (w/o FY Unification Impact) (100 million yen) 356 Negative Impact △241 Positive Impact ＋190 ＋90 △30 ＋100 321 △120 270 △34 △57 Excludes Exchange Rate Impact FY2011 FY2012 material price Income rise in Fall in selli
Slide 24: II. Corporate Strategy
24 II. Corporate Strategy JTEKT CORPORATION
Slide 25: JTEKT VISION 2015 - Summary
25 JTEKT VISION 2015 - Summary Towards a company that sees market changes as business chances and keeps on growing JTEKT VISION 2015 – Important Points to Implement Changes in product trends Strengthen product competitiveness Changes in regions of demand Strengthen handling of emerging markets Cha
Slide 26: Mid-term Global Policy - Summary
26 Mid--term Global Policy - Summary Mid Mid-term Global Corporate Policy Establishing a firm foundation not swayed by change A challenge to leap forward Administration Strengthen Delivery Time Sales Resources, Quality, Safety Climate Group Human Potentiality CSR Strengthen Mono- Product Zukuri Comp
Slide 27: A Challenge to Leap Forward
27 A Challenge to Leap Forward Furthering Reform of the Sales / Products / Monozukuri Trinity Strengthen Sales Potentiality Sense market trends; towards making proposals as a system supplier Proposals for product value, standard products, and solutions based on in-house evaluation and analysis →Sal
Slide 28: Strengthen Sales Potentiality - Concept
28 Strengthen Sales Potentiality-- Concept Shared Design Custom Design Standardization Product Series Modularization Order Made Products Order-Made Towards original, “easy-order” products ◆ Advance shift to high added value products; Merge volume zone products High Performance, -Product Types Reduct
Slide 29: Strengthen Sales Potentiality - Automotive Parts (Steering - 1)
29 Strengthen Sales Potentiality– – Automotive Parts (Steering - 1) A product strategy that fully utilizes the strength of our lineup <Product Lineup Comparison> JTEKT JTEKT A社A Co. B社B Co. C社C Co. D社D Co. E社E Co. Market Direction C-EPS C-EPS Change to standard series ○ ○ ○ ○ ○ × Compact, （コラム式） (c
Slide 30: Future Developments in Electric Power Steering
30 Strengthen Sales Potentiality– – Automotive Parts (Steering - 2) Future Developments in Electric Power Steering C-EPS DP-EPS RP-EPS A, B, C Segment Cars C, D Segment Cars E, F Segment Cars (Axial force 9kN or less) (Axial force 9kN-12kN) (Axial force 12kN or more) Ensure market Reduce cost by com
Slide 31: Sample Proposal for Standard, Series, Module Products
31 Strengthen Sales Potentiality– – Automotive Parts (Proposal Power – 1) Sample Proposal for Standard, Series, Module Products Drive Shaft Module Hub Unit Module Kei-Car Package Caliper Knuckle Ultra-low torque TRB Small, lightweight for pinions (LFT-III) Dust Cover column EPS Hub Unit Small, light
Slide 32: Why We Opened the Iga Proving Grounds (Test Course)
32 Strengthen Sales Potentiality – Automotive Parts (Proposal Power – 2) Why We Opened the Iga Proving Grounds (Test Course) Use our cumulative evaluation Contribute to our customers’ and analysis skills as a product development specialized manufacturer to offer Shorten development time standardize
Slide 33: Sample Proposal for a Machine Tools System
33 Strengthen Sales Potentiality – Machine Tools Sample Proposal for a Machine Tools System Crankshaft Grinding Machine Flexible Cell GF50M-70-T TG4 Grinding Process 2 Grinding Process 3 Grinding Process 1 Grinding Process 4 Reduced machines needed to 2 down from 4 thanks to process consolidation Co
Slide 34: Enhanced Product Power from Technological Innovation
34 Strengthen Sales Potentiality – For Technological Innovation Enhanced Product Power from Technological Innovation Sample of how new tech might be used: New technology born from technological innovation Stair-climbing robot Integrated motor, ECU, reducer Small-size, high rigidity, high torque act
Slide 35: Monozukuri Innovation - Concept
35 Monozukuri Innovation - Concept A line for each Variable Type/ All In-House, customer Universal Line Volume Production Monozukuri Recipe From single-purpose mass production line To GSL (Global Standard Line) Enhance Product Power Reinvent Monozukuri Standardized, serialized high added Construct
Slide 36: Monozukuri Innovation - CVJ Manufacturing and Assembly Line
36 Monozukuri Innovation– – CVJ Manufacturing and Assembly Line Reduce Manufacturing and Assembly Line Lead Time Conventional Line GSL (Global Standard Line) CVJ Process consolidation Reduce no. of machines Shrink stock, reduce lead time thanks to Global Standard Line △10% △20% △70% △65% Stock Lead
Slide 37: Monozukuri Innovation - Reduce Machining Tools Lead Time
37 Monozukuri Innovation – Reduce Machining Tools Lead Time Reduce Lead Time for Machining Tools Constructing a standard machine production line Equipment assembly – streamlining, sub-assembly Lead time reduced by 60% Convert to fill-up production system 3 Months 従 来 Order Production Delivery Conv
Slide 38: Preparation for Future Growth - Regional Strategy
38 Preparation for Future Growth - Regional Strategy Priority Investment in Growth Areas, Markets ・Begin local DP-EPS production (’14) ・Augment hub unit ・Tech Center – expand function production capacity ・Augment hub unit production capacity ・Begin local CVJ production (’14) China USA ・Began local b
Slide 39: Preparation for Future Growth - Equipment Investment Plan
39 Preparation for Future Growth – Equipment Investment Plan Priority Investment for Trinity Reform and Growth Markets Invest in development to Increase added value, Enhance capability in increase product power, invest in in-house emerging markets line reform production 0.1 （億円） billion yen 850 1,00