Slide 1: Results Briefing for the Fiscal Year Ended December 31, 2018 (FY2018)
Explanatory Meeting Results Briefing for the Fiscal Year Ended December 31, 2018 (FY2018) February 14, 2019 Akira Kiyohara President, JUKI Corporation (This translation may be used for reference purposes only)
Slide 2: Table of Contents
Table of Contents Part 1: Performance of FY2018 and Forecast for FY2019 1-1 Performance Trends and Dividends for FY2018 3 1-2 Factors Leading to an Increase/Decrease in Ordinary Profit 4 1-3 Major Financial Indices and Cash Flows 5 1-4 Performance by Business Segment 6 1-5 Performance Forecast for F
Slide 3: Part 1 Performance of FY2018 and Forecast for FY2019
Part 1 Performance of FY2018 and Forecast for FY2019
Slide 4: 1-1 Performance Trends and Dividends for FY2018
1-1 Performance Trends and Dividends for FY2018 (Jan to Dec 2018) Net sales increased 8.1% from the previous fiscal year, despite some production delays, thanks to gains in solution sales and progress in customer development in middle markets centered on Asia. Operating profit rose 12.2% from the pr
Slide 5: 1-2 FY2018 Factors leading to an Increase/Decrease in Ordinary Profit
1-2 FY2018 Factors leading to an Increase/Decrease in Ordinary Profit Ordinary profit rose 0.5 billion yen compared with the previous fiscal year as higher income from increased sales and cost reductions, etc., covered a rise in operating expenses including middle market development strategy expense
Slide 6: 1-3 Major Financial Indices and Cash Flows
1-3 Major Financial Indices and Cash Flows Equity ratio reached the 30% level. Net interest-bearing debt of 45.1 billion yen was marginally higher than the end of the previous fiscal year. Net debt-to- equity ratio of 1.21 reflects 0.11 pp improvement from the end of the previous fiscal year. Operat
Slide 7: 1-4-1 Performance by Business Segment: Changes in Net Sales
1-4-1 Performance by Business Segment: Changes in Net Sales Sales at the Sewing Machinery & Systems Business increased 6.6% from the previous year as sales in high-end areas including China remained steady, while sales in the middle market also showed gains. In the Industrial Equipment & Systems Bus
Slide 8: 1-4-2 Performance by Business Segment: Changes in Ordinary Profit
1-4-2 Performance by Business Segment: Changes in Ordinary Profit Although the Sewing Machinery & Systems Business benefited from increased sales, ordinary profit fell 11.8% from the previous fiscal year, due mainly to middle market development strategy expenses. The Industrial Equipment & Systems B
Slide 9: [Reference Info #1] Sewing Machinery & Systems Business
[Reference Info #1] Performance by Business Segment: Sewing Machinery & Systems Business In China, machines for both non-apparel products and woven fabric as well as automatic machines showed solid performance overall. In Asia, sales rose centered on machinery for non-apparel products. Changes in Ne
Slide 10: [Reference Info #2] Industrial Equipment & Systems Business
[Reference Info #2] Performance by Business Segment： Industrial Equipment & Systems Business Electronic Assembly Systems posted 19% sales growth from the previous fiscal year thanks to robust capital investment demand in China. Both the Group Business including contract processing and the Parts Busi
Slide 11: 1-5-1 Performance Forecast for FY2019
1-5-1 Performance Forecast for FY2019 (100 million yen) Full-year results for Forecasts for FY2019 FY2018 Full-year Full-year (Jan-Dec) (Jan-Dec) Net sales 1,120 1,140 Sewing Machinery & Systems 736 750 Industrial Equipment & Systems 381 390 Operating profit 91 73 Ordinary profit 83 68 Profit 66 50
Slide 12: 1-5-2 Forecast: Factors Leading to Increase/Decrease in Ordinary Profit
1-5-2 Performance Forecast for FY2019: Anticipated Factors Leading to an Increase/Decrease in Ordinary Profit In addition to accumulating earnings through an increase in sales, we aim to improve profit ratios through production cost reductions and new product introductions to the middle market. Howe
Slide 13: Part 2 Measures for Achieving the Medium-Term Management Plan (2019-2021)
Part 2 Measures for Achieving the Medium- Term Management Plan (2019 – 2021) and Key Initiatives for FY2019
Slide 14: 2-1-1 Medium-Term Management Plan: Rolling Method
2-1-1 Measures for Achieving the Medium-Term Management Plan: Rolling Method Embarking on the 3rd year of the Medium-Term Management Plan “Value Up 2022” MTMP milestones to Backcasting Vision meet the FY2022 goals for FY2022 Objectives for FY2019 Vision=Where we should be Current state Aim at achiev
Slide 15: 2-1-2 Medium-Term Management Plan: Business Climate
2-1-2 Measures for Achieving the Medium-Term Management Plan: Business Climate ➢ Risks of economic slowdown are rising, as instability of global economy increases ・e.g., China-U.S. trade war, Brexit, geopolitical risks, strong yen ➢ Technological innovation trend (from MONO [goods] manufacturing to
Slide 16: 2-1-3 Medium-Term Management Plan: Progress Status
2-1-3 Measures for Achieving the Medium-Term Management Plan: Progress Status Net Sales, Ordinary Profit Rate of Ordinary Profit to Net Sales (Target: annual growth rate of 9%) (Target: 9.2% or higher by FY2021) FY2018 actual: 112.0 billion yen FY2018 actual 7.5％ (100 million yen) 10% FY2021 plan Le
Slide 17: 2-1-4 Vision and Five Basic Policies
2-1-4 Measures for Achieving the Medium-Term Management Plan: Vision and Five Basic Policies To be an enterprise that consistently provides customer- Vision preferred, high-quality products and services - Let’s provide customers around the globe with excitement as well as reliability! (1) Strengthen
Slide 18: 2-1-5 Investment Plan
2-1-5 Measures for Achieving the Medium-Term Management Plan: Investment Plan Make advance investments in 2019 to implement smartization initiatives and develop differentiated products 2019 investment in production facilities 2019 investment in development 2019 investment in IT (million yen) Total:
Slide 19: 2-1-6 Business Portfolio
2-1-6 Measures for Achieving the Medium-Term Management Plan: Business Portfolio Expand business portfolio by devoting managerial resources to each business segment’s areas of growth and to fields in which JUKI can differentiate itself (100 million yen) Before the elimination of intercompany transac
Slide 20: 2-2-1-1 Key Initiatives for FY2019: Industrial Sewing Machines
2-2-1-1 Key Initiatives for FY2019: Sewing Machinery & Systems Business (Industrial Sewing Machines) Contribute to customer innovation through innovative technology and system Vision proposals based on JUKI Smart Solutions Build a customer base for the future by developing customers in the middle ma
Slide 21: 2-2-1-2 Industrial Sewing Machines: Proposals for plants
2-2-1-2 Key Initiatives for FY2019: Sewing Machinery & Systems Business (Industrial Sewing Machines) 《High-end offerings》 《Productivity improving / Labor-saving》 “Digital Series”- Automatic machines Sewing robotics Automated guided vehicles centered line solutions 》 Proposals for plants Material Sam
Slide 22: 2-2-2-1 Key Initiatives for FY2019: Household Sewing Machines
2-2-2-1 Key Initiatives for FY2019: Sewing Machinery & Systems Business (Household Sewing Machines) Create new ways to enjoy handicraft-making, in collaboration with customers Vision (home sewers) who have excellent handicraft capabilities Develop solid business based on strengths in high-end househ
Slide 23: 2-2-2-2 Expand product lineup to better meet each market's characteristics
2-2-2-2 Key Initiatives for FY2019: Sewing Machinery & Systems Business (Household Sewing Machines) Expand product lineup to better meet each market’s characteristics 《Japan》 《Japan》 Overlock machines High-end sewing Live Events & Digital machines for Marketing professionals MO- ⇩ 1000ML Customer de
Slide 24: 2-2-3-1 Key Initiatives for FY2019: Electronic Assembly Systems
2-2-3-1 Key Initiatives for FY2019: Industrial Equipment & Systems Business (Electronic Assembly Systems) Become an essential business partner for customers through devoting resources to our areas of strength and by proposing and providing automation and labor-saving Vision solutions - Expand sales
Slide 25: 2-2-3-2 JUKI Smart Solutions
2-2-3-2 Key Initiatives for FY2019: Industrial Equipment & Systems Business (Electronic Assembly Systems) JUKI Smart Solutions Alliance companies Company A Company B Open innovation 23
Slide 26: 2-2-4-1 Key Initiatives for FY2019: Group Business
2-2-4-1 Key Initiatives for FY2019: Industrial Equipment & Systems Business (Group Business) Grow into JUKI’s third pillar business leveraging JUKI Group management Vision resources (including manufacturing technologies) Increase sales to create the third pillar business by acquiring new customers a
Slide 27: 2-2-4-2 JUKI Contract Business Model
2-2-4-2 Key Initiatives for FY2019: Industrial Equipment & Systems Business (Group Business) JUKI Contract Business Model Use of accumulated leverage of JUKI’s manufacturing capabilities and global network, utilizing the Group’s manufacturing companies (7 companies in Japan, 1 company overseas) and
Slide 28: 2-2-5-1 Key Initiatives for FY2019: Customer Business
2-2-5-1 Key Initiatives for FY2019: Industrial Equipment & Systems Business (Customer Business) Vision JUKI’s parts can be received the day after they’re ordered Expand parts business, utilizing system support/remote maintenance/diagnostic Basic Policy monitoring of production facilities, and launch
Slide 29: 2-2-5-2 Customer Business: Support for Smart Solution
2-2-5-2 Key Initiatives for FY2019: Industrial Equipment & Systems Business (Customer Business) Technical support ・Sewing machinery: Conduct machinery diagnoses based on Remote maintenance records Maintenance ・Electronic assembly systems: Rebuild the pre-owned products business Support for Smart Sol
Slide 30: 2-3-1 JUKI's Vision for Environmental Conservation
2-3-1 Corporate Initiatives for Improving the Environment, Society, and Governance (ESG Initiatives) 《 E: Environment》 JUKI’s Vision for Environmental Conservation The JUKI Group’s stance toward Business activity area • Product area environmental conservation activities Achievement of a Achievement
Slide 31: 2-3-2 ESG Initiatives: Environment
2-3-2 Corporate Initiatives for Improving the Environment, Society, and Governance (ESG Initiatives) 《 E: Environment》 Development/ JUKI’s Monodzukuri Design (Manufacturing) Procurement Develop and design products Establish “JUKI Group that are people- and eco- Green Procurement friendly (energy-sav
Slide 32: 2-3-3 ESG Initiatives: Society
2-3-3 Corporate Initiatives for Improving the Environment, Society, and Governance (ESG Initiatives) 《 S: Society》 Initiatives for promoting diversity Initiatives for community education JUKI practices “diversity management” and hires people regardless In 2018, JUKI’s head office in Tama (Tokyo), th
Slide 33: 2-3-4 ESG Initiatives: Governance
2-3-4 Corporate Initiatives for Improving the Environment, Society, and Governance (ESG Initiatives) 《 G: Governance》 Schematic of the Corporate Philosophy and Policies Corporate Philosophy Corporate Slogan Concept of value, importance of existence, purpose Basic Management Policies 5S’s for Managem
Slide 34: 2-4: 80th Anniversary Activities
2-4: 80th Anniversary Activities 《Strengthening of relationships》 Showing gratitude to our customers, business partners, and shareholders • Anniversary website • Hold “thank you” meetings: Texprocess Show [U.S.], Jisso Process Technology Exhibition (JISSO PROTEC) [Japan], etc. • JUKI Sewing Festival
Slide 35: JUKI CORPORATION
This material contains forward-looking statements concerning future plans, strategies and assumptions in light of the economic, financial and other data currently available. Furthermore, they are subject to a number of risks and uncertainties. JUKI therefore wishes to caution readers that actual res