Kanematsu Corporation · TSE:8020

Kanematsu — 1H FY2017 Earnings Presentation

23 slides from Kanematsu's earnings presentation, Nov 8, 2016

  1. Slide 1: Overview of results for 1H of FY2017

    Note: The forward-looking statements in this material, including plans, forecasts, and strategies of the Group, reflect judgments that the Company made based on information available at the time the material was prepared and include risks and uncertainties. Because of changes in the business environ

  2. Slide 2: 1. Results for the first half of FY2017

    1. Results for the first half of FY2017 © KANEMATSU CORPORATION All Rights Reserved 2

  3. Slide 3: 1-1. 1H of FY2017 Highlight (P/L)

    1-1. 1H of FY2017 Highlight (P/L) ✔ Profit for the period attributable to owners of the parent declined 20% year on year due to a deterioration in equity in earnings of affiliated companies. ✔ Operating profit remained flat. 1H of FY2016 1H of FY2017 (Unit: billion yen) Change (results) (results) Ne

  4. Slide 4: 1-2. 1H of FY2017 Highlight (segment margin)

    1-2. 1H of FY2017 Highlight (segment margin） ✔ Operating profit remained flat from a year ago, with a rise in Electronics & Devices offsetting declines in other segments Segment margin Electronics & Devices An increase in net sales and profit Billion yen (Operating profit) In the ICT solutions busin

  5. Slide 5: 1-3. 1H of FY2017 Highlight (B/S)

    1-3. 1H of FY2017 Highlight (B/S) ✔ The equity ratio declined slightly due to a stronger yen and a fall in share prices. ✔ The net debt-equity ratio remained low at 0.6 times. 1H of 1H of FY2016 FY2016 (Unit: billion yen) FY2017 (Unit: billion yen) FY2017 (results) (results) (results) (results) Gros

  6. Slide 6: 1-4. 1H of FY2017 Highlight (C/F)

    1-4. 1H of FY2017 Highlight (C/F) ✔ Net cash used in investing activities stood at 11.7 billion yen, reflecting the acquisition of Diamondtelecom, Inc. on April 1. 60.0 Billion yen ■CF from operating activities ■CF from investing activities (excludes change in time deposit) Amount of decrease in net

  7. Slide 7: 2. FY2017 forecast

    2. FY2017 forecast © KANEMATSU CORPORATION All Rights Reserved 7

  8. Slide 8: 2-1. FY2017 forecast

    2-1. FY2017 forecast ✔ Operating profit is expected to remain steady. ✔ Profit for the year attributable to owners of the parent declined due to the deteriorated equity in earnings of affiliated companies attributable to the foreign exchange rate. FY2017 FY2017 (Unit: billion yen) （Revised on Novemb

  9. Slide 9: 2-2. FY2017 forecast (Segment margin change)

    2-2. FY2017 forecast (Segment margin change) ✔ In Electronics & Devices, the ICT solutions and mobile businesses is expected to increase. ✔ The grain and feedstuff businesses in Foods & Grain and the oilfield tubing business in Steel, Materials & Plant will face challenging conditions. ✔ In the Othe

  10. Slide 10: 2-3. FY2017 forecast (segment margin)

    2-3. FY2017 forecast (segment margin) ✔ Electronics & Devices is expected to continue performing well partly due to the effects of acquisitions. ✔ Foods & Grain and Steel, Materials & Plant are expected to face tough conditions as in the previous fiscal year. Billion yen 25.0 Segment margin Electron

  11. Slide 11: 2-4. FY2017 forecast Dividends

    2-4. FY2017 forecast Dividends ✔ Pay dividends stably and continuously, with a consolidated dividend payout ratio of 25% as a goal. ✔ Plan to pay an annual dividend of 6 yen per share in FY2017, remaining unchanged. Yen 7 30 Yen 28.1 27.3 6 yen per year 6 5 yen per year 22.8 25 Including a 23.8 21.9

  12. Slide 12: Appendix

    Appendix © KANEMATSU CORPORATION All Rights Reserved 12

  13. Slide 13: Appendix 1-1. Consolidated Ordinary income (from FY1978)

    Appendix 1-1. Consolidated Ordinary income (from FY1978） 35.0 Billion yen VISION-130 30.0 Bankruptcy of Lehman Brothers 25.0 The best gain The Gulf War 20.0 15.0 Structural 10.0 Reporting on a reform plan consolidated basis started. 5.0 0.0 FY1978 FY1979 FY1980 FY1981 FY1982 FY1983 FY1984 FY1985 FY1

  14. Slide 14: Appendix 1-2. Consolidated Net income (from FY2000)

    Appendix１-2. Consolidated Net income（from FY2000) 25.0 Billion yen Sold the last 19.0 VISION-130 20.0 interests owned 17.3 15.0 15.0 Recorded deferred tax assets 11.8 11.5 10.0 10.0 9.4 5.0 0.0 FY2000 FY2001 FY2001 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 F

  15. Slide 15: Appendix 1-3. Shareholders' Equity & Equity Ratio

    Appendix１-３．Shareholders’ Equity & Equity Ratio Billion yen 120.0 120.0 30.0% Shareholders' Equity Equity Ratio (Right-axis) 100.0 25.0% 93.3 90.1 90.3 80.0 20.0% 71.7 21.2% 20.2% 19.6% 60.0 54.5 16.7% 15.0% 45.6 13.7% 39.0 40.0 10.0% 33.0 33.1 28.9 9.8% 9.1% 24.9 8.5% 7.3% 20.0 5.0% 5.9% 6.0% 0.0 0

  16. Slide 16: Appendix 1-4. Interest-bearing debt & Net debt-equity ratio

    Appendix１-4. Interest-bearing debt & Net debt-equity ratio Billion yen Times 300.0 10.0 270.7 Gross Interest-bearing debt 9.0 250.0 Net interest-bearing debt 8.0 223.7 213.6 Net debt-equity ratio(Right-axis) 6.2 7.0 193.1 200.0 173.6 6.0 160.8 5.4 146.9 150.0 141.9 5.0 136.1 135.2 135.8 148.9 3.8 4.

  17. Slide 17: Appendix 2. Outline of Kanematsu Group

    Appendix 2. Outline of Kanematsu Group Segment Main business Main products Major subsidiaries Semiconductor / electronics parts, Electronic modules / Semiconductor Parts & Equipment materials, Semiconductor Industrial electronics & Kanematsu Electronics Ltd. Electronics materials Printer equipment,

  18. Slide 18: Appendix 3. Subsidiaries and Affiliates (Net sales and Ordinary income)

    Appendix３．Subsidiaries and Affiliates（Net sales and Ordinary income） Ownership 1H of FY2016 1H of FY2017 (Unit: billion yen) Business ratio Net sales Operating profit Net sales Operating profit Kanematsu Electronics ICT solution 58.28% 29.8 3.1 29.8 4.6 Ltd Kanematsu Communications Ltd. Mobile 100%

  19. Slide 19: Appendix 4. Subsidiaries

    Appendix４．Subsidiaries Number of Profitable and Non-Profitable Consolidated Subsidiaries and Affiliates 1H 0f FY2016 1H of FY2017 Year on (Companies) Subsidiaries Affiliates Subsidiaries Affiliates Total Total year Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Number of pro

  20. Slide 20: Appendix 5-1. Segments (Electronics & Devices)

    Appendix5-1. Segments（Electronics & Devices） FY2015 FY2016 FY2017 Change (Unit: billion yen) (results) (1H of results) （results） (1H of results) （results） (1H of results) full-year Net sales 276.9 134.6 277.9 162.1 370.0 27.5 92.1 Operating profit 10.2 4.9 10.7 6.3 13.0 1.4 2.3 Billion yen Operating

  21. Slide 21: Appendix 5-2. Segments (Foods & Grain)

    Appendix5-２. Segments（Foods & Grain） FY2015 FY2016 FY2017 Change (Unit: billion yen) (results) (1H of results) （results） (1H of results) （forecast） (1H of results) full-year Net sales 307.7 163.6 323.1 163.9 340.0 0.3 16.9 Operating profit 3.4 0.7 1.4 0.8 2.7 0.0 1.3 6 Operating profit Billion yen 1

  22. Slide 22: Appendix 5-3. Segments (Steel, Materials & Plant)

    Appendix５-３. Segments (Steel, Materials & Plant) FY2015 FY2016 FY2017 Change (Unit: billion yen) (results) (1H of results) （results） (1H of results) （forecast） (1H of results) full-year Net sales 468.0 196.7 378.9 147.9 340.0 (48.9) (38.9) Operating profit 6.4 1.4 3.4 0.4 2.7 (1.0) (0.7) 3.5 Operati

  23. Slide 23: Appendix 5-4. Segments (Motor Vehicles & Aerospace)

    Appendix５-4. Segments (Motor Vehicles & Aerospace) FY2015 FY2016 FY2017 Change (Unit: billion yen) (results) (1H of results) （results） (1H of results) （forecast） (1H of results) full-year Net sales 59.7 36.3 71.2 34.8 80.0 (1.5) 8.8 Operating profit 2.6 2.3 3.0 1.5 3.0 (0.8) 0.0 3.5 Operating profit

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