Furuno Electric Co., Ltd. · TSE:6814
Furuno Electric — FY2/2020 Earnings Presentation
28 slides from Furuno Electric's earnings presentation, Apr 14, 2020
Slide 1: Financial Results Briefing Materials
As of and for the Year Ended February 29, 2020 Financial Results Briefing Materials April 14, 2020 Points to Note: This document is a translation of the Japanese original. The Japanese original is authoritative. The information listed in these materials the Company’s future prospects as determined b
Slide 2: FY 2/2020 Points of the Results
FY 2/2020 Points of the Results Net Sales: Increase In Japan and Asia, in the Marine Business, sales for newly-built merchant vessels increased. Sales up owing to strong sales of Wireless LAN Access Point for schools in the Wireless LAN Systems. Profit: Decrease The gross profit margin dec
Slide 3: Consolidated Financial Results Highlights
Consolidated Financial Results Highlights Year-over- Year-over- Unit: Millions of Yen FY 2/2019 FY 2/2020 year year （amount） （ratio） Net sales 82,108 83,066 +958 +1.2% Gross profit 31,612 28,524 ▲3,088 ▲9.8% (Sales ratio) （38.5%） （34.4%） （▲4.1） Operating 4,771 2,411 ▲2,360 ▲49.5% income (Sales ratio
Slide 4: Analysis of Increase/Decrease in Net Sales
Analysis of Increase/Decrease in Net Sales (Unit: 100 Millions of Yen) 850 Asia +10.0 845 840 Europe Other Wireless ＋8.2 -2.5 LAN 835 Systems Japan PNT ＋4.9 +7.4 ＋1.1 830 Others ＋0.6 825 Foreign America Exchange -1.8 Health Care Effect 820 -14.4 -4.2 830 Wireless Marine Business Industrial LAN 815 8
Slide 5: Analysis of Increase/Decrease in Profit
Analysis of Increase/Decrease in Profit Analysis of Increase/Decrease Analysis of Increase/Decrease in Gross Profit on Sales in Operating Income (Unit: 100 Millions of Yen) (Unit: 100 Millions of Yen) 330 50 Net Sales increase +3.7 45 320 40 310 48 Production 35 adjustment Foreign Other, Exchange 30
Slide 6: Overview of Marine Business
Overview of Marine Business “100M” in this material indicates 100 Million Net sales by Marine Business /Sales by Region Marine Business: (Unit: 100 Millions of Yen) Net sales 673 100M yen (+1.0% year on year) 800 Segment Profit 20 100M yen (-20 100M yen ) Japan America Europe Asia Other ⇒ Revenue ro
Slide 7: Overview of Industrial Business, Wireless LAN Systems
Overview of Industrial Business, Wireless LAN Systems “100M” in this material indicates 100 Million Net sales by Industrial Business & Wireless LAN Access Point / Sales by Products Industrial Business: (Unit: 100 Millions of Yen) Net sales 116 100M yen (-2.1% year on year) Segment Profit -3 100M yen
Slide 8: Analysis of Financial Condition
Analysis of Financial Condition Short term/Long-term (Unit: 100 Millions of Yen) borrowed money returned within 1 year Cash Accounts and Accounts deposits payable Cash payable Due to our promoting stock reduction 115 and 120 deposits 90 through measures such as production 54 121 32 adjustment, inv
Slide 9: A New Management Vision
A New Management Vision Business Vision； Achieve better safety, security and comfort to bring about a society and sea navigation that considers the needs of people and the environment Human Resources and Corporate Culture Vision； VALUE through GLOBALIZATION and SPEED Growth targets for FY 2/2031；con
Slide 10: Management Vision: Achieving our goal in 3 phases
Management Vision Achieving our goal in 3 phases 【Phase 1・・・Advance】 （FY 2/2021-2/2023） Procure resources and strengthen our capabilities by improving the structure of our businesses. 【Phase 2・・・Connect】 （FY 2/2024-2/2026) Take action toward building a profitable structure and the pillars of our tec
Slide 11: Phase 1 Mid-term Management Plan Outline
Phase 1 Mid-term Management Plan Outline Basic policy; Advance Procure resources and strengthen our capabilities by improving the structure of our businesses. Targets for FY 2/2023 Build a management foundation that can stably achieve the followings. ROE(based on operating income) : 10% or higher Pa
Slide 12: Strengthening Capabilities and Improving Structure
Strengthening Capabilities and Improving Structure (1) Dramatic Reduction of Inventory (2) Further Increase in Quality Level (3) Optimization of Product Development Functions (4) Optimization of Comprehensive Manufacturing Functions (5) New Strategic Investment Quota FURUNO ELECTRIC CO., LTD. All Ri
Slide 13: Dramatic Reduction of Inventory
Dramatic Reduction of Inventory All relevant divisions will work together to reduce inventory, including not just sales, logistics, and manufacturing, but also planning, designing, development, procurement, services, quality assurance, and more. • Raise our ability to respond to a discontinuation of
Slide 14: Further Increase in Quality Level
Further Increase in Quality Level Under our philosophy of prioritizing quality over all else, we will strive to reexamine our back-to-basics quality processes, and, without impeding progress, aim for further improvement. • Formulation and steady execution of a product quality business plan in each b
Slide 15: Optimization of Product Development Functions
Optimization of Product Development Functions While continuing our efforts to improve quality, we will strive to achieve both cost reduction and compliance with deadlines, bring them into effect throughout the company, and transform them into a solid structure that supports the foundations of our co
Slide 16: Optimization of Comprehensive Manufacturing Functions
Optimization of Comprehensive Manufacturing Functions We are eliminating waste with FPS activities* and continuously promoting “1/2 manufacturing.” * FPS stands for “Furuno Production System.” It has been continually implemented since 2012. • Optimization of the global production structure. (Miki Pl
Slide 17: New Strategic Investment Quota
New Strategic Investment Quota Make investment for future growth in Phase 2 and later • Cultivation of new businesses • Research and development including in the advanced technology area • Development of various infrastructure Single pipe as wave guide Antenna unit New building for research & develo
Slide 18: Strategy of the Marine Business: Merchant Vessels
Strategy of the Marine Business Businesses targeting merchant vessels Development of life cycle support and more While expanding our share of the new shipbuilding market and promoting, on a global scale, full “life cycle support” that includes after-sales service and meeting the demand for device up
Slide 19: Strategy of the Marine Business: Fishing Vessels
Strategy of the Marine Business Businesses targeting fishing vessels “Visualization of intuition and experience” to support fishing industry workers on both hard and soft fronts We will aim to raise our profitability, not just by providing various devices held by the fisheries industry, which is whe
Slide 20: Strategy of the Marine Business: Pleasure Boats
Strategy of the Marine Business Businesses targeting pleasure boats Striving to recapture our market share by dramatic reexamination of the business structure In order to regain our share in the global market, we will restructure our business structure and speed up the launch of products from the pe
Slide 21: Initiatives in the System Products Business: PNT
Initiatives in the System Products Business PNT* Business (ITS Business Unite) Striving for evolution of in-house products and solutions and global expansion In the three fields of “Positioning,” “Navigation,” and “Timing,” we will accelerate customer POV-centered development of products and solutio
Slide 22: Initiatives in the System Products Business: Healthcare
Initiatives in the System Products Business Healthcare Business Expanding our business by concentrated investment in corporate management resources for key areas We will focus on China and Southeast Asia, whose markets are expected to grow, as priority regions, and strive to expand our business by p
Slide 23: Initiatives in the Defense Equipment Business
Initiatives in the Defense Equipment Business Defense Equipment Business Anticipatory investment for future growth by diversion of consumer technology We aim to achieve growth from a long-term perspective, by promoting the adaptation of technologies cultivated in the consumer field to defense applic
Slide 24: Initiative in the Wireless LAN System Business
Initiative in the Wireless LAN System Business Wireless LAN System Business Procurement of corporate management resources in businesses targeting in the educational market and anticipatory investment for future growth We will continue to cultivate new markets and develop new businesses while maintai
Slide 25: Forecast of Results and Dividends for FY 2/2021
Forecast of Results and Dividends for FY 2/2021 The consolidated business forecast for the fiscal year ending February 2021 is undecided because it is difficult at this stage to reasonably calculate the impact of the novel coronavirus. Dividends for the next fiscal year are also undecided. We will p
Slide 26: Corporate Profile
Corporate Profile FURUNO ELECTRIC CO., LTD. All Rights Reserved. 26
Slide 27: Outline
Outline Since commercializing the world's first fish finder in 1948, FURUNO has supplied many types of products for the marine electronics market. By using its exclusive knowledge of ultrasonic and electronics technologies, FURUNO has developed a wide array of products that have been world firsts an
Slide 28: FURUNO's Business Fields
FURUNO's Business Fields Automatic GPS/GNSS Identification Disciplined GPS/GNSS System (AIS) Oscillator Displacement Continuous Remote Monitoring Satellite System Communications Meteorological Equipment Monitoring and Analyzing System Wireless Radar Access Points Voyage Data GPS/GNSS Recorder Receiv