Johnson Electric Holdings Limited · HKEX:179
Johnson Electric — FY2022/23 Earnings Presentation
48 slides from Johnson Electric's earnings presentation, May 2023
Slide 1: FY22/23 Annual Results Investor Briefing
FY22/23 Annual Results For the year ended 31 March 2023 Investor May Briefing 2023
Slide 2: Investor Briefing Agenda
FY22/23 Investor Briefing Annual Results Group Overview Why Invest in Key Financial Johnson Electric? Highlights Operating Results Outlook Supplemental Information
Slide 3: Group Overview
Group Overview 3 Improving the Quality of Life of Everyone We Touch Through Our Innovative Motion Systems Automotive Industry Components & Products Group Products Group Services We have the know-how, Smart home and IoT, carbon Vertical integration of component technology and manufacturing reduction,
Slide 4: History & Development
4 History & Development Sales US$ 3.6bn 3.1bn Hong Kong HK listed company Global family business leveraging China to multinational 2.1bn supply the world 1.7bn 1.1bn 677m 251m 126m 16m 54m Fiscal 1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2023 Year Founded by AC motor Listed on
Slide 5: Driving a Sustainable Future
5 Driving a Sustainable Future A World of Motion. Powered by Sustainable Innovation…
Slide 6: Strategies
6 Strategies Focus Invest Build Align Acquire Develop on serving in a resilient design and selective and customers technological global production businesses whose products innovation manufacturing retain processes with that bring are aligned to to provide footprint the industrial complementary a di
Slide 7: Investor Briefing Agenda
FY22/23 Investor Briefing Annual Results Group Overview Why Invest in Key Financial Johnson Electric? Highlights Operating Results Outlook Supplemental Information
Slide 8: Why Invest in Johnson Electric
Why Invest in 8 Johnson Electric Innovative motion solutions for today and One of the World’s the future Largest Providers of Motion Solutions in Geographically diverse, blue-chip electric motors, customer base actuators, motion subsystems and related Global operating footprint with vertical electro
Slide 9: Division Product Overview
9 Division Product Overview •••• Automotive Industry Products Products Group Group • Braking • Transmission • Business • Medical devices • Closure & driveline equipment • Power tools • Interior • Vision • E-bikes • Robotics • Steering • Suspension • Home • Smart metering • Thermal • Pumps automation
Slide 10: Diversified Sales
10 Diversified Sales A World of Motion. Powered by Sustainable Innovation…
Slide 11: Diversified Customer Base
Diversified Customer Base 11 World-class Customers Across Diversified Industries 400+ Automotive Customers 1200+ Non-Auto Customers Disclaimer: All customer tradenames and trademarks are the property of their respective owners. Their use in this presentation is for identification purposes only. A Wo
Slide 12: Innovative Solutions for Proliferating Applications
Innovative Solutions 12 for Proliferating Applications For Today & the Automotive Smart Home & Electrification & Healthcare E-Commerce & IOT Environment Industrial Subsystems and Home automation for Zero-carbon solutions Medical device Delivery robots, components that windows and robotic for mobilit
Slide 13: Market shift to net zero: APG's Growth Opportunity
Market shift to net zero 13 APG’s Growth Opportunity • • • A World of Motion. Powered by Sustainable Innovation…
Slide 14: JE Automotive Products Enabling Electrification and Reducing Emissions
JE Automotive Products 14 Enabling Electrification and Reducing Emissions ICE BEV Powder Metal JE Generator Applications Suitable Shift- by-wire for All Vehicle Types parts Mild HEV PHEV Thermal 48V system Brushless Management DC module HEV Cooling Large fan Oil carrier module pump Vision Pump gear
Slide 15: Well Positioned for Growth in New Energy Vehicles
JE Automotive Products 15 Well Positioned for Growth in New Energy Vehicles (NEV) Electric Integrated JE Mild HEV BEV supercharger system blower thermal management system Applications targeting 48V system Generator Hybrid & BEV HEV PHEV Mild HEV HEV PHEV E-water Planetary BEV pump assemblies Fuel pu
Slide 16: Well Positioned to Capitalize on the Automotive Market Move
Well Positioned 16 to Capitalize on the Automotive Market Move Our Net Business Opportunities for NEV Source: Johnson Electric analysis – indicative based on current available market intelligence and estimates A World of Motion. Powered by Sustainable Innovation…
Slide 17: Recent Automotive Business Wins for New Energy Vehicles
Examples of 17 Recent Automotive Business Wins for New Energy Vehicles Braking Applications Our innovative products are winning Brake booster, e-parking lock, e-parking brake and electric vacuum pump for safety business on major NEV platforms and shorter braking distance, lower weight, and energy re
Slide 18: Autonomous Driving & Connectivity
18 Autonomous Driving & Connectivity Smart Smart Steering & Vision Closure Cabin Braking Window lift and sunroof motor Seat adjuster motor Steering-by-wire motor LiDAR motor Electro-mechanical braking motor Power door Sensor washing system opening motor Brake-by-wire Power lift tailgate / frunk moto
Slide 19: IPG Growth Supported by Megatrends
IPG Growth 19 Supported by Megatrends Smart Home and Internet of Things Focusing on sustainable growth Electrification & Environment prospects E-commerce & Industrial Touching Human Needs Healthcare Improving Performance A World of Motion. Powered by Sustainable Innovation…
Slide 20: Winning Market Traction: Medium-term Sales Outlook
Winning 20 Market Traction Medium-term sales outlook 5-9% US$ 5.6bn CAGR US$3.6bn New business wins US$ 4.7bn and opportunities 2-4% 2-3% Global Global are set to sustain GDP vehicle growth growth growth FY22/23 Actual FY27/28 Forecast Note: Estimated total Group sales outlook based on customer orde
Slide 21: Global Operating Footprint
Global Operating Footprint 21 Operating in 22 Countries across 4 Continents Manufacturing sites Sales & support offices Engineering sites Manufacturing, sales & support, and engineering sites A World of Motion. Powered by Sustainable Innovation…
Slide 22: ESG is Integral to Johnson Electric's Evolution: CO2 and Energy Targets
ESG is Integral to 22 Johnson Electric’s Evolution Our environmental strategy and policies CO2 and Energy Targets address: Energy and climate Waste Water Emissions Climate risks A World of Motion. Powered by Sustainable Innovation…
Slide 23: ESG is Integral to Johnson Electric's Evolution
ESG is Integral to 23 Johnson Electric’s Evolution We are a truly global team We thrive on innovation and We believe that hiring the right bound together by our shared excel in execution. We are people and putting them in the values. We recognize that the committed to making our right jobs maximize
Slide 24: ESG: Flagship JETC and JEnerations Programmes
ESG is Integral to 24 Johnson Electric’s Evolution JETC bringing education to the Our JEnerations teams organize underprivileged in China & Mexico local community activities Our flagship JETC and JEnerations programmes give testimony to our commitment to contributing to local communities, wherever w
Slide 25: Key Sustainability Achievements in FY22/23
ESG is Integral to 25 Johnson Electric’s Evolution Key sustainability achievements in FY22/23 Sustainability Reduced absolute Zero waste Established a aligns with carbon emissions by Diversity, Equity and to landfill 20% Inclusion Committee our business 15 operating sites Launched values, goals, now
Slide 26: Investor Briefing Agenda
FY22/23 Investor Briefing Annual Results Group Overview Why Invest in Key Financial Johnson Electric? Highlights Operating Results Outlook Supplemental Information
Slide 27: Financial Highlights
27 Financial Highlights A World of Motion. Powered by Sustainable Innovation…
Slide 28: Financial Highlights
28 Financial Highlights A World of Motion. Powered by Sustainable Innovation…
Slide 29: Investor Briefing Agenda
FY22/23 Investor Briefing Annual Results Group Overview Why Invest in Key Financial Johnson Electric? Highlights Operating Results Outlook Supplemental Information
Slide 30: Group Sales Changes FY22/23 vs. FY21/22
Group Sales Changes 30 FY22/23 vs. FY21/22 Reported sales increased 6% 11% underlying growth excluding currency movements and acquisitions A World of Motion. Powered by Sustainable Innovation…
Slide 31: APG Sales Growth vs. Light Vehicle Production
APG Sales Growth vs. Light Vehicle Production 31 FY22/23 vs. FY21/22 Outperformance in all regions compared to light vehicle production due to: • New business wins and volume increases from recent wins • Market shift to NEV A World of Motion. Powered by Sustainable Innovation…
Slide 32: APG Multi-Year Sales Changes vs. Light Vehicle Production
APG 32 Multi-Year Sales Changes vs. Light Vehicle Production Consistently outperforming light vehicle production, due to APG’s focus on: • Enabling battery-electric & hybrid vehicles • Weight reduction • Safety & comfort Note: Lines for chart refer to cumulative performance A World of Motion. Powere
Slide 33: IPG Sales Growth by Region
IPG Sales Growth by Region 33 FY22/23 vs. FY21/22 Reduced end- market demand for some home-centric applications Partially offset by: • Price adjustments • Growth across several segments in Europe & the Americas A World of Motion. Powered by Sustainable Innovation…
Slide 34: IPG Multi-Year Sales Trend
IPG 34 Multi-Year Sales Trend Product launches over the past few years to access new growth areas helped mitigate the decline in demand for home-centric products in FY22/23 A World of Motion. Powered by Sustainable Innovation…
Slide 35: Adjusted Net Profit FY22/23 vs. FY21/22
Adjusted Net Profit 35 FY22/23 vs. FY21/22 Increased sales & productivity improvements benefited profit, offset by higher raw material & energy costs & unfavourable currency movements A World of Motion. Powered by Sustainable Innovation…
Slide 36: Working Capital and CAPEX
36 Working Capital and CAPEX Trade and Other Receivables Trade and Other Payables US$ Days US$ Days million sales million purchases outstanding* outstanding** Inventories Capital Expenditure US$ Days US$ CAPEX as million inventory million % of sales on hand A World of Motion. Powered by Sustainable
Slide 37: Free Cash Flow from Operations
37 Free Cash Flow from Operations * Capital expenditure, net of subsidies & proceeds from disposal of fixed assets A World of Motion. Powered by Sustainable Innovation…
Slide 38: Utilization of Free Cash Flow
38 Utilization of Free Cash Flow A World of Motion. Powered by Sustainable Innovation…
Slide 39: Dividends
39 Dividends Note: Scrip dividend offered as an alternative since the interim dividend of FY18/19 A World of Motion. Powered by Sustainable Innovation…
Slide 40: Investor Briefing Agenda
FY22/23 Investor Briefing Annual Results Group Overview Why Invest in Key Financial Johnson Electric? Highlights Operating Results Outlook Supplemental Information
Slide 41: Outlook
41 Outlook • Near-term • Fragility in the global economy – Inflation and interest rates threaten to push some developed economies into recession • Distorting effects of the pandemic on demand and supply have begun to ease • FY23/24 – Budgeting for 5% to 7% sales growth • Medium and long-term • Well
Slide 42: Investor Briefing Agenda
FY22/23 Investor Briefing Annual Results Group Overview Why Invest in Key Financial Johnson Electric? Highlights Operating Results Outlook Supplemental Information
Slide 43: Profitability Review FY22/23 vs. FY21/22
Profitability Review 43 FY22/23 vs. FY21/22 A World of Motion. Powered by Sustainable Innovation…
Slide 44: Profitability Review FY22/23 vs. FY21/22
Profitability Review 44 FY22/23 vs. FY21/22 A World of Motion. Powered by Sustainable Innovation…
Slide 45: From Reported to Adjusted Net Profit
45 From Reported to Adjusted Net Profit 1. Unrealized gains or losses relating to exchange rate movements are significant non-cash items. Restructuring and other related costs are not part of the routine operations of the Group. This adjusted measure of net profit excluding non-cash foreign exchange
Slide 46: Average Exchange Rates FY22/23 vs. FY21/22
Average Exchange Rates 46 FY22/23 vs. FY21/22 A World of Motion. Powered by Sustainable Innovation…
Slide 47: Acquisition of 80% stake in Pendix GmbH in October 2022
Acquisition of 47 80% stake in Pendix GmbH in October 2022 Based in Germany, Well-established Pendix designs, technology-driven manufactures, and player in the e-bike brings to market industry complete electric Enables Johnson cargo bikes and Electric to expand electric drives for our e-mobility bic
Slide 48: Disclaimer
48 Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric. Words such as “outlook”, “expects”, “anticipates”, “inte
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