Shoei Co. Ltd. (7839) · TSE:7839
Shoei Co. Ltd. (7839) — Shoei — FY2020 Earnings Presentation
38 slides from Shoei Co. Ltd. (7839)'s earnings presentation, Nov 26, 2020
Slide 1: Financial Results Briefing for the Fiscal Year Ended September 30, 2020
Securities Code: 7839 Tokyo Stock Exchange, 1st Section SHOEI CO., LTD. Financial Results Briefing for the Fiscal Year Ended September 30, 2020 November 26, 2020
Slide 2: Contents
CONTENTS I Financial Results for the Fiscal Year Ended September 30, 2020 P. 2 II Forecasts for the Fiscal Year Ending September 30, 2021 P. 12 III Growth Strategies P. 18 Appendix: Company Profile P. 28 1
Slide 3: I. Financial Results for the Fiscal Year Ended September 30, 2020
I. Financial Results for the Fiscal Year Ended September 30, 2020
Slide 4: Financial Highlights
1. Operating Results for the Fiscal Year Ended September 30, 2020 (1) Financial Highlights Net Sales/Operating Income/Profit Attributable to Owners of Parent Net Sales Operating Income Profit Attributable to Owners of Parent (Million yen) (Million yen) (Million yen) 25,000 5,000 5,000 4,740 20,000 4
Slide 5: Consolidated Net Sales and Sales Volume by Region
1. Operating Results for the Fiscal Year Ended September 30, 2020 (2) Consolidated Net Sales and Sales Volume by Region Consolidated Net Sales and Sales Volume by Region Net Sales Sales Volume (Million yen) +¥863 million (Thousand units) Sales Volume Sales Volume 20,000 104.6% 19,479 600 18,616 559
Slide 6: Market Environment and Topics in the Fiscal Year Ended September 30, 2020
1. Operating Results for the Fiscal Year Ended September 30, 2020 (3) Market Environment and Topics in the Fiscal Year Ended September 30, 2020 The market environment remained generally favorable until February 2020 before the outbreak of the COVID-19 pandemic led to lockdowns lasting for 2-3 months
Slide 7: Variance Analysis of Operating Income
1. Operating Results for the Fiscal Year Ended September 30, 2020 (4) Variance Analysis of Operating Income (Unit: Million yen) 5,500 Volume factors Increase in Other (excl. China) COGS 5,000 218 121 Price factors (excl. China) 205 1,542 4,740 4,500 Increase in 254 1,287 SG&A expenses 4,203 4,000 訳注
Slide 8: Consolidated Balance Sheets
1. Operating Results for the Fiscal Year Ended September 30, 2020 (5) Consolidated Balance Sheets Assets Liabilities/Net Assets (Unit: Million yen) (Unit: Million yen) Current liabilities 4,030 Increase in +1790 accounts payable Liabilities 2,240 Non-current 9,383 liabilities 1,180 946 Cash and depo
Slide 9: Consolidated Statements of Cashflow
1. Operating Results for the Fiscal Year Ended September 30, 2020 (6) Consolidated Statements of Cashflow (Unit: Million yen) Profit before income taxes +4,747 Purchase of property, Purchase of Depreciation +907 plant and equipment -1,230 treasury shares -1,293 Increase in inventories -1,627 Dividen
Slide 10: SHOEI - World-Renowned for Premium Helmets
2. SHOEI’s Strengths (1) “SHOEI”-World-Renowned for Premium Helmets Motorcycle helmets which offer the ultimate in cool appearance, safety and functionality Premium helmets which are favored by the world’s top racers and which meet the demanding requirements of riders in more than 50 countries a
Slide 11: Adherence to Made in Japan Principle
2. SHOEI’s Strengths (2) Adherence to “Made in Japan” Principle - balancing development of high value added products and rationalization of production Has own integrated production system at two factories in Japan and has a flexible production capacity enabling any of its production models to be p
Slide 12: Advanced Initiatives in a Wide Range of Fields
2. SHOEI’s Strengths (3) Advanced Initiatives in a Wide Range of Fields Developing ground-breaking new products, new markets and new services to improve customer satisfaction, whilst attaching utmost importance to safety, comfort and excitement Development of advanced helmet functions Identificati
Slide 13: II. Forecasts for the Fiscal Year Ending September 30, 2021
II. Forecasts for the Fiscal Year Ending September 30, 2021
Slide 14: Sales and Profit Forecasts
1. Forecasts for the Fiscal Year Ending September 30, 2021 (1) Sales and Profit Forecasts Net Sales/Operating Income/Profit Attributable to Owners of Parent Net Sales Operating Income Profit Attributable to Owners of Parent (Million yen) (Million yen) (Million yen) 25,000 6,000 5,000 23,350 5,000 5,
Slide 15: Consolidated Net Sales and Sales Volume Forecasts by Region
1. Forecasts for the Fiscal Year Ending September 30, 2021 (2) Consolidated Net Sales and Sales Volume Forecasts by Region Consolidated Net Sales and Sales Volume Forecasts by Region Net Sales Sales Volume (Million yen) Sales Volume (Thousand units) 25,000 700 23,350 666 Sales Volume 1,705 600 20,00
Slide 16: Key Factors Affecting Forecasts for the Fiscal Year Ending September 30, 2021
1. Forecasts for the Fiscal Year Ending September 30, 2021 (3) Key Factors Affecting Forecasts for the Fiscal Year Ending September 30, 2021 The world economy is on path to recovery from the slump caused by COVID-19. However, the situation remains unpredictable due to the high risk of resurgence of
Slide 17: Shareholder Returns
2. Shareholder Returns Trend of Dividend Payout Ratio Our basic policy is to “distribute profits based on our consolidated business results.” We intend to increase shareholders’ equity to strengthen our financial position and operating foundations and we seek to achieve a dividend payout ratio of
Slide 18: Trends of Consolidated Business Results
3. Trends of Consolidated Business Results Net sales Operating income (Million yen) (Million yen) 24.3% 22.5% 22.2% 22.1% 21.8% 22.6% 22.2% 20.6% 23,350 20,000 19,479 6,000 18,616 12.0% 17,148 5,190 2,176 3,690 15,641 5,000 16,000 1,530 4,740 14,244 14,138 2,889 13,406 1,858 4,203 1,996 2,767 890 1,
Slide 19: III. Growth Strategies
III. Growth Strategies
Slide 20: Basic Management Policies and Key Measures
Basic Management Policies and Key Measures Business Concept Quality & Value Management Policies Management Strategies 1 Enhance production framework Commit to ensuring business continuity in Develop high value added products/Tap into 1 the long term through a sound financial 2 diversifying needs pos
Slide 21: Enhance Production Framework
1. Enhance Production Framework Continuously expand production capacity through continued capital expenditure and increased hiring to keep pace with global growth in sales volume Production target for the fiscal year ending Sep. 30, 2021: 670,000 units Capital expenditures Production units 700,0
Slide 22: Develop High Value Added Products/Tap into Diversifying Needs
2. Develop High Value Added Products/Tap into Diversifying Needs Market classic and convenient models with added functions to meet customer needs in response to diversifying rider preferences Enhance R&D framework to accelerate the integration of electronic technology and develop cutting-edge pr
Slide 23: New Model for Introduction in Ending Sep. 2021
New Model for Introduction in the Fiscal Year Ending Sep. 2021 <RF-1400 / Z-8 / NXR2> Sporty, lightweight, compact advanced helmet North America (RF-1400) Launch: Early Dec. 2020 RRP: US$499.99-US$599.99 Europe (NXR2) Launch: Around Oct. 2021 RRP: TBD Japan (Z-8) Launch: Around Spring 2021 RRP: TBD
Slide 24: Strengthen Competitiveness of Manufacturing Sites through Improvement Activities
3. Strengthen Competitiveness of Manufacturing Sites through Improvement Activities Continuously strengthen competitiveness of both factories in Japan through improvement activities using just-in-time system Pursuit of efficiency through “just-in-time” system Production improvement system used f
Slide 25: Sell Products via e-commerce and Showroom Channels
4. Sell Products via e-commerce and Showroom Channels Improve e-commerce sites especially for repair parts, giving careful consideration to the needs of users in countries around the world Opened direct sales showroom SHOEI Gallery Tokyo in March 2020 for new market development EC market develop
Slide 26: Promote PFS (personal fitting service)
5. Promote PFS (personal fitting service) Provide PFS at SHOEI Gallery Tokyo and other SHOEI stores in Japan and other parts of the world and offer a premium service for creating a custom-shaped helmet interior which fits the user perfectly “SHOEI Personal Fitting System” helmet interior adjustmen
Slide 27: Increase Advertising
6. Increase Advertising Extend racer agreement with brothers Marc Márquez and Alex Márquez, both Spanish MotoGP drivers, until the end of 2024 Promotion through sponsor activities X-Fourteen MARQUEZ5 2016-2019 Season No.1 2015 Season No.3 2013-2014 Season No.1 Sales volume of replica model in FY e
Slide 28: Strengthen Sales in Priority Emerging Markets
7. Strengthen Sales in Priority Emerging Markets Strengthen sales and expand promotional activities with a focus on Asia and China, where rider population growth and a bike boom driven by the younger generation is expected in the future Increase of sales in Asia Overview of Asia market Trend of sa
Slide 29: Offer Shareholder Benefits
8. Offer Shareholder Benefits We resolved to introduce a shareholders’ benefit program at a meeting of the Board of Directors held on August 20, 2020. SHOEI novelty goods or a 15% discount coupon for use in directly operated stores SHOEI novelty goods 28
Slide 30: Appendix: Company Profile
Appendix: Company Profile
Slide 31: Company Profile
1. Company Profile Company Name SHOEI Co., Ltd. Head Office 1-31-7 Taito, Taito-ku Tokyo Established on March 17,1959 Manufacture and sale of motorcycle helmets and other helmets for Business description government and other public offices (for the Ministry of Defense and the National Police Agency)
Slide 32: Business Description
2. Business Description We manufacture mainly motorcycle helmets as well as some other helmets for aircraft and armored vehicles. Our sales network encompasses more than 60 countries extending from Japan to Europe, North and South America, Oceania and Asia. We command the largest share of the pr
Slide 33: History
3. History SHOEI SHOEI SHOEI SAFETY HELMET (EUROPA) ITALIA S.R.L. CORPORATION established GMBH established established (Italy) (California, USA) 1994 (Germany) 2011 1968 SHOEI EUROPE BVBA SHOEI SHOEI ASIA CO., established (Belgium: later DISTRIBUTION LTD. liquidated) GMBH established Established 197
Slide 34: Global Network
4. Global Network Head Office U.S.A SHOEI SAFETY HELMET Factories CORPORATION Consolidated Subsidiaries Japan Iwate Factory Ibaraki Factory Head Office Iwate Factory Head Office Thailand SHOEI ASIA CO., LTD. France SHOEI EUROPE DISTRIBUTION SARL Germany SHOEI(EUROPE)GMBH SHOEI DISTRIBUTION GMBH Ital
Slide 35: SHOEI's World-leading Strengths
5. SHOEI’s World-leading Strengths Product strength Manufacturing competitiveness 匠 Finish and Just in Advanced Safety Beauty of form Craftmanship production added value Time system system Global sales competitiveness In-depth research of specific Painstaking and comprehensive Global distribution ne
Slide 36: SHOEI Quality - Premium Helmets Combining Safety, Comfort and Passion
6. SHOEI Quality - Premium Helmets Combining Safety, Comfort and Passion Philosophy SHOEI SAFTY CONCEPT Combining safety, comfort and passion SHOEI believes in two key types of protection Passive Safety Impact protection ─ Performance and safety requirements which protect the rider ─ Safety Complian
Slide 37: Industry Environment
7. Industry Environment In developed markets where the average age of motorcyclists is rising, sales remain brisk, bolstered by strong consumption among high-earning, middle-aged riders but are expected to flatten in the medium and long term. In emerging markets, however, the growing popularity of
Slide 38: ESG Management
8. ESG Management Social Issues Infrastructure for Worsening Falling birth rate and a safe, secure and Lifestyle diversity Multiple labor issues climate change aging population comfortable life Environment Immense creativity and quality Governance to be proud of Prevention of global warming Corporat