JVCKENWOOD Corporation · TSE:6632
JVCKENWOOD — Q3 FYE March 2020 Earnings Presentation
31 slides from JVCKENWOOD's earnings presentation, Feb 3, 2020
Slide 1: Results and Forecast Briefing, Third Quarter FYE March 2020
Translation for Reference Only JVCKENWOOD Results and Forecast Briefing Third Quarter of Fiscal Year Ending March 2020 （IFRS) February 3, 2020 JVCKENWOOD Corporation Copyright © 2020 JVCKENWOOD Corporation. All rights reserved.
Slide 2: Business Domains
Business Domains *All figures in this document are prepared in accordance Media Service Sector (MS) Others with International Financial Reporting Standards (IFRS). ■Media Business ■DX※ Business, etc. ※ Digital Transformation ・Solutions/Lifestyle/Brand video cameras, headphones, Automotive Sector (AM
Slide 3: Agenda
1. Overview of 3Q Financial Results for FYE3/’20 2. Full-Year Earnings Forecast for FYE3/’20 3. Major Initiatives
Slide 4: Overview of 3Q Financial Results for FYE3/'20
1. Overview of 3Q Financial Results for FYE3/’20 2. Full-Year Earnings Forecast for FYE3/’20 3. Major Initiatives
Slide 5: Financial Results for 3Q (1-3Q) of FYE3/'20 - Highlights
Financial Results for 3Q (1-3Q) of FYE3/’20 - Highlights ◼ Revenue of the JVCKENWOOD Group as a whole declined due to lower revenue of the AM Sector and the MS Sector although the PS Sector and Others posted higher revenue. ◼ Core operating income of the JVCKENWOOD Group as a whole declined due to p
Slide 6: Trends in Quarterly Results
Financial Results for 3Q (1-3Q) of FYE3/’20 - Trends in Quarterly Results Revenue Core Operating Income (Billion yen) FYE3/’18 FYE3/’19 FYE3/’20 （Billion yen） 100.0 1,000 5.0 50 83.7 80.9 80.0 800 72.6 75.5 72.6 76.5 77.6 73.6 73.1 72.7 4.0 40 68.9 2.9 60.0 600 3.9 3.0 30 2.5 2.3 Revenue 40.0 400 1.
Slide 7: Results by Sector
Financial Results for 3Q (1-3Q) of FYE3/’20 - Results by Sector （Billion yen） 3Q (1-3 Q) 3Q (1-3Q) Factors FYE3/’19 FYE3/’20 YoY change YoY change (amount) (percentage) * Revenue of the AM Sector as a whole decreased although revenue of the Aftermarket Revenue 127.9 115.0 -12.8 -10.0% Business was f
Slide 8: Consolidated Revenue (by Sector)
Financial Results for 3Q (1-3Q) of FYE3/’20 - Consolidated Revenue (by Sector) (Billion yen) Consolidated Revenue (by Sector) 2,400 240.0 -10.0 ＋6.7 -4.3 2,200 220.0 +1.6 -1.3 MS Others AM PS （DX Business, etc.） 226.7 2,000 200.0 219.4 Impacts of foreign exchange 1,800 180.0 00 1,600 FYE3/’19 FYE3/’
Slide 9: Quarterly Results (AM Sector)
Financial Results for 3Q (1-3Q) of FYE3/’20 - Quarterly Results (AM Sector) Revenue Core Operating Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 FYE3/’20 50.0 500 47.2 5.0 50 43.3 43.0 43.0 41.8 41.7 40.2 40.8 40.1 40.0 400 38.3 36.7 4.0 40 3.0 30.0 300 3.0 30 2.0 2.2 1.8 20.0 200 1.5 1.7 1.4
Slide 10: Quarterly Results (PS Sector)
Financial Results for 3Q (1-3Q) of FYE3/’20 - Quarterly Results (PS Sector) Revenue Core Operating Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 FYE3/’20 25.0 250 5.0 50 21.3 Professional Systems Communication Systems 20.0 200 19.0 18.0 4.0 40 17.4 17.5 17.0 16.4 16.2 14.7 15.4 15.0 150 13.4
Slide 11: Quarterly Results (MS Sector)
Financial Results for 3Q (1-3Q) of FYE3/’20 - Quarterly Results (MS Sector) Core Operating Revenue Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 FYE3/’20 25.0 250 5.0 25 20.0 200 4.0 20 16.3 15.7 14.5 14.6 15.0 14.2 14.3 15.0 150 14.0 14.2 13.6 13.6 3.0 15 10.0 100 0.8 0.7 10 2.0 0.5 0.5 0.4
Slide 12: Quarterly Results (Others)
Financial Results for 3Q (1-3Q) of FYE3/’20 - Quarterly Results (Others) Core Operating Revenue Income (Billion yen) （Billion yen） FYE3/’18 FYE3/’19 FYE3/’20 5.0 50 4.7 0.5 5 Others DX Business 4.0 4.0 40 0.4 4 0.3 3.2 3.0 3.0 30 0.3 0.3 3 2.6 0.2 2.0 20 1.6 0.2 2 1.5 1.3 1.2 1.2 1.3 1.0 10 0.1 1 0.
Slide 13: Consolidated Revenue (by Region)
Financial Results for 3Q (1-3Q) of FYE3/’20 - Consolidated Revenue (by Region) (Billion yen) Consolidated Revenue (by Region) 2,400 240.0 ＋1.9 -1.4 -3.8 Japan Americas -0.0 +0.2 -4.3 Europe 220.0 2,200 Asia/ China Others 226.7 2,000 200.0 219.4 Impacts of foreign exchange 180.0 1,800 0 1,600 FYE3/’1
Slide 14: Trends in Consolidated Revenue by Region
Financial Results for 3Q (1-3Q) of FYE 3/’20 - Trends in Consolidated Revenue by Region Revenue (Billion yen) FYE3/’18 FYE3/’19 FYE3/’20 100.0 1,000 Others Asia/China Europe 80.0 800 1.3 9.3 1.5 Americas Japan 1.6 1.5 1.2 9.6 1.2 1.3 1.4 1.4 1.7 9.5 10.1 1.2 10.2 8.9 9.3 14.6 9.5 9.7 9.9 12.5 60.0 9
Slide 15: Consolidated Core Operating Income (by Sector)
Financial Results for 3Q (1-3Q) of FYE 3/’20 - Consolidated Core Operating income (by Sector) (Billion yen) Consolidated Revenue (by Sector) 8.0 80 6.0 60 AM -4.0 -0.6 +0.7 40 4.0 MS Others 6.2 （DX Business, etc.） PS +1.9 4.3 2.0 20 0 FYE3/’19 FYE3/’20 3Q (1-3Q) 3Q (1-3Q) 15
Slide 16: Consolidated Profit/Loss (Summary)
Financial Results for 3Q (1-3Q) of FYE 3/’20 - Consolidated Profit/Loss (Summary) ◼ For 3Q (1–3Q) of FYE3/’20, the amount of 650 million yen was recorded in structural reform expenses related mainly to the AM Sector under Other Expenses. （Billion yen） 3Q (1-3Q) 3Q (1-3Q) YoY Change FYE3/'19 FYE3/'20
Slide 17: Financial Position (Summary)
Financial Results for 3Q (1-3Q) of FYE 3/’20 - Financial Position (Summary) ◼ As a result of the application of IFRS 16 Leases, total assets and total liabilities increased 8,400 million yen and 9,800 million yen respectively, and equity decreased 1,400 million yen on the balance sheet at the beginn
Slide 18: Cash Flow (Summary)
Financial Results for 3Q (1-3Q) of FYE 3/’20 - Cash Flow (Summary) ◼ Net cash provided by operating activities increased, reflecting an increase in depreciation and amortization expenses and improvement in working capital. ◼ Net cash used in investing activities decreased due to the absence of M&A i
Slide 19: Full-Year Earnings Forecast for FYE3/'20
1. Overview of 3Q Financial Results for FYE3/’20 2. Full-Year Earnings Forecast for FYE3/’20 3. Major Initiatives
Slide 20: Full-year Earnings Forecast for FYE3/'20
Full-year Earnings Forecast for FYE3/’20 ◼ Operating profit for the first nine months of FYE3/’20 was in line with period-start projections although revenue slightly fell short of projections, affected by foreign exchange rates. ◼ For 4Q, the full-year earning forecast will be left unchanged due to
Slide 21: Major Initiatives
1. Overview of 3Q Financial Results for FYE3/’20 2. Full-Year Earnings Forecast for FYE3/’20 3. Major Initiatives
Slide 22: Major Initiatives in the AM Sector Toward the Next Fiscal Year
Major Initiatives in the AM Sector Toward the Next Fiscal Year ◼ Carry out structural reforms in keeping with the changing market ➢ Structural reforms for the R&D base in Singapore in response to declining demand for car audio and analog communication systems (headcount reduction) ≫ Approx. 260 empl
Slide 23: Demonstration at CES 2020
Demonstration at CES 2020* ◼ Demonstrated our engineering strategy and solutions for the future of the JVCKENWOOD Group as a whole rather than on a existing-product-brand basis ➢ Highlighted new dashcam products, telematic solutions and an engineering roadmap for the future as a Technology- Based Co
Slide 24: AM Sector: OEM (Dealer-Installed Products)
AM Sector: OEM (Dealer-Installed Products) ◼ AV memory car navigation and dashcam systems made by the Company were adopted for “Gathers,” a Honda Motor factory-installed accessory option and started shipping from October to expand dealer-installed option business. ➢ Enable high video quality, quick
Slide 25: AM Sector: Aftermarket Business
AM Sector: Aftermarket Business ◼ Launched in January a dual-camera ◼ In March, we will roll out display audio dashcam product that enables systems that support “Apple CarPlay” operation and display via 2020 “Android Auto” in the U.S., deploying a Saisoku-Navi models and a car lineup catering to a w
Slide 26: PS Sector: Communications Systems Business
PS Sector: Communications Systems Business ◼ Acquired orders for professional digital radio systems for California Highway Patrol in the U.S. Won business worth approx. 3.0 billion yen in total over the next three years ➢ Will be equipped on 3,300 vehicles, as mixed protocol operation (P25 Phase 1&
Slide 27: PS Sector: Professional Systems Business (JKPI and Healthcare)
PS Sector: Professional Systems Business (JKPI and Healthcare) ◼ Expand sales of Video and Audio Solutions ◼ Begin clinical trials in Japan and Australia products such as surveillance systems, with the aim of obtaining medical device signage and wireless intercoms that are approval for gaze tracking
Slide 28: MS Sector: Media Business
MS Sector: Media Business ◼ The rollout of new models HA-A10T ◼ Portable Power Supply, a new and HA-XC50T resulted in our market product model rolled out in October share for completely wireless last year, is doing well. Deploy earphones soaring in November and actively in various sales channels Dec
Slide 29: MS Sector: Entertainment Business
MS Sector: Entertainment Business ◼ Promising works for the fourth quarter ➢ Go with the Flow, Takuya Kimura [album] (January) ➢ Keisuke Kuwata & The Pin Boys Little Sad Bowler [single] (February) ➢ Sakanaction SAKANAQUARIUM 2019 “834.194” Little Sad Bowler 6.1ch Sound Around Arena Session Go with t
Slide 30: DX Business
DX Business ◼ Start demonstration experiments from ◼ Demonstrate telematics solutions February for physical and cognitive adopted by the MS&AD Group and driver functions using dashcam and Grab at CES 2020 Drawing much gaze tracking system Gazefinder, attention from industry professionals. jointly wi
Slide 31: Forward-looking statements and risk factors
The expressions contained in this presentation referring to the Company's future plans, intentions and expectations are categorized as future forecast statements. Such statements reflect management expectations of future events, and accordingly, are inherently susceptible to risk, uncertainty and ot