Sanken Electric Co., Ltd. · TSE:6707
Sanken Electric — 1H FY March 2021 Earnings Presentation
20 slides from Sanken Electric's earnings presentation, Nov 9, 2020
Slide 1: Financial Results Presentation
Financial Results Presentation 1st Half of Fiscal Year Ending March 2021 November 9, 2020 Sanken Electric Co., Ltd. 0
Slide 2: Table of Contents
Table of Contents • 1H Financial Results • Guidance for FY March 2021 • Basis for Cash Allocation - Resolving management issues - Establishing development and production bases Sanken Electric Co., Ltd. 1
Slide 3: 1H Financial Results
1H Financial Results Sanken Electric Co., Ltd. 2
Slide 4: Takeaways
Takeaways 1H sales were JPY 68.1 billion with operating loss of JPY 0.6 billion, and both Semi Devices and Power Systems performed better than forecasts announced in August. Compared to the initial forecasts, sales for autos in Semi Devices increased by 9% and for industrial and consumer markets
Slide 5: Consolidated Results: 1H FY March 2021
Consolidated Results: 1H FY March 2021 (Billions of Yen) vs 1H Forecast FY Mar. 20 FY Mar. 21 2Q vs 1Q in Aug. 1Q 2Q 1H 1Q 2Q 1H Amount ％ Amount ％ Sales 37.8 40.5 78.3 31.6 36.5 68.1 +4.9 +15.6 +3.1 +4.8 Semi Devices 33.6 34.3 67.9 28.1 31.9 60.0 +3.9 +13.8 +3.0 +5.3 Power Systems 4.3 6.2 10.4 3.5 4
Slide 6: Semi Device Sales Trend by Market
Semi Device Sales Trend by Market ・Autos: Down 20% YoY and up 15% QoQ due to customers’ production recovering earlier than expected ・White Goods: Up 8% YoY and 15% QoQ due to recovery in China and sharply increased demand in Korea ・Industrial & Consumer: Up 8% YoY and 10% QoQ due to increased shipme
Slide 7: Guidance for FY2021
Guidance for FY2021 Sanken Electric Co., Ltd. 6
Slide 8: Sales and Production Coexisting with COVID-19
Sales and Production Coexisting with COVID-19 No. of customer Sales Activities meetings ・Domestic restrictions on face-to-face meetings relaxed About from 2Q onward and meetings with customers increased. double Face- Design and development meetings effectively used to-face teleconferencing. Online
Slide 9: Guidance for FY March 2021
Guidance for FY March 2021 Basis for setting FY2021 full-year forecast <Rationale> Domestically, business coexisting with COVID-19 appears to be taking root. Overseas is still seeing an increase in infections and trends will be carefully ascertained. The sales forecast has been made to incorpora
Slide 10: Semi Devices: Market-by-Market Outlook
Semi Devices: Market-by-Market Outlook Automotive Market • In the August guidance, global production outlook was 65 million units of automobiles, but with the latest information, the trend is toward recovery and 75 million units. • In China and the US, production volume is trending toward recovery.
Slide 11: Semi Devices: Market-by-Market Outlook
Semi Devices: Market-by-Market Outlook White Goods Market • Current orders are trending strongly. • Chinese air conditioner energy-saving standards were unified in July, inverter production steadily increased for four major companies, leading to expanded demand for our products. Online sales were al
Slide 12: Semi Devices: Market-by-Market Outlook
Semi Devices: Market-by-Market Outlook Industrial Market • Shrinkage of the entire market due to US-China trade friction and the impact of COVID-19. Furthermore, signs are also appearing of securing inventories in the supply chain. • In the market for OA equipment such as printers, production has re
Slide 13: Guidance for FY March 2021
Guidance for FY March 2021 (Billions of Yen) FY20 Actual FY21 Projection Y on Y Changes 1H 2H Full Year ％ 1H 2H Full Year Amount (Actual) (Forecast) (Forecast) Sales 78.3 81.9 160.2 68.1 75.9 144.0 -16.2 -10.1 Semi Devices 67.9 70.1 138.0 60.0 65.5 125.5 -12.5 -9.0 Power Systems 10.4 11.8 22.2 8.1 1
Slide 14: Trend of Consolidated Sales, Orders, and Backlog
Trend of Consolidated Sales, Orders, and Backlog ・Current orders for autos are trending toward recovery and will further improve in 3Q to 4Q. ・Orders for white goods started to return, mainly in air conditioners for China, from 2Q and are projected to be on a par year by year in 4Q. ・In Power System
Slide 15: Semi Devices: Guidance for Sales by Market
Semi Devices: Guidance for Sales by Market ・Sales for autos remained in inventory adjustment until 2Q, projected to recover from 3Q onward. ・Despite increased production in China, white goods will fall just short of last year due to adjustments in Korea. ・For industrial and consumer markets, despite
Slide 16: Basis for Cash Allocation
Basis for Cash Allocation Sanken Electric Co., Ltd. 15
Slide 17: Basis for Cash Allocation
Basis for Cash Allocation Envisaged Uses: Resolving Management Issues １ Strengthen Financial Qualities ・Repay short- and long-term borrowings ・Redeem corporate bonds 2 Structural Reform ・Costs associated with closure of factories from Kashima Sanken Co., Ltd., Ishikawa Sanken Co., Ltd. and Korea San
Slide 18: Establishment of Development and Production Bases for Power Modules
Establishment of Development and Production Bases for Power Modules Sanken HQ, Production Development Center ・Construction due to finish in April 2021 ・Planning and R&D on elemental technologies for new products and new production line ・Concentrate production technicians, accelerate development re
Slide 19: Financial Results Presentation for 1st Half of Fiscal Year ending March 2021
Financial Results Presentation for 1st Half of Fiscal Year ending March 2021 Sanken Electric Co., Ltd. 18
Slide 20: Notice on Forward-looking Statement
Notice on Forward-looking Statement This presentation contains forward-looking statements with respect to the Company’s and its group affiliates’ future results, plans and policies, strategies, performance goals and scheduled targets, and the management’s views and judgments that are not yet firmly
Sanken Electric — 1H FY March 2021 Earnings Presentation on 6ix