Financial Results for Q3 FY2024
November 20, 2024
Sanden Corporation
© 2024 SANDEN CORPORATION | 1/11 |
Financial Results for Q3 2024
- Key points of Q3 financial results
- Revenue by Segment
- Variance analysis from the previous year
- Key Indicator Trends
- Consolidated Balance Sheet
6. Business Topics | １６ |
© 2024 SANDEN CORPORATION
１．Key points of Q3 financial results
Sanden Corporation
2024 3Q Financial Results
- Revenue ］
Global vehicle production volume in the third quarter was slightly weaker than the previous year, while demand in Europe, the company's main market, decreased compared to the previous year. Sales increased by 6.1 billion yen compared to the same period last year. Excluding the impact of exchange rates of +10 billion yen, sales decreased by 3.9 billion yen.
1 ・In Europe, demand for trucks continued to decline due to an increase in imported EVs and the sluggish economy, resulting in a decrease in revenue excluding the effect of foreign exchange rates.
・In China, revenue decreased due to sluggish sales of EV vehicles within the country.
・In Asia, revenue continued to increase due to growth in sales to local OEMs, mainly in India. ・In Japan, sales of passenger vehicles decreased but sales of special vehicles increased.
・In the Americas, revenue increased due to increased sales volume for EVs and trucks.
- Profit ］
As sales volume stagnates, logistics and raw material costs remain high. In order to absorb the impact, we continued price negotiations to | |
limit the impact. | |
In Asia, capacity utilization improved due to increased sales, while in the Americas, full-scale operation of electric compressors created | |
2 | temporary loads, causing productivity improvements to stagnate. On the other hand, we steadily promoted improvements in SG&A |
expenses and cost reductions, and although there was a significant improvement compared to the previous year due to the impact of |
exchange rates, the increase in profits was reduced due to active allocation to growth investments. Operating profit increased by 2.1 billion yen compared to the same period last year. Ordinary profit increased by 2.2 billion yen, ensuring a profit for the third quarter since 2018. Net income for the current period increased by 1.9 billion yen, turning from a deficit in the same period last year to a profit.
EBITDA was 5.2 billion yen, an increase of 2.9 billion yen from the previous year, mainly due to the increase in ordinary income.
- Measures ］
Strengthened and promoted measures to respond to the environmental changes that have become evident since the beginning of the fiscal
3 year.
In response to the rise in fuel and raw material costs due to the continued depreciation of the yen, thoroughly negotiated prices and accelerated cost reductions.
Reduced air and ocean freight costs in response to longer lead times for shipments to Europe due to the Red Sea crisis.
© 2024 SANDEN CORPORATION | 3/11 |
１．Key points of Q3 financial results
Overview of Consolidated Financial Results
Sanden Corporation
2024 3Q Financial Results
FY2023 | FY2024 | Year-on-Year | |||||
[Unit：¥100M] | Difference | Rate of | |||||
Jan - Sep 2023 | Jan - Sep 2024 | ||||||
Change | |||||||
Revenue | 1,317 | 1,378 | 61 | 4.6% | |||
Automotive | 1,308 | 1,366 | 58 | 4.4％ | |||
components | |||||||
Others | 9 | 12 | 3 | 33.3% | |||
Operating profit | △64 | △43 | 21 | － | |||
Equity in net income of affiliates※ | 37 | 39 | 2 | 5.4% | |||
Exchange | 12 | 4 | △8 | △66.7% | |||
Ordinary profit | △22 | 0.5 | 22 | － | |||
Net income | △18 | 1 | 19 | － | |||
attributable to owners of the parent | |||||||
EBITDA | 23 | 52 | 29 | 150% | |||
Exchange | US＄ | ¥138 | ¥151 | ¥13 | |||
EUR | ¥149 | ¥164 | ¥15 | ||||
※Equity in net income affiliates: This mainly relates to Sanden HASCO Automotive Air-Conditioning Co., Ltd., an equity-method affiliate of the Company. (Some of the Company's products are sold through joint ventures in markets such as China, and this revenue is recorded as non-operating income for accounting purposes.)
*Exchange rate: Market average rate | *Actual results are rounded off to the nearest 10 million yen. |
© 2024 SANDEN CORPORATION | 4/11 |
２． Revenue by Segment: by Region
Sanden Corporation
2024 3Q Financial Results
Revenue: ¥136.6 B YoY + ¥5.8 B（+4％）
- Exchange rate impact: +9.9）
※Automotive segment only. Excludes other businesses
[Unit : ¥100M]
Exchange rate impact
Revenue excluding exchange
Year-on-year price ( ) Year-on-year ratio
Regional Composition | Japan area |
Americas area |
Europe area
Asia area
China area
Europe area | China area | Asia area | ||||||
A decline in demand for EVs | Decrease in deliveries to EV | Growth for Indian automakers | ||||||
Weak truck market | vehicles | |||||||
Americas area | Japan area | ||||
Increase in EV | Decrease in passenger vehicles | ||||
increase in special vehicles | |||||
Decrease in aftermarket and for | |||||
Latin America |
600 | +16 | 600 | ||
480 | (+3%) 496 | |||
46 | ||||
400 | 400 | |||
200 | 450 | 200 | ||
0 | 0 | |||
2023 | 2024 | |||
Jan-Sep | Jan-Sep |
600 | ||
-19 | ||
352 | (-6%) | 400 |
333 | ||
18 | ||
200 | ||
315 | ||
2023 | 2024 | 0 |
Jan-Sep | Jan-Sep |
+37 | |
(+16%)267 | |
230 | 19 |
248 |
2023 2024
Jan-Sep Jan-Sep
600 | 600 | |
400 | 400 | |||
+7 | ||||
200 | (+15%)193 | 200 | ±0 | |
167 | 17 | |||
(±0%) | ||||
176 | 78 | 78 | ||
0 | 0 | |||
2023 | 2024 | 2023 | 2024 | |
Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep |
© 2024 SANDEN CORPORATION | 5/11 |
２． Revenue by Segment: by Product | 2024 3Q Financial Results | |
Sanden Corporation | ||
Revenue: ¥136.6 B YoY+¥5.8 B（+4％） | Regional Composition | ITMS |
- Exchange rate impact: +9.9）
※Automotive segment only. Excludes other businesses | EC | MC | ||
[Unit : ¥100M] | ||||
Segment sales | HVAC | |||
Year-on-year price | ||||
( ) Year-on-year ratio |
MC
HVAC
EC
ITMS
Increase in sales of PX compressors | Increased demand in China and other | EU track market slowing down | Increased sales mainly of new energy | ||||||||
+44 | parts of Asia | China's EV market share declines | vehicles | ||||||||
700 | (+6.8%) | 689 | |||||||||
645 | |||||||||||
600 | |||||||||||
500 | 500 | +15 | 500 | -6 | 500 | ||||||
(+4.6%) | |||||||||||
400 | 400 | 400 | (-2.0%) | 400 | |||||||
326 | 341 | ||||||||||
308 | 302 | ||||||||||
300 | 300 | 300 | 300 | ||||||||
200 | 200 | 200 | 200 | +5 | |||||||
100 | 100 | 100 | 100 | 29 (+17.2%) 34 | |||||||
0 | 2023 | 2024 | 0 | 2023 | 2024 | 0 | 2023 | 2024 | 0 | 2023 | 2024 |
Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | ||||
© 2024 SANDEN CORPORATION | 6/11 | ||||||||||
３．Variance analysis from the previous year: EBITDA
Sanden Corporation
2024 3Q Financial Results
Comparison with 3Q cumulative total of 2023
2023 | 2024 | Difference | |
Sales | 1,317 | 1,378 | +61 |
EBITDA | 23 | 52 | +29 |
80
70 [Unit : 100M]
60
50
40
30 | 23 | ||||
+2 | |||||
20 | |||||
▲3 | |||||
10 | ▲2 | ▲1 | |||
0 |
Significant improvement in real terms
- Even after adjusting for exchange rates, the company's performance improved by 2.9 billion yen
- Worsening logistics costs due to the Red Sea issue and other factors, and temporary declines in productivity due to the new launch
- SG&A and cost reduction activities have produced great results
- Continue to strengthen growth investment for future growth
+14
+15 | 52 | ||
+11 | ▲17 | ||
（Advanced | |||
development | |||
+6 | investment） |
+4
2023 | Logistics | Price | Productivity Equity | Administrative Others | Scale | Cost | Exchange |
Jan-Sep | |||||||
costs | method | expenses | composition | reduction | |||
Investment
For
Growth
2024
Jan-Sep
© 2024 SANDEN CORPORATION | 7/11 |
４． Key Indicator Trends: Revenue, Ordinary Profit, EBITDA
Sanden Corporation
2024 3Q Financial Results
Revenue： Increased for the third consecutive year, partly due to the effect of exchange rates. | [Unit : 100M] |
Ordinary profit： Improved due to exchange gains, and equity method gains also remained strong. | |
EBITDA：Increased depreciation and amortization due to continued strengthening of capital investments | |
for future growth, in addition to ordinary profit. |
Revenue
Ordinary Profit
EBITDA
1,280 1,317 1,378
0.5 | 52.0 | ||
22.6 | |||||||||||||
-21.9 | 10.1 | ||||||||||||
-29.0 | |||||||||||||
Actual | 2022 | 2023 | 2024 | Actual | 2022 | 2023 | 2024 | Actual | 2022 | 2023 | 2024 | ||
Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep | Jan-Sep |
© 2024 SANDEN CORPORATION | 8/11 |
４． Key Indicator Trends: Acquisition of new commercial rights / Growth investment
Sanden Corporation
2024 3Q Financial Results
Status of acquisition of new commercial rights
Growth Investment Expenses
※Total Lifetime Revenue of Acquired Commercial Rights (total amount of revenue generated
6000 from the start of mass production to the end of the product's life for each project)
180
160
162
[Unit：100M] | ◆ Product Strategy and Area |
5000 | Strategy (As of 3Q Results) |
[Unit : 100M] | |
140 | 128 |
4000
3000
2000
1000
0
3Q
Actual 3,241
Delay |
3Q
Actual 1,826
120
For new energy vehicles | 94 | ||||||
For internal combustion 100 | |||||||
Customer's | vehicles | ||||||
52% | 80 | ||||||
circumstances | |||||||
48% | |||||||
※Extension due | |||||||
to change in | 60 | ３Q | R&D +17 | ||||
production period | ３Q | ||||||
Actual | Depreciation +６ | ||||||
40 | Actual | 126 | Exchange +６ | ||||
97 |
Acquiring new commercial rights | 20 |
Vehicle details | 0 |
2022 2023 2024
Actual Actual Plan
◆ Most recent major commercial |
rights acquisition |
Priority areas: Europe, | ||
19% | Americas & China | |
Janan / Asia | ||
2022 | 2023 | 2024 |
Actual | Actual | Plan |
- Key drivers of 2023-2024 increase
Europe area | Major customer: PX compressor |
China area | EV manufacture: Air conditioning system |
Asia area | Major Indian customer: PX compressor |
Americas area | EV manufacturer: Air conditioning system |
81%
Acquiring new commercial rights
- R＆D expense
- ITMS development
- EC platform development
- Next generation EC development
- Increase in depreciation expenses due to capital investment
- EC line in Americas
- EC line in Europe
- ECH line in China
Japan area | Construction machinery manufacturer: ITMS |
Major customer: PX compressor |
Focus area ratio
Strengthening strategic investments for proactive future growth
© 2024 SANDEN CORPORATION | 9/11 |
５．Consolidated Balance Sheet
Sanden Corporation
2024 3Q Financial Results
*Number of days: Year-end balance / (most recent 3 months revenue / 90) *Individual items are rounded off, so the total may not match.
Assets
Liabilities・Net Assets
[Unit：¥100M] | [Unit：¥100M] | ||||||||||||
1,672 | 1,625 | 1,659 | 1,672 | 1,625 | 1,659 | ||||||||
Cash and | |||||||||||||
206 | 132 | Trade | 363 | 355 | |||||||||
Deposits | 227 | ||||||||||||
Payables | 381 | ||||||||||||
342 | （84days） | （87days） | |||||||||||
Trade | 355 | 341 | （83days） | ||||||||||
（71days） | |||||||||||||
（72days） | Loans | ||||||||||||
Receivables | （65days） | 356 | |||||||||||
343 | 313 | Payable | 549 | 572 | 648 | ||||||||
Inventory | （73days） | （Net Debt） | （343） | ||||||||||
（70days） | （59days） | （516） | |||||||||||
124 | (345） | ||||||||||||
117 | 84 | ||||||||||||
Others | |||||||||||||
Others | |||||||||||||
538 | 464 | 450 | |||||||||||
705 | |||||||||||||
Fixed Assets | 650 | 659 | |||||||||||
Net Assets | 222 （13.3％） | 208 （12.8％） | 206 （12.4％） | ||||||||||
2023 Sep | 2023 Dec | 2024 Sep | 2023 Sep | 2023 Dec | 2024 Sep | ||||||||
USD:145 | USD:142 | USD:161 | （Owned Capital 213） | （Owned Capital 202） | （Owned Capital 198） | ||||||||
EUR:158 | EUR:157 | EUR:172 | （12.7％） | （12.4％） | （11.9％） |
© 2024 SANDEN CORPORATION | 10/11 |