JTEKT Corporation · TSE:6473
JTEKT — FY2024 Earnings Presentation
53 slides from JTEKT's earnings presentation, May 14, 2025
Slide 1: Financial results of fiscal year ended March 2025
1/53 Financial results of fiscal year ended March 2025 May 14 th, 2025 JTEKT CORPORATION
Slide 2: Overview of Financial results
Overview of Financial results 2/53 ■ Revenue decreased YoY due to weak sales, especially in Europe and China. ■ Despite favorable foreign exchange rate and cost reduction activities, Result Business profit decreased YoY due to weak sales and continued extra costs caused by low productivity in North
Slide 3: Agenda
Agenda 3/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficienc
Slide 4: 1-1) FY2024 Results – Consolidated performance
1-1) FY2024 Results – Consolidated performance 4/53 ■ Revenue decreased due to weak sales, especially in Europe and China. ■ Business profit decreased due to weak sales and continued extra costs caused by low productivity in North America. ■ Operating profit decreased due to one-time expenses for st
Slide 5: 1-2) FY2024 Results – Business profit analysis
1-2) FY2024 Results – Business profit analysis 5/53 ■ Despite favorable foreign exchange rate, cost reduction activities and recovery from customers (compensation for past year inflation costs and production decrease, etc.) in North America and Europe, business profit decreased due to weak sales and
Slide 6: 1-3) FY2024 Results – by Region
1-3) FY2024 Results – by Region 6/53 ■ Despite continued extra costs caused by low productivity, business profit increased due to recovery from customers in North America. Revenue Business profit Unit : Billion of yen Unit : Billion of yen ratio to revenue(%) 9.6 8.9 7.6 7.6 735.7 739.0 4.3 3.6 2.1
Slide 7: 1-4) FY2024 Results – by Business unit
1-4) FY2024 Results – by Business unit 7/53 ■ Revenue and business profit increase in Machine tools. ■ Business profit decreased in steering systems, drivelines and industrial & bearings due to week sales. Revenue Business profit Unit : Billion of yen Unit : Billion of yen ratio to revenue(%) 9.6 10
Slide 8: Agenda
Agenda 8/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficienc
Slide 9: 2-1) FY2025 Forecast – Consolidated performance
2-1) FY2025 Forecast – Consolidated performance 9/53 ■ Revenue decrease due to unfavorable exchange rate. ※ Sales decrease due to structural reforms in Europe is included. ■ Although business profit decrease due to unfavorable exchange rate, profit margin sustains due to the internal efforts such as
Slide 10: 2-2) FY2025 Forecast – Business profit analysis
2-2) FY2025 Forecast – Business profit analysis 10/53 ■ Although business profit decrease due to unfavorable exchange rate, profit margin sustains due to internal efforts such as cost reduction activities, reduction of extra cost in North America and structural reforms. Revenue increased excluding t
Slide 11: 2-3) FY2025 Forecast – by Region
2-3) FY2025 Forecast – by Region 11/53 ■ Despite unfavorable exchange rate, we aim to increase profit by reduction of extra cost in North America. Revenue Business profit Unit : Billion of yen Unit : Billion of yen ratio to revenue(%) 10.6 8.9 7.6 6.9 739.0 750.0 3.6 3.1 1.2 1.7 -3.2 -5.1 29.5 485.3
Slide 12: 2-4) Activities to reduce extra costs in North America
2-4) Activities to reduce extra costs in North America 12/53 ■ FY24 extra costs in North America：9 billion yen ■ Task Force Team (TFT) has been organized to achieve “zero extra costs”. ■ causes of extra costs ■ Activities by Task Force Teams Labor shortage after COVID-19 → Getting better Three teams
Slide 13: 2-5) FY2025 Forecast – by Business unit
2-5) FY2025 Forecast – by Business unit 13/53 ■ Although revenue decrease due to unfavorable exchange rate in all business units, business profit increase in Drivelines, Industrial & Bearings and Machine tools. Revenue Business profit Unit : Billion of yen Unit : Billion of yen ratio to revenue(%) 1
Slide 14: Agenda
Agenda 14/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficien
Slide 15: 3 Progress of the 2nd period of Mid-term Plan
3 Progress of the 2 nd period of Mid-term Plan - Growth strategies and priority measures set forth in the 2 nd period of Mid-term Plan 15/53 ■ In the 2 nd period of mid-term plan, we set three growth strategies and key measures: "Strengthening solution creativity", "Strengthening Competitiveness", a
Slide 16: Agenda
Agenda 16/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficien
Slide 17: 3-1-1) Market conditions
3-1-1) Progress of the 2 nd period of mid-term plan - Actions to build a business strategy aimed at maximizing profitability 17/53 ■ Automobile production volume is on a leveling off trend, and Japanese automakers in particular are struggling. ■ Market conditions for industrial, particularly agricul
Slide 18: 3-1-2) Automotive business unit
3-1-2) Progress of the 2 nd period of mid-term plan - Actions to build a business strategy aimed at maximizing profitability 18/53 [ Automotive business unit ] ■ Next generation / new products launch on schedule and contribute profitability ■ Accelerate structural reforms and recourses-shift in resp
Slide 19: 3-1-3) Industrial & Bearings business unit
3-1-3) Progress of the 2 nd period of mid-term plan - Actions to build a business strategy aimed at maximizing profitability 19/53 [ Industrial ＆ Bearings business unit ] ■ Progress in structural reforms in Europe and North America are in line with plans ⇒ Further structural reforms to be promoted ■
Slide 20: 3-1-4) Machine Tools business unit
3-1-4) Progress of the 2 nd period of mid-term plan - Actions to build a business strategy aimed at maximizing profitability 20/53 [ Machine Tools business unit ] ■ Improve profitability by promoting rationalization through stronger intra-group collaboration. ■ Creating sales opportunities by propos
Slide 21: Agenda
Agenda 21/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficien
Slide 22: 3-2-1) Actions for Global Restructuring – Change of global environment
3-2-1) Progress of the 2 nd period of Mid-term Plan - Actions for Global Restructuring | Change of global environment 22/53 ■ In addition to Europe, Revenue in China and ASEAN are on a declining trend, and immediate improvement of our profitability structure is required. （Billion of yen） Revenue Bus
Slide 23: 3-2-2) Global Restructuring in Europe and America
3-2-2) Progress of the 2 nd period of mid-term plan - Actions for Global Restructuring l in Europe and America 23/53 ■ In addition to the sell-off of the pump business in FY2023, Needle Roller Bearing (NRB) Business was sold-off in FY2024, and restructuring is progressing as planned. ■ The direction
Slide 24: 3-2-3) Investment in the growing region of India
3-2-3) Progress of the 2 nd period of Mid-term Plan - Actions for Global Restructuring | Investment in the growing region of India 24/53 By FY2028 ■ We are investing actively in India, where we positioned as a growth region Investment amount ■ Planning to establish a new plant in Gujarat, ant start
Slide 25: 3-2-4) Situation in China
3-2-4) Progress of the 2 nd period of Mid-term Plan - Actions for Global Restructuring | Situation in China 25/53 ■ Revenues in China have significantly decreased, and it is necessary to have optimal structure Current Situation Direction of countermeasures Demand from major Improving capacity utiliz
Slide 26: Agenda
Agenda 26/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficien
Slide 27: 3-3-1) To improve capital efficiency – Cash allocation
3-3-1) Progress of the 2 nd period of Mid-term Plan - To improve capital efficiency l Cash allocation 27/53 ■ Market condition is more uncertain than before and worse than expected. Business profit will decrease due to lower revenue against the 2nd period of Mid-term Plan. ■ Expect cash-in/out is to
Slide 28: 3-3-2) Streamlining of invested capital
3-3-2) Progress of the 2 nd period of Mid-term Plan - To improve capital efficiency l streamlining of invested capital 28/53 ■ Aim for ROE 7~8%(the target in 2nd period of Mid-term Plan) by downsizing assets to optimal level. Reduction of low-profit assets Reduction of cross-shareholdings Reduction
Slide 29: 3-3-3) Return to shareholders
3-3-3) Progress of the 2 nd period of Mid-term Plan - To improve capital efficiency l Return to shareholders 29/53 ■ Expand shareholder returns in line with the 2 nd period of Mid-term Plan. ・FY2024 Actual ・・・ Dividend：50 yen per year (DOE 2.2%), Buyback：28.8 billion yen ・FY2025 Expected ・・・ Dividen
Slide 30: Agenda
Agenda 30/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficien
Slide 31: 3-4-1) Strengthening solution creativity
3-4-1) Progress of the 2 nd period of Mid-term Plan - Strengthening solution creativity and Improving the digital infrastructure 31/53 l Strengthening solution creativity ■ Solution Co-Creation Center was established in January 2025 and started from solutions of internal issues. ■ We built the Core
Slide 32: 3-4-2) Investment for the digital infrastructure
3-4-2) Progress of the 2 nd period of Mid-term Plan - Strengthening solution creativity and Improving the digital infrastructure 32/53 l Investment for the digital infrastructure ■ Aiming to realize data-driven management by breaking down the barriers among each business units and reforming and stan
Slide 33: Agenda
Agenda 33/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficien
Slide 34: 3-5) Establish the MVV (Mission Vision Value)
3-5) Progress of the 2 nd period of Mid-term Plan - Establish the MVV(Mission Vision Value) - 34/53 ■ We established 『MVV』 to show how JTEKT should be, and this unified concept is shared within our group. JTEKT CORPORATION
Slide 35: Joint Technology – Thank You
Joint Technology Thank You Yes for All, by All ! 35 Copyright (C)：JTEKT Copyright Corporation (C)：JTEKT Corporation
Slide 36: Agenda
Agenda 36/53 １．Results of fiscal year ended March 2025 P4 ２．Forecasts for Fiscal Year ending March 2026 P9 ３. Progress of the 2 nd period of Mid-term Plan P 15 1) Actions to build a business strategy aimed at maximizing profitability 2) Actions for Global Restructuring 3) To improve capital efficien
Slide 37: 4-1) Management indicators
4-1) Management indicators 37/53 Cash Flow statement Capital Efficiency Indicators Upper row Cash flows from operating activities ROE ROA ROIC Unit : Billion of yen (%) Lower row Cash flows from investing activities 5.9 FCF 154.4 5.4 5.1 5.5 5.3 91.7 83.1 80.2 78.2 3.8 67.0 3.5 39.2 41.7 4.3 26.1 2.
Slide 38: 4-2) Management indicators
4-2) Management indicators 38/53 Capital expenditures Depreciation & amortization R&D expenses Unit : Billion of yen Unit : Billion of yen ratio to revenue Unit : Billion of yen (%) 96.9 3.3 3.1 3.1 3.0 3.3 72.3 71.7 71.0 69.4 80.0 66.9 58.9 58.0 65.1 55.8 62.3 51.3 47.5 44.4 FY2021 FY2022 FY2023 FY
Slide 39: 4-3) Management indicators
4-3) Management indicators 39/53 Inventories Interest-bearing debt / Cash reserves Inventory turnover month Unit : Billion of yen Left bar Interest-bearing debt NET DE ratio Right bar Cash reserves Unit : Billion of yen 1.8 1.7 1.7 1.6 1.7 0.30 0.22 0.20 0.16 267.0 0.09 257.7 247.5 229.0 286.2 261.7
Slide 40: 4-4-1) Financial statements
4-4-1) Financial statements 40/53 Assets Liabilities and equity Unit : Billion of yen Unit : Billion of yen Liabilities Assets FY2023 FY2024 Change FY2023 FY2024 Change and equity Cash and cash Trade and other 167.0 119.0 -47.9 388.9 379.6 -9.2 equivalents payables Trade and other Interest-bearing 3
Slide 41: 4-4-2) Financial statements
4-4-2) Financial statements 41/53 Consolidated Profit and Loss statement Consolidated Cash Flow statement Unit : Billion of yen Unit : Billion of yen FY2023 FY2024 Change FY2023 FY2024 Change Cash flows from Revenue 1,891.5 1,884.3 -7.1 operationg activities 154.4 80.2 -74.2 Cash flows from Business
Slide 42: 4-5-1) Performance comparison – FY2024 Results (by Region)
4-5-1) Performance comparison – FY2024 Results (by Region) 42/53 Unit:Billion of yen Foreign Change excluding Region FY2023 FY2024 change FY2024 exchange foreign exchange Japan 735.7 739.0 +3.3 +0.5% - 739.0 +3.3 +0.5% North America 466.5 485.3 +18.8 +4.0% ＋19.3 466.0 -0.4 -0.1% Europe 239.5 215.1 -
Slide 43: 4-5-2) Performance comparison – FY2024 Results (by Business unit)
4-5-2) Performance comparison – FY2024 Results (by Region) Unit:Billion of yen 43/53 Foreign Change excluding Business unit FY2023 FY2024 change FY2024 exchange foreign exchange Steering 912.0 895.7 -16.2 -1.8% ＋17.7 878.0 -34.0 -3.7% Drivelines 432.3 437.3 ＋4.9 +1.1% ＋7.7 429.6 -2.7 -0.6% Automotiv
Slide 44: 4-6-1) Quarterly result trend – by Region
4-6-1) Quarterly result trend – by Region 44/53 Unit : Billion of yen 1Q 2Q 3Q 4Q FY2023 Revenue Business profit Revenue Business profit Revenue Business profit Revenue Business profit Japan 172.8 2.8 1.7% 195.7 14.2 7.3% 196.1 10.0 5.1% 171.0 4.3 2.5% North America 111.0 4.7 4.2% 113.8 -0.5 -0.5% 1
Slide 45: 4-6-2) Quarterly result trend – by Business unit
4-6-2) Quarterly result trend – by Business unit 45/53 Unit : Billion of yen 1Q 2Q 3Q 4Q FY2023 Revenue Business profit Revenue Business profit Revenue Business profit Revenue Business profit Steering Systems 215.1 5.4 2.5% 223.1 7.0 3.2% 236.7 9.8 4.2% 237.0 7.6 3.2% Drivelines 98.0 2.3 2.4% 113.5
Slide 46: 4-7-1) Automotive Revenue by Customer
4-7-1) Automotive (Steering/Drivelines) Revenue by Customer 46/53 Global Other Japanese and Global Unit : Billion of yen 15.2% revenue by Customer FY2023 FY2024 Nissan 114.9 -21.5 FY2023 93.4 (-18.7%) 1,344.4 Mazda 67.1 -10.2 Billion of yen 56.9 (-15.2%) Suzuki 51.9 +9.7 Other Japanese 61.6 (+18.7%)
Slide 47: 4-7-2) Industrial & Bearings Revenue by Industry
4-7-2) Industrial & Bearings Revenue by Industry 47/53 Aftermarket 15.7% Industrial & Bearings revenue Unit : Billion of yen 15.7% by 6 priority industries FY2023 FY2024 FY2023 3,580 358.0 60.2% Steel 12.6 ＋1.7 億円 Billion of yen 14.3 (+13.5%) 25.2% 16.2 -3.3 Agricultural Industry Automobiles 12.9 (-
Slide 48: 4-8-1) Business profit analysis – Steering Systems / Drivelines
4-8-1) Business profit analysis – Steering Systems / Drivelines 48/53 Unit : Billion of yen ＋8.9 29.9 ＋1.4 ＋0.8 ＋6.5 27.5 Steering -2.4 -8.1 Systems -9.5 Recovery from customers etc. FY2023 Foreign Sales Temporary Material cost, Sales Cost Expense FY2024 exchange volume (NA/EU) etc. price Reduction
Slide 49: 4-8-2) Business profit analysis – Industrial & Bearings / Machine tools
4-8-2) Business profit analysis – Industrial & Bearings / Machine tools 49/53 Unit : Billion of yen +2.6 12.6 ＋0.0 +2.1 8.6 Industrial & -5.3 -0.6 Bearings -2.0 -0.8 FY2023 Foreign Sales Temporary Material cost, Sales Cost Expense FY2024 exchange volume (NA/EU) etc. price Reduction etc. Unit : Billi
Slide 50: 4-9-1) Performance comparison – FY2025 Forecasts (by Region)
4-9-1) Performance comparison – FY2025 Forecasts (by Region) 50/53 Unit:Billion of yen Foreign Change excluding Region FY2024 FY2025 Change FY2025 exchange foreign exchange Japan 739.0 750.0 ＋10.9 +1.5% - 750.0 ＋10.9 +1.5% North America 485.3 452.0 -33.3 -6.9% -43.4 495.4 ＋10.0 +2.1% Europe 215.1 16
Slide 51: 4-9-2) Performance comparison – FY2025 Forecasts (by Business unit)
4-9-2) Performance comparison – FY2025 Forecasts (by Business unit) Unit:Billion of yen 51/53 Foreign Change excluding Business unit FY2024 FY2025 Change FY2025 exchange foreign exchange Steering 895.7 828.5 -67.2 -7.5% -56.0 884.5 -11.2 -1.3% Drivelines 437.3 426.0 -11.3 -2.6% -11.4 437.4 ＋0.0 +0.0
Slide 52: 4-10) Profit trends
4-10) Profit trends 52/53 Equity ratio (%) 43.6 45.0 46.3 48.4 47.6 47.8 42.3 42.0 42.4 42.7 40.1 Left bar Business profit Right bar *Profit Unit : Billion of yen 81.9 81.3 77.4 71.7 72.8 62.6 64.9 60.0 48.6 47.5 49.6 42.3 40.2 37.5 34.2 27.2 20.6 20.0 15.9 13.7 0.8 -3.7 FY2015 FY2016 FY2017 FY2018
Slide 53: Thank You
53/53 Thank You J-Nyan TEK-NYAN 【Note on forward-looking statements】 This report contains forward-looking statements pertaining to forecasts, plans and strategies. These forward-looking statements include risks, uncertainties and other factors, and actual results and business results may differ from