JTEKT Corporation · TSE:6473
JTEKT — FY2014 Earnings Presentation
85 slides from JTEKT's earnings presentation, May 13, 2015
Slide 1: Presentation for Fiscal Year Ending March 2015
1 Presentation for Fiscal Year Ending March 2015 May 13, 2015 JTEKT Corporation JTEKT Corporation
Slide 2: Results, Forecasts, Mid-Term Management Plan
2 1. Results for Fiscal 2014 2. Forecasts for Fiscal 2015 3. Mid-Term Management Plan JTEKT Corporation
Slide 3: 1-1) Consolidated Performance
3 1-1) Consolidated Performance JTEKT Corporation
Slide 4: 1-2) Quarter Trend
4 1-2） Quarter Trend Operating income rate (100 million yen) 6.5% 5.4% 5.1% 5.1% 5.1% 5.1% 6.7% 4.5% 3.3% 3.5% 2.7% 3,637 3,340 3,137 3,334 3,369 3,218 3,014 3,110 2,893 2,668 2,403 236 194 168 169 165 169 171 140 Sales 104 80 72 Operating income FY2007※1 FY2011※2 FY2012※3 1Q'13 2Q'13 3Q'13 4Q'13 1Q
Slide 5: 1-3) Operating Income Change Analysis
5 1-3） Operating Income Change Analysis Operating Income +159 (100 million yen) Negative impact △118 Positive impact +277 ＋22 ＋105 ＋81 741 △68 △21 582 △29 ＋69 Excludes Exchange Rate Impact Incom e R ise in W r it e d own of S a les G r owt h Im p r ov em ent F a llin S elling F ut ur e S olid P r ic
Slide 6: 1-3) Progress for Future Solid Foundation
1-3）Progress for Future Solid Foundation Towards Mid-term management plan , proactive and strategic progress for future solid foundation realized cost for 15billion yen . Executed in FY2014 Future object Asset control Appropriate asset value Examine dead stock & equipment for Cost and labor redu
Slide 7: 1-5) Financial Result by Product: Mechanical Components
7 1-5） Financial Result by Product 【Mechanical Components】 Net Sales Quarter Trend Operating Income Quarter Trend Operating Income STG BRG DL 6.2% Operating Income Rate 6.7% 3,153 2,801 2,949 2,868 2,921 3,032 4.8% 5.1% 5.1% 4.9% 4.7% 4.8% 2,720 2,725 389 209 2,386 352 358 358 358 365 148 2.5% 3.6%
Slide 8: 1-5) Financial Result by Product: Machine Tools & Other
8 1-5）Financial Result by Product 【Machine Tools & Other】 Net Sales Quarter Trend Operating Income Quarter Trend Operating Income Operating Income Rate 9.0% 8.5% 7.8% 7.8% 7.5% 9.1% 6.9% 5.6% 5.6% 507 483 384 391 412 2.7% 350 364 336 349 337 45 294 2.2% 32 31 30 27 27 23 21 25 6 10 FY2013 FY2014 FY2
Slide 9: 1-6) Financial Result by Region: Japan
9 1-6） Financial Result by Region 【Japan】 Quarter Trend (100million yen) Operating Income Rate 6.0% 6.0% 6.4% 6.3% 6.3% 5.4% 5.3% 5.6% 7.7% 3.3% 3.3% 1,586 1,492 1,441 1,479 1,354 1,396 1,377 1,344 1,324 1,305 1,293 121 95 90 Net Sales 84 82 83 82 69 71 42 44 Operating income FY2007 FY2011 FY2012 FY
Slide 10: 1-6) Financial Result by Region: Europe
10 1-6） Financial Result by Region 【Europe】 (100million yen) Quarter Trend 2.4% 3.4% 1.5% 1.4% 1.8% 1.1% 0.2% 2.1% 3.9% 5.3% 579 2.9% 552 532 530 556 494 484 494 452 343 348 19 12 8 7 8 12 5 1 10 13 24 FY2007 FY2011 FY2012 FY2013 1Q 2Q 3Q 4Q FY2014 1Q 2Q 3Q 4Q JTEKT Corporation
Slide 11: 1-6) Financial Result by Region: North America
11 1-6） Financial Result by Region 【North America】 (100million yen) Quarter Trend 3.9% 3.2% 5.3% 5.7% 2.2% 0.8% 1.0% 1.3% 1.1% 3.2% 3.0% 780 810 46 709 731 688 602 612 36 572 426 459 27 357 23 19 16 13 7 6 2 4 FY2007 FY2011 FY2012 FY2013 2Q 3Q 4Q FY2014 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 12: 1-6) Financial Result by Region: Asia/Oceania
12 1-6） Financial Result by Region 【Asia・Oceania】 Quarter Trend (100million yen) 11.8% 12.2% 10.6% 10.7% 16.3% 9.4% 8.6% 7.7% 7.7% 9.8% 443 2.0% 457 381 378 367 363 371 375 329 242 214 52 46 48 34 32 39 31 27 28 23 7 FY2007 FY2011 FY2012 FY2013 2Q 3Q 4Q FY2014 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 13: 1-6) Financial Result by Region: China
13 1-6） Financial Result by Region 【China】 (100million yen) Quarter Trend 13.7% 11.2% 11.0% 12.1% 12.1% 11.7% 15.0% 9.3% 10.0% 10.0% 13.3% 299 272 235 230 208 186 194 185 132 112 35 37 25 28 21 22 20 46 18 14 12 7 FY2007 FY2011 FY2012 FY2013 2Q 3Q 4Q FY2014 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 14: 1-6) Financial Result by Region: South America/Other
14 1-6） Financial Result by Region 【South America /Other】 Quarter Trend (100million yen) 7.0% 2.2% 3.1% 4.6% 4.2% 3.2% 4.1% 0.5% 2.9% 13.6% 16.6% 64 60 55 59 59 51 54 44 48 39 43 5 3 2 2 2 0 1 1 1 0 9 FY2007 FY2011 FY2012 FY2013 2Q 3Q 4Q FY2014 2Q 3Q 4Q 1Q 1Q JTEKT Corporation
Slide 15: 1-7) Financial Data
15 1-7） Financial Data Inventorｙ Interest-Bearing Deｂt (100million yen) Interest-Bearing Debt D/E Ratio Inventory Inventory turnover period 1.8 1.6 2,651 2,457 1.5 2,266 0.73 0.62 1,639 1,692 1,772 0.48 FY2012 FY2013 FY2014 FY2012 FY2013 FY2014 Capital Expenditure Depreciation First-Half Second-Half
Slide 16: Results, Forecasts, Mid-Term Management Plan
16 1. Results for Fiscal 2014 2. Forecasts for Fiscal 2015 3. Mid-Term Management Plan JTEKT Corporation
Slide 17: 2-1) External Environment
17 2-1） External Environment Sustainable in developed countries ・US Market remains expanding at a moderate pace ・Modest recovery remaining in Europe Market Sluggishness in emerging countries ･China Market remains in growth but restrained ･Emerging countries except China remains in weak growth in s
Slide 18: 2-2) Forecasts for Fiscal 2015
18 2-2） Forecasts for Fiscal 2015 JTEKT Corporation
Slide 19: 2-3) Operating Income Change Analysis
19 2-3） Operating Income Change Analysis Operating Income +39 （100millionyen） Negative Impact △70 Positive Impact ＋109 ＋20 △70 ＋10 ＋79 741 780 Excludes Exchange Rate Impact FY2014 FY2015 Incom e R ise in F a ll in S elling S a les G r owt h Im p r ov em ent P r ice L ev el Excha nge (Forecast) F or
Slide 20: 2-4) Net Sales by Product
20 2-4） Net Sales by Product （100million yen） Bearings JTEKT Corporation
Slide 21: 2-5) Net Sales by Region
21 2-5） Net Sales by Region （100 million yen） JTEKT Corporation
Slide 22: Results, Forecasts, Mid-Term Management Plan
22 1. Results for Fiscal 2014 2. Forecasts for Fiscal 2015 3. Mid-Term Management Plan JTEKT Corporation
Slide 23: 3) Progress of Mid-term Management Plan
23 3) Progress of Mid-term Management Plan Mid-term Management Plan (2015-2019) JTEKT CORPORATION
Slide 24: Contents
24 3) Progress of Mid-term Management Plan CONTENTS 1.Summary of the First Year 2.Outline of Mid-term Management Plan (Business Operations Strategies) 1) Automotive Systems Business Operations Strategies 2) Bearing Business Operations Strategies 3) Machine Tools & Mechatronics Business Operations St
Slide 25: 1. Summary of the First Year
25 3-1) Summary of the First Year 1. Summary of the First year Management Environment Management Index (Consolidated) JTEKT CORPORATION
Slide 26: 3-1) Management Environment
26 3-1) Management Environment [FY 2014] With growth in earnings and the effect of depreciation of the yen, we have accelerated the strengthening of the business foundation, solidified our footing, and have at the same time worked on “bullet loading". [Favorable conditions] ① Enhancement of cooperat
Slide 27: 3-1) Management Index (Consolidated)
27 3-1) Management Index (Consolidated) Inventory Loan balance Inventory Turnover months Loan balance Debt equity ratio 1.8 0.79 0.73 1.6 1.6 0.62 1.5 0.48 0.30 1.3 2,652 1,772 2,551 2,457 1,692 2,266 1,639 1,450 1,500 or less 1,545 12/3 term 13/3 term 14/3 term 15/3 term 19/3 term 12/3 term 13/3 te
Slide 28: 3-2) Outline of Mid-term Management Plan
28 3-2) Outline of Mid-term Management Plan 2. Outline of Mid-term Management Plan Achievement of JTEKT GROUP VISION Automotive Bearing Machine Tools & Systems business Mechatronics business operations business operations strategies operations strategies strategies Functional Units Business operatio
Slide 29: Automotive Systems Business Operations Strategies
29 3-2-1) Automotive Systems Business Operations Strategies Automotive Systems Business Operations Strategies PROPRIETARY & CONFIDENTIAL JTEKT CORPORATION
Slide 30: Ideal for Automotive Systems Business Operations
30 3-2-1) Ideal for Automotive Systems Business Operations Be the all-time leading supplier in the market with the spirit of “World No.1”&“Only One”, through delivering value to customers Mid-term target Maintain the top global share in automotive Steering systems steering systems Drivelines Be a le
Slide 31: Actions (Steering Systems) ①
31 3-2-1) Actions (Steering Systems) ① Ideal Be the all-time leading supplier in the market with the spirit of “World No.1”&“Only One”, through delivering value to customers Mid-term target Maintain the top global share in automotive steering Steering systems systems Priority activities Strengthen •
Slide 32: Actions (Steering Systems) ②
32 3-2-1) Actions (Steering Systems ) ② *According to JTEKT Results of activities in FY 2014 (Activities to maintain top share) research based on market data Forecast of steering market share in FY 2018 Secure 23% of share 2018 target 25% through new orders in FY 2014 Results of FY 2014 New orders a
Slide 33: Actions (Steering Systems) ③
33 3-2-1) Actions (Steering Systems) ③ Electric power steering systems lineup Upstream assist type Downstream assist type PROPRIETARY & CONFIDENTIAL JTEKT CORPORATION
Slide 34: Actions (Steering Systems) ④
34 3-2-1) Actions (Steering Systems) ④ *According to JTEKT Results of activities in FY 2014 (Expansion of downstream assist business) research based on market data DP-EPS (Dual pinion type) RP-EPS (Rack parallel type) Market share Market share Competitors Competitors 2014 2018 2014 2018 Downstream
Slide 35: Actions (Steering Systems) ⑤
35 3-2-1) Actions (Steering Systems) ⑤ Results of activities in FY 2014 (Strengthened product potential) Completion of development of next-generation column that can be proposed to customers in EU and the U.S. Acquired orders from Japanese customers. Mass production in Japan/North America schedu
Slide 36: Reflection of Steering in FY 2014 and Future Response
36 3-2-1) Reflection of Steering in FY 2014 and Future Response Actions to be taken in and after FY 2015 Achieve- PM (Project Management) system has ments been established Selling method Sales (Strengthen global management) Increasing cost competition (Price differences Further enhancement of
Slide 37: Expansion of Steering Business
37 3-2-1) Expansion of Steering Business <For continuous growth of business operations> Production Units/Year Building an optimum production system on a global basis volume Downstream assist Great increase EPS Response with minimum investment C-EPS Increase Maintain productivity through line reorgan
Slide 38: Actions (Drivelines) ①
38 3-2-1) Actions (Drivelines) ① Ideal Be the all-time leading supplier in the market with the spirit of “World No.1”&“Only One”, through delivering value to customers Mid-term Be a leading company in torque control target Drivelines devices Priority activities • Size reduction/Cost reduction/High p
Slide 39: Actions (Drivelines) ②
39 3-2-1) Actions (Drivelines) ② Results of activities in FY 2014 (Strengthened product potential) Developed next-generation torque control devices as main products Strengthened efforts towards customers in Japan/U.S. for proposal-type products which respond to environmental requirements (small-
Slide 40: Actions (Drivelines) ③
40 3-2-1) Actions (Drivelines) ③ Results of activities in FY 2014 Scope of sales per (Customer base expansion/Market development) region in 2014 [EU] Launched team for development of market in Japan/EU • Increased number of engineers in EU • Participated in parts exhibition/Correspondence for winter
Slide 41: Reflection of Drivelines in FY 2014 and Actions
41 3-2-1) Reflection of Drivelines in FY 2014 and Actions to Be Taken Organized driveline market survey framework Achieve- Actions to be taken in and after FY 2015 ments in EU Verification of marketability of each product Selling method Sales has been finished Reform selling method • Enhance a
Slide 42: Automotive Systems Business Operations Mid-term Business Plan
42 3-2-1) Automotive Systems Business Operations Mid-term Business Plan <For sustainable business growth> Projects aimed at receiving additional orders Sales (Target PJ) 100 mil. yen/Year Driveline business Sales in 2014 Sales in 2018 Steering Comparison with 2014 + Established 10% of outlook busine
Slide 43: Actions for FY 2015-19
43 Actions for FY 2015-19 (towards enhancement of business constitution) 1. Further enhancement of global project activity framework PM (Expansion of project management office) Develop activities for driveline projects 2. Further enhancement of competitiveness Acceleration of core components s
Slide 44: Bearing Business Operations Strategies
44 3-2-2) Bearing Business Operations Strategies Bearing Business Operations Strategies JTEKT CORPORATION
Slide 45: FY 2014 Mid-term Plan (2014-2018)
45 3-2-2) FY 2014 Mid-term Plan (2014-2018) Ideal Follow the growth of the global market and strengthen operational capability Tackling to priority tasks Product/Industry-related strategies × (Structural reform, production, sales, engineering) 製品別方針 Strategy for Products 製品別方針 Strategy for business
Slide 46: FY 2014 Mid-term Plan: Priority Action Items
46 3-2-2) FY 2014 Mid-term Plan (2014-2018) Priority action items in FY 2014 • Reorganize Kokubu plant Structural Reform • Reorganize plants outside Japan Establish productivity and production • Strengthen production line for multi-product/small-lot manufacturing engineering capability • Reorganize
Slide 47: Achievements and Challenges ① Structural Reform
47 3-2-2) Achievements and Challenges ① Structural Reform Achieve- ments Structural • Outline of reorganization of plants in Japan and outside Japan has been Reform determined • Clarification of roles of each region enges Chall- • Enhancement of business constitution for stable business management i
Slide 48: Structural Reform: Reorganization of Production in Japan
48 3-2-2) Achievements and Challenges ① Structural Reform ◆ Reorganization of production resources in Japan Automotive HUB units: Reorganization of production plant Kameyama plant’s new building Kameyama Kagawa Kokubu Tokushima Relocate forging and turning process in Shikoku area (Kagawa and Tokushi
Slide 49: Reorganization Map of Bearing Plants in Europe
49 3-2-2) Achievements and Challenges ① Structural Reform ◆ Reorganization map of bearing plants in Europe Performance improvement (Index) KBE Index ■ +116 KBDE TRB line Maromme plant ■ transfer KBVM KBCZ ■■ ■ Moult plant Plant reorg. ■ -100 Plant KRA closure KBES Vierzon plant ■ ■ FY2013 FY2014 Pla
Slide 50: Reorganization Map of Bearing Plants in China
50 3-2-2) Achievements and Challenges ① Structural Reform ◆ Reorganization map of bearing plants in China Cost improvement (Cost index) Dalian KDC KWA Index ■ ■ 100 96 WKB ■ ■ KAW Wuxi ■ KNBW KLF FY2013 FY2014 ■ Plant (Region) Action item KDC (Dalian) • Miniature and small dia. SBB plant WKB (Wuxi)
Slide 51: Achievements and Challenges ② Production
51 3-2-2) Achievements and Challenges ② Production Achieve- Production • Cost reduction activity has been settled through promotion of Oobeya activities ments • Model line specification for multi-product/small-lot manufacturing • Reduction of investment per unit (Design completed) enges Chall- • Est
Slide 52: Reduction of Investment per Unit
52 3-2-2) Achievements and Challenges ② Production ◆ Reduction of investigation per unit [Idea for a reduction of investigation per unit at mass production line] （％） SV Reduction Transfer/ ancillary Investigation per unit ① Reduction Die/Jigs of investment ＝ Machines ② Improvement in production capa
Slide 53: Achievements and Challenges ③ Sales
53 3-2-2) Achievements and Challenges ③ Sales Achieve- ments • Reorganization of sales network in Japan (Merger with Koyo sales) Sales • Setup action plan of product lineup for aftermarket enges Chall- • Activity to increase brand power in the global market place • Estimate market trends and setup r
Slide 54: Achievements and Challenges ④ Engineering
54 3-2-2) Achievements and Challenges ④ Engineering Achieve- • Proceeded with development through selection of targets Engineering ments for high value-added products • Application-specific action plan has been clarified • Start of development of next-generation value-added products, enges Chall- en
Slide 55: Strengthening Product Potential (1)
55 3-2-2) Examples of strengthening product potential (1) Example of developed products matched to customer needs (Industrial machine bearings) Longer life/higher speed JHS-series spherical roller bearings • Spherical roller bearing with longer life and higher speed, able to respond to harsher condi
Slide 56: Strengthening Product Potential (2)
56 3-2-2) Examples of strengthening product potential (2) Example of developed products matched to customer needs (Industrial machine bearings) Traction drive unit • Reducer for high precision feeding application created from bearing core technology which speed gears cannot attain which speed gears
Slide 57: Strengthening Product Potential (3)
57 3-2-2) Examples of strengthening product potential (3) Example of developed products matched to customer needs (Automotive bearings) Next-generation super-low friction torque tapered roller bearing (LFT-IV) • Development of low friction torque bearing beyond LFT-III Optimized shape and roughness
Slide 58: Strengthening Product Potential (4)
58 3-2-2) Examples of strengthening product potential (4) Example of developed products matched to customer needs (Automotive bearings) Bearings that contribute to reliability enhancement of fuel cell vehicles • Bearings adopted in production type fuel cell vehicle “MIRAI” HUB unit Ball bearing for
Slide 59: FY 2015 Mid-term Plan (2015-2019)
59 3-2-2) FY 2015 Mid-term Plan (2015-2019) Long term vision of bearing operations Continue creating value, impress customers and be praised for business operations — Raise the "Koyo" brand to the top brand in the world — • Be a highly profitable business unit by transitioning Entire from quantity t
Slide 60: Chronological Table of Business Strategy
60 3-2-2) FY 2015 Mid-term Plan (2015-2019) 2014 2015 2016 2017 2018 2019 Manufacturing Structural reform Chronological table of business strategy Establish productivity and production engineering capability Reorganize plants in Japan Establish productivity and production engineering capability Upgr
Slide 61: Machine Tools & Mechatronics Business Operations Strategies
3-2-3） Machine Tools & Mechatronics 61 Business Operations Strategies Machine Tools & Mechatronics Business Operations Strategies JTEKT CORPORATION
Slide 62: FY 2014 Mid-term Management Plan
62 3-2-3） FY 2014 Mid-term Management Plan Ideal True total production system supplier that is trusted by customers Policies for each product 製品別方針 Grinder Maintain the No.1 global share in extreme accuracy/productivity Develop within fields of high value-added through high accuracy and Cutting mach
Slide 63: Activities in 2014
63 3-2-3） Activities in 2014 (Machine Tools & Mechatronics Operations Headquarters) Priority actions Promote proposal-type sales that follow regional characteristics and customer aspects Improve amount of orders received and order determination ratio by Strengthen restructuring the sales net and
Slide 64: Review of FY 2014: Strengthen Sales Capability
3-2-3) Review of FY 2014 64 (Machine tools and Mechatronics Operations Headquarters) Evaluation of priority actions (1) Achieve- Increased sales of control systems Strengthen sales ments Expansion network of European dealers capability Challenges Sales activities with defined goal (breakaway/e
Slide 65: Review of FY 2014: Strengthen Product Potential
3-2-3) Review of FY 2014 65 (Machine tools and Mechatronics Operations Headquarters) Evaluation of priority actions (2) Achieve- Strengthen product Model change to new type machine/Sales expansion ments Entry into gear machining market potential Challenges Enhance system proposal ability with
Slide 66: Review of FY 2014: Monozukuri Revolution
66 3-2-3) Review of FY 2014 (Machine tools and Mechatronics Operations Headquarters) Evaluation of priority actions (3) Achieve- Implementation of Kariya ReBORN ments Monozukuri Reduced cost of standard parts through Oobeya activities revolution Challenges Achieve definite results through Kari
Slide 67: Review of FY 2014: Reflection of First Fiscal Year
67 3-2-3) Review of FY 2014 (Machine tools and Mechatronics Operations Headquarters) Reflection of first fiscal year • The first fiscal year has been devoted to maintaining work amount and improving the balance, while activities for constitution improvement and mid-term objectives were insufficient.
Slide 68: FY 2015 Mid-term Management Plan (System Integrator)
68 3-2-3） FY 2015 Mid-term Management Plan（system integrator ） True total production system integrator that is trusted by customers Ideal Provide values at all phases of monozukuri Solidify the basis for “connectable” business from the business focusing Business on new machines (up to 2016), and enh
Slide 69: Business Operations Strategies ①
69 3-2-3） FY 2015 Mid-term Management Plan (Business Operations Strategies ①) Enclose customers within establishment/enlargement of value chain Customer/Equipment DB Group companies Solution Engineering/System Improvement/Modification Proposal Overhaul Training Machine Sales Education Customer Produ
Slide 70: Business Operations Strategies ②
70 3-2-3） FY 2015 Mid-term Management Plan (Business Operations Strategies ②) Utilize connection from technology shared among group companies to meet requirements of the workpiece (process proposal) JTEKT Grinders Customer/Equipment DB Grinders, cutting machines (centerless, surface) Machining cente
Slide 71: Business Operations Strategies ③
3-2-3） FY 2015 Mid-term Management Plan 71 (Business Operations Strategies ③) Story-backed technology development and product development (connection from development to market supply) Improvement/Modification Minor change Model change Maintain and improve competitiveness through strategic technolog
Slide 72: FY 2015 Mid-term Management Plan and Activities
72 3-2-3） FY 2015 Mid-term Management Plan and Activities [Industry with intense demand fluctuation] Mid-term management plan（2015-2019） ① Enhance constitution that can FY2015 16-17 18-19 endure fluctuation Sales, work amount → Policy Mid-term target Mid-term target Cut out first year of mid-term ma
Slide 73: FY 2015 Priority Actions
73 3-2-3） FY 2015 Priority Actions FY 2015 Machine Tools & Mechatronics Operations Headquarters Key Policy 1. Strengthen constitution 2. Clarify target market 3. Produce results from Kariya ReBORN 4. Enhance mechatronics/controls business 5. Conversion to customer support value business JTEKT CORPOR
Slide 74: Actions of Each Functional Unit
74 3-2-4/5/6) Actions (Each Functional Unit) Actions of Each Functional Unit Global HR Management Strengthening Financial Basis Operational Reform of Indirect Departments JTEKT CORPORATION
Slide 75: Global HR Management ①
75 3-2-4) Global HR Management ① ① Appointment/development/optimized assignment of Ideal global management HR FY 2014 From FY 2015 Introduction of succession plan to Introduction of Practice of global succession JTEKT department managers (JJP succession plan and transfer of HR committee) Creation of
Slide 76: Global HR Management ②
76 3-2-4) Global HR Management ② ② Improvement of ability/organizational capabilities Ideal of individual employees FY 2014 From FY 2015 Abilities of individual employee Problem solving seminar for Seminar for all employees, Problem solving executive officers and all expansion to group ability produ
Slide 77: Strengthening Financial Basis ①
77 3-2-5) Strengthening Financial Basis ① Actions to improve financial standing The following actions are being taken throughout JTEKT in order to cut the loan balance and secure strategic funds 1. Activities to cut waste in fund and assets ① Leveling of global cash ② Organization of unnecessary ret
Slide 78: Strengthening Financial Basis ②
78 3-2-5) Strengthening Financial Basis ② Examples of actions to improve financial standing 1. Activities to cut waste in cash and assets ① Leveling of global cash ② Organize unnecessary maldistribution retained assets and Reduction of loan balance unprofitable business through the levelling of cash
Slide 79: Strengthening Financial Basis ③
79 3-2-5) Strengthening Financial Basis ③ Examples of actions to improve financial standing 2. Activities to maintain and improve appropriate balance Introduction of B/S mgmt. for Outline of B/S mgmt. for each business each business • Clarify responsibility of the mgmt. P/L mgmt. for each business o
Slide 80: Strengthening Financial Basis ④
80 3-2-5) Strengthening Financial Basis ④ Examples of actions to improve financial standing 2. Activities to maintain and improve appropriate balance Idea on B/S for each business (Reference) Business Business ① Management of the remaining balance for assets liabilities business - Visualize retained
Slide 81: Operational Reform of Indirect Departments ①
81 3-2-6) Operational Reform of Indirect Departments ① Background to undergo operational reforms Policy Due to the acceleration of globalization, the following items must be urgently undertaken: Continuously spiral up the • Diversify human resources standardization of daily work • Create a global ma
Slide 82: Operational Reform of Indirect Departments ②
82 3-2-6) Operational Reform of Indirect Departments ② Actions in previous term Specialized production development to the first engineering department in charge, and reduced rework of the engineering departments to remit the affect to downstream processes. (29% of the operational reform activities f
Slide 83: Numerical Value Perspective
83 3-3) Numerical Value Perspective Numerical Value Perspective JTEKT CORPORATION
Slide 84: Numerical Value Perspective
84 3-3 ) Numerical Value Perspective FY 2014 FY 2015 FY 2019 result plan target Sale profit margin 5.5% 5.7% 8.0% Capital investment 68.4 billion yen 75.0 billion yen 75.0 billion yen Depreciation expenses 57.0 billion yen 60.0 billion yen 65.0 billion yen Ratio of research and development 3.0% 3.1%
Slide 85: Thank You
85 Thank You JTEKT CORPORATION