JTEKT Corporation · TSE:6473
JTEKT — FY2017 Earnings Presentation
85 slides from JTEKT's earnings presentation, May 16, 2018
Slide 1: IR Presentation for Fiscal Year 2017, Ending March 2018
1 IR Presentation for Fiscal Year 2017, Ending March 2018 May 16, 2018 JTEKT Corporation JTEKT CORPORATION
Slide 2: Agenda: Results, Forecasts, Mid-term Plan Progress
2 1. Results for Fiscal Year 2017, Ending March 2018 2. Forecasts for Fiscal Year 2018, Ending March 2019 3. Progress of Mid-term Business Plan JTEKT CORPORATION
Slide 3: 1-1) Consolidated Performance
3 1-1) Consolidated Performance Sales and profits increased due to weaker yen, increased quantity, and the effect of newly consolidated subsidiaries. (billions of yen) Increase/ Increase/ FY2016 FY2017 Decrease Decrease (%) Sales 1318.3 1441.1 +122.8 +9.3% Operating profit (5.9%) 77.4 (5.6%) 81.3 +3
Slide 4: 1-2) Operating Profit Analysis
4 1-2) Operating Profit Analysis Profit increased due to “sales increase” and “cost improvement” which covered impact by “selling price level down” and “cost increase” Operating profit: 3.9 billion yen increase Factors of profit decrease Factors of profit increase (25.1 billion yen) (29.0 billion ye
Slide 5: 1-3) Results by Business Units (Mechanical Components)
1-3) Results by Business Units 5 (Mechanical Components) Despite FX-rate advantage and sales increase, profit ended at the same level as the previous year due to launch of downstream-assist-type EPS, sales price down and cost increase. (billions of yen) Mechanical Increase/ Increase/ FY2016 FY2017 c
Slide 6: 1-4) Results by Business Units (Machine Tools & Others)
1-4) Results by Business Units 6 (Machine Tools & Others) Profits increased due to the effect of sales increase mainly in Japan and North America. (billions of yen) Machine tools Increase/ Increase/ FY2016 FY2017 & others Decrease Decrease (%) Sales 142.2 161.5 +19.3 +13.6% Machine tools 139.9 160.0
Slide 7: 1-5) Financial Results by Company Location [1]
7 1-5) Financial Results by Company Location [1] Sales Operating Profit (%) (billions of yen) Japan Operating Profit Increase/ FY2016 FY2017 (billions of yen) Decrease 6.0% 5.9% 5.2% 3.8% 4.9% Sales 549.3 582.4 33.0 582.4 OP Profit 20.7 28.2 7.4 556.0 559.0 559.8 549.3 OP Profit (%) 3.8% 4.9% - 33.3
Slide 8: 1-6) Financial Results by Company Location [2]
8 1-6) Financial Results by Company Location [2] Sales Operating Profit (%) (billions of yen) North America Operating Profit Increase/ FY2016 FY2017 (billions of yen) Decrease 3.8% 4.7% 4.7% Sales 289.6 298.2 8.6 2.8% 3.0% 328.6 OP Profit 13.7 8.9 (4.7) 303.1 289.6 298.2 OP Profit (%) 4.7% 3.0% - 24
Slide 9: 1-7) Financial Results by Company Location [3]
9 1-7) Financial Results by Company Location [3] Sales Operating Profit (%) (billions of yen) China Operating Profit Increase/ FY2016 FY2017 Decrease (billions of yen) 14.4% 15.9% 15.8% Sales 127.6 146.9 19.3 11.0% 12.0% 146.9 OP Profit 20.2 23.2 3.0 130.2 127.6 OP Profit (%) 15.9% 15.8% - 101.1 23.
Slide 10: Agenda: Forecasts for Fiscal Year 2018
10 1. Results for Fiscal Year 2017, Ending March 2018 2. Forecasts for Fiscal Year 2018, Ending March 2019 3. Progress of Mid-term Business Plan JTEKT CORPORATION
Slide 11: 2-1) Forecasts for Business Environment
11 2-1) Forecasts for Business Environment World economy Maintains gradual economic growth as a result of the easy- money policy and tax reduction policy of the U.S. Unpredictable due to the stringent import tariffs and protectionist policy of the U.S. Japan Gradual recovery due to an increase i
Slide 12: 2-2) Forecasts for Fiscal Year 2018
12 2-2) Forecasts for Fiscal Year 2018 Despite negative impact due to foreign exchange rate, FY2018 forecasts an increase in sales and profits by the effect of M&A and increase in quantity. (billions of yen) FY2018 (Forecast) Increase/ FY2017 Increase/ Decrease Full year (Actual) Decrease 1H 2H Full
Slide 13: 2-3) Operating Profit Analysis
13 2-3) Operating Profit Analysis “Selling prices level down” and “cost increase” will be covered by the effect of “the sales increase” and “cost improvement”. Also with M&A effect, FY2018 will expect to update the highest profit. Operating profit: 5.6 billion yen increase Factors of profit decrease
Slide 14: Agenda: Progress of Mid-term Business Plan
14 1. Results for Fiscal Year 2017, Ending March 2018 2. Forecasts for Fiscal Year 2018, Ending March 2019 3. Progress of Mid-term Business Plan JTEKT CORPORATION
Slide 15: Contents: Progress of Mid-Term Business Plan
15 3) Progress of Mid-Term Business Plan CONTENTS 1. Strategies of Business Units 1) Summary 2) Steering Systems 3) Driveline 4) Bearings 5) Machine Tools & Mechatronics 6) Actions for New Business 2. Actions for Corporate Value Enhancement JTEKT CORPORATION
Slide 16: 1) Summary
16 1) Summary JTEKT CORPORATION
Slide 17: 3-1-1) Review of Initial Target (vs. in FY2014)
17 3-1-1) Review of Initial Target (vs. in FY2014) Difference from the initial target in FY2014 Target of FY2018 Forecast in FY2018 Increase/ (Set in FY2014) (Present) Decrease Sales 1340.0 billion yen 1500.0 billion yen +160.0 billion yen OP Profit 100.0 billion yen 87.0 billion yen (13.0 billion y
Slide 18: 3-1-1) Investment to Strengthen Business Foundation
3-1-1) Investment to Strengthen Business Foundation 18 (Non-financial value) Accelerate human resource development, investment for safety & accident prevention, and further operational reform & utilization of IT, that contribute to the establishment of the company’s long-term business foundation (mi
Slide 19: 3-1-1) Review – Profit & Loss Trend (Management rate)
19 3-1-1) Review – Profit & Loss Trend (Management rate) Business structure had improved until FY2016 except for the foreign exchange rate, but FY2017 profit decreased because of ; (1) New launch of Rack-assist EPS in North America, (2) Investment for the future actions such as ADAS/IoE FY2018 wil
Slide 20: 3-1-1) Review - Management Index (Consolidated)
20 3-1-1) Review - Management Index (Consolidated) New consolidation subsidiaries Inventory and WIP increase as a result of Interest-bearing debt (net) * The net of interest-bearing debt and cash order increase for machine tools Inventory Inventory turnover month Interest-bearing debt (net) Not incl
Slide 21: 3-1-1) Secure Substantial Cash-balance
3-1-1) Secure Substantial Cash-balance for 21 “Offensive and Defensive” measures for the future The B/S slim-up activities promoted the financial structure improvement => Financial Strategy shift: Secure Substantial cash-balance for sustainable growth - Cash Increase : Cash on hand Interest-bearing
Slide 22: 3-1-1) Re-establishment of Fund Portfolio
22 3-1-1) Re-establishment of Fund Portfolio Re-establish and strengthen the structure to centrally manage the JTEKT group’s cash-balance at JTEKT HQs As the “safety funds” for preparation for financial crisis and “strategic funds” for business operation, • HQs centrally manage the cash-balance and
Slide 23: 2) Steering Systems
23 2) Steering Systems (Abbreviation list) ADAS: Advanced Driver Assistance System RP-EPS: Rack Parallel-EPS DP-EPS: Dual Pinion-EPS PMI: Post Merger Integration JAMO: JTEKT Automotive Morocco SAS FAMO: Fuji Automotive Morocco SAS JIN: JTEKT India LTD. JSAI: JTEKT SONA Automotive India LTD. SKSS: So
Slide 24: 3-1-2) Steering Business Growth Strategy
24 3-1-2) Steering Business Growth Strategy Continue to maintain the top share for steering, and to be the No. 1 & Only One as the top runner for advanced steering technology such as ADAS Intense market competition Evolution of technology Change in market Environmental changes • Intense cost competi
Slide 25: 3-1-2) Strengthen Column Business
25 3-1-2) Strengthen Column Business (Strengthen group cooperation) January 2018 Reorganization of Fuji Kiko as a fully-owned subsidiary, start of PMI activity to strengthen business 1. Ideal 3. Promote PMI activity Steering share: Keep the 25% of world top share Strengthen system foundation to crea
Slide 26: Morocco plants FAMO and JAMO expansion
building Construct Production preparation ▼ 1. SOP schedule 2017 ▼ 2. Rendering of building 2018 ▽ Start of volume production (To be 2019 started in Sep., 2020) Jan., 2019) 2020 ▽ (To be completed in Construct building Space approx. 21,000 m2 expanded ｝ ０ ２ Ｅ ｛ ｝ ５ ３ Ｅ ｛ JAMO Office Meeting room2 KA
Slide 27: 3-1-2) Strengthen Business in India
27 3-1-2) Strengthen Business in India SKSS became JTEKT’s consolidated subsidiary in June 2017 to promote strengthening STG business in India 1. Changed company name “SKSS” New name from April 2018 JSAI Steering share in 15% India FY2016 Both in name and reality, start operation as “JTEKT” and Resu
Slide 28: 3-1-2) Strengthen Rack-Assist EPS
28 3-1-2) Strengthen Rack-Assist EPS Adoption of EPS is increasing along with automated driving of large automobiles such as pickup trucks 1. EPS in large automobiles 3. Response to large automobile EPS Vehicle ⾞両セグメント segment Progress in (1) Develop high output DP-EPS HPS/H-EPS ⼤型⾞の EPS for large E
Slide 29: 3-1-2) Strengthen Electronic Engineering Development Capability
29 3-1-2) Strengthen Electronic Engineering Development Capability Opened and started operation of JTEKT IT Center Akita Corporation on November 2017 Promoting recruit with the target of 40 people by the end of FY18 1. Opening ceremony <Nov. 24, 2017> 2. Aim of establishment To solve the shortage
Slide 30: 3-1-2) Forecast for Mid-term Business Plan for Steering
30 3-1-2) Forecast for Mid-term Business Plan for Steering FY2018 Sales and Profit Forecast ¥95/US$, ¥110/€, ¥16/yuan 2018 2022 Sales: Expected to achieve the initial target as a result of the Sales: Steady increase expected FKK/SKSS’s increase despite the stagnation of global Profit: Expected to ac
Slide 31: 3) Driveline
31 3) Driveline (Abbreviation list) AWD: All Wheel Drive CVJ: Constant Velocity Joints ITCC: Intelligent Torque Controlled Coupling LSD: Limited Slip Differential TCD: Torque Control Device LIC: Lithium-Ion Capacitor FC: Fuel Cell JTEKT CORPORATION
Slide 32: 3-1-3) Driveline Business Outline
32 3-1-3) Driveline Business Outline Contribution to “drive” of automobiles through driveline products (System/Unit) Driveline (Drive shaft, propeller shaft) AWD system (ITCC, Torsen) Hydraulic system (Oil pump, Linear Solenoid Valve) PROPRIETARY & CONFIDENTIAL JTEKT CORPORATION
Slide 33: 3-1-3) Driveline Business Growth Strategy
33 3-1-3) Driveline Business Growth Strategy As a distinctive system supplier that takes advantage of strengths such as AWD and hydraulics, aim to become the No. 1 & Only One for the driveline business. Competition Technology Market Environmental changes • Electrification (Vehicle/System) • Intense
Slide 34: 3-1-3) Deepen Driveline Field
34 3-1-3) Deepen Driveline Field Strengthen foundation for future growth/expansion (Selection and concentration/cost reduction/strengthen lineup) 2015 2016-2017 2018-2021 2022- NV improvement/High transmission rate • Lightweight/lower Drive loss (Fuel efficiency shaft Selection and Next-gen. product
Slide 35: 3-1-3) Strengthen AWD System
35 3-1-3) Strengthen AWD System ◆Prospect of AWD electrification (1,000 vehicles/year) While the use of electrical AWD E-AWD increases, the demand for the conventional AWD system is expected to remain as it is for the time being Conventional Actions for both are system necessary [FF-model] 1. Integr
Slide 36: 3-1-3) Actions for E-AWD System
36 3-1-3) Actions for E-AWD System E-AWD system development Fr • Motor • Inverter • Transmission + Strength of JTEKT • Hydraulic engineering: (Capacitor) Rr Cooling of motor, lubrication of reducer • TCD: Improved driving performance with our TCD • Utilization of LIC AWD system sales trend (image) E
Slide 37: 3-1-3) Strengthen Hydraulic System
37 3-1-3) Strengthen Hydraulic System Hydraulic Progress/Advance Vehicle knowledge Utilize Contri- electrification Lubrication bution Circuit design Actuator Unit ability advancement Mechanical Pump (MOP) In view of the characteristics such as discharge amount, • Internal gear pump • External gear p
Slide 38: 3-1-3) Actions for FC Parts (Valve/Regulator)
38 3-1-3) Actions for FC Parts (Valve/Regulator) Valve/Regulator High pressure Tank hydrogen supply valve Essential parts for hydrogen’s Reducing valve “out/in” Hydrogen (Contribute to securing safety of station Filling fuel cell vehicles) Discharge valve hole ◆ Action plan/ Direction Long-term (Fie
Slide 39: 3-1-3) Forecast for Mid-term Business Plan for Drivelines
39 3-1-3) Forecast for Mid-term Business Plan for Drivelines ¥95/US$, ¥110/€, ¥16/yuan Although severe situation would continue Growing after 2021 between 2016 and 2020, our initial target is ⇒ Huge leap to become expected to be achieved a leading company Toward 2020 Beyond 2020 (billions of yen) 20
Slide 40: 4) Bearings
40 4) Bearings (Abbreviation list) TRB: Tapered Roller Bearing HUB: Hub unit ・B-HUB (Ball HUB): Ball hub unit ・T-HUB (Tapered HUB): Tapered hub unit NRB: Needle Roller Bearing SBB: Single Ball Bearing LFT: Low Friction Torque JTEKT CORPORATION
Slide 41: 3-1-4) Bearing Business Growth Strategy
41 3-1-4) Bearing Business Growth Strategy Continue creating value, impress customers, and praised by customers — Lift the "Koyo" brand to be the TOP brand in the world — Change of competitive Environmental Intense market competition Evolution of technology foundation changes • Electrification/Auton
Slide 42: 3-1-4) Environmental Change
42 3-1-4) Environmental Change ◆ Automobile power trend No internal In 2030, most vehicles are Number of sales passenger car combustion FCV (1) (2) expected to be equipped with an (millions of vehicles) EV internal combustion engine, PHV therefore impact on sales is to be Internal small, but electri
Slide 43: 3-1-4) Promotion of Regional Strategies
43 3-1-4) Promotion of Regional Strategies • To complete Kokubu Plant restructure • Strengthen business in Japan E.g.) Strengthen NRB • Completion of structure to make SBB above break-even production/development structure • Further growth in China Detail on the next page Europe △ North △ ○ ○ China
Slide 44: 3-1-4) Strengthen Business in Japan (NRB)
44 3-1-4) Strengthen Business in Japan (NRB) Aim for the global top share and strengthen production and development bases in Japan UKK (UTSUNOMIYA KIKI)’s Kiyohara new plant Completion: March 2018 Operation: June 2018 Target sales of NRB produced in Japan for 2020: 120% (vs. 2016) Production in EU,
Slide 45: 3-1-4) Strengthen Production
45 3-1-4) Strengthen Production Strengthen production and promote sophisticated plants [Promotion of unmanned line] 1) Improve plant genba power • Improve productivity, streamlining • Reinforce equipment maintenance/ Replace obsolete equipment 2) Strengthen cost competitiveness • Reduce investment p
Slide 46: 3-1-4) Strengthen Sales
46 3-1-4) Strengthen Sales > Automobile OE • Front-loading activities for electrification trends Market/Customer • Strengthen proposals of new engineering and new products, expand future profit > Industrial OE Keep providing new values • Shift resources to the markets and business of focus Strengthe
Slide 47: 3-1-4) Strengthen Automotive Bearings (1)
47 3-1-4) Strengthen Automotive Bearings (1) Strengthen product potential utilizing JTEKT’s strength ◆ Sales by type ◆ TRB ◆ HUB • Manufacturing reform/optimum • Pursuit of low torque B-HUB specifications for each region • Strengthen T-HUB • Pursue low torque and compact size 3rd generation LFT-IV T
Slide 48: 3-1-4) Strengthen Automotive Bearings (2)
48 3-1-4) Strengthen Automotive Bearings (2) Acceleration in engineering development for electrification/autonomous driving ◆ HUB ◆ SBB • Contribute to autonomous driving • Develop high-function products with our sensing functions foreseeing the changes to electrification Detect road input from HU
Slide 49: 3-1-4) Strengthen Industrial Bearings
49 3-1-4) Strengthen Industrial Bearings Product development responding to a variety of bearing utilization environments ◆ Machine tools ◆ Tunnel boring machine ◆ Sales of industrial BRG • Low torque, • O.D. 7.7 m high-speed (Largest class in Industrial • Improved machining Japan) accuracy • High re
Slide 50: 3-1-4) Forecast for Mid-term Business Plan for Bearings
50 3-1-4) Forecast for Mid-term Business Plan for Bearings Sales and Profit Forecast ¥95/US$, ¥110/€, ¥16/yuan To the values disclosed at the previous IR (Nov., 2017), made upward revisions of the target values, thanks to the increase in quantity and the results of each activity 500 Sales Profit (%)
Slide 51: 5) Machine Tools & Mechatronics
51 5) Machine Tools & Mechatronics JTEKT CORPORATION
Slide 52: 3-1-5) Machine Tools & Mechatronics Business Growth Strategy
52 3-1-5) Machine Tools & Mechatronics Business Growth Strategy Provide the value in all phases of MONOZUKURI Establish the position as a total production line builder with IoE Intense market competition/ Evolution of technology Environmental Changes in competitive foundation changes • Intense cost
Slide 53: 3-1-5) Environment Changes Surrounding Machine Tools
53 3-1-5) Environment Changes Surrounding Machine Tools Automobile power trend Workforce (millions of people) 80 FCV Number of sales of passenger car No internal combustion (millions of vehicles) EV 75 PHV HV 70 Internal combustion GAS 65 2015 2020 2025 Engine downsizing Decrease by five millions In
Slide 54: 3-1-5) Development of production facilities for EV
54 3-1-5) Development of production facilities for EV Responding to HEV/PHV ■ e300G (Downsizing of gasoline engines) • Downsized turbo engine • Increase in three-cylinder engines • Making the cam shafts for the motorcycle into concave cams (India’s tighter regulations for gas emissions) For turbo sh
Slide 55: Gear skiving center brings innovation for products
55 3-1-5Development of production facilities for EV Gear skiving center brings innovation for products Compact and lightweight products Integration Helical Hob tool broaching Hob (φ100) 3.1 [kg] Turning Laser welding 53 Need clearance for hob ■ GS200H 7 1.7 [kg] Minimum interference clearance Integr
Slide 56: 3-1-5) Development of production facilities for EV
56 3-1-5) Development of production facilities for EV Response to EV Response to FCV ● Delivered equipment for ● Delivered equipment for FCV lithium battery • Filament winding machine for FC tanks • Kneader • Coating machine • Press • Coating machine • Drying furnace (Koyo Thermo Systems) Drying fur
Slide 57: 3-1-5) Targeting to be a smart factory partner
57 3-1-5) Targeting to be a smart factory partner Smart machine Kaizen business JTEKT SMART Cutting ■ Add-on device Deformed tool Tool Tool life management Cutting force Workpiece ■ Use case (Successful example) • Do not want to stop the machines, above all Real-time thermal • Want to know the Data
Slide 58: 3-1-5) Targeting to be a smart factory partner: IoE
58 3-1-5) Targeting to be a smart factory partner IoE deliver delight to customers ■ Hawkeye ■ AAA ■ Safety PLC TVMK KOYO MACHINE (TOYODA VAN MOPPES) INDUSTRIES TOYOOKI KOGYO KOYO THERMO KOYO ELECTRONICS SYSTEMS INDUSTRIES Strengthen group cooperation with unique technology and strength fields JTEKT
Slide 59: 3-1-5) Improved Proposal Skill
59 3-1-5) Improved Proposal Skill Front loading by engineering sales + Design innovation Commercialization customer needs Product planning PJ sch. 2019 2020 2021 ••• Company A Module Field test Company B design Company C Monozukuri ••• team Proposal to the projects three years ahead Faster commercia
Slide 60: 3-1-5) Forecast for Machine Tools & Mechatronics
60 3-1-5) Forecast for Mid-term Business Plan for Machine Tools & Mechatronics FY2018 Sales and Profit Forecast ¥95/US$, ¥110/€, ¥16/yuan Proposal to new needs (billions of yen) 200 (195.0) Sales 180 166.6 172.0 160 Profit (%) 140 10% 120 100 80 60 5% 40 20 0 0% 2016 2017 2018 2019 2022 JTEKT CORPOR
Slide 61: 6) Actions for New Business
61 6) Actions for New Business JTEKT CORPORATION
Slide 62: 3-1-6) Actions for New Business (J-PAS)
62 3-1-6) Actions for New Business (J-PAS) Our first action: Start selling a power-assist suit from summer 2018 ● Fine adjustable assist control that harmonizes with human motions ● Motor-assist that allows highest class output Assist torque *1 [Nm] High output System mass (include battery) [kg] *1:
Slide 63: 3-1-6) Actions for New Business (LiC)
29 3-1-6) Actions for New Business (LiC) Lithium ion capacitor A capacitor that can be mounted to vehicle with no need of cooling Planning to expand to various fields ★ Power source regeneration / Energy saving ★ Engine start-assist at low temperature ★ Backup power ★ Instantaneous stop assist ★ Eme
Slide 64: 3-2) Actions for Corporate Value Enhancement
64 3-2) Actions for Corporate Value Enhancement For Enhancing corporate value - Strengthen the fundamentals JTEKT CORPORATION
Slide 65: 3-2) Actions for Corporate Value Enhancement
65 3-2) Actions for Corporate Value Enhancement With a healthy sense of crisis, promote building a business foundation that can solve a growth bottleneck self-reliantly and autonomously Corp. value Business New Shaping a Better Future through the Spirit of “No.1 & Only One” EV EV Business Present DL
Slide 66: 3-2) Investment to Strengthen Business Foundation
3-2) Investment to Strengthen Business Foundation 66 (Non-financial value) Accelerate human resource development, investment for safety & accident prevention, and further operational reform & utilization of IT, that contribute to the establishment of the company’s long-term business foundation (mill
Slide 67: 3-2) Improve Productivity Through Working Style Reform
67 3-2) Improve Productivity Through Working Style Reform Reform awareness Deliver the top management’s message to all the employees Share policy Town meeting MY21 activity 5: Goal Non-Japanese (Ideal) employees/Women’s Reform of Operation advancement Working style Reform of system 4: Standardizatio
Slide 68: 3-2) Strengthen Policy Management
68 3-2) Strengthen Policy Management To actualize growth strategies (Mid-term plan), Growth strategies (Mid-term management plan) incorporate the policy management down to the priority themes of individual level. HQ policy Dept. policy Communicate Dept. (Actions and targets) (Make adjustment) Contri
Slide 69: 3-2) Improve Workplace Management
69 3-2) Improve Workplace Management • The target awareness level improved for the company vision, workplace mission, etc. • Awareness gap among positions has decreased year by year. 100% マネジメント Management ライン⻑ Line leader メンバー Member Target awareness level (*) 80% Awareness gap has decreased 60% ye
Slide 70: 3-2) Operation Reform of Indirect Divisions
70 3-2) Operation Reform of Indirect Divisions Promotion situation • Consecutively expanding operation reform activity since FY2015 (30 -> 70 -> 132 departments). - Currently working on “Level 1 (Visualization) to Level 3 (Standardization)” - Start utilizing IT for Level 3 (Standardization) • From F
Slide 71: 3-2) Actions for Sophisticated IT
71 3-2) Actions for Sophisticated IT Entering into the phase of effect reaping of intracompany utilization of IT from FY2018. Mid-long term (Establishment of global operation)/ Short term (Fixed-cost reduction). 2018 2019 2020 Policy-related job Long term We have been loading bullets for the establi
Slide 72: 3-2) Work Style Sophistication for Skilled Workers
72 3-2) Work Style Sophistication for Skilled Workers Certain Maintenance training program after joining JTEKT in- house school. (Skilled Equipment Process level) diagnosis Preventive Execution of educated maintenance Engineer results Equipment diagnostic Advanced engineer Manufacturing Manufacturin
Slide 73: 3-2) Actions Considerate of ESG
73 3-2) Actions Considerate of ESG • Promote activities using GPIF-selected ESG indices as benchmarks. • Performing activities for in-company enlightenment and confirmation/strengthening of information disclosure. Council for Enhancement of Corporate Value* * Mainly consisted of the board members ●
Slide 74: Thank you
74 Thank you JTEKT CORPORATION
Slide 75: (Reference) Quarterly Result Trend
75 (Reference) Quarterly Result Trend (billions of yen) Operating profit rate 7.4% 5.5% 5.8% 5.8% 6.6% 5.4% 5.5% 5.6% 4.7% 4.8% 392.3 366.6 349.9 354.1 346.5 338.9 335.7 321.3 323.8 318.9 Sales 26.2 25.7 20.4 20.3 18.5 18.6 19.0 17.2 15.3 16.1 Operating profit FY2014*1 FY2015*2 FY2016 1Q 2Q 3Q 4Q FY
Slide 76: (Reference) Sales Forecast by Business Units
76 (Reference) Sales Forecast by Business Units JTEKT CORPORATION
Slide 77: (Reference) Sales Forecast by Company Locations
77 (Reference) Sales Forecast by Company Locations JTEKT CORPORATION
Slide 78: (Reference) Financial Results by Business (Mechanical Components)
(Reference) Financial Results by Business 78 (Mechanical Components) Sales Quarterly Trend OP Quarterly Trend OP Profit OP Profit (%) 7.4% 5.3% 5.8% 5.7% 5.3% 6.0% 5.1% 4.9% 4.8% 5.1% STG DL BRG 326.7 345.3 299.4 289.9 292.9 311.9 300.6 306.8 279.8 281.3 110.2 103.9 107.1 100.6 96.0 93.6 101.6 103.2
Slide 79: (Reference) Financial Results by Business (Machine Tools & Others)
(Reference) Financial Results by Business 79 (Machine Tools & Others) Sales Quarterly Trend OP Quarterly Trend Sales Profit Sales Profit (%) MT&M Others 10.9% 46.8 39.5 41.2 42.5 0.3 8.1% 37.6 39.7 39.8 7.7% 7.9% 7.6% 0.6 7.1% 6.6% 6.9% 2.9 3.0 31.3 35.0 0.3 0.3 0.4 30.8 0.3 4.6% 0.2 1.0 2.9% 5.1 46
Slide 80: (Reference) Financial Results by Region (Japan)
80 (Reference) Financial Results by Region (Japan) (billions of yen) Quarterly Trend Operating profit rate 6.0% 5.1% 6.3% 5.1% 6.0% 5.3% 3.3% 3.3% 2.7% 2.0% 161.1 139.8 139.9 142.4 146.5 131.8 142.5 146.9 134.4 125.8 Sales 9.1 8.2 8.7 8.5 7.2 7.3 4.6 4.4 Operating 3.5 2.5 profit FY2014 FY2015 FY2016
Slide 81: (Reference) Financial Results by Region (Europe)
81 (Reference) Financial Results by Region (Europe) (billions of yen) Quarterly Trend Operating profit rate 5.3% 2.3% 1.9% 2.9% 2.7% 2.7% 2.3% 2.5% 0.6% 1.3% 65.2 52.8 53.6 52.1 54.7 52.7 51.8 48.5 42.6 45.2 Sales Operating 2.8 profit 1.5 1.6 1.2 1.0 1.1 1.2 1.1 0.3 0.6 FY2014 FY2015 FY2016 FY2017 1
Slide 82: (Reference) Financial Results by Region (North America)
(Reference) Financial Results by Region 82 (North America) (billions of yen) Quarterly Trend 6.4% 5.6% Operating profit rate 4.3% 3.4% 3.5% 3.7% 2.3% 3.8% 4.6% 1.4% 82.1 78.2 75.7 76.2 74.0 76.3 74.5 68.8 70.5 69.1 Sales 4.7 4.2 3.8 3.3 2.8 2.8 2.3 2.4 1.6 Operating 1.0 profit FY2014 FY2015 FY2016 F
Slide 83: (Reference) Financial Results by Region (Asia/Oceania)
(Reference) Financial Results by Region 83 (Asia/Oceania (Including India) (billions of yen) Quarterly Trend 11.1% 10.7% Operating profit rate 9.1% 9.3% 9.8% 9.7% 8.5% 8.7% 9.3% 8.3% 45.3 43.7 39.2 41.4 37.3 38.8 32.6 31.8 31.9 33.8 Sales 4.8 4.3 4.3 4.0 3.6 3.1 2.7 2.9 2.9 2.9 Operating profit FY20
Slide 84: (Reference) Financial Results by Region (China)
84 (Reference) Financial Results by Region (China) (billions of yen) Quarterly Trend 16.9% 18.0% 17.0% 16.6% 15.6% Operating profit rate 15.3% 15.3% 12.5% 14.2% 12.0% 41.6 36.1 34.8 35.2 35.2 34.3 32.5 29.4 27.7 25.2 6.1 6.3 Sales 5.9 5.3 5.5 4.6 4.9 4.6 4.5 3.0 Operating profit FY2014 FY2015 FY2016
Slide 85: (Reference) Financial Results by Region (South America & Others)
(Reference) Financial Results by Region 85 (South America & Others) (billions of yen) Quarterly Trend 8.8% 8.2% 7.2% 6.4% 5.3% 5.3% Operating profit rate 3.3% 3.8% (2.4%) (3.8%) 6.8 7.3 7.1 7.0 6.6 6.0 5.2 5.3 5.3 5.4 Sales 0.6 0.6 0.5 0.4 0.3 Operating 0.2 0.2 0.1 profit (0.1) (0.2) FY2014 FY2015 F