Japan Aviation Electronics Industry, Limited · TSE:6807
Japan Aviation Electronics Industry — FY2019 Earnings Presentation
24 slides from Japan Aviation Electronics Industry's earnings presentation, Apr 24, 2020
Slide 1: Financial Results for FY2019
Financial Results for FY2019 April 24, 2020 6807 Japan Aviation Electronics Industry, Ltd. Copyright ©2020. Japan Aviation Electronics Industry. Ltd
Slide 2: Agenda
Agenda Technology to Inspire Innovation I. Financial Results for FY2019 II. Prospects for FY2020 Copyright ©2020. Japan Aviation Electronics Industry. Ltd 2
Slide 3: I. Financial Results for FY2019
Technology to Inspire Innovation Ⅰ. Financial Results for FY2019 (From April 1, 2019 to March 31, 2020) Copyright ©2020. Japan Aviation Electronics Industry. Ltd 3
Slide 4: Net Sales and Profits
Net Sales and Profits Technology to Inspire Innovation (JPY in 100millions) FY2018 FY2019 Projections Year/Year (announced 1H 2H 1H 2H Change Oct, 2019) Net Sales 1,180 1,042 2,221 1,008 1,073 2,081 -140 94% 2,030 Operating 94 79 173 72 70 142 -32 82% Profit 145 to Net Sales 7.9% 7.6% 7.8% 7.1% 6.5%
Slide 5: Sales by Market Segment
Sales by Market Segment Technology to Inspire Innovation (JPY in 100millions) FY2018 FY2019 Year Projections /Year announced 1H 2H 1H 2H Change Oct, 2019 Mobile 582 466 1,049 477 525 1,001 95% 940 Devices Automotive 369 360 729 343 361 704 97% 700 Industrial & 171 153 324 137 129 267 82% 280 Infrast
Slide 6: Net Sales and Profits By Business Segment
Net Sales and Profits By Business Segment Technology to Inspire Innovation FY2018 FY2019 Projections Year/Year （JPY in 100millions） announces 1H 2H 1H 2H Change Oct, 2019 Sales 1,062 917 1,979 891 945 1,836 -143 93% 1,765 Connector Segment Profit 105.7 87.3 193.0 85.0 88.9 173.9 -19.2 90% － to Net S
Slide 7: Connector Business [Quarterly Net Sales and Profit]
Connector Business［Quarterly Net Sales and Profit］ Technology to Inspire Innovation ▶ Mobile Device: Sales remained high until 3Q due to strong demand for mobile phones in China and launch in North America, but demand in 4Q decreased due to seasonality and novel coronavirus (COVID-19) diseases. ▶ Au
Slide 8: UIS Business [Quarterly Net Sales and Profit]
UIS Business［Quarterly Net Sales and Profit］ Technology to Inspire Innovation ▶ Automotive: Production of new automotive touch sensor products (film sensors) gradually started and sales increased in the second half of the fiscal year ▶ Industrial and Infrastructure: Sales remained almost unchanged w
Slide 9: Aerospace Business [Quarterly Net Sales and Profit]
Aerospace Business［Quarterly Net Sales and Profit］ Technology to Inspire Innovation ▶ Industrial and Infrastructure: Demand declined for oil field drilling sensors due to the drop in crude oil prices Sales of products for semiconductor manufacturing equipment (linear motors, etc.) bottomed out, but
Slide 10: Capital Investment & Depreciation
Capital Investment & Depreciation Technology to Inspire Innovation 245 Investment in productive infrastructure (JPY in 100 millions) 222 7 (New Plant/Expansion) 176 Breakdown of 34 Increased Investment 11 Expansion of facilities in response 239 to increased smartphone demand 188 due to 5G 164 • Bo
Slide 11: II. Prospects for FY2020
Technology to Inspire Innovation Ⅱ. Prospects for FY2020 Copyright ©2020. Japan Aviation Electronics Industry. Ltd 11
Slide 12: Business Environment [Demand and Sales]
Business Environment [Demand and Sales] Technology to Inspire Innovation ▶ Business environment by market Mobile and ICT devices • Outlook for final consumption is uncertain although market recovery from later 1Q to 2Q is expected due to the launch of new products • Delay of customers’ overseas pr
Slide 13: Current Business Environment [Production]
Current Business Environment [Production] Technology to Inspire Innovation ▶ Operation status of the JAE Group's manufacturing sites adversely affected by COVID-19 pandemic, as of April 24 JAE Philippines: Suspended operation from March 17 Resuming operations in a limited scope, respecting the enh
Slide 14: Prospects for FY2020
Prospects for FY2020 Technology to Inspire Innovation ▶ The COVID-19 outbreak is expected to give significant impact to our performance, such as • Operational restrictions on the Group's overseas production sites, • Customers’ production cutbacks and shutdowns, • Sluggish final consumption in each m
Slide 15: Current Situation (April – May Forecast)
Current Situation (April – May Forecast) Technology to Inspire Innovation Outlook for June and beyond is uncertain, since it is very hard to determine when our factories affected will resume operations and how final demand will ramp up ▶ Mobile Device: Difficult to predict when customers will resume
Slide 16: Progress of Mid-Term Growth Initiatives (Mobile Device)
Progress of Mid-Term Growth Initiatives（Mobile Device） Technology to Inspire Innovation Capturing business opportunities for 5G ecosystem Smart Phone Base Station ▶ In FY2019, 24% year-on-year sales ▶ Products for domestic base station growth was achieved for Chinese manufacturers launched and sales
Slide 17: Progress of Mid-Term Growth Initiatives (Automotive)
Progress of Mid-Term Growth Initiatives（Automotive） Technology to Inspire Innovation Focus on CASE driven Automotive Markets ADAS/Connected EV/Others ▶ ADAS ▶ High-current, high-voltage connectors for EV For Cameras Started mass production for European Expanding mainly to Japanese makers manufac
Slide 18: Technology to Inspire Innovation
Technology to Inspire Innovation
Slide 19: [Reference] Sales by Market Segment [5 years trend]
［Reference］Sales by Market Segment［5 years trend］ Technology to Inspire Innovation ▶ Mobile device: Sales decreased for the specific products with built-in procured components peaked out in FY2017 ▶ Automotive: Both Japanese and European customers were sluggish in FY2019 due to stagnant global autom
Slide 20: [Reference] Impact by the COVID-19 outbreak (FY2019)
[Reference] Impact by the COVID-19 outbreak（FY2019） Technology to Inspire Innovation ▶ Impact on production JAE Wuxi (connector) & JAE Wujiang (connector/UIS/Aerospace) Operations were suspended after the Chinese New Year holiday season until February 9, and resumed on February 10 JAE Philippine
Slide 21: [Reference] Connector Business [annual performance]
［Reference］Connector Business［annual performance］ Technology to Inspire Innovation (JPY in 100 millions) Sales by Market Segment Net sales: 93%, year/year Year/Year Change ▶ Mobile devices 1,979 93% • Solid sales to customers in North 1,836 America • Gained market share for smartphone Mobile Devices
Slide 22: [Reference] UIS Business [annual performance]
［Reference］UIS Business［annual performance］ Technology to Inspire Innovation (JPY in 100 millions) Sales by Market Segment Year/Year Change 90 Net sales: 110%, year/year 81 110% ▶ Automotive (Capacitive Touch Panels) Significant increase due to 132% expanding models adopting new Automotive 45 59 pro
Slide 23: [Reference] Aerospace Business [annual performance]
［Reference］Aerospace Business［annual performance］ Technology to Inspire Innovation Sales by Market Segment 152 Year/Year Net sales: 97%, year/year Change 149 ▶ Industrial & infrastructure, and (JPY in 100 millions) 97% Automotive Industrial & Sales decreased from the 2H due Infrastructure 110 96 to
Slide 24: Cautionary Statement
Technology to Inspire Innovation <Cautionary Statement> The plans, strategies & results forecasts and targets for our company and our consolidated affiliates (hereinafter JAE) noted in these materials are forecasts and targets as of April 24, 2020, and include risks and uncertainties. The targets no
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