Japan Aviation Electronics Industry, Limited · TSE:6807

Japan Aviation Electronics Industry — 1H FY2017 Earnings Presentation

27 slides from Japan Aviation Electronics Industry's earnings presentation, Oct 25, 2017

  1. Slide 1: Financial Results for 1H of FY2017 and Prospects for FY2017

    Financial Results for 1H of FY2017 and Prospects for FY2017 October 25, 2017 6807 Japan Aviation Electronics Industry, Ltd. Copyright ©2017. Japan Aviation Electronics Industry. Ltd

  2. Slide 2: Agenda

    Agenda Technology to Inspire Innovation Ⅰ. Financial Results for 1H of FY2017 Ⅱ. Prospects and Strategy for FY2017 Copyright ©2017. Japan Aviation Electronics Industry. Ltd 2

  3. Slide 3: Financial Results for 1H of FY2017

    Technology to Inspire Innovation Ⅰ. Financial Results for 1H of FY2017 （April 2017 ~ September 2017） ※ Amounts less than 100 million JPY are rounded off. Copyright ©2017. Japan Aviation Electronics Industry. Ltd 3

  4. Slide 4: Net Sales and Incomes

    Net Sales and Incomes Technology to Inspire Innovation (JPY in 100 millions) Year/Year Sequential FY2016 FY2017 Projections Change Change 1H FY2017/ 1H FY2017/ (anouced 1H 2H 1H 1H FY2016 2H FY2016 Apr, 2017) （％） （％） Net Sales 899 1,196 1,245 346 139% 49 104% 1,200 Operating 41 79 95 54 229% 16 120%

  5. Slide 5: Net Sales and Incomes

    Net Sales and Incomes Technology to Inspire Innovation （JPY in 100 millions） Net Sales 1,245 1,196 971 Operating 899 Income 824 Ordinary Income 124 115 95 85 79 55 65 54 41 26 1H FY2015 2H FY2015 1H FY2016 2H FY2016 1H FY2017 Copyright ©2017. Japan Aviation Electronics Industry. Ltd 5

  6. Slide 6: Net Sales by Business Segment

    Net Sales by Business Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year Sequential FY2016 FY2017 Projections Change Change 1H FY2017/ 1H FY2017/ (announced 1H 2H 1H 1H FY2016 2H FY2016 Apr, 2017) Conponent Growth Growth Ratio Rate Rate Connector 799 1,093 1,143 92% 343 143% 49

  7. Slide 7: Connector Business

    Connector Business Technology to Inspire Innovation Sales by Market Segment （JPY in 100millions） Sales：143% (of 2016 1H) 1,143 ▶ Mobile Devices 1,000 • Substantial sales increase for North American customers Year/Year 799 Change • Leveraged by new products 692 (assembled with outsourced products) an

  8. Slide 8: UIS Business

    UIS Business Technology to Inspire Innovation Sales by Market Segment 50 (JPY in 100millions) Sales：111% (of 2016 1H) 41 ▶ Automotive 37 • Maintained the previous year’s sales level Year/Year Change ▶ Industrial & Infrastructure Automotive • Increased sales of touch- 23 98% sensitive control panel f

  9. Slide 9: Aerospace Business

    Aerospace Business Technology to Inspire Innovation Sales by Market Segment 80 （JPY in 100millions） Sales：97% (of 2016 1H) ▶ Industrial & Infrastructure 59 • DDM for oil drilling sensor 60 57 grew steadily for in North Year/Year America Change ※DDM（Digital Directional Industrial Infrastructure Modul

  10. Slide 10: Operating Income by Business Segment

    Operating Income by Business Segment Technology to Inspire Innovation (JPY in 100 millions) FY2016 FY2017 Year/Year Sequential Change Change 1H 2H 1H Connector 64 97 112 48 15 8.0% 8.9% 9.8% UIS 4 4 4 0 0 9.8% 9.3% 9.2% Aerospace -4 -2 1 5 2 -6.8% -2.8% 1.6% Others -22 -20 -22 0 -1 Total 41 79 95 53

  11. Slide 11: Prospects and Strategy for FY2017

    Technology to Inspire Innovation Ⅱ. Prospects and Strategy for FY2017 （April 2017 ~ March 2018） Copyright ©2017. Japan Aviation Electronics Industry. Ltd 11

  12. Slide 12: Prospect for 2H of FY2017

    Prospect for 2H of FY2017 Technology to Inspire Innovation ▶ Market Outlook for 2H • Stable growth in Automotive, Industrial & Infrastructure sectors • Slowdown due to seasonal decline in demand for North American smartphones (to be carefully watched on the trend) • Uncertainty in new product launch

  13. Slide 13: Prospects for FY2017

    Prospects for FY2017 Technology to Inspire Innovation (JPY in 100 millions) Year/Year FY2016 FY2017 Change Projections (announced 2H FY2017 1H Projections Projections FY2017/FY2016 Apr, 2017) （％） Net Sales 2,095 1,245 1,100 2,345 250 112% 2,300 Operating Income 121 95 80 175 54 145% 160 (to Net Sale

  14. Slide 14: Prospect for Sales by Business Segment

    Prospect for Sales by Business Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year FY2016 FY2017 Change Projections (announced 2H FY2017 1H Projections Projections FY2017/FY2016 Apr,2017) （％） Connector 1,893 1,143 990 2,133 240 113% 2,090 UIS 81 41 41 82 1 101% 82 Aerospace 114

  15. Slide 15: Connector Business Strategy [Mobile Devices①]

    Connector Business Strategy[Mobile Devices①] Technology to Inspire Innovation Sales of Mobile Devices ▶ Uncertainties about demands of 2H for North American and 1,232 Chinese customers （JPY in 100 millions） 1,052 ▶ Fully execute 2H business plan and accelerate actions for 540 the future growth 707 •

  16. Slide 16: Connector Business Strategy [Mobile Devices②] USB Type-C DX07 series

    Connector Business Strategy[Mobile Devices②] Technology to Inspire Innovation USB Type-C connector “DX07 series” ▶ Execute 2H activities to achieve ¥10 billion annual sales • Start full-fledged mass-production for major Chinese smartphone customers • Expand marketing to key targeted customers in hig

  17. Slide 17: Connector Business Strategy [Automotive①]

    Connector Business Strategy[Automotive①] Technology to Inspire Innovation Sales for Automotive ▶ For Achieving 2H Business Plan • Expand product portfolio （JPY in 100 millions）Horizontal trend among existing customers in European market 310 305 288 • Secure more business from Japanese customers than

  18. Slide 18: Connector Business Strategy [Automotive②]

    Connector Business Strategy[Automotive②] Technology to Inspire Innovation Strengthen global marketing by expanding product line-up for ADAS and EV markets Connectors for ADAS ADAS MX55 Series MX49A Series ▶ Expand sales of connectors for automotive digital camera to several Japanese customers, in ad

  19. Slide 19: Connector Business Strategy [Industrial & Infrastructure]

    Connector Business Strategy[Industrial & Infrastructure] Technology to Inspire Innovation Sales for ▶ For Achieving 2H Business Plan Industrial & Infrastructure • Target Japanese world-class factory automation customers • Acquire purchase orders in 104 various market segments ▶ For Future Growth 89

  20. Slide 20: UIS Business Strategy

    UIS Business Strategy Technology to Inspire Innovation ▶ Expand product line-up of capacitive touch-sensitive panel for automotive ▶ Start mass production of touch-sensitive panel (film-cell) for automotive in 2H Glass Film Standard Type Full Pellucidity Metal Mesh Metal Mesh (ITO) Type (ITO) Sensor

  21. Slide 21: Aerospace Business Strategy (Oil Drilling Sensor)

    Aerospace Business Strategy (Oil Drilling Sensor) Technology to Inspire Innovation Oil Drilling Sensor ※DDM（Digital Directional Module） ▶ For Achieving 2H Business Plan • Strengthen sales activities to capture more business of DDM which was successfully launched in North American market • Enhance lo

  22. Slide 22: Technology to Inspire

    Technology to Inspire Innovation Technology to Inspire

  23. Slide 23: Cautionary Statement

    <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 October 25, 2017, and include risks and uncertainties. The targets noted in these materials are not

  24. Slide 24: Reference

    Reference Technology to Inspire Innovation Copyright ©2017. Japan Aviation Electronics Industry. Ltd 24

  25. Slide 25: Net Sales by Market Segment

    Net Sales by Market Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year Sequential FY2016 FY2017 Projections Change Change 1H FY2017/ 1H FY2017/ (anounced 1H 2H 1H 1H FY2016 2H FY2016 Apr, 2017) Component (%) (%) Ratio Mobile Devices 395 657 692 44% 297 175% 35 105% 670 Automoti

  26. Slide 26: Sales by Market for 1H FY2017

    Sales by Market for 1H FY2017 Technology to Inspire Innovation ▶ Sales by Market of 1Q FY2017 is re-classified. Sales by Market Sales by Market (JPY in 100 millions) (Company total) (Connector) FY2017 592 1Q 2Q 1H 550 Mobile Devices 330 363 692 Automotive 164 167 331 Mobile 363 330 Devices Indstrial

  27. Slide 27: Prospect for Income by Market Segment

    Prospect for Income by Market Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year FY2016 FY2017 Projection Change (announced 2H 1H Projections FY2017/FY2016 Apr, 2017) Projections （％） Mobile 1,052 692 540 1,232 180 117% 1,210 Devices Automotive 655 331 340 671 16 103% 670 Indust

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