JTEKT Corporation · TSE:6473
JTEKT — FY2023 Earnings Presentation
37 slides from JTEKT's earnings presentation, May 7, 2024
Slide 1: Financial results of fiscal year ended March 2024
1 Financial results of fiscal year ended March 2024 May 7 th, 2024 JTEKT CORPORATION
Slide 2: Overview of Financial results
Overview of Financial results 2 ■ Revenue increased due to easing the impact of COVID-19, recovery from shortage of semiconductors, and favorable exchange rates. Result ■ Business profit increased with revenue increase, steady cost reduction activities and favorable exchange rates despite investment
Slide 3: Contents
Contents 3 １．Results of fiscal year ended March 2024 P4 ２．Forecasts for Fiscal Year ending March 2025 P9 ３. Review of the first-medium-term plan P 16 ４. Appendix P 23 JTEKT CORPORATION
Slide 4: FY2023 Results – Consolidated performance
1-1) FY2023 Results – Consolidated performance 4 ■ Revenue increased due to easing the impact of COVID-19, recovery from shortage of semiconductors, and favorable exchange rates. ■ Business profit increased with revenue increase, steady cost reduction activities and favorable exchange rates despite
Slide 5: FY2023 Results – Business profit analysis
1-2) FY2023 Results – Business profit analysis 5 ■ Inflation and sales price down were offset by cost reduction activities. ■ Business profit increased while necessary investments for future growth. (R&D, Fundamentals for Sales growth) Unit : Billion of yen JTEKT CORPORATION
Slide 6: FY2023 Results – by Region
1-3) FY2023 Results – by Region 6 ■ Sales increased in all regions except China. Profit increased in Japan, North America and Asia & Others due to favorable exchange rates, and promoting cost reduction activities. Revenue Business profit Unit : Billion of yen FY2022 FY2023 Unit : Billion of yen (Rat
Slide 7: FY2023 Results – by Business unit
1-4) FY2023 Results – by Business unit 7 ■ Profit increased in automotive due to sales increase, favorable foreign exchange rates, and cost reduction activities. Decreased in the industrial & bearings due to change in product mix, etc. Revenue Business profit Unit : Billion of yen FY2022 FY2023 Unit
Slide 8: Contents
Contents 8 １．Results of fiscal year ended March 2024 P4 ２．Forecasts for Fiscal Year ending March 2025 P9 ３. Review of the first-medium-term plan P 16 ４. Appendix P 23 JTEKT CORPORATION
Slide 9: FY2024 Forecast – Consolidated performance
2-1) FY2024 Forecast – Consolidated performance 9 ■ The market environment is uncertain in each regions. ■ Business profit increase with certain resources for future growth by accelerating cost reduction activities. (Ratio to revenue) Unit:Billion of yen Change FY2023 FY2024 Change ratio Revenue 1,8
Slide 10: FY2024 Forecast – Business profit analysis
2-2) FY2024 Forecast – Business profit analysis 10 ■ Inflation and sales price down are aimed to be offset by cost reduction activities. ■ Business profit increase with certain resources for future growth such as HR, R&D, Fundamentals for sales growth and IT, etc. Unit : Billion of yen JTEKT CORPORA
Slide 11: FY2024 Forecast – by Region
2-3) FY2024 Forecast – by Region 11 ■ Revenue and Profit increase in Japan and North America. Business profit decrease in Europe, China and Asia & Others due to severe market environments. Revenue Business profit Unit : Billion of yen FY2023 FY2024 Unit : Billion of yen (Ratio to revenue) FY2023 FY2
Slide 12: FY2024 Forecast – by Business unit
2-4) FY2024 Forecast – by Business unit 12 ■ Profit decrease in Steering Systems due to fixed cost increase related to investments for future growth such as R&D and fundamentals for sales growth. Revenue Business profit Unit : Billion of yen FY2023 FY2024 Unit : Billion of yen (Ratio to revenue) FY2
Slide 13: Return to shareholders
2-5) Return to shareholders 13 ■ Dividend for FY2023 is 36yen. (Year-end dividend 20yen) ■ Expected dividend for FY2024 is 30yen under our current dividend policy. (Interim 15yen, Year-end 15yen) Divinded payout ratio (%) 685.2 55.4 30.3 29.8 30.0 30.7 Payout 27.4 29.6 29.7 29.4 ratio 30% Upper row
Slide 14: Reduction of cross-shareholdings
2-6) Reduction of cross-shareholdings 14 ■ Promote activities under disciplined financial policies for ensuring financial soundness. ■ “Divesting/Reducing the cross-shareholdings“ steadily to improve capital efficiency. ➔ Continue and accelerate the reduction of cross-shareholdings to zero, without
Slide 15: Contents
Contents 15 １．Results of fiscal year ended March 2024 P4 ２．Forecasts for Fiscal Year ending March 2025 P9 ３. Review of the first-medium-term plan P 16 ４. Appendix P 23 JTEKT CORPORATION
Slide 16: First Medium-term Business Plan review
3-1) First Medium-term Business Plan review -The gap between FY2023 results and business profit target- 16 ■ We penetrated important key performance indicator "Improvement of break-even point" throughout the JTEKT group and implemented improvement activities steadily. ■ “Strategic investment” is car
Slide 17: First Medium-term Business Plan review – Strengthen management foundation
3-2) First Medium-term Business Plan review -Strengthen management foundation- 17 ◼ Structural reforms including consolidation and elimination of subsidiary are progressing as planned and as a result it contributes reducing fixed cost largely. ◼ The loss costs occurring due to personnel shortages, p
Slide 18: First Medium-term Business Plan review – Strengthen Competitiveness
3-3) First Medium-term Business Plan review -Strengthen Competitiveness- 18 ◼ Working on strong product development through benchmarking competitors and reviewing business negotiations. ◼ Carrying out cost reduction activities thoroughly such as unmanned production and labor saving. Unmanned product
Slide 19: First Medium-term Business Plan review – Seeding for the future
3-4) First Medium-term Business Plan review -Seeding for the future- 19 ◼ Expanding investment for management infrastructure like human resources, for sustainability management. ◼ Strengthening investment for advanced development for electrification of automobiles and automated driving. Investment f
Slide 20: First Medium-term Business Plan review – human resources and organizational structures
3-5) First Medium-term Business Plan review -development of human resources and organizational structures- 20 ■ We will take time to develop human resources and structures that can put “JTEKT BASIC PRINCIPLE” into practice. (oriental medicine) ■ Be a company where all group employees can work with s
Slide 21: Announcement schedule for the second Medium-term Business Plan
3-6) Announcement schedule for the second Medium-term Business Plan 21 ■ Please wait for the announcement. Second Medium-term Business Plan is scheduled to be announced in late August. Please wait for the announceme nt in August. J-Nyan TEK-NYAN JTEKT CORPORATION
Slide 22: Contents
Contents 22 １．Results of fiscal year ended March 2024 P4 ２．Forecasts for Fiscal Year ending March 2025 P9 ３. Review of the first-medium-term plan P 16 ４. Appendix P 23 JTEKT CORPORATION
Slide 23: Management indicators – Cash Flow, Capital Efficiency
4-1) Management indicators 23 ■ Free C/F was 83.1 billion yen, mainly due to increased profit. ROE, ROA, and ROIC all improved. Cash Flow statement Capital Efficiency Indicators Upper row Cash flows from operating activities FCF ROE ROA ROIC (%) Lower row Cash flows from investing activities Unit :
Slide 24: Management indicators – CAPEX, D&A, R&D
4-2) Management indicators 24 ■ CAPEX：Aggressive investments to support growth. (New business/Strategic Products, ESG...) ■ R&D ：Streamlining mass production development while steadily promoting advanced development for future growth. Capital expenditures Depreciation & amortization R&D expenses 売上収
Slide 25: Management indicators – Inventories, Debt, Cash
4-3) Management indicators 25 Inventories Interest-bearing debt / Cash reserves Inventry turmover month Unit : Billion of yen Left bar Interest-bearing debt NET DE Ratio Right bar Cash reserves Unit : Billion of yen 1.6 1.8 1.7 1.7 1.6 0.39 0.30 0.22 0.20 267.0 328.1 0.09 247.5 229.0 286.2 261.7 255
Slide 26: Financial statements – Assets, Liabilities and equity
4-4-1) Financial statements 26 Assets Liabilities and equity Unit : Billion of yen Unit : Billion of yen Liabilities Assets FY2022 FY2023 Change FY2022 FY2023 Change and equity Cash and cash Trade and other 123.8 167.0 ＋43.1 346.5 388.9 ＋42.3 equivalents payables Trade and other Interest-bearing 350
Slide 27: Financial statements – Profit or Loss, Cash Flows
4-4-2) Financial statements 27 Consolidated Statement of Profit or Loss Consolidated Statement of Cash Flows Unit : Billion of yen Unit : Billion of yen FY2022 FY2023 Change FY2022 FY2023 Change Cash flows from Revenue 1,678.1 1,891.5 ＋213.3 operationg activities 78.2 154.4 ＋76.1 Cash flows from Bus
Slide 28: Performance comparison – FY2023 Results (by Region)
4-5-1) Performance comparison – FY2023 Results (by Region) 28 Unit:Billion of yen Foreign Change excluding Region FY2022 FY2023 change FY2023 exchange foreign exchange Japan 638.4 735.7 +97.2 +15.2% - 735.7 +97.2 +15.2% North America 400.1 466.5 +66.3 +16.6% ＋33.2 433.2 +33.1 +8.3% Europe 196.2 239.
Slide 29: Performance comparison – FY2023 Results (by Business unit)
4-5-2) Performance comparison – FY2023 Results (by Business unit) 29 Unit:Billion of yen Foreign Change excluding Business unit FY2022 FY2023 change FY2023 exchange foreign exchange Steering 806.2 912.0 ＋105.7 +13.1% ＋41.4 870.5 ＋64.2 +8.0% Drivelines 336.3 432.3 ＋95.9 +28.5% ＋9.5 422.8 ＋86.4 +25.7%
Slide 30: Quarterly result trend – by Region
4-6-1) Quarterly result trend – by Region 30 円 Unit : Billion of yen 1Q 2Q 3Q 4Q FY2022 Revenue Business profit Revenue Business profit Revenue Business profit Revenue Business profit Japan 138.1 1.2 0.9% 164.0 9.8 6.0% 159.8 7.0 4.4% 176.3 10.3 5.9% North America 89.3 -1.0 -1.2% 101.3 -0.8 -0.9% 96
Slide 31: Quarterly result trend – by Business unit
4-6-2) Quarterly result trend – by Business unit 31 Unit : Billion of yen 1Q 2Q 3Q 4Q FY2022 Revenue Business profit Revenue Business profit Revenue Business profit Revenue Business profit Steering Systems 177.0 -3.4 -0.2% 205.9 4.8 0.2% 202.5 5.6 0.3% 220.7 15.5 0.7% Drivelines 81.9 0.8 0.1% 79.0 1
Slide 32: Business profit analysis – Steering Systems / Drivelines
4-7-1) Business profit analysis – Steering Systems / Drivelines 32 Unit : Billion of yen Steering Systems Unit : Billion of yen Drivelines JTEKT CORPORATION
Slide 33: Business profit analysis – Industrial & Bearings / Machine tools
4-7-2) Business profit analysis – Industrial & Bearings / Machine tools 33 Unit : Billion of yen Industrial & Bearings Unit : Billion of yen Machine tools *Others excluded JTEKT CORPORATION
Slide 34: Performance comparison – FY2024 Forecasts (by Region)
4-8-1) Performance comparison – FY2024 Forecasts 34 (by Region) Unit:Billion of yen Foreign Change excluding Region FY2023 FY2024 Change FY2024 exchange foreign exchange Japan 735.7 760.0 ＋24.2 +3.3% - 760.0 ＋24.2 +3.3% North America 466.5 497.0 ＋30.4 +6.5% ＋1.9 495.1 ＋28.5 +6.1% Europe 239.5 214.0
Slide 35: Performance comparison – FY2024 Forecasts (by Business unit)
4-8-2) Performance comparison – FY2024 Forecasts 35 (by Business unit) Unit:Billion of yen Foreign Change excluding Business unit FY2023 FY2024 Change FY2024 exchange foreign exchange Steering 912.0 910.0 -2.0 -0.2% -5.0 915.0 ＋2.9 +0.3% Drivelines 432.3 454.0 ＋21.6 +5.0% -0.4 454.4 ＋22.0 +5.1% Auto
Slide 36: Profit trends
4-9) Profit trends 36 Equity ratio (%) 42.0 43.6 45.0 46.3 48.4 42.3 42.0 42.4 42.7 40.1 Left bar Business profit Right bar Profit attributable to owners of parent company Unit : Billion of yen 81.9 77.4 81.3 74.1 72.8 71.7 62.6 48.6 47.5 49.6 42.5 42.3 37.5 40.2 34.2 27.2 20.6 15.9 0.8 ▲3.7 FY2014
Slide 37: Note on forward-looking statements
37 【Note on forward-looking statements】 This report contains forward-looking statements pertaining to future plans and strategies. These forward-looking statements include risks, uncertainties and other factors, and actual results and business results may differ from those stated. JTEKT CORPORATION