Ushio Inc. · TSE:6925
Ushio — Q2 FY2016 Earnings Presentation
38 slides from Ushio's earnings presentation, Oct 31, 2016
Slide 1: 2nd Quarter FY2016 Financial Results
2nd Quarter FY2016 Financial Results USHIO INC. October 31, 2016 This report contains forward-looking statements, including earnings forecasts, which are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Please be advised that actual results
Slide 2: Main Points of Today's Presentation
Main Points of Today’s Presentation Net sales and earnings decreased year on year (YoY) for the first half of the fiscal year ending March 31, 2017 (FY2016). Outperformed 1H forecasts announced on July 29 Maintained full-year forecasts Revise the current Medium-term Management Plan (The new
Slide 3: Agenda
Agenda I. Financial Results for 1H FY2016 II. Future Prospects III. Imaging Business IV. Medium-term Management Plan V. Supplementary Information 3
Slide 4: Highlights of Financial Results for 1H FY2016
Highlights of Financial Results for 1H FY2016 Consolidated Net Sales down 6.9% year on year to ¥82.5 billion Consolidated Operating Income down 52.0% year on year to ¥3.1 billion - Outperformed 1H forecasts announced on July 29 - Sales: 82.5 billion yen（▲6.0 billion yen YoY, down 6.9%） A negative
Slide 5: Financial Results 1H FY2016
Financial Results 1H FY2016 YoY 1H Forecast FY2015 FY2016 % of （billion yen） （announced on 1H 1H July 29） achievement Changes ％ Sales 88.6 82.5 ▲6.0 ▲6.9 80.0 103.2 Operating Income 6.5 3.1 ▲3.4 ▲52.0 2.5 125.6 Operating Income 7.4 3.8 ▲3.6P - 3.1 - (%) Ordinary Income 7.5 3.0 ▲4.4 ▲59.3 2.5 123.3 P
Slide 6: Variation Analysis of Operating Income of 1H
Variation Analysis of Operating Income of 1H （billion yen） 65 6.5 ▲1.1 ▲11 Increase in Gross Profit of optical equipment (including medical) ＋ ¥ 0.8 billion ▲2.7 ▲27 Increase in SG&A except for Depreciation of Goodwill ▲ ¥ 0.3 billion Other ＋ ¥ 0.1 billion ＋6 ＋0.6 31 3.1 ▲2 ▲0.2 ▲ ¥ 3.4 billion FY15
Slide 7: Financial Results by Business Segments
Financial Results by Business Segments YoY FY2016 FY 2015 FY 2016 Forecast % of （billion yen） 1H 1H （announced on achievement Changes ％ July 29） Sales 47.9 45.2 ▲2.6 ▲5.5 95.0 47.7 Equipment Operating Income 0.5 ▲1.1 ▲1.6 - - - Operating 1.1 ▲2.5 ▲3.5P - - - Income(%) Sales 39.1 35.9 ▲3.2 ▲8.3 73.0
Slide 8: Equipment Business Segment Net Sales
Equipment Business Segment 《Net Sales》 《1H YoY》 Net Sales Sales 1H Overview (billion yen） Equipment Certain optical equipment performed ¥ 45.2billion well, supported by the positive impact of Business YoY ▲ ¥ 2.6 billion LCD investment in China. Sales of imaging equipment continued to decline Total
Slide 9: Light Sources Business Segment Net Sales
Light Sources Business Segment 《Net Sales》 《1H YoY》 Net Sales (billion yen） Sales 1H Overview Light Maintained market share despite 39.1 Sources ¥ 35.9 billion declining sales YoY across almost YoY ▲¥3.2billion all products due to the impact of the 35.9 Total ▲8.3% yen’s appreciation UV Lamps:▲6%.
Slide 10: Agenda
I. Financial Results for 1H FY2016 II. Future Prospects III. Imaging Business IV. Medium-term Management Plan V. Supplementary Information 10
Slide 11: 2H/Full-year FY2016 Forecast
2H/Full-year FY2016 Forecast Maintained full-year forecasts (A) (C) Full-year (B) 2H (billion yen) (C)-(B) plan 1H Forecast （announced on July 29） (A)-(B) (billion yen) Imaging equipment Sales 170.0 82.5 87.5 ＋5.0 (incl. effects of enhancement measures) ＋2.5 Operating Other ＋0.3 Income 9.0 3.1 5.9 ＋
Slide 12: Forecasts for 2H/Full-year FY2016 Net Sales by Sub-segment
Forecasts for 2H/Full-year FY2016 Net Sales by Sub-segment (A) (C) Full-year (B) 2H （billion yen） (C)-(B) 2H Forecast plan 1H Forecast （announced on July 29） (A)-(B) Imaging 65.0 31.0 34.0 +3.0 Sales volume of imaging equipment are projected to surpass plans, despite Optical 28.0 13.4 14.6 +1.2 co
Slide 13: Agenda
I. Financial Results for 1H FY2016 II. Future Prospects III. Imaging Business IV. Medium-term Management Plan V. Supplementary Information 13
Slide 14: Performance Enhancement Measures in Christie's Imaging Equipment Business
Performance Enhancement Measures in Christie’s Imaging Equipment Business (Excerpts from 1Q earnings presentation materials） ◆ Performance enhancement measures Full-year savings in SG&A expenses（YoY） Reduce fixed costs by implementing restructuring Reduce personnel costs (freeze new recruitment, r
Slide 15: Reference: Operating Income Trend at Christie for FY2016 (Forecast)
Reference: Operating Income Trend at Christie for FY2016 (Forecast) Through the execution of performance enhancement measures, performance is projected to improve as follows: Started performance enhancement measures Reduce personnel costs and operating expenses ( IT, advertising etc.) April May June
Slide 16: Business Environment for Cinema
Business Environment for Cinema ･Number of Cinema Screens Worldwide 157,000 ･Cinema Screen Ratio by Region Digitalization rate: 99％ (accumulated total） 200,000 Approx.20％ USA 150,000 （accumulated total） Canada 100,000 Latine America 50,000 China 0 APAC EMEA ※As of December 2015 ※As of December 2015
Slide 17: Changes in the Business Environment - Cinema
Changes in the Business Environment Covered at the 1Q Financial Results Presentation - Cinema Business Reasons for intensified sales competition: ・Rapid growth in sales of laser phosphor projectors due to reasons unique to China ・Fiercer calls for price discounts for lamp projectors ・Declining margi
Slide 18: Changes in the Business Environment - General Imaging
Changes in the Business Environment Covered at the 1Q Financial Results Presentation - General Imaging (＄M) Size of the display-related market LCD Reasons for intensified sales competition: Panel $3,000 ・Penetration of LED and LCD panels $2,500 LED $2,000 (Shift to finer pitch for panels) Panel $1,5
Slide 19: Christie's Solution Business
Christie’s Solution Business Christie Group provides one-stop solution to customers’ problems Projectors and peripheral devices Hardware Creation of imaging contents Content Software Software for projection mapping Maintenance service Lobby advertisement Service Advertising 19
Slide 20: Christie's Solution Business (Examples of Ice Projection Mapping)
Christie’s Solution Business (Examples of Ice Projection Mapping) Madison Square Garden, NY Pepsi Center, Denver Air Canada Center, Toronto 20
Slide 21: Agenda
I. Financial Results for 1H FY2016 II. Future Prospects III. Imaging Business IV. Medium-term Management Plan V. Supplementary Information 21
Slide 22: Medium-term Management Plan (Announced on May 11, 2016)
Medium-term Management Plan (Announced on May 11, 2016) Significant changes in the business environment surrounding the Company The yen’s continuing appreciation （Assumption：1US$=115 yen → Current level： 1US$=105 yen） Imaging equipment business: Intensified sales competition Current Medium-term Mana
Slide 23: Priority measures for the second half
Medium-term Management Plan (Announced on May 11, 2016) Priority measures for the second half ・Steady execution of performance enhancement measures ・Achieve full-year business targets （Net Sales 170.0 billion yen, Operation Income 9.0 billion yen) ＋ Continue current measures ・Pursue new growth oppor
Slide 24: Agenda
I. Financial Results for 1H FY2016 II. Future Prospects III. Imaging Business IV. Medium-term Management Plan V. Supplementary Information 24
Slide 25: Reference: Balance Sheet
Reference: Balance Sheet < A s s e t s > （billion yen） <Liabilities/Total Net Assets> （billion yen） Changes Changes 294.5 ▲12.9 294.5 ▲12.9 281.5 281.5 Notes and Accounts 17.7 ▲2.2 Payable 54.5 15.5 52.3 ▲2.1 Cash and Bank Deposits 31.6 32.5 ＋0.9 Other Current Liabilities Notes and Accounts ▲3.3 33.
Slide 26: Reference: Capital Expenditures, Depreciation and Amortization
Reference: Capital Expenditures, Depreciation and Amortization （billion yen） Capital Expenditures 12.5 Depreciation and 10.6 Amortization 10.0 9.7 8.9 7.7 7.8 8.0 7.5 7.1 7.0 6.7 6.4 5.9 5.0 5.0 2.5 0.0 FY11 FY12 FY13 FY14 FY15 FY16 plan FY2015 FY2016 YoY （billion yen） 1H 1H Changes ％ Capital Expend
Slide 27: Reference: R&D Expenses
Reference : R&D Expenses （billion yen） R&D Expenses （%） Ratio of R&D Expenses to Net Sales (%) 15.0 7.0 7.5 6.8 6.3 6.5 12.5 5.8 5.7 10.8 11.2 11.0 6.0 9.9 10.0 8.9 8.6 4.5 7.5 3.0 5.0 1.5 2.5 0.0 0.0 FY11 FY12 FY13 FY14 FY15 FY16 plan FY2015 FY2016 YoY （billion yen） 1H 1H Changes ％ R&D Expenses 5.3
Slide 28: Reference: Cash Flow
Reference : Cash Flow （billion yen） 10 8.4 8 Investing Activities 5.8 6 5.0 Free Cash Flow 4 2 0.1 0 -2 ▲ 0.8 ▲ 1.2 -4 -6 ▲ 5.3 Financing Activities -8 -10 ▲ 9.6 -12 Operating Activities FY15 FY16 Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the FY 56.9 at the Beginning of
Slide 29: Reference: Other Income and Expenses, Extraordinary Income and Losses
Reference: Other Income and Expenses, Extraordinary Income and Losses 《1H》 (billion yen) FY15 FY16 YoY (billion yen) FY15 FY16 YoY Extraordinary Other Income 1.2 1.2 +0.0 Income 1.6 0.8 ▲0.8 Interest income 0.3 0.3 ▲0.0 Gain on sales of 1.0 0.0 ▲1.0 non-current assets Dividend income 0.5 0.6 +0.0 Ga
Slide 30: Reference: Comparison to Previous Quarter
Reference: Comparison to Previous Quarter 《QoQ》 《QoQ》 《QoQ by business segment》 FY16 FY16 QoQ （billion yen） FY16 FY16 QoQ （billion yen） 1Q 2Q Changes ％ Segment 1Q 2Q Changes ％ Equipment Business Net Sales 39.9 42.5 +2.5 +6.4 Net Sales 21.2 24.0 +2.8 +13.6 Operating Operating 0.9 2.1 +1.1 +120.6 ▲0.7
Slide 31: Reference: Transition of Net Sales and Operating Income
Reference: Transition of Net Sales and Operating Income （Billions of yen） 100 Net Sales Operating Income ratio (%) 88.6 90.5 90 85.0 87.4 82.0 82.5 80 74.6 75.0 74.9 75.7 74.3 70.4 71.3 72.1 70 60 50 11.1 8.3 8.7 40 7.7 7.6 7.4 7.3 6.5 6.7 5.6 5.4 5.2 5.4 30 3.8 20 10 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H
Slide 32: Reference: Sales by Sub-segment (Quarter)
Reference: Sales by Sub-segment 《Quarter》 （billion yen） 47.4 45.9 50 44.5 41.1 0.8 42.5 0.6 39.9 45 0.5 0.2 1.0 0.6 0.7 1.0 Equipment 40 0.5 0.5 0.5 0.2 Business 18.5 35 21.2 26.6 20.1 26.2 15.4 24.5 21.2 24.0 (51.6.%) (56.2%) (57.1%) (55.2.%) (53.0.%) 15.6 (56.6.%) 16.2 15.4 30 25 7.5 8.0 Light 4.4
Slide 33: Reference: Sales by Sub-segment (Half-year)
Reference: Sales by Sub-segment 《Half-year》 （billion yen） 100 88.6 90.5 82.0 85.0 1.6 82.5 1.5 90 1.8 72.1 75.7 1.7 74.3 1.1 1.3 1.3 71.3 1.5 80 1.2 1.0 0.8 Equipment 1.5 1.6 1.5 0.6 Business 70 0.7 0.7 0.6 34.7 35.6 50.8 31.0 45.2 32.8 47.0 38.7 34.4 45.2 47.9 (56.1%) (54.9%) 60 25.9 (53.3%) (54.1%
Slide 34: Reference: Sales Ratio 1H
Reference: Sales Ratio《1H》 ［North America, Europe］ ・ Yen’s appreciation ・ Decline in sales, particularly Christie’s general imaging equipment ［Asia］ ・ Increase in LCD manufacturing equipment in China ・ Increase in sales of Christie’s DCP in Asia, particularly in China Others, 1.4% FY15 Japan, North
Slide 35: Reference: Purchase of Treasury Stock
Reference: Purchase of Treasury Stock Number of Amount Period Shares 2.0 1,138K May 12, 2015 ～ Results June 10, 2015 billion yen shares FY 2015 0.96 640K Feb. 1, 2016 ～ Results April 8, 2016 billion yen shares 0.86 670K May 12, 2016 ～ Results June 13, 2016 billion yen shares FY 2016 2.0 1,500K Augus
Slide 36: Reference: Features of USHIO Group's Light Sources
Reference: Features of USHIO Group’s Light Sources Lamp projectors Laser projectors Light Super-high Xenon lamp Laser phosphor RGB laser Sources pressure mercury lamp Lumen 2,000～5,000 8,000～35,000 5,000～15,000 20,000～60,000 （Multi-bulb models～ 30,000) Applica- ・General imaging ・Cinema ・Cinema(China
Slide 37: Reference: Glossary
Reference: Glossary DCP Digital Cinema Projector OA Office Automation OLED Organic Light Emitting Diode RGB Red Green Blue UV Ultraviolet VR Virtual Reality 37
Slide 38: Contact: Corporate Planning Dept. USHIO INC.
Contact: Corporate Planning Dept. USHIO INC. Email: [email protected] http://www.ushio.co.jp/global/ 38