Ushio Inc. · TSE:6925
Ushio — Q3 FY2018 Earnings Presentation
34 slides from Ushio's earnings presentation, Jan 31, 2019
Slide 1: 3rd Quarter FY2018 Financial Results
3rd Quarter FY2018 Financial Results USHIO INC. January 31, 2019 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: 3Q FY2018 Overview
3Q FY2018 Overview ■ Causal Analysis on Net Sales and Earnings Decreased YoY For 3Q FY2018 ■ Reasons and Measures on Financial Result Forecast Downward Revision for FY2018 ■ Introduction on Intensification Measurement of Shareholder Returns to Enhance Shareholder Value 2
Slide 3: Agenda
Agenda I. Financial Results for 3Q FY2018 II. Future Forecast III. Intensification Measurement of Shareholder Returns IV. Supplementary Information 3
Slide 4: Highlights of Financial Results
Highlights of Financial Results Net Sales down 5.7% year on year to ¥122.3 billion Operating Income down 19.5% year on year to ¥6.9 billion. Progress against full-year forecasts ：Net Sales 68.0%, Operating Income 55.3% Net Sales ：122.3 billion yen（▲7.4 billion yen YoY, ▲5.7%） 売上高 ：826億円（前年同期比▲26億円、▲
Slide 5: Summary of Financial Results
Summary of Financial Results YoY Original FY17 FY18 Progress （billion yen） FY2018 1Q-3Q 1Q-3Q Changes ％ Forecast （％） Net Sales 129.7 122.3 ▲7.4 ▲5.7 180.0 68.0 Operating Income 8.5 6.9 ▲1.6 ▲19.5 12.5 55.3 Operating Income (%) 6.6 5.6 ▲1.0p - 6.9 - Ordinary Income 10.8 9.4 ▲1.3 ▲12.3 14.0 67.8 Profi
Slide 6: Variation Analysis of Operating Income YoY
Variation Analysis of Operating Income YoY (billion yen) 8.5 ▲0.2 ▲1.0 FOREX ▲1.8 +1.4 6.9 Equipment Business （based on Gross Profit） Light Source Business Others （based on Gross Profit） ▲1.6 billion Operating Operating Income Income 3Q FY17 3Q FY18 Note: Figures for “Amelioration in Optical Equipme
Slide 7: Financial Results by Business Segments
Financial Results by Business Segments FY17 FY18 YoY （billion yen） 1Q-3Q 1Q-3Q Changes ％ Net Sales 72.8 68.6 ▲4.2 ▲5.8 Equipment Operating Income 0.4 ▲0.2 ▲0.6 - Operating Income（%） 0.6 ▲0.4 ▲1.0p - Net Sales 54.7 51.6 ▲3.1 ▲5.7 Light Sources Operating Income 7.9 6.7 ▲1.2 ▲15.8 Operating Income（%） 1
Slide 8: Business Environment
Business Environment Semiconductors- and electrical components-related markets ・Solid demand for various electronic devices due to advances in IoT, 5G, and automotive applications ・Solid demand for electronic devices for smaller and more sophisticated smartphones Electronics ・Demand related to M-SAP
Slide 9: Business Segment Overview (1)
Business Segment Overview (1) Equipment Business Business Overview（3Q） Net Sales (billion yen) YoY Imaging Equipment 72.8 ▲4.2 billion 68.6 ▲5.8% Cinema：▲10％ 1.2 ・Digital cinema projector (DCP) Sales volume decreased YoY 1.6 +0.4 billion ・Lower initial acceptance in high value-added RGB laser +33.1%
Slide 10: Business Segment Overview (2)
Business Segment Overview (2) Light Sources Business Business Overview（3Q） Net Sales (billion yen) YoY Discharge Lamp 54.7 UV lamps : ＋3％ ▲3.1 billion 51.6 ▲5.7% ・Sales decreased for OLED-related lamps due to the impact of investment restraint ・Sluggish operation for Middle-small panels and demand i
Slide 11: II. Future Forecast
I. Financial Results for 3Q FY2018 II. Future Forecast III. Intensification Measurement of Shareholder Returns IV. Supplementary Information 11
Slide 12: Full-Year Forecast Results Revision
Full-Year Forecast Results Revision Reasons on Financial Result Forecast Downward Revision for FY2018 a) Smart phone demand decreasing b) Lamp demand decreased due to conversion to solid-state light sources c) Lower initial acceptance of new products matching market requirement d) Investment interes
Slide 13: Net Sales Revision by Sub-segments
Net Sales Revision by Sub-segments （billion yen） Previous (a) Revised (b) Changes (b)-(a) Imaging equipment 60.0 55.5 ▲4.5 Equip- Optical equipment 37.5 35.0 ▲2.5 ment Illumination and others 1.5 2.0 ＋0.5 Sub-total 99.0 92.5 ▲6.5 Net Discharge lamps 64.5 58.0 ▲6.5 Sales Light Sources Halogen lamps 1
Slide 14: Reasons for Deterioration and Enhancement Measures
Reasons for Deterioration and Enhancement Measures Light Sources Equipment Lamps for Imaging Optical UV Lamps Data Projector Equipment Equipment Demand Accelerated Slowdown New product not Reas conversion to Demand slowdown for FPD meeting market on solid-state light for M-SAP （OLED and Middle- requ
Slide 15: III. Intensification Measurement of Shareholder Returns
I. Financial Results for 3Q FY2018 II. Future Forecast III. Intensification Measurement of Shareholder Returns IV. Supplementary Information 15
Slide 16: Intensification of Shareholder Returns to enhance shareholder value
Intensification of Shareholder Returns to enhance shareholder value Ushio announced the following measurement to enhance shareholder value through strengthening shareholder returns and improving capital efficiency. Ushio will continuously conduct shareholder returns and improve capital efficiency. P
Slide 17: Shareholder Return Transition
Shareholder Return Transition （million yen） Fiscal Year End March 2014 March 2015 March 2016 March 2017 March 2018 March 2019(Planned) Total amount of Share buyback (Left axis) Total Return Ratio (Right axis) dividends (Left axis) (billion yen) March 2019 Fiscal Year End March 2014 March 2015 March
Slide 18: IV. Supplementary Information
I. Financial Results for 3Q FY2018 II. Future Forecast III. Intensification Measurement of Shareholder Returns IV. Supplementary Information 18
Slide 19: Reference: Summary of Quarterly Financial Results
Reference: Summary of Quarterly Financial Results FY18 FY17 FY18 FY18 (billion yen) FY17 FY18 3Q – 3Q 3Q - 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Changes ％ Changes ％ Net Sales 41.7 43.4 44.5 43.6 39.9 42.6 39.7 ▲4.7 ▲10.8 ▲2.8 ▲6.7 Operating Income 2.8 2.8 2.9 1.5 2.5 2.8 1.5 ▲1.3 ▲47.2 ▲1.2 ▲44.8 Operating Income
Slide 20: Reference: Quarterly Financial Results by business segments
Reference: Summary of Quarterly Financial Results by business segments FY18 FY17 FY18 FY18 (billion yen) FY17 FY18 3Q - 3Q 3Q - 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q changes ％ changes ％ Equipment Net Sales 22.5 24.1 26.1 24.7 21.8 24.8 21.9 ▲4.1 ▲16.0 ▲2.8 ▲11.5 Operating Income 0.0 ▲0.0 0.4 ▲0.9 0.0 0.1 ▲0.4 ▲0.
Slide 21: Reference: Quarterly Sales by Sub-segment
Reference: Quarterly Sales by Sub-segment (billion yen) 41.7 43.4 44.5 43.6 0.6 0.6 42.6 0.8 0.2 1.2 39.9 0.6 39.7 0.6 0.5 0.3 0.7 0.8 0.7 0.3 0.4 Equipment Business 15.2 17.5 14.5 14.1 15.4 24.1 26.1 24.7 13.7 21.8 22.5 (55.6.%) (58.7.%) 24.8 15.0 21.9 (56.7%) (54.6%) (58.2%) (54.1%) (55.2%) 6.8 8.
Slide 22: Reference: Quarterly Other Income and Expenses
Reference: Quarterly Other Income and Expenses FY18 FY17 FY18 FY18 (billion yen) FY17 FY18 3Q – 3Q 3Q - 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q changes ％ changes ％ Other Income 1.3 0.5 1.3 0.4 1.5 0.6 1.1 ▲0.1 ▲13.4 +0.4 +76.9 Interest income 0.2 0.3 0.2 0.4 0.4 0.4 0.4 +0.1 +58.6 +0.0 +2.6 Dividend income 0.6 0.0
Slide 23: Reference: Quarterly Extraordinary Income and Losses
Reference: Quarterly Extraordinary Income and Losses FY18 FY17 FY18 FY18 (billion yen) FY17 FY18 3Q – 3Q 3Q - 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q changes ％ changes ％ Extraordinary Income 6.2 0.0 1.0 5.2 0.0 0.0 1.7 +0.7 +70.3 +1.7 - 0.0 Gain on sales of non-current assets 0.1 0.0 0.0 0.2 0.0 0.0 +0.0 +695.6 +0.
Slide 24: Reference: Sales Ratio by region
Reference: Sales Ratio by region Others 1.0% FY17_3Q Japan North America Asia Europe Net Sales ¥129.7 20.3% 28.0% 40.4% 10.3% billion FY18_3Q Japan North America Asia Europe Net Sales 31.4% ¥122.3 22.4% 37.5% 7.8% billion Others 0.9% 24
Slide 25: Reference: R&D Expenses
Reference: R&D Expenses R&D Expenses (billion yen) Ratio of R&D Expenses to Net Sales (%) 6.8 6.3 6.2 5.8 5.7 5.7 10.8 11.2 10.6 10.5 8.9 9.8 FY13 FY14 FY15 FY16 FY17 FY18 計画 Plan FY17 FY18 YoY (billion yen) 3Q 3Q Changes ％ R&D Expenses 7.7 7.7 ▲0 ▲0.6 Ratio of R&D Expenses to Net Sales (%) 6.0 6.3
Slide 26: Reference: Half Year Transition
Reference: Half Year Transition 《Other Income and Expenses ・ Extraordinary Income and Losses》 FY18 FY17 FY18 FY17 (billion yen) FY17 FY18 1Q-3Q – 1Q-3Q (billion yen) FY17 FY18 1Q-3Q – 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q Changes % Changes % Other Income 3.1 3.3 +0.1 +5.2 Extraordinary Income 7.2 1.8 ▲5.4 ▲
Slide 27: Reference: Balance Sheet
Reference: Balance Sheet ◆Assets (billion yen) ◆Liabilities/Total Net Assets (billion yen) Changes Changes 305.3 307.7 +2.4 +2.4 305.3 307.7 Notes and Accounts ▲1.0 Payable 21.4 20.3 74.7 73.4 ▲1.3 Cash and Bank Deposits +10.3 Other Current 32.7 43.0 Liabilities, Long-term ▲7.8 Liabilities ▲4.4 Mark
Slide 28: Reference: Capital Expenditures, Depreciation and Amortization
Reference: Capital Expenditures, Depreciation and Amortization. (billion yen) Capital Expenditures Depreciation and Amortization 10.6 10.2 9.7 7.8 6.7 7.0 6.4 6.5 6.5 5.9 5.0 5.0 FY13 FY14 FY15 FY16 FY17 FY18 計画 Plan FY17 FY18 YoY (billion yen) 3Q 3Q Changes ％ Capital Expenditures 3.3 4.7 +1.4 +44.1
Slide 29: Reference: Cash Flow
Reference: Cash Flow (billion yen) 15.0 13.1 11.7 11.0 7.0 Operating Activities 3.5 3.0 1.4 Financing Activities -1.0 ▲1.7 ▲ 1.2 -5.0 3.0 Free Cash Flow ▲6.5 -9.0 Investing Activities FY17_3Q FY18_3Q Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the FY 50.9 at the Beginning
Slide 30: Press Release: Ushio and Kobe University bacteria reduction with UV
Press Release：Ushio Inc. and Kobe University have achieved the world’s first successful reduction of bacteria using ultraviolet irradiation that is harmless to normal human skin Ushio Inc. (hereinafter “USHIO”) has succeeded, for the first time in the world, in killing bacteria by directly irradiati
Slide 31: Press Release: New LUMINITY Series saves the Xenon Heyday
Press Release：New LUMINITY Series saves the Xenon Heyday USHIO, one of the largest and most trusted names in the manufacturing of high-pressure xenon lamps today, proudly introduces the LUMINITY series. LUMINITY is the result of a substantial R&D effort that extends the lifespan of numerous xenon la
Slide 32: Reference: Features of USHIO Group's Light Sources
Reference: Features of USHIO Group’s Light Sources Lamp Projector Laser Projector Super Light RGB Laser High-Pressure Xenon Lamp LaPH RGB Laser Source (CP-RGB Series) UV Lamp Christie’s Line up Non Dolby Projector Variety of Projectors CP Series Crimson Series CP4325-RGB* (CP42LH EWD /6P) (3LCD/1DLP
Slide 33: Glossary
Glossary DCP Digital Cinema Projector EUV Extreme Ultraviolet Radiation FPD Flat Panel Display IoT Internet of Things M-SAP Modified Semi Additive Process OA Office Automation OLED Organic Light Emitting Diode RGB Red Green Blue UV Ultraviolet 5G 5 th Generation 33
Slide 34: Contact
Contact: Corporate Planning Dept., USHIO INC. Email: [email protected] http://www.ushio.co.jp/en/