JTEKT Corporation · TSE:6473
JTEKT — Q3 FY2023 Earnings Presentation
29 slides from JTEKT's earnings presentation, Feb 7, 2024
Slide 1: Financial results for the Third Quarter of fiscal year ending March 2024
1 Financial results for the Third Quarter of fiscal year ending March 2024 February 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. Results ■ Despite continuing inflation, business profit increased with cost reduction activities, revenue increase mainly in automotive, a
Slide 3: Contents
Contents 3 １．Results for the Third Quarter of fiscal year ending March 2024 P４ ２．Forecasts for Fiscal Year ending March 2024 P９ ３. Appendix P１5 JTEKT CORPORATION
Slide 4: 1-1) FY2023-3Q Results – Consolidated performance
1-1) FY2023-3Q Results – Consolidated performance 4 ■ Revenue increased due to easing the impact of COVID-19, recovery from shortage of semiconductors, and favorable exchange rates. ■ Despite continuing inflation(materials, energy and labor cost etc.), business profit increased with steady cost redu
Slide 5: 1-2) FY2023-3Q Results – Business profit analysis
1-2) FY2023-3Q Results – Business profit analysis 5 ■ Despite continuing inflation and sales price down, profits increased due to sales recovery, favorable foreign exchange rates, and cost reduction activities. Unit：Billion of yen JTEKT CORPORATION
Slide 6: 1-3) FY2023-3Q Results – by Region
1-3) FY2023-3Q Results – by Region 6 ■ Sales increased in all regions except China. Profit increased significantly in Japan and North America due to favorable foreign exchange rates, and cost reduction activities. Revenue Business profit Unit : Billion of yen FY2022 3Q FY2023 3Q Unit : Billion of ye
Slide 7: 1-4) FY2023-3Q Results – by Business unit
1-4) FY2023-3Q Results – by Business unit 7 ■ Profit increased significantly 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 F
Slide 8: Contents
Contents 8 １．Results for the Third Quarter of fiscal year ending March 2024 P４ ２．Forecasts for Fiscal Year ending March 2024 P９ ３. Appendix P１5 JTEKT CORPORATION
Slide 9: 2-1) FY2023 Forecast – Consolidated performance
2-1) FY2023 Forecast – Consolidated performance 9 ■ Although the market environment is uncertain due to Jan. 1. the earthquake in Japan and declining automobile production, we maintain our disclosed forecasts. ■ While minimizing the impact of the production decline, we will ensure achievement of the
Slide 10: 2-2) FY2023 Forecast – Business profit analysis
2-2) FY2023 Forecast – Business profit analysis 10 ■ Despite the impact of inflation and sales price down, profits increased due to sales recovery, favorable foreign exchange rates, and cost reduction activities. ■ While securing increased profits, we will keep strategic investments steadily in the
Slide 11: 2-3) FY2023 Forecast – by Region
2-3) FY2023 Forecast – by Region 11 ■ Profit increased in Japan due to sales recovery and accelerating cost reduction. Although profits in China and Europe declined due to severe market environment. Revenue Business profit Unit : Billion of yen FY2022 FY2023 Unit : Billion of yen (Ratio to revenue)
Slide 12: 2-4) FY2023 Forecast – by Business unit
2-4) FY2023 Forecast – by Business unit 12 ■ Revenue and profit increased in the automotive business, mainly in Japan. Revenue Business profit Unit : Billion of yen FY2022 FY2023 Unit : Billion of yen (Ratio to revenue) FY2022 FY2023 866.0 (3.6%) 806.2 31.0 (2.8%) 22.6 (10.1%) (4.4%) (4.8%) (8.9%) 1
Slide 13: 2-5) Return to shareholders
2-5) Return to shareholders 13 ■ The dividend forecast for FY2023 remains unchanged at 36 yen per year. (year-end 20 yen) ■ Under the policy to pay stable dividends in long-term, we will maintain the dividend payout ratio of 30% or more. Also, we will maintain DOE of 1% or more even under bad busine
Slide 14: Contents
Contents 14 １．Results for the Third Quarter of fiscal year ending March 2024 P４ ２．Forecasts for Fiscal Year ending March 2024 P９ ３. Appendix P１5 JTEKT CORPORATION
Slide 15: 3-1-1) Management indicators – Cash flow, capital efficiency
3-1-1) Management indicators 15 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 : Billion of yen 6.7 39.2 41.7 26.1 68.9 5.4 129.8 5.7 -29.4 5.3 91.7 3.6 3.8 78.2 62.3 67.0 3.5 1
Slide 16: 3-1-2) Management indicators
3-1-2) Management indicators 16 Capital expenditures Depreciation & amortization R&D expenses Upper row Jan-Mar Unit : Billion of yen Unit : Billion of yen Ratio to revenue Unit : Billion of yen Lower row Apr-Dec 4.6% 4.2% 3.3% 3.1% 3.0% 75.0 73.0 69.4 67.0 66.9 64.6 63.0 64.7 21.1 62.3 16.9 13.7 17
Slide 17: 3-1-3) Management indicators
3-1-3) Management indicators 17 Inventories Interest-bearing debt / Cash reserves Inventory turnover 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 0.20 259.5 328.1 0.12 247.5 229.0 286.2 261.7
Slide 18: 3-2-1) Financial statements
3-2-1) Financial statements 18 Assets Liabilities and equity Unit : Billion of yen Unit : Billion of yen FY2023 Liabilities FY2023 Assets FY2022 Change FY2022 Change 3Q and equity 3Q Cash and cash Trade and other 123.8 163.2 ＋39.3 346.5 369.5 ＋22.9 equivalents payables Trade and other Interest-beari
Slide 19: 3-2-2) Financial statements
3-2-2) Financial statements 19 Consolidated Statement of Profit or Loss Consolidated Statement of Cash Flows Unit : Billion of yen Unit : Billion of yen FY2022 FY2023 FY2022 FY2023 Change Change 3Q 3Q 3Q 3Q Cash flows from Revenue 1,224.9 1,411.8 ＋186.9 operationg activities 62.7 129.8 ＋67.0 Cash fl
Slide 20: 3-3-1) Performance comparison – FY2023-3Q Results (by Region)
3-3-1) Performance comparison – FY2023-3Q Results 20 (by Region) Unit:Billion of yen FY2022 FY2023 Foreign FY2023 Change excluding Region change 3Q 3Q exchange 3Q foreign exchange Japan 462.0 564.6 +102.6 +22.2% - 564.6 +102.6 +22.2% North America 286.8 339.4 +52.5 +18.3% ＋18.7 320.6 +33.8 +11.8% Eu
Slide 21: 3-3-2) Performance comparison – FY2023-3Q Results (by Business unit)
3-3-2) Performance comparison – FY2023-3Q Results 21 (by Business unit) Unit:Billion of yen FY2022 FY2023 Foreign FY2023 Change excluding Business unit change 3Q 3Q exchange 3Q foreign exchange Steering 585.5 674.9 89.4 +15.3% ＋23.7 651.2 ＋65.7 +11.2% Drivelines 243.9 327.6 83.6 +34.3% ＋5.5 322.0 ＋7
Slide 22: 3-4-1) Quarterly result trend – by Region
3-4-1) Quarterly result trend – by Region 22 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 23: 3-4-2) Quarterly result trend – by Business unit
3-4-2) Quarterly result trend – by Business unit 23 単位：億円 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 -1.9% 205.9 4.8 2.4% 202.5 5.6 2.8% 220.7 15.5 7.0% Drivelines 81.9 0.8 1.0%
Slide 24: 3-5-1) Business profit analysis – Steering Systems / Drivelines
3-5-1) Business profit analysis – Steering Systems / Drivelines 24 Unit : Billion of yen Steering Systems Unit : Billion of yen Drivelines JTEKT CORPORATION
Slide 25: 3-5-2) Business profit analysis – Industrial & Bearings / Machine tools
3-5-2) Business profit analysis – Industrial & Bearings / Machine tools 25 Unit : Billion of yen Industrial & Bearings Unit : Billion of yen Machine tools *Others excluded JTEKT CORPORATION
Slide 26: 3-6-1) Performance comparison – FY2023 Forecasts (by Region)
3-6-1) Performance comparison – FY2023 Forecasts 26 (by Region) Unit:Billion of yen Foreign Change excluding Region FY2022 FY2023 Change FY2023 exchange foreign exchange Japan 638.4 725.0 ＋86.5 +13.6% - 725.0 ＋86.5 +13.6% North America 400.1 456.0 ＋55.8 +14.0% ＋23.0 433.0 ＋32.8 +8.2% Europe 196.2 21
Slide 27: 3-6-2) Performance comparison – FY2023 Forecasts (by Business unit)
3-6-2) Performance comparison – FY2023 Forecasts 27 (by Business unit) Unit:Billion of yen Foreign Change excluding Business unit FY2022 FY2023 Change FY2023 exchange foreign exchange Steering 806.2 866.0 ＋59.7 +7.4% ＋26.0 840.0 ＋33.7 +4.2% Drivelines 336.3 408.0 ＋71.6 +21.3% ＋8.0 400.0 ＋63.6 +18.9%
Slide 28: 3-7) Profit trends
3-7) Profit trends 28 Equity ratio(%) 42.0 43.6 45.0 46.3 47.5 42.3 42.0 42.4 42.7 40.1 Left bar Business profit Unit : Billion of yen Right bar Profit attributable to owners of parent company 81.9 81.3 80.0 77.4 74.1 71.7 62.6 48.6 47.5 49.6 42.5 42.3 37.5 40.0 34.2 27.2 20.6 15.9 0.8 -3.7 FY2014 F
Slide 29: Thank You
29 Thank You J-Nyan TEK-NYAN 【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