JTEKT Corporation · TSE:6473
JTEKT — FY2022 Earnings Presentation
54 slides from JTEKT's earnings presentation, May 16, 2023
Slide 1: Financial results of Fiscal Year ended March 2023
1 Financial results of Fiscal Year ended March 2023 May 16, 2023 JTEKT CORPORATION
Slide 2: Overview of Financial Results
Overview of Financial Results 2 ✔ Revenue increased YoY due to the easing the impact of COVID-19, recovery Results from the shortage of semiconductors, and favorable foreign exchange rate. ✔ Despite negative impacts from cost inflation of materials, logistics, and energy, business profit increased w
Slide 3: Contents
Contents 3 １．Results of the FY ended March 2023 P4 ２．Forecast of the FY ending March 2024 P9 ３．Approach to achieve the mid-term management plan P15 ４．Appendix P29 JTEKT CORPORATION
Slide 4: FY2022 results - Consolidated Performance
1-1）FY2022 results - Consolidated Performance 4 ■ Revenue increased YoY due to the easing the impact of COVID-19, recovery from the shortage of semiconductors, and favorable foreign exchange rate. ■ Despite negative impacts from cost inflation of materials, logistics, and energy, business profit inc
Slide 5: FY2022 Results - Business profit Analysis
1-2）FY2022 Results - Business profit Analysis 5 Unit：Billion of yen JTEKT CORPORATION
Slide 6: FY2022 Results by Region
1-3）FY2022 Results by Region 6 ■ Business profit increased in Japan and North America due to sales increase, cost reduction and sales price improvement activities. (NA returned to profitability) Revenue Business profit Unit: Billion of yen Unit: Billion of yen (Ratio to revenue) FY2021 FY2022 FY2021
Slide 7: FY2022 Results by Business unit
1-4）FY2022 Results by Business unit 7 ■ Business profit increased in all businesses units especially in Steering due to sales increase, cost reductions, and sales price improvement activities. Revenue Business profit Unit: Billion of yen Unit: Billion of yen (Ratio to revenue) FY2021 FY2022 FY2021 F
Slide 8: Contents
Contents 8 １．Results of the FY ended March 2023 P4 ２．Forecast of the FY ending March 2024 P9 ３．Approach to achieve the mid-term management plan P15 ４．Appendix P29 JTEKT CORPORATION
Slide 9: FY2023 Forecasts - Consolidated Performance
2-1）FY2023 Forecasts - Consolidated Performance 9 ■ Market condition is uncertain due to the decline in demand mainly in Japan and China, further inflation risk, and unfavorable exchange rate trend. ■ Despite various risks, we would like to increase profit by promoting cost reductions and sales pric
Slide 10: FY2023 Forecasts - Business profit Analysis
2-2）FY2023 Forecasts - Business profit Analysis 10 Unit：Billion of yen JTEKT CORPORATION
Slide 11: FY2023 Forecasts by Region
2-3）FY2023 Forecasts by Region 11 ■ Business profit increased except for China due to sales increase and cost reduction, however Europe remained deficit despite of promoting restructuring activities. Revenue Business profit Unit: Billion of yen FY2022 FY2023 Unit: Billion of yen (Ratio to revenue) F
Slide 12: FY2023 Forecasts by Business unit
2-4）FY2023 Forecasts by Business unit 12 ■ Sales and business profit increased in all businesses units due to cost reductions and sales price improvement activities. Revenue Business profit Unit: Billion of yen FY2022 FY2023 Unit: Billion of yen (Ratio to revenue) FY2022 FY2023 838.0 806.2 (3.1%) (2
Slide 13: Return to Shareholders
2-5）Return to Shareholders 13 ■ 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 business situation. 685.2 Payout ratio Dividend payout ratio (%) 55.4 29.6 30.3 29.7 29.8 30.0 31.
Slide 14: Contents
Contents 14 １．Results of the FY ended March 2023 P4 ２．Forecast of the FY ending March 2024 P9 ３．Approach to achieve the mid-term management plan P15 ４．Appendix P29 JTEKT CORPORATION
Slide 15: Actions to achieve the mid-term management plan
3. Actions to achieve the mid-term management plan 15 The 10 years up to 2030 will be dividend into three period, the first mid-term plan period will be “Three-Year Plan to enhancing our corporate structure”, and set a target of break- even point sales ratio (compared to revenue in FY2019) of 80%
Slide 16: Progress of mid-term management plan
3-1 ) Progress of mid-term management plan 16 Even after the collapse of the 2008 financial crisis, awareness of fixed cost reduction is weak. Carry out reforms with a focus on the break-even point sales ratio. Performance trends after the merger Unit: bullion yen Ratio to revenue 20,000 2,000 1
Slide 17: Progress of mid-term management plan
3-1 ) Progress of mid-term management plan 17 Get out of the deficit structure and practice tree-ring management. Steadily achieve the target of strengthening profitability in the 1st mid-term plan and aim to increase business profit. Financial stracture evaluation after business profit FY2019 n
Slide 18: Progress of mid-term management plan
3-1 ) Progress of mid-term management plan 18 The key point to achieve our target is profitability improvement in Automotive business unit that are going to increase sales volume Business profit Revenue margin Revenue Unit: bullion yen Steering Unit: bullion yen Driveline ( Forecast) Ratio to reve
Slide 19: Strengthening Competitiveness
3-2 ) Strengthening Competitiveness 19 Implement next generation Electric Power Steering(EPS) that review design and manufacturing process with simple, slime concept. Implement next Promote labor saving standard production line • Global expansion for the next generation of EPS • Reduce in-house co
Slide 20: Strengthening Competitiveness - Automotive profitability
3-2 ) Strengthening Competitiveness 20 Automotive business unit :profitability improvement eAxle parts supplier with small,light,high efficiency JTEKT product in BEV market Aim to become to contribute safety,reliable,confortable autonomous driving as No.1 Steering maker eAxle parts supplier Auto
Slide 21: Strengthening Competitiveness - Growth Market
3-2 ) Strengthening Competitiveness 21 Automotive business unit : Growth Market Aim to be No.1 in growing markets by introducing high-value-added products that leverage synergies among businesses units and groups Electrification Robot • Contributing to the improvement of • Contributing to the rapi
Slide 22: Strengthening Competitiveness - Bearing business unit
3-2 ) Strengthening Competitiveness 22 Bearing business unit Achieve overwhelming competitiveness and become No.1 in the grinding field by leveraging the collective strength of the Group Contributing to TOYOTA's electrification efforts with production facilities as a member of the TOYOTA Group C
Slide 23: Strengthening Competitiveness - Aftermarket business
3-2 ) Strengthening Competitiveness 23 Aftermarket business Unit Make the Aftermarket Business Unit indispensable to customers Grow into a core business by contributing to the realization of a recycling- oriented society, supporting customer choices, and expanding sales and profits Growth Busine
Slide 24: Strengthen management foundation
3-3）Strengthen management foundation 24 Structural reforms in EU and North America Steadily Improvement of management structure in both North America and Europe Further structural reforms will be carried out in Europe, where losses are continuing due to a lack of recovery in production numbers N
Slide 25: Strengthening Group Governance
3-3）Strengthen management foundation 25 Strengthening Group Governance Shift from “Surgical treatment” to “Medical treatment” Improving capital efficiency to increase corporate value Capital Efficiency Consolidate Bases • Strengthen governance in terms of both • Reduction of 10 domestic companie
Slide 26: Development of HR and structures
3-4 ) Development of HR and structures 26 Penetration of "JTEKT's Basic Philosophy" through Steady Activities (Chinese traditional Treatment) Toward a free and open-minded company where people can state what they want and do what they want Penetration of the One JTEKT basic philosophy • We foste
Slide 27: Development of HR and structures
3-4 ) Development of HR and structures 27 Visualize the human resource portfolio and connect it to human resource strategy and development. Promote the development of digital human resources in FY2023 Ideal human Digital human resource GAP Current human resource portfolio development resource po
Slide 28: Seeding for the future
3-5 ) Seeding for the future 28 Continuing to sow new seeds by crossing group seeds with No.1 & Only One as our keyword Promoting efforts to solve social issues such as declining birthrate and aging population, depopulation, and food shortages Cultivate new business Declining birthrate Depopulat
Slide 29: Contents
Contents 29 １．Results of the FY ended March 2023 P4 ２．Forecast of the FY ending March 2024 P9 ３．Approach to achieve the mid-term management plan P15 ４．Appendix P29 JTEKT CORPORATION
Slide 30: Management indicators
4-1）Management indicators 30 Cash Flow statement ROE / ROA Upper row Cash flow from operating activities FCF ROE ROA Lower row Cash flow from investing activities 28.9 39.2 41.7 26.1 5.3 -29.4 5.0 Unit: Billion of yen 104.1 3.5 91.7 78.2 67.0 2.4 62.3 2.1 0.2 1.5 ▲0.3 -25.2 0.1 -52.5 -52.1 ▲0.7 -75.
Slide 31: Management indicators
4-1）Management indicators 31 Capital expenditures Depreciation and amortization R&D expenses Unit: Billion of yen Unit: Billion of yen Ratio to revenue Unit: Billion of yen 4.6% 4.2% 3.3% 3.1% 3.1% 75.0 73.0 69.4 66.9 67.0 62.3 64.6 63.0 64.7 55.0 50.7 52.1 51.3 47.5 44.4 FY2019 FY2020 FY2021 FY2022
Slide 32: Management indicators
4-1）Management indicators 32 Inventories Interest bearing debt / Cash reserves Inventory turnover month Left bar Interest bearing debt Unit: Billion of yen NET DE ratio Right bar Cash reserves 1.6 1.8 1.7 1.7 Unit: Billion of yen 1.4 0.39 247.5 0.30 0.26 229.0 328.1 0.21 0.20 286.2 185.5 190.8 273.4
Slide 33: Financial statements
4-2）Financial statements 33 Assets Liabilities and equity Unit: Billion of yen Unit: Billion of yen Liabilities Assets FY2021 FY2022 Change FY2021 FY2022 Change and equity Cash and cash Trade and other equivalents 124.2 123.8 - 0.4 payables 317.6 346.5 +28.9 Trade and other Interest-Bearing receivab
Slide 34: Financial statements
4-2）Financial statements 34 Consolidated Statement of Profit or Loss Consolidated Statement of Cash Flows Unit: Billion of yen Unit: Billion of yen FY2021 FY2022 Change FY2021 FY2022 Change Cash flows from Revenue 1,428.4 1,678.1 +249.7 operating activities 67.0 78.2 +11.2 Cash flows from Business p
Slide 35: Performance Comparison – FY2022 Results (Region)
4-3）Performance Comparison – FY2022 Results 35 (Region) Unit: Billion of yen Foreign Change excluding Region FY2021 FY2022 Change exchange FY2022 foreign exchange Japan 582.4 638.4 ＋55.9 +9.6% - 638.4 ＋55.9 +9.6% North America 294.7 400.1 ＋105.3 +35.8% ＋68.5 331.5 ＋36.8 +12.5% Revenue Europe 160.3 1
Slide 36: Performance Comparison – FY2022 Results (Business unit)
4-3）Performance Comparison – FY2022 Results 36 (Business unit) Unit: Billion of yen Foreign Change excluding Business FY2021 FY2022 Change exchange FY2022 foreign exchange Steering 690.3 806.2 ＋115.9 +16.8% ＋72.7 733.5 ＋43.2 +6.3% Drivelines 275.0 336.3 ＋61.3 +22.3% ＋17.7 318.6 ＋43.5 +15.8% Automoti
Slide 37: Quarterly Result Trend
4-4）Quarterly Result Trend 37 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 6.7% 453.2 432.8 406.4 420.3 4.2% 3.6% 3.3% 2.6% 2.1% 2.7% 357.8 371.6 0.7% 344.1 319.9 30.5 17.0 15.4 14.0 8.9 9.7 6.5 2.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022
Slide 38: Quarterly Result Trend - Japan
4-4）Quarterly Result Trend - Japan 38 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 6.5% 6.0% 5.9% 176.3 2.8% 4.4% 168.1 2.2% 1.9% 164.0 159.8 0.9% 138.7 140.2 135.3 138.1 10.8 10.3 9.8 7.0 3.7 3.0 2.5 1.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021
Slide 39: Quarterly Result Trend - North America
4-4）Quarterly Result Trend - North America 39 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 113.2 9.7% 101.3 96.1 89.3 84.0 0.1% -0.6% -1.1% 10.9 73.3 71.9 65.4 -1.4% -1.2% -0.9% -3.6% 0.0 -0.4 -1.0 -0.9 -1.0 -0.8 -2.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 40: Quarterly Result Trend - Europe
4-4）Quarterly Result Trend - Europe 40 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 0.9% -4.4% -4.5% -4.7% 58.0 -7.1% -7.1% 49.6 -8.1% -8.2% 0.5 42.8 44.9 44.2 44.3 39.5 33.1 -1.8 -1.8 -2.2 -2.6 -3.1 -3.1 -3.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY
Slide 41: Quarterly Result Trend - China
4-4）Quarterly Result Trend - China 41 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 11.4% 11.6% 10.4% 9.3% 7.2% 7.9% 5.8% 54.0 52.3 2.5% 46.6 5.9 43.7 46.4 5.6 5.3 43.4 38.4 36.4 4.0 3.3 3.0 2.5 0.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022
Slide 42: Quarterly Result Trend - Asia & Others
4-4）Quarterly Result Trend - Asia & Others 42 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 10.8% 11.1% 10.4% 9.8% 69.0 68.2 69.1 10.0% 9.7% 8.7% 8.4% 62.6 6.9 7.1 56.5 6.7 53.8 6.6 47.6 45.4 5.3 5.1 4.7 3.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY202
Slide 43: Quarterly Result Trend - Automotive
4-4）Quarterly Result Trend - Automotive 43 (Steering + Drivelines) Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 6.6% 313.2 2.3% 2.2% 285.0 285.4 1.8% 1.5% 2.8% 276.5 258.9 20.8 237.3 245.5 ▲0.5% ▲1.0% 205.8 7.7 6.5 6.2 4.2 3.7 ▲0.9 ▲2.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 44: Quarterly Result Trend - Industrial & Bearings
4-4）Quarterly Result Trend - Industrial & Bearings 44 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 6.9% 6.1% 97.3 5.0% 4.1% 4.3% 88.2 89.5 5.1% 4.9% 82.9 4.0% 77.3 77.1 74.0 76.3 6.1 4.4 4.1 3.9 4.0 3.7 3.7 3.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q F
Slide 45: Quarterly Result Trend - Machine tools
4-4）Quarterly Result Trend - Machine tools 45 (Machine tools & others) Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 10.5% 8.9% 7.0% 6.9% 50.4 50.5 46.8 46.6 8.2% 5.3% 40.0 4.8% 35.1 36.2 4.9 1.7% 4.5 29.3 3.8 3.5 2.8 1.9 1.7 0.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3
Slide 46: Quarterly Result Trend - Steering
4-4）Quarterly Result Trend - Steering 46 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 220.7 7.0% 205.9 202.5 191.8 1.1% 1.8% 1.8% 2.4% 2.8% 179.6 177.0 170.6 15.5 148.1 ▲0.1% ▲1.9% 5.6 4.8 3.3 3.3 1.9 ▲0.1 ▲3.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q F
Slide 47: Quarterly Result Trend - Drivelines
4-4）Quarterly Result Trend - Drivelines 47 Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 5.1% 5.7% 3.5% 2.1% 92.4 0.6% 84.6 81.9 82.9 79.0 1.0% 0.6% ▲1.4% 5.2 66.7 65.9 4.3 57.7 2.3 1.6 0.8 0.4 0.5 ▲0.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2
Slide 48: Quarterly Result Trend - Machine tools
4-4）Quarterly Result Trend - Machine tools 48 (Others excluded) Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 12.3% 10.1% 8.9% 8.8% 50.0 49.8 46.0 9.5% 45.6 6.0% 6.8% 39.8 35.8 2.7% 34.7 5.5 29.2 5.0 4.3 4.3 3.5 2.4 2.0 0.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1
Slide 49: Business profit Analysis - Steering / Drivelines
4-5）Business profit Analysis - Steering / Drivelines 49 Unit: Billion of yen Steering Unit: Billion of yen Drivelines JTEKT CORPORATION
Slide 50: Business profit Analysis - Industrial & Bearings / Machine tools
4-5）Business profit Analysis - Industrial & Bearings 50 / Machine tools Unit: Billion of yen Industrial & Bearings Unit: Billion of yen ※ Others excluded Machine tools JTEKT CORPORATION
Slide 51: Performance Comparison - FY2023 Forecasts (Region)
4-6）Performance Comparison - FY2023 Forecasts 51 (Region) Unit: Billion of yen Foreign Change excluding Region FY2022 FY2023 Change exchange FY2023 foreign exchange Japan 638.4 730.0 ＋91.5 +14.3% - 730.0 ＋91.5 +14.3% North America 400.1 420.0 ＋19.8 +5.0% -32.4 452.4 ＋52.2 +13.1% Revenue Europe 196.2
Slide 52: Performance Comparison - FY2023 Forecasts (Business unit)
4-6）Performance Comparison - FY2023 Forecasts 52 (Business unit) Unit: Billion of yen Foreign Change excluding Business FY2022 FY2023 Change exchange FY2023 foreign exchange Steering 806.2 838.0 ＋31.7 +3.9% -47.8 885.8 ＋79.5 +9.9% Drivelines 336.3 394.5 ＋58.1 +17.3% -4.8 399.3 ＋62.9 +18.7% Automotiv
Slide 53: Profit Trends
4-7）Profit Trends 53 Equity ratio (%) 42.0 42.3 43.6 45.0 45.6 47.2 42.0 42.4 40.1 42.7 Left bar Business profit Right bar Profit attributable to owners of parent Unit: Billion of yen 81.9 77.4 81.3 75.0 74.1 71.7 62.6 48.6 47.5 49.6 42.5 42.3 37.5 34.2 35.0 27.2 20.6 15.9 0.8 ▲3.7 FY2014 FY2015 FY2
Slide 54: Note on forward-looking statements
54 [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