Japan Aviation Electronics Industry, Limited · TSE:6807
Japan Aviation Electronics Industry — 1H FY2019 Earnings Presentation
32 slides from Japan Aviation Electronics Industry's earnings presentation, Oct 28, 2019
Slide 1: Financial Results for 1H of FY2019 and Prospects for FY2019
Financial Results for 1H of FY2019 and Prospects for FY2019 October 28, 2019 6807 Japan Aviation Electronics Industry, Ltd. Copyright ©2019. Japan Aviation Electronics Industry. Ltd
Slide 2: Agenda
Agenda Technology to Inspire Innovation I. Financial Results for 1H of FY2019 II. Prospects for FY2019 III. Initiatives for recovery Copyright ©2019. Japan Aviation Electronics Industry. Ltd 2
Slide 3: I. Financial Results for 1H of FY2019
Technology to Inspire Innovation I. Financial Results for 1H of FY2019 (From April 1, 2019 to September 30, 2019) ※ Total may not correspond to the total value of the items since amounts less than 100 million JPY are basically rounded off Copyright ©2019. Japan Aviation Electronics Industry. Ltd 3
Slide 4: Net Sales and Incomes
Net Sales and Incomes Technology to Inspire Innovation (JPY in 100 millions) Year/Year vs. 1H 1H FY2019 FY2018 FY2019 Change FY2019 Projections 1H FY2019/ Projections anounced 1H 2H 1H 1H FY2018 Apr, 2019 Net Sales 1,180 1,042 1,008 -172 85% -22 98% 1,030 Operating 94 79 72 -22 77% -5 93% 77 Income
Slide 5: Difference from Projection
Difference from Projection Technology to Inspire Innovation ▶ Sales: 100.8 billion yen, -2.2 billion yen Sales decrease in automotive market due to decline in car production affected by sluggish global automobile sales (-2.7 billion yen versus projection) Connectors for mobile devices exceeded p
Slide 6: Net Sales and Incomes (Quarterly)
Net Sales and Incomes Technology to Inspire Innovation ▶ Automotive and Industrial & Infrastructure market continued to be stagnant since 4Q of FY2018 ▶ Sales and profits increased in 2Q of FY2019 due to the emerging demands for new smartphone models Net Sales 618 604 562 556 (JPY in 100 millions) 4
Slide 7: Net Sales by Business Segment
Net Sales by Business Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year vs. 1H 2019 1H FY2019 FY2018 FY2019 Projections Change Projections 1H FY2019/ anounced 1H 2H 1H 1H FY2018 Apr, 2019 Component Ratio Connector 1,062 917 891 88% -172 84% -14 98% 905 UIS 43 48 39 4% -5 89% -
Slide 8: Connector Business
Connector Business Technology to Inspire Innovation Sales by Market Segment (JPY in 100 millions) Year/Year Sales: 84% (of 1H FY2018) ▶ Mobile Devices Change 1,062 84% • Products with built-in procured 1,000 components has significantly declined 891 • Sales to Chinese smartphones OEMs rose to the sa
Slide 9: UIS Business
UIS Business Technology to Inspire Innovation Sales by Market Segment (JPY in 100 millions) 50 Year/Year Change Sales: 89% (of 1H FY2018) 43 89％ ▶ Automotive (In-vehicle touch panel) 39 • Mass production of new film sensors shifted into full swing. Maintained the same level of sales as Automotive 23
Slide 10: Aerospace Business
Aerospace Business Technology to Inspire Innovation Sales by Market Segment (JPY in 100 millions) 80 Year/Year 75 Sales: 107% (of 1H FY2018) 70 Change 107% ▶ Industrial & Infrastructure 60 • Sales of sensors for oil drilling continued to be strong • Low sales of linear motors for Industrial & 52 sem
Slide 11: Operating Profit by Business Segment
Operating Profit by Business Segment Technology to Inspire Innovation (JPY in 100 millions) FY2018 FY2019 Year/Year Change 1H 2H 1H Connector 106 87 85 -21 10.0% 9.5% 9.5% UIS 3 1 -2 -5 8.0% 2.5% -5.0% Aerospace 7 11 10 3 1.6% 13.8% 13.6% Others -23 -20 -22 1 Total 94 79 72 -22 7.9% 7.6% 7.1% ※ Perc
Slide 12: II. Prospects for FY2019
Technology to Inspire Innovation II. Prospects for FY2019 (From April 1, 2019 to March 31, 2020) Copyright ©2019. Japan Aviation Electronics Industry. Ltd 12
Slide 13: Business Environment and Outlook
Business Environment and Outlook Technology to Inspire Innovation ▶ Business Environment Demand for smartphones is expected to remain strong despite of uncertainties in the 4Q Automotive and industrial & infrastructure markets is not expected to recover in the latter half ▶ Downward revision of
Slide 14: Prospects for FY2019
Prospects for FY2019 Technology to Inspire Innovation (JPY in 100 millions) Year/Year vs. FY2019 FY2019 FY2018 FY2019 Change Projections Projections 2H FY2019 announced 1H Projections Projections FY2019/FY2018 Apr, 2019 Net Sales 2,221 1,008 1,022 2,030 -191 91% -120 94% 2,150 Operating Income 173 7
Slide 15: Prospects for Net Sales by Business Segment
Prospects for Net Sales by Business Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year vs. FY2019 FY2019 FY2018 FY2019 Change Projections Projections 2H FY2019 announced 1H Projections Projections FY2019/FY2018 Apr, 2019 Connector 1,979 1,062 703 1,765 -214 89% -110 94% 1,875 U
Slide 16: Prospects of Sales by Market Segment
Prospects of Sales by Market Segment Technology to Inspire Innovation ▶ Mobile Devises: Demand expected to remain strong despite of uncertainties in the 4Q ▶ Automotive: Connectors to remain sluggish UIS to exceed the first half by the full-scale mass production of new film sensors ▶ Industrial & In
Slide 17: Capital Investment & Depreciation
Capital Investment & Depreciation Technology to Inspire Innovation ▶ Capital investment to be executed for new products mainly in the automotive and mobile device/5G sectors (JPY in 100 millions) 222 240 176 Capital Investments 112 126 114 110 86 89.3 Depreciation and others 91 100 93 111 108 107 19
Slide 18: III. Initiatives for recovery
III. Initiatives for recovery Copyright ©2019. Japan Aviation Electronics Industry. Ltd 18
Slide 19: Gain business opportunities through 5G
① Gain business opportunities through 5G Technology to Inspire Innovation ▶ Various devices will be utilized by 5G in future ▶ Secure business from smartphones and base stations as the first step Long Distance Core Network Vending Machine Automotive Data Center Stadium Data Network Public Facility C
Slide 20: Capturing demand of evolving smartphones
Capturing demand of evolving smartphones Technology to Inspire Innovation ▶ Changes in connectors for 5G Smartphone shipments forecast by communication method smartphones (million units) (Percentage) Additional interconnection points such 1,500 5G 60% as antennas and 5G modems 1,000 40% Coping w
Slide 21: Initiatives for 5G Base Stations
Initiatives for 5G Base Stations Technology to Inspire Innovation ▶ Base stations began to be installed in conjunction with the launch of commercial 5G services in Japan Our environmental-resistant optical connectors and interior coaxial connectors has been adopted by Japanese base station manuf
Slide 22: Focus on CASE driven Automotive Markets
② Focus on CASE driven Automotive Markets Technology to Inspire Innovation ▶ Car manufacturer, Tier1, IT-related companies, etc. are focusing efforts on CASE Accelerating product development and sales related to CASE Expanding products compliant with global standards • Develop connectors complia
Slide 23: Initiatives to Connected
Initiatives to Connected Technology to Inspire Innovation ▶ Technological changes and business C A opportunities triggered by Connected Antenna E S Sophistication of vehicle-mounted and external networks Communication • Adoption of ICT-related technologies such as Module Ethernet and USBs Gateway
Slide 24: Initiatives to ADAS and Safety System
Initiatives to ADAS and Safety System Technology to Inspire Innovation ▶ Connectors for in-vehicle C A cameras for ADAS and E S autonomous driving Sales of connectors for ADAS Cameras （JPY in 100 millions） Approximately 70% of FY2023 200 sales target has been secured Expanding product lineup and
Slide 25: Initiatives to EV
Initiatives to EV Technology to Inspire Innovation ▶ Enhancing connectors line-up C A Sales of Connectors for EV for EV and expanding global （JPY in 100 millions） E S sales Establish technology for high- 100 High-current, current connectors exceeding high-voltage connectors 400A Expand sales of
Slide 26: Conclusion
Conclusion Technology to Inspire Innovation Achieve FY2019 targets Implement initiatives toward the next fiscal year and solidifying the foundation for growth Accurately grasp business opportunities related to smartphones and base stations, in the midst of technological and market changes triggere
Slide 27: Technology to Inspire Innovation
Technology to Inspire Innovation
Slide 28: Cautionary Statement
Technology to Inspire Innovation <Cautionary Statement> The plans, strategies & results forecasts and targets for our company and our consolidated affiliates (hereinafter JAE) noted in these materials are forecasts and targets as of October 28, 2019, and include risks and uncertainties. The targets
Slide 29: [Reference] Net Sales by Market Segment
[Reference] Net Sales by Market Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year vs. 1H FY2019 FY2018 FY2019 1H FY2019 Change Projections Projections 1H FY2019/ anounced 1H 2H 1H 1H FY2018 Apr, 2019 Component Ratio Mobile Devices 582 466 477 47% -106 82% 22 105% 455 Automotiv
Slide 30: [Reference] Prospects for Net Sales by Market Segment
[Reference] Prospects for Net Sales by Market Segment Technology to Inspire Innovation (JPY in 100 millions) Year/Year vs. FY2019 FY2019 FY2018 FY2019 Change Projections Projections 2H FY2019 announced 1H FY2019/FY2018 Apr, 2019 Projections Projections Mobile Devices 1,049 477 463 940 -109 90% 0 940
Slide 31: [Reference] Connectors for ADAS
[Reference] Connectors for ADAS Technology to Inspire Innovation ▶ADAS (Advanced Driver Assistance System) The number of on-board cameras and sensors tends to increase due to the penetration of ADAS and automated driving Expand customers bases by utilizing prior results in European and Japanese
Slide 32: [Reference] Connectors for EV
[Reference] Connectors for EV Technology to Inspire Innovation ▶EV (Electric Vehicle) Products for EV Connector for Battery Service Plug Increase businesses based on Monitoring ECU results from service plug and battery monitoring ECU Development of 400A class high current technology High current
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