Fujikura Ltd · TSE:5803
Fujikura — FY2017 Earnings Presentation
24 slides from Fujikura's earnings presentation, May 11, 2018
Slide 1: Progress of 2020 Mid-term Business Plan: Overview of FY2017 and Actions in FY2018
Progress of 2020 Mid-term Business Plan Overview of FY2017 and Actions in FY2018 "Let’s transform ourselves, and bridge to the future! 2020 Mid-term" Fujikura Ltd. Masahiko Ito, President & CEO May 11, 2017
Slide 2: We will continue to maintain and strengthen earning power
We will continue to maintain and strengthen "earning power". Third year of 2020 Mid-term Important year for determining the success of the 2020 Mid-term Business Plan Goals to be achieved in FY2020 • Ratio of operating income to net sales: 7.0% or higher • Net sales: 900 billion yen • ROE: 10% or h
Slide 3: Contents
Contents 1. Review of FY2017 Financial Results and FY2018 Forecast 2. Progress of Key Measures of 2020 Business Plan 3. Research & Development Topics 4. Return to Shareholders 2
Slide 4: 1. Review of FY2017 Financial Results and FY2018 Forecast
1. Review of FY2017 Financial Results and FY2018 Forecast 3
Slide 5: Review of FY2017 Financial Results and FY2018 Forecast
(1) Review of FY2017 Financial Results and FY2018 Forecast （Unit：Yen in billion） FY2018 Forecasts FY2017 1H FY2018 FY2018 －FY2017 Results Results Forecast Forecast Change Net Sales 740.0 360.0 750.0 +10.0 Operating Income 34.3 17.0 39.0 +4.7 Ratio of Operating Income to 4.6 4.7 5.2 +0.6 Net（単位：億円） S
Slide 6: Review of FY2017 and Evaluation
(2) Review of FY2017 and Evaluation Evaluation of FY2017 FY2017 message We will continue to maintain and strengthen “earning power”. FY2017 is the true starting year! We attained operating income of 34.3 billion yen, a growth of 4.6% YoY, versus our plan at the start of the fiscal year for opera
Slide 7: FY2018 Forecast and Actions
(3) FY2018 Forecast and Actions Important year for determining the success of the 2020 Mid- term Business Plan! Maintain and strengthen “earning power” In 2H FY2018, aim to achieve ratio of operating income to net sales of 5.6% (80% of the goal in the 2020 Mid-term Business Plan) 1. Launch optic
Slide 8: 2. Progress of Key Measures of 2020 Business Plan
2. Progress of Key Measures of 2020 Business Plan 7
Slide 9: Progress of 2020 Mid-term Business Plan: Ratio of Operating Income to Net Sales
(1) Progress of 2020 Mid-term Business Plan: Ratio of Operating Income to Net Sales Ratio of Operating Income to Net Sales 8.0% Results/FY2018 Forecast 7.0% 7.0% 2020 Mid-term Business Plan 6.2% 6.2% 6.0% 5.4% 5.4% Adjusted: 5.8% 5.0% 4.7% 5.6% 4.4% 4.9% Forex rate Copper (JPY/USD) (JPY1,000/ton) 4.
Slide 10: Progress of 2020 Mid-term Business Plan: Key Measures
(2) Progress of 2020 Mid-term Business Plan: Key Measures As a company creating customer value, we will become a promising company with a future with “strong earning power” and “power of strong invention”! Developing Developing deeper ties with strategic customers 1. Accelerate developing ties wit
Slide 11: Developing Deeper Ties with Strategic Customers: SWR/WTC
(3) Developing Deeper Ties with Strategic Customers: SWR/WTC Accelerate developing tie with customers by providing strategic products (Spider Web Ribbon/Wrapping Tube Cable) Secure further growth and pave way for the future Upcoming opportunities for expansion in demand and become the defacto
Slide 12: Developing Deeper Ties with Strategic Customers: Electronics
(4) Developing Deeper Ties with Strategic Customers: Electronics Aim to achieve sound growth by strengthening bond of trust with strategic customers Continue to implement business operations with quality as its foundation In addition to converting fixed costs to variable costs to address fluct
Slide 13: Accelerate New Business Creation: Automotive
(5) Accelerate New Business Creation Strengthen development capabilities of products, technologies, and solutions for automotive market Companywide provision of products and technological solutions to customers • Establish automotive product R&D center in the Corporate R&D Unit • Establish Fujik
Slide 14: Accelerate New Business Creation: Healthcare and Fiber Laser
(6) Accelerate New Business Creation Business activities in the field of healthcare Core technologies are imaging and miniaturizing Example: Direct imaging technology in the body • Fujikura nearly covers all methods for invasive imaging in detailed areas inside the body ⇒ Recommend optimal solut
Slide 15: Open Innovation
(7) Open Innovation Currently expanding and deploying actions to achieve 2030 vision —Fujikura will solve the challenges of the future society in the four markets— Effective utilization of external resources Practice open innovation of "value co-creation type" → Start collaborations with two v
Slide 16: Management Reform: Governance Reform
(8) Management Reform: Governance Reform Completed transition to a company with an audit and supervisory committee in June 2017 Speed-up decision-making and strengthen audit and supervisory functions Reform of the board of directors: Narrow down discussion items, strengthen audit and superviso
Slide 17: Management Reform: ESG Initiatives
(9) Management Reform: ESG Initiatives Management policies on ESG (1) Make "Realization of sustainable society" and "Continuous success in our businesses" compatible. (President’s message in the CSR report) (2) Maximize corporate value through ESG (Management policy in the 2020 Mid-term Management
Slide 18: 3. Research & Development Topics
3. Research & Development Topics 17
Slide 19: Research & Development Topics: AI in Manufacturing Processes
(1) Research & Development Topics Successfully introduced AI into manufacturing processes, which was the most advanced achievement in this industry Establish AI platform for an inspection process in manufacturing (1) Fujikura’s proprietary AI learning method (2) Make AI model visible Promote "
Slide 20: Research & Development Topics: Single-mode Fiber Laser
(2) Research & Development Topics Develop single-mode fiber laser Contribute to the creation of new application fields of laser processing "Higher output power" and "More applications" are customer needs (1) Response to the growing demand for fiber lasers with high output power 5kW laser process
Slide 21: 4. Return to Shareholders
4. Return to Shareholders F Fujikura TT
Slide 22: Profit Return Basic Policy
(1) Profit Return Basic Policy Executing well-balanced profit allocation Concentrated investment to growing businesses (next growth) Improvement of financial strength (capital ratio, D/E ratio） Flexible share buyback Improvement of per-share profit Keep stable in dividend 2020 Mid-term basic
Slide 23: Becoming a promising company with strong earning power
As a company creating customer value, we will become a promising company with a future with "strong earning power" and "power of strong reinvention"! 22
Slide 24: Contact: Investor Relation Group
Special Notes: Statements in this presentation that relate to future results and events (including statements regarding Fujikura’s revenue and earnings guidance) are based on Fujikura’s current expectations. Actual results in future periods may differ materially from those currently expected because