JTEKT Corporation · TSE:6473
JTEKT — FY2021 Earnings Presentation
52 slides from JTEKT's earnings presentation, May 18, 2022
Slide 1: IR Presentation for Fiscal Year Ending March 2022
IR Presentation for Fiscal Year Ending March 2022 May 18, 2022 JTEKT Corporation 1 JTEKT CORPORATION
Slide 2: Financial points
Financial points Achievements Revenue increased by +14.6% year-on-year to 1,428.4 billion yen due to the recovery of automobile production, etc., despite the continued coronavirus and shortage of semiconductors. Net income increased by +19.8 billion yen year-on-year to 20.6 billion yen due to the re
Slide 3: Agenda
Ⅰ. Settlement 1. Results for the year ended March 2022 2. Forecast for the fiscal year ending March 2023 Ⅱ. Approach to achieve the mid-term management plan １．FY2021 Mid-term management plan ２．FY2021 Review ３．FY2022 Priority efforts Appendix 3 JTEKT CORPORATION
Slide 4: 1-1) Consolidated Performance
1-1 ) Consolidated Performance ■ Sales revenue increased in all regions and businesses due to recovery of the market environment and other factors. ■ Business profit decreased in some regions and businesses due to the significant impact of changes in the external environment, such as increased mater
Slide 5: 1-2) Business Profit Analysis
1-2 ) Business Profit Analysis Unit：billions of yen Purchase price BS optimization – 1.7 +33.6 improvement +7.5 Changes in sales Productivity composition - 1.4 improvement +6.0 Others – 0.6 Impact of production cuts -30.0 Including +13.5 +42.3 -11.4 -3.7 -6.9 -5.0 +6.3 Labor costs – 6.2 +15.9 Materi
Slide 6: 1-3) Results by Region
1-3 ) Results by Region Revenue Business profit Unit:billions of yen [ Increase / decrease rate ] FY20 FY21 Unit: [ Ratio to sales revenue ] FY20 FY21 currency billions of yen currency Increase/ Increase/decrease difference decrease ＋ 44.7 difference [ + 8.3%] Japan - ＋44.7 ＋8.3% Japan 4.7 ＋15.3 Eur
Slide 7: 1-4) Results by Business Segment
1-4 ) Results by Business Segment Sales revenue Business profit Unit: FY20 FY21 Unit:billions of yen [Ratio to sales revenue] FY20 FY21 [ Increase / decrease rate ] billions of yen currency Increase/ currency Increase/decrease difference decrease ＋ 82.4 [ ＋ 13.6%] Steering 33.1 ＋49.2 ＋8.1% Steering
Slide 8: Agenda
Ⅰ. Settlement 1. Results for the year ended March 2022 2. Forecast for the fiscal year ending March 2023 Ⅱ. Approach to achieve the mid-term management plan １．FY2021 Mid-term management plan ２．FY2021 Review ３．FY2022 Priority efforts Appendix 8 JTEKT CORPORATION
Slide 9: 2-1) Forecasts for Fiscal Year Ending March 2023
2-1 ) Forecasts for Fiscal Year Ending March 2023 ■The outlook for the external environment, such as new coronas, semiconductor shortages, and increases in material and logistics costs, is uncertain. ■With a certain amount of external risks factored in, the company expects to achieve higher sales an
Slide 10: 2-2) Forecasts - Business profit Analysis
2-2 ) Forecasts － Business profit Analysis reference: Unit：billions of yen FY21 results +13.5 +25.9 +5.0 +16.0 +1.0 +60.0 -16.5 -7.0 +5.3 +42.3 -12.0 Business operations Compress fixed costs Investing in priority areas ・ SBW, Gear Business, ・ CN, DX, etc. 10 JTEKT CORPORATION
Slide 11: 2-3) Forecasts - by Region
2-3 ) Forecasts － by Region Revenue Business profit Unit: [ Increase / decrease rate ] FY21 FY22 Unit: [ Ratio to sales revenue ] FY21 23/3期 billions of yen billions of yen currency Increase/decrease currency Increase/decrease Japan - 54.5 9.4% Japan 4.3 2.3 ＋ 54.5 [ + 9.4%] Europe -2.4 30.0 18.7% E
Slide 12: 2-4) Forecasts - by Business
2-4 ) Forecasts － by Business Revenue Business profit Unit: [ Increase / decrease rate ] FY21 FY22 Unit: [ Ratio to sales revenue ] FY21 FY22 billions of yen currency billions of yen currency Increase/decrease difference Increase/decrease difference ＋ 94.6 Steering ＋3.2 ＋10.3 Steering 3.0 91.6 13.3%
Slide 13: Agenda
Ⅰ. Settlement 1. Results for the year ended March 2022 2. Forecast for the fiscal year ending March 2023 Ⅱ. Approach to achieve the mid-term management plan １．FY2021 Mid-term management plan ２．FY2021 Review ３．FY2022 Priority efforts Appendix 13 JTEKT CORPORATION
Slide 14: 1. FY2021 Mid-term management plan
1 ．FY2021 Mid-term management plan In May 2021, Announced long-term and mid-term management plan The 10 years up to 2030 will be dividend into three period, the first mid-term plan period will be “Three-Year Plan to Strengthen JTEKT Structure”, and set a target of break-even point sales ratio (c
Slide 15: Agenda
Ⅰ. Settlement 1. Results for the year ended March 2022 2. Forecast for the fiscal year ending March 2023 Ⅱ. Approach to achieve the mid-term management plan １．FY2021 Mid-term management plan ２．FY2021 Review ３．FY2022 Priority efforts Appendix 15 JTEKT CORPORATION
Slide 16: 2. Priority Action Items for FY2021
２．Priority Action Items for FY2021 As the start of “Three-Year Plan to Strengthen JTEKT Structure," promote the following in this "the First Year of JTEKT's Reborn" Improvement of break-even point 1)Strengthen Structural Reforms in EU and North management foundation America Brand unification
Slide 17: 2-1) Strengthen management foundation
2-1）Strengthen management foundation Group-wide target of 85% break-even sales ratio (compared to FY19 sales), largely achieved excluding the impact of the external environment Break-even ratio Restructuring • Fixed cost reduction progressed as planned. 〈EU〉 • Improvement in variable cost ratio st
Slide 18: 2-1) Strengthen management foundation
2-1）Strengthen management foundation Announced Brand Unification in January 2022, unifying all business brands to “JTEKT” from April 1. Purpose 従前 Previous ブランド統一 Unification コーポレート Corporate ① Resolving shortages of old brands that 自動車事業 Automotive were not meeting customer expectations 産機・軸受事業 B
Slide 19: 2-2) Strengthen competitiveness
2-2）Strengthen competitiveness As the first JTEKT-brand grinding machine, a new series of high- quality, low-cost cylindrical grinders went on sale on April 1, 2022. Expanding target from "engine market" shrinking due to EVs to "general market". Realization of high quality and low cost • Cost re
Slide 20: 2-3) Seeding for the future
2-3) Seeding for the future Full-scale launch of gear business by integrating technologies and know-how within the Group Contribute to growth markets such as robotics and e-Axle with No. 1 & Only One gear Full-scale launch of gear business JTEKT Strengths Machine Tools + Products: • Gear Innovat
Slide 21: 2-4) Development of structures and HR
2-4）Development of structures and HR If all of us can seriously think and act on our contribution to the earth, the world, and our customers, we will become a strong company that is second to none. Promoting"JTEKT's Basic Philosophy" Instillation of JTEKT's Basic Philosophy • Recruitment of TQM
Slide 22: Agenda
Ⅰ. Settlement 1. Results for the year ended March 2022 2. Forecast for the fiscal year ending March 2023 Ⅱ. Approach to achieve the mid-term management plan １．FY2021 Mid-term management plan ２．FY2021 Review ３．FY2022 Priority efforts Appendix 22 JTEKT CORPORATION
Slide 23: 3. Priority Action Items for FY2022
３．Priority Action Items for FY2022 Second year of the “three years of strengthening the company’s structure” , continue working on JTEKT Reborn. 1)Developing ・To become a company where you can structure and challenge what you want to do. human resources ・JTEKT Group “Reborn” 2)Strengthen ・Creation
Slide 24: 3-1) Developing structure and human resources
3-1）Developing structure and human resources Aiming to be a free and open-minded company , which allows employees to challenge themselves to do what they want to do. Developing Developing Human Structure. Resources. A corporate Cheerful Ability Independence and culture that nurtures pleasant • Acq
Slide 25: 3-2) Strengthen competitiveness
3-2）Strengthen competitiveness The JTEKT Group will work as “one JTEKT” to create “happiness” for customers through the utilization of group seeds and the synergies between business units. Creation of synergies JTEKT Group “Reborn” between business units. • Strengthening collaboration • Achieve hi
Slide 26: 3-3) Seeding for the future
3-3) Seeding for the future Strengthen investment in new and advanced areas,such as new business and automated driving. Expand investments to strengthen competitiveness in existing areas. New business、automatic operacion support Investment strategy Use crickets as a food resource • Invest in exi
Slide 27: 3-3) Seeding for the future
3-3) Seeding for the future Aiming to be a system supplier that can be entrusted with the areas of drive and chassis that the finished vehicle manufacturer has been responsible for. Achieves high quality and low cost with low noise, high efficiency and low cost by system optimization Initiatives
Slide 28: 3-4) Strengthen management foundation
3-4）Strengthen managemet foundation "Carbon Neutral Strategy Office" and "DX Promotion Office" are newly established in August 2021. CN : All JTEKT's CN achievement time is five years ahead of schedule DX: Formulate a roadmap for “our future we want to be in 2030” ⇒ Enter the execution phase C
Slide 29: 3-5) ESG Initiatives
3-5） ESG Initiatives Actively work on ESG to become a sustainable corporate group that contributes to the earth, the world, and customers, and grows steadily like annual rings. Environment • Received high praise for collaborative activities with suppliers to achieve Scope 3 CN for all products in
Slide 30: Agenda
Ⅰ. Settlement 1. Results for the year ended March 2022 2. Forecast for the fiscal year ending March 2023 Ⅱ. Approach to achieve the mid-term management plan １．FY2021 Mid-term management plan ２．FY2021 Review ３．FY2022 Priority efforts Appendix 30 JTEKT CORPORATION
Slide 31: Appendix
Appendix １. Management index 2 . Financial statements 3 . Performance trends 4 . Business profit increase / decrease analysis 5 . Dividend transition 30 JTEKT CORPORATION
Slide 32: 1-1) Cash flows / ROE・ROA
1 -1 ) Cash flows／ROE・ROA Cash flow ROE / ROA Upper row Sales C/F Unit:billions of yen Free C/F ROE ROA Lowew row Investment C/F 39.2 392 41.7 417 27.6 276 9 0.9 9.7 1,000 100.0 1,030 103.0 ▲294 -29.4 917 91.7 623 62.3 67.0 670 4.6 4.2 3.3 1.9 1.5 ▲0.3 0.2 ▲252 -25.2 0.1 -52.5 ▲525 ▲0.8 -75.3 ▲753 ▲
Slide 33: 1-2) Changes in fixed costs
1-2 ) Changes in fixed costs Capital investment Depreciation R & D expenses Unit:billions of yen Unit:billions of yen Revenue ratio Unit:billions of yen 4.2% 4.6% 4.2% 3.3% 3.3% 75.2 752 75.0 750 646 66.9 669 65.0 650 65.0 650 64.3 643 64.6 630 63.6 64.7 636 647 63.0 50.7 507 521 52.1 52.0 520 47.5
Slide 34: 1-3) Management Indicators
1-3 ) Management Indicators Inventory / Interest- bearing debt / Cash on hand Inventory bearing debt / cash on hand Left bar Interst-bearing debt Unit:billions of yen Inventory turnover month NET DE ratio Right bar Cash reserves Unit:billions of yen 1.6 1.8 1.7 1.4 1.4 0.38 229.0 2,290 0.29 0.29 0.3
Slide 35: 2-1) Consolidated Statements of Financial Position
2-1 ) Consolidated Statements of Financial Position assets Debt / capital Unit:billion of yen Unit:billion of yen Increase / Liabilities and Increase / Assets 21/3 22/3 21/3 22/3 decrease equity decrease Cash and cash Trade and other 118.6 124.2 +5.6 286.6 317.6 +31.0 equivalents payables Trade and
Slide 36: 2-2) Consolidated Statements of Income / Cash flow statement
2 -2 ) Consolidated Statements of Income ／ Consolidated cash flow statement Consolidated income statement Consolidated cash flow statement Unit:billion of yen Unit:billion of yen Increase / Increase / 21/3 22/3 21/3 22/3 decrease decrease Cash flows from Sales revenue 1,246.2 1,428.4 +182.1 operatin
Slide 37: 3-1) Performance trends
3-1 ) Performance trends Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 6.2% 4.6% 4.2% 4,064 406.4 2.6% 2.7% 2.0% 22.5 225 2.1% 3,633 362.7 363.3 3,627 3,578 357.8 3,441 344.1 16.6 166 170 17.0 3,249 324.9 3,199 319.9 8.9 89 97 9.7 65 6.5 65 6.5 195.3 1,953 ▲15.3%
Slide 38: 3-2) Performance Trends-Japan
3-2 ) Performance Trends-Japan Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 1,681 168.1 7.3% 6.5% 1,534 1,531 153.4 153.1 4.5% 2.8% 1.7% 111 2.2% 1.9% 108 1,394 139.4 138.71,3531,402 1,387 140.2 11.1 10.8 135.3 6.9 69 30 3.0 3.7 37 24 2.4 2.5 25 91.6 916 ▲22.1% -
Slide 39: 3-3) Performance Trends-Europe
3-3 ) Performance Trends-Europe Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 0.9% - ▲2.0% - ▲4.7% - ▲4.0% - ▲7.1% - ▲4.4% 4 0.4 - ▲8.1% 463 46.3 461 46.1 44.9 449 428 42.8 39.4 394 395 39.5 -▲9 0.9 331 33.1 ▲15 ▲18 -1.8 ▲18 -1.8 - 1.5 ▲26 -2.6 ▲31 -3.1 189 18.9 ▲
Slide 40: 3-4) Performance Trends-North America
3-4 ) Performance Trends- North America Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 3.5% 3.2% 1.1% 84.0 840 - ▲1.4% - ▲1.1% 73.3 2.3 23 2.2▲0.6% 22 - 702 733 70.2 71.9 719 68.4 684 685 68.5 65.4 654 - ▲3.6% 7 0.7 -0.4 ▲4 ▲9 -1.0 -0.9 ▲10 ▲23 -2.3 32.1 321 - ▲20.
Slide 41: 3-5) Performance Trends-China
3-5 ) Performance Trends-China Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 11.4% 10.4% 9.3% 9.5% 9.3% 7.9% 7.2% 52.3 523 457 45.7 46.6 466 7.2% 43.7 437 59 5.9 39.6 396 38.4 37.2 372 38.1 381 384 47 4.7 3.7 37 4.0 40 34 3.4 33 3.3 27 2.7 30 3.0 1Q 2Q 3Q 4Q 1Q 2Q
Slide 42: 3-6) Performance Trends-Asia, etc.
3-6 ) Performance Trends-Asia , etc. Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 12.7% 10.8% 10.4% 11.1% 10.0% 8.7% 5.8% 6.9 69 6.9 69 62.6 626 5.1 51 5.1 51 5.3 53 54.9 549 538 53.8 3.9 39 49.1 491 47.6 454 476 45.4 2.1 21 37.9 379 15.2 152 - ▲22.9% ▲34 -3.4 1Q
Slide 43: 3-7) Performance Trends-Automobile
3-7 ) Performance Trends -Automobile ( Steering + Drivelines ) Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 276.5 2,765 5.3% 6.2% 2,560 256.0 2.8% 2,468 246.8 2,455 245.5 2.5% 1.8% 237.3 2,373 152 15.2 1.5% 2,202 220.2 13.4 134 2,058 205.8 7.7 77 56 5.6 4.2 - 42
Slide 44: 3-8) Performance Trends-Industrial Machinery/Bearings
3-8 ) Performance Trends -Industrial Machinery/Bearings Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 6.6% 6.1% 5.1% 4.9% 5.0% 3.7% 52 5.2 79.6 796 77.3 82.9 829 4.4 44 773 771 77.1 - ▲1.3% 3.9 39 41 4.1 746 74.6 740 74.0 37 3.7 2.7 27 69.3 693 46.6 466 ▲9 -0.9 -
Slide 45: 3-9) Performance Trends-Machine Tools
3-9 ) Performance Trends -Machine Tools ( Machine Tools + Others ) Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 10.5% 7.0% 46.8 468 4.7% 4.9% 49 4.9 400 40.0 36.2 352 32.6 362 35.2 351 35.1 4.8% 326 28 2.8 29.3 293 26.0 260 1.7% 1.7 16 0.6% 17 1.6 1.7 17 4 0.4 0.
Slide 46: 3-10) Performance Trends-Steering
3-10 ) Performance Trends-Steering Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 6.3% 4.6% 2.2% 1.1% 1.8% 1.8% 1,838 1,918 191.8 11.2 112 183.8 178.01,706 1,780 1,796 179.6 170.6 8.5 85 1,578 157.8 - ▲0.1% 1,481 148.1 3.4 34 3.3 33 3.3 33 1.9 19 ▲1 -0.1 881 88.1 -
Slide 47: 3-11) Performance Trend-Drivelines
3-11 ) Performance Trend - Drivelines Revenue Business profit Unit: ● Revenue ratio Unit:billions of yen billions of yen 6.8% 5.7% 5.1% 3.5% 3.5% 0.6% 49 4.9 84.6 39 3.9 4.3 43 846 - ▲1.4% 21 2.1 23 2.3 72.1 721 68.7 66.7 687 667 65.9 659 624 62.4 0.4 4 57.7 577 -0.8 ▲8 34.4 344 - ▲20.4% ▲70 -7.0 1Q
Slide 48: 3-12) Performance Trends-Machine Tools
3-12 ) Performance Trends-Machine Tools ( Excluding Others ) Revenue Business profit Unit:billions of yen Unit:billions of yen ● Revenue ratio 12.3% 456 45.6 8.9% 398 39.8 6.5% 5.5 55 355 347 5.7% 347 34.7 35.5 34.7 32.4 324 292 6.0% 29.2 3.5 35 256 25.6 2.3 23 2.7% 19 1.5% 1.9 2.0 20 0.7 7 4 0.4 -
Slide 49: 4-1) Business profit increase/decrease analysis - Steering/Drivelines
4-1 ) Business profit increase / decrease analysis - By business (steering / drivelines) Unit:billions of yen +8.5 Steering +2.2 +4.1 +8.9 -6.1 +8.4 -4.1 -3.1 -2.3 FY2020 Exchange Profit loss Material and Selling Cost Cost Others FY2022 impact by sales logistics cost price improvement decrease +5.1
Slide 50: 4-2) Business profit analysis - Bearing/Machine Tools
4-2 ) Analysis of increase / decrease in business profit - By business ( bearing / machine tool ) Unit:billions of yen +12.0 +6.6 +16.3 +1.5 -0.6 +2.7 bearing -3.9 -1.6 -0.4 FY2020 Exchange Profit loss Material and Selling Cost Cost Others FY2022 impact by sales logistics cost price improvement decr
Slide 51: Return to Shareholders
5 ) Return to Shareholders Dividend… Dividend payout ratio (%) 685.2 61.2 41.1 39.5 26.9 26.3 27.4 29.6 30.3 29.7 29.8 30.2 Dividend 13.50 17.7 Shareholders payout ratio 30 % Return to 42 42 43 44 Upper 上段 row Year-end dividend 期末配当 38 下段 row Lower 中間配当 Interim dividend 34 Unit: Yen / Share 24 21 21
Slide 52: Note on forward-looking statements
[ 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. 51