JTEKT Corporation · TSE:6473

JTEKT — Q2 FY2022 Earnings Presentation

51 slides from JTEKT's earnings presentation, Nov 9, 2022

  1. Slide 1: Financial results for the 2nd quarter of FY2022, ending March 2023

    Financial results for the 2 nd quarter of FY2022, ending March 2023 November 9, 2022 1 JTEKT CORPORATION

  2. Slide 2: Overview of Financial Results

    Overview of Financial Results Revenue increased YoY due to the recovery of automotive production and impact of foreign exchange rate. Results Despite negative impacts from cost inflation of materials, logistics, and energy, business profit increased with sales increase, foreign exchange rate, and co

  3. Slide 3: Contents

    Contents １．Results for the 2nd Quarter of FY2022, Ending March 2023 P4 ２．Forecasts for FY2022, ending March 2023 P9 ３．Actions to achieve the mid-term management plan P14 ４．Appendix P27 3 JTEKT CORPORATION

  4. Slide 4: 1-1) 2Q results - Consolidated Performance

    1-1）2Q results - Consolidated Performance  Revenue increased YoY due to the recovery of automotive production and the effect of foreign exchange rate.  Negative impact with cost inflation of materials, logistics, and energy, however, business profit increased YoY with sales increase, foreign excha

  5. Slide 5: 1-2) Business profit Analysis

    1-2）Business profit Analysis Unit: Billion of yen 5 JTEKT CORPORATION

  6. Slide 6: 1-3) Results by Region

    1-3）Results by Region Revenue Business profit Unit: Billion of yen FY2021 2Q FY2022 2Q Unit: Billion of yen (Ratio to revenue) FY2021 2Q FY2022 2Q 302.1 274.1 11.9 11.1 (9.5%) (3.7%) 9.1 8.1 (9.8%) 6.8 7.1 (8.3%) 190.6 (2.5%) (8.6%) 138.8 125.6 97.5 93.0 88.5 82.1 75.9 -1.8 -2.7 (-1.0%) (-2.0%) -4.5

  7. Slide 7: 1-4) Results by Business unit

    1-4）Results by Business unit Revenue Business profit Unit: Billion of yen FY2021 2Q FY2022 2Q Unit: Billion of yen (Ratio to revenue) FY2021 2Q FY2022 2Q 382.9 318.7 8.4 (5.6%) 7.5 7.0 (8.8%) (4.1%) 161.0 173.7 151.4 4.3 (6.2%) 124.4 1.7 1.5 2.4 (1.6%) (0.6%) 1.4 (1.2%) 85.9 (0.4%) 69.0 0.8 0.4 -1.0

  8. Slide 8: Contents

    Contents １．Results for the 2nd Quarter of FY2022, Ending March 2023 P4 ２．Forecasts for FY2022, ending March 2023 P9 ３．Actions to achieve the mid-term management plan P14 ４．Appendix P27 8 JTEKT CORPORATION

  9. Slide 9: 2-1) Forecasts - Consolidated Performance

    2-1）Forecasts - Consolidated Performance  Despite negative impact of cost inflation, business profit increased YoY with foreign exchange rate, and promoting profit improvement activities.  We will promote profit improvement, cost reduction activities and minimize negative impact of inflation by sa

  10. Slide 10: 2-2) Forecasts - Business profit Analysis

    2-2）Forecasts - Business profit Analysis Unit: Billion of yen 10 JTEKT CORPORATION

  11. Slide 11: 2-3) Forecasts by Region

    2-3）Forecasts by Region Revenue Business profit Unit: Billion of yen FY2021 FY2022 Unit: Billion of yen (Ratio to revenue) FY2021 FY20222 620.0 582.4 33.5 (5.4%) 25.0 21.4 (9.4%) (10.2%) 20.3 394.0 17.5 (3.5%) 16.4 (9.1%) (8.0%) 294.7 265.0 220.0 1.0 201.0 209.5 (0.3%) 160.3 181.2 -4.7 (-1.6%) -9.6

  12. Slide 12: 2-4) Forecasts by Business unit

    2-4）Forecasts by Business unit Revenue Business profit Unit: Billion of yen FY2021 FY2022 Unit: Billion of yen (Ratio to revenue) FY2021 FY2022 811.5 690.3 17.5 17.5 16.3 16.5 (2.2%) (5.0%) (5.3%) (8.8%) 350.0 349.0 12.0 10.5 (8.0%) 311.5 8.4 (3.0%) 275.0 (1.2%) 6.2 (2.3%) 187.5 149.4 2.0 2.0 -2.0 -

  13. Slide 13: Contents

    Contents １．Results for the 2nd Quarter of FY2022, Ending March 2023 P４ ２．Forecasts for FY2022, Ending March 2023 P９ ３．Actions to achieve the mid-term management plan P１４ ４．Appendix P２７ 13 JTEKT CORPORATION

  14. Slide 14: 3. Actions to achieve the mid-term management plan

    3. Actions to achieve the mid-term management plan  In May 2021, Announced The Medium- to Long-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 enhancing our corporate structure”, and set a target of break

  15. Slide 15: 3. Actions to achieve the mid-term management plan

    3. Actions to achieve the mid-term management plan  In the second year of Three-Year Plan to enhancing our corporate structure, we continue to work on “JTEKT Reborn”. 1) Development of HR and structures Spreading JTEKT's Basic Philosophy  Approach to electrification 2) Strengthen  Reinforced Driv

  16. Slide 16: 3-1) Development of HR and structures

    3-1) Development of HR and structures  Become a free and open-minded company where people can say what they want to say, and do what they want to do, through the penetration of "JTEKT Basic Philosophy". Action items Progress / Result For the earth For the world • Monthly Survey • Correlation betwee

  17. Slide 17: 3-2) Strengthen competitiveness

    3-2）Strengthen competitiveness  Aiming for business growth in the electric vehicle and industrial machinery markets by demonstrating group synergies. Electrification of automobiles Industrial machinery growing market Needs changing with electrification High Light Low power Downsize efficiency weigh

  18. Slide 18: 3-2) Strengthening Competitiveness ①: eAxle Area

    3-2) Strengthening Competitiveness ① Approach to electrification- eAxle Area ■ Contribute to the important elements of the eAxle, such as downsizing, lighter weight, and higher efficiency, by utilizing the Group's products and technologies as a unit. Market trends and targets Enhancement area eAxle

  19. Slide 19: 3-2) Strengthening Competitiveness ②: Commercial Vehicle STG Area

    3-2) Strengthening Competitiveness ② Approach to electrification- Commercial Vehicle STG Area ■ As the No. 1 steering manufacturer, we will respond to the electrification of commercial vehicles expected in the future, and realize the electrification of steering for small commercial vehicles. Market

  20. Slide 20: 3-2) Strengthening Competitiveness ③: Drive Line Area

    3-2) Strengthening Competitiveness ③ Approach to Strengthen Drive Line Area  Acquire overwhelming competitiveness (performance/cost) as a Driveline system and expand global share to increase market share. Expand global market share (2022 is based on our research) Aiming to increase market share by

  21. Slide 21: 3-2) Strengthening Competitiveness ④: Robot Area

    3-2) Strengthening Competitiveness ④ Approach to Industrial Machinery Growth Market - Robot Area  The industrial robot market, which is growing against the backdrop of labor shortages, will be supported by technology. Market Trends and Target Products/Strengths (billion yen) Robot Market Growing Ra

  22. Slide 22: 3-3) Seeding for the future ①: Autonomous Driving

    3-3) Seeding for the future ① Approach to Autonomous Driving  Proposal of proprietary technology for the future growing of Automated driving, both in terms of hardware and software. Market trends and targets Product / Technology • The market is growing steadily, especially PairdriverTM for ADAS Lev

  23. Slide 23: 3-3) Seeding for the future ②: Aftermarket business

    3-3) Seeding for the future ② Expansion of aftermarket business  Aiming to double sales by expanding the aftermarket business domain through “products x regions”. Growth strategy • Sequential lineup of group products, ① Enhanced product lineup including steering and drive line parts ・ Expanding Aut

  24. Slide 24: 3-4) Strengthen management foundation

    3-4) Strengthen management foundation Initiatives for One JTEKT  Cultivate a sense of group unity through One JTEKT measures.  Deepen mutual understanding and achieve group synergies. Discovery of new synergies One JTEKT measures DISCOVER JTEKT Group company name change • All members watch a VTR t

  25. Slide 25: 3-5) ESG initiatives

    3-5) ESG initiatives  Strengthen ESG initiatives together with group companies and suppliers for the sake of the earth, society, and customers. Environment Governance Energizing discussion, including outside officers  Thorough energy conservation • Enhancement of opportunities to thoroughly with t

  26. Slide 26: Contents

    Contents １．Results for the 2nd Quarter of FY2022, Ending March 2023 P４ ２．Forecasts for FY2022, Ending March 2023 P９ ３．Actions to achieve the mid-term management plan P１４ ４．Appendix P２７ 26 JTEKT CORPORATION

  27. Slide 27: 4-1) Management indicators

    4-1）Management indicators 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 3.2 5.0 104.1 3.9 91.7 Unit: Billion of yen -29.4 3.3 62.3 67.0 27.0 2.1 1.8 0.2 1.5 -0.3 -25.2 -23.8 0.1 -52.5 -0.7 -75.2 -9

  28. Slide 28: 4-1) Management indicators

    4-1）Management indicators Capital expenditures Depreciation and amortization R&D expenses Upper row Oct-Mar Unit: Billion of yen Ratio to revenue Lower row Apr-Sep Unit: Billion of yen 4.2% 4.6% 4.2% 3.3% 3.1% 75.2 75.0 66.9 65.0 Unit: Billion of yen 65.0 64.3 64.6 63.0 63.6 64.7 52.1 52.0 43.0 39.4

  29. Slide 29: 4-1) Management indicators

    4-1）Management indicators Inventories Interest bearing debt / Cash reserves Left bar Interest bearing debt Inventory turnover month NET DE ratio Right bar Cash reserves 1.6 1.8 1.7 1.8 1.4 0.39 Unit: Billion of yen 255.8 0.30 0.26 Unit: Billion of yen 229.0 0.21 0.22 328.1 185.5 190.8 286.2 182.8 27

  30. Slide 30: 4-2) Financial statements

    4-2）Financial statements Assets Liabilities and equity Unit: Billion of yen Unit: Billion of yen FY2021 FY2022 Liabilities FY2021 FY2022 Assets Change Change End 2Q End and equity End 2Q End Cash and cash Trade and other 124.2 116.6 -7.5 317.6 324.7 +7.0 equivalents payables Trade and other Interest

  31. Slide 31: 4-2) Financial statements

    4-2）Financial statements Consolidated Statement of Profit or Loss Consolidated Statement of Cash Flows Unit: Billion of yen Unit: Billion of yen FY2021 FY2022 FY2021 FY2022 Change Change 2Q 2Q 2Q 2Q Cash flows from Revenue 664.1 804.5 +140.4 operating activities 37.6 27.0 -10.5 Cash flows from Busin

  32. Slide 32: 4-3) Performance Comparison - Results (Region)

    4-3）Performance Comparison - Results (Region) a b a-b Unit: Billion of yen FY2021 FY2022 Foreign FY2022 Change excluding Region Change 2Q 2Q exchange 2Q foreign exchange Japan 274.1 302.1 +28.0 +10.2% - 302.1 +28.0 +10.2% Europe 75.9 88.5 +12.5 +16.6% +5.0 83.5 +7.5 +9.9% Revenue North America 138.8

  33. Slide 33: 4-3) Performance Comparison - Results (Business unit)

    4-3）Performance Comparison - Results (Business unit) a b a-b Unit: Billion of yen FY2021 FY2022 Foreign FY2022 Change excluding Business Change 2Q 2Q exchange 2Q foreign exchange Steering 318.7 382.9 +64.2 +20.1% ＋38.2 344.7 +25.9 +8.1% Drivelines 124.4 161.0 +36.5 +29.4% ＋9.1 151.9 +27.4 +22.1% Aut

  34. Slide 34: 4-4) Quarterly Result Trend

    4-4）Quarterly Result Trend Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 432.8 406.4 4.2% 3.6% 2.6% 371.6 2.1% 2.7% 357.8 0.7% 344.1 319.9 17.0 15.4 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 FY2021 FY2022 34 JTEKT CORPORATION

  35. Slide 35: 4-4) Quarterly Result Trend - Japan

    4-4）Quarterly Result Trend - Japan Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 6.5% 6.0% 168.1 2.8% 164.0 2.2% 1.9% 0.9% 138.7 140.2 138.1 135.3 10.8 9.8 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 FY2022 FY2021 FY2022 35 JTEKT CORP

  36. Slide 36: 4-4) Quarterly Result Trend - Europe

    4-4）Quarterly Result Trend - Europe Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue -4.4% -4.7% -7.1% -7.1% -8.1% -8.2% 44.9 44.2 44.3 42.8 39.5 33.1 -1.8 -1.8 -2.6 -3.1 -3.1 -3.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 FY2021 FY2022 36 JTEK

  37. Slide 37: 4-4) Quarterly Result Trend - North America

    4-4）Quarterly Result Trend - North America Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 101.3 89.3 -0.6% -1.1% -0.9% 84.0 -1.4% -1.2% -3.6% 73.3 71.9 65.4 -0.4 -0.9 -0.8 -1.0 -1.0 -2.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 FY2021 FY2022

  38. Slide 38: 4-4) Quarterly Result Trend - China

    4-4）Quarterly Result Trend - China Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 11.4% 10.4% 9.3% 7.9% 7.2% 54.0 5.9 5.8% 52.3 5.6 43.7 46.6 43.4 38.4 4.0 3.3 3.0 2.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 FY2021 FY2022 38 JTEKT CORPORATI

  39. Slide 39: 4-4) Quarterly Result Trend - Asia & Others

    4-4）Quarterly Result Trend - Asia & Others Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 10.8% 11.1% 10.4% 8.7% 10.0% 8.4% 69.0 6.9 7.1 62.6 56.5 5.3 53.8 5.1 45.4 47.6 4.7 3.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 FY2021 FY2022 39 JTEKT

  40. Slide 40: 4-4) Quarterly Result Trend - Automotive

    4-4）Quarterly Result Trend - Automotive (Steering + Drivelines) Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 2.8% 1.8% 1.5% 2.3% 285.0 276.5 258.9 237.3 245.5 -0.5% -1.0% 205.8 7.7 6.5 4.2 3.7 -0.9 -2.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY

  41. Slide 41: 4-4) Quarterly Result Trend - Industrial & Bearings

    4-4）Quarterly Result Trend - Industrial & Bearings Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 6.1% 97.3 5.1% 4.9% 5.0% 4.0%4.1% 82.9 77.3 76.3 74.0 77.1 4.4 4.1 3.9 3.7 4.0 3.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 FY2021 FY2022 41 JT

  42. Slide 42: 4-4) Quarterly Result Trend - Machine tools

    4-4）Quarterly Result Trend - Machine tools (Machine tools & others) Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 10.5% 8.9% 7.0% 50.4 46.8 5.3% 40.0 4.8% 35.1 36.2 4.9 1.7% 4.5 29.3 2.8 1.9 1.7 0.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022

  43. Slide 43: 4-4) Quarterly Result Trend - Steering

    4-4）Quarterly Result Trend - Steering Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 205.9 191.8 1.8% 1.8% 2.4% 179.6 177.0 1.1% 170.6 -0.1% 4.8 148.1 -1.9% 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 FY2021 FY2022 FY2021 FY2022 43 JTEK

  44. Slide 44: 4-4) Quarterly Result Trend - Drivelines

    4-4）Quarterly Result Trend - Drivelines Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 5.1% 3.5% 2.1% 0.6% 1.0% 84.6 81.9 79.0 -1.4% 66.7 65.9 4.3 57.7 2.3 1.6 0.8 0.4 -0.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 FY2021 FY2022 44 JTEKT CORP

  45. Slide 45: 4-4) Quarterly Result Trend - Machine tools

    4-4）Quarterly Result Trend - Machine tools (Others excluded) Revenue Business profit Unit: Billion of yen Unit: Billion of yen ● Ratio to revenue 12.3% 10.1% 8.9% 50.0 45.6 6.8% 6.0% 39.8 35.8 2.7% 34.7 5.5 29.2 5.0 3.5 2.0 2.4 0.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 FY2021

  46. Slide 46: 4-5) Business profit Analysis - Steering / Drivelines

    4-5）Business profit Analysis － Steering / Drivelines Unit: Billion of yen Steering Unit: Billion of yen Drivelines 46 JTEKT CORPORATION

  47. Slide 47: 4-5) Business profit Analysis - Industrial & Bearings / Machine tools

    4-5）Business profit Analysis － Industrial & Bearings / Machine tools Unit: Billion of yen Industrial & Bearings Unit: Billion of yen ※ Others excluded Machine tools 47 JTEKT CORPORATION

  48. Slide 48: 4-6) Performance Comparison - Forecasts (Region)

    4-6）Performance Comparison - Forecasts (Region) a b a-b Unit: Billion of yen Foreign Change excluding Region FY2021 FY2022 Change FY2022 exchange foreign exchange Japan 582.4 620.0 +37.5 +6.4% - 620.0 +37.5 +6.4% Europe 160.3 201.0 +40.6 +25.3% +10.0 191.0 +30.6 +19.1% Revenue North America 294.7 39

  49. Slide 49: 4-6) Performance Comparison - Forecasts (Business unit)

    4-6）Performance Comparison - Forecasts (Business unit) a b a-b Unit: Billion of yen Foreign Change excluding Business FY2021 FY2022 Change FY2022 exchange foreign exchange Steering 690.3 811.5 +121.1 +17.6% +65.5 746.0 +55.6 +8.1% Drivelines 275.0 350.0 +74.9 +27.3% +15.5 334.5 +59.4 +21.6% Automoti

  50. Slide 50: 4-7) Return to Shareholders

    4-7）Return to Shareholders Dividend payout ratio (%) 685.2 55.4 Return to Shareholders 26.3 27.4 29.6 30.3 29.7 29.8 30.2 30% - line Upper row Year-end dividend Lower row Interim dividend 42 42 43 44 38 34 Unit: yen per share 21 21 22 22 16 22 18 20 16 18 11 11 21 21 21 22 22 8 10 14 8 8 11 7 FY2013

  51. Slide 51: 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 JTEKT CORPORATION

JTEKT — Q2 FY2022 Earnings Presentation on 6ix