Fujikura Ltd · TSE:5803
Fujikura — H1 FY2012 Earnings Presentation
36 slides from Fujikura's earnings presentation, Oct 29, 2012
Slide 1: FY2012 Financial Results
FY2012 Financial Results Fujikura Ltd. 29 Oct. 2012
Slide 2: 1st Half Business Status Summary and FY2011 Financial Results
Ⅰ． 1st Half Business Status Summary and 2nd Half Measures & Policies by President & C.E.O. Yoichi Nagahama Ⅱ. FY2011 Financial Results by Takashi Kunimoto Senior Vice President and Member of Board 1
Slide 3: 1st Half Business Status Summary and 2nd Half Measures & Policies
Ⅰ． 1st Half Business Status Summary and 2nd Half Measures & Policies 2
Slide 4: 1st Half Business Status Summary
1． 1st Half Business Status Summary Restoration status of Electronics Business 1) Almost complete the recovery of the damaged factories 2) Construct a new factory in the high-lying area in Thailand for BCP purpose, by the end of FY2012 3) Recovery of customer bases needs a little more time Busin
Slide 5: 2nd Half Measures & Policies
2. 2nd Half Measures & Policies Execute company-wide structural reform mainly for the businesses in Japan to achieve 2012 Mid-term business plan Make every possible efforts on recovering customer bases and securing the orders, in the FPC and other electronics businesses ※Another concern Possible
Slide 6: Restoration of Electronics business: Kabinburi factory construction
Reference 1．Restoration of Electronics business -Current status of Kabinburi factory’s construction - Bangkok Land： 53,015㎡ Building： 29,948㎡ Product： FPC Start Operation： Mar 2013 5
Slide 7: Restoration of Electronics business: Flood countermeasures in Thailand
Reference 2．Restoration of Electronics business - Flood countermeasures in Thailand - Implementer Countermeasures Industrial zConstruct the floodwalls 6.0 Park above sea level in Rojana and Navanakorn industrial park 3.0m Floodwall at Navanakorn industrial park Fujikura zFETL Ayutthaya Factory Group
Slide 8: Overseas operations of automotive components business
Reference 3. Overseas operations of automotive components business • Build European R&D center • Build factories according to the customer’s needs Fujikura Ltd. Fujikura Automotive Europe SAU Wolfsburg Ingolstadt Changchun Fujikura Korea Automotive Ltd. Yonezawa Electric Wire Co,.Ltd. Lafayette Dej
Slide 9: Contents
Contents 1. Impact of the Floods on Business results 2. Summary of FY2012 １H business results and Management Plan for FY2012 3. Shareholder Return 8
Slide 10: Summary of FY2012 1Q business results and estimation of 1st half results
Summary of FY2012 1Q business results and estimation of 1st half business results （Billions of yen） FY2012 FY2011 FY2012 Projections on July 30 ２H FY12 1H ２H FY11 1H １H FY12 （Est.) （Est.) Net Sales 268.2 240.7 509.0 239.6 260.4 500.0 240.0 500.0 Operating Income 6.3 7.0 13.3 4.3 3.7 8.0 5.0 13.0 Ope
Slide 11: Impact of the Floods on Business results
1. Impact of the Floods on Business results 10
Slide 12: Impact of the Floods on Business results (1)
Impact of the Floods on Business results （1） The latest status of Recovery FPC business restarts the operation in the restored factory which suffered damage by the flood and makes continuous efforts to rebuild the production systems to increase the capacity in FY2012 2H. FPC business division wi
Slide 13: Impact of the Floods on the operation income (1)
Impact of the Floods on the operation income （１） （Billions of yen） FY2011 FY2012 GAP １H 1H (B – A) （Results） A （Results） B FPC 34.5 7.5 (27.0) Connector 15.8 15.6 (0.2) Others 19.4 13.8 (5.6) Automotive 30.6 43.0 12.4 Components Electronics & Auto Total Net Sales 100.5 80.1 (20.4) Operating Income 1
Slide 14: Impact of the Floods on the operation income (2)
Impact of the Floods on the operation income （2） （Billions of yen） FY2011 FY2012 GAP FY11 FY12 1H 2H 1H 2H （B - A） Results （Est.） Results Results Results （Est.） A B FPC 34.5 13.4 47.9 7.5 15.5 23.0 (24.9) Connector 15.8 14.4 30.2 15.6 17.0 32.6 2.4 Others 19.4 12.5 31.9 13.8 15.0 28.8 (3.1) Automoti
Slide 15: Extraordinary Profit & Loss
Extraordinary Profit & Loss ■ Posted the cost for repairing and restoration at the facilities which suffered the flood damage ■ The fixed cost during the suspension of operation is decreasing according to recovery （単位：億円） of operation in progress ■ The restoration cost such as repairing expenses etc
Slide 16: CAPEX for restoration from the Flood in Thailand
CAPEX for restoration from the Flood in Thailand • FY2011 : JPY 4.4 billion, • FY2012 1H : JPY 9.3 billion • FY2012 2H projections: JPY 11.0 billion • A new factory will be built at the high altitude area (Kabinburi zone) in order to avoid any flood risks on the FPC production (Billions of yen) CAPE
Slide 17: Financial Results for the First Half of FY2012 and Management Plan
２. Financial Results for the First Half of FY2012 and Management Plan for FY2012 16
Slide 18: Summary of 1H FY2012 Results (year-on-year comparison)
Summary of 1H FY2012 Results (year-on-year comparison basis) （Billions of yen） FY2012 (Est.) FY2011 FY2012 (30 July 2012) 2H FY 12 1H 2H FY 11 1H 1H FY12 (Est.) (Est.) Net Sales 268.2 240.7 509.0 239.6 260.4 500.0 240.0 500.0 Operating Income (loss) 6.3 7.0 13.3 4.3 3.7 8.0 5.0 13.0 Operating Income
Slide 19: Summary of 1H FY2012 Results (year-on-year comparison)
Summary of 1H FY2012 Results (year-on-year comparison basis) Net sales in the first half of FY 2012 dropped by 28.6 billion yen from the corresponding period in the previous year, affected by the flood in Thailand, in addition to the impacts from higher yen and the sudden drop of copper price, eve
Slide 20: Canyon chart between 1H FY2011 and 1H FY2012: Net Sales
Canyon chart between 1H FY2011 and 1H FY2012 Net Sales （Billions of yen） Decline by the Exclusion of the Decline by the sharp drop of negative affect by higher yen copper price the Great East Net Change Japan Earthquake (1.8) (8.0) +10.0 (28.8) 268.2 239.6 Compared with FY2011 1H: (28.6) 1,206 FY201
Slide 21: Canyon chart between 1H FY2011 and 1H FY2012: Operating Income
Canyon chart between 1H FY2011 and 1H FY2012 Operating Income （Billions of yen） Exclusion of the negative affect by the Great East Net Income Japan Earthquake Decrease Decline by the +3.0 (6.6) sharp drop of Decline by the copper price higher yen +2.0 (0.3) 6.3 Compared with FY2011 1H: (2.0) 4.3 FY2
Slide 22: Summary of 1H FY2012 business results
Summary of 1H FY2012 business results Extraordinary profit and loss （Billions of yen） FY2011 FY2012 1H 2H FY11 1H Major items of Operating Income 6.3 7.0 13.3 4.3 extraordinary profit Equity Method 0.3 0.4 0.8 0.1 Received Income 4.5 insurance Ordinary Income 4.9 4.2 9.1 2.7 Extraordinary Gains 0.
Slide 23: Consolidated B/S (1)
Consolidated B/S (1) （Billions of yen） As of March As of Sept. GAP 31, 2012 30, 2012 〈Assets〉 489.4 488.6 (0.8) Current Assets 251.7 242.8 (8.8) Cash and Deposits 59.6 53.1 (6.5) Notes and Account 116.4 111.8 (4.5) receivable Increase of Inventories 53.1 57.4 4.3 CAPEX for the restoration from Fixed
Slide 24: Consolidated B/S (2)
Consolidated B/S (2) （Billions of yen） As of March As of Sept. GAP 31, 2012 30, 2012 Total 489.4 488.6 (0.8) 〈Liabilities〉 305.2 317.3 12.1 Increased borrowing due to the advance Notes and Account funding for the 74.6 66.2 (8.3) Payable repayment of long‐ Interest-bearing Debt 168.3 188.0 19.7 term
Slide 25: Result and Estimation by segment
Result and Estimation by segment （Billions of yen） Net Sales Operating Income and Margin FY2012 FY2012 FY2011 FY2012 FY2011 FY2012 Segment Gap 2H Gap 2H 1H 1H 1H 1H (Est.） (Est.） Telecom- 4.4 2.4 (2.0) 1.6 52.3 53.5 1.2 55.6 munications 8.6% 4.7% (3.9)% 2.9% Electronics & 1.1 (2.5) (3.6) (1.6) 100.5
Slide 26: Canyon Chart between 1H FY2012 and 2H FY2012 in Operating Income
Canyon Chart between １H FY2012 and ２H FY2012 in Operating Income Operating Income （Billions of yen） Electronics & Real estate Telecom Autos (0.8) +0.9 (0.6) 4.3 3.7 (0.6) compared with FY2012 1H FY2012 1H FY2012 2H (Est.) 25
Slide 27: Telecommunications
Telecommunications FY2012 1H results was decreased in profit from the corresponding period in the previous year, due to the increasing competition in the domestic market despite increase in revenues reflecting the strong demand overseas. FY2012 2H estimated to be decreased in profit, despite inc
Slide 28: Electronics & Auto
Electronics & Auto Automotive components division recovered from the Great East Japan Earthquake, but Electronics division suffered the damage by the Flood in Thailand. As a result, the revenue of the segment decreased on year-on-year basis Electronics division is estimated to increase in revenu
Slide 29: Metal Cable & Systems
Metal Cable & Systems Tough environment in the power utility market in Japan Continue effort to improve the profitability through the structural business reform Net Sales and Operating Income Margin Metal Cable & Systems (Billions of yen) The profit in FY20121 1H was restored due to the favora
Slide 30: Real Estate Segment
Real Estate Segment Income from leasing property centered on redevelopment project of Fukagawa, “Fugkagawa Gatharia” keeps contributing profit. Net Sales and Operating Income Margin Real Estate （Billions of yen） The revenue of FY2012 2H is estimated to decrease due to the temporary expenses Oper
Slide 31: CAPEX (Excluding budget for Thai restoration)
CAPEX (Excluding budget for Thai restoration) （Billions of yen） FY2011 1H Fiscal FY2012 1H 2H Year Capex 15.0 18.3 33.3 13.4 （Manufacturing） 14.8 16.8 31.7 12.6 （Real estate ） 0.1 1.4 1.5 0.7 Depreciation 12.2 11.8 24.1 11.0 （Manufacturing） 11.0 10.6 21.6 9.9 （Real estate ） 1.2 1.2 2.4 1.1 Notes: 1.
Slide 32: Interest-bearing debts, Net financial profit and free cash flow
Interest–bearing debts, Net financial profit and free cash flow （Billions of yen） FY2011 FY2012 1H 2H Fiscal Year 1H Interest – bearing debts 195.2 168.3 168.3 188.0 Net Financial Profit /Loss (1.0) (1.1) (2.1) (0.9) Free Cash Flow *(35.6) 47.0 11.4 (20.6) Free Cash Flow = Investing Cash Flow + Inte
Slide 33: Shareholder Return
3. Shareholder Return SS = =——tM F Fujikura 32
Slide 34: Dividend per share
Shareholder Return Will keep stable return Dividend per share – FY2011 JPY 5.0/share – FY2012 1H JPY 2.5/share ¾ Dividend Payout Plan FY2012 : JPY 5.0/share （1H JPY 2.5/share, 2H JPY 2.5/share） 33
Slide 35: Special Notes
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
Slide 36: Results and projections for Net Sales & Operating Income by segment
Results and projections for Net Sales & Operating Income by segment Net Sales Unit: Yen of Millions FY2011 FY2012 FY2012 1H Full Full Previous 1Q 2Q 3Q 4Q 1H 2H 1Q 2Q 1H 2H Year Year Forecast Optical Fiber 73 76 75 82 148 157 305 81 82 163 154 317 163 Cables Optical 147 137 147 156 283 303 586 158 1