Japan Aviation Electronics Industry, Limited · TSE:6807

Japan Aviation Electronics Industry — FY2018 Earnings Presentation

29 slides from Japan Aviation Electronics Industry's earnings presentation, Apr 24, 2019

  1. Slide 1: Financial Results for FY2018 and Prospects for FY2019

    Financial Results for FY2018 and Prospects for FY2019 April 24, 2019 6807 Japan Aviation Electronics Industry, Ltd. Copyright ©2019. Japan Aviation Electronics Industry. Ltd

  2. Slide 2: Agenda

    Agenda Technology to Inspire Innovation I. Financial Results for FY2018 II. Prospects and Strategy for FY2019 Copyright ©2019. Japan Aviation Electronics Industry. Ltd 2

  3. Slide 3: I. Financial Results for FY2018

    Technology to Inspire Innovation Ⅰ. Financial Results for FY2018 (From April 1, 2018 to March 31, 2019) Copyright ©2019. Japan Aviation Electronics Industry. Ltd 3

  4. Slide 4: Net Sales and Profits

    Net Sales and Profits Technology to Inspire Innovation (JPY in 100millions) FY2017 FY2018 Projections Year/Year (announced 1H 2H 1H 2H Change Jan, 2019) Net Sales 1,245 1,294 2,539 1,180 1,042 2,221 -318 87% 2,220 Operating 95 111 206 94 79 173 -33 84% Profit 172 to Net Sales 7.6% 8.6% 8.1% 7.9% 7.6

  5. Slide 5: Sales by Market Segment

    Sales by Market Segment Technology to Inspire Innovation ▶ Market Environment worsened from later half of 3Q Mobile devices: OEMs adjusted production Automotive: Slowdown of European and Chinese market Industrial & Infrastructure: Demand from Japanese manufactures decreased due to restrained capital

  6. Slide 6: Connector Business

    Connector Business Technology to Inspire Innovation (JPY in 100 millions) Sales by Market Segment Sales: 85% (of FY2018) 2,316 Year/Year ▶ Mobile Devices Change 85% 1,979 • Sales to customers in the US significantly decreased Mobile Devices 1,379 • Sales to Chinese smartphone OEMs 86% 1,049 increase

  7. Slide 7: UIS Business

    UIS Business Technology to Inspire Innovation (JPY in 100 millions) Sales by Market Segment Year/Year 86 Change Sales: 95% (of FY2018) 95% 81 ▶ Automotive (capacitive touch panel) • Slight decrease due to end of life of Automotive 47 96% 45 several models although the production of new film sensors

  8. Slide 8: Aerospace Business

    Aerospace Business Technology to Inspire Innovation Sales by Market Segment Year/Year 152 (JPY in 100 millions) Change Sales: 118% (of FY2018) 118% 129 ▶ Industrial & Infrastructure and Automotive Industrial & 134% 110 • Sales of oil drilling sensors was strong Infrastructure 82 and Automotive throu

  9. Slide 9: Capital Investment & Depreciation

    Capital Investment & Depreciation Technology to Inspire Innovation (JPY in 100 millions) Investment in productive 222 224 217 222 infrastructure (New Plant/Expansion) 23 5 176 26 • B building of 2nd plant 34 built in JAE Philippines 11 • New plant acquired in JAE Taiwan 196 201 212 188 • New plant b

  10. Slide 10: II. Prospects and Strategy for FY2019

    Technology to Inspire Innovation Ⅱ. Prospects and Strategy for FY2019 (From April 1, 2019 to March 31, 2020) Copyright ©2019. Japan Aviation Electronics Industry. Ltd 10

  11. Slide 11: FY2019 Environment and Strategy

    FY2019 Environment and Strategy Technology to Inspire Innovation ▶ Business Environment (Market premises)  Global Smartphone production to slightly decline from FY2019  Worldwide automobile production to be flat. In-vehicle electronic component market to expand stably by electrification and popula

  12. Slide 12: Prospects for FY2019

    Prospects for FY2019 Technology to Inspire Innovation (JPY in 100millons) FY2018 FY2019 1H 2H 1H Year/Year Change Projections Year/Year Change Net Sales 1,180 1,042 2,221 1,030 -150 87% 2,150 -71 97% Operating 94 79 173 77 -17 82% 185 12 107% Profit to Net Sales 7.9% 7.6% 7.8% 7.5% 8.6% Ordinary 106

  13. Slide 13: Sales by Market Segment

    Sales by Market Segment Technology to Inspire Innovation ▶ In the first half of FY2019, the same level of revenue as the previous half is expected due to the market environment ▶ In the second half, sales growth in the US smartphone customers, USB Type-C for mobile devices and Japanese OEMs for auto

  14. Slide 14: Prospects for Sales by Business Segment

    Prospects for Sales by Business Segment Technology to Inspire Innovation (JPY in 100millions) FY2018 FY2019 1H 1H Year/Year Change Projections Year/Year Change Connector 1,062 1,979 905 -157 85% 1,875 -104 95% UIS 43 81 45 2 104% 100 19 123% Aerospace 70 152 76 6 109% 165 13 108% Others 4 8 4 0 91%

  15. Slide 15: Connector Business Strategy [Mobile Devices]

    Connector Business Strategy［Mobile Devices］ Technology to Inspire Innovation (JPY in 100millions) Market Premises for FY2019 582  Sales of products with built-in procured 485 466 455 components continues to decrease  Recovery expected for other products by launch of new models from later part of 1

  16. Slide 16: Connector Business Strategy [Automotive①]

    Connector Business Strategy［Automotive①］ Technology to Inspire Innovation Strengthening efforts to Japanese and overseas customers centering on CASE ▶ Expanding Japanese OEM businesses Sales of automotive connector  Incorporate technology evolution of by customer(car maker) connected-cars, ADAS and

  17. Slide 17: Connector Business Strategy [Automotive②] ADAS

    Connector Business Strategy［Automotive②］ Technology to Inspire Innovation ▶ADAS (Advanced Driver Assistance System) Sales of ADAS Camera (JPY in 100millions)  The number of on-board cameras and sensors tends to increase due to the 200 Approx. 3.5 folds penetration of ADAS and automated driving 100

  18. Slide 18: Connector Business Strategy [Automotive③] EV

    Connector Business Strategy［Automotive③］ 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 H

  19. Slide 19: Connector Business Strategy [Industrial & Infrastructure]

    Connector Business Strategy ［Industrial & Infrastructure］ Technology to Inspire Innovation Pave the way for the growth after market recovery Sales of connector in ▶ Factory Automation Components Industrial & Infrastructure market  Focus on internal connectors in (JPY in 100millions ) addition to ex

  20. Slide 20: UIS Business Strategy

    UIS Business Strategy Technology to Inspire Innovation Return to growth focusing on touch panel ▶ Increase the range of new models Sales of UIS Business to expand the automotive touch (JPY in 100millions ) 100 panel business  Substantially increase film sensor 86 sales by launching new models 81 

  21. Slide 21: Aerospace Business Strategy

    Aerospace Business Strategy Technology to Inspire Innovation Continue to expand oil drilling business where the market is strong ▶ Sensors for Oil Drilling  Continue solid growth in FY2019 due to Sales of Oil drilling sensor strong oil drilling business (JPY in 100millions) 109% 50 173%  Expand sa

  22. Slide 22: Strategy for Productivity Improvement

    Strategy for Productivity Improvement Technology to Inspire Innovation Increase internal Production & manufacturing business innovation Cost reduction by increasing Business innovation by in-house manufacturing utilizing IoT and Robots ▶ Increase production capacity ▶ Speed-up operation improvement

  23. Slide 23: Strengthen R&D for mid-term growth

    Strengthen R&D for mid-term growth Technology to Inspire Innovation Realizing the next-generation mobility and IoT society connected with 5G by continuously developing technology of "connecting information" and "connecting people and devices" ▶ Formed an alliance with the Institute of Industrial Sci

  24. Slide 24: Technology to Inspire Innovation

    Technology to Inspire Innovation

  25. Slide 25: 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 April 24, 2019, and include risks and uncertainties. The targets no

  26. Slide 26: Sales by Market Segment

    Sales by Market Segment Technology to Inspire Innovation (JPY in 100millions) FY2017 FY2018 Year Projections /Year announced 1H 2H 1H 2H Change Jan, 2019 Mobile 692 686 1,379 582 466 1,049 76% 1,046 Devices Automotive 331 367 698 369 360 729 104% 736 Industrial & 154 173 327 171 153 324 99% 319 Infr

  27. Slide 27: Sales by Business Segment

    Sales by Business Segment Technology to Inspire Innovation (JPY in 100millions) FY2017 FY2018 Year Projections /Year announced 1H 2H 1H 2H Change Jan, 2019 Connector 1,143 1,173 2,316 1,062 917 1,979 85% 1,976 UIS 41 45 86 43 38 81 95% 82 Aerospace 57 72 129 70 82 152 118% 152 Others 4 4 9 4 4 8 98%

  28. Slide 28: Operating Profit by Business Segment

    Operating Profit by Business Segment Technology to Inspire Innovation (JPY in 100millions) FY2017 FY2018 Year/Year Change 1H 2H 1H 2H 112 121 233 106 87 193 -40 Connector 9.8% 10.3% 10.1% 10.0% 9.5% 9.8% 4 4 8 3 1 4 -4 UIS 9.2% 9.7% 9.4% 8.0% 2.6% 5.4% 1 6 7 7 11 18 11 Aerospace 1.6% 8.9% 5.7% 10.0%

  29. Slide 29: Prospects for Sales by Market Segment

    Prospects for Sales by Market Segment Technology to Inspire Innovation FY2018 FY2019 1H 1H Year/Year Change Projections Year/Year Change Mobile 582 1,049 455 -127 78% 940 -109 90% Devices Automotive 369 729 370 1 100% 780 51 107% Industrial & 171 324 145 -26 85% 305 -19 94% Infrastructure Others 57

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