JTEKT Corporation · TSE:6473
JTEKT — Q1 FY2019 Earnings Presentation
24 slides from JTEKT's earnings presentation, Aug 1, 2019
Slide 1: Financial Results For the First Quarter of Fiscal Year Ending March 2020
1 Financial Results For the First Quarter of Fiscal Year Ending March 2020 August 1, 2019 JTEKT CORPORATION
Slide 2: Agenda
2 １. Results for First Quarter of Fiscal Year Ending March 2020 ２. Forecasts for Fiscal Year 2019, Ending March 2020 ３. Appendix JTEKT CORPORATION
Slide 3: 1-1) Consolidated Performance
3 1-1) Consolidated Performance Sales and profits decreased in almost all regions, and each profit is halved, especially due to the significant decline in profits in Japan and China. （Ratio to Sales） FY2018 FY2019 Increase/ Increase/ （ Billions of Yen ) 1st Quarter 1st Quarter Decrease Decrease (%)
Slide 4: 1-2) Operating Profit Analysis
4 1-2) Operating Profit Analysis Although the increase in costs was at the planned level, operating profit was halved due to the drop in selling price levels could not be covered by the cost improvement and, in particular, the impact of Sales decrease. Operating profit: 9.1 billion yen decrease Fact
Slide 5: 1-3) Results by Business Units
5 1-3) Results by Business Units Mechanical Components Operating profit has been halved due to a drop in selling price levels, an increase in R&D expenses, and the sales of bearings decreased substantially in Japan, North America, and China. Machine Tools Sales and profits decreased due to decreased
Slide 6: 1-4) Financial Results by Company Location [1]
6 1-4) Financial Results by Company Location [1] Japan (billions of yen) Decrease in income/profits FY2018 FY2019 Increase/ ● Decreased sales in each business except 1st Quarter 1st Quarter Decrease ● STG. Sales 147.6 144.7 △ 2.8 ● Cost improvements can not cover a drop in ● selling price levels and
Slide 7: 1-5) Financial Results by Company Location [2]
7 1-5) Financial Results by Company Location [2] North America (billions of yen) FY2018 FY2019 Increase/ Decrease in income/profits 1st Quarter 1st Quarter Decrease ● Large decrease in profit due to decrease in Sales 79.6 78.8 △ 0.7 ● Bearing sales. OP profit ● Although profitability improvement of
Slide 8: 1-6) Financial Results by Company Location [3]
8 1-6) Financial Results by Company Location [3] China Decrease in income/profits (billions of yen) ● Sales decreased in all businesses, FY2018 FY2019 Increase/ ● even excluding foreign exchange losses. 1st Quarter 1st Quarter Decrease ● In the highly profitable STG business, Sales 39.5 33.8 △ 5.6 ●
Slide 9: Agenda
9 １. Results for First Quarter of Fiscal Year Ending March 2020 ２. Forecasts for Fiscal Year 2019, Ending March 2020 ３. Appendix JTEKT CORPORATION
Slide 10: 2-1) Forecasts for Business Environment
10 2-1) Forecasts for Business Environment World economy The impact of protectionist policies and BREXIT(Britain exiting from the EU) remains unclear. The slowing of the Chinese economy due to the intensifying trade friction between the United States and China has become increasingly apparent as
Slide 11: 2-2) Forecasts for Fiscal Year 2019
11 2-2) Forecasts for Fiscal Year 2019 Although there is a risk of sales decline, we will work to achieve the full-year profit target by taking measures such as minimizing the impact of sales decline through sales promotion activities in industrial machinery and after-market, and cost improvement in
Slide 12: 2-3) Operating Profit Analysis
12 2-3) Operating Profit Analysis Decline in selling price level and increased expenses will be covered by increased income and cost improvement. Plan increased profits due to the settlement of temporary loss. Operating profit: 3.4 billion yen increase Factors of profit decrease Factors of profit in
Slide 13: Appendix
13 １. Results for First Quarter of Fiscal Year Ending March 2020 ２. Forecasts for Fiscal Year 2019, Ending March 2020 ３. Appendix JTEKT CORPORATION
Slide 14: (Reference) Quarterly Result Trend
14 (Reference) Quarterly Result Trend OP profit (%) ( billions of yen ) 5.9% 5.6% 5.1% 4.2% 4.5% 3.6% 2.8% 395.2 376.3 382.7 360.2 366.5 362.2 Sales 329.5 OP profit 20.3 19.3 19.3 17.7 16.2 13.2 10.2 FY2016※ FY2017※ FY2018 FY2018 FY2018 FY2018 FY2019 1Q 2Q 3Q 4Q 1Q USD JPY108 JPY111 JPY109 JPY111 JP
Slide 15: (Reference) Sales Forecast by Business
15 (Reference) Sales Forecast by Business （ billions of yen ) FY2019 (Forecast) Increase/ Fy2018 Increase/ Decrease Full year (Actual) Full year Decrease (%) 1H (Forecast) 2H (Forecast) (Forecast) ステ アsystems Steering リ ング 770.7 378.5 389.5 768.0 △ 2.7 ＋ 0.4% Mechanical components ベア リング Drivelines
Slide 16: (Reference) Sales Forecast by Region
16 (Reference) Sales Forecast by Region （ billions of yen ) FY2019 (Forecast) Increase/ FY2018 Increase/ Full year (Actual) Decrease Decrease 1H (Forecast) 2H (Forecast) Full uear (Forecast) (%) ステア リング Japan 619.6 307.0 315.5 622.5 ＋ 2.8 ＋ 0.5% ベ アEurope リ ン グ 231.2 104.0 108.0 212.0 △ 19.2 △ 8.3%
Slide 17: (Reference) Financial Results by Business (Mechanical Components)
(Reference) Financial Results by Business 17 (Mechanical Components) ( billions of yen ) FY2018 FY2019 Increase/ Increase/ Mechanical components 1st Quarter 1st Quarter Decrease Decrease (%) ステ ア systems Steering リ ング 売 Sales 上 高 189.5 190.0 ＋ 0.5 ＋ 0.3% ベア リ ン グ 売 Sales Drivelines 上 高 38.9 38.1 △ 0
Slide 18: (Reference) Financial Results by Business (Machine Tools & Others)
(Reference) Financial Results by Business 18 (Machine Tools & Others) ( billions of yen ) FY2018 FY2019 Increase/ Increase/ Machine tools and others 1st Quarter 1st Quarter Decrease Decrease (%) スMachine テ ア リtools ン グ 売 Sales 上 高 40.1 36.8 △ 3.3 △ 8.3% 駆 Others 動 売 Sales 上 高 0.4 0.4 △ 0.0 △ 2.2% 売
Slide 19: (Reference) Financial Results by Region (Japan)
19 (Reference) Financial Results by Region (Japan) ( billions of yen) FY2018 2011年度 FY2019 Increase/ Increase/ Japan 増 減 額 増 減 額 1st Quarter 第2四半期 1st Quarter Decrease Decrease (%) 売 Sales 上 高 147.6 144.7 △ 2.8 △ 1.9% 営OP 業profit 利 益 4.8 1.0 △ 3.7 △ 77.7% OP profit (%) 3.3% 0.7% Quarterly Trend (bil
Slide 20: (Reference) Financial Results by Region (Europe)
20 (Reference) Financial Results by Region (Europe) ( billions of yen) FY2018 2011年度 FY2019 Increase/ Increase/ Europe 増 減 額 増 減 額 1st Quarter 第2四半期 1st Quarter Decrease Decrease (%) 売上高 Sales 61.2 57.2 △ 4.0 △ 6.6% 営OP 業profit 利 益 △ 0.1 △ 0.6 △ 0.4 - OP profit (%) △ 0.3% △ 1.1% Quarterly Trend (bil
Slide 21: (Reference) Financial Results by Region (North America)
(Reference) Financial Results by Region 21 (North America) ( billions of yen ) North FY2018 2011年度 FY2019 Increase/ Increase/ 増 減 額 増 減 額 America 1st Quarter 第2四半期 1st Quarter Decrease Decrease (%) 売 Sales 上 高 79.6 78.8 △ 0.7 △ 1.0% 営OP 業profit 利 益 2.2 2.2 △ 0.0 △ 1.1% OP profit (%) 2.8% 2.8% Quarte
Slide 22: (Reference) Financial Results by Region (Asia/Oceania)
(Reference) Financial Results by Region 22 [Asia/Oceania (Including India)] ( billions of yen) Asia/Oceania FY2018 2011年度 FY2019 Increase/ Increase/ 増 減 額 増 減 額 (including India) 1st Quarter 第2四半期 1st Quarter Decrease Decrease (%) 売 上 Sales 高 41.7 41.2 △ 0.4 △ 1.2% 営 OP 業 profit 利 益 3.7 3.3 △ 0.3 △
Slide 23: (Reference) Financial Results by Region (China)
23 (Reference) Financial Results by Region (China) ( billions of yen) FY2018 2011年度 FY2019 Increase/ Increase/ China 増 減 額 増 減 額 1st Quarter 第2四半期 1st Quarter Decrease Decrease (%) 売 Sales 上 高 39.5 33.8 △ 5.6 △ 14.4% 営OP 業profit 利 益 6.7 3.7 △ 2.9 △ 44.1% OP profit (%) 17.1% 11.2% Quarterly Trend (bi
Slide 24: (Reference) Financial Results by Region (South America and Others)
(Reference) Financial Results by Region 24 [South America and Others] ( billions of yen) South America FY2018 2011年度 FY2019 Increase/ Increase/ 増 減 額 増 減 額 & Others 1st Quarter 第2四半期 1st Quarter Decrease Decrease (%) 売 上 Sales 高 6.6 6.3 △ 0.2 △ 4.1% 営 OP 業 profit 利 益 0.4 0.2 △ 0.1 △ 40.7% OP profit