JTEKT Corporation · TSE:6473
JTEKT — Q1 FY2024 Earnings Presentation
30 slides from JTEKT's earnings presentation, Aug 2, 2024
Slide 1: Financial results for the First Quarter of fiscal year ending March 2025
1 Financial results for the First Quarter of fiscal year ending March 2025 August 2 nd, 2024 JTEKT CORPORATION
Slide 2: Overview of Financial results
Overview of Financial results 2 ■ Revenue increased due to favorable exchange rate despite weak sales in all regions. Result ■ Despite cost reduction activities and favorable exchange rate, Business profit decreased due to weak sales and cost inflation while sales price up has not been fully conclud
Slide 3: Contents
Contents 3 １．Results for the First Quarter of fiscal year ending March 2025 P４ ２．Forecasts for Fiscal Year ending March 2025 P９ ３．Appendix P１6 JTEKT CORPORATION
Slide 4: 1-1) FY2024 1Q Results – Consolidated performance
1-1) FY2024 1Q Results – Consolidated performance 4 ■ Revenue increased due to favorable exchange rate despite sales volume decrease mainly for automotive customers. ■ Despite cost reduction activities and favorable exchange rate, Business profit decreased due to weak sales and cost inflation while
Slide 5: 1-2) FY2024 1Q Results – Business profit analysis
1-2) FY2024 1Q Results – Business profit analysis 5 ■ Despite cost reduction activities and favorable exchange rate, business profit decreased due to weak sales volume and cost inflation while sales price up has not been fully concluded yet. Unit：Billion of yen Loss costs in North America, Negative
Slide 6: 1-3) FY2024 1Q Results – by Region
1-3) FY2024 1Q Results – by Region 6 ■ Business profit decreased due to weak sales in China and loss costs caused by low productivity related to labor shortage in North America. Revenue Business profit Unit：Billion of yen Unit：Billion of yen Ratio to revenue 8.3% 7.0% 7.1% 172.8 172.7 4.2% 4.8% 1.7%
Slide 7: 1-4) FY2024 1Q Results – by Business unit
1-4) FY2024 1Q Results – by Business unit 7 ■ Business profit decreased due to weak sales volume in STG and Industrial & Bearings. Revenue Business profit Unit：Billion of yen Unit：Billion of yen Ratio to revenue 8.2% 6.4% 215.1 221.2 3.6% 2.5% 2.4% 2.5% 1.0% 1.4% 5.4 109.9 3.2 3.4 98.0 2.7 2.8 89.7
Slide 8: Contents
Contents 8 １．Results for the First Quarter of fiscal year ending March 2025 P４ ２．Forecasts for Fiscal Year ending March 2025 P９ ３．Appendix P１6 JTEKT CORPORATION
Slide 9: 2-1) FY2024 Forecast – Consolidated performance
2-1) FY2024 Forecast – Consolidated performance 9 ■ We maintain original forecast due to market environment remains uncertain such as production forecast in automotive OEMs, ■ We will overcome various risks and achieve the forecasts by cost reduction activities and sales price up to recover cost inf
Slide 10: 2-2) FY2024 Forecast – Business profit analysis
2-2) FY2024 Forecast – Business profit analysis 10 ■ Overcoming inflation impact and sales price down by cost reduction activities. ■ Ensuring cost reduction activities and sales price up for inflation to achieve the forecast. Unit：Billion of yen JTEKT CORPORATION
Slide 11: 2-3) FY2024 Forecast – by Region
2-3) FY2024 Forecast – by Region 11 ■ Business profit increase in North America due to sales increase and productivity improvement. Business profit decrease in China due to weak sales. Revenue Business profit Unit：Billion of yen Unit：Billion of yen Ratio to revenue 9.6% 7.6% 8.5% 735.7 756.0 4.3% 5.
Slide 12: 2-4) FY2024 Forecast – by Business unit
2-4) FY2024 Forecast – by Business unit 12 ■ Business profit decrease in STG due to strategic investment. Business profit increase in Machine tools with strong sales demand, especially in North America. Revenue Business profit Unit：Billion of yen Ratio to revenue Unit：Billion of yen 9.6% 9.5% 912.0
Slide 13: 2-5) Return to shareholders
2-5) Return to shareholders 13 ■ The dividend forecast for FY2024 remains unchanged at 30 yen per year. (Interim : 15 yen , Year-end : 15 yen) Divinded payout ratio(%) 685.2 55.4 30.3 29.8 30.0 30.7 Payout 27.4 29.6 29.7 29.4 Payout ratio ratio 30% Unit : yen per share Upper row Year-end dividend Lo
Slide 14: 2-6) Updated Medium-term Business Plan
2-6) Updated Medium-term Business Plan 14 ■ Updated Mid-term Business plan will be disclosed on 27 th August. Updated Mid- term plan will be disclosed soon. J-Nyan TEK-NYAN JTEKT CORPORATION
Slide 15: Contents
Contents 15 １．Results for the First Quarter of fiscal year ending March 2025 P４ ２．Forecasts for Fiscal Year ending March 2025 P９ ３．Appendix P１6 JTEKT CORPORATION
Slide 16: 3-1) Management indicators
3-1) Management indicators 16 Cash Flow statement Capital Efficiency Indicators Upper row Cash flows from operating activities ROE ROA ROIC (%) Lower row Cash flows from investing activities Unit : Billion of yen FCF 154.4 5.9 5.8 5.4 5.5 5.3 91.7 3.8 78.2 67.0 4.3 83.1 3.5 26.1 39.2 41.7 1.5 2.6 2.
Slide 17: 3-2) Management indicators
3-2) Management indicators 17 Capital expenditures Depreciation & amortization R&D expenses Upper row Jul-Mar Unit : Billion of yen Unit : Billion of yen Unit : Billion of yen Ratio to revenue Lower row Apr-Jun 4.2% 95.0 3.3% 3.3% 75.0 3.1% 3.1% 72.3 69.4 66.9 63.0 64.0 58.9 65.1 62.3 52.1 51.3 47.5
Slide 18: 3-3) Management indicators
3-3) Management indicators 18 Inventories Interest-bearing debt / Cash reserves Inventory turnover month Unit : Billion of yen Left bar Interest-bearing debt NET DE ratio Right bar Cash reserves Unit : Billion of yen 1.8 1.7 1.7 1.6 1.8 0.30 281.0 0.22 0.20 267.0 0.09 0.08 247.5 229.0 286.2 261.7 25
Slide 19: 3-4-1) Financial statements
3-4-1) Financial statements 19 Assets Liabilities and equity Unit : Billion of yen Unit : Billion of yen FY2024 Liabilities FY2024 Assets FY2023 Change FY2023 Change 1Q and equity 1Q Cash and cash Trade and other 167.0 167.6 ＋0.6 388.9 389.0 ＋0.1 equivalents payables Trade and other Interest-bearing
Slide 20: 3-4-2) Financial statements
3-4-2) Financial statements 20 Consolidated Profit and Loss statement Consolidated Cash Flow statement Unit : Billion of yen Unit : Billion of yen FY2024 FY2024 FY2023 Change FY2023 Change 1Q 1Q Cash flows from Revenue 445.6 464.0 ＋18.3 operationg activities 41.6 26.1 -15.4 Cash flows from Business
Slide 21: 3-5-1) Performance comparison – FY2024 1Q Results (by Region)
3-5-1) Performance comparison – FY2024 1Q Results (by Region) 21 Unit:Billion of yen FY2023 FY2024 Foreign FY2024 Change excluding Region change 1Q 1Q exchange 1Q foreign exchange Japan 172.8 172.7 +0.0 -0.0% - 172.7 +0.0 -0.0% North America 111.0 128.8 +17.8 +16.0% ＋15.5 113.2 +2.2 +2.0% Europe 55.
Slide 22: 3-5-2) Performance comparison – FY2024 1Q Results (by Business unit)
3-5-2) Performance comparison – FY2024 1Q Results (by Business unit) 22 FY2023 FY2024 Foreign FY2024 Change excluding Business unit change 1Q 1Q exchange 1Q foreign exchange Steering Systems 215.1 221.2 ＋6.1 +2.9% ＋15.1 206.1 -8.9 -4.2% Drivelines 98.0 109.9 ＋11.8 +12.1% ＋4.2 105.7 ＋7.6 +7.8% Automo
Slide 23: 3-6-1) Quarterly result trend – by Region
3-6-1) Quarterly result trend – by Region 23 Unit : Billion of yen 1Q 2Q 3Q 4Q FY2023 Revenue Business profit Revenue Business profit Revenue Business profit Revenue Business profit Japan 172.8 2.8 1.7% 195.7 14.2 7.3% 196.1 10.0 5.1% 171.0 4.3 2.5% North America 111.0 4.7 4.2% 113.8 -0.5 -0.5% 114.
Slide 24: 3-6-2) Quarterly result trend – by Business unit
3-6-2) Quarterly result trend – by Business unit 24 Unit : Billion of yen 1Q 2Q 3Q 4Q FY2023 Revenue Business profit Revenue Business profit Revenue Business profit Revenue Business profit Steering Systems 215.1 5.4 0.3% 223.1 7.0 0.3% 236.7 9.8 0.4% 237.0 7.6 0.3% Drivelines 98.0 2.3 0.2% 113.5 2.7
Slide 25: 3-7-1) Business profit analysis – Steering Systems / Drivelines
3-7-1) Business profit analysis – Steering Systems / Drivelines 25 Unit : Billion of yen Steering Systems Unit : Billion of yen Drivelines JTEKT CORPORATION
Slide 26: 3-7-2) Business profit analysis – Industrial & Bearings / Machine tools
3-7-2) Business profit analysis – Industrial & Bearings / Machine tools 26 Unit : Billion of yen Industrial & Bearings Unit : Billion of yen Machine tools *Others excluded JTEKT CORPORATION
Slide 27: 3-8-1) Performance comparison – FY2024 Forecasts (by Region)
3-8-1) Performance comparison – FY2024 Forecasts (by Region) 27 Unit:Billion of yen Foreign Change excluding Region FY2023 FY2024 Change FY2024 exchange foreign exchange Japan 735.7 756.0 ＋20.2 +2.8% ＋0.0 756.0 ＋20.2 +2.8% North America 466.5 497.0 ＋30.4 +6.5% ＋5.1 491.9 ＋25.3 +5.4% Europe 239.5 216
Slide 28: 3-8-2) Performance comparison – FY2024 Forecasts (by Business unit)
3-8-2) Performance comparison – FY2024 Forecasts (by Business unit) 28 Unit:Billion of yen Foreign Change excluding Business unit FY2023 FY2024 Change FY2024 exchange foreign exchange Steering 912.0 906.0 -6.0 -0.7% -0.8 906.8 -5.2 -0.6% Drivelines 432.3 454.0 ＋21.6 +5.0% ＋1.2 452.8 ＋20.4 +4.7% Auto
Slide 29: 3-9) Profit trends
3-9) Profit trends 29 Equity ratio(%) 46.3 48.4 49.7 42.3 43.6 42.0 42.4 42.7 45.0 40.1 Left bar Business profit Unit : Billion of yen Right bar Profit attributable to owners of parent company 81.9 77.4 81.3 72.8 75.0 71.7 62.6 48.6 47.5 49.6 42.3 37.5 40.2 34.2 35.0 27.2 20.6 15.9 0.8 ▲3.7 FY2015 F
Slide 30: Thank You
30 Thank You J-Nyan TEK-NYAN 【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