Jtekt Corporation · TSE:6473
Jtekt — FY2015 Earnings Presentation
95 slides from Jtekt's earnings presentation, May 12, 2016
Slide 1: Presentation for Fiscal Year Ending March 2016
1 Presentation for Fiscal Year Ending March 2016 May 12, 2016 JTEKT Corporation JTEKT Corporation
Slide 2: Agenda
2 1. Results for Fiscal Year 2015 2. Forecasts for Fiscal Year 2016 3. Progress of Mid-Term Management Plan JTEKT Corporation
Slide 3: 1-1) Consolidated Performance
3 1-1) Consolidated Performance The highest sales & income in our history (100 million yen) Increase/ Increase/ FY 2014 FY 2015 Decrease Decrease (%) Net Sales Operating Income Ordinary Income Profit attributable to owners of parent 110 yen/USD 120 yen/USD + 10 yen Exchange rate 138 yen/EUR 132 yen/
Slide 4: 1-2) Operating Income Change Analysis
4 1-2) Operating Income Change Analysis Increased costs including costs for solid future foundation and fixed costs are offset by cost improvements Operating Income +77 Negative impact ᇞ156 (100 million yen) Positive impact +234 Excludes Exchange Rate Impact FY 2014 FY 2015 Improvement Selling Price
Slide 5: 1-3) Financial Results by Product (Mechanical Components) [1]
1-3) Financial Results by Product 5 (Mechanical Components) [1] All business segments, including steering systems business recorded 12.9% higher operating income from last period (100 million yen) Increase/ Increase/ Mechanical Components FY 2014 FY 2015 Decrease Decrease (%) Steering Net Sales Syst
Slide 6: 1-4) Financial Results by Product (Mechanical Components) [2]
1-4) Financial Results by Product 6 (Mechanical Components) [2] (100 million yen) FY 2014 FY 2015 Increase/ Increase both in sales and profit Decrease Net Sales Both sales and profit increased mainly Operating due to sales growth for steering Income systems in China, North America and Operating Euro
Slide 7: 1-5) Financial Results by Product (Machine Tools & Others) [1]
1-5) Financial Results by Product 7 (Machine Tools & Others) [1] Sales increased due to sales growth in Japan, but profit decreased due to impact mainly by sales mix (100 million yen) Increase/ Increase/ Machine Tools/Other FY 2014 FY 2015 Decrease Decrease (%) Machine Tools Net Sales Other Net Sale
Slide 8: 1-6) Financial Results by Product (Machine Tools & Others) [2]
1-6) Financial Results by Product 8 (Machine Tools & Others) [2] (100 million yen) Increase/ FY 2014 FY 2015 Decrease Increase both in sales and profit Net Sales In spite of sales growth in Japan, profit Operating was decreased due to impact mainly Income by sales mix Operating Income (%) Net Sales
Slide 9: 1-7) Financial Results by Region [1]
9 1-7) Financial Results by Region [1] Net Sales Operating Income Rate Japan Operating Income Increase/ (100 million yen) FY 2014 FY 2015 Decrease Net Sales Operating Income Operating Income (%) Increase both in sales and profit Sales slightly increased while profit decreased by sales mix FY 2007 FY
Slide 10: 1-8) Financial Results by Region [2]
10 1-8) Financial Results by Region [2] Net Sales Operating Income Rate North America Operating Income Increase/ (100 million yen) FY 2014 FY 2015 Decrease Net Sales Operating Income Operating Income (%) Increase both in sales and profit In addition to sales growth in all business segments, cost imp
Slide 11: 1-9) Financial Results by Region [3]
11 1-9) Financial Results by Region [3] Net Sales Operating Income Rate China Operating Income (100 million yen) Increase/ FY 2014 FY 2015 Decrease Net Sales Operating Income Operating Income (%) Increase both in sales and profit Both sales and profit increased due to steady sales in automobile as w
Slide 12: Agenda
12 1. Results for Fiscal Year 2015 2. Forecasts for Fiscal Year 2016 3. Progress of Mid-Term Management Plan JTEKT Corporation
Slide 13: 2-1) Forecast for External Environment
13 2-1) Forecast for External Environment Forecast for External Environment Continuing strong yen Sustainable in developed countries • US Market continues to expand at a moderate pace • Modest recovery continues in European Market Chinese Market gradually slowing Emerging countries except Ch
Slide 14: 2-2) Forecasts for Fiscal 2016
14 2-2) Forecasts for Fiscal 2016 Both sales and profit are expected to decrease due to significant impact of exchange rate fluctuation (strong yen) (100 million yen) FY 2016 (Forecast) Increase/ FY 2015 Increase/ Decrease (Actual) Decrease (%) 1st Half 2nd Half Full Year Net Sales Operating Income
Slide 15: 2-3) Operating Income Change Analysis
15 2-3) Operating Income Change Analysis Profit is expected to decrease due to increase in R&D expense, such as for ADAS and IoE, and expenses related to retirement benefits, as well as impact of exchange rate fluctuation (strong yen) Operating Income 219 (100 million yen) Negative impact ᇞ385 Posi
Slide 16: 2-4) Net Sales by Product
16 2-4) Net Sales by Product (100 million yen) FY 2016 (Forecast) Increase/ FY 2015 Increase/ Decrease (Actual) Decrease (%) 1st Half 2nd Half Full Year Steering Mechanical Components Systems Driveline Components Bearings [ Total ] Machine Machine Tools/Other tools Others [ Total ] [ Total Net Sales
Slide 17: 2-5) Net Sales by Region
17 2-5) Net Sales by Region (100 million yen) FY 2015 FY 2016 (Forecast) Increase/ Increase/ Decrease (Actual) Decrease (%) 1st Half 2nd Half Full Year Japan Europe North America Asia/Oceania China South America/ Others [ Total Net Sales ] JTEKT Corporation
Slide 18: Agenda
18 1. Results for Fiscal Year 2015 2. Forecasts for Fiscal Year 2016 3. Progress of Mid-Term Management Plan JTEKT Corporation
Slide 19: Contents
19 3) Progress of Mid-term Management Plan CONTENTS 1. Review (FY 2014 and FY 2015) 2. Progress Status of Mid-term Management Plan 1) Steering Systems Business Operations 2) Drivelines Business Operations 3) Bearing Business Operations 4) Machine Tools & Mechatronics Business Operations (Enhancement
Slide 20: 1. Review
20 3) Progress of Mid-term Management Plan 1. Review (FY 2014 and FY 2015) Summary Profit & Loss Trend Management Index (Consolidated) JTEKT Corporation
Slide 21: 3-1) Review – Summary
21 3-1) Review – Summary [Review of FY 2014 and FY 2015] Mid-term Management Plan started in April 2014. - Rolling over every year while considering what can be done right now for 5 years later - Major activities (Sales method) Solidifying footing - Enhanced cooperation with customers at development
Slide 22: 3-1) Review – Profit & Loss Trend (Market rate)
22 3-1) Review – Profit & Loss Trend (Market rate) • The highest sales & income in JTEKT history at market rates • Both sales and profit in FY 2016 are expected to decrease due to the impact of exchange fluctuation Net Sales Operating Income Rate (actual and past FY Mid-term Plan) Market Rate (100 m
Slide 23: 3-1) Review – Profit & Loss Trend (Management rate)
3-1) Review – Profit & Loss Trend 23 (Management rate) <Business structure evaluation with fixed exchange rate> (Management rate – USD: 95 yen, EUR: 130 yen) • Business structure is improving well, but a difference from the original perspective is recognized (leveling off) • Review the measures, and
Slide 24: 3-1) Review – Management Index (Consolidated)
24 3-1) Review – Management Index (Consolidated) Inventory Interest-bearing Debt Interest-bearing Inventory Inventory turnover months D/E Ratio Debt 1,500 or less FY 2012 FY 2013 FY 2014 FY 2015 FY 2019 FY 2012 FY 2013 FY 2014 FY 2015 FY 2019 FY 2012 FY 2013 FY 2014 FY 2015 FY 2019 FY 2012 FY 2013 F
Slide 25: 1) Steering Systems Business Operations
25 3-2) Progress Status of Business Operations 1) Steering Systems Business Operations JTEKT Corporation
Slide 26: 3-2-1) Roles & Aims
26 3-2-1) Roles & Aims Roles & Aims With “World No. 1” & “Only One” spirit, continually deliver value to our customers and keep evolving as the all-time leading supplier in the market Mid-term Maintain the top global share for target Share 25% automotive steering systems Steering systems Priority ac
Slide 27: 3-2-1) Forecast to Accomplish 2018 Mid-term Plan
27 3-2-1) Forecast to Accomplish 2018 Mid-term Plan Market share forecast for FY 2018 *According to JTEKT research based on market data New orders in FY 2015 JTEKT Mid-term plan target Other companies New 25% share achieved orders Results of FY 2015 activities for 2018 market receiving orders 97,241
Slide 28: 3-2-1) Forecast to Accomplish 2018 Mid-term Plan
28 3-2-1) Forecast to Accomplish 2018 Mid-term Plan Sales/profit forecast for FY 2018 (Based on management rate) Both sales and profit in 2018 will steadily increase, but 2020 will not reach the original numeric value perspective. Sales Steady increase expected Sales Slow market growth (compared to
Slide 29: 3-2-1) Global Steering Market Trend
29 3-2-1) Global Steering Market Trend *According to JTEKT research based on market data Planned Mid-term (2014) Latest data (2015) Million units/year Million units/year 120 120 100 Entire automotive market 100 UKW Entire automotive market 80 80 MS HPS 60 60 H-EPS 40 40 RP-EPS FY 2018 FY 2018 20 EPS
Slide 30: 3-2-1) Positions of JTEKT EPS Products in the Industry
3-2-1) Positions of JTEKT EPS Products 30 in the Industry *According to JTEKT research based on market data C-EPS (column type) DP-EPS (dual pinion type) RP-EPS (rack parallel type) Thou/year Thou/year Thou/year 50,000 50% 20,000 31% 35% 20,000 10% 12% Share 41% Share Share 30% 10% 40,000 40% 42.0%
Slide 31: 3-2-1) FY 2015 review
31 3-2-1) FY 2015 review FY 2015 action items and review 2016 activities Sales method PM System strengthening mechanism has taken Strengthen PM System Achievements Innovation root. (Project Management) Sales • Promotion of frontloading to D3 Intense market competition Establish PM System for
Slide 32: 2) Drivelines Business Operations
32 3-2) Progress Status of Business Operations 2) Drivelines Business Operations JTEKT Corporation
Slide 33: 3-2-2) Purpose of Establishment of Driveline Business HQ
3-2-2) Introduction - Purpose of Establishment of 33 Driveline Business HQ - Automotive Systems Business HQ was divided into two sections for steering systems and drivelines, establishing Driveline Business HQ (Apr. 1, 2016). Grow the driveline business as a core business. Business HQs Driveline Bus
Slide 34: 3-2-2) Introduction of Driveline Business HQ Products
3-2-2) Introduction of Driveline Business 34 HQ Products Hydraulic equipment Drivelines (DL) T/M Oil Pump CVJ Propeller shaft Electrical Oil Pump (EOP) for idling stop Valve equipment for fuel-cell vehicles Torque Control Device (TCD) Valve Regulator" Torsen Electronically controlled 4WD coupling (I
Slide 35: 3-2-2) Roles & Aims
35 3-2-2) Roles & Aims With “World No. 1” & “Only One” spirit, continually deliver value to our customers and keep evolving as the all-time leading supplier in the market Mid-term target Advance to be a leading global company as a supplier of Drivelines driveline systems Priority activities • Streng
Slide 36: 3-2-2) Forecast to Accomplish 2018 Mid-term Plan
36 3-2-2) Forecast to Accomplish 2018 Mid-term Plan Severe external environment continues from 2016 to 2020. (Based on management rate) Sales • Concentration on CVJ business reduces workload • Delayed modularization reduces ITCC workload in North America. Aim at advance to be a leading Profit • Redu
Slide 37: 3-2-2) FY 2015 review
37 3-2-2) FY 2015 review Action items in FY 2015 and review 2016 activities Strengthen global business capabilities Sales method PM System strengthening mechanism has Achievements Innovation taken root. • Continue PM System enhancement Sales EU market survey activity (MS-EDM) • Overseas market r
Slide 38: 3-2-2) Concept of product potential strengthening
38 3-2-2) Concept of product potential strengthening Role & Aim: Make use of JTEKT advantages in business operations to produce products superior to those of other companies, contributing to improvement of added values of vehicles. To be a supplier chosen by customers [STEP 3] Proposal of next-gener
Slide 39: 3) Bearing Business Operations Strategies
39 3-2) Progress Status of Mid-term Management Plan 3) Bearing Business Operations Strategies JTEKT Corporation
Slide 40: 3-2-3) Target image
40 3-2-3) Target image Long-term vision for bearing operations Continue creating value, impress customers, and be praised for business operations — Lift the "Koyo" brand to be the top brand in the world — • Be a highly profitable business unit by transitioning from Bearing quantity to quality Operat
Slide 41: 3-2-3) Forecast to Accomplish 2018 Mid-term Plan
3-2-3) Forecast to Accomplish 2018 Mid-term Plan 41 (Management rate) ＜Actions for priority tasks＞ Analyze internal/external environmental factors ＜Realize strategies by for the past best and establish a structure that industry/bearing type can deal with changes flexibly (carry out Add extra profit
Slide 42: 3-2-3) Story for Achieving Mid-Term Management Plan
42 3-2-3) Story for Achieving Mid-Term Management Plan Actions for priority tasks （structural reform, production, sales, engineering) × Strategies by industry/bearing type FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 ③, ④：Reform sales method/Enhance industrial bearing business/ Harvest Structural refor
Slide 43: 3-2-3) FY 2014/FY 2015 Review
43 3-2-3) FY 2014/FY 2015 Review FY 2014/FY 2015 Review and Challenges Actions to tasks Sales method•• Profit Determined directionality of each base Achieve ments Structural improvement through structural reform reform • Accelerate and accomplish structural • Delay in reformation of Kokubu Plant as
Slide 44: 3-2-3) Priority Measures in Mid-term Plan
44 3-2-3) Priority Measures in Mid-term Plan Priority <Realization of strategies for industry/product type> Measures in For industry Mid-term Plan Industrial/ For product type * HUB (hub unit) Automotive aftermarket TRB (Tapered Roller Bearing) NRB (Needle Roller Bearing) Steel, Wind power, Chassis,
Slide 45: Actions for Priority Tasks and Corresponding Actions
45 Actions for Priority Tasks and Corresponding Actions (Structural reform, production, sales, engineering) JTEKT Corporation
Slide 46: 3-2-3) Priority Tasks (Structural Reform)
46 3-2-3) Priority Tasks (Structural Reform) ◆Structural reform ＜Focus on structural reform by region＞ Europe China Japan N. America India ASEAN Reflection, Tasks 1) Delay in the action to strengthen Kokubu Plant as a flagship plant for bearings for industrial machinery applications in spite of the
Slide 47: 3-2-3) Priority Tasks (Structural Reform)
47 3-2-3) Priority Tasks (Structural Reform) Actions for achieving profitable business in 2018 1) Business reorganization in Japan (Kokubu Plant: Profit improvement of Kokubu Plan as a flagship plant for industrialmachine bearings and competitiveness improvement due to HUB/TRB forging line transfer)
Slide 48: 3-2-3) Priority Tasks (Structural Reform)
48 3-2-3) Priority Tasks (Structural Reform) Business reorganization in Japan Operating income plan, result (index) Completion of Kameyama plant's new building Index HUB model plant Cost competitiveness +100 improvement, logistics improvement, energy saving, working environment improvement March 1
Slide 49: 3-2-3) Priority Tasks (Structural Reform)
49 3-2-3) Priority Tasks (Structural Reform) Structural reform map of bearing plants in Europe Operating income Enhance profit foundation mainly by reorganizing NRB plant Index plan, result (index) +300 Specialized in HUB units Organization, KBE logistics ■ TRB line +200 Review transfer Maromme pla
Slide 50: 3-2-3) Priority Tasks (Structural Reform)
50 3-2-3) Priority Tasks (Structural Reform) ◆ Structural reform map of bearing plants in China Operating income plan, Reorganization of SBB plants for each size and result (index) Index response to increasing NRB demand Dalian +400 KDC ■ +300 Aggregation by size +200 Aggregation by size WKB +100 ■■
Slide 51: 3-2-3) Priority Tasks (Productivity/Production engineering capability)
3-2-3) Priority Tasks (Productivity/ 51 Production engineering capability) １) Enhance competitiveness 【Smart Factory, IoE】 ・Enhance operational availability Implement self-developed IoE system and productivity in JTEKT plants 1.Maintenance IoE (control the sign of the end of life & abnormality) ２) R
Slide 52: 3-2-3) Priority Tasks (Sales)
3-2-3) Priority Tasks (Sales) 52 Sales figure of industrial/aftermarket regarding the figure of 2014 as 100 1) Action for important customers by Industry 120 100 80 2014 2015 2018 (Index) Industrial strategies and new product development in mid- and long term Horizontal deployment to other customers
Slide 53: 3-2-3) Priority Tasks (Technology Development)
53 3-2-3) Priority Tasks (Technology Development) Common 1) Enhance global development system (in particular, NRB business efficiency improvement and strengthening) 2) Enhance development of high-value-added products (select priority action areas and execute development roadmap) 3) Develop product
Slide 54: Realization of strategies for industry/product type
54 Realization of strategies for industry/product type JTEKT Corporation
Slide 55: 3-2-3) Realizing Strategies for Industry type
55 3-2-3) Realizing Strategies for Industry type Actions to enhance business in the industrial machine field Enhance business operations for industrial machines to promote well-balanced growth and increase profits Reform Kokubu Plant as a flagship plant for industrial machine bearings (strengthen
Slide 56: 3-2-3) Strategies for Industry type (Steel, Wind power)
56 3-2-3) Strategies for Industry type (Industrial Machines) Strategies for each priority application Sales amount target (index) Actions for steel, wind power Steel • Maintain the top share in Japan (Steel) • Establish technologies for further increasing performance level (long life, lower temper
Slide 57: 3-2-3) Strategies for Industry type (Agricultural/construction)
57 3-2-3) Strategies for Industry type (Industrial Machines) ◆ Strategies for each priority application Sales amount target (index) Actions for agricultural/construction machine construction Agricultural/ machine • Further improve reliability by highly functional technologies • Enhance actions for l
Slide 58: 3-2-3) Strategies for Industry type (Machine tools)
58 3-2-3) Strategies for Industry type (Industrial Machines) ◆ Strategies for each priority application Sales amount target (index) Actions for machine tools Machine tools • Contribute to high efficiency processing by highly functional technologies • Improve product capability by unitization technol
Slide 59: 3-2-3) Realization of Strategy by Bearing Type
59 3-2-3) Realization of Strategy by Bearing Type ◆ Actions for four major bearing types (TRB, HUB, NRB, SBB) Increase profit by realizing a strategy by bearing type (mainly for automotive applications) Develop and introduce high-value-added products in four major bearing types Sales ratio of four m
Slide 60: 3-2-3) Strategy by Bearing Type (TRB)
60 3-2-3) Strategy by Bearing Type (TRB) • Deploy innovative manufacturing methods used in Japan globally • Shift from globally identical specifications to optimum specifications for each region 地域 Region 2015 2016 2017 2018 2019 2020 Profit rate (index) Index ⾼速ライン導⼊ Introduce high-speed production
Slide 61: 3-2-3) Strategy by Bearing Type (HUB)
61 3-2-3) Strategy by Bearing Type (HUB) • B-HUB: Strengthen cost competitiveness T-HUB: Expand sales • Develop low-torque technologies and hub units for ADAS Profit rate (index) ｾｸﾞﾒﾝﾄ Segment 2015 2016 2017 2018 2019 2020 Index Mini-sized ｺﾝﾊﾟｸﾄ化ﾗｲﾝ開発 Develop compact line 導⼊ Introduction ｺﾝｾﾌﾟﾄ展開
Slide 62: 3-2-3) Strategy by Bearing Type (NRB)
62 3-2-3) Strategy by Bearing Type (NRB) Strengthen global development system Profit rate (establish 3-base development system) (Index) Index - Effective product development by job sharing - Acquisition of global projects by frontloading activities +300 - Mutual utilization of technologies among tec
Slide 63: 3-2-3) Strategy by Bearing Type (SBB)
63 3-2-3) Strategy by Bearing Type (SBB) • Develop innovative manufacturing method • Reconstruct global production system • Strengthen & expand aftermarket sales • Develop high-value-added products Industrial Machines: High-performance motor, ultrathin bearings (speed reducers) Automotive: SBBs resp
Slide 64: JTEKT Corporation
JTEKT 64 Koyo 4 Key of your operation JTEKT Corporation
Slide 65: 4) Machine Tools & Mechatronics Business Operations Strategies
65 3-2) Progress Status of Mid-term Management Plan 4) Machine Tools & Mechatronics Business Operations Strategies JTEKT Corporation
Slide 66: 3-2-4) Roles and Aims (Mid-term Plan)
66 3-2-4) Roles and Aims (Mid-term Plan) Roles & True total production system integrator that is trusted by customers Aims Provide value at all phases of monozukuri Business Solidify the basis for “connectable” business from business focusing on new machines (up to 2016), Operations and enhance the
Slide 67: 3-2-4) Business Operations Strategies (Mid-term Plan)
3-2-4) Business Operations Strategies 67 (Mid-term Plan) Value connectable From business Customer/Equipment DB Group companies Solution focusing on new machines to Improvement/Modification Engineering/System Overhaul Proposal "3-factor Machine sales connectable" Training Education Customer (Machin
Slide 68: 3-2-4) Accomplishment Status of 2018 Mid-term Plan
3-2-4) Accomplishment Status of 68 2018 Mid-term Plan Sales/profit forecast of FY 2018 (Based on management rate) • Investment was suppressed in 2016 due to continued appreciation of the yen and concern about global economic prospects 2019 sales/operating profit targets are ‒> Profit decline estimat
Slide 69: 3-2-4) Review of FY 2014 and FY 2015 (Sales capability)
3-2-4) Review of FY 2014 and FY 2015 69 [Priority activities (1): Sales capability] Achievements FY 2014 FY 2015 Increase in sales of control systems Further sales expansion with series products Expansion of dealers in Europe Completed organization of dealers in Europe (13 countries) Expansion and o
Slide 70: 3-2-4) Review of FY 2014 and FY 2015 (Product potential)
3-2-4) Review of FY 2014 and FY 2015 70 [Priority activities (2): Product potential] FY 2014 FY 2015 Achieve Model change to new machine/sales ments Story-backed technology development and timely expansion product development (Cylindrical grinders GE4i/GL4i/GL5i) New model Improvement/Modification M
Slide 71: 3-2-4) Review of FY 2014 and FY 2015 (Monozukuri revolution)
3-2-4) Review of FY 2014 and FY 2015 71 [Priority activities (3): Monozukuri revolution] FY 2014 FY 2015 Start of reforming into smart factory by utilizing IoE Achievements Execution of Kariya ReBORN (building of production management system, (unmanned FMS operation, no scraping, etc.) visualized sy
Slide 72: 3-2-4) Review of FY 2014 and FY 2015 (Grinder)
3-2-4) Review of FY 2014 and FY 2015 72 [Business operations strategies (1): Grinder] FY 2014 FY 2015 Development of complex cam Market supply of equipment with concave cam Achievements (concave cam) grinder grinding technology implemented Development of CNC cylindrical grinder "e500G" for mass prod
Slide 73: 3-2-4) Review of FY 2014 and FY 2015 (Cutting machine/MC)
3-2-4) Review of FY 2014 and FY 2015 73 [Business operations strategies (2): Cutting machine/MC] FY 2014 FY 2015 Commercialization of real-time thermal Development of large horizontal machining center Achievements displacement correction (FH1600SW5i) (FH630SX-i: Thermal displacement 1/5) Development
Slide 74: 3-2-4) Review of FY 2014 and FY 2015 (Gear skiving)
3-2-4) Review of FY 2014 and FY 2015 74 [Business operations strategies (3): Gear skiving] FY 2014 FY 2015 Start of supply to gear processing Achievements market Development of mid-sized machine for Development of large machine for gear skiving gear skiving center center (GS700H5) (GS300H) Received
Slide 75: 3-2-4) Review of FY 2014 and FY 2015 (Control system 1)
3-2-4) Review of FY 2014 and FY 2015 75 [Business operations strategies (4): Control system 1] IoE: Abbreviation of Internet of Everything JTEKT aims to connect everything including not only "goods" but also "matters" such as services Construct a smart factory based on IoE (Internet of Everything) P
Slide 76: 3-2-4) Review of FY 2014 and FY 2015 (Control system 2)
3-2-4) Review of FY 2014 and FY 2015 76 [Business operations strategies (4): Control system 2] Achievements FY 2014 FY 2015 TOYOPUC full model change Full-scale entry to IoE business (business implementation in general (remote diagnosis available HMI: TOYOPUC-Touch) market) (Big data processing modu
Slide 77: 3-2-4) Review of FY 2014 and FY 2015 (Customer support)
3-2-4) Review of FY 2014 and FY 2015 77 [Business operations strategies (5): Customer support] Internet maintenance system (remote diagnosis, waveform diagnosis, parts life management) Cloud Customer Equipment JTEKT monitoring Periodic data extraction ↓ Internet Symptom management Preventive mainten
Slide 78: 3-2-4) Actions for FY 2016 (1)
78 3-2-4) Actions for FY 2016 (1) Environmental changes in FY 2015 Incorporation into FY 2016 • Deterioration of business situation • Improve to surviving constitution from constitution that “2016 first half estimated amount of orders: 23 depends on sales increase Entire billion yen (Year on year: ∆
Slide 79: 3-2-4) Actions for FY 2016 (2)
79 3-2-4) Actions for FY 2016 (2) Environmental changes in FY Incorporation into FY 2016 2015 Grinder • Performance improvement of • Review development strategy Cutting competitors • Improve competitiveness of grinders machine • Accelerated trend to use multi-functional • Examine development of mult
Slide 80: FY 2016 Priority Policies
80 FY 2016 Priority Policies 1. Evolution of the grinding machine business . 2. Sales promotion of the control unit and establish business models of IoE. 3. Promote business model of customer service 4. Production innovation of KARIYA Plant. (distribution improvement, smarter factory device) 5. Iden
Slide 81: Enhancement of Fundamentals
81 3-2) Progress Status of Mid-term Management Plan Enhancement of Fundamentals Global HR Management Strengthening Financial Basis Operational Reform of Indirect Departments Establishing Global Business Basis JTEKT Corporation
Slide 82: 3-2-5) Global HR Management
82 3-2-5) Global HR Management (1) Appointment/development/optimized assignment of global management HR Roles & Aims (2) Improvement of ability/organizational capabilities of individual employees Being created/Being implemented/Being operated Actions to be taken in and after FY 2015 Present (end of
Slide 83: 3-2-6) Strengthening Financial Basis (1)
83 3-2-6) Strengthening Financial Basis (1) Building of financial basis as "Excellent Company" • Build change-resistant financial [Company-wide numerical targets] Roles & Aims basis • 150 billion yen or less in interest-bearing debt • Secure sufficient strategic funds • D/E ratio: 0.3 or less • Stra
Slide 84: 3-2-6) Strengthening Financial Basis (2) – B/S Cleanup Activities
3-2-6) Strengthening Financial Basis (2) – B/S Cleanup Activities B/S cleanup activity was carried out to realize "building of change- resistant financial basis" in FY 2014 and FY 2015 Actual amount (100 million yen) FY 2014 FY 2015 Total Overall inspection and Operating 29 41 70 organization of ass
Slide 85: 3-2-7) Operational Reforms for Indirect Departments
85 3-2-7) Operational Reforms for Indirect Departments Roles & Aims • Upgrade the standardization of daily work among all the indirect departments of the JTEKT group and establish small HP/small indirect departments!! • Globally implement standardized work to realize the same system in all JTEKT gro
Slide 86: 3-2-8) Establishing Global Business Basis (Information System)
3-2-8) Establishing Global Business Basis 86 (Information System) Introduce IT to standardized core business operations on global basis to build information-sharing infrastructure and reduce cost of indirect departments!! Main measures Implementation Target effect (million yen) (1) IT introduction t
Slide 87: (Reference) Quarterly trend
87 (Reference) Quarterly trend Operating income rate (100 million yen) 6.5% 6.1% 5.1% 5.1% 5.1% 5.8% 5.7% 5.8% 4.6% 6.7% 2.7% 3,637 3,465 3,553 3,461 3,520 3,334 3,369 3,150 3,218 2,893 2,668 236 215 199 204 199 194 165 169 171 145 Net Sales 72 Operating Income FY 2007*1 FY 2012*2 FY 2013*3 FY 2014
Slide 88: (Reference) Financial Results by Product (Mechanical Components)
(Reference) Financial Results by Product 88 (Mechanical Components) Before offset between segments Operating Income Quarterly Trend Operating Income Net Sales Quarterly Trend 209 Operating Income (%) 6.2% Steering Systems Driveline Components Bearings 176 180 178 176 4.7% 4.9% 4.7% 4.8% 6.7% 148 5.7
Slide 89: (Reference) Financial Results by Product (Machine Tools & Other)
(Reference) Financial Results by Product 89 (Machine Tools & Other) Operating Income Quarterly Trend Operating Income Net Sales Quarterly Trend Operating Income (%) 9.0% 9.1% Machine tools Other 7.8% 7.8% 7.5% 507 483 8.5% 64 412 49 440 443 4.4% 5.6% 6.1% 5.2% 5.7% 364 351 349 21 379 32 385 29 337 2
Slide 90: (Reference) Financial Results by Region (Japan)
90 (Reference) Financial Results by Region (Japan) Quarterly Trend (100 million yen) Operating income rate 6.0% 6.3% 6.3% 5.6% 5.7% 5.6% 7.7% 5.3% 5.2% 4.3% 3.3% 1,586 1,441 1,479 1,443 1,468 1,354 1,390 1,344 1,380 1,324 1,306 121 Net Sales 83 90 83 82 73 80 72 71 63 44 Operating Income FY 2007 FY
Slide 91: (Reference) Financial Result by Region (Europe)
91 (Reference) Financial Result by Region (Europe) (100 million yen) Quarterly Trend 3.4% 3.4% 1.4% 1.8% 2.4% 2.3% 2.0% 0.4% ᇞ1.0% 2.1% ᇞ3.9% 579 556 532 530 539 554 495 494 507 508 348 19 17 12 7 8 12 12 11 1 ᇞ5 ᇞ13 FY 2007 FY 2012 FY 2013 FY 2014 1Q 2Q 3Q 4Q FY 2015 1Q 2Q 3Q 4Q JTEKT Corporation
Slide 92: (Reference) Financial Results by Region (North America)
(Reference) Financial Results by Region 92 (North America) (100 million yen) Quarterly Trend 4.8% 3.9% 6.6% 2.8% 3.0% 5.7% 3.2% 2.2% 1.0% 866 3.8% 3.2% 810 822 788 804 780 709 731 618 52 46 41 426 459 27 30 23 25 17 16 13 4 FY 2007 FY 2012 FY 2013 FY 2014 1Q 2Q 3Q 4Q FY 2015 1Q 2Q 3Q 4Q JTEKT Corpor
Slide 93: (Reference) Financial Results by Region (Asia/Oceania)
(Reference) Financial Results by Region 93 (Asia/Oceania) Quarterly Trend (100 million yen) 16.3% 10.6% 10.7% 9.9% 8.7% 7.7% 7.7% 7.5% 8.0% 7.9% 9.4% 457 392 410 363 371 375 354 359 368 329 214 48 34 34 39 40 31 27 28 26 28 29 FY 2007 FY 2012 FY 2013 FY 20141Q 2Q 3Q 4Q FY 2015 2Q 3Q 4Q 1Q JTEKT Corp
Slide 94: (Reference) Financial Results by Region (China)
94 (Reference) Financial Results by Region (China) (100 million yen) Quarterly Trend 16.9% 13.7% 13.5% 14.3% 12.1% 12.8% 11.0% 11.7% 15.0% 10.0% 377 336 9.3% 299 312 272 275 230 52 54 200 208 45 35 37 35 132 28 21 20 46 12 7 FY 2007 FY 2012 FY 2013 FY 2014 1Q 2Q 3Q 4Q FY 2015 1Q 2Q 3Q 4Q JTEKT Corpo
Slide 95: (Reference) Financial Results by Region (South America/Other)
(Reference) Financial Results by Region 95 (South America/Other) Quarterly Trend (100 million yen) 2.2% 2.2% 3.2% 4.1% ᇞ0.5% ᇞ1.3% ᇞ5.4% ᇞ4.6% ᇞ3.0% 13.6% ᇞ16.6% 64 61 59 59 60 52 55 47 49 44 39 5 2 1 1 0 ᇞ0 ᇞ1 ᇞ0 ᇞ2 ᇞ3 ᇞ9 FY 2007 FY 2012 FY 2013 FY 2014 1Q 2Q 3Q 4Q FY 2015 1Q 2Q 3Q 4Q JTEKT Corpora