Financial Results for The 1 st Half of FY 2018 (Year Ending March 31, 2018) November 10, 2017 (Fri.) KOITO MANUFACTURING CO., LTD.

Transcription

1 Financial Results for The 1 st Half of FY 2018 (Year Ending March 31, 2018) November 10, 2017 (Fri.) KOITO MANUFACTURING CO., LTD.

2 Disclaimer with Respect to Forward-looking Statements This presentation contains forward-looking statements concerning KOITO MANUFACTURING CO., LTD. and its consolidated subsidiaries future plans, strategies and performance. These forwardlooking statements are not historical facts; rather they represent assumptions and beliefs based on economic, financial and competitive data currently available. Furthermore, they are subject to a number of risks and uncertainties including, but not limited to economic conditions, worldwide competition in the automotive industry, market trends, foreign currency exchange rates, tax rules, regulations and other factors. Koito therefore wishes to caution readers that actual results may differ from our expectations.

3 Ⅰ. Financial Results for The 1 st Half of FY 2018 (Year Ending March 31, 2018)

4 KOITO MANUFACTURING (KMC) Ja p a n O v er s e a s KOITO Group 71.7 KI Group 17.5 % to % to (16/4~16/9) (17/4~17/9) total total Subtotal 89.2 Americas 81.7 Europe 15.5 China 94.5 Asia 39.9 KI Group 5.8 Subtotal Total Elimination Consolidated Ⅰ-(1) Consolidated Net Sales FY st half FY st half YoY Domestic automobile production volume (4.41 million 4.60 million vehicles 104%) Increase in unit price led by LED adoption Th e e ffe c t of Forex Con stan t Fore x (% ) Increase at Toyota and Mazda Increase at Nissan and Suzuki Increase at GM Increase at Mazda Remarks (1/9) ( billion) 64.2 Decrease in railroad car equipment FY 2017 FY US Dollar \105.4 \ Chinese Yuan \ 15.9 \ 16.5

5 Ⅰ-(2) Consolidated Statements of Income (2/9) ( billion) Ne t s a l e s (C o n stan t F o re x) Cost of sales Gr os s P r ofi t Selling, general and administrative expenses O pe ratin g in c o me Non-operating operating income and loss Recur r i n g p r ofi t Extraordinary gains or losses Income before income taxes Ne t i n c om e F Y s t h al f F Y s t h al f ( A c t u al ) ( P r e vi o u s f o r e c as t ) (16/4~16/9) (17/4~17/9) F Y s t h al f ( A c t u a l ) Ch an ge ( A c t u a l ) (17/4~17/9) fr om FY fr om For e c a s t (4 7.1 ) ( ) (0.6 ) ( )

6 Ⅰ-(3) Statements of Income by Regions before Consolidation Adjustments FY 2018 (17/4~17/9) K O I T O G r o u p O ve rse as KI G ro u p S u bt ot a l ( 1 5 c o m p a n i e s ) (3/9) ( billion) Ne t sale s O pe ratin g in c o me Ratio % 5.2 % % 8.3 % 8.6 % % FY 2017 (16/4~16/9) K O I T O G r o u p O ve rse as KI G ro u p S u bt ot a l ( 1 5 c o m p a n i e s ) Ne t sale s O pe ratin g in c o me Ratio 9.2 % 5.4 % % 9.0 % 8.0 % % KMC KMC KMC Ja pan (14 companies ) Ja pan (14 companies ) Ja pan (14 companies ) K O I T O G r o u p O ve rse as KI G ro u p S u bt ot a l ( 1 5 c o m p a n i e s ) To tal To tal To tal Elimin a t io n C o n s o l i dat e d Elimin a t io n C o n s o l i dat e d Elimin a t io n C o n s o l i dat e d Ne t sale s Y o Y % % % % % % % O pe ratin g in c o me Y o Y % % % % % %

7 FY 2018 (17/4~17/9) Ne t sale s O pe ratin g in c o me Ratio FY 2017 (16/4~16/9) Ne t sale s O pe ratin g in c o me Ratio Ⅰ-(4) Statements of Income by Segments before Consolidation Adjustments Ne t sale s Yo Y O pe ratin g in c o me Yo Y Constant Forex Net sales Operating income (4/9) ( billion) Ove rse as (1 5 c o mpan ie s) Americas Eu ro pe Ch in a Asia KI Group To tal % 8.9 % 6.6 % 9.4 % % 8.3 % Ove rse as (1 5 c o mpan ie s) Americas Eu ro pe Ch in a Asia KI Group To tal % % 6.8 % % % 9.0 % Ove rse as (1 5 c o mpan ie s) Americas Eu ro pe Ch in a Asia KI Group To tal % % % % 6 7 % % % % % % 6 8 % % (T h e e ffe c t of For e x : O p e r a t i n g i n c om e 1. 2 )

8 Ne t s a l e s (Cons t a n t For e x ) Cost of sales Gr os s P r ofi t Selling, general and administrative expenses O pe ratin g in c o me Non-operating operating income and loss Recur r i n g p r ofi t Extraordinary gains or losses Income before income taxes Ne t i n c om e Ⅰ-(5) Consolidated Statements of Income FY s t half h a l f FY s t h a l f (5/9) ( billion) Ch an ge Increase in operating income 9.9 (16/4~16/9) (17/4~17/9) Increase in volume ( ) (4 7.1 ) Price competition R& D and d depreciation c n etc e (KMC 1.3, Americas 0.8 etc. ) Oth e rs The effect of Forex

9 Ⅰ-(5) Consolidated Statements of Income (6/9) ( billion) Net s a l e s (Cons t a n t For e x ) Cost of sales Gr os s P r ofi t Selling, general and administrative expenses O pe ratin g in c o me Non-operating operating income and loss Recur r i n g p r ofi t Extraordinary gains or losses Income before income taxes Net i n c om e FY s t h a l f FY s t h a l f (16/4~16/9) (17/4~17/9) Ch an ge (430.8) (4 7.1 ) Increase in operating income 9.9 Non-operating income and loss (De c re ase in lo ss o n Fo re x e tc. ) 2.7 Increase in recurring profit Extraordinary gains or loss 0.8 K M C' s l os s r el a t ed t o t he Act on Prohibitation to Private Monopolization and a n d Maintenance M a i n t a nc e of Fair i r Trade T r a d e 1.5 Lo ss o n disaste r in I JL (FY ) 0.9 and others Increase in net income 6.2

10 Ⅰ-(6) Non-consolidated Statements of Income (7/9) ( billion) Ne t s a l e s Cost of sales Gr os s P r ofi t Selling, general and administrative expenses O pe ratin g in c o m e Non-operating operating income and loss Recur r i n g p r ofi t Extraordinary gains or losses Income before income taxes Ne t i n c om e F Y s t h a l f F Y s t h a l f ( A c t u a l ) ( P r e v i o u s f o r e c a s t ) (16/4~16/9) (17/4~17/9) F Y s t h a l f ( A c t u a l ) Ch an ge ( A c t u a l ) (17/4~17/9) fr om FY fr om For e ca s t

11 Ⅰ-(7) Non-consolidated Statements of Income (8/9) ( billion) Net s a l es Cost of sales Gr os s Pr ofi t Selling, general and administrative expenses Operating in come Non-operating operating income and loss R ecurri ng p r ofi t Extraordinary gains or losses Income before income taxes Net i ncome FY Y s t h alf FY Y s t h alf (Actu al) (16/4~16/9) (Ac tual) (17/4~17/9) Ch ange Increase in operating income Increase in volume Cost down in materials Reinforcement in R &D etc. Others Increase in operating income

12 Net s a l e s Cost of sales Gr os s P r ofi t Selling, general and administrative expenses O pe ratin g in c o m e Non-operating operating income and loss R ec u r r i n g p r ofi t Extraordinary gains or losses Income before income taxes Net i n com e Ⅰ-(7) Non-consolidated Statements of Income F Y s t h alf F Y s t h alf ( Ac tu al) (16/4~16/9) (Ac tu al) (17/4~17/9) Ch an ge Increase in operating income Non-operating i ncome and loss (increase in interest income and dividend) Increase in recurring profi t Extraordinary g ains and losses 1.0 Loss related to the Act on Pr ohi b i t a t i on t o P r i v a t e M onop ol i z a t i on and Maintenance of Fair Trade 1.5 Los s on d emol i s hi ng wes t s i d e of S hi z uok a P l a nt 0.1 Devaluation loss of IJL stock 0.7 (9/9) ( billion) 0.7 Increase in net income 5.9

13 Ⅱ.Forecast for FY 2018 (Year ending March 31, 2018)

14 Ⅱ-(1) Assumption of Global Automobile Production Volume (1/11 11 ) Japan North America Europe China Thailand Indonesia India Others Total FY 2016 FY st half 2 nd half FY (million vehicles) from previous year of 1 st and 2 nd half % 107% % 102% % 112% % 122% % 103% % 105% % 104% % 104% % 111%

15 KOITO MANUFACTURING (KMC) Ja p a n O v er s ea s FY s t half (Actual) % to ( 17/4~17/9) total KOITO Group 87.7 KI Group 17.8 Subtotal Americas 87.4 Europe 20.5 Asia 49.8 KI Group 3.9 FY nd half (Forecast) (17/10~18/3) % to total (without SK) (366.2) (376.3) (10.1) SK: Shanghai Koito Automotive Lamp Co., Ltd. YoY Th e e ffe c t of Forex Co n stan t Fo re x (% ) (198.0) (186.7) ( 11.3) (94.3) ( 単位金額 : 億円 率 :%) (Constan t For ex) (94.3) ( 17.7) (103.3) (6.4) (10.1) (102.8) ( 17.7) Remarks Domestic automobile production volume (4.60 million 4.90 million vehicles 107%) Increase in public constructions etc Increase at Toyota and Honda China Non-consolidation of SK (SK) (79.4) (-) ( 79.4) - (-) (-) (from Oct., 2017) (without SK) (36.3) (31.3) ( 4.9) (86.4) ( 1.9) (91.8) Subtotal (without SK) Total Elimination Consolidated Ⅱ-(2) Consolidated Net Sales (Compared to the first half of FY 2018) Decrease in sales of molds ( 17.7) (107.6) (27.8) Decrease in railroad car equipment <Excha nge rat e> FY 2018 FY ( 1 s t h a l f ) ( 2 n d h a l f ) U S D o l l a r \ \ Chines e Yuan \ \ (2/11 ) ( billion, ratio:%) (Constan t <Annu al sens itivit y per For ex) US D ollar/ 1 yen> N e t s a l e s : \ 3. 5 b i l l i o n Oper ating i ncome: \ 0. 3 b illion

16 Ⅱ-(3) Consolidated Statements of Income (Compared to the first half of FY2018) Net sales (without SK) (366.2) (376.3) (10.1) Cost of sales Gross profit Se lling, general and administrative expense s 30.1 Operating income 49.6 (10.1) (102.8) (without SK) (46.3) (47.3) (0.9) (102.1) Non-operaing income and loss Recurring profit Extraordinary gains or losses 1.9 Income before income taxes 50.3 Net income 29.1 F Y s t h a l f F Y n d h a l f ( A c t u a l ) ( F o r e c a s t ) (17/4~17/9) (17/10~18/3) (3/11 ) ( billion, ratio:%) Operating income 2.3 SK 3.3 without SK 0.9 Increase in volume 9.7 sales without the effect of Forex billion yen Price competition 0.1 R&D and depreciation 4.6 (KMC 2.9, Americas 1.6 etc. ) Others 2.0 The effect of Forex 2.1 Decrease in operating income 2.3 Non-operating income and loss (decrease in SK's non-operating income) 2.2 Decrease in recurring profit 4.6 Extraordinary gains and losses 17.4 (1 st half) KMC's loss related to the Act on Prohibitation to Private Monopolization and Maintenance of Fair Trade 1.5 (2 nd half) Gain on sales of SK's capital 12.6 Technical royalty from SK 3.0 Increase in net income 12.6

17 Ⅱ-(4) Non-consolidated Statements of Income (Compared to the first half of FY 2018) Net sales Cost of sales Gross profit 30.2 Selling, general and administrative expe n se s 10.9 Operating income 19.3 No n -operatin g income and loss 12.6 Recurring profit 32.0 Extraordin ary gains or losses 1.8 In come be fo re in c o me taxe s 30.1 Net income 22.3 F Y s t h a lf F Y n d ha l f ( A c t u al ) ( F o r ec a s t ) (17/4~17/9) (17/10~18/3) (4/11 ) ( billion, ratio:%) Operating income 1.7 Increase in volume 3.7 Price competition 0.5 Reinforcement of R&D 2.9 R&D for autonomous driving technology 0.6 Development of new products 2.3 Cost for work-style reform 1.0 Others 1.0 Decrease in operating income 1.7 Non-operating income and loss (decrease in interest income and dividend) 7.2 Decrease in recurring profit 9.0 Extraordinary gains and losses 26.1 (1 st half) Loss related to the Act on Prohibitation to Private Monopolization and Maintenance of Fair Trade 1.5 (2 st half) Gain on sales of SK's capital 20.6 Technical royalty from SK Increase in net income 11.2

18 Ⅱ-(5) Consolidated Net Sales (5/11 ) Ja pa n O v er s e a s KMC FY 2017(Actual) FY 2018 (Forecast) % to % to ( 16/4~17/3) ( 17/4~18/3) YoY total total KOITO Groupp KI Groupp 41.5 Subtotal Americas Europe 32.0 China (without SK) (70.5) Asia 89.0 KI Group 9.3 Subtotal (without SK) (379.0) Th e e ffe c t o f Fore x Constan t Fo re x (% ) Increase at Toyota Increase at Nissan (SK) (142.8) (79.4) ( 66.3) (55.6) (2.7) (53.7) (from Oct., 2017) Total Elimination Consolidated (without SK) (70.5) (67.6) ( 2.9) (95.8) ( 0.4) (96.4) Increase at Toyota and Isuzu (379.0) (384.7) (5.6) (5.6) (101.5) 1, , (101.5) ( 2.0) ( C o n s t a n t F o r e x ) ( 2.0) (102.1) (7.7) (698.6) (742.5) (43.9) (43.9) (106.3) (106.3) ( 2.0) ( C o n s t a n t < A n n u a l s e n s i t i v i t y p e r U S 97.6 F o r e x ) D o l l a r / 1 y e n > N e t s a l e s : \ 3. 5 b i l l i o n O p e r a t i n g i n c o m e : 0. 3 b i l l i o n ( 2.0) (106.6) (46.0) Remarks Domestic automobile production volume (9.36 million 9.50 million vehicles 101%) Increase in unit price led by LED adoption Production transfer +7.0 billion yen (GUANGZHOU KOITO KOITO KYUSHU) Increase in seats for railroad cars, and traffic systems Non-consolidation of SK ( billion, ratio:%) Production tran sfer 7.0 billion ye n ( GUANGZHOU KOITO KOITO KYUSHU) Decrease in railroad car equipment etc. <Exchange rate> FY 2017 FY 2018 (Actual) (Forecast) US Dollars \108.7 \108.2 Chinese Yuan \ 16.1 \ 16.0

19 Ⅱ-(6) Consolidated Statements of Income Net sales (without SK) (698.6) (742.5) (43.9) (106.3) Cost of sales Gross profit Se llin g, ge n e ral an d administrative expe nse s 54.8 Operating income (without SK) (85.7) (93.6) (7.8) (109.2) Non-operating income and loss Recurring profit Extraordinary gains or losses 3.7 Income before income taxes 91.6 Net income 56.6 FY 2017 (Actual) FY 2018 (Forecast) (16/4~17/3) (17/4~18/3) Operating income 4.4 SK 3.4 without SK 7.8 Increase in volume 14.2 (sales without the effect of Forex billion yen) Cost down in materials 0.5 R&D and depreciation etc. 6.1 (KMC 2.2, Americas 2.9 etc.) Others 0.5 The effect of Forex 0.3 Increase in operating income 4.4 Non-operating income and loss 0.1 Increase in recurring profit 4.6 Extraordinary gains and losses Gains on sales of SK's capital Technical royalty from SK KMC's s loss related to the Act on Prohibitation to Private Monopolization and Maintenance of Fair Trade (FY FY :3.3 FY 2018 (6/11 ) ( billion, ratio:%) 2018:1.5) 1.8 Increase in net income 14.3

20 Ⅱ-(7) Statements of income of Japan and Overseas before Consolidation Adjustments FY 2018 (Forecast) (17/4~18/3) Net sales Operating income Ratio KMC FY 2017 (Actual) (16/4~17/3) Net sales Operating income Ratio Net sales YoY Operating income YoY Co n stan t Fo re x N e t s a l es 37.2 O p er a t in g i nc o m e 7.7 KOITO Group KI Group Subtotal Subtotal without SK without SK , % 5.1% 3.7% 4.8% 9.2% 10.2% 8.8% % 12.6% KMC KOITO Group KI Group Subtotal Subtotal without SK without SK , % 5.6% 0.8% 4.6% 9.2% 10.9% 8.5% % 12.3% KMC KOITO Group Japan (14 companies) Overseas (15 companies) Japan (14 companies) Overseas (15 companies) Japan (14 companies) Overseas (15 companies) KI Group Subtotal Subtotal without SK Total Total Total Elimin atio n Co n so lidate d Elimin atio n Co n so lidate d Elimin atio n Co n so lidate d (7/11 ) ( billion) without SK % 116% 105% 114% 89% 102% 101% - 98% 106% % 106% 513% 120% 89% 95% 105% - 105% 109%

21 Ⅱ-(8) Non-consolidated Statements of Income Net sales Cost of sales Gross pofit 49.8 S e l l i n g, g e n er a l a n d administrative expenses 20.5 Operating income 29.2 No n -ope rating income and loss 16.4 Recurring profit 45.7 Extraordinary gains or losses 3.4 Income before income taxes 42.3 Net income 31.1 FY 2017 FY 2018 (Actual) (Forecast) (16/4~17/3) (17/4~18/3) Operating income 7.7 Increase in volume 9.5 Cost down in materials 0.9 R&D expenses and others 2.2 R&D for autonomous driving technology 1.4 Development of new products 0.8 Cost for work-style reform 0.9 Others 0.4 Increase in operating income 7.7 Non-operating income or loss (increase in interest income and dividend) Increase in recurring profit 9.2 Extraordinary gains and losses 25.8 Gain on sales of SK's capital 20.6 Technical royalty from SK 3.0 Loss related to the Act on Prohibitation to Private Monopolization and Maintenance of Fair Trade 1.8 (8/11 ) ( billion, ratio:%) 1.8 Increase in net income 24.8

22 Ⅱ-(9) Statements of Income in Americas and Europe FY F Y (A ct ua l ) ( F or ec a st ) (16/4~17/3) (17/4~18/3) Constant Remarks Forex (9/11 ) ( billion, ratio:%) A m e r i c a s E u r o p e Net sales Operating income Ratio 11.3 Net sales 32.0 Operating income Ratio Operating income 2.8 Increase in volume 0.3 Price competition 0.2 R&D expenses and others 1.7 Development of new products 1.3 R&D for autonomous driving technology 0.4 Strengthen the function of Quality Assurance and Purchasing Department etc Expenses to starting-up NAL Brasil 0.7 Operating income 0.7 Increase in volume 1.0 Price competition 0.3

23 Ⅱ-( -(10) Statements of Income in China and Asia FY F Y ( A ct ua l ) ( Fo r ec as t ) (16/4~17/3) (17/4~18/3) Constant Forex Remarks (10/11 11 ) ( billion, ratio:%) C h i n a A s i a Net sales (without SK) (70.5) Operating income 13.2 (without SK) (6.5) (70.5) (67.6) ( 2.9) 95.8 ( 2.5) (6.5) (7.0) (0.5) (0.5) Ratio (without SK) (9.3) (9.3) (10.4) Net sales Operating income 8.2 Ratio Operating income 2.9 SK 3.4 without SK 0.5 Increase in volume Price competition Increase in capacity utilization etc. (Hubei Koito) Operating income 0.4 Increase in volume 0.3 Cost down in materials 0.5 Depreciation and others 0.4

24 J a p a n Ⅱ-( -(11) Capital Expenditures by Segment (11/11 ) FY 2016 FY 2017 FY 2018 (Forecast) 15/4~ 16/4~ 17/4~ from FY /3 17/3 18/3 Di ffer ence Ra t i o Remarks Equipment Molds Decrease in in-house production KMC KOITO KYUSHU K I H D a nd K O I T O E LE CT RIC I ND. Others Subtotal Americas Europe China Asia Subtotal Total (Order amount) Depreciation (KMC (39.2) (41.0) (53.0) (12.0) (129) ) ( billion, ratio:%) NAL 3.8 billio n ye n ( billio n ye n ) Brazil billio n ye n ( billio n ye n ) Shang hai 0.6 billion y en ( billion yen) Malaysia billio n ye n ( billio n ye n )