Earning Presentation for Three months ended June 30, 2017

Transcription

1 Earning Presentation for Three months ended June 30, 2017 August 10, 2017 This presentation contains forward looking statements that are based on current expectations and assumptions. Actual results could differ materially due to risks and uncertainties, which includes, but not limited to, currency fluctuation and competitive activity.

2 Key Notes Financial Results for 1Q of FY 2017 Sales declined in the Watches segment mainly due to sluggish growth in the overall watch market, but profits increased with improved profitability. Machine Tools maintained a full demand. Ordinary profit increased significantly thanks to an improvement in non-operating income and expenses. FY 2017 Forecast The full-year results forecast remains unchanged. 2

3 Financial Results for 1Q of FY 2017 FY 2016 FY 2017 YoY change (Unit: billion yen) 1Q Result 1Q Result % Amount Net sales % % 0.7 Operating margin 6.0% 5.3% - - Ordinary profit % +1.7 Profit attributable to owners of parent % +0.3 Exchange rate 111/USD 125/EUR 111/USD 122/EUR - Effect of exchange Net sales Operating profit USD EUR (1 weaker yen, Annual) 3

4 Net Sales by Business Segments FY 2016 FY 2017 YoY change (Unit: billion yen) 1Q Result 1Q Result % Amount Watches % 0.9 Machine Tools % +0.3 Devices and Components Electronic Products % % 0.5 Other Products % 1.0 Consolidated Total % 3.9 4

5 by Business Segments (Unit: billion yen, %: operating margin) Watches Machine Tools Devices and Components Electronic Products Other Products Eliminations or general corporate Consolidated Total FY 2016 FY 2017 YoY change 1Q Result 1Q Result % Amount 2.2 (6.1%) 1.9 (15.1%) 1.1 (6.5%) 0.1 (2.1%) 0.0 (2.1%) 2.6 (7.3%) 1.6 (12.4%) 0.6 (3.7%) 0.0 (1.2%) 0.0 (5.2%) +16.5% % % % % (6.0%) 3.8 (5.3%) 17.0% 0.7 5

6 Watches (1Q17 Result) Domestic market: Revenues declined, affected by the sluggish growth of the overall market, despite the strong performance of new products. Overseas market: Revenues declined due to the sluggish growth in overall demand for watches, despite a recovery in some regions. Movement sales: Sales declined year on year, but profitability increased with an improved product mix. Net sales (billion yen) Watches 60 Others (billion yen) 16 Operating margin 20% Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Est % 10.5% 6.1% % 9.6% 4.2% Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Est. 15% 10% 5% 0% 6

7 Machine Tools (1Q17 Result) Domestic market: Revenues increased as capital expenditure remained active in a broad range of industries. American market: Revenues declined as the stance on capital expenditure remained cautious, reflecting a wait-andsee attitude toward policy trends. European market: Revenues increased as automobile-related sales remained firm in Germany and Italy. Asian market: Revenues declined in the absence of the large orders received in East Asia in the previous fiscal year. (billion yen) Net sales Machine Tools (billion yen) % Operating margin 12.4% 13.0% 11.0% 12.4% 16.8% 20% 15% 2 10% % 0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Est. 0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Est. 0% 7

8 Devices and Components (1Q17 Result) Precision machining components: Sales of automobile components remained solid, but revenues declined due to a fall in sales of switches. Opto-devices: Revenues increased, reflecting steady growth in sales of chip LEDs, etc. Other parts: Revenues increased due to growth in sales of quartz devices and ferroelectric micro LCDs. (billion yen) Net sales Other parts Opto-devices Precision machining components (billion yen) % 1.1 Operatin margin 9.1% 5.6% 6.0% 4.9% 3.7% % 15% 10% 5% 0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Est Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Est. 0% 8

9 FY 2017 Forecast (Unit: billion yen ) 1H Result FY 2016 FY 2017 Full Year Result 1H Forecast Full Year Forecast 1H YoY Change Full Year Net sales % +2.4% Operating profit Operating margin % +9.3% 6.9% 6.9% 7.1% 7.3% - - Ordinary profit % +11.4% Profit attributable to owners of parent % 3.5% Exchange rate 107/USD 120/EUR 109/USD 119/EUR 110/USD 120/EUR 110/USD 120/EUR - - 9

10 FY2017 Forecast by Business Segments Net sales (Unit: billion yen ) 1H Result FY 2016 FY 2017 YoY Change Full Year Result 1H Forecast Full Year Forecast 1H Full Year Watches % +5.1% Machine Tools % +6.7% Devices and Components % 5.0% Electronic Products % +1.0% Other Products % 12.6% Watches Machine Tools Devices and Components Electronic Products Other Products Eliminations or general corporate 6.5 (8.4%) 3.4 (13.8%) 2.1 (6.0%) 0.2 (2.4%) 0.1 (3.2%) 14.4 (8.9%) 6.4 (12.9%) 3.9 (5.7%) 0.5 (2.3%) 0.3 (4.2%) 7.0 (8.5%) 4.0 (14.5%) 2.0 (6.3%) 0.4 (3.6%) 0.2 (5.7%) 16.0 (9.3%) 7.5 (14.2%) 4.2 (6.4%) 0.8 (3.6%) 0.3 (4.3%) +7.2% +10.4% +15.6% +17.1% 8.1% +5.4% +48.8% +57.8% +38.1% 11.6%

11 TOPICS Sales and marketing of FREDERIQUE CONSTANT in Japan officially started on August 1. 11

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