SHOEI CO., CO., LTD. Presentation November 22, 2018

Transcription

1 SHOEI CO., LTD. Presentation November 22, 2018

2 Regime for the 62nd Fiscal Year Sales volume increased 15,000 units year on year, mainly in Japan and North America. Unit prices of products increased as well. As a result, revenue was up 1,507 million yen. Foreign exchange rates (euro) at the term-end of subsidiaries (the end of June) were almost the same as those of the 61st term, and there was almost no foreign exchange impact on consolidated income. Meantime, despite an increase in raw materials cost and SG&A expenses, operating profit rose 272 million yen. As a result, net income of 2,578 million yen was posted, an all-time high for profit this term, as well. -1-

3 The Fiscal Year Ended Sep. 30, 2018 (1) Consolidated Statements of Income (Millions of yen) Oct.16 -Sept.17 Oct.17 -Sept.18 Changes from Previous year(%) N e t S a l es 15,641 17, Operating I n c o m e 3,461 3, O r d i n a r y I n c o m e 3,497 3, Profit attributable to owners of t 2,358 2, p a r e n t Net Income p e r S h a r e D i v i d e n d p e r S h a r e Notes: The net income per share is calculated using the weighted average number of shares (excluding treasury stock) during the period. -2-

4 (2) Change of Sales and Net Income Indicator (Millions of yen) Sales Net Income (Millions of yen) 18,000 4,000 15,000 3,000 12,000 9,000 2,000 6,000 1,000 3,000 0 The 57th The 58th The 59th The 60th The 61st The 62nd 0-3-

5 (3)The trend of Exchange Rate YEN EUR(MUFG Bank,Month end) EUR(Average rate) EUR(for Subsidiaries) USD(MUFG Bank,Month end) USD(Average rate) USD(for Subsidiaries) Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18-4-

6 New Products during the 62nd Fiscal Year <NEOTE NEOTECⅡ> System helmet with sun visor supporting intercom sold in unprecedented quantities thanks to the popularity of the innovative design and built-inin intercom functionality. Europe Launching in January 2018 North America Launching in March 2018 Japan Launching in May 2018 Sales Volume ( Consolidated base) Total : 95,000 units -5-

7 (4)Consolidated Balance Sheets Sept.30,2017 (Millions of Yen) Sept.30,2018 C a s h a n d D e p o s i t s 7,230 8,115 ( +884) Account Receivable 1,794 2,179 ( +384) Merchandise and Finished Goods 1,198 1,396 ( +198) W o r k i n P r o c e s s ( -28) Raw Materials and Parts ( +120) Other Current Assets ( -9) Total Current Assets 12,226 13,776 ( +1,550) T o t a l Fixed A sset s 2,776 2,979 ( +202) T o t a l A s s e t s 15,003 16,755 ( +1,752) Current Liabilities 2,005 2,296 ( +290) F i x e d L i a b i l i t i e s ( +57) T o t a l L i a b i l i t i e s 2,747 3,096 ( +348) Shareholders Equity ( C a p i t a l S t o c k ) ( T r e a s u r y S t o c k ) 12,704 (1,394) (-0) 14,111 (1,394) (-1) ( +1,406) ( ) ( -0) T o t a l N e t A s s e t s 12,255 13,659 ( +1,403) Total Liabilities and 15,003 16,755 ( +1,752) T o t a l N e t A s s e t s -6-

8 (5) Financial Indicator (Millions of yen) 30.0% Ordinary income to net sales ratio ROA ROE 25.0% 20.0% 22.9% 21.3% 22.4% 22.0% 20.7% 19.9% 16.7% 16.6% 6% 16.2% 15.0% 10.0% 0% 5.0% 0.0% The 60th The 61st The 62nd -7-

9 Regime for the 63rd Fiscal Year Budgeting g g of helmet sales volume is 544,000 units, an increase of 22,000 units compared to the 62nd term. We believe that this volume can be achieved on the strength of a promising new model, which we will touch on later. On the other hand, operating profit is expected to decrease 7.9%, due to an assumed stronger yen in exchange rates and a rise in SG&A expenses. Provided there is no sharp rise in the yen that exceeds the opening budget or a deterioration in market conditions, the budget at this point is expected to be fully achievable. Foreign exchange sensitivity: 1 yen/1 dollar: consolidated net sales: 29 million yen, net income: 12 million yen 1 yen/1 euro: consolidated net sales: 54 million yen, net income: 23 million yen *These are only rough indications, and actual results may differ from these figures. -8-

10 Forecasts for the Fiscal Year Ending Sep. 30, 2019 (1) Consolidated Statements of Income (Millions of yen) Oct.17 -Sept.18 Oct.18 -Sept.19 Changes from Previous year(%) N e t S a l es 17, , Operating I n c o m e 3,734 3, O r d i n a r y I n c o m e 3,772 3, Profit attributable to owners of t 2,578 2, p a r e n t Net Income p e r S h a r e D i v i d e n d p e r S h a r e Notes: 1. The net income per share is calculated using the weighted average number of shares (excluding treasury stock) during the period. 2. The assumed exchange rates for the 2019 fiscal year are USD/JPY = and EUR/JPY =

11 (2) Consolidated Sales Composition by Region Total 18,150 Total 17,148 Total 15,641 (changes +1,507) (506 Thousands units) (521 Thousands units) Exchange rate (Millions 20,000 of 000 yen) 16,000 12,000 8,000 Exchange rate US$= EUR= Other Areas (11.9%) 1,858 (65 Thousands units) North America (13.7%) 2,138 (71 Thousands units) Overseas (74.0%) 11,557 (385 Thousands units) Europe (48.5%) 7,580 (248 Thousands units) Exchange rate US$= ( ) EUR= ( ) Other Areas (11.0%) 1,884 (changes +26) (62 Thousands units) North America (16.1%) 2,767(changes +628) (90 Thousands units) Overseas (73.3%) 12,562 (changes +984) (389 Thousands units) Europe (46.1%) 7,910(changes +330) (235 Thousands units) (changes + 1,001) (544 Thousands units) US$= (+ 0.22) EUR= ( ) Other Areas (10.0%) 1811(changes 1,811-73) (60 Thousands units) North America (18.0%) 3,272 (changes +504) (110 Thousands units) Overseas (76.0%) 13,797(changes + 1,234) (420 Thousands units) Europe (48.0%) 8,714 (changes +803) (250 Thousands units) 4,000 Japan (26.0%) 4,063 (120 Thousands units) Japan (26.7%) 4,586 (changes +522) (132 Thousands units) Japan (24.0%) 4,353 (changes -233) (124 Thousands units) 0 Oct.16-Sep.17 Oct.17-Sep.18 Oct.18-Sep.19 (Forecast) -10-

12 (3)Key Themes in the 63rd Term 1Improving productivity with expansion of production capacity (facilities, increase in headcounts) and JIT (improvement, kaizen activities, etc. 2Make a thorough analysis of customer needs and launch attractive new models through the convergence of electronics and IT. An increase in unit price is planned after that. 3Brand d strategy t 4Sales force enhancement in promising 4Sales force enhancement in promising markets -11-

13 1Expansion of production capacity From the 62nd term through the 64th term, the existing gp policy of enhancing gp production capacity from 500,000 to 600,000 units per year is firmly maintained. In order to achieve it, we will work diligently on capital investment (attachment,) increasing headcounts (attachment,) developing promising new models (attachment,) improving productivity through JIT improvement activities (attachment,) and enhancing our sales force (attachment.) Our production capacity in the 63rd term is planned to be 548,000 units, including 10 days holiday work. -12-

14 Capital Expenditures and Depreciation (Millions of Yen) 1,500 Investment for Molds of New Products Construction of Large Wind Tunnel Experiment Facility 1,200 2nd Enlargement of Painting Facility & Equipment in Both Factories Investment for Molds of New Products 1,073 1,099 1, Investment for Molds of New Products Large Wind Tunnel Experiment Facility Large scale investment to equipment and facility for growth is completed within current term Large scale investment to equipment and facility for growth is completed within current term 0 Investment to Equipment & Facility Depreciation Forecast Oct.07- Oct.08- Oct.09- Oct.10- Sept.11- Oct.12- Oct.13- Oct.14- Oct.15- Oct.16- Oct.17- Oct.18- Sept.08 Sept.09 Sept.10 Sept.11 Oct.12 Sept.13 Sept.14 Sept.15 Sept.16 Sept.17 Sept.18 Sept

15 CAPEX for the 63rd Fiscal Year Total 1,193,202 Thousands of Yen Main capital investments 1. Mold 355,000 Thousands of Yen 2. Cap bodies molding presses 166,800 Thousands of Yen 3. Robot grinder/expanded grinding workshop 89, Thousands of Yen 4. Open preform machines 62,300 Thousands of Yen -14-

16 Change of Employee (People) 600 Regular employee Contract worker Sep.2006 Sep.2007 Sep.2008 Sep.2009 Sep.2010 Sep.2011 Sep.2012 Sep.2013 Sep.2014 Sep.2015 Sep.2016 Sep.2017 Sep.2018 Sep.2019 Forecast -15-

17 JIT (Just in time) improvement activities Classroom lecture Onsite guidance -16-

18 Increase in unit prices of products Higher added value and production streamlining are a pair of wheels for sustaining Made in Japan. Headquarters side Plants side Product Planning Department Product planning Research (including new technologies) Strength of SHOEI Development Department Transforming ideas for mass production Plants Productivity improvement Product Design Section New functionality, innovative design Procurement Department Cost management Graphic Design Section Innovative design Quality Control Department Response to standards Maintenance of high quality -17-

19 2Increase in unit price by developing attractive new models Introduction of New Products to the Market < EX-ZERO > Vintage style full-face face model Japan Launching in November 2018 Suggested Retail Price : YEN 38,000 ~ YEN 46,000 (Excluding Sales Tax) -18-

20 < GT-Air Ⅱ> Full Face Helmet equipped with Sun Visor Europe Launching in March 2019 (*) (Initial Shipment : January 2019 (*) ) Suggested Retail Price Germany, France : EUR ~EUR629.00(Including VAT (Tax)) GT-Air : EUR ~ EUR579.00(Including VAT(Tax)) North America Launching in April 2019 (*) (Initial Shipment : January 2019 (*) ) Suggested Retail Price : US$ ~US$ (Excluding Sales Tax) GT-Air : US$ ~ US$670.99(Excluding Sales Tax) Japan Launching in Spring 2019 (*) (Initial Shipment : Spring 2019 (*) ) Suggested Retail Price : To be announced GT-Air : YEN45,000 ~ YEN56,000(Excluding Sales Tax) -19- * Launch schedules are subject to change.

21 The trend of average unit price for motorcycles helmets (units) 600 Sales unit price (Yen) 30,000 Sales quantity ,000 Unit price , , , ,000 0 Sep.2005 Sep.2006 Sep.2007 Sep.2008 Sep.2009 Sep.2010 Sep.2011 Sep.2012 Sep.2013 Sep.2014 Sep.2015 Sep.2016 Sep.2017 Sep

22 3 Brand strategy With an awareness that significant market expansion in developed countries is unlikely in future, we will aim to enhance our brand strength and retain consumers and dominant retailers by promoting PFS, utilizing the internet, and pursuing effective advertising. -21-

23 Marc Marquez -22-

24 Retain consumers by PFS -23-

25 4Sales force enhancement in promising markets Sales force enhancement in promising markets Development of products meeting the new helmet safety standards in the Chinese market. Preferential allocation of management resources to fields expected to grow in Asian markets other than China, such as Taiwan, Thailand, and Malaysia. -24-

26 Asian Market Trends Population (1 million people) GDP/capita (US$) China 1,386.4 China 8,643 Indonesia Indonesia 3,876 Philippines Philippines 2,976 Thailand 69.0 Thailand 6,591 Korea Malaysia Taiwan Hong Kong Singapore ,000 1,200 1,400 Korea Malaysia Taiwan Hong Kong Singapore 29,891 9,813 24,577 46,109 57, ,000 20,000 30,000 40,000 50,000 60,000 Sales units of motorcycles Sales units of large sized motorcycles The Company's sales volume for the 62 nd term China 15,087,000 China 12,597 China Indonesia 5,886,103 Indonesia 927 Indonesia Philippines 1,319,075 Philippines 2,538 Philippines Thailand 1,810,771 Thailand 51,500 Thailand Korea 81,919 Korea 0 Korea Malaysia 15,436 Malaysia 1,354 Malaysia Taiwan Hong Kong Singapore 909, ,000,000 10,000,000 15,000,000 20,000,000 Taiwan Hong Kong Singapore 3, ,000 20,000 30,000 40,000 50,000 60,000 Taiwan Hong Kong Singapore 0 5,000 10,000 15,000 20,

27 (13)Conclusion Summary Maintaining Basic Policy for Maintaining for Medium and Long Term Stable Growth and Stable Profit 1. Maintaining Healthy Financial Positions (Protect Own Company by Ourselves) 2. Maintain Made in Japan, focusing on higher value-added added products and production o rationalization. 3. Continuation of Investment 4. Targeting # 1 in All Premium Helmet Markets in the World 5. It takes 10 years to build a castle, but just one day for it to fall. We will not assign an irrational quota that could cause injustice. Move forward steadily in a simple, honest manner, but without sidestepping the challenges in front of us. 6. Fair distribution of retained earnings 50% dividend of profit after tax Distribution to employees Distribution to company (proper retained earnings kept) -26-

28 Thank you very much for your attention and please take good care of our SHOEI s helmets further on.