Results Announcement for the First Half of FY2015 (April 1, 2014 September 30, 2014)

Transcription

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2 Results Announcement for the First Half of (April 1, 2014 September 30, 2014) Honda City seat Securities code: 7313 First Section, Tokyo Stock Exchange

3 Outline Michio Inoue President Consolidated Results Outline for the First Half of Business Overview for the First Half of Outline of Consolidated Forecasts for Details Kazuhiko Hikida Senior Managing Director & Corporate Business Administration Division Executive General Manager Consolidated Results for the First Half of Consolidated Forecasts for

4 Outline Michio Inoue President Consolidated Results Outline for the First Half of Business Overview for the First Half of Outline of Consolidated Forecasts for Details Kazuhiko Hikida Senior Managing Director & Corporate Business Administration Division Executive General Manager Consolidated Results for the First Half of Consolidated Forecasts for

5 Consolidated Results Outline for the First Half of (April 1, September 30,2014)

6 Actual Production Volume for Honda Automobile Seats (First half of ) 6 Total seats produced Production volume according to region (Unit: 10,000 seats) (Unit: 10,000 seats) Consolidated Japan The Americas China Asia and Europe + 0.3% - 8.2% % % % First half of FY2014 First half of First half of FY2014 First half of First half of FY2014 First half of First half of FY2014 First half of First half of FY2014 First half of *Figures rounded down to the nearest 10,000 seats. (Source: TS TECH production data)

7 Consolidated Results Outline for the First Half of (April 1, 2014 September 30, 2014) 7 Comparison of first halves FY2014 Results Results Difference (Change) Net sales [million yen] 216, , (+0.0%) Operating income [million yen] Operating margin Variable factors Average exchange rate [USD] 20,485 17,567-2,918 (-14.3%) 9.5% 8.1% Net sales Exchange rate impact Changes to model makeup Operating income Exchange rate impact The effects of decreased production in Thailand Changes to model makeup

8 Consolidated Results Outline for the First Half of (April 1, 2014 September 30, 2014) 8 first half results compared with initial Initial (April 25) First half results Difference (Change) Net 売上高 sales [million [ 百万円 yen] 213, ,133 +3,133 (+1.5%) Operating 営業利益 income [ 百万円 ] [million yen] Operating margin Variable factors Average exchange rate [USD] 16,500 17,567 +1,067 (+6.5%) 7.7% 8.1% ( 100.0) Net sales Exchange rate impact Changes to model makeup Decreased order volume from major customers Operating income Changes to model makeup Cost cutting Decreased order volume from major customers Exchange rate impact

9 Business Overview for the First Half of April 1, 2014 September,

10 10 Key Models Entering Mass Production in (Apr.-Sept. 2014) Honda Japan April NM4-01 VFR800F 第 1 May 四半期 Gold Wing F6C June July 第 2 August 四半期 September Automobiles Motorcycles, etc. White: New model/full model change Gray: Minor model change CRF250R The Americas RDX (U.S.) FIT (Brazil) CIVIC (Brazil) ACCORD (U.S.) ODYSSEY (U.S.) CITY (Brazil) China CIVIC ODYSSEY Asia and Europe CITY (Philippines) JAZZ (Thailand) JAZZ (Indonesia) ACCORD (Thailand) CITY CNG (Thailand) MOBILIO (India) MOBILIO (Thailand) SUZUKI Kawasaki YAMAHA VIKING (U.S./YAMAHA) MULE PRO FXT (U.S./Kawasaki) RM-Z450 (SUZUKI) RM-Z250 (SUZUKI) ESCUDO Doors (SUZUKI) JIMNY Doors (SUZUKI)

11 11 Key Models Entering Mass Production in (Apr.-Sept. 2014) Honda CITY Door Full model change The fuel efficient car now weighs even less Launch : 2014 April (Philippines) Production sites Order September (Brazil) : Philippines, Brazil (Production began earlier in India and Thailand) : Seats, doors 8% lighter than the previous model [equivalent to the weight of one Philippine spec seat] フロントシート Significantly lower costs Significantly reduced costs by using the same parts as the FIT Improved occupant comfort Made rear seats more comfortable without compromising performance by making seatbacks even thinner

12 12 Business Overview for the First Half of Establishment of a new company in India: Production hub for motorcycle seats Artistic rendering of completed building TS TECH MANDAL PRIVATE LIMITED Future site of the company TS TECH SUN RAJASTHAN Gujarat Rajasthan New company Principal operations:manufacture of seats for motorcycles Location Capital stock : Gujarat, India Establishment : May 2014 Start of operations Lot area: about 20,000 m2 : 460 million rupees (roughly 760 million) :September 2015 (scheduled) Building area: about 4,000 m2 Construct a manufacturing system to accommodate expansion of major customers motorcycle business in India

13 Business Overview for the First Half of Our first appearance at IZB2014, a German exhibition for automotive companies Internationale Zulieferer Börse: A biannual exhibition for international automotive companies held by VW and the city of Wolfsburg Dates : Oct , 2014 Location:Wolfsburg, Germany (near VW headquarters) Number of exhibitors:about 800 companies Notable items on display Component technology Global market seat frame 4-way headrest Reinforced lock line-up Illuminated door panels Products Cradle seat for the Japanese Odyssey Doors and seats for the City and Fit Aggressive development of sales promotion to expand sales to companies other than Honda 13

14 Business Overview for the First Half of The Hungary plant is steadily progressing toward the start of operations Installation of manufacturing equipment TS TECH Hungary Kft. Office Progress report Building for heavy machinery and office completed Installation of manufacturing equipment underway (as of the end of Oct. 2014) Scheduled to begin production of 3 rd -row seats for Volkswagen (next-gen SUV) in May 2015 Upcoming plans Hiring of manufacturing personnel, establishment of quality levels, etc. Start of operations: May 2015 (scheduled) 14

15 15 Business Overview for the First Half of Relocation of a plant in Guangzhou, China Artistic rendering of completed building GUANGZHOU TS AUTOMOTIVE INTERIOR SYSTEMS CO., LTD. Lot area 2x larger Current plant About 68,000 m2 New plant About 133,000 m2 Building area About 1.6x larger Current plant About 40,000 m2 New plant About 66,000 m2 Principal operations:manufacture of seats for automobiles New location: Zengcheng District, Guangzhou, Guangdong, China Zengcheng Economic & Technological Development District (the same district, but roughly 12 km northeast of the current location) Start of operations :July 2016 (scheduled) The move is in conjunction with Zengcheng District s urban development plans

16 Business Overview for the First Half of Measures to Strengthen the Americas Segment

17 Business Overview for the First Half of The start of operations at a new plant in Mexico: A component supply hub for the Americas TST MANUFACTURING DE MEXICO, S. DE R.L. DE C.V. New company Guanajuato INDUSTRIAS TRI-CON DE MEXICO, S.A. DE C.V. Tamaulipas Principal operations:manufacture of seats and door components for automobiles (Fit, CR-V, etc.) Location Lot area : Guanajuato, Mexico : About 150,000 m2 Investment : About 47 million dollars(roughly 4.3 billion $1: 92) Start of operations : October 2014 Further strengthen component competitiveness through the consolidation of automobile seat and door component manufacturing

18 Business Overview for the First Half of Expansion of the Americas segment headquarters TS TECH AMERICAS, INC. Section to be expanded Expansion of the east side of the existing building (partially two-stories) Roughly 2x bigger: existing 5,386 m2 new 10,568 m2 Building to be completed at the end of 2014 (scheduled) Strengthen the segment s sales and R&D system as the foundation for business expansion in the Americas

19 Business Overview for the First Half of North America Expansion of the Americas segment headquarters to Central America strengthen the sales Strengthen component competitiveness and R&D system through consolidation of production South America Strengthen cost competitiveness through the construction of a new sewing plant and installation of injection facilities The aim is to further increase competitiveness and expand sales to customers other than Honda by the coordination and strengthening of all regions in the Americas 20

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21 Outline of Consolidated Forecasts for April 1, 2014 March 31, 2015

22 23 Outline of Consolidated Forecasts for First half Second half Full year Results Initial [April 25] Midterm [Oct. 30] Difference Change Initial [April 25] Midterm [Oct. 30] Difference Change Net sales [100 million yen] Operating margin Average exchange rate USD CNY 2,161 2,250 2, % Operating income [100 million yen] 8.1% 9.3% 8.1% 8.6% 8.1% ( 100.0) ( 15.8) ( 107.0) ( 17.2) -16.7% 4,380 4, % % 見通しの変動要因 Net sales Exchange rate impact Decreased order volume from major customers Operating income Reduced costs Cost cutting Exchange rate impact Decreased order volume from major customers

23 Outline Michio Inoue President Consolidated Results Outline for the First Half of Business Overview for the First Half of Outline of Consolidated Forecasts for Details Kazuhiko Hikida Senior Managing Director & Corporate Business Administration Division Executive General Manager Consolidated Results for the First Half of Consolidated Forecasts for

24 Consolidated Results for the First Half of April 1, 2014 September 30, 2014

25 Consolidated Results Outline for the First Half of Results compared to the first half of FY2014 (Unit: million yen) First half of FY2014 Results Sales ratio First half of Results Difference Change Sales ratio Net sales 216, % 216, % % Operating income 20, % 17, % -2, % Ordinary income 21, % 19, % -2, % Net income 12, % 11, % -1, % Capital investment 9,557 8, % Depreciation 4,259 4, % R&D expenses 5,444 6, % Exchange rates (First half average) USD CNY Cash dividends per share (End of the first half) Net sales Increase in revenue reflecting the impact of exchange rates Decrease in revenue due to changes to model makeup Operating income/ordinary income/net income Income decreased due to changes to model makeup, offsetting the the impact of exchange rates Decrease in income as a result of labor costs and increased costs Main capital investments A decline in investments, etc. in Asian manufacturing hubs 26

26 Net Sales According to Business Segment Results compared to the first half of FY2014 Revenue roughly the same as the first half of FY2014 (Unit: million yen) 216, ,133 2,196 3, (Up 19.0%) 2,563 2,955 Other 1.0% Motorcycles 1.5% Automobiles 97.5% 210, (Down 9.4%) +36 (Up 0.0%) 210,614 Other 1.2% Motorcycles 1.3% Automobiles 97.5% First half of FY2014 First half of 27

27 Net Sales According to Product: Automobile Segment Results compared to the first half of FY Revenue increased, particularly in seats (Unit: million yen) 210, ,614 Other 3.0% Roofs 0.2% Doors 8.3% Seats 88.5% 6, , , (Down 7.1%) -136 (Down 42.5%) -939 (Down 5.4%) +1,565 (Up 0.8%) 5, , ,985 Other 2.8% Roofs 0.1% Doors 7.8% Seats 89.3% First half of FY2014 First half of

28 29 Results According to Segment (Net Sales) Japan The Americas Year-on-year -1,435 (Down 3.2%) 106, ,274 Year-on-year -285 (Down 0.3%) ( Million yen ) 45,175 43, FY 2014 年 3 月期 2015 FY 年 月期 第 2 First 四半期累計 half 第 2 四半期累計 First half Reasons for year-on-year rise/fall Decrease in revenue with a decline in sales of parts supplied from Japan Increase in revenue with increased order volume from major customers ( Million yen ) 2014 FY 年 月期 2015 FY 年 月期 First half First half Reasons for year-on-year rise/fall Decrease in revenue with decreased order volume from major customers Increase in revenue due to the impact of exchange rates Exchange rate impact +3,698 million yen China Asia and Europe Year-on-year +7,296 (Up 16.5) Year-on-year -6,736 (Down 18.5%) ( Million yen ) 51,457 44, FY 年 月期 2015 FY 年 月期 First half First half Reasons for year-on-year rise/fall Increase in revenue due to the impact of exchange rates Increase in revenue with increased order volume from major customers Exchange rate impact +3,750 million yen ( Million yen 36,447 29, FY 年 月期 2015 FY 年 2015 ) 3 月期 First half First half Reasons for year-on-year rise/fall Decrease in revenue with decreased order volume from major customers in Thailand Increase in revenue due to the impact of exchange rates Exchange rate impact +490 million yen

29 30 Results According to Segment (Operating Income) Japan The Americas Year-on-year -555(Down 17.9%) Year-on-year -857 (Down 10.0%) ( Million yen ) 3,095 FY 2014 First half 2, % 5.8% Operating margin FY 2015 First half Reasons for year-on-year rise/fall Decrease in income due to decline in revenue Decrease in income as a result of increased costs ( Million yen ) 8, % FY 2014 First half 7, % Operating margin FY 2015 First half Reasons for year-on-year rise/fall Decrease in income due to decline in revenue Decrease in income as a result of various increased costs Increase in income due to the impact of exchange rates Exchange rate impact +219 million yen 2014 年 3 月期 2015 年 3 月期 China 2014 年 3 月期 2015 年 3 月期 Asia and Europe 8,365 Year-on-year +2,847 (Up 51.6%) Year-on-year -3,042(Down 54.9%) ( Million yen ) 5, % FY 2014 First half 16.3% Operating margin FY 2015 First half Reasons for year-on-year rise/fall Increase in income due to increase in revenue Increase in income due to the impact of exchange rates Exchange rate impact +470 million yen ( Million yen ) 5,541 FY 2014 First half 2, % 8.4% Operating margin FY 2015 First half Reasons for year-on-year rise/fall Decrease in income due to decline in revenue Decrease in income as a result of various increased costs Exchange rate impact +86 million yen

30 Reasons for Increase/Decrease in Operating Income Results compared to the first half of FY Income decreased due to changes to model makeup and increased expenses, offsetting the exchange rate impact -2,918(Down 14.3%) (Unit: million yen) 20,485 Fluctuating sales & changes to model makeup -3,386 Exchange rates 805 Reduced costs 1,252 Fluctuating material costs -181 Increased SG&A expenses -1,408 17, % 8.1% First half of FY2014 First half of

31 32 Quarterly Results Net sales Operating income 1,418 (Up 1.3%) -1,322 (Down 1.2%) -1,305 (Down 13.0%) 124, , , , , ,853-1,612 (Down 15.5%) 10,422 10,062 9,564 9,060 8,809 8,757 ( Million yen ) ( Million yen ) 1Q 2Q 3Q 4Q 1Q 2Q FY2014 1Q 2Q 3Q 4Q 1Q 2Q FY2014

32 33 Consolidated Results Outline for the First Half of Results compared to the released on April 25 (Unit: million yen) First half of Forecasts (April 25) Sales ratio First half of Results Difference Change Sales ratio Net sales 213, % 216, % 3, % Operating income 16, % 17, % 1, % Ordinary income 17, % 19, % 1, % Net income 9, % 11, % 1, % Capital investment 11,550 8,605-2, % Depreciation 4,624 4, % R&D expenses 6,700 6, % Exchange rates (First half average) USD CNY Cash dividends per share (End of first half) Net sales Increase in revenue due to the impact of exchange rates Increase in revenue due to changes to model makeup Decrease in revenue with decreased order volume from major customers Operating income/ordinary income/net income Increase in income due to changes to model makeup Increase in income due to the impact of exchange rates Decrease in income due to a decrease in revenue

33 Reasons for Increase/Decrease in Operating Income Results compared to the released on April Income increased, primarily due to the exchange rate impact and cost cutting measures 16,500 Fluctuating sales & changes to model makeup ,067(Up 6.5%) Exchange rates 377 Reduced costs 213 Fluctuating material costs 4 Decreased SG&A expenses 584 (Unit: Million yen) 17, % 8.1% First half of (April 25 ) First half of (Results)

34 Consolidated Forecasts for April 1, 2014 March 31, 2015

35 Consolidated Forecasts for Revised compared to results from FY2014/Revised compared to the released on April 25 FY2014 Results Forecasts(April 25) Revised (Oct. 30) Year-onyear (Unit: million yen) Change Net sales 457, , , % -1.1% Operating income 39,133 37,500 35, % -6.7% Ordinary income 42,937 40,000 38, % -3.7% Net income 23,900 22,700 21, % -3.5% Capital investment 19,960 20,000 22, % 12.5% Depreciation 8,628 9,600 9, % -2.9% R&D expenses 11,635 13,400 13, % -1.8% Exchange rates USD CNY Full year average Full year average 15.9 Full year average Full year average 16.1 First half average Second half average First half average 16.7 Second half average 17.2 Cash dividends per share Year-on-year Net sales Decrease in revenue with decreased order volume from major customers Increase in revenue due to the impact of exchange rates Operating income/ordinary income/net income Decrease in income due to a decrease in revenue Increase in income due to the impact of exchange rates Compared to the (April 25) Net sales Decrease in revenue with decreased order volume from major customers Increase in revenue due to the impact of exchange rates Operating income/ordinary income/net income Decrease in income due to a decrease in revenue Increase in income due to the impact of exchange rates 36

36 37 Forecasts According to Segment (Net Sales) Japan The Americas Year-on-year -11,555(Down 11.0%) April 25-7,980(Down 7.9%) 214, , ,960 Year-on-year -1,658(Down 0.8%) April ,010(Up 7.6%) ( million yen ) 104, ,320 FY 2014 results April 25 93,340 Revised Reasons for year-on-year rise/fall Decrease in revenue due to changes to model makeup Decrease in revenue with a decline in sales of parts supplied from Japan Reasons for rise/fall from April 25 Decrease in revenue with decreased order volume from major customers ( million yen ) FY 2014 results April 25 Revised Reasons for year-on-year rise/fall Decrease in revenue with decreased order volume from major customers Increase in revenue reflecting the impact of exchange rates Reasons for rise/fall from April 25 Increase in revenue reflecting the impact of exchange rates Increase in revenue due to changes to model makeup Exchange rate impact Year-on-year April 25 +9,123 million yen +9,015 million yen China Asia and Europe Year-on-year -2,023(Down 1.9%) April 25-5,310 (Down 4.9%) Year-on-year -9,771(Down 14.4%) April 25-4,390 (Down 7.0%) ( million yen ) 104, ,350102,040 FY 2014 results April 25 Revised Reasons for year-on-year rise/fall Decrease in revenue with decreased order volume from major customers Increase in revenue reflecting the impact of exchange rates Reasons for rise/fall from April 25 Decrease in revenue with decreased order volume from major customers Increase in revenue reflecting the impact of exchange rates Exchange rate impact Year-on-year April 25 +6,312 million yen +5,205 million yen ( million yen ) 67,811 FY 2014 results 62,430 April 25 58,040 Revised Reasons for year-on-year rise/fall Decrease in revenue due to changes to model makeup Increase in revenue reflecting the impact of exchange rates Reasons for rise/fall from April 25 Decrease in revenue with decreased order volume from major customers Decrease in revenue due to changes to model makeup Increase in revenue reflecting the impact of exchange rates Exchange rate impact Year-on-year +1,794 million yen April 25 +2,424 million yen

37 38 Forecasts According to Segment (Operating Income) Japan The Americas ( million yen ) 6, % FY 2014 results 9, % 7, % Operating margin April 25 Revised Year-on-year +796(Up 11.6%) April 25-1,770(Down 18.7%) Reasons for year-on-year rise/fall Increase in income due to cost reductions Decrease in income due to decrease in revenue Reasons for rise/fall from April 25 Decrease in income due to decrease in revenue ( million yen ) 16, % FY 2014 results 14, % 15, % Operating margin April 25 Revised Year-on-year -1,034(Down 6.3%) April 25 +1,300(Up 9.3%) Reasons for year-on-year rise/fall Increase in income due to earnings recovery measures Decrease in income due to decrease in revenue Increase in income due to the impact of exchange rates Reasons for rise/fall from April 25 Increase in income due to the impact of exchange rates Increase in income due to changes to model makeup Exchange rate impact Year-on-year +568 million yen April million yen China Asia and Europe ( million yen ) 13, % FY 2014 results 15,120 14, % 14.8% Operating margin April 25 Revised Year-on-year +1,149(Up 8.2%) April (Up 4.4%) Reasons for year-on-year rise/fall Increase in income due to earnings recovery measures Increase in income due to changes to model makeup Decrease in income due to decrease in revenue Reasons for rise/fall from April 25 Increase in income due to changes to model makeup Increase in income due to the impact of exchange rates Decrease in income due to decrease in revenue Exchange rate impact Year-on-year April million yen +705 million yen ( million yen ) 7, % FY 2014 results 6,160 2, % 5.0% Operating margin April 25 Revised Year-on-year -5,074(Down 63.5%) April 25-3,240(Down 52.6%) Reasons for year-on-year rise/fall Increase in income due to earnings recovery measures Decrease in income due to decrease in revenue/changes to model makeup Decrease in income as a result of various increased costs Reasons for rise/fall from April 25 Increase in income due to earnings recovery measures Decrease in income due to decrease in revenue Decrease in income due to changes to model makeup Exchange rate impact Year-on-year April million yen +115 million yen

38 Consolidated Forecasts for Operating Income Revised compared to FY Increase in income due to exchange rate impact and increased order volume from major customers -4,133(Down 10.6%) (Unit: million yen) 39,133 Fluctuating sales & changes to model makeup -10,802 Exchange rates 1,588 Reduced costs 4,729 Fluctuating material costs -626 Decreased SG&A expenses , % 8.1% FY2014 (Revised )

39 Consolidated Forecasts for Operating Income Revised compared to the released on April Increase in income due to cost cutting measures as well as changes to model makeup and exchange rate impact -2,500(Down 6.7%) (Unit:million yen) 39,133 37,500 Fluctuating sales & changes to model makeup -5,178 Exchange rates 1,326 Reduced costs 619 Fluctuating material costs 79 Decreased SG&A expenses , % 8.6% 8.1% FY2014 (April 25 ) (Revised )

40 41 Capital Investment and Depreciation The revised for expect capital investments to increase, reflecting the construction of a new plant in Mexico FY2014 Results April 25 First half results Second half Japan 5,380 4,250 Capital investment(by segment) (Unit: million yen) The Americas 9,400 8,300 6,698 4,200 6,412 1,653 (Unit: million yen) Capital investment Total 19,960 20,000 22,500 13,895 2,547 2,988 8,605 FY2014 April 25 Results Revised China FY2014 FY2014 '14.3 '15.3 '15.3 Results April 25 Results April 25 Revised Asia and Europe 7,227 Revised Depreciation Total 654 2,600 4,400 4,850 4,500 2,910 2,924 1,490 1,576 8,628 9,600 9,320 4,849 4,471 FY2014 FY2014 Results April 25 Revised Results April 25 Revised FY2014 '14.3 '15.3 '15.3 Results April 25 Revised

41 Thank you for listening Forward-looking statements and earnings contained in this presentation represent TS TECH s assumptions based on information currently available and are subject to a degree of risk and uncertainty. Therefore, please bear in mind that actual results may vary significantly from the forward-looking statements contained in this presentation due to a range of variable factors. IR inquiries TS TECH Co., Ltd. Public Relations Section, Administration Department Phone:

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