Third Quarter Results (ended December 31, 2016) Brother Industries, Ltd.

Transcription

1 Fiscal Year 2016 (ending March 31, 2017) Third Quarter Results (ended December 31, 2016) Brother Industries, Ltd. February 8, 2017 Information on this report, other than historical facts, refers to future prospects and performance, and has been prepared by our Management on the basis of information available at the time of the announcement. This covers various risks, including, but not limited to, economic conditions, customer demand, foreign currency exchange rates, tax rules, regulation and other factors. As a result, actual future performance may differ from any forecasts contained on this report.

2 Consolidated Results for FY2016 Q3 Rate of (w/o forex impact) Rate of (w/o forex impact) -8.8% -8.1% (+2.7%) 1,666 (+2.9%) Sales Revenue 4,769 5,228 1,813 Business Segment Profit % % Business Segment Profit Ratio 10.4% 8.6% 8.8% 10.0% Operating Profit % % Operating Profit Ratio 9.9% 9.9% 6.7% 11.7% Income before Tax % % Net Income % % Exchange Rates USD EUR <Main Points for FY2016 Q3> Sales Revenue: Although sales decreased on a yen basis due to a 20 billion yen large negative impact of the yen s appreciation, sales on a local currency basis increased due to steady growth of the P&S business mainly for hardware in respective regions and steady growth of the machine tools business and Domino business. Business Segment Profit: Business segment profit decreased due to a 3.8 billion yen negative impact of forex rate. Operating Profit: Operating profit decreased significantly due to reduced profit relating to foreign exchange contracts, which resulted from accelerated depreciation of the yen against the assumed exchange rate Brother Industries, Ltd. All Rights Reserved. 2

3 Highlight by business segment < FY2016 Q3 ( 3-month results ) > Sales Revenue Rate of Rate of (w/o forex impact) Total 1,666 1, % 2.9% Printing & Solutions 984 1, % -1.0% Personal & Home % -3.2% Machinery % 17.0% Network & Contents % -4.5% Domino business % 27.6% Other % -13.8% Business Segment Profit Rate of Total % Printing & Solutions % Personal & Home % Machinery % Network & Contents % Domino business % Other % Adjustment Operating Profit Rate of Total % Printing & Solutions % Personal & Home % Machinery % Network & Contents % Domino business % Other % Adjustment Brother Industries, Ltd. All Rights Reserved. 3

4 Main Factors for s in Business Segment Profit < FY2016 Q3 ( 3-month results ) > 2017 Brother Industries, Ltd. All Rights Reserved. 4

5 Highlight by business segment < FY2016 Q3 ( 9-month results ) > Sales Revenue Rate of Rate of (w/o forex impact) Total 4,769 5, % 2.7% Printing & Solutions 2,851 3, % 2.0% Personal & Home % -3.5% Machinery % -9.5% Network & Contents % -8.2% Domino business Other % -13.1% Business Segment Profit Rate of Total % Printing & Solutions % Personal & Home % Machinery % Network & Contents % Domino business Other % Adjustment % Operating Profit Rate of Total % Printing & Solutions % Personal & Home % Machinery % Network & Contents % Domino business Other % Adjustment % 2017 Brother Industries, Ltd. All Rights Reserved. 5

6 Main Factors for s in Business Segment Profit < FY2016 Q3 ( 9-month results ) > 2017 Brother Industries, Ltd. All Rights Reserved. 6

7 for FY2016 FY16 forecast Rate of FY15 Rate of (w/o forex impact) Sales Revenue 6,400 6, % 6, % (+3.6%) Business Segment Profit % % Business Segment Profit Ratio 9.4% 8.7% 8.1% Operating Profit % % Operating Profit Ratio 8.9% 8.7% 8.6% Income before Tax % % Net Income % % Exchange Rates USD EUR <Main Points for the Revised > Sales Revenue: Revised upward by 10 billion yen due mainly to the revisal of the assumed exchange rate ($1=105JPY to 115JPY, 1=115JPY to 120JPY). Business Segment Profit: Revised upward by 5 billion yen after progress on the improvement of profitability of the P&S business was mainly taken into consideration. Net Income: Revised upward by 4 billion yen due to the impact of tax effect accounting resulting from the acquisition of Xing Inc. as a 100% subsidiary of Brother in addition to an upward revision of pre-tax income Brother Industries, Ltd. All Rights Reserved. 7

8 for 2016 by business segment Sales Revenue FY16 Rate of FY15 Rate of Rate of (w/o forex impact) Total 6,400 6, % 6, % 3.6% Printing & Solutions 3,829 3, % 4, % 2.4% Personal & Home % % -0.3% Machinery & Solution % % -3.5% Network & Contents % % -7.4% Domino business % % 48.1% Other % % -7.5% Business Segment Profit FY16 Rate of FY15 Rate of Total % % Printing & Solutions % % Personal & Home % % Machinery & Solution % % Network & Contents % % Domino business % 38 - Other % % Adjustment Operating Profit FY16 Rate of FY15 Rate of Total % % Printing & Solutions % % Personal & Home % % Machinery & Solution % % Network & Contents % -5 - Domino business % 35 - Other % % Adjustment Brother Industries, Ltd. All Rights Reserved. 8

9 Printing & Solutions Sales Revenue & Operating Profit 15TY Sales Revenue 1, % -1.0% 3,177 2, % 2.0% 4,150 3,716 3, % 2.4% Communications & Printing equipment % -1.4% 2,813 2, % 1.7% 3,666 3,280 3, % 2.4% Americas % -0.7% 1, % 2.2% 1,393 1,238 1, % 3.3% Europe % -5.4% % 1.0% 1,221 1,054 1, % 0.3% Asia & Others % 6.2% % 0.8% % 1.9% Japan % -1.3% % 3.4% % 5.8% Electronic stationery % 1.7% % 4.1% % 2.5% Americas % -3.5% % 3.0% % 2.8% Europe % 4.4% % 3.9% % 0.9% Asia & Others % 5.0% % 8.1% % 7.0% Japan % 19.1% % 4.7% % -1.0% Business Segment Profit % % % - Operating Profit % % % - <Sales Revenue> Communications & Printing equipment <Sales Revenue> Electronic stationery <Operating Profit> 3,666 3,2803,383 2,813 2, % 5.8% 9.9% 12.6% 11.7% 11.5% 9.4% 15TY 2017 Brother Industries, Ltd. All Rights Reserved. 15TY 15TY 9

10 2017 Brother Industries, Ltd. All Rights Reserved. 10 Personal & Home Sales Revenue & Operating Profit 15TY Sales Revenue % -3.2% % -3.5% % -0.3% Americas % -6.9% % -6.7% % -1.7% Europe % 5.7% % 6.1% % 3.4% Asia & Others % 4.5% % -1.0% % 1.0% Japan % -8.3% % -5.6% % -1.1% Business Segment Profit % % % - Operating Profit % % % - <Sales Revenue> <Operating Profit> % % % % 9.6% % 5.4% 15TY 15TY

11 Machinery Business Sales Revenue & Operating Profit 15TY Sales Revenue % 17.0% % -9.5% % -3.5% Industrial sewing machines % -9.4% % -5.8% % -2.5% Machine tools % 52.0% % -16.1% % -7.0% Industrial Parts % 4.6% % 4.7% % 4.8% Business Segment Profit % % % - Operating Profit % % % - <Sales Revenue> <Operating Profit> Industrial Parts Machine tools ISM TY 2017 Brother Industries, Ltd. All Rights Reserved. 11.2% % 13.6% % % 5.3% 5.5% 15TY 11

12 Machinery Business Sales Revenue & Operating Profit 2017 Brother Industries, Ltd. All Rights Reserved TY Sales Revenue % 17.0% % -9.5% % -3.5% Industrial sewing machines % -9.4% % -5.8% % -2.5% Americas % -5.0% % -4.7% Europe % -12.0% % 0.6% % -1.4% -6.3% 4.2% Asia & Others % -9.5% % -7.5% % -4.6% Japan % -26.6% % -13.2% % -0.2% Machine tools % 52.0% % -16.1% % -7.0% Americas % % % - Europe % % % - Asia & Others % % % - Japan % % % - Industrial Parts % 4.6% % 4.7% % 4.8% Americas % -10.7% % 1.4% % 4.9% Europe Asia & Others % 40.8% % 22.5% % 26.4% Japan % 4.5% % 3.4% % 2.5% Business Segment Profit % % % - Operating Profit % % % -

13 Network & Contents Sales Revenue & Operating Profit 15TY Sales Revenue % % % Business Segment Profit % % % Operating Profit % % <Sales Revenue> <Operating Profit> % 8 6.2% 3.1% 8 2.2% -0.9% 4 0.9% 6 15TY % 2017 Brother Industries, Ltd. All Rights Reserved. 15TY 13

14 Domino Business Sales Revenue & Operating Profit 15TY Sales Revenue % 27.2% Americas % 55.2% Europe % 19.5% Asia & Others % 18.8% Business Segment Profit % Operating Profit % *The FY 2015 figures are the results for the nine months from the 2nd quarter when Domino became a consolidated company. *The figures for FY2016 Q3 (9-month) and FY2015 Q3 (9-month) are not shown because they are not comparable to each other. * The growth rates are shown on a British pound basis. <Sales Revenue> <Operating Profit> 13.0% % % 6.3% 7.2% 15TY 2017 Brother Industries, Ltd. All Rights Reserved. 15TY 14

15 R&D expenses / Capital expenditure / Depreciation and amortization / Inventories R&D expenses Capital expenditure / Depreciation & amortization Capital expenditure Depreciation & amortization Act Act Act Act 15TY Act Fct Act Act Act Act 15TY Act Fct Inventories (100 Millions of yen) Inventories Inventories / Cost of sales (Number of months) 1,292 1,224 1,302 1,400 1,375 1,269 1,133 1,129 1, Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec Brother Industries, Ltd. All Rights Reserved. *Jun-15 actual for Inventories does not include Domino business figures. 15

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