Business Results for FY Mar 2018 and Management Strategy 25 May 2018 MITSUBA Corporation
1/15 Overview of Business Activities 1. Results for 2. Forecast for FY03/2019 3. The 11th Mid-term Management Plan
2/15 1.Results for Summary of Business Results for FY 03/2018 400.0 350.0 300.0 250.0 200.0 150.0 100.0 Although sales increased for the full year in, operating income was negatively impacted by costs that arose in handling quality defects. (Impact of changing financial periods : Sales 49.1 billion, Operating income 4.7 billion) Consolidated Sales and Operating Income Sales 50.0 0.0 Consolidation of non-europe overseas affiliates based on an irregular 15-month financial period Consolidated Sales and Operating Income Sales Operating Income 3-month impact 327.9 338.0 340.0 22.6 19.1 14.4 387.1 FY03/2017 FY03/2019(Forecast) 49.1 17.0 Operating income 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0
3/15 Consolidated Operating Results for Consolidated FY03/2017 (A) (B) Change (B)-(A) % change (B)/(A) FY03/2019 Forecast Net sales 327.9 387.1 59.2 18% 340.0 Operating income 22.6 19.1 3.5 16% 17.0 Ordinary income 20.2 20.0 0.1 1% 17.0 Profit attributable to owners of parent 5.0 6.5 11.6-3.0 Outline Ordinary income Profit attributable to owners of parent Non-operating income JPY 3.5 (Interest income and dividend income JPY 1.3 Equity in income of affiliates JPY 0.8) Non-operating expenses JPY 2.5 (Interest expenses JPY 1.4) Extraordinary income JPY 10.9 (Settlement package, etc. 10.6 Provision for product warranties 2.5) Income taxes JPY 12.2 Profit attributable to non-controlling interests JPY 3.4
4/15 Consolidated Operating Results for (by Area) Net sales 150.0 100.0 50.0 0.0 FY03/2017 (15-month) 3-month impact 107.8 109.6 108.6 87.3 82.6 67.7 59.0 87.4 51.5 22.1 18.5 56.2 66.1 16.8 Japan The Americas Europe Asia China
5/15 Factor analysis of changes in consolidated ordinary income for FY03/2017 (Actual) 20.2 Decrease in added value, etc. 1.8 Costcutting measures +2.3 Effects of Increases in exchange rate labor costs and fluctuations expenses, etc. +0.9 9.3 +3-month impact +4.7 (Actual) 20.0 US dollar JPY 108.79 JPY 111.43 Euro JPY 120.54 JPY 127.95 Renminbi JPY 16.39 JPY 16.69 Others +3.0 results prior to adopting a 15-month period 15.2 Recording loss from difference in exchange rates between foreign currency asset evaluation and payment receipts JPY 2.9 Others JPY 0.1 4.9
6/15 Sales Composition (by Car Maker Group) for Strong sales to Honda, sales to the VW/Audi Group increased 14% FY03/2017 3.8% 3.9% 6.3% 19.5% 16.9% 49.5% 3-month impact 61.2 65.4 11.9 10.9 19.8 12.3 19.6 14.2 52.9 51.8 3.4% 4.4% 20.3% 49.6% 455.5 159.8 6.1% 16.1% FY03/2017 Honda Renault/Nissan Group. Subaru VW/Audi Gr. Toyota Group Others * Figures represent only the Transportation Equipment Business domain under the Summary of Financial Results.
7/15 Sales Composition (by Business) for Sales of roof motors and wipers mainly to European customers increased. FY03/2017 18.0% 33.4% 24.5% 24.2% 17.4% 34.5% 22.8% 24.3% 3-month impact 56.3 55.9 76.7 73.4 75.9 78.1 104.8 111.1 First Business (Field-of-vision systems) Second Business (Convenience and comfort systems) FY03/2017 Third Business (Empowering systems) Fourth Business (Motorcycles) Fifth Business (Others) * Figures represent only the Transportation Equipment Business domain under the Summary of Financial Results.
8/15 2.Forecast for FY03/2019 Global auto production volume forecast Projected to exceed 100 million cars in 2020, with significant growth in China. Unit: million cars 120.0 100.0 80.0 60.0 40.0 95.2 97.0 99.1 101.3 2.6 2.8 3.0 3.1 27.5 28.0 29.3 30.3 13.2 13.6 14.0 14.7 22.3 22.7 22.8 23.0 20.0 0.0 20.4 21.1 21.3 21.6 9.2 8.8 8.7 8.6 2017 2018 2019 2020 Japan The Americas Europe Asia China Others
9/15 2.Forecast for FY03/2019 Global motorcycle production volume forecast Unit: million m/c Projected to exceed 60 million motorcycles in 2018, given the expansion of the Indian market. 80.0 70.0 60.0 50.0 40.0 58.6 60.1 61.1 62.2 6.8 6.9 7.8 8.1 0.9 0.9 0.9 0.9 22.0 23.6 25.2 26.2 30.0 20.0 10.0 0.0 13.1 13.4 13.0 13.4 15.8 15.3 14.2 13.6 2017 2018 2019 2020 China ASEAN India Brazil Others
10/15 2.Forecast for FY03/2019 Sales for FY03/2019 are expected to slightly increase. Aim to improve the operating margin ratio by eliminating quality loss and improving productivity. Meanwhile, the operating environment will become increasingly severe with price competition and tough material market conditions. Consolidated Sales and Operating Income Sales 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 Sales Consolidation of non-europe overseas affiliates based on an irregular 15-month financial period 327.9 338.0 49.1 340.0 22.6 Operating income 19.1 14.4 387.1 3-month impact FY03/2017 FY03/2019(Forecast) 17.0 Operating income 35 30 25 20 15 10 5 0
11/15 Effect of Foreign Exchange Rate on Operating Income (Actual exchange rate for yen) FY03/2019 (Assumed exchange rate for yen) Foreign exchange sensitivity (JPY mln per yen) US Dollar 111.43 105.00 200 Euro 127.95 125.00 50 Renminbi 16.69 16.50 250 Capital Expenditures, Depreciation and Development Cost Actual (A) FY03/2019 Forecast (B) Change (B)-(A) JPY Real exchange rates: The average exchange rates in Japan (from April to March), Europe (from April to March) and overseas (from January to March 15-month). Capital Expenditures (*)23.0 18.5 4.5 Depreciation (*)18.3 16.5 1.8 Development Cost 15.8 16.5 0.6 (*)Amount of increase due to the change in financial period. Capital Expenditures +1.4 Depreciation +2.0
12/15 Forecast for FY 03/2019 (by Area) Net Sales 150.0 100.0 50.0 (15-month) 114.0 109.6 108.6 82.0 87.4 18.5 FY03/2019 67.7 23.0 56.2 3-month impact 82.6 53.0 66.1 68.0 0.0 Japan The Americas Europe Asia China
13/15 Sales Composition Forecast (by Car Maker Group) for FY03/2019 Sales to Subaru are expected to increase 7%. 3.4% 4.4% 6.1% 20.3% 16.1% 49.6% 3-month impact 65.4 69.1 10.9 9.8 19.6 14.2 21.1 13.3 FY03/2019 21.4% 51.8 49.8 3.0% 4.1% 49.5% 159.8 159.9 6.5% 15.4% FY03/2019 Honda Renault/Nissan Group Subaru VW/Audi Gr. Toyota Group Others * Figures represent only the Transportation Equipment Business domain under the Summary of Financial Results.
14/15 Sales Composition Forecast (by Business) for FY03/2019 Sales of wipers, mirrors, and roof motors are expected to be strong. 17.4% 34.5% 22.8% 24.3% 3-month impact 55.9 56.6 73.4 66.9 FY03/2019 17.5% 35.5% 20.7% 25.4% 78.1 81.9 111.1 114.7 FY03/2019 First Business (Field-of-vision systems) Second Business (Convenience and comfort systems) Third Business (Empowering systems) Fourth Business (Motorcycles) Fifth Business (Others) * Figures represent only the Transportation Equipment Business domain under the Summary of Financial Results.
15/15 3. The 11th Mid-term Management Plan From a global start to a new stage Create a new market Meet the needs for safety and security Individual growth and global communication
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