Financial Results for Fiscal Year 2014

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Transcription:

Financial Results for Fiscal Year 214 (ended March 31, 215) Brother Industries, Ltd. May 7, 215 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.

Highlight for FY214 <1 Millions of Yen> 7,72(+14.7%) Sales of Machine tools and Home sewing machines drove overall sales. Operating Income Current Profits 575(+32.9%) Operating income from Machine tools significantly increased while the yenʼs depreciation also contributed. 516(+44.8%) Lower loss on foreign exchange contracts. Income Before Tax 654(+95.1%) Significantly increased due to a gain on a sale of Property. Net Income 54(+18.8%) Significantly rose due to increased income before tax and tax effect accounting. 215 Brother Industries, Ltd. All Rights Reserved. 2

Highlight for FY214 <1 Millions of Yen> P&S P&H 4,743/+1.1%(+4.3%) Steady sales in Europe and Asia excluding Japan; sluggish demand in Japan. 514/+18.9%(+11.9%) Sales increased due to the launch of new high-end models. M&S N&C Industrial Part 1,6/+59.5%(+53.4%) Continued strong sales of Machine tools to IT and automobile-related customers. 49/+2.9% Sales increased marginally due to weak sales of equipment, despite steady operation in the karaoke shop business. 174/+8.4%(+7.1%) Steady demand in Japan; growing sales in North America. 215 Brother Industries, Ltd. All Rights Reserved. 3

CS B215(Mid-Term Business Strategy) The target of the mid-term strategy CS B215 has come within reach. CS B 215 Targets (1 million yen) 7,5 Grow in all business and all regions Development/expansion of new business/new product Expansion in emerging market Promote global business strategy Promote M&A and business alliance Operating income 58 6,168 7,72 7,5 Operating Income Ratio 7.7% 5,28 4,974 5,161 21 211 212 213 214 215 215 Brother Industries, Ltd. All Rights Reserved. 4

Highlight on forecast for FY215 <1 Millions of Yen> 7,6(+7.5%) Set high goals in all businesses and all regions toward the achievement of the mid-term plan. Operating Income 58(+.8%) Operating income growth is expected, offsetting the negative impact of forex and selling expense increase. Current Profits 56(+8.6%) Unlike the prior year, no significant loss on forex hedge is expected to arise. Income Before Tax 545(-16.7%) Unlike the prior year, no large gain on sale of property is expected to arise. Net Income 355(-34.2%) Net income is forecasted to decrease because the special factor that arose in the prior year is not expected to reoccur. 215 Brother Industries, Ltd. All Rights Reserved. 5

Main measures in Printing & Solutions business <Make aggressive investments for sales growth in all regions and increase sales> Communication & Printing equipment Electronic stationery Service & Solutions Maintain retail market share in developed countries Increase sales in emerging countries Clarify target customers and increase sales to SMB customers. For inkjet printers, increase sales to corporate customers in developed countries and sales of models with super high-yield ink tank in emerging countries Growth in the OEM business Realize steady growth in office area Accelerate growth in solution area Expand in emerging markets Launch new products head-mounted display AiRScouter WD-2S Expand lineup ranging from mobile to high-end by launching high-end products Boost sales to SMB customers by enhancing product competitiveness and improving solutions High-end Scanner PDS-5/6 6/8PPM MFC-L274DW HL-121W Tapecreator TP-M5N Web conference system OmniJoin 215 Brother Industries, Ltd. All Rights Reserved. 6

Main measures in Machinery & Solution business Industrial sewing machine Machine tools Expand market share in China and other Asian countries by launching new lock stitcher model that realizes high quality sewing and productivity Enhance the ability to deliver solutions and increase sales of programmable electronic pattern sewing machines Growth in the garment printer business Expand technical support to dealers to increase sales of strategic models Increase showrooms and service centers in China and other Asian regions Enhance sales resources in China and other Asian regions and increase sales to stable markets centering on automobilerelated customers Enables large workpiece machining of automobile parts, for example, which was not possible using conventional #3 machines Direct Drive Programmable Electronic Pattern Sewer BAS311-H Garment Printer SPEEDIO S1X1 Cylinder head cover (truck) Oil pan 215 Brother Industries, Ltd. All Rights Reserved. 7

Main measures in other businesses Personal & Home Network & contents Industrial parts Increase sales of mid-range and high-end models Increase sales by launching new mid-range models. Increase sales in emerging countries Carry out sales strategy that meets market demands and increase sales. Increase sales in the craft business Increase customers by launching new cutting machine model. Increase number of karaoke machines in operation and market share by launching new models Growth in the directlymanaged shop business Increase shop sales through M&A and by opening new shops and improve profitability by thorough QSC*. Thorough low-cost operation Reduce cost thoroughly and reallocate management resources to necessary fields. Increase domestic sales by boosting sales of highefficiency IE3 gear motors Increase overseas sales by enhancing product lineup of reducers for overseas markets Strengthen production capacity by developing factory environment Innov-is XV85D High-Efficiency IE3 Gear Motors Servomotor Reducer *Quality, Service, Cleanness 215 Brother Industries, Ltd. All Rights Reserved. 8

M&A schedules of Domino Printing Sciences Date States Domino shareholder approval 15 April Done Anti-trust clearances Before the end of May US.. Done EU/China.. Before the end of May Effective Date of the Scheme 11 June (TBD) - IR meeting of the acquisition Early August (only Japanese) Large Meeting in Tokyo 215 Brother Industries, Ltd. All Rights Reserved. 9

Dividend and Payout ratio Basic policy remains unchanged with consolidated payout ratio of about 3% Stable return to shareholders: Annual dividend for FY 215 increases to 36 yen per share, up 2% <Dividend record> 21 211 212 213 214Fct 215Fct <Total return ratio> 21 211 212 213 214Fct 215Fct 215 Brother Industries, Ltd. All Rights Reserved. 1

ROE record Despite no special positive factors, ROE for FY 215 is forecasted to be 1% 13.1% ROE based on business profit 215 Brother Industries, Ltd. All Rights Reserved. 11

Details of Financial Results for FY214(ended March 31,215) and Forecasts for FY215(ending March 31,216)

Consolidated Results for FY214 (ended March 31,215) Year ended Mar. 31, 215 3/215 3/214 Rate of [Actual] [Actual] (w/o forex impact) 7,72 6,168 94 Non-operating Income (Loss) Current Profits Extraordinary Income (Loss) Income Taxes Net Income 14.7% (+9.5%) 575 433 142 32.9% 8.1% 7.% 1.1% -6-77 17 516 356 159 44.8% 138-21 159 114 143-29 54 192 347 18.8% (Yen) Exchange USD 11.3 1. 1.3 Rates EUR 138.68 134.1 4.67 Net sales increased, driven by Machine tools and Domestic sewing machines sales and the yenʼs depreciation Operating income increased due to strong sales in the M&S business and the yenʼs depreciation Net income significantly increased due to a gain on the sale of property and the tax effect accounting 215 Brother Industries, Ltd. All Rights Reserved. 13

Main Factors for s in < Results for FY214 (ended March 31, 215) > 215 Brother Industries, Ltd. All Rights Reserved. 14

Printing & Solutions Sales & < Results for FY214 (ended March 31, 215) > 6, 5 5, 4,38 4,743 4 357 2.% 4, (w/o forex impact) 3 31 3, 2, 1, 3,841 4,218 467 525 3/214 3/215 Communications & Printing equipment +9.8% ( +4.2% ) Electronic stationery +12.4% ( +5.7% ) Total +1.1% ( +4.3% ) 2 1 7.2% 7.5% 3/214 3/215 1.%.% Communications & Printing equipment Geographical Sales 3/214 3/215 (w/o forex impact) Americas 1,54 1,68 +11.7% (+3.5%) Europe 1,327 1,417 +6.8% (+2.6%) Asia & Others 579 694 +19.8% (+13.4%) Japan 431 427 -.9% (-.9%) Electronic stationery Geographical Sales 3/214 3/215 (w/o forex impact) Americas 216 253 +17.2% (+7.9%) Europe 147 158 +7.3% (+2.7%) Asia & Others 62 78 +26.% (+19.2%) Japan 42 35-15.2% (-15.2%) In the Asia & Others region excluding Japan, hardware sales steadily increased. Consumables sales remained solid in each region. Sales in Japan decreased year-on-year due to lingering weak demand resulting from the impact of the consumption tax hike Despite an increase in SGA, operating income rose due to increased sales and the positive effect of the yenʼs depreciation. *In accordance with a change in scope of consolidation this year, some figures, which were presented in Japan in the prior year, are reclassified into Asia and Others. 215 Brother Industries, Ltd. All Rights Reserved. 15

Personal & Home Sales & < Results for FY214 (ended March 31, 215) > 8 8 4.% 6 514 6 49 3.% 433 42 4 4 2.% 2 (w/o forex impact) 2 1.% Home sewing machines 9.7% 9.6% 3/214 3/215 +18.9% ( +11.9% ) 3/214 3/215.% Home sewing machines Geographical Sales 3/214 3/215 (w/o forex impact) Americas 229 296 +29.3% (+18.9%) Europe 17 111 +4.3% (+.8%) Asia & Others 46 6 +28.3% (+22.7%) Japan 51 48-6.% (-6.%) Sales remained strong in the Americas due to the launch of new high-end models. Operating income increased due to increased sales and the launch of new models. *In accordance with a change in scope of consolidation this year, some figures, which were presented in Japan in the prior year, are reclassified into Asia and Others. 215 Brother Industries, Ltd. All Rights Reserved. 16

Machinery & Solution Sales & < Results for FY214 (ended March 31, 215) > 1,5 2 4.% 162 1,2 1,6 15 3.% 9 6 3 631 268 363 273 733 (w/o forex impact) Industrial sewing machines +1.9% ( -5.7% ) Machine tools +11.9% ( +96.9% ) Total 1 5 5 7.9% 16.1% 2.% 1.% 3/214 3/215 +59.5% ( +53.4% ) 3/214 3/215.% Industrial sewing machines Machine tools Geographical Sales Geographical Sales 3/214 3/215 3/214 3/215 (w/o forex impact) Americas 45 54 +19.3% (+9.5%) Europe 38 43 +13.9% (+1.1%) Asia & Others 178 169-5.% (-13.1%) Japan 7 7 +2.9% (+2.9%) Americas 21 29 Europe 16 23 Asia & Others 282 622 Japan 44 59 +33.% +49.% +12.7% +34.3% For Industrial sewing machines, sales excluding the forex impact slightly decreased year-on-year due to very sluggish demand in China, despite growing demand for capital investment in the sewing industry in Southeast Asia, Europe and the Americas. For Machine tools, sales significantly rose due to growing demand from IT-related customers and due to strengthened operations to attract automobile-related customers. Operating income significantly rose mainly due to increased sales of Machine tools. *As machine tools are mostly exported to customers directly from Japan, sales are reported in ʻJapanʼ segment regardless of destination of exports. Therefore, for the purpose of this material, the regional breakdown ratios of exports from Japan multiplied by total consolidated sales is shown here. 215 Brother Industries, Ltd. All Rights Reserved. 17

Network & Contents Sales & < Results for FY214 (ended March 31, 215) > 8 2 2.% 6 476 49 1 5 1.% 4.9%.% -1.7% 2-1 -9-1.% 3/214 3/215 +2.9% -2 3/214 3/215-2.% Sales slightly increased year-on-year due to slower replacement demand for online karaoke machines, despite steady business operation in karaoke shops. Operating loss was due to decreased sales of equipment and an increase in expenses such as R&D cost. * Regional sales breakdown for Network & Contents is not referred to here because the major part of sales are made in Japan. 215 Brother Industries, Ltd. All Rights Reserved. 18

Industrial Part Sales & < Results for FY214 (ended March 31, 215) > 3 15 11 3.% 2 161 174 1 2.% 1 5 1.% 3/214 3/215 (w/o forex impact) +8.4% ( +7.1% ) 3 6.9% 1.6% 3/214 3/215.% Industrial Part Geographical Sales 3/214 3/215 Americas 2 23 +12.4% (+2.6%) Europe - (-) Asia & Others 5 - (-) Japan 141 147 +4.5% (+4.5%) Sales increased due to steady demand in Japan and strengthened operations in North America. Operating income fell due to increased fixed costs such as depreciation. 215 Brother Industries, Ltd. All Rights Reserved. 19

Consolidated Forecast for FY 215 ( ending March 31, 216) 3/216 3/215 [Forecast] [Actual] Rate of Non-operating Income (Loss) Current Profits Extraordinary Income (Loss) Income Taxes Net Income 7,6 7,72 528 7.5% (+7.6%) 58 575 5.8% 7.6% 8.1% -.5% -2-6 4 56 516 44 8.6% -15 138-153 19 114 76 355 54-185 -34.2% (Yen) Exchange USD 115. 11.3 4.97 Rates EUR 125. 138.68-13.68 Increase sales significantly with a focus on the P&S business by carrying out aggressive sales measures Achieve operating income at the same level as the prior year due to sales growth offsetting the negative impact of forex While net income is projected to decrease significantly due to absence of the specific positive factors that arose in the prior year, such as gain on sale of property, ROE is expected to be 1% 215 Brother Industries, Ltd. All Rights Reserved. 2

Printing & Solutions Sales & < Forecast for FY215 (ending March 31,216) > 6, 5, 4, 3, 2, 4,743 4,218 5,9 4,56 (w/o forex impact) Communications & Printing equipment +6.8% ( +7.8% ) Electronic stationery 5 4 3 2 357 337 2.% 1.% 1, +11.3% ( +11.4% ) Total 1 7.5% 6.6% 525 584 3/215 Actual 3/216 Forecast +7.3% ( +8.2% ) 3/215 Actual 3/216 Forecast.% Communications &Printing equipment Geographical Sales 3/215 Actual 3/216 Forecast (w/o forex impact) Americas 1,68 1,898 +13.% (+9.8%) Europe 1,417 1,316-7.1% (+1.6%) Asia & Others 694 855 +23.3% (+19.2%) Japan 427 437 +2.2% (+2.2%) Electronic stationery Geographical Sales 3/215 Actual 3/216 Forecast (w/o forex impact) Americas 253 292 +15.3% (+11.6%) Europe 158 15-4.7% (+3.9%) Asia & Others 78 93 +19.% (+14.2%) Japan 35 48 +37.4% (+37.4%) Increase sales by making aggressive investments for sales growth in all regions Operating income is expected to decrease due to the negative impact of forex and adverse effects such as sales promotion cost increase *In accordance with a change in scope of consolidation this year, some figures, which were presented in Japan in the prior year, are reclassified into Asia and Others. 215 Brother Industries, Ltd. All Rights Reserved. 21

Personal & Home Sales & < Forecast for FY215 (ending March 31,216) > 8 8 4.% 6 514 53 6 49 51 4 4 2.% 2 (w/o forex impact) 2 Home sewing machines 9.6% 9.6% 3/215 Actual 3/216 Forecast +3.% ( +2.9% ) 3/215 Actual 3/216 Forecast.% Home sewing machines Geographical Sales 3/215 Actual 3/216 Forecast (w/o forex impact) Americas 296 39 +4.4% (+.7%) Europe 111 16-4.8% (+6.%) Asia & Others 6 74 +24.2% (+2.8%) Japan 48 41-13.7% (-13.7%) Increase sale in Europe and Americas by launching new mid-range and high-end models for existing customers Increase sales significantly in the Asia & Others region by launching new products and strengthening sales channels. Operating income is expected to increase marginally due to R&D cost and SGA increases. 215 Brother Industries, Ltd. All Rights Reserved. 22

Machinery & Solution Sales & < Forecast for FY215 (ending March 31,216) > 1,5 25 4.% 1,2 9 1,6 273 1,78 344 (w/o forex impact) Industrial sewing machines 2 15 162 15 3.% 2.% 6 3 733 734 +26.% ( +22.9% ) Machine tools +.1% ( -2.9% ) Total 1 5 16.1% 13.9% 1.% 3/215 Actual 3/216 Forecast +7.1% ( +4.1% ) 3/215 Actual 3/216 Forecast.% Industrial sewing machines Geographical Sales 3/215 Actual 3/216 Forecast (w/o forex impact) Americas 54 59 +1.1% (+5.3%) Europe 43 44 +2.3% (+13.5%) Asia & Others 169 235 +38.7% (+32.3%) Japan 7 6-13.5% (-13.5%) Machine tools Geographical Sales 3/215 Actual 3/216 Forecast Americas 29 3 Europe 23 29 Asia & Others 622 68 Japan 59 67 For Industrial sewing machines, increase sales by launching new lock stitcher model and by boosting sales of programmable electronic pattern sewing machines and garment printers For Machine tools, increase sales of strategic products by enhancing sales and services and boost sales to stable automotive-related markets in China and other Asian countries. Operating income is expected to decrease due to cost increases for enhancing sales facilities *As machine tools are mostly exported to customers directly from Japan, sales are reported in Japan segment regardless of destination of exports. Therefore, for the purpose of this material, the regional breakdown ratios of exports from Japan multiplied by total consolidated sales is shown here. 215 Brother Industries, Ltd. All Rights Reserved. 23 +6.1% +22.8% -2.3% +13.1%

Network & Contents Sales & < Forecast for FY215 (ending March 31,216) > 8 3 3.% 6 49 556 2 17 2.% 1 1.% 4 3.1%.% 2-1 -1.7% -9-1.% 3/215 Actual 3/216 Forecast +13.6% -2 3/215 Actual 3/216 Forecast -2.% Both sales and operating income are expected to increase by launching new karaoke machine models For the shop business, profitability is expected to improve due to withdrawal of unprofitable shops and thorough low-cost operation. * Regional sales breakdown for Network & Contents is not referred to here because the major part of sales are made in Japan. 215 Brother Industries, Ltd. All Rights Reserved. 24

Industrial Part Sales & < Forecast for FY215 (ending March 31,216) > 3 3 3.% 21 2 174 2 2.% 15 1 1 1.% (w/o forex impact) 3 7.5% 3/215 Actual 3/216 Forecast +15.2%( +14.2%) 1.6% 3/215 Actual 3/216 Forecast.% Industrial Part Geographical Sales 3/215 Actual 3/216 Forecast (w/o forex impact) Americas 23 28 +22.9% (+17.5%) In Japan, increase sales of highefficiency gear motors as a result of regulatory revision Europe - (-) Asia & Others 5 19 +39.5% (+298.7%) Japan 147 154 +4.8% (+4.8%) For overseas countries, increase sales in North America and Asia by launching specialized models. 215 Brother Industries, Ltd. All Rights Reserved. 25

Consolidated Results for FY214(ended March 31,215) < FY214 Q4 (3-month Results) > Non-operating Income (Loss) Current Profits Extraordinary Income (Loss) Income Taxes Net Income Three months ended Mar. 31, 215 Q4 3/215 Q4 3/214 Rate of [Actual] [Actual] 1,858 1,65 28 (w/o forex impact) 12.6% (+7.%) 117 126-8 -6.6% 6.3% 7.6% -1.3% -26-11 -15 92 115-23 -2.1% -14-22 8 19 19 59 74-15 -2.4% (Yen) Exchange USD 119.56 13.28 16.28 Rates EUR 136.1 141.47-5.37 Net sales showed double-digit growth due to strong sales of Machine tools and the positive effect of the yenʼs depreciation Despite increased sales in the M&S business, operating income decreased mainly due to selling expense increase in the P&S business 215 Brother Industries, Ltd. All Rights Reserved. 26

Main Factors for s in < FY214 Q4 (3-month Results) > 215 Brother Industries, Ltd. All Rights Reserved. 27

Printing & Solutions Sales & < FY214 Q4 (3-month Results) > 2, 2 4.% 1,5 1,129 1,238 (w/o forex impact) 1, 5 1,4 1,99 Communications & Printing equipment +9.5% ( +3.6% ) Electronic stationery +11.9% ( +4.5% ) 1 78 54 2.% 124 139 Q4 3/214 Q4 3/215 Total +9.7% ( +3.7% ) 6.9% 4.4% Q4 3/214 Q4 3/215.% Communications & Printing equipment Geographical Sales Q4 3/214 Q4 3/215 (w/o forex impact) Americas 379 446 +17.7% (+3.9%) Europe 377 376 -.4% (+1.3%) Asia & Others 143 167 +16.1% (+7.2%) Japan 15 111 +5.9% (+5.9%) Electronic stationery Geographical Sales Q4 3/214 Q4 3/215 (w/o forex impact) Americas 54 68 +25.7% (+1.2%) Europe 43 42-3.% (-1.4%) Asia & Others 15 18 +21.8% (+12.1%) Japan 12 11-9.5% (-9.5%) Sales increased year-on-year in each region by carrying out aggressive sales measures. Operating income decreased due to SGA increase. *In accordance with a change in scope of consolidation this year, some figures, which were presented in Japan in the prior year, are reclassified into Asia and Others. 215 Brother Industries, Ltd. All Rights Reserved. 28

Personal & Home Sales & < FY214 Q4 (3-month Results) > 3 3 3.% 2 2 2.% 115 13 13 1 (w/o forex impact) 1 11.5% 7 1.% Q4 3/214 Q4 3/215 Home sewing machines +12.7% ( +5.6% ) 5.7% Q4 3/214 Q4 3/215.% Home sewing machines Geographical Sales Q4 3/214 Q4 3/215 (w/o forex impact) Americas 54 7 +3.4% (+15.%) Europe 3 28-7.1% (-3.9%) Asia & Others 11 14 +23.9% (+16.3%) Japan 2 17-11.9% (-11.9%) Sales remained strong in the Americas due to the launch of new high-end models Operating income decreased due to SGA increase *In accordance with a change in scope of consolidation this year, some figures, which were presented in Japan in the prior year, are reclassified into Asia and Others. 215 Brother Industries, Ltd. All Rights Reserved. 29

Machinery & Solution Sales & < FY214 Q4 (3-month Results) > 4 6 6.% 3 273 45 73 185 2 78 1 2 17 Q4 3/214 Q4 3/215 Industrial sewing machines Geographical Sales Q4 3/214 Q4 3/215 (w/o forex impact) Americas 1 14 +33.2% (+15.6%) Europe 11 11 +.1% (+3.6%) Asia & Others 54 46-15.1% (-26.3%) Japan 2 2-5.1% (-5.1%) Machine tools 4 (w/o forex impact) Industrial sewing machines -6.3% ( -16.% ) 2 Machine tools +87.1% ( +8.1% ) Total +47.7% ( +39.6% ) Geographical Sales Q4 3/214 Q4 3/215 (w/o forex impact) Americas 5 7 +29.4% Europe 4 5 +23.1% Asia & Others 81 171 +19.9% Japan 16 17 +5.6% 19 1.3% 16.4% Q4 3/214 Q4 3/215 4.% 2.%.% For Industrial sewing machines, sales decreased year-on-year due to very sluggish demand in China, despite growing demand for capital investment in the sewing industry in Southeast Asia, Europe and the Americas. For Machine tools, sales significantly rose due to growing demand from IT-related customers and due to strengthened operations to attract automobile-related customers Operating income significantly rose mainly due to increased sales of Machine tools. *As machine tools are mostly exported to customers directly from Japan, sales are reported in ʻJapanʼ segment regardless of destination of exports. Therefore, for the purpose of this material, the regional breakdown ratios of exports from Japan multiplied by total consolidated sales is shown here. 215 Brother Industries, Ltd. All Rights Reserved. 3

Network & Contents Sales & < FY214 Q4 (3-month Results) > 2 2 2.% 134 138 1 1 1 1 1.% 7.5% 7.4% Q4 3/214 Q4 3/215 +3.1% Q4 3/214 Q4 3/215.% Sales marginally increased due to slower replacement demand for online karaoke machines, despite steady business operation in karaoke shops Sales were at the same level as the prior year * Regional sales breakdown for Network & Contents is not referred to here because the major part of sales are made in Japan. 215 Brother Industries, Ltd. All Rights Reserved. 31

Industrial Part Sales & < FY214 Q4 (3-month Results) > 1 1 2.% 5 43 45 5 1.% (w/o forex impact) 3 6.4% 1 Q4 3/214 Q4 3/215 +5.6% ( +3.9% ) 2.% Q4 3/214 Q4 3/215.% Industrial Part Geographical Sales Q4 3/214 Q4 3/215 (w/o forex impact) Sales were approximately at the same level year-on-year. Americas 5 5-1.7% (-15.3%) Europe - (-) Asia & Others 1 - (-) Operating income fell due to increased costs such as depreciation. Japan 38 39 +3.4% (+3.4%) 215 Brother Industries, Ltd. All Rights Reserved. 32

R&D expenses, Capital expenditure, Depreciation and amortization and Inventories R&D expenses Capital expenditure and Depreciation and amortization 5 25 41 425 441 6 3 Capital expenditure Depreciation and amortization 349 341 276 282 398 319 3/214 Actual 3/215 Actual 3/216 Forecast 3/214 Actual 3/215 Actual 3/216 Forecast Inventories Inventories Inventories / Cost of sales 1,5 1, 5 1,63 877 912 977 1,34 1,71 3.2 3.4 3.5 3.5 3.4 3.6 (Number of months) 1,251 1,292 1,224 6. 4. 4.2 3.5 3.7 2. Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 215 Brother Industries, Ltd. All Rights Reserved.. 33