FY2014 2 nd Quarter and1 st Half Financial Results Showa - - PowerPoint PPT Presentation
FY2014 2 nd Quarter and1 st Half Financial Results Showa Corporation October 29, 2013 http://www.showa1.com Showa Corporation Financial Results Presentation 1) Fiscal 2014 2 nd Quarter and 1 st Half, ended September 30, 2013 (Consolidated)
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Showa Corporation
October 29, 2013
FY2014 2nd Quarter and1st Half Financial Results
Showa Corporation Financial Results Presentation 1) Fiscal 2014 2nd Quarter and 1st Half, ended September 30, 2013 (Consolidated) 2) Fiscal 2014 Financial Forecasts (Consolidated) Generalzation
by Yoichi Hojo, Representative Director and President
Summary Presentation
by Tetsuro Aoyama, Managing Officer and Director COO, Business Management and Support Operations
FY2014 2nd Quarter and 1st Half Consolidated Financial Results Generalization
Underlying strength is seen although recovery with weak business condition continues.
・JPN： Recovering gently ・N America： Gentle recovery tendency continuing ・ASIA：CHINA Expansion tempo stablizing ASEAN Gently improving ・EUR： Stop declaining
2 2
Production and sale of the 1st Half exceed the previous year.
※source：Cabinet Office, Government of Japan, and others
１．Motorcycles and scooters
JPN： Yr-on-Yr, Production slightly down and sales increased ・N America： In restorative tendency ・S America： In Brazil, production and sale decrease. ・Asia： Demand recovers, production and sales increased in Indonesia
【Economic conditions】 【Automotive markets】
2R SA 4R SA STRG
ＥＰＳ ＨＰＳ
10,000 pcs
10,000 units 1,101 165 163 1,179 1,676 1,677 1,683 1,773 1,087 1,134 150
Production quantities of main products Business Environment Conditions
165 CVT PUMP 105 1st Half Actuals 105 2nd Half Actuals 106 1st Half Actuals 106 2nd Half Forecast
※Excluding affliated companies counted under equity method
Asia SoAm NoAm CHN EUR JPN
2．Passenger cars ※Excluding trucks
JPN： Y-on-Y, Production and sales decreased ・N America：Promising condition, Y-on-Y increase ・S America： Promising condition, Y-on-Y increase ・Asia： Promising condition, Y-on-Y increase
※source：JAPIA、Fourin, and others
FY2014 1st Half Financial Results (Consolidated)
105 1st Half Actuals 105 2nd Half Actuals 106 1st Half Actuals 106 2nd Half Forecast 105 1st Half Actuals 105 2nd Half Actuals 106 1st Half Actuals 106 2nd Half Forecast
2 2
（Numbers shown are roundoff at hundred million yen）
(Consolidated) 2nd Quarter Financial Results (Three Months) FY2013 2Q FY2014 2Q Change % of Change
Sales Revenue
５９１．９ ７１０．９ １１９．０ ２０．１％
Operating Income
３４．９ ５８．１ ２３．２ ６６．５％
Ordinary Income
３２．９ ５６．２ ２３．３ ７０．８％
Net Income
１５．７ △１４．２ △２９．９ ー USD ８０ ９９ １９ ２３．８％ RMB １２．６ １６．１ ３．５ ２７．８％
FX Rates (JPY)
Net Income per share (JPY) ２０．６４ △１８．６７ △３９．３１ ー
JPY （hundred million）
FY2014 2nd Quarter Financial Results (Consolidated)
Summary of FY2014 2Q Financial Results (three months)
Summary of Ordinary income → Net Income △70.4 Restructuring Costs△36, Product Assurance △26.7, Fixed Assets Sell and Scarp & Impairment Loss △0.6, Tax Costs △3.8, Minority Shareholders Interests △３．３
2 2
（Numbers shown are roundoff at hundred million yen）
(Consolidated) 1st Half Financial Results (Six Months) FY2013 1st Half FY2014 1st Half Change % of Change
Sales Revenue
１，２０９．５ １，３８１．７ １７２．２ １４．２％
Operating Income
７３．５ １０８．２ ３４．７ ４７．１％
Ordinary Income
７４．１ １１１．０ ３６．９ ４９．９％
Net Income
４９．１ １１．７ △３７．４ △７６．２％ USD ８０ ９６ １６ ２０．０％ RMB １２．７ １５．５ ２．８ ２２．０％
FX Rates (JPY)
Net Income per share (JPY) ６４．６３ １５．３６ △４９．２７ △７６．２％
JPY （hundred million）
FY2014 1st Half Financial Results (Consolidated)
Summary of FY2014 1st Half Financial Results (six months)
Summary of Ordinary income → Net Income △70.4 Restructuring Costs△36, Product Assurance △26.7, Fixed Assets Sell and Scarp & Impairment Loss △0.6, Tax Costs △3.8, Minority Shareholders Interests △３．３
34.9 58.1
＋13.8 ＋4.0 ＋1.0 ＋58.1 △0.9 △3.7 △3.8
5.9% 8.2%
2 2
＋23.2
FY2014 2Q Changes in Operating Income by factors
JPY （hundred million）
Revenue, model mix Cost reduction, etc. Depreciation & Amortization Material costs change Increase In Labor costs Increase In R&D F/X effects
FY2013 2Q (Three months) FY2014 2Q (Three months)
FY2014 2nd Quarter Financial Results (Consolidated)
73.5 108.2
＋23.3 ＋4.0 ＋1.0 ＋58.1 △1.2 △7.7 △8.3
6.1% 7.8%
2 2
＋34.7
FY2014 1st Half Changes in Operating Income by factors
JPY （hundred million）
Revenue, model mix Cost reduction, etc. Depreciation & Amortization Material costs change Increase In Labor costs Increase In R&D F/X effects
FY2013 1st Half (Six months) FY2014 1st Half (Six months)
FY2014 1st Half Financial Results (Consolidated)
2 2
(Consolidated)
Full year (twelve months)
FY2013 Full year FY2014 Full year
Change Change (%)
Sales Revenue ２，３２９．６ ２，７４０．０ ４１０．４ １７．６％ Operating Income １２７．６ ２０５．０ ７７．４ ６０．７％ Ordinary Income １３９．２ ２１０．０ ７０．８ ５０．９％ Net Income ７９．８ ８０．０ ０．２ ０．２％
USD
８０ ９６ １６ ２０．０％
CNY
１２．７ １５．５ ２．９ ２２．８％
F/X Rates (JPY)
Net Income per share (JPY)
１０５．１０ １０５．３１
０．２１
０．２％
Dividend per share (JPY) Mid Term End of FY Fiscal Year FY2014 １４．０ (Forecast) １４．０ (Forecast) ２８．０ (Forecast) FY2013 １２．０ １４．０ ２６．０ Change +２．０ — +２．０
FY2014 Financial Results Forecast (Consolidated)
Summary of FY2014 Financial Forecasts
JPY （hundred million）
（Numbers shown are roundoff at hundred million yen）
FY2014 2nd Quarter and 1st Half Consolidated Financial Results Summary Presentation
1,209.5 1,381.7
＋91.9 ＋74.9 ＋73.0 △3.6 △64.0
1H, FY13 1H, FY14 Changes
Shocks absorbers
384.2 473.4 +89.2
ME Components
11.4 14.1 +2.7
Total
395.6 487.5 +91.9
Shocks absorbers
334.8 410.9 +76.1
Drivetrain
152.4 151.2 △1.2
Total
487.2 562.1 +74.9 449.4 522.4 +73.0 29.4 25.8 △3.6 1,361.6 1,597.8 +236.2 66.5 60.6 △5.9 △ 218.6 △ 276.7 △58.1 1,209.5 1,381.7 +172.2 — 155.8 +155.8
Inclusive （F/X effects） Motorcycle and Hydrualic Comp. Automotive Components Steering Components Gas Spring Segement Total Total (Consolidated) Others Consolidation adjust.
Others, Consolidation adjust Motorcycle and Hydraulic Components Automotive Components Steering Components Gas Springs
＋172.2
FY2013 1st Half (Six months) FY2014 1st Half (Six months) 2 2 FY2014 1st Half Sales revenues by Segment
JPY （hundred million）
FY2014 1st Half (6 months) Financial Results (Consolidated)
2 2
（Numbers shown are roundoff at hundred million yen）
(Consolidated) 2nd Quarter Financial Results (Three Months) FY2013 2Q FY2014 2Q Change % of Change
Sales Revenue
５９１．９ ７１０．９ １１９．０ ２０．１％
Operating Income
３４．９ ５８．１ ２３．２ ６６．５％
Ordinary Income
３２．９ ５６．２ ２３．３ ７０．８％
Net Income
１５．７ △１４．２ △２９．９ ー USD ８０ ９９ １９ ２３．８％ RMB １２．６ １６．１ ３．５ ２７．８％
FX Rates (JPY)
Net Income per share (JPY) ２０．６４ △１８．６７ △３９．３１ ー
JPY （hundred million）
FY2014 2nd Quarter Financial Results (Consolidated)
Summary of FY2014 2Q Financial Results (three months)
Summary of Ordinary income → Net Income △70.4 Restructuring Costs△36, Product Assurance △26.7, Fixed Assets Sell and Scarp & Impairment Loss △0.6, Tax Costs △3.8, Minority Shareholders Interests △３．３
2 2
（Numbers shown are roundoff at hundred million yen）
(Consolidated) 1st Half Financial Results (Three Months) FY2013 1st Half FY2014 1st Half Change % of Change
Sales Revenue
１，２０９．５ １，３８１．７ １７２．２ １４．２％
Operating Income
７３．５ １０８．２ ３４．７ ４７．１％
Ordinary Income
７４．１ １１１．０ ３６．９ ４９．９％
Net Income
４９．１ １１．７ △３７．４ △７６．２％ USD ８０ ９６ １６ ２０．０％ RMB １２．７ １５．５ ２．８ ２２．０％
FX Rates (JPY)
Net Income per share (JPY) ６４．６３ １５．３６ △４９．２７ △７６．２％
JPY （hundred million）
FY2014 First Half Financial Results (Consolidated)
Summary of FY2014 First Half Financial Results (six months)
Summary of Ordinary income → Net Income △70.4 Restructuring Costs△36, Product Assurance △26.7, Fixed Assets Sell and Scarp & Impairment Loss △0.6, Tax Costs △3.8, Minority Shareholders Interests △３．３
21.1 17.3 17.6 15.4 22.0 24.9 38.3 46.8
10.2% 9.2% 9.4% 8.1% 9.3% 9.9% 9.7% 9.6%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 5 10 15 20 25 30 35 40 45 50
Operating Income Operating Income Ratio
2 2
(+44.0％)
【Increase factors】 ・Revenue increase, model mix changes ・Material cost reduction effect ・F/X effects, etc.
JPY （hundred million）
FY2014 2nd Quarter Financial Results (Consolidated)
FY2013 FY2014 1Q 2Q 3Q 4Q 1Q 2Q
Net Sales 207.0 188.6 186.8 190.9 235.8 251.7 (+23.2％)
FY2012 FY2014 1st Half 1st Half
395.6 487.5
1Q 2Q 3Q 4Q 1Q 2Q FY2013 FY2014 1st Half 1st Half FY2013 FY2014 (+22.1％)
Motorcycle and Hydraulic Components Segment
JPY （hundred million）
9.0 9.4 10.1 4.9 11.2 14.4 18.4 25.6
3.7% 3.8% 4.2% 2.1% 4.2% 4.9% 3.8% 4.6%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 5 10 15 20 25 30 35 40 45 50
Operating Income Operating Income Ratio
2 2
1Q FY2014
(+53.8%)
【Increase factors】 ・Sales revenue, model mix ・Material costs reduction effect ・F/X effects, etc.
2 2 Automotive Components Segment
JPY （hundred million） JPY （hundred million）
FY2014 2nd Quarter Financial Results (Consolidated)
(+15.4％) FY2013 FY2014 1Q 2Q 3Q 4Q 1Q 2Q Nest Sales 243.4 243.9 238.8 234.3 268.6 293.5 FY2013 FY2014 1st Half 1st Half 487.2 562.1 (+20.4％) (+39.0％) 1Q 2Q 3Q 4Q 1Q 2Q FY2013 FY2014 1st Half 1st Half FY2013 FY2014
1.9 7.6 2.2 5.5 11.8 15.4 9.5 27.3
0.8% 3.4% 1.0% 2.6% 4.5% 5.9% 2.1% 5.2%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 5 10 15 20 25 30 35 40 45 50
Operating Income Operating Income Ratio
(+102.4%)
【Increase factors】 ・Sales revenue, model mix ・Material costs reduction effect ・F/X effect, etc.
2 2 2 2 Steering Components Segment
JPY （hundred million） JPY （hundred million）
FY2014 2nd Quarter Financial Results (Consolidated)
1Q 2Q 3Q 4Q 1Q 2Q FY2013 FY2014 1st Half 1st Half FY2013 FY2014 (+16.2％) FY2013 FY2014 1Q 2Q 3Q 4Q 1Q 2Q
Net Sales 223.9 225.6 208.5 214.0 260.7 261.7
FY2013 FY2014 1st Half 1st Half
449.4 522.4 ( +186.6％)
FY2013 FY2014 1Q 2Q 3Q 4Q 1Q 2Q
Net Sales 46.9 49.0 38.4 45.9 40.6 45.9
2.1 3.5 2.3 2.4 1.6 2.2 5.5 3.8
4.4% 7.1% 5.9% 5.3% 4.0% 4.7% 5.8% 4.3%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 5 10 15 20 25 30 35 40 45 50
Operating Income Operating Income Ratio
2 2
(△38.2％)
【Decrease factors】 ・Sales revenue ・model mix, etc.
Gas Springs Segment, Others
JPY （hundred million） JPY （hundred million）
1Q 2Q 3Q 4Q 1Q 2Q FY2013 FY2014 1st Half 1st Half FY2013 FY2014 (△6.3％) (△9.9％) FY2013 FY2014 1st Half 1st Half
95.9 86.4 (△32.2％)
FY2014 2nd Quarter Financial Results (Consolidated)
23.1 54.0
＋12.3 ＋24.1 ＋7.9 ＋0.1 △13.5
Others, Consolidation adjust Motorcycle and Hydraulic Components Automotive Components Steering Components Gas Springs
＋14.6
2 2 2 2 FY2014 1st Half Capital Investments by Segment FY2013 1st Half (Six months) FY2014 1st Half (Six months)
JPY （hundred million）
FY2014 1st Half Financial Results (Consolidated)
1H, FY12 1H, FY13 Changes
10.2 22.5 +12.3 7.7 31.8 +24.1 6.9 14.8 +7.9 0.2 0.3 +0.1 △ 1.9 △ 15.4 △13.5 23.1 54.0 +30.9 42.0 45.0 +3.0
Depreciation and Amortization Steering Components Gas Springs Consolidation total Others, Consolidation adjust Motorcycle and Hydraulic Comp Automotive Comp.
206.9 234.9 ＋124.9 ＋16.0 △41.2 △71.7
Balance of cash and cash equivalents at the beginning of the FY2014 Net cash provided by
activities Effect of exchange rate change
cash equivalents Free cash flow ＋83.7
F/X +5.5 Newl consolidated +10.5
28.0
2 2 2 2 FY2014 1st Half Cash Flow
JPY （hundred million）
FY2014 1st Half Financial Results (Consolidated)
Balance of cash and cash equivalents at the end of 2Q, FY2014 Net cash provided by investing activities Net cash provided by financing activities
FY2014 Financial Forecasts (Consolidated)
2 2
(Consolidated)
Full year (twelve months)
FY2013 1st Half FY2014 1st Half
Change Change (%)
Sales Revenue ２，３２９．６ ２，７４０．０ ４１０．４ １７．６％ Operating Income １２７．６ ２０５．０ ７７．４ ６０．７％ Ordinary Income １３９．２ ２１０．０ ７０．８ ５０．９％ Net Income ７９．８ ８０．０ ０．２ ０．２％
USD
８０ ９６ １６ ２０．０％
CNY
１２．７ １５．６ ２．９ ２２．８％
F/X Rates (JPY)
Net Income per share (JPY)
１０５．１０ １０５．３１ △０．２１ ０．２％
Dividend per share (JPY) Mid Term End of FY Fiscal Year FY2014 １４．０ (Forecast) １４．０ (Forecast) ２８．０ (Forecast) FY2013 １２．０ １４．０ ２６．０ Change +２．０ — +２．０
FY2014 Financial Results Forecast (Consolidated)
Summary of FY2014 Financial Forecasts
JPY （hundred million）
（Numbers shown are roundoff at hundred million yen）
2,329.6 2,740.0
＋177.4 ＋177.5 ＋174.3 △1.0 △117.8
FY2013 FY2014 Change Shock absorbers
746.6 920.7 +174.1
ME Components
26.7 30.0 +3.3
Total
773.3 950.7 +177.4
Shock absorbers
664.9 829.2 +164.3
Drive train
295.5 308.7 +13.2
Total
960.4 1,137.9 +177.5 872.0 1,046.3 +174.3 54.5 53.5 △1.0 2,660.2 3,188.4 +528.2 125.6 125.0 △0.6 △ 456.2 △ 573.4 △117.2 2,329.6 2,740.0 +410.4 — 306.7 +306.7 Others Inclusive (F/X effect)
Motorcycle and Hydraulic Comp. Automotive Components Steering Components Gas springs
Sement total Total (Consolidated) Consolidation adjustments
＋410.4
FY2014 (Twelve months) FY2013 (Twelve months)
JPY （hundred million）
FY2014 Sales revenues by Segment
Others, Consolidation adjust Motorcycle and Hydraulic Components Automotive Components Steering Components Gas Springs
FY2014 Financial Results Forecast (Consolidated)
127.6 205.0
＋55.1 ＋20.6 ＋2.3 ＋31.3 △2.3 △14.9 △14.7
5.5% 7.5%
＋77.4
2 2 FY2014 (twelve months) FY2013 (twelve months) FY2013 Changes in Operating Income by factors (Forecast)
Revenue, model mix Cost reduction, etc. Depreciation & Amortization Material costs change Increase In Labor costs Increase In R&D F/X effects JPY （hundred million）
FY2014 Financial Results Forecast (Consolidated)
70.9 156.0
＋26.2 ＋35.0 ＋33.7 0.0 △9.8
＋85.1
2 2
FY13 FY14 Change
30.7 56.9 +26.2 25.8 60.8 +35.0 18.0 51.7 +33.7 0.4 0.4 ±0.0 △ 4.0 △ 13.8 △9.8 70.9 156.0 +85.1 82.1 90.3 +8.2
Depreciation & Amortization Steering Components Gas springs Total (Consolidated) Others, Consolidation adjust Motorcycle and Hydraulic Comp Automotive Components
JPY （hundred million）
FY2014 Capital Investments by Segment (Forecast) FY2013 (Twelve months) FY2014 (Twelve months)
Others, Consolidation adjust Motorcycle and Hydraulic Components Automotive Components Steering Components Gas Springs
FY2014 Financial Results Forecast (Consolidated)
http://www.showa1.com
Showa Corporation
October 29, 2013
FY2014 2nd Quarter and1st Half Financial Results