SHOEI CO., LTD. SHOEI CO., LTD. Presentation Presentation - - PowerPoint PPT Presentation

SLIDE 1

SHOEI CO., LTD. SHOEI CO., LTD.

Presentation Presentation

November 22, 2018

SLIDE 2

Regime for the 62nd Fiscal Year Regime for the 62nd Fiscal Year

☆Sales volume increased 15,000 units year on year, mainly , y y , y in Japan and North America. Unit prices of products increased as well. As a result, revenue was up １,507 million yen. ☆Foreign exchange rates (euro) at the term-end of subsidiaries (the end of June) were almost the same as those of the 61st term, and there was almost no foreign exchange impact on consolidated income exchange impact on consolidated income. ☆Meantime, despite an increase in raw materials cost and SG&A expenses operating profit rose 272 million yen SG&A expenses, operating profit rose 272 million yen. ☆As a result, net income of 2,578 million yen was posted, an all-time high for profit this term, as well. all time high for profit this term, as well.

• 1-

SLIDE 3

The Fiscal Year Ended Sep. 30, 2018

（１） Consolidated Statements of Income

(Millions of yen)

O O Oct.16

• Sept.17

Oct.17

• Sept.18

Changes from Previous year(％)

N t S l

15 641 17 148

+9 6

N e t S a l e s

15,641 17,148

+9.6

O p e r a t i n g I n c

• m

e

3,461 3,734

+7.9

O d i O r d i n a r y I n c

• m

e

3,497 3,772

+7.9

Profit attributable t o

• w n e r s
• f

t

2,358 2,578

+9.3

p a r e n t

, ,

N e t

I n c o m e

p e r S h a r e

¥171.29 ¥187.21

+9.3

D i v i d e n d

¥85 00 ¥93 00

9 4

Notes: The net income per share is calculated using the weighted average number of shares (excluding

D i v i d e n d p e r S h a r e

¥85.00 ¥93.00

+9.4

The net income per share is calculated using the weighted average number of shares (excluding treasury stock) during the period.

• 2-

SLIDE 4

（２） Change of Sales and Net Income Indicator

4 000 18 000

Sales Net Income

(Millions of yen) (Millions of yen) 4,000 15,000 18,000 3,000 12,000 2,000 6,000 9,000 1,000 3,000

The 57th The 58th The 59th The 60th The 61st The 62nd

• 3-

SLIDE 5

（３）The trend of Exchange Rate

140.00

EUR(MUFG Bank,Month end) EUR(Average rate) EUR(for Subsidiaries) USD(MUFG B k M h d)

【YEN】

130 00 135.00

USD(MUFG Bank,Month end) USD(Average rate) USD(for Subsidiaries)

125.00 130.00 115.00 120.00 105 00 110.00 100.00 105.00

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

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SLIDE 6

＜NEOTE NEOTEＣⅡ＞

New Products during the 62nd Fiscal Year

＜NEOTE NEOTEＣⅡ＞

System helmet with sun visor supporting intercom System helmet with sun visor supporting intercom sold in unprecedented quantities thanks to the sold in unprecedented quantities thanks to the popularity of the innovative design and built popularity of the innovative design and built-

• in

in intercom functionality. intercom functionality.

【Europe】 Launching in January 2018 【North America】 Launching in March 2018 【Japan】 Launching in May 2018 Sales Vol me ( Consolidated base) Total 95 000 nits Sales Volume ( Consolidated base) Total : 95,000 units

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SLIDE 7

（４）Consolidated Balance Sheets

(Millions of Yen)

Sept.30,2017 Sept.30,2018

C a s h a n d D e p o s i t s

7,230 8,115

（ +884）

A c c o u n t R e c e i v a b l e

1,794 2,179

（ +384）

1,794 2,179

（ ）

Merchandise and Finished Goods

1,198 1,396

（ +198）

W o r k i n P r o c e s s

449 421

（

• 28）

R a w M a t e r i a l s a n d P a r t s

569 689

（ +120）

R a w M a t e r i a l s a n d P a r t s

569 689

（ +120）

O t h e r C u r r e n t A s s e t s

982 973

（

• 9）

T o t a l C u r r e n t A s s e t s

12,226 13,776

（ +1,550）

T t l F i d A t

2 776 2 979

（ +202）

T o t a l F i x e d A s s e t s

2,776 2,979

（ +202）

T

• t

a l A s s e t s

15,003 16,755

（ +1,752）

C u r r e n t L i a b i l i t i e s

2,005 2,296

（ +290） （ ）

F i x e d L i a b i l i t i e s

742 799

（ +57）

T o t a l L i a b i l i t i e s

2,747 3,096

（ +348）

S h a r e h o l d e r s ‘ E q u i t y （ C i t l S t k ）

12,704

(1 394)

14,111

(1 394) （ +1,406）

（ ） （ C a p i t a l S t o c k ） （ T r e a s u r y S t o c k ）

(1,394) (-0) (1,394) (-1)

（ ―） （

• 0）

T o t a l N e t A s s e t s

12,255 13,659

（ +1,403）

T o t a l L i a b i l i t i e s a n d

15 003 16 755

（ 1 752）

T o t a l L i a b i l i t i e s a n d T o t a l N e t A s s e t s

15,003 16,755

（ +1,752）

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（５） Financial Indicator

(Millions of yen)

0% 30.0% Ordinary income to net sales ratio ＲＯＡ ＲＯＥ

22.9% 22.4% 22.0% 16 7% 16 6% 16 2%

21.3% 20.7% 19.9%

20.0% 25.0%

16.7% 16.6% 16.2%

10 0% 15.0% 5.0% 10.0% 0.0%

The 60th The 61st The 62nd

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SLIDE 9

Regime for the 63rd Fiscal Year

☆Budgeting of helmet sales volume is 544,000 units, an increase of 22,000

Regime for the 63rd Fiscal Year

☆ g g , , , units compared to the 62nd term. We believe that this volume can be achieved on the strength of a promising new model, which we will touch

• n later
• n later.

☆On the other hand, operating profit is expected to decrease 7.9%, due to an assumed stronger yen in exchange rates and a rise in SG&A expenses. Provided there is no sharp rise in the yen that exceeds the opening budget

• r a deterioration in market conditions the budget at this point is expected
• r a deterioration in market conditions, the budget at this point is expected

to be fully achievable.

☆Foreign exchange sensitivity: ☆Foreign exchange sensitivity: 1 yen/1 dollar: consolidated net sales: 29 million yen, net income: 12 million yen 1 yen/1 euro: consolidated net sales: 54 million yen, net income: 23 million yen *These are only rough indications and actual results may differ from these

• 8-

These are only rough indications, and actual results may differ from these figures.

SLIDE 10

Forecasts for the Fiscal Year Ending Sep. 30, 2019

（１） Consolidated Statements of Income

(Millions of yen)

O O Oct.17

• Sept.18

Oct.18

• Sept.19

Changes from Previous year(％)

N t S l

17 148 18 150

+5 8

N e t S a l e s

17,148 18,150

+5.8

O p e r a t i n g I n c

• m

e

3,734 3,440

• 7.9

O d i O r d i n a r y I n c

• m

e

3,772 3,450

• 8.5

Profit attributable t o

• w n e r s
• f

t

2,578 2,390

• 7.3

p a r e n t

, ,

N e t

I n c o m e

p e r S h a r e

¥187.21 ¥173.55

• 7.3

D i v i d e n d

¥93 00 ¥86 00

7 5

D i v i d e n d p e r S h a r e

¥93.00 ¥86.00

• 7.5

Notes:

• 1. The net income per share is calculated using the weighted average number of shares (excluding

treasury stock) during the period

• 9-

treasury stock) during the period.

• 2. The assumed exchange rates for the 2019 fiscal year are USD/JPY = 110.00 and EUR/JPY = 125.00.

SLIDE 11

Total Total 17,148

(changes (changes +1,507) +1,507)

Total Total 17,148

(changes (changes +1,507) +1,507)

Total Total 15,641 Total Total 15,641 Total Total 18,150

(changes + 1,001) changes + 1,001) (544 Thousands units) (544 Thousands units)

Total Total 18,150

(changes + 1,001) changes + 1,001) (544 Thousands units) (544 Thousands units)

（２） Consolidated Sales Composition by Region

20 000 (Millions of yen)

Other Areas Other Areas (11 0%) (11 0%)

( g ( g , ) , ) (521 Thousands units) (521 Thousands units) ( g ( g , ) , ) (521 Thousands units) (521 Thousands units)

(506 Thousands units) (506 Thousands units) (506 Thousands units) (506 Thousands units)

Exchange rate US$=￥ 110.00 (+ ¥ 0.22) EUR=￥125.00 ( - ¥ 7.03)

( ) ( ) ( ) ( )

Other Areas Other Areas (10.0%) (10.0%) 1 811 1 811 (changes (changes -73) 73)

Exchange rate US$=￥ 109.78 ( - ¥1.14) EUR=￥132.03 ( + ¥9.67) Exchange rate US$=￥ 110.92 EUR 122 36

20,000 ( y )

Other Areas Other Areas (11.0%) (11.0%) 1,884 1,884 ( (changes +26) changes +26) (62 Thousands units) (62 Thousands units) 1,811 1,811 (changes (changes 73) 73) (60 Thousands units) (60 Thousands units) Other Areas Other Areas (11.9%) (11.9%) 1,858 1,858 (65 Thousands units) (65 Thousands units)

EUR=￥122.36

16,000

North America North America (16.1%) (16.1%) 2,767(changes +628) 2,767(changes +628) (90 Thousands units) (90 Thousands units) North America North America (18.0%) (18.0%) 3,272 3,272 (changes (changes +504) +504) (110 Thousands units) (110 Thousands units) North America North America (13.7%) (13.7%) 2 138 2 138

12,000

( ) ( ) Europe Europe (48.0%) 48.0%) Overseas (76.0%) 13,797(changes + 1,234) changes + 1,234) (420 Thousands units) (420 Thousands units) Overseas (76.0%) 13,797(changes + 1,234) changes + 1,234) (420 Thousands units) (420 Thousands units) 2,138 2,138 (71 Thousands units) (71 Thousands units) Overseas (74.0%) 11,557 (385 Thousands units) Overseas (74.0%) 11,557 (385 Thousands units) Overseas (73.3%) 12,562 (changes changes +984) +984) (389 Thousands units) (389 Thousands units) Overseas (73.3%) 12,562 (changes changes +984) +984) (389 Thousands units) (389 Thousands units)

8,000

Europe Europe (46.1%) (46.1%) 7,910(changes +330) 7,910(changes +330) (235 Thousands units) (235 Thousands units) Europe Europe (48.0%) 48.0%) 8,714 8,714 (changes (changes +803) +803) (250 Thousands units) (250 Thousands units) Europe Europe (48.5%) (48.5%) 7,580 7,580 (248 Thousands units) (248 Thousands units)

4,000

Japan (26.7%) 4,586 (changes changes +522) +522) (132 Thousands units) (132 Thousands units) Japan (24.0%) 4,353 (changes changes -

• 233

233) (124 Thousands units) Japan (26.0%) 4,063 (120 Thousands units)

Oct.16-Sep.17 Oct.17-Sep.18 Oct.18-Sep.19

(Forecast)

• 10-

SLIDE 12

（３）Key Themes in the 63rd Term

①Improving productivity with expansion of production capacity (facilities, increase in production capacity (facilities, increase in headcounts) and JIT (improvement, kaizen activities etc activities, etc. ②Make a thorough analysis of customer needs and launch attractive new models through the convergence of electronics and IT. An increase g in unit price is planned after that. ③B d t t ③Brand strategy ④Sales force enhancement in promising ④Sales force enhancement in promising markets

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①Expansion of production capacity From the 62nd term through the 64th term, the From the 62nd term through the 64th term, the existing policy of enhancing production capacity existing policy of enhancing production capacity g p y g p p y g p y g p p y from 500,000 to 600,000 units per year is firmly from 500,000 to 600,000 units per year is firmly

• maintained. In order to achieve it, we will work
• maintained. In order to achieve it, we will work

, diligently on capital investment (attachment,) diligently on capital investment (attachment,) increasing headcounts (attachment,) developing increasing headcounts (attachment,) developing g ( ,) p g g ( ,) p g promising new models (attachment,) improving promising new models (attachment,) improving productivity through JIT improvement activities productivity through JIT improvement activities p y g p p y g p (attachment,) and enhancing our sales force (attachment,) and enhancing our sales force (attachment.) Our production capacity in the 63rd (attachment.) Our production capacity in the 63rd ( ) p p y ( ) p p y term is planned to be 548,000 units, including 10 term is planned to be 548,000 units, including 10 days’ holiday work. days’ holiday work. y y y y

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SLIDE 14

Capital Expenditures and Depreciation

1,500 (Millions of Yen)

・Investment for Molds of New Products ・Construction of Large Wind Tunnel Experiment Facility

・2nd Enlargement of Painting Facility &

1,073 1,099 1,193

1,200

Equipment in Both Factories ・Investment for Molds of New Products

961 923 848 952 849

900

・Investment for Molds of New Products ・Large Wind Tunnel Experiment Facility

683 525 495 730 707 543 501 509 614 605

600

375 332 348 365 450 501 397

300

O 07 O 08 O 09 O 10 S 11 O 12 O 13 O 14 O 15 O 16 O 17 O 18

Large scale investment to equipment and facility for growth is completed within current term Large scale investment to equipment and facility for growth is completed within current term

Oct.07- Sept.08 Oct.08- Sept.09 Oct.09- Sept.10 Oct.10- Sept.11 Sept.11- Oct.12 Oct.12- Sept.13 Oct.13- Sept.14 Oct.14- Sept.15 Oct.15- Sept.16 Oct.16- Sept.17 Oct.17- Sept.18 Oct.18- Sept.19

Investment to Equipment & Facility Depreciation

Forecast

• 13-

SLIDE 15

CAPEX for the 63rd Fiscal Year Total 1,193,202 Thousands of Yen

Main capital investments 1 Mold 355 000 Thousands of Yen

• 1. Mold 355,000 Thousands of Yen
• 2. Cap bodies molding presses

166,800 Thousands of Yen 3 Robot grinder/expanded grinding

• 3. Robot grinder/expanded grinding

workshop 89 850 Th d f Y 89,850 Thousands of Yen

• 4. Open preform machines
• 4. Open preform machines

62,300 Thousands of Yen

• 14-

SLIDE 16

Change of Employee

Regular employee Contract worker (People)

500 600

g p y (People)

400 500 300 100 200

Sep.2006 Sep.2007 Sep.2008 Sep.2009 Sep.2010 Sep.2011 Sep.2012 Sep.2013 Sep.2014 Sep.2015 Sep.2016 Sep.2017 Sep.2018 Sep.2019

Forecast

• 15-

SLIDE 17

JIT (Just in time) improvement activities JIT (Just in time) improvement activities

Classroom lecture

Onsite guidance

• 16-

SLIDE 18

Increase in unit prices of products Higher added value and production streamlining are g p g a pair of wheels for sustaining “Made in Japan.”

Headquarters side

Strength of SHOEI

Plants side

Strength of SHOEI

Product Planning Department Product planning Research (including new technologies) Development Department Transforming ideas for mass production Plants Productivity improvement Product Design Section New functionality, innovative design Procurement Department Cost management Quality Control Department

• 17-

Graphic Design Section Innovative design Quality Control Department Response to standards Maintenance of high quality

SLIDE 19

②Increase in unit price by developing attractive new models

Introduction of New Products to the Market

＜ EX EX-

• ZERO

ZERO ＞

Introduction of New Products to the Market Vintage style full Vintage style full-

• face model

face model

【Japan】 Launching in November 2018 Suggested Retail Price : YEN 38,000 ～ YEN 46,000 (E l di S l T ) (Excluding Sales Tax)

• 18-

SLIDE 20

＜ GT GT-

• Air

Air Ⅱ＞ ＞

F ll F H l t i d ith S Vi F ll F H l t i d ith S Vi

【Europe】 L hi i M h 2019 (*)

Full Face Helmet equipped with Sun Visor Full Face Helmet equipped with Sun Visor

Launching in March 2019 (*) (Initial Shipment : January 2019 (*) ) Suggested Retail Price Germany, France : EUR499.00 y, ～EUR629.00(Including VAT (Tax))

GT-Air : EUR479.00 ～ EUR579.00(Including VAT(Tax))

【North America】 【North America】 Launching in April 2019 (*) (Initial Shipment : January 2019 (*) ) Suggested Retail Price : US$599.00 ～US$699.00 (Excluding Sales Tax)

GT-Air : US$549.99 ～ US$670.99(Excluding Sales Tax)

【Japan】 【Japan】 Launching in Spring 2019 (*) (Initial Shipment : Spring 2019 (*) ) Suggested Retail Price : To be announced

GT Ai YEN45 000 YEN56 000(E l di S l T )

• 19-

GT-Air : YEN45,000 ～ YEN56,000(Excluding Sales Tax)

* Launch schedules are subject to change.

SLIDE 21

The trend of average unit price for motorcycles helmets

（units） （Yen）

Sales unit price

25,000 30,000 500 600 Sales quantity Unit price

（units） （Yen）

20,000 , 400 15,000 300 5 000 10,000 100 200 5,000 100

Sep.2005 Sep.2006 Sep.2007 Sep.2008 Sep.2009 Sep.2010 Sep.2011 Sep.2012 Sep.2013 Sep.2014 Sep.2015 Sep.2016 Sep.2017 Sep.2018

• 20-

p p p p p p p p p p p p p p

SLIDE 22

③ Brand strategy ③ Brand strategy

With an awareness that significant market g expansion in developed countries is unlikely in future we will aim to enhance our brand in future, we will aim to enhance our brand strength and retain consumers and dominant retailers by promoting PFS utilizing the retailers by promoting PFS, utilizing the internet, and pursuing effective advertising.

• 21-

SLIDE 23

Marc Marquez

• 22-

SLIDE 24

Retain consumers by ＰＦＳ

• 23-

SLIDE 25

④Sales force enhancement in promising markets markets Sales force enhancement in promising Sales force enhancement in promising markets Development of products meeting the new helmet safety standards in the Chinese helmet safety standards in the Chinese market. Preferential allocation of management t fi ld t d t i resources to fields expected to grow in Asian markets other than China, such as , Taiwan, Thailand, and Malaysia.

• 24-

SLIDE 26

Asian Market Trends

G / i ( S$)

China Indonesia 1,386.4 264.0

Population (1 million people)

China Indonesia Philippines 8,643 3,876 2,976

GDP/capita (US$)

Philippines Thailand Korea Malaysia 104.9 69.0 51.5 31.6 23 6 Philippines Thailand Korea Malaysia Taiwan 2,976 6,591 29,891 9,813 24,577 200 400 600 800 1,000 1,200 1,400 Taiwan Hong Kong Singapore 23.6 7.4 5.6 10,000 20,000 30,000 40,000 50,000 60,000 Hong Kong Singapore 46,109 57,713 China Indonesia 15,087,000 5,886,103

Sales units of motorcycles

China Indonesia 12,597 927

Sales units of large sized motorcycles

China Indonesia

The Company's sales volume for the 62nd term

Philippines Thailand Korea Malaysia 1,319,075 1,810,771 81,919 15,436 Philippines Thailand Korea Malaysia 2,538 51,500 1,354 Philippines Thailand Korea Malaysia 5,000,000 10,000,000 15,000,000 20,000,000 Taiwan Hong Kong Singapore 909,863 10,000 20,000 30,000 40,000 50,000 60,000 Taiwan Hong Kong Singapore 3,342 5,000 10,000 15,000 20,000 Taiwan Hong Kong Singapore

• 25-

SLIDE 27

（13）Conclusion Summary

Maintaining Maintaining Basic Policy

Basic Policy for

for Medium and Long Term Medium and Long Term Stable Growth and Stable Profit Stable Growth and Stable Profit

• 1. Maintaining Healthy Financial Positions (Protect Own Company by Ourselves)
• 2. Maintain “Made in Japan,” focusing on higher value-added products and production

a ta ade Japa ,

• cus

g o g e a ue added p oducts a d p oduct o rationalization.

• 3. Continuation of Investment

4 Targeting # 1 in All Premium Helmet Markets in the World 4. Targeting # 1 in All Premium Helmet Markets in the World

• 5. It takes 10 years to build a castle, but just one day for it to fall. We will not assign an

irrational quota that could cause injustice. Move forward steadily in a simple, honest manner, but without sidestepping the challenges in front of us.

• 6. Fair distribution of retained earnings
• 50% dividend of profit after tax
• Distribution to employees
• Distribution to company (proper retained earnings kept)
• 26-

SLIDE 28

Thank you very much for your attention and please take good care of our p g SHOEI’s helmets further on.