Financial Results for the Fiscal Year Ended March 2016 (Apr Mar. 2016) May 2016

Transcription

1 Financial Results for the Fiscal Year Ended March 2016 (Apr Mar. 2016) May 2016

2 ABBREVIATION LISTS 2 NISH: Nisshinbo Holdings Inc. The followings are consolidated subsidiaries of NISH. JRC: Japan Radio Co., Ltd. NJR: New Japan Radio Co., Ltd. NJRC: Nagano Japan Radio Co., Ltd. UJRC: Ueda Japan Radio Co., Ltd. NISB: Nisshinbo Brake Inc. NISM: Nisshinbo Mechatronics Inc. NISC: Nisshinbo Chemical Inc. NIST: Nisshinbo Textile Inc. NISP: Nisshinbo Paper Products Inc.

3 3 Management Policy

4 4 Management Policy Philosophy Mission Value Domain Strategy Corporate Philosophy Public Entity, Consistent Integrity, Innovation Business Conduct Guidelines Providing solutions to sustainable society as an environmental and energy company group Environment, Safety/Security, Disaster prevention, Health, Comfort, Sustainability, Convenience/Smart Strategic Business Domains 1Wireless Communications and Electronics 2Automotive Parts and Devices 3Lifestyle and Materials 4New Energy and Smart Society 1M&A 2Expansion of the existing domains 3R&D

5 Management Policy 5 CSR Corporate governance Compliance Safety and Quality Communication Diversified human Resources Synergy of Quality Enhancement and Performance Improvement based on Corporate philosophy and Business Conduct Guidelines Corporate Philosophy Business Conduct Guidelines Performance Improvement Focus on Shareholder value and return Emphasis on ROE (+ROA) Technical strength and Development capabilities Allocation of management resources M&A

6 Mid-to-long term management strategies Strategic Business Domains 1 6 Disaster prevention system (JRC) Semi conductor device (NJR)

7 Mid-to-long term management strategies Strategic Business Domains 2 7 Plastic moldings for automobiles (Nanbu Plastics) Precision parts for automobiles (NISM) Friction materials for automobiles (NISB TMD Friction)

8 Mid-to-long term management strategies Strategic Business Domains 3 8 Dress Shirts (Tokyo Shirts) Household Paper Products (NISP) Insulation Products for Housing (NISC)

9 Mid-to-long term management strategies Strategic Business Domains 4 9 J-Marine GIS (JRC) Fuel Cell for Emergency power supply J-Marine Routing (JRC)

10 10 Mid-to-long term management strategies Expansion of the existing domains Demonstration of R&D Utilization of M&A

11 Mid-to-long term management strategies M&A history Dec. NISH Consolidated JRC and NJRC as subsidiaries NISH sold Aloka's shares 2011 Nov. NISH acquired 100% ownership of TMD Friction Group 2013 Dec. JRC consolidated Alphatron Marine as a subsidiary Feb. NISH transferred business of CHOYA 2015 May. NISH acquired 100% ownership of Tokyo Shirts Oct. NISH acquired 100% ownership of Nanbu Plastics 2016 Mar. JRC acquired 100% ownership of NJRC and UJRC

12 Mid-to-long term management strategies Contribution of M&A 12 Net Sales Tokyo Shirts Consolidation TMD Friction Group consolidation Alphatron Marine Consolidation (JRC) Nanbu Plastics consolidation 500 JRC and NJRC Consolidation Others 400 Precision Instruments (bil. yen) Brakes Electronics e. (FY)

13 Mid-to-long term management strategies 13

14 Mid-to-long term management strategies Friction Materials Copper-free 14 From California Department of Toxic Substances Control s web site

15 Mid-to-long term management strategies Friction Materials Copper-free 15

16 Mid-to-long term management strategies Fuel Cell 16 Fuel Cell Bipolar Plates (NISC) Fuel Cell for Housing Platinum Alternative Catalyst (NISH)

17 Mid-to-long term management strategies Fuel Cell Alliance with Ballard Power Systems, Canada 17 Fuel Cell (Ballard) A bus with fuel cell made by Ballard

18 Mid-to-long term management strategies Wireless Communication Technology 18 Intersection accident prevention system Car Navigation System GPS receiver Light beacon transceiver Vehicle-to-Vehicle, Road-to-Vehicle communication 700MHz communication equipment Traffic Information VICS Beacon transceiver Highway Information Vehicle device for ITS spot Motorcycle ETC ETC device for motorcycle Perimeter Monitoring System Comfort driving Secure driving Quasi-millimeter radar

19 Mid-to-long term management strategies Electronic Components Manufacturing Technology 19 Source : MarkLines Co., Ltd.

20 Mid-to-long term management strategies Advanced driving Assistant System (ADAS) 20 One of the most rapidly growing automotive categories Functions such as automatic emergency brake, cruise control, lane keeping assist system, and parking assist system Equipped with sensors such as radar, camera, and ultrasound Multi-mode radar Stereo multi-purpose camera Mid-to-long range radar Short range radar Ultrasound sensor Ex.)ADAS sensor equipped with Mercedes-Benz C-class All car makers, whose ADAS systems and sensors vary in types and quantities depend on car models, tend to enhance the content and level of driving assist system grasping surroundings at 360 degrees

21 Mid-to-long term management strategies To realize Super-Smart Society (Society 5.0) 21 Smart food chain system Intelligent traffic system Energy value chain Society 5.0 Service platform New manufacturing system Region-inclusive care system Smart manufacturing system Standardization of interface & data format Improvement of security Utilization of standard data Infrastructures maintenance and renewal Integral material development system Reinforcement of ICT development Global environment information platform Institutional reform for new services Utilization of existing positioning & certification system Hospitality system Human resource development Antinaturaldisaster society New business & service Source : Cabinet Office

22 Mid-to-long term management strategies Mid-to-long term performance target 22 FY ending Mar FY ending Mar Net Sales 600 billion yen ROE9% Net Sales 1 trillion yen ROE12%

23 1,400 1, Mid-to-long term management strategies Mid-to-long term performance target Net 1,200 Sales (bil. yen) 0-0.6% % ( ) Plan % 5.1% 326 (256) ROE Net Sales 379 (268) 3.2% 4.0% 451 (285) Challenge2012 FY2010 -FY (480) 5.5% 4.4% (510) (550) NEXT2015 FY2013 -FY % CAGR 6.6% Utilization of M&A 200 billion yen Expansion of the existing domains & Demonstration of R&D 200 billion yen 12.0% 1, ROE 15% 10% 5% 0% -5% -10% -15% -20%

24 Summary for FY ended Mar. 2016(yr/yr) 24 Increase in sales *Increase : Textiles acquiring Tokyo Shirts *Decrease : Electronics Decrease in profit *Increase : Brakes and Textiles *Decrease : Electronics and Real Estate Results (mil. yen) Mar change Net Sales 523, , % Income before goodwill amortization Mar ,068 19, % Income 13,744 12, % Ordinary Income 20,650 17, % Net Income 13,693 10, %

25 FY ended Mar Net Sales (yr/yr) 25

26 FY ended Mar Profit (yr/yr) 26

27 FY ended Mar Ordinary Income, Net Income(yr/yr) 27

28 28 Overview on major segments

29 Electronics(yr/yr) 29 Decreased in sales JRC:Sales decreased due to lower sales of water and river management systems and intelligent transport systems and postponed delivery date NJR:Sales increased due to firm sales of electronic devices and microwave components Decreased in profit JRC:Profit decreased due to lower sales NJR:Profit increased due to higher sales

30 Brakes(yr/yr) 30 Sales increased, profit ameliorated Japan: Decreased in sales and profit Overseas: Increased in sales and profit

31 FY ended Mar Net Sales (vs forecast) 31

32 FY ended Mar Profit (vs forecast) 32

33 33 Forecast on FY ending Mar. 2017

34 FORECAST ON FY ENDING MAR (mil. yen) Mar Mar. 2017e. Change Change(%) Net Sales 533, ,000 36, % Income 12,617 16,000 3, % Ordinary Income 17,034 21,000 3, % Net Income 10,775 10, % Exchange rate JPY/USD (Annual average) JPY/EUR Net Sales Income Ordinary Income Apr.-Sep Apr.-Sep. 2016e. (mil. yen) Change Change(%) 249, , % 2,105 1,000-1, % 5,462 3,000-2, % Net Income 2,510 2, % Foreign Exchange Sensitivity : Impact on operating profit when yen gets stronger by 1 yen against USD 95 million yen negative against EUR 65 million yen positive

35 Forecast on FY ending Mar

36 Forecast on FY ending Mar

37 37 TOPICS

38 38 TOPICS(1) JRC group s reorganization JRC made NJRC and UJRC a wholly owned subsidiary in March 2016, targeting further growth through consolidated management and strengthened governance.

39 39 TOPICS(2) Corporate Governance Accomplishing sustained growth and boosting longterm corporate value under the fair, transparent, prompt and drastic decision-making complying with corporate governance policy. Establishing the optional nominating committee and compensation committee, aiming for improving management transparency. Conducting overseas IR roadshow, CEO have been presenting to investors in Europe the performance and the business strategies.

40 APPENDIX 1 Electronics 40 (mil. yen) JRC 165,000 5, ,192 3, ,252 7,713 58,500-2,500 45,802-2,353 42,129-2,080 NJR 50,000 3,200 47,817 3,127 45,221 2,918 24,600 1,450 23,868 1,899 21,647 1,200 NJRC 32, , , , UJRC 16, , , , Sub total 215,000 8, ,298 7, ,929 11,822 83,100-1,050 93, , Elimination -1, , , , , , Total 214,000 9, ,367 8, ,115 12,703 77, , , Brakes JPN Overseas (mil. yen) NISB 25,500 1,100 25,272 1,142 28,008 1,950 12, , ,201 1,064 NISB Subsidiaries 46,800 5,000 45,699 5,722 41,287 5,267 22,000 1,900 23,377 2,816 20,102 2,679 TMD group 98, , , , , , Overseas total 145,600 5, ,486 5, ,932 4,605 72,000 2,600 74,215 2,966 70,111 2,568 Sub total 171,100 6, ,758 6, ,940 6,555 84,500 3,100 87,080 3,424 84,312 3,632 Elimination -8,000-7,400-5,721-7,728-6,054-8,623-4,000-3,700-2,973-3,740-2,936-4,358 Total 163, , ,886-2,068 80, , , Breakdown of operating Mar est. Mar est. Mar Mar (a) NISB (JPN + Overseas) 6,100 6,864 7,217 2,400 3,274 3,743 (b) TMD 2,200 1,725 1,013 1, Apr.-Sep est. Mar Mar Apr.-Sep est. Apr.-Sep Apr.-Sep Apr.-Sep Apr.-Sep (c) TMD (Adjustment for Japanese accounring standard) -2,400-2,899-3,382-1,200-1,241-1,753 before goodwill amortization 5,900 5,690 4,847 2,600 2,983 2,721 Goodwill amortization -6,400-6,576-6,915-3,200-3,299-3, , Exchange rate JPY/EUR

41 APPENDIX 2 Precision instruments Precise processing etc. Plastic molding 41 (mil. yen) NISM 8, , , , , , Subsidiaries 5, , , , , , Sub total 13, , , , , , NISM 4, , , , , , Subsidiaries 44,800 1,700 13, , , , , Sub total 49,400 1,800 18, , , , , Elimination -2, , , , , ,972 3 Total 60,700 1,400 29, , , , , Chemicals Environmental and energy related products (*) (mil. yen) 9,400 1,000 6, , , , , Others , Sub total 10,000 1,100 7, , , , , Subsidiaries Elimination Total 10,500 1,200 8, , , , , * Breakdown Bipolar plates for fuel cells Functional chemicals (Carbodilite) Mar est. Mar Mar Apr.-Sep est. Apr.-Sep Apr.-Sep Mar est. Mar Mar Apr.-Sep est. Apr.-Sep Apr.-Sep , , , , , , Insulator 6, , , , , , Breakdown total 9,400 1,000 6, , , , ,

42 APPENDIX 3 42 Textiles Fine papers Overseas JPN (mil. yen) NIST 23, , , , , , Subsidiaries 27,100 1,500 29,257 1,475 19,665-1,046 13, , , JPN total 50,800 2,100 52,667 1,766 43, ,000 1,100 26, , Brazil 3, , , , , , Indonesia 14, , , , , , China 3, , , , , ,357-8 Overseas total 20, , , , , , Sub total 71,400 2,600 73,713 2,189 64, ,400 1,300 36,883 1,054 33, Elimination -14, , , , , , Total 56,800 2,300 57,503 1,872 48, ,000 1,100 28, , Papers Mar est. Mar Mar Apr.-Sep est. Apr.-Sep Apr.-Sep Mar est. Mar Mar Apr.-Sep est. Apr.-Sep Apr.-Sep (mil. yen) Household papers 21,300 1,100 20, , , , , NISP 9, , , , , , Subsidiaries 8, , , , , , Fine papers total 18, , , , , , Sub total 39,400 1,600 38, , , , , Elimination -5, , , , , , Total 34,000 1,600 32, , , , ,

43 APPENDIX 4 43 Real estate (mil. yen) NISH 8,800 5,000 9,486 5,655 10,540 6,531 4,100 2,400 4,678 2,717 5,316 3,386 Subsidiaries 1, , , Sub total 10,200 5,100 10,902 5,795 11,986 6,669 4,800 2,500 5,382 2,771 6,040 3,463 Elimination -2, , , , , ,420 0 Total 8,200 5,100 8,357 5,795 9,246 6,669 3,800 2,500 4,103 2,770 4,620 3,463 Others, Corporate costs (mil. yen) Other business 22, , , , , , Corporate costs -4,800-4, ,177-2, , ,115 Total 22,700-4,500 27,327-4,293 27,317-4,287 10,700-2,200 13,192-2,212 13,540-2,147 Segmentation total Mar est. Mar est. Mar Mar Apr.-Sep est. Apr.-Sep Mar Mar est. Mar Mar Apr.-Sep est. Apr.-Sep Mar Apr.-Sep est. Apr.-Sep Apr.-Sep Apr.-Sep (mil. yen) Apr.-Sep Total 570,000 16, ,989 12, ,757 13, ,000 1, ,870 2, ,