Third Quarter Results (ended December 31, 2014)

Transcription

1 Fiscal Year 214 (ending March 31, 215) Third Quarter Results (ended December 31, 214) Brother Industries, Ltd. February 4, 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.

2 Consolidated Results for FY214 (ending March 31,215) < FY214 Q3 ( 9-month Results ) > Nine months ended Dec.31, 214 Q3 3/215 Q3 3/214 Rate of [] [] (w/o forex impact) 15.4% 5,214 4, (+1.4%) % Non-operating Income (Loss) Current Profits Extraordinary Income (Loss) Income Taxes Net Income 8.8% 6.8% 2.% % % (Yen) Exchange USD Rates EUR Net sales increased due to performance growth in the M&S business with strong sales of Machine tools 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 tax effect accounting. 215 Brother Industries, Ltd. All Rights Reserved. 2

3 Main Factors for s in < FY214 Q3 ( 9-month Results ) > 215 Brother Industries, Ltd. All Rights Reserved. 3

4 Printing & Solutions Sales & < FY214 Q3 ( 9-month Results ) > 4, 3,18 3, , , 1, 2,837 3,119 Communications & Printing equipment +9.9% ( +4.4% ) Electronic stationery +12.5% ( +6.2% ) 7.3% 8.7% 1.% Total % ( +4.6% ).% 3/214 Q3 3/215 Q3 3/214 Q3 3/215 Q3 Communications & Printing equipment Geographical Sales 3/214 Q3 3/215 Q3 Americas 1,126 1, % (+3.3%) Europe 95 1, % (+3.1%) Asia & Others % (+15.5%) Japan % (-3.1%) Electronic stationery Geographical Sales 3/214 Q3 3/215 Q3 Americas % (+7.2%) Europe % (+4.5%) Asia & Others % (+21.4%) Japan % (-17.6%) 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. 4

5 Personal & Home Sales & < FY214 Q3 ( 9-month Results ) > % % 1.9% 1.% Home sewing machines 3/214 Q3 3/215 Q % ( +14.2% ) 3/214 Q3 3/215 Q3.% Home sewing machines Geographical Sales 3/214 3/215 Q3 Q3 Americas % (+) Europe % (+2.7%) Asia & Others % (+24.8%) Japan % (-2.3%) Sales remained strong in the Americas due to the launch of new high-end models. Operating income significantly 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. 5

6 Machinery & Solution Sales & < FY214 Q3 ( 9-month Results ) > 1, 15 6.% Industrial sewing machines 4.% /214 Q3 3/215 Q3 +5.3% ( -1.4% ) Machine tools +18.1% ( +13.9% ) Total +64.3% ( +59.1% ) % 6.9% 3/214 Q3 3/215 Q3.% Industrial sewing machines Geographical Sales 3/214 3/215 Q3 Q3 Machine tools Geographical Sales 3/214 3/215 Q3 Q3 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. Americas % (+7.7%) Europe % (+12.7%) Asia & Others % (-7.4%) Japan % (+6.4%) Americas Europe Asia & Others 451 Japan % +58.% % +5.4% 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. 6

7 Network & Contents Sales & < FY214 Q3 ( 9-month Results ) > % 3.% -1.6% % -1.% 3/214 Q3 3/215 Q3 +2.8% /214 Q3 3/215 Q3 - Sales slightly increased year-on-year due to slower replacement demand for online karaoke machines, despite steady business operation in karaoke shops. Operating loss increase was due to decreased sales of equipment and an increase in expenses such as R&D costs. * 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. 7

8 Industrial Part Sales & < FY214 Q3 ( 9-month Results ) > 15 3.% % % ( +8.3% ) 7.1% 2 1.5% 3/214 Q3 3/215 Q3 3/214 Q3 3/215 Q3.% Industrial Part Geographical Sales 3/214 3/215 Q3 Q3 Americas % (+9.2%) Europe - (-) Asia & Others 3 - (-) Japan % (+4.9%) 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. 8

9 Consolidated for FY 214 ( ending March 31, 215) 3/215 3/214 Rate of 3/215 [Previous [] [] ] (A) (B) (A - B) (A/B - 1) (C) (A - C) 15.1% 7, 6, , (+1.4%) Non-operating Income (Loss) Current Profits Extraordinary Income (Loss) Income Taxes Net Income % % 7.%.7% 7.6%.2% % % (Yen) Exchange USD Rates EUR The assumed exchange rates have been revised: 1 USD=115 JPY (previous 15 JPY), 1 EUR = 13 JPY (previous 138 JPY). for Machine tools has been revised upward due to increasing demand from the IT-related industry in China. For Communications & Printing equipment, forecasts for individual regions excluding Europe have been revised downward. s for Industrial sewing machines, N&C business and Industrial part business have been revised downward by considering the current situation. 215 Brother Industries, Ltd. All Rights Reserved. 9

10 Printing & Solutions Sales & < for FY214( ending March 31,215 ) > 6, 5, 4, 3, 2, 4,38 3,841 4,77 4,756 4,186 4,228 Communications & Printing equipment +1.1% ( +5.% ) % Electronic stationery 1, /214 3/215 3/215 Previous +13.1% ( +6.9% ) Total +1.4% ( +5.2% ) 7.2% 7.5% 7.2% 3/214 3/215 3/215 Previous.% Communications &Printing equipment Geographical Sales 3/214 3/215 Previous 3/215 Americas 1,54 1,654 1, % (+5.2%) Europe 1,327 1,42 1, % (+2.2%) Asia & Others % (+15.1%) Japan % (-.5%) Electronic stationery Geographical Sales 3/214 3/215 Previous 3/215 Americas % (+8.7%) Europe % (+4.2%) Asia & Others % (+18.7%) Japan % (-11.4%) Hardware sales forecast has been mainly revised downward in each region excluding Europe. The effect from the change of the assumed exchange rates has been mainly reflected in operating income. *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. 1

11 Personal & Home Sales & < for FY214( ending March 31,215 ) > % Home sewing machine 9.7% 9.3% 9.5% 3/214 3/215 3/215 Previous +16.5% ( +1.2% ) 3/214 3/215 3/215 Previous.% Home sewing machines Geographical Sales 3/214 3/215 Previous 3/215 Americas % (+15.8%) Europe % (-1.9%) Asia & Others % (+23.8%) Japan % (-2.2%) Sales forecasts for Europe and Japan have been revised downward. The effect from the change of the assumed exchange rates has been mainly reflected in operating income. *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. 11

12 Machinery & Solution Sales & < for FY214( ending March 31,215 ) > 1,5 4.% 1, /214 3/215 Previous Industrial sewing machines Geographical Sales 3/214 3/215 Previous 3/215 1, /215 Americas % (+1.2%) Europe % (+1.4%) Asia & Others % (-9.2%) Japan % (-7.7%) Industrial sewing machines +3.8% ( -3.1% ) Machine tools +11.% ( +96.5% ) Total +59.8% ( +54.2% ) Machine tools Geographical Sales 3/214 3/215 Previous For Industrial sewing machines, forecast for Southeast Asia has been mainly revised downward by considering the current situation. For Machine tools, forecast has been revised upward due to increasing demand from IT-related customers. Operating income forecast has been revised upward due to upwardly-revised sales forecast for Machine tools. *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 / % % 3/214 3/215 Previous Americas % Europe % Asia & Others Japan % % 3/215 3.% 1.%.%

13 Network & Contents Sales & < for FY214( ending March 31,215 ) > % 3/214 3/215 3/215 Previous +7.4% 5 5.9% 1.% 3/214 3/215 Previous 1.2% 3/215.% for Karaoke business has been revised downward. Operating income forecast has been revised downward due to downwardly-revised sales. * 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. 13

14 Industrial Part Sales & < for FY214( ending March 31,215 ) > % 7 6.9% 3.8% 3 3/214 3/215 3/215 Previous +9.3% ( +8.3% ) 1.7% 3/214 3/215 3/215 Previous.% Industrial Part Geographical Sales 3/214 3/215 Previous 3/215 Americas % (+12.5%) Europe - (-) Asia & Others (-) Japan % (+4.4%) Sales forecast for Americas has been revised downward by considering the current situation. Operating income forecast has been revised downward due to downwardly-revised sales forecast and an increase in expenses. 215 Brother Industries, Ltd. All Rights Reserved. 14

15 Consolidated Results for FY214 (ending March 31,215) < FY214 Q3 ( 3-month Results ) > Non-operating Income (Loss) Current Profits Extraordinary Income (Loss) Income Taxes Net Income Three months ended Dec.31, 214 Q3 3/215 Q3 3/214 Rate of [] [] (w/o forex impact) 2.3% 1,968 1, (+13.4%) % 8.1% 7.% 1.1% % % (Yen) Exchange USD Rates EUR Net sales showed double-digit growth due to strong sales of Machine tools and the positive effect of the yenʼs depreciation. Operating income increased mainly due to increased sales in the M&S business and the yenʼs depreciation. 215 Brother Industries, Ltd. All Rights Reserved. 15

16 Main Factors for s in < FY214 Q3 ( 3-month Results ) > > 215 Brother Industries, Ltd. All Rights Reserved. 16

17 Printing & Solutions Sales & < FY214 Q3 ( 3-month Results ) > 2, 4.% 1,5 1,326 1, 5 1,154 1,36 1,187 Communications & Printing equipment +14.6% ( +7.3% ) Electronic stationery +17.1% ( +8.3% ) Q3 3/214 Q3 3/215 Total +14.9% ( +7.4% ) 7.3% 7.% Q3 3/214 Q3 3/215.% Communications & Printing equipment Electronic stationery Geographical Sales Geographical Sales Q3 3/214 Q3 3/215 Q3 3/214 Q3 3/215 Americas % (+9.%) Americas % (+8.1%) Europe % (+.5%) Europe % (+2.6%) Asia & Others % (+21.9%) Asia & Others % (+26.1%) Japan % (+6.2%) Japan % (+1.%) Sales in each region remained steady. In Japan, although demand for inkjet printers was weak at the year-end, overall sales including LBP increased year-on-year. Operating income increased due to increased sales of consumables and the positive effect of forex. *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. 17

18 Personal & Home Sales & < FY214 Q3 ( 3-month Results ) > % % 1.% 9.8% Home sewing machines Q3 3/214 Q3 3/ % ( +17.5% ) Q3 3/214 Q3 3/215.% Home sewing machines Geographical Sales Q3 3/214 Q3 3/215 Americas % (+2.2%) Sales remained strong in the Americas due to the launch of new high-end models. Europe % (+12.%) Asia & Others % (+27.6%) Japan % (+.9%) Operating income significantly 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. 18

19 Machinery & Solution Sales & < FY214 Q3 ( 3-month Results ) > % % Industrial sewing machines Geographical Sales Q3 3/214 Q3 3/215 Q3 3/214 Q3 3/215 Americas % (-.4%) Europe % (+2.8%) Asia & Others % (-9.1%) Japan % (-4.5%) Machine tools Industrial sewing machines +7.4% ( -3.% ) Machine tools Total % ( +133.% ) +81.4% ( +72.% ) Geographical Sales Q3 3/214 Q3 3/215 Americas % Europe 6 5 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 % Asia & Others % Japan % 1 7.1% 16.% Q3 3/214 Q3 3/215.%

20 Network & Contents Sales & < FY214 Q3 ( 3-month Results ) > % -2.1% -1.8%.% -3-2 Q3 3/214 Q3 3/ % -1 Q3 3/214 Q3 3/215-1.% Sales marginally increased due to slower replacement demand for online karaoke machines, despite steady business operation in karaoke shops. Operating income was in the red due to decreased sales of equipment and an increase in expenses such as R&D costs. * 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. 2

21 Industrial Part Sales & < FY214 Q3 ( 3-month Results ) > % % -.% -.1% Q3 3/214 Q3 3/ % ( +1.5% ) -5 Q3 3/214 Q3 3/215-1.% Industrial Part Geographical Sales Q3 3/214 Q3 3/215 Sales were approximately at the same level year-on-year. Americas % (-1.5%) Europe - (-) Asia & Others 1 - (-) Operating income fell due to increased costs such as depreciation. Japan % (-1.7%) 215 Brother Industries, Ltd. All Rights Reserved. 21

22 R&D expenses, Capital expenditure, Depreciation and amortization and Inventories R&D expenses Capital expenditure and Depreciation and amortization Capital expenditure Depreciation and amortization Q3 3/214 Q3 3/215 3/214 3/215 Q3 3/214 Q3 3/215 3/214 3/215 Inventories Inventories Inventories / Cost of sales (Number of months) 1,5 1, 5 1, ,34 1, ,251 1, Brother Industries, Ltd. All Rights Reserved. Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec

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