[PDF930KB]

st.
1
FY2015
Half
Financial Results
Fujikura Ltd.
October 29, 2015
I. The last year of 2015 Mid-term Business Plan
Toward Achieving Business Strategy Goal
Yoichi Nagahama,
President & CEO
II. FY2015 1st. Half Financial Results
Hideo Shiwa,
Senior Vice President & Member of the Board
1
I. The last year of 2015 Mid-term Business Plan
toward Business Strategy Goal
Review of FY2015 1st. Half
Current business environments
FY2015 forecasts
Progress of key initiatives in FY2015
Comparison between FY2015 forecasts vs.
2015 Mid-term Goals
6. Actions in FY2015 2H toward 2020 Midterm Business Plan Start
1.
2.
3.
4.
5.
2
1. Review of FY2015 1st. Half
(Unit:JPY in Billion)
Net Sales
Original
Plan
FY2015 1st.
Half
Results
Difference
330.0
345.2
+15.2
Operating Income
13.0
17.0
+4.0
Operating Income Margin
3.9%
4.9%
+1.0
Ordinary Income
10.0
14.2
+4.2
Net income attributable to
parent company shareholders
6.0
8.5
+2.5
Net Income per Share(JPY)
19.41
27.77
+8.36
Net Sales and net income has increased compared to the original forecast
・In Telecommunication business, optical fibers, optical devices and fusion
splicers were favorable in 1Q.
・In Electronics business, FPC strong demand continued from 1Q to 2Q.
・Automotive products business faced difficulties in Chinese market.
3
2. Current Business Environments
 Global FTTH market is expanding.
Strong demand for optical fibers continues.
 Regarding FPC and connectors for smartphones, demand trends
of 4Q (seasonality) need to be watched.
 Slow-down of Chinese economy impacted our business including
automotive, smartphone- related and industrial equipment, and
the future is uncertain.
 Automotive products is firm in US and Europe, but the impact
of an emission scandal is one of our concerns.
4
3. FY2015 Forecasts
(Unit:JPY in Billion)
Net Sales
Original
Plan
FY2015
Forecasts
Difference
680.0
690.0
+10.0
Operating Income
30.0
32.0
+2.0
Operating Income Margin
4.4%
4.6%
+0.2
Ordinary Income
25.0
25.0
±0.0
Net income attributable to parent
company shareholders
15.0
15.0
±0.0
Net Income per Share(JPY)
48.52
48.72
+0.2
・Based on the 1H results, we have revised operating income upward.
・Ordinary income and net income are remained unchanged due to
expected increase of non-operating expenses.
5
4. Progress of key initiatives in FY2015
Items
Major Actions
1.Accerelating
Globalization
 Strategic sites for infrastructure business
Brazil
In April, 2015, started to produce OPGW・ACSR
Myanmar Established a joint venture with Barons,
and started its operation in April, 2015
2.Further
improvement
of profitability
 Following the growth of our major customers
Electronics business
Expanding orders mainly in FPC
business
Telecommunication business Expanding business of overseas
FTTx and data centers
3.Paving the
way to new
business areas
 Fiber Laser Favorable business environment of pulse fiber lasers
Concentrating on the increasing the number of
customer high power fiber lasers
 Active Optical Cable Entered the expanding market
4.Structural
Reform
 Continuously promoting structural reform of domestic
infrastructure business
6
5. Comparison between FY2015 forecasts vs 2015 Mid-term Goals
In-house companies
(Unit：JPY in billlion,%)
2015 Mid-term Goals
Net Sales
Paving the Way to New Business Areas
190.0
145.0
335.0
145.0
110.0
10.0
4.0
-
Total
650.0
Infrasructure
Optical Fiber
Power & Telecommunication
Electronics Business ※1
Automotive Products
Real Estates
Others
OP Margin
FY2015 Forecasts
Net Sales
OP Margin
5.4%
6.0%
5.5%
50.0%
-25.0%
-
222.6
151.4
374.0
158.3
139.2
10.6
7.8
4.0%
6.7%
2.7%
48.7%
-34.2%
6.3%
690.0
4.6%
※1 Only Electronics Business's Mid-term Goal was revised due to the Thai flood. The original plan was 190.0bn 6.8%
682.3
5.2%
The last year of 2015 Mid-term Business Plan
OP Margin is expected to achieve 80 % of the goals.
If New Business, which was not included in 2015 Mid-term Business Plan, was excluded,
7
6. Actions in FY2015 2H toward 2020 Mid-term Business Plan Start
We expect to achieve 80% of Operating Income Margin of FY2015
Mid-term Business Plan, but there are some challenges ahead.
Electronics business put on the road to revival.
It is necessary to take actions for expanding orders in the future.
Infrastructure will finish structural reform in this fiscal year,
and establish overseas business foundation for future growth.
Telecommunication will follow expansion of
overseas FTTx and data center markets.
Automotive products will expand customer foundation
while eyeing on an emission scandal .
We plan to formulate the next (2020) Mid-term Business Plan which
includes strategies to establish foundation for profit further,
and bridge to the sustainable growth, and will release it in May, 2016.
8
II. Financial Results
1. FY2015 1H Financial Results and FY2015 Forecasts
2. Information by Segment
3. Shareholder Return
9
1. FY2015 1H Financial Results and
FY2015 Forecasts
10
FY2015 1H Financial Results and FY2015 Annual Forecasts
（Unit：JPY in Billion）
FY2014
1H
Results
Net Sales
312.8
2H
Results
348.7
FY2015
FY2015
FY2014
Results
661.5
1H
Results
（Released on May 8)
FY2015
2H
Forecasts
Annual
Forecasts
1H
2H
345.2
344.8
690.0
330.0
680.0
（単位：億円）
Operating Income
10.6
14.4
25.0
17.0
15.0
32.0
13.0
30.0
3.4
4.1
3.8
4.9
4.4
4.6
3.9
4.4
(0.0)
(0.2)
(0.3)
(0.2)
0.1
(0.1)
0.2
0.9
Ordinary Income (Loss)
9.6
11.4
21.0
14.2
10.8
25.0
10.0
25.0
Net Income (Loss) attributable
to parent company
shareholders
5.4
6.8
12.2
8.5
6.5
15.0
6.0
15.0
16.87
21.06
37.93
27.77
20.95
48.72
19.41
48.52
3.50
3.50
7.00
4.00
4.00
8.00
4.00
8.00
103.01
116.82
109.76
121.88
115.00
－
115.00
115.00
757
750
766
741
700
－
700
700
Operating Income
Margin（%）
Equity Method Income
(Loss)
Net Income per Share
（JPY）
Dividend per share
（JPY）
Exchange Rate（JPY／USD）
CU Base（'000JPY／ton）
11
FY2015 1H Financial Results and FY2015 Forecasts
 Net sales increased on a YoY basis owing to the effects of depreciation of
yen and sales growth of electronics business.
 Accordingly, operating income, ordinary income and net income increased
on a YoY bases because of the effects of depreciation of yen and sales
growth of electronics business.
 Regarding annual forecasts, we have revised operating income upward
based on the 1H results, but ordinary income and net income are remained
unchanged due to expected increase of non-operating expenses.
12
FY2015 1st. Half Net Sales by Factor（year-on-year basis）
Net Sales
（Unit: JPY in Billion）
Effects of JPY
depreciation
Electronics
Business
+15.5
Automotive
Products
（5.1）
Others
（2.4）
+24.4
345.2
312.8
FY2014 1st Half
32.4 higher than
FY2014 1st. Half
FY2015 1st Half
13
FY2015 1st. Half Operating Income by Factor（year-on-year basis）
Operating Income
（Unit: JPY in Billion）
Electronics
Business
Effects of JPY
depreciation
Automotive
Products
（1.6）
Others
（0.1）
+4.6
+3.6
6.4 higher than
FY2014 1st. Half
14
FY2015 1st. Half Extraordinary Profit and Loss
Extraordinary Profit and Loss
（Unit: JPY in Billion）
FY2014
1st. Half
2nd. Half
FY2014
FY2015
1st. Half
Operating Income
10.6
14.4
25.0
17.0
Equity Method
Income
(0.0)
(0.2)
(0.3)
(0.2)
9.6
11.4
21.0
14.2
Extraordinary Gains
0.1
2.1
2.2
0.5
Extraordinary Losses
0.3
2.7
3.0
1.5
Income before Income Taxes
and Minority Interests
9.4
10.7
20.2
13.3
Total Income Taxes
3.9
3.0
6.9
4.2
Minority Interests
in Income
0.0
1.1
1.1
0.5
5.4
6.7
12.2
8.5
Ordinary Income
Net Income (Loss) attributable to
parent company shareholders
15
Consolidated B/S (1)
（Unit: JPY in Billion）
〈Assets〉
Current Assets
Cash and Deposits
Notes and Account
Receivable
Inventories
As of March
31, 2015
As of Sept.
30, 2015
Difference
577.5
576.5
(1.0)
294.6
302.9
8.2
35.7
32.8
(2.8)
157.0
163.2
6.2
78.5
84.4
5.9
282.8
273.5
(9.3)
185.9
179.3
(6.5)
14.4
13.5
(0.9)
Sub Total
200.3
192.8
(7.5)
Total Investments
and Other Assets
82.5
80.7
(1.7)
Fixed Assets
Tangible Fixed
Assets
Intangible Fixed
Assets
Effects of foreign exchange rate
- 9.7 billion yen
March, 2015 1 baht=3.69 yen
Sept., 2015 1 baht=3.30 yen
Increase of sales of
Electronics Business Company
because of seasonal factor
Capital investment
+13.2 billion yen
Depreciation cost
-13.3 billion yen
Mainly due to the effect of
foreign exchange rate
Revaluation of securities
- 1.1 billion yen
16
Consolidated B/S (2)
（Unit: JPY in Billion）
Total
（Treasury Stock）
〈Liabilities〉
Notes and Account
Payable
Interest-bearing Debt
Other Current
Liability
〈Net Assets〉
Shareholder's Equity
（Treasury Stock）
Total Valuation and
Translation
Adjustment
Minority Interests
As of March
31, 2015
As of Sept.
30, 2015
Difference
577.5
576.5
(1.0)
((19.7))
(（22.2）)
(（2.4）)
343.0
345.1
2.0
78.6
84.7
6.0
205.1
197.2
(7.8)
37.0
41.1
4.0
234.5
231.4
(3.0)
1,878
((19.7))
192.9
((22.2))
5.0
((2.4))
30.6
22.9
(7.7)
15.9
15.6
(0.3)
Repaid by
operating cash flow
Decrease of foreign currency
translation adjustment - 7.4 billion yen
Valuation difference on available-forsale securities - 0.7 billion yen
17
2. By Segment
18
Financial Records and Forecasts by Segment
（Unit: JPY in Billion）
Operating Income and Margin
Net Sales
Segment
Power & Telecommunication
Systems Company
FY2014
1st. Half
Results
176.1
FY2015
1st. Half
Results
184.6
FY2015
Difference 2H Forecasts
8.5
189.4
Electronics
Business Company
62.2
84.8
22.6
73.5
Automotive
Products Company
66.7
67.2
0.5
72.0
Real Estate
Business Company
5.4
5.4
0.0
5.2
Others
2.3
3.1
0.8
4.7
312.8
345.2
32.4
344.8
Total
FY2014
1st. Half
Results
FY2015
FY2015
1st. Half Difference 2H Forecasts
Results
5.7
8.4
2.7
6.6
3.3%
4.6%
1.3%
3.5%
1.5
6.9
5.4
3.7
2.5%
8.2%
5.7%
5.1%
1.8
0.5
(1.3)
3.3
2.7%
0.8%
(1.9%)
4.6%
2.7
2.7
0.0
2.5
49.4%
51.7%
2.2%
47.4%
(1.1)
(1.6)
(0.5)
(1.1)
10.6
17.0
6.4
15.0
3.4%
4.9%
1.5%
4.4%
19
Power & Telecommunication Systems Company
 In FY2015 1H, both net sales and operating income increased on a YoY basis owing to effects of foreign exchange
rate and favorable sales of telecommunication business including optical fibers, optical devices and fusion splicers.
 In FY2015 2H, net sales is expected to increase, but operating income is to decrease in total, because sales of
Infrastructure is expected to increase owing to seasonal factor, while sales of Optical Fiber is expected to decrease
due to intensified competition, product mix etc.
（Unit：JPY in Billion）
Net sales & Operating Income Margin
Infrastructure
 In 2015 1H, it remained unchanged on a YoY basis.
 In 2015 2H, net sales is expected to increase partly
owing to seasonal factor of domestic construction.
Optical Fiber
 In 2015 1H, net sales increased owing to effects of
foreign exchange rates
 In 2015 2H, net sales is expected to decrease due to
intensified competition, product mix etc.
Comments
Above： FY2015 1H Results（YoY basis）
Below： FY2015 2H Forecasts
20
Electronics Business Company
 In FY2015 1H, both net sales and operating income drastically increased partly owing to FPC.
 In FY2015 2H, both net sales and operating income are expected to decrease compared to 1H due to
decrease of demands by seasonal factors.
（Unit：JPY in Billion）
Net sales & Operating Income Margin
FPC
 In 2015 1H, net sales increased on YoY basis because
of strong demands for smartphones.
 In 2015 2H, net sales is expected to decreased
compared to 1H due to decrease of demands by
seasonal factors.
Connector
 In 2015 1H, it remained unchanged on a YoY basis.
 In 2015 2H, it is expected to be the same trend
with 1H.
Others
 In 2015 1H, it remained unchanged on a YoY basis.
 Net sales is expected to decrease compared to 1H
due to disappearance of a temporary factor in 1H
and shrink of PC market regarding HDD.
Comments
Above： FY2015 1H Results（YoY basis）
Below： FY2015 2H Forecasts
21
Automotive Products Company
 In FY2015 1H, both net sales and operating income are expected to decrease due to reduction in production
of Chinese customers aside from effects of foreign exchange rate.
 In FY2015 2H, both net sales and operating income are expected to increase owing to launch of new
models in European region and cost reduction including Asian region.
（Unit：JPY in Billion）
Automotive Products
Net sales & Operating Income Margin
Operating Income Margin
72.5
66.7
2.7%
3.3%
67.2
72.0
4.6%
0.8%
FY2014 1H FY2014 2H FY2015 1H
 In FY2015 1H, operating income decreased due to
decrease of net sales by downward revision of
Chinese customers' production plan and the rise of
overseas production costs by weak yen.
 In FY2015 2H, both net sales and operating income
are expected to increase owing to launch of new
models in European region and cost reduction
including Asian region.
Comments
Above： FY2015 1H Results（YoY basis）
Below： FY2015 2H Forecasts
2015 2H
Forecast
22
Real Estate Business Company
 Revenues of leasing real estate properties continue to contribute to
consolidated operating income.
（Unit：JPY in Billion）
Net sales & Operating Income Margin
Real Estates
■Stable rental revenues are continuously
expected.
(参考値）
23
CAPEX and Depreciation
（Unit：JPY in Billion）
FY2014
1H
2H
FY2014
FY2015
1H
FY2015
Forecasts
（May 8）
CAPEX
12.2
12.4
24.6
13.2
29.0
（for manufacturing
business）
12.1
12.3
24.4
13.1
28.4
0.1
0.0
0.1
0.0
0.6
Depreciation Cost
12.8
15.4
28.2
13.3
29.0
（for manufacturing
business）
11.9
14.3
26.2
12.4
27.3
0.9
1.0
1.9
0.6
1.7
（for real estate
business）
（for real estate
business）
Note: The above figures include leasing costs.
24
Interest-bearing Debts, Net Financial Profit and Free Cash Flow
（Unit: JPY in Billion)
FY2014
1st. Half
Interest-bearing Debts
Net Financial
Profit/Loss
Free Cash Flow
2nd. Half
FY2015
FY2014
1st. Half
198.3
205.1
205.1
197.2
(0.8)
(0.8)
(1.6)
(0.8)
(11.0)
8.6
(2.4)
7.6
Free Cash Flow = Cash Flow by Operating Activities + Interests Paid + Investing Cash Flow
25
3. Shareholder Return
26
Profit Return
Basic Policy Total Return Ratio
30% or more
FY2015 Forecast
 Dividends 8.0 yen per share
（Interim 4.0 yen per share, Year-end 4.0 yen per share, 2.4 billion yen）
FY2014 7.0 yen per share ( Interim 3.5 yen per share , Year-end 3.5 per share)
（1.0 yen of increase compared to FY2014）
 Repurchase of own shares 3.8 million shares/ 2.4 billion yen
Dividend Payout Ratio 16.3%
Total Return Ratio
32.5%
27
Special Notes:
Statements in this presentation that relate to future results and events (including statements regarding Fujikura’s revenue and
earnings guidance) are based on Fujikura’s current expectations. Actual results in future periods may differ materially from
those currently expected because of a number of risks and uncertainties. These factors include the effects of general economics
on the level of demand for Fujikura’s products and services, and on Fujikura’s ability to manage supply and delivery logistics; the
level and intensity of competition in the electronic and telecommunication equipment industries, the pricing pressures that
result, the ability of Fujikura to timely and effectively manage product transitions, component/material availability and cost; the
ability of Fujikura to develop new products based on new or evolving technology; and the ability of Fujikura to manage its
inventory levels to minimize excess inventory.
【Contact】 Investor Relation Group
TEL:+81 3 5606 1112
FAX:+81 3 5606 1539
E-mail: [email protected]
29
【FY2015 1H Appendix】
Net Sales and Operating Income by segment
Net Sales records and estimation by segment
(Unit: JPY in Billion)
FY2014
FY2015 Original
released on May 8
FY2015
Fiscal
Year
2Q
3Q
4Q
1H
2H
Infrastructure
52.9
56.6
58.6
53.7
109.5
112.3
221.8
52.8
54.3
107.1
115.5
222.6
103.3
Optical Fiber
33.0
33.6
37.7
40.0
66.6
77.7
144.3
39.1
38.4
77.5
73.9
151.4
74.2
85.8
90.4
96.4
93.7
176.1
190.1
366.2
91.9
92.7
184.6
189.4
374.0
177.5
10.8
17.3
23.2
19.5
28.1
42.7
70.8
19.9
29.5
49.4
42.0
91.4
40.6
7.1
8.1
9.8
7.5
15.2
17.3
32.5
7.8
8.1
15.9
16.5
32.4
15.8
10.0
8.9
9.0
9.1
18.9
18.1
37.0
9.8
9.6
19.4
15.0
34.4
17.9
27.9
34.3
42.0
36.0
62.2
78.1
140.4
37.6
47.2
84.8
73.5
158.3
74.4
34.6
32.1
36.9
35.5
66.7
72.5
139.2
34.4
32.8
67.2
72.0
139.2
69.4
Real Estate Company
2.6
2.8
2.6
2.6
5.4
5.2
10.6
2.7
2.7
5.4
5.2
10.6
5.4
Others
1.0
1.2
1.0
1.5
2.3
2.5
4.8
1.6
1.5
3.1
4.7
7.8
3.3
152.1 160.7 179.1 169.6
312.8
348.7
661.5
168.4
176.8
345.2
344.8
690.0
330.0
Power &
Telecommunication
FPC
Connector
Others
Electronics Business
Company
Automotive Products
Company
Total
1Q
2Q
Fiscal
Year (Est.)
1Q
1H
2H (Est.)
1H(Est.)
Operating Income record and estimation by segment
Power &
Telecommunication
Electronics Business
Company
Automotive Products
Company
3.3
2.4
3.3
2.7
5.7
6.0
11.7
4.4
4.0
8.4
6.6
15.0
6.3
0.0
1.4
3.4
1.9
1.5
5.4
6.9
2.1
4.8
6.9
3.7
10.6
3.3
1.5
0.3
1.9
0.4
1.8
2.4
4.2
0.7
(0.2)
0.5
3.3
3.8
2.3
1.3
1.3
1.2
1.2
2.7
2.4
5.1
1.3
1.4
2.7
2.5
5.2
2.7
Others
(0.5)
(0.6)
(0.9)
(1.0)
(1.1)
(1.9)
(3.0)
(0.8)
(0.8)
(1.6)
(1.1)
(2.7)
(1.7)
Total
5.7
4.9
9.0
5.4
10.6
14.4
25.0
7.8
9.2
17.0
15.0
32.0
13.0
Real Estate Company
Fujikura Ltd.