FY2015 3Q Financial Results Fujikura Ltd. February 1, 2016 Contents 1. FY2015 3Q Financial Results and FY2015 Forecasts 2. Information by Segment 3. Shareholder Return 1 1.FY2015 3Q Financial Results and FY2015 Forecasts 2 FY2015 3Q Financial Results and FY2015 Forecasts （Unit：JPY in Billion） FY2014 Net（単位：億円） Sales Operating Income Operating Income Margin（%） Equity Method Income (Loss) Ordinary Income (Loss) Net Income (Loss) attributable to parent company shareholders Net Income per Share （JPY） Dividend per share （JPY） Exchange Rate（JPY／USD） CU Base（'000JPY／ton） FY2015 FY2014 1-3Ｑ FY2015 （Forecasted on October, 29） FY2015 1-3Ｑ FY2015 491.9 661.5 523.9 690.0 690.0 19.6 25.0 26.9 32.0 32.0 4.0 3.8 5.1 4.6 4.6 （0.0） （0.3） 0.3 (0.0） （0.1） 18.0 21.0 23.9 25.0 25.0 9.7 12.2 15.3 15.0 15.0 30.15 37.93 50.07 48.86 48.86 － 7.00 － 8.00 8.00 106.73 109.76 121.75 － － 805 766 642 － － 3 Summary of FY2015 3Q Results and FY2015 Forecasts Net sales in 3Q increased on a QoQ basis owing to the effects of depreciation of yen and net sales growth of electronics business. Accordingly, operating income, ordinary income and net income increased on a QoQ basis because of effects of depreciation of yen and net sales growth of electronics business. Regarding FY2015 forecasts, we maintain the figures released last time. 4 FY2015 3Q Net Sales by Factor（QoQ basis） Net sales （Unit: JPY in Billion） Electronics Business Effects of JPY depreciation Automotive Products Effects of Copper Business Price (6.5) +17.6 (4.7) Others (2.7) +28.2 523.9 491.9 FY2014/3Q Accumulated Results 32.0 higher than FY2014/3Ｑ FY2015/3Q Accumulated Results 5 FY2015 3Q Operating Income by Factor（QoQ basis） Operating Income （Unit: JPY in Billion） Electronics Business Effects of JPY depreciation Automotive Products Business (3.0) +6.0 +4.3 26.9 19.6 FY2014/3Q Accumulated Results 7.3 higher than FY2014/3Q FY2015/3Q Accumulated Results 6 FY2015 3Q Extraordinary Profit and Loss Extraordinary Profit and Loss （Unit: JPY in Billion） FY2014 1-3Ｑ Full Year FY2015 1-3Ｑ Operating Income 19.6 25.0 26.9 Equity Method Income (0.0) (0.3) 0.3 18.0 21.0 23.9 Extraordinary Gains 0.1 2.2 0.9 Extraordinary Losses 1.3 3.0 3.1 16.8 20.2 21.7 Total Income Taxes 6.0 6.9 5.4 Minority Interests in Income 0.9 1.1 0.9 9.7 12.2 15.3 Ordinary Income Income before Income Taxes and Minority Interests Net Income (Loss) attributable to parent company shareholders 7 Consolidated B/S (1) （Unit: JPY in Billion） 〈Assets〉 Current Assets As of March 31, 2015 As of December 31, 2015 Difference 577.5 600.8 +23.3 294.6 313.1 +18.4 Cash and Deposits 35.7 48.4 +12.6 Notes and Account Receivable 157.0 155.4 (1.5) 78.5 86.2 +7.6 282.8 287.7 +4.8 185.9 180.1 (5.7) Inventories Fixed Assets Tangible Fixed Assets Intangible Fixed Assets 14.4 22.9 +8.5 Sub Total 200.3 203.1 +2.7 Total Investments and Other Assets 82.5 84.5 +2.0 Effects of exchange rate - JPY 9.2 Billion March, 2015 Baht 1=JPY3.69 December 2015 Baht 1= JPY3.34 Secured liquidity on hand to prepare for the payment of working capital following increase of net sales Effected by mainly foreign exchange rate CAPEX JPY 21.2 Billion Depreciation Cost JPY20.4 Billion Increase of goodwill by acquiring an optical parts manufacturing company 8 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 December 31, 2015 Difference 577.5 600.8 +23.3 ((19.7)) ((22.2)) ((2.4)) 343.0 358.7 +15.7 78.6 83.2 +4.5 205.1 215.8 +10.7 37.0 38.7 +1.6 234.5 242.1 +7.5 187.8 ((19.7)) 200.7 ((22.2)) +12.8 ((2.4)) 30.6 23.9 (6.7) 15.9 17.3 +1.4 Effects of growth of working capital Decrease of foreign currency translation adjustment -JPY7.8 billion Valuation difference on available-for- sale securities ＋0.3JPY billion 9 2. By Segment 10 Financial Records and Forecasts by Segment （Unit: JPY in Billion） Net Sales Segment Power & Telecommunication Systems Company Operating Income and Margin FY2014 1-3Ｑ 272.5 FY2015 FY2015 Difference Forecasts 1-3Ｑ 277.6 5.1 372.8 Electronics Business Company 104.3 130.9 26.6 163.5 Automotive Products Company 103.7 102.7 (1.0) 136.4 Real Estate Business Company 8.0 8.0 0.0 10.6 Others 3.3 4.5 1.2 6.5 491.9 523.9 32.0 690.0 Total FY2014 1-3Ｑ FY2015 FY2015 Difference Forecasts 1-3Ｑ 9.0 12.2 3.2 15.0 3.3% 4.4% 1.1% 4.0% 4.9 11.8 6.9 12.4 4.7% 9.0% 4.3% 7.6% 3.8 1.1 (2.7) 2.2 3.7% 1.2% （2.5%） 1.6% 3.9 4.1 0.2 5.3 48.8% 50.9% 2.1% 50.4% (2.0) (2.3) (0.3) (2.9) 19.6 26.9 7.3 32.0 4.0% 5.2% 1.2% 4.6% 11 Power & Telecommunication Systems Company Through 1Q to 3Q in FY2015, both net sales and operating income of Optical Fiber Unit increased owing to depreciation of yen and strong demand in overseas market. Both net sales and operating income are estimated to increase for full year. （Unit：JPY in Billion） Net sales & Operating Income Margin Infrastructure Unit Infrastructure Unit Optical Fiber Unit Through 1Q to 3Q in FY2015, net sales decreased due to effects of copper price, and the same trend is expected to continue for full year. OP (%) 372.8 366.2 Optical Fiber Unit 277.6 272.5 219.5 221.8 161.8 168.0 3.3% 104.2 Through 1Q to 3Q in FY2015, net sales increased owing to the strong demand in overseas market in addition to the effects of depreciation of yen, and the same trend is expected to continue for full year. 4.4% 115.7 FY2014/1-3Ｑ FY2015/1-3Ｑ 144.3 3.2% FY2014 153.1 4.0% Note: Comments on QoQ FY2015 Est. 12 Electronics Business Company Through 1Q to 3Q in FY2015, both net sales and operating income drastically increased in FPC mainly . Accordingly, both net sales and operating income are expected to increase by FPC mainly. （Unit：JPY in Billion） Net sales & Operating Income Margin ＦＰＣ Connector Others OP (%) 163. 5 130. 9 104. 3 Through 1Q to 3Q in FY2015, net sales increased on QoQ basis owing to demands for smartphones and other factors, and the same trend is expected to continue for full year. Connector 140. 4 Through 1Q to 3Q in FY2015, net sales decreased on QoQ basis due to connectors for mobile base stations and industrial machines, and the same trend is expected to continue for full year. 99. 2 70. 8 79. 6 51. 2 Others 32. 5 24. 9 27. 9 FPC 23. 7 4.7％ 9.0％ 27. 6 FY2014/1-3Q FY2015/1-3Ｑ Through 1Q to 3Q in FY2015, net sales remains in the same level, but sales of HDD is forecasted to decrease due to shrinkage of its market. 29. 3 37. 0 4.9％ 35. 0 7.6％ FY2014 FY2015 Est. Note: Comments on QoQ 13 Automotive Products Company Through 1Q to 3Q in FY2015, both net sales and operating income decreased due to the effects of Chinese customer's production reduction , European customer's change of production plan and the increase of production costs in European sites, although it was strong in the North American Region. Both net sales and operating income are forecasted to decrease for full year. （Unit：JPY in Billion） Automotive Products Net sales & Operating Income Margin OP(%) 139.2 103.7 136.4 102.7 Through 1Q to 3Q in FY2015, both net sales and operating income decreased due to the effects of Chinese customer's production reduction and European customer's change of production plan, although it was strong in the North American Region. Note: Comments on QoQ 3.7% 1.2% FY2014/1-3Ｑ FY2015/1-3Ｑ 3.1% FY2014 1.6% FY2015 Est. 14 Real Estate Business Company Revenues of leasing real estate properties continue to contribute to consolidated operating income. （Unit：JPY in Billion） Real Estate Net sales & Operating Income Margin OP(%) ■Stable rental revenues are continuously expected. 10.6 8.0 48.8％ 10.6 8.0 50.9％ FY2014/1-3Ｑ FY2015/1-3Ｑ 47.9％ FY2014 50.4％ FY2015 Est. (参考値） 15 CAPEX and Depreciation （Unit：JPY in Billion） FY2014 FY2015 1-3Ｑ Full Year 1-3Ｑ CAPEX 17.9 24.6 21.2 （for manufacturing business） 17.7 24.4 21.1 0.1 0.1 0.1 Depreciation Cost 20.8 28.2 20.4 （for manufacturing business） 19.4 26.2 19.1 1.4 1.9 1.3 （for real estate business） （for real estate business） Note: The above figures include leasing costs. 16 3. Shareholder Return 17 Profit Return Basic policy Total return ratio 30% or more FY2015 forecasts 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 32.6% 18 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 3Q Appendix】 Net Sales and Operating Income by Segment Net Sales records and estimations by segment (Unit: JPY in Billion) FY2014 FY2015 released on October 29 FY2015 Full Year 4Q Est. 2H Est. Full Year Est. Full Year Forecasts 1Q 2Q 3Q 4Q 1H 2H Infrastructure 52.9 56.6 58.6 53.7 109.5 112.3 221.8 52.8 54.3 54.7 57.7 107.1 112.4 219.5 222.6 Optical Fiber 33.0 33.6 37.7 40.0 66.6 77.7 144.3 39.1 38.4 38.2 37.4 77.5 75.6 153.1 151.4 85.8 90.4 96.4 93.7 176.1 190.1 366.2 91.9 92.7 93.0 95.2 184.6 188.2 372.8 374.0 10.8 17.3 23.2 19.5 28.1 42.7 70.8 19.9 29.5 30.2 19.6 49.4 49.8 99.2 91.4 7.1 8.1 9.8 7.5 15.2 17.3 32.5 7.8 8.1 7.8 5.6 15.9 13.4 29.3 32.4 10.0 8.9 9.0 9.1 18.9 18.1 37.0 9.8 9.6 8.2 7.4 19.4 15.6 35.0 34.4 27.9 34.3 42.0 36.0 62.2 78.1 140.4 37.6 47.2 46.1 32.6 84.8 78.7 163.5 158.3 34.6 32.1 36.9 35.5 66.7 72.5 139.2 34.4 32.8 35.5 33.7 67.2 69.2 136.4 139.2 Real Estate Company 2.6 2.8 2.6 2.6 5.4 5.2 10.6 2.7 2.7 2.6 2.6 5.4 5.2 10.6 10.6 Others 1.0 1.2 1.0 1.5 2.3 2.5 4.8 1.6 1.5 1.4 2.0 3.1 3.4 6.5 7.8 152.1 160.7 179.1 169.6 312.8 348.7 661.5 168.4 176.8 178.7 166.1 345.2 344.8 690.0 690.0 Power & Telecommunication FPC Connector Others Electronics Business Company Automotive Products Company Total 1Q 2Q 3Q 1H Operating Income records and estimations 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 3.8 2.8 8.4 6.6 15.0 15.0 0.0 1.4 3.4 1.9 1.5 5.4 6.9 2.1 4.8 4.9 0.6 6.9 5.5 12.4 10.6 1.5 0.3 1.9 0.4 1.8 2.4 4.3 0.7 (0.2) 0.6 1.1 0.5 1.7 2.2 3.8 Real Estate Company 1.3 1.3 1.2 1.2 2.7 2.4 5.1 1.3 1.4 1.4 1.2 2.7 2.6 5.3 5.2 Others (0.5) (0.6) (0.9) (1.0) (1.1) (1.9) (3.0) (0.8) (0.8) (0.7) (0.6) (1.6) (1.3) (2.9) (2.7) Total 5.7 4.9 9.0 5.4 10.6 14.4 25.0 7.8 9.2 9.9 5.1 17.0 15.0 32.0 32.0 Fujikura Ltd.