FY2015 Financial Results Fujikura Ltd. May 10, 2016 Contents 1.FY2015 Financial Results and FY2016 Forecasts 2.Information by Segment 3.Shareholder Return 1 1. FY2015 Financial Results and FY2016 Forecasts 2 FY2015 Financial Results （Unit：Yen in billion） FY2014 FY2015‐FY2014 Difference FY2015 661.5 678.5 17.0 25.0 32.6 7.5 Ratio of Operating Income to （単位：億円） Net Sales（%） 3.8 4.8 1.0 Equity Method Income (Loss) (0.3) (2.9) (2.6) Ordinary Income (Loss) 21.0 24.6 3.6 Net Income (Loss) attributable to owners of parent 12.2 11.3 (0.9) 37.93 36.98 (0.95) 7.00 8.00 1.00 109.76 120.16 － 766 677 － Net Sales Operating Income Net Income per Share （JPY） Dividend per share （JPY） Exchange Rate（JPY／USD） CU Base（'000JPY／ton） 3 Summary of FY2015 Business Results In FY2015, net sales increased on a YoY basis owing to effects of depreciation of yen and net sales growth of electronics business. Operating income and ordinary income increased on a YoY basis due to the effects of the depreciation of yen and net sales growth of electronics business. Net income decreased on a YoY basis due to posting a business structural reform cost in a extraordinary loss. 4 FY2015 Net Sales by Factor (YoY basis) Net Sales （Unit：Yen in billion） Effects of Effects of depreciation of Yen Copper price (10.0) Electronics Business Automotive Products Other +13.2 (7.1) (1.8) +22.7 17.0 higher than FY2014 5 FY2014 Operating Income by Factor (YoY basis) Operating Income （Unit：Yen in billion） Power & Telecommunication Automotive Electronics Systems Products Other +1.6 Effects of Business +0.3 (2.2) Effects of Copper price +4.6 deprecation of yen (0.6) +3.8 7.5 higher than FY2014 6 FY2015 Extraordinary Profit and Loss Extraordinary Profit and Loss （Unit：Yen in billion） FY2014 FY2015 Operating Income 25.0 32.6 Equity Method Income (0.3) (2.9) Ordinary Income 21.0 24.6 Extraordinary Gains 2.2 2.7 Extraordinary Losses 3.0 10.1 Income before Income Taxes and Minority Interests 20.2 17.1 Total Income Taxes 6.9 4.6 Net Income attributable to non-controlling interests 1.1 1.2 Net Income attributable to owners of parent 12.2 11.3 Viscas loss of entities accounted for using equity method 4.4 billion yen Business structural reform costs by Viscas joint venture reorganization 6.3 billion yen 7 Consolidated B/S（１） （Unit：Yen in billion） 〈Assets〉 Current Assets Cash and Deposits Notes and Account Receivable Inventories Fixed assets Tangible Fixed Assets Intangible Fixed Assets Sub Total Total Investments and Other Assets As of March 31, 2015 As of March 31, 2016 577.5 552.6 (24.8) 294.6 282.4 (12.2) 35.7 34.9 (0.7) Difference 157.0 143.8 (13.1) 78.5 79.2 +0.7 282.8 270.2 (12.6) 185.9 179.9 (5.9) 14.4 21.2 +6.8 200.3 201.2 +0.8 82.5 68.9 (13.5) Effects of exchange rates -23.5 billion yen Effects of strong yen and depreciation of currencies of emerging countries March 2015 March 2016 TB 3.69 3.20 Yuan 19.35 17.41 Dollar 120.15 112.62 Effects of exchange rates and drop of copper price Mainly effects of exchange rates Capital investment 31.9 billion yen Depreciation cost 26.6 billion yen Increase of goodwill by acquiring an optical components manufacturing and sales company Revaluation of securities -7.8 Assets by employee retirement benefit -5.4 8 Consolidated B/S（２） （Unit：Yen in billion） As of March 31, 2015 Total （Treasury Stock） 〈Liability〉 Notes and Account Payable Interest-bearing Debt Other Current Liability 〈Net Cash〉 Shareholder's Equity （Treasury Stock） Accumulated other comprehensive income Non-controlling interests As of March 31, 2016 Difference 577.5 552.6 (24.8) ((19.7)) ((25.3)) ((5.5)) 343.0 334.6 (8.3) 78.6 73.7 (4.9) 205.1 199.6 (5.4) 37.0 37.9 +0.8 234.5 217.9 (16.5) 187.8 ((19.7)) 193.6 ((25.3)) +5.7 ((5.5)) 30.6 4.9 (25.7) 15.9 19.4 +3.4 Treasury stocks as of the end of March, 2016 61 million shares Decrease of foreign currency translation adjustment -16.0 bn yen Valuation difference on available for sales securities -5.4 bn yen Total cumulative amount of adjustment regarding employee retirement benefit -4.1 bn yen 9 FY2016 Forecasts （Unit：Yen in billion） FY2016 First Half (Forecasts) FY2015 Net Sales FY2016 (Forecasts) Difference 678.5 330.0 690.0 11.5 32.6 12.0 28.0 (4.6) Ratio of Operating Income to Net Sales（%） 4.8 3.6 4.1 ▲0.7 Equity Method Income (Loss) (2.9) (0.4) 1.1 4.0 Ordinary Income (Loss) 24.6 10.5 25.0 0.4 Net Income (Loss) attributable to owners of parent 11.3 5.0 15.0 3.7 36.98 16.69 50.07 13.09 8.00 5.00 10.00 － 120.16 110.0 110.0 － 677 550 550 － Operating Income Net Income per Share （JPY） Dividend per share （JPY） Exchange Rate（JPY／USD） CU Base（'000JPY／ton） 10 FY2016 Forecasts Net sales is expected to be 690 billion yen that is 11.5 billion higher than that of the previous fiscal year owing to the increase of net sales of Electronics Business including FPC and other factors. Regarding incomes, operating income is expected to be 28 billion yen due to the effect of exchange rates. Ordinary income is to be 25 billion yen owing to the decrease of non-operating expense. Net income is expected to be 15 billion yen because of the decrease of extraordinary loss of the business structural reform costs which was posted in the previous fiscal year. 11 Net Sales by Factor (YoY basis) FY2015 Results vs. FY2016 Forecasts Net Sales （Unit：Yen in billion） Effects of exchange rate (40.3) 678.5 Automotive Other Electronics Products Power & (2.1) Telecommunication Business +5.8 Systems +30.4 Effects of copper price (17.3) +35.0 690.0 11.5 higher than FY2015 FY2015 FY2016 Est. 12 Operating Income by Factor (YoY basis)FY2015 Results vs. FY2016 Forecasts Operating Income （Unit：Yen in billion） Effects of exchange rate (4.9) Automotive Products +1.9 Electronics Business (2.1) Other +0.5 32.6 4.6 lower than FY2015 FY2015 28.0 FY2016 Est. 13 2. By Segment 14 Financial Records and Forecasts by Segment （Unit：Yen in billion） Operating Income & Ratio of Operating Income to Net Sales Net Sales Segment Power & Telecommunication System Company Electronics Business Company Automotive Products Company Real Estate Business Company Other Total FY2014 366.2 140.4 FY2016 1st Half 2016 FY2015 Forecasts Forecasts 364.1 161.2 176.2 82.8 363.3 180.1 139.2 135.9 63.9 131.4 10.6 10.7 5.0 10.1 4.8 6.6 2.0 5.2 661.5 678.5 330.0 690.0 FY2014 1st Half FY2016 2016 FY2015 Forecasts Forecasts 11.7 15.7 5.4 12.4 3.2% 4.3% 3.1% 3.4% 6.9 12.1 3.2 9.0 5.0% 7.5% 3.9% 5.0% 4.3 2.4 1.7 3.8 3.1% 1.7% 2.6% 2.9% 5.1 5.4 2.5 4.3 47.9% 50.4% 49.5% 42.5% (3.0) (2.9) (0.9) (1.5) 25.0 32.6 12.0 28.0 3.8% 4.8% 3.6% 4.1% 15 Power & Telecommunication Systems Company In FY2015, net sales remained the same level due to the depreciation of yen, although there were effects of drop of copper price. However, operating income increased owing to depreciation of yen and strong demand in both domestic and overseas markets. In FY2016, net sales is expected to remain unchanged owing to the effects of the reorganization of the domestic infrastructure business although there will be the effects of the drop of copper price. Operating income is expected to decrease due to the effects of the appreciation of yen. （Unit：Yen in billion） Net sales & Ratio of Operating Income to Net Sales Power Systems In FY2015, net sales decreased due to the effects of the drop of copper price. In FY2016, net sales is expected to remain unchanged owing to the effects of the reorganization of the domestic infrastructure business (Viscas and Fujikura Dia Cable ) although there will be effects of the drop in price of copper. Telecommunication Systems In FY2015, net sales increased because of the effects of exchange rates. In FY2016, net sales is expected to remain unchanged due to the effects of the exchange rates although there will be strong demand in overseas markets. 16 Electronics Business Company In FY2015, both net sales and operating income drastically increased on a YoY bases owing to FPC. In 2016, net sales will be expected to increase centering on FPC, but operating income is expected to decrease due to the intensive competition and the effects of exchange rates. （Unit：Yen in billion） Net sales & Ratio of Operating Income to Net Sales ＦＰＣ Connector Other Ratio pf Operating Income to Net Sales 180. 1 FPC In FY2015, net sales drastically increased owing to products for smart phones and others. In FY2016, net sales is expected to increase. 161. 2 Connector 140. 4 70. 8 97. 2 123. 4 In FY2015, net sales decreased due to products for smartphone bases and industrial machines. In FY2016, net sales is expected to increase owing to products for smartphones. その他 32. 5 3 7 . 0 5.0％ FY2014 29. 2 3 4 . 8 7.5％ FY2015 30. 6 2 6 . 1 5.0％ In FY2015, net sales of HDD decreased by the effects of consolidation of suppliers of our major customer. In FY2016, net sales of electronic wire is expected to decrease due to the change of specification of our customer. Net sales of HDD is expected to decrease due to the shrink of computer market. FY2016 Est. 17 Automotive Products Company In FY2015, net sales decreased due to the effects of a decreased production by Chinese customers. Operating income decreased because of the effects of a decreased production of Chinese customer and increase of production costs in European sites. In FY2016, net sales is expected to increase by launching new models if the effects of exchange rates are excluded in European and Latin American regions. Operating income is expected to increase owing to an improvement in production costs. （Unit：Yen in billion） Net sales & Ratio of Operating Income to Net Sales Ratio of Operating Income to Net Sales 139.2 135.9 3.1% FY2014 1.7% FY2015 131.4 Automotive Products In FY2015, net sales decreased due to the effects of a decreased production of Chinese customer. In FY2016, net sales in Latin American region is expected to increase by launching new models. 2.9% FY2016 Est. 18 Real Estate Business Company Revenues of leasing real estate properties continue to contribute to operating income. In FY2016, operating income is expected to decrease due to the change of rent and a temporary cost to acquire real estate. （Unit：Yen in billion） Net sales & Ratio of Operating Income to Net Sales Ratio of Operating Income to Net Sales 10.6 47.9％ FY2014 10.7 50.4％ FY2015 不動産 ■Stable rental revenues are continuously expected. 10.1 42.5％ FY2016 Est. (参考値） 19 CAPEX and Depreciation Cost （Unit：Yen in billion） FY2014 FY2016 Est. FY2015 CAPEX 24.6 31.9 47.0 （for manufacturing business） 24.4 31.3 38.0 0.1 0.6 9.0 Depreciation Cost 28.2 26.6 30.0 （for manufacturing business） 26.2 24.8 28.0 1.9 1.7 2.0 （for real estate business） （for real estate business） Note: The above figures include leasing costs. 20 Interest-bearing Debts, Net Financial Profit and Free Cash Flow （Unit：Yen in billion） FY2014 1st Half 2nd Half FY2015 Fiscal Year 1st Half 2nd Half Fiscal Year Interestbearing Debts 198.3 205.1 205.1 197.2 199.6 199.6 Net Financial Profit/Loss (0.8) (0.8) (1.6) (0.8) (0.5) (1.3) (11.0) 8.6 (2.4) 7.6 6.2 13.8 Free Cash Flow Free Cash Flow=Cash Flow by Operating Activities + Interest Paid + Investing Cash Flow 21 3. Shareholder Return 22 Profit Return Basic Policy of FY2015 Mid-term Total return ratio 30% or higher 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 with FY2014） Repurchase of own shares 9.6 million shares/ 5.5 billion yen Dividend payout ratio in FY2015 21.6% Total return ratio in FY2015 70.8% 23 Profit Return Basic Policy of FY2020 Mid-term Total return ratio 20% or higher FY2016 forecasts Dividends 10.0 yen per share （Interim 5.0 yen per share, Year-end 5.0 yen per share, 3.0 billion yen） （2.0 yen of increase compared with FY2015） 住 Retirement of treasury stocks Total shares repurchased from FY2012 to FY2015 61million shares/25.3 billion yen Shares repurchased in April, 2016 4 million shares/2.2 billion yen Regarding 65 million shares of treasury stocks repurchased, their retirement was approved at the Board of Directors today. Dividend payout ratio in FY2016 20% Total return ratio in FY2016 35% 24 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] 25 【FY2015 Appendix】 Net Sales and Operating Income by Segment Net Sales records and estimations by segment Unit: Yen in billion FY2014 FY2015 FY2016 Est 1Q 2Q 3Q 4Q 1H 2H Full Year 1Q 2Q 3Q 4Q 1H 2H Full Year 1H 2H 52.9 56.6 58.6 53.7 109.5 112.3 221.8 52.8 54.3 54.7 50.9 107.1 105.6 212.7 102.4 110.9 213.3 33.0 33.6 37.7 40.0 66.6 77.7 144.3 39.1 38.4 38.2 35.7 77.5 73.9 151.4 73.8 76.2 150.0 85.8 90.4 96.4 93.7 176.1 190.1 366.2 91.9 92.7 93.0 86.5 184.6 179.5 364.1 176.2 187.1 363.3 10.8 17.3 23.2 19.5 28.1 42.7 70.8 19.9 29.5 30.2 17.6 49.4 47.8 97.2 54.9 68.4 123.4 7.1 8.1 9.8 7.5 15.2 17.3 32.5 7.8 8.1 7.8 5.5 15.9 13.3 29.2 14.3 16.3 30.6 10.0 8.9 9.0 9.1 18.9 18.1 37.0 9.8 9.6 8.2 7.2 19.4 15.4 34.8 13.6 12.5 26.1 27.9 34.3 42.0 36.0 62.2 78.1 140.4 37.6 47.2 46.1 30.3 84.8 76.4 161.2 82.8 97.2 180.1 34.6 32.1 36.9 35.5 66.7 72.5 139.2 34.4 32.8 35.5 33.2 67.2 68.7 135.9 63.9 67.5 131.4 Real Estate Company 2.6 2.8 2.6 2.6 5.4 5.2 10.6 2.7 2.7 2.6 2.7 5.4 5.3 10.7 5.0 5.1 10.1 Others 1.0 1.2 1.0 1.5 2.3 2.5 4.8 1.6 1.5 1.4 2.1 3.1 3.5 6.6 2.0 3.2 5.2 152.1 160.7 179.1 169.6 312.8 348.7 661.5 168.4 176.8 178.7 154.6 345.2 333.3 678.5 330.0 360.0 690.0 Power Systems Telecommunication Systems Power & Telecommunication FPC Connector Others Electronics Business Company Automotive Products Company Total Full Year 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 3.5 8.4 7.3 15.7 5.4 6.9 12.4 0.0 1.4 3.4 1.9 1.5 5.4 6.9 2.1 4.8 4.9 0.3 6.9 5.2 12.1 3.2 5.7 9.0 1.5 0.3 1.9 0.4 1.8 2.4 4.3 0.7 (0.2) 0.6 1.3 0.5 1.9 2.4 1.7 2.1 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 1.3 2.7 2.7 5.4 2.5 1.8 4.3 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) (0.9) (0.6) (1.5) Total 5.7 4.9 9.0 5.4 10.6 14.4 25.0 7.8 9.2 9.9 5.7 17.0 15.6 32.6 12.0 16.0 28.0 Fujikura Ltd.