09 13-12 pioneer results-q1-1

392 views

Published on

Published in: Business, News & Politics
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
392
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

09 13-12 pioneer results-q1-1

  1. 1. Pioneer Corporation Business Resultsfor First Quarter of Fiscal 2013Susumu Kotani, President and CEO August 7, 2012
  2. 2. 2 Main Points of Today’s Presentation1. Business Results for First Quarter of FY2013 Sales rose and profits declined year on year in the first quarter. The primary reason is that sales and profits rose in the Car Electronics business due to recovery in car OEM sales, while sales in the optical disc business fell sharply as a result of a change in the business environment.2. Business Forecasts for FY2013 Although the Company forecasts continued favorable results in the Car Electronics business in the second quarter and beyond, the first-half and full-year business forecasts have been revised as follows, reflecting a review of the optical disc business plan and the impact of currency exchange: First-half — Net sales: ¥230.0 billion Operating income: ¥6.0 billion Net income: ¥1.0 billion Full-year — Net sales: ¥500.0 billion Operating income: ¥20.0 billion Net income: ¥8.5 billion
  3. 3. 3 Today’s Agenda1. Business Results for First Quarter of FY20132. Business Forecasts for FY20133. Topics Cautionary Statement with Respect to Forward-Looking StatementsStatements made in this presentation with respect to our current plans, estimates, strategies and beliefs, and other statements that are nothistorical facts are forward-looking statements about our future performance. These statements are based on management’s assumptions andbeliefs in light of the information currently available to it. We caution that a number of important risks and uncertainties could cause actual resultsto differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. It is not ourobligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We disclaim anysuch obligation. Risks and uncertainties that might affect us include, but are not limited to: (i) general economic conditions in our markets,particularly levels of consumer spending, and levels of demand in the major industrial sectors which we serve; (ii) exchange rates, particularlybetween the Japanese yen and the euro, the U.S. dollar, and other currencies in which we make significant sales or in which our assets andliabilities are denominated; (iii) our ability to continuously design and develop and win acceptance for our products in extremely competitivemarkets; (iv) our ability to successfully implement our business strategies; (v) the success of our joint ventures, alliances and other businessrelationships with third parties; (vi) our ability to access funding; (vii) our continued ability to devote sufficient resources to research anddevelopment, and capital expenditure; (viii) our ability to ensure the quality of our products; (ix) conditions in which we are able to continuouslyprocure key parts essential to our manufacturing operations; and (x) the outcome of contingencies.
  4. 4. 41. Business Results for First Quarter of FY2013
  5. 5. 5 Consolidated Results for First Quarter of FY2013 (billion yen) % to Prior FY13/1Q Prior Year Year Net Sales 111.4 98.1 113.6% 111.4 Net Sales Operating 0.6 2.0 30.7% Income 98.1 Ordinary -1.0 1.6 - Income/LossNet Income/Loss -2.8 0.3 - 55.9 Japan (yen) 48.5Average 1 US$ 80.20 81.74 -1.9%Currency Rate 1 Euro 102.91 117.40 -14.1% (yen) Operating IncomeNet Income per Overseas -8.60 0.91 -9.51 55.5 Share 49.7 ROE -13.8% 1.4% -15.2% 2.0Book-value per 0.6 236.17 256.30 -20.13 Share FY12/1Q FY13/1Q ROA -3.5% 0.4% -3.9%
  6. 6. 6 Operating Income Structure Breakdown (billion yen) Profit Variance due to Lower Gross Impact of Increased SG&A Increased/Decreased Profit Margin Currency Net Sales Exchange Car Electronics Home Electronics & Others +2.0 +7.5 -2.7 -2.8 -1.0 -2.3 +0.6FY12/1Q FY13/1QOperating Decrease of 1.4 billion yen Operating Income Income
  7. 7. 7 Segment Comparison for the First Quarter of FY2013 111.4 (billion yen) Net Sales 98.1 9.0 Others 10.2 21.3 Home Electronics 30.4 81.0 Car Electronics 57.5 FY1 2 /1 Q FY1 3 /1 Q Operating Income/Loss FY12/1Q FY13/1Q Change Significant improvement in profitability as car OEM sales Car Electronics 1.9 5.0 +3.1 more than doubled year on year Home Electronics 0.4 -2.8 -3.1 Profitability worsened as a Others -0.5 -1.2 -0.6 result of factors including a sharp decrease in sales of Adjustments 0.3 -0.4 -0.7 optical disc business due to the absence of the special demand Total 2.0 0.6 -1.4 associated with the shift to digital terrestrial broadcasting in Japan in the first quarter ofNote : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among FY2012 segments.
  8. 8. 8 Quarterly Net sales & Operating Income: Car Electronics (billion yen) < Net Sales > OEM Ratio to Net Sales: 53% (FY12/1Q: 31%) 81.0 % to Prior Year 141% (Japan 151%, Overseas 132%) Increase Factors OEM car navigation systems and OEM car audio products Net Sales Decrease Factor Consumer-market car navigation 57.5 systems 41.0 < Operating Income > Japan Year-on-Year Increase of 3.1 billion yen 27.1 Increase Factor Higher profit due to increased net sales (+7.5 billion yen) Decrease Factors Lower gross profit margin (-2.5 billion yen), increased SG&A (-1.2 billion yen), Overseas 40.1 and impact of currency exchange (-0.6 30.4 billion yen) Operating Income 5.0 1.9 Main products are: Car navigation systems, Car stereos, Car AV systems, and FY12/1Q FY13/1Q Car speakers.Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.
  9. 9. 9 Quarterly Net sales & Operating Income/Loss: Home Electronics (billion yen) < Net Sales > Net Sales 30.4 % to Prior Year 70% (Japan 56%, Overseas 84%) Increase Factors AV receivers and AV systems Decrease Factors Optical disc drive-related products, and equipment for cable-TV systems Japan 21.3 15.5 < Operating Income/Loss > 8.7 Year-on-Year Worsening of 3.1 billion yen Decrease Factors Lower profit due to decreased net sales (-1.2 billion yen), lower gross Overseas profit margin (-0.9 billion yen), 15.0 increased SG&A (-0.6 billion yen), 12.6 and impact of currency exchange Operating (-0.4 billion yen) Income/Loss 0.4 FY12/1Q FY13/1Q -2.8 Main products are: Audio systems, Audio components, DJ equipment, Equipment for cable-TV systems, Blu-ray Disc players, Blu- ray Disc drives, DVD players, DVD drives, and AV accessories.Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.
  10. 10. 10 Quarterly Net sales & Operating Loss: Others < Net Sales > % to Prior Year 88% (Japan 105%, Overseas 65%) (billion yen) Increase Factor Map software Net Sales Decrease Factors Factory automation systems, and electronic devices and parts 10.2 9.0 < Operating Loss > Japan Year-on-Year Worsening of 0.6 billion yen 5.9 Increase Factor Decreased SG&A (+0.1 billion yen) 6.2 Decrease Factors Lower profit due to decreased net sales (-0.2 billion yen), and lower gross profit margin (-0.5 billion yen) Overseas 4.3 Operating 2.8 Main products and services are: Loss Factory automation systems, Speaker units, Electronic devices and parts, Organic light-emitting diode displays, -0.5 -1.2 Telephones, Business-use AV systems, Map software, and FY12/1Q FY13/1Q Licensing of patents related to laser optical disc technologies.Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.
  11. 11. 11 Quarterly Net Sales by Geographic Segment (billion yen)80 Japan 30 North America FY13/1Q compared to prior year FY13/1Q compared to prior year 115% Yen basis: 166%60 Local currency basis: 170% Increase Factors 20 OEM car navigation systems, Increase Factors OEM car audio products, and OEM car audio products, OEM40 electronic devices and parts car navigation systems, and AV receivers Decrease Factors 21.7 55.9 Optical disc drive-related products, 10 48.5 and consumer-market car Decrease Factor20 13.0 Optical disc drive-related products navigation systems 0 0 FY12/1Q FY13/1Q FY12/1Q FY13/1Q30 30 Europe Other Areas FY13/1Q compared to prior year FY13/1Q compared to prior year Yen basis: 96% Yen basis: 91% Local currency basis: 108% Local currency basis: 96%20 20 Increase Factors Increase Factor AV systems, AV receivers and OEM car audio products OEM car audio products 25.6 Decrease Factors Decrease Factors 23.3 10 Optical disc drive-related products,10 Consumer-market car navigation and electronic devices and parts systems, and consumer-market car audio products 11.1 10.6 0 0 FY12/1Q FY13/1Q FY12/1Q FY13/1Q
  12. 12. 12First Quarter of FY2013 : Summary of Consolidated Statements of Cash Flows FY2013 1Q FY2012 1Q (billion yen) Income (loss) before income taxes -1.4 1.9 Cash Flows f rom Operating Activ ities and minority interests Cash Flows f rom Inv esting Activ ities Depreciation and amortization 6.0 6.2 19.3 Free Cash Flows Increase in accrued pension and 0.6 0.3 severance costs Interest expenses 0.6 0.8 Loss (gain) on sales and disposal of -0.1 0.1 12.7 15.7 noncurrent assets Trade receivables 9.0 2.8 18.2 14.0 Inventories -11.2 -8.7 7.8 Trade payables -3.9 -1.5 5.3 -7.2 Accrued expenses -3.2 -5.0 Others 0.3 -4.2 -4.6 -5.5 -3.8 -7.8 -3.2 -9.7 -8.5Cash flows from operating activities -3.2 -7.2Cash flows from investing activities -9.7 -4.6Cash flows from financing activities -0.5 -0.7Foreign currency translation adjustments on cash and cash equivalents -1.4 -0.3Free cash flows -12.8 -11.8 -11.8 -12.3 -12.8Net increase/decrease in cash andcash equivalents -14.7 -12.8Balance of cash and cash equivalents FY11/4Q FY12/1Q FY12/2Q FY12/3Q FY12/4Q FY13/1Q 31.2 34.7Net cash balance -57.4 -52.5
  13. 13. 13 First Quarter of FY2013: Inventories (billion yen) 75.0 67.4 66.9 64.1 63.9 (turnover days) 62 61 57 50 50June/11 Sep./11 Dec./11 Mar./12 June/12
  14. 14. 142. Business Forecasts for FY2013
  15. 15. 15 Consolidated Business Forecasts for FY2013 (billion yen) First Half Full Year Revised Prior-year Previous Revised Prior-year Previous Forecasts Results Forecasts Forecasts Results Forecasts (May 10, 2012) (May 10, 2012) Net Sales 230.0 213.7 245.5 500.0 436.8 525.0 Operating Income 6.0 7.0 7.5 20.0 12.5 24.0 Ordinary income 4.0 5.1 5.5 16.0 9.9 20.0 Net Income 1.0 1.5 2.5 8.5 3.7 10.0 (yen) (yen) Full Year Full Year Revised Prior-year Previous Revised Prior-year Forecasts Results Forecasts Forecasts Results (May 10, 2012) Net Income 1 US$ 77 79.08 80 per Share 26.47 11.43 Currency Rate ROE 9.9% 4.3% 1 Euro 95 108.98 105 Book-valueNote : per Share 271.28 261.98In case of 1 yen appreciation against US$ and Euro, 9months impact on:Net sales: US$: - 2,230 million yen / Euro: - 430 million yen;Operating income: US$: 160 million yen / Euro: - 270 million yen. ROA 2.7% 1.2%
  16. 16. 16 Revision of Business Forecasts for FY2013 (Full Year) (billion yen)《Net Sales》 Previous Impact of Review of Revised Currency Optical Disc Total Forecasts Exchange Business Forecasts Car Electronics 334.0 -6.5 0 -6.5 327.5 Home Electronics 141.5 -4.0 -14.0 -18.0 123.5 Others 49.5 -0.5 0 -0.5 49.0 Adjustment 0 0 0 0 0 Total 525.0 -11.0 -14.0 -25.0 500.0《Operating Income》 Impact of Review of Previous Revised Currency Optical Disc Total Forecasts Forecasts Exchange Business Car Electronics 19.0 -1.0 0 -1.0 18.0 Home Electronics 4.5 -1.0 -2.0 -3.0 1.5 Others 0 0 0 0 0 Adjustment 0.5 0 0 0 0.5 Total 24.0 -2.0 -2.0 -4.0 20.0
  17. 17. 17 Forecasts for FY2013: Car Electronics (billion yen) < Net Sales > OEM Ratio to Net Sales: 50% (FY12: 43%) % to Prior Year 121% (Japan 117%, Overseas 125%) 334.0 327.5 Increase Factors OEM car navigation systems, OEM car audio products, and consumer-market car audio products Net Sales 270.8 % to Prev. Forecasts 98% (Japan 100%, Overseas 96%) Decrease Factors Impact of currency exchange (-6.5 billion yen) 160.0 160.0 < Operating Income > Japan Year-on-Year Increase of 7.7 billion yen 136.4 Increase Factors Higher profit due to increased net sales (+13.0 billion yen), and improvement of gross profit margin (+2.9 billion yen) Operating Decrease Factor Increased SG&A (-8.2billion yen)Overseas Income 134.3 % to Prev. Forecasts Decrease of 1.0 billion yen 174.0 19.0 18.0 167.5 Decrease Factor Impact of currency exchange (-1.0 billion yen) 10.3 < Shipment to Consumer Market > (thousand units) FY12 FY13 * * No change from Forecasts original forecast FY12 FY13 FY13 Results Previous Revised Car navigation systems 940 960 Forecasts Forecasts Car CD Players 6,980 8,040Note : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.
  18. 18. 18 Forecasts for FY2013: Home Electronics < Net Sales > (billion yen) % to Prior Year 100% (Japan 79%, Overseas 119%) Increase Factors Home AV products, and DJ equipment Net Sales 141.5 Decrease Factor Optical disc drive-related products 123.1 123.5 % to Prev. Forecasts 87% (Japan 77%, Overseas 95%) Decrease Factors Impact of currency exchange (-4.0 billion yen), and optical disc drive- 60.0 46.0 related products (-14.0 billion yen) Japan 58.1 < Operating Income > Year-on-Year Decrease of 2.1 billion yen Overseas Increase Factor Higher profit due to increased net sales 64.9 Operating 81.5 (+5.2 billion yen) 77.5 Income Decrease Factors Increased SG&A (-7.3 billion yen) 4.5 vs. Prev. Forecasts Decrease of 3.0 billion yen 3.6 1.5 Decrease Factors Impact of currency exchange (-1.0 billion yen), and lower profit due FY12 FY13 FY13 to decreased net sales (-2.0 billion yen) Results Previous Revised Forecasts ForecastsNote : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.
  19. 19. 19 Forecasts for FY2013: Others < Net Sales > (billion yen) % to Prior Year 114% (Japan 106%, Overseas 129%) Increase Factors Parts business in Brazil, factory automation systems, and cycle navigation systems Net Sales 49.5 49.0 Decrease Factor Licensing of patents 42.9 % to Prev. Forecasts 99% (Japan 100%, Overseas 99%) Decrease Factor Impact of currency exchange (-0.5 billion yen) 29.0 29.0 Japan 27.4 < Operating Income/Loss > Year-on-Year Increase of 0.3 billion yen Overseas Increase Factors Electronic devices, parts business in 20.5 20.0 Brazil, and factory automation systems 15.5 Operating Loss 0 0 Decrease Factors Licensing of patents vs. Prev. Forecasts No change FY12 -0.3 FY13 FY13 Results Previous Revised Forecasts ForecastsNote : Operating income by segment shown in this presentation represents figures prior to elimination of transactions among segments.
  20. 20. 20 Forecasts for FY2013: Net Sales by Geographic Segment (billion yen) Japan North America300 150 FY13 compared to prior year FY13 compared to prior year 106% Yen basis: 132% Local currency basis: 134%200 Increase Factors 100 OEM car navigation systems, and Increase Factors Home AV products OEM car audio products, and 235.0 OEM car navigation systems 222.0 Decrease Factors100 50 Optical disc drive-related products, 88.5 Decrease Factor and consumer-market car 67.3 Licensing of Patents navigation systems 0 0 FY12 FY13 FY12 FY13 Results Revised Results Revised Forecasts Forecasts150 150 Europe FY13 compared to prior year Other Areas FY13 compared to prior year Yen basis: 107% Yen basis: 126% Local currency basis: 122% Local currency basis: 127%100 100 Increase Factors Increase Factors Home AV products, DJ equipment, Consumer-market car audio and OEM car audio products 122.5 products, and parts business in 50 50 97.7 Brazil Decrease Factor N/A 49.8 54.0 Decrease Factor Optical disc drive-related products 0 0 FY12 FY13 FY12 FY13 Results Revised Results Revised Forecasts Forecasts
  21. 21. 21 Forecasts for FY2013:Inventories, R&D Expenses, Capital Expenditures, Depreciation & Amortization (billion yen)Inventories R&D Expenses 9.8 76 (turnover days) (% to net sales) 7.9 7.6 7.2 8.2 47 50 43 42 84.9 66.9 54.8 55.1 59.6 63.0 34.6 38.0 36.0 33.0 (7.9) FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Results Results Results Results Revised Results Results Results Results Revised Forecasts Forecasts (Three-month result)Capital Expenditures Depreciation and Amortization 45.8 36.0 43.2 39.3 29.8 28.0 23.8 24.8 24.6 22.1 (9.1) (6.0) FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Results Results Results Results Revised Results Results Results Results Revised Forecasts Forecasts (Three-month result) (Three-month result)
  22. 22. 22 Forecasts for FY2013: Cash Flows and Financial Data【Cash Flows】 (billion yen) FY13 FY10 FY11 FY12 Revised Results Results Results Forecasts Cash flows from operating activities 8.0 37.5 18.2 43.0 Cash flows from investing activities -8.4 3.9 -21.8 -35.5 Cash flows from financing activities 21.8 -74.2 1.7 -7.0 Free cash flows -0.5 41.3 -3.6 7.5【Financial Data】 FY13 FY11 FY11 FY12 Revised Results Results Results Forecasts Equity 90.7 88.5 89.0 92.0 Equity Ratio (%) 22% 27% 26% 28% Net Debt 73.8 40.3 43.6 36.5 D/E Ratio (times) 1.9 1.0 1.1 0.9 Cash and Deposits 90.2 47.6 46.0 45.0 Notes: 1. “Cash flows from investing activities” and “Cash and Deposits” include time deposit over three months. 2. D/E Ratio=Debt ÷ (Equity – Minority Interests)
  23. 23. 233. Topics
  24. 24. 24 Car Navigation Strategy (Including Smartphone-link Models) Pioneer recognizes smartphone-link car navigation as an opportunity to broaden demand for car navigation systems. Pioneer foresaw the expansion of smartphone-link car navigation and has already launched such products into the market. Pioneer provides an extensive product lineup that meets a variety of user needs (from smartphone-link models to cutting-edge models equipped with AR HUD units). Information Product Business Network For Consumer- Image Photos Connection category For OEM Market Support Line System - installation ○ Dealer Option HDD "Cyber Navi" model ○ Dealer Option Memory "Raku Navi" model ○ PND "Air Navi" - ○ Display Line audio Appli Unit installation ○Smartphone-link models Peripheral Navi Cradle - ○

×