Presentation Transcripts
Latest Update : Aug.26, 2022
Back to Financial Results (FY3/2023)
Investor Meeting Presentation for 1Q FY 3/2023 held on August 5, 2022
- Cover
- Today's Agenda
- Financial Results
- Summary of Consolidated Business Results for 1Q
- Net Sales, Operating Income / Margin
- 1Q Actual: Differences from the Forecast as of May
- Machined Components
- Electronic Devices & Components
- MITSUMI Business
- U-Shin Business
- Profit Attributable to Owners of the Parent / EPS
- Inventory
- Net Interest-bearing Debt / Free Cash Flow
- Forecast for Fiscal Year Ending March 31, 2023
- Forecast for Business Segment
- Business Update & Management Strategy
- Today's Points
- Today's Points (2)
- 3 spears +1
- Growth strategy
- New M&A deals
- Commencement of TOB of HONDA TSUSHIN KOGYO CO., LTD
- Acquisition of All Shares of SUMIKO TEC CO., LTD.
- Solidify the Foundation as 8 Spear by Integrating 3 Companies
- Connectors' Future with Ultra High-Speed Communications
- Image of connector-related in-vehicle products after integration
- Solidify the Foundation as 8 spear by Integrating 3 Companies
- Acquisition of All Shares of Honda Lock Mfg. Co., Ltd.
- Strengthening the access products business via integration
- Expand automotive Tier1 business based on access products
- Strengthening the Access Products Business
- Name of New Tokyo Base and Shareholders Return, etc
- Forward-looking Statements
- Reference
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Operating income for the first quarter reached 14.3 billion yen, which was about 2 billion yen more than the initial forecast of 12 billion yen. We had expected that the Shanghai lockdown would significantly affect our financial performance. The two-month-long lockdown (April and May) was longer than we had expected and is estimated to have taken a toll of around 8 billion yen. If there had been no lockdown, our operating income would have been about 22 billion yen, so considering that, the results aren't all that bad.
Although we have bearing and fan motor factories in the Shanghai area, we were able to manufacture bearings at our other locations to supply our customers and quickly get production back on track, which helped improve profits. We also saw the aircraft industry bounce back in the first quarter, so our machined components business didn't suffer that much of a decrease of profits. On the other hand, I'm sorry to say that we were unable to cover the shortfalls in fan motor production with our other locations, such as the Cambodia plant. The two-month lockdown hit us really hard, with only 20–30% of our employees being able to report to work. Despite it all, we were able to generate operating income that was higher than initially expected 12 billion yen.
As I mentioned during the investor meeting in May, our M&A activity had increased after the transition to the "With Corona" strategy, and the three deals went ahead at once, as we just announced. I'll talk about them in more detail later on. There were some deals we didn't get to make because of travel restrictions, but at least we were able to announce those three deals.
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