Presentation Transcripts
Latest Update : May 27, 2020
Back to Financial Results (FY3/2020)
Investor Meeting Presentation for FY 3/2020 held on May 8, 2020
- Cover
- Today's Agenda
- Financial Results
- Summary of Consolidated Business Results
- Summary of Consolidated Business Results for 4Q
- Net Sales, Operating Income/margin Yearly
- Net Sales, Operating Income/margin Quarterly
- 4Q Actual: Differences from the Forecast as of February
- Machined Components Yearly
- Machined Components Quarterly
- Electronic Devices & Components Yearly
- Electronic Devices & Components Quarterly
- Mitsumi Business Yearly
- Mitsumi Business Quarterly
- U-Shin Business Yearly
- U-Shin Business Quarterly
- Profit attributable to owners of the parent / EPS Yearly
- Profit attributable to owners of the parent / EPS Quarterly
- Inventory
- Net interest-bearing debt / Free cash flow
- Forecast for Fiscal Year Ending March 31, 2021
- Forecast for Business Segment
- Management Policy & Business Strategy
- Summary of FY3/20 "Net Sales Hit Record Highs"
- Key Points of FY3/21 Plan
- Image of Operating Income for FY3/21
- OP Rank within Electronic Component Sector
- Impact from the Novel Coronavirus
- Mid-term Business Plan Targets
- Machined Components Targets
- Electronic Devices and Components Targets
- Mitsumi Business Targets
- U-Shin Business Targets
- Acquisition of All Shares of ABLIC Inc.
- Focused Development Field
- Building the Strongest Domestic Association
- Ranking Changed in Eight Spears Strategy
- Our Response to the Novel Coronavirus
- Use of FCF and Shareholder Returns
- Dividend Forecast
- Forward-looking Statements
- Reference
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Moving on to the machined components business segment, we have absolutely no concerns about bearings. Although there will be some ups and downs, bearing demand will steadily grow, and we have an overwhelming competitive edge. However, if our customers suspend their operations, we won't be able to ship our bearings. That means if they operate at less than full swing, our sales will naturally decline.
We really need to place a greater focus on the aircraft-related business. Airline companies are suffering financially as fewer people take international or domestic flights, and there is a growing concern that aircraft will sell.
Just so you know, regarding our subsidiaries that offer aircraft-related products in the U.S., 25% of their operations are defense industry-related and have not been affected at all to date. Fourteen percent deal with the medical industry. For example, we are getting an increasing number of orders for X-ray tubes, so their production is up quite a bit. Civil aircraft account for about 60% of overall sales, and if we are to lose a little over 40% of that, we'll have to suffer a sales setback of about 25% to 30% overall. It will probably take about two years until demand from the aircraft industry returns to normal, but I think it's too soon to project exactly when it will recover.
Looking at China and elsewhere, despite lifestyle changes, we can see that people still have a desire to go out or travel. So once new drugs are developed and safety is guaranteed, the industry should return to normal. That's why we have to keep a keen eye on this area.
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