Outline of Financial and Business Performance for the fiscal year ended December 31, 2011

Transcription

1 SIC:5943 Outline of Financial and Business Performance for the fiscal year ended December 31, th February 2012 The forecasts provided in this overview are projections based on information currently available to Noritz and are subject to risks and other uncertainties. As such they are not a guarantee of future results. 1

2 Overview of financial and business performance for the fiscal year ended December 31, 2011 Mid-term plan: V-plan 16 CONCEPT Growth of domestic water heaters and air conditioning equipment Focus on new products to drive growth in overseas and domestic markets Heating up new happiness Development and growth of overseas operations Growth of domestic new energy business Harness synergies in household system equipment and kitchen equipment to provide bottom-up progress Expansion of eco and safety markets and creation of customer value 2

3 Outline of Financial and Business Performance for the fiscal year ended December 31, 2011

4 Overview of financial and business performance for the fiscal year ended December 31, 2011 Topics for the fiscal year ended December 31, 2011 Operating conditions Adverse conditions caused by the Great East Japan Earthquake and flooding in Thailand Post-quake restoration demand, increased need for electricity and other energy conservation, focus of public attention on renewable energies Strong Japanese yen, European economic crisis and slowdown of Chinese GDP growth rate factors in a stagnant global economy Main domestic business initiatives Group company reorganization Increase sales of ECO-Jozu models Expansion of new energies business Main overseas business initiatives Strengthening of operations in inland China Management restructuring in North America Improved competitiveness through investment in new products Towards net sales of JPY200bn and Operating income of JPY10bn Establishing a sound business footing Development of growth businesses (new energies, overseas operations) Strengthening of management culture (reorganization of value chain) 3

5 Overview of financial and business performance for the fiscal year ended December 31, 2011 Consolidated performance for the fiscal year ended December 31, 2011 (FY2011) Steady progress in the mid-term plan (Billions of yen) Net sales : (+5.3% YoY) Operating income : 8.1 (+14.6% YoY) Current income : 8.7 (+17.9% YoY) Net income : 4.7 (+24.9% YoY) ROE : 5.7% ROA : 3.3% * Annual average exchange rate: JPY/USD=79.63; JPY/RMB= FY 2009 Net sales Operating income Current income Net income FY FY 2011 FY 2013 (Forecast) [Billions of yen] FY 2016 (Forecast)

6 Overview of financial and business performance for the fiscal year ended December 31, 2011 Consolidated performance for the fiscal year ended December 31, 2011 (FY2011) Segment information Domestic business Domestic: Increase in sales and profit Overseas: decrease in sales and profit [Billions of yen] (+7.2% YoY) (+23.6% YoY ) Overseas business [Billions of yen] 1 ( 13.8% YoY ) Net sales Operating income FY 2010 FY Net sales Operating income FY 2010 FY

7 Overview of financial and business performance for the fiscal year ended December 31, 2011 Consolidated performance for the fiscal year ended December 31, 2011 (FY2011) Segment information Domestic business (by business) Water heaters and air conditioning equipment Household system equipment Kitchen 0.0 equipment Other [Billions of yen] FY FY (New energies business included in water heater and air conditioning segment) Overseas business (by region) [Billions of yen] China North America Other FY FY

8 Overview of financial and business performance for the fiscal year ended December 31, 2011 Consolidated performance for the fiscal year ended December 31, 2011 (FY2011) Factors accounting for increase (decrease) in operating income Increase in Units, changes in the product mix and other factors FY 2010 Operating income Changes in raw materials costs 1.34 Material costs driven down by cost reduction efforts Increased manufacturing costs 1.60 Decrease in SG&A expenses Effect of foreign currency fluctuations [Billions of yen] FY 2011 Operating income

9 Overview of financial and business performance for the fiscal year ended December 31, 2011 Consolidated performance for the fiscal year ended December 31, 2011 (FY2011) Quarterly Quarterly net sales information [Billions of yen] Quarterly Operating income (loss) information [Billions of yen] FY 2009 FY 2010 FY FY 2009 FY 2010 FY st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter 8

10 Forecast for Financial and Business Performance For the Fiscal Year Ending December 31, 2012 (FY2012)

11 Overview of financial and business performance for the fiscal year ending December 31, 2012 External Operating Environment during the fiscal year ending December 31, 2012 [1] 1100 国内 [1,000 houses] Domestic Increasing demand for ECO-Jozu models and built-in in gas ranges Acceleration of market growth of new energies equipment 0 Number of new housing starts Number of new housing units transferred to new owners New housing starts hovering around 800,000 mark End users Increasing demand for eco/energy conservation Increasing demand for safety and peace of mind Increasing energy conservation awareness Housing industry Slight increase in new housing starts Expansion of market for existing and renovated housing Preferential treatment of energy efficient housing (Flat 35S eco, reconstruction assistance, eco-point scheme) Launch of renewable energy buyback program Gas industry condensing model standardization by 2013 北米 China Slower GDP growth denotes economic slowdown Rise in labor costs Increasing demand in inland China 中国 North America Continued housing market slump Stricter environmental regulations (NOx 20ppm) Increasing demand for condensing models 9

12 Overview of financial and business performance for the fiscal year ending December 31, 2012 External Operating Environment during the fiscal year ending December 31, 2012 [2] Quarterly demand for water heaters in 2011 Continued high demand [Rate of change over the previous year] Quarterly demand for built-in gas ranges in 2011 Improved market conditions [Rate of change over the previous year] 25.3% YoY Electric heaters and heat pumps IH cooking heaters Built-in gas ranges 8.9%YoY Gas and kerosene water heaters 10.2%YoY 7.6%YoY 16.6%YoY 7.0%YoY 1.9%YoY 2.8%YoY 2.3%YoY 3.5%YoY 2011.Q Q Q Q4 2.3%YoY Q 2011.Q Q Q4 0.3%YoY 17.1%YoY 20.9%YoY 22.0%YoY -20% 13.6%YoY -25% 10

13 Overview of financial and business performance for the fiscal year ending December 31, 2012 External Operating Environment during the fiscal year ending December 31, 2012 [3] 4, Demand for domestic water heating products Demand for gas and kerosene water heaters to decrease by 2.1% on the year 3,771 3,570 3,644 3,670 2,000 Demand for built-in gas ranges Demand for built-in in gas ranges to increase by 5.9% on the year 1,777 1,795 1,829 1,878 3,050 ( 2.1% YoY) 1,200 (+5.9% YoY) Electric heaters and heat pumps Gas and kerosene heaters IH cooking heaters Built-in gas ranges (forecastf t 2013 ( forecas t) [1,000 units] ( forecas t) 2013 ( [1,000 units] Single burner models not included 11

14 Overview of financial and business performance for the fiscal year ending December 31, 2012 Forecast for consolidated management for the fiscal year ending December 31, 2012 (FY2012) Laying the foundations for reaching an operating income of JPY10 billion (Billions of yen) Net sales : (+2.0% YoY) Operating income : 9.0 (+9.9% YoY) Current income : 9.6 (+10.3% YoY) Net income : 5.4 (+12.5% YoY) ROE : 6.2% ROA : 3.5% * Assumed annual average exchange rate: JPY/USD=78.00; JPY/RMB= Net sales Operating income Current income Net income FY 2010 FY 2011 FY FY 2013 [Billions of yen] FY

15 Overview of financial and business performance for the fiscal year ending December 31, 2012 Forecasts by Business Segment for the fiscal year ending December 31, 2012 (FY2012) Expansion of domestic and overseas business Domestic business Overseas business [Billions of yen] (+1.6% YoY) (+8.1% YoY) [Billions of yen] (+6.7% YoY) Profitability 0.0 Net sales Operating income FY 2010 FY 2011 FY Net sales Operating income FY 2010 FY 2011 FY 2012 (0.5) 13

16 Overview of financial and business performance for the fiscal year ending December 31, 2012 Forecast by business segment for the fiscal year ending December 31, 2012 Segment information Focus on new energies business and overseas operations Domestic business plan for each business segment Dec Water heaters and air conditioning New energy Household system equipment Gas ranges Other [Billions of yen] Dec Dec Overseas business plan for each region New energy products for 2010 included in hot water and air conditioning products 0 10 [Billions 20 of yen] China North America Other Dec Dec Dec

17 Overview of financial and business performance for the fiscal year ending December 31, 2012 Forecast of unit sales by domestic principal product for the fiscal year ending December 31, 2012 Water heaters Kerosene water heaters Gas water heaters Gas bath boilers Household equipment Vanity units Unit Kitchens Unit baths Gas ranges Tabletop gas ranges Built-in gas ranges [1,000 units] , , , FY 2010 FY 2011 FY FY 2010 FY 2011 FY FY 2010 FY 2011 FY 2012 Single burner models not included 15

18 Overview of financial and business performance for the fiscal year ending December 31, 2012 Consolidated performance for the fiscal year ending December 31, 2012 (FY2012) Factors accounting for increase (decrease) in operating income FY2011 Operating income 8.18 Changes in raw materials costs Increase in Units, changes in the product mix and other factors Material costs driven down by cost reduction efforts Increase in manufacturing costs 1.71 Increase in SG&A costs 0.50 Effect of foreign currency fluctuations 0.02 [Billions of yen] FY2012 Operating income

19 Main initiatives

20 Overview of financial and business performance for the fiscal year ending December 31, 2012 Domestic business for the fiscal year ending December 31, 2012 Water heaters Raise proportion of ECO-Jozu models to improve profitability 900 Planned proportion of ECO-Jozu models [1,000 units] % 21.5% % 25.3% % 29.5% % Aiming at standardization (+4.5pt) Strengthening of ECO- Jozu model range Launch of ECO-Jozu condensing model suitable for installation in existing apartments Integration and phasing out of GT range of ECO-Jozu models Demand for ECO-Jozu Proportion of ECO-Jozu (Noritz) Proportion of ECO-Jozu (industry) 0 FY 2010 FY 2011 FY 2012 FY % 17

21 Overview of financial and business performance for the fiscal year ending December 31, 2012 Domestic business for the fiscal year ending December 31, 2012 Built-in gas ranges Seize the opportunity presented by increased demand for gas 1,400 Unit sales of built-in in gas ranges [1,000 units] 1,206 1,255 1,139 1,059 Increase sales of leading products New range of better-looking, easier to use models : S-Blink duo, S-Blink S revor 0 Demand Unit sales FY 2010 FY 2011 FY 2012 (+6.4%) FY 2013 Strengthening of sales operations Maximizing the benefits of integration of Noritz and Harman sales operations Improvement of cooking appliance sales operations Strengthening of kitchen space sales proposal operations Reduction of fixed costs by integrating sales offices 18

22 Overview of financial and business performance for the fiscal year ending December 31, 2012 Domestic business for the fiscal year ending December 31, 2012 New energies products Accelerate development of growth areas Business plan for new energies products FY [Billions of yen] FY 2012 FY (+40.8%YoY) Concentration of efforts on photovoltaic and solar thermal water heating systems Improved R&D and production capacity Introduction of automated systems Broaden range of installation accessories Improved sales operation system Increase the number of dedicated staff Increase sales effort to industrial customers 19

23 Overview of financial and business performance for the fiscal year ending December 31, 2012 Overseas business for the fiscal year ending December 31, 2012 China Expansion of sales area Expansion of sales area Establishment of sales joint venture in Jiangsu (Nov. 2011) Increase sales of lower cost leading products Launch of new products which are more compact and which offer greater comfort and quieter operation Increased sales of added-value products and reduction of raw material costs Increase sales of products offering greater comfort and performance Increase in-house manufacture of components Shanghai Expansion 20

24 Overview of financial and business performance for the fiscal year ending December 31, 2012 Overseas business for the fiscal year ending December 31, 2012 North America Concentration of management and operational restructuring Concentration of management resources Concentration of management resources in LA headquarters and Dallas and Atlanta branches Personnel reduction through flattening and streamlining organizational structure New sales strategy for Chicago and New York areas (deployment and development of sales reps) Increase sales of new products Increase sales of condensing models Broader range of NOx 20 ppm compliant models LA Concentration Dallas Atlanta 21

25 Overview of financial and business performance for the fiscal year ending December 31, 2012 Capital investment, depreciation and R&D expenditures(fy2012) Capital investment Depreciation R&D expenditures [Billions of yen] Captal FY FY investment FY FY Deprecialtion FY FY R&D FY expenditures FY FY

26 Overview of financial and business performance for the fiscal year ending December 31, 2012 CSR and eco-projects for the fiscal year ending December 31, 2012 The annual CO2 emissions throughout the entire lifecycle of our products amounts to 1% of Japan s s total CO2 emissions. As a Ministry of the Environment-certified eco-first company, Noritz is proactively engaged in reducing CO2 emissions as part of our core business activities. Eco-First pledge (abstract) Eco-First standard Guideline Requirement We will be proactively committed to development and promotion of High-thermal-efficiency water heating products and energy saving products, aiming at reducing the CO2 emission from residential products by 200,000 ton a year by 2016 compared to that from conventional gas or kerosene products in We will be proactively committed to development of High-thermal-efficiency water heating products and energy saving products and promoting them making the most of advantage of each product. Amount of CO2 reduction compared with 2000 Amount of CO2 emission (10,000 t) *5.04 t/ year/ household - 6 (12,000 households) 7.4 (15,000 households) 2012 (plan) 10 (20,000 households) 2016 (plan) 20 (40,000 households) 2020 (plan) - Enhancing Green Promotion, we will proactively provide comprehensible and sufficient information on the environment issues of our products and services such as visualization of CO2 emission, looking at the product cycle. We are aiming at reducing the total amount of CO2 emission from our offices in Japan by at least 20% by 2016, and by at least 25% by Total amount of CO2 emission copared with 2002 Amount of CO2 emission (10,000 t) Rate of reduction 100% 3.0% 8.5% 10.0% 20.0% 25.0% 23

27 Overview of financial and business performance for the fiscal year ending December 31, 2012 Expected dividend for the fiscal year ending December 31, 2012 With Noritz celebrating the 60 th year since its founding in the year ended December 31, 2011, a commemorative 2 yen dividend is planned. Noritz N will continue to pay consistent dividends into the future. Commemorative dividend paid per share (yen) Dividends paid per share (yen) Net income per share (yen) FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY

28 Overview of financial and business performance for the fiscal year ended December 31, 2011 Business performance overview for the fiscal year ended December 31, 2011 FY 2012 Change Change Change FY 2011 FY 2011 FY FY 2011 (Year-on-year) (Year-on-year) (Year-on-year) (Billions of yen) Management plan Net sales % % % % % Domestic business % % % % % % Water heaters and air conditioning equipment % % 10.4% 24.0% 5.2% New energy equipment % % Household system equipment % % % % % % Built-in gas stoves % % % % % % Other % % % % % % Overseas business % % % % % % China North America JPY JPY % 7.1% % 24.5% % 16.9% % 41.9% % 12.3% % 21.5% RMB USD % 9.4% % 17.3% % 8.4% % 34.5% % 4.4% % 17.4% Other % % % % % % Operating income % % % % % Domestic business % % % % % Overseas business Current income % % % % % Net income % % % % % FY 2012 FY 2012 FY 2011 Year-on-year parcentage change FY 2011 Parcentage change (Year-on-year) FY 2012 FY 2011 Yearon-year FY 2011 Level vs. previous year Share FY st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter Level vs. previous year Share FY 2011 Level vs. previous year Share FY 2011 Level vs. previous year Share FY 2011 Change (Year-on-year) Domestic business: sales plan for each product segment Water heaters and air conditioning equipment Gas bath boilers % 40.9% % 40.8% % 39.5% % 42.6% % 38.9% % 42.0% Gas water heaters % 35.4% % 35.1% % 36.9% % 34.6% % 34.6% % 33.8% Kerosene water heaters % 40.7% % 40.2% % 39.7% % 42.0% % 38.4% % 40.3% Subtotal 1, % 39.0% 1, % 38.7% % 38.6% % 39.4% % 37.4% % 39.1% Household system equipment Unit baths (detached house) % 4.2% % 4.2% % 3.5% % 5.4% % 4.1% % 4.0% Unit kitchens (detached house) % 2.2% % 2.0% % 1.8% % 2.6% % 1.9% % 1.8% Vanity Units % 7.3% % 7.1% % 6.6% % 8.3% % 7.1% % 6.8% Gas stoves Built-in gas stoves % 34.4% % 34.2% % 34.7% % 35.5% % 33.7% % 33.4% Tabletop gas stoves % 5.3% % 5.1% % 4.3% % 5.6% % 4.7% % 5.2% Domestic business: demand forecast for each product segment Water heaters and air conditioning equipment Gas bath boilers 1, % 1, % % % % % Gas water heaters 1, % 1, % % % % % Kerosene water heaters % % % % % % Subtotal 3, % 3, % % % % % Household system equipment Unit baths (detached house) % % % % % % Unit kitchens (detached house) % % % % % % Washstands 1, % 1, % % % % % Gas stoves Built-in gas stoves 1, % 1, % % % % % Tabletop gas stoves 2, % 2, % % % % % Level vs. previous year (1,000 units) Share

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