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FY2014 Financial Results
Fujikura Ltd.
May 8, 2015
Ⅰ．Strategies for FY2015 - the last year
of the 2015 Mid-term Business Plan
Yoichi Nagahama, President & C.E.O.
Ⅱ．FY2014 Financial results
Hideo Shiwa, Senior Vice President & Member of the Board
1
Ⅰ．Strategies for FY2015 - the last year
of 2015 Mid-term Business Plan
The last year to manifest a successful
outcome of measures in the 2015 Mid-term
Business Plan
1. Review of FY2014
2. Projection of FY2015
3. Strategies for FY2015
4. Comparison between FY2015 Projection vs
2015 Mid-term Goal
5. Changes of Business Portfolio
6. Toward Next Mid-term Business Plan
2
1. Review of FY2014 (1/2)
(１)Results
FY2013
(Unit:JPY in Billion)
Net Sales
Operating Income
Operating Income Margin
Ordinary Income
Net Income
Net Income per Share(JPY)
FY2014
Projection
Feb.2, 2015
FY2014
Increase and
Decrease
590.9
650.0
661.5
+70.5
20.3
25.0
25.0
+4.7
3.4%
3.8%
3.8%
+0.4
13.8
21.0
21.0
+7.2
3.3
11.0
12.2
+8.8
9.99
33.89
37.93
+27.94
Owing to a substantial improvement of Electronics Business,
・ Net sales and net income increased on a YoY basis.
・ They are in line with the projection on Feb. 2, 2015.
3
1. Review of FY2014 (2/2)
(２)Strategic policies
Items
1.Structural
Reform
Outlines
 Consolidation and improvement of production sites to
adjust to environmental changes of the domestic market
 Cultivating focus and deep of business
2.Recovery of
Electronics
Business
 Improving productivity and profitability
 Return to be a major supplier to our major customers
3.Accerelating
Globalization
 Globalization of Infrastructure business
 Expansion of European production sites of Automotive
products
4.Paving the
way to new
business areas
 Increasing inquiries from customers regarding fiber
laser and AOC
 Responding clients' request regarding superconductor
and medical devices
4
2. Projection of FY2015
Net Sales
Operating Income
Infrastructure
Optical Fiber
Electronics
Automotive
FY2015
Net Sales
680.0 Billion
Projection Operating Income 30.0 Billion
5
3. Strategies for FY2015
Strategic policies
Items
Outlines
1.Accerelating
Globalization
 Infrastructure business's overseas expansion
(Brazil and Myanmar)
2.More improvement
of profitability
 Following the growth of our major customers
(Electronics Business and Automotive Products)
3.Paving the
way to new
business areas
 Setting up mass production system and continuing
R&D and others
(Fiber Laser, AOC, Superconductor
and Medical devices)
4.Structural
Reform
 Structural reform of Infrastructure business
 Focus and deep of business
6
4. Comparison between 2015 Projection vs 2015 Mid-term Goal
In-house companies
2015 Mid-term Goal
(Unit：JPY in billlion,%)
Net Sales OP Margin
Paving the Way to New Business Areas
190.0
145.0
335.0
145.0
110.0
10.0
4.0
-
Total
650.0
Infrasructure business
Optical Fiber business
Power & Telecommunication
Electronics Business
Automotive Products
Real Estates
Others
※1
FY2015 Projection
Net Sales
OP Mrgin
5.4%
6.0%
5.5%
50.0%
-25.0%
-
216.6
150.0
366.6
147.2
147.5
10.6
8.0
3.5%
5.3%
4.8%
48.4%
-37.6%
6.3%
680.0
4.4%
※1 Only Electronics Business's Mid-term Goal was revised due to the Thai flood. The original plan was 190.0bn 6.8%
If the New Business Area* is excluded in 2015
Mid-term goal
* It was not included in the 2015
672.0
4.9%
Mid-term Business Plan
7
5. Change of Business Portfolio
≪FY2005≫
≪FY2010≫
≪FY2015 Projection≫
503.0bn
521.8bn
680.0bn
Others
Automotive
Electronics
39.3bn
16.8bn
Infrastructure
Optical Fiber
30.0bn
Others
Automotive
Power &
Telecommunication
system
Electronics
More than half of operating
Income was earned by
Electronics Business.
Due to intensified
competition, Electronics
Business was minus.
The portfolio is
becoming well- balanced.
8
6. Toward Next Mid-term Business Plan
2020 Mid-term Business Plan
 We will accelerate metabolism and aim at a highly
profitable company.
2015 Mid-term Business Plan is a milestone to
become a highly profitable company.
2015 Mid-term Business Plan
FY2015
Mid-term Business Goal
FY2011
Start of 2015
Mid-term Business Plan
 2015 Mid-term Business Plan is
making foundation
to change our company.
9
Ⅱ. FY2014 Financial Results
Contents
1. FY2014 Financial Results and FY2015 Projection
2. Information by Segment
3. Shareholder Return
11
１．FY2014 Financial results and FY2015 Projection
12
FY2014 Financial Results
（Unit：JPY in Billion）
FY2013
Net Sales
FY2014
Increase and Decrease
590.9
661.5
70.5
20.3
25.0
4.7
3.4
3.8
0.4
(2.1)
(0.3)
1.7
13.8
21.0
7.2
3.3
12.2
8.8
Net Income per Share
（JPY）
9.99
37.93
27.94
Dividend per share （JPY）
6.00
7.00
－
100.17
109.76
－
758
766
－
Operating Income
（単位：億円）
Operating
Income Margin
（%）
Equity Method Income
(Loss)
Ordinary Income (Loss)
Net Income (Loss)
Exchange Rate（JPY／USD）
CU Base（'000JPY／ton）
※
※ Because of the purchase of own shares in this fiscal year, the number of weighted average shares has become 321 million.
Net income per share is calculated according to this number.
13
Summary of FY2014 Business Results
 FY2014, net sales increased on a YoY basis owing to net sales growth of
electronics and automotive products business and effects of depreciation of
yen.
 Accordingly, operating income, ordinary income and net income increased
on a YoY bases because of strong demands related to the Electronics
Business Company including FPC and others.
14
FY2014 Net Sales by Factor (YoY basis)
Net Sales
（Unit：JPY in Billion）
Effects of JPY
depreciation
Electronics
Business
Automotive
Products Business
+12.7
Others
+5.9
+26.7
+25.3
70.5 higher than FY2013
15
FY2014 Operating Income by Factor (YoY basis)
Operating Income
 Profitability of the electronics business has been drastically improved.
 Effects of JPY depreciation and structural reform covered the negative impacts of
intensifying competition at home and abroad, but up-front investments for the new
businesses affected profits
 These factors resulted in increase of operating income by JPY4.7bn on a YoY basis.
（Unit：JPY in Billion）
Recovery of
Electronics
Business
+9.3
Up-front
Net
investments for
Changes Effects of JPY Structural
the new
reform
deprecation
businesses
(6.9)
+2.0
+3.1
(2.8)
4.7 higher than FY2013
16
FY2014 Extraordinary Profit and Loss
Extraordinary Profit and Loss
（Unit：JPY in Billion）
FY2013
FY2014
Operating Income
20.3
25.0
Equity Method
Income
(2.1)
(0.3)
Ordinary Income
13.8
21.0
Extraordinary Gains
7.7
2.2
Extraordinary Losses
8.6
3.0
Income before Income
Taxes and Minority
Interests
12.9
20.2
Total Income Taxes
9.0
6.9
Minority interests in
Income
0.5
1.1
3.3
12.2
Net Income
Cost of structural reform of
domestic and overseas sites
JPY1.7 billion
Tax burden was normalized
17
Consolidated B/S（１）
（Unit：JPY 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, 2014
As of March
31, 2015
Increase and
decrease
537.2
577.5
40.2
267.4
294.6
27.2
39.9
35.7
(4.1)
140.2
157.0
16.7
64.8
78.5
13.6
269.8
282.8
13.0
179.8
185.9
6.0
15.9
14.4
(1.4)
195.7
200.3
4.6
74.0
82.5
8.4
Effects of exchange
rate+JPY32.9bn
March,2014 $1=JPY102.9
March,2015 $1=JPY120.2
Effects of net sales of
electronics business growth
aside from effects of
depreciation of yen
Revaluation of securities
+JPY6.2bn
18
Consolidated B/S（２）
（Unit：JPY in Billion）
Total
（Treasury Stock）
〈Liability〉
Notes and Account
Payable
Interest-bearing Debt
Other Current
Liability
〈Net Cash〉
Shareholder's Equity
（Treasury Stock）
Total Valuation and
Translation
Adjustment
Minority interests
Increase
and
decrease
As of March
31, 2014
As of March
31, 2015
537.2
577.5
40.2
（11.0）
（19.7）
（8.7）
330.0
343.0
13.0
77.7
78.6
0.9
192.4
205.1
12.6
37.5
37.0
(0.4)
207.2
234.5
27.2
185.4
（11.0）
187.8
（19.7）
2.4
（8.7）
7.6
30.6
23.0
14.1
15.9
1.7
Effects of growth of working
capital caused by the increase of
net sales and the JPY
depreciation.
Repurchase of own shares
JPY(8.7) bn
Increase of foreign currency
translation adjustment +JPY18.2 bn
Valuation difference on available for
sales securities +JPY4.4bn
19
FY2015 Projection
（Unit：JPY in Billions）
FY2015
First Half
(Projection)
FY2014
Net Sales
Increase
and
Decrease
FY2015
(Projection)
661.5
330.0
680.0
18.5
25.0
13.0
30.0
5.0
3.8
3.9
4.4
0.6
(0.3)
0.2
0.9
1.2
Ordinary Income
21.0
10.0
25.0
4.0
Net Income
12.2
6.0
15.0
2.8
Net Income per Share（JY）
37.93
19.41
48.52
10.59
Dividend per Share（JPY）
7.00
4.00
8.00
－
109.76
115.00
115.00
－
766
700
700
－
Operating Income
Operating Income Margin
（%）
Equity Method Income
(Loss)
Exchange Rate（JPY／USD）
Cu Base（'000JPY／ton）
20
FY2015 Projection
 Net sales is expected to be JPY680.0 billion that is JPY18.5 billion higher than
that of the previous fiscal year owing to the increase of net sales of Electronics
Business including FPC, Automotive Products Business and others.
 As for incomes, operating income is expected to be JPY30.0 billion, ordinary
income to be JPY 25.0 billion and net income JPY15.0 billion.
21
FY2015 Net Sales by Factor (YoY basis)
Net Sales
（Unit：JPY in Billion）
Automotive
Products
Electronics
Business
Others
+3.4
+8.3
+6.8
18.5 higher than FY2014
22
FY2015 Operating Income by Factor (YoY basis)
Operating Income
（Unit：JPY in Billion)
Power &
Telecommunication
System
+1.3
Electronics
Business
Automotive
Products
+2.9
+0.8
5.0 higher than FY2014
23
2. By Segment
24
Financial Records and Projection by Segment
（Unit：JPY in Billion）
Net Sales
Segment
Power &
Telecommunication
System Company
Electronics Business
Company
Automotive
Products
Company
Real Estate Business
Company
Others
Total
Operating Income & Margin
FY2013
348.0
107.4
1st Half FY2015
2015
FY2014
Projection
Projection
366.2
140.4
177.5
74.4
366.6
147.2
119.6
139.2
69.4
147.5
11.2
10.6
5.4
10.6
4.8
4.8
3.3
8.0
590.9
661.5
330.0
680.0
FY2013
1st Half FY2015
FY2014
2015
Projection
Projection
15.3
11.7
6.3
13.0
4.4%
3.2%
3.6%
3.5%
(3.4)
6.9
3.3
7.7
(3.1%)
5.0%
4.5%
5.3%
4.7
4.2
2.3
7.1
3.9%
3.1%
3.4%
4.8%
5.4
5.1
2.7
5.2
48.4%
47.9%
50.1%
48.4%
(1.7)
(3.0)
(1.7)
(3.0)
20.3
25.0
13.0
30.0
3.4%
3.8%
3.9%
4.4%
※According to the organizational changes on April 1, 2015, the figures in FY2013 and FY2014 reflect the new classification.
25
Power & Telecommunication Systems Company
 FY2014, net sales increased owing to the strong demands in overseas markets and the depreciation of yen,
but operating income decreased. This was due to intensifying competition, change in product mix, and initial
costs of the new businesses.
 Net sales in FY2015 will be the same level as FY2014, but operating income will be slightly increased due to
JPY depreciation.
（Unit：JPY in Billion）
Net sales & Operating Income Margin
Infrastructure Unit
 In FY2014, Net sales increased mainly in overseas
engineering business.
 In FY2015, net sales is expected to be decrease due
to the fall of copper price and changes of product
mix.
348.0
366.2
366.6
Optical Fiber Unit
 In FY2014, net sales increased because of JPY
depreciation.
 In FY2015, net sales is also expected to increase
because of JPY depreciation.
26
Electronics Business Company
 In FY2014, both net sales and operating income increased on a YoY bases, because there was strong
demands for products including FPC and Connector used for smart phones.
 In 2015, both net sales and net income will be expected to increase owing to increased demands for products
for automobiles in addition to solid demands for smartphones.
（Unit：JPY in Billion）
FPC
Net sales & Operating Income Margin
FPC
Connector
Others
OP%
147.2
140.4
 In 2014, net sales was drastically increased on a YoY basis,
as we returned to be a major supplier for our major
customer for smartphones.
 In FY2015, net sales is expected to increase owing to
increased demands of new products for automobile and
medical devices in addition to solid demands for
smartphones.
Connector
107.4
 In FY2014, net sales increased on a YoY basis because of the
strong demands for smartphones.
 In FY2015, net sales is expected to increase because of the
increase of demands for automobiles and industrial devices
in addition to smartphones.
78.3
70.8
40.9
Others
29.8
32.5
36.7
37.0
▲3.1％
FY2013
FY2014
33.7
5.0％
35.2
5.3％
 In FY2014, net sales for electronic wires and thermal
products business increased on a YoY basis, but changes in
product mix mainly for HDD components made the net
sales of this segment remain in the same level.
 In FY2015, net sales is expected to decrease due to changes
of product mix etc.
FY2015 Est.
27
Automotive Products Company
 In FY2014, net sakes increased on a YoY basis because of the strong overseas demands, but operating
income decreased. It was affected by both the greater initial cost for the new vehicle models than expected
and the deceased production volumes of models for one of the customers.
 In FY2015, net sales is expected to increase by supplying more products to new vehicle models in overseas,
and operating income is also expected to increase by improvement of profitability.
（Unit：JPY in Billion）
Net sales & Operating Income Margin
Automotive
 In 2014, net sales increased on a YoY basis because
of the expansion of overseas demands.
 In 2015, net sales is expected to increase owing to
supplying more products to new vehicle models.
28
Real Estate Business Company
 Revenues of leasing real estate properties continue to contribute to
operating income.
（Unit：JPY in Billion）
Net sales & Operating Income Margin
Real Estate
■Stable rental revenues are continuously
expected.
(参考値）
29
CAPEX and Depreciation Cost
（Unit：JPY in Billion）
FY2013
FY2015
Projection
FY2014
CAPEX
21.8
24.6
29.0
（for manufacturing business）
21.6
24.4
28.4
0.2
0.1
0.6
Depreciation Cost
26.3
28.2
29.0
（for manufacturing business）
24.1
26.2
27.3
2.1
1.9
1.7
（for real estate business）
（for real estate business）
Note: The above figures include leasing costs.
30
Interest-bearing Debts, Net Financial Profit and Free Cash Flow
（Unit：JPY in Billion）
FY2013
1st Half
Interest-bearing Debts
Net Financial
Profit/Loss
Free Cash Flow
2nd
Half
FY2014
Fiscal
Year
1st Half
2nd Half
Fiscal
Year
206.2
192.4
192.4
198.3
205.1
205.1
(1.0)
(1.0)
(2.0)
(0.8)
(0.8)
(1.6)
(15.2)
20.6
5.4
(11.0)
8.6
(2.4)
Free Cash Flow=Cash Flow by Operating Activities + Interest Paid + Investing Cash Flow
31
3. Shareholder Return
32
Shareholder Return
Dividend per Share
 FY2013
JPY6.0/share
 FY2014 1H
JPY3.5/share
 FY2014 2H：JPY3.5/share（Year Total JPY7.0/share）
 FY2015 Dividend pay out plan：JPY8.0/share
（1H JPY4.0/share, 2H JPY4.0/share）
 Share Repurchase
 FY2013 Total: 14.7million shares/JPY6.0bn
 FY2014 Total: 18.2million shares/JPY8.7bn
33
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]
29
<FY2014 Appendix>
Net Sales and Operating Income by segment
Net Sales record and estimation by segment
Unit: JPY in Billion
FY2013
FY2014
FY2015 Est
1Q
2Q
3Q
4Q
１H
２H
Full
Year
1Q
2Q
3Q
4Q
１H
２H
Full
Year
１H
２H
Full
Year
Infrastructure Unit
48.8
53.3
56.4
57.2
102.1
113.6
215.7
52.9
56.6
58.6
53.7
109.5
112.3
221.8
103.3
113.3
216.6
Optical Fiber Unit
32.2
33.0
34.2
33.0
65.2
67.2
132.3
33.0
33.6
37.7
40.0
66.6
77.7
144.3
74.2
75.8
150.0
Power & Telecommunication
Systems Company
81.0
86.3
90.6
90.1
167.3
180.7
348.0
85.8
90.4
96.4
93.7
176.1
190.1
366.2
177.5
189.1
366.6
FPC
8.2
11.4
12.2
9.1
19.6
21.3
40.9
10.8
17.3
23.2
19.5
28.1
42.7
70.8
40.6
37.6
78.3
Connector
6.9
8.2
8.3
6.5
15.1
14.7
29.8
7.1
8.1
9.8
7.5
15.2
17.3
32.5
15.8
17.9
33.7
Others
7.9
9.2
10.3
9.3
17.1
19.6
36.7
10.0
8.9
9.0
9.1
18.9
18.1
37.0
17.9
17.3
35.2
22.9
28.8
30.6
25.1
51.7
55.7
107.4
27.8
34.5
42.0
36.2
62.2
78.2
140.4
74.4
72.9
147.2
28.1
27.4
31.9
32.3
55.4
64.2
119.6
34.5
32.3
36.9
35.5
66.8
72.4
139.2
69.4
78.1
147.5
Real Estate Company
2.7
2.9
2.8
2.8
5.6
5.6
11.2
2.6
2.8
2.6
2.6
5.4
5.2
10.6
5.4
5.2
10.6
Others
1.2
1.2
0.9
1.5
2.4
2.3
4.8
1.0
1.2
1.0
1.5
2.3
2.5
4.8
3.3
4.7
8.0
136.2 146.3 157.1 151.4
282.5
308.4
590.9
152.1 160.7 179.1 169.6
312.8
348.7
661.5
330.0
350.0
680.0
Electronics Business
Company
Automotive Products
Company
Total
Operating Income record and estimation by segment
Power & Telecommunication
Systems Company
2.9
3.9
4.7
3.9
6.8
8.6
15.3
3.3
2.4
3.3
2.7
5.7
6.0
11.7
6.3
6.7
13.0
(2.0)
(0.1)
(0.3)
(1.2)
(1.9)
(1.5)
(3.4)
0.1
1.5
3.4
2.0
1.5
5.4
6.9
3.3
4.4
7.7
1.1
0.7
2.0
0.9
1.8
2.9
4.7
1.4
0.4
1.9
0.5
1.8
2.4
4.2
2.3
4.8
7.1
Real Estate Company
1.4
1.4
1.2
1.4
2.8
2.7
5.4
1.3
1.3
1.2
1.2
2.7
2.4
5.1
2.7
2.4
5.2
Others
(0.5)
(0.3)
(0.4)
(0.5)
(0.8)
(0.9)
(1.7)
(0.5)
(0.6)
(0.9)
(1.0)
(1.1)
(1.9)
(3.0)
(1.7)
(1.3)
(3.0)
Total
2.8
5.8
7.2
4.5
8.6
11.7
20.3
5.7
4.9
9.0
5.4
10.6
14.4
25.0
13.0
17.0
30.0
Electronics Business
Company
Automotive Products
Company
※According to organizational changes on April 1, 2015, the figures of FY2013 and FY2014 reflect the new classification.
Fujikura Ltd.