FURUKAWA ELECTRIC CO., LTD. Furukawa Electric Group FY2023 Financial Results and Progress of the 2022-2025Medium-term Management Plan (2025 Mid-term Plan)
May 13, 2024
Hideya Moridaira President
Koji Aoshima | Corporate Vice President and |
General Manager of the Finance & Accounting Division |
Furukawa Electric Co., Ltd.
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This presentation materials are created for the purpose of providing information on Furukawa Electric's activities for shareholders,
investors, and members of the media.
Forward-Looking Statements
Projections of future sales and earnings in these materials are "forward-looking statements." Management offers these projections in good faith and on the basis of information presently available.
Information in these statements reflects assumptions about such variables as economic trends and currency exchange rates.
Forward-looking statements incorporate known and unknown risks as well as other uncertainties that include, but are not limited to, the following items.
- Economic trends in the U.S, Europe, Japan and elsewhere in Asia, particularly with regard to consumer spending and corporate expenditures.
- Changes in exchange rates of the U.S. dollar, euro, and Asian currencies.
- Furukawa Electric Group's ability to respond to rapid advances in technology.
- Changes in assumptions involving financial and managerial matters and the operating environment.
- Current and future trade restrictions and related matters in foreign countries.
- Changes in the market value of securities held by the Furukawa Electric Group.
Due to the above factors, actual sales, earnings, and other operating results may differ significantly from forward looking statements in these materials. In addition, following the release of these materials, Furukawa Electric Group assumes no obligation to announce any revisions to forward-looking statement in these materials.
Copyrights
Furukawa Electric Co., Ltd. retains copyrights and other rights involving these materials. Copyright and otherwise reusing these materials in any way without prior consent is prohibited.
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Today's
Agenda
FY23 Financial Results and Progress of the 2025 Mid-term Plan
- FY23 financial results and FY24 forecasts
- Progress of the 2025 Mid-term Plan
- Recognition of the current situation
- Progress of priority measures
- Maximizing revenues in existing businesses
- Building a foundation for creating new businesses
- Strengthening the foundation for ESG management
- Business portfolio optimization and allocation of management resources
- Management targets (Financial targets)
Appendix
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- FY23 financial results and FY24 forecasts
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FY23 financial results highlights
- Net sales and income declined year on year, but up from previous forecasts
（JPY billion, JPY/kg, JPY/USD）
Net Sales
Operating income
Ordinary income
Net income attributable to owners of the parent
FY22 | FY23 | FY23 | YoY |
Previous | |||
1 | Results | 3 | |
Results* | forecasts*2 | change* | |
ｃ | |||
a | b | c-a | |
1,066.3 | 1,040.0 | 1,056.5 | (9.8) |
15.4 | 5.0 | 11.2 | (4.3) |
17.3 | 4.0 | 10.3 | (7.0) |
15.9 | 0.0 | 6.5 | (9.4) |
Change from
previous forecasts
c-b
＋16.5
＋6.2
＋6.3
＋6.5
(Comparison with last year)
【Increased】 Electronics & Automotive
Systems
【Decreased】 Infrastructure
【Increased】 Electronics & Automotive
Systems, Functional Products
【Decreased】 Infrastructure
Increased interest expense Decreased foreign exchange gain
Extraordinary income for the previous FY: Gain on sale of equity interest in consolidated subsidiaries (JPY10.8 billion), etc.
(Comparison with previous forecasts)
【Increased】 Infrastructure
【Increased】
Infrastructure, Electronics & Automotive Systems, Functional Products
Average copper price
Average exhange rate
1,209 | 1,243 | 1,262 | +52 |
135 | 144 | 145 | +9 |
*2Announced on February 8, 2024
+19
+1
*1Restated only the FY2022 financial results following the start of voluntary application of the International Financial Reporting Standards (IFRS) at the equity method affiliate UACJ Corporation
(Refer to the Appendix for details)
*3 Impact of deconsolidation of TOTOKU : Net sales JPY (12.2) billion, Operating income: JPY (2.3) billion
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FY23 results - P/L summary
（JPY billion, JPY/kg, JPY/USD）
Net sales
Operating income （Margin） Interest revenues/expenses Profit/loss in equity method affiliates Foreign exchange gain/loss Ordinary income （Margin） Extraordinary income/loss Income taxes
Net income attributable to non- controlling interests Net income attributable to owners of parent
（Margin）
FY22 | FY23 | FY23 | YoY | Change from | ||
Previous | previous | |||||
Results* | 1 | Results | 3 | |||
forecasts* | 2 | change* | forecasts | |||
a | b | c | c-a | c-b | ||
1,066.3 | 1,040.0 | 1,056.5 | (9.8) | +16.5 | ||
15.4 | 5.0 | 11.2 | (4.3) | +6.2 | ||
1.4% | 0.5% | 1.1% | (0.4) | +0.6 | ||
(5.2) | - | (7.4) | (2.1) | - | ||
3.6 | - | 6.3 | +2.7 | - | ||
1.7 | - | (0.1) | (1.8) | - | ||
17.3 | 4.0 | 10.3 | (7.0) | +6.3 | ||
1.6% | 0.4% | 1.0% | (0.6) | +0.6 | ||
10.7 | 9.9 | 9.8 | (0.9) | (0.1) | ||
(10.3) | - | (11.6) | (1.3) | - | ||
(1.7) | - | (2.0) | (0.2) | - | ||
15.9 | 0.0 | 6.5 | (9.4) | +6.5 | ||
1.5% | 0.0% | 0.6% | (0.9) | +0.6 |
Breakdown of changes （Full year YoY）
See page 7
See page 8
・Extraordinary income: (2.7) [17.6 → 14.9] ・Extraordinary loss: +1.9 [(7.0) → (5.1)]
Average copper price Average exhange rate
1,209 | 1,243 | 1,262 | +52 | +19 |
135 | 144 | 145 | +9 | +1 |
2 | ||||
* Announced on February 8, 2024 |
*1Restated only the FY2022 financial results following the start of voluntary application of the International Financial Reporting Standards (IFRS) at the equity method affiliate UACJ Corporation (Refer to the Appendix for details)
*3 Impact of deconsolidation of TOTOKU : Net sales JPY (12.2) billion Operating income: JPY (2.3) billion
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FY23 results - Breakdown of changes in net sales
(JPY billion)
(9.8)
0
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FY23 results - Breakdown of changes in operating income
(JPY billion)
(8.5)(4.8)
0
*Including foreign currency exchange
+9.8
Communications Solutions : (18.7)
Automotive Products & Batteries : +9.2
Electronics Component Material : (1.4)
Functional Products : +2.0
Others : +0.4
Communications Solutions : (1.7)
Automotive Products & Batteries : (2.0)
Electronics Component Material : (1.2)
Others : +0.1
Communications Solutions : +1.2 | Price optimization/Cost reductions+6.9 | |||
Automotive Products & Batteries: +3.8 | ||||
Impact of lower operating volumes (5.7) | ||||
Electronics Component Material : +2.3 | ||||
Functional Products : +1.6 | ||||
Others : +0.9 |
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FY23 Results
Net sales & Operating Income by Segment
- Infrastructure
YoY change: Decreased operating income on lower net sales
Change from previous forecast Overperformed (operating income):
(JPY billion)
Infrastructure
Communications Solutions
Energy infrastructure
FY22 Results
a 323.9
217.6
106.3
*FY23 Previous forecasts b
265.0
160.0
105.0
Net Sales | Operating income | (+) Increase profits / (-) Decrease profit | |||||||
FY23 | YoY | Change from | FY22 | *FY23 | FY23 | YoY | Change from | YoY | Change from |
previous | Previous | previous | previous | ||||||
Results | change | Results | Results | change | change | ||||
forecasts | forecasts | forecasts | forecasts | ||||||
c | c-a | c-b | d | e | f | f-d | f-e | ||
278.2 | (45.7) | +13.2 | 8.6 | (13.5) | (11.3) | (19.9) | +2.2 | ||
Decreased income on lower revenue | Overperformed | ||||||||
(-) Prolonged inventory adjustments, | (+) Increased revenue | ||||||||
restrained investment and project delays | |||||||||
by customers in the Americas | |||||||||
(-) Productivity impact of lower operating | |||||||||
168.0 | (49.7) | +8.0 | 6.5 | (14.5) | (13.0) | (19.5) | +1.5 | volumes | |
(+) Sales price optimization | |||||||||
(+) Reduced fixed cost | |||||||||
(+) Increased orders from recovering data | |||||||||
center related demand | |||||||||
Decreased income on higher revenue | Generally as forecast | ||||||||
(-)Large-scale projects delay to next fiscal | |||||||||
year and beyond | |||||||||
110.2 | +4.0 | +5.2 | 2.1 | 1.0 | 1.7 | (0.4) | +0.7 | (-) Increased depreciation expenses | |
(-) Product compensation costs were incurred | |||||||||
(+) Strong demand of functional power cable | |||||||||
Ⓡ | |||||||||
(Rakuraku aluminum cable , etc.) |
*Announced on February 8, 2024 | *Announced on February 8, 2024 |
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FY23 Results
Net sales & Operating Income by Segment
◼ Electronics & | YoY change: | Increased operating income on higher net sales |
Automotive Systems | Change from previous forecast | Overperformed |
(operating income): |
(JPY billion) | Net Sales | ||||
*1FY23 | |||||
FY22 | FY23 | YoY | Change from | ||
Previous | previous | ||||
Results | Results | change | |||
forecasts | forecasts | ||||
a | b | c | c-a | c-b |
Operating income | (+) Increase profits / (-) Decrease profit | ||||||
FY22 | *1FY23 | FY23 | YoY | Change from | YoY | Change from | |
Previous | previous | previous | |||||
Results | Results | change | change | ||||
forecasts | forecasts | forecasts | |||||
d | e | f | f-d | f-e |
Electronics &
Automotive610.3
Systems
660.0
653.7
+43.4
(6.3)
4.7 | 15.5 | 18.7 | +14.0 | +3.2 |
Automotive
Products 337.4
& Batteries
395.0
379.8
+42.4
*2
(15.2)
1.5
13.0
15.6
+14.2 +2.6
Increased income on higher revenue | Overperformed |
(+) Increased in automobile production | (+) Lump-sum income from |
(+) Improvement effects | customers due to market |
・Improve productivity and reduce air | fluctuations |
expenses by stabilizing customers' | (+) Impact of foreign currency |
production plans | exchange |
・Sales price optimization | |
(-) Product compensation costs | |
(-) Product compensation costs were incurred | were incurred |
(-) Slowdown for Japanese OEM operating in | |
the Chinese market | |
Decreased income on higher revenue | Generally as forecast |
(-) Demand for electronics-related products |
Electronics | 273.0 | 265.0 | 273.9 | +1.0 | +8.9 |
Component | |||||
Material |
3.2
2.5
3.1
(0.1) +0.6
declined |
(+) Sales price optimization |
(+) Limited fixed expenses |
*1Announced on February 8, 2024
*2 Impact of elimination of intra-company transactions adjustment
*1Announced on February 8, 2024
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Furukawa Electric Co. Ltd. published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 06:13:04 UTC.
