First Quarter Resultsdownload.brother.com/.../2013/fy2013q1/2012q1e_p.pdfConsolidated Results for...

Brother Industries, Ltd.August 2, 2012

Information on this report, other than historical facts, refers to future prospects and performance, and has been prepared by our Management on the basis of information available at the time of the announcement. This covers various risks, including, but not limited to, economic conditions, customer demand, foreign currency exchange rates, tax rules, regulation and other factors. As a result, actual future performance may differ from any forecasts contained on this report.

Fiscal Year 2012 (ending March 31, 2013)

First Quarter Results(3-month results ended June 30, 2012)

© 2012 Brother Industries, Ltd. All Rights Reserved. 2

Although sales of communications & printing equipment and home sewing machines steadily increased, total sales slightly decreased due to a negative impact from forex and sharp decline of sales in industrial sewing machines.

Operating income decreased due to a negative impact from forex and sales decrease in the Machinery & Solution business.

Net Income increased due to an decrease in income tax caused by tax effect accounting.

Consolidated Results for FY2012 Q1

(100 Millions of Yen)Q1 3/2013 Q1 3/2012 Change Rate of Change

[Actual] [Actual] (w/o forex impact)

-1.7%(2.7%)

115 142 -27 -18.8%9.6% 11.6% -2.0%

7 4 3122 146 -24 -16.1%

-4 9 -1216 89 -73

103 66 37 56.8%

(Yen)Exchange USD 80.40 81.71 -1.31Rates EUR 103.35 118.11 -14.76

Net Sales 1,207 1,228 -21

Net Income

Operating IncomeOperating Income RatioNon-operating Income (Loss)

Current ProfitsExtraordinary Income (Loss)

Income Taxes


Communications & Printing equipmentElectronic stationeryHome sewing machinesIndustrial sewing machinesMachine toolsOnline karaoke, Contents distribution servicesOthers

Network & ContentsMachinery & SolutionPersonal & HomePrinting & Solutions

Others

Net Sales(100 Millions of Yen)

Operating Income(100 Millions of Yen)

Consolidated Results for FY2012 Q1Sales and Operating Income by Business Segment

729 720

88 8568 7365 42

144 138

109 110

26 38

Q1 2012/3 Q1 2013/3

1,228 1,207

106 88

4

5

32

20

-3 -2

3

4

Q1 2012/3 Q1 2013/3

142115


Main Factors for Changes in Current Profits< FY2012 Q1 >




Electronic stationeryGeographical Sales(100 Millions of Yen)

Communications ＆ Printing equipmentGeographical Sales(100 Millions of Yen)

Change(w/o forex impact)

Although sales grew steadily in hardware and consumables in the Americas, total sales decreased due to a negative impact from forex.

Operating income decreased mainly due to a negative impact from forex.

Printing & Solutions Sales & Operating Income< FY2012 Q1 >

88 85

729 720

817 805

0

500

1,000

3/2012 Q1 3/2013 Q1

106

88

13.0%11.0%

0.0%

10.0%

20.0%

30.0%

0

50

100

150

3/2012 Q1 3/2013 Q1

Operating Income Ratio

-1.2% ( +4.9% )

Communications &Printing equipment

Electronic stationery -3.8% ( +1.5% )

Total-1.4% ( +4.6% )

3/2012 Q1 3/2013 Q1

Americas 246 269 +9.3% (+14.0%)

Europe 277 243 -12.2% (-1.3%)

Asia & Others 105 102 -3.2% (-0.8%)

Japan 100 106 +5.9% (+5.9%)

Change(w /o forex impact)

3/2012 Q1 3/2013 Q1

Americas 42 41 -2.5% (+0.8%)

Europe 28 25 -9.4% (+2.0%)

Asia & Others 10 11 +0.6% (+1.8%)

Japan 8 8 +3.2% (+3.2%)






Home sewing machinesGeographical Sales(100 Millions of Yen)

Sales grew steadily mainly in Europe and the Americas.

Operating income increased mainly due to a sales increase.

Personal & Home Sales & Operating Income< FY2012 Q1 >

68

73

0

20

40

60

80

100

3/2012 Q1 3/2013 Q1

45

5.2%6.3%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

0

2

4

6

8

10

3/2012 Q1 3/2013 Q1


Home sew ing machines

+8.7% ( +15.4% )

3/2012 Q1 3/2013 Q1

Americas 32 34 +6.3% (+11.4%)

Europe 14 19 +30.7% (+49.3%)

Asia & Others 7 7 -5.2% (-2.1%)

Japan 14 14 -1.0% (-1.0%)






Industrial sewing machinesGeographical Sales(100 Millions of Yen)

Machine toolsGeographical Sales(100 Millions of Yen)

*As machine tools are mostly exported to customers abroad directly from Japan, sales are reported in ‘Japan’ segment regardless of destination of exports. Therefore, for the purpose of this material, the regional breakdown ratios of exports from Japan multiplied by total consolidated sales is shown here.

Sales decreased due to weak demands of industrial sewing machine while demands of machine tools were steady.

Operating income decreased due to a sales decrease in Industrial sewing machines.

Machinery & Solution Sales & Operating Income< FY2012 Q1 >

144 138

6542

208180

0

100

200

300

3/2012 Q1 3/2013 Q1

32

20

15.5%

11.1%

0.0%

10.0%

20.0%

30.0%

40.0%

0

10

20

30

40

3/2012 Q1 3/2013 Q1


Industrial sewing machines-35.2% ( -33.4% )

Machine tools-4.1% ( -4.5% )

Total-13.8% ( -13.4% )

3/2012 Q1 3/2013 Q1

Americas 8 9 +3.3% (+5.3%)

Europe 10 7 -34.6% (-25.3%)

Asia & Others 44 25 -43.3% (-43.2%)

Japan 1 1 -13.5% (-13.5%)

Change(w /o forex impact) 3/2012 Q1 3/2013 Q1

Americas 5 5

Europe 6 4Asia & Others 123 115

Japan 10 14

+10.5%

-43.1%

-6.6%

+45.5%

Change




Change

• Regional sales breakdown for “Network & Contents” is not referred here because majority of sales are made in Japan.

Although sales in the karaoke shops steadily increased ,total sales remained at a similar level to the same period of last year due to a restraint of purchase of the Online Karaoke Machine before a new model release.

Although Network & Contents business was in the red, it was improved compared to the same period of last year.

Network & Contents Sales & Operating Income< FY2012 Q1 >

109 110

0

50

100

150

200

3/2012 Q1 3/2013 Q1

-3 -2

- 3.2%- 1.6%

-10.0%

0.0%

10.0%

20.0%

-10

0

10

20

3/2012 Q1 3/2013 Q1


+1.2%


Consolidated Forecast for FY 2012 ( ending March 31, 2013 )

Sales are expected to increase in all business segments as demand for products is expected to be steady.

Despite the negative impact from forex, operating income is expected to remain at a similar level to the previous year due to profits from the increased sales and cost reduction.

(100 Millions of Yen)3/2013 3/2012

[Forecast] [Actual] Change Rate of Change

340 342 -2 -0.5%6.4% 6.9% -0.5%

10 2 8350 344 6 1.9%-10 -2 -8110 146 -36230 195 35 17.8%

(Yen)Exchange USD 80.07 79.30 0.77Rates EUR 104.01 110.17 -6.16

5,300 4,974 6.6%

Extraordinary Income (Loss)

326Net Sales

Income TaxesNet Income

Operating IncomeOperating Income RatioNon-operating Income (Loss)

Current Profits

* Assumed future currency exchange rates for the consolidated forecasts for the fiscal year ending March 31, 2013 are USD=80.00 yen and EUR=105.00 yen.

* The above “Exchange Rates” for the fiscal year ending March 31, 2013 are the average rates for the year.


Communications & Printing equipmentElectronic stationeryHome sewing machinesIndustrial sewing machinesMachine toolsOnline karaoke, Contents distribution servicesOthers

Network & ContentsMachinery & SolutionPersonal & HomePrinting & Solutions

Others



Consolidated Forecast for FY2012 (ending March 31,2013)Sales and Operating Income by Business Segment

3,034 3,001 3,179

368 371384

294 307326241 218243423 487509

528 459511140 131148

3/2011

［Actual］

3/2012

［Actual］

3/2013

［Forecast］

5,028 5,3004,974

271220 198

29

2626

75

8385

-27 0

16

13

13 15

3/2011

［Actual］

3/2012

［Actual］

3/2013

［Forecast］

361 340342





Communications ＆Printing equipmentGeographical Sales(100 Millions of Yen)

Electronic stationeryGeographical Sales(100 Millions of Yen)

Printing & Solutions Sales & Operating Income< Forecast for FY2012( ending March 31,2013 ) >

Sales are expected to increase steadily in all regions

Operating income is expected to decrease due to the negative impact from forex and increases in depreciation and amortization expense.

371 384

3,001 3,179

3,3723,563

0

1,000

2,000

3,000

4,000

3/2012 Actual 3/2013 Forecast

220198

6.5%5.6%

0.0%

5.0%

10.0%

15.0%

20.0%

0

100

200

300

400



+5.9% ( +7.4% )

Communications &Printing equipment

+3.5% ( +4.4% )

Electronic stationery

Total

+5.7% ( +7.1% )

3/2012Actual

3/2013Forecast

Americas 1,045 1,122 +7.4% (+7.6%)

Europe 1,129 1,130 +0.0% (+4.2%)

Asia & Others 399 447 +11.9% (+10.6%)

Japan 427 480 +12.3% (+12.3%)


3/2012Actual

3/2013Forecast

Americas 176 180 +2.3% (+2.1%)

Europe 116 117 +0.9% (+5.2%)

Asia & Others 43 49 +14.9% (+12.4%)

Japan 36 38 +4.1% (+4.1%)


© 2012 Brother Industries, Ltd. All Rights Reserved.

26

8.5% 8.0%

0.0%

5.0%

10.0%

15.0%

20.0%

0

10

20

30

40



12




Home sewing machinesGeographical Sales(100 Millions of Yen)

Personal & Home Sales & Operating Income< Forecast for FY2012( ending March 31,2013 ) >

Sales are expected to increase steadily in all regions

Operating income is expected to remain at a similar level to the previous year.

26

307326

0

100

200

300

400


Home sew ing machines

+6.2% ( +7.5% )

3/2012Actual

3/2013Forecast

Americas 148 152 +3.1% (+3.1%)

Europe 70 75 +7.7% (+13.8%)

Asia & Others 29 31 +8.6% (+8.2%)

Japan 61 68 +10.8% (+10.8%)






Industrial sewing machinesGeographical Sales(100 Millions of Yen)

Machine toolsGeographical Sales(100 Millions of Yen)

*As machine tools are mostly exported to customers abroad directly from Japan, sales are reported in ‘Japan’ segment regardless of destination of exports. Therefore, for the purpose of this material, the regional breakdown ratios of exports from Japan multiplied by total consolidated sales is shown here.

Machinery & Solution Sales & Operating Income< Forecast for FY2012( ending March 31,2013 ) >

Sales are expected to increase due to steady demands from Asia & Others.

Operating income is expected to have a slight increase against the previous year.

487 509

218243

704752

0

200

400

600

800

1,000


83 85

11.9%11.3%

0.0%

10.0%

20.0%

30.0%

0

50

100

150



Industrial sewing machines+11.7% ( +10.0% )

Machine tools+4.6% ( +2.7% )

Total+6.8% ( +5.0% )

3/2012Actual

3/2013Forecast

Americas 31 34 +8.4% (+7.4%)

Europe 30 32 +7.3% (+13.2%)

Asia & Others 151 173 +14.9% (+11.5%)

Japan 6 4 -30.6% (-30.6%)


3/2012Actual

3/2013Forecast

Americas 18 16 -12.3%

Europe 15 14 -10.6%

Asia & Others 404 431 +6.7%

Japan 50 49 -1.7%

Change



Change

* Regional sales breakdown for “Network & Contents” is not referred here because the major part of sales are made in Japan.

Network & Contents Sales & Operating Income< Forecast for FY2012( ending March 31,2013 ) >


Sales are expected to increase due to the introduction of the new Online Karaoke Machine

Operating income is expected to show a profit due to sales increase.

459511

0

200

400

600

800


-0

16

-0.0%

3.2%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

-10

0

10

20



+11.3%


Capital expenditure and Depreciation and amortization(100 Millions of Yen)

R&D expenses(100 Millions of Yen)

Inventories(100 Millions of Yen)

Q1 3/2012 Actual

(Number of months)Inventories Inventories / Cost of sales

(Reference) R&D expenses, Capital expenditure, Depreciation and amortization and Inventories

3/2012Actual

3/2013 Forecast

643 690 710 723 728 770 779 765 788

2.8 3.0 2.9 2.93.2 3.4 3.2 3.1 3.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0

500

1,000

Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12

87 86

392 385

0

200

400

47 45

278

359

52 52

231 254

0

200

400Capital expenditure

Depreciation and amortization

Q1 3/2013 Actual

Q1 3/2012 Actual

3/2012Actual

3/2013 Forecast

Q1 3/2013 Actual

First Quarter Resultsdownload.brother.com/.../2013/fy2013q1/2012q1e_p.pdfConsolidated Results for...

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