FY2015 Consolidated Results (Fiscal year ended March 31, 2016) · FY2015 Consolidated Results...
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FY2015 Consolidated Results (Fiscal year ended March 31, 2016) May 12, 2016
Transcript of FY2015 Consolidated Results (Fiscal year ended March 31, 2016) · FY2015 Consolidated Results...
FY2015 Consolidated Results (Fiscal year ended March 31, 2016)
May 12, 2016
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1. Topics for the FY2015
Establishment of new semiconductor business company and transfer of semiconductor business to the new company.
Seiko Instruments Inc. (“SII”) has established a new company through a joint investment with the Development Bank of Japan Inc. (“DBJ”), and transferred the semiconductor business of SII to the new company.
September 2015：Conclusion of definitive agreement with DBJ, Establishment of new company
January 2016 ： Joint investment (SII equity 60%)
Business transfer
Transfer of Wide Format Printer Business
SII’s wide format printer business was transferred to OKI Data Corporation on October 1, 2015.
Semiconductor business / Wide format printer business
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Topics for the FY2015
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2. Business Results
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FY2015 Statement of Income (Apr.2015 - Mar.2016)
（億円） （Billions of yen）
FY2014
Full Year
FY2015
Full Year
Change
Amt. %
Net Sales 293.4 296.7 +3.2 +1.1%
Gross Profit 104.2 108.5 +4.2 +4.1%
Operating Income 11.6 13.3 +1.6 +14.1%
% 4.0% 4.5% +0.5p －
Ordinary Income 12.3 11.8 -0.4 -4.0%
% 4.2% 4.0% -0.2p －
Profit before
incomte taxes 24.6 8.8 -15.8 -64.2%
Profit attributable to
owners of parent 21.7 12.1 -9.6 -44.2%
% 7.4% 4.1% -3.3p －
Exchange
Rates (JPY)
USD 109.8 120.1 +10.2 +9.3%
EUR 138.6 132.5 -6.0 -4.4%
Increase in Operating Income +1.6
Decrease in Interest expenses +0.9
Increase in Foreign exchange losses - 2.7
Decrease in Equity method Income - 0.1
Others - 0.1
Ordinary Income： -0.4
Increase in GP +4.2 Increase in Selling, general and
administrative expenses -2.6
Operating Income： ＋1.6
Net Sales： ＋3.2
Extraordinary Income/Losses ： -3.0
Exchange rate fluctuations +11.5
Extraordinary Income +0.4
Gain on sales of non-current assets +0.4
Extraordinary Losses - 3.5
Loss on sales of non-current assets - 0.1 Business structure improvement expenses - 2.3
Impairment loss - 0.4
Restructuring expenses - 0.4 Loss on retirement of non-current assets - 0.1
-9.3 -10.3
26.4 28.2
21.1 19.4
96.1 94.9
159.0 164.4
-50.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Q4 Q4
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FY2014 FY2015
293.4 296.7
Sales by Reported Segments（Apr.2015 – Mar.2016）
(Billions of yen)
（Billions of yen）
Net Sales
FY2014
Full Year
FY2015
Full Year Change
Watches 159.0 164.4 +5.3
Electronic Devices 96.1 94.9 -1.2
Systems Solutions 21.1 19.4 -1.6
Sub Total 276.3 278.8 +2.4
Others 26.4 28.2 +1.7
Cons. Adj. -9.3 -10.3 -0.9
Cons. Total 293.4 296.7 +3.2
Others
Electronic
Devices
Cons. Adj.
Systems
Solutions
Watches
0.6 0.9 0.3 0.3 1.8
2.9
12.3 12.7
-3.4 -3.6
-5.0
0.0
5.0
10.0
15.0
20.0
Q4 Q4
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11.6 13.3
Others
Electronic
Devices
Cons. Adj.
Systems
Solutions
FY2014 FY2015
Operating Income by Reported Segments（Apr.2015 - Mar.2016)
(Billions of yen)
（Billions of yen）
Operating Income
FY2014
Full Year
FY2015
Full Year Change
Watches 12.3 12.7 +0.3
Electronic Devices 1.8 2.9 +1.0
Systems Solutions 0.3 0.3 +0.0
Sub Total 14.5 16.0 +1.4
Others 0.6 0.9 +0.2
Cons. Adj. -3.4 -3.6 -0.1
Cons. Total 11.6 13.3 +1.6
Watches
33.0
40.9 45.2
39.7 38.6
46.6 44.9
34.2
74.0
119.2
159.0
85.2 130.1
164.4
Q1 Q2 Q3 Q4
FY2014 FY2015
FY2014YTD FY2015YTD
・Watches ：Performance was strong, driven by the Grand Seiko, Mechanical (Presage) and
ladies’ models by the Lukia and others. Sales also grew steadily for the Alba, an affordable- priced product.
・Watches ：Germany, Taiwan and other markets continued to perform favorably. In addition,
Australia, where a Seiko Boutique opened in Sydney in March, saw a year-on-year increase on a local currency basis. Sales in China and Hong Kong were sluggish from the impact of the slowdown in the Chinese economy.
・Movements ：The market for standard movements and value-added movements stagnated, and
challenging conditions continued.
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Net Sales Operating Income
Watches Business
(Billions of yen) (Billions of yen)
（In Japan)
（In Overseas)
3.1
4.9
4.2
0.0
3.9
5.6
3.4
-0.4
9.6
13.1 12.7
8.0
12.2
12.3
-1
0
1
2
3
4
5
6
Q1 Q2 Q3 Q4
0.7
0.2
0.6
0.2
1.0
1.4
-0.1
0.5
2.4 2.3 2.9
1.0 1.6
1.8
Q1 Q2 Q3 Q4
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・ Electronic Devices：Sales of semiconductors were favorable during the first half, mainly for power
management ICs for smartphones. However, oscillator ICs faced difficult conditions.
Sales of quartz crystals were firm.
・ Mechatronics : Sales performed steadily for the hard disc drive component business.
The camera shutter-related business improved significantly year on year.
・Others ：Net sales decreased due to the transfer of the wide format printer business to OKI
Data Corporation on October 1, 2015, although sales of inkjet print heads and small
thermal printers grew steadily.
Net Sales Operating Income
Electronic Devices Business
(Billions of yen) (Billions of yen)
23.4 24.0 24.0 24.5 24.1 26.0
22.8 21.8
47.4
71.5
96.1
50.1
73.0 94.9
0.0
20.0
40.0
60.0
80.0
100.0
120.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Q1 Q2 Q3 Q4
FY2014 FY2015FY2014YTD FY2015YTD
4.5
5.6
4.8
6.0
3.4
5.1
4.4
6.2
10.1
15.0
21.1
8.6
13.1
19.4
0.0
5.0
10.0
15.0
20.0
25.0
0.0
10.0
Q1 Q2 Q3 Q4
FY2014 FY2015
FY2014YTD FY2015YTD
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･ In the payment-related business, sales in the data service business expanded, particularly
in mobile payment intermediary centers. However, in the communications-related business,
sales of products for consumers plunged, and sales of products for the restaurant industry
declined due to the impact of a slump in the industry overall.
Net Sales Operating Income
Systems Solutions Business
(Billions of yen)
-0.32
0.25
0.00
0.39
-0.29
0.27
-0.20
0.58
-0.02
-0.22
0.36
-0.06
-0.06
0.32
0
0
0
0
0
0
0
0
0
1
1
1
Q1 Q2 Q3 Q4
(Billions of yen)
-0.26
-0.14
0.50 0.53
0.14
0.04
0.40
0.32
0.18
0.58
0.90
-0.40
0.09
0.63
0
0
0
0
0
0
0
0
1
1
Q1 Q2 Q3 Q4
5.3 5.9
7.2
7.8 6.8 6.7
7.3 7.2
11.2
18.5
26.4
13.6
20.9
28.2
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0.0
2.6
5.2
7.8
10.5
Q1 Q2 Q3 Q4
FY2014 FY2015
FY2014YTD FY2015YTD
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・Clocks ：Income grew steadily, mainly in Japan.
・Others：The Wako Business performed steadily for the full year. Even so, signs of a change
in purchasing trends among tourists visiting Japan were seen in sales of high-priced
products from the beginning of the fourth quarter.
Net Sales Operating Income
Others
(Billions of yen) (Billions of yen)
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137.2 127.5
Interest Bearing Debt
（Billions of yen）
Balance Sheet as of Mar. 31, 2016
Mar. 31
2015 (a)
Mar. 31
2016 (b)
Change (b) – (a)
Inventories 62.9 65.1 +2.2
Interest
Bearing Debt 137.2 127.5 -9.6
Net Assets 92.5 102.6 +10.1
Total Assets 333.7 329.1 -4.5
Equity Capital
Ratio 27.1% 28.7% +1.6p
Net Debt
Equity Ratio 1.0 0.8 -0.2
Number of
Employees 13,565 13,437 -128
（Billions of yen）
95.9 88.4
41.2
39.1
0.0
30.0
60.0
90.0
120.0
150.0
End of Mar.2015
End of Mar.2016
Cash and deposits
Net Interest Bearing Debt(Interest Bearing Debt - Cash & Deposit)
15.5 16.5 15.0
-10.9
46.2
-8.3
4.6
62.8
6.7
-20
-10
0
10
20
30
40
50
60
70
FY2013 FY2014 FY2015
CF from operating activitiesCF from investing activitiesFree CF
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Statements of Cash Flow
FY2013 FY2014 FY2015
Profit before income taxes 8.7 24.6 8.8
Depreciation 12.2 10.8 10.3
Others -5.4 -19.0 -4.0 Net cash provided by
(used in) operating activities 15.5 16.5 15.0
Purchase of property,
plant and equipment -11.0 -9.3 -13.0
Others 0.0 55.6 4.7 Net cash provided by
(used in) investing activities -10.9 46.2 -8.3
Net increase (decrease) in
loans payable -2.4 -62.9 -8.7
Others -1.0 -3.8 2.0 Net cash provided by
(used in) financing activities -3.5 -66.8 -6.6
Effect of exchange rate change on
cash and cash equivalents etc. -1.3 1.7 -1.4
Cash and cash equivalents 42.5 40.2 38.9
Free cash flow 4.6 62.8 6.7
(Billions of yen) (Billions of yen)
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3. Financial Forecast for FY2016
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（億円）
Summary of Financial Forecast for FY2016
（Billions of yen） FY2015
Actual
FY2016 Change
Full Year 1st Half Full Year
Net Sales 296.7 140.0 290.0 -6.7
Operating Income 13.3 8.0 12.0 -1.3
% 4.5% 5.7% 4.1% -0.4p
Ordinary Income 11.8 8.0 12.0 +0.2
% 4.0% 5.7% 4.1% +0.1p
Profit attributable to
owners of parent 12.1 5.0 10.0 -2.1
% 4.1% 3.6% 3.4% -0.7p
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Financial Forecast for FY2016 by Reported Segments
（Billions of yen）
Net Sales
FY2015
Actual
FY2016
Forecast Change
Watches 164.4 160.0 -4.4
Electronic Devices 94.9 90.0 -4.9
Systems Solutions 19.4 20.0 +0.6
Sub Total 278.8 270.0 -8.8
Others 28.2 29.0 +0.8
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Cons. Total 296.7 290.0 -6.7
Operating Income
FY2015
Actual
FY2016
Forecast Change
12.7 12.0 -0.7
2.9 3.0 +0.1
0.3 1.0 +0.7
16.0 16.0 ±0.0
0.9 1.0 +0.1
13.3 12.0 -1.3
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FY2015 USD FY2015 EUR
Forecast Exc. Rate USD Forecast Exc. Rate EUR
FY2014 USD FY2014 EUR
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FY2015 Actual Sensitivity by Exchange Rate of FY2016
Sales Ratio by Area
* FY2015 Actual data
Exchange Rate
Trend of Exchange Rate
USD EUR
Forecast Exc. Rate JPY 110.0 JPY 125.0
For Sales
(Millions of yen) 1,300 150
For Income
(Millions of yen) 250 50
Q1 Q2 Q3 Q4 Average
(Q1–Q4)
Average USD 121.4 122.3 121.4 115.3 120.1
EUR 134.2 136.0 133.0 127.1 132.5
Closing
Date
USD 122.4 119.9 120.5 112.6 －
EUR 137.2 134.9 131.6 127.5 －
Japan 49%
America 9%
Europe 8%
Asia 34%
(JPY)
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◆ The forecasted results which appear in this report are based on
the information which we have obtained as of now, and on certain
assumptions deemed reasonable. As a result, actual results, etc.
may differ significantly from the forecasted figures due to a wide
range of factors.
Numbers are cut off to the unit indicated, unless otherwise specified.
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Reference
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FY2015 Statement of Income 4th Quarter (Jan.2016 - Mar.2016)
（億円） （Billions of yen）
FY2014
Q4
FY2015
Q4
Change
Amt. %
Net Sales 76.0 67.7 -8.3 -11.0%
Gross Profit 25.7 24.4 -1.2 -5.0%
Operating Income 0.3 -0.3 -0.6 -198.0%
% 0.4% -0.5% -0.9p －
Ordinary Income -0.2 -2.2 -1.9 ―
% -0.3% -3.3% -3.0p －
Profit before
incomte taxes -3.6 -3.8 -0.2 －
Profit attributable to
owners of parent -2.2 -0.5 +1.6 －
% -2.9% -0.8% +2.1p －
Exchange
Rates (JPY)
USD 119.1 115.3 -3.8 -3.2%
EUR 134.0 127.1 -6.8 -5.1%
Decrease in GP -1.2 Decrease in Selling, general and
administrative expenses +0.6
Operating Income： -0.6
Net Sales： -8.3
Exchange rate fluctuations -1.5
Extraordinary Income/Losses： -1.6
Extraordinary Income +0.1
Gain on sales of non-current assets +0.1
Extraordinary Losses - 1.8
Loss on sales of non-current assets - 0.1 Business structure improvement expenses - 0.7
Impairment loss - 0.4
Restructuring expenses - 0.4 Loss on retirement of non-current assets - 0.0
Decrease in Operating Income - 0.6
Decrease in Interest expenses +0.0
Increase in Foreign exchange losses - 0.8
Decrease in Equity method Income - 0.0
Others - 0.4
Ordinary Income： -1.9
-2.2 -1.9
7.8 7.2
6.0 6.2
24.5 21.8
39.7 34.2
-10.0
5.0
20.0
35.0
50.0
65.0
80.0
95.0
Q4 Q4
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Sales by Reported Segments（Jan.2016 – Mar.2016）
（Billions of yen）
FY2014 FY2015
67.7 76.0 （Billions of yen）
Net Sales
FY2014
Q4
FY2015
Q4 Change
Watches 39.7 34.2 -5.5
Electronic Devices 24.5 21.8 -2.7
Systems Solutions 6.0 6.2 +0.1
Sub Total 70.4 62.3 -8.0
Others 7.8 7.2 -0.6
Cons. Adj. -2.2 -1.9 +0.3
Cons. Total 76.0 67.7 -8.3
Others
Electronic
Devices
Cons. Adj.
Systems
Solutions
Watches
0.5 0.3
0.3
0.5
0.2 0.5
0.0
-0.4 -0.9
-1.3
-2.0
-1.0
0.0
1.0
2.0
Q4 Q4
Watches
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-0.3 0.3
FY2014 FY2015
Operating Income by Reported Segments（Jan.2016 – Mar.2016）
（Billions of yen）
（Billions of yen）
Operating Income
FY2014
Q4
FY2015
Q4 Change
Watches 0.0 -0.4 -0.5
Electronic Devices 0.2 0.5 +0.3
Systems Solutions 0.3 0.5 +0.1
Sub Total 0.7 0.7 +0.0
Others 0.5 0.3 -0.2
Cons. Adj. -0.9 -1.3 -0.4
Cons. Total 0.3 -0.3 -0.6
Watches
Others
Electronic
Devices
Cons. Adj.
Systems
Solutions
4.1 4.0 4.0
0.0
1.0
2.0
3.0
4.0
5.0
FY2014Actual
FY2015Actual
FY2016Forecast
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Investment / Research and Development Cost
12.0 5.6 7.5 （Billions of yen） （Billions of yen）
Investment / Depreciation Research and Development Cost
*Capital expenditures in FY2014 decreased due to replacement of some
investments with operating lease, and change of timing for some
investments to FY2015, and other factors.
10.8 10.3
12.0
0.0
3.0
6.0
9.0
12.0
15.0
FY2014Actual
FY2015Actual
FY2016Forecast
Investment
Depreciation
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End
