Summary of Financial Statement for Fiscal Year 2017 · (USD/kWh) incorporating power storage technology 2010 2020 2030 2040 2050 ... Household appliance market and inverter refrigerator

Summary of Financial Statement

for Fiscal Year 2017

May 31 th , 2018

TABUCHI ELECTRIC CO., LTD (Security code:6624)

Copyright(C) Tabuchi Electric Co., Ltd. All rights reserved. 1

FY2017Result Overview


Main point of FY2017 Result

(Inverter) The domestic PV power generation market is gradually resolving delays in the accreditation procedure after the implementation of the revised FIT, but minus continues from the previous year. Regarding the North American market expansion, sales of power storage systems started in Hawaii, California, Puerto Rico, etc., but the targets were not reached

(Power supply) Adapters for amusement continued to perform strongly and sales increased, but profit contribution was limited

（Transformer Business）Reactors for air-conditioner increased in Japan and ASEAN countries, but the impact of soaring resource prices also hampered profitability


4238 37

33 3128

4036

3228

2421

0

10

20

30

40

50

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

2010 2011 2012 2013 2014 2015 2016 2017

Japanese PV module shipment（kW）・FIT price (kWh)

Module shipment (Non-Resident) Module shipment (Resident)

FIT price (Resident) FIT price (Non-Resident)

Installed appx, total 5.24GW in Japan FY2017（▲18％ YonY)Overloading of panels will proceed, shipment of inverter will be further weak

Our main Small scale PV market (10～50kW）fell down rapidly

Amendment of FIT rule: Substantial reduction in new applications and delay in reapplication procedures continued

FY2017 Japanese PV Market

Feed in Tariff

5.24GW

Data from JPEA(Japan Photovoltaic Energy Association)*FIT（Feed in Tariff） Revised from April 2017


Consolidated Operating Result

Unit : Million yen

FY2016 FY2018 Difference

Sales 26,156 26,417 261

Operating Profit

▲3,333 ▲4,361 ▲1,027

Current Profit

▲3,415 ▲4,432 ▲1,016

Net Profit ▲5,782 ▲8,830 ▲3,048

In spite of the increase AC-adapter for Game console, Sales remain a slight increase due to the shrink of PV market in Japan and the delay of the entry of North America market. Impairment related to inverter business and depletion of inventory valuation resulted in large loss incurred


Operating Result by Segment

FY2016 FU2017 D i f f e r e n c e

Sales Operating Profit Sales Operating Profit Sales Operating Profit

Inverter 14,317

▲3,420

10,690

▲4,228

▲3,626

▲808

Power supply

2,447 5,984 3,536

Transformer 9,391 321 9,743 24 351 ▲296

Adjustment - ▲234 - ▲157 - 76

Total 26,156 ▲3,333 26,417 ▲4,361 261 ▲1,027

Unit : Million yen

Regarding segment profit, the inverter and the power supply unit are disclosed as a power supply unit


Summary for Sales by Segment

Power Supply Business Transformer Business

▲0.5%(vs FY2016) +3.7%(vs FY2016)

Drastic sales drop due to the shrink of domestic PV market

North America market entry has just begun

Steady shipment of AC-adapter for new video game console

Demand increase of Reactor for air-conditioner in Aceanand China

Sales stable Switching Transformer for Household appliances and office supply use


Quarterly Sales Trend by Segment

3,382

4,229

2,515

4,189

2,831 2,614 2,3132,930

319

208

664

1,255

1,6741,716

1,643949

2,627

2,216

2,201

2,345

2,6242,289

2,318 2,510

0

2,000

4,000

6,000

8,000

10,000

12,000

16-1Q 16-2Q 16-3Q 16-4Q 17-1Q 17-2Q 17-3Q 17-4Q

Inverter Power supply Transformer

FY2016 FY2017

7,1306,621

6,276 6,3906,3296,654

5,381

7,790

Unit : Million yen


Consolidated Operating Result Quarterly Trend

-553 -542

-1,248-990

-852

-1,320 -1,289

-900

6,3296,654

5,381

7,790

7,130

6,6216,276 6,390

0

2,000

4,000

6,000

8,000

10,000

-4,000

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

16-1Q 16-2Q 16-3Q 16-4Q 17-1Q 17-2Q 17-3Q 17-4Q

Operating Profit Ordinary Profit Net Profit Sales

FY2016 FY2017

Unit : Million yen

Sale

s (L

ine c

hart)

Op

era

ting

, ord

inary

, an

d n

et p

rofit (b

ar c

hart

）


5,009

8,111

0

2,000

4,000

6,000

8,000

10,000

122.4%

552.0%

0.0%

100.0%

200.0%

300.0%

400.0%

500.0%

600.0%

31.1%

5.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Consolidated Financial Position

Asset ‘17/3/E ’18/3/ELiabilities

&Equity’17/3/E ’18/3/E

Cash & EQV. 4,365 2,623 Acc. Payables 4,434 3,735

Acc. Receivables 5,268 4,496 Short-term debt 7,065 8,943

Inventories 9,064 7,482 Others (current) 3,177 2,337

Others (current) 1,024 1,044 Long-term debt 2,309 1,791

Fixed asset 12,121 7,051 Others (NC) 4,951 4,613

Deferred asset 0 0 Equity 9,905 1,277

Total 31,844 22,698 Total 31,844 22,698

Equity ratio

’18/3E’17/３/E

Fixed asset/Equity ratio

’17/３/E ’18/3E

Net cash

’17/３/E ’18/3E

Unit : Million yen

Unit : Million yen


Consolidated Statement of Cash Flows

FY2016 FY2017 Change

CF operating activities ▲2,985 ▲1,753 1,231

CF investing activities ▲2,635 ▲1,260 1,374

Free Cash Flows ▲5,621 ▲3,014 2,606

CF finaning activities 4,313 1,321 ▲2,991

Effect of exchange rate change on cash and cash equivalents

▲64 ▲48 16

Net increase in cashand cash equivalents ▲1,372 ▲1,741 ▲369

Cash and Cash equivalents at the

beginning of the period 5,737 4,365 ▲1,372

Cash and Cash equivalents at the end of

the period 4,365 2,623 ▲1,741

Unit : Million yen


Analysis of operating profit change（Y on Y）Unit : Million yen

-33 million

-43 million

FY2017

Cost cut

Added value reduction (sales mix,

product unit price decline)

+20 million

-9 million

Inventory valuation loss

-21 million


FY2018Forecast


Unit: Million Yen

*Foreign exchange rate : JPY110/USD Regarding FY2018 last half, currently unknown

FY2017FY2018

FH

Sales 26,417 13,000

Operating Profit ▲4,361 ▲600

Operating Profit ratio ーー

Current Profit ▲4,432 ▲700

Net

Profit▲8,830 ▲600

Dividend

per share

Yearly0JPY

At-half

0JPY

<Forecast> Consolidated Income


Forecast of results for the current fiscal year

Sales,Operating profit

The amusement power supply and transformer business is expected to remain

In the domestic market of inverters, the market is contracting, then Downward pressure of the selling price is strongWe aim to increase sales by focusing on expanding OEM's share

Expansion of overseas (especially US) power storage systems will begin full-scale sales in California state (expansion by subsidy acquisition)

Since sales of break-even point declines as a result of fixed cost reduction, we plan to make it profitable from higher sales from the second half

Forecast of results for the current fiscal year


0 0.1 0.2 0.3 0.4

Biomass

Geothermal

Hydro

Solar PV

Offshore wind

Onshore Wind

Electricity costs for Renewable（LCOE)

2017 2010

73% down during 7 years

Environmental change surrounding PV

Data：IRENA PV-Outlook2017LCOE:Levelised cost of electricity

Fuji Keizai

① Globally solar power generation cost already less than 10 cents / kWh Great expansion as a main power source that can achieve a decarbonized society

② Domestic market shift from FIT to private consumption③ Electricity demand tends to decline with the promotion of

population decline and energy saving, after 2030 The total demand will increase with the advance of electrification such as EV

④ Electricity supply will shift from one centralized large scale power generation (BER) to a distributed energy resources (DER) centered on renewable energy or a system incorporating power storage technology(USD/kWh)

2010 2020 2030 2040 2050

Domestic Electricity Resource trend

BER DER DER+S

BER(Bulk energy resources）

DER(Distributed energy resouces）

DER＋S(Battery）

Electrification proceedsEX) EV

Inverter change to Smart

0

20,000

40,000

60,000

80,000

100,000

2014 2015 2016 2017 2018 2019 2020

Japan America Acean China Europe・Others

Global PV market


Inverter products strategy by segment

PV+Storage system（EIBS）Promotion

Products

Triple phase 25/33kW inverter

Full MPPT inputEasy to install

Control PV and Battery in one inverter

Power

Small

Large

Resid

en

t Post FIT makes effective use of electricity with batteryFIT replace demand begins in 2019

Needs

Global standard and huge demand with low price(less than 10cents/w)

Our first one central input, reduce wiring cost by supporting DC 1,500 V input

In North America, sales began in Hawaii, California, Puerto Rico.Expanding OEM in domestic sales

Strategy

Small distributed inverter is Main stream for roof-topCost competitiveness with minimum function

Full-MPPT input led affordable price

Non

-Resid

en

t

Single /Triple phase9.9kW inverter

10kW～50kW

Middle range

Market shrink with revised FIT rulesCost performance is important, (overloading)

Share increase

Compatible with external output control (Smart inverter)

High range (2MW～) Triple phase 50/60kW inverter

New line-up for 2018


Power supply & devise division

Low voltage（LFT）

High frequency（HFT）

Power supply（PS）

Consumer use

Reactor for Air-condioner

Switching transformer for Printer

Industrial use

General purposeReactor

Transformers for chargers

Power supply for endoscope

Special purpose

Electromagnet for cancer treatment（Large scale）

Ac-adapter for game console

0%

10%

20%

30%

40%

50%

60%

70%

0

40000

80000

120000

160000

200000

Household appliance market and inverter

refrigerator

Washing machine

Air-conditioner

Inverter rate Refrigerator

Inverter rate Washingmachine

Inverter rate Air-conditioner

【Steady demand environment】Gently expanding production of household equipmentIncrease in inverter ratio by promoting energy conservationRapid demand for motorization, robotics, and FA equipment

【Advantage】80 years the transformer manufacturing and the global supply chainCustom proposal ability to understand power supply designTechnology and development system of Global 100 people scale

Data:Fuji-Keizai

Unit:K-pcs


Power Grid

On BoardCharger

WirelessPower

Transfer

High voltageBattery

Inverter

DC/DCconverter

Low voltageBoard-net

ElectricMotor

③②

①

①+④

Electrical system

Drive system

Tabuchi Power electronics technology

①AC/DC ②DC/AC ③DC/DC ④AC/AC

On-board equipment development

commissioned record form2016

Production out-put of inverters sharing technical basis

From 1990

New materials• Aluminum wire• Liquid magnetic material• High frequency tech

WPT with aluminum coilIdeal for lightweight

In-vehicle parts manufacturing standard acquired IATF 16949

Transform technologies cultivated with transformer, power supply and inverter into automotive business

Automotive business market


<Forecast> Sales Trend by Segment

FY2017 FY2018(FCST)FY2016

Unit: million yen

7,6116,705

5,446 5,243 5,470

527 1,9193,390

2,593 2,370

4,8444,547

4,913

4,829 5,160

0

5,000

10,000

15,000

20,000

FH LH FH LH FH

Inverter Poer supply Transformer

12,984 13,17213,751

12,66613,000

Regarding FY2018 last half, currently unknown


＜Forecast＞investment and depreciationUnit: million yen

Capital investment Depreciation

3,278

1,721

913

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2015 2016 2017

1,587

1,781

1,278

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2015 2016 2017

*Please note that the statements contained in this document are based on variousassumptions from presently available information and never constitute any guaranteethat projections of the performance will actually realize.

Contact

<Headquarters>Nissay-shinosaka Bldg., 3-4-30 Miyahara,Yodogawa-ku, Osaka 532-0003, JAPAN

<Tokyo Branch>Kinsan Bldg., 3-18-3 Kanda Nishiki-cho,Chiyoda-ku, Tokyo 101-0054, JAPAN

<Investor Relations>℡ +81 3 5259-6250(Osamu Inoue in Business Strategy Dept.)

Documents

Summary of Financial Statement for Fiscal Year 2017 · (USD/kWh) incorporating power storage technology 2010 2020 2030 2040 2050 ... Household appliance market and inverter refrigerator