financial results presentation - sanken-ele.co.jp
TRANSCRIPT
Sanken Electric Co., Ltd. 0
May 12, 2021
Financial Results PresentationFiscal Year ended March 2021
Sanken Electric Co., Ltd. 1
• Financial Results FY March 2021
• Guidance for FY March 2022
• Management Policy
• Growth Strategies
Financial Results
Medium-Term Management Plan 2021 (New)
Table of Contents
Sanken Electric Co., Ltd. 2
Financial Results FY March 2021
Sanken Electric Co., Ltd. 3
Takeaways
⚫ Full-year sales were 156.8 billion yen, above guidance announced in February.
⚫ 4Q sales by market topped guidance announced in February in the Semi
Devices Business with 4% for Automotive and 9% for White Goods, and
were in line with plan for Industrial & Consumer and Power Systems.
⚫ With the recording in 3Q of listing-related expenses of 5.1 billion yen for
Allegro MicroSystems, Inc. (Allegro), the full-year operating loss came to -
1.2 billion yen. Excluding one-time expenses including those related to the
listing of Allegro, operating profit amounted to 7.8 billion yen on a non-
GAAP basis.
⚫ An extraordinary loss of 3.6 billion yen related to restructuring was posted.
Sanken Electric Co., Ltd. 4
1H 2H Full Year 1H 2H Full Year Amount %
78.3 81.9 160.2 68.1 88.7 156.8 -3.4 -2.1
67.9 70.1 138.0 60.0 77.2 137.2 -0.7 -0.5
10.4 11.8 22.2 8.1 11.4 19.6 -2.7 -12.0
0.3 4.0 4.3 -0.6 -0.6 -1.2 -5.5 -
-0.7 3.4 2.7 -0.7 -2.7 -3.4 -6.1 -
-1.6 -2.8 -4.3 -2.7 -1.1 -3.8 +0.5 -
-4.2 -1.3 -5.6 -4.9 -2.1 -7.0 -1.4 - Loss attributable to
controlling shareholder
Sales
Semi Devices
Power Systems
Operating Profit (Loss)
Ordinary Profit (Loss)
FY Mar. 20 YoY change
Extraordinary Profit and Loss
FY Mar. 21
Exchange Rate (Yen/US$)(Full Year) FY March 2020: 108.71, FY March 2021: 106.11
Consolidated Results for FY March 2021
(Billions of Yen)
* Rates of change are calculated from the values in millions of yen
Sanken Electric Co., Ltd. 5
1Q 2Q 3Q 4Q Full Year
31.6 36.5 41.6 47.0 156.8
-0.1 1.0 2.6 4.3 7.8
-0.1 0.9 1.8 4.0 6.6
-0.8 -0.5 0.5 1.8 1.0
107.64 106.93 106.11 106.11 106.11
FY Mar. 2021
Exchange Rate (Yen/US$)
NI attributable to controlling
shareholder
Sales
Operating Profit (Loss)
Ordinary Profit (Loss)
Consolidated Results: FY March 2021
(Non-GAAP basis) * Business results excluding non-recurring items as determined by the Company and other adjustments
(Billions of Yen)
Main Non-GAAP adjustments (FY Mar. 21)
Operating expenses Allegro listing-related 5.4, Restructuring 3.1,
Overseas COVID-19 response 0.5
Non-operating expenses Allegro dividend-related 1.0
Extraordinary loss Restructuring 3.6
Sanken Electric Co., Ltd. 6
19.4 19.819.2
18.016.9
17.8 17.6 18.0
12.4
14.2
18.0
19.5
9.710.7
9.610.8 10.5 10.4
11.412.1
9.7
11.211.9
13.6
7.48.2
7.76.7 6.2 6.1 6.0
5.06.0
6.6 7.0 7.2
2.93.5 3.6
4.7
2.23.8 3.6
4.9
2.23.2 3.4
5.4
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY19 FY20 FY21Exchange Rate
(Yen/US$)109.11 110.27 111.15 110.93 109.91 108.61 108.66 108.71 107.64 106.93 106.11 106.11
4Q results were as follows:
・Automotive: Up 8% QoQ and YoY, reflecting growth in shipments as orders rapidly recovered from 3Q
・White Goods: Up 14% QoQ and 12% YoY, driven by brisker demand in Korea and increased adoption of inverters in China
・Industrial & Consumer: 3% QoQ and Up 44% YoY, owing to growth in shipments for servers and TVs
Consolidated Sales Trend by Market
Industrial & Consumer
(Billions of Yen)
Automotive
White Goods
Social Systems
Sanken Electric Co., Ltd. 7
Guidance for FY March 2022
Sanken Electric Co., Ltd. 8
Basis for setting FY2022 full-year forecast and future outlook
<Rationale>
⚫ Strong performance forecast to continue in 1H against a backdrop of rapidly
recovering orders at the end of previous fiscal year.
The automotive and white goods markets appear bullish, but there are inventory
buildups in customers’ supply chains and entry into an adjustment phase is
projected for 2H.
⚫ Both automotive and white goods have received orders beyond their production
capacity, making chip production capacity and wafer supply tight.
⚫ The operating profit forecast has been calculated on a production level based on
the sales forecast and accounts for the impact of halting operations
accompanied by the transfer of equipment ahead of factory closures.
⚫ For ordinary profit and other items under ordinary profit, consideration was made
regarding matters such as temporary costs for structural reform in its final stage.
Guidance for FY March 2022
Sanken Electric Co., Ltd. 9
• Global auto production for 2021 was assumed to be around 87 million units, but
there are increasing risks to push that figure down due to the impact of
semiconductor shortages.
• Our customers are reviewing the supply chains. Inventory turnover is accumulating
for OEMs and Tier 1 is moving ahead with securing parts for the BCP.
• Sanken’s recent orders have been strong. The forecast includes a rebound against
advance orders in 2H, although the impact of decreased auto production is not
directly visible at this point in time.
• In spite of a rapid recovery in auto production since the end of the previous fiscal
year, semiconductor manufacturers’ production has been unable to meet demand
and although circumstances differ among companies, at this point in time, it is
projected that it will need until at least the latter half of 3Q for that to be resolved.
Semi Devices: Market-by-Market Outlook
Automotive Market
Sanken Electric Co., Ltd. 10
• All air conditioners produced for the Chinese market finished shifting to inverters in
July 2020 due to the unification of energy-saving standards. From July 2021 only
products complying with the new standards can be sold, so each company has
finished adjusting inventories.
• China’s four major air conditioner companies are expanding their use of inverter
technology in export models.
• In washing machines, inverter model sales were strong mainly in Europe and the
U.S. on the back of expanded demand for larger models and lifestyle changes
under the COVID-19 pandemic. Sanken’s main customers, Korean manufacturers,
are moving ahead on maximizing production as strong demand continues.
• Recent demand is forecast to continue at a high level, although there is some
seasonality. There is extremely strong demand for Sanken’s products due to shifts
to inverter and DC motor technologies and responding to deadlines has become an
urgent challenge.
Semi Devices: Market-by-Market Outlook
White Goods Market
Sanken Electric Co., Ltd. 11
• The industrial market has reached a recovery stage on the back of a trend toward
increased capital expenditure. In addition to demand for servers continuing from the
previous fiscal year, demand and orders for factory automation are increasing, but
the Company envisages a certain level of inventory adjustment in 2H.
• With remote working having taken root, Sanken projects a strong performance with
demand for small printers continuing in addition to a trend for increasing applications
in small multi-function printers.
• The trend for increasing demand for high-definition TVs continues as demand
spreads from people spending more time at home. Furthermore, demand for new
parts used in large models is increasing and orders remain at a high level. Sanken
forecasts sales this year on a par with the second half of the previous fiscal year.
• Similarly, demand for audio continues and has entered a deadline adjustment phase.
Industrial Market
Consumer Market
Semi Devices: Market-by-Market Outlook
Sanken Electric Co., Ltd. 12
Exchange rate (Yen/US$): FY21 106.11, FY22 105.00
1H 2H Full Year 1H 2H Full Year Amount %
68.1 88.7 156.8 80.8 75.2 156.0 -0.8 -0.5
60.0 77.2 137.2 79.3 73.7 153.0 +15.8 +11.5
ー ー ー 1.5 1.5 3.0 ー ー
8.1 11.4 19.6 ― ― ― ー ー
-0.6 -0.6 -1.2 5.9 5.6 11.5 +12.7 ー
-0.7 -2.7 -3.4 5.4 5.1 10.5 +13.9 ー
-4.9 -2.1 -7.0 0.8 1.7 2.5 +9.5 ー
FY Mar. 22 Y on Y ChangesFY Mar. 21
NI attributable to controlling
shareholder
Sales
Semi Devices
Operating Profit (Loss)
Ordinary Profit (Loss)
Power Systems
Former Units
Guidance for FY March 2022
(Billions of Yen)
*Y on Y changes are calculated from the values presented
here in millions of yen
Sanken Electric Co., Ltd. 13
16.917.8 17.6 18.0
12.4
14.2
18.0
19.5 19.5 19.418.1 18.1
10.5 10.411.4
12.1
9.7
11.211.9
13.6 13.512.5 12.0 12.5
6.2 6.1 6.05.0
6.06.6 7.0 7.2 7.2 7.2
6.5 6.5
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY20 FY21 FY22 (P)
・Automotive is conceived to continue strongly in 1H. 2H includes modest adjustment risk.
・White goods for Korea will continue strongly and China is forecast to firm as the inverter conversion rate rises.
・For industrial and consumer, 2H adjustment is projected, but servers and printers will be stable.The increasing trend for TVs is expected to continue.
109.91 108.61 108.66 108.71 107.64 106.93 106.11 106.11 105.00 105.00 105.00 105.00
Semi Devices Guidance by Market
Automotive
White Goods
Industrial & Consumer
Exchange
Rate (Yen/US$)
(Billions of Yen)
Sanken Electric Co., Ltd. 14
Medium-Term Management Plan 2021 (New)
Sanken Electric Co., Ltd. 15
New Medium-Term Management Plan’s Concept and Premise for Disclosure
⚫ With regard to consolidated numerical targets, the medium-term plan
establishes KPIs focusing on profitability, growth potential, and capital
efficiency.
⚫ In terms of enhancing corporate value, the plan recognizes improving the
profitability of the “Sanken Core” and the further growth of Allegro as key tasks.
⚫ As for business strategies and future numerical targets specific to Allegro,
information is disclosed to the extent that it does not infringe on the information
controls of the US Securities and Exchange Commission (SEC), etc.
⚫ In presenting the new medium-term plan, we will start by explaining the
consolidated numerical targets from the above, spotlighting the initiatives for
the Sanken Core to attain those targets.
New Medium-Term Management Plan: Premise for Disclosure
* Sanken Core: Sanken semiconductor business excluding Allegro.
Sanken Electric Co., Ltd. 16
Overview of Medium-Term Management Plans
Medium-Term
Management Plan 2018
⚫ Execute restructuring
⚫ Launch development
reforms and growth
strategies
⚫ Allegro IPO
Medium-Term
Management Plan 2021
⚫ Complete restructuring
⚫ Realize growth
StrategiesA three-year period for completing
restructuring, including production
base reorganization, and
demonstrating results from
development reforms
2017
⚫ Begin restructuring
⚫ Capital increase
via third-party
allocation at
Allegro
• Medium-Term Management Plan 2018 and Medium-Term Management Plan 2021
continue with an integrated management strategy. Aiming to realize a recovery of the
Sanken Core over the six years they cover.
• Allegro continues to collaborate with technologies, development, and sales as a
consolidated subsidiary
Sanken Electric Co., Ltd. 17
FY18 FY19 FY20 FY21 FY22 FY23 FY24
MTMP 2018
Restructuring Phase 1
・Exit unprofitable device products・Exit non-strategic markets in unit products
・HQ early retirement program・Capital increase via third-party allocation at Allegro
・Domestic plant and overseas
subsidiary closures
・Transfer infrastructure business
・Exit LED lighting business
・Allegro IPO
Restructuring Phase 2
Development Reforms・Develop Sanken Power-electronics Platform (SPP)
・Establish overseas development bases
・Strategic partnership with STMicroelectronics
・Ishikawa Sanken: Start operations at new module plant
Finish restructuring, optimize production and realize growth strategies
via Medium-Term Management Plan (MTMP) 2021
・Complete domestic
production base
reorganization
◆
・Start of operations at Production Development Center
MTMP 2021
・Dalian Sanken: Start operations at new module plant
Production Strategies
Initiatives to Enhance Corporate Value
Restru
cturin
gG
row
th S
trategies
Sanken Electric Co., Ltd. 18
Management Vision: Our Goal
Sanken Electric Co., Ltd. 19
Core Elements of Medium-Term Management Plan 2021
Business Portfolio
Sales growth outpacing semiconductor market growth
Growth
Power Modules, Power Devices, and Sensors
KPI
FY March 2024 Consolidated Targets
• Operating profit margin: At least 13%
• Net Sales: At least 170 billion yen
• ROE: At least 12%
Sanken Electric Co., Ltd. 20
⚫ Growth in the three pillars of power modules, power devices, and sensors.
⚫ Strengthen power modules by increasing sales for automobiles and industrial equipment.
FY Mar. 2020 FY Mar. 2024 FY Mar. 2027
Automotive
Industrial
Equipment
Automotive
Industrial
EquipmentWhite Goods White Goods
White Goods
Automotive
Industrial
Equipment
Sensors
Power
Devices
Power
Modules Power
Devices
Sensors
Power
Modules
Power
Modules
Sensors
Power
Devices
Sh
are of S
alesB
y Mo
du
le Market
Business Portfolio
Sanken Electric Co., Ltd. 21
433.1516.9
2020 2023
⚫ Target sales growth outpacing market growth for Santen Group overall
⚫ Power semiconductor market headed for full-fledged uptrend on tailwinds from eco-friendly vehicles and digital transformation
64.0
46.3
26.9
137.2
2021 2024
6.5~8.5%
Automotive
CAGR
9~11%
Growth rate by market envisioned
in medium-term plan
CAGR
4~6%
CAGR
6~8%
White Goods
Industrial &
Consumer
16.920.3
2020 2023
Source: (1) Prepared by the Company based on World Semiconductor Trade Statistics (WSTS) forecast released December 2020
(2) Prepared by the Company based on Power Semiconductor Market 2020 by Yano Research Institute Ltd. .
Power semiconductor market scale (2)
CY
CAGR
6.3%
Semiconductor market scale (1)
CAGR
6.1%
CY
FY March
Growth: Scenario for Consolidated Growth in MTMP 2021
(Billions of Yen)
(Billions of USD)
(Billions of USD)
Sanken Electric Co., Ltd. 22
Sanken Core: Growth Strategies
Sanken Electric Co., Ltd. 23
2021 2022 2023 2024 2025 2026 2027
MTMP 2021: Long-term Sales Growth Outlook by Market
White Goods
Sustainable growth looks
promising via shift to white
goods with inverters
Automotive
New products for xEVs to
grow from FY March 2024
via shift to electric vehicles
Industrial
Expansion of IPM business
via joint development with
STMicroelectronics etc.
Consumer
Expansion of power
semiconductor domain
where high output/high
efficiency is leveragedFY March
MTMP 2021 Long-term outlook
Automotive
Industrial & Consumer
White Goods
*IPM: Intelligent Power Module
Sanken Electric Co., Ltd. 24
2021 2024 2027
Comfort
ADAS
xEV
ICE
0
20
40
60
80
100
120
2020 2021 2023 2025 2030
Pure EV
PHEV
HEV
48V MHV
ICE
Automotive Market
ICE
xEV
ADAS
Comfort
ICE
xEV
ADAS
Comfort
ICE
xEV
ADAS
Comfort
FY Mar.
2027FY Mar.
2024FY Mar.
2021
Source: Long-term forecast for EV market growth (2020 autumn report by FUJI KEIZAI CO., LTD.)
(Millions of
vehicles) Global Auto Market Forecast
CY FY March
⚫ Sales growth, mainly for digital ICs for ADASs and modules for xEVs
⚫ Also sustained level of sales for internal combustion engine (ICE) applications
xEV
Auto sales by application
Sanken Electric Co., Ltd. 25
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Increased adoption
Automotive Market: Power modules for Traction Motors
⚫ For power modules for EV traction motors, move up outlook for peak
sales from orders placed to 2025 as shift to EVs accelerating
⚫ Increased adoption to be major pillar for automotive module growth
⚫ Plan to release in-house modules with SiC in 2025
Orders placed
Volume outlook: Power modules for EV traction motors
Earlier peak
Initial assumption
Sanken Electric Co., Ltd. 26
67%
79% 81% 83%
0
50
100
150
200
2020 2021 2023 2026
25% 26% 28% 31%
0
50
100
150
2020 2021 2023 2026
37% 40%47%
56%
0
50
100
150
2020 2021 2023 2026
White Goods Market⚫ Expect the ratio of inverter-driven air conditioners to rise through 2026, and global market to
keep growing thereafter
⚫ Now expect the ratio of inverter-driven washing machines will rise earlier to meet growing
demand for eco-friendly models and large models
Source: Source: Company forecasts based on 2020 data from FUJI KEIZAI CO., LTD.
(M units)
Inverter driven
units ratio
Total volume
No. of inverter-driven units
CY CY CY
Global Forecast for Sales Volumes and Ratio of Inverter-Driven Units Ratio
Room air conditioners
Washing machinesRefrigerators
(M units) (M units)
No. of inverter-driven unitsNo. of inverter-driven units
Total volume
Total volume
Inverter driven
units ratioInverter driven
units ratio
Sanken Electric Co., Ltd. 27
⚫ Launch of SPP development products (platform development) to help raise profitability
・APTC and Headquarters to co-develop new processes that realize chip shrinking
・SPDC and Headquarters to co-develop new packages for next-generation IPMs
・New module plant at Ishikawa Sanken’s mixed production lines to raise investment efficiency
SPP development products’ share of IPM sales
FY Mar.
2021
FY Mar.
2024
FY Mar.
2027
APTC:Advanced Power Device Technologies SPDC: Seoul Package Design Center
White Goods Market: Expansion of SPP Development Products
Air conditioners Air conditioners Air conditioners
Washing
machines and
refrigerators,
etc.
Washing
machines and
refrigerators,
etc.
Washing
machines and
refrigerators,
etc.
SPP Development
Products
61%
SPP Development
Products
78%SPP Development
Products
0%
Sanken Electric Co., Ltd. 28
Industrial and Consumer Markets
4 8
12
17
2020 2021 2023 2025
⚫ Specialize in high-definition, large screen applications,
and other areas where more power is needed
⚫ Aim for a comeback and No. 1 share in the TV market
by lowering digital IC cost and raising sales via growth
in market share and business to other companies.
⚫ Promote joint marketing and co-develop unique products combining both companies’
technologies to expand sales for industrial applications
Global OLED TV Market Forecast
(million units)
CY
Source: Prepared by the Company based on 2020 data from FUJI KEIZAI CO., LTD.
1. Grow via Strategic Partnership with STMicroelectronics
⚫ Expand sales and sales channels via jointly developed products
Commercial air conditioning equipment, robot servo power modules
2. Cultivate New Industrial Markets via Joint Development with Allegro
3. Make a Comeback in the TV Market
Sanken Electric Co., Ltd. 29
New Products’ Share of Sales
⚫ Set a target line of at least 15% for new products’ share of sales.
⚫ To exceed 25% temporarily as the results of development under MTMP 2018 materialize
during MTMP 2021. Even after that, will maintain at 15% or higher.
10%
22%
28%
'21 '22 '23 '24 '25 '26 '27
New products’ share of sales
NewProducts
MTMP 2021
Existing
Products
Keep at 15% or higher
Minimum
target line
15%
FY March
Measures to improve profit
Design
・Chip shrinking
・Standardize/change materials
・Reduce the number of components
Production
・Build mixed production lines
・Promote automation via inspection imaging utilizing IoT
・Raise productivity via equipment management utilizing AI
・Thoroughly automate transport*New products are defined as products released within 3 years for automotive and 1.5 years for other
applications, and include customized products besides SPP development products.
Gross margin: At least 22% in principle
Condition for starting development
Sanken Electric Co., Ltd. 30
Acceleration of Development ReformsAccelerate PDCA Cycle at 3 Centers to Cut Development Cycle in Half
Package Lab Area: Development of elemental technologies for new products and consistent inspection of prototypes
Product Inspection Area: Inspection of newly developed products
Development Area: Development and production departments work together to
design products
ボ
Product evaluation
and analysis
New product planning
and development
Development System
Pilot Line Area: Development of automated production lines for smart factories and high-mix lines, pre-production inspections
Imaging IoT Development Area: Development of automated sensory inspections using AI and highly complex images
Evaluation and
Analysis Center
・Mobilize production staff and
technology
・Realize new products via
platform developmentProduction
Development Center
Technical Center
Sanken Electric Co., Ltd. 31
Acceleration of Development Reforms
・R&D and planning for elemental
technologies for new production lines
and new products
・New production development
・Follow-up on new production line startups・Promote worksite introduction of AI, IoT,
and other digital transformation technologies・Advance steps to improve productivity
・Manage and maintain stable production
・Improve costs and yields
Production Development Center(Headquarters)
Advanced Technology Promotion Center(established on the premises of Ishikawa Sanken)
Brings together production technology engineers to improve SPP development efficiency faster
Established as a headquarters organization to advance steps to reform production lines
Ensure stable production, raise productivity, enhance efficiency of cost reductions
Sanken Group Plants(Ishikawa, Yamagata, Fukushima, Dalian)
・ Put the Production Development Center at the core of further accelerating the finishing up of development reforms
・ Establish a system to maintain a new product ratio of at least 15%
Concrete results from development reforms: Platform development products
・IPMs for motor-driven compressors for car air conditioners
・Power modules for EV traction motors
・Next-generation IPMs for white goods
Sanken Electric Co., Ltd. 32
To Realize Growth Strategies
Sanken Electric Co., Ltd. 33
Reorganization Aiming to Realize Growth Strategies
⚫ Marketing Headquarters
Create new products matching market needs via more marketing-oriented technology development
⚫ Power module Headquarters, Power Device Headquarters
Customer-focused, integrated production and sales framework emphasizing supply chains
⚫ Business Promotion Headquarters
Unifying organization, with shared functions of development and profitability management, quality control, and materials procurement
Marketing Headquarters
Power module Headquarters
Power Device Headquarters
Portfolio rebuilding, organizational frameworks to realize growth and profitability
Sem
iconducto
r
Busin
ess C
orp
ora
te
Headqua
rters
Busin
ess P
rom
otio
n
Headqua
rters
Sanken Electric Co., Ltd. 34
• Expansion of the scope of performance-linked compensation to upper management,
establishment of operating income, ROE, and TSR (total shareholder returns) as KPIs
• Invitation of external director candidates with corporate management experience
Initiatives for ESG and SDGs
Environment
Social
Governance
• Development of technologies and products that help preserve the global environment
-Reduction of CO2 (energy-saving technologies for shift to xEVs, white goods)
-Enhancement of water use efficiency (develop IPMs for water-saving washing machines)
• Promotion of carbon offset via the use of clean energy
• Work style reforms, strengthening of organizational and personnel development
• Development of personnel with digital skills for advancing digital transformation
• Promotion of diversity: -Appointment of female employees, non-Japanese employees, and mid-career
hires to core positions
Key societal issues to which
we contribute (Materiality) Contributions to CO2 reductions through promotion of
main business (energy conservation/greater efficiency)
Efforts to reduce environmental impact
Sanken Electric Co., Ltd. 35
Financial Results Presentation Fiscal Year ended March 31, 2021
Sanken Electric Co., Ltd. 36
This presentation contains forward-looking statements with respect to the Company’s and its group affiliates’ future
results, plans and policies, strategies, performance goals and scheduled targets, and the management’s views and
judgments that are not yet firmly established facts. These forward-looking statements are formed based on the
currently available information and assumptions deemed reasonable at present, and conditional upon known and
unknown risks, uncertainties and many other factors. These risks, uncertainties and many other factors could cause
actual results to be materially different from any future results that may be expressed or implied by such forward-
looking statements. The Company does not undertake any obligation to update or revise any forward-looking
statements, including, but not limited to, revisions of financial result forecast, unless the Company is enforced to do so
by the provisions of applicable laws and regulations.
The electronics industry to which the Company belongs is constantly exposed to rapid changes in business
environment and the Company’s business performance and financial conditions are subjected to risks, uncertainties
and other factors, which include, but not limited to, (i) macroeconomic environment, market demand and supply
situations, and competitive conditions, (ii) fluctuations in the exchange rates, (iii) success or failure to catch up with
technological innovation, (iv) rising prices and availability constraints of parts, supplies and materials, (v) changes in
legal framework of various nations and political sub-divisions or sudden changes of social circumstances, and (vi) any
other contingencies.
Notice on Forward-looking Statement