Sumitomo Heavy Industries, Ltd. · TSE:6302

Sumitomo Heavy Industries — FY2022 Earnings Presentation

44 slides from Sumitomo Heavy Industries's earnings presentation, Feb 13, 2023

Slide 1: Financial Summary for FY2022
Financial Summary for FY2022 Performance Forecast for FY2023 and Progress of “Medium-Term Management Plan 2023” 2023/2/13 社長下村 President 真司 Shinji Shimomura Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 2: INDEX
2023/2/13 INDEX 01 Financial Summary for FY2022 02 Performance Forecast for FY2023 03 Progress of “Medium-Term Management Plan 2023” 04 Promoting Sustainability Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 2
Slide 4: Change in Fiscal Year End (Reproduction of Announcement Made in May 2022)
2023/2/13 01 Change in Fiscal Year End (Financial Year End) (Reproduction of Announcement Made in May 2022) [Earnings results for FY2022] Starting from the fiscal year (ended December 31, 2022) under review, the financial year end is December 31. This fiscal year (FY2022), which is a transition peri
Slide 5: Financial Summary for FY2022
2023/2/13 01 Financial Summary for FY2022 Orders: JPY984.7 billion Actual FY2022 Net sales: JPY854.1 billion Operating profit: JPY44.8 billion / Current profit: JPY5.8 billion - Orders: Demand for machinery was strong and orders increased in all segments. - Net sales: Increased in all segment except
Slide 6: Financial Summary for FY2022
2023/2/13 01 Financial Summary for FY2022 Domestic Overseas *1 9 months Apr. - Dec. 2021/2022 12 months Apr. - Dec. 2021/2022 *2 12 months Apr. 2021 - Mar. 2022 12 months Jan. - Dec. 2021 The same applies hereinafter to all tables FY2022*1 Change FY2021*1 Comparison with Actual Latest forecast Year-
Slide 7: Performance by Segment for FY2022
2023/2/13 01 Performance by Segment for FY2022 Orders Net sales Operating profit FY2021*1 FY2022*1 FY2021*1 FY2022*1 FY2021*1 FY2022*1 Actual Actual Change Change Change Actual Actual Actual Actual /Operating profit ratio /Operating profit ratio Unit: JPY billion (%) (%) Mechatronics 178.0 204.1 26.
Slide 8: Analysis of Changes in Operating Profit for FY2022
2023/2/13 01 Analysis of Changes in Operating Profit for FY2022 Unit: JPY billion Effect of sales Effect of Selling & Others increases exchange rates administrative expenses <Effect of sales increases by segment> Unit: JPY billion <Selling & administrative expenses> Sales transportation expenses, pe
Slide 9: Recording of Extraordinary Losses in FY2022
2023/2/13 01 Recording of Extraordinary Losses in FY2022 Timing of Amount of Location of Expense item Details of loss Amount of loss acquisition/inve acquisition/inve Segment head office stment stment 1. Non-current assets including goodwill JPY17.7 billion June 2017 JPY22.8 billion Netherlands Ener
Slide 10: Consolidated Balance Sheet (Assets)
2023/2/13 01 Consolidated Balance Sheet (Assets) Unit: JPY billion March 2022 December 2022 Change ■Total assets: Current Assets Largely affected by an increase in inventories 648.1 711.4 63.3 resulting from a rise in orders. Cash and deposits 88.8 97.5 8.7 Notes and accounts ■Notes and accounts rec
Slide 11: Consolidated Balance Sheet (Liabilities and Net Assets)
2023/2/13 01 Consolidated Balance Sheet (Liabilities and Net Assets) March 2022 December 2022 Change Unit: JPY billion Liabilities 528.1 571.9 43.9 ■Notes and accounts payable – trade: Notes and accounts payable Increased due to increased sales. - trade 172.6 186.3 13.7 Interest-bearing debts 111.3
Slide 12: Consolidated Cash Flows Statement
2023/2/13 01 Consolidated Cash Flows Statement Unit: JPY billion ■Cash flows from operating activities: Item FY2022 Inventories increased, although notes and accounts Operating Activities 21.4 receivable decreased. Profit before income taxes 17.8 Depreciation & amortization 29.6 ■Cash flows from inv
Slide 14: Performance Forecast for FY2023
2023/2/13 02 Performance Forecast for FY2023 Orders : JPY1,080.0 billion Forecast FY2023 Net sales: JPY1,050.0 billion Operating profit: JPY64.0 billion / Current profit: JPY38.0 billion - Orders: Despite the assumption of strong markets, orders are expected to decrease in all segments as a result o
Slide 15: Performance Forecast for FY2023
2023/2/13 02 Performance Forecast for FY2023 Domestic Overseas *1 9 months Apr. - Dec. 2021/2022 12 months Apr. - Dec. 2021/2022 *2 12 months Jan. 2022/2023 - Dec. 2022/2023 12 months Jan. - Dec. 2022/2023 *3 12 months Apr. 2021 - Mar. 2022 12 months Jan. - Dec. 2021 The same applies hereinafter to
Slide 16: Analysis of Changes in Operating Profit for FY2022/2023
2023/2/13 02 Analysis of Changes in Operating Profit for FY2022/2023 Unit: JPY billion Actual Effect of sales Effect of Selling & Other FY2023 FY2022 (12 mos.) increases exchange rates administrative Forecast expenses <Effect of sales increases by segment> Unit: JPY billion <Others> Mechatronics 1.0
Slide 17: Performance Forecast by Segment for FY2023
2023/2/13 02 Performance Forecast by Segment for FY2023 Orders Net sales Operating profit Actual (Ref.) Actual Forecast (Reference) (Reference) Actual Forecast Actual Forecast FY2022*1 FY2022*2 FY2023*2 Actual Actual FY2022*1 FY2023*2 FY2022*1 FY2023*2 (22.4-22.12) (22.1-22.12) (23.1-23.12) FY2022*2
Slide 18: Mechatronics
2023/2/13 02 Mechatronics FY2022*1: Orders, sales and operating profit all increased due to a strong demand for small-to- medium sized gear reducers, precision gears for robot articulations and inverters in Japan, Europe and the US. Operating profit increased due to growth in sales. FY2023*2: Market
Slide 19: Mechatronics
2023/2/13 02 Mechatronics Orders Net sales Operating profit (left scale) Profit Unit: JPY billion ratio (right scale) 3-4Q 1-2Q Full year <Reference> Gear reducer business : Sales contribution ratio by model (approximate numbers) For use in Gear motor Gear box precision Electric Service Total (middl
Slide 20: Industrial Machinery
2023/2/13 02 Industrial Machinery <Plastics machinery> *1 FY2022 : Orders decreased due to the cooling of demand from China and Europe, which had been strong in the previous year. However, sales increased due to a backlog of orders. Meanwhile, operating profit decreased due partly to higher prices o
Slide 21: Industrial Machinery
2023/2/13 02 Industrial Machinery Orders Net sales Operating profit (left scale) Unit: JPY billion Profit ratio (right scale) 3-4Q 1-2Q Full year <Reference> - Sales mix of injection molding machines by segment (approximate numbers) - Business performance for semiconductor production equipment (ion
Slide 22: Logistics & Construction
2023/2/13 02 Logistics & Construction <Hydraulic excavators> *1 FY2022 : Orders and sales increased due to strong demand from Japan and North America, although demand from the Chinese market significantly decreased because of the economic downturn and lockdowns in the country. Operating profit decre
Slide 23: Logistics & Construction
2023/2/13 02 Logistics & Construction Orders Net sales Operating profit (left scale) Profit ratio Unit: JPY billion (right scale) 3-4Q 1-2Q Full year <Reference> - Industrial cranes: order mix by segment (approximate numbers) Electricity Steel Shipbuilding Ports Others Total - Hydraulic excavators:
Slide 24: Energy & Lifelines
2023/2/13 02 Energy & Lifelines *1 FY2022 : Orders and sales in the energy plant business decreased partly because fewer orders were received for large- scale projects for biomass-fueled power generation plants than last year, and profit decreased due to declining profit margins of large-scale proje
Slide 25: Energy & Lifelines
2023/2/13 02 Energy & Lifelines Orders Net sales Operating profit (left scale) Profit ratio Unit: JPY billion (right scale) 3-4Q 1-2Q Full year <Reference> - Energy plant business: main projects for which orders were received Planned timing of Customer Construction site Boiler type* operation start
Slide 27: Medium-Term Management Plan 2023: Changes in the Business Environment
2023/2/13 03 “Medium-Term Management Plan 2023”: Changes in the Business Environment Factoring-in of external environments Impact on business Business issue Response Factored in when MTMP 23 was formulated Increase in Revise prices to ensure - Rapid progress of ESG action production costs profits -
Slide 28: Implementation Status of the Basic Policy
2023/2/13 03 “Medium-Term Management Plan 2023”: Implementation Status of the Basic Policy Basic policy Specific developments ■Actively made capital investments in growth areas and conducted research & development activities 1. Develop a robust entity ■Expanded the after-sales service business ■Carr
Slide 29: Creating Synergy between New Segments
2023/2/13 03 “Medium-Term Management Plan 2023”: 2-(1): Creating Synergy between New Segments Official establishment of segments After reviewing the reporting segments at the start of the current Medium-Term Management Plan, we officially established new segments in January 2023. A segment is not on
Slide 30: Key Development Areas
2023/2/13 03 “Medium-Term Management Plan 2023”: 4-(2) Key Development Areas Key areas Development targets Actual FY2022 ■New anaerobic treatment technology for which the speed at which high-concentration fats and oils are broken down was significantly improved, and desulfurization and Develop envir
Slide 31: Energy Storage System
2023/2/13 03 “Medium-Term Management Plan 2023”: 4-(2) Energy Storage System Start of the first commercial demonstration operation for LAES in Japan - In collaboration with Hiroshima Gas Co., Ltd., we constructed a commercial demonstration plan for Liquid Air Energy Storage (hereinafter “LAES” *1, 2
Slide 32: Medium-Term Management Plan 2023: Financial Targets
2023/2/13 03 “Medium-Term Management Plan 2023”: Financial Targets ◼ Financial targets ■Orders: Actual Actual The plan is expected to be exceeded Actual Target Target Forecast FY2022 FY2022 because of a solid environment for FY2021 FY2023 FY2023 FY2023 Unit: JPY billion (9 months) (12 months) (As of
Slide 33: Target Values by Segment
2023/2/13 03 “Medium-Term Management Plan 2023”: Target Values by Segment Orders Net sales Operating profit Target Forecast Target Forecast Forecast FY2023 Target FY2023 (As of February FY2023 FY2023 FY2023 FY2023 (As of May 2022) 2023) (As of May (As of February (As of May (As of February /Operatin
Slide 35: Promoting Sustainability
2023/2/13 04 Promoting Sustainability Actual FY2022 Issue - Selected as a component of the ESG investment index “FTSE Blossom Japan Sector Relative Index” (increased non-financial - Promote CSV to improve social value information disclosure) - Strengthen measures to respond to material issues of Ove
Slide 36: E (Environment): Response to Climate Change
2023/2/13 04 <E (Environment): Response to Climate Change> ◼ Reduction in Scopes 1 and 2 Reduction of CO2 emissions from our group - Started procurement of renewable energy Scope1 and 2 - Made settings for internal carbon pricing and started to manage the related 50% reduction from the 2019 level -
Slide 37: S (Social): Human Rights Policy, LGBT Measures and Work Style Reformation
2023/2/13 04 <S (Social): Formation of a Human Rights Policy, LGBT Measures and Work Style Reformation> ■ Formulation of a human rights policy • Purpose: In response to the increasing international awareness of human rights, declare the responsibility of not only employees but also the entire supply
Slide 38: G (Governance): Board of Directors' Effectiveness Assessment Results
2023/2/13 04 <G (Governance): Taking into Account the Board of Directors’ Effectiveness Assessment Results> Toward further improved governance Issue 1: Composition and ideal state of the Board of Directors → One female director is planned to be appointed at a general meeting of shareholders in March
Slide 40: Changes in Financial Values (Consolidated)
2023/2/13 Ref. Changes in Financial Values (Consolidated) ◼ Changes in Orders/Sales/Operating Profit Unit: JPY billion ◼ Changes in ROIC Orders Net sales Operating profit (Ref.) Changes in ROE Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 40
Slide 41: Segment Breakdown and Semiconductor-Related Sales
2023/2/13 Segment Breakdown (Plastics Machinery and Hydraulic Excavators) Ref. Sales of the Semiconductor-Related Product Business Unit: JPY billion Plastics machinery Hydraulic excavators 3-4Q 1-2Q Orders Net sales Orders Net sales Full year Products for semiconductor production that we possess and
Slide 42: Capital Investment, Depreciation, R&D, Personnel, Forex Sensitivity
2023/2/13 Ref. Capital Investment, Depreciation Cost, Research & Development Cost, Personnel, Forex Sensitivity Unit: JPY billion Capital *Actuals are based on cash flow. Depreciation & Research & *Actuals are based 3-4Q investment* Forecast is based on budget. amortization development cost* on P/L.
Slide 43: Sales by Regional Segment
2023/2/13 Ref. Sales by Regional Segment Actual FY2022*1 (2022.4-2022.12) <Exchange rate: JPY133 per US dollar> North America Europe Asia (Excluding China Others Overseas total Japan Total sales Unit: JPY billion China) Mechatronics 43.3 43.5 17.9 17.7 13.5 136.0 45.4 181.4 (plastics machinery) 12.7
Slide 44: Forward-looking statements
2023/2/13 All forward-looking statements regarding the company’s future performance are based on information currently available to Sumitomo Heavy Industries and determined subjectively. Future performance is not guaranteed and all information related to future performance contained herein is subjec

Sumitomo Heavy Industries — FY2022 Earnings Presentation on 6ix

Sumitomo Heavy Industries — FY2022 Earnings Presentation

Slide 1: Financial Summary for FY2022

Slide 2: INDEX

Slide 3: Financial Summary for FY2022

Slide 4: Change in Fiscal Year End (Reproduction of Announcement Made in May 2022)

Slide 5: Financial Summary for FY2022

Slide 6: Financial Summary for FY2022

Slide 7: Performance by Segment for FY2022

Slide 8: Analysis of Changes in Operating Profit for FY2022

Slide 9: Recording of Extraordinary Losses in FY2022

Slide 10: Consolidated Balance Sheet (Assets)

Slide 11: Consolidated Balance Sheet (Liabilities and Net Assets)

Slide 12: Consolidated Cash Flows Statement

Slide 13: Performance Forecast for FY2023

Slide 14: Performance Forecast for FY2023

Slide 15: Performance Forecast for FY2023

Slide 16: Analysis of Changes in Operating Profit for FY2022/2023

Slide 17: Performance Forecast by Segment for FY2023

Slide 18: Mechatronics

Slide 19: Mechatronics

Slide 20: Industrial Machinery

Slide 21: Industrial Machinery

Slide 22: Logistics & Construction

Slide 23: Logistics & Construction

Slide 24: Energy & Lifelines

Slide 25: Energy & Lifelines

Slide 26: Progress of Medium-Term Management Plan 2023

Slide 27: Medium-Term Management Plan 2023: Changes in the Business Environment

Slide 28: Implementation Status of the Basic Policy

Slide 29: Creating Synergy between New Segments

Slide 30: Key Development Areas

Slide 31: Energy Storage System

Slide 32: Medium-Term Management Plan 2023: Financial Targets

Slide 33: Target Values by Segment

Slide 34: Promoting Sustainability

Slide 35: Promoting Sustainability

Slide 36: E (Environment): Response to Climate Change

Slide 37: S (Social): Human Rights Policy, LGBT Measures and Work Style Reformation

Slide 38: G (Governance): Board of Directors' Effectiveness Assessment Results

Slide 39: Reference Materials

Slide 40: Changes in Financial Values (Consolidated)

Slide 41: Segment Breakdown and Semiconductor-Related Sales

Slide 42: Capital Investment, Depreciation, R&D, Personnel, Forex Sensitivity

Slide 43: Sales by Regional Segment

Slide 44: Forward-looking statements