Slide 1: Financial Summary for FY2018 and Projections for FY2019
Financial Summary for FY2018 And Projections for FY2019 May 2019 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 2: Index
May 2019 INDEX 01 Financial Summary for FY2018 02 Performance Forecast for FY2019 03 Progress Status of “Medium-Term Management Plan 2019” Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 2
Slide 3: Financial Summary for FY2018
May 2019 01 Financial Summary for FY2018 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 3
Slide 4: Financial Summary
May 2019 01 Financial Summary Unit: JPY billion ■ Main Points Change (1) Orders FY2017 FY2018 ・Recorded a historical high. ・YoY increases, except for ships. Orders 864.0 952.2 88.2 ・Construction machinery and environmental facilities & plants did well. Net Sales 791.0 903.1 112.0 ・Machinery componen
Slide 5: Operating Income by Segment
May 2019 01 Operating Income by Segment Unit: JPY billion Comparison with Previous Fiscal Year FY2017 FY2018 Change ＜Machinery components＞ Machinery The market for small-to-medium scale gear reducers was strong and the consolidation of businesses (Lafert Group) components 11.8 11.1 (0.8) into the
Slide 6: Analysis of Changes in Operating Income
May 2019 01 Analysis of Changes in Operating Income Unit: JPY billion Effect of exchange rates Selling & administrative expenses Other Effect of profit increases FY2017 FY2018 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 6
Slide 7: Consolidated Balance Sheet
May 2019 01 Consolidated Balance Sheet Unit: JPY billion March March March March Change Change 2018 2019 2018 2019 Current Assets 551.6 583.6 32.0 Liabilities 449.9 489.1 39.2 Notes and accounts Cash and deposits 88.2 73.6 (14.6) payable 184.2 188.1 3.8 Notes and accounts Advanced payments receivabl
Slide 8: Consolidated Cash Flow Statement
May 2019 01 Consolidated Cash Flow Statement ■ Acceleration of active investments ■ Increase in FCF despite deterioration of operating CF due to an increase in working capital resulting from increased sales. Unit: JPY billion Category FY2017 FY2018 Change Operating Activities 71.1 55.2 (15.9) Income
Slide 9: Overseas Sales by Regional Segment
May 2019 Ref. Overseas Sales by Regional Segment Unit：JPY billion Total Hydraulic Excavators FY2017 FY2018 FY2017 FY2018 (April - March) (April - March) (April - March) (April - March) Sales Sales Ratio Sales Sales Ratio Sales Sales Ratio Sales Sales Ratio North America 118.5 15.0% 139.0 15.4% 34.1
Slide 10: Performance Forecast for FY2019
May 2019 02 Performance Forecast for FY2019 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 10
Slide 11: Performance Forecast for FY2019
May 2019 02 Performance Forecast for FY2019 ■Net sales increased as the environment for new orders remained strong. ■Operating income declined due to increased investments and worsening market conditions for mass-produced machinery Unit: JPY billion Actual FY2017 Actual FY2018 Forecast FY2019 Orders
Slide 12: Machinery Components
May 2019 02 Machinery Components FY2018：Both orders and sales increased due to the strength of the market for small-to-medium scale gear reducers and the consolidation of Lafert Group companies into the SHI Group as subsidiaries through M&A. Active investments such as establishment of a gear reducer
Slide 13: Precision Machinery
May 2019 02 Precision Machinery ＜Plastic Machinery＞ FY2018: High demand levels for electrical and electronics-related products continued in China and demand in Europe remained strong. This led to increases in both orders and sales. FY2019: Because of slightly severe market conditions, we project dem
Slide 14: Construction Machinery
May 2019 02 Construction Machinery ＜Hydraulic Excavators＞ FY2018：Demand increased abroad, such as in China and North America, and this led to an increase in both orders and sales. High capacity utilization continued at our plants in Japan, China and Indonesia. FY2019：Demand will be slightly weak in
Slide 15: Industrial Machinery
May 2019 02 Industrial Machinery FY2018: As demand for material handling equipment from the electric utility and steel industries was strong, both orders and sales increased. Although orders for other equipment models fell due to a decrease in demand for industrial turbines, sales increased because
Slide 16: Ships
May 2019 02 Ships FY2018：The market for vessels continued to be stagnant. In the current fiscal year, we received orders for three new vessels, one vessel less than in the previous fiscal year. Although we delivered four vessels, one vessel less than in the previous fiscal year, sales increased year
Slide 17: Environmental Facilities and Plants
May 2019 02 Environmental Facilities and Plants FY2018： Both orders and sales increased in the energy plant business due partially to an increase in orders for biomass-fueled power generation plants and the consolidation of SFW into our energy plant business in the previous fiscal year. In the water
Slide 18: Performance Forecast for FY2019 by Segment
May 2019 02 Performance Forecast for FY2019 by Segment Unit: JPY billion Actual FY2017 Actual FY2018 Forecast FY2019 Machinery Components Orders 115.1 134.2 135.0 Net Sales 109.4 133.4 135.0 Operating Income (Ratio) 11.8 10.8% 11.1 8.3% 11.0 8.1% Precision Machinery Orders 190.5 191.6 180.0 Net Sale
Slide 19: Progress Status of Medium-Term Management Plan 2019
May 2019 Progress Status of “Medium-Term 03 Management Plan 2019” Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 19
Slide 20: Progress Status of MTMP19 (Overall) Numerical targets
May 2019 03 Progress Status of “MTMP19” (Overall) Actual Forecast Plan “MTMP19” Plan FY2017 FY2018 FY2019 Numerical targets Net sales:JPY800 billion JPY791.0 b JPY903.0 b JPY905.0 b FY2019 8.8% 8.3% 8.0% Operating Income Ratio:7.5％ JPY69.9 b JPY75.2 b JPY72.0 b ROIC: 7.5% or more 10.3％ 10.2% 9.5% Di
Slide 21: Progress Status of MTMP19
May 2019 03 Progress Status of “MTMP19” ■Business environments are generally robust around the world and goals of MTMP19 that were raised in October 2018 are projected to be achieved. Sales Operating income & JPY income ratio 1000.0 billion 100.0 JPY 10.0% billion Oct. 2018 Actual Oct. 2018 Forecast
Slide 22: Progress Status of MTMP19 (Basic Policy)
May 2019 03 Progress Status of “MTMP19” (Basic Policy) Basic Policy Initiatives Achieve growth globally (especially for mass produced machinery) 1. Achieve “Steady Growth” Accelerate new product development and their introduction to the marketplace Undertake investments (R&D/CAPEX/personnel) accordi
Slide 23: Basic Policy 1: Growth of Overseas Sales
May 2019 03 Basic Policy 1 Growth of Overseas Sales Overseas Sales by Regional Segment Overseas Sales by Segment Unit: JPY billion Unit: JPY billion 1,000 100% 600 North 500 Environmental 800 Ratio of America Facilities & Plants overseas sales Ships (right axis) Industrial Europe 400 Machinery 600 A
Slide 24: Basic Policy 2: Investment (Capital Investments / R&D)
May 2019 03 Basic Policy 2 Investment (Capital Investments / R&D) ・Capital investments are made with a focus on areas with growth potential, such as gear reducers and injection molding machines. ・As for development investments, new products will be developed in relation to equipment models whose sal
Slide 25: Global Expansion/Investments: Fourth Plant in Vietnam
May 2019 03 Basic Policies 1 and 2 <Global Expansion/Investments> We established the fourth plant in Vietnam to produce gear reducer parts (March 2019) ・Processes and produces main parts of gear reducers for precision control that are used at joints of industrial robots, and provides such parts to a
Slide 26: Basic Policy 3: Trends in Sales of After Sales Services
May 2019 03 Basic Policy 3 Trends in Sales of After Sales Services Unit: JPY billion 150 100 50 0 FY2014 FY2015 FY2016 FY2017 FY2018 Forecast FY2019 <Actual results for FY2018> ・YoY increase due to the consolidation of SFW, etc. into the Group ・Steady increase in terms of existing models as well <FY
Slide 27: Active Utilization of System Technology: i-Connect
May 2019 03 Basic Policy 3 <Promotion of Active Utilization of System Technology> We have released “i-Connect,” a production quality management system for injection molding machines ・Application that integrates information from molding machines, peripheral devices and various sensors to build IoT so
Slide 28: Basic Policy 4: Active M&A, Acquisition of Lafert
May 2019 03 Basic Policy 4 <Active M&A> ■Acquisition of Italy-based Lafert S.p.A. (May 2018) <Objectives> Strengthen businesses and improve presence by using Europe (that plays a leading role to drive technologies and markets) as a starting point in target fields for the PTC business, including “rob
Slide 29: State of New Consolidated Companies
May 2019 03 Basic Policy 4 State of New Consolidated Companies Unit：JPY billion Actual FY2017 Actual FY2018 Segment New Consolidated Companies Orders Net Sales Orders Net Sales Machinery component Lafert Group － － 14.5 16.4 Precision machinery Persimmon Technologies 1.1 1.0 1.2 1.5 Construction Sumi
Slide 30: Active Promotion of CSR
May 2019 03 Basic Policy 5 Active Promotion of CSR Actual Results for FY2018 Issues for FY2019 ・ Discussed with 15 departments (in cumulative Products/ ・ Summarize discussions with departments to total) services define materiality of the Group ・ Established CSR policy (slogans, indices) ・ Reduce CO2
Slide 31: Recurrence Prevention Measures for Improving Work Quality
May 2019 03 Basic Policy 3 Recurrence Prevention Measures for Improving Work Quality We deeply apologize for the great inconvenience caused to parties concerned and will make every effort to regain your trust by reliably implementing recurrence prevention measures. In addition, the progress of recur
Slide 32: Forward-looking statements notice
May 2019 Forecasts and outlooks concerning future results are considered by the Company to be reasonable based on information available at the time of publication. Actual results may vary from the above forecast and outlook because of a variety of factors. Copyright © Sumitomo Heavy Industries, Ltd.