Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2017 Earnings Presentation
27 slides from Sumitomo Heavy Industries's earnings presentation, May 2018
Slide 1: Financial Summary for FY2017 and Projections for FY2018
Financial Summary for FY2017 And Projections for FY2018 May 2018 Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 1
Slide 2: INDEX
May 2018 INDEX 01 Financial Summary for FY2017 02 Performance Forecast for FY2018 03 Progress Status of “Medium-Term Management Plan 2019” Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 2
Slide 3: Financial Summary for FY2017
May 2018 01 Financial Summary for FY2017 Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 3
Slide 4: Financial Summary
May 2018 01 Financial Summary Unit: JPY billion ■ Main Points FY2016 FY2017 Change (1) Orders ・Recorded a historical high. ・YoY increases, except for industrial Orders 711.1 864.0 152.9 machinery. ・Mass-produced machinery such as Net Sales 674.3 791.0 116.7 construction machinery, machinery componen
Slide 5: Operating Income by Segment
May 2018 01 Operating Income by Segment Unit: JPY billion Comparison with Previous Fiscal Year FY2016 FY2017 Change ＜Machinery components＞ The market for small-to-medium scale and precision gear Machinery reducers for robots is strong; the market for large scale components 9.1 11.8 2.7 gear reduce
Slide 6: Consolidated Balance Sheet
May 2018 01 Consolidated Balance Sheet Unit: JPY billion March March March March Change Change 2017 2018 2017 2018 Current Assets 507.6 564.8 57.2 Liabilities 387.3 450.6 63.3 Notes and accounts Cash and deposits 63.8 88.2 24.4 payable 147.3 184.2 36.9 Notes and accounts Advanced payments receivable
Slide 7: Consolidated Cash Flow Statement
May 2018 01 Consolidated Cash Flow Statement Significant increase in operating CF due to improvements in working capital. Active approach to investments Unit: JPY billion Category FY2016 FY2017 Change Operating Activities 38.2 71.1 33.0 Income before income taxes 47.3 52.7 5.4 Depreciation 20.3
Slide 8: Overseas Sales by Regional Segment
May 2018 Ref. Overseas Sales by Regional Segment Unit：JPY billion Total Hydraulic Excavators FY2016 FY2017 FY2016 FY2017 (April - March) (April - March) (April - March) (April - March) Sales Sales Ratio Sales Sales Ratio Sales Sales Ratio Sales Sales Ratio North America 107.9 16.0% 118.5 15.0% 28.9
Slide 9: Performance Forecast for FY2018
May 2018 02 Performance Forecast for FY2018 Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 9
Slide 10: Performance Forecast for FY2018
May 2018 02 Performance Forecast for FY2018 ■Net sales increased as the environment for new orders remained strong. ■Operating income declined due to a stronger yen and rising costs. Unit: JPY billion Actual FY2016 Actual FY2017 Forecast FY2018 Orders 711.1 864.0 870.0 Net Sales 674.3 791.0 850.0 Op
Slide 11: Machinery Components
May 2018 02 Machinery Components FY2017: The market for medium-to-small scale and precision gear reducers was strong and the large scale models are trending towards recovery. The domestic large scale gear reducer business was integrated with Sumitomo Heavy Industries Gearbox. We continued to invest
Slide 12: Precision Machinery
May 2018 02 Precision Machinery ＜Plastic Machinery＞ FY2017: High demand levels continued with strong demand coming from Europe and increased demand for electrical and electronics-related products in China. We released our new all-electric injection molding machine in the European markets which we de
Slide 13: Construction Machinery
May 2018 02 Construction Machinery ＜Hydraulic Excavators＞ FY2017: Demand increased in Japan and abroad, such as in China and North America. We launched the sale of our new hydraulic excavator model conforming to the 2014 emission control regulation standards in Japan. Operations at our plants in Chi
Slide 14: Industrial Machinery
May 2018 02 Industrial Machinery FY2017: Although orders for material handling equipment fell, orders for forging presses and others increased. Although sales of medical-related equipment increased, sales of material handling equipment and turbines decreased. FY2018: Turbines are trending towards re
Slide 15: Ships
May 2018 02 Ships FY2017: The market for new vessels continued to be stagnant. We received orders for four vessels, one vessel more than in the previous fiscal year and delivered five vessels, two vessels more than in the previous fiscal year. FY2018: The market for new vessels is in a secular perio
Slide 16: Environmental Facilities and Plants
May 2018 02 Environmental Facilities and Plants FY2017: Orders increased with the consolidation of Sumitomo SHI FW (“SFW”) into our energy plant business in the second-half. Domestic orders also increased for biomass-fueled power generation plants. Orders for the water treatment plant business decre
Slide 17: Performance Forecast for FY2018 by Segment
May 2018 02 Performance Forecast for FY2018 by Segment Unit: JPY billion Actual FY2016 Actual FY2017 Forecast FY2018 Orders 97.4 115.1 115.0 Machinery Net Sales 98.6 109.4 117.0 Components Operating Income 9.1 11.8 12.5 Orders 154.7 190.5 180.0 Precision Machinery Net Sales 145.7 169.4 183.0 Operati
Slide 18: Progress Status of Medium-Term Management Plan 2019
May 2018 03 Progress Status of “Medium-Term Management Plan 2019” Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 18
Slide 19: Progress Status of MTMP19 (Overall)
May 2018 03 Progress Status of “MTMP19” (Overall) ・We will further promote investment in areas such as gear reducers and injection molding machines. Actual Forecast Plan “MTMP19” Plan FY2017 FY2018 FY2019 Numerical targets FY2019 Net sales:JPY800 billion JPY791.0 b JPY850.0 b JPY860.0 b Operating In
Slide 20: Progress Status of MTMP19 (Basic Concept)
May 2018 03 Progress Status of “MTMP19” (Basic Concept) Basic Concept Specific Developments Achieve growth globally (especially for high-volume products) 1. Achieve “Steady Growth” Accelerate new product development and their introduction to the marketplace Undertake investments (development/plant &
Slide 21: Basic Concept: Growth of Overseas Sales
May 2018 03 Basic Concept 1 Growth of Overseas Sales Overseas Sales by Regional Segment Overseas Sales by Segment JPY billion 1,000 100% JPY billion 600 800 Environmental North Facilities & America Plants Europe 400 Ships 600 Asia (Excluding China) Industrial Machinery 50% China 400 Construction Oth
Slide 22: Basic Concept: Investment (Capital Investments / R&D)
May 2018 03 Basic Concept 2 Investment (Capital Investments / R&D) JPY billion JPY billion 50 50 Capital Investments R&D Expenses 40 40 30 30 Others Others 20 20 Growth & High Growth & High Profitability Profitability 10 10 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2014 FY2015 FY2016 FY2017 FY2018 pr
Slide 23: R&D Investment: Injection Molding Machine New Product
May 2018 03 R&D Investment <Injection Molding Machine New Product> ・Developed for the European markets based on SHI’s electronic control technology; launched in May 2017 ・The most recent model of the “IntElect” series of all-electric injection molding machines by Demag ・Excellent for precision moldi
Slide 24: Basic Concept: Performance by Segment
May 2018 03 Basic Concept 2 Performance by Segment (Sales CAGR / Operating Income Ratio) MTMP16 Sales : FY2013 → FY2016 MTMP19 Sales : FY2016 → FY2019 Plan Operating Income Ratio : FY2016 Operating Income Ratio : FY2019 Plan ・In our “MTMP19,” we will secure an operating income ratio of 5% or more, w
Slide 25: Basic Concept: Sales of After Sales Services
May 2018 03 Basic Concept 3 Sales of After Sales Services 2000 100 million yen 1500 1000 500 0 FY2014 FY2015 FY2016 FY2017 FY2018 est. ＜Our reinforcement measures for the after sales services business＞ １．Create replacement demand by our customer value proposition activities (cryocoolers) ２．Integrate
Slide 26: Basic Concept: Organizational Integrations and Alliances
May 2018 03 Basic Concept 4 Organizational Integrations and Alliances ・Expand the scope of our semiconductor business with the application of our cryogenic technology ・Strengthen cooperative ties between HSC and LBC for our mobile crane business ・Strengthen domestic and international cooperative tie
Slide 27: Forward-looking statements disclaimer
May 2018 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 subject
Sumitomo Heavy Industries — FY2017 Earnings Presentation on 6ix