Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — Q2 FY2016 Earnings Presentation
28 slides from Sumitomo Heavy Industries's earnings presentation, Nov 1, 2016
Slide 1: Second Quarter Financial Summary and Projections for FY2016
Second Quarter Financial Summary and Projections for FY2016 November 1, 2016 President and CEO Shunsuke Betsukawa Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 1
Slide 2: INDEX
November 1, 2016 INDEX 01 Financial Summary for 2Q-FY2016 02 Performance Forecast for FY2016 03 Progress Status of “Medium-Term Management Plan 2016” Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 2
Slide 3: Financial Summary for 2Q-FY2016
November 1, 2016 01 Financial Summary for 2Q-FY2016 Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 3
Slide 4: Financial Summary: Key points
November 1, 2016 01 Financial Summary Key points Unit: JPY billion (1) Orders FY2015 FY2016 Change ・Fell across all segments apart from Environmental 1H 1H Facilities & Plant. Overall decrease as compared to previous term. Orders 356.3 336.6 (19.8) ・Energy-plant related areas showed strong growth
Slide 5: Operating Income by Segment
November 1, 2016 01 Operating Income by Segment Comparison with same term Unit: JPY billion previous fiscal year FY2015 FY2016 Change <Machinery Components> 1H 1H Despite a drop in sales for large-scale gear reducers, a review of the overseas supply chain resulted in cost Machinery improvements, a
Slide 6: Consolidated Balance Sheet
November 1, 2016 01 Consolidated Balance Sheet Unit: JPY billion March September March September Change Change 2016 2016 2016 2016 Current assets 493.0 448.9 (44.1) Liabilities 400.0 357.9 (42.1) Notes and accounts Cash and deposits * 70.8 60.6 (10.2) payable 142.3 127.2 (15.1) Notes and accounts re
Slide 7: Consolidated Cash Flow Statement
November 1, 2016 01 Consolidated Cash Flow Statement Significant increase in operating cash flow due to improvements to working capital Unit: JPY billion FY2015 FY2016 Category Change 1H 1H Operating activities (7.8) 17.8 25.5 Income before income taxes 16.6 18.2 1.6 Depreciation 9.6 10.0 0.4 Work
Slide 8: Performance Forecast for FY2016
November 1, 2016 02 Performance Forecast for FY2016 Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 8
Slide 9: Performance Forecast for FY2016
November 1, 2016 02 Performance Forecast for FY2016 ・Downward revision to FY2016 full-year operating income forecast due to JPY strengthening and downturn in the construction machinery market. ・The JPY14 annual dividend forecast remains unchanged from the initial number. Unit: JPY billion Record Rec
Slide 10: Machinery Components
November 1, 2016 02 Machinery Components 1H of FY2016 : Precision gear reducers for the domestic and European markets trended positively. Continuing market decline for large-scale gear reducers targeted to the resources and other sectors, while soft conditions persisted in the small-to-medium scale
Slide 11: Precision Machinery
November 1, 2016 02 Precision Machinery <Plastic machinery> 1H of FY2016 : Europe showed growth while demand for IT-related equipment in the Asian markets fell. 2H of FY2016 : Unclear whether IT-related market will recover. Automotive and container-related markets expected to show improved condition
Slide 12: Construction Machinery
November 1, 2016 02 Construction Machinery <Hydraulic excavators> 1H of FY2016 :Demand from the Chinese market looks to be bottoming out but the negative rebound in domestic demand because of the rush to purchase new units prior to the implementation of emission guidelines in the previous fiscal yea
Slide 13: Industrial Machinery
November 1, 2016 02 Industrial Machinery 1H of FY2016 :Industrial crane business showed growth due to the merger of Mitsubishi Heavy Industries’ industrial crane business. However, a decline in the medical device business in the industrial machinery sector resulted in flat order conditions for the s
Slide 14: Ships
November 1, 2016 02 Ships 1H of FY2016 : Continued weakness in the shipbuilding market. No new orders received in 1H (as compared to two in the previous term). Two vessels handed over in 1H, an increase of one from the previous term. Sustained profitability due to improved capacity utilization and i
Slide 15: Environmental Facilities and Plants
November 1, 2016 02 Environmental Facilities and Plants 1H of FY2016 : In the Energy Plant business, the demand for boilers from the biomass-fueled power generation sector was strong, while the ash treatment business and after-market service business also showed growth. Consequently, both orders and
Slide 16: Performance Forecast for FY2016 by Segment
November 1, 2016 02 Performance Forecast for FY2016 by Segment Unit: JPY billion Record Record Record Forecast Record Forecast 1H-FY15 2H-FY15 1H-FY16 2H-FY16 FY2015 FY2016 Orders 54.0 51.0 50.7 49.3 105.0 100.0 Machinery Net sales 52.3 55.3 48.9 51.1 107.6 100.0 components Operating income 3.6 5.4
Slide 17: Progress Status of Medium-Term Management Plan 2016
November 1, 2016 03 Progress Status of “Medium-Term Management Plan 2016” Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 17
Slide 18: Progress Status of MTMP16 (Overall)
November 1, 2016 03 Progress Status of “MTMP16” (Overall) ・As compared to the MTMP16 objectives, the FY2016 full year projections have been revised downwards, mainly due to currency rate fluctuations. ・Focus will be on implementing measures to achieve a “Return to Higher Levels of Profitability” and
Slide 19: Current Positioning of the Businesses with Regard to MTMP16
November 1, 2016 Current Positioning of the Businesses with Regard to MTMP16 03 (Revised in Certain Areas) Growth & High Improve Stabilize Profit Role Profitability Profitability Margins Aim to achieve growth Aim to achieve growth while maintaining high Ensure a stable level of Positioning while imp
Slide 20: Progress of Achieving Issues Outlined in MTMP16 (3 years)
November 1, 2016 03 Progress of Achieving Issues Outlined in “MTMP16” (3years) Implementation Plan Status Focused investment in business areas with potential for growth and high profitability Revitalized domestic factories and improved competitiveness Capital Investments: Gear reducers, injection mo
Slide 21: Status of MTMP16 Objectives (1) – Introduction of new products
November 1, 2016 Status of MTMP16 Objectives (1) 03 – Introduction of new products into the market <Large-Scale Gear <Ultra High Speed Injection Reducers> Molding Machine> ・Introduced new global model through ・Specific model for light-guide plates joint development with Hansen. that enables “world’s
Slide 22: Status of MTMP16 Objectives (2) – Newly developed devices for automotive sector
November 1, 2016 Status of MTMP16 Objectives (2) 03 – Newly developed devices for the automotive sector STAF – A forming process and module system targeting the automotive body manufacturing sector that achieves increased productivity and decreased cost while satisfying the need for high sophisticat
Slide 23: Status of MTMP16 Objectives (3) – Order received for biomass boiler
November 1, 2016 Status of MTMP16 Objectives (3) 03 – Order received for biomass boiler Order received for an 112MW Biomass High-Mixed Combustion Power Plant; Largest in Japan Air Water & Energia Power Yamaguchi Co., Ltd. Client * Special purpose entity set up jointly by Air Water Inc. and The Chugo
Slide 24: Status of MTMP16 Objectives (4) – Integration of Water Treatment Businesses
November 1, 2016 Status of MTMP16 Objectives (4) 03 – Integration of Water Treatment Businesses Unified operation ranging from construction to after-sale service established for the water treatment business Sumitomo Heavy Industries Sumiju Environmental Environment Integration Engineering Co., Ltd.
Slide 25: Basic Policy for the Next Medium-Term Management Plan
November 1, 2016 Basic Policy for the Next Medium-Term 03 Management Plan Corporate Mission Statement We will aim to become a machinery manufacturer that continues to provide excellent products and services to the world. With integrity being a key principle in the Group, we will contribute towards s
Slide 26: Management Policy
November 1, 2016 03 Management Policy FY2016 Second Half (with an eye on the next medium-term management plan) Continue prudent management ~ Manage with a quality-first mentality For FY2016: Aim to achieve the revised goal of JPY660 billion in sales and JPY43.0 billion in operating income; and F
Slide 27: November 1, 2016 All forward-looking statements regarding the company’s future performance are based on
November 1, 2016 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
Slide 28: Ref. Sales by Region (6-month cumulative basis)
November 1, 2016 Ref. Sales by Region (6-month cumulative basis) Unit：JPY billion Asia North Total Europe (excluding China Others Overseas Japan America sales China) Shipping FY2016 1H 56.1 27.5 35.0 23.7 10.4 14.2 150.9 317.8 Overall Company sales ratio 17.6% 8.7% 11.0% 7.5% 3.3% 4.5% 47.5% 100% 全社
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