Sodick Co., Ltd. · TSE:6143
Sodick — Q2 FY2020 Earnings Presentation
31 slides from Sodick's earnings presentation, Aug 14, 2020
Slide 1: 2Q FY20/12 Results Briefing
TSE 1st Section, 6143 2Q FY20/12 Results Briefing August 14, 2020 Sodick Co., Ltd. 1
Slide 2: Agenda
I. 2Q FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return Policy (Reference Materials) 2
Slide 3: Financial Results Highlights
Financial Results Highlights Due to the impact of COVID-19 pandemic, sales of electrical discharge machines (EDMs) sharply decreased all over the world including China, our major customer market. Profit fell over 80% from a year earlier, mainly on account of a decline in the profitability of the
Slide 4: Financial Results Highlights (Quarterly)
Financial Results Highlights (Quarterly) In the second quarter, although net sales fell due to restricted business activities owing to lockdowns and restrictions of going outside resulting from the spread of COVID-19 in Japan, the West, and Asia, sales recovered substantially in China compared wit
Slide 5: Ratio of Operating Income to Net Sales (Quarterly)
Ratio of Operating Income to Net Sales (Quarterly) • Including sales of Chinese subsidiaries during Jan-Mar 2017 (approx. 3,500 Net sales million yen) Record-high • Food processing machinery sales grew in 4Q. • Operating income margin fell owing to special factors associated with the fiscal net sale
Slide 6: Details of Changes in Operating Income
Details of Changes in Operating Income Sodick had operating income of 345 million yen owing to a substantial fall in gross profit due mainly to a decrease in net sales, though SG&A expenses fell by about 1,000 million yen as a whole owing mainly to a decrease in travel expenses resulting from rest
Slide 7: Financial Results by Segment
Financial Results by Segment (million yen) FY19/12 FY20/12 YoY change FY20/12 Full-year projection 2Q Actual 2Q Actual (Amount) (Rate) (Revised on Aug. 7) ● Machine tool segment 23,444 17,063 -6,381 -27.2% 35,000 ● Industrial machinery segment 4,213 5,316 1,102 26.2% 9,300 Net sales ● Food processin
Slide 8: Financial Results by Segment: Machine Tool
Financial Results by Segment (million yen) Machine Tool Segment Net sales (Quarterly) Net sales 20,000 • Net sales for the 2Q of the cumulative accounting 16,613 period fell substantially from a year earlier as there was 15,136 16,000 a tendency to postpone product shipment and capital 13,366 13,4
Slide 9: Financial Results by Segment: Industrial Machinery
Financial Results by Segment (million yen) Industrial Machinery Segment Net sales (Quarterly) Net sales 4,000 • A situation where economic activities were restrained 3,419 3,029 continued due to the impact of the global spread of 3,000 2,754 2,759 2,557 2,531 2,556 COVID-19. 2,424 2,320 • Net sale
Slide 10: Financial Results by Segment: Food Processing Machinery
Financial Results by Segment (million yen) Food Processing Machinery Segment Net sales (Quarterly) Net sales 3,000 2,813 • There was a continuous demand for sanitary equipment and equipment to respond to manpower 2,146 reduction and a growing demand related to nest- 2,000 dweller consumption resul
Slide 11: Financial Results by Segment: Other Segments
Financial Results by Segment (million yen) Other Segments Net sales (Quarterly) Net sales 2,000 1,781 1,714 • In the precision die and molding business, net sales 1,588 1,603 1,486 rose from a year earlier, in which business 1,500 1,369 1,346 1,453 1,353 1,240 environment deteriorated due to the i
Slide 12: Net Sales by Segment
Net Sales by Segment Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services and consumables Maintenance services and consumables Machine tool sales Industrial machinery sales Food processing machinery sales (milli
Slide 13: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment Net sales fell substantially in other regions than China. Ratio of overseas sales was 62.7%. (million yen) North and South Japan Europe Greater China Asia America Others Food processing machinery Industrial machinery Machine tools 2Q FY19/12 2Q FY20/12 2Q FY19/12 2Q
Slide 14: Balance Sheet
Balance Sheet Net interest-bearing debt totaled 2,886 million yen (down 1,877 million yen from the end of the previous fiscal year). Assets Liabilities and net assets (million yen) (million yen) 114,647 116,992 116,992 120,000 114,647 120,000 Other liabilities 17,264 18,392 100,000 33,873 38,866 1
Slide 15: Cash Flow
Cash Flow Cash flows from operating activities resulted in a surplus of 3,871 million yen thanks to a decrease in trade receivables, despite of a decrease in net income before taxes. Cash flows from investing activities secured a surplus of 3,124 million yen in free cash flows thanks to a decrease
Slide 16: 2Q FY20/12 Topics
2Q FY20/12 Topics 1 Recognized as one of the 2020 Global Niche Top 100 Companies The 2020 Global Niche Top 100 Companies is a project carried out by the Ministry of Economy, Trade and Industry (METI). Of companies which are opening up the international market, with regard to those which have a large
Slide 17: 2Q FY20/12 Topics
2Q FY20/12 Topics 2 Start of a benchmark test service for aluminum alloy molding using a metal 3D printer LPM325 We have carried on with research and development to increase our line of metal powder products which can be used by metal 3D printers, and have added an aluminum alloy AlSi10Mg to our lin
Slide 18: Status of Responses to the Spread of COVID-19
Status of Responses to the Spread of COVID-19 Status of operations at our major sites is as shown below (as of August 7) Site Operation status Partially restrict the use of public transportation and continue to promote working at home Japan Lay employees off for several days from August to October
Slide 19: Measures Taken by Sodick in the Era of With Covid-19
Measures Taken by Sodick in the Era of “with Covid-19” 1 Development of a face shield frame Face Tech We have developed a face shield frame useful for preventing COVID-19 infection, and have established a production system with a monthly output of 100,000 products since the beginning of July. We don
Slide 20: Sodick's Measures in the Era of With Covid-19
Sodick’s Measures in the Era of “with Covid-19” 2 Holding of web exhibitions Under circumstances where exhibitions are cancelled in various places and where we cannot visit our customers, we hold web exhibitions on our website, which are a new technique of business, to introduce new models and funct
Slide 21: Agenda
I. 2Q FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return Policy (Reference Materials) 21
Slide 22: Market Environment
Market Environment Japan: Despite the government's subsidy policy and potential demand, such as that for the replacement of aging facilities, the future is uncertain due to suspension of business activities and postponement of capital investment caused by the spread of COVID-19. North America an
Slide 23: FY20/12 Full-year Projections (Compared with Original)
FY20/12 Full-year Financial Results Projections (Compared with Original Projections) Made a downward revision of the plan at the beginning of the term in view of financial results for the cumulative second quarter and the impact of the spread of COVID-19 at the most recent time. (million yen) FY20
Slide 24: FY20/12 Full-year Projections (progress)
FY20/12 Full-year Financial Results Projections (progress) Made a downward revision of the plan at the beginning of the term in view of financial results for the cumulative second quarter and the impact of the spread of COVID-19 at the most recent time. (million yen) 2Q FY20/12 FY20/12 Full-year F
Slide 25: FY20/12 Full-year Projections (by Segment)
FY20/12 Full-year Financial Results Projections (by Segment) (million yen) FY20/12 FY19/12 Machine tool segment Full-year Although there is a potential demand Second-half projection 2Q Actual Actual for high-precision machines in the projection (announced automotive and other fields mainly in on A
Slide 26: Agenda
I. 2Q FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return Policy (Reference Materials) 26
Slide 27: Shareholder Return Policy and Dividend Projection
Shareholder Return Policy and Divided Projection Dividend policy: Aim at dividend on equity (DOE) of 2% or more. The annual dividend for the fiscal year ending December 2020 is expected to be 25 yen (the interim dividend of 12 yen and the year-end one of 13 yen). (yen) Dividends per share DOE 30
Slide 28: Reference Materials
I. 2Q FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return Policy (Reference Materials) 28
Slide 29: Reference Materials: Domestic and Overseas Sites
Reference Materials: Domestic and Overseas Sites NEW NEW Sodick America Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant Corporation(San Jose) (Chicago) Software Co., Ltd. (Multi-factory) Head Office and Research and Technology Center NEW Sodick Europe Ltd. (U.K.) Fukui Plant Ｑ Sodick Deutschl
Slide 30: Reference Materials: Participation in Major Exhibitions
Reference Materials: Participation in Major Exhibitions The Company will participate in domestic and overseas exhibitions, thereby engaging in proactive marketing. New schedule Period (In case of Location Exhibition Notes postponement) 2020 Exhibit injection molding machines 2021 Apr. 21-24 China S
Slide 31: Disclaimer
Disclaimer This presentation material has been prepared exclusively for the purpose of providing information; the material was not created to advertise, solicit, market, etc., specific products or shares of the Company. The information included in this material is not required by the Financial Instr