Hosokawa Micron Corporation · TSE:6277
Hosokawa Micron — H1 FY2024 Earnings Presentation
40 slides from Hosokawa Micron's earnings presentation, Jun 5, 2024
Slide 1: Financial Results The 1st half of FY2024
Financial Results The 1st half of FY2024 5th Jun. 2024 ticker symbol：6277 © HOSOKAWA MICRON CORP. All rights Reserved.
Slide 2: Financial summary / Outlook / Topics / Appendix
１ Financial summary 2 Outlook for the Future 3 Topics 4 Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 1/38
Slide 3: Financial summary
１ Financial summary 2 Outlook for the Future 3 Topics 4 Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 2/38
Slide 4: Financial summary
Financial summary Steadily booked sales from its abundant backlog of orders, and the effect of the yen's depreciation also contributed to record-high net sales. Improved profitability due to the gradual recording of sales from projects with increased prices and in addition to the effect of increased
Slide 5: Business Segment
Business Segment 22% FY2024 1H Net sales by business segment(%) 78% Blown film business Powder processing business Equipment sales Equipment sales Toll Aftersales Material and engineering and engineering processing © HOSOKAWA MICRON CORP. All rights Reserved. 4/38
Slide 6: Business Results
Business Results FY2023 1H FY2024 1H YoY changes YoY Changes(%) Results(a) Results(b) (c=b-a) (c /a) Booking 44,054 41,228 - 2,826 - 6.4％ Net sales 37,182 41,477 ＋4,295 ＋11.5% Cost of sales 24,725 27,322 ＋2,597 +10.5% Gross profit 12,457 14,154 ＋1,697 +13.6% Gross profit margin 33.5% 34.1% ＋0.6ppt S
Slide 7: Non-operating income and extraordinary losses
Non-operating income and extraordinary losses Non-operating income Extraordinary losses Income before Operating profit Ordinary profit Ordinary profit income taxes 3,779 4,259 4,259 3,323 million JPY million JPY million JPY million JPY ＋480million JPY - 936million JPY Main Factors Main Factors ・ Inc
Slide 8: Bookings by Application
Bookings by Application Pharmaceuticals 9.2% Polymers and Blown Films performed well. Blown films Foods 23.9% 6.7% Decrease from the same period of the previous fiscal year in mainstay chemical and electronic materials-related applications, Chemicals mainly for rechargeable batteries, which had been
Slide 9: Trend of Bookings, Net sales & Backlog
Trend of Bookings, Net sales & Backlog Long delivery times have stabilized, and sales recordings are steadily progressing based on the abundant backlog. （100 million JPY） 700 Bookings Net sales Backlog 600 537 499 500 527 400 371 300 267 263 271 229 200 174 100 0 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4
Slide 10: Trend of dwell time in Backlog
Trend of dwell time in Backlog Longer delivery times for procured parts and materials continue, but the number of days of backlogged orders is improving. 273day 223day 242day 237day 186day 151day FY2019 2020 2021 2022 2023 2024 1H Backlog *1 Backlog dwell time (day) ＝ Net Sales per day（ Net Sales ÷3
Slide 11: Net Sales Increase/Decrease Factors
Net Sales Increase/Decrease Factors Received favorable foreign currency translation effects, resulting in a solid increase in net sales after translation into Japanese currency. Powder processing business maintained strong performance. Sales of blown film business increased due to progress in sales
Slide 12: Net sales by Group company location
Net sales by Group company location Americas In Europe and the U.S., in addition to the effect of yen 15.4% depreciation (euro and dollar appreciation), the delayed Net sales Japan,Asia by Group effect of price hikes also appeared and contributed to the etc. company Europe consolidated profit increa
Slide 13: Net sales by customers' Location (Destination)
Net sales by customers’ Location (Destination) Asia, etc. In Europe, Net sales increased mainly due to the weaker yen. 19.3% Europe Net sales by In the Americas, Net sales increased mainly due to increased Customers’ 43.3% sales of blown film business. Americas Location 18.7% Japan 18.7% Asia, etc.
Slide 14: Operating profit Increase/Decrease Factors
Operating profit Increase/Decrease Factors Gross profit margin improved due to progress in bookings of projects in Europe and Americas in which price increases (i.e., price increases due to material price hikes) that had been delayed and in addition to the effect of increased sales. The main reason
Slide 15: Balance Sheet
Balance Sheet Capital adequacy ratio ：62.3％(Change from end of FY2023 +1.7ppt) (Million JPY) *( ) shows the change from end of FY2023 Current assets Liabilities 66,413 37,478 (+1,787) (- 647) Liability with Cash and cash Equivalents Interest : 1,709 28,128 Accounts payable, etc. (+2,200) 11,229 Coll
Slide 16: Cash Flow
Cash Flow Operating activities ： Despite a decrease in accounts payable, cash increased due to progress in collection of accounts receivable Investing activities ： Decrease due to purchase of PPE Financing activities ： Payment of dividends CF from operating CF from activities investing CF from Effec
Slide 17: Outlook for the Future
１ Financial summary 2 Outlook for the Future 3 Topics 4 Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 16/38
Slide 18: FY2024 Full Year Forecast
FY2024 Full Year Forecast The full year forecast was revised upward in light of the following two factors. (Updated on May 10th) • Details of first half results and order backlog carried forward as of the end of the interim period • Significant depreciation of JPY against EUR and USD Full year forec
Slide 19: Performance by fiscal year (Consolidation)
Performance by fiscal year (Consolidation) 14th Mid-term 15th Mid-term 16th Mid-term 17th Mid-term Plan for 3 years Plan for 3 years Plan for 3 years Plan for 3 years Further development of Hosokawa Micron Group Hosokawa Micron Group Hosokawa Micron Group Mountain Range of intends to maximize enhanc
Slide 20: Dividend Forecast
Dividend Forecast Plan to pay an annual dividend of 100 yen per share, consisting of interim and year-end dividends of 50 yen each. 110 35% 100 100 Dividends per share (JPY) Payout ratio(%) 30.4% 90 32.0% 30% 80 26.8% 50 70 year-end 23.3% （Forecast） 25% 60 21.4% 21.3% 22.9% 20.4% 50 87.5 20% 40 75 6
Slide 21: Topics
１ Financial summary 2 Outlook for the Future 3 Topics 4 Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 20/38
Slide 22: Initiatives to achieve cost of capital and stock price conscious management
Initiatives to achieve cost of capital and stock price conscious management The following management targets were set. • ROE of 10% or more • Operating profit to sales ratio of 10% or more • Total-Dividend-Payout-Ratio of 50% or more • PBR of 1x or more © HOSOKAWA MICRON CORP. All rights Reserved. 2
Slide 23: Publication of Integrated Report
Publication of Integrated Report The first issue of the Integrated Report 2023 was published in March of this year and is available on our website. As the first issue, we produced it with the aim of spreading awareness of what kind of company Hosokawa Micron is. We introduce each of our powder techn
Slide 24: Investment-related (Facility renewal)
Investment-related (Facility renewal) Updating existing facilities to provide and maintain a high level of service to customers. Creating a comfortable work environment for employees to improve employee engagement Hosokawa Micron Headquarters (Japan) Hosokawa Alpine (Germany) *A photo were taken bef
Slide 25: Three-Year Medium-Term Management Plan Evaluation
Three-Year Medium-Term Management Plan Evaluation (As of the end of the interim period) Excellent • Strengthening of toll processing (U.S. Excellent and Japan) • Introduction and operation of SFA, • Expansion of sales channels in the South market information visualization American market (Establishe
Slide 26: Appendix
１ Financial summary 2 Outlook for the Future 3 Topics 4 Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 25/38
Slide 27: Company Profile
Company Profile Representative Kohei HOSOKAWA Foundation Apr. 1916 Capital 144.96 Million JPY Fiscal Establishment Aug.1949 year end Sep. Stock Prime Market of Tokyo stock exchange. market （from Apr. 4th, 2022） Head Office 1-9, Shodaitajika, Hirakata City, Osaka Location Consolidated 1,957 Employees
Slide 28: About Us
About Us Management Philosophy "Powder Technology contributes to the Society" Corporate Vision The Hosokawa Micron Group will always be the leading global company covering the mountain range of Powder Technologies. The Group will achieve peaks of excellence in the development and commercialization o
Slide 29: About Us: Our Business
About Us Our Business We provide providing machinery, equipment, and system engineering Business Areas Powder Processing Business and Blown Film Business © HOSOKAWA MICRON CORP. All rights Reserved. 28/38
Slide 30: Powder Technologies
Powder Technologies Milling Drying Various operations Separation Granulation Blending Measurement Recovery of powders, Filtration © HOSOKAWA MICRON CORP. All rights Reserved. 29/38
Slide 31: Contribution to Circular Economy: Powder Processing Technology
Contribution to Circular Economy：Powder Processing Technology Lithium-Ion Battery Neodymium Magnet for Motor, Material of Silicone for Electric Vehicle Generator / Ceramic Bearing etc. for Solar Cell Pulverizing, high functionalization and lessening of Manufacturing cost of raw material particle. Dr
Slide 32: Contribution to Society through Powder Technology (Case 1)
Contribution to Society through Powder Technology (Case 1) PET recycled products that could only be used as fiber can now be recycled into bottles Solid State Polymerization (Drying Technology Application) PET Bottle 【 Improved performance of electric vehicles 】 Electrode materials for rechargeable
Slide 33: Contribution to Society through Powder Technology (Case 2)
Contribution to Society through Powder Technology (Case 2) Application to manufacture of silicon solar panels and wind turbines Milling Technology Solar & Wind power Generation 【 Response to Protein Crisis 】 Meat substitutes, insect food, and cultured meat from plant materials Milling Technology Dry
Slide 34: Powder Processing Equipment
Powder Processing Equipment Film manufacturing equipment The melted polymer is using the inflation method inflated with air and molded into a bag shape. The translucent part is the film Offering the system (Including Winder, Orientation, etc.) © HOSOKAWA MICRON CORP. All rights Reserved. 33/38
Slide 35: Expanding our Business Worldwide
Expanding our Business Worldwide One of the industry’s largest manufacturing, aftersales service, and R&D systems Manufacturing and repairing large machines by our own factories in Japan, USA, and Europe. Global support for maintenance and remodeling (facility improvement) Research and development d
Slide 36: Where powders are used?
Where powders are used ? Synthetic resin Lithium ion battery Recycle Automobiles Cemented Toner, Magnets, carbide material Electronics materials Clean room Minerals Hosokawa Micron Group Air pollution control Foods Agriculture Pharmaceuticals Chemicals © HOSOKAWA MICRON CORP. All rights Reserved. 35
Slide 37: Corporate History
Corporate History Foundation of the Osaka Turbine Water Mill Asian subsidiaries, Malaysia (1995), Korea 1916 Company (1996), France (1999), China (2005), India Company name changed to the Hosokawa 1995 (2007), Russia (2012), Thailand (2019), 1949 Iron Works Poland (2020), Switzerland, Mexico, Chile(
Slide 38: Net sales by Geographic area
Net sales by Geographic area *Size of squares shows sales amount. Net sales by Group Companies’ Location Net sales by Customers’ Location (Destination) © HOSOKAWA MICRON CORP. All rights Reserved. 37/38
Slide 39: Net sales by Major group companies
Net sales by Major group companies ※Size of squares shows sales amount. © HOSOKAWA MICRON CORP. All rights Reserved. 38/38
Slide 40: Disclaimers
【Disclaimers】 The forward-looking statements contained in this document are based on information and processes available at the time this document was prepared, and actual results may differ from the forecast figures due to various factors in the future. No part of this document must be reprinted or