Anest Iwata Corp. · TSE:6381
Anest Iwata — Q2 FY2021 Earnings Presentation
35 slides from Anest Iwata's earnings presentation, Nov 26, 2021
Slide 1: Presentation Material of FY2021 Second Quarter Financial Results
Presentation Material of FY2021 Second Quarter Financial Results ANEST IWATA Corporation November 26, 2021 First Section of the Tokyo Stock Exchange - Machinery Securities Code 6381
Slide 2: History of ANEST IWATA's business
History of ANEST IWATA's business We started by manufacturing coating spray guns and air compressors for inspecting those guns. Founded in 1926 (Former company name: Iwata Seisakusho) Product differentiation concept ・Environment-friendly ・Ability to present Started manufacturing of spray guns Coatin
Slide 3: Contents
Contents 1. FY2021 second quarter financial results 2. Prospects for the FY2021 full-year period 3. Two business strategies and implementation status 4. Activities related to ESG and SDGs 3
Slide 4: 1. FY2021 second quarter financial results
1. FY2021 second quarter financial results 4
Slide 5: FY2021 2Q financial highlights
FY2021 2Q financial highlights With an eye toward the post-corona age, we promoted sales reform, and due to a global economic recovery trend, the effect became apparent. We achieved increases in both sales and income. The profit ratio also improved. (million yen) Sales 20,360 Air energy 12,114 (59.5
Slide 6: Highlights of FY2021 2Q financial results
Highlights of FY2021 2Q financial results Income exceeded the level before COVID-19. Sales, operating income, and ordinary income marked record highs on a semi-annual base. FY2021 result forecasts were revised upward. ・ The economic recovery in Europe, the United States, and China served as the driv
Slide 7: Details of profit and loss statements
Details of profit and loss statements Sales were up, while the cost of sales was limited. The selling, general & administrative expenses ratio was down. Sales grew by 23% (up 699 million yen, year-on-year, which applies hereafter) due to the sales reform, economic recovery, and depreciation of the y
Slide 8: Differences from the result forecasts for the first half of the year
Differences from the result forecasts for the first half of the year Differences between the assumptions at the end of 1Q and at the end of 2Q ＜Causes of sales differences> ● The pace of recovery accelerated with air compressor and coating equipment products as pillars. ● Demand for general-purpose
Slide 9: Sales trend by area and by product
Sales trend by area and by product Sales of general-purpose products increased due to the global economic recovery and efficient operating activities enabled through the use of the Web and other technologies. Japan got close to the level before COVID-19. ・ Sales of general-purpose air compressors gr
Slide 10: Analysis of causes of sales increase/decrease
Analysis of causes of sales increase/decrease Aggressive sales efforts resulted in business performance exceeding the forecasts for the first half of the year. Note) Converted to actual sales in each individual area ■ Sales of air compressors grew in Asia (up 1,415 million yen from last year). ・ Exp
Slide 11: Analysis of causes of operating income increase/decrease
Analysis of causes of operating income increase/decrease The increase in sales compensated for the cost increase, contributing to the increase in income. ・Substantial increase in gross profit resulting from the increase in sales ・Increase in payment of salaries and so on, which were transferred to t
Slide 12: 2. Prospects for the FY2021 full-year period
2. Prospects for the FY2021 full-year period 12
Slide 13: Prospects for FY2021
Prospects for FY2021 Both results and dividends will be revised upward: An optimal mix of remote and face-to-face sales activities is expected to lead to recovery of sales. Amount: million yen FY2020 (Actual) FY2021 (Prospect) Actual Composition Beginning-of- Revised forecast Composition As compared
Slide 14: Factors for revising the prospects for the FY2021 full-year period
Factors for revising the prospects for the FY2021 full-year period Revised sales forecast (Unit: Million yen) Key points ■Common ＋ Global economic recovery ＋ Price rises beginning in September (next January for overseas markets) ■Air energy business ＋ Reinforced efforts to sell compact oil-free air
Slide 15: Progress of the strategy
Progress of the strategy ●The COVID-19 pandemic that began in FY2019 made clear the effects of our existing strategy. ＊Capturing the niche market of air compressors made clear the effect of customized products in boosting sales. ・ Sales of medical oil-free air compressors grew in the U.S., India, an
Slide 16: Progress of the strategy (sales reform)
Progress of the strategy (sales reform) Problems identified as of FY2018 (reasons for the reform) ・Logistics: The problem is the impact of lack of appropriate procurement, SCM *1, and transportation systems not only in Japan but around the world, resulting in issues such as degraded logistic quality
Slide 17: Progress of the strategy (sales reform): new sales style
Progress of the strategy (sales reform) New sales style we aim to achieve ＊Sales: Divide products into general-purpose products and proposed ones (including customized products). Inside sales (This sales style involves conducting follow-up on many prospective customers according to the possibility o
Slide 18: Continued promotion of the work reform
Progress of the strategy (sales reform) Continue to promote the sales reform even during the COVID-19 pandemic Continued promotion of the work reform 1. Operating activities using information and communication technology (ICT) Using an online business meeting system, FaceTime, etc., we actively prom
Slide 19: Capital investment plan and R&D cost
Capital investment plan and R&D cost <No changes to the prospects at the beginning of the term> (Actual) 2Q: Amount of capital investment 22.4%, R&D cost 43.7% IT-related investments: In comparison with the plan to spend approx. 700 million yen a year, approx. 110 million yen were spent on the estab
Slide 20: Measures to increase shareholder returns
Measures to increase shareholder returns Dividend We secure internal reserves to invest in growth and ensure stable dividends. policy The payout ratio is 35% or more. Dividend FY2021 (forecast): 26 yen (annual) (13 yen (interim) ＋ 13 yen (year-end)) **The dividend forecasts were revised upward. (Ann
Slide 21: 3. Two business strategies and implementation status
3. Two business strategies and implementation status 21
Slide 22: Our strengths: Customized product lineup for a wide variety of applications
Our strengths: Customized product lineup for a wide variety of applications Customized products are less affected by the economic situation and help keep business performance on track. Air energy business Coating business Air compressors Spray guns (Coating equipment) Vehicle- Science & Dedicated Au
Slide 23: Sales composition ratio of main products by industry
Sales composition ratio of main products by industry Air energy business Coating business Air compressors Spray guns (coating equipment) 15% 10% (10%) 20% (7%) 40% 20% 25% 50% (30%) (53%) 20% Source: Estimates based on internally collected data Source: Estimates based on internally collected data Ma
Slide 24: Basic strategy
Basic strategy: Shift to highly profitable products while maintaining a high share of the Japanese market. In overseas markets, by contrast, there is room for increasing our share and a huge opportunity for income growth. So, broaden the product range and business areas by introducing new products,
Slide 25: Air energy business strategy
Air energy business strategy Domestic market: Secure income with oil-free and other value-added products in a mature market. Overseas markets: Price competition is less severe than in Japan. Expand profits by increasing shares in overseas markets. Huge and high-margin Mature and increasingly eco- ov
Slide 26: Air energy business strategy - Global market trend
Air energy business strategy - Global market trend Our small-size models have a relatively large share of the Japanese market. By contrast, we have a market share as low as 1% abroad, meaning there is much room for expansion. Particularly, the medical and vehicle- mounted product markets have great
Slide 27: Air energy business - Efforts and other topics
Air energy business - Efforts and other topics Our strengths ◆General-purpose product and customized product General-purpose product: Mentioned in a catalog and a suggested retail price is set ・ Concentrated investment in the niche market Customized product: Product manufactured and price set accord
Slide 28: Coating business strategy
Coating business strategy Domestic market: Although this is a mature market, we will secure profit with value-added products by leveraging our large market share (our hand spray guns have a share of approx. 75％). Overseas markets: In addition to the competitive high-end range, we will seek to achiev
Slide 29: Coating business strategy - Global market trend
Coating business strategy - Global market trend Focus on launching new products in overseas markets that account for around 70% of our sales. Seek to achieve growth as we develop and enhance environment-friendly products. • Spray guns account for approx. 60% of the sales of our coating business. Bot
Slide 30: Coating business - Efforts and other topics
Coating business - Efforts and other topics ◆General-purpose product and customized product Our strengths General-purpose product: Mentioned in a catalog and a suggested retail price is set ・ Concentrated investment in the niche market Most coating spray guns and paint supply devices fall into this
Slide 31: 4. Activities related to ESG and SDGs
4. Activities related to ESG and SDGs 31
Slide 32: Integrated Report 2021 was issued (September 2021)
Integrated Report issued again this year (for 3 straight years) “Integrated Report 2021” was issued (September 2021). English version will be released in December 2021. As a communication tool for helping stakeholders enhance their understanding of ANEST IWATA, an integrated report is issued every y
Slide 33: Our ESG-conscious management leads the industry
Our ESG-conscious management leads the industry We implemented an ESG-conscious management style early on. Development of eco-friendly products Air energy business: ・Provision of oil-free air compressors that do not use lubricants as well as energy-saving products Coating business: ・Development of s
Slide 34: Major activities related to SDGs
Major activities related to SDGs Products Business sites 1. Development from the perspective 1. Promotion of health and productivity of SDGs management Make it mandatory to indicate which Build a health management promotion goals will be attained by a new product system and take relevant measures to
Slide 35: Notes on the descriptions about future prospects and other matters
Notes on the descriptions about future prospects and other matters The future prospects for our company mentioned in this document are based on the currently available information. Please be advised that there are various external factors that can impact our business performance, such as the global