Toyo Denki Seizo K.k. · TSE:6505
Toyo Denki Seizo K.k — FY2022 Earnings Presentation
30 slides from Toyo Denki Seizo K.k's earnings presentation, Jul 15, 2022
Slide 1: Financial Results Briefing for the Fiscal Year Ended May 2022
Financial Results Briefing for the Fiscal Year Ended May 2022 July 15, 2022 Toyo Denki Seizo K.K.
Slide 2: Program
Program ■ Briefing on Financial Results: 40 minutes 1. Overview of Financial Results for Fiscal Year Ended May 2022 2. Outlook for Financial Results for Fiscal Year Ending May 2023 3. Medium-Term Management Plan ■ Q&A: 20 minutes 1
Slide 3: 1. Overview of Financial Results for Fiscal Year Ended May 2022
1. Overview of Financial Results for Fiscal Year Ended May 2022 (From June 2021 to May 2022)
Slide 4: 1-1. Overview of Consolidated Financial Results
1-1. Overview of Consolidated Financial Results Sales and profits decreased from the previous fiscal year due to the resurgence of COVID-19 and difficulties in procuring members. Net income fell into the red due to impairment losses in Industrial Systems. Orders have bottomed out with a slight incre
Slide 5: Review of the Business Environment for the Fiscal Year Ended May 2022
<Reference> Review of the Business Environment for the Fiscal Year Ended May 2022 Business Environment <Domestic> Affected by factors such as a decrease in the number of Transportation passengers, railway operators are reviewing plans to build new rolling stock. As orders for new rolling stock are d
Slide 6: 1-2. Factors for Increase and Decrease in Operating Income (YoY change)
1-2. Factors for Increase and Decrease in Operating Income (YoY change) Although profit decreased due to the drop in net sales, the declining profit margin was suppressed by cutting expenses. Improvement in gross margin (non- consolidated) +00 million yen Decrease in Increase in subsidiary profits,
Slide 7: 1-3. Breakdown of Non-Operating Income/Expenses and Extraordinary Income/Loss
1-3. Breakdown of Non-Operating Income/Expenses and Extraordinary Income/Loss Non-operating Extraordinary income/expenses income/loss Income taxes +590 million yen -1.99 billion yen • Equity in profit of • Gain on sales of Operating income + unconsolidated investment securities equity in profit of s
Slide 8: 1-4. Segment Performance Transportation Systems
1-4. Segment Performance Transportation Systems Orders remained at the same level as the previous year. Although sales decreased, segment profit was close to the previous year’s level. ◼ Orders received and order backlog ◼ Net sales and segment income (100 million yen) Net Sales Segment income 300 O
Slide 9: 1-5. Transportation Systems: Factors for Increase and Decrease in Income
1-5. Segment Performance Transportation Systems: Factors for Increase and Decrease in Income Although sales and subsidiaries’ profits (from bus door closing equipment and others) decreased, profit continued to be at the previous year’s level due to improvement of gross profit margin and cutting expe
Slide 10: 1-6. Segment Performance Industrial Systems
1-6. Segment Performance Industrial Systems Despite lower sales and profits, orders have bottomed out with a slight increase. ◼ Orders received and order backlog ◼ Net sales and segment income (100 million yen) Net Sales Net Sales Segment income 150 150 30 Orders received 130.2 111.9 105.9 106.8 105
Slide 11: 1-7. Industrial Systems: Factors for Increase and Decrease in Income
1-7. Segment Performance Industrial Systems: Factors for Increase and Decrease in Income Despite the efforts to cut expenses, segment income decreased due to lower net sales and a decline in gross profit margin. Decrease in gross margin (non- consolidated) -290 million yen Plant profit/loss (non- De
Slide 12: 1-8. Segment Performance Information Equipment Systems
1-8. Segment Performance Information Equipment Systems Sales and profits continued to decline due to the impact of curbs on facility upgrades by railway operators. ◼ Orders received and order backlog ◼ Net sales and segment income (100 million yen) Net Sales Segment income 30 30 30 Net Sales Orders
Slide 13: 1-9. Consolidated Financial Position
1-9. Consolidated Financial Position 100 million yen 2 2015 End of June May 31, 0 May 31, Change Remarks 2021 1 2022 5 Total assets 519.6 469.1 -50.5 Current assets 253.0 241.8 -11.1 Equipment, etc. for Industrial Systems: Fixed assets 266.6 227.2 -39.4 -2,200 million yen Investment securities: -1,3
Slide 14: 1-10. Trends in Consolidated Cash Flows
1-10. Trends in Consolidated Cash Flows 100 million yen FYE May FYE May FYE May FYE May FYE May 2018 2019 2020 2021 2022 Cash flows from operating activities -15.7 37.2 21.4 17.7 25.0 Cash flows from investing activities -30.8 -10.1 0.4 -1.5 2.8 Purchases of property, plant and equipment -34.4 -22.7
Slide 15: 2. Outlook for Financial Results for Fiscal Year Ending May 2023
2. Outlook for Financial Results for Fiscal Year Ending May 2023
Slide 16: 2-1. Outlook for Financial Results for Fiscal Year Ending May 2023 (Consolidated)
2-1. Outlook for Financial Results for Fiscal Year Ending May 2023 (Consolidated) Orders received of 34.6 billion yen, net sales of 34.0 billion yen, and operating income of 450 million yen. 100 million yen FYE May 2022 FYE May 2023 YoY (Results) (Forecast) Change 2Q Full year 2Q Full year Full year
Slide 17: 2-2. Outlook for Financial Results (by Segment)
2-2. Outlook for Financial Results (by Segment) 100 million yen Transportation Industrial ICT Solution Net Sales 210.0 118.0 12.0 FYE May 2023 Forecast (Full Segment income 22.0 9.0 2.0 Year) Orders received 208.0 124.0 14.0 Net Sales ＋15.5 ＋19.0 ＋4.1 YoY Change Segment income ＋0.1 ＋4.3 ＋0.6 Orders
Slide 18: Assumptions for Outlook for Financial Results
<Reference> Assumptions for Outlook for Financial Results The business environment assumed in the outlook for the financial results for the fiscal year ending May 2023 Business Environment - In Japan, the number of railway passengers is expected to recover gradually against the backdrop of a certain
Slide 19: 3. Medium-Term Management Plan
3. Medium-Term Management Plan
Slide 20: 3-1. Review of the Four Years of the Previous Medium-Term Management Plan
3-1. Review of the Four Years of the Previous Medium-Term Management Plan Numerical Targets and Results of the Medium-Term Management Plan "Revitalize 2020/2022" (from fiscal year ended May 2019 to fiscal year ended May 2022) 100 million yen 2018/5 2020/5 2022/5 Result Plan Result Initial plan Revie
Slide 21: 3-2. Reasons for non-achievement of the previous Medium-Term Management Plan
3-2. Reasons for non-achievement of the previous Medium-Term Management Plan Major factors behind the failure to achieve the Medium-Term Management Plan A significant increase in demand was expected against the backdrop of the investment effect in Shiga Ryuo. Although the first half progressed Indus
Slide 22: 3-3. Results and Issues of the Previous Medium-Term Management Plan
3-3. Results and Issues of the Previous Medium-Term Management Plan Results and Issues of Basic Policies and Major Measures ◆ Development of a robust business structure has progressed with the completion of integration in Industrial Systems at Shiga Ryuo Plant. ◆ Progress has been made in strengthen
Slide 23: 3-4. New Medium-Term Management Plan
3-4. New Medium-Term Management Plan Under the new Medium-Term Management Plan, we will promote efforts to achieve "regeneration and transformation of Toyo Denki" in order to "restore and improve the corporate value." Numerical targets will be disclosed in the next fiscal year. ◆ Under the previous
Slide 24: 3-4. New Medium-Term Management Plan: Priority Initiatives
3-4. New Medium-Term Management Plan Priority Initiatives for Structural Reform over the Next Year ◆ In addition to focusing on the following initiatives, we will work to establish an organizational structure that supports these initiatives aimed at under the new Medium-Term Management Plan, strengt
Slide 25: 3-5. Topics
3-5. Topics We exhibited our products at the Railway Technology Exhibition in Osaka and the Automotive Engineering Exposition held in May. ◆ Railway Technology Exhibition in Osaka We exhibited our products also in Osaka following the Railway Technology Exhibition in Makuhari at the end of last year.
Slide 26: 3-5. Topics
3-5. Topics We started demonstration tests of a power storage system for superconducting flywheels for railroads. We have completed the delivery of a power storage system for superconducting flywheels for railways commissioned by East Japan Railway Company, and the railway operator has started demon
Slide 27: Our company profile and business overview
<Reference> Our company profile and business overview (1) Establishment : June 20, 1918 (104 years since establishment) (2) Capital stock ：4.9 billion yen (consolidated: fiscal year ended May 2022) (3) Net Sales ：30.1 billion yen (ditto) (4) Number of employees ：1,193 (ditto) (5) Business lines : Tr
Slide 28: Our company profile and business overview
<Reference> Our company profile and business overview We are contributing to the development of the railway and industrial fields as a heavy electric machinery manufacturer with three businesses: Transportation Systems, Industrial Systems, and ICT Solution Systems. Transportation Systems: products a
Slide 29: Our company profile and business overview: Sustainability Policy
<Reference> Our company profile and business overview ◆Sustainability Policy The Group’s Corporate Philosophy calls for contributions to society, while its Environmental Philosophy calls for efforts to protect the global environment as an important issue. And we have established our Sustainability P
Slide 30: Disclaimer
Disclaimer • Statements concerning financial results forecasts are based on data available as of the date of publication of this material and assumptions concerning the elements of uncertainty that will affect future business performance as of the date of publication of this material. Actual financi