Sodick Co., Ltd. · TSE:6143
Sodick — FY2024 Earnings Presentation
48 slides from Sodick's earnings presentation, Feb 19, 2025
Slide 1: FY2024/12 Results Briefing
Tokyo Stock Exchange Prime Market 6143 FY2024/12 Results Briefing Sodick Co., Ltd. February 19, 2025
Slide 2: FY2024/12 Financial Results Summary
FY2024/12 Financial Results Summary
Slide 3: Financial Results Highlights (FY2024/12)
Financial Results Highlights (FY2024/12) Return to profitability for the first time in two years due to increased net sales in all businesses and progress in structural reforms Consolidated Results Net sales: 73.6 billion yen +9.7% YoY Operating profit: 2.2 billion yen –% Net sales increased due to
Slide 4: Financial Results Summary (FY2024/12)
Financial Results Summary (FY2024/12) Net sales increased in all businesses and gross profit margin significantly increased year on year due to progress in structural reforms. SG&A expenses also reduced, resulting in operating profit returning to profitability, and ROE has improved to the 5% lev
Slide 5: Analysis on Change in Operating Profit / Loss
Analysis on Change in Operating Profit / Loss In addition to an increase in net sales, gross profit significantly increased year on year due to the increase of operation rate of factory through progress in structural reforms. (Gross profit margin +4.0% YoY) SG&A expenses decreased by about 0.3 b
Slide 6: Trends in Net Sales and Operating Profit Margin (Quarterly)
Trends in Net Sales and Operating Profit Margin (Quarterly) Progress in reducing cost of Net sales Recovery from the Net sales decreased Machine tool sales fell sales and fixed expenses Operating COVID-19 crisis sharply in China and then, through progress of due to the spread of profit margin plant
Slide 7: Financial Results by Segment
Financial Results by Segment FY2020 FY2021 FY2022 FY2023 FY2024 (million yen) YoY Change Machine tool segment 38,024 51,485 56,492 46,706 51,355 10.0% Industrial machinery 10,931 10,367 10,656 8,630 9,560 10.8% segment Food machinery 3,585 6,884 6,813 6,902 7,695 11.5% segment Other segments 5,488 6
Slide 8: Financial Results by Segment: Machine Tool
Financial Results by Segment ■ Machine Tool Segment Trends in net sales (Quarterly) (million yen) Japan: In automobile and semiconductor industries, 16,000 14,267 14,146 investment remained stagnant. Electronic, aircraft and medical device components remained robust. 12,000 Greater China: Overall ma
Slide 9: Financial Results by Segment: Industrial Machinery
Financial Results by Segment ■ Industrial Machinery Segment Trends in net sales (Quarterly) (million yen) Japan: Although overall market conditions 4,000 remained weak, optical connectors for data 3,164 centers and smartphone components and 3,000 others remained robust. Demand for capital investment
Slide 10: Financial Results by Segment: Food Machinery
Financial Results by Segment ■ Food Machinery Segment Trends in net sales (Quarterly) (million yen) 5,000 Demand for noodle making machine-related 4,165 equipment and aseptically-packaged cooked rice 4,000 production systems in Japan and overseas remained robust. 3,000 Demand for replacement of rice
Slide 11: Financial Results by Segment: Other Segments
Financial Results by Segment ■ Other Segments Trends in net sales (Quarterly) (million yen) (Precision dies and mold operations involving the contract manufacturing of precision connectors and other products; 2,000 and elemental technology operations involving the sale of linear motors, ceramics pro
Slide 12: Balance Sheet
Balance Sheet Total assets increased by about 10.9 billion yen from the end of the previous year. Cash and deposits increased significantly due to the transfers of time deposits from non-current assets to cash and deposits, increased borrowing, and compensation for the relocation of Suzhou Factory
Slide 13: Cash Flow
Cash Flow FY2020 FY2021 FY2022 FY2023 FY2024 Cash flow from operating 5,270 7,642 3,543 -14 9,969 activities Cash flow from investing -1,410 -2,203 -10,957 -2,492 -1,632 activities Cash flow from financing 1,665 -1,932 -6,012 1,421 -1,041 activities Balance of cash and cash 38,255 44,229 33,158 33,3
Slide 14: Capital Investment / Depreciation / R&D Expenses
Capital Investment / Depreciation / R&D Expenses (million yen) Main contents of this term • Construction of a new base at Suzhou Capital investments Depreciation Factory 10,000 Capital 5,000 (Plans to newly establish CS Center and 9,000 4,500 investment 3,602 3,786 3,786 3,584 Tech Center) 8,000 3,3
Slide 15: FY2025/12 Full-year Financial Results Projections
FY2025/12 Full-year Financial Results Projections
Slide 16: Trends in JMTBA Order Volume and Sodick EDM Order Volume
Trends in JMTBA Order Volume and Sodick EDM (Electrical Discharge Machine) Order Volume 日本工作機械工業会 工作機械受注金額・ Trends in JMTBA Machine ソディックTool 放電加工機受注台数 Orders (amount) and Sodick EDM Orders (units) (0.1 billions of yen) (Unit) 200,000 800 2,000 Record-high monthly orders in Sodick (2021/3) A fall du
Slide 17: Trends in Sodick EDMs Order Volume by Region (Quarterly)
Trends in Sodick EDMs Order Volume by Region (Quarterly) Heavy impact of the prolonged downturn in automobiles. North and Demand for aircraft, electronic components, and medical Europe Aircraft components and medical devices remained South America devices remains robust. Demand for AI-related semico
Slide 18: FY2025/12 Full-year Financial Results Projections
FY2025/12 Full-year Financial Results Projections Net sales are projected to increase 5.1% year on year to 77.4 billion yen due to an increase in machine tool and industrial machinery segments. Operating profit is projected to increase due to improved profitability through increased production v
Slide 19: FY2025/12 Financial Results Projections (by Segment)
FY2025/12 Financial Results Projections (by Segment) Machine tool: Net sales increase due to increased sales of EDM machines in all regions. Expect to expand business of metal 3D printers and laser processing machines, maintenance services and sales of consumables. Plan to increase sales and profi
Slide 20: Plan of Capital Investment / Depreciation / R&D Expenses
Plan of Capital Investment / Depreciation /R&D Expenses FY2025/12 plan (million yen) 3.6 billion yen (up approx. 0.8 billion yen YoY) Capital investments Depreciation 10,000 9,000 5,000 • Construction of a new base at Suzhou Factory 8,000 3,786 3,584 (Plans to newly establish CS Center and Tech Cent
Slide 21: Progress of Medium-Term Management Plan and Future Business Strategy
Progress of Medium-Term Management Plan and Future Business Strategy
Slide 22: Return to Growth Phase
Return to Growth Phase Aim to reach the record high net sales after FY2026, 50 years anniversary of the foundation, with further promoting structural reforms Product expansion Medium-Term Plan period Next Stage 2033 Structural reform Net sales Operating profit (0.1 billion yen) 1,100 1,000 885 900
Slide 23: Long-term Vision and Goals
Long-term Vision and Goals Medium-term management plan to establish a growth foundation Promote business structure reforms Goals Strengthen stable revenue structure We contribute to a sustainable Create growth drivers society through manufacturing by further developing our own technologies and
Slide 24: Future Growth Story
Future Growth Story 01 Reform the profitability of the overall existing businesses First, in the structural reform period, while strengthening the competitiveness of EDMs, the main pillar, we will reform the profitability of the overall existing businesses through (1) reducing dependence on China, (
Slide 25: External Environment and Medium-Term Management Plan
External Environment and Medium-Term Management Plan External environment Medium-term Management Plan Operating Operating (0.1 billion yen) Net sales profit profit margin CAGR 6.3% CASE 1,000 200 885 900 815 18015.0% 774 800 736 160 DX 700 7.9% 14010.0% 6.5% 600 5.6% 12047.1% CAGR 500 3.0% 1005.0% 4
Slide 26: Quantitative figures for the Medium-Term Management Plan
Quantitative figures for the Medium-Term Management Plan FY2024 FY2025 FY2026 FY2027 (0.1 billion yen) (Actual) (Plan) (Plan) (Plan) Machine tool segment 513 530 556 599 Industrial machinery segment 95 108 117 124 Net sales Food machinery segment 76 79 86 100 Other segments 50 57 56 62 736 774 815 8
Slide 27: Machine Tool Segment: Future Initiative
Machine Tool Segment: Future Initiative Reinforcement of peripheral machine tools such as Machining Center, small-hole drilling EDM and laser processing machines, in addition to reinforcement of main EDMs Expanding profitability by strengthening solution business and maintenance service and sale
Slide 28: Machine tools: Progress in structural reform
Machine tools: Progress in structural reform Consolidating production at Suzhou Factory to Amoy Factory in China to optimize the production scale in the country Relocated Suzhou Factory and started construction of New Suzhou base, established as CS and Tech Center (completed in September 2025) S
Slide 29: Industrial Machinery Segment: Future Initiative
Industrial Machinery Segment: Future Initiative Strengthening the structure of organization to cope with growing demand for optical connectors Accelerating overseas expansion (the United States, Europe, and Southeast Asia) and considering expanding new businesses and portfolios Business expansio
Slide 30: Industrial Machinery: Progress of Structural Reform
Industrial Machinery: Progress of Structural Reform V-shaped recovery was achieved by shifting to sales of highly profitable models Integration of automation equipment and automated robots into thorough production automation solutions to promote labor saving Key points of structural Trends in se
Slide 31: Food Machinery Segment: Future Initiative
Food Machinery Segment: Future Initiative Japan: Capturing demand for replacement and addition of existing users, and new inquiries of labor-saving production and others. Overseas: Gaining demand for cooked rice production systems and noodle making machines mainly in China, Taiwan and South Kore
Slide 32: Food Machinery Segment: Progress of Structural Reform
Food Machinery Segment: Progress of Structural Reform Expanding sales in overseas markets, particularly in Asia, and business domains Steady progress toward becoming a global general food machinery manufacturer Key points of structural reform Initiatives Establishment of Overseas Sales Divisio
Slide 33: Financial Goal
Financial Goal Indicators Targets 2024 Results Capital efficiency ROE (5-year average) 8% or more 3.9% Financial soundness Equity ratio 50% or more 58.2% DOE*1 2% or more* 2.3% Return to Shareholders Total return ratio*2 40% or more 40.1% *Dividends per share: 26 yen or more (calculated from the ave
Slide 34: Cash Allocation (FY2025 – FY2027 Medium-Term Management Plan)
Cash Allocation (FY2025 – FY2027 Medium-Term Management Plan) Aggressively allocate capital to growth investments while steadily conducting shareholder returns based on earned operating cash flows ■ Strategic investment M&A M&A in growth fields for business expansion (e.g., laser processing machine
Slide 35: Return to Shareholders
Return to Shareholders Basic Policy Dividend on equity (DOE) 2% or more,*1 and total return ratio 40% or more Dividends per share 27 29 29 29 24 25 25 26 Interim 14 yen Year-end 15 yen 18/12 19/12 20/12 21/12 22/12 23/12 24/12 25/12 DOE 2.2 2.1 2.1 2.1 2.3 2.1 2.2 2.3 Interim 14 (%) (Projection) yen
Slide 36: Sustainability Initiatives
Sustainability Initiatives Field Activities in 2024/12 Key themes for 2025/12 Resetting CO2 reduction targets Expansion of solar power generation facilities Expansion of environmentally-friendly E Development of environmentally-friendly products products Promote efforts to reduce GHG emiss
Slide 37: Appendix
Appendix 1. Trends in Financial Results 2. Trends in Indexes 3. Trends in Financial Results by Segment 4. Numbers of Sodick EDMs Ordered and Sold 5. Overseas Sales Ratio by Segment 6. Maintenance Service and Sales of Consumables Ratio 7. Composition of Segments and Key Products 8. New Products Relea
Slide 38: Trends in Financial Results (Quarterly)
Trends in Financial Results (Quarterly) (million yen) 1Q 2Q 3Q 4Q 1H 2H Full year FY2022/12 YoY YoY YoY YoY YoY YoY YoY Net sales 19,604 136.9% 19,712 97.6% 20,441 105.0% 20,737 97.8% 39,317 113.9% 41,178 101.3% 80,495 107.1% Cost of sales 13,050 135.0% 13,126 99.7% 13,865 110.3% 13,629 96.9% 26,176
Slide 39: Trends in Indexes
Trends in Indexes Number of employees (Persons) 19/06 19/12 20/06 20/12 21/06 21/12 22/06 22/12 23/06 23/12 24/06 2４/12 Non- 801 841 869 886 914 924 987 1,087 1,170 1,183 1,192 1,180 consolidated Consolidated 3,625 3,579 3,576 3,633 3,670 3,683 3,772 3,746 3,778 3,562 3,487 3,417 *Not including empl
Slide 40: Trends in Financial Results by Segment
Trends in Financial Results by Segment 1Q 2Q 3Q 4Q 1H 2H Full year FY2022/12 YoY YoY YoY YoY YoY YoY YoY Net sales 14,096 135.8% 14,149 102.8% 14,318 109.3% 13,928 97.8% 28,245 117.0% 28,247 103.3% 56,492 109.7% Machine tool Operating profit 2,143 238.6% 1,795 79.5% 1,568 74.5% 1,539 80.4% 3,938 124
Slide 41: Numbers of Sodick EDMs Ordered and Sold
Numbers of Sodick EDMs Ordered and Sold Number of EDM ordered (Units) FY2022/12 FY2023/12 FY2024/12 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total North and South 81 58 56 83 278 70 63 70 74 277 65 68 61 76 270 America Europe 96 106 58 94 354 70 56 83 76 285 63 57 43 65 228 Greater China 578
Slide 42: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment (million yen) North and South Japan Europe Greater China Asia 25,000 America 20,000 Others Food machinery 15,000 Industrial machinery 10,000 Machine tools 5,000 0 2023年 FY2023 2024年 FY2024 2023年 FY2023 2024年 FY2024 2023年 FY2023 2024年 FY2024 2023年 FY2023 2024年 FY2024 2
Slide 43: Maintenance Service and Sales of Consumables Ratio
Maintenance Service and Sales of Consumables Ratio Quarterly trends in maintenance services and Breakdown of machine sales and maintenance/ services/ consumables sales consumables (million yen) Machine tools FY2023 FY2024 3,500 12,977 12,299 3,000 Maintenance 2,500 services and 12,299 26.3% 12,977 2
Slide 44: Composition of Segments and Key Products
Composition of Segments and Key Products Segment Machine tools Industrial machinery Food machinery Die-sinker EDM Wire-cut EDM Horizontal injection molding machine Noodle making machines (noodle production line) Small-hole drilling EDM Metal 3D printer Aseptically-packaged cooked rice production sys
Slide 45: New Products Released in 2024
New Products Released in 2024 Electrical discharge machines (EDMs) Metal 3D printer Laser Processing Machine AX350L i Groove + Edition OPM250L＋ LSP4040 Linear Motor Driven Linear Motor Driven Precision Linear Motor Driven Femtosecond Ultra-Precision Wire EDM Metal 3D Printer Laser Processing Machine
Slide 46: FY2024 Exhibition Information
FY2024 Exhibition Information Japan International Machine Tool Fair （JIMTOF 2024） One of the world's largest technology exhibitions, where cutting-edge technologies and products such as machine tools and peripheral equipment gather from around the world. Under the theme "Sodick Smart Solution,"
Slide 47: References: Web Exhibition and Official YouTube Channel
References: Web Exhibition and Official YouTube Channel Our website URL: https://www.sodick.co.jp/ Introducing our latest machines and technologies with a video at Sodick Web Exhibition A wide range of contents including our group's overseas YouTube channel is also open! sites is also availabl
Slide 48: Notes
Notes 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 Instrument