Slide 1: 2Q FY2023/12 Results Briefing
Tokyo Stock Exchange Prime Market 6143 2Q FY2023/12 Results Briefing Sodick Co., Ltd. August 18, 2023
Slide 2: 2Q FY23/12 Financial Results Summary
2Q FY23/12 Financial Results Summary
Slide 3: Financial Results Highlights
Financial Results Highlights Sales declined due to lower sales of electrical discharge machines (EDMs) and injection molding machines. Profitability also declined 2Q FY2023 Sales: 33.4 billion yen down 14.8% YoY OP: -0.3 billion yen –% Strong demand for CASE-related products, but adjusting demand fo
Slide 4: Financial Results Highlights
Financial Results Highlights Net sales decreased by 14% due to a sharp decline in sales of machine tools and industrial machines. Operating loss of approximately 0.4 billion yen owing to continued cost increases mainly due to lower plant profitability due to production adjustments, higher raw ma
Slide 5: Details of Changes in Operating Profit
Details of Changes in Operating Profit Gross profit significantly decreased due to lower sales and lower operating rates resulting from production adjustments at plants. Total SG&A expenses increased about 1 billion yen from the same period of the previous year, and personnel expenses increased
Slide 6: Ratio of Operating Profit to Net Sales (Quarterly)
Ratio of Operating Profit to Net Sales (Quarterly) OPM Sales of electrical Machine tool sales in discharge machines Net sales decreased Recovery from a fall China fell sharply (EDMs) was sluggish due to the spread of due to COVID-19 Operating rates and owing to U.S.–China COVID-19 profit margins low
Slide 7: Financial Results by Segment
Financial Results by Segment FY2019 FY2020 FY2021 FY2022 FY2023 YoY (million yen) Change 2Q 2Q 2Q 2Q 2Q Machine tool segment 23,444 17,063 24,145 28,245 24,201 -14.3% Industrial machinery 4,213 5,316 4,628 5,244 4,418 -15.8% segment Food machinery 2,344 1,515 2,521 2,344 2,448 4.4% segment Other seg
Slide 8: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment Machine Tool Segment Net sales (Quarterly changes) • Continued strong sales for CASE-related 16,000 products 11,973 Aerospace demand in the West is also 12,000 Net sales recovering. • Sales declined in Japan, Greater China 8,000 and Asia due to weak demand for semicond
Slide 9: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment Industrial Machinery Segment Net sales (Quarterly changes) 4,000 • The industrial machinery industry as a whole is facing a difficult situation due to customer 3,000 inventory adjustments and investment delays due Net sales to market softening for semiconductors and 2,
Slide 10: Financial Results by Segment: Food Machinery Segment
Financial Results by Segment Food Machinery Segment Net sales (Quarterly changes) 3,000 Demand for noodle-making machine- related equipment in Japan and overseas, Net sales 2,000 as well as aseptic-packaged cooked rice 1,449 production systems for overseas markets, has remained strong. 1,000 0 1Q
Slide 11: Financial Results by Segment: Other Segments
Financial Results by Segment Other Segments Net sales (Quarterly changes) • Net sales from the mold operations 2,000 decreased partly due to semiconductor shortages and supply chain disruptions. 1,500 Net sales 1,146 • Demand for ceramics for semiconductor 1,000 manufacturing equipment manufacture
Slide 12: Balance Sheet
Balance Sheet Although non-current assets increased due to expansion of food factories and construction of new sales offices, total assets increased slightly due to a decrease in accounts receivable - trade. Net assets increased due to an increase in foreign currency translation, despite a decre
Slide 13: Cash Flow
Cash Flow FY2023 FY2019 FY2020 FY2021 FY2022 Major breakdowns 2Q A decrease in trade receivables of 2.4 billion yen Cash flow from operating activities 8,336 5,270 7,642 3,543 539 An increase in inventories of 0.4 billion yen A decrease in trade payables of -2.3 billion yen Cash flow from investing
Slide 14: FY23/12 Full-year Financial Results Projections
FY23/12 Full-year Financial Results Projections
Slide 15: Changes in JMTBA Orders and EDMs Ordered from the Company
Changes in Amount of JMTBA Orders and in Number of EDMs Ordered from the Company JMTBA Machine Tool 日本工作機械工業会 Orders (value) 工作機械受注金額・ (million yen) Sodick EDM ソディック Orders (units) 放電加工機受注台数 (units) 200,000 800 Record-high monthly orders (2021/3) A fall due to the 2008 financial 150,000 crisis 600 I
Slide 16: Changes in Numbers of EDMs Ordered in Quarters by Region
Changes in Numbers of EDMs Ordered in Quarters by Region Sales of auto-related and aerospace-related products North and Sales of auto-related and medical-related products Europe remained strong. Some investors are postponing investing South America continued to decline, while aerospace-related and e
Slide 17: FY2023/12 Full-year Financial Results Projections
FY2023/12 Full-year Financial Results Projections Sales of machine tools and industrial machinery significantly decreased due to reduced demand for semiconductors and electronic components Although the production adjustment is expected to come to a close in the second half and the plant utilizat
Slide 18: Full-year Financial Results Projections (by Segment)
FY22/12 Full-year Financial Results Projections (by Segment) Machine tools: Sales of EDMs in Greater China fall sharply Profits worsened due to lower plant profitability and higher costs Industry machinery: Decreased net sales and profits due to weak sales for smartphones and electronic componen
Slide 19: Future Management Strategy
Sodick Future Management Strategy
Slide 20: Sodick's Vision
Sodick’s Vision Philosophy: Sodick Group, under the founding spirit of “Create,” “Implement,” and “Overcome Difficulties,” aims to provide the highest value to customers, and strives to contribute for a sustainable society as a company that “Create Your Future.” Our vision Contributing to a sustaina
Slide 21: Future Strategy
Future Strategy A new long-term management plan is being developed, taking into account market trends and specific issues within the Company. Seize growth opportunities and aim for long-term growth Growth opportunity Forecasts of weak performance due to external factors and internal restructuring Pr
Slide 22: Development of technologies and products that contribute to evolving manufacturing
Development of technologies and products that contribute to evolving manufacturing Electrical discharge machines (EDMs) Wire-cut EDM • High precision, high quality processing performance • Improvement of processing speed AL600G “i Groove + Edition” • Environmental considerations • Dramatically impro
Slide 23: Expansion of support bases supporting manufacturing
Expansion of support bases supporting manufacturing Sodick China South China Tech Center SODICK TECNOLOGIA MEXICO A subsidiary in Mexico City began operations in July 2023. A tech center in Dongguan, Guangdong Province, China, Aiming to expand sales in Latin America and the Caribbean, began operatio
Slide 24: Accelerated global expansion of food machinery segment
Accelerated global expansion of food machinery segment Established three pillars of noodles, cooked rice and precooked side dishes as a global integrated food machinery manufacturer Strengthen overseas sales Overseas sales division established. Full-scale sales activities focused on East Asia, Sou
Slide 25: Strengthening the production base of the food machinery segment
Strengthening the production base of the food machinery segment Established three pillars of noodles, cooked rice and precooked side dishes as a global integrated food machinery manufacturer Capacity expansion In order to further expand sales in overseas markets, it is urgent to increase productio
Slide 26: Financial Policy and Shareholder Returns
Financial Policy and Shareholder Returns Financial Policy Index Target 2022 Actual Capital efficiency ROE (5-year average) 8％ or more 7.0％ Financial Net cash Net cash plus 3,381 million yen soundness Equity ratio 50％ or more 58.5％ DOE *１ 2% or more 2.1% Shareholder returns Total return ratio *２ 40
Slide 27: Growth investments: Cash allocation
Cash allocation Aggressive allocation of capital to growth investments Investment in R&D Investment in • Machining centers, metal 3D printers R&D • Support for basic research and automation Growth investments Growth investments based on business portfolio • New business (laser business, etc.) Op
Slide 28: Our Efforts for Sustainability
Our Efforts for Sustainability Set KPIs for four our materiality issues KPIs Definition of environmentally friendly Targets products Percentage of environmentally friendly Reduce electricity consumption vs. models in machine tool lineup: current (2022) products by at least 50% by 2024 10% Percenta
Slide 29: Appendix
Appendix 1. Changes in Financial Results 2. Changes in Indexes 3. Changes in Financial Results by Segment 4. Numbers of EDMs Ordered and Sold 5. Ratio of Overseas Sales by Segment 6. Maintenance Service Ratio 7. Outline of Business, New products 8. Exhibition Information
Slide 30: Changes in Financial Results
Changes in Financial Results (million yen) 1Q 2Q 3Q 4Q 1H 2H Full Year FY2021/12 YoY YoY YoY YoY YoY YoY YoY Net sales 14,317 109.9% 20,187 147.7% 19,471 138.7% 21,199 122.6% 34,504 129.2% 40,669 129.8% 75,174 129.5% Cost of sales 9,665 107.9% 13,167 141.4% 12,571 130.7% 14,058 118.2% 22,832 125.0%
Slide 31: Changes in Indexes
Changes in Indexes Number of employees (Persons) 17/12 18/06 18/12 19/06 19/12 20/06 20/12 21/06 21/12 22/06 22/12 23/06 separate 701 743 755 801 841 869 886 914 924 987 1,087 1,170 consolidated 3,651 3,714 3,676 3,625 3,579 3,576 3,633 3,670 3,683 3,772 3,746 3,778 ＊Not including employee on loan t
Slide 32: Changes in Financial Results by Segment
Changes in Financial Results by Segment 1Q 2Q 3Q 4Q 1H 2H Full year FY2021/12 YoY YoY YoY YoY YoY YoY YoY Net sales 10,382 126.0% 13,762 156.0% 13,102 141.6% 14,237 121.6% 24,145 141.5% 27,339 130.4% 51,485 135.4% Machine Operating profit 898 454.3% 2,258 303.4% 2,104 287.0% 1,915 156.9% 3,156 335.4
Slide 33: Numbers of EDMs Ordered and Sold
Numbers of EDMs Ordered and Sold EDM Orders (Units) FY2021 FY2022 FY2023 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total North&South 58 70 54 68 250 81 58 56 83 278 70 63 133 America Europe 100 108 113 106 427 96 106 58 94 354 70 56 126 China 1,007 858 513 425 2,803 578 619 3
Slide 34: Ratio of Overseas Sales by Segment
Ratio of Overseas Sales by Segment 16,000 (million yen) North and South Japan Europe Greater China Asia America 14,000 12,000 Others 10,000 Food machinery 8,000 Industrial machinery 6,000 4,000 Machine tools 2,000 0 FY22 2022 FY23 2023 FY22 2022 FY23 2023 FY22 2022 FY23 2023 FY22 2022 FY23 2023 FY22
Slide 35: Maintenance Service Ratio
Maintenance Service Ratio Breakdown of sales of machinery, maintenance services and Quarterly trends in maintenance services consumables and consumables (million yen) Machine tools Q2 2022 Q2 2023 5,847 3,500 6,109 3,000 Maintenance services and 5,847 20.7% 6,109 25.2% 2,500 consumables 2,000 22,397
Slide 36: Outline of Business
Outline of Business Segment Machine tools Industrial machinery Food machinery Horizontal injection molding Noodle-making equipment Die-sinker EDM Wire-cut EDM machine (Noodle production line) Sterile-packed cooked rice production system Small Hole EDM Metal 3D Printer Vertical injection Key molding
Slide 37: Exhibition Information
Exhibition Information The 18th China International The 35th International Exhibition on ProPak Asia 2023 Machine Tool Show (CIMT 2023) Plastics and Rubber Industries (Chinaplas 2023) Our food machinery segment exhibited Exhibited at CIMT 2023, a machine We exhibited three models of injection for th
Slide 38: 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