THK Co., Ltd. · TSE:6481
THK — FY2021 Earnings Presentation
33 slides from THK's earnings presentation, Feb 10, 2022
Slide 1: Financial Results Briefing for Fiscal 2021
FINANCIAL RESULTS BRIEFING FOR FISCAL 2021 February 10th 2022 THK CO.,LTD. President & CEO AKIHIRO TERAMACHI This presentation material contains forward looking statements that reflect the Company’s business plans, performance projections, and management strategy. Such statements are based on inform
Slide 2: Contents
Contents Ⅰ. Financial Results for Fiscal 2021 Ⅱ. Approach toward Achieving Management Target Ⅲ. Financial Forecast for Fiscal 2022 Copyright THK CO., LTD. 2022. All rights reserved.
Slide 3: Financial Results for Fiscal 2021
Ⅰ. Financial Results for Fiscal 2021 Copyright THK CO., LTD. 2022. All rights reserved.
Slide 4: Financial Highlights
Financial Highlights ※地域別売上高は Consolidated revenue up 45.3% YoY to 318.1 billion yen 海外売上高ベース Close behind China, where economic activity recommenced faster than in other countries, in the face of the ongoing effects of the COVID-19 pandemic, advanced nations and other regions entered a period of re
Slide 5: Trend in Net Sales
Trend in Net Sales 353,479 Asia and other 28,772 ●Taiwan Up 88.6％ 【Irregular Period】 318,188 ●Singapore Up 139.5％ 286,603 28,624 ●India Up 166.9％ millions of yen 49,228 Asia and other 274,599 24,896 China 22,021 ●Machine tools Up 137.1％ 68,662 ●General machinery 56,980 Up 69.6％ China 41,410 30,996 ●
Slide 6: Operating Income Change Factors (Industrial Machinery)
(Ref.) Operating Income – Change Factors – (Industrial Machinery) 2.2 1.0 40.4 35.1 Billions of yen 7.7 (11.2) Billions of yen (3.4) (1.6) 77 億円 Operating Income Increase in Change in This is because Effect Foreign Reclassification of Operating Income last year costs due to other income and 2021 202
Slide 7: Operating Income Change Factors (Automotive & Transportation)
(Ref.) Operating Income – Change Factors – (Automotive & Transportation: January-June) (4.8) 10.7 Billions of yen (16.1) Billions of yen △161 億円 (0.8) 1.4 0.2 (2.3) 2.1 Operating Income Change in This is because Effect Decrease in Foreign Reclassification of Operating Income 2020 Variable last year
Slide 8: Assets, Liabilities and Equity
Assets, Liabilities and Equity Total Assets 516,086 millions of yen Up ¥55,912 million from previous period Cash and Cash in Account |Y/Y : Current liabilities| Y/Y : Down ¥7,408 million Cash Flows from Operating Activities : Up ¥20,098 million ¥ 15,643 million ■Trade and other payables | Y/Y : Cash
Slide 9: Approach toward Achieving Management Target
Ⅱ. Approach toward Achieving Management Target Copyright THK CO., LTD. 2022. All rights reserved.
Slide 10: THK Management
THK Management Corporate Philosophy Providing innovative products to the world and generating new trends to contribute to the creation of an affluent society Vision Manufacturing and innovative services company Sustainability / ESG Copyright THK CO., LTD. 2022. All rights reserved. 9
Slide 11: Management Targets
Management Targets FY2026(5-year plan) Revenue 500.0 billions of yen Operating Income 100.0 billions of yen EPS ¥590 ROE 17% Industrial Machinery business and other Automotive ＆Transportation business Targets Revenue 365.0 billions of yen Targets Revenue 135.0 billions of yen Operating income 92.0 b
Slide 12: Key Initiatives in Business Lines
Key Initiatives in Business Lines Industrial Machinery business and other Automotive & Transportation Business Greater market share and a robust global More products for next- production system generation vehicles Progress on DX (Omni THK, OMNIedge) More aluminium products Development and Improved p
Slide 13: Advances in the THK DX Project and Omni THK
Advances in the THK DX Project and Omni THK Improved per capita sales and productivity（＝profitability） Maximize profits Sales Costs Customers (area, industry) Fixed Costs equipment Products, services Variable Costs personnel Unit price, quantity time other Measures for increasing sales Shift personn
Slide 14: Developing digital human assets
Developing digital human assets Further accelerate DX activities through whole-company upskilling Upper level Data use Image analysis Time series training （from 2019) Mid level analysis OJT training (from 2022) Management All staff attend e- learning lectures Entry level （from 2021) Predictive model
Slide 15: OMNIedge IoT Service for the Manufacturing Industry
OMNIedge IoT Service for the Manufacturing Industry Supporting smooth achievement of customer production plans - Possible to retro-fit to currently operating mechanical element components - Past expansion Products Functions and services - Jan. 2020 Services in China Launch of LM guide officially lau
Slide 16: OMNIedge Features: Rotating Parts Line-up
OMNIedge IoT Service for the Manufacturing Industry Additions to rotating parts product line-up - Signs now detectable in rotating as well as in linear motion parts - Features ・Able to readily use and immediately monitor ・Status clear to see from change in LED color ・Function to prevent things being
Slide 17: Development of New Business Areas
Development of New Business Areas Helping the service industry promote labor-saving whose demands have been increasing due to a labor shortage, soaring labor costs, and the advance of the IoT Shop Distribution Restaurant Seismic Isolation Renewable Home Automation Energy New business Medical areas E
Slide 18: New Products Contributing to Improved Productivity
New Products which Contribute to Improved Productivity Adaptive Hand Series TNH ・Multiple use robot hands which adapt to the nature of the work by adsorbing or gripping and are capable of stable transport ・All-round application, including to foods, medicines, cosmetics, household goods, bags, machin
Slide 19: Enhancement of the Global Manufacturing Structure
Enhancement of the Global Manufacturing Structure (Industrial Machinery Business） THK CHANGZHOU（CHINA） THK LIAONING（CHINA） New plant extension New plant extension To be completed in Mar. 2022 To be completed in Dec. 2022 ■Target products： ■Target products： Electric Actuator LM Guide Unit, etc Electr
Slide 20: Automotive and Transportation Business Initiative
Automotive and Transportation Business Initiative Horizontal Progress in CASE division of labor Entry from other Supply chain businesses changes Automotive and Transportation Business Initiatives Response to CASE（particularly response to EVs: e.g. smaller, lighter, less friction） Response to user ne
Slide 21: About Sustainability Management
About Sustainability Management Basic Thinking Minimizing the effect of minuses on corporate activity and enhancing the effect of pluses to create social and corporate shared value, as typified by sustainability, behaving in a way that not only optimizes the one, but optimizes the whole Most recent
Slide 22: Towards a Carbon Neutral Society
Towards a Carbon Neutral Society Medium- and Long-Term Targets for Carbon Neutrality Medium-Term Target By 2030, reduce CO2 emissions to 50% of 2018 levels Scope: THK Japan and Group companies in Japan 2018 emissions: 106,514 tons Long-Term Target By 2050, achieve net-zero CO2 emissions. Scope: Enti
Slide 23: Towards a Carbon Neutral Society
Towards a Carbon Neutral Society Contribution from products and services（Enhancing the effect of pluses） More linear motion More renewable energy More products products products contributing to smaller, lighter vehicles from (Contribution through （Direct contribution） move to EVs energy conserving a
Slide 24: THK 50th Anniversary Project: Education Outreach Program
THK 50th Anniversary Project （THK Education Outreach Program） Developing next-generation monodzukuri “creative developers” who create from “0” to ”1” to develop technology that is useful to people 2016-2021 Activities Promoted interest in and activities involving monodzukuri to junior and senior hig
Slide 25: THK 50th Anniversary Project: EntSherpa
THK 50th Anniversary Project （EntSherpa） Technology support services for start-ups Promptly providing optimum support for each stage Business expansion Real support for routes Until the new business Later stage is up and running start-ups ・Global supply systems ・Field engineering ・Selection of optim
Slide 26: Financial Forecast for Fiscal 2022
Ⅲ. Financial Forecast for Fiscal 2022 Copyright THK CO., LTD. 2022. All rights reserved.
Slide 27: Orders Received by Region (Industrial Machinery)
Orders Received by Region ＜Industrial Machinery Business＞ * exclude export THK CO., LTD. (Japan) % Change, Billions of YEN 50 133.5 111.8 77.1 40 50.4 32.7 30 2.8 (63.3)(56.0)(43.2)(17.9) 8.5 6.5 20 32.2 34.1 34.4 10 19.4 25.3 15.5 14.3 14.2 14.6 16.8 15.2 14.6 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12
Slide 28: Financial Forecast (Consolidated)
Financial Forecast (Consolidated) （Millions of Yen） 2022/12 2021/12 2020/12 Forecast Results Results Revenue 365,000 318,188 218,998 Y/Y +14.7％ +45.3％ -20.2％ Operating Income 43,000 30,268 -8,499 Y/Y +42.1％ - - Income before income taxes 43,200 29,984 -9,725 Y/Y +44.1％ - - Profit Attributable to Own
Slide 29: Financial Forecast (Unconsolidated)
Financial Forecast (Unconsolidated) （Millions of Yen） 2022/12 2021/12 2020/12 Forecast Results Results (Japanese GAAP) (Japanese GAAP) (Japanese GAAP) Net Sales 188,000 167,583 102,866 Y/Y ＋12.2％ ＋62.9％ -24.5％ Domestic 116,000 99,637 69,817 Y/Y ＋16.4％ ＋42.7％ -24.8％ Operating Income 20,000 16,718 365
Slide 30: Operating Income (FY2022E) Change Factors
(Ref.) Operating Income（FY2022E) – Change Factors – FY2021 Revenue: 231.9 billions of yen Revenue: 261.0 billions of yen Industrial Machinery Operating Income: 35.1 billions of yen FY2022(E) Operating Income: 43.9 billions of yen 43.9 2.8 Billions of yen 35.1 14.3 Billions of yen (7.9) Change in Var
Slide 31: Trends in COGS and SG&A
Trends in COGS and SG&A COGS Sales-cost ratio decreased by 3.9 points Y/Y 74.8% 71.1% 75.4% 78.8% ・Due to increase revenue COGS ratio 74.9% 251,181 238,434 214,490 207,130 Millions of Yen 172,567 2017/12 2018/12 2019/12 2020/12 2021/12 Irregular IFRS accounting period SG&A 20.5% SG&A ratio decreased
Slide 32: Trends in Orders, Sales and Backlog (Domestic)
【Support Statement】 － Trends in Orders, Sales and Backlog(Domestic – Unconsolidated) – （millions of yen） 80,000 Orders Sales 70,000 Backlog 60,000 50,000 40,000 30,000 20,000 10,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6
Slide 33: Trends in Orders Classified by Industry
【Support Statement】 –Trends in Orders Classified by Industry (Unconsolidated)– （millions of yen） 12,000 Machine Tool General Machinery 10,000 Electronics 8,000 6,000 4,000 2,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9