Sodick Co., Ltd. · TSE:6143
Sodick — 2Q FY17/12 Earnings Presentation
28 slides from Sodick's earnings presentation, Nov 21, 2017
Slide 1: 2Q FY17/12 Results Briefing
TSE 1st Section, 6143 Create Your Future 2Q FY17/12 Results Briefing November 21, 2017
Slide 2: Contents
Contents Consolidated Results for 2Q FY17/12 3 I. 2Q FY17/12 Financial Results Summary 4 II. FY17/12 Financial Results Projections 14 III. Figures for the Purpose of Comparison 19 (Reference Materials) 25 2
Slide 3: Consolidated Results for 2Q FY17/12
Consolidated Results for 2Q FY17/12 The Company has changed its fiscal year-end from March 31 to December 31, effective from the current FY2017, thereby eliminating the three-month difference between the parent s year- end and year-ends of its subsidiaries in China. The year ending December 31, 2017
Slide 4: I. 2Q FY17/12 Financial Results Summary
I. 2Q FY17/12 Financial Results Summary
Slide 5: Financial Results Highlights (on a Financial Report Basis)
Financial Results Highlights (on a Financial Report Basis) Thanks to large increase in the number of EDMs sold mainly in Greater China, both net sales and income are growing at a faster pace than projected. Income margins have largely improved thanks to increase in the number of products sold. (mill
Slide 6: Operating Income Margin
Ratio of operating income to net sales (Quarterly: on a financial report basis) Thanks to sales growth in Greater China, net sales were 21,229 million yen, reached its quarterly maximum. Income margin largely improved to a high level of 13.0% thanks to increase in the number of products sold. Sales
Slide 7: Financial Results by Segment (on a Financial Report Basis)
Financial Results by Segment (on a Financial Report Basis) Machine tool segment (million yen) In Japan, sales increased thanks to orders resulting from the incentive 2Q FY17/3 2Q FY17/12 program adopted in March as well as orders were received steadily from customers in the automotive and smartphone
Slide 8: Net Sales by Segment (on a Financial Report Basis)
Net Sales by Segment (on a Financial Report Basis) Maintenance services and consumables, a stable source of cash, account for about 15% of total net sales. Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services an
Slide 9: Overseas Sales Ratio by Segment (on a Financial Report Basis)
Overseas Sales Ratio by Segment (on a Financial Report Basis) * Due to irregular settlement of accounts resulting from the fiscal year-end change, figures for the January-September period of companies in China whose fiscal year ends on December 31 are included. (million yen) North and South Japan Eu
Slide 10: Balance Sheet
Balance Sheet Accounts receivable-trade and inventories soared in line with increasing orders. Net interest-bearing debt amounts to 2,853 million yen (a decrease of 1,253 million yen from the end of the previous fiscal year). Assets Liabilities and net assets (million yen) (million yen) 140,000 140,
Slide 11: Cash Flow
Cash Flow Cash flows from investing activities soared but were within cash flows from operating activities, and free cash flows maintained 1,150 million yen. (million yen) Major factors for increase and decrease 2Q FY17/3 FY17/3 2Q FY17/12 (compared to the same quarter in the previous fiscal year) I
Slide 12: FY17/12 Topics (New Products)
FY17/12 Topics (New Products) 1 Launching AL800G and ALN800G of high-speed and high-performance large wire-cut EDMs with a linear motor drive To the line of the AL series of wire electric discharge machines that get favorable reception in manufacturing precision metal mold and precision parts, AL800
Slide 13: FY17/12 Topics (Exhibitions)
FY17/12 Topics (Exhibitions) Exhibiting at EMO 2017 (an international metalworking trade fair) Sodick participated in EMO 2017, one of the world s largest machine tool trade fairs that was held in Hanover, Germany. We showcased for the first time in the world new models of ALC800G of a high-speed an
Slide 14: II. FY17/12 Financial Results Projections
II. FY17/12 Financial Results Projections
Slide 15: Market Environment
Market Environment Japan: We expect sustained solid demand due to government subsidy programs and replacement demand due to facility aging. North America: Although demand due to capital investments in the automotive industry appears to have been subsided, demand in the aerospace and medical equipmen
Slide 16: FY17/12 Financial Results Projections
FY17/12 Financial Results Projections *On a Financial Report Basis Results for the 2Q accumulation period was more than projected, and orders are currently growing at a good pace. Then both sales and income were revised upward. (million yen) FY17/12 FY17/12 Increase and decrease 2Q FY17/12 Progress
Slide 17: FY17/12 Financial Results Projections by Segment
FY17/12 Financial Results Projections by Segment *On a Financial Report Basis (million yen) Machine tool segment FY17/12 Increase and decrease In Japan, steady earnings are expected as 2Q FY17/12 Progress there is a demand in replacing aging Initial projections toward equipment. Revised Amount of (a
Slide 18: Policies for Shareholder Returns and Dividend Projections
Policies for Shareholder Returns and Dividend Projections As a dividend policy, we aim at a dividend yield on shareholders' equity of at least 2%. For FY2017 ending December 31,2017, we are planning for an annual dividend of ¥20 per share (interim dividend ¥10.0, fiscal year-end dividend ¥10.0). 1Di
Slide 19: III. Figures for the Purpose of Comparison
. Figures for the Purpose of Comparison * These figures, which have not been audited, are provided only for the purpose of comparison. * Figures for the purpose of comparison are the figures adjusted after we eliminated the three-month difference between the parent s year-end and the year-ends of it
Slide 20: Financial Results Highlights (Adjusted)
Financial Results Highlights * Figures for the purpose of comparison (Adjusted) Thanks to large increase in the number of EDMs sold mainly in Greater China, both net sales and income are growing at a faster pace than projected. Income margins have largely improved thanks to increase in the number of
Slide 21: Financial Results by Segment (Adjusted)
Financial Results by Segment * Figures for the purpose of comparison (Adjusted) (million yen) Machine tool segment In Japan, sales increased thanks to orders resulting from the Jan-Sep 2016 Jan-Sep 2017 Increase and decrease incentive program adopted in March as well as orders were received steadily
Slide 22: Overseas Sales Ratio by Segment (Adjusted)
Overseas Sales Ratio by Segment * Figures for the purpose of comparison (Adjusted) Expanding our business globally, overseas sales ratio is 67.6 (million yen) Japan North and South America Europe Greater China Asia 20,000 18,000 Machine 16,000 tools 14,000 Industrial 12,000 machinery 10,000 Food 8,0
Slide 23: FY17/12 Financial Results Projections (Adjusted)
FY17/12 Financial Results Projections * Figures for the purpose of comparison (Adjusted) As financial results for Jan-Sep 2017 was more than projected and orders are currently growing at a good pace, both sales and income are revised upward. (million yen) FY17/12 projection FY17/12 FY17/3 Increase a
Slide 24: FY17/12 Financial Results Projections by Segment (Adjusted)
FY17/12 Financial Results Projections by Segment * Figures for the purpose of comparison (Adjusted) (million yen) FY17/12 Jan-Sep FY17/3 Increase and decrease FY17/12 (Jan-Dec 2017 progress Jan-Sep 2017 toward Actual Revised projections Amount of money Rate revised Actual progress Machine tool 43,35
Slide 25: (Reference Materials)
Sodick (Reference Materials) A ti—i—s
Slide 26: Domestic and Overseas Sites
Domestic and Overseas Sites Sodick America Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant Corporation(San Jose) (Chicago) Software Co., Head Office/Research Ltd. and Technology Center Sodick Europe Ltd. (U.K.) Fukui Plant Sodick Deutschland GmbH Sodick Korea (Germany) Co., Ltd. Sodick (Thail
Slide 27: Participation in Major Exhibitions
Participation in Major Exhibitions The Company will participate in domestic and overseas exhibitions, thereby engaging in proactive marketing. Dates Location Exhibition Notes 2017 Oct. 11-13 Vietnam Hanoi MTA Vietnam METALEX VIETNAM (Vietnam s International Machine Tool and Metalworking Oct. 12-14 V
Slide 28: Disclaimer
Disclaimer This material has been prepared solely for the purpose of providing information and not for the purpose of inviting or soliciting purchases of specific goods, including the Company s shares, or such other marketing objectives. The information provided in this material is neither required