Yamazen Corporation · TSE:8051
Yamazen — Q3 FY3/24 Earnings Presentation
32 slides from Yamazen's earnings presentation, Feb 19, 2024
Slide 1: FY3/24 Supplementary (Q3) Materials for Financial Results
YAMAZEN CORPORATION FY3/24 Supplementary (Q3) Materials for Financial Results Stock Code: 8051
Slide 2: Agenda
ＡＧＥＮＤＡ I. FY3/24 (Q3) Financial Highlights II. Earnings Forecast for FY3/24, Medium-Term Management Plan III. Capital Policy and Shareholder Returns Appendix 2
Slide 3: Agenda: I. FY3/24 (Q3) Financial Highlights
ＡＧＥＮＤＡ I. FY3/24 (Q3) Financial Highlights II. Earnings Forecast for FY3/24, Medium-Term Management Plan III. Capital Policy and Shareholder Returns Appendix 3
Slide 4: FY3/24 (Q3) Consolidated Profit and Loss Results
FY3/24 (Q3) Consolidated Profit and Loss Results Percentage Full Year Plan FY3/23 FY3/24 (Million yen) change (Revised Sept. 13, Progress Rate (Q3) (Q3) YoY 2023) Net sales 393,991 378,130 -4.0% 500,000 75.6% Gross profit 58,201 55,824 -4.1% - - (Gross profit margin) 14.8% 14.8% -0.0ppt - - SG&A exp
Slide 5: Quarterly Trend in Consolidated Net Sales
Quarterly Trend in Consolidated Net Sales (million yen) FY3/21 FY3/22 FY3/23 FY3/24 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Q1 Q2 Q3 Q4 5
Slide 6: Outline of Business Segments
Outline of Business Segments Suppliers YAMAZEN Clients Users About 5,000 Production equipment About 3,000 FY3/24 Q3 companies companies (domestic and overseas) Domestic Machine 57.4 billion yen Tools Machine Tools Division Machine Tool H.Q. Overseas Machine 38.8 billion yen Sellers, Machinery (Machi
Slide 7: FY3/24 (Q3) Net Sales by Business Segment
FY3/24 (Q3) Net Sales by Business Segment FY3/23 FY3/24 Percentage (Million yen) change (Q3) (Q3) YoY Machine Tools Division 107,405 96,268 -10.4% Industrial Solution Division 72,426 67,867 -6.3% Tool & Engineering Division 79,111 77,195 -2.4% (Total for Production Equipment Business) 258,943 241,33
Slide 8: Net Sales Composition by Business (YoY Comparison)
Net Sales Composition by Business (YoY Comparison) Domestic production equipment: 47.9％ → 48.0％（+0.1ppt） Building Materials Business: 12.8％ → 14.1％（+1.3ppt） Overseas production equipment: 17.8％ → 15.9％（-2.0ppt） Home Products Business: 20.4％ → 21.0％（+0.6ppt） ーーーーーーーーーーーーーーーーーーーーーーーー ーーーーーーーーーーーーーーーーー
Slide 9: Production Equipment Segment Overview (Domestic/Overseas)
Production Equipment Segment Overview (Domestic/Overseas) Domestic Production Equipment Business: Sales of machine tools, etc. were weak, due to the lack of new investment activity in the semiconductor and automobile industries. Overall, sales of consumables such as industrial tools were also down c
Slide 10: Production Equipment Segment Quarterly Sales Trend
Production Equipment Segment Quarterly Sales Trend (Domestic/Overseas) (million yen) Domestic Machine Tools Domestic Industrial Solution Domestice T&E 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY3/21 FY3/22 FY3/23 FY3/24 (million yen) Over
Slide 11: Consumer Goods Segment Overview (Building Materials/Home Products)
Consumer Goods Segment Overview (Building Materials/Home Products) ・Building Materials Business: Amid stagnant demand, sales of solar power generation systems, storage batteries, etc. remained strong due to proposals of high-value-added products in response to consumers' desire to reduce spending du
Slide 12: Consumer Goods Segment Quarterly Sales Trend
Consumer Goods Segment Quarterly Sales Trend (Building Materials/Home Products) (million yen) Building materials 25,000 20,000 15,000 10,000 5,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY3/21 FY3/22 FY3/23 FY3/24 (million yen) Home products 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0
Slide 13: Factors for Changes in Operating Profit
Factors for Changes in Operating Profit (Million yen) Operating profit Decrease in Increase in gross profit SG&A expenses 2,376 2,219 Operating profit Depreciation and 12,138 Production equipment -2,831 amortization +912 7,541 Commission paid +1,095 Building +371 Advertising Materials +380 expenses
Slide 14: Consolidated Total Assets
Consolidated Total Assets Assets Liabilities and Total Assets (End of Mar. 2023) (End of Dec. 2023) (End of Dec. 2023) (End of Mar. 2023) Current liabilities 1,370 ｰ70 1,441 Current assets 2,385 -24 2,361 Long-term liabilities 216 +7 209 Noncurrent assets and Net assets 503 +0 deferred tax assets 1,
Slide 15: Agenda: II. Earnings Forecast, Medium-Term Management Plan
ＡＧＥＮＤＡ I. FY3/24 (Q3) Financial Highlights II. Earnings Forecast for FY3/24, Medium-Term Management Plan III. Capital Policy and Shareholder Returns Appendix 15
Slide 16: FY3/24 Disclosed Full-year Plan
FY3/24 Disclosed Full-year Plan FY3/24 FY3/24 Percentage FY3/23 (Million yen) Plan Plan change Results (Announced May 2023) (Revised Sept. 2023) YoY Net sales 527,263 550,000 500,000 -5.2% Operating profit 16,563 15,000 10,000 -39.6% Operating profit margin 3.1% 2.7% 2.0％ -1.1ppt Ordinary profit 17,
Slide 17: Full Year Business Plan - Net Sales by Business
Full Year Business Plan - Net Sales by Business FY3/24 Percentage FY3/23 change (Million yen) Plan Results (Revised Sept. 2023) YoY Machine Tools Division 151,214 132,000 -12.7% Industrial Solution Division 96,315 93,000 -3.4% Tool & Engineering Division 105,673 103,000 -2.5% (Total for Production E
Slide 18: FY3/24 Forecasts for the Production Equipment Business
FY3/24 Forecasts for the Production Equipment Business Percentage Percentage Net sales plan Segment profit Operating (Million yen) change change (Revised Sept. 2023) plan profit margin YoY YoY Production Equipment Business Total Full-year 328,000 -7.1% 8,000 -42.7% 2.4% Production Equipment Business
Slide 19: FY3/24 Forecasts for the Consumer Goods Business
FY3/24 Forecasts for the Consumer Goods Business Percentage Net sales plan Percentage change Segment profit Operating (Million yen) change (Revised Sept. 2023) YoY plan profit margin YoY Building Materials Division Full-year 69,000 ＋1.4% 2,400 ＋2.5% 3.5% Home Products Division Full-year 101,000 ＋0.3
Slide 20: Revision of Earnings Forecasts - Before/After Comparison
Revision of Earnings Forecasts - Before/After Comparison (Million yen) FY3/24 FY3/24 Percentage FY3/23 Difference Percentage plan plan Difference change Segment Business from initial change results (Announced (Revised Sept. YoY from initial May 2023) 2023) plan YoY plan Domestic Machine Tools Net sa
Slide 21: Medium-Term Management Plan: Disclosed Plan for Sales/Profit/Management Indicators
Medium-Term Management Plan: Disclosed Plan for Sales/Profit/Management Indicators FY3/23 results FY3/25 plan FY3/24 plan FY3/24 plan (Million yen) FY3/22 (First year of Medium- (Announced May 2023) (Revised Sept. 2023) (Final year of Medium-Term Term Management Plan) Management Plan) Net sales 501,
Slide 22: Agenda: III. Capital Policy and Shareholder Returns
ＡＧＥＮＤＡ I. FY3/24 (Q3) Financial Highlights II. Earnings Forecast for FY3/24, Medium-Term Management Plan III. Capital Policy and Shareholder Returns Appendix 22
Slide 23: Policy for Improving Corporate Value in the Medium/Long Term (1)
Policy for Improving Corporate Value in the Medium/Long Term (1) We aim to improve our corporate value by pursuing all of “earning capacity,” “yield of capital,” and “financial soundness.” Key issues Customers Net sales ROE maintained above the cost of ⚫ Expansion of green business Suppliers ⚫ Digit
Slide 24: Policy for Improving Corporate Value in the Medium/Long Term (2)
Policy for Improving Corporate Value in the Medium/Long Term (2) ⚫ It is assumed that the ratio of cost of shareholders’ equity will be around 7% and the average growth rate of basic operating cash flow until the final fiscal year of the medium-term management plan will be 3.82%*. ⚫ If ROE reaches 1
Slide 25: Capital Policy Initiatives Implemented in the Current Year
Capital Policy Initiatives Implemented in the Current Year Background Ratio Reduction of Number of shares Market of Timing Corporate Action Destination policy EPS ROE held stockholdings liquidity floating shares April 2021 Acquisition of Euro-yen CBs & treasury shares 3,870,900 Treasury shares 〇 － －
Slide 26: Change in Shareholder Returns Policy
Change in Shareholder Returns Policy (Disclosed on August 10, 2023) Reason for change: The shareholder returns policy is specified in terms of the consolidated payout ratio, however, because the current Medium-Term Management Plan incorporates an increase in depreciation and amortization due to busi
Slide 27: Shareholder Returns
Shareholder Returns ➢ FY3/23: Paid an interim and year-end dividend of 20 yen per share each, for an annual dividend of 40 yen per share. ➢ FY3/24: Plan to pay an interim dividend of 20 yen per share and a year-end dividend of 29 yen per share, for an annual dividend of 49 yen per share. (Yen) （％） 1
Slide 28: Appendix
YY / CR@SSING (~ YAMAZEN 2024 YAMAZEN Appendix
Slide 29: FAQ: Net Sales of Domestic Production Equipment and the Market Environment
[FAQ] Relationship Between Net Sales of Domestic Production Equipment Business and the Market Environment Regarding the discrepancies between the market environment and the production status of SME manufacturers (Machinery, Industrial Solutions and T&E Business) The supply-demand balance for semicon
Slide 30: FAQ: Background to Restructuring of the Industrial Tools & Equipment Business
[FAQ] Background to Restructuring of the Industrial Tools & Equipment Business In addition to the trends of development of EVs in the automobile field and automation and labor saving to cope with the decrease of the workforce, the initiatives for carbon neutrality and digitalization of business chan
Slide 31: FAQ: Competitive Advantage of YAMAZEN's Overseas Production Equipment Business
[FAQ] Competitive Advantage of YAMAZEN's Overseas Production Equipment Business YAMAZEN's Advantages (1) YAMAZEN's Advantages (2) Localized engineering capabilities that can support Extensive global network users' global strategies • Wide geographic coverage with 64 offices in 14 countries and regio
Slide 32: Pioneering a new future, with you all
Pioneering a new future, with you all [Note on forward-looking information] “The forward-looking statements in this document, including the Medium-Term Management Plan and forecasts, are based on information currently available to the Company and certain assumptions that the Company considers reason