Slide 1: Financial Results Briefing for Fiscal 2015
FINANCIAL RESULTS BRIEFING FOR FISCAL 2015 May 13rd 2016 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 informatio
Slide 2: Contents
Contents Ⅰ. Financial Results for Fiscal 2015 Ⅱ. About Medium-Term Management Plan (FY14-16) Ⅲ. About Future Measures Ⅳ. Topics Ⅴ. Financial Forecast for Fiscal 2016 Copyright THK CO., LTD. 2016. All rights reserved.
Slide 3: Ⅰ. Financial Results for Fiscal 2015
Ⅰ. Financial Results for Fiscal 2015 Copyright THK CO., LTD. 2016. All rights reserved.
Slide 4: Financial Highlights
Financial Highlights *Geographic sales is based on Net sales increased by 10.5% year on year to 240.4 billion yen where our customers are located In Japan, demand of machine tool in general such as small machine tools for smartphones, which were strong in the first half, declined in summer. In addit
Slide 5: Trend in Net Sales
Trend in Net Sales Asia and other | Y/Y Up 0.4% 240,478 *China (Industrial Equipment) Down 2.1% *Taiwan Up 4.1% 217,678 *Singapore Down 31.4% Asia and other 196,866 49,211 millions of yen 185,466 49,003 Europe | Y/Y Up 48.7% 36,707 Europe 168,366 *Machine tools Up 12.7% 37,085 30,424 *General machin
Slide 6: [Reference] Operating Income - Cause of Change - FY2014
[Reference] Operating Income - Cause of Change - (2.0) +0.5 +0.6 Japan (2.7) 19,719 million (1.5) (0.1) The Americas 2,096 million 28.3 23.1 Europe Billions Billions 632 million of yen of yen China (1,344) million Other 1,267 million Adjustments 797 million FY2014 Effect 数 Increase 固 in M&A M Change
Slide 7: Assets, Liabilities and Net Assets
Assets, Liabilities and Net Assets Cash and Cash in Account | Y/Y : Total Assets Current Liabilities | Y/Y : Down ¥ 28,275 million Down ¥ 598 million Cash Flows from Operating Activities : 407,808 millions of yen ■Accounts Payable | Y/Y : ¥ 19,753 million Up ¥ 7,119 million Cash Flows from Investing
Slide 8: Ⅱ. About Medium-Term Management Plan (FY14-16)
Ⅱ. About Medium-Term Management Plan (FY14-16) Copyright THK CO., LTD. 2016. All rights reserved.
Slide 9: In-house review of Medium-Term Management Plan is now in place
About Medium-Term Management Plan (FY14-16) Gap with Assumptions Positive Factor Negative Factor Make TRA (automotive parts) Global economic growth rate slowed down a member of our corporate group (Assumptions:3.8% Results:3.2%) *Results are average from 2014 to 2015 based on IMF In-house review of
Slide 10: Review of Medium-Term Management Plan
Review of Medium-Term Management Plan (FY14-16) Re-establish sales strategy Progress on the measures is generally good <Enhancement of sales network> <Strengthening of acquiring volume zone> <Reinforcement of marketing function> China The total of agencies in China The sales of products for volume z
Slide 11: Ⅲ. About Future Measures
Ⅲ. About Future Measures Copyright THK CO., LTD. 2016. All rights reserved.
Slide 12: New Growth Strategy: Expansion of Business Areas
New Growth Strategy Expansion of Business Areas Copyright THK CO., LTD. 2016. All rights reserved. 11
Slide 13: Future Major Measures
Future Major Measures FY2018 Expansion of Top Line FY2017 Transportation FY2016(E) 262.0 21.0 Industrial equipment FY2015 Industrial equipment- 240.4 related and other Units: billions of yen 23.1 FY2014 217.6 Strengthening of Bottom Line 28.3 <Industrial equipment-related and other> <Transportation>
Slide 14: Measures of Industrial Equipment
Measures of Industrial Equipment トップライン拡大 Expansion of Top Line Before Future Preparations for Visualization of markets Harvest results of hardware and software sides and customers various measures Mass production A wide range Enhancement of machine of customers sales network *including products for
Slide 15: Measures of Transportation Equipment
Measures of Transportation Equipment Expansion of Establishment of Global-level Business Base THK RHYTHM THK RHYTHM AUTOMOTIVE L&S Business THK RHYTHM AUTOMOTIVE THK RHYTHM AUTOMOTIVE CANADA (CAN) MICHIGAN (USA) New Products for Automobile THK RHYTHM AUTOMOTIVE THK RHYTHM AUTOMOTIVE GmbH (DEU) CZECH
Slide 16: Future Synergy of Transportation Equipment
Future Synergy of Transportation Equipment + + TRA <Expansion of Top Line> <Strengthening of Bottom Line> Technical exchanges Development of new products Promotion of shared purchase + TRA TRA <Expansion of Top Line> <Strengthening of Bottom Line> Strengthening of Mutual use of factories sales integ
Slide 17: Ⅳ. Topics
Ⅳ. Topics Copyright THK CO., LTD. 2016. All rights reserved.
Slide 18: THK Chubu Technical Support
Enhancement of Sales Network THK Chubu Technical Support March 7, 2016 Opened in Toyota Branch Display two-arm humanoid robot “NEXTAGE ” ® Provide technical support, test and sales with one-stop service Showroom Robot exhibition hall Seismic Isolation System Copyright THK CO., LTD. 2016. All rights
Slide 19: Enhancement of the Global Manufacturing Structure
Enhancement of the Global Manufacturing Structure Overseas production bases 23 bases TRA GmbH (DEU) TRA CZECH (CZE) Europe TRA MICHIGAN (USA) TRA CANADA (CAN) Sales: 12 R&D: The Americas Sales: 9 TME (FRA) TMI (IRL) TMA (USA) TRNA (USA) TRMX (MEX) THK CHANGZHOU Group Headquarters Scheduled to start
Slide 20: Seismic Isolation and Damping System
Develop the Consumer Goods Domain on a Company-wide Level : Seismic Isolation and Damping System Seismic isolation and Seismic Isolation damping system for Seismic Isolation and Platforms Table housing and other 1% Damping for Building Seismic Isolation Platforms Table 24% Sales Up 55% from previous
Slide 21: Develop the Consumer Goods Domain on a Company-wide Level
Develop the Consumer Goods Domain on a Company-wide Level Aircraft Medical Equipment Table Sliding System Surgical Robot CT Scanner Control Stick Reclining Seats Linear Motion Core Technology Robots Renewable Energy Solar Light Generator Support Robot used in Plant Support Robot for Robot Hand Disas
Slide 22: Upper-body Humanoid Robot NEXTAGE
Upper-body Humanoid Robot ～ NEXTAGE ～ ® Develop peripheral technologies for upper-body humanoid robot Unmanned carrier for Hand changer the exclusive use of NEXTAGE® with lighting and camera Generic pneumatic Electrical manual chuck chuck hand NEXTAGE ® Copyright THK CO., LTD. 2016. All rights reser
Slide 23: New Products: SEED Solutions
New Products: SEED Solutions Solutions to the establishment of next-generation robot systems Smart Actuators ～ Possible to produce next-generation robots easily ～ Generic robot hand Driver Actuator Simple Automation ～ Possible to produce low-cost automated equipment easily ～ 13-axis system <Example
Slide 24: Ⅴ. Financial Forecast for Fiscal 2016
Ⅴ. Financial Forecast for Fiscal 2016 Copyright THK CO., LTD. 2016. All rights reserved.
Slide 25: Orders Received by Region
Orders Received by Region THK (Domestic) % Change, Billions of Yen 20.7 19.4 30.5 13.5 12.2 30 0.5 (10.5) (4.1) (11.1) 20 10 20.9 23.5 23.2 22.2 23.5 23.6 20.8 21.3 20.8 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2014 2015 2016 *exclude export THK Europe THK Holdings of America % Change, Millons of E
Slide 26: Financial Forecast (Consolidated)
Financial Forecast (Consolidated) (Millions of yen) 2017/3 2016/3 2015/3 Forecast Net Sales 262,000 240,478 217,678 Y/Y +8.9％ +10.5% +17.4% Operating Income 21,000 23,169 28,388 Y/Y -9.4％ -18.4% +63.4% Ordinary Income 19,600 19,140 34,031 Y/Y +2.4％ -43.8% +44.1% Net Income Attributable to Owners of
Slide 27: Financial Forecast (Unconsolidated)
Financial Forecast (Unconsolidated) (Millions of yen) 2017/3 2016/3 2015/3 Forecast Net Sales 115,800 126,127 132,786 Y/Y -8.2% -5.0% +18.7% Domestic 82,900 87,890 90,081 Y/Y -5.7% -2.4% +17.9% Operating Income 11,600 17,925 21,899 Y/Y -35.3% -18.1% +58.6% Ordinary 11,000 16,068 27,378 Income Y/Y -3
Slide 28: Trends in COGS and SG&A
Trends in COGS and SG&A COGS COGS ratio 72.6% 73.7% 71.5% 69.2% 71.8% Sales-cost ratio increased by 2.6 points Y/Y ・Increase due to consolidation of TRA ・Increase of fixed cost due to investments for the future growth 172,711 142,891 150,653 124,067 132,562 Millions of yen 2012/3 2013/3 2014/3 2015/
Slide 29: Trends in Orders, Sales and Backlog (Domestic – Unconsolidated)
Support Statement –Trends in Orders, Sales and Backlog (Domestic – Unconsolidated) - (Millions of yen) 30,000 Orders Sales Backlog 25,000 20,000 15,000 10,000 5,000 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 10-12 1-3 4-6
Slide 30: Trends in Orders Classified by Industry (Unconsolidated)
Support Statement –Trends in Orders Classified by Industry (Unconsolidated)– (Millions of yen) 7,000 Machine Tool 6,000 General Machinery Electronics 5,000 4,000 3,000 2,000 1,000 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-