Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2009 Earnings Presentation
30 slides from Sumitomo Heavy Industries's earnings presentation, 2010
Slide 1: Part I: Financial Summary for FY2009 and Projections for FY2010
Part I: Financial Summary for FY2009 and Projections for FY2010
Slide 2: Financial Summary for FY2009
1-1 Financial Summary for FY2009 ■ Key points Unit: JPY billion (1) Orders ・ Significant drop occurred in all market FY2009 FY2008 Change segments in comparison with previous year. Orders 403.4 600.7 △197.2 ・ Mass-produced machinery hit bottom during fourth quarter of FY2008 and since Net sales 516.
Slide 3: First Half Transition of Orders and Net Sales
1-2 First Half Transition of Orders and Net Sales Unit: JPY billion Orders Net sales Orders reached bottom during second half of FY2008 and Net sales underwent gradual recovery, reflecting status have been transitioning in recovery trend. of orders. Figures are expected to increase further during se
Slide 4: Operating Income by Segment
1-3 Operating Income by Segment ■ Comparison with previous year Unit: JPY billion <Mass-produced machinery> FY2009 FY2008 Change Revenue deteriorated due to reduction of sales for PTC, plastics, precision machinery and others. Mass-produced <Environmental protection facilities, plants and others> ma
Slide 5: Quarterly Transition of Operating Income
1-4 Quarterly Transition of Operating Income Mass-produced machinery and construction machinery show clear signs of transition for recovery. Improvements take place with heavy machinery, due to cost reduction efforts. Unit: JPY billion 200 Sales Operating income 156.8 150 31.2 Unit: JPY billion 126.
Slide 6: Analysis of Change in Operating Income (FY2008 to FY2009)
1-5 Analysis of Change in Operating Income (FY2008 to FY2009) Unit: JPY billion 56.9 28.3 Impact of income Rise in reduction material Currency △26.9 costs exchange rate Deterioration Sales △2.2 fluctuations of cost rate, administrative △3.7 etc. costs △3.6 ＋7.7 FY2008 FY2009
Slide 7: Consolidated Balance Sheet
1-6 Consolidated Balance Sheet Unit: JPY billion End arch End March Change End March End March Change 2010 2009 2010 2009 Current assets 339.8 380.3 △40.5 Liabilities 355.9 418.7 △62.8 Cash and deposits 62.5 44.7 17.8 Notes and accounts payable 108.0 136.1 △28.1 Notes and accounts payable 131.9 155.
Slide 8: Consolidated Statement of Cash Flow
1-7 Consolidated Statement of Cash Flow Unit: JPY billion Category FY2009 FY2008 Change Operating activities 57.5 34.7 22.8 Operating income before interest 46.8 69.1 △22.3 payments amortization and depreciation Working capital 14.3 △14.4 28.7 Others △3.6 △20.1 16.5 Investing activities △14.0 △35.9
Slide 9: FY2010 Forecast of Business Performance by Segment
1-8 FY2010 Forecast of Business Performance by Segment ■ Key points (1) Recovery of orders for mass-produced machinery and construction machinery will fully start commencing FY2010. Severe conditions will continue with regards to environmental protection facilities, plants and others, as well as ste
Slide 10: FY2010 Forecast of Business Performance
1-9 FY2010 Forecast of Business Performance ■ Key points (1) Operating income is expected to improve for mass-produced machinery segment to levels of FY2008. (2) Net sales are expected to show slight increase from figures of FY2009, with mass-produced machinery segment making up for losses in indust
Slide 11: Part II: Management Strategy
Part II: Management Strategy
Slide 12: Medium-term Management Plan: Perception of Current Status
2-1 Medium-term Management Plan: Perception of Current Status Global 21 Perception of current status Targets for ¾ Net sales of JPY850.0 billion 9 Although realization of quantitative targets set in FY2010 ¾ Operating income of JPY100.0 “Global 21” is difficult, growth is occurring through billion c
Slide 13: Business Performance Transition
2-2 Business Performance Transition Record for FY2009: Figures fell below figures of previous year, with net sales of JPY516.2 billion and operating income of JPY28.3 billion. Outlook for FY2010: Increased revenue and profits projected with net sales reaching JPY540 billion and operating income reac
Slide 14: Management Discipline and Structural Reforms
2-3 Management Discipline and Structural Reforms ■ ■ Management Management fundamental: fundamental: “Self-subsistence “Self-subsistence and and Cooperation” Cooperation” Self-subsistence Self-subsistence (autonomy) (autonomy) and and cooperation cooperation (value (value chain) chain) of of individ
Slide 15: Business Portfolio and Value Chain: One-SHI
2-4 Business Portfolio and Value Chain: One-SHI Social & industrial infrastructures <Value chain of markets> Living consumption Transport & Environment Material Liquid crystal & IT & digital Medical, material & Automotive bioscience, physics Services handling energy processing semiconductor applianc
Slide 16: Wholly Owned Subsidiary Conversion of Nihon Spindle Manufacturing Co., Ltd.
2-5 Wholly Owned Subsidiary Conversion of Nihon Spindle Manufacturing Co., Ltd. ■ Key points SHI SHI Nihon Nihon Spindle Spindle ・・ Maximization Maximization of of Engineering development capabilities Mfg. Mfg. synergic effects synergic effects ・・ Enhancement Enhancement ofof ・・ Improvement Improvem
Slide 17: Value Chain of SHI Group and Nihon Spindle Mfg. Co., Ltd.
Value Chain of SHI Group and Nihon Spindle Mfg. Co., Ltd. 2-6 Social & industrial infrastructure <Value chain of markets> Living consumption Transport & Environment Material Liquid crystal & IT & digital Medical, material & Automotive bioscience, physics Services handling energy processing semicondu
Slide 18: Change in Disclosure of Segment Information
2-7 Change in Disclosure of Segment Information Business segments and names of business segments were changed as shown below, due to changes in corporate management segments implemented in April 2010: JPY billion 600 Sales for FY2009 (JPY516.2 billion) Services Others 8.8 Environmental facilities an
Slide 19: Transition of Orders and Net Sales by New Segments
2-8 Transition of Orders and Net Sales by New Segments Orders Net Sales Machinery components, precision machinery and construction machinery hit Machinery components, precision machinery and construction machinery hit bottom during second half of FY2008 and have since been in recovery trend. bottom
Slide 20: FY2010 Ordering Environment by New Segments
2-9 FY2010 Ordering Environment by New Segments ■ Mass-produced machinery is recovering, but overall level still remains low. ■ Ordering environment remains quite severe for heavy machinery, due in part to delayed orders for major projects. Unit: JPY billion F2010 amount of orders New segment Orderi
Slide 21: Machinery Components
2-10 Machinery Components 50 Unit: JPY billion Power transmission & control: Orders FY2009: Orders and net sales dropped for practically all models, due to continuing downturn of markets for 40.0 machines across the board. 29.4 32.0 37.0 0 FY2010: Growing markets in China and other 1H-FY2009 2H-FY20
Slide 22: Precision Machinery
2-11 Precision Machinery 100 Unit: JPY billion Plastic machinery: Orders 74.0 66.0 63.3 FY2009: Although there has been a recovering trend Advanced 42.8 41.5 precision primarily for products intended for emerging nations, overall 50 38.1 33.5 machinery orders and net sales dropped in comparison with
Slide 23: Construction Machinery
2-12 Construction Machinery 100 Unit: JPY billion Orders Hydraulic excavators: 60.0 60.0 FY2009: Significant reduction in demand in comparison with 54.0 46.6 Cranes 10.5 same period of previous year, except for China. Tangshan 50 9.4 14.5 17.6 Manufacturing Plant is operating in good working order.
Slide 24: Construction of Manufacturing Plant in Indonesia
2-13 Construction of Manufacturing Plant in Indonesia ■ Key points (1) Manufacturing plant is constructed as location for supplying hydraulic excavator to ASEAN region. (2) Indonesia comprises about half of all hydraulic excavator market for entire ASEAN region and further expansion of market can al
Slide 25: Industrial Machinery
2-14 Industrial Machinery 50 Unit: JPY billion Forging press & steel manufacturing machinery: Orders FY2009: Amount of orders dropped significantly due to reduction of investments made in automotive industry. Net sales, however, Forging press transitioned in steady manner, due to backlog of orders.
Slide 26: Ships
2-15 Ships 50 Unit: JPY billion Ships: Orders FY2009: Number of orders was nil, with no signs of market recovery in sight. Sales increased over previous period by one vessel, with nine vessels sold. Profit ratio deteriorated due to impact of rising cost of raw materials and currency exchange rate 13
Slide 27: Environmental Facilities and Plants
2-16 Environmental Facilities and Plants Unit: JPY billion 50 Orders CFB boilers for IPP: FY2009: Both orders and net sales dropped due to sluggish 33.1 38.0 Pressure 6.5 vessels, etc. performance of industrial boilers for electric power generation both in 29.5 2.3 27.0 4.9 4.5 domestic and overseas
Slide 28: Net Sales Overseas
2-17 Net Sales Overseas Unit: JPY billion Transition of net sales overseas FY2010 Net Sales Overseas by Segments (Plan) Unit: JPY billion Environmental Machinery components facilities and plants 1% 700 Ships 12% 642.9 25% 600 69.7 Others 47.2 China 516.2 540.0 Precision 24% machinery 500 62.6 Asia 8
Slide 29: Management Policies
2-18 Management Policies 9 9 Abide Abide by by Management Management Discipline Discipline and and Financial Financial Discipline Discipline regulations, regulations, seek seek to to establish establish sustainable sustainable competitive competitive edge edge and and aim aim for for sound sound dev
Slide 30: Forward-looking statements notice
All forward-looking statements regarding the company’s future performance are based on information currently available to Sumitomo Heavy Industries and determined subjectively. Future performance is not guaranteed and all information related to future performance contained herein is subject to chang
Sumitomo Heavy Industries — FY2009 Earnings Presentation on 6ix