Sodick Co., Ltd. · TSE:6143
Sodick — Q2 FY2024 Earnings Presentation
46 slides from Sodick's earnings presentation, Aug 16, 2024
Slide 1: 2Q FY2024/12 Results Briefing
Tokyo Stock Exchange Prime Market 6143 2Q FY2024/12 Results Briefing Sodick Co., Ltd. August 16, 2024
Slide 2: 2Q FY2024/12 Financial Results Summary
2Q FY2024/12 Financial Results Summary
Slide 3: Financial Results Highlights (2Q FY2024/12)
Financial Results Highlights (2Q FY2024/12) Expected to return to operating profitability for the full year, with the Consolidated progress in structural reforms to improve gross profit Results Net sales: 33.5 billion yen +0.3% YoY Operating profit: -0.05 billion yen –% Decrease in sales volume year
Slide 4: Financial Results Highlights (2Q FY2024/12)
Financial Results Highlights (2Q FY2024/12) Net sales increased by 14.8% quarter on quarter due to increased sales in machine tool, industrial machinery and other segments. Achieved net sales of nearly 18 billion yen and made progress in reducing cost of sales and fixed expenses mainly due to th
Slide 5: Analysis on Change in Operating Profit / Loss
Analysis on Change in Operating Profit / Loss Achieved net sales of nearly 18 billion yen in the first quarter since 4Q FY2022 and made progress in reducing cost of sales mainly due to the effects of structural reforms, resulting in an increase of about 1.6 billion yen in gross profit from the pre
Slide 6: Trends in Net Sales and Operating Profit Margin (Quarterly)
Trends in Net Sales and Operating Profit Margin (Quarterly) Net sales Machine tool sales Operating 25,000 Net sales decreased Recovery COVID-19 Progress in reducing profit margin fell sharply and then, due to the spread of crisis cost of sales and fixed Operating rates and COVID-19 expenses through
Slide 7: Financial Results by Segment
Financial Results by Segment FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 (million yen) QoQ Change 1Q 2Q 3Q 4Q 1Q 2Q Machine tool segment 12,227 11,973 11,084 11,421 11,471 13,404 16.8% Industrial machinery 2,393 2,024 1,949 2,262 1,994 2,438 22.3% Net sales segment Food machinery 998 1,449 2,125 2,328
Slide 8: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment ■ Machine Tool Segment Trends in net sales (Quarterly) (million yen) Japan: Overall domestic demand for EDMs (electrical 16,000 discharge machines) is expected to stagnate at around 13,404 10 billion yen. Dozens of deals related to applications for energy conservation su
Slide 9: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment ■ Industrial Machinery Segment Trends in net sales (Quarterly) (million yen) Japan: Sales progress in the first half of FY2024 was 4,000 about 30%. Both domestic and external demand were still sluggish due to a slowdown in automobile- related demand and sluggish sales of
Slide 10: Financial Results by Segment: Food Machinery Segment
Financial Results by Segment ■ Food Machinery Segment Trends in net sales (Quarterly) (million yen) 3,000 Strong demand for facilities related to noodle making machines in Japan and overseas and for aseptically- packaged cooked rice production systems for overseas markets 2,000 Although net sale
Slide 11: Financial Results by Segment: Other Segments
Financial Results by Segment ■ Other Segments Trends in net sales (Quarterly) (million yen) (Precision dies and mold operations involving the contract 2,000 manufacturing of precision connectors and other products; and elemental technology operations involving the sale of linear motors, ceramics com
Slide 12: Balance Sheet
Balance Sheet Total assets increased by about 9.3 billion yen from the end of the previous year Cash and deposits increased significantly due to transfers of time deposits from non-current assets to cash and deposits, increased borrowings, compensation for relocation of Suzhou Factory (China). F
Slide 13: Cash Flow
Cash Flow (million yen) FY2024 FY2020 FY2021 FY2022 FY2023 2Q Cash flow from operating 5,270 7,642 3,543 -14 6,021 activities Cash flow from investing -1,410 -2,203 -10,957 -2,492 -1,017 activities Cash flow from financing 1,665 -1,932 -6,012 1,421 869 activities Balance of cash and cash 38,255 44,2
Slide 14: FY2024/12 Outlook
Sodick FY2024/12 Outlook
Slide 15: Trends in JMTBA Order Volume and Sodick EDM Order Volume
Trends in JMTBA Order Volume and Sodick EDM (Electrical Discharge Machine) Order Volume (0.1 billion yen) Trends in JMTBA Machine Tool Orders (amount) and Sodick EDM Orders (units) (units) 200,000 800 2,000 Record-high monthly orders in Sodick (2021/3) 150,000 1,500 600 A fall due to the 2008 financ
Slide 16: Trends in Sodick EDMs Order Volume by Region (Quarterly)
Trends in Sodick EDMs Order Volume by Region (Quarterly) Production adjustment in Automobile continued. Aerospace North and Automobile production in North America increased year on Europe business was doing well. South America year, but the recovery trend has not fully gained 150 momentum. Demand fo
Slide 17: FY2024/12 Full-year Financial Results Projections
FY2024/12 Full-year Financial Results Projections Assumed slight increase in Net sales, mainly in overseas sales, due to depreciation trend of Japanese yen compared to the initial plan. Upwardly revised ordinary profit and profit for FY2024 in consideration of foreign exchange gains due to depre
Slide 18: FY2024/12 Full-year Financial Results Projections (by Segment)
FY2024/12 Full-year Financial Results Projections (by Segment) Machine tools: Net sales increased slightly due to the impact of depreciation of yen, but sales volume fell below the initial plan and profit forecast was reduced. Industrial machinery: Expected sales and profit growth mainly due to
Slide 19: Progress of the Medium-term Management Plan and Report on Initiatives in Each Segment
Progress of the Medium- term Management Plan and Report on the Initiatives in Each Segment
Slide 20: Long-term Vision and Goals
Long-term Vision and Goals New medium-term management plan to establish a growth foundation Promote business structure reforms Goals Strengthen stable revenue structure We contribute to a Create growth drivers sustainable society through manufacturing by further developing our own technologies
Slide 21: Future Growth Story
Future Growth Story 01 Reform the profitability of the overall existing businesses First, in the structural reform period, while strengthening the competitiveness of EDMs, the main pillar, we will reform the profitability of the overall existing businesses through (1) reducing dependence on China, (
Slide 22: Machine Tool Segment: Strengthening Business Foundation
Machine Tool Segment: Strengthening Business Foundation Continuing to be a total solution manufacturer that provides total support for customers’ manufacturing Accumulation of technical competence, including digital design (software), automation, and services, in addition to precision processing
Slide 23: Machine Tool Segment: Addressing Customer Issues
Machine Tool Segment: Addressing Customer Issues As a leading manufacturer of EDMs, we respond to the increasing advancement of manufacturing and work to resolve customer problems. Improve productivity, save energy (reduce costs), and address environmental issues simultaneously. Further streng
Slide 24: Machine Tool Segment: Strengthen Stock Business
Machine Tool Segment: Strengthen Stock Business Strengthen after-sales service business (sales of consumables and maintenance) and continuously treat customers in a comprehensive set of measures. Strengthen the high-quality consumables (wires) business, expand sales to other companies’ machinery
Slide 25: Machine Tool Segment: Solution Business Development
Machine Tool Segment: Solution Business Development A unified concept of “Sodick Smart Solution” will be announced in a full scale in each region in the future. Improved convenience by providing systems that can flexibly adapt to customers’ existing systems Strengthen of coordination with peri
Slide 26: Industrial Machinery Segment: Strengthen Sales in High Value-added Fields
Industrial Machinery Segment: Strengthen Sales in High Value-added Fields We aim to enhance profitability by further strengthening sales in the high-value-added molding market where Sodick’s injection molding machines have a competitive advantage (e.g. micro- and precision connector molding in the
Slide 27: Industrial Machinery Segment: Automation Solutions
Industrial Machinery Segment: Automation Solutions Contribute to solving problems at manufacturing sites by providing integrated production automation solutions from metal mold to molded product manufacturing ・ Achieve labor saving, productivity improvement, reduction of intermediate inventory, et
Slide 28: Food Machinery Segment: Expansion Strategy
Food Machinery Segment: Expansion Strategy Aim to become a global general food machinery manufacturer through sales expansion in overseas and business scale expansion by the development of new food machinery. Noodles Rice Demand for chilled and frozen noodles is expected to Trends in packaged rice
Slide 29: Food Machinery Segment: Development of New Products and Expansion into New Fields
Food Machinery Segment: Development of New Products and Expansion into New Fields Expanding into fields other than noodles and rice to become a general food machinery manufacturer Precooked side dishes New generation meat-like plant-based High-Temperature Pressure Sterilizer extends the food “Flour
Slide 30: Progress in Production Structure Reform
Progress in Production Structure Reform Consolidating production at Suzhou Factory to Amoy Factory in China to optimize the production scale in the country Started to drastically increase domestic production and achieved some results, but speed of progress remains an issue. Implementing a vari
Slide 31: M&A, Strategic Investments, Alliances
M&A, Strategic Investments, Alliances Aggressive allocation of capital to growth investments in line with the cash allocation stated in the medium-term management plan Started a capital and business alliance with Prima Additive S.r.l., an Italian metal 3D printer manufacturer, in April, 2024.
Slide 32: Financial Goals and Indicators
Financial Goal Indicators Targets 2023 Results 2024 Forecasts Capital ROE efficiency (5-year average) 8% or more 3.5% 3.1% Financial soundness Equity ratio 50% or more 57.5% 57.6% DOE*1 2% or more* 2.2% 2.3% Return to Shareholders Total return ratio*2 40% or more –*3 164% * Dividends per share: 27 y
Slide 33: Return to Shareholders
Return to Shareholders Basic Policy Dividend on equity (DOE) 2% or more(*1) and total return ratio 40% or more ■ Dividends per share 35 30 25 20 15 29 29 25 25 26 27 22 24 Interim 10 14 yen Year-end 5 15 yen 0 2017/12 2018/12 2019/12 2020/12 2021/12 2022/12 2023/12 2024/12 Interim 14 yen DOE 2.3 2.1
Slide 34: Progress in Cash Allocation (Three-Year Medium-Term Management Plan)
Progress in Cash Allocation (Three-Year Medium-Term Management Plan) Aggressive allocation of capital to growth investments Scrutinizing promising R&D investments and strategic investment projects, accelerating the speed of growth investments in the future <Investment <Medium-term management pla
Slide 35: Evaluation of Progress of Structural Reforms as of End of 2Q FY2024
Evaluation of Progress of Structural Reforms as of the End of 2Q FY2024 In accordance with the medium-term management plan announced in February this year, structural reforms have been initiated and are being implemented under a company-wide project structure. The optimization of the production
Slide 36: Appendix
Appendix 1. Trends in Financial Results 2. Trends in Indexes 3. Trends in Financial Results by Segment 4. Numbers of Sodick EDMs Ordered and Sold 5. Overseas Sales Ratio by Segment 6. Maintenance Service Ratio 7. Composition of Segments and Key Products 8. New Products 9. Exhibition Information
Slide 37: Trends in Financial Results (Quarterly)
Trends in Financial Results (Quarterly) (million yen) 1Q 2Q 3Q 4Q 1H 2H Full year FY2022/12 YoY YoY YoY YoY YoY YoY YoY Net sales 19,604 136.9% 19,712 97.6% 20,441 105.0% 20,737 97.8% 39,317 113.9% 41,178 101.3% 80,495 107.1% Cost of sales 13,050 135.0% 13,126 99.7% 13,865 110.3% 13,629 96.9% 26,176
Slide 38: Trends in Indexes
Trends in Indexes Number of employees (Persons) 18/12 19/06 19/12 20/06 20/12 21/06 21/12 22/06 22/12 23/06 23/12 24/06 Non-consolidated 755 801 841 869 886 914 924 987 1,087 1,170 1,183 1,192 Consolidated 3,676 3,625 3,579 3,576 3,633 3,670 3,683 3,772 3,746 3,778 3,562 3,487 *Not including transfe
Slide 39: Trends in Financial Results by Segment
Trends in Financial Results by Segment 1Q 2Q 3Q 4Q 1H 2H Full year FY2022 YoY YoY YoY YoY YoY YoY YoY Net sales 14,096 135.8% 14,149 102.8% 14,318 109.3% 13,928 97.8% 28,245 117.0% 28,247 103.3% 56,492 109.7% Machine tool Operating profit 2,143 238.6% 1,795 79.5% 1,568 74.5% 1,539 80.4% 3,938 124.8%
Slide 40: Numbers of Sodick EDMs Ordered and Sold
Numbers of Sodick EDMs Ordered and Sold Number of EDM ordered (Units) FY2022/12 FY2023/12 FY2024/12 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total North and South 81 58 56 83 278 70 63 70 74 277 65 68 133 America Europe 96 106 58 94 354 70 56 83 76 285 63 57 120 Greater China 578 619 340 292
Slide 41: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment (million yen) North and South Japan Europe Greater China Asia America 12,000 10,000 Others Food 8,000 machinery Industrial machinery 6,000 Machine tools 4,000 2,000 0 FY2023 2023年 FY2024 2024年 FY2023 2023年 FY2024 2024年 FY2023 2023年 FY2024 2024年 FY2023 2023年 FY2024 202
Slide 42: Maintenance Service Ratio
Maintenance Service Ratio Quarterly trends in maintenance services and Breakdown of machine sales and maintenance/ services/ consumables sales consumables (million yen) 3,500 6,109 6,553 3,000 Machine tools 2Q FY2023 2Q FY2024 2,500 Maintenance 2,000 services and 6,109 25.2% 6,553 26.3% 1,500 consum
Slide 43: Composition of Segments and Key Products
Composition of Segments and Key Products Segment Machine tools Industrial machinery Food machinery Die-sinker EDM Wire-cut EDM Horizontal injection molding machine Noodle making machines (noodle production line) Small-hole drilling EDM Metal 3D printer Aseptically-packaged cooked rice production sys
Slide 44: Released 2Q FY2024 New Product AL+ Series
Released 2Q FY2024 New Product AL+ Series Energy saving pump system reduces power consumption by 20% Up to 30% reduction in wire Wire-cut consumption in high plate thickness Linear motor drive EDM workpiece finishing High speed and high performance Almighty support for the usage Wire-cut EDM e
Slide 45: 2Q FY2024 Exhibition and Product Information
2Q FY2024 Exhibition and Product Information Exhibition information <Overview> FOOMA JAPAN 2024 Period: June 4–7, 2024 (4 days) Venue: Tokyo Big Sight East 1-8 Hall Visitors: About 113,777 Exhibited machines: “Flour Carne” meat-like PBF, dough molding machine for noodles, bread and confectionery, in
Slide 46: Notes
Notes This presentation material has been prepared exclusively for the purpose of providing information; the material was not created to advertise, solicit, market, etc., specific products or shares of the Company. The information included in this material is not required by the Financial Instrument