Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2010 Earnings Presentation
29 slides from Sumitomo Heavy Industries's earnings presentation, May 2011
Slide 1: Part 1: Financial Summary for FY2010 and Projections for FY2011
Part 1: Financial Summary for FY2010 and Projections for FY2011 May 2011
Slide 2: Financial Summary for FY2010
1-1 Financial Summary for FY2010 Unit: JPY billion ¾ Key points (1) Amount of orders ・ Increased in all segments in comparison 2010 2009 Change with the previous term. ・ Amount of orders are recovering, Orders 534.9 403.4 131.5 mainly in China and emerging nations. (2) Net sales Net sales 548.0 516.
Slide 3: Orders and Net Sales
1-2 Orders and Net Sales Unit: JPY billion Orders Net sales ¾ Increased mainly with mass-produced ¾ Shifted to an upward trend, reflecting machinery. After two and half years increased orders. ships has received new order. 400 400 291.1 296.1 Others 300 Others 300 264.5 4.6 4.6 251.7 251.9 243.8 42.
Slide 4: Operating Income by Segments
1-3 Operating Income by Segments Unit: JPY billion ¾ Comparisons with previous fiscal year 2010 2009 Change <Machinery components> Machinery Profits increased through cost reductions components 4.9 0.9 4.0 in addition to increased sales. <Precision machinery> Increased sales and significantly improv
Slide 5: Change in Operating Income (FY2009 to FY2010)
1-4 Change in Operating Income (FY2009 to FY2010) Unit: JPY billion Improvement of cost rate, etc. ＋16.4 45.8 Currency Impact of Exchange rate increased fluctuations Revenue 28.3 (2.6) Impact of ＋4.6 earthquake (0.3) Sales administrative costs, etc. (0. 6) FY2009 FY2010 May 2011
Slide 6: Consolidated Balance Sheet
1-5 Consolidated Balance Sheet Unit: JPY billion End March End March End March End March Change Change 2011 2010 2011 2010 Current assets 365.3 339.8 25.6 Liabilities 357.4 355.9 1.5 Notes and accounts Cash and deposits 52.5 62.5 (10.0) payable 132.0 108.0 23.9 Notes and accounts receivable 155.3 13
Slide 7: Consolidated Cash Flow Statement
1-6 Consolidated Cash Flow Statement Unit: JPY billion Category FY2010 FY2009 Change Operating activities 36.5 57.5 (21.0) Income before income taxes and 45.1 26.3 18.8 minority interests Depreciation 17.9 19.7 (1.8) Working capital (10.1) 14.3 (24.4) Others (income taxes etc.) (16.4) (2.8) (13.6) I
Slide 8: Performance Forecast for FY2011 by Segment
1-7 Performance Forecast for FY2011 by Segment ¾ Key Points (1) Orders will increase in comparison with the previous term in all segments. Growth rates of Machinery components and Construction machinery will be significant. (2) Net sales will increase as the amount of orders increase. (3) Operating
Slide 9: Performance Forecast for FY2011
1-8 Performance Forecast for FY2011 ¾ Key Points Dividends increased from JPY4 in FY 2009 to JPY8 in FY 2010. Dividends will increase to JPY10 for FY 2011, including interim dividends. Unit: JPY billion Forecast Forecast Forecast Record 1H FY2011 2H FY2011 FY2011 FY2010 Orders 290.0 330.0 620.0 534.
Slide 10: Part 2: Management Strategy
Part 2: Management Strategy May 2011
Slide 11: Previous Medium-Term Management Plan "Global 21"
2-1 Previous Medium-Term Management Plan “Global 21” During “Global 21” period, we managed to ride out the crisis by structural reform and shifted to recovery track. Also, we carried out the investment as planned. Global 21 Results ¾ Sales JPY850 billion Despite the impact of the global recession, F
Slide 12: Summary of "Global 21" Business Performance
2-2 Summary of “Global 21” Business Performance Net sales and invested capital Operating income and ROIC JPY billion JPY billion 700 100 Operating income 80 600 Operating income JPY548 billion60 JPY46 billion Net sales 40 500 Totals for profitable business units 20 400 0 Invested capital Totals for
Slide 13: Orders and Net Sales (FY2008 to FY2010)
2-3 Orders and Net Sales (FY2008 to FY2010） Orders Net Sales ¾ Machinery components, precision machinery and ¾ Machinery components, precision machinery and construction machinery hit bottom during the second construction machinery have been in a recovering half of FY 2008. trend since hitting botto
Slide 14: Operating Income (FY2008 – FY2010)
2-4 Operating Income (FY2008 – FY2010) ¾ Machinery components and precision machinery have been in a recovering trend since hitting bottom during the first half of FY 2009. Profit ratio decreased for construction machinery in the second half of FY 2010, due to the component procurement issues. Susta
Slide 15: Overseas Net Sales (by Former Business Segments)
2-5 Overseas Net Sales (by Former Business Segments) ¾ Net sales decreased significantly in Europe, as well as Asia excluding China, during the “Global 21” medium-term management plan period. Although the sale of construction machinery increased in China, where economical growth 150 150 was remarkab
Slide 16: Expansion of Global Bases
2-6 Expansion of Global Bases ¾ Expansion of manufacturing and sales bases was pursued aggressively under the “Global 21” medium-term management plan. FY2010 (Germany) FY2011 FY2011 & & 2012 2012 (China) (China) Expansion of the Expansion manufacturing plant for Expansion of the manufacturing of the
Slide 17: Representative First-class Products of "Global 21"
2-7 Representative First-class Products of “Global 21” Proton Proton Therapy Therapy System System Hydraulic Hydraulic Excavator Excavator “LEGEST” “LEGEST” Midsize Midsize Tankers Tankers (Advanced (Advanced precision precision machinery) machinery) (Construction (Construction machinery) machinery)
Slide 18: Moving on from "Global 21" to "Innovation 21"
2-8 Moving on from “Global 21” to “Innovation 21” ¾ Activities to enhance the corporate structure and investments for global growth were performed under the “Global 21” medium-term management plan, during drastic changes in the management environment. ¾ On the other hand, issues that needed to be wo
Slide 19: New Medium-Term Management Plan "Innovation 21"
2-9 New Medium-Term Management Plan “Innovation 21” Net Net sales sales JPY730 JPY730 billion billion Targets Targets for for Operating Operating income income JPY73 JPY73 billion billion FY2013 FY2013 ROIC ROIC 10% 10% or or above above “Strong “Strong and and Powerful Powerful SHI” SHI” Corporate
Slide 20: "Innovation 21" Business Performance
2-10 “Innovation 21” Business Performance Net sales and invested capital Operating income and ROIC JPY billion JPY billion 1,000 100 Operating income JPY７3 billion （FY13 plan） 80 900 60 JPY46 billion Operating income 800 JPY７30 billion 40 JPY54 billion （FY13 plan） （FY11 forecast） 700 Totals for prof
Slide 21: FY 2013 Plan and Principal Measures by Segment
2-11 FY 2013 Plan and Principal Measures by Segment Unit: JPY billion Business Record FY2010 Plan FY2013 Operating Operating Principal Measures Segment Net sales Net sales income income ・ Pursue a synergy with Hansen Industrial Transmissions (HIT). Machinery components 74.6 4.9 102.0 12.0 ・ Increase
Slide 22: FY 2011 to 2013 Net Sales and Operating Income
2-12 FY 2011 to 2013 Net Sales and Operating Income ¾ Mass-produced machinery (Machinery Components & Construction Machinery): Increase sales to markets in emerging nations. Others ¾ Precision machinery: Expand the scale of business in cutting edge fields. Environmental facilities and plants ¾ Heavy
Slide 23: Regional Net Sales (by New Business Segment)
2-13 Regional Net Sales (by New Business Segment) ¾ Focus to sales increase of machinery components, Unit: JPY billion 150 Others precision machinery and construction machinery in all regions. Environmental facilities and plants 150 Ships 100 Europe Industrial machinery 100 China Construction machin
Slide 24: Expansion and Utilization of Global Network
2-14-a Expansion and Utilization of Global Network ¾ Promote independence of sites as well as cooperation between sites, maintain and expand regional headquarter functions, and upgrade of functions provided from Japan to support these, so as to create competitively advantageous conditions on a globa
Slide 25: Expansion and Utilization of Global Network
2-14-b Expansion and Utilization of Global Network ¾ Promote self-subsistence and cooperation between sites, maintain and expand regional headquarter functions, as well as the upgrading of functions provided from Japan to support these to create competitively advantageous conditions on a global scal
Slide 26: Product Innovation
2-15 Product Innovation ¾ Continuously supply “first-class products” to markets by developing products through the integrated efforts of the Corporate Technology Operations Group and business units. ¾ Increase the value of equipment and systems with innovative components and technical modules. Solar
Slide 27: Process Innovation
2-16 Process Innovation ¾ Spread within the SHI group Toyota Production System (TPS) that was successfully employed at the shipbuilding business. Machinery components Ships Environmental facilities Mid size speed Large size and plants reducer speed reducer Introduce the Toyota Installation of boiler
Slide 28: Management Policies FY2011 to 2013
2-17 Management Policies FY2011 to 2013: Succeed basic policies from the previous medium-term management plan “Global 21”. Aim for a “Strong and Powerful SHI”, where sustained growth is possible. 9Abide Abide by by Management Management Discipline Discipline and and Financial Financial Discipline, D
Slide 29: 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 — FY2010 Earnings Presentation on 6ix