Thk Co., Ltd. · TSE:6481

Thk — H1 2020 Earnings Presentation

27 slides from Thk's earnings presentation, Aug 7, 2020

  1. Slide 1: Interim Financial Results Briefing

    INTERIM FINANCIAL RESULTS BRIEFING August 7th 2020 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 information curr

  2. Slide 2: Contents

    Contents Ⅰ. Financial Results for 1st Half of Fiscal 2020 Ⅱ. Major Measures Ⅲ. Financial Forecast for Fiscal 2020 Copyright THK CO., LTD. 2020. All rights reserved.

  3. Slide 3: Financial Results for 1st Half of Fiscal 2020

    Ⅰ. Financial Results for 1st Half of Fiscal 2020 Copyright THK CO., LTD. 2020. All rights reserved.

  4. Slide 4: Financial Highlights

    Financial Highlights ※地域別売上高は Consolidated sales revenue: down 30.2％ y/y, ¥ 103.0 billion 海外売上高ベース Automobile manufacturing suspended in the face of global COVID-19 pandemic, greatly impacting Automotive & Transportation business. Within Industrial Machinery business, demand for machine tools (mainl

  5. Slide 5: Trend in Revenue

    179,450 Trend in Revenue millions of yen *The growth rates are just for reference 174,029 Asia and other 14,604 14,168 ●Taiwan Down 31.9％ ●Singapore Down 9.6％ 24,971 147,573 ●India Down 68.2％ 24,256 11,672 China 127,026 ●Machine tools Down 7.7％ 16,134 ●General machinery 30,303 26,677 10,348 Down 11.

  6. Slide 6: Operating Income Change Factors (Industrial Machinery)

    (Ref.) Operating Income – Change Factors – (Industrial Machinery: January-June) 16.5 Billions of yen 160 (1.7) 3.6 Billions of yen (13.6) (0.4) 3.5 (0.9) Billions of yen Operating Income Effect Change in Foreign Reclassification Decrease in Operating Income 1H 2019 due to Variable Exchange of other

  7. Slide 7: Operating Income Change Factors (Automotive & Transportation)

    (Ref.) Operating Income – Change Factors – (Automotive &Transportation: January-June) (1.7) Billions of yen (4.9) Billions of yen ＋3.2 ＋0.2 ＋0.1 (5.8) (0.9) Operating Income Effect Reclassification Decrease in Change in Foreign Operating Income 1H 2019 due to of other income Fixed Cost Variable Exch

  8. Slide 8: Assets, Liabilities and Equity

    Assets, Liabilities and Equity Total Assets 456,281 millions of yen Down ¥12,663 million from previous period Cash and Cash in Account |Y/Y : Current liabilities| Y/Y : Up ¥3,581 million Down ¥10,194 million Cash Flows from Operating Activities : ¥13,007 million ■Trade and other payables | Y/Y : Cas

  9. Slide 9: Major Measures

    Ⅱ. Major Measures Copyright THK CO., LTD. 2020. All rights reserved.

  10. Slide 10: THK Measures to Combat COVID-19

    THK Measures to Combat COVID-19 ■THK Response ・Held global response meetings on every Swift situation assessment, business day from Feb. 3, 2020 response ・Peak over 90% teleworking at Set up responsive working HQ divisions systems ・Created a value chain team Continued lifeline operations ・Attentive

  11. Slide 11: COVID-19 Business Opportunities

    COVID-19 Business Opportunities Greater semiconductor demand from teleworking, online study Greater distribution, shop and other automation demand Review of hardware sharing in automobiles and other areas Greater medical demand COVID-19 impact fueling short-term adjustments but expect greater medium

  12. Slide 12: Growth Strategy

    Growth Strategy Expansion of Business Areas Copyright THK CO., LTD. 2020. All rights reserved. 11

  13. Slide 13: Key Initiatives in Business Lines

    Key Initiatives in Business Lines Expansion of Top Line FY2020_1H FY2020_1H Industrial Machinery Automotive & Transportation Revenue 71.9billions of yen Revenue 31.1billions of yen Y/Y -26.3％ Y/Y -37.6％ Strategic sales for a wide range of customers FY2020_1H Expansion of L&S Business Active and effi

  14. Slide 14: Omni THK Development

    Omni THK Development Expanding major customer purchasing systems Customers can buy THK products via their own purchasing systems Ex: Customer group purchasing system Core system *Displays price by company and delivery Omni THK screen Order Customer Group Company A B C D E COVID-19 activities ・Increa

  15. Slide 15: OMNI edge Development

    OMNI edge Development Main industries introducing OMNI edge Auto parts, electronic parts, materials (plastics, glass, rubber), foodstuffs, medicines, cosmetics, etc. OMNI edge customer opinions “We feel there is a limit to an expert’s ability to use sound and visual observation to judge when to chan

  16. Slide 16: Enhancement of the Global Manufacturing Structure

    Enhancement of the Global Manufacturing Structure (Industrial Machinery Business） THK India SAMICK-THK Daegu Technopolis Plant (KOREA) New plant New plant Planned operation in Oct. 2020 Planned operation in 2021 ■Target products：LM Guide ■Target products：LM Guide ■Space of land bought：About 205,000㎡

  17. Slide 17: Development of new business areas

    Development of new business areas Supporting labor-saving in the service industry Distribution Shop Restaurant Medical Equipment Seismic Isolation Home Automation Renewable Energy Train / Aircraft Helping the service industry promote labor-saving whose demands have been increasing due to a labor sho

  18. Slide 18: To meet demand for automation and power saving

    To meet demand for automation and power saving Autonomous transport robot Carries drinks inside Takanawa Gateway station building (proof-of-concept) Temperature check robot Product select robot Checks body temperature using thermal camera Expect to be used in Contacts call center and responds if det

  19. Slide 19: Automotive and Transportation Business Initiative

    Automotive and Transportation Business Initiative The launch of new products Expansion of L&S Business for Automobiles Sales activities that fully utilize Backed by the trend of “CASE” mutual sales and production accelerating the development of linear motion products for automobiles between THK RHYT

  20. Slide 20: Financial Forecast for Fiscal 2020

    Ⅲ. Financial Forecast for Fiscal 2020 Copyright THK CO., LTD. 2020. All rights reserved.

  21. Slide 21: Orders Received by Region (Industrial Machinery)

    Orders Received by Region ＜Industrial Machinery Business＞ THK CO., LTD. (Japan) * exclude export % Change, Billions of YEN 50 Order value 47.9 40 (9.7) 30 (35.9) (63.1)(63.3) (56.0) (43.2) (17.9) 8.5 6.5 Order value transferred to 20 42.2 32.5 Automotive & Transportation 10 25.0 17.8 15.5 14.3 14.2

  22. Slide 22: Financial Forecast (Consolidated)

    Financial Forecast (Consolidated) （Millions of Yen） 2020/12 2019/12 FY Revised FY Feb 1H Results Results Aug. Forecast Forecast Revenue 216,000 264,000 103,051 274,599 Y/Y -21.3％ -3.9％ -30.2％ -20.3％ Operating Income 200 11,400 (1,404) 18,277 Y/Y -98.9％ -37.6％ - -65.4％ Income before income taxes (1,4

  23. Slide 23: Financial Forecast (Unconsolidated)

    Financial Forecast (Unconsolidated) （Millions of Yen） 2020/12 2019/12 FY Revised FY Feb 1H Results Results Aug. Forecast Forecast Net Sales 103,300 125,000 51,814 136,189 Y/Y -24.1％ -8.2％ -31.1％ -26.9％ Domestic 71,800 87,500 35,198 92,800 Y/Y -22.6％ -5.7％ -31.5％ -26.9％ Operating Income 1,000 7,400 3

  24. Slide 24: Operating Income (FY2020E) Change Factors

    (Ref.) Operating Income（FY2020E) – Change Factors – Industrial FY2019 Revenue: 177.8 billions of yen FY2020(E) Revenue: 145.2 billions of yen Machinery (IFRS) Operating Income: 22.7 billions of yen (IFRS) Operating Income: 6.9 billions of yen 22.7 Billions of yen (15.8) (1.8) Change in 4.2 ６.9 Varia

  25. Slide 25: Trends in COGS and SG&A

    Trends in COGS and SG&A COGS 78.2% 77.8% COGS ratio 70.9% 73.0% 71.2% Sales-cost ratio increased by 4.8 points Y/Y ・Due to decrease revenue 127,285 123,896 107,750 99,380 Millions 80,137 of Yen 1H 2H 1H 2H 1H 2018/12 2019/12 2020/12 （Japanese GAAP） (IFRS) (IFRS) SG&A 22.5% 17.5% 18.6% Other | Y/Y :

  26. Slide 26: Support Statement: Trends in Orders, Sales and Backlog

    【Support Statement】 － Trends in Orders, Sales and Backlog(Domestic – Unconsolidated) – （millions of yen） 80,000 Orders 70,000 Sales Backlog 60,000 50,000 40,000 30,000 20,000 10,000 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

  27. Slide 27: Support Statement: Trends in Orders Classified by Industry

    【Support Statement】 （millions of yen） –Trends in Orders Classified by Industry (Unconsolidated)– 12,000 Machine Tool General Machinery 10,000 Electronics 8,000 6,000 4,000 2,000 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

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