Sodick Co., Ltd. · TSE:6143
Sodick — Q3 2023 Earnings Presentation
32 slides from Sodick's earnings presentation, Nov 10, 2023
Slide 1: 3Q FY2023/12 Results Briefing
Tokyo Stock Exchange Prime Market 6143 3Q FY2023/12 Results Briefing Sodick Co., Ltd. November 10, 2023
Slide 2: 3Q FY2023/12 Financial Results Summary
3Q FY2023/12 Financial Results Summary
Slide 3: Financial Results Highlights
Financial Results Highlights Sales declined due to lower sales of electrical discharge machines (EDMs) and injection molding machines. Profitability also declined 3Q FY2023 Sales: 49.9 billion yen down 16.4% YoY OP: -1.4 billion yen –% Continued demand for CASE-related products, but adjusting demand
Slide 4: Financial Results Highlights
Financial Results Highlights Net sales decreased by 16% due to a sharp decline in sales of machine tools and industrial machines. Operating loss of approximately 1.4 billion yen owing to a decline in profitability associated with production adjustments at overseas plants, as well as continued co
Slide 5: Details of Changes in Operating Profit
Details of Changes in Operating Profit The impact of lower sales, lower profitability associated with production adjustments at overseas plants, and higher raw material and energy prices led to a significant decrease in gross profit. Total SG&A expenses increased by about 0.9 billion yen from th
Slide 6: Ratio of Operating Profit to Net Sales (Quarterly)
Ratio of Operating Profit to Net Sales (Quarterly) Operating profit margin Sales of electrical discharge machines Net sales decreased due to the spread of Recovery from a fall Machine tool sales (EDMs) was sluggish COVID-19 due to COVID-19 in China fell sharply owing to U.S.–China Operating rates an
Slide 7: Financial Results by Segment
Financial Results by Segment FY2019 FY2020 FY2021 FY2022 FY2023 YoY (million yen) Change 3Q 3Q 3Q 3Q 3Q Machine tool segment 34,498 26,317 37,248 42,564 35,285 -17.1% Industrial machinery 7,242 8,045 6,928 8,115 6,367 -21.5% segment Food machinery segment 3,470 2,223 5,063 4,164 4,573 9.8% Other seg
Slide 8: Financial Results by Segment: Machine Tool
Financial Results by Segment Machine Tool Segment Net sales (Quarterly changes) 16,000 • Continued strong sales for CASE-related products 12,000 11,084 Net sales Aerospace demand in the West is also recovering. • Sales declined in Japan, Greater China and Asia 8,000 due to weak demand for semicond
Slide 9: Financial Results by Segment: Industrial Machinery
Financial Results by Segment Industrial Machinery Segment Net sales (Quarterly changes) 4,000 • The industrial machinery industry as a whole is facing a difficult situation due to customer 3,000 inventory adjustments and investment delays due Net sales to market softening for semiconductors and 1,
Slide 10: Financial Results by Segment: Food Machinery
Financial Results by Segment Food Machinery Segment Net sales (Quarterly changes) 3,000 Demand for noodle-making machine-related 2,125 Net sales equipment in Japan and overseas, as well as 2,000 aseptically-packaged cooked rice production systems for overseas markets, has remained strong. 1,000 0
Slide 11: Financial Results by Segment: Other Segments
Financial Results by Segment Other Segments Net sales (Quarterly changes) 2,000 • Net sales from the mold operations decreased partly due to semiconductor shortages and supply 1,500 chain disruptions. 1,297 Net sales • Demand for ceramics for semiconductor 1,000 manufacturing equipment manufacture
Slide 12: Balance Sheet
Balance Sheet Although non-current assets increased due to expansion of food factories and construction of new sales offices, total assets increased slightly due to a decrease in trade receivables. Net assets increased due to an increase in foreign currency translation, despite a decrease due to
Slide 13: FY2023/12 Full-year Financial Results Projections
FY2023/12 Full-year Financial Results Projections
Slide 14: Changes in JMTBA Orders and Sodick EDM Orders
Changes in Amount of JMTBA Orders and in Number of Sodick EDM Orders JMTBA Machine Tool Orders (value) Sodick EDM Orders (units) (million yen) (units) Record-high monthly orders (2021/3) Increasing demand in China A fall due to the 2008 financial crisis A decrease due to the spread of the COVID-19 A
Slide 15: Changes in Numbers of EDMs Ordered in Quarters by Region
Changes in Numbers of EDMs Ordered in Quarters by Region Demand for auto-related and aerospace-related products North and Orders from auto-related industries remained weak, but those Europe remained strong. South America from medical-related industries were on the recovery trend and those from aeros
Slide 16: Revision to FY2023/12 Full-year Earnings Forecasts
Revision to FY2023/12 Full-year Earnings Forecasts Lowered full-year earnings forecast revised in August owing to expected further decline in sales of machine tools and industrial machinery due to lower demand for semiconductors and electronic components. Operating loss is expected to be 2.1 bil
Slide 17: Revision to FY2023/12 Full-year Earnings Forecasts by Segment
Revision to FY2023/12 Full-year Earnings Forecasts by Segment Machine tools: Sales of EDMs in Greater China fall sharply. The severe situation is expected to continue in the fourth quarter. Industry machinery: Decreased net sales and profits due to weak sales for smartphones and electronic compo
Slide 18: Financial Policy and Shareholder Returns
Financial Policy and Shareholder Returns Financial Policy Index Target 2022 Actual Capital efficiency ROE (5-year average) 8％ or more 7.0％ Financial Net cash Net cash plus 3,381 million yen soundness Equity ratio 50％ or more 58.5％ DOE *１ 2% or more 2.1% Shareholder returns Total return ratio *２ 40
Slide 19: Implementation of Structural Reforms
Implementation of Structural Reforms
Slide 20: Awareness of the Current Situation and Need for Structural Reforms
Awareness of the Current Situation and Need for Structural Reforms Amid rapid and drastic changes in the external environment, such as the U.S.- China trade friction, the COVID-19 pandemic, global inflation, supply chain restructuring, and the rapid depreciation of yen, the Chinese market has shak
Slide 21: Overview of Structural Reform
Overview of Structural Reform Basic policies: ●Break away from dependence on the Chinese market ●Implement “selection and concentration” to improve and enhance profitability across the Group ●Rebuild production and sales systems globally in response to foreign exchange fluctuations and changes in de
Slide 22: Appendix
Appendix 1. Changes in Financial Results 2. Changes in Indexes 3. Changes in Financial Results by Segment 4. Numbers of EDMs Ordered and Sold 5. Ratio of Overseas Sales by Segment 6. Maintenance Service Ratio 7. Outline of Business 8. New products 9. Exhibition Information
Slide 23: Changes in Financial Results
Changes in Financial Results （million yen） 1Q 2Q 3Q 4Q 1H 2H Full Year FY2021/12 YoY YoY YoY YoY YoY YoY YoY Net sales 14,317 109.9% 20,187 147.7% 19,471 138.7% 21,199 122.6% 34,504 129.2% 40,669 129.8% 75,174 129.5% Cost of sales 9,665 107.9% 13,167 141.4% 12,571 130.7% 14,058 118.2% 22,832 125.0%
Slide 24: Changes in Indexes
Changes in Indexes Number of employees (Persons) 17/12 18/06 18/12 19/06 19/12 20/06 20/12 21/06 21/12 22/06 22/12 23/09 separate 701 743 755 801 841 869 886 914 924 987 1,087 1,181 consolidated 3,651 3,714 3,676 3,625 3,579 3,576 3,633 3,670 3,683 3,772 3,746 3,610 ＊Not including employee on loan t
Slide 25: Changes in Financial Results by Segment
Changes in Financial Results by Segment 1Q 2Q 3Q 4Q 1H 2H Full year FY2021/12 YoY YoY YoY YoY YoY YoY YoY Net sales 10,382 126.0% 13,762 156.0% 13,102 141.6% 14,237 121.6% 24,145 141.5% 27,339 130.4% 51,485 135.4% Machine Operating profit 898 454.3% 2,258 303.4% 2,104 287.0% 1,915 156.9% 3,156 335.4
Slide 26: Numbers of EDMs Ordered and Sold
Numbers of EDMs Ordered and Sold EDM Orders (Units) FY2021 FY2022 FY2023 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total North&South 58 70 54 68 250 81 58 56 83 278 70 63 70 203 America Europe 100 108 113 106 427 96 106 58 94 354 70 56 83 209 China 1,007 858 513 425 2,803 578
Slide 27: Ratio of Overseas Sales by Segment
Ratio of Overseas Sales by Segment (million yen) 25,000 North and South Japan Europe Greater China Asia America 20,000 Others 15,000 Food machinery 10,000 Industrial machinery 5,000 Machine tools 0 FY22 2022年 2022年 FY23 2023年 2023年 FY22 2022年 2022年 FY23 2023年 2023年 FY22 2022年 2022年 FY23 2023年 2023年
Slide 28: Maintenance Service Ratio
Maintenance Service Ratio Breakdown of sales of machinery, maintenance services and Quarterly trends in maintenance services consumables and consumables (million （百万円） yen) 3,500 Machine tools Q3 2022 Q3 2023 9,037 3,000 2,500 Maintenance 9,206 services and 9,037 21.2% 9,206 26.1% 2,000 consumables
Slide 29: Outline of Business
Outline of Business Segment Machine tools Industrial machinery Food machinery Horizontal injection molding Noodle-making equipment Die-sinker EDM Wire-cut EDM machine (Noodle production line) Sterile-packed cooked rice production system *a part of whole Small Hole EDM Metal 3D Printer Vertical injec
Slide 30: New Products
New Products Machine tool Industrial machinery Food machinery AL100G VR G series CIP* Automatic Noodle Large Die-sinker EDM Boiling Machine Renovation of discharge Hydraulic and electric hybrid High efficiency, cleanliness, and control technology drive system simple maintenance Use artificial intell
Slide 31: Exhibition Information
Exhibition Information MTA Vietnam 2023 EMO Hannover 2023 Exhibited at MTA Vietnam 2023, a machine tool Exhibited at EMO Hannover 2023, a machine tool exhibition held in Ho Chi Minh City, Vietnam. We exhibition held in Hannover, Germany. We exhibited exhibited AL40G Die-sinker EDM and VN600Q Wire- t
Slide 32: Disclaimer
Disclaimer 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 Instr