Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2021 Earnings Presentation
33 slides from Sumitomo Heavy Industries's earnings presentation, May 10, 2022
Slide 1: Financial Summary for FY2021, Projections for FY2022 and Progress of Medium-Term Management Plan 2023
Financial Summary for FY2021 Projections for FY2022 and Progress of “Medium-Term Management Plan 2023” 2022/5/10 President Shinji Shimomura Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 2: INDEX
2022/5/10 INDEX 01 Financial Summary for FY2021 02 Projections for FY2022 03 Progress of “Medium-Term Management Plan 2023” Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 2
Slide 3: Financial Summary for FY2021
2022/5/10 01 Financial Summary for FY2021 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 3
Slide 4: Financial Summary for FY2021
2022/5/10 01 Financial Summary for FY2021 <Comparison with the previous fiscal year> • Orders: Global demand for machinery was in an upward trend and orders increased in all segments and record high. • Sales: Sales increased in all segments for the same reason as for orders and record high. • Operat
Slide 5: Earnings Results by Segment
2022/5/10 01 Earnings Results by Segment (1) Orders: Significantly increased because of strong Japanese markets for semiconductor-related products and hydraulic excavators and an increase in demand in the US as well as a rise in demand for small-to-medium sized gear reducers, precision gears for rob
Slide 6: Analysis of Changes in Operating Profit
2022/5/10 01 Analysis of Changes in Operating Profit Unit: JPY billion Effect of sales Effect of Selling & Other increases exchange rates administrative expenses <Effect of sales increases by segment> <Selling & administrative expenses> Unit: JPY billion Mechatronics 6.0 Sales transportation expense
Slide 7: Consolidated Balance Sheet (Assets)
2022/5/10 01 Consolidated Balance Sheet (Assets) Unit: JPY billion March 2021 March 2022 Change ■Total assets: Increased as a result of increases in sales and capital Current Assets 613.6 648.1 34.5 investment. Cash and deposits 99.5 88.8 (10.7) ■Notes and accounts receivable: Notes and accounts Inc
Slide 8: Consolidated Balance Sheet (Liabilities and Net Assets)
2022/5/10 01 Consolidated Balance Sheet (Liabilities and Net Assets) March 2021 March 2022 Change Unit: JPY billion Liabilities 525.8 528.1 2.3 ■Notes and accounts payable – trade: Notes and accounts payable Increased due to increased orders in all - trade 160.3 172.6 12.4 segments excluding Energy
Slide 9: Consolidated Cash Flows Statement
2022/5/10 01 Consolidated Cash Flows Statement Unit: JPY billion ■Cash flows from operating activities: Item FY2020 FY2021 Change Positive as a result of increased working capital Operating Activities 64.1 61.7 (2.5) being offset by increased profit. Decreased by only JPY2.5 billion from the previou
Slide 10: Projections for FY2022
2022/5/10 02 Projections for FY2022 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 10
Slide 11: Change in Fiscal Year End (Financial Year End)
2022/5/10 02 Change in Fiscal Year End (Financial Year End) [Projections for FY2022] Starting from this fiscal year (ending December 31, 2022), the financial year end is changed to December 31. This fiscal year (FY2022), which is a transition period, consists of nine months with regard to Sumitomo H
Slide 12: Performance Forecast for FY2022
2022/5/10 02 Performance Forecast for FY2022 ■Capital investment and demand for machinery are assumed to steady in FY2022. ■Cost-increasing factors that can be ascertained as of now have been reflected in earnings forecasts. ■Disruptions in supply chains are not temporary and may be worsening. ■The
Slide 13: Performance Forecast by Segment for FY2022
2022/5/10 02 Performance Forecast by Segment for FY2022 Orders Net sales Operating Profit Forecast [Reference] [Reference] [Reference] Forecast Forecast Actual FY2021 FY2022 Forecast FY2022 Actual Forecast Actual Forecast FY2022 FY2022 /Operating profit (9 months) (12 months) FY2021 FY2022 FY2021 FY
Slide 14: Mechatronics
2022/5/10 02 Mechatronics FY2021 ： Orders, sales and operating profit all increased because of a rise in demand for small-to-medium sized gear reducers, precision gears for robot articulations and motors in Japan, Europe and the US. FY2022*： We assume that the market condition will be strong. Becaus
Slide 15: Mechatronics
2022/5/10 02 Mechatronics Orders Net sales Unit: JPY billion Operating profit (left scale) Profit ratio (right scale) [Reference] Gear reducer business : Sales contribution ratio by model (approximate numbers) For use in Gear motor Gear box precision Electric Service Total (middle size) (large size)
Slide 16: Industrial Machinery
2022/5/10 02 Industrial Machinery <Plastics machinery> FY2021：Orders, sales and operating profit increased due to increased demand in China (for electrical and electronics-related products) and in Europe. FY2022：Orders will decrease due to reduction in projects involving many units (which were notic
Slide 17: Industrial Machinery
2022/5/10 02 Industrial Machinery Orders Net sales プラスチック加工機械 Plastics machinery Unit: JPY billion その他 Others Operating profit (left scale) Profit ratio (right scale) <Reference> - Business performance for semiconductor production equipment - Sales mix of injection molding machines by segment (appro
Slide 18: Logistics & Construction
2022/5/10 02 Logistics & Construction <Hydraulic excavators> FY2021：Demand was robust in Japan and demand from North America increased. As a result, orders, sales and operating profit all increased. FY2022：Orders will decrease but sales and operating profit will increase because of a backlog of orde
Slide 19: Logistics & Construction
2022/5/10 02 Logistics & Construction Orders Net sales Unit: JPY billion 油圧ショベル Hydraulic excavators その他 Others Operating profit (left scale) Profit ratio (right scale) <Reference> - Industrial cranes: order mix by segment (approximate numbers) Electric Ship- - Hydraulic excavators: demand by region
Slide 20: Energy & Lifelines
2022/5/10 02 Energy & Lifelines FY2021 ：Orders in the energy plant business decreased because orders for large-scale projects for biomass fueled power generation plants in Japan were reduced as compared to the previous fiscal year. Both sales and operating profit increased due to a backlog of orders
Slide 21: Energy & Lifelines
2022/5/10 02 Energy & Lifelines Orders Net sales Unit: JPY billion Operating profit (left scale) Profit ratio (right scale) <Reference> - Energy plant business: main projects for which orders were received in FY2021 Planned timing of Customer Construction site Boiler type* operation start Sakaide Bi
Slide 22: Ref. Capital Investment, Depreciation Cost, R&D Cost, Personnel, Forex Sensitivity
2022/5/10 Ref. Capital Investment, Depreciation Cost, Research & Development Cost, Personnel, Forex Sensitivity Capital investment* Depreciation & amortization 3-4Q Research & development* 1-2Q *Actuals are based on cash flow. *Actuals are based on P/L. Forecast is based on budget. Forecast is based
Slide 23: Ref. Overseas Sales by Regional Segment
2022/5/10 Ref. Overseas Sales by Regional Segment FY2021 Full year (Apr. 2021 to Mar. 2022） <Exchange rate: JPY112 per US dollar> Asia (Excluding Unit: JPY billion North America Europe China) China Others Overseas total Japan Total sales Mechatronics 27.6 35.0 14.5 15.9 9.7 102.7 58.3 161.0 (plastic
Slide 24: Progress of Medium-Term Management Plan 2023
2022/5/10 03 Progress of “Medium-Term Management Plan 2023” Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 24
Slide 25: Medium-Term Management Plan 2023: Changes in the Business Environment
2022/5/10 03 “Medium-Term Management Plan 2023”: Changes in the Business Environment Factoring-in of external environments Impact on business Business issue Response Factored in when MTMP 23 was formulated - Rapid progress of ESG action Increase in Revise prices to - China becomes more influential i
Slide 26: Medium-Term Management Plan 2023: Financial Targets
2022/5/10 03 “Medium-Term Management Plan 2023”: Financial Targets ◼ Financial targets ■Orders: [Reference] The initial plan is expected to be exceeded Forecast FY2023 FY2023 Forecast because order intake is strong Actual FY2020 Actual FY2021 FY2022 targets* targets* (9 months) FY2022 (as of May 202
Slide 27: Medium-Term Management Plan 2023: Changes in Financial Figures (Consolidated)
2022/5/10 03 “Medium-Term Management Plan 2023”: Changes in Financial Figures (Consolidated) ◼ Changes in orders/sales/operating profit Unit: JPY billion ◼ Changes in ROIC Orders Net sales Operating profit (Reference) Changes in ROE メカトロニクス Mechatronics インダストリアル Industrial Machineryマシナリー ロジスティックス＆コン
Slide 28: Medium-Term Management Plan 2023: Implementation Status of the Basic Policy
2022/5/10 03 “Medium-Term Management Plan 2023”: Implementation Status of the Basic Policy Basic policy Specific developments ■Actively made capital investments in growth areas and conducted research & development activities 1. Develop a robust entity ■Expanded the after-sales service business ■Ensu
Slide 29: Our Semiconductor Production-related Businesses
2022/5/10 03 “Medium-Term Management Plan 2023”: 2…① Our Semiconductor Production-related Businesses Semiconductor production processes* (front-end) Products for semiconductor production that we possess and *Classification of processes is based on materials prepared by the Semiconductor their key te
Slide 30: Key Development Areas
2022/5/10 03 “Medium-Term Management Plan 2023”: 4…② Key Development Areas Key areas Development targets Actual results for FY2021 ■New anaerobic treatment technology was used to significantly improve the speed at Develop environmental conservation technologies which fats and oils are broken down. W
Slide 31: Promoting Sustainability
2022/5/10 03 “Medium-Term Management Plan 2023”: 5…③ Promoting Sustainability Results of FY2021 Issue ・Established a basic sustainability policy - Promote CSV to improve social value ・Obtained a Bronze Medal from Eco Vadis* - Strengthen measures to respond to important issues of Overall ・Increased n
Slide 32: Measures to Realize a Decarbonized Society
2022/5/10 03 “Medium-Term Management Plan 2023”: 5…③ Measures to Realize a Decarbonized Society Accelerating measures to address climate change - Reducing CO2 emissions during production of our products (50% reduction by 2030 from the 2019 level) - Reducing CO2 emissions during use of our products (
Slide 33: Forward-looking statements
2022/5/10 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 subjec
Sumitomo Heavy Industries — FY2021 Earnings Presentation on 6ix