Slide 1: Financial Results Briefing for Fiscal 2023
FINANCIAL RESULTS BRIEFING FOR FISCAL 2023 February 15th 2024 THK CO.,LTD. Chairman & 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 informa
Slide 2: Contents
Contents Ⅰ. Financial Results for Fiscal 2023 Ⅱ. Major Measures Ⅲ. Financial Forecast for Fiscal 2024 Copyright THK CO., LTD. 2024. All rights reserved.
Slide 3: I. Financial Results for Fiscal 2023
Ⅰ. Financial Results for Fiscal 2023 Copyright THK CO., LTD. 2024. All rights reserved.
Slide 4: Financial Highlights
Financial Highlights ※地域別売上高は Consolidated sales revenue declined 10.6% YoY to 351.9 billion yen 海外売上高ベース While economic activities in each region continue returning to normal (pre-pandemic) levels, the outlook for the global economy remains uncertain, given heightening geopolitical risks in areas i
Slide 5: Trend in Net Sales
Trend in Net Sales 393,687 Asia and other 33,789 351,939 ●Taiwan Down 46.3％ ●Singapore Down 38.8％ Asia and other ●India Down 9.9％ 25,056 318,188 84,046 China 28,624 59,919 China 274,599 ●Machine tools Down 33.2％ ●General machinery Down 29.6％ 22,021 ●Electronics Down 41.1％ 68,662 Europe ●Automotive 6
Slide 6: Operating Income Change Factors (Industrial Machinery)
(Ref.) Operating Income – Change Factors – (Industrial Machinery) (35.4) 51.1 2.3 Billions of yen 3.0 1.9 (0.7) 22.2 Billions of yen Operating Income Effect Other income and Change in Decrease in Foreign Operating Income 2022 due to other expense Variable Fixed Cost Exchange 2023 (Industrial Machine
Slide 7: Operating Income Change Factors (Automotive & Transportation)
(Ref.) Operating Income – Change Factors – (Automotive & Transportation) 1.6 13.5 Billions of yen △166 億円 (16.6) Billions of yen 1.1 4.2 0.3 (0.9) Operating Income Change in Effect Decrease in Foreign Other income and Operating Income 2022 Variable due to Fixed Cost other expense 2023 (Automotive &
Slide 8: Assets, Liabilities and Equity
Assets, Liabilities and Equity Total Assets 556,351 millions of yen Down ¥3,952 million from previous period Cash and Cash in Account |Y/Y : Current liabilities| Y/Y : Down ¥7,348million Down ¥29,519 million Cash Flows from Operating Activities : ¥39,332 million ■Trade and other payables | Y/Y : Cas
Slide 9: II. Major Measures
Ⅱ. Major Measures Copyright THK CO., LTD. 2024. All rights reserved.
Slide 10: THK Management
THK Management Corporate Philosophy Providing innovative products to the world and generating new trends to contribute to the creation of an affluent society Vision Manufacturing and innovative services company Sustainability / ESG Copyright THK CO., LTD. 2024. All rights reserved. 9
Slide 11: Enhancing Corporate Value
Enhancing Corporate Value PBR (price-to-book value ratio) ＝ ROE (return on equity) × PER (price-to-earnings ratio) Improve further through management with awareness of capital costs Management Targets FY2026 Revenue：500.0 billions of yen Operating Income：100.0 billions of yen ROE 17% EPS ¥590 Enhanc
Slide 12: Key Initiatives in Business Lines
Key Initiatives in Business Lines Medium- to long-term markets are growing: FY2024 from adjustments to recovery Management Targets Revenue（Upper row：billions of yen） Revenue：500.0 billions of yen Operating Income（Lower row：billions of yen） Operating Income： 100.0 billions of yen EPS ¥590 ROE17% IFRS
Slide 13: Expanding applications through the Linear Motion Core Technology
Expanding applications through the Linear Motion Core Technology Bring high-precision products to increasingly high-precision semiconductor Existing areas manufacturing equipment New business Helping the service industry promote labor-saving whose demands have been areas increasing due to a labor sh
Slide 14: New Products/Products Under Development
New Products/Products Under Development Among Linear Motion and Rotary Components Contributing to the Cutting Edge of Automation Miniature LM Guide Model AHR for semiconductor assembly bonder Increased semiconductor chip Wheel Guide Model CWG production capacity Utility Slide Model AWG Conveyor rout
Slide 15: Advancing DX for Improved Productivity
Advancing DX for Improved Productivity Fusion with Omni THK (digital tool) to boost customer satisfaction and productivity Streamlines service provision End User Online Service Omni THK Product Support Designer My Page Tools Information Linking with Delivery Date/ EDI Purchaser Shipment/History （ODO
Slide 16: Maximizing Overall Equipment Effectiveness through OMNIedge
Maximizing Overall Equipment Effectiveness (OEE) through OMNIedge Skill Management AI Solution Predictive failure detection AI solution Tool Monitoring AI Solution (Linear motion and rotary components) NEW Raising human efficiency Equipment Efficiency Factors ◎ Management loss Movement loss ◎ Breakd
Slide 17: New solution from OMNIedge - Skill Management AI Solution
New solution from OMNIedge - Skill Management AI Solution - Centralized Management and Visualization of Personnel Skill Data to Dramatically Boost Efficiency of Skill Management Copyright THK CO., LTD. 2024. All rights reserved. 16
Slide 18: Introduction of OMNIedge
Introduction of OMNIedge (examples of companies adopting OMNIedge) Steady introduction to customer operations in a wide range of industries Notes: ・Only some of the companies adopting OMNIedge are listed ・Company names are listed in random order Copyright THK CO., LTD. 2024. All rights reserved. 17
Slide 19: New Products Contributing to the Cutting Edge of Automation
New Products Contributing to the Cutting Edge of Automation Transport robot SIGNAS New type added with towing weight of 1 ton ・Easy setting with proprietary autonomous movement control system ・Suitable for a variety of applications and environments NEW Driving Loading Next-generation linear transpor
Slide 20: Enhancement of the Global Manufacturing Structure
Enhancement of the Global Manufacturing Structure Thoroughgoing cost reductions are being carried out by introducing automation and robotics at each production site Industrial Machinery Business 23 Automotive & Transportation TRA GmbH(DEU) TRA CZECH(CZE) Business 14 TRA MICHIGAN(USA) TRA CANADA(CAN)
Slide 21: Progress on Reorganization of Automotive and Transportation Business
Progress on Reorganization of Automotive and Transportation Business Reorganization of business to FY2023 place it on a profitable footing FY2024 and beyond Achieve profit growth Continuation and strengthening of recovery plan Manufacturing restructuring / Organizational restructuring [Existing prod
Slide 22: EV Prototype LSR-05 Developed by THK
Automotive and Transportation Business Initiative EV Prototype LSR-05 Developed by THK -- Announced at Japan Mobility Show 2023 -- As “CASE” advances in the automotive industry, this prototype embodies our thinking about the way forward for automotive technology Copyright THK CO., LTD. 2024. All rig
Slide 23: About Sustainability Management
About Sustainability Management Basic Sustainability Policy The THK Group aims to both enhance corporate Corporate Providing innovative products to the world and value through its core business and contribute to Philosophy generating new trends to contribute to the creation of an affluent society. t
Slide 24: About Sustainability Management
About Sustainability Management Sustainability Structure and Recent Activities ■Toward concrete materiality initiatives, five working groups have been formed for each theme and have been carrying on discussions ■Indicators and targets corresponding to each materiality item to be announced in March ■
Slide 25: Working to Promote Carbon Neutrality
Working to Promote Carbon Neutrality Medium- and Long-Term Targets for Carbon Neutrality Medium-Term Target By 2030, reduce CO₂ emissions to 50% of 2018 levels Scope: THK Japan and Group companies in Japan 2018 emissions: 106,514 tons Long-Term Target By 2050, achieve net-zero CO₂ emissions. Scope:
Slide 26: Working to Promote Carbon Neutrality (overseas)
Working to Promote Carbon Neutrality (overseas) Solar Power Generation（THK Changzhou Plant) Solar Power Generation（THK LIAONING Plant) Solar Power Generation（THK RHYTHM THAILAND) An inverter function was Compressor exhaust Utilization of Electric Vehicles Electric Forklifts added to the mist heat be
Slide 27: III. Financial Forecast for Fiscal 2024
Ⅲ. Financial Forecast for Fiscal 2024 Copyright THK CO., LTD. 2024. All rights reserved.
Slide 28: Orders Received by Region (Industrial Machinery Business)
Orders Received by Region ＜Industrial Machinery Business＞ * exclude export THK CO., LTD. (Japan) % Change, Billions of YEN 133.5 40 50.4 111.8 77.1 28.9 (4.5) (19.6) 30 (34.2)(43.7) (41.5)(32.7)(15.2) 20 32.2 34.1 34.4 32.6 30.8 27.4 10 25.3 22.6 18.4 18.0 18.5 19.2 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 1
Slide 29: Financial Forecast (Consolidated)
Financial Forecast (Consolidated) （Millions of Yen） 2024/12 2023/12 2022/12 Forecast Results Results Revenue 365,000 351,939 393,687 Y/Y +3.7％ -10.6％ +23.7％ Operating Income 27,000 23,707 34,460 Y/Y +13.9％ -31.2％ +13.8％ Income before income taxes 28,800 25,289 35,596 Y/Y +13.9％ -29.0％ +18.7％ Profit
Slide 30: Website www.thk.com
Website www.thk.com Copyright THK CO., LTD. 2024. All rights reserved.
Slide 31: Operating Income (FY2024E) Change Factors
(Ref.) Operating Income（FY2024E) – Change Factors – Industrial Machinery FY2023 Revenue: 217.5 billions of yen Revenue: 230.0 billions of yen Operating Income: 22.2 billions of yen FY2024(E) Operating Income: 25.0 billions of yen 25.0 22.2 8.2 0.9 Billions of yen Billions of yen (5.1) Change in (1.0
Slide 32: Trends in COGS and SG&A
Trends in COGS and SG&A COGS 78.8% Sales-cost ratio increased by 3.5 points Y/Y 75.4% 76.8% 74.9% COGS ratio 73.3% ・Due to decrease revenue Millions of Yen 288,398 270,308 238,434 207,130 172,567 2019/12 2020/12 2021/12 2022/12 2023/12 SG&A 20.5% SG&A ratio increased by 1.8 points Y/Y 18.0% 16.0% 16
Slide 33: Trends in Orders, Sales and Backlog (Japan Unconsolidated)
【Support Statement】 － Trends in Orders, Sales and Backlog(Japan – Unconsolidated) – （millions of yen） 80,000 Orders Sales 70,000 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 7-9
Slide 34: Trends in Orders Classified by Industry (Unconsolidated)
【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