Sumitomo Heavy Industries, Ltd. · TSE:6302

Sumitomo Heavy Industries — FY2023 Earnings Presentation

53 slides from Sumitomo Heavy Industries's earnings presentation, Feb 14, 2024

Slide 1: Financial Summary for FY2023, Performance Forecast for FY2024 and Medium-Term Management Plan 2026
Financial Summary for FY2023, Performance Forecast for FY2024 and “Medium-Term Management Plan 2026” 2024/2/14 President Shinji Shimomura Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 2: INDEX
2024/2/14 INDEX 01 Financial Summary for FY2023 Performance Forecast for FY2024 02 “Medium-Term Management Plan 2026” (MTMP26) Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 2
Slide 3: Financial Summary for FY2023 / Performance Forecast for FY2024
2024/2/14 01 Financial Summary for FY2023 Performance Forecast for FY2024 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 3
Slide 4: Change in Fiscal Year End of FY2022
2024/2/14 01 Change in Fiscal Year End of FY 2022 (Financial Year End) 2023 January to March April to June July to September October to December 1Q 2Q 3Q 4Q Domestic 1H of FY2023 2H of FY2023 FY2023 Domestic 12 months 1Q 2Q 3Q 4Q Overseas 1H of FY2023 2H of FY2023 FY2023 Overseas 12 months 2022 (Bef
Slide 5: Financial Summary for FY2023
2024/2/14 01 Financial Summary for FY2023 Actual Orders : JPY1,008.7 billion / 1,164.8 billion (156.2) billion FY2023 /Same period of Net sales : JPY1,081.5 billion / 1,018.3billion 63.3 billion previous fiscal year (after adjustment), (change) Operating profit : JPY74.4 billion / 60.0 billion 14.4
Slide 6: Financial Summary for FY2023
2024/2/14 01 Financial Summary for FY2023 FY2023 Change FY2022 (12 months) Year-on-year Comparison with Latest forecast Actual latest forecast Actual (August 2023) change Unit: JPY billion (August 2023) Orders 1,164.8 1,055.0 1,008.7 (156.2) (46.3) Net sales 1,018.3 1,075.0 1,081.5 63.3 6.5 Operatin
Slide 7: Performance by Segment for FY2023
2024/2/14 01 Performance by Segment for FY2023 Orders Net sales Operating profit FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 Actual Actual Change Change Change Actual Actual Actual Actual /Operating profit ratio /Operating profit ratio Unit: JPY billion (%) (%) Mechatronics 220.6 197.8 (22.8) 197.9 22
Slide 8: Analysis of Changes in Operating Profit for FY2023
2024/2/14 01 Analysis of Changes in Operating Profit for FY2023 Unit: JPY billion FY2022 Effect of sales Effect of Selling & Others FY2023 increases/ decreases exchange rates administrative expenses <Effect of changes in sales by segment> Unit: JPY billion <Selling & administrative expenses> - Costs
Slide 9: Consolidated Balance Sheet
2024/2/14 01 Consolidated Balance Sheet ■ Inventory assets: Increased as a result of expanding ■ Net assets : Shareholders’ equity (retained earnings) increased by JPY20.0 billion. sales scale. Of accumulated other comprehensive income, foreign currency translation adjustments increased by JPY21.6 b
Slide 10: Consolidated Cash Flows Statement
2024/2/14 01 Consolidated Cash Flows Statement Unit: JPY billion Item FY2023 ■Cash flows from operating activities: Operating Activities 65.4 Inventories increased although notes and accounts Profit before income taxes 51.4 receivable decreased. Depreciation & amortization 36.4 Working capital ■Cash
Slide 11: Performance Forecast for FY2024
2024/2/14 01 Performance Forecast for FY2024 Orders : JPY1,120.0 billion Forecast FY2024 Net sales: JPY1,110.0 billion Operating profit: JPY70.0 billion / Current profit: JPY41.0 billion - Orders :Will increase due to a higher number of energy-related projects, customer completion of inventory adjus
Slide 12: Performance Forecast for FY2024
2024/2/14 01 Performance Forecast for FY2024 Actual FY2023 Forecast FY2024 Year-on-year Unit: JPY billion (2023.1-2023.12) (2024.1-2024.12) change Orders 1,008.7 1,120.0 111.3 Net sales 1,081.5 1,110.0 28.5 Operating profit 74.4 70.0 (4.4) Operating profit ratio 6.9% 6.3% - Ordinary profit 70.2 66.0
Slide 13: Analysis of Changes in Operating Profit for FY2023/2024
2024/2/14 01 Analysis of Changes in Operating Profit for FY2023/2024 Unit: JPY billion FY2023 Effect of sales Effect of Selling & Others FY2024 increases/ decreases exchange rates administrative expenses <Selling & administrative expenses> <Effect of sales increases by segment> Unit: JPY billion Inc
Slide 14: Performance Forecast by Segment for FY2024
2024/2/14 01 Performance Forecast by Segment for FY2024 Orders Net sales Operating profit Actual Forecast Actual Forecast Actual Forecast FY2023 FY2024 FY2023 FY2024 Change FY2023 FY2024 Change Change /Operating profit /Operating profit Unit: JPY billion ratio (%) ratio (%) Mechatronics 197.8 221.0
Slide 16: Medium-Term Management Plan 2023 Earnings Results/Investments; Targets and Actual Results
2024/2/14 02 “Medium-Term Management Plan 2023” Earnings Results/Investments; Targets and Actual Results Targets of “Medium-Term FY2021 FY2022 FY2023 Management Plan 2026” (Revised in May 2022) Actual Actual (12 months) Actual Orders JPY1,070.0 billion JPY1,075.3 billion JPY1,164.8 billion JPY1,008.
Slide 17: Medium-Term Management Plan 2023 Summary and Future Issues
2024/2/14 02 “Medium-Term Management Plan 2023” Summary and Future Issues Summary of “Medium-Term Management Plan 2023” Issues to be addressed to fulfill “Medium-Term Management Plan 2026” ◼ The topline growth target was achieved and the semiconductor- ✓ Strengthen profitability by reinforcing exist
Slide 18: Our Ideal State in 2030
2024/2/14 02 Our Ideal State in 2030 Enhance society and those within it with compassion through our ownership Purpose and vision Ideal state in 2030 A company that contributes to an affluent society through core technologies and realizes CSV Material issues of Financial Operating profit: JPY130.0 b
Slide 19: Basic Policy and Key Framework of Medium-Term Management Plan 2026
2024/2/14 02 Basic Policy and Key Framework of “Medium-Term Management Plan 2026” Increase corporate value in a sustainable manner by solving social issues through products and services Concept of Build a business portfolio to solve social issues Lay groundwork for Bring the ideal state long-term Re
Slide 20: Understanding of the External Environment and Management Challenges
2024/2/14 02 “Medium-Term Management Plan 2026” Understanding of the External Environment and Management Challenges An era marked by discontinuity and uncertainty, wherein existing growth strategies and business assumptions no longer apply ◼ Softening of the global economic growth rate and inflation
Slide 21: MTMP26 Earnings Results/Investments; Forecasts and Plans
2024/2/14 02 “Medium-Term Management Plan 2026” Earnings Results/Investments; Forecasts and Plans “Medium-Term Management Plan Forecast “Medium-Term Management Plan 2026” Plans 2023” Actual FY2024 (targets for FY2026) Orders JPY1,008.7 billion JPY1,120.0 billion JPY1,280.0 billion Earnings results N
Slide 22: MTMP26 Forecasts and Plans by Segment
2024/2/14 02 “Medium-Term Management Plan 2026” Forecasts and Plans by Segment Targets of “Medium-Term Actual FY2023 Forecast FY2024 Management Plan 2026” Plans Operating Operating Operating Orders Net sales ROIC Orders Net sales ROIC Orders Net sales ROIC (Unit: JPY billion) profit profit profit Me
Slide 23: Corporate Strategy: Promoting Business Portfolio Reformation
2024/2/14 02 Corporate Strategy: Promoting Business Portfolio Reformation High Businesses to be developed that may play a central role in the next generation Active investment targets Businesses that drive growth Environment/energy Robotics/automation Semiconductors Renewable energy- Precision contr
Slide 24: Businesses Driving Growth (Strategies for the Semiconductor Field)
2024/2/14 02 Corporate Strategy : Businesses Driving Growth (Strategies for the Semiconductor Field) JPY100 million Business plan Net sales 1. Promote the development of next-generation models according to market expansion and changes (power semiconductors, SiC) issues Major 2. Strengthen global pre
Slide 25: Restructuring of Shipbuilding Business
2024/2/14 02 Corporate Strategy : Businesses Whose Strategies Need to Be Rebuilt (Restructuring of Shipbuilding Business) Withdrawing from New Shipbuilding Business: ⚫Beginning in FY2024, we will no longer accept new orders for the construction of general commercial vessels. The business will be con
Slide 26: Improvement Measures to Increase Capital Efficiency
2024/2/14 02 Corporate Strategy : Assessment of Current Situation and Improvement Measures to Increase Capital Efficiency Assessment of current situation Improvement measures − Achievement of topline growth Key investment areas − Stacking up of balance of orders received due ✓ Increase synergy withi
Slide 27: Capital Policy (Cash Flow Allocation)
2024/2/14 02 Corporate Strategy: Capital Policy (Cash Flow Allocation) - Strengthen cash flow generation by promoting ROIC improvement measures. Allocate cash to investments and shareholders by utilizing interest-bearing debts as well. - Our basic policy for shareholder returns is to attain a DOE of
Slide 28: Strengthening the Business Base (Sustainability)
2024/2/14 02 Corporate Strategy: Strengthening the Business Base (Sustainability) “Medium-Term By strengthening measures to achieve SDGs and the Group’s goal of achieving carbon Management Plan 2026” neutrality by 2050, as well as transforming risks associated with changes in the social Basic Sustai
Slide 29: Strengthening the Business Base (Human Capital)
2024/2/14 02 Corporate Strategy: Strengthening the Business Base (Human Capital) Human capital management Key Issues for “Medium-Term Management Plan 2026” Recognizing that “Human resources are our greatest asset and the sustainable growth of a business is rooted in the growth and ➢ Employment and r
Slide 30: Segment Strategy: Roles and Direction by Segment
2024/2/14 02 Segment Strategy: Roles and Direction by Segment Segment Role/Positioning Direction to pursue Key investment area - Active investment in the electric equipment control business - Robotics/automation fields Mechatronics - Growth in the semiconductor business - Semiconductor field - Boost
Slide 31: Segment Strategy: Mechatronics Segment
2024/2/14 02 Segment Strategy: Mechatronics Segment Ideal state Help society and customers solve problems through mechatronic innovation and in 2030 drive solutions Business plan Strategic direction Net sales 10% Operating profit (i) Growth in key investment areas (JPY billion) 10.0% (JPY billion) R
Slide 32: Mechatronics Segment (Robotics, Automation)
2024/2/14 02 Segment Strategy: Mechatronics Segment (Robotics, Automation) Market growth forecasts Major investments aimed at fostering growth in electric control and robotics fields (JPY billion) AGV・AMR 協働ロボット Collaborative robots Enhancing UK-based Invertek’s production capacity: Sales expanded t
Slide 33: Segment Strategy: Industrial Machinery Segment
2024/2/14 02 Segment Strategy: Industrial Machinery Segment Ideal state Highly profitable business entity that uses advanced technologies to respond to the in 2030 global growth market and features an evolving portfolio 事業計画plan Business Strategic direction Operating profit Net sales 12% 12.0% 11.5%
Slide 34: Industrial Machinery Segment (Advanced Medical Devices)
2024/2/14 02 Segment Strategy: Industrial Machinery Segment (Advanced Medical Devices) Market growth forecasts Major investments aimed at fostering growth in advanced medical devices Medicine/semiconductors New clean shop The aging of the population, the development of medical infrastructure in Stre
Slide 35: Segment Strategy: Logistics & Construction Segment
2024/2/14 02 Segment Strategy: Logistics & Construction Segment Ideal state Business group leveraging technological innovation to construct social infrastructure in 2030 using people- and environmentally friendly logistics and construction machinery Business plan Strategic direction Net sales (i) Gr
Slide 36: Logistics & Construction Segment (Automation)
2024/2/14 02 Segment Strategy: Logistics & Construction Segment (Automation) Major development issue Model Development background and direction ◼There will be a growing demand that requires construction machinery businesses to solve social issues, such as carbon neutrality and energy conservation. ◼
Slide 37: Segment Strategy: Energy & Lifeline Segment
2024/2/14 02 Segment Strategy: Energy & Lifeline Segment Ideal state Solution provider in the decarbonized energy and resource recycling fields, built on the in 2030 foundations of (1) carbon neutrality business (2) renewable energy business Business plan Strategic direction Net (JPY billion) Net sa
Slide 38: Energy & Lifeline Segment (Environment/Energy)
2024/2/14 02 Segment Strategy: Energy & Lifeline Segment (Environment/Energy) Major strategic issues Direction of business development Investment item • Demonstrate green CO2 recovery technology from biomass power generation facilities CCU and develop CO2 utilization technology (1) Carbon neutrality
Slide 40: Ref. Mechatronics
2024/2/14 Ref. Mechatronics FY2023: Orders decreased because demand for small-to-medium-sized gear reducers and motors was sluggish due to inventory adjustment by customers in the US and Europe and a slowdown in the Chinese market. Sales and operating profit increased because of a backlog of orders.
Slide 41: Ref. Mechatronics
2024/2/14 Ref. Mechatronics Orders Net sales Operating profit (left scale) Profit ratio (right scale) Unit: JPY billion <Reference> Gear reducer business : Sales contribution ratio by model (approximate numbers) For use in Gear motor Gear box Electric precision Service Total (middle size) (large siz
Slide 42: Ref. Industrial Machinery
2024/2/14 Ref. Industrial Machinery <Plastics machinery> FY2023 :Orders, sales and operating profit all decreased due to slowdown in demand for electric and electronics-related products in China and sluggish investment in Japan and Europe. FY2024 :Orders will increase mainly due to the recovery of t
Slide 43: Ref. Industrial Machinery
2024/2/14 Ref. Industrial Machinery Orders Net sales Operating profit (left scale) Profit ratio (right scale) Unit: JPY billion <Reference> - Sales mix of injection molding machines by segment (approximate numbers) - Business performance for semiconductor production equipment (ion implanters) (appro
Slide 44: Ref. Logistics & Construction
2024/2/14 Ref. Logistics & Construction <Hydraulic excavators> FY2023:Orders decreased partly because there was a decline in response to a significant number of advance orders in the US during the previous fiscal year. Sales increased following the successful resolution of production constraints in
Slide 45: Ref. Logistics & Construction
2024/2/14 Ref. Logistics & Construction Orders Net sales Operating profit (left scale) Profit ratio (right scale) Unit: JPY billion <Reference> - Industrial cranes: order mix by segment (approximate numbers) Electricity Steel Shipbuilding Ports Others Total - Hydraulic excavators: demand by region/c
Slide 46: Ref. Energy & Lifeline
2024/2/14 Ref. Energy & Lifeline FY2023:For the energy plant business, orders and sales decreased due to the postponement of large-scale projects for biomass-fueled power generation plants in Japan. Operating profit was affected by a decline in sales but increased as the profitability deterioration
Slide 47: Ref. Energy & Lifeline
2024/2/14 Ref. Energy & Lifeline Orders Net sales Operating profit (left scale) Profit ratio (right scale) Unit: JPY billion Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 47
Slide 48: Ref. Our ROIC Management
2024/2/14 Ref. Our ROIC Management - In 1999, we adopted “return on invested capital (ROIC) as a management indicator. - The foundation for our portfolio management is to improve corporate value by achieving profitability that continuously surpasses capital costs. - We have achieved topline growth b
Slide 49: Ref. Changes in Financial Values (Consolidated)
2024/2/14 Ref. Changes in Financial Values (Consolidated) ◼ Changes in Orders/Sales/Operating Profit Unit: JPY billion ◼ Changes in ROIC Orders Net sales Operating profit (Ref.) Changes in ROE Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 49
Slide 50: Ref. Segment Breakdown and Semiconductor-Related Sales
2024/2/14 Segment Breakdown (Plastics Machinery and Hydraulic Excavators) Ref. Sales of the Semiconductor-Related Product Business Unit: JPY billion Plastics machinery Hydraulic excavators Orders Net sales Orders Net sales Total sales from semiconductor related businesses (approximate numbers) Unit:
Slide 51: Ref. Capital Investment, Depreciation, R&D, Personnel, Forex Sensitivity
2024/2/14 Ref. Capital Investment, Depreciation Cost, Research & Development Cost, Personnel, Forex Sensitivity Unit: JPY billion Capital investment* *Actuals are based on cash flow. Depreciation & amortization Research & *Actuals are based on 3-4Q Forecast is based on budget. development cost* P/L.
Slide 52: Ref. Sales by Regional Segment
2024/2/14 Ref. Sales by Regional Segment Actual FY2023（2023.1-2023.12） <Exchange rate: JPY139 per US dollar> North America Europe Asia China Others Overseas total Japan Total sales Unit: JPY billion (Excluding China) Mechatronics 44.2 52.1 21.3 15.8 18.4 151.8 68.3 220.0 (plastics machinery) 11.2 27
Slide 53: All forward-looking statements regarding the company’s future performance are based on information currently available
2024/2/14 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 — FY2023 Earnings Presentation on 6ix

Sumitomo Heavy Industries — FY2023 Earnings Presentation

Slide 1: Financial Summary for FY2023, Performance Forecast for FY2024 and Medium-Term Management Plan 2026

Slide 2: INDEX

Slide 3: Financial Summary for FY2023 / Performance Forecast for FY2024

Slide 4: Change in Fiscal Year End of FY2022

Slide 5: Financial Summary for FY2023

Slide 6: Financial Summary for FY2023

Slide 7: Performance by Segment for FY2023

Slide 8: Analysis of Changes in Operating Profit for FY2023

Slide 9: Consolidated Balance Sheet

Slide 10: Consolidated Cash Flows Statement

Slide 11: Performance Forecast for FY2024

Slide 12: Performance Forecast for FY2024

Slide 13: Analysis of Changes in Operating Profit for FY2023/2024

Slide 14: Performance Forecast by Segment for FY2024

Slide 15: Medium-Term Management Plan 2026

Slide 16: Medium-Term Management Plan 2023 Earnings Results/Investments; Targets and Actual Results

Slide 17: Medium-Term Management Plan 2023 Summary and Future Issues

Slide 18: Our Ideal State in 2030

Slide 19: Basic Policy and Key Framework of Medium-Term Management Plan 2026

Slide 20: Understanding of the External Environment and Management Challenges

Slide 21: MTMP26 Earnings Results/Investments; Forecasts and Plans

Slide 22: MTMP26 Forecasts and Plans by Segment

Slide 23: Corporate Strategy: Promoting Business Portfolio Reformation

Slide 24: Businesses Driving Growth (Strategies for the Semiconductor Field)

Slide 25: Restructuring of Shipbuilding Business

Slide 26: Improvement Measures to Increase Capital Efficiency

Slide 27: Capital Policy (Cash Flow Allocation)

Slide 28: Strengthening the Business Base (Sustainability)

Slide 29: Strengthening the Business Base (Human Capital)

Slide 30: Segment Strategy: Roles and Direction by Segment

Slide 31: Segment Strategy: Mechatronics Segment

Slide 32: Mechatronics Segment (Robotics, Automation)

Slide 33: Segment Strategy: Industrial Machinery Segment

Slide 34: Industrial Machinery Segment (Advanced Medical Devices)

Slide 35: Segment Strategy: Logistics & Construction Segment

Slide 36: Logistics & Construction Segment (Automation)

Slide 37: Segment Strategy: Energy & Lifeline Segment

Slide 38: Energy & Lifeline Segment (Environment/Energy)

Slide 39: Reference Materials

Slide 40: Ref. Mechatronics

Slide 41: Ref. Mechatronics

Slide 42: Ref. Industrial Machinery

Slide 43: Ref. Industrial Machinery

Slide 44: Ref. Logistics & Construction

Slide 45: Ref. Logistics & Construction

Slide 46: Ref. Energy & Lifeline

Slide 47: Ref. Energy & Lifeline

Slide 48: Ref. Our ROIC Management

Slide 49: Ref. Changes in Financial Values (Consolidated)

Slide 50: Ref. Segment Breakdown and Semiconductor-Related Sales

Slide 51: Ref. Capital Investment, Depreciation, R&D, Personnel, Forex Sensitivity

Slide 52: Ref. Sales by Regional Segment

Slide 53: All forward-looking statements regarding the company’s future performance are based on information currently available