Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2014 Earnings Presentation
25 slides from Sumitomo Heavy Industries's earnings presentation, May 11, 2015
Slide 1: Financial Summary for FY2014 and Projections for FY2015
1 Financial Summary for FY2014 and Projections for FY2015 President and CEO Shunsuke Betsukawa May 11, 2015
Slide 2: Management Policies FY2015
2 Management Policies FY2015 Achieve the targets set forth in the “Medium-Term Management Plan 2016” one year in advance and aim to make a further leap forward before the next medium-term management plan. Continue steady management ~ Operate with a quality-first mentality. Achieve sales target
Slide 3: Financial Summary for FY2014
3 Financial Summary for FY2014 Key points Unit: JPY billion (1) Orders ・All-time high recorded. 2013 2014 Change ・All segments showed growth over prior year. (2) Net sales Orders 658.2 740.8 82.6 ・All-time high recorded. ・Industrial Machinery segment posted Net sales 615.3 667.1 51.8 a decrease. ・
Slide 4: Operating Income by Segment
4 Operating Income by Segment Unit: JPY billion Comparisons with previous fiscal year 2013 2014 Change <Machinery Components> Increase in income due to strong sales in Machinery the Japanese and North American markets components 6.1 6.6 0.5 <Precision Machinery> Significant increase in income driv
Slide 5: Change in Operating Income (FY2013 to FY2014)
5 Change in Operating Income (FY2013 to FY2014) Unit: JPY billion Impact of Change Others increased in depreciation +2.0 sales method 46.0 Impact of +5.0 +2.7 currency exchange rate fluctuations Sales +4.4 administrative costs, etc. 34.3 (2.5) 2013 2014 May 11, 2015
Slide 6: Consolidated Balance Sheet
6 Consolidated Balance Sheet Net interest-bearing debts turned to negative figure. Increase in working capital related items due to growth in orders and sales. Unit: JPY billion March March March March Change Change 2014 2015 2014 2015 Current assets 435.0 492.0 57.0 Liabilities 393.1 420.9 27.8
Slide 7: Consolidated Cash Flow Statement
7 Consolidated Cash Flow Statement Unit: JPY billion Category FY2013 FY2014 Change Operating activities 63.7 62.1 (1.5) Income before income taxes and minority interests 31.3 38.7 7.4 Depreciation 18.6 16.3 (2.3) Working capital 18.6 11.7 (6.9) Others (income taxes etc.) (4.8) (4.5) 0.3 Investing ac
Slide 8: Performance Forecast for FY2015
8 Performance Forecast for FY2015 Unit: JPY billion FY2014 was a record year for orders. Aim to achieve a figure greater than JPY700 billion in FY2015. Sales and profit expected to increase in FY2015. Aim to achieve record figures greater than JPY700 billion for sales. FY2014 dividend set at J
Slide 9: Machinery Components
9 Machinery Components Orders, Net Sales FY2014: Orders and sales increased as positive conditions in the domestic market continued and the North American market also performed well. Orders and sales figures were at record highs. Demands for large-scale gearboxes for natural resource- related applic
Slide 10: Precision Machinery
10 Precision Machinery Orders, Net Sales <Plastic machinery> FY2014: Orders and sales increased due to strong demand from the Asian IT sector, and solid performance of the European markets. FY2015: Demand from the Asian IT sector will remain strong for the time being but a slowdown is anticipated. T
Slide 11: Construction Machinery
11 Construction Machinery Orders, Net Sales <Hydraulic excavators> FY2014: Although domestic demand declined, it has been propped up by demand due to emissions regulations. Sales increased in the North American and European markets after completing a cycle of inventory adjustments. Demand continued
Slide 12: Industrial Machinery
12 Industrial Machinery Orders, Net Sales FY2014: Orders increased for industrial cranes as investment in the domestic shipbuilding sector recovered. Orders increased for turbines and pumps as demand from the sugar production industry in Thailand increased due to political stability. There was posit
Slide 13: Ships
13 Ships Orders, Net Sales FY2014: Gradual recovery seen in the medium-scale tanker market. Orders received for nine Aframax tankers (an increase of four vessels from the previous fiscal year). At the end of FY2014, the balance of outstanding orders was 12 vessels, ensuring production until FY2017.
Slide 14: Environmental Facilities and Plants
14 Environmental Facilities and Plants Orders, Net Sales FY2014: Orders and sales for CFB boilers increased due to strong demand from the domestic biomass-fueled power generation sector. Orders and sales fell for water treatment plants due to the lack of large-scale renovation projects. FY2015: Dema
Slide 15: Performance Forecast for FY2015 by Segment
15 Performance Forecast for FY2015 by Segment Unit: JPY billion Record Record Forecast Forecast Record Forecast 1H-FY14 2H-FY14 1H-FY15 2H-FY15 FY2014 FY2015 Orders 51.4 53.3 55.0 55.0 104.7 110.0 Machinery Net sales 48.4 54.2 55.0 55.0 102.6 110.0 components Operating income 3.4 3.2 4.0 5.0 6.6 9.0
Slide 16: The Progress of Medium-Term Management Plan 2016
16 The Progress of “Medium-Term Management Plan 2016” President and CEO Shunsuke Betsukawa May 11, 2015
Slide 17: Progress of the Medium-Term Management Plan 2016
17 Progress of the “Medium-Term Management Plan 2016” Record Forecast Plan Objectives of “MTMP16” FY2014 FY2015 FY2016 1. “Steady growth” 2. “Return to higher levels of profitability” Continue to implement. 3. “Persistent efforts for operational quality improvements” 4. Numerical targets Expected to
Slide 18: Medium-Term Management Plan 2016 Targets and Issues for Steady Growth
“Medium-Term Management Plan 2016” 18 Targets and Issues for Steady Growth Keywords Targets and Issues Enhancement of competitiveness of Gear Speed Reducers (overseas) and Plastic Machinery. Globalization Enhancement of area marketing (Gear Speed Reducers, (Expansion) Plastic Machinery and Const
Slide 19: Positioning of Businesses in the Medium-Term Management Plan 2016
Positioning of Businesses 19 in the “Medium-Term Management Plan 2016” Growth businesses Self-sustaining Stable profitability (businesses aiming to grow (businesses focusing on (businesses aiming to and achieve high profitability becoming self-sustaining strengthen profitability) levels) and stable)
Slide 20: Growth Driving Businesses in the Medium-Term Management Plan 2016
Growth Driving Businesses 20 in the “Medium-Term Management Plan 2016” Enhance sales operations in North America and Southeast Asia. Make improvements in Europe. Gear Speed Reducers Focus on growth segments such as robots and machine tools. Launch new products and realize synergies with contro
Slide 21: Integrating the Industrial Crane Business
21 Integrating the Industrial Crane Business Aim to become the top Japanese crane maker while strengthening overseas operations. Summary Scheme Sumitomo Heavy Industries Material Handling Systems 1. Absorption-type company split Co., Ltd. (MH) will absorb Mitsubishi Heavy Industries MT will separa
Slide 22: Industrial Crane Business Strategy
22 Industrial Crane Business Strategy Stable growth through the ability to flexibly respond to market needs through a diverse portfolio of products and services. MH: Strong in products/services targeting Enhance line-up of products the shipbuilding and steel sectors. and services. MT: Strong in pr
Slide 23: Implement ONE-SHI strategy for energy-related businesses
23 Implement ONE-SHI strategy for energy-related businesses Promote collaboration and information sharing between divisions and product models in areas relating to the turbine and boiler businesses. Pursue synergies and sharing of business strategies targeting private power generators and IPP. Tur
Slide 24: Orders and future forecast for energy-related businesses
24 Orders and future forecast for energy-related businesses ■ Strong order receiving trend for boilers and turbines. Increase in demand due to the FIT System, and strong energy demand in emerging markets. < CFB boilers orders received (number of projects) > Unit : JPY billion 100 2012 2013 2014 2015
Slide 25: Forward-looking statements
25 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 subject to ch
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