Hosokawa Micron Corporation · TSE:6277
Hosokawa Micron — H1 FY2016 Earnings Presentation
27 slides from Hosokawa Micron's earnings presentation, Jun 1, 2016
Slide 1: Financial Results (the 1st half of FY2016)
Hosokawa Micron Group Financial Results (ｔhe 1st half of FY2016) （at the Securities Analysts Association of Japan） Jun. 1st 2016 President : Yoshio Hosokawa http://www.hosokawamicron.co.jp/en/
Slide 2: Financial Summary (the 1st half of FY2016)
Financial Summary (the 1st half of FY2016) ◆ Consolidated financial summary
Slide 3: Financial results (the 1st half of FY2016, consolidated)
１ Financial results (the 1st half of FY2016, consolidated) (100 million yen) FY2015 FY2016 1stH 1stH revised Original plan % on actual actual plan Pre.Year May.6 th Booking 259 242 93.6% Sales 211 212 237 212 100.4% Gross Profit 72 75 (percentage) 34.5% 35.7% Ope. Profit 6 13 13 13 230.2% (percentag
Slide 4: Financial results and forecast (consolidated)
２ Financial results and forecast (consolidated) Sales(1stH) Sales(2ndH plan） GPR SGA Ratio Ope. Profit Ratio 40% 600 35.9% 35.7% 34.8% 34.1% 34.4% 35% 473 500 R, SGA Ratio, Ope.Profit Ratio（ %） ） 449 485 455 30% 406 （ million yen） ） 29.3% 29.1% 400 25% 27.3% 27.1% 26.3% 261 262 243 20% 300 Sales（ 23
Slide 5: Financial results (consolidated)
３ Financial results (consolidated) 240 50 Backlog Booking Sales Ope.Profit 220 45 ※not include the influence of Booking, Sales, Backlog（100million yen） 200 exchange rate fluctuations 40 180 Lehman Shock 35 Ope.Profit（100million yen） 160 30 140 25 120 20 100 15 80 10 60 5 40 0 20 (5) 0 (10) 1 Qtr. 2
Slide 6: Financial results (by business segments, consolidated)
４ Financial results (by business segments, consolidated) 【Sales】 (100 million yen) FY2015 FY2016 % on actual actual Pre.Year Powder Proc'g 151 162 107.4% Blown Film 47 49 103.9% Confectionary 14 - Total 211 212 100.4% 【Ope.Profit】 (100 million yen) FY2015 FY2016 % on actual actual Pre.Year Powder Pr
Slide 7: Financial results (by business segment)
５ Financial results（ results（by business segment） segment） Confectionery business sellout （ 100 million yen） yen） Booking （ 100 million yen） yen） Backlog After 0 600 200 Confectionery Confectionery Blown Film Blown Film 24 500 14 Powder Processing 36 Powder Processing 73 39 40 6 150 23 12 6 5 9 52 2
Slide 8: Financial results (1st half of FY2016): Powder Processing
６ results (the 1st half of FY2016) Financial results ＜Powder Processing＞ Sales Ratio of powder processing business： business：76.7％ 76.7％ Booking, Sales, Backlog 400 Booking, Sales, Backlog 1stH 2ndH Backlog （100 million yen） 300 200 100 0 Booking Sales Booking Sales Booking Sales ＜Point＞ FY2014 FY20
Slide 9: The 1st half of financial results: Blown Film
７ The 1st half of financial results ＜Blown Film＞ Sales Ratio of blown film Business： Business：23.3％ 23.3％ Booking, Sales, Backlog Booking, Sales, Backlog（100 million yen） 140 1stH 2ndH Backlog 120 100 80 60 40 20 0 Booking Sales Booking Sales Booking Sales FY2014 FY2015 FY2016 1stH ＜Point＞ Ope.Profi
Slide 10: Blown Film Business jumped up
８ Blown Film Business jumped up ＜Point＞ * Keeping good situation in U.S. economy * Downward trend of resin material price by collapse of the oil price * Increase of capital investment by renewal of the plastic film plants * Increase of demand in developing countries * Business policy based on custom
Slide 11: Sales by Operating Area (consolidated)
９ Sales by Operating Area（ Area（consolidated） consolidated） (million yen) FY2015 FY2016 % on 1stH 1stH Pre.Year Japan Sales 5,930 6,872 115.9% Ope.Profit/% 815 13.7% 1,369 19.9% 168.0% America Sales 3,635 4,235 116.5% Ope.Profit/% 297 8.2% 341 8.1% 114.8% Europe Sales 13,317 12,053 90.5% Ope.Profit/
Slide 12: Sales by Destination (consolidated)
１０ Sales by Destination（ Destination（consolidated） consolidated） (million yen) FY2015 FY2016 % on 1stH 1stH Pre.Year Japan Sales 5,389 6,045 112.2% % 25.5% 28.5% America Sales 4,416 4,622 104.7% % 20.9% 21.8% Europe Sales 7,796 6,699 85.9% % 36.9% 31.6% Asia& Sales 3,532 3,853 109.1% Others % 16.7%
Slide 13: Sales by Destination (by quarter, consolidated)
１１ Sales by Destination（ Destination（by quarter, consolidated） consolidated）
Slide 14: Bookings by Market Segments (consolidated)
１２ Bookings by Market Segments （consolidated） consolidated） FY2016 1stH FY2015 FY2014 ← Depend on booking of Blown film is good condition
Slide 15: Financial results and forecast (HMC, Japan)
１３ Financial results and forecast (HMC, Japan) Sales(1stH) Sales(2ndH plan） GPR SGA Ratio Ope. Profit Ratio 41.5% 41.2% 41.4% 42.1% 200 ＧＰＲ, SGA Ratio, Ope. Profit Ratio（（ %）） 38.9% 39.2% 40% 36.1% 155 31.9% 36.4% 31.9% 150 Sales (100 million yen) 30% 133 28.2% 132 30.6% 117 113 92 100 20% 75 73 52
Slide 16: Selling, General and Administrative expense (consolidated)
１３ Selling, General and Administrative expense（ expense（consolidated） consolidated） HMC（Japan） SGA decrease => 60 million yen decrease against the previous year
Slide 17: Dividend per share and Payout ratio
１５ Dividend per share and Payout ratio FY2016（ FY2016（plan） plan） （yen） year-end year- year-end ordinary dividend 7.5 yen midterm 70.0% 20.0 + payout ratio commemorative dividend 2.5 yen = Total 10.0 yen 17.5yen 60.0% 1 5yen 1 5yen 15.0 50.0% payout ratio 12yen 12 yen dividend 10.0 40.0% 7.5 7.5 10.
Slide 18: Outline of the FY2016 Plan
Outline of the FY2016 Plan (Oct.2015～Sep.2016) ◆Important strategies ◆Business plan ◆Focus points
Slide 19: The 15th Midterm Management Plan: Basic strategies
１５ The 15th Midterm Management Plan Maximize the Group Synergy and enhance revenue and profit, increasing our corporate value ～With 100 anniversary of the founding to mark the start of leaping, master technologies and contribute to make for the next generation ～ ◆ Consecutive development of competit
Slide 20: FY2016 Management Plan (Important strategies)
１６ FY2016 Management Plan（ Plan（Important strategies） strategies） Important strategies ◆ Development of innovative products and technologies, and expand to sell with group sales net. ◆ Construct the sales system for South American market and expand business for Southeast Asian market. ◆ Share inform
Slide 21: FY2016 Management Plan (Business plan)
１８ FY2016 Management Plan（ Plan（Business plan） plan） FY2015 FY2016 Actual Plan Forecast Sales 473 485 455 Operating Profit 25 30 31 Full year forecast （on Sales） 5.2% 6.2% 6.8% ⇒Reflect of the situation Ordinary Profit 26 30 31 on first half year （on Sales） 5.6% 6.2% 6.8% Net Income 25 20 21 （on Sal
Slide 22: FY2016 Management Plan (Focus point)
２４ FY2016 Management Plan（ Plan（Focus point） point） ◆ Competitive Products and Technologies ◆ Enhancement of Sales Promotion to developing countries ◆ Sales expansion to Active Markets ◆ Expansion of After Sales Business ◆ Improvement of Earning Potential
Slide 23: Competitive Products and Technologies
２０ FY2016 Management Plan（ Plan（Focus point） point） ＜ Competitive Products and Technologies ＞ ●Grinding machine for magnetic material Target type jet Mil MJQ ●Hair growth formula（Brand-new in April, 2016） NanoImpact 100 (Quasi-drug)
Slide 24: Enhancement of Sales Promotion to developing countries
２１ FY2016 Management Plan（Plan（Focus point） point） ＜ Enhancement of Sales Promotion to developing countries ＞ ●China, Korea and Thailand → trend in recovering ●Russia and Eastern Europe → Decrease 【Sales result and forecast for developing countries 】 180 166.4 160 151.4 140 ＜Midterm plan＞ plan＞ 120
Slide 25: Sales expansion to Active Markets: pharmaceutical market
２２ FY2016 Management Plan（ Plan（Focus point） point） ＜ Sales expansion to Active Markets ＞ 【Booking trend in pharmaceutical market（consolidated）】 （million yen） Increased in stable way → 1stH in this term Progress is dull and stagnates in England, Netherland and Japan
Slide 26: Sales expansion to Active Markets: after sales, toll processing
２３ FY2016 Management Plan（ Plan（Focus point） point） ＜ Sales expansion to Active Markets ＞ 【After sales（consolidated）】 【Toll processing（consolidated）】 （100 million yen） （100 million yen） 120 25 【Sales current】 106 109 21.2 21.8 100 90 20 84 17.6 80 74 15.4 15.5 15 62 13.2 60 49 10.6 10 40 5 20 0 FY20
Slide 27: Improvement of Earning Potential
２４ FY2016 Management Plan（ Plan（Focus point） point） ＜ Improvement of Earning Potential ＞ ● Concentration to core business Confectionery business divested ⇒ Concentration of management resources (Powder processing business and Blown film business) ● Enhancement of the peripheral business Acquisition