Sodick Co., Ltd. · TSE:6143
Sodick — FY2020 Earnings Presentation
40 slides from Sodick's earnings presentation, Feb 19, 2021
Slide 1: FY20/12 Results Briefing
TSE 1st Section, 6143 FY20/12 Results Briefing February 19, 2021 Sodick Co., Ltd.
Slide 2: Table of Contents
Table of Contents I. FY20/12 Financial Results Summary 3 II. FY20/12 Financial Results Projections 22 III. Shareholder Return 27 IV. Med-term Plan 29 (Reference Materials) 2
Slide 3: I. FY20/12 Financial Results Summary
I. FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 3
Slide 4: Financial Results Highlights
Financial Results Highlights Due to the impact of the COVID-19 pandemic, sales of electrical discharge machines (EDMs) decreased sharply. Operating income fell about 46% from the same period of the previous year, mainly on account of a decline in the profitability of the plants associated with a
Slide 5: Financial Results Highlights (Quarterly)
Financial Results Highlights (Quarterly) Financial results recovered after hitting bottom in the 1Q. Net sales increased in the 4Q due to growth in sales of EDMs and injection molding machines, mainly in China. Income margin improved, too. (million yen) FY20/12 1Q Income 2Q Income 3Q Income 4Q I
Slide 6: Operating income margin
Ratio of Operating Income to Net Sales (Quarterly) Including sales of Chinese Net sales Sales of EDMs and subsidiaries during Jan-Mar Food processing machinery sales grew in 4Q. 2017 (approx. 3,500 million injection molding EDM sales remained weak owing to lower sales yen) volume. machines inc
Slide 7: Details of Changes in Operating Income
Details of Changes in Operating Income Sodick had operating income of 1,852 million yen owing to a substantial fall in gross profit due mainly to a decrease in net sales, although SG&A expenses fell by about 2,300 million yen as a whole owing mainly to a decrease in travel expenses resulting from
Slide 8: Financial Results by Segment
Financial Results by Segment (million yen) FY19/12 FY20/12 YoY chg. FY2020 Full-year projection Actual Actual (Amount) (Rate) (Revised on Nov. 13) Machine tool ● 45,797 38,024 −7,772 −17.0% 35,700 segment Industrial machinery ● 9,773 10,931 1,157 11.8% 10,200 segment Net Food processing ● 6,283 3,58
Slide 9: Financial Results by Segment: Machine Tool
Financial Results by Segment (million yen) Machine Tool Segment Net sales (Quarterly) Net sales 20,000 • The spread of COVID-19 had a significant negative impact on 16,613 15,136 the global economy as a whole. 16,000 13,366 13,49013,362 • Due to the suspension of business activities in a wide rang
Slide 10: Financial Results by Segment: Industrial Machinery
Financial Results by Segment (million yen) Industrial Machinery Segment Net sales (Quarterly) Net sales 4,000 3,419 • A situation where economic activities were 3,029 2,885 restrained continued due to the impact of 3,000 2,424 2,557 2,754 2,531 2,556 2,759 2,729 2,320 the global spread of COVID-19
Slide 11: Financial Results by Segment: Food Processing Machinery
Financial Results by Segment (million yen) Food Processing Machinery Segment Net sales (Quarterly) Net sales 3,000 2,813 • There was a continuous demand for sanitary equipment and equipment to 2,146 respond to manpower reduction and a 2,000 1,783 1,776 1,625 growing demand related to nest-dweller
Slide 12: Financial Results by Segment: Other Segments
Financial Results by Segment (million yen) Other Segments Net sales (Quarterly) Net sales • In the precision die and molding business, 2,000 1,714 1,781 demand in the automotive industry is 1,588 1,486 1,603 1,453 moving to pick up. 1,500 1,369 1,346 1,240 1,353 1,351 1,330 • Demand for ceramics i
Slide 13: Net Sales by Segment
Net Sales by Segment Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services and consumables Maintenance services and consumables Machine tool sales Industrial machinery sales Food processing machinery sales (milli
Slide 14: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment Net sales fell substantially in other regions than China. Ratio of overseas sales was 66.0% (million yen) North and South 30,000 Japan Europe Greater China Asia America 25,000 Others 20,000 Food processing machinery 15,000 Industrial machinery Machine 10,000 tools 5
Slide 15: Balance Sheet
Balance Sheet Although in inventories and non-current assets decreased, total assets increased by approximately 1,500 million yen from the end of the previous fiscal year due to increase inventories and non-current assets results from proceeds of long-term loans payable. Net assets decreased sli
Slide 16: Financial Indicators
Financial Indicators Fluctuation in interest-bearing debt, net interest-bearing debt, and the Debt-to-equity ratio (million yen) (times) 有利子負債 Interest- ネット有利子負債 Net interest- D/Eレシオ Dept-to- Convertible bonds with New shares bearing debt bearing debt equity ratio stock subscription rights 50,000 2.
Slide 17: Cash Flows
Cash Flows Cash flows from operating activities resulted in a surplus of 5,270 million yen, due mainly to decreases in inventories, despite a decline in profit before income taxes. Free cash flows increased by 3,859 million yen, because there was no major facility investments. Cash and cash equi
Slide 18: Capital Investment / Depreciation
Capital Investment / Depreciation Changes in Facility Investments / Depreciation (million yen) Facility 設備投資 減価償却費 Depreciation investments Major Facility Investments (FY20/12) 10,000 Renewal of production facilities at Kaga 8,000 8,576 Plant Test research facilities at Headquarters 6,000 Auto
Slide 19: Major New Products Released in FY20/12
Major New Products Released in FY20/12 Segment Machine tools Wire-cut EDM Small Hole EDM Metal 3D Printer “AL i Groove Edition” "K4HL" for aluminum alloy molding BMT Product name Aerospace, energy, automotive, Sales Automotive, home appliances, IT, medical equipment, electrical and Automotive market
Slide 20: Major New Products Released in FY20/12
Major New Products Released in FY20/12 Segment Industrial machinery Food processing machinery Vertical injection molding Inert gas dissolved injection Large double shaft mixer machine (Rotary model) molding system TM -350 W TR40VRE2 INFILT-V Product name Biodegradable plastic, Sales Precision, elect
Slide 21: Status of Responses to the Spread of COVID-19
Status of Responses to the Spread of COVID-19 Status of operations at our major sites is as shown below (as of February 12) Site Operation status Partially restrict the use of public transportation and continue to promote working at home Japan Implement a temporary time-off program for several days
Slide 22: II. FY20/12 Financial Results Projections
I. FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 22
Slide 23: Market Environment
Market Environment Japan: Although demand is expected for next-generation auto-related and 5G-related industries in addition to government subsidy policies and potential demand, such as replacement demand for aging equipment, the future is uncertain due to a decline in facility investment sentimen
Slide 24: FY21/12 Financial Results Projections
FY21/12 Financial Results Projections The impact of the spread of COVID-19 infection remains uncertain, but demand for high-precision processing machines is expected to increase in association with a growing move for lighter, more electrically and less gasoline-powered vehicles by the automotive i
Slide 25: FY21/12 Financial Results Projections by Segment
FY21/12 Financial Results Projections by Segment (million yen) FY20/12 FY21/12 Increase or decrease Machine tool segment Demands in 5G-related and semiconductor-related Actual Planned Amount Rate fields continued to recover in China. Demand for high-precision machines is expected to increase in li
Slide 26: Projections for Capital Investment / Depreciation / R&D Expenses
Projections for Capital Investment / Depreciation / R&D Expenses FY/21/12 (million yen) 設備投資 Facility 減価償却費 Depreciation investments 7,000 3,100 million yen 6,000 6,561 (up approx. 650 million yen YoY) 5,000 3,664 3,500 Capital • Expansion of production capacity at Amoy 4,000 3,399 investment Plant
Slide 27: III. Shareholder Return
I. FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 27
Slide 28: Shareholder Return Policy and Dividend Projection
Shareholder Return Policy and Divided Projection As a dividend policy, we aim at a dividend yield on shareholders’ equity (DOE) of at least 2%. For FY20/12, we are planning an annual dividend of 25 yen per share (interim dividend of 12 yen and fiscal year-end dividend of 13 yen). For FY21/12,
Slide 29: IV. Med-term Plan
I. FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 29
Slide 30: Medium-term Management Plan
Medium-term Management Plan Targeting net sales of 75,000 million yen with operating income of 7,600 million yen by FY23/12 Machine tools Industrial machinery Food processing machinery Others (million yen) (million yen) 100,000 20,000 82,716 75,000 Net sales Operating income 6,392 75,000 15,000 6,56
Slide 31: Management Strategies: Machine Tool Segment
Management Strategies by Business Segment (Machine Tool Segment) Objectives of Machine Tool Segment Net sales (million yen) 70,000 58,607 [Sales strategies] 60,000 48,400 • Offer comprehensive business 50,000 45,797 44,100 41,200 services/digitization/solution 38,024 40,000 • Promote digital marketi
Slide 32: Management Strategies: Industrial Machinery Segment
Management Strategies by Business Segment (Industrial Machinery Segment) Objectives of Industrial Machinery Segment Net sales (million yen) 15,000 [Sales strategies] 11,500 11,155 10,931 10,700 • Review and revise product lineups 9,773 10,300 • Strengthen sales structure in growing markets 10,000 •
Slide 33: Management Strategy: Food Processing Machinery Segment
Management Strategy by Business Segment (Food Processing Machinery Segment) Objectives of Food Processing Net sales (million yen) Machinery Segment 8,000 6,800 7,100 6,560 6,283 6,500 6,000 [Sales strategies] • Increase business performance by expanding 4,000 3,585 business areas • Strengthen overse
Slide 34: Management Strategy: Other Segments
Management Strategy by Business Segment (Other Segments) Objectives of Other Segments Net sales (million yen) 10,000 8,000 7,400 7,300 8,000 6,392 5,737 5,488 [Ceramics] 6,000 • Expand sales of ceramic components for 4,000 semiconductor manufacturing equipment 2,000 • Expand sales channels in high-v
Slide 35: Management Strategy: Management Bases
Management Strategy by Business Segment (Management Bases) Objectives for Management Bases [Reform of management system] [Promotion of work-style reform] • Restructure business management system • Put new personnel evaluation system in place • Establish bases for making business solutions and establ
Slide 36: (Reference Materials)
I. FY20/12 Financial Results Summary II. FY20/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 36
Slide 37: Reference Materials: Domestic and Overseas Sites
Reference Materials: Domestic and Overseas Sites Sodick America Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant Corporation(San Jose) (Chicago) Software Co., Ltd. (Multi-factory) Head Office and Research and Technology Center Sodick Europe Ltd. (U.K.) Fukui Plant Ｑ Sodick Deutschland GmbH Sod
Slide 38: Reference Materials: Participation in Major Exhibitions
Reference Materials: Participation in Major Exhibitions Period Location Exhibition Notes 2021 SIMM (Shenzhen International Industrial Mar. 30-Apr. 2 China Shenzhen Manufacturing Technology Exhibition) One of the world's biggest machine tool Apr. 12-17 China Beijing CIMT (China International Machine
Slide 39: Sodick Web Exhibition
[References] Sodick Web Exhibition Our website URL: https://www.sodick.co.jp/ We introduce our latest machines and technologies with a movie at Sodick Web Exhibition. A wide range of contents including our group's overseas sites is also available. 39
Slide 40: Disclaimer
Disclaimer This presentation material has been prepared exclusively for the purpose of providing information, the material was not created to advertise, solicit, market, etc., specific products or shares of the Company. This information included in this material is not required by the Financial Inst