Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — Q2 FY2012 Earnings Presentation
23 slides from Sumitomo Heavy Industries's earnings presentation, November 2012
Slide 1: Part 1: Second Quarter Financial Summary and Projections for FY2012
Part 1: Second Quarter Financial Summary and Projections for FY2012 Sumitomo Heavy Industries, Ltd. November 2012
Slide 2: FY2012 Second Quarter Performance Summary
1-1 FY2012 Second Quarter Performance Summary ■ Key points Unit: JPY billion (1) Orders ・Overall decline due to difficult market FY2012 FY2011 Change conditions. 1H 1H (2) Net Sales ・Increases seen in Precision Machinery Orders 266.6 301.6 (35.0) and Environmental Facilities and Plant segments. Decr
Slide 3: Orders and Net Sales
1-2 Orders and Net Sales Unit: JPY billion Orders Net Sales Order levels were relatively low due to the sluggish Increases seen in the Precision Machinery and economy. No orders for new ships were received. Environmental Plant and Facilities segment as compared to the previous period. Two ships hand
Slide 4: Operating Income by Segment
1-3 Operating Income by Segment ■ Comparison with previous year Unit: JPY billion <Machinery Components> Decline in income due to a reduction in orders FY2012 FY2011 Change domestically and the lower profitability levels of large 1H 1H scale models. <Precision Machinery> Machinery Slight reduction i
Slide 5: Analysis of change in Operating Income (FY2011 1H to FY2012 1H)
Analysis of change in Operating Income 1-4 (FY2011 / 1H to FY2012 / 1H) Unit: JPY billion Impact of sales reduction/increase (0.9) Impact of currency 21.6 exchange fluctuations (1.3) Sales administrative costs (2.3) Improvement of cost of sales, etc. ＋0.2 17.4 FY2011 FY2012 1H 1H November 2012
Slide 6: Consolidated Balance Sheet
1-5 Consolidated Balance Sheet Unit: JPY billion September March September March Change 2012 2012 Change 2012 2012 Current assets 386.1 429.0 (43.0) Liabilities 361.0 409.7 (48.7) Cash and deposits Notes and accounts 131.0 153.8 (22.9) 43.7 73.4 (29.7) payable Notes and accounts 168.3 181.2 (12.9) A
Slide 7: Consolidated Cash Flow Statement
1-6 Consolidated Cash Flow Statement Unit: JPY billion Category FY2012 FY2011 Change 1H 1H Operating activities (4.7) 13.5 (18.3) Income before income taxes 15.5 17.4 (1.9) Depreciation 8.5 8.5 (0.1) Working capital (18.9) (0.2) (18.7) Others (income taxes etc.) (9.9) (12.2) 2.3 Investing activities
Slide 8: Performance Forecast for FY2012 by Segment
1-7 Performance Forecast for FY2012 by Segment ■ Key Points: (1) Orders significantly impacted by the decline in demand for hydraulic excavators from the Chinese market in the Construction Machinery segment. (2) Decline in sales for machinery components, construction machinery, industrial machinery
Slide 9: Performance Forecast for FY2012
1-8 Performance Forecast for FY2012 ■ Key Points: ・As the difficult order environment is expected to persist for the time being, the full-year income projection announced at the end of July has been put on hold. The projections do not include the potential penalty payments for the overcharging claim
Slide 10: Part 2: Management Strategy
Part 2: Management Strategy November 2012
Slide 11: Transitions of Orders and Net Sales
2-1 Transitions of Orders and Net Sales Unit: JPY billion Orders Net Sales Order environment for construction machinery and Ships segment is expected to hand over three ships machinery components remain weak. However, in the second half of the fiscal year. Conditions in multiple large-scale opportun
Slide 12: Order-receiving Environment for FY2012 2H by Segment
2-2 Order-receiving Environment for FY2012 2H by Segment ■ Future outlook for mass produced machinery remains uncertain due to the impact of the long-term financial strain in Europe and the delay in the recovery of the Chinese economy. ■ With the exception of certain areas, the order environment for
Slide 13: Machinery Components
2-3 Machinery Components Unit: JPY billion Power transmission & control equipment: 75 Orders FY2012 / 1H: Although positive signs were seen in overseas markets with the exception of China, there was a slowdown 50 in the domestic market, especially for large-scale models. 49.2 45.8 46.4 43.6 25 FY201
Slide 14: Precision Machinery
2-4 Precision Machinery Unit: JPY billion Orders Plastic machinery: 100 FY2012 / 1H: Demand from North Asian markets, in particular China, 74.1 69.9 75.0 fell while Japan was down slightly. European market was relatively 65.0 Advanced precision flat. Increases achieved for sales for the flooding-rec
Slide 15: Construction Machinery
2-5 Construction Machinery Unit: JPY billion Hydraulic excavators: Orders FY2012 / 1H: Strong earthquake-recovery related demand 100 86.4 79.5 domestically resulted in better results than first anticipated at the 15.3 75.9 70.5 beginning of the year. Overseas demand, especially from China, 16.1 22.8
Slide 16: Industrial Machinery
2-6 Industrial Machinery Unit: JPY billion Forging press : 50 Orders FY2012 / 1H: Orders from overseas Japanese manufacturers continued to be received. Forging press FY2012 / 2H: Continue to focus on sales activities aimed at both domestic Material Handling 43.4 systems and overseas customers. 35.2
Slide 17: Ships
2-7 Ships Ships: 50 Orders Unit: JPY billion FY2012 / 1H: No recovery was seen in the tanker market while ship owners continue to take a wait and see approach. As a result, no orders for new ships were received in the first half of the fiscal year. Sales-wise, only two ships were 13.1 handed over du
Slide 18: Environmental Facilities and Plants
2-8 Environmental Facilities and Plants Unit: JPY billion CFB Boilers for IPP: Orders 100 FY2012 / 1H: We received one boiler order from a domestic customer. FY2012 / 2H: Domestic market is expected to improve due to FIT (Feed-in tariff) and 64.8 efforts will be made to ensure that we are ready for
Slide 19: Overseas Sales
2-9 Overseas Sales Unit: JPY billion Overseas Sales by Regional Segment FY2012 / 1H Overseas Sales by Segment Environmental facilities and plants Machinery components Unit: JPY billion 6.9 Ships (4%)22.4 400 21.0 (14%) (13%) Precision 330.0 Industrial machinery 14.0 machinery 296.1 294.1 27.8 293.3
Slide 20: Notes on the overcharging of expenses related to Ministry of Defense contracts
Notes on the overcharging of expenses 2-10 related to Ministry of Defense contracts ■ Summary With respect to defense equipment contracts entered into with the Ministry of Defense, it was discovered that expenses were inflated through the shifting of man-hours for indirect operations. ■ Total Contra
Slide 21: Notes on the Incinerated Ash Melting Facility for the City of Kyoto
Notes on the Incinerated Ash Melting Facility 2-11 for the City of Kyoto ■ Status May 2011 ~ Nov 2011: Carried out test operations of the incinerated ash melting facility Nov 2011: Stopped test operations Nov 2011 ~ Apr 2012: Carried out the following - Inspected each piece of equipment in the facil
Slide 22: Management Policies
2-12 Management Policies FY2012: The aim is for a “Strong and Powerful SHI” that can pursue the global markets and come out on top of the competition, based on basic policies of “globalization” and “innovation”. 9Abide by Management Discipline and Financial Discipline, establish sustainable competit
Slide 23: Forward-looking statements
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 chang
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