Sodick Co., Ltd. · TSE:6143
Sodick — Q2 FY2021 Earnings Presentation
34 slides from Sodick's earnings presentation, Aug 13, 2021
Slide 1: 2Q FY21/12 Results Briefing
Tokyo Stock Exchange First Section 6143 2Q FY21/12 Results Briefing Sodick Co., Ltd. August 13, 2021
Slide 2: Contents
Contents I. 2Q FY21/12 Financial Results Summary II. FY21/12 Financial Results Projections III. Priority Measures (References) 2
Slide 3: I. 2Q FY21/12 Financial Results Summary
I. 2Q FY21/12 Financial Results Summary II. FY21/12 Financial Results Projections III. Priority Measures (References) 3
Slide 4: Financial Results Highlights
Financial Results Highlights Net sales increased by approximately 30% from the same period of the previous year as sales of electrical discharge machines (EDMs) increased in the West after Greater China. Gross profit increased significantly due to the improved profitability at plants associated
Slide 5: Financial Results Highlights (Quarterly)
Financial Results Highlights (Quarterly) In the second quarter, sales increased in all segments, including increased sales of EDMs in Greater China and the West, as well as increased sales of industrial machinery and food machinery. Profits also increased significantly owing to the improved prof
Slide 6: Ratio of Operating Income to Net Sales (Quarterly)
Ratio of Operating Income to Net Sales (Quarterly) Machine tools Industrial machinery Net sales Food machinery Others Sluggish sales of EDMs due to trade Sales decreased due to the Operating income margin friction between the U.S. and China. spread of COVID-19. Recovery is seen in Greater Sales of
Slide 7: Details of Changes in Operating Income
Details of Changes in Operating Income Gross profit increased significantly, as unit sales increased. Labor costs increased and transportation costs and sales commissions associated with an increase in the number of units sold increased, while increases in travel expenses and promotion/advertise
Slide 8: Financial Results by Segment
Financial Results by Segment FY20/12 FY21/12 YoY change FY21/12 Full-year (million yen) projection (Revised on Aug. 6) 2Q Actual 2Q Actual (Amount) (Rate) Machine tool 17,063 24,145 7,082 41.5% 48,600 segment Industrial machinery 5,316 4,628 -688 -12.9% 10,500 segment Food machinery 1,515 2,521 1,00
Slide 9: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment (million yen) ■ Machine Tool Segment Net sales (Quarterly) Net sales 16,000 • In Greater China, sales of automotive, electronic 13,362 13,762 11,298 components, 5G and semiconductors remained 12,000 11,054 11,706 10,382 10,081 strong. Sales in the West continued to pick
Slide 10: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment (million yen) ■ Industrial Machinery Segment Net sales (Quarterly) Net sales 4,000 • In the second quarter, sales of medical products in 3,029 North America remained strong, while sales of 3,000 2,759 2,729 2,885 2,734 2,531 2,556 products for automotive and electronic c
Slide 11: Financial Results by Segment: Food Machinery Segment
Financial Results by Segment (million yen) ■ Food Machinery Segment Net sales (Quarterly) Net sales 3,000 2,813 • There are continuing projects related to demand for sanitary equipment and equipment for responding 1,940 to workforce reduction and for nest-dweller 2,000 1,776 consumption resulting fr
Slide 12: Financial Results by Segment: Other Segments
Financial Results by Segment (million yen) ■ Other Segments Net sales (Quarterly) Net sales • Demand for ceramics continues owing to increased 2,000 1,781 1,748 demand for information and communications 1,453 1,460 1,500 1,369 1,346 equipment, etc. 1,240 1,353 1,351 1,330 • The precision die and mol
Slide 13: Net Sales by Segment
Net Sales by Segment Net sales of maintenance services and consumables increased owing to an improvement in machine operating rates. Net sales of maintenance services and consumables that generate stable cash flows account for approximately 20%. Machine tool segment Industrial machinery segment
Slide 14: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment The ratio of overseas sales rose to over 70.0% owing to a significant increase in sales of EDMs in Greater China, as well as the recovery trend in the West. (million yen) Japan North and South America Europe Greater China Asia 16,000 14,000 Others 12,000 Food 10,000
Slide 15: Balance Sheet
Balance Sheet Results of conversion of "The first series of unsecured convertible As a result of the conversion of convertible bonds into bond-type bonds with subscription rights to shares"(*) into new shares (redemption date of April 16, 2021) new shares that became due in April 2021, we achieved
Slide 16: Cash Flow
Cash Flow Free cash flow was positive at 5,675 million yen. 2Q FY20/12 FY20/12 2Q FY21/12 Breakdown of major factors Increase in trade payables of 4,400 million yen and in Cash flows from operating advances received of 3,300 million yen 3,871 5,270 6,403 activities Increase in inventories of -3,00
Slide 17: II. FY21/12 Financial Results Projections
I. 2Q FY21/12 Financial Results Summary II. FY21/12 Financial Results Projections III. Priority Measures (References) 17
Slide 18: 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 the impact of the reemergence of COVID-19 an
Slide 19: Machine Tool Orders by Region
0 50 100 150 200 0 200 400 600 800 1,000 Jan.–Mar. 1-3月 1-3月 Jan.–Mar. Apr.–Jun. 4-6月 Apr.–Jun. 4-6月 2016 Jul.–Sep. 7-9月 2016年 2016 Jul.–Sep. 7-9月 2016年 Oct.–Dec. 10-12月 Oct.–Dec. 10-12月 Jan.–Mar. 1-3月 1-3月 Jan.–Mar. Apr.–Jun. 4-6月 Apr.–Jun. 4-6月 2017 Jul.–Sep. 7-9月 2017年 2017 Jul.–Sep. 7-9月 2017年 O
Slide 20: FY21/12 Full-year Financial Results Projections (Compared with Initial Projections)
FY20/12 Full-year Financial Results Projections (Compared with Initial Projections) The full-year financial results projections were revised upward in consideration of the results for the second quarter and recent orders received. Recent orders for EDMs have been high, but concerns remain that l
Slide 21: FY21/12 Full-year Financial Results Projections (progress)
FY21/12 Full-year Financial Results Projections (progress) The full-year financial results projections were revised upward in consideration of the results for the second quarter and recent orders received. 2Q FY21/12 FY21/12 Full-year FY20/12 Progress (million yen) Projection toward Income Income
Slide 22: FY21/12 Full-year Financial Results Projections (by Segment)
FY21/12 Full-year Financial Results Projections (by Segment) Machine tool segment Food machinery segment There is potential demand for high-precision machines in other Sales of noodle-making equipment and rice processing fields such as automotive and 5G, mainly in Greater China, equipment are ex
Slide 23: Shareholder Return Policy and Dividend Projection
Shareholder Return Policy and Divided Projection Dividend policy: Dividend on equity (DOE) of 2% or more The annual dividend for the fiscal year ending December 2021 is expected to be 26 yen (13 yen both for intermediate and year-end dividends) (No change from the beginning of the fiscal year) (ye
Slide 24: III. Priority Measures
I. 2Q FY21/12 Financial Results Summary II. FY21/12 Financial Results Projections III. Priority Measures (References) 24
Slide 25: Priority Measures: New Plant in Xiamen, China
Priority Measures Xiamen, China Started construction of a new plant for manufacturing 1 industrial and food machinery at the Amoy Plant. Overview of Sodick Amoy Co., Ltd. Location West Yangguang Road, Haicang District, Xiamen, Fujian Province, P. R. China Site area 13,753 m2 (Building area: 12,149 m
Slide 26: Priority Measures: DX Initiatives
Priority Measures 2 DX Initiatives Conduct webinars 26
Slide 27: Priority Measures: DX Initiatives, Remote School Support
Priority Measures 2 DX Initiatives Remote school support (EDMs and injection molding machines) <Electrical discharge machines (EDMs)> <Injection molding machines> We conduct remote training using our usual By remotely operating the injection molding machine wire-cut EDM machines, tablets and weara
Slide 28: Priority Measures: DX Initiatives, Web Exhibition
Priority Measures 2 DX Initiatives Expanding content at our Web Exhibition (external website) 28
Slide 29: (References)
I. 2Q FY21/12 Financial Results Summary II. FY21/12 Financial Results Projections III. Priority Measures (References) 29
Slide 30: References: Business Segment Composition and Major Products
References: Business Segment Composition and Major Products Segment Machine tools Industrial machinery Food machinery [Die-sinker EDM] [Horizontal injection molding [Noodle-making equipment [Wire-cut EDM] machine] (Noodle production line)] [Small Hole EDM] [Metal 3D Printer] [Vertical injection Key
Slide 31: References: Domestic and Overseas Sites
References: Domestic and Overseas Sites Head Office and Research and Technology Center Miyazaki Plant Head Office Production site R&D Site Sales and Service Site Fukui Plant Sodick America Corporation (San Jose) Shanghai Sodick Software Sodick Suzhou Sodick Special Equipment Co., Ltd. Amoy Co., Ltd.
Slide 32: References: Participation in Major Exhibits
References: Participation in Major Exhibits Period Location Exhibition Summary and Remarks 2021 9/29-10/1 Japan Nagoya Nagoya Plastic Industrial Fair 2021 10/20-23 Japan Nagoya MECT (MECHATRONICS TECHNOLOGY JAPAN) 2021 Machine Tool Show *Due to the spread of COVID-19, the exhibition schedule may cha
Slide 33: References: Web Exhibition and Official YouTube Channel
References: Web Exhibition and Official YouTube Channel Our website URL: https://www.sodick.co.jp/ Introducing our latest machines and technologies with a video at Sodick Web Exhibition A wide range of contents including our group's YouTube channel is also open! overseas sites is also availabl
Slide 34: 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. The information included in this material is not required by the Financial Instr