Slide 1: Interim Financial Results Briefing
INTERIM FINANCIAL RESULTS BRIEFING August 8th 2024 THK CO., LTD. President & COO TAKASHI TERAMACHI This presentation material contains forward looking statements that reflect the Company’s business plans, performance projections, and management strategy. Such statements are based on information curr
Slide 2: Contents
Contents Ⅰ. Financial Results for 1st Half of Fiscal 2024 Ⅱ. Major Measures Ⅲ. Financial Forecast for Fiscal 2024 Copyright THK CO., LTD. 2024. All rights reserved.
Slide 3: I. Financial Results for 1st Half of Fiscal 2024
Ⅰ. Financial Results for 1st Half of Fiscal 2024 Copyright THK CO., LTD. 2024. All rights reserved.
Slide 4: Financial Highlights
Financial Highlights ※地域別売上高は Consolidated sales revenue declined 3.1% YoY to 179.8 billion yen 海外売上高ベース The outlook for the global economy remains uncertain, with matters for concern including heightening geopolitical risks, notably in Ukraine and the Middle East, ongoing inflation, and the sluggis
Slide 5: Trend in Revenue
Trend in Revenue *The growth rates are just for reference 207,017 Asia and other 186,670 Down 27.7％ 17,173 ●Taiwan millions of yen 185,593 179,851 ●Singapore Down 29.2％ Asia and other ●India Up 12.0％ 16,615 13,443 166,345 11,893 44,877 China 11,612 China ●Machine tools Up 3.5 ％ 34,148 30,254 ●Genera
Slide 6: Operating Income Change Factors (Industrial Machinery)
(Ref.) Operating Income – Change Factors – (Industrial Machinery) FY23 FY24 By type of business Unit: billions of yen 1H 2H 1H Industrial Revenue 119.1 98.4 105.5 Machinery Operating 16.4 5.8 7.8 Income (10.0) 0.4 16.4 (0.3) (0.4) 1.7 Billions of yen 7.8 Billions of yen Operating Income Effect Incre
Slide 7: Operating Income Change Factors (Automotive & Transportation)
(Ref.) Operating Income – Change Factors – (Automotive & Transportation) FY23 FY24 By type of business Unit: billions of yen 1H 2H 1H Automotive & Revenue 66.5 67.9 74.3 Transportation Operating 0.1 1.5 0.6 Income *The figures for the Automotive & Transportation Business are the combined figures of
Slide 8: Assets, Liabilities and Equity
Assets, Liabilities and Equity Total Assets 586,776 millions of yen Up ¥30,424 million from previous period Cash and Cash in Account |Y/Y : Current liabilities| Y/Y : Down ¥1,692 million Up ¥2,429 million Cash Flows from Operating Activities : ■Trade and other payables | Y/Y : ¥18,514 million Down ¥
Slide 9: II. Major Measures
Ⅱ. Major Measures Copyright THK CO., LTD. 2024. All rights reserved.
Slide 10: THK Management
THK Management Corporate Philosophy Providing innovative products to the world and generating new trends to contribute to the creation of an affluent society Vision Manufacturing and innovative services company Sustainability / ESG Copyright THK CO., LTD. 2024. All rights reserved. 9
Slide 11: Strengthening global business + Strengthening local business
The Decentralization of Customer Production and “Glocal” Support Because production is becoming more decentralized as a result of supply chain disruption during the coronavirus pandemic and the manifestation of geopolitical risks, equipment design, component procurement, and MRO are becoming more de
Slide 12: Enhancement of the Global Manufacturing Structure
Enhancement of the Global Manufacturing Structure Thoroughgoing cost reductions are being carried out by introducing automation and robotics at each production site Industrial Machinery Business 23 Automotive & Transportation TRA GmbH(DEU) TRA CZECH(CZE) Business 14 TRA MICHIGAN(USA) TRA CANADA(CAN)
Slide 13: Enhancing Corporate Value
Enhancing Corporate Value Management Targets FY2026 Proactively direct capital to Ｐ Revenue：500.0 billions of yen Operating Income：100.0 billions of yen investment and Ｂ ROE 17% EPS ¥590 allocate it Ｒ Enhance ROIC in each business appropriately to increase return, the Accelerate efforts in each Indu
Slide 14: Key Initiatives in Business Lines
Key Initiatives in Business Lines Medium- to long-term markets are growing Management Targets Revenue（Upper row：billions of yen） Revenue：500.0 billions of yen Operating Income（Lower row：billions of yen） Operating Income： 100.0 billions of yen EPS ¥590 ROE17% Consolidated IFRS 1H Results 393.6 179.8
Slide 15: Evolution of the Industrial Machinery Business
Evolution of the Industrial Machinery Business Automation, labor shortages, and sustainability Supply Chain (Past) Ecosystem (Future) Machine user Machine builder Machine user Cooperation Supply products IoT services Machine builder Service robots Evolution Cooperation Cooperation Transport systems
Slide 16: Reorganization Aimed at Advancement of the Industrial Machinery Business
Reorganization Aimed at Advancement of the Industrial Machinery Business Existing New Organization Organization Future Business Style Headquarters - Headquarters - Machine builder Machine user Industrial Industrial Machinery Machinery Cooperation Sales LM System Division Sales Division IoT services
Slide 17: Expanding applications through the Linear Motion Core Technology
Expanding applications through the Linear Motion Core Technology Bring high-precision products to increasingly high-precision Existing areas semiconductor manufacturing equipment New business Helping the service industry promote labor-saving whose demands have been areas increasing due to a labor sh
Slide 18: New Products/Products Under Development
New Products/Products Under Development Among Linear Motion and Rotary Components Contributing to the Cutting Edge of Automation Six-Hole Type Added for Miniature LM Guide Model AHR for Ultra-Low Waving Caged Ball LM Guide with ISO-Compliant Dimensions Ball Screw with Nut Cooling Interchangeable LM
Slide 19: Introducing FA Solution Business
Introducing FA Solution Business OEE Optimization System OMNIedge Past expansion Service name Launch date Phase 1 Predictive failure detection AI solution for linear January 2020 motion components Phase 2 Predictive failure detection AI solution for rotary February 2022 components Phase 3 Tool Monit
Slide 20: OMNIedge package for multi-unit introduction
OMNIedge package for multi-unit introduction Functional blocks that can be added or removed to facilitate multi-unit introduction Block (2) AI diagnosis service, cloud storage Service by THK data scientists Router+SIM Note: Photos are for illustration purposes Freely combined Sensor Sensor AI contro
Slide 21: OMNIedge AI diagnosis service with growing use cases
OMNIedge AI diagnosis service (ADV) with growing use cases Realizes predictive failure detection by merging digital and analog services, drawing on AI and THK data scientists ■Linear motion part AI ■Industry: Automotive ■Equipment: Robotic cart (linear motion components) ■Trend: Continued rise in AI
Slide 22: Mobile robots: Multi-unit control easily realized
Mobile robots: Multi-unit control easily realized Next-generation transport robot SIGNAS integrated control system Besides installing access points, communication capability in SIGNAS itself can be used to operate multiple units. Since signposts are used for route navigation, the transport route can
Slide 23: Progress on Reorganization of Automotive and Transportation Business
Progress on Reorganization of Automotive and Transportation Business FY2020– Business restructuring FY2023 Turned profitable FY2024– Achieve profit growth Continuation and strengthening of recovery plan Manufacturing restructuring / Organizational restructuring [Existing products] Existing products
Slide 24: Automotive and Transportation Business Initiative
Automotive and Transportation Business Initiative Accelerate next-generation product development propelled by “CASE” Next-generation new technology Next-generation new products Existing products (being developed) (being sold) Copyright THK CO., LTD. 2024. All rights reserved. 23
Slide 25: About Sustainability Management
About Sustainability Management Basic Sustainability Policy The THK Group aims to both enhance corporate Corporate Providing innovative products to the world and value through its core business and contribute to Philosophy generating new trends to contribute to the creation of an affluent society. t
Slide 26: Working to Promote Carbon Neutrality
Working to Promote Carbon Neutrality Third–Party Certification (ISO 14064) We have received third-party verification that our Scope 1*¹ and Scope 2*² GHG emissions calculations during the 2023 fiscal year (January 1 to December 31, 2023) are in accordance with the ISO 14064-3 calculation rules stipu
Slide 27: III. Financial Forecast for Fiscal 2024
Ⅲ. Financial Forecast for Fiscal 2024 Copyright THK CO., LTD. 2024. All rights reserved.
Slide 28: Orders Received by Region (Industrial Machinery Business)
Orders Received by Region ＜Industrial Machinery Business＞ * exclude export THK CO., LTD. (Japan) % Change, Billions of YEN 40 28.9 (4.5) 30 (19.6) 7.7 22.7 (34.2) (43.7) (41.5) (32.7) (15.2) 20 32.6 30.8 27.4 22.6 10 18.4 18.0 18.5 19.2 19.8 22.1 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2022 20
Slide 29: Financial Forecast (Consolidated)
Financial Forecast (Consolidated) （Millions of Yen） 2024/12 2023/12 FY Forecast 1H Results Results Revenue 365,000 179,851 351,939 Y/Y +3.7％ -3.1％ -10.6％ Operating Income 27,000 8,399 23,707 Y/Y +13.9％ -49.0％ -31.2％ Income before income taxes 28,800 10,080 25,289 Y/Y +13.9％ -41.2％ -29.0％ Profit Attr
Slide 30: Financial Forecast (Unconsolidated)
Financial Forecast (Unconsolidated) Japanese GAAP（Millions of Yen） 2024/12 2023/12 FY Forecast 1H Results Results Net Sales 151,000 67,606 144,227 Y/Y +4.7％ -15.1％ -27.0％ Japan 98,000 42,415 89,121 Y/Y +10.0％ -11.9％ -24.2％ Operating Income 7,000 1,544 7,138 Y/Y -1.9％ -72.0％ -72.2％ Ordinary Income 11
Slide 31: Trends in COGS and SG&A
Trends in COGS and SG&A COGS 75.6% 78.2% 77.8% COGS ratio 74.0% 72.6% Sales-cost ratio increased by 2.2 points Y/Y ・Due to decrease revenue 138,092 150,305 140,300 139,975 130,008 Millions of Yen 1H 2H 1H 2H 1H 2022/12 2023/12 2024/12 SG&A 17.5% 18.0% SG&A ratio increased by 1.9 points Y/Y 15.4% 14.
Slide 32: Trends in Orders, Sales and Backlog (Japan – Unconsolidated)
【Support Statement】 － Trends in Orders, Sales and Backlog(Japan – Unconsolidated) – （millions of yen） 80,000 Orders Sales 70,000 Backlog 60,000 50,000 40,000 30,000 20,000 10,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9
Slide 33: Trends in Orders Classified by Industry (Unconsolidated)
【Support Statement】 （millions of yen） –Trends in Orders Classified by Industry (Unconsolidated)– 12,000 Machine Tool General Machinery 10,000 Electronics 8,000 6,000 4,000 2,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9