Yushin Company · TSE:6482

Yushin — Yushin Precision Equipment — FY2019 2Q Earnings Presentation

29 slides from Yushin's earnings presentation, Nov 6, 2018

  1. Slide 1: FY2019 2Q Investors Presentation

    FY2019 2Q Investors Presentation November, 2018 This document contains some estimates of future business performance. Such references should not be taken to be a guarantee. Please note that future performance is subject to various risks and uncertainties, and goals and projections may vary due to ch

  2. Slide 2: Company Profile

    Company Profile Name: YUSHIN PRECISION EQUIPMENT CO., LTD. President: Mayumi Kotani Establishment: October, 1973 Capital: 1,985 million yen Number of employees: 689 (Consolidated, as of Sept. 30, 2018) Consolidated net sales: 20,878 million yen (FY2018) Securities code: 6482 (First Section of the TS

  3. Slide 3: Product Lineup (1)

    Product Lineup (1) Sales ratio Take-out Robots FRA series HSA series HST series <Traverse type> 73% <Traverse type> <Traverse type> 7,690 Million yen FY2018 2Q RC series YC series TSXA series <Traverse type> <Traverse type> <Side-entry type> SC series ATC series HOP series <Traverse type> <Traverse

  4. Slide 4: Product Lineup (2)

    Product Lineup (2) Sales ratio Custom-ordered Equipment 11% 1,197 Million yen Flexible In-mold system Gate cutting Palletizing robots module stocker system FY2018 2Q Sales ratio Parts and Maintenance service 16% 1,698 Million yen FY2018 2Q 4 Nov. 6, 2018

  5. Slide 5: Performance and Price of Take-out Robots

    Performance and Price of Take-out Robots Performance FRA HSA High-end TSXA HST RC High-cycle series YC High speed High stiffness Multi purpose SC Energy saving Traverse type <5-axis servo driven> For Asian market ATC Energy saving Traverse type HOP <1-axis servo driven> Swing type <Air driven> Price

  6. Slide 6: Company Strength

    Company Strength Accurate response to Customers’ request and offering Philosophy high-quality products & Policy Challenge to new business areas High-leveled ratio of overseas sales Global & Global sales and technical support network - largest in Worldwide the take-out robot industry Quick response i

  7. Slide 7: Results for FY2019 2Q and Forecast for FY2019

    Results for FY2019 2Q and Forecast for FY2019 FY2019 2Q FY2019 (forecast) Amount Ratio Change* Amount Ratio Change* Mil. Yen % % Mil. Yen % % Net Sales 10,586 100.0 8.7 22,000 100.0 5.4 Gross Profit 4,149 39.2 3.0 8,860 40.3 4.7 Operating Income 1,203 11.4 21.5 2,600 11.8 10.2 Ordinary Income 1,228

  8. Slide 8: Factor and Assumption

    Factor and Assumption FY2019 2Q FY2019 (forecast)  8.7% increase from the previous FY to 10,586 million yen a) Take-out robots sales increase by 3% Y/Y ・Take-out robots sales increased by 6.2% Y/Y - Expand sales of FRA series -strong sales in Japan, Southeast Asia and - Expect demands in Asia and J

  9. Slide 9: Sales Breakdown (Half-yearly)

    Sales Breakdown (Half-yearly) (Millions of Yen) 12,000 12,000 11,414 11,229 11,134 10,397 10,586 Parts and 9,919 9,743 Maintenance service 10,000 10,000 8,949 Custom-ordered Equipment 8,000 8,000 6,000 6,000 Take-out Robots 4,000 4,000 2,000 2,000 00 FY2019 ’19/3 ’19/3 (Full) ‘15/9 15/9 ‘16/3 16/3 ‘

  10. Slide 10: Sales by Region (Half-yearly)

    Sales by Region (Half-yearly) (Millions of yen) 12,000 12,000 11,229 11,414 11,134 Others 10,397 10,586 9,919 9,743 North America 10,000 10,000 8,949 Europe 8,000 8,000 Other Asia 6,000 6,000 China/Taiwan 4,000 4,000 Japan 2,000 2,000 00 ’19/3 19/3 ’19/3 (Full) ‘15/9 15/9 ‘16/3 16/3 ‘16/9 16/9 ‘17/3

  11. Slide 11: Sales by End User Categories (Half-yearly)

    Sales by End User Categories (Half-yearly) 12,000 (Millions of yen) 11,414 12,000 11,134 11,229 10,397 10,586 Others 9,919 Optical instruments 9,743 10,000 10,000 Containers 8,949 Sundry products 8,000 8,000 Medical products Electrical appliance 6,000 6,000 Electronic parts 4,000 4,000 2,000 2,000 A

  12. Slide 12: Sales by End User Categories

    Sales by End User Categories Others 3% Disc and optical instruments 4% Containers 9% Automotive products Sundry 32% products 9% Medical products 10% Electronic Electrical parts appliance 18% 15% FY2018 2Q Net sales 10,586 million yen 12 Nov. 6, 2018

  13. Slide 13: Change in Performance

    Change in Performance Sales Ordinary Income (Millions of yen) (Millions of yen) 25,000 25,000 10,000 10,000 Sales Ordinary Income 22,000 9,000 9,000 21,148 20,878 19,346 20,000 19,272 20,000 8,000 8,000 17,909 17,799 7,000 7,000 14,721 15,000 15,000 14,240 6,000 6,000 12,369 12,567 5,000 5,000 10,00

  14. Slide 14: Global Network

    Global Network Canada<Toronto> Netherlands<Ede> South Korea UK<Birmingham> China<Tianjin, Yantai, Dalian> <Soul> South Korea USA<Ohio> <Daegu> China<Shanghai> USA<California> USA USA<Texas> <Rhode Island> China<Chongqing, Wuhan, Suzhou> Japan USA Spain<Valencia> Turkey<Istanbul> China<Guangzhou> <No

  15. Slide 15: Change in Performance of Subsidiaries

    Change in Performance of Subsidiaries (Millions of yen) Invest FY2017 FY2018 FY2019 (Budget) Country Setup ment Operating Net Operating Net Operating Net Sales Sales Sales ratio income income income income income income South Korea 2000.10 100.0% 1,788 202 166) 1,615 213 164) 1,760 162 126) China 20

  16. Slide 16: Balance Sheets

    Balance Sheets <Assets> (Millions of yen) <Liabilities, Net Assets> (Millions of yen) 35,000 35,000 Investments and other assets Notes and accounts 30,000 30,000 payable - trade Intangible assets 25,000 25,000 Other Property, plant and equipment 20,000 20,000 Non-current liabilities Other 15,000 15,

  17. Slide 17: Capital Investment / Depreciation / R&D

    Capital Investment / Depreciation / R&D (Millions of yen) Investment Capital Invest Depreciation Depreciation R&DExpenses R&D Expenses 5,000 5,000 Construction for new HQ 4,000 4,000 and factory December, 2015 3,000 3,000 Land acquisition for construction of new HQ and factory July, 2013 2,000 2,000

  18. Slide 18: Change in Cash Flow

    Change in Cash Flow (Millions of yen) 3,000 3,000 Free CF = Operating CF + Investing CF 14/3 1,847 2,000 2,000 1,469 1,153 1,000 1,000 186 00 -1,000 -1,000 -1,288 -2,000 -2,000 -2,887 -3,000 -3,000 FY2019 FY2014 14/3 FY2015 15/3 FY2016 16/3 FY2017 17/3 FY2018 18/3 19/3(予) (forecast) <Change in cash

  19. Slide 19: Medium-term Objectives

    Medium-term Objectives  Net Sales: 30 billion yen or more  Ordinary Income: 5 billion yen or more FY2018  Ordinary Profit ratio: 15 % or more  EPS: 75 yen or more  Net Sales: 20.8 billion yen (After 1:2 split)  Ordinary Income: 2.4 billion yen  Ordinary Profit ratio: 11.6 %  EPS: 93 yen (Bef

  20. Slide 20: Strategy 1: Enhancement of the Products (1)

    Strategy 1: Enhancement of the Products (1) NEW Products : “FRA” Series  International safety standard compliance  Active vibration control  “INTU LINE” – Yushin’s IoT service  New controller based on ergonomic design Released in July, 2017 20 Nov. 6, 2018

  21. Slide 21: Strategy 1: Enhancement of the Products (2)

    Strategy 1: Enhancement of the Products (2) Upgraded “INTU LINE” – Yushin’s IoT service  Connecting with other companies’ equipment in the plastic industry to realize factory “visualization“ As of October, 2018 21 Nov. 6, 2018

  22. Slide 22: Strategy 1: Enhancement of the Products (3)

    Strategy 1: Enhancement of the Products (3) Improve efficiency of technical service by utilizing AI and increase quality of technical service <Detecting the error> <Estimating root cause> Yushin FSE recognized AI engine estimates the abnormality of the robot possible cause based on actual repair dat

  23. Slide 23: Strategy 1: Enhancement of the Products (4)

    Strategy 1: Enhancement of the Products (4) Predictive Maintenance by FRA (to be released) <Detecting small changes> <Estimating predictor> Constant self-diagnosis finds AI engine estimates predictor any changes based on actual data base Detected information Predictive maintenance information 23 Nov

  24. Slide 24: Strategy 1: Enhancement of the Products (5)

    Strategy 1: Enhancement of the Products (5) Renewal of WEB Parts Shop Released in April 2018  Expansion of Parts sales by “Attachment automatic design tool” that enable customers to improve their convenience  Reduce manual work from order to shipment 24 Nov. 6, 2018

  25. Slide 25: Strategy 2: Enhancement of the Global Network

    Strategy 2: Enhancement of the Global Network  Target on the top class companies in the world  Win local customers in each counties  Increase YUSHIN brand recognition  Actively recruit world-class human resources 25 Nov. 6, 2018

  26. Slide 26: Strategy 3: Cultivation of Human Resources

    Strategy 3: Cultivation of Human Resources  Cultivation of System Integrator to accommodate various automation needs  A wide variety of training High level technical training program, Training program for managers, International training program for staffs  Promoting female powers 26 Nov. 6, 2018

  27. Slide 27: ESG

    ESG  Continued development of energy-saving products  Improvement of working environment – Working support term, System of maternity leave and shorter working hours (more than statutory)  Enhancement of the board of directors – Revitalization by outside Director/Auditor, Improvement by effectiven

  28. Slide 28: Return to Shareholders

    Return to Shareholders (Millions of yen) (%) 1,000 1,000 100 100 Ordinarydividend Ordinary dividend Commemorate Commemorate dividend dividend Dividend Dividend payout payout ratio ratio Consolidated dividend payout ratio target: 800 800 30% or more 80 080 40th year commemorate dividend 600 600 60 06

  29. Slide 29: Contact: Corporate Planning Department

    Contact: Corporate Planning Department (E-mail) irinfo@kyo.ype.co.jp www.ype.co.jp/en/ Notes: This document contains some estimates of future business performance. Such references should not be taken to be a guarantee. Please note that future performance is subject to various risks and uncertainties

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