Slide 1: FY2022/12 Results Briefing
Tokyo Stock Exchange Prime Market 6143 FY2022/12 Results Briefing Sodick Co., Ltd. February 17, 2023
Slide 2: FY2022/12 Financial Results Summary
FY2022/12 Financial Results Summary 2
Slide 3: Financial Results Highlights
Financial Results Highlights Net sales increased due to the yen’s depreciation, but operating profit decreased due to higher costs. FY2022 Sales: 80.4 billion yen up 7.1% YoY OP: 5.8 billion yen down 14.7% YoY Although demand from semiconductor and electronic component Machine industries remained fi
Slide 4: Financial Results Highlights
Financial Results Highlights Despite a decrease in sales of machine tools and injection molding machines in Greater China, net sales increased from the previous fiscal year due to the positive effect of the weaker yen (the effect of the weaker yen increased by approx. 5.7 billion yen) Operating
Slide 5: Details of Changes in Operating Profit
Details of Changes in Operating Profit Operating profit decreased approx. 1 billion yen from the same period of the previous fiscal year due to a significant increase in personnel expenses resulting from an increase in hiring and salary revisions associated with the expansion of strategic human re
Slide 6: Ratio of Operating Profit to Net Sales (Quarterly)
Ratio of Operating Profit to Net Sales (Quarterly) OPM Net sales decreased due to the spread of the COVID-19. Sales of EDMs was Net sales have recovered in Greater China since March Recovery from a fall Decrease in operating sluggish owing to the and are showing a recovery due to COVID-19 profit mar
Slide 7: Financial Results by Segment
Financial Results by Segment FY2018 FY2019 FY2020 FY2021 FY2022 YoY (million yen) Change Machine tool 58,607 45,797 38,024 51,485 56,492 9.7% segment Industrial machinery 11,155 9,773 10,931 10,367 10,656 2.8% segment Food machinery 6,560 6,283 3,585 6,884 6,813 -1.0% segment Other segments 6,392 5,
Slide 8: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment ■ Machine Tool Segment Net sales (Quarterly changes) •Demand from electronic component, semiconductor, 20,000 and EV-related industries was strong in Japan, the West and Asia. 16,000 13,928 Net sales •Greater China’s appetite for facility investments in automotive and se
Slide 9: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment ■ Industrial Machinery Segment Net sales (Quarterly changes) 4,000 •Demand from EV-related and industries was brisk in 3,000 2,540 Japan. Net sales •Demand for electronic component industries in each region was weak. 2,000 •Net sales increased from the corresponding peri
Slide 10: Financial Results by Segment: Food Machinery Segment
Financial Results by Segment ■ Food Machinery Segment Net sales (Quarterly changes) 3,000 2,648 •Demand for noodle making machine-related equipment in Japan and sterile-packed cooked rice production systems for overseas markets was strong. 2,000 Net sales •Although facility investment appetite decli
Slide 11: Financial Results by Segment: Other Segments
Financial Results by Segment ■ Other Segments Net sales (Quarterly changes) 2,000 1,619 Net sales from the precision die and molding business 1,500 Net sales decreased slightly from the same period a year earlier due in part to supply chain disruptions. 1,000 Demand continued for ceramics for semico
Slide 12: Balance Sheet
Balance Sheet Cash and deposits decreased due to the transfer of cash and deposits to non-current assets (time deposits with maturity of more than one year) at subsidiary. Net assets increased due to an increase in foreign currency translation adjustments (FCTAs) due to the yen's depreciation (a
Slide 13: Cash Flow
Cash Flow FY2018 FY2019 FY2020 FY2021 FY2022 Major breakdowns Increase in contract liabilities: +3.2 billion yen Cash flow from operating activities 9,275 8,336 5,270 7,642 3,543 Decrease in advances received: -4.6 billion yen Increase in inventories: -5.1 billion yen Payments into time deposits: -6
Slide 14: Capital Investment, Depreciation, R&D Expenses
Capital Investment Depreciation R&D Expenses (million yen) Main contents of this term Capital 設備投資 investments 減価償却費 Depreciation Facility • Construction of a new plant at Amoy plant investments 8,576 in Xiamen • Expansion of the second plant in Thailand 6,561 • Expansion of Kaga Office 4,681 3,399
Slide 15: FY23/12 Full-year Financial Results Projections
FY23/12 Full-year Financial Results Projections 15
Slide 16: Changes in JMTBA Orders and EDM Orders
Changes in Amount of JMTBA Orders and in Number of EDMs Ordered from the Company JMTBA Machine Tool Orders (value) Sodick EDM Orders (units) (million yen) (units) Record-high monthly orders Increasing demand in (2021/3) China A fall due to the A decrease due 2008 financial to the spread of crisis th
Slide 17: Changes in Numbers of EDMs Ordered by Region
Changes in Numbers of EDMs Ordered in Quarters by Region The number of orders received from auto-related industries was North and Auto-related industries remained somewhat stagnant, while Europe on a recovery trend. Some manufacturers refrained from South America aerospace industries recovered inves
Slide 18: FY2023/12 Full-year Financial Results Projections
FY2023/12 Full-year Financial Results Projections Sales are expected to increase due to increased sales in the industrial machinery, food machinery and other businesses. On the profit side, operating profit decreased and the operating profit margin decreased to 5.8% due to the continued rise in
Slide 19: FY2023/12 Projections (by Segment)
FY2023/12 Full-year Financial Results Projections (by Segment) Machine tool: Sales of EDMs in Greater China declined, but sales increase of machining centers and 3D printers and expansion of after- sales business are expected. Revenues worsened as costs continued to rise, including increases in ra
Slide 20: Projections for Capital Investment / Depreciation / R&D Expenses
Projections for Capital Investment / Depreciation / R&D Expenses FY2023/12 plan (million yen) 5.3 billion yen (up approx. 0.7 billion yen YoY) 設備投資 Capital 減価償却費 Depreciation investment • Expansion of Food Machinery Plant in Kaga Office Capital • Construction of new office building at Sendai Sales O
Slide 21: Medium and Long-term Business Strategy
Medium and Long-term Business Strategy 21
Slide 22: Sodick's Vision
Sodick’s Vision Philosophy: Sodick Group, under the founding spirit of “Create,” “Implement,” and “Overcome Difficulties,” aims to provide the highest value to customers, and strives to contribute for a sustainable society as a company that “Create Your Future.” Our vision Contributing to a sustaina
Slide 23: Basic Management Policy
Basic Management Policy • Aim to achieve absolute superiority in product performance and quality Provide the highest • Enhance relationship with customers by using DX (Digital Transformation) value to our • Create and promote solution business • Enhance after-market service business customers • Brin
Slide 24: Long-term Management Plan, Next Stage 2026
Long-term management plan, Next Stage 2026~Toward Further Growth~ • Formulating a long-term vision targeting 2026, the year of our 50th anniversary • Targeting net sales of 125 billion yen with operating profit of 17 billion yen by FY2026/12 Product expansion period Next Stage 2026 We will formulate
Slide 25: Evolution of Manufacturing
Evolution of Manufacturing The scale of the high-end market has increased due to the sophistication of manufacturing. Traditional manufacturing Future manufacturing *Image diagram Sock’s target customer segment Example: EV conversion Engine car EV (electric vehicle) Impact on the Company Number of P
Slide 26: Medium-term Management Plan
Medium-term Management Plan External environment Medium-term management plan Net sales Operating Operating CASE 120,000 profit profit margin 15000 Machine 98,200 100,000 91,000 tools 80,495 81,700 DX 80,000 8,500 10000 60,000 6,700 Changes in social trends 5,813 Next-generation 40,000 4,700 8.7% 500
Slide 27: Machine Tool Segment
Machine Tool Segment From machinery manufacturing and sales Strengthening after-sales Product development to total solutions services Won the main award Sodick China South at the 65th Big 10 New Electrical discharge machines (EDMs) China Tech Center Product Awards Machining Metal 3D center printer S
Slide 28: Industrial Machinery Segment
Industrial Machinery Segment Expanding sales to high-precision and high- Expansion of accuracy molding fields in high-end markets production capacity Product development Vertical injection New Amoi plant in Revamped electric injection molding machine Xiamen molding machine model Horizontal Injection
Slide 29: Food Machinery Segment
Food Machinery Segment To be a global general food machinery manufacturer Establish the three pillars for noodles, rice and Expansion of production capacity Japanese-style deli dishes Expansion of plant in New Amoi plant in Xiamen Kaga Office Noodle Started operation in Scheduled for completion in J
Slide 30: Food Machinery Segment: Packed Rice Production Systems
Food Machinery Segment Increasing demand for packed rice production systems every year Annual production of packed rice (Japan) (1000 tons) 250 Japanese market 200 • Need for household stockpiling during disasters 150 • Sterile-packed rice attracts attention due to COVID-19 pandemic 100 50 0 To the
Slide 31: Our Efforts for Sustainability
Our Efforts for Sustainability Field Activities in FY22/12 Key themes for FY23/12 •Establishment of special environmental departments •Expressed our support for the TCFD proposal. •Disclosed climate-related financial information in •Promote environmental impact reduction E accordance with TCFD recom
Slide 32: Financial Policy
Financial Policy Items Capital efficiency Financial soundness Shareholder returns DOE of 2% or more, and Target ROE of 8% or more Net cash plus Total return ratio*1 of 40% or value (5-year average) Equity ratio of 50% or more more ROE (one year) Net cash Equity ratio DOE Total return ratio (million
Slide 33: Shareholder Returns
Shareholder Returns Basic Policy Dividend on equity ratio (DOE) 2% or more and total return ratio 40% or more ■Dividend trends ■Purchase / cancellation of treasury shares Up 2 yen Progress Details of the resolution (end of January) 30 Up to Total 2.5 million number of shares 1.41 million shares to (
Slide 34: Appendix
Appendix 1. Changes in Financial Results 2. Changes in Indexes 3. Changes in Financial Results by Segment 4. Numbers of EDMs Ordered and Sold 5. Ratio of Overseas Sales by Segment 6. Maintenance Service Ratio 7. Outline of Business, New products 8. Exhibition Information 34
Slide 35: Changes in Financial Results
Changes in Financial Results 1Q 2Q 3Q 4Q 1H 2H Full Year FY20/12 YoY YoY YoY YoY YoY YoY YoY Net sales 13,030 69.2% 13,671 98.4% 14,042 82.6% 17,285 96.7% 26,702 81.6% 31,327 89.8% 58,030 85.9% Cost of sales 8,957 73.5% 9,313 101.2% 9,615 81.2% 11,894 97.5% 18,270 85.4% 21,509 89.5% 39,779 87.6% Cos
Slide 36: Changes in Indexes
Changes in Indexes Number of employees (Persons) Jun. 17/09 17/12 18/06 18/12 19/06 19/12 20/06 20/12 21/06 21/12 22/12 2022 separate 690 701 743 755 801 841 869 886 914 924 987 1,087 consolidated 3,616 3,651 3,714 3,676 3,625 3,579 3,576 3,633 3,670 3,683 3,772 3,746 ＊Not including employee on loan
Slide 37: Changes in Financial Results by Segment
Changes in Financial Results by Segment 1Q 2Q 3Q 4Q 1H 2H Full Year FY20/12 YoY YoY YoY YoY YoY YoY YoY Net sales 8,238 61.7% 8,825 87.5% 9,254 83.7% 11,706 103.6% 17,063 72.8% 20,961 93.8% 38,024 83.0% Machine Tool Operating profit 197 9.0% 744 110.9% 733 104.6% 1,221 115.6% 941 32.9% 1,954 111.1%
Slide 38: Numbers of EDMs Ordered and Sold
Numbers of EDMs Ordered and Sold EDM Orders (Units） FY2020 FY2021 FY2022 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total North&South 56 28 59 82 225 58 70 54 68 250 81 58 56 83 278 America Europe 78 61 65 77 281 100 108 113 106 427 96 106 58 94 354 China 350 512 468 558 1,888
Slide 39: Ratio of Overseas Sales by Segment
Ratio of Overseas Sales by Segment North and South (million 35,000yen) Japan Europe Greater China Asia America 30,000 25,000 20,000 Others Food 15,000 machinery Industrial 10,000 machinery Machine tools 5,000 0 FY21 2021年 FY22 2022年 FY21 2021年 FY22 2022年 FY21 2021年 FY22 2022年 FY21 2021年 FY22 2022年 F
Slide 40: Maintenance Service Ratio
Maintenance Service Ratio Quarterly trends in maintenance services and Breakdown of machinery sales/maintenance service and consumables sales consumables （Million yen） Machine 3,000 FY2021/12 FY2022/12 Tool Maintenance 2,000 services and 10,213 19.8% 12,101 21.4% consumables 1,000 Machine sales 41,2
Slide 41: Outline of Business
Outline of Business Segment Machine tools Industrial machinery Food machinery Die-sinker EDM Horizontal injection molding Noodle-making equipment Wire-cut machine (Noodle production line) EDM Sterile-packed cooked rice production system Vertical injection Key Small Hole EDM Metal 3D Printer molding
Slide 42: New Products Released in 2022
New Products Released in 2022 Electrical discharge machines (EDMs) VN400Q AX350L AL i Groove VN600Q + Edition Won the main award at the 65th Big 10 New Product Awards Super-precision wire-cut EDM that meets the demand Dramatically improved discharge circuit and control Wire-cut EDM entry model revam
Slide 43: New Products Released in 2022
New Products Released in 2022 Machining center UX450L HP300L Revamped linear motor-driven machining center Simultaneous 5-axis control machining center Maximizes high-speed, high-precision, and high- Supports the production of various devices that grade drive performance require intelligent, high an
Slide 44: Exhibition Information
Exhibition Information Exhibited at JIMTOF2022 (the 31st Japan International Machine Tool Fair) Exhibited at JIMTOF, which was held for the first time in 4 years after being held online in 2020. Based on the concept of “Proposing technologies to support SDGs, DX, and Speed,” we set up two booths in
Slide 45: 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