Sodick Co., Ltd. · TSE:6143
Sodick — Q3 FY2019 Earnings Presentation
23 slides from Sodick's earnings presentation, Nov 13, 2019
Slide 1: 3Q FY19/12 Results Briefing
First Section of TSE 6143 3Q FY19/12 Results Briefing November 13, 2019 Sodick Co., Ltd.
Slide 2: Table of Contents
Table of Contents I. 3Q FY19/12 Financial Results Summary 3 II. FY19/12 Financial Results Projections 16 (Reference Materials) 22 2
Slide 3: I. 3Q FY19/12 Financial Results Summary
I. 3Q FY19/12 Financial Results Summary
Slide 4: Financial Results Highlights
Financial Results Highlights Owing mainly to the protracted US-China trade conflict, sales of EDMs plunged chiefly in China, our major customer market. As a result, net sales tumbled roughly 20%, year on year. On account of a lower plant utilization rate associated with a decrease in sales volum
Slide 5: Financial Results Highlights (Quarterly)
Financial Results Highlights (Quarterly) Although net sales increased in 3Q, gross profit dropped owing to a lower plant utilization rate associated with a decrease in sales volume, and operating income margin remained at a low level in 3Q. (million yen) FY19/12 QoQ change 1Q Income 2Q Income 3Q I
Slide 6: Operating income margin
Ratio of Operating Income to Net Sales (Quarterly) Net Sales ・Including sales of Chinese Continued to be stagnant because of Bar graph: Net sales subsidiaries during Jan-Mar lower EDM sales Line graph: Operating 2017 (approx. 3,500 million Operating income margin income margin yen) Deteriorated sign
Slide 7: Details of Changes in Operating Income
Details of Changes in Operating Income R&D expenses, advertisement expenses and some other expenses were up, while SG&A expenses were down. Meanwhile, operating income decreased 5,507 million yen, reflecting a significant drop in gross profit. Gross profit down (million yen) 6,887 Other SG&A Sales
Slide 8: Financial Results by Segment
Financial Results by Segment (million yen) Machine tool segment 3Q 3Q ■Overall YoY change FY18/12 FY19/12 Demand from smartphone and electronic component manufacturers continued declining owing to the prolonged Actual Actual (Amount) (Rate) negative impact of the US-China trade conflict. ● In additi
Slide 9: Financial Results by Segment (Quarterly)
Financial Results by Segment (Quarterly) Machine tool segment (million yen) ■China FY19/12 QoQ change Sluggish performance continued owing to the prolonged negative impact of the US-China trade friction. However, 1Q (Jan- 2Q (Apr- 3Q (Jul-Sep) sales increased from 2Q. Mar) Jun) Amount Rate ■Japan Ac
Slide 10: Net Sales by Segment
Net Sales by Segment Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services and consumables Maintenance services and consumables Machine tool sales Industrial machinery sales Food processing machinery sales (milli
Slide 11: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment Overseas sales ratio down to 59.8%, reflecting lower sales in China, Europe and Asia (million yen) North and South Japan Europe Greater China Asia America Others Food processing machinery Industrial machinery Machine tools 3Q FY18/12 3Q FY19/12 3Q FY18/12 3Q FY19/12
Slide 12: Balance Sheet
Balance Sheet Net interest-bearing debt totaled 5,352 million yen (down 625 million yen from the end of the previous fiscal year). Net assets decreased about 1,400 million yen, reflecting a reduction in the foreign currency translation adjustment resulting from the translation of capital and oth
Slide 13: 3Q FY19/12 Topics (New Products)
3Q FY19/12 Topics (New Products) 1 The first in the industry! Development of Cooling Holding Bin that directly controls the temperature of granular bodies We have developed Cooling Holding Bin for granular bodies, the first in the industry, that rapidly and uniformly cools granular materials such as
Slide 14: 3Q FY19/12 Topics (Exhibition Information)
3Q FY19/12 Topics (Exhibition Information) Participation in FOOMA JAPAN 2019 (International Exhibition of 3 Equipment and Technology for the Food Industry) We participated in FOOMA JAPAN, an international exhibition of food processing machinery, held at Tokyo Big Sight. Amid mounting concern over fo
Slide 15: 3Q FY19/12 Topics (New Tech Center and Sales Company)
3Q FY19/12 Topics (Establishment of New Tech Center and Sales Company) 5 Opening Ceremony of Tech Center in the U.K. We have established the Tech Center as part of a U.K. sales subsidiary Sodick Europe Ltd., our major operating base in Europe, and held an opening ceremony on site on July 10. The est
Slide 16: II. FY19/12 Financial Results Projections
ll. FY19/12 Financial Results Projections
Slide 17: Market Environment
Market Environment Japan: While customers remain cautious about capital spending amid the US-China trade disputes, we expect sustained demand due to the government subsidy programs and replacement demand. North America: Although there is a lull in demand in the automotive industry, capital inves
Slide 18: FY19/12 Financial Results Projections (Comparison with August)
FY19/12 Financial Results Projections (Comparison with the projections revised on August) Thanks mainly to solid performance of the machine tool segment and the other segments, net sales for the 1Q-3Q period grew steadily in line with the previously revised projection. Full-year net sales are expe
Slide 19: FY19/12 Financial Results Projections (Progress)
FY19/12 Financial Results Projections (Progress) (million yen) FY19/12 3Q FY19/12 Full-year FY18/12 Full-year Progress Revised toward projection Income Income Actual Income margin projection Actual (announced on margin margin Nov 13) Net sales 49,707 ― 67,000 - 74.2% 82,716 ― Operating income 2,746
Slide 20: FY19/12 Financial Results Projections by Segment
FY19/12 Financial Results Projections by Segment (million yen) FY18/12 Machine tool segment FY19/12 Full-year The business environment is expected Full-year Progress to remain cutthroat in each region due 3Q Actual projection toward Actual primarily to the prolonged negative (announced on projecti
Slide 21: Shareholder Return Policy and Dividend Projections
Shareholder Return Policy and Dividend Projections Dividend policy: Aims to achieve 2% or higher dividend on equity (DOE) ratio Annual dividend is forecast to be 25 yen per share for FY19/12 (interim: 12 yen; year-end: 13 yen) (yen) Dividend per share 1株当たり配当金 DOE 2.4% 2.5% 30 2.1% 2.1% 2.1% 2.0
Slide 22: (Reference Information) Domestic and Overseas Sites
(Reference Information) Domestic and Overseas Sites NEW NEW Sodick America Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant Corporation(San Jose) (Chicago) Software Co., Ltd. Head Office and Research and Technology Center NEW Sodick Europe Ltd. (U.K.) Fukui Plant Ｑ Sodick Deutschland GmbH Sodi
Slide 23: (Reference Information) Participation in Major Exhibitions
(Reference Information) Participation in Major Exhibitions The Company will participate in both domestic and international exhibitions, thereby engaging in proactive marketing Date Location Exhibition Notes Nov. 20-23 Thailand Bangkok METALEX THAILAND Dec. 5-8 Indonesia Jakarta Machine Tool Indone