Hosokawa Micron Corporation · TSE:6277

Hosokawa Micron — FY2016 Earnings Presentation

23 slides from Hosokawa Micron's earnings presentation, Nov 30, 2016

  1. Slide 1: Financial Results FY2016 & Business Plan FY2017

    Hosokawa Micron Group Financial Results FY2016 & Business Plan FY2017 （at the Securities Analysts Association of Japan） Nov. 30th 2016 http://www.hosokawamicron.com

  2. Slide 2: Financial Results (consolidated)

    １ Financial Results (consolidated) FY2015 (consolidated) (million yen) FY2015 FY2016 % of actual per sales actual per sales plan pre. year Booking 50,204 46,959 93.5% Backlog 17,539 17,459 99.5% Sales 47,342 44,664 45,500 94.3% Ope. Profit 2,450 5.2% 3,657 8.2% 3,100 149.3% PTI 2,646 5.6% 3,718 8.3%

  3. Slide 3: Financial Results (consolidated): sales and ratios

    ２ Financial Results (consolidated) Sales(1stH) Sales(2ndH） GPR SGA Ratio Ope. Profit Ratio 40% 36.7% 800 35.9% 34.8% 34.1% 34.4% 35% 35.70% 700 ＧＰR, SGA Ratio, Ope.Profit Ratio（ %） ） 29.1% 30% 27.3% 27.1% 29.3% 600 26.3% （ million yen） ） 27.47% 25% 449 485 473 450 500 446 406 20% 400 Sales（ 361 262

  4. Slide 4: Financial Results (consolidated): booking, sales, backlog

    ３ Financial Results (consolidated) ※exclude the impact of exchange rate fluctuations 240 50 Backlog Booking Sales Ope.Profit 220 45 Booking, Sales, Backlog（100million yen） 200 40 180 35 Lehman Shock Ope.Profit（100million yen） 160 30 140 25 120 20 100 15 80 10 60 5 40 0 20 (5) 0 (10) 1 Qtr. 2 Qtr. 3

  5. Slide 5: Financial Results (by business segments, consolidated)

    ４ Financial Results (by business segments, consolidated) 【Sales】 (million yen) FY2015 FY2016 % of actual actual Pre.Year Powder 33,478 33,251 99.3% Blown Film 11,503 11,413 99.2% Confectionary 2,359 － Total 47,342 44,664 94.3% US$ 119.30 111.89 Euro 136.84 124.11 【Ope.Profit】 (million yen) FY2015 FY

  6. Slide 6: Powder Processing results

    ５ Financial Results (consolidated) ＜Powder Processing＞ ：74.4％ Powder Sales Ratio： ％ Booking, Sales, Backlog 2ndH Ope.Profit 400 Ope.Profit, Ope.Profit Ratio 1stH Ope.Profit Booking, Sales, Backlog 1stH 2ndH Backlog Ope.Profit Ratio 350 50 15% （100 million yen） Ope.Profit（100 million yen） Ope.Profit

  7. Slide 7: Blown Film results

    ６ Financial Results (consolidated) ＜Blown Film＞ ：25.6％ Blown Film Sales Ratio： ％ 2ndH Ope.Profit Booking, Sales, Backlog Ope.Profit, Ope.Profit Ratio 1stH Ope.Profit Booking, Sales, Backlog（100 million yen） Ope.Profit Ratio 1stH 2ndH Backlog 140 16 16% Ope.Profit（100 million yen） 120 14 14% Ope.Prof

  8. Slide 8: Blown Film Business jumped up

    ７ Blown Film Business jumped up

  9. Slide 9: Financial Results (by business segment)

    ８ Financial Results（ Results（by business segment） segment） （ 100 million yen） yen ） Booking （ 100 million yen） yen） Backlog 600 200 Confectionery Confectionery Blown Film Blown Film Powder Processing Powder Processing 500 24 14 36 39 6 40 150 5 19 23 12 6 9 52 56 21 22 78 66 125 127 400 99 18 19 71

  10. Slide 10: Sales (Destination base, consolidated)

    ９ Sales (Destination base, consolidated） consolidated） (million yen) % on FY2015 FY2016 Pre.Year Japan Sales 10,756 11,646 108.3% % 22.7% 26.1% America Sales 10,498 10,287 98.0% % 22.2% 23.0% Europe Sales 17,771 14,700 82.7% % 37.5% 32.9% Asia& Sales 8,316 8,029 96.5% Others % 17.6% 18.0% Total Sale

  11. Slide 11: Bookings by Market Segments (consolidated)

    １０ Bookings by Market Segments （consolidated） consolidated） FY2016 FY2015 FY2014

  12. Slide 12: R&D, Capital Investment and Depreciation (consolidated)

    １１ R&D, Capital Investment and Depreciation (consolidated) (million yen) 3000 R & D Cost Capital Investment 2,441 2500 Depreciation Cost 2000 1,757 1,741 1500 1,284 1,303 1,147 1,175 1,120 935 995 983 1000 881 845 916 893 739 835 783 834 730 670 500 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

  13. Slide 13: Financial Results (non-consolidated)

    １２ Financial Results (non- (non-consolidated) (million yen) FY2015 FY2016 % of actual actual pre. Year Backlog 3,523 4,364 Booking 12,119 12,292 101.4% Sales 11,278 12,511 110.9% Gross Margin 4,667 5,321 114.0% (%) 41.4% 42.5% Ope. Profit 597 1,268 212.4% (%) 5.3% 10.1%

  14. Slide 14: Financial Results (non-consolidated): GPR, SGA

    １３ Financial Results (non- (non-consolidated) Sales(1stH) Sales(2ndH plan） GPR SGA Ratio Ope. Profit Ratio 41.5% 200 41.2% 41.4% （%） ） 38.9% 39.2% 42.5% 38.3% 40% ratio（ 、Ope. Profit ratio 36.4% 36.1% 155 36.2% 31.9% 31.9% 150 Sales (million yen) 32.4% 30% 133 28.2% 132 125 117 113 107 Ratio、 SGA Ra

  15. Slide 15: ROE (Return on Equity, consolidated)

    １４ ROE (Return on Equity, consolidated) 16% ） （連結） 14% 12% 11.0% 9.7% 10% 8.5% 8.6% 8.6% 8% 6% 4% 2% 0% FY2012 FY2013 FY2014 FY2015 FY2016

  16. Slide 16: Business Plan FY2017 (consolidated)

    １５ Business Plan FY2017 (consolidated) (100 million yen) FY2015 FY2016 FY2016 FY2017 Actual Plan Actual Plan Sales 473 485 447 450 Ope. Profit 25 30 37 38 （% per sales） 5.2% 6.2% 8.2% 8.3% Ext. Income 26 30 37 38 （% per sales） 5.6% 6.2% 8.3% 8.3% Net Income 25 20 25 26 （% per sales） 5.3% 4.1% 5.7% 5

  17. Slide 17: Strategies for FY2017

    １６ Strategies for FY2017 ◆ Development of new product and technologies to create competitive advantages and high profitability ◆ Expansion of our global reach to emerging markets ◆ Marketing group products which meet the needs of booming market ◆ Enhancement of mutual understanding and personnel exc

  18. Slide 18: Focus measures for FY2017: new products & technologies

    １７ Focus measures for FY2017 ◆New products & technologies development Competitive advantage Profitability improvement Booming market ＝ LIB cathode material, Magnetic material Recent New products ★ NOB-VC (Dry particle composing for mass production) ★ ACM-BC (Fine grinding for the cathode material) ★

  19. Slide 19: Focus measures for FY2017: export ratio

    １８ Focus measures for FY2017 【Export ratio of the domestic business】 (million) 25% 30 Amount Ratio 19.2% 19.3% 25 20% 18.4% 17.9% 16.7% 14.8% 16.2% 14.4% 20 15% 11.3% 12.1% 15 10% 10 5% 5 0% 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 （Plan） ◆Hot market => Magnetic materi

  20. Slide 20: Focus measures for FY2017: after sales business

    １９ Focus measures for FY2017 ◆Developing country （China, South-eastern Asia, etc.） ⇒ Expansion of After Sales business 【The export ratio from Japan at the After sales business】 Ratio 10% 9.0% 9.0% 9% 8.2 8. 2% 7.8% 8% 7% 6 . 6% To 6.0% 6% 4.9% Japanese-affiliated companies 5% + 4% 2.8% 2.9% Local co

  21. Slide 21: Focus measures for FY2017: activity markets

    ２０ Focus measures for FY2017 ◆Concentrate to the activity markets ⇒ Sharing of the Asian market information and Sales strategies ◎Keystone of the growth and profitability ・Secondary Battery materials and Magnetic materials ⇒ focus in China New products = Specialized equipment for LIB, Neodymium magn

  22. Slide 22: Dividend & Payout Ratio

    ２１ Dividend & Payout Ratio （yen） year-end 20.0 interim 70.0% payout ratio 18.0 17.5yen 60.0% 16.0 1 5yen 1 5yen 14.0 50.0% 12yen 12 yen Payout Ratio 7.5 10 Dividend 12.0 7.5 40.0% 10.0 9 yen 6.0 30.0% 8.0 7 yen 5.0 6.0 5 yen 5 yen 20.0% 4.0 3.0 3.0 4.5 7.5 7.5 7.5 6.0 10.0% 2.0 4.0 2.0 2.0 2.5 0.0 0

  23. Slide 23: Influence of the world economic topics

    ２２ Influence of the world economic topics ＜ Brexit (June, 2016） ＞ There is no big influence. Business situation of British subsidiary is keeping good stably. ＜ American presidential election (November 8, 2016) ＞ ● America first Using priority for American products ⇒ Anxiety of an exclusive trade pol

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