Giken Ltd. · TSE:6289
Giken — FY2020 Earnings Presentation
26 slides from Giken's earnings presentation, 2020
Slide 1: Financial Results Overview FY2020
Financial Results Overview FY2020 GIKEN LTD. 〈stock code : 6289 〉
Slide 2: Overview－Key Points
Overview－Key Points （１）Construction Machinery Segment ・ Buyer hesitation to increase capital investment commitments led to a decline in sales for key products such as Silent Piler for 400mm U-type sheet pile. Attributed to reduced bid success due to skilled construction labor shortages, uncertaintie
Slide 3: Overview－3 year Trend
Overview－3 year Trend Unit : Millions of yen FY2018 FY2019 FY2020 YoY YoY Net Sales 29,142 32,442 +11.3% 24,640 ▲24.0% Operating 5,977 6,689 +11.9% 2,498 ▲62.6% Profit Ordinary 6,069 6,761 +11.4% 2,792 ▲58.7% Profit Profit※ 4,151 4,571 +10.1% 1,400 ▲69.4% Earnings per 155.75 168.80 +8.4% 51.28 ▲69.6
Slide 4: Overview－Sales Result by Segment
Overview－Sales Result by Segment Unit : Millions of yen 35,000 32,442 ◇Machinery Segment 30,000 29,142 ▲8,046M JPY 8,803 Capital investment 24,640 25,000 8,125 +8.3% +2.8% caution due to socio- +244 economic uncertainties 20,000 around COVID-19 9,048 pandemic. 23,638 15,000 ▲34.0% ▲8,046 ◇Constructi
Slide 5: Overview－Sales Result Domestic and Offshore
Overview－Sales Result Domestic and Offshore 15.5% Unit : Millions of yen 40,000 16.0% ◇ Domestic Sales 13.9% ▲5,575M JPY 35,000 14.0% 32,442 Decline in Equipment 29,142 11.4% 30,000 5,044 12.0% sales. +25.0% ▲44.1% 4,036 24,640 ◇ Offshore Sales 25,000 10.0% 2,818 ▲2,226 ▲2,226M JPY 20,000 8.0% ・Drop
Slide 6: Overview－Operating Profit
Overview－Operating Profit Operating Machinery Unit : Millions of yen Profit Segment 6,689 Net Sales Operating Labor Depreciation Profit Cost of Sales Cost Expense Others ▲8,046 2,498 ▲194 +177 ▲147 +55 R&D Expenses +3,720 Construction Segment FY2019 Net Sales FY2020 +244 Gross Profit ▲4,081 SG&A ▲10
Slide 7: Overview－Operating Profit to Net Sales
Overview－Operating Profit to Net Sales Unit : Millions of yen 35,000 20.5% 20.6% 22.0% 19.7% 32,442 18.7% 20.0% 29,142 30,000 17.2% 18.0% 25,965 24,640 25,000 16.0% 22,017 14.0% 14.5% 20,000 18,824 12.0% 14,874 10.1% 10.0% 15,000 8.0% 10,000 6.0% 6,689 5,977 5,124 4.0% 4,111 5,000 3,233 2,159 2,498
Slide 8: Overview－Sales by Category, Machinery Segment (1)
Overview－Sales by Category, Machinery Segment (1) Unit : Millions of yen 25,000 23,638 Cautious approach 21,016 707 to capital 20,000 767 5,078 investment due to economic 4,914 15,592 uncertainties created by the 15,000 725 COVID-19 global pandemic led to 5,261 decline in product 10,000 sales 17,590
Slide 9: Overview－Sales by Category, Machinery Segment (2)
Overview－Sales by Category, Machinery Segment (2) Number of Users Unit： Company 520 508 506 User numbers remain constant 500 492 GM1 members increased 480 as at end August 2020 460 GM1 certified companies: 12 (+1) 440 GM2 certified companies: 5 (±0) 420 400 0 FY2018 FY2019 FY2020 9
Slide 10: Overview－Sales by Category, Machinery Segment (3)
Overview－Sales by Category, Machinery Segment (3) Sales by Product Categories Unit : Millions of yen 18,000 Others 15,912 16,000 • Older Models 13,969 1,159 • Auxiliary Equipment, others 14,000 831 1,112 1,108 Special Purpose Models 12,000 • Clear Piler 6,622 9,279 10,000 • Zero Piler 4,786 1,026 •
Slide 11: Overview－Sales by Region, Construction Segment
Overview－Sales by Region, Construction Segment Unit : Millions of yen 10,000 Domestic Sales increased 9,048 Increased use of Implant 8,803 9,000 methodologies for critical restoration 8,125 and disaster prevention & mitigation 1,552 works. 8,000 1,563 3,246 Levee constructions such as 7,000 861 re
Slide 12: Overview－Offshore Sales by Segment
Overview－Offshore Sales by Segment Offshore Sales Ratio by Region Unit : Millions of yen 6,000 5,044 Asia 5,000 15.8% Oceania 4,036 Africa 35.8% 4,000 10.8% North 3,246 1,563 2,818 America 3,000 Europe 15.8% 21.8% 2,000 1,552 2,473 1,000 1,797 1,265 0 FY2018 FY2019 FY2020 Machinery Construction 12
Slide 13: Overview－Consolidated Balance Sheet
Overview－Consolidated Balance Sheet Unit : Millions of yen Growth Trade notes and accounts receivable FY2019 FY2020 ▲4,749M JPY Comparison Finished goods Assets +3,429M JPY Current Assets 26,909 25,477 ▲1,432 Non-current Assets 24,553 24,231 ▲322 Intangible assets (mainly goodwill) Assets 51,463 49,
Slide 14: Overview－Consolidated Cash Flow Statement
Overview－Consolidated Cash Flow Statement Unit : Millions of yen Growth FY2019 FY2020 Comparison ◇CF from Operating Activities Growth Comparison ＋173M JPY CF from ・Increased due to the decline of trade notes Operating 3,090 3,263 173 and accounts receivable despite decline of Activities profit befor
Slide 15: Overview－Capital Investment Expense
Overview－Capital Investment Expense Unit : Millions of yen Kochi Head Office 10,000 South Bldg. 138 Kochi Factory No.3 384 Kanto Factory 548 Training Center 38 8,000 Almere Office Kochi Factory No.3 263 and Factory 40 Dormitory in Kansai 153 Kochi Factory No.2 230 Almere Office 6,000 4,946 Kochi Hea
Slide 16: Overview－Research and Development Expense
Overview－Research and Development Expense Unit : Millions of yen 1,000 3.0% 2.8% 2.5% 2.5% 2.5% 800 2.0% 600 1.5% 400 827 803 1.0% 625 200 0.5% 0 0.0% FY2018 FY2019 FY2020 R&D Ratio to Net Sales 16
Slide 17: Forecast FY2021
Forecast FY2021
Slide 18: Forecast－Consolidated Results
Forecast－Consolidated Results Unit : Millions of yen Forecast for FY2021 FY2020 1st half 2nd half Full year YoY Net sales 24,640 12,800 14,300 27,100 +10.0% Operating 2,498 1,300 1,850 3,150 +26.1% profit Ordinary 2,792 1,300 1,900 3,200 +14.6% profit Profit※ 1,400 800 1,300 2,100 +49.9% Earnings ¥5
Slide 19: Forecast－Key Points (1)
Forecast－Key Points (1) （１）Domestic Trend ◎ Increased adoption of Implant Method • Increased adoption of Implant methodologies centering on disaster prevention and mitigation measures, and aging social infrastructure • Societal expectations and needs for Implant method remain high ◎ Cautious approac
Slide 20: Forecast－Key Points (2)
Forecast－Key Points (2) （２） Offshore Trend ◎ Focus on ‘total package’ solutions and accelerate the take-up of Press-in methodologies globally • Innovation Partnership Quay Wall project with the city of Amsterdam in the Netherlands • Construction of new factory and office building completed in Almere
Slide 21: Forecast－Sales by Segment
Forecast－Sales by Segment Unit : Millions of yen 40,000 ◇ Machinery Segment 35,000 32,442 +2,803M JPY Projected increase in 30,000 8,803 27,100 machine sales led by 24,640 ▲3.8% ▲344 increased adoption of 25,000 +2.8% 8,704 the Implant Method both in Japan and 20,000 9,048 offshore. +2,803 15,000 +1
Slide 22: Forecast－Capital Investment and R&D Expense
Forecast－Capital Investment and R&D Expense ◎Capital Investment ◎Research and Depreciation Expense and Development Expense Unit : Millions of yen Unit : Millions of yen Almere Factory 640 Demonstration Facility 1,301 4,000 3.7% 3,336 1,200 4.0% 3,060 3,000 3.5% 2,317 1,000 1,708 1,901 1,817 2.5% 2.5
Slide 23: Forecast－Offshore Sales Trend
Forecast－Offshore Sales Trend Unit : Millions of yen 6,000 19.2% 20.0% 5,000 15.5% 15.0% 4,000 11.4% 3,000 10.0% 5,044 5,200 2,000 2,818 5.0% 1,000 0 0.0% FY2019 FY2020 FY2021 Offshore Ratio to Net Sales 23
Slide 24: Forecast－Outcomes Mid-Term Management Plan
Forecast－Outcomes Mid-Term Management Plan 【Net Sales】 【Operating Profit】 Mid-Term Mid-Term Unit : Millions of yen Unit : Millions of yen Management Plan Management Plan 35,000 8,000 32,442 29,142 6,689 30,000 25,965 27,100 5,977 24,640 6,000 25,000 22,017 5,124 20,000 4,111 4,000 15,000 3,150 2,498
Slide 25: Shareholder Return
Shareholder Return
Slide 26: Shareholder Return
Shareholder Return FY2020 FY2021（Forecast） End of Q2 … 35 yen（Result） End of Q2 … 35 yen Year-end … 35 yen（Forecast） Year-end … 35 yen Unit : Millions of yen 80 Yearend 70 68 70 70 Interim 60 60 Commemorative 30 34 35 35 30 40 34 20 17 20 30 34 35 35 17 20 0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021