Sumitomo Heavy Industries, Ltd. · TSE:6302

Sumitomo Heavy Industries — Q2 2024 Earnings Presentation

41 slides from Sumitomo Heavy Industries's earnings presentation, Aug 7, 2024

Slide 1: Financial Summary for Q2 FY2024 and Projections for FY2024
Financial Summary for Q2 FY2024 and Projections for FY2024 2024/8/7 President Shinji Shimomura Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 2: Index
2024/8/7 INDEX 01 Financial Summary for Q2 FY2024 02 Performance Forecast for FY2024 03 Progress of Medium-Term Management Plan 2026 (MTMP26) Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 2
Slide 4: Financial Summary for FY2024-2Q
2024/8/7 01 Financial Summary for FY2024-2Q Orders: JPY453.1 billion / 512.7 billion (59.5) billion Actual FY2024-2Q Net sales: JPY520.4 billion / 510.1 billion 10.3 billion /Same period of previous fiscal year (after adjustment), (change) Operating profit: JPY33.3 billion / 30.7 billion 2.7 billion
Slide 5: Financial Summary for FY2024-2Q
2024/8/7 01 Financial Summary for FY2024-2Q FY2023 FY2024 Change (1H FY2024 - Actual 1Q Actual 2Q Actual 1Q Actual 2Q Actual 1H Actual 1H 1H FY 2023) (Jan-Mar) (Apr-Jun) (Jan-Mar) (Apr-Jun) Unit: JPY billion Orders 260.0 252.7 512.7 221.1 232.0 453.1 (59.5) Net sales 248.2 261.8 510.1 254.8 265.5 52
Slide 6: Performance by Segment for FY2024-2Q
2024/8/7 01 Performance by Segment for FY2024-2Q Orders Net sales Operating profit 1H FY2023 1H FY2024 1H FY2023 1H FY2024 1H FY2023 1H FY2024 Actual Change Change Actual Change Actual Actual Actual Actual /Operating profit ratio /Operating profit ratio (%) Unit: JPY billion (%) Mechatronics 105.7 9
Slide 7: Analysis of Changes in Operating Profit for FY2024-2Q
2024/8/7 01 Analysis of Changes in Operating Profit for FY2024-2Q Unit: JPY billion 40 30 6.4 (4.5 ) 4.5 (3.8 ) 20 30.7 33.3 10 0 FY2023 Effect of sales Effect of Selling & FY2024 Others increases/decreases exchange rates administrative 1st Half 1st Half expenses <Effect of changes in sales by segme
Slide 8: Consolidated Balance Sheet
2024/8/7 01 Consolidated Balance Sheet December 2023 June 2024 Change Unit: JPY billion December 2023 June 2024 Change Unit: JPY billion Current Assets 748.3 779.7 31.4 Liabilities 573.4 589.4 16.0 Notes and accounts payable Cash and deposits 104.5 103.9 (0.6) - trade 180.8 170.0 (10.9) Notes and ac
Slide 9: Consolidated Cash Flows Statement
2024/8/7 01 Consolidated Cash Flows Statement Unit: JPY billion Item 1H FY2024 FY2019 FY2020 FY2021 FY2022 FY2023 1H FY2024 Operating Activities 11.7 Free cash flow (JPY billion) (21.5) 20.4 12.0 (15.9) 22.1 (12.1) Profit before income taxes 33.5 Debt repayment Depreciation & amortization 18.6 3.4 1
Slide 11: Performance Forecast for FY2024
2024/8/7 02 Performance Forecast for FY2024 Orders : JPY1,030.0 billion / 1,120.0 billion (90.0) billion Forecast FY2024 /Previous forecast (as of Net sales : JPY1,070.0 billion / 1,110.0 billion (40.0) billion February 2024), (change) Operating profit : JPY 65.0 billion / 70.0 billion (5.0) billion
Slide 12: Performance Forecast for FY2024
2024/8/7 02 Performance Forecast for FY2024 (Reference) Forecast FY2024 1H FY2023 1H FY2024 Actual FY2023 Forecast FY2024 Actual Actual (2023.1-2023.12) (As of February 2024) (As of August 2024) Unit: JPY billion (2023.1-2023.6) (2024.1-2024.6) (2024.1-2024.12) (2024.1-2024.12) Orders 512.7 453.1 1,
Slide 13: Analysis of Changes in Operating Profit for FY2023/2024
2024/8/7 02 Analysis of Changes in Operating Profit for FY2023/2024 Unit: JPY billion 80 （11.0 ） 6.0 60 (14.0 ) 9.6 40 74.4 65.0 20 0 FY2023 Actual Effect of changes Effect of Selling & FY2024 Forecast administrative Others FY2023 in sales exchange rates FY2024 expenses <Effect of sales increases by
Slide 14: FY2024 Business Environment Forecast
2024/8/7 02 FY2024 Business Environment Forecast Aug 2024 Product/sector Situation forecast In Japan, the order environment is expected to be on a gradual recovery trend. The Chinese market will also continue to be sluggish Gear reducers In Europe, a recovery is expected in the second half, although
Slide 15: Performance Forecast by Segment for FY2024
2024/8/7 02 Performance Forecast by Segment for FY2024 Orders Net sales Operating profit (Reference) (Reference) (Ref.) Forecast Forecast Forecast Forecast Actual Actual Forecast FY2024 Actual Forecast FY2024 FY2024 FY2024 FY2024 FY2024 1H FY2024 (As of February 2024) (As of August 2024) 1H FY2024 (
Slide 16: Mechatronics
2024/8/7 02 Mechatronics 1H FY2024: While the Japanese market for small-to-medium-sized gear reducers was strong, China continued to be sluggish. For motors and inverters, orders, sales and operating profit all decreased due to lower demand attributable to inventory adjustments by customers in Europ
Slide 17: Mechatronics <Reference>
2024/8/7 02 Mechatronics Orders Net sales Operating profit (left scale) Unit: JPY billion Profit ratio (right scale) 3-4Q 1-2Q <Reference> - Gear reducers Sales contribution ratio by model (approximate numbers) For use in Gear motor Gear box Electric precision Service Total (middle size) (large size
Slide 18: Industrial Machinery
2024/8/7 02 Industrial Machinery <Plastics machinery> 1H FY2024: Orders, sales and operating profit all decreased due to a slowdown in demand centering on electric and electronics-related products in China and continuing sluggish investment in Europe. FY2024 :Orders are expected to increase from the
Slide 19: Industrial Machinery
2024/8/7 02 Industrial Machinery Orders Net sales Operating profit (left scale) Unit: JPY billion Profit ratio (right scale) 3-4Q 1-2Q <Reference> - Sales mix of injection molding machines by segment (approximate numbers) - Business performance for semiconductor production equipment (ion implanters)
Slide 20: Logistics & Construction
2024/8/7 02 Logistics & Construction <Hydraulic excavators> 1H FY2024 : Orders decreased due partly to the absence of the previous fiscal year's surge in orders before the price revisions in Japan, and a decline in response to a significant number of advance orders in the U.S. during the previous fi
Slide 21: Logistics & Construction <Reference>
2024/8/7 02 Logistics & Construction Orders Net sales Operating profit (left scale) Unit: JPY billion Profit ratio (right scale) 3-4Q 1-2Q <Reference> - Hydraulic excavators: demand by region/changes in sales (approximate numbers) - Industrial cranes: order mix by segment (approximate numbers) Elect
Slide 22: Energy & Lifeline
2024/8/7 02 Energy & Lifeline 1H FY2024 : For energy plants, orders decreased due to a reduction in service projects in Europe. However, variations in the progress of construction work led to an increase in sales, and operating profit slightly declined due to an increase in development costs. For ot
Slide 23: Energy & Lifeline
2024/8/7 02 Energy & Lifeline Orders Net sales Operating profit (left scale) Unit: JPY billion Profit ratio (right scale) 3-4Q 1-2Q Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 23
Slide 24: Sales of the Semiconductor-Related Product Business
2024/8/7 02 Sales of the Semiconductor-Related Product Business Total sales from semiconductor related Products for the semi-conductor sector that we possess and their businesses (approximate numbers) key technologies Unit: JPY billion Key technologies Relevant Product Beam segment Ultracold Vacuum
Slide 26: Basic Policy and Key Framework of Medium-Term Management Plan 2026
2024/8/7 03 Basic Policy and Key Framework of “Medium-Term Management Plan 2026” Increase corporate value in a sustainable manner by solving social issues through products and services Concept of Build a business portfolio to solve social issues Lay groundwork for Bring the ideal state long-term Reg
Slide 27: Basic Strategy (Corporate Strategy) for MTMP26
2024/8/7 03 Basic Strategy (Corporate Strategy) for the Medium-Term Management Plan 2026 Corporate strategy An explanation regarding items marked with * is provided on pages 28 and 29 Strategy Implementation status in 1H of FY2024 - Promote business portfolio - The receipt of new shipbuilding orders
Slide 28: Strengthening New Business Exploration Functions
2024/8/7 03 *1. Corporate Strategy: Strengthening New Business Exploration Functions We have opened the Boston Office (Boston Office Co-Innovation Hub) to conduct research on advanced technologies and explore and develop new business opportunities The SHI-USA Boston Office has been opened in a locat
Slide 29: Strengthening the Business Base (Sustainability)
2024/8/7 03 *2. Corporate Strategy: Strengthening the Business Base (Sustainability) “Medium-Term By strengthening measures to achieve SDGs and the Group’s goal of achieving carbon Management Plan 2026” neutrality by 2050, as well as transforming risks associated with changes in the social Basic Sus
Slide 30: Basic Strategy (Segment Strategy) for MTMP26 (1)
2024/8/7 03 Basic Strategy (Segment Strategy) for the Medium-Term Management Plan 2026 (1) Segment strategy An explanation regarding items marked with * is provided on page 32 and onwards Segment Key investment Strategic direction Actual 1H FY2024 area Mechatronics Robotics/automati - In response to
Slide 31: Basic Strategy (Segment Strategy) for MTMP26 (2)
2024/8/7 03 Basic Strategy (Segment Strategy) for the Medium-Term Management Plan 2026 (2) Segment strategy An explanation regarding items marked with * is provided on page 32 and onwards Segment Key Strategic direction Actual 1H FY2024 investment area Logistics & Robotics/autom - Establish a develo
Slide 32: Mechatronics: Wall-climbing Robot
*3. Segment Strategy: 2024/8/7 03 Mechatronics (Robotics, Automation): Wall-climbing Robot Development of a practical type of wall-climbing robot and its key features We have developed a wheeled robot with excellent ability to travel over curved surfaces by magnetic adhesion in order to automate ope
Slide 33: Industrial Machinery (Semiconductor): Ion Implanters
*４. Segment Strategy: 2024/8/7 03 Industrial Machinery (Semiconductor) New equipment and functions are being developed for market launch in 2025 (1) New equipment Application Customer value Image sensor system (MC) Productivity improvement Logic system (MC) ︵ Image sensor system Memory, through mini
Slide 34: Logistics & Construction: SIRMS
*5. Segment Strategy: 2024/8/7 03 Logistics & Construction (Robotics, Automation) New product: SIRMS® (SHI-MH Integrated Remote Monitoring System), a supportive DX tool for improving productivity in the shipbuilding sector In the shipbuilding industry, where a reduction in man-hours directly leads t
Slide 35: Energy & Lifeline: Offshore Wind Power Project
2024/8/7 *6. Segment Strategy: 03 Energy & Lifeline (Environment/Energy) Launch of an offshore wind power business promotion project (March 2024) An offshore wind power business promotion project was launched to strengthen base structures for offshore wind power generation and related ship businesse
Slide 37: Changes in Financial Values (Consolidated)
2024/8/7 Ref. Changes in Financial Values (Consolidated) Orders Net sales Operating profit (left scale) Profit ratio (right scale) Unit: JPY billion Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 37
Slide 38: Segment Breakdown (Plastics Machinery and Hydraulic Excavators)
2024/8/7 Ref. Segment Breakdown (Plastics Machinery and Hydraulic Excavators) Unit: JPY billion Plastics machinery Hydraulic excavators 3-4Q 1-2Q Orders Net sales Orders Net sales Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 38
Slide 39: Capital Investment, R&D, Personnel, Forex Sensitivity
2024/8/7 Ref. Capital Investment, Depreciation Cost, Research & Development Cost, Personnel, Forex Sensitivity Research & development cost* 3-4Q Capital investment* Depreciation & amortization 1-2Q *Actuals are based on cash flow. Forecast is based on budget. *Actuals are based on P/L. Forecast is b
Slide 40: Sales by Regional Segment
2024/8/7 Ref. Sales by Regional Segment Actual 1H FY2024 (2024.1-2024.6) <Exchange rate: JPY154 per US dollar> North America Europe Asia China Others Overseas total Japan Total sales Unit: JPY billion (Excluding China) Mechatronics 21.3 22.8 10.2 6.9 8.2 69.4 31.6 101.0 (plastics machinery) 4.2 10.5
Slide 41: Forward-looking statements
2024/8/7 All forward-looking statements regarding the company’s future performance are based on information currently available to Sumitomo Heavy Industries and determined subjectively. Future performance is not guaranteed and all information related to future performance contained herein is subject

Sumitomo Heavy Industries — Q2 2024 Earnings Presentation on 6ix

Sumitomo Heavy Industries — Q2 2024 Earnings Presentation

Slide 1: Financial Summary for Q2 FY2024 and Projections for FY2024

Slide 2: Index

Slide 3: Financial Summary for Q2 FY2024

Slide 4: Financial Summary for FY2024-2Q

Slide 5: Financial Summary for FY2024-2Q

Slide 6: Performance by Segment for FY2024-2Q

Slide 7: Analysis of Changes in Operating Profit for FY2024-2Q

Slide 8: Consolidated Balance Sheet

Slide 9: Consolidated Cash Flows Statement

Slide 10: Performance Forecast for FY2024

Slide 11: Performance Forecast for FY2024

Slide 12: Performance Forecast for FY2024

Slide 13: Analysis of Changes in Operating Profit for FY2023/2024

Slide 14: FY2024 Business Environment Forecast

Slide 15: Performance Forecast by Segment for FY2024

Slide 16: Mechatronics

Slide 17: Mechatronics <Reference>

Slide 18: Industrial Machinery

Slide 19: Industrial Machinery

Slide 20: Logistics & Construction

Slide 21: Logistics & Construction <Reference>

Slide 22: Energy & Lifeline

Slide 23: Energy & Lifeline

Slide 24: Sales of the Semiconductor-Related Product Business

Slide 25: Progress of Medium-Term Management Plan 2026

Slide 26: Basic Policy and Key Framework of Medium-Term Management Plan 2026

Slide 27: Basic Strategy (Corporate Strategy) for MTMP26

Slide 28: Strengthening New Business Exploration Functions

Slide 29: Strengthening the Business Base (Sustainability)

Slide 30: Basic Strategy (Segment Strategy) for MTMP26 (1)

Slide 31: Basic Strategy (Segment Strategy) for MTMP26 (2)

Slide 32: Mechatronics: Wall-climbing Robot

Slide 33: Industrial Machinery (Semiconductor): Ion Implanters

Slide 34: Logistics & Construction: SIRMS

Slide 35: Energy & Lifeline: Offshore Wind Power Project

Slide 36: Reference Materials

Slide 37: Changes in Financial Values (Consolidated)

Slide 38: Segment Breakdown (Plastics Machinery and Hydraulic Excavators)

Slide 39: Capital Investment, R&D, Personnel, Forex Sensitivity

Slide 40: Sales by Regional Segment

Slide 41: Forward-looking statements