Sumitomo Heavy Industries, Ltd. · TSE:6302

Sumitomo Heavy Industries — FY2020 Earnings Presentation

38 slides from Sumitomo Heavy Industries's earnings presentation, May 2021

Slide 1: Financial Summary for FY2020 and Projections for FY2021
Financial Summary for FY2020 and Projections for FY2021 “Medium-Term Management Plan 2023” May 2021 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 4: Financial Summary for FY2020
May 2021 01 Financial Summary for FY2020 ■ Main Points Unit: JPY billion (1) Orders FY2019 FY2020 Change - Decreased for all segments excluding Environmental Facilities & Plants. Orders 826.2 813.9 (12.4) - Precision Machinery in particular recorded a significant decrease. - This is because the COVI
Slide 5: Operating Profit by Segment
May 2021 01 Operating Profit by Segment Unit: JPY billion ■Comparison with Previous Fiscal Year FY2019 FY2020 Change ＜Machinery components＞ - The COVID-19 pandemic dampened demand, Machinery leading to reduced sales and profit. Components 5.5 2.2 (3.3) ＜Precision machinery＞ - For plastics machinery,
Slide 6: Analysis of Changes in Operating profit
May 2021 01 Analysis of Changes in Operating profit Unit: JPY billion 57.5 55.0 Selling & (7.0) administrative expenses 52.5 (0.8) 56.8 (3.4) Others 50.0 Effect of sales (1.0) decreases Effect of exchange rates 51.3 47.5 45.0 FY2019 FY2020 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reser
Slide 7: Consolidated Balance Sheet
May 2021 01 Consolidated Balance Sheet Unit: JPY billion March March Change March 2020 March 2021 Change 2020 2021 Current Assets 592.8 613.6 20.8 Liabilities 518.5 525.8 7.3 Cash and deposits 87.1 99.5 12.5 Notes and accounts 158.5 160.3 1.8 payable - trade Notes and accounts receivable 271.4 282.9
Slide 8: Consolidated Cash Flow Statement
May 2021 01 Consolidated Cash Flow Statement ■ Working capital decreased, improving operating cash flows ■ Despite continuation of high-level investments, FCF increased by JPY20.4 billion Unit: JPY billion Category FY2019 FY2020 Change Operating Activities 36.3 64.1 27.9 Profit before income taxes 5
Slide 9: Performance Forecast for FY2021
May 2021 01 Performance Forecast for FY2021 ■ Sales increased from the previous fiscal year with profit remaining unchanged. ■ The annual dividends forecast is JPY70 with 32% of dividend payout ratio. Unit: JPY billion Actual FY2019 Actual FY2020 Forecast FY2021 Orders 826.2 813.9 880.0 Net Sales 86
Slide 10: Change in Fiscal Year-End
May 2021 01 Change in Fiscal Year-End The fiscal year-end (the last day of the financial year) will be changed, subject to approval of the “Partial Amendment of the Articles of Incorporation” at the 126th Ordinary General Meeting of Shareholders to be held in June 2022. ⚫ As the globalization of bus
Slide 12: Overseas Sales by Regional Segment
May 2021 Ref. Overseas Sales by Regional Segment Unit: JPY billion * currency exchange rate (US dollars) FY2019: ¥108 FY2020: ¥106 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 12
Slide 14: From Medium-Term Management Plan 2019 to Plan 2023
May 2021 From Medium-Term Management Plan 2019 02 to Medium-Term Management Plan 2023 <Changes in external Medium-Term Medium-Term environment> Management Plan 2019 Management Plan 2023 ✓ Rapid progress in ESG movement ✓ Dispute between the US and China Enhance corporate value in a Execution of corp
Slide 15: Basic Policy for the Medium-Term Management Plan 2023
May 2021 02 Basic Policy for the Medium-Term Management Plan 2023 2030: Social issues to be solved; ideal state of the Sumitomo Heavy Industries (SHI) Group Contribution to society through Realization of sustainable SHI Group promotion of CSV (Enhancement of corporate value) (Enhancement of social v
Slide 16: Long-term Objective
May 2021 Positioning of the Medium-Term Management Plan 2023: 02 Starting point of reformation Medium-Term Management Plan 2023 2024 to 2029 2030 2021 to 2023 Long-term objective Enhance corporate value in a sustainable manner by solving social issues through products and services Lay the Objective
Slide 17: Continuation of ROIC Management
May 2021 Medium-Term Management Plan 2023: 02 Continuation of ROIC Management Continue the ROIC management to meet the expectations of all stakeholders and enhance corporate value in a sustainable manner. ➢ Endeavor to improve financial performance by promoting the ROIC management - Ensure a suffici
Slide 18: Financial Targets of the Medium-Term Management Plan 23
May 2021 02 Financial Targets of the Medium-Term Management Plan 2023 ◼ Financial targets Unit: JPY billion Actual FY2020 Forecast FY2021 FY2023 Target Orders 813.9 880.0 1000.0 Net Sales 849.1 870.0 970.0 Operating Profit 51.3 50.0 70.0 Operating Profit Ratio 6.0％ 5.7% 7.2% ROIC 6.1％ 5.6％ 7.5％ Exch
Slide 19: Points for Formulation of the Medium-Term Management Plan 2023
May 2021 02 Points for Formulation of the Medium-Term Management Plan 2023 (i) Aim to strike a “balance between corporate value and social value” ✓ Focus on provision of not only financial value but also ESG-based value ✓ Adopt a CSV approach to solving social issues through corporate activities (ii
Slide 20: Social Issues Identified from the Viewpoint of MegaTrends
May 2021 Social Issues Identified from the Viewpoint of MegaTrends 02 and the Group’s Technologies ✓Rapid urbanization ✓Climate changes/Resource scarcity ✓Change in demographic structure Megatrends ✓Shift of economic powers ✓ Evolution of technologies ✓Information network revolution Source: PwC Japa
Slide 21: Targeted Development Areas in the Medium-Term Management Plan 2023
May 2021 Targeted Development Areas in the Medium-Term 02 Management Plan 2023 Targeted area Development target Develop environmental conservation technologies necessary Environment for sustainable industries (Waste water/waste treatment technologies) Develop futuristic technologies towards a decarb
Slide 22: Efforts to Promote Sustainability
May 2021 02 Efforts to Promote Sustainability Medium-Term Management Plan 2019 Medium-Term Management Plan 2023 & FY2020 (2017 to 2020) (2021 to 2023) 2024 to 2030 Aim to strike a “balance between corporate value and social value” and promote the following actions: ✓ Solve social issues through prod
Slide 23: Reviewing the Business Portfolio
May 2021 02 Reviewing the Business Portfolio Conventional Medium-Term Management Medium-Term Management Plan 2023: Take on Plan: Focus on quality challenges to maximize value <Certain achievements under a business (i) Enhance and pursue the exploration department system> capabilities - Clarifying ea
Slide 24: New Segments and Business Exploration Direction
May 2021 02 New Segments and Business Exploration Direction Mechatronics Industrial Robotics Application based Machinery on cutting-edge actuators physics Responding to climate changes Improving convenience Advanced material Drive solutions Improving labor through application of processing productiv
Slide 25: Model Configuration of New Segments
May 2021 02 Model Configuration of New Segments [Currently published segments] [Segments published after revision] Segment name Product Segment name Product Machinery Power transmission & control Power transmission & control equipment, Components equipment, motors, inverters Mechatronics motors, inv
Slide 26: Orders, Sales and Operating Profit by New Segment
May 2021 02 Orders, Sales and Operating Profit by New Segment Mechatronics Industrial Machinery Logistics & Energy & Lifeline Others Consturuction Orders Net Sales Operating Profit JPY billion JPY billion JPY billion Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 26
Slide 27: Mechatronics Segment
May 2021 02 Mechatronics Segment Circumstances in FY2021 Direction until FY2023 Recovery from the COVID-19 pandemic has ✓ Drive growth of the motion control prompted a global economic upturn. device business Both orders and sales are expected to ✓ Launch a drive solution business increase from the p
Slide 28: Industrial Machinery Segment
May 2021 02 Industrial Machinery Segment Circumstances in FY2021 Direction until FY2023 <Plastics machinery> ＜Plastics machinery> Both orders and sales are projected to increase from the ✓ Promote development of environmentally-friendly previous fiscal year because demand from the electric and techn
Slide 29: Logistics & Construction Segment
May 2021 02 Logistics & Construction Segment Circumstances in FY2021 Direction until FY2023 <Hydraulic excavators> <Hydraulic excavators> Both orders and sales are projected to increase from the ✓ Develop electric excavators previous fiscal year because Japanese and Chinese ✓ Develop advanced ICT co
Slide 30: Energy & Lifelines Segment
May 2021 02 Energy & Lifelines Segment Circumstances in FY2021 Direction until FY2023 ✓ Promote commercialization of Liquid Air Energy Storage (LAES), etc. in the renewable energy The market is generally on a recovery trend but in the market energy plant business, orders are expected to ✓ Develop re
Slide 31: Segment Re-configuration
May 2021 Ref. Segment Re-configuration Sales for FY2020 (JPY849.1 billion) JPY billion 800 Mechatronics Machinery Components 122.2 133.4 (power transmission and control (power transmission and control equipment) equipment, etc.) 700 Precision Machinery (injection molding machines, 176.9 Industrial M
Slide 32: Former Segment: Machinery Components
May 2021 Ref. <Former Segment> Machinery Components FY2020: Orders, sales and operating profit all decreased as the impact of spread of COVID-19 infections was seen all around the world. Orders Net Sales Operating Profit Unit: JPY billion Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserv
Slide 33: Former Segment: Precision Machinery
May 2021 Ref. <Former Segment> Precision Machinery ＜Plastic Machinery＞ FY2020： Orders increased due to recovery in demand from the electric and electronic sector in China and an increase in demand from the US and Europe. However, sales decreased due to a lead time from order receipt to sales. Meanwh
Slide 34: Former Segment: Construction Machinery
May 2021 Ref. <Former Segment> Construction Machinery ＜Hydraulic Excavators＞ FY2020： Orders increased due to the strong market in Japan and recovery in demand from the North America region. However, sales decreased due to a lead time from order receipt to sales and operating profit also decreased be
Slide 35: Former Segment: Industrial Machinery
May 2021 Ref. <Former Segment> Industrial Machinery FY2020： With regard to the material handling business, orders increased as demand for products related to electricity and ports as well as logistics systems was strong, and both sales and operating profit increased because of a backlog of orders. F
Slide 36: Former Segment: Ships
May 2021 Ref. <Former Segment> Ships FY2020： Amid the continuing sluggish market for the fiscal year under review, the segment booked an order for three new vessels as in the previous fiscal year. The segment delivered four vessels as in the previous fiscal year, resulting in increased sales, but op
Slide 37: Former Segment: Environmental Facilities and Plants
May 2021 Ref. <Former Segment> Environmental Facilities and Plants FY2020： In the energy plant business, orders increased partly because we won large- scale projects for biomass-fueled power generation plants in Japan and Europe. Both sales and operating profit increased due mainly to a backlog of o
Slide 38: Forward-looking statements
May 2021 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 — FY2020 Earnings Presentation on 6ix

Sumitomo Heavy Industries — FY2020 Earnings Presentation

Slide 1: Financial Summary for FY2020 and Projections for FY2021

Slide 2: Index

Slide 3: Financial Summary for FY2020 and Projections for FY2021

Slide 4: Financial Summary for FY2020

Slide 5: Operating Profit by Segment

Slide 6: Analysis of Changes in Operating profit

Slide 7: Consolidated Balance Sheet

Slide 8: Consolidated Cash Flow Statement

Slide 9: Performance Forecast for FY2021

Slide 10: Change in Fiscal Year-End

Slide 11: Financial Summary by Former Segment

Slide 12: Overseas Sales by Regional Segment

Slide 13: Medium-Term Management Plan 2023

Slide 14: From Medium-Term Management Plan 2019 to Plan 2023

Slide 15: Basic Policy for the Medium-Term Management Plan 2023

Slide 16: Long-term Objective

Slide 17: Continuation of ROIC Management

Slide 18: Financial Targets of the Medium-Term Management Plan 23

Slide 19: Points for Formulation of the Medium-Term Management Plan 2023

Slide 20: Social Issues Identified from the Viewpoint of MegaTrends

Slide 21: Targeted Development Areas in the Medium-Term Management Plan 2023

Slide 22: Efforts to Promote Sustainability

Slide 23: Reviewing the Business Portfolio

Slide 24: New Segments and Business Exploration Direction

Slide 25: Model Configuration of New Segments

Slide 26: Orders, Sales and Operating Profit by New Segment

Slide 27: Mechatronics Segment

Slide 28: Industrial Machinery Segment

Slide 29: Logistics & Construction Segment

Slide 30: Energy & Lifelines Segment

Slide 31: Segment Re-configuration

Slide 32: Former Segment: Machinery Components

Slide 33: Former Segment: Precision Machinery

Slide 34: Former Segment: Construction Machinery

Slide 35: Former Segment: Industrial Machinery

Slide 36: Former Segment: Ships

Slide 37: Former Segment: Environmental Facilities and Plants

Slide 38: Forward-looking statements