Sumitomo Heavy Industries, Ltd. · TSE:6302

Sumitomo Heavy Industries — Q2 2022 Earnings Presentation

38 slides from Sumitomo Heavy Industries's earnings presentation, Nov 11, 2022

Slide 1: Financial Summary for Q2 FY2022, Projections for FY2022
Financial Summary for Q2 FY2022 Projections for FY2022 2022/11/11 President Shinji Shimomura Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 4: Change in Fiscal Year End (Financial Year End)
2022/11/11 Change in Fiscal Year End (Financial Year End) 01 (Reproduction of Announcement Made in May 2022) [Projections for FY2022] Starting from this fiscal year (ending December 31, 2022), the financial year end is changed to December 31. This fiscal year (FY2022), which is a transition period,
Slide 5: Financial Summary for Q2 FY2022
2022/11/11 01 Financial Summary for Q2 FY2022 <Year-on-year comparison> • Orders: Global demand for machinery was in an upward trend and orders increased year-on-year in all segments. • Net sales: Increased because of the impact of yen depreciation but the increase was limited due to production cons
Slide 6: Performance by Segment
2022/11/11 01 Performance by Segment (1) Orders: Significantly increased partly because of strong demand for semiconductor-related products and receipt of orders for large-scale projects for biomass-fueled power generation plants in Japan as well as robust demand for small-to-medium sized gear reduc
Slide 7: Analysis of Changes in Operating Profit
2022/11/11 01 Analysis of Changes in Operating Profit Unit: JPY billion 50.0 (7.8) 10.0 40.0 6.1 (12.6) 30.0 31.0 26.7 20.0 FY2021 増収効果為替影響 Effect of Selling販管費 & その他 FY2022 Effect of sales exchange administrative Other 1st Half increases 1st Half rates expenses Unit: JPY <Effect of sales increases
Slide 8: Consolidated Balance Sheet (Assets)
2022/11/11 01 Consolidated Balance Sheet (Assets) March 2022 September 2022 Change Unit: JPY billion ■Total assets: Current Assets 648.1 705.9 57.8 Increased as a result of increases in sales and capital investment. Cash and deposits 88.8 103.0 14.2 Contract assets 294.8 287.0 (7.8) ■Contract assets
Slide 9: Consolidated Balance Sheet (Liabilities and Net Assets)
2022/11/11 01 Consolidated Balance Sheet (Liabilities and Net Assets) March 2022 September 2022 Change Unit: JPY billion Liabilities 528.1 560.6 32.5 ■Notes and accounts payable – trade: Notes and accounts Decreased due to difficulty in parts payable - trade 172.6 170.3 (2.3) procurement in the Logi
Slide 10: Consolidated Cash Flows Statement
2022/11/11 01 Consolidated Cash Flows Statement Unit: JPY billion Item 2022/1H ■Cash flows from operating activities: JPY24.2 billion due to an increase in working capital. Operating Activities 24.2 ■Cash flows from investing activities: Profit before income taxes 29.0 High-level investment continue
Slide 12: Performance Forecast for FY2022
2022/11/11 02 Performance Forecast for FY2022 ■Capital investment and demand for machinery are expected to continue to be strong until the end of this fiscal year. Domestic Overseas ■Cost-increasing factors that can be ascertained as of now have been *1 6 months from Apr. to Sep. 2021/2022 9 months
Slide 13: Performance Forecast by Segment for FY2022
2022/11/11 02 Performance Forecast by Segment for FY2022 Orders Net sales Operating Profit [Reference] [Reference] [Reference] Forecast Actual 1H*1 FY2022*2 Forecast Forecast Forecast FY2022*2 Actual 1H*1 FY2022*2 Forecast Actual 1H*1 FY2022*2 Forecast FY2022 (As of May 2022) /Operating FY2022 (As o
Slide 14: Mechatronics
2022/11/11 02 Mechatronics 1H FY2022: Orders and sales increased due to a rise in demand for small-to-medium sized gear reducers, precision gears for robot articulations and motors in Japan, Europe and the US. Although operating profit was positively impacted by increased sales and yen depreciation,
Slide 15: Mechatronics
2022/11/11 02 Mechatronics Orders Net sales Unit: JPY billion 3-4Q 1-2Q Operating profit (left scale) Profit ratio (right scale) [Reference] Gear reducer business : Sales contribution ratio by model (approximate numbers) For use in Gear motor Gear box precision Electric Service Total (middle size) (
Slide 16: Industrial Machinery
2022/11/11 02 Industrial Machinery <Plastics machinery> 1H FY2022: Orders, sales and operating profit all decreased due to the cooling of demand from China and Europe, which had been strong in the first half. FY2022: As there is almost no change from the previous forecast, orders and sales will incr
Slide 17: Industrial Machinery
2022/11/11 02 Industrial Machinery Orders Net sales Unit: JPY billion 3-4Q 1-2Q Operating profit (left scale) Profit ratio (right scale) <Reference> - Sales mix of injection molding machines by segment (approximate numbers) - Business performance for semiconductor production equipment (ion implanter
Slide 18: Logistics & Construction
2022/11/11 02 Logistics & Construction <Hydraulic excavators> 1H FY2022: Demand from the Chinese market decreased significantly due to an economic slowdown and lockdowns in the country but demand from Japan and North America was strong, resulting in an increase in orders. Meanwhile, sales and operat
Slide 19: Logistics & Construction
2022/11/11 02 Logistics & Construction Orders Net sales Unit: JPY billion 3-4Q 1-2Q Operating profit (left scale) Profit ratio (right scale) <Reference> - Industrial cranes: order mix by segment (approximate numbers) Electric Ship- - Hydraulic excavators: demand by region/changes in sales (approxima
Slide 20: Energy & Lifelines
2022/11/11 02 Energy & Lifelines 1H FY2022: Orders in the energy plant business increased partly because orders were received for large-scale projects for biomass- fueled power generation plants in Japan. Meanwhile, sales decreased due to a decrease in a backlog of orders in Japan, and an operating
Slide 21: Energy & Lifelines
2022/11/11 02 Energy & Lifelines Orders Net sales Unit: JPY billion 3-4Q 1-2Q Operating profit (left scale) Profit ratio (right scale) <Reference> - Energy plant business: main projects for which orders were received in 1H FY2022 Planned timing of Customer Construction site Boiler type* operation st
Slide 22: Ref. Company-wide Changes in Orders/Sales/Operating Profit
2022/11/11 Ref. Company-wide Changes in Orders/Sales/Operating Profit Mechatronics Industrial Machinery Orders Net sales Operating profit Logistics & Construction Energy & Lifeline Others Unit: JPY billion Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 22
Slide 23: Ref. Segment Breakdown and Semiconductor-Related Sales
2022/11/11 Segment Breakdown (Plastics Machinery and Hydraulic Excavators) Ref. Sales of the Semiconductor-Related Product Business Unit: JPY billion Plastics machinery Hydraulic excavators 3-4Q 1-2Q Orders Net sales Orders Net sales Products for semiconductor production that we possess and their ke
Slide 24: Ref. Capital Investment, R&D, Personnel, Forex Sensitivity
2022/11/11 Ref. Capital Investment, Depreciation Cost, Research & Development Cost, Personnel, Forex Sensitivity Unit: JPY billion Capital investment* Depreciation & amortization Research & development* 3-4Q 1-2Q *Actuals are based on cash flow. *Actuals are based on P/L. Forecast is based on budget
Slide 25: Ref. Overseas Sales by Regional Segment
2022/11/11 Ref. Overseas Sales by Regional Segment 1H FY2022*1 (Apr. 2022 to Sep. 2022) <Exchange rate: JPY132 per US dollar> Asia (Excluding Unit: JPY billion North America Europe China) China Others Overseas total Japan Total sales Mechatronics 30.9 32.3 12.7 12.9 9.4 98.3 28.6 126.9 (plastics mac
Slide 27: Medium-Term Management Plan 2023 Key Development Areas
2022/11/11 03 <“Medium-Term Management Plan 2023” Key Development Areas> Key areas Development targets Develop environmental conservation technologies necessary for sustainable Environment industries (Waste water/waste treatment technologies) Develop futuristic technologies towards a decarbonized so
Slide 28: Topics (1) Automation: Magnetic Wheeled Robot
2022/11/11 03 Topics (1) <Key Development Area: Automation> Successful development of magnetic wheeled robot capable of traveling over curved steel surfaces • Utilizing the Challenge System,* the Technology Research Center succeeded in developing a robot that can easily travel on curved steel surfac
Slide 29: Topics (2) Actuator Wins HERMES AWARD 2022
2022/11/11 03 Topics (2) <Key Development Area: Automation> A newly-developed actuator for robot drives wins the “HERMES AWARD 2022” at the Hannover Messe • TUAKA, an all-in-one actuator jointly developed by SHI and its German subsidiary Sumitomo (SHI) Cyclo Drive Germany GmbH (SCG) won the “HERMES
Slide 30: Topics (3) Completion of New Monterrey Plant
2022/11/11 03 Topics (3) <Gear Reducers: Completion of the New Monterrey Plant (September 2022)> Completion and startup of a new plant in Monterrey, Mexico The new plant is the largest of SHI’s four gear reducer plants in Mexico. Gear reducers are used to drive various forms of industrial machinery,
Slide 31: Topics (4) Ion Implanter: New Factory Completed
2022/11/11 03 Topics (4) < Ion Implanter: Completion of a New Factory (October 2022)> Sumitomo Heavy Industries Ion Technology Co., Ltd. (SMIT), a wholly owned subsidiary of SHI, manufactures, sells, and services ion implanters used in the semiconductor manufacturing process. The global semiconducto
Slide 32: Topics (5) Next-Generation Heavy-Ion Cancer Therapy Device
2022/11/11 03 Topics (5) <Development of a Next-Generation Heavy-Ion Cancer Therapy Device> Start of production of a demonstration model of the “Quantum Scalpel,” a next-generation heavy-ion cancer therapy device • SHI and the National Institutes for Quantum Science and Technology successfully devel
Slide 34: Promoting Sustainability
2022/11/11 04 Promoting Sustainability Results of 1H of FY2022 Issues - Started an earnest discussion to reduce CO2 emissions during the - Promote CSV to improve social value use of products by customers, a core CSV target - Strengthen measures to respond to material issues of - Increased non-financ
Slide 35: E: Response to Climate Change Risks
2022/11/11 04 <E (Environment: Response to Climate Change Risks> Perform climate change scenario analysis and conduct a study to reduce risks and utilize opportunities 1. Scenario analysis in line with TCFD disclosure Importance Risk Opportunity High Strengthening of regulations for fossil fuel powe
Slide 36: S: Response to Business and Human Rights
2022/11/11 04 <S (Social): Response to Business and Human Rights> Accelerated response in line with a rise in demand for response to human rights issues in the supply chain With priority given to areas that are considered to carry a high risk, checked and evaluated such areas - The Group’s approach:
Slide 37: G: Board of Directors' Effectiveness Assessment Results
2022/11/11 04 < G (Governance): Taking into Account the Board of Directors’ Effectiveness Assessment Results > Toward further improved governance Issue 1: Composition and ideal state of the Board of Directors → Continue to enhance the diversity of the Board of Directors, for example by appointing fe
Slide 38: All forward-looking statements regarding the company’s future performance are based on information currently available
2022/11/11 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 subje

Sumitomo Heavy Industries — Q2 2022 Earnings Presentation on 6ix

Sumitomo Heavy Industries — Q2 2022 Earnings Presentation

Slide 1: Financial Summary for Q2 FY2022, Projections for FY2022

Slide 2: INDEX

Slide 3: Financial Summary for Q2 FY2022

Slide 4: Change in Fiscal Year End (Financial Year End)

Slide 5: Financial Summary for Q2 FY2022

Slide 6: Performance by Segment

Slide 7: Analysis of Changes in Operating Profit

Slide 8: Consolidated Balance Sheet (Assets)

Slide 9: Consolidated Balance Sheet (Liabilities and Net Assets)

Slide 10: Consolidated Cash Flows Statement

Slide 11: Projections for FY2022

Slide 12: Performance Forecast for FY2022

Slide 13: Performance Forecast by Segment for FY2022

Slide 14: Mechatronics

Slide 15: Mechatronics

Slide 16: Industrial Machinery

Slide 17: Industrial Machinery

Slide 18: Logistics & Construction

Slide 19: Logistics & Construction

Slide 20: Energy & Lifelines

Slide 21: Energy & Lifelines

Slide 22: Ref. Company-wide Changes in Orders/Sales/Operating Profit

Slide 23: Ref. Segment Breakdown and Semiconductor-Related Sales

Slide 24: Ref. Capital Investment, R&D, Personnel, Forex Sensitivity

Slide 25: Ref. Overseas Sales by Regional Segment

Slide 26: Topics

Slide 27: Medium-Term Management Plan 2023 Key Development Areas

Slide 28: Topics (1) Automation: Magnetic Wheeled Robot

Slide 29: Topics (2) Actuator Wins HERMES AWARD 2022

Slide 30: Topics (3) Completion of New Monterrey Plant

Slide 31: Topics (4) Ion Implanter: New Factory Completed

Slide 32: Topics (5) Next-Generation Heavy-Ion Cancer Therapy Device

Slide 33: Promoting Sustainability

Slide 34: Promoting Sustainability

Slide 35: E: Response to Climate Change Risks

Slide 36: S: Response to Business and Human Rights

Slide 37: G: Board of Directors' Effectiveness Assessment Results

Slide 38: All forward-looking statements regarding the company’s future performance are based on information currently available