Sodick Co., Ltd. · TSE:6143
Sodick — Q2 2022 Earnings Presentation
43 slides from Sodick's earnings presentation, Aug 18, 2022
Slide 1: 2Q FY22/12 Results Briefing
Tokyo Stock Exchange Prime Market 6143 2Q FY22/12 Results Briefing Sodick Co., Ltd. August 18, 2022
Slide 2: Agenda: Financial Results Summary and Business Strategy
1. 2Q FY22/12 Financial Results Summary and FY22/12 Full-year Financial Results Projections Hirofumi Maejima, Executive Managing Director (Corporate Division) 2. Medium and Long-term Business Strategy Kenichi Furukawa, President and Representative Director 2
Slide 3: 2Q FY22/12 Financial Results Summary / Projections
2Q FY22/12 Financial Results Summary/ FY22/12 Financial Results Projections 3
Slide 4: 1. 2Q Financial Results Summary 2. Full-year Projections
1. 2Q FY22/12 Financial Results Summary 2. FY22/12 Financial Results Projections 4
Slide 5: FY2022 Q2 Financial Results Highlights
Financial Results Highlights Results significantly improved from FY21 results (influenced by the depreciation of the yen) FY2022 Sales: 39.3 billion yen up 13.9% YoY Q2 OP: 3.4 billion yen up 28.2% YoY Results continued to increase steadily mainly in products for semiconductors and electronic compon
Slide 6: Financial Results Highlights
Financial Results Highlights Net sales increased due to an increase in sales of machine tools and injection molding machines. (The amount influenced by the weakening yen was about 2,400 million yen.) The operating profit margin improved due to an increase in sales. Ordinary profit increased ow
Slide 7: Details of Changes in Operating Profit
Details of Changes in Operating Profit Gross profit increased significantly, as unit sales increased. Total SG&A expenses up 703 million yen year on year (Increased personnel expenses, increased sales promotion and advertising expenses associated with the holding of in-person exhibitions, etc.).
Slide 8: Ratio of Operating Profit to Net Sales (Quarterly)
Ratio of Operating Profit to Net Sales (Quarterly) OPM Net sales decreased due to the spread of the COVID-19. Sales of EDMs was Net sales have recovered in Greater China since March Recovery from a fall sluggish owing to the and are showing a recovery due to COVID-19 U.S.-China trade friction trend
Slide 9: Financial Results by Segment
Financial Results by Segment FY18 FY19 FY20 FY21 FY22 YoY (million yen) Change 2Q 2Q 2Q 2Q 2Q Machine tool segment 29,980 23,444 17,063 24,145 28,245 17.0% Industrial machinery segment 4,981 4,213 5,316 4,628 5,244 13.3% Food machinery segment 3,151 2,344 1,515 2,521 2,344 -7.0% Other segments 3,303
Slide 10: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment ■ Machine Tool Segment Net sales (Quarterly changes) Net Sales 20,000 • Net sales were sluggish in auto-related 16,000 14,149 industries due to a semiconductor shortage and other factors 12,000 • Net sales increased year on year as there was a growing demand for products
Slide 11: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment ■ Industrial Machinery Segment Net sales (Quarterly changes) 4,000 Net Sales • In Japan, sales of products for auto-related industries, such as car-mounted components 3,000 2,618 related to CASE, and for electronic components and medical industries were 2,000 strong • Ne
Slide 12: Financial Results by Segment: Food Machinery Segment
Financial Results by Segment ■ Food Machinery Segment Net sales (Quarterly changes) 3,000 Net Sales • Net sales decreased year on year as orders for several projects were put off to in the 2,000 second half owing to a lockdown in China, 1,323 though demand for noodle-making machine- related equipmen
Slide 13: Financial Results by Segment: Other Segments
Financial Results by Segment ■ Other Segments Net sales (Quarterly changes) Net Sales 2,000 • Demand continued for ceramics for 1,621 semiconductor manufacturing equipment 1,500 manufacturers • In the precision die and molding business, 1,000 net sales increased year on year due to an increase in th
Slide 14: Balance Sheet
Balance Sheet Total assets significantly increased due partly to a push by the weak yen Net assets increased due to an increase (about 6,000 million yen) in foreign currency translation adjustments owing to the weakening yen, and equity ratio also improved 145,082 134,866 119,555 33,586 114,647
Slide 15: Cash Flow
Cash Flow FY18 FY19 FY20 FY21 2Q FY22 Major breakdowns An increase in contract liabilities of 7,900 million yen Cash flow from operating activities 9,275 8,336 5,270 7,642 1,523 A decrease in advances received of -4,800 million yen An increase in inventories of -3,400 million yen Payments into time
Slide 16: 1. 2Q Financial Results Summary 2. Full-year Projections
1. 2Q FY22/12 Financial Results Summary 2. FY22/12 Financial Results Projections 16
Slide 17: Changes in JMTBA Orders and EDMs Ordered
Changes in Amount of JMTBA Orders and in Number of EDMs Ordered from the Company (million yen) 日本工作機械工業会 JMTBA Machine工作機械受注金額・ Tool Orders (value) (Units) ソディック Sodick放電加工機受注台数 EDM Orders (units) 210,000 700 The number of The demand machines ordered 180,000 increased in monthly reached 600 its maxi
Slide 18: Changes in Numbers of EDMs Ordered by Region
Changes in Numbers of EDMs Ordered in Quarters by Region The number of orders received from auto-related North and The number of orders received were strong in medical-related Europe industries was on a recovery trend South America industries but slightly stagnant in auto-related industries The dire
Slide 19: FY22/12 Full-year Financial Results Projections
FY22/12 Full-year Financial Results Projections (by Segment) We revised net sales upward owing partly to an increase in sales of machine tools and industrial machines and to a push by the weak yen The operating profit margin fell by 0.4 points from the plan at term beginning of the fiscal year m
Slide 20: FY22/12 Full-year Projections (by Segment)
FY22/12 Full-year Financial Results Projections (by Segment) Machine Tools: We revised net sales upward due partly to sales of machine tools being significantly over the forecast at the beginning of the fiscal year in Japan and to a push by the weak yen Industrial Machinery: We revised both net
Slide 21: Medium and Long-term Business Strategy
Medium and Long-term Business Strategy 21
Slide 22: Medium-term Management Plan
Medium-term Management Plan We estimate that we will post net sales of 89,600 million yen and operating profit of 9,100 million yen by the fiscal year ending December 2024 OP (million yen) (million yen) 100,000 100,000 20,000 89,600 82,700 81,800 9,400 77,900 75,174 6,500 8,500 75,000 75,000 7,700 1
Slide 23: Measures by Segment: Promotion of digital marketing
Measures by Segment Machine Tool Segment ■ Promotion of digital marketing Net sales Improving customer services by utilizing web channels 56,300 51,485 Setting up of Sodick Connect We supply customers holding our machine tools 38,024 with various pieces of information useful at manufacturing sites,
Slide 24: Measures by Segment: Follow-up business and profitability
Measures by Segment Machine Tool Segment ■ Expansion of follow-up business and increase of profitability Improving after-sales service • Increasing the line of regular maintenance products: We aim at increasing subscription rate by increasing plans by model and use • Improving remote services: Short
Slide 25: Measures by Segment: Awards and New Products
Measures by Segment Machine Tool Segment ■ Awards and New Products LPM325S won the best award (METI Minister Award) in the 52nd Machinery Industrial Design Awards IDEA The metal 3D printer LPM325S won the best award of the METI Minister Award. In addition to performance improvements that have been p
Slide 26: Measures by Segment: Prospects for Machine Tool Segment
Measures by Segment Machine Tool Segment ■ Prospects for Machine Tool Segment • Needs for solutions to problems with advanced manufacturing • Promotion of DX Solution service • Contribution to SDGs • Needs for additive manufacturing After-sales service • General solutions for After-sales service bus
Slide 27: Measures by Segment: Industrial Machinery
Measures by Segment We estimate that we will Industrial Machinery post net sales Segment of xx million yen and operating income of xx million yen by the fiscal year ending December 2024 Net sales Increasing sales in the molding field, in which we can use our strengths • Promoting the sale of elect
Slide 28: Measures by Segment: Food Machinery
Measures by Segment Policy We on Food estimate that weMachinery Food will post Segment net Machinery sales Segment of xx million yen and operating income of xx million yen by the fiscal year ending December 2024 Promotion of development of new techniques to expand Net sales business areas • New pr
Slide 29: Strengthening Management Base
Strengthening Management Base Japan Kaga Business Site, Sodick Extension of the food machinery factory and repair of the existing factories Extension 4,200 m2 area Amount About 1,170 million yen invested Food machines (e.g., noodle-making machines and rice cookers) Items Assembly areas, showrooms, t
Slide 30: Financial Policy
Financial Policy We will improve business management to achieve financial targets and indexes newly set Management indexes • Introducing the index of capital efficiency Capital ROE of 8% or more • We have adopted not a single-year average efficiency (on 5-year average) but a five-year average beca
Slide 31: Shareholder Returns Policy and Dividend Projection
Shareholder Returns Policy and Divided Projection Shareholder returns policy Aim for DOE of 2% or more and total return ratio of 30% or more 1株当たり配当金 Dividends per share DOE（配当金総額/株主資本） DOE (Total Dividends/Shareholders’ Equity) 2.3% 2.3% 2.1% 2.1% 2.1% 2.1% 2.1% 2.0% 2.0% 1.8% 25 25 26 27 22 24 20
Slide 32: Purchase of Own Shares and Cancellation of Treasury Shares
Purchase of Own Shares and Cancellation of Treasury Shares We have decided to purchase own shares and cancel treasury shares in order to enhance stock value through improving return to shareholders and the quick capital policy in response to the change of business environment Outline of own share
Slide 33: Initiatives for Sustainability
Initiatives for Sustainability Picking out materiality (important issues) Sodick’s materiality (important issues) • We recognize the four items at right as our important issues in addressing sustainability Contribute to evolving Promote diversification of issues manufacturing human resources • We wi
Slide 34: Appendix
Appendix 1. Changes in Financial Results 2. Changes in Indexes 3. Changes in Financial Results by Segment 4. Numbers of EDMs Ordered and Sold 5. Ratio of Overseas Sales by Segment 6. Maintenance Service Ratio 7. Outline of Business 8. Exhibition Information 34
Slide 35: Changes in Financial Results
Changes in Financial Results 1Q 2Q 3Q 4Q 1H 2H Full Year FY2020/12 20/03 20/06 20/09 20/12 20/01-20/06 20/07-20/12 20/12 YoY YoY YoY YoY YoY YoY YoY Net Sales 13,030 69.2% 13,671 98.4% 14,042 82.6% 17,285 96.7% 26,702 81.6% 31,327 89.8% 58,030 85.9% Cost of Sales 8,957 73.5% 9,313 101.2% 9,615 81.2%
Slide 36: Changes in Indexes
Changes in Indexes Number of employees 17/03 17/09 17/12 18/06 18/12 19/06 19/12 20/06 20/12 21/06 21/12 22/06 separate 661 690 701 743 755 801 841 869 886 914 924 987 consolidated 3,415 3,616 3,651 3,714 3,676 3,625 3,579 3,576 3,633 3,670 3,683 3,772 ＊Not including employee on loan to subsidiary c
Slide 37: Changes in Financial Results by Segment
Changes in Financial Results by Segment 1Q 2Q 3Q 4Q 1H 2H Full Year FY2020/12 20/03 20/06 20/09 20/12 20/01-20/06 20/07-20/12 20/12 YoY YoY YoY YoY YoY YoY YoY Net Sales 8,238 61.7% 8,825 87.5% 9,254 83.7% 11,706 103.6% 17,063 72.8% 20,961 93.8% 38,024 83.0% Machine Tool Segment profit 197 9.0% 744
Slide 38: Numbers of EDMs Ordered and Sold
Numbers of EDMs Ordered and Sold EDM Orders (Units） FY2020 FY2021 FY2022 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total North&South 56 28 59 82 225 58 70 54 68 250 81 58 139 America Europe 78 61 65 77 281 100 108 113 106 427 96 106 202 China 350 512 468 558 1,888 1,007 858 5
Slide 39: Ratio of Overseas Sales by Segment
Ratio of Overseas Sales by Segment North and South Japan Europe Greater China Asia (million yen) America 16,000 14,000 12,000 10,000 Others 8,000 Food machinery 6,000 Industrial machinery 4,000 Machine tools 2,000 0 2021年 2022年 2021年 2022年 2021年 2022年 2021年 2022年 2021年 2022年 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q
Slide 40: Maintenance Service Ratio
Maintenance Service Ratio Quarterly trends in maintenance services and Breakdown of machinery sales/maintenance service and consumables sales consumables (million yen） Machine 3,000 2Q FY21/12 2Q FY22/12 5,847 Tool 4,945 Maintenance 2,000 services and 4,945 20.5% 5,847 20.7% consumables 22,39 1,000
Slide 41: Outline of Business
Outline of Business Segment Machine tools Industrial machinery Food machinery Die-sinker EDM Horizontal injection molding Noodle-making equipment Wire-cut EDM machine (Noodle production line) Sterile-packed cooked rice production system Small Hole EDM Metal 3D Printer Vertical injection Key molding
Slide 42: Exhibition Information
Exhibition Information Period Location Exhibition Summary and Remarks 2022 MEX Kanazawa May 19 - 21 Japan Kanazawa (The 58th Machinery & Electronics Exhibition in Kanazawa) Jun. 7 - 10 Japan Tokyo FOOMA JAPAN Food machinery exhibition Sep. 12 - 17 U.S.A Chicago IMTS International machine tool exhibi
Slide 43: Disclaimer
Disclaimer This presentation material has been prepared exclusively for the purpose of providing information; the material was not created to advertise, solicit, market, etc., specific products or shares of the Company. The information included in this material is not required by the Financial Instr