Slide 1: FY17/12 Results Briefing
TSE 1st Section, 6143 Create Your Future FY17/12 Results Briefing February 23, 2018
Slide 2: Contents
Contents Consolidated Results for FY17/12 ........................................... 3 I. FY17/12 Financial Results Summary ........................................ 4 II. Figures for the Purpose of Comparison .................................. 14 III. Shareholder Returns ...........................
Slide 3: Consolidated Results for FY17/12
Consolidated Results for FY17/12 The Company has changed its fiscal year-end from March 31 to December 31, effective from FY2017, thereby eliminating the three-month difference between the parent’s year-end and year- ends of its subsidiaries in China. The year ending December 31, 2017 (FY17/12) is a
Slide 4: I. FY17/12 Financial Results Summary
I. FY17/12 Financial Results Summary
Slide 5: Financial Results Highlights (on a Financial Report Basis)
Financial Results Highlights (on a Financial Report Basis) Thanks to large increase in the number of EDMs sold mainly in China, both net sales and income significantly surpassed projections at the beginning of the period. Operating income margin largely improved thanks to increase in the number of p
Slide 6: Operating Income Margin
Ratio of operating income to net sales (Quarterly: on a financial report basis) Thanks to sales growth in China, net sales for 3Q were 23,196 million yen, a record high on a quarterly basis. Income margin which was high in 2Q continued to remain high in 3Q at 14.2%, supported by a larger number of p
Slide 7: Financial Results by Segment (on a Financial Report Basis)
Financial Results by Segment (on a Financial Report Basis) (million yen) Machine tool segment In China, both orders received and sales jumped much more than initially FY17/3 FY17/12 projected and helped drive earnings growth, thanks to high demand from the automotive industry where the shift to elec
Slide 8: Net Sales by Segment (on a Financial Report Basis)
Net Sales by Segment (on a Financial Report Basis) Maintenance services and consumables, a stable source of cash, account for about 15% of total net sales. Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services an
Slide 9: Overseas Sales Ratio by Segment (on a Financial Report Basis)
Overseas Sales Ratio by Segment (on a Financial Report Basis) (million yen) 30,000 North and South Japan Europe Greater China Asia America 25,000 Machine tools 20,000 Industrial machinery Food 15,000 processing machinery 10,000 Other 5,000 0 2017/3 FY17/3 2017/12 FY17/12 2017/3 FY17/3 2017/12 FY17/1
Slide 10: Balance Sheet
Balance Sheet Accounts receivable-trade and inventories soared in line with increasing orders. The increase in equity steadily improved balance sheet. Assets Liabilities and net assets (million yen) (million yen) 140,000 140,000 121,815 121,815 120,000 109,271 120,000 109,271 24,943 Other liabilitie
Slide 11: Financial Indicators
Financial Indicators Fluctuation in Interest-Bearing Debt, Net Interest-Bearing Debt, and the Debt-to-Equity Ratio Convertible bonds Interest- Net interest- Debt-to-equity b with stock (million yen) bearing debt bearing debt ratio subscription rights (times) 32,958 33,713 FY14/3 FY15/3 FY16/3 FY17/3
Slide 12: Cash Flows
Cash Flows Cash flows from investing activities soared but were largely within cash flows from operating activities, and cash on hand remained at almost the same level as the previous year. (million yen) FY17/3 FY17/12 Major factors for increase and decrease Increase in accounts receivable-trade: -4
Slide 13: Capital Investment/Depreciation/R&D Expenses
Capital Investment/Depreciation/R&D Expenses Fluctuation in Capital Investment/Depreciation (million yen) 5,000 Capital Depreciation investment Major capital investment Yokohama Head Office R&D building 4,000 4,588 Kaga Plant new logistics center 2,659 2,765 2,697 3,000 Expansion of the 2nd factory
Slide 14: II. Figures for the Purpose of Comparison
II. Figures for the Purpose of Comparison * These figures, which have not been audited, are provided only for the purpose of comparison. * Figures for the purpose of comparison are the figures adjusted after we eliminated the three- month difference between the parent’s year-end and the year-ends of
Slide 15: Financial Results Highlights (Adjusted)
Financial Results Highlights * Figures for the purpose of comparison (Adjusted) Thanks to large increase in the number of EDMs sold mainly in Greater China, both net sales and income hit an all-time high. Operating income margins have largely improved from the previous fiscal year to 11.6% thanks to
Slide 16: Financial Results by Segment (Adjusted)
Financial Results by Segment * Figures for the purpose of comparison (Adjusted) (million yen) Machine tool segment Jan-Dec 2016 Jan-Dec 2017 Increase and decrease In Japan, while orders received in relation to the incentive program adopted in March,2017 contributed to sales increase, those from the
Slide 17: Overseas Sales Ratio by Segment (Adjusted)
Overseas Sales Ratio by Segment * Figures for the purpose of comparison (Adjusted) Expanding our business globally, overseas sales ratio is 66.5%. North and South (million yen) Japan Europe Greater China Asia America 30,000 25,000 Machine tools 20,000 Industrial machinery 15,000 Food processing 10,0
Slide 18: III. Shareholder Return
Sodick Il. Shareholder Return Mi © —
Slide 19: Policies for Shareholder Returns and Dividend Projections
Policies for Shareholder Returns and Dividend Projections As a dividend policy, we aim at a dividend yield on shareholders' equity of at least 2%. For FY2017/12, fiscal year-end dividend has been revised upward from initial projection by 2 yen to 12 yen per share. We are planning for an annual divid
Slide 20: IV. FY18/12 Financial Results Projections
. FY18/12 Financial Results Projections
Slide 21: Market Environment
Market Environment Japan: We expect sustained solid demand due to the government subsidy programs and replacement demand due to facility aging. North America: Bolstered by the corporate tax cuts, capital investment demand is expected to increase mainly in the automotive, aerospace and medical equipm
Slide 22: FY18/12 Financial Results Projections
FY18/12 Financial Results Projections Despite income margins declining in line with an increase in fixed cost such as personnel expenses and depreciation, sales to China, our largest market, are expected to increase. Net sales are likely to reach 81,000 million yen, hitting an all-time high. (millio
Slide 23: FY18/12 Financial Results Projections by Segment
FY18/12 Financial Results Projections by Segment (million yen) FY17/12 Machine tool segment FY17/12 FY18/12 (Group-wide, In Japan, steady earnings are expected as there is a (Apr-Dec) Jan-Dec) demand in replacing aging equipment. While capital investment demand is likely to increase Actual Projectio
Slide 24: Projections for Facility Investments/Depreciation Charges/R&D Expenses
Projections for Facility Investments/Depreciation Charges/R&D Expenses For FY18/12, we have the following projections by item. Facility investment is expected to be approx. 8,000 million yen. • Multi-factory at Kaga Plant: approx. 2,500 million yen Facility • New building for sales office in U.K. :
Slide 25: V. Medium and Long-term Strategies and Outlook
. Medium and Long-term Strategies and Outlook
Slide 26: Medium-term Plan
Medium-term Plan Targeting net sales of 93,200 million yen with operating income of 10,600 million yen by FY20/12 Industrial Food Machine machinery processing Others Operating Income tool segment machinery (million yen) segment segment (million yen) Operating Income Net Sales FY16/3 FY17/3 FY17/12 (
Slide 27: Management Strategies
Management Strategies Machine tool segment Expand market shares in all regions Strengthen sales of low-price "VL Series" machine models in the markets of emerging economies Expand sales of high-precision "AL Series" wire EDMs, a main product line of Sodick, in the markets of industrialized countries
Slide 28: Reinforcement of Business Bases (1)
Reinforcement of Business Bases (1) Greater China Production base NEW Development base Sodick Electromechanical (Shanghai) Co., Ltd. Relocation of new company building Sales/service base Total floor area 3,200 m2 Planned Feb 2018 relocation date North America Europe NEW Sodick Inc. NEW Construction
Slide 29: Reinforcement of Business Bases (2)
Reinforcement of Business Bases (2) Production base Kaga Plant (Japan) : Construction of multi-factory and new logistics center Construct a multi-factory capable of manufacturing a wide variety of products including EDMs, machining centers, metal 3D printers and injection molding machines, in order
Slide 30: (Reference Materials)
Sodick (Reference Materials) Pn
Slide 31: Domestic and Overseas Sites
Domestic and Overseas Sites Sodick America Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant Corporation(San Jose) (Chicago) Software Co., Ltd. Head Office and Research and Technology Center Sodick Europe Ltd. (U.K.) Fukui Plant Sodick Deutschland GmbH Sodick Korea (Germany) Co.,Ltd. Sodick (Th
Slide 32: Participation in Major Exhibitions
Participation in Major Exhibitions The Company will participate in domestic and overseas exhibitions, thereby engaging in proactive marketing. Dates Location Exhibition Notes 2018 Feb. 20-24 Germany Dusseldorf METAV (International Exhibition for Metalworking Technologie) Apr. 3-7 Korea Seoul SIMTOS
Slide 33: 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. This information included in this material is not required by the Financial Inst