Thk Co., Ltd. · TSE:6481
Thk — FY2020 Earnings Presentation
31 slides from Thk's earnings presentation, Feb 10, 2021
Slide 1: Financial Results Briefing for Fiscal 2020
FINANCIAL RESULTS BRIEFING FOR FISCAL 2020 February 10th 2021 THK CO.,LTD. President & CEO AKIHIRO TERAMACHI This presentation material contains forward looking statements that reflect the Company’s business plans, performance projections, and management strategy. Such statements are based on inform
Slide 2: Contents
Contents Ⅰ. Financial Results for Fiscal 2020 Ⅱ. Major Measures Ⅲ. Financial Forecast for Fiscal 2021 Copyright THK CO., LTD. 2021. All rights reserved.
Slide 3: Financial Results for Fiscal 2020
Ⅰ. Financial Results for Fiscal 2020 Copyright THK CO., LTD. 2021. All rights reserved.
Slide 4: Financial Highlights
Financial Highlights ※地域別売上高は Consolidated sales revenue: down 20.2％ year-on-year to ¥218.9 billion 海外売上高ベース Due to the suspension of automobile manufacturing in the face of the global COVID-19 pandemic, sales revenue fell significantly in the Automotive & Transportation business, mainly in the 2nd
Slide 5: Trend in Net Sales
Trend in Net Sales 353,479 Asia and other 28,772 ●Taiwan Down 23.8％ ●Singapore Down 19.1％ 【Irregular Period】 ●India Down 38.8％ 273,577 286,603 49,228 millions of yen 274,599 24,896 China 22,971 22,021 ●Machine tools Up 17.9％ 41,410 56,980 ●General machinery Down 7.8％ 29,513 30,996 ●Electronics 218,9
Slide 6: Operating Income Change Factors (Industrial Machinery)
(Ref.) Operating Income – Change Factors – (Industrial Machinery) 22.7 Billions of yen 6.1 (17.6) (1.1) 7.7 (2.0) Billions of yen (0.4) Operating Income Effect Change in Foreign Reclassification of Decrease in Operating Income 2019 due to Variable other income and 2020 Exchange Fixed Cost (Industria
Slide 7: Operating Income Change Factors (Automotive & Transportation)
(Ref.) Operating Income – Change Factors – (Automotive &Transportation) (4.5) Billions of yen (16.1) Billions of yen (6.7) 4.1 0.3 0.1 (9.4) Operating Income Effect Reclassification of Decrease in Change in Foreign Operating Income 2019 due to other income and Fixed Cost Variable Exchange 2020 (Auto
Slide 8: Assets, Liabilities and Equity
Assets, Liabilities and Equity Total Assets 460,173 millions of yen Down ¥8,771 million from previous period Cash and Cash in Account |Y/Y : Current liabilities| Y/Y : Up ¥9,747 million Down ¥20,162 million Cash Flows from Operating Activities : ¥ 25,399 million ■Trade and other payables | Y/Y : Cas
Slide 9: Major Measures
Ⅱ. Major Measures Copyright THK CO., LTD. 2021. All rights reserved.
Slide 10: FY2022 Management Targets
FY2022 Management Targets Management Targets Consolidated Revenue： Operating Income： 500.0billions of yen 100.0billions of yen ROE:17% EPS:¥560 Deviation from premised conditions 【IMF Global economic growth rate】 Premise: Ave. 3.8％ Actual: Ave. 1.0％ (2018–20) 【Industrial Machinery business】 【Automot
Slide 11: Growth Strategy: Expansion of Business Areas
Growth Strategy Expansion of Business Areas Copyright THK CO., LTD. 2021. All rights reserved. 10
Slide 12: Megatrends
Expansion of the market THK's growth potential dramatically expands Products related to Products related to Electric actuators ’THK s semiconductors and FA medical equipment solution Products related to Omni THK Next-generation service robots OMNIedge auto parts Requirements Requirements High-qualit
Slide 13: Key Initiatives in Business Lines
Key Initiatives in Business Lines Industrial Machinery Business Expansion of Top Line Automotive & Transportation Business Strategic sales for a wide range of customers The launch of new Continuous development of new products products for Automobile Development of New Business Areas Enhancement of t
Slide 14: Realizing Digital Transformation (DX) Through Omni THK
Realizing Digital Transformation (DX) Through Omni THK Establishing overall image of Omni THK through promotion of THK DX project Before: In-person operations are the norm (meetings, phone calls, e-mail, etc.) Inquiry Check Check Order Delivery Visit Consult Selection Quotation Requirements Inventor
Slide 15: OMNI edge IoT Service: Ball Screws
“OMNI edge” IoT Service for the Manufacturing Industry In second round, service for ball screws launched in November 2020 — Long-awaited additional service for ball screws — High demand for predictive analytics for ball screws, which are often used in conjunction with LM guides, was raising hopes fo
Slide 16: OMNI edge: Free Trial on Rotating Parts
“OMNI edge” IoT Service for the Manufacturing Industry Third round plan: Free trial of “OMNI edge” on rotating parts — Plan to launch services for rotating parts — Outline: Free trial for 30 companies that request it * 30-company quota reached in January 2021, so program has been expanded. Applicati
Slide 17: OMNI edge: Global Service Launch
“OMNI edge” IoT Service for the Manufacturing Industry Global service launch –new service available with global SIM- Countries U.S.A, Thailand, Indonesia, China *Shipping begins in the end of Feb. 2021. Features ■Equipment maintenance in overseas plants accessible from Japan ■Simple price list –New
Slide 18: Development of New Business Areas
Development of new business areas Existing Areas New business areas Bring high-precision products to Helping the service industry promote increasingly high-precision labor-saving whose demands have been increasing due to a labor shortage, semiconductor manufacturing soaring labor costs, devices and
Slide 19: Product Ranges Used in Various Scenarios
Product Ranges Used in Various Scenarios Utility slide ATG/ ARG Railway carriage Carriage seat door ATG ARG Railway carriage Automated warehouse maintenance drawer equipment Utility slide UGR Rod actuator Kitchen CRES6000 lifting Hoist for hospital and mechanism nursing care beds, etc. UGR CRES6000
Slide 20: Transport Robots for Automation and Power Saving
To meet demand for automation and power saving Transport robot SIGNAS / SEED Mover Autonomous mobile display robot ・Easy setting with proprietary autonomous movement control system Swivel 360° even in ・Suitable for a variety of applications and tight spaces environments Used for many different appli
Slide 21: Enhancement of the Global Manufacturing Structure
Enhancement of the Global Manufacturing Structure (Industrial Machinery Business） THK India New plant Planned operation in the summer of 2021 ■Target products：LM Guide ■Space of land bought：About 205,000㎡ ■First term floor space：About 37,000㎡ SAMICK-THK Daegu Technopolis Plant (KOREA) New plant Comp
Slide 22: Improvement of Automotive & Transport Business Profitability
Improvement of Automotive & Transport Business Profitability Effects of FY2020 recovery plans in FY2021 Plan 1: Restructuring of global production Plan 2: Restructuring of global Envisage cost reduction effect organization of approx. ¥1.3B in FY2021 Plan 3: Improvement of productivity/processes Cost
Slide 23: Automotive and Transportation Business Initiative
Automotive and Transportation Business Initiative Backed by the trend of “CASE” accelerating the development of linear motion products for automobiles Unit for integrated Unit for active suspension Mechanical Level brake system system control unit Electric power Next-generation steering parts Suspen
Slide 24: Financial Forecast for Fiscal 2021
Ⅲ. Financial Forecast for Fiscal 2021 Copyright THK CO., LTD. 2021. All rights reserved.
Slide 25: Orders Received by Region (Industrial Machinery)
Orders Received by Region ＜Industrial Machinery Business＞ THK CO., LTD. (Japan) * exclude export % Change, Billions of YEN 50 47.9 Order value 40 32.7 (9.7) 6.5 2.8 30 42.2 (35.9)(63.1)(63.3)(56.0)(43.2)(17.9) 8.5 Order value transferred to 20 Automotive & Transportation 10 32.5 25.0 17.8 15.5 14.3
Slide 26: Financial Forecast (Consolidated)
Financial Forecast (Consolidated) （Millions of Yen） 2021/12 2020/12 2019/12 Forecast Results Results Revenue 290,000 218,998 274,599 Y/Y +32.4％ -20.2％ -20.3％ Operating Income 26,000 -8,499 18,277 Y/Y - - -65.4％ Income before income taxes 26,200 -9,725 18,168 Y/Y - - -65.2％ Profit Attributable to Own
Slide 27: Financial Forecast (Unconsolidated)
Financial Forecast (Unconsolidated) （Millions of Yen） 2021/12 2020/12 2019/12 Forecast Results Results (Japanese GAAP) (Japanese GAAP) (Japanese GAAP) Net Sales 145,000 102,866 136,189 Y/Y +41.0％ -24.5％ -26.9％ Domestic 93,700 69,817 92,800 Y/Y +34.2％ -24.8％ -26.9％ Operating Income 13,100 365 11,933
Slide 28: Operating Income (FY2021E) Change Factors
(Ref.) Operating Income（FY2021E) – Change Factors – Industrial FY2020 Revenue: 144.2 billions of yen FY2021(E) Revenue: 198.5 billions of yen Machinery (IFRS) Operating Income: 7.7 billions of yen (IFRS) Operating Income: 28.2 billions of yen (0.8) 28.2 3.0 Billions of yen 27.9 Other income and Chan
Slide 29: Trends in COGS and SG&A
Trends in COGS and SG&A COGS Sales-cost ratio increased by 3.4 points Y/Y 74.2% 74.8% 71.1% 75.4% 78.8% ・Due to decrease revenue COGS ratio 251,181 203,112 214,490 207,130 Millions of Yen 172,567 2017/3 2017/12 2018/12 2019/12 2020/12 ( accounting Irregular period ) IFRS SG&A 20.5% SG&A ratio increa
Slide 30: Trends in Orders, Sales and Backlog (Domestic)
【Support Statement】 － Trends in Orders, Sales and Backlog(Domestic – Unconsolidated) – （millions of yen） 80,000 Orders Sales 70,000 Backlog 60,000 50,000 40,000 30,000 20,000 10,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6
Slide 31: Trends in Orders Classified by Industry
【Support Statement】 （millions of yen） –Trends in Orders Classified by Industry (Unconsolidated)– 12,000 Machine Tool General Machinery 10,000 Electronics 8,000 6,000 4,000 2,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9