Slide 1: FY17/3 Results Briefing
TSE 1st Section, 6143 Create Your Future FY17/3 Results Briefing May 19, 2017
Slide 2: Contents
Contents Key Points 3 . FY17/3 Financial Results Summary 4 . FY17/3 Financial Results Projections 15 . Shareholder Return 23 . Medium and Long-term Strategies and Projection 25 (Reference Materials) 29 2
Slide 3: Key Points
Key Points FY17/3 Financial Results Summary Net sales: 61.812 billion yen (-3.333 billion yen or -5.1% year on year), Operating income: 5.236 billion yen (-1.116 billion yen or -17.6% year on year) Net sales decreased, despite increases in unit sales of electrical discharge machines (EDMs) and injec
Slide 4: I. FY17/3 Financial Results Summary
I. FY17/3 Financial Results Summary
Slide 5: Financial Results Highlights
Financial Results Highlights Net sales decreased, despite increases in unit sales of EDMs and injection molding machines, due mainly to the yen being stronger than in the previous year. (Reference: Impact of changes in forex rate: about -4.8 billion yen) Operating income decreased due mainly to incr
Slide 6: Operating Income Margin
Ratio of operating income to net sales (Quarterly) In the 1st quarter, sales in Japan were influenced by delayed purchase in expectation of executing the new capital investment incentive program, and sales in Greater China also struggled to grow while, from the 2nd quarter onwards, continued strengt
Slide 7: Factors Affecting Ordinary Income (Actual Results)
Factors Affecting Ordinary Income (Actual Results) Despite increases in some items, such as research and development and advertising & sales promotion expenses , total SG&A expenses declined. Nonetheless, with a fall in gross profit, ordinary income decreased by 1,098 million yen. (million yen) Gros
Slide 8: Financial Results by Segment
Financial Results by Segment Machine tool segment (million yen) In Japan, business was generally stagnant despite demand for automotive connectors, and electronic FY16/3 FY17/3 Year-on-year change components and lenses for smartphones, as delayed purchase in expectation of implementation of the new
Slide 9: Net Sales by Segment
Net Sales by Segment Maintenance services and supplies, a stable source of cash, accounted for about 20% of net sales. Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance service and supplies Maintenance service and supplies Maintenance service and supplie
Slide 10: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment Sodick has been developing global operations with an overseas sales ratio of 62.7%. (million yen) North and South Japan Europe Greater China Asia America 25,000 Machine 20,000 tools Industrial 15,000 machinery Food processing 10,000 machinery Other 5,000 0 2016/3 FY16
Slide 11: Balance Sheet
Balance Sheet Interesting-bearing liabilities and cash & deposits significantly increased with 8.0 billion yen from issuance of bonds with subscription rights to shares. Net assets slightly decreased due mainly to smaller foreign currency translation adjustments, mainly for conversion of equity capi
Slide 12: Fluctuation in Financial Indicators
Fluctuation in Financial Indicators Fluctuation in the Interest-bearing Debt, Net interest bearing debt and Debt-to-equity Ratio Interest (million yen) bearing Net interest Debt-to-equity ratio bearing debt debt (liabilities) FY13/3 FY14/3 FY15/3 FY16/3 FY17/3 Fluctuation in Equity and Equity Ratio
Slide 13: Cash Flow
Cash Flow Free cash flow marked a strongly positive balance at 6.241 billion yen (up 2.435 billion yen year on year). Cash and cash equivalents at the year-end significantly increased (up 8.709 billion yen year on year). (million yen) FY16/3 FY17/3 Main factors Increase in inventories: -1,000 millio
Slide 14: Facility Investment / Depreciation / R&D Expenses
Facility Investment / Depreciation / R&D Expenses Fluctuation in Facility Investments / Depreciation (million yen) Facility Depreciation investments 6,000 Main facility investments Rebuilding and new- construction of plants 5,000 in Thailand after Semiconductor research and flooding 4,000 developmen
Slide 15: II. FY17/12 Financial Results Projections
II. FY17/12 Financial Results Projections
Slide 16: Change of the Closing Date
Change of the Closing Date From fiscal 2017, the closing date is changed from March 31 to December 31. FY17/12 is a transitional period. (*) *Subject to approval of a proposed resolution, "Partial amendments to the Articles of Incorporation", at the 41st ordinary general shareholders' meeting to be
Slide 17: Market Environment
Market Environment Japan We expect sustained solid demand due to government subsidy programs and replacement demand due to facility aging. North Although demand due to capital investments in the automotive, aerospace, and medical device industries is America expected to be firm and strong, the outlo
Slide 18: FY17/12 Financial Results Projections
FY17/12 Financial Results Projections *On a Financial Report Basis For FY17/12, despite a forecast of the yen being stronger than in the previous year, we expect improved profitability with planned sales increases in new products, incl. metal 3D printers, put on the market the previous year, and ant
Slide 19: FY17/12 Financial Results Projections by Segment
FY17/12 Financial Results Projections by Segment *On a Financial Report Basis (million yen) FY17/12 Machine tool segment (April-Dec. 2017: FY17/3 In Japan, steady earnings are expected Irregular accounts of 9 as companies wait for subsidies. months) Demand due to capital investments is Actual Projec
Slide 20: FY17/12 Projections: Comparisons for Reference (Adjusted)
FY17/12 Financial Results Projections *Comparisons for Reference (Adjusted) (million yen) FY17/12 FY17/3 (January- December 2017) Actual Income margin Projection Income margin Net sales 61,812 — 67,900 — Operating income 5,236 8.5% 6,900 10.2% Ordinary income 4,620 7.5% 6,600 9.7% Net income 3,644 5
Slide 21: FY17/12 Projections by Segment: Adjusted Comparisons
FY17/12 Financial Results Projections by Segment *Comparisons for Reference (Adjusted) (million yen) FY17/12 FY17/3 (January-December 2017) Actual Projections Machine tool segment 43,355 46,000 Industrial machinery 9,366 11,300 segment Food processing Net sales 3,429 4,700 machinery segment Other se
Slide 22: Projections for Facility Investments, Depreciation Charges, and R&D Expenses
Projections for Facility Investments, Depreciation Charges, and R&D Expenses For FY17/12, we have the following projections by item. Capital investment is expected to be around 3.4 billion yen. New building for sales & marketing in US: 0.6 billion yen Facility investment Research and development bui
Slide 23: III. Shareholder Return
Sodick Il. Shareholder Return Mi © —
Slide 24: 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 ending December 31,2017, we are planning for an annual dividend of ¥20 per share (interim dividend ¥10.0, fiscal year-end dividend ¥10.0). 1Di
Slide 25: IV. Medium and Long-term Strategies and Outlook
IV. Medium and Long-term Strategies and Outlook
Slide 26: Metal 3D Printer Operations
Metal 3D Printer Operations Progress of Metal 3D Printer Operations In October 2014, we put metal 3D printers on the3D market for the first time. The business, however, has grown more slowly than originally planned primarily because benchmark tests for, and evaluation of, new manufacturing technique
Slide 27: Medium-term Management Plan
Medium-term Management Plan Targeting sales of 76.9 billion yen with operating income of 8.4 billion yen by FY19/12 Food Industrial Machine tool (million yen) Others processing Operation Income (million yen) machinery segment machinery segment 90,000 segment 11,000 80,000 76,900 10,000 71,200 7,550
Slide 28: Management Strategies
Management Strategies Machine tool segment Expansion of market shares in all regions Strengthen sales of low-price "VL Series" machine models in the markets of emerging economies In the markets of industrialized countries, expand sales of high-precision "AL Series" wire electric discharge machines,
Slide 29: (Reference Materials)
Sodick (Reference Materials) Pn
Slide 30: Domestic and Overseas Sites
Domestic and Overseas Sites Sodick America Corporation Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant (San Jose) (Chicago) Software Co. Ltd. Head Office and Research and Technology Center Sodick Europe Ltd. (U.K.) Fukui Plant Sodick Deutschland GmbH Tokyo Showroom (Germany) Sodick (Thailand)
Slide 31: Information on Participation in Major Exhibitions
Information on Participation in Major Exhibitions Sodick emphasizes proactive marketing with participation in trade fairs in Japan and overseas. May 16 19 China Guangzhou CHINAPLAS 2017 Jun. 13 16 Japan Tokyo FOOMA JAPAN 2017 Jun. 13 16 China Shanghai DMC Die & Mold China) 2017 Jun. 21 24 Thailand B
Slide 32: 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