Sodick Co., Ltd. · TSE:6143
Sodick — Q2 FY2018 Earnings Presentation
25 slides from Sodick's earnings presentation, Aug 17, 2018
Slide 1: 2Q FY18/12 Results Briefing
2Q FY18/12 Results Briefing August 17, 2018 Sodick Co., Ltd.
Slide 2: Table of Contents
Table of Contents Consolidated Accounting Period for FY17/12 (Previous FY) …………… 3 I. 2Q FY18/12 Financial Results Summary ………………………… 4 II. Figures for the Purpose of Comparison ………………………… 13 III. FY18/12 Financial Results Projections ………………………… 17 (Reference Materials) ………………………………………………………… 22 2
Slide 3: Consolidated Accounting Period for FY17/12 (Previous FY)
Consolidated Accounting Period for FY17/12 (Previous FY) Sodick 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. Accordingly, the year ended Decemb
Slide 4: I. 2Q FY18/12 Financial Results Summary
I. 2Q FY18/12 Financial Results Summary
Slide 5: Financial Results Highlights (on a Financial Report Basis)
Financial Results Highlights (on a Financial Report Basis) In China after the Chinese New Year holiday, EDMs sold well and on the whole net sales progressed according to plan at the beginning of the period. Gross profit margin improved due to a substantial increase in the number of EDMs sold and gre
Slide 6: Operating income margin
Ratio of Operating Income to Net Sales (Quarterly: on a Financial Report Basis) Sales substantially increased in 2Q up from 1Q thanks to favorable EDM sales after the New Year holiday in China. Operating income margin remained at a high level of 13.2% owing to a substantial increase in the number of
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 2Q FY17/12 2Q FY18/12 In China, although demand in smartphone-related industries was rather stagnant, the increasing sophistication and automation of manufacturing, Actual Actual and the government s subsid
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 16 of total net sales. Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services and
Slide 9: Overseas Sales Ratio by Segment (on a Financial Report Basis)
Overseas Sales Ratio by Segment (on a Financial Report Basis) * Due to irregular settlement of accounts resulting from the fiscal year-end Sodick has been developing its business globally with an overseas sales ratio of 67.2%. change, figures for the Jan-Mar 2017 period of Chinese subsidiaries whose
Slide 10: Balance Sheet
Balance Sheet Non-current assets substantially increased owing to active capital investment at home and abroad (e.g. the Kaga multi- factory, Distribution Centers, Head Office Building No. 2 (R&D building), the new building for sales office in US, land for sales office in UK, the second factory of t
Slide 11: Cash Flow
Cash Flow Cash flows from operating activities substantially increased due mainly to an increase in profits before income taxes, notes and accounts payable trade, and advances received. Although cash flows from investing activities substantially increased due to capital investment at home and abroad
Slide 12: 2Q FY18/12 Topics
2Q FY18/12 Topics 1 R&D Building completed at Head Office A new R&D building was completed at Head Office in the middle of May. The R&D department has moved into this building and has started operations from the middle of June. In R&D building, labs have been expanded, and the most up-to-date resear
Slide 13: 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 14: Financial Results Highlights
Financial Results Highlights *Figures for the purpose of comparison (Adjusted) (million yen) 2Q FY18/12 Jan-Jun 2017 Increase/Decrease FY18 (Jan-Jun 2018) Full-year Income Income Actual Actual Amount Rate Projection margin margin Net sales 34,317 - 41,416 - 7,099 20.7% 81,000 Gross profit 12,283 35.
Slide 15: Financial Results by Segment
Financial Results by Segment *Figures for the purpose of comparison (Adjusted) (million yen) 2Q FY18/12 Jan-Jun 2017 Increase/Decrease (Jan-Jun 2018) Actual Actual Amount Rate Machine tool segment 24,112 29,980 5,867 24.3% Industrial machinery 5,993 4,981 -1,011 -16.9% segment Food processing Net sa
Slide 16: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment *Figures for the purpose of comparison (Adjusted) Sodick has been developing its business globally with an overseas sales ratio of 67.2 (a 0.4% increase compared to the same quarter in the preceding fiscal year). (million yen) North and South Japan Europe Greater Chin
Slide 17: III. FY18/12 Financial Results Projections
III. FY18/12 Financial Results Projections
Slide 18: 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 19: FY18/12 Financial Results Projections
FY18/12 Financial Results Projections In the situation where we see uncertainty about the future due to concerns about the influence of the trade policies of the USA and China, etc., we are leaving our full-year financial results projections unchanged based on the 2Q financial results etc. (million
Slide 20: FY18/12 Financial Results Projections by Segment
FY18/12 Financial Results Projections by Segment (million yen) FY17/12 Machine tool segment FY18/12 FY18/12 Progress (Group-wide: Jan-Dec) In Japan, steady earnings are expected thanks to toward the subsidy policy and demand for replacing aging Full-year projection 2Q Actual Actual equipment. projec
Slide 21: Policy on Shareholder Returns and Dividend Projection
Policy on Shareholder Returns and Dividend Projection Dividend policy: We are aiming for 2% or more for the dividend on equity ratio (DOE). We plan to pay an annual dividend of 24 yen per share (12 yen for each interim and terminal) in FY18/12. (yen) Dividend per share 1 DOE 30 3.0% 2.4% 25 2.1% 2.5
Slide 22: (Reference Materials)
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Slide 23: 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 Fukui Plant Sodick Europe Ltd. (U.K.) Sodick Deutschland GmbH Sodick Korea Co., Ltd. (Germany) Sodick (
Slide 24: Participation in Major Exhibitions
Participation in Major Exhibitions The Company will participate in both domestic and overseas exhibitions, thereby engaging in proactive marketing. Dates Location Exhibition Notes 2018 One of the world s largest Sep. 10-15 USA Chicago IMTS2018 machine tool trade shows Sep. 18-22 Germany Stuttgart AM
Slide 25: 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