Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — Q2 FY2019 Earnings Presentation
26 slides from Sumitomo Heavy Industries's earnings presentation, Nov 1, 2019
Slide 1: Financial Summary for 2Q-FY2019 And Projections for FY2019
Financial Summary for 2Q-FY2019 And Projections for FY2019 2019/11/1 Shinji Shimomura President Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 2: Index
2019/11/1 INDEX 01 Financial Summary for 2Q-FY2019 02 Performance Forecast for FY2019 03 Progress Status of “Medium-Term Management Plan 2019” Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 2
Slide 3: Financial Summary for 2Q-FY2019
2019/11/1 01 Financial Summary for 2Q-FY2019 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 3
Slide 4: Financial Summary Main Points
2019/11/1 01 Financial Summary Unit: JPY billion ■ Main Points (1) Orders FY2018 1H FY2019 1H Change ・Orders decreased Y to Y by 9%. ・Decreases were registered in segments for Orders 461.4 418.6 (42.9) machinery components, precision machinery, construction machinery and Net Sales 423.7 424.7 1.0 en
Slide 5: Operating Profit by Segment
2019/11/1 01 Operating Profit by Segment Unit: JPY billion ■ Comparison with Previous Fiscal Year FY2018 1H FY2019 1H Change ＜Machinery components＞ Operating profit declined due to deteriorating market Machinery conditions, which caused a drop in sales of small and medium size gear reducer and preci
Slide 6: Analysis of Changes in Operating Profit
2019/11/1 01 Analysis of Changes in Operating profit unit: hundred million yen Effect of foreign exchange 341 9 Others Effect of (14) (23) Increased / decreased Selling, revenue general (40) 272 and administr ative expenses Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 6
Slide 7: Consolidated Balance Sheet
2019/11/1 01 Consolidated Balance Sheet Unit: JPY billion September March 2019 Change 2019 September March 2019 Change 2019 Liabilities 489.1 487.9 (1.2) Current Assets 583.6 580.1 (3.5) Notes and accounts payable 188.1 173.9 (14.2) Cash and 73.6 81.0 7.4 deposits Interest-bearing debts 73.3 80.6 7.
Slide 8: Overseas Sales by Regional Segment
2019/11/1 Ref. Overseas Sales by Regional Segment Unit：JPY billion Total Hydraulic Excavators 1H-FY2018 1H-FY2019 1H-FY2018 1H-FY2019 (April - September) (April - September) (April - September) (April - September) Sales Sales Ratio Sales Sales Ratio Sales Sales Ratio Sales Sales Ratio North America
Slide 9: Performance Forecast for FY2019
2019/11/1 02 Performance Forecast for FY2019 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 9
Slide 10: Performance Forecast for FY2019
2019/11/1 02 Performance Forecast for FY2019 ■ Full-year forecast revised downward due to the impact of economic slowdown Unit: JPY billion Actual [Ref.]Forecast Forecast Actual 1H- Actual FY2018 FY2019 (at FY2019 (at 1H-FY2018 2018.5) 2018.10) FY2019 Orders 461.4 418.6 952.2 930.0 860.0 Net Sales 4
Slide 11: Machinery Components
2019/11/1 02 Machinery Components 1H of FY2019：Orders for medium-to-small scale gear reducers and precision gear reducers for robot applications decreased due to an overall contraction in demand. On the other hand, sales increased, thanks to order backlog and consolidation of Lafert as our subsidiar
Slide 12: Precision Machinery
2019/11/1 02 Precision Machinery ＜ Plastic Machinery ＞ 1H of FY2019： Orders and sales dropped due to shrinking demand in electric and electronic industries in China and in Japanese and European markets. FY2019： Tough market conditions are expected to continue. ＜ Precision Equipment and Others＞ 1H of
Slide 13: Construction Machinery
2019/11/1 02 Construction Machinery ＜ Hydraulic Excavators ＞ 1H of FY2019 ： Orders dropped due to a contraction of demand in the ASEAN region, however, sales increased due in part to order backlog in the domestic market. FY2019 ： While the overall market conditions were mixed, the markets in Japan a
Slide 14: Industrial Machinery
2019/11/1 02 Industrial Machinery 1H of FY2019 ：Orders and sales in material handling machinery business increased, thanks to solid demand for electric power and port facilities and for logistics and parking systems. Orders in other industrial machinery business expanded due to an increase in demand
Slide 15: Ships
2019/11/1 02 Ships 1H of FY2019： Given the prolonged stagnation of the shipbuilding market, we received an order for one new vessel during the current year as opposed to none during the same period in the previous year. Low ship prices and reduction of sales from ship repairing translated into defic
Slide 16: Environmental Facilities and Plants
2019/11/1 02 Environmental Facilities and Plants 1H of FY2019 ：Orders and sales in energy plant business decreased from the same period in the preceding year due in part to a drop in the number of large-scale projects for biomass-fueled power generation equipment. In water treatment plant business,
Slide 17: Performance Forecast for FY2019 by Segment
2019/11/1 02 Performance Forecast for FY2019 by Segment Unit: JPY billion Actual Actual Actual [Ref.] Forecast Forecast FY2019 1H-FY2018 1H-FY2019 1H-FY2018 FY2019 (at 2019.5) (at 2019.10) Orders 68.3 65.9 134.2 135.0 130.0 Machinery Components Net Sales 62.4 64.7 133.4 135.0 130.0 Operating profit
Slide 18: Progress Status of Medium-Term Management Plan 2019
2019/11/1 03 Progress Status of “Medium-Term Management Plan 2019” Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 18
Slide 19: Progress Status of MTMP19 (Overall)
2019/11/1 03 Progress Status of “MTMP19” (Overall) Actual Actual Plan “MTMP19” Plan FY2017 FY2018 FY2019 Numerical targets FY2019 JPY791.0 b JPY903.1 b JPY885.0 b Net sales:JPY800 billion 8.8% 8.3% 6.8% Operating Profit Ratio:7.5％ (JPY69.9 b) (JPY75.2 b) (JPY60.0 b) ROIC: 7.5% or more 10.3％ 10.2% 7.
Slide 20: Achievement Status of Tasks in the MTMP 2019
2019/11/1 Achievement Status of Tasks in the “MTMP 2019” (Cumulative total for 03 three-years) Implementation Tasks Status ・Expansion of business scale based on acquisition and turnaround in market conditions (FY17 & 18), business expansion in other countries Over-achievement ・Implementation of acti
Slide 21: Progress Status of MTMP19
2019/11/1 03 Progress Status of “MTMP19” ■ Forecasts at the beginning of the year were adjusted downward as uncertainties over the business climate intensified after the start of FY2019 ■A focus is placed on executing measures for a “turnaround toward high profitability” that should lead to the next
Slide 22: Progress of MTMP 2019: Active M&A
2019/11/1 03 Progress of “MTMP 2019” <Active M&A> ■Acquisition of Invertek Drives, Ltd. of United Kingdom (scheduled to be completed in early November 2019) <Purpose> ・Acquisition of the technology and production locations for motor control products (inverters) ・ In combination with Lafert’s motor p
Slide 23: Organizational Integrations and Alliances
2019/11/1 Progress Status of “MTMP19” 03 Organizational Integrations and Alliances Unit: JPY billion Actual Forecast New Consolidated 1H-FY2019 FY2019 Segment Companies Net Net Orders Orders Sales Sales Machinery Components Lafert Group 11.0 10.4 20.0 20.0 Precision Machinery Persimmon Technologies
Slide 24: Strengthening of Aftermarket Business
2019/11/1 03 Progress of “MTMP 2019” ＜Strengthening of aftermarket business> Opening of Service Technical Center for Gear Reducers @Nagoya (June 2018) Opening of Customer Experience Center of LBX Company, U.S. @Kentucky (June 2019) Addition of SIT, a gear reducer service company, to the group compan
Slide 25: Active Promotion of CSR
2019/11/1 03 Progress of “MTMP 2019” <Active Promotion of CSR> Achievements in 1H of 2019 Tasks ・Dialogue with a cumulative total of 18 departments ・Integrating the dialogue with business Products/ Establishment of CSR policy (mission and departments to substantiate the materiality of Services indic
Slide 26: Forward-looking statements notice
2019/11/1 All forward-looking statements regarding the company’s future performance are based on information currently available to Sumitomo Heavy Industries and determined subjectively. Future performance is not guaranteed and all information related to future performance contained herein is subjec
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