Hosokawa Micron Corporation · TSE:6277
Hosokawa Micron — H1 FY2022 Earnings Presentation
41 slides from Hosokawa Micron's earnings presentation, Jun 17, 2022
Slide 1: Financial Results The 1st half of FY2022
Financial Results The 1st half of FY2022 17th Jun. 2022 Process Technologies for Tomorrow © HOSOKAWA MICRON CORP. All rights Reserved.
Slide 2: Agenda
１．Financial Summary The 1st half of FY2021 ２．Full Year Forecast and Future Initiatives ３．Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 1/39
Slide 3: 1. Financial Summary
１．Financial Summary The 1st half of FY2021 ２．Full Year Forecast and Future Initiatives ３．Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 2/39
Slide 4: Financial Summary
Financial Summary Consolidated Bookings Net Sales Operating Profit 39.6 billion JPY 32.6 billion JPY 3.0 billion JPY YoY YoY YoY +8.1％ +18.0％ +18.6％ Powder Processing Business Blown Film Business Bookings Net Sales Bookings Net Sales 28.6billion JPY 23.8billion JPY 11.0billion JPY 8.8billion JPY YoY
Slide 5: Financial Highlights
Financial Highlights No major impact from the COVID-19 pandemic or the situation in Ukraine. Bookings in the first half of the year reached a record high of 39.6 billion JPY (+8.1% YoY). Net sales increased to 32.6 billion JPY (+18.0% YoY), but Continuing trend of longer delivery times due to supply
Slide 6: Anticipated Risks and Current Status ①
Anticipated Risks and Current Status ① Anticipated risks at the time of planning Anticipated Risk Factors Current Status ① Post-Corona, the easing of movement As expected, restrictions will allow people to start operating expenses moving in earnest in Apr.2022 are increasing. ➡Increase in operating
Slide 7: Anticipated Risks and Current Status ②
Anticipated Risks and Current Status ② Anticipated risks at the time of planning: Impact on profit Estimated Status in Anticipated Risk Factors Impact FY2022 1H (per year) ① Increase in expenses due to （100M JPY） recovery from the COVID-19 pandemic (travel, ＋4 ＋1.5 YoY transportation, etc.) ② Soarin
Slide 8: Business Results
Business Results Per Net Per Net Percentage （100 million JPY） FY2022 1H FY2021 1H Change Sales(%) Sales(%) change(%) Bookings 396 ー 366 ー 29 8.1 Net Sales 326 100.0 276 100.0 49 18.0 Gross Profit 110 34.0 97 35.3 13 13.7 Operating Profit 30 9.3 25 9.2 4 18.6 Ordinary Profit 31 9.6 26 9.8 4 16.0 Net
Slide 9: Trend of Bookings, Net sales & Backlog
Trend of Bookings, Net sales & Backlog Despite strong orders, the backlog carried over to FY2022 2H is at a record high level due to the trend of longer delivery times caused by disruptions in supply chains and logistics. （ca.46.6billion JPY） （100 million JPY） 500 466 450 Bookings Net Sales Backlog
Slide 10: Application Segmentation
Application Segmentation Brown films 34.0% 32.0% 31.6% 33.3% 37.2% 35.9% 37.2% Blown Film 42.0% Recycle Business Metals & Minerals 3.8% 5.4% 3.0% 5.0% 2.6% 3.5% 5.5% 9.1% 9.7% Polymers 8.2% 11.2% 13.0% 13.2% 6.6% 2.1% 4.0% 10.3% 1.9% 1.3% 5.7% 3.3% 1.7% Electronic materials 6.2% 6.7% 9.2% 9.0% 1.8%
Slide 11: Bookings by business (Powder processing business)
Bookings by business（Powder processing business） +16.6% YoY due to strong sales in the pharmaceuticals sector, where cell culture medium and other applications were strong, and in the mainstay chemicals and mineral products sectors. On the other hand, inquiries remained strong, although there was a
Slide 12: Bookings by business (Aftersales)
Bookings by business （Aftersales） Repair and construction work in Japan and overseas progressed as planned, resulting in a 16.4% YoY increase. Especially in Japan, maintenance work for the pharmaceuticals, electronic component materials, and feed manufacturing industries was strong. （100 million JPY
Slide 13: Bookings by business (Toll processing)
Bookings by business （Toll processing） Processing by airflow-type ultrafine grinding mills (jet mills) in Japan and overseas, and furthermore, processing by classifiers and complex equipment in Japan were strong (+14.6% YoY). （100 million JPY） 16 14 13 12 12 11 10 8 4 0 FY2018 1H 2019 1H 2020 1H 202
Slide 14: Bookings by business (Blown film business)
Bookings by business （Blown film business） Bookings decreased by 9.0% YoY, but the high level of orders continued, including orders for packaging in the U.S. and for lamination in Europe. （100 million JPY） 160 121 120 110 81 81 80 74 40 0 FY2018 1H 2019 1H 2020 1H 2021 1H 2022 1H © HOSOKAWA MICRON C
Slide 15: Operating profit and ordinary profit bridge
Profit/Loss YoY （million JPY） (+4,969) Cuurency FY2022 1H FY2021 1H Exchange US dollar (US$) 114.95JPY 105.20JPY Rate Euro (€) 130.23JPY 126.11JPY +1.3% YoY due to soaring raw material Cost of sales costs +11.9% YoY (Net sales +18% YoY) due Selling, general and to higher sales activity and personnel
Slide 16: Balance Sheet
Balance Sheet Strong orders increased advances received and cash deposits （million JPY） （ Compared to the end of FY2021 ） Current Assets Liabilities 54,022 30,567 （＋6,833） （＋3,387） Cash and cash equivalents 23,301 （＋3,358） Net Assets Accounts receivable 49,754 18,191 （＋3,815） （＋1,052） Retains Earnin
Slide 17: Cash Flow
Cash Flow （million JPY） YoY +3 +384 +1,093 +44 Operating Advances received increased due to activities continued strong order conditions. Investing There were no major investment projects. activities Financing dividends paid etc. activities © HOSOKAWA MICRON CORP. All rights Reserved. 16/39
Slide 18: Business Results (Non Consolidated)
Business Results（Non Consolidated） Despite longer delivery times in Japan, sales increased by 5.2% YoY. Gross profit margin rose to 46.6% (+3.4 pt YoY) due to the contribution of highly profitable projects. Despite higher labor costs, SG&A expenses remained at the same level as in FY2021 1H due to t
Slide 19: Stock Price and Dividend
Stock Price and Dividend （As of May 16, 2022） Trend of Stock Price and Trading Volume 4,500 1,800 Trading Volume (1000 shares) 4,000 1,600 3,500 1,400 Stock Price （JPY） 3,000 1,200 2,500 1,000 2,000 800 1,500 600 1,000 400 ※Share consolidation 1:0.2 1st Apr.2017 500 200 ※Stock splits 1:2 1st Oct.202
Slide 20: 2. Full Year Forecast and Future Initiatives
１．Financial Summary The 1st half of FY2021 ２．Full Year Forecast and Future Initiatives ３．Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 19/39
Slide 21: Annual Plan of FY2022 (published figures)
Annual Plan of FY2022（published figures） （100 million JPY） Operating Ordinary Net Net Sales Profit Profit Income Consolidated 640 56 56 42 Risk Factors for FY2022 2H • Longer delivery times due to supply chain disruptions and delays in procurement of parts and materials • Continued price hikes for s
Slide 22: Focused Areas and Applications in FY2022 2H
Focused Areas and Applications in FY2022 2H Japan/Asian Group American Group European Group Powder processing business In addition to the Pulverizers for traditionally robust mineral Larger projects, mainly pharmaceuticals (cell products, food powder lithium-ion battery culture media, transportation
Slide 23: The Impact of the Situation in Russia and Ukraine
The Impact of the Situation in Russia and Ukraine Direct impact ✓ Sales office in St. Petersburg, Russia No Japanese expatriates, only locally hired employees (16) ✓ Large projects every few months ✓ Sales in Russia account for 1-2% of consolidated amount Negative impact of about 3.5 million euros (
Slide 24: Improving Performance
Improving Performance 14 th Mid-term 15 th Mid-term 16 th Mid-term 17th Mid-term Plan for 3 years Plan for 3 years Plan for 3 years Plan for 3 years Challenge to be Global Standard Further development of Hosokawa Micron Hosokawa Micron Hosokawa Micron Group continues to Mountain Range of Group inten
Slide 25: DX: Promoting Digital Reform
DX: Promoting Digital Reform in-house ✓ Started working with consultants to develop an IT grand design ✓ Start analysis and visualization of internal data (conduct SFA KPI analysis, create and operate dashboards) ✓ Accumulation of customer information in MA (Marketing Automation) for services ✓ Prep
Slide 26: Contribution to a Circular Economy
Contribution to a Circular Economy Powder Processing Business ✓ Powder Technology Contributes to Various Fields Leading to Environmental Preservation Electrode materials for lithium-ion batteries for EV, silicon materials for solar cells, etc., neodymium magnets for motors and generators, ceramic be
Slide 27: Sustainability Initiatives
Sustainability Initiatives Efforts to Reduce Equipment Waste ✓ Europe： Used equipment purchase and sales, and equipment and system rental services are strong. ✓ Japan： Focus on maintenance services to extend the life of equipment. （thousand Net Sales(Used equipment sales （million JPY） Aftersales Per
Slide 28: Examples of Initiatives for SDGs
Examples of Initiatives for SDGs Use of Solar Cell Reduction of emission of CO2 by switching transportation method Germany HAAG Logistic Center Japan HQ＆Osaka Plant Germany HAAG Organic solvent free painting Rental / used machine business Parshe Analyzer Certification mark for used machines © HOSOKA
Slide 29: 3. Appendix
１．Financial Summary The 1st half of FY2021 ２．Full Year Forecast and Future Initiatives ３．Appendix © HOSOKAWA MICRON CORP. All rights Reserved. 28/39
Slide 30: Company Profile
Company Profile Representative Kohei HOSOKAWA Foundation Apr. 1916 capital 144.96 Million JPY Fiscal Establishment Aug.1949 year end Sep. stock Prime Market of Tokyo stock exchange. market （from Apr. 4 th, 2022） Head Office 1-9, Shodaitajika, Hirakata-shi, Osaka Location Consolidated 1,857 Employees
Slide 31: About Us
About Us Message “Powder Technology contributes to the Society” Corporate Vision The Hosokawa Micron Group will always be the leading global company covering the mountain range of Powder Technologies. The Group will achieve peaks of excellence in the development and commercialization of advanced mat
Slide 32: About Us
About Us Our Business Providing powder handling machinery and equipment and system engineering for all industrial fields. Business Areas Powder Processing Business and Blown Film Business © HOSOKAWA MICRON CORP. All rights Reserved. 31/39
Slide 33: Powder Technologies
Powder Technologies Drying Milling Various operations Separation Granulation Blending Measurement Recovery of powders, Filtration © HOSOKAWA MICRON CORP. All rights Reserved.
Slide 34: Powder Processing Equipment
Powder Processing Equipment Example of a product that contributes to the manufacture of rechargeable batteries, electronic components, etc. Dry for Material of Fine milling of raw materials of secondary Lithium-Ion Battery batteries (e.g., LIB including all solid battery) Fine milling of electronics
Slide 35: Blown Film and Related Technology
Blown Film and Related Technology Film manufacturing equipment The melted polymer is inflated with using the inflation method air and molded into a bag shape. The translucent part is the film Offering the system (including Winder, Orientation, etc.) © HOSOKAWA MICRON CORP. All rights Reserved.
Slide 36: Where powders are used?
Where powders are used ? Lithium ion battery Synthetic resin Water pipe : Poly Vinyl Chloride (PVC) Cathode：Cobalt Based, Phosphate based Fluorine coating : Fluorocarbon resin (PTFE) Precursors of Cobalt Based Manganese PET bottle, Synthetic fiber, Industrial plastic : Anode : Graphite, Silicon Poly
Slide 37: Global Synergic Effect
Global Synergic Effect © HOSOKAWA MICRON CORP. All rights Reserved. 36/39
Slide 38: Corporate History
Corporate History Foundation of the Osaka Turbine Water Mill Asian subsidiaries, Malaysia (1995), Korea 1916 Company (1996), France (1999), China (2005), India 1995 (2007), Russia (2012), Thailand (2019), Company name changed to the Hosokawa 1949 Iron Works Poland (2020) 2007 New headquarters buildi
Slide 39: Geographical Segmentation
Geographical Segmentation ※Size of squares shows sales amount. Sales by Group Companies’ Location 55.4% 25.1% 19.5% Sales by Customers’ Location (Destination) 39.3% 21.2％ 20.7% 18.8% 39.3% 21.2％ 20.7% 18.8% © HOSOKAWA MICRON CORP. All rights Reserved. 38/39
Slide 40: Major Group Companies (Net Sales)
Major Group Companies（Net Sales） ※Size of squares shows sales amount. © HOSOKAWA MICRON CORP. All rights Reserved. 39/39
Slide 41: No part of this document may be reproduced without permission
No part of this document must be reprinted or reproduced by any means without permission from our company. © HOSOKAWA MICRON CORP. All rights Reserved.