Toyo Engineering Corporation · TSE:6330
Toyo Engineering — Q2 FY2017 Earnings Presentation
22 slides from Toyo Engineering's earnings presentation, Nov 10, 2017
Slide 1: Outline of Financial Results
Mission: Engineering for Sustainable Growth of the Global Community Vision: Global Leading Engineering Partner Values: Integrity, Creativity, Diversity, Learning, Team Second Quarter of Fiscal Year Ending March 2018 OUTLINE OF FINANCIAL RESULTS November 10, 2017 Toyo Engineering Corporation
Slide 2: Contents
Contents Page Outline of Income Statement Performance Summary 3 Income Statement 5 Net Sales 6 Gross Profit 8 Operating Income 9 Ordinary Income 10 Profit Attributable to Owners of Parent 11 Financial Position Balance Sheet 12 Interest Bearing Debt Balance 13 Cash Flows 14 New Orders New Orders 15 B
Slide 3: Performance Summary
Performance Summary Decrease in revenue and profit compared with the same period of the previous year New orders : JPY 108.0 billion Reached 43% of FY2017 target FY2017 forecast is the same as initial plan. 3
Slide 4: Performance Summary
Performance Summary JPY billion Forecast 2016/9 2017/9 Difference Progress 2018/3 Net sales 205.2 180.9 (24.3) 370.0 49% Gross profit 13.3 12.1 (1.2) 27.5 44% Gross profit margin 6.5% 6.7% 0.2% 7.4% SG&A expenses 7.9 10.2 (2.3) 21.0 49% Operating income 5.3 1.9 (3.4) 6.5 29% Operating income margin
Slide 5: Income Statement
Income Statement JPY billion 2016/9 2017/9 Forecast Difference Progress % % 2018/3 Net sales 205.2 100.0 180.9 100.0 (24.3) 370.0 49% Cost of sales 191.9 93.5 168.7 93.3 23.2 Gross profit 13.3 6.5 12.1 6.7 (1.2) 27.5 44% Selling, general and administrative expenses 7.9 3.9 10.2 5.6 (2.3) 21.0 49% Op
Slide 6: Net Sales
Net Sales JPY billion Compared with the same period of the previous year 431.9 2016/9 2017/9 Difference 205.2 180.9 (24.3) -12% 299.8 2016/9 2017/9 Difference Japan 26.7 41.8 15.1 % 13% 23% 10% Overseas 178.5 139.1 (39.4) 205.2 180.9 % 87% 77% -10% Total 205.2 180.9 (24.3) Compared with forecast for
Slide 7: Net Sales by Region and Product
Net Sales JPY billion 2017/9 Net Sales : JPY 180.9 billion China 1.2 Central and Pharmaceuticals etc. Others 3.6 Others 0.1 South America 1.9 Petrochemicals 1.3 0% Japan Chemicals / 2% 84.8 North America 1% Fertilizers 1% 41.8 10% 33.8 19% 1% 23% 18.6 Russia and Central Asia 4% 6.8 Region Product 47
Slide 8: Gross Profit
Gross Profit JPY billion Gross profit margin 30.5 10.2% 6.5% 6.7% 3.7% 2016/3 2016/9 2017/3 2017/9 15.9 Compared with the same period of the previous year 13.3 12.1 2016/9 2017/9 Difference 13.3 12.1 (1.2) -9% Gross profit margin 6.5% 6.7% +0.2% Compared with forecast for 2018/3 Forecast Result 2016
Slide 9: Operating Income
Operating Income JPY billion Operating income margin 11.0 3.7% 2.6% 1.1% -0.5% 5.3 2016/3 2016/9 2017/3 2017/9 Compared with the same period of the previous year 1.9 2016/9 2017/9 Difference 5.3 1.9 (3.4) -64% SG&A expenses 7.9 10.2 (2.3) (2.0) Compared with forecast for 2018/3 Forecast Result Diffe
Slide 10: Ordinary Income
Ordinary Income JPY billion Ordinary income margin 6.8 3.3% 1.3% 1.4% 0.4% 2016/3 2016/9 2017/3 2017/9 3.8 Compared with the same period of the previous year 2.6 2016/9 2017/9 Difference 6.8 2.6 (4.2) -62% 1.6 Compared with forecast for 2018/3 Forecast Result Difference Progress 2018/3 2017/9 2016/3
Slide 11: Profit Attributable to Owners of Parent
Profit Attributable to Owners of Parent JPY billion Profit attributable to owners of parent margin 1.2% 1.0% 3.0 0.6% 0.3% 2.4 2016/3 2016/9 2017/3 2017/9 Compared with the same period of the previous year 1.4 2016/9 2017/9 Difference 1.1 2.4 1.1 (1.3) -54% Compared with forecast for 2018/3 Forecast
Slide 12: Balance Sheet
Balance Sheet JPY billion Assets 2017/3 2017/9 Difference Liabilities and net assets 2017/3 2017/9 Difference Current assets 281.7 268.9 (12.8) Current liabilities 237.1 218.6 (18.5) Cash and deposits 126.0 98.3 (27.7) Short-term interest bearing debt 8.4 7.1 (1.3) Marketable securities 1.1 4.9 3.8
Slide 13: Interest Bearing Debt Balance
Interest Bearing Debt Balance JPY billion 32.6 32.5 31.8 32.1 Consolidated 5.0 4.3 4.3 4.5 subsidiaries +0.3 Non-consolidated 27.6 28.2 27.3 27.8 2016/3 2016/9 2017/3 2017/9 Interest bearing debt ratio Debt equity ratio (times) Net debt (JPY billion) 10.6% 10.3% 0.64 0.63 0.62 10.1% 10.0% 0.59 (72.2
Slide 14: Cash Flows
Cash Flows JPY billion Cash flows 2015/4~2016/3 2016/4~9 2016/4~2017/3 2017/4~9 Operating activities 46.3 1.5 18.9 (25.1) Investing activities (11.7) (14.1) (16.6) 0.5 Financing activities 1.0 (0.4) (1.5) (0.0) Net increase/decrease 33.6 (19.3) (1.4) (24.5) in cash Free cash flow 34.6 (12.5) 2.3 (24
Slide 15: New Orders
New Orders JPY billion 2017/9 New orders : JPY 108.0 billion Major contracts Over JPY 10 billion 443.5 Petrochemical, INDONESIA Japan 38.2 Oil & Gas, INDONESIA Power / Railway etc., THAILAND Over JPY 5 billion Power / Railway etc., JAPAN Power / Railway etc., INDONESIA Over JPY 2 billion Power / Rai
Slide 16: New Orders by Region and Product
New Orders JPY billion Region 443.5 Product 443.5 116.7 108.0 116.7 108.0 52.6 52.6 2016/3 2016/9 2017/3 2017/9 2016/3 2016/9 2017/3 2017/9 Japan 38.2 8.2 22.1 19.7 Petrochemicals 219.1 5.2 6.7 36.4 Southeast Asia 129.6 27.3 64.7 77.2 Oil & Gas - 12.2 27.3 24.9 Southwest Asia, Power / Railways etc.
Slide 17: Backlog of Contracts
Backlog of Contracts JPY billion 2017/9 Backlog of contracts JPY 404.9 billion 823.0 Major contracts Japan 111.6 Over JPY 50 billion 653.1 Power / Railway etc., THAILAND 93.2 Petrochemical, MALAYSIA 492.6 Petrochemical, USA 61.2 404.9 Overseas Over JPY 10 billion 39.0 711.4 Chemical / Fertilizer, IN
Slide 18: Backlog by Region and Product
Backlog of Contracts JPY billion Region 823.0 Product 823.0 653.1 653.1 492.6 492.6 404.9 404.9 2016/3 2016/9 2017/3 2017/9 2016/3 2016/9 2017/3 2017/9 Japan 111.6 93.2 61.2 39.0 Petrochemicals 494.7 366.8 249.4 189.7 Southeast Asia 338.4 285.1 230.3 220.5 Oil & Gas 21.5 12.4 6.8 24.4 Southwest Asia
Slide 19: Forecast
Forecast No change from initial forecast as of 19 May, 2017 JPY billion 2Q Forecast 2017/3 2017/9 2018/3 Net sales 431.9 180.9 370.0 Gross profit 15.9 12.1 27.5 Gross profit margin 3.7% 6.7% 7.4% SG&A expenses 17.9 10.2 21.0 Operating income (2.0) 1.9 6.5 Operating income margin -0.5% 1.1% 1.8% Or
Slide 20: Forecast
Forecast JPY billion Operating income Net sales New orders Gross profit margin margin 7.4% 3.7% 431.9 1.8% 370.0 250.0 116.7 -0.5% 2017/3 2018/3 2017/3 2018/3 2017/3 2018/3 2017/3 2018/3 Result Forecast Result Forecast Result Forecast Result Forecast Gross profit Operating income Ordinary income Pro
Slide 21: Reference: Historical Data
-Reference- Historical Data Forecast 2016/3 2016/9 2017/3 2017/9 2018/3 Net sales JPY billion 299.8 205.2 431.9 180.9 370.0 Gross profit JPY billion 30.5 13.3 15.9 12.1 27.5 Gross profit margin % 10.2% 6.5% 3.7% 6.7% 7.4% SG&A expenses JPY billion 19.4 7.9 17.9 10.2 21.0 Operating income JPY billion
Slide 22: Toyo Engineering Corporation
Toyo Engineering Corporation URL http://www.toyo-eng.com For further questions on this material, please contact: Wataru IIDA General Manager Corporate Communications Division 2-8-1 Akanehama, Narashino, Chiba, Japan 275-0024 TEL +81-47-454-1681 E-mail ir@toyo-eng.com The forecasts given above are ba