Hosokawa Micron Corporation · TSE:6277
Hosokawa Micron — FY2024 Earnings Presentation
56 slides from Hosokawa Micron's earnings presentation, Nov 26, 2024
Slide 1: Financial Results of FY2024
Financial Results of FY2024 26th Nov. 2024 Process Technologies for Tomorrow Ticker symbol：6277 © HOSOKAWA MICRON CORP. All rights Reserved.
Slide 2: Agenda
１ Summary of Financial Results for FY2024 2 Forecast for FY2025 3 Long-term vision ４ Medium-term Three-year Business Plan (FY2025 to FY2027) Appendix: Reference Materials © HOSOKAWA MICRON CORP. All rights Reserved. 1/54
Slide 3: Agenda
１ Summary of Financial Results for FY2024 2 Forecast for FY2025 3 Long-term vision ４ Medium-term Three-year Business Plan (FY2025 to FY2027) Appendix: Reference Materials © HOSOKAWA MICRON CORP. All rights Reserved. 2/54
Slide 4: Financial Summary
Financial Summary Development and provision of new, unique, high value-added products and services not available from other companies Sales of projects with price hikes are being booked, and gross profit margins are improving. Powder Processing Business： Bookings are generally delayed due to the pos
Slide 5: Business Segment
Business Segment Powder Processing Business Blown Film Business 23% Equipment sales and Toll processing Material engineering FY2024 Percentage of Net sales Aftersales R&D 77% Blown Film Business Powder Processing Business Equipment sales and engineering © HOSOKAWA MICRON CORP. All rights Reserved. 4
Slide 6: Business Results
Business Results Ordinary profit reached ¥9 billion for the first time. Net profit decreased from the previous year due to extraordinary losses. (impairment losses on core system-related assets and land holdings in Europe) YoY changes YoY (¥ million) FY2023 Results(a) FY2024 Results(b) (c=b-a) chang
Slide 7: Bookings by Application
Bookings by Application Conspicuous postponement of investment decisions, especially for projects related to LIB materials for rechargeable batteries Increased some sectors such as pharmaceuticals, resins, and contract processing Blown film sales increased significantly due to large projects. (¥100
Slide 8: Trend of Bookings, Net Sales & Backlog
Trend of Bookings, Net Sales & Backlog While Net sales are steadily increasing, bookings are slowing down and the backlog is decreasing. (¥100 million) 700 Bookings 600 Net sales 527 Backlog 500 500 447 372 400 267 264 272 300 229 175 200 100 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Slide 9: Trend of Dwell Time in Backlog
Trend of Dwell Time in Backlog Procurement lead time improved and delivery time tends to shorten, approaching the level before the COVID-19 pandemic. Backlog * Backlog dwell time (day) ＝ Net sales per day(Net Sales ÷365) 273day 242day 223day 186day 191day 151day FY2019 2020 2021 2022 2023 2024 © HOS
Slide 10: Net Sales Increase/Decrease Factors
Net Sales Increase/Decrease Factors Powder processing business reached a record high due to the effect of yen depreciation, but excluding the effect of exchange rate fluctuations, the segment recorded a net decrease. Growth in Blown film business compared to the previous fiscal year. ＜ exchange sens
Slide 11: Net Sales by Group company location
Net Sales by Group company location Sales increased in each region, but excluding the impact of foreign exchange rates, some group companies saw a slight decrease in sales by country. Sales increase in the Americas region was mainly due to strong sales in Blown film business. (¥100 million) Americas
Slide 12: Operating Profit Increase/Decrease Factors
Operating Profit Increase/Decrease Factors Gross profit ： Gross profit margin improved by 0.9pp due to the penetration of sales price hikes related to the steep rise in raw material prices, etc. SG&A expenses： Decline in operating margin (-0.3pp YoY) mainly due to higher SG&A expenses such as labor
Slide 13: Balance Sheet
Balance Sheet Capital adequacy ratio ：62.8％(Change from end of FY2023 +2.2pp) (¥ million) *( ) shows the change from end of FY2023 Current assets Liabilities Liability with Interest 64,608 (-18) 36,447 (-1,678) 1,609 Decrease in Cash and Accounts trade cash 27,420 (+1,492) payable, etc. 10,355 (-1,6
Slide 14: Cash Flow
Cash Flow Operating cash flow: Increase in cash due to higher profits Investing cash flow：Decrease due to purchase of PPE Financing cash flow：Decrease mainly due to share buyback and dividend payment Operating cash flow Investing cash flow (¥100 million) YoY (+13) (+5) Effect of exchange Financing c
Slide 15: Investment/Depreciation/R&D expenses
Investment/Depreciation/R&D expenses Major capital investment results for FY2024 are below. ⚫ Renewal of aging buildings and facilities ⚫ Renewal of welfare facilities (cafeteria) in Germany ⚫ Acquisition of land for a factory in Spain and start of building construction ⚫ Installed solar panels at a
Slide 16: Trends of ROE & ROA
Trends of ROE & ROA ROE ROA 11.8% 11.4% 11.3% 10.9% 10.6% 11.2% ROA 9.5% 8.6% 8.6% 8.6% 10.0% 10.0% 8.1% 8.5% 9.5% ROE 9.3% 9.1% 8.0% 7.5% 7.3% 7.0% 5.2% FY2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 *ROE figures are the ratio of net profit to shareholders' equity. ROA figures are the rat
Slide 17: Agenda
１ Summary of Financial Results for FY2024 2 Forecast for FY2025 3 Long-term vision ４ Medium-term Three-year Business Plan (FY2025 to FY2027) Appendix: Reference Materials © HOSOKAWA MICRON CORP. All rights Reserved. 16/54
Slide 18: Forecast for FY2025
Forecast for FY2025 The following three points are taken into account in setting the earnings forecast. ① Uncertainty in the global economy, including conflicts and trade friction ② Customers' cautious stance toward investment, including in the rechargeable battery market (the effect of which also r
Slide 19: Dividend Forecast
Dividend Forecast Our basic concept is to provide stable profit distribution to shareholders while reflecting changes in business performance, and to strive to increase the amount of dividend per share. For FY2025, we plan to pay an annual dividend of ¥120 per share, consisting of interim and year-e
Slide 20: Trends of Investment/Depreciation/R&D expenses
Trends of Investment/Depreciation/R&D expenses Major Capital Investment Plan for FY2025 Europe: Renewal of machining centers (cutting and grinding equipment) Japan: Construction of Cosmetics Center (construction in progress) Investment 5,000 Depreciation R&D expenses 3,774 3,781 3,299 3,140 2,800 2,
Slide 21: Agenda
１ Summary of Financial Results for FY2024 2 Forecast for FY2025 3 Long-term vision ４ Medium-term Three-year Business Plan (FY2025 to FY2027) Appendix: Reference Materials © HOSOKAWA MICRON CORP. All rights Reserved. 20/54
Slide 22: Review of Previous Medium-term Management Plan
Background of Long-term Vision Setting (1) Review of Previous Medium-term Management Plan ： Increase in absolute amount of performance, achieving the target Good points figures in the final year of the current 17th Mid-Term Management Plan Points for future improvement ： Decline in efficiency, espec
Slide 23: Review of the Most Recent Mid-term Plan
Background of Long-term Vision Setting (2) Review of The Most Recent Mid-term Plan Most successful was DX The ability to visualize and share market trends quickly not only improves operational efficiency, but also contributes to strengthening cooperation among overseas group companies. Review of the
Slide 24: Recognition of Business Environment
Background of Long-term Vision Setting (3) Recognition of Business Environment There are many risks, but the key is to be able to take advantage of new business opportunities. In particular, our high-value-added powder processing equipment and systems can be utilized in sustainability-related fields
Slide 25: Long-term Vision ~ Basic Policy ~
Long-term Vision ~ Basic Policy ~ Formulating a policy to develop and resolve Hosokawa's strengths and challenges in the previous mid-term plan. Group Basic Policy Unique & Dominant ~Enhance market presence with Hosokawa's uniqueness~ • Ability to propose systems that • Engineering capabilities to f
Slide 26: Medium-term Plan for Long-term Vision
Medium-term Plan for Long-term Vision What we want to be in 10 years Growth Area 1 Long-term Growth Area 2 vision Improved profit margin Net sales ¥ 150billion Larger projects through uniqueness with engineering Operating profit margin 12％ • Develop and improve products that help • Obtain large-scal
Slide 27: Long-term Vision ~ Strategy ~
Long-term Vision ~ Strategy ~ Dominant Expansion of scale (increase in Net sales) Pursue Hosokawa's uniqueness, ⚫ Larger projects with engineering add value to the company, and ⚫ Expansion into untapped areas and aim for market penetration and acquisition of new customers Enhancement and expansion.
Slide 28: Unique ~ Augmentation of Aftersales ~
Unique ~ Augmentation of Aftersales ~ Development and provision of new, unique, high value-added products and services not available from other companies. Aim to increase net sales of aftersales to one-third of total sales at each of the major group companies (Germany, Holland, U.K., and U.S.). Oper
Slide 29: Dominant ~ Larger Projects with Engineering ~
Dominant ~ Larger Projects with Engineering ~ Increase orders for large-scale projects*1 by shifting from sales of single units, which had been the mainstay of our business, to system sales*2 with our products as the core. *1: System sales: Provision of comprehensive turnkey systems for powder produ
Slide 30: Long-term vision Target figures
Long-term vision Target figures Long-term targets are sales of 150 billion yen, operating profit margin of 12%, and ROE of 12-13%. Net Sales ¥150billion • Growth in Growth Areas Net Sales • New areas Net Sales Focus on ¥100billion including M&A ¥85.4billion Growth Areas 50 210 Sustainable growth Blo
Slide 31: Agenda
１ Summary of Financial Results for FY2024 2 Forecast for FY2025 3 Long-term vision ４ Medium-term Three-year Business Plan (FY2025 to FY2027) Appendix: Reference Materials © HOSOKAWA MICRON CORP. All rights Reserved. 30/54
Slide 32: 18th Medium-term Three-year Business Plan Overview
The 18th Medium-term Three-year Business Plan Overall Overview Long-term vision Unique & Dominant Enhance market presence with Hosokawa's uniqueness Phase１（ The 18th Mid-Term Three-year Business Plan ） FY2027 100 10% 10% Operating Net Profit ROE plan Sales ¥ billion margin Investment １ Creation of g
Slide 33: Track Record of Our Medium-term Three-year Plan
Track Record of Our Medium-term Three-year Plan (Net sales and operating profit) Business performance fluctuates depending on the presence or absence of booms and special factors, but growth is steady over the medium to long term. Net Sales Unique & Dominant Operating Profit (¥100 million) Net sales
Slide 34: 18th Medium-term Plan Basic Measures
The 18th Medium-term Three-year Management Plan Basic Measures Basic Policy Unique & Dominant Enhance market presence with Hosokawa's uniqueness Phase 1 1. 4 Basic Measures 1 2 3 4 Promote product Creation of Data Analysis development aimed at Corporate group and Utilization becoming the de facto Su
Slide 35: Basic Measure 1: Creation of group synergies
[Basic Measure 1] Creation of group synergies Strengthen the Group's profit structure through a global system of development, production, and sales by the right person in the right place, and by enhancing after-sales service by region. Global right person in the right place in Regional after-sales s
Slide 36: Basic Measure 2: Data Analysis and Utilization with DX
[Basic Measure 2] Data Analysis and Utilization with DX Strengthen development of digital services that contribute to solving issues at customers' production sites, including a nighttime unmanned operation system under development. Issues (customer concern) Answers Provide digital solutions □Risk ma
Slide 37: Basic Measure 3: Promotion of product development
[Basic Measure 3] Promote product development aimed at becoming the de facto standard in specific markets Promotion of product development Establishing a competitive advantage by creating a market standard with the Hosokawa Micron Group's technologies due to capture the tide of sustainability Key Me
Slide 38: Basic Measure 4: Corporate Sustainability Practices
[Basic Measure 4] Corporate Sustainability Practices Creating Stakeholder Value through Sustainability Management Key Measure Balancing social contribution and Maximize human capital through business growth based on a human resource development and stakeholder-oriented approach work style reform ◼ C
Slide 39: Financial Strategy to Achieve Long-term Vision
Financial Strategy to Achieve Long-term Vision Phase Investing for sustainable growth and strengthening shareholder returns together. Phase1 Phase2 Phase3 Long-term vision Net sales ¥ 150 billion Operating Profit margin 12% ROE 12~13% Unique & Dominant Phase1 Sustainable profit growth Improvement of
Slide 40: Cash Allocation
Cash Allocation for Enhanced shareholder returns and sustainable growth Input Output • R&D Growth • Contract Processing • Use of cash holdings Financial CF Investments • Facilities Overseas • Use of Financial Leverage ¥4billion＋α expansion, M&A, etc. • Enhancement of test Maintain and center facilit
Slide 41: Shareholder Return Policy
Shareholder Return Policy Achieve a total return ratio of 50% or more, based on stable dividends, together with share buybacks. （¥100 million） 60 120% Total amount of dividends *( ) shows dividends per share (¥) Total amount of treasury stock buyback 50 Total return ratio 100% 87.3% 40 80% ＊ 38 30 5
Slide 42: Agenda
１ Summary of Financial Results for FY2024 2 Forecast for FY2025 3 Long-term vision ４ Medium-term Three-year Business Plan (FY2025 to FY2027) Appendix: Reference Materials © HOSOKAWA MICRON CORP. All rights Reserved. 41/54
Slide 43: Company Profile
Company Profile 108th anniversary Head office building in Hirakata City, Osaka Foundation Apr. 1916 of foundation Establishment Aug.1949 Head Office 1-9, Shodaitajika, Hirakata Location City, Osaka Representative Kohei HOSOKAWA Consolidated 1,964 Employees Non Consolidated 424 *As of 30th Sep. 2024
Slide 44: About Us
About Us Management Philosophy "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 o
Slide 45: About Us: Our Business
About Us Our Business We provide providing machinery, equipment, and system engineering. Business Areas Powder Processing Business and Blown Film Business © HOSOKAWA MICRON CORP. All rights Reserved. 44/54
Slide 46: Powder Technologies
Powder Technologies Hosokawa Micron offers various technologies related to powder Milling Drying Granulation Separation Blending Recovery of Measurement powders, Filtration © HOSOKAWA MICRON CORP. All rights Reserved. 45/54
Slide 47: Blown Film and Related Technology
Blown Film and Related Technology Film manufacturing The translucent part is the film equipment The melted polymer is inflated with air using the inflation method and molded into a bag shape. Offering the system (including Winder, Orientation, etc.) © HOSOKAWA MICRON CORP. All rights Reserved. 46/54
Slide 48: Expanding our Business Worldwide
Expanding our Business Worldwide One of the industry’s largest manufacturing, aftersales service, and R&D systems Manufacturing and repairing large machines by our own factories in Japan, USA, and Europe Global support for maintenance and remodeling (facility improvement) Research and development de
Slide 49: Where powders are used?
Where powders are used ? Lithium ion Synthetic battery resin Automobiles Recycle Toner, Magnets, Cemented Electronics carbide materials material Minerals Clean room Foods Air pollution control Pharmaceuticals Agriculture Chemicals © HOSOKAWA MICRON CORP. All rights Reserved. 48/54
Slide 50: Corporate History
Corporate History Foundation of the Osaka Turbine Water Mill 1916 Company Asian subsidiaries, Malaysia (1995), Korea (1996), 1995 France (1999), China (2005), India (2007), Russia Company name changed to the Hosokawa Iron (2012), Thailand (2019), Poland (2020), Switzerland, 1949 Works Mexico, Chile(
Slide 51: Net Sales by Geographic area
Net Sales by Geographic area ※Size of squares shows sales amount. （FY2024 results） By Group Companies’ Location American Group European Group 57.7% Japan/Asian Group 24.2% 18.1% Customers’ Location (Destination) European Group 42.4% American Group 21.2% Japan 18.6% Asia/others 17.8% © HOSOKAWA MICRO
Slide 52: Net Sales by Customers' location (destination)
Net Sales by Customers’ location (destination) In Europe, sales to Germany, the Netherlands, and Scandinavia declined, but other countries were generally firm. U.S. increase driven by blown film business. Sales in Asia and Others declined overall from the previous year due to a significant decrease
Slide 53: Net sales by Major group companies
Net sales by Major group companies ※Size of squares shows sales amount. Powder Processing Business Blown Film Business （FY2024 results） Powder Processing Business Blown Film Business Netherlands (HOSOKAWA Japan (Headquaters) MICRON BV) Germany (HOSOKAWA ALPINE) Spain(HOSOKAWA SOLIDS& SOLIDS SYSTEM-T
Slide 54: Contribution to Society through Powder Technology (Case 1)
Contribution to Society through Powder Technology (Case 1) PET Bottle PET recycled products that could only be used as fiber can now be recycled into bottles Solid State Polymerization (Drying Technology Application) Electric Vehicle 【 Improved performance of electric vehicles 】 Electrode materials
Slide 55: Contribution to Society through Powder Technology (Case 2)
Contribution to Society through Powder Technology (Case 2) Solar & Wind power Generation Application to manufacture of silicon solar panels and wind turbines Milling Technology Countermeasures to the Protein Crisis Meat substitutes, insect food, and cultured meat from plant materials Milling Technol
Slide 56: Our IR Website
コード QR 自動的に生成さ れた説明 Our IR Website The latest IR materials are available. Please take a look. Hosokawa Micron IR Information Search https://www.hosokawamicron.co.jp/en/ir/ https://www.hosokawamicron.co.jp/en/ir/ https://www.hosokawamicron.co.jp/en/ir/ 【 Disclaimers 】 The forward-looking statements c