Hosokawa Micron Corporation · TSE:6277

Hosokawa Micron — FY2015 1st half Earnings Presentation

27 slides from Hosokawa Micron's earnings presentation, May 27, 2015

  1. Slide 1: The 1st half of financial results FY2015

    Hosokawa Micron Group The 1st half of financial results FY2015 （at the Securities Analysts Association of Japan） May. 27th 2015 President : Yoshio Hosokawa http://www.hosokawamicron.co.jp/en/

  2. Slide 2: The 1st half of financial results Summary FY2015

    １．The 1st half of financial results Summary FY2015 ◆ Consolidated financial summary

  3. Slide 3: The 1st half of financial results FY2015 (consolidated)

    １ The 1st half of financial results FY2015 (consolidated) (100 million yen) FY2014 FY2015 1stH 1stH revised Original plan % on % on actual actual plan Pre.Year Revision Feb.10 th Booking 270 256 95.1% Sales 223 211 235 217 94.6% 97.3% Gross Profit 75 72 (percentage) 33.8% 34.5% Ope. Profit 11 6 12 6

  4. Slide 4: Financial results and forecast (consolidated)

    ２ Financial results and forecast (consolidated) Sales(1stH) Sales(2ndH plan） GPR SGA Ratio Ope. Profit Ratio 40% 36.7% 800 35.9% 34.8% 34.1% 34.5% 35% 700 R, SGA Ratio, Ope.Profit Ratio（ %） ） 29.1% 31.6% 30% 27.3% 27.1% 600 26.3% （ million yen） ） revision 25% 485 465 500 449 406 20% 400 Sales（ 361 2

  5. Slide 5: Financial results (consolidated)

    ３ Financial results (consolidated) 240 50 Backlog Booking Sales Ope.Profit 220 45 ※not include the influence of Booking, Sales, Backlog（100million yen） 200 exchange rate fluctuations 40 180 Lehman Shock 35 Ope.Profit（100million yen） 160 30 140 25 120 20 100 15 80 10 60 5 40 0 20 (5) 0 (10) 1 Qtr. 2

  6. Slide 6: The 1st half financial results (by business segments, consolidated)

    ４ The 1st half financial results (by business segments, consolidated) consolidated) 【Sales】 (100 million yen) FY2014 FY2015 % on ・Powder：chemical, minerals actual actual Pre.Year and China stagnated Powder Proc'g 170 151 88.8% Southeast Asia delays Blown Film 36 47 130.6% ・B.Film：USA runs well Confe

  7. Slide 7: The 1st half of financial results (by business segment)

    ５ The 1st 1st half of financial results（ results（by business segment） segment） （ 100 million yen） yen） Booking （ 100 million yen） yen） Backlog 600 200 9 Confectionery Confectionery Blown Film Blown Film 500 14 Powder Processing Powder Processing 61 36 39 6 40 150 12 6 5 9 23 21 22 19 78 66 400 18 19

  8. Slide 8: The 1st half of financial results: Powder Processing

    ６ The 1st half of financial results results ＜Powder Processing＞ Powder Sales Ratio： Ratio：70.9％ 70.9％ Booking, Sales, Backlog 400 Booking, Sales, Backlog 1stH 2ndH Backlog 350 （100 million yen） 300 250 200 150 100 50 0 Booking Sales FY2013 Booking FY2014 Sales Booking FY2015 Sales ＜Point＞ ・Investmen

  9. Slide 9: The 1st half of financial results: Blown Film

    ７ The 1st half of financial results ＜Blown Film＞ Blown Film Sales Ratio： Ratio：22.3％ 22.3％ Booking, Sales, Backlog Booking, Sales, Backlog（100 million yen） 1stH 2ndH Backlog 80 60 40 20 0 Booking Sales Booking Sales Booking Sales FY2013 FY2014 FY2015 Ope.Profit, Ope.Profit Ratio 2ndH Ope.Profit 8 12

  10. Slide 10: The 1st half of financial results: Confectionery & Bakery

    ８ The 1st half of financial results ＜Confectionery & Bakery＞ Confectionery & Bakery Sales Ratio： Ratio：6.8％ 6.8％ Booking, Sales, Backlog 1stH Booking, Sales, Backlog（100 million yen） 40 2ndH Backlog 30 20 10 0 Booking Sales Booking Sales Booking Sales FY2013 FY2014 FY2015 Ope.Profit, Ope.Profit Rati

  11. Slide 11: Sales by Operating Area (consolidated)

    ９ Sales by Operating Area（ Area（consolidated） consolidated） (million yen) FY2014 FY2015 % on 1stH 1stH Pre.Year Japan Sales 5,902 5,930 100.5% Ope.Profit/% 948 16.1% 815 13.7% 86.0% America Sales 3,126 3,635 116.3% Ope.Profit/% 260 8.3% 297 8.2% 114.2% Europe Sales 14,381 13,317 92.6% Ope.Profit/% 2

  12. Slide 12: Sales by Destination (consolidated)

    １０ Sales by Destination（ Destination（consolidated） consolidated） FY2014 FY2015 % on 1stH 1stH Pre.Year Japan Sales 5,356 5,389 100.6% % 24.0% 25.5% America Sales 4,369 4,416 101.1% % 19.6% 20.9% Europe Sales 8,762 7,796 89.0% % 39.2% 36.9% Asia& Sales 3,847 3,532 91.8% Others % 17.2% 16.7% Total Sal

  13. Slide 13: Sales volume construction (Destination Base, consolidated)

    １１ Sales volume construction（ construction（Destination Base, consolidated） consolidated） 90% Asia&Others（exclude Japan） 80% Europe America 70% 22% 18% 17% （86*） ） （35*） ） 60% 18% （100*） ） （65*） ） 20% 50% （80*） ） 35% 40% 37% 40% 34% （123*） ） 31% （157*） ） （192*） ） （77*） ） 30% （128*） ） 20% 10% 17% 20%

  14. Slide 14: Bookings by Market Segments (consolidated)

    １２ Bookings by Market Segments （consolidated） consolidated） Pharmaceutical, Toll Processing, 8% After-Sales and Material, Food and 29% Confectionary, 11% FY2015 1stH FY2014 FY2013 Chemical, 12% Market Segment Recycle & Environment, Toner, Electronics, 4% 3% Mineral & Metals, Blown film, 7% Polymer 1

  15. Slide 15: Selling, General and Administrative expense (consolidated)

    １３ Selling, General and Administrative expense（ expense（ｃonsolidated） onsolidated） (100 million yen) SGA SGA Ratio(％) FY2011 FY2012 FY2013 FY2014 FY2015 １ｓｔH SGA 6.68 billion yen（Year on year : +250 million yen, the influence of exchange rate : about 100 million yen） ⇒ added Hosokawa Micron Cosmetic

  16. Slide 16: Dividend & Payout Ratio

    １４ Dividend & Payout Ratio （yen） year-end 16.0 interim 1 5yen 1 5yen 70.0% 14.0 payout ratio 60.0% 12yen 12 yen 12.0 7.5 7.5 50.0% Payout Ratio 10.0 9 yen Dividend 6.0 40.0% 8.0 7 yen 5.0 30.0% 6.0 5 yen 5 yen 4.5 3.0 20.0% 4.0 3.0 7.5 7.5 6.0 10.0% 2.0 4.0 2.0 2.0 2.5 0.0 0.0% FY2009 FY2010 FY2011

  17. Slide 17: Progress of the 15th Midterm Management Plan

    ２．Progress of the 15th Midterm Management Plan (Oct.2014～Sep.2015) ◆Progress of the 15th Midterm Management Plan ◆Further strategies

  18. Slide 18: Basic strategies

    １５ Progress of the 15th Midterm Management Plan Maximize the Group Synergy and enhance revenue and profit, increasing our corporate value ～With 100 anniversary of the founding to mark the start of leaping, master technologies and contribute to make for the next generation ～ ◆ Consecutive development

  19. Slide 19: Important strategies

    １６ Progress of the 15th Midterm Management Plan Important strategies Plan FY2015 ◆ Development of innovative products and technologies, and expand to sell with group sales net. ◆ Construct the sales system for South American market and expand business for Southeast Asian market. ◆ Share information

  20. Slide 20: Group Synergy Effect

    １７ Progress of the 15th Midterm Management Plan ＜Point to expand the business＞ ＜Area＞ ＜Products＞ Developing New Products Countries New Technologies World wide promotion of the original products and the technologies Group Synergy Effect

  21. Slide 21: Progress of the 15th Midterm Management Plan (Consolidated)

    １８ Progress of the 15th Midterm Management Plan（ Plan（Consolidated） Consolidated） (100 million yen) FY2014 FY2015 FY2017 Actual Plan Forecast Plan Sales 485 500 465 550 Operating Profit 33 36 24 55 （on Sales） 6.9% 7.2% 5.2% 10.0% Ordinary Profit 34 36 25 55 （on Sales） 7.0% 7.2% 5.3% 10.0% Net Income

  22. Slide 22: New Products Sales Ratio

    １９ New Products Sales Ratio New Products Sales Ratio group HMC 25% 22.5% 21.3% 20.2% 20.2% 20% 18.8% 17.0% 16.4% 16.2% 18.4% 15.6% 15% 16.0% 16.9% 14.4% 15.1% 10% 12.1% 12.9% 9.3% 9.6% 5% 0% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 HY2015 1stH Target : 30% Sales in HMC new product aff

  23. Slide 23: Promotion to emerging market (Consolidated)

    ２０ Promotion to emerging market（ market（Consolidated） Consolidated） 【Plan and result（sales in emerging countries） 】 180 160 151.4 166.4 ＜1stH FY2015＞ 140 131.9 ◆Plan : 13.2 billion yen （100 million yen） 120 97.8 100 80 Developing Ratio： Ratio：20％ 20％ ⇔1stH Actual：4 billion yen 60 40 +6.8 billion yen

  24. Slide 24: The present problems: Delay in order securing

    ２１ The present problems Delay in order securing ＜Elements＞ ◆Less contribution of new products now and new technologies to the business ・ Stagnation of developing innovative products ・Ineffective introduction of new products to market, lack of PR ◆Imperfect sales promotion to emerging countries （geop

  25. Slide 25: In order to improve the present status: Powder Processing

    ２２ In order to improve the present status ＜Powder Processing＞ ◆Strengthen sales promotion in China and Southeast Asian markets ⇒・Make best use of Malaysian sales subsidiary Increase personnel and strengthen After Sales Business ・Intimate relationship with sales representatives ・Marketing Strategies（

  26. Slide 26: In order to improve the present status: Blown Film, Confectionary

    ２３ In order to improve the present status ＜Blown Film＞ ◆not only relying on American booming economy 【high technologies】＋【strong sales】 ＜Confectionary＞ ◆Converting target customers from world major companies to middle scale companies expand booking and improve profits ＋ 【Measures】 ◆Stagnating subsid

  27. Slide 27: Group Synergy Effect

    ２４ In order to improve the present status Group Synergy Effect ＋ 【Strategic business partnership】＝extra effect ・Acquire 100% ownership : Hosokawa Micron Cosmetic ・Acquisition : KOLB ＋ 【Quality & quantity of enquiry improved】 ＝driving force for booking in the 2nd half and the coming year ・recover boo

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