Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — 2Q FY2018 Earnings Presentation
27 slides from Sumitomo Heavy Industries's earnings presentation, November 2018
Slide 1: Financial Summary for 2Q-FY2018 and Projections for FY2018
Financial Summary for 2Q-FY2018 And Projections for FY2018 November 2018 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 2: Index
November 2018 INDEX 01 Financial Summary for 2Q-FY2018 02 Performance Forecast for FY2018 03 Progress Status of “Medium-Term Management Plan 2019” Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 2
Slide 3: Financial Summary for 2Q-FY2018
November 2018 01 Financial Summary for 2Q-FY2018 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 3
Slide 4: Financial Summary
November 2018 01 Financial Summary Unit: JPY billion FY2017 1H FY2018 1H Change ■ Main Points (1) Orders ・Recorded historical high Orders 385.8 461.4 75.6 ・Y to Y increases in all segments ・Strong results in mass production machinery Net Sales 355.3 423.7 68.3 business such as construction machinery
Slide 5: Operating Income by Segment
November 2018 01 Operating Income by Segment Unit: JPY billion ■ Comparison with Previous Fiscal Year FY2017 FY2018 Change ＜Machinery components＞ 1H 1H In spite of sales increase thanks to steady market conditions, decrease due to deteriorated Machinery profitability of large–scale gear reducers com
Slide 6: Analysis of Changes in Operating Income
November 2018 01 Analysis of Changes in Operating Income Unit: JPY billion Effect of foreign exchange Selling, general and Others Effect of increased revenue administrative expenses Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 6
Slide 7: Consolidated Balance Sheet
November 2018 01 Consolidated Balance Sheet Unit: JPY billion March September March September Change Change 2018 2018 2018 2018 Current Assets 551.6 565.8 14.2 Liabilities 449.9 476.0 26.1 Notes and accounts Cash and deposits 88.2 95.4 7.2 payable 184.2 192.6 8.4 Notes and accounts Advanced payments
Slide 8: Overseas Sales by Regional Segment
November 2018 Ref. Overseas Sales by Regional Segment Unit：JPY billion Total Hydraulic Excavators 1H-FY2017 1H-FY2018 1H-FY2017 1H-FY2018 (April - September) (April - September) (April - September) (April - September) Sales Sales Ratio Sales Sales Ratio Sales Sales Ratio Sales Sales Ratio North Amer
Slide 9: Performance Forecast for FY2018
November 2018 02 Performance Forecast for FY2018 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 9
Slide 10: Performance Forecast for FY2018
November 2018 02 Performance Forecast for FY2018 ■Upward revision of full-year forecast thanks to continued strong orders ■Increased profits lead to dividend increase from beginning-of-the-year level Unit: JPY billion Actual Actual [Ref.]Forecast Forecast Actual FY2017 FY2018 (at FY2018 (at 1H-FY201
Slide 11: Machinery Components
November 2018 02 Machinery Components 1H of FY2018 ： Both orders and sales recorded Y on Y increase thanks to steady market conditions for medium-to-small scale gear reducers as well as for precision gear reducers for robot applications in Europe and China and also thanks to consolidation of Lafert
Slide 12: Precision Machinery
November 2018 02 Precision Machinery ＜ Plastic Machinery ＞ 1H of FY2018 ： Y on Y increase in both orders and sales thanks to continued high demands from electric and electronic industries in China. FY2018 ： In spite of prospects of continued strong market, high demands from electric and electronic i
Slide 13: Construction Machinery
November 2018 02 Construction Machinery ＜ Hydraulic Excavators ＞ 1H of FY2018 ： Y on Y increase in both orders and sales thanks to growth in demands from China and abroad. FY2018 ： Market conditions are projected to stay favorable. We will further drive productivity enhancement and cost reduction ef
Slide 14: Industrial Machinery
November 2018 02 Industrial Machinery 1H of FY2018 ： Orders increased Y on Y since material handling system business saw increased orders thanks to strong demands from steel industry although orders for industrial turbines decreased Y on Y. Sales increased year on year since forging press industry e
Slide 15: Ships
November 2018 02 Ships 1H of FY2018 ： We received orders for ship repair, no order for new vessels as with the same period last year due to continued stagnant market conditions. While we delivered three vessels in the same period last year, this period saw delivery of two vessels. FY2018 ： Sluggish
Slide 16: Environmental Facilities and Plants
November 2018 02 Environmental Facilities and Plants 1H of FY2018 ： Although energy plant business saw Y on Y decline in orders for biomass power generation equipment, both orders and sales recorded Y on Y increase thanks to consolidation of SFW into our Group. Meanwhile, in spite of Y on Y increase
Slide 17: Performance Forecast for FY2018 by Segment
November 2018 02 Performance Forecast for FY2018 by Segment Unit: JPY billion Actual Actual Actual [Ref.]Forecast 1H-FY2017 1H-FY2018 FY2017 Forecast FY2018 FY2018(at 2018.5) Orders 56.1 68.3 115.1 115.0 135.0 Machinery Net Sales 51.2 62.4 109.4 117.0 133.0 Components Operating Income 5.3 4.5 11.8 1
Slide 18: Progress Status of Medium-Term Management Plan 2019
November 2018 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)
November 2018 03 Progress Status of “MTMP19” (Overall) Actual Forecast Plan “MTMP19” Plan FY2017 FY2018 FY2019 Numerical targets FY2019 JPY791.0 b JPY890.0 b JPY900.0 b Net sales:JPY800 billion 8.8% 7.9% 8.0% Operating Income Ratio:7.5％ JPY69.9 b JPY70.0 b JPY72.0 b ROIC: 7.5% or more 10.3％ 9.8% 9.5
Slide 20: Progress Status of MTMP19
November 2018 03 Progress Status of “MTMP19” ■Midterm targets adjusted upward in May, 2018 due to generally strong market conditions worldwide, and this time adjusted further upward thanks to strong orders Operating income ＆ Sales income ratio Unit: JPY billion Unit: JPY billion Projection Plan revi
Slide 21: Progress Status of MTMP19 (Basic Concept)
November 2018 03 Progress Status of “MTMP19” (Basic Concept) Basic Concept Specific Developments Achieve growth globally (especially for high-volume products) 1. Achieve “Steady Growth” Accelerate new product development and their introduction to the marketplace Undertake investments (development/pl
Slide 22: New Product 'Magic Rack'
November 2018 03 Basic Policy①－１ ＜New Product ‘Magic Rack’ ＞ Newly developed high-density pallet storage system, ‘Magic Rack’. ‘Space renovation’ enabled by industry-leading storage efficiency ‘Work style reform’ for forklift operators enabled by automatic warehousing and shipping function ・Twice st
Slide 23: Biogas Power Generation Using Anaerobic Treatment of Waste Liquid/Sewage
November 2018 Basic Policy ①－２ ＜Biogas Power Generation Using 03 Anaerobic Treatment of Waste Liquid/Sewage＞ ・Received order for biomass fuel production system using paper industry sewage Sewage from kraft pulp production at Mishima Mill of Daio Paper Corporation will be purified through anaerobic t
Slide 24: More Focus on Aftermarket Business
November 2018 03 Basic Policy③ ＜More Focus on Aftermarket Business＞ Service technical center for gear reducers opened in Nagoya • Opened as center for support and development of gear reducer service technologies and skills, in a location adjacent to Nagoya Works (Obu city, Aichi prefecture), mother
Slide 25: Organizational Integrations and Alliances
November 2018 03 Basic Concept 4 Organizational Integrations and Alliances Unit: JPY billion Actual Forecast New Consolidated 1H-FY2018 FY2018 Segment Companies Net Net Orders Orders Sales Sales Machinery Components Lafert Group 5.8 6.2 15.0 15.0 Precision Machinery Persimmon Technologies 0.5 0.7 1.
Slide 26: Active Promotion of CSR
November 2018 03 Basic Policy⑤ Active Promotion of CSR Achieved Tasks ・Creation of customer value of our ・Reconsidering our missions and identifying Products products/services with additional focus on social issues that can be solved with our /Services social issues products/services ・Reducing envir
Slide 27: Forward-looking statements
November 2018 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 su
Sumitomo Heavy Industries — 2Q FY2018 Earnings Presentation on 6ix