Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2008 Earnings Presentation
26 slides from Sumitomo Heavy Industries's earnings presentation, May 2009
Slide 1: Part I: Financial Summary for FY2008 and Projections for FY2009
Sumitomo Heavy Industries, Ltd. Part I: Financial Summary for FY2008 and Projections for FY2009 May 2009
Slide 2: Financial Summary for FY2008
1-1 Financial Summary for FY2008 ■ Key points Unit: JPY billion <Orders> Although a new record was set for orders in the first half of the fiscal year, a FY2008 FY2007 Change significant drop occurred in all market segments during the second half. Orders 600.7 716.4 △115.7 <Net sales> Although a new
Slide 3: FY2008 Quarterly Transition of Orders and Net Sales
1-2 FY2008 Quarterly Transition of Orders and Net Sales Unit: JPY billion Orders Net sales A rapid drop in the amount of orders taken began in Reduction in orders received for mass-produced machinery and the third quarter. construction machinery had a significant impact, but heavy machinery maintain
Slide 4: Operating Income by Segment
1-3 Operating Income by Segment ■ Mass-produced machinery A significant reduction in income Unit: JPY billion occurred due to the rapid deterioration of the market for PTC and plastics machinery. Plastics machinery recorded FY2008 FY2007 Change losses for the entire fiscal term. Mass-produced Precis
Slide 5: Breakdown of Extraordinary Income or Loss
1-4 Breakdown of Extraordinary Income or Loss Unit: JPY billion Breakdown FY2008 FY2007 Change Extraordinary Profits made by selling invested securities - 0.7 △0.7 income Total - 0.7 △0.7 Losses incurred from selling invested 6.0 - 6.0 Extraordinary securities loss Goodwill amortization 4.9 - 4.9 Bu
Slide 6: Analysis of Change in Operating Income (FY2007 to FY2008)
1-5 Analysis of Change in Operating Income (FY2007 to FY2008) Unit: JPY billion 77.8 Impact of income reduction Rise in △4.9 Variation of Other material costs inventory improvements △5.8 Currency valuation ＋4.7 56.9 exchange rate △2.0 fluctuations Sales △7.5 administrative costs △5.4 FY2007 FY2008 M
Slide 7: Consolidated Balance Sheet
1-6 Consolidated Balance Sheet Unit: JPY billion End March End March Change End March End March Change 2009 2008 2009 2008 Current assets 380.3 381.9 △1.7 Liabilities 418.7 432.3 △13.5 Cash and deposits 44.7 30.3 14.4 Notes and 136.1 167.0 △30.9 accounts payable Notes and 155.7 185.9 △30.2 Advance p
Slide 8: Consolidated Statement of Cash Flow
1-7 Consolidated Statement of Cash Flow Unit: JPY billion Category FY2008 FY2007 Change Operating activities 34.7 29.1 5.6 Working capital △14.0 △25.5 11.5 Operating income before interest payments and 69.0 86.4 △17.4 accounting of amortizations and depreciations Others △20.3 △31.8 11.5 Investing ac
Slide 9: FY2009 Forecast of Business Performance by Segments
1-8 FY2009 Forecast of Business Performance by Segments ■ Key points (1) Orders hit bottom during the second half of FY2008. Orders are expected to level off during the first half of FY2009 and start to show a recovery towards the second half. (2) Net sales are expected to hit bottom during the firs
Slide 10: FY2009 Forecast of Business Performance
1-9 FY2009 Forecast of Business Performance ■ Key points (1) Operating income is expected to drop in all segments, particularly for mass-produced machinery and construction machinery, for which losses are anticipated. (2) A loss for the current term is anticipated in the first half of the fiscal yea
Slide 11: Financial Discipline
1-10 Financial Discipline ■ Management Fundamental: Securing Sound Finances The following action was implemented promptly beginning in the second half of FY2008: １ Announcement of Emergency Financial Measures October 2008 ① Increase thoroughness of credit management ② Thoroughly implement inventory
Slide 12: Part II: Management Strategy
Part II: Management Strategy May 2009
Slide 13: Medium-term Management Plan: Perception of Current Status
2-1 Medium-term Management Plan: Perception of Current Status Global 21 Perception of current status Financial ¾ Net sales of JPY850.0 billion 9 Realization of quantitative targets set in targets for ¾ Operating income of “Global 21” is extremely difficult. FY2010 JPY100.0 billion Keywords ¾ Globali
Slide 14: Business Performance Transition
2-2 Business Performance Transition Record for FY2008: Figures fell below those of the previous year, with net sales of JPY642.9 billion and operating income of JPY56.9 billion. Outlook for FY2009: Significant reduction in figures, with net sales of JPY530 billion and operating income of JPY14 billi
Slide 15: Management Discipline
2-3 Management Discipline ■ Management fundamental: Self-subsistence and cooperation Self-subsistence Self-subsistence (autonomy) (autonomy) andand cooperation cooperation (value (value chain) chain) of of individual individual corporate corporate organizations, organizations, affiliated affiliated
Slide 16: Measures Implemented in Response to Fluctuation of Demand Structures
2-4 Measures Implemented in Response to Fluctuation of Demand Structures FY2008 Plan for FY2009 (1) Plastics machinery business unit ・ Early start of operations at our manufacturing plant in ・ Business restructuring of Demag (reorganization of Tangshan, China. business into autonomous organization)
Slide 17: Implementation of Measures by Segment for FY2009
2-5 Implementation of Measures by Segment for FY2009 Unit: JPY billion FY2008 performance FY2009 forecast Segment Orders Net Operating Measures Orders Net Operating income income sales sales Power ・ Enhancement of cost competitiveness through aggressive transmission utilization of manufacturing plan
Slide 18: Mass-produced Machinery
2-6 Mass-produced Machinery Unit: JPY billion Power transmission & control: Orders FY2008: Rapid deterioration in the economic climate impacted business, resulting 150 in reductions both in orders received and sales for almost all product models, 132.4 except for larger models. Profit ratio also suf
Slide 19: Environmental Protection Facilities, Plants and Others
2-7 Environmental Protection Facilities, Plants and Others Energy plants: 100 Orders Unit: JPY billion FY2008: The amount of orders received remained at about the same level as the previous fiscal term, as orders were received for 60.0 industrial power generating boilers and atmospheric pollution 4.
Slide 20: Ship, Steel Structures and Other Specialized Equipment
2-8 Ship, Steel Structures and Other Specialized Equipment Ships: Unit: JPY billion Orders FY2008: Due to the impact of the rapidly deteriorating market conditions, 100 only seven ships were on order, in the first half of the fiscal year. The sales amount resulted in eight vessels, an increase by on
Slide 21: Industrial Machinery
2-9 Industrial Machinery Material handling systems: Unit: JPY billion FY2008: The amount of orders received dropped in comparison with the previous fiscal term, due to the drop in orders received from shipbuilding 100 Orders Material handling companies, although orders received from steel companies
Slide 22: Construction Machinery
2-10 Construction Machinery Unit: JPY billion Hydraulic excavators: FY2008: A significant reduction occurred in both the amount of orders 150 Orders received and sales, due to a rapid decline in global demand during the 97.5 second half of the fiscal term. In regional terms, all regions except China
Slide 23: Global Sales Plan
2-11 Global Sales Plan Unit: JPY billion *Bar graphs do not include figures for ships Europe China 100 150 100 North America 50 100 Construction 50 machinery Steel 0 50 structures 0 04 05 06 07 08 09 04 05 06 07 08 09 Mass- produced 0 100 04 05 06 07 08 09 machinery 100 India Other Asian countries I
Slide 24: Progress of Tangshan Manufacturing Plant
2-12 Progress of Tangshan Manufacturing Plant ■ Construction and operation schedule 2009 January 15 Completion of construction for factories of construction machinery and large-scale power transmission systems February 16 Shipping of first large-scale power transmission system End of April Start of
Slide 25: Management Policies
2-13 Management Policies 9 Abide Abide by by the the Management Management Discipline Discipline and and Financial Financial Discipline Discipline regulations, regulations, seek seek to to establish establish aa sustainable sustainable competitive competitive edge, edge, and and aim aim for for soun
Slide 26: Forward-looking statements
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 subject to chang
Sumitomo Heavy Industries — FY2008 Earnings Presentation on 6ix