Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2024 Earnings Presentation
55 slides from Sumitomo Heavy Industries's earnings presentation, Feb 14, 2025
Slide 1: Financial Summary for FY2024, Revision of the Medium-Term Management Plan
Financial Summary for FY2024, Revision of the Medium-Term Management Plan 2025/2/14 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 1
Slide 2: Index
2025/2/14 INDEX 01 Financial Summary for FY2024 02 Performance Forecast for FY2025 03 Revision of the “Medium-Term Management Plan 2026” (MTMP26) 04 Appendix Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 2
Slide 3: Financial Summary for FY2024
2025/2/14 Change in Fiscal Year End of FY 2022 (Financial Year End) 01 Financial Summary for FY2024 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 3
Slide 4: Financial Summary at a Glance
2025/2/14 01 Financial Summary at a Glance 1 Orders : JPY936.1 billion / 1,008.7 billion (72.5) billion Actual 2 Net sales : JPY1,071.1 billion / 1,081.5 billion (10.4) billion FY2024 /Same period of previous fiscal year 3 Operating profit : JPY55.1 billion / 74.4 billion (19.3) billion (change) 4 R
Slide 5: Financial Summary
2025/2/14 01 Financial Summary Extraordinary losses totaling JPY27.5 billion were recognized, resulting in a current profit of JPY7.7 billion. FY2024 Year-on-year Actual comparison FY2023 Cumulative change (Full year) 1Q 2Q 3Q 4Q Unit: JPY billion total (Cumulative total) Orders 1,008.7 221.1 232.0
Slide 6: Recording of Extraordinary Losses in FY2024
2025/2/14 01 Recording of Extraordinary Losses in FY2024 Timing of Amount of Location of head Expense item Details of loss Amount of loss acquisition/investment acquisition/investment office Segment Fixed assets including 1 JPY23.2 billion June 2018 JPY 21.4 billion Italy Mechatronics goodwill relat
Slide 7: Analysis of Changes in Operating Profit for FY2023/2024
2025/2/14 01 Analysis of Changes in Operating Profit for FY2023/2024 Unit: JPY billion Effect of sales Effect of Selling & Others increases/decreases exchange rates administrative expenses Effect of sales increases/decreases by segment Unit: JPY billion Mechatronics (6.6) Industrial Machinery (0
Slide 8: Financial Summary by Segment
2025/2/14 01 Financial Summary by Segment - Orders : Decreased due to the continuation of a drop in demand for hydraulic excavators and semiconductor-related products. - Net sales : Decreased across all segments other than Industrial Machinery due to a reduction in orders. - Operating profit : A dec
Slide 9: Consolidated Balance Sheet
2025/2/14 01 Consolidated Balance Sheet Unit: JPY billion December 2023 December 2024 Change Unit: JPY billion December 2023 December 2024 Change Current Assets 748.3 784.5 36.2 Liabilities 573.4 613.8 40.4 Cash and deposits 104.5 111.1 6.7 Notes and accounts 180.8 153.2 (27.7) Notes and accounts pa
Slide 10: Consolidated Cash Flows Statement
2025/2/14 01 Consolidated Cash Flows Statement Unit: JPY billion Item FY2023 FY2024 Change FY2020 FY2021 FY2022 FY2023 FY2024 Operating Activities 65.4 12.8 (52.6) Profit before income taxes 51.4 21.7 (29.7) Free cash flow (JPY billion) 20.4 12.0 (15.9) 22.1 (36.7) Depreciation & amortization 36.4 3
Slide 11: Performance Forecast for FY2025
2025/2/14 Change in Fiscal Year End of FY 2022 (Financial Year End) 02 Performance Forecast for FY2025 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 11
Slide 12: Forecast FY2025: Summary
2025/2/14 02 Forecast FY2025: Summary 1 Orders : JPY1,130.0 billion Forecast 2 Net sales : JPY1,090.0 billion FY2025 3 Operating profit : JPY Profit attributable to owners 60.0 billion / of parent: JPY28.0 billion 4 ROIC : 5.0％ Will increase across all segments, driven by a recovery in markets for h
Slide 13: Performance Forecast for FY2025
2025/2/14 02 Performance Forecast for FY2025 Actual FY2024 Forecast FY2025 Year-on-year change Unit: JPY billion (2024.1-2024.12) (2025.1-2025.12) Orders 936.1 1,130.0 193.9 Net sales 1,071.1 1,090.0 18.9 Operating profit 55.1 60.0 4.9 Operating profit ratio 5.1% 5.5% 0.4pt Ordinary profit 49.2 53.0
Slide 14: Analysis of Changes in Operating Profit for FY2024/2025
2025/2/14 02 Analysis of Changes in Operating Profit for FY2024/2025 Unit: JPY billion FY2024 Effect of sales Effect of Selling & Others FY2025 administrative increases/decreases exchange rates expenses Effect of changes in sales by segment Unit: JPY billion Mechatronics 4.0 Industrial Machinery
Slide 15: Performance Forecast by Segment for FY2025
2025/2/14 02 Performance Forecast by Segment for FY2025 Orders Net sales Operating profit Actual Actual Actual Actual FY2024 Forecast Actual FY2024 Forecast Actual FY2024 Forecast FY2024 /Operating profit FY2025 Change Change Change FY2024 (After FY2025 FY2024 (After FY2025 /Operating ratio (%) /Ope
Slide 16: Mechatronics Segment
2025/2/14 02 Mechatronics Segment Actual FY2024 (before reconfiguration) (year-on-year changes) Forecast FY2025 (After reconfiguration) (year-on-year changes) Orders Orders Increase due to a recovery in market Demand for small and medium-sized gear reducers conditions in Japan and Europe, as wel
Slide 17: Industrial Machinery
2025/2/14 02 Industrial Machinery Actual FY2024 (before reconfiguration) (year-on-year changes) Forecast FY2025 (After reconfiguration) (year-on-year changes) <Plastics machinery> Remained unchanged year on year, as investment Orders cooling persisted in Europe, despite demand for electrical and
Slide 18: Logistics & Construction
2025/2/14 02 Logistics & Construction Actual FY2024 (year-on-year changes) Forecast FY2025 (year-on-year changes) Orders <Hydraulic excavator>Demand reduced in the rental markets in the US and Japan. Orders <Hydraulic excavator> Increase due to a recovery in the US market. <Other> Mobile cranes
Slide 19: Energy & Lifeline
2025/2/14 02 Energy & Lifeline Actual FY2024 (year-on-year changes) Forecast FY2025 (year-on-year changes) Orders The energy plant business saw an increase due to a rise in Orders For the energy plant business, we anticipate an increase in biomass projects for biomass power generation plants in
Slide 20: Revision of the Medium-Term Management Plan 2026 (MTMP26)
2025/2/14 03 Revision of the “Medium-Term Management Plan 2026” (MTMP26) Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 20
Slide 21: Basic Policy and Key Framework of Medium-Term Management Plan 2026
2025/2/14 03 Basic Policy and Key Framework of “Medium-Term Management Plan 2026” Increase corporate value in a sustainable manner by solving social issues through products and services Concept 2021～23 2024～26 2027～29 2030 of long- term policy Lay groundwork for Build a business portfolio to solve s
Slide 22: Revision of Targets (1): Changes in the Business Environment
2025/2/14 “Medium-Term Management Plan 2026” - Revision of Targets (1): 03 Changes in the Business Environment The Medium-Term Management Plan 2026 was developed by backcasting from the ideal state and goals for 2030. However, our recent performance has been below expectations partly due to a change
Slide 23: Revision of Targets (2): Revised Figures and Response Strategies
2025/2/14 “Medium-Term Management Plan 2026” - Revision of Targets (2): 03 (Revised Figures and Response Strategies) Changes 120 Operating Initial plan After revision Initial plan Revised figure publicized profit Actual/plan Operating profit ratio 100.0 Target JPY100.0 billion JPY 80.0 billion 100 G
Slide 24: Revision of Targets
2025/2/14 03 “Medium-Term Management Plan 2026” - Revision of Targets Orders are sluggish due to changes in the business environment, and the profitability of existing businesses has declined. →Considering the current business environment and financial condition, we will revise the targets of the Me
Slide 25: Reconfiguration of the Models That Constitute the Segments
2025/2/14 “Medium-Term Management Plan 2026” - Reconfiguration of the Models 03 That Constitute the Segments Businesses within the segments have been configured to streamline segment management and promote synergy The component business and the semiconductor equipment business have been integrated
Slide 26: Change in Targets by Segment
2025/2/14 03 “Medium-Term Management Plan 2026” - Change in Targets by Segment FY2026 target FY2026 target Previously announced [After segment reconfiguration] After revision Change (as of February 2025) (as of February 2024) Operating Operating Operating Orders Net sales ROIC Orders Net sales ROIC
Slide 27: Review of the First Year of MTMP26 and Future Response Strategies
2025/2/14 Review of the First Year of the “Medium-Term Management Plan 2026” and Future 03 Response Strategies - The results of FY2024, the first year of the Medium-Term Management Plan were far below the initial plan, and our profitability has degraded. - To bridge the gap between the to-be state b
Slide 28: Structural Reorganization and Roadmap for the European Business
February 14, 2025 “Medium-Term Management Plan 2026” - Structural Reorganization and 03 Roadmap for the European Business Reform measure 2025 2026 Closing certain plants Secure the profitability of the electric 1. Reduce costs by closing and integrating certain plants L control business and reach
Slide 29: Enhancement of Semiconductor-related Businesses
2025/2/14 “Medium-Term Management Plan 2026” - 04 Enhancement of Semiconductor-related Businesses Determine specific details of initiatives and accelerate them, focusing primarily on Europe, North America, and Japan/Asia North America Europe Evaluation and Development Center Collaboration with LASSE
Slide 30: Progress of Business Portfolio Reformation
2025/2/14 03 “Medium-Term Management Plan 2026” - Progress of Business Portfolio Reformation Rebuild strategies for low-growth, low-profit businesses, focus management resources on four key investment areas with anticipated growth, and strive to expand these businesses. Businesses to be developed th
Slide 31: Capital Policy
2025/2/14 03 “Medium-Term Management Plan 2026” - Capital Policy Regarding the shareholder return policy, the following policy will remain in place. (1) Maintain a minimum dividend of JPY125 throughout the MTMP26 period and aim to achieve a DOE of 3.5% in the final fiscal year of the plan. (2) For s
Slide 32: Strengthening the Business Base (Sustainability)
2025/2/14 “Medium-Term Management Plan 2026” - Strengthening the Business Base 03 (Sustainability) “Medium-Term By strengthening measures to achieve SDGs and the Group’s goal of achieving carbon Management Plan 2026” neutrality by 2050, as well as transforming risks associated with changes in the so
Slide 33: Mechatronics: Initiatives for FY2025 and FY2026 (1)
2025/2/14 “Medium-Term Management Plan 2026” - Mechatronics: Initiatives for 03 FY2025 and FY2026 (1) Target profit for Basic strategy of the “Medium-Term Management Plan 2026” FY2026 JPY24.0 billion Key investment areas: Expand high-growth and high-profit sectors, and drive sales expansion in tar
Slide 34: Mechatronics: Initiatives for FY2025 and FY2026 (2)
2025/2/14 “Medium-Term Management Plan 2026” - Mechatronics: Initiatives for 03 FY2025 and FY2026 (2) Robotics/automation smartris KeiganALI ・TUAKA smartris/KeiganALI/TUAKA/SCY (Drive module) ・SCY (Electric module for Integrate the gear, motor, and driver into a robot drives) single package. Enhan
Slide 35: Industrial Machinery: Initiatives for FY2025 and FY2026 (1)
2025/2/14 “Medium-Term Management Plan 2026” - Industrial Machinery: Initiatives for 03 FY2025 and FY2026 (1) Target profit for FY2026 Basic strategy of the “Medium-Term Management Plan 2026” JPY22.0 billion Key investment areas: Achieve decisive victories in sectors where we hold a competitive ed
Slide 36: Industrial Machinery: Initiatives for FY2025 and FY2026 (2)
2025/2/14 “Medium-Term Management Plan 2026” - Industrial Machinery: Initiatives for 03 FY2025 and FY2026 (2) Semiconductors Service Ion Implanters for power semiconductors (SMIT) Plastics machinery Finalize the high-temperature implantation technology - Manage sales and project activities for m
Slide 37: Logistics & Construction: Initiatives for FY2025 and FY2026 (1)
2025/2/14 “Medium-Term Management Plan 2026” - Logistics & Construction: Initiatives for 03 FY2025 and FY2026 (1) Target profit for FY2026 Basic strategy of the “Medium-Term Management Plan 2026” JPY27.0 billion Key investment areas: Promote the development of cutting-edge technologies, such as el
Slide 38: Logistics & Construction: Initiatives for FY2025 and FY2026 (2)
2025/2/14 “Medium-Term Management Plan 2026” - Logistics & Construction: Initiatives for 03 FY2025 and FY2026 (2) Robotics/automation 13.5-ton electric hydraulic excavator Development of the 13.5-ton machine is ongoing, following the completion of the 7.5-ton machine, and it is scheduled for sale.
Slide 39: Energy & Lifeline: Initiatives for FY2025 and FY2026 (1)
2025/2/14 “Medium-Term Management Plan 2026” - Energy & Lifeline: Initiatives for 03 FY2025 and FY2026 (1) Target profit for FY2026 Basic strategy of the “Medium-Term Management Plan 2026” JPY7.0 billion Key investment areas: Promote the fostering and commercialization of the next-generation core
Slide 40: Energy & Lifeline: Initiatives for FY2025 and FY2026 (2)
February 14, 2025 “Medium-Term Management Plan 2026” - Energy & Lifeline: Initiatives for 03 FY2025 and FY2026 (2) Energy plants (boilers) Make fuel conversion proposals to help customers with fossil fuel boilers achieve decarbonization (through TMU) 100-300-MW Services (fuel conversion modificati
Slide 41: Appendix
2025/2/14 04 Appendix Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 41
Slide 42: Corporate Strategy: Strengthening the Business Base (Sustainability)
2025/2/14 04 Corporate Strategy: Strengthening the Business Base (Sustainability) Signing the UN Global Compact* Human rights due diligence • We signed to clearly demonstrate our commitment to • A working environment survey of employees at the Group’s sustainability management manufacturing sites (3
Slide 43: Corporate Strategy: Efforts toward Carbon Neutrality
2025/2/14 04 Corporate Strategy: Efforts toward Carbon Neutrality We will review our energy consumption to achieve carbon neutrality. Additionally, we are developing and considering products to reduce CO2 emissions during their use Scope1・2 Implementing existing energy-saving measures continuously
Slide 44: Corporate Strategy: Global Strategy
2025/2/14 04 Corporate Strategy: Global Strategy = Regional Construction machinery supervisory 190.0 company 162.8 Environment/energy SHI-USA SHI-Europe (Regional supervisory company) (Regional supervisory company) Sumitomo Heavy Liquid Air Energy Storage 2023 2026 Industries (LAES) Port crane Ion i
Slide 45: Corporate Strategy: DX Strategy
2025/2/14 04 Corporate Strategy: DX Strategy A company that contributes to an affluent society through core technologies and realizes CSV Ideal state in 2030 Strengthening business profitability Solving social issues Utilize digital solutions to optimize work environments globally and ensure the sat
Slide 46: Changes in ROIC by Segment
2025/2/14 04 Changes in ROIC by Segment Forecast targets for Segment Actual FY2024 Issues to be addressed Future response strategies FY2025 FY2026 - Improving the revenue of the electric Mass-produce new products, implement price pass- control business (in Europe) through measures, and improve the i
Slide 47: Segment Strategy: Main KPIs (Electric Control Business)
2025/2/14 04 Segment Strategy: Main KPIs (Electric Control Business) Trends in sales of Lafert and Invertek Invertek (inverter) 1,200 JPY10.0 Offers a wide range of solutions to address energy conservation, billion environmental regulations and other issues 1,000 Expanded an application center and
Slide 48: Segment Strategy: Main KPIs (Semiconductor Business)
2025/2/14 04 Segment Strategy: Main KPIs (Semiconductor Business) Total sales from semiconductor related 3-4Q businesses (approximate numbers) 1-2Q The Company's components, equipment and key 通期 Full year technologies in the semiconductor field Unit: JPY billion Key technologies Product Segment Beam
Slide 49: Segment Strategy: Main KPIs (After-sales Service Business)
2025/2/14 04 Segment Strategy: Main KPIs (After-sales Service Business) [After-sales service business target for 2026]: Net sales of JPY250.0 billion Service sales for SHI Group (JPY billion) [Current situation and issues] 300 250.0 - Strengthen the engineering and manufacturing system for modificat
Slide 50: Changes in Financial Values (Consolidated)
2025/2/14 04 Changes in Financial Values (Consolidated) Changes in Orders/Sales/Operating Profit Unit: JPY billion Changes in ROIC Orders Net sales Operating profit (Ref.) Changes in ROE (Before (After (Before (After (Before (After reconfiguration) reconfiguration) reconfiguration) reconfigurati
Slide 51: Reference information on each segment [1]
2025/2/14 04 Reference information on each segment [1] <Mechatronics> -Gear reducer business : Sales contribution ratio by model (approximate numbers) For use in Gear motor Gear box precision Electric Service Total (middle size) (large size) equipment control (MCD) FY2024 40％ 20％ 10％ 10％ 20％ 100％ FY
Slide 52: Reference information on each segment [2]
2025/2/14 04 Reference information on each segment [2] <Logistics & Construction> - Hydraulic excavators: demand by region/changes in sales (approximate numbers) *Only foreign capital North Asia Unit: 10,000 units (upper row) Europe (Excluding China* Japan Others Total JPY billion (lower row) Americ
Slide 53: Capital Investment, Depreciation, R&D, Personnel, Forex Sensitivity
2025/2/14 04 Capital Investment, Depreciation Cost, Research & Development Cost, Personnel, Forex Sensitivity Research & *Actuals are based on Unit: JPY billion Capital investment* *Actuals are based on cash flow. Depreciation & amortization P/L. Forecast is based Forecast is based on budget. develo
Slide 54: Sales by Regional Segment
2025/2/14 04 Sales by Regional Segment Actual FY2024 (2024.1-2024.12) <Exchange rate: JPY147 per US dollar> North America Europe Asia (Excluding China Others Overseas total Japan Total sales :Unit JPY billion China) Mechatronics 43.8 42.2 20.7 14.4 17.5 138.6 67.5 206.1 (plastics machinery) 10.3 21.
Slide 55: Forward-looking statements
2025/2/14 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 subjec
Sumitomo Heavy Industries — FY2024 Earnings Presentation on 6ix