Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — 1H FY2010 Earnings Presentation
26 slides from Sumitomo Heavy Industries's earnings presentation, 2010
Slide 1: Part 1: Second Quarter Fiscal Summary and Projections for FY2010
Part 1: Second Quarter Fiscal Summary and Projections for FY2010 Sumitomo Heavy Industries, Ltd.
Slide 2: FY2010 Second Quarter Performance Summary
1-1 FY2010 Second Quarter Performance Summary ■ Key points Unit: JPY billion (1) Orders ・ Significant increase from same period last FY2010 FY2009 Change year 1H 1H ・ Driven by demand from China and the rest of Asia for Machinery components, Orders 243.8 179.7 64.1 Precision machinery and Constructi
Slide 3: Quarterly Transition of Orders and Net Sales
1-2 Quarterly Transition of Orders and Net Sales Unit: JPY billion Orders Net Sales Steady recovery in the areas of Machinery components, Growth was achieved in the areas of Machinery Precision machinery and Construction machinery was components, Precision machinery and Construction seen. On the oth
Slide 4: Operating Income by Segment
1-3 Operating Income by Segment ■ Comparison with previous year All segments returned to being profitable. Unit: JPY billion <Machinery components> PTC turned things around through cost reductions FY2010 FY2009 Change <Precision Machinery > 1H 1H Plastic injection molding machines trended positively
Slide 5: Quarterly Transition of Operating Income
1-4 Quarterly Transition of Operating Income Significant turnaround from the same period last year as all segments returned to profitability. Net Sales Operating income Unit: JPY billion 200 Others Unit: JPY billion Environmental facilities and plants 20 Ships Industrial machinery 156.8 Construction
Slide 6: Analysis of change in Operating Income (FY2009 1H to FY2010 1H)
Analysis of change in Operating Income 1-5 (FY2009 / 1H to FY2010 / 1H) Unit: JPY billion Improvement of cost of sales ratio, etc. ＋7.4 16.3 Impact of income Sales administrative reduction/increase costs, etc. ±0 ＋1.8 8.2 Impact of currency exchange fluctuations (1.1) FY2009 FY2010 1H 1H
Slide 7: Consolidated Balance Sheet
1-6 Consolidated Balance Sheet Unit: JPY billion September March September March Change 2010 2010 Change 2010 2010 Current assets 326.4 339.8 (13.4) Liabilities 333.1 355.9 (22.8) Cash and deposits Notes and accounts 117.0 108.0 9.0 45.1 62.5 (17.4) payable Notes and accounts 129.3 131.9 (2.6) Advan
Slide 8: Consolidated Cash Flow Statement
1-7 Consolidated Cash Flow Statement Unit: JPY billion Category FY2010 FY2009 Change 1H 1H Operating activities 14.4 23.2 (8.8) Income before income taxes and 14.3 7.1 7.2 minority interests Depreciation 8.7 9.6 (0.9) Working capital 1.4 7.3 (5.9) Others (income taxes etc.) (10.1) (0.7) (9.4) Invest
Slide 9: Performance Forecast for FY2010 by Segment
1-8 Performance Forecast for FY2010 by Segment ■ Key Points: (1) With the exception of Ships segment, the number of orders showed recovery particular in Machinery components and Precision machinery segments. However, it is unclear whether this recovery will continue into the future. (2) Net Sales of
Slide 10: Performance Forecast for FY2010
1-9 Performance Forecast for FY2010 ■ Key Points: (1) The full-year operating income forecast has been revised upwards due to improvements seen in operating income during the first half of the year. (2) Due to the improved forecast for net income, the full-year dividend is revised to increase from J
Slide 11: Part 2: Management Strategy
Part 2: Management Strategy
Slide 12: Transitions of Orders and Net Sales
2-1 Transitions of Orders and Net Sales Unit: JPY billion Orders Net Sales Recovery was seen in the areas of Machinery components and Growth was seen in the areas of Machinery components, Precision machinery. However, the environment for receiving Precision machinery and Construction machinery. In a
Slide 13: Order-receiving Environment for FY2010 by Segment
2-2 Order-receiving Environment for FY2010 by Segment ■ Although there was strong order demand for mass-produced machinery, there continues to be uncertainty in regards to the future outlook of the global economy. ■ For heavy machinery, the environment for receiving orders continues to be difficult
Slide 14: Machinery Components
2-3 Machinery Components Unit: JPY billion Power transmission & control: 50 Orders FY2010 / 1H: Strong demand from the infrastructure and resource sectors in emerging markets, especially in China. Domestically, demand for precision gear reducers used in 37.2 39.8 29.4 32.0 robots recovered. As a res
Slide 15: Precision Machinery
2-4 Precision Machinery 100 Unit: JPY billion Orders Plastic machinery: 78.5 FY2010 / 1H: The number of orders and net sales increased as 63.3 66.9 Advanced compared to the same period last year as demand from North Asian 50 42.8 37.4 45.6 precision 38.1 machinery markets, especially China, improved
Slide 16: Construction Machinery
2-5 Construction Machinery Orders Unit: JPY billion 100 Hydraulic excavators: 67.4 61.1 FY2010 / 1H: The number of orders and net sales increased as 54.0 11.6 compared to the same period last year due to various factors including 50 46.6 9.4 10.9 Mobile cranes the increase in demand from China for t
Slide 17: Industrial Machinery
2-6 Industrial Machinery Forging press & steel manufacturing machinery: 50 Unit: JPY billion Orders FY2010 / 1H: As conditions domestically remained tough, the Group did not achieve its orders target for the first half. Net sales figures were as per the forecast due to the number of outstanding orde
Slide 18: Ships
2-7 Ships 50 Unit: JPY billion Ships: Orders FY2010 / 1H: The market for tankers remained stagnant as ship owners continued their wait-and-see attitude. As a result, the number of new orders received during the first half of 2010 was zero. Sales of ships fell by one as compared to the same period la
Slide 19: Environmental Facilities and Plants
2-8 Environmental Facilities and Plants CFB boilers for IPP: 50 Unit: JPY billion Orders FY2010 / 1H: In overall terms the ordering environment was weak, highlighted by the fact 36.5 that the Group did not receive any new orders for boilers in the first half of the year. 33.1 3.2 Pressure 29.5 2.3 2
Slide 20: Overseas Sales
2-9 Overseas Sales Unit: JPY billion Overseas Sales by Regional Segment FY2010 / 1H Overseas Sales by Segment Environmental facilities and plants 4.2 Machinery components Unit: JPY billion (3%) Ships 14.3 400 27.7 (11%) Precision (21%) 340.8 machinery 29.3 36.4 302.1 (22%) 300 Industrial 8.0 28.7 33
Slide 21: Acquisition of Hansen Industrial Transmissions NV
2-10 Acquisition of Hansen Industrial Transmissions NV ■ Key points (1) In regards to the offer made to acquire Hansen Industrial Transmissions NV (HIT), a manufacturer and distributor of industrial gearboxes, the Group has entered into an exclusive discussion period that will run until March 2011.
Slide 22: Construction of New Plant in Brazil
2-11 Construction of New Plant in Brazil ■ Key points (1) The Group plans to construct a new plant that will become the main supply source for medium-to-large scale gear reducers targeted for the South American market. (2) Brazil has high resource demand with iron ore being a key commodity. In addit
Slide 23: Planned Expansion of Tangshan Plant
2-12 Planned Expansion of Tangshan Plant ■ Key points Through a total investment of JPY10.6 billion, the Group plans to increase the production capacity for medium-to-large scale gear reducers and hydraulic excavators at its Tangshan (Hebei Province, China) Plant that commenced operations in Februar
Slide 24: Business Expansion Investments
2-13 Business Expansion Investments September September 2010 2010 (China) (China) Regional Offices, etc. Construction Construction begins begins to to expand expand the the existing medium-to-large scale existing medium-to-large scale New Manufacturing Locations gear gear reducer reducer and and hyd
Slide 25: Management Policies
2-14 Management Policies 9 9 Abide Abide by by Management Management Discipline Discipline and and Financial Financial Discipline Discipline regulations, regulations, seek seek to to establish establish sustainable sustainable competitive competitive edge edge and and aim aim for for sound sound dev
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 — 1H FY2010 Earnings Presentation on 6ix