Slide 1: 1Q FY2023/12 Results Briefing
Tokyo Stock Exchange Prime Market 6143 1Q FY2023/12 Results Briefing Sodick Co., Ltd. May 11, 2023
Slide 2: Agenda
I. 1Q FY23/12 Financial Results Summary II. FY23/12 Financial Results Projections (References) 2
Slide 3: Financial Results Highlights
Financial Results Highlights Sales declined due to lower sales in Greater China. Profitability also declined 1Q FY2023 Sales: 16.8 billion yen down 13.9% YoY OP: 0.3 billion yen down 83.3% YoY Strong demand for CASE-related products, but sluggish demand for Machine smartphones and electronic compone
Slide 4: Financial Results Highlights
Financial Results Highlights Net sales decreased by 14% due to a significant decline in machine tool sales in Greater China. Decreased profits due to lower factory profitability due to production adjustments, soaring of raw material and energy prices, and higher personnel expenses. FY2019 FY2020
Slide 5: Details of Changes in Operating Profit
Details of Changes in Operating Profit Gross profit significantly decreased due to lower sales and lower operating rates resulting from production adjustments at plants. In SG&A expenses, personnel expenses increased due to an increased number of recruits and salary revisions in line with the ex
Slide 6: Ratio of Operating Profit to Net Sales (Quarterly)
Ratio of Operating Profit to Net Sales (Quarterly) OPM Sales of electrical Machine tool sales in discharge machines Net sales decreased Recovery from a fall China fell sharply (EDMs) was sluggish due to the spread of due to COVID-19 Operating rates and owing to U.S.–China COVID-19 profit margins low
Slide 7: Financial Results by Segment
Financial Results by Segment FY2018 FY2019 FY2020 FY2021 FY2022 YoY (million yen) Change 1Q 1Q 1Q 1Q 1Q Machine tool 13,362 8,238 10,382 14,096 12,227 -13.3% segment Industrial machinery 2,320 2,556 1,893 2,625 2,393 -8.9% segment Food machinery 1,776 782 580 1,021 998 -2.2% segment Other segments 1
Slide 8: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment ■ Machine Tool Segment Net sales (Quarterly changes) 16,000 • In Japan and Europe, demand for CASE-related 12,227 products remained strong. 12,000 Net sales Aerospace demand in the West is also recovering. 8,000 • Net sales declined due to a decrease in demand for smartp
Slide 9: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment ■Industrial Machinery Segment Net sales (Quarterly changes) 4,000 3,000 2,393 Net sales • CASE-related products remained strong in Japan. 2,000 • Net sales declined due to a decrease in demand for smartphones and electronic components, etc. 1,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 10: Financial Results by Segment: Food Machinery Segment
Financial Results by Segment ■Food Machinery Segment Net sales (Quarterly changes) 3,000 2,000 • Demand for noodle-making machine-related Net sales equipment in Japan and overseas, as well as 998 sterile-packed cooked rice production equipment 1,000 for overseas markets, has remained strong. 0 1Q 2Q
Slide 11: Financial Results by Segment: Other Segments
Financial Results by Segment ■Other Segments Net sales (Quarterly changes) 2,000 Net sales from the precision dies and mold 1,500 1,265 operations decreased partly due to semiconductor Net sales shortages and supply chain disruptions. Demand for ceramics for semiconductor 1,000 manufacturing equipme
Slide 12: Balance Sheet
Balance Sheet Increase in interest-bearing debts by about 2 billion yen due to an increase in borrowings Net assets decreased by about 0.7 billion yen due to capital measures such as the acquisition of treasury shares and dividends, despite an increase in foreign currency translation adjustments
Slide 13: FY23/12 Financial Results Projections (References)
I. 1Q FY23/12 Financial Results Summary II. FY23/12 Financial Results Projections (References) 13
Slide 14: Changes in JMTBA Orders and EDM Orders
Changes in Amount of JMTBA Orders and in Number of EDMs Ordered from the Company JMTBA Machine 工作機械受注金額・ 日本工作機械工業会 Tool Orders (value) (million yen) Sodick放電加工機受注台数 ソディック EDM Orders (units) (units) 200,000 Record-high 600 monthly orders (2021/3) 150,000 Increasing A fall due to the demand in 2008 fi
Slide 15: Changes in Numbers of EDMs Ordered by Region
Changes in Numbers of EDMs Ordered in Quarters by Region The number of orders received from auto- and aerospace- North and Sales of auto-related and medical-related products were Europe related industries was on a recovery trend. Some investors are South America slightly down, but aerospace-related
Slide 16: FY2023/12 Full-year Financial Results Projections
FY2023/12 Full-year Financial Results Projections Although progress has been slow due to declining sales in Greater China, market conditions are highly uncertain and initial plans remain unchanged FY2023 FY2023 (million yen) FY2019 FY2020 FY2021 FY2022 Progress Planned 1Q Actual rate Net sales 67,
Slide 17: FY2023/12 Full-year Projections (by Segment)
FY2023/12 Full-year Financial Results Projections (by Segment) Machine tools: Sales of EDMs in Greater China fall short of plan Industrial machinery: Slightly lower than planned due to weak sales of semiconductors and electronic components Food machinery: Low progress in 1Q, but sales of both
Slide 18: Shareholder Returns
Shareholder Returns Basic Policy Dividend on equity ratio (DOE) 2% or more and total return ratio 40% or more ■Dividend trends ■Purchase / cancellation of treasury shares Up 2 yen Progress Details of the resolution (end of April) 30 Up to Total 2.5 million number of shares 2.13 million shares to (Ra
Slide 19: Topics for 1Q FY23/12: Production Items
Topics for 1Q FY23/12 New Amoy Plant in Xiamen started operations (January 2023) New Amoy Plant in Xiamen completed to start production of injection molding machines and food machinery ◆Production items Industrial Machinery Segment Electric horizontal injection molding machine High-response moldin
Slide 20: Topics for 1Q FY23/12: Kaga Food Machinery Plant Expansion
Topics for 1Q FY23/12 Kaga Office expands the Food Machinery Plant and renovates its existing plant In March 2023, the expansion of the Kaga Office Food Machinery Plant, Sodick’s main food machinery plant, was started in order to secure a sufficient production system to meet the expected increase
Slide 21: Topics for 1Q FY23/12: Opening of Nagoya IMM Center
Topics for 1Q FY23/12 Opening of Nagoya IMM Center In May 2023, the Nagoya IMM Center was opened as a dedicated contact point for injection molding machines. In the Tokai region, which accounts for about 40% of the Company’s domestic sales, mainly in the automotive industry, the Center was opened
Slide 22: Topics for 1Q FY23/12 (Exhibition Information)
Topics for 1Q FY23/12 (Exhibition Information) Exhibited at TIMTOS (Taipei International Machine Tool Fair) 2023 The Company exhibited at TIMTOS 2023, an international machine tools trade fair in Taiwan, showcasing EDMs as well as electron beam and injection molding machines. The Company touted it
Slide 23: Topics for 1Q FY23/12 (Sustainability)
Topics for 1Q FY23/12 (Sustainability) The following certifications related to sustainability were obtained. We continue to promote initiatives. ➣ External evaluation Field Evaluation Overview Certification of companies with outstanding SDGs Y-SDGs certification initiatives Category: Standard Organi
Slide 24: Appendix
Appendix 1. Changes in Financial Results 2. Changes in Indexes 3. Changes in Financial Results by Segment 4. Numbers of EDMs Ordered and Sold 5. Ratio of Overseas Sales by Segment 6. Maintenance Service Ratio 7. Outline of Business 24
Slide 25: Changes in Financial Results
Changes in Financial Results （million yen） 1Q 2Q 3Q 4Q 1H 2H Full Year FY2021 YoY YoY YoY YoY YoY YoY YoY Net sales 14,317 109.9% 20,187 147.7% 19,471 138.7% 21,199 122.6% 34,504 129.2% 40,669 129.8% 75,174 129.5% Cost of sales 9,665 107.9% 13,167 141.4% 12,571 130.7% 14,058 118.2% 22,832 125.0% 26,
Slide 26: Changes in Indexes
Changes in Indexes Number of employees （Persons） 17/12 18/06 18/12 19/06 19/12 20/06 20/12 21/06 21/12 22/06 22/12 23/03 separate 701 743 755 801 841 869 886 914 924 987 1,087 1,102 consolidated 3,651 3,714 3,676 3,625 3,579 3,576 3,633 3,670 3,683 3,772 3,746 3,728 ＊Not including employee on loan t
Slide 27: Changes in Financial Results by Segment
Changes in Financial Results by Segment 1Q 2Q 3Q 4Q 1H 2H Full Year FY2021 YoY YoY YoY YoY YoY YoY Net sales 10,382 126.0% 13,762 156.0% 13,102 141.6% 14,237 121.6% 24,145 141.5% 27,339 130.4% 51,485 135.4% Machine Tool Operating profit 898 454.3% 2,258 303.4% 2,104 287.0% 1,915 156.9% 3,156 335.4%
Slide 28: Numbers of EDMs Ordered and Sold
Numbers of EDMs Ordered and Sold EDM Orders (Units） FY2021 FY2022 FY2023 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total 1-3 4-6 7-9 10-12 Total North&South 58 70 54 68 250 81 58 56 83 278 70 70 America Europe 100 108 113 106 427 96 106 58 94 354 70 70 China 1,007 858 513 425 2,803 578 619 340 292 1
Slide 29: Ratio of Overseas Sales by Segment
Ratio of Overseas Sales by Segment (million yen) North and South Japan Europe Greater China Asia America 7,000 6,000 Others 5,000 Food machinery 4,000 Industrial machinery 3,000 Machine tools 2,000 1,000 0 FY22 2022年 FY23 2023年 FY22 2022年 FY23 2023年 FY22 2022年 FY23 2023年 FY22 2022年 FY23 2023年 FY22 2
Slide 30: Maintenance Service Ratio
Maintenance Service Ratio Quarterly trends in maintenance services and Breakdown of machinery sales/maintenance service and consumables sales consumables （Million yen） 3,500 Machine FY2022/12 1Q FY2023/12 1Q 2,850 3,000 Tool Maintenance 3,053 2,500 services and 2,850 20.2% 3,053 25.0% 2,000 consumab
Slide 31: Outline of Business
Outline of Business Segment Machine tools Industrial machinery Food machinery Horizontal injection molding Noodle-making equipment Die-sinker EDM Wire-cut EDM machine (Noodle production line) Sterile-packed cooked rice production system Small Hole EDM Metal 3D Printer Vertical injection Key molding
Slide 32: Disclaimer
Disclaimer This presentation material has been prepared exclusively for the purpose of providing information; the material was not created to advertise, solicit, market, etc., specific products or shares of the Company. The information included in this material is not required by the Financial Instr