Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2015 Earnings Presentation
29 slides from Sumitomo Heavy Industries's earnings presentation, May 11, 2016
Slide 1: Financial Summary for FY2015 and Projections for FY2016
Financial Summary for FY2015 and Projections for FY2016 May 11, 2016 President and CEO Shunsuke Betsukawa Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 1
Slide 2: INDEX
May 11, 2016 INDEX 01 Financial Summary for FY2015 02 Performance Forecast for FY2016 03 Progress Status of “Medium-Term Management Plan 2016” Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 2
Slide 3: Financial Summary for FY2015
May 11, 2016 01 Financial Summary for FY2015 Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 3
Slide 4: Financial Summary
May 11, 2016 01 Financial Summary Key points Unit: JPY billion (1) Orders ・Growth in Industrial Machinery segment, FY2014 FY2015 Change while declines in Construction Machinery, Ships and Environmental Facilities and Plant segments. Overall order figures fell. Orders 740.8 685.9 (54.9) ・Machinery
Slide 5: Operating Income by Segment
May 11, 2016 01 Operating Income by Segment Unit: JPY billion Comparison with same term previous fiscal year FY2014 FY2015 Change <Machinery Components> Drop in demand globally for large-scale gear Machinery reducers. However, profits increased due to growth from the Japan, North American and comp
Slide 6: Consolidated Balance Sheet
May 11, 2016 01 Consolidated Balance Sheet Unit: JPY billion March March March March Change Change 2015 2016 2015 2016 Current assets 492.0 493.0 1.0 Liabilities 420.9 400.0 (20.9) Notes and accounts Cash and deposits * 92.4 70.8 (21.6) payable 140.4 142.3 1.9 Notes and accounts Advanced payments re
Slide 7: Consolidated Cash Flow Statement
May 11, 2016 01 Consolidated Cash Flow Statement Working capital increased due to a rise in sales. Secured positive FCF. Unit: JPY billion Category FY2014 FY2015 Change Operating activities 62.2 18.3 (43.9) Income before income taxes 38.7 47.2 8.4 Depreciation 16.3 19.7 3.4 Working capital 11.7 (3
Slide 8: Performance Forecast for FY2016
May 11, 2016 02 Performance Forecast for FY2016 Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 8
Slide 9: Performance Forecast for FY2016
May 11, 2016 02 Performance Forecast for FY2016 Dividend for FY2015 was JPY16, JPY2 higher than the initial dividend forecast of JPY14. Projecting a drop in profits for FY2016 with main factors being the foreign exchange rate and a drop in IT-related demand for injection molding machines. Annu
Slide 10: Machinery Components
May 11, 2016 02 Machinery Components FY2015 : Market decline continued for large-scale gear reducers targeted for the China and resource-related markets. The domestic market for small-to-medium scale units and precision gear reducers weakened during the second half of the fiscal year. However, the N
Slide 11: Precision Machinery
May 11, 2016 02 Precision Machinery <Plastic machinery> FY2015 : IT-related demand from Asia slowed after Q2. Growth was seen from the auto-related market in the US and the overall Southeast Asian market. Segment was able to post record-setting orders and sales figures as the domestic and Eurozone m
Slide 12: Construction Machinery
May 11, 2016 02 Construction Machinery <Hydraulic excavators> FY2015 : Orders and sales in this segment fell as compared to the previous fiscal year. This was mainly due to a significant drop in demand from the China market, as well as a slowdown in domestic sales following the temporary jump in dem
Slide 13: Industrial Machinery
May 11, 2016 02 Industrial Machinery FY2015 : Strong demand for industrial cranes seen from the domestic shipbuilding market. In addition, the segment was able to secure an order for a proton cancer therapy equipment. As such, order levels improved as compared to the previous year. Significant growt
Slide 14: Ships
May 11, 2016 02 Ships FY2015 : Due to new emission regulations, there was a rush to place orders during 2014 and 2015. Ship owners pulled back from making new orders from January 2016 onwards. Total orders fell by seven vessels as compared to the previous fiscal year to two vessel orders. Three new
Slide 15: Environmental Facilities and Plants
May 11, 2016 02 Environmental Facilities and Plants FY2015 : Only two orders for boilers were received in the first half due to slippage of order-receiving timing to next fiscal year. Orders in the water treatment plant business rose as compared to the previous fiscal year due to securing a large-sc
Slide 16: Performance Forecast for FY2016 by Segment
May 11, 2016 02 Performance Forecast for FY2016 by Segment Unit: JPY billion Record Record Forecast Forecast Record Forecast 1H-FY15 2H-FY15 1H-FY16 2H-FY16 FY2015 FY2016 Orders 54.0 51.0 54.0 56.0 105.0 110.0 Machinery Net sales 52.3 55.3 53.0 57.0 107.6 110.0 components Operating income 3.6 5.4 3.
Slide 17: Progress Status of Medium-Term Management Plan 2016
May 11, 2016 03 Progress Status of “Medium-Term Management Plan 2016” Copyright © Sumitomo Heavy Industries, Ltd. All Right Reserved. 17
Slide 18: Progress Status of MTMP16 (Overall)
May 11, 2016 03 Progress Status of “MTMP16” (Overall) Unit：JPY billion FY13 FY14 FY15 MTMP16 FY16 actual actual actual plan forecast Sales 615.3 667.1 700.8 700.0 700.0 ① “Steady growth” to CAPEX 19.1 50.0 70.0 establish a strong foundation for R&D 18.6 (FY14〜FY16 45.0 44.0 sustainable growth 3 year
Slide 19: Progress on Achieving the MTMP16 Objectives
May 11, 2016 03 Progress on Achieving the “MTMP16” Objectives Group was able to achieve the MTMP16 objectives one year in advance in FY2015. However, progress by division showed discrepancies. Focus will be on implementing measures to achieve a “Return to higher levels of profitability” and to l
Slide 20: MTMP16 Objectives (Sales trend by segment)
May 11, 2016 Progress on Achieving the “MTMP16” Objectives 03 (Sales trend by segment) With regard to achieving “Steady growth”, sales across all segments are generally as per plan. Unit：JPY billion 800 667.1 700.8 700.0 700.0 700 670.0 650.0 600 Others 500 Environmental facilities & plants Ships
Slide 21: MTMP16 Objectives (Sales trend by region)
May 11, 2016 Progress on Achieving the “MTMP16” Objectives 03 (Sales trend by region) FY2014: All regions generally met plan figures with the exception of China. FY2015: Exceeded plan figures by covering the drop-off in China through Japan. FY2016: Japan will continue to grow while other regio
Slide 22: MTMP16 Objectives (Profit by segment)
May 11, 2016 Progress on Achieving the “MTMP16” Objectives 03 (Profit by segment) FY2014: Strong earnings in the Precision Machinery and Construction Machinery segments. Significantly exceeded first-year targets set forth in the MTMP16. FY2015: Despite the impact of a slowdown in the Chinese eco
Slide 23: MTMP16 Business Environment Forecast vs. Actual Condition
May 11, 2016 “MTMP16” Business Environment Forecast 03 vs. Actual Condition Region Initial Forecast in MTMP16 Actual Condition Sustained growth in markets due to Domestic(Japan) Approximately flat economic recovery Although bubble concerns exist, Significant drop in demand for hydraulic China hydrau
Slide 24: Current Positioning of Business Areas in MTMP16
May 11, 2016 03 Current Positioning of Business Areas in “MTMP16” Growth and High Need to Stabilize Role Improve Profitability Profitability Profitability Aim to achieve growth while Ensure a stable maintaining high profitability Improve profitability profit margin levels (10% or greater) Positionin
Slide 25: Progress of Achieving Issues Outlined in MTMP16
May 11, 2016 03 Progress of Achieving Issues Outlined in “MTMP16” Implementation Issues Condition ・Focused investment in business areas with potential for growth and high profitability (Facilities, R&D, Human Resources, M&A / Industrial Crane) Exceeded plan ・Improve Profitability (Injection molding
Slide 26: Progress of Investment Plan Outlined in MTMP16 (CAPEX and R&D)
May 11, 2016 Progress of Investment Plan Outlined in “MTMP 16” 03 (CAPEX and R&D) Unit：JPY billion Unit：JPY billion 40 20 CAPEX R&D 30 Others Others 20 10 Growth Growth & high profitability & high profitability 10 0 0 Plan Actual Plan Actual Plan Forecast Plan Actual Plan Actual Plan Forecast FY14 F
Slide 27: Key Focus Areas for FY2016
May 11, 2016 03 Key Focus Areas for FY2016 The future path of the external environment remains murky (stagnation of the Chinese economy, yen strengthening, etc.) and an upturn in conditions cannot be expected. As such, the focus will be on establishing a strong footing for the future. <Areas that th
Slide 28: Forward-looking statements
May 11, 2016 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 sub
Slide 29: Ref. Overseas sales by regional segment
May 11, 2016 Ref. Overseas sales by regional segment Unit：JPY billion Asia North Overseas Total Europe (excluding China Others Japan America Sales sales China) FY2015 130.8 66.6 75.0 50.6 45.4 368.3 332.5 700.8 sales ratio 18.7% 9.5% 10.7% 7.2% 6.5% 52.6% 47.4% 100% Total 全社 FY2014 122.6 56.7 75.6 5
Sumitomo Heavy Industries — FY2015 Earnings Presentation on 6ix