Slide 1: FY19/12 Results Briefing
TSE 1st Section, 6143 FY19/12 Results Briefing February 21, 2020 Sodick Co., Ltd.
Slide 2: Table of Contents
Table of Contents I. FY19/12 Financial Results Summary 3 II. FY19/12 Financial Results Projections 23 III. Shareholder Return 28 IV. Med-term Plan 30 (Reference Materials) 37 2
Slide 3: I. FY19/12 Financial Results Summary
I. FY19/12 Financial Results Summary II. FY19/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 3
Slide 4: Financial Results Highlights
Financial Results Highlights Due mainly to the protracted U.S.-China trade conflict, sales volume of EDMs decreased worldwide, chiefly in China, our major customer market. As a result, net sales tumbled 18%, year on year. On account of a lower plant-utilization rate associated with a decrease in
Slide 5: Financial Results Highlights (Quarterly)
Financial Results Highlights (Quarterly) Food processing machinery sales grew in 4Q, driving overall net sales. Gross profit margin increased 1.5 points. (million yen) FY19/12 1Q Income 2Q Income 3Q Income 4Q Income (Jan-Mar) margin (Apr-Jun) margin （Jul-Sep） margin (Oct-Dec) margin Net sales 18,8
Slide 6: Operating income margin
Ratio of Operating Income to Net Sales (Quarterly) Others Line graph: Net sales Food Operating processing Food processing machinery sales grew in 4Q. machinery income margin Including sales of Chinese EDM sales remained weak owing to lower sales Industrial subsidiaries during Jan-Mar volume. m
Slide 7: Details of Changes in Operating Income
Details of Changes in Operating Income Although SG&A expenses declined thanks largely to decreases in sales commissions and labor costs, operating income shrank by about 6,600 million yen from the previous year because of a sharp drop in gross profit stemming mainly from lower sales. Gross profit
Slide 8: Financial Results by Segment
Financial Results by Segment (million yen) FY18/12 FY19/12 YoY chg. FY19/12 Full-year projection Actual Actual (Amount) (Rate) (Revised on Nov. 13) ● Machine tool segment 58,607 45,797 -12,810 -21.9% 44,500 Industrial machinery ● 11,155 9,773 -1,382 -12.4% 10,100 segment Net sales ● Food processing
Slide 9: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment (million yen) ■Machine Tool Segment Net sales (Quarterly) Net sales 20,000 16,064 15,841 16,613 • Not only China’s economy but also the entire world 15,652 15,136 economy slowed down owing largely to the protracted 15,000 13,366 13,490 13,362 U.S.-China trade conflict. 1
Slide 10: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment (million yen) ■Industrial Machinery Segment Net sales (Quarterly) 4,000 Net sales 3,266 3,264 3,449 3,419 • Capital investment tended to be delayed at home and 3,029 3,000 2,754 abroad owing to the U.S.-China trade conflict. 2,557 2,531 2,424 2,320 • Demand from the smar
Slide 11: Financial Results by Segment: Food Processing Machinery Segment
Financial Results by Segment (million yen) ■Food Processing Machinery Segment Net sales (Quarterly) Net sales 3,000 2,813 • Demand for high-quality noodle-making equipment was 2,146 robust. 1,973 • There was a rising demand for sterile-packed cooked 2,000 1,783 1,776 1,625 rice production systems bo
Slide 12: Financial Results by Segment: Other Segments
Financial Results by Segment (million yen) ■Other Segments Net sales (Quarterly) 2,000 Net sales 1,708 1,714 1,781 1,606 1,588 1,603 • Demand for precision mold and precision molding 1,486 1,500 1,369 1,346 operations started recovering. 1,281 1,240 • Sales of ceramics were weak owing to a reduced d
Slide 13: Net Sales by Segment
Net Sales by Segment Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services and consumables Maintenance services and consumables Machine tool sales Industrial machinery sales Food processing machinery sales (milli
Slide 14: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment Overseas sales ratio down to 62%, reflecting lower sales in Japan, Europe and China (million yen) North and South Japan Europe Greater China Asia America Others Food processing machinery Industrial machinery Machine tools 2018 2019 2018 2019 2018 2019 2018 2019 2018
Slide 15: Balance Sheet
Balance Sheet Net interest-bearing debt totaled 4,763 million yen (down 1,214 million yen from the end of the previous fiscal year). Total assets shrank attributable chiefly to decreased inventories and trade receivables. Assets Liabilities and net assets (million yen) (million yen) 119,082 119,
Slide 16: Financial Indicators
Financial Indicators Changes in Interest-Bearing Debt, Net Interest-Bearing Debt, and the Debt-to-Equity Ratio Convertible bonds with Interest- 新株 (million yen) 有利子負債 ネット有利子負債 Net interest- D/Eレシオ Debt-to-equity ratio stock subscription bearing debt bearing debt rights (times) 50,000 2.50 40,953 41,
Slide 17: Cash Flows
Cash Flows Cash flows from operating activities totaled 8,336 million yen due mainly to decreases in trade receivables and inventories, despite a decline in profit before income taxes. Cash flows from investing activities decreased on account of lower capital investment in Japan and abroad. Conseq
Slide 18: Capital Investment / Depreciation
Capital Investment / Depreciation Changes in Capital Investment / Depreciation (million yen) 設備投資 Capital 減価償却費 Depreciation investment Major capital investment (FY19/12) 10,000 New Tech Center at the U.K. operating base 8,000 Reinforcement of production facilities for 8,576 precision mold and p
Slide 19: Major New Products Released in FY19/12
Major New Products Released in FY19/12 Segment Machine tools Large Die-sinker EDM Die-sinker EDM High-precision Wire-cut EDM AG200L AL40G/AL60G AP350L (Oil) Product name Aerospace, energy, automobiles, Aerospace, energy, automobiles, Sales Precision, electrical and electronic medical equipment, elec
Slide 20: Major New Products Released in FY19/12
Major New Products Released in FY19/12 Segment Industrial machinery Food processing machinery Food processing machinery V-LINE® Vertical-type Single-action Cooling Holding Bin for Granular Conveyor Belt for Food Inspection Injection Molding Machine Bodies VT50 Product name Precision, electrical and
Slide 21: FY19/12 Topics: Sodick Singapore Techno Centre Opening
FY19/12 Topics 1 Opening Ceremony of Sodick Singapore Techno Centre On February 26 2019, we held at our sales company in Singapore, Sodick Singapore Pte., LTD., an opening ceremony of Sodick Singapore Techno Centre Pte., Ltd. which was set up in collaboration with the Singapore Government. Engaged i
Slide 22: FY19/12 Topics: Food Machinery Sales Company in Shanghai
FY19/12 Topics 3 Establishment of Sales Company of Food Processing Machinery in Shanghai, China A new sales company for food processing machinery, Sodick Tom Food-Machines (Shanghai) Co., Ltd., was established in Shanghai, China in July and started full-scale operation in September. With the establi
Slide 23: II. FY19/12 Financial Results Projections
I. FY19/12 Financial Results Summary II. FY19/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 23
Slide 24: Market Environment
Market Environment Japan: Despite a cautious attitude toward capital investment among manufacturers due to the U.S.-China trade conflict, the government subsidy program and demand for the replacement of aging facilities are expected to be sustained. North America: Capital investment demand is ex
Slide 25: FY20/12 Financial Results Projections
FY20/12 Financial Results Projections Capital investment demand is expected to remain lackluster amid a prolonged trade conflict between the U.S. and China. Net sales are forecast to increase slightly from FY19/12 to 67,800 million yen. The effect of the spread of the novel coronavirus pneumonia
Slide 26: FY20/12 Financial Results Projections (by Segment)
FY20/12 Financial Results Projections (by Segment) (million yen) Machine tool segment / FY19/12 FY20/12 Increase or decrease Industrial machinery segment These segments will see potential Actual Planned Amount Rate demand mainly in China for high- precision models in the field of Machine tool ● se
Slide 27: Projections for Capital Investment / Depreciation / R&D Expenses
Projections for Capital Investment / Depreciation / R&D Expenses For FY20/12, we have projections for the following items: Capital investment is expected to be approx. 4,500 million yen (down 2,000 million yen YoY). • Precision mold and precision molding operations: Response to production Capital
Slide 28: III. Shareholder Return
I. FY19/12 Financial Results Summary II. FY19/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 28
Slide 29: Policies for Shareholder Returns and Dividend Projections
Policies for Shareholder Returns and Dividend Projections As a dividend policy, we aim at a dividend yield on shareholders’ equity (DOE) of at least 2%. For FY19/12, we are planning an annual dividend of 25 yen per share (interim dividend of 12 yen and fiscal year-end dividend of 13 yen). For
Slide 30: IV. Med-term Plan
I. FY19/12 Financial Results Summary II. FY19/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 30
Slide 31: Medium-term Management Plan
Medium-term Management Plan Targeting net sales of 81,600 million yen with operating income of 7,900 million yen by FY22/12 Machine tool Industrial Food processing Others Operating income (million yen) segment machinery (million yen) segment machinery segment 82,716 81,600 78,714 Operating income 75
Slide 32: Management Strategies: Machine Tool Segment
Management Strategies Machine Tool Segment ●Further strengthen product competitiveness of EDMs ➡ Maintain absolute advantage in producing EDMs Strengthen sales systems in growth markets ⇒Strengthen sales systems in emerging markets (India, Mexico, etc.) ⇒Increase market share in Europe and the U.S.
Slide 33: Management Strategies: Industrial Machinery Segment
Management Strategies Industrial Machinery Segment ●Target overseas sales ratio of 70% or higher ⇒Strengthen sales systems in growth markets such as those in Europe and India ⇒Reorganize sales structure (Increase the number and skills of sales staff mainly in China and other countries and regions in
Slide 34: Management Strategies: Food Processing Machinery Segment
Management Strategies Food Processing Machinery Segment ●Expand product lineup ⇒Promote development of products other than noodle-making equipment and cooked-rice production system targeting the confectionery, bread and home meal replacement industries ⇒Introduce automation and labor-saving producti
Slide 35: Management Strategies: Others
Management Strategies Others ●Increase profitability of precision mold and precision molding operations ⇒Develop and operate cell production system utilizing metal 3D printers and dedicated injection molding machine MR30 ⇒Establish product development system to accommodate molding demands from next-
Slide 36: Management Strategies: Reinforcement of management bases
Management Strategies Reinforcement of management bases ●Promote work-style reform Create a better working environment by improving the personnel system ⇒Promote diverse management by supporting and encouraging more women in the workplace and increasing the employment of older and foreign workers ⇒P
Slide 37: (Reference Materials)
I. FY19/12 Financial Results Summary II. FY19/12 Financial Results Projections III. Shareholder Return IV. Med-term Plan (Reference Materials) 37
Slide 38: Reference Materials: Domestic and Overseas Sites
Reference Materials: Domestic and Overseas Sites NEW NEW Sodick America Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant Corporation(San Jose) (Chicago) Software Co., Ltd. (Multi-factory) Head Office and Research and Technology Center NEW Sodick Europe Ltd. (U.K.) Fukui Plant Ｑ Sodick Deutschl
Slide 39: Reference Materials: Participation in Major Exhibitions
Reference Materials: Participation in Major Exhibitions The Company will participate in domestic and overseas exhibitions, thereby engaging in proactive marketing. Period Location Exhibition Notes 2020 Feb. 26-28 Japan Makuhari Next Generation 3D Printer Exhibition Mar. 10-13 Germany Dusseldorf ME
Slide 40: Status of Responses to the Spread of Novel Coronavirus Pneumonia
Reference Materials: Status of Responses to the Spread of Novel Coronavirus Pneumonia Status of responses at our sites in China is as shown below. Plant / Sales office Location Operation status Suzhou Plant Suzhou City, Jiangsu Province Partially began operations on Friday, February 14. Amoy Plant
Slide 41: 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. This information included in this material is not required by the Financial Inst