Hosokawa Micron Corporation · TSE:6277
Hosokawa Micron — FY2023 Earnings Presentation
44 slides from Hosokawa Micron's earnings presentation, Nov 28, 2023
Slide 1: Financial Results of FY2023
Financial Results of FY2023 28th Nov. 2023 Process Technologies for Tomorrow © HOSOKAWA MICRON CORP. All rights Reserved.
Slide 2: Agenda: Summary of Financial Results for FY2023
１ Summary of Financial Results for FY2023 2 Forecast for FY2024 3 Progress of the Mid-term Plan and Topics 4 Appendix 1/42
Slide 3: Agenda: Summary of Financial Results for FY2023
１ Summary of Financial Results for FY2023 2 Forecast for FY2024 3 Progress of the Mid-term Plan and Topics 4 Appendix 2/42
Slide 4: Business Segment
Business Segment Percentage of Net sales Percentage of Net sales ： Approx. 80% ：Approx. 20% Powder Processing Business Blown Film Business 3/42
Slide 5: Review of the External Environment
Review of the External Environment Depreciation of JPY Inflation • Overseas sales ratio ：approx. 80% • Cost increases are passed on to • Overseas group profit margin ：low product selling prices. Consolidated Financial Results increase Profit ・・・ Japan ・・・ progressing margin ・・・ Overseas Group ・・・ de
Slide 6: Financial Summary
Financial Summary Steady sales were recorded from the abundant backlog. The depreciation of the yen also contributed to the record-high performance. Profitability has also improved due to the recording of sales from projects with price increases. • In the powder processing business, orders increased
Slide 7: Business Results
Business Results Cost of sales increased due to increased product production. SG&A expenses also increased due to the resumption of sales activities by After COVID-19 and increase in wages with inflation. FY2022 FY2023 YoY changes YoY Changes(%) (Million JPY) Results(a) Results(b) (c=b-a) (c/a) Book
Slide 8: Bookings by Application
Bookings by Application others Pharmaceuticals Toll processing 7.2% 8.0% Foods and Chemicals performed well. Maintenance demand was also 3.9% Foods strong, which resulted in a record-high bookings. 8.6% Pharmaceuticals declined on a reactionary fall from FY2022. Aftersales Chemicals Blown films was
Slide 9: Trend of Bookings, Net sales & Backlog
Trend of Bookings, Net sales & Backlog Long delivery times have stabilized, and sales recordings are steadily progressing based on the abundant backlog. (100 million JPY) 700 Bookings Net sales Backlog 600 527 500 500 400 372 300 267 264 272 229 200 175 100 0 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4 1Q 2
Slide 10: Trend of dwell time in Backlog
Trend of dwell time in Backlog Longer delivery times for procured parts and materials continue, but the number of days of backlog is improving due to long-term stability. 273days 223days 242days 186days 151days FY2019 2020 2021 2022 2023 Backlog ※ Backlog dwell time (days) ＝ Net sales per day（ Net s
Slide 11: Net sales by Business Segment
Net sales by Business Segment The powder processing business grew significantly compared to FY2022, although there was an increase in the foreign exchange effect. One factor is the spread of the effect of price increases. Blown film business is at a record high after translation into JPY, but the bu
Slide 12: Net sales by Group company location
Net sales by Group company location America Japan, Asia, etc. Net sales increased in each region, each reaching a record high. 18.1% 24.2% Net sales by Japan, Asia, etc. are highly profitable and contribute to consolidated Group company results (operating profit). location(%) Europe 57.7% USA Europe
Slide 13: Operating profit Increase/Decrease Factors
Operating profit Increase/Decrease Factors ＜Impact on SG&A expenses＞ ＜ Effect of Gross profit ・ Increase in labor costs ： ▲14 margin improvement ＞ ・ Increase in operating expenses, sales department travel expenses, etc. ： ▲7 ＜Effect of increased sales＞ （100 million JPY） ※Effect of increased sales =
Slide 14: Balance Sheet
Balance Sheet Capital adequacy ratio：60.6％(Change from end of FY2022 ▲1.8pp) (Million JPY) *( ) shows the change from end of FY2022 Current assets Liabilities 64,626 38,125 (+6,130) (＋5,838) Liability with Cash and cash Accounts payable, etc. Interest :1,771 Equivalents 12,020 25,929 (＋2,846) (+311)
Slide 15: Cash Flow
Cash Flow Operating activities ： Increase by increase in profit Investing activities ： Decrease due to purchase of PPE Financing activities ： Decrease due to purchase of treasury stock and payment of dividends. CF from CF from Operating Investing activities YoY activities CF from (▲21) (▲9) Financin
Slide 16: Investment/Depreciation/R&D expenses
Investment/Depreciation/R&D expenses Major capital investment results for FY2023 are below. • Investments of toll processing factories in Japan and USA • Renewal of old equipment （To be continued in the future） FY2022 FY2023 YoY changes (Million JPY) Results(a) Results(b) (c=b-a) Investment 1,775 3,
Slide 17: Trends of ROE & ROA
Trends of ROE & ROA 14.0% ROE ROA 11.8% 12.0% 11.4% 11.3% 10.9% 10.6% 11.2% 10.0% 8.5% 8.6% 8.6% 10.0% 10.0% 8.6% 9.5% 8.1% 9.1% 8.0% 8.0% 7.5% 7.3% 7.0% 6.0% 5.2% 4.0% FY2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ※ROE :Return On Equity ROA：Return On Asset 16/42
Slide 18: Agenda: Forecast for FY2024
１ Summary of Financial Results for FY2023 2 Forecast for FY2024 3 Progress of the Mid-term Plan and Topics 4 Appendix 17/42
Slide 19: Forecast for FY2024
Forecast for FY2024 The following three points are taken into account in setting the earnings forecast. 1. Reactionary fall from FY2023. In particular, net sales and operating profit in FY2023.4Q were higher than expected. 2. Sluggish performance of blown film business 3. Part of the backlog include
Slide 20: Logical Backlog (compared to normal delivery times)
Logical Backlog (compared to normal delivery times) Record-high order backlog at the end of the fiscal year due to price increases and the impact of JPY depreciation. Within a stable range after taking into account increased material costs, delivery times, and exchange rate effects. < Calculation of
Slide 21: Trend toward larger projects
Trend toward larger projects Trend toward larger projects has become apparent. Booking probability for projects of 100 million JPY or more is expected to decrease by about 20% compared to projects of less than 100 million JPY. Projects of 100 million JPY or more ＊ Number of bookings Total booking Am
Slide 22: Dividend Forecast
Dividend Forecast Our basic concept is to provide stable profit distribution to shareholders while reflecting changes in business performance, and to strive to increase the amount of dividend per share. For FY2024, the company plans to pay an annual dividend of 100 JPY per share, an increase of 12.5
Slide 23: Trends of Investment/Depreciation/R&D expenses
Trends of Investment/Depreciation/R&D expenses Major Capital Investment Plan for FY2024 • Expansion of factories and renewal of old equipment in Europe • Core system update in Japan R&D expenses Depreciation Investment 5,000 (Million JPY) 3,774 3,299 3,140 2,532 1,996 2,200 1,775 1,944 1,607 1,393 1
Slide 24: Agenda: Progress of the Mid-term Plan and Topics
１ Summary of Financial Results for FY2023 2 Forecast for FY2024 3 Progress of the Mid-term Plan and Topics 4 Appendix 23/42
Slide 25: Performance by fiscal year (Consolidation)
Performance by fiscal year (Consolidation) 14th Mid-term 15th Mid-term 16th Mid-term 17th Mid-term Plan for 3 years Plan for 3 years Plan for 3 years Plan for 3 years Further development of Hosokawa Micron Group Hosokawa Micron Group Hosokawa Micron Group Mountain Range of intends to maximize our en
Slide 26: Basic Measure Implementation Status
Basic Measure Implementation Status Reinforcement of Group Marketing & Product Corporation DX Development • Select and implement targets • Scheduled to complete • Marketing Automation and measures with a focus on implementation of core Implementation Asia system (SAP) in FY24. • Established a specia
Slide 27: Strengthening of Toll Processing (Powder Processing Business)
Strengthening of Toll Processing(Powder Processing Business) Completed establishment of a new factory in Japan and a new contract processing company in USA, respectively. Aiming to increase production capacity. Nowadays, the need to respond to production volatility has expanded customer needs To be
Slide 28: TCFD Disclosure
TCFD Disclosure Scenario analysis (assessments of criticality and financial impact analysis) for 2030 and 2050 based on the assumption of global temperature increase in 2100. In October 2023, Hosokawa Sustainability Management Committee was formed to report and advise the Board of Directors to consi
Slide 29: Publication of Integrated Report
Publication of Integrated Report To explain how we will contribute to social issues and achieve growth from a long-term perspective. In the first issue, we will promote our unique "strengths" and raise our awareness by explaining "powder technology" in plain language. Integrated Report cover image(J
Slide 30: Local Community and Social Contribution
Local Community and Social Contribution Participated in various events and projects for elementary, junior high, and university students in Hirakata City, Osaka Prefecture, the local area. Career education book for elementary school Manufacturing event "Clumsy Factory" students "Oshigoto Notebook At
Slide 31: Agenda: Appendix
１ Summary of Financial Results for FY2023 2 Forecast for FY2024 3 Progress of the Mid-term Plan and Topics 4 Appendix 30/42
Slide 32: Company Profile
Company Profile Representative Kohei HOSOKAWA Foundation Apr. 1916 Capital 144.96 Million JPY Fiscal Establishment Aug.1949 year end Sep. Stock Prime Market of Tokyo stock exchange. market （from Apr. 4th, 2022） Head Office 1-9, Shodaitajika, Hirakata City, Osaka Location Consolidated 1,939 Employees
Slide 33: About Us
About Us Management Philosophy "Powder Technology contributes to the Society" Corporate Vision The Hosokawa Micron Group will always be the leading global company covering the mountain range of Powder Technologies. The Group will achieve peaks of excellence in the development and commercialization o
Slide 34: About Us
About Us Our Business We provide providing machinery, equipment, and system engineering Business Areas Powder Processing Business and Blown Film Business 33/42
Slide 35: Powder Technologies
Powder Technologies Milling Drying Various operations Separation Granulation Blending Measurement Recovery of powders, Filtration 34/42
Slide 36: Powder Processing Equipment
Powder Processing Equipment Film manufacturing equipment The melted polymer is using the inflation method inflated with air and molded into a bag shape. The translucent part is the film Offering the system (Including Winder, Orientation, etc.) 35/42
Slide 37: Expanding our Business Worldwide
Expanding our Business Worldwide One of the industry’s largest manufacturing, aftersales service, and R&D systems Manufacturing and repairing large machines by our own factories in Japan, USA, and Europe. Global support for maintenance and remodeling (facility improvement) Research and development d
Slide 38: Where powders are used?
Where powders are used ? Synthetic resin Lithium ion battery Recycle Automobiles Cemented Toner, Magnets, carbide material Electronics materials Clean room Minerals Hosokawa Micron Group Air pollution control Foods Agriculture Pharmaceuticals Chemicals 37/42
Slide 39: Corporate History
Corporate History Foundation of the Osaka Turbine Water Mill Asian subsidiaries, Malaysia (1995), Korea 1916 Company (1996), France (1999), China (2005), India Company name changed to the Hosokawa 1995 (2007), Russia (2012), Thailand (2019), 1949 Iron Works Poland (2020), Switzerland, Mexico, Chile(
Slide 40: Net sales by Geographic area
Net sales by Geographic area ※Size of squares shows sales amount. Net sales by Group Companies’ Location Net sales by Customers’ Location (Destination) 39/42
Slide 41: Net sales by Major group companies
Net sales by Major group companies ※Size of squares shows sales amount. 40/42
Slide 42: Contribution to Society through Powder Technology (Case 1)
Contribution to Society through Powder Technology (Case 1) PET recycled products that could only be used as fiber can now be recycled into bottles Solid State Polymerization (Drying Technology Application) PET Bottle 【 Improved performance of electric vehicles 】 Electrode materials for rechargeable
Slide 43: Contribution to Society through Powder Technology (Case 2)
Contribution to Society through Powder Technology (Case 2) Application to manufacture of silicon solar panels and wind turbines Milling Technology Solar & Wind power Generation 【 Response to Protein Crisis 】 Meat substitutes, insect food, and cultured meat from plant materials Milling Technology Dry
Slide 44: Disclaimers
【Disclaimers】 The forward-looking statements contained in this document are based on information and processes available at the time this document was prepared, and actual results may differ from the forecast figures due to various factors in the future. No part of this document must be reprinted or