Slide 1: Results Briefing
TSE 1st Section, Code No. 6143 Create Your Future Fiscal Year Ended March 31, 2016 Results Briefing May 19, 2016
Slide 2: Contents
Contents Key Points 3 . Fiscal Year Ended March 31, 2016 Financial Results Summary 4 . Fiscal Year Ending March 31, 2017 Financial Results Projections 17 . Shareholder Return 22 . Medium and Long-term Strategies and Outlook 24 (Reference Materials) 28 2
Slide 3: Key Points
Key Points Fiscal Year Ended March 31, 2016 - Financial Results Sales and earnings increased, with consolidated sales rising to ¥65,146 million (+3.3% compared with the year earlier) and operating income to ¥6,353 million (+29.9%). Machine Tool Operations performed well, driving overall financial re
Slide 4: Fiscal Year Ended March 31, 2016 Financial Results Summary
Fiscal Year Ended March 31, 2016 Financial Results Summary
Slide 5: Financial Results Highlights
Financial Results Highlights In FY2016, sales increased 3.3% compared with the year earlier. The gross margin improved 3.4 percentage points compared with the year earlier on contributions mainly from enhanced productivity and procurement cost reductions. (In million yen) Compared with FY ended FY e
Slide 6: Operating Income Margin
Sales-to-operating-income Ratio (Quarterly) Although beginning in the second half of FY2016, weak conditions predominated in greater China and other markets of emerging economies, the operating income ratio maintained a high level despite weaker sales, mainly owing to cost of sales reductions. Sales
Slide 7: Factors Affecting Ordinary Income (Actual Results)
Factors Affecting Ordinary Income (Actual Results) Despite higher selling, general, and administrative expenses, such as personnel, R&D, and depreciation charges, as well as foreign exchange rate losses, ordinary income increased ¥71 million due to the markedly improved gross margin. (In million yen
Slide 8: Financial Results by Segment
Financial Results by Segment (In million yen) Machine Tool Operations FY ended FY ended Compared with the In Japan, Machine Tool Operations performed well centered on automotive March 2015 March 2016 year-earlier period applications, additionally aided by government subsidy measures. Actual Actual (
Slide 9: Segment Sales Breakdown
Segment Sales Breakdown Sales of maintenance services and consumables, a stable source of cash, account for roughly 20% of total sales. Machine Tool Operations Industrial Machinery Operations Food Processing Machinery Operations Maintenance service/Consumables Maintenance service/Consumables Mainten
Slide 10: Overseas Sales Ratios Broken Down by Operation
Overseas Sales Ratios Broken Down by Operation Sodick has been developing global operations with an overseas sales ratio of 63.8%. (In million yen) North and South Japan Europe Greater China Asia America 25,000 20,000 Machine Tool Industrial 15,000 Machinery Food Processing Machinery 10,000 Other Op
Slide 11: Balance Sheet
Balance Sheet Net interest-bearing debt decreased by ¥1,826 million compared with the year earlier to ¥6,163 million. The current ratio remains at a high level of 200% or above. Assets Liabilities and Net Assets (In million yen) (In million yen) 120,000 120,000 104,167 104,167 99,722 99,722 100,000
Slide 12: Fluctuation in Financial Indicators
Fluctuation in Financial Indicators Fluctuation in the Interest-bearing Debt and Debt-to-equity Ratio (In million yen) Interest-bearing debt D/E Debt-to-equity ratio 50,000 2.50 41,339 41,506 39,480 40,000 35,758 2.00 33,826 30,000 1.30 1.50 1.17 1.02 20,000 0.86 1.00 0.75 10,000 0.50 0 0.00 2012/3
Slide 13: Cash Flow
Cash Flow Free cash flow marked a strongly positive balance at ¥3,806 million. Despite efforts at reducing interest-bearing debt, cash on hand has maintained the year-earlier level. (In million yen) FY ended FY ended Main factors March 2015 March 2016 Decrease in notes and accounts payable - trade C
Slide 14: Facility Investment / Depreciation Charges / R&D Expenditure
Facility Investment / Depreciation Charges / R&D Expenditure Fluctuation in Facility Investments / Depreciation Charges Main facility investments Facility Depreciation (In million yen) investments charges Food Processing Machinery: ¥800 6,000 5,460 million (approx.) in capital investment 5,000 in ne
Slide 15: New Products Released in the Period Under Review
New Products Released in the Period Under Review Food Processing Segment Machine Tool Machine Tool Industrial Machinery Industrial Machinery Machinery Linear motor-driven wire High grade machining Injection molding electric discharge Injection molding machine Tray feeder center machine machining too
Slide 16: Topics: Sodick Private Show 2016
Topics: Exhibit Information 1 Sodick Private Show 2016 Sodick hosted the Sodick Private Show 2016 at its head office and research and technology center with a display of 20 exhibits, including very recent products, comprising machine tools, industrial machinery, and food processing machinery. The ev
Slide 17: Fiscal Year Ending March 31, 2017 Full-year Financial Results Projections
. Fiscal Year Ending March 31, 2017 Full-year Financial Results Projections
Slide 18: Market Environment
Market Environment Japan: We expect sustained solid demand due to government subsidy programs and replacement demand due to facility aging. North America and Europe: Capital investment demand has been firm in automotive, aerospace, and medical equipment related applications. We anticipate favorable
Slide 19: Fiscal Year Ending March 31, 2017 - Financial Results Projections
Fiscal Year Ending March 31, 2017 - Financial Results Projections For FY2017, we expect higher unit sales mainly from new product launches, but revenue growth will be narrowly capped by the yen strengthening we foresee compared with the year earlier. (In million yen) Compared with the year FY ended
Slide 20: Full-Year Projections by Segment
Full-Year Projections by Segment (In million yen) FY ended FY ending Compared with the March 2016 March 2017 year-earlier period Machine Tool Operations Actual Projections (Amount) (Change) We expect capital investment demand to continue favorably, centered on the Machine Tool markets of industriali
Slide 21: Projections for Facility Investments, Depreciation Charges, and R&D Expenditure
Projections for Facility Investments, Depreciation Charges, and R&D Expenditure For FY2017, we have the following projections by item. Capital investment expected at around ¥2,300 million (¥500 million lower than in the year earlier). Facility - Semiconductor R&D facilities related to next-generatio
Slide 22: Shareholder Return
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Slide 23: 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 of at least 2%. For FY2017, we are planning for an annual dividend of ¥19 per share (interim dividend ¥9.0, fiscal year-end dividend ¥10.0). 1 Dividend per share DOE 30
Slide 24: Medium and Long-term Strategies and Outlook
Medium and Long-term Strategies and Outlook
Slide 25: Vision for Growth
Vision for Growth One year has passed since the transition to the new phase. Striving toward the expansion of existing operations and the launch of metal 3D printers as a full-sized profit center. Growth of Sales and Business Scale new operations Growth of existing operations Current Future Phase 1
Slide 26: Medium-term Management Plan
Medium-term Management Plan Targeting sales of ¥77,500 million with operating income of ¥9,000 million by FY2019 (In million yen) Other Food Industrial Machine Tool Operating Processing Machinery Income (In million yen) Operations Operations 90,000 Machinery Operations 11,000 Operations 77,500 70,50
Slide 27: Management Strategies
Management Strategies Machine Tool Operations Expansion of market shares in all regions Strengthen sales of low-price "VL Series" machine models in the markets of emerging economies In the markets of industrialized countries, expand sales of high-precision "AL Series" wire electric discharge machine
Slide 28: (Reference Materials)
Sodick (Reference Materials) Pn
Slide 29: Main Domestic and Overseas Sites
Main Domestic and Overseas Sites Sodick America Corporation Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant (San Jose) (Chicago/NJ/L.A.) Software Co., Ltd. Head Office / Research and Technology Center Sodick Europe Ltd. (U.K.) Fukui Plant Tokyo Showroom Sodick Deutschland GmbH (Established Ja
Slide 30: Information on Participation in Major Exhibitions
Information on Participation in Major Exhibitions Sodick emphasizes proactive marketing with participation in trade fairs in Japan and overseas. Period Location Venue Outline Metalloobrabotka May 23-27 Russia Moscow (International Specialized Exhibition for Equipment, Instruments and Tools for the M
Slide 31: Status of Support Activities for the Victims of the Kumamoto Earthquake
Status of Support Activities for the Victims of the Kumamoto Earthquake in April 2016 We extend our heartfelt sympathies to the victims of the earthquake that struck the Kumamoto region on April 14, 2016. In response to the Kumamoto earthquake, Sodick Group organized support teams consisting of tech
Slide 32: Disclaimer
Disclaimer This presentation has been prepared exclusively for the purpose of providing information. It is not the purpose of this presentation to offer, solicit, or market, etc., a specific product, including the shares of the Company. This presentation and the information it contains are not the s