Slide 1: Financial Results Briefing for Fiscal 2009
FINANCIAL RESULTS BRIEFING FOR FISCAL 2009 May 14th 2010 THK CO., LTD. President & CEO AKIHIRO TERAMACHI This presentation material contains forward looking statements that reflect the Company’s business plans, performance projections, and strategic forecasts. Such statements are based on informatio
Slide 2: 1. Financial Results
1. Financial Results Fiscal Year ending March 2010 Copyright THK CO.,LTD.2010. All rights reserved.
Slide 3: Financial Highlights
Financial Highlights Net sales declined by 35.7% from the previous year to 115.3 billion yen Although demand picked up in Japan in the electronics sector, the extent of downturn in the first half of the year was so great that the Company ultimately posted a decrease in revenues. Overseas, despit
Slide 4: Trend in Net Sales
Trend in Net Sales Europe Japan 15,861 2006/3 16,198 112,244 158,412 14,107 Millions of yen Asia and others Americas 19,203 2007/3 19,344 119,513 174,710 16,649 Millions of yen Industrial Equipment- Transportation Equipment- Related Business Related Business 21,150 2008/3 25,236 136,321 208,708 168,
Slide 5: Trends in Sales-Cost Ratio and SG&A
Trends in Sales-Cost Ratio and SG&A COGS ratio 79.9% Sales-cost ratio increased by 6.9points Y/Y 67.4% 73.0% 63.4% 62.7% THK unconsolidated: Up 4.2 points Y/Y ・Sales decline ・Decrease in fixed cost Consolidated Subsidiaries ・Sales decline COGS 109,568 140,655 130,928 ・Decrease in fixed cost 100,49
Slide 6: Operating Income - Cause of Change
Operating Income - Cause of Change - 8.5 Billions Operating income by Operating income by of yen geographical segment business segment Japan (1,476) million Transportation Equipment- （Down ¥ 15,128 million from Related Business previous period） (9 . 5 ) America (364) million (4,309) million （Down ¥
Slide 7: Trends in Net Income
Trends in Net Income 193 2,045 8,523 5079 1204 2009/3 Extraordinary Loss (Net) （Down ¥ 3,667 million Y/Y) (5,712) Lump-Sun Amortization Net Income (14,300) （Down ¥ 15,505 million Y/Y) Income Taxes and Others （Down ¥ 5,289 million Y/Y) (9 , 5 0 8 ) Operating Income （Down ¥ 18,032 million Y/Y) Millio
Slide 8: Trends in Assets, Liabilities and Net Assets
Trends in Assets, Liabilities and Net Assets Current assets（Ｕｐ ¥ 8,091 million from Current liabilities (Ｕｐ¥ 533 million from previous period） previous period) Liabilities/ Assets Cash and deposit: Accounts payable: Ｕｐ ¥ 3,784 million Net Assets Up ¥ 5,136 million from previous period from previou
Slide 9: Cash Flow Trend
Cash Flow Trend Cash Flows from Financing Activities 11,030 29,933 Issue of bond ¥ 10,000million Payment of dividend (¥ 1,989)million 19,049 25,192 20,206 19,381 Cash Flows from Operating Activities 7,932 Income before income taxes and minority interest 10,862 6,114 (¥ 14,510)million Depreciatio
Slide 10: 2. Management Strategy Forward
2. Management Strategy Forward Copyright THK CO.,LTD.2010. All rights reserved.
Slide 11: 2-1. Current Management Environment
2-1. Current Management Environment Copyright THK CO.,LTD.2010. All rights reserved.
Slide 12: Current Management Environment
Current Management Environment Demand expands in a mid/long term. But a careful steer is necessary for the short term. << Growth Driver >> << Response to THK >> Increasing the rate of numerical-controlled Globalization machine tools made in developing countries New Businesses Current Position Surviv
Slide 13: 2-2. Strategy of THK
2-2. Strategy of THK Copyright THK CO.,LTD.2010. All rights reserved.
Slide 14: Long-term Management Target: Globalization
Long-term Management Target Overseas Market: Full-scale globalization Overseas Sales: ¥150 billion Globalization Overseas Sales Ratio: 50% Expansion of Business Areas Consolidated Net Sales: ¥300 million Operating Margin: 20% ROA: 15% Domestic Market: Full-scale operation in the consumer products ar
Slide 15: 2-3. Globalization
2-3. Globalization Copyright THK CO.,LTD.2010. All rights reserved.
Slide 16: Population Distribution in the World
Population Distribution in the World World Population in 2005 “6.5 billion” breakdown by region Oceania North America 0.03billion, 1% 0.34billion, 5% Latin America 0.56billion, 9% East Asia Asia Europe 1.52billion, 23% 3.94billion of 0.73 billion, 11% people, 60% Southeast Asia 0.55billion, 9% Afric
Slide 17: Business Deployment in Asia
Business deployment in Asia 1,328 millions of people 2,103.5 billions of dollars Manufacturing 288.3 Sales Population China billion Sales ： 19 Production value in the secondary Manufacturing ： 4 49 million Korea 1,118 Sales ： 13 million Manufacturing ： 1 industry 124.7 billion 24 million Taiwan Sale
Slide 18: Machine Tool Production in China and the NC Ratio
Trends in the Number of Machine Tool Productions in China and the NC Ratio Japan （%） 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 50 45 40 35 30 25 20 Number of machine tool productions in China NC Ratio in Japan 15 10 5 NC Ratio in China 0 91 92 93 94 95 96 97 98 99 2000 2001 2002 20
Slide 19: Expansion of Sales Network in China
Expansion of Sales Network in China SHENYANG Sales in China /Consolidated Sales C h in a TIANJIN DALIAN THK 5% BEIJING 2010/3 Net Sales THK China 115,330 Millions of Yen THK LIAONING JINAN DALIAN XIAN QINGDAO User breakdown of SUZHOU Sales in China NANJING SHANGHAI t r an spo THK WUXI O th e r r t a
Slide 20: Order of Our Chinese Business
Order of Our Chinese Business % 280 Order 274.6 300 millions of Y/Y 240 CNY 162.2 200 Marginal profit ratio 200 57.5 29.2 28.4 100 160 0 120 (16.6) (48.2) (46.1) (32.8) (100) 80 40 (200) 0 (300) 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2007 2008 2009 2010 ※Order is based on the achi
Slide 21: 2-4. New Businesses
2-4. New Businesses Copyright THK CO.,LTD.2010. All rights reserved.
Slide 22: Point of Development of New Business Areas
Point of “Development of New Business Areas” Market Transform Market scale Market scale Consumer Goods Vehicle Electrical appliance Housing Development of new business areas sliding bearing Ball and Roller bearing Bearing with caged-ball Capital Goods slide guide LM Guide LM Guide with caged-ball Mo
Slide 23: Development of FAI Division
Development of FAI Division FAI Division Management Function Production Function Headquarters of Rhythm Sales Engineering Rhythm Kyushu Production Control Rhythm North America Engineering (Test and Research) RHYTHM GUANGZHOU CORPORATION Process Engineering THK RHYTHM (THAILAND) Gifu Plant THK Manufa
Slide 24: Global Sales and Production Network THK + Rhythm
Global Sales and Production Network THK + Rhythm Europe Japan FAI Manufacturing： 1 FAI Manufacturing ： 4 THK Sales： 11 THK Sales： 50 TME Rhythm Kyushu Gifu Plant Rhythm Gokyu Plant Rhythm Inasa Plant TMA THK/Rhythm Manufacturing THK/Rhythm Sales Asia TRTC RGC North America RNA FAI Manufacturing ： 2
Slide 25: Synergy of THK (FAI Division) and Rhythm
Synergy of THK (FAI division) and Rhythm The main body of the FAI Division has been consolidated and established at the Headquarters of Rhythm Headquarters of Rhythm Corporation (in Hamamatsu) (Hamamatsu) Management ⇒A system that enables the acceleration of expansion of types of vehicles, to which
Slide 26: Development of IMT Division
Development of IMT Division IMT Division IMT Sales Support Department IMT Engineering Department IMT Sales Engineering Department IMT Design Section, Yamaguchi Sales Engineering Section Ⅱ EA Customer support section IMT Design Section, Mishima Sales Engineering Section I IMT Design Section, Kofu EA
Slide 27: Emphasis Activity Items in FY2010
Emphasis Activity Item in FY2010 Development Procurement Production Sales Services, etc. Strengthening of cost control Promotion of the P25 Project Strengthening of the Japan Promotion of global actuator product business Increase of sales in new procurement Improvement of hourly Improvement of the U
Slide 28: 3. Fiscal Year Ending March 2011 Financial Forecast
3. Fiscal Year Ending March 2011 Financial Forecast Copyright THK CO.,LTD.2010. All rights reserved.
Slide 29: Orders Received by Region
Orders Received by Region THK Holdings of America, L.L.C. THK Europe B.V. Y/Y, millions of dollars 102.4 80 Y/Y, millions of Euro 81.0 2.5 (1.8) 1.8 (25.5) (54.3) (36.6) 12.8 40 (45.1) 15.9 9.2 60 (1.7) (5.5) (31.8) (38.2) 40 (59.7) (57.2) 20 20 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 1-3 4-6 7-
Slide 30: Financial Forecast (Consolidated)
Financial Forecast (Consolidated) 2011.3 FY 2010.3 FY 2009.3 FY ( Forecast ) Net Sales 176,000 115,330 179,269 Y/Y +52.6% △35.7% △14.1% Operating 16,000 △9,508 8,523 Income Y/Y - - △68.4% Ordinary 16,500 △8,797 8,329 Income Y/Y - - △69.2% Net Income 10,200 △14,300 1,204 Y/Y - - △93.4% ※ Copyright TH
Slide 31: Strategy for Growth of THK: Full Scale Globalization
Strategy for Growth of THK Consolidated Sales ¥ 300 billion ROA15％ Full Scale Globalization Achieve long-term management target FY 2010 Return to growth strategy Expansion of sales network In Asia P25 Project IMT Division ACE Division FAI Division Development of New Business Areas Copyright THK CO.,
Slide 32: Trends in Orders, Sales and Backlog
Support Statement –Trends in orders, sales and backlog （domestic・unconsolidated） – (¥ 1million) 35,000 Orders 30,000 Sales Backlog 25,000 20,000 15,000 10,000 5,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6
Slide 33: Trends in Orders Classified by Industry
Support Statement –Trends in orders classified by industry (unconsolidated）– (¥ 1million) 12,000 Machine tool 10,000 General Machinery Electronics 8,000 6,000 4,000 2,000 0 1-3 4-6 7-9 10-121-3 4-6 7-9 10-121-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-121-3 4-6 7-9 10-121-3 4-6 7-9 10-121-3 4-