Toyo Engineering Corporation · TSE:6330
Toyo Engineering — FY2018 Earnings Presentation
16 slides from Toyo Engineering's earnings presentation, May 15, 2019
Slide 1: Outline of Financial Results
Mission: Engineering for Sustainable Growth of the Global Community Vision: Global Leading Engineering Partner Values: Integrity, Creativity, Diversity, Learning, Team Fiscal Year Ended March 2019 OUTLINE OF FINANCIAL RESULTS May 15, 2019 Toyo Engineering Corporation
Slide 2: Contents
Contents Page Performance Summary Versus Forecast for 2019/3 3 Versus Prior Year 5 Profit Attributable to Owners of Parent Breakdown 6 Net Sales 7 Financial Summary Balance Sheet 8 Interest Bearing Debt Balance 9 Cash Flows 10 New Orders New Orders 11 Backlog of Contracts 12 Forecast Forecast for 20
Slide 3: Performance Summary: Versus Revised Forecast for 2019/3
Performance Summary Versus Revised Forecast for 2019/3 Loss of Ethylene Project in USA, in spite of profit improvement by other projects, brought about final losses Almost achieved the New Orders’ goal JPY billion 2019/3 Achieve- Difference Forecast Result ment *1 Rising costs of Ethylene Projec
Slide 4: Performance Summary: Versus Initial Forecast for 2019/3
Performance Summary Versus Initial Forecast for 2019/3 JPY billion Profit attributable to owners of parent Versus the initial forecast 2019/3 Initial Forecast as of Result May.15, 2018 Loss of Ethylene Project in USA 2019/3 1.0 (0.8) 0 (2.7) Profit improvement 8.5 Increase in of other projects tax e
Slide 5: Performance Summary: Versus Prior Year
Performance Summary Versus Prior Year JPY billion 2018/3 2019/3 Difference Net sales 335.6 294.9 (40.7) Gross profit (12.5) 10.6 23.1 *1 Improvement in gross profit due to Gross profit margin -3.7% 3.6% 7.3% decreasing loss on Ethylene Project in USA SG&A expenses 20.4 16.2 4.2 *2 Cost reduction mai
Slide 6: Profit Attributable to Owners of Parent Breakdown
Performance Summary Profit Attributable to Owners of Parent Breakdown JPY billion Equity in earnings Others Income Tax (16.2) of affiliates 2.6 (4.2) 2019/3 0 6.4 (0.8) (22.6) 33.2 SG&A expenses Loss of Other Project Non-operating Ethylene & income & expenses Project Subsidiaries 9.0 in USA Gross pr
Slide 7: Net Sales
Net sales JPY billion 2019/3 Net sales : JPY 294.9 billion China 4.3 Central and Others 7.8 South America Others 3.3 Petrochemicals Pharmaceuticals etc., 0.8 10.0 140.2 1% Japan 3% North America 49.1 1% 50.1 Chemicals/ 3% 1% 17% Fertilizers 17% Russia and 48.1 16% Central Asia 7.2 2% Region Product
Slide 8: Balance Sheet
Balance Sheet JPY billion Assets 2018/3 2019/3 Difference Liabilities and net assets 2018/3 2019/3 Difference Current assets 221.3 212.7 (8.6) Current liabilities 198.4 178.4 (20.0) Cash and deposits 111.0 101.7 (9.3) Short-term interest bearing debt 7.1 13.4 6.3 Marketable securities 1.0 0.0 (1.0)
Slide 9: Interest Bearing Debt Balance
Interest Bearing Debt Balance JPY billion 32.6 31.8 32.7 30.8 2016/3 2017/3 2018/3 2019/3 Interest bearing debt ratio Debt equity ratio (times) Net debt (JPY billon) 1.23 13.6% 12.2% 0.90 10.1% 10.0% 0.64 0.62 (65.1) (75.6) (91.4) (90.8) 2016/3 2017/3 2018/3 2019/3 2016/3 2017/3 2018/3 2019/3 2016/3
Slide 10: Cash Flows
Cash Flows JPY billion 2016/3 2017/3 2018/3 2019/3 Operating activities 46.3 18.9 (22.8) (25.8) Investing activities (11.7) (16.6) 6.3 1.3 Financing activities 1.0 (1.5) (1.1) 16.7 Net increase/decrease 33.6 (1.4) (16.1) (8.6) in cash Free cash flow 34.6 2.3 (16.4) (24.4) Cash and cash equivalents,
Slide 11: New Orders
New Orders JPY billion Region 443.5 443.5 Product 309.3 298.0 309.3 298.0 116.7 116.7 2016/3 2017/3 2018/3 2019/3 2016/3 2017/3 2018/3 2019/3 Japan 38.2 22.1 71.4 121.9 Petrochemicals 219.1 6.7 50.3 172.3 Southeast Asia 129.6 64.7 81.4 67.8 Oil & Gas - 27.3 30.7 18.5 Southwest Asia, Power / Railways
Slide 12: Backlog of Contracts
Backlog of Contracts JPY billion 823.0 823.0 Region Product 492.6 492.6 448.6 426.3 448.6 426.3 2016/3 2017/3 2018/3 2019/3 2016/3 2017/3 2018/3 2019/3 Japan 111.6 61.2 64.1 135.9 Petrochemicals 494.7 249.4 147.4 169.9 Southeast Asia 338.4 230.3 142.6 75.4 Oil & Gas 21.5 6.8 24.1 23.6 Southwest Asia
Slide 13: Forecast for 2020/3
Forecast for 2020/3 JPY billion 2019/3 2020/3 Defference Result Forecast Net sales 294.9 240.0 (54.9) Gross profit 10.6 21.5 10.9 Gross profit margin 3.6% 9.0% 5.4% SG&A expenses 16.2 18.5 (2.3) Operating income (5.6) 3.0 8.6 Operating income margin -1.9% 1.3% 3.1% Non-operating income and expenses
Slide 14: Reference: Historical Data
-Reference- Historical Data 2020/3 2016/3 2017/3 2018/3 2019/3 Forecast Net sales JPY billion 299.8 431.9 335.6 294.9 240.0 Gross profit JPY billion 30.5 15.9 (12.5) 10.6 21.5 Gross profit margin % 10.2% 3.7% -3.7% 3.6% 9.0% SG&A expenses JPY billion 19.4 17.9 20.4 16.2 18.5 Operating income JPY bil
Slide 15: Reference: Historical Data Chart
-Reference- Historical Data Chart JPY billion Net sales Gross profit Operating income 431.9 30.5 11.0 21.5 3.0 335.6 299.8 294.9 15.9 240.0 10.6 (2.0) (5.6) (12.5) (32.9) 2016/3 2017/3 2018/3 2019/3 2020/3 2016/3 2017/3 2018/3 2019/3 2020/3 2016/3 2017/3 2018/3 2019/3 2020/3 Forecast Forecast Foreca
Slide 16: Toyo Engineering Corporation
Toyo Engineering Corporation URL https://www.toyo-eng.com For further questions on this material, please contact: Wataru IIDA General Manager Corporate Communications Department 2-8-1 Akanehama, Narashino, Chiba, Japan 275-0024 TEL +81-47-454-1681 E-mail ir@toyo-eng.com The forecasts given above are