Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2012 Earnings Presentation
21 slides from Sumitomo Heavy Industries's earnings presentation, May 9, 2013
Slide 1: Financial Summary for FY2012 and Projections for FY2013
1 Financial Summary for FY2012 and Projections for FY2013 President and CEO Shunsuke Betsukawa May 9, 2013
Slide 2: Management Policies FY2013
2 Management Policies FY2013 ¾ Set FY2013 as a year of reversal to break out of the stagnate state and make a new start. ¾ Forge a solid footing through solid management. ¾ Achieve Net Sales JPY600 billion and Operating Income JPY30 billion as a minimum target and commitment figures. ・ Recover earni
Slide 3: Financial Summary for FY2012
3 Financial Summary for FY2012 ¾ Key points (1) Orders Unit: JPY billion ・Orders increased for environmental facilities and plants in comparison with 2011 2012 Change the previous term. ・Precision machinery orders decreased, Orders 571.3 550.7 (20.6) due to the sluggish performance of injection mold
Slide 4: Operating Income by Segment
4 Operating Income by Segment ¾ Comparisons with previous fiscal year Unit: JPY billion <Machinery components> Decreased due to delays in improving 2011 2012 Change business performance at overseas bases and deterioration of profitability for large Machinery scale gearboxes. components 4.2 2.8 (1.5)
Slide 5: Change in Operating Income (FY2011 to FY2012)
5 Change in Operating Income (FY2011 to FY2012) Currency exchange rate fluctuations Unit: JPY billion 1.3 47.1 Sales Kyoto administrative Project costs, etc. 6.0 (3.2) Impact of Large decreased Impact of scale Income decreased cancellation in ship sales (1.4) business (6.1) (8.6) Deterioration of co
Slide 6: Consolidated Balance Sheet
6 Consolidated Balance Sheet Unit: JPY billion ¾ Impairment loss of JPY17.4 billion in fixed assets, principally related to the ship business. JPY8.3 billion of which is from the re-assessment of land values. ¾ Accounts payable dropped with the decreased production of construction machinery in China
Slide 7: Consolidated Cash Flow Statement
7 Consolidated Cash Flow Statement ¾ Working Capital increased in Construction Machinery segment. Unit: JPY billion Category FY2011 FY2012 Change Operating activities 23.3 2.7 (20.6) Income before income taxes and minority interests 38.2 10.8 (27.4) Depreciation 17.8 18.3 0.5 Working capital (23.6)
Slide 8: Performance Forecast for FY2013
8 Performance Forecast for FY2013 ¾ Key Points ▪ Net Sales increased for FY2013 and the net income increased. ▪ Annual dividends JPY6 for FY2013. Unit: JPY billion Record Record Forecast Forecast Record Forecast 1H-FY12 2H-FY12 1H-FY13 2H-FY13 FY2012 FY2013 Orders 266.6 284.1 290.0 320.0 550.7 610.0
Slide 9: Machinery Components
9 Machinery Components Orders, Net Sales FY2012 : In addition to the sluggish performance of the European market, large-sized gearboxes for use in resource and energy fields were weak, resulting in a decrease for both the orders and net sales. FY2013 : Sluggish growth of facility investments domesti
Slide 10: Precision Machinery (Segment Changed)
10 Precision Machinery (Segment Changed) Orders, Net Sales <Plastic machinery> FY2012 : Orders received and net sales both decreased, due to severe electronics and electrical related markets for Asia. A sluggish performance for Europe overall resulted in a decreased number of orders received for the
Slide 11: Construction Machinery
11 Construction Machinery Orders, Net Sales <Hydraulic excavators> FY2012 : A robust trend was recorded domestically in Japan and North America, but a deceleration in growth occurred in Indonesia during the second half, in addition to a sluggish performance of demand in China, resulting in a decreas
Slide 12: Industrial Machinery (Segment Changed)
12 Industrial Machinery (Segment Changed) Orders, Net Sales FY2012 : Large presses performed well in terms of the orders received among industrial equipment. Material handling systems experienced a decline in large projects domestically in Japan and overseas developments were sought, but conditions
Slide 13: Ships
13 Ships Orders FY2012 : An order for one Aframax tanker was received in the fourth quarter. This resulted in two ships as an order backlog at the end of FY2012. FY2013 : Currency exchange trends are moving in a positive direction but the US dollar based ship prices continue to stay at a low level,
Slide 14: Environmental Facilities and Plants
14 Environmental Facilities and Plants Orders, Net Sales FY2012 : Orders for boilers increased domestically in Japan primarily in biomass related fields, whereas projects in Indonesia recorded active trading overseas, which resulted in an increased number of orders, however net sales decreased due t
Slide 15: Performance Forecast for FY2013 by Segment
Performance Forecast for FY2013 by Segment 15 (Segment Changed) ¾ Key Points Unit: JPY billion (1) Orders are expected to increase except for environmental facilities & plants. Machinery components and Construction machinery are expected to continue with growth primarily overseas. (2) Net Sales are
Slide 16: Regional Net Sales (by Segment)
16 Regional Net Sales (by Segment) ¾ Endeavors are being made to increase the sales of machinery components, Unit: JPY billion precision machinery and construction machinery in all regions. Others Environmental facilities and plants 150.0 単位：億円 Ships 150.0 Europe China Industrial machinery 100.0 Con
Slide 17: Notes on the overcharging of expenses related to Ministry of Defense contracts
Notes on the overcharging of expenses 17 related to Ministry of Defense contracts ■ Summary Our company, along with Sumiju Tokki Service Co., Ltd., our wholly owned subsidiary company, received an order by the Ministry of Defense (MOD) to suspend of bidding rights of both companies in May 2012, due
Slide 18: Notes on Organizational reforms
18 Notes on Organizational reforms An organizational reform was implemented in order to improve the earning capacity of heavy machinery related businesses, as the first stage of the corporation-wide structural reforms. The businesses of industrial equipment and material handling systems will be nurt
Slide 19: Notes on activities taken in ship building business
19 Notes on activities taken in ship building business ■ Market environment The market conditions for marine transport and ship building continue to remain sluggish, due to the stagnant global economy and excessive supply of newly built ships. ■ Responsive action taken by us thus far It is difficult
Slide 20: Notes on the incinerated ash melting facility for the City of Kyoto
Notes on the incinerated ash melting facility 20 for the City of Kyoto Progress is currently being made according to schedule, as described below. Corporation-wide efforts are being made in order to hand over a facility that is safe and can be used with confidence. May to November 2011 Trial run of
Slide 21: Forward-looking statements disclaimer
21 21 All forward-looking statements regarding the company’s future performance are based on information currently available to Sumitomo Heavy Industries and determined subjectively. Future performance is not guaranteed and all information related to future performance contained herein is subject to
Sumitomo Heavy Industries — FY2012 Earnings Presentation on 6ix