Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2011 Earnings Presentation
23 slides from Sumitomo Heavy Industries's earnings presentation, May 9, 2012
Slide 1: Part 1: Financial Summary for FY2011 and Projections for FY2012
Part 1: Financial Summary for FY2011 and Projections for FY2012 May 9, 2012
Slide 2: Financial Summary for FY2011
1-1 Financial Summary for FY2011 ¾ Key points (1) Orders Unit: JPY billion ・ Increased for machinery components, construction machinery, as well as 2011 2010 Change environmental facilities and plants in comparison with the previous term. Orders 571.3 534.9 36.4 ・ Increased for overseas primarily. (
Slide 3: Orders and Net Sales
1-2 Orders and Net Sales Orders Net sales Mass-produced machinery decelerated Performing steadily in all segments. beginning in the second half of FY2011, due to the appreciation of the yen. No orders were received for new ship building in FY2011. Unit: JPY billion 400 400 330.0 301.6 4.6 Others 291
Slide 4: Operating Income by Segment
1-3 Operating Income by Segment Unit: JPY billion ¾ Comparisons with previous fiscal year 2011 2010 Change <Machinery components> Machinery Profits declined due to the impact of components 4.2 4.9 (0.6) currency exchange fluctuations, deteriorating profitability for large scale products. Precision <
Slide 5: Change in Operating Income (FY2010 to FY2011)
1-4 Change in Operating Income (FY2010 to FY2011) Unit: JPY billion Improvement Impact of of cost rate, Currency increased etc. Exchange rate Revenue ＋3.0 fluctuations ＋17.6 (3.8) Sales 47.1 45.8 administrative costs, etc. Kyoto (10.4) Project (5.0) 2010 2011 May 9, 2012
Slide 6: Consolidated Balance Sheet
1-5 Consolidated Balance Sheet Unit: JPY billion ¾ Accounts receivable and inventory assets increased as orders and net sales increased. End March End March End March End March Change Change 2012 2011 2012 2011 Current assets 429.0 365.3 63.7 Liabilities 409.7 357.4 52.2 Notes and accounts Cash and
Slide 7: Consolidated Cash Flow Statement
1-6 Consolidated Cash Flow Statement Unit: JPY billion Category FY2011 FY2010 Change Operating activities 23.3 36.5 (13.2) Income before income taxes and 38.2 45.1 (6.9) minority interests Depreciation 17.8 17.9 (0.1) Working capital (23.6) (10.1) (13.5) Others (income taxes etc.) (9.1) (16.4) 7.4 I
Slide 8: Performance Forecast for FY2012 by Segment
1-7 Performance Forecast for FY2012 by Segment ¾ Key Points Unit: JPY billion (1) Orders increase for all operations except environmental facilities and plants. Growth in construction machinery continues, primarily overseas. (2) Net sales decrease for industrial machinery and ships. (3) Although ope
Slide 9: Performance Forecast for FY2012
1-8 Performance Forecast for FY2012 ¾ Key Points ▪ Dividends increased from JPY8 in FY2010 to JPY10 in FY2011. ▪ Dividends will remain at JPY10 for FY2012. Unit: JPY billion Forecast Forecast Forecast Record 1H FY2012 2H FY2012 FY2012 FY2011 Orders 290.0 310.0 600.0 571.3 Net Sales 300.0 330.0 630.0
Slide 10: Part 2: Management Strategy
Part 2: Management Strategy May 9, 2012
Slide 11: Transition of Orders and Net Sales
2-1 Transition of Orders and Net Sales Orders Net Sales Gradually increase for machinery components, precision Increasing trend for machinery components, precision machinery and construction machinery. machinery and construction machinery. Markets for ships and heavy machinery have not Net sales dec
Slide 12: Order-receiving Environment for FY2012 by Segment
2-2 Order-receiving Environment for FY2012 by Segment ■ Recovering trend for mass-produced machinery. ■ Ordering environment remains quite severe for heavy machinery. Unit: JPY billion FY2012 amount of orders Segment Order-receiving environment Forecast Forecast Forecast 1H 2H Annual ・ Sluggish grow
Slide 13: Machinery Components
2-3 Machinery Components Unit: JPY billion Power transmission & control: Orders 75 FY2011: All models underwent a favorable turn with an increase in received orders and net sales over the previous 50 term, thanks to market expansion in emerging countries. 49.2 45.8 46.0 51.0 25 FY2012: Increase orde
Slide 14: Precision Machinery
2-4 Precision Machinery Unit: JPY billion Orders Plastic machinery: 100 79.0 FY2011: Orders received and net sales both increased, due to 74.1 69.9 70.0 Advanced recovery of market conditions in Europe. Additional orders were 37.4 43.0 precision 50 35.2 34.0 machinery received in the second half of
Slide 15: Construction Machinery
2-5 Construction Machinery Unit: JPY billion Orders Hydraulic excavators: 100 86.4 86.0 89.0 FY2011: Both orders received and net sales increased 15.3 75.9 16.0 19.0 Mobile cranes despite disruptions to the supply chain caused by the 16.1 earthquake. There was a slowdown in China. 50 71.1 70.0 70.0
Slide 16: Industrial Machinery
2-6 Industrial Machinery Unit: JPY billion Orders Forging press: 50 FY2011: Brisk business with products for domestic automobile manufacturers thanks to transplantation of Forging press Material Handling production to overseas locations. systems 43.4 Logistics & parking FY2012: Accelerate overseas i
Slide 17: Ships
2-7 Ships Unit: JPY billion Ships: 50 Orders FY2011: Orders received were zero with no sign of market recovery in sight. The net sales were from seven ships, one vessel less than the previous year. 10.0 8.0 3.9 2.8 FY2012: Scaling down begin for the ship building 0 1H-FY11 2H-FY11 Forecast Forecast
Slide 18: Environmental Facilities and Plants
2-8 Environmental Facilities and Plants Unit: JPY billion CFB boilers for IPP: Orders 50 44.8 FY2011: Although some boilers for industrial electric power generation 40.2 3.3 40.0 42.0 6.0 Pressure were active, orders remained at the same level as the previous year, 8.1 6.0 vessels, etc. whereas net
Slide 19: Regional Net Sales (by Segment)
2-9 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 Ships 150 Europe Industrial machinery 100 China Construction m
Slide 20: Notes on activities taken in ship building business
Notes on activities taken in ship building business 2-10 ■ Market environment The market conditions for marine transport and ship building continues to remain sluggish, due to the stagnant global economy and excessive supply of newly built ships. ■ Responsive action taken by us thus far: Pace of bui
Slide 21: Notes on the incinerated ash melting facility for the City of Kyoto
Notes on the incinerated ash melting facility 2-11 for the City of Kyoto ■ Current status ¾ From May 2011 to November 2011, trial operations were implemented on the incinerated ash melting facility. ¾ In November 2011, the trial operations stopped. ¾ From November 2011 to April 2012, ・Inspections we
Slide 22: Management Policies
2-12 Management Policies FY2012: The aim is for a “Strong and Powerful SHI” that can pursue the global markets and come out on top of the competition, based on basic policies of “globalization” and “innovation”. 9Abide Abide by by Management Management Discipline Discipline and and Financial Financi
Slide 23: Forward-looking statements notice
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 chang
Sumitomo Heavy Industries — FY2011 Earnings Presentation on 6ix