Ebara Corporation · TSE:6361
Ebara — H1 2019 Earnings Presentation
24 slides from Ebara's earnings presentation, Aug 9, 2019
Slide 1: Results Presentation for Six Months Ended June 30, 2019
ERARA Results Presentation for Six Months Ended June 30, 2019 EBARA (6361) August 9, 2019 Looking ahead, going beyond expectations Ahead > Beyond EBARA corrorarion
Slide 2: Table of Contents
“ Table of Contents ERARA 1. Summary of Results 5. Topics IL Companywide P3 I Improve and Expand India Base in CT Business P12 I. Segment P4 . I. 50-year-model Concept Il. Net Sales by Region PS in EP Business P13 2. Results by Segment 6. Appendix : Summary 1 FMS Business‘? P6 L Orders P16 I EP Busi
Slide 3: Summary of Results – Companywide
Summary of Results – Companywide: Markets The oil and gas market transitioned at stable investment levels thanks to a recovery in downstream capex, including for petrochemical and petroleum refinery plants. The semiconductor market saw decreased demand on capital investment restraint among memor
Slide 4: Summary of Results – Segment
Summary of Results – Segment: Orders The FMS business is largely unchanged. The decline in EP business orders is due to exceptionally strong orders during the same quarter of the previous fiscal year. The decline in PM business orders is due to the decline in investments on the semiconductor m
Slide 5: Summary of Results – Net Sales by Region
Summary of Results – Net Sales by Region: Net sales increased in China, North America and the Middle East. The FMS business saw increased demand for pumps and compressors & turbines for petrochemical plants. Excluding China, net sales decreased in Asia and Japan. Net sales decreased due to a
Slide 6: Results by Segment - FMS
Results by Segment - FMS: Orders: JPY 161.7 billion（YoY +JPY 0.2 billion) Sales: JPY 154.2 billion（YoY -JPY 0.1 billion) Operating Income: JPY 5.3 billion（YoY ＋JPY 3.0 billion) ⇒ Increase income factors largely include improved profits for compressors & turbines. Pumps business Sales this fiscal y
Slide 7: Results by Segment – EP
Results by Segment – EP: Orders: JPY 30.5 billion (YoY –JPY 35.2 billion) Sales: JPY 32.1 billion (YoY ＋JPY 2.8 billion) Operating Income: JPY 3.0 billion (YoY ＋JPY 0.8 billion) Orders Multiple large-scale orders including DBO project and a long-term O&M contract in the same period last year resul
Slide 8: Results by Segment – PM
Results by Segment – PM: Orders: JPY 52.5 billion (YoY –JPY 20.0 billion) Sales: JPY 60.8 billion (YoY –JPY 5.8 billion) Operating Income: JPY 4.4 billion (YoY –JPY 5.6 billion) Orders Semiconductor market capital investments saw the trend of capital investment restraint and postponement by memory
Slide 9: Summary of Projection – Companywide
Summary of Projection – Companywide: We conducted a downward revision to the full-year earnings projections announced in May. This was conducted based on a consideration of 2Q earnings and on an evaluation of the impact of worsening external factors such as US- China trade friction and currency fluc
Slide 10: Summary of Projection – Segment
Summary of Projection – Segment: FMS Business Orders: JPY 320.0 billion (decrease of JPY 10.0 billion from previous target) Sales: JPY 321.0 billion (decrease of JPY 10.0 billion from previous target) Operating Income: JPY 15.5 billion (decrease of JPY 0.5 billion from previous target) Downward re
Slide 11: Projections for shareholder returns
Projections for shareholder returns: Per-share dividend forecast Interim dividend: Dividend of 30 yen as planned No change in forecast for year-end dividend of 30 yen for total annual dividend of 60 yen. Status of share repurchase We completed the share repurchase up to the equivalent of 15 bill
Slide 12: Topics (1) Strengthening CT business facility in India
Topics (1) Strengthening CT business facility in India: Details of initiatives We will expand functions at the India facility established in 2015 to improve profitability for the CT business by enhancing after-sales services for compressors and large-scale steam turbines. Function 1: Added IPO f
Slide 13: Topics (2) EP business 50-year model concept: Net sales composition
Topics (2) EP business 50-year model concept: Net sales composition EP business operations are divided into two categories: EPC and O&M. The O&M business represents the majority of sales and is the business capable of securing stable profits. Market environment in Japan Total waste emissions and
Slide 14: Topics (2) EP business 50-year model concept: Incinerator facility cycle
Topics (2) EP business 50-year model concept: Incinerator facility cycle In the past, incinerator facilities were rebuilt after approximately 20 years. Today, however, existing facilities are being used for longer as local municipalities strive for the effective use of resources. ⇒ In such an envi
Slide 15: Topics (2) Ebara technology enabling the 50-year model concept
Topics (2) EP business 50-year model concept: Ebara technology enabling the 50-year model concept Remote operational support The Fujisawa Field Support Center and regional facilities are linked via a network that enables the centralized monitoring of facility operating status. ⇒ Enables necessary
Slide 16: Appendix: Summary – Orders
“— 6. Appendix : Summary BARA Orders (in billion yen) 1-20 1-4Q FY18 FY19 Change FY18 FYLO Change Results Plan Results Results Plan a a ee eb d e ea te [nounced datinvan Mayas Mayans | Aw/9A9 FMS Business 161.5} 170.0) 161.7) +02 - 8.2) 326.2} 330.0} 320.0 -6.2} - 10.0 Pumps 84.9 85.0) 88.6) +36) +3
Slide 17: Appendix: Summary – Net Sales
“— 6. Appendix : Summary EBARA Net Sales in billion yen) 1:20 1-4Q FS FYI9 Fvi8 FYI9 Results, Plan Results Results Shonge: a b c fd fe [announced datein/aiyh Mayas FMS Business 154.3} 156.0) 154.2 =@al -17| 308.9} 331.0} 321.0) +12.0) -10.0 Pumps 90.5 90.0) 88.4 -2.0 -15) 172.0} 176.0) 176.0) +3.9 =
Slide 18: Appendix: Summary – Operating Income
“— 6. Appendix : Summary Operating Income (in billion yen) 1-2Q 1-4Q FY18 FY19 FY18 FY19 Change Change Results | Plan | Results Results Plan a b c-a cb d e | f | fd fe [ernounced date(vd/y) Mayas Maynans | Augie FMS Business 22 5.0 5.3 +30) +03 87 16.0 15.5 + 67) - 0.5) Pumps 5.2 45 56) +03) +11 5.9
Slide 19: Appendix: Summary – Backlog of Orders
“— 6. Appendix : Summary = Backlog of Orders {in billion yen) 2Q 4Q Fy18 Fy19 FY18 Fv19 Change Change Results Plan Results Results Plan a b ca | cb d e fd | fe [announced dati) Mey/i4/19 May/iaa | Aug/9/9 FMS Business 1997 223.3 214.7) + 15.0 785 209.3 208.3 208.3) -10 = Pumps 96.0 95.1 96.7 + 0.6)
Slide 20: Appendix: Summary – Net Sales by Region
“— 6. Appendix : Summary EBARA Net Sales by Region* (in billion yen) Fy19_1-2Q FMS Business EP Business PM Business Others Total Total 154.2 32 60.8 0.7 248.0 Japan 71.2 31.0 14.4 0.1 116.8 Asia (excl. Japan) 42.2 41 32.4 0.4 76.2 North America 15.3 - 8.9 0.1 244 Europe 9.9 = 3.5 0.0 13.5 Middle Eas
Slide 21: Appendix: Summary – Balance Sheets
—¢ 6. Appendix : Summary EBARA Balance Sheets FY182Q FY184Q Results Results Change a 6 ca <b Current Assets 462.4| 430.2| 424.4 FEW S57 Cash and deposits, Securities 179.7 112.2| 136.8| - 429 + 24.5) Notes and Accounts Receivable-trade 154.0 183.8) 156.3 +22 -275 Inventories 1174 122.6 121.2| + 3.8)
Slide 22: Appendix: Summary – Cash Flows
~~ 6. Appendix : Summary =n Cash Flows (in billion yen) 1-2Q 1-4Q FY18 FY19 FY18 FY19 Results | Results | "9° | Resutts Plan Change a | ob | ba ¢ d ve [ ec e-d |Announced date(m/d/y) Feb/14/19 Aug/9/19 ae 458| 30.2; -156, 346, 335| 290) -56] -45 operating activities a -81) -118| -37| -159| -403| -36
Slide 23: Appendix: Capex, Depreciation and Amortization, R&D Expenses
—¢ 6. Appendix : Summary Capital Expenditures, Depreciation and Amortization, R&D Expenses in bilion yen) 12Q 14Q Fy18 FY19 change Fv18 FY19 Change Results Results Results Plan a b bra c d © ec | ed [Announced date(m/d/y) Feb/14/19 FMS 3.8 3.8 +0.0 10.6 10.0 9.0 - 16 - 10 EP 0.3 0.3 +0.0 0.7 1.0 1.0
Slide 24: ERARA
ERARA This release contains forward-looking statements which involve certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which are valid only as of the date th