Riso Kagaku Corporation · TSE:6413
Riso Kagaku — FY2020 Earnings Presentation
29 slides from Riso Kagaku's earnings presentation, May 2020
Slide 1: Briefing on Business Results FY2020
Briefing on Business Results - FY2020- （From April 1, 2019 to March 31, 2020） RISO KAGAKU CORPORATION May, 2020
Slide 2: Table of Contents
Table of Contents 1． Corporate Data Slide 2 2． FY2020 Consolidated Financial Results Slide 7 3． FY2020 Activity Overview Slide 13 4． Forecast for FY2021 Slide 20 5． Shareholders Return Slide 22 ■Notes on the descriptions in this briefing The amounts indicated have been rounded down to a million yen
Slide 3: 1 Corporate Data
1 Corporate Data 1.1 Corporate Data 1.2 Business Outline and Domains 1.3 Change in the Inkjet Business’ Share of Consolidated Net Sales 1.4 Market Position of RISO Products 2
Slide 4: 1.1 Corporate Data (as of March 31, 2020)
1.1 Corporate Data （as of March 31, 2020） Corporate Name RISO KAGAKU CORPORATION President & CEO Akira Hayama Head Office 5-34-7 Shiba, Minato-ku, Tokyo 108-8385, Japan Established September 2, 1946 Incorporated January 25, 1955 Paid-in Capital ¥14,114,985,384 Group Employees 3,549 G
Slide 5: 1.2 Business Outline and Domains
1.2 Business Outline and Domains Printing equipment business ■ Inkjet Business: Full Color Inkjet Printer ORPHIS ORPHIS GD9630 ■ Digital Duplicating Business： High Speed Digital Duplicator RISOGRAPH Others RISOGRAPH ■ Real Estate Business MF935W ■ Print creating business 理想科学工業株式会社 https://www.riso.
Slide 6: 1.3 Change in the Inkjet Business' Share of Consolidated Net Sales
1.3 Change in the Inkjet Business’ Share of Consolidated Net Sales (Share) Change in the share of consolidated net sales accounted for by % the inkjet business (past ten years) 60 about52% 50 40 about31% 30 GD series (Y2016) 20 FW series (Y2016) EX series (Y2013) 10 X series (Y2009) (Fiscal Year) 0
Slide 7: 1.4 Market Position of RISO Products
1.4 Market Position of RISO Products Print Speed, Productivity RISO製品 120～150ppm RISO Products リソグラフ オルフィス デジタルプロダクションシステム RISOGAPH ORPHIS Digital production System POD 50～70ppm MFP LBP 20～30ppm Unit Price, 本体価格・専門性 Professional Use ¥300,000～¥500,000 ¥1,000,000～¥5,000,000 ¥10,000,000～¥90,000,000 Dep
Slide 8: 2 FY2020 Consolidated Financial Results
2 FY2020 Consolidated Financial Results 2.1 Performance Overview 2.2 Results by Segment 2.3 FY2020 - Points 2.4 Consolidated Balance Sheet 7
Slide 9: 2.1 FY2020 - Performance Overview
2.1 FY2020 - Performance Overview （Millions of Yen） Difference Calculated with FY2019 FY2020 (year-on-year) exchange rates of the previous year Amount Growth Growth％ ％ Net sales 83,900 78,066 ▲5,834 ▲7.0% ▲4.9% Gross profit 47,611 44,296 ▲3,315 ▲7.0% ▲4.1% (Gross profit ratio) (56.7%) (56.7%) Sellin
Slide 10: 2.2 FY2020 - Results by Region (Net sales)
2.2 FY2020 - Results by Region Net sales （Millions of Yen） FY2019 FY2020 Difference Amount Ratio Amount Ratio Amount Growth Printing equipment business 82,556 98.4% 76,704 98.3% ▲5,852 ▲7.1% Japan 45,123 53.8% 43,370 55.6% ▲1,753 ▲3.9% Overseas 37,432 44.6% 33,334 42.7% ▲4,098 ▲10.9% Americas 5,214
Slide 11: 2.2 FY2020 - Results by Region (Operating income)
2.2 FY2020 - Results by Region Operating income （Millions of Yen） FY2019 FY2020 Difference Amount Growth Printing equipment business 3,268 2,021 ▲1,246 -38.1% Japan 2,660 2,686 +26 +1.0% Overseas 608 ▲664 ▲1,272 ― Americas ▲749 ▲959 ▲210 ― Europe 576 ▲87 ▲663 ― Asia 781 383 ▲398 -51.0% Others 503 52
Slide 12: 2.3 FY2020 - Points
2.3 FY2020 - Points ■Net sales decreased and operating income decreased year on year. ■Net sales decreased 7.0% and operating income decreased 32.6% year on year. (If exchange rate effects are excluded, net sales decreased 4.9% and operating income decreased 13.7% year on year.) ■Sales fell as a res
Slide 13: 2.4 FY2020 - Consolidated Balance Sheet
2.4 FY2020- Consolidated Balance Sheet （millions of Yen） Items FY2019 FY2020 Items FY2019 FY2020 Current assets 47,875 42,027 Current liabilities 22,871 19,818 Cash and deposits 17,359 13,019 Notes trade and accounts payable- 11,546 9,618 Notes and accounts receivable-trade 15,246 13,236 Income taxe
Slide 14: 3 FY2020 Activity Overview
3 FY2020 Activity Overview 3.1 The 7th Medium-term Management Plan “RISO Vision 22” 3.2 Management Policies for FY2021 3.3 FY2020 - Activity Overview 13
Slide 15: 3.1 The 7th Medium-term Management Plan "RISO Vision 22"
3.1 The 7th Medium-term Management Plan “ RISO Vision 22” The 7th Medium-term Management Plan “RISO Vision 22” (From April 1, 2019 to March 31, 2022) <Management Objectives> Enhance profitability by expanding IJ business and improving efficiency on a Group-wide basis <Priority Actions> 1. Japanese D
Slide 16: 3.2 Management Policies for FY2021
3.2 Management Policies for FY2021 Achieve the following targets while dealing with the global crisis caused by the spread of the Coronavirus. 1. Strengthen both IJ and RG Business, Expand VALEZUS Business 2. Regenerate the (Domestic) Sales Division’s culture and improve unprofitable overseas subsid
Slide 17: 3.3 Activity Overview - New Brand VALEZUS
3.3 FY2020 - Activity Overview ■New Brand “VALEZUS” A new brand of high-speed inkjet printers for the production printing market “VALEZUS T2100” launched in fall 2019 * Launched first in North America and Europe ・Capable of high-speed color printing at 320 ppm on A4-sized paper ・Sales promoted for a
Slide 18: 3.3 Activity Overview - New RISOGRAPH product
3.3 FY2020 - Activity Overview ■ New RISOGRAPH product We will release RISOGRAPH SF Ⅱ series, 4 modeles, in July 2019. ・ Improved convenience of standard models ・ The first in the industry to acquire the “ink green mark” for digital duplicator ink RISOGRAPH SF935Ⅱ 理想科学工業株式会社 https://www.riso.co.jp/
Slide 19: 3.3 Activity Overview - Print Creating Business
3.3 FY2020 - Activity Overview ■Print Creating Business Compact digital screen maker “MiScreen a4” launched in September 2019 ・A screen maker that enables simple and easy screen printing onto surfaces such as cloth ・Oriented toward a wide range of creators, from professionals to amateurs MiScreen a4
Slide 20: 3.3 Activity Overview - Construction of R&D facilities
3.3 FY2020 - Activity Overview ■Construction of R&D facilities ■Location: Tsukuba City, Ibaraki Prefecture ■Construction purpose: to create an environment for new business development ■Construction cost: approximately 1.6 billion yen ■Completion of construction: scheduled for June 2020 Image of the
Slide 21: 4 Forecast for FY2021
4 Forecast for FY2021 理想科学工業株式会社 https://www.riso.co.jp 20
Slide 22: Forecast for FY2021
4 Forecast for FY2021 ■At this point it is not clear when the issue of COVID-19 will be resolved, and it is difficult to make a reasonable calculation of the impact on the Group’s results. ■We have drawn up earnings forecasts for the next fiscal year based on the hypothesis that business activity bo
Slide 23: 5 Shareholders Return
5 Shareholders Return 理想科学工業株式会社 https://www.riso.co.jp 22
Slide 24: 5. Shareholders Return - Basic Policy
5. Shareholders Return-Basic Policy Basic policy for the distribution of earnings ■ Allocate an appropriate portion of earnings in accordance with our business results while continuing to strengthen our corporate structure ■ Strive to provide a stable dividend *Consider the repurchasing of shares as
Slide 25: 5. Shareholders Return
5. Shareholders Return ■Dividend Forecast for FY2020 : 15 yen per share ■ Purchase of Treasury Stock: ・Total Number of shares purchased during FY2020 : 1,099,100 shares ・Total purchase cost during FY2020 : 1,999 million yen FY2020 From May 21, 2019 From August 20, 2019 From November 13, 2019 From Fe
Slide 26: 5. Shareholders Return
5. Shareholders Return ■Dividend Forecast for FY2021 : not be paid 理想科学工業株式会社 https://www.riso.co.jp/ 25
Slide 27: 5. Shareholders Return
5. Shareholders Return （Millions of Yen） FY2018 FY2019 FY2020 Profit attributable to the owner of parent 3,033 2,771 683 Cash dividends per 60 60 15 share (Yen) Cash dividends paid(A) 2,202 2,148 520 Repurchase of treasury stock (B) 1,499 2,199 1,999 Total return (A)+(B) 3,701 4,347 2,519 Payout rat
Slide 28: (reference data)
（reference data） （Millions of Yen） FY2019 FY2020 １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q Net sales 20,564 19,528 19,963 23,843 19,105 20,648 17,852 20,459 Gross profit 12,198 10,793 11,878 12,740 11,442 11,437 10,240 11,175 (Gross profit ratio) (59.3%) (55.3%) (59.5%) (53.4%) (59.9%) (55.4%) (57.4%) (54.6%) Selling
Slide 29: (reference data)
（reference data） Net sales （Millions of Yen） FY2019 FY2020 １Q ２Q ３Q 4Q １Q ２Q ３Q 4Q Printing equipment business 20,218 19,204 19,618 23,515 18,785 20,299 17,495 20,123 Japan 10,918 10,786 9,899 13,518 10,215 12,187 8,486 12,480 Overseas 9,299 8,417 9,719 9,996 8,569 8,112 9,009 7,642 Americas 1,238 1