Slide 1: FY18/12 Results Briefing
TSE 1st Section, 6143 FY18/12 Results Briefing February 21, 2019 Sodick Co., Ltd.
Slide 2: Table of Contents
Table of Contents Consolidation Results for FY17/12 I. FY18/12 Financial Results Summary 4 II. Figures for the Purpose of Comparison 17 III. FY19/12 Financial Results Projections 21 IV. Shareholder Return 26 V. Med-term Plan 28 (Reference Materials) 30 2
Slide 3: Consolidation Results for FY17/12
Consolidation Results for FY17/12 The Company changed its financial closing date from March 31 to December 31, effective from FY2017, eliminating the three-month difference in fiscal year-end between the parent and its subsidiaries in China. The year ended December 31, 2017(FY17/12) is an irregula
Slide 4: I. FY18/12 Financial Results Summary
I. FY18/12 Financial Results Summary
Slide 5: Financial Results Highlights (on a Financial Report Basis)
Financial Results Highlights (on a Financial Report Basis) Both net sales and operating income increased to a record high thanks to an increase in the number of EDMs sold mainly in Greater China. Gross profit margin improved due to a substantial increase in the number of EDMs sold and greater pr
Slide 6: Operating Income Margin
Ratio of Operating Income to Net Sales (Quarterly) In China, orders received had slowed down since the third quarter due to a seasonal factor of demand decrease after the early fall every year in the country, a decrease in demand for smartphone-related items, and the apparent postponement of inves
Slide 7: Financial Results by Segment (on a Financial Report Basis)
Financial Results by Segment (on a Financial Report Basis) (million yen) Machine tool segment FY17/12 FY18/12 FY2018 Full- In China, while we saw continued demand mainly in growing year Projections markets such as automotive-related industries and semi-conductor- Actual Actual (revised on Nov. 13)
Slide 8: Net Sales by Segment (on a Financial Report Basis)
Net Sales by Segment (on a Financial Report Basis) Maintenance services and consumables, a stable source of cash, account for about 16% of total net sales. Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services
Slide 9: Overseas Sales Ratio by Segment (on a Financial Report Basis)
Overseas Sales Ratio by Segment (on a Financial Report Basis) Sodick has been developing its business globally with an overseas sales ratio of 65.8%. (million yen) North and South Japan Europe Greater China Asia America 30,000 25,000 20,000 Others Food processing machinery 15,000 Industrial machin
Slide 10: Balance Sheet
Balance Sheet Non-current assets substantially increased owing to active capital investment at home and abroad (e.g. the Kaga multifactory, Distribution Centers, Head Office Building No. 2 (R&D building), the new building for the US sales office, land for the UK sales office, the second factory of
Slide 11: Financial Indicators
Financial Indicators Changes in Interest-Bearing Debt, Net Interest-Bearing Debt, and the Debt-to-Equity Ratio Convertible bonds with (million yen) Interest-bearing Net interest-bearing Debt-to-equity 新株 stock subscription rights (times) debt debt ratio 32,958 33,713 31,543 FY15/3 FY16/3 FY17/3 FY17
Slide 12: Cash Flows
Cash Flows Cash flows from investing activities soared but were largely within the range of cash flows from operating activities, and free cash remained positive. （million yen) FY17/12 FY18/12 Major factors for increase and decrease Cash flows from operating activities 4,522 9,275 Decrease in acco
Slide 13: Capital Investment / Depreciation / R&D Expenses
Capital Investment / Depreciation / R&D Expenses Changes in capital investment / depreciation Major capital investment (million yen) Yokohama Head Office R&D building Capital 設備投資 Depreciation 減価償却費 10,000 investment Kaga Plant new logistics center 9,000 Multi-factory at Kaga Plant 8,000 7,000
Slide 14: Major New Products Released in FY18/12
Major New Products Released in FY18/12 Segment Machine tools Large Wire-cut EDM Die-sinker EDM Small Hole Nano-machining AL800P AP30L Drilling EDM Center K6HL AZ275nano Product name Aerospace, energy, automobiles, Aerospace, energy, automobiles, Sales medical equipment, electrical and Precision, ele
Slide 15: Major New Products Released in FY18/12
Major New Products Released in FY18/12 Food processing Food processing Segment Machine tool machinery machinery Metal 3D Printer Long-Life Noodle For Juwari-soba noodle LPM325 Production Line Vacuum Dough Mixer Product name Precision, electrical and Sales Noodle manufacturers (at home Noodle manufac
Slide 16: FY18/12 Topics: Multi-factory at Kaga Plant completed
FY18/12 Topics 1 Multi-factory at Kaga Plant completed On November 27, 2018, Multi-factory was completed at Kaga Plant, a major production base in Japan. At Multi-factory, we have established a flexible production system responding to changes in the business environment and market trends without lim
Slide 17: II. Figures for the Purpose of Comparison
II. Figures for the Purpose of Comparison These figures, which have not been audited, are provided only for the purpose of comparison. Figures for the purpose of comparison are the figures adjusted after we eliminated the three-month difference between the parent’s year-end and the year-ends of
Slide 18: Financial Results Highlights (Adjusted Figures)
Financial Results Highlights *Figures for the purpose of comparison (Adjusted) (million yen) Jan-Dec 2017 Jan-Dec 2018 Increase or decrease Jan-Dec 2018 Full-year Income Income Projections Actual Actual Amount Rate (revised on Nov. 13) margin margin Net sales 78,714 - 82,716 - 4,001 5.1% 80,000 Gros
Slide 19: Financial Results by Segment (Adjusted)
Financial results by segment *Figures for the purpose of comparison (Adjusted) (million yen) Jan-Dec 2017 Jan-Dec 2018 Increase or decrease FY2018 Full- year Projections (revised on Nov. 13) Actual Actual (Amount) (Rate) Machine tool ● segment 55,796 58,607 2,810 5.0% 56,000 Industrial machinery ● s
Slide 20: Overseas Sales Ratio by Segment (Adjusted)
Overseas Sales Ratio by Segment *Figures for the purpose of comparison (Adjusted) Expanding our business globally, overseas sales ratio is 65.8% (0.7 points decrease YoY) (million yen) North and South Japan Europe Greater China Asia America Other Food processing machinery Industrial machinery Mach
Slide 21: III. FY19/12 Financial Results Projections
III. FY19/12 Financial Results Projections
Slide 22: Market Environment
Market Environment Japan: We expect sustained solid demand due to the government subsidy programs and replacement demand due to facility aging. North America: Capital investment demand is expected to increase mainly in the automotive, aerospace and medical equipment industries. Europe: There i
Slide 23: FY19/12 Financial Results Projections
FY19/12 Financial Results Projections Although there is potential demand for high-precision equipment by sophisticated manufacturing for automotive-related and other industries especially in China, our largest market, both sales and income for the period are expected to be sluggish due to a slowdo
Slide 24: FY19/12 Financial Results Projections by Segment
FY19/12 Financial Results Projections by Segment (million yen) Machine tool segment In Japan, steady earnings are expected as there Fy18/12 FY19/12 Increase or decrease is a demand in replacing aging equipment. In North America, demand is expected to remain Actual Plan Amount Rate firm, mainly i
Slide 25: Projections for Capital Investment / Depreciation / R&D Expenses
Projections for Capital Investment / Depreciation / R&D Expenses For FY19/12, we have projections by item as follows: Capital investment is expected to be approx. 4,500 million yen (down 4,000 million yen YoY). • Strengthening the production capacity of precision mold and precision Capital molding
Slide 26: IV. Shareholder Return
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Slide 27: Policies for Shareholder Returns and Dividend Projections
Policies for Shareholder Returns and Dividend Projections As a dividend policy, we aim at a dividend yield on shareholders’ equity of at least 2%. For FY18/12, we are planning an annual dividend of 24 yen per share (interim dividend of 12 yen and fiscal year-end dividend of 12 yen) For FY19/12
Slide 28: V. Med-term Plan
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Slide 29: Medium-term Plan
Medium-term Plan Targeting net sales of 86,300 million yen with operating income of 9,800 million yen by FY21/12 (million yen) 工作機械 Machine tool 産業機械 Industrial 食品機械 Food processing その他 Others 営業利益 Operating segment machinery machinery income (million yen) segment segment 100,000 13,000 12,000 90,00
Slide 30: (Reference Materials)
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Slide 31: Domestic and Overseas Sites
Domestic and Overseas Sites NEW NEW Sodick America Sodick, Inc. Shanghai Sodick Miyazaki Plant Kaga Plant Corporation(San Jose) (Chicago) Software Co., Ltd. Head Office and Research and Technology Center Sodick Europe Ltd. (U.K.) Fukui Plant Q Sodick Deutschland GmbH Sodick Korea Co., Ltd. (Germany)
Slide 32: Participation in Major Exhibitions
Participation in Major Exhibitions The Company will participate in domestic and overseas exhibitions, thereby engaging in proactive marketing. Period Location Exhibition Notes Mar. 4-9 Taiwan Taipei TIMTOS (Taipei International Machine Tool Show) Apr. 15-20 China Beijing CIMT (China International
Slide 33: Disclaimer
Disclaimer This presentation material has been prepared exclusively for the purpose of providing information, the material was not created to advertise, solicit, market, etc., specific products or shares of the Company. This information included in this material is not required by the Financial Inst