Slide 1: 1Q FY2024/12 Results Briefing
Tokyo Stock Exchange Prime Market 6143 1Q FY2024/12 Results Briefing Sodick Co., Ltd. May 10, 2024
Slide 2: 1Q FY2024/12 Financial Results Summary
1Q FY2024/12 Financial Results Summary
Slide 3: Financial Results Highlights (1Q FY2024/12)
Financial Results Highlights (1Q FY2024/12) Weak growth in each segment despite implementation of structural reforms Consolidated Net Sales: 15.6 billion yen -7.4% YoY Results Operating Profit: -0.78 billion yen –% Aerospace demand continued to recover. Demand in Greater China is recovering after Ch
Slide 4: Financial Results Highlights (1Q FY2024/12)
Financial Results Highlights (1Q FY2024/12) Net Sales decreased by 9.3% quarter on quarter due to a decrease sales in machine tool, industrial machinery and food machinery segments. Despite structural reforms, including workforce optimization at overseas plants and reduction of various expenses,
Slide 5: Analysis on Reduction of Operating Loss
Analysis on Reduction of Operating Loss SG&A expenses decreased by about ¥760 million from 4Q FY2023 partly due to the effect of reduced expenses, reducing the operating loss in 1Q FY2024. (million yen) 0 Profit Decrease – Profit increase Factors (reduced expenses) 839 Factors 75 – OPOP forfor Gro
Slide 6: Trends in Net Sales and Operating Profit Margin (Quarterly)
Trends in Net Sales and Operating Profit Margin (Quarterly) Net sales decreased Machine tool sales Recovery COVID-19 fell sharply and then, Net sales due to the spread of Operating Profit Margin COVID-19 crisis Operating rates and (million yen) profit margins lowered in China 25,000 21,198 20,187 20
Slide 7: Financial Results by Segment
Financial Results by Segment FY2023 FY2023 FY2023 FY2023 FY2024 (million yen) QoQ Change 1Q 2Q 3Q 4Q 1Q Machine tool segment 12,227 11,973 11,084 11,421 11,471 0.4% Industrial machinery 2,393 2,024 1,949 2,262 1,994 -11.9% Net sales segment Food machinery segment 998 1,449 2,125 2,328 859 -63.1% Oth
Slide 8: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment ■ Machine Tool Segment Trends in Net sales (Quarterly) (million yen) 16,000 Aerospace demand was on a recovering trend in 11,471 Japan, the Unites States and Europe. 12,000 Net sales Demand for automotive, semiconductors, and 8,000 electronic components was recovering in
Slide 9: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment ■ Industrial Machinery Segment Trends in Net sales (Quarterly) (million yen) 4,000 The industrial machinery industry is still facing a difficult situation as a whole due to inventory adjustments and postponement of investment in 3,000 customer side due to slack market co
Slide 10: Financial Results by Segment: Food Machinery Segment
Financial Results by Segment ■ Food Machinery Segment Trends in Net sales (Quarterly) (million yen) 3,000 Net Sales decreased year on year as there were slow progress on projects in 1Q FY2024. 2,000 Net sales In terms of market conditions, the strong demand for noodle making machine-related equipmen
Slide 11: Financial Results by Segment: Other Segments
Financial Results by Segment ■ Other Segments Trends in Net sales (Quarterly) (million yen) 2,000 Net sales of the mold operations decreased partly due to semiconductor shortages and supply chain disruptions. 1,500 1,311 Net sales Demand for ceramics for semiconductor 1,000 manufacturing equipment m
Slide 12: Balance Sheet
Balance Sheet Total assets increased about 5 billion yen from the end of the previous year. Cash and deposits increased significantly due to transfers of time deposits from non-current assets to cash and deposits, increased borrowings, compensation for forced relocation of Suzhou Factory (China).
Slide 13: FY2024/12 Outlook
Sodick FY2024/12 Outlook
Slide 14: Trends in JMTBA Orders Volume and Sodick EDM Order Volume
Trends in JMTBA Orders Volume and Sodick EDM(Electrical Discharge Machine) Order Volume Trends in JMTBA Machine Tool Orders (amount) (0.1 billion yen) and Sodick EDM Orders (units) (units) 2,000 Record-high monthly orders in Sodick (2021/3) A fall due to the 1,500 2008 financial crisis Demand Increa
Slide 15: Trends in Sodick EDMs Order Volume by Region (Quarterly)
Trends in Sodick EDMs Order Volume by Region (Quarterly) Demand for automobile-related and aerospace-related North and Orders from automobile-related industries remained weak, Europe industries remained steady. South America but those from medical-related industries were on the recovery trend and th
Slide 16: FY2024/12 Full-year Financial Results Projections
FY2024/12 Full-year Financial Results Projections Due to high uncertainty about the sustainability of the demand recovery in the Greater China market and the future market environment, the initial full-year plan was left unchanged this time. Steady step towards the structural reforms in whole So
Slide 17: FY2024/12 Full-year Financial Results Projections (by Segment)
FY2024/12 Full-year Financial Results Projections (by Segment) Machine tools: Slow progress, but profitability is expected to improve after 2Q owing to structural reforms and cost cut. Industrial machinery: Fell short of the sales target in Japan and Greater China and its sales progress is slow.
Slide 18: Return to Shareholders
Return to Shareholders Basic Policy Dividend on equity (DOE) 2% or more (*1) and total return ratio 40% or more ■ Dividends per share 35 30 25 20 15 29 29 25 25 26 27 22 24 10 5 0 2017/12 2018/12 2019/12 2020/12 2021/12 2022/12 2023/12 2024/12 Interim 14 yen DOE 2.3 2.1 2.1 2.1 2.1 2.3 2.1 2.2 Year-
Slide 19: Topics for 1Q FY2024/12
Sodick Topics for 1Q FY2024/12
Slide 20: Business development of the food machinery segment
Business development of the food machinery segment Focus on expansion of domestic and overseas plants and development of new markets ‒ Set up a new international sales department and focus on developing new overseas customers by Current taking promotion activities mainly in East Asia, Southeast As
Slide 21: Food Machinery Segment: Future Prospects for Rice Market
Food Machinery Segment: Future Prospects for Rice Market ◆Growing demand for packaged cooked rice year after year Japanese Trends in annual production volume of packaged cooked rice (Japan) Production volume has market increased year after year. (1000 Thousand tons) 300 • Needs for household stockpi
Slide 22: Appendix
Appendix 1. Changes in Financial Results 2. Changes in Indexes 3. Changes in Financial Results by Segment 4. Numbers of EDMs Ordered and Sold 5. Overseas Sales Ratio by Segment 6. Maintenance Service Ratio 7. Composition of Segments and Key Products 8. New Products 9. Exhibition Information
Slide 23: Trends in Financial Results (Quarterly)
Trends in Financial Results (Quarterly) (million yen) 1Q 2Q 3Q 4Q 1H 2H Full year FY2022/12 YoY YoY YoY YoY YoY YoY YoY Net sales 19,604 136.9% 19,712 97.6% 20,441 105.0% 20,737 97.8% 39,317 113.9% 41,178 101.3% 80,495 107.1% Cost of sales 13,050 135.0% 13,126 99.7% 13,865 110.3% 13,629 96.9% 26,176
Slide 24: Trends in Indexes
Trends in Indexes Number of employees (Persons) 18/12 19/06 19/12 20/06 20/12 21/06 21/12 22/06 22/12 23/06 23/12 24/03 Non-consolidated 755 801 841 869 886 914 924 987 1,087 1,170 1,183 1,183 Consolidated 3,676 3,625 3,579 3,576 3,633 3,670 3,683 3,772 3,746 3,778 3,562 3,504 *Not including the tra
Slide 25: Trends in Financial Results by Segment
Trends in Financial Results by Segment 1Q 2Q 3Q 4Q 1H 2H Full year FY2022 YoY YoY YoY YoY YoY YoY YoY Net sales 14,096 135.8% 14,149 102.8% 14,318 109.3% 13,928 97.8% 28,245 117.0% 28,247 103.3% 56,492 109.7% Machine tool Operating profit 2,143 238.6% 1,795 79.5% 1,568 74.5% 1,539 80.4% 3,938 124.8%
Slide 26: Numbers of Sodick EDMs Ordered and Sold
Numbers of Sodick EDMs Ordered and Sold Number of EDMs ordered (Units) FY2022/12 FY2023/12 FY2024/12 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total North and South 81 58 56 83 278 70 63 70 74 277 65 America Europe 96 106 58 94 354 70 56 83 76 285 63 Greater 578 619 340 292 1,829 341 288 236 2
Slide 27: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment (million yen) North and South Japan Europe Greater China Asia 7,000 America 6,000 Others 5,000 Food machinery 4,000 Industrial machinery 3,000 Machine tools 2,000 1,000 0 FY2023 2023年 FY2024 2024年 FY2023 2023年 FY2024 2024年 FY2023 2023年 FY2024 2024年 FY2023 2023年 FY2024
Slide 28: Maintenance Service Ratio
Maintenance Service Ratio Breakdown of machine sales and maintenance/ services Quarterly trends in maintenance services and / consumables sales consumables (million yen) 3,500 Machine tools FY2023 1Q FY2024 1Q 3,053 3,000 3,219 Maintenance 2,500 services and 3,053 25.0% 3,219 28.1% 2,000 consumables
Slide 29: Composition of Segments and Key Products
Composition of Segments and Key Products Segment Machine tools Industrial machinery Food machinery Die-sinker EDM Wire-cut EDM Horizontal injection molding Noodle making machines machine (Noodle making production line) Small-hole Metal 3D Printer Aseptically-packaged cooked drilling EDM rice product
Slide 30: New Products Released in 1Q FY2024
New Products Released in 1Q FY2024 Machine Subscription Service Industrial Evolved V-LINE🄬 Industrial Evolved hybrid tools “Sub-Sc TRY” machinery GL_G2 Series machinery VT G Series launched Wire EDM machine is available for For precision, electronics, optics For precision connectors used in a…
Slide 31: 1Q FY2024/12 Exhibition Information (Private Show)
1Q FY2024/12 Exhibition Information (Private Show) We held private shows (in-house technical Osaka exhibitions) during this period, for the first time in eight years, at the Research and Technology Center (Yokohama), the Osaka Sales Office, and the Shizuoka Technical Center in Japan. More than 1,000
Slide 32: Notes
Notes 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. The information included in this material is not required by the Financial Instrument