Sodick Co., Ltd. · TSE:6143
Sodick — Q2 FY2019 Earnings Presentation
24 slides from Sodick's earnings presentation, Aug 16, 2019
Slide 1: 2Q FY19/12 Results Briefing
First Section of TSE 6143 2Q FY19/12 Results Briefing August 16, 2019 Sodick Co., Ltd.
Slide 2: Table of Contents
Table of Contents I. 2Q FY19/12 Financial Results Summary 3 II. FY19/12 Financial Results Projections 15 (Reference Materials) 23 2
Slide 3: I. 2Q FY19/12 Financial Results Summary
I. 2Q FY19/12 Financial Results Summary
Slide 4: Financial Results Highlights
Financial Results Highlights Net sales down 21.0% year on year, reflecting a significant setback in sales of EDMs caused by investment decisions being postponed amid the US-China trade disputes. Profit dropped significantly, reflecting lower plant utilization rate associated with lower unit sale
Slide 5: Financial Results Highlights (Quarterly)
Financial Results Highlights (Quarterly) Sales increased in the first quarter, reflecting big auto-related deals in Japan and strong sales of EDMs in China. Sales in the second quarter suffered a decrease, reflecting a setback in demand for smartphones and electronic component products, weak deman
Slide 6: Operating income margin
Ratio of Operating Income to Net Sales (Quarterly) 2Q sales totaled 13.8 billion yen, reflecting lower sales of EDMs caused by the investment decisions being postponed in the wake of the US-China trade disputes. Operating income margin was down significantly to 0.2%, reflecting lower plant utili
Slide 7: Details of Changes in Operating Income
Details of Changes in Operating Income R&D expenses, advertisement expenses and some other expenses were up, while SG&A expenses were down. Meanwhile, operating income decreased by 3,150 million yen, reflecting a significant reduction in gross margin. Gross Profit down (million yen) 3,960 5,277 Tr
Slide 8: Financial Results by Segment
Financial Results by Segment (million yen) Machine tool segment 2Q 2Q [China, Japan, Europe] Year-on-year chg. Sales dropped significantly in the second quarter, FY18/12 FY19/12 reflecting lower demand for smartphones and electronic Actual Actual (Amount) (Rate) component products along with weak de
Slide 9: Financial Results by Segment (Quarterly)
Financial Results by Segment (Quarterly) (million yen) Machine tool segment Sales increased from 1Q in North and South America. FY19/12 Increase/Decrease Sales dropped in other regions. [China] 2Q sales dropped due to investment decisions being 1Q (Jan-Mar) 2Q (Apr-Jun) postponed amid the US-China
Slide 10: Net Sales by Segment
Net Sales by Segment Machine tool segment Industrial machinery segment Food processing machinery segment Maintenance services and consumables Maintenance services and consumables Maintenance services and consumables Machine tool sales Industrial machinery sales Food processing machinery sales (milli
Slide 11: Overseas Sales Ratio by Segment
Overseas Sales Ratio by Segment Overseas sales ratio down to 60%, reflecting lower sales in China, Europe and Asia North and South (million yen) Japan Europe Greater China Asia America 16,000 14,000 12,000 Others 10,000 Food processing machinery 8,000 Industrial machinery 6,000 Machine tools 4,000
Slide 12: Balance Sheet
Balance Sheet Total assets down 3.2 billion yen year on year reflecting a decrease in trade receivables and inventories, partially offset by an increase in non-current assets related to the new sales offices built in Europe and the expansion of the Miyazaki Plant (high- precision dies and mold bus
Slide 13: Cash Flows
Cash Flows Cash flows from operating activities dropped significantly, primarily due to a decrease in pre-tax profit and trade receivables Investing activities use was reduced due to limited capital spending at home and abroad. Free cash flow was in the positive territory at 2,414 million yen (mil
Slide 14: 2Q FY19/12 Topics
2Q FY19/12 Topics 1 CIMT2019 (16th China International Machine Tool Show) Sodick participated in CIMT2019 held in Beijing, China. At our booth, we made a presentation on the processing image integrating cutting-edge machine tools with robot technology and gave a demonstration of high-speed molding w
Slide 15: II. FY19/12 Financial Results Projections
ll. FY19/12 Financial Results Projections
Slide 16: Market Environment
Market Environment Japan: While customers remain cautious about capital spending amid the US-China trade disputes, we expect sustained demand due to the government subsidy programs and replacement demand. North America: Although there is a lull in demand in the automotive industry, capital inves
Slide 17: FY19/12 Financial Results Projections
FY19/12 Financial Results Projections (comparison with initial projections) The full-year forecast has been revised downward, reflecting significant underperformance of the financial results for the first half against initial estimates and the challenging business environment expected to remain un
Slide 18: FY19/12 Financial Results Projections (Progress)
FY19/12 Financial Results Projections (Progress) The full-year forecast has been revised downward, reflecting significant underperformance of the financial results for the first half against initial estimates and the challenging business environment expected to remain unchanged over the second hal
Slide 19: FY19/12 Financial Results Projections by Segment (Progress)
FY19/12 Financial Results Projections by Segment (Progress) (million yen) FY18/12 Machine tool segment FY19/12 Full-year It has become apparent among customers Full-year that they postpone investment decisions amid Second half the US-China trade disputes. The situation 2Q Actual projection Actual
Slide 20: Key Initiatives for Future
Key Initiatives for Future 1 To enhance sales activities in every business hub Addressing China’s market shift from quantity to quality To build higher-quality marketing structure and promote further enhancement in customer support with the expansion of sales personnel and skills in response to
Slide 21: Key Initiatives for Future
Key Initiatives for Future Updating human resource management system to 3 promote effective use of manpower Implementing a comprehensive update to the personnel management system as part of the working style reform initiatives • Promotion of company management embracing diversity in terms of women
Slide 22: Shareholder Return Policy and Dividend Projections
Shareholder Return Policy and Dividend Projections Dividend policy: Aims to achieve 2% or higher dividend on equity (DOE) ratio Annual dividend is forecast to be 25 yen per share for FY19/12 (interim: 12 yen; year-end: 13 yen) (yen) 1Dividend 株当たり配当金 per share DOE 2.4% 2.5% 30 2.1% 2.1% 2.1% 2.0
Slide 23: (Reference Information) Domestic and Overseas Sites
(Reference Information) 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 NEW Sodick Europe Ltd. (U.K.) Fukui Plant Ｑ Sodick Deutschland GmbH Sodi
Slide 24: (Reference Information) Participation in Major Exhibitions
(Reference Information) Participation in Major Exhibitions The Company will participate in both domestic and international exhibitions, thereby engaging in proactive marketing Date Location Exhibition Notes One of the world’s largest machine Sep. 16-21 Germany Hanover EMO2019 tool trade shows Mach