Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — H1 FY2014 Earnings Presentation
16 slides from Sumitomo Heavy Industries's earnings presentation, Oct 31, 2014
Slide 1: Second Quarter Financial Summary and Projections for FY2014
1 Second Quarter Financial Summary and Projections for FY2014 President and CEO Shunsuke Betsukawa October 31, 2014
Slide 2: Financial Summary
2 Financial Summary Key points (1) Orders Unit: JPY billion ・ Increased from previous term in all segments except the industrial machinery FY2013 FY2014 Change segment. 1H 1H ・ Strong orders for injection molding machines and advanced precision Orders 306.5 365.5 59.0 machinery in the precision ma
Slide 3: Operating Income by Segment
3 Operating Income by Segment Unit: JPY billion Comparison with same term previous fiscal year FY2013 FY2014 Change 1H 1H <Machinery Components> Good performance in domestic market as well Machinery as markets in North America and Europe components 2.8 3.4 0.7 (for small-to-medium sized products).
Slide 4: Change in Operating Income
4 Change in Operating Income Unit: JPY billion Others +4.9 19.9 Impact of increased Sales sales administrative Impact of +2.8 costs, etc. Currency +1.6 exchange rate fluctuations +2.3 8.4 FY2013 FY2014 1H 1H October 31, 2014
Slide 5: Consolidated Balance Sheet
5 Consolidated Balance Sheet Unit: JPY billion March September March September Change Change 2014 2014 2014 2014 Current assets 435.0 444.7 9.8 Liabilities 393.1 391.0 (2.1) Notes and accounts Cash and deposits* 77.8 86.4 8.6 payable 124.2 129.7 5.5 Notes and accounts Advance payments receivable 182
Slide 6: Consolidated Cash Flow Statement
6 Consolidated Cash Flow Statement Unit: JPY billion FY2013 FY2014 Category Change 1H 1H Operating activities 13.9 31.9 18.1 Income before income taxes 7.6 19.7 12.1 Depreciation 8.8 8.0 (0.8) Working capital 6.5 17.0 10.5 Others (taxes etc.) (9.1) (12.8) (3.7) Investing activities (5.9) (5.1) 0.8 F
Slide 7: Performance Forecast for FY2014
7 Performance Forecast for FY2014 The FY2014 full-year forecast for income have been revised upwards with increased sales compared to previous year. The FY2014 interim dividend has been increased by JPY1 from the previous forecast, making the annual dividend amount JPY10. (Target dividend payout
Slide 8: Machinery Components
8 Machinery Components 1H of FY2014 : Both orders and sales increased as compared to previous term. Domestic market along with North America and Europe (for small-to-medium sized products) performed well. Sluggish demand condition continued for large-scale gear reducers for natural resources fields.
Slide 9: Precision Machinery
9 Precision Machinery <Plastic machinery> 1H of FY2014 : Sales increased due to favorable order trend in IT-related demand in Asia along with a backlog of orders carried forward from the previous period. Eurozone also showed signs of gradual recovery. 2H of FY2014 : IT-related demand, a key area for
Slide 10: Construction Machinery
10 Construction Machinery <Hydraulic excavators> 1H of FY2014 : Domestic demand was strong due to reconstruction demands as well as rush demands before revisions to the emission regulations. North American demand was also strong due to the recovering economy as well as new emission regulations. Chin
Slide 11: Industrial Machinery
11 Industrial Machinery 1H of FY2014 : Orders for materials handling equipment were strong, especially from the shipbuilding sector. Orders were also strong for turbines for the power generation sector. Orders for forging presses in the industrial equipment area fell. Turbines and pumps recovered to
Slide 12: Ships
12 Ships 1H of FY2014 : Received orders for three Aframax tankers in 1Q, and two in 2Q. One vessel was delivered as same as previous term, but sales increased by three vessels on a percentage-of-completion sales basis. The amount of operating deficit was reduced by increasing operations as compared
Slide 13: Environmental Facilities and Plants
13 Environmental Facilities and Plants 1H of FY2014 : Orders were strong from the domestic biomass-fueled power generation sector for CFB boiler. While overseas, numbers of inquiries were increasing in the Southeast Asian market. For water treatment related equipment, orders increased due to front-l
Slide 14: Performance Forecast for FY2014 by Segment
14 Performance Forecast for FY2014 by Segment Key Points (1) The order forecast has been revised to JPY670 billion, an increase of JPY20 billion from the previous forecast. (2) Sales forecast remains unchanged from the previous forecast. (3) The operating income figure has been revised to JPY42 bill
Slide 15: Overseas Sales
15 Overseas Sales Unit: JPY billion Overseas Sales by Regional Segment FY2014 / 1H Overseas Sales by Segment Environmental facilities and plants Unit: JPY billion Machinery components Ships Industrial (5%) machinery (6%) (15%) (7%) 342.3 Precision machinery 293.3 292.6 306.3 Construction machinery 2
Slide 16: Forward-looking statements
16 16 All forward-looking statements regarding the company’s future performance are based on information currently available to Sumitomo Heavy Industries and determined subjectively. Future performance is not guaranteed and all information related to future performance contained herein is subject to
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