Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — Q2 FY2009 Earnings Presentation
23 slides from Sumitomo Heavy Industries's earnings presentation, 2009
Slide 1: Part 1: Second Quarter Fiscal Summary and Projections for FY2009
Part 1: Second Quarter Fiscal Summary and Projections for FY2009 Sumitomo Heavy Industries, Ltd.
Slide 2: FY2009 Second Quarter Performance Summary
1-1 FY2009 Second Quarter Performance Summary Unit: JPY billion ■ Points (1) Orders received 2009 / 1H 2008 / 1H Change ・ Significant reduction in comparison with the same period of the previous year ・ Mass-produced machinery reached the Orders received 179.7 422.5 (242.8) lowest point during the se
Slide 3: Quarterly Transition of Orders Received and Sales
1-2 Quarterly Transition of Orders Received and Sales Unit: JPY billion Orders received Sales The amount of orders received hit bottom during the Sales hit bottom from the first to the fourth quarter of FY2008 and has since been in a second quarter of FY2009. recovering trend; however, figures conti
Slide 4: Operating Income by Segment
1-3 Operating Income by Segment Unit: JPY billion ■ Mass-produced machinery The performance for the half-year period was in the FY2009 / 1H FY2008 / 1H Change red; however, recovery was made in the second quarter, helped in part by the impact of a reduction in fixed costs and expenses. Reduction gea
Slide 5: Quarterly Transition of Operating Income
1-4 Quarterly Transition of Operating Income The amount of orders received hit bottom during the first quarter of FY2009 and has since been in a recovery trend; however, figures continue to hover at low levels. Unit: JPY billion 20.0 18.8 15.5 4.1 15.0 3.7 11.6 3.1 10.9 10.0 2.4 1.3 5.1 3.4 Construc
Slide 6: Operating Income Change Analysis (FY2008 1H to FY2009 1H)
1-5 Operating Income Change Analysis (FY2008 / 1H to FY2009 / 1H) 34.4 Unit: JPY billion Sales administrative costs, etc. +3.5 Impact of reduction in income Impact of currency (19.2) exchange fluctuations 8.2 (2.9) Deterioration of cost rate, etc. (7.5) FY2008 / 1H FY2009 / 1H
Slide 7: Consolidated Balance Sheet
1-6 Consolidated Balance Sheet Unit: JPY billion September March Change September March Change FY2009 FY2009 FY2009 FY2009 Current assets 323.6 380.3 (56.7) Liabilities 357.4 418.7 (61.3) Cash and deposits 42.9 44.7 (1.8) Notes and accounts payable 96.5 136.1 (39.6) Notes and accounts receivable 116
Slide 8: Consolidated Cash Flow Statement
1-7 Consolidated Cash Flow Statement Unit: JPY billion Category FY2009 / 1H FY2008 / 1H Change Operating activities 23.2 28.3 (5.1) Operating income before 17.2 42.2 (25.4) interest payments Working capital 7.3 3.2 4.1 Other (1.3) (17.1) 16.2 Investing activities (9.3) (14.0) 4.7 Free cash flow 13.9
Slide 9: Performance Forecasts for FY2009 by Segment
1-8 Performance Forecasts for FY2009 by Segment ■ Points: (1) Amount of orders hit bottom during 2H of FY2008. This trend leveled off during 1H of FY2009 and recovery started towards 2H. (2) Sales hit bottom during 1H of FY2009. Recovery started towards 2H. (3) Improvement of revenue for mass-produc
Slide 10: Performance Forecast for FY2009
1-9 Performance Forecast for FY2009 ■ Points: (1) Recovery projected for orders received in 2H. (2) Projected operating income for the fiscal year is favorable due to an improved operating income for 1H. (3) Dividends for the fiscal period expected to be JPY3 due to a favorable forecast net income f
Slide 11: Part 2: Management Strategy
Part 2: Management Strategy
Slide 12: Semi-annual Transitions for Orders Received and Sales
2-1 Semi-annual Transitions for Amount of Orders Received and Sales Unit: JPY billion Amount of orders received Sales The amount of orders received hit bottom during the The order-receiving status will reflect on fourth quarter of FY2008 and has since been showing a the sales, which will gradually r
Slide 13: Order-Receiving Environment for FY2009 by Segment
2-2 Order-Receiving Environment for FY2009 by Segment ■ Overall level remains low for mass-produced machinery, although a steady recovery is shown. ■ Heavy machinery continues to experience a severe order-receiving environment, due in part to the delays of major projects. Unit: JPY billion Amount of
Slide 14: Mass-produced Machinery
2-3 Mass-produced Machinery Unit: JPY billion Power transmission equipment: Orders received FY2009 / 1H: Transitioning with an upward trend since June. Some improving trends have been seen with medium-size products. Favorable 150.0 132.4 performance continues with Seisa Gear, Ltd. 41.2 92.8 FY2009 /
Slide 15: Environmental Protection Facilities, Plants and Others
2-4 Environmental Protection Facilities, Plants and Others Orders received Unit: JPY billion Energy plants: 100.0 FY2009 / 1H: Sluggish overall, although an order has 60.0 been received in Japan for an industrial power generating 4.6 boiler. 50.0 41.0 IT, services, etc. 29.0 3.6 24.2 Environmental F
Slide 16: Ship, Steel Structures and Other Specialized Equipment
2-5 Ship, Steel Structures and Other Specialized Equipment Ship: Orders received Unit: JPY billion 100.0 FY2009 / 1H: Ship owners continue to stand by waiting for changes, which resulted in zero for the number of orders received 70.5 during the first half of the fiscal year. In terms of sales, five
Slide 17: Industrial Machinery
2-6 Industrial Machinery Forging presses and steel manufacturing equipment: Unit: JPY billion FY2009 / 1H: Delays occurred with projects scheduled for the first half of 100.0 Orders received the fiscal year, resulting in a significant drop in the amount of orders received from planned figures. Sales
Slide 18: Construction Machinery
2-7 Construction Machinery Excavators and road construction machinery: 150.0 Orders received FY2009 / 1H: Except for China, demand dropped significantly 97.5 in comparison with the same period of the previous year. 100.0 34.6 The manufacturing plant in Tangshan has been launched 53.4 41.3 46.6 Crane
Slide 19: Overseas Sales
2-8 Overseas Sales Unit: JPY billion Unit: JPY billion Transition of overseas sales by regional segment Overseas sales for FY2009 / 1H by segment 400.0 355.7 Mass-produced Construction 340.8 machinery machinery 37.6 305.1 36.4 302.1 33.6 20.1 38.2 300.0 26.5 Environmental (26%) (30%) 28.7 33.2 34.6
Slide 20: Manufacturing Plant in Full Operation at Tangshan, China
2-9 Manufacturing Plant in Full Operation at Tangshan, China Sumitomo Heavy Industries (Tangshan) Ltd: Manufacturer of large gear reducer Sumitomo Construction Machinery (Tangshan) Co., Ltd: Manufacturer of hydraulic excavators ・The first large gear reducer was completed and shipped on February 16,
Slide 21: Strategies for Capturing Growing Markets Through Technical Innovations
2-10 Strategies for Capturing Growing Markets Through Technical Innovations Heavy machinery Mass-produced machinery Precision equipment Medical and pharmaceutical Global environment and energy Renewable energy Water Solar cells, hybrid and Total systems resources electric cars Laser annealing Proton
Slide 22: Management Policies
2-11 Management Policies 9 Aim Aim for for development development of of aa healthy healthy business business by by observing observing managerial managerial and and financial financial discipline, discipline, as as well well as as by by pursuing pursuing the the establishment establishment of of aa
Slide 23: Statements regarding forecasts and projections of future business performance
Statements regarding forecasts and projections of future business performance are considered to be reasonable by management based on information available at the time. Actual results may differ from the forecasts and projections contained in this document due to changes in a variety of factors.
Sumitomo Heavy Industries — Q2 FY2009 Earnings Presentation on 6ix