Shima Seiki Mfg. Ltd. · TSE:6222
Shima Seiki Mfg — FY2018 Earnings Presentation
23 slides from Shima Seiki Mfg's earnings presentation, May 2019
Slide 1: Consolidated Results of FY 2018
Consolidated Results of FY 2018
Slide 2: Annual Results
Annual Results Both net sales and profits largely decreased Fiscal year ended Comparison with Fiscal year ended (Terms: Millions of yen) March 31, 2019 the previous year March 31, 2018 Net sales 51,352 (28.5%) 71,858 Operating income 4,638 (68.9%) 14,905 Ordinary income 4,991 (67.8%) 15,525 Net inco
Slide 3: Highlights
Highlights Operational Review [Flat knitting machines] ・Asia: Recorded weak sales due to the effect of the political situation in Bangladesh despite first increased introduction of WHOLEGARMENT flat knitting machines in China. Failed to increase sales of computerized flat knitting machines for manuf
Slide 4: Business Segment (consolidated)
Business Segment (consolidated) Weak sales in flat knitting machines excluding WHOLEGARMENT flat knitting machines Other 6.6 billion yen (13%) Consolidated net sales of Billion yen flat knitting machines 60 Glove and Sock Knitting Machines 1.5 billion yen (3%) Flat Knitting Machines Total 40 51.3 38
Slide 5: Net Sales and Operating Income By Segment for the Fiscal Year Ended March 31, 2019
Net Sales and Operating Income By Segment for the Fiscal Year Ended March 31, 2019 Comparison with Operating Comparison with Net sales previous year previous year (Terms: Millions of yen) income Flat Knitting Machines 38,806 (34.6%) 8,767 (54.9%) Design Systems 4,380 +11.3% 944 (19.0%) Glove & Sock
Slide 6: Sales by Region
Sales by Region Weak sales in Asian and the Middle Eastern markets and sales recovery in Japan Europe Asia 8.9 Japan billion yen Other areas (17%) 28.8 8.6 1.7 billion yen billion yen billion yen Middle East (56%) (17%) (4%) 3.2 billion yen (6%) Total 51.3 billion yen ( ) is the composition ratio. -
Slide 7: Sales by Region
Sales by Region (Terms: Millions of yen) Fiscal year Fiscal year Comparison with Region ended March ended March previous year 31, 2019 31, 2018 Japan 8,603 7,212 ＋19.3% Europe 8,959 9,052 (1.0%) Asia 28,810 48,516 (40.6%) Middle East 3,227 4,356 (25.9%) Other Areas (Overseas) 1,751 2,720 (35.6%) Tot
Slide 8: Developments in Quarterly Orders Received, Sales and Backlogs
Developments in Quarterly Orders Received, Sales and Backlogs (Orders received/Sales) Millions of yen (Backlog) Millions of yen 24,000 16,000 Orders received Sales 18,000 Backlogs 12,000 12,000 8,000 6,000 4,000 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 2014 FY 2015 FY 2016
Slide 9: Developments in Quarterly Results
Developments in Quarterly Results 2018/3 2019/3 (Terms: Millions of yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 17,251 18,318 16,275 20,013 16,923 11,273 12,423 10,732 Operating 3,747 4,313 3,194 3,650 3,307 1,036 1,257 (962) income Ordinary 4,181 4,702 3,516 3,125 3,670 957 1,215 (852) income Net income
Slide 10: Efforts for the Period
Efforts for the Period Participated in worldwide exhibitions ～Held personal exhibitions/seminars in various places～ ● ● ● ● Romania ● New York ● ● ● Istanbul Florence ● ● ● ● New Delhi ● Shanghai ● Dacca July 2018: Hong Kong knitwear manufacturer COBALT FASHION established CS innovation lab. ● Octob
Slide 11: Effort for the Period
Effort for the Period Constructed a plant in the consolidated subsidiary KAINAN SEIMITSU CO., LTD. Started operation in December 2018 To improve the quality and accelerate the pace of development To seek to increase the production efficiency on a group-wide (to transfer the component assembly proces
Slide 12: Forecast
Forecast First half of fiscal Comparison Fiscal year Comparison Fiscal year ended year ending with previous ending March 31, with previous March 31, 2019 (Terms: Millions of yen) March 31, 2020 year 2020 year Net sales 23,000 (18.4%) 52,300 +1.8% 51,352 Operating income 400 (90.8%) 4,000 (13.8%) 4,6
Slide 13: Sales and Operating Income Forecast by Segment for the Fiscal Year Ending March 31, 2020
Sales and Operating Income Forecast by Segment for the Fiscal Year Ending March 31, 2020 Operating Net sales Comparison Comparison with previous income with previous year year (Terms: Millions of yen) First-half Full-year First-half Full-year forecast forecast forecast forecast Flat Knitting Machine
Slide 14: Forecast Sales by Region
Forecast Sales by Region Europe 9.7 Asia billion yen Japan (18%) 8.3 Other Areas Middle East 29.6 billion yen 2.5 (16%) 2.1 billion yen billion yen (5%) billion yen (57%) (4%) Total 52.3 billion yen ( ) is the composition ratio. -13-
Slide 15: Revision of the Medium-Term Management Plan “Ever Onward 2020” (i)
Revision of the Medium-Term Management Plan “Ever Onward 2020” (i) Revised targets for the medium-term management plan Fiscal year ending Fiscal year ending (Terms: billions of yen) March 31, 2021 March 31, 2021 (Initial targets) (Revised targets) Net Sales 100.0 billion yen 65.0 billion yen Operati
Slide 16: Revision of the Medium-Term Management Plan “Ever Onward 2020” (ii)
Revision of the Medium-Term Management Plan “Ever Onward 2020” (ii) ・There are rapid changes in business environment. Conversion from mass manufacturing has occurred. ・Structural changes are favorable to us Fiscal year ending Fiscal year ending Fiscal year ended (Terms: billons of yen) March 31, 202
Slide 17: Developments in R&D Expenses and Capital Investment
Developments in R&D Expenses and Capital Investment To maintain strategic investment Fiscal year ending March 31, 2020 (Plan) Capital investment: 5.6 billion yen (including leased assets of 2.3 billion yen) Depreciation: 2.4 billion yen, R&D expenses: 3.7 billion yen Fiscal year ended March 31, 2019
Slide 18: Shareholder Returns
Shareholder Returns 1. Fiscal year ended March 31, 2019 [actual results]: Acquired 1 million treasury shares (2.73% of total issued shares) 2. Fiscal year ended March 31, 2019 [scheduled] : Year-end dividend of 25.0 yen (Annual dividend of 55.0 yen and payout ratio of 52.1%) 3. Fiscal year ending Ma
Slide 19: Topics
Topics Shipped the 10,000th WHOLEGARMENT flat knitting machine (January) 1995: Exhibited WHOLEGARMENT flat knitting machine at ITMA Milan 2007: Announced MACH2X and largely improved productivity 2015: Announced MACH2XS and equipped the movable sinker device with our products Sales volume of WHOLEGAR
Slide 20: Efforts for the Next Period: ITMA 2019 (Barcelona)
Efforts for the Next Period ITMA 2019 (Barcelona) To make an appeal to the industry by setting “Promotion of knitting in the world” as the theme Holding period: June 20-26, 2019 Place：Barcelona at Fira De Barcelona, Gran Via. Our booth：Hall8.0 B106 The largest international textile machine exhibitio
Slide 21: Sustainability
Sustainability Our concept of the manufacturing “Total Fashion System” realizes digitalization, mass customization, and sustainability. Intercommunication and close relationships among all processes of planning, manufacturing, and sales with the 3D design systems forms the core makes it possible to
Slide 22: Develop a New Field
Develop a New Field Apply the knitting technology to various fields, not just the fashion industry, to expand demand. Inlay patterns knitting technology 3D shaping (involves inlaying a weft) PET Monofilament Carbon fiber preform Sports, Interiors, Industrial Materials, Medical, Wearable, Automotive,
Slide 23: This presentation is intended to provide information about the business performance and strategy of
This presentation is intended to provide information about the business performance and strategy of Shima Seiki. It is not intended and should not be construed as an inducement to purchase or sell stock in Shima Seiki. Statements in this presentation that are not historical facts are forward-looking