Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — H1 FY2006 Earnings Presentation
18 slides from Sumitomo Heavy Industries's earnings presentation, November 2006
Slide 1: Part 1: FY2006 Interim Financial Summary and FY2006 Projections
November, 2006 Part 1: FY2006 Interim Financial Summary and FY2006 Projections Yukio Kinoshita Executive Vice President November 2006
Slide 2: Medium-Term Performance Evaluation
1-1 Medium-Term Performance Evaluation •Targets •Targets for for the the three-year three-year Medium-Term Medium-Term Management Management Plan, Plan, “Leap “Leap to to Excellence Excellence 07,” 07,” are are expected expected toto be be met met one one year year ahead ahead ofof schedule schedule
Slide 3: Financial Summary for the 1st half of FY2006
1-2 Financial Summary for the 1st half of FY2006 Units: JPY billion 1st half of 1st half of Change FY2006 FY2005 Orders received Increase in all four segments, with Orders received 322.4 282.4 40.0 the exception of Ship segment Sales 273.4 245.9 27.5 Sales Increased sales in Mass-Produced Operating
Slide 4: Operating Income by Segment
1-3 Operating Income by Segment Units: JPY billion Mass-produced machinery 1st half of 1st half of Change FY2006 FY2005 Growth here, and especially in power transmission control, helped cover the Mass-produced decrease in plastic injection machine. machinery 14.0 13.7 0.2 Environmental protection fa
Slide 5: Balance Sheets
1-4 Balance Sheets Units: JPY billion September March September March Change Change FY2006 FY2006 FY2006 FY2006 Current Assets 303.0 317.8 (14.8) Liabilities 379.7 407.7 (28.0) Cash and Deposits Notes and Accounts 33.8 43.9 (10.1) Payable 136.7 142.8 (6.0) Notes and Accounts Advance Payments 43.3 32
Slide 6: Statements of Cash Flow
1-5 Statements of Cash Flow Units: JPY billion Category 1st half of 1st half of Change FY2006 FY2005 Cash Flows from Operating Activities 23.4 25.6 (2.2) Working Capital 9.9 13.0 (3.1) Operating Income Before Interest Payment 31.0 21.8 9.2 Other (17.5) (9.1) (8.4) Cash Flows from Investing Activitie
Slide 7: Change in Interest-Bearing Debt
1-6 Change in Interest-Bearing Debt Units: JPY billion 273.5 Interest-Bearing Debt 225.6 215.8 (Net Interest-Bearing Debt) 169.2 157.4 125.5 119.6 95.0 81.6 67.8 61.2 Free Cash Flow 43.0 39.4 28.4 20.9 FY2002 FY2003 FY2004 FY2005 September, FY2006 November 2006
Slide 8: FY2006 Forecast of Operating Results
1-7 FY2006 Forecast of Operating Results Units: JPY billion 1st Half of 1st Half of FY2006 FY2005 FY2006 FY2005 Forecast Actual Actual Actual Orders Received 322.4 282.4 660.0 603.0 Sales 273.4 245.9 595.0 551.3 Operating Income 26.8 18.5 60.0 47.5 Operating Income Ratio 9.8% 7.5% 10.1% 8.6% Ordinar
Slide 9: FY2006 Forecast of Sales and Operating Income by Segment
1-8 FY2006 Forecast of Sales and Operating Income by Segment Unit: JPY billion 1st half of 1st half of FY2006 FY2005 FY2006 FY2005 Change Forecast Actual Change Actual Actual Sales 107.4 104.5 2.8 225.0 221.0 4.0 Mass-Produced Machinery Operating Income 14.0 13.7 0.2 31.0 30.0 1.0 Operating Income R
Slide 10: FY2007 Plan and Changes in Sales and Operating Income by Segment
1-9 FY2007 Plan and Changes in Sales and Operating Income by Segment Sales JPY billion 630.0 FY2007 Plan Unit: JPY billion 551.3 595.0 162.0 Construction Machinery 126.4 154.0 Sales 630.0 Industrial Machinery 56.1 69.0 75.0 Ship, Steel Structures and 65.9 68.0 65.0 Operating 70.0 (11.1%) Other Speci
Slide 11: Part 2: Management Strategy…Progress of Medium-Term Management Plan
Part 2: Management Strategy …Progress of Medium-Term Management Plan Yoshio Hinoh, President and CEO November 2006
Slide 12: Position and its Meaning in FY2006
2-1 Position and its Meaning in FY 2006 From a period of conversion to “development and expansion of top-line growth.” 2002-2004 2002-2004 2005-2007 2005-2007 1999-2001 1999-2001 Restructuring Restructuring Leap Leap to to plan plan 04 04 Excellence Excellence 007 7 Leap towards becoming Major Refor
Slide 13: Performance Transition
2-2 Performance Transition The goals of the medium-term plan were achieved one year ahead of schedule, and target values for operating income in FY2007 were revised upward by 70 billion yen Sales and Interest-Bearing Debt Operating Income and ROIC 700 Billion yen 630.0 billion yen 650 Operating Inco
Slide 14: FY2007 Revised Plan
2-3 FY2007 Revised Plan Billion Yen Billion Yen 244 630 225 595 221 551.3 162 Plan 154 Sales Plan Sales Forecast Forecast 84 65 126.4 79 75 82.1 68 69 65.9 56.1 Mass- Produced Environ- Ship, Steel Industrial Construction Total Machinery mental Structure Machinery Machinery Billion Yen Billion Yen In
Slide 15: Mass-Produced Machinery
2-4 Unit: billion yen 2006 forecast 2007 plan Segment Market Strategy Sales Operating Income Sales Operating Income •Sales expansion to China and Europe. Power •Improve each area’s price competi Mass-Produced Machinery Transmission 91.0 -tiveness. •Enhance Motion Control Device 96.0 & Control busine
Slide 16: Core products: Topics
2-5 Core products: Topics Industrial Machinery (Shin Nippon Machinery) Construction Machinery (Excavator) Global Global expansion expansion of of the the small-scale small-scale steam steam turbine turbine sector sector Launch Launch of of the the superior superior LEGEST LEGEST Increased Increased
Slide 17: Core products: Topics
2-6 Core products: Topics Environmental Protection Facilities, Plants and Others Mass-Produced Machinery (Energy plant) (Quantum equipment) Aiming Aiming to to be be the the Asian Asian leader leader in in CFB boilers CFB boilers that that Launch Launch of of small-scale small-scale cyclotron cyclot
Slide 18: Next Medium-Term Plan
2-7 Next Medium-Term Plan Significant steps to the next medium-term plan Sales (Billion yen) Operating Income (Billion yen) 630.0 595.0 Growth and expansion of 551.3 top line growth Global expansion High-quality products M&A 70.0 60.0 47.5 FY2005 FY2006 FY2007 FY2010 Actual Forecast Target Medium-te
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