Sumitomo Heavy Industries, Ltd. · TSE:6302

Sumitomo Heavy Industries — FY2019 Earnings Presentation

29 slides from Sumitomo Heavy Industries's earnings presentation, May 2020

Slide 4: Financial Summary: Main Points
May 2020 01 Financial Summary Unit: JPY billion ■ Main Points FY2018 FY2019 Change (1) Orders ・YoY decreases in all segments. Orders 952.2 826.2 (126.0) ・Significant decrease especially in Construction Machinery and Environmental Facilities & Plants. Net Sales 903.1 864.5 (38.6) ・The main reason is
Slide 5: Operating Profit by Segment
May 2020 01 Operating profit by Segment Unit: JPY billion  Comparison with Previous Fiscal Year FY2018 FY2019 Change ＜Machinery components＞ Machinery Profits decreased due to a decline in sales of small-to- medium sized gear reducers and precision motion control Components 11.1 5.5 (5.5) drives for
Slide 6: Analysis of Changes in Operating Profit
May 2020 01 Analysis of Changes in Operating profit Unit: JPY billion Effect of profit decreases Effect of exchange rates Selling & administrative expenses Other FY2018 FY2019 Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved. 6
Slide 7: Consolidated Balance Sheet
May 2020 01 Consolidated Balance Sheet  An increase in fixed assets through capital investments and implementation of M&A and an increase in cash and deposits led to an increase of 51.4 billion yen in interest-bearing debts. Unit: JPY billion March 2019 March 2020 Change March March Change 2019 202
Slide 8: Consolidated Cash Flow Statement
May 2020 01 Consolidated Cash Flow Statement ■Operating cash flows decreased due to a decrease in current Profit. ■Free cash flows turned negative for the first time in seven fiscal years. Unit: JPY billion Category FY2018 FY2019 Change Operating Activities 55.2 36.3 (18.9) Profit before income taxe
Slide 9: Summary of Results by Segment
May 2020 01 Summary of Results by Segment (Orders, Sales and Operating profit) Unit: JPY billion FY2017 (Apr. - Mar.) FY2018 (Apr. - Mar.) FY2019 (Apr. - Mar.) Operating Operating Operating Operating Operating Operating Orders Net Sales Profit Profit Ratio Orders Net Sales Profit Profit Ratio Orders
Slide 11: Future Outlook
May 2020 02 Future Outlook <Impact of COVID-19> ・ It is expected that orders will be generally stagnant, and in particular the Machinery Components, Precision Machinery and Construction Machinery segments that offer a short lead time after receiving orders will see significantly lower sales. ・ Our s
Slide 12: Management Policy for FY2020
May 2020 02 Management Policy for FY2020 <Until the End of the Pandemic> Priority is given to safety of employees, the maximum cooperation to meet social requirements and maintenance of our operating bases. <Efforts in a Path to Recovery of Economic Activities> ・ Enhancement of the business continui
Slide 13: Machinery Components
May 2020 01 Machinery Components FY2019: Both orders and sales decreased due to a decline in demand for small-to- medium sized gear reducers and precision motion control drives for robot articulations. In addition, Operating profit also decreased due to a decline in sales, an increase in expenses an
Slide 14: Precision Machinery
May 2020 01 Precision Machinery ＜Plastic Machinery＞ FY2019: All of orders, sales and Operating profit decreased due to sluggish demand in China for electrical and electronics- related products and reduced demand in Japan and Europe. FY2020: Early recovery in demand for electrical and electronics-rel
Slide 15: Construction Machinery
May 2020 01 Construction Machinery <Hydraulic Excavators and Road Machinery> FY2019: All of orders, sales and Operating profit decreased due to factors such as reduced demand in the ASEAN region, sluggish growth in the Chinese market, and typhoon damage causing a problem with procurement of parts. F
Slide 16: Industrial Machinery
May 2020 01 Industrial Machinery FY2019: For industrial cranes, orders remained unchanged as compared to the previous fiscal year due to reasons such as the fact that demand for products related to electricity and ports continued to be strong. However, sales of long lead items will be recorded in th
Slide 17: Ships
May 2020 01 Ships FY2019: The market for vessels continued to be stagnant. In the current fiscal year, we received orders for three new vessels as in the previous fiscal year. Although we delivered four vessels as in the previous fiscal year, sales decreased year-on-year due partially to a decrease
Slide 18: Environmental Facilities & Plants
May 2020 01 Environmental Facilities & Plants FY2019: In the energy plant business, orders decreased due to a year-on-year decrease in large- scale projects for biomass-fueled power generation plants in Japan. However, sales and Operating profit remained unchanged from the previous fiscal year becau
Slide 20: Overall Review of Medium-Term Management Plan 2019
May 2020 03 Overall Review of “Medium-Term Management Plan 2019” ・ We worked to transform into a steady growth and high profit company by strengthening overseas businesses and service activities, actively making investments, and implementing M&A deals and partnerships. ・ Efforts were made with a foc
Slide 21: Basic Concept of MTMP19
May 2020 03 Basic Concept of “MTMP19” Basic Concept Specific Developments Achieve growth globally (especially for mass produced machinery) 1. Achieve “Steady Growth” Accelerate new product development and their introduction to the marketplace Undertake investments (R&D/CAPEX/personnel) according to
Slide 22: Numerical Targets
May 2020 03 Summary of “MTMP19” Actual Actual Actual “MTMP19” Plan FY2017 FY2018 FY2019 Net sales: JPY800 billion JPY791.0 b JPY903.0 b JPY864.5 b Numerical targets FY2019 8.8% 8.3% 6.6% Operating profit Ratio: 7.5% JPY69.9 b JPY75.2 b JPY56.8 b ROIC: 7.5% or more 10.3% 10.5% 7.3% Dividend Payout Ra
Slide 23: Basic Concept 1: Growth of Overseas Sales
May 2020 04 Basic Concept 1 Growth of Overseas Sales Overseas Sales by Regional Segment Overseas Sales by Segment Unite: JPY billion Unit: JPY billion Ratio of overseas sales North America Environmental (right axis) Facilities & Plants Ships Europe Industrial Asia Machinery (Excluding China) Constru
Slide 24: Basic Concept 2: Investment (Capital Investments / R&D)
May 2020 04 Basic Concept 2 Investment (Capital Investments / R&D) ・ We actively made capital and development investments according to the Basic Concept of the Medium-Term Management Plan 2019. ・ Capital investments are made with a focus on areas with growth potential and high profitability, such as
Slide 25: Basic Concept 3: Trends in Sales of After Sales Services
May 2020 03 Basic Concept 3 Trends in Sales of After Sales Services Unit: JPY billion 1500 150 100 1000 50 500 0 FY2014 14年度 FY2015 15年度 FY2016 16年度 FY2017 17年度 FY2018 18年度 FY2019 19年度・ During the period of Medium-Term Management Plan 2019, sales of after-sales services increased as planned in the
Slide 26: Basic Concept 4: State of New Consolidated Companies
May 2020 03 Basic Concept 4 State of New Consolidated Companies Unit: JPY billion Actual FY2017 Actual FY2018 Actual FY2019 New Consolidated Segment Companies Net Net Net Orders Orders Orders Sales Sales Sales Lafert Group －－ 14.5 16.4 19.3 19.3 Machinery Components Invertek －－－－ 1.2 1.3 Precisi
Slide 27: Active Promotion of CSR
May 2020 03 Basic Concept 5 Active Promotion of CSR Actual results for the three-year period of Medium-Term Management Plan 2019 Overall ・Started the (first) CSR medium-term plan and defined materiality of the Group ・Held discussions with 20 departments and built a base for CSR to create value Produ
Slide 28: Ref. Sales by Regional Segment
May 2020 Ref. Sales by Regional Segment Unit: JPY billion Total Hydraulic Excavators FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 (April - March) (April - March) (April - March) (April - March) (April - March) (April - March) Net Sales (Sales Ratio) Net Sales (Sales Ratio) Net Sales (Sales Ratio) Net S
Slide 29: Forecasts and outlooks disclaimer
May 2020 Forecasts and outlooks concerning future results are considered by the Company to be reasonable based on information available at the time of publication. Actual results may vary from the above forecast and outlook because of a variety of factors. Copyright © Sumitomo Heavy Industries, Ltd.

Sumitomo Heavy Industries — FY2019 Earnings Presentation on 6ix

Sumitomo Heavy Industries — FY2019 Earnings Presentation

Slide 1: Financial Presentation Material for FY2019

Slide 2: Index

Slide 3: Financial Summary for FY2019

Slide 4: Financial Summary: Main Points

Slide 5: Operating Profit by Segment

Slide 6: Analysis of Changes in Operating Profit

Slide 7: Consolidated Balance Sheet

Slide 8: Consolidated Cash Flow Statement

Slide 9: Summary of Results by Segment

Slide 10: Future Outlook

Slide 11: Future Outlook

Slide 12: Management Policy for FY2020

Slide 13: Machinery Components

Slide 14: Precision Machinery

Slide 15: Construction Machinery

Slide 16: Industrial Machinery

Slide 17: Ships

Slide 18: Environmental Facilities & Plants

Slide 19: Medium-Term Management Plan

Slide 20: Overall Review of Medium-Term Management Plan 2019

Slide 21: Basic Concept of MTMP19

Slide 22: Numerical Targets

Slide 23: Basic Concept 1: Growth of Overseas Sales

Slide 24: Basic Concept 2: Investment (Capital Investments / R&D)

Slide 25: Basic Concept 3: Trends in Sales of After Sales Services

Slide 26: Basic Concept 4: State of New Consolidated Companies

Slide 27: Active Promotion of CSR

Slide 28: Ref. Sales by Regional Segment

Slide 29: Forecasts and outlooks disclaimer