Shima Seiki Mfg. Ltd. · TSE:6222
Shima Seiki Mfg — FY2018 Earnings Presentation
23 slides from Shima Seiki Mfg's earnings presentation, May 28, 2018
Slide 1: Annual Results and Forecast
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Slide 2: Company Profile
Company Profile Company Name Shima Seiki Mfg., Ltd. (Stock code: 6222) President Mitsuhiro Shima Main Business Manufacture and sale of computerized flat knitting machines, design systems, and glove and sock knitting machines Established February 4, 1962 Capital JPY 14,859.8 million Headquarters Waka
Slide 3: Key Strengths
Key Strengths Responds to user needs with diverse product specifications We have a wide variety of computerized flat knitting machines, such as the SSR and SVR, that feature superior production efficiency and operability. For the advanced models with superb innovative features and creativity, th
Slide 4: Business Segments
Business Segments Terms: Japanese Yen Sharp sales growth in the flat knitting machine segment Computerized Flat Knitting Machines Design Systems 3.9 billion yen (5%) 59.3 billion Total yen（83％） 71.8 billion yen Billion yen Comparison with 600 60.0 previous year Other 118％ 6.1 billion yen(9%) 500 50.
Slide 5: Line up of Flat Knitting Machines
Line up of Flat Knitting Machines MACH2XS WHOLEGARMENT flat knitting machine • Features four needle beds with our original SlideNeedle capable of knitting an entire garment in three dimensions in one entire piece. • Variety of mini-types for small fashion items are also available. SIR and SRY • SIR:
Slide 6: Annual Results
Annual Results Fiscal year Fiscal year ended Comparison with ended March (Terms: Millions of yen) March 31, 2018 previous year 31, 2017 Net sales 71,858 +15.1% 62,432 Operating income 14,905 +32.4% 11,262 Ordinary income 15,525 +54.6% 10,043 Net income attributable to owners of the parent 11,279 +56
Slide 7: Highlights
Highlights Operational Review [Flat knitting machines] ～Strong sales mainly in Asian markets～ ・Bangladesh/ASEAN: Increased sales of the SSR and SVR computerized flat knitting machines with high knitting efficiency ・China: Recorded accelerated introduction of the MACH2XS Wholegarment knitting machine
Slide 8: Graph for sales, operating income, and net income
Graph for sales, operating income, and net income Sales (Millions of yen) (Millions of yen) Operating income 80,000 76,000 20,000 71,858 Net income 70,000 62,432 16,000 14,905 60,000 15,000 48,354 49,582 50,000 11,500 11,262 11,279 40,000 10,000 30,000 7,198 5,745 5,781 20,000 5,000 3,645 3,271 10,0
Slide 9: Sales by Region
Sales by Region Sharp sales growth because of favorable Asian markets Terms: Japanese Yen Europe Asia 9.0 billion Japan Other Areas Yen(13%) Middle East 48.5 billion 7.2 billion 2.7 billion Yen(68%) Yen(10%) Yen(4%) 4.3billion Yen(6%) Total 71.8 billion yen Total：71.8 billion yen () is the compositi
Slide 10: Sales by Region
Sales by Region Fiscal year Fiscal year Comparison ended March ended March with previous (Terms: Millions of yen) 31, 2018 31, 2017 year 7,212 7,743 Ｊapan (6.9%) （10%） （12%） 9,052 7,265 Europe +24.6% （13%） （12%） 48,516 41,890 Asia +15.8% （68%） （67%） 4,356 3,136 Middle East +38.9% （6%） （5%） 2,720 2,3
Slide 11: Sales and Operating Income by Segment for the Fiscal Year Ending March 31, 2018
Sales and Operating Income by Segment for the Fiscal Year Ending March 31, 2018 Comparison with Operating Comparison with Net sales previous year previous year (Terms: Millions of yen) income Computerized Flat Knitting 59,369 +17.8% 19,423 +28.9% Machines Design Systems 3,936 (2.1%) 1,165 +16.0% Glo
Slide 12: Efforts for the Period (i)
Efforts for the Period (i) Participated in worldwide exhibitions ～Held person exhibitions/seminars in various places～ ● ISPO MUNICH 2018 (Germany) ● ● Munich PREMIERE VISION NEW YORK 2018 ● ● Osaka Sewing Machine Show (United States) ● New York ● Milan ● Istanbul SHIMA CROSSTEX (Hong Kong) ミ ● ● ラ H
Slide 13: Efforts for the Period (ii)
Efforts for the Period (ii) 55th anniversary commemorative events (November 16–17, 2017) ～Invited domestic and overseas guests and promoted advanced technologies～ ● Introduced innovative production using the SDS-ONE APEX3 and Wholegarment as a solution to environmental, social, and economic problems
Slide 14: Forecast
Forecast 「Ever Onward 2020」 Fiscal year Fiscal year Comparion with ended March 31, previous year ended March 31, (Terms: Millions of yen) 2019 2018 Net sales 76,000 +5.8% 71,858 Operating income 16,000 +7.3% 14,905 Ordinary income 16,000 +3.1% 15,525 Net income attributable to owners of the parent 1
Slide 15: Sales and Operating Income Forecast by Segment for the Fiscal Year Ending March 31, 2019
Sales and Operating Income Forecast by Segment for the Fiscal Year Ending March 31, 2019 Driving force in the flat knitting machine segment Operating Net Sales Comparison with Income Comparison with previous year previous year (Terms: Millions of yen) Full-year forecast Full-year forecast Computeriz
Slide 16: Forecast Sales by Region
Forecast Sales by Region Active proposals in regions other than Asian markets Terms: Japanese Yen Europe 9.5 billion Asia yen（13%） Middle Other Areas East Japan 5.9 billion 2.9 billion yen（8%） 49.2 billon 8.4 billion yen（4%） yen（65%） yen（11%） Total 76.0 billion yen () is the sales composition ratio.
Slide 17: Medium-Term Management Plan Ever Onward 2020
Medium-Term Management Plan「Ever Onward 2020」 Priority measures Four priority measures as our growth strategy are outlined below. We will promote the selection and concentration of our management resources in these areas as we work to enhance corporate value. i) Strengthening the flat knitting busin
Slide 18: WHOLEGARMENT
WHOLEGARMENT® A type of knit that is easy on the wearer and the environment (Energy saving, resource saving) 1. Easy on the wearer Light, attractive silhouettes with no feeling of stiffness 2. Easy on the environment Reduces cut loss and limits contamination of the atmosphere Benefits of knit manufa
Slide 19: WHOLEGARMENT and APEX3 ~ Revolution in Knit Production and Distribution
WHOLEGARMENT and APEX3 ~ Revolution in Knit Production and Distribution WHOLEGARMENT is not just knitwear without seams. It is a completely new category of knitwear based on a rethink of all stages of the knit supply chain from planning and design, production, distribution, marketing and retail sale
Slide 20: Develop a new field
Develop a new field The technology for WHOLEGARMENT is applied to various fields, not just the fashion industry. In addition, Shima Seiki's original proposals include both flat knitting and cutting technologies. 3D Shaping Inlay patterns limit typical stretch characteristics of knitwear Sports, Medi
Slide 21: Capital investment / R&D expenses
Capital investment / R&D expenses FY 2017(2018/3) Capital investment: JPY 3.9 billion Depreciation: JPY 2.1billion R&D expenses: JPY 2.7billion FY 2018(2019/3) Capital investment: JPY 6.8 billion Depreciation: JPY 2.3 billion R&D expenses: JPY 3.2 billion （Billions of yen） Capital investment R&D exp
Slide 22: Dividend
Dividend Dividends for the fiscal year ended March 2018 [scheduled]: Year-end dividend of 35.0 yen Dividends for the fiscal year ending March 2019 [plan]: Interim dividend of 35.0 yen (up 10 yen from the previous fiscal year) Year-end dividend of 45.0 yen (up 10 yen from the previous fiscal year) 80
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