Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — FY2005 Earnings Presentation
24 slides from Sumitomo Heavy Industries's earnings presentation, June 2006
Slide 1: Part 1: FY2005 Financial Summary and FY2006 Projections
June 2006 Part 1: FY2005 Financial Summary and FY2006 Projections Yukio Kinoshita Executive Vice President JUne 2006
Slide 2: Current Performance Evaluation
1-1 Current Performance Evaluation Sales Sales 551.3 551.3 billion billion yen yen higher higher sales sales for for three three straight straight year year Net Net income income 29.7 29.7 billion billion yen yen Summary higher higher earnings earnings forfor three three straight straight year year
Slide 3: Financial Summary for FY2005
1-2 Financial Summary for FY2005 Units JY billion Orders FY2004 FY2005 Change Increase in Construction Machinery, Shipbuilding Orders 560.7 603.0 42.3 Sales Increase in Mass-Produced Net sales 521.3 551.3 30.0 Machinery (esp. power transmission control, Operating income 48.8 47.5 (13) precision equi
Slide 4: Operating income by segment
1-3 Operating income by segment Units JY billion Units JY billion 48.8 47.5 50 0.4 FY2004 FY2005 Change Ship, steel Industrial 4.8 structures machinery 5.8 Construction Mass-produced 30.4 29.3 (1.1) 40 6.0 machinery machinery 8.5 Environmental 7.1 protection Environmental 4.3 facilities, plants & ot
Slide 5: Breakdown of extraordinary gain or loss
1-4 Breakdown of extraordinary gain or loss Units JY billion FY2004 FY2005 Change 0.5 0.9 0.4 gain Extraordinary Income on Sale of Investment Securities Amortization of prior service cost 2.5 - (2.5) Income on Sale of Fixed Assets 1.6 - (1.6) Sub-total 4.6 0.9 (3.7) Loss on breach of the Antitrust L
Slide 6: Consolidated Balance Sheets
1-5 Consolidated Balance Sheets Units JY billion Increase or End of FY2005 End of FY2006 End of FY2005 End of FY2006 Increase or Decrease Decrease Current Assets 316.2 317.8 1.6 Liabilities 428.8 407.7 (21.0) Cash and deposit 49.6 43.9 (5.7) Trade Payable 134.4 142.8 8.3 Advance Payments Account rec
Slide 7: Consolidated Statements of Cash Flow
1-6 Consolidated Statements of Cash Flow Units JY billion Category FY2004 FY2005 Change Cash Flows from Operating Activities 45.5 50.0 4.6 Working Capital (0.9) 7.9 8.9 Operating Revenue before interest 53.4 53.9 0.5 payment Other (7.0) (11.8) (4.8) Cash Flows from Investing Activities (6.1) (7.0) (
Slide 8: Change in Interest-Bearing Debt
1-7 Change in Interest-Bearing Debt Unit: billion yen 294.5 273.5 254.4 Interest-bearing debt 225.6 215.8 (Net interest-bearing debt) 169.2 157.4 125.5 119.6 81.6 67.8 Free cash flow 39.4 43.0 35.5 28.4 FY2001 FY2002 FY2003 FY2004 FY2005 JUne 2006
Slide 9: FY2006 & 2007 Operating Result Forecast
1-8 FY2006 & 2007 Operating Result Forecast Unit: billion yen First Half of First Half of FY2005 FY2006 FY2007 FY2005 FY2006 Actual Forecast Plan Actual Forecast Orders received 282.4 290.0 603.0 600.0 Net Sales 245.9 260.0 551.3 570.0 600.0 Operating Income 18.5 19.5 47.5 53.0 60.0 Operating Income
Slide 10: Forecast of Net Sales and Operating Income by Segment
1-9 FY2005 Forecast of Net Sales and Operating Income by Segment Unit: billion yen First Half of First Half of Increase FY2005 FY2006 Increase FY2005 FY2006 and and (Actual) (Forecast) Decrease (Actual) (Forecast) Decrease Net Sales 103.6 108.0 4.4 218.8 227.0 8.2 Mass-Produced Operating Income 13.1
Slide 11: FY2006 & 2007 Forecast by Segment
1-10 FY2006 & 2007 Forecast by Segment Sales Operating income 570.0 600.0 Billion yen 551.3 Construction 60.0 Construction machinery machinery Billion yen 53.0 140.0 156.0 12.0 126.4 Industrial 47.5 10.0 Industrial machinery machinery 56.1 64.0 67.0 Ship, steel structures & 8.5 6.0 6.5 Ship, steel s
Slide 12: JUne 2006
J Une 2006 > Sumitomo Heavy Industries. Ltd.
Slide 13: Part 2: Management Strategy - Progress of Medium-Term Management Plan
June 2006 Part 2: Management Strategy … Progress of Medium-Term Management Plan Yoshio Hinoh, President and CEO JUne 2006
Slide 14: Position and its Meaning in Fiscal Year 2006
2-1 Position and its Meaning in Fiscal Year 2006 From bottom line management to top line growth 2002-2004 2002-2004 2005-2007 2005-2007 1999-2001 1999-2001 Leap towards Restructuring Restructuring plan plan 04 04 Leap Leap to to Excellence Excellence 07 07 becoming a globally Major reforms Value lin
Slide 15: Medium-Term Targets: Leap to Excellence 07 Review
2-2 Mid-term Management Plan “Leap to Excellence 07” Fiscal Year 2005 “Leap to Excellence 07” Review and Fiscal 2005 Results To To break break the the mould mould and and become become [a[a company company that that systematically systematically creates creates knowledge], knowledge], Medium-Term Me
Slide 16: Performance Transition
2-3 Performance Transition Operating income reached a level of 40 billion yen, transitioning towards the growth and expansion phase Billion yen Sales and Interest-bearing debt Operating income & ROIC 700 Top line Growth Billion yen Operating income Top line 80 Growth 600 551.3 600 billion yen Land s
Slide 17: Leap to Excellence 07 Fiscal Year 2005 Measures and Future Direction
2-4 “Leap to Excellence 07” Fiscal Year 2005 Measures and Future Direction Building a footing for growth and expansion jumps from 2005 Fiscal FiscalYear Year2005 2005Measures Measures Future Future Direction Direction Driving Driving reinforcement reinforcement of of [advanced [advanced products] pr
Slide 18: Synergy Model - One-SHI
2-5 Synergy Model - One-SHI Business link growth base has been established Growth potential IT Medical LCDs Digital Bio Physics Environment Material Vehicles Semi Consumer and Transportation Energy processing conductors electronics chemistry Society and Market value chain Living Service Systems prod
Slide 19: ROIC Portfolio and Growth Direction
2-6 ROIC Portfolio and Growth Direction Strategy Segment Business Group What is the direction of the growth strategy? Growth and expansion focused Growth Business investment Power Group zone transmission Resource focused distribution control & New component development High Components Core self-manu
Slide 20: Core products: Topics
2-7 Core products: Topics Gear motor Injection molding machines Reinforcement Reinforcement of of the the compact compact Implementation Implementation ofof commercialization commercialization equipment equipment line-up line-up strategies strategies in in line line with with the the market market p
Slide 21: Target for MCD business unit (PTC&Mechatronics)
2-8 Target for MCD business unit (PTC&Mechatronics) Strategic issues Be the leader in the actuator market Strengthen product competitiveness within the Group and achieve a vertically integrated value chain Actuator: Components to move and work machinery by gaining energy from various sources Actuato
Slide 22: Core products: Topics
2-9 Core products: Topics Next-generation Next-generation hydraulic hydraulic excavator excavator Small Small cyclotron cyclotron for for PET PET AA Machine Machine that that meets meets next next exhaust exhaust emissions emissions Product Product launch launch of of small-scale small-scale cyclotr
Slide 23: Numerical Targets, Measures and Focus for Fiscal Year 2006
2-10 Numerical Targets, Measures and Focus for Fiscal Year 2006 Numerical Numerical Targets Sales Sales 570 570 billion billion yen yen ROIC ROIC after after tax tax 9.7% 9.7% /EBITDA /EBITDA 1.9 1.9 /E /E 0.6 0.6 Targets Operating Operating income income 53 53 billion billion yen yen Net Net income
Slide 24: Forward-looking projections notice
The projections, estimates and other information concerning future operating results are forecasts the Company has evaluated to be reasonable based on information available to the Company. Accordingly, actual operating results might vary from the projections and estimates described in this report as
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