Torishima Pump Mfg.co., Ltd. · TSE:6363
Torishima Pump Mfg.co — FY2014 Earnings Presentation
28 slides from Torishima Pump Mfg.co's earnings presentation, May 13, 2015
Slide 1: Consolidated Financial Results for FY2014
Consolidated Financial Results for FY2014 (April 1st 2014 ~ March 31st 2015) < May 13 2015 > TORISHIMA PUMP MFG.CO.,LTD. Securities Code : 6363 www.torishima.co.jp/en 株式会社 酉島製作所
Slide 2: FY2014 Financial Results
FY2014 Financial Results ● Sales, Operating income, Ordinary income and Net income achieved the target as announced. ● Orders received was a little over 10% below the plan. Yen in Billion vs. Previous FY Orders received 42.8 （▲18.9％） Sales 46.5 （ ＋1.1％） Operating income 0.4 （ ＋1.3 ） Ordinary
Slide 3: FY2014 Consolidated Financial Results
FY2014 Consolidated Financial Results ● Orders received decreased primarily due to strategically-planned orders received(“Strategic Orders Received”) that prioritizes profit rate and quantitative restriction on orders. However, we completed standardization of products and have already resumed aggres
Slide 4: FY2014 Financial Results (by non-consolidated, subsidiaries)
FY2014 Financial Results （by non-consolidated・subsidiaries） ②Non-consolidated Yen in billion ③Subsidiaries Yen in billion Increase Increase FY2013 FY2014 FY2013 FY2014 Decrease Decrease Sales 35.5 36.7 ＋1.2 10.5 9.8 ▲0.7 Gross operating ＋0.8 4.3 5.1 4.0 4.1 +0.1 income （12.2%） （14.0%） （＋1.8%） （38.3%
Slide 5: Factor Analysis of Increase and Decrease (Consolidated)
Factor Analysis of Increase and Decrease (Consolidated) （Yen in million） Decrease in SG&A ＋400 ＋504 FY2013 Improvement of Gross profit margin （46 billion yen×1.7%) FY2014 ＋1,345 Operating income ▲945 ＋740 Effect by Increase in increased income Operating （0.5billion yen×19.8%) income ＋101 株式会社 酉島製作所
Slide 6: Factor Analysis of Increase and Decrease (Non-consolidated)
Factor Analysis of Increase and Decrease (Non-consolidated) （Yen in million） FY2013 FY2014 （３） Decrease in ▲924 SG&A （２）Improvement of Operating income Gross profit margin （35.5 billion yen×1.8％） ▲2,395 ＋688 Increase in （１）Increase in Sales Operating （1.2 billion yen×14.0％） income ＋624 ＋1,472 ＋160 株
Slide 7: Improvement plan for non-consolidated operation
FY2014 Results Improvement plan for non-consolidated operation ● Overall achieved as planned announced in November 2014. ● “Increase in sales” and “Decrease in SG&A” were above the plan, “Improvement of gross profit margin” was slightly below the plan. Outlook FY2014 as of Nov. 2014 Result Achieve-
Slide 8: Improvement of gross profit margin (non-consolidated)
FY2014 Results Improvement of gross profit margin(non-consolidated) ●Provision decreased 450 million yen compared to the previous year, contributing to improvement of the gross profit margin. ●Got out of the worst period in adding provision that is a negative impact to profit margin. Provision for p
Slide 9: Decrease in SG&A expense (non-consolidated)
FY2014 Results Decrease in SG&A expense (non-consolidated) ●IT system related costs significantly decreased as planned. ●Other SG&A (labor cost etc.) also largely decreased. 634 million yen IT system introduction costs 600 Depreciation on IT system 400 501 250 254 200 77 82 133 173 172 0 FY2013 Outl
Slide 10: Medium-term management plan (consolidated)
Medium-term management plan (consolidated) billion yen FY2014 FY2015 FY2016 Result Plan Plan ※ ※ Amended ※ Amended Plan Result Plan Plan plan plan Orders 49.5 42.8 55.0 50.0 60.0 No change received Sales 49.0 46.5 50.0 43.0 55.0 50.0 Operating 0.5 0.4 1.5 1.0 2.5 No change income (1.0%) (0.9%) (3.0%
Slide 11: FY2015 Outlook (consolidated)
FY2015 Outlook (consolidated) ● Expect to increase profits despite the decrease in sales y-o-y. ● Profits outlook is downwardly revised in accordance with largely decreased sales compared to the initial plan. billion yen FY2014 FY2015 Increase- Result Outlook Decrease Sales 46.5 43.0 ▲3.5 Gross prof
Slide 12: FY2015 Outlook (Non-consolidated and subsidiaries)
FY2015 Outlook (Non-consolidated and subsidiaries) ● Non-consolidated->Expect to improve gross profit margin and to decrease sales. SG&A can be the same level as the previous year. ● Subsidiaries -> Continually expect high margin operations. Non-consolidated Billion yen Subsidiaries Billion yen FY20
Slide 13: Decrease in order backlog (non-consolidated)
FY2015 Outlook Decrease in order backlog (decrease in sales) (Non-consolidated) Billion yen Orders from public sectors Orders from private sectors Orders from overseas 60 53.6 50 40.9 40 36.0 33.9 30 27.2 27.5 20 10 0 End of march End of march End of march End of march End of march End of march 2010
Slide 14: Main drivers of gross profit margin improvement
FY2015 Outlook 3 main drivers of gross profit margin improvement in non-consolidated operation ① Completed standardization improves the production process and reduces failure, leading to less warranty costs. The stabilizing yen’s depreciation enhances the ② profitability and cost competitiveness, an
Slide 15: The process of standardization initiative
FY2015 Outlook The process of standardization initiative Almost finished in main models. No more restriction on orders. FY2015 is the first year of Torishima standardization. We have already resumed aggressive sales activities. As of May 2015 As of May As of November 2014 2015 54％ 63％ Completed Comp
Slide 16: Benefits from standardization
FY2015 Outlook Benefits from standardization Benefits for mainly Torishima Benefits for mainly customers ● Smoother drawing process enables engineers to focus on Quicker quotation with more more creative work accuracy. ● Cut costs for procurement and Shorter delivery manufacturing Higher quali
Slide 17: Improvement of gross profit margin (non-consolidated)
FY2015 Outlook Improvement of gross profit margin (non-consolidated) Gross profit margin （non-consolidated） Currency exchange rate yen／dollar 22％ 125 120 20％ 115 110 18％ 105 100 16％ 95 Abenomics 90 launched 85 14％ 80 75 12％ FY2006 FY2007 Fy2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 70 out
Slide 18: Result and prospect of service business
FT2015 Outlook Result and prospect of service business Billion yen 20 2.6 billion yen comes from a big order for Hong Kong project within this 16.7 15 16.7 17.0 14.5 10 11.1 11.4 10.4 9.2 5 5.7 4.7 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Outlook 18 株式会社 酉島製作所
Slide 19: Medium-term management plan (consolidated)
Medium-term management plan (consolidated) billion yen FY2014 FY2015 FY2016 Result Plan Plan Amended Amended Plan ※ Result Plan ※ Plan ※ plan plan Orders 49.5 42.8 55.0 50.0 60.0 No change received Sales 49.0 46.5 50.0 43.0 55.0 50.0 Operating 0.5 0.4 1.5 1.0 2.5 No change income (1.0%) (0.9%) (3.0%
Slide 20: Increasing demand for thermal power plants in Japan
Increasing demand for thermal power plants in Japan① More than 40 power plants are scheduled to establish Resource：Engineering Network Vol.353(issued 10 April 2015） 株式会社 酉島製作所 20
Slide 21: Torishima's strength: all pumps used in thermal power plants
Torishima’s strength: Provide all pumps used in thermal power plants. Boiler circulation pump Cooling water pump Boiler feed pump Condensate pump 株式会社 酉島製作所 21
Slide 22: Business topics
Business topics ● Our “Go Green with Pumps” initiative wins the “Energy Conservation Grand Prize”. ● Increasing recognition of our new products and technology in our targeted market. for thermal ① Robust boiler feed pump power plants ② Submersible pump with motor unit for drainage pumping stations ③
Slide 23: Win the Energy Conservation Grand Prize
Win the “Energy Conservation Grand Prize” Torishima ‘s energy-efficiency initiative “Go Green with Pumps” has won the Minister’s Prize, The Ministry of Economy , Trade and Industry in the Grand Prize for Excellent in Energy Efficiency and Conservation (Business Model Category). The Energy Conservati
Slide 24: Robust boiler feed pump MHG-A
Newly developed products and technology ① Robust boiler feed pump MHG-A ●Higher pump efficiency ●Flexible to load change ●Less vibration ●Improved suction performance ※A for Advanced Torishima has developed the new type of Boiler Feed Pump, MHG-A to meet customers’ demand at the higher level amid ra
Slide 25: Pump with submersible motor
Newly developed products and technology ② Pump with submersible motor ☑ Available in emergency in which the pump is flooded. ☑ Highly quake resistance. ☑ Lower installation cost than conventional type. Conventional pumping station The Torishima solution motor Submersible Waterproof drive part motor
Slide 26: Pump with vortex preventing solution
Newly developed products and technology ③ Pump with vortex preventing solution ☑ No need for civil cost. ☑ Shorter construction and lower cost. ☑ Higher safety Excessive Flow Noise Reduction Excessive Vibration Anti-Vortex Baffles Typical Anti-Vortex Device The Torishima solution 26 株式会社 酉島製作所
Slide 27: Outlook for order by segment
Outlook for order by segment Billion yen 70 ■ High-tech pumps ■ Projects ■ Service Solutions ■ Renewable Energy and Environment 60.0 60 58.6 1.0 1.6 5.7 52.8 50.0 1.1 50 17.0 1.0 11.4 42.8 41.0 1.3 39.6 1.1 14.5 40 1.4 33.0 11.1 35.2 10.4 16.7 17.0 1.5 30 19.9 9.2 14.5 13.0 20 13.5 8.6 14.2 25.0 10
Slide 28: Inquiries
Forecasts regarding future performance in these materials are based on judgment made in accordance with information available at the time this presentation was prepared. Therefore, please notice that there is a risk or uncertainty that the actual results may be different from these predicted results