Sumitomo Heavy Industries, Ltd. · TSE:6302
Sumitomo Heavy Industries — H1 FY2007 Earnings Presentation
19 slides from Sumitomo Heavy Industries's earnings presentation, Nov 1, 2007
Slide 1: Part 1: FY2007 Interim Financial Summary and FY2007 Projections
November 1, 2007 (Thursday) Part 1: FY2007 Interim Financial Summary and FY2007 Projections Yukio Kinoshita, Executive Vice President and CFO 2007.11.1
Slide 2: Current Term Performance Evaluation
1-1 Current Term Performance Evaluation Higher Higher earnings earnings for for fifth fifth straight straight year year (mid-term (mid-term net net income) income) Summary New New records records for for orders orders received, received, sales, sales, operating operating income, income, ordinary inc
Slide 3: Financial Summary for the 1st half of FY2007
1-2 Financial Summary for the 1st half of FY2007 Unit: JPY billion 1st half of 1st half of Change FY2007 FY2006 Orders Orders received received 343.8 322.4 21.4 Amount of orders received increased in four market segments, except for environmental. Sales 305.1 273.4 31.7 Operating Sales income 35.0 2
Slide 4: Operating Income by Segment
1-3 Operating Income by Segment Standard and mass-produced Unit: JPY billion machinery 1st half of 1st half of FY2007 FY2006 Change PTC and plastics machinery experienced increases. Standard & Precision and other machinery mass-production machinery 12.7 14.0 -1.3 experienced a slump. Environmental p
Slide 5: Balance Sheet
1-4 Balance Sheet Unit: JPY billion September March September March Change Change FY2007 FY2007 FY2007 FY2007 Current assets 336.5 332.5 4.0 Liabilities 385.6 394.9 -9.3 Cash and deposits 33.4 48.2 -14.8 Notes and accounts payable 149.7 150.9 -1.2 Notes and accounts receivable 154.2 158.4 -4.2 Advan
Slide 6: Statements of Cash Flow
1-5 Statements of Cash Flow Unit: JPY billion 1st half of 1st half of Category FY2007 FY2006 Change Operating activities 11.5 23.4 -12.0 Working capital -6.2 9.9 -16.2 Operating income before interest 38.6 31.0 7.6 payment Other -20.9 -17.5 -3.4 Investing activities -11.4 -2.5 -8.9 Free cash flow 0
Slide 7: Current Term Performance Forecasts
1-6 Current Term Performance Forecasts •• Higher Higher earnings earnings forecasted forecasted for for fifth fifth straight straight year year and and increased increased profits (current term profits) forecasted for profits (current term profits) forecasted for Summary seventh straight year. seven
Slide 8: FY2007 Forecast of Operating Results
1-7 FY2007 Forecast of Operating Results Unit: JPY billion 1st half of 1st half of FY2007 FY2006 FY2007 Actual FY2006 Actual Forecast Actual Orders received 343.8 322.4 730.0 707.4 Sales 305.1 273.4 660.0 600.3 Operating income 35.0 26.8 77.0 64.2 Operating income ratio 11.5% 9.8% 11.7% 10.7% Ordina
Slide 9: FY2007 Forecast of Sales and Operating Income by Segment
1-8 FY2007 Forecast of Sales and Operating Income by Segment Unit: JPY billion st st 1 half of 1 half of FY2007 FY2006 FY2007 FY2006 Change Forecast Actual Change Actual Actual Sales 110.2 107.4 2.9 236.0 222.9 13.1 Mass-produced Operating income machinery 12.7 14.0 -1.3 31.0 28.8 2.2 Operating inco
Slide 10: FY2007 Forecast of Orders Received and Sales by Segment
1-9 FY2007 Forecast of Orders Received and Sales by Segment Unit: JPY billion 800 Orders received Sales 100 Operating income 730.0 707.4 80 77.0 660.0 64.2 17.5 60 603 168.1 189.0 600.3 47.5 14.4 12.0 600 40 8.5 9.5 11.0 551.3 183 5.8 6.7 4.1 4.5 5.5 136.4 160.2 20 93.6 89.0 126.4 30.0 28.8 31.0 0 6
Slide 11: Part 2: Management Strategy
November 1, 2007 (Thursday) Part 2: Management Strategy Progress of Medium-term Management Plan “Leap to Excellence ’07” Yoshinobu Nakamura, President and CEO 2007.11.1
Slide 12: Medium-Term Management Plan 'Leap to Excellence '07'
2-1 Medium-Term Management Plan “Leap to Excellence ’07” Progress of FY2007 Aiming to “Grow and Expand by Raising Levels of Top Line Growth Incomes” targets Medium-term targets Evolving Evolving into into aa “company “company that that systematically systematically creates creates knowledge” knowled
Slide 13: Performance Transition
2-2 Performance Transition Upward revision of forecasts for FY2007: Sales of JPY 660 billion and operating income of JPY 77 billion Sales & invested capital Operating income & ROIC JPY700 billion JPY 660.0 billion JPY 77.0 650 billion JPY80 billion 600 JPY 64.2 JPY 600.3 billion 550 60 Sales billion
Slide 14: Implementation Status by Segment
2-3 Implementation Status by Segment Unit: JPY billion 1st half o FY2007 Actual FY2007 Forecast Segment Market Strategy Sales Operating Sales Operating income income Expand sales to China and Europe. Power transmission & 47.7 Enhance capacities of overseas production 100.0 Mass-produced machinery co
Slide 15: Topics
2-4 Topics Favorable Favorable number number ofof orders orders taken taken for for medium medium to to Increased Increased market market share share of of large large power power transmissions transmissions injection injection molding molding machines machines Product for Leap to Excellence Transit
Slide 16: Topics
2-5 Topics Specializing Specializing in in standardized standardized ships ships for for Orders serial Orders for for large large cranes cranes stacking stacking up up favorably favorably serial ship ship building building Aflamax-type oil tanker Goliath crane Responding Responding to to increasing
Slide 17: Topics
2-6 Topics Favorable Mobile Mobile cranes cranes performing performing well well Favorable sales sales of of superior superior LEGEST LEGEST in in North North American American market market Product for Leap to Excellence LEGEST Mobile crane Equipment Equipment that that complies complies with with
Slide 18: Overseas Sales
2-7 Overseas Sales JPY billion Sales by regional segments 700 600 1013 500 312 313 Other Asian regions 400 1123 China 300 Europe 544 244 443 160 200 3242 North America 573 229 534 149 Japan 100 1448 1461 0 2004 2005 2006 2006 1st half 2007 1st half Overseas 38% 42 % 46% 47% 52% ratio ¾ ¾Overseas: Ov
Slide 19: Overseas Location Strategies
2-8 Overseas Location Strategies Promotion of new establishment and enhancement of overseas locations Design location Manufacturing plant June June 2007 2007 (Kentucky) (Kentucky) Manufacturing location in Vietnam Enhancement Enhancement on on production production capacity capacity at at mobile mob
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