Yamazen Corporation · TSE:8051
Yamazen — FY2008 Earnings Presentation
34 slides from Yamazen's earnings presentation, May 2009
Slide 1: Yamazen 2009 FY2008 Outline
i fff YAMAZEN 2009 (GroWwihValue Plan rel5 Expectation YAMAZEN FY2008 Outline N/Beyond
Slide 2: Agenda
AGENDA Ⅰ. Overview of accounts for the fiscal year ended March 2009 Ⅱ. Earnings forecasts for fiscal 2009 Ⅲ. Progress on GVP re15, Yamazen’s mid-term management plan Ⅳ. Fiscal 2009 Initiatives Ⅴ. Corporate governance and shareholder returns
Slide 3: I. Overview of accounts for the fiscal year ended March 2009
I. Overview of accounts for the fiscal year ended March 2009 1. Financial results highlights 2. Quarterly fluctuations 3. Factors in ordinary income growth/decline 4. Divisional breakdown of sales results 5. Outlook for respective divisions 6. Balance sheet 7. Financial position and cash flow
Slide 4: 1. Financial results highlights (consolidated)
1. Financial results highlights (consolidated) ¾ The domestic production equipment and materials business struggled due to the sluggish domestic capital spending. There was a sharp decline in demand overseas from the emerging economies. Published Fiscal 2007 Fiscal 2008 Percentage Ratio to (Unit: ¥
Slide 5: 2. Quarterly changes (Net sales and Ordinary income)
2. Quarterly changes （Net sales and Ordinary income） Unit: ¥ millions (cumulative total) ＦＹ １Ｑ ２Ｑ ３Ｑ ４Ｑ 89,580 95,695 98,259 94,076 ’07/3 (185,275) (283,534) (377,610) 90,144 95,864 97,322 93,522 Net sales ’08/3 (186,008) (283,330) (376,852) 91,528 95,215 80,007 59,196 ’09/3 (186,743) (266,751) (325
Slide 6: 3. Factors in ordinary income growth/decline
3. Factors in ordinary income growth/decline (Unit: ¥ millions) Fiscal 2007 １１，４０５ Fall in Production Equipment and Materials department revenues; Gross profit exchange losses due to strong yen, etc. ▲６，１３５ 5,044 Result of increase in Consumer Durables decline ＋１，０９１ Division revenues Reductions in
Slide 7: 4. Divisional breakdown of sales results (consolidated)
4. Divisional breakdown of sales results (consolidated) (Unit: ¥ millions; %) Fiscal 2007 Published Ratio Fiscal 2008 % Department (62nd accounting (63rd accounting period) change targets to period) (modified) target M a c h i n e Tools 89,491 68,340 △ 23.6 68,000 0.5 Industrial Systems 64,547 55,45
Slide 8: 5. Outlook for respective divisions (1)
5. Outlook for respective divisions (1) ¾ All domestic production equipment and materials divisions reported declines in both revenues and profit Production equipment on the drop in demand produced by the sharp decline in and materials business capital spending and production output from the 3Q onwa
Slide 9: 5. Outlook for respective divisions (2)
5. Outlook for respective divisions (2) ¾ Housing Equipment Department revenues fell on Consumer durables sluggish housing demand, though the Home Products Division reported increases in both revenues and profit business on improvements to its original goods lineup aimed at Housing low-end consumers
Slide 10: 5. Outlook for respective divisions (3)
5. Outlook for respective divisions (3) ¾ The overseas production equipment and materials division (International Operations H.Q.) reported International declines in both revenues and profit on a downturn in Operations demand for capital equipment in the emerging economies. Overseas offices (organ
Slide 11: 6. Balance sheet (consolidated)
6. Balance sheet (consolidated) ¾ Asset efficiency and the capital adequacy ratio improved significantly on reductions in asset value. (Unit: ¥100 million) Assets Liabilities/total assets Current 1,483 liabilities ▲443 1,316 Liquid assets ▲450 872 1,033 Fixed liabilities 22 ▲39 61 258 Fixed assets N
Slide 12: 7. Financial position and cash flow
7． Financial position and cash flow ¾ Headway was made on 500 Interest-bearing debt 3.00 efforts to strengthen Net assets our financial position. 400 D/E ratio 364 368 Â Interest-bearing debts are 1.59 348 2.00 less than one-third of 300 298 281 fiscal 05/03 levels, while 242 net assets are up by a
Slide 13: II. Earnings forecasts for fiscal 2009
II. Earnings forecasts for fiscal 2009 1. Operating environment outlook 2. Earnings forecasts for fiscal 2009 3. Divisional sales targets The new building of Hiroshima Regional H.Q. (to be completed in September, 2009)
Slide 14: 1. Operating environment outlook for fiscal 2009
1. Operating environment outlook for fiscal 2009 ¾ Hopes for a speedy recovery and/or pickup either in the domestic or the global economy are remote. Business segment Focal indicators Market environment outlook※ 1 Production equipment Industrial production index The decline in exports is expected to
Slide 15: 2. Earnings forecasts for fiscal 2009 (consolidated)
2. Earnings forecasts for fiscal 2009 (consolidated) ¾ Efforts are being made to guarantee a minimum level of performance in preparation for the fiscal year ahead. (Unit: ¥ millions; %) Fiscal 2008 Sept. 30, 2008 Fiscal 2009 Item % change (63rd accounting period) (2Q closing) (64th accounting period
Slide 16: 3. Divisional sales targets (consolidated)
3. Divisional sales targets (consolidated) (Unit: ¥ millions; %) Fiscal 2008 Component Fiscal 2009 Component % Department (63nd accounting period) ratio (64rd accounting period) ratio change Machine Tools 68,340 21.0 41,500 14.3 △ 39.3 Industrial Systems 55,455 17.0 52,000 17.9 △ 6.2 Industrial Tool
Slide 17: III. Progress on GVP re15, Yamazen's mid-term management plan
III. Progress on GVP re15, Yamazen’s mid-term management plan 1. Vision and mid-term management policy 2. An overview of the GVP re15 3. Mid-term operating strategy 4. Key GVP re15 topics 5. Quantitative GVP re15 targets
Slide 18: 1. Vision and medium-term management policy
1. Vision and medium-term management policy Aiming to be a trading firm with a global presence that contributes to manufacturing and provides comfortable life spaces Increase total transactions as a trading firm that contributes to logistics Provide greater added Improve profitability Improve manage
Slide 19: 2. An overview of GVP re15
2. An overview of GVP re15 Growth April 1, 2007 to March 31, 2010 Advancing employees Growth Evolving businesses Achieve Achieve ordinary ordinary income income of of ¥15 ¥15 billion billion Growth Increase Increase net net assets assets by by ¥15 ¥15 billion billion Increasing market value Improve
Slide 20: 3. Medium-term operating strategy
3. Medium-term operating strategy Production Yamazen is seeking to become the market leader in the production equipment and equipment and materials sector, beginning with machine tool sales. We are leveraging our needs- materials responsive systems and information provision capabilities to provide m
Slide 21: 4. Key topics (1) Electronic procurement (e-MRO)
4. Key topics (1) Electronic procurement (e-MRO) Increase the volume of PROCUEbyNET ¾ Use of systems for B2B (MRO materials) transactions to streamline operations and enable the company to focus on strengthening face-to- face (proposals) selling capabilities and improving productivity. Â Seminars an
Slide 22: 4. Key topics (2) Expand overseas business
4. Key topics (2) Expand overseas production equipment and materials business Achieve a overseas sales ratio of 15% ¾ New bases have been established in the (Unit: ¥100 million) Philippines and Poland. The German 500 国際売上高 International sales 14.0 office has been incorporated. 全社シェア Company share 12
Slide 23: 5. Quantitative GVP re15 targets (consolidated)
5. Qualitative GVP re15 targets (consolidated) PL plan (revised) (Unit: ¥ millions) Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 Net sales 377,610 376,852 325,947 290,000 Operating income 12,318 11,518 6,807 3,700 Ordinary income 12,913 11,405 7,152 4,000 Net profit 7,506 5,496 3,791 2,300 Key fi
Slide 24: IV. Fiscal 2009 initiatives
IV. Fiscal 2009 initiatives 1. FY 2009 operating policy 2. FY09 initiatives 3. Key challenges for the year ahead [FY 2005] [FY 2006] [FY 2007] Participating companies: Participating companies: Participating companies: 653 645 780 CO2 reductions: 8,015 CO2 reductions: 12,332 CO2 reductions: 20,159 to
Slide 25: 1. FY 2009 operating policy
1. FY 2009 operating policy: See change as an opportunity – encourage more aggressive business practices ¾ Leverage Yamazen’s proposal capabilities, take forward-looking, affirmative action Troubles at production (technology) sites Troubles in house construction Troubles on sales floors “Synergistic
Slide 26: 2. FY 2009 initiatives (1) Production equipment and materials business
2. FY 2009 initiatives (1) Production equipment and materials business Domestic (4 divisions) sales target: ¥151.8 billion ¾ Concentration of sales resources on social gatherings to develop consolidated and close service relations. Deployment of regional managers and area leaders to strengthen pro
Slide 27: 2. FY 2009 Initiatives (2) Consumer durables business
2. FY 2009 Initiatives (2) Consumer durables business Housing equipment and materials sales target: ¥50 billion ¾ With housing demand stagnant, concentration on initiatives involving growth areas and leading manufacturers is imperative. Propose eco-friendly homes based on photovoltaic (solar) powe
Slide 28: 2. Key challenges for the year ahead: Eco-business
2. Key challenges for the year ahead: Eco-business Reduce CO2: Green Ball Project ¾ This project has been underway since fiscal 2005 in anticipation of the release of CDM products. A scheme is being developed to convert CO2 reductions achieved in the previous fiscal year to CER, the first of its kin
Slide 29: V. Corporate governance and shareholder returns
V. Corporate governance and shareholder returns 1. CSR and corporate governance at Yamazen 2. Shareholder returns 3. Current term dividends
Slide 30: 1. CSR and corporate governance initiatives
1. CSR and corporate governance initiatives ¾ In fulfilling our responsibilities as a corporation (CSR), i.e. observing the norms and ethics of society, we seek to improve our brand image and attain continuous and stable earnings growth. Â Our corporate activity charter is distributed to all group e
Slide 31: 2. Shareholder returns
2. Shareholder returns ❐Basic concept ⊿Yamazen is working to strengthen its financial structure and its management base over the mid- to long-term, and is committed to returning profits to our shareholders on a regular basis and in an amount that is commensurate with our performance as a company. ❐D
Slide 32: 3. Current term dividends
3. Current term dividends ¾ We aim to achieve a consolidated payout ratio of 40.8% ¾ Our dividend targets are for an interim dividend of ¥5.0, a year-end dividend of ¥5.0, or a total payout of ¥10.0 for the year. 100.00 25.0 80.03 Income per share 80.00 75.19 Dividend per share 20.0 58.60 60.00 15.0
Slide 33: Inquiries
Inquiries For any inquiries relating to Yamazen investor relations, please use the inquiry form provided on the company website (http://www.yamazen.co.jp).
Slide 34: Disclaimer
These materials include Yamazen’s plans, prospects of its business performance and other data. Future plans and projected figures are based on currently available information. Actual financial and other results may differ from these plans and figures depending on the various conditions and factors i