Shimadzu Corporation · TSE:7701
Shimadzu — Q1 FY2024 Earnings Presentation
39 slides from Shimadzu's earnings presentation, Aug 7, 2024
Slide 1: 1st Quarter FY 2024 Results & Financial Position
Contributing to Society through Science and Technology Shimadzu Corporation (TSE Prime Market: Securities code 7701) 1st Quarter FY 2024 (Ending March 2025) Results & Financial Position Director, Member of the Board Senior Managing Executive Officer, CFO August 7, 2024 Akira Watanabe
Slide 2: Overview of Financial Results
Excellence in Science Overview of Financial Results & Best for Our Customers 01 Overview of Financial Results Copyright © Shimadzu Corporation. All Rights Reserved. | FY 2024 Q1 Results 2
Slide 3: Overview of Q1 FY2024
• AMI: Analytical & Measuring Instruments, MED: Medical Systems, IM: Industrial Machinery, AE: Aircraft Equipment Excellence in Science Overview of Q1 FY2024 • AMI key models (LC: Liquid Chromatographs, MS: Mass Spectrometer Systems, GC: Gas Chromatographs), & Best for Our Customers TMP: Turbomolecu
Slide 4: Summary of Results
Excellence in Science Summary of Results & Best for Our Customers Net Sales 116.9 bn yen YoY +7 % Operating Income 11.0 bn yen YoY -17 % Operating Margin 9.4 % YoY -2.8 pt Net Income 10.0 bn yen YoY -10 % Exchange Rate Depreciation and Exchange Rates R&D Expenses CAPEX Amortization Effect 155.93 yen
Slide 5: YoY Change in Operating Income (Consolidated)
Excellence in Science YoY Change in Operating Income (Consolidated) & Best for Our Customers Sales: Covered the impact of actual sales decrease with value -added appeal (price revisions) +1.4 billion yen Manufacturing: Impact of production restrictions on factory balance, etc. -2.2 billion yen Growt
Slide 6: Sales and Income by Segment
Excellence in Science Sales and Income by Segment & Best for Our Customers Sales of AMI, IM, and AE, and OP of IM and AE achieved record high. Sales of AMI (record high): Sales of MED: Sales of IM (record high): Sales of AE (record high): ・Key models increased for pharma and ・Our flagship product, A
Slide 7: Analytical & Measuring Instruments / Business Environment and Sales
Analytical & Measuring Instruments / Business Environment and Sales Business Environment Pharma in Healthcare: Japan remains steady. North America is showing signs of recovery. India continues to expand. China is showing signs of recovery while drug discovery and contract analysis markets still chal
Slide 8: Analytical & Measuring Instruments / Sales by Region
Analytical & Measuring Instruments / Sales by Region Japan: Strong performance with key models increasing by 11% YoY. Testing Machines increased for new materials. North America: Sales increased for pharma and a specific customer. India: Strong performance continued. China and Other Asian Countries
Slide 9: YoY Change in Operating Income of AMI
Excellence in Science YoY Change in Operating Income of AMI & Best for Our Customers Sales: Despite promoting value-added appeal (price revisions), it was not enough to offset the decrease in gross profit due to reduced sales in China. -0.3 billion yen Manufacturing: Impact of production restriction
Slide 10: Medical Systems / Business Environment and Sales
Medical Systems / Business Environment and Sales - Business Environment - North America: Showing signs of recovery. Japan: Recovery slower than expected. China: Weak performance due to anti-corruption measures and buying restraint before government stimulus is implemented. (bn yen) X-Ray Systems X-R
Slide 11: Industrial Machinery / Business Environment and Sales
Industrial Machinery / Business Environment and Sales - Business Environment - TMP: Demand for semiconductor manufacturing equipment recovers. Demand for green, on the other hand, slows down due to the increase in solar cell inventory in China. Hydraulic Pumps: The construction machinery market is w
Slide 12: Aircraft Equipment / Business Environment and Sales
Aircraft Equipment / Business Environment and Sales - Business Environment - Defense: Demand increases due to the government's policy to strengthen defense capabilities. Commercial Aircraft: With the increase in air passenger demand, there is an increase in demand for components for commercial aircr
Slide 13: Recurring Sales and Ratio
Excellence in Science Recurring Sales and Ratio & Best for Our Customers AMI: Sales increased 9% YoY to 30.2 bn yen. Maintenance services for LC and MS increased. MED: Sales increased 6% YoY to 6.3 bn yen. Maintenance services for Fluoroscopy and Angiography Systems increased. TMP: Sales increased 5
Slide 14: Balance Sheet
Excellence in Science Balance Sheet & Best for Our Customers As of June 30, 2024, total assets decreased by 9.1 bn yen to 664.9 bn yen compared to March 31, 2024. (bn yen) Current liabilities 141.4 (-17.1) Assets Current assets -14.2 Non-current liabilities 23.5 (+0.4） ⚫ Decrease in cash and deposit
Slide 15: FY 2024 Earnings Forecast
Excellence in Science Overview of Financial Results & Best for Our Customers 02 FY 2024 Earnings Forecast Copyright © Shimadzu Corporation. All Rights Reserved. | FY 2024 Q1 Results 15
Slide 16: Business Environment by Market
Excellence in Science Business Environment by Market & Best for Our Customers The outlook remains uncertain, including factors such as ongoing geopolitical risks, the impact of inflation, and exchange rates. Therefore, focus on expanding markets in the four areas of Healthcare, Green, Material, and
Slide 17: AMI Orders YoY by Region
Excellence in Science AMI Orders YoY by Region & Best for Our Customers Japan: Active investments in generics and CDMOs. North America: Recovery trend, particularly among major pharmaceutical companies. India: Continued strengthening of domestic pharmaceutical production. Europe: Orders for clinical
Slide 18: AMI in China - Orders
AMI in China - Orders - Orders increased by 20% in Q1 FY2024 compared to the previous quarter, with Q4 FY2023 marking a bottom. Pharmaceutical orders have been recovering for two consecutive quarters since bottoming out in Q3 FY2023, with a 5% increase in Q1 FY2024 compared to the previous quarter.
Slide 19: AMI in China - Business Outlook and Measures
Excellence in Science AMI in China - Business Outlook and Measures - & Best for Our Customers The “Action Plan to Promote Large-scale Equipment Renewals and Trade-ins of Consumer Goods” is expected to contribute to the second half (Oct.-Mar.) sales, particularly in academia. Demand for Healthcare in
Slide 20: FY 2024 Earnings Forecast
Excellence in Science FY 2024 Earnings Forecast & Best for Our Customers No change from the initial forecast announced on May 13, 2024. Net Sales 525.0 bn yen YoY +3 % Operating Income 76.0 bn yen YoY +4 % Operating Margin 14.5 % YoY +0.3 pt Net Income 58.0 bn yen YoY +2 % Foreign Exchange Depreciat
Slide 21: FY 2024 Earnings Forecast by Segment
Excellence in Science FY 2024 Earnings Forecast by Segment & Best for Our Customers No change from the initial forecast announced on May 13, 2024. Expand sales in growth areas and regions within each segment to achieve continuous growth. Units: Net Sales Operating Income Operating Margin Billions of
Slide 22: Topics: New Products in AMI and MED
通期決算セグメント別業績 Excellence in Science & Best for Our Customers 03 Topics • New Products in AMI • New Product & News in MED Copyright © Shimadzu Corporation. All Rights Reserved. | FY 2024 Q1 Results 22
Slide 23: New Products in AMI
Excellence in Science & New Products in AMI Best for Our Customers Launched New LCMS Series to Meet Needs for ‘Stable Launched Fully Automated Sample Preparation Module to Equipment to Obtain Accurate Data’ and ‘Easy Operation for Meet the Need for ‘Shortening Pretreatment Processes in Users Unfamil
Slide 24: New Products in AMI
Excellence in Science & New Products in AMI Best for Our Customers Launched World's First Product Capable of Identifying Biofuel Launched Gas Chromatograph Capable of Simultaneous Components, Jointly Developed with TotalEnergies (France), Analysis of Major Greenhouse Gas Components Using NARO the Un
Slide 25: New Product & News in MED
Excellence in Science & New Product & News in MED Best for Our Customers Launched a New Radiography System Equipped with an "BresTome" Receives FDA Approval in May 2024, Supporting Optical Camera that Detects Patient Movement, Aiming to Brain Research and Diagnosis of Various Neurodegenerative Reduc
Slide 26: Cautionary note on forecasts and IR contact
Actual results may differ significantly from forecasts about future performance indicated in this document, due to fluctuations in economic conditions, exchange rates, technologies, or various other external factors. Contact: Investor Relations Group, Corporate Communication Department, Shimadzu Cor
Slide 27: Supplementary Materials
Excellence in Science Supplementary Materials & Best for Our Customers Supplementary Materials Copyright © Shimadzu Corporation. All Rights Reserved. | FY 2024 Q1 Results 27
Slide 28: Consolidated Earnings Result
Excellence in Science Consolidated Earnings Result & Best for Our Customers Q1 (Apr.-Jun.) YoY Units: Billions of yen FY2023 FY2024 Changes % Net Sales 109.2 116.9 +7.7 +7% Operating Income 13.2 11.0 -2.3 -17% Business Operating Margin 12.1% 9.4% -2.8pt Results Ordinary Income 15.7 13.7 -2.0 -13% Pr
Slide 29: AMI / Net Sales Ratio (Q1)
Excellence in Science AMI / Net Sales Ratio (Q1) & Best for Our Customers Model Region Market Other Count Other ries Asian 6% Other Countries 6% Japan 25% 15% 14% 31% 25% Healthcare 31% Other 42% 38% 43% 38% Key Models 57% 58% 18% 27% China 10% Academia/ 25% 12% North Government America 17% 19% 11%
Slide 30: AMI / YoY Change for Net Sales of Key Models
Excellence in Science AMI / YoY Change for Net Sales of Key Models & Best for Our Customers LC for pharma increased in Japan, North America, and India. LC significantly decreased in China, but increased quarter-on-quarter. MS increased for pharma in Japan and for clinical examination in Europe. MS s
Slide 31: Analytical & Measuring Instruments / Net Sales by Region
Analytical & Measuring Instruments / Excellence in Science & Net Sales by Region Best for Our Customers Units: YoY Billions of yen FY2022 FY2023 FY2024 Overview Changes % ・LC and MS for pharma increased. Japan 20.9 22.1 23.2 +1.1 +5% ・GC increased for wide-range of areas, especially energy developme
Slide 32: AMI / YoY Change in Net Sales by Region
Excellence in Science AMI / YoY Change in Net Sales by Region & Best for Our Customers Japan: LC and MS for pharma and Testing Machines for Green increased. Overseas: In China, sales for pharma significantly decreased. Academia also saw a reactionary decline from last year’s special demand. However,
Slide 33: AMI / Net Sales Ratio by Domain (Q1)
Excellence in Science AMI / Net Sales Ratio by Domain (Q1) & Best for Our Customers Net Ratio of Total Markets and Main Sales Overview Industries Net Sales Ratio FY2023 FY2024 YoY by Market Healthcare • Pharmaceuticals ・Sales for pharma increased in Japan, North America, and foods India, but decreas
Slide 34: MED / Net Sales Ratio (Q1)
Excellence in Science MED / Net Sales Ratio (Q1) & Best for Our Customers Model Region Other Countries Other 16% 26% 12% 73% Other 27% Asian 11% Japan X-Ray Countries 45% Systems 12% 49% 74% 10% China 6% 6% Europe 12% 6% North America 15% • Pie chart outer rings indicate FY 2024 results and inner ri
Slide 35: MED / Net Sales by Region
Excellence in Science MED / Net Sales by Region & Best for Our Customers YoY Units: Billions of yen FY2022 FY2023 FY2024 Overview Changes % ・New Angiography and Radiography Systems increased. Japan 9.4 7.1 7.0 -0.1 -1% ・Fluoroscopy Systems decreased due to delay in market recovery. Overseas 7.0 7.3
Slide 36: MED / YoY Change in Net Sales by Region
Excellence in Science MED / YoY Change in Net Sales by Region & Best for Our Customers Japan: Although new Angiography and Radiography System sales increased, Fluoroscopy System sales decreased. Overseas: In North America, sales of Patient-side Fluoroscopy Systems increased. In China, there was a si
Slide 37: IM / YoY Change in Net Sales by Model
Excellence in Science IM / YoY Change in Net Sales by Model & Best for Our Customers TMP: Sales for Semiconductor Manufacturing Equipment significantly increased. Hydraulic Pumps: Demand for small construction machinery remained soft. Other models: Industrial Furnace sales increased for manufacturin
Slide 38: Recurring Sales Ratio
Excellence in Science Recurring Sales Ratio & Best for Our Customers AMI: Maintenance services for pharma in Japan and North America, and for clinical purposes in Europe increased. MED: Maintenance services increased in North America through M&A of a distributor. TMP: Maintenance services increased
Slide 39: Innovation through Industry-Academia Collaboration
Excellence in Science Innovation through Industry-Academia Collaboration & Best for Our Customers Develop innovative technologies and products, and implement new services socially through active co-creation. Healthcare Tohoku University Healthcare Philippine Institute of Pure March 2024 and Applied