Briefing on Financial Statements for the First Half of the Year Ending March 2016

Transcription

1 Briefing on Financial Statements for the First Half of the Year Ending March 216 November 12, Copyright 215 TSUGAMI CORPORATION All rights reserved.

2 1. Business performance for the First Half of the Year Ending March 31, 216 P. 2-6 (1) Business Results (2) Net Sales by Geographic Segment (3) Net Sales by Business Segment (4) Balance Sheets (5) Cash flows 2. Business Conditions and Outlook P. 7-9 (1) Outlook for Fiscal Year Ending March 31, 216 (2) New Products (3) R&D Expenditures, Capital Investment and Depreciation 3. Business Strategies and Capital Policy P (1) Business Strategies (2) Sales situation breakdown (3) Capital Policy (4) Shareholder Returns 4. Reference P Net Sales by Machinery Category Orders Received and Order Backlogs Factories in China and India 1

3 1. Business performance for the First Half of the Year Ending March 31, 216 (1) Business Results Overview of First half of FY216/3 [Net sales] -8.6bn yen (-29%)YoY; -4.9bn yen (-19%) vs. Initial forecast There was large IT-related demand a year ago. The Chinese market started to slow in the 2Q. [Net income] -2.7bn yen (-8%) YoY; -1.6bn yen (-7%) vs. Initial forecast Sales declined. The cost rate worsened due to production adjustments. Additional social insurance premiums were posted in association with overtime working hours at subsidiary in the 1Q. FY215/3 (214/4 215/3) 1H of FY216/3 (215/4 215/9) 1H 2H Full-year 1H Year-on-Year Initial forecasts Difference from initial forecasts Net sales Gross profit (Gross profit margin) (27.%) (25.4%) (26.3%) (24.7%) (-2.4%) ( - ) ( - ) Operating income (Operating income margin) (16.%) (.2%) (13.4%) (6.2%) (-9.8%) (13.8%) (-7.6%) Ordinary income (Ordinary income margin) (16.4%) (11.7%) (14.3%) (4.%) (-12.4%) (13.1%) (-9.1%) Net income (Net income margin) (11.5%) (7.7%) (9.8%) (3.2%) (-8.2%) (8.8%) (-5.6%) Net income per share 47.2 yen 27.2 yen 74.4 yen.1 yen yen 33.6 yen yen 2

4 (2) Net Sales by Geographic Segment Six-month % % % % % % % % % % % 1H 2H 1H 2H 1H 2H 1H 2H 1H FY212/3 FY213/3 FY214/3 FY215/3 FY216/3 Full-year FY212/3 FY213/3 FY214/3 FY215/3 Export Ratio Asia Europe U.S.A. Domestic demand % 9% 8% 7% 6% 5% 4% 3% 2% % % 3

5 (3) Net Sales by Business Segment Aiming to boost sales by launching new products for automobile parts in 3Q of FY214/3. Six-month Full-year 6 IT Other (hydraulic and pneumatic equipment, medical equipment and others) Automobile H 2H 1H 2H 1H 2H 1H 2H 1H FY212/3 FY213/3 FY214/3 FY215/3 FY216/3 FY212/3 FY213/3 FY214/3 FY215/3 4

6 (4) Balance Sheets 214/9E 215/3E 215/9E Difference from 215/3E Total assets Current assets Cash and deposits Trade notes and accounts receivable Inventories Deferred tax assets and others Fixed assets Tangible fixed assets Note Intangible fixed assets Investments and other assets Note Total liabilities Current liabilities Trade notes and accounts payable Short-term borrowings Accrued income tax and others Long-term liabilities Total net assets Common stock, Capital surplus Retained earnings Treasury shares Note Unrealized gains on marketable securities Translation adjustments and others Capital adequacy ratio 56.7% 64.1% 58.8% -5.3% Note 1 Storehouse in China factory and others: +.1 Production machines: +.3 Depreciation and others: -.6 Effect of exchange rate: -.1 Note 2 Valuation of investment securities: -.9 Loan to India subsidiary: +.3 Note 3 Number of treasury shares (thousand): 5,285 8,5 (+2,765) 5

7 (5) Cash flows FY214 1H (214/4-214/9) FY214 2H (214/ - 215/3) FY215 1H (215/4-215/9) Cash flows from operating activities Income before taxes, depreciation and amortization Note Gross working capital Note 2.4 Corporate and other taxes Cash flows from investing activities Capital investment in factories Note Indian subsidiary Note Purchase of investment securities and others Cash flows from financing activities Short-term borrowings Dividends paid Purchase of treasury shares Note Translation differences for cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the end of the term Note 1 Income before taxes:.89 Depreciation and amortization:.57 Note 2 Notes and accounts receivable:.78 Notes and accounts payable: 2.33 Inventories: Other current assets:.62 Note 3 Production machines in China: -.24 Production machines in Japan: -.5 Note 4 Long-term loans: -.33 Note 5 2,967 thousand shares purchased 6

8 2. Business Conditions and Outlook (1) Outlook for Fiscal Year Ending March 31, 216 Outlook for FY216/3 Steady in Japan, Europe, and the United States. The Chines market will slow. Products for auto parts will continue to perform well. Turret lathes will boost results. Demand related to smartphones, is not factored in. Planning to sell main spindles outside the Group. (The sales are expected to contribute to results from the next fiscal year.) Semi-annually Full-year FY214 1H FY214 2H FY215 1H FY215 2H Revised forecasts FY214 FY215 Revised forecasts Year-on-year FY215 Initial forecasts Difference from initial forecasts Net sales Operating income (Operating income margin) (16.%) (.2%) (6.2%) (8.%) (13.4%) (7.1%) (-6.3%) (13.9%) (-6.8%) Ordinary income (Ordinary income margin) (16.4%) (11.7%) (4.%) (8.%) (14.3%) (6.%) (-8.4%) (13.%) (-7.%) Net income (Net income margin) (11.5%) (7.7%) (3.2%) (5.4%) (9.8%) (4.3%) (-5.5%) (8.9%) (-4.6%) Net income per share 47.2 yen 27.2 yen.1 yen 16.7 yen 74.4 yen 26.8 yen yen 7.3 yen yen 7

9 (2) New Products Orders start Main target Released in FY215/3 Automatic lathes B23/B24/B25/B26-Ⅲ, B123/124/125/126-Ⅲ, B73/74/75-Ⅲ Automatic lathes B28W, C3-Ⅳ, C3H 4Q of FY215/3 3Q of FY215/3 IT, Automobile small sized parts and Others IT, Automobile small sized parts and Others Turning center TMA8J, TMA8H 3Q of FY215/3 Automobile parts and Others Automatic lathes B165 2Q of FY216/3 IT, Automobile small sized parts and Others Scheduled for release in FY216/3 Automatic lathes M6/8J-Ⅱ, M6/8D-Ⅱ, M6/8SD-Ⅱ, M6/8SY-Ⅱ Automatic lathes BW29Z 2Q of FY216/3 3Q of FY216/3 Automobile parts and Others IT, Automobile small sized parts and Others Turning center TMA8JC, TMA8H-5AX 3Q of FY216/3 IT, Automobile parts and Others 8

10 (3) R&D Expenditures, Capital Investment and Depreciation R&D Expenditures FY212/3 FY213/3 FY214/3 FY215/3 FY216/3 (forecast) 1H.65 Capital Investment and Depreciation Investments in capital of Indian production subsidiary Investments in capital of Indian production.32 subsidiary Long-term loans to Indian production subsidiary Long-term loans to Indian production subsidiary Capital Investment Investment in overseas subsidiaries Securities Investment Depreciation FY212/3 FY213/3 FY214/3 FY215/3 FY216/3 (forecast) H.33 1H H.57 9

11 3. Business Strategies and Capital Policy (1) Business Strategies Product development strategy Launching new products in growth fields Enhance the main products and accelerate launches of new products for IT and Electronic components: Continuing to focus on core markets for Automobile parts: Increasing sales level based on its stable demand for Complicated parts (Medical equipment, Aircraft components etc.) Other new products Regional strategy Business strategy targeting growing areas Enhance production and sales in global markets Expanding the production categories of machinery manufactured and further strengthening production efficiency in China. Raising volume production and Reinforcement of sales system in India: Developing markets with TSUGAMI India Strengthening sales capabilities in Europe: Increasing sales and service staff at TSUGAMI EUROPE GmbH Operating income Net sales FY214/3 FY213/3 FY212/3 FY211/3 FY2/3 FY29/3 FY28/3 FY27/3 FY26/3 FY25/3 FY24/3 FY23/3 FY22/3 FY21/3 FY215/3 FY216/3 (Forecast)

12 (2) Sales situation breakdown 6 5 Reconstruction demand after the Thai flooding Smartphone-related HDD-related General demand (stable market) Has been working to boost sales of HDD from FY23/3, but demand fluctuates violently. 4 Reconstruction demand after the Thai flooding was in FY212/3 and FY213/3. 3 Started to sell products for smartphones in FY212/3. 2 Launched new products for auto parts in the 3Q of FY214/3 to boost sales. FY26/3 FY27/3 FY28/3 FY29/3 FY2/3 FY211/3 FY212/3 FY213/3 FY214/3 FY215/3 FY216/3 (Forecast) 11

13 ' (3) Capital Policy Thousand shares, Outstanding shares Outstanding shares (excluding treasury shares) Treasury shares BPS (Book-value per share) EPS (Earnings per share) Yen 9, 89,14 8, 7, 6, 5, 89,19 79,19 Retirement 67,888 New issue Retirement 68,19 65,879 73,536 74,919 66, , 3, ,, 6 21/3E 22/3E 23/3E 24/3E 13,99 25/3E 26/3E 27/3E /3E 29/3E 8,5 2,141 5,285 2/3E 211/3E 212/3E 213/3E 214/3E 215/3E 215/9E """ 列 2 FY21/ FY22/3 FY23/3 FY24/3 -.7 FY25/3 FY26/3 FY27/ FY2/3 FY29/3 FY28/3 FY211/3 FY212/3 FY213/3 FY214/3 4.7 FY215/3 FY216/3 (Forecast) - 12

14 (4) Shareholder Returns FY1/3 FY2/3 FY3/3 FY4/3 FY5/3 FY6/3 FY7/3 FY8/3 FY9/3 FY/3 FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY16/3 (forecast) Dividends paid (Full-year per share) ( yen) ( yen) ( yen) ( yen) (5 yen) (8 yen) ( yen) ( yen) ( yen) (5 yen) ( yen) ( yen) (12 yen) (12 yen) (14 yen) (16 yen) Purchase of treasury shares Total return Dividend payout ratio % 11.2% 21.6% 43.4% % 29.5% 21.% 254.2% 18.8% 61.1% Total return ratio.%.% % 44.5% 95.9% 16.2% % 3.6% 21.% 453.5% 53.5% Net income Total return ratio ( Dividends paid ) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 FY28/3 FY29/3 FY2/3 FY211/3 FY212/3 FY213/3 FY214/3 FY215/3 FY216/3 (forecast) 13

15 Reference Net Sales by Machinery Category Six-month Full-year Other businesses Rolling machines, etc. Machining centers Grinding machines Automatic lathes H 2H 1H 2H 1H 2H 1H 2H 1H FY212/3 FY213/3 FY214/3 FY215/3 FY216/3 FY212/3 FY213/3 FY214/3 FY215/3 14

16 Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Order backlogs Foreign Demand Domestic Demand Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Orders Foreign Demand Domestic Demand 2/9E 211/3E 211/9E 212/3E 212/9E 213/3E 213/9E Orders Received and Order Backlogs 214/3E 214/9E 215/3E 215/9E

17 Factories in China and India China Factory Factory No. 3 Shinagawa Precision Machinery (Zhejiang) river Factory No. 2 Foundry Factory Sheet-metal Factory Factory No. 4 7 No.6 号棟 No.7 No.8 river 津上精密机床 ( 浙江 ) 有限公司 China 中国工場 Factory 総土地面積 Total Area 147,17m2 Land: 141,921 総建物面積m2 Buildings: 65,54 91,945 m2m2 Factory No. 1 India Factory India Factory Land: 14,695 m2 Building: 5,89 m2 16

18 The content in this material is premised on various assumptions and does not ensure or guarantee the realization of the planned figures and/or future policies stated herein. Copyright 214 TSUGAMI CORPOTRATION All rights reserved.