Financial Summary. Aug. 10, 2018 NIKKISO CO., LTD. Securities code: 6376

Transcription

1 Financial results for Q2 Financial Summary Aug. 10, 2018 NIKKISO CO., LTD. Securities code: 6376 Disclaimer This material contains forward-looking statements about future business performance. These statements by definition involve risks and uncertainties and are not intended to guarantee future performance. Actual results in the future may differ from the estimates presented in the material herein due to changes in the business environment and other factors.

2 Financial results for Q2 News Topic Phase I of construction work of Miyazaki plant completed at the end of July 2018 Total investment (planned): 17 billion *by the end of Aerospace plant + administrative building: 11.2 bn -Industrial and other business: 4.5 bn -Land: 1.3 bn Aims of the new plant The new plant is intended to expand productivity, yield advanced technologies and optimize manufacturing, and ultimately establish a company-wide quality control system. Schedule Aerospace plant starts operation Autumn 2018 Construction of cryogenic pump test facilities Cryogenic pump plant starts operation Establishment of quality control system and of development with advanced technologies in all business fields Copyright 2018 NIKKISO CO., LTD. All rights reserved. 2

3 Financial results for Q2 Consolidated Performance FY2017 Q2 Jan.2017 Jun Q2 Jan Jun Change YoY comparison Change rate Orders 64,547 84, , % Revenue 62,910 75, , % Operating profit 2,441 3, % Operating margin 3.9% 4.2% Profit before tax 2,316 2, % Pretax profit margin 3.7% 3.7% Profit for the year attributable to owners of the company 1,762 2, % Profit margin attributable to owners of the company 2.8% 2.7% Average foreign exchange rate Against the US dollar (Yen) Against the euro (Yen) Copyright 2018 NIKKISO CO., LTD. All rights reserved. 3

4 Financial results for Q2 Breakdown of Profit/Loss FY2017 Q2 Jan.2017 Jun Q2 Jan Jun Change Remarks Gross profit 21,685 25,772 +4,087 - Selling, general and administrative expenses 19,830 22,967 3,136 Increase due to joining of CI Group - Other income Other expenses Operating profit 2,441 3, Financial income Financial costs Increase in interest expenses( 158) Increase in foreign exchange loss due to the appreciation of the yen(-132) - Share of profit of associates and joint ventures accounted for using the equity method Profit before tax 2,316 2, Exchange rate for the conversion of the performance of overseas subsidiaries - Against the US dollar (Yen) Against the euro (Yen) Copyright 2018 NIKKISO CO., LTD. All rights reserved. 4

5 Financial results for Q2 Performance by Business Segment FY2017 Q2 Jan.2017 Jun Q2 Jan Jun YoY comparison Change Change rate Industrial Business Industrial Division Precision Equipment Division Aerospace Division Medical Business Orders 38,360 54, , % Revenue 36,424 46, , % Operating profit 2,610 2, % Operating margin 7.2% 5.7% Orders 25,592 39, , % Revenue 23,998 33,567 +9, % Orders 4,996 6,705 +1, % Revenue 4,798 5, % Orders 7,675 8, % Revenue 7,569 8, % Orders 26,187 30,132 +3, % Revenue 26,485 28,791 +2, % Operating profit 1,816 2, % Operating margin 6.9% 7.5% Corporate expenses, etc. Operating profit 1,985 1, Copyright 2018 NIKKISO CO., LTD. All rights reserved. 5

6 Financial results for Q2 Industrial Division 1. Overview The petroleum and natural gas markets are expected to recover and expand as evidenced by a rise in crude oil prices and a worldwide expansion in the LNG market both from supply and demand perspectives. This increased orders received by LEWA and CI Group, which thus are on a recovery track. In domestic pump business, cryogenic pump business for LPG facilities demonstrated strong performance, which improved the performance of overall industrial business. 2. Consolidated performance 3. Revenue Composition ratio by Product FY2017 Q2 Jan.2017 Jun Q2 Jan Jun YoY comparison 4% 往復動ポンプ Reciprocating pump Orders 25,592 39,826 Change + 14,234 Change rate +55.6% Revenue 23,998 33,567 +9, % 22% 8% Q2 19% 7% 40% キャンドモータポンプ Canned motor pump クライオジェニックポンプ Cryogenics pump Geveke CI グループ Group その他 Others Copyright 2018 NIKKISO CO., LTD. All rights reserved. 6

7 Financial results for Q2 Performance trend of LEWA Millions of 受注高 ( 左軸 ) 売上収益 ( 左軸 ) EBITDA( 左軸 ) 受注残高 ( 右軸 ) Orders (Left axis) Revenue (Left axis) EBITDA (Left axis) Orders backlog (Right axis) Q1 Q2 Q3 Q4 Q12 Q23 Q34 Q45 18 計画 (Forecast) 2017 YTD 2018 YTD 7 Copyright 2018 NIKKISO CO., LTD. All rights reserved. 7

8 百万 Financial results for Q2 Performance trend of Cryogenic Industries Group Millions of $ ACD Revenue 売上収益 (Left ( 左軸 axis) ) Cryoquip Revenue 売上収益 (Left ( 左軸 axis) ) Cosmodyne Revenue 売上収益 (Left ( 左軸 axis) ) EBITDA( (Right 右軸 ) axis) FY2017 Q1 FY2017 Q2 FY2017 Q4 Q1 Q2 Q4( 計画 (Forecast) ) FY2017 unaudited Copyright 2018 NIKKISO CO., LTD. All rights reserved. 8

9 Financial results for Q2 Precision Equipment Division 1. Overview In power plant business, inquiries about water-conditioning system for Southeast Asia were on an increasing trend. We will strive for a steady increase in orders received in the second half of. Due to an expansion in usage of electronic components, investment in the relevant manufacturing industry is buoyant, which considerably increased orders received of the new warm isostatic laminator. 2. Consolidated performance 3. Revenue Composition ratio by Product FY2017 Q2 Jan.2017 Jun Q2 Jan Jun YoY comparison Change Change rate Orders 4,996 6,705 +1, % 23% 6% Q2 0 30% 水質調整システム Water conditioning system 粉体計測 Precision equipment ファインセラミック Fine ceramics その他 Others Revenue 4,798 5, % 41% Copyright 2018 NIKKISO CO., LTD. All rights reserved. 9

10 Financial results for Q2 Aerospace Division 1. Overview Although a partial decline in cascade demand continued from Q1 and slightly reduced revenue compared to the initial plan, business saw an increase in revenue year-on-year due to steady growth in shipments of items produced at the first plant in Hanoi, Vietnam. We will implement the growth strategy for further profitability by re-establishing the production system including the new plant in Miyazaki to be put into operation this autumn and the second plant in Hanoi, Vietnam, to be completed this autumn. 2. Consolidated performance 3. Revenue Composition ratio by Product FY2017 Q2 Jan.2017 Jun Q2 Jan Jun YoY comparison Change Change rate Orders 7,675 8, % 25% 9% 4% Q2 45% カスケード Cascade ナセル部品 Nacelle parts 翼部品 Wing parts エンジン部品 Jet engine parts Revenue 7,569 8, % 17% その他 Others Copyright 2018 NIKKISO CO., LTD. All rights reserved. 10

11 Financial results for Q2 Medical Division 1. Overview In the hemodialysis-related business, the demand for hemodialysis equipment recovered in the domestic market, which led to an increase in sales of disposables such as blood tubing lines. In overseas markets, sales of knock-down kits continued strong in China, and sales grew in Asia, which led to an increase in revenue and profit year-on-year in the hemodialysis-related business as a whole. In the CRRT business, temporary expenses were posted to restructure the development system. However, strong sales of equipment in our mainstay Chinese market made up for slow sales in other countries, which led to an increase in revenue year-on-year. 2. Consolidated performance 3. Revenue Composition ratio by Product FY2017 Q2 Jan.2017 Jun Q2 Jan Jun YoY comparison Change Change rate 19% 16% (Japan) Dialysis machines (Overseas) Dialysis machines Orders 26,187 30,132 +3, % 8% 12% Q2 13% (Japan) Disposable (Overseas) Disposable Maintenance Revenue 26,485 28,791 +2, % 3% 29% CRRT Others Copyright 2018 NIKKISO CO., LTD. All rights reserved. 11

12 Financial forecast for Consolidated Performance FY2017 Actual record Performance forecast YoY comparison Change Change rate Orders 140, , , % Revenue 140, , , % Operating profit 8,718 10,000 +1, % Operating margin 6.2% 6.2% Profit before tax 8,310 9, % Pretax profit margin 5.9% 5.6% attributable to owners of the company Profit for the year 5,182 5, % Profit margin attributable to owners of the company 3.7% 3.6% Average/Forecast Against the US dollar (Yen) Against the euro (Yen) Forex sensitivity for (When yen was depreciated by 1 yen) US dollar (Yen) Euro (Yen) Revenue +460 million yen Revenue +390 million yen Operating profit +80 million yen Operating profit +50 million yen Copyright 2018 NIKKISO CO., LTD. All rights reserved. 12

13 Financial forecast for Performance by Business Segment Industrial Business Industrial Division Precision Equipment Division Aerospace Division FY2017 Actual record Performance forecast YoY comparison Change Change rate Orders 85, , , % Revenue 85, , , % Operating profit 7,539 7, % Operating margin 8.8% 7.8% Orders 58,827 72, , % Revenue 59,715 71, , % Orders 10,731 11, % Revenue 9,843 11,600 +1, % Orders 15,712 17,000 +1, % Revenue 15,550 17,000 +1, % Orders 55,005 60,100 +5, % Medical Business Revenue 55,684 60,200 +4, % Operating profit 3,950 5,800 +1, % Operating margin 7.1% 9.6% Corporate expenses, etc. Operating profit 2,771 3, Copyright 2018 NIKKISO CO., LTD. All rights reserved. 13

14 Appendix

15 +474 Orders Analysis (vs FY2017 Q2) FY2017 Q2 (Jan.2017-Jun.2018) Orders 64,547 < Industrial and Precision Equipment > Simple increase +14,899 Impact of FX Increase in LEWA due to improved market conditions Increase in new warm isostatic laminators Joining of CI group (+9,446) Simple increase < Aerospace > Impact of FX Increase in products from Vietnam Simple increase < Medical > Impact of FX +3, Recovery of demand for hemodialysis equipment and growth of disposables sales in domestic market Strong performance of overseas hemodialysis business Sales growth of CRRT business in the mainstay Chinese market Q2 (Jan.2018-Jun.2018) Orders 84,730 Copyright 2018 NIKKISO CO., LTD. All rights reserved. 15

16 Revenue Analysis (vs FY2017 Q2) FY2017 Q2 (Jan.2017-Jun.2017) Revenue < Industrial and Precision Equipment > Simple increase +9,155 Impact of FX +771 Simple increase +680 < Aerospace > Impact of FX 244 Shipment growth from Vietnam Hanoi First Plant Simple increase +1,883 < Medical > Impact of FX +421 Recovery of demand for hemodialysis equipment and growth of disposables sales in domestic market Q2 (Jan.2018-Jun.2018) Revenue 75,578 62,910 Strong performance of overseas hemodialysis business Strong performance in the domestic pump business Joining of CI group (+7,289) Sales growth of CRRT business in the mainstay Chinese market Copyright 2018 NIKKISO CO., LTD. All rights reserved. 16

17 Operating profit Analysis (vs FY2017 Q2) < Industrial and Precision Equipment > < Aerospace > < Medical> Increase in corporate expenses, etc Q2 (Jan.2018-Jun.2018) Operating profit 3,168 FY2017 Q2 (Jan.2017-Jun.2017) Operating profit 2,441 Simple increase +197 Impact of FX +0 Strong performance in the domestic pump business Simple decrease 1 Impact of FX 140 Partial decline in cascade demand Cost reductions through in-house parts manufacture Simple increase +245 Impact of FX +102 Growth of domestic and overseas hemodialysis businesses Write-off of temporary expenses for acquisition of CI group Copyright 2018 NIKKISO CO., LTD. All rights reserved. 17

18 Consolidated Statement of Financial Position As of end of December 2017 As of end of June 2018 Amount Composition ratio Amount Composition ratio Change Total assets 244, % 249, % +4,680 Current assets 119, % 124, % +5,796 Cash and cash equivalents 34, % 35, % +1,698 Trade and other receivables 50, % 49, % 736 Inventories 30, % 33, % +3,623 Non-current assets 125, % 124, % 1,116 Property, plant and equipment 38, % 39, % +1,077 Goodwill and Intangible assets 67, % 65, % 2,689 Total assets 167, % 174, % +6,806 Trade and other payables 22, % 23, % +1,102 Bonds and borrowings 122, % 122, % +33 Total equity 76, % 74, % 2,126 Copyright 2018 NIKKISO CO., LTD. All rights reserved. 18

19 Consolidated Statement of Cash Flows FY2017Q2 (Jan.2017-Jun.2017) Q2 (Jan.2018-Jun.2018) Change Cash flows from operating activities 2,634 7,124 +4,490 income before income taxes 2,316 2, Depreciation and amortization 2,394 3, Increase(decrease) of working capital 29 2,740 2,770 Cash flows from investment activities 4,634 4, Purchase of property, plant and equipment 2,227 4,233 2,006 Balance of the transfer/acquisition of business Free cash flows 2,000 2,360 +4,360 Cash flows from financing activities 18, ,986 increase of bank loan 18,956 1,095 17,860 Cash dividends paid Cash and cash equivalents at the end of year 42,092 35,794 6,297 Copyright 2018 NIKKISO CO., LTD. All rights reserved. 19

20 Revenue Composition Ratio by Region Nikkiso group total Revenue trend by overseas region Others 3% Asia North America Europe Other Overseas revenue ratio (right axis) North Europe 19% Q2 Japan 38% America 17% Asia 23% Overseas revenue ratio 62% JGAPP (9months) IFRS Industrial and Precision Equipment Aerospace Medical 28% 17% 3% Q2 20% 32% 78% 2% Q2 13% 7% 1% 11% 3% 16% Q2 69% Japan Asia North America Europe Other Copyright 2018 NIKKISO CO., LTD. All rights reserved. 20

21 Breakdown of forex sensitivity When yen was depreciated by 1 yen Against the US dollar Performance forecast Against the euro Industrial Division/ Precision Equipment Division Revenue Operating profit Revenue Operating profit Aerospace Division Medical Division Total Average/Forecast (Yen) Copyright 2018 NIKKISO CO., LTD. All rights reserved. 21

22 Financial data IFRS FY IFRS - FY IFRS - Earnings per share (Basic) yen yen Return on equity (ROE) 7.2% 7.3% Return on asset (ROA) 3.8% 3.9% Operating margin 6.2% 6.2% Equity ratio 37.4% 30.7% Debt/equity ratio 1.05 times 1.63 times FY IFRS - FY IFRS - Capital expenditure 7,635 7,508 Research and development expenditure 1,679 2,435 Depreciation and amortization 4,766 5,246 Copyright 2018 NIKKISO CO., LTD. All rights reserved. 22

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