Financial Results for FY2018 3Q

Transcription

1 Financial Results for FY218 3Q 218 OSG Corporation October, 218 OSG Corporation

2 Contents Operating Income with graphics OSG at a glance Overseas sales ratio Financial summary Net sales by product segment Review B/S overview Sales to Customer Forecast for FY218 Sales to Customer with graphics Expansion of overseas business Operating Income Appx.1 Selected financial data 218 OSG Corporation 1

3 OSG at a glance 1. Products Consumable cutting tools used in machine tools Taps account for a 3% market share (world leader) 2. Strengths High-value cutting tools Excellent after-sales service End mill A global sales & service network across 33 countries 3. Dividend policy Maintain over 3% payout ratio (consolidated) 4. Growth strategies Major end-users Catalogue item sales M&A Tools to shape metal Tools to form threads Rolling dies Tools to cut threads Tap Tools to make holes Drill Tools to shape metal Indexable tools Note regarding forecast This material includes forward-looking statements based on information available at the time of release. The forecasts and other forward-looking statements are not guarantees of future performance. Actual financial results may differ from the above forecasts due to known and unknown risks, uncertainties, and other factors. 218 OSG Corporation 2

4 Financial summary -3Q -3Q Change fcst. Annual Progress rate Net Sales 88,281 97, % 13, 75% Operating Profit 13,968 17, % 23, 75% OPM 15.8% 17.7% % - Ordinary Profit 14,8 17, % 23, 75% Net Profit Attributable to OSG 9,315 1, % 14,5 76% EPS(yen) % % *A part of the financial summary has been revised. 4, 35, 3, 25, 2, 15, 1, 5, Net sales 7, 6, 5, 4, 3, 2, 1, Operating profit 7, 6, 5, 4, 3, 2, 1, Ordinary profit 5, 4, 3, 2, 1, Net profit 218 OSG Corporation 3

5 Review Net sales, net profits, ordinary profits and operating profits reached record high for the third quarter in FY218. Sales have increased against a background of orders received in June and July Net sales, net profits, ordinary profits and operating profits have reached the highest-ever level. We are expanding further production capacity. Review by region Japan Both domestic and overseas sales are looking good. Our factories continue to be in full operation. The Americas The U.S. has performed well at aerospace and general engineering industry. Increased production in Brazil had a good influence on a larger profit. Europe/Africa Germany, France, Italy and Eastern Europe are showing great performance uninterruptedly. The companies that we merged have contributed to profits. Asia There is a great demand in China and Taiwan. India and Thailand has been playing a major role in operating income in Asia. Index(-3Q) EBITDA 23.9 billion yen (increased by 18.3% over the same period of the previous year) EBITDA margin 24.6% (1.6pt increase from the same period of the previous year) Equity ratio 71.4% (1.9pt increase from the end of FY217) Capital Investment Results(-3Q) CAPEX 7.7 billion yen (annual forecast of 11. billion yen) Depreciation 6.7 billion yen (annual forecast of 9.5 billion yen) 218 OSG Corporation 4

6 Sales to Customer -3Q -3Q Change Change in local currency Japan 37,63 4,752 3, % - The Americas 15,791 16,793 1,1 +6.3% +9.7% Europe/Africa 13,2 16,336 3, % +19.% Asia 21,659 23,496 1, % +6.9% Consolidated 88,281 97,378 9, % +9.8% 218 OSG Corporation 5

7 Sales to Customer Japan The Americas 16, 14, 12, 1, 8, 6, 4, 13,631 14,9 14,6 14,92 12,752 12,615 12,291 12,653 11,66 11,283 11,76 7, 6, 5, 4, 3, 2, 4,85 4,992 5,4 4,675 5,64 5,369 5,358 5,621 5,225 5,722 5,845 2, 1, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY16 FY16 Europe/Africa Asia 7, 6, 5, 4, 3, 2, 1, 4,976 5,343 5,76 5,286 4,616 4,447 4,136 3,67 3,323 2,778 3,99 1Q 2Q 3Q 4Q 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, 7,371 7,53 7,18 7,179 7,38 6,334 6,61 6,12 6,517 8,235 7,73 1Q 2Q 3Q 4Q FY16 FY OSG Corporation 6

8 Operating Income Area Area -3Q -3Q Change OPM percentage percentage Japan 7, % 8, % % 15.4% The Americas 2, % 2, % % 15.5% Europe/Africa % 1, % % 8.3% Asia 3, % 4, % 1, % 18.% Total 14,345-17,267-2, % 15.% Eliminations Consolidated 13,968-17,262-3, % 17.7% * * Operating profits margin as % of sales (external sales + interarea transfers) 218 OSG Corporation 7

9 Operating Income 4, 3,5 3, 2,5 2, 1,5 1, Japan 3,373 3,45 2,672 2,774 2,782 2,828 2,333 2,141 2,382 2,449 2,214 1,2 1, The Americas Q 2Q 3Q 4Q FY16 1Q 2Q 3Q 4Q FY Europe/Africa ,8 1,6 1,4 1,2 1, 8 6 1,178 1,262 1, Asia 1,688 1,549 1,336 1,375 1,242 1, Q 2Q 3Q 4Q FY16 2 1Q 2Q 3Q 4Q FY OSG Corporation 8

10 Overseas sales ratio -3Q Millions of yen 14, 12, 1, 48.% (4,398) 53.5% (47,272) 54.6% (55,182) 57.8% (64,699) * % represents overseas sales ratio ( ) represents overseas sales amount 55.3% (58,353) 57.6% (69,237) 58.7% (57,126) 6.% Europe/ Africa 16.4% 5.% 4.% Asia 24.9% AM 17.4% Japan 41.3% 8, 3.% 6, 4, 2.% Asia Europe/Africa 2, 1.% The Americas Japan FY12 FY13 FY14 FY15 FY16-3Q.% 218 OSG Corporation 9

11 Net sales by product segment Precision Tools Other Total Q1 Q2 Q3 Q4 3Q Q1 Q2 Q3 3Q Change Taps 8,815 9,656 9,476 1,226 27,949 32% 9,957 1,563 1,381 3,92 32% 2,953 11% End mills 6,546 6,97 6,596 7,4 2,49 23% 6,567 7,254 7,89 2,911 22% 862 4% Drills and Others 7,457 7,983 7,771 8,45 23,212 26% 8,599 9,359 9,415 27,374 28% 4,162 18% Rolling dies 2,363 2,679 2,571 2,63 7,614 9% 2,51 2,787 2,71 7,989 8% 374 5% Gauges ,19 1% ,33 1% 112 9% 25,547 27,63 26,838 28,756 8,16 91% 28,33 3,396 3,51 88,481 91% 8,464 11% Machine 556 1, ,26 2,731 3% ,363 2% % Other 1,912 1,676 1,944 1,899 5,533 6% 2,14 2,337 2,181 6,533 7% 1, 18% 2,468 3,165 2,63 3,159 8,264 9% 2,72 3,273 2,93 8,897 9% 632 8% 28,16 3,796 29,468 31,916 88,281 1% 3,754 33,67 32,954 97,378 1% 9,96 1% Taps End mills Drills and Others Rolling dies 12, 8, 1, 3, 1, 8, 6, 4, 2, 6, 4, 2, 8, 6, 4, 2, 2, 1, 218 OSG Corporation 1

12 B/S overview 17/11E 18/8E Change Cash and time deposits 21,24 2,111-1,93 Receivables 23,961 23, Inventories 34,85 37,66 2,89 Other current assets 4,51 4,93 42 Fixed assets 82,642 83, Total assets 166, ,77 1,994 Total current liabilities 21,826 19,529-2,297 Total long-term liabilities 16,491 16,8-483 Total net assets 128, ,169 4,775 Total liabilities and net assets 166, ,77 1,994 Equity ratio 69.5% 71.4% Receivable turnover period days Inventory turnover period months Cash and time deposits 21,24 2,111-1,93 Debt 16,325 15, Net Cash 4,879 4, , 5, 4, 3, 2, 1, -1, -2, -3, Changes in B/S +4,775 +2, ,93-2,297 Net assets Long-term liabilities Current liabilities Other current assets Fixed assets Inventories Receivables Cash and TD 218 OSG Corporation 11

13 Forecast for FY218 Financial forecast Consolidated Parent company Amount Growth Amount Growth Net Sales 13, +8.2% 59,5 +9.4% Operating profit 23, +2.2% 8, +13.3% as % of sales 17.7% 13.4% Ordinary profit 23, +2.1% 1, % as % of sales 17.7% 17.5% Net profit attributable to OSG 14,5 +3.6% 8, -.6% as % of sales 11.2% 13.4% EPS(yen) CAPEX 11, Depreciation 9,5 Sales 14, 12, 1, 8, 6, Consolidated results Sales O.P. N.P. Profit 35, 3, 25, 2, 15, Exchange rate -3Q result : 1US$=112.23yen 1Euro=124.11yen -3Q result : 1US$=19.56yen 1Euro=13.93yen forecast : 1US$=11.yen 1Euro=13.yen 4, 2, 1, 5, Dividend forecast Dividend per share (yen) Interim Year-end Annual Payout ratio FY % '1 '11 '12 '13 '14 '15 '16 '17 '18 fcst. 218 OSG Corporation 12

14 Expansion of overseas business Headquarters Sales & Manufacturing Locations - Sales Locations 33 countries - Manufacturing Locations 17 countries -Technical Center 7 countries 218 OSG Corporation 13

15 Appx.1 Selected financial data (consolidated) Q Net sales (mil.yen) 97,24 53,325 69,513 8,959 84,83 88,378 11,31 111,917 15,561 12,198 97,378 Sales growth (%) 3% -45% 3% 16% 4% 5% 14% 11% -6% 14% 1% Cost of sales (mil.yen) 6,449 39,23 44,65 48,439 49,381 52,777 58,61 61,865 59,179 69,711 55,128 Gross profit (mil.yen) 36,574 14,122 24,97 32,519 34,72 35,61 42,97 5,51 46,382 5,486 42,25 SG&A expenses (mil.yen) 22,158 16,857 17,383 2,214 2,747 22,774 25,554 28,454 28,135 31,349 24,988 Operating income (mil.yen) 14,416-2,735 7,524 12,35 13,954 12,827 17,415 21,597 18,246 19,137 17,262 Ordinary income (mil.yen) 13,55-2,73 6,699 11,374 13,695 13,91 17,568 21,51 17,813 19,144 17,223 Net income (mil.yen) 7,376-3,769 3,772 5,94 7,138 8,619 9,989 12,518 1,134 13,993 1,979 Margins: Gross profit margin (%) 37.7% 26.5% 35.8% 4.2% 41.3% 4.3% 42.5% 44.7% 43.9% 42.% 43.4% SG&A as % of sales (%) 22.8% 31.6% 25.% 25.% 24.7% 25.8% 25.3% 25.4% 26.7% 26.1% 25.7% Operating income (%) 14.9% -5.1% 1.8% 15.2% 16.6% 14.5% 17.2% 19.3% 17.3% 15.9% 17.7% Ordinary income (%) 13.9% -5.1% 9.6% 14.% 16.3% 15.7% 17.4% 19.2% 16.9% 15.9% 17.7% Net income (%) 7.6% -7.1% 5.4% 7.3% 8.5% 9.8% 9.9% 11.2% 9.6% 11.6% 11.3% Average FX rate: 1USD (yen) Average FX rate: 1Euro (yen) Total assets (mil.yen) 122, ,382 15,635 14, , ,53 142,32 155, ,81 166, ,77 Total shareholders' equity (mil.yen) 64,251 55,931 57,117 59,367 64,482 8,24 91,458 12,566 92, ,81 12,51 Per share: Net income (yen) Cash diviends (interim) (yen) (fcst) (year end) (yen) (fcst) Total shareholders' equity (yen) , , , ,231.7 Average number of shares (ths) 96,371 96,71 94,969 94,967 94,966 94,963 94,959 94,991 91,64 91,44 97,715 Key financial ratios: ROE (%) 11.5% -6.3% 6.7% 1.1% 11.5% 11.9% 11.7% 12.9% 1.4% 13.5% - Equity ratio (%) 52.5% 49.3% 54.1% 56.9% 53.% 59.5% 64.3% 66.1% 59.1% 69.5% 71.4% Cash flow: Operating CF (mil.yen) 1,653 6,49 14,95 11,344 12,286 16,171 19,688 19,588 16,333 2,82 - Investing CF (mil.yen) 1,678-4,633-5,522-8,195-19,746-2,972-3,119-16,976-16,843-7,566 - Financing CF (mil.yen) -4,5 5,47-15,562-5,855 8,643-9,423-12,813-6, ,137 - Cash flow margin (%) 11.% 11.3% 2.3% 14.% 14.6% 18.3% 19.5% 17.5% 15.5% 17.3% OSG Corporation 14