Presentation on Business Results for the 1st-Half of Fiscal Year Ending March 31, 2017

Transcription

1 Presentation on Business Results for the 1st-Half of Fiscal Year Ending March 31, 2017 November 17, 2016 This presentation contains forward-looking statements relating to expected future performance as of Nov. 17, Such statements are based on the views and assumptions of company management and involve risks and uncertainties such as changes in the business environment that may cause the actual results to differ materially from expectations.

2 Performance Summary

3 1st-half consolidated results (versus original forecasts for the period) Original forecasts (announced May 13) 1st-half FY ending Mar.31,2017 (millions of yen) Vs. original forecasts for the period Amount Percent (%) Amount Percent (%) Change Rate(%) Net sales 14, , Operating income 4, , Ordinary income 4, , Net income 2, , Net Income refers to net income attributable to owners of parent. 3

4 1st-half consolidated results (year-on-year change) 1st-half FY ended Mar.31,2016 1st-half FY ending Mar.31,2017 (millions of yen) Year-on-year change Amount Percent (%) Amount Percent (%) Change Rate (%) Net sales 13, , Gross profit 6, , Operating income Ordinary income *1 EPS (yen) Capital investment Depreciation 4, , , , , , Net income *2 1,599 1, costs R&D costs *1 Net Income refers to net income attributable to owners of parent. *2 Capital investment amounts are the amounts of tangible and intangible fixed assets acquired in the term. 4

5 Performance of main group companies for 1st-half of fiscal year ending March 31, 2017 Equity stake Amount Net sales Change(%) Net income Amount (millions of yen) Change(%) *2 Harmonic Drive Systems Inc. HD Systems, Inc. (Harmonic Drive L.L.C.) (U.S.A) 100% (51%) - 12, , , Harmonic AD, Inc. 100% 1, *3 *4 Harmonic Drive Systems (Shanghai) Co., Ltd. 100% Harmonic Drive AG (Germany) 36.8% 5, Percent change(%) indicates increase or decrease from same period of previous fiscal year. *1 For overseas subsidiaries and affiliates, the fiscal year ends December 31. *2 Exchange rates: Jan. Jun., US$ = yen, Jan. Jun., US$ = yen *3 Exchange rates: Jan. Jun., CNY = yen, Jan. Jun., US$ = yen *4 Exchange rates: Jan. Jun., = yen, Jan. Jun., = yen *5 Net income of US subsidiaries (consolidated) is after excluding minority interests. 5

6 1st-half non-consolidated results 1st-half FY ended Mar.31,2016 1st-half FY ending Mar.31,2017 (millions of yen) Year-on-year change Amount Percent(%) Amount Percent(%) Change Rate(%) Net sales 11, , Gross profit 5, , Operating Ordinary income EPS (yen) Capital 1,153 1,418 investment Depreciation 2, , , income , Net income 2, , *1 526 costs R&D costs *1 Capital investment amounts are the amounts of tangible and intangible fixed assets acquired in the term. 6

7 Net sales by application (non-consolidated) (millions of yen) 12,000 10,000 8,000 6,000 4,000 2, ,089 1, ,907 9,494 1, ,149 11,366 11,663 11,848 1,812 2,098 2, , ,892 2, ,098 4,843 4,671 5,308 2, , ,021 1,207 1,063 1,081 1,317 1,349 1,383 1st-halh 2nd-halh 1st-halh 2nd-halh 1st-halh 2nd-halh 1st-halh FY ended Mar.31,2014 FY ended Mar.31,2015 FY ended Mar.31,2016 Semiconductor equipment Flat panel equipment Robotics Gearbox for motor manufactures Machine tools Printing machines Optical devices Transporter Measuring machines Excavation system for the oil, etc. Others 12, FY ending Mar.31,2017 7

8 Factors in year-on-year change in 1st-half non-consolidated operating income 2,988 Higher income +554 Lower marginal profit ratio, etc. Higher fixed 16 manufacturing costs, etc. 264 Higher SG&A 82 (millions of yen) 3,180 1st-half of FY ended March 31, st-half of FY ending March 31,

9 Status of consolidated assets (millions of yen) 50,000 48,749 51,101 40,000 12,907 13,666 Cash & bank deposits and securities 30,000 20,000 10,000 8,397 8,563 1, , ,807 10, ,837 15,605 Trade receivables Inventories Other current assets Tangible fixed assets Intangible fixed assets Investments and other assets 0 March 31, 2016 September 30,2016 9

10 Status of consolidated liabilities and net assets 50,000 40,000 48,749 2,308 3, ,273 1,769 51,101 2,314 3, ,534 1,668 Trade payable Other current liabilities Long and short-term borrowings Other fixed liabilities Minority interests 30,000 20,000 10,000 37,122 38,987 Equity ratio 76.1% Owned capital Equity ratio 76.3% 0 March 31, 2016 September 30,

11 Status of consolidated cash flows (millions of yen) 1st-half of FY ended Mar.31,2016 1st-half of FY ending Mar.31,2017 Cash flow from operating activities 2,938 3,382 Cash flow from investing activities 1,795 1,033 Cash flow from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at end of year 10,645 11,396 11

12 Performance Forecast for Fiscal Year Ending March 31, 2017

13 Revised consolidated results forecast for fiscal year ending March 31, 2017 Original forecasts (announced May 13) Revised forecasts (announced Nov. 4) (millions of yen) Vs. original forecasts Amount Percent (%) Amount Percent (%) Change Rate (%) Net sales 30, , Operating income 8, , Ordinary income 8, , *1 Net income 6, , *1 Assumed exchange rate for FY17/3 forecasts 1USD = EUR = CNY = *2 Net income refers to net income attributable to owners of parent. 13

14 Revised non-consolidated results forecast for fiscal year ending March 31, 2017 (millions of yen) Original forecasts (announced May 13) Revised forecasts (announced Nov. 4) Vs. original forecasts Amount Percent (%) Amount Percent (%) Change Rate (%) Net sales 25, , Operating income 6, , Ordinary income 6, , Net income 4, , Assumed exchange rate for FY17/3 forecasts 1USD = EUR = CNY =

15 Consolidated performance forecast for fiscal year ending March 31, 2017 FY ended Mar. 31, 2016 Forecasts FY ending Mar. 31, 2017 (millions of yen) Year-on-year change Amount Percent (%) Amount Percent (%) Change Rate (%) Net sales 28, , , Operating income 7, , Ordinary income 7, , *1 Net income 5, , EPS (yen) Capital investment 4,296-4, Depreciation 1,524-1,780 - costs R&D costs 1,404-1, *1 Net income refers to net income attributable to owners of parent. *2 Assumed exchange rate for FY ending Mar.31, 2017 forecasts 1US$ = = CNY=

16 Forecasts of main group companies for fiscal year ending March 31, 2017 (millions of yen) Equity stake Amount Net sales Year-on-year change (%) Amount Net income Year-on-year change (%) Harmonic Drive Systems Inc. - 26, , HD Systems, Inc. (Harmonic Drive L.L.C) (U.S.A) Harmonic AD, Inc. 100% 2, Harmonic Drive AG (Germany) 100% (51%) 4, Harmonic Drive Systems (Shanghai) Co., Ltd. 100% 2, % 10, , Percent change(%) indicates increase or decrease from same period of previous fiscal year. *1 Exchange rates: Jan. Dec., US$ = yen, Jan. Dec., 2016 forecast 1US$ = yen *2 Exchange rates: Jan. Dec., CHY = yen, Jan. Dec., 2016 forecast 1CYN = yen *3 Exchange rates: Jan. Dec., = yen, Jan. Dec., 2016 forecast 1 = yen *4 Net income of US subsidiaries (consolidated) is after excluding minority interests. *5 For overseas subsidiaries and affiliates, the fiscal year ends December

17 Non-Consolidated performance forecast for fiscal year ending March 31, 2017 (millions of yen) FY2016/3 FY2017/3 forecasts Year-on-year change Amount Percent (%) Amount Percent (%) Change Rate (%) Net sales 23, , , Operating income Ordinary income Net income EPS (yen) Capital 5, , , , , , ,462-3, investment Depreciation 898 costs - 1, R&D costs 1,395-1, Assumed exchange rate for FY17/3 forecasts 1USD = EUR = CNY =

18 Sales trend line (non-consolidated) (millions of yen) 25,000 Four-year average 20,378 mil. yen 23,029 23,740 forecast 26,300 20,000 15,000 16,159 7,478 18,584 9,494 11,663 11,892 13,456 10,000 5,000 8,680 9,089 11,366 11,848 12,843 0 FY ended Mar. 31,2013 FY ended Mar. 31,2014 FY ended Mar. 31,2015 FY ending Mar. 31,2016 forecast FY ending Mar. 31,2017 forecast 1st-half 2nd-half 18

19 Sales trend line by product (non-consolidated) (millions of yen) Four-year average 20,378mil. yen 23,029 23,740 26,300 Mechatronics 16,159 18,584 Planetary Gear HarmonicDrive 19

20 Non-consolidated bookings by application (quarterly) (millions of yen) 7,000 6,000 5,000 4,000 3,000 2,000 1, ,310 1, ,089 4,678 1, ,633 6,492 1, ,234 6,927 1, ,457 6,449 1, ,141 5,964 1, , Q 2Q 3Q 4Q 1Q 2Q FY ended Mar. 31, 2016 FY ending Mar. 31, 2017 Semiconductor equipment Flat panel equipment Robotics Gearbox for motor manufactures Machine tools Printing machines Optical devices Transporter Measuring machines Excavation systems for the oil, etc. Others 20 20

21 12,000 10,000 Non-consolidated net sales by application (premise for 2nd-half forecasts) (millions of yen) 14,000 8,000 6,000 4,000 11,633 11,848 2, , ,230 2, , ,843 4,671 5,308 12,843 2, ,215 forecast 13,456 2, ,400 2, ,000 1,081 1,317 1,349 1,383 1, nd-half 1st-half 2nd-half 1st-half 2nd-half forcast FY ended Mar.31,2015 FY ended Mar.31,2016 FY ending Mar.31,2017 Semiconductor equipment Flat panel equipment Robotics Gearbox for motor manufactures Machine tools Printing machines Optical devices Transporter Measuring machines Excavation system for the oil, etc. Others 21

22 Factors in year-on-year change in non-consolidated operating income (fiscal year ending March 31, 2016 forecast) Higher income +1,420 (millions of yen) 5,913 Lower marginal profit ratio, etc. 50 Higher fixed manufacturing costs, etc. 450 Higher SG&A costs 283 6,550 FY ended Mar. 31, 2016 FY ending Mar. 31, 2017 forecast 22

23 Trends in operating income (non-consolidated) (millions of yen) (%) 7,000 6, forecast , ,000 3,000 5,975 5,913 6,550 2,000 1,000 2,955 4, FY ended Mar. 31,2013 FY ended Mar. 31,2014 FY ended Mar. 31,2015 FY ending Mar. 31,2016 FY ending Mar. 31, Operating income Operating income margin (%) 23

24 Future Outlook

25 Realizing our Long-Term Vision Provision of platforms for sales, R&D, and production Platform provision (100 mil. yen) Sales Production network R&D 50th anniversary of founding 500 (Target net sales) (Actual net sales) (282) Previous Mid-term Management Plan Current Mid-term Management Plan Long-Term Vision FY2012 FY2014 FY2015 FY2017 FY2018 FY

26 Sales: Trends in Main Application Fields (1) Industrial robots Provide high added value (load capacity, speed) Fusion of robots with AI and big data (IoT) Handle welding, heavy lifting, high-precision tasks Advances in sensors enabling application to flexible manufacturing 26

27 Sales: Trends in Main Application Fields (2) Co-bots Low added value tasks Expanding collaboration between people and robots Replacing people with robots Collaboration between people and robots Typical usage areas Car manufacturing Manufacturing of electronic equipment and devices Food service industry Manufacturing of cosmetics, pharmaceuticals, and food Home appliance manufacturer examples: Robots replacing people for cell production 27

28 Sales: Trends in Main Application Fields (3) Semiconductor manufacturing equipment On the way to the trillion-sensor era Expansion of investment in 3D (stacked) semiconductors Acceleration of development of latest miniaturization techniques Semiconductor manufacturing equipment (100 million sensors) 1,600 World outlook for sensor demand (quantity) 1,522 1, Source: JEITA (Japan Electronics & Information Technology Industries Association) 28

29 Sales: Trends in Main Application Fields (4) Other In-vehicle Space Medical equipment In-vehicle Communication Satellites 29

30 Sales (Asian Market) Taiwan Representative Office established Electronic parts, semiconductors, EMS and other industries are flourishing Markets for robots, semiconductor manufacturing equipment, machine tools and other factory automation products are also expanding New robot manufacturers, and makers of built-in EMS robots and collaborative robots, are growing Industrial robot supply trends in Taiwan Harmonic Drive Systems (Shanghai) Co., Ltd. Chongqing Shenzen Shanghai SAMICK ADM Daegu Taipei Taiwan Representative Office Azumino Harmonic Drive Systems Inc. Source: IFRS WR Industrial Robots

31 Production: Worldwide Production Network Harmonic Drive AG Location: Limburg, Lahn, Germany Production scale: 10,000 units/month Germany South Korea Japan USA Harmonic Drive LLC Location: Massachusetts, USA Production scale: 4,000 units/month Japan Domestic SAMICK ADM Co., Ltd. Location: Daegu, South Korea Production scale: 1,000 units/month Harmonic Drive Systems Inc. Harmonic AD, Inc. Harmonic Precision Inc. Winbel Co., Ltd. Production scale: 50,000 units/month 31

32 Production: Further expansion in production capacity to 80,000 units/month Completion of new plant building Musser West building, added in 2016 Existing Musser East building 32

33 Production: Crossed roller bearings Harmonic Precision Inc. Location: Matsumoto-shi, Nagano Employees: 118 (including temporary staff) (as of March 31, 2016) Crossed roller bearings Internal structure of unit product Crossed roller bearing Crossed roller bearings (CRB) are bearings using cylindrical rollers. Features Compact shape Large load capacity High strength at all angles Standard in HarmonicDrive unit products, planetary speed reducers, and mechatronics (MT) actuators 33

34 Production: Capacity expansion for crossed roller bearings (units/ month) 20,449 Rise in products incorporating crossed roller bearings (units sold) 23,836 32,591 35,628 (FY) Production capacity (units/ month) 100,000 Plans for expanding crossed roller bearings production capacity 80,000 60,000 Current 38, (FY) 34

35 Research and Development: The Total Motion Control Ecosystem Cloud Big Data/AI Fog Total Motion Control Concept ICT Sensors Speed reducers Software Controllers Motors New materials Other elements Drivers IoT Power supplies/ battery charge 35

36 Research and Development: Deepening of R&D HarmonicDrive fundamental/applied research Lubricating materials Stress analysis Tiny 5 mm-diameter HarmonicDrive Development of applications Space Medical equipment In-vehicle Service robots Surgical robot Service robot 36

37 Research and Development: Deepening of R&D Silicon Valley office established Gateway to latest robotics technologies Joint research with SRI*: Abacus drive (pure rolling cycloid) Joint research with other US research institutions and universities *Stanford Research Institute Abacus drive (pure rolling cycloid) Advantages of the Abacus drive High energy efficiency (low loss) Low reduction ratio region (complementary with strain wave gearing devices) Few parts 37

38 Product Position Precision General industrial equipment Abacus Conveying equipment, processing equipment, etc. Positioning with a certain degree of accuracy Precision planetary speed reducers Robots, semiconductor manufacturing equipment High precision positioning Abacus Focus on power Abacus Price 38

39 Our Growth Trajectory (100 mil. yen) Net sales (non-consolidated) Achieved highest ever net sales Co-bots, professional robots, etc. Leading-edge medical equipment Flat panel displays Applications driving growth Machine tools Semiconductor manufacturing equipment Industrial robots (further expand) (FY) Customer needs Large hollow Extreme flatness Extreme compactness High precision High torque, long life Extreme lightness Lower cost Stay on top of trends of the times, such as Industry 4.0 and IoT 39

40 The performance targets and other numerical data presented herein are forecasts based on information available to the HDS Group at the time this material was prepared, and are subject to the influence of uncertainties including those in the economic and competitive environment. Actual performance may therefore differ materially from the forecasts given in this material. For more information: Please contact us as follows for material contents and investor information of all kinds. Corporate Planning and Finance Division, Harmonic Drive Systems Inc. Ichigo Omori bldg. 7F, Minami-Oi, Shinagawa-ku, Tokyo Japan Website: