Business Results for the Third Quarter ended December 31, 2013

Transcription

1 Business Results for the Third Quarter ended December 31, 2013 January 28, 2014 Hitachi Construction Machinery Co., Ltd. Hitachi Construction Machinery Co., Ltd All rights reserved.

2 Business Results for the Third Quarter ended December, 2013 The external appearance of the factory building of Hitachi Construction Machinery Eurasia Manufacturing LLC, which obtained operation permit.

3 I. Summary of Consolidated Results 1 Total net sales increased compared to the previous year due to sales increase in Japan/China and favorable currency exchange rate, although there was a billion yen impact due to the exclusion of TCM from the consolidated results, and decrease in mining sales. Operating Income, Ordinary Income and Net Income increased compared to the previous year. Apr 1~Dec 31 of FY 2013 Apr 1~Dec 31 of FY 2012 change Net Sales % Operating Income % Ordinary Income % Net Income F X Exchange rate (YEN/USD) Exchange rate (YEN/EUR) Exchange rate (YEN/RMB) %

4 Summary of Consolidated Results 2 Total net sales increased compared to the previous year due to sales increase in Japan/China and favorable currency exchange rate, although mining sales decreased. Operating Income, Ordinary Income and Net Income increased compared to the previous year. Oct 1~Dec 31 Oct 1~Dec 31 of FY 2013 of FY 2012 increase (decrease) amount % Net Sales (8.3%) (4.2%) Operating Income (8.4%) (3.4%) Ordinary Income (3.5%) ( - ) Net Income (Loss) F X Exchange rate (YEN/USD) Exchange rate (YEN/EUR) Exchange rate (YEN/RMB) % 106% 154% -

5 Sales by Geographic Region (Consolidated) 3 Sales in China increased by 21.9 billion yen [139%] year on year. Sales in Japan also increased 33.6 billion yen [126%] considering the influence of the exclusion of TCM [9.7 billion yen] from the consolidated result. On the other hand, sales in Asia and Oceania decreased by 23.9 billion yen [87%] year on year. Overseas Sales Ratio 71% Russia, CIS, Middle East and Africa 10% Europe 9% Overseas Sales Ratio 75% The Americas 10% Russia, CIS, Middle East and Africa 9% Europe 7% The Americas 16% China 14% (Apr 1-Dec 31) Actual bil.yen China 10% 28% FY12 (Apr 1-Dec 31) Actual Japan 29% Asia & Oceania Japan 25% bil.yen Asia & Oceania 33% % % FY12 (Apr 1-Dec 31) Actual 139% 118% 118% 65% 87% 117% year on year change (Apr 1-Dec 31) Actual China Russia CIS Middle East Africa Europe The Americas Asia & Oceania Japan

6 Mining/Parts & Service Sales (Actual) 4 Mining 21% 18% (notes) % shows the percentage of the total sales of the company as a whole [9%] [%] shows the change ratio from the same period of % the previous year. 15% 18% [18%] 16% 86.8 [-26%] 17% 30.8 [-3%] [-37%] [-50%] [-14%] 16% 29.2 [-13%] [-29%] [ 6%] 15% 26.8 [-25%] [-52%] [12%] [-45%] [ 0%] Parts & Service 20% 21% 17% % % [-2%] 22% [ 4%] [-1%] 23% 22% 23% [ 6%] 42.4 [-3%] [-6%] 40.3 [ 8%] 42.1 [10%] [ - ] [-14%] [10%] [ 6%] [ 9%] [12%] [ 0%]

7 Consolidated Statements of Income 5 increase (decrease) amount % Net Sales % Cost of Sales (71.3%) SGA Expenses (21.5%) Operating Income (7.2%) 40.2 (74.4%) (20.5%) (5.1%) % % % Non-operating Income(Loss) % Ordinary Income (5.8%) 32.1 (3.6%) % Extraordinary Income % Income Taxes % Minority Interests % Net Income (3.1%) 17.1 Apr 1 - Dec 31 Apr 1 - Dec 31 of FY 2013 of FY 2012 (2.3%) %

8 Summary of Quarterly Consolidated Sales and Operating Income (ratio) 6 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Sales Operating income/loss round off per quarter % 10.3% 6.6% Net Sales Operating Profit and loss ratio 2.4% 9.3% 2.6% 4.5% 8.6% 7.7% 5.7% 6.5% 6.1% 4.7% 10.6% 6.6% 5.1% 4.4% 4.2% 12.0% 10.0% 8.3% 8.3% 8.0% 6.0% 4.0% % -1.8% 0.6% 表入れる 2.0% 0.0% -2.0% % -6.0% 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2008 FY2009 FY2010 FY2011 FY2012 FY % EX rate/ FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 quarter 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q US$ EUR RMB

9 Consolidated Non-operating Income (Actual) 7 Apr 1 - Dec 31 FY2013 Apr 1 - Dec 31 FY2012 change Dividends/Interest income and expenses Gain or loses on equity earnings of affiliated companies Foreign exchange gains, net Others Total

10 Consolidated Statements of Income 8 Apr 1 - Dec 31 Apr 1 - Dec 31 increase (decrease) of FY 2013 of FY 2012 amount % Net Sales % Cost of Sales (71.3%) (74.4%) % SGA Expenses (21.5%) (20.5%) % Operating Income (7.2%) 40.2 (5.1%) % Non-operating Income(Loss) % Ordinary Income (5.8%) 32.1 (3.6%) % Extraordinary Income % Income Taxes % Minority Interests % Net Income (3.1%) 17.1 (2.3%) %

11 Comparison of Consolidated Profit & Loss (Actual) 9 Total profit increased 12.3 billion yen due to 23.7 billion yen from JPY depreciation and 11.6 billion yen from improvement of sales price and material cost, although sales volume decreased by 21.7 billion yen. (Billions of Yen) Ordinary Income FY12 1Q-3Q Act Sales Volume Decrease 2.5 Price Increase 23.7 Foreign Exchange Gains Material Cost Down Overhead Cost Up Others (Mix Account) 32.1 Ordinary Income 1Q-3Q Act 1 Overhead Cost: include foreign exchange loss Net Income FY12 1Q-3Q Act Ordinary Income Extraordinary Loss -1.4 Corporate Tax, etc Net Income 1Q-3Q Act

12 Consolidated Balance Sheet 10 Account receivable (notes and accounts receivables, lease receivables and investment assets) decreased by 37.8 billion yen from the end of last fiscal year. Inventory increased by 39.9 billion yen from preparation of stocks for post-chinese New Year demand increase, temporary increase in parts and the impact of currency exchange rate fluctuations. (A) - 3Q (B) FY 12 (C) FY12-3Q (A-B) change (D) - 3Q (E) FY 12 (F) FY12-3Q Cash and bank deposit Notes and accounts payable Accounts receivable Others Inventories Total current liabilities Others Total non-current liabilities (D-E) change Total liabillities Total current assets Minority interests Property, plant and equipment Common stock, capital surplus, and retained earnings Intangible assets Others Others (Shareholder's equity ratio) (33.7%) (32.8%) (31.2%) (0.8%) Total fixed assets Total net assets Total assets 1, , , Total liabilities and net assets 1, , , Inventories by products Unit (35.0%) (35.7%) (36.7%) (-0.8%) Parts Interest-bearing debt Others Cash and Cash equivalents Total inventories (Deposit) (1.1) (5.4) (17.0) (-4.3) On hand days(divided by net sales) (Days) Interest-bearing debt, net (28.7%) (29.6%) (29.2%) (-0.9%) Accounts receivable Debt Inventories Notes and accounts payable Net D/E Ratio Net working capital

13 Consolidated Cash Flows 11 Cash flow from operating activities increased 31.6 billion yen year on year to 72.2 billion yen. Free cash flow was positive 41.9 billion yen. Apr 1- Dec 31 of FY 2013 Apr 1- Dec 31 of FY 2012 change Income before income taxes and minority interest Depreciation and amortization (Increase)decrease in accounts receivable (15.6) (Increase)decrease in inventories (24.7) (50.1) 25.4 (Increase)decrease in notes and accounts payable 33.9 (7.0) 8.7 (22.4) Income taxes paid (17.4) (19.1) 1.7 Ohters, net (6.4) (4.0) (2.4) Net cash provided by (used in) operating activities Cash flow margin for operating activities 12.9% 7.3% 5.6% Net cash provided by (used in) investing activities (30.3) (22.2) (8.1) Free cash flows

14 II. Consolidated Earnings Forecast 12 In Japan, in addition to rehabilitation demand, demand for rental service continued to increase strongly, and it is expected to increase by 38% year on year to 39,000 units. Because demand in China has been in recovery trend, the forecast is increased by 3,000 units, resulted as an 29% increase year on year to 54,000 units from the previous forecast. Global forecast is decreased by 3,000 units from the previous forecast, resulted as a 7% decrease year on year after reflecting decrease in the demand of Asia and Oceania. Global demand trend for Hydraulic Excavator *Estimates by HCM *Excluding Chinese manufacturer (Distributing, copying, or forwarding is prohibited) Thousands Units ' act. Year-on-year Change % -2% Japan 8% 7% W Europe % Total N America 225 China % Others 179-6% 17% % 17% % Asia& % Oceania % 18% 17% Asia & Oceania 10% % China Russia, 24 19% E Eeurope, % 25% 30 50% 32% North CIS % America % 11% % 19 12% Western 50 8% % Europe 26 6% % 12% 12% % % 10% Japan 0 7% 6% 10% 14% 17% 18% '05 '06 '07 '08 '09 '10 '11 '12 '13 '13 Previous Forecast Latest Forecast Year on year change by region '13 Previous Forecast '13 Latest forecast +25% +34% +38% -7% +2% +3% +26% +0% +0% -41% +21% +29% India -21% -22% -24% Indonesia -19% -27% -27% Others +9% +2% -12% -8% -11% -19% -3% +8% +1% Africa +39% -9% -9% Middle East -2% +0% -3% Latin America -4% +13% -10% Others Total +2% +5% -5% -10% +8% +7%

15 Summary of Consolidated Earnings Forecast 13 Sales increase in Japan/China and the impact of currency exchange rate fluctuation will offset the decrease in mining sales. Therefore, the current forecast is unchanged from the previous forecast. FY2013 Forecast FY2012 Actual change (830.0) Net Sales % (83.0) Operating Income % (69.0) Ordinary Income % (37.0) Net Income % USD ( 96.9) F EUR (127.1) X RMB ( 15.8) Cash dividends per share (yen) 50 (note) ( ) Previous forecast as of October Exchange rate of -Q4 *(previous) Yen / US$ (95.0) Yen / EURO (125.0) Yen / RMB 17.0 (15.6) 10

16 Sales by Geographic Region 14 Overseas sales ratio : 72% Russia, CIS, Middle East and Africa Europe China The Americas Latest forecast bil. yen FY12 Japan Asia & Oceania Overseas sales ratio : 75% Russia, CIS, Middle East and Africa (Note) year on year change FY12 Actual % 107% 133% 122% 131% Europe Actual % bil. yen The Americas China Japan Russia, CIS, Middle East and Africa Asia & Oceania Overseas sales ratio : 73% China Previous forecast Europe bil. yen The Americas Japan Asia & Oceania 71% 96% Previous Forecast 107% 140% 114% 129% 70% 94% 122% Latest Forecast China Russia CIS M. East Africa Europe The Americas Asia & Oceania Japan

17 Mining/Parts & Service Sales (Forecast) 15 Mining 15% 18% % % % % (notes) % shows the percentage of the total sales of the company as a whole. [%] shows the change ratio from the same period of the previous year. [-11%] 15% [-21%] [-21%] [-36%] 16% 86.8 [-26%] [ 3%] [ 0%] [-45%] [ 0%] 15% 41.7 [ -8%] [-12%] [ -2%] Parts & Service 18% 17% 20% % 21% % 20% [5%] [6%] [3%] [5%] 22% [4%] [6%] 16% 42.7 [-6%] [3%] [0%] [0%] [ -9%] [-2%]

18 Comparison of Consolidated Profit & Loss (Forecast) 16 Forecast is unchanged from the previous forecast, as foreign currency exchange gain and material cost down offset decrease in mining sales Ordinary Income FY12 Actual ( -5.1 ) -8.3 Sales Volume Decrease ( 2.4 ) 2.8 Price Increase ( -6.1 ) ( 11.4 ) 1 ( 4.2 ) ( 25.8 ) Foreign Exchange Gains Material Cost Down 2 Overhead Cost Up Others(Mix Account) * ( ) is forecast announced in October, Ordinary Income Forecast 1 include foreign exchange loss include foreign exchange loss include model mix due to mining decrease Net Income FY12 Actual parts and service Ordinary Income Extraordinary Loss -7.7 Corporate Tax, etc Net Income Forecast

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