Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

Transcription

1 Accounts Presentation Meeting November 2012

2 1 Accounts Consolidated Business Report Note: The "first half" referred to in this report indicates the period from April 1 through September 30 of the applicable consolidated accounting year, while the "second half" indicates from October 1 of the same year through March 31 of the following year. (For some overseas subsidiaries, these periods are from January 1 through June 30 and from July 1 through December 31 respectively of the applicable year.)

3 1. Interim Review Highlights of Consolidated Settlement of Accounts Due to increased automobile production, etc., sales rose 4.2% YoY. Our operating income margin improved to 8.8%. 2 FYE 2012 FYE 2013 YoY vs. initial forecast First half figure (actual) First half figure (actual) Increase/decrease (Yen, millions) Increase/decrease Net sales 69,865 72, % -0.3% Operating income 5,567 6, % 10.7% Operating income margin 8.0% 8.8% Ordinary income 5,686 6, % 10.6% Net income for the quarter 3,108 3, % 15.5% First-quarter net income per share (Exchange rates 1US$) (Exchange rates 1EURO) Shareholders' equity ratio 46.2% 45.6% Net D/E ratio Equity capital/total assets Net interest-bearing debt / equity capital Accounts Presentation Meeting

4 2. Interim Review Trend in Quarterly Consolidated Settlement of Accounts Trends in sales and operating income margin (Consolidated) 3 (Yen, 100 millions) 億円 % 7.7 % 7.9 % 8.8 % 9.0 % 8.4 % 9.1 % 8.6 % 6.9 % 7.1 % 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FYE 2011 FYE 2012 FYE % 20% 15% 10% 5% 0% Major exchange rates Full year Full year First half US$ Euro Unit: Yen, 100 millions : Sales : Operating income margin

5 3. Interim Review Analysis of Factors Consolidated Increasing/Decreasing Operating Income 4 First half of FYE 2012 (actual figures) vs. First half of FYE 2013 (actual figures) Increasing factors Decreasing factors 1H FYE 2012 Operating income Sales increase 2.2 billion Labor cost increase -0.5 billion Other fixed cost increase -0.7 billion Cost of materials -0.1 billion 1H FYE 2013 Operating income 5.5 billion 6.4 billion *Note: The foreign exchange effect was extremely small, so we assumed it to be zero 年 3 月期第 2 四半期決算説明会 Accounts Presentation Meeting

6 4. Interim Review Breakdown by Business Segment Due to increased automobile production, Automotive Parts Operations recorded higher sales and income. Both Power Transmission Units and Components Operations and Materials Handling Systems Operations recorded sales and income declines. (Yen, millions) Chain Operations Power Transmission Units and Components Operations Automotive Parts Operations Materials Handing Systems Operations Other *2 FYE 2012 FYE2013 YoY vs. initial forecast First half figure (actual) First half figure (actual) Increase/decrease Increase/decrease Net sales *1 25,964 25, % -3.1% Operating income 1,819 1, % 13.1% O perating income margin 7.0% 7.7% Net sales *1 10,957 10, % -4.7% Operating income 1,379 1, % -10.9% O perating income margin 12.6% 10.2% Net sales *1 19,858 24, % 3.8% Operating income 1,734 3, % 29.3% O perating income margin 8.7% 13.3% Net sales *1 13,141 13, % 0.3% Operating income % -28.5% O perating income margin 2.8% 2.0% Net sales *1 1,297 1, % 0.3% Operating income % 8.2% O perating income margin 4.9% 6.4% 5 *1: Sales figures include internal sales and transfers between segments. *2: "Other" is not a reportable segment.

7 5. Interim Review Overview by Business Segment Trends in sales and operating income margin Chain Operations (Yen, 100 millions) % Power Transmission Units and Components Operations (Yen, 100 millions) % % % 50 5% 50 5% 0 1Q 2Q 3Q 4Q 1Q 2Q 0% 0 1Q 2Q 3Q 4Q 1Q 2Q FYE 2012 FYE 2013 FYE 2012 FYE 2013 <Sales by industry> Sales to the automobile and food & beverage industries were favorable. <Sales by region> Sales in Japan and North America were favorable. Sales in Europe were firm, but declined after conversion into yen. (In local currency, sales grew slightly YoY.) Performance in Asia and Oceania was weak. <Sales by industry> Sales to the automobile industry were favorable. LCD- and semiconductor-related sales were weak. <Sales by region> Performance in China trended upward. Performance in Japan, North America, and Asia was weak. Unit: Yen, 100 millions : Sales : 0% Operating income margin

8 5. Interim Review Overview by Business Segment Trends in sales and operating income margin Automotive Parts Operations Materials Handling Systems Operations 7 (Yen, 100 millions) % (Yen, 100 millions) % % % 50 5% 50 5% 0 1Q 2Q 3Q 4Q 1Q 2Q 0% Q 2Q 3Q 4Q 1Q 2Q FYE 2012 FYE 2013 FYE 2012 FYE 2013 <Sales by region> Large sales gains were recorded in Japan and North America (partly due to recovery from the Great East Japan Earthquake). In Japan, Eco-car subsidies had a positive effect. In Thailand, increased output by Japanese manufacturers boosted sales. Sales rose in China, but the outlook for Japanese automakers is unclear. Sales in Europe were firm, but declined after conversion into yen. (In local currency, sales grew YoY.) <Sales by industry> Sales of machine tool conveyors and granular material conveyors were favorable. Sales to the distribution industry were favorable. Large-scale projects for the steel industry declined. Unit: Yen, 100 millions : Sales : 0% -5% Operating income margin

9 6. Interim Review Overview by Region Asia and Oceania operations grew on strong performance in automotive parts. Profitability improved greatly in North America and Europe. 8 FYE 2012 FYE 2013 YoY First half figure (actual) First half figure (actual) Increase/decrease Japan Net sales * 53,369 55, % Operating income 3,912 4, % Operating income margin 7.3% 8.1% North America Net sales * 12,708 13, % Operating income 735 1, % Operating income margin 5.8% 7.7% Europe Net sales * 6,332 6, % Operating income % Operating income margin 2.2% 3.6% Asia/Oceania Net sales * 6,873 8, % Operating income % Operating income margin 11.4% 9.5% Other areas Net sales * % Operating income Operating income margin - - Consolidated Net sales * 69,865 72, % Operating income 5,567 6, % Operating income margin 8.0% 8.8% *Sales figures include internal sales and transfers between segments. <Major exchange rates> (Yen, millions) 1H FYE 2012 : US$= 79.75, EURO= , Can$= 81.94, A$= 84.30, THB= 2.70, NT$= 2.75, RMB= 12.53, WON= H FYE 2013 : US$= 79.41, EURO= , Can$= 79.13, A$= 81.30, THB= 2.57, NT$= 2.67, RMB= 12.63, WON= 0.07 <Sales share of each region> Europe 8.3% North America 17.9% Asia/Oceania 10.8% 1H FYE 2013 Japan 63.0% * Sales share figures are calculated from sales to outside clients.

10 7. Interim Review Quarterly Trends by Region Japan 16% North America % % 80 12% % 8% % 20 4% % 0 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 50 Europe FYE 2012 FYE 2013 FYE 2012 FYE % 50 Asia / Oceania 0% 16% 40 12% 40 12% % 8% % 10 4% 0 1Q 2Q 3Q 4Q 1Q 2Q 0% 0 1Q 2Q 3Q 4Q 1Q 2Q 0% FYE 2012 FYE 2013 FYE 2012 FYE 2013 Unit: Yen, 100 millions : Sales : Operating income margin

11 10 Mid-Term Management Plan 2012 Hone the Global-Best strategy

12 1. Hone the 'Global-Best' Strategy 11 Strengthen Overseas Production Centers (From 2010) USA and Netherlands Mayfran Group becomes subsidiary (Materials Handling Systems) :Manufacturing company, etc. :Engineering company :Sales company :Representative office *Note: Power transmission: chain & power transmission products China (Tianjin) - Subsidiary established (Chain) China (Shanghai) Engineering company established (Materials Handling Systems) South Korea - Representative office opened (Power transmission*) Germany Sales company established (Power transmission*, Automotive parts) India - Sales company established (Power transmission*) Germany - KabelSchlepp becomes subsidiary Mexico Subsidiary established (Automotive parts) Vietnam - Representative office opened (Power transmission*) Indonesia Manufacturing company and sales company established (Power transmission*, Materials Handling Systems)

13 2. Acquisition of Mayfran Group 12 Mayfran Overview Headquarters: Established: Number of employees: Business: Cleveland, Ohio, USA 1933 Approximately 870 Manufacture and sale of chip conveyors and scrap conveyors Financial aspect of acquisition Acquisition price: US$85 million Earnings forecast: (FYE 2013; consolidated period = Sep-Dec 2012) Sales: Approx. 4.2 billion Operating income: Approx. 370 million goodwill in this term approx. 300 million = approx. 70 million Goodwill: Approx. 4.4 billion amortized over five years (approx. 900 million/year)

14 2. Acquisition of Mayfran Group 13 Goal and strategy (1) Global development of chip conveyor and scrap conveyor businesses - Construction of a global tri-polar business organization (Asia, US, and Europe) led by Tsubakimoto Chain - A stronger presence in scrap conveyors in the Chinese market Chip conveyor (2) Global-scale strategy in the machine tool industry - Reinforcement of global OEM supply and service system for Japanese machine tool manufacturers (3) Global supply of Tsubaki power transmission products for chip conveyors and scrap conveyors Scrap conveyor (DRY) - Replacement of existing parts with Tsubaki power transmission products Scrap conveyor (WET)

15 2. Acquisition of Mayfran Group 14 Production system for chip conveyors and scrap conveyors Construction of a global tri-polar business organization (Asia, US, and Europe) Tsubakimoto Chain Mayfran Europe (Europe) Tsubakimoto Mayfran (Asia) Mayfran America (USA) 60% 40% 25% 75% 60% 40% Chip conveyor group Scrap conveyor group * Note: Figures inside pie charts show composition by sales. Chart size indicates sales amount.

16 3. Progress at Tsubakimoto Chain (Tianjin) Co., Ltd. 15 Stage of plant start-up Jan 2013: Full operation (planned) Nov 2012: Knockdown production (assembly) partial start Jan 2013: Heat-processing equipment to start operating (planned) Architectural rendition of finished plant Main products and uses Unloader-use conveyor chain Bucket elevator-use conveyor chain Chain scraper-type reclaimer-use Bearing roller conveyor chain

17 16 Full Year Consolidated Settlement of Accounts Forecasts for FYE 2013

18 1. FYE 2013 Consolidated Settlement of Accounts Forecast 17 The unclear outlook for Chinese business and domestic private consumption prompted us to revise our full-term forecast. FYE 2012 Full year figure (actual) First half figure (actual) FYE 2013 Second half forecast Full year forecast YoY Increase/decrease vs. initial forecast Increase/decrease Net sales 144,896 72,773 77, , % 0.0% 4,200 Operating income 12,081 6,419 5,681 12, % -10.4% 70 Operating income margin 8.3% 8.8% 7.4% 8.1% Ordinary income 12,140 6,525 5,575 12, % -9.7% 30 Net income 6,814 3,810 2,990 6, % -11.7% - Net income per share (Exchange rates 1US$) (Exchange rates 1EURO) Dividend per share (yen) *Note: The newly consolidated Mayfran Group is included in forecast consolidated results. The period of consolidation is Sep-Dec (Yen, millions) From newly consolidated Mayfran Group*

19 2. FYE 2013 Settlement of Accounts Forecasts by Business Segment Chain & Power Transmission Operations are expected to record sales and profit declines. Automotive Parts Operations, as well as Materials Handling Systems Operations in the newly consolidated Mayfran, are expected to record sales and profit growth. Chain Operations Power Transmission Units and Components Operations Automotive Parts Operations Materials Handing Systems Operations Other *2 FYE 2012 FYE 2013 YoY vs. initial forecast Full year figure (actual) First half figure (actual) Second half forecast Full year forecast Increase/decrease Increase/decrease Net sales *1 51,692 25,088 24,812 49, % -5.1% 0 Operating income 3,462 1,922 1,008 2, % -22.1% 0 Operating income margin 6.7% 7.7% 4.1% 5.9% Net sales *1 21,364 10,005 10,195 20, % -5.2% 0 Operating income 2,512 1, , % -22.4% 0 Operating income margin 11.8% 10.2% 8.3% 9.2% Net sales *1 43,509 24,396 24,404 48, % -0.8% 0 Operating income 4,846 3,244 2,436 5, % -5.4% 0 Operating income margin 11.1% 13.3% 10.0% 11.6% Net sales *1 27,977 13,135 17,565 30, % 12.9% 4,200 Operating income , % 3.3% 70 Operating income margin 3.1% 2.0% 4.4% 3.4% Net sales *1 2,911 1,435 1,665 3, % 9.2% 0 Operating income % -5.8% 0 Operating income margin 5.9% 6.4% 5.3% 5.8% *1: Sales figures include internal sales and transfers between segments. *2: "Other" is not a reportable segment. *3: The newly consolidated Mayfran Group is included in forecast consolidated results. The period of consolidation is Sep-Dec (Yen, millions) From newly consolidated Mayfran Group *3

20 3. FYE 2013 Analysis of Factors Consolidated Increasing/Decreasing Operating Income 19 FYE 2012 (actual figures) vs. FYE 2013 (forecasts) Increasing factors Decreasing factors FYE 2013 Operating income Sales increase 3.6 billion Cost of materials 0.1 billion Labor cost increase billion Other fixed cost increase billion Foreign exchange effect billion FYE 2013 Operating income 12 billion 12.1 billion

21 4. FYE 2013 Capital Expenditures and Depreciation Expenses Main capital expenditures (1) Construction-related expenses for Chinese (Tianjin) subsidiary s manufacturing plant (Chain Operations) (2) Reinforcement of global production system in Automotive Parts Operations Trends in capital expenditures and depreciation expenses *Note: Figures in parentheses are current-term estimates. H1 FYE2013 results: Capex approx. 5.4 billion, depreciation approx. 3.4 billion (Yen, 億円 100 millions) (72) (140) 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 Capital expenditures (Consolidated) Depreciation expenses (Consolidated) 設備投資 ( 連結 ) 減価償却費 ( 連結 ) (Yen, 100 億円 millions) (FYE) 20

22 This reference document describes our business plans and our earnings outlook. The content of this document is based on current information available to our company and on certain assumptions determined as reasonable. It is not intended to represent a performance commitment. Note that actual results may differ from the earnings outlook described herein, as the results are dependent upon a variety of variables.