Mission: Engineering for Sustainable Growth of the Global Community Vision: Global Leading Engineering Partner Values: Integrity, Creativity, Diversity, Learning, Team First Quarter of Fiscal Year Ending March 2019 OUTLINE OF FINANCIAL RESULTS August 10, 2018 Toyo Engineering Corporation
Contents Page Performance Summary Performance Summary 3 Net Sales 4 Financial Summary Balance Sheet 5 New Orders New Orders 6 Backlog of Contracts 7 Forecast Forecast for 2019/3 8 2
Performance Summary Decrease in revenue but increase in profit compared with the same period of the previous year 2017/6 2018/6 Difference Forecast 2019/3 Progress Net sales 87.3 78.7 (8.6) 300.0 26% Gross profit 5.7 5.8 0.1 21.0 28% Gross profit margin 6.5% 7.4% 0.9% 7.0% SG&A expenses 5.1 3.9 1.2 19.0 21% Operating income 0.5 1.9 1.4 2.0 95% Operating income margin 0.7% 2.4% 1.7% 0.7% Non-operating income and expenses 1.3 0.5 (0.8) 0.5 100% Ordinary income 1.9 2.4 0.5 2.5 96% Profit attributable to owners of parent 1.0 1.3 0.3 1.0 130% New orders 51.7 33.7 (18.0) 300.0 11% 3
Net sales China 0.8 Central and South America 0.1 North America 19.1 24% 1% 1% 14% 1% 2018/6 Net sales :JPY 78.7 billion Others 0.1 Japan 11.1 Others 1.8 Pharmaceuticals etc., 1.4 Chemicals/ Fertilizers 9.0 11% 2% 2% Petrochemicals 42.4 Russia and Central Asia 1.6 2% 11% Region Product 54% 46% Power/Railways etc., 18.3 23% 8% Southwest Asia, Middle East and Africa 9.7 Southeast Asia 36.2 Major Contracts Oil & Gas 5.8 Petrochemical, USA Petrochemical, MALAYSIA Petrochemical, TURKMENISTAN Power/Railway etc., THAILAND Power/Railway etc., JAPAN 4
Balance Sheet Assets 2018/3 2018/6 Difference Liabilities and net assets 2018/3 2018/6 Difference Current assets 221.3 218.2 (3.1) Current liabilities 198.4 195.4 (3.0) Cash and deposits 111.0 99.0 (12.0) Short-term interest bearing debt 7.1 7.2 0.1 Marketable securities 1.0 0.9 (0.1) Other current liabilities 24.1 19.5 (4.6) Other current assets 15.3 14.2 (1.1) <Operating liabilities> <Operating assets> Notes and accounts payable 104.7 110.1 5.4 Notes and accounts receivable 62.0 74.3 12.3 Advance receipts on uncompleted 62.4 58.5 (3.9) Work in progress 31.7 29.6 (2.1) contracts Non-current assets 30.5 30.1 (0.4) Noncurrent liabilities 28.2 28.1 (0.1) Property, plant and equipment 11.9 11.7 (0.2) Long-term interest bearing debt 23.7 23.6 (0.1) Intangible assets 0.9 0.8 (0.1) Other noncurrent liabilities 4.5 4.5 0.0 Investments and other assets 17.5 17.5 0.0 Net assets 25.1 24.7 (0.4) Shareholder's equity 20.3 21.7 1.4 Accumulated other comprehensive income 4.7 2.9 (1.8) Non-controlling interests 0.0 0.0 0.0 Total assets 251.8 248.3 (3.5) Total liabilities and net assets 251.8 248.3 (3.5) *The company applied "Partial Amendments to Accounting Standard for Tax Effect Accounting" (The Accounting Standards Board of Japan ("ASBJ") Statement No. 28, February 16, 2018), etc. from the beginning of the fiscal year ending March 31, 2019. The figures as of March 31, 2018 is based on retrospective application. 5
New Orders Region 51.7 Product 51.7 33.7 33.7 2017/6 2018/6 2017/6 2018/6 Japan 3.8 16.0 Petrochemicals 5.2 23.0 Southeast Asia 45.0 14.2 Oil & Gas 23.6 1.2 Southwest Asia, Power / Railways etc. 20.6 2.5 0.7 1.0 Middle East and Africa Chemicals / Fertilizers 0.3 1.1 Russia and Central Asia 0.8 0.7 Pharmaceuticals etc. 0.5 4.2 North America 0.8 0.3 Others 1.5 1.7 Central and South America 0.2 0.1 Total 51.7 33.7 China 0.3 0.6 Others 0.1 0.8 Total 51.7 33.7 2018/6 Major Contracts Petrochemical, INDONESIA Petrochemical, JAPAN 6
Backlog of Contracts Region Product 448.6 448.6 385.2 385.2 2018/3 2018/6 2018/3 2018/6 Japan 64.1 69.0 Petrochemicals 147.4 124.1 Southeast Asia 142.6 118.8 Oil & Gas 24.1 19.2 Southwest Asia, Middle East and Africa 153.7 141.9 Power / Railways etc. 105.2 88.9 Chemicals / Fertilizers 161.6 140.0 Russia and Central Asia 4.4 3.7 Pharmaceuticals etc. 9.5 12.3 North America 61.1 39.2 Others 0.8 0.7 Central and South America 19.2 8.6 Total 448.6 385.2 China 3.3 3.0 Others 0.2 1.0 Total 448.6 385.2 7
Forecast for 2019/3 No change from initial forecast as of May 15, 2018 2018/3 1Q 2018/6 Forecast 2019/3 Net sales 335.6 78.7 300.0 Gross profit (12.5) 5.8 21.0 Gross profit margin -3.7% 7.4% 7.0% SG&A expenses 20.4 3.9 19.0 Operating income (32.9) 1.9 2.0 Operating income margin -9.8% 2.4% 0.7% Non-operating income and expenses 5.1 0.5 0.5 Ordinary income (27.8) 2.4 2.5 Profit attributable to owners of parent (26.8) 1.3 1.0 New orders 309.3 33.7 300.0 Dividends per share 0-0 Exchange rate for the forecast 1US$= 110 8
Toyo Engineering Corporation URL http://www.toyo-eng.com For further questions on this material, please contact: Wataru IIDA General Manager Corporate Communications Department 2-8-1 Akanehama, Narashino, Chiba, Japan 275-0024 TEL +81-47-454-1681 E-mail ir@toyo-eng.com The forecasts given above are based on information available at the time of compilation and are inherently subject to a variety of risks and uncertainties. Actual results may vary significantly from forecasts due to factors including, but not limited to, changes in the economic or business environment and exchange rate fluctuations.