Business Results for the 1 st half ended May. 31, 2016 July. 20, 2016
1 st Half Results & Full Year Forecast 1 st half year Full Year 1 st half year.% Full Year forecast.% Net sales.... Operating Income (profit ratio on net sales) (.%). (.%)..% (.%).. (.%). Ordinary Income (profit ratio on net sales) (.%). (.%)..% (.%).. (.%). Net Income.%..... Exchange rate (USD) yen yen yen yen (Euro) yen yen yen yen Factors for change in Net Sales Net sales Apply 1 st half exchange rate Effect of exchange rate 3.4 1 st half 1 st half 1 st half increase/ decreace increase/ decreace Domestic 58.2 56.2 56.2 3.4 3.4 Overseas 49.1 49.9 53.4 1.7 8.7 America 14.7 15.4 16.5 4.3 11.6 Europe 5.5 6.1 6.5 10.8 17.2 Asia 28.7 28.3 30.3 1.4 5.6 (China) (12.3) (12.6) (13.6) 1.7 10.0
Factors for change in Operating Income Operating Income Cost up 3.8 (mainly by prior investments) Effect of exchange rate 1.8 Factor for prior investments Improving each aspect of the 4Ms to achieve our mid-to-long-term vision Increase of employees Sales, ENG man man Development, Back Office man Production Capital Investment man. billion yen Outlook for full year Net Sales Effect of exchange rate 9.0 Apply exchange rate increase/ decreace increase/ decreace Domestic 115.9 113.0 113.0 2.5 2.5 Overseas 102.6 99.0 108.0 3.5 5.2 America 32.3 31.5 34.0 2.7 5.0 Europe 11.0 11.5 12.5 4.3 13.4 Asia 59.2 56.0 61.5 5.5 3.8 (China) (25.8) (26.0) (29.5) 0.6 14.2
Outlook for full year Operating Income Cost up 5.7 (mainly by prior investments) Factor for prior investments Increase of employees man Effect of exchange rate 4.5 Sales, ENG man Development, Back Office man Production man Capital Investment. billion yen Current Business Situation, Change in Demand Current Business Situation Domestic Sales and production of automobile have decreased. Industry of machinery and construction machine have been weak. Overseas Though economy is slowing down, demand have been steady. Emerging countries including China Modernization, high-functionality Change in Demand Automobile : EV, FCV is getting more and more popular Demand for Tools, Components will decrease Low birthrate and longevity, shortage of workers at production sites Improving productivty by IoT and AI technology Automation and systematization in the field of production is getting popular.
Change of Management Policy Net Sales Becoming a comprehensive machinery manufacture by focusing on robot business. Aiming to sell a variety of robotic systems to various types of industry. Improving each aspect of the 4Ms (Development, Sales, Production) FY Strengthening the ability of System Integration. NOT just selling robots BUT selling system that include robots To realize automation for many customers in the field of industrial machinery Main contents Showrooms Demonstration and test area Robot-School Robot FA Exhibition HallToyama Head Office opened in Oct. 2015
Opening Robot Technical Centers around the world Shanghai Technical center will open in the biggest exhibition hall in China (Nov,2016) Tsingtau Shanghai Taipei Guangzhou Opening technical centers in 10 locations. Detroit, Atlanta, San Jose, Mexico, Germany, Thailand Strengthening robot business Manufacturing Plant Expanding production in China Improving the structure of development and production in Toyama Head Office Rayong,Thailand Indiana, USA Robot Business FY2017 Employees 300 500 over (Compared to ) Capital Investment 7.0 billions yen 13.0 billions yen
Consolidated Financial Highlights of 1 st half 1 st Half 1 st half () 1 st half (B) Increase/Decrease () (B) (A) Net sales Operating Income Ordinary Income Net Income
Financial data 1 st Half 1 st half () 1 st half (B) Increase/Decrease () (B) (A) ROE Total Assets Stockholder's equity (stockholder's equity ratio) Interest-bearing debt (Net D/E ratio) Capacity investment Depreciation and amortization Number of employees Exchange rate (USD) (Euro) 5 yen appreciation against USD 9 yen appreciation against Euro Sales by Region and Market Segment 1 st Half Sales by region Europe. Europe. America. America. Energy and Infrastructure. Sales by market Energy and Infrastructure. Asia. Asia. Industrial machinery /Market. Industrial machinery /Market. Automobile Automobile
Sales and Operating Income by Business Segments 1 st Half M A C I N E R Y & T O O L S C o m p o n e n t s O t h e r s 1 st Half (A) 1 st Half Apply 1 st half exchange rate 1 st Half (B) () (B)(A) Cutting Tools... Machine Tools... Robots... Net Sales Operating Income Bearings Hydraulic Equipment Net Sales Operating Income Net Sales Operating Income Net Sales Total Operating Income Factors for Change in Operating Income 1st Half Profit up2.4 Profit down5.6 Improved operating rate 0.9 Cost reduction 1.5 Price down 0.5 Increase in fixed cost and SGA 3.3 Effect of Exchange rate 1.8 3.2
Consolidated Financial Highlights of Plan e (A) Forecast(B) Increase/Decrease (Change Rate) (B) (A) Net Sales Operating Income Ordinary Income Net Income
Consolidated Financial Data e (A) Forecast(B) Increase/Decrease (B) (A) ROE Total Assets Stockholder's equity (stockholder's equity ratio) Interest-bearing debt (Net D/E ratio) Capacity investment Depreciation and amortization Number of employees Exchange rate (USD) (Euro) 11 yen appreciation against USD 14 yen appreciation against Euro Sales by Region and Market Segment Sales by region Sales by market e Europe. America. Europe. America. Energy and Infrastructure. Energy and Infrastructure. Asia. Asia. Industrial machinery /Market. Industrial machinery /Market. Automobile Automobile
Sales and Operating Income by Business Segments e M A C I N E R Y & T O O L S C o m p o n e n t s O t h e r s (A) Forecasts (B) Increase/Decrease (%) (B)(A) Cutting Tools Machine Tools Robots Net Sales Operating Income Bearings Hydraulic Equipment Net Sales Operating Income Net Sales Operating Income Net Sales Total Operating Income Factors for Change in Operating Income e Cost reduction 3.3 Profit up4.3 Profit down10.2 Increase in fixed cost and SGA 4.8 Improved operating rate 1.0 Price down 0.9 Effect of Exchange rate 4.5 5.9
These materials describe our future earnings forecasts and business plans, and are based on the assumption of an economic environment and business policies that remain fixed as they are now. Therefore, please note that actual earnings are subject to numerous factors, including market fluctuations and currency fluctuations, which may result in a different earnings forecast.