FY2015(Ended Mar. 31 st, 2016) Financial Overview and Mid-term Management Plan

Transcription

1 FY215(Ended Mar. 31 st, 216) Financial Overview and Mid-term Management Plan May 11 th, 216 Hitachi Koki Co., Ltd. 1-1 FY215 (Ended Mar. 31 st, 216) Result and Projection (IFRS) FY214 Revenues Adjusted operating income 7.1 Operating income 6.4 Operating margin 4.7% EBIT 6.2 Income before income tax Net income attributable to Hitachi Koki stockholders Forex FY (137.2) 3.3 (3.4) 2.6 (2.7) 1.9% (2.%) 2.7 (2.8) 2.8 (2.8) 1.1 (1.1) FY215 VS FT214 14% (11%) 46% (47%) 41% (42%) - 44% (45%) 44% (45%) 31% (32%) Unit: B, ( ) exclude FY216 (projection) 197. (145.6) 7.6 (5.5) 7.3 (5.7) 3.7% (3.9%) 7.3 (5.7) 6.8 (5.4) 4.3 (3.2) FY216 VS FT % (16%) 233% (163%) 276% (21%) 1-266% (26%) 245% (19%) 396% (283%) USD EUR EUR/USD *1: "Adjusted Operating Income" is presented as revenues less cost of sales as well as selling, general and administrative expenses. *2: EBIT Earnings Before Interest and Tax" is presented as income before income taxes less interest income plus interest charges. 1

2 1-2 FY215 (Ended Mar. 31 st, 216) Major Management Index FY213 FY214 FY215 Hitachi Koki Co., Ltd. Stockholders' equity ratio Hitachi Koki Co., Ltd. Stockholders' equity per share End of 4Q End of 4Q End of 4Q 73.9% 75.5% 57.6% 1,81 1,153 1,84 ROE 1.7% 3.1% 1.% ROA 1.2% 2.3%.6% P/E P/B Closing stock price ROE=Net income Attributable to Hitachi Koki Co., Ltd. Stockholders(annual basis) Hitachi Koki Co., Ltd. stockholder s equity 1 2.ROA=Net income Attributable to Hitachi Koki Co., Ltd. Stockholders(annual basis) total assets Revenues, Operating Income (IFRS) Revenues B Power Tool Life-Science Operating Income (Power Tool) (14%) (14%) 4.8 (116%) 4.3 (Sales for Mar. 216) (141%) (11%) 2.6 (42%) 1.1 (16%) 1.6 (28%) 197. (139%) 4.3 (91%) 51.4 FY214 FY215 FY216 projection Operating Income 13 B (276%) (17%).9 (8%) (295%)

3 2-2 Analysis of Operating Income FY214 Extraordinary loss.5 Expense for restructuring of engine business.9 Profit from change of pension plan.9 Sales increase Forex impact 1.3 Structural transformation 2.1 Unit: B Cost for M&A Loss from decrease of production 1.1 Others FY214 FY Power Tools Revenues by region (IFRS include ) B % 24% 16% 28% Breakdown by area for FY216 sales projection of, 51.4B Europe 36.3B (71%) ( ) ratio N. America 7.5B (15%) Asia 3.2B ( 6%) Others 4.4B ( 8%) zero for Japan Breakdown by area for Mar. 215 sales, 4.3B Europe 3.3B (75%) ( ) ratio N. America.6B (13%) Asia.2B ( 5%) Others.3B ( 7%) zero for Japan 31% (14%) 41.8 (98%) % 39.7 (126%) (94%) % 7. (86%) 39% 26% 14% (141%) 74.8 (179%) 51.2 (129%) 15.2(131%) 11.5(164%) % 21% (98%) (19%) FY214 FY215 FY216 projection Europe N.America Asia Others Japan 5 3

4 3-2 Power Tools Revenues by region (IFRS exclude ) include B % 24% 16% 28% (11 14%) % 38.5(91 98%) 27% (17 141%) Europe 38.5 (1 179%) 31% 43.8 N.America % 39.1( %) ( %) Asia (93 94%) 14% 12.(15 131%) % 6.7 (83 86%) 7. (15 164%) Others 28% 28% Japan (98%) (19%) FY214 FY215 FY216 projection Power Tools Revenues in Europe (IFRS Euro basis) M EUR (189%) Increase presence in Europe (13%) (Sales for Mar. 216) 26 Russia (66%) (46%) Europe (exclude Russia) (95%) (16%) (19%) (13%) FY214 FY215 FY216 projection 7 4

5 3-4 Power Tools Revenues in N. America (IFRS USD basis) M USD HC Channel (116%) 5 (Sales for Mar. 216) 179 (126%) 445 (134%) (119%) 1 IC Channel (13%) 168 (114%) FY214 FY215 FY216 projection Strategy for FY216(1) 1. Promotion of drastic structural transformation Aiming increment of growth ability and earning capacity by pushing through structural transformation globally in a cross-sectional manner Example in FY215 : Closure of factory in Ireland, factory for engine tool in Japan and sales company in Brazil 2. Sales strategy (1) Power Tools Concentrating to developed nations where expansion of business scale and improvement of profitability are expected Japan Drastic review of sales structure 1. Drastic review of selling system 2. Development of new sales channel ~Collaboration with Hitachi Group companies 3. Strengthening of Sales subsidiary 4. Allocating resource of engine business to power tool business 5. Sales expansion of strategic products Product PR featuring Japanese actor, Yuji ~Providing 2 years warranty AC brushless motor mounted products, followed by Li-ion battery 9 5

6 4-2 Strategy for FY216(2) Europe Sales expansion through synergy with and expansion of strategic products 1 Early implementation of product complement with 2 Proactive sales promotion including workshop for strategic products 3 Further streamlining of European distribution center North America Steady implementation of sales doubling plan by strengthening of alliance with major home center 1 Timely launch of new products for Lowe s 2 Cultivation of construction channel, centered on competitive pneumatic tool Workshop in Spain (2)Life-Science Instrument Strengthening of business structure and development & cultivation of material-related customers Strategy for FY216(3) 3. Product strategy Continuous launch of competitive products with innovation and user s needs 4. Generating synergy at an early date 1 Sales and profit increase by product complement 2 Cost reduction by streamlining of procurement activity 5. Service first Operation with customer s perspective 1Entire world: Strengthening of Customer Satisfaction and Quality Assurance system Unified management of direct information from front line of sales team Speedy response, improvement of service quality Increasing customer satisfaction 2Japan: Proactive operation of central power tool service center Enforcement of after sales service system as a pioneer in the market 11 6

7 5-1 Mid-term Management Plan (1) Management policy 1. Streamlining and improving management efficiency by structural transformation 1Promotion of drastic structural transformation 2Continuous promotion of cost reduction 3Strengthening cash generation capability by SCM innovation 2. Early generation and maximization of synergy with 3. Development of innovative new products toward development of new market 4. Implementation of M&A and alliance for further business expansion Bumping up a notch in market share and achieving double-digit operating margin Mid-term Management Plan (2) Objective of M&A Exponential growth in sales in strategy area ~Acquisition of brand which is well-established as high quality products Wide product range Established global brand Global production structure Prominent motor technology Technical capabilities in construction, pneumatic, wood-working tools High quality products for professionals High market presence in Europe High marketing and advertising capabilities Efficient SCM Technical capabilities of high capacity battery Reputation in metal working tools Generating synergy at an early date 13 7

8 5-3 Mid-term Management Plan (3) The Ideal Position in FY218 Cost structural reform Business base reinforcement Reaping profit M&A Promotion of drastic structural transformation Operation Streamlining/ Reaping synergy Sales and Operating income growth FY215 FY216 FY217 FY218 Revenues B yen 197. billion yen 23. billion yen Op. income 2.6 B yen 7.3 billion yen 18.7 billion yen Op. margin 1.9% 3.7% 8.1% ROE 1.% 3.8% 1.4% 14 Cautionary Statements The forecasts shown above is based on the information available at the time they were prepared and certain assumptions we consider reasonable. Actual consolidated performance may differ sharply from our forecasts owing to a wide rage of factors, including shifts in economic conditions in major markets, changes in foreign currency exchange rates, and changes in raw material prices. 15 8

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