FYE 2015 I nterim Settlement of Accounts Presentation Meeting - PowerPoint PPT Presentation

Tsubakimoto Chain Co. FYE 2015 I nterim Settlement of Accounts Presentation Meeting November 18, 2014

1 FYE 2015 I nterim Settlement of 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.) FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

1. I nterim Review 2 Highlights of Consolidated Settlement of Accounts ■ Earnings set a new 1H record in FYE 2015 (net sales, operating income, ordinary income, and net income). (Yen, millions) FYE 2014 FYE 2015 YoY First half figure฀ (actual) First half figure (act ual) Increase/decrease 84,532 92,948 10.0% Net sales 7,347 9,922 35.0% Operating income Operating income margin 8.7% 10.7% 7,511 10,416 38.7% Ordinary income 6,578 4,370 50.5% Net income for the quarter － 35.16 23.35 First -quart er net income per share － 98.86 103.01 (Exchange rates US$1) － 129.98 138.89 (Exchange rates €1) Shareholders' equity ratio * 1 50.0% 52.6% 0.13 Net D/E ratio * 2 0.14 － 7.00 4.00 Interim dividend per share (yen) * Note 1: Shareholders’ equity ratio = Equity capital / total assets * Note 2: Net D/E ratio = (Interest-bearing debt – Cash equivalent) / (Capital adequacy) FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

2. I nterim Review Trend in Quarterly Consolidated Settlement of Accounts 3  Trends in sales and operating income margin (Consolidated) (Yen, 100 millions) 495 485 500 25% 444 439 439 417 405 360 367 355 400 20% 300 15% 11.4% 11.1% 10.1% 10.2% 9.1% 8.6% 7.7% 8.2% 7.9% 9.4% 200 10% 100 5% 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FYE 2013 FYE 2014 FYE 2015 Major FYE 2015 FYE 2013 FYE 2014 exchange rates (2Q cumulative) US$ ¥82.92 ¥100.16 ¥103.01 Euro€ ¥106.78 ¥134.21 ¥138.89 : Operating (Unit: Yen, 100 million) : Net sales income margin FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

3. I nterim Review 4 Analysis of Factors Consolidated I ncreasing/ Decreasing Operating I ncome  First half of FYE 2014 (actual figures) vs. First half of FYE 2015 (actual figures) I ncreasing factors Decreasing factors Forex effect Other fixed cost Improved cost price, etc. ¥0.2 billion ¥1 billion ¥1 billion Labor cost Sales increase FYE 2015 ¥0.9 billion Operating income Increase in ¥3.3 billion operating income FYE 2014 Operating income ¥2.6 billion ¥9.9 billion ¥7.3 billion Note: Operating income values are rounded off. FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

4. I nterim Review 5 Breakdown by Business Segment ■ Growth continued in Automotive Parts Operations. Chain and Power Transmission Units and Components Operations remained firm. Materials Handling Systems Operations recorded sales and income growth on solid performance by distribution- and steel- related products. (Yen, million) FYE 2014 FYE 2015 YoY First half figure (actual) First half figure (act ual) Increase/decrease Net sales * 1 26,876 29,694 10.5% Chain 1,486 2,354 58.4% Operating income Operations Operating income margin฀ ฀ 5.5% 7.9% Net sales * 1 10,340 11,200 8.3% Power Transmission Units 932 1,119 20.0% Operating income and Components Operations Operating income margin฀ ฀ 9.0% 10.0% Net sales * 1 32,490 29,492 10.2% Automotive 6,168 4,823 27.9% Operating income Parts Operations Operating income margin฀ ฀ 19.0% 16.4% Net sales * 1 17,551 19,484 11.0% Materials 91 209 130.1% Handling Systems Operating income Operations Operating income margin฀ ฀ 0.5% 1.1% Net sales * 1 1,396 1,427 2.3% Other * 2 28 47 67.4% Operating income Operating income margin฀ ฀ 2.0% 3.3% * 1: Sales figures include int ernal sales and t ransfers bet w een segment s. * 2: "Ot her" is not a report able segment . FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

5. I nterim Review 6 Earnings Trend by Business Segment ■ Trends in sales and operating income margin ● Power Transmission Units and Components ● Chain Operations Operations (Yen, 100 million) (Yen, 100 million) 200 20% 200 20% 150 15% 150 15% 100 10% 100 10% 50 5% 50 5% 0 0% 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q FYE 2014 FYE 2015 FYE 2014 FYE 2015 < Sales by region> < Sales by region> ฀ In Japan and North America, performance was solid. ฀ Domestic performance was favorable. ฀ In Europe, the weak-yen effect helped to boost sales ฀ In China, the Shanghai subsidiary did well, while the greatly. Tianjin subsidiary’s sales were about the same year-on- ฀ In Asia, results were solid overall. year. ฀ In China, the Tianjin Plant faced a tough order environment and failed to match expectations. Unit: Yen, 100 million : Sales : Operating income margin FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

5. I nterim Review 7 Earnings Trend by Business Segment ■ Trends in sales and operating income margin ● Automotive Parts Operations ● Materials Handling Systems Operations (Yen, 100 million) (Yen, 100 million) 200 20% 200 20% 150 15% 150 15% 100 10% 100 10% 50 5% 50 5% 0 0% 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q FYE 2014 FYE 2015 FYE 2014 FYE 2015 -50 -5% < Sales by region> < Sales by industry> ฀ Production in Japan for overseas subsidiaries was strong. ฀ Sales to the distribution, drug discovery, and steel ฀ Rapid growth was recorded in China and South Korea. industries were favorable. -100 -10% ฀ In the US and Europe, favorable results were ฀ Conveyors for the domestic machine tool industry maintained. sold well. ฀ Sales in Thailand were good in 1Q, but trended ฀ Big orders for granular materials conveyance downward in 2Q. equipment declined, impacting sales. Unit: Yen, 100 million : Sales : Operating income margin FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

6. I nterim Review 8 Overview by Region ■ The Company has reclassified its regional segments.* Net sales * 1 21,075 22,573 7.1% 2,220 America 1,744 27.3% Operating income 8.3% 9.8% Operating income margin Net sales * 1 10,173 11,932 17.3% ▲ 22 － Europe 137 Operating income － 1.1% Operating income margin Net sales * 1 4,833 5,129 6.1% Trans-Indian 648 773 19.3% Operating income Ocean region 15.1% 13.4% Operating income margin Net sales * 1 4,829 6,686 38.4% 583 China 355 64.2% Operating income 7.4% 8.7% Operating income margin Net sales * 1 3,365 2,504 34.4% Taiwan & 225 260 15.7% Operating income South Korea 9.0% 7.8% Operating income margin Net sales * 1 52,637 57,417 9.1% 3,807 5,572 46.3% Japan Operating income 9.7% 7.2% Operating income margin * Sales figures include internal sales and transfers between segments. < Major exchange rates> * Please refer to the 1H FYE 2014: US$= ¥98.86, Eur€= ¥129.98, Can$= ¥95.84, A$= ¥94.22, THB= ¥3.21, NT$= ¥3.31, RMB= ¥15.49, WON= ¥0.087 supplementary 1H FYE 2015: US$= ¥103.01, Eur€= ¥138.89, Can$= ¥94.57, A$= ¥95.76, THB= ¥3.15, NT$= ¥3.42, RMB= ¥16.64, WON= ¥0.098 documentation for comparisons with segments prior to last year. FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

7. I nterim Review 9 Overseas Sales Ratio FYE 2014 Interim FYE 2015 Interim Overseas sales ratio : 52.6% Overseas sales ratio : 53.7% Taiwan & South Korea Taiwan & South Korea 3.9% 3.3% China China 6.6% 6.9% Trans-Indian Ocean Trans-Indian Ocean region 6.3% region 6.3% Europe Europe 2Q 2Q 12.3% FYE 2015 11.7% FYE 2014 Consolidated Consolidated sales of sales of ¥84.5billion ¥92.9billion Japan America Japan America 46.3% 24.6% 47.4% 24.3% Notes: Sales are based on the location of the customer and classified by country or region. FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting

10 Full Year Consolidated Settlement of Accounts Forecasts for FYE 2015 FYE 2015 I nterim Settlement of Tsubakimoto Chain Co. Accounts Presentation Meeting