2q fy2013 earnings presentation - furusato › wp-content › uploads › 2016 › 02 › pm... ·...

2Q FY2013

Earnings Presentation

2

(April 1 to September 30, 2013)

2Q FY2013

Consolidated Results

3

125.0%+3.3%3.2%

1,2053.1%

1,167Ordinary income

658

1,022

4,293

5,315

37,420

1H

FY12

1.8%

2.7%

11.5%

14.2%

100.0%

% of sales

+6.1%

+5.0%

+3.2%

+3.6%

+0.6%

Y-o-Y

% change

699

1,073

4,431

5,505

37,634

1H

Vs.

Forecast

% of sales

104.4%14.6%Gross profit

Net income

Operating income

SG & A Expenses

Net sales

1.9%

2.9%

11.8%

100.0%

FY13

128.3%

129.3%

99.8%

103.4%

Copyright© Furusato Industries, Ltd. All Rights Reserved

Consolidated ResultsRounded down to the nearest million yen

4

(6,000)0

6,00012,00018,00024,000Net sales

-50005001,0001,5002,000Operating incomeNet sales Operating income

Net sales 13,869 16,247 16,788 17,549 16,262 18,125 19,399 19,837 18,156 19,263 18,823 18,841 17,803 19,831 Operating income -207 289 288 396 286 593 609 724 308 713 621 569 294 7792010.1Q 2Q 3Q 4Q 2011.1Q 2Q 3Q 4Q 2012.1Q 2Q 3Q 4Q 2013.1Q 2QCopyright© Furusato Industries, Ltd. All Rights Reserved

Rounded down to the nearest million yen

Consolidated ResultsNet sales・Operating Income Quarterly Base

5

114.1%(20.8)%1.8%

3332.2%

421

Equipment and Tools

355

191

1,022

11,158

7,391

18,869

37,420

1H

FY12

3.2%

2.6%

（% of sales）2.7%

29.8%

19.8%

50.4%

（Composition）100.0%

+74.7%

(46.2)%

+5.0%

+9.3%

(13.2)%

+0.8%

+0.6%

Y-o-Y

% change

103.5%50.6%

19,025

Equipment and Tools

98.7%17.0%

6,412

Machine and Facility

106.1%32.4%

12,196

Construction and Piping Products

621

103

1,073

37,634

1H

Vs.

Forecast

Construction and Piping Products

Machine and Facility

Operating income

Net sales

5.1%

1.6%

（% of sales）2.9%

(Composition)100.0%

FY13

163.5%

83.6%

129.3%

103.4%



Consolidated Results by SegmentNet Sales・Operating Income

6

117.7116.4111.5107.6 111.1Preliminary107.6112.1Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.94.195.9101.3 99.1 97.8Preliminary94.7 96.1Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.

2012 2013

+0.3%Y-o-Y

7,152

2Q

Actual

6,450

1Q

Actual (9.2)%Y-o-Y

27,435

13,832

2H

Forecast

(2.0)%Total

13,603

1H

ActualY-o-YY-o-Y

Equipment and Tools

Business

Industrial Equipment

Net sales(4.4)% +0.5%



Net Sales BreakdownIndustrial Equipment Business

BusinessIndustrial tools business of G-net (consolidated subsidiary): Wholesale of machines, industrial tools, parts, consumable supplies used for industrial production in Japan

Impacted by factory operating ratio of domestic manufacturing sector

MeasuringEquipment

FacilityEquipment

IndustrialRobot

Vise EnvironmentalEquipment

MotorCuttingTools

Major product line

Market Trend

Indices of industrial Production （Year 2005＝100） Inventory ratio of industrial production （Year 2005 ＝100）

7

103.3112.0119.2118.0136.3Preliminary

112.3132.8

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.95.4101.1111.7 109.8 102.9Preliminary103.0 103.6

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.2012 2013Copyright© Furusato Industries, Ltd. All Rights Reserved

+13.9%Y-o-Y

1,201

2Q

Actual

1,245

1Q

Actual +4.5%Y-o-Y

4,944

2,497

2H

Forecast

+4.3%Total

2,447

1H

ActualY-o-YY-o-Y

Equipment and

Tools Business

Machine and Tools for AutomotiveNet sales

+8.9% +0.2%Rounded down to the nearest million yen

Net Sales BreakdownMachine and Tools for Automotive Business

BusinessOverall businesses of Gifu Shoji (consolidated subsidiary), Direct sales of machinery and industrial tools to the automotive industry mainly in Chubu region

Impacted by business trend of the automotive industry

Major product line

Machine ToolsCutting Tools

Production of Motor Vehicle Parts（Year 2005＝100） Inventory Ratio of Motor Vehicle Parts（Year 2005＝100）MarketTrend

8

240

227

199

215

257209

241

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.20122013


+27.7%Y-o-Y

1,236

2Q

Actual

1,229

1Q

Actual +24.2%Y-o-Y

4,942

2,476

2H

Forecast

+12.4%Total

2,466

1H

ActualY-o-YY-o-Y

Equipment and

Tools Business

Housing Equipment

Net sales+25.9% +1.5%


Net Sales BreakdownHousing Equipment Business

Business

Impacted by trend of new construction starts of houses and consumer spending

Major product line

Kitchen

systems

Housing equipment system business of G-net (consolidated subsidiary): Wholesale of housing equipments used for new construction and remodel

Bath

equipments

Gas

appliances

MarketTrend

Leading indicatorNew Construction Starts of Houses （K unit）

9

2,154

2,171

2,262

2,200

2,153

2,299


2013

83

92

97

101

110

84

88

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.Copyright© Furusato Industries, Ltd. All Rights Reserved

(16.6)%Y-o-Y

2,750

2Q

Actual

2,532

1Q

Actual (10.4)%Y-o-Y

10,981

5,698

2H

Forecast

(1.8)%Total

5,283

1H

ActualY-o-YY-o-Y

Machine and

Facility Business

Machine Tool

Net sales(13.7)% +12.5%Rounded down to the nearest million yen

Net Sales BreakdownMachine Tool Business

Business

Impacted by investment in manufacturing facilities in Japan

Major product line

Machine business of G-net (consolidated subsidiary): Wholesale of machinery and facilities used for

industrial production in Japan

Machine Tools

Production facilities and machinery

Leading indicator Machinery orders （Private sector excluding volatile orders）（Billions of yen） Leading indicator Orders received for machine tools （Domestic order）（Billions of yen）Market

Trend

10Copyright© Furusato Industries, Ltd. All Rights Reserved

+2.5%Y-o-Y

666

2Q

Actual

462

1Q

Actual (25.0)%Y-o-Y

2,275

1,146

2H

Forecast

(24.3)%Total

1,129

1H

ActualY-o-YY-o-Y

Machine and

Facility Business

Factory Automation

Net sales(10.9)% (34.1)%

2,154

2,171

2,262

2,200

2,153

2,299


2013

83

92

97

101

110

84

88

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.


Net Sales BreakdownFactory Automation Business

Business

Major product line

Machine Tools

Factory automation business of G-net (consolidated subsidiary): Direct sale of machines and facilitiesused for industrial production in Japan

Product facility and machinery

Leading indicator Machinery orders （Private sector excluding volatile orders）（Billions of yen） Leading indicator Orders received for machine tools （Domestic order）（Billions of yen）Market

Trend

Impacted by investment in manufacturing facilities in Japan

11

＜Machine Tool Business Orders Received＞


3,128

5,241

Actual

FY12

% changeActualFacility Business

3,506

5,688

FY13

Orders received at year-end

1H Orders received

Machine and

+12.1％

+8.5％

Y-o-Y

Orders at year-end ⇒up １２％

（Orders at year-end ÷ Orders in 2H）５９．７％⇒６１．６％（FY12）（FY13）

929

1,722

Actual

FY12

% changeActualFacility Business

642

1,724

FY13

Orders received at year-end

1H Orders received

Machine and

(30.9)％

+0.1％

Y-o-Y

＜Factory Automation Business Orders Received＞


Net Sales BreakdownMachine Tool

12120

122

102

114

140

118

137

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.68.0068.3373.33 71.66 74.6670.00 71.00Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.2012 2013 +9.1(3.5)+5.3Welding

Supplies

+19.9(0.6)+19.1High strength bolts

+8.1(0.2)+7.7Turnbuckle brace

VolumeUnit

price

Net sales1H sales


+11.7%Y-o-Y

5,339

2Q

Actual

4,623

1Q

Actual +11.6%Y-o-Y

19,949

9,987

2H

Forecast

+8.8%Total

9,962

1H

ActualY-o-YY-o-Y

Construction and Piping ProductsBusiness

Steel Frame Building SuppliesNet sales

+11.7% +6.0%Rounded down to the nearest million yen

Net Sales BreakdownSteel Frame Building Supplies Business

Market Trend

Business

Impacted by investment in buildings in Japan

Major product line

Steel frame building supplies business of Furusato Industries: Direct sale of structural members, secondary supplies, machines and tools, consumable supplies

JIS Turnbuckle brace（Share ６０％）High Strength Bolts（Share ２０％）In-house

products２６％ of salesProcured supplies７４％ of sales

Machinery and tools

WeldingSuppliesLeading indicator

Volume of Steel Frame Used in Building（10Kt） Steel Product Prices （H-beam）（Yen）Unit selling price and volume Y-o-Y （％）


+2.7%Y-o-Y

1,212

2Q

Actual

1,021

1Q

Actual (3.2)%Y-o-Y

4,734

2,500

2H

Forecast

+5.0%Total

2,234

1H

ActualY-o-YY-o-Y

Construction and Piping ProductsBusiness

Piping ProductsNet sales

(0.1)% +9.9%

Forecast


Net Sales BreakdownPiping Products Business

Business

Major product line

Pipe fittings Flanges

Piping products business of Furusato Industries: Direct sales of pipe fittings, flanges, valves, volts, machinery and tools used for building piping facilities

Valve Fastening products

Machinery and tools

Weldingsupplies

Market Trend

！ Aiming for a growth with the market share improvement regardless of the business environment due to starting the business from scratch

3.8

4.6

4.6

3.7

4.1

4.7

3.4

0.6

1.3

4.5

2.5FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Net sales （Unit：billions of yen）Impacted by investment in manufacturing facilities in Japan

14

FY13FY12

+138

+66

+33

+99

(4)

(4)

+47

+38

Y-o-Y

Change

+1.3%2,7122,678Personal expenses

Items

(8.9)%5055Other

+6.2%1,1301,064Other

+2.7%3,8433,743

General and administrative

expenses

(59.7)%37

Provision of allowance fordoubtful accounts

+9.8%535487Freightage and packing expenses

Items

Total selling, general and

administrative expenses

Selling expenses

4,293

550

1H

+3.2%

+7.0%

Y-o-Y% change

588

4,431

1H

(1.3)%(5)419424Machine and Facility

+37

+54

+52

－(15)(53)Other adjustment

+2.6%2,1232,068

Construction and PipingProducts

+2.8%1,9051,852Equipment and Tools

Items

Breakdown by segment



Consolidated SG&A Expenses

15

－+2626－Gain on sales of investment securities

FY13FY12

－+55－Loss on retirement of noncurrent assets

+40

+18

+58

+5

+26

+38

Y-o-Y

Change

+3.7%527508Income taxes

+5.1%1,2261,167Income before income taxes

+3.3%1,2051,167Ordinary income

－5－Extraordinary loss

Net income

Extraordinary income

658

－

1H

+6.1%

－

Y-o-Y

% change

26

699

1H

■ 〔Net income per share〕 ¥48.18



Consolidated Net Income

16

FY13FY12

+49.25

+0.7Ｐ

+640

+78

(224)

(145)

+727

(232)

+494

Y-o-Y

Change

―63.9％63.2％Net assets to total assets (%)

+2.1%30,68030,040Total net assets

(1.3)％16,42916,654Current liabilities

+9.4％916838Noncurrent liabilities

item

(0.8)%17,34617,492Total liabilities

+5.7％13,59912,872Noncurrent assets

(0.7)％34,42734,660Current assetsIte

m

Net assets per share

Total assets

¥2,066.57

47,532

Mar. 31, 2013

+2.4%

+1.0%

Y-o-Y% change

48,027

¥2,115.82

Sep. 30, 2013

■ 〔Current assets〕 Cash and deposits +593M, Notes and accounts receivable -952M

■ 〔Noncurrent assets〕 Construction in progress +419M, Investment securities +390M

■ 〔Current liabilities〕 Notes and accounts payable -109M, Income taxes payable -78M

■ 〔Net assets〕 Retained earnings +444M, Treasury stock -34M,

Valuation difference on available-for-sale securities +229M



Consolidated Balance Sheet

17

Full-year FY2013

Consolidated Forecasts

18

+20.0%

+2.9%

+7.2%

+0.7%

+2.1%

+2.5%

Y-o-Y

% change

755

1,359

1,276

4,438

5,714

38,615

2H Forecast

Oct.-Mar.

+3.1%2,565

+3.3%1,205

Ordinary income

+12.9%

+6.2%

+2.0%

+2.8%

+1.6%

Y-o-Y

% change

+6.1%

+5.0%

+3.2%

+3.6%

+0.6%

Y-o-Y

% change

699

1,073

4,431

5,505

37,634

1H Actual

Apr.-Sep.

1,455

2,350

8,870

11,220

76,250

Full-year

Forecast

Apr.-Mar.

FY13

Gross profit

Net income

Operating income

SG & A Expenses

Net sales



Consolidated Forecast 2H・Full-year

19

+12.4%4,942

+1.5%2,476

+25.9%2,466

Housing Equipment

+4.3%4,944

+0.2%2,497

+8.9%2,447

Machine and Toolsfor Automotive

(13.9)%772

(7.8)%438

(20.8)%333

Operating income

+8.3%173

(1.3)%96

+23.2%77

Overseas

(2.0)%27,435

+0.5%13,832

(4.4)%13,603

Industrial Equipment

+9.0%813

+0.6%383

+17.7%430

Other

+0.6%

Y-o-Y

% change

19,284

2H Forecast

Oct.-Mar.

+0.7%

Y-o-Y

% change

38,309+0.8%

19,025Net sales

Y-o-Y

% change

1H Actual

Apr.-Sep.

Full-year

Forecast

Apr.-Mar.

Equipment and

Tools Business



Consolidated Forecast by SegmentEquipment and Tools Business

20

(29.7)%270

(13.3)%167

(46.2)%103

Operating income

(1.8)%10,981

+12.5%5,698

(13.7)%5,283

Machine Tool

(24.3)%2,275

(34.1)%1,146

(10.9)%1,129

Factory Automation

+0.6%

Y-o-Y

% change

6,844

2H Forecast

Oct.-Mar.

(6.6)%

Y-o-Y

% change

13,256(13.2)%

6,412Net sales

Y-o-Y

% change

1H Actual

Apr.-Sep.

Full-year

Forecast

Apr.-Mar.

Machine and

Facility Business



Consolidated Forecast by SegmentMachine and Facility Business

21

+34.5%1,265

+10.1%643

+74.7%621

Operating income

+8.8%19,949

+6.0%9,987

+11.7%9,962

Steel FrameBuilding Supplies

+5.0%4,734

+9.9%2,500

(0.1)%2,234

Piping Products

+6.8%

Y-o-Y

% change

12,487

2H Forecast

Oct.-Mar.

+8.0%

Y-o-Y

% change

24,683+9.3%

12,196Net sales

Y-o-Y

% change

1H Actual

Apr.-Sep.

Full-year

Forecast

Apr.-Mar.

Construction and Piping Products Business



Consolidated Forecast by SegmentConstruction and Piping Products Business

22

47.8310

22

3740 41

27.5

10 10

100.3088.1078.8237.55(89.58)109.64

163.92199.86184.37113.0022.5

20 25.525.525.525.5

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13(Forecast)

（Yen）EPS DividendStable payment Dividend payout ratio 20% Dividend payout ratio 25%


Dividend Forecast

＜Dividend Policy＞■ Dividend payout ratio; Consolidated net income×25%

■ In case that the annual dividend per share based on the above dividend payout ratio isless than ¥10; Annual dividend per share ¥10

23

Future Trends

Statistics and Related Business


Capital investmentCapital investment plan in FY13：

Large companies up 5.1％, Overall up 3.3％（Tankan survey in Sep.）

Orders received for machine tools （Domestic）：

Jul.-Sep. up 18.9％ Y-o-Y

Building starts by floor area （non-residential building）：

Apr.-Sep. up 12.5% Y-o-Y

Production

Moderate increase expected based on improvement in exports and steady domestic demand （Monthly economic report in Oct.）

Projected production index of manufacturing industry：

Oct. up 4.7%, Nov. down 1.2% （vs. previous month）

Housing construction

Housing Starts：Apr.-Sep. up 12.6% Y-o-Y

⇒Machine Tool Business

⇒Steel Frame Building

Supplies Business

⇒Industrial Equipment

Business

⇒Housing Equipment

Business

Projected production index of transport equipment：Oct. up 2.4%, Nov. up 1.3% （vs. previous month）

⇒Machine and Tools

for Automotive Business

Upward trend to be continued for a while due to improvement in

employment and income situations and the last-minute surge in demand （Monthly economy report in Oct.）

24

Business Strategy

25

Drawing out potential needsPotential needs of users, Proposing improvement in convenience


�Support tool for machine design

�Convert components and parts to CAD data

�Making lists of components and partsused in the design

�Automatic quotation and orders

Users：Improvement in convenience and productivity

(design and production engineering section, purchasing section)

Advantages for dealers：Differenciation by introduction of EG PARTSand improvement in productivity

Launch in 2014（Scheduled）

Business StrategyEquipment and Tools Business

26

⇒Proposing schemes which end-users are not aware of

◆ 「Easy Problem-Solving Catalog」 Environmental measure series vol.1-6


◆ Providing overseas original products⇒Providing high cost-competitive products which end-users are not aware of

ＥＸ．Machine vise (Taiwan)⇒Realizing the quality equivalent to that of domestic products at a low price

ＥＸ．Processed products⇒Productivity improvementat production sites by lobar-saving in working process


Drawing out potential needs

1. Energy-saving

factory air

2. Energy-saving

factory electricity

3. Energy-saving

factory hydraulic

pressure

4. Safety and health

in factory

5. Productivity improvement in factory（machining series） 6. Productivity

improvement in factory （Industrial built-in equipment series）

27

Reinforcing wholesale functionBoosting convenience for sales dealers

Web order system

ＴＯＫＵ Mori CatalogFocusing on consumable supplies and PB products


Movie demonstration on tablet deviceApprox. 150 movies with a scenario availableMovie icon

●Cost advantage

●Convenience

●Labor savingＥＤＩ


28

Reinforcing core fields●Machining Exhibition； Proposing productivity improvement and cost cutting to end-users

by comprehensive solution including latest machines and peripherals


●Solution Fair；Proposing solution method and supplies focusing on environment and saving energy

●Mechatronics System Exhibition （Mechatronics solution exhibition）；

Solution exhibition focusing on Industrial built-in equipments

Business StrategyMachine and Facility / Equipment and Tools Business

Practicing marketing-style proposals


Business Strategy

Overseas strategyOverseas business development； Established local companies as one of the service menus for users

・China：Suzho Retra Co.,Ltd.（Suzhon, Jiangsu）

Business Outline

●Sale of machine tools and peripheral equipments

●Sale of production automation related equipments

●Import, export and sale of supplies and equipments

・Thailand： Retra Engineering (Thailand ) Co., Ltd. （Chonburi）


Business StrategyConstruction and Piping Products Business

Enhancing one-stop shop functionAiming for enhancing a service system selected by users based on “Convenience” and “Credit”

Convenience

Credit

●Location：Near points of demand（Production, distribution, sales）

●Inventory： Standard items, immediate delivery possible

●Network：In-house delivery nationwide

●Product diversity：In-house production and

domestic and overseas supplier network

For customers “Just what is needed, only when needed, where needed and only in the amount needed”

●Quality：Quality control system for in-house productsand import items

●Responsibility：Fulfilling responsibilities to providersand suppliers

●Management：Original risk control system

●Specialty：Utilizing knowledge and know-how as a specialized company

To concerned parties “Pursuing convenience”

312007年年年年3月期月期月期月期決算決算決算決算

www.furusato.co.jp/ir/

1-2-10, Minamishin-machi, Chuo-ku, Osaka

540-0024, Japan

ＴＥＬ：０６－６９４６－９６０８（Direct）

ＦＡＸ：０６－６９４６－９７８０

E-mail : [email protected]


Forward-Looking Statements

This material is solely for information purposes and should not be construed

as a solicitation. Although this material (including the financial forecasts )

has been prepared based on information currently available, Furusato does

not take responsibilities for any errors and omissions pertaining to the

inherent risks and uncertainties of the material presented.

We ask that you exercise your own judgment in assessing this material.

Furusato is not responsible for any losses that may arise from investment

decisions based on the forecasts and other numerical targets contained

herein.

This presentation material is copyrighted by Furusato Industries, Ltd.

Contact：Corporate Planning Division

FURUSATO INDUSTRIES, LTD.

32

+52.1%5.6%686

4.0%450

Ordinary income

248

355

2,068

2,424

11,167

1H

FY12

2.2%

3.2%

18.5%

21.7%

100.0%

% of sales

+64.4%

+74.7%

+2.6%

+13.2%

+9.4%

Y-o-Y

% change

407

621

2,123

2,744

12,212

1H% of sales

22.5%Gross profit

Net income

Operating income

SG & A Expenses

Net sales

3.3%

5.1%

17.4%

100.0%

FY13


Non-consolidated ResultsFurusato Industries


33

(33.4)%1.7%402

2.5%604

Ordinary income

343

524

2,025

2,549

24,594

1H

FY12

1.4%

2.1%

8.2%

10.4%

100.0%

% of sales

(35.6)%

(36.6)%

+1.7%

(6.2)%

(4.1)%

Y-o-Y

% change

221

332

2,060

2,392

23,588

1H% of sales

10.1%Gross profit

Net income

Operating income

SG & A Expenses

Net sales

0.9%

1.4%

8.7%

100.0%

FY13


Non-consolidated ResultsG-net


34

+18.4%5.4%132

5.0%112

Ordinary income

66

88

252

341

2,250

1H

FY12

3.0%

3.9%

11.2%

15.2%

100.0%

% of sales

+19.2%

+17.7%

+4.6%

+8.0%

+8.8%

Y-o-Y

% change

79

104

264

369

2,448

1H% of sales

15.1%Gross profit

Net income

Operating income

SG & A Expenses

Net sales

3.3%

4.3%

10.8%

100.0%

FY13



Non-consolidated ResultsGifu Shoji

2q fy2013 earnings presentation - furusato › wp-content › uploads › 2016 › 02 › pm... ·...

Documents