2q fy2016 earnings presentation - furusato2q fy2016 earnings presentation november 2016 furusato...

2Q FY2016Earnings PresentationNovember 2016

Furusato Industries, Ltd.

2

Operating Income

23.416.1

7.0 5.9 7.713.5

8.5 7.8 4.9 1.18.1

19.8 23.8 24.6 20.728.2

1.37.8 9.4

16.93.57.6

17.4

21.925.4

20.910.1

4.3

11.1 10.6

11.2

3.11.5

0.8

2.0 2.1

2.4 2.33.4

3.5

10 .63 .6

0 .0

15.7

38.0

46.850.9

43.137.9

7 .6

22 .1 22.1

31.0 32 .735.5

12.81.11.217.2 15.1

14.311.8 15.9

Forecast

31.9

92/3 93/3 94/3 95/3 96/3 97/3 98/3 99/3 00/3 01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3

Furusato G-net Gifu Shoji Total

Net Sales

234 211 175 176 194 225 207 167 166 185 166 155 166 205 223 233 223 241152 159 170 183 213

613 25 38 46 46

34 37 41 4551

484379 364

451

533599

641 625507

331415

487 487517

61

46

27

39

4754

232227 229

6356 60

610552

616

6054

46

58

Forecast

947

432

948876

823750736

644

537

831

920903

841

747

620

518545

92/3 93/3 94/3 95/3 96/3 97/3 98/3 99/3 00/3 01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3

Steel Frame Building Supplies Business Piping Products Business G-net Gifu Shoji Total

Copyright© Furusato Industries, Ltd. All Rights Reserved

-7.8

Net Sales and Operating Income Trend

（Non-consolidated base，but total net sales after FY2000 on consolidated base）

＊G-net was consolidated from the second half of FY00 （¥24.6B）, Gifu Shoji was consolidated from the second half of FY07 （¥3.2B）

Always Pursuing the Best Service

Rounded down to the nearest 100 million yen

（Non-consolidated base，but total net sales after FY2000 on consolidated base）

3

(14.8)％

(18.9)％

(19.2)％

+2.1％

+0.1Ｐ

(3.1)％

(3.4)％

Y-o-Y

% Change

918

1,402

1,267

4,934

14.1％

6,202

44,059

Apr.-Sept.

Result

105.6％

103.9％

103.5％

99.1％

+0.2Ｐ

99.9％

98.7％

v.s.

Forecast

623

956

895

2,459

14.6％

3,354

23,008

July-Sept.

Result

13.9％+0.5ＰGross profit margin

(7.2)％

(10.3)％

(10.0)％

+1.2％

(2.0)％

(4.9)％

Y-o-Y

% Change

870

1,350

1,225

4,980

6,205

44,650

Apr.-Sept.

Forecast

Ordinary income

ＦＹ16

Gross profit

Net income attributabie

to owners of parent

Operating income

SG&A expenses

Net sales




Consolidated Financial Summary

4

100.8％2,930+3.7％2,952+6.3％1,551Piping Products

(3.4)％

(2.0)％

(0.9)％

(28.3)％

(9.8)％

(13.8)％

(31.8)％

+4.5％

+3.8％

(0.6)％

(0.7)％

Y-o-Y

% Change

44,059

11,122

14,075

1,460

6,592

8,053

603

2,706

2,823

15,796

21,930

Apr.-Sept.

Result

98.7％

101.1％

101.0％

85.9％

104.6％

100.7％

73.6％

106.1％

99.1％

95.7％

96.5％

v.s.

Forecast

11,000(1.1)％5,924Steel Frame Building Supplies

6,300(14.1)％3,576Machine Tool

2,850(2.4)％1,379Machine and Tools for Automotive

16,500(1.1)％8,044Industrial Equipment

23,008

7,476

889

4,466

287

1,354

11,065

July-Sept.

Result

820(48.4)％Overseas ・ Others

(4.9)％

+0.4％

(22.2)％

(15.8)％

+0.4％

(3.4)％

Y-o-Y

% Change

44,650

13,930

1,700

8,000

2,550

22,720

Apr.-Sept.

Forecast

Construction・PipingProducts

FY16 Net Sales

Housing Equipment

Total sales

Factory Automation

Machine・Facility

Equipment・Tools




Net Sales by Segment

5Copyright© Furusato Industries, Ltd. All Rights Reserved

Industr ial Equ ipment

8,72

6

7,9

53

8,1

30

7,7

60

(1.1)%8,044

(0.1)%7,752

１Ｑ２Ｑ３Ｑ４Ｑ

16/3 17/3

Mach ine and Tools for Automot ive

1,5

89

1,551

1,413

1,305

(2.4)%1,379

+10.6%1,444

Housing Equ ipment

1,4

60

1,5

00

1,34

9

1,23

9

+0.4%1,354

+9.1%1,352

Overseas Other273362

556

327

(48.4)%287

(3.5)%316

+3.8％

(4.5)％

+0.1％

(9.1)％


Rounded down to the nearest million yen(%=Y-o-Y % change)

Segment Breakdown: Sales Equipment and Tools Business

6

Factory Automat ion (Orders)

659

909

940

765

(14.9)%800(23.3)%

586


Mach ine Too l (Net Sales)

4,7

46

4,7

27

4,1

63

3,1

45

(14.1)%3,576

(4.1)%3,015


16/3 17/3

Factory Automat ion (Net Sales)

7878

34

1,1

44

891

(22.2)%889(36.0)%

570

Mach ine Tool (Orders)

3,715

3,6654,3

85

4,3

75

(5.8)%4,132

+3.3%4,517

+18.6％

+55.9％



Segment Breakdown: Sales and OrdersMachine and Facility Business

7

Stee l Frame Bu i lding Suppl ies

5,327

6,2

11

5,9

87

5,3

62

(1.1)%5,924

(3.1)%5,198


16/3 17/3


Stee l Frame (In-house)

1,2

861,5

42

1,4

57

1,321

(3.3)%1,408(6.8)%

1,230

Piping Product ion

1,5

44

1,6

36

1,4

59

1,3

87

+6.3%1,551

+1.0%1,401

Stee l Frame (Purchasing)

4,04

0

4,66

9

4,53

0

4,04

0

(0.3)%4,515

(1.8)%3,967

+14.0％

+14.4％

+13.8％

+10.7％



Segment Breakdown: SalesConstruction and Piping Products Business

8

99.9％6,205(3.1)％6,202(2.0)％3,354Total gross profit

(0.1)Ｐ21.0％(0.8)Ｐ20.9％±0Ｐ21.7％%

+0.1Ｐ

(4.5)％

+0.4Ｐ

(10.0)％

+0.3Ｐ

+1.4％

Y-o-Y

% Change

14.1％

2,941

8.7％

697

11.8％

2,582

Apr.-Sept.

Result

+0.2Ｐ

100.7％

+0.6Ｐ

108.1％

+0.2Ｐ

97.8％

v.s.

Forecast

14.6％

1,622

9.1％

407

12.0％

1,325

July-Sept.

Result

11.6％+0.2Ｐ%

+0.5Ｐ

+0.2％

+0.6Ｐ

(9.4)％

(2.2)％

Y-o-Y

% Change

13.9％

2,920

8.1％

645

2,640

Apr.-Sept.

Forecast

Construction・Piping Products

FY16

Gross Profit

%

%

Machine・Facility

Equipment・Tools



Rounded down to the nearest million yen

Gross Profit by Segment

9

100.1％4,210+1.7％4,214+1.5％2,097General and administrative ex.

99.1％4,980+2.1％4,934+1.2％2,459Total SG&A Ex.

(1.2)％

+3.0％

+4.4％

Y-o-Y

% Change

1,216

2,997

720

Apr.-Sept.

Result

101.0％

99.8％

93.6％

v.s.

Forecast

618

1,479

361

July-Sept.

Result

(1.1)％

+2.6％

(0.3)％

Y-o-Y

% Change

1,205

3,005

770

Apr.-Sept.

Forecast

・Other general andadministrative expenses

FY16

SG&A Expenses

・Personnel expenses

Selling expenses


106.5％480+9.8％511+6.9％263Machine・Facility

+1.9％

+0.9％

Y-o-Y

% Change

2,394

2,083

Apr.-Sept.

Result

98.7％

98.5％

v.s.

Forecast

1,205

1,020

July-Sept.

Result

+2.1％

(1.0)％

Y-o-Y

% Change

2,425

2,115

Apr.-Sept.

Forecast

FY16 SG&A Expenses

by Segment

Construction・

Piping Products

Equipment・Tools



SG&A Expenses Breakdown

10

103.5％1,225(19.2)％1,267(10.0)％895Total gross profit

+0.3Ｐ3.6％(1.2)Ｐ3.9％(0.3)Ｐ5.6％%

(0.5)Ｐ

(25.0)％

(1.0)Ｐ

(39.8)％

+0.1Ｐ

+3.6％

Y-o-Y

% Change

2.9％

547

2.3％

186

2.3％

499

Apr.-Sept.

Result

+0.2Ｐ

110.6％

+0.2Ｐ

112.8％

+0.2Ｐ

95.1％

v.s.

Forecast

3.9％

417

3.2％

143

2.8％

304

July-Sept.

Result

2.3％±0Ｐ%

(0.2)Ｐ

(4.7)％

(0.6)Ｐ

(29.2)％

(5.8)％

Y-o-Y

% Change

2.7％

495

2.1％

165

525

Apr.-Sept.

Forecast

Construction・Piping Products

FY16

Operating Income

%

%

Machine・Facility

Equipment・Tools




Operating Income by Segment

11

-+32

32Gain on sales of property,

plant and equipment

32Extraordinary income

+20.1％+29

+5Sales discount

179Non-operating expenses

Income taxes

Loss on valuation of

investment securities

Purchase discount

Item

Major item

(128)

1

+0

Change

(158)

(287)

(6)

(326)

+4

(301)

Change

Y-o-Y

918

1,433

1

1,402

313

1,267

Result

Apr.-Sept.

(16.7)％Income before income taxes

% Change

+1.5％Non-operating income

Net income attributableto owners of parent

Extraordinary loss

Ordinary income

Operating income

(14.8)％

(78.1)％

(18.9)％

(19.2)％




Consolidated Operating～Net Income

12

11,18010,105

(738)+505

+1,308

Beginning Operating CF Investing CF Financing CF FH end


財務キャッシュフロー長期借入金返済－80配当金支払－658



Consolidated Cash Flow

Investing CFProceeds from withdrawal of

time deposits +1,052Purchase of property, plant and equipment (393)Proceeds form sales of property,plant and equipment +89Payment for removal ofnoncurrent assets (30)Payments for guarantee deposits (37)

Cash Flow major items

Operating CFIncome before income tax +1,433Depreciation and amortization +262Decrease in notes and accounts

receivable +1,570Decrease in notes and accounts

payable (1,427)Income taxes paid (684)

Financing CFRepayments of long-time loans payable (80)Cash dividends paid (658)




146 179

1,190

735800

318 357281 323

392 450

1,663

7,016

8,439

9,393

11,170 10,957

0

500

1,000

1,500

2,000

2,500

12/3 13/3 14/3 15/3 16/3 17/3(Forecast)0

2,500

5,000

7,500

10,000

12,500Capital investmentDepreciation and amortizationCash and deposits

Capital Investment Depreciation and Amortization

＊Cash and deposits at the year-end



Unit：Yen

78.8288.10

97.68

153.81

166.69155.88

20.0 22.529.5

46.5 50.5 47.0

25.4% 25.5%

30.2% 30.2% 30.2%30.3%

0.00

100.00

200.00

12/3 13/3 14/3 15/3 16/3 17/3(Forecast)15.0%

20.0%

25.0%

30.0%

EPS Dividend Dividend payout ratio

Returns to Shareholders

15

(14.8)%

(18.9)%

(19.2)%

+2.1%

+0.1P

(3.1)%

(3.4)%

% Change

Y-o-Y

918

1,402

1,267

4,934

14.1%

6,202

44,059

Result

Apr.-Sept.

±0P14.0%(0.1)P13.9%Gross profit margin

+0.2%

(3.2)%

(3.3)%

+4.3%

+2.1%

+2.9%

% Change

Y-o-Y

2,260

3,460

3,190

10,060

13,250

94,700

Forecast

Full-year

1,341

2,057

1,922

5,125

7,047

50,640

Forecast

Oct.-Mar.

(10.2)%Ordinary income

% Change

(0.4)%Gross profit

Net income attributableto owners of parent

Operating income

SG&A expenses

Net sales

FY16

(6.5)%

(10.3)%

+3.2%

(0.2)%

Y-o-Y




Earnings Forecast Policy


+2.9%33,500+6.1%17,703(0.6)%15,796Industrial Equipment

+2.4%6,000+1.1%3,176+3.8%2,823Machine and Tools

for Automotive

(0.9)%5,500(5.6)%2,793+4.5%2,706Housing Equipment

(6.6)%1,420(28.5)%816(31.8)%603Overseas・Others

+3.6%

+0.9%

+0.3P

+1.4%

(0.7)%

% Change

Y-o-Y

499

2,083

11.8%

2,582

21,930

Result

Apr.-Sept.

±0P11.8%(0.1)P11.9%%

+1.1%

+4.1%

+3.3%

+4.6%

% Change

Y-o-Y

1,245

4,245

5,490

46,420

Forecast

Full-year

745

2,161

2,907

24,489

Forecast

Oct.-Mar.

% ChangeEquipment・Tools

+2.4%Gross profit

Operating income

SG&A expenses

Net sales

FY16

+2.1%

+2.5%

+2.0%

Y-o-Y





(5.0)%15,940(1.3)%9,347(9.8)%6,592Machine Tool

(7.6)%3,380+18.4%1,919(28.3)%1,460Factory Automation

(39.8)%

+9.8%

+0.4P

(10.0)%

(13.8)%

% Change

Y-o-Y

186

511

8.7%

697

8,053

Result

Apr.-Sept.

(0.1)P8.0%(0.5)P7.5%%

(4.0)%

(5.3)%

(4.7)%

+1.5%

% Change

Y-o-Y

580

965

1,545

19,320

Forecast

Full-year

393

453

847

11,266

Forecast

Oct.-Mar.

% ChangeMachine・Facility

(7.1)%Gross profit

Operating income

SG&A expenses

Net sales

FY16

(19.3)%

+2.2%

(5.5)%

Y-o-Y





(1.0)%22,660+0.0%11,537(2.0)%11,122Steel FrameBuilding Supplies

+4.5%6,300+5.2%3,347+3.7%2,952Piping Products

(25.0)%

+1.9%

(0.8)P

(4.5)%

(0.9)%

% Change

Y-o-Y

547

2,394

20.9%

2,941

14,075

Result

Apr.-Sept.

(0.2)P21.5%+0.3P22.0%%

(8.1)%

+5.7%

+2.3%

+1.1%

% Change

Y-o-Y

1,265

4,950

6,215

28,960

Forecast

Full-year

717

2,555

3,273

14,884

Forecast

Oct.-Mar.

% ChangeConstruction・

Piping Products

(1.0)%Gross profit

Operating income

SG&A expenses

Net sales

FY16

(16.2)%

+3.8%

+0.2%

Y-o-Y





Reference



Industrual Production

99.1

95.994.6

96.197.8

99.6

101.9

98.897.4 98.2

99.3

97.196.1 96.3

97.4

99.0100.7 100.8

103.6 104.2

101.399.6

100.5

97.098.0

94.1

96.097.697.2

98.398.798.4 99.1

106.6107.9

93.4

12/4-6 12/7-9 12/10-

12

13/1-3 13/4-6 13/7-9 13/10-

12

14/1-3 14/4-6 14/7-9 14/10-

12

15/1-3 15/4-6 15/7-9 15/10-

12

16/1-3 16/4-6 16/7-9

Industrial Production Transport Equipment

New Construction Starts of Houses

106.2

111.8 112.9

94.6

107.6 106.2

99.3

107.1104.9105.5

113.3

86.286.590.7

105.1

103.4

98.9

115.0

12/4-6 12/7-9 12/10-

12

13/1-3 13/4-6 13/7-9 13/10-

12

14/1-3 14/4-6 14/7-9 14/10-

12

15/1-3 15/4-6 15/7-9 15/10-

12

16/1-3 16/4-6 16/7-9

New Construction starts of houses

Year 2010＝100

Reference: Industrial Production andNew Construction Starts of Houses

Y-o-Y ％


（Preliminary）


Machune Tool Orders Received Y-o-Y Trend

90.0

137.7

71.6

86.579.6

94.9

141.5

116.1

93.2

128.7

140.5

86.994.8

118.9

122.0121.2129.1

86.8

125.0

85.379.5

74.3

74.296.8

69.9

117.2106.2

82.1

84.872.6

141.1

101.2

145.0142.1

92.781.7

12/4-6 12/7-9 12/10-

12

13/1-3 13/4-6 13/7-9 13/10-

12

14/1-3 14/4-6 14/7-9 14/10-

12

15/1-3 15/4-6 15/7-9 15/10-

12

16/1-3 16/4-6 16/7-9

Domestic Order Oversea Order

Machine Tool Orders Received

1,0

17

928

832

849

884

1,1

04

1,1

69

1,0

61

1,1

42

1,3

38

1,4

21

1,3

66

1,6

16

1,5

54

1,3

25

1,2

97

1,2

85

1,3

99

2,1

90

2,1

65

1,8

33

1,5

80

1,8

57

1,7

76

1,9

47

2,2

46

2,5

57

2,5

77

2,7

48

2,6

33

2,4

76

1,9

12

1,9

21

1,8

86

1,8

40

1,6

53

12/4-6 12/7-9 12/10-

12

13/1-3 13/4-6 13/7-9 13/10-

12

14/1-3 14/4-6 14/7-9 14/10-

12

15/1-3 15/4-6 15/7-9 15/10-

12

16/1-3 16/4-6 16/7-9

Domestic Order Oversea Order


Y-o-Y％

Unit：¥100M

Reference: Machine Tool Orders

22

Steel Product Price (H-beam)

76,00080,000

99,000

74,00068,000

82,000 80,000

73,000 71,000

63,000

75,000

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

H-beam


Steel Frame Used for Buildings

161 158 146 119 99 97 102 119 127 119 112

191 220164

95 102 113 114138 129 132 131

197118 165

99 113 111 122140 125 131 134

186

158141

97 106 105121

136 127 120

736653 616

410 420 426459

532 508 504

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

1Q 2Q 3Q 4Q Calendar year


Unit：10Kt

Reference: Steel Frame Building SuppliesDemand and Price Trend

23

%changeVs. FY15E

Change

FY16

２ＱE

Furusato

（B/S）

(1.6)％(124)7,537Liabilities

(1.1)％(336)29,799Total assets

(0.9)％(211)22,261Net assets

(16.3)％(82)425Net income

（+0.1Ｐ）

(186)

(182)

+44

(137)

(113)

Change

Y-o-Y

74.7％

633

547

2,394

2,941

14,093

２Ｑ

FY16

(22.8)％Ordinary income

%change（P/L）

(4.5)％Gross profit

Net assets to total assets

Operating income

SG&A expenses

Net sales

Furusato

(25.0)％

+1.9％

(0.8)％


Always Pursuing the Best Service Reference Non-consolidated ResultsーFurusato


24

%changeVs. FY15E

Change

FY16

２ＱE

G-net

（B/S）

(9.1)％(1,216)12,077Liabilities

(3.2)％(823)25,195Total assets

+3.1％+39313,118Net assets

(14.4)％(66)394Net income

（+3.2Ｐ）

(125)

(107)

+55

(52)

(1,209)

Change

Y-o-Y

52.1％

614

543

2,308

2,852

28,213

２Ｑ

FY16

(17.0)％Ordinary income

%change（P/L）

(1.8)％Gross profit


Operating income

SG&A expenses

Net sales

G-net

(16.5)％

+2.4％

(4.1)％


Always Pursuing the Best Service Reference Non-consolidated ResultsーG-net


25

%changeVs. FY15E

Change

FY16

２ＱE

Gifu Shoji

（B/S）

(21.5)％(405)1,478Liabilities

(5.8)％(276)4,493Total assets

+4.5％+1293,015Net assets

+4.1％+4112Net income

（+6.6Ｐ）

+4

+1

+8

+9

+105

Change

Y-o-Y

67.1％

173

141

285

427

2,824

２Ｑ

FY16

+2.9％Ordinary income

%change（P/L）

+2.4％Gross profit


Operating income

SG&A expenses

Net sales

Gifu Shoji

+1.4％

+2.9％

+3.9％


Always Pursuing the Best Service Reference Non-consolidated ResultsーGifu Shoji


26

Corporate Planning Division

ＴＥＬ：０６－６９４６－９６21

ＦＡＸ：０６－６９４６－1934

E-mail ：[email protected]


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.

FURUSATO INDUSTRIES, LTD.


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