fy2018 results presentation - kitz · sales sales increased compared with the previous term due to...

©2019 KITZ CORPORATION All Rights Reserved

FY2018 Results Presentation

KITZ CORPORATION

May 2019

The forecast data presented herein reflects assumed results based on conditions that are subject to change. KITZ Corporation does not make representations as to, or warrant, in whole or in part, the attainment or realization of any of the forecasted results presented in this document. Numerical figures presented herein are rounded down.

©2019 KITZ CORPORATION All Rights Reserved ｜2

FY2018 Results

FY2017 Results

FY2018 Plan

FY2018 Results

YoY Plan vs Results

Sales 124,566 136,000 136,637 12,071 9.7% 637 0.5%

Valve Manufacturing 98,162 109,600 109,969 11,806 12.0% 369 0.3%

Brass Bar Manufacturing 23,535 23,400 23,643 107 0.5% 243 1.0%

Operating Income 10,117

8.1%

11,700

8.6%

11,713

8.6% 1,595 15.8% 13 0.1%

Valve Manufacturing 12,798 15,000 14,938 2,140 16.7% (61) (0.4%)

Brass Bar Manufacturing 699 300 287 (412) (58.9%) (12) (4.3%)

Ordinary Income 9,733 11,600 11,883 2,150 22.1% 283 2.4%

Net income attributable to owners of the parent

6,518 5,300 5,625 (892) (13.7%) 325 6.1%

Yen / US Dollar 112.04 109.50 110.37

Yen / Euro 127.19 128.00 130.00

Electrolytic Copper, Yen/ton 757,000 745,000 748,000

(Millions of Yen)

*Note : Total Sales and Operating Income include other segment and adjustment..


Valve Manufacturing Business – Domestic Sales

Demand of valves for building facilities was strong as deliveries for redevelopment projects in Tokyo Metropolitan area continued. Penetration of price revision in the market progressed and had positive effect on both sales and profit. Demand of valves for water works continued weak especially in Tokyo. Trend of order volume of valves for semiconductor manufacturing equipment changed downward in Q3, sale dropped in Q4. As for industrial valve, sales increased thanks to capex increase by end users of various industries (chemical, food, medical etc.). They aggressively invest especially for expansion of production capacity of plant.

(Millions of Yen)

FY2017

Results Q1 Q2 Q3 Q4

FY2018

Results YoY

Domestic Total 64,200 16,800 17,500 18,300 16,700 69,400 5,200 8.0%

Building Facilities 27,300 7,300 7,300 7,500 7,200 29,300 2,000 7.3%

Water (supply, sewer, industrial filter)

8,000 1,500 2,000 2,400 2,000 7,900 (100) (1%)

Semiconductor 8,000 2,300 2,300 2,400 1,700 8,600 600 7.5%

Machinery

20,500

1,800 1,800 2,000 1,800

23,600 3,100 15.1%

Petrochemical 1,700 1,700 1,700 1,700

General Chemical 700 700 700 700

Food and Paper 600 600 600 600

Gas, Power Plant 600 600 600 600

Project(LNG, etc.) 300 600 400 500


Valve Manufacturing Business – Overseas Sales

As SPE manufacturers decided to postpone large investment, volume of order of valves for semiconductor from them decreased especially in Korea. In China, demand of commercial valves continued strong especially for data centers. In Middle East, sales increased due to deliveries of valves for large project. In Americas and Europe, distributors began to order to increase their inventories.

FY2017

Results Q1 Q2 Q3 Q4

FY2018

Results YoY

Overseas Total 34,000 9,000 10,600 10,500 10,300 40,600 6,600 19.5%

ASEAN, Korea and other 13,100 3,300 3,100 3,400 4,400 14,200 1,100 8.3%

(400) (16.7%)

China (incl. HK, Taiwan)

6,500 1,500 2,100 2,300 1,900 7,900 1,300 20.0%

(for semiconductor) 200 10.0%

Middle East 1,200 500 1,800 1,200 200 3,600 2,400 200.0%

Asia Total 20,800 5,300 6,900 6,900 6,500 25,600 4,800 23.0%

Americas (North and South America)

10,000 2,800 2,700 2,800 3,000 11,300 1,400 13.0%

Europe, etc. 3,000 900 1,000 700 800 3,600 600 20.0%

(Millions of Yen)


Valve Manufacturing Business – Operating Income

FY2017 Results

FY2018

Plan

FY2018

Results YoY Plan vs Results

Sales 98,162 109,600 109,969 11,806 12.0% 369 0.3%

Operating

Income 12,798 15,000 14,938 2,140 16.7% (61) (0.4%)

114.4億円 127.9億円

(Millions of Yen)

(Millions of yen)

12,798 14,938

FY2017 FY2018

Graph1

FY2017FY2017FY2017FY2017

Sales IncreaseSales IncreaseSales IncreaseSales Increase

Cost reductionCost reductionCost reductionCost reduction

Material CostMaterial CostMaterial CostMaterial Cost

SG&ASG&ASG&ASG&A

ForexForexForexForex

FY2018FY2018FY2018FY2018

FY2017 Sales Increase Cost reduction Material Cost SG&A Forex FY2018

余白

プラス

マイナス

Cost Reduction+1,300

Material Cost-150

SG&A-2,670

為替+4.5億円

Sales Increase+3,670

Forex-10

12800

12800

3670

0

16470

1300

0

17620

0

150

14950

0

2670

14940

0

10

14940

実績

値アタイ期首・期末キシュキマツ余白ヨハクプラスマイナス

FY201712,800.012,800.0

Sales Increase3,670.012,800.03,670.00.0

Cost reduction1,300.016,470.01,300.00.0

Material Cost-150.017,620.00.0150.0

SG&A-2,670.014,950.00.02,670.0

Forex-10.014,940.00.010.0

FY201814,940.014,940.0

実績


余白

プラス

マイナス

FY2017

2016年度


Material Cost-150

SG&A-2,670

為替+4.5億円


Forex-10

計画


FY201712,800.012,800.0

Sales Increase3,200.012,800.03,200.00.0

Cost reduction1,700.016,000.01,700.00.0

Material Cost-1,400.016,300.00.01,400.0

SG&A-2,500.013,800.00.02,500.0

Forex100.013,800.0100.00.0

FY201813,900.013,900.0

計画


余白

プラス

マイナス

FY2017

2016年度


Material Cost-1,400

SG&A-2,500

為替+4.5億円


Forex+100

Sheet2

Sheet3


Brass Bar Manufacturing Business

FY2017 Results

FY2018 Plan

FY2018 Results

YoY Plan vs Results

Sales 23,535 23,400 23,643 107 0.5% 243 1.0%

Operating Income 699 300 287 (412) (58.9%) (12) (4.3%)

Electrolytic Copper, Yen/ton 757,000 750,000 748,000

■Sales Sales increased compared with the previous term due to increase of sales volume. Copper price was on a rising trend in Q1, but changed downward trend from Q2. ■Operating Income Operating income decreased impacted by fluctuation in copper market.

Electric copper Trend (April 2015～March 2019）

400

500

600

700

800

900

15/4 15/7 15/1016/1 16/4 16/7 16/1017/1 17/4 17/7 17/1018/1 18/4 18/7 18/1019/1

¥1,000/ton

Brass products

(Millions of Yen)

19/3

Graph1

42095

42125

42156

42186

42217

42248

42278

42309

42339

42370

42401

42430

42461

42491

42522

42552

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42614

42644

42675

42705

42736

42767

42795

42826

42856

42887

42917

42948

42979

43009

43040

43070

43101

43132

43160

43191

43221

43252

43282

43313

43344

43374

43405

43435

43466

43497

43525

765

808

770

724

676

680

677

639

610

573

577

602

581

555

534

548

526

525

533

629

705

700

713

704

670

671

673

713

753

773

812

813

811

826

802

766

779

798

811

741

716

717

745

741

727

693

753

759

2016.4-2017.9

【銅建値】ドウタテネ

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5月ガツ42491555

6月42522534

7月42552548

8月42583526

9月42614525

10月42644533

11月42675629

12月42705705

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2月42767713

3月42795704

42826670

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42917713

42948753

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2016.4-2017.9

（千円/t）

2017年度当初計画前提： 680千円/t

下期前提： 760千円/t

2016年度実績

2017年度実績

2015.4-2017.12


2013201420152016

41365750732765581

41395772748808555

41426729741770534

41456728770724548

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41518754783680525

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42339610

42370573

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42430602

42461581

42491555

42522534

42552548

42583526

42614525

42644533

42675629

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42736700

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43435727月間平均ゲッカンヘイキン753

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43525759748

2015.4-2017.12

2013～2016


2013201420152016

41365750732765581

41395772748808555

41426729741770534

41456728770724548

41487745769676526

41518754783680525

41548749772677533

41579750828639629

41609785816610705

41640808746573

41671782724577

41699730763602

41730732

41760748

41791741

41821770

41852769

41883783

41913772

41944828

41974816

42005746

42036724

42064763

42095765

42125808

42156770

42186724

42217676

42248680

42278677

42309639

42339610

42370573

42401577

42430602

42461581

42491555

42522534

42552548

42583526

42614525

42644533

42675629

42705705

2013～2016

Sheet1


Other

FY2017 Results

FY2018 Plan

FY2018 Results

YoY Plan vs Results

Sales 2,867 3,000 3,025 157 5.5% 25 0.8%

Operating Income

(28) 50 90 118 - 40 80.4%

KITZ subsidiary Hotel Beniya Co., Ltd. operates a resort hotel in Suwa city, Nagano pref. Sales and operating income increased compared with the previous term due to increase in individual guests and cost reductions.

Hotel Beniya in Suwa city, Nagano pref.

(Millions of Yen)


Other income/expense Extra ordinary income / loss

FY2017

Results

FY2018

Results YoY Note

Operating Income 10,117 11,713 1,595

■Non-operating Income 793 1,017 223 Forex gain +122

■Non-operating Expense 1,177 847 (330) Forex loss (208), CB related expense (59)

Ordinary income 9,733 11,883 2,150

■Extraordinary income 883 12 (871) Gain on sales of investment securities (869)

■Extraordinary loss 502 2,787 2,285 Cephas Pipelines Corp. Goodwill impairment 2,485

Net Income before income taxes and minority interests

10,114 9,108 (1,006)

Income Taxes 3,513 3,345 (167)

Net Income 6,601 5,762 (838)

Net Income attributable to non-controlling interests

82 136 53

Net Income attributable to owners of the parent

6,518 5,625 (892)

(Millions of Yen)


Balance Sheet

Asset March

2018

March

2019 Variance Liabilities

March

2018

March

2019 Variance

Current Asset 77,400 71,226 (6,173) Current

Liabilities 24,078 22,227 (1,851)

Fixed Asset 56,145 60,430 4,284 Fixed

Liabilities 32,075 32,600 524

PPE 36,799 41,677 4,877 Total Liabilities 56,154 54,827 (1,326)

Intangible 8,951 9,420 468

Investment

and others 10,394 9,332 (1,061) Net Assets 77,391 76,829 (561)

Total Asset 133,545 131,657 (1,888) Total Liabilities

and Net Assets 133,545 131,657 (1,888)

Due to acquisition of Cephas Pipelines Corp. in April, inventories, PPE increased. Intangible asset also increased due to expenditure for new IT system. Cash in hand and in banks decreased due to acquisition of treasury stocks etc. Net Asset decreased due to acquisition of treasury stock, payment of dividend and forex change.

(Millions of Yen)


Cash Flows

March 2018 March 2019 YoY

Operating Cash Flow 6,941 10,069 3,128 45.1%

Investing Cash Flow (7,066) (9,264) (2,197) -

Free Cash Flow (125) 804 930 -

Financing Cash Flow 5,267 (9,702) (14,970) -

Cash and cash equivalents

at the end of the period 22,019 12,876 (9,143) -

Although the amount of inventory increased and the company paid corporate tax, Operating Cash Flow increased due to net income attributable to owners of the parent and depreciation expense. Investing Cash Flow decreased due to capital expenditure including new IT system and acquisition of Cephas Pipelines Corp.. Financing Cash Flow decreased due to repayment of debt, payment of dividend and acquisition of treasury stocks.

(Millions of Yen)


FY2018 Financial Highlight

Consolidated

FY2017

Result

FY2018

Result

Sales 124,566 136,637

Operating Income 10,117 11,713

Ordinary Income 9,733 11,883


6,518 5,625

Overseas Sales Ratio 27.9% 30.3%

Total Asset 133,545 131,657

Net Assets 77,391 76,829

Interest Bearing Debt 34,302 33,457

ROE 8.7% 7.4%

Equity Ratio 57.1% 57.4%

BPS(Yen) 782.98 793.74

EPS(Yen) 65.50 58.50

(Millions of Yen)


FY2019 Plan

FY2018 Results

FY2019 Plan

Q1+Q2 Plan

Q3+Q4

Plan Total

YoY

Sales 136,637 65,000 68,000 133,000 (3,637) (2.7%)

Operating Income 11,713

8.6%

3,600

5.5%

6,400

9.4%

10,000

7.5% (1,713) (14.6%)

Ordinary Income 11,883

8.7%

3,400

5.2%

6,300

9.3%

9,700

7.3% (2,183) (18.4%)

Net income attributable to owners of the parent

5,625

4.1%

2,200

3.4%

4,200

6.2%

6,400

4.8% 775 13.8%

ROE 7.4% - - 8.3% - -

EPS(Yen) 58.50 - - 68.49 9.99 17.1%

Yen / US Dollar 110.37 110.00

Yen / Euro 130.00 130.00

Electrolytic Copper, Yen/ton 748,000 750,000

(Millions of Yen)


FY2019 Plan (By Segment)

Sales

FY2018 FY2019

Q1+Q2 Results

Q3+Q4

Results Total

Q1+Q2 Plan

Q3+Q4

Plan Total

Valve 53,844 56,124 109,969 51,500 54,500 106,000

Brass Bar 12,237 11,405 23,643 11,800 12,200 24,000

Other 1,698 1,326 3,025 1,700 1,300 3,000

Total 67,781 68,856 136,637 65,000 68,000 133,000

Operating

Income

FY2018 FY2019

Q1+Q2 Results

Q3+Q4

Results Total

Q1+Q2 Plan

Q3+Q4

Plan Total

Valve 7,306 7,632 14,938 5,400 8,100 13,500

Brass Bar 191 95 287 200 300 500

Other 120 (30) 90 100 (50) 50

Adjustment (1,804) (1,797) (3,602) (2,100) (1,950) (4,050)

Total 5,813 5,900 11,713 3,600 6,400 10,000

(Millions of Yen)

(Millions of Yen)


Valve Manufacturing Business Environment

＜Domestic Market＞ For building facilities, delivery to large-scale projects in the metropolitan area and Tokyo

Olympics and Paralympics will continue. In the industrial valve market, maintenance and renewal demand will be the main focus of

the business. Expect some end-users make capital investment for domestic production. The semiconductor market is expected to remain sluggish, at least in the first half. The

market is expected to recover from the second half. If the market recovers, equipment manufacturers may place up-front orders to secure parts and materials.

＜Overseas Market＞ In the North American market, capital investment in Oil&Gas market improve with rising

crude oil price. Still uncertain the effect of US vs China trade war. In the ASEAN region, capital investment slightly decreasing. Elections are expected in

each country. In China, capital investment begin decreasing. Demand of building will peak out. On the

other hand, digital related industries continue to grow. In Europe, demand will be steady. Order for inventories from distributors resumed. Cannot expect any project in middle east.


Valve Manufacturing Business – Domestic Sales

FY2018

Results

FY2019

Plan YoY

Domestic Total 69,400 68,000 (1,400) (2.0%)

Building Facilities 29,300 29,800 500 1.7%

Water (supply, sewer, industrial filter)

7,900 7,900 - -%

Semiconductor 8,600 6,600 (2,000) (25.0%)

Machinery 7,400 7,500 100 1.3%

Petrochemical 6,800 6,900 100 1.5%

General Chemical 2,800 2,800 - -%

Food and Paper 2,400 2,500 100 4.2%

Gas 2,400 2,400 - -%

Project (LNG, etc) 1,800 1,600 (200) (11.0%)

(Millions of Yen)


Valve Manufacturing Business – Overseas Sales

FY2018

Results

FY2019

Plan YoY

Overseas Total 40,600 38,000 (2,600) (6.4%)

ASEAN, Korea and other 14,200 14,200 - -%

(600) (30%)

China 7,900 7,500 (400) (5.1%)

(600) (27.3%)

Middle East 3,600 1,400 (2,200) (61.1%)

Asia Total 25,600 23,100 (2,500) (9.7%)

Americas (North and South America)

11,300 11,500 200 1.7%

Europe 3,600 3,400 (200) (5.5%)

(Millions of Yen)


Valve Manufacturing Business OP YoY Change

FY2018 Results

FY2019 Plan

YoY

Operating Income 14,938 13,500 (1,438) (9.6%)

135.0億円

(Millions of Yen)

FY2018 FY2019

Cost Reduction+1,500 Material Cost

+40

SG&A-2,340

Sales Decrease-650

Forex+12

0

5,000

10,000

15,000

20,000

25,000

(Millions of yen)

14,938 13,500

Graph1

FY2018FY2018FY2018FY2018

Sales IncreaseSales IncreaseSales IncreaseSales Increase

Cost reductionCost reductionCost reductionCost reduction

Material CostMaterial CostMaterial CostMaterial Cost

SG&ASG&ASG&ASG&A

ForexForexForexForex

FY2019FY2019FY2019FY2019


余白

プラス

マイナス

FY2018

2016年度


Material Cost+40

SG&A-2,340

為替+4.5億円

Sales Decrease-650

Forex+12

14940

14290

0

650

14290

1500

0

15790

40

0

13490

0

2340

13490

10

0

13500

実績


FY201712,800.012,800.0

Sales Increase3,670.012,800.03,670.00.0

Cost reduction1,300.016,470.01,300.00.0

Material Cost-150.017,620.00.0150.0

SG&A-2,670.014,950.00.02,670.0

Forex-10.014,940.00.010.0

FY201814,940.014,940.0

実績


余白

プラス

マイナス

FY2017

2016年度


Material Cost-150

SG&A-2,670

為替+4.5億円


Forex-10

計画


FY201814,940.014,940.0

Sales Increase-650.014,290.00.0650.0

Cost reduction1,500.014,290.01,500.00.0

Material Cost40.015,790.040.00.0

SG&A-2,340.013,490.00.02,340.0

Forex10.013,490.010.00.0

FY201913,500.013,500.0

計画


余白

プラス

マイナス

FY2018

2016年度


Material Cost+40

SG&A-2,340

為替+4.5億円

Sales Decrease-650

Forex+10

Sheet2

Sheet3


Brass Bar Manufacturing Business Other

FY2018

Results

FY2019

Plan YoY

Sales 23,643 24,000 356 1.5%

Operating Income 287 500 212 74.2%

■ Copper Price ：750,000 yen/ton

■ Demand of brass bar is in downward trend. Improve productivity and working environment by

upgrading large-scale facilities. Try to increase margin by development of new material.

■ OP would be impacted by increase of depreciation, but will offset by improvement of productivity

Brass Bar Manufacturing Business

■ In Hotel business, we try to strengthen marketing analysis and improve service quality, also try

to impress customers by offering quality time with constant effort.

Other

FY2018

Results

FY2019

Plan YoY

Sales 3,025 3,000 (25) (0.8%)

Operating Income 90 50 (40) (44.4%)

(Millions of Yen)

(Millions of Yen)


Capex and Depreciation Plan

FY2018

Results

FY2019

Plan

Valve Manufacturing 6,200 6,700

Brass Bar Manufacturing 3,700 3,400

Other 100 100

Total 10,000 10,200

＜Capex Plan＞

＜Depreciation and Amortization Plan＞

FY2018

Results

FY2019

Plan

Depreciation and

Amortization 5,100 6,700

(Millions of Yen)

(Millions of Yen)

New IT system (SAP) (Total investment amount : 7,000 mil yen) has been operating from May2019.

Construction of new facilities in brass bar manufacturing business is progressing steadily, and mass production is scheduled to begin in the second half of the fiscal year.


FY2019(Plan) Financial Highlight

Consolidated

FY2018

Result

FY2019

Plan

Sales 136,637 133,000

Operating Income 11,713 10,000

Ordinary Income 11,883 9,700


5,625 6,400

Overseas Sales Ratio 30.3% 30.0%

Total Asset 131,657 133,800

Net Assets 76,829 79,000

Interest Bearing Debt 33,457 33,500

ROE 7.4% 8.3%

Equity Ratio 57.4% 58.0%

BPS(Yen) 793.74 837.09

EPS(Yen) 58.50 68.49

(Millions of Yen)

For questions concerning this material, please contact: KITZ Corporation

Publicity and IR Promotion office E-mail : [email protected]

FY2018�Results Presentation　　 FY2018 Results　 Valve Manufacturing Business – Domestic Sales　Valve Manufacturing Business – Overseas Sales　 Valve Manufacturing Business – Operating IncomeBrass Bar Manufacturing Business 　Other　Other income/expense�Extra ordinary income / loss　 Balance Sheet　Cash FlowsFY2018 Financial HighlightFY2019 PlanFY2019 Plan (By Segment)　Valve Manufacturing Business EnvironmentValve Manufacturing Business – Domestic SalesValve Manufacturing Business – Overseas SalesValve Manufacturing Business OP YoY ChangeBrass Bar Manufacturing Business�OtherCapex and Depreciation PlanFY2019(Plan) Financial Highlightスライド番号 21

fy2018 results presentation - kitz · sales sales increased compared with the previous term due to...

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