Financial Result for Fiscal Year 2014 at End of March 31, 2015 May - PowerPoint PPT Presentation

Securities Code 5631 Briefing Session Material Financial Result for Fiscal Year 2014 at End of March 31, 2015 May 20, 2015 THE JAPAN STEEL WORKS, LTD. IKUO SATO REPRESENTATIVE DIRECTOR AND PRESIDENT 0

Forward-Looking Statement ・ Forecasts of result and other forward-looking statements contained in this briefing document are based on assumptions that the Company considers to be reasonable based on information currently available to it. Actual results may differ significantly from those projected in the forward-looking statements as a result of various factors. ・ For the purposes of this briefing document, the “previous forecast” refers to forecast figures disclosed on November 14, 2014. 1

Table of Contents P3 Business Units and Products P4 Section 1: Earnings Result for Fiscal Year 2014 at End of March 31, 2015 P5 (1) Financial Summary P6 (2) Factors Affecting Changes in Operating Income P7 (3) Sales, Operating Income, and Orders Received by Segment P8 (4) Results of Steel and Energy Products: Sales and Orders Received by Product P9 (5) Results of Industrial Machinery Products: Sales and Orders Received by Product P10 (6) Financial Performance ,Trends in Capital Investment and Depreciation Expenses P11 Section 2: Forecasts for Fiscal 2015 End of March 31, 2016 P12 (1) Business Projection for Fiscal 2015 at End of March 31, 2016 P13 (2) Factors Affecting Changes in Operating Income P14 (3) Projected Sales, Operating Income, and Orders Received by Segment P15 (4) Forecast for Steel and Energy Products: Sales and Orders Received by Product P16 (5) Forecast for Steel and Energy Products: Sales and Orders Received by Product P17 (6) Order Backlog P18 Section 3: JGP2017 New Medium-Term Plan P19 (1) Corporate Vision and Numerical Targets P20 (2) Basic Policies for JGP2017 P24 (3) Business Strategies P25 (4) Financial Strategies 2

Business Units and Products Real estate Business Steel and energy products Industrial machinery products and other Segments businesses Products Steel Business Division Ordnance Business Machinery Business Division Headquarters Divisions Muroran Plant Hiroshima Plant Yokohama Plant Production Facilities ○ Effective [Steel castings and forgings] [Steel plates and structures] [Plastics machinery] utilization of real-estate ○ Reactors for oil refineries ○ Plastics manufacturing and processing ○ Thermal and nuclear power properties ○ Molding machines machinery plant components ・ Pelletizers ・ Plastic injection molding machines ・ Film & sheet production systems ・ Blow molding machines ・ Twin screw extruders for compound production ○ Others ○ Clad steel plates and pipes ・ Steel rolls for steelmaking Products ・ Steel for molds [Other machinery] ○ Light alloy injection molding machines [Wind turbine systems] ・ Magnesium alloy injection molding machines ○ IT-related equipment (laser annealing equipment, etc.) ・ Aluminum die-casting machinery ○ Defense equipment ○ Compressors ○ Rolling stock components Petro- Real- Electric Markets Crude Oil and Renewable Industrial Automotive Power and Chemicals IT Defense Estate Natural Gas Energy Machinery Industry Steelmaking Industry Leasing 3

Section 1: Earnings Result for Fiscal Year 2014 at End of March 31, 2015 4

(1) Financial Summary (Unit: billion yen) FY2014 Year-on-year Change from FY2013 previous change previous forecast actual (A) forecast （ C ） - （ A ） (C)-(B) （ C) （ B) 186.5 215.0 205.9 19.4 (9.1) Orders received 188.7 200.0 194.6 5.9 (5.4) Net sales 8.8 7.5 8.2 (0.6) 0.7 Operating income 4.7% 3.8% 4.2% (Operating margin) 9.7 8.5 9.9 0.2 1.4 Ordinary income 5.5 (4.5) (3.7) (9.2) 0.8 Net income Net income per share 14.92 -12.15 -10.1 (25.02) 2.05 (yen) Divident per share 5.0 4.0 4.0 (1.0) 0.0 (yen) 5

(2) Factors Affecting Changes in Operating Income (Unit: billion yen) ▲ 0.6 Production and Depreciation and sales increase other expenses 0.2 8.8 Foreign 1.4 Exchange 8.2 gain 1.4 ▲ 2.7 ▲ 0.6 Price decrease ▲ 0.3 and cost Raw materials improvement and others Energy price increase FY2013 FY2014 6

(3) Sales, Operating Income, and Orders Received by Segment (Unit: billion yen) Steel & Energy Products FY2014 Year-on-year Change from FY2013 previous change previous forecast actual (A) forecast （ C ） - （ A ） （ C) (C)-(B) （ B) 57.1 74.0 68.4 11.3 (5.6) Orders received 67.6 69.7 66.2 (1.4) (3.5) Sales (3.6) (3.2) (3.2) 0.4 0.0 Operating income -5.3% -4.6% -4.8% (Operating margin) Industrial Machinery Products FY2014 Year-on-year Change from FY2013 previous change previous forecast actual (A) forecast （ C ） - （ A ） (C)-(B) （ C) （ B) 126.6 139.0 135.3 8.7 (3.7) Orders received 118.3 127.6 126.3 8.0 (1.3) Sales 12.1 11.2 11.3 (0.8) 0.1 Operating income 10.2% 8.8% 8.9% (Operating margin) 7

(4) Results of Steel and Energy Products: Sales and Orders Received by Product (Unit: billion yen) Sales and Operating income Orders Received FY2014 Change from FY2014 Change from Year-on-year Year-on-year FY2013 previous FY2013 previous Previous Previous change change Actual Actual (A) forecast (D) forecast forecast forecast (C) – (A) (F) – (D) (C) (F) (C) – (B) (F) – (E) (B) (E) Thermal and nuclear power 22.6 28.5 27.4 4.8 (1.1) 22.6 21.0 14.7 (7.9) (6.3) plant products 4.1 4.5 4.2 0.1 (0.3) 4.6 4.5 3.0 (1.6) (1.5) Reactors for oil refineries 26.7 16.0 16.2 (10.5) 0.2 19.4 32.5 42.1 22.7 9.6 Clad steel plates and pipes 1.7 6.0 5.7 4.0 (0.3) 0.3 2.0 (2.6) (2.9) (4.6) Wind turbine systems 7.2 7.4 7.0 (0.2) (0.4) 4.9 6.0 5.5 0.6 (0.5) Others 5.3 7.3 5.7 0.4 (1.6) 5.3 8.0 5.7 0.4 (2.3) Consolidated subsidiaries, etc. 67.6 69.7 66.2 (1.4) (3.5) 57.1 74.0 68.4 11.3 (5.6) Total (3.6) (3.2) (3.2) 0.4 0.0 Operating income 8

(5) Results of Industrial Machinery Products : Sales and Orders Received by Product Orders Received Sales and Operating income (Unit: billion yen) FY2014 Change from FY2014 Change from Year-on-year Year-on-year FY2013 previous FY2013 previous Previous Previous change change Actual Actual (A) forecast (D) forecast forecast forecast (C) – (A) (F) – (D) (C) (F) (C) – (B) (F) – (E) (B) (E) Plastics manufacturing 28.3 36.0 32.5 4.2 (3.5) 32.4 38.5 31.9 (0.5) (6.6) & processing machinery 47.0 53.0 53.6 6.6 0.6 45.7 55.5 54.5 8.8 (1.0) Molding machinery 31.8 28.0 25.0 (6.8) (3.0) 41.4 31.5 31.9 (9.5) 0.4 Others 11.2 10.6 15.2 4.0 4.6 7.1 13.5 17.0 9.9 3.5 Consolidated subsidiaries, etc. 118.3 127.6 126.3 8.0 (1.3) 126.6 139.0 135.3 8.7 (3.7) Total 12.1 11.2 11.3 (0.8) 0.1 Operating income 9

(6) Financial Performance ,Trends in Capital Investment and Depreciation Expenses Trends of Capital Investment and Depreciation Expense 30.0 (Unit: billion yen) Capital Investment Depreciation Expence 20.0 16 12.9 11.0 10.7 9.4 7.9 10.0 5.5 5.2 0.0 FY2012 FY2013 FY2014 FY2015 forecast Status of Cash Flow Financial Structure (Unit: billion yen) (Unit: billion yen) Net assets Interest-bearing debt Cash flow from operating activities Cash flow from investing activities Net interest-bearing debt Debt/equity ratio Free cash flow 160.0 0.70 30.0 139.8 139.2 140.0 20.0 0.60 11.5 11.5 120.0 8.9 0.50 10.0 100.0 5.8 0.0 0.40 80.0 0.29 0.29 -2.6 60.0 0.30 -10.0 -5.7 40.0 39.5 40.0 0.20 -20.0 20.0 End-Mar End-Mar 0.10 2014 2015 0.0 End-Mar End-Mar -2.20 -20.0 -9.50 0.00 2014 2015 10 10

Section 2: Forecasts for Fiscal 2015 End of March 31, 2016 11 11

(1) Business Projection for Fiscal 2015 at End of March 31, 2016 (Unit: billion yen) FY2015 Forecast Year-on-year FY2014 change (A) full year (B) – (A) 1st half 2st half (B) 205.9 86.0 124.0 210.0 4.1 194.6 96.5 113.5 210.0 15.4 Net sales 8.2 3.3 6.7 10.0 1.8 Operating income 4.2% 3.4% 5.9% 4.8% (Operating margin) 9.9 3.5 7.0 10.5 0.6 Ordinary income (3.7) 2.0 4.7 6.7 10.4 Net income Net income per share (10.10) 5.40 12.70 18.09 28.19 (yen) Divident per share 4.0 2.5 2.5 5.0 1.0 (yen) 12 12

(2) Factors Affecting Changes in Operating Income (Unit: billion yen) 1.8 Foreign exchange gain 1.1 Production 10 and sales 2.9 8.2 ▲ 1.7 ▲ 0.4 Depreciation and ▲ 0.1 Raw materials other expenses and others Price decrease and cost improvement FY2014 FY2015 Forecast 13 13

(3) Projected Sales, Operating Income, and Orders Received by Segment (Unit: billion yen) Steel & Energy Products FY2014 FY2015 Year-on-year Actual Forecast change (B) – (A) (A) (B) 68.4 58.0 (10.4) Orders received 66.2 77.5 11.3 Sales (3.2) 0.0 3.2 Operating income -4.8% 0.0% (Operating margin) Industrial Machinery Products FY2014 FY2015 Year-on-year Actual Forecast change (B) – (A) (A) (B) 135.3 150.0 14.7 Orders received 126.3 130.5 4.2 Sales 11.3 11.0 (0.3) Operating income 8.9% 8.4% (Operating margin) 14 14