FYE 2013 Interim Settlement of Accounts Presentation Meeting November - - PowerPoint PPT Presentation

November 2012

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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FYE 2013 Interim Settlement of Accounts Consolidated Business Report

2013年3月期 第2四半期決算説明会

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.)

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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• 1. Interim Review

Highlights of Consolidated Settlement of Accounts

 Due to increased automobile production, etc., sales rose 4.2% YoY. Our operating income margin improved to 8.8%.

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

FYE 2012 FYE 2013 YoY

• vs. initial forecast

First half figure (actual) First half figure (actual) Increase/decrease Increase/decrease

Net sales

69,865 72,773 4.2%

• 0.3%

Operating income

5,567 6,419 15.3% 10.7%

Operating income margin

8.0% 8.8%

Ordinary income

5,686 6,525 14.7% 10.6%

N et income for the quarter

3,108 3,810 22.6% 15.5%

First-quarter net income per share

16.71 20.36 － －

(Exchange rates 1US$)

¥79.75 ¥79.41 － －

(Exchange rates 1EURO)

¥113.73 ¥100.54 － －

Shareholders' equity ratio

46.2% 45.6%

Net D/E ratio

0.20 0.20

Equity capital/total assets

Net interest-bearing debt / equity capital

(Yen, millions)

3 2 9 3 2 9 3 5 3 3 5 3 3 4 0 3 4 0 3 5 8 3 5 8 3 3 0 3 3 0 3 6 8 3 6 8 3 5 5 3 5 5 3 9 4 3 9 4 3 6 0 3 6 0 3 6 7 3 6 7 8 . 6 % 9 . 1 % 8 . 4 % 9 . 0 % 8 . 8 % 7 . 1 % 6 . 9 % 9 . 4 % 7 . 9 % 7 . 7 % 1 0 0 1 0 0 2 0 0 2 0 0 3 0 0 3 0 0 4 0 0 4 0 0 5 0 0 5 0 0 1 Q 1 Q 2 Q 2 Q 3 Q 3 Q 4 Q 4 Q 1 Q 1 Q 2 Q 2 Q 3 Q 3 Q 4 Q 4 Q 1 Q 1 Q 2 Q 2 Q 0 % 0 % 5 % 5 % 1 0 % 1 0 % 1 5 % 1 5 % 2 0 % 2 0 % 2 5 % 2 5 %

億円

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• 2. Interim Review

Trend in Quarterly Consolidated Settlement of Accounts

 Trends in sales and operating income margin (Consolidated)

FYE 2012 FYE 2011

Major exchange rates

Full year Full year First half

US＄ ¥85.74 ¥79.07 ¥79.41 Euro ¥113.14 ¥109.02 ¥100.54 2013年3月期 第2四半期決算説明会 FYE 2013 (Yen, 100 millions)

Unit: Yen, 100 millions : Sales

: Operating income margin

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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• 3. Interim Review

Analysis of Factors Consolidated Increasing/Decreasing Operating Income

 First half of FYE 2012 (actual figures) vs. First half of FYE 2013 (actual figures)

¥2.2

billion

¥6.4

billion

1H FYE 2012 Operating income

Increasing factors Decreasing factors

Other fixed cost increase Sales increase

• 0.7 billion
• 0.5 billion

Labor cost increase 1H FYE 2013 Operating income

¥5.5

billion

2013年3月期 第2四半期決算説明会

Cost of materials

• 0.1 billion

*Note: The foreign exchange effect was extremely small, so we assumed it to be zero.

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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• 4. Interim Review

Breakdown by Business Segment

 Due to increased automobile production, Automotive Parts Operations recorded higher sales and income. Both Power Transmission Units and Components Operations and Materials Handling Systems Operations recorded sales and income declines.

2013年3月期 第2四半期決算説明会 Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting FYE 2012 FYE2013 YoY

• vs. initial forecast

First half figure (actual) First half figure (actual) Increase/decrease Increase/decrease

Net sales *1

25,964 25,088

• 3.4%
• 3.1%

Operating income

1,819 1,922 5.6% 13.1%

O perating income margin

7.0% 7.7%

Net sales *1

10,957 10,005

• 8.7%
• 4.7%

Operating income

1,379 1,017

• 26.2%
• 10.9%

O perating income margin

12.6% 10.2%

Net sales *1

19,858 24,396 22.8% 3.8%

Operating income

1,734 3,244 87.0% 29.3%

O perating income margin

8.7% 13.3%

Net sales *1

13,141 13,135

• 0.0%

0.3%

Operating income

367 261

• 28.9%
• 28.5%

O perating income margin

2.8% 2.0%

Net sales *1

1,297 1,435 10.6% 0.3%

Operating income

62 92 46.4% 8.2%

O perating income margin

4.9% 6.4%

(Yen, millions) Chain Operations

Power Transmission Units and Components Operations

*1: Sales figures include internal sales and transfers between segments. *2: "Other" is not a reportable segment.

Automotive Parts Operations

Materials Handing Systems Operations

Other *2

50 100 150

1Q 2Q 3Q 4Q 1Q 2Q

0% 5% 10% 15% 50 100 150

1Q 2Q 3Q 4Q 1Q 2Q

0% 5% 10% 15%

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• 5. Interim Review

Overview by Business Segment

 Chain Operations  Power Transmission Units and Components Operations

（Yen, 100 millions）

 Trends in sales and operating income margin

2013年3月期 第2四半期決算説明会

FYE 2012 FYE 2013 FYE 2012 FYE 2013

<Sales by industry>

• Sales to the automobile and food & beverage

industries were favorable.

<Sales by region>

• Sales in Japan and North America were favorable.
• Sales in Europe were firm, but declined after

conversion into yen. (In local currency, sales grew slightly YoY.)

• Performance in Asia and Oceania was weak.

<Sales by industry>

• Sales to the automobile industry were favorable.
• LCD- and semiconductor-related sales were

weak.

<Sales by region>

• Performance in China trended upward.
• Performance in Japan, North America, and Asia

was weak.

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

（Yen, 100 millions）

Unit: Yen, 100 millions : Sales

: Operating income margin

• 50

50 100 150

1Q 2Q 3Q 4Q 1Q 2Q

• 5%

0% 5% 10% 15% 50 100 150

1Q 2Q 3Q 4Q 1Q 2Q

0% 5% 10% 15%

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• 5. Interim Review

Overview by Business Segment

Automotive Parts Operations

 Trends in sales and operating income margin

2013年3月期 第2四半期決算説明会

FYE 2012 FYE 2013 FYE 2012 FYE 2013

<Sales by region>

• Large sales gains were recorded in Japan and North

America (partly due to recovery from the Great East Japan Earthquake).

• In Japan, Eco-car subsidies had a positive effect.
• In Thailand, increased output by Japanese manufacturers

boosted sales.

• Sales rose in China, but the outlook for Japanese

automakers is unclear.

• Sales in Europe were firm, but declined after conversion

into yen. (In local currency, sales grew YoY.) <Sales by industry>

• Sales of machine tool conveyors and granular

material conveyors were favorable.

• Sales to the distribution industry were favorable.
• Large-scale projects for the steel industry declined.

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

 Materials Handling Systems Operations

Unit: Yen, 100 millions : Sales

: Operating income margin （Yen, 100 millions） （Yen, 100 millions）

<Sales share of each region>

• 6. Interim Review

Overview by Region

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* Sales share figures are calculated from sales to outside clients.

1H FYE 2013

Japan 63.0% North America 17.9% Europe 8.3% Asia/Oceania 10.8% 2013年3月期 第2四半期決算説明会

 Asia and Oceania operations grew on strong performance in automotive

• parts. Profitability improved greatly in North America and Europe.

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

FYE 2012 FYE 2013 YoY

First half figure (actual) First half figure (actual) Increase/decrease

Japan Net sales *

53,369 55,536 4.1%

Operating income

3,912 4,486 14.7%

Operating income margin

7.3% 8.1%

North America Net sales *

12,708 13,324 4.9%

Operating income

735 1,026 39.6%

Operating income margin

5.8% 7.7%

Europe Net sales *

6,332 6,248

• 1.3%

Operating income

136 222 62.5%

Operating income margin

2.2% 3.6%

Asia/Oceania Net sales *

6,873 8,358 21.6%

Operating income

784 795 1.3%

Operating income margin

11.4% 9.5%

Other areas Net sales *

48 23

• 50.3%

Operating income

• 22
• 29

－

Operating income margin

－ －

Consolidated Net sales *

69,865 72,773 4.2%

Operating income

5,567 6,419 15.3%

Operating income margin

8.0% 8.8%

*Sales figures include internal sales and transfers between segments.

<Major exchange rates>

(Yen, millions)

1H FYE 2012 : US$＝¥79.75, EURO＝¥113.73, Can$＝¥81.94, A$＝¥84.30, THB＝¥2.70, NT$＝¥2.75, RMB＝¥12.53, WON＝¥0.07 2H FYE 2013 : US$＝¥79.41, EURO＝¥100.54, Can$＝¥79.13, A$＝¥81.30, THB＝¥2.57, NT$＝¥2.67, RMB＝¥12.63, WON＝¥0.07

10 10 20 20 30 30 40 40 50 50 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q 2Q 2Q 0% 0% 4% 4% 8% 8% 12% 12% 16% 16% 10 10 20 20 30 30 40 40 50 50 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q 2Q 2Q 0% 0% 4% 4% 8% 8% 12% 12% 16% 16% 20 20 40 40 60 60 80 80 100 100 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q 2Q 2Q 0% 0% 4% 4% 8% 8% 12% 12% 16% 16% 50 50 100 100 150 150 200 200 250 250 300 300 350 350 400 400 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q 2Q 2Q 0% 0% 4% 4% 8% 8% 12% 12% 16% 16%

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• 7. Interim Review

Quarterly Trends by Region

 North America  Japan

2013年3月期 第2四半期決算説明会

FYE 2012 FYE 2013 FYE 2012 FYE 2013 FYE 2012 FYE 2013 FYE 2012 FYE 2013

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

 Asia / Oceania  Europe

Unit: Yen, 100 millions : Sales

: Operating income margin

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Mid-Term Management Plan 2012 Hone the ‘Global-Best’ strategy

2013年3月期 第2四半期決算説明会 Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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• 1. Hone the 'Global-Best' Strategy

2013年3月期 第2四半期決算説明会

South Korea - Representative office opened

(Power transmission*)

China (Tianjin) - Subsidiary established (Chain) China (Shanghai) – Engineering company established

(Materials Handling Systems)

Vietnam - Representative office opened

(Power transmission*)

India - Sales company established

(Power transmission*)

Germany – Sales company established

(Power transmission*, Automotive parts)

Germany - KabelSchlepp becomes subsidiary

：Manufacturing company, etc. ：Engineering company ：Sales company ：Representative office

 Strengthen Overseas Production Centers (From 2010)

Mexico – Subsidiary established

(Automotive parts)

*Note: Power transmission: chain & power transmission products

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

Indonesia – Manufacturing company and sales company established

(Power transmission*, Materials Handling Systems)

USA and Netherlands Mayfran Group becomes subsidiary

(Materials Handling Systems)

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• 2. Acquisition of Mayfran Group

2013年3月期 第2四半期決算説明会

Business: Headquarters: Established: Number of employees:

Cleveland, Ohio, USA Approximately 870

 Financial aspect of acquisition

 Acquisition price: US$85 million

 Mayfran Overview

 Earnings forecast: (FYE 2013; consolidated period = Sep-Dec 2012) Sales:

• Approx. ¥4.2 billion

Operating income:

• Approx. ¥370 million – goodwill in this term approx. ¥300

million = approx. ¥70 million  Goodwill:

• Approx. ¥4.4 billion amortized over five years

(approx. ¥900 million/year) 1933 Manufacture and sale of chip conveyors and scrap conveyors

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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• 2. Acquisition of Mayfran Group

2013年3月期 第2四半期決算説明会

(1) Global development of chip conveyor and scrap conveyor businesses  Goal and strategy

• Replacement of existing parts with Tsubaki power

transmission products

• Construction of a global tri-polar business organization

(Asia, US, and Europe) led by Tsubakimoto Chain

• A stronger presence in scrap conveyors in the Chinese

market

• Reinforcement of global OEM supply and service system

for Japanese machine tool manufacturers

(2) Global-scale strategy in the machine tool industry (3) Global supply of Tsubaki power transmission products for chip conveyors and scrap conveyors

Chip conveyor Scrap conveyor (DRY) Scrap conveyor (WET)

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

40% 60%

60% 40%

25% 75%

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• 2. Acquisition of Mayfran Group

 Production system for chip conveyors and scrap conveyors  Construction of a global tri-polar business organization (Asia, US, and Europe)

2013年3月期 第2四半期決算説明会 * Note: Figures inside pie charts show composition by sales. Chart size indicates sales amount.

Chip conveyor group Scrap conveyor group

Tsubakimoto Chain Mayfran America (USA) Mayfran Europe (Europe) Tsubakimoto Mayfran (Asia)

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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• 3. Progress at Tsubakimoto Chain (Tianjin) Co., Ltd.

 Stage of plant start-up

2013年3月期 第2四半期決算説明会

Nov 2012: Knockdown production (assembly) partial start Jan 2013: Heat-processing equipment to start operating (planned)

Jan 2013: Full operation (planned)

Bucket elevator-use conveyor chain Unloader-use conveyor chain Architectural rendition of finished plant

 Main products and uses

Chain scraper-type reclaimer-use Bearing roller conveyor chain

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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Full Year Consolidated Settlement of Accounts Forecasts for FYE 2013

2013年3月期 第2四半期決算説明会 Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

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• 1. FYE 2013

Consolidated Settlement of Accounts Forecast  The unclear outlook for Chinese business and domestic private consumption prompted us to revise our full-term forecast.

2013年3月期 第2四半期決算説明会 Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

FYE 2012 YoY

• vs. initial

forecast Full year figure (actual) First half figure (actual) Second half forecast Full year forecast

Increase/decrease Increase/decrease

Net sales

144,896 72,773 77,227 150,000 3.5% 0.0% 4,200

Operating income

12,081 6,419 5,681 12,100 0.2%

• 10.4%

70

Operating income margin

8.3% 8.8% 7.4% 8.1%

Ordinary income

12,140 6,525 5,575 12,100

• 0.3%
• 9.7%

30

Net income

6,814 3,810 2,990 6,800

• 0.2%
• 11.7%
• Net income per share

¥36.60

• ¥36.33
• (Exchange rates 1US$)

¥78.98

• ¥77.00

¥77.00

(Exchange rates 1EURO)

¥110.62

• ¥103.00
• Dividend per share (yen)

7.00 3.00 4.00 7.00

• (Yen, millions)

FYE 2013

*Note: The newly consolidated Mayfran Group is included in forecast consolidated results. The period of consolidation is Sep-Dec 2012. From newly consolidated Mayfran Group*

18

• 2. FYE 2013

Settlement of Accounts Forecasts by Business Segment

 Chain & Power Transmission Operations are expected to record sales and profit

• declines. Automotive Parts Operations, as well as Materials Handling Systems

Operations in the newly consolidated Mayfran, are expected to record sales and profit growth.

2013年3月期 第2四半期決算説明会 Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting FYE 2012 YoY

• vs. initial forecast

Full year figure (actual) First half figure (actual) Second half forecast Full year forecast

Increase/decrease Increase/decrease

Net sales *1

51,692 25,088 24,812 49,900

• 3.5%
• 5.1%

Operating income

3,462 1,922 1,008 2,930

• 15.4%
• 22.1%

Operating income margin

6.7% 7.7% 4.1% 5.9%

Net sales *1

21,364 10,005 10,195 20,200

• 5.4%
• 5.2%

Operating income

2,512 1,017 843 1,860

• 26.0%
• 22.4%

Operating income margin

11.8% 10.2% 8.3% 9.2%

Net sales *1

43,509 24,396 24,404 48,800 12.2%

• 0.8%

Operating income

4,846 3,244 2,436 5,680 17.2%

• 5.4%

Operating income margin

11.1% 13.3% 10.0% 11.6%

Net sales *1

27,977 13,135 17,565 30,700 9.7% 12.9% 4,200

Operating income

878 261 769 1,030 17.3% 3.3% 70

Operating income margin

3.1% 2.0% 4.4% 3.4%

Net sales *1

2,911 1,435 1,665 3,100 6.5% 9.2%

Operating income

170 92 88 180 5.9%

• 5.8%

Operating income margin

5.9% 6.4% 5.3% 5.8%

Chain Operations

Power Transmission Units and Components Operations

*2: "Other" is not a reportable segment.

(Yen, millions) FYE 2013 Automotive Parts Operations

Materials Handing Systems Operations

Other*2

*1: Sales figures include internal sales and transfers between segments. *3: The newly consolidated Mayfran Group is included in forecast consolidated results. The period of consolidation is Sep-Dec 2012.

From newly consolidated Mayfran Group*3

19

• 3. FYE 2013

Analysis of Factors Consolidated Increasing/Decreasing Operating Income

 FYE 2012 (actual figures) vs. FYE 2013 (forecasts)

2013年3月期 第2四半期決算説明会 ¥3.6

billion

¥12.1

billion

FYE 2013 Operating income Other fixed cost increase Sales increase

• ¥1.8 billion
• ¥1.7 billion

Labor cost increase

• ¥0.1 billion

FYE 2013 Operating income

¥12

billion

Foreign exchange effect

Increasing factors Decreasing factors

¥0.1

billion

Cost of materials

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

35 36 74 39 58 95

(140)

100 108 102 60 55 55 59 73 73 73 75 74

(72)

20 40 60 80 100 120 140 160

04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3

10 20 30 40 50 60 70 80

設備投資（連結） 減価償却費（連結） 億円 億円

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2013年3月期 第2四半期決算説明会

 Main capital expenditures

(1) Construction-related expenses for Chinese (Tianjin) subsidiary’s manufacturing plant (Chain Operations) (2) Reinforcement of global production system in Automotive Parts Operations

 Trends in capital expenditures and depreciation expenses

*Note: Figures in parentheses are current-term estimates. (FYE)

H1 FYE2013 results: Capex approx. ¥5.4 billion, depreciation approx. ¥3.4 billion

Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting

• 4. FYE 2013

Capital Expenditures and Depreciation Expenses

(Yen, 100 millions)

Capital expenditures (Consolidated) Depreciation expenses (Consolidated)

(Yen, 100 millions)

This reference document describes our business plans and our earnings

• utlook. The content of this document is based on current information

available to our company and on certain assumptions determined as

• reasonable. It is not intended to represent a performance commitment.

Note that actual results may differ from the earnings outlook described herein, as the results are dependent upon a variety of variables.

2013年3月期 第2四半期決算説明会 Tsubakimoto Chain Co. FYE 2013 Interim Settlement of Accounts Presentation Meeting