2q fy2014 earnings presentation - furusato2q fy2014 earnings presentation (april 1 to september 30,...
TRANSCRIPT
2Q FY2014
Earnings Presentation(April 1 to September 30, 2014)
November 2014
Furusato Industries, Ltd.
Always Pursuing the Best Service
2
Contents
Copyright© Furusato Industries, Ltd. All Rights Reserved
2QFY14 Consolidated Results
・Consolidated results P. 4
・Sales by segment P. 6
・Gross profit by segment P. 8
・SG&A Expenses P. 9
・Operating income by segment P.10
・Segment ①Equipment and Tools P.11
・Segment ②Machine and Facility P.13
・Segment ③Construction and Piping Products P.15
・Operating income~net income P.17
・Consolidated CF P.18
・Consolidated B/S P.19
・Capital investment and depreciation and amortization P.21
・Returns to shareholders P.22
FY2014 Forecasts
・Consolidated Forecast P.24
・Segment①Equipment and Tools P.25
・Segment②Machine and Facility P.26
・Segment③Construction and Piping Products P.27
Growth Strategy
・Industrial Equipment P.29
・Housing Equipment P.30
・Machine Tool・Factory Automation P.31
・Steel Frame Building Supplies P.32
・Piping Products P.33
Reference P.34
Non-consolidates results
Subsidiary results P.41
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3Copyright© Furusato Industries, Ltd. All Rights Reserved
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2Q FY2014
Consolidated Results
4
+197
+230
+208
+227
+436
+3,170
Change
Y-o-Y
+28.2%
+19.1%
+19.4%
+5.1%
+7.9%
+8.4%
%
Change
780
1,300
1,160
4,604
5,764
39,500
1H Forecast
FY14
896
1,436
1,282
4,659
5,941
40,804
1H
FY14
110.5%Ordinary income
vs. 1H
Forecast
103.1%Gross profit
Net income
Operating income
SG&A expenses
Net sales
114.9%
110.5%
101.2%
103.3%
Copyright© Furusato Industries, Ltd. All Rights Reserved
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Consolidated Results
Sales growth ratio up, operating income doubleSales growth ratio up, operating income double--digit growthdigit growthRounded down to the nearest million yen
5
+29.5%
+15.1%
+14.8%
+5.4%
+7.9%
+11.9%
%
Change
Y-o-Y
+25.4%
+28.1%
+31.7%
+4.8%
+8.0%
+4.6%
%
Change
Y-o-Y
624
966
894
2,318
3,213
22,189
2Q
FY14
271
469
387
2,340
2,728
18,615
1Q
FY14
+105.7%Ordinary income
%
Change
+17.8%Gross profit
Net income
Operating income
SG&A expenses
Net sales
+129.7%
+130.6%
(0.9)%
+19.2%
vs. 1Q
Copyright© Furusato Industries, Ltd. All Rights Reserved
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Consolidated Results (Quarterly) by Segment
Rounded down to the nearest million yen
Sales and profit increase due to relatively favorable performancSales and profit increase due to relatively favorable performance e
6Copyright© Furusato Industries, Ltd. All Rights Reserved
9,404
(-3.6%)
10,160
(+8.0%)
11,158
(+9.8%)
12,196
(+9.3%)
13,597
(+11.5%)
4,129
(+28.5%)
6,054
(+46.6%)
7,391
(+22.1%)
6,412
(-13.2%)
6,932
(+8.1%)
20,274
(+6.6%)
19,025
(+0.8%)
18,869
(+3.8%)
18,173
(+9.7%)16,572
(+29.4%)
40,80440,80440,80440,804
(+8.4%)37,63437,63437,63437,634
(+0.6%)
37,42037,42037,42037,420
(+8.8%)34,38834,38834,38834,388
(+14.2%)30,11730,11730,11730,117
(+16.8%)
0
25,000
50,000
11/3 1H 12/3 1H 13/3 1H 14/3 1H 15/3 1H
Equipment and ToolsMachine and FacilityConstruction and Piping Products
+11.5%13,597(33.3%)Construction and Piping
+8.4%40,804(100%)Total
+8.1%6,932(17.0%)Machine and Facility
+6.6%20,274(49.7%)Equipment
and Tools
Y-o-YNet sales(% of total)15/3 2Q
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Consolidated Sales (1H) by Segment
Rounded down to the nearest million yen
Sales increase in all segmentsSales increase in all segments
Figures in ( )indicates % Y-o-Y
7Copyright© Furusato Industries, Ltd. All Rights Reserved
7,236
(+10.5%)
5,644
(+8.6%)
6,551
(+9.9%)
7,369
(+17.7%)
6,882
(+26.8%)
6,360
(+12.7%)
4,489
(31.4%)
2,995
(-13.0%)
3,417
(-13.4%)
2,778
(-7.6%)
5,678
(+49.6%)
2,442
(-18.5%)
10,463
(+6.1%)
9,811
(+7.1%)
11,432
(+18.9%)
10,548
(+10.4%)
9,862
(+5.4%)
9,163
(-3.7%)
22,18922,18922,18922,189
(+11.9)
18,61518,61518,61518,615
(+4.6%)
23,99323,99323,99323,993
(+27.3%)
20,69620,69620,69620,696
(+10.0%)
19,83119,83119,83119,831
(+2.9%)
17,80317,80317,80317,803
(-1.9%)
0
10,000
20,000
30,000
14/3 1Q 14/3 2Q 14/3 3Q 14/3 4Q 15/3 1Q 15/3 2Q
Equipment and Tools
Machine and Facility
Construction and Piping Products
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Consolidated Sales (Quarterly) by Segment
Rounded down to the nearest million yen
Figures in ( )indicates % Y-o-Y
MachineMachine・・Facility: Sales turned to a YFacility: Sales turned to a Y--oo--Y increase in 2Q Y increase in 2Q
8
14.0%
14.5%
14.2%
14.6% 14.6%
Gross profit margin
Copyright© Furusato Industries, Ltd. All Rights Reserved
3,011(+9.7%)2,744(+13.2%)2,424(+4.9%)2,310(+21.1%)1,908
607(+16.3%)522(-15.2%)
616(+24.2%)496(+41.9%)
349
1,936
2,182(+12.7%) 2,274(+4.2%) 2,238(-1.6%) 2,322(+3.7%)4,2034,2034,2034,203(+13.4%) 4,9884,9884,9884,988(+18.7%) 5,3155,3155,3155,315(+6.6%) 5,5055,5055,5055,505(+3.6%) 5,9415,9415,9415,941(+7.9%)
04,000
11/3 1H 12/3 1H 13/3 1H 14/3 1H 15/3 1H-0Adjustment
+9.7%3,011(22.1%)Construction and Piping
+7.9%5,941(14.6%)Total
+16.3%607(8.8%)Machine and Facility
+3.7%2,322(11.5%)Equipment and Tools
Y-o-YGrossProfit(%)15/3 2Q
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Consolidated Gross Profit by Segment
Rounded down to the nearest million yen
Gross profit increase in all segmentsGross profit increase in all segments
Figures in ( )indicates % Y-o-Y
Equipment and Tools Business
Machine and Facility Business
Construction and Piping Products Business
9
13.7% 11.9% 11.5% 11.8% 11.4%% of SG&A Ex.
510(+13.5%) 493(-3.2%) 550(+11.4%) 588(+7.0%) 685(+16.4%)
2,580
(-3.9%)
2,583
(+0.1%)
2,678
(+3.7%)
2,712
(+1.3%)
2,820
(+4.0%)
1,154
(+2.1%)
1,130
(+6.2%)
1,064
(+3.4%)
1,029
(+0.0%)
1,029
(-16.0%)
4,6594,6594,6594,659
(+5.1%)
4,4314,4314,4314,431
(+3.2%)
4,2934,2934,2934,293
(+4.5%)
4,1074,1074,1074,107
(-0.3%)
4,1214,1214,1214,121
(-5.5%)
0
4,000
11/3 1H 12/3 1H 13/3 1H 14/3 1H 15/3 1H
Sales expenses Personal expenses Other SG&A Ex.
Copyright© Furusato Industries, Ltd. All Rights Reserved
+16.4%685(14.7%)Sales expenses
+5.1%4,659(100%)Total
+4.0%2,820(60.5%)Personal expenses
+2.1%1,154(24.8%)Other SG&A
Expenses
Y-o-YSG&A Ex.(%)15/3 2Q
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Consolidated SG&A Expenses
Rounded down to the nearest million yen
Figures in ( )indicates % Y-o-Y
Increase in freightage and packing exp. and provision of allowance for doubtful account
10Copyright© Furusato Industries, Ltd. All Rights Reserved
-56Adjustment
+24.4%772(5.7%)Construction and Piping
+19.4%1,282(3.1%)Total
+41.8%146(2.1%)Machine and Facility
(8.3)%306(1.5%)Equipment and Tools
Y-o-YOperating income(%)15/3 2Q
Always Pursuing the Best Service Consolidated Operating Income by Segment
Rounded down to the nearest million yen
Figures in ( )indicates % Y-o-Y
Machine・Facility returned to profitability
-61
364
355
(-2.4%)
621
(+74.7%)
772
(+24.4%)
-38
92
191(+106.8%)
103(-46.2%)
146(+41.8%)
306
(-8.3%)
333
(-20.8%)421
(+14.1%)369
(+194.9%)
125
1,2821,2821,2821,282
(+19.4%)1,0731,0731,0731,073
(+5.0%)1,0221,0221,0221,022
(+16.1%)880880880880(+973%)
82828282
-300
0
300
600
900
1,200
11/3 1H 12/3 1H 13/3 1H 14/3 1H 15/3 1H
Equipment and Tools Business
Machine and Facility Business
Construction and Piping Products Business
11
99.4%2,336
+3.7%+832,322
Gross profit103.3%
19,629+6.6%+1,249
20,274Total sales
(27)
+38
+26
+105
+61
+1,017
Change
Y-o-Y
(8.3)%
+8.9%
+33.9%
+4.3%
+2.5%
+7.5%
%
Change
361
434
435
2,483
2,698
13,579
1H Forecast
FY14
306
469
103
2,571
2,509
14,621
1H
FY14
108.1%Other
vs. 1H
Forecast
93.0%
Machine and Tools forAutomotive
Operating income
OverseasHousing Equipment
Industrial Equipment
84.7%
23.8%
103.6%
107.7%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Always Pursuing the Best Service Segment Breakdown①Equipment and Tools Business
Rounded down to the nearest million yen
Operating income decrease, impacted by loss on valuation of inventory
12Copyright© Furusato Industries, Ltd. All Rights Reserved
8,0127,3687,1526,450 +6.7%
7,629
+8.4%
6,991
0
5,000
1Q 2Q 3Q 4Q14/3 15/3
1,6001,3911,2011,245 +6.9%
1,284
-1.7%
1,224
0
1,000
1Q 2Q 3Q 4Q14/3 15/3
1,5541,5041,2361,229 +1.5%
1,254
+7.1%
1,317
0
1,000
1Q 2Q 3Q 4Q14/3 15/3
The Indices of Industrial Production (vs. previous quarter)1Q:-3.9P, 2Q:-1.9P(Reference④)
Industrial Equipment Business2Q sales +6.7% Y-o-YEnded a drop following the last-minute rise in demand before consumption tax hike, but demand grew slowly and prospects remained uncertain.
Transport Equipment (vs. previous quarter)
1Q:-4.1P, 2Q:-5.9P (Reference④)
Machine and Tools for Auto Business2Q sales +6.9% Y-o-Y Turned positive from a Y-o-Y decrease in 1Q, still continued slow recovery
New housing and remodeling demand:Expected a drop following the last-minute rise in demand
Housing Equipment Business2Q sales +1.5% Y-o-YEnded to absorb demand carried forward
from FY13
Always Pursuing the Best Service Segment Breakdown①Equipment and Tools Business
Rounded down to the nearest million yen
Machine and Tools for Auto: Slow recovery, Housing Equip.: SlowdMachine and Tools for Auto: Slow recovery, Housing Equip.: Slowdownown
Industrial Equipment
Machine and Tools for Automotive
Housing Equipment
13
95.8%634
+16.3%+84607
Gross profit94.0%
7,379+8.1%+519
6,932Total sales
+43
+245
+274
Change
Y-o-Y
+41.8%
+21.7%
+5.2%
%
Change
200
1,211
6,168
1H Forecast
FY14
146
1,374
5,558
1H
FY14
113.5%Factory Automation
vs. 1H
Forecast
Operating income
Machine Tool
73.0%
90.1%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Always Pursuing the Best Service Segment Breakdown②Machine and Facility Business
Rounded down to the nearest million yen
Machine Tool: Short of forecast despite rapid recovery in 2QMachine Tool: Short of forecast despite rapid recovery in 2Q
14Copyright© Furusato Industries, Ltd. All Rights Reserved
4,7332,1702,7502,532 +32.1%
3,634
-24.0%
1,923
0
2,500
1Q 2Q 3Q 4Q14/3 15/3
944607666462 +28.4%
855
+12.1%
519
0
1,000
1Q 2Q 3Q 4Q14/3 15/3
Domestic orders received by JMTBA (Y-o-Y)
1Q: +29.1%, 2Q: +27.1%(Reference⑤)
Machine Tool Business2Q sales +32.1% Y-o-Y due to recording sales smoothly
Machine Tool Business2Q orders received +27.7%Y-o-Y due to orders received at high level
2QE order backlog ¥4,936M(+40.8% Y-o-Y)
Factory Automation Business (Y-o-Y)2Q sales +28.4% Y-o-Y, vs.1Q +64.8%
2QE order backlog ¥476M(-25.8% Y-o-Y)
2,9803,6293,1132,574 +27.7%
3,974+23.8%
3,187
0
2,500
5,000
1Q 2Q 3Q 4Q14/3 15/3
Always Pursuing the Best Service Segment Breakdown②Machine and Facility Business
Rounded down to the nearest million yen
High level of orders received recorded in 2Q
Machine Tool
(Net sales)
Machine Tool(Orders received)
Factory Automation
15
107.9%2,790
+9.7%+2663,011
Gross profit108.8%
12,492+11.5%+1,400
13,597Total sales
+151
+456
[+784][+159]+944
Change
Y-o-Y
+24.4%
+20.4%
(+10.6%)(+6.3%)+9.5%
%
Change
560
2,500
-
-
9,992
1H Forecast
FY14
772
2,690
[8,205]
[2,701]
10,906
1H
FY14
107.6%Piping Products
vs. 1H
Forecast
-[In-house products]
Operating income
[Purchasing supplies]
Steel Frame Building Supplies
138.0%
-109.2%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Always Pursuing the Best Service Segment Breakdown③Construction and Piping Products Business
Rounded down to the nearest million yen
Construction ・Piping Products: Double-digit sales increase
16Copyright© Furusato Industries, Ltd. All Rights Reserved
1,2831,4761,3381,203 +8.6%
1,453+3.7%
1,248
0
1,000
1Q 2Q 3Q 4Q14/3 15/3
1,4761,4401,2121,021 +16.7%
1,415
+24.8%
1,275
0
1,000
1Q 2Q 3Q 4Q14/3 15/3
Demand for steel frame used for building
1H -0.4% Y-o-YSteel product price (H-beam) flat (Reference⑥)
Steel Frame Building Supplies (In-house)2Q +8.6% Y-o-Y due to full production of brace
Steel Frame Build. Supplies (Purchasing)2Q sales +9.2% Y-o-Y due to strong demand for order-made products and machine & tools despite sluggish demand for consumable products following the last-minute rise in demand in FY13
Piping Products Business2Q sales +16.7% Y-o-Y due to favorable sales in pipe fittings, flanges, valves and machine tools
4,1234,4524,0013,419 +9.2%
4,367
+12.2%
3,837
0
3,000
1Q 2Q 3Q 4Q14/3 15/3
Always Pursuing the Best Service Segment Breakdown③Construction and Piping Products Business
Rounded down to the nearest million yen
Both businesses: Favorable machine and tools salesBoth businesses: Favorable machine and tools sales
Steel Frame Building Supplies(Purchasing)Piping Products
Steel Frame Building Supplies (In-house)
17
Income taxes
Gain on sale of
investment securities
Loss on sale of
investment securities
Purchase discount
Sales discount
Item
Major item
599+33(0)+27(18)
Change
+197
+269
+38
+230
+21
+208
Change
Y-o-Y
896
1,495
59
1,436
153
1,282
1H
FY14
+21.9%Income before
income taxes
% change
+16.4%Non-operating
income/expenses
Net income
Extraordinary
income/loss
Ordinary income
Operating income
+28.2%
+118.7%
+19.1%
+19.4%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Always Pursuing the Best Service Consolidated Operating Income~Net Income
Rounded down to the nearest million yen
Net income + 28.2%Net income + 28.2%
18Copyright© Furusato Industries, Ltd. All Rights Reserved
9,2759,2759,2759,2759,7309,7309,7309,730
+1,284+1,284+1,284+1,284
+145+145+145+145
-974-974-974-974
Beginning Operating CF Investing CF Financing CF Year-end
Always Pursuing the Best Service
Consolidated Cash Flow
Rounded down to the nearest million yen
+454M in cash and cash equivalents
Income before income
taxes +1,495
Depreciation and
amortization + 154
Increase in provision
for bonuses +21
Decrease in notes and
accounts receivable +2,532
Increase in notes and
accounts payable-1,750
Income taxes paid-906
Withdrawal of time
deposits -460
Proceeds from
withdrawal of time
deposits +187
Purchase of property,
plant and equipment-525
Purchase of
investment securities-234
Long-term loans
payable +500
Cash dividends paid-354
19Copyright© Furusato Industries, Ltd. All Rights Reserved
2,5402,268 2,314
2,884
9,7959,436 9,176
9,521
4,023
4,014 4,126
4,297
20,003
24,028
22,093
25,634
6,861
7,016
8,439
9,393
3,247(+12.6%)9,879(+3.8%)4,757(+10.7%)23,336(-9.0%)10,121(+7.8%)52,85652,85652,85652,856(-0.5%)
47,53247,53247,53247,53247,97847,97847,97847,978
44,53644,53644,53644,536
53,14753,14753,14753,147
0
25,000
50,000
11/3 12/3 13/3 14/3 15/3 2Q
全社Cash and deposits
Notes and accounts
receivable
Other curent assets
Property, plant and
equipment
Investment
securities
Other noncurrent
assets
Always Pursuing the Best Service
Consolidated B/S Assets
Rounded down to the nearest million yen
Notes and accounts receivable down vs. Notes and accounts receivable down vs. FY13FY13E due to special factors in 4Q FY13E due to special factors in 4Q FY13
Figures in ( )indicates % Y-o-Y *Notes and accounts receivable include Electronically recorded monetary claims in FY12, FY13, 2QFY14.
20Copyright© Furusato Industries, Ltd. All Rights Reserved
28,31529,186
30,040
31,514
13,456
15,577 14,714
18,298
32,211(+2.2%)1,258
966838
960
1,332(+38.7%)1,505
2,249
1,940
2,3742,521(+6.2%)16,791(-8.2%)52,85652,85652,85652,856(-0.5%)
47,53247,53247,53247,53247,97847,97847,97847,978
44,53644,53644,53644,536
53,14753,14753,14753,147
0
25,000
50,000
11/3 12/3 13/3 14/3 15/3 2Q
全社Notes and accounts
payable
Other current
liabilities
Noncurrent liabilities
Net assets
Always Pursuing the Best Service Consolidated B/SLiabilities and Net Assets
Rounded down to the nearest million yen
Net assets to total assets 60.9% due to net assets increaseNet assets to total assets 60.9% due to net assets increase
Figures in ( )indicates % Y-o-Y
21Copyright© Furusato Industries, Ltd. All Rights Reserved
39 116 146 1791,190
600395 341 318 357 281 3306,905 6,861 7,016 8,439 9,393
0500
1,0001,500
10/3 11/3 12/3 13/3 14/3 15/3 (Forecast) 02,5005,0007,50010,000Capital investment Depreciation and amortization
Cash and deposits
Always Pursuing the Best Service Capital Investment Depreciation and Amortization
Rounded down to the nearest million yen
Capital investment: Increase mainly by GCapital investment: Increase mainly by G--net Tokyo Branch buildingnet Tokyo Branch building
*Cash and deposits at the year-end
□□□□ Increase in capital investment (FY13)
G-net Tokyo Branch building and other (¥735M) , Acquiring commercial premises (¥235M)
□□□□ Tokyo Branch Depreciation ¥60M (FY14)
□□□□ Plan in FY14: Tokyo branch unpaid expenses (¥450M), Operating base renovation(¥150M)□□□□
22
□□□□ Dividend payout ratio: 30% of consolidated net income
□□□□ (Previous:Dividend payout ratio 25% or minimum annual dividend ¥10 )
□□□□ FY13 annual dividend per share ¥29.5 □□□□ (2QE:¥5, Year-end: ¥24.5)
□□□□ FY14 forecast: EPS ¥125.52, annual dividend ¥38
□□□□
Returns to Shareholders
Unit:Yen
Copyright© Furusato Industries, Ltd. All Rights Reserved
37.55 78.82 88.10 97.68 125.5210.0 20.0 22.5 29.5 38.0
26.6% 25.4% 25.5% 30.2% 30.3%
0.00100.00200.00
11/3 12/3 13/3 14/3 15/3(Forecast) 15.0%20.0%25.0%30.0%EPSDividendDividend payout ratioAlways Pursuing the Best Service
Dividend policy changeDividend policy change::Dividend payout ratio Dividend payout ratio 25%⇒30%25%⇒30%
23Copyright© Furusato Industries, Ltd. All Rights Reserved
Always Pursuing the Best Service
FY2014 Forecasts
24
1,820
3,180
2,880
9,221
12,101
82,300
Full-yearForecast
FY14
+205
(435)
(436)
+15
(420)
(3,195)
Change
Y-o-Y
+28.7%
(20.0)%
(21.4)%
+0.3%
(6.4)%
(7.1)%
% change
+403
(204)
(227)
+243
+15
(25)
Change
vs. Full-year FY13
923
1,743
1,597
4,561
6,159
41,495
2H Forecast(Full-year forecastー1H actual)FY14
(6.1)%Ordinary income
% change
+0.1%Gross profit
Net income
Operating income
SG&A Expenses
Net sales
+28.4%
(7.3)%
+2.7%
(0.0)%
Copyright© Furusato Industries, Ltd. All Rights Reserved
40,80437,63437,42034,38830,117 -7.1%
41,495
+18.7%
44,690-4.0%
37,664
+14.3%
39,237+22.7%
34,337
0
25,000
11/3 12/3 13/3 14/3 15/31H 2H(Net sales)
Always Pursuing the Best Service
Consolidated Forecast
Rounded down to the nearest million yen
Sales decrease in 2HSales decrease in 2H due to special factors in 2H FY13 due to special factors in 2H FY13
25
(0.9)%(367)40,639
(7.4)%(1,616)20,364
Total sales
855
903
902
5,149
5,496
28,189
Full-year
Forecast
FY14
(126)
(14)
+697
(481)
(5)
(1,812)
Change
Y-o-Y
(18.8)%
(3.2)%
+688.3%
(15.7)%
(0.2)%
(11.8)%
% change
(154)
+23
+723
(375)
+56
(795)
Change
vs. Full-year FY13
549
433
798
2,577
2,986
13,567
2H Forecast(Full-year Forecastー1H Actual)FY14
+2.7%Other
% change
+1.0%
Machine and Tools for
Automotive
Operating income
Overseas
Housing Equipment
Industrial Equipment
(15.3)%
+405.2%
(6.8)%
(2.7)%
Copyright© Furusato Industries, Ltd. All Rights Reserved
20,27419,02518,86918,17316,572 -7.4%
20,364
+14.7%
21,981
-6.2%
19,169
+13.0%
20,427
+19.5%
18,080
0
15,000
11/3 12/3 13/3 14/3 15/31H 2H(Total Net Sales)
Always Pursuing the Best Service Consolidated Forecast by Segment①Equipment and Tools Business
Rounded down to the nearest million yen
Sales decrease in 2H due to special factors in 2H FY13 Sales decrease in 2H due to special factors in 2H FY13
26
+2.1%+30715,177
(2.5)%(212)8,244
Total sales
432
2,513
12,664
Full-year
Forecast
FY14
+28
(414)
+201
Change
Y-o-Y
+10.9%
(26.7)%
+2.9%
% change
+71
(168)
+476
Change
vs. Full-year FY13
286
1,138
7,105
2H Forecast(Full-year Forecastー1H Actual)FY14
(6.3)%Factory Automation
% change
Operating income
Machine Tool
+19.7%
+3.9%
Copyright© Furusato Industries, Ltd. All Rights Reserved
6,9326,4127,3916,0544,129-2.5%
8,244
+24.3%
8,456-12.4%
6,802
+31.0%
7,760
+50.0%
5,924
0
5,000
11/3 12/3 13/3 14/3 15/31H 2H(Total Net Sales)
Always Pursuing the Best Service Consolidated Forecast by Segment②Machine and Facility Business
Rounded down to the nearest million yen
Sales increase in fullSales increase in full--year FY14 based on backlog of ordersyear FY14 based on backlog of orders
27Copyright© Furusato Industries, Ltd. All Rights Reserved
%
change
+0.1%+3426,484
(9.6)%(1,366)12,886
Total sales
1,520
5,500
20,984
Full-year
Forecast
FY14
(322)
(107)
(1,258)
Change
Y-o-Y
(30.2)%
(3.7)%
(11.1)%
%
change
(171)
+348
(313)
Change
vs. Full-year FY13
747
2,809
10,077
2H Forecast(Full-year Forecastー1H Actual)FY14
+6.8%Piping Products
Operating income
Steel Frame Building Supplies
(10.1)%
(1.5)%
13,59712,19611,15810,1609,404 -9.6%
12,886
+21.9%
14,252+5.8%
11,692
+7.0%
11,048
+16.1%
10,322
0
10,000
11/3 12/3 13/3 14/3 15/31H 2H(Total Net Sales)
Always Pursuing the Best Service Consolidated Forecast by Segment③Construction and Piping Products Business
Rounded down to the nearest million yen
Operating loss due to lowering margin in inOperating loss due to lowering margin in in--house products house products
28Copyright© Furusato Industries, Ltd. All Rights Reserved
Growth Strategy
Always Pursuing the Best Service
29
Growth Strategy
Industrial EquipmentIndustrial Equipment::Demand expansion by providing addedDemand expansion by providing added--valuevalue
Copyright© Furusato Industries, Ltd. All Rights Reserved
Differentiation by business development with original proposal methods and enhancing convenience for users
Expanding sales area by establishing resident
offices
FY14 FY15
Promoting sales efficiency by improvement in
function of distribution centers
Expanding business fields covered with solution
proposal method
Enclosing end-users by launching EGPARTS
Reinforcing PB sales by developing overseas
manufacturers
Growing volume by fostering main dealers and
increasing transactions per customer
Tactic・measure
Differentiation by system
introduction
Advancing strategic
inventory
Differentiation by original
proposals
Market share up
FY16Strategy
Always Pursuing the Best Service
30
Housing EquipmentHousing Equipment::Tokyo fullTokyo full--fledged operation, differentiation with original methodfledged operation, differentiation with original methodss
Copyright© Furusato Industries, Ltd. All Rights Reserved
Differentiation by item diversification and market development
FY14 FY15
Enhancing options for customers by offering new
brands and categories
Enhancing added-value by in-house construction
Expanding profit structure by making Tokyo base
profitable
Tactic・measure
Market expansion
Developing new
manufacturers
Reinforcing construction function
FY16Strategy
Growth StrategyAlways Pursuing the Best Service
31
Machine ToolMachine Tool・・Factory AutomationFactory Automation::Demand expansion by market developmentDemand expansion by market development
Copyright© Furusato Industries, Ltd. All Rights Reserved
Differentiation by reinforcement of comprehensive proposal and original approach⇒Market share up
Expanding sales area by establishing resident
offices
FY14 FY15
Expanding business fields covered by solution
proposal method
Enclosing end-users by launching EGPARTS
Increasing the number of sales staff
Tactic・measure
Differentiation by original
proposal
Differentiation by system
introduction
Reinforcing sales function
FY16Strategy
Growth StrategyAlways Pursuing the Best Service
32
Steel Frame Building SuppliesSteel Frame Building Supplies::Securing stable earningsSecuring stable earnings
Copyright© Furusato Industries, Ltd. All Rights Reserved
Starting new product proposal system
FY14 FY15
Reinforcing inventory management efficiency by
utilizing inventory system
Improving production capabilities by renewal of
aging facilities
Development and sales of PB products
Launching wholesale>Alliance with retailers in
uncovered area
Reinforcing marketing to upstream industry>
market development in metropolitan area
⇒Setting up Tokyo sales office (FY14)
Tactic・measure
Providing new products
Developing distribution
channels to remote area
Reinforcing system
operation
Reinforcing production
capacity
Improving brand
recognition
FY16Strategy
Securing market share by restructuring added-value as core business
Growth StrategyAlways Pursuing the Best Service
33
Piping Products Piping Products ・・New FieldNew Field::Establishing profit structure for sustainable growthEstablishing profit structure for sustainable growth
Copyright© Furusato Industries, Ltd. All Rights Reserved
Reinforcing sales structure 3.Allocating sales
support staff
Reinforcing sales of machine and tools to piping
dealers
FY14 FY15
Fostering the 3rd pillar by the project team
Increasing inventory to respond to market needs
Reinforcing sales structure 2.Increasing the
number of specialized stuff for sale of piping
products
Reinforcing sales structure 1.Establishing sales
base
Tactic・measure
Researching and
fostering new business by
utilizing management
resources
Improving sales structure
of piping products by
marketing reinforcement
FY16Strategy
Realizing growth by increasing sales in Piping Products Business
and by fostering new business
Growth StrategyAlways Pursuing the Best Service
34Copyright© Furusato Industries, Ltd. All Rights Reserved
Reference
Always Pursuing the Best Service
35Copyright© Furusato Industries, Ltd. All Rights Reserved
225 234 211 175 176 194 225 207 167 166 185 166 155 166 205 223 233 223 241 152 159 170 1836 13 25 38 46 46 34 37 41 45484 379 364 451 533 599 641 625 507 331 415 487 48761 46 27 46 47
213 21051 55504 5175439 5582382382382382382382382375075075075073673673673664464464464453753753753783183183183192092092092090390390390384184184184174774774774762062062062051851851851854554554554543243243243202004006008001000
91/3 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
Gifu Shoji
G-net
Piping Products Business
Steel Frame Building Supplies Business
24 23 16 7 5 7 13 8 1 1 7 4 1 8 19 23 24 20 28 1 7 93 7 17 21 25 20 104 11 101 10.8 2 2 2.4 2.610101010 3333 0000 15151515 38383838 46464646 50505050 43434343 373737377777 22222222 22222222 31313131 2828282816.9 15.211.2 10.2020
4091/3 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
Furusato G-net Gifu Shoji 全体Forecast
-7
Reference①
Net Sales and Operating Income Trend
Net sales(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)
Operating income(Non-consolidated base, but total operating income after FY2000 on consolidated base)
Always Pursuing the Best Service
Rounded down to the nearest million yen
Aiming to recovery to the level before the Lehman’s fall
Forecast
36
4,311 5,092 5,447 4,874 4,684 5,476 5,836 5,212 5,199 5,959 6,263 5,428 5,644 6,551 7,369 6,882 6,360 7,2361,802 2,327 2,624 3,300 2,834 3,220 3,334 4,426 3,444 3,947 3,005 3,796 2,995 3,417 2,778 5,678 2,442 4,4897,749 8,822 8,709 9,370 8,744 9,429 10,228 10,198 9,513 9,356 9,553 9,615 9,163 9,862 10,548 11,432 9,811 10,46313,86913,86913,86913,86916,24716,24716,24716,24716,78816,78816,78816,78817,54917,54917,54917,54916,26216,26216,26216,26218,12518,12518,12518,12519,39919,39919,39919,39919,83719,83719,83719,83718,15618,15618,15618,15619,26319,26319,26319,26318,82318,82318,82318,82318,84118,84118,84118,84117,80317,80317,80317,80319,83119,83119,83119,83120,69620,69620,69620,69623,99323,99323,99323,99318,61518,61518,61518,61522,18922,18922,18922,189
05,00010,00015,00020,00025,000
11/3 1Q 2Q 3Q 4Q 12/3 1Q 2Q 3Q 4Q 13/3 1Q 2Q 3Q 4Q 14/3 1Q 2Q 3Q 4Q 15/3 1Q 2Q
Equipment and Tools BusinessMachine and Facility BusinessConstruction and Piping Products Business
Copyright© Furusato Industries, Ltd. All Rights Reserved
-159 98 140 51 122 241 248 170 51 304 361 222 196 425 564 505 292 480-50 11 21 73 16 75 57 124 57 133 50 142 7 95 22 235-33 179
-26 152 101 242 120 249 277 400 173 248 200 275 90 243 230 445 102 204289289289289 288288288288 396396396396 286286286286 593593593593 609609609609 724724724724 308308308308 713713713713 621621621621 569569569569 294294294294 779779779779 832832832832 1,2011,2011,2011,201387387387387 894894894894
-207-207-207-207-25002505007501,0001,25011/3 1Q 2Q 3Q 4Q 12/3 1Q 2Q 3Q 4Q 13/3 1Q 2Q 3Q 4Q 14/3 1Q 2Q 3Q 4Q 15/3 1Q 2Q
AdjustmentEquipment and Tools BusinessMachine and Facility BusinessConstruction and Piping Products Business
Reference②Net Sales・Operating Income Quarterly Trend
Net sales
Operating income
Always Pursuing the Best Service
Rounded down to the nearest million yen
EquipmentEquipment・・Tools and ConstructionTools and Construction・・Piping Products: Sales and profit increasePiping Products: Sales and profit increase
37Copyright© Furusato Industries, Ltd. All Rights Reserved
29,208 28,372 28,750 29,613 30,777-1,407 569 1,171 1,288 1,4164.4%4.1%2.0%
-4.8%4.6%
-30,000-15,000015,00030,00045,000
10/3 11/3 12/3 13/3 14/3-10.0%-5.0%0.0%5.0%10.0%15.0%Average shareholders equityNet incomeROE
ROE slight increaseROE slight increase
Reference③ ROE
Rounded down to the nearest million yen
Always Pursuing the Best Service
38Copyright© Furusato Industries, Ltd. All Rights Reserved
99.1
95.9
94.6
96.1
97.8
99.6
102.5
98.6
96.7
98.4
99.0
100.7 100.8
103.6
104.0
94.1
98.1
108.1
107.9
93.4
80.0
90.0
100.0
110.0
FY12 1Q 2Q 3Q 4Q FY13 1Q 2Q 3Q 4Q FY14 1Q 2Q
Industrial Production Transport Equipment
Year 2010=100
Reference④Indices of Industrial Production
Always Pursuing the Best Service
Production down following the lastProduction down following the last--minute rise in demand in 4Q FY13minute rise in demand in 4Q FY13
39Copyright© Furusato Industries, Ltd. All Rights Reserved
7315 7,208
4,113
1,890
3,5354,188
3,6284,220
7429
8,730
5,576
3,581
7,600
8,922
7,769
7,828
14,74514,74514,74514,745
12,04812,04812,04812,04811,39811,39811,39811,398
13,11113,11113,11113,111
11,13611,13611,13611,136
5,4715,4715,4715,471
9,6909,6909,6909,690
15,93915,93915,93915,939
0
5000
10000
15000
20000
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Domestic order Overseas order縦棒 3
1,338(+21.2%)1,142(+29.1%)1,061(+25.0%)1,169(+40.5%)1,104(+18.9%)884(-13.1%)849(-13.2%)832(-20.5%)928(-14.7%)1,017(-5.2%)0
1,000
FY12 1Q 2Q 3Q 4Q FY13 1Q 2Q 3Q 4Q FY14 1Q 2QDomestic order
Reference⑤Orders Received for Machine Tool
Always Pursuing the Best Service
Rounded down to the nearest 10 million yen
Orders received continues to recover
Figures in ( )indicates % Y-o-Y
40
653653653653 616616616616 410410410410 420420420420 426426426426 459459459459 532532532532 255255255255
99,00082,000 82,000
68,00080,00063,000
75,000 74,000
0500
10001500
2007 2008 2009 2010 2011 2012 2013 2014 40,00050,00060,00070,00080,00090,000100,000Steel frame used for building H-beam price
Copyright© Furusato Industries, Ltd. All Rights Reserved
Unit:10Kt
158158158158 146146146146 119119119119 99999999 97979797 102102102102 119119119119 127127127127220220220220 164164164164 95959595 102102102102 113113113113 114114114114 138138138138 128128128128118118118118 165165165165 99999999 113113113113 111111111111 122122122122 140140140140158158158158 141141141141 97979797 106106106106 105105105105 121121121121 1361361361360
50010001500 1Q 2Q 3Q 4Q
Reference⑥Steel Frame Demand and Product Price Trend
Always Pursuing the Best Service
Demand steady recovery / Price flatDemand steady recovery / Price flat
Unit:Yen
*H-beam price: Tokyo high price in Dec. (Price in FY14 as of the end of Sep.)
41
+6.3%+4627,809
Liabilities
+2.1%+62229,632
Total assets
+0.7%+15921,823
Net assets
+29.7%+121529
Net income
[(1.1)P]
+184
+151
+114
+266
+1,397
Change
Y-o-Y
73.6%
870
772
2,238
3,011
13,609
1H
FY14
+26.9%Ordinary income
% change
+9.7%Gross profit
Net assets to total assets
Operating income
SG&A Expenses
Net sales
+24.4%
+5.4%
+11.4%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Non-consolidated ResultsFurusato Industries
Always Pursuing the Best Service
Rounded down to the nearest million yen
*Y-o-Y in B/S items indicates figures vs. FY13E.
42
(10.9)%(1,382)11,304
Liabilities
(4.3)%(1,001)22,298
Total assets
+3.6%+38010,993
Net assets
+21.3%+47268
Net income
[+3.8P]
+66
+57
+151
+208
+1,671
Change
Y-o-Y
49.3%
469
389
2,211
2,601
25,260
1H
FY14
+16.6%Ordinary income
% change
+8.7%Gross profit
Net assets to total assets
Operating income
SG&A Expenses
Net sales
+17.3%
+7.3%
+7.1%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Non-consolidated ResultsG-net
Always Pursuing the Best Service
Rounded down to the nearest million yen
*Y-o-Y in B/S items indicates figures vs. FY13E.
43
(7.9)%(145)1,682
Liabilities
(0.4)%(19)4,242
Total assets
+5.2%+1252,559
Net assets
+34.3%+27107
Net income
[(0.6)%]
(37)
(41)
+1
(40)
+60
Change
Y-o-Y
60.3%
94
62
266
329
2,509
1H
FY14
(28.6)%Ordinary income
% change
(10.8)%Gross profit
Net assets to total assets
Operating income
SG&A Expenses
Net sales
(40.0)%
+0.7%
+2.5%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Non-consolidated ResultsGifu Shoji
Always Pursuing the Best Service
Rounded down to the nearest million yen
*Y-o-Y in B/S items indicates figures vs. FY13E.
44
Corporate Planning Division
TEL :06-6946-9608
FAX :06-6946-9780
E-mail :[email protected]
Copyright© Furusato Industries, Ltd. All Rights Reserved
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.
Always Pursuing the Best Service