Financial Results FY2018 Business Plan FY2019€¦ · ‣Active Market：Electronic materials ・Consolidated and HMC ・Domestic booking is specialized for Ceramic capacitor and

Financial Results FY2018 ＆ Business Plan FY2019

Nov. 27th 2018

Process Technology for Tomorrow

President : Yoshio Hosokawa http://www.hosokawamicron.co.jp/en/

Ⅰ. Financial Results FY2018 Ⅱ. Business Plan FY2019 Ⅲ. Reference material

Contents

Financial Results FY2018

Ⅰ．Financial Results FY2018

１

Actual % Actual % Plan Variance %

Booking 55,813 56,382 +569 101.0%

Backlog 26,707 26,361 -346 98.7%

Sales 49,519 56,852 54,500 +7,333 114.8%

Ope income 5,045 10.2% 6,541 11.5% 5,800 +1,496 129.7%

Ordinary income 5,219 10.5% 6,656 11.7% 5,800 +1,437 127.5%

Net income 3,572 7.2% 4,205 7.4% 3,800 +633 117.7%

【Exchange rate】US$ to yen 111.26 110.45 110.00

EURO to yen 122.85 131.48 125.00

FY2017 FY2018

(million yen）

cf. FY2018/FY2017

Financial Results FY2018 (consolidated)

２

215 223 211 212 231

271

234 262 262 234 264

297

34.8% 34.1% 34.4%35.7%

36.4%36.9%

27.3% 27.1%

29.3%27.5%

26.2%

25.4%

7.5% 6.9%

5.2%

8.2%10.2%

11.5%

0

100

200

300

400

500

600

0%

5%

10%

15%

20%

25%

30%

35%

40%

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Sa

les（

millio

n y

en）

ＧＰ

Ｒ、

SG

A R

atio

、O

pe. In

com

e R

atio

（%

）

Sales(1stH) Sales(Full Year) GPR SGA Ratio Ope. Income ratio

449 485 446473495

568

Financial Results FY2018 (consolidated)

US$ to yen 92.82 102.33 119.30 111.89 111.26 110.45

Euro to yen 121.82 138.82 136.84 124.11 122.85 131.48

３

(10)

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FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Ope. In

co

me (m

illion y

en)

Bo

okin

g・S

ale

s・B

acklo

g (m

illion y

en)

Backlog Booking Sales Ope. Income

Financial Results (consolidated)

４

0

100

200

300

400

500

Booking Sales Booking Sales Booking Sales

FY2016 FY2017 FY2018

Bo

okin

g, S

ale

s, B

acklo

g (m

illion y

en)

1stH. 2ndH. Backlog

Booking, Sales, Backlog

-1%

1%

3%

5%

7%

9%

11%

13%

15%

0

10

20

30

40

50

60

FY2016 FY2017 FY2018

Ope

. Incom

e R

atio (%

)

Ope

. Incom

e (m

illion ye

n)

2ndH Ope. Income

1stH Ope. Income

Ope. Income Ratio

Ope. Income, Ope. Income Ratio【Point】

‣ Good performance for Automobile parts (Battery, Motor, Tire, etc.)

‣ Good performance for Europe (especially in Germany and Italy)


Sales Ratio of powder processing business ：75.6％ <Powder Processing>

５

0

20

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60

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100

120

140

160

Booking Sales Booking Sales Booking Sales

FY2016 FY2017 FY2018

Bookin

g, Sale

s, Bac

klog (m

illion ye

n)

1stH 2ndH Backlog

Booking, Sales, Backlog

10%

12%

14%

16%

0

6

12

18

FY2016 FY2017 FY2018

Ope

. Incom

e R

atio (%

)

Ope

. Incom

e (m

illion ye

n).

2ndH Ope. Income 1stH Ope. Income Ope. Income Ratio

Ope. Income, Ope. Income Ratio

【Point】

‣ Keeping well for America by big orders

‣ Situation for China, India, the Middle and Near East despite their risks

‣ Increasing of both in sales and profits by the abundance of backlog at the beginning of the term


Sales Ratio of blown film Business：24.4％ <Blown Film>

６

Continuously growing up of Blown Film Business

-400

0

400

800

1,200

1,600

2,000

2,400

2,800

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Backlog

Booking

Sales

Ope. Income

(million yen) (million yen)

Bo

okin

g, Sales, Backlo

g

Op

e. Inco

me

Fiscal Year

７

136 125

6686

123 115 113 106123 119

175 178

2318

11

14

19 23 26 38

52 56

92 86

14

12

4

2

6 6 5 9

0

50

100

150

200

250

300

2,007 2,008 2,009 2,010 2,011 2,012 2,013 2,014 2,015 2,016 2,017 2,018

Fiscal year

Backlog

Confectionery

Blown Film

Powder Processing

（million yen）

381 382

244272

337 323 331 342 352 342

406432

78 66

42

50

54 66 7199

125 127

152132

36 39

12

18

21 22 1940

24

0

100

200

300

400

500

600

2,007 2,008 2,009 2,010 2,011 2,012 2,013 2,014 2,015 2,016 2,017 2,018

Fiscal year

Booking

Confectionery

Blown Film

Powder Processing

(million yen)The end of FY2015

Confectionery business sold

The end of FY2015

Confectionery business sold

Financial Results (by business segment, consolidated)

８

(million yen)

FY2017 FY2018 cf. FY2018/FY2017

Japan Sales 12,125 14,013 115.6%Occupation ratio 24.5% 24.6%

America Sales 11,277 12,004 106.4%Occupation ratio 22.8% 21.1%

Europe Sales 17,851 21,991 123.2%Occupation ratio 36.0% 38.7%

Asia & Sales 8,264 8,842 107.0%Other Occupation ratio 16.7% 15.6%

Total Sales 49,519 56,852 114.8%

Sales by Destination (consolidated)

９

‣Active Market：Electronic materials ・Consolidated and HMC

・Domestic booking is specialized for Ceramic capacitor and Magnetic material

Financial Results (consolidated/HMC Japan)

<Active Market : Booking situation by market>

※ Confectionery business isn't included in a food.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2012 2013 2014 2015 2016 2017 2018

Bo

okin

g (millio

n yen

)

【Consolidated】

0

500

1,000

1,500

2,000

2,500

2014 2015 2016 2017 2018

Bo

okin

g (millio

n yen

)

Pharma

Food

Magneticmaterial

Lithium-ionBattery

Chemical

【HMC】

Fiscal Year Fiscal Year

１０

The highest past profit with high growth rate by 151.6% year-on- year. (compared to the same period last year)

‣Many big and high-profit orders

‣After sales(Maintenance service) business in good condition

‣Active market is for Electronic materials and Food

Financial Results (HMC Japan)

(million yen)

FY2017Actual Actual cf. FY2018/FY2017

Backlog (Beginning of the term) 4,146 5,659

Booking 14,663 15,459 105.4%

Sales 13,150 14,940 113.6%

Gross Profit 5,540 6,583 118.8%

Gross pofit ratio 42.1% 44.1%

Ope. Income 1,399 2,122 151.6%

Ope. Income ratio 10.6% 14.2%

FY2018

１１

65

59 56

65 63 72

52 72 57

60 68

39.2%

41.2% 41.4% 42.5% 42.1%44.1%

36.4%31.9%

36.1%

32.4%

31.5%

29.9%

2.8%

9.3%

5.3%

10.1% 10.6%

14.2%

0

50

100

150

200

0%

10%

20%

30%

40%

50%

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Sa

les

(millio

n y

en

)

ＧＰ

Ｒ, G

SA

Ratio, O

pe. In

com

e R

atio (%)

Sales (1st H) Sales (2nd H) Gross Profit

G&A Ratio Ope. Income Ratio

131117

112 125

149

131

77

Financial Results (HMC Japan)

Business Plan FY2019

Ⅱ．Business Plan FY2019

【Business Policy】

The Hosokawa Micron Group enhance its brand strengthen and profitability through the implementation of global marketing of the

entire Group’s products

The 16th Mid-term Business Plan (FY2018-FY2020)

● Expand business into emerging markets and new growth sectors

by integrating our global marketing effort

● Expand Aftermarket and Toll processing businesses and develop comprehensive services aiming for further customer satisfaction

● Structure and execute Group strategies for sales, engineering, production, R&D and Finance

● Implement cost reduction and high-value-added product & technology development

● Optimize group business operations by the continuous improving efficiency of work and manufacturing process

１２

１３

Business Plan of Mid-term & FY2019 (consolidated)

(100 million yen) (100 million yen)

FY2018 FY2018 FY2020 FY2018 FY2019

Plan※8/9 Forcast

upward

adjustmentPlan Actual Plan

Sales 520 545 560 Sales 568 560

Ope. Income 53 58 56 Ope. Income 65 56

(per Sales) 10.1% 10.1% 10.0% (per Sales) 11.5% 10.0%

Ordinary Income 53 58 56 Ordinary Income 66 56


Net Income 36 38 39 Net Income 42 40


【Exchange rate】【Exchange rate】US$ 110.00 110.00 110.00 US$ 110.45 110.00EURO 125.00 125.00 125.00 EURO 131.48 130.00

The 16th Mid-term Business Plan (FY2018-FY2020) FY2019

１４

Business Plan FY 2019

Global Marketing Strategy

Introduce IoT to Powder Process Technology

Developing of high competitive product based by market needs

Develop and sale product, technology, application in cooperate with the group

Constructed IoT technology “HOSOKAWA GEN4” as small system for demonstration experiment

⇒ Advance data analysis, provide total solution in powder process business

AI analysis

Cloud

Improve productivity

Saving Energy Preventive

maintenance

１５


Founded the representative office in Thailand ‣ ASEAN countries with high expectations as growth market

Strengthen brand in South-East Asia area to become local subsidiary in Thailand

‣ Prompt sales development close to the local customers

‣ Expand into Pharmaceutical and Automotive related market

‣ Business expansion by penetration of our product and technology

‣ Focus on chemistry, resin, food

‣ Enhance guidance and technology support to agent and cooperative company

Important market for machine sales and after sales


<After Sales Business>

Order trends (consolidated)

１６

Entire group strengthen this business as source of revenue expansion

‣ Thorough management of big projects sales and due date

‣ Start raising selling price of the main parts

‣ Founded the representative office in Thailand for business development to ASEAN countries as important market in growth strategy

<Approach>

11.4 billion yen

6,000

7,000

8,000

9,000

10,000

11,000

12,000

20

14

20

15

20

16

20

17

20

18

20

19

Pla

n

20

20

Pla

n

Bo

okin

g (millio

n yen

)

Fiscal Year


<Toll Processing Business>

Rebuild continual business and challenge new sector for expansion of revenue base

‣ Installed new machine only for high-value-added processing

‣ To potential market (food, etc.)

<Approach>

Order trends (consolidated)

１７

2.4 billion yen

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

20

14

20

15

20

16

20

17

20

18

20

19

Pla

n

20

20

Pla

n

Bo

okin

g (millio

n yen

)

Fiscal Year


<Focus Area> China, Korea & Taiwan, South-East Asia Market 【HMC】

１８

Strengthen of Global Marketing ‣ Focus on China and South-East Asia area

‣ Cooperation with Asian Sales Companies

‣ Develop sales promotion activities separate for product, technology and market

【Consolidated】

0

200

400

600

800

1,000

1,200

1,400

2014 2015 2016 2017 2018 2019Plan

2020Plan

Sales (m

illion

yen)

China

Korea&Taiwan

South-East Asia

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014 2015 2016 2017 2018 2019Plan

2020Plan

Sales(m

illion

yen)

China

Korea & Taiwan

South-East Asia

Fiscal Year Fiscal Year


Construction Cost approx. 4 billion yen in total

‣December, 2018 1st phase started

‣December, 2019 2nd phase will be started

⇒ December, 2020 will be completed

<Osaka Factory Renewal Project>

１９

Ensuring safety, Improvement of working environment,

Development of productive efficiency

Business Plan FY2019 prospect for decrease in sales and profit

‣ Sales 1.5% below YoY

‣ Sale and administration cost will increase by domestic and overseas main subsidiary companies

⇒ Operating income 14.4%, Net income 4.9% decrease

We need to continue growing!

for increase in sales and profit FY2019


1.Increase sales, 2.Wasted reduction, 3.Challenge new things

Spare no expense to necessary / improve us

<Point of Action FY2019>

２０


Capital Investment ‣Osaka factory renewal (approx.4 billion yen, Japan)

‣ Reinforcement of Logistics Center(Germany), etc.

<R&D cost, Capital Investment, Depreciation (consolidated)>

84.5

78.3 73.0 83.4 91.6 89.3 73.9

7.98 9.24

95.0

83.5

128.4 130.3

244.1

175.7 174.1

67.0

118.1

199.6

45.00

112.0 93.5 88.1 99.5

114.7 112.8 98.3 100.3 110.2 12.00

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

forecast

（100 million yen）

Fiscal Year

R&D Cost

Capital Investment

Depreciation

２１

Shareholder special benefit system

Gift being worth 15,000yen

<Implementation of shareholder special benefit system>

Introduce shareholder special benefit system

to improve attraction of investment in our stock and hold the stocks long-term by many people

Based on number of holding stock and classifying of holding period, provide our group company’s (Hosokawa Micron Cosmetics Corp.) products

Ex.) Cosmetics, Shampoo, Conditioner, etc.

Service Contents as special benefit

２２

Documents

Financial Results FY2018 Business Plan FY2019€¦ · ‣Active Market：Electronic materials ・Consolidated and HMC ・Domestic booking is specialized for Ceramic capacitor and