FY2013 Earnings Presentation - Furusato · Construction and Piping Products Construction and Piping...

FY2013

Earnings Presentation(April 1, 2013 to March 31,2014)

May 8, 2014

Furusato Industries Ltd.

Always Pursuing the Best Service

2

Contents

Copyright© Furusato Industries, Ltd. All Rights Reserved

FY2013 Consolidated Results

・Consolidated results Ｐ. ４

・Sales by segment Ｐ. ５

・Gross profit by segment Ｐ. ６

・SG&A Expenses Ｐ. ７

・Operating income by segment Ｐ. ８

・Segment ①Equipment and Tools Ｐ. ９

・Segment ②Machine and Facility Ｐ.１１

・Segment ③Construction and Piping Products Ｐ.１３

・Operating income～net income Ｐ.１５

・Consolidated CF Ｐ.１６

・Consolidated B/S Ｐ.１７

・Capital investment and depreciation and amortization Ｐ.１９

・Returns to shareholders Ｐ.２０

FY2014 Forecasts

・Consolidated Forecast Ｐ.２２

・Segment①Equipment and Tools Ｐ.２３

・Segment②Machine and Facility Ｐ.２４

・Segment③Construction and Piping Products Ｐ.２５

Growth Strategy

・Industrial Equipment Ｐ.２７

・Housing Equipment Ｐ.２８

・Machine Tool・Factory Automation Ｐ.２９

・Steel Frame Building Supplies Ｐ.３０

・Piping Products Ｐ.３１

Reference Ｐ.３２

Non-consolidates results

Subsidiary results Ｐ.３９


3Copyright© Furusato Industries, Ltd. All Rights Reserved

Full-year FY2013

Consolidated Results


4

Significant increase at fiscal year-end

Net sales Full-year +9.6% Y-o-YRemained flat by 3Q (+3.7% Y-o-Y), but +27.3% Y-o-Y due mainly to a last-minute surge in demand before consumption tax hike

Gross profit +10.8% Y-o-Y. Gross profit margin 14.7% (+0.2pts.) (Main factor)→Construction and Piping Products Business with high profitability

% of total sales +1.7pts., Gross profit ratio +0.5 pts.

Operating income +40.4% Y-o-Y, slight increase in SG&A Expenses

Net income Falling short of forecastNon-operating income/expenses +¥277M, Extraordinary income/loss -¥522M

Consolidated Results

+128

+896

+894

+278

+1,173

+7,240

Change

Y-o-Y

+9.9％

+36.0％

+40.4％

+3.2％

+10.8％

+9.6％

% change

(38)

+819

+757

+107

+865

+6,075

Change

vs. Forecast（As of Oct.31）

1,416

3,384

3,107

8,977

12,085

82,325

Full-year

FY13

+32.0％Ordinary income

% change+7.7％Gross profit

Net income

Operating income

SG&A expenses

Net sales

(2.6)％

+32.2％

+1.2％

+8.0％


Rounded down to the nearest million yen


5

□□□□ On the recovery trend from the bottom following Lehman shock, the Equipment and Tools Business played a leading role, but decelerated due to the end of subsidy for eco-friendly cars and anti-Japanese riot

□□□□ The Construction and Piping Products Business accelerated recovery based on a full-fledged reconstruction in the affected area by the Great East Japan Earthquake from 2H FY13

□□□□ The Equipment and Tools Business turned to be on an upward trend again.Orders received in the Machine and Facility Business showed a recovery trend from 2H FY13

□□□□ Net sales in FY13 vs.FY07 (before Lehman shock): The Equipment and Tools Business 96.9%, The Machine and Facility Business 65.5%, The Construction and Piping Business 97.8％

Consolidated Sales by Segment


18,641

(-35.1%)

19,726

(+5.8%)

21,209

(+7.5%)

22,851

(+7.7%)

26,449

(+15.7%)

7,165

(-56.0%)

10,054

(+40.3%)

13,815

(+37.4%)

14,194

(+2.7%)

14,869

(+4.8%)

41,006

(+7.8%)38,039

(-1.5%)

38,600

(+11.4%)34,652

(+24.0%)27,938

(-26.6%)

82,32582,32582,32582,325

(+9.6%)75,08475,08475,08475,084

(+2.0%)

73,62573,62573,62573,625

(+14.2%)64,45464,45464,45464,454

(+19.9%)

53,77653,77653,77653,776

(-35.3%)

0

25,000

50,000

75,000

100,000

10/3 11/3 12/3 13/3 14/3

Total

Equipment and Tools

Machine and Facility

Construction and Piping Products

Construction and Piping Products Business: Double-digit growth

+15.7％26,449（32.1％）Construction

and Piping

+9.6％82,325（100％）Total

+4.8％14,869（18.1％）Machine and Facility

+7.8％41,006（49.8％）Equipment and Tools

Y-o-YNet sales（% of total）14/3


Figures in （）indicates % Y-o-Y


6

□□□□ Gross profit +10.8% Y-o-Y, Gross profit margin +0.2pts. Y-o-YGrowth rate of gross profit surpassed that of net sales.

□□□□ Reason for improved gross profit margin: In Construction and Piping Products Business (high profitability)

Improved in composition in total net sales (+1.7pts.) and gross profit margin (+0.5pts.)

□□□□ Gross profit margin in the Construction and Piping Products Business:+2.3 pts. vs. FY09Gradual improve in factory operating ratio from a drop following Lehman Shock

□□□□ Gross profit in FY13 91.5% vs.FY07 (before Lehman shock)

Consolidated Gross Profit by Segment


3,794

4,106

(+8.2%)

4,731

(+15.2%)

5,084

(+7.4%)

6,007

(+18.1%)

613

846(+37.9%)

1,092(+29.1%)

1,220(+11.7%)

1,209(-1.0%)

4,871

(+5.7%)4,606

(-2.0%)

4,701

(+15.3%)

4,077

(+25.7%)

3,244

12,08512,08512,08512,085

(+10.8%)10,91210,91210,91210,912

(+3.7%)

10,52610,52610,52610,526

(+16.4%)

9,0469,0469,0469,046

(+17.9%)

7,6747,6747,6747,674

(-41.6%)

0

10,000

10/3 11/3 12/3 13/3 14/3

Figures in （） indicates % Y-o-Y ＊Y-o-Y in FY09 is not shown due to change of segment classification from FY09.

14.3%

14.0%

14.3%

14.5%

14.7%

Gross profit marginProfit increase mainly in the Construction and Piping Products Business

－(2)Adjustment

+18.1%6,007（22.7%）Construction

and Piping

+10.8%12,085（14.7%）Total

-1.0％1,209（8.1%）Machine and Facility

+5.7%4,871（11.9%）Equipment and Tools

Y-o-YGross profit （%）14/3

Rounded down to the nearest million yenEquipment and Tools Business

Machine and Facility Business

Construction and Piping Products Business


7

929(-22.5%) 1,085(+16.8%) 1,038(-4.4%) 1,146(+10.4%) 1,265(+10.4%)

5,181

(-4.7%)

5,147

(-0.7%)

5,183

(+0.7%)

5,309

(+2.4%)

5,431

(+2.3%)

2,280

(+1.7%)

2,242

(+7.4%)

2,089

(+2.1%)

2,045

(-12.7%)

2,343

(-13.2%)

8,9778,9778,9778,977

(+3.2%)

8,6998,6998,6998,699

(+4.7%)

8,3118,3118,3118,311

(+0.4%)

8,2788,2788,2788,278

(-2.1%)

8,4558,4558,4558,455

(-9.5%)

0

5,000

10,000

10/3 11/3 12/3 13/3 14/3

Sales expenses Personal expenses Other SG&A Expenses15.7% 12.8% 11.3% 11.6% 10.9%% of SG&A Ex.

□□□□ Sales expenses +¥278M (+3.2%) Y-o-Y due to an increase in freightage and packing expenses along with sales growth

□□□□ SG&A Expenses to net sales: 10.9% (-0.7pts.)

Consolidated SG&A Expenses


Figures in （）indicates % Y-o-Y.

Slight increase mainly in variable cost

+10.4%1,265（14.1%）Sales

expenses

+3.2%8,977（100%）Total

+2.3%5,431（60.5%）Personal expenses

+1.7%2,280（25.4%）Other SG&A Expenses

Y-o-YSG&A Ex.（%）14/3



8

□□□□ Operating income +¥894M (+40.4% Y-o-Y) Gross profit +10.8% Y-o-Y vs. FY12, SG&A Expenses to net sales -0.7pts. Y-o-Y

□□□□ Operating income to net sales 3.8% (+0.9 pts. vs. FY12)

□□□□ Operating income in FY13 vs.FY07 (before Lehman shock): 72.0%


-222

130

782

(+499.9%)

940

(+20.1%)

1,691

(+79.9%)

-205

56

274(+383.5%)

384(+40.1%)

361(-6.1%)

1,009

(+12.5%)

897

(-14.3%)

1,047

(+123.4%)

468

-467

3,1073,1073,1073,107

(+40.4%)

2,2122,2122,2122,212

(-0.1%)

2,2152,2152,2152,215

(+188.7%)

767767767767

-780-780-780-780

-1,000

0

1,000

2,000

3,000

10/3 11/3 12/3 13/3 14/3

TotalEquipment and Tools BusinessMachine and Facility BusinessConstruction and Piping Products BusinessOperating income to net sales +0.9 pts.0.9 pts.

－45Adjustment

+79.9％1,691（6.4％）Construction and Piping

+40.4％3,107（3.8％）Total

-6.1％361（2.4％）Machine and Facility

+12.5％1,009（2.5％）Equipment and Tools

Y-o-YOperating income（%）14/3


Consolidated Operating Income by Segment

Figures in （）indicates % Y-o-Y.


9

□□□□ Equipment and Tools BusinessThe indices of industrial production tuned to increase from mid of FY13 and remained to the year-endNet sales of the Industrial Equipment Business increased due to a last-minute rise in demand

□□□□ Machine and Tools for Automotive BusinessThe indices of industrial production in transportation machine industry turned to a double-digit increase following determination of consumption tax rise.Net sales of the Machine and Tools for Automotive increased; 1H (+8.9%) →2H（+20.0%）

□□□□ Housing Equipment BusinessDemand for new housing and remodeling 1H +25.9%, 2H +25.4%

Nagoya favorable (+30.9%), Tokyo favorable start after establishment in April 2013

Segment Breakdown①Equipment and Tools Business

+2,967

+132

+18

+1,126

+699

+990

Change

Y-o-Y

+7.8％

+17.7％

+11.6％

+25.6％

+14.7％

+3.5％

% change

+2,697

+65

+5

+582

+495

+1,548

Change

vs. Forecast（As of Oct..31）

41,006

879

178

5,524

5,439

28,984

Full-year

FY13

+8.0％Other

% change+10.0％

Machine and Tools forAutomotiveTotal sales

OverseasHousing Equipment

Industrial Equipment

+7.0％

+3.1％

+11.8％

+5.6％


Net sales increase in 2H FY13Rounded down to the nearest million yen



+15.4%+15.4%+15.4%+15.4%

8,012

+8.1%

7,368

+0.3%

7,152

-9.2%

6,450

0

5,000

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Industrial Equipment

+24.1%+24.1%+24.1%+24.1%

1,600+15.7%

1,391

+13.9%

1,201

+4.5%

1,245

0

1,000

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Machine and Tools

for Automotive

+32.9%+32.9%+32.9%+32.9%

1,554

+18.4%

1,504+27.7%

1,236

+24.2%

1,229

0

1,000

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Housing Equipment

The Indices of Industrial Production Turned to Y-o-Y increase in July

Moderate increase (Reference④）

Industrial Equipment BusinessNet sales 1H(-4.4% Y-o-Y), 2H(+11.8% Y-o-Y)Metalworking Tool (Core field) 2H (+16.9% Y-o-Y)

Transport Equipment Y-o-Y decrease by Aug., double-digit growthin Sep., remained favorable （Reference④）

Machine and Tools for Automotive Business

Net sales double-digit growth after 2Q, Significant increase in 4Q

Demand for new hosing and remodeling favorable

Housing Equipment BusinessNet sales favorable through the yearSignificant increase in 4Q

Significant rise in 4Q Machine & Tools for Automotive, Housing Equipment


Segment Breakdown①Equipment and Tools Business


11

□□□□ Machine Tool

Domestic orders received: Turned to increase from mid of FY 13, remained double-digit Y-o-Y increase due to subsidy for capital investment

Machine Tools BusinessOrders received double-digit Y-o-Y increase in Aug., net sales significant increase in 4QAdjustment by transfer from Factory Automation +4.3％ Y-o-Y

□□□□ Factory AutomationSales increase in 4Q vs.3Q +55.5％Adjustment by transfer +6.4％ Y-o-Y

+675

（324）

+999

Change

Y-o-Y

+4.8％

（10.8）％

+8.9％

% change+1,612

+406

+1,206

Change

vs. Forecast（As of Oct..31）14,869

2,681

12,187

Full-year

FY13

+17.9％Factory Automation

% changeTotal sales

Machine Tool

+12.2％

+11.0％


Rebound in orders received due to policy effect

※Transfer from a part of Factory Automation Business (¥518M) to Machine Tool Business in FY13


Segment Breakdown②Machine and Facility Business



+69.4%+69.4%+69.4%+69.4%

4,733

-4.3%

2,170

-16.6%

2,750

-10.4%

2,532

0

2,500

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Machine Tool

（Net sales）

-5.7%-5.7%-5.7%-5.7%

944

-17.5%

607

+2.5%

666

-25.0%

462

0

1,000

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Factory Automation

Domestic orders received

Jul.-Sep. +18.9%, Oct.-Dec. +40.5%,Jan.-Mar. +25.0%（Reference⑤）

Machine Tool BusinessNet sales 4Q +69.4% Y-o-Y, Full-year +8.9% Y-o-Y

Machine Tool Business Remained at high level after Aug.

Order backlog at year-end¥3,307M (+14.4 % Y-o-Y)

Factory Automation BusinessNet sales significant increase in 4QAdjustment in partly transfer to Machine Tool Business from Factory Automation Full-year +6.4％

Order backlog at year-end ¥619M（+39.1%）

+23.3%+23.3%+23.3%+23.3%

2,980

+48.7%

3,629+22.9%

3,113-4.9%

2,574

0

2,500

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Machine Tool

（Orders received）

High level in orders received at year-end in both businessesRounded down to the nearest million yen

Segment Breakdown②Machine and Facility Business


13

□□□□ Steel Frame Building Supplies BusinessDemand for steel frame for buildings +15.9%, Steel product price moderate increaseSteel Frame Building Supplies Business +16.1%

In-house productsBrace：Volume +10.4%, Unit price +0.8％⇒Net sales +11.0％

Purchasing suppliesHigh strength bolts：Volume +25.4％, Unit price +1.0％⇒Net sales +26.7％Welding supplies：Volume +16.0%, Unit price -2.0％⇒Net sales +13.6％

□□□□ Piping Products Business1H flat (-0.1%) vs. FY13, 2H significant increase（+28.2％), Achieved ¥5B for the first time

+3,597

+640

[+2,478][+479]+2,957

Change

Y-o-Y

+15.7％

+14.2％

[+18.3％][+9.9％]+16.1％

% change

+1,765

+416

[+1,352][-4]+1,348

Change

vs. Forecast（As of Oct..31）

26,449

5,151

[15,996]

[5,301]

21,298

Full-year

FY13

+8.8％Piping Products

% change[-0.1％][In-house products]

Total sales

[Purchasing supplies]

Steel Frame Building Supplies

+7.2％

[+9.2％]+6.8％


Steel Frame Building Supplies Business favorableRounded down to the nearest million yen

Segment Breakdown③Construction and Piping Products Business



+11.4%+11.4%+11.4%+11.4%

1,283

+10.1%

1,476

+8.0%

1,338

+10.4%

1,203

0

1,000

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Steel Frame

Building Supplies （In-house）

+33.8%+33.8%+33.8%+33.8%

1,476

+23.0%

1,440+2.7%

1,212-3.2%

1,021

0

1,000

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Piping Products

Demand for steel frame used for building 5.3M ton (+15.9% Y-o-Y) Steel product price （H-beam）+¥14,000（Reference⑥）

Steel Frame Building Supplies（（（（In-house））））Net sale moderate increaseGross profit margin up due to factory operating ratio

Steel Frame Building Supplies （（（（Purchasing））））Net sales growth in 4Q due to strong demand for steel frame for buildings and last-minute surge in demand in consumable supplies and tools

Piping Products BusinessNet sales Full-year +14.2% Y-o-Y due to sales increase in pipe fitting, flange, valve along with tools and machines, and last-minute surge in demand Achieved ¥5B for the first time

+29.9%+29.9%+29.9%+29.9%

4,123

+18.7%

4,452

+13.0%

4,001+12.0%

3,419

0

2,500

１Ｑ２Ｑ３Ｑ４Ｑ13/3 14/3Steel Frame

Building Supplies（Purchasing）

Last-minute surge in demand for building supplies and piping productsRounded down to the nearest million yen

Segment Breakdown③Construction and Piping Products Business


15

Impairment loss Estimated to deteriorate profitability in Chiba sales office due to shrinking sales area based on plan for establishment of new sales office（Land ¥515M, Building and others ¥20M）

Consolidated Operating Income～Net Income

Income taxes

Gain from sale of

investment securities

Impairment loss

Purchase discount

Sales discount

Item

Major item

1,445+47-535

+437-246Change

+128

+509

-

+896

+1

+894

Change

vs. FY13

1,416

2,862

-522

3,384

277

3,107

Full-year

FY2013

+21.7％Income before

income taxes

% change

+0.6％Non-operating

income/expenses

Net income

Extraordinary

income/loss

Ordinary income

Operating income

+9.9％

-

+36.0％

+40.4％


Impairment loss recordedRounded down to the nearest million yen


16

Income before income

taxes ＋2,862

Depreciation and

amortization ＋281

Impairment loss ＋535

Increase in notes and

accounts receivable －3,439

Increase in notes and

accounts payable ＋3,529

Consolidated Cash Flow


Increase in cash and cash equivalents +¥871M

8,4048,4048,4048,404

9,2759,2759,2759,275

+2,481+2,481+2,481+2,481

-360-360-360-360

-1,248-1,248-1,248-1,248

Beginning Operating CF Investing CF Financing CF Year-end

Purchase of property,

plant and equipment－1,189

Proceeds from sale of

investment securities＋84

Purchase of

treasury stock －34

Cash dividends paid－325



17

□□□□ Cash and deposits （+11.3%）, Notes and accounts receivable（+16.0%） as a result of sales growth

□□□□ Property, plant and equipment：Construction in Progress up related to G-net Tokyo branch Building

Consolidated B/S Assets


3,054 2,5402,268 2,314

9,9929,795

9,436 9,176

4,1034,023

4,014 4,126

16,891

20,003

24,028

22,093

6,905

6,861

7,016

8,439

2,884(+24.6%)9,521(+3.8%)4,297(+4.1%)25,634(+16.0%)9,393(+11.3%)53,14753,14753,14753,147(+11.8%)

47,53247,53247,53247,53247,97847,97847,97847,978

44,53644,53644,53644,536

42,18742,18742,18742,187

0

25,000

50,000

10/3 11/3 12/3 13/3 14/3

全社Cash and deposits

Notes and accounts

receivable

Other curent assets

Property, plant and

equipment

Investment

securities

Other noncurrent

assets

Increase in notes and accounts receivable and property, plant and equipment

Figures in （） indicates % Y-o-Y .＊1Notes and accounts receivable include Electronically recorded monetary claims in FY12 and FY13.



18

□□□□ Notes and accounts payable due to increase in purchasing （+24.4%）

□□□□ Other current liabilities ：Differed tax liabilities（+71.5%）

□□□□ Net assets to total assets 59.3% (-3.9 pts.)

Consolidated B/SLiabilities and Net Assets


28,429 28,31529,186

30,040

11,106

13,456

15,577 14,714

31,514(+4.9%)1,588 1,258

966

838

960(+14.6%)1,064 1,505

2,2491,940

2,374(+22.4%)18,298(+24.4%)53,14753,14753,14753,147(+ 11.8%)

47,53247,53247,53247,53247,97847,97847,97847,978

44,53644,53644,53644,536

42,18742,18742,18742,187

0

25,000

50,000

10/3 11/3 12/3 13/3 14/3

全社Notes and accountspayableCurrent liabilitiesNoncurrentliabilitiesNet assets

Increase in notes and accounts payable Rounded down to the nearest million yen


Figures in （） indicates % Y-o-Y .

19

□□□□ Increase in capital investment

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）□□□□

Capital Investment Depreciation and Amortization


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 amortizationCash and deposits

＊Cash and deposits at the year-end

Capital investment：：Up, mainly GUp, mainly G--net Tokyo Branchnet Tokyo BranchRounded down to the nearest million yen


20

□□□□ 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 (plan)□□□□ （2QE：¥5, Year-end: ¥24.5（plan））

□□□□ FY14 forecast: EPS ¥125.52, annual dividend ¥38

□□□□

Returns to Shareholders

Unit：Yen


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（Plan） 15/3（Forecast） 15.0%20.0%25.0%30.0%ＥＰＳDividendDividend payout ratioDividend policy change：：Dividend payout ratio Dividend payout ratio ２５％⇒３０％２５％⇒３０％



FY2014 Forecasts


22

Consolidated Forecast

1,820

3,180

2,880

9,221

12,101

82,300

Full-year

FY14

+80

+94

+86

+172

+258

+1,865

Change

vs. 1H FY13

+11.6%

+7.8%

+8.0%

+3.9%

+4.7%

+5.0%

% change

+403

(204)

(227)

+243

+15

(25)

Change

vs. Full-year FY13

780

1,300

1,160

4,604

5,764

39,500

1H

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)%


Sales decrease in 2H due to special factor in 2H FY13Rounded down to the nearest million yen


23

Consolidated Forecast by Segment①Equipment and Tools Business

(0.9)%(367)40,639

+3.2%+60319,629

Total sales

855

903

902

5,149

5,496

28,189

Full-year

FY14

+27

+3

+357

+16

+250

(24)

Change

vs. 1H FY13

+8.3%

+0.7%

+463.2%

+0.7%

+10.2%

(0.2)%

% change

(154)

+23

+723

(375)

+56

(795)

Change

vs. Full-year FY13

361

434

435

2,483

2,698

13,579

1H

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)%


Net sales decrease in 2H due to special factor in 2H FY13Rounded down to the nearest million yen


24

+2.1%+30715,177

+15.1%+9667,379

Total sales

432

2,513

12,664

Full-year

FY14

+97

+81

+884

Change

vs. 1H FY13

+94.4%

+7.2%

+16.7%

% change

+71

(168)

+476

Change

vs. Full-year FY13

200

1,211

6,168

1H

FY14

(6.3)%Factory Automation

% change

Operating income

Machine Tool

+19.7%

+3.9%


Sales increase in 1H based on order backlog at the beginning of FY14


Consolidated Forecast by Segment②Machine and Facility Business



+0.1%+3426,484

+2.4%+29512,492

Total sales

1,520

5,500

20,984

Full-year

FY14

(61)

+265

+29

Change

vs. 1H FY13

(9.9)%

+11.9%

+0.3%

% change

(171)

+348

(313)

Change

vs. Full-year FY13

560

2,500

9,992

1H

FY14

+6.8%Piping Products

% change

Operating income

Steel Frame Building Supplies

(10.1)%

(1.5)%

Operating income down due to deteriorated profitability of in-house productsRounded down to the nearest million yen

Consolidated Forecast by Segment③Construction and Piping Products Business



Growth Strategy


27

Growth Strategy

Industrial Equipment：：Demand expansion by providing addedDemand expansion by providing added--valuevalue


Differentiation by business development with original proposal methods and enhancing convenience for users

Expanding sales area by establishing resident office

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

Fostering main dealers and volume up by transaction increase

Tactic・measure

Differentiation by system introduction

Advancing strategic inventory

Differentiation by original proposals

Market share up

FY16Strategy


28

Housing Equipment：：Tokyo fullTokyo full--fledged operation, Differentiation with original methodfledged operation, Differentiation with original method


Differentiation by sales item expansion 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

29

Machine ToolMachine Tool・・Factory AutomationFactory Automation：：Demand expansion by market developmentDemand expansion by market development


Differentiation by reinforcement of comprehensive proposal and original approach⇒Market share up

Expanding sales area by establishing resident office

FY14 FY15

Expanding business fields covered by solution proposal method

Enclosing end-users by launching EGPARTS

Increasing sales staff

Tactic・measure

Differentiation by original proposal

Differentiation by system introduction

Reinforcing sales function

FY16Strategy


30

Steel Frame Building Supplies：：Securing stable earningsSecuring stable earnings


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 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


31

Piping Products Piping Products ・・New FieldNew Field：：Establishing profit structure for sustainable growthEstablishing profit structure for sustainable growth


Reinforcing sales structure 3.Placing sales support staff

Reinforcing sales of machine and tools for piping dealers

FY14 FY15

Fostering the 3rd pillar by setting up a project team

Increasing inventory to respond to market needs

Reinforcing sales structure 2.Increasing 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



Reference



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

全体Gifu ShojiG-netPiping Products BusinessSteel 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

New sales（Non-consolidated base，but total net sales after FY2000 on consolidated base）

Forecast

Forecast

-７

Aiming for recovery to the level before Lehman ShockRounded down to the nearest 100 million yen

Reference①

Net Sales and Operating Income Trend

＊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）



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 6,8821,802 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 5,6787,749 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 11,43213,86913,86913,86913,869

16,24716,24716,24716,247

16,78816,78816,78816,788

17,54917,54917,54917,549

16,26216,26216,26216,262

18,12518,12518,12518,125

19,39919,39919,39919,39919,83719,83719,83719,837

18,15618,15618,15618,156

19,26319,26319,26319,26318,82318,82318,82318,823 18,84118,84118,84118,841

17,80317,80317,80317,803

19,83119,83119,83119,831

20,69620,69620,69620,696

23,99323,99323,99323,993

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

合計Equipment and Tools BusinessMachine and Facility BusinessConstruction and Piping Products Business

-159 98 140 51 122 241 248 170 51 304 361 222 196 425 564 505-50 11 21 73 16 75 57 124 57 133 50 142 7 95 22 235-26 152 101 242 120 249 277 400 173 248 200 275 90 243 230 445

289289289289 288288288288

396396396396

286286286286

593593593593609609609609

724724724724

308308308308

713713713713

621621621621569569569569

294294294294

779779779779

832832832832

1,2011,2011,2011,201

-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

合計AdjustmentEquipment and Tools BusinessMachine and Facility BusinessConstruction and Piping Products BusinessOperating income

Net sales

Significant increase in 4QSignificant increase in 4Q

Reference②Net Sales・Operating Income Quarterly Trend




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




99.1

95.9

94.6

96.1

97.8

99.6

102.4

98.4

99.0

100.7100.8

103.6

108.0

94.1

107.9

93.4

80.0

90.0

100.0

110.0

FY12 1Ｑ 2Ｑ 3Ｑ 4Ｑ FY13 1Ｑ 2Ｑ 3Ｑ 4Ｑ

Industrial Production Transport Equipment

Production steady recovery

Year 2010＝100

Reference④Indices of Industrial Production



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

Orders received estimated to remain on an upward trend

Reference⑤Orders Received for Machine Tool

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

Domestic demand

Figures in （） indicates Y-0-Y %.

Rounded down to the nearest 100 million yen



736736736736 653653653653 616616616616 410410410410 420420420420 426426426426 459459459459 53253253253276,000 80,000 74,000 68,000

82,00099,000

63,00075,000

0500

10001500

2006 2007 2008 2009 2010 2011 2012 2013 40,00050,00060,00070,00080,00090,000100,000Steel frame used for building H-beam price

＊H-beam price: Tokyo high price in Dec.

Demand steady recovery／／Price upward trendPrice upward trend

Unit：yen

Reference⑥Steel Frame Demand and Product Price Trend

Unit：10Kt


39

Non-consolidated ResultsFurusato Industries

+21.7％+1,3097,346

Liabilities

+6.1％+1,67029,010

Total assets

+1.7％+36121,663

Net assets

+32.3％+136559

Net income

（-3.2Ｐ）

+769

+750

+171

+922

+3,610

Change

vs. FY12

74.7％

1,832

1,691

4,315

6,007

26,477

Full-year

FY13


% change

+18.1％Gross profit margin

Net assets to Total assets

Operating income

SG&A Expenses

Net sales

+79.9％

+4.1％

+15.8％




40

+26.5％+2,65612,686

Liabilities

+17.2％+3,41823,300

Total assets

+7.7％+76110,613

Net assets

(1.3)％(9)688

Net income

（-4.1Ｐ）

+48

+60

+145

+206

+3,084

Change

vs. FY12

45.5％

1,268

1,124

4,183

5,307

51,786

Full-year

FY13


% change



Operating income

SG&A Expenses

Net sales

+5.7％

+3.6％

+6.3％



Non-consolidated ResultsG-net


41

+10.3％+1711,827

Liabilities

+14.2％+5324,261

Total assets

+17.4％+3612,433

Net assets

+13.2％+20179

Net income

（+1.6％）

+35

+27

+18

+46

+696

Change

vs. FY12

57.1％

300

246

526

772

5,441

Full-year

FY13


% change



Operating income

SG&A Expenses

Net sales

+12.7％

+3.7％

+14.7％



Non-consolidated ResultsGifu Shoji


42

Corporate Planning Division

ＴＥＬ：０６－６９４６－９６０８

ＦＡＸ：０６－６９４６－９７８０

E-mail ：[email protected]


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.


FY2013 Earnings Presentation - Furusato · Construction and Piping Products Construction and Piping...

Documents

Transcript of FY2013 Earnings Presentation - Furusato · Construction and Piping Products Construction and Piping...