Financial Results Briefing for the Year Ended March 31, 2018
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Financial Results Briefing For the Year Ended March 31, 2018 Chairman & CEO Hiroyuki Suzuki I. Consolidated Financial Highlights for the Year Ended March 31, 2018 ・・・P. 2 II. Nonconsolidated Financial Highlights for the Year Ended March 31, 2018 ・・・P. 1 2 III. Performance Forecasts for the Year Ending March 31, 2019 ・・・P. 2 0 IV. Outlook for the First Year of the ‘Fifth Medium-Term Management Plan’ ・・・P. 2 6 (Reference) Overview and Trends in Business Performance of Overseas Group Companies ・・・P. 4 4 (Reference) Features of the Maruichi Group ・・・P. 5 3 May 11, 2018 Devoted to Steel Tubes 1 I. Consolidated Financial Highlights for the Year Ended March 31, 2018 Devoted to Steel Tubes 2 Consolidated Operating Results (Millions of yen) Net sales (Millions of yen) FY2017 FY2018 Increase/ Forecasts announced Increase/ Results Results decrease in February decrease Net sales 137,277 156,266 +13.8% 153,400 +1.9% 156,266 Operating Income 24,502 20,826 -15.0% 19,600 +6.3% Ordinary Income + 152,668 26,192 22,986 -12.2% 21,200 8.4% Net income attributable to owners of parent 17,715 15,777 -10.9% 14,300 +10.3% Profits (Millions of yen) Operating income 144,968 Ordinary income 26,192 Net income attributable to owners of parent 24,502 22,586 22,986 20,826 20,080 19,919 18,944 137,277 17,734 17,715 136,547 17,027 15,777 13,748 11,184 9,299 FY2014 FY2015 FY2016 FY2017 FY2018 FY2014 FY2015 FY2016 FY2017 FY2018 Devoted to Steel Tubes 3 Consolidated Operating Results Statements of Income (Millions of yen) FY2014 FY2015 FY2016 FY2017 FY2018 Percentage of Percentage of Percentage of Percentage of Percentage of Amount total (%) Amount total (%) Amount total (%) Amount total (%) Amount total (%) Net sales 136,548 100.0 152,668 100.0 144,969 100.0 137,277 100.0 156,266 100.0 Cost of sales 104,571 76.6 122,198 80.0 114,974 79.3 100,153 73.0 122,304 78.3 Gross profit 31,977 23.4 30,470 20.0 29,995 20.7 37,125 27.0 33,962 21.7 Selling, general and 11,896 8.7 12,736 8.3 12,967 8.9 12,622 9.2 13,135 8.4 administrative expenses Operating income 20,080 14.7 17,734 11.6 17,028 11.7 24,502 17.8 20,826 13.3 Non-operating income 3,109 2.3 2,882 1.9 2,933 2.0 2,671 1.9 2,933 1.9 Non-operating expenses 602 0.4 697 0.5 1,015 0.7 981 0.7 774 0.5 Ordinary income 22,587 16.5 19,919 13.0 18,945 13.1 26,192 19.1 22,986 14.7 Extraordinary income 3,529 2.6 856 0.6 1,952 1.3 330 0.2 299 0.2 Extraordinary losses 3,842 2.8 5,444 3.6 2,844 2.0 398 0.3 33 0.0 Income before income taxes 22,274 16.3 15,331 10.0 18,053 12.5 26,123 19.0 23,251 14.9 Income taxes 8,035 5.9 7,324 4.8 7,457 5.1 7,302 5.3 6,966 4.4 Net income attributable to non- 491 0.4 (1,293) (0.8) (589) (0.4) 1,106 0.8 507 0.3 controlling interests Net income attributable to 13,748 10.1 9,300 6.1 11,185 7.7 17,715 12.9 15,777 10.1 owners of parent Devoted to Steel Tubes 4 The Year Ended March 31, 2018 Consolidated P/L results: Factors for changes from FY2017 (Billions of yen) FY2018 Net sales Factors attributable to the Company ¥+8.08 billion Previous Current Increase/ Percentage Year Year decrease Increase/decrease MAC ¥+1.18 billion MKK USA INC. ¥+2.59 billion Net sales 137.28 156.27 +18.99 +13.8% MOST ¥+1.09 billion Operating income 24.50 20.83 -3.68 (15.0)% MMX ¥+0.22 billion (Interest income, dividends) 0.85 1.34 +0.49 SUNSCO (including Hanoi) ¥+3.14 billion (Equity in earnings of affiliated 0.72 0.62 -0.10 KUMA ¥+1.88 billion companies, etc.) Other domestic subsidiaries ¥+0.74 billion (Other non-operating income) 1.10 0.97 -0.13 Increase/decrease in consolidated elimination and reclassification ¥+0.07 billion (Interest expense) 0.25 0.23 +0.01 Operating income (Exchange loss, net) 0.16 0.09 +0.07 Factors attributable to the Company ¥-2.03 billion (Expenses of real estate rent) 0.36 0.34 +0.02 MAC ¥-0.35 billion (Other non-operating expenses) 0.22 0.11 +0.10 MKK USA INC. ¥+0.18 billion MOST ¥-0.01 billion Ordinary income 26.19 22.99 -3.21 (12.2)% MMX ¥-0.00 billion (Gains from sale of fixed assets) 0.14 0.22 +0.09 SUNSCO (including Hanoi) ¥-1.81 billion (Gains on sales of investment KUMA ¥+0.28 billion 0.00 0.08 +0.08 securities) Alpha Metal ¥+0.00 billion (Other extraordinary income) 0.19 0.00 -0.19 Increase in profits in other domestic subsidiaries ¥+0.14 billion Increase/decrease in consolidated elimination and reclassification ¥-0.07 billion (Loss on sales of investment 0.12 0.01 +0.12 securities) Ordinary income (Loss on disposal of property, Factors attributable to the Company ¥-0.86 billion plant 0.06 0.03 +0.03 and equipment, etc.) MAC ¥-0.26 billion MKK USA INC. ¥+0.20 billion (Other extraordinary losses) 0.22 0.00 +0.21 MOST ¥+0.03 billion Income before income taxes 26.12 23.25 -2.87 (11.0)% MMX ¥-0.02 billion (Income taxes) 7.30 6.97 + 0.34 SUNSCO (including Hanoi) ¥-1.71 billion (Net income) 18.82 16.29 -2.54 KUMA ¥+0.22 billion Alpha Metal ¥+0.01 billion (Net income attributable to non- 1.11 0.51 +0.60 Increase in profits in other domestic subsidiaries ¥+0.20 billion controlling interests) Affiliated companies accounted for by the equity method ¥-0.08 billion Net income attributable to 17.72 15.78 -1.94 (10.9)% Increase/decrease in consolidated elimination and reclassification ¥-0.94 billion owners of parent Devoted to Steel Tubes 5 Consolidated Business Results by Segment (Millions of yen) FY2017 FY2018 Operating Operating Net sales Share Share Net sales Share Share income income Japan 89,379 65.1% 19,485 79.5% 99,102 63.4% 17,601 84.5% North America 22,401 16.3% 1,945 7.9% 26,736 17.1% 1,902 9.1% Asia 26,157 19.1% 2,899 11.8% 30,687 19.6% 1,082 5.2% Reconciliations (660) (0.5)% 174 0.7% (259) (0.2)% 242 1.2% Total 137,277 100.0% 24,502 100.0% 156,267 100.0% 20,827 100.0% Devoted to Steel Tubes 6 Statements of Income Consolidated Operating Results Major factors for changes from forecasts announced in Februrary (Billions of yen) Net sales Forecast Result Amount of impact FY2018 Factors attributable to Maruichi ¥93.61 billion ¥95.60 billion ¥1.99 billion MAC ¥7.48 billion ¥7.70 billion ¥0.22 billion Forecasts FY2018 announced in Change MKK USA INC. ¥11.64 billion ¥11.83 billion ¥0.19 billion results Februrary MOST ¥5.29 billion ¥5.40 billion ¥0.10 billion MMX ¥2.15 billion ¥2.17 billion ¥0.03 billion SUNSCO (including Hanoi) ¥24.95 billion ¥25.16 billion ¥0.21 billion KUMA ¥5.59 billion ¥6.40 billion ¥0.81 billion Alpha Metal ¥4.77 billion ¥5.18 billion ¥0.40 billion Consolidated adjustments (mainly for machinery sales and ¥(2.07) billion ¥(3.17) billion ¥(1.10) billion Net sales 153.40 156.27 2.87 related steel strip) Operating income Forecast Result Amount of impact Factors attributable to Maruichi ¥14.71 billion ¥15.52 billion ¥0.82 billion MAC ¥0.36 billion ¥0.37 billion ¥0.01 billion MKK USA INC. ¥0.66 billion ¥0.79 billion ¥0.13 billion MOST ¥0.37 billion ¥0.40 billion ¥0.04 billion MMX ¥0.47 billion ¥0.47 billion ¥(0.00) billion SUNSCO (including Hanoi) ¥0.46 billion ¥0.39 billion ¥(0.07) billion KUMA ¥0.65 billion ¥0.70 billion ¥0.05 billion Alpha Metal ¥0.15 billion ¥0.09 billion ¥(0.06) billion Operating income 19.60 20.83 1.23 Other domestic subsidiaries ¥1.40 billion ¥1.80 billion ¥0.41 billion Goodwill ¥0.00 billion ¥0.00 billion ¥0.00 billion Consolidated adjustments ¥0.37 billion ¥0.29 billion ¥(0.09) billion Ordinary income Forecast Result Amount of impact Factors attributable to Maruichi ¥18.17 billion ¥19.20 billion ¥1.03 billion MAC ¥0.41 billion ¥0.43 billion ¥0.01 billion MKK USA INC. ¥0.61 billion ¥0.73 billion ¥0.12 billion MOST ¥0.37 billion ¥0.44 billion ¥0.07 billion MMX ¥0.44 billion ¥0.47 billion ¥0.03 billion SUNSCO (including Hanoi) ¥0.68 billion ¥0.65 billion ¥(0.03) billion Ordinary income 21.20 22.99 1.79 KUMA ¥0.63 billion ¥0.70 billion ¥0.07 billion Alpha Metal ¥0.16 billion ¥0.10 billion ¥(0.06) billion Other domestic subsidiaries ¥1.74 billion ¥2.15 billion ¥0.41 billion Affiliated companies accounted for by the equity method ¥0.47 billion ¥0.64 billion ¥0.17 billion Consolidated adjustments ¥(2.49) billion ¥(2.52) billion ¥(0.03) billion Net income attributable to owners of parent Forecast Result Amount of impact Factors attributable to Maruichi ¥12.96 billion ¥13.83 billion ¥0.87 billion MAC ¥0.25 billion ¥0.32 billion ¥0.08 billion MKK USA INC.