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Financial results for FY2019 Q2
Financial SummaryAug. 21, 2019
NIKKISO CO., LTD.Securities code: 6376
Disclaimer
This material contains forward-looking statements about future business performance. These statements by definition involve risks and uncertainties and are not intended to guarantee future performance. Actual results in the future may differ from the
estimates presented in the material herein due to changes in the business environment and other factors.
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
2
Ⅰ. Consolidated Performance
Appendix
Company Information
Ⅱ. Performance by Business Segment
Ⅲ. Financial forecast
2
Financial results for FY2019 Q2
Table of Contents
Ⅳ. Reorganization of Domestic Manufacturing Bases
Ⅴ. Current status and future prospects of CI group
Ⅰ. Consolidated Performance
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 4
FY2018 Q2 Jan.2018 – Jun.2018
FY2019 Q2Jan.2019 – Jun.2019
YoY comparison
Change Change rate
Orders 84,730 85,908 +1,178 +1.4%
Revenue 75,578 78,956 +3,378 +4.5%
Operating profit 3,168 3,558 +390 +12.3%
Operating margin 4.2% 4.5%
Profit before tax 2,762 2,999 +236 +8.6%
Pretax profit margin 3.7% 3.8%
Profit for the yearattributable to owners of the company
2,033 1,905 △128 △6.3%
Profit marginattributable to owners of the company
2.7% 2.4%
Average foreign exchange rate
Against the US dollar (Yen) 108.67 110.06 +1.39 -
Against the euro (Yen) 131.55 124.32 △7.23 -
Financial results for FY2019 Q2
Consolidated Performance
Millions of JPY
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 5
FY2018 Q2
Jan.2018 – Jun. 2018
FY2019 Q2
Jan. 2019 – Jun. 2019Change Remarks
Gross profit 25,772 25,663 △109
- Selling, general and administrative expenses △22,967 △22,366 +601
Decrease in SG&A expenses at overseas subsidiaries
- Other income 430 307 △122
- Other expenses △67 △45 +21
Operating profit 3,168 3,558 +390
- Financial income 342 385 +42
- Financial costs △864 △1,058 △193Increase in foreign exchange loss due to the appreciation of the yen
- Share of profit of associates and joint ventures accounted for using the equity method
116 112 △3
Profit before tax 2,762 2,999 +236
Exchange rate for the conversion of the performance of overseas subsidiaries
- Against the US dollar (Yen) 108.67 110.06 +1.39
- Against the euro (Yen) 131.55 124.32 △7.23
Financial results for FY2019 Q2
Breakdown of Profit/Loss
Millions of JPY
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 6
FY2018 FY2019(forecast)
Financial results for FY2019 Q2
Quarterly results trend
Millions of JPY
Average foreign exchange rate
1$ = 112.16Yen1€ = 126.70Yen
Average foreign exchange rate
1$ = 110.44Yen1€ = 130.35Yen
Foreign exchange rate (revised forecast)
1$ = 109.00Yen1€ = 122.00Yen
FY2017
29,522
62,910
97,199
140,912
34,492
75,578
115,437
165,326
37,480
78,956
171,500
1,238
2,441
4,972
8,718
864
3,168
6,308
10,302
2,154
3,558
12,000
Revenue Operating profit
Q1 Q2 Q3 Q4 Q1 Q2 Q4 (revised forecast)Q1 Q2 Q3 Q4
Ⅱ. Performance by Business Segment
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 8
Financial results for FY2019 Q2
Performance by Business Segment
FY2018 Q2Jan.2018 - Jun.2018
FY2019 Q2Jan.2019 - Jun.2019
YoY comparison
Change Change rate
IndustrialBusiness
Orders 54,598 55,780 +1,182 +2.2%
Revenue 46,786 49,919 +3,132 +6.7%
Operating profit 2,666 3,4536.9%
+787 +29.5%
Operating margin 5.7%
Industrial DivisionOrders 39,826 41,403 +1,576 +4.0%
Revenue 33,567 35,674 +2,107 +6.3%
Precision Equipment Division
Orders 6,705 5,623 △1,082 △16.1%
Revenue 5,156 5,466 +309 +6.0%
Aerospace DivisionOrders 8,016 8,588 +572 +7.1%
Revenue 8,005 8,600 +595 +7.4%
MedicalBusiness
Orders 30,132 30,128 △3 △0.0%
Revenue 28,791 29,037 +246 +0.9%
Operating profit 2,164 1,9126.6%
△251 △11.6%
Operating margin 7.5%
Corporate expenses, etc. Operating profit △1,663 △1,808 △144 -
Millions of JPY
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
38%
6%15%
10%
27%
5%
9
FY2019Q2
FY2018 Q2Jan.2018 – Jun. 2018
FY2019 Q2Jan. 2019 – Jun. 2019
YoY comparison
Change Change rate
Orders 39,826 41,403 +1,576 +4.0%
Revenue 33,567 35,674 +2,107 +6.3%
Geveke
Financial results for FY2019 Q2
Industrial Division
1. Overview
2. Consolidated performance 3. Revenue Composition ratio by Product
Millions of JPY
Reciprocating pump
Canned motor pump
Cryogenics pump
CI Group
Others
✓ At the current oil price level, investments have resumed in the oil and gas mining markets (upstream
sector) and the petrochemical market (downstream sector). LEWA grew its after-sales service
business, achieving higher revenues and profits.
✓ Orders for large cryogenic pumps increased along with global market growth (e.g., an increase in
LNG-receiving terminals). Aim to strengthen manufacturing, technological development and sales by
integrating business operations of U.S. subsidiaries (NCI*1 and CI Group*2).
✓ Decided to restructure domestic manufacturing bases. Aim to increase sales in the canned motor
pump and cryogenic pump businesses and improve profitability mainly through the enhancement of
manufacturing capabilities by integrating domestic manufacturing functions into the Miyazaki Factory.
※1:Nikkiso Cryo, Inc. ※2:Cryogenic Industries Group
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 10
Financial results for FY2019 Q2
Quarterly performance trend of LEWA
Millions of €
FY2019
Q1 Q4Q3Q2Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2017 FY2018 2019計画
51
105
151
200
58
132
197
247
71
136
250
46
107
170
236
46
94
153
237
53
108
243
3 918
28
1 411
22
5 12
27
125 119
101
84
106
133 138
95
115 123
-200
-150
-100
-50
0
50
100
150
0
50
100
150
200
250
300
350
受注高(左軸) 売上収益(左軸) EBITDA(左軸) 受注残高(右軸)Reveue (Left axis)Order (Left axis) EBITDA (Left axis) Order backlog(Right axis)
(forecast)
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
194
54
87
137
212
51
96
198
31
65
92
124
28
67
113
162
43
87
188
4 9 11 141 5 11
175 9
22
116 114 108
111
138 146
147
-150
-100
-50
0
50
100
150
0
50
100
150
200
250
受注高(左軸) 売上収益(左軸) EBITDA(左軸) 受注残高(右軸)
11
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
53%
33%
14%
44%
34%
21%Revenue Composition
ratio by segment
ACD
Cryoquip
Cosmodyne
47%
33%
20%
48%38%
14%
FY2019
Q2FY2018FY2017
FY2019
forecast
FY2017※unaudited FY2018 2019(forecast)
Financial results for FY2019 Q2
Quarterly performance trend of CI group
Order (Left axis) Reveue (Left axis) EBITDA (Left axis)Millions of $
Q1 Q4Q3Q2
FY2019
Order backlog(Right axis)
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
15%
41%
33%
10%
12
FY2019Q2
FY2018 Q2Jan.2018 – Jun. 2018
FY2019 Q2Jan. 2019 – Jun. 2019
YoY comparison
Change Change rate
Orders 6,705 5,623 △1,082 △16.1%
Revenue 5,156 5,466 +309 +6.0%
Financial results for FY2019 Q2
Precision Equipment Division
1. Overview
2. Consolidated performance 3. Revenue Composition ratio by Product
Millions of JPY
Water conditioning system
Particle analyzers
Fine ceramics
Others
✓ The electric power business targeting power plants remained weak due to soft domestic market
conditions.
✓ The business targeting manufacturers of electronic components increased its revenue and
profit thanks to the steady handling of existing manufacturing orders despite a decrease in
orders affected by Apple’s shock announcement and slowing capital investment caused by the
U.S.–China trade frictions.
✓ The particle analytical equipment business had been handled by consolidated subsidiaries,
MicrotracBEL Corp. and Microtrac, Inc. However, the Company transferred all the shares of
these two companies on July 8, 2019.
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
43%
14%
25%
14%
4%
13
FY2018 Q2Jan.2018 – Jun. 2018
FY2019 Q2Jan. 2019 – Jun. 2019
YoY comparison
Change Change rate
Orders 8,016 8,588 +572 +7.1%
Revenue 8,005 8,600 +595 +7.4%
FY2019Q2
Financial results for FY2019 Q2
Aerospace Division
2. Consolidated performance 3. Revenue Composition ratio by Product
Millions of JPY
Cascade
Nacelle parts
Wing parts
Jet engine parts
Others
1. Overview
✓ The number of inquiries that the Company received increased steadily as commercial aircraft
demand mainly for small planes (single-aisle planes) continuously increased primarily in Southeast
Asia.
✓ Revenues are increasing as a whole as engine parts shipments have increased.
✓ Profit decreased due to increased expenses including depreciation expenses for the Miyazaki
Factory whose construction was completed last year. Aim to improve profitability by strengthening
business foundation (e.g., stable operations at the Miyazaki Factory and cost optimization through
integration of bases).
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
15%
12%
31%3%
12%
9%
18%
14
FY2018 Q2Jan.2018 – Jun. 2018
FY2019 Q2Jan. 2019 – Jun. 2019
YoY comparison
Change Change rate
Orders 30,132 30,128 △3 △0.0%
Revenue 28,791 29,037 +246 +0.9%
FY2019Q2
Financial results for FY2019 Q2
Medical Division
2. Consolidated performance 3. Revenue Composition ratio by Product
Millions of JPY(Japan) Dialysis machines
(Overseas) Dialysis machines
(Japan) Disposable
(Overseas) Disposable
Maintenance
CRRT
Others
1. Overview
✓ The domestic hemodialysis business remained weak, in a continuously challenging market
environment, mainly due to declined unit prices caused by fiercer competition and postponement of
purchases in anticipation of the launch of new dialysis machines.
✓ Sales of blood tubing lines and other disposables increased as a whole in the domestic market.
Regarding the overseas market, machine sales increased in Europe. Overall sales of the
hemodialysis business remained on a par with the same period last year, but profit decreased due
to increased expenses in Japan.
✓ Regarding the CRRT business whose business restructuring is currently underway, sales of
machines and disposables remained strong in China (main market) and its revenue increased year-
on-year. However, it was not enough to compensate for poor sales in other markets. As a result, the
level of loss remained almost unchanged from the previous period.
Ⅲ. Financial forecast
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 16
FY2018Actual record
FY2019Initial
Forecast
FY2019RevisedForecast
Y on Y
comparison
Comparison with
initial forecast
Change Change rate Change
Orders 172,492 174,000 171,500 △992 △0.6% △2,500
Revenue 165,326 172,000 170,000 +4,673 +2.8% △2,000
Operating profit 10,302 11,000 12,000 +1,697 +16.5% +1,000
Operating margin 6.2% 6.4% 7.1%
Profit before tax 9,741 10,600 11,200 +1,458 +15.0% +600
Pretax profit margin 5.9% 6.2% 6.6%
attributable to owners of the company
Profit for the year 7,448 7,800 8,200 +751 +10.1% +400
Profit margin attributable to owners of the company
4.5% 4.5% 4.8%
Average/ForecastAgainst the US dollar (Yen)
Against the euro (Yen)110.44130.35
109.00125.00
109.00122.00
△1.44△5.35
0.00△3.00
Forex sensitivity for FY2019 (When
yen was depreciated by 1 yen)
US dollar (Yen)
Euro (Yen)
Revenue +430 million yen Operating profit +80 million yen
Revenue +370 million yen Operating profit +60 million yen
Financial forecast for FY2019
Consolidated Performance
Millions of JPY
Revised the full-year performance forecast due to the posting of gains on sales of shares of the particle
analytical equipment business, expenditures incurred due to the restructuring of domestic bases, and
changes in exchange rates assumed to prepare performance forecasts.
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 17
FY2018Actual record
FY2019Initial
Forecast
FY2019RevisedForecast
Y on Y comparison
Comparison with initial forecast
Industrial Business
Orders 111,459 109,800 107,200 △4,259 △2,600
Revenue 104,501 107,800 105,700 +1,198 △2,100
Operating profit 8,140 8,600 8,0007.6%
△140 △600
Operating margin 7.8% 8.0%
Industrial DivisionOrders 82,238 79,900 79,900 △2,338 0
Revenue 76,763 77,900 77,900 +1,136 0
Precision Equipment
Division
Orders 12,204 12,600 9,200 △3,004 △3,400
Revenue 10,682 12,600 9,700 △982 △2,900
Aerospace DivisionOrders 16,884 17,300 17,600 +715 +300
Revenue 16,909 17,300 17,600 +690 +300
Medical Business
Orders 61,032 64,200 64,300 +3,267 +100
Revenue 60,824 64,200 64,300 +3,475 +100
Operating profit 5,582 6,400 6,0009.3%
+417 △400
Operating margin 9.2% 10.0%
Corporate expenses, etc. Operating profit △3,419 △4,000 △2,000 +1,419 +2,000
Financial forecast for FY2019
Performance by Business Segment
Millions of JPY
Ⅳ. Reorganization of Domestic Manufacturing Bases
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 19
Higashimurayama
Miyazaki
Shizuoka
Kanazawa(no change)
Production Base
Hakusan(no change)
• UV-LED
Aim to expand manufacturing capabilities and improve profitability at the same time
by integrating and optimizing manufacturing systems and functions.
Manufacturing Bases by Business Segment
◼ Industrial :Miyazaki
◼ Precision Equipment :Higashimurayama
◼ Aerospace :Kanazawa , Miyazaki
◼ Medical :Kanazawa
◼ UV-LED :Hakusan
2019 Start of construction of cryogenic pump testing facility and industrial factory in Miyazaki.
2020 Complete the construction of cryogenic pump testing facility and industrial factory in Miyazaki.
2021 Complete the transfer of pump manufacturingfrom Higashimurayama to Miyazaki.
End of2022 Complete the transfer of pump manufacturing
Schedule
Objectives
Financial results for FY2019 Q2
R e o r g a n i z a t i o n o f D o m e s t i c M a n u f a c t u r i n g B a s e s
• Medical• Aerospace
Production Base• Industrial• Aerospace
Production Base Research and technology development bases, etc.
• Aerospace• Industrial
Production Base
• Aerospace
Production Base
• Aerospace
Production Base
Logistics base , etc.
Research and technology development bases
<Before> <After>
<Before>
<After>
<After>
<Before>
Ⅴ. Current status and future prospects of CI group
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 21
Director & CEO : Peter WagnerDirector & Executive Vice President : Hisanao AminoVice President & CFO : Russell Higgins
Management
Head Office
Year of the establishment
Revenue
Number of employees
Number of subsidiaries
Operations
California
1958
162.3Million USD(FY2018)
654
22
Manufacture and sale of cryogenic liquefied gas equipment, small-scale LNG liquefaction
plants, and industrial gas purification and liquefaction plants
ACD: Manufacture and sale of centrifugal and reciprocating pumps and turbo expanders
CRYOQUIP: Manufacture and sale of vaporizers (ambient type and those using various
heat media)
COSMODYNE:Manufacture and sale of air separation, gas purification and liquefaction
plants
Financial results for FY2019 Q2
Basic information of Cryogenic Industries group
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 22
Financial results for FY2019 Q2
Object ives of acquir ing the CI Group
Liquefactionplant
Offshoregas field F L N G※
LNGconveyance
N
N
L G
N
L
N
LNG receiving base
Power plant
G
・Products of Nikkiso GroupNIKKISO LEWA GEVEKE
・Products of CI Group
・ LNG Gas
※1 FSRU:Floating storage and regasification unit※2 FLNG:Floating LNG
N GL
Small-scale LNG supply chain
N G
C C
C
C
Production
L G
Gas field
Vaporizers
Pumps
Plant
F S R U※
Consumption
C
C
C
C
Supply ship
LNG fuel ship
Gas station
Gas fuelvehicle/LNGtrain
Bunkering
Tanker
Realize a group-wide “Total Value Chain” thoroughly encompassing upstream through downstream sectors
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
Air Separation device
Small-scale plant engineering
Ambient Air Vaporizers / Process Vaporizers
Turbo Expander Systems
Centrifugal pumps / Reciprocating pumps
23
C r y o g e n i c I n d u s t r i e s G r o u p
Cryogenic Industries, Inc. 【Corporate division】
【Heat transfer equipment】 【Plant Engineering】【Pumps and manufacture
of related equipment】
CosmodyneCryoquipACD
Management and supervision of subsidiaries
Financial results for FY2019 Q2
Business outline of CI group
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 24
Financial results for FY2019 Q2
I n t e g r a t e w i t h N C I ※ a n d r e o r g a n i z e o u r b u s i n e s s b y
m a r k e t s e g m e n t
Reorganization through the integration of business operations of NCI and CI to deal with market diversification and customer needs
※NCI:Nikkiso Cryo, Inc.
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 25
Financial results for FY2019 Q2
Group synergyEstablish the Group’s global service network covering the U.S., Canada, Europe, Asia, the Middle East and other areas
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 26
Financial results for FY2019 Q2
Results of sales activit ies
LNG import terminals
➢ Succeeded in collectively receiving orders for NCI’s cryopumps, Cryoquip’s vaporizers and ACD’s pumps in India in 2018 (about 1 billion yen).
LNG peak shaving plants
➢ Received the biggest order ever for CI in terms of monetary amount in the U.S. in 2018 (about 3.1 billion yen).
➢ Pending orders and inquiries are increasing.
LNG virtual pipelines
➢ Succeeded in receiving an order for a small receiving terminal in Puerto Rico in 2019 (about 0.8 billion yen).
Cryogenic air separation units (ASUs)
➢ Received multiple orders for industrial gas purification plants in 2019. (e.g., Panama, Malta, and Algeria)
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 27
Financial results for FY2019 Q2
Future plan
Create group-wide synergy with Nikkiso, LEWA and Geveke
➢ Improve execution ability and increase sales and profits by mutually using the Group’s sales, production and service networks
➢ Enhance profitability by reviewing the Group’s procurement, logistics and supply chain
➢ Reduce cost through the mutual use of operation bases
Expansion of solution business
➢ Build auxiliary facilities for small LNG receiving terminals ➢ Bunkering-related facilities, equipment and systems➢ Equipment and systems for hydrogen filling stations and relevant facilities➢ Equipment and systems for LNG/LCNG stations➢ Fuel supply systems for LNG carriers
Appendix
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
< Medical >< Aerospace >< Industrial and Precision
Equipment >
29
Impact of FX
Orders Analysis (vs FY2018 Q2)
Millions of JPY
FY2019 Q2
(Jan.2019-Jun.2019)
Orders
85,908FY2018 Q2
(Jan.2018-Jun.2018)
Orders
84,730
+1,812
Simple
increase
△1,202
+125
Impact of FX
Simple
increase
Simple
increase Impact of FX
+442 △446
✓ Orders for large cryogenic
pumps increased mainly
thanks to an increase in
LNG-receiving terminals.
✓ Orders for CI Group’s
LNG-related product were
increased.
✓ Orders for fan case liners
increased
✓ Strong sales of hemodialysis
machines in Europe.
✓ Sales of disposables (e.g.
blood tubing lines and powder
dialysate) were strong.
+446
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
< Medical>< Aerospace >< Industrial and Precision
Equipment >
30
+468 +126
△478+724
Revenue Analysis (vs FY2018 Q2)
Millions of JPY
FY2018 Q2(Jan.2018-Jun.2018)
Revenue
75,578
FY2019 Q2
(Jan.2019-Jun.2019)
Revenue
78,956
Simple
increaseImpact of FX
Simple
increaseImpact of FX
Impact of FX
+3,590
Simple
increase
△1,052
✓ Sales of LEWA’s oil- and
gas-related products
increased. The after-sales
service business also grew.
✓ Sales of large cryogenic
pumps increased.
✓ The CI Group’s LNG-related product sales were strong.
✓ Sales for fan case liners
increased .
✓ Sales of disposables (e.g.
blood tubing lines and powder
dialysate) were strong.
✓ Strong sales of hemodialysis
machines in Europe.
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
< Medical>< Aerospace >< Industrial and Precision
Equipment >
31
decrease in
corporate
expenses, etc.+73 △52 △198
+1,221 △419
△148
FY2019 Q2
(Jan.2019-Mar.2019)
Operating profit
3,558
△88
Operating profit Analysis (vs FY2018 Q2)
Millions of JPY
FY2018 Q2
(Jan.2018-Jun.2018)
Operating profit
3,168
Simple
increase Impact of FX Simple
decrease
Impact of FX
Simple
decrease Impact of FX
✓ Logistics and other
expenses increased.
✓ The CRRT business remained in a slump.
✓ The Miyazaki Factory’s
depreciation and other
expenses increased.
✓ The CI Group achieved
strong sales and
decreased its depreciation
expenses.
✓ LEWA’s sales increased.
✓ Subsidy
income, etc.
decreased.
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 32
As of end of December 2018 As of end of June 2019
AmountComposition
ratio AmountComposition
ratio Change
Total assets 249,788 100.0% 264,157 100.0% +14,368
Total current assets 121,342 48.6% 125,264 47.4% +3,922
Cash and cash equivalents 29,269 11.7% 34,389 13.0% +5,119
Trade and other receivables 54,077 21.6% 48,250 18.3% △5,826
Inventories 33,297 13.3% 34,156 12.9% +859
Total non-current assets 128,446 51.4% 138,892 52.6% +10,446
Property, plant and equipment 44,920 18.0% 43,955 16.6% △964
Goodwill and Intangible assets 64,255 25.7% 62,611 23.7% △1,644
Total liabilities 171,450 68.6% 187,895 71.1% +16,445
Trade and other payables 27,380 11.0% 24,601 9.3% △2,778
Bonds and borrowings 117,052 46.9% 122,804 46.5% +5,751
Total equity 78,338 31.4% 76,261 28.9% △2,077
Consolidated Statement of Financial Position
Millions of JPY
※Assets and Liabilities as of June 30, 2019, were increased compared to the end of the previous fiscal year, due mainly to an increase in right-of-use assets
and lease liabilities resulting from the application of IFRS 16.
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 33
Consolidated Statement of Cash Flows
Millions of JPY
FY2018Q2(Jan.2018-Jun.2018)
FY2019Q2(Jan.2019-Jun.2019)
Change
Cash flows from operating activities 7,124 4,985 2,138
Profit before tax 2,762 2,999 +236
Depreciation and amortization 3,092 4,421 +1,329
Increase(decrease) of working capital(trade receivables/payables and inventories)
△2,740 △322 +2,418
Cash flows from investment activities 4,764 △3,677 +1,086
Purchase of property, plant and equipment 4,233 △3,503 +730
Payments for acquisition of subsidiaries 532 △610 △77
Free cash flows 2,360 1,308 △1,051
Cash flows from financing activities 283 4,782 +4,498
increase(decrease) in borrowings 1,095 7,084 +5,988
Dividends paid 569 △711 △142
Cash and cash equivalents at the end of year 35,794 34,389 △1,404
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
Japan
37%
Asia24%
North America
18%
Europe19%
Others3%
34
MedicalAerospacePrecision Equipment
63%
26%
6%4%2% 日本
アジア
北米
欧州
その他
18%
7%
71%
5%
69%
14%
1% 13%2%
20%
30%
40%
50%
60%
70%
0
20,000
40,000
60,000
80,000
100,000
120,000
08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 15/12 16/12 17/12 18/12
アジア 北米
欧州 その他
海外売上収益比率(右軸)
FY2019 Q2
Nikkiso group total Revenue trend by overseas region
FY2019 Q2
FY2019 Q2
Overseas revenue ratio
63%
(9 months)
Industrial
11%
36%
20%
29%
4%
FY2019 Q2
FY2019 Q2
Revenue Composition Ratio by Region
Millions of JPYAsia North America
Europe Other
Overseas revenue ratio (right axis)
Japan
Asia
North America
Europe
Other
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 35
FY2019
Performance forecast
Against the US dollar Against the euro
RevenueOperating
profitRevenue
Operating
profit
Industrial Division/
Precision Equipment
Division+290 +20 +300 +30
Aerospace Division +140 +80 +0 +0
Medical Division +10 △30 +70 +30
Total +430 +80 +370 +60
Average/Forecast (Yen)
(revised on Aug 9)109.00 122.00
Breakdown of forex sensitivity
※When yen was depreciated by 1 yen
Millions of JPY
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 36
FY2016 FY2017 FY2018
Earnings per share (Basic) 66.08yen 72.82yen 104.63yen
Return on equity (ROE) 7.2% 7.3% 9.8%
Return on asset (ROA) 3.8% 3.9% 3.9%
Operating margin 6.2% 6.2% 6.2%
Equity ratio 37.4% 30.7% 30.7%
Debt/equity ratio 1.05times 1.63times 1.53times
FY2016 FY2017 FY2018
Capital expenditure 7,635 7,508 12,869
Research and development expenditure 1,679 2,435 2,387
Depreciation and amortization 4,766 5,246 6,335
Financial data
Millions of JPY
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
37
Quarterly orders/order backlog trend of Industrial Division
Orders
Order backlog
Millions of JPY
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
FY201711,261 14,331 14,132 19,103
overseas 9,487 12,241 12,425 17,113
FY201820,066 19,760 18,808 23,604
overseas 18,316 17,659 16,974 20,488
FY201921,676 19,727
overseas 20,422 16,050
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
FY201729,727 30,582 39,461 38,198
overseas 26,570 27,174 36,036 34,834
FY201843,058 44,457 43,496 43,674
overseas 40,088 41,298 40,305 39,608
FY201947,813 49,402
overseas 44,435 44,282
37
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 38
Quarterly revenue trend
Millions of JPY
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Industrial Division
FY201710,522 13,476 15,274 20,443
overseas 8,321 12,502 13,393 16,986
FY201815,206 18,361 19,770 23,426
overseas 13,247 16,289 17,809 21,203
FY201917,536 18,138
overseas 15,595 16,203
Precision Equipment Division
FY20172,421 2,377 2,070 2,975
overseas 745 885 821 775
FY20182,516 2,640 2,187 3,339
overseas 604 794 739 1,177
FY20192,518 2,947
overseas 896 1,113
Aerospace Division
FY20173,578 3,991 3,779 4,202
overseas 2,920 3,606 3,306 3,865
FY20183,792 4,213 3,924 4,980
overseas 3,301 3,648 3,114 4,240
FY20194,168 4,431
overseas 3,389 3,704
Medical Division
FY201712,964 13,521 13,114 16,085
overseas 3,834 3,959 4,623 3,671
FY201812,936 15,855 13,943 18,090
overseas 4,148 4,586 4,682 5,335
FY201913,175 15,861
overseas 4,193 4,703
Company Information
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 40
130.0
140.9
165.3
8.1
8.7
10.3
0.0
150.0
16/12 17/12 18/12
Industrial business 63%
Medical business
37%
Industrial Division
47%Medical Division
37%
Aerospace Division
10%
FY2018
Precision Equipment Division
6%
72.3 78.0
83.1 90.1
103.6
121.5 129.2
110.2
132.8
4.7
5.6 5.3
6.5
7.4
9.4
6.1
3.8
4.8
0.0
150.0
09/3 10/3 11/3 12/3 13/3 14/3 15/3 15/12 16/12
Net sales Operating income
JGAAP IFRS
Revenue Operating Profit
( billion yen )
Trend in Revenue/Operating Profit
Consolidated Revenue
Revenue by Segment
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 41
(IFRS)(IFRS)(IFRS)(9months)
Acquired the LEWA Group Acquired Geveke B.V. Higashimurayama Aerospace factory
Acquired the Cryogenic Industries group
33,663
43,076
52,393 54,663
69,307
79,239
69,536 75,183
85,406
111,459 107,300
37,233
42,123
47,490
55,176
68,588
74,960
68,625
75,593
85,228
104,501 105,700
3,444 2,760 4,662 3,770 5,102 4,375 3,668
5,932 7,539 8,140 8,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
20,000
40,000
60,000
80,000
100,000
120,000
2010/03 2011/03 2012/03 2013/03 2014/03 2015/03 2015/12 2016/12 2017/12 2018/12 2019/12
受注高 売上収益 セグメント利益 セグメント利益率
Aerospace product expansion
Transferred production from Shizuoka to Kanazawa
(revised forecast)
Performance trend of Industrial Business
Millions of JPYOrder (Left axis) Revenue (Left axis) Operating profit (Left axis) Operating margin (Right axis)
Copyright © 2019 NIKKISO CO., LTD. All rights reserved.
136132
195 194 204
220236 232
200
247
127 129
148
189
217 217224 219
236 237
14 13 1727 30 31 28
21 28 22
0
20
40
60
80
100
120
0
50
100
150
200
250
300
09 10 11 12 13 14 15 16 17 18
受注高(左軸) 売上収益(左軸) EBITDA(左軸) 原油価格(右軸)
36%
41%
23%
FY2010
(Source)Crude oil price:The World Bank Group「Commodity Markets Outlook」
34%
36%
6%
24%
FY2015
25%
38%
10%
28%
FY2018
42
Performance trend of LEWA
Oil & Gas
Process industry
Clean market
After service
Revenue Composition ratio
Millions of € $/barrel
Order (Left axis) Revenue (Left axis) EBITDA (Left axis) Crude oil price (Right axis)
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 43
Full-scale sales of DCS-100NX,
a multipurpose dialysis
monitoring device (from
January 2012)
Sales of DBB-EXA, a dialysis device for personal use
(in overseas markets) (from 2015)
Consumption tax hike in April 2014 (to 8% from 5%)
(IFRS) (IFRS) (IFRS)
Acquired the CRRT business
Transferred production from Shizuoka to Kanazawa
Higher demand for online HDF
40,786 41,019 42,646
48,493
52,960 54,295
41,592
54,451 55,684
60,824
64,300
5,226 5,598 5,224 6,962 7,845
5,243 3,041
5,209 3,950
5,582 6,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2010/03 2011/03 2012/03 2013/03 2014/03 03/2015 2015/12 2016/12 2017/12 2018/12 2019/12
売上収益 セグメント利益 セグメント利益率
Performance trend of Medical Business
(9months)
Millions of JPY
Revenue (Left axis) Operating profit (Left axis) Operating margin (Right axis)
(revised forecast)
Copyright © 2019 NIKKISO CO., LTD. All rights reserved. 44
Medical Division
Aerospace Division
Industrial Division
69 71 74 75 83 87 95 01 09 1053 54 56 60 61 67 1285 13 15 1714 18
Footsteps of the NIKKISO Group
History
Company is established for the purpose of import and sales of reciprocating metering pumps.
Develops a water conditioning system for power plants and begins production and sales of systems.
Introduces Japan’s first leak-free canned motor pump technology and begins production and sales of pumps.
Begins import and sales of artificial dialysis machines for the first time in Japan.
Completes Japan’s first hemodialysis machine and begins production and sales of machines.
Begins production and sales of dialyzers for hemodialysis.
Begins production and sales of cascades made of carbon fiber reinforced plastic as components for commercial aircraft.
Obtains a license for the technology to manufacture Microtrac particle size analyzers from Honeywell Inc. of the U.S.
Acquires CRRT business of Baxter International Inc.
Begins production of bloodtubing lines for hemodialysisin Vietnam.
Completes construction of Higashimurayama Plant.
Listing on the second section of the Tokyo Stock Exchange.
Listing on the first section of the Tokyo Stock Exchange.
Completes construction of Shizuoka Plant.
Begins manufacturing andsales of cryogenic pumps.
Completes construction ofKanazawa Plant.
Acquires the LEWA Group of Germany.
Accepts transfer of a German Fresenius Medical Care’s dialyzer and peritoneal dialysis product selling in Japan.
Establishes a joint venture with the China-based Weigaofor the manufacture and maintenance of dialysis machine
Decides to transfer the production function from Shizuoka Plant to Kanazawa Plant as part of the anti-disaster measure.
Acquires Geveke B.V. of the Netherland
Acquires Cryogenic pump business of Atlas Copco.
Acquires the Cryogenic Industries Group of U.S.A.
Completes construction ofAerospace factory at theMiyazaki Nikkiso