max co., ltd. financial results briefing for first …...2. financial results for individual...
TRANSCRIPT
MAX Co., Ltd.
Financial Results Briefing for
First Quarter of FY 2021
July 29, 2020
Participants
Akio Kitaya, Executive Officer / General Manager, General Affairs Dept.
Nobuo Suda, Deputy General Manager, General Affairs Dept.
Table of Contents
1. Financial Results for the Entire Company in the First
Quarter of FY 2021
2. Financial Results for Individual Segments in the First
Quarter of FY 2021
3. Operating Results Forecast for FY 2021
Financial Results for the Entire
Company in the First Quarter of FY 2021
1,89111.0
1,4218.2
17,249
7,13341.4
1,97911.5
Net sales
Gross profit Corresponding ratio
Operating income Corresponding ratio
Ordinary income Corresponding ratio
Net income attributable to shareholders of parental companyCorresponding ratio
Results in Q1 of
previous FY
■ Exchange rates
29.07Net income per share (yen)
-22.7(-1.0P)
-22.9(-0.7P)
-15.5
-12.6(+1.4P)
-27.3(-1.6P)
%increase/decrease
ー
1
14,574
6,23142.8
1,4399.9
1,46110.0
1,0967.5
Results in Q1 for FY under
review
22.43
Financial Results for the Entire Company
in the First Quarter of FY 2021
(FY under review)
(Previous FY)
(Planned)
1 USD
1 USD
1 USD
= 107.75 JPY
= 110.75 JPY
= 110.00 JPY
/ 1 EUR
/ 1 EUR
/ 1 EUR
= 118.24 JPY
= 123.56 JPY
= 120.00 JPY
(unit: millions of yen, %)
1,078 1,1041,254
1,421
1,096
Net income
7.8
8.6
10.6 11.0
10.0
6.8 7.07.4
8.27.5
1,4471,302
1,650
1,979
1,439
Operating
income
1,2281,367
1,794 1,891
1,461
Ordinary
income
15,76415,830
16,856
17,249
14,574
Net sales
6,3626,237
6,574
7,133
6,231
Gross profit
2
40.4 39.4
39.0
41.4
42.8
9.2
8.29.8
11.5
9.9
Changes in Financial Results for the Entire Company
in the First Quarter of FY 2017 to FY 2021
■ Q1 FY 2017 ■ Q1 FY 2018 ■ Q1 FY 2019
■ Q1 FY 2020 ■ Q1 FY 2021 ―Corresponding ratio
(unit: millions of yen, %)
3
16,856 17,351 18,067 17,843 17,249 17,635 17,488 17,297
14,574
6.5
1.54.1
-0.12.3 1.6
-3.2 -3.1
-15.5
-85-80-75-70-65-60-55-50-45-40-35-30-25-20-15-10-5051015
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
Net sales (entire company)
Rate of increase/decrease in net sales compared to the sameperiod of the previous fiscal year (entire company)
%
Millions of yen
FY 2019 FY 2020
Q1
FY 2021
Q1 Q2 Q3 Q4
Changes in Net Sales for the Entire Company by Quarter
Q1 Q2 Q3 Q4
4
1,979
1,439
152 190
1,214
168 114
354
-540
0
1,000
2,000
Foreign exchange
gain/loss in cost
-¥540 million
(unit: millions of yen)
Q1 FY 2020 Q1 FY 2021
Factors for Increase/Decrease of Operating Income
Foreign exchange gain/losson sales
Effect of
exchange rates
+¥38 millionQuantitydecrease
Increase in selling
price
Decrease in
SG&A expenses
Decrease in cost
■ Non-operating income/expenses and extraordinary income/loss
■ Facilities investment, depreciation, R&D expenses
Q1 FY 2021
-40
-60
+21
YOY
Q1 FY 2021
1,256
621
763
20.3
Rate of progress
22.9
24.3
5
54
59
4
94
119
25
Q1 FY 2020
957
Q1 FY 2020
640
781
6,193
FY 2021 annual plan
2,713
3,136
*1
Other Financial Information
Extraordinary income/loss
Extraordinary income
Extraordinary loss
Non-operating income/expenses
Non-operating income (excluding foreign exchange effect)
Non-operating expenses (excluding foreign exchange effect)
Foreign exchange gain/loss
(unit: millions of yen)
Facilities investment
Depreciation
R&D expenses
(unit: millions of yen, %)
22
89
17
-49
-87
109
21
-175
+110
-20
-4
+126
*2
*1 Refund of customs duties from previous year: ¥59 million
*2 Gain on sales of investment securities: ¥118 million, etc.
6D
om
esti
c
・ Number of new housing construction starts: Down 9.9% YOY for the period from January to March 2020
(Owner-occupied construction starts: a decrease of 8.3%, rental construction starts: a decrease of 9.6%,
built-for-sale construction starts: a decrease of 11.8% from the same period of the previous year)
⇒ Negative effect on the industrial equipment product operations (wooden structure related) and
residential environmental equipment operations
・ Construction floor area of non-residential structures: Down 9.4% YOY for the period from October 2019
to December 2019
(Offices: an increase of 20.1%, shops: a decrease of 20.3%, factories: an increase of 0.6%, warehouses:
a decrease of 19.4%)
・ There continues to be an excess of skilled rebar workers (for construction sites).
⇒ Negative effect on the industrial equipment product operations (concrete related)
Overs
eas
1 USD = 107.75 JPY, 1 EUR = 118.24 JPY
(Previous FY: 1 USD=110.75 JPY, 1 EUR=123.56 JPY; Plan: 1 USD=110.00 JPY, 1 EUR=120.00 JPY)
Regarding foreign exchange sensitivity for the consolidated financial results, we have achieved a balance
of foreign currency sales/procurement, so there is little effect on operating income.
Global economy: The economy worsened due to the decline in economic activities caused by the spread
of COVID-19.
New housing construction starts in U.S. (annualized, YOY comparison)
Number of new housing construction starts June 2020 -4.0% May 2020 -20.3%
Number of approvals for new housing construction starts June 2020 -2.5% May 2020 -9.1%
→ The number of approvals, which is a leading indicator, continued to decrease.
Recognition of the Business Environment
Surrounding the Group (Q1 of FY 2021)
Impact of the COVID-19 Pandemic7
■ Overseas industrial equipment product operations
・ Western regions gradually restarted sales visits to construction sites and business partners from
mid-May. Sites related to infrastructure construction in North America are operating even during
lockdown.
■ Overseas office operations
・ In ASEAN countries, business partners mainly dealing in stationary-related products began to
gradually resume operations from May to June; however, inventory adjustment is forecasted to
continue in for the time being.
■ Auto-stapler operations
・ The copier market remained sluggish due to stagnant economic activities.
Impact on the Production Department・ The Malaysian Plant, which manufactures stationary-related products for the overseas office operations,
had suspended operations from March 18, but restarted from the week of May 11.・ The Group’s three plants in China resumed operations in mid-February. Plants in Japan and Thailand
operated as normal.・ Operations are being adjusted according to sales levels. For example, the number of days of operation
has decreased at plants in Japan.・ Due to stagnation in the commercialization processes, the new product launch plans were delayed, and
some plans were postponed to the next fiscal year.
Impact on the Sales Segment■ Domestic business (industrial equipment product operations, residential environmental equipment
operations, office operations, HCR Equipment segment)
・ Domestic exhibitions were canceled or postponed, and sales activities slowed down.
・ After the Japanese government’s request for refraining from cross-prefectural travel was lifted from
June 19, business activities were gradually restarted.
Financial Results for Individual
Segments in the First
Quarter of FY 2021
8
Office Equipment segmentNet salesSegment profitSegment profit rate
Industrial Equipment segment Net salesSegment profitSegment profit rate
HCR Equipment segmentNet salesSegment profitSegment profit rate
586-22
-3.8
4,156732
17.6
9,831 1,34913.7
-15.5－
(+6.5P)
-25.4-45.6
(-6.6P)
-10.5-0.4
(+1.4P)
% increase/
decrease
Results in Q1 for
FY under review
Results in Q1 of
previous FY
Adjustment amount -620 ―-649
Total for entire companyNet salesOperating incomeOperating margin
14,5741,439
9.9
-15.5-27.3
(-1.6P)
17,2491,97911.5
Re
po
rte
d S
eg
me
nts
693-71
-10.3
10,9841,35412.3
5,5701,34524.2
Previously, expenses related to research and development for which commercialization is uncertain were allocated to the Office Equipment segment
and the Industrial Equipment segment. From the first quarter under review, as with expenses related to the headquarters management department,
these expenses have been changed to the method of recording as an adjustment. We changed to calculations based on the same conditions when
calculating the financial results from FY 2020 as reported in this document.
Financial Results for Individual Segments in the First
Quarter of FY 2021
(unit: millions of yen, %)
9
10,578 11,135 11,706
11,343 10,984 11,531 11,410 11,482
9,831
5,531 5,556 5,668 5,849 5,570 5,400 5,363 5,180 4,156
746 659 692 650 693 704 714 634
586
9.9 10.4 11.8 9.6 12.3 13.5 13.2 9.1 13.7
22.1 22.0 22.2 22.1 24.2 22.3 22.0 22.5 17.6
-7.4
-14.8 -9.5
-14.0 -10.3 -8.6
-3.0
-11.1
-3.8
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
0
5,000
10,000
15,000
20,000
Net sales by Industrial Equipment segment Net sale by Office Equipment segment
Net sales by HCR Equipment segment Segment profit rate for Industrial Equipment segment
Segment profit rate for Office Equipment segment Segment profit rate for HCR Equipment segment
%
30
20
10
10
-10
-20
FY 2019 FY 2021FY 2020
Q1
Changes in Segment Net Sales by Quarter
Millions of yen
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
10
Net sales: ¥9,831 million / Segment profit: ¥1,349 million(down 10.5% YOY / down 0.4% YOY)
Domestic industrial equipment product operations・ Net sales: ¥4,134 million (down 8.8% YOY)Although there was continued growth in sales of consumables for TWINTIER rebar tying tools, sales decreased for tools for wooden structures due to a decrease in the number of new housing construction starts in Japan and to stagnation in sales activities. As a result, the overall revenue decreased.
Overseas industrial equipment product operations・ Net sales: ¥3,445 million (down 8.0% YOY)Sales decreased for tools for wooden structures and tools for concrete structures (rebar tying tools, etc.) due to stagnation in sales activities caused by factors including stay-at-home regulations in regions of Western countries. As a result, the overall revenue decreased.
Residential environmental equipment operations・ Net sales: ¥2,251 million (down 16.7% YOY)In addition to falling sales of ventilation systems, a decrease in the number of new housing construction starts in Japan led to decreased sales of bathroom heaters, ventilators and dehumidifiers to new residences such as detached houses. As a result, the overall revenue decreased.
9.9 12.3
13.7
4,364 4,534 4,134
3,624 3,745 3,445
2,588 2,704
2,251
FY 2019 FY 2020 FY 2021
10,984
9,83110,578
Industrial Equipment Segment Financial Results for the First Quarter of FY 2021
■ Net sales in the domestic industrial
equipment product operations
■ Net sales in the overseas industrial
equipment product operations
■ Net sales in the residential environmental
equipment operations
ー Segment profit rate for Industrial
Equipment segment
(unit: millions of yen, %)
11
4,3645,097 5,437 5,350
4,5345,398 5,069 5,124
4,134
3,624 3,428 3,194 3,100 3,745
3,470 3,548 3,615
3,445
2,588 2,609
3,074 2,892 2,704
2,662 2,792 2,742
2,251
11.2
5.2 5.9 1.7 3.8 3.6 -2.5 1.2
-10.5
-90-85-80-75-70-65-60-55-50-45-40-35-30-25-20-15-10-505101520
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Net sales in the residential environment operations
Net sales in the overseas industrial equipment product operations
Net sales in the domestic industrial equipment product operations
Rate of change in net sales YOY for Industrial Equipment segment
%
FY 2019 FY 2021FY 2020
Industrial Equipment Segment Changes in Net Sales by Quarter
Millions of yen
12
22.1 24.2
17.6
Net sales: ¥4,156 million / Segment profit: ¥732 million (down 25.4% YOY / down 45.6% YOY)
Domestic office operations・ Net sales: ¥1,674 million (down 14.8% YOY)Sales of the tube marker LETATWIN and BEPOP label-making machines decreased due to factors including the cancellation of exhibitions and the stagnation of proposal activities. Furthermore, sales decreased for stationary-related products. As a result, the overall revenue decreased.
Overseas office operations・ Net sales: ¥831 million (down 36.8% YOY)Sales decreased in areas such as stationary-related products, particularly in the Asian market, due to stagnation of economic activities caused by factors including stay-at-home regulations in each country. As a result, the overall revenue decreased.
Auto-stapler operations・ Net sales: ¥1,650 million (down 27.9 YOY)Sales decreased for machinery and consumables due to sluggish business in the copier market. As a result, the overall revenue decreased.
1,957 1,965 1,674
1,283 1,315
831
2,290 2,289
1,650
FY 2019 FY 2020 FY 2021
5,5705,531
4,156
Office Equipment SegmentFinancial Results for the First Quarter of FY 2021
■ Net sales in the domestic office
operations
■ Net sales in the overseas office
operations
■ Net sales in the auto-stapler operations
ー Segment profit rate for Office Equipment
segment
(unit: millions of yen, %)
13
1,957 1,926 2,080 2,335 1,965 2,025 1,927 2,261 1,674
1,283 1,306 1,280 1,266
1,315 1,148 1,043 1,015
831
2,290 2,323 2,307 2,248
2,289 2,226 2,393 1,903
1,650
1.4 -2.8
2.9 -0.5 0.7
-2.8 -5.4
-11.4
-25.4
-90.0-85.0-80.0-75.0-70.0-65.0-60.0-55.0-50.0-45.0-40.0-35.0-30.0-25.0-20.0-15.0-10.0-5.00.05.010.015.020.0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Net sales in the auto-stapler operations
Net sales in the overseas office operations
Net sales in the domestic office operations
Rate of change in net sales YOY for Office Equipment segment
%
FY 2019 FY 2021FY 2020
Office Equipment Segment Changes in Net Sales by Quarter
Millions of yen
14
Net sales: ¥586 million / Segment profit: -¥22 million(down 15.5% YOY / －% YOY)
HCR Equipment segmentSales of wheelchairs, the mainstay product of the segment, were
sluggish due to a decreased number of visits to medical and welfare
institutions. However, the extent of losses decreased as the result of
cutting fixed expenses, etc.
-7.4 -10.3
-3.8
746 693 586
FY 2019 FY 2020 FY 2021
HCR Equipment SegmentFinancial Results for the First Quarter of FY 2021
■ Net sales by HCR Equipment
segment
ー Segment profit rate for HCR
Equipment segment
(unit: millions of yen, %)
15
746659 692 650 693 704 714 634 586
-13.4 -16.6
-11.9 -20.6
-7.0
6.8 3.1 -2.4
-15.5
-90-85-80-75-70-65-60-55-50-45-40-35-30-25-20-15-10-505101520
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Net sales by HCR Equipment segment
Rate of change in net sales YOY for HCR Equipment segment
%
FY 2019 FY 2021FY 2020
HCR Equipment Segment Changes in Net Sales by Quarter
Millions of yen
16
1,953 1,805 1,9751,403
2,041 1,961 1,849 2,154 2,240
2,003 1,972 1,768
1,793
2,044 1,909 1,692
2,129 1,646
2,028 2,167 2,075
2,128
2,147 1,968
2,039
1,591
1,324
17.1
7.8 10.3
-0.64.1
-1.8 -4.1
10.3
-16.4
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Net sales in North America Net sales in Europe
Net sales in Asia Total overseas net sales (rate of change YOY)
6,2325,838 5,875
5,210
%
36.1
5,984
33.1
FY 2019
5,944
33.8
32.0
5,818
35.5 34.3 32.2 29.8
32.9
34.0
FY 2021
5,324
FY 2020
35.7
5,579
Changes in Overseas Net Sales by Quarter
Millions of yen
Ratio of overseas net sales
(%)
*Includes overseas net sales for auto-stapler operations.
20
10
0
-10
1,779 1,899
2,075
1,579 1,597
1,262
268 249 108
174 141
165
425 448
383
1,733 1,872
1,193
28 26
24
0
500
1,000
1,500
2,000
2,500
FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021
Industrial Equipment segment Office Equipment segment
HCR Equipment segment
17
2,147
2,0282,044
2,0032,041
1,953
2,240
1,646
1,324
Changes in Segment Net Sales by Overseas Region Financial Results for the First Quarter of FY 2021
Asia (excluding Japan)EuropeNorth America
Millions of yen
Topics: Status of Activities for Domestic and
Overseas Operations18
TWINTIER rebar tying tools・ In Japan, consumables for TWINTIER rebar tying tools increased.
・ In Western countries, we are hosting webinar study sessions on
product features and sales know-how for local dealers. Machinery
sales increased at some business partners in North America.
・ In domestic operations and at our subsidiary Lighthouse (UK)
Ltd., we created signs aimed at preventing COVID-19
infections and distributed information to our business
partners and users. Lighthouse continues to hold online
demonstrations.
Domestic industrial equipment product:
AF (Agriculture Food) operations
BEPOP label-making machines
・ Due to changes in lifestyle after the emergency declaration,
sales volume of fruits and vegetables in supermarkets
increased. As the result, sales of the CONI-CLIPPER bag
closing machine increased in AF operations.
Operating Results Forecast
for FY 2021
■ Exchange rate forecast
(FY under review) 1 USD = 110.00 JPY / 1EUR = 120.00 JPY
(Previous FY) 1 USD = 109.13 JPY / 1EUR = 121.26 JPY
19
First half Full year
Plan Previous FY YOY Plan Previous FY YOY
Net sales 29,800 34,885 -14.6 63,500 69,671 -8.9
Operating income
Corresponding ratio
2,550
8.6
4,065
11.7
-37.3
(-3.1P)
5,700
9.0
7,586
10.9
-24.9
(-1.9P)
Ordinary income
Corresponding ratio
2,570
8.6
3,913
11.2
-34.3
(-2.6P)
5,800
9.1
7,405
10.6
-21.7
(-1.5P)
Net income attributable to shareholders of parental companyCorresponding ratio
1,880
6.3
2,858
8.2
-34.2
(-1.9P)
4,200
6.6
5,510
7.9
-23.8
(-1.3P)
Net income per share (yen) 38.44 58.44 ー 85.88 112.67
ー
*Preconditions for Plan : Although trends for restarting economic activity are observed in Japan and around the
world, we cannot predict when the COVID-19 turmoil will calm down. However, we do not foresee measures
such as the reissuance of an emergency declaration.
Plan for Entire Company in FY 2021
(unit: millions of yen, %)
20
First half Full year
Plan Previous FY YOY Plan Previous FY YOY
Industrial Equipment segment
Net sales
Segment profit
Segment profit rate
20,580
2,690
13.1
22,5162,91012.9
-8.6
-7.6
(+0.2P)
42,850
5,550
13.0
45,409
5,454
12.0
-5.6
+1.8
(+1.0P)
Office Equipment segment
Net sales
Segment profit
Segment profit rate
8,000
1,190
14.9
10,9702,55123.3
-27.1
-53.4
(-8.4P)
18,000
3,200
17.8
21,515
4,895
22.8
-16.3
-34.6
(-5.0P)
HCR Equipment segment
Net sales
Segment profit
Segment profit rate
1,220
-50
-4.1
1,397-132-9.5
-12.7
ー(+5.4P)
2,650
-50
-1.9
2,746
-224
-8.2
-3.5
ー(+6.3P)
Adjustment amount -1,280 -1,264 ー -3,000 -2,538 ー
Total for entire companyNet salesOperating incomeOperating margin
29,800
2,550
8.6
34,885
4,065
11.7
-14.6
-37.3
(-3.1P)
63,500
5,700
9.0
69,671
7,586
10.9
-8.9
-24.9
(-1.9P)
Segment Plans in FY 2021
(unit: millions of yen, %)
Facilities Investment Plan21
FY 2020 Plan for FY 2021
Facilities
Investment
Actual results: ¥2,850 million
■ Main investments
・ Enhancement of production capability at
domestic plants: ¥1,070 million
・ Investment related to headquarters sales
for domestic sales offices: ¥430 million
・ Enhancement of production facilities at
Thai Plant: ¥420 million
Plan: ¥6,190 million
■ Main investment plan
・ Establishment of new logistics center: ¥1,400
million (total: ¥2,500 million)
・ Renewal of west Japan sales offices: ¥1,060
million (total: ¥1,630 million)
・ Enhancement of production capacity of rebar
tying tools: ¥270 million
・ Renewable energy (solar) power generation
facilities: ¥190 million
・ Improvement of the workplace environment:
¥140 million
31.7 30.3 30.7 31.1
31.7
71.8
91.6
38.8
59.9
101.8
37.6
43.9 45.7
40.3
45.3
70.5
161.3
111.1
77.8
72.8
63.3
56.6 54.7
43.8 44.5 42.5 40.8
53.6
1.8 2.0 2.1 2.2 2.2 2.2 2.2 2.2 2.1 2.2 2.1 2.2 2.3 2.7 2.9 2.9 2.9 2.9 3.0 3.0 2.9 2.9 2.8 3.0
3.2 3.0 3.0 3.0 2.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0
50
100
150
FY1993
FY1994
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
%
3.0
40
22 Dividends Policy Payout Ratio and Dividends to Net Assets Ratio
Dividends policy
Based on consolidated financial results, seek to “maintain a minimum of
40% payout ratio with a target ratio of dividends to net assets of 3.0%.”
― Payout ratio (left axis)
― Dividends to net assets ratio (right axis)
*Non-consolidated base until FY 2005. Plan
Maintaining a minimum
of 30% payout ratio
with a target ratio of
dividends to net assets
of 2.0%
Maintaining a
minimum of 40%
payout ratio with a
target ratio of
dividends to net
assets of 2.5%
Maintaining a
minimum of 40%
payout ratio with a
target ratio of
dividends to net
assets of 3.0%
15
17
19
21 22 22 22 22 22 22 22
24
26
31
35 36 36 36 36 36 36 36
37
39
42 42
44
46 46
0
10
20
30
40
50
FY1993
FY1994
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
23 Dividends Policy Dividends per Share
Plan
JPY
… 12
… 13
… 14
… 15
… 16
… 17
… 18
… 19
… 20
The contents listed in this document are based on information currently available to the
Company and certain assumptions that are deemed as reasonable. Please be aware that actual
business results, etc., may differ considerably depending on various factors.