DMG MORI CO., LTD.
FY 2019 (Jan-Dec) Results
St
IR Announcement
February 14, 2020
0 /34
Agenda
- FY2019 Financial Summary
- Business Environment
- Key topics
- Open House Pfronten (Feb 11th-15th)
- R&D:Automation & Digitization
- Production:Efficient in-house production & TULIP
- SSEP:5-axis machine promotion & digital service
- SDGs (Carbon footprint neutral & Trainings)
2020/2/14 | 1 /34 |
Highlights
FY2019 (Jan-Dec) Results
- Consolidated order intake JPY 409.4 bn. (-22.9%year-on-year)
- Sales JPY 485.8 bn. (-3.1%y-o-y), operating profit JPY 37.3 bn (+3.0% y-o-y)
- Diverse customer base: the aerospace industry's share expanded to 16% (equivalent to the automobile industry's)
- Average unit price increased by 6% y-o-y, with the recent trend for 5-axis machines, process integration, and system solutions, and boosting sales to the aerospace customers
- Continuously growing repair/service order intake with larger installation base (+3% y-o-y)
- Free cash flows JPY 20.1 bn., net debt JPY 75.5 bn. (JPY 82.8 bn. at the end of 2018)
FY2020 (Jan-Dec) Plan
- Consolidated order intake JPY 420.0 bn. (+3% y-o-y)
- Sales JPY 400.0 bn. (-13%y-o-y, excluding energy business), operating profit JPY 20.0 bn. (-46%y-o-y)
(Sales of energy business: JPY 26.6 bn. in 2019 to 0 in 2020) - Efficient production and financial structure with build-to-order manufacturing system
Free cash flows | : JPY 13.0 bn. |
Annual dividend per share: JPY 60 (JPY 60 in 2019) | |
Net-debt at the year-end | : JPY 70.0 bn. or less |
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Income Statement Summary
(JPY bn) | FY2018 | FY2019 | Changes | FY2019 | FY2020 | Changes | ||||||
( ) | Original | Plan | ( | %) | ||||||||
% | ||||||||||||
Company-wide order intake | 531.2 | 409.4 | -22.9 | ー | 420.0 | +2.6 | ||||||
Sales revenue | 501.2 | 485.8 | -3.1 | 485.0 | 400.0 | -17.7 | ||||||
ー | ||||||||||||
Sales revenue (excluding energy business)* | 487.3 | 459.2 | -5.8 | 400.0 | -12.9 | |||||||
Operating profit | 36.3 | 37.3 | +3.0 | 37.0 | 20.0 | -46.4 | ||||||
% to sales revenue | % | 7.7% | 7.6% | 5.0% | ||||||||
7.2 | ||||||||||||
Net financial costs | -5.2 | -5.9 | -6.0 | -6.0 | ||||||||
(thereof, economic compensation associated with | (-2.5) | (-3.5) | (-3.5) | (-3.5) | ||||||||
DA) | ||||||||||||
Profit before taxes | 31.3 | 31.5 | +0.6 | 31.0 | 14.0 | -55.5 | ||||||
Net profit | 19.4 | 18.9 | -2.6 | 20.5 | 8.8 | -53.3 | ||||||
Net profit attributable to owners | 18.5 | 18.0 | -2.8 | 19.5 | 8.5 | -52.8 | ||||||
Depreciation & amortization with lease | ー | 23.1 | 23.3 | 23.0 | ||||||||
D&A without lease | 18.5 | 18.4 | 18.5 | 18.5 | ||||||||
Capital expenditure | 19.3 | 21.2 | 19.0 | 19.0 | ||||||||
USD/JPY | 110.4 | 109.1 | 109.0 | 110 | ||||||||
EUR/JPY | 130.4 | 122.1 | 122.0 | 120 | ||||||||
*Energy business is sold in end Jun 2019 |
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Quarterly financial results
(JPY bn) | 148.0 | (JPY bn) | |||||||
140.0 | 12.8 | 136.4 | 14.0 | ||||||
Sales (left-axis)121.4 | 120.6 | ||||||||
120.0 | 118.0 | 118.1 | 12.0 | ||||||
113.8 | 110.7 | ||||||||
10.4 | |||||||||
9.7 | |||||||||
100.0 | 9.6 | 8.8 | 10.0 | ||||||
8.6 | |||||||||
80.0 | OP | 7.7 | 8.0 | ||||||
(right-axis) | |||||||||
60.0 | 6.1 | 6.0 | |||||||
40.0 | 4.0 | ||||||||
20.0 | 5.4 | 8.0 | 6.6 | 8.6 | 8.6 | 8.1 | 7.7 | 6.4 | 2.0 |
OP margin | |||||||||
% | % | % | % | % | % | % | % | ||
0.0 | 0.0 | ||||||||
2018Q1 | Q2 | Q3 | Q4 | 2019Q1 | Q2 | Q3 | Q4 | ||
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2019 Result / Operating profit bridge -2018 vs 2019
(JPY bn) | FY2018 | FY2019 | +/- |
Sales | 501.2 | 485.8 | -15.4 |
Sales excluding energy business | 487.3 | 459.2 | -28.1 |
(JPY bn) | +7.7 |
FY2018 | FY2019 | |
USD/JPY | 110.4 | 109.1 |
EUR/JPY | 130.4 | 122.1 |
-6.7
R&D, Others | ||||
Margin | Supply chain | Business efficiency | Volume | |
improvements | ||||
improvement | +3.0 | +0.2 | -4.3 | Forex |
+4.5 | -2.4 | |||
0 | ||||
36.3 | 37.3 |
FY2018 | FY2019 | 0 |
Operating profit | Operating profit |
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2020 Plan / Operating profit bridge -2019 vs 2020
(JPY bn) | FY2019 | FY2020E | +/- |
Sales | 485.8 | 400.0 | -85.8 |
Sales excluding energy business | 459.2 | 400.0 | -59.2 |
(JPY bn) | +4.0 |
Margin | Supply chain |
improvement | |
+1.5 | |
+2.5 | |
37.3
FY2019 | FY2020E | |
USD/JPY | 109.1 | 110.0 |
EUR/JPY | 122.1 | 120.0 |
-21.3
Volume
-21.3
20.0
0 | ||
FY2019 | FY2020 Plan | |
Operating profit | Operating profit |
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Cash flows
(JPY bn.) | FY2018 | FY2019 | ||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |||||||||||||
Cash flow from operation | 7.8 | 13.5 | 10.5 | 17.5 | 49.4 | 13.0 | 3.8 | 4.3 | 22.5 | 43.6 | ||||||||||||
Profit before taxes | 5.0 | 8.7 | 6.5 | 11.2 | 31.3 | 8.8 | 8.2 | 7.1 | 7.4 | 31.5 | ||||||||||||
Depreciation & amortization | 4.5 | 4.5 | 4.5 | 5.0 | 18.5 | 5.5 | 5.3 | 5.9 | 6.4 | 23.1 | ||||||||||||
+/- in working capital | 5.8 | 1.8 | -0.3 | -2.7 | 4.6 | 3.5 | -4.8 | -5.1 | 2.2 | -4.2 | ||||||||||||
Others | -7.5 | -1.5 | -0.1 | 4.0 | -5.0 | -4.8 | -4.9 | -3.6 | 6.5 | -6.8 | ||||||||||||
Cash flow from investments | -3.2 | -3.1 | -3.0 | -9.7 | -19.0 | -3.6 | -1.6 | -9.6 | -8.7 | -23.5 | ||||||||||||
(thereof, acquisition of | -3.0 | -3.7 | -3.2 | -9.3 | -19.3 | -3.1 | -5.3 | -4.3 | -8.5 | -21.2 | ||||||||||||
fixed assets) | ||||||||||||||||||||||
FCF | 4.7 | 10.3 | 7.5 | 7.8 | 30.4 | 9.4 | 2.2 | -5.2 | 13.7 | 20.1 | ||||||||||||
+ | Less down payment due to reduced order intake | |||||||||||||||||||||
FY2018 | FY2019 | |||||||||||||||||||||
Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4
- | Quarterly free cash flows |
2020/2/14 | 7 /34 |
Financial position summary
-Increase of total assets due to application of lease account standards
Assets | Liability & Equity |
Short-term | JPY 528.4 bn | JPY 524.6 bn | JPY 528.4 bn | JPY 524.6 bn | |
34.2 | 33.2 | 56.8 | 54.9 | Payables | |
Financial assets | |||||
Trade receivables | 69.4 | 55.3 | 61.7 | 37.5 | Advance |
payments | |||||
(Interest-bearing debt -
Net Debt Short-term financial asset)
(JPY bn)
130.7 | 120.9 | 108.7 | Interest-bearing | Ended Dec 2018 | 82.8 | ||||||
Inventories | 117.0 | ||||||||||
debts | |||||||||||
92.3 | Obligation of | ||||||||||
Fixed assets | |||||||||||
AG share | Ended Dec 2019 | 75.5 | |||||||||
149.0 | 94.7 | ||||||||||
(Reflected new | 128.7 | purchase | |||||||||
standard for lease) | Other | ||||||||||
103.4 | |||||||||||
84.0 | Liabilities | ||||||||||
Goodwill | 68.9 | 66.5 | (New standard | ||||||||
for lease:15.5) | |||||||||||
Shareholders' | Ending Dec 2020 70.0 or less | ||||||||||
Intangibles | 65.4 | 62.8 | 111.1 | 124.0 | equity | ||||||
Shareholders' | |||||||||||
31.1 | 36.9 | ||||||||||
Other assets | equity ratio: 23.6% | ||||||||||
Dec 2018 | Dec 2019 | Dec 2018 | Dec 2019 |
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Dividend policy
Target: stable increase in line with the free cash flows' performance
Annual dividend per share (JPY)
(JPY)
70
60
50
40
30
20
10
0
6060
50
40
26
FY2016 | FY2017 | FY2018 | FY2019 | FY2020E |
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Agenda
- FY2019 Financial Summary
- Business Environment
- Key topics
- Open House Pfronten (Feb 11th-15th)
- R&D:Automation & Digitization
- Production:Efficient in-house production & TULIP
- SSEP:5-axis machine promotion & digital service
- SDGs (Carbon footprint neutral & Trainings)
2020/2/14 | 10 /34 |
Consolidated order composition (by region)
※Value basis
(JPY Mil.)
160,000
120,000
9%
5%
80,000
20%
31%
40,000
22%
13%
0
9% | ||||
8% | 7% | |||
8% | ||||
5% | 8% | 8% | 18% | |
5% | 7% | 16% | ||
7% | ||||
17% | ||||
17% | ||||
20% | ||||
36% | 31% | |||
38% | ||||
31% | 34% | |||
18% | 20% | 19% | ||
22% | 19% | |||
17% | 12% | 15% | 12% | 16% |
8%
6%
17%
33%
20%
16%
8%
5%
18%
32%
18%
19%
8%
6%
17%
33%
20%
16%
11%
6%
18%
29%
18%
18%
9% 3%
5% 6%
20% 17%
27% 37%
21%
18%
18% 19%
7% | ||
7% | ||
14% | 10% | 8% |
6% | ||
5% | ||
19% | 22% |
37% | |
33% | 32% |
22%
17% 19%
13% 15% 14%
6% China
6% Asia
21% Americas
EMEA*
38% Russia
Turkey
14% Germany
15% Japan
*Europe, the Middle East and Africa
2020/2/14 | 11 /34 |
DMG MORI quarterly consolidated machine order intake
JPY-basis
(JPY 100 Mil.)
Euro-basis
(Euro Mil.)
FX USD (JPY) EUR
2020/2/14 | 12 /34 |
Average order price per unit (machine body)
(JPY Mil.) | (Euro K) | |||||||||
40.0 | 400 | |||||||||
35.0 | 350 | |||||||||
JPY-basis(left-axis) | ||||||||||
30.0 | 300 | |||||||||
25.0 | 250 | |||||||||
20.0 | EUR-basis(right-axis) | 200 | ||||||||
15.0 | 150 | |||||||||
10.0 | 100 | |||||||||
5.0 | 50 | |||||||||
0.0 | 0 | |||||||||
FY2012 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | |||
EUR/JPY | 102.63 | 129.70 | 140.42 | 134.32 | 120.34 | 126.68 | 130.44 | 122.08 |
2020/2/14 | 13 /34 |
Order composition
※Value basis
FY2019 Full year
by industry | by customer's number | ||||||
of employee | |||||||
Construction Others | |||||||
1,001 or more | |||||||
Energy, Power | |||||||
Medical | Machinery | 501~1,000 | 1~20 | ||||
Electronics, | |||||||
Precision, | |||||||
Semicon | current+ | ||||||
JPY 409.4 bn | |||||||
Die & | potential users | ||||||
(Jan-Dec) | Approx. | ||||||
Mold | |||||||
300K | |||||||
Aerospace | 101~500 | ||||||
SMEs* | 21~100 | ||||||
Automotive
Motorcycle
*Small and medium-sized enterprises
by product type
Advanced | |
Vertical MC | technologies |
Turning Center | |
CMX | 5-axis |
V series |
JPY 409.4 bn (Jan-Dec)
MillTurn
Horizontal MC
2020/2/14 | 14 /34 |
Demand by region & industry
Region | Industry | |||||||||||||
DOWN | Flat | UP | DOWN | Flat | UP | |||||||||
Japan | Machinery | |||||||
Europe | Automotive | |||||||
North | SMEs | |||||||
Americas | ||||||||
China | Aircraft | |||||||
Asia | Die & Mold | |||||||
(excl. China) | ||||||||
Electronics | ||||||||
Energy | ||||||||
Medical | ||||||||
Construction | ||||||||
Machinery |
2020/2/14 | 15 /34 |
Agenda
- FY2019 Financial Summary
- Business Environment
- Key topics
- Open House Pfronten (Feb 11th-15th)
- R&D:Automation & Digitization
- Production:Efficient in-house production & TULIP
- SSEP:5-axis machine promotion & digital service
- SDGs (Carbon footprint neutral & Trainings)
2020/2/14 | 16 /34 |
Major events in 2020 (incl. DMG MORI locations)
Feb | Jun |
Pfronten | Seebach |
Open house | Open house |
(2/11-2/15) | (6/16-6/19) |
Tortona | |
Open house | |
(6/24-6/27) |
Dec
Tokyo JIMTOF(12/7-12/12)
Sep | Oct | ||
Milan | |||
Chicago | |||
Mar | BIMU (10/14-10/17) | ||
May | IMTS (9/14-9/19) | ||
Seoul | Iga | ||
SIMTOS | Innovation Days | Stuttgart | |
(3/31-4/4) | (5/19-5/23) | Oct | |
AMB | |||
FAMOT | |||
Bergamo | (9/15-9/19) | ||
Open house | |||
Open house | |||
(10/20-10/23) | |||
(5/13-5/16) | |||
DMG MORI locations |
2020/2/14 | 17 /34 |
Pfronten Open House Feb 11-15
Digital Factory | Automation | World premiere | Additive manufacturing | |||
2020/2/14 | 18 /34 |
Pfronten OH - DMU/C 65 H monoBLOCK
World
premiere
DMU/C 65 H
monoBLOCK
Work:Electric motor housing (Automotive)
Work size:280 x 300 x 450 mm
Work:Access Door (Aerospace)
Work size:560mm x 290mm x 60mm
2020/2/14 | 19 /34 |
Pfronten OH - LASERTEC 200/400 Shape
World
premiere
LASERTEC 400
Shape
Work:Reflector
(Die and Mold /Automotive) Work size:400×500×300mm
Work:Motor cover
(Die and Mold /Automotive) Work size: 400×320×60mm
2020/2/14 | 20 /34 |
Pfronten OH
Additive Manufacturing / LASERTEC 30 Dual SLM
World
premiere
LASERTEC 30
Dual SLM
80% productivity improvement
2020/2/14 | 21 /34 |
AM Lab & Fab
Build-to-order production starts from Q3
2020/2/14 | 22 /34 |
R&D (1)
Promotion of automation
Robot
2020/2/14 | 23 /34 |
R&D (2) | |
Automation - Work handling | Automation - Pallet handling |
DMU 200 Gantry with WH210 | PH-AGV 50 |
2020/2/14 | 24 /34 |
Production (1)
DMG MORI FABTECH introduced robot welding system by TRUMPF
Robot welding system
Used for welding of NTX2000Ge2 lower turret's cover
Lead time down by 80%
Lead time | |
Manual welding | 100 min. |
Robot welding | 20 min. |
2020/2/14 | 25 /34 |
Production (2)
Iga Campus introduced TULIP
Purpose
Digitization of all the processes to improve operability, skill, and quality
■ All DMG MORI plants' processes to be digitized
■ Agile development for faster digital conversion ■ Employees trained before introduction
Workbench+TULIP | Sample in assembly process | |
2020/2/14 | 26 /34 |
Sales service engineering parts (SSEP) (1)
Promotion of 5-axis machines
- 1-yearanniversary of 5-axis Technology Research & Study Group
- 788 private lessons (Aug 2, 2018-Dec 31, 2019) for 2,277 operators
5-axis machine's | 2018 | 2019 |
share in order intake | ||
Japan | 13% | → 20% |
Global | 34% → 38% |
2020/2/14 | 27 /34 |
Sales service engineering parts (SSEP) (2)
my DMG MORI portal 5,000 customers registered since the release at EMO in Sep 2019
40,000 customers to be registered in total (target)
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SDGs
Carbon footprint zero by 2020 in Europe
Japan following the Europe's lead
1. Use renewable energy
2. Reduce carbon footprint
3. Launch carbon projects (DMG MORI Forest)
2020/2/14 | 29 /34 |
DMG MORI Academy
- No. of trainees in 2019: Approx. 330 customers 1,600 employees
- Train over 100 young application engineers
- 81 units available for training
2020/2/14 | 30 /34 |
TQM competition (Dec 16)
- 7 teams competed at the final (out of 85 teams enrolled)
- Visualized challenges and defined solutions
Select a | Understand | Analyze | |
current | Set goals | ||
theme | main factors | ||
status | |||
Plan, carry out, and measure impact of a solution
Plan
ActDo
Check
標準化・管理 | 振り返り、 |
Standardize | Review |
theの定着solution | |
今後 |
2020/2/14 | 31 /34 |
Work style reform
- Maximum office hours: 10 hours
Minimum interval between two working days: 12 hours (Jan 2020-)
- Maximum annual working hours in 2020: 1,998 hours
- Employees more likely to use all the paid-days off
【Change in rules】
Annual working hours /person
(-Dec 2019)
(hours) | ||||||||
max. 12 hrs at office | Minimum interval: 12 hrs | max. 12 hrs | ||||||
2,100 | ||||||||
2,080 | ||||||||
2,060 | ||||||||
2,040 | ||||||||
(Jan 2020-) | 2,020 | |||||||
2,000 | ||||||||
1,980 | ||||||||
max. 10 hrs | Minimum interval: 12 hrs | max. 10 hrs | 1,960 | |||||
1,940 | ||||||||
1,920 | ||||||||
2016 2017 2018 2019 2020
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Paternal leave
- Started in Jan 2020
- For fathers with a child/children younger than 1 year old
- The first 20 days of the paternal leave counted as paid-days off
Child-care support available for male employees
2020/2/14 | 33 /34 |
Disclaimer
This material contains targets, plans, etc. concerning the future of DMG MORI CO., LTD. and the DMG MORI Group. All predictions concerning the future are judgments and assumptions based on information available to DMG MORI at the time of writing. There is a possibility that the actual future results may differ significantly from these forecasts, due to changes in management policy or changes in external factors.
There are many factors which contain elements of uncertainty or the possibility of fluctuation including, but not limited to, the following:
- Fluctuations in exchange rates
- Changes to the laws, regulations and government policies in the markets where DMG MORI CO., LTD. conducts its business
- DMG MORI CO., LTD.'s ability to develop and sell new products in a timely fashion
- Instability of governments in the markets where DMG MORI CO., LTD. conducts its business
- Operational changes by the competent authorities or regulations related to anti-trust, etc.
2020/2/14 | 34 /34 |
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DMG Mori Co. Ltd. published this content on 14 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2020 06:58:03 UTC