0aad0ac9-8af7-4ae0-8638-2afd3aaf8df4.pdf


Yokogawa Electric Corporation

Financial Results for 3rd Quarter of Fiscal Year 2015


February 2, 2016

Hiroshi Suzuki, Senior Vice President


- 0 -

Corporate Administration Headquarters

Contents



  1. FY15 1Q-3Q Results

    P.2


  2. FY15 Forecast

    (change to profit forecast)

    P.10


  3. R&D Expenses, Depreciation, and CAPEX

  4. Trend of Stock Price

  5. News

P.14

P.16 P.17


Summary of FY15 1Q-3Q Results


  • Orders, Sales, operating income, ordinary income, and profit attributable to owners of parent all increased.

  • Orders, sales, and operating income all were up, even without factoring in the impact of the weak yen.

  • Impact of weak yen:

→Orders up ¥4.6 billion, sales up ¥3.4 billion, operating income up ¥4.7 billion

（Billion ¥）


FY14 1Q-3Q

FY15 1Q-3Q

Difference

Growth rate

Orders

303.2

317.1

13.9

4.6%

Sales

281.2

301.3

20.1

7.2%

Operating income

16.5

30.5

14.0

84.4%

Ordinary income

18.3

31.7

13.4

73.7%

Profit attributable to owners of parent

12.9

24.0

11.1

86.9%

Exchange rate (¥)

1$

107.70

121.63

13.93

－


Quarterly Financial Results


- Sales and operating income tend to be higher in 2Q and 4Q, and this trend is particularly strong

in the Japanese control segment.

（Billion¥）


FY14

FY15

1Q

2Q

3Q

4Q

Total

1Q

2Q

３Q

４Q

forecast

Total forecast


Orders


94.8


110.5


97.9


113.9


417.1


108.6


108.1


100.4


123.9


441.0

(Ratio）

23％

26％

23％

27％

100%

25％

25%

23％

28％

100％

Sales

82.8

101.6

96.8

124.6

405.8

92.7

109.5

99.1

125.7

427.0

(Ratio）

20％

25％

24％

31％

100％

22％

26%

23％

29％

100％


Operating income

2.6

7.7

6.2

13.3

29.8

6.6

13.9

10.0

8.5

39.0

(Ratio）

9％

26％

21％

44％

100％

17％

36%

26％

22％

100％

Note: The FY15 percentages are based on the forecast for FY15.


Analysis of Operating Income

（FY14 1Q-3Q/FY15 1Q-3Q comparison）



Lower gross margin

（Billion¥）

FY14 1Q-3Q

FY15 1Q-3Q

US$

107.70

121.63

Exchange rate （¥）


Increase in gross profit

from higher sales (￥16.7 billion) (excluding impact of exchange rate）

Reduction of fixed costs

¥/$ exchange rate sensitivity: approx.

+4.7

+1.2

0.4 billion for each ￥1 change (year)


＋7.0

(3.4)


30.5

＋4.5

Decrease in SG&A

16.5

・SG&A expense reduction: ¥2.4 billion

・Strategic investments: (¥1.2 billion)



FY14 1Q-3Q

operating income

FY15 1Q-3Q

operating income

FY14 1Q-3Q

FY15 1Q-3Q

Operating income

16.5

30.5

Non-operating income

3.9

2.9

Non-operating expenses

2.1

1.7

Ordinary income

18.3

31.7

Extraordinary income

1.1

1.6

Extraordinary expenses

0.3

0.2

Income before tax

19.1

33.1

Tax, etc.

6.2

9.1

Profit attributable to owners of parent

12.9

24.0

Non-operating/Extraordinary Income and Expenses


（Billion¥）


→FY14: Foreign exchange gains: ¥1.9 billion

→FY15: Foreign exchange gains: ¥0.5 billion


FY14:

Gain on sale of investment securities: ¥0.8 billion

FY15:

Gain on sales of non-current assets: ¥0.8 billion Gain on sale of investment securities:¥0.8 billion


(Effective tax rate) 25.9％ 23.9％

FY14 1Q-3Q/FY15 1Q-3Q Comparison for Orders and Sales by Segment


  • Control: Orders and sales increased due to efforts by companies in the resource, energy, and materials sectors to improve efficiency by means such as replacing plant equipment and procuring operation and maintenance services, and the continuing impact of the weak yen.

  • Orders and sales were strong in the Middle East and Japan.


Orders （Billion ¥）

Sales （Billion¥）


+13.9

(3.2)

＋1.9


+15.2

+20.1

(0.3)

(0.4)


+20.8


FY13 1Q-3Q

results

FY14 1Q-3Q

results

FY15 1Q-3Q

results

FY13 1Q-3Q

results

FY14 1Q-3Q

results

FY15 1Q-3Q

results


FY14 1Q-3Q/FY15 1Q-3Q Comparison for Operating Income by Segment

  • Control: Operating income was up from FY14 1Q-3Q due mainly to higher sales and the impact of fixed cost reductions and the weak yen.

  • Measurement: Operating income was up from FY14 1Q-3Q due mainly to the weak yen.


Operating income （Billion ¥）


（Billion ¥）



16.5

14.2

30.5

FY14 1Q-3Q

results

FY15 1Q-3Q

results

Difference

Control

15.1

28.2

13.1

Measurement

1.1

1.8

0.7

Aviation and Other

0.3

0.5

0.2

Total

16.5

30.5

14.0

+14.0

+0.2

+0.7


+13.1


FY13 1Q-3Q

results

FY14 1Q-3Q

results

FY15 1Q-3Q

results


Trend of Global Sales


- Sales outside Japan are steadily increasing.



Total （Billion ¥）

Bysegment （Billion¥）

Control Measurement Aviation andOther



74.8%

75.0%

269.3


+20.8

66.8%69.3%


70.1% 71.6%72.3%

75.0% 248.5

235.0


+20.1


+16.7


+16.2


59.9%


67.1%

65.3%


31.4%


27.8%

15.5

24.9%

19.9 17.216.8

15.415.2

+3.4


+4.6

11.9 112

11.3

3.9

4.3

4.7

8.0 6.0

5.5

11.5

11.2 10.5

FY13

FY14

FY15


FY13


FY14


FY15


FY13


FY14


FY15


FY13


FY14


FY15

1Q-3Q FY13

1Q-3Q FY14

1Q-3Q

1Q-3Q 1Q-3Q1Q-3Q

1Q-3Q1Q-3Q 1Q-3Q

1Q-3Q 1Q-3Q 1Q-3Q


Trend of Balance Sheet

-Total liabilities decreased due mainly to a reduction in long-term loans payable stemming from a repayment of ¥25 billion in subordinated loans and a ¥15.9 billion decrease in accounts payable-other associated with the solicitation of candidates for early retirement.

- Net assets increased due mainly to a ¥19.1 billion increase in retained earnings, the disposal of ¥9.3 billion in treasury shares, and a ¥4.1 billion increase in the capital surplus.

Assets

Liabilities and net assets

（Billion ¥） （Billion ¥）


FY14

FY14

FY15

FY15

FY14

FY14

FY15

FY15

3Q

1H

3Q

3Q

1H

3Q

FY4 3Q

FY14

FY15 1H

FY15 3Q

Total asset turnover

-

0.97

1.03

-

Shareholders' equity ratio

49.7%

49.0%

56.9%

57.1%

FY4 3Q

FY14

FY15 1H

FY15 3Q

Debt/equity ratio

38.0%

30.3%

20.1%

19.8%


FY15 Forecast


-In view of the FY15 1Q-3Q results and current circumstances, the FY15 forecast has been revised as follows:

Orders, sales → no change

Operating income → ¥3.0 billion up

Ordinary income, profit attributable to owners of parent → ¥5.0 billion up

（Billion ¥）


FY14 (A)

FY15 (8/7 B)

FY15 (2/2 C)

Difference (C-B)

Difference (C-A)

Growth ratio (C÷A-1)

Orders

417.1

441.0

441.0

0

23.9

5.7％

Sales

405.8

427.0

427.0

0

21.2

5.2％

Operating income

29.8

36.0

39.0

3.0

9.2

30.8％

Ordinary income

33.4

34.0

39.0

5.0

5.6

16.9％

Profit attributable to owners of parent

17.2

23.0

28.0

5.0

10.8

62.6％

EPS (¥)

66.88

86.98

105.84

18.86

38.96

58.3％

Exchange rate (¥)

1$

¥110.58

¥120.00

¥120.00

¥0

¥9.42

ー

FY15 Forecast for Orders and Sales by Segment


- There has been no change to the August 7 forecast.


Orders Sales


（Billion ¥）


+23.9

(3.9)

+1.8

（Billion ¥）


+21.2

(1.0)

+1.2


+26.0

+21.0


FY13

FY14

FY15

FY13

FY14

FY15

results

results

forecast

results

results

forecast


FY15 Forecast for Operating Income by Segment


- This forecast has been revised upward due to an anticipated increase in operating income for the control segment.


Operating income

（Billion ¥）



39.0 ←36.0

（Billion ¥）


FY14 results

FY15

forecast

Difference

Control

27.1

36.0

8.9

Measurement

1.6

2.0

0.4

Aviation and Other

1.1

1.0

(0.1)

Total

29.8

39.0

9.2

29.8

25.9


←33.0


FY13

results

FY14

results

FY15

forecast


Trend of R&D Expenses


- R&D investment is on track to reach the forecast level for FY15.


Trend of R&D expenses

By segment


8.2%


7.3%


6.6%

（Billion ¥）


6.4% 6.1%

（Billion ¥）


FY11

FY12

FY13

FY14

FY15

forecast

FY13 1Q-3Q

FY13 FY14 1Q-3Q

FY14FY15

1Q-3Q

FY15

forecast

R&D Expenses, Depreciation, and CAPEX


（Billion ¥）


FY06

FY07

FY08 FY09

FY10

FY11 FY12 FY13

FY14 1Q-3Q

FY14

FY15 1Q-3Q

FY15

forecast


FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14 1Q-3Q

FY14

FY15 1Q-3Q

FY15

forecast

R&D expenses (% of sales)

36.2

40.9

37.2

28.8

29.2

27.5

25.5

25.8

19.2

25.8

18.0

26.0

8.4%

9.3%

9.9%

9.1%

9.0%

8.2%

7.3%

6.6%

6.8%

6.4%

6.0%

6.1%

Depreciation (% of sales)

16.5

23.1

21.6

16.0

13.8

12.8

13.5

13.6

10.4

14.5

11.0

15.0

3.8%

5.3%

5.7%

5.1%

4.2%

3.8%

3.9%

3.5%

3.7%

3.6%

3.7%

3.5%

CAPEX

(% of sales)

40.3

38.0

26.8

11.1

11.3

11.1

13.5

14.0

9.7

14.1

10.5

17.0

9.3%

8.7%

7.1%

3.5%

3.5%

3.3%

3.9%

3.6%

3.4%

3.5%

3.5%

4.0%


Trend of Order Backlog by Segment


- The steady increase in the order backlog for the control segment in Japan is mainly attributed to water and wastewater applications.


（Billion ¥）


+1.9

(0.5)

+0.8

(3.4)


+5.0


FY12

FY13

FY14

FY15

FY15

FY15

1Q

2Q

3Q


Exchange rate (End of period)

94.05

102.92

120.17

122.45

119.96

120.45


Trend of Stock Price




（¥）


10/9

10/12

11/3

11/6

11/9

11/12

12/3

12/6

12/9

12/12

13/3

13/6

13/9

13/12

14/3

14/6

14/9

14/12

15/3

15/6

15/9

15/12

16/1/29

Yokogawa

568

646

634

683

740

695

837

818

902

941

946

1,187

1,398

1,615

1,667

1,281

1,442

1,333

1,295

1,574

1,247

1,465

1,331

TOPIX

830

899

869

849

761

729

854

770

737

860

1,035

1,134

1,194

1,302

1,203

1,263

1,326

1,407

1,543

1,630

1,411

1,547

1,432


10/9

10/12

11/3

11/6

11/9

11/12

12/3

12/6

12/9

12/12

13/3

13/6

13/9

13/12

14/3

14/6

14/9

14/12

15/3

15/6

15/9

15/12

16/1/29

Yokogawa

43

48

48

51

56

52

63

61

68

71

71

89

105

121

125

96

108

100

97

118

94

110

100

TOPIX

59

64

62

60

54

52

61

55

52

61

74

81

85

93

86

90

94

100

110

116

100

110

102


News（from November 5 to February 2)


Nov.

Receipt of order to supply control system for one of world's largest methanol plants



Dec.

Release of CENTUM®VP R6.02 integrated production control system

Delivery of control system for Europe's first hybrid-flywheel energy storage plant

Receipt of control system order from Toyo Engineering for ethylene plant to be built in U.S. for Shintech, a subsidiary of Shin-Etsu


CENTUM VP R6.02


Acquisition of distributor in Turkey as major step forward in emerging markets


Jan.

Acquisition of cloud data service provider Industrial Evolution, Inc.

Receipt of control system orders for large thermal power and desalination plants in Qatar


Note: The month for each news item indicates when it was published.

Disclaimer



The information pertaining to our business plans and forecasts that

has been provided in this presentation and at analyst meetings contains forward-looking statements that are based on our management's current knowledge and require the making of assumptions about future events.

As such, it cannot be guaranteed that these statements will not differ materially from actual results.


IR Group, Corporate Communications Department

Yokogawa Electric Corporation

Email: Yokogawa_Electric_IR6841@cs.jp.yokogawa.com Phone: +81-422-52-5530

URL: http://www.yokogawa.com/pr/ir/index.htm

Yokogawa Electric Corporation issued this content on 02 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 02 February 2016 07:09:08 UTC

Original Document: http://www.yokogawa.com/pr/ir/pdf/2016/201603presentation-3q-en.pdf