Amada: Consolidated results for the year ended March 31, 2022 (with script)

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I would like to start with a financial summary for the year ended March 2022.

Over the past fiscal year, as demand has grown rapidly with the recovery from the COVID-19 pandemic, growing environmental awareness to achieve carbon neutrality and advances in digitalization have spurred a tightening of balance between supply and demand for steel materials and semiconductors, leading to soaring prices and scarcity of resources and materials.

This, combined with disruptions to supply chains and logistics caused by the spread of coronavirus mutations, and the emergence of geopolitical risks from the feared Russian military invasion of Ukraine, has accelerated the nflation due to rising resource prices and interest rates hikes aimed at controlling this inflation cooled the economy, raising fears of an economic recession towards the end of the year.

Under these circumstances, at the time of the third quarter financial results announcement, we left our earnings guidance unchanged and stated that there was a possibility of swing up or down due to risks of supply chain and associated constraints on order receipt and sales activities. . In the end, revenue amounted to 312.6 billion yen, up 24.8% over the previous year, operating profit at 38.5 billion yen, up 44.3%, and net profit at 27.7 billion yen, up 49.6%, all above our forecast.

Orders received were strong, particularly from overseas, due to a combination of subsidy effects and real demand for automation and efficiency, and amounted to 375 billion yen, up from 47% from the prior year and at an all-time high, approximately 12% higher than the highest level in fiscal 2018 to date.

As I mentioned, revenue increased 24.8% from the previous year to 312.6 billion yen. Compared to the revised guidance announced at the time of the second quarter results announcement, which is shown on the right, the result was an increase of approximately 1%, partly due to the impact of exchange rates.

Gross profit was 133.6 billion yen, an increase of 34.7% over the same period last year, and gross profit margin increased by 3.1 percentage points from from 39.6% to 42.7%. This is also a 0.4 percentage point improvement from the revised forecast of 42.3%.

The main reasons for the increase in gross profit margin were 1.9 percentage points due to higher capacity utilization due to higher production, 0.7 percentage points due to improvement in selling prices and

0.3 percentage point from the rationalization of manufacturing costs, despite the impact of higher prices for steel and other materials.

SG&A expenses were JPY 94.4 billion, an increase of JPY 12.8 billion year-on-year, but the SG&A ratio improved to 30.2% from 32.6% a year earlier. The variable cost ratio increased by 0.4% due to an increase in the ratio of exports to foreign subsidiaries and the impact of higher logistics costs.

In addition, fixed costs increased by 9 billion yen compared to the previous year, but only by 6.6 billion yen taking into account exchange rates.

The main factors of the increase are personnel costs and costs related to sales linked to the increase in turnover and R&D expenses. We will explain the details later.

As a result, operating profit amounted to 38.5 billion yen, an increase of 44.3% over the previous year. However, since a gain of about 10 billion yen from the sale of fixed assets was recorded in the previous year, operating profit

by Japanese standards, excluding this special factor, was 2.2 times that of the previous year, a significant increase, as the cost reduction and rationalization effects of the previous year also continued.

At the beginning of the previous fiscal year, we announced that it would not be wise to cut expenses excessively, which would lead to reduced selling power, and that we would focus on increasing turnover while remaining mindful of the 200 billion yen break-even point. indicate. The break-even point was 210 billion yen, partly thanks to the increase in revenue from 280 billion yen in our initial forecast to 312.6 billion yen.

The yen weakened against the US dollar at 112.38 JPY, the euro at 130.56 JPY and the Chinese yuan at 17.51 ​​JPY.

As mentioned in early order trends, orders received totaled 375 billion yen, up 47% from 255.1 billion yen in the prior year.

Of this total, the Sheet Metal Manufacturing Machinery division, shown in the center bar chart, accounted for JPY 278.3 billion, a year-on-year increase of 49% from JPY 186.9 billion. In the Sheet-metal Fabrication Machinery Division, machine sales totaled JPY 204.7 billion, a significant increase of 64% from JPY 125 billion in the prior year.

Orders received by region are displayed on the right. Orders received in Japan totaled 152.9 billion yen, up 41% from 108.7 billion yen a year earlier, while overseas orders totaled 222 billion yen, up up 52% ​​from 146.4 billion yen the previous year, with records in Japan, North America and Europe.

Next comes the results by segment.

As shown in the bar chart on the left, Metalworking Machinery segment revenue was JPY 255.8 billion, up 26% from a year earlier, and profit was operating was JPY 31.1 billion, up only 45% from the prior year, due to the impact of special factors in the prior year, as previously noted.

On the other hand, in the metalworking machine tool segment shown on the right, revenue was JPY 55.5 billion, up 20% from the prior year, and profit operating income was JPY 6.6 billion, a substantial increase of 85% over the prior year. fiscal year.

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Amada Co.Ltd. published this content on May 28, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on May 28, 2022 05:25:05 UTC.

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2022 sales 313B
2,466 million
2,466 million
Net income 2022 28,622 million
225 million
225 million
Net cash 2022 49,027M
386M
386M
PER 2022 ratio 12.4x
2022 return 3.92%
Capitalization 356B
2,801M
2,801M
EV / Sales 2022 0.98x
EV / Sales 2023 0.83x
# of employees 8,906
Floating 92.4%

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