explanatory material of group company for the …copyright @ 2005 makino milling machine co.,ltd....

Copyright @ 2005 Makino Milling Machine Co.,Ltd. All Rights Reserved

Makino Milling Machine Co.,Ltd

2020.1.31

-1--1--1--1-

Explanatory Material of Group Companyfor the Third Quarter of

the Fiscal Year Ending March 31, 2020

Makino Milling Machine Co., LtdJanuary 31, 2020


Copyright @ 2005 Makino Milling Machine Co.,Ltd. All Rights Reserved2020.1.31

-2-Consolidated Order by destination

FY2018 Actual 2,020

FY2019 Plan (Apr. 2019) 1,790

FY2019 Plan (Juｌ. 2019) 1,680

FY2019 Plan (Oct. 2019) 1,630

FY2019 Plan (Jan. 2020) 1,470



2020.1.31

0

100

200

300

400

500

600

700

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

（億円）

（FY）

Others

Die & Mold

Aerospace

Production Machinery

-3-Order by industryConsolidated

(100 mil yen)FY2018 Actual 2,020

FY2019 Plan (Apr. 2019) 1,790

FY2019 Plan (Juｌ. 2019) 1,680

FY2019 Plan (Oct. 2019) 1,630

FY2019 Plan (Jan. 2020) 1,470



2020.1.31

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019（年）

(億円)

他ヨーロッパ北米アジア日本

Monthly order of Makino -4-Non-Consolidated

(100 mil yen)

(Year)



2020.1.31

0

500

1,000

1,500

2,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019（年）

（億円）

他ヨーロッパ北米アジア日本

-5-Monthly order of JMTBA

Source: Japan Machine Tool Builders’ Association

(100 mil yen)

(Year)



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0

400

800

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2,400

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20

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120

日工会牧野フライス製作所

-6-JMTBA・Makino (non-consolidated) Order

Source : Japan Machine Tool Builders’ Association

Non-Consolidated

Makino JMTBA

(Year)

（100 mil yen）



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20

30

40

50日工会

牧野フライス製作所

-7-JMTBA・Makino (non-consolidated) Domestic OrderNon-Consolidated


Makino JMTBA

(Year)

（100 mil yen）



2020.1.31

-8-JMTBA・Makino (non-consolidated) Overseas Order


Non-Consolidated

0

400

800

1,200

1,600

0

20

40

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80

日工会牧野フライス製作所Makino JMTBA

(Year)

（100 mil yen）



2020.1.31

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50

100

150

200

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300

1Q

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1Q

2Q

3Q

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1Q

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3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

（億円）

（FY）

海外

国内

-9-Quarterly order of Makino Non-Consolidated

FY2018 Actual 1,074

FY2019 Plan (Apr. 2019) 960

FY2019 Plan (Jul. 2019) 839

FY2019 Plan (Oct. 2019) 796

FY2019 Plan (Jan. 2020) 725

(100 mil yen)



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20

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4Q

1Q

2Q

3Q

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1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

（億円）

（FY）

Others

Die & Mold

Aerospace


-10-Domestic OrderNon-Consolidated

FY2018 Actual 383

FY2019 Plan (Apr. 2019) 380

FY2019 Plan (Jul. 2019) 329

FY2019 Plan (Oct. 2019) 285

FY2019 Plan (Jan. 2020) 258

(100 mil yen)



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2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(百万シンガポールドル)

（FY）

Others

Die & Mold

Aerospace


-11-Asian subsidiary Order by industryFY2018 Actual 846

FY2019 Plan (Apr. 2019) 815

FY2019 Plan (Jul. 2019) 723

FY2019 Plan (Oct. 2019) 716

FY2019 Plan (Jan. 2020) 626

(mil S$)



2020.1.31

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50

100

150

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300

1Q

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3Q

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3Q

4Q

1Q

2Q

3Q

4Q

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(百万シンガポールドル)

(FY）

Others

India

China

-12-Asian subsidiary Order by areaChina / India / Others

FY2018 Actual 519 / 147 / 180

FY2019 Plan (Apr. 2019) 481 / 147 / 187

FY2019 Plan (Jul. 2019) 417 / 127 / 179

FY2019 Plan (Oct. 2019) 433 / 119 / 164

FY2019 Plan (Jan. 2020) 388 / 103 / 135

(mil S$)



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0

30

60

90

120

150

180

１Ｑ

２Ｑ

３Ｑ

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１Ｑ

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３Ｑ

４Ｑ

１Ｑ

２Ｑ

３Ｑ

４Ｑ

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

（百万USドル)

（FY）

Others

Die & Mold

Aerospace


-13-US subsidiary OrderFY2018 Actual 508

FY2019 Plan (Apr. 2019) 451

FY2019 Plan (Jul. 2019) 468

FY2019 Plan (Oct. 2019) 477

FY2019 Plan (Jan. 2020) 473

(mil US$)



2020.1.31

-10

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60

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２Ｑ

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１Ｑ

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４Ｑ

１Ｑ

２Ｑ

３Ｑ

４Ｑ

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

（百万ユーロ）

（FY）

Others

Die & Mold

Aerospace


-14-Europe subsidiary OrderFY2018 Actual 160

FY2019 Plan (Apr. 2019) 160

FY2019 Plan (Jul. 2019) 148

FY2019 Plan (Oct. 2019) 123

FY2019 Plan (Jan. 2020) 104

(mil €)



-15-Definition for industries shown in explanatory note

Makino categorizes its market to the following industries according to what purpose the customers use Makino products for;

Die & Mold： where Makino products are used to manufacture Die or Mold to shape mainly plastic or die-cast products

Production where Makino products are used to manufacture componentMachinery： parts for automobiles or various kinds of machines or devices

other than aerospace products.

Aerospace： where Makino products are used to manufacture component parts of aerospace products.



-16-Sales and Operating Income -16--16-

Sales / Operating Income

0Exchange rate

0.0%

5.0%

10.0%

15.0%

20.0%

0

200

400

600

800

1Q of FY2017 2Q of FY2017 3Q of FY2017 4Q of FY2017 1Q of FY2018 2Q of FY2018 3Q of FY2018 4Q of FY2018 1Q of FY2019 2Q of FY2019 3Q of FY2019

SalesOperation IncomeOperation Income ratio

USD 111.09 111.06 111.70 110.85 109.07 110.26 111.14 110.91 109.90 108.63 108.67EUR 122.19 126.29 128.53 129.70 130.06 129.85 129.49 128.41 123.49 121.42 121.05SGD 79.79 80.69 81.60 81.74 81.79 81.64 81.80 81.69 80.61 79.34 79.48

20 / 2 Bil. Yen

40 / 4 Bil. Yen

60 / 6 Bil. Yen

80 / 8 Bil. Yen



-17-Consolidated Operating Results

for the Third Quarter of the Fiscal Year Ending March 31, 2020(Comparison with the same period of last year)

3Q YTD of FY2018 3Q YTD of FY2019 Change(Million yen) (From Apr. 1, 2018

to Dec. 31, 2018)(From Apr. 1, 2019 to Dec. 31, 2019) (%)

-29,750

(-20.6%)

14,476 1,532 -12,943

(10.0%) (1.3%) (-89.4%)

15,407 2,256 -13,150

(10.7%) (2.0%) (-85.4%)

11,987 413 -11,573

(8.3%) (0.4%) (-96.5%)Exchange rate,against USD 111.14 108.67

Exchange rate,against EUR 129.49 121.05

Exchange rate,against SGD 81.80 79.48

Net sales 144,478 114,728

Operating income

Ordinary income

Net incomeattributable to owners of

the parent

-17--17-



-18-Segments -18-

(Million yen)1-３Q

of FY2019Net sales 73,890 40,577 35,813 9,111 -44,665 114,728

(Sales in foreign currency) (498,981) (329,566) (75,274)Operating income/loss -1,140 2,848 921 -1,018 -79 1,532

1-３Qof FY2018Net sales 99,441 52,211 40,464 12,661 -60,300 144,478

(Sales in foreign currency) (616,576) (364,090) (97,783)Operating income/loss 10,467 4,761 1,253 -596 -1,410 14,476

1-３Qof FY2017Net sales 79,698 44,822 37,076 11,808 -51,713 121,691

(Sales in foreign currency) (529,212) (331,925) (91,873)Operating income/loss 4,012 3,949 1,140 -389 -1,117 7,595

Eliminations Consolidated

Eliminations ConsolidatedⅠ(Japan)

Ⅱ(Asia)

Ⅲ(America)

Ⅳ(Europe)

Eliminations Consolidated

Ⅰ(Japan)

Ⅱ(Asia)

Ⅰ(Japan)

Ⅱ(Asia)

Ⅲ(America)

Ⅳ(Europe)

Ⅲ(America)

Ⅳ(Europe)

-18-



-19-Sales amount by Destination -19-

(Million yen)1-3Q

of FY2019Net sales 26,927 41,934 35,464 9,402 998 114,728

Ratio 23.4% 36.5% 30.9% 8.2% 0.8%(Million yen)

1-3Q of FY2018Net sales 34,937 53,675 39,385 13,198 3,281 144,478

Ratio 24.1% 37.1% 27.2% 9.1% 2.2%(Million yen)

1-3Q of FY2017Net sales 26,376 42,227 36,713 13,297 3,076 121,691

Ratio 21.6% 34.7% 30.1% 10.9% 2.5%

Others ConsolidatedJapan Asia America Europe

Japan Asia

Japan Asia America Europe

Consolidated

Consolidated

America Europe Others

Others

-19-



Assets (Million yen)

Cash and time deposits 49,215 45,701 -3,514Notes and accounts receivable 53,402 34,955 -18,447Marketable securities 39 42 2Inventories 63,426 65,139 1,712Other current assets 6,356 8,159 1,802Allowance for doubtful accounts -775 -846 -70

Total 171,665 153,151 -18,513Property, plant and equipment 65,882 68,568 2,686Intangible assets 3,838 4,469 630Investments and other assets 28,135 29,778 1,643

Total 97,855 102,816 4,960269,521 255,967 -13,553Total assets

End of FY2018(As of Mar. 31, 2019)

End of Q3/ FY2019(As of Dec. 31, 2019)

Change

Current assets

Item

Noncurrentassets

Consolidated Balance Sheets -20--20-



Liabilities and net assets （Million yen）End of FY2018 End of Q3/ FY2019

(As of Mar. 31, 2019) (As of Dec. 31, 2019)

Notes and accounts payable 33,274 24,050 -9,223Short-term loans from banks 3,364 4,013 649Current portion of long-term debt 7,725 7,645 -80Other current liabilities 29,945 23,973 -5,972

Total 74,309 59,683 -14,626Bonds payable 10,000 10,000 -Long-term loans payable 13,872 13,862 -10Other noncurrent liabilities 10,392 14,019 3,627

Total 34,265 37,882 3,617108,574 97,565 -11,009

Common stock 21,142 21,142 -Capital surplus 37,070 37,070 -Retained earnings 95,782 93,007 -2,775Treasury stock -2,009 -2,010 -1

Total 151,986 149,210 -2,7768,128 8,371 242

831 820 -10160,946 158,402 -2,544269,521 255,967 -13,553

Currentliabilities

Total liabilities and net assets

ChangeItem

Noncurrentliabilities

Valuation and translation adjustmentsNon-controlling interests

Total net assets

Total liabilities

Shareholders'equity

Consolidated Balance Sheets -21--21-



-22-Consolidated Statements of Cash Flow -22-

（Million yen） 3Q YTD of FY2018 3Q YTD of FY2019

(From Apr. 1, 2018to Dec. 31, 2018)

(From Apr. 1, 2019to Dec. 31, 2019)

I. Cash flows from operating activities:Income (loss) before income taxes 15,782 2,277Depreciation and amortization 4,298 4,649(Increase) decrease in notes and accounts receivable, trade 6,199 16,911(Increase) decrease in inventories -9,867 -2,105Increase (decrease) in notes and accounts payable, trade -1,453 -8,647Other, net -5,166 -7,010Cash flows from operating activities 9,792 6,076II. Cash flows from investing activities:Purchase of property, plant and equipment -6,497 -5,572Proceeds from sales of property, plant and equipment 537 255Other, net -923 -735Cash flows from investing activities -6,883 -6,052III. Cash flows from financing activities:Increase (decrease) in short-term loans payable, net 2,907 689Repayment of finance-lease obligations -239 -459Proceeds from long-term loans payable 1,000 -Repayment of long-term loans payable -9,336 -60Proceeds from issue of bonds 5,000 -Payment for purchases of treasury stock -2,003 -1Dividends paid by the parent company -2,220 -2,923Dividends paid to minority shareholders -2 -13Cash flows from financing activities -4,894 -2,767IV. Effect of exchange rate changes on cash and cash equivalents -307 -768V. Net increase (decrease) in cash and cash equivalents -2,292 -3,513VI. Cash and cash equivalents, beginning of period 49,785 48,827VII. Cash and cash equivalents, end of period 47,492 45,314

Item



-23--23-Capital Investment (Forecast)

54 52 39 3615 25

7081

0

40

80

120

FY2015 FY2016 FY2017 FY2018 FY2019 1-3Q FY2019 Plan

Consolidated

Non-Consolidated86

94

58

80

Capital investment (100 million yen)



-24--24-Depreciation (Forecast)

37 37 37 3929

43

5159

51 48

66

0

30

60

90

FY2015 FY2016 FY2017 FY2018 FY2019 1-3Q FY2019 Plan

ConsolidatedNon-consolidated

49

Depreciation and amortization(100 million yen)



-25-Employees

1,507 1,485 1,501 1,466 1,476

4,8124,455 4,593

0

2,000

4,000

6,000

End of FY2015 End of FY2016 End of FY2017 End of FY2018 End of 3Q FY2019

ConsolidatedNon-consolidated

4,8054,731

-25--25-

Number of employees(Persons)



-26-Forecast of Consolidated Operating Results -26-

3Q YTD of FY2019 4Q of FY2019 FY2019(Actual) (Forecast) (Forecast)

(Million yen) (From Apr. 1, 2019to Dec. 31, 2019)

(From Jan. 1, 2020to Mar. 31, 2020)

(From Apr. 1, 2019to Mar 31, 2020)

(as of Jan. 31, 2020)

1,532 1,968 3,500(1.3%) (4.1%) (2.1%)2,256 2,044 4,300

(2.0%) (4.2%) (2.6%)413 1,187 1,600

(0.4%) (2.5%) (1.0%)Exchange rate,against USD 108.67 105.00 107.75

Exchange rate,against EUR 121.05 120.00 120.80

Exchange rate,against SGD 79.48 77.00 78.90

Net income attributable toowners of the parent

Net sales 114,728 163,000

Operating income

Ordinary income

48,272



2020.1.31

-27--27-

Reference Materials



-28-The Influences on Sales and Operating income increase by exchange rate fluctuations -28-

(Million yen)

External salesExchange

rate(same period of

last year)

USD USD 327M 108.67 (111.14) -808 -142

EUR EUR 74M 121.05 (129.49) -625 -192

SGD SGD 448M 79.48 (81.80) -1,039 -82

Total -2,472 -416

The influence ofexchange ratefluctuations in

Sales

The influence ofexchange ratefluctuations in

Operatingincome

The YTD Q3 of FY2019

-28-

Comparison with the same period of last year



-29-Net Sales and Operating Income (by Segment)

756671

796

994

738

60

14

40

104

-11

-50

0

50

100

150

0

300

600

900

1,200

1-3Q ofFY2015

1-3Q ofFY2016

1-3Q ofFY2017

1-3Q ofFY2018

1-3Q ofFY2019

Net SalesOperating income

(100 million yen)

Japan




379

321

448

522

405

22 19

39 47

28

0

20

40

60

80

0

150

300

450

600

1-3Q of FY2015 1-3Q of FY2016 1-3Q of FY2017 1-3Q of FY2018 1-3Q of FY2019

Net sales

Operating income

Asia (100 million yen)




318 315370

404358

9 9

11 12

9

0

5

10

15

20

0

150

300

450

600


Net sales

Operating income

(100 million yen)

America




99

75

118126

91

-0

-5

-3

-5

-10-12

-8

-4

0

4

0

40

80

120

160


Net salesOperating income

(100 million yen)

Europe



-33--33-Changes in Major Items in Consolidated Balance Sheets

2,342 2,4762,683 2,695 2,559

0

1,000

2,000

3,000

4,000

End ofFY2015

End ofFY2016

End ofFY2017

End ofFY2018

End of3Q FY2019

Total assets(100 million yen)

*for ReferenceNet Sales(100 million yen) 1,619 1,536 1,815 2,047 1,147




533 517 502 492457

0

250

500

750

End ofFY2015

End ofFY2016

End ofFY2017

End ofFY2018

End of3Q FY2019

Cash and time deposits + securities(100 million yen)





386445

511 534

349

0.0

2.0

4.0

6.0

8.0

0

150

300

450

600

750

End ofFY2015

End ofFY2016

End ofFY2017

End ofFY2018

End of3Q FY2019

Notes and accounts receivable, trade Turnover of accounts receivable(100 million yen) (month)





513 520591 634 651

0.0

2.0

4.0

6.0

8.0

0

300

600

900

End ofFY2015

End ofFY2016

End ofFY2017

End ofFY2018

End of3Q FY2019*for Reference

Net Sales(100 million yen) 1,619 1,536 1,815 2,047 1,147

Inventories Inventory turnover(month)(100 million yen)




243

302354 332

240

0

100

200

300

400

500

End ofFY2015

End ofFY2016

End ofFY2017

End ofFY2018

End of3Q FY2019*for Reference

Net Sales(100 million yen) 1,619 1,536 1,815 2,047 1,147

Notes and accounts payable, trade(100 million yen)




580 548

381 349 355

0

200

400

600

800

End ofFY2015

End ofFY2016

End ofFY2017

End ofFY2018

End of3Q FY2019


Interest-bearing debt(100 million yen)



2020.1.31

Note

Forward-looking statements contained in this explanatory material, including results forecasts, are based on information available at the time of disclosure and contain potential risks and uncertainties. Therefore, please note that actual results may materially differ from the forecasts written in this material because of various factors. Significant factors that could have an impact on actual results include, but are not limited to, economic conditions and social developments surrounding the Company, as well as changes in relative competitiveness due to trends in demand for the products and services provided by the Company.

explanatory material of group company for the …copyright @ 2005 makino milling machine co.,ltd....

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