Sodick is a machinery manufacturer that supplies electrical discharge machines (EDMs: machine tools that use electric sparks to machine metals; see box below). In FY12/20, it reported revenue of JPY58.0bn and operating profit before consolidation adjustments of JPY3.9bn. It has four segments: Machine Tool (EDMs and other machinery; 65.5% of total revenue and 74.7% of total profit in FY12/20), Industrial Machinery (injection molding machines and other machinery; 18.8% and 15.4%), Food Machinery (noodle-making machines and sterile-packed cooked-rice production systems; 6.2% and 1.7%), and Other (precision die and mold operations, sales of products manufactured with in-house technology; 9.5% and 8.2%). Overseas operations generate 66.0% of total revenue (value basis), with Asia accounting for 47.3% (Greater China: 37.4%), the Americas 11.2%, and Europe 7.5%.

EDMs have been the core product since the company’s founding in 1976. In FY12/20, they brought in JPY38.0bn or roughly 95% of the revenue generated in the Machine Tool segment (after including repairs, maintenance, and consumables). Sodick has captured a global market share in high-end EDMs of roughly 30%, which puts it in the same league as Mitsubishi Electric (TSE1: 6503) and Switzerland-based GF Machining Solutions (formerly Agie Charmilles). It has pioneered EDMs equipped with numerical control units (NC units) since its early days, and established itself as a leader in the EDM field. Examples of its achievements include the development of the world’s first linear servo motor drive high-speed NC die-sinker EDM in 1998, and the world’s first linear servo motor drive high-speed wire-cut EDM in 1999.

In the 10 years from FY03/12 to FY12/20 (during which the company changed its accounting period), OPM averaged 8.0%. Compared with its rivals, this was below Okuma Corporation (TSE1: 6103; 9.1%), but ahead of DMG Mori Seiki (TSE1: 6141; 5.9%) and Makino Milling Machine (TSE1: 6135: 5.6%). Over the same period, OPM in the company’s Machine Tool segment averaged 13.1%. Shared Research understands the strong segment OPM is attributable to the company’s sizable market share in high-end EDMs (roughly 30%), integrated production achieved through in-house manufacturing of NC units and linear motors, and the use of internally developed ceramics.

* Electrical discharge machine (EDMs): A machine tool to machine metals and other materials through electrical discharge machining.
* Electrical discharge machining: A technology that uses electrical discharges (or sparks) to machine metals and other materials. It involves generating an arc discharge between an electrode and a workpiece (typically a metal) to remove materials from the surface of the workpiece. The electrode does not make physical contact with the workpiece. Instead, the electric energy (discharge) generated in the narrow gap between the electrode and the workpiece performs the function of a conventional cutting tool.
* Non-EDM machining: Conventional machining technologies include cutting (application of cutting tools), grinding (removal of surface materials by applying a grinding stone rotating at a high speed), and polishing (smoothening of surfaces by applying a hard grindstone with high precision).
* Benefits of electrical discharge machining: It is effective in settings that are problematic for conventional machining approaches, such as the machining of ultra-hard metals, locations that require high precision, and intricate shapes. In addition, EDMs equipped with a numerical control unit (NC) do not require the presence of an operator and can therefore be operated at night. However, electrical discharge machining also has some drawbacks. The machining process is slow, making it unsuitable for mass production. It also cannot be used to machine non-conductive materials. Finally, it requires additional costs to manufacture electrodes (if using die-sinker EDMs).
* Linear motor: A motor that produces thrust through magnetic attraction and repulsion. Linear motors outperform conventional ball screws in areas such as high-speed drive, high-precision control, and repeated operation under harsh conditions.

The company mainly provides EDMs to large, mid-sized, and small die/mold manufacturers, which supply their products to the automotive, smartphone, IT equipment, electronic parts, and many other industries. Parts machining is also an essential component of the medical equipment, aerospace, energy, and other industries. In Japan, the company sells its products both directly through its sales division and indirectly via agents. Through this collaborative approach, it aims to meet the specific needs of each region. In China, the largest market for the company, Sodick mainly sells its products directly through sales subsidiaries. In other parts of the world, it sells its product directly in the US, via agents in Europe (excluding Germany), and using different strategies for each region in Asia.

Prices for Sodick’s EDMs range from JPY7–8mn at the low end to roughly JPY60mn at the high end, with the bulk of the orders falling in the JPY10–15mn range. Base models function as platforms that can be upgraded with optional equipment (such as automatic electrode changers), and prices can therefore diverge by as much as several million yen depending on variations in specifications. While selling prices have generally trended down over the last 10 years, Sodick says they turn up in some years due to orders for optional equipment. The lead time between orders and revenue recognition is roughly three months. The company maintains production plans extending four months out, and reviews these plans each month. Based on an analysis of historical order and customer trends, it also produces a certain quantity of EDMs using a make-to-stock approach. It says the EDM replacement cycle is about 10 years, although this varies by customer.

Sodick manufactures EDMs in Japan, Thailand, and China (two production sites), and sells them around the world. In FY12/20, it sold 2,706 EDMs, with Asia accounting for 71.6% (China: 63.2%), Japan for 9.3%, the Americas for 8.8%, and Europe for 10.3%. It sells a large number of EDMs in China because it can take advantage of local production, and because the country is home to many smartphone and IT companies with micromachining needs. Sodick has annual production capacity for some 4,000 EDMs, but it can ramp up production to 5,000 units by adjusting manpower in its assembly processes. By region, it produces about 50% of its EDMs in Thailand, just over 40% in China (two production sites), and under 5% in Japan.

Materials costs (including parts procurement costs) make up some 75% of the company’s manufacturing costs, labor costs about 10%, and outsourcing and other costs roughly 15% (averages estimated by Shared Research, non-consolidated basis). Labor costs are expanding in tandem with an increase in personnel costs overseas. After excluding the procurement of parts, stainless steel and castings are the main component of material costs. Such costs fluctuate based on price negotiations with suppliers, and related impact takes roughly six months to be reflected in operations. Thereafter, these price swings also start showing up partially in the pricing of end products.

The global market for high-end EDMs, in which Sodick controls a high share, is worth around JPY150.0bn. Over the medium term, the company sees the market transitioning from mid-range and low-end models to high-end models (its forte), spurred by trends such as miniaturization, increasing complexity, and integrated production.

In the Industrial Machinery segment (revenue of JPY10.9bn in FY12/20), the second largest business after the Machine Tool segment, the company mainly supplies injection molding machines—a type of equipment that handles all processes involved in injection molding, from melting the plastic resin materials (pellets) to injecting the molten plastic into a mold, cooling, and removing the solidified material. Sodick produces and sells injection molding machines equipped with its proprietary V-LINE® System, which supports improved precision and yields through stable filling volume achieved by separating the processes of plasticization (melting of pellets) and injection of the molten plastic into a mold. The company supplies these machines to the automotive, smartphone, IT equipment, electronic parts, connector, and medical instruments industries.

In the Food Machinery segment (revenue of JPY3.6bn in FY12/20), which was launched in 2007, the company develops, manufactures, and sells noodle-making machines, noodle-making plants, sterile-packed cooked-rice (instant rice) production systems, and production lines. It supplies integrated production lines for sterile-packed cooked-rice that handle all processes from washing, sterilizing, and cooking the rice, inserting it into containers, and packaging the containers. It sells food machinery to major noodle manufacturers, manufacturers that supply noodles to convenience stores and supermarkets, restaurant chains, and confectionary manufacturers. In the Other segment (revenue of JPY5.5bn in FY12/20), the company undertakes contracted development of products such as precision dies and molds and automotive plastic connectors, and also develops, manufactures, and sells ceramic products, linear motors, motor drivers, and LED lighting.

Earnings trends

In FY12/20, revenue was JPY58.0bn (-14.1% YoY), operating profit JPY1.9bn (-45.9% YoY), recurring profit JPY2.0bn (-42.5% YoY), and net income attributable to owners of the parent JPY1.3bn (-32.7% YoY). Operating profit was dealt a heavy blow by a decline in EDM unit sales attributable to the COVID-19 pandemic, and fell to a 10-year low as a result.

In FY12/21, Sodick forecasts revenue of JPY71.8bn (+23.7% YoY), operating profit of JPY6.1bn (increase of roughly 2.3x YoY), recurring profit of JPY7.0bn (increase of roughly 2.5x YoY), and net income attributable to owners of the parent of JPY4.9bn (increase of roughly 2.7x YoY). It targets EPS of JPY93.3. The company upwardly revised its forecast when it released Q2 results and left this forecast unchanged at the time of Q3 results. It now looks for segment profit in the core Machine Tool segment to increase 2.3x YoY, driving a recovery in overall earnings. This outlook is predicated on a continued recovery in demand for 5G applications and semiconductors in Greater China, and expectations that global capital investment will bottom out. However, lengthening lead times for EDMs remain a concern.

The company every year releases a medium-term management plan for the following three years. The latest iteration of the rolling plan covers the period from FY12/21 to FY12/23. It calls for FY12/23 revenue of JPY75.0bn (versus JPY58.0bn recorded in FY12/20), operating profit of JPY7.6bn (JPY1.9bn), and an OPM of 10.1% (3.2%). It anticipates an earnings recovery in the core Machine Tool segment (FY12/23 targets: segment profit of JPY7.6bn, OPM of 15.6%) aided by an optimized production structure. However, the company plans to review these targets in February 2022 as earnings have outpaced its initial outlook in FY12/21.

Strengths and weaknesses

Shared Research sees Sodick’s strengths as: 1) its reputation as a pioneer in EDMs and global market share in high-end EDMs of roughly 30% that ranks it among the leaders in the field; 2) its ability to generate higher margins on EDMs than its rivals by manufacturing NC units and linear motors in-house (whereas rivals source a high share of their parts and materials externally) and sell its products at a premium; 3) the potential to benefit from the many advantages offered by EDMs over conventional machine tools, such as superior micromachining capabilities and support for unmanned operation.

We see its weaknesses as: 1) low labor efficiency—an area with much room for improvement; 2) limited potential for growth through market share gains in a stagnant EDM market; and 3) insufficient risk diversification attributable to a concentration of sales and production in specific countries.

Key financial data

Income statement		FY03/13	FY03/14	FY03/15	FY03/16	FY03/17	FY12/17	FY12/18	FY12/19	FY12/20	FY12/21
(JPYmn)		Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Est.
Revenue		55,031	56,899	63,090	65,146	61,812	65,604	82,716	67,591	58,030	71,800
	YoY	2.8%	3.4%	10.9%	3.3%	-5.1%	-	-	-18.3%	-14.1%	23.7%
Gross profit		16,740	16,666	20,876	23,777	22,494	23,159	30,227	22,169	18,250	-
	YoY	-4.8%	-0.4%	25.3%	13.9%	-5.4%	-	-	-26.7%	-17.7%	-
	Gross profit margin	30.4%	29.3%	33.1%	36.5%	36.4%	35.3%	36.5%	32.8%	31.4%	-
SG&A expenses		12,719	14,014	15,984	17,424	17,257	15,669	20,338	18,747	16,397	-
	YoY	5.3%	10.2%	14.1%	9.0%	-1.0%	-	-	-7.8%	-12.5%	-
	SG&A ratio	23.1%	24.6%	25.3%	26.7%	27.9%	23.9%	24.6%	27.7%	28.3%	-
Operating profit		4,021	2,651	4,891	6,353	5,236	7,490	9,888	3,422	1,852	6,100
	YoY	-26.8%	-34.1%	84.5%	29.9%	-17.6%	-	-	-65.4%	-45.9%	229.4%
	Operating profit margin	7.3%	4.7%	7.8%	9.8%	8.5%	11.4%	12.0%	5.1%	3.2%	8.5%
Recurring profit		5,356	3,886	5,647	5,719	4,620	7,910	9,619	3,558	2,046	7,000
	YoY	17.0%	-27.4%	45.3%	1.3%	-19.2%	-	-	-63.0%	-42.5%	242.1%
	Recurring profit margin	9.7%	6.8%	9.0%	8.8%	7.5%	12.1%	11.6%	5.3%	3.5%	9.7%
Net income		4,191	4,194	3,550	4,167	3,644	5,736	6,462	2,002	1,346	4,900
	YoY	26.2%	0.1%	-15.4%	17.4%	-12.6%	-	-	-69.0%	-32.8%	264.0%
	Net margin	7.6%	7.4%	5.6%	6.4%	5.9%	8.7%	7.8%	3.0%	2.3%	6.8%
Per-share data (split-adjusted; JPY)
Shares outstanding (ex. treasury shares; year-end; '000)		53,433	53,433	53,433	53,433	53,437	53,441	53,451	53,451	53,363	-
EPS (JPY)		83.3	83.4	70.6	82.8	76.9	122.2	137.6	42.6	28.6	93.3
EPS (fully diluted; JPY)		-	-	-	-	66.1	104.9	118.1	36.6	24.6	-
Dividend per share (JPY)		14	14	20	18	19	22	24	25	25	26
Book value per share (JPY)		715.3	842.4	981.5	987.0	1,035.2	1,172.1	1,235.5	1,247.1	1,230.5	-
Balance sheet (JPYmn)
	Cash and cash equivalent	25,533	24,049	27,767	27,663	36,847	37,014	33,546	33,873	38,920	-
Total current assets		62,688	64,557	71,362	67,846	78,136	87,527	79,946	75,290	77,954	-
Tangible fixed assets		23,458	24,450	24,828	24,336	23,768	26,296	30,912	31,856	30,358	-
Intangible assets		3,583	4,346	3,707	3,463	3,187	2,895	2,544	2,411	2,228	-
Investments and other assets		5,310	5,421	4,268	4,075	4,179	5,096	5,679	5,088	5,575	-
Total assets		95,041	98,776	104,167	99,722	109,271	121,815	119,082	114,647	116,117	-
	Short-term debt	15,635	14,808	16,977	15,086	14,784	13,199	11,883	11,592	17,583	-
Current liabilities		30,919	29,779	34,537	29,656	33,009	36,349	31,804	27,092	32,146	-
	Long-term debt	25,870	24,672	18,779	18,740	26,168	28,503	27,640	27,044	23,801	-
Fixed liabilities		28,088	26,544	20,176	20,306	27,551	30,298	29,148	28,810	25,993	-
Total liabilities		59,007	56,324	54,713	49,963	60,560	66,648	60,953	55,902	58,140	-
	Shareholders' equity	35,991	42,388	49,386	49,664	48,613	55,047	58,033	58,666	57,899	-
Total net assets		36,033	42,451	49,453	49,758	48,710	55,166	58,129	58,745	57,976	-
Total interest-bearing debt		41,505	39,480	35,756	33,826	40,952	41,702	39,523	38,636	41,384	-
Cash flow statement (JPYmn)
Cash flows from operating activities		2,766	5,577	8,298	6,579	8,373	4,522	9,275	8,336	5,270	-
Cash flows from investing activities		-4,776	-4,181	-144	-2,773	-2,132	-4,715	-8,188	-5,609	-1,410	-
Cash flows from financing activities		-1,163	-3,696	-5,243	-2,854	3,134	-439	-3,485	-2,228	1,665	-
Financial ratio
ROA (RP-based)		5.7%	4.0%	5.6%	5.6%	4.4%	6.8%	8.0%	3.0%	1.8%
ROE		12.8%	10.7%	7.7%	8.4%	7.4%	11.1%	11.4%	3.4%	2.3%
Equity ratio		37.9%	42.9%	47.4%	49.8%	44.5%	45.2%	48.7%	51.2%	49.9%
Capex		5,460	3,179	2,232	2,887	2,594	4,588	8,576	6,561	2,448	3,100
Depreciation		2,204	2,559	2,659	2,765	2,697	2,360	3,085	3,664	3,399	3,500
R&D expenses		1,832	2,004	2,494	3,408	3,518	3,344	3,902	3,483	3,220	3,600

Source: Shared Research based on company data
Note: In 2017, the company changed its fiscal year-end from March 31 to December 31, eliminating the three-month timing difference in the settling of accounts with its Chinese subsidiaries. The company did not disclose YoY changes for FY12/17 as that year was an irregular nine-month period.

Recent updates

Announcement of share repurchase, and cancellation of treasury stock

2021-11-15

On November 12, 2021, Sodick Co., Ltd. announced a share repurchase and cancellation of treasury stock.

The company announced that it would repurchase and cancel its own shares in order to improve shareholder returns and increase the value of its shares based on a flexible capital allocation policy in response to changes in the business environment. The maximum number of shares to be repurchased is 500,000 shares (JPY500mn), and the cancellation is scheduled for December 28, 2021. The maximum limit of 500,000 shares represents 0.91% of the total number of shares in issue (excluding treasury stock).

Trends and outlook

Quarterly trends and results

Cumulative		FY12/19				FY12/20				FY12/21			FY12/21
(JPYmn)		Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	% of Est.	FY Est.
Revenue		18,828	32,717	49,707	67,591	13,030	26,702	40,744	58,030	14,317	34,504	53,976	75.2%	71,800
	YoY	2.4%	-21.0%	-20.6%	-18.3%	-30.8%	-18.4%	-18.0%	-14.1%	9.9%	29.2%	32.5%		23.7%
Gross profit		6,645	11,331	16,480	22,169	4,073	8,432	12,859	18,250	4,652	11,672	18,572
	YoY	-1.9%	-25.9%	-29.5%	-26.7%	-38.7%	-25.6%	-22.0%	-17.7%	14.2%	38.4%	44.4%
	Gross profit margin	35.3%	34.6%	33.2%	32.8%	31.3%	31.6%	31.6%	31.4%	32.5%	33.8%	34.4%
SG&A expenses		4,552	9,203	13,734	18,747	4,161	8,086	12,032	16,397	4,227	8,957	13,621
	YoY	0.2%	-8.1%	-9.1%	-7.8%	-8.6%	-12.1%	-12.4%	-12.5%	1.6%	10.8%	13.2%
	SG&A ratio	24.2%	28.1%	27.6%	27.7%	31.9%	30.3%	29.5%	28.3%	29.5%	26.0%	25.2%
Operating profit		2,093	2,127	2,746	3,422	-88	345	827	1,852	424	2,714	4,950	81.1%	6,100
	YoY	-6.0%	-59.7%	-66.7%	-65.4%	-	-83.8%	-69.9%	-45.9%	-	686.7%	498.5%		229.4%
	Operating profit margin	11.1%	6.5%	5.5%	5.1%	-	1.3%	2.0%	3.2%	3.0%	7.9%	9.2%		8.5%
Recurring profit		2,168	2,073	2,577	3,558	-67	362	893	2,046	1,176	3,784	6,077	86.8%	7,000
	YoY	11.4%	-60.0%	-68.1%	-63.0%	-	-82.5%	-65.3%	-42.5%	-	945.3%	580.5%		242.1%
	Recurring profit margin	11.5%	6.3%	5.2%	5.3%	-	1.4%	2.2%	3.5%	8.2%	11.0%	11.3%		9.7%
Net income		1,460	892	1,177	2,002	-18	105	619	1,346	871	2,648	4,377	89.3%	4,900
	YoY	10.3%	-75.7%	-79.1%	-69.0%	-	-88.2%	-47.4%	-32.8%	-	2,421.9%	607.1%		264.0%
	Net margin	7.8%	2.7%	2.4%	3.0%	-	0.4%	1.5%	2.3%	6.1%	7.7%	8.1%		6.8%
Quarterly		FY12/19				FY12/20				FY12/21
(JPYmn)		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Revenue		18,828	13,889	16,990	17,884	13,030	13,672	14,042	17,286	14,317	20,187	19,472
	YoY	2.4%	-39.7%	-19.7%	-11.2%	-30.8%	-1.6%	-17.4%	-3.3%	9.9%	47.7%	38.7%
Gross profit		6,645	4,686	5,149	5,689	4,073	4,359	4,427	5,391	4,652	7,020	6,900
	YoY	-1.9%	-45.0%	-36.3%	-17.1%	-38.7%	-7.0%	-14.0%	-5.2%	14.2%	61.0%	55.9%
	Gross profit margin	35.3%	33.7%	30.3%	31.8%	31.3%	31.9%	31.5%	31.2%	32.5%	34.8%	35.4%
SG&A expenses		4,552	4,651	4,531	5,013	4,161	3,925	3,946	4,365	4,227	4,730	4,664
	YoY	0.2%	-14.9%	-11.2%	-4.0%	-8.6%	-15.6%	-12.9%	-12.9%	1.6%	20.5%	18.2%
	SG&A ratio	24.2%	33.5%	26.7%	28.0%	31.9%	28.7%	28.1%	25.3%	29.5%	23.4%	24.0%
Operating profit		2,093	34	619	676	-88	433	482	1,025	424	2,290	2,236
	YoY	-6.0%	-98.9%	-79.2%	-58.7%	-	1,173.5%	-22.1%	51.6%	-	428.9%	363.9%
	Operating profit margin	11.1%	0.2%	3.6%	3.8%	-	3.2%	3.4%	5.9%	3.0%	11.3%	11.5%
Recurring profit		2,168	-95	504	981	-67	429	531	1,153	1,176	2,608	2,293
	YoY	11.4%	-	-82.6%	-35.9%	-	-	5.4%	17.5%	-	507.9%	331.8%
	Recurring profit margin	11.5%	-	3.0%	5.5%	-	3.1%	3.8%	6.7%	8.2%	12.9%	11.8%
Net income		1,460	-568	285	825	-18	123	514	727	871	1,777	1,729
	YoY	10.3%	-	-85.4%	-0.6%	-	-	80.4%	-11.9%	-	1,344.7%	236.4%
	Net margin	7.8%	-	1.7%	4.6%	-	0.9%	3.7%	4.2%	6.1%	8.8%	8.9%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

By application				FY12/19				FY12/20				FY12/21			FY12/21
Cumulative (JPYmn)				Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	% of Est.	FY Est.
Revenue				18,828	32,717	49,707	67,591	13,030	26,702	40,744	58,030	14,317	34,504	53,976	75.2%	71,800
	YoY			2.4%	-21.0%	-20.6%	-18.3%	-30.8%	-18.4%	-18.0%	-14.1%	9.9%	29.2%	32.5%		23.7%
	Machine Tool			13,362	23,444	34,498	45,797	8,237	17,063	26,317	38,024	10,382	24,145	37,248	76.6%	48,600
		YoY		0.0%	-21.8%	-23.5%	-21.9%	-38.4%	-27.2%	-23.7%	-17.0%	26.0%	41.5%	41.5%		27.8%
		% of total		71.0%	71.7%	69.4%	67.8%	63.2%	63.9%	64.6%	65.5%	72.5%	70.0%	69.0%		67.7%
		Machine sales		10,767	18,437	27,025	35,889	5,914	12,739	19,923	29,366	8,020	19,200	29,736
			YoY	-0.6%	-25.6%	-27.8%	-25.7%	-45.1%	-30.9%	-26.3%	-18.2%	35.6%	50.7%	49.3%
		Maintenance and supplies		2,594	5,006	7,472	9,907	2,323	4,323	6,394	8,658	2,362	4,945	7,512
			YoY	2.3%	-3.6%	-3.1%	-3.9%	-10.4%	-13.6%	-14.4%	-12.6%	1.7%	14.4%	17.5%
	Industrial Machinery			2,320	4,213	7,242	9,773	2,556	5,316	8,045	10,931	1,893	4,628	6,928	66.0%	10,500
		YoY		-4.3%	-15.4%	-6.4%	-12.4%	10.2%	26.2%	11.1%	11.8%	-25.9%	-12.9%	-13.9%		-3.9%
		% of total		12.3%	12.9%	14.6%	14.5%	19.6%	19.9%	19.7%	18.8%	13.2%	13.4%	12.8%		14.6%
		Machine sales		1,990	3,548	6,223	8,445	2,246	4,745	7,209	9,782	1,546	3,899	5,856
			YoY	-5.6%	-18.5%	-8.4%	-14.3%	12.9%	33.7%	15.8%	15.8%	-31.2%	-17.8%	-18.8%
		Maintenance and supplies		329	665	1,019	1,328	310	570	836	1,148	347	728	1,072
			YoY	4.4%	5.7%	7.8%	2.2%	-5.8%	-14.3%	-18.0%	-13.6%	11.9%	27.7%	28.2%
	Food Machinery			1,776	2,344	3,470	6,283	782	1,515	2,223	3,585	580	2,521	5,063	77.9%	6,500
		YoY		76.7%	-25.6%	-29.7%	-4.2%	-56.0%	-35.4%	-35.9%	-42.9%	-25.8%	66.4%	127.8%		81.3%
		% of total		9.4%	7.2%	7.0%	9.3%	6.0%	5.7%	5.5%	6.2%	4.1%	7.3%	9.4%		9.1%
		Machine sales		1,637	1,995	2,966	5,632	653	1,219	1,751	2,911	418	2,178	4,544
			YoY	85.8%	-31.6%	-35.1%	-6.7%	-60.1%	-38.9%	-41.0%	-48.3%	-36.0%	78.7%	159.5%
		Maintenance and supplies		138	348	503	650	128	296	471	674	161	342	519
			YoY	12.2%	48.7%	39.7%	24.0%	-7.2%	-14.9%	-6.4%	3.7%	25.8%	15.5%	10.2%
	Other			1,369	2,715	4,496	5,737	1,453	2,807	4,158	5,488	1,460	3,209	4,735	76.4%	6,200
		YoY		-13.8%	-17.8%	-6.1%	-10.2%	6.1%	3.4%	-7.5%	-4.3%	0.5%	14.3%	13.9%		13.0%
		% of total		7.3%	8.3%	9.0%	8.5%	11.2%	10.5%	10.2%	9.5%	10.2%	9.3%	8.8%		8.6%
Operating profit				2,093	2,127	2,746	3,422	-88	345	827	1,852	424	2,714	4,950	81.1%	6,100
	YoY			-6.0%	-59.7%	-66.7%	-65.4%	-	-83.8%	-69.9%	-45.9%	-	686.7%	498.5%		229.4%
	Operating profit margin			11.1%	6.5%	5.5%	5.1%	-0.7%	1.3%	2.0%	3.2%	3.0%	7.9%	9.2%		8.5%
	Machine Tool			2,191	2,862	3,564	4,621	197	941	1,675	2,896	898	3,156	5,260	77.4%	6,800
		YoY		-7.2%	-44.7%	-55.6%	-53.7%	-91.0%	-67.1%	-53.0%	-37.3%	355.8%	235.4%	214.0%		134.8%
		Operating profit margin		16.4%	12.2%	10.3%	10.1%	2.4%	5.5%	6.4%	7.6%	8.6%	13.1%	14.1%		14.0%
		% of total		84.3%	89.0%	81.2%	80.7%	46.4%	65.3%	70.2%	74.7%	88.7%	79.6%	77.5%		79.1%
	Industrial Machinery			80	-3	218	165	142	276	370	596	10	177	274	54.8%	500
		YoY		-45.9%	-	-63.9%	-79.4%	77.5%	-	69.7%	261.2%	-93.0%	-35.9%	-25.9%		-16.1%
		Operating profit margin		3.4%	-0.1%	3.0%	1.7%	5.6%	5.2%	4.6%	5.5%	0.5%	3.8%	4.0%		4.8%
		% of total		3.1%	-0.1%	5.0%	2.9%	33.4%	19.1%	15.5%	15.4%	1.0%	4.5%	4.0%		5.8%
	Food Machinery			336	293	369	625	25	5	27	65	-39	205	566	94.3%	600
		YoY		394.1%	-30.9%	-40.3%	-7.3%	-92.6%	-98.3%	-92.7%	-89.6%	-	4,000.0%	1,996.3%		823.1%
		Operating profit margin		18.9%	12.5%	10.6%	9.9%	3.2%	0.3%	1.2%	1.8%	-6.7%	8.1%	11.2%		9.2%
		% of total		12.9%	9.1%	8.4%	10.9%	5.9%	0.3%	1.1%	1.7%	-3.9%	5.2%	8.3%		7.0%
	Other			-7	64	236	311	60	219	312	319	144	426	688	98.3%	700
		YoY		-	-90.8%	-74.7%	-69.8%	-	242.2%	32.2%	2.6%	140.0%	94.5%	120.5%		119.4%
		Operating profit margin		-0.5%	2.4%	5.2%	5.4%	4.1%	7.8%	7.5%	5.8%	9.9%	13.3%	14.5%		11.3%
		% of total		-0.3%	2.0%	5.4%	5.4%	14.1%	15.2%	13.1%	8.2%	14.2%	10.7%	10.1%		8.1%
	Adjustments			-507	-1,089	-1,643	-2,301	-513	-1,097	-1,558	-2,025	-588	-1,251	-1,839		-2,500
By application				FY12/19				FY12/20				FY12/21
Quarterly (JPYmn)				Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Revenue				18,828	13,889	16,990	17,884	13,030	13,672	14,042	17,286	14,317	20,187	19,472
	YoY			2.4%	-39.7%	-19.7%	-11.2%	-30.8%	-1.6%	-17.4%	-3.3%	9.9%	47.7%	38.7%
	Machine Tool			13,362	10,082	11,054	11,299	8,237	8,826	9,254	11,707	10,382	13,763	13,103
		YoY		0.0%	-39.3%	-27.0%	-16.2%	-38.4%	-12.5%	-16.3%	3.6%	26.0%	55.9%	41.6%
		% of total		71.0%	72.6%	65.1%	63.2%	63.2%	64.6%	65.9%	67.7%	72.5%	68.2%	67.3%
		Machine sales		10,767	7,670	8,588	8,864	5,914	6,825	7,184	9,443	8,020	11,180	10,536
			YoY	-0.6%	-45.0%	-31.9%	-18.6%	-45.1%	-11.0%	-16.3%	6.5%	35.6%	63.8%	46.7%
		Maintenance and supplies		2,594	2,412	2,466	2,435	2,323	2,000	2,071	2,264	2,362	2,583	2,567
			YoY	2.3%	-9.2%	-2.0%	-6.2%	-10.4%	-17.1%	-16.0%	-7.0%	1.7%	29.2%	23.9%
	Industrial Machinery			2,320	1,893	3,029	2,531	2,556	2,760	2,729	2,886	1,893	2,735	2,300
		YoY		-4.3%	-26.0%	9.9%	-26.0%	10.2%	45.8%	-9.9%	14.0%	-25.9%	-0.9%	-15.7%
		% of total		12.3%	13.6%	17.8%	14.2%	19.6%	20.2%	19.4%	16.7%	13.2%	13.5%	11.8%
		Machine sales		1,990	1,558	2,675	2,222	2,246	2,499	2,464	2,573	1,546	2,353	1,957
			YoY	-5.6%	-30.5%	9.7%	-27.5%	12.9%	60.4%	-7.9%	15.8%	-31.2%	-5.8%	-20.6%
		Maintenance and supplies		329	336	354	309	310	260	266	312	347	381	344
			YoY	4.4%	7.0%	12.0%	-13.0%	-5.8%	-22.6%	-24.9%	1.0%	11.9%	46.5%	29.3%
	Food Machinery			1,776	568	1,126	2,813	782	733	708	1,362	580	1,941	2,542
		YoY		76.7%	-73.5%	-36.8%	73.0%	-56.0%	29.0%	-37.1%	-51.6%	-25.8%	164.8%	259.0%
		% of total		9.4%	4.1%	6.6%	15.7%	6.0%	5.4%	5.0%	7.9%	4.1%	9.6%	13.1%
		Machine sales		1,637	358	971	2,666	653	566	532	1,160	418	1,760	2,366
			YoY	85.8%	-82.4%	-41.4%	82.4%	-60.1%	58.1%	-45.2%	-56.5%	-36.0%	211.0%	344.7%
		Maintenance and supplies		138	210	155	147	128	168	175	203	161	181	177
			YoY	12.2%	89.2%	23.0%	-10.4%	-7.2%	-20.0%	12.9%	38.1%	25.8%	7.7%	1.1%
	Other			1,369	1,346	1,781	1,241	1,453	1,354	1,351	1,330	1,460	1,749	1,526
		YoY		-13.8%	-21.5%	19.9%	-22.6%	6.1%	0.6%	-24.1%	7.2%	0.5%	29.2%	13.0%
		% of total		7.3%	9.7%	10.5%	6.9%	11.2%	9.9%	9.6%	7.7%	10.2%	8.7%	7.8%
Operating profit				2,093	34	619	676	-88	433	482	1,025	424	2,290	2,236
	YoY			-6.0%	-98.9%	-79.2%	-58.7%	-	1,173.5%	-22.1%	51.6%	-	428.9%	363.9%
	Operating profit margin			11.1%	0.2%	3.6%	3.8%	-0.7%	3.2%	3.4%	5.9%	3.0%	11.3%	11.5%
	Machine Tool			2,191	671	702	1,057	197	744	734	1,221	898	2,258	2,104
		YoY		-7.2%	-76.2%	-75.4%	-45.9%	-91.0%	10.9%	4.6%	15.5%	355.8%	203.5%	186.6%
		Operating profit margin		16.4%	6.7%	6.4%	9.4%	2.4%	8.4%	7.9%	10.4%	8.6%	16.4%	16.1%
		% of total		84.3%	108.9%	59.8%	79.2%	46.4%	73.2%	77.8%	81.8%	88.7%	76.5%	74.5%
	Industrial Machinery			80	-83	221	-53	142	134	94	226	10	167	97
		YoY		-45.9%	-	-26.8%	-	77.5%	-	-57.5%	-	-93.0%	24.6%	3.2%
		Operating profit margin		3.4%	-4.4%	7.3%	-2.1%	5.6%	4.9%	3.4%	7.8%	0.5%	6.1%	4.2%
		% of total		3.1%	-13.5%	18.8%	-4.0%	33.4%	13.2%	10.0%	15.1%	1.0%	5.7%	3.4%
	Food Machinery			336	-43	76	256	25	-20	22	38	-39	244	361
		YoY		394.1%	-	-60.8%	357.1%	-92.6%	-	-71.1%	-85.2%	-	-	1,540.9%
		Operating profit margin		18.9%	-7.6%	6.7%	9.1%	3.2%	-2.7%	3.1%	2.8%	-6.7%	12.6%	14.2%
		% of total		12.9%	-7.0%	6.5%	19.2%	5.9%	-2.0%	2.3%	2.5%	-3.9%	8.3%	12.8%
	Other			-7	71	172	75	60	159	93	7	144	282	262
		YoY		-	-81.7%	-27.1%	-24.2%	-	123.9%	-45.9%	-90.7%	140.0%	77.4%	181.7%
		Operating profit margin		-0.5%	5.3%	9.7%	6.0%	4.1%	11.7%	6.9%	0.5%	9.9%	16.1%	17.2%
		% of total		-0.3%	11.5%	14.7%	5.6%	14.1%	15.6%	9.9%	0.5%	14.2%	9.5%	9.3%
	Adjustments			-507	-582	-554	-658	-513	-584	-461	-467	-588	-663	-588

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Overseas revenue by segment				FY12/19				FY12/20				FY12/21
Cumulative (JPYmn)				Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3
Revenue				18,828	32,717	49,707	67,591	13,030	26,702	40,744	58,030	14,317	34,504	53,976
	YoY			2.4%	-21.0%	-20.6%	-18.3%	-30.8%	-18.4%	-18.0%	-14.1%	9.9%	29.2%	32.5%
	Japan			8,344	13,091	19,995	25,707	5,577	9,965	14,348	19,736	4,659	9,927	15,082
		YoY		17.0%	-3.7%	1.6%	-9.1%	-33.2%	-23.9%	-28.2%	-23.2%	-16.5%	-0.4%	5.1%
		% of total		44.3%	40.0%	40.2%	38.0%	42.8%	37.3%	35.2%	34.0%	32.5%	28.8%	27.9%
		Machine Tool		4,193	6,312	9,408	12,100	2,096	3,614	5,235	7,551	2,141	3,833	5,770
			YoY	23.2%	4.0%	5.3%	-5.6%	-50.0%	-42.7%	-44.4%	-37.6%	2.1%	6.1%	10.2%
		Industrial Machinery		1,218	2,061	3,509	4,693	1,527	2,551	3,417	4,317	882	1,959	2,905
			YoY	0.0%	-12.1%	-4.2%	-14.8%	25.4%	23.8%	-2.6%	-8.0%	-42.2%	-23.2%	-15.0%
		Food Machinery		1,613	2,087	2,699	3,347	536	1,089	1,686	2,634	304	1,303	2,140
			YoY	68.9%	6.1%	11.5%	-9.8%	-66.8%	-47.8%	-37.5%	-21.3%	-43.3%	19.7%	26.9%
		Other		1,318	2,631	4,378	5,566	1,416	2,710	4,009	5,233	1,330	2,829	4,265
			YoY	-15.0%	-18.0%	-5.9%	-10.5%	7.4%	3.0%	-8.4%	-6.0%	-6.1%	4.4%	6.4%
	North and South America			1,792	3,749	5,299	7,162	1,536	2,987	4,631	6,534	1,482	3,449	5,283
		YoY		10.0%	11.6%	-0.8%	-4.5%	-14.3%	-20.3%	-12.6%	-8.8%	-3.5%	15.5%	14.1%
		% of total		9.5%	11.5%	10.7%	10.6%	11.8%	11.2%	11.4%	11.3%	10.4%	10.0%	9.8%
		Machine Tool		1,583	3,370	4,825	6,504	1,451	2,487	3,872	5,626	1,307	3,052	4,549
			YoY	10.2%	12.6%	-0.3%	-2.8%	-8.3%	-26.2%	-19.8%	-13.5%	-9.9%	22.7%	17.5%
		Industrial Machinery		208	368	461	635	80	426	656	804	170	372	694
			YoY	9.5%	2.5%	-6.5%	-19.6%	-61.5%	15.8%	42.3%	26.6%	112.5%	-12.7%	5.8%
		Food Machinery		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
		Other		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
	Europe			1,414	2,770	4,400	5,910	1,156	1,999	3,117	4,336	1,140	2,517	4,044
		YoY		-22.1%	-27.0%	-18.4%	-19.3%	-18.2%	-27.8%	-29.2%	-26.6%	-1.4%	25.9%	29.7%
		% of total		7.5%	8.5%	8.9%	8.7%	8.9%	7.5%	7.7%	7.5%	8.0%	7.3%	7.5%
		Machine Tool		1,414	2,770	4,400	5,910	1,156	1,999	3,117	4,336	1,139	2,517	4,043
			YoY	-21.3%	-26.6%	-17.8%	-18.8%	-18.2%	-27.8%	-29.2%	-26.6%	-1.5%	25.9%	29.7%
		Industrial Machinery		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
		Food Machinery		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
		Other		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
	Greater China			4,975	8,879	13,538	18,450	3,204	8,950	14,701	21,683	5,365	14,797	23,957
		YoY		-14.5%	-42.0%	-43.1%	-37.7%	-35.6%	0.8%	8.6%	17.5%	67.4%	65.3%	63.0%
		% of total		26.4%	27.1%	27.2%	27.3%	24.6%	33.5%	36.1%	37.4%	37.5%	42.9%	44.4%
		Machine Tool		4,398	7,691	11,362	15,421	2,436	7,038	11,314	16,570	4,621	12,231	19,440
			YoY	-14.0%	-43.0%	-45.6%	-39.5%	-44.6%	-8.5%	-0.4%	7.5%	89.7%	73.8%	71.8%
		Industrial Machinery		371	879	1,764	2,567	710	1,794	3,143	4,462	611	1,690	2,422
			YoY	-42.8%	-47.7%	-29.4%	-26.7%	91.4%	104.1%	78.2%	73.8%	-13.9%	-5.8%	-22.9%
		Food Machinery		154	224	292	290	19	19	94	394	3	498	1,624
			YoY	710.5%	833.3%	11.9%	-36.4%	-87.7%	-91.5%	-67.8%	35.9%	-84.2%	2,521.1%	1,627.7%
		Other		50	84	118	170	37	97	148	255	129	377	469
			YoY	35.1%	-11.6%	-13.9%	-2.3%	-26.0%	15.5%	25.4%	50.0%	248.6%	288.7%	216.9%
	Asia			2,301	4,226	6,473	10,360	1,555	2,798	3,946	5,739	1,670	3,812	5,608
		YoY		15.6%	-21.3%	-22.8%	3.5%	-32.4%	-33.8%	-39.0%	-44.6%	7.4%	36.2%	42.1%
		% of total		12.2%	12.9%	13.0%	15.3%	11.9%	10.5%	9.7%	9.9%	11.7%	11.0%	10.4%
		Machine Tool		1,772	3,300	4,501	5,860	1,097	1,923	2,776	3,939	1,172	2,510	3,443
			YoY	9.7%	-9.4%	-11.9%	-7.3%	-38.1%	-41.7%	-38.3%	-32.8%	6.8%	30.5%	24.0%
		Industrial Machinery		521	904	1,506	1,876	237	543	827	1,346	229	604	905
			YoY	50.1%	57.2%	45.1%	43.6%	-54.5%	-39.9%	-45.1%	-28.3%	-3.4%	11.2%	9.4%
		Food Machinery		7	22	465	2,624	220	331	341	453	267	694	1,259
			YoY	-75.0%	-98.1%	-79.3%	10.4%	3,042.9%	1,404.5%	-26.7%	-82.7%	21.4%	109.7%	269.2%
		Other		-	-	-	-	-	-	-	-	1	2	-
			YoY	-	-	-	-	-	-	-	-	-	-	-

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Overseas revenue by segment				FY12/19				FY12/20				FY12/21
Quarterly (JPYmn)				Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Revenue				18,828	13,889	16,990	17,884	13,030	13,672	14,042	17,286	14,317	20,187	19,472
	YoY			2.4%	-39.7%	-19.7%	-11.2%	-30.8%	-1.6%	-17.4%	-3.3%	9.9%	47.7%	38.7%
	Japan			8,344	4,747	6,904	5,712	5,577	4,388	4,383	5,388	4,659	5,268	5,155
		YoY		17.0%	-26.5%	13.5%	-33.5%	-33.2%	-7.6%	-36.5%	-5.7%	-16.5%	20.1%	17.6%
		% of total		44.3%	34.2%	40.6%	31.9%	42.8%	32.1%	31.2%	31.2%	32.5%	26.1%	26.5%
		Machine Tool		4,193	2,119	3,096	2,692	2,096	1,518	1,621	2,316	2,141	1,692	1,937
			YoY	23.2%	-20.5%	7.9%	-30.8%	-50.0%	-28.4%	-47.6%	-14.0%	2.1%	11.5%	19.5%
		Industrial Machinery		1,218	843	1,448	1,184	1,527	1,024	866	900	882	1,077	946
			YoY	0.0%	-25.2%	9.9%	-36.0%	25.4%	21.5%	-40.2%	-24.0%	-42.2%	5.2%	9.2%
		Food Machinery		1,613	474	612	648	536	553	597	948	304	999	837
			YoY	68.9%	-53.2%	35.1%	-49.8%	-66.8%	16.7%	-2.5%	46.3%	-43.3%	80.7%	40.2%
		Other		1,318	1,313	1,747	1,188	1,416	1,294	1,299	1,224	1,330	1,499	1,436
			YoY	-15.0%	-20.8%	21.0%	-24.1%	7.4%	-1.4%	-25.6%	3.0%	-6.1%	15.8%	10.5%
	North and South America			1,792	1,957	1,550	1,863	1,536	1,451	1,644	1,903	1,482	1,967	1,834
		YoY		10.0%	13.2%	-21.9%	-13.5%	-14.3%	-25.9%	6.1%	2.1%	-3.5%	35.6%	11.6%
		% of total		9.5%	14.1%	9.1%	10.4%	11.8%	10.6%	11.7%	11.0%	10.4%	9.7%	9.4%
		Machine Tool		1,583	1,787	1,455	1,679	1,451	1,036	1,385	1,754	1,307	1,745	1,497
			YoY	10.2%	14.7%	-21.2%	-9.3%	-8.3%	-42.0%	-4.8%	4.5%	-9.9%	68.4%	8.1%
		Industrial Machinery		208	160	93	174	80	346	230	148	170	202	322
			YoY	9.5%	-5.3%	-30.6%	-41.4%	-61.5%	116.3%	147.3%	-14.9%	112.5%	-41.6%	40.0%
		Food Machinery		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
		Other		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
	Europe			1,414	1,356	1,630	1,510	1,156	843	1,118	1,219	1,140	1,377	1,527
		YoY		-22.1%	-31.4%	1.7%	-21.8%	-18.2%	-37.8%	-31.4%	-19.3%	-1.4%	63.3%	36.6%
		% of total		7.5%	9.8%	9.6%	8.4%	8.9%	6.2%	8.0%	7.1%	8.0%	6.8%	7.8%
		Machine Tool		1,414	1,356	1,630	1,510	1,156	843	1,118	1,219	1,139	1,378	1,526
			YoY	-21.3%	-31.4%	3.4%	-21.8%	-18.2%	-37.8%	-31.4%	-19.3%	-1.5%	63.5%	36.5%
		Industrial Machinery		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
		Food Machinery		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
		Other		-	-	-	-	-	-	-	-	-	-	-
			YoY	-	-	-	-	-	-	-	-	-	-	-
	Greater China			4,975	3,904	4,659	4,912	3,204	5,746	5,751	6,982	5,365	9,432	9,160
		YoY		-14.5%	-58.8%	-45.0%	-15.9%	-35.6%	47.2%	23.4%	42.1%	67.4%	64.1%	59.3%
		% of total		26.4%	28.1%	27.4%	27.5%	24.6%	42.0%	41.0%	40.4%	37.5%	46.7%	47.0%
		Machine Tool		4,398	3,293	3,671	4,059	2,436	4,602	4,276	5,256	4,621	7,610	7,209
			YoY	-14.0%	-60.8%	-50.2%	-11.9%	-44.6%	39.8%	16.5%	29.5%	89.7%	65.4%	68.6%
		Industrial Machinery		371	508	885	803	710	1,084	1,349	1,319	611	1,079	732
			YoY	-42.8%	-50.8%	8.3%	-20.1%	91.4%	113.4%	52.4%	64.3%	-13.9%	-0.5%	-45.7%
		Food Machinery		154	70	68	-2	19	-	75	300	3	495	1,126
			YoY	710.5%	1,300.0%	-71.3%	-	-87.7%	-	10.3%	-	-84.2%	-	1,401.3%
		Other		50	34	34	52	37	60	51	107	129	248	92
			YoY	35.1%	-41.4%	-19.0%	40.5%	-26.0%	76.5%	50.0%	105.8%	248.6%	313.3%	80.4%
	Asia			2,301	1,925	2,247	3,887	1,555	1,243	1,148	1,793	1,670	2,142	1,796
		YoY		15.6%	-43.1%	-25.5%	140.2%	-32.4%	-35.4%	-48.9%	-53.9%	7.4%	72.3%	56.4%
		% of total		12.2%	13.9%	13.2%	21.7%	11.9%	9.1%	8.2%	10.4%	11.7%	10.6%	9.2%
		Machine Tool		1,772	1,528	1,201	1,359	1,097	826	853	1,163	1,172	1,338	933
			YoY	9.7%	-24.5%	-18.2%	11.9%	-38.1%	-45.9%	-29.0%	-14.4%	6.8%	62.0%	9.4%
		Industrial Machinery		521	383	602	370	237	306	284	519	229	375	301
			YoY	50.1%	68.0%	30.0%	38.1%	-54.5%	-20.1%	-52.8%	40.3%	-3.4%	22.5%	6.0%
		Food Machinery		7	15	443	2,159	220	111	10	112	267	427	565
			YoY	-75.0%	-98.7%	-59.2%	1,511.2%	3,042.9%	640.0%	-97.7%	-94.8%	21.4%	284.7%	5,550.0%
		Other		-	-	-	-	-	-	-	-	1	1	-
			YoY	-	-	-	-	-	-	-	-	-	-	-

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Electrical discharge machines			FY12/19				FY12/20				FY12/21
Cumulative			Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3
Orders
Total			758	1,486	2,214	2,921	627	1,301	2,012	2,867	1,311	2,513	3,387
	YoY		-35.5%	-36.3%	-31.8%	-24.9%	-17.3%	-12.4%	-9.1%	-1.8%	109.1%	93.2%	68.3%
	North and South America		73	151	212	290	56	84	143	225	58	128	182
		YoY	9.0%	19.8%	3.4%	3.6%	-23.3%	-44.4%	-32.5%	-22.4%	3.6%	52.4%	27.3%
	Europe		111	195	305	388	78	139	204	281	100	208	321
		YoY	9.9%	-11.4%	0.7%	-9.3%	-29.7%	-28.7%	-33.1%	-27.6%	28.2%	49.6%	57.4%
	China		392	791	1,179	1,573	350	862	1,330	1,888	1,007	1,865	2,378
		YoY	-51.0%	-48.7%	-42.5%	-31.5%	-10.7%	9.0%	12.8%	20.0%	187.7%	116.4%	78.8%
	Asia		103	182	245	322	77	112	164	241	78	162	238
		YoY	5.1%	-7.1%	-11.6%	-7.7%	-25.2%	-38.5%	-33.1%	-25.2%	1.3%	44.6%	45.1%
	Japan		758	1,486	2,214	2,921	627	1,301	2,012	2,867	1,311	2,513	3,387
		YoY	-35.5%	-36.3%	-31.8%	-24.9%	-17.3%	-12.4%	-9.1%	-1.8%	109.1%	93.2%	68.3%
Unit sales
Total			850	1,517	2,242	3,001	517	1,190	1,858	2,706	715	1,694	2,657
	YoY		-2.1%	-27.3%	-28.9%	-25.6%	-39.2%	-21.6%	-17.1%	-9.8%	38.3%	42.4%	43.0%
	North and South America		64	147	221	301	60	98	152	238	52	125	176
		YoY	-11.1%	7.3%	2.8%	1.3%	-6.3%	-33.3%	-31.2%	-20.9%	-13.3%	27.6%	15.8%
	Europe		92	177	281	384	67	120	197	279	68	150	242
		YoY	-16.4%	-24.4%	-15.6%	-18.3%	-27.2%	-32.2%	-29.9%	-27.3%	1.5%	25.0%	22.8%
	China		431	767	1,134	1,538	248	741	1,188	1,712	467	1,172	1,883
		YoY	-12.2%	-40.4%	-43.0%	-36.5%	-42.5%	-3.4%	4.8%	11.3%	88.3%	58.2%	58.5%
	Asia		96	190	266	328	60	117	160	226	67	138	186
		YoY	6.7%	-5.9%	-4.0%	-3.8%	-37.5%	-38.4%	-39.8%	-31.1%	11.7%	17.9%	16.3%
	Japan		167	236	340	450	82	114	161	251	61	109	170
		YoY	59.0%	4.4%	0.6%	-10.4%	-50.9%	-51.7%	-52.6%	-44.2%	-25.6%	-4.4%	5.6%
Electrical discharge machines			FY12/19				FY12/20				FY12/21
Quarterly			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Orders
Total			758	728	728	707	627	674	711	855	1,311	1,202	874
	YoY		-35.5%	-37.1%	-20.2%	9.4%	-17.3%	-7.4%	-2.3%	20.9%	109.1%	78.3%	22.9%
	North and South America		73	78	61	78	56	28	59	82	58	70	54
		YoY	9.0%	32.2%	-22.8%	4.0%	-23.3%	-64.1%	-3.3%	5.1%	3.6%	150.0%	-8.5%
	Europe		111	84	110	83	78	61	65	77	100	108	113
		YoY	9.9%	-29.4%	32.5%	-33.6%	-29.7%	-27.4%	-40.9%	-7.2%	28.2%	77.0%	73.8%
	China		392	399	388	394	350	512	468	558	1,007	858	513
		YoY	-51.0%	-46.3%	-23.6%	60.2%	-10.7%	28.3%	20.6%	41.6%	187.7%	67.6%	9.6%
	Asia		103	79	63	77	77	35	52	77	78	84	76
		YoY	5.1%	-19.4%	-22.2%	6.9%	-25.2%	-55.7%	-17.5%	0.0%	1.3%	140.0%	46.2%
	Japan		758	728	728	707	627	674	711	855	1,311	1,202	874
		YoY	-35.5%	-37.1%	-20.2%	9.4%	-17.3%	-7.4%	-2.3%	20.9%	109.1%	78.3%	22.9%
Unit sales
Total			850	667	725	759	517	673	668	848	715	979	963
	YoY		-2.1%	-45.2%	-32.1%	-13.5%	-39.2%	0.9%	-7.9%	11.7%	38.3%	45.5%	44.2%
	North and South America		64	83	74	80	60	38	54	86	52	73	51
		YoY	-11.1%	27.7%	-5.1%	-2.4%	-6.3%	-54.2%	-27.0%	7.5%	-13.3%	92.1%	-5.6%
	Europe		92	85	104	103	67	53	77	82	68	82	92
		YoY	-16.4%	-31.5%	5.1%	-24.8%	-27.2%	-37.6%	-26.0%	-20.4%	1.5%	54.7%	19.5%
	China		431	336	367	404	248	493	447	524	467	705	711
		YoY	-12.2%	-57.8%	-47.9%	-6.0%	-42.5%	46.7%	21.8%	29.7%	88.3%	43.0%	59.1%
	Asia		96	94	76	62	60	57	43	66	67	71	48
		YoY	6.7%	-16.1%	1.3%	-3.1%	-37.5%	-39.4%	-43.4%	6.5%	11.7%	24.6%	11.6%
	Japan		167	69	104	110	82	32	47	90	61	48	61
		YoY	59.0%	-43.0%	-7.1%	-32.9%	-50.9%	-53.6%	-54.8%	-18.2%	-25.6%	50.0%	29.8%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

		FY12/19				FY12/20				FY12/21			FY12/21
		Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	% of Est.	FY Est.
Capital investment		1,918	2,760	3,353	6,561	386	810	1,566	2,448	400	1,301	1,954	63.0%	3,100
	YoY	-9.6%	-41.0%	-39.6%	-23.5%	-79.9%	-70.7%	-53.3%	-62.7%	3.6%	60.6%	24.8%		26.6%
Depreciation		831	1,667	2,542	3,664	839	1,671	2,521	3,399	814	1,669	2,548	72.8%	3,500
	YoY	10.9%	10.5%	11.3%	18.8%	1.0%	0.2%	-0.8%	-7.2%	-3.0%	-0.1%	1.1%		3.0%
R&D expenses		904	1,911	2,870	3,483	807	1,577	2,364	3,220	770	1,581	2,305	64.0%	3,600
	YoY	-0.7%	-8.0%	-4.9%	-10.7%	-10.7%	-17.5%	-17.6%	-7.6%	-4.6%	0.3%	-2.5%		11.8%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Foreign exchange rates		FY12/19				FY12/20				FY12/21
(Average during term)		Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	FY Est.
USD		110.22	110.06	109.12	109.03	108.86	108.23	107.55	106.76	106.09	107.82	108.58	108.00
	YoY	1.8%	1.3%	-0.4%	-1.3%	-1.2%	-1.7%	-1.4%	-2.1%	-2.5%	-0.4%	1.0%	1.2%
CNY		16.32	16.19	15.88	15.77	15.60	15.38	15.37	15.48	16.35	16.65	16.77	16.80
	YoY	-4.3%	-5.3%	-5.7%	-5.6%	-4.4%	-5.0%	-3.2%	-1.8%	4.8%	8.3%	9.1%	8.5%
EUR		125.16	124.32	122.62	122.03	120.08	119.31	120.93	121.88	127.81	129.89	129.87	129.00
	YoY	-6.0%	-5.5%	-6.3%	-6.4%	-4.1%	-4.0%	-1.4%	-0.1%	6.4%	8.9%	7.4%	5.8%
THB		3.49	3.49	3.49	3.52	3.48	3.43	3.41	3.42	3.50	3.50	3.45	3.45
	YoY	1.7%	1.7%	2.3%	2.9%	-0.3%	-1.7%	-2.3%	-2.8%	0.6%	2.0%	1.2%	0.9%
Foreign exchange rates		FY12/19				FY12/20				FY12/21
(End-term)		Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3
USD		110.99	107.79	107.92	109.56	108.83	107.74	105.80	103.50	110.71	110.58	111.92
	YoY	4.5%	-2.5%	-5.0%	-1.3%	-1.9%	0.0%	-2.0%	-5.5%	1.7%	2.6%	5.8%
CNY		16.47	15.69	15.13	15.67	15.31	15.23	15.54	15.88	16.84	17.11	17.30
	YoY	-2.7%	-5.8%	-8.3%	-3.0%	-7.0%	-2.9%	2.7%	1.3%	10.0%	12.3%	11.3%
EUR		124.56	122.49	118.02	122.54	119.55	121.08	124.17	126.95	129.80	131.58	129.86
	YoY	-4.6%	-4.2%	-10.7%	-3.5%	-4.0%	-1.2%	5.2%	3.6%	8.6%	8.7%	4.6%
THB		3.49	3.50	3.53	3.63	3.34	3.49	3.34	3.44	3.54	3.44	3.30
	YoY	2.6%	5.1%	0.9%	6.5%	-4.3%	-0.3%	-5.4%	-5.2%	6.0%	-1.4%	-1.2%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Q3 FY12/21 results (out November 12, 2021)

Summary (nine months)

Revenue: JPY54.0bn (+32.5% YoY)
Operating profit: JPY5.0bn (increase of roughly 6.0x YoY)
Recurring profit: JPY6.1bn (increase of roughly 6.8x YoY)
Net income*: JPY4.4bn (increase of roughly 7.1x YoY)
* Net income attributable to owners of the parent

In the mainstay Machine Tool segment, both orders and sales of electrical discharge machines were higher than the previous year, leading to an increase in segment profit to JPY5.3bn (JPY1.7bn in Q3 FY12/21). In addition, Food Machinery and Other (dies/molds, etc.) also grew, offsetting the sluggish performance of Industrial Machinery. Segment profit is stated prior to adjustments.

In te