Thursday, 10 November 2022.

AMADA CO., LTD.

FY2022 2nd Quarter Financial Results Announcement

Analyst and Investor Briefing Q&A (Summary)

Speakers

Tsutomu Isobe (Representative Director, President)

Kazuhiko Miwa (Director, Executive Officer, Executive General Manager of Financial Div.)

Q&A

Q What are your prospects for orders in the next 1-2 year span

  1. Domestic sheet metal orders are expected to exceed 100 billion this fiscal year, and we believe that expansion from this level is quite a hurdle. On the other hand, the environment in North America is good due to there turn to manufacturing, and we believe that further expansion is possible through the introduction of new products, as there is sufficient production capacity due to the investment in the eastern plant. In Europe, there is room to increase market share and we will do so by taking over from other companies. The immediate challenge, however, is to be able to generate sales that match the current order intake and order backlog rather than the order situation.

Q Why has the revised forecast not increased sales in the second half of the year by much?

  1. The revised forecast takes into account the progress made in the first half of the year and the weakening of the yen in the exchange rate, but on the other hand, as the supply constraints that were initially expected have not improved, the second half of the year is planned to be at the same level as initially expected.
  1. Given that you have a strong weapon of advantage in SCOPE 3 through the introduction of products that are strong in decarbonisation, I believe that it is fully possible to strengthen your own branding from the perspective of ESG involved decarbonisation. What are your thoughts on this point?
  1. The new CNC also features a CO2 emissions display, and our branding is well established, having won the Minister of Economy, Trade and Industry Award and the MM Award at the European exhibition, and together with our servo-motorised benders, we are pushing it all over the place as a green machine. The company plans to actively promote the product in the integrated report it plans to disclose in the future
  1. The outlook for the future in the country seemed bearish, but with decarbonisation and a return to manufacturing, will the demand environment be much better in the future?
  1. As you say, we expect the environment to accelerate with increased automation and DX support, and we will have opportunities to expand our high-value-added products and other products that contribute to this. On the other hand, we do not think that market conditions will deteriorate to an extreme degree in the future, but as our market share is already around 70% in Japan and there are limits to market growth, we have to think about how to uncover and expand demand, which is a difficult market to be in. We believe that this is a difficult market in that we have to think about how to uncover and expand demand.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Amada Co. Ltd. published this content on 18 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2023 23:59:05 UTC.