Financial Results for the Fiscal Year 218 Third Quarter http://www.star-m.jp Code 7718 January 1, 218 * The projections in this document are based on information available at the time of release of this report and certain assumptions the Company considers reasonable. The Company does not promise that these projections will be achieved. Actual results may differ materially from projections due to a variety of factors.
Contents Overview of Fiscal 218 Third Quarter Financial Data Quarterly Information (Net Sales and Operating ) Segment Overview P2 P3 P5 Special Products P6 Machine Tools P7 Precision Products P8 Reference Business Segments and Products P9 1
Overview of Fiscal 218 Third Quarter Year-on-year sales and profits increased substantially Net Sales Operating Ordinary Net Attributable to Owners of Parent 43.41 billion 23.6% up YoY 4.9 billion 54.2% up YoY 4.68 billion 9.2% up YoY 3.13 billion 44.8% up YoY Sales and profits rose sharply, supported by strong sales of machine tools. Star Micronics raised full-year forecasts again and made the decision to implement an additional share buyback. The cloud services business was overhauled (subsidiary dissolved). 2
Financial Data for Actual Third Quarter for Actual YoY Change Actual Full-Year Forecast (Revised) YoY Change Net Sales Special Products 8,467 8,911 5.2 11,81 12,2 1.1 Machine Tools 23,441 31,42 34. 33,629 43,18 28.4 Precision Products 3,224 3,98 (3.9) 4,226 4,12 (2.5) Cloud Services* - - - - - - Total 35,134 43,412 23.6 48,937 59,5 21.6 Operating Special Products 1,478 17.5 1,272 14.3 (13.9) 1,73 15.4 1,74 14.3 2.2 Machine Tools 2,99 12.4 4,832 15.4 66.1 4,372 13. 6,84 15.8 56.4 Precision Products 254 7.9 252 8.1 (.9) 284 6.7 26 6.3 (8.7) Cloud Services* (266) - (195) - - (357) - (22) - - Eliminations or Corporate (1,722) (2,71) - (2,396) (2,72) - Total 2,652 7.6 4,9 9.4 54.2 3,66 7.4 5,9 9.9 63.6 Ordinary 2,464 7. 4,687 1.8 9.2 3,583 7.3 6,5 1.9 81.4 Net Attributable to Owners of Parent 2,163 6.2 3,133 7.2 44.8 3,181 6.5 4,6 7.7 44.6 *Cloud Services is included in Special Products in consolidated earning report and disclosure information. Exchange Rate Assumed Exchange Rate U S $ 18.71 111.93 18.87 112.11 EUR 121.21 124.55 12.36 126.59 GBP 151.76 142.68 147.79 144.41 CHF 11.82 113.77 11.41 113.89 3
Financial Data Actual Actual Y o Y ~ Total ~ Total ~ Total Net Sales Special Products 2,77 2,842 2,854 8,467 2,953 2,922 3,35 8,911 443 5.2 Machine Tools 7,27 7,979 8,255 23,441 9,494 1,638 11,269 31,42 7,96 34. Precision Products 1,58 1,121 1,44 3,224 1,27 1,69 1,1 3,98 (126) (3.9) Cloud Services* - - - - - - - - - Total 11,36 11,943 12,154 35,134 13,475 14,63 15,36 43,412 8,278 23.6 Operating Special Products 473 17.1 472 16.6 532 18.6 1,478 17.5 465 15.8 318 1.9 488 16.1 1,272 14.3 (25) (13.9) Machine Tools 926 12.9 1,69 13.4 912 11.1 2,99 12.4 1,293 13.6 1,557 14.6 1,98 17.6 4,832 15.4 1,922 66.1 Precision Products 77 7.3 85 7.6 91 8.7 254 7.9 87 8.5 76 7.2 88 8.8 252 8.1 (2) (.9) Cloud Services* (84) - (59) - (122) - (266) - (7) - (73) - (51) - (195) - 71 - Eliminations or Corporate (59) (563) (568) (1,722) (673) (69) (77) (2,71) (348) - Total 82 7.3 1,3 8.4 846 7. 2,652 7.6 1,12 8.2 1,189 8.1 1,798 11.8 4,9 9.4 1,437 54.2 Ordinary 751 6.8 731 6.1 98 8.1 2,464 7. 1,16 8.6 1,449 9.9 2,77 13.6 4,687 1.8 2,223 9.2 Net Attributable to Owners of Parent 653 5.9 47 3.4 1,13 9.1 2,163 6.2 837 6.2 842 5.8 1,453 9.5 3,133 7.2 969 44.8 * Cloud Services is included in Special Products in consolidated earning report and disclosure information. Change 4
Quarterly Information (Net Sales and Operating ) Net Sales Net Sales Operating Operating 16, 15,36 3, 14,814 14,838 14,63 14,35 13,83 13,3 13,475 12,979 12,44 12,335 11,943 12,154 12, 11,36 1,438 2, 1,798 1,613 1,653 1,555 1,559 1,53 8, 1,2 1,322 1,3 953 1,12 1,189 1, 4, 83 82 846 4Q 4Q 4Q FY2/15 FY2/16 5
Special Products 4, 3, Sales Thermal and Others Dot Matrix 2,77 2,842 2,854 2,953 2,922 3,35 (Thousand Units) 2 15 1 131 65 Sales Volume by Region 157 61 164 74 137 6 132 61 143 63 America Europe Asia Domestic 2, 1, 2,319 2,446 2,416 2,66 2,565 2,58 5 35 17 12 39 39 17 33 4 15 4 15 21 41 13 15 4 18 19 45 395 437 346 356 455 Sales in the U.S. market decreased due to the impact of temporary inventory adjustments by sales agents. Sales in the European market increased due to recovery trend in market conditions mainly in developed countries. Sales in the Asian market declined due to sluggish sales of dot impact printers in China. Sales in Japanese market increased on the back of robust mpos-related sales. 4, 3, 2, 1, 2,77 1,41 698 265 44 2,842 1,334 726 294 486 Sales by Region 2,854 1,56 615 278 455 2,953 1,336 798 218 599 2,922 1,42 832 236 451 3,35 1,416 744 337 536 America Europe Asia Domestic The above comments relate to the first three quarters of fiscal 218 6
Machine Tools Sales (Units) Sales Volume by Region Overseas Domestic 12, 7,979 7,27 8, 4, 6,978 6,349 8,255 7,147 9,494 8,155 1,638 8,948 11,269 9,636 1, 75 5 25 536 45 126 296 69 653 7 14 353 9 645 68 162 324 91 799 66 162 458 113 924 82 178 516 148 957 77 184 555 141 America Europe Asia Domestic 858 1, 1,17 1,338 The above comments relate to the first three quarters of fiscal 218 1,69 1,632 Sales in the U.S. market increased substantially mainly in the medical equipment-related sector. Sales grew substantially in the European market. This growth largely reflected sustained capital investment mainly in automotiverelated sectors. In the Asian market, sales of lathes were strong in the automotive, communication and medical equipment-related sectors, centered on China Sales were healthy in the automotive sector in Japan, supporting a steep rise in overall sales of CNC automatic lathes. 12, 8, 4, 7,27 1,412 2,689 2,247 858 Sales by Region 7,979 1,656 8,255 1,837 9,494 1,886 3,168 2,866 3,22 2,455 2,287 3,11 1, 1,17 1,338 1,638 2,117 3,581 3,25 1,69 11,269 2,18 3,848 3,769 1,632 America Europe Asia Domestic 7
Precision Products Sales Sales of Non-wristwatch Components Non-wristwatch Components Wristwatch Components 1,2 8 4 1,121 1,58 568 641 1,44 596 489 48 448 1,27 558 469 1,69 583 486 1,1 56 494 75 5 25 568 227 52 71 136 81 641 28 76 17 144 13 596 193 64 91 121 126 558 179 6 75 121 121 583 177 73 76 133 121 56 169 82 3 12 148 Automotive Medical HDD Air Conditioning OA Electronic Parts and Others Sales of wristwatch components were steady compared with the corresponding period of the previous fiscal year, despite an impact from production adjustments at wristwatch makers in the first half of the fiscal year. Sales of non-wristwatch declined. Despite robust sales trends in medical-related components, this result was largely attributable to the decline in automotive and HDD components. The above comments relate to the first three quarters of fiscal 218 8
Reference:Business Segments and Products Special Products Machine Tools Precision Products Wristwatch Components Cash Drawer and Receipt Printer mpop CNC Swiss Type Automatic Lathe SV-2R Non-Wristwatch Components (Automotive, Air Conditioning, HDD and Medical Components) POS Printer TSP1III CNC Swiss Type Automatic Lathe SR-38 type B (Automotive Components) Mobile Printer SM-L2 CNC Swiss Type Automatic Lathe SR-32JII type B 9