Toyobo Co., Ltd. · TSE:3101
Toyobo — FY2013 Earnings Presentation
26 slides from Toyobo's earnings presentation, May 9, 2014
Slide 1: Presentation to Investors
Presentation to Investors Seiji Narahara President Toyobo Co., Ltd. May 9, 2014 (Analysts’ Meeting)
Slide 2: Highlights
Highlights FY 3/14 Results Operating income rose 23% due to contributions from the life science business, expansion in sales of new products, and recovery in textiles. - Despite recovery in profitability of industrial films, packaging films experienced delays in passing on costs. - Super retarder fi
Slide 3: Contents
Contents Ⅰ Results for FY 3/14 Ⅱ Forecasts for FY 3/15
Slide 4: I. Results for FY 3/14
I. Results for FY 3/14
Slide 5: Results for FY 3/14: P&L, CF
(1) Results for FY 3/14 1) PL.CF \ bn. FY 3/14 Pr e vio u s FY 3/13 YoY fo r e c ast s H1 H2 Am o u n t ％ ( F eb. 2014) Net sales 339.0 174.5 177.1 351.6 12.6 +3.7% 350.0 （R a ti o of Ov ers ea s Sal es ） 2 3 .4 % 26.8% 26.4% 2 6 .6 % - - Operating income 17.1 11.3 9.7 21.0 3.9 +23.0% 22.0 Ratio to
Slide 6: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [FY 3/13 FY 3/14] Depreciation of the yen Others Increase in (sales price) raw material +0.4 Volume +3.7 and fuel costs increase Rise -5.8 in prices +2.0 +3.6 17.1 21.0 FY 3/13 FY 3/14 (¥ bn.) FY 3/13 FY 3/14 H1 H2 H1 H2 Exchange rate 79 87 83 99 101 100 (\/U
Slide 7: BS
2) BS \ bn. M ar . 3 1 , M ar . 3 1 , Ch an ge 2013 2014 Total assets 447.4 4,474 456.3 +8.8 Inventories 71.0 710 75.4 +4.4 Net assets 155.5 1,378 145.1 -10.4 Shareholders' equity 138.0 1,380 142.3 +4.3 (Equity ratio) 30.8% 30.8% 31.2% - Minority interests 17.5 (2 . 5 ) * 2.8 -14.7 Interest-bearing
Slide 8: Results by Segment
(2) Results by Segment \ bn. Ne t Sale s Ope r at in g In c o m e (Loss) Pr e viou s FY 3 / 1 4 FY 3 / 1 4 for e c asts FY 3 / 1 3 FY 3 / 1 3 H1 H2 H1 H2 (No v. 2 0 1 3 ) Films & Functional Polymers 137.4 74.9 73.1 148.0 7.6 4.8 3.0 7.8 9.6 Industrial Materials 71.9 34.7 37.0 71.7 5.5 2.3 3.2 5.5 5.
Slide 9: Films & Functional Polymers
1) Films & Functional Polymers In the packaging films business, difficulties were experienced in passing on costs. In the industrial films business, sales of films for LCDs slowed, but new products contributed to performance. Net sales (¥ bn.) Operating income (¥ bn.) 148.0 137.4 7.6 7.8 (5.6%) (5.3
Slide 10: Industrial Materials
2) Industrial Materials The results for high-performance fibers were firm and “Breathair” held strong. The Company withdrew from the tire cord business as planned. Net sales (¥ bn.) Operating income (¥ bn.) 71.9 71.7 5.5 5.5 (7.6%) (7.7%) 36.8 37.0 2.9 3.2 35.0 34.7 2.6 2.3 FY 3/13 FY 3/14 FY 3/13 F
Slide 11: Life Science
3) Life Science The performance of bioproducts business and the contract manufacturing of pharmaceuticals was favorable. Sales of new product “Nerbridge” expanded steadily. Net sales (¥ bn.) Operating income (¥ bn.) 27.3 24.8 5.1 (18.8%) 4.2 (16.8%) 12.2 14.3 2.5 2.6 12.6 13.1 2.6 1.6 FY 3/13 FY 3/1
Slide 12: Textiles
4) Textiles Profitability of thoub (traditional menswear of the Middle East) textile materials improved due to foreign currency movements. Sales of acrylic fiber to China held firm. Net sales (¥ bn.) (¥ bn.) Operating income 79.2 79.1 38.4 39.4 3.0 (3.7%) 0.2 1.2 40.8 39.7 (0.3%) 0.7 1.8 FY 3/13 FY
Slide 13: II. Forecasts for FY 3/15
II. Forecasts for FY 3/15
Slide 14: Forecasts for FY 3/15
(1) Forecasts for FY 3/15 \ bn. FY 3 / 1 4 FY 3 / 1 5 Change (Fo r e c ast s) Amount ％ Net sales 351.6 365.0 +13.4 +3.8% Operating income 21.0 24.0 +3.0 +14.3% Ratio to sales 6.0% 6.6% - - Net income 8.2 11.0 +2.8 +34.9% EPS (\ ) 9.18 12.39 - - Depreciation 14.0 15.0 +1.0 - Capital expenditures 20.1
Slide 15: Analysis of Changes in Operating Income (Forecasts)
Analysis of Changes in Operating Income [Forecasts: FY 3/14→ FY 3/15] Depreciation of the yen Increase in raw material Volume (sales price) Others Rise increase and fuel costs in prices +2.3 +0.3 +1.0 -2.1 +1.5 21.0 24.0 FY 3/14 FY 3/14 FY 3/15 FY 3/15 (¥ bn.) Exchange rate 100 101 (\/US$) Naphtha p
Slide 16: Forecasts by Segment
(2) Forecasts by Segment \ bn. Ne t sale s Ope r at in g in c o m e FY 3 / 1 4 FY 3 / 1 5 FY 3 / 1 4 FY 3 / 1 5 Films & 148.0 155.0 7.8 9.0 Functional Polymers Industrial Materials 71.7 73.0 5.5 6.5 Life Science 27.3 31.0 5.1 6.0 Specialty Businesses 247.0 259.0 18.4 21.5 7.5% 8.3% Textiles 79.1 80.
Slide 17: III. Medium-Term Management Plan
III. Medium-Term Management Plan
Slide 18: Positioning of the 2014 Medium-Term Management Plan
1.Positioning of the 2014 Medium-Term Management Plan Toyobo’s medium-term plan for setting the Company on a growth path aims for net sales of ¥500 billion and operating income of ¥50 billion in the future. 2014 Medium-Term Operating income (¥ bn.) Management Plan 50 (2014 to 2017) 40 300 30 Strong
Slide 19: A Review of the 2010 Medium-Term Management Plan
2. A Review of the 2010 Medium-Term Management Plan: Toyobo’s Strengths and Issues to Address Review of the 2010 Plan Income did not reach the targets, in part because of changes in the operating environment. Financial position improved (Debt/equity ratio: From 1.60 to 1.20) Company’s positioning
Slide 20: Changes Anticipated in the Business Environment
3.Changes Anticipated in the Business Environment Business environment : Major changes, Simultaneous, and Discontinuous Domestic market : Shrinking Decline in population, shifting to overseas on supply chains Overseas markets : Expanding Increase in populations, resource constraints → Requirement
Slide 21: The Kind of Company Toyobo Aims to Be
4.The Kind of Company Toyobo Aims to Be “The category leader that continues to create new value that contributes to society in the environment, life science, and high-function products fields” Strong company with Growth Potential and Stable Profitability Growth Potential : Development of overseas bu
Slide 22: Management Policy
5.Management Policy Build a strong Company through “Continual Reform of the Business Portfolio” Stratification of our business responding to changes in the operating environment Acceleration of creation of the “new”: Development of overseas businesses/ developing new products and entering new bu
Slide 23: Numerical Targets
6．Numerical Targets 【Total】 \ bn. 【Segment】 \ bn. FY 3/14 FY 3/18 FY 3/14 FY 3/18 Net sales 351.6 420.0 Net sales Net sales 93.6 170.0 Films & 148.0 180.0 Overseas Sales Functional Polymers （Ratio of Overseas Sales） 27% 40% Industrial Materials 71.7 90.0 Operating income 21.0 30.0 Life Science 27.3
Slide 24: IV. Litigation
IV. Litigation
Slide 25: Progress of Litigation regarding Body Armor Using ZYLON Fiber
Progress of Litigation regarding Body Armor Using ZYLON Fiber 1) In June 2003, an accident with body armor (BA) using Zylon fiber occurred in Pennsylvania, USA. (This is the only accident in which a bullet penetrated BA.) 2) The injured/deceased persons and purchasers of the same type of BA sued the
Slide 26: Please Note
Please Note The business performance forecasts and targets included in the business plans contained in this presentation are based on information known to the Company’s management as of the day of presentation. Please be aware that the content of the future forecasts may differ significantly from ac