Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY2006 Earnings Presentation
22 slides from Toyobo's earnings presentation, Nov 8, 2006
Slide 1: Presentation to Investors
Presentation to Investors Ryuzo Sakamoto President TOYOBO Co., Ltd. November 8, 2006 (at Analysts Meeting)
Slide 2: Contents
Contents １．Results of the 1st half of the fiscal year 2006 and the forecast for the full year ２．The progress of the mid-term plan: “The transformation of the Business Portfolio” （Appendix） １．Historical data ２．Businesses and strategies
Slide 3: Results of the 1st half of fiscal 2006 and the forecast for the full year
Results of the 1st half of the fiscal year 2006 and the forecast for the full year (1) P/L ・[1st Half] Sales and profits increased continuously, while facing the hike of raw material costs ・[the full year] Operating income and net income will hit a new high for 3 consecutive terms （Bn.\） FY 2005 FY
Slide 4: Analysis of Operating income: Results of 1st half
① Analysis of Operating income :[Results of 1st half] (year- on- year) Cost Cost Hike in （ Bn.¥） -reduction Fuels & Raw Materials※ 15 +1.3 -3.8 +3.6 10 -2.7 +2.0 Volume Increase Cost Increase in Revised 14.8 Fixed Costs Prices 15.2 (with CAPEX) & Variable Costs 5 (7 .5 % ) (7 .1 % ) ←OP/ Net Sales R
Slide 5: Analysis of Operating income: Forecast of the full year FY2006
② Analysis of Operating income: [Forecast of the full year FY2006] (year- on- year) Cost Hike in (Bn.¥) Cost-reduction Fuels & Raw Materials※ 30 +2.5 -6.8 25 +10.4 -5.0 20 Cost Increase in Volume Increase Fixed Costs & Revised-price 31.0 15 29.9 (with CAPEX) & Variable Costs (7.4%) ←OP/ Net Sales Ra
Slide 6: B/S: Continuous improvement of the financial structure
(2) B/S ・Continuous improvement of the financial structure (Bn.\） FY 2005 FY 2006 Change* Full year Sep./06- 1st Half Full year* 1st Half* Mar./06 (Forecast) Total Assets ※ 518 515 523 - +8 （Ordinary Income ROA %） (4.7) (4.8) (4.9) - Interest-bearing Debt ※ 226 206 212 200 +6 Shareholders' Equity 11
Slide 7: Results and forecasts by each business segment
(3) Results and forecasts by each business segment (Bn.\) Net Sales Operating Income FY 2005 FY 2006 Change FY 2005 FY 2006 Change Full year year- Full year year- 1st Half Full year 1st Half 1st Half Full year 1st Half (Forecast) on-year (Forecast) on-year Films & Functional Polymers 57.3 116.4 62.0
Slide 8: Films & Functional polymers
①Films & Functional polymers (Bn.\) Change FY 2005 FY 2006 (Full year) Full year Amount 1st Half Full year 1st Half Rate (Forecast) Net Sales 57.3 116.4 62.0 127.0 +10.6 +9.1% Operating Income 8.0 14.9 7.8 15.6 +0.7 +4.6% (OP Ratio, %) (13.9%) (12.8%) (12.6%) (12.3%) Depreciation 2.0 4.5 3.2 - - - T
Slide 9: Industrial materials
②Industrial materials (Bn.\) Change FY 2005 FY 2006 (Full year) 1st Half Full year 1st Half Full year Amount Rate (Forecast) Net Sales 32 69 36 74 +5 +7.3% Operating Income 2.7 5.8 2.9 6.3 +0.5 +8.7% (OP Ratio, %) (8.5%) (8.4%) (8.2%) (8.5%) Depreciation 1.6 3.4 1.6 - - - Total Assets 77 79 81 - - -
Slide 10: Life science
③Life science (Bn.\) Change FY 2005 FY 2006 (Full year) 1st Half Full year 1st Half Full year Amount Rate (Forecast) Net Sales 14 30 15 34 +4 +14.6% Operating Income 2.7 5.6 2.5 5.7 +0.1 +1.6% (OP Ratio, %) (18.5%) (18.9%) (16.3%) (16.8%) Depreciation 0.9 1.9 1.2 - - - Total Assets 31 32 30 - - - (O
Slide 11: Textiles
④ Textiles (Bn.\) Change FY 2005 FY 2006 (Full year) Full year 1st Half Full year 1st Half Amount Rate (Forecast) Net Sales 71 143 78 145 +3 +1.7% Operating Income 1.7 3.4 2.4 4.2 +0.8 +23.9% (OP Ratio, %) (2.3%) (2.4%) (3.1%) (2.9%) Depreciation 1.7 3.5 1.4 - - - Total Assets 141 141 139 - - - (Ope
Slide 12: Operating Income by Business Segment (FY2004 through FY2006)
Operating Income by Business Segment (from FY2004 through FY2006) (Bn.¥) 40 31.0 28.8 29.9 Others 30 +0.8 Textiles -0.4 Life +0.1 +0.8 Science 20 +0.5 Industrial +0.7 Materials +1.2 +0.7 10 Films & Functional Polymers 0 FY 2004 FY 2005 FY 2006 (Forecast) ※Corporate segment is excluded １０
Slide 13: The progress of the mid-term plan: Transformation of the Business Portfolio
２．The progress of the mid-term plan : “The transformation of the Business Portfolio” (1) Accelerate the growth ; Specialties Action： (2) Enhance core technologies (3) Improve the efficiency of Assets ; non- Specialties (Bn.\) Fiscal Year 2005 2006(Forecast) 2007(Plan) Net Operating Net Operating Net
Slide 14: Investments for growth: CAPEX by Segment
(1) Investments for growth Business Investment Bn.\ Capacity Start- up Films for LCD & PDP a new line (Tsuruga) 10 +10 KT/Y FY2008 "Dyneema" a new line(Tsuruga) 1.6 +600 T/Y FY2008 (Nippon Dyneema Co.,ltd.) Medical Membrane (AKH) expand production capacity - 6% growth /Y FY2006-08 Airbag Fabrics exp
Slide 15: Enhance core technologies: Technology Stock Management
(2) Enhance core technologies “Technology Stock Management” Development & Expansion of our Business Films Functional Polymers constituent technologies Packaging Optical Co-polymer Molding ○ ○ ● ○ co-polymerization Enhancing ○ ● ○ ○ molding & processing ○ ○ ○ modification&mixing ○ ○ ○ analyzing & sim
Slide 16: Improve the efficiency of Assets: non-Specialties
(3) Improve the efficiency of Assets : non- Specialties The allocation of total assets 515 bn.¥ （end of March,2006） Real Estate, Engineering, Corporate Infrastructure 36 25 80 233 Others Specialties 141 Textiles ◆Reduction of the assets for non- Specialty businesses ・Master plan toward the end of FY
Slide 17: Appendix I: Historical data
Appendix Ⅰ: Historical data Consolidated Statements of Income FY 2003 FY 2004 FY 2005 FY 2006 Change, % Change, % Fullyear Change, % Change, % Full year Full year Full year 1st Half 1st Half year-on-year year-on-year (Forecast) year-on-year 1st Half Net Sales Mil.\ 373,066 393,686 +5.5% 401,948 +2.1
Slide 18: Appendix II: Businesses and strategies: Films & Functional Polymers
Appendix Ⅱ: Businesses and strategies (1) Films & Functional Polymers Business/ Market position Strategy -Industrial films -Expansion of Production Capacity ・PET films for LCD & Optical use (+10 KT/Y, FY2008 start- up) -Packaging films (PET, PA, PP, PE) -Overseas production (Shanghai) Films ・Functio
Slide 19: Industrial Materials
(2) Industrial Materials Business/ Market position Strategy Airbag -The Japanese market share 50％ -Expansion of capacity (worldwide) fabrics ( in terms of fiber amount) -Enter into coated fabrics market -Patent（non-coated fabrics） （for side & curtain airbag uses) -"DYNEEMA" -New applications（Replaci
Slide 20: Life Science
(3) Life Science Business/ Market position Strategy -Enzymes for Diagnostics (Worldwide No.2) -IVD* and Bio research reagents - Enter into new businesses Bio products -Advanced Biotechnologies 1)Total Diagnostic System business & Pharma. (Fermentation, Purification, Genetic 2)Functional materials (n
Slide 21: Textiles
(4) Textiles Business/ Market position Strategy Functional - Functional fabrics - Develop new functional fabrics: Textiles (for Sports clothes , Underwears, Uniforms) (example: pusue the comfort by -”Ｅｘｌａｎ”（Specialty Acrylic fibers) functional fiber & textile technologies) Apparels -Apparel manufact
Slide 22: 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