Toyobo Co., Ltd. · TSE:3101
Toyobo — FY2012 Earnings Presentation
27 slides from Toyobo's earnings presentation, May 9, 2012
Slide 1: Presentation to Investors
Presentation to Investors Ryuzo Sakamoto President Toyobo Co., Ltd. May 9, 2012 (Analysts’ Meeting)
Slide 2: Highlights
Highlights FY 3/12 Results Deterioration in the LCD-related markets brought decline in operating income, but net income rose slightly -Unit prices of films for LCDs lowered by competition. Reduced production in films business -Higher oil prices, strong yen and floods in Thailand had adverse effects
Slide 3: Contents
Contents I Results of FY 3/12 II Forecasts for FY 3/13 III Progress of Medium-Term Plan (FY 3/11-FY 3/14) Ⅳ Litigation Appendix
Slide 4: I. Results of FY 3/12
I. Results of FY 3/12
Slide 5: (1) Results of FY 3/12
(1) Results of FY 3/12 \ bn. FY 3/12 Previous FY 3/11 Change forecasts H1 H2 Amount ％ Feb. 2012 Net sales 340.6 178.1 171.4 349.5 +8.9 +2.6% 350.0 Operating income 20.9 11.0 7.3 18.3 -2.6 -12.4% 20.0 Ratio to sales 6.1% 6.2% 4.2% 5.2% - - 5.7% Net income 4.2 5.2 -0.6 4.6 +0.4 +10.4% 6.5 EPS (\) 5.49
Slide 6: (2) Financial Position
(2) Financial Position \ bn. Mar. 31, Mar. 31, Dec. 31, Change 2011 2012 2011 Total assets 443.5 437.8 -5.7 Inventories 66.0 77.6 +11.6 82.2 Net assets 149.8 147.7 -2.0 Shareholders' equity 125.8 130.6 +4.8 (Equity ratio) 28.4% 29.8% - Interest-bearing debt 151.8 154.9 +3.1 D/E ratio 1.21 1.19 - ROA
Slide 7: (3) Analysis of Changes in Operating Income
(3) Analysis of Changes in Operating Income [ FY 3/11 FY 3/12 ] Raw material Rise and fuel costs in prices increase +4.6 -5.9 Lower Cost Basis Others -0.4 -1.8 Volume Appreciation increase of the yen +3.1 (sales price) -2.2 20.9 18.3 FY 3/11 FY 3/11 FY 3/12 FY 3/12 (¥ bn.) Exchange rate 85 79 (\ /
Slide 8: (4) Results by Segment
(4) Results by Segment \ bn. Net sales Operating income Previous FY 3/12 FY 3/12 forecasts FY 3/11 FY 3/11 Feb. 2012 H1 H2 H1 H2 Films & Functional Polymers 127.0 70.8 62.5 133.3 12.5 6.5 2.7 9.2 10.7 Industrial Materials 71.5 34.3 36.9 71.2 4.9 2.4 2.9 5.3 5.3 Life Science 31.4 15.6 16.1 31.7 3.7 1
Slide 9: 1) Films & Functional Polymers
1) Films & Functional Polymers Industrial films due to impact of continued LCD market deterioration Reduced production in films business Automotive products affected by the earthquake and Thai floods, but are currently recovering in volume terms. Net sales (¥ bn.) Operating income (¥ bn.) 133.3 127.
Slide 10: 2) Industrial Materials
2) Industrial Materials Performance stable in environment-related businesses, including Functional filters; also in the lifestyle and safety fields. Airbag fabrics and non-woven fabrics are recovering in volume terms. Net sales (¥ bn.) Operating income (¥ bn.) 71.5 71.2 4.9 5.3 (6.9%) (7.5%) 36.9 36
Slide 11: 3) Life Science
3) Life Science Increase in sales of enzymes for diagnostic reagents. Demand remained strong for the contract manufacturing of pharmaceuticals and functional membranes Decrease in volume of intermediate medicines Net sales (¥ bn.) Operating income (¥ bn.) 31.4 31.7 3.7 3.5 (11.9% (11.0%) 16.5 16.1 )
Slide 12: 4) Textiles
4) Textiles Expanded initiatives in functional textiles for inner wear and sports apparel Realized positive benefits from structural reforms in the woolen business. Net sales (¥ bn.) Operating income (¥ bn.) 86.8 88.0 42.6 43.8 1.1 (1.2%) 0.6 (0.7%) 0.2 44.3 44.2 0.4 0.9 0.3 H2 H2 FY 3/11 FY 3/12 FY
Slide 13: II. Forecasts for FY 3/13
II. Forecasts for FY 3/13
Slide 14: (1) Forecasts for FY 3/13
(1) Forecasts for FY 3/13 \ bn. FY 3/12 FY 3/13 Change (Forecasts) Amount ％ Net sales 349.5 365.0 +15.5 +4.4% Operating income 18.3 24.0 * +5.7 +31.1% Ratio to sales 5.2% 6.6% - - Net income 4.6 10.0 +5.4 +118.0% EPS (\ ) 5.17 11.28 - - Depreciation 19.5 15.5 -4.0 - Capital expenditures 16.5 20.0 +3
Slide 15: (2) Analysis of Changes in Operating Income [Forecasts]
(2) Analysis of Changes in Operating Income [Forecasts: FY 3/12 → FY 3/13] Changing in Rise Appreciation depreciation Increase in prices of the yen methods in volume (sales price) +1.8 +4.0 +3.0 +0.2 Raw material Others and fuel costs -0.8 increase -2.5 18.3 24.0 FY 3/12 FY 3/12 FY 3/13 FY 3/13 (¥ b
Slide 16: (3) Forecasts by Segment
(3) Forecasts by Segment \ bn. Net sales Operating income FY 3/12 FY 3/13 FY 3/12 FY 3/13 Forecasts Forecasts Films & Functional Polymers 133.3 140.0 9.2 12.5 Industrial Materials 71.2 80.0 5.3 6.7 Life Science 31.7 33.0 3.5 4.3 Specialty Businesses 236.2 253.0 18.0 23.5 Operating income ratio (%) 7
Slide 17: III. Progress of Medium-Term Plan (FY 3/11-FY 3/14)
III. Progress of Medium-Term Plan (FY 3/11-FY 3/14)
Slide 18: (1) Targets and Management Policy
(1) Targets and Management Policy Our targets: “The category leader for providing new value in the environment, life science, and high-function products fields” Direction Growth of specialty businesses: 8% growth annually Efficiency and profitability: ROA 8% Financial stability: *D/E ratio of 1.0
Slide 19: (2) Quantitative Targets for FY 3/14
(2) Quantitative Targets for FY 3/14 \ bn. FY 3 / 1 2 FY 3 / 1 4 R e su lt s P lan R e vise d P lan (May 2 0 1 0 ) (May 2 0 1 2 ) Net sales 349.5 400.0 390.0 Specialty businesses 236.2 300.0 275.0 Com position ratio 68% 75% 71% Operating income 18.3 30.0 27.0 * Operating income ratio 5 .2 % 7 .5 % 6
Slide 20: (3) Action Plan and Progress-1: Capital investment
(3) Action Plan and Progress-1 1) Capital investment Start-up '1 1 '12 '1 3 '14 Equipment • Hybrid-type equipment for the production of PET film for industrial and packaging use • Coater equipment of films for process sheets of ceramic capacitor ・ Modified polyolefin adhesives “HARDLEN” ・ High-perfo
Slide 21: (3) Action Plan and Progress-2: Overseas business development
(3) Action Plan and Progress-2 2) Overseas business development Start-up Business '11 '12 '13 '14 Manufacturing and marketing bases for “VYLON” in Thailand Manufacturing and in China marketing bases for airbags fabrics in North America Manufacturing and marketing bases for desalination membranes in
Slide 22: (3) Action Plan and Progress-3: Product portfolio
(3) Action Plan and Progress-3 3) Improvement in the product portfolio （New products / New technologies） PET films and adhesives for photovoltaic backsheets PET films for ceramic capacitor process sheets PET films for touch screens (a low interference type) High-melting-point biomass polyamides for
Slide 23: IV. Litigation
IV. Litigation
Slide 24: 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 25: Appendix
Appendix
Slide 26: Business Fields
Business Fields Electronics & Fields: Automotive Information Environment Life Science Lifestyle & Display Safety Business Segments • PET films for optical uses • for photovoltaic systems ・Packaging Films & •Engineering plastics films Functional •Biomass high-melting-point Polymers polyamide for mold
Slide 27: 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