Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/16 Earnings Presentation
22 slides from Toyobo's earnings presentation, Nov 6, 2015
Slide 1: Presentation to Investors
Presentation to Investors Seiji Narahara President Toyobo Co., Ltd. November 6, 2015 (Analysts’ Meeting)
Slide 2: Highlights
Highlights H1 FY 3/16 Results Operating income up 16% and profit doubled (106%) year on year. Difficult business conditions related to LC-TVs and automobiles in Japan despite contribution from decline in raw material and fuel costs. Sales of “COSMOSHINE SRF” did not achieve the target. Overseas b
Slide 3: I. Results for H1 of FY 3/16
I. Results for H1 of FY 3/16
Slide 4: Results for H1 FY 3/16 PL, CF
(1) Results for H1 FY 3/16 1)PL.CF \ bn. H1 H2 H1 Previous YoY FY 3/15 FY 3/15 FY 3/16 forecasts Amount ％ (Aug. 2015) Net sales 172.3 179.0 179.7 +7.4 +4.3% 175.0 Operating income 9.0 11.5 10.5 +1.5 +16.4% 11.0 Ratio to sales 5.2% 6.5% 5.8% - - 6.3% Profit attributable to 2.6 5.5 5.4 +2.8 +106.4% 5.
Slide 5: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [H1 FY 3/15 H1 FY 3/16] Depreciation of yen Volume (sales price) increase +0.8 +0.3 Others Decrease in Down in prices -0.2 raw material -2.8 and fuel costs +3.0 9.0 10.5 H1 FY 3/15 H1 FY 3/16 (¥ bn.) 5
Slide 6: BS
2) BS \ bn. Mar. 31, Mar. 31, Sep. 30, Change 2014 2015 2015 Total assets 456.3 465.8 456.6 -9.2 Net assets 145.1 161.1 162.8 +1.7 Shareholders' equity 142.3 158.0 159.6 +1.6 (Equity ratio) 31.2% 33.9% 35.0% Interest-bearing debt 170.7 177.1 172.6 -4.5 D/E ratio 1.20 1.12 1.08 6
Slide 7: Results by Segment
(2) Results by Segment \ bn. Net Sales Operating Income H1 H2 H1 H1 H2 H1 FY 3/15 FY 3/15 FY 3/16 FY 3/15 FY 3/15 FY 3/16 Films & Functional Polymers 72.2 73.9 76.5 3.1 3.9 4.0 Industrial Materials 34.1 37.4 35.3 3.0 3.6 3.2 Healthcare 14.1 14.7 13.5 2.3 2.7 2.1 Specialty Businesses 120.4 125.9 125.
Slide 8: Films & Functional Polymers
1) Films & Functional Polymers Packaging films business experienced volume growth. Industrial films business affected by adjustments in the LC-TV market, but expenses related to new facilities and new products bottomed out. Net sales (¥ bn.) Operating income (¥ bn.) 72.2 73.9 76.5 3.1 3.9 4.0 (4.3%)
Slide 9: Industrial Materials
2) Industrial Materials Sales of high-performance fibers and functional filters favorable. Sales of airbag fabrics affected by the decline in automobile production in Japan. Net sales (¥ bn.) Operating income (¥ bn.) 37.4 3.6 34.1 35.3 (9.7%) 3.2 3.0 (9.2%) (8.7%) 17.8 17.5 2.1 1.8 16.3 17.8 1.2 1.1
Slide 10: Healthcare
3) Healthcare Sales in the bioproducts business steady, but the pharmaceutical business struggled because of the postponement of some projects. Despite steady increase in the number of applications, “Nerbridge” experienced delays in sales progress. Net sales (¥ bn.) Operating income (¥ bn.) 14.7 14.
Slide 11: Textiles and Trading
4) Textiles and Trading Sales of materials to the Middle East favorable, due in part to the improvement in market conditions and the effect of a weaker yen. Sales of acrylic fibers continued to struggle as the deterioration in market conditions in China continues. Net sales (¥ bn.) Operating income
Slide 12: II. Forecasts for FY 3/16
II. Forecasts for FY 3/16
Slide 13: Forecasts for FY 3/16
(1) Forecasts for FY 3/16 \ bn. FY 3/15 FY 3/16 (Forecasts) Change H1 H2 Amount ％ Net sales 351.3 179.7 185.3 365.0 +13.7 +3.9% Operating income 20.6 10.5 12.5 23.0 +2.4 +11.8% Ratio to sales 5.9% 5.8% 6.7% 6.3% - - Net income 8.1 5.4 6.1 11.5 +3.4 +41.7% EPS (\) 9.1 6.0 6.9 13.0 - - Depreciation 14
Slide 14: Analysis of Changes in Operating Income (Forecasts)
Analysis of Changes in Operating Income [Forecasts: FY 3/15→ FY 3/16] Depreciation Volume of yen increase (sales price) +0.8 +0.3 Others Decrease in Down in raw material prices +0.5 and fuel costs -4.2 +5.0 23.0 20.6 FY 3/15 FY 3/15 FY 3/16 FY 3/16 (¥ bn.) Naphtha price in Japan 64 47 （thousand \ /k
Slide 15: Forecasts by Segment
(2) Forecasts by Segment \ bn. Net sales Operating income FY 3/15 FY 3/16 (Forecast) FY 3/15 FY 3/16 (Forecast) H1 H2 H1 H2 Films & 146.0 76.5 76.0 152.5 7.0 4.0 4.8 8.8 Functional Polymers Industrial Materials 71.5 35.3 41.7 77.0 6.6 3.2 3.6 6.8 Healthcare 28.8 13.5 18.0 31.5 5.0 2.1 3.1 5.2 Specia
Slide 16: III. Progress of Medium-Term Plan (FY 3/15-FY 3/18)
III. Progress of Medium-Term Plan (FY 3/15-FY 3/18)
Slide 17: 2014 Medium-Term Management Plan
2014 Medium-Term Management Plan Riding a growth trajectory for achieving our future vision, sales of ¥500 billion and operating income of ¥50 billion. ROE = 8.0 % 2014 Medium-Term D/E = 1.0 Operating income (¥ bn.) Management Plan (2014 to 2017) 50 40 300 30 Strong company with 20 Growth Potential
Slide 18: Strategic Actions, Focused Areas
Strategic Actions, Focused Areas 1. Overseas Business 2. New Products ■ Production capacity increased for ■ “COSMOSHINE SRF” enzymes for diagnostic reagents, super retarder polyester film responding to the demand increase in developing countries ■ “Nerbridge” Sales activity strengthened. nerve bridg
Slide 19: New Products
New Products “COSMOSHINE SRF” ■ Protective film for polarizing plates ■ Advantages : ・Price competitiveness ・Existing production lines can be used. ・High moisture barrier ■ Expanded in Korea and Taiwan, sales increased YOY ■ A major polarizing plate manufacturer has been tested for TV application. E
Slide 20: IV. Litigation
IV. Litigation
Slide 21: 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 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