Toyobo Co., Ltd. · TSE:3101
Toyobo — FY 3/15 Earnings Presentation
24 slides from Toyobo's earnings presentation, May 12, 2015
Slide 1: Presentation to Investors
Presentation to Investors Seiji Narahara President Toyobo Co., Ltd. May 12, 2015 (Analysts’ Meeting)
Slide 2: Highlights
Highlights FY 3/15 Results Ordinary income declined, while implemented reforms in the polyester supply chain Although operating income improved in the fourth quarter, it declined slightly for the full fiscal year. In the films business, expenses increased due to the start-up of new production
Slide 3: Highlights
Highlights \ bn. FY 3/14 FY 3/15 H1 H2 H1 H2 Q3 Q4 Q3 Q4 Net sales 174.5 83.0 94.1 177.1 351.6 172.3 83.1 95.9 179.0 351.3 Operating income 11.3 4.1 5.7 9.7 21.0 9.0 3.5 8.1 11.5 20.6 Net income 5.2 1.3 1.7 3.0 8.2 2.6 3.3 2.2 5.5 8.1 3
Slide 4: I. Results for FY 3/15
I. Results for FY 3/15
Slide 5: Results for FY 3/15: PL, CF
(1) Results for FY 3/15 1)PL.CF \ bn. FY 3/15 FY 3/14 増 減 H1 H2 金額 ％ Net sales 351.6 172.3 179.0 351.3 -0.3 -0.1% Operating income 21.0 9.0 11.5 20.6 -0.4 -2.0% Ratio to sales 6 .0 % 5.2% 6.5% 5 .9 % - - Net income 8.2 2.6 5.5 8.1 0.0 -0.5% EPS (\) 9.18 2.92 6.22 9.14 - - Depreciation 14.0 7.5 7.4 1
Slide 6: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [FY 3/14 FY 3/15] Depreciation Decrease in Volume of the yen raw material Up in prices increase (sales price) Others and fuel costs -3.6 +0.4 +1.8 +0.3 +0.6 21.0 20.6 FY 3/14 FY 3/14 FY 3/15 FY 3/15 (¥ bn.) H1 H2 H1 H2 Exchange rate 99 102 100 103 117 110 （￥/
Slide 7: BS
2) BS \ bn. Mar. 31, 2014 Mar. 31, 2015 Total assets 456.3 465.8 Inventories 75.4 82.4 Net assets 145.1 161.1 Shareholders' equity 142.3 158.0 (Equity ratio) 31.2% 33.9% Minority interests 2.8 3.1 Interest-bearing debt 170.7 177.1 D/E ratio 1.20 1.12 7
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) FY 3 / 1 5 FY 3 / 1 5 FY 3 / 1 4 FY 3 / 1 4 H1 H2 H1 H2 Films & Functional Polymers 148.0 74.1 75.6 149.6 7.8 3.4 4.1 7.6 Industrial Materials 71.7 32.2 35.7 67.9 5.5 2.6 3.4 6.0 Life Science 27.3 14.1 14.6 28.7 5.1 2.3 2.7 5.0
Slide 9: Films & Functional Polymers
1) Films & Functional Polymers In the films business, sales of industrial films and packaging films increased, but operating income declined due to a temporary rise in expenses related to expansion of new product sales and the start-up of new production facilities. Sales of functional polymer “VYLON
Slide 10: Industrial Materials
2) Industrial Materials Performance of airbag fabrics was adversely impacted by higher materials costs and expenses incurred in overseas expansion. Performance of high-performance fibers and Spunbond held strong. Net sales (¥ bn.) Operating income (¥ bn.) 71.7 67.9 5.5 6.0 (7.7%) (8.9%) 37.0 35.7 3.
Slide 11: Life Science
3) Life Science Sales of new product “Nerbridge” expanded steadily. Although performance of bioproducts was favorable, conditions in the medical membrane and contract manufacturing of pharmaceuticals were challenging. Net sales (¥ bn.) Operating income (¥ bn.) 27.3 28.7 5.1 5.0 (18.8%) (17.5%) 14.3
Slide 12: Textiles
4) Textiles Sales to the Middle East held firm because of the lower value of the yen. Performance of acrylic fiber was adversely affected by the weakening of market conditions in China and increases in materials costs. Net sales Operating income (loss) (¥ bn.) (¥ bn.) 79.1 76.9 3.0 2.4 39.4 38.5 (3.
Slide 13: II. Forecasts for FY 3/16
II. Forecasts for FY 3/16
Slide 14: Forecasts for FY 3/16
(1) Forecasts for FY 3/16 \ bn. FY 3 / 1 5 FY 3 / 1 6 Change (Fo r e c ast s) Amount ％ Net sales 351.3 365.0 +13.7 +3.9% Operating income 20.6 24.0 +3.4 +16.6% Ratio to sales 5.9% 6.6% - - Profit attributable to owners of parent 8.1 12.0 +3.9 +47.8% EPS (\ ) 9.14 13.52 - - Depreciation 14.9 15.5 +0.
Slide 15: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [Forecasts: FY 3/15→ FY 3/16] Decrease in Exchange rate raw material Down Volume Others (sales price) and fuel costs in prices increase ±0.0 +1.0 +1.8 -0.9 +1.5 24.0 20.6 (¥ bn.) FY 3/15 FY 3/16 FY 3/15 FY 3/16 Naphtha price in Japan 64 60 （thousand \ /kl） Exc
Slide 16: Forecasts by Segment
(2) Forecasts by Segment \ bn. Ne t sal e s Ope r at i n g i n c o m e FY 3 / 1 5 FY 3 / 1 6 FY 3 / 1 5 FY 3 / 1 6 Films & Functional Polymers 149.6 156.0 7.6 9.4 Industrial Materials 67.9 73.5 6.0 6.4 Life Science 28.7 31.5 5.0 5.8 Specialty Businesses 246.2 261.0 18.6 21.6 O pe r at in g in c o me
Slide 17: 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 18: Positioning of the 2014 Medium-Term Management Plan
Positioning of the 2014 Medium-Term Management Plan Positioned as a time for putting Toyobo on track for reaching its future annual goals of ¥500 billion in net sales and ¥50 billion in operating income 2014 Medium-Term Operating income (¥ bn.) Management Plan (2014 to 2017) 50 40 300 30 Strong comp
Slide 19: Strategic Actions
Strategic Actions １．Accelerating overseas business development ■ Expanded production capacity for supplying reverse osmosis (RO) membranes to desalination plants in Saudi Arabia ■ Upgraded airbag fabric production plants in Thailand, China, and the United States : Obtaining certification from overse
Slide 20: New Products: COSMOSHINE SRF
New Products “COSMOSHINE SRF” ■ Develop Sales of Super Retarder Polyester Film “COSMOSHINE SRF,” Mainly for Use as a Polarizer Protective Film for LCDs ■Strengths: ・Price competitiveness ・Facilities usable without equipment enhancements ・Low moisture permeability ■ One company in South Korea and two
Slide 21: New Products: Nerbridge
New Products “Nerbridge” ■ Expanding sales as Japan’s first nerve regeneration conduit ■ Features Efficacy on the same level as nerve autografts Usable length (5cm) longest in the world (vs. 2cm in the United States) Materials dissolve and are absorbed in the body. ■ Number of medical facilities usi
Slide 22: IV. Litigation
IV. Litigation
Slide 23: 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 24: 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