Unicharm Corporation · TSE:8113
Unicharm — H1 2016 Earnings Presentation
21 slides from Unicharm's earnings presentation, Aug 5, 2016
Slide 1: First Half of Fiscal Year Ending December 31, 2016 Financial Performance
First Half of Fiscal Year Ending December 31, 2016 Financial Performance Unicharm Investor Meeting Presentation Materials August 5, 2016 Takahisa Takahara President and CEO Unicharm Corporation Projections stated herein include those based on the Company’s assumptions, forecasts and plans as of Augu
Slide 2: First Half of Fiscal Year Ending December 31, 2016 Financial Performance Summary
First Half of Fiscal Year Ending December 31, 2016 Financial Performance Summary
Slide 3: Financial Performance Summary
1H of Fiscal Year Ending December 31, 2016 Financial Performance Summary Operating profit records surpassed for nine consecutive fiscal periods Net sales -8.33 billion JPY (-2.3％) – Approx. 5% increase in income excluding exchange effects Operating profit +1.07 billion JPY (+3.1％) – Approx. 7% i
Slide 4: Consolidated account highlights
Year-on-year: 2.3% net sales decrease, 3.1% operating income increase Public achievement rates: 96.0% net sales, 96.7% operating profit Consolidated account highlights (Millions of yen) (Reference) 1H of FY Ending 1H of FY Ended Difference 1H of FY Ending Achievement Difference* Dec 31, 2016 Dec 3
Slide 5: Consolidated net sales fluctuation
The appreciation of the yen had a negative impact, but overseas, local currency base grew by approx. 3% In Japan, driving forces are Health Care and Feminine Care businesses. Consolidated net sales fluctuation (100 millions of yen) Exchange effects: -25.5 billion JPY +109 -119 3,588 -2 -53 -19 3,5
Slide 6: Consolidated operating income fluctuation
Profit increase due to effects of material cost fluctuations and product mixing improvement Consolidated operating income fluctuation (100 millions of yen) Selling and administrative Gross profit rate expense rate 2.1%P improvement 1.6%P increase +15 -37 +60 357 347 -28 +1 +1 -2 Sales Advertising
Slide 7: Geographical Segment Information
In Japan, steady growth from sales expansion of high value-added products In Asia, active investment to expand the market Geographical Segment Information (Millions of yen) 1H of FY Ending 1H of FY Ended Dec31, 2016 Dec31, 2015 Net sales Operating income Operating income Operating income Differenc
Slide 8: Rate changes by currency
Effects of exchange fluctuations: Net sales -25.5 billion JPY, operating profit -2.5 billion JPY (Breakdown of operating profit: Conversion -1.5 billion JPY, rise in purchase price -1 billion JPY) Rate changes by currency Exchange rate for Exchange rate for Currency 1H of FY 2016 1H of FY 2015 Cha
Slide 9: Fiscal Year Ending December 31, 2016 Earnings Forecast
Fiscal Year Ending December 31, 2016 Earnings Forecast
Slide 10: Consolidated earnings forecast
For the FY ending Dec. 31, 2016, looking back at effects of yen appreciation and reviewing the conversion rate Net sales 720 billion JPY (2.5% decrease), operating profit 83 billion JPY (3.8% increase) Consolidated earnings forecast (Millions of yen) (Reference) FY Ending FY Ended Difference Previ
Slide 11: Earnings forecast revision details
FY ending Dec. 31, 2016 Earnings forecast revision details Conversion rate revision for all currencies FY Ending FY Ending (Ref.) FY Ending Dec. 31, 2016 Dec. 31, 2016 Difference (Ref.) Primary Currency Dec. 31, 2016 Difference(%) Revised Rate Previous Rate (%) (JPY) (JPY) (JPY) USA (USD) 105.90 1
Slide 12: Consolidated earnings forecast graph (quarterly base)
For 3Q, improvement of profitability will progress with a focus on Asia For 4Q, maintain high profitability Consolidated earnings forecast graph (quarterly base) (100 millions of yen) Previous term Operating income rate Current term fluctuations 9.6% 11.7% 11.5% 14.3% 8.7% 9.7% 8.9% 13.9% 1,775 1,
Slide 13: FY Ending Dec. 31, 2016 Shareholder Return Policy
FY Ending Dec. 31, 2016 Shareholder Return Policy
Slide 14: Shareholder Return Policy
With a 50% total return ratio policy, forecast of increased dividends for 21 consecutive periods and 56% total return ratio Shareholder Return Policy (100 millions of yen) Dividends Stock buy-back Total amount of profit return Total return ratio 300 55.6% 56.0% 60.0% 53.9% 51.4% 49.5% 250 47.5% 47
Slide 15: Stock buy-back acquisition graph
Swiftly acquire stocks through buy-back based on cash conditions Acquisition forecast for FY 2016 is 14 billion JPY (max.), 8 million stocks (max.) Stock buy-back acquisition graph (100 millions of yen) 160 140 140 130 120 120 110 100 90 76 80 80 65 60 60 50 50 50 40 20 0 '06/3 '07/3 '08/3 '09/3 '
Slide 16: Steady and continual dividend payments
Steady and continual dividend payments Dividends per share (JPY) 18.0 16 16.0 14.8 Plan for increased dividends 14.0 12.7 12.73 for 21 consecutive periods 12.0 11.3 10.7 10.0 9.3 7.7 8.0 6.0 6.0 4.9 5.1 3.7 4.0 2.0 0.0 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12 '15/12 '16/12E * *
Slide 17: Reference materials
unicharm NOLA&DOLA Reference materials
Slide 18: Segment information by business
[Ref.] Pet Care business: Increase in income/profit in Japan via brand enhancement, etc. and income/profit improvement overseas via shift to high value-added products overseas Segment information by business (Millions of yen) 1H of FY Ending 1H of FY Ended Dec31, 2016 Dec31, 2015 Net sales Operati
Slide 19: Overseas net sales ratio: 59.3%
[Ref.] Overseas net sales ratio: 59.3% (62.0% excluding exchange effects) Japan / overseas sales (Billions of yen) 1000 65.6% 70% 63.3% 58.5% 59.3% 800 60% 51.7% 50.3% 48.0% 44.1% 50% 42.0% 43.1% 44.2% 600 37.2% 40% 34.0% 31.2% 400 30% 20% 200 10% 0 0% '10/2Q '11/2Q '12/2Q '13/2Q '14/2Q* '15/2Q '1
Slide 20: Operating profit ratio by location
[Ref.]In Japan, improvement of product mixing with high value-added products In Asia, active marketing investment ahead of the market Operating profit ratio by location 20.0% Japan Asia Other Consolidated 15.3% 15.2% 15.6% 15.0% 13.9% 14.0% 13.8% 13.9% 13.0% 12.8% 12.4% 12.0% 12.0% 11.9% 12.4% 12.
Slide 21: Thank you
Thank you Unicharm constantly provides the world’s No.1 and unprecedented products and services to everybody around the globe, and delivers comfort, inspiration and satisfaction. Copyright (c) Unicharm Corporation. All rights reserved. 21