UBE Corporation · TSE:4208

UBE — Q3 FY2022 Earnings Presentation

40 slides from UBE's earnings presentation, Feb 3, 2023

  1. Slide 1: Financial Results for the 3rd Quarter FY2022

    Financial Results for the 3rd Quarter FY2022 Explanatory material February 3, 2023 3rd Quarter: April - December

  2. Slide 2: FY2022 3rd Quarter Consolidated Result

    FY2022 3rd Quarter Consolidated Result

  3. Slide 3: Scope of Consolidation

    3rd Quarter of the FY2022 Scope of Consolidation End of End of Difference Item FY2021 FY2022 3Q Notes (A) (B) (B) - (A) ＋ API Corporation ＋ MAPIC Europe NV － Meiwa Plastic Industries, Ltd. － Ube Reality & Development Co., Ltd. － UBE Advanced Materials INC. － Advanced Electrolyte Technologies LLC － R

  4. Slide 4: Environmental Factors

    3rd Quarter of the FY2022 Environmental Factors FY2021 3Q FY2022 3Q Difference Item (A) (B) (B) - (A) Exchange Rate Yen/$ 111.1 136.5 25.4 CIF $/ｔ 674 830 156 Naphtha 54,000 79,900 25,900 Material Price Domestic Yen/KL Benzene (ACP) $/ｔ 977 1,073 96 Australian $/ｔ 156.5 407.5 251.0 Coal 2021年度 連結決算概

  5. Slide 5: Major P/L Items

    3rd Quarter of the FY2022 Major P/L Items (Billions of yen) FY2021 3Q FY2022 3Q Difference Percentage Item change (A) (B) (B) - (A) Net sales 476.6 368.4 (108.2) (22.7)% Operating profit 32.8 13.0 (19.9) (60.5)% Ordinary profit (loss) 30.6 (3.3) (33.9) － Profit (loss) attributable 18.1 (1.2) (19.3)

  6. Slide 6: Net Sales and Operating Profit by Segment

    3rd Quarter of the FY2022 Net Sales and Operating Profit by Segment O (Billions of yen) r * FY2021 3Q FY2022 3Q Difference Percentage Segment (A) (B) (B) - (A) change d Specialty Products 44.9 47.4 2.6 5.7% i Net sales Polymers & Chemicals 190.4 225.2 34.8 18.3% nMachinery 70.8 69.3 (1.5) (2.1)% aOt

  7. Slide 7: Analysis - Total

    3rd Quarter of the FY2022 Analysis － Total (Billions of yen) Net Sales Qualitative Information 600.0 Net sales: Down 476.6 (108.2) Specialty Products 2.6 • Cement-related: Business split and transferred to an equity-method affiliate 368.4 Polymers & Chemicals 34.8 • Polymers & Chemicals: Higher sale

  8. Slide 8: Analysis - Specialty Products

    3rd Quarter of the FY2022 Analysis － Specialty Products (Billions of yen) Net Sales Qualitative Information Net sales: Up 60.0 +2.6 47.4 • Polyimides: Strong sales of varnish for organic EL panels despite the 44.9 negative impact of inventory adjustments of the COF for displays • Separation membrane

  9. Slide 9: Analysis - Polymers & Chemicals

    3rd Quarter of the FY2022 Analysis － Polymers & Chemicals (Billions of yen) Net Sales Qualitative Information 250.0 225.2 Net sales: Up +34.8 • Nylon polymers: Higher sales prices due to higher raw material 190.4 Performance Polymers prices, etc., despite a slowdown in demand for food packaging film

  10. Slide 10: Analysis - Machinery

    3rd Quarter of the FY2022 Analysis － Machinery (Billions of yen) Net Sales Qualitative Information 80.0 Net sales: Down 70.8 69.3 (1.5) • Molding machine: Increased sales volume due to recovery of orders from automotive industry • Industrial machines: Large projects such as bulk handling machines fo

  11. Slide 11: Analysis - Others

    3rd Quarter of the FY2022 Analysis － Others (Billions of yen) Net Sales Qualitative Information 60.0 +12.9 50.6 Net sales: Up 37.7 • Pharmaceutical: Strong sales of both drugs developed by UBE and those manufactured under contract Pharmaceutical 1.6 30.0 • Power: Sales of electricity supply to cemen

  12. Slide 12: Operating Profit - Profit attributable to owners of parent

    3rd Quarter of the FY2022 Operating Profit － Profit attributable to owners of parent (Billions of yen) FY2021 3Q FY2022 3Q Difference Item (A) (B) (B) - (A) Operating profit 32.8 13.0 (19.9) Non-operating income (expenses) (2.2) (16.3) (14.1) Net interests expenses 0.2 0.8 0.5 Share of loss of entit

  13. Slide 13: Consolidated Balance Sheet

    3rd Quarter of the FY2022 Consolidated Balance Sheet (Billions of yen) End of FY2021 End of FY2022 3Q Difference Item (A) (B) (B) - (A) Current assets 394.7 290.5 (104.1) Fixed assets 443.1 457.4 14.3 Total assets 838.0 748.1 (89.8) Interest-bearing debt 241.8 222.7 (19.1) Other liabilities 202.1 13

  14. Slide 14: Consolidated Statements of Cash Flows

    3rd Quarter of the FY2022 Consolidated Statements of Cash Flows (Billions of yen) FY2021 Item FY2022 3Q 3Q Profit before income taxes 4.2 Depreciation and amortization 18.9 Share of loss of entities accounted for using equtiy method 15.1 A.Cash flows from operating activities 16.8 5.1 Gain on Change

  15. Slide 15: FY2022 Consolidated Forecasts

    FY2022 Consolidated Forecasts 15

  16. Slide 16: Scope of Consolidation

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Scope of Consolidation End of End of Difference Item FY2021 FY2022 Notes (A) (B) （B) - （A) ＋ API Corporation ＋ MAPIC Europe NV ＋ UBE Corporation America Inc. － Meiwa Plastic Industries, Ltd. － Ube Reality & Development Co., Ltd. － UBE Advanced Materials IN

  17. Slide 17: Environmental Factors

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Environmental Factors FY2021 FY2022 Difference Item (A) (B) (B) - (A) 135.0 Exchange Rate Yen/$ 112.4 22.6 [130.0] 790 CIF $/ｔ 702 88 Naphtha [680] 75,400 56,700 18,700 Material Price Domestic Yen/KL [63,400] Benzene 1,020 $/ｔ 990 30 (ACP) [865] 403.5 Aust

  18. Slide 18: Major P/L Items

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Major P/L Items (Billions of yen) FY2021 FY2022 Difference Percentage Item (A) (B) (B) - (A) change Net sales 655.3 506.0 (149.3) (22.8)% Operating profit 44.0 20.0 (24.0) (54.6)% Ordinary profit (loss) 41.5 (6.0) (47.5) － Profit (loss) attributable to own

  19. Slide 19: Net Sales and Operating profit by Segment

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Net Sales and Operating profit by Segment (Billions of yen) Segment * FY2021 FY2022 Difference Percentage (A) (B) (B) - (A) change Specialty Products 60.8 65.0 4.2 6.9% Net sales Polymers & Chemicals 260.0 301.0 41.0 15.7% Machinery 97.0 101.0 4.0 4.1% Oth

  20. Slide 20: Analysis - Total

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Analysis － Total (Billions of yen) Net sales Revisions from the previous earnings forecasts published on October 28, 2022 800.0 655.3 (149.3) Net sales: Downturn ［547.0 → 506.0, (41.0)］ Specialty Products 4.2 506.0 Polymers & Chemicals 41.0 • Specialty Pro

  21. Slide 21: Analysis - Specialty Products

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Analysis － Specialty Products (Billions of yen) Net sales Revisions from the previous earnings forecasts published on October 28, 2022 90.0 +4.2 Net sales: Downturn ［69.0 → 65.0, (4.0)］ 65.0 60.8 • Lower sales volumes separators and phenol resins • Strong

  22. Slide 22: Analysis - Polymers & Chemicals

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Analysis － Polymers & Chemicals (Billions of yen) Net sales Revisions from the previous earnings forecasts published on October 28, 2022 400.0 +41.0 301.0 Net sales: Downturn ［340.0 → 301.0, (39.0)］ 260.0 Performance Polymers • Lower sales volumes of nylon

  23. Slide 23: Analysis - Machinery

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Analysis － Machinery (Billions of yen) Net sales Revisions from the previous earnings forecasts published on October 28, 2022 140.0 +4.0 Net sales: No revision 97.0 101.0 70.0 Operating profit: No revision 0.0 4.1% Increased FY2021 FY2022 Operating profit

  24. Slide 24: Analysis - Others

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Analysis － Others (Billions of yen) Net sales Revisions from the previous earnings forecasts published on October 28, 2022 90.0 +20.8 75.0 Net sales: Upturn (73.0 → 75.0, +2.0) 54.2 • Consolidation of API Corporation Pharmaceutical 5.4 45.0 Power 13.1 etc

  25. Slide 25: Operating Profit - Profit attributable to owners of parent

    2022年度 FY2022 連結業績予想 Consolidated Forecasts Operating Profit － Profit attributable to owners of parent (Billions of yen) FY2021 FY2022 Difference Item (A) (B) (B) - (A) Operating profit 44.0 20.0 (24.0) Non-operating income (expenses) (2.5) (26.0) (23.5) Share of loss of entities accounted for using

  26. Slide 26: Reference

    Reference

  27. Slide 27: Difference of Net sales

    Reference: FY2022 Consolidated Forecast Difference of Net sales （Billions of yen） Previous Revised forecasts forecasts Difference Segment 2022/10/28 2023/2/3 Major factors (A) (B) (B) - (A) Specialty Products 69.0 65.0 (4.0) Performance Polymers & Chemicals (38.0) Polymers & Chemicals 340.0 301.0 (3

  28. Slide 28: Difference of Operating profit

    Reference: FY2022 Consolidated Forecast Difference of Operating profit （Billions of yen） Previous Revised forecasts forecasts Difference Segment Major factors 2022/10/28 2023/2/3 (A) (B) (B) - (A) Specialty Products 13.0 13.0 － Performance Polymers & Chemicals (9.5) Polymers & Chemicals 12.5 4.0 (8.

  29. Slide 29: Analysis of Operating profit by Segment

    Reference: 3rd Quarter of the FY2022 Analysis of Operating profit by Segment （Billions of yen） Operating profit Segment FY2021 3Q FY2022 3Q Difference Fixed cost Price Volume and others (A) (B) (B) - (A) *1 *2 Specialty Products 8.8 8.5 (0.3) (0.5) 0.1 0.1 Polymers & Chemicals 17.8 3.3 (14.6) (3.1)

  30. Slide 30: Progress of Major P/L Items

    Reference: 3rd Quarter of the FY2022 Progress of Major P/L Items (Billions of yen) FY2021 Results (A) FY2022 Forecasts (B) Difference (B) - (A) Item 3Q 3Q 3Q Progress Progress 476.6 368.4 Net sales 655.3 506.0 (149.3) (108.2) 72.7% 72.8% 32.8 13.0 Operating profit 44.0 20.0 (24.0) (19.9) 74.6% 64.9%

  31. Slide 31: Net Sales

    Reference: 3rd Quarter of the FY2022 Net Sales (Billions of yen) FY2022 Full-year Segment Progress 1Q 2Q 3Q 4Q Total (forecast) Specialty Products 15.3 16.5 15.6 － 47.4 65.0 72.9% Polymers & Chemicals 71.4 78.0 75.7 － 225.2 301.0 74.8% Machinery 20.3 24.9 24.0 － 69.3 101.0 68.6% Others 15.6 17.8 17.

  32. Slide 32: Operating Profit

    Reference: 3rd Quarter of the FY2022 Operating Profit (Billions of yen) FY2022 Full-year Segment Progress 1Q 2Q 3Q 4Q Total (forecast) Specialty Products 2.8 2.7 3.0 － 8.5 13.0 65.5% Polymers & Chemicals 1.9 0.5 0.9 － 3.3 4.0 82.0% Machinery 0.4 0.9 1.4 － 2.6 4.5 58.0% Others 0.7 0.6 0.5 － 1.7 2.5 6

  33. Slide 33: 3Q on 2Q - Net Sales

    Reference: 3rd Quarter of the FY2022 3Q on 2Q － Net Sales （Billions of yen） FY2022 FY2022 Difference Segment 2Q 3Q Major factors (A) (B) (B) - (A) Specialty Products 16.5 15.6 (0.8) Performance Polymers & Chemicals (2.8) Polymers & Chemicals 78.0 75.7 (2.3) Elastmer 0.5 Machinery 24.9 24.0 (0.9) Pha

  34. Slide 34: 3Q on 2Q - Operating Profit

    Reference: 3rd Quarter of the FY2022 3Q on 2Q － Operating Profit （Billions of yen） FY2022 FY2022 Difference Segment 2Q 3Q Major factors (A) (B) (B) - (A) Specialty Products 2.7 3.0 0.3 Polymers & Chemicals 0.5 0.9 0.4 Elastmer 0.3 etc. Machinery 0.9 1.4 0.5 Others 0.6 0.5 (0.1) Adjustment (0.5) (1.3

  35. Slide 35: Net Sales and Operating Profit by Business Portfolio

    Reference: 3rd Quarter of the FY2022 Net Sales and Operating Profit by Business Portfolio (Billions of yen) FY2022 FY2022 full-year Business portfolio 3Q (forecast) Progress (A) (B) Specialty business 100.6 145.0 69.4% Net sales Basic business 182.5 240.0 76.0% Machinery business 69.3 101.0 68.6% Ot

  36. Slide 36: Mitsubishi UBE Cement

    Reference: FY2022 Consolidated Forecast Mitsubishi UBE Cement (Billions of yen) ■Major P/L Items ■Environmental Factors Mitsubishi UBE Cement Corporation and Consolidated Subsidiaries FY2022 FY2022 FY2022 FY2022 フリーレイアウトスペース Item 3Q Result Full-year Forecast Item 3Q Full-year Result Forecast Net Sal

  37. Slide 37: Consolidated Key Indicators

    Reference: 3rd Quarter of the FY2022 Consolidated Key Indicators (Billions of yen) FY2022 full-year FY2021 Item FY2021 3Q FY2022 3Q (forecast) full-year Capital investment 23.6 19.3 39.0 39.6 Depreciation and amortization 27.1 18.9 24.0 36.5 Research and development expenses 8.5 7.6 11.0 11.8 Adjust

  38. Slide 38: Consolidated Major Subsidiaries

    Reference: 3rd Quarter of the FY2022 Consolidated Major Subsidiaries (Billions of yen) Difference of Net Sales operating Subsidiaries Business profit from FY2022 3Q FY2021 3Q Manufacture and sales of nylon, caprolactam, ammonium sulfate and UBE Corporation Europe, S.A. Unipersonal fine chemical prod

  39. Slide 39: IR Calendar

    Reference: IR Calendar Announcement of FY2022 Business Results and FY2023 Management Overview Briefing ➢ Announcement of FY2022 Business Results • May 12, 2023 15:00 ➢ Telephone Conference for FY2022 Business Results • May 12, 2023 18:00 ー 19:00 ➢ FY2023 Management Overview Briefing • May 23, 2023 1

  40. Slide 40: Forward-looking statements disclaimer

    This presentation material contains forward-looking statements concerning UBE’s future plans, strategies, and performance. These forward-looking statements are not historical facts; rather, they represent assumptions and beliefs based on economic, financial, and competitive conditions currently obse

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