Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/15 Earnings Presentation
22 slides from Toyobo's earnings presentation, Nov 5, 2014
Slide 1: Presentation to Investors
Presentation to Investors Seiji Narahara President Toyobo Co., Ltd. November 5, 2014 (Analysts’ Meeting)
Slide 2: Highlights
Highlights H1 FY 3/15 Results Operating income decreased by 20%. In the films business, expenses increased due to the start-up of new production capacity and expansion of new product sales. In addition, conditions in the packaging films business became more difficult because of unseasonable summe
Slide 3: I. Results for H1 of FY 3/15
I. Results for H1 of FY 3/15
Slide 4: Results for H1 FY 3/15 PL, CF
(1) Results for H1 FY 3/15 1)PL.CF \ bn. H1 H2 H1 Previous YoY FY 3/14 FY 3/14 FY 3/15 forecasts Amount ％ (Aug. 2014) Net sales 174.5 177.1 172.3 -2.2 -1.2% 175.0 Operating income 11.3 9.7 9.0 -2.2 -19.8% 11.0 Ratio to sales 6.5% 5.5% 5.2% － － Net income (loss) 5.2 3.0 2.6 -2.6 -49.7% 5.2 EPS (\) 5.
Slide 5: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [H1 FY 3/14 H1 FY 3/15] Appreciation of the yen Volume (sales price) decrease Up in prices +0.5 +1.0 +0.2 Decrease in raw material Others and fuel costs -2.6 +1.4 11.3 9.0 H1 FY 3/14 H1 FY 3/15 (¥ bn.) H1 FY 3/14 H1 FY 3/15 Naphtha price in Japan 65 71 （thous
Slide 6: BS
2) BS \ bn. Mar. 31, Mar. 31, Sep. 30, Change 2013 2014 2014 Total assets 447.4 456.3 451.7 -4.6 Net assets 155.5 145.1 146.6 1.5 Shareholders' equity 138.0 142.3 143.8 1.4 (Equity ratio) 30.8% 31.2% 31.8% － Interest-bearing debt 159.4 170.7 171.8 1.1 D/E ratio 1.16 1.20 1.20 － 6
Slide 7: Results by Segment
(2) Results by Segment \ bn. Net Sales Operating Income H1 H2 H1 H1 H2 H1 FY 3/14 FY 3/14 FY 3/15 FY 3/14 FY 3/14 FY 3/15 Films & Functional Polymers 7 4 .9 7 3 .1 74.1 4.8 3.0 3.4 Industrial Materials 3 4 .7 3 7 .0 32.2 2.3 3.2 2.6 Life Science 1 3 .1 1 4 .3 14.1 2.6 2.5 2.3 Specialty Businesses 1
Slide 8: Films & Functional Polymers
1) Films & Functional Polymers Expenses increased due to the start-up of new production capacity and expansion of new product sales. Conditions in the packaging films business became more difficult because of unseasonable weather conditions during the summer. Net sales (¥ bn.) Operating income (¥ bn
Slide 9: Industrial Materials
2) Industrial Materials Conditions in the airbag fabrics business deteriorated because of higher materials costs, but performance of functional cushion materials and non-woven fabrics for automobile and civil engineering construction was favorable. Net sales (¥ bn.) Operating income (¥ bn.) 3.2 37.0
Slide 10: Life Science
3) Life Science In the contract manufacturing of pharmaceuticals business, postponement of overseas market development had an adverse impact, but sales of diagnostic enzymes in Japan and overseas were favorable. Steady progress in developing “Nerbridge” sales Net sales (¥ bn.) Operating income (¥ bn
Slide 11: Textiles
4) Textiles Decrease in sales to the Middle East because of inventory adjustments in the distribution channels. Acrylic fiber sales were adversely affected by weakening of market conditions in China and higher material costs. Net sales (¥ bn.) Operating income (loss) (¥ bn.) 1.8 39.7 39.4 38.4 (4.4%
Slide 12: II. Forecasts for FY 3/15
II. Forecasts for FY 3/15
Slide 13: Forecasts for FY 3/15
(1) Forecasts for FY 3/15 \ bn. FY 3/14 FY 3/15 (Forecasts) Change H1 H2 Amount ％ Net sales 351.6 172.3 187.7 360.0 +8.4 +2.4% Operating income 21.0 9.0 13.0 22.0 +1.0 +4.7% Ratio to sales 6.0% 5.2% 6.9% 6.1% － － Net income 8.2 2.6 5.9 8.5 +0.3 +4.2% EPS (\ ) 9.2 2.9 6.6 9.6 － － Depreciation 14.0 7.
Slide 14: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [Forecasts: FY 3/14→ FY 3/15] Appreciation of the yen Volume (sales price) Up in prices increase +1.3 +1.0 +1.0 Others Decrease in -1.9 raw material and fuel costs -0.4 22.0 21.0 FY 3/14 FY 3/14 FY 3/15 FY 3/15 (¥ bn.) Naphtha price in Japan 67 68 （thousand \
Slide 15: Forecasts by Segment
(2) Forecasts by Segment \ bn. Net sales Operating income FY 3/14 FY 3/15 (Forecast) FY 3/14 FY 3/15 (Forecast) H1 H2 H1 H2 Q2 Films & 148.0 74.1 78.9 153.0 7.8 2.6 3.4 4.6 8.0 Functional Polymers Industrial Materials 71.7 32.2 39.8 72.0 5.5 1.6 2.6 3.9 6.5 Life Science 27.3 14.1 16.4 30.5 5.1 1.2 2
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: Strategic Actions
Strategic Actions １．Overseas Business ２．New Products ■ “COSMOSHINE SRF” ■ Expanded production capacity for super retarder polyester film supplying reverse osmosis membranes ■“Nerbridge” to desalination plants in Saudi Arabia conduits for nerve regeneration ■“SPACECLEAN,” ■ Established an engineering
Slide 18: New Products: COSMOSHINE SRF
New Products: “COSMOSHINE SRF” Furthering Development of Polarizer Protective Films for LCDs ■Strengths: Elimination of interference fringes Price competitiveness (polyester, melting method membranes) Usable without equipment enhancements Low moisture permeability ■Progress in marketing: Expanding s
Slide 19: New Products: Nerbridge
New Products: “Nerbridge” Further Development of Japan’s First Nerve Regeneration Conduits ■Features: ・Efficacy on the same level as nerve autografts ・Usable length (5cm) longest in world (vs. 2cm in U.S.) ・Materials dissolve and are absorbed in the body ・Usable in primary emergency hospitals ■Progr
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