Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/12 Earnings Presentation
27 slides from Toyobo's earnings presentation, Nov 8, 2011
Slide 1: Presentation to Investors
Presentation to Investors Ryuzo Sakamoto President Toyobo Co., Ltd. November 8, 2011 (Analysts’ Meeting)
Slide 2: Highlights
Highlights H1 FY 3/12 Results Despite the effects of the earthquake, operating income was above our last forecast and net income moved into the black. Environment and life science businesses reported strong performances Introduction of new products LCD-related business was influenced by productio
Slide 3: Contents
Contents I Results for H1 of FY 3/12 II Forecasts for FY 3/12 III Progress of Medium-Term Plan (FY 3/11-FY 3/14) Ⅳ Litigation Appendix
Slide 4: I. Results for H1 of FY 3/12
I. Results for H1 of FY 3/12
Slide 5: (1) Results for H1 of FY 3/12
(1) Results for H1 of FY 3/12 \ bn. H1 H2 H1 Previous YoY FY 3/11 FY 3/11 FY 3/12 forecasts Q1 Q2 Amount ％ (Aug. 2011) Net sales 169.7 170.8 87.2 90.9 178.1 +8.4 +4.9% 170.0 Operating income 10.9 9.9 5.7 5.4 11.0 +0.1 +1.3% 10.0 Ratio to sales 6.5% 5.8% 6.5% 5.9% 6.2% － － - Net income (loss) -1.9 6.
Slide 6: (2) Financial Position
(2) Financial Position \ bn. Mar. 31, Mar. 31, Sep. 30, Change 2010 2011 2011 Total assets 438.4 443.5 437.9 -5.7 Inventories 62.5 66.0 74.0 +8.0 Net assets 131.1 149.8 144.7 -5.1 Shareholders' equity 107.1 125.8 127.5 +1.8 (Equity ratio) 24.4% 28.4% 29.1% － Minority interests 24.0 24.0 17.2 -6.8 In
Slide 7: (3) Analysis of Changes in Operating Income
(3) Analysis of Changes in Operating Income Appreciation of the yen Increase in [H1 FY 3/11 H1 FY 3/12] (sales price) raw material -1.4 and fuel costs -3.6 Others Volume -0.8 increase Rise +3.3 in prices (included +2.6 product mix +1.5） 10.9 11.0 H1 H1 H1 FY 3/11 H1 FY 3/12 (¥ bn.) FY 3/11 FY 3/12
Slide 8: (4) Results by Segment
(4) Results by Segment \ bn. Net Sales Operating Income H1 H2 H1 H1 H2 H1 FY 3/11 FY 3/11 FY 3/12 FY 3/11 FY 3/11 FY 3/12 Films & Functional Polymers 64.0 62.9 70.8 6.9 5.6 6.5 Industrial Materials 34.5 36.9 34.3 2.4 2.5 2.4 Life Science 14.9 16.5 15.6 1.7 2.0 1.6 Specialty Businesses 113.5 116.3 12
Slide 9: 1) Films & Functional Polymers
1) Films & Functional Polymers Made progress toward product portfolio improvements Weakening in demand of films for flat panel displays Volume of industrial adhesive VYLON increased in Asia Net sales (¥ bn.) Operating income (¥ bn.) 70.8 64.0 62.9 6.9 (10.8%) 6.5 (9.2%) 5.6 34.7 (8.9%) 31.2 3.2 2.9
Slide 10: 2) Industrial Materials
2) Industrial Materials Steady growth for environmental products, such as air purification filters Automotive-related products were affected by the earthquake Expansion of sales in VOC emission treatment equipment overseas Net sales (¥ bn.) Operating income (¥ bn.) 36.9 34.5 34.3 2.5 2.4 2.4 (6.9%)
Slide 11: 3) Life Science
3) Life Science Increase in sales of diagnostic enzymes Demand for the contract manufacturing of pharmaceuticals and medical membranes remained firm Volume of intermediate medicines decreased Net sales (¥ bn.) Operating income (¥ bn.) 16.5 15.6 14.9 2.0 1.7 (12.3%) 1.6 (11.4%) (10.4%) 8.1 8.2 1.1 1.
Slide 12: 4) Textiles
4) Textiles Increase in sales of functional textiles for sportswear and inner wear Profit of fabrics for thoub (traditional Arab clothing) was affected by the appreciation of the yen Demand of unique acrylic fibers firm Net sales (¥ bn.) Operating income (loss) (¥ bn.) 44.3 42.6 44.2 23.6 23.0 0.9 0
Slide 13: II. Forecasts for FY 3/12
II. Forecasts for FY 3/12
Slide 14: (1) Forecasts for FY 3/12
(1) Forecasts for FY 3/12 \ bn. FY 3/11 FY 3/12 (Forecasts) Change H1 H2 Amount ％ Net sales 340.6 178.1 176.9 355.0 +14.4 +4.2% Operating income 20.9 11.0 11.0 22.0 +1.1 +5.3% Ratio to sales 6.1% 6.2% 6.2% 6.2% － － Net income 4.2 5.2 3.8 9.0 +4.8 +116.6% EPS (\ ) 5.5 5.9 4.3 10.2 － － Depreciation 19
Slide 15: (2) Analysis of Changes in Operating Income
(2) Analysis of Changes in Operating Income [Forecasts: FY 3/11 → FY 3/12] Appreciation of the yen Increase in (sales price) raw material and fuel costs -1.8 -6.0 Others Volume -0.3 increase Rise +5.0 in prices (included +4.2 product mix +2.5） 20.9 22.0 FY 3/11 FY 3/11 FY 3/12 FY 3/12 (¥ bn.) Naphth
Slide 16: (3) Forecasts by Segment
(3) Forecasts by Segment \ bn. Net sales Operating income FY 3/11 FY 3/12 (Forecast) FY 3/11 FY 3/12 (Forecast) H1 H2 H1 H2 Films & 127.0 70.8 67.2 138.0 12.5 6.5 5.8 12.3 Functional Polymers Industrial Materials 71.5 34.3 37.7 72.0 4.9 2.4 2.8 5.2 Life Science 31.4 15.6 18.4 34.0 3.7 1.6 2.1 3.7 Sp
Slide 17: III. Progress of Medium-Term Plan (FY 3/11-FY 3/14)
III. Progress of Medium-Term Plan (FY 3/11-FY 3/14)
Slide 18: (1) Targets for FY 3/14
(1) Targets for FY 3/14 Our targets: “The category leader for providing new value in the environment, life science, and high-function products fields” \ bn. FY 3 / 1 1 FY 3 / 1 2 FY 3 / 1 4 Fo r e c ast P lan Net sales 340.6 355.0 400.0 Specialty businesses 229.8 244.0 300.0 Com position ratio 67% 6
Slide 19: (2) Action Plan
(2) Action Plan Action Plan 1) Capital investment (Alliances and M&A) 2) Overseas business development 3) Improvement in the product portfolio 19
Slide 20: (3) Progress (Excerpted version)
(3) Progress (Excerpted version) Segments Progress (Start-up) Films & Install Functional Polymers ・Hybrid-type equipment for the production of PET film (H2 FY 3/14) ・Coater equipment for process sheets of electronics parts (H2 FY 3/12) ・Modified polyolefin adhesives (H2 FY 3/12) ・Manufacturing b
Slide 21: IV. Litigation
IV. Litigation
Slide 22: 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 23: Appendix
Appendix
Slide 24: Appendix: Business Fields
Appendix: Business Fields Electronics & Fields: Automotive Information Environment Life Science Lifestyle & Display Safety Business Segments • PET films for flat panel displays • PET films for ・Packaging Films & •Engineering plastics solar cells films Functional •Biomass high-melting-point polyamide
Slide 25: Action Plan and Progress-1
Action Plan and Progress-1 Action Plan Progress (Start-up Date) 1) Capital investment (Alliances and M&A) • Hybrid-type equipment for the production of PET film for industrial and packaging use (H1 FY 3/14) • Modified polyolefin adhesives (H2 FY 3/12) • High-melting-point biomass polyamides (H2
Slide 26: Action Plan and Progress-2
Action Plan and Progress-2 Action Plan Progress 3) Improvement in • Industrial PET films for use in touch panels, the product portfolio solar cell backsheets, and other products • Biomass high-melting-point polyamide resin for LED reflectors • A new type of shrink films • A recyclable coated fab
Slide 27: 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