Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/13 Earnings Presentation
25 slides from Toyobo's earnings presentation, Nov 6, 2012
Slide 1: Presentation to Investors
Presentation to Investors Ryuzo Sakamoto President Toyobo Co., Ltd. November 6, 2012 (Analysts’ Meeting)
Slide 2: Highlights
Highlights H1 FY 3/13 Results Reached targets for the interim period, despite weakness in the first quarter, because of recovery in the second quarter. Moving onto the intended growth path. Recovery in unit volume in LCD films. Packaging films are bottoming out because of the positive effects of n
Slide 3: Contents
Contents I Results for H1 of FY 3/13 II Forecasts for FY 3/13 III Progress of Medium-Term Plan (FY 3/11-FY 3/14) Ⅳ Litigation
Slide 4: I. Results for H1 of FY 3/13
I. Results for H1 of FY 3/13
Slide 5: Results for H1 of FY 3/13: P&L and cash flow
(1) Results for H1 of FY 3/12 1)PL.CF \ bn. H1 H2 H1 Previous YoY FY 3/12 FY 3/12 FY 3/13 forecasts Q1 Q2 Amount ％ (Aug. 2012) Net sales 178.1 171.4 83.1 88.1 171.1 -7.0 -3.9% 175.0 Operating income 11.0 7.3 2.2 5.4 7.6 -3.4 -30.9% 7.0 Ratio to sales 6.2% 4.2% 2.7% 6.1% 4.5% － － Net income (loss) 5.
Slide 6: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [H1 FY 3/12 H1 FY 3/13] Decrease in Q1 Q2 Q3 Q4 Q1 Q2 FY 3/12 FY 3/12 FY 3/12 FY 3/12 FY 3/13 FY 3/13 Changing in raw material Naphtha price depreciation and fuel costs in Japan 59 55 52 54 61 51 （thousand \ /kl） methods +1.0 Exchange rate +1.4 82 78 78 79 80
Slide 7: Balance Sheet
2) BS \ bn. Mar. 31, Mar. 31, Sep. 30, Change 2011 2012 2012 Total assets 443.5 437.8 429.4 -8.4 Inventories 66.0 77.6 70.8 -6.7 Net assets 149.8 147.7 146.9 -0.8 Shareholders' equity 125.8 130.6 129.6 -1.0 (Equity ratio) 28.4% 29.8% 30.2% － Minority interests 24.0 17.2 17.3 +0.2 Interest-bearing de
Slide 8: Results by Segment
(2) Results by Segment \ bn. Net Sales Operating Income H1 H2 H1 H1 H2 H1 FY 3/12 FY 3/12 FY 3/13 FY 3/12 FY 3/12 FY 3/13 Films & Functional Polymers 73.3 65.2 70.5 6.1 2.5 4.3 Industrial Materials 34.3 36.9 35.0 2.4 2.9 2.6 Life Science 13.1 13.4 12.6 2.0 2.1 1.6 Specialty Businesses 120.7 115.5 11
Slide 9: Films & Functional Polymers
1) Films & Functional Polymers In the industrial films business, unit demand for LCD-use films is recovering. A downturn in sales of packaging films is bottoming out because of the positive impact of new product introductions, despite lingering effects of the decline in demand. Net sales (¥ bn.) Ope
Slide 10: Industrial Materials
2) Industrial Materials Airbag fabrics are showing firm performance because of the recovery in automobile production. VOC emissions treatment equipment is being adversely affected by investment project delays in China and Korea. Net sales (¥ bn.) Operating income (¥ bn.) 36.9 35.0 34.3 2.9 (7.9%) 2.
Slide 11: Life Science
3) Life Science Bioproducts and membranes for medical use declined in volume terms in the first quarter, but demand is firm at present. Approval applications have been filed for newly developed medical devices for the regeneration of damaged nerves. Net sales (¥ bn.) Operating income (¥ bn.) 13.1 13
Slide 12: Textiles
4) Textiles A major decline in profits in the first quarter was reported due to inventory valuation losses. The nylon business experienced tough operating conditions, but sales of sports apparel are steady. Net sales (¥ bn.) Operating income (loss) (¥ bn.) 44.2 43.8 40.8 0.9 (1.9%) 23.0 21.4 0.2 0.2
Slide 13: II. Forecasts for FY 3/13
II. Forecasts for FY 3/13
Slide 14: Forecasts for FY 3/13
(1) Forecasts for FY 3/12 \ bn. FY 3/11 FY 3/12 (Forecasts) Change H1 H2 Amount ％ Net sales 349.5 171.1 178.9 350.0 +0.5 +0.1% Operating income 18.3 7.6 10.4 18.0 -0.3 -1.7% Ratio to sales 5.2% 4.5% 5.8% 5.1% － － Net income 4.6 2.7 3.7 6.4 +1.8 +39.5% EPS (\ ) 5.2 3.1 4.2 7.2 － － Depreciation 19.5 6
Slide 15: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [Forecasts: FY 3/12→ FY 3/13] Decrease in Changing in raw material depreciation and fuel costs Appreciation methods +0.5 of the yen (sales price) +3.0 +0.0 Down in prices Volume -0.3 decrease Others -2.0 -1.5 18.3 18.0 FY 3/12 FY 3/12 FY 3/13 FY 3/13 (¥ bn.) N
Slide 16: Forecasts by Segment
(2) Forecasts by Segment \ bn. Net sales Operating income H1→H2 FY 3/12 FY 3/13 (Forecast) FY 3/12 FY 3/13 (Forecast) FY 3/13 H1 H2 H1 H2 Change.% Q2 Films & 138.4 70.5 72.9 143.4 8.6 2.6 4.3 5.2 9.5 Functional Polymers Industrial Materials 71.2 35.0 38.0 73.0 5.3 1.6 2.6 2.8 5.4 Life Science 26.6 1
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: Targets for FY 3/14 (MG90)
(1) Targets for FY 3/14 Management policy: “Continual reform of the business portfolio” \ bn. FY 3 / 1 3 FY 3 / 1 4 Fo r e c ast P lan N et s a l es 350.0 360.0 S pe c ialt y bu sin e sse s 242.0 252.0 Co mpo sit io n r at io 69% 70% Opera ti ng i ncom e 18.0 (5 .1 % ) 27.0 （ 7 . 5 % ） Opera ti ng i
Slide 19: Action Plan
(2) Action Plan 1) Capital investment (Alliances and M&A) 2) Overseas business development 3) Improvement in the product portfolio 19
Slide 20: Action Plan and Progress
(3) Action Plan and Progress １） Capital investment • Hybrid-type equipment for the production of PET film for industrial and packaging use (H2 FY 3/14) (Alliances and M&A) ・ Contract manufacturing pharmaceuticals (H2 FY 3/13) 2) Overseas business ・Manufacturing and marketing company for “VYLON” in T
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: Specialty Businesses and Market Fields
Specialty Businesses and Market Fields Electronics & Fields: Automotive Information Environment Life Science Lifestyle & Display Safety Business Segments • PET films for optical uses • For photovoltaic systems ・Packaging Films & •Engineering plastics films Functional •Biomass high-melting-point Poly
Slide 25: 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