Unicharm Corporation · TSE:8113
Unicharm — FY2016 Earnings Presentation
32 slides from Unicharm's earnings presentation, Feb 15, 2017
Slide 1: Unicharm Presentation Materials for Investor Meeting, FY Ended December 31, 2016
Fiscal Year Ended December 31, 2016 Unicharm Presentation Materials for Investor Meeting February 15, 2017 Takahisa Takahara President and CEO Unicharm Corporation Projections stated herein include those based on the Company’s assumptions, forecasts and plans as of February 15, 2017. Therefore, actu
Slide 2: Financial Performance Summary: Fiscal Year Ended December 31, 2016
Financial Performance Summary: Fiscal Year Ended December 31, 2016 ◆ Acronyms used in this material BC： Baby Care Business FC： Feminine Care Business HC： Health Care Business C&F：Clean & Fresh Business PC： Pet Care Business
Slide 3: Financial Results Summary
Fiscal Period Year Ended Dec. 31, 2016 Financial Results Summary 3.8% net sales decrease, 2.1% operating income decrease Approx. 4% increase in income and 3% increase in operating profit excluding exchange effects Ordinary profit 71.8 billion JPY, current profit 44.1 billion JPY Both reached n
Slide 4: Consolidated account highlights
Approx. 4% increase in real net sales, approx. 3% increase in operating profit Ordinary income 71.8 billion JPY, net income 44.1 billion JPY Improved record-high results Consolidated account highlights (Millions of yen) (Reference) FY Ended FY Ended Difference FY Ending Achievement Difference Dec
Slide 5: Consolidated net sales
The appreciation of the yen had a negative impact, but overseas, local currency base grew by approx. 3% In Japan, driving forces are HC, FC and C&F businesses. Consolidated net sales (100 millions of yen) +157 -55 +54 +87 +61 -582 7,387 7,109 FY Ended Japan China India Asia Others Exchange FY Ende
Slide 6: Consolidated operating income fluctuation
Real profit increase by absorbing active marketing investment in Asia through real revenue increase effect, fall in prices of materials, and improvement of productivity. (Approx. 3% in profit increase excluding exchange effect) Consolidated operating income fluctuation (100 millions of yen) Sellin
Slide 7: Rate changes by currency
Effects of exchange fluctuations: Net sales -58.2 billion JPY, operating income -4.8 billion (Breakdown of operating income : Conversion -3.9 billion JPY, rise in purchase price -0.9 billion JPY) Rate changes by currency Currency Exchange rate for 2016 Exchange rate for 2015 Change in rate Taiwan
Slide 8: 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) FY Ended FY Ended Net sales Operating income Dec. 31, 2016 Dec. 31, 2015 Operating income Operating income Difference Differ
Slide 9: Summary of Business Plan: Fiscal Year Ending December 31, 2017
Summary of Business Plan: Fiscal Year Ending December 31, 2017
Slide 10: Fiscal Year Ending December 31, 2017 Plan Summary
Fiscal Year Ending December 31, 2017 Plan Summary Key Points for Sales/Operating Income Japan（1 to 5 % increase in revenue, earnings deteriorated) Maintaining stable growth by continuously proposing new values focusing on HC business Inbound demand (reseller) will continue but expected to leve
Slide 11: Adoption of IFRS from Fiscal Year 2017
Adoption of IFRS from Fiscal Year 2017 Plan to increase income/profit through recovery in Asia Consolidated earnings forecast (Millions of yen) IFRS JGAAP FY Ending FY Ended FY Ended FY Ended Dec. 31, 2017 Difference Dec. 31, 2016 (%) Dec. 31, 2016 Dec. 31, 2015 Performance forecast * Net sales 63
Slide 12: Effects of exchange fluctuations on FY2017 plan
Effects of exchange fluctuations: Net sales approx. +1.1 billion JPY, operating income +0.6 billion JPY Rate fluctuations by currency Assumed rate for FY Currency ending Dec 31, 2017 Exchange rate for 2016 Change in rate Taiwan (TWD) 3.53 3.38 +4.4% Thailand (THB) 3.17 3.09 +2.6% South Korea (KRW)
Slide 13: Consolidated cash flow plan
Plan for shareholder return from free cash flow while making growth investment for the sustainable improvement of corporate value Consolidated cash flow plan Dec. ’17 Fiscal Period Operating income after Profitability taxes 62.5 bn. yen Depreciation expenses 30 bn. yen Working capital increase 11
Slide 14: Shareholder Return Policy
Continued dividend increase in FY 2017 and total return ratio of 50% scheduled through the purchase of own shares and dividends linked to business performance Shareholder Return Policy (Millions of yen) Dividends Purchase of own shares Total return ratio 30,000 55.6% 60.0% 53.9% 53.2% 49.5% 51.4%
Slide 15: Swiftly acquire stocks through buy-back based on cash conditions
Swiftly acquire stocks through buy-back based on cash conditions Stock buy-back acquisition graph (100 millions of yen) 160 140 140 140 130 120 120 110 100 90 76 80 80 60 65 60 50 50 50 40 20 0 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 *'14/12 '15/12 '16/12'17/12E * Irregular results d
Slide 16: Steady and continual dividend payments
Steady and continual dividend payments On track for 16 consecutive periods of increased dividends Dividends per share (JPY) 20.0 18.0 18.0 16.0 16.0 On track for 16 consecutive periods of 14.8 increased dividends in fiscal 2017 14.0 12.7 12.73 12.0 10.7 11.3 10.0 9.3 7.7 8.0 6.0 6.0 4.9 5.1 3.7 4.
Slide 17: Mid Term Management Plan
Mid Term Management Plan © unicharm
Slide 18: Fiscal year 2020 targets: 800 billion yen sales, 15% margin and ROE
Fiscal year 2020 Aim for 800 billion Yen in sales, operating income margin 15%, and ROE 15% 10th Midterm Management Plan（Based on IFRS） Net sales Financial target for 10th Midterm ¥800 billion Management plan To grow at twice the market growth rate Operating income margin 15% Net sales ROE 1
Slide 19: Reference materials: Financial Data
Reference materials： Financial Data
Slide 20: The effects of adoption of IFRS in fiscal 2016
[Ref.] The effects of adoption of IFRS in fiscal 2016 IFRS (100 millions of yen) % JGAAP (100 millions of yen) % Sales (Gross) Net Sales 7,110 100.0 売上控除 Items Deducted from Sales Net Sales 6,047 100.0 Cost of Sales 3,768 Cost of Sales 3,765 Gross Profit 2,278 37.7 Gross Profit 3,345 47.0 Selling, g
Slide 21: Business Segment Information
[Ref.] Profits have improved for pet care via improvement of product mix in North America, and brand enhancement and optimization of costs in Japan Business Segment Information (Millions of yen) FY Ended FY Ended Net sales Operating income Dec31, 2016 Dec31, 2015 Operating income Operating income
Slide 22: Overseas sales composition ratio 57.7%
[Ref.] Overseas sales composition ratio 57.7% （60.9％ excluding exchange effects） Japan / overseas sales (Billions of yen) 1200 64.4% 70% 61.4% 1000 57.7% 57.7% 60% 52.6% 49.3% 800 46.9% 48.0% 42.9% 50% 42.4% 42.8% 38.5% 38.2% 33.9% 40% 600 26.9% 31.4% 30% 400 20% 200 10% 0 0% '10/3 '11/3 '12/3 '13
Slide 23: Operating profit ratio by location
[Ref.] In Japan, improvement of product mix with high value-added products In Asia, active marketing investment ahead of the market Operating profit ratio by location 20.0% *1 日本 Japan アジア Asia その他 Other 連結 Consolidated 18.4% 16.7% 15.5% 15.1% 15.5% 15.0% 14.0% 13.6% 13.8% 13.7% 13.3% 12.4% 13.3%
Slide 24: Foreign exchange rate sensitivity to 1% depreciation of the yen
[Ref.] Foreign exchange rate sensitivity to 1% depreciation of the yen vis-à-vis local currencies increases net sales and operating income approx. 3.8 billion JPY and 0.4 billion JPY, respectively Impact of a 1% change (depreciation of yen) Assumed rate for FY Currency (million yen) ending Dec 31, 2
Slide 25: Management index
[Ref.] Improve profitability focused on sales growth to achieve sustainable growth and aim for the improvement of corporate value by improving efficiency Management index FY 2020 FY 2017 FY 2016 Indicator Fiscal Period Plan Actual Growing at twice the -3.8% Sales growth rate market growth Growth 4
Slide 26: Reference materials: Increasing Corporate Value
Reference materials：Increasing Corporate Value
Slide 27: Recycle technology for used disposable diapers
Environment World first! (E) “Recycle technology for used disposable diapers” Start verification test with Shibushi City, Kagoshima Prefecture Content of implementation Unicharm developed recycle technology Segregation and collection of used paper diapers Verification test for recycling Full s
Slide 28: Support activities unique to unicharm
Society (S) Support activities unique to unicharm First-wave education in Myanmar Furthering support for dementia Similar to India and Indonesia, we have coproduced a Together with supporting worry-free outings by government-approved first-wave education program in providing urinary products, we
Slide 29: A company where each employee can work healthily and with purpose
Society (S) We aim for a company where each employee can work healthily and with purpose Newly established “work-style reform development office” Implementation of a “Interval Work System” Promoting work-style reforms themed Working past 22:00 has been prohibited, with a around improving product
Slide 30: Corporate governance organizational chart
Governance Continuous strengthening of operations while increasing transparency (G) in decision-making standards for Board of Director meetings, Corporate Auditor Committee, Nominating Committee, and Compensation Committee Corporate governance organizational chart General Meeting of Shareholders M
Slide 31: Board of Auditors
Governance (G) Board of Auditors Audit and Supervisory Committee Member Candidates (Appointed during March 30th General Shareholder Meetings) Position Name 【Current appointee】 Corporate Audit Committee Member (Outside) Kimisuke Fujimoto Mr. Fujimoto has a diverse background and advanced knowledge
Slide 32: 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. 32