Unicharm Corporation · TSE:8113

Unicharm — Q1 FY2014 Earnings Presentation

24 slides from Unicharm's earnings presentation, Jul 31, 2013

  1. Slide 1: Unicharm Presentation Materials for Investor's Meeting

    Unicharm Presentation Materials for Investor’s Meeting July 31, 2013 Takahisa Takahara President and CEO Unicharm Corporation Projections stated herein include those based on the Company’s assumptions, forecasts and plans as of July 31, 2013. Therefore, actual results may differ significantly from p

  2. Slide 2: Table of Contents

    Table of Contents 1. Overall Financial Performance Review: Three Months Ended June 2013 P3 2. Financial Performance Summary: P5 Three Months Ended June 2013 3. Operating Environment Review: Three Months Ended June 2013 P12 4. Financial Results Forecasts for FY2014 P17 5. Shareholder Return Policy P2

  3. Slide 3: 1. Overall Financial Performance Review: Three Months Ended June 2013

    1. Overall Financial Performance Review: Three Months Ended June 2013 Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

  4. Slide 4: Overall Financial Performance Review

    Overall Financial Performance Review  Net sales and operating income reached the record highs for 10th and 5th consecutive periods, respectively.  Net sales ¥143.7 billion (UP 19.7%↑)  Operating income ¥17.6 billion (UP 14.6%↑)  Sales from overseas business again reached a record high. Sales in

  5. Slide 5: 2. Financial Performance Summary: Three Months Ended June 2013

    2. Financial Performance Summary: Three Months Ended June 2013 Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

  6. Slide 6: Year-on-Year Comparison

    Net sales and operating income has continued to establish all-time highs with year-on-year growth of 19.7% and 14.6%, respectively  Year-on-Year Comparison (Millions of yen） 3 Months Ended 3 Months Ended Difference June 30, 2013 June 30, 2012 Difference Note (%) Asia Net sales 143,761 120,112 23,64

  7. Slide 7: Changes in Operating Income

    Operating income increased approximately ¥2.2 billion, with higher gross profit due to the increased sales absorbing the cost of marketing costs, etc.  Changes in Operating Income Increase in 17.6 gross profit due to sales increase of 15.4 billion yen ¥23.6 billion +10.7 billion yen Impact of produ

  8. Slide 8: Geographical Segment Information

    Both sales and profits significantly increased in Asia and the Middle East  Geographical Segment Information (Millions of yen） Elimination/ Japan Asia Other Total Companywide Consolidated 3 Months Ended June 2012 Net sales 55,871 47,310 16,930 120,112 ‐ 120,112 Operating income 6,500 7,861 1,057 15

  9. Slide 9: Operating Income Margin by Geographical Segment

    Operating income margin turned to upward trend because marketing cost for distribution area expansion in Asia was absorbed  Operating Income Margin by Geographical Segment 20.0% 18.7% 16.7% 17.0% 16.6% 14.7% 15.0% 13.6% 13.2% 12.5% 12.8% 12.3% 11.8% 13.5% 9.0% 9.1% 9.0% 12.5% 10.0% 11.7% 11.6% 8.6%

  10. Slide 10: Business Segment Information

    Sales and profits expanded mainly in Asian personal care  Business Segment Information (Million yen) Personal Elimination/ Pet Care Others Total Companywide Consolidated Care 3 Months Ended June 2012 Net sales 100,509 18,106 1,496 120,112 － 120,112 Operating income 14,029 1,274 89 15,393 5 15,399 3

  11. Slide 11: Changes in Domestic and Overseas Net Sales

    Sales from overseas business reached an all-time high of 60.2% driven by the steady sales growth in Asia  Changes in Domestic and Overseas Net Sales (Billion yen) 150 70% 140 60.2% 130 53.9% 60% 120 110 43.4% 44.6% 44.6% 50% 100 39.6% 39.6% 39.4% 90 34.4% 40% 80 31.8% 26.8% 70 23.3% 30% 60 50 20% 4

  12. Slide 12: 3. Operating Environment Review: Three Months Ended June 2013

    3. Operating Environment Review: Three Months Ended June, 2013 Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

  13. Slide 13: Impact of exchange rate fluctuations

    Impact of exchange rate fluctuations (year-on-year comparison) Net sales increased approx. ¥14.2 billion year on year, while operating income increased approx. ¥2.1 billion Previous year Current year Currency Change in rate exchange rate exchange rate Taiwan (TWD) 2.70 3.31 22.6% Thailand (THB) 2.57

  14. Slide 14: Foreign exchange rate sensitivity to a 1% depreciation of the yen

    Foreign exchange rate sensitivity to a 1% depreciation of the yen vis-à-vis local currencies increases net sales and operating income approx. ¥3,400 million and ¥300 million, respectively Impact of a 1% change (depreciation of yen) Assumed rate for (Millions of yen) Currency FY2014 Net sales Operati

  15. Slide 15: Retail prices of disposable diapers in Asia remained stable

    Retail prices of disposable diapers in Asia remained stable  Disposable Diapers: Changes in Retail Price per Piece (Average of All Manufacturers) China Thailand 1.5 （RMB） 12.00 （Baht） 1.4 11.00 1.3 10.00 1.2 9.00 1.1 8.00 1 0.9 7.00 0.8 6.00 Indonesia Japan 2,000 （Rupiah） 23 （Yen） 1,900 22.5 22 1,8

  16. Slide 16: Retail prices of feminine sanitary products continued to increase

    The retail prices of feminine sanitary products continued to post an increase through the introduction of high-value-added products  Sanitary Products: Changes in Retail Price per Piece (Average of All Manufacturers) China Thailand 0.60 （RMB） 3.20 （Baht） 0.55 3.00 2.80 0.50 2.60 0.45 2.40 0.40 2.20

  17. Slide 17: 4. Financial Results Forecasts & Progress for FY2014

    4. Financial Results Forecasts & Progress for FY2014 Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

  18. Slide 18: Financial Results Forecasts for FY2014

    Compared to the forecast for 6 months ending in 2013, net sales and operating income is progressing smoothly  Financial Results Forecasts for 2Q of FY2014 Cumulative (Millions of yen) 6 Months Ending 3 Months Ended Achievement Rate (%) Sep 2013 June 2013 Net sales 271,000 143,761 53.0% Operating in

  19. Slide 19: Changes in Cash Flow

    Continuing aggressive investments while generating free cash flow  Changes in Cash Flow (Billions of yen) 62.6 60 53.7 41.6 43.0 45.4 40 34.1 36.7 23.3 20 15.2 17.3 10.5 11.1 6.2 0 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3E Cash Flow Free Cash Flow Consolidated cash flow 08/3 '09/3 '10/3 '11/3 '12/

  20. Slide 20: 5. Shareholder Return Policy

    5. Shareholder Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

  21. Slide 21: Change in dividends

    The planned dividend for FY2014 is ¥36, a ¥2 increase year on year. The dividend is paid out stably and continuously. A dividend increase is planned for 12 consecutive periods  Change in dividends (yen) 40 36 34 35 32 30 28 25 23 20 18 15 14 15 10 11 10 8 8 9 7 5 0 2001/3 2002/3 2003/3 2004/3 2005/

  22. Slide 22: Targeting dividend payout ratio, ROE and DOE

    For profit returns, targeting a dividend payout ratio of no less than 20%, ROE of no less than 15%, and DOE of no less than 3% (%) (%) Dividend on Equity Ratio Dividend (DOE) (Right axis) payout ratio Copyright Copyright (c) Copyright (c) Unicharm (c) Unicharm Corporation. 2012 Unicharm All rights C

  23. Slide 23: Unicharm Ideals

    Unicharm Ideals We contribute to creating a better quality of life for everyone by offering only the finest products and services to the market and customers, both at home and abroad. We strive to pursue proper corporate management principles which combine corporate growth, associate well-being, and

  24. Slide 24: Copyright (c) (c) Unicharm 2012 Unicharm

    Copyright (c) Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved. 24

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