Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/11 Earnings Presentation
26 slides from Toyobo's earnings presentation, Nov 4, 2010
Slide 1: Presentation to Investors
Presentation to Investors Ryuzo Sakamoto President TOYOBO Co., Ltd. November 4, 2010 (Analysts’ Meeting)
Slide 2: Highlights
Highlights H1 FY 3/11 Results Significant recovery in operating income, exceeding the previous forecast -Rise in shipments for flat panel displays, electronics, and automotive fields -Launch of new products improves product portfolio -Constraints on fixed cost through cost reduction measures (CR100)
Slide 3: Contents
Contents I Results for the 1st Half of FY 3/11 II Forecasts for FY 3/11 III Progress of Medium-Term Plan (FY 3/11-FY 3/14) Appendix
Slide 4: I. Results for the 1st Half of FY 3/11
I. Results for the 1st Half of FY 3/11
Slide 5: (1) Results for the 1st Half of FY 3/11
(1) Results for the 1st Half of FY 3/11 \ bn. H1 H1 H2 H1 Previous FY 3/09 FY 3/10 FY 3/10 FY 3/11 forecasts Q1 Q2 (Aug. 2010) Net sales 202.5 154.9 163.9 82.2 87.6 169.7 173.0 Operating income 9.7 3.0 8.5 4.5 6.5 10.9 10.0 Ratio to sales 4.8% 1.9% 5.2% 5.4% 7.4% 6.5% Net income -5.6 -0.6 2.6 -2.5 0
Slide 6: (2) Financial Position
(2) Financial Position \ bn. Mar. 31, Mar. 31, Sep. 30, 2009 2010 2010 Total assets 443.8 438.4 421.7 Inventories 75.8 62.5 62.4 Net assets 134.0 131.1 127.0 Shareholders' equity 98.3 107.1 103.0 (Equity ratio) 22.1% 24.4% 24.4% Minority interests 35.7 24.0 24.0 Interest-bearing debt 178.9 171.0 161
Slide 7: (3) Results by Segment
(3) Results by Segment \ bn. Net Sales Operating Income H1 H1 H2 H1 H1 H1 H2 H1 FY 3/09 FY 3/10 FY 3/10 FY 3/11 FY 3/09 FY 3/10 FY 3/10 FY 3/11 Films & Functional Polymers 69.7 55.3 59.7 64.0 4.8 1.2 4.9 6.9 Industrial Materials 41.6 28.7 34.4 34.5 2.9 0.7 1.6 2.4 Life Science 17.0 15.7 16.7 14.9 1.
Slide 8: (4) Analysis of Changes in Operating Income
(4) Analysis of Changes in Operating Income Appreciation [H1 FY 3/10 H1 FY 3/11] Product of the yen mix (sales price) Rise +2.1 -0.8 in prices Others Volume +1.5 +0.6 increase +6.5 -2.0 Raw material and fuel costs increase 10.9 3.0 H1 FY 3/10 H1 H1 H1 FY 3/11 (¥ bn.) FY 3/10 FY 3/11 Naphtha price
Slide 9: 1) Films & Functional Polymers
1) Films & Functional Polymers Brisk shipments of films for flat panel displays Steady demand for packaging films Increase in sales of functional polymers such as industrial adhesives Net sales (¥bn.) Operating income (¥bn.) 64.0 59.7 55.3 6.9 (10.8%) 31.2 4.9 28.2 (8.2%) 3.2 32.8 1.2 (2.2%) 3.8 27.
Slide 10: 2) Industrial Materials
2) Industrial Materials Steady growth for functional filters Recovery of shipments for automotive products such as airbag fabrics Expansion of production capacity of high performance fiber “Dyneema” Net sales (¥bn.) Operating income (¥bn.) sales 】34.5 【 Net 34.4 28.7 2.4 18.2 (6.9%) 1.6 16.0 (4.8%)
Slide 11: 3) Life Science
3) Life Science Increase in sales of bioproducts such as diagnostic enzymes Medical membranes affected by government price revisions Toyobo RO membranes adopted for use in one of the largest seawater desalination plants in the Middle East Net sales (¥bn.) Operating income (¥bn.) 16.7 15.7 14.9 2.3 (
Slide 12: 4) Textiles
4) Textiles Focus on functional textiles businesses for sportswear and underwear fields Exports of acrylic fibers and fabrics for thoub (traditional Arab clothing) were affected by the appreciation of the yen Net sales (¥bn.) Operating income (¥bn.) 45.9 44.3 42.5 24.2 23.6 0.2 0.3 0.2 (0.6%) (0.4%)
Slide 13: II. Forecasts for FY 3/11
II. Forecasts for FY 3/11
Slide 14: (1) Forecasts for FY 3/11
(1) Forecasts for FY 3/11 \ bn. Previous FY 3/10 FY 3/11 (Forecasts) forecasts H1 H2 H1 H2 (Aug. 2010) Net sales 154.9 163.9 318.8 169.7 170.3 340.0 350.0 Operating income 3.0 8.5 11.5 10.9 11.1 22.0 22.0 Ratio to sales 1.9% 5.2% 3.6% 6.5% 6.5% 6.5% Net income -0.6 2.6 2.1 -1.9 6.9 5.0 5.0 Depreciat
Slide 15: (2) Forecasts by Segment
(2) Forecasts by Segment \ bn. Net Sales Operating Income FY 3/10 FY 3/11 (Forecasts) FY 3/10 FY 3/11 (Forecasts) H1 H2 H1 H2 Films & Functional Polymers 114.9 64.0 63.0 127.0 6.1 6.9 6.1 13.0 Industrial Materials 63.2 34.5 37.5 72.0 2.3 2.4 2.6 5.0 Life Science 32.4 14.9 16.0 31.0 4.0 1.7 2.3 4.0 S
Slide 16: (3) Analysis of Changes in Operating Income
(3) Analysis of Changes in Operating Income [Forecasts : FY 3/10 → FY 3/11] Appreciation Product of the yen mix (sales price) Rise +4.2 -2.1 Others Increase in prices +1.5 In volume +1.5 +7.7 -2.3 Raw material and fuel costs increase 22.0 11.5 FY 3/10 FY 3/11 (¥ bn.) FY 3/10 FY 3/11 Naphtha price in
Slide 17: III. Progress of Medium-Term Plan
III. Progress of Medium-Term Plan
Slide 18: (1) Medium-Term Plan
(1) Medium-Term Plan “The category leader for providing new value in the environment, life science, and high-function products fields” ¥ bn. 4,500 450 426.7 431.4 450 45 401.9 400.0 4,000 400 367.3 400 40 340.0 35 3,500 350 318.8 Medium-Term 350 29.9 30.4 30.0 3,000 300 27.1 Plan 30 300 2,500 250 22
Slide 19: (2) Strategies and Action Plan
(2) Strategies and Action Plan Strategies Continual reform of the business portfolio Aggressive expansion of specialty businesses Action Plan 1) Capital investment 2) Overseas business development 3) Improvement of the product portfolio 4) Improved asset efficiency 19
Slide 20: (3) Targets for FY 3/14
(3) Targets for FY 3/14 \ bn. FY 3/11 FY 3/14 forecasts targets Net sales 340.0 400.0 Specialty businesses 230.0 300.0 Com position ratio 68% 75% Operating income 22.0 30.0 •CAPEX ¥65 billion (Over the next four years) •R&D expenses ¥40 billion (Over the next four years) Direction Growth of special
Slide 21: (4) Action Plan and Progress
(4) Action Plan and Progress Action Plan Progress 1) Capital investment • PET films for industrial use • Modified polyolefin adhesives 2) Overseas business • Percentage of overseas sales: 19％(H1 FY 3/10) 23％ (H1 FY 3/11) development • Airbags fabrics in China • Joint venture for desalination me
Slide 22: Appendix
Appendix
Slide 23: Appendix 1) Status of Litigation related to Body Armor using ZYLON Fiber
Appendix 1)Status of Litigation related to Body Armor using ZYLON Fiber Summary 1. In June 2003, an accident involving 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 s
Slide 24: Appendix 2) Forecasts of Sales by Segment
Appendix 2) Forecasts of Sales by Segment \ bn. FY 3/11 FY 3/14 Change Forecasts Plan Films & 127.0 160.0 +33.0 Functional Polymers Industrial Materials 72.0 85.0 +13.0 Life Science 31.0 55.0 +24.0 Specialty Businesses 230.0 300.0 +70.0 Textiles 85.0 82.0 - 3.0 Real Estate and Others 25.0 18.0 - 7.0
Slide 25: Appendix 3) Business Fields
Appendix 3) 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 polyami
Slide 26: 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