Unicharm Corporation · TSE:8113
Unicharm — Q1 2019 Earnings Presentation
30 slides from Unicharm's earnings presentation, May 13, 2019
Slide 1: First Quarter FY2019 Presentation Materials for Investor Meeting
First Quarter of the Fiscal Year Ending December 31, 2019 Unicharm Presentation Materials for Investor Meeting May 13, 2019 Takahisa Takahara President and CEO Unicharm Corporation Projections stated in these materials include those based on the Company’s currently obtained assumptions, forecasts an
Slide 2: Financial Performance Summary: First Quarter of FY Ending December 2019
Financial Performance Summary: First Quarter of the Fiscal Year Ending December 31, 2019 ◆ Document notations BC： Baby Care Business FC： Feminine Care Business HC： Health Care Business C&F：Clean & Fresh Business PC： Pet Care Business Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All
Slide 3: Financial Performance Summary
Fiscal Period Year Ending Dec. 31, 2019: First Quarter Financial Performance Summary Consolidated results Sales of 168.6 billion JPY (4.8% increase), core operating income 20.1 billion JPY (18.7% decrease), COPM 15.4%⇒11.9% Achievement of consolidated performance forecast is as planned. (Sal
Slide 4: Consolidated account highlights
4.8% sales increase, 18.7% core operating profit decrease Sales and profit are on plan for consolidated performance forecast Consolidated account highlights （Millions of yen) (forecast) 1Q of 1Q of Difference FY Ending Achievement FY Ended Dec. FY Ending Dec. Difference (%) Dec. 31. Rate 31. 2018
Slide 5: Core operating income fluctuation
Effected increasing sales by aggressive marketing investment, however, due to the impact of inventories’ adjustment in cross border EC market and rising materials price, decreased profit 4.6 billion JPY Core operating income fluctuation （100 millions of yen） Selling and administrative Gross profit
Slide 6: Geographical segment information
In Asia, China drove increasing sales and profit. India had high growth and profits became steady In Japan, HC and PC were favorable, however, BC cross-border slowed down due to inventory adjustment against last year high growth. For others, Brazil and US favorably progressed. Geographical segment
Slide 7: Operating profit ratio by location
Rising material price impacted all region. In Japan, aggressive marketing cost, investments, decline for cross-border EC and start of operation for Kyushu factory effected operating profit ratio. For others, profitiability is improving in US Operating profit ratio by location *1 25.0% Japan Asia O
Slide 8: Business Segment Information
Personal Care has progressed favorable overseas, however, due to rising material price and dull cross-border EC, sales increased but profit decreased. Pet Care expanded steadily. In US, improved profitability. Business Segment Information （ Millions of yen） 1Q of 1Q of Difference FY Ended FY Endin
Slide 9: Overseas sales composition ratio
Overseas sales composition ratio 67.0% （67.6％ excluding exchange effects） Domestic / overseas sales trend (Billions of yen) 300 *2 80% 70.1% 67.6％ 250 64.1% 64.9％ 60.2% 60.5% 60.9% 54.2% 67.0% 60% 61.3% 50.0% 200 48.8% 44.6% 45.1% 44.0% 45.6% 150 40% 100 20% 50 0 0% '13/1Q '14 /1Q '15 /1Q '16 /1Q
Slide 10: Trend; rate fluctuations by currency
Impact of exchange fluctuations Approx. 3 billion yen decrease in sales Approx. 0.2 billion yen decrease in core operating income Trend; rate fluctuations by currency Currency Exchange rate for 1Q 2018 Exchange rate for 1Q 2019 Rate change China (CNY) 17.05 16.33 -4.2% Indonesia (IDR) 0.0080 0.007
Slide 11: Shareholder Return Policy
Shareholder Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 12: Shareholder return policy
Through dividend and acquisition of own shares linked to business performance, aiming for total return ratio of 50% in 2019. Shareholder return policy (Millions of yen) 60% 40,000 Dividends Purchase of own shares Total return ratio 50% 35,000 50% 30,000 40% 25,000 20,000 30% 15,000 20% 10,000 10%
Slide 13: Dividends per share
Implemented steady and continuous increased dividends. And plan for 18 consecutive periods of increased dividends Raised dividend payout ratio. Dividends per share (JPY) 40 Annual dividend (JPY) Consolidated divident payout ratio 35% 30% Approx. 30 26% 25% 20% 20 15% 28 24 10% 10 20 15 16 11 11 13
Slide 14: Stock buy-back acquisition graph
Swiftly acquire stocks through buy-back based on cash conditions As of April FY19, acquired approximately 11.7 billion JPY Stock buy-back acquisition graph (100 millions of yen) Stock buy-back acquisition 150 155 150 140 140 130 120 100 110 90 76 80 117 50 0 '11/3 '12/3 '13/3 '14/3 '14/12 *1 '15/1
Slide 15: Improvement of Corporate Value
Improvement of Corporate Value Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 16: Corporate culture
Corporate culture The company can be No.1 only if it remains dedicated to providing outstanding customer satisfaction at all times. Maintaining our No.1 position through continued and dedicated service Changing values Find reason within ourselves AII reasons and responsibilities are yours. You shoul
Slide 17: Long-term revenue model through maximizing life time value
Long-term revenue model through maximizing life time value ◆Business model target to a wide range of customers Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 17
Slide 18: Competitive to support sustainable growth
Competitive to support sustainable growth ◆Evolution of our "winning patterns" ◆Expand market by strategy according to the each stage of each country and business Value appeal in high value-added products according to various needs and services Deploy at a price range that makes it Maturing stage ea
Slide 19: Structure of support to sustainable growth
Structure of support to sustainable growth ◆SAPS method ◆OODA-Loop method 【An environment where change has become normal 【An environment where change is small (new normal)】 Control organization based on plans. It is effective under stable environment. However, for unexpected Observation： Observe the
Slide 20: Approach to realize a “Cohesive Society”
Approach to realize a “Cohesive Society” Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 21: Initiatives toward a Cohesive Society and key challenges
Through our initiatives to achieve Unicharm’s envisioned “Cohesive Society”, resolve important issues and achieve sustainable growth 【Unicharm’s Key Challenges】 1. Lengthening Healthy Life 4. Contributing to Expectancy the Community・ Human respect 2. Supporting Women's Independence and Improving Hyg
Slide 22: Lengthening Healthy Life Expectancy
Lengthening Healthy Life Expectancy ◆Supporting healthy life expectancy with “Lifree” ◆Activities for the realization of a Cohesive Society with pets Contributing to lengthening healthy life expectancy with Pursuing “pleasure” by “animal therapy” to make smile Lifree “Social Walking”* and motiva
Slide 23: Supporting Women's Independence and Improving Hygiene
Supporting Women's Independence and Improving Hygiene ◆Effort to eliminate ◆Support for low-birth-weight baby “I can't go to school because I am menstruating” Expansion of first menstruation educational programs Support to baby, family and medical organization for in India, Indonesia, and Myanma
Slide 24: Contribution to Global Environment
Contribution to Global Environment ◆ Unicharm’s aimed diaper recycling model Realization of a system to recycle pulp to the same level as unused materials while keeping processing costs at the same level as incineration by improving processing efficiency. Recycled to the same level of sanitation
Slide 25: Contributing to the Community
Contributing to the Community ◆Activities for “Support of Disaster-Affected Areas” Continuing the Matching Fund* which combines Disaster-Affected Area Support and energy-saving initiatives Sales of “Super Coolbiz 2018” was 4,014 thousand JPY. Utilize donations to the "Michinoku Mirai Fund" that
Slide 26: Strengthen the company's organization and ensure fair business practices
Strengthen the company’s organization and ensure fair business practices ◆ Maintain governance and enhancement: Transparency ・ Objectivity ・ Fairness Established “Work-style reform development office” in 2016. Promoting productivity and women’s activity. Chairman (Nomination Committee ・ Compensa
Slide 27: Activities of digital transformation (DX)
Activities of digital transformation (DX); corporate vision “Nola&Dola (dreams come true for consumers” ◆Pick up the seeds of consumers’ worries, provide ◆Establishment “Kyo-sei” Social Lab resolvable information Discovery real value to obtain bio‐information Child-rearing Video Media “Babily” i
Slide 28: DOLA
To identify consumers’ unawareness of value, promoting digital DB and organizational change ◆To provide products and services for dreams coming true to consumers. To grasp consumers’ changing value and purchasing behavior, promote establishment of digital innovation center in China. Digital innova
Slide 29: Evaluation and cooperation with external agencies
Evaluation and cooperation with external agencies Initiatives for the Global Environment Science Base Targets JCI FSC RSPO (Japan Climate Initiative) (Forest stewardship council) Initiatives to require companies to set Participated by 105 companies and System to certify appropriate for
Slide 30: Copyright Corporation. All rights
Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 30