Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/21 Earnings Presentation
28 slides from Toyobo's earnings presentation, Nov 9, 2020
Slide 1: Presentation to Investors
November 9, 2020 Presentation to Investors TOYOBO CO., LTD.
Slide 2: Our apologies
Our apologies We pray that the souls of our two employees who lost their lives due to the fire accident that occurred at the Company’s Inuyama Plant on September 27, 2020 rest in peace, and extend our deepest sympathies to their families. Moreover, we sincerely apologize to concerned parties for the
Slide 3: Overview of the fire accident
Overview of the fire accident 1. Date and time of occurrence Sept. 27, around 9 p.m. (Suppressed at Sept. 28, 1 a.m.) 2. Place of occurrence Inuyama Plant (Aichi prefecture) 3. Damage situation 2 fatalities (employees), 1 injury (employee) returned to work. 4. Overview Buildings for the production o
Slide 4: 1. Results for H1 of FY 3/21
1. Results for H1 of FY 3/21
Slide 5: Highlights
1. Results for H1 of FY 3/21 Highlights H1 FY 3/21 - Despite both sales and profit decreasing as the impact of the spread of COVID-19 was significant, a decrease in profit was modest due to solid performance of the films business. - Sales of ¥157.5 bn. (down 4.5%), operating profit of ¥10.4 bn. (dow
Slide 6: Summary of Results: PL
1. Results for H1 of FY 3/21 Summary of Results: PL (¥ bn.) FY 3/20 FY 3/21 YOY H1 H2 H1 Amount % Net sales 164.9 174.7 157.5 - 7.4 - 4.5% Operating profit 11.1 11.7 10.4 - 0.7 - 6.2% (Ratio to sales) 6.7% 6.7% 6.6% - - Ordinary profit 9.0 9.1 5.9 - 3.1 - 34.6% Extraordinary income and losses - 4.8
Slide 7: Analysis in Changes in Operating Profit
1. Results for H1 of FY 3/21 Analysis in Changes in Operating Profit Raw materials and fuel costs Prices 16.0 +3.4 -1.5 Volume -1.0 Others 14.0 H1 H1 -1.6 FY 3/20 FY 3/21 12.0 -0.7 10.0 (¥ bn.) Automobile-related products 8.0 Textiles Depreciation 6.0 11.1 Cost to launch new unit of films 10.4 4.0 2
Slide 8: Summary of Results: BS
1. Results for H1 of FY 3/21 Summary of Results: BS (B) (A) (¥ bn.) Mar. 31, 2019 Mar. 31, 2020 Sept. 30, 2020 (A)-(B) Total assets 461.0 488.9 487.0 - 1.9 Cash and deposits 22.3 25.2 30.0 + 4.8 Inventories 76.8 80.6 80.5 - 0.1 Non current assets 267.9 282.5 287.6 + 5.2 Net assets 181.2 182.6 183.5
Slide 9: Films and Functional Materials
1. Results for H1 of FY 3/21 Films and Functional Materials (¥ bn.) FY 3/20 FY 3/21 H1 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 29.5 30.4 59.9 36.3 37.5 73.8 +13.9 +23.1% Operating profit 3.3 4.0 7.3 3.9 4.8 8.7 +1.4 +19.5% (OPM) 11.3% 13.0% 12.2% 10.8% 12.8% 11.8% ‐ ‐ Packaging film - Special deman
Slide 10: Films and Functional Materials
1. Results for H1 of FY 3/21 Films and Functional Materials Industrial film “COSMOSHINE SRF” - In H1, sales increased by approx. 30%. Started mass production of new unit from July 2020. - Expecting approx. 1.5-fold increase in production capacity. - Expansion of share due to superior water resistanc
Slide 11: Mobility
1. Results for H1 of FY 3/21 Mobility (¥ bn.) FY 3/20 FY 3/21 H1 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 1 1.7 1 0.5 2 2.2 6.8 8.2 1 5.0 - 7.2 - 32.3% Operating profit 0.3 - 0.7 - 0.4 - 0.7 - 0.6 - 1.3 - 0.9 ‐ (OPM) 2.7% - - - - - ‐ ‐ Airbag fabrics - Sales declined by 30% primarily in Thailand and
Slide 12: Lifestyle and Environmental
1. Results for H1 of FY 3/21 Lifestyle and Environmental (¥ bn.) FY 3/20 FY 3/21 H1 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 30.7 33.1 63.8 22.9 27.3 50.2 - 13.6 - 21.4% Operating profit 0.9 1.5 2.4 0.3 1.4 1.8 - 0.6 - 26.8% (OPM) 2.9% 4.6% 3.8% 1.5% 5.2% 3.5% ‐ ‐ Environmental solutions - Sales of
Slide 13: Life Science
1. Results for H1 of FY 3/21 Life Science (¥ bn.) FY 3/20 FY 3/21 H1 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 6.0 6.5 12.5 6.3 6.0 12.4 - 0.1 - 1.1% Operating profit 0.9 1.1 2.0 1.0 0.6 1.6 - 0.4 - 20.4% (OPM) 14.6% 17.4% 16.1% 15.7% 10.0% 12.9% ‐ ‐ Biotechnology - Demand for raw materials for diagn
Slide 14: Measures against COVID-19
1. Results for H1 of FY 3/21 Measures against COVID-19 TOYOBO Group’s top priority has been the safety and wellbeing of our employees and their families, with the primary goal of protecting both society and the Company. We are also making a positive contribution through our products and services. Em
Slide 15: 2. Forecasts for FY 3/21
2. Forecasts for FY 3/21
Slide 16: Forecasts for FY 3/21
2. Forecasts for FY 3/21 Forecasts for FY 3/21 Despite only a slight decrease in profit in H1, the full-year forecast of operating profit remains unchanged as uncertainty remains strong. (¥ bn.) FY 3/20 FY 3/21 YOY result H1 H2 forecasts Amount % Net sales 339.6 157.5 172.5 330.0 - 9.6 - 2.8% Operat
Slide 17: Analysis in Changes in Operating Profit
2. Forecasts for FY 3/21 Analysis in Changes in Operating Profit Raw materials and fuel costs Prices 30.0 +5.4 -2.6 Volume -2.2 Others 25.0 FY 3/20 -3.4 FY 3/21 20.0 -2.8 Automobile-related products (¥ bn.) Textiles 15.0 22.8 20.0 10.0 Depreciation Fire accident Cost to launch new unit of films 5.0
Slide 18: Forecasts by Segment
2. Forecasts for FY 3/21 Forecasts by Segment (¥ bn.) Net sales Operating profit FY 3/20 FY 3/21 FY 3/20 FY 3/21 YOY result forecasts result forecasts Films and Functional 127.1 148.0 14.6 15.8 + 1.2 Materials Mobility 43.9 35.0 - 0.7 - 1.9 - 1.2 Lifestyle and 128.4 109.0 5.9 4.0 - 1.9 Environmental
Slide 19: Commitment to prioritizing safety
Commitment to prioritizing safety The Company moved forward with disaster prevention measures with the diagnosis and guidance from outside experts, determined to ensure that a fire accident never happens again after the fire at Tsuruga Research and Production Center in the year before last. However,
Slide 20: 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
Slide 21: All Rights Reserved
All Rights Reserved
Slide 22: Appendix
Appendix
Slide 23: Identifying Materiality
Identifying Materiality Basic preconditions to materiality Safety, disaster prevention, Corporate governance Respect for human rights quality Continuing to be a Group that “creates the solutions needed by people and the earth” Innovation based on responsibility for the future: Realizing clean techno
Slide 24: Environmentally conscious products: ECO-PARTNER SYSTEM
Environmentally conscious products: “ECO-PARTNER SYSTEM” - In FY 3/20, sales of ¥60.6 bn. and net sales ratio of 30.4%. - Divide the process into six stages and evaluate the environmental impact of each stage from raw materials to disposal. - Five evaluation standards of “prevention of global warmin
Slide 25: Environmentally conscious products: ECO-PARTNER SYSTEM
Environmentally conscious products: “ECO-PARTNER SYSTEM” Net sales of ¥60.6 bn. FY 3/20 Figures are net sales. Contains overlap since multiple standards are applicable for one product. Ex: “ECOSYAR” is applicable for both conservation of materials and reduction in harmful chemical substances. Forwar
Slide 26: Business performance
Business performance (¥ bn.) FY 3/20 FY 3/21 Net sales Q1 Q2 H1 H2 full year Q1 Q2 H1 Films and Funcitonal Materials 29.5 30.4 59.9 67.2 127.1 36.3 37.5 73.8 Mobility 11.7 10.5 22.2 21.7 43.9 6.8 8.2 15.0 Lifestyle and Environmental 30.7 33.1 63.8 64.6 128.4 22.9 27.3 50.2 Life Science 6.0 6.5 12.5
Slide 27: 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
Slide 28: All Rights Reserved
All Rights Reserved