Toyobo Co., Ltd. · TSE:3101
Toyobo — FY2013 Earnings Presentation
25 slides from Toyobo's earnings presentation, May 10, 2013
Slide 1: Presentation to Investors
Presentation to Investors Toyobo Co., Ltd. May 10, 2013 (Analysts’ Meeting)
Slide 2: Highlights
Highlights FY 3/13 Results Operating income declined, because of the delay in the recovery of profitability in the films business, meanwhile net income increased. - Although the unit volume of films for LCDs recovered, unit prices were stagnant. Experienced delays in passing on costs of packaging fi
Slide 3: Contents
Contents I Results of FY 3/13 II Forecasts for FY 3/14 III Medium-Term Management Plan (FY 3/11-FY 3/14) Ⅳ Litigation
Slide 4: I. Results of FY 3/13
I. Results of FY 3/13
Slide 5: (1) Results of FY 3/13
(1) Results of FY 3/13 (\ bn.) FY 3/13 Previous FY 3/12 Change forecasts H1 H2 Amount ％ Feb. 2013 Net sales 349.5 171.1 167.9 339.0 -10.5 -3.0% 350.0 Operating income 18.3 7.6 9.4 17.1 -1.2 -6.7% 18.0 Ratio to sales 5.2% 4.5% 5.6% 5.0% - - 5.1% Net income 4.6 2.7 4.9 7.6 +3.1 +66.5% 6.4 EPS (\) 5.17
Slide 6: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [ FY 3/12 FY 3/13 ] Raw material and fuel costs increase Changing in depreciation -0.7 Volume methods decrease +3.3 -1.5 Down in prices Lower cost Appreciation -2.5 of the yen basis (sales price) -1.2 +1.4 18.3 17.1 FY 3/12 FY 3/13 (¥ bn.) FY 3/12 FY 3/13 1Q
Slide 7: (2) Financial Position
(2) Financial Position ( \ bn.) Mar. 31, Mar. 31, Change 2012 2013 Total assets 437.8 447.4 +9.6 Cash and deposits 9.6 26.6 +17.0 Inventories 77.6 71.0 -6.6 Net assets 147.7 155.5 +7.8 Shareholders' equity 130.6 138.0 +7.5 (Equity ratio) 29.8% 30.9% - Interest-bearing debt 154.9 159.4 +4.5 D/E ratio
Slide 8: (3) Results by Segment
(3) Results by Segment (\ bn.) Net sales Operating income FY 3/13 FY 3/13 FY 3/12 FY 3/12 H1 H2 H1 H2 Films & Functional Polymers 138.4 70.5 66.8 137.4 8.6 4.3 3.3 7.6 Industrial Materials 71.2 35.0 36.8 71.9 5.3 2.6 2.9 5.5 Life Science 26.6 12.6 12.2 24.8 4.1 1.6 2.6 4.2 Specialty Businesses 236.2
Slide 9: 1) Films & Functional Polymers
1) Films & Functional Polymers Packaging films: Conditions difficult because of delay in revising prices Industrial films: Unit volume for LCD use recovered and launched new products Net sales (¥ bn.) Operating income (¥ bn.) 138.4 137.4 8.6 7.6 (6.2%) (5.6%) 65.2 66.8 2.5 3.3 73.3 70.5 6.1 4.3 H2 H
Slide 10: 2) Industrial Materials
2) Industrial Materials Airbag fabrics and high-performance fibers holding firm Substantial decline in tire cord sales due to changes in user procurement strategies Net sales (¥ bn.) Operating income (¥ bn.) 71.2 71.9 5.3 5.5 (7.5%) (7.6%) 36.9 36.8 2.9 2.9 34.3 35.0 2.4 2.6 H2 H2 FY 3/12 FY 3/13 FY
Slide 11: 3) Life Science
3) Life Science Recovery in diagnostic reagents and medical membranes began in second quarter Commenced marketing of NerbridgeTM, a device for the regeneration of damaged peripheral nerves Net sales (¥ bn.) Operating income (¥ bn.) 26.6 24.8 4.1 4.2 (15.5%) (16.8%) 13.4 12.2 2.1 2.6 13.1 12.6 2.0 1.
Slide 12: 4) Textiles
4) Textiles Substantial decline in income due to inventory valuation losses in the first quarter Sales of sports apparel steady, profitability of sales for Arabic traditional men’s wear of the Middle East improves Net sales (¥ bn.) Operating income (¥ bn.) 88.0 79.2 43.8 38.4 1.1 (1.2%) 0.2 0.2 44.2
Slide 13: II. Forecasts for FY 3/14
II. Forecasts for FY 3/14
Slide 14: (1) Forecasts for FY 3/14
(1) Forecasts for FY 3/14 ( \ bn.) FY 3/12 FY 3/13 Change (Forecasts) Amount ％ Net sales 339.0 350.0 +11.0 +3.2% Operating income 17.1 22.0 +4.9 +28.7% Ratio to sales 5.0% 6.3% - - Net income 7.6 9.5 +1.9 +25.0% EPS (\ ) 8.61 10.69 - - Depreciation 13.2 14.0 +0.8 - Capital expenditures 18.0 18.0 -0.
Slide 15: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [Forecasts: FY 3/13 → FY 3/14] Appreciation of the yen Lower Cost (sales price) Reducing Basis +2.0 costs Increase +1.0 in volume +3.0 Rise in prices +3.0 Others -1.8 +4.3 MG90 22.0 17.1 Raw material and fuel costs increase -6.6 FY 3/13 FY 3/14 (¥ bn.) FY 3/13
Slide 16: (2) Forecasts by Segment
(2) Forecasts by Segment (\ bn.) Net sales Operating income FY 3/13 FY 3/14 FY 3/13 FY 3/14 Forecasts Forecasts Films & Functional Polymers 137.4 144.0 7.6 9.6 Industrial Materials 71.9 73.0 5.5 6.5 Life Science 24.8 28.0 4.2 5.3 Specialty Businesses 234.1 245.0 17.3 21.4 Operating income ratio (%)
Slide 17: III. Medium-Term Management Plan (FY 3/11-FY 3/14)
III. Medium-Term Management Plan (FY 3/11-FY 3/14)
Slide 18: Action Plan
Action Plan 1) Capital investment (including Alliances and M&A) 2) Overseas business development 3) Improvement in the product portfolio 4) Improving asset efficiency 18
Slide 19: Progress of Action Plan: Capital investment
Progress of Action Plan １） Capital investment (including Alliances and M&A) • Hybrid-type equipment for the production of PET film for industrial and packaging use (H2 FY 3/14) ・ Contract manufacturing pharmaceuticals (H1 FY 3/14) ・Manufacturing and marketing bases for new cushion materials “BREATHA
Slide 20: Progress of Action Plan: Overseas business development
Progress of Action Plan 2) Overseas business development Shrinkable polyester film: H1 FY 3/14 New cushion materials Airbag fabrics: H1 FY 3/13 Engineering plastics: H1 FY 3/14 “BREATHAIR®” Engineering plastics : H1 FY 3/14 Airbag fabrics: H2 FY 3/13 Industrial adhesives Filters VOC※ emissions treat
Slide 21: Progress of Action Plan: Improvement in the product portfolio
Progress of Action Plan 3) Improvement in the product portfolio 【Industrial film】 New polyester film for LCD and optical layers Elimination of (Super retarder film: SRF) interference fringes ・ Principal uses: As protective film for polarizing plates Sales target for FY3/16: ・ Began to sell them to a
Slide 22: Our Vision
Our Vision Become “the category leader that continues to create new value that contributes to society in the environment, life science, and high-function products fields. ” Company that combines both growth potential and stability 【Targets for FY 3/21】 Sales: ¥500 bn. Operating income: ¥50 bn. ROA
Slide 23: IV. Litigation
IV. Litigation
Slide 24: Progress of Litigation regarding Body Armor Using ZYLON Fiber
Progress of Litigation regarding Body Armor Using ZYLON Fiber 1) In June 2003, an accident with 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 same type of BA sued the
Slide 25: 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