Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/14 Earnings Presentation
28 slides from Toyobo's earnings presentation, Nov 6, 2013
Slide 1: Presentation to Investors
Presentation to Investors Ryuzo Sakamoto President Toyobo Co., Ltd. November 6, 2013 (Analyst Meeting)
Slide 2: Highlights
Highlights H1 FY 3/14 Results Operating income rose 48% year on year. Despite moderate recovery in industrial films, films overall faced tough operating conditions, as upward revisions in prices for packaging films were delayed. Sales expansion of the life science segment and recovery in textile
Slide 3: Contents
Contents I Results for H1 of FY 3/14 II Forecasts for FY 3/14 III Progress of strategic actions Ⅳ Litigation
Slide 4: I. Results for H1 of FY 3/14
I. Results for H1 of FY 3/14
Slide 5: Results for H1 FY 3/14: PL, CF
(1) Results for H1 FY 3/14 1) PL.CF \ bn. H1 H2 H1 Previous YoY FY 3/13 FY 3/13 FY 3/14 forecasts Amount ％ (Aug. 2013) Net sales 171.1 167.9 174.5 +3.4 +2.0% 172.0 Operating income 7.6 9.4 11.3 +3.6 +47.6% 10.0 Ratio to sales 4.5% 5.6% 6 .5 % － － Net income 2.7 4.9 5.2 +2.5 +90.8% 4.3 EPS (\) 3.1 5.
Slide 6: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [H1 FY 3/13 H1 FY 3/14] Depreciation Others of the yen +1.6 Increase in (sales price) raw material +2.5 and fuel costs Volume Rise increase -3.6 in prices +0.9 +2.2 7.6 11.3 H1 FY 3/13 H1 FY 3/14 (¥ bn.) H1 H1 FY 3/13 FY 3/14 Naphtha price in Japan 55 65 （tho
Slide 7: BS
2) BS \ bn. Mar. 31, Mar. 31, Sept. 30, Change 2012 2013 2013 Total assets 437.8 447.4 446.5 -0.9 Inventories 77.6 71.0 72.6 1.6 Net assets 147.7 155.5 160.5 5.0 Shareholders' equity 130.6 138.0 143.0 5.0 (Equity ratio) 29.8% 30.8% 32.0% － Interest-bearing debt 154.9 159.4 152.5 -6.9 D/E ratio 1.19
Slide 8: Results by Segment
(2) Results by Segment \ bn. Net Sales Operating Income(Loss) H1 H2 H1 H1 H2 H1 FY 3/13 FY 3/13 FY 3/14 FY 3/13 FY 3/13 FY 3/14 Films & Functional Polymers 70.5 66.8 74.9 4.3 3.3 4.8 Industrial Materials 35.0 36.8 34.7 2.6 2.9 2.3 Life Science 12.6 12.2 13.1 1.6 2.6 2.6 Specialty Businesses 118.2 11
Slide 9: Films & Functional Polymers
1) Films & Functional Polymers Moderate recovery in industrial films Tough operating conditions due to the delay in upward price revision for packaging films Net sales (¥ bn.) Operating income (¥ bn.) 74.9 4.8 70.5 66.8 4.3 (6.5%) (6.1%) 37.0 3.3 35.0 (5.0%) 2.4 2.6 35.5 37.9 1.7 2.4 Q2 Q2 H1 H2 H1
Slide 10: Industrial Materials
2) Industrial Materials Sales of airbag fabrics held firm, and sales of materials for consumer and industrial uses were strong. Functional filters continued to be in difficult operating conditions. Net sales (¥ bn.) Operating income (¥ bn.) 36.8 34.7 35.0 2.9 2.6 (7.8%) (7.4%) 2.3 17.7 17.5 (6.8%) 1
Slide 11: Life Science
3) Life Science Performance of diagnostic enzymes and pharmaceuticals was favorable. Full-scale marketing of “Nerbridge” began, after the National Health Insurance system declared insurance coverage. Net sales (¥ bn.) Operating income (¥ bn.) 12.6 13.1 2.6 2.6 12.2 (21.0%) (20.1%) 7.2 1.6 7.2 (12.7%
Slide 12: Textiles
4) Textiles Profitability of sports apparel deteriorated because of the decline in the value of the yen, but sales to the Middle East improved substantially. Net sales (¥ bn.) Operating income (loss) (¥ bn.) 40.8 39.7 1.8 38.4 (4.3%) 21.4 0.7 21.0 0.9 (1.9%) -0.5 (-1.3%) 0.8 19.4 0.1 18.7 -0.7 Q2 Q2
Slide 13: II. Forecasts for FY 3/14
II. Forecasts for FY 3/14
Slide 14: Forecasts for FY 3/14
(1) Forecasts for FY 3/14 \ bn. FY 3/13 FY 3/14 (Forecasts) Change H1 H2 Amount ％ Net sales 339.0 174.5 175.5 350.0 +11.0 +3.2% Operating income 17.1 11.3 10.7 22.0 +4.9 +28.8% Ratio to sales 5.0% 6.5% 6.1% 6.3% － － Net income 7.6 5.2 4.3 9.5 +1.9 +24.4% EPS (\ ) 8.6 5.8 4.9 10.7 － － Depreciation 13
Slide 15: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income [Forecasts: FY 3/13→ FY 3/14] Depreciation of the yen Others Increase in (sales price) raw material +2.2 and fuel costs Volume +3.6 Rise increase -6.9 in prices +1.5 +4.5 17.1 22.0 FY 3/13 FY 3/14 FY 3/14 FY 3/13 (¥ bn.) Naphtha price in Japan 58 67 （thousand
Slide 16: Forecasts by Segment
(2) Forecasts by Segment Net sales Operating income FY 3/13 FY 3/14 (Forecast) FY 3/13 FY 3/14 (Forecast) H1 H2 H1 H2 Films & 137.4 74.9 74.1 149.0 7.6 4.8 4.8 9.6 Functional Polymers Industrial Materials 71.9 34.7 36.3 71.0 5.5 2.3 2.8 5.1 Life Science 24.8 13.1 13.9 27.0 4.2 2.6 2.8 5.4 Specialty
Slide 17: III. Progress of strategic actions
III. Progress of strategic actions
Slide 18: Strategic Actions
(1) Strategic Actions 1 Investment 2 Overseas Business Concentrating on Manufacturing and marketing company competitive specialty businesses for “VYLON” established in Thailand New polyester film facilities Manufacturing and marketing bases for (H2 FY 3/14) airbag fabrics in Asia and the U.S. Contra
Slide 19: Overseas Business
(2) Overseas Business China Polyester shrinkable film Engineering plastics Functional cushion North America materials Industrial adhesives Airbag fabrics, Filters Airbag fabrics “BREATHAIR” VOC※ emissions Engineering plastics treatment equipment Diagnostics South Korea / Taiwan Middle East PET films
Slide 20: Industrial Film: SRF
“SRF” 【Industrial Film】 New polyester film for LCDs, “Super Retarder Film” ・ Principal application: Launched in December 2012 Protective film for polarizing plates Sales target for FY3/16 ・ Competing with TAC, COP, acryl polymers/ Cost advantage ¥15 billion ・ Existing production lines can be used ¥
Slide 21: Life Science: Nerbridge
“Nerbridge” 【Life Science】 A new medical treatment device for regeneration of damaged peripheral nerves ・ The first such device in Japan Launched in March 2013 ・ Can replace nerve sutures and autografts Sales target for FY3/16 ・ Can be used in primary emergency hospitals ¥5 billion ・ Materials to be
Slide 22: M&A in Bioproduct Business
M&A in Bioproduct Business Acquired Spain’s manufacturer and marketer of diagnostic reagents and instruments -Toyobo’s first M&A in bioproduct business- ・Objectives - To utilize Spinreact’s global sales network (90 countries) for promoting Toyobo’s bioproducts - To expand our product lineup - To sec
Slide 23: 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” fields Be a company that combines both growth potential and stable profitability Sales: ¥500 bn. ,Operating income: ¥50 bn.
Slide 24: IV. Litigation
IV. Litigation
Slide 25: 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 26: Appendix
Appendix
Slide 27: Specialty Businesses and Market Fields
Specialty Businesses and Market Fields Electronics & Fields: Automotive Information Environment Life Science Lifestyle & Display Safety Business Segments • PET films for optical uses • For photovoltaic systems ・Packaging Films & •Engineering plastics films Functional •Biomass high-melting-point Poly
Slide 28: 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