Unicharm Corporation · TSE:8113
Unicharm — H1 2018 Earnings Presentation
22 slides from Unicharm's earnings presentation, Aug 6, 2018
Slide 1: First Half of Fiscal Year Ending December 31, 2018 Financial Performance
First Half of Fiscal Year Ending December 31, 2018 Financial Performance Unicharm Investor Meeting Presentation Materials August 6, 2018 Takahisa Takahara President and CEO Unicharm Corporation Projections stated in these materials include those based on the Company’s currently obtained assumptions,
Slide 2: Financial Performance Summary: First Half of Fiscal Year Ending December 31, 2018
Financial Performance Summary: First Half of Fiscal Year Ending December 31, 2018 ◆ 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 rights
Slide 3: Financial Results Summary
First Half of Fiscal Year Ending December 31, 2018 Financial Results Summary Consolidated results (New record high established) Sales of 325.7 billion JPY (23.7 billion JPY/7.8% increase), core operating income 47.3 billion JPY (8.3 billion JPY/21.4% increase). Significant improvement of core
Slide 4: Consolidated account highlights
23.7 Billion JPY Sales Increase (+7.8%), 8.3 Billion JPY Core Operating Income Increase (+21.4%) Both New Record Highs Achieved Net Sales and Income Forecast for ２Q Accumulated Results Forecast Consolidated account highlights (Millions of yen) 1H of FY (Forecast) 1H of FY Ending Difference １H of F
Slide 5: Core operating income fluctuation
Through continuous marketing investment effects, increase in sales volume, improvement of product mix, and etc. absorbed the rise of raw material prices. Core operating income margin increased by 8.3 billion JPY, and profitability improved significantly Core operating income fluctuation (100 milli
Slide 6: Geographical segment information
For Japan, BC cross-border continued high growth and other businesses developed favorably. For Asia , profitability improved in principal countries such as Thailand, China, and Indonesia Geographical segment information (Millions of yen) 1H *1 1H (Ref.) of FY Difference of FY Ended Difference Actu
Slide 7: Core operating income margin by geographical segment
For Japan, with export expansion and advancement of high value-added needs, high profitability was sustained For Asia, profitability improved steadily in principal countries Among them, China FC and Thailand FC and others continued strong performance Core operating income margin by geographical se
Slide 8: Business Segment Information
Japan PC improved steadily, especially toiletry products For North America PC, product strength progress weakened due to climate effects, but profitability improved due to product mix readjustment Business Segment Information (Millions of yen) 1H of FY 1H of FY Difference Ended Dec. Ending Dec. Di
Slide 9: Overseas sales composition ratio 60.0%
Overseas sales composition ratio 60.0% （60.1％ excluding exchange effects） Domestic / overseas sales (Billions of yen) *2 63.5％ 70% 450 62.0％ 400 65.6% 60% 63.3% 58.5% 59.3% 59.8% 60.0% 350 50% 51.7% 50.3% 300 48.0% 44.2% 44.0% 40% 250 43.1% 43.0% 37.2% 30% 200 150 20% 100 10% 50 0 0% '12/2Q '13/2Q
Slide 10: Effects of exchange fluctuations
Effects of exchange fluctuations Approx. 500 million yen decrease in sales Approx. 20 million yen increase in core operating income Rate fluctuations by currency Exchange rate Exchange rate Currency Change in rate Jan-Jun 2017 Jan-Jun 2018 China (CNY) 16.39 17.09 +4.3% Indonesia (IDR) 0.0085 0.007
Slide 11: Fiscal Year Ending December 31, 2018 Earnings Forecast
Fiscal Year Ending December 31, 2018 Earnings Forecast Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 12: Consolidated earnings forecast
Strong results were expected to be maintained in both the first and second half of the fiscal period, but due to greater raw material price changes than expected, initial performance forecasts were deferred Consolidated earnings forecast (Millions of yen) *1 FY Ended FY Ending (Reference) Differen
Slide 13: Shareholder Return Policy
Shareholder Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 14: Shareholder return policy
Total return ratio of 50% scheduled in FY 2018 Shareholder return policy (Millions of yen) 60% Dividends Purchase of own shares Total return ratio 35,000 50% 50% 30,000 25,000 40% 20,000 30% 15,000 20% 10,000 10% 5,000 0 0% '10/3 '11/3 '12/3 '13/3 '14/3 '14/12※1 '15/12 '16/12 '17/12 '18/12E *1: Fi
Slide 15: Dividends per share
Steady and continuous dividend payments, on track for 17 consecutive periods of increased dividends Raise dividend payout ratio in stages Dividends per share (JPY) Annual dividend (JPY) Consolidated divident payout ratio 35% 30 30% Approx. 24% 25% 20 20% 15% 24 10 20 10% 15 16 13 13 11 11 5% 9 8 0
Slide 16: Raising Corporate Value
Raising Corporate Value Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 17: Initiatives to achieve a Cohesive Society and resolve key challenges
Through our initiatives to achieve Unicharm’s envisioned “Cohesive Society”, resolve important issues and achieve sustainable growth SustainableDevelopment Goals (SDGs) Unicharm’s Key Challenges 1. Lengthening Healthy Life Expectancy 4. Contributing to the 2. Supporting Women's Community Independenc
Slide 18: Lengthening healthy life expectancy
Lengthening healthy life expectancy ◆Supporting healthy life expectancy with “Lifree” Contributing to lengthening healthy life expectancy with Lifree “Social Walking”* * A neologism formed by combining societal participation and walking, this is a walking program implemented to prevent dementia th
Slide 19: Supporting women's independence and improving hygiene in emerging countries
Supporting women's independence and improving hygiene in emerging countries ◆Efforts to eliminate “I can't go to school because I am menstruating” Expansion of first menstruation educational programs in India, Indonesia, and Myanmar ◆Job Support at a Women-Only Factory in Saudi Arabia Further ex
Slide 20: Contribution to Environmental and Sustainability Possibilities
Contribution to Environmental and Sustainability Possibilities ◆Activities towards recycling disposable diapers Diaper recycling model aimed at by Unicharm We treat low-quality pulp with our unique ozone process after extracting it from used disposable diapers. This has made it possible to bre
Slide 21: Contributing to the Community
Contributing to the Community ◆Contributing to the “Support of Disaster-Affected Areas” Continuing the Matching Fund* which combines Disaster-Affected Area Support and energy- saving initiatives *Created for the “Support of Disaster-Affected Areas”. Original polo shirts, jumpers, and goods are sol
Slide 22: Copyright Corporation. All rights
Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 22