Slide 1: Financial Results for FY2018
Financial Results for FY2018 February 15, 2019 This document is a translation of the official Japanese version provided for information purpose only.
Slide 2: Overview of Results for FY2018
Overview of Results for FY2018 Scope of consolidation Number of consolidated subsidiaries: 21 (increase of 1 from FY2017: Aronkasei (Thailand) Co., Ltd. established in July 2018) Number of equity-method affiliates: 2 (no change) FY2017 FY2018 Change (Millions of Net sales yen) 144,708 150,066 5,358
Slide 3: Summary of Financial Results for FY2018
Summary of Financial Results for FY2018 <Business Environment> ・ The Japanese economy continued a mild recovery although economic growth lacked vigor. ・ The outlook for global economy was increasingly uncertain due to the expanding trade war between the U.S. and China, among other factors. ・ The ris
Slide 4: Consolidated Results (by Segment)
Consolidated Results (by Segment) Net sales (by consolidated segment) (Millions of yen) Changes in net sales FY2017 FY2018 Volume Unit price Change Commodity Chemicals 66,630 69,908 -1,870 5,148 3,278 Polymer & Oligomer 28,096 29,506 1,184 225 1,409 Adhesive Material 12,010 11,914 -66 -30 -96 Perfor
Slide 5: Other Income/Expenses and Extraordinary Income/Loss (Consolidated)
Other Income/Expenses and Extraordinary Income/Loss (Consolidated) [Other income/expenses] [Extraordinary income/loss] (Millions of yen) (Millions of yen) FY2017 FY2018 Change FY2017 FY2018 Change Interest and dividend Gain on sales of income 818 868 50 non-current assets 369 5 -364 Equity in earnin
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet (Millions of yen) Dec. 31, Dec. 31, Change [Balance Sheet] 2017 2018 Cash and deposits 29,636 32,676 3,040 ①Market value of investment securities Notes and accounts decreased because of a downturn of the receivable 42,583 45,154 2,571 stock market. Securities 47,000 46,000
Slide 7: Overview of Consolidated Subsidiaries (Results for FY2018)
Overview of Consolidated Subsidiaries (Results for FY2018) (Millions of yen) Net income (loss) Ownership Net sales Operating income (loss) attributable to owners of Company name Segment (%) parent FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 Commodity 1 Toa Techno-Gas Chemicals 100 4,672 4,940 542 634
Slide 8: Challenges in FY2019
Challenges in FY2019 Changes in the external environment such as growing trade protectionism and Brexit are likely to become destabilizing factors in the global economy. Continue to improve productivity through high level of capital investment and operational reform. Revise corporate philosophy on t
Slide 9: Consolidated Results Forecast for FY2019
Consolidated Results Forecast for FY2019 (Millions of yen) FY2019 1H FY2019 2H FY2019 forecast Change FY2018 (A) (forecast) (forecast) (B) (B-A) Net sales 150,066 73,000 77,000 150,000 -66 Operating income 16,408 7,700 8,800 16,500 92 Operating income ratio 10.9% 10.5% 11.4% 11.0% 0.1% Other income/
Slide 10: Consolidated Results Forecast for FY2019 (by Segment)
Consolidated Results Forecast for FY2019 (by Segment) Net sales (Millions of yen) FY2018 results FY2019 forecast Change Factors for change Commodity [Decrease] Caustic soda, acrylic monomer, industrial 69,908 66,100 -3,808 Chemicals gases Polymer & 29,506 30,800 1,294 [Increase] Acrylic polymer, flo
Slide 11: Historical Consolidated Results
Historical Consolidated Results (Millions of yen) (Yen ) * The Company conducted a 1-for-2 stock consolidation of its common stock whose effective date was July 1, 2015. Net income per share is calculated based on the assumption that the stock consolidation was conducted at the beginning of each fis
Slide 12: Reference for Consolidated Performance
Reference for Consolidated Performance (Billions of yen) FY2019 FY2015 FY2016 FY2017 FY2018 forecast Capital investment (acceptance basis) 5.8 5.1 10.0 12.5 12.0 Capital investment (approval basis) 4.8 13.2 22.1 17.0 13.0 Depreciation and amortization 8.8 7.9 7.9 8.3 9.1 Research and development exp
Slide 13: Historical Reference for Consolidated Performance
Historical Reference for Consolidated Performance (Millions of yen) (Millions of yen) 77.8% 76.5% 76.3% 77.0% 76.0% 12
Slide 14: Overview of Consolidated Subsidiaries (FY2019 Forecast)
Overview of Consolidated Subsidiaries (FY2019 Forecast) (Millions of yen) Net income (loss) Net sales Operating income (loss) attributable to owners of Ownership Company name Segment (%) parent FY2019 FY2019 FY2019 FY2018 FY2018 FY2018 forecast forecast forecast Commodity 1 Toa Techno-Gas Chemicals
Slide 15: Operating Income Trend for High-Value-Added Products and Commodity Products
Operating Income Trend for High-Value-Added Products and Commodity Products (Billions of yen) 汎⽤製品 Commodity products ⾼付加価値製品 High-value-added products 17.5 16.1 16.4 16.5 14.5 6.8 12.0 12.3 5.9 7.1 6.6 6.5 3.1 3.6 10.2 10.7 9.9 8.4 9.2 9.3 8.0 2013年 FY2013 2014年 FY2014 2015年 FY2015 2016年 FY2016 201
Slide 16: Business Status (Polymer & Oligomer Segment)
Business Status (Polymer & Oligomer Segment) Launch of “ARON NT-Z” water-absorbent resin for cosmetics Using our core technologies of controlling polymer microparticles, we developed a cosmetics material that is effective in moisturizing the skin and erasing wrinkles, and began its sales in 2018. La
Slide 17: Business Status (Adhesive Material Segment)
Business Status (Adhesive Material Segment) “Aron Mighty AF700” low dielectric constant adhesive film We developed a low dielectric constant adhesive agent for FPC compatible with high-speed, high-capacity telecommunications such as 5G telecommunications and 8K television. Sales launch of “ShoeGoo ×
Slide 18: Business Status (Performance Chemicals Segment/Plastics Segment)
Business Status (Performance Chemicals Segment/Plastics Segment) IXE Performance Chemicals Segment Adoption of ion-trapping agent “IXEPLAS” moves into full gear Comprising sub-micron-level fine particles, IXEPLAS displays equal or greater ion-trapping capability with less additives than previous pro
Slide 19: Toagosei Group Topics in 2nd Half of FY2018 (1)
Toagosei Group Topics in 2nd Half of FY2018 (1) Status of progress on Toagosei Thailand Project Full-scale operations begun at acrylic polymer plant and construction started on elastomer plant Production of high-function acrylic polymers began in August 2018, and we are expanding into the automobile
Slide 20: Toagosei Group Topics in 2nd Half of FY2018 (2)
Toagosei Group Topics in 2nd Half of FY2018 (2) 75th Anniversary Project Turning chemistry’s wonders into future inspiration Establishment of new corporate philosophy On the occasion of our 75th anniversary in 2019, we established a new corporate philosophy: “Through the endless possibilities of che
Slide 21: Toagosei Group Topics in 2nd Half of FY2018 (3)
Toagosei Group Topics in 2nd Half of FY2018 (3) Promoting greater operational efficiency at indirect departments Integration of purchasing, order reception, and management departments within the Group We will introduce RPA, etc. in order to shift human resources to higher-added-value operations and