UBE Corporation · TSE:4208
UBE — H1 FY2023 Earnings Presentation
39 slides from UBE's earnings presentation, Nov 6, 2023
Slide 1: Financial Results for the 1st half FY2023
Financial Results for the 1st half FY2023 Explanatory material November 6, 2023 1st Half: April - September
Slide 2: FY2023 1st half Consolidated Result
FY2023 1st half Consolidated Result
Slide 3: Scope of Consolidation
1st half of the FY2023 Scope of Consolidation End of End of Difference Item FY2022 FY2023 2Q Notes (A) (B) （B) - （A) Number of consolidated 36 36 - subsidiaries Number of equity method 15 15 - affiliates Total 51 51 - 3
Slide 4: Environmental Factors
1st half of the FY2023 Environmental Factors FY2022 2Q FY2023 2Q Difference Item (A) (B) (B) - (A) Exchange Rate Yen/$ 134.0 141.0 7.0 CIF $/ｔ 892 654 (238) Naphtha 83,750 65,350 (18,400) Material Price Domestic Yen/KL Benzene (ACP) $/ｔ 1,171 906 (265) Australian $/ｔ 406.5 208.3 (198.3) Coal 2021年度
Slide 5: Major P/L Items
1st half of the FY2023 Major P/L Items (Billions of yen) FY2022 2Q FY2023 2Q Difference Percentage Item change (A) (B) (B) - (A) Net sales 244.8 218.1 (26.7) (10.9)% Operating profit 8.5 5.2 (3.3) (38.7)% Ordinary profit (loss) (2.7) 11.3 14.0 － Profit (loss) attributable (1.3) 9.0 10.3 － to owners
Slide 6: Net Sales and Operating Profit by Segment
1st half of the FY2023 Net Sales and Operating Profit by Segment O (Billions of yen) r FY2022 2Q FY2023 2Q Difference Percentage Segment (A) (B) (B) - (A) change d Specialty Products 31.8 31.3 (0.5) (1.6)% i Net sales Polymers & Chemicals 149.5 120.2 (29.3) (19.6)% nMachinery 45.3 42.7 (2.6) (5.8)%
Slide 7: Analysis - Total
1st half of the FY2023 Analysis － Total (Billions of yen) Net Sales Qualitative Information 300.0 244.8 (26.7) Specialty Products (0.5) Net sales: Down 218.1 Polymers & Chemicals (29.3) • Polymers & Chemicals: Decreased sales volume of nylon polymers, caprolactam, and other products Machinery (2.6)
Slide 8: Analysis - Specialty Products
1st half of the FY2023 Analysis － Specialty Products (Billions of yen) Net Sales Qualitative Information 40.0 Net sales: Down 31.8 (0.5) 31.3 • Separation membranes: Strong demand mainly for biogas-related applications • Separators: Affected by the negative impact of production reduction 20.0 in the
Slide 9: Analysis - Polymers & Chemicals
1st half of the FY2023 Analysis － Polymers & Chemicals (Billions of yen) Net Sales Qualitative Information 200.0 Net sales: Down (29.3) • Nylon polymers: Decline in demand for food packaging film and 149.5 lower sales prices due to lower prices of raw material caprolactam Performance Polymers 120.2
Slide 10: Analysis - Machinery
1st half of the FY2023 Analysis － Machinery (Billions of yen) Net Sales Qualitative Information 60.0 Net sales: Down (2.6) 45.3 • Molding machine: slowdown in capital investment in the automobile 42.7 industry • Steel products: Decreased sales volume due to declining demand 30.0 Operating profit: Up
Slide 11: Analysis - Others
1st half of the FY2023 Analysis － Others (Billions of yen) Net Sales Qualitative Information 50.0 +4.6 38.0 33.4 Net sales: Up Pharmaceutical 9.7 • Pharmaceutical: Consolidation of API Corporation 25.0 Power (0.9) etc Operating profit: Up • Consolidation of API Corporation 0.0 13.8% Increased FY2022
Slide 12: Operating Profit - Profit attributable to owners of parent
1st half of the FY2023 Operating Profit － Profit attributable to owners of parent (Billions of yen) FY2022 2Q FY2023 2Q Difference Item (A) (B) (B) - (A) Operating profit 8.5 5.2 (3.3) Non-operating income (expenses) (11.3) 6.1 17.3 Net interests expenses 0.8 0.1 (0.7) Share of profit (loss) of enti
Slide 13: Consolidated Balance Sheet
1st half of the FY2023 Consolidated Balance Sheet (Billions of yen) End of FY2022 End of FY2023 2Q Difference Item (A) (B) (B) - (A) Current assets 283.1 275.4 (7.8) Fixed assets 449.4 467.8 18.4 Total assets 732.7 743.3 10.7 Interest-bearing debt 218.1 214.6 (3.6) Other liabilities 132.9 127.0 (5.9
Slide 14: Consolidated Statements of Cash Flows
1st half of the FY2023 Consolidated Statements of Cash Flows (Billions of yen) FY2022 Item FY2023 2Q 2Q Profit before income taxes 10.8 A.Cash flows from operating activities 11.3 23.4 Depreciation and amortization 13.0 etc. Acquisition of PP&E (14.3) B.Cash flows from investing activities (5.7) (17
Slide 15: FY2023 Consolidated Forecasts
FY2023 Consolidated Forecasts 15
Slide 16: Scope of Consolidation
2022年度 FY2023 連結業績予想 Consolidated Forecasts Scope of Consolidation End of End of Difference Item FY2022 FY2023 Notes (A) (B) （B) - （A) Number of consolidated 36 36 - subsidiaries Number of equity method 15 15 - affiliates Total 51 51 - 16
Slide 17: Environmental Factors
2022年度 FY2023 連結業績予想 Consolidated Forecasts Environmental Factors FY2022 FY2023 Difference Item (A) (B) (B) - (A) 140.5 Exchange Rate Yen/$ 135.5 5.0 [140.0] 660 CIF $/ｔ 793 (133) Naphtha [670] 66,200 76,400 (10,200) Material Price Domestic Yen/KL [67,200] Benzene 880 $/ｔ 1,038 (158) (ACP) [850] 198
Slide 18: Major P/L Items
2022年度 FY2023 連結業績予想 Consolidated Forecasts Major P/L Items (Billions of yen) FY2022 FY2023 Difference Percentage Item (A) (B) (B) - (A) change Net sales 494.7 484.0 (10.7) (2.2)% Operating profit 16.2 17.0 0.8 4.9% Ordinary profit (loss) (8.7) 26.5 35.2 － Profit (loss) attributable to owners of par
Slide 19: Net Sales and Operating profit by Segment
2022年度 FY2023 連結業績予想 Consolidated Forecasts Net Sales and Operating profit by Segment (Billions of yen) Segment FY2022 FY2023 Difference Percentage (A) (B) (B) - (A) change Specialty Products 62.2 67.5 5.3 8.6% Net sales Polymers & Chemicals 293.4 257.5 (35.9) (12.2)% Machinery 96.9 106.5 9.6 9.9% O
Slide 20: Analysis - Total
2022年度 FY2023 連結業績予想 Consolidated Forecasts Analysis － Total (Billions of yen) Net sales Revisions from the previous earnings forecasts published on May 12, 2023 700.0 (10.7) Specialty Products 5.3 Net sales: Downturn ［545.0 → 484.0, (61.0)］ 494.7 484.0 Polymers & Chemicals (35.9) • Polymers & Chemi
Slide 21: Analysis - Specialty Products
2022年度 FY2023 連結業績予想 Consolidated Forecasts Analysis － Specialty Products (Billions of yen) Net sales Revisions from the previous earnings forecasts published on May 12, 2023 90.0 +5.3 Net sales: Downturn ［71.5 → 67.5, (4.0)］ 67.5 62.2 • Decreased sales volume of separators due to the negative impac
Slide 22: Analysis - Polymers & Chemicals
2022年度 FY2023 連結業績予想 Consolidated Forecasts Analysis － Polymers & Chemicals (Billions of yen) Net sales Revisions from the previous earnings forecasts published on May 12, 2023 400.0 (35.9) Net sales: Downturn ［313.0 → 257.5, (55.5)］ 293.4 257.5 • Lower sales volumes and lower sales prices of nylon
Slide 23: Analysis - Machinery
2022年度 FY2023 連結業績予想 Consolidated Forecasts Analysis － Machinery (Billions of yen) Net sales Revisions from the previous earnings forecasts published on May 12, 2023 140.0 +9.6 Net sales: Downturn ［108.5 → 106.5, (2.0)］ 106.5 96.9 • Decreased sales volume of steel products due to declining demand 70
Slide 24: Analysis - Others
2022年度 FY2023 連結業績予想 Consolidated Forecasts Analysis － Others (Billions of yen) Net sales Revisions from the previous earnings forecasts published on May 12, 2023 100.0 +7.9 81.0 Net sales: Downturn (88.5 → 81.0, (7.5)] 73.1 • Decline in sales price of electricity due to lower coal prices Pharmaceut
Slide 25: Operating Profit - Profit attributable to owners of parent
2022年度 FY2023 連結業績予想 Consolidated Forecasts Operating Profit － Profit attributable to owners of parent (Billions of yen) FY2022 FY2023 Difference Item (A) (B) (B) - (A) Operating profit 16.2 17.0 0.8 Non-operating income (expenses) (25.0) 9.5 34.5 Share of profit (loss) of entities accounted for usi
Slide 26: Reference
Reference
Slide 27: Difference of Net sales
Reference: FY2023 Consolidated Forecast Difference of Net sales （Billions of yen） Previous Revised forecasts forecasts Difference Segment 2023/5/12 2023/11/2 Major factors (A) (B) (B) - (A) Specialty Products 71.5 67.5 (4.0) Performance Polymers & Chemicals (47.5) Polymers & Chemicals 313.0 257.5 (5
Slide 28: Difference of Operating profit
Reference: FY2023 Consolidated Forecast Difference of Operating profit （Billions of yen） Previous Revised forecasts forecasts Difference Segment Major factors 2023/5/12 2023/11/2 (A) (B) (B) - (A) Specialty Products 12.5 13.0 0.5 Performance Polymers & Chemicals (14.5) Polymers & Chemicals 12.0 (2.0
Slide 29: Progress of Major P/L Items
Reference: 1st half of the FY2023 Progress of Major P/L Items (Billions of yen) FY2022 Results (A) FY2023 Results (B) Difference (B) - (A) Item 2Q 2Q 2Q Progress Progress 244.8 218.1 Net sales 494.7 484.0 (10.7) (26.7) 49.5% 45.1% 8.5 5.2 Operating profit 16.2 17.0 0.8 (3.3) 52.6% 30.7% (2.7) 11.3 O
Slide 30: Net Sales
Reference: 1st half of the FY2023 FY2022 Net Sales (Billions of yen) FY2023 Full-year Segment Progress 1Q 2Q 3Q 4Q Total (forecast) Specialty Products 15.8 15.5 － － 31.3 67.5 46.3% Polymers & Chemicals 60.3 59.8 － － 120.2 257.5 46.7% Machinery 20.6 22.1 － － 42.7 106.5 40.0% Others 18.9 19.0 － － 38.0
Slide 31: Operating Profit
Reference: 1st half of the FY2023 Operating Profit (Billions of yen) FY2023 Full-year Segment Progress 1Q 2Q 3Q 4Q Total (forecast) Specialty Products 3.0 2.6 － － 5.7 13.0 43.5% Polymers & Chemicals (1.6) (0.8) － － (2.4) (2.0) －% Machinery 0.9 1.3 － － 2.2 6.5 33.1% Others 0.9 0.5 － － 1.4 4.0 35.5% A
Slide 32: 2Q on 1Q - Net Sales
Reference: 1st half of the FY2023 2Q on 1Q － Net Sales （Billions of yen） FY2022 FY2023 Difference Segment 1Q 2Q Major factors (A) (B) (B) - (A) Specialty Products 15.8 15.5 (0.3) Performance Polymers & Chemicals (1.7) Polymers & Chemicals 60.3 59.8 (0.5) Elastmer 1.2 Machinery 20.6 22.1 1.5 Others 1
Slide 33: 2Q on 1Q - Operating Profit
Reference: 1st half of the FY2023 2Q on 1Q － Operating Profit （Billions of yen） FY2022 FY2023 Difference Segment 1Q 2Q Major factors (A) (B) (B) - (A) Specialty Products 3.0 2.6 (0.4) Performance Polymers & Chemicals 0.4 Polymers & Chemicals (1.6) (0.8) 0.8 Elastmer 0.3 Machinery 0.9 1.3 0.4 Others
Slide 34: Net Sales and Operating Profit by Business Portfolio
Reference: 1st half of the FY2023 Net Sales and Operating Profit by Business Portfolio (Billions of yen) FY2022 FY2023 FY2023 Difference Business portfolio 2Q 2Q full-year Progress (A) (B) (B) - (A) (forecast) Specialty business 65.1 73.8 8.7 157.5 46.8% Net sales Basic business 123.5 93.2 (30.3) 19
Slide 35: Mitsubishi UBE Cement
Reference: 1st half of the FY2023 Mitsubishi UBE Cement (Billions of yen) ■Major P/L Items ■Quantitative information Mitsubishi UBE Cement Corporation and Consolidated Subsidiaries FY2022 FY2023 FY2023 Item FY2022 FY2023 FY2023 2Q 2Q full-year Item 2Q 2Q full-year Total demand for Net Sales 281.4 29
Slide 36: Consolidated Key Indicators
Reference: 1st half of the FY2023 Consolidated Key Indicators (Billions of yen) FY2023 full-year FY2022 Item FY2022 2Q FY2023 2Q (forecast) full-year Capital investment 14.6 12.8 41.0 29.3 Depreciation and amortization 12.5 13.0 24.5 25.5 Research and development expenses 5.0 5.1 11.0 10.4 Adjusted
Slide 37: Consolidated Major Subsidiaries
Reference: 1st half of the FY2023 Consolidated Major Subsidiaries (Billions of yen) Difference of Net Sales operating Subsidiaries Business profit from FY2023 2Q FY2022 2Q Manufacture and sales of nylon, caprolactam, ammonium sulfate and UBE Corporation Europe, S.A. Unipersonal fine chemical product
Slide 38: Announcement of 3rd quarter Financial Results
Reference: IR Calendar Announcement of 3rd quarter Financial Results ➢ Announcement of 3rd Quarter Financial Results • February 5, 2024 15:00 ➢ 3rd Quarter Financial Results Briefing • February 5, 2024 18:00 ー 18:45 (Note) This schedule is subject to change without notice due to circumstances 38
Slide 39: Forward-looking statements notice
This presentation material contains forward-looking statements concerning UBE’s future plans, strategies, and performance. These forward- looking statements are not historical facts; rather, they represent assumptions and beliefs based on economic, financial, and competitive conditions currently obs