Slide 1: Kureha Corporation Reports Fiscal 2019 Results (IFRS)
Kureha Corporation Reports Fiscal 2019 Results (IFRS) Special note: Due to the global uncertainty caused by COVID-19, this report does not contain forecasts for FY2020. Kureha will provide forecasts at the earliest opportunity. Tokyo, Japan – May 2020 – Kureha Corporation (“Kureha”), a leading globa
Slide 2: Summary of Consolidated Full-year Results
continue selection and concentration in FY2020 and determine how to best invest resources with a view to portfolio optimization. Fourth, we must speed up the commercialization of promising seeds of research. We have made considerable progress here but can do more. Fifth, we must continue to strength
Slide 3: Other Operations and Advanced Materials Segment
Operating profit (loss) 0.7 1.1 Revenue 17.6 18.3 Other Operations Operating profit (loss) 2.1 2.7 Revenue 148.3 142.4 Segment total Operating profit (loss) 17.4 16.0 Adjustments 0.1 0.0 Gains on sales of noncurrent assets 0.0 10.2 Gains on discount business purchase - 1.5 Other income Gains on busi
Slide 4: PGA restructuring and PVDF demand
capable of sustained growth. To implement this change in strategy, Kureha recorded business restructuring expenses of approximately 10.6 billion yen in Q4 FY 2019. PVDF: External factors dampen demand growth in Q4 Demand for PVDF, a binder material for lithium-ion batteries (LiBs) that is vitally im
Slide 5: Specialty Chemicals Segment
Specialty Chemicals Segment Major product areas: industrial chemicals, agrochemicals, pharmaceuticals Specialty Chemicals revenue fell by 11% to 24.3 billion yen while operating profit decreased by 36% to 2.1 billion yen. Agrochemicals: Adverse weather conditions affect fungicide sales volumes In th
Slide 6: Construction and Other Operations
higher demand for NEW Krewrap. In fiber products, sales volumes of Kureha’s popular fishing line Seaguar also continued to grow. Food packaging materials: Lower sales volumes for heat-shrink multilayer film Slower sales of heat-shrink multilayer film in overseas markets resulted in lower revenue and
Slide 7: Capex, Depreciation, R&D and Debt
Backed by strong financial fundamentals, Kureha continues to invest heavily in future expansion for sustained long-term growth. Capital expenditure in FY2019 increased by 13% to 14.9 billion yen, mainly to upgrade production processes for existing products and to fortify corporate resources for new
Slide 8: Condensed Consolidated Balance Sheets and Statement of Income
Condensed Consolidated Balance Sheets As of March 31, 2019 and 2020 (Millions of yen) March 2019 March 2020 Assets Current assets 78,777 79,011 Cash and cash equivalents 5,989 7,268 Noncurrent assets 168,574 167,879 Property, plant and equipment 117,553 119,782 Intangible assets 1,094 842 Investment
Slide 9: FY2019 Financial Results
FY2019 Financial Results (Period April 1, 2019 - March 31, 2020) May 13, 2020
Slide 10: Contents
1 Contents 1. FY2019 Results 2. FY2020 Outlook • FY2019 Financial Summary 2-4 Notice regarding FY2020 guidance, • Performance by Segment 5-9 dividend payment & capital • Other Income and Expenses 10 investment 23 • FY2019 Results vs. Guidance 11-12 • Financial Position 13 • Cash Flow 14 • Key Indica
Slide 11: FY2019 Financial Summary - 1
2 FY2019 Financial Summary - 1 (in billions of yen) Change FY2019 Difference FY2018 FY2019 YOY Guidance vs. Results FY2019 vs. FY2018 -5.9 -9.6 • Revenue decreased due to declines Revenue 148.3 142.4 (-4.0%) 152.0 (-6.3%) in advanced products, specialty -1.4 -1.0 chemicals and packaging materials, C
Slide 12: FY2019 Financial Summary - 2
3 FY2019 Financial Summary - 2 (billions of yen) FY2018 AM SC SP CO OO Total Revenue 45.7 27.3 45.1 12.4 17.6 148.3 (Notes) Segment operating profit 4.6 3.3 6.7 0.7 2.1 17.4 Intersegment adjustment 0.1 Other income 0.6 Other expenses - Other expenses include losses on 0.9 retirement of noncurrent as
Slide 13: FY2019 Financial Summary - 3
4 FY2019 Financial Summary - 3 Segment performance (YoY) (billions of yen) Revenue Operating …FY2018 …FY2018 45.7 Profit 6.7 45.1 43.5 …FY2019 6.3 …FY2019 41.8 4.6 27.3 3.7 3.3 24.3 17.6 18.3 2.7 14.5 2.1 2.1 12.4 0.7 1.1 Advanced Specialty Specialty Other Advanced Specialty Specialty Other Construc
Slide 14: Performance by Segment: Advanced Materials
5 Performance by Segment: Advanced Materials (billions of yen) FY2018 FY2019 Change FY2019 vs. FY2018 % Advanced Materials Revenue Operating Profit Advanced plastics 28.5 27.4 -4% Advanced plastics -9% Revenue down due to declines in PPS and Carbon products 6.1 5.6 PVDF for industrial applications,
Slide 15: Performance by Segment: Specialty Chemicals
6 Performance by Segment: Specialty Chemicals (billions of yen) FY2018 FY2019 Change FY2019 vs. FY2018 % Specialty Chemicals Revenue Operating Profit Agrochemicals 8.3 5.8 -31% Agrochemicals Pharmaceuticals 5.0 4.9 -1% Revenue and profit down on lower fungicides volumes Industrial chemicals 7.6 6.9
Slide 16: Performance by Segment: Specialty Plastics
7 Performance by Segment: Specialty Plastics (billions of yen) FY2018 FY2019 Change FY2019 vs. FY2018 % Specialty Plastics Revenue Operating Profit Home products 20.5 21.3 4% Home products / Fiber products Fiber products 2.9 3.0 4% Revenue and profit grew on higher NEW Krewrap (plastic wrap) and Sea
Slide 17: Performance by Segment: Construction
8 Performance by Segment: Construction (billions of yen) FY2018 FY2019 Change FY2019 vs. FY2018 % Construction Revenue Operating Profit Construction 20.3 22.4 10% Construction Revenue and profit up on higher Elimination -7.9 -7.9 -- construction volumes in both private and (Intercompany sale) public
Slide 18: Performance by Segment: Other Operations
9 Performance by Segment: Other Operations (billions of yen) FY2018 FY2019 Change FY2019 vs. FY2018 % Other Operations Revenue Operating Profit Environmental engineering 12.0 12.8 7% Environmental Engineering Logistics 8.3 8.2 -2% Revenue and profit improved on higher 8% industrial waste treatment v
Slide 19: Other Income & Expenses
10 Other Income & Expenses FY2018 FY2019 Other income ¥0.6 billion Other income ¥13.4 billion Subsidy income: ¥0.3bn Gains on sales of noncurrent assets: ¥10.2bn *Government’s subsidies for post-quake restoration *Sales of the land used for Kureha HQ annex office, etc. initiatives, etc. Gains on dis
Slide 20: FY2019 Results vs. Guidance
11 FY2019 Results vs. Guidance (billions of yen) FY2019 Guidance AM SC SP CO OO Total Revenue 50.5 27.0 45.0 12.5 17.0 152.0 (Notes) Segment operating profit 6.0 2.7 6.1 0.4 1.8 17.0 Intersegment adjustment 0.0 Other income 10.0 - Other income includes gains on sales of noncurrent assets (¥9.2bn) Ot
Slide 21: FY2019 Results vs. Guidance
12 FY2019 Results vs. Guidance (billions of yen) FY2019 Results vs. Guidance (announced May 2019) Revenue Operating profit …FY2019 Guidance …FY2019 Guidance 50.5 45.0 43.5 …FY2019 Results 6.0 6.1 6.3 …FY2019 Results 41.8 27.0 24.3 3.7 17.0 18.3 2.7 2.7 14.5 2.1 12.5 1.8 1.1 0.4 Advanced Specialty Sp
Slide 22: Financial Position
13 Financial Position (billions of yen) Assets Liabilities and Equity Mar. 31 Mar. 31 Mar. 31 Mar. 31 Change Change 2019 2020 2019 2020 Cash and cash equivalents 6.0 7.3 1.3 Trade and other payables 24.0 19.4 -4.6 Trade and other receivables 30.7 28.3 -2.4 Interest-bearing debt 39.0 37.3 -1.7 Invent
Slide 23: Cash Flow
14 Cash Flow (billions of yen) FY2018 FY2019 Change Profit before income tax 17.4 17.9 0.5 Depreciation 10.3 12.1 1.8 Other -4.4 -14.9 -10.5 Cash flow from operating activities 23.4 15.2 -8.2 Cash flow from investing activities -8.4 5.5 13.8 Cash flow from financing activities -15.5 -19.4 -3.9 Effec
Slide 24: Key Indicators
15 Key Indicators (billions of yen) FY2018 FY2019 Change 1H 2H Full year 1H 2H Full year YOY Capital expenditure 5.8 7.4 13.2 7.4 7.5 14.9 13% Depreciation 5.0 5.3 10.3 6.0 6.1 12.1 17% R&D expenses 2.5 2.8 5.3 2.9 3.1 6.0 14% Interest-bearing debt 45.9 39.0 39.0 48.9 37.3 37.3 -4% (Currency exchang
Slide 25: Key Indicators
16 Key Indicators Per-share Profit, Dividend Payout Ratio, Total Return Ratio, ROE, ROA, D/E Ratio 70% 800 Yen/share 60% 600 50% 40% Dividend payout ratio 400 (Left scale) 30% Total return ratio 20% (Left scale) 200 10% Profit per share (Right scale) 0% 0 FY2015 FY2016 FY2017 FY2018 FY2019 10% 0.8 0
Slide 26: Returning to Shareholders
17 Returning to Shareholders Kureha’s basic policy for the distribution of earnings is to strengthen the company overall to realize longer- term growth, prepare for future business expansion, enhance retained earnings, and provide a stable and continued dividend. Recent trend of annual dividend pa
Slide 27: Consolidated Companies
18 Consolidated Companies (billions of yen) FY2018 FY2019 Change Revenue Total assets Revenue Total assets Revenue Total assets Kureha Corporation 83.0 198.2 76.3 192.3 -6.7 -5.8 Kureha Trading Group (2) 22.7 13.2 21.6 12.3 -1.0 -0.9 Kureha Corporation 32.5 -- 30.6 -- -1.9 -- Kureha Trading Group (2
Slide 28: Consolidated Companies
19 Consolidated Companies (billions of yen) FY2018 FY2019 Change Revenue Total assets Revenue Total assets Revenue Total assets Kureha Nishiki Group (4) 17.9 12.0 19.9 11.6 1.9 -0.4 Construc- Kureha Engineering 2.4 1.8 2.5 1.9 0.2 0.1 tion Consolidation adjustments -7.9 -- -7.9 -- -- -- Total 12.4 -
Slide 29: PGA Business Updates
20 PGA Business Updates 2016-2019 Revenue & Operating Profit FY2019 market review & our progress (billion yen) • Shale oil and gas production continued to grow with 5 0.5 approximately 600,000 frac plugs used in drilling 0.0 operations 4 Kureha Sales/ -0.5 Stockshapes • Kureha Energy Solutions (KES)
Slide 30: PVDF Business Updates
21 PVDF Business Updates Sales Maintained over 40% LiB binder market share with strong customer base in China and South Korea Expanded sales and increased product adoption by large LiB makers in China and South Korea, although revenue fell below target due to slower demand as China reduced EV pr
Slide 31: FY2019: Impact of COVID-19 Pandemic
22 FY2019: Impact of COVID-19 Pandemic Production Kureha Iwaki Factory: Reduced PVDF production due to longer lead time for raw materials exported from China in March Kureha Plastic Processing Factory: No impact Other domestic factories: No impact Overseas factories: China factories temporarily halt
Slide 32: FY2020 Outlook
23 FY2020 Outlook FY2020 financial guidance • Will not be announced today as we are unable to assess the impact of new coronavirus on our global business operations at this point • Will be announced promptly when we determine a reasonable forecast Dividend payment • Will be announced at the same tim
Slide 33: Disclaimer
24 Disclaimer • These materials are supplied to provide a deeper understanding of our company, and are not intended to as a solicitation for investment or other actions. • These materials have been prepared by our company based on the information available at this point in time. However, actual perf