Kurita Water Industries Ltd. · TSE:6370

Kurita Water Industries — FY2016 Earnings Presentation

31 slides from Kurita Water Industries's earnings presentation, May 2, 2017

  1. Slide 1: Results Presentation for the Fiscal Year Ended March 31, 2017

    Kurita Water Industries Ltd. Results Presentation for the Fiscal Year Ended March 31, 2017 (Securities code: 6370) May 2, 2017

  2. Slide 2: Table of Contents

    Table of Contents I Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 II Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 III Direction of Management Reference Material

  3. Slide 3: I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

    I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 1. Financial Highlights 2. Orders, Sales, Operating Income, and Operating Income Margin 3. Water Treatment Chemicals 4. Water Treatment Facilities (for the electronics industry) 5. Water Treatment Facilities (for general indu

  4. Slide 4: Financial Highlights

    I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 (Billions of Yen) Fiscal Year Fiscal Year Year-on-Year Revised Initial to March to March Change Projections Projections 2016 2017 Orders 221.3 218.7 -1.1% 218.0 223.0 Net Sales 214.4 214.2 -0.1% 216.0 222.0 Operating Income 1

  5. Slide 5: Orders, Sales, Operating Income, and Operating Income Margin

    I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 Water treatment chemicals Water treatment facilities Total * denotes revised projections Orders Sales (Billions of Yen) (Billions of Yen) 240 221.3 218.7 218.0 240 214.4 214.2 216.0 83.4 82.1 82.7 83.7 81.9 82.7 120 120 137.8

  6. Slide 6: Water Treatment Chemicals

    I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 (Billions of Yen) 90 Orders / Sales  Orders and sales in yen terms at overseas subsidiaries were adversely affected and declined with the stronger yen. 45 83.4 82.1 82.7  Domestic sales rose 2.1% year on year.  Overseas sa

  7. Slide 7: Water Treatment Facilities (for the electronics industry)

    I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 (Billions of Yen) 80 Orders  Orders for LCDs and semiconductors in China and Taiwan declined. 40 79.1 72.5 73.1  Orders for hardware in Japan increased thanks to large contracts for electronics components.  Orders in the u

  8. Slide 8: Water Treatment Facilities (for general industries)

    I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 (Billions of Yen) 70 Orders  Orders for large projects were received in water treatment facilities for thermal power plants and in soil remediation. 35 58.8 64.2 62.2  Orders for maintenance services increased in response t

  9. Slide 9: Financial Condition

    I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 Assets Liabilities and Net Assets (Billions of Yen) (Billions of Yen) 298.1 299.2 298.1 299.2 Cash, deposits 65.9 73.4 and marketable 69.1 70.5 Liabilities (+7.4) securities (+1.3) 84.6 82.6 Other current assets (-2.0) 78.4 7

  10. Slide 10: II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 1. External Environment 2. Overview 3. Orders, Sales, Operating Income, and Operating Income Margin 4. Water Treatment Chemicals 5. Water Treatment Facilities (for the electronics industry) 6. Water Treatment Facilities (for ge

  11. Slide 11: External Environment

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 1. External Environment Water Treatment Chemicals  Production in Japan is expected to be steady.  Economies in Europe, the United States, and Asia are expected to be steady, but there is downside risk associated with policies

  12. Slide 12: Overview

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 (Billions of Yen) Fiscal Year to Fiscal Year to Year-on-Year CK-17 Initial March 2017 March 2018 Change Projection Actual Projection Orders 218.7 221.0 +1.0% 240.0 Net Sales 214.2 223.0 +4.1% 235.0 Operating Income 19.5 18.5 -4

  13. Slide 13: Orders, Sales, Operating Income, and Operating Income Margin

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 Water treatment chemicals Water treatment facilities Total Orders Sales (Billions of Yen) (Billions of Yen) 240 218.7 221.0 240 214.2 223.0 82.1 89.5 81.9 89.4 120 120 136.6 131.5 132.3 133.6 0 0 03/2017 03/2018 03/2017 03/2018

  14. Slide 14: Water Treatment Chemicals

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 (Billions of Yen) 90 Orders / Sales  Orders and sales will rise, reflecting the consolidation of Fremont Industries. 45 82.1 89.5  Domestic sales are expected to rise 2.4%.  Overseas sales are expected to increase around 17%

  15. Slide 15: Water Treatment Facilities (for the electronics industry)

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 (Billions of Yen) 80 Orders  Orders for hardware in Japan and the ultrapure water supply business are expected to decline. 40 72.5 69.0  In maintenance services in Japan, capacity utilization at customers is expected to remai

  16. Slide 16: Water Treatment Facilities (for general industries)

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 (Billions of Yen) 70 Orders  Orders in electric power industries are expected to be less than in the previous fiscal year, when large-scale contracts were won. 35 64.2 62.5  With regard to orders for hardware and maintenance

  17. Slide 17: Sales Plan for the Ultrapure Water Supply Business

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 7. Sales Plan for the Ultrapure Water Supply Business (Billions of Yen) 40 +3.5 -3.3 -3.4 Expiration of +1.5 -2.4 32.0 New construction, contracts, -2.0 addition etc. Revision to contracts 28.8 New construction, Expiration of c

  18. Slide 18: Major Contracts in the Ultrapure Water Supply Business

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 8. Major Contracts in the Ultrapure Water Supply Business Original contract Renewal or extension (Domestic) (Domestic) (Domestic) (Overseas) (Domestic) (Domestic) (Domestic) (Domestic) (Domestic) (Domestic) (Domestic) (Domestic

  19. Slide 19: Service Business Revenue

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 Service Business Revenue Water treatment chemicals in the Water Treatment Facilities Segment Water treatment facilities (services) Water treatment facilities (hardware) (Billions of Yen) 98.9 97.8 96.9 100 94.9 (Billions of Yen

  20. Slide 20: Overseas Sales by Region and Business Segment

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 Overseas Sales by Region Overseas Sales by Business Segment Asia N. America EMEA (formerly Europe) Other Water treatment chemicals Water treatment facilities (Billions of Yen) (Billions of Yen) 71.4 71.4 72 72 64.2 2.8 64.2 63.

  21. Slide 21: Capital Expenditures, Depreciation, and R&D Expenses

    II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018 Capital Expenditures and Depreciation R&D Expenses Capital expenditures Capital expenditures Depreciation (ultrapure water (excl. ultrapure water (Property, plant R&D expenses Percentage of net sales supply business) supply bus

  22. Slide 22: III. Management Initiatives

    III. Management Initiatives 1. Policy for the Final Year of Competitive Kurita 2017 (CK-17) Plan 2. Acceleration of Business Expansion Overseas 3. Acquisition of Leading-Edge Technologies and New Development 4. Promotion of Services Business 5. Improvement of Capital Efficiency 6. Acquisition of Own

  23. Slide 23: Policy for the Final Year of Competitive Kurita 2017 (CK-17) Plan

    III. Management Initiatives 1. Policy for the Final Year of Competitive Kurita 2017 (CK-17) Plan Basic policy Improve customer intimacy by providing the best customer solutions Enhance Reconfigure Invest in focused competitive business growth areas and advantage and processes with reorganize reduce

  24. Slide 24: Acceleration of Business Expansion Overseas (1)

    III. Management Initiatives 2. Acceleration of Business Expansion Overseas (1) Establish a business base in North America through M&A Kurita Europe GmbH Fremont Industries, LLC Kurita Turkey Kimya A.S. Establish Kurita Developing service business Middle East FZE models, including the ultrapure water

  25. Slide 25: Acceleration of Business Expansion Overseas (2)

    III. Management Initiatives 2. Acceleration of Business Expansion Overseas (2) Acquisition targets West Coast and Northeast Midwest States  Indigenous sales network Mountain States States  Unique technologies Southwest and Texas Southeast States Establish full geographical coverage across the U.S.

  26. Slide 26: Acquisition of Leading-Edge Technologies and New Development

    III. Management Initiatives 3. Acquisition of Leading-Edge Technologies and New Development Investment in APANA Inc. Commercial facility Sensor Sewage water Convoluted plumbing system and highly scattered water outlet locations Technological advantage Customer benefits realized Rationalized water us

  27. Slide 27: Promotion of Services Business

    III. Management Initiatives 4. Promotion of Services Business Expansion of service type business models Standardized wastewater reclamation system The ultrapure water supply business Pure water supply service 22

  28. Slide 28: Improvement of Capital Efficiency

    III. Management Initiatives 5. Improvement of Capital Efficiency Uses of Cash (Plan): During the tenure of CK-17  Strive to continue raising dividends, Dividends aiming for a payout ratio of 30-50% over 5 years. Share buybacks  Discuss/execute acquisition of own shares using surplus funds. Operati

  29. Slide 29: Acquisition of Own Shares and Retirement of Treasury Stock

    III. Management Initiatives 6. Acquisition of Own Shares and Retirement of Treasury Stock Planned acquisition Number of shares to 4 million shares (maximum) (Ratio to the number of shares outstanding (excluding treasury be acquired stock): 3.45%) Total value 10 billion yen (maximum) Acquisition peri

  30. Slide 30: Reference Material

    Reference Material (Billions of yen) +1.3 -0.1 -1.5 Impact of decreased 19.8 Decrease in revenue Effect of change in 19.5 SG&A expenses cost of sales ratio 03/2016 03/2017 Note: The effect of change in the cost of sales ratio is calculated using the gross profit margin. 25

  31. Slide 31: Contact and Forward-looking Statements

    ■URL■ http://ir.kurita.co.jp/en/ ■ M AI L ■ ir@kurita.co.jp Forward-looking Statements This presentation contains forward-looking statements, business plan projections, and judgments based on information available to management at the time of writing. Due to the existence of a variety of risk factor

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