Toagosei Co., Ltd. · TSE:4045
Toagosei — FY2017 Earnings Presentation
19 slides from Toagosei's earnings presentation, Feb 15, 2018
Slide 1: Financial Results for FY2017
Financial Results for FY2017 February 15, 2018 This document is a translation of the official Japanese version provided for information purpose only.
Slide 2: Overview of Results for FY2017
Overview of Results for FY2017 Scope of consolidation Number of consolidated subsidiaries: 20 (no change) Number of equity-method affiliates: 2 (no change from FY2016) FY2016 FY2017 Change (Millions of Net sales yen) 135,382 144,708 9,325 6.9% (Millions of Operating income yen) 16,147 17,453 1,306 8
Slide 3: Summary of Financial Results for FY2017
Summary of Financial Results for FY2017 Favorable recovery of both Japanese and World economy Steady demand in overall Chemical Products Increased demand in Electronics and automobile related products 1. Accomplished increased income in all segments. Commodity Chemicals and Performance Chemicals con
Slide 4: Consolidated Results (by Segment)
Consolidated Results (by Segment) Net sales (by consolidated segment) (Millions of yen) Changes in net sales FY2016 FY2017 Volume Unit price Change Commodity Chemicals 60,707 66,630 3,145 2,775 5,922 Polymer & Oligomer 26,715 28,096 1,548 -167 1,380 Adhesive Material 11,648 12,010 333 29 362 Perform
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) FY2016 FY2017 Change FY2016 FY2017 Change Interest and dividend income 820 818 -1 Subsidy income 10 37 26 Equity in earnings of affiliates 337 33
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet (Millions of yen) [Balance Sheet] ①Part of internal reserve is held as Dec. 31, Dec. 31, securities. Change 2016 2017 ②Market value of investment Cash and deposits 28,966 29,636 669 securities increased because of Notes and accounts recovery of the stock market receivable
Slide 7: Overview of Consolidated Subsidiaries (Results for FY2017)
Overview of Consolidated Subsidiaries (Results for FY2017) (Millions of yen) Ownership Net sales Operating income (loss) Net income (loss) Company name Segment (%) FY2016 FY2017 FY2016 FY2017 FY2016 FY2017 Commodity 1 Toa Techno-Gas Chemicals 100 4,557 4,672 597 542 426 386 2 (Oita Chemical) ↓ 91.15
Slide 8: Result forecast for FY2018
Result forecast for FY2018 Both Japanese and World economy continues to recover, and strong demand is expected in Chemicals. However, prices of resources including crude oil will definitely rise, thus price adjustment is inevitable. Burden of depreciation and amortization of capital investment is ex
Slide 9: Consolidated Results Forecast for FY2018
Consolidated Results Forecast for FY2018 (Millions of yen) FY2018 1H FY2018 2H FY2018 forecast Change FY2017 (A) (forecast) (forecast) (B) (B-A) Net sales 144,708 72,000 77,000 149,000 4,292 Operating income 17,453 8,300 9,200 17,500 47 Operating income ratio 12.1% 11.5% 11.9% 11.7% -0.4% Other inco
Slide 10: Consolidated Results Forecast for FY2018 (by Segment)
Consolidated Results Forecast for FY2018 (by Segment) Net sales (Millions of yen) FY2017 FY2018 Change Factors for change results forecast Commodity Chemicals 66,630 66,700 70 [Increase] Caustic soda [Decrease] Industrial gas Polymer & [Increase] Acrylic polymer, polymer flocculants, UV-curable Olig
Slide 11: Historical Consolidated Results
Historical Consolidated Results (Millions of yen) (Yen) 30,000 120 104.8 98.1 25,000 100 98.8 20,000 17,500 (11.7%) 80 16,147 (11.9%) 17,453 (12.1%) 63.9 50.9 15,000 13,801 12,911 60 12,015 (8.1%) 12,347 (8.8%) 13,000 10,000 40 8,414 6,696 5,000 20 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 (forecast) O
Slide 12: Reference for Consolidated Performance
Reference for Consolidated Performance (Billions of yen) FY2018 FY2014 FY2015 FY2016 FY2017 forecast Depreciation and amortization 8.6 8.8 7.9 7.9 8.7 Capital investment 7.8 5.8 5.1 10.0 11.0 Research and development expenses 3.9 3.7 3.6 3.7 3.9 Overseas sales 24.8 23.1 21.6 24.2 23.0 Interest-beari
Slide 13: Historical Reference for Consolidated Performance
Historical Reference for Consolidated Performance (Millions of yen) (Millions of yen) 200,000 192,333 50,000 76.5% 76.0% 182,624 75.9% 77.2% 167,990 76.3% 158,173 160,000 152,711 40,000 120,000 30,000 80,000 20,000 13,234 12,693 12,307 12,150 11,992 40,000 10,000 0 0 FY2014 FY2015 FY2016 FY2017 FY20
Slide 14: Overview of Consolidated Subsidiaries (FY2018 Forecast)
Overview of Consolidated Subsidiaries Reference (FY2018 Forecast) (Millions of yen) Net sales Operating income (loss) Net income (loss) Ownership Company name Segment (%) FY2018 FY2018 FY2018 FY2017 FY2017 FY2017 forecast forecast forecast Commodity 1 Toa Techno-Gas Chemicals 100 4,672 4,469 542 369
Slide 15: Medium-Term Management Plan: Operating Income Trend
Medium-Term Management Plan “Trajectory Toward Growth 2019” Operating Income Trend (Billions of yen) 汎用製品 Commodity 高付加価値製品 High-value-added products products 200 20 17.5 18.0 17.5 16.1 150 15 14.5 55 5.5 68 6.8 67 6.7 12.0 12.3 59 5.9 65 6.5 31 3.1 100 10 36 3.6 125 12.5 505 102 107 10.7 108 10.8 8
Slide 16: Strengthened businesses supporting the management base
Medium-Term Management Plan “Trajectory Toward Growth 2019” 2017 Trajectory Strengthened businesses supporting the management base Starting anew caustic potash plant in energy-saving electrolytic cells ・Significantly upgraded response capabilities towards quality needs of customers, such as high-pur
Slide 17: Expanding businesses with core roles in the growth strategy
Medium-Term Management Plan “Trajectory Toward Growth 2019” 2017 Trajectory Expanding businesses with core roles in the growth strategy Projects in Toagosei (Thailand) Acrylic polymer plant under construction • Products: Materials for cosmetics, etc. • Start of operation: June 2018 Example uses of a
Slide 18: Initiatives for 2018 and Beyond
Medium-Term Management Plan “Trajectory Toward Growth 2019” Initiatives for 2018 and Beyond Sales expansion of Automobile-related line-ups We will speedily develop products that meet user needs of lightweight vehicles and electrification, such as resin sheet alternative to glass, adhesives for diffe
Slide 19: Initiatives for 2018 and Beyond: Office, Sales and HR
Medium-Term Management Plan “Trajectory Toward Growth 2019” Initiatives for 2018 and Beyond Office and logistics department ・Integrate office processing work in the Toagosei group to a shared services company, Toa Business Associe Co., Ltd., to make indirect department more efficient and streamlined