Kureha Corporation · TSE:4023
Kureha — H1 FY2015 Earnings Presentation
24 slides from Kureha's earnings presentation, Nov 13, 2015
Slide 1: Fiscal 2015 Interim Results
Fiscal 2015 Interim Results (Period April 1 – September 30,2015) November 13, 2015
Slide 2: Contents
1 Contents 1. FY2015 Half-Year Results 2 • FY2015 1H Highlights 3 • Segment Performance 4-7 • Key Indicators 8 • Extraordinary Income/Losses 9 • Balance Sheets 10 • Cash Flow 11 2. FY2015 Full-Year Forecasts 12 • FY2015 Full-Year Outlook 13 • Segment Outlook 14-17 • Key Indicators 18 • Cash Flow 19
Slide 3: 1. FY2015 Half-Year Results
2 1. FY2015 Half-Year Results (April 1 – September 30, 2015)
Slide 4: FY2015 1H Highlights
3 FY2015 1H Highlights Sales contract 6%, Operating income down 13% YOY • Volume declines in pharmaceuticals, agrochemicals, packaging machinery and construction • Increased depreciation costs associated with PVDC and PVDF facilities • Continued PGA growth in shale oil/gas markets Unfavorable cu
Slide 5: Segment Performance: Advanced Materials
4 Segment Performance Advanced Materials In 100 million yen FY2015 1H FY2014 1H % Change Kureha Sales Carbon products 30 32 -8% Advanced plastics 115 96 20% Other 1 3 -65% Subsidiaries Sales Carbon products (China) 8 11 -25% Battery materials 33 31 8% Other 119 114 5% Consolidated adjustment -119 -1
Slide 6: Specialty Chemicals
5 Specialty Chemicals In 100 million yen FY2015 1H FY2014 1H % Change Kureha Sales Industrial chemicals 48 55 -11% Agrochemicals 36 52 -30% Pharmaceuticals 42 46 -8% Subsidiaries Sales 39 44 -11% Consolidated adjustment -15 -18 --- Kureha Group Sales Total 151 178 -15% Kureha Group Operating Income
Slide 7: Specialty Plastics
6 Specialty Plastics In 100 million yen FY2015 1H FY2014 1H % Change Kureha Sales Packaging materials 39 55 -30% Consumer products 91 91 0% Subsidiaries Sales Packaging materials (overseas) 62 61 3% Other 68 74 -9% Consolidated adjustment -40 -52 --- Kureha Group Sales Total 220 230 -4% Kureha Group
Slide 8: Construction and Other Operations
7 Construction In 100 million yen FY2015 1H FY2014 1H % Change Subsidiaries Sales Construction 98 120 -18% Consolidated adjustment -35 -47 --- Kureha Group Sales Total 63 74 -14% Kureha Group Operating Income Total 3 4 -14% Post-quake reconstruction projects increased, but private construction pro
Slide 9: Key Indicators
8 Key Indicators ( In 100 million yen) FY2015 1H FY2014 1H % Change Capital expenditure 53 92 -43% Depreciation 48 39 23% R&D expenses 23 23 -2% Interest-bearing debt 858 845 2% Net interest expense 1 0 --- ¥121.87/$1 ¥103.04/$1 Exchange rate --- ¥135.27/€1 ¥138.92/€1 Number of employees 4,140 4,159
Slide 10: Extraordinary Income/Losses
9 Extraordinary Income/Losses ( In 100 million yen) FY2015 1H FY2014 1H Change Gain on sales of investment securities 3.2 0.7 2.5 Extraordinary Compensation income 0.4 0.4 -0.1 income Gain on transfer of business -- -- -- Others 0.1 0.1 0.0 Total 3.6 1.2 2.4 Loss on sales and retirement of noncurren
Slide 11: Balance Sheets
10 Balance Sheets September 30 March 31 Change ( In 100 million yen) 2015 2015 Assets Cash and cash equivalents 56 78 -22 Accounts and notes receivable-trade 288 290 -2 Inventories 330 328 3 Other current assets 70 64 6 Property, plant and equipment 1,231 1,232 -1 Intangible assets 24 24 -0 Investme
Slide 12: Cash Flow
11 Cash Flow FY2015 1H FY2014 1H Pre-depreciation profit 99 99 Increase/decrease in assets and liabilities -14 -29 Cash flow from Payments of corporation tax -25 -25 operating activities Other-net -5 -4 Total 55 41 Cash flow from investing activities -56 -103 Cash flow from financing activities -21
Slide 13: 2. FY2015 Full-Year Forecasts
12 2. FY2015 Full-Year Forecasts (April 1, 2015 – March 31, 2016)
Slide 14: FY2015 Full-Year Outlook
13 FY2015 Full-Year Outlook In 100 million yen FY2016 FY2015 % Change Net Sales 1,550 1,502 3.2% Operating income 130 146 -10.7% Recurring income 125 154 -19.0% Net income 80 92 -13.0% ¥11 ¥12 Interim ¥5.5 Interim ¥5.5 Dividend per share (yen) Year-end ¥5.5 Year-end ¥5.5 Commemorative ¥1.0 Dividend
Slide 15: Segment Outlook: Advanced Materials
14 Segment Outlook Advanced Materials In 100 million yen FY2015e FY2014 % Change Kureha Sales Carbon products 60 60 0% Advanced plastics 266 202 32% Other 4 5 -25% Subsidiaries Sales Carbon products (China) 19 19 0% Battery materials 78 61 28% Other 288 241 19% Consolidated adjustment -280 -227 -- K
Slide 16: Segment Outlook: Specialty Chemicals
15 Specialty Chemicals In 100 million yen FY2015e FY2014 % Change Kureha Sales Industrial chemicals 98 106 -8% Agrochemicals 107 98 10% Pharmaceuticals 75 99 -24% Subsidiaries Sales 90 88 3% Consolidated adjustment -35 -35 -- Kureha Group Sales Total 335 355 -6% Kureha Group Operating Income Total 4
Slide 17: Segment Outlook: Specialty Plastics
16 Specialty Plastics In 100 million yen FY2015e FY2014 % Change Kureha Sales Packaging materials 92 118 -22% Consumer products 198 175 13% Subsidiaries Sales Packaging materials (overseas) 135 124 9% Other 150 148 1% Consolidated adjustment -105 -100 --- Kureha Group Sales Total 470 465 1% Kureha G
Slide 18: Segment Outlook: Construction and Other Operations
17 Construction In 100 million yen FY2015e FY2014 % Change Subsidiaries Sales Construction 210 257 -18% Consolidated adjustment -60 -89 --- Kureha Group Sales Total 150 167 -10% Kureha Group Operating Income Total 6 11 -45% Fewer construction projects, increased labor and materials costs Other Ope
Slide 19: Key Indicators
18 Key Indicators ( In 100 million yen) FY2015e FY2014 % Change Capital expenditure 160 176 -9% Depreciation 100 83 21% R&D expenses 57 50 15% Interest-bearing debt 897 866 4% Net interest expense -2 -0 --- (2nd half) ¥109.90/$1 Exchange rate ¥120/$1 --- ¥138.84/€1 ¥135/€1 Number of Employees 4,146
Slide 20: Cash Flow
19 Cash Flow FY2015e FY2014 Pre-depreciation profit 208 219 Increase/decrease in assets and liabilities -50 -63 Cash flow from Payments of corporation tax -28 -41 operating activities Other-net 13 11 Total 143 125 Cash flow from investing activities -154 -188 Cash flow from financing activities 10 5
Slide 21: 3. Consolidated Companies
20 3. Consolidated Companies
Slide 22: Sales and Assets
21 Sales and Assets FY2015 1H FY2014 1H Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Corporation 402 1,951 429 1,845 -27 106 Kureha Trading Group (2) 124 119 145 133 -21 -14 Kureha Corporation 146 -- 131 -- 15 -- Kureha Trading Group (2) 39 -- 52 -- -13 -- Kureh
Slide 23: Sales and Assets
22 Sales and Assets FY2015 1H FY2014 1H Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Nishiki Group (4) 80 97 94 107 -14 -10 Construc- Kureha Engineering Co. 18 28 26 29 -8 -1 tion Consolidation adjustments -35 -- -47 -- 12 -- Total 63 -- 74 -- -10 -- Kureha Ecol
Slide 24: Disclaimer
Disclaimer 1. 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 2. These materials were prepared by our company based on the information available at this point in time, however actual performance