Unicharm Corporation · TSE:8113
Unicharm — FY2015 Earnings Presentation
23 slides from Unicharm's earnings presentation, Feb 12, 2016
Slide 1: Unicharm Presentation Materials for Investor Meeting, FY Ended Dec. 31, 2015
Fiscal Year Ended December 31, 2015 Unicharm Presentation Materials for Investor Meeting February 12, 2016 Takahisa Takahara President and CEO Unicharm Corporation Projections stated herein include those based on the Company’s assumptions, forecasts and plans as of February 12, 2016. Therefore, actu
Slide 2: Making Full Use of our Strengths as No.1 in Asia, to Achieve 10% World Share
Making Full Use of our Strengths as No.1 in Asia, to Achieve 10% World Share As of Sept. 2015 World No.3 10.2% Asia No.1 24.8% Baby Care Feminine Care Health Care No.3 No.2 No.3 World 10.0% 9.9% 11.2% No.1 No.1 No.1 Asia 24.1% 21.8% 35.8% Acc. to survey by UniCharm Copyright (c) Unicharm Corporation
Slide 3: Awarded the Best Mother Award three years consecutively
Awarded the Best Mother Award three years consecutively Over 10,000 free votes from child-raising mothers Many mothers praised the products on their “ease of use,” “simplicity,” and “design.” 2013 (5th Award) Prize won in baby wipes category Moony Baby Wipes - Flushable type 2014 (6th Award) Prize w
Slide 4: Fiscal Year Ended Dec. 31, 2015 Financial Results Summary
Fiscal Year Ended Dec. 31, 2015 Financial Results Summary Actual 10.9% net sales increase, 4.9% operating income increase Net sales increase for 14 consecutive fiscal periods, operating income increase for 9 consecutive periods >> >> Record high Reason why official figures were not met Delay
Slide 5: Consolidated account highlights
14 consecutive periods for net sales increase, 9 consecutive periods for operating income increase Achievement of record-high actual results Consolidated account highlights (Millions of yen) (Ref.) FY Ended FY Ended Difference Dec. 2015 Fiscal Achievement Dec. 31, 2014 Difference Period Rate Dec.
Slide 6: Geographical Segment Information
In Japan, steady growth due to expanded sale of high value-added products In Asia, active implementation of investment to expand market Geographical Segment Information (Millions of yen) FY Ended FY Ended Dec. 31, 2014 Net sales Operating income Dec. 31, 2015 (Adjusted basis) Operating income Oper
Slide 7: Business Segment Information
Profits have improved for Pet Care in North America. However, in Japan, we were unable to absorb purchasing cost increases due to depreciation of the yen Business Segment Information (Millions of yen) FY Ended FY Ended Dec. 31, 2014 Net sales Operating income Dec. 31, 2015 (Adjusted basis) Operati
Slide 8: Impact of exchange rate fluctuations on net sales and operating income
Impact of +30.1 billion yen in net sales, -1.5 billion yen in operating income year on year (Operating income comprised of +4.3 billion yen in settlement conversion, -5.8 billion yen in purchasing price increase) Effects on sales and operating income due to exchange rate fluctuations (after settle
Slide 9: Fiscal Year Ending December 31, 2016 Plan Summary
Fiscal Year Ending December 31, 2016 Plan Summary Key Points for Sales/Operating Income Japan Based on Personal Care business, maintaining stable growth through continuous new price proposals Inbound demand expected to level off Developing countries In India, promote sales increase through a
Slide 10: Consolidated earnings forecast
For fiscal year ending December 31, 2016, double-digit income/profit increase excluding impact of exchange rate Aim to set new record high Consolidated earnings forecast (Millions of yen) FY Ended FY Ended Difference Dec. 31, 2016 Dec. 31, 2015 Difference Remarks (%) Exc. exchange effects, Net sal
Slide 11: Consolidated sales fluctuation
Plan to reach record-high sales even if exchange rate has a negative effect Plan for local currency-based double-digit growth in major countries Consolidate sales fluctuation (100 millions of yen) +80 -50 +33 7,770 +70 +250 7,387 About 10% growth exc. exchange rate FY Ended Japan China India Asia
Slide 12: Consolidated operating income fluctuation
Plan to reach record-high operating income through improvement of profit rates based on the effects of increased income through effective marketing investments Consolidated operating income fluctuation (100 millions of yen) +172 870 799 -36 -40 -44 +37 -45 +27 Approx. 12% growth excl. exchange rat
Slide 13: Plan for shareholder return from free cash flow while conducting growth investments
Plan for shareholder return from free cash flow while conducting growth investments for the sustainable improvement of corporate value Consolidated cash flow plan Dec. ’16 Fiscal Period Operating income after taxes Profitability 62 bn. yen Depreciation expenses 30 bn. yen Working capital increase
Slide 14: Shareholder Return Policy
Continue to pay dividends that are consistent with earnings and increase dividends in fiscal year ending Dec. 2016 through the share buy-back, and forecast a 50% total shareholder return Shareholder Return Policy (Millions of yen) Dividends Purchase of own shares Total return ratio 30,000 55.6% 60
Slide 15: Steady and continual dividend payments
Steady and continual dividend payments On track for 15 consecutive periods of increased dividends! Change in dividends (Yen) 18.0 16 16.0 14.8 * 14.0 12.7 12.7 12.0 11.3 10.7 9.3 10.0 7.7 8.0 6.0 6.0 4.9 5.1 4.0 3.0 3.3 3.7 2.7 2.0 0.0 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '1
Slide 16: Reference materials
© unicharm Reference materials
Slide 17: [Ref.] FY 2014 irregular settlements
[Ref.] FY 2014 (previous fiscal year) irregular settlements (1) Fiscal year ending in Dec. 2015 and comparison (listed as “Based on financial reporting) FY 2014 - ◆Former March settlement corporation: Apr. -Dec. 2014. ◆Dec. settlement corporation: Jan.-Dec. 2014 FY 2015 FY 2014 Jan.-Mar. Apr.-Jun. J
Slide 18: [Ref.] Segment information (based on financial reporting)
[Ref.] Segment information (based on financial reporting) Segment information by location (based on financial reporting) (Millions of yen) Elimination/ Japan Asia Other Total company-wide Consolidated FY Ended Dec. 31, 2014 Net sales 198,745 272,904 82,011 553,661 － 553,661 Operating incom 27,151
Slide 19: Japan / overseas sales (based on financial reporting)
[Ref.] Overseas sales composition ratio at record-high of 61.4% (Previous consolidated accounting year is irregular settlement - 60.5% after adjustment) Japan / overseas sales (based on financial reporting) 1000 (Billions of yen) 64.4% 70% 900 61.4% 57.7% 800 60% 52.6% 700 49.3% 46.9% 48.0% 50% 42
Slide 20: [Ref.] In Asia, marketing investments made preemptively and actively
[Ref.] In Asia, marketing investments made preemptively and actively Consolidated operating income margin: 10.8% Operating profit ratio by location (based on financial reporting) 20.0% 日本 Japan アジア Asia その他 Other 連結 Consolidated 15.5% 15.5% 15.1% 14.0% 15.0% 13.6% 13.8% 13.7% 13.3% 12.4% 12.8% 13.
Slide 21: [Ref.] Foreign exchange rate sensitivity to 1% depreciation of the yen
[Ref.] Foreign exchange rate sensitivity to 1% depreciation of the yen vis-à-vis local currencies increases net sales and operating income approx. ¥3 billion and ¥300 million, respectively Impact of a 1% change (depreciation of yen) Assumed rate for FY (Millions of yen) Currency ending Dec 31, 2016
Slide 22: [Ref.] Year on year impact from exchange rate due to conversion
[Ref.] Year on year impact from exchange rate due to conversion: Sales, approx. -38 billion yen, operating income approx. -2.4 billion yen Assumed rate for FY ending Dec 31, 2016 Assumed rate for FY Currency ending Dec 31, 2015 Dec ’15 Period Rate Rate Change Taiwan (TWD) 3.55 3.82 -7.1% Thailand
Slide 23: Thank you
Thank you Unicharm constantly provides the world’s No.1 and unprecedented products and services to everybody around the globe, and delivers comfort, inspiration and satisfaction. Copyright (c) Unicharm Corporation. All rights reserved. 23