Kureha Corporation · TSE:4023

Kureha — H1 FY2013 Earnings Presentation

32 slides from Kureha's earnings presentation, Nov 18, 2013

  1. Slide 1: Kureha Corporation Reports Interim Results

    Kureha Corporation Reports Interim Results Period April- September 2013 Tokyo, Japan, November 2013 – Kureha Corporation (“Kureha”), a leading global supplier of specialty chemicals and plastics, has reported earnings for the half-year period ended September 30, 2013. On a consolidated basis, operat

  2. Slide 2: Update on the Grow Globally II medium-term business plan

    Update on the Grow Globally II medium-term business plan Kureha remains committed to its management direction, and as such the central tenets of the Grow Globally II medium-term business plan remain unchanged. Kureha will continue to focus on growth areas, particularly solar power equipment, lithium

  3. Slide 3: Performance by Division

    Performance by Division Advanced Materials Division Major product areas: advanced plastics (PPS, PVDF, PGA), carbon materials For the half-year period, the Advanced Materials Division’s sales increased by 14% YoY from ¥14.0 billion to ¥16.0 billion. The division recorded an operating loss of ¥1.4 bi

  4. Slide 4: Pharmaceuticals demand remains strong

    Pharmaceuticals demand remains strong Kremezin, a therapeutic agent for chronic kidney disease, recorded increased volume sales. However, sales fell 7% from ¥5.4 billion to ¥5.0 billion, largely due to the absence of settlement funds received following a patent infringement lawsuit, which had contri

  5. Slide 5: Construction / Other Operations

    Construction / Other Operations Major product areas – construction, environmental engineering, logistics, trading related businesses Profitability of construction businesses further declines Construction sales rose slightly on the back of an increase in public reconstruction projects connected to th

  6. Slide 6: Outlook for the full year

    Outlook for the full year (¥ million, except where stated) March 2014 March 2013 Change (%) (Forecasts) Sales 143,000 130,550 9.5 Operating income 9,500 8,458 12.3 Recurring income 9,500 6,570 44.6 Net income 5,800 3,212 80.5 Earnings per share (EPS) (¥) 33.76 18.71 80.4 (¥ million, except where sta

  7. Slide 7: Condensed interim balance sheets

    Condensed interim balance sheets As of 30 September 2013 and 2012 ¥ million Sept. 2013 Sept. 2012 Assets Current assets 67,789 67,714 Cash and cash equivalents 6,824 9,863 Fixed assets 145,013 120,715 Property, plant and equipment 105,270 90,019 Intangible assets 1,606 1,248 Investments and other as

  8. Slide 8: Fiscal 2013 Interim Results

    Fiscal 2013 Interim Results (Period April – September 2013) November 18, 2013

  9. Slide 9: Contents

    Contents 1. FY2013 Half-Year Results 2 • Financial Highlights 3 • Consolidated Net Sales and Operating Income by Segment 4~7 • Analysis of Recurring Income 8 • Breakdown of Extraordinary Income/Losses 9 • Key Indicators 10 • Balance Sheets 11 • Cash Flow 12 2. FY2013 Full Year Forecasts 13 • Estimat

  10. Slide 10: 1. FY2013 Half-Year Results

    2 1. FY2013 Half-Year Results (April 1, 2013 – September 30, 2013)

  11. Slide 11: Financial Highlights

    3 Financial Highlights (Comparison with same period in 2012)  Consolidated net sales +6.3%, operating income +1.5% • Strong growth in high added value products including advanced plastics, pharmaceuticals, agrochemicals and household products  Recurring income up 41.6% reflecting increased foreign

  12. Slide 12: Consolidated Net Sales and Operating Income by Segment

    Consolidated Net Sales and 4 Operating Income by Segment Advanced Materials FY2012 FY2013 % Increase/ ( Unit: 100 million yen) Half Year Half Year Decrease Carbon products 23 25 7% Kureha Advanced plastics 70 81 16% Others 2 1 - 72% Consolidated Total 95 107 12% net sales Consolidated subsidiaries 1

  13. Slide 13: Consolidated Net Sales and Operating Income by Segment

    Consolidated Net Sales and 5 Operating Income by Segment Specialty Chemicals FY2012 FY2013 % Increase/ ( Unit: 100 million yen) Half Year Half Year Decrease Industrial chemicals 47 49 5% Kureha Agrochemicals 41 48 18% Pharmaceuticals 54 50 - 7% Consolidated Total 141 146 4% net sales Consolidated su

  14. Slide 14: Consolidated Net Sales and Operating Income by Segment

    Consolidated Net Sales and 6 Operating Income by Segment Specialty Plastics FY2012 FY2013 % Increase/ ( Unit: 100 million yen) Half Year Half Year Decrease Food packaging 39 39 2% Kureha Household products 89 92 3% Others 14 4 - 71% Consolidated Total 142 135 - 5% net sales Consolidated subsidiaries

  15. Slide 15: Consolidated Net Sales and Operating Income by Segment

    Consolidated Net Sales and 7 Operating Income by Segment FY2012 FY2013 % Increase/ Construction ( Unit: 100 million yen) Half Year Half Year Decrease Construction business 107 97 - 9% Consolidated Consolidated adjustments - 47 - 32 --- net sales Total 60 65 8% Consolidated operating income 2 1 - 38%

  16. Slide 16: Analysis of Recurring Income

    8 Analysis of Recurring Income Consolidated Recurring Income FY2012 FY2013 ( Unit: 100 million yen) Half Year Half Year Change Kureha Corporation 49.4 49.2 - 0.2 Consolidated subsidiaries - 3.6 9.0 12.6 Equity-method affiliates 1.3 1.9 0.6 Consolidation adjustments - 10.0 - 7.5 2.5 Consolidated recu

  17. Slide 17: Breakdown of Extraordinary Income/Losses

    Breakdown of Extraordinary 9 Income/Losses FY2012 Half Year FY2013 Half Year Change Non- Non- Non- ( Unit: 100 million yen) Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Compensation for damage --- --- 1.6 1.6 1.6 1.6 Compensation for damage 1.0 --- 0.7 --- - 0.3 ---

  18. Slide 18: Key Indicators

    10 Key Indicators FY2012 Half Year FY2013 Half Year % Increase/Decrease Non- Non- Non- Consolidated Ratio Consolidated Ratio Consolidated ( Unit: 100 million yen) Consolidated Consolidated Consolidated Capital expenditure 75 50 1.5 65 49 1.3 - 13% - 1% Depreciation 41 32 1.3 45 30 1.5 11% - 7% R&D e

  19. Slide 19: Balance Sheets

    11 Balance Sheets As of March 30, 2013 As of September 30, 2013 Increase/Decrease ( Unit: 100 million yen) Non- Non- Non- Assets Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Cash and cash equivalents 100 49 68 31 - 31 - 18 Accounts and notes receivable-trade 275 162

  20. Slide 20: Cash Flow

    12 Cash Flow FY2012 Half Year FY2013 Half Year Increase/Decrease ( Unit: 100 million yen) Non- Non- Non- Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Pre-depreciation 79 79 96 76 17 -2 profit Increase/decrease in -8 7 Cash flow from - 24 - 31 - 32 - 24 assets and lia

  21. Slide 21: 2. FY2013 Full Year Forecasts

    13 2. FY2013 Full Year Forecasts (April 1, 2013 – March 30, 2014)

  22. Slide 22: Estimated Figures

    14 Estimated Figures (Comparison with FY2012)  Solid sales growth expected across all segments  Stronger operating earnings supported by Specialty Chemicals, Specialty Plastics and Other Operations  Non-operational expenses lessening and favorable foreign exchange gains driving a higher recurring

  23. Slide 23: Consolidated Net Sales and Operating Income by Segment

    Consolidated Net Sales and 15 Operating Income by Segment Advanced Materials % Increase/ ( Unit: 100 million yen) FY2012 FY2013 Decrease Carbon products 44 52 19% Kureha Advanced plastics 137 164 20% Others 4 4 - 11% Consolidated Total 185 220 19% net sales Consolidated subsidiaries 221 270 22% Cons

  24. Slide 24: Consolidated Net Sales and Operating Income by Segment

    Consolidated Net Sales and 16 Operating Income by Segment Specialty Chemicals % Increase/ ( Unit: 100 million yen) FY2012 FY2013 Decrease Industrial chemicals 94 98 4% Kureha Agrochemicals 83 105 27% Pharmaceuticals 98 92 - 6% Consolidated Total 275 295 7% net sales Consolidated subsidiaries 83 86 4

  25. Slide 25: Consolidated Net Sales and Operating Income by Segment

    Consolidated Net Sales and 17 Operating Income by Segment Specialty Plastics % Increase/ ( Unit: 100 million yen) FY2012 FY2013 Decrease Food packaging 79 82 4% Kureha Household products 178 180 1% Others 21 23 11% Consolidated Total 278 285 3% net sales Consolidated subsidiaries 215 240 12% Consoli

  26. Slide 26: Consolidated Net Sales and Operating Income by Segment

    Consolidated Net Sales and 18 Operating Income by Segment % Increase/ Construction ( Unit: 100 million yen) FY2012 FY2013 Decrease Construction business 247 230 - 7% Consolidated Consolidated adjustments - 98 - 70 --- net sales Total 150 160 7% Consolidated operating income 10 5 - 52% Other Operatio

  27. Slide 27: Key Indicators

    19 Key Indicators FY2012 FY2013 % Increase/Decrease Non- Non- Non- Consolidated Ratio Consolidated Ratio Consolidated ( Unit: 100 million yen) Consolidated Consolidated Consolidated Capital expenditure 200 116 1.7 210 160 1.3 5% 38% Depreciation 89 62 1.4 91 61 1.5 2% - 2% R&D expenses 44 41 1.1 50

  28. Slide 28: Cash Flow

    20 Cash Flow FY2012 FY2013 Increase/Decrease ( Unit: 100 million yen) Non- Non- Non- Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Pre-depreciation 143 122 171 121 28 -1 profit Increase/decrease in Cash flow from - 25 - 32 - 47 - 34 - 22 -2 assets and liabilities oper

  29. Slide 29: 3. Consolidated Companies

    21 3. Consolidated Companies

  30. Slide 30: Consolidated Companies

    22 Consolidated Companies FY2012 Half Year FY2013 Half Year Increase/Decrease ( Unit: 100 million yen) Net sales Total assets Net sales Total assets Net sales Total assets Kureha Corporation 378 1,547 388 1,684 10 137 Kureha Trading Co. (1) 138 128 141 132 4 4 Kureha Corporation 95 --- 107 --- 12 --

  31. Slide 31: Consolidated Companies

    23 Consolidated Companies FY2012 Half Year FY2013 Half Year Increase/Decrease ( Unit: 100 million yen) Net sales Total assets Net sales Total assets Net sales Total assets Kureha Nishiki Co. (3) 78 83 71 86 -7 4 Construct- Kureha Engineering Co. 29 39 26 35 -3 -4 ion Consolidation adjustments - 47 -

  32. Slide 32: 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

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