Slide 1: Kureha Corporation Reports Fiscal 2014 Results
Kureha Corporation Reports Fiscal 2014 Results Tokyo, Japan – May 2014 – Kureha Corporation (“Kureha”), a leading global supplier of specialty chemicals and plastics, has reported continued increases in earnings for the fiscal year ended March 31, 2015 (FY2014). On a consolidated basis, sales increa
Slide 2: Performance by Division
Performance by Division Consolidated Performance by Division (¥ million, except where stated) Division March 2014 March 2015 March 2016 (Forecast) Advanced materials Sales 32,815 36,187 43,500 Operating income/loss (2,625) 438 2100 Specialty chemicals Sales 36,615 35,535 33,500 Operating income/loss
Slide 3: Advanced Materials outlook and Specialty Chemicals Division
anode materials used in lithium-ion batteries, the operating loss for this business remained at the same level as in the previous year. Outlook: FY2015 division sales are forecast to increase by 20% to ¥43.5 billion, with operating income making a drastic leap to ¥2.1 billion from ¥0.4 billion in FY
Slide 4: Specialty Plastics Division
However, in industrial chemicals, Kureha expects to be able to maintain profitability by responding flexibly and accurately to raw material price fluctuations and market movements. Kureha will also be focusing on expanding sales volumes of Metconazole. Specialty Plastics Division Major product areas
Slide 5: Construction and Other Operations
Construction and Other Operations Major product areas: construction, environmental engineering, transport/warehousing, and trading related businesses Construction: Performance driven by earthquake-related reconstruction Construction businesses saw a substantial increase in operating income due to an
Slide 6: FY2015 Outlook
FY2015 Outlook (¥ million, except where stated) March 2015 March 2016 Change (Forecast) (%) Sales 150,182 155,000 3.2 Operating income 14,551 13,000 (10.7) Recurring income 15,426 12,500 (19.0) Net income 9,195 8,000 (13.0) Earnings per share (EPS) (¥) 53.53 46.57 (13.0) For FY2015, Kureha forecasts
Slide 7: Capital expenditure, depreciation and R&D
During FY2014, capital expenditures for new and existing assets were reviewed in light of the business environment and partly scaled down, amounting to ¥17.6 billion, an 1 billion increase from the year before. Major areas of investment included the new PVDC plant and R&D facilities at the Iwaki Fac
Slide 8: Condensed Consolidated Balance Sheets and Statement of Income
<Appendix> Condensed Consolidated Balance Sheets ( ¥ millions) 31 March 2014 31 March 2015 Assets Current assets 73,429 75,949 Cash and cash equivalents 8,726 7,772 Fixed assets Tangible assets 111,684 123,185 Intangible assets 2,034 2,448 Investments and other assets 37,311 48,114 Total Assets 224,
Slide 9: Fiscal 2014 Results
Fiscal 2014 Results May 15, 2015
Slide 10: Contents
1 Contents 1. FY2014 Full-Year Results 2 • FY2014 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 • Mid-Term Business Plan vs. FY2015 Outlook 14 • Segment Outlo
Slide 11: 1. FY2014 Full-Year Results
2 1. FY2014 Full-Year Results (April 1, 2014 – March 31, 2015)
Slide 12: FY2014 Highlights
3 FY2014 Highlights (in 100 million yen except per-share values) FY2014 FY2013 % Change Net Sales 1,502 1,481 1.4% Operating income 146 119 22.3% Recurring income 154 122 26.4% Net income 92 74 24.9% Total assets 2,497 2,245 11.2% Net assets 1,206 1,062 13.6% Earnings per share (yen) 53.53 42.87 25%
Slide 13: Segment Performance: Advanced Materials
4 Segment Performance Advanced Materials In 100 million yen FY2014 FY2013 % Change Kureha Sales Carbon products 60 52 16% Advanced plastics 202 171 18% Other 5 1 489% Subsidiaries Sales Carbon products (China) 19 9 110% Battery materials 61 56 8% Other 241 224 8% Consolidated adjustment -227 -184 --
Slide 14: Specialty Chemicals
5 Specialty Chemicals In 100 million yen FY2014 FY2013 % Change Kureha Sales Industrial chemicals 106 98 8% Agrochemicals 98 118 -17% Pharmaceuticals 99 95 4% Subsidiaries Sales 88 88 0% Consolidated adjustment -35 -32 --- Kureha Group Sales Total 355 366 -3% Kureha Group Operating Income Total 79 7
Slide 15: Specialty Plastics
6 Specialty Plastics In 100 million yen FY2014 FY2013 % Change Kureha Sales Packaging materials 118 99 20% Consumer products 175 191 -8% Subsidiaries Sales Packaging materials (overseas) 124 127 -3% Other 148 130 14% Consolidated adjustment -100 -93 --- Kureha Group Sales Total 465 453 3% Kureha Gro
Slide 16: Construction and Other Operations
7 Construction In 100 million yen FY2014 FY2013 % Change Subsidiaries Sales Construction 257 250 2% Consolidated adjustment -89 -78 --- Kureha Group Sales Total 167 172 -3% Kureha Group Operating Income Total 11 8 30% Increase in public construction projects related to post-earthquake reconstructi
Slide 17: Key Indicators
8 Key Indicators ( In 100 million yen) FY2014 FY2013 % Change Capital expenditure 176 165 7% Depreciation 83 91 -9% R&D expenses 50 45 10% Interest-bearing debt 866 772 12% Net interest expense -0 -1 --- ¥109.90/$1 ¥100.29/$1 Exchange rate --- ¥138.84/€1 ¥134.44/€1 Number of employees 4,123 4,080 1%
Slide 18: Extraordinary Income/Losses
9 Extraordinary Income/Losses ( In 100 million yen) FY2014 FY2013 Change Compensation income 3.1 0.8 2.4 Extraordinary Gain on sales of investment securities 0.7 1.9 -1.2 income Gain on sales of noncurrent assets 0.4 0.2 0.2 Subsidy income -- 4.8 -4.8 Others 0.1 0.2 -0.1 Total 4.3 7.9 -3.6 Loss on s
Slide 19: Balance Sheets
10 Balance Sheets March 31 March 31 Change ( In 100 million yen) 2015 2014 Assets Cash and cash equivalents 78 87 -10 Accounts and notes receivable-trade 290 304 -15 Inventories 328 281 47 Other current assets 64 62 3 Property, plant and equipment 1,232 1,117 115 Intangible assets 24 20 4 Investment
Slide 20: Cash Flow
11 Cash Flow FY2014 FY2013 Pre-depreciation profit 219 199 Increase/decrease in assets and liabilities -63 -38 Cash flow from Payments of corporation tax -41 -30 operating activities Other-net 11 8 Total 125 141 Cash flow from investing activities -188 -204 Cash flow from financing activities 50 47
Slide 21: 2. FY2015 Full-Year Forecasts
12 2. FY2015 Full-Year Forecasts (April 1, 2015 – March 31, 2016)
Slide 22: FY2015 Full-Year Outlook
13 FY2015 Full-Year Outlook In 100 million yen FY2015e FY2014 % 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 23: Mid-term Business Plan (GG-II) vs. FY2015 Outlook
Mid-term Business Plan (“GG-ll”) 14 vs. FY2015 Outlook (In 100 million yen) Net sales Operating income 1,650 150 1,550 130 FY2015 sales outlook is ¥10 billion lower than the GG-ll mid-term business targets due to: • Slower growth in solar cell-related and LiB-related markets • Pharmaceuticals sale
Slide 24: Segment Outlook: Advanced Materials
15 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) 22 19 16% Battery materials 78 61 28% Other 290 242 20% Consolidated adjustment -285 -227 --
Slide 25: Specialty Chemicals outlook
16 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 26: Specialty Plastics outlook
17 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 27: Construction and Other Operations outlook
18 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% Earthquake recovery-related projects expected to decrease Other Operations
Slide 28: Key Indicators
19 Key Indicators ( In 100 million yen) FY2015e FY2014 % Change Capital expenditure 175 176 0% Depreciation 100 83 21% R&D expenses 57 50 15% Interest-bearing debt 892 866 3% Net interest expense -1 -0 --- ¥115/$1 ¥109.90/$1 Exchange rate --- ¥135/€1 ¥138.84/€1 Number of Employees 4,213 4,123 2%
Slide 29: Cash Flow
20 Cash Flow FY2015e FY2014 Pre-depreciation profit 208 219 Increase/decrease in assets and liabilities -45 -63 Cash flow from Payments of corporation tax -28 -41 operating activities Other-net 17 11 Total 152 125 Cash flow from investing activities -164 -188 Cash flow from financing activities 5 50
Slide 30: 3. Consolidated Companies
21 3. Consolidated Companies
Slide 31: Sales and Assets
22 Sales and Assets FY2014 FY2013 Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Corporation 899 1,930 824 1,760 74 170 Kureha Trading Group (2) 286 132 288 134 -3 -2 Kureha Corporation 268 -- 224 -- 44 -- Kureha Trading Group (2) 98 -- 98 -- 0 -- Kureha Battery M
Slide 32: Sales and Assets
23 Sales and Assets FY2014 FY2013 Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Nishiki Group (4)* 218 114 184 96 33 17 Construc- Kureha Engineering Co. 39 25 66 36 -27 -11 tion Consolidation adjustments -89 -- -78 -- -11 -- Total 167 -- 172 -- -5 -- Kureha Ecolo
Slide 33: 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