Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/10 Earnings Presentation
24 slides from Toyobo's earnings presentation, Nov 5, 2009
Slide 1: Presentation to Investors: First-half results FY 3/10
Presentation to Investors First-half results FY 3/10 Ryuzo Sakamoto President TOYOBO Co., Ltd. November 5, 2009 (Analysts’ Meeting)
Slide 2: Highlights
Highlights Although revenues and earnings both declined sharply year on year, business performance is improving. Operating income and net income both turned positive during the second quarter. All business segments turned profitable. Measures to reduce fixed expenses and the recovery of liquid cry
Slide 3: Agenda
Ⅰ Results for 1st Half of FY 3/10 Ⅱ Forecasts for FY 3/10 Ⅲ Management Policy Ⅳ Appendix
Slide 4: Results for the 1st Half of FY 3/10
Ⅰ． Results for the 1st Half of FY 3/10
Slide 5: Results for the 1st Half of FY 3/10
（１） Results for the 1st Half of FY 3/10 \ bn. H1 H2 Change H1 FY 3/10 (YOY) Plan FY 3/09 FY 3/09 Q1 Q2 ％ (May /09) Net sales 202 165 73 82 155 -23.5% 164 Operating income 10 2 -1 4 3 -69.1% 5 Ratio to sales 4.8% 0.9% -1.0% 4.5% 1.9% - 2.9% Net income -6 -7 -2 1 -1 -90.2% 0 Depreciation 9 12 - - 10 +
Slide 6: Analysis of Changes in Operating Income
（２） Analysis of Changes in Operating Income 【Q4 FY 3/09 →Q1 FY 3/10 →Q2 FY 3/10 】 Q4 FY 3/09 Q1 FY 3/10 Q2 FY 3/10 Raw material and fuel costs decrease +1.3 Volume 3.7 rise +3.1 -0.7 -1.5 （¥ bn.） Raw material and fuel costs decrease etc. Volume +1.9 decrease -2.1 Fixed costs reduction Down in prices
Slide 7: Financial Position
（３） Financial Position \ bn. Mar. 31, Sep. 30, Change 2009 2009 Total assets 444 453 +9 Cash and deposits 10 19 +9 Inventories 76 66 -10 Net assets 134 129 -5 Shareholders' equity 98 105 +6 （ Equity ratio） 22.1% 23.1% Minority interests 36 24 -12 Interest-bearing debt 179 189 +10 D/E ratio 1.82 1.81
Slide 8: CR100 (¥10 billion Cost Reduction)
（４） CR100 (¥10 billion Cost Reduction) \ bn. Plan* Progress FY FY H1 03/10 03/11 FY 3/10 Variable costs 4 6 2 Fixed costs** 3 5 3 Production 2 3 2 Sales/ administration 1 2 1 Total 7 10 5 * Savings as compared with FY3/09 ** Without depreciation 8
Slide 9: Analysis of Changes in Operating Income
（５） Analysis of Changes in Operating Income 【H1 FY 3/09 → H1 FY 3/10】 Volume decrease Decrease in -11.2 fixed costs Others 9.7 +2.1 CR100 +0.6 3.0 （¥ bn.） H1 FY 3/09 Decrease in H1 FY 3/10 variable costs +2.4 H1 H1 Decrease in prices FY 3/09 FY 3/10 -7.5 Naphtha price Raw material and fuel costs dec
Slide 10: Results by Segment
（６） Results by Segment \ bn. Net Sales Operating Income Plan H1 H2 H1 H1 H2 H1 (May /09) FY 3/09 FY 3/09 FY 3/10 FY 3/09 FY 3/09 FY 3/10 Films & Functional Polymers 70 53 55 5 0 1 1 Industrial Materials 42 33 29 3 1 1 2 Life Science 17 16 16 2 1 2 2 Specialty 128 102 100 10 2 4 5 Textiles 60 52 46 1
Slide 11: Films & Functional Polymers
（６） １） Films & Functional Polymers Films for LCD and optical uses volumes recovered Sales of packaging films and VYLON series of industrial adhesives were firm \ bn. Industrial Films ・Increased volume and measures H1 H2 H1 FY 3/10 to reduce fixed costs contributed FY 3/09 FY 3/09 Q1 Q2 ・Developed ne
Slide 12: Industrial Materials
２） Industrial Materials Sharp reduction in automotive-related industrial materials production in Q1, followed by a recovery in shipments in Q2 \ bn. Airbag Fabrics H1 H2 H1 FY 3/10 ・Volume recovery from the latter FY 3/09 FY 3/09 Q1 Q2 half of Q2 ・Large impact from low capacity Net sales 42 33 13 16
Slide 13: Life Science
３） Life Science Medical membranes and contract manufacturing of pharmaceuticals were firm \ bn. Hollow Fiber Membranes H1 H2 H1 FY 3/10 for Artificial Kidneys (AKH) FY 3/09 FY 3/09 Q1 Q2 ・Strong demand from overseas ・Improved productivity Net sales 17 16 7 9 16 Bioproducts Operating income 2 1 1 1 2
Slide 14: Textiles
４） Textiles Restructuring achieved profitable operations Further reductions to capital employed \ bn. Acrylic fibers “EXLAN” H1 H2 H1 FY 3/10 FY 3/09 FY 3/09 Q1 Q2 ・Profitable operations achieved from restructuring efforts Net sales 60 52 22 24 46 ・Domestic and export volumes Operating remain firm i
Slide 15: Forecasts for FY 3/10
II. Forecasts for FY 3/10
Slide 16: Forecasts for FY 3/10
（１） Forecasts for FY 3/10 \ bn. FY 3/10 (Forecast) Plan FY 3/09 H1 H2 (May /09) Net sales 367 155 170 325 340 Operating income 11 3 9 12 14 Ratio to sales 3.1% 1.9% 5.3% 3.7% 4.1% Net income -13 -1 3 3 3 Depreciation 21 10 10 20 CAPEX 20 9 6 15 Exchange rate （ \ /US$） 100 96 93 95 Naphtha price in J
Slide 17: Forecasts by Segment
（２） Forecasts by Segment \ bn. Net Sales Operating Income Plan FY FY 3/10 (Forecast) FY FY 3/10 (Forecast) (May /09) 3/09 H1 H2 3/09 H1 H2 Films & 122 55 62 117 4 1 5 6 5 Functional Polymers Industrial Materials 75 29 36 65 4 1 2 3 5 Life Science 33 16 19 35 3 2 2 4 4 Specialty 230 100 117 217 11 4
Slide 18: Management Policy
Il. Management Policy
Slide 19: Issues: Progress in the 1st Half of FY 3/10
（1） Issues: Progress in the 1st Half of FY 3/10 “Reinforcing Foundations, Laying the Cornerstones for Future Growth” Reinforcing Foundations •Secure profitability : Executed CR100 （YOY ¥-5 billion） •Increase cash flow : Reduced inventories （ ¥-10 billion）* •Improve asset efficiency : Decreased capit
Slide 20: Action from the 2nd Half Forward
（２）Action from the 2nd Half Forward “In preparation for a delay in economic recovery” “Implement measures for growth” Reinforcing Foundations ・ Successfully execute CR100 ・ Secure cash flow ・ Improve asset efficiency Laying the Cornerstones for Future Growth ・Create “Categories top” businesses ： Foc
Slide 21: Business Fields
Business Fields Electronics & Lifestyle Markets Auto- Information Environ- Life Businesses mobiles Displays ment & Safety Science Functional Films PET Films for FPD CPP Films for FPD Packaging Films Films & Functional Engineering Industrial New Catalyst Functional Polymers Plastics Adhesives for PET
Slide 22: Appendix
Appendix
Slide 23: Progress of Litigation regarding Body Armor Using ZYLON Fiber
Progress of Litigation regarding Body Armor Using ZYLON Fiber ＜Summary＞ ①In June 2003, an accident with body armor (BA) using Zylon fiber occurred in Pennsylvania, USA. (This is the only accident in which a bullet penetrated BA.) ②The injured/deceased persons and purchasers of the same type of BA su
Slide 24: Please Note
Please Note The business performance forecasts and targets included in the business plans contained in this presentation are based on information known to the Company’s management as of the day of presentation. Please be aware that the content of the future forecasts may differ significantly from ac