Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/22 Earnings Presentation
26 slides from Toyobo's earnings presentation, Nov 8, 2021
Slide 1: Presentation to Investors for the First Half Ended September 30, 2021
November 8, 2021 Presentation to Investors for the First Half Ended September 30, 2021 TOYOBO CO., LTD.
Slide 2: Highlights
Highlights H1 FY 3/22 - Despite the impact of rising raw material and fuel prices, sales and profit increased as industrial films and reagents for PCR testing performed strongly. - Operating profit of ¥17.1 bn. (1.6-fold), and profit of ¥9.7 bn. (3.7-fold) Profit attributable to Net sales Operating
Slide 3: Summary of Results: P&L
Summary of Results: P&L (¥bn.) FY 3/21 FY 3/22 YOY H1 H2 H1 Amount % Net sales 157.5 179.9 183.9 + 26.4 +16.7% Operating profit 10.4 16.2 17.1 + 6.7 + 64.2% (Ratio to sales) 6.6 % 9.0 % 9.3% - - Ordinary profit 5.9 14.8 13.3 + 7.4 + 127.0% Extraordinary income and losses -1.9 -13.2 -1.8 + 0.1 - Prof
Slide 4: Analysis in Changes in Operating Profit
Analysis in Changes in Operating Profit Volume Others 20.0 - Industrial film +10.9 -1.1 - PCR-related products 15.0 Raw materials and fuel costs Prices -5.1 +2.0 (¥bn.) 10.0 17.1 (＋6.7 ) 5.0 10.4 - Depreciation - Safety and disaster prevention measure expenses 0.0 H1 FY 3/21 H1 FY 3/22 Previous H1 F
Slide 5: Summary of Results: BS
Summary of Results: BS (¥bn.) (B) (A) Mar. 31, 2020 Mar. 31, 2021 Sep. 30, 2021 (A) - (B) Total assets 488.9 491.2 503.7 + 12.5 Cash and deposits 25.2 34.7 26.3 - 8.4 Inventories 80.6 76.3 86.8 + 10.5 Property, plant and equipment 231.5 224.6 228.2 + 3.6 Net assets 182.6 188.6 198.6 + 10.0 Sharehold
Slide 6: Summary of Results: Segment
Summary of Results: Segment (¥bn.) Net sales Operating profit H1 FY 3/21 H1 FY 3/22 H1 FY 3/21 H1 FY 3/22 YOY Films and Functional 73.8 85.9 8.7 12.2 + 3.5 Materials Mobility 15.0 21.6 -1.3 -0.9 + 0.4 Lifestyle and Environment 50.2 54.7 1.8 1.9 + 0.1 Life Science 12.4 16.3 1.6 4.6 + 3.0 Real Estate
Slide 7: Films and Functional Materials
Films and Functional Materials (¥bn.) FY 3/21 FY 3/22 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 36.3 37.5 73.8 45.7 40.2 85.9 + 12.1 +16.5% Operating profit 3.9 4.8 8.7 6.8 5.4 12.2 + 3.5 +40.4% (OPM) 10.8% 12.8% 11.8% 14.9% 13.5% 14.2% ‐ ‐ Packaging film - Impacted by rising raw material prices desp
Slide 8: Topics: Films Business
Topics: Films Business Mold releasing film for MLCC - Market growth of 7% or more annually - Strength: Only manufacturer in the world that can constantly carry out manufacturing of high-end products from base film to processing - 25% share in FY 3/21. Aim for 35% share by 2025. ➢ Increase of process
Slide 9: Mobility
Mobility (¥bn.) FY 3/21 FY 3/22 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 6.8 8.2 15.0 11.1 10.5 21.6 + 6.5 +43.5% Operating profit - 0.7 - 0.6 - 1.3 - 0.5 - 0.4 - 0.9 + 0.4 ‐ (OPM) - - - - - - ‐ ‐ Segment overall: Sales performed strongly due to recovery of automobile production in Japan and oversea
Slide 10: Lifestyle and Environment
Lifestyle and Environment (¥bn.) FY 3/21 FY 3/22 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 22.9 27.3 50.2 27.7 27.0 54.7 + 4.5 + 9.0% Operating profit 0.3 1.4 1.8 1.5 0.4 1.9 + 0.1 + 5.7% (OPM) 1.5% 5.2% 3.5% 5.4% 1.4% 3.4% ‐ ‐ Environmental solutions - Volatile organic compound (VOC) emissions treat
Slide 11: Life Science
Life Science (¥bn.) FY 3/21 FY 3/22 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 6.3 6.0 12.4 7.5 8.9 16.3 + 4.0 + 32.3% Operating profit 1.0 0.6 1.6 1.9 2.8 4.6 + 3.0 + 188.8% (OPM) 15.7% 10.0% 12.9% 24.9% 31.1% 28.2% ‐ ‐ Biotechnology - Sales of raw materials and reagents for PCR testing, and genetic
Slide 12: Topics: Medical Products Business
Topics: Medical Products Business Artificial kidney hollow fiber - Patients using membranes for artificial kidneys up 7% annually ➢ New construction of plant for integrated production ・ Integrated production system from hollow fiber production to processing and product commercialization for dialyzer
Slide 13: Forecasts for FY 3/22
Forecasts for FY 3/22 Forecasts of operating profit of ¥29.0 bn., net profit of ¥13.0 bn. remain unchanged due to concerns regarding the impact of rising raw material prices and fuel prices, and the production curtailment of automobiles despite strong performance of industrial films. (¥bn.) FY 3/21
Slide 14: Analysis in Changes in Operating Profit
Analysis in Changes in Operating Profit 35.0 Volume Others Raw materials +10.9 -2.3 and fuel costs Prices 30.0 -10.6 +4.4 25.0 20.0 (¥bn.) 15.0 26.7 29.0 - Industrial film - PCR-related products ( ＋2.3 ) 10.0 - Depreciation - Safety and disaster prevention 5.0 measure expenses 0.0 FY 3/21 FY 3/22 Pr
Slide 15: Forecasts by Segment
Forecasts by Segment (¥bn.) Net sales Operating profit FY 3/21 FY 3/22 FY 3/21 FY 3/22 Previous YOY forecasts result forecasts result forecasts (Aug. 2021) Films and 152.8 170.0 20.0 21.0 + 1.0 20.3 Functional Materials Mobility 36.6 40.0 - 1.6 - 1.4 + 0.2 - 1.0 Lifestyle and Environment 109.1 111.0
Slide 16: Management issues
Management issues (1) Recovery of trust (priority issue) (i) Thorough safety, disaster prevention and quality assurance (ii) Strengthening Risk Management (2) Rearrangement of business portfolio (i) Prioritized investment into expanding businesses (Films, Life Science, Environment) (ii) Observe room
Slide 17: Specific measures to prevent incidents of quality misconduct
Specific measures to prevent incidents of quality misconduct Objective: Manufacturing that promises safety and security to customers from the customer’s perspective Respond to the four elements behind misconduct: Opportunity x Motivation x Justification x Ignorance Opportunity ⇒ Change the system Mo
Slide 18: Roadmap for Building the Quality System
Roadmap for Building the Quality System FY2022 FY2023 FY2024 FY2025 and forward Regain trust Unwavering trust Priority Issues Inspections to guarantee Instill the concept of quality quality, build quality in the assurance across the product processes lifecycle Respond to external certifications Emer
Slide 19: Appendix
Appendix
Slide 20: Business performance
Business performance (¥bn.) FY 3/21 FY 3/22 Net sales Q1 Q2 Q3 Q4 full year Q1 Q2 Films and Funcitonal Materials 36.3 37.5 39.2 39.8 152.8 45.7 40.2 Mobility 6.8 8.2 10.5 11.1 36.6 11.1 10.5 Lifestyle and Environment 22.9 27.3 27.1 31.9 109.1 27.7 27.0 Life Science 6.3 6.0 6.9 7.9 27.1 7.5 8.9 Real
Slide 21: Carbon Neutral: Targets and Measures
Carbon Neutral: Targets and Measures FY 3/31 Targets Scope1,2：Reduce GHG emissions by 30% or more (Compared to FY 3/14) FY 3/51 Targets Scope1,2：Aim for net zero GHG emissions Volume of avoided GHG emissions > Amount of GHG output in the Company’s value chain Measures - Introduction of fuel conversi
Slide 22: Carbon Neutral: Status
Carbon Neutral: Status Three viewpoints Commence TCFD for formulating carbon neutral strategy scenario analysis (1) Minimize GHG emissions associated with production activities (2) Reduce and avoid GHG emissions through provided solutions (3) Develop technologies, such as separation and collection o
Slide 23: To achieve “zero waste” emission: Circular Economy
To achieve “zero waste” emission: Circular Economy ●Biomass ・Resins from 100% biomass ●Material Recycling PEF ・Polyester polymerization catalyst ・Uses approx. 20% plant-derived with superior recyclability ingredients ”TOYOBO GS Catalyst” “BIOPLANA” ●Chemical Recycling Raw ・Support development for Ma
Slide 24: Environmentally Friendly Business: “ECO-PARTNER SYSTEM”
Environmentally Friendly Business: “ECO-PARTNER SYSTEM” - Our company independently evaluates and certifies environmental impact (implemented since 1998). - The product life cycle (from raw materials to disposal) is divided into 6 stages, and the environmental impact of each stage is evaluated. View
Slide 25: 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
Slide 26: All Rights Reserved
All Rights Reserved