Slide 1: Kureha Corporation Reports Fiscal 2015 Results
Kureha Corporation Reports Fiscal 2015 Results Tokyo, Japan – May 2016 – Kureha Corporation (“Kureha”), a leading global supplier of specialty chemicals and plastics, has reported its results for the fiscal year ended March 31, 2016 (FY2015). On a consolidated basis, sales decreased by 5.1% year-on-
Slide 2: Performance by Segment
Performance by Segment Note: Starting from FY2016, ending March 2017, Kureha will be reporting financial performance based on International Financial Reporting Standards (IFRS) instead of the Japanese Generally Accepted Accounting Principles (J-GAAP). Outlook figures for FY2016 given in this section
Slide 3: Advanced Materials and Specialty Chemicals Segments
Advanced Materials Segment Major product areas: advanced plastics (PPS, PVDF, PGA), carbon materials Advanced Materials segment sales rose 1% year-on-year to 36.5 billion yen. The segment also saw operating income rising further to 1.1 billion yen, a development driven by demand growth for PGA and P
Slide 4: Specialty Chemicals: Pharmaceuticals, agrochemicals, industrial chemicals
Pharmaceuticals / agrochemicals: Slowing demand and fall in income Sales and operating income decreased due to lower sales volumes for agrochemicals, which demand weakened in North America. The pharmaceutical business was affected by the lack of one-time income related to a pharmaceutical sales cont
Slide 5: Specialty Plastics and Construction
Food packaging materials: Absence of large machinery orders affects sales Sales of heat-shrinkable multilayer film grew, and Kureha also continued efforts to exercise cost control. However, the absence of a large order for packaging machinery negatively affected sales for this business. Outlook (IFR
Slide 6: FY2016 Outlook (IFRS)
Sales for Other Operations are estimated to increase to 17.5 billion yen, while operating income is projected to be 1.4 billion yen. This growth will be largely driven by further volume growth in the micro-PCB waste treatment business, offsetting higher R&D costs. Kureha will continue to focus on en
Slide 7: Depreciation, R&D and interest-bearing debt
Depreciation rose from 8.3 billion yen to 9.9 billion yen year-on-year, reflecting the increase in depreciation costs related to new PVDF and PVDC production facilities. R&D spending remained at a similar level year-on-year, decreasing slightly from 5.0 billion yen to 4.9 billion yen. Kureha views c
Slide 8: Condensed Consolidated Balance Sheets and Income Statement
Condensed Consolidated Balance Sheets (Millions of yen) March 2015 March 2016 Assets Current assets 75,949 75,357 Cash and cash equivalents 7,772 6,621 Fixed assets Tangible assets 123,185 117,808 Intangible assets 2,448 2,213 Investments and other assets 48,114 41,253 Total Assets 249,697 236,633 L
Slide 9: FY2015 Financial Results
FY2015 Financial Results May 12, 2016
Slide 10: Contents
1 Contents 1. FY2015 Full-Year Results 2 • FY2015 Highlights 3 • Segment Performance 4-7 • Key Indicators 8 • Extraordinary Income/Losses 9 • Balance Sheets 10 • Cash Flow 11 2. FY2016 Outlook 12 • FY2016 Outlook (1) 13 • FY2015 Results: GAAP vs. IFRS 14 • FY2016 Outlook (2) 15 • FY2016 Outlook (3)
Slide 11: 1. FY2015 Full-Year Results
2 1. FY2015 Full-Year Results (April 1, 2015 – March 31, 2016)
Slide 12: FY2015 Highlights
3 FY2015 Highlights (in billion yen, except per-share amounts and ratios) FY2015 FY2014 % Change Net Sales 142.6 150.2 -5.1% Operating income 12.6 14.6 -13.4% Recurring income 12.0 15.4 -22.5% Net income 7.3 9.2 -20.2% Total assets 236.6 249.7 -5.2% Net assets 119.3 120.6 -1.1% Earnings per share (y
Slide 13: Segment Performance: Advanced Materials
4 Segment Performance (in billion yen) Advanced Materials FY2015 FY2014 % Change Kureha Sales Carbon products 5.2 6.0 -13% Advanced plastics 21.3 20.2 6% Other 0.4 0.5 -26% Subsidiaries Sales Carbon products (China) 1.5 1.9 -21% Battery materials 6.8 6.1 13% Other 24.8 24.1 3% Consolidated adjustmen
Slide 14: Specialty Chemicals
5 (in billion yen) Specialty Chemicals FY2015 FY2014 % Change Kureha Sales Industrial chemicals 9.4 10.6 -11% Agrochemicals 9.5 9.8 -3% Pharmaceuticals 7.4 9.9 -25% Subsidiaries Sales 7.8 8.8 -11% Consolidated adjustment -2.9 -3.5 -- Kureha Group Sales Total 31.2 35.5 -12% Kureha Group Operating Inc
Slide 15: Specialty Plastics
6 (in billion yen) Specialty Plastics FY2015 FY2014 % Change Kureha Sales Packaging materials 7.9 11.8 -34% Consumer products 19.0 17.5 9% Subsidiaries Sales Packaging materials (overseas) 12.0 12.4 -3% Other 13.1 14.8 -11% Consolidated adjustment -7.7 -10.0 -- Kureha Group Sales Total 44.2 46.5 -5%
Slide 16: Construction and Other Operations
7 Construction (in billion yen) FY2015 FY2014 % Change Subsidiaries Sales Construction 24.6 25.7 -4% Consolidated adjustment -8.4 -8.9 -- Kureha Group Sales Total 16.2 16.7 -3% Kureha Group Operating Income Total 1.5 1.1 36% Profit improved on continued demand for public post-quake reconstruction
Slide 17: Key Indicators
8 Key Indicators ( In billion yen) FY2015 FY2014 % Change Capital expenditure 12.1 17.6 -31% Depreciation 9.9 8.3 20% R&D expenses 4.9 5.0 -2% Interest-bearing debt 79.7 86.6 -8% Net interest expense -0.6 0.9 -- ¥120.13/$1 ¥109.90/$1 Currency exchange rate --- ¥132.80/€1 ¥138.84/€1 Number of employe
Slide 18: Extraordinary Income/Losses
9 Extraordinary Income/Losses ( In billion yen) FY2015 FY2014 Change Compensation income 0.22 0.31 -0.1 Extraordinary Gain on sales of investment securities 4.58 0.07 4.51 income Gain on sales of noncurrent assets 0.01 0.04 -0.03 Others 0.08 0.01 -0.08 Total 4.89 0.43 4.46 Restructuring costs 4.49 -
Slide 19: Balance Sheets
10 Balance Sheets March 31 March 31 Change ( In billion yen) 2016 2015 Assets Cash and cash equivalents 6.6 7.8 -1.2 Accounts and notes receivable-trade 30.2 29.0 1.2 Inventories 33.2 32.8 0.4 Other current assets 5.3 6.4 -1.1 Property, plant and equipment 117.8 123.2 -5.4 Intangible assets 2.2 2.4
Slide 20: Cash Flow
11 Cash Flow ( In billion yen) FY2015 FY2014 Pre-depreciation profit 20.5 21.9 Increase/decrease in assets and liabilities -2.2 -6.3 Cash flow from Payments of corporation tax -4.3 -4.1 operating activities Other-net 0.0 1.1 Total 14.0 12.5 Cash flow from investing activities -6.0 -18.8 Cash flow fr
Slide 21: 2. FY2016 Outlook
12 2. FY2016 Outlook (April 1, 2016 – March 31, 2017)
Slide 22: FY2016 Full-Year Outlook (1)
13 FY2016 Full-Year Outlook (1) FY2016 Outlook (IFRS) In billion yen except where stated FY2016 Full-Year (Half-Year) Outlook FY2016 Full-Year Outlook Capital expenditure 16.5 142.0 Net sales (65.0) Depreciation 10.8 R&D expenses 5.4 10.5 Interest-bearing debt 79.7 Operating income (3.5) Net interes
Slide 23: FY2015 Results - GAAP and IFRS
Reference: 14 FY2015 Results - GAAP and IFRS Starting from FY2016, Kureha’s financial performance is reported based on the International Financial Reporting Standards (IFRS) instead of the Japanese Generally Accepted Accounting Principles (JPN GAAP). For comparison purposes, our FY2015 results are p
Slide 24: FY2016 Outlook (2)
15 FY2016 Outlook (2) ( In billion yen) FY2015 — IFRS [before audit] FY2016 — IFRS Net sales 140.7 Net sales 142.0 (FY2016) *1 Includes subsidy income of ¥8b Operating income Operating income 12.5 11.0 *2 Includes losses on reduction of before adjustments before adjustments non-current assets (¥7b)
Slide 25: FY2016 Outlook (3)
16 FY2016 Outlook (3) FY2015 Results (IFRS) ( In billion yen) Advanced Specialty Specialty Construct Other Segment Adjustment Total Materials Chemicals Plastics -ion operations Total Net sales 35.5 30.6 42.1 16.2 16.3 140.7 140.7 Intersegment eliminations -0.1 Other income 0.8 Other expenses 5.9 Ope
Slide 26: FY2016 Segment Outlook: Advanced Materials
17 FY2016 Segment Outlook (IFRS) ( In billion yen) Advanced Materials FY2016e FY2015 % Change Kureha Sales Carbon products 4.1 5.2 -22% Advanced plastics 26.5 21.3 24% Other 0.4 0.4 2% Subsidiaries Sales Carbon products (China) 0.9 1.6 -43% Other 29.1 31.1 -6% Consolidated adjustment -21.0 -24.2 --
Slide 27: Specialty Chemicals Outlook
18 ( In billion yen) Specialty Chemicals FY2016e FY2015 % Change Kureha Sales Industrial chemicals 8.5 9.4 -10% Agrochemicals 8.0 9.5 -15% Pharmaceuticals 5.5 7.4 -26% Subsidiaries Sales 7.5 7.2 3% Consolidated adjustment -3.0 -2.9 -- Kureha Group Sales Total 26.5 30.6 -13% Kureha Group Operating In
Slide 28: Specialty Plastics Outlook
19 ( In billion yen) Specialty Plastics FY2016e FY2015 % Change Kureha Sales Packaging materials 7.8 7.9 -1% Consumer products 19.2 18.5 4% Subsidiaries Sales Packaging materials (overseas) 13.6 12.5 9% Other 11.0 10.4 5% Consolidated adjustment -7.6 -7.2 --- Kureha Group Sales Total 44.0 42.1 4% Ku
Slide 29: Construction and Other Operations Outlook
20 Construction ( In billion yen) FY2016e FY2015 % Change Subsidiaries Sales Construction 21.0 21.2 -1% Consolidated adjustment -7.0 -5.0 --- Kureha Group Sales Total 14.0 16.2 -14% Kureha Group Operating Income Total 0.5 1.5 -66% Earnings likely decrease on fewer post-quake projects and higher la
Slide 30: Cash Flow Outlook
21 Cash Flow ( In billion yen) FY2016e FY2015 Pre-depreciation profit 21.3 20.5 Increase/decrease in assets and liabilities -6.5 -2.2 Cash flow from Payments of corporation tax -2.5 -4.3 operating activities Other-net 7.5 0.0 Total 19.8 14.0 Cash flow from investing activities -16.9 -6.0 Cash flow f
Slide 31: Mid-Term Management Plan: FY2018 Quantitative Targets
Mid-Term Management Plan 22 FY2018 Quantitative Targets ( In billion yen) FY2018 JPN GAAP Net sales Operating Net income income attributable to Kureha Advanced Materials 55.0 7.0 Specialty Chemicals 30.0 2.0 Specialty Plastics 50.0 5.0 Construction 13.0 0.3 Other Operations 22.0 1.7 Total 170.0 16.0
Slide 32: 3. Consolidated Companies
23 3. Consolidated Companies
Slide 33: Sales and Assets
24 Sales and Assets FY2015 FY2014 Change ( In billion yen) Net sales Total assets Net sales Total assets Net sales Total assets Kureha Corporation 80.1 188.3 86.4 193.0 -6.2 -4.7 Kureha Trading Group (2) 25.1 12.2 28.6 13.2 -3.5 -1.1 Kureha Corporation 27.0 -- 26.8 -- 0.2 -- Kureha Trading Group (2)
Slide 34: Sales and Assets (continued)
25 FY2015 FY2014 Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Nishiki Group (4)* 21.2 12.1 21.8 11.4 -0.6 0.7 Construc- Kureha Engineering Co. 3.5 3.0 3.9 2.5 -0.4 0.5 tion Consolidation adjustments -8.4 -- -8.9 -- 0.5 -- Total 16.2 -- 16.7 -- -0.5 -- Kureha Eco
Slide 35: 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