Kurita Water Industries Ltd. · TSE:6370
Kurita Water Industries — FY2015 Earnings Presentation
29 slides from Kurita Water Industries's earnings presentation, May 2, 2016
Slide 1: Results Presentation for the Fiscal Year Ended March 31, 2016
Kurita Water Industries Ltd. Results Presentation for the Fiscal Year Ended March 31, 2016 (Stock code: 6370) May 2, 2016
Slide 2: Table of Contents
Table of Contents I Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 II Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 III Direction of Management Reference Material
Slide 3: I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 1. Financial Highlights 2. Orders, Sales, Operating Income, and Operating Income Margin 3. Water Treatment Chemicals 4. Water Treatment Facilities (for the electronics industry) 5. Water Treatment Facilities (for general indu
Slide 4: Financial Highlights
I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (Billions of Yen) Fiscal Year Fiscal Year Year-on-Year Revised Initial to March to March Change Projections Projections 2015 2016 Orders 181.3 221.3 +22.1% 215.0 217.0 Net Sales 189.4 214.4 +13.2% 214.0 216.0 Operating Income
Slide 5: Orders, Sales, Operating Income, and Operating Income Margin
I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 Water treatment chemicals Water treatment facilities Total * denotes revised projections Orders Sales (Billions of Yen) 221.3 (Billions of Yen) 215.0 214.4 214.0 220 220 189.4 181.3 83.4 84.2 83.7 84.2 59.4 60.0 110 110 121.9
Slide 6: Water Treatment Chemicals
I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (Billions of Yen) 90 Orders Overseas orders increased significantly, reflecting the consolidation of KEAG. 45 84.2 Orders also increased in China and Southeast Asia. 83.4 59.4 In Japan, orders for process treatment chem
Slide 7: Water Treatment Facilities (electronics industry)
I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (Billions of Yen) 80 Orders Orders increased, reflecting the acquisition of large LCD and semiconductor contracts in China, South Korea, and Taiwan. 40 69.3 79.1 75.0 Orders for maintenance services increased steadily in
Slide 8: Water Treatment Facilities (general industries)
I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (Billions of Yen) 60 Orders Orders for dry methane fermentation facilities were received. Orders for facilities for electric power and the food industry rose. 30 52.6 58.8 55.8 0 03/2015 03/2016 (Billions of Yen) 60 Sales
Slide 9: Financial Condition
I. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 Assets Liabilities and Net Assets (Billions of Yen) (Billions of Yen) 294.5 298.1 294.5 298.1 Cash, deposits and 67.5 65.9 marketable 71.0 69.1 Liabilities (-1.6) securities (-1.9) Other current 81.5 84.6 assets (+3.1) 75.0 7
Slide 10: II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 1. Key Assumptions 2. Overview 3. Orders, Sales, Operating Income, and Operating Income Margin 4. Water Treatment Chemicals 5. Water Treatment Facilities (for the electronics industry) 6. Water Treatment Facilities (for general
Slide 11: Key Assumptions
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 Water Treatment Chemicals Production activity in the domestic manufacturing industry will remain roughly flat. In the domestic market, there will be increasing downward pressure on prices. In Europe, demand will recover a
Slide 12: Overview of FY2017 Business Plan
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 (Billions of Yen) Fiscal Year to Fiscal Year to Year-on-Year March 2016 March 2017 Change Actual Projection Orders 221.3 223.0 +0.8% Net Sales 214.4 222.0 +3.6% Operating Income 19.8 21.5 +8.4% Ordinary Income 20.4 22.0 +7.6% N
Slide 13: Orders, Sales, Operating Income Forecast
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 Water treatment chemicals Water treatment facilities Total Orders Sales (Billions of Yen) 221.3 223.0 (Billions of Yen) 214.4 222.0 220 220 83.4 85.9 83.7 85.9 110 110 137.8 137.1 130.7 136.1 0 0 03/2016 03/2017 03/2016 03/2017
Slide 14: Water Treatment Chemicals Forecast
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 (Billions of Yen) 90 Orders The Group will work to expand share in the domestic market by enhancing its ability to make proposals. 45 85.9 Orders at KEAG are expected to grow overseas. 83.4 Growth in orders, other than th
Slide 15: Water Treatment Facilities (electronics) Forecast
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 (Billions of Yen) 80 Orders Orders for hardware are expected to decline both in Japan and overseas. 40 79.1 75.3 Orders for maintenance services in Japan are expected to fall due to a decline in capacity utilization at cust
Slide 16: Water Treatment Facilities (general industries) Forecast
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 (Billions of Yen) 60 Orders Expectations are placed on emerging demand in electric power industries due to electric power deregulation. 30 58.8 61.7 There are also expectations of replacement investment in hardware for gene
Slide 17: Ultrapure Water Supply Business Sales
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 (Billions of Yen) 40 +1.9 -2.0 +3.8 -3.6 32.2 New Expiration of 32.0 New 32.0 Expiration 32.2 32.2 construction, contracts contracts, of contracts addition addition 20 0 03/2015 03/2016 03/2017 13
Slide 18: Service Business Revenue
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 Service Business Revenue Water treatment chemicals in the Water Treatment Facilities Segment Water treatment facilities (services) Water treatment facilities (hardware) (Billions of Yen) 98.9 101.2 (Billions of Yen) 100 94.9 90
Slide 19: Overseas Businesses: Sales by Region and Business
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 Sales by Region Sales by Overseas Business Segment Asia N. America EMEA (formerly Europe) Other Water treatment chemicals Water treatment facilities (Billions of Yen) (Billions of Yen) 72 70.3 72 70.3 63.9 3.5 63.9 3.0 21.5 20.
Slide 20: Capital Expenditures, Depreciation, and R&D Expenses
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 Capital Expenditures and Depreciation R&D Expenses Capital expenditures Capital expenditures Depreciation (ultrapure water (excl. ultrapure water R&D expenses Percentage of net sales supply business) supply business) (Billions
Slide 21: Basic Dividend Policy
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2017 Basic Dividend Policy Kurita Water Industries’ basic policy is to provide shareholders with stable dividends. Setting a payout ratio of 30 to 50% as our target, we will continuously work to increase dividends, making decisions
Slide 22: III. Direction of Management
III. Direction of Management 1. Achievement of Corporate Philosophy 2. To Achieve CK-17 (Competitive Kurita 2017) Plan 3. Continued Corporate Governance Reform 4. Improvement of Capital Efficiency
Slide 23: Corporate Philosophy
III. Direction of Management Corporate Philosophy: Study the properties of water, master them, and we will create an environment in which nature and man are in harmony Business Human Technology resources Resolving water and environmental challenges Helping to achieve a sustainable society 18
Slide 24: Achievements in the First Year of CK-17
III. Direction of Management 1 Achievements in the first year (fiscal year ended March 31, 2016) Priority measures Achievements in the first year Enhanced the functions of chemicals (Newly Developed Multi-Functional Polymer) 1 Create competitive products Used KCR Center (Kurita Customer Relation
Slide 25: Initiatives from the Second Year
III. Direction of Management 2 Initiatives from the second year (fiscal year ending March 31, 2017) Priority measures Initiatives from the second year Enhance the functions of chemicals (use the R&D capabilities of the new KEG). 1 Create competitive products Create new services that will help im
Slide 26: Continued Corporate Governance Reform
III. Direction of Management Achievements in fiscal year ended March 31, 2016 Review the roles and authority of the Board of Directors and management committees. Consider an officers’ compensation system that will be more closely linked to results. Improve transparency in the process of nomina
Slide 27: Uses of Cash (policy)
III. Direction of Management Uses of Cash (policy) ¥87.0 ‒ ¥90.0 billion ¥87.0 ‒ ¥90.0 billion Strive to continue raising dividends, aiming for Dividends a payout ratio of 30-50% over 5 years. Prioritize investment in promising businesses Share buybacks and consider share buybacks using surplus
Slide 28: Reference Material: Operating Income Change
Reference Material (Billions of yen) +7.8 -11.1 19.4 Impact of +3.7 19.8 increased revenue Increase in Effect of change in SG&A expenses cost of sales ratio 03/2015 03/2016 Note: The effect of change in the cost of sales ratio is calculated using the gross profit margin. 23
Slide 29: Contact and Forward-looking Statements
■ U R L ■ h t t p : / / i r. k u r i t a . c o . j p / ■ M A I L ■ ir@kurita.co.jp Forward-looking Statements This presentation contains forward-looking statements, business plan projections, and judgments based on information available to management at the time of writing. Due to the existence of a
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