Toyobo Co., Ltd. · TSE:3101
Toyobo — H1 FY3/25 Earnings Presentation
25 slides from Toyobo's earnings presentation, Nov 7, 2024
Slide 1: Presentation to Investors for the Second Quarter Ended September 30, 2024
November 7, 2024 Presentation to Investors for the Second Quarter Ended September 30, 2024 TOYOBO CO., LTD.
Slide 2: Highlights
Highlights H1 FY 3/25 Results Operating profit increased because profit improved for Industrial film, Environmental and Functional Materials and Functional Textiles, though operating profit of Life Science decreased. Net profit was ¥0.1 billion due to loss on disposal of fixed assets and the effect
Slide 3: Summary of Results: P&L
Summary of Results: P&L (¥ bn.) FY 3/24 FY 3/25 YOY H1 H2 H1 Amount % Net sales 199.4 214.8 209.2 +9.7 +4.9% Gross profit 41.8 46.2 47.3 +5.5 +13.2% Operating profit 2.4 6.6 6.9 +4.6 +193.5% (Ratio to sales) 1.2% 3.1% 3.3% - - Ordinary profit 1.0 5.9 3.2 +2.1 +206.5% Extraordinary income and losses
Slide 4: Analysis in Changes in Operating Profit
Analysis in Changes in Operating Profit 10.0 Volume Others + 2.4 - 1.5 8.0 Prices + 3.4 6.0 (¥ bn.) Depreciation Raw material Trial manufacturing 4.0 and fuel costs cost R&D expenses (+) 6.9 + 0.4 ( + 4.6 ) Resin and chemical 2.0 Films Films Resin and chemical 2.4 Environmental solutions Textiles 0.
Slide 5: Summary of Results: BS
Summary of Results: BS (B) (A) (¥ bn.) Mar. 31, 2023 Mar. 31, 2024 Sep. 30, 2024 (A)-(B) Total assets 588.9 607.0 603.2 - 3.8 Cash and deposits 60.7 33.8 28.4 - 5.4 Inventories 121.9 122.0 120.0 - 2.0 Property, plant and equipment 240.2 281.5 291.9 +10.4 Net assets 221.4 230.1 228.9 - 1.2 Shareholde
Slide 6: Summary of Results: Segment
Summary of Results: Segment (¥ bn.) (B) (A) Net sales Operating profit FY 3/24 FY 3/25 FY 3/24 FY 3/25 YOY H1 H2 H1 H1 H2 H1 (A)-(B) Films 78.1 78.5 82.8 1.4 1.3 3.0 +1.6 Life Science 16.6 18.0 17.2 2.4 2.0 0.9 - 1.5 Environmental and Functional Materials 52.5 62.8 55.2 0.4 4.3 3.4 +3.0 Functional T
Slide 7: Films
Films (¥ bn.) FY 3/24 FY 3/25 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 39.0 39.1 78.1 42.1 40.7 82.8 +4.8 +6.1% Operating profit 1.2 0.2 1.4 1.5 1.5 3.0 +1.6 +110.4% (OPM) 3.2% 0.5% 1.8% 3.6% 3.7% 3.6% - - Shipping results in the domestic market for OPP film for food packaging (22/Q1:100%) Packaging
Slide 8: Life Science
Life Science (¥ bn.) FY 3/24 FY 3/25 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 8.1 8.4 16.6 8.1 9.1 17.2 +0.6 +3.9% Operating profit 1.4 1.0 2.4 0.4 0.5 0.9 - 1.5 - 62.2% (OPM) 16.6% 12.4% 14.5% 4.6% 5.8% 5.3% - - Biotechnology - Sales of enzymes for diagnostic reagents were strong both in Japan and
Slide 9: Environmental and Functional Materials
Environmental and Functional Materials (¥ bn.) FY 3/24 FY 3/25 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 25.0 27.6 52.5 28.1 27.2 55.2 +2.7 +5.1% Operating profit - 0.7 1.0 0.4 1.3 2.1 3.4 +3.0 +806.9% (OPM) - 3.7% 0.7% 4.5% 7.7% 6.1% - - Resin and chemical - Sales of engineering plastics increased f
Slide 10: Functional Textiles and Trading
Functional Textiles and Trading (¥ bn.) FY 3/24 FY 3/25 YOY Q1 Q2 H1 Q1 Q2 H1 Amount % Net sales 22.2 23.5 45.7 24.0 23.9 47.9 +2.3 +5.0% Operating profit - 0.7 - 0.1 - 0.9 0.2 - 0.1 0.1 +1.0 - (OPM) - - - 0.8% - 0.2% - - Textiles - Sales of traditional Arabic fabric grew due to strong demand. Expor
Slide 11: Main Actions by Businesses (Progress)
Main Actions by Businesses (Progress) Segment Action plan (Planned in May 2024) Progress* Improvement in profitability of packaging film and further expansion of industrial film - Packaging film: Further price revisions. Full fledged launch of new production equipment and new product. D Review produ
Slide 12: Forecasts for Business Environment in the FY 3/25
Forecasts for Business Environment in the FY 3/25 Forecasts Previous Forecast Segment Business (August 2024) Situation* Difference from Previous Forecast Inventory adjustment finishes and the market moves Inventory adjustment finishes and the market moves Packaging toward a gradual recovery. toward
Slide 13: Forecasts for FY 3/25
Forecasts for FY 3/25 We forecast operating profit of ¥17.0 billion and net profit of ¥2.6 billion, based on improvement of profit for Packaging film and Life Science, in addition to volume increase for electronic materials, improvement of terms of trade and cost reduction. (¥ bn.) Previous FY 3/24
Slide 14: Analysis in Changes in Operating Profit
Analysis in Changes in Operating Profit Volume Others 20.0 + 5.1 - 2.1 Prices 16.0 + 4.7 Raw material （¥ bn.） 12.0 and fuel costs Depreciation + 0.3 Cost to launch 17.0 new equipment 8.0 Films Cost reduction ( +8.0 ) Films Resin and chemical Resin and chemical Biotechnology 4.0 9.0 Medical materials
Slide 15: Forecasts by Segment
Forecasts by Segment (¥ bn.) Net sales Operating profit FY 3/24 FY 3/25 FY 3/24 FY 3/25 Previous YOY forecasts Results Forecasts Results Forecasts (Aug. 2024) Films 156.5 170.0 2.7 6.5 +3.8 7.3 Life Science 34.6 38.0 4.4 3.2 - 1.2 3.7 Envrionmental and Functional Materials 115.3 115.0 4.7 8.0 +3.3 8
Slide 16: Management Policy in FY 3/25 (Progress)
Management Policy in FY 3/25 (Progress) Recover earning power to create the future Plans Progress Evaluation* 1. Thorough safety, disaster - Zero serious incident. prevention and quality assurance, P - the Regaining of ISO 9001 certification for engineering plastics. and compliance (basic premise) -
Slide 17: Appendix
TOYOBO Appendix
Slide 18: Operating Profit by Quarter
Operating Profit by Quarter (¥ bn.) 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY 3/22 FY 3/23 FY 3/24 FY 3/25 18
Slide 19: Business Performance
Business Performance (¥ bn.) FY 3/24 FY 3/25 Net sales Q1 Q2 Q3 Q4 Full year Q1 Q2 Films 39.0 39.1 39.3 39.1 156.5 42.1 40.7 Life Science 8.1 8.4 8.7 9.3 34.6 8.1 9.1 Environmental and Functional Materials 25.0 27.6 33.6 29.2 115.3 28.1 27.2 Functional Textiles and Trading 22.2 23.5 23.2 26.8 95.7 2
Slide 20: Topics (1): Films
Topics (1): Films Completion of new production facility for mold releasing film for MLCC - Place: Utsunomiya Plant - Investment amount: approximately ¥20.0 billion - Production capacity: approximately 20 thousand tons/year - Start of commercial production: scheduled in Spring of 2025 - Market: growt
Slide 21: Topics (2): Life Science
Topics (2): Life Science Launch of equipment for increased production of enzymes for biochemical diagnostic reagents. - Place: Tsusuga Biochemicals Plant (within Tsuruga Research and Production Center) - Investment amount: approximately ¥7.0 billion - Production capacity: approximately 1.5-fold incr
Slide 22: Topics (3): Environmental and Functional Materials
Topics (3): Environmental and Functional Materials High performance fibers for mooring cables for offshore floating wind power generation - “IZANAS” ultra-high-strength polyethylene fiber - Characteristics: High strength, high elastic modulus, light weight, high water resistant Participates in Japan
Slide 23: Topics (4): Integrated Report
Topics (4): Integrated Report Toyobo Group’s Integrated Report “TOYOBO REPORT 2024” released Main contents - CEO message - Long-term vision “Sustainable Vision 2030” and the “2025 Medium-Term Management Plan (FY 3/23 – FY 3/26)” - Value creation process, Toyobo’s strengths, Capital and business mode
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
Slide 25: ©️ TOYOBO CO., LTD. All rights reserved.
©️ TOYOBO CO., LTD. All rights reserved.