Kureha Corporation · TSE:4023
Kureha — H1 FY2017 Earnings Presentation
36 slides from Kureha's earnings presentation, Nov 8, 2017
Slide 1: Kureha Corporation Reports Interim Results April – September 2017 (IFRS)
Kureha Corporation Reports Interim Results April – September 2017 (IFRS) Tokyo, Japan, November 8, 2017 – Kureha Corporation (“Kureha”), a leading global supplier of specialty chemicals and plastics, has reported earnings for the first half of the year ending March 2018 (FY2017). On a consolidated b
Slide 2: Performance by Segment
Consolidated interim results by segment (Billions of yen) Segment Sept. 2017 Sept. 2016 Change (%) Advanced materials Revenue 19.8 14.7 35.1 Operating profit 1.4 0.6 144.9 Specialty chemicals Revenue 12.6 11.2 12.9 Operating profit 1.9 0.8 150.6 Specialty plastics Revenue 22.2 21.0 5.9 Operating pro
Slide 3: Specialty Chemicals and Specialty Plastics
Specialty Chemicals Major product areas – industrial chemicals, agrochemicals, pharmaceuticals In the first-half period, the Specialty Chemicals segment recorded revenue of 12.6 billion yen, an increase of 12.9%, and operating profit of 1.9 billion yen, up 150.6%. Higher sales volumes for agrochemic
Slide 4: Capex, Depreciation, R&D and Debt
Construction / Other Operations Major product areas – construction and engineering, environmental engineering, logistics, trading related businesses Construction: Profit down on slower engineering performance Kureha’s construction businesses recorded revenue growth on the back of continued post- ear
Slide 5: Outlook for the Full Fiscal Year
Interest-bearing debt decreased from 77.8 billion yen to 56.0 billion yen in the first half. This notable decrease is primarily due to the conversion of 15.0 billion yen in convertible bonds due in 2018. For the full fiscal year, interest-bearing debt is projected to reach 54.1 billion yen. Outlook
Slide 6: Condensed balance sheets and income statement
Condensed balance sheets As of 30 September and 31 March, 2017 (Millions of yen) Sept. 2017 Mar. 2017 Assets Current assets 74,978 75,272 Cash and cash equivalents 5,829 6,222 Noncurrent assets 164,124 159,634 Property, plant and equipment 115,584 115,911 Intangible assets 1,324 1,395 Investments an
Slide 7: Fiscal 2017 Interim Results
Fiscal 2017 Interim Results (Period April 1 – September 30, 2017) November 8, 2017
Slide 8: Contents
1 Contents 1. FY2017 Half-Year Results 2. FY2017 Full-Year Outlook • FY2017 1H Highlights 3-7 • FY2017 Full-Year Forecast 15-19 • Segment Performance • Segment Outlook Advanced Materials 8 Advanced Materials 20 Specialty Chemicals 9 Specialty Chemicals 21 Specialty Plastics 10 Specialty Plastics 22
Slide 9: 1. FY2017 Half-Year Results
2 1. FY2017 Half-Year Results (April 1, 2017 – September 30, 2017)
Slide 10: FY2017 1H Highlights
3 FY2017 1H Highlights Note: Figures indicated in blue are initial (in billions of yen, except where stated otherwise) projections announced in May 2017 FY2016 FY2017 Change (%) 1H 1H 69.5 9.3 (15.4%) FY2017 1H vs. FY2016 1H Revenue 60.2 66.0 3.5 (5.3%) • Revenue increased on volume 7.2 2.7 (60.7%)
Slide 11: FY2017 1H Highlights: Segment Variance vs. FY2016 1H
4 FY2017 1H Highlights Segment Variance: FY2017 1H vs. FY2016 1H (billions of yen) Operating Revenue Operating profit …FY16 1H …FY16 1H …FY17 1H Profit 3.3 22.2 …FY17 1H 19.8 21.0 2.3 14.7 12.6 1.9 11.2 1.4 7.2 7.5 7.6 5.9 0.8 0.6 0.6 0.4 0.2 0.4 Advanced Specialty Specialty Other Advanced Specialty
Slide 12: FY2017 1H Highlights
5 FY2017 1H Highlights (billions of yen) FY2016 1H Advanced Specialty Specialty Con- Other Segment Adjustment Total Materials Chemicals Plastics struction Operations Total Revenue 14.7 11.2 21.0 5.9 7.5 60.2 ------ 60.2 Elimination 0.0 ------ Other income 0.2 ------ Other expenses 0.1 ------ Operati
Slide 13: FY2017 1H Highlights: vs. Initial Projection
6 FY2017 1H Highlights (vs. Initial Projection) Segment Variance: FY2017 1H vs. Initial projection (billions of yen) Revenue Operating …FY17 1H Projection …FY17 1H Projection …FY17 1H Profit 3.3 …FY17 1H 19.8 21.0 22.2 18.0 2.2 1.9 12.0 12.6 1.4 8.0 7.6 1.1 1.2 7.0 7.2 0.6 0.4 0.2 0.2 Advanced Speci
Slide 14: FY2017 1H Highlights: vs. Initial Projection
7 FY2017 1H Highlights (vs. Initial Projection) (billions of yen) FY2017 1H Advanced Specialty Specialty Con- Other Segment Initial Projection Materials Chemicals Plastics struction Operations Total Adjustment Total Revenue 18.0 12.0 21.0 7.0 8.0 66.0 ------ 66.0 Elimination 0.1 ------ Other income
Slide 15: Segment Performance: Advanced Materials
8 Segment Performance: Advanced Materials (billions of yen) FY2016 FY2017 Change FY2017 1H vs. FY2016 1H 1H 1H % Revenue Operating Profit Advanced Materials Advanced plastics 9.1 11.6 27% • Advanced plastics revenue and profit Carbon products 2.2 2.6 19% increased on higher volumes for PVDF (LiB bin
Slide 16: Segment Performance: Specialty Chemicals
9 Segment Performance: Specialty Chemicals (billions of yen) FY2016 FY2017 Change FY2017 1H vs. FY2016 1H 1H 1H % Revenue Operating Profit Specialty Chemicals Agrochemicals 1.9 4.0 115% • A sharp rise in Agrochemicals Pharmaceuticals 3.2 2.2 -32% revenue and profit due to higher fungicide volume Ind
Slide 17: Segment Performance: Specialty Plastics
10 Segment Performance: Specialty Plastics (billions of yen) FY2016 FY2017 Change FY2017 1H vs. FY2016 1H 1H 1H % Revenue Operating Profit Specialty Plastics Home products 10.1 10.6 5% • Home products grew on steady Packaging materials 3.6 3.2 -11% volume gains for NEW Krewrap Revenue: Kureha Co. 13
Slide 18: Segment Performance: Construction & Other Operations
11 Segment Performance: Construction & Other Operations (billions of yen) FY2016 FY2017 Change FY2017 1H vs. FY2016 1H 1H 1H % Construction Revenue Operating Profit Construction 9.6 10.4 8% • Construction profit even with prior-year Elimination -3.7 -3.2 -- period, despite higher sales in public and
Slide 19: Balance Sheet
12 Balance Sheet (billions of yen) Assets Liabilities and Equity Mar. 31 Sept. 30 Mar. 31 Sept. 30 Change Change 2017 2017 2017 2017 Cash and cash equivalents 6.2 5.8 -0.4 Trade and other payables 20.4 18.5 -1.9 Trade and other receivables 29.4 30.4 1.0 Interest-bearing debt 71.0 56.0 -15.0 * Invent
Slide 20: Cash Flow
13 Cash Flow (billions of yen) FY2016 FY2017 Change 1H 1H Profit before income tax 3.6 7.2 3.6 Depreciation 5.1 4.9 -0.2 Other -0.6 -1.3 -0.7 Cash flow from operating activities 8.0 10.8 2.7 Cash flow from investing activities -5.6 -5.9 -0.2 Cash flow from financing activities -3.1 -5.3 -2.1 Effect
Slide 21: 2. FY2017 Full-Year Outlook
14 2. FY2017 Full-Year Outlook (April 1, 2017 – March 31, 2018)
Slide 22: FY2017 Full-Year Forecast (Revised)
15 FY2017 Full-Year Forecast (Revised) Note: Figures indicated in blue are initial (billions of yen, except where stated otherwise) projections announced in May 2017 Change FY2016 FY2017e YOY (%) 145.0 12.7 (9.6%) FY2017e vs. FY2016 Revenue 132.3 142.0 3.0 (2.1%) • Revenue is expected to increase on
Slide 23: FY2017 Full-Year Forecast: Segment Variance
16 FY2017 Full-Year Forecast Segment Variance: FY2017 projection (revised) vs. FY2016 (billions of yen) …FY16 …FY16 Revenue Operating …FY17 projection (revised) …FY17 projection (revised) Profit 45.0 5.5 41.5 42.8 5.0 33.4 25.9 27.0 3.1 2.3 2.5 16.5 13.9 15.0 16.3 1.7 1.5 1.0 0.6 0.1 Advanced Specia
Slide 24: FY2017 Full-Year Forecast
17 FY2017 Full-Year Forecast (billions of yen) FY2016 Advanced Specialty Specialty Con- Other Segment Adjustment Total Materials Chemicals Plastics struction Operations Total Revenue 33.4 25.9 42.8 13.9 16.3 132.3 ------ 132.3 Elimination 0.1 ------ Other income ¥1bn subsidy income 1.4 ------ Other
Slide 25: FY2017 Full-Year Forecast: Revised vs. Initial
18 FY2017 Full-Year Forecast (Revised vs. Initial Projection) Segment Variance: FY2017 Projection Revised vs. Initial (billions of yen) Revenue …FY17 Projection (initial) Operating …FY17 Projection (initial) …FY17 Projection (revised) …FY17 Projection (revised) Profit 45.0 5.5 41.5 43.0 41.0 4.1 26.
Slide 26: FY2017 Full-Year Forecast: Revised vs. Initial
19 FY2017 Full-Year Forecast (Revised vs. Initial Projection) (billions of yen) FY2017e Initial Advanced Specialty Specialty Con- Other Segment Adjustment Total Materials Chemicals Plastics struction Operations Total Revenue 41.0 26.5 43.0 14.5 17.0 142.0 ------ 142.0 Elimination 0.1 ------ Other in
Slide 27: Segment Outlook: Advanced Materials
20 Segment Outlook: Advanced Materials (billions of yen) FY2016 FY2017e Change FY2017e vs. FY2016 Revised % Revenue Operating Profit Advanced Materials Advanced plastics 19.7 25.5 29% • Advanced plastics expected to Carbon products 4.1 4.5 9% improve on higher volumes for PVDF (LiB binder), PPS (for
Slide 28: Segment Outlook: Specialty Chemicals
21 Segment Outlook: Specialty Chemicals (billions of yen) FY2016 FY2017e Change FY2017e vs. FY2016 Revised % Revenue Operating Profit Specialty Chemicals Agrochemicals 7.2 9.0 25% • Agrochemicals expected to improve Pharmaceuticals 5.6 4.3 -23% on volume growth after customer destocking Industrial c
Slide 29: Segment Outlook: Specialty Plastics
22 Segment Outlook: Specialty Plastics (billions of yen) FY2016 FY2017e Change FY2017e vs. FY2016 Revised % Revenue Operating Profit Specialty Plastics Home products 19.5 20.9 7% • Home products to improve on volume Packaging materials 7.0 6.1 -12% gains for NEW Krewrap (plastic wrap) Revenue: Kureh
Slide 30: Segment Outlook: Construction & Other Operations
23 Segment Outlook: Construction & Other Operations (billions of yen) FY2017e vs. FY2016 FY2016 FY2017e Change Revised % Revenue Operating Profit Construction Construction 21.2 22.0 4% • Rise in labor and raw materials costs likely to push down profit, despite higher Elimination -7.2 -7.0 -- volumes
Slide 31: Key Indicators
24 Key Indicators (billions of yen) FY2016 FY2017 Change 2H Full-year YOY(%) 1H 2H Full-year 1H Estimate Estimate Capital expenditure 4.8 5.5 10.3 4.0 8.5 12.5 2.2 (21%) Depreciation 5.1 5.1 10.2 4.9 5.1 10.0 -0.2 (-2%) R&D expenses 2.2 2.5 4.7 2.3 3.0 5.3 0.6 (13%) Interest-bearing debt 77.8 71.0 7
Slide 32: Cash Flow
25 Cash Flow (billions of yen) Change FY2016 FY2017e YOY Profit before income tax 9.0 12.0 3.0 Depreciation 10.2 10.0 -0.2 Other -6.8 -5.3 1.5 Cash flow from operating activities 12.4 16.7 4.4 Cash flow from investing activities -1.1 -12.6 -11.6 Cash flow from financing activities -11.7 -4.2 7.6 Eff
Slide 33: 3. Consolidated Companies
26 3. Consolidated Companies
Slide 34: Revenues & Assets
27 Revenues & Assets (billions of yen) FY2016 1H FY2017 1H Change Revenue Total assets Revenue Total assets Revenue Total assets Kureha Corporation 28.6 188.3 32.3 191.1 3.8 2.9 Kureha Trading Group (2) 7.7 12.2 8.6 13.9 0.9 1.7 Kureha Corporation 11.2 -- 14.1 -- 2.9 -- Kureha Trading Group (2) 4.1
Slide 35: Revenues & Assets
28 Revenues & Assets (billions of yen) FY2016 1H FY2017 1H Change Revenue Total assets Revenue Total assets Revenue Total assets Kureha Nishiki Group (4) 7.8 9.7 9.3 10.9 1.5 1.2 Construc- Kureha Engineering Co. 1.9 2.6 1.0 2.3 -0.8 -0.3 tion Consolidation adjustments -3.7 -- -3.1 -- 0.6 -- Total 5.
Slide 36: Disclaimer
Disclaimer • 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. • These materials have been prepared by our company based on the information available at this point in time. However, actual perform