Kureha Corporation · TSE:4023
Kureha — Q3 FY2021 Earnings Presentation
28 slides from Kureha's earnings presentation, Feb 4, 2022
Slide 1: FY2021 3Q Results
FY2021 3Q Results February 4, 2022
Slide 2: Contents
1 Contents I. FY2021 3Q Results • FY2021 3Q Overview 3-5 • Segment Results 6-10 • Financial Position 11 II. FY2021 Full-Year Forecast (Updated) • FY2021 Financial Forecast 13 -17 III. Supplementary Materials • PVDF Business Updates 19 • PGA Business Updates 20 • Returning to Shareholders 21 • ESG In
Slide 3: I. FY2021 3Q Results
2 I. FY2021 3Q Results (Period April 1 – December 31, 2021)
Slide 4: FY2021 3Q Overview
3 FY2021 3Q Overview (in billions of yen, except per-share value) Vs. FY2020 3Q FY2020 FY2021 Change 3Q 3Q YOY • Revenue growth driven by Advanced 17.4 Materials, Specialty Chemicals and Revenue 105.7 123.1 (+16.5%) Specialty Plastics more than offsetting 3.3 slower sales in Construction and Other C
Slide 5: FY2021 3Q Overview
4 FY2021 3Q Overview (in billions of yen) Segment performance (vs. FY2020 3Q) Revenue Core operating profit FY20 3Q FY20 3Q 45.0 8.5 FY21 3Q FY21 3Q 35.3 31.2 32.7 6.5 20.6 4.2 17.6 3.6 14.9 13.7 2.5 9.3 8.5 1.9 1.9 2.2 0.7 0.5 Advanced Specialty Specialty Construction Other Advanced Specialty Speci
Slide 6: FY2021 3Q Overview
5 FY2021 3Q Overview (in billions of yen) FY2020 3Q AM SC SP CO OO Total Revenue 31.2 17.6 32.7 9.3 14.9 105.7 Core operating profit 1.9 1.9 6.5 0.7 3.6 14.6 Intersegment adjustment 0.0 Other income 0.5 Other expenses 0.6 Operating profit 14.6 Finance income 0.5 Finance costs 0.2 Profit before incom
Slide 7: Segment Results: Advanced Materials
6 Segment Results: Advanced Materials Vs. FY2020 3Q (billions of yen) FY2020 FY2021 Change Revenue Operating Profit 3Q 3Q % Advanced Materials Advanced plastics PPS: Revenue up, operating profit up Advanced plastics 20.1 30.9 +53% Increased production capacity and sales volume; an increase in equity
Slide 8: Segment Results: Specialty Chemicals
7 Segment Results: Specialty Chemicals Vs. FY2020 3Q (billions of yen) FY2020 FY2021 Change Revenue Operating Profit 3Q 3Q % Specialty Chemicals Agrochemicals & Pharmaceuticals Agrochemicals 5.6 6.3 +13% Revenue up, operating profit flat Sales volume growth for agrochemical Pharmaceuticals 3.1 3.4 +
Slide 9: Segment Results: Specialty Plastics
8 Segment Results: Specialty Plastics Vs. FY2020 3Q (billions of yen) FY2020 FY2021 Change Revenue Operating Profit 3Q 3Q % Specialty Plastics Home products & Fiber products Revenue up, operating profit up Home products 17.5 18.8 +8% Increased sales volumes of ‘NEW Krewrap’ Fiber products 2.9 3.5 +2
Slide 10: Segment Results: Construction
9 Segment Results: Construction Vs. FY2020 3Q (billions of yen) FY2020 FY2021 Change Revenue Operating Profit 3Q 3Q % Construction Construction Lower revenue and profit impacted by delays Construction 14.5 13.4 -8% in civil engineering projects, despite a higher number of construction projects in th
Slide 11: Segment Results: Other Operations
10 Segment Results: Other Operations Vs. FY2020 3Q (billions of yen) FY2020 FY2021 Change Revenue Operating Profit 3Q 3Q % Other Operations Environmental engineering Environmental Lower revenue and profit impacted by the engineering 10.9 9.9 -9% absence of post-typhoon waste treatment Logistics 5.8
Slide 12: Financial Position
11 Financial Position (billions of yen) Assets Liabilities and Equity Mar. 31 Dec. 31 Mar. 31 Dec. 31 Change Change 2021 2021 2021 2021 Cash and cash equivalents 17.8 22.2 4.3 Trade and other payables 19.2 24.4 5.2 Trade and other receivables 28.2 36.1 7.9 Interest-bearing debt 29.5 28.4 -1.1 Invent
Slide 13: II. FY2021 Full-Year Forecast
12 II. FY2021 Full-Year Forecast (Period April 1, 2021 – March 31, 2022)
Slide 14: FY2021 Financial Forecast
13 FY2021 Financial Forecast Notice: FY2021 financial forecast has been updated as of February 4, 2022. (in billions of yen, except per-share values) Vs. FY2021 Change FY2020 FY2021e YOY • Revenue expected to rise on higher sales 21.4 Revenue 144.6 166.0 (+14.8%) volumes of PVDF, PPS, PGA, home prod
Slide 15: FY2021 Financial Forecast
14 FY2021 Financial Forecast (in billions of yen) Segment performance (vs. FY2020) Revenue FY2020 Core operating profit FY2020 64.0 FY2021e 9.0 9.5 FY2021e 7.7 44.5 42.4 45.0 4.4 23.5 26.0 20.3 18.5 3.5 13.9 12.5 2.2 1.7 2.6 1.1 0.7 Advanced Specialty Specialty Construction Other Advanced Specialty
Slide 16: FY2021 Financial Forecast
15 FY2021 Financial Forecast (in billions of yen) FY2020 AM SC SP CO OO Total Revenue 44.5 23.5 42.4 13.9 20.3 144.6 Core operating profit 3.5 2.2 7.7 1.1 4.4 18.9 Intersegment adjustment 0.1 Other income 0.9 [FY2020] Other expenses 2.5 - Other expenses include an impairment loss (¥1.6bn) Operating
Slide 17: FY2021 Financial Forecast
16 FY2021 Financial Forecast (in billions of yen) Segment performance (vs. Previous forecast) Revenue FY2021e: Core operating profit FY2021e: Previous forecast Previous forecast 9.0 9.5 64.0 Current forecast Current forecast 60.0 8.5 6.5 44.0 45.0 26.0 25.0 2.6 18.5 12.5 1.7 0.7 Advanced Specialty S
Slide 18: FY2021 Financial Forecast
17 FY2021 Financial Forecast (in billions of yen) FY2021e Previous forecast AM SC SP CO OO Total Revenue 60.0 25.0 44.0 12.5 18.5 160.0 Core operating profit 6.5 1.7 8.5 0.7 2.6 20.0 Intersegment adjustment 0.0 Other income 0.8 [Previous forecast] Other expenses 1.3 Other expenses include an one-tim
Slide 19: III. Supplementary Materials
18 III. Supplementary Materials
Slide 20: PVDF Business Updates
19 PVDF Business Updates PVDF: Revenue (FY2016 – 2021e) 35 (¥ billion) • A roughly 40% market share held by Kureha PVDF in the automotive cathode binder segment; primary 30 customers including major Chinese and South Korean 25 lithium-ion battery manufacturers 20 • Full-capacity production continuin
Slide 21: PGA Business Updates
20 PGA Business Updates PGA: Quarterly Revenue Yearly Revenue (FY2016- 2021e) (¥ billions) (¥ billion) 1.5 4 1.0 2 0.5 0 0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021e • Shale oil and gas production activities are gradually returning in the post-pandemic economy • Kureha continues to focus on expandin
Slide 22: Returning to Shareholders
21 Returning to Shareholders Revised Forecast for FY2021 Dividend ➢ Kureha’s basic policy regarding dividend distribution is to pay a steady dividend to shareholders over a long period of time, while strengthening the Company’s financial structure to sustain long-term growth and future business deve
Slide 23: ESG Information
22 ESG Information Strengthening ESG management in line with the United Nations’ Sustainable Development Goals and toward carbon neutrality is one of our priority measures in the ‘Kureha’s Challenge 2022’ mid-term management plan (FY2021-2022). Our initiatives and progress in the areas of climate ch
Slide 24: (1) Climate Change Response
23 (1) Climate Change Response ◼ Responding to climate change aimed at the achievement of net zero is a top priority challenge in the Kureha Group as well. Kureha Group has established a basic policy for climate change response and is addressing this challenge across the entire Group. ◼ Target of GH
Slide 25: (2) Diversity in Core Human Resources
24 (2) Diversity in Core Human Resources Policy, Targets ◼ Ensuring Diversity in Promotion, etc. of Core Human Resources - Kureha employs and promotes diverse human resources who have different knowledge and experiences, based on their personal attributes, including abilities and achievements, to me
Slide 26: (3) The Board of Directors
25 (3)The Board of Directors Policy & Procedure: Appointment of Directors ◼ The Board of Directors makes decisions on the appointment of Directors and Vice Presidents appropriately based on the evaluation of factors such as the Company’s business performance while ensuring transparency and fairness
Slide 27: (3) The Board of Directors
26 (3)The Board of Directors Nomination Advisory Committee and Remuneration Advisory Committee ◼ With regard to matters concerning the appointment and remuneration of the Chairman of the Board of Directors, President & Chief Executive Officer, Representative Director, Directors, Vice Presidents with
Slide 28: Disclaimer
27 Disclaimer • This document is supplied to provide a deeper understanding of our company, and is not intended for soliciting investment or other actions. • This document has been prepared by Kureha Corporation based on the information currently available and acquired by the Company. Actual perform