Kureha Corporation · TSE:4023
Kureha — Q3 FY2018 Earnings Presentation
18 slides from Kureha's earnings presentation, Feb 7, 2019
Slide 1: FY2018 3Q Results
FY2018 3Q Results February 7, 2019
Slide 2: FY2018 3Q Overview
1 FY2018 3Q Overview (in billions of yen, except where stated otherwise) FY2018 3Q vs. FY2017 3Q FY2017 3Q FY2018 3Q Change (%) • Revenue growth driven primarily by Advanced Materials, partially Revenue 110.2 110.8 0.6 (0.5%) offset by a volume decrease in Construction Operating profit 12.5 13.9 1.4
Slide 3: FY2018 3Q Overview: Segment Performance
2 FY2018 3Q Overview FY2018 3Q Segment Performance (vs. FY2017 3Q) (billions of yen) Revenue Operating 6.0 5.9 34.3 35.1 35.3 …FY2017 3Q Profit …FY2017 3Q …FY2018 3Q …FY2018 3Q 30.8 3.6 19.6 20.4 3.1 2.7 12.3 12.4 12.9 1.9 1.4 1.4 7.8 0.6 0.3 Advanced Specialty Specialty Other Advanced Specialty Spe
Slide 4: FY2018 3Q Overview
3 FY2018 3Q Overview (billions of yen) Advanced Specialty Specialty Con- Other Segment FY2017 3Q Materials Chemicals Plastics struction Operations Total Adjustment Total Revenue 30.8 19.6 35.1 12.3 12.4 110.2 ------ 110.2 Elimination 0.2 ------ Other income 0.2 ------ Other expenses *Environment-rel
Slide 5: Segment Performance: Advanced Materials
4 Segment Performance: Advanced Materials (billions of yen) FY2017 FY2018 Change FY2018 3Q vs. FY2017 3Q 3Q 3Q % Revenue Operating Profit Advanced Materials Advanced plastics 17.9 20.1 12% Advanced plastics: Carbon products 3.7 4.0 6% Operating profit increased due to higher sales volumes of PVDF (L
Slide 6: Segment Performance: Specialty Chemicals
5 Segment Performance: Specialty Chemicals (billions of yen) FY2017 FY2018 Change FY2018 3Q vs. FY2017 3Q 3Q 3Q % Revenue Operating Profit Specialty Chemicals Agrochemicals 6.6 6.4 -3% Agrochemicals Pharmaceuticals 3.4 3.6 6% Operating profit declined due to lower fungicides volumes Industrial chemi
Slide 7: Segment Performance: Specialty Plastics
6 Segment Performance: Specialty Plastics (billions of yen) FY2017 FY2018 Change FY2018 3Q vs. FY2017 3Q 3Q 3Q % Revenue Operating Profit Specialty Plastics Home products 16.7 16.9 1% Home products Packaging materials 4.9 4.7 -4% Operating profit decreased on higher Revenue: Kureha Co. 21.6 21.7 0%
Slide 8: Segment Performance: Construction & Other Operations
7 Segment Performance: Construction & Other Operations (billions of yen) FY2017 FY2018 Change FY2018 3Q vs. FY2017 3Q 3Q 3Q % Construction Revenue Operating Profit Construction 17.2 13.0 -24% Construction Elimination -4.9 -5.2 -- Operating profit declined due to fewer construction projects in privat
Slide 9: Financial Position
8 Financial Position (billions of yen) Assets Liabilities and Equity Mar.31 Dec.31 Mar.31 Dec.31 Change Change 2018 2018 2018 2018 Cash and cash equivalents 6.5 7.8 1.3 Trade and other payables 21.5 21.0 -0.5 Trade and other receivables 32.7 30.6 -2.0 Interest-bearing debt 48.1 47.8 -0.3 Inventories
Slide 10: FY2018 Full-Year Forecast
9 FY2018 Full-Year Forecast (billions of yen, except for dividends) FY2018 Change FY2017 FY2018e Initial mid- FY2018e vs. FY2017 YOY (%) term plan • Revenue to increase due to Revenue 147.3 150.0 2.7 160.0 volume growth mainly in Advanced (1.8%) Materials Operating profit 13.0 15.5 * 2.5 14.0 • High
Slide 11: FY2018 Full-Year Forecast
10 FY2018 Full-Year Forecast Segment Performance: FY2018e vs. FY2017 (billions of yen) Revenue Operating …FY2017 Profit …FY2017 47.5 45.4 45.5 …FY2018e 6.9 6.5 …FY2018e 41.6 26.2 27.5 3.9 3.4 3.2 17.4 16.8 17.0 12.5 1.7 1.8 1.8 1.0 0.5 Advanced Specialty Specialty Other Advanced Specialty Specialty
Slide 12: FY2018 Full-Year Forecast
11 FY2018 Full-Year Forecast (billions of yen) FY2017 Advanced Specialty Specialty Con- Other Segment Adjustment Total Materials Chemicals Plastics struction Operations Total Revenue 41.6 26.2 45.4 17.4 16.8 147.3 ------ 147.3 Elimination 0.2 ------ Other income *Subsidy income: ¥0.3bn 0.5 ------ Ot
Slide 13: FY2018 Full-Year Forecast
12 FY2018 Full-Year Forecast FY2018 Forecast: Present (2/7) vs. Previous (End 2Q) (billions of yen) Revenue Operating 47.0 47.5 46.0 45.5 …Previous forecast Profit 6.2 6.5 …Previous forecast …Present forecast …Present forecast 27.5 3.9 2.9 3.2 16.5 17.0 13.0 12.5 1.7 1.8 0.5 Advanced Specialty Speci
Slide 14: FY2018 Full-Year Forecast
13 FY2018 Full-Year Forecast (billions of yen) Previous Forecast Advanced Specialty Specialty Con- Other Segment (at end 2Q) Adjustment Total Materials Chemicals Plastics struction Operations Total Revenue 47.0 27.5 46.0 13.0 16.5 150.0 ------ 150.0 Elimination 0.0 ------ Other income 0.2 ------ Oth
Slide 15: Supplemental Information
Supplemental Information • Update on PGA business development • Iwaki Factory Capacity Enhancement
Slide 16: Update on PGA Business Development (PGA Frac Plugs for Shale Oil & Gas Drilling)
Update on PGA Business Development 14 (PGA Frac Plugs for Shale Oil & Gas Drilling) Application of PGA frac plugs is expanding to full-bore use in more oilfields… (Before) Non-degradable frac plugs are used for the fracturing process of horizontal well The length of a horizontal well is limited due
Slide 17: Iwaki Factory Capacity Enhancement
15 Iwaki Factory Capacity Enhancement Polyvinylidene fluoride(PVDF) Electrification of vehicles (EV, PHEV, HEV) PVDF demand growing for LiB binder New PVDF plant in Iwaki Factory (Japan) Commercial production begins at a new Iwaki plant (2000tpa, capex ¥4.7bn) in January 2019 Kureha’s total PVDF
Slide 18: 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