Slide 1: Kureha Corporation Reports Interim Results
Kureha Corporation Reports Interim Results Period April – September 2014 Tokyo, Japan, November 2014 – Kureha Corporation (“Kureha”), a leading global supplier of specialty chemicals and plastics, has reported earnings for the half-year period ended September 30, 2014. On a consolidated basis, sales
Slide 2: Update on the Grow Globally II medium-term business plan
Update on the Grow Globally II medium-term business plan Kureha remains focused on pursuing the strategy set out in its 2012-2015 medium- term business plan, Grow Globally II, including prioritizing growth areas such as lithium-ion batteries and PGA (polyglycolic acid), a unique polymer that Kureha
Slide 3: Performance by Division
Performance by Division Advanced Materials Division Major product areas: advanced plastics (PPS, PVDF, PGA), carbon materials For the half-year period, the Advanced Materials Division saw increases in both sales and income. Sales increased by 14% YoY to ¥18.2 billion from ¥16.0 billion. The operatin
Slide 4: Specialty Chemicals and Specialty Plastics Divisions
agent, both saw decreased sales and income due to the effect of government- mandated drug price revisions. Outlook: Divisional sales for the full fiscal year are projected to grow from ¥36.6 billion to ¥38.5 billion, up 5%. Operating income will also improve, rising from ¥7.3 billion to ¥8.7 billion
Slide 5: Construction Related / Other Operations
Construction Related / Other Operations Major product areas – construction, environment, logistics, trading related businesses Rising sales and income in construction related businesses The first half of the fiscal year saw increases in both sales and income on the back of an increase in official re
Slide 6: Outlook for the full year
Outlook for the full year (¥ million, except where stated) March 2015 March 2014 Change (%) (Forecasts) Sales 155,000 148,124 4.6 Operating income 13,500 11,902 13.4 Recurring income 13,000 12,207 6.5 Net income 8,000 7,365 8.6 Earnings per share (EPS) (¥) 46.57 42.87 8.6 (¥ million, except where st
Slide 7: Condensed interim balance sheets
Condensed interim balance sheets As of 30 September 2014 and 2013 ¥ million Sept. 2014 Sept. 2013 Assets Current assets 75,125 67,789 Cash and cash equivalents 7,303 6,824 Fixed assets 160,559 145,013 Property, plant and equipment 117,365 105,270 Intangible assets 1,929 1,606 Investments and other a
Slide 8: Fiscal 2014 Interim Results
Fiscal 2014 Interim Results (Period April 1 – September 30, 2014) November 14, 2014
Slide 9: Contents
1 Contents 1. FY2014 Half-Year Results 2 • FH2014 1H Highlights 3 • Segment Performance 4-7 • Analysis of Recurring Income 8 • Breakdown of Extraordinary Income/Losses 9 • Key Indicators 10 • Balance Sheets 11 • Cash Flow 12 2. FY2014 Full-Year Forecasts 13 • FY2014 Full-Year Outlook 14 • Segment Ou
Slide 10: 1. FY2014 Half-Year Results
2 1. FY2014 Half-Year Results (April 1 – September 30, 2014)
Slide 11: FY2014 1H Highlights
3 FY2014 1H Highlights Operating income increased 18% vs. FY2013 1H Strong performance in advanced plastics, agrochemicals, packaging machinery and construction businesses Negative effect of national drug price revisions on pharmaceuticals Net income up 25% Recorded less losses on retireme
Slide 12: Segment Performance: Advanced Materials
4 Segment Performance Advanced Materials In 100 million yen FY2014 1H FY2013 1H % Change Kureha Sales Carbon products 32 25 30% Advanced plastics 96 81 19% Other 3 1 359% Subsidiaries Sales Carbon products (China) 11 5 143% Battery materials 31 25 25% Other 114 100 14% Consolidated adjustment -105 -
Slide 13: Specialty Chemicals
5 Specialty Chemicals In 100 million yen FY2014 1H FY2013 1H % Change Kureha Sales Industrial chemicals 55 49 12% Agrochemicals 52 48 8% Pharmaceuticals 46 50 -8% Subsidiaries Sales 44 43 3% Consolidated adjustment -18 -16 --- Kureha Group Sales Total 178 173 3% Kureha Group Operating Income Total 3
Slide 14: Specialty Plastics
6 Specialty Plastics In 100 million yen FY2014 1H FY2013 1H % Change Kureha Sales Packaging materials 55 43 28% Consumer products 91 92 -1% Subsidiaries Sales Packaging materials (overseas) 61 55 11% Other 74 58 28% Consolidated adjustment -52 -43 --- Kureha Group Sales Total 230 205 12% Kureha Grou
Slide 15: Construction and Other Operations
7 Construction In 100 million yen FY2014 1H FY2013 1H % Change Subsidiaries Sales Construction 120 97 24% Consolidated adjustment -47 -32 --- Kureha Group Sales Total 74 65 13% Kureha Group Operating Income Total 4 1 189% Increased construction projects related to post-earthquake reconstruction Ot
Slide 16: Analysis of Recurring Income
8 Analysis of Recurring Income Recurring Income In 100 million yen FY2014 1H FY2013 1H Change Kureha Corporation 56.2 49.2 7.0 Consolidated subsidiaries 13.4 9.0 4.4 Equity-method affiliates 1.0 1.9 - 0.9 Consolidated adjustments - 10.2 - 7.5 - 2.7 Kureha Group recurring income total 60.4 52.6 7.8 R
Slide 17: Extraordinary Income/Losses
9 Extraordinary Income/Losses ( In 100 million yen) FY2014 1H FY2013 1H Change Gain on sales of investment securities 0.7 1.6 -0.9 Extraordinary Compensation income 0.4 0.7 -0.3 income Subsidy income -- 0.9 -0.9 Others 0.1 -- 0.1 Total 1.2 3.3 -2.1 Loss on sales and retirement of noncurrent assets 1
Slide 18: Key Indicators
10 Key Indicators ( In 100 million yen) FY2014 1H FY2013 1H % Change Capital expenditure 92 65 41% Depreciation 39 45 -14% R&D expenses 23 21 9% Interest-bearing debt 845 739 14% Net interest expense 0 -0 --- ¥103.04/$1 ¥98.85/$1 Exchange rate --- ¥138.92/€1 ¥130.00/€1 # Employees 4,159 4,101 1%
Slide 19: Balance Sheets
11 Balance Sheets September 30 March 31 Change ( In 100 million yen) 2014 2014 Assets Cash and cash equivalents 73 87 -14 Accounts and notes receivable-trade 310 304 5 Inventories 294 281 13 Other current assets 75 62 13 Property, plant and equipment 1,174 1,117 57 Intangible assets 19 20 -1 Investm
Slide 20: Cash Flow
12 Cash Flow FY2014 1H FY2013 1H Change Pre-depreciation profit 99 96 3 Increase/decrease in assets and liabilities - 29 - 32 3 Cash flow from Payments of corporation tax - 25 - 20 -5 operating activities Other-net -4 -4 1 Total 41 39 2 Cash flow from investing activities - 103 - 101 -2 Cash flow fr
Slide 21: 2. FY2014 Full-Year Forecasts
13 2. FY2014 Full-Year Forecasts (April 1, 2014 – March 31, 2015)
Slide 22: FY2014 Full-Year Outlook
14 FY2014 Full-Year Outlook In 100 million yen FY2014e FY2013 % Change Net Sales 1,550 1,481 4.6% Operating income 135 119 13.4% Recurring income 130 122 6.5% Net income 80 74 8.6% ¥11 ¥11 Dividend per share (yen) Interim ¥5.5 Interim ¥5 Year-end ¥5.5 Year-end ¥6 Dividend payment ratio 23.6% 25.7%
Slide 23: Segment Outlook: Advanced Materials
15 Segment Outlook Advanced Materials In 100 million yen FY2014e FY2013 % Change Kureha Sales Carbon products 63 52 21% Advanced plastics 186 171 9% Other 6 1 500% Subsidiaries Sales Carbon products (China) 23 9 154% Battery materials 63 56 12% Other 249 224 11% Consolidated adjustment -230 -184 --
Slide 24: Segment Outlook: Specialty Chemicals
16 Specialty Chemicals In 100 million yen FY2014e FY2013 % Change Kureha Sales Industrial chemicals 106 98 8% Agrochemicals 118 118 0% Pharmaceuticals 106 95 12% Subsidiaries Sales 89 88 1% Consolidated adjustment -34 -32 --- Kureha Group Sales Total 385 366 5% Kureha Group Operating Income Total 87
Slide 25: Segment Outlook: Specialty Plastics
17 Specialty Plastics In 100 million yen FY2014e FY2013 % Change Kureha Sales Packaging materials 120 98 22% Consumer products 185 191 -3% Subsidiaries Sales Packaging materials (overseas) 142 127 12% Other 138 130 6% Consolidated adjustment -100 -94 --- Kureha Group Sales Total 485 453 7% Kureha Gr
Slide 26: Segment Outlook: Construction and Other Operations
18 Construction In 100 million yen FY2014e FY2013 % Change Subsidiaries Sales Construction 230 250 -8% Consolidated adjustment -75 -78 --- Kureha Group Sales Total 155 172 -10% Kureha Group Operating Income Total 5 8 -38% Fewer orders for plant construction, materials and labor costs likely to inc
Slide 27: Key Indicators
19 Key Indicators ( In 100 million yen) FY2014e FY2013 % Change Capital expenditure 213 165 29% Depreciation 86 91 -5% R&D expenses 53 46 15% Interest-bearing debt 862 772 12% Net interest expense -2 -1 --- (Q3-4) ¥105/$1 ¥100.29/$1 Exchange rate --- ¥135/€1 ¥134.44/€1 # Employees 4,180 4,080 2%
Slide 28: Cash Flow
20 Cash Flow FY2014e FY2013 Change Pre-depreciation profit 198 199 -1 Increase/decrease in assets and liabilities - 36 - 38 2 Cash flow from Payments of corporation tax - 32 - 30 -2 operating activities Other-net 16 8 8 Total 146 141 5 Cash flow from investing activities - 236 - 204 - 32 Cash flow f
Slide 29: 3. Consolidated Companies
21 3. Consolidated Companies
Slide 30: Sales and Assets
22 Sales and Assets FY2014 1H FY2013 1H Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Corporation 429 1,845 388 1,684 42 161 Kureha Trading Group (2)* 145 133 141 132 4 1 Kureha Corporation 131 -- 107 -- 25 -- Kureha Trading Group (2)* 52 -- 47 -- 5 -- Kureha Bat
Slide 31: Sales and Assets
23 Sales and Assets FY2014 1H FY2013 1H Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Nishiki Group (4)* 94 107 71 86 23 21 Construc- Kureha Engineering Co. 26 29 26 35 0 -6 tion Consolidation adjustments - 47 -- - 32 -- - 15 -- Total 74 -- 65 -- 9 -- Kureha Ecol
Slide 32: Disclaimer
Disclaimer 1. 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 2. These materials were prepared by our company based on the information available at this point in time, however actual performance