Slide 1: Kureha Corporation Reports Interim Results April – September 2015
Kureha Corporation Reports Interim Results April – September 2015 Tokyo, Japan, November 2015 – Kureha Corporation (“Kureha”), a leading global supplier of specialty chemicals and plastics, has reported earnings for the first half of the year ending March 2016 (fiscal 2015). On a consolidated basis,
Slide 2: Consolidated interim results by division
Consolidated interim results by division (¥ million, except where stated) Division Sept. 2015 Sept. 2014 Change Advanced materials Sales 18,795 18,168 626 Operating income 113 -398 512 Specialty chemicals Sales 15,094 17,779 -2,685 Operating income 2,417 3,259 -842 Specialty plastics Sales 21,976 22
Slide 3: Divisional outlook and Specialty Chemicals
Outlook: Divisional sales for the full fiscal year are projected to be ¥43.5 billion, up 20% YoY from ¥36.2 billion in the previous period. Operating income is expected to rise sharply by 378% to ¥2.1 billion. The PGA business is expected to continue its strong growth trajectory, driven by high dema
Slide 4: Specialty Plastics and Construction
Specialty Plastics Major product areas – food packaging materials, household products In the first-half period, sales decreased 4% YoY to ¥22.0 billion from ¥23.0 billion, mainly due to a slowdown in sales of automated filling and clipping machines. Operating income was down 24% from ¥2.2 billion to
Slide 5: Capital Expenditure, Depreciation, R&D and Interest-bearing Debt
Capital Expenditure, Depreciation, R&D and Interest-bearing Debt Consolidated interim capital expenditure, depreciation, R&D and interest-bearing debt (¥ billion) Sept. 2015 Sept. 2014 March 2016 (forecasts) Capital expenditure 5.3 9.2 16.0 Depreciation 4.8 3.9 10.0 R&D 2.3 2.3 5.7 Interest-bearing
Slide 6: Full-year forecast and contact information
However, results will be impacted by the absence of one-time benefits associated with new business contracts in the pharmaceuticals business, increasing depreciation costs related to new PVDC and PVDF plants, and the effect of non-operating factors such as exchange rate adjustments and overall chall
Slide 7: Condensed interim balance sheets and income statement
Condensed interim balance sheets As of 30 September 2015 and 2014 (¥ million) Sept. 2015 Sept. 2014 Assets Current assets 74,432 75,125 Cash and cash equivalents 5,588 7,303 Fixed assets 172,961 160,559 Property, plant and equipment 123,054 117,365 Intangible assets 2,413 1,929 Investments and other
Slide 8: Fiscal 2015 Interim Results
Fiscal 2015 Interim Results (Period April 1 – September 30,2015) November 13, 2015
Slide 9: Contents
1 Contents 1. FY2015 Half-Year Results 2 • FY2015 1H Highlights 3 • Segment Performance 4-7 • Key Indicators 8 • Extraordinary Income/Losses 9 • Balance Sheets 10 • Cash Flow 11 2. FY2015 Full-Year Forecasts 12 • FY2015 Full-Year Outlook 13 • Segment Outlook 14-17 • Key Indicators 18 • Cash Flow 19
Slide 10: 1. FY2015 Half-Year Results
2 1. FY2015 Half-Year Results (April 1 – September 30, 2015)
Slide 11: FY2015 1H Highlights
3 FY2015 1H Highlights Sales contract 6%, Operating income down 13% YOY • Volume declines in pharmaceuticals, agrochemicals, packaging machinery and construction • Increased depreciation costs associated with PVDC and PVDF facilities • Continued PGA growth in shale oil/gas markets Unfavorable cu
Slide 12: Segment Performance: Advanced Materials
4 Segment Performance Advanced Materials In 100 million yen FY2015 1H FY2014 1H % Change Kureha Sales Carbon products 30 32 -8% Advanced plastics 115 96 20% Other 1 3 -65% Subsidiaries Sales Carbon products (China) 8 11 -25% Battery materials 33 31 8% Other 119 114 5% Consolidated adjustment -119 -1
Slide 13: Specialty Chemicals
5 Specialty Chemicals In 100 million yen FY2015 1H FY2014 1H % Change Kureha Sales Industrial chemicals 48 55 -11% Agrochemicals 36 52 -30% Pharmaceuticals 42 46 -8% Subsidiaries Sales 39 44 -11% Consolidated adjustment -15 -18 --- Kureha Group Sales Total 151 178 -15% Kureha Group Operating Income
Slide 14: Specialty Plastics
6 Specialty Plastics In 100 million yen FY2015 1H FY2014 1H % Change Kureha Sales Packaging materials 39 55 -30% Consumer products 91 91 0% Subsidiaries Sales Packaging materials (overseas) 62 61 3% Other 68 74 -9% Consolidated adjustment -40 -52 --- Kureha Group Sales Total 220 230 -4% Kureha Group
Slide 15: Construction and Other Operations
7 Construction In 100 million yen FY2015 1H FY2014 1H % Change Subsidiaries Sales Construction 98 120 -18% Consolidated adjustment -35 -47 --- Kureha Group Sales Total 63 74 -14% Kureha Group Operating Income Total 3 4 -14% Post-quake reconstruction projects increased, but private construction pro
Slide 16: Key Indicators
8 Key Indicators ( In 100 million yen) FY2015 1H FY2014 1H % Change Capital expenditure 53 92 -43% Depreciation 48 39 23% R&D expenses 23 23 -2% Interest-bearing debt 858 845 2% Net interest expense 1 0 --- ¥121.87/$1 ¥103.04/$1 Exchange rate --- ¥135.27/€1 ¥138.92/€1 Number of employees 4,140 4,159
Slide 17: Extraordinary Income/Losses
9 Extraordinary Income/Losses ( In 100 million yen) FY2015 1H FY2014 1H Change Gain on sales of investment securities 3.2 0.7 2.5 Extraordinary Compensation income 0.4 0.4 -0.1 income Gain on transfer of business -- -- -- Others 0.1 0.1 0.0 Total 3.6 1.2 2.4 Loss on sales and retirement of noncurren
Slide 18: Balance Sheets
10 Balance Sheets September 30 March 31 Change ( In 100 million yen) 2015 2015 Assets Cash and cash equivalents 56 78 -22 Accounts and notes receivable-trade 288 290 -2 Inventories 330 328 3 Other current assets 70 64 6 Property, plant and equipment 1,231 1,232 -1 Intangible assets 24 24 -0 Investme
Slide 19: Cash Flow
11 Cash Flow FY2015 1H FY2014 1H Pre-depreciation profit 99 99 Increase/decrease in assets and liabilities -14 -29 Cash flow from Payments of corporation tax -25 -25 operating activities Other-net -5 -4 Total 55 41 Cash flow from investing activities -56 -103 Cash flow from financing activities -21
Slide 20: 2. FY2015 Full-Year Forecasts
12 2. FY2015 Full-Year Forecasts (April 1, 2015 – March 31, 2016)
Slide 21: FY2015 Full-Year Outlook
13 FY2015 Full-Year Outlook In 100 million yen FY2016 FY2015 % Change Net Sales 1,550 1,502 3.2% Operating income 130 146 -10.7% Recurring income 125 154 -19.0% Net income 80 92 -13.0% ¥11 ¥12 Interim ¥5.5 Interim ¥5.5 Dividend per share (yen) Year-end ¥5.5 Year-end ¥5.5 Commemorative ¥1.0 Dividend
Slide 22: Segment Outlook: Advanced Materials
14 Segment Outlook Advanced Materials In 100 million yen FY2015e FY2014 % Change Kureha Sales Carbon products 60 60 0% Advanced plastics 266 202 32% Other 4 5 -25% Subsidiaries Sales Carbon products (China) 19 19 0% Battery materials 78 61 28% Other 288 241 19% Consolidated adjustment -280 -227 -- K
Slide 23: Segment Outlook: Specialty Chemicals
15 Specialty Chemicals In 100 million yen FY2015e FY2014 % Change Kureha Sales Industrial chemicals 98 106 -8% Agrochemicals 107 98 10% Pharmaceuticals 75 99 -24% Subsidiaries Sales 90 88 3% Consolidated adjustment -35 -35 -- Kureha Group Sales Total 335 355 -6% Kureha Group Operating Income Total 4
Slide 24: Segment Outlook: Specialty Plastics
16 Specialty Plastics In 100 million yen FY2015e FY2014 % Change Kureha Sales Packaging materials 92 118 -22% Consumer products 198 175 13% Subsidiaries Sales Packaging materials (overseas) 135 124 9% Other 150 148 1% Consolidated adjustment -105 -100 --- Kureha Group Sales Total 470 465 1% Kureha G
Slide 25: Segment Outlook: Construction and Other Operations
17 Construction In 100 million yen FY2015e FY2014 % Change Subsidiaries Sales Construction 210 257 -18% Consolidated adjustment -60 -89 --- Kureha Group Sales Total 150 167 -10% Kureha Group Operating Income Total 6 11 -45% Fewer construction projects, increased labor and materials costs Other Ope
Slide 26: Key Indicators
18 Key Indicators ( In 100 million yen) FY2015e FY2014 % Change Capital expenditure 160 176 -9% Depreciation 100 83 21% R&D expenses 57 50 15% Interest-bearing debt 897 866 4% Net interest expense -2 -0 --- (2nd half) ¥109.90/$1 Exchange rate ¥120/$1 --- ¥138.84/€1 ¥135/€1 Number of Employees 4,146
Slide 27: Cash Flow
19 Cash Flow FY2015e FY2014 Pre-depreciation profit 208 219 Increase/decrease in assets and liabilities -50 -63 Cash flow from Payments of corporation tax -28 -41 operating activities Other-net 13 11 Total 143 125 Cash flow from investing activities -154 -188 Cash flow from financing activities 10 5
Slide 28: 3. Consolidated Companies
20 3. Consolidated Companies
Slide 29: Sales and Assets
21 Sales and Assets FY2015 1H FY2014 1H Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Corporation 402 1,951 429 1,845 -27 106 Kureha Trading Group (2) 124 119 145 133 -21 -14 Kureha Corporation 146 -- 131 -- 15 -- Kureha Trading Group (2) 39 -- 52 -- -13 -- Kureh
Slide 30: Sales and Assets
22 Sales and Assets FY2015 1H FY2014 1H Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Nishiki Group (4) 80 97 94 107 -14 -10 Construc- Kureha Engineering Co. 18 28 26 29 -8 -1 tion Consolidation adjustments -35 -- -47 -- 12 -- Total 63 -- 74 -- -10 -- Kureha Ecol
Slide 31: 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