Unicharm Corporation · TSE:8113
Unicharm — FY2018 Earnings Presentation
29 slides from Unicharm's earnings presentation, Feb 14, 2019
Slide 1: Unicharm Presentation Materials for Investor Meeting
Fiscal Year Ended December 31, 2018 Unicharm Presentation Materials for Investor Meeting February 14, 2018 Takahisa Takahara President and CEO Unicharm Corporation Projections stated in these materials include those based on the Company’s currently obtained assumptions, forecasts and plans regarding
Slide 2: Financial Performance Summary: Fiscal Year Ended December 31, 2018
Financial Performance Summary: Fiscal Year Ended December 31, 2018 ◆ Document notations BC： Baby Care Business FC： Feminine Care Business HC： Health Care Business C&F：Clean & Fresh Business PC： Pet Care Business Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights res
Slide 3: Financial Performance Summary
Fiscal Period Year Ended Dec. 31, 2018 Financial Performance Summary Consolidated results (New record high established) Sales of 688.3 billion JPY (7.3% increase), core operating profits 95.1 billion JPY (9.5% increase), COPM13.8% (improved 0.3P). 10th Midterm Group Management Plan (CAGR7%, co
Slide 4: 7.3% sales increase, 9.5% core operating profit increase
7.3% sales increase, 9.5% core operating profit increase (both record highs) Sales and profit both reached earnings forecast Consolidated account highlights （Millions of yen) FY Ended FY Ended (forecast) Difference Achievement Dec. 31. Dec. 31. Difference FY Ened Dec. (%) rate 2017 2018 31. 2018 N
Slide 5: Core operating income fluctuation
Through quantity sold increasing by effect of aggressive marketing investment, reduction of sales promotion expenses and positive effect of product mix improvement, absorbed the rising of raw material prices. Core operating income margin increased by 8.3 billion JPY Core operating income fluctuati
Slide 6: Geographical segment information
In Japan, HC, BC, PC and C&F drive performance In Asia, India became profitable stable and profitability improved in Indonesia In Others, Brazil favorably progressed to contribute. Geographical segment information (Millions of yen) ※1 FY Ended FY Ended (Ref.) Difference Dec. 31, Dec. 31, Differenc
Slide 7: Operating profit ratio by location
In spite of rising raw material prices, in Japan, improved profitability with high value-added products and expanding exports In Asia, improved profitability in main countries Operating profit ratio by location 25.0% ※1 Japan Asia Others Consolidation 21.7% 20.1% 20.0% 16.7% 15.5% 15.0% 13.6% 13.8
Slide 8: Business Segment Information
In Personal Care, China FC, Japan HC, Vietnam, and etc drove profitability In Pet Care, expanded by Japanese technology in Asia market. Business Segment Information （ Millions of yen） FY Ended FY Ended Difference Difference Dec. 31, 2017 Dec. 31, 2018 (%) Net sales 555,388 599,290 +43,902 +7.9% Pe
Slide 9: Overseas sales composition ratio 59.8%
Overseas sales composition ratio 59.8% （60.2％ excluding exchange effects） Domestic / overseas sales trend (Billions of yen) 900 ※2 70% 64.4% 63.2％ 800 61.4% 62.0％ 57.7% 57.7% 60% 700 52.6% 59.8% 58.9% 49.3% 600 46.2% 50% 42.8% 42.9% 42.9% 44.0% 500 38.2% 40% 400 30% 300 20% 200 100 10% 0 0% 12/12
Slide 10: Rate fluctuations by currency
Impact of exchange fluctuations Approx. 73 billion yen decrease in sales Approx. 1 billion yen decrease in core operating profit Rate fluctuations by currency Currency Exchange rate for 2017 Exchange rate for 2018 Rate change China (CNY) 16.63 16.72 +0.5% Indonesia (IDR) 0.0084 0.0078 -7.1% Thaila
Slide 11: Summary of Business Plan; Fiscal Year Ending December 31, 2019
Summary of Business Plan; Fiscal Year Ending December 31, 2018 Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 12: FY2019 initiatives to achieve goals of the 10th Midterm management plan
FY2019 initiatives to achieve goals of the 10th Midterm management plan (G20) FY2019 plan/ summary of consolidated performance forecast Consolidated (sales 730 billion JPY + 6.1%, core operating profits 100 billion JPY +5.1% ) Excluding financial impact of exchange rate fluctuations, sales growth
Slide 13: Consolidated earnings forecast
Record high Forecast for FY2019 Absorbing rising raw material costs and R&D investments etc. for continuous sustainability by increasing profit Consolidated earnings forecast (Millions of yen) FY Ending (Ref.) ※1 FY Ended Difference Dec. 31, Difference Actual Dec. 31, 2018 (%) 2019 difference Net
Slide 14: Shareholder Return Policy
Shareholder Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 15: Shareholder return policy
Continued dividend increase in FY 2019 and total return ratio of 50% scheduled through the purchase of own shares and dividends linked to business performance Shareholder return policy (Millions of yen) 60% 40,000 Dividends Purchase of own shares Total return ratio 50% 35,000 50% 30,000 40% 25,000
Slide 16: Dividends per share
Steady and continuous dividend payments, on track for 18 consecutive periods of increased dividends Raise dividend payout ratio by stages Dividends per share (JPY) 40 Annual dividend (JPY) Consolidated divident payout ratio 35% 30% Approx. 30 26% 25% 20% 20 15% 28 24 10% 10 20 15 16 11 11 13 13 5%
Slide 17: Stock buy-back acquisition graph
Swiftly acquire stocks through buy-back based on cash conditions Stock buy-back acquisition graph (100 millions of yen) Stock buy-back acquisition 150 100 155 140 140 130 120 50 110 90 76 80 65 0 '10/3 '11/3 '12/3 '13/3 '14/3 ※1 '14/12 '15/12 '16/12 '17/12 '18/12 *1： 9-month FY irregular settlemen
Slide 18: Improvement of Corporate Value
Improvement of Corporate Value Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 19: Initiatives to achieve the Cohesive Society and resolve important issues
Through our initiatives to achieve Unicharm’s envisioned “Cohesive Society”, resolve important issues and achieve sustainable growth 【Unicharm’s Key Challenges】 1. Lengthening Healthy Life 4. Contributing to Expectancy the Community 2. Supporting Women's Independence and Improving Hygiene in Emergin
Slide 20: Digital technology and the sixth sense to realize Cohesive Society
Determine sixth sense by utilizing digital technology, create “gentleness” and contribute to realizing Cohesive Society Realizing Cohesive Society From neutral＋α NOLA DOLA Free consumers from theirCreate “gentleness” Provide products and “burdens” service that fulfill consumers’ dreams Sixth sense （
Slide 21: Digital innovation center in China
Establishment digital innovation center in China for development new customers and realization of creating for customers’ value Find out sixth sense to enhance competitiveness by promoting digital database and transformation of organization under intense environmental changes for continuous growth D
Slide 22: Digital transformation activity for supporting consumers' dreams
Digital transformation activity for supporting consumers’ dreams to come true ◆Establishment cohesive society’s institute ◆Pick up the seeds of consumers’ worries, provide resolvable information Discovery real value to obtain bio‐information Child-rearing Video Media “Babily” in China App that
Slide 23: Lengthening healthy life expectancy
Lengthening healthy life expectancy ◆Supporting healthy life expectancy with “Lifree” ◆ Implementation of “Dementia Supporter* Training Course” Contributing to lengthening healthy life expectancy Learn the importance of promoting social with Lifree “Social Walking”* contribution activities for b
Slide 24: Supporting women's independence and improving hygiene in emerging countries
Supporting women's independence and improving hygiene in emerging countries ◆Efforts to eliminate ◆Support for low-birth-weight baby “I can't go to school because I am menstruating” Activity of “Project for support chiinasa inochi” Expansion of first menstruation educational (tiny life) programs
Slide 25: Contribution to Environmental and Sustainability Possibilities
Contribution to Environmental and Sustainability Possibilities ◆Activities towards recycling disposable diapers Unicharm’s aimed diaper recycling model We treat low-quality pulp with our unique ozone process after extracting it from used disposable diapers. This has made it possible to break d
Slide 26: Contributing to the Community
Contributing to the Community ◆Contributing to the “Support of Disaster-Affected Areas” Continuing the Matching Fund* which combines Disaster-Affected Area Support and energy-saving initiatives Sales of “Super Coolbiz 2018” 4,014 thousand JPY, Utilize donation to the "Michinoku Mirai Fund" that
Slide 27: Strengthen the Organization and Fair business Practices
Strengthen the Organization and Fair business Practices ◆From 2016, established Work Style Reforms Office. Promote work style reforms with the themes of productivity improvement and female success For diversity assurance in Board of Directors. To be resolved in 59th annual meeting of stockholders
Slide 28: Evaluation from and cooperation with external agencies
Evaluation from and cooperation with external agencies Initiatives for the Global Environment Science Base Targets JCI FSC RSPO (Japan Climate Initiative) (Forest stewardship council) Initiatives to require companies to set Participated by 105 companies and System to certify appropriat
Slide 29: Copyright Corporation. All rights
Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 29