Slide 1: Kureha Corporation Reports Fiscal 2013 Results
Kureha Corporation Reports Fiscal 2013 Results Tokyo, Japan – May 2014 – Kureha Corporation (“Kureha”), a leading global supplier of specialty chemicals and plastics, has reported strong earnings for the fiscal year ended March 31, 2014 (FY2013). On a consolidated basis, sales increased by 13.5% yea
Slide 2: Consolidated Performance by Segment
Consolidated Performance by Segment (¥ million, except where stated) Division March 2013 March 2014 March 2015 (Forecast) Advanced materials Sales 27,650 32,815 36,000 Operating income/loss (2,131) (2,625) (1,300) Specialty chemicals Sales 32,833 36,615 40,000 Operating income/loss 6,136 7,341 9,200
Slide 3: Advanced Materials Outlook and Specialty Chemicals Division
Outlook: FY2014 divisional sales are forecast to increase by 10% to ¥36.0 billion, with operating losses halved from ¥2.6 billion to ¥1.3 billion. Sales of advanced plastics are projected to grow further, with Kureha anticipating that the positive growth in demand for PPS resin for automotive applic
Slide 4: Specialty Chemicals and Specialty Plastics Outlook
Outlook: Specialty Chemicals divisional sales are projected to grow by a further 9% in FY2014 to ¥40.0 billion, while operating income is forecast to rise by 26% to ¥9.2 billion. Sales of industrial chemicals are projected to record a marginal increase, while Kureha works to maximize revenue through
Slide 5: Specialty Plastics, Construction and Other Operations divisions
consolidated subsidiaries in the United States, amounting to approximately ¥1.5 billion, which had previously been recorded by the Advanced Materials division, will be transferred to the Specialty Plastics division from FY2014. In household products, Kureha will continue to optimize prices for NEW K
Slide 6: FY2014 Outlook
FY2014 Outlook (¥ million, except where stated) March 2014 March 2015 Change (Forecast) (%) Sales 148,124 155,000 4.6 Operating income 11,902 13,500 13.4 Recurring income 12,207 13,000 6.5 Net income 7,365 8,000 8.6 Earnings per share (EPS) (¥) 42.87 46.57 8.6 For FY2014, Kureha forecasts a 4.6% inc
Slide 7: Capex, Depreciation, R&D and Debt
Capex, Depreciation, R&D and Debt (¥ billion) March 2013 March 2014 March 2015 (forecast) Capital expenditure 20.0 16.5 26.5 Depreciation 8.9 9.1 9.1 R&D 4.4 4.6 5.3 Interest-bearing debt 68.4 77.2 88.5 Capital expenditure declined during FY2013 to ¥16.5 billion. However, in line with the positive f
Slide 8: Condensed Consolidated Balance Sheets
<Appendix> Condensed Consolidated Balance Sheets ( ¥ millions) 31 March 2014 31 March 2013 Assets Current assets 73,429 68,210 Cash and cash equivalents 8,726 9,954 Fixed assets Tangible assets 111,684 99,444 Intangible assets 2,034 1,463 Investments and other assets 37,311 36,166 Total Assets 224,4
Slide 9: Results for the Year ended March 31, 2014
Results for the Year ended March 31, 2014 May 16, 2014
Slide 10: Contents
Contents 1. FY2013 Results 2 • Financial Highlights 3 • Consolidated Net Sales and Operating Income by Segment 4~7 • Analysis of Recurring Income 8 • Breakdown of Extraordinary Income/Losses 9 • Key Indicators 10 • Balance Sheets 11 • Cash Flow 12 2. FY2014 Forecasts 13 • Estimated Figures 14 • Cons
Slide 11: 1. FY2013 Results
2 1. FY2013 Results (April 1, 2013 – March 31, 2014)
Slide 12: Financial Highlights
3 Financial Highlights Net sales increased 13% to ¥148 billion on volume growth in all business segments • Strong performance in automotive, agrochemicals and environment businesses • Home products sales surged before tax hike in Japan A 129% rise in net income, to ¥7.4 billion • Favorable curre
Slide 13: Net Sales and Operating Income by Segment: Advanced Materials
Consolidated Net Sales and 4 Operating Income by Segment Advanced Materials % Increase/ ( Unit: 100 million yen) FY2012 FY2013 Decrease Carbon products 44 52 19% Kureha Advanced plastics 137 171 25% Others 4 1 - 80% Consolidated Total 185 224 21% net sales Consolidated subsidiaries 221 289 31% Conso
Slide 14: Net Sales and Operating Income by Segment: Specialty Chemicals
Consolidated Net Sales and 5 Operating Income by Segment Specialty Chemicals % Increase/ ( Unit: 100 million yen) FY2012 FY2013 Decrease Industrial chemicals 94 98 4% Kureha Agrochemicals 83 118 42% Pharmaceuticals 98 95 - 4% Consolidated Total 275 311 13% net sales Consolidated subsidiaries 83 88 6
Slide 15: Net Sales and Operating Income by Segment: Specialty Plastics
Consolidated Net Sales and 6 Operating Income by Segment Specialty Plastics % Increase/ ( Unit: 100 million yen) FY2012 FY2013 Decrease Food packaging 79 76 - 3% Kureha Household products 176 191 9% Others 23 23 - 2% Consolidated Total 278 290 4% net sales Consolidated subsidiaries 215 257 19% Conso
Slide 16: Net Sales and Operating Income: Construction and Other Operations
Consolidated Net Sales and 7 Operating Income by Segment % Increase/ Construction ( Unit: 100 million yen) FY2012 FY2013 Decrease Construction business 247 250 1% Consolidated Consolidated adjustments - 98 - 78 --- net sales Total 150 172 15% Consolidated operating income 10 8 - 20% Disaster-relat
Slide 17: Analysis of Recurring Income
8 Analysis of Recurring Income Consolidated Recurring Income ( Unit: 100 million yen) FY2012 FY2013 Change Kureha Corporation 75.3 93.6 18.3 Consolidated subsidiaries - 1.3 36.2 37.5 Equity-method affiliates 2.8 3.3 0.5 Consolidation adjustments - 5.5 - 11.0 - 5.5 Consolidated recurring income total
Slide 18: Breakdown of Extraordinary Income/Losses
Breakdown of Extraordinary 9 Income/Losses ( Unit: 100 million yen) FY2012 FY2013 Change Subsidy income 3.1 4.8 1.7 Compensation for damage 1.5 0.8 - 0.7 Extraordinary income Gain on sales of investment securities 0.0 1.9 1.9 Gain on sales of noncurrent assets 0.1 0.2 0.1 Others 0.8 0.2 - 0.6 Total
Slide 19: Key Indicators
10 Key Indicators ( Unit: 100 million yen) % Increase/ FY2012 FY2013 Decrease Capital expenditure 200 165 - 18% Depreciation 89 91 2% R&D expenses 44 45 3% Interest-bearing debt 684 772 13% Net interest expense -2 -1 --- ¥82.98/US$1 ¥100.29/US$1 Exchange rate ¥107.00/€1 ¥134.44/€1 # Employees 4,046
Slide 20: Balance Sheets
11 Balance Sheets Assets ( Unit: 100 million yen) As of March 31, 2013 As of March 31, 2014 Change Cash and cash equivalents 100 87 - 12 Accounts and notes receivable-trade 275 304 30 Inventories 253 281 28 Other current assets 55 62 7 Sub total 682 734 52 Property, plant and equipment 994 1,117 122
Slide 21: Cash Flow
12 Cash Flow As of As of ( Unit: 100 million yen) March 31, 2013 March 31, 2014 Pre-depreciation profit 143 199 Increase/decrease in assets and liabilities - 25 - 38 Cash flow from Payments of corporation tax - 12 - 30 operating activities Other-net -4 8 Total 102 141 Cash flow from investing activi
Slide 22: 2. FY2014 Forecasts
13 2. FY2014 Forecasts (April 1, 2014 – March 31, 2015)
Slide 23: Estimated Figures
14 Estimated Figures FY2013 FY2014 % Increase/Decrease Non- Ratio Non- Ratio Non- ( Unit: 100 million yen) Consolidated Consolidated Consolidated Consolidated (%) Consolidated (%) Consolidated Net Sales 1,481 824 1.8 1,550 890 1.7 4.6% 8.0% Operating income 119 87 1.4 135 100 1.4 13.4% 14.8% Recurri
Slide 24: FY2014 Forecast by Segment: Advanced Materials
Consolidated Net Sales and 15 Operating Income by Segment Advanced Materials % Increase/ ( Unit: 100 million yen) FY2013 FY2014 Decrease Carbon products 52 70 35% Kureha Advanced plastics 171 174 2% Others 1 1 0% Consolidated Total 224 245 9% net sales Consolidated subsidiaries 289 360 25% Consolida
Slide 25: FY2014 Forecast by Segment: Specialty Chemicals
Consolidated Net Sales and 16 Operating Income by Segment Specialty Chemicals % Increase/ ( Unit: 100 million yen) FY2013 FY2014 Decrease Industrial chemicals 98 99 1% Kureha Agrochemicals 118 124 5% Pharmaceuticals 95 122 28% Consolidated Total 311 345 11% net sales Consolidated subsidiaries 88 89
Slide 26: FY2014 Forecast by Segment: Specialty Plastics
Consolidated Net Sales and 17 Operating Income by Segment Specialty Plastics % Increase/ ( Unit: 100 million yen) FY2013 FY2014 Decrease Food packaging 76 84 11% Kureha Household products 191 182 - 5% Others 21 34 62% Consolidated Total 290 300 3% net sales Consolidated subsidiaries 257 285 11% Cons
Slide 27: FY2014 Forecast: Construction and Other Operations
Consolidated Net Sales and 18 Operating Income by Segment FY2013 FY2014 % Increase/ Construction ( Unit: 100 million yen) Decrease Consolidate Construction business 250 210 - 16% d Consolidated adjustments - 78 - 70 --- net sales Total 172 140 - 19% Consolidated operating income 8 3 - 63% Decrease
Slide 28: Key Indicators
19 Key Indicators ( Unit: 100 million yen) % Increase/ FY2013 FY2014 Decrease Capital expenditure 165 265 61% Depreciation 91 91 0% R&D expenses 46 53 15% Interest-bearing debt 772 885 15% Net interest expense -1 -2 --- ¥100.29/US$1 ¥100/US$1 Exchange rate ¥134.44/€1 ¥135/€1 # Employees 4,080 4,215
Slide 29: Cash Flow
20 Cash Flow As of As of ( Unit: 100 million yen) March 31, 2014 March 31, 2015 Pre-depreciation profit 199 203 Increase/decrease in assets and liabilities - 38 - 19 Cash flow from Payments of corporation tax - 30 - 32 operating activities Other-net 8 16 Total 141 167 Cash flow from investing activi
Slide 30: 3. Consolidated Companies
21 3. Consolidated Companies
Slide 31: Consolidated Companies
22 Consolidated Companies FY2012 FY2013 Increase/Decrease ( Unit: 100 million yen) Net sales Total assets Net sales Total assets Net sales Total assets Kureha Corporation 738 1,665 824 1,760 86 95 Kureha Trading Group (2) 275 136 288 134 13 -3 Kureha Corporation 185 --- 224 --- 39 --- Kureha Trading
Slide 32: Consolidated Companies
23 Consolidated Companies FY2012 FY2013 Increase/Decrease ( Unit: 100 million yen) Net sales Total assets Net sales Total assets Net sales Total assets Kureha Nishiki Group (4) 190 92 184 96 -6 5 Construct- Kureha Engineering Co. 57 34 66 36 9 2 ion Consolidation adjustments - 98 --- - 78 --- 20 ---
Slide 33: 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