Toagosei Co., Ltd. · TSE:4045
Toagosei — FY2019 Earnings Presentation
25 slides from Toagosei's earnings presentation, Feb 14, 2020
Slide 1: Financial Results for FY2019
Financial Results for FY2019 February 14, 2020 This document is a translation of the official Japanese version provided for information purpose only.
Slide 2: Overview of Results for FY2019
Overview of Results for FY2019 Scope of consolidation Number of consolidated subsidiaries: 21 (no change) Number of equity-method affiliates: 2 (no change) FY2018 FY2019 Change (Millions of Net sales yen) 150,066 144,955 -5,111 -3.4% (Millions of Operating income yen) 16,408 13,782 -2,625 -16.0% Ope
Slide 3: Summary of Financial Results for FY2019
Summary of Financial Results for FY2019 <Business Environment> ・In the global economy, China and other East Asian countries saw their economies stagnate due to the prolonged trade war between the U.S. and China. ・From October, the Japanese economy faced a growing concern of economic downturn especia
Slide 4: Consolidated Results (by Segment)
Consolidated Results (by Segment) Net sales (by consolidated segment) (Millions of yen) Changes in net sales FY2018 FY2019 Volume Unit price Change Commodity Chemicals 69,908 65,667 -2,235 -2,005 -4,240 Polymer & Oligomer 29,506 29,112 -767 373 -394 Adhesive Material 11,914 11,174 -660 -79 -739 Perf
Slide 5: Other Income/Expenses and Extraordinary Income/Loss (Consolidated)
Other Income/Expenses and Extraordinary Income/Loss (Consolidated) [Other income/expenses] [Extraordinary income/loss] (Millions of yen) (Millions of yen) FY2018 FY2019 Change FY2018 FY2019 Change Interest and dividend Gain on sales of income 868 1,080 212 5 7 2 non-current assets Equity in earnings
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet (Millions of yen) Dec. 31, Dec. 31, [Balance Sheet] Change 2018 2019 ① Non-current assets increased Cash and deposits 32,676 32,989 313 because of active capital investment, Notes and accounts among other factors. receivable 45,154 42,534 -2,620 Securities 46,000 44,000 -2
Slide 7: Overview of Consolidated Subsidiaries (Results for FY2019)
Overview of Consolidated Subsidiaries (Results for FY2019) (Millions of yen) Net income (loss) Ownership Net sales Operating income (loss) attributable to owners of Company name Segment (%) parent FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 Commodity 1 Toa Techno-Gas Chemicals 100 4,940 4,577 634 313
Slide 8: Challenges in FY2020
Challenges in FY2020 Uncertainty increases due to the global economic recession coupled with concerns over the spread of novel coronavirus infection in China Start Medium-Term Management Plan “Stage up for the Future” We will pursue further expansion of our high-value-added products businesses by st
Slide 9: Consolidated Results Forecast for FY2020
Consolidated Results Forecast for FY2020 (Millions of yen) FY2019 FY2020 1H FY2020 2H FY2020 forecast Change (A) (forecast) (forecast) (B) (B-A) Net sales 144,955 69,000 72,000 141,000 -3,955 Operating income 13,782 6,200 6,800 13,000 -782 Operating income ratio 9.5% 9.0% 9.4% 9.2% -0.3% Other incom
Slide 10: Consolidated Results Forecast for FY2020 (by Segment)
Consolidated Results Forecast for FY2020 (by Segment) Net sales (Millions of yen) FY2019 FY2020 Change Factors for change results forecast Commodity [Decrease] Polyvinyl chloride, acrylic monomer, caustic 65,667 60,300 -5,367 Chemicals soda Polymer & 29,112 29,800 688 [Increase] Flocculants, oligome
Slide 11: Historical Consolidated Results
Historical Consolidated Results (Millions of yen) (Yen) 30,000 120.0 104.8 98.1 96.9 25,000 100.0 78.9 20,000 16,147 (11.9%) 17,453 (12.1%) 16,408 (10.9%) 74.2 80.0 15,000 13,782 (9.5%) 13,000 (9.2%) 60.0 13,801 12,911 12,748 10,387 10,000 9,700 40.0 5,000 20.0 0 0.0 FY2016 FY2017 FY2018 FY2019 FY20
Slide 12: Reference for Consolidated Performance
Reference for Consolidated Performance (Billions of yen) FY2020 FY2016 FY2017 FY2018 FY2019 forecast Capital investment (acceptance basis) 5.1 10.0 12.5 15.8 13.6 Capital investment (approval basis) 13.2 22.1 17.0 16.9 14.0 Depreciation and amortization 7.9 7.9 8.3 9.2 9.9 Research and development e
Slide 13: Historical Reference for Consolidated Performance
Historical Reference for Consolidated Performance (Millions of yen) (Millions of yen) 200,000 196,515 50,000 193,764 186,419 182,624 40,000 78.6% 78.4% 77.3% 167,991 30,000 160,000 76.5% 76.8% 20,000 12,307 12,150 11,692 11,534 11,400 10,000 120,000 0 FY2016 FY2017 FY2018 FY2019 FY2020 (forecast) Sh
Slide 14: Overview of Consolidated Subsidiaries (FY2020 Forecast)
Overview of Consolidated Subsidiaries (FY2020 Forecast) (Millions of yen) Net income (loss) Net sales Operating income (loss) attributable to owners of Ownership Company name Segment (%) parent FY2020 FY2020 FY2020 FY2019 FY2019 FY2019 forecast forecast forecast Commodity 1 Toa Techno-Gas Chemicals
Slide 15: Medium-Term Management Plan for 2020 to 2022 "Stage up for the Future"
Medium-Term Management Plan for 2020 to 2022 “Stage up for the Future”
Slide 16: Summary of Previous Medium-Term Management Plan "Trajectory Toward Growth 2019"
Summary of Previous Medium-Term Management Plan “Trajectory Toward Growth 2019” Basic policies Strengthen our high-value-added products business and promote the growth strategy including overseas expansion of the business Centering on growth strategy businesses, we promoted active capital investment
Slide 17: Trajectory Toward Growth 2019: Overview of Actions and Future Initiatives
-Trajectory Toward Growth 2019- Overview of Actions and Future Initiatives Overview of actions Future initiatives [Polymer & Oligomer Segment] ・Improve operating ratio of ・Started operation of a new acrylic polymer plant in Thailand new facilities ・Started operation of the facility for binders for L
Slide 18: Capital investment in growth strategy products and recoup investment
Medium-Term Management Plan for 2020 to 2022 “Stage up for the Future” Capital investment in growth strategy products and recoup investment 1 Realize plants with high productivity, such as the new plant in Thailand and the plant for binders for LIB negative electrode. They will contribute to profit
Slide 19: Positioning of "Stage up for the Future"
Medium-Term Management Plan for 2020 to 2022 “Stage up for the Future” Positioning of Medium-Term Management Plan for 2020 to 2022 “Stage up for the Future” The Medium-Term Management Plan for 2020 to 2022 is positioned as a stage that follows the previous medium-term management plan “Trajectory Tow
Slide 20: Basic Policies and Key Initiatives
Medium-Term Management Plan for 2020 to 2022 Basic Policies and Key Initiatives — Basic policies — ◆Expand high-value-added businesses ◆Creation of new business units, including the “fourth core” business that will underpin the future of Toagosei Group ◆Strengthen core businesses and execute busines
Slide 21: Quantitative Target
Medium-Term Management Plan for 2020 to 2022 Quantitative Target FY2019 results FY2022 target Net sales 145.0 billion yen 163.0 billion yen Operating income 13.8 billion yen 17.0 billion yen [Operating income ratio] [9.5％] [10.4％] EBITDA 23.0 billion yen 27.0 billion yen High-value-added product rat
Slide 22: Net Sales Target
Medium-Term Management Plan for 2020 to 2022 Net Sales Target ■High-value-added products ■Commodity products 21
Slide 23: Operating Income Target
Medium-Term Management Plan for 2020 to 2022 Operating Income Target ■High-value-added products ■Commodity products 22
Slide 24: Capital Policy
Medium-Term Management Plan for 2020 to 2022 Capital Policy Basic Policies ・Improve capital efficiency and enhance shareholder return while pursuing further business expansion through various investments and M&As, which serve as the basis for sustainable growth ・Strengthen stakeholder engagement to
Slide 25: Overview of Other Quantitative Targets
Medium-Term Management Plan for 2020 to 2022 Overview of Other Quantitative Targets Promote active capital investment toward sustainable growth ・Grow and expand high-value-added products ・Renew facilities and improve productivity of commodity chemicals ・Strengthen information-related investment, etc