Unicharm Corporation · TSE:8113
Unicharm — FY2023 Earnings Presentation
72 slides from Unicharm's earnings presentation, Feb 7, 2024
Slide 1: Fiscal Year Ended December 31, 2023 Investor Meeting Presentation Materials
Fiscal Year Ended December 31, 2023 (Jan 1, 2023 to Dec 31, 2023） Unicharm Investor Meeting Presentation Materials February 7, 2024 Unicharm Corporation Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 1
Slide 2: Financial Performance Summary
Fiscal Year Ended December 31, 2023 (January 1, 2023 to December 31, 2023) Financial Performance Summary Projections stated in these materials include those based on the Company’s currently obtained assumptions, forecasts and plans regarding the future. Therefore, actual results may differ significa
Slide 3: Financial Results Summary
Fiscal Year Ended December 31, 2023 (January 1, 2023 to December 31, 2023) Financial Results Summary Sales 941.8 billion JPY (YoY +4.9%) Consolidated Core operating income 128 billion JPY (YoY +7.0%) All-time high for all of sales, core operating income and profit attributable to owners of parent
Slide 4: Consolidated account highlights
Sales hit a record high for 7 consecutive years Core operating income and profit attributable to owners of parent company also hit a record high Consolidated account highlights FY Ended (Unit: 100 million yen) (Forecast) Achievement (From Jan. to Dec.) FY Ended Dec. Dec. 31, Gap(yen) Gap(%) FY Ende
Slide 5: Sales and core operating income trend (quarterly)
Sales of fourth quarter hit record high with stable sales growth and profitability improvement by continuous value-shifting in the fourth quarter of FY2023 Sales trend (quarterly) Core operating income trend (quarterly) (Unit: 100 million yen) (Unit: 100 million yen) 2,544 2,435 2,108 1,895 1,93
Slide 6: Core operating income fluctuation
Core operating income increased by 8.4 billion JPY as a result of absorbing cost rises such as raw materials by continuing value-shifting (Unit: 100 million yen) Core operating income fluctuation (from Jan. to Dec.) 1,280 1,196 -18 -47 +26 -106 -72 -18 +254 +65 Sales Advertising Logistics Other Ma
Slide 7: Geographical segment information
Pet Care, Wellness Care and Baby Care Business led sales and profit increase through the penetration of value- shifting in Japan. The performance improved with sales and profit increase in main countries in Asia except for China and Thailand. The business in other regions were driven by improvement
Slide 8: Core operating income margin by geographical segment
Establishment of high profitability base through continuous penetration and expansion of value-added products Core operating income margin by geographical segment (from Jan. to Dec.) *1 Japan Asia Others Consolidation 21.7% 20.1% 20.2% 19.7% 19.8% 18.8% 15.8% 15.8% 15.6% 13.3% 13.5% 13.6% 13.8% 12
Slide 9: Sales ratio of overseas and Asian markets
Overseas and Asian markets keep overwhelming sales ratio Sales ratio of Sales ratio of overseas markets Asian markets 66.5％ 46.5％ Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 9
Slide 10: Business Segment Information
Sales and profit increased in Personal Care Business let by strong performance mainly in Japan despite lower sales of face mask and China business decline. Pet Care Business led sales and profit increase thanks to the effect of value-shifting penetration, and investment increased in China and South-
Slide 11: Rate fluctuations by currency
Impact of foreign exchange fluctuations: Approx. 24.1 billion JPY increase in sales and approx. 3.1 billion JPY increase in core operating income Rate fluctuations by currency (Jan. to Dec. average rate) Exchange rate for FY ended Exchange rate for FY ended Currency December 31,2023 Rate change De
Slide 12: Summary of Performance Forecast FY Ending December 31, 2024
Summary of Performance Forecast FY Ending December 31, 2024 Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 13: Summary of Consolidated Performance Forecast
Fiscal Year ending December 31, 2024 Summary of Consolidated Performance Forecast Sales 1,006 billion JPY (YoY +6.8%) Consolidated Core operating income 144 billion JPY (YoY +12.5%) All time high for sales and core operating income. Despite increase in selling, general and administrative expense
Slide 14: Consolidated account highlights forecast
All-time high for sales and all profit items for 8 consecutive years Consolidated account highlights (Unit: 100 million yen) (From Jan. to Dec.) FY Ending FY Ended Dec. 31, （Ref） * 1 2023 Dec. 31, Gap(yen) Gap(%) Actual gap rate 2024 Net sales 9,418 10,060 +642 +6.8% +5.8% Core operating income 1,2
Slide 15: Shareholders Return Policy
Shareholders Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 16: Shareholders return policy
Through the payment of dividend linking to the business performance and buy-back of our own shares, we are also aiming for total return ratio of 50% in 2024 Shareholders return policy (Unit: 100 million yen) Dividend Purchase of own shares Total return ratio 75% 600 50% 50% 400 25% 200 0 0% '15/12
Slide 17: Dividends per share
Dividend per share Plan to increase dividend for 23 consecutive years (44 yen a year) Dividends per share (JPY) 44.0 38.0 40.0 36.0 32.0 28.0 24.0 20.0 14.8 16.0 '15/12 '16/12 '17/12 '18/12 '19/12 '20/12 '21/12 '22/12 '23/12 '24/12E Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm Al
Slide 18: Share buy-back history
Flexible purchase of own shares depending on the cash condition Purchase 19 billion JPY (4.5 M shares) in 2024 as planned Share buy-back history (100 million JPY) 190 160 170 170 155 150 130 140 140 72 '15/12 '16/12 '17/12 '18/12 '19/12 '20/12 '21/12 '22/12 '23/12 '24/12E Copyright Copyright (c) (c
Slide 19: The 12th Mid-term Management Plan Financial Goal
The 12th Mid-term Management Plan Financial Goal Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 20: Financial Goal
Towards realizing “Cohesive Society” in 2030 and becoming world’s No.1 company, target in 2026 is “sales 1,150 billion JPY” aiming sales CAGR approx. 7%. Financial Goal Kyo-Sei Life Vision 2030 The 11th Mid-term Group The 12th Mid-term Group Management Plan Management Plan（Results) Sales Sales Sal
Slide 21: Approach to realize a Cohesive Society (Social Inclusion)
Approach to realize a “Cohesive Society (Social Inclusion)” Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 22: Formulating Mid-to-Long Term ESG Objectives Kyo-sei Life Vision 2030
Formulating Mid-to-Long Term ESG Objectives “Kyo-sei Life Vision 2030" ◆ 20 key themes with the goal in 2030 Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 22
Slide 23: 20 key themes of initiatives
Formulating Mid-to-Long Term ESG Objectives “Kyo-sei Life Vision 2030" ◆20 key themes of initiatives to realize “Cohesive Society (Social Inclusion)” • Extension of healthy life expectancy and improvement of QOL • Support for a society where gender and sexual orientation do not restrict people’s act
Slide 24: Key initiatives, indicators, and target values
Key initiatives, indicators, and target values ◆ Safeguarding the well-being of individuals Mid- and long- term Results goals Key initiatives Indicators 2021 2022 Target Target value year Our aim is to provide products and services that contribute to the realization of a society where all people can
Slide 25: Support lengthening healthy life expectancy
(Safeguarding the well-being of each individual) Support “lengthening healthy life expectancy” with products and services for the senior citizens ◆Extension of healthy life expectancy and improvement of QOL Year 2030 Goal Continuation From 1995 ~ From 2010’s 〜 of 100% Rollout of products and service
Slide 26: Support for a society free of gender and orientation restrictions
(Safeguarding the well-being of each individual) Rollout of activities tailored to national and regional characteristics to develop a society where women shine ◆Support for a society where gender and sexual orientation do not Year 2030 Goal restrict people’s activities Continuation of 100% Developme
Slide 27: Unique new value proposals by country and region
(Safeguarding the well-being of each individual) Unique new value proposals that match the characteristics of each country and region Underwear-like type that reduces the anxiety of leaks, Cool napkin that feels less dampness and a and a napkin that focuses on warmth (developed by cool, refreshi
Slide 28: Coexistence with pets
(Safeguarding the well-being of each individual) Support improvement of childcare environment through products and services that eliminate discomfort and create the comfort of babies and parents ◆Coexistence with pets Year 2030 Goal Continuation of 100% Development of products and services that enab
Slide 29: Improvement of childcare
(Safeguarding the well-being of each individual) Support improvement of childcare environment through products and services that eliminate discomfort and create the comfort of babies and parents ◆Improvement of childcare Year 2030 Goal Continuation of 100% Development of products and services that e
Slide 30: Protect everyday health and support safe and comfortable living
(Safeguarding the well-being of each individual) Protect everyday health and support safe and comfortable living ◆Improvement of public hygiene Year 2030 Goal Continuation of 100% Development of products and services that enable each one of us to control infection Pursuing comfort, functionality,
Slide 31: Safeguarding the well-being of society
Key initiatives, indicators, and target values ◆ Safeguarding the well-being of society Mid- and long- term Results goals Key initiatives Indicators Target Target 2021 2022 value year Our aim is to provide products and services that not only improve the safety, security, and satisfaction of our cust
Slide 32: Innovations to achieve NOLA & DOLA
(Safeguarding the well-being of society) Development of products and services toward the realization of social inclusion so that everyone can lead a healthy and sanitary life comfortably ◆Innovations to achieve “NOLA & DOLA” Year 2030 Goal Continuation of 100% Development of products and services th
Slide 33: Safeguarding the well-being of our planet
Key initiatives, indicators, and target values ◆ Safeguarding the well-being of our planet Results Mid- and long- term goals Key initiatives Indicators 2021 2022 Target Target value year Our aim is to provide products and services that are sanitary and convenient, as well as contribute to activities
Slide 34: Promoting Three 0 by 2050
(Safeguarding the well-being of our planet) Promoting Three “0” by 2050 「“0” waste plastic, “0” CO2 emission, “0” natural forest destruction」 「Eco Plan 2030」 Environmental 2021 2022 2023 2030 2050 Implementation items Base year Targets 2030 Results Results Targets Targets Vision Reducing usage of
Slide 35: Initiatives towards zero CO2 emissions by 2050
(Safeguarding and sustaining the well-being of our planet) Aiming to newly acquire 1.5°C target certification from SBTi* Initiatives towards a society with zero CO₂ emissions by 2050 Fiscal Year Initiative Status 2018 Certified as the 17th 2.0°C target setting company in Japan 2020 Setting of
Slide 36: Establish platform to visualize GHG emissions
(Safeguarding the well-being of our planet) Establish the platform to visualize GHG (Green House Gas) emissions Aim to disclose GHG emissions by product to achieve net “zero” emissions of CO2, build the GHG emission visualization platform, including CO2 in the entire supply chain, and promote the
Slide 37: Addressing climate change: renewable electricity
(Safeguarding the well-being of our planet) Switch all electric power used at factories to green electric power* aiming to reduce CO2 emission ◆Addressing climate change 2030 Target 100% Use of renewable power Percentage of renewable electric power used for business operation Ratio of renewable el
Slide 38: Carbon Neutral Initiatives to Address Climate Change
(Safeguarding the well-being of our planet) Carbon Neutral Initiatives to Address Climate Change Forest fund funded by 10 Japanese companies Participate in “Eastwood Climate Smart Forestry Fund Ⅰ” Name Eastwood Climate Smart Forestry Fund I Approx. 60 Billion yen (Approx. 415 Million USD) Operatio
Slide 39: Environmentally friendly and sustainable logistics system
(Safeguarding the well-being of our planet) Initiatives for building an environmentally friendly and sustainable logistics system Expansion of modal shift through separation of cargo handling Developing logistics bases near local consumption areas operations, consolidated transportation, and uti
Slide 40: Aiming for a world with zero waste
(Safeguarding the well-being of our planet) Aiming for a world with “zero waste” Taking on the Challenge of “Disposable Diapers to Horizontal Recycling from Disposable Diapers” ◆ Development of environmentally friendly products 2030 Target More than 10 cases Number of products and services that impl
Slide 41: Recycle
(Safeguarding the well-being of our planet) Reduce waste disposal cost and environmental burden through recycling used disposable diaper ◆Expand our line of recycle model 2030 Target More than 10 cases Number of disposable diaper recycling facilities introduced Keep it safe and convenient, toward
Slide 42: Flow of recycling process of used disposable diapers
(Safeguarding the well-being of our planet) Flow of recycling process of used disposable diapers Horizontal recycling (from disposable diaper to disposable diaper) i. Separation collection and transportation ii. Crushing, cleaning, and Used disposable separation processes diaper (Cleaning) (Crushi
Slide 43: Demo-project to promote recycling used disposable diapers
（Safeguarding the well-being of our planet） Demo-project to promote recycling used disposable diapers Co-creation with local governments and Collection bags made from recycled plastic businesses to promote recycling of used diapers which was derived from used disposable diapers Hygienic Self-Gov
Slide 44: Society where diaper recycling is a natural matter
(Safeguarding the well-being of our planet) Make more opportunities to experience recycling Create the society where “Disposable diaper recycling is a natural matter” Future vision using recycled materials (image) Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporati
Slide 45: Advancing Product Recycling
(Safeguarding the well-being of our planet) Recycling Initiatives at Production Bases ◆ Advancing Product Recycling 2030 Target Start of commercial use Implementation of material recycling for non- woven material products using recycled resources Advancing waste reduction by reusing product loss f
Slide 46: Efforts that consider safety and the environment
(Safeguarding the well-being of our planet) Efforts that consider safety and the environment ◆ Reducing usage volume of plastic 2030 Target Reduced by half (Compared to 2020) Ratio of virgin petrochemical-derived plastics to plastics Switched to paper materials for sales Began recycling plastic
Slide 47: Unicharm Principles: key initiatives and targets
Key initiatives, indicators, and target values ◆ Unicharm Principles Results Mid- and long- term goals Key initiatives Indicators 2021 2022 Target value Target year Our aim is to pursue fairness and transparency in order to establish and retain stakeholder trust. Every year Maintain and improve rati
Slide 48: Management practices that take sustainability into account
(Unicharm Principles) Introduction of ESG evaluation system for all employees following on from executive evaluation to maximize social and economic value ◆Management practices that take sustainability into account Every year starting from 2026: Purpose Max level Contribution to achievement of SDGs
Slide 49: Promotion of diversity management
(Unicharm Principles) Strengthen initiatives toward women empowerment ◆Promotion of diversity management （％） 2030 Target ■女性管理職比率 40 Over 30% 28.3 29.2 27.8 女性管理職比率（全社） 30 24.9 24.6 20 23.0 22.5 23.2 女性管理職比率（日本） 19.4 19.7 10 14.7 14.4 14.4 女性管理職比率（海外） 13.3 13.3 The ratio of female employees in manag
Slide 50: Local executive employee ratio
(Unicharm Principles) Developing human resources globally who create unique value that is closely connected to local area Localization ratio of general manager and above Local executive employee ratio 49.0% (As of December 2023) Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All r
Slide 51: Strengthen human capital management
(Unicharm Principles) Strengthen "human capital management" to maximize the value of employees ◆Fostering the development of competent human resources 2030 Target 2023 Employee satisfaction Over 80% (Entire company) Max. score 5 4.04 Ratio of positive responses to “Real feeling of growth through wor
Slide 52: Training and nomination of successors
(Unicharm Principles) Training and nomination of successors (Corporate governance report: Succession planning) Management practices that take sustainability into account (1) Each executive officers periodically conducts interviews with future director candidates and future executive officer candidat
Slide 53: Fostering DX human resources toward new value creation
Fostering DX human resources toward new value creation Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 54: Achieve a Cohesive Society using digital technology
Utilize digital technology and create absolute value for consumers in order to realize sustainable improvement of corporate value and stronger competitiveness Contributions “Love Your Possibilities” Achieve a “Cohesive Society” (= Social Inclusion) Utilize digital technology and understand the deep
Slide 55: Customer scale: maximizing Life Time Value
12th Mid-term Management Strategy Plan (Yr. 2024 ~ 2026) Creating a model to maximize Life Time Value (LTV) based on women Building long-term relationships with customers and accelerating the diversification of products and services LTV business area of MDX Division (Marketing by DX) Existing Mark
Slide 56: Developing DX human resources globally
Initiatives to develop “DX human resources” globally to maximize customer lifetime value Create specialized learning opportunities through Online self-study on a global basis, “LinkedIn training sessions such as “DX Basic Study Group” to Learning” acquire basic digital knowledge Number of Login
Slide 57: Examples of initiatives using digital technology
Examples of initiatives using digital technology Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 58: Fostering resonant personnel for BOP Ship
Initiatives to foster “resonant personnel” who can realize “BOP Ship” on a global scale using digital technology “BOP-Ship”, Unicharm’s corporate culture that has been inherited from the establishment and evolving Always Absorb the best Take the lead to emphasize cooperation with speed overcome di
Slide 59: Japan initiatives utilizing digital technology-1
Japan initiatives utilizing digital technology-1 "Adult diaper counseling" that helps select the best Troubles about doggies and kitties are choice of disposable diaper shared in DOQAT* ※ DOQAT https://doqat.jp/ No. of Users: Approx. 29,000 Registrants: 44,000 (total) (As of the end of December,
Slide 60: Japan initiatives utilizing digital technology-2
Japan initiatives utilizing digital technology-2 Develop health care support service for kitties Accelerate the realization of a healthy childrearing environment through a capital through business and capital tie-up with RABO, and business alliance with First-Ascent Inc.*1 Inc.*2 *1 RABO, Inc. h
Slide 61: Japan initiatives utilizing digital technology-3
Japan initiatives utilizing digital technology-3 Evolved value transmission through digital measures “Shop search system” can help find shops outside the store before visiting stores carrying products to improve customer satisfaction Developed “Digital Scrum System” to discover Strengthening
Slide 62: Japan initiatives utilizing digital technology-4
Japan initiatives utilizing digital technology-4 State-of-the-art smart factory (Kyushu) utilizing a variety of self-operating machines and IoT Industrial Robot SCADA※1 Smart Logistics *1 Abbreviation for Supervisory Control And Data Acquisition Promoting collaboration for logistics digitalizati
Slide 63: Overseas initiatives utilizing digital technology
Overseas initiatives utilizing digital technology Pet growth recording tool + O2O pet clinic introduction platform “Pet note” Growth・Health Health records Personnel Contents Health check Hospital search consultation ＋ Product purchase （Quick commerce） An app “Sofy Girl Talk” that supports women'
Slide 64: Evaluation by external organizations (FY2023 1st Half)
Evaluation by external organizations and coordination (FY 2023 1st Half Year) February Received the 8th ACAP “Consumer-Oriented Activity Award” Received the “Minister of State for Special Missions Award” in 2022 Consumer-oriented Management Excellence Awards. Selected for “2023 Bloomberg Gende
Slide 65: Evaluation by external organizations (FY2023 2nd Half)
Evaluation by external organizations and coordination (FY 2023 2nd Half Year) July Selected as a constituent of “SOMPO Sustainability Index” for twelve years in a row Received the Excellence Award of “Supply Chain Innovation Awards 2023” Selected as a constituent of all six ESG investment indi
Slide 66: Index inclusion and evaluation
Index inclusion and evaluation * Disclaimer is posted on the following website https://www.unicharm.co.jp/en/company/news/2023/0725-02.html * The inclusion of Unicharm Corporation in any MSCI index, and the use of MSCI logos, trademarks, service marks, or index names herein, does not constitute a sp
Slide 67: Coordination with external organizations
Coordination with external organizations Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 67
Slide 68: Collaboration with external organizations
Collaboration with external organizations Local community contribution activities at Ehime Prefecture, the birthplace of Unicharm Support activities for children who are responsible for the future of the region through corporate hometown tax payments Purchase children’s books for Shikokuchuo City
Slide 69: Selected in 6 ESG investment indices adopted by GPIF
Evaluation by external organizations and coordination with them Selected in 6 ESG investment indices of stock composites adopted by GPIF Integrated Index Thematic Index E S G * The inclusion of Unicharm Corporation in any MSCI index, and the use of MSCI logos, trademarks, service * Disclaimer is pos
Slide 70: ESG-related scores and ratings
ESG-related scores and ratings 2019 2020 2021 2022 2023 Climate change B A- A- A- A- Forest CDP SCORES B B- B B A (timber) Water security B- B- B B A MSCI ESG RATINGS BBB 5.3 A 5.3 BBB 4.7 A 5.1 AA 5.7 FTSE ESG RATINGS 3.5 3.7 3.9 4.0 4.２ Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicha
Slide 71: Kyo-sei Life Vision 2030 examples of initiatives
“Kyo-sei Life Vision 2030” Examples of initiatives related to important themes Examples of initiatives Results Urine incontinence care: 176 times in total (as of the end of December 2023) “Urine incontinence care/excretion care” course Excretion care: 329 times in total (as of the end of December 20
Slide 72: We support the Sustainable Development Goals (SDGs)
私たちは持続可能な開発目標(SDGs)を支援しています。 Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved.