Kureha Corporation · TSE:4023
Kureha — H1 FY2016 Earnings Presentation
34 slides from Kureha's earnings presentation, Nov 14, 2016
Slide 1: Kureha Corporation Reports Interim Results April – September 2016
Kureha Corporation Reports Interim Results April – September 2016 This report has been prepared in accordance with the International Financial Reporting Standards (IFRS), which Kureha adopted in FY2016. Tokyo, Japan, December 2016 – Kureha Corporation (“Kureha”), a leading global supplier of special
Slide 2: Consolidated interim results by segment
Consolidated interim results by segment (Billions of yen) Segment Sept. 2016 Sept. 2015 Change (%) Advanced materials Sales 14.7 17.8 -17.5 Operating income 0.6 0.6 3.8 Specialty chemicals Sales 11.2 14.8 -24.2 Operating income 0.8 2.4 -67.8 Specialty plastics Sales 21.0 20.7 1.6 Operating income 2.
Slide 3: Performance by Segment: Advanced Materials and Specialty Chemicals
solutions to meet customer needs. Going forward, we will be able to directly showcase our technological know-how to customers through a new joint venture between Kureha and JGC Corporation, called Kureha Energy Solutions LLC. Based in Houston, Texas, this new company, which became operational in Oct
Slide 4: Specialty Plastics
Specialty Plastics Major product areas – food packaging materials, household products In the first-half period, sales increased 1.6% to 21.0 billion yen from 20.7 billion yen while operating income was up 64% from 1.4 billion yen to 2.3 billion yen. These results were mainly due to firm growth in th
Slide 5: Capex, Depreciation, R&D and Debt
Capex, Depreciation, R&D and Debt (Billions of yen) Sept. 2016 Sept. 2015 March 2017 (forecasts) Capital expenditure 4.8 5.3 14.5 Depreciation 5.1 4.8 10.2 R&D 2.2 2.3 5.4 Interest-bearing debt 77.8 87.7 80.8 Capital expenditure during the first-half period decreased from 5.3 billion yen to 4.8 bill
Slide 6: Full-year outlook commentary
In the Advanced Materials segment, competition in the PPS resin business will intensify. Also, there will be financial costs from our strategic shift to a direct Kureha market presence in North America in the PGA business as well as our investment into additional PVDF production capacity. However, t
Slide 7: Condensed interim balance sheets and income statement
Condensed interim balance sheets As of 30 September 2016 and 2015 (Millions of yen) Sept. 2016 Sept. 2015 Assets Current assets 67,699 70,812 Cash and cash equivalents 6,118 5,657 Noncurrent assets 162,832 179,431 Property, plant and equipment 121,364 130,848 Intangible assets 1,526 1,810 Investment
Slide 8: Fiscal 2016 Interim Results
Fiscal 2016 Interim Results (Period April 1 – September 30,2016) November 14, 2016
Slide 9: Contents
Contents 1. FY2016 Half-Year Results 1 • FY2016 1H Highlights 2-4 • Segment Performance 5-8 • Balance Sheets 9 • Cash Flow 10 2. FY2016 Full-Year Forecasts 11 • FY2016 Full-Year Outlook 12-15 • Segment Outlook 16-19 • Key Indicators 20 • Cash Flow 21 3. Consolidated Companies 22 Notice Kureha has ad
Slide 10: 1. FY2016 Half-Year Results
1 1. FY2016 Half-Year Results (April 1 – September 30, 2016)
Slide 11: FY2016 1H Highlights
2 FY2016 1H Highlights (in 100 million yen except where stated) FY2016 1H FY2015 1H %Change - Net sales down due to weak Net sales 602 670 -10.1% volumes in Advanced Materials Operating income 45 50 -9.9% and Specialty Chemicals Income before income tax 36 48 -25.8% - Lower operating income driven N
Slide 12: FY2016 1H Highlights
3 FY2016 1H Highlights Advanced Specialty Specialty Const- Other Segment FY2016 1H Materials Chemicals Plastics ruction Operations Total Adjustment Total Net sales 147 112 210 59 75 602 602 Elimination 0 Other income 2 Other expenses 1 Operating income 6 8 23 4 4 44 2 45 Financial income 3 Financial
Slide 13: FY2016 1H Highlights
4 FY2016 1H Highlights Net sales Operating income FY2016 1H FY2015 1H FY2016 1H FY2015 1H 250 25 24 23 210 207 200 20 178 147 148 14 150 15 112 100 75 75 10 8 59 63 6 6 4 4 3 3 50 5 0 0 Advanced Specialty Specialty Construction Other Advanced Specialty Specialty Other Construction Materials Chemical
Slide 14: Segment Performance: Advanced Materials
5 Segment Performance Advanced Materials (in 100 million yen) FY2016 FY2015 1H 1H %Change Advanced plastics Sales Declined on lower PGA volumes Advanced plastics 90 115 -22% (extruded products used for oil Carbon products 22 30 -28% and gas exploration) more than offsetting the growth of PVDF for Ot
Slide 15: Segment Performance: Specialty Chemicals
6 Segment Performance Specialty Chemicals FY2016 FY2015 Agrochemicals 1H %Change (in 100 million yen) Weak demand for fungicides 1H Sales Pharmaceuticals Agrochemicals 19 36 -48% Lower volume and lower price of Kremezin (therapeutic medicine Pharmaceuticals 32 42 -24% for chronic kidney failure) aff
Slide 16: Segment Performance: Specialty Plastics
7 Segment Performance Specialty Plastics FY2016 FY2015 (in 100 million yen) 1H 1H %Change Sales Home products Home products 101 89 14% Continued strong growth of home- Packaging materials 36 39 -9% use wrap film ‘NEW Krewrap’ Non-consolidated sales total 137 128 7% Packaging materials Decreased sale
Slide 17: Segment Performance: Construction and Other Operations
8 Segment Performance (in 100 million yen) FY2016 FY2015 1H 1H %Change Construction Sales Construction 96 98 -2% Construction Sales slightly down due to weak Adjustment -37 -35 -- demand for post-quake public Kureha Group sales 59 63 -7% reconstruction, but operating income upped on lower costs Kure
Slide 18: Balance Sheet
9 Balance Sheet (in 100 million yen) Assets Liabilities and Sept. 30 Mar. 30 Net Assets Sept. 30 Mar. 30 %Change %Change 2016 2016 2016 2016 Cash and cash equivalents 61 67 -6 Accounts and notes 188 198 -10 Accounts and notes payable-trade 259 309 -51 receivable-trade Interest-bearing debt 778 812 -
Slide 19: Cash Flow
10 Cash Flow (in 100 million yen) FY2016 FY2015 Change 1H 1H Pre-depreciation profit 86 98 -12 Increase/decrease n assets and liabilities 46 11 35 Payments of corporation tax -14 -25 10 Other-net -38 -28 -9 Cash flow from operating activities total 80 55 25 Cash flow from investing activities total
Slide 20: 2. FY2016 Full-Year Forecasts
11 2. FY2016 Full-Year Forecasts (April 1, 2016 – March 31, 2017)
Slide 21: FY2016 Full-Year Outlook
12 FY2016 Full-Year Outlook Changes from YoY (in 100 million yen) FY2016e FY2015 Change FY2016 projection as of May 2016 Net sales 1,300 1,408 -108 (-8%) -120 (-9%) Operating income 90 74 16 (22%) -15 (-14%) Income before income tax 85 66 19 (29%) -20 (-19%) Net income attributable to owners of Kure
Slide 22: FY2016 Full-Year Outlook
13 FY2016 Full-Year Outlook Advanced Specialty Specialty Const- Other Segment FY2016e (in ¥100M yen) Materials Chemicals Plastics ruction Operations Total Adjustment Total Net sales 330 250 420 140 160 1,300 1,300 Elimination 0 Other income *Incl. ¥7.8B subsidy income 80 Other expenses *Incl. ¥6.9B
Slide 23: FY2016 Outlook vs. FY2015 Performance
14 FY2016 Full-Year Outlook Present FY2016 Outlook vs. FY2015 Performance (in 100 million yen ) Net sales Operating income FY2016e FY2015 FY2016e FY2015 500 50 47 420 427 40 400 40 330 339 33 304 300 250 30 25 160176 200 162 20 15 14 16 140 11 14 100 10 7 0 0 Advanced Specialty Specialty Other Advan
Slide 24: FY2016 Outlook vs. Previous Projection
15 FY2016 Full-Year Outlook Present FY2016 Outlook vs. Previous FY2016 Projection (in May 2016) (in 100 million yen ) Present FY2016 Projection Present FY2016 Projection Net sales Operating income Prior FY2016 Projection Prior FY2016 Projection 500 50 400 420 440 40 400 40 36 330 30 300 250 265 30 2
Slide 25: Segment Outlook: Advanced Materials
16 Segment Outlook Advanced Materials (in 100 million yen) FY2016 FY2015 %Change Sales Advanced plastics PGA and PPS decline to more than Advanced plastics 211 213 -1% offset the growth of PVDF Carbon products 40 52 -23% Carbon products Other 4 4 2% Operating loss decreases on Non-consolidated sales
Slide 26: Segment Outlook: Specialty Chemicals
17 Segment Outlook Specialty Chemicals (in 100 million yen) FY2016 FY2015 %Change Agrochemicals Sales Declines on continued slow Agrochemicals 75 95 -21% demand and inventory adjustment Pharmaceuticals 55 74 -26% Pharmaceuticals Industrial chemicals 85 94 -10% Declines on lower volumes and Non-conso
Slide 27: Segment Outlook: Specialty Plastics
18 Segment Outlook Specialty Plastics (in 100 million yen) FY2016 FY2015 %Change Sales Home products 194 186 4% Home products Continued growth of home-use Packaging materials 71 79 -10% wrap film ‘NEW Krewrap’ Non-consolidated sales total 265 265 0% Packaging materials Packaging materials Flat heat-
Slide 28: Segment Outlook: Construction and Other Operations
19 Segment Outlook (in 100 million yen) FY2016 FY2015 %Change Construction Sales Construction Operating income decrease on Construction 210 246 -15% weak volumes in post-quake Adjustment -70 -84 -- reconstruction and with higher Kureha Group sales 140 162 -14% labor and raw materials costs Kureha Gr
Slide 29: Key Indicators
20 Key Indicators FY2016 FY2016 FY2016 FY2015 FY2015 FY2015 FY15-16 1H 2H Full year 1H 2H Full year %Change Capital expenditure 48 97 145 53 68 121 35% Depreciation 51 51 102 48 51 99 6% R&D expenses 22 32 54 23 26 49 19% Interest-bearing debt 778 808 808 877 812 812 -0% Exchange JP¥/US$ Average 105
Slide 30: Cash Flow
21 Cash Flow (in 100 million yen) FY2016 FY2015 Change Pre-depreciation profit 187 169 18 Increase/decrease n assets and liabilities -47 -22 -25 Payments of corporation tax -20 -43 23 Other-net 69 41 28 Cash flow from operating activities total 189 146 43 Cash flow from investing activities total -1
Slide 31: 3. Consolidated Companies
22 3. Consolidated Companies
Slide 32: Subsidiaries Sales and Assets
23 Subsidiaries Sales and Assets FY2016 1H FY2015 1H Change Net sales Total assets Net sales Total assets Net sales Total assets Kureha Corporation 286 1,883 310 1,963 -24 -80 Kureha Trading Group (2) 77 122 76 118 1 4 Kureha Corporation 112 - 146 - -33 - Kureha Trading Group (2) 41 - 35 - 6 - Kureh
Slide 33: Subsidiaries Sales and Assets
24 Subsidiaries Sales and Assets FY26016 1H FY2015 1H Change Total Net sales Net sales Total assets Net sales Total assets assets-38 Kureha Nishiki Group (4) 78 97 80 95 -3 1 Construc- Kureha Engineering Co. 19 26 18 28 1 -2 tion Consolidation adjustments -37 - -35 - -2 - Total 59 - 63 - -4 - Kureha
Slide 34: 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