Toyobo Co., Ltd. · TSE:3101
Toyobo — FY 3/11 Earnings Presentation
27 slides from Toyobo's earnings presentation, May 10, 2011
Slide 1: Presentation to Investors
Presentation to Investors Ryuzo Sakamoto President Toyobo Co., Ltd. May 10, 2011 (Analysts’ Meeting)
Slide 2: Highlights
Highlights FY 3/11 Results Operating income and net income rose approximately twofold. -Volume in LCD/electronic parts and automotive products recovered -Earnings power rose due to product portfolio improvements -Results fell short of the most-recent outlook because of sharp increases in raw materia
Slide 3: Contents
Contents I Results of FY 3/11 II Forecasts for FY 3/12 III Progress of Medium-Term Plan (FY 3/11-FY 3/14) Ⅳ Litigation Appendix
Slide 4: I. Results of FY 3/11
I. Results of FY 3/11
Slide 5: (1) Results of FY 3/11
(1) Results of FY 3/11 \ bn. FY 3/11 Previous FY 3/10 Change forecasts H1 H2 Amount ％ Feb. 2011 Net sales 318.8 169.7 170.8 340.6 +21.8 +6.8% 340.0 Operating income 11.5 10.9 9.9 20.9 +9.4 +82.1% 22.0 Ratio to sales 3.6% 6.5% 5.8% 6.1% - - 6.5% Net income 2.1 -1.9 6.1 4.2 +2.1 +98.4% 5.0 EPS (\) 2.8
Slide 6: (2) Financial Position
(2) Financial Position \ bn. Mar. 31, Mar. 31, Mar. 31, 2009 2010 2011 Total assets 443.8 438.4 443.5 Cash and deposits 10.0 10.1 22.0 Inventories 75.8 62.5 66.0 Net assets 134.0 131.1 149.8 Shareholders' equity 98.3 107.1 125.8 (Equity ratio) 22.1% 24.4% 28.4% Minority interests 35.7 24.0 24.0 Inte
Slide 7: (3) Analysis of Changes in Operating Income
(3) Analysis of Changes in Operating Income Appreciation [ FY 3/10 FY 3/11 ] Product of the yen mix (sales price) Rise -1.9 in prices +3.9 Others Volume increase +3.2 -0.7 +9.3 Raw material and fuel costs increase -4.4 20.9 11.5 FY 3/10 FY 3/10 FY 3/11 FY 3/11 (¥ bn.) Naphtha price in Japan 41 48
Slide 8: (4) Results by Segment
(4) Results by Segment \ bn. Net sales Operating income Previous FY 3/11 FY 3/11 forecasts FY 3/10 FY 3/10 Feb. 2011 H1 H2 H1 H2 Films & Functional Polymers 114.9 64.0 62.9 127.0 6.1 6.9 5.6 12.5 13.0 Industrial Materials 63.2 34.5 36.9 71.5 2.3 2.4 2.5 4.9 5.0 Life Science 32.4 14.9 16.5 31.4 4.0 1
Slide 9: 1) Films & Functional Polymers
1) Films & Functional Polymers Favorable shipments of films for touch panels and process sheets of electronics parts Brisk demand for packaging films, including a new type of heat-shrink films Increase in sales of functional polymers Net sales (¥ bn.) Operating income (¥ bn.) 127.0 114.9 12.5 (9.9%)
Slide 10: 2) Industrial Materials
2) Industrial Materials Steady growth for environmental products, such as filters for air purification Recovery of shipments for automotive products, such as airbag fabrics Expansion of production capacity of high-performance fiber “Dyneema” Net sales (¥ bn.) Operating income (¥ bn.) 71.5 63.2 4.9 (
Slide 11: 3) Life Science
3) Life Science Increase in sales of diagnostic enzymes Toyobo reverse osmosis (RO) membranes were adopted for use in one of the largest seawater desalination plants in the Middle East Decrease in volume of intermediate medicines Net sales (¥ bn.) Operating income (¥ bn.) 32.4 31.4 4.0 3.7 16.7 16.5
Slide 12: 4) Textiles
4) Textiles Focus on functional textiles businesses for sportswear and underwear fields Steady progress in its initiatives with major sports apparel companies Net sales (¥ bn.) Operating income (¥ bn.) 88.4 86.8 42.5 42.6 0.6 0.4 (0.7%) (0.5%) 45.9 44.3 0.4 0.2 0.2 0.3 H2 H2 FY 3/10 FY 3/11 FY 3/10
Slide 13: II. Forecasts for FY 3/12
II. Forecasts for FY 3/12
Slide 14: (1) Forecasts for FY 3/12
(1) Forecasts for FY 3/12 \ bn. FY 3/11 FY 3/12 (Forecasts) Change H1 H2 Amount ％ Net sales 340.6 160.0 185.0 345.0 +4.4 +1.3% Operating income 20.9 8.0 12.0 20.0 -0.9 -4.3% Ratio to sales 6.1% 5.0% 6.5% 5.8% - - Net income 4.2 2.3 4.7 7.0 +2.8 +68.5% EPS (\ ) 5.49 - - 7.89 - - Depreciation 19.1 9.0
Slide 15: (2) Analysis of Changes in Operating Income
(2) Analysis of Changes in Operating Income [Forecasts: FY 3/11 → FY 3/12] Appreciation Product of the yen Rise mix (sales price) in prices -0.5 Increase +2.0 -8.0 in volume +4.8 Others +1.1 -0.3 Raw material and fuel costs increase 20.9 20.0 FY 3/11 FY 3/11 FY 3/12 FY 3/12 (¥ bn.) Naphtha price in
Slide 16: (3) Forecasts by Segment
(3) Forecasts by Segment \ bn. Net sales Operating income FY 3/11 FY 3/12 FY 3/11 FY 3/12 Forecasts Forecasts Films & Functional Polymers 127.0 135.0 12.5 12.0 Industrial Materials 71.5 70.0 4.9 4.0 Life Science 31.4 35.0 3.7 4.2 Specialty Businesses 229.8 240.0 21.2 20.2 Operating income ratio (%)
Slide 17: III. Progress of Medium-Term Plan (FY 3/11-FY 3/14)
III. Progress of Medium-Term Plan (FY 3/11-FY 3/14)
Slide 18: (1) Targets for FY 3/14
(1) Targets for FY 3/14 Our targets: “The category leader for providing new value in the environment, life science, and high-function products fields” \ bn. FY 3 / 1 1 FY 3 / 1 2 FY 3 / 1 4 P lan R e su lt s Fo r e c ast P lan Net sales 340.0 340.6 345.0 400.0 Specialty businesses 230.0 229.8 240.0
Slide 19: (2) Strategy to Enhance Corporate Value
(2) Strategy to Enhance Corporate Value Continual reform of business portfolio focusing on growth potential, efficiency and stability Aggressive expansion of the Specialty Businesses Medium-Term Plan （FY 3/11 - 3/14） New Growth Stage ・Intensive Capital expenditures Specialty Businesses: Equity ・Gl
Slide 20: (3) Use of Proceeds
(3) Use of Proceeds Capital expenditures： ¥15 billion Films & Functional Polymers： ¥11 billion Industrial PET films for flat panel displays (FPDs), touch panels, and solar cell backsheets Functional polymers, Fine polymers Industrial Materials： ¥1 billion Airbag fabrics Life Science： ¥3 bil
Slide 21: (4) Action Plan and Progress-1
(4) Action Plan and Progress-1 Action Plan Progress (Start-up Date) 1) Capital investment (Alliances and M&A) • PET films for industrial use (H1 FY 3/14) • Modified polyolefin adhesives (H2 FY 3/12) • Biomass high-melting-point polyamides (H2 FY 3/11) • Coater equipment for process sheets of ele
Slide 22: (4) Action Plan and Progress-2
(4) Action Plan and Progress-2 Action Plan Progress 3) Improvement in • Industrial PET films for use in touch panels, the product portfolio solar cell backsheets, and other products • Biomass high-melting-point polyamide resin for LED reflectors • A new type of shrink films • A recyclable coated
Slide 23: IV. Litigation
IV. Litigation
Slide 24: Progress of Litigation regarding Body Armor Using ZYLON Fiber
Progress of Litigation regarding Body Armor Using ZYLON Fiber 1) In June 2003, an accident with body armor (BA) using Zylon fiber occurred in Pennsylvania, USA. (This is the only accident in which a bullet penetrated BA.) 2) The injured/deceased persons and purchasers of the same type of BA sued the
Slide 25: Appendix
Appendix
Slide 26: Appendix: Business Fields
Appendix: Business Fields Electronics & Fields: Automotive Information Environment Life Science Lifestyle & Display Safety Business Segments • PET films for flat • PET films for panel displays photovoltaic ・Packaging Films & •Engineering plastics backsheets films Functional •Biomass high-melting-poi
Slide 27: Please Note
Please Note The business performance forecasts and targets included in the business plans contained in this presentation are based on information known to the Company’s management as of the day of presentation. Please be aware that the content of the future forecasts may differ significantly from ac