Slide 1: Financial Results for the fiscal year ended March 2016
Financial Results for the fiscal year ended March 2016 FP Corporation May 12, 2016 FP Corporation ・
Slide 2: Table of Contents
= Table of Contents = Results and Plan Head of Finance and Accounting Division Isao Ikegami ... 3 Working Towards Medium- and Long-Term Targets Chairman & CEO Yasuhiro Komatsu . . . 13 For Expansion of Corporate Value President & COO Morimasa Sato . . . 25 Supporting Data . . . 39 Cautions f
Slide 3: Consolidated Financial Results for the fiscal year ended March 2016
Consolidated Financial Results for the fiscal year ended March 2016 Head of Finance and Accounting Division Isao Ikegami FP Corporation ・
Slide 4: Financial Results Summary
Financial Results Summary (Results for the FY ended March 2016 ) Results for Full year Full year projections FY ended March 2015 FY ended March 2016 FY ended March 2016 Increase / Year-on- Progress Unit:million yen P erformance Percentage P erformance Percentage decrease year Quantity P lanned Perce
Slide 5: Increase/Decrease in Ordinary Income
Increase/Decrease in Ordinary Income (Results for the FY ended March 2016 ) Unit: billion yen FY ended Mar.2015 ¥10.11bn 1st half 2nd half 1st half ¥4.74bn 2nd half ¥5.36bn Difference from projection +1.6 Raw material +3.1 +1.5 +0.3 ・ Naphtha Formula －1.1 -03,-0.8 +0.55 Naphtha Formula ▲0.2 Sales Ef
Slide 6: Capital Investments and R&D cost
Capital Investments and R&D cost (Results for the FY ended March 2016 ) Results for Full year Full year projections FY ended March 2015 FY ended March 2016 FY ended March 2016 Increase / Year-on- Progress Unit : million y en Performance Performance decrease year Planned rate Tangible fixed assets 23
Slide 7: Balance Sheet
Balance Sheet (Results for the FY ended March 2016 ) Previous consolidated fiscal Consolidated fiscal year under review year FY ended March 2015 FY ended March 2016 Increase/ Year-on- Breakdown of main increases and decreases ( As of March 31,2015 ) ( As of March 31,2016 ) Unit: million y en decreas
Slide 8: Cash Flows
Cash Flows (Results for the FY ended March 2016 ) Results for Full year FY ended March 2015 FY ended March 2016 Unit: million y en Performance Performance Breakdown of Main Items Income before income taxes 13,753 Depreciation 9,526 Decrease in inventories 3,058 CF from operating activities 16,912 20
Slide 9: Plan for the fiscal year ending March 2017
Plan for the fiscal year ending March 2017 FP Corporation ・
Slide 10: Outline of Plan for Account Settlement
Outline of Plan for Account Settlement (Plan for the FY ending March 2017 ) Results for Full year Full year projections First half projections FY ended March 2016 FY ending March 2017 FY ending March 2017 Unit:million yen Performance Percentage Planned Percentage Increase /decrease Year-on-year Plan
Slide 11: Planned Increase/Decrease in Ordinary Income
Planned Increase/Decrease in Ordinary Income (Plan for the FY ending March 2017 ) Unit: billion yen FY ended Mar. 2016 ¥14.03bn 1st half 2nd half 1st half ¥6.63bn 2nd half ¥7.4bn Raw Materials +1.8 +1.5 +0.3 ・ Naphtha Formula - 1.6 -0.75,-0.85 +0.3 Sales Efforts +0.7 ・ Original Products, MIX improve
Slide 12: Planned Capital Investment and R&D Cost
Planned Capital Investment and R&D Cost (Plan for the FY ending March 2017 ) Results for Full year Full year projections First half projections FY ended March 2016 FY ending March 2017 FY ending March 2017 Unit : million y en Performance Planned Increase /decrease Year-on-year Planned Increase /decr
Slide 13: Working Toward Medium-Term Targets
Working Toward Medium-Term Targets Chairman & CEO Yasuhiro Komatsu FP Corporation 13・
Slide 14: Summary of Consolidated Financial Results and Forecast for the Future
Summary of Consolidated Financial Results and Forecast for the Future >> Product Strategy >> Strategic Investments > Creating markets with original products > Increasing production capacity and recycling Multi FP (MFP), Multi Solid (MSD) terrestrial resources Biaxially stretched PET (OPET) Chu
Slide 15: Product Strategy: Expansion of original products
Product Strategy Expansion of original products and development of high value-added products Original products > Increase sales ratio to improve and stabilize earnings Annual Sales Multi FP (MFP) Microwavable foamed PS containers Changes in sales mix Multi Solid (MSD) Non-foamed PS containers produc
Slide 16: Original products - a proposal for an inner tray
Product Strategy Original products - a proposal for an inner tray Expanding and creating markets Container + Lid + Inner Tray “A proposal for deliciousness” MFP Doris Cup Deep heat-resistant container Superior thermal insulation seven A total of models marketed Safe and easy to hold Container: MFP a
Slide 17: Environmentally-friendly products: Eco Tray, Eco APET
Product Strategy Environmentally-friendly products - Recycling terrestrial resources In response to COP21 and the Paris Agreement Choose now for the future Eco Tray Eco APET CO2 reduction effect: CO2 reduction effect: CO2 emissions cut by 100,000 tons * Comparison between FPCO’s virgin products and
Slide 18: General-purpose products - Solidifying competitive advantage
Product Strategy General-purpose products - Solidifying competitive advantage Increasing sales of general-purpose products and cutting their costs Differentiation of selling spaces Workability at stores improved by changing tray colors with snap-lock lid packs Reduction of labor for packing Heat and
Slide 19: Logistics Strategy
Logistics Strategy Attempt toward a 2.5 trillion yen market Curbing increases in logistics costs and ensuring stable supply Fukuyama Cross Dock Center Emergency power Hachioji Distribution Center In operation since Aug. 2014 generating equipment Second phase of construction finished in Sep. 2015 Loc
Slide 20: Strategic Investments
Strategic Investments Improving performance of original products + Ensuring stable supply Chubu Eco PET Plant In operation since Mar. 2016 Hachioji Distribution Center Emergency power-generating equipment Five stories above ground Three stories above ground Second phase of Total floor area: 23,700 t
Slide 21: Chubu Eco PET Plant
Chubu Eco PET Plant Eco Integrated production covering the processes of APET Collection Recycling Production of environmentally friendly products Collected PET trays PET flakes Sheet extrusion and forming Eco APET products Collected PET bottles Sheet Air feed extrusion Production capacity: Product f
Slide 22: Automation
Automation Labor shortage Improvement in productivity + Labor saving Increase in production and shipping quantities Response to busy seasons Industrial robots Case packing robot Voice picking system Case former Automated packing machine Operated at six major facilities to curtail 20% of all th
Slide 23: Medium-Term Targets
Ordinary Medium-Term Targets Margin: 12% Increase market share in the market of 500 billion yen Products: Products sales 200 bn. 131.0 The world’s first sheet material Create new markets 115.1 118.4 122.2 126.3 billion yen Continuous release of new products M&A Global market Increase FP C
Slide 24: FP Corporation
FP Corporation ・
Slide 25: For Expansion of Corporate Value
For Expansion of Corporate Value President & COO Morimasa Sato 25
Slide 26: Market Conditions
マーケットの状況 Market Conditions Circumstances surrounding the retail industry Despite current brisk sales, food supermarkets are concerned about the Society future. - The number of Division in households is growing Rise in purchase unit consumer spending Labor shortage and amid the shrinkage of prices an
Slide 27: Home Meal Replacement (HMR) Market: Today and Tomorrow
Home Meal Replacement (HMR) Market: Today and Tomorrow Major food manufacturers Cooking HMR Approx. Eating out at home 9 trillion yen Approx. 24 Approx. trillion yen - Take-out 35 trillion yen - Increase in two-income - Home delivery households - Increasing in single- person households - Aging Sourc
Slide 28: Proposals of Deliciousness
Capabilities for Development and Proposals to Create Markets Proposals of Deliciousness Use of inner trays Fresh microwave deli Bringing the good flavors of fresh meals home Delivering the taste of raw food ingredients with the use of inner trays that can be enjoyed after microwaving Without inner t
Slide 29: New Products that Respond to Market Needs
New Products that Respond to Market Needs Enhanced Workability Increased Product Value Sashimi▸Limiting the movement of content in transit Salad▸Inner trays maintain freshness Reducing the workload at stores Kakomi Sarawaku Functions B&H AP Vege Box Materials Hot prepared food▸Easy to work with and
Slide 30: Trends of Capital Investment
Trends of Capital Investment Continuing to make investment aimed at expanding corporate value 2011 2012 2013 2014 2015 2016 2017 Results Plan Unit: billion yen 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 6periods total 2017/3 Total sum Production 3.4 6.0 5.9 3.9 9.5 13.1 41.8 14.7 56.6 Logistics 2.5 1
Slide 31: Boosting the production capacity of original products
Capital Investment > Products 41.8 billion yen invested in manufacturing in a six-year period Boosting the production capacity of original products 2011 2012 2013 2014 2015 2016 Nov. 2010 Chubu PET Recycling Plant Jun. 2014 Fall 2017 Kanto Eco PET Plant Nishinihon PET-Bottle Recycle Co., Ltd. Mar. 2
Slide 32: Chubu Eco PET Plant: Completed in Mar. 2016
Capital Investment > Products Chubu Eco PET Plant: Completed in Mar. 2016 Eco Integrated production covering the processes of APET Collection Recycling Production of environmentally friendly products Collected PET trays PET flakes Sheet extrusion and forming Eco APET products Collected PET bottles S
Slide 33: Capital Investment > Logistics
Capital Investment > Logistics Investing 35.5 billion yen in logistics during a six-year period Curbing increases in logistics costs and ensuring stable supply 2011 2012 2013 2014 2015 2016 Fukuyama XDC Emergency power- Chubu expansion Kyushu expansion generating equipment July 2013 Warehouse in Aug
Slide 34: Aggressive IT Management
Aggressive IT Management Construction of a system with greater speed and accuracy <Effect of the RD Check System> <1> Vehicle allocation planning system (Route Planner) Difference between the scheduled delivery time and the actual delivery time ▸ Effective delivery plan 100% 90% 86.8% 80% 75.0% 75.1
Slide 35: Business Continuity Plan (BCP)
Business Continuity Plan (BCP) “Stable supply in the event of a disaster” All of the 21 logistics facilities nationwide will be equipped with emergency power generating equipment. Ensuring 72 hours of power supply with fuel stored: Helping customers to continue their business activities Completi
Slide 36: Recognition for IT/ESG Initiatives
Recognition for IT/ESG Initiatives Year Logo Achievement Organizer Details Environment Minister’s Award for The Ministry of the Environment honors individuals and organizations with distinguished Global Warming Prevention achievements in the prevention of global warming as part of its initiative for
Slide 37: Strategic investment for one step further
For Expansion of Corporate Value Strategic investment for one step further Hardware Software System / Technology Operation R&D FPCO-DNA Human Information Reliably delivering as needed the highest qulity products at the most competitive price FP Corporation 37
Slide 38: Slide 38
Slide 39: Supporting Data
Supporting Data FP Corporation ・
Slide 40: Raw Material Trends
Raw Material Trends FY ending Mar 2016 No obvious price competition Prices revised in line with naphtha in FY ended Mar 2014 FY ended Mar 2015 some cases Even with companies announcing revised Other companies again announced prices, other companies increased revised prices volumes Price co
Slide 41: World's First Sheets and Materials
World’s First Sheets and Materials Evolution from a sheet processing manufacturer PP: polypropylene PS: polystyrene PSP: foamed polystyrene Easy to mold Heat-resistant: +110ºC Low raw material ratio High oil resistance Weight reduction is possible Foam is hard and resistant to High ins
Slide 42: Factors influencing Ordinary Income
Factors influencing Ordinary Income Unit:100 million yen '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 Plan '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full 1st 2nd Full half half year half half year h
Slide 43: Trends in Capital Investment and R&D Costs
Trends in Capital Investment and R&D Costs FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ended M arch FY ending M arch 2003 2004 2005 2
Slide 44: Initiatives to Market
Initiatives to Market Products Market size: ¥500 billion Goods Market size: Over ¥2.5 trillion Containers for simple packaging Supplies and packaging materials/equipment In stores Packaging outside stores Retail / Ready-made Meals / Restaurant Dining Agricultural Processed Fresh fish Prepared Livest
Slide 45: Information on the Facility Tour
【 Information on the Facility Tour 】 Contact: Takashima at the Corporate Planning Department (TEL)+81-3-5325-7756 (MAIL)ir_7947@fpco-net.co.jp at a convenient time for you. An opportunity to take a look at the state-of-the-art Production, Distribution, Recycling operations Kanto 30 minutes from Koga
Slide 46: Awards and Recognition
December 2015 Awarded the Minister of the Environment’s 2015 Commendation for Global Warming Prevention Activity http://www.env.go.jp/earth/ondanka/min_award/h27_pamph/ref-hyousho1.pdf May 2015 Selected as a Competitive IT Strategy Company in the program launched jointly by the Ministry of Economy,