Unicharm Corporation · TSE:8113
Unicharm — Q2 2021 Earnings Presentation
47 slides from Unicharm's earnings presentation, Aug 4, 2021
Slide 1: Unicharm Investor Meeting Presentation Materials
Second Quarter of Fiscal Year Ending December 31, 2021 (January 1, 2021 to June 30, 2021) Unicharm Investor Meeting Presentation Materials August 4, 2021 Takahisa Takahara President and CEO Unicharm Corporation Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. r
Slide 2: Financial Performance Summary
Second Quarter of Fiscal Year Ending December 31, 2021 (January 1, 2021 to June 30, 2021) 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 d
Slide 3: Financial Results Summary
Second Quarter of Fiscal Year Ending December 31, 2021 (January 1, 2021 to June 30, 2021) Financial Results Summary Sales 377 billion JPY (YoY +5.7%) Consolidated Core operating income 61.8 billion JPY (YoY +11.7%) Sales and all profit categories hit a record high. Performance steadily improved
Slide 4: Consolidated account highlights
2Q Cumulative achieved a new record high Consolidated account highlights (100 millions of yen) (Forecast) (from Jan. to June) 2Q of FY 2Q of FY FY Achievement Ended Dec. Ending Dec. gap(yen) gap(%) Ending Dec. 31, 2020 31, 2021 31, 2021 Net sales 3,566 3,770 +204 +5.7% 7,700 49.0% Core operating i
Slide 5: Stable growth in sales and profits compared to pre-COVID-19
Stable growth in sales and profits compared to pre-COVID-19 pandemic in 2019 Sales trend (quarterly) Core operating income trend (quarterly) (100 millions of yen) (100 millions of yen) 1,949 1,930 338 314 1,895 303 304 291 1,838 250 256 1,822 1,820 214 1,779 201 191 1,739 1,728 1,686 1Q 2Q 3Q 4Q
Slide 6: Core operating income fluctuation
6.5 billion JPY increase in profit due to sales increase affected by volume increase by aggressively investing in marketing expenses in China and Japan (100 millions of yen) Core operating income fluctuation (from Jan. to June) 618 553 -4 -23 -22 -13 +15 +30 +82 Sales Logistics Other Materials, Pr
Slide 7: Geographical segment information
Japan maintains favorable conditions in Wellness Care Business and Pet Care Business In Asia, China drove sales growth, and recovery was seen in South East Asia Geographical segment information (100 million yen) 2Q of (from Jan. to June) 2Q of FY (Ref.) FY Ended Difference Ending Dec.31, Differenc
Slide 8: 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 63.1％ 46.7％ Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 8
Slide 9: Core operating income margin by geographical segment
Consolidated core operating income margin reached a new high due to product mix increase in high profitability segments Core operating income margin by geographical segment * Japan Asia Others Consolidation 21.4% 20.5% 20.6% 19.3% 13.8% 15.5% 16.4% 14.5% 14.8% 11.5% 14.2% 12.9% 12.2% 11.1% 11.5% 7
Slide 10: Business Segment Information
Feminine and Baby Care business drove Personal Care Business Strong sales in Pet Care Business in Japan, Recovery trend in North America, Increased investment in Asia Business Segment Information 2Q of 2Q of (100 million yen) (from Jan. to June ) FY Ended FY Ending gap (yen) Gap (%) Dec.31. Dec. 3
Slide 11: Impacts of foreign exchange fluctuations
Impacts of foreign exchange fluctuations: Approx. 7.5 billion JPY increase in sales and approx. 1.2 billion JPY increase in core operating income Rate fluctuations by currency （Jan. to Jun. average rate） Exchange rate for 2Q of Exchange rate for 2Q Currency FY ended December 31, of FY ending Rate
Slide 12: Mid- and long-term strategies and financial goals (2023 and 2030)
Mid- and long- term strategies and financial goals (2023 and 2030) Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 13: Outline of key strategies for continuing growth
Outline of key strategies for continuing growth with SDGs as Purpose toward 2030 WC Wellness Care Business PC Pet Care Business • Accelerated expansion in Asia • Premiumization promotion with the care model which has the • Creation of new markets in top share in Japan market North America • Concentr
Slide 14: FY2023 Target
FY2023 Target Overseas New Entry HC market Sales Ratio Achieve 10% market share Key cities in China 2023：65％ （including expansion Top Market Share (2030：70％) to Africa） Ratio of national staff Ratio of female in in management position management position General Manager：65％ Group:30％ Japan ：18％ HQ f
Slide 15: Sustainable growth strategy with SDGs as Purpose
‘Sustainable growth strategy’ with SDGs as Purpose Kyo-Sei Life Vision 2030 Mid-term Management Plan Sales COPM (2021-2023) CAGR ＋6.8% 17% Sales COPM* CAGR＋6.9% 15.5% 2030 2023 Sales Sales 880 billion JPY 1.4 trillion JPY * COMP means core operating income margin Copyright Copyright (c) (c) Unicharm
Slide 16: Shareholders Return Policy
Shareholders Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 17: Shareholders return policy
Through the payment of dividend linking to the business performance and buy-back of our own shares, we are aiming for total return ratio of 50% in 2021 Shareholders return policy (100 million yen) 80% Dividends Purchase of own shares Total return ratio 600 500 60% 50% 400 40% 300 200 20% 100 0 0%
Slide 18: Dividends per share (JPY)
Dividend per share Plan to increase dividend for 20 consecutive years (36 yen a year) Dividends per share (JPY) 36.0 32.0 28.0 24.0 20.0 14.8 16.0 9.3 10.7 11.3 12.7 12.7 * '11/3 '12/3 '13/3 '14/3 '14/12 '15/12 '16/12 '17/12 '18/12 '19/12 '20/12 '21/12E * Irregular accounting period of 9 months Co
Slide 19: Share buy-back history
Purchase of own shares worth 16 billion JPY (3.62 million shares) as initially planned Share buy-back history 155 160 150 140 140 130 120 110 90 76 80 72 '11/3 '12/3 '13/3 '14/3 '14/12* '15/12 '16/12 '17/12 '18/12 '19/12 '20/12 '21/12E * Irregular accounting period of 9 months Copyright Copyright
Slide 20: 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 21: Kyo-sei Life Vision 2030
Formulating Med-to-Long Term ESG Objectives “Kyo-sei Life Vision 2030" ◆ 20 key themes with the goal in 2030 21 Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved.
Slide 22: Kyo-sei Life Vision 2030: 20 key themes
Formulating Med-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 Safeguarding
Slide 23: Key initiatives, indicators, and target values: individuals
Key initiatives, indicators, and target values ◆Safeguarding the well-being of individuals Key initiatives Indicators Target value Target year Our aim is to provide products and services that contribute to the realization of a society where all people can have a sense of individuality and enjoy thei
Slide 24: 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 Expand toward 2030 Lifree Rihabili-Pants was released in 1995 Rollout of products and service
Slide 25: Activities tailored to national and regional characteristics
(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 Expand do not restrict people’s activities toward 2030 Rollout of products and se
Slide 26: New value proposition tailored to national and regional characteristics
(Safeguarding the well-being of each individual) New value proposition tailored to national and regional characteristics ◆Shorts-shaped pad that integrates a pad and ◆SOFY Hot “Dan” ℃, a heating napkin featuring underwear warm sensation during menstruation Mildly Warm Strongly Warm ◆Cool napkin feat
Slide 27: Support everyday health of partner animals (pets)
(Safeguarding the well-being of each individual) Support everyday health of partner animals (pets) and the mind of owners with original technology ◆Coexistence with partner animals (pets) Expand toward 2030 Rollout of products and services that enable partner animals (pets) to be welcomed by people
Slide 28: Support improvement of childcare environment
(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 Expand toward 2030 Rollout of products and services that enable happy and healt
Slide 29: Capital and business alliance with First Ascent Inc.
(Safeguarding the well-being of each individual) Capital and business alliance with First Ascent Inc.* to create a moving experience that enables understanding babies’ feelings and comfortably enjoy childrearing ◆Establish partnership with First Ascent inc. to develop disposable baby diaper based on
Slide 30: Protect everyday health and support safe living
(Safeguarding the well-being of each individual) Protect everyday health and support safe and comfortable living ◆Improvement of public hygiene Expand toward 2030 Rollout of products and services that support the efforts of each one of us to reduce the spread of infectious diseases ◆Boost high value
Slide 31: Key initiatives, indicators, and target values: society
Key initiatives, indicators, and target values ◆Safeguarding the well-being of society Key initiatives Indicators Target value Target year Our aim is to provide products and services that not only improve the safety, security, and satisfaction of our customers, but also contribute to solving social
Slide 32: Innovations to achieve NOLA & DOLA
(Safeguarding the well-being of society) Rollout 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” Expand toward 2030 Rollout of products and services that contribute to liberati
Slide 33: Key initiatives, indicators, and target values: planet
Key initiatives, indicators, and target values ◆Safeguarding the well-being of our planet Key initiatives Indicators Target value Target year Our aim is to provide products and services that are sanitary and convenient, as well as contribute to activities that improve our planet’s environment. Devel
Slide 34: Set Eco Plan 2030
(Safeguarding the well-being of our planet) Set 「Eco Plan 2030」 ◆「“0” waste plastic, “0” CO2 emission, “0” natural forest destruction」 in 2050 Environmental issues Implementation items Baseline year 2030 targets 2050 vision Responding to the Reducing usage in relation to packaging 2019* Per unit of
Slide 35: Initiatives for safety and environmental consideration
(Safeguarding the well-being of our planet) Initiatives for safety and environmental consideration ◆Development of eco-friendly products 2030 Target More than 10 cases Number of products and services that implement 3Rs + 2Rs based on unique approach ◆Launch in Taiwan baby wipes using an organic cott
Slide 36: Switch to green electric power
(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% Percentage of renewable electric power used for business operation ◆Switch to green electric power generated by r
Slide 37: Recycle used paper diapers
(Safeguarding the well-being of our planet) Reduce waste disposal cost and environmental burden through recycling used paper diaper ◆Expand our line of recycle models 2030 Target More than 10 cases Number of disposable paper diaper recycling facilities introduced ◆Keep it safe and convenient, toward
Slide 38: Used disposable diaper recycling using ozone-treatment
(Safeguarding the well-being of our planet) The world’s first* “used disposable diaper recycling using the ozone-treatment technology” ◆Realized the recycling of used disposable diaper by water-soluble crushing, segregating, and washing with ozone treatment Used Superabsorbent dirty disposable polym
Slide 39: Demo-project of diaper collection in Tokyo
(Safeguarding the well-being of our planet) Started a demo-project of collection and transportation methods in Tokyo metropolitan area to promote the recycling of used disposable diapers ◆ Started demo-trial for separation and collection of used disposable diapers in association with the municipalit
Slide 40: Illustrated guide to recycling Unicharm disposable diapers
(Safeguarding the well-being of our planet) Released “An illustrated guide to recycling Unicharm disposable diapers” to promote recycling used disposable diapers ◆Explain graphically how used diapers are not garbage with four-step "Study Notes" that can be used as a material of independent research
Slide 41: Key initiatives, indicators, and target values: principles
Key initiatives, indicators, and target values ◆Unicharm Principles Key initiatives Indicators Target value Target year Our aim is to pursue fairness and transparency in order to establish and retain stakeholder trust. Management practices that Construct a workplace of health and occupational Highes
Slide 42: Promotion of diversity management
(Unicharm Principles) Strengthen initiatives toward women empowerment ◆Promotion of diversity management Percentage of women in management Japan Outside of Japan 2030 Target Over 30% The ratio of female employees in managerial positions by providing various opportunities to female employees ◆Joined
Slide 43: Evaluation by external organizations and coordination with them
Evaluation by external organizations and coordination with them Selected in 4 ESG investment indices of stock composites adopted by GPIF Integrated Index Thematic Index E S G Other SRI Index 43 Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All righ
Slide 44: Evaluation by external organizations and coordination with them
Evaluation by external organizations and coordination with them Science Based Target JCI FSC® （Japan Climate Initiative） （Forest stewardship council®） Rolled out the best practices for advanced group as a startup In June 2018, the company was member Preferential use of the pulp which cle
Slide 45: Evaluation by external organizations and coordination with them
Evaluation by external organizations and coordination with them RSPO SOMPO Sustainability Sedex Index Started using certified palm oil (Mass Efforts related to ESG were highly valued Joined as AB member toward the Balance) in 2018 with the aim of and we were selected in stock composites
Slide 46: Evaluation by external organizations and coordination with them
Evaluation by external organizations and coordination with them Won a special prize in Certified as Sports Yell Won Outstanding Merit Award at Environment Sustainable Company 2021 by Japan Sports the 37 Corporate Communication Corporate category of the 2nd Agency Award ESG Finance Awards Japan
Slide 47: We support the Sustainable Development Goals (SDGs)
We support the Sustainable Development Goals (SDGs) Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved.