Unicharm Corporation · TSE:8113
Unicharm — Q3 2018 Earnings Presentation
22 slides from Unicharm's earnings presentation, Nov 5, 2018
Slide 1: Third Quarter of Fiscal Year Ending December 31, 2018 Financial Performance
Third Quarter of Fiscal Year Ending December 31, 2018 Financial Performance Unicharm Investor Meeting Presentation Materials November 5, 2018 Takahisa Takahara President and CEO Unicharm Corporation Projections stated in these materials include those based on the Company’s currently obtained assumpt
Slide 2: Financial Performance Summary: Third Quarter, document notations
Financial Performance Summary： Third Quarter of Fiscal Year Ending December 31, 2018 ◆ Document notations BC： Baby Care Business FC： Feminine Care Business HC： Health Care Business C&F：Clean & Fresh Business PC： Pet Care Business Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rig
Slide 3: Financial Results Summary
Third quarter of fiscal year ending December 31, 2018 Financial Results Summary Consolidated results (New record high established) Sales of 498.1 billion JPY (32.5 billion JPY/7.0% increase), core operating income 75.8 billion JPY (9.2 billion JPY/13.8% increase). Significant improvement of co
Slide 4: Consolidated account highlights
32.5 Billion JPY Sales Increase (+7.0%), 9.2 Billion JPY Core Operating Income Increase (+13.8%) Both New Record Highs Steady progress toward to Net Sales and Income Forecast for yearly Accumulated Results Forecast Consolidated account highlights (Millions of yen) 3Q of FY (Forecast) 3Q of FY Achi
Slide 5: Core operating income fluctuation
Through continuous marketing investment effects, realized improvement of product mix and increase sales volume. And reduction of promotion expenses absorbed the rise of raw material prices. Core operating income margin increased by 9.2 billion JPY Core operating income fluctuation (100 millions of
Slide 6: Geographical segment information
For Japan, BC cross-border continued high growth and other businesses developed favorably. For Asia , profitability improved in principal countries such as China, Thailand, and Indonesia Geographical segment information (Millions of yen) *1 3Q of FY 3Q of FY (Ref.) Difference Ended Dec. Ending Dec
Slide 7: Core operating income margin by geographical segment
Exposed by the rise of raw material prices, For Japan, with export expansion and advancement of high value-added needs, high profitability was sustained For Asia, profitability improved steadily in principal countries Core operating income margin by geographical segment 25.0% *1 Japan Asia Others
Slide 8: Business Segment Information
For Personal care, FC growth mainly in China For PC, Asia market growth led by use of Japanese technology Business Segment Information (Millions of yen) 3Q of FY 3Q of FY Difference Ended Dec. Ending Dec. Difference (%) 31, 2017 31, 2018 Net sales 403,877 434,760 +30,883 +7.6% Personal Care Core o
Slide 9: Domestic / overseas sales
Overseas sales composition ratio 60.2% （60.4％ excluding exchange effects） Domestic / overseas sales (Billions of yen) 900 *2 70% 64.4% 64.0％ 800 61.7% 62.5％ 57.2% 58.1% 700 60% 59.6% 60.2% 50.4% 49.3% 600 46.0% 50% 43.2% 43.3% 44.2% 42.0% 500 36.5% 40% 400 30% 300 20% 200 100 10% 0 0% '12/3Q '13/3
Slide 10: Effects of exchange fluctuations
Effects of exchange fluctuations Approx. 3.2 billion yen decrease in sales Approx. 0.1 billion yen increase in core operating income Rate fluctuations by currency Exchange rate Exchange rate Currency Change in rate Jan-Sep 2017 Jan-Sep 2018 China (CNY) 16.47 16.85 +2.3% Indonesia (IDR) 0.0084 0.00
Slide 11: Fiscal Year Ending December 31, 2018 Earnings Forecast
Fiscal Year Ending December 31, 2018 Earnings Forecast Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 12: Consolidated earnings forecast
Continuance strong results in sales also 4Q, but aggressive investing in marketing cost toward next FY and due to greater raw material price changes than expected, initial performance forecasts were deferred Consolidated earnings forecast (Millions of yen) *1 FY Ended FY Ending (Reference) Differe
Slide 13: Shareholder Return Policy
Shareholder Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 14: Shareholder return policy
Total return ratio of 50% scheduled in FY 2018 Dividends increase and purchase of own shares 15.5 billion JPY Shareholder return policy (Millions of yen) 60% Dividends Purchase of own shares Total return ratio 35,000 50% 50% 30,000 25,000 40% 20,000 30% 15,000 20% 10,000 10% 5,000 0 0% '10/3 '11/3
Slide 15: Dividends per share
Steady and continuous dividend payments increase, on track for 17 consecutive periods of increased dividends Raise dividend payout ratio in stages Dividends per share (JPY) Annual dividend (JPY) Consolidated divident payout ratio 35% 30 30% Approx. 24% 25% 20 20% 15% 24 10 20 10% 15 16 13 13 11 11
Slide 16: Raising Corporate Value
Raising Corporate Value Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 17: Initiatives to achieve a Cohesive Society and resolve key challenges
Through our initiatives to achieve Unicharm’s envisioned “Cohesive Society”, resolve important issues and achieve sustainable growth SustainableDevelopment Goals (SDGs) Unicharm’s Key Challenges 1. Lengthening Healthy Life Expectancy 4. Contributing to the Community 2. Supporting Women's Independenc
Slide 18: Lengthening healthy life expectancy
Lengthening healthy life expectancy ◆Supporting healthy life expectancy with “Lifree” ◆ Implementation of “Dementia Supporter* Training Course” Contributing to lengthening healthy life expectancy Learn the importance of promoting social with Lifree “Social Walking”* contribution activities for b
Slide 19: Supporting women's independence and improving hygiene in emerging countries
Supporting women's independence and improving hygiene in emerging countries ◆Efforts to eliminate “I can't go to school because I am menstruating” Expansion of first menstruation educational programs in India, Indonesia, and Myanmar Lecture on first menstruation educational programs for developi
Slide 20: Contribution to Environmental and Sustainability Possibilities
Contribution to Environmental and Sustainability Possibilities ◆Activities towards recycling disposable diapers Unicharm’s aimed diaper recycling model We treat low-quality pulp with our unique ozone process after extracting it from used disposable diapers. This has made it possible to break d
Slide 21: Contributing to the Community
Contributing to the Community ◆Contributing to the “Support of Disaster-Affected Areas” Continuing the Matching Fund* which combines Disaster-Affected Area Support and energy-saving initiatives Sales of “Super Coolbiz 2018” 4,014 thousand JPY, Utilize donation to the "Michinoku Mirai Fund" that
Slide 22: Copyright Corporation. All rights
Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 22