Unicharm Corporation · TSE:8113
Unicharm — Q1 2018 Earnings Presentation
23 slides from Unicharm's earnings presentation, May 9, 2018
Slide 1: Unicharm Presentation Materials for Investor Meeting, First Quarter FY2018
First Quarter of the Fiscal Year Ending December 31, 2018 Unicharm Presentation Materials for Investor Meeting May 9, 2018 Takahisa Takahara President and CEO Unicharm Corporation Projections stated in these materials include those based on the Company’s currently obtained assumptions, forecasts and
Slide 2: Financial Performance Summary: First Quarter of the Fiscal Year Ending December 31, 2018
Financial Performance Summary: First Quarter of the 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
Slide 3: Financial Performance Summary
Fiscal Period Year Ending Dec. 31, 2018: First Quarter Financial Performance Summary Consolidated results (New record high established) Sales of 160.9 billion JPY (10% increase, increase by 14.7 billion JPY), core operating profits 24.7 billion JPY (31.6% increase, increase by 5.9 billion JPY).
Slide 4: Consolidated account highlights
Net Sales increase of 10.0%, 14.7 billion yen, Core Operating Profit increase of 31.6%, 5.9 billion which are both record highs Both net sales and core operating income steadily progressing favorable compared to forecast Consolidated account highlights (Millions of yen) 1Q 1Q (Forecast) Difference
Slide 5: Core operating income fluctuation
Qty. Increase and product mix improvement due to effects of aggressive marketing investment drove down raw material price fluctuation etc. and Core operating profit increased by 5.9 billion JPY Core operating income fluctuation (100 millions of yen) Selling and administrative Gross profit rate exp
Slide 6: Geographical segment information
In Japan, BC cross-border EC continue to rapidly grow and other personal care business and PC are continuously favorably In Asia, Thailand, China and Indonesia etc. profitability improved Geographical segment information (Millions of yen) *1 1Q 1Q (Ref.) Difference of FY Ended of FY Ending Differe
Slide 7: Core operating profit margin by geographical segment
In Japan, maintaining profitability by promoting high value-added products and expanding exports In Asia, improving profitability in main countries due to favorable performances by China FC and Thailand FC Core operating profit margin by geographical segment 25.0% ※1 Japan Asia Others Consolidated
Slide 8: Business Segment Information
For Japan PC, favorably progress mainly in toiletry product For North America PC, although sales of main product decreased due to climate impact but was able to improve profitability due to conducting product mix Business Segment Information (Millions of yen) 1Q 1Q Difference of FY Ended of FY End
Slide 9: Domestic / overseas sales
Overseas sales composition ratio 61.3% （61.4％ excluding exchange effects） Domestic / overseas sales (Billions of yen) 90% 250 80% ※2 62.7％ 64.9％ 70% 200 70.1% 60% 64.1% 60.2% 61.1% 60.9% 61.3% 150 50% 53.9% 54.2% 48.8% 40% 44.6% 43.8% 44.0% 45.6% 100 39.4% 30% 20% 50 10% 0 0% '12/1Q '13/1Q '14 /1Q
Slide 10: Effects of exchange fluctuations
Effects of exchange fluctuations Approx. 400 million yen decrease in sales Approx. 20 million yen increase in core operating profit Rate fluctuations by currency Exchange rate Exchange rate Currency Change in rate Jan-Mar 2017 Jan-Mar 2018 China (CNY) 16.57 17.05 +2.9% Indonesia (IDR) 0.0085 0.008
Slide 11: Shareholder Return Policy
Shareholder Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 12: Shareholder return policy
Total return ratio of 50% scheduled in FY 2018 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 '12/3 '13/3 '14/3 '14/12※1 '15/12 '16/12 '17/12 '18/12E *1: Fi
Slide 13: Dividends per share
Steady and continuous dividend payments, 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 5% 9 8 0
Slide 14: Raising Corporate Value
Raising Corporate Value Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 15: Resolve social issues, raise Earning Potential and promote cohesive society
With 6 types of UC-style capital, as we work to resolve social issues, raise “Earning Potential” and promote “Realizing a cohesive society” 15 Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved.
Slide 16: Environment: Recycling model and eco-friendly products
Environment Promoting a recycling model in collaboration with local groups Aiming to create products that are environment- friendly throughout their life-cycles Waste reduction Recycling system in development by Unicharm ・Sorting ・Resource-saving ・Energy-saving (fecal matter in From hospitals and ・F
Slide 17: Environment: Efforts to reduce waste in Japan and overseas factories
Environment Efforts to reduce waste in Japan and overseas factories Reduction of Waste Disposal Paper cat Waste generated from other liter Waste generated from Unicharm Factories than Unicharm Factories Product loss Dust pulp / Paper dust Product trim Paper tube Used paper / Waste paper Deo Sand (ca
Slide 18: Reducing Environmental Impact and Promoting Environmental Conservation
Environment Reducing Environmental Impact and Promoting Environmental Conservation for Building a Sustainable Society Efforts to Reduce CO2 Emissions in Japan through Products Examples of Eco Charming products ８０％ Eco-charming product is defined as top products that further promotes adaptation t
Slide 19: Social: Social contributions using Unicharm's positive image
Social Engage in social contributions that make use of Unicharm’s positive image to increase number of UC fans ◆BC Achieving an ideal child-rearing environment for ◆FC Changing women’s “discomfort” during parents and children menstruation into “comfort” ◆HC Reduce the number of bedridden elderly to
Slide 20: Social: Policy of Human Rights and Basic Policy of Procurement
Social Establishing “Unicharm Group Policy of Human rights” and “Basic Policy of Procurement” Unicharm Group Policy of Human Rights Basic Policy of Procurement Promoting efforts to respect human rights of Establishing “Unicharm Group Sustainable all stakeholders including employees procurement guide
Slide 21: Governance: Employee health and productivity
Governance Employees aim to be healthy physically and mentally and also productive activities Recognized as “2018 Excellent *1： The Ministry of Economy, Trade and Health Management Industry and the Japan Health Council Corporation ~ White 500~” honors corporations that are practicing *1 excellent he
Slide 22: Revitalization of Japan markets for all categories
Revitalization of Japan markets for all categories New products for FY 2018 spring (Japan) Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 22
Slide 23: Copyright Corporation. All rights
Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 23