First Half of Fiscal Year Ending December 31, 2016 …...2016/08/17 · For the FY ending Dec. 31,...

August 5, 2016 Takahisa Takahara President and CEO Unicharm Corporation

Projections stated herein include those based on the Company’s assumptions, forecasts and plans

as of August 5, 2016. Therefore, actual results may differ significantly from projections due to

risks and uncertainties associated with market competition, foreign exchange rates, etc.

First Half of Fiscal Year Ending December 31, 2016 Financial Performance Unicharm Investor Meeting Presentation Materials

First Half of Fiscal Year Ending December 31, 2016 Financial Performance Summary

Copyright (c) Unicharm Corporation. All rights reserved.

R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette

Page番号を隠さないよう注意

枠内に収める枠内に収める

1H of Fiscal Year Ending December 31, 2016 Financial Performance Summary

3

Operating profit records surpassed for nine consecutive fiscal periods

Net sales -8.33 billion JPY (-2.3％) – Approx. 5% increase in income excluding exchange effects

Operating profit +1.07 billion JPY (+3.1％) – Approx. 7% increase in profits excluding exchange effects

Japan: Favorable performance for both Personal Care and Pet Care businesses led to increase in income and profit

China: About 30% growth for imports from Japan (mainly cross-border EC, authorized imports)

Inbound from baby care market decreased, Chinese consumer demand for Japan-made premium products increased, and the once overstocked distribution inventory is now

decreasing

Ordinary profit -6.92 billion JPY (-21.0％) – Approx. 10% increase in profit excluding exchange effects

Quarterly net income +1.67 billion JPY (+10.5％)

Greater exchange loss mainly due to revaluation of inter company loans -6.25 billion JPY

Profit from sale of policy-held stocks that do not contribute to improvement of corporate value +3.66 billion JPY

Tax cost decrease due to lowering of effective tax rate (36.2%→32.3%) ＋1.16 billion JPY

Cash flows form operating activities +10 billion JPY (41 billion JPY→51 billion JPY +25%)

Profit increase of parent company return from purchase of shares from Middle-East subsidiaries +1.91 billion JPY


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



Year-on-year: 2.3% net sales decrease, 3.1% operating income increase Public achievement rates: 96.0% net sales, 96.7% operating profit

4

(Millions of yen) Consolidated account highlights

1H of FY Ending

Dec 31, 2016 1H of FY Ended

Dec 31, 2015 Difference*

Difference (%)*

(Reference) 1H of FY Ending

Dec 31, 2016 (Published value)

Achievement rate

Net sales 350,479 358,809 -8,330 -2.3％ 365,000 96.0%

Operating income Operating income margin

35,773 10.2%

34,700 9.7%

1,073 3.1%

(+0.5%P) 37,000 10.1%

96.7%

Ordinary income Ordinary income margin

26,032 7.4%

32,952 9.0%

-6,919 -21.0％

(-1.6%P) 33,000

9.0% 78.9%

Net income Net income margin

17,555 5.0%

15,891 4.4%

1,665 10.5%

(+0.6%P) 17,500

4.8% 100.3%

EPS (Yen) 29.47 26.44 3.03 11.5% ーー

*1: Excluding effects from exchange fluctuations (Replaced with rate from 1H of FY Ended Dec 31, 2015) Approx. 5% growth in net sales, approx. 5% growth in operating income *2: Quarterly net income from return to parent company shareholder

*2

*1

*1


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



The appreciation of the yen had a negative impact, but overseas, local currency base grew by approx. 3% In Japan, driving forces are Health Care and Feminine Care businesses.

5

Consolidated net sales fluctuation

Japan China India Asia

Others

3,588 3,504

1H of FY Ended

Dec 31, 2015

+109

-2 -53 -19

◆Japan: Personal Care, Pet Care continued with stable growth. Overseas, demand for Japan-made products increased.

◆China: Baby Care seeing recovering trend, and Feminine Care maintaining favorable sell-out conditions (local currency base).

◆India: While market growth slowed due to heat wave, area expansion was promoted and growth continued (local currency base).

◆Asia, others: Vietnam, Thailand seeing upward shifts, Indonesia seeing recovering trends due to improvement of consumer mindsets.

(100 millions of yen)

1H of FY Ending

Dec 31, 2016

Others

-119

Exchange effects: -25.5 billion JPY


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



Profit increase due to effects of material cost fluctuations and product mixing improvement

6

Consolidated operating income fluctuation

Sales promotion

costs

Advertising costs

Other Materials, etc. Productivity improvement,

etc.

347 357

-28

+60 -37


Freight Effect of lower income

+1 +1 -2

+15

1H of FY Ended Dec 31, 2015

1H of FY Ending

Dec 31, 2016

Gross profit rate

2.1%P improvement Selling and administrative

expense rate

1.6%P increase


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette


枠内に収める枠内に収める Geographical Segment Information

In Japan, steady growth from sales expansion of high value-added products In Asia, active investment to expand the market

7

1H of FY Ending

Dec31, 2016

1H of FY Ended

Dec31, 2015 Net sales Operating income

Net sales Operating income

Operating income

margin Net sales

Operating income

Operating income

margin Difference

Difference

(%) Difference

Difference

(%)

Japan 143,696 22,435

15.6% 132,764

18,304

13.8% 10,932 8.2% 4,131

22.6%

(+1.8%P

)

Asia 154,813 10,724

6.9% 172,216

15,447

9.0% -17,403 -10.1% -4,723

-30.6%

(-2.1%P)

Others* 51,969 2,416

4.6% 53,828

1,141

2.1% -1,859 -3.5% 1,275

111.7%

(+2.5%P

)

Elimination/ Companywide ‐ 197 ‐ -192 ‐ ‐ 390 ‐

Consolidated 350,479 35,773

10.2% 358,809

34,700

9.7% -8,330 -2.3% 1,073

3.1%

(+0.5%P

)

*Others: Main regions are U.S.A., Saudi Arabia, Brazil, the Netherlands

(Millions of yen)


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



Effects of exchange fluctuations: Net sales -25.5 billion JPY, operating profit -2.5 billion JPY (Breakdown of operating profit: Conversion -1.5 billion JPY, rise in purchase price -1 billion JPY)

Currency Exchange rate for

1H of FY 2016

Exchange rate for

1H of FY 2015 Change in rate

Taiwan (TWD) 3.41 3.86 -11.7％

Thailand (THB） 3.15 3.65 -13.7％

South Korea (KRW) 0.0946 0.1096 -13.7％

Indonesia (IDR) 0.0084 0.0093 -9.7％

Malaysia (MYR) 27.25 33.07 -17.6％

Netherlands (EUR) 124.62 134.17 -7.1％

China (CNY) 17.07 19.32 -11.6％

Philippines (PHP) 2.40 2.72 -11.8％

Saudi Arabia (SAR) 29.86 32.10 -7.0％

India (INR) 1.68 1.93 -13.0％

USA (USD) 111.81 120.23 -7.0％

Russia (RUB) 1.60 2.10 -23.8%

Australia (AUD) 81.90 94.03 -12.9%

Vietnam (VND) 0.0050 0.0056 -10.7% 8

Rate changes by currency

Fiscal Year Ending December 31, 2016 Earnings Forecast


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



For the FY ending Dec. 31, 2016, looking back at effects of yen appreciation and reviewing the conversion rate Net sales 720 billion JPY (2.5% decrease), operating profit 83 billion JPY (3.8% increase)

FY Ending

Dec. 31, 2016

FY Ended

Dec. 31, 2015 Difference

Difference

(%)

(Reference)

Previous

Earnings

Forecast

(Reference) Difference

(%)

Net sales 720,000 738,707 -18,707 -2.5% 777,000 -7.3％

Operating income

Operating income

margin

83,000

11.5%

79,934

10.8% 3,066

3.8%

(+0.7%P)

87,000

11.2% -4.6％

Ordinary income

Ordinary income

margin

70,000

9.7%

71,380

9.7% -1,380

-1.9%

(+0.0%P)

80,000

10.3% -12.5％

Net income

Net income margin

42,000

5.8%

40,511

5.5% 1,489

3.7%

(+0.3%P)

47,000

6.0% -10.6％

EPS(Yen) 70.48 67.55 2.93 4.3% 78.90 -10.7％

10

Consolidated earnings forecast

*1: Excluding effects of exchange fluctuation (Replaced with conversion rate from FY ended Dec. 2015) Net sales approx. 800 billion JPY (approx. 8% increase), operating income approx. 90 billion JPY (approx. 13% increase) *2: Quarterly net profit returning to parent company

*2

*1

*1

(Millions of yen)


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



FY ending Dec. 31, 2016 Earnings forecast revision details

11

Conversion rate revision for all currencies

Primary Currency

FY Ending

Dec. 31, 2016

Revised Rate

(JPY)

FY Ending

Dec. 31, 2016

Previous Rate

(JPY)

Difference

(%)

(Ref.) FY Ending

Dec. 31, 2016

(JPY)

(Ref.)

Difference(%)

USA (USD) 105.90 118.50 -10.6％ 121.05 -12.5％

China (RMB) 16.19 17.90 -9.6％ 19.22 -15.8％

Indonesia (IDR) 0.0077 0.0085 -9.4％ 0.0091 -15.4％

Thailand (THB） 3.01 3.26 -7.7％ 3.54 -15.0％

Vietnam (VND) 0.0047 0.0053 -11.3％ 0.0055 -14.5％

[Other changes from original forecast]

Change in account category for Chinese subsidiaries

Originally sales discount (non-operating expenses), changed to selling and administrative expenses

Effects of raw material costs (including exchange) due to changes in raw oil market conditions

Effects of revaluation of foreign currency assets and liabilities due to exchange fluctuations

Increase in exchange loss due to revaluation of inter company loans

Approx. -2~-3 billion JPY

Approx. +2 to +3 billion JPY

(Effect on operating profit)

(Effect on ordinary income)

Approx. -6 billion JPY


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



For 3Q, improvement of profitability will progress with a focus on Asia For 4Q, maintain high profitability

12

Consolidated earnings forecast graph (quarterly base) Previous term

Current term

Net sales

-2.5%

1H performance

-2.3%

1Q actual

-2.1% +0.2%

3Q plan

-5.1%

4Q plan

2H plan

-2.7%

Annual -2.5%

Operating income

-11.8%

1H performance

+3.1%

+17.5% +29.2%

3Q plan

-8.1%

4Q plan

2H plan

+4.4%

Annual +3.8%

11.7%

9.7%

9.6%

8.7%

11.5%

8.9%

14.3%

13.9%

Operating income rate fluctuations

(against previous term) (against previous term)

1,775 1,812 1,702 2,096 170 176 151 300

1,730 1,774 1,705 1,989 150 207 196 276


2Q actual 1Q

performance 2Q

performance

FY Ending Dec. 31, 2016 Shareholder Return Policy


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



47.5%49.5%

44.7%

38.3%

55.6%

40.3%

51.4%47.8%

53.9%56.0%

0

50

100

150

200

250

300

'08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12 '15/12 '16/12E0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%Dividends Stock buy-back Total amount of profit return Total return ratio

14

With a 50% total return ratio policy, forecast of increased dividends for 21 consecutive periods and 56% total return ratio

*

Our aim is to provide profit return with a total return ratio of 50% as our goaｌ (Estimated payout ratio of 20%), in combination with shareholder allotment and stock buy-back acquisition, by implementing stable and continuous share allotment based on growth of mid-term consolidated earnings, while prioritizing business investment that ensures continuous growth, and swiftly acting as necessary in regards to shareholder allotment and stock buyback.

Shareholder Return Policy

*Irregular results due to change in settlement period



R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette




5060

50 50

6576

90

110120

80

130140

0

20

40

60

80

100

120

140

160

'06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12 '15/12 '16/12E

15

Swiftly acquire stocks through buy-back based on cash conditions Acquisition forecast for FY 2016 is 14 billion JPY (max.), 8 million stocks (max.)

*

Stock buy-back acquisition graph (100 millions of yen)


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette




3.74.9 5.1

6.0

7.7

9.310.7

11.312.7 12.73

14.816

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

'06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12 '15/12 '16/12E

16

Steady and continual dividend payments

*

(JPY)

Dividends per share

Plan for increased dividends for 21 consecutive periods

Reference materials


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette


枠内に収める枠内に収める Segment information by business

[Ref.] Pet Care business: Increase in income/profit in Japan via brand enhancement, etc. and income/profit improvement overseas via shift to high value-added products overseas

18

1H of FY Ending

Dec31, 2016

1H of FY Ended

Dec31, 2015 Net sales Operating income

Net sales Operating income

Operating income

margin Net sales

Operating income

Operating income

margin Difference

Difference

(%) Difference

Difference

(%)

Personal

Care 306,851

34,076

11.1% 315,956

34,129

10.8％ -9,105 -2.9% -52

-0.2%

(+0.3%P)

Pet Care 40,644 1,497

3.7% 40,277

440

1.1% 367 0.9% 1,057

239.8%

(+2.6%P)

Others* 2,983 199

6.7% 2,576

130

5.1% 408 15.8% 69

52.8%

(+1.6%P)

Elimination/

Companywide ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Consolidated 350,479 35,773

10.2% 358,809

34,700

9.7% -8,330 -2.3% 1,073

3.1%

(+0.5%P)

*Others: Products related to industrial materials, etc.

(Millions of yen)


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette




[Ref.] Overseas net sales ratio: 59.3% (62.0% excluding exchange effects)

19

31.2%34.0%

37.2%

43.1%

50.3% 48.0%

44.2%42.0%44.1%

51.7%

58.5%

65.6%63.3%

59.3%

0%

10%

20%

30%

40%

50%

60%

70%

0

200

400

600

800

1000

'10/2Q '11/2Q '12/2Q '13/2Q '14/2Q '15/2Q '16/2QDomestic sales (left scale) Asia overseas sales (left scale) Other overseas sales (left scale)

Asia sales ratio (right scale) Overseas sales ratio (right scale)

Japan / overseas sales

*

(Billions of yen)


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



15.6%

11.9%

13.9%

12.0%

13.8%

12.0%

12.8%13.0%

6.9%

12.4%

15.3%

9.0%

11.0%

13.9%14.0%

15.2%

4.6%

2.1%

5.2%4.0%

3.0%

6.2%

1.6%2.2%

10.2%9.7%

10.3%11.2%

12.8%12.2%

12.4%11.8%

0.0%

5.0%

10.0%

15.0%

20.0%

'09 /2Q '10 /2Q '11 /2Q '12/2Q '13/2Q '14/2Q '15/2Q '16/2Q

Japan Asia Other Consolidated

[Ref.]In Japan, improvement of product mixing with high value-added products In Asia, active marketing investment ahead of the market

20

Operating profit ratio by location


※


R=255

G=0

B=0

R=255

G=102

B=0

R=255

G=204

B=0

R=0

G=0

B=102

R=51

G=51

B=204

R=102

G=102

B=255

R=103

G=204

B=255

下=2

右=3

下=3

右=4

下=3

左=4

上=1

右=1

上=3

右=2

上=4

右=3

上=5

右=5

RGB palette



21

Thank you

Unicharm constantly provides the world’s No.1 and unprecedented

products and services to everybody

inspiration and satisfaction.

around the globe, and delivers comfort,

Date post:	31-Aug-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

First Half of Fiscal Year Ending December 31, 2016 …...2016/08/17 · For the FY ending Dec. 31,...

Documents