FY 2018 Third-Quarter Financial Results Briefing Material

Transcription

1 FY Third-Quarter Financial Results Briefing Material November 9, The Yokohama Rubber Co., Ltd.

2 Voluntary Adoption of IFRS Yokohama Rubber Group voluntarily adopted the International Financial Reporting Standards (IFRS) when the Group issued Yukashoken hokokusho ( Yuho, securities report) for The Group has restated its fiscal results for 2017 on an IFRS basis to facilitate meaningful year-on-year comparisons. 2

3 Scope of Consolidation, etc. Scope of consolidation Consolidated subsidiaries 127 companies (10 less than at the end of previous fiscal year) (Breakdown of change) Japan: -10 companies (Tire) Breakdown of transfers (Tire -10 companies) (Japan/Tire sales company) (Japan/Tire indirectly owned sales subsidiary) 3

4 Profit and Loss (Third-Quarter) Exchange Rates US$ 110 yen 112 yen (previous year) -2 yen EUR 131 yen 125 yen (previous year) +6 yen RUB 1.8 yen 1.9 yen (previous year) -0.1 yen TSR20 * 140 cents 172 cents (previous year) -32 cents *SICOM TSR20 1M WTI 67 dollars 49 dollars (previous year) +17 dollars IFRS JGAAP (for reference) 2017 (%) 2017 Sales revenue % Net sales Business profit* 1 (Business profit margin) 35.6 (7.7%) 31.4 (6.9%) +4.2 (+0.8%) +13.4% Operating income (Operating income margin) 26.4 (5.7%) Operating profit (Operating profit margin) 27.0 (5.8%) 29.4 (6.4%) -2.4 (-0.6%) -8.3% Ordinary income (Ordinary income margin) 27.5 (5.9%) Profit * % Profit attributable to owners of parent 16.7 *1 Business profit= Sales revenue- (Cost of sales + SG&A expenses) *2 Profit attributable to owners of parent 4

5 Factor Analysis of Business Profit Third-Quarter Factors that boosted business profit (Breakdown) Natural rubber +5.1 Synthetic rubber +1.6 Compound agent -4.5 Other Raw material prices Sales volume +1.9 (Breakdown) Sales volume -4.1 Variable cost -0 Production costs Prices/ MIX +5.4 Fixed cost -1.5 ATG MB Factors that reduced business profit Other Business profit for previous fiscal year 31.4 Exchange rate difference US$ 110 yen 112 yen(previous year) EUR 131 yen 125 yen(previous year) yen +6 yen RUB 1.8 yen 1.9 yen(previous year) -0.1 yen Business profit for 35.6 Tires +3.1 ATG +1.1 MB/Others Business profit: +4.2 billion yen 5

6 Business Segment (ThirdQuarter) IFRS JGAAP (for reference) 2017 (%) 2017 Tires % Tires Sales revenue MB ATG Other % % % Net sales MB 80.5 ATG 46.5 Other 6.6 Total % Total Tires % Tires 19.0 Business profit MB ATG Other Intersegment eliminations % % % +0.1 Operating income MB 4.4 ATG 2.0 Other 1.0 Intersegment eliminations -0.1 Total % Total

7 Profit and Loss (Quarterly) Exchange Rates US$ 109 yen EUR 132 yen RUB 1.8 yen -4 yen +10 yen -0.1 yen TSR20 * 143 cents -38 cents WTI 65 dollars +16 dollars *SICOM TSR20 1M US$ 111 yen +0 yen EUR 130 yen -1 yen RUB 1.7 yen -0.2 yen 133 cents -21 cents 70 dollars +21 dollars US$ 110 yen -2 yen EUR 131 yen +6 yen RUB 1.8 yen -0.1 yen 140 cents -32 cents 67 dollars +17 dollars Jan. Jun. Jul. Sep. Sales revenue Business profit *1 (Business profit margin) 23.8 (7.7%) +2.1 (+0.6%) 11.8 (7.8%) +2.1 (+1.4%) 35.6 (7.7%) +4.2 (+0.8%) Operating profit (Operating profit margin) 26.4 (8.5%) +6.4 (+1.9%) 0.6 (0.4%) -8.9 (-5.8%) 27.0 (5.8%) -2.4 (-0.6%) Profit * *1 Business profit= Sales revenue- (Cost of sales + SG&A expenses) *2 Profit attributable to owners of parent 7

8 Factor Analysis of Business Profit First Half (Jan.-Jun.) (Breakdown) Natural rubber +3.2 Synthetic rubber +1.7 Compound agent -3.0 Other -0.5 Business profit for previous fiscal year 21.7 Exchange rate difference +1.0 Raw material prices +1.4 US$ 109 yen 112 yen(previous year) Sales volume -2.9 (Breakdown) Sales volume -2.9 Variable cost -0-4 yen EUR 132 yen 122 yen(previous year) +10 yen RUB 1.8 yen 1.9 yen(previous year) -0.1 yen Production costs -0.3 Prices/ MIX Fixed cost ATG +0.6 Business profit: +2.1 billion yen MB +0.2 Other -0.2 Business profit for 23.8 Third-Quarter (Jul.-Sep.) US$ 111 yen 111 yen(previous year) +0 yen EUR 130 yen 130 yen(previous year) -1 yen RUB 1.7 yen 1.9 yen(previous year) -0.2 yen Exchange rate Raw material difference prices Sales volume Business +0.5 profit for -0.5 previous -1.2 fiscal year 9.6 (Breakdown) Natural rubber +1.9 Synthetic rubber -0.1 Compound agent -1.5 Other +0.2 (Breakdown) Sales volume -1.2 Variable cost -0 Production costs +1.2 Prices/ MIX +1.9 Fixed cost -0.3 ATG +0.4 Business profit: +2.1 billion yen MB -0.1 Other +0.1 Business profit for

9 Financial Position IFRS Sep. 30, Dec. 31, 2017 Current assets Non-current assets Total assets Liabilities Equity Total liabilities and equity Interest-bearing debt Ratio of equity attributable to owners of parent 42.0% 41.2% +0.8% D/E ratio

10 s in Interest-bearing Debt, Total equity (Net Assets), D/E Ratio, and Net D/E Ratio Total equity / Net assets Interest-bearing debt D/E ratio Net D/E ratio IFRS JGAAP * Total equity do not include non-controlling interests. *Net assets do not include non-controlling interests. 10

11 State of Cash Flows 2017 CF from operating activities CF from investing activities Free CF CF from financing activities Closing balance of cash and cash equivalents

12 Earnings Forecast for FY 12

13 FY Profit and Loss Projections (d from the previous forecast) Forecasts from Oct. 1 to Dec. 31, Exchange Rates TSR20 * WTI US$ 113 yen EUR 130 yen RUB 1.7 yen 133 cents 70 dollars *SICOM TSR20 1M Full year (revised forecast) 2017 Full year (actual) for 2017 result Full year (previous forecast) for previous forecast Sales revenue Business profit* 1 (Business profit margin) 61.5 (9.5%) 58.3 (9.0%) +3.2 (+0.5%) 63.0 (9.4%) -1.5 (+0.1%) Operating profit (Operating profit margin) 55.0 (8.5%) 54.2 (8.4%) +0.8 (+0.1%) 60.0 (9.0%) -5.0 (-0.5%) Profit * *1 Business profit= Sales revenue- (Cost of sales + SG&A expenses) *2 Profit attributable to owners of parent 13

14 Forecast for Business Segments (Full Year) Full year (revised forecast) 2017 result for 2017 result Full year (previous forecast) for previous forecast Tires Sales revenue MB ATG Other Total Tires Business profit MB ATG Other Intersegment eliminations Total

15 Factor Analysis of Business Profit (Full Year) Full Year US$ 110 yen 112 yen(previous year) EUR 131 yen 127 yen(previous year) Exchange rate difference Raw material prices -2 yen +4 yen RUB 1.8 yen 1.9 yen(previous year) -0.2 yen Sales volume (Breakdown) Sales volume -3.0 Variable cost -0.3 Production costs Prices/ MIX Fixed cost ATG MB Other Factors that boosted business profit Factors that reduced business profit Business profit for previous fiscal year 58.3 (Breakdown) Natural rubber +5.9 Synthetic rubber +0.5 Compound agent -6.0 Other -0.2 Business profit for 61.5 Tires +2.6 MB/Others Business profit: +3.2 billion yen ATG

16 Cautionary Notes Regarding Forecasts Forecasts and outlooks included in this material are based on the judgment of the Company's management using currently available information. Actual results and earnings may differ from the forecasts and outlooks included in the material due to various risks and uncertainties. 16

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