2Q 2018 Performance Results. August 9, 2018 KOLON INDUSTRIES, INC.

Transcription

1 2Q 2018 Performance Results August 9, 2018 INDUSTRIES, INC.

2 Contents 1. Overview 1 Results Overview P.3 & Q18 Performance 2_1 Divisional Results 2_2 Non-operating Profit/Loss 2_3 Debt & Financial Ratio P.5 P.10 P Appendix 3_1 Statement of Income_Consolidated 3_2 Statement of Financial Position/Cash Flow 3_3 Group Structure P.12 P.13 P.14 All 2Q 2018 management performance and financial data in this report are consolidated or parent earnings results based on K-IFRS. The operating profit in this report was rewritten considering the changes made in 'indicating financial statements' of financial accounting standards This report has been drawn up for investors without receiving complete external auditing. It must be considered that some data may be revised in the process of external auditing. The data contains prospective information for the future, including the company s business prospect in the 3Q 2018 and further on. The prospective information has been drawn up considering the current market condition and the company s business strategy at present. Accordingly, it should be taken into consideration that this information may be modified depending on the environmental changes of markets and the company s strategic alteration.

3 3 1 Results Overview Industrial Material Percentage of Sales 36% 1,669 1,759 1,740 1, Functional fibers - Polyester tire cord, airbag cushion, technical yarn High performance fibers - Aramid Non-woven fabrics - Artificial leather, spunbond, membrane filter Subsidiary( GLOTECK, PLASTICS) - Fabric & yarn for car seat, Engineering plastic Chemical Percentage of Sales 21% 1,274 1, Hydrocarbon resin - For glue, paint, diaper, sanitary towel Phenolic resin - For industrial glue, cast, abrasive cloth, paint Epoxy resin - For electronic circuit, epoxy molding compound Film/electronic materials Percentage of Sales 12% Polyester Film - For packaging, optical film, solar protect film, industrial use film Electronic materials - Light diffuser film/plate, prism film, dry film resist, overcoat Fashion Percentage of Sales 22% 1,249 1,152 1,137 1, Outdoor, sports, golf - SPORT, HEAD, ELORD, Jack Nicklaus, HONMA Men wear, casual - CAMBRIDGE MEMBERS, Customellow, Series Accessory, women wear - COURONNE, Suecomma Bonnie, Lucky Chouette Fashion material, etc Percentage of Sales 9% Polyester chip Subsidiary( FASHION MATERIAL) - Polyester yarn and fabric for clothes - Nylon yarn and fabric for clothes Etc

4 4 1 Results Overview 2Q17 3Q17 4Q17 1Q18 2Q18 (Wbn) Sales 1,124 1,086 1,247 1,127 1,166 Operating Profit (OPM) 54 (4.8%) 46 (4.2%) 52 (4.2%) 38 (3.4%) 54 (4.6%) Pre-tax profit Net profit Revenue increased QoQ and YoY due to strong sales of industrial material division. OP increased QoQ and flat OP YoY from recovery of industrial material division along with increase in sales efficiency of fashion division. Pre-tax profit and net profit in 1Q18 was higher than 2Q18 due to stock disposal gains.

5 5 2_1 Divisional Results Industrial materials Consolidated earnings (Kolon Industries, Kolon Glotech, Kolon Nanjing Co.,LTD, Kolon Plastics, etc) (Wbn) ,669 1,759 1,740 1, % % % 4.8% % Q17 3Q17 4Q17 1Q18 2Q18 Sales OP OPM 2Q18 earnings were up QoQ on the back of earnings improvement of overseas subsidiaries including Kolon Glotech s China subsidiary as well as strong sales of Aramid.

6 6 2_1 Divisional Results Chemical Consolidated earnings (Kolon Industries, (SUZHOU) COMPANY LIMITED) (Wbn) ,274 1, % 11.5% 10.8% % 9.8% 44 Hydrocarbon resin 2Q17 3Q17 4Q17 1Q18 2Q18 Sales OP OPM Phenolic resin Sales and OP were down QoQ and YoY due to regular maintenance of Ulsan hydrocarbon resin factory. Epoxy resin

7 2_1 Divisional Results Film/Electronic Materials Consolidated earnings (Kolon Industries, KIN, KHC, etc) (Wbn) % -2.8% -2.7% -1.8% Q17 3Q17 4Q17-7.9% 1Q18 2Q18 Sales OP OPM DFR PET Film Loss in 2Q18 reduced QoQ and YoY as a result of increase in film sales and improvement of Kolon Huizhou (China). 프리즘필름 CPI Film 7

8 8 2_1 Divisional Results Fashion Consolidated earnings (Kolon Industries, etc) (Wbn) 1,249 1,152 1,137 1, % % 5.4% (Ⅰ) Outdoor % % 2Q17 3Q17 4Q17 1Q18 2Q18 Sales OP OPM (Ⅱ) Sports & Golf (Ⅲ) Man 2Q18 OP increased QoQ and YoY due to improved sales efficiency including reduced discounts and higher online sales on major products. (Ⅳ) Casual (Ⅴ) Accessory&Woman

9 9 2_1 Divisional Results Fashion material, etc Consolidated earnings (Kolon Industries, Kolon Fashion Material, etc) (Wbn) % -7.1% -15.0% -8.5% -4.0% (Ⅰ) Kolon Industries Q17 3Q17 4Q17 1Q18 2Q18 Sales OP OPM (Ⅱ) Kolon Fashion Material Loss in 2Q18 reduced QoQ as a result of earnings improvement of subsidiaries.

10 10 2_2 Non-operating Profit & Loss (Unit: Wbn) Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Q18 2Q18 Operating Profit Other income(losses) Finance income(losses) Gain (loss) on disposal of investments in associates and joint ventures Pre-tax Profit Equity Method Income(losses) on Investments (Unit: Wbn) SKC PI (Share : 27.0%) HANA Capital (Share : 42.6% 0.0%) 15 completed disposal of HANA Capital stake in February Q17 1Q18 2Q18 2Q17 1Q18 2Q18

11 11 2_3 Debt and financial ratio Changes in borrowings / Net Debt Ratio Consolidated (Wbn) Kolon Industries (Wbn) 2,043 1,963 2,082 2,000 2,186 2,085 1,488 1,486 1,503 1,501 1,541 1,538 89% 86% 90% Total Debt Net Debt Net Debt Ratio 86% 80% 81% 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 Financial Ratio 2Q17 1Q18 2Q18 Debt ratio (%) 144% 142% 142% Capital ratio (%) 41% 41% 41% Interest Coverage Ratio(Times) Total borrowings and bonds payable to total assets (%) 38% 37% 39% 2Q17 1Q18 2Q18

12 3_1 Income Statement (Consolidated) Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Q18 2Q18 (Wbn) Sales 5,338 4,857 1,151 1,134 1,037 1,240 4,562 1,150 1,124 1,086 1,247 4,607 1,127 1,166 Ind. Materials 1,669 1, , , Chemical 1,274 1, Film Fashion 1,249 1, , , Others Operating profit Ind. Materials Chemical Film Fashion Others Other income(losses) Finance income(losses) Equity method income (losses), losses on Sale of Equity Securities Pre-tax profit Net profit EBITDA

13 13 3_2 Statement of Financial Position/Cash Flows(Consolidated) IFRS (Consolidated) Q Q18 Total Assets 4,749 4,986 5,249 5,662 5,623 Beginning Current assets 1,938 1,945 2,068 2,095 1,952 Net Profit Non-current assets 2,811 3,041 3,182 3,567 3,671 Depreciation Liabilities 2,740 3,022 3,124 3,340 3,301 Amortization Current liabilities 1,744 1,828 1,953 2,126 2,161 Non-current liabilities 996 1,193 1,171 1,213 1,140 Acquisitions of Tangible Acquisitions of Intangible Equity 2,009 1,964 2,125 2,322 2,322 Dividends Paid Controlling Shareholders' Equity 1,884 1,832 1,981 2,183 2,189 Others Capital Ending Capital Surplus Consolidated Retained Earnings Accumulated Other Comprehensive Income , Hibrid Bond

14 3_4 3_3 Group structure 47.4% CHAIRMAN CORPORATION Manufacturing company Audi Dealer Pharmaceutical company IT service company Environmental company Construction & trading company 31.5% 99.3% 20.4% 48.1% 27.5% 51.0% 80.6% 75.2% INDUSTRIES AUTO LIFE SCIENCE PHARM TissueGENE BENIT ECO ONE GLOBAL 88.9% 90.0% NANJING(KNC) SUZHOU INDUSTRIES equity structure 78.8% 79.8% PT INA GLOTECH 50.1% Common Share 25,694, % CORPORATION National Pension Service KB Asset Management (As of 30 th June, 2018) (As of 30 th June, 2018) (As of 3 th Jan, 2018) 66.7% PLASTICS(KPL) 6.3% 12.1% Other 66.7% FASHION MATERIAL(KFM) 14