4Q 2018 Performance Results KOLON INDUSTRIES, INC.

Transcription

1 4Q 2018 Performance Results 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 4Q 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 1Q 2019 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 1 Percentage of Sales Fashion Percentage of Sales Results Overview Industrial Material Percentage of Sales Chemical 22% 20% Film/electronic materials Percentage of Sales 12% 38% 1,669 1,759 1,740 1,719 1,786 1,274 1, ,249 1,152 1,137 1,097 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 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 Polyester Film - For packaging, optical film, solar protect film, industrial use film Electronic materials - Light diffuser film/plate, prism film, dry film resist, 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 10% Polyester chip Subsidiary( FASHION MATERIAL) - Polyester yarn and fabric for clothes - Nylon yarn and fabric for clothes Etc 3

4 4 1 Results Overview 4Q17 1Q18 2Q18 3Q18 4Q18 (Wbn) Sales 1,247 1,127 1,166 1,133 1,327 Operating Profit (OPM) 52 (4.2%) 38 (3.4%) 54 (4.6%) 22 (1.9%) 31 (2.3%) Pre-tax profit Net profit Sales were up QoQ and YoY from seasonality factor of fashion division along with sales increase in industrial material and film division. OP increased QoQ from seasonality factor of fashion division but decreased YoY from increased one-off expenses. Pre-tax profit loss and net profit loss temporarily increased due to asset impairment loss.

5 5 2_1 Divisional Results Industrial materials Consolidated earnings (Kolon Industries, Kolon Glotech, Kolon Nanjing Co.,LTD, Kolon Plastics, Kolon Vietnam, etc) (Wbn) ,786 1,759 1,740 1,719 1, % % % % % 21 4Q17 1Q18 2Q18 3Q18 4Q18 Sales OP OPM 4Q18 sales were up QoQ and YoY due to increased sales of major products along with gradual increase in ASP. However, OP declined due to increased one-off expenses and raw material costs.

6 6 2_1 Divisional Results Chemical Consolidated earnings (Kolon Industries, (SUZHOU) COMPANY LIMITED) (Wbn) ,274 1, % % 9.8% 9.1% % Hydrocarbon resin 4Q17 1Q18 2Q18 3Q18 4Q18 Phenolic resin Sales OP OPM Profit in 4Q18 declined QoQ and YoY due to impact of regular maintenance along with reduced hydrocarbon resin spread and epoxy resin profitability. Epoxy resin

7 2_1 Divisional Results Film/Electronic Materials Consolidated earnings (Kolon Industries, KIN, KHC, etc) (Wbn) % -1.8% -3.6% -2.2% -7.9% Q17 1Q18 2Q18 3Q18 4Q18 DFR PET Film Sales OP OPM Loss in 4Q18 reduced QoQ and YoY as a result of increase in film sales and earnings improvement of subsidiaries. 프리즘필름 CPI Film 7

8 8 2_1 Divisional Results Fashion Consolidated earnings (Kolon Industries, etc) (Wbn) 1,249 1,152 1,137 1,097 1, % % % % (Ⅰ) Outdoor % 25 (Ⅱ) Sports & Golf 4Q17 1Q18 2Q18 3Q18 4Q18 (Ⅲ) Man Sales OP OPM (Ⅳ) Casual 4Q18 earnings were up QoQ due to seasonality factor, but slightly decreased YoY due to increased marketing expenses as well as the impact of warm weather. (Ⅴ) Accessory&Woman

9 9 2_1 Divisional Results Fashion material, etc Consolidated earnings (Kolon Industries, Kolon Fashion Material, etc) (Wbn) % -8.5% -4.0% -9.5% (Ⅰ) Kolon Industries % Q17 1Q18 2Q18 3Q18 4Q18 (Ⅱ) Kolon Fashion Material Sales OP OPM Loss in 4Q18 increased due to the low seasonality factor of subsidiaries and increased one-off expenses.

10 10 2_2 Non-operating Profit & Loss (Unit: Wbn) Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Q18 2Q18 3Q18 4Q Operating Profit Other income(losses) Finance income(losses) Gain (loss) on disposal of investments in associates and joint ventures Pre-tax Profit Other expenses increased in 4Q18 from asset impairment losses. Equity Method Income(losses) on Investments (Unit: Wbn) SKC PI (Share : 27.0%) HANA Capital (Share : 42.6% 0.0%) 8 - completed disposal of HANA Capital stake in February Q17 3Q18 4Q18 4Q17 3Q18 4Q18

11 11 2_3 Debt and Financial Ratio Changes in borrowings / Net Debt Ratio Consolidated (Wbn) Kolon Industries: Non-consolidated(Wbn) 2,103 2,146 2,026 2,070 2,242 2,155 Total Debt 1,555 1,551 1,539 1,537 1,601 1,606 87% 87% 98% 4Q17 3Q18 4Q18 Net Debt Net Debt Ratio 88% 78% 86% 4Q17 3Q18 4Q18 Financial Ratio Interest Coverage Ratio (times) 4Q17 3Q18 4Q18 Debt ratio (%) Capital ratio (%) 143% 139% 152% 41% 42% 40% Total borrowings and bonds payable to total assets (%) 37% 38% 40% 4Q17 3Q18 4Q18

12 3_1 Income Statement (Consolidated) Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Q18 2Q18 3Q18 4Q (Wbn) Sales 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 1,133 1,327 4,753 Ind. Materials 1, , , ,786 Chemical 1, Film Fashion 1, , , ,046 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 3_2 Statement of Financial Position/Cash Flows(Consolidated) IFRS (Consolidated) Total Assets 4,749 4,986 5,249 5,662 5,574 Beginning Current assets 1,938 1,945 2,068 2,095 1,957 Net Profit Non-current assets 2,811 3,041 3,182 3,567 3,618 Depreciation Liabilities 2,740 3,022 3,124 3,340 3,366 Amortization Current liabilities 1,744 1,828 1,953 2,126 2,326 Non-current liabilities 996 1,193 1,171 1,213 1,040 Acquisitions of Tangible Acquisitions of Intangible Equity 2,009 1,964 2,125 2,322 2,208 Dividends Paid Controlling Shareholders' Equity 1,884 1,832 1,981 2,183 2,096 Others Capital Ending Capital Surplus Consolidated Retained Earnings Accumulated Other Comprehensive Income Hybrid Bond Non-Controlling Shareholders' Equity

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 As of December 31, % 79.8% PT INA GLOTECH 49.9% Common Share 26,978, % CORPORATION National Pension Service KB Asset Management 66.7% PLASTICS(KPL) 6.0% 12.1% Other 66.7% FASHION MATERIAL(KFM) 14