Bando Chemical Industries, Ltd.

Transcription

1 Consolidated Business Results for the Fiscal Year Ending March 31, 216 Bando Chemical Industries, Ltd. May 12, 216

2 Contents Ⅰ. Company overview Ⅱ. Financial summary for the fiscal year ending March 31, 216 Ⅲ. Business forecast for the fiscal year ending March 31, 217 1

3 Ⅰ. Company overview 2

4 Company Profile Company name Bando Chemical Industries, Ltd. (TSE code: 5195) Head Office Minatojima Minamimachi, Chuo-ku, Kobe, Japan President Mitsutaka Yoshii Founded April 14, 196 Capital 1,951 million (as of March 31, 216) Automotive Parts Division Industrial Products Division Industrial equipment drive belts Agricultural machinery drive betls Conveyor belts Advanced Elastomer Products Division Accessory drive belts Tensioners Precision parts (L: Cleaning blades R: High-performance rollers) Film products 3

5 Ⅱ. Financial summary for the fiscal year ending March 31, 216 4

6 Highlights for the fiscal year ending March 31, /3 216/3 (Yen millions) Results Results Year on year change Initial forecast Difference to forecast Net sales 95,395 93,272-2,123 95, -1,727 Operating income 4,797 5,96 +1,163 5,8 +16 Ordinary income 5,73 6, ,8-436 Operating income ratio 5.% 6.4% +1.4% 6.1% +.3% While net sales decreased compared with the previous year term, operating income increased due to cost reduction activities. Net sales were less than the initial forecast, however, operating income exceeded the forecast. 5

7 Highlights for the fiscal year ending March 31, 216 Net sales of automotive parts decreased compared with the previous year due to declining production by major customers in China, Asia and Japan. Sales of variable speed belts for scooters increased in Vietnam and India, and we began full-scale production of variable speed belts in India. Sales of industrial transmission belts increased due to firm equipment demand in America and Asia, and a resumption of agricultural subsidies in China. Overall sales of advanced elastomer products were generally flat compared with the previous year; sales of high value-added film products increased, but sales of precision parts decreased with declining production by leading office automation equipment manufacturers. Operating income increased, with lower raw material costs due to declining naphtha prices, thorough cost reductions, and progress in profitability improvements with increased production at overseas manufacturing affiliates. 6

8 Quarterly transition of net sales and operating income Net sales (Yen millions) :Net sales :Operating income Operating income (Yen millions) 25, 23,175 23,744 24,55 23,969 24,165 23,987 22,86 22,259 2, 2, 1,328 1,394 1,293 1,626 1,424 1,617 1,6 15, 99 1,83 1,2 1, 8 5, 4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 214 FY 215 7

9 FY215 Business segment performance (Yen millions) Net sales Segment profit Automotive Parts 42,844 3,323 Industrial Products 33,96 1,924 Advanced Elastomer Products 15, , Eliminations Total 93,272 5,96 8

10 Transition in net sales by business segment ( 1 mil) Industrial Products Advanced Elastomer Products Automotive Parts ( 1 mil) ( 1 mil) +1.9% -6.4% -.6% +2.2% +4.5% -.5% /3 15/3 16/3 14/3 15/3 16/3 Note: Net sales above are after inter-segment eliminations. 14/3 15/3 16/3 9

11 Global net sales by region /3 15/3 16/3 China /3 15/3 16/3 Japan /3 15/3 16/3 Europe, America, other 14/3 15/3 16/3 Asia (Unit: 1 mil) 1

12 Automotive Parts overview Geographic sales ( 1 mil) China (+6.2%) China (-1.9%) Expanded sales of accessory drive belt products, with continued favorable automotive production in Europe and America. Expanded aftermarket and OEM sales in Turkey. Accessory drive transmission belt product sales increased, boosted by small car tax reduction measures introduced last October, but system product sales decreased due to declining production by major customers. 2 1 Asia Asia (-9.3%) Variable speed belt sales for scooters remained strong in India and Vietnam, but sales declined in Korea due to a reduction of vehicles equipped with our power transmission system products. 15/3 16/3 Japan Japan (-5.5%) Power transmission belt and system product sales decreased following an increase in small vehicle taxes and reduced domestic production volume. Product sales ( 1 mil) /3 16/3 Power transmission system products Accesory drive belts Automotive Parts (-6.4%) Transmission belt product ratio moved from 53% to 56% Automotive belt sales expanded in Europe and America, and variable speed belts for scooters expanded in Asia. System product sales ratio moved from 42% to 39% Decreased sales due to model changes by major customers and production cuts in Chinese markets. Note: Sales are after eliminations. Year-on-year change shown in parentheses. 11

13 Industrial Products overview Geographic sales ( 1 mil) China (+7.7%) China (+25.4%) Industrial belt sales expanded in the economicallysteady U.S. Agricultural belt sales increased with the resumption of agricultural machinery purchase subsidies, and successful sales promotion activities. 1 Asia Asia (+13.4%) Sales increased, as we focused on market development for industrial and agricultural power transmission belts in Thailand, Vietnam and India. 15/3 16/3 Japan Japan (-1.5%) Light duty belt sales expanded, but sales declined for conveyor belts used in resource development. Sales of transmission belts used in industrial machinery were flat. Product sales ( 1 mil) /3 16/3 Industrial belts Lighet duty conveyor belts Conveyor belts Industrial Products (+2.2%) Note: Sales are after eliminations. Year-on-year change shown in parentheses. Overall conveyor belt sales declined, with the decline of belt sales in resource development industries. Sales of light duty belts expanded in the domestic food industry, but declined in food plants in China. Sales of industrial machinery belts expanded in Asia and America, as well as in China. 12

14 Industrial Products overview (industrial power transmission belts, conveyor belts) Geographic sales of industrial transmission belts ( 1 mil.) ( 1 mil) 18 Geographic sales of conveyor belts China 12 Overseas 5 Asia Japan 6 Japan 15/3 16/3 15/3 16/3 Product sales (industrial transmission belts) Product sales (conveyor belts) ( 1 mil) ( 1 mil) /3 16/3 Industrial belts /3 16/3 Light duty conveyor belts Conveyor belts Note: Sales are after eliminations. Year-on-year change shown in parentheses. 13

15 Advanced Elastomer Products overview ( 1 mil) /3 16/3 Precision belts Blades, high performance rollers Precision parts product sales Precision parts (-2.5%) Sales remained flat for precision belts used in OA equipment, and high performance rollers. Sales decreased for blades and precision abrasives. ( 1 mil) /3 16/3 Medical-related Industrial materials Decorative display Building materials Film product sales Film (+4.2%) Sales of decorative display film and film used in construction materials increased, but sales of industrial film decreased. Note: Sales are after eliminations. Year-on-year change shown in parentheses. 14

16 Transition of cash flow Yen millions 1, 8, 6,595 6, 4, 7,4 Operating activities Investment activities Free cash flow 9,38 8,61 6,459 4,854 4,13 2, 1,827 1,223 1,421 12/3 13/3 14/3 15/3 16/3-2, -4, -6, -4,767-5,781-5,37-3,931-4,184-8, 15

17 Consolidated Balance Sheets 1 94,6 million yen 9,7 million yen 9 8 Cash and deposits 161 Debt 144 Cash and deposits 169 Debt 125 <Assets> Total assets decreased by 3.93 billion, reflecting reduced net sales and yen strengthening at term-end. 7 6 Accounts receivable 193 liabilities 234 Accounts receivable 183 liabilities 229 <Liabilities> In addition to reducing interest bearing debt, net cash increased from 1.71billion to 4.42 billion Inventory 118 assets 17 Fixed assets 455 Net assets 567 Inventory 15 assets 16 Fixed assets 432 Net assets 552 <Net assets> Net assets decreased by 1.57 billion, as share prices decreased due to yen strengthening, and foreign currency translation adjustments and net unrealized gains on securities declined. Term-end exchange rates USD:15/ yen 16/ yen 15/3 16/3 16

18 Financial indicators % ROA/ROE % Capital ratio Record high % /3 13/3 14/3 15/3 16/3 D/E ratio Record best ROA ROE mil /3 13/3 14/3 15/3 16/3 Net debt Record best /3 13/3 14/3 15/3 16/3 12/3 13/3 14/3 15/3 16/3-5 17

19 Ⅲ. Business forecast for the fiscal year ending March 31,

20 FY216 Forecast (Yen millions, %) 215/3 216/3 217/3 Forecast Results Results Year on year change Net sales 95,395 93,272 94, % Operating income 4,797 5,96 6, % Ordinary income 5,73 6,363 6, % Net profit 3,758 4,386 4, % Sales Automotive Parts: While there is uncertainty in economic growth rates in China, we will work to strengthen aggressive sales activities in Asia and China, and global automotive and scooter markets. Industrial Products: Expected sales expansion in Chinese markets, and introduction of agricultural and new environmental and energy-saving products. Advanced Elastomer Products: Aim to increase sales of high value-added products, and expand sales in growing optoelectronics markets for our precision abrasives and cleaning system products. Profit Expected operating income increases from optimum global production sharing, and improved profitability from thorough cost reduction activities at each production site. Profit improvement through full-scale operation of manufacturing innovations for conveyor belts and polyurethane belts, and further automation. 19

21 Transition in exchange rates Average rate during term Term-end rate FY214 Actual FY215 Actual FY216 Forecast 215/3 Actual 216/3 Actual 217/3 Forecast USD Euro Thai Baht Remnibi Korean Won

22 Transition in depreciation, capital investment and R&D expenses Depreciation Domestic capital investment Overseas capital investment R&D expenses (Bold, italic) /3 14/3 15/3 16/3 17/3 13/3 14/3 15/3 16/3 17/3 (forecast) (Unit: 1 mil) 21

23 Shareholder returns Transition in dividend per share Term-end dividend Mid-term dividend Lehman shock '8/3 '9/3 '1/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 (forecast) '17/3 (forecast) Dividend payout ratio 19.% % 23.7% 53.9% 3.2% 22.% 25.% 25.7% 25.% Dividend to be 12yen/share if share consolidation takes place October 1, 216. Share consolidation and trading units Share consolidation at a rate of two shares of common stock into one. Change in trading units Odd lot shares will be in units less than 1 shares (from 1) (Note) The share consolidation and change in trading units will take effect October 1, 216 if approved at the Annual General Meeting of Shareholders to be held June 23,

24 Topics 215 Apr BL Autotec, Ltd. introduced Japan s heaviest-duty tool changer, QUICK-CHANGE GIGA, with 7kg payload capacity. May Commenced innovations on Kakogawa Plant conveyor belt belt line and Ashikaga Plant precision belt line. QUICK-CHANGE GIGA Jul Sep Developed C-STRETCH, elastic strain sensors, sales of R&D kits, plans for mass production. Development of tension meters for cargo straps. Elastic strain sensor C-STRETCH Cargo strap tension meter Oct Sale of high-load Ceptor -Ⅹ toothed belts. Launch of light duty conveyor belts meeting EC regulations. Opened new sales company in Mexico for transmission belts. High-load toothed belt Ceptor -X Sunline Belts adapted to European Commission Regulations 216 Feb Sale of Bando Wiper Edge EX (sliding portion of machine tools) Bando Wiper Edge EX 23

25 This document contains certain forward-looking statements. These statements are not guarantees of future performance, which involves risks and uncertainties. In addition, this document is for information purposes only, and is not intended for solicitation of trading. 24