Financial Results for 1 st Half of FY2013

Transcription

1 1 Financial Results for 1 st Half of FY2013 November 26, 2013 The Nippon Synthetic Chemical Industry Co., Ltd.

2 2 Results of 1 st Half and Forecasts of FY2013

3 3 Results of 1 st Half and Business Environment ( :Billion) Sales 5.4 Operating income ( :Billion) st Half '11 2nd Half 1st Half '12 2nd Half 1st Half '13 2nd Half An increase in OPL Film sales and the depreciation effect of the yen resulted in an increase in profit. 0

4 Results of 1 st Half and Business Environment ( :Billion) Sales 5.4 Operating income (7.7) 6.4 ( :Billion) (52.9) 1st Half '11 2nd Half 1st Half '12 2nd Half 1st Half '13 2nd Half A year-on-year increase, including the profit of main consolidated subsidiaries as a result of a fiscal term change, though there in an issue of concern about OPL Film inventory adjustments in 3Q. Note: Figures in parentheses exclude the impact of main consolidated subsidiaries as a result of the fiscal term change

5 Forecast of FY2013 and Annual dividend ( :Billion) Sales Planned FY2013 annual dividend: Operating income (Forecast) (15.5) (102.3) FY10 FY11 FY12 FY12 FY13 ( :Billion) An increase in profit is expected for the full business year (including the profit of main consolidated subsidiaries as a result of a fiscal term change Note: Figures in parentheses exclude the impact of main consolidated subsidiaries as a result of the fiscal term change 5

6 6 Mid-Term Management Plan Double15 Third Year

7 Mid-Term Management Plan Double15 (1) Target of of FY2015 1) Sales JPY 130 Billion 2) Operating Income JPY 20 Billion 3) Operating Income Ratio More than 15% 1.Expansion of of core businesses 2.Establishment of of the third pillar and strengthening of of new products development 3.Competitive advantage 4.Expansion of of overseas bases 5.Assurance of of Safety, Quality, Environment, and Compliance 7

8 Mid-Term Management Plan Double15 (2) Sales ( :Billion) Sales Sales 130 Operating Income Operating Income ( :Billion) Operating Income 7.1 *113.0 *17.0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 (forecasts) (Note) Figures of FY2013 are based on the condition that the settlement of 12-month accounts is made, and asterisked figures are earnings forecasted for FY

9 9 Double 15 Progress 1 Expansion of of core businesses Production capacity increase OPL Film : The 6 th Line (18 million m 2 / year) Under construction in the Kumamoto Plant. Scheduled to come into operation in the first quarter of FY2014. Soarnol : New Line (15,000 tonnes/ year) Under construction on NOLTEX s site in the United States since this summer. Scheduled to come into operation in the forth quarter of FY2014.

10 Double 15 Progress 2 Establishment of of the third pillar and strengthening of of new products development Nichigo G-Polymer Developing planning to meet practical application demands is making progress by taking advantage of the biodegradability, melt-moldability, gas barrier properties, readily solubility, and chemical resistance of the products. Focusing on the adoption in the food packaging, hygiene material, and environmental energy fields. ORGA A cost reduction is going on along with production efficiency improvements and product quality improvements with the aim of substituting glass in the touch panel fields. Enhancement of research and development The new research building of the Central Research Laboratory is under construction.scheduled to be completed in the third quarter of FY

11 11 Double 15 Progress 3 Environment corresponding A city gas boiler was installed in the Ogaki Plant. Come into operation in March A biomass boiler was installed in the Kumamoto Plant. Come into operation in March A solar power generation equipment was installed in the Kumamoto Plant. Started power generation in November 2013.

12 12 Business Results of 1 st Half FY2013

13 13 Consolidated Business Results 1 st Half FY12 1 st Half FY13 Diff. ( :Billion) Sales (+ 9.6%) Operating income (+ 43.9%) Operating income ratio 12.0% 15.8% + 3.8% Ordinary income (+ 57.9%) Net profit (+ 49.8%)

14 14 Business Summary by Segment (1) ( :Billion) Sales Operating income Synthetic Resin 1 st Half 1 st Half 1 st Half 1 st Half Diff. Diff. FY12 FY13 FY12 FY Acetyl & Fine Chemicals Chemical Products Others Common Cost Total

15 Business Summary by Segment (2) Synthetic Resin OPL Film A year-on-year increase was recorded with a net increase of the 5 th line products (wider width products). Soarnol The sales increased due to the weaker yen though the sales remained at the previous year s level. Pressure-sensitive adhesive, functional coatings The sales of Shikoh were steady but the sales of Coponyl (Pressure-sensitive adhesive copolymer) showed a decrease on a year-on-year basis. Acetyl and Fine Chemicals Acetyl Chemicals The sales of some products decreased with the worsening of price spread. 15

16 16 Analysis of Operating Income ( :Billion) FY12 1 st Half Operating income 5.4 Sales price +1.2 including exchange effects (+0.7) Raw materials / UTY price 0.9 Volume +1.3 Fixed costs 0.5 Moving average, etc FY13 1 st Half Operating income 7.8

17 CAPEX, Depreciation, R&D Expenses Exchange rate, and Naphtha price 1 st Half FY12 1 st Half FY13 Diff. CAPEX Depreciation R&D Expenses CAPEX on acceptance basis JPY/US$ JPY/EURO Average rate Naphtha price (JPY/KL) 55,200 64,700 +9,500 Average price ( :Billion) 17

18 Balance Sheet End of FY12 Assets Current assets Fixed assets Period end exchange rate for Overseas subsidiaries(yen) End of Dec End of 1 st Half FY13 End of Jun US$ Diff. End of FY12 End of 1 st Half FY13 Liabilities and shareholder s equity Liabilities Net assets End of FY2012 Retained earnings +4.3 End of 1 st Half FY2013 Diff. Equity Equity Ratio 58.3% 61.9% +3.6% Debt D/E Ratio *Exchange rate effect is 4.3 billion of total asset increase. ( :Billion) Diff. 18

19 19 Cash Flow 1 st Half FY12 1 st Half FY13 Cash Flow from operating activities Cash Flow from investing activities Pre-tax profit difference: +2.6, Payment of income tax: 2.2 Fixed assets 1.6 ( :Billion) Free Cash Flow Cash Flow from financial activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at end of period

20 20 Business Forecasts of FY2013

21 21 Specific changes in FY Change in in depreciation method Depreciation method used by our company and some of our domestic consolidated subsidiaries was integrated into straight-line method. Depreciation cost: Decrease of 0.9 billion yen Change in in accounting period of of significant consolidated subsidiaries Impact of the fiscal year-end change of the six major domestic and overseas consolidated subsidiaries. (from the end of December to the end of March). Sales: Increase of 10.7 billion yen Operating income: Increase of 1.5 billion yen

22 22 Assumptions of 2 nd Half FY Exchange rate 1 st Half Ave. 2 nd Half Diff. JPY/US$ JPY/EURO Naphtha price (JPY // KL) 1st Half Ave. 2nd Half Diff. Naphtha 64,700 67,000 +2,300

23 CAPEX, Depreciation, R&D Expenses Exchange rate, and Naphtha price FY12 FY13 Diff. CAPEX Depreciation R&D Expenses CAPEX on acceptance basis JPY/US$ JPY/EURO Average rate Naphtha price (JPY/KL) 57,500 65,850 +8,350 Average price ( :Billion) 23

24 Consolidated Business Forecast of FY2013 ( :Billion) 1 st Half FY13 Sales 49.4 Operating income nd Half FY (10.7) 9.2 (1.5) FY (10.7) 17.0 (1.5) FY12 Actual FY11 Actual Operating income ratio 15.8% 14.5% 15.0% 12.9% 8.2% Ordinary income Net Profit Net Profit per share (yen) Cash dividends per share (yen) Figures in parenthesis indicate estimated forecasts for three months added due to a change of accounting period. 24

25 Consolidated Business Forecasts of FY2013 by Segment Sales ( :Billion) Operating income FY12 results FY13 forecast Diff. FY12 results FY13 forecast Diff. Synthetic Resin Acetyl & Fine Chemicals Chemical Products Others Common Cost Total FY2013 includes the estimated forecasts for three months added due to a change of accounting period. 25

26 26 Analysis of Operating Income ( :Billion) FY12 Operating income 11.8 Sales price +2.3 Raw materials / UTY price 2.0 Volume +2.6 Moving average, etc. Fixed costs change in including accounting period exchange +1.5 effects(+1.5) FY13 Operating income 17.0

27 Optical PVOH film OPL Film Specialty Materials Segment Performance Materials Department

28 Explanation Demands forecast of Polarizing plates Market trend of Polarizing plates Development concepts of OPL Film Thin film support of OPL Film Product line of OPL Film

29 Demand forecast of Polarization plate TFT-LCD Polarizer (thousand m2 ) 400, , , , , , ,000 50,000 0 In 2013, polarizer demand growth by 4% is forecasted. 29% 5% 16% Source: A materials of 25 th Display search forum in July % 8% 6% Q/Q 35% 30% 25% 20% 15% 10% 5% 0% 29

30 30 Market trend of Polarization plate LCD Panel trend Polarizer trend A profile and weight reduction centered on smartphones and mobile tablets Profile reduction Thin film Adoption of low- shrinkage material, Thin-film components, Reduction of component 4K2KTV High-definition mobile Battery durability improvements High definition Power saving High transmittance High polarization Realization of high-transmission, high-polarized light by high drawing performance, Color tone control Low-price competition centered on TV sets Cost reduction Cost reduction Reduction of materials costs Productivity improvements

31 Development concepts of OPL Film Development of bright film with good polarization performance Development of thin film and low shrinkage Expand of ultra-wide and super ultra-wide lines for good large panel production efficiency Film thickness Film thickness reduction Low shrinkage Next generation OPL Film High transmittance, high polarization Existing product Optical performance Uniformity Super ultra-wide, drawing performance improvements 31

32 32 Response to thin film of OPL Film Smart Phone 20~15 μm Smart Phone Tablet PC 30μm Tablet PC 60μm Note PC 75μm Large area LCD TV 4K2K TV 45μm LCD Monitor Large area LCD TV

33 Product lines of OPL Film Ohgaki Kumamoto 1 st 2 nd 3 rd 4 th 5 th 6 th Standard width Ultra width 2003~ 12 million m ~ 13 million m ~ 15 million m ~ 15 年 ~million 1,500 m 2 万m 年 ~ 15 million m 年 ~ 18 million m 2 Annual production capacity:present 70 million m 2 FY2014 1Q 88 million m2 33

34 34 Solution by Chemistry The amounts in this report are rounded down when less than a unit; percentages, etc. are round off. Further, the cumulative six months of the first and second quarters are the first half, and the cumulative six months of the third and fourth quarters are the second half. The business forecast and predictions in this report are calculated based on the information available at the time of writing. It is possible that the actual results may differ due to a variety of factors.

35 Appendix 35

36 36 Products List PVOH products IT's and electronic products Functional films (Gohsenol / Gohsenol EG) EVOH products Specialty polymers Acetyl chemicals Polyvinyl alcohol (PVOH) PVOH film (Gohsenx) (OPL Film) (Hi-Selon) (Bovlon) Fine chemicals Vinyl acetate < Ethylene-vinyl acetate copolymer (EVA)> (Soarblen) < Ethylene-vinyl alcohol copolymer (EVOH)> (Soarnol) (Soarlite) Ethylene <Poly-vinyl acetate (Gohsenyl) Methacrylic acid ester Acrylic acid ester <Synthetic resin emulsion (Mowinyl) / (Mowinyl-Powder) <Acrylic resin (Coponyl) Methanol Acetic acid Ethyl acetate Glyoxal Imidazole derivatives Ketene Sodium acetate Poly isocyanate Acrylic acid ester Polyhydric alcohol Polybasic acid <UV curable resin> < Saturated polyester resin> Sodium dehydroacetate Acetoacetic esters Valproic バルプロ酸 acid (Shikoh) (Nichigo-polyester)

37 37 Outlines of Segments Chemicals Synthetic Resins Acetyl & Fine Chemicals Others PVOH Resins, Films EVOH Resins Adhesive Resins Acetyl Chemicals Fine Chemicals

38 38 PVOH (Polyvinyl Alcohol) Gohsenol TM What is Gohsenol TM? Main Application Glass Feature Water solubility adherence Film forming properties, etc. Gohsenol TM Production capacities The Mizushima Plant 40,000 tonnes / y The Kumamoto Plant 30,000 tonnes / y Total 70,000 tonnes / y Used as raw material for PVOH films optical polarized PVOH film, etc. PVOH (a materials of PVB films) Glass Used as raw material for the bonding middle layer in safety glass for windshields Used as a surface coating agent for information industrial paper heat sensitive paper ink jet recording paper, etc.

39 Optical Polarized Film OPL Film TM What is OPL Film TM? To make polarizing film, OPL Film TM for polarizer is inserted between two layers of protective film called TAC film, and adherently processed to affix to LCD panel. OPL Film TM Production capacities million m 2 / y The Ogaki Plant million m 2 / y The Ogaki Plant million m 2 / y The Kumamoto Plant million m 2 / y The Kumamoto Plant million m 2 / y The Kumamoto Plant (Ultra-wide film) total 70 million m 2 / y Q +18 million m 2 / y The Kumamoto Plant 39

40 40 EVOH Soarnol TM What is EVOH? Feature High gas barrier Fragrance preservation Transparency, etc. Main application Polyolefin Adhesive resin EVOH Adhesive resin Polyolefin Nylon EVOH Nylon Polyethylen EVOH Soarnol TM is a package for preserving flavor and freshness. Soarnol TM Production capacities The Mizushima Plant 10,000 tonnes / y NOLTEX (U.S.A.) 23,000 tonnes / y NIPPON GOHSEI UK 18,000 tonnes / y Total 51,000 tonnes / y Q NOLTEX +15,000 tonnes / y

41 Pressure Sensitive Adhesives and Functional Coatings 41 Coponyl TM for LCD Mowinyl TM for Ink Jet Paper TAC film PVOH film TAC film Protective tape Adhesive Release film Adhesive resin for polarizing film for LCD Masking tape for surface protection Shikoh TM for Hard Coating A porous film is formed by incorporating colloidal silica Improved in ink-receiving, image clarity and chromogenic properties Nichigo Polyester TM for recording media Glossy retension and surface protection for CDs, DVDs, mobile phones and ATM touch-sensitive panels Cable coating and adhesion for copying machine and facimile machine

42 42 Overseas Sites NIPPON GOHSEI UK (Production of Soarnol ) NIPPON GOHSEI THAILAND (Sales, Technical service) Soarus (Sales, Technical service) NIPPON GOHSEI (Production of Soarnol ) NOLTEX NIPPON GOHSEI Europe (Sales, Technical service) NICHIGO SHANGHAI (Sales, Technical service)

43 43 Review of Operation Financial Highlights :Billion FY08 FY09 FY10 FY11 FY12 Sales (Synthetic resins) (Acetyl and Fine chemicals) (Others) Operating income (Synthetic resins) (Acetyl and Fine chemicals) (Others) (Common costs) Net profits Total Assets Debt Net Assets CAPEX Depreciation Net income profit per Share Net Assets per Share Cash dividends per Share Exchange rate, Naphtha price FY08 FY09 FY10 FY11 FY12 1$ Naphtha Average 58,925 41,175 47,450 54,900 57,500 Stock price per Share (March 31)

44 44 Naphtha Price (1Q/2010~3Q/2013) JPY /KL 70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 26,600 33,300 1Q/09 2Q3Q 41,200 42,500 4Q 49,700 47,700 1Q/10 2Q3Q 4Q 45,100 52,400 54,900 59,000 42,700 1Q/11 2Q3Q 4Q 51,700 60,600 1Q/12 2Q3Q 54,100 49,800 4Q 55,800 65,500 63,800 63,900 1Q/13 2Q3Q

45 Exchange rate (1Q/2010~3Q/2013) / $, / JPY Q/ Q 3Q 4Q 1Q/11 2Q 3Q Q 1Q/ Q 3Q 4Q 1Q/13 2Q 3Q

46 Stock information (as of September 30, 2013) Composition of Shareholders Authorized Shares 154,944,000 Outstanding Shares 97,403,112 (except 966,074 shares held by NIPPON GOHSEI) Number of Shareholders 5,112 Rank Shareholder s Name Rate 1. Mitsubishi Chemical Corporation 50.9% 2. The Master Trust Bank of Japan, LTD. (Trust Account) 2.9% 3. Japan Trustee Services Bank, LTD. (Trust Account) 2.7% 4. State Street Bank and Trust Company 2.0% 5. Trust & Custody Services Bank, Ltd. (Securities investment trust account) 1.5% 6. Japan Trustee Services Bank, LTD. (Trust Account 9) 1.4% 7. Mizuho Bank, LTD. 1.2% 8. Marubeni Corporation 1.0% 9. Resona Bank, LTD. 0.9% 10. NORTHEN TRUST CO. (AVFC) SUB A/C AMERICAN CLIENT 0.8% 46