Financial Report. (January 1 ~ June 30, 2012) Sumitomo Rubber Industries, Ltd.

Transcription

1 Financial Report (January 1 ~ June 3, 212) Sumitomo Rubber Industries, Ltd.

2 Key Subjects nd Quarter Financial Results Summary Changes in Scope of Consolidation, Major Affiliated Companies Financial Results Summary 212 Financial Results Projection Financial Results Projection Summary Capex/Depreciation, Tire Production Capacity etc. 1 Changes in Consolidated Subsidiaries Scope of Consolidation Consolidated Subsidiaries 66 (+1) Equity-method affiliates 14 (-2) Unconsolidated Subs. 5 Affiliated companies 9 # of changed Companies Newly included 2 Excluded (1) Newly included - Excluded (2) SUMITOMO RUBBER DO BRASIL LTDA. Dunlop Hokkaido Co., Ltd. Hiroshima Rubber, Ltd. Kyoshin, Ltd. Srixon South Africa (PTY) Ltd. (Merged with Dunlop Marketing Co., Ltd.) (Merged with Dunlop Tire Chugoku Ltd.) 2

3 Sumitomo Rubber Group Major Subsidiaries Tire business business Industrial & Other Overall Control Dunlop Tire Sales HQS. OE:Dunlop Goodyear Tires GY brand:goodyear Japan Export:SRI Tire Trading Dunlop (Former SRI ) Hybrid Rubber Products HQS. Sales Manufacture Service Affiliates Domestic wholesale companies (11) Domestic wholesale companies(3) Overseas wholesale company Overseas wholesale company (U.S/EU/Asia/Russia/Thailand/China (Canada/Euro/Asia/Australia /Middle East/Latin America) /China/Hong Kong) Tire Overseas Factories: Indonesia, Thailand, China(Changshu), China(Hunan) Under construction: Brazil Dunlop Retread Service Nakata Engineering SRI USA SRITP (Holding Co.) JV:GDTE,GDTNA Naigai Rubber Tochigi SEI GSGPC,GSGTL Domestic factory: Dunlop Golf Club Overseas Factory: Roger Cleveland Golf Company Tennis ball factory:thailand SRI Engineering, SRI Systems, SRI Logistics Golf Course Wako Tennis Dunlop Home Products Sumigomu Sangyo Hong Kong Sumirubber Zhongshan Sumirubber Sumirubber Vietnam Sumirubber Malaysia 66 Subsidiaries 14 Affiliates 3 Consolidated Financial Results Jan. -Jun. Jan.-Mar. Apr.-Jun. Jan.-Jun. May. 9 th Feb.14 th Sales % % % Operating Income (%) 16. (9.6%) 165% (9.8%) 162% (9.7%) 163% (8.5%) 27. (8.3%) Ordinary Income (%) 17. (1.2%) 161% (8.%) 161% (9.1%) 161% (8.2%) 25. (7.7%) Net Income % % % Equity Income.2 (.4)..1.2 (.4).2-4

4 Consolidated Sales / Income (Jan.-Jun.) Jan. -Jun. 4 Sales Ordinary Income % Operating Income % = Ordinary Income / Sales ratio New High % (.6) Net Income '7 '8 '9 '1 '11 '12 (5) (6.9) - (7.6) (1) 5 6.7% % % 16.4 Net Sales / Operating Income by Industry Segment Jan. -Jun. Jan.-Mar. Apr.-Jun. Jan.-Jun. May. 9 th Feb.14 th Tire % % % Sales Industrial & Others % 97% % 18% % 12% Consolidated % % % Operating Income Tire Industrial & Others Consolidated % 211% 88% 165% % 391% 1574% 162% % 286% 151% 163%

5 Consolidated Operating Income by Industry Segment (Jan.-Jun.) Jan. -Jun (5) 28. Consolidated Operating Income Tire (2.4).6 Industrial (.6) '7 & Others '8 '9 '1 '11 '12 7 Consolidated Operating Income by Geographic Area(Jan.-Jun.) Jan. -Jun. Sales '7Q2 '8Q2 '9Q2 Japan Asia Other Total '1Q2 '11Q '12Q (5.) Japan Consolidated Operating Income Asia (3.7).3.9 Other (.6) '7Q2 '8Q2 '9Q2 '1Q2 '11Q2 '12Q2 8

6 Overseas Sales (Jan.-Jun.) Jan. -Jun. 15. Overseas Sales North America Europe Asia Other Sales Percentage of Overseas 45% '7Q2 '8Q2 '9Q2 '1Q2 '11Q2 '12Q % % 52% 52% 51% 9 Consolidated Ordinary Income Walk (Jan.-Jun.) Jan. -Jun (2.4) '12Q2 (3.4) (3.2) '11Q Raw Material Price 14.7 Volume & Mix Natural Rubber 1. Pet. Related (9.9) Others.5 Natural Rubber 1. Pet. Related (8.) Others.6 Direct Costs Fixed Costs Exchange Rate USD 82 8 EUR AUD (.4).5(3.3) 3.3 May.9 th Proj (2.1) (2.5) 1.8 (.1) (.4)(.7)(4.5)Total 8.1 '11 '12 (25.3) (.6).5 (2.9) (.3) (1.1).6 (1.6)Total.1 1 FOREX Industrial & Others SGA Other income,loss Equity income Euro / N.A. JV's.6.2

7 Consolidated Results Projection () Sales Operating Income (%) Ordinary Income (%) Net Income Equity Income (9.4%) 61. (8.5%) Actual (8.%) 49.9 (7.4%) % 124% 122% 113% May. 9 th (8.9%) 58. (8.2%) Jul.-Dec. Aug.9 th (9.1%) 3.7 (8.%) % 12% 8% (1.7) ROE 15.2% 14.7%.5P 14.8% Interest-bearing debt (4.2) Consolidated Sales / Income (27~212 ) % =Profit %, New High % Sales 8.% % 7.9% % 5 Operating Income % 5.5% % 4.2% % Ordinary Income % % 1. Net Income 9.1 '7 '8 '9 '1 '11 '12 12

8 Net Sales / Operating Income by Industry Segment () Sales Tire Industrial & Others Consolidated Actual % 18% 19% 16% May. 9 th Jul.-Dec. Aug.9 th % 14% 116% 11% Operating Income Tire Industrial & Others Consolidated % 137% 137% 124% % 64% 128% 12% 13 Consolidated Ordinary Income Walk (Jul. ~ Dec. ) Jul.-Dec Natural Rubber 14. Pet. Related 1.1 Others..6 (3.9).5 (2.3) (1.1) (.8) (.7) '11 '12 Raw Material Price (7.8) Natural Rubber 1.8 Pet. Related (2.9) Others 1.1 Volume & Mix Direct Costs Fixed Costs (.4) (1.7)(1.5)(4.6) May. 9 th 9. (2.9).6.3 (2.2). (.4).6 (1.7)(1.4)(1.9) Total. '1 '11 (29.9) (2.) (2.9).4 (.4) 2.1 (.6)(2.3) Total FOREX Euro / N.A. JV's 1.7. Industrial & Others Other SGA Other income, loss Equity income

9 Consolidated Ordinary Income Walk (212 ) Natural Rubber 24. Pet. Related (8.8) Others.5 ' Raw Material 1.8 Price.2 Volume & Mix Natural Rubber 2.8 Pet. Related (1.9) Others 1.7 Price Natural Rubber (TSR 2) WTI.9 Direct Costs Exchange Rate USD 8 79 EUR AUD Q 2Q 3Q 4Q Ave ($/kg) ($/bbl) (3.5) (4.2) Fixed Costs Euro / N.A. JV's (11.) 61. May. 9 th (4.3) (2.5) (2.1)(2.1)(6.4) Total 8.1 '1 '11 (55.2) (2.6) (2.4) (2.5) (.7) 1. (.)(3.9) Total FOREX Industrial & Others SGA Other income,loss Equity income (2.1) (1.) (7.9) '12 Consolidated Ordinary Income Analysis Period 11 1Q 2Q 2H Ordinary Income vs Pre. Year 7.4 Raw Material.4 (1.5) (.3) (14.8) 7.3 (29.9) (55.2) Price Volume & Mix Direct Costs..3 (.9).9 (.9) (2.) (2.9) 2.6 Fixed Costs (2.6) Factor FOREX (2.4) Equity income (1.2) (.1) (.5). (1.2) (1.7) (.2) (.6).6 (.4).4 (.4) 2.1 (.6) (2.3) (2.5) Industrial & Others (.7) Other SGA 1. (.) (3.9) 1Q 2Q 12 2H (.4) 11.1 (2.5) (3.9) (2.3).2.5 (.2).6.9 (2.) (.4) (1.1) (3.5) (1.1) (2.3) (.8) (4.2) (.7) 1.4 (.1) (.4). (1.7) (2.1).7 (.2) (1.5) (1.) (1.5) (1.8) (4.6) (7.9) vs May. 9th Proj 1H (2.) (.3) (.9) H - (.4) 6.1 (1.) (2.9) (.8) (.3) (.1) (.9).4.8 (1.7)..3. (.1) (2.7). 1.1 (1.5) 16

10 Tire Sales Volume (Comparison %) 211 ACT 212 Jan.-Jun.ACT, Jul.-Dec. 212 May.9th Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Jun Jul-Dec Domestic O.E. 78% 68% 16% 88% 136% 151% 15% 98% 119% 14% 98% 116% Overseas O.E. 119% 97% 119% 97% 18% 13% 118% 114% 153% 121% 115% 137% 126% Domestic Rep. 112% 12% 19% 1% 19% 11% 93% 11% 15% 1% 96% 12% Overseas Rep. 15% 112% 113% 17% 13% 1% 11% 11% 11% 14% 14% 14% Total 13% 98% 11% 17% 14% 17% 16% 13% 16% 15% 18% 16% 17% Total Tire Sales(units) 21,74 21,74 24,89 26,51 94,88 23,27 22,95 25,57 28,5 99,84 46,83 54,16 1,98 Overseas Rep North America Asia Middle East Europe &Russia 91% 127% 46% 146% 89% 17% 76% 13% 92% 115% 94% 151% 95% 11% 12% 131% 92% 114% 81% 14% 1% 95% 161% 13% 16% 116% 15% 67% 115% 9% 92% 115% 9% 91% 11% 11% 15% 89% 15% 14% 127% 94% 112% 87% 18% 12% 18% 13% 12% 17 Tire Overseas Rep. Volume by Regional Segment Third party overseas Rep Sales by SRI / Foreign Subs units Numbers shown in the bar graph are yoy % by region 117% % % % % '7 '8 '9 '1 '11 ' % N. America S. America Europe & Russia Africa Middle East Asia Oceania Forex($) (Rates applied for sales) 18

11 Shareholders' Equity / Interest-bearing debt Shareholders' d/e ratio Equity '7/12 '8/12 '9/12 '1/12 '11/12 '12/6 '12/12 Shareholders'Equity Ratio Interest-bearing debt 33.9% 28.3% 3.5% 3.5% 29.4% 31.3% 31.6% times Cash Flow Jan.-Jun (1) (2) (3) Operating activity (28.4) 16. (13.8) (29.8) (2.5) Free CF (.7) (17.) (23.6) (22.9) Billion (32.3) (4) Investing (5) activity '7 '8 '9 '1 '11 '12 Interest bearing debt

12 Capex and Depreciation Capex Tangible Assets only Depreciation '6 '7 '8 '9 '1 '11 '12 Overseas Change in depreciation methods(4.) 21 Tire Production Capacity yoy 11% 19% 19% 15% 14% 15% 16% t/mth 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, 34,17 37,3 4,7 42,65 44,45 46,55 49, ,4 4,2 2,35 9,15 5,85 1,1 1,15 4,35 4,2 2,45 9,2 5,85 1,1 3,4 5,15 4,2 2,7 9,2 5,9 1,15 3,95 5,95 4,45 2,7 9,35 6, 1,25 5,6 6, 4,45 2,7 9,35 6, 1,35 8,2 6,65 5,1 75 9,35 6,15 1,35 1,5 6 6,65 5,1 75 9,35 6,15 1,35 '6/12 '7/12 '8/12 '9/12 '1/12 '11/12 '12/12 Overseas ratio ' 7 26% ' 8 31% ' 9 34% ' 1 36% ' 11 43% ' 12 46% Thailand China(Hunan) China(Changshu) SURINDO Izumiotsu Miyazaki Nagoya Shirakawa 22

13 t 6 Tire Production Volume and Operating Ratio yoy 14% 19% 19% 84% 124% 18% 16% 94 Operating ratio Group production volume st Half % '6 '7 '8 '9 '1 '11 '12 28 Jan.-Sep. Oct.-Dec. Operating ratio 92% Factory temporary shutdown - 2days 29 Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Operating Factory ratio temp. shutdown 71% 7days 74% 4days 84% - 88% - 21 Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Operating ratio 9% 94% 94% 96% 5 23 Sales in the Business Results & Projection Golf Clubs Golf Balls Golf Shoes, Accessories & Others Golf goods Tennis goods Licensing income goods business Other business Total 212 2Q Jan.-Jun Q Jan.-Jun % 111% 11% 113% 115% 16% 113% 112%

14 New Products / New Technology The Influence of Raw mat. Price rise & Raising of Tire Prices ( v.s '2) Raising of Tire Prices Raw mat. Price rise 19.2 (57.6) (8.) Net (38.4) (65.6) Net (37.5) (36.7) (12.3) Net (51.9) (8.1) 28.6 (73.7) Net (13.3) (3.6) (14.3) Net (35.) (55.2) (159.5) Net (42.3) (39.5) 15.7 (143.8) Net (15.8) '3~ '6 '7 '8 '9 '1 '11 '12 26

15 Market Price: Natural Rubber Naphtha /kl Q1 US /Kg Naphtha Price (prod. in Japan) 4Q1 5Q1 6Q1 7Q1 8Q1 NR SICOM TSR2 (Ave.) NY Crude Oil Price 9Q1 1Q Q1 12Q ' '1 '2 '3 '4 '5 '6 '7 '8 '9 '1 '11 '12 $/bbl US /Kg NR SICOM TSR2 Monthly Move Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Trend of Raising of tire prices Domestic REP: Whole Sale price for sales co. May. '4 avg. 5% Sep. '5 4 ~ 4.5% Apr. '6 4 ~ 4.5% Feb. '7 5% Apr. '8 5% Sep. '8 5% Mar. '11 7% (TB) May. '11 7 ~ 1% Sep. '11 8% (TB) Overseas REP: '4 3% '5 3% '6 3% '7 3~6% '8 5~1% '9 5~1% '11 5~1% 27 END 28