FY 2015 Financial Results

Transcription

1 FY 2015 Financial Results (Fiscal Year Ended March 31, 2016) May 24, 2016 Iwatani Corporation Forward-looking statements in this document are based on management expectations and are not commitments or guarantees. Consequently, users of this document are requested to fully understand that results may vary from expectations.

2 Contents FY 2015 Overview Medium-Term Management Plan (PLAN18) and FY 2016 Forecasts 1

3 FY 2015 Overview 2

4 Performance for FY2015 (April 1, 2015 to March 31, 2016) FY15 Initial Forecast FY15 Results (A) FY14 Results (B) (Unit: Million Yen) Year-on-Year (A)-(B) Net Sales 700, , ,902 (75,700) Gross Profit - 154, , ,021 Operating Income 20,700 20,496 11,174 +9,321 Ordinary Income 21,000 21,584 12,761 +8,823 Profit attributable to owners of parent Changes in Scope of Consolidation *Impact of changes in scope of consolidation: Little 11,000 12,365 6,199 +6,165 FY15 Results (A) FY14 Results (B) Year-on-Year (A)-(B) Consolidated subsidiaries Equity method subsidiaries and affiliates (8) 3

5 Analysis of Net Sales 691,902 Net Sales Energy Industrial Gases & & Machinery Materials Agri-bio & Foods Others 691,902 Energy Changes in Net Sales (Unit: Million Yen) 8,712 27, , ,201 7,832 28, , ,918 (75,700) (10.9%) 164,459 +2,184 Materials +1,280 Others 616, , ,422 Industrial Agri-bio (76,169) Gases & & Foods (2,115) (880) Machinery FY14 FY15 FY14 FY15 4

6 Analysis of Operating Income Operating Income Energy Industrial Gases & & Machinery Materials Agri-bio & Foods Others 11, ,496 1,246 3,846 7,624 Changes in Operating Income +6,701 +1,299 Industrial Gases & Machinery +1,199 Materials +519 Agri-bio & Foods (Unit: Million Yen) Others (398) +9,321 (+83.4%) 2,647 Energy 6,324 9,049 11,174 20,496 2,347 (872) (1,270) FY14 FY15 FY14 FY15 5

7 Time-lag profits / losses Impact of LPG Import Price (CP) Fluctuations (General Overview) In a short term, Fluctuations in the LPG import price impact our performance. In a long term, if the LPG price returns to its former level, the net impact is zero*. (price) When price rises Sell relatively low-priced LPG inventory at high price When price falls Sell relatively high-priced LGP inventory at low price Sales price Positive impact on income Sales cost Income excluding impact of market factors Sales cost Negative impact on income Sales price Inventory period : about three months Methods for Valuating Inventory Assets : by the first-in, first-out method Sales price : Linked to average of the LPG import price in the previous and current month Sales cost : Linked to the LPG import price about three months ago *Actual performance may be influenced by inventory volume, timing (season) of sales, sales volume, and other factors. (month) 6

8 Changes in Operating Income- Energy 2,347 5,200 Reduction of decrease in profits due to LPG market factor Decrease in sales volume of LPG wholesale 1,200 1, Increase in sales of Industrial LPG - related equipment Expansion in number of LPG direct sales customers 1,000 Others (Unit: Million Yen) 9,049 +6, % FY14 LPG (Domestic residential use) FY15 7

9 Changes in Operating Income Industrial Gases & Machinery 6, Hydrogen Business (Including the Hydrogen Refueling Stations) Improvement in profitability of air-separation gases Reduced profitability of helium gas Reduced profitability of other gases Increase in sales of gas-related equipment (Unit: Million Yen) 7,624 +1, % Oxygen Nitrogen Argon FY14 FY15 8

10 Changes in Operating Income Materials 1,300 Increase in sales of Stainless steel Decrease in sales of Smartphone materials 110 (Unit: Million Yen) 3,846 2, Improved profitability of resin products Increase in profit of mining business Others +1, % FY14 FY15 9

11 Changes in Operating Income Agri-bio & Foods Others (Unit: Million Yen) 1, Increase in sales of sanitation business % 727 Increase in sales of frozen foods Increase in sales of agriculture and livestock business FY14 FY15 10

12 Balance Sheets (Consolidated Basis) (Unit: Million Yen) FY15(A) FT14(B) (A)-(B) Major factors for changes Current assets 175, ,809 (5,931) Property, plant and equipment 145, ,979 +8,024 Intangible assets 16,876 17,012 (135) Investments and other assets 66,721 73,023 (6,302) Fixed assets 228, ,015 +1,585 Total assets 404, ,824 (4,345) Decrease in accounts receivable and inventories caused by plunging LPG price Increased hydrogen refueling station-related investment, etc. Loss on valuation of investment securities Current liabilities 172, ,678 (20,188) Decrease in short-term borrowings Long - term liabilities 107,406 98,203 +9,202 Total liabilities 279, ,882 Reduction of interest-bearing (10,986) liabilities due to repayment of loans Equity capital 114, ,007 +5,774 (Equity capital ratio28.4%) Non-controlling interests 9,802 8, Net assets 124, ,942 +6,640 Total liabilities and net assets 404, ,824 (4,345) 11

13 Statements of Cash Flows (Unit: Million Yen) FY15 (A) FY14 (B) (A) - (B) Cash flows from operating activities 36,101 43,008 (6,907) Cash flows from investing activities (25,088) (20,476) (4,611) Free cash flows 11,013 22,532 (11,518) Cash flows from financing activities (9,969) (22,335) +12,365 Effect of exchange rate changes, etc. (14) 1,167 (1,181) Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period 1,028 1,363 (334) 21,804 20,440 +1,363 Cash and cash equivalents at end of period 22,833 21,804 +1,028 * Effect of exchange rate changes, etc. are the sum of Effect of exchange rate changes, Increase (decrease) in cash and cash equivalents due to changes in scope of consolidation and Increase in cash and cash equivalents resulting from merger with nonconsolidated subsidiaries. 12

14 Returns to Shareholders (Consolidated Basis) Dividend policy Paying continuous and stable dividends Returning our profits appropriately in consideration for our performance and business situation Dividend per share (yen) Payout ratio(%) Including commemorative dividend: 3 yen 13

15 Review of PLAN15 FY2018 Target <FY2015> Results Ordinary Income 22.0billion 21.5billion Ratio of ordinary income to total assets 5.3% or higher 5.3% Interest-bearing debt, gross 145.0billion 136.5billion Ratio of interest-bearing debt to total assets 35.0% or higher 33.7% Ordinary Income (billion) Ratio of ordinary income to total assets Total assets (billion) Interest-bearing debt, gross(billion) Ratio of interest-bearing debt to total assets 4.8% PLAN15 Target 5.3% 5.3% % PLAN15 Target % % 33.7% 35.0% FY2013 FY2014 FY2015 FY2015 FY2013 FY2014 FY2015 FY

16 Medium-Term Management Plan (PLAN18) FY2016 Forecasts 15

17 Basic Policies and Management Targets in PLAN18 Basic Policies Implement strategies for Growth and Expand our business foundation Management Targets <FY2018> Ordinary income Ratio of ordinary income to total assets Ratio of net income to equity capital 24.0 billion 5.5% or higher 10.0% or higher 16

18 Basic Strategies in PLAN18 1Energy distribution reform 2Promotion of a hydrogen society 3Strengthening of overseas businesses 4Start-up of new businesses 5Compliance 17

19 Net Sales and Operating Income Targets in PLAN18 Energy Industrial Gases & Machinery Materials Agri-bio & Foods Others Net Sales(billion) Operating Income(billion) (1.2) (2.3) (2.9) FY2015 FY2016 FY2018 FY2015 FY2016 FY

20 Forecasts: Energy ( billion) Net Sales FY2016 Major factors accounting for decrease / increase in operating income (FY2015-FY2016) Resolving losses from time-lag losses + Expanding LPG consumers + Expansion of industrial LPG + Expansion of consumer products and energy-related equipment - fiercer competition caused by electricity liberalization FY2015 FY2016 FY2018 ( billion) - Increase in depreciation associated with large-scale investment PLAN18 Major factors accounting for decrease / increase in operating income (FY2016-FY2018) + Expanding LPG consumers + Expansion of industrial LPG + Expansion of consumer products and energy-related equipment - Increase in depreciation associated with large-scale investment <Assumption of financial performance> Ave. CP USD 370/ton, Ave. exchange rate 110 Yen/USD 19

21 Forecasts: Industrial Gases & Machinery ( billion) Net Sales FY2016 Major factors accounting for decrease / increase in operating income (FY2015-FY2016) + Expansion of sales various industrial gas, machinery and equipment - Increase in cost of our own H2 station FY2015 FY2016 FY Impact on appreciating Japanese yen in our overseas consolidated subsidiaries ( billion) Operating Income PLAN18 Major factors accounting for decrease / increase in operating income (FY2016-FY2018) Expansion of sales various industrial gas, machinery and equipment + Expansion of H2 station instrument and service FY2015 FY2016 FY Increase in cost of our own H2 station and H2 manufacturing plant 20

22 Forecasts: Materials ( billion) Net Sales FY2016 Major factors accounting for decrease / increase in operating income (FY2015-FY2016) FY2015 FY2016 FY2018 ( billion) Operating Income + Expansion of sales of stainless, PET resin and Zircon sand - Suspended mining in the mineral business in Western Australia - Impact on appreciating Japanese yen in our overseas consolidated subsidiaries PLAN18 Major factors accounting for decrease / increase in operating income (FY2016-FY2018) Business expansion of biomass fuel business such as PKS FY2015 FY2016 FY Restart of mining in the mineral business in Western Australia 21

23 Forecasts: Agri-bio & Foods ( billion) Net Sales FY2016 Major factors accounting for decrease / increase in operating income (FY2015-FY2016) Decrease in the large demand of agricultural equipment FY2015 FY2016 FY2018 ( billion) Operating Income PLAN18 Major factors accounting for decrease / increase in operating income (FY2016-FY2018) Development new business in Foods Division + Expansion of plant factory sales + Expansion of seed pig sales FY2015 FY2016 FY

24 The Revised Version of the Strategic Roadmap for Hydrogen and Fuel Cells Outlook for the Spread of Fuel Cell Vehicles (FCVs) and Hydrogen Stations FY2030: Commencement of installation for hydrogen power plant FY2016; Introduction of FC Bus Practical realization of FC forklift Source: Strategic Roadmap for Hydrogen and Fuel Cells, revised version 23

25 Our effort to realize hydrogen society Achievement of constructing 20 stations by FY2015 Shiba-park Ikegami Ota-ku 東京池上 Hydrogen Refueling Stations Kansai International Airport Sendai 24

26 Our effort to realizing hydrogen society Strengthening of supply capabilities of liquid hydrogen Yamaguchi Liquid Hydrogen Corporation Brown coal mine in state of Victoria, Australia 25

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