Kurita Water Industries Ltd.

Transcription

1 Results Presentation for the Year Ended March 31, 28 Kurita Water Industries Ltd. ( Stock code : 637 ) May 9, 28

2 Table of Contents Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29

3 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, Financial Highlights Business Development Orders, Net Sales, Operating Income, and Operating Income Margin Water treatment chemicals Water treatment facilities (for the electronics industry) Water treatment facilities (for general industries) Service Business Revenue Overseas Businesses Capital Expenditures, Depreciation, and R&D Expenses Assets, Liabilities, and Net Assets

4 1 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 1 Financial Highlights 27/3 28/3 Year-on-year change Orders % Net Sales % Operating Income % Ordinary Income % Net Income %

5 2 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 2 Business Development Water Treatment Chemicals Business Improved domestic product mix Overseas growth contributing to higher sales Absorb the surge in raw material prices by reducing costs, boosting revenue, and improving product mix Water Treatment Facilities Business Increased sales to electronics industries on the back of a favorable domestic market environment Steady expansion in service businesses Improved hardware profitability

6 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 3 Orders, Sales, Operating Income, and Operating Income Margin Water treatment chemicals Water treatment facilities Total * denotes projections Orders Sales /3 28/3 27/3 28/ Operating Income Operating Income Margin ( % ) /3 28/3 27/3 28/3 3

7 4 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 4 Water treatment chemicals Orders and Sales Operating Income and Operating Income Margin Orders Sales * denotes projections Operating income Operating income margin * denotes projections (%) /3 28/3 27/3 28/3 Major areas of growth Cooling water treatment chemicals; Paper/pulp process treatment chemicals (Japanese market) Overseas subsidiaries Major determinants of change Improved domestic product mix Surge in raw material prices Higher revenues overseas

8 5 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 5 Water treatment facilities (for the electronics industry) Orders and Sales Operating Income and Operating Income Margin Orders Sales * denotes projections Operating income Operating income margin * denotes projections (%) /3 28/3 27/3 28/3 Orders/sales growth areas Wafers, semiconductors, ultrapure water supply, tool cleaning (Japanese market) Major determinants of income growth Increased revenue / improved profitability for domestic hardware Increased revenue from the ultrapure water supply business

9 6 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 6 Water treatment facilities (for general industries) Orders and Sales Operating Income and Operating Income Margin Orders Sales * denotes projections Operating income Operating income margin * denotes projections (%) /3 28/3 27/3 28/3 Major areas of orders growth Iron and steel, oil refining, petrochemicals Major areas of sales declines Iron and steel, food, public sector demand Major determinants of income growth Improved hardware profitability

10 7 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 7 Service Business Revenue 2 Water treatment chemicals Water treatment facilities (services) Water treatment facilities (hardware) Service Business Revenue in the Water Treatment Facilities Business 9.8 * denotes projections (+8.3) Ultrapure water supply business Tool cleaning Soil remediation Maintenance, etc. 27/3 28/3 27/3 28/3

11 8 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 8 Overseas Businesses Sales by Region Sales by Overseas Business Segment Asia N. America Europe Other * denotes projections Water treatment chemicals Water treatment facilities * denotes projections /3 28/3 27/3 28/3

12 9 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 9 Capital Expenditures, Depreciation, and R&D Expenses Capital Expenditures and Depreciation R&D Expenses Capital expenditures (ultrapure water supply business) Capital expenditures (excl. ultrapure water supply business) Depreciation * denotes projections R&D Expenses Percentage of net sales * denotes projections 3 6 ( % ) /3 28/3 27/3 28/3

13 1 Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 28 1 Assets, Liabilities, and Net Assets Assets Liabilities and Net Assets ( - 9.3) Cash, deposits and Marketable securities ( ) Liabilities ( - 6.1) Other current assets Tangible fixed assets Net assets ( ) ( - 2.9) Mar. 27 Mar. 28 Other fixed assets ( ) Mar. 27 Mar. 28

14 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, Overview Key Assumptions Strategic Focuses for the Fiscal Year Ending March 31,29 (1) Expansion of Service (2) Overview of the Ultrapure Water Supply Business (3) Ultrapure Water Supply Business (Trends) (4) Ultrapure Water Supply Business (Trends)-2 (5) Expand Ultrapure Water Supply Business (6) Expand Overseas Businesses Orders, Sales, Operating Income, and Operating Income Margin Water treatment chemicals Water treatment facilities (for the electronics industry) Water treatment facilities (for general industries) Capital Expenditures, Depreciation, and R&D Expenses Profit Distribution Policy

15 11 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 1 Overview 28/3 29/3 (Projected) Year-on-year change Orders % Net Sales % Operating Income % Ordinary Income % Net Income %

16 12 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 2 Key Assumptions Water Treatment Chemicals Business Operating rates maintained in the domestic materials sector and at electronics plants Client companies: continued strong productivity increases, cost cutting efforts, and environmental requirements Continued expansion of Asian economies Continued rise in raw material prices Water Treatment Facilities Business Growing demand in the ultrapure water supply business Temporary pause in large capital expenditures in the domestic electronics industry Overseas capital expenditure: Signs of a recovery for LCDs; Uncertainty for semiconductors Continued capital investment in the domestic materials sector

17 2 1 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 3 Strategic Focuses for the Fiscal Year Ending March 31,29 Water treatment chemicals Water treatment facilities (services) Water treatment facilities (hardware) (1) Accelerate Expansion of Service Businesses 213. Service Business Revenue in the Water Treatment Facilities Business (+1.9) Ultrapure water supply business Tool cleaning Soil remediation Maintenance, etc /3 29/3 (Projected) 28/3 29/3 (Projected) 13

18 14 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 3 Strategic Focuses for the Fiscal Year Ending March 31,29 (2) Overview of the Ultrapure Water Supply Business Raw water Pretreatment facility Reclaimed water Wastewater reclaim system Kurita Construction(CAPEX) Ownership(Capitalize) Operation/Management Maintenance Client Factory Ultrapure water production system supply of ultrapure water Semiconduction/FPD manufacturing process Wastewater treatment facility payment of fees Wastewater Client Pays fees based on volume of water used Discharge

19 15 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 3 Strategic Focuses for the Fiscal Year Ending March 31,29 (3) Ultrapure Water Supply Business (Trends) to domestic large-scale LCD plants to domestic large-scale plasma display panel (PDP) plants to domestic large-scale LCD plants to domestic semiconductor plants to domestic wafer plants to domestic semiconductor plants to domestic large-scale LCD plants to LCD plants in Singapore 22/3 23/3 24/3 25/3 26/3 27/3 28/3 29/3

20 16 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 3 Strategic Focuses for the Fiscal Year Ending March 31,29 (4) Ultrapure Water Supply Business (Trends)-2 Completed LCD industrial complex (conceptual image)

21 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 3 Strategic Focuses for the Fiscal Year Ending March 31,29 (5) Expand Ultrapure Water Supply Business Capital Expenditures and Total Cumulative Investment Sales Capital expenditure (left axis) Total cumulative investment (right axis) /3 27/3 28/3 29/3 (Projected) 26/3 27/3 28/3 29/3 (Projected) 17

22 18 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 3 Strategic Focuses for the Fiscal Year Ending March 31,29 (6) Expand Overseas Businesses Sales by Region Sales by Overseas Business Segment 4 Asia N. America Europe Other Water treatment chemicals 4 Water treatment facilities /3 28/3 29/3 (Projected) 27/3 28/3 29/3 (Projected)

23 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 4 Orders, Sales, Operating Income, and Operating Income Margin Water treatment chemicals Water treatment facilities Total Orders Sales /3 29/3 (Projected) 28/3 29/3 (Projected) 3 Operating Income ( % ) 17 Operating Income Margin /3 29/3 (Projected) 28/3 29/3 (Projected) 19

24 2 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 5 Water treatment chemicals Orders and Sales Operating Income and Operating Income Margin Orders Sales Operating income Operating income margin (% ) /3 29/3 (Projected) 28/3 29/3 (Projected) Major areas of growth Japan: Cooling water treatment chemicals, paper/pulp process treatment chemicals Overseas: China, Thailand, Europe Major determinants of change Improved domestic product mix Higher revenues overseas Surge in raw material prices

25 21 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 6 Water treatment facilities (for the electronics industry) Orders and Sales Operating Income and Operating Income Margin Orders Sales Operating income Operating income margin (%) /3 29/3 (Projected) 28/3 29/3 (Projected) Major determinants of change Decrease in domestic hardware Growth in the ultrapure water supply business Major determinants of change Decreased revenue from domestic hardware Increased revenue from the ultrapure water supply business

26 22 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 7 Water treatment facilities (for general industries) Orders and Sales Operating Income and Operating Income Margin Orders Sales Operating income Operating income margin 6 6 (% ) /3 29/3 (Projected) 28/3 29/3 (Projected) Major areas of sales growth Iron and steel Major determinants of change Increased revenue from domestic hardware

27 23 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 8 Capital Expenditures, Depreciation, and R&D Expenses Capital Expenditures and Depreciation R&D Expenses Capital expenditures (ultrapure water supply business) Capital expenditures (excl. ultrapure water supply business) Depreciation R&D Expenses Percentage of net sales (%) /3 29/3 (Projected) 28/3 29/3 (Projected)

28 24 Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 29 9 Profit Distribution Policy (Yen) /3 26/3 27/3 28/3 29/3 (Projected) Basic Dividend Policy Kurita s basic policy is to maintain stable dividends, and the company will work to increase dividends while giving due consideration to trends in results and investments in its businesses.

29 Reference Materials

30 25 Reference Materials Analysis of Changes in Operating Income for the Fiscal Year Ended March 31, 28 3 Rise in prices of primary chemical products resulting from the surge in raw material prices Increase in personnel expenses Increase in advertising and promotional expenses Increase in research and development expenses Improved domestic product mix in chemicals Improved cost ratio for the hardware segment of the facilities business /3 Higher cost Higher Effect of Effect of 28/3 of raw SG&A improved higher materials expenses cost ratio* income* * Effects of improved cost ratio and higher income are calculated using the gross profit margin. Cost ratio refers to the sales-to-cost ratio.

31 Kurita Water Industries Ltd. U R L MAIL ir@kurita.co.jp Forward-looking Statements This presentation contains forward-looking statements, business plan projections, and judgments based on information available to management at the time of writing. Due to the existence of a variety of risk factors and uncertainties, actual results may differ from those specified or implied by these forward-looking statements and projections.