Third Quarter of Fiscal Year Ending December 31, 2017 Financial Performance Unicharm Investor Meeting Presentation Materials

Transcription

1 Third Quarter of Fiscal Year Ending December 31, 2017 Financial Performance Unicharm Investor Meeting Presentation Materials November 10, 2017 Takahisa Takahara President and CEO Unicharm Corporation Projections stated herein include those based on forecasts and plans as of now. Therefore, actual results may differ significantly from projections due to risks and uncertainties associated with market competition, foreign exchange rates, etc. Copyright (c) 2012 Unicharm Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

2 Financial Performance Summary: Third Quarter of Fiscal Year Ending December 31, 2017 Document notations BC: Baby Care Business FC: Feminine Care Business HC: Health Care Business C&F:Clean & Fresh Business PC: Pet Care Business Copyright (c) 2012 Unicharm Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

3 Third quarter of fiscal year ending December 31, 2017 Financial performance summary Actual consolidated results (Sales and core operating profit record high) billion JPY (7.5% increase) in sales, core operating profit of 66.6 billion JPY (26.0% profit increase) Sales and core operating profit both reached the total estimates for the third quarter also since first half of the year, and are steadily advancing toward the yearly estimates. Japan (5.1% increase in sales and 19.1% increase in profit for core operating profit) For Baby Care business, good performance in expanding exporting baby diaper from Japan to China, and ongoing profitability improvement For Health Care business, profitability improvement through expansion of value-added products in light and medium incontinence products Overseas (9.2% increase in sales and 41.3% increase in profit for core operating profit) Increase of 10.6% in sales, 50% in profit in core operating profit for Asia, and 10.2% in profitability improvement In China, continual good performance for EC Feminine Care business drive China business performance, Marketing investment actively conducted in Baby Care business, high growth of importing baby diapers and pants-type baby diapers, proceed preparation renewal of local diapers, sales and core operating profit growth in July-September Profitability improved in Indonesia while maintaining overwhelming market share For North American Pet Care business, sales of products using Japanese technology are improving favorably, increasing income and profit. Full-year forecast (Published Figures) Considering the risks of future environmental changes, etc., no changes to full-year forecast. Shareholder return Purchase of own shares 14 billion JPY, 5,110,000 shares acquired Dividend per share 18 JPY annual dividend scheduled (increase of 2 JPY) 3

4 7.5% sales increase, 26.0% core operating profit increase (Record high) Sales and profit steadily advancing toward the yearly estimates Consolidated account highlights (Millions of yen) 3Q of FY Ended Dec. 31, Q of FY Ending Dec. 31, 2017 Difference Difference (%) (Forecast) FY Ending Dec. 31, 2017 Progress (%) 433, , , % 630, % Core operating income 52,878 (12.2%) 66,632 (14.3%) +13, % (+2.1%P) 84,000 (13.3%) 79.3% Profit before tax 48,625 (11.2%) 66,966 (14.4%) +18, % (+3.2%P) 77,000 (12.2%) 87.0% Profit attributable to owners of parent 32,390 (7.5%) 43,622 (9.4%) 11, % (+1.9%P) 49,000 (7.8%) 89.0% Basic earnings per share (JPY) % USD Rate (JPY) % CNY Rate (JPY) % Adoption of IFRS from 17/1Q and 16/3Q was calculated based on IFRS. 4

5 Active marketing investment contributed to sales volume increase, raw material cost fluctuation and others contributed to 13.7 billion JPY profit increase Core operating income fluctuation (100 millions of yen) Selling and administrative expense rate 0.3%P increase Gross profit rate 1.8%P improvement Q of FY Ended Dec 31, 2016 Sales promotion costs Advertising costs Freight Other Materials, etc. Productivity improvement, etc. Effect of rate on income 3Q of FY Ending Dec 31,

6 In Japan, Baby Care business, Health Care business, and Pet Care business drive performance In Asia, China and India, greatly improved profit Geographical segment information 3Q of FY Ended Dec. 31, 2016 *1 3Q of FY Ending Dec. 31, 2017 Difference Difference (%) (Millions of yen) *1 (Ref.) Actual difference Japan Core operating income 180,540 35,328 (19.6%) 189,798 42,072 (22.2%) +9,258 +6, % +19.1% (+2.6%P) Asia Core operating income 182,131 13,639 (7.5%) 201,417 20,463 (10.2%) +19,285 +6, % +50.0% (+2.7%P) +7.7% +46.0% Others *2 Core operating income 70,539 3,553 (5.0%) 74,377 3,831 (5.2%) +3, % +7.8% (+0.2%P) +5.2% +2.4% Reconciling items, etc. Core operating income Consolidated Core operating income 433,210 52,878 (12.2%) 465,592 66,632 (14.3%) +32, , % +26.0% (+2.1%P) +6.2% +24.8% *1: Adoption of IFRS from 17/1Q and 16/3Q was calculated based on IFRS. Actual difference rate except exchange effects. *2 Others: Main regions are U.S.A., Saudi Arabia, Brazil, the Netherlands 6

7 In Japan, improved profitability with high value-added products and expanding exporting In Asia, China, Indonesia, and India, improved profitability Core operating income margin by geographical segment 25.0% *1 Japan Asia Others Consolidated 22.2% 20.0% 15.0% 15.3% 13.7% 13.7% 13.6% 13.3% 13.7% 15.8% (IFRS19.6%) 14.7% 14.3% 10.0% 12.9% 12.8% 12.0% 12.5% 11.2% 11.1% 9.4% 10.1% (12.2%) 10.2% 5.0% 3.3% 5.5% 0.8% 1.9% 7.4% 2.8% 6.2% (7.5%) 4.6% (5.0%) 5.2% 0.0% '11/3Q '12/3Q '13/3Q '14/3Q '15/3Q '16/3Q 17/3Q *1 Others: Main regions are U.S.A., Saudi Arabia, Brazil, the Netherlands *2 Irregular results due to change in settlement period. *3: Core operating income margin for 17/3Q based on IFRS. *2 *3 7

8 In Pet Care business, improve profit by increasing unit price based on high value-added products in Japan In North America, also improve profit due to shifting to high value-added products. Business segment information 3Q of FY Ended Dec. 31, 2016 *1 3Q of FY Ending Dec. 31, 2017 Difference Difference (%) (Millions of yen) Personal Care Core operating income 374,900 47,937 (12.8%) 403,877 60,037 (14.9%) +28, , % +25.2% (+2.1%P) Pet Care Core operating income 53,907 4,668 (8.7%) 57,048 6,681 (11.7%) +3,141 +2, % +43.1% (+3.0%P) Others *2 Core operating income 4, (6.2%) 4, % Reconciling items, etc. Core operating income Consolidated Core operating income 433,210 52,878 (12.2%) 465,592 66,632 (14.3%) +32, , % 26.0% (+2.1%P) *1: Adoption of IFRS from 17/3Q and 16/3Q was calculated based on IFRS. *2 Others: Products related to industrial materials, etc. 8

9 Overseas sales composition ratio 59.6% (59.1% excluding exchange effects) Japan / Overseas sales (Billions of yen) % 50.4% 32.9% 36.5% 57.2% 42.0% 64.4% 61.7% 58.1% 59.6% 49.3% 46.0% 43.2% 43.0% 70% 60% 50% 40% 30% 20% % 0 *1 *2 '11/3Q '12/3Q '13/3Q '14/3Q '15/3Q '16/3Q '17/3Q Japan sales (left scale) Asia overseas sales (left scale) Other overseas sales (left scale) 0% Asia sales ratio (right scale) Overseas sales ratio (right scale) *1: Fiscal year ended Dec. 31, H is an irregular fiscal year lasting nine months. *2: IFRS applied starting FY 17. 9

10 Effects of exchange fluctuations: Sales: Approx. 5.5 billion JPY increase Core operating income: Approx. 0.7 billion JPY increase Rate fluctuations by currency Currency Rate for 3Q of FY ended Dec Rate for 3Q of FY ending Dec Rate Change China (CNY) % Indonesia (IDR) % Thailand (THB) % Saudi Arabia (SAR) % India (INR) % Vietnam (VND) ±0.0% USA (USD) % Taiwan (TWD) % Netherlands (EUR) % South Korea (KRW) % Australia (AUD) % Malaysia (MYR) % Egypt (EGP) % Brazil(BRL) % Russia (RUB) % 10

11 Shareholder Return Policy Copyright (c) 2012 Unicharm Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

12 Continued dividend increase in FY 2017 and total return ratio of 50% scheduled through the purchase of own shares and dividends linked to business performance Shareholder return policy (Millions of yen) 30,000 25,000 20, % 49.5% Dividends Purchase of own shares Total return ratio 55.6% 53.9% 51.4% 47.8% 44.7% 40.3% 38.3% 53.2% 50.0% 60.0% 50.0% 40.0% 15, % 10, % 5, % 0 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12 '15/12 '16/12 '17/12E *1 *1: Fiscal year ended Dec. 31, 2014 is an irregular fiscal year lasting nine months. By prioritizing business investment in order to achieve continuous growth while paying out stable and continuous dividends based on the growth of mid-to-long term performance, and carrying out the swift purchasing of our own shares if necessary, we plan on a profit return with a goal of total return ratio of 50% (estimated payout ratio of 20%) in addition to shareholder dividends and purchase of own shares. 0.0% 12

13 Swiftly acquire stocks through buy-back based on cash conditions 14 billion JPY, 5,110,000 shares already acquired Stock buy-back acquisition graph (100 millions of yen) '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12 '15/12 '16/12'17/12E *1 *1: Fiscal year ended Dec. 31, 2014 is an irregular fiscal year lasting nine months. 13

14 Steady and continuous dividend payments On track for 16 consecutive periods of increased dividends Dividends per share (JPY) On track for 16 consecutive periods of increased dividends in fiscal '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12 '15/12 '16/12 '17/12E *1 *1: Fiscal year ended Dec. 31, 2014 is an irregular fiscal year lasting nine months. 14

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