2Q 2017 Performance Results

Transcription

1 2Q 2017 Performance Results INDUSTRIES, INC. August 10, 2017 Ø All 2Q 2017 management performance and financial data in this report are consolidated or parent earnings results based on K-IFRS. Ø The operating profit in this report was rewritten considering the changes made in 'indicating financial statements' of financial accounting standards Ø This report has been drawn up for investors without receiving complete external auditing. It must be considered that some data may be revised in the process of external auditing. Ø The data contains prospective information for the future, including the company s business prospect in the 3Q 2017 and further on. The prospective information has been drawn up considering the current market condition and the company s business strategy at present. Accordingly, it should be taken into consideration that this information may be modified depending on the environmental changes of markets and the company s strategic alteration.

2 CONTENTS 1. Performance results overview P Q 2017 Performance 2_1 Divisional Results 2_2 Non-operating Profit & Loss 2_3 Debt and Financial ratio P.5 P.10 P Appendix 3_1 Statement of Financial Position 3_2 Statement of Income(Consolidated) 3_3 Statement of Income(Non-consolidated) 3_4 Cash Flows 3_5 Group Structure P.12 P.13 P.14 P.15 P.16 2

3 1. Results overview Industrial Material Percentage of Sales Chemical Film/electronic materials Fashion Percentage 24% of Sales Fashion material, etc 1,573 1,669 1,759 1, % 1,039 1,274 1,019 Percentage of Sales 18% Percentage of Sales % 1,315 1,249 1,152 1, % Percentage of Sales Functional fibers - Polyester tire cord, airbag cushion, technical yarn High performance fibers - Aramid Non-woven fabrics - Artificial leather, spunbond, membrane filter Subsidiary( GLOTECK, PLASTICS) - Fabric & yarn for car seat, Engineering plastic Hydrocarbon resin - For glue, paint, diaper, sanitary towel Phenolic resin - For industrial glue, cast, abrasive cloth, paint Epoxy resin - For electronic circuit, epoxy molding compound Polyester Film - For packaging, optical film, solar protect film, industrial use film Electronic materials - Light diffuser film/plate, prism film, dry film resist, overcoat Outdoor, sports, golf - SPORT, HEAD, ELORD, Jack Nicklaus, HONMA Men wear, casual - CAMBRIDGE MEMBERS, Customellow, Series Accessory, women wear - COURONNE, Suecomma Bonnie, Lucky Chouette Polyester chip Subsidiary( FASHION MATERIAL) - Polyester yarn and fabric for clothes - Nylon yarn and fabric for clothes Etc 3

4 1. Results overview 2Q16 3Q16 4Q16 1Q17 2Q17 Sales 1,134 1,037 1,240 1,150 1,124 OP (OPM) 78 (6.8%) 48 (4.6%) 65 (5.2%) 46 (4.0%) 54 (4.8%) Pre-tax profit Net profit ü Sales was similar YoY due to good performance of main items, but declined QoQ due to decrease in byproduct sales of hydrocarbon resin. ü Despite the one-off voluntary resignation cost, operating profit increased QoQ due to improvement of profitability of main items. ü Pre-tax profit and net profit increased QoQ due to increase in equity method income. 4

5 2_1. Divisional Results Industrial materials Consolidated earnings (Kolon Industries, Kolon Glotech, Kolon Nanjing Co.,LTD, Kolon Plastics, etc) ,573 1,669 1,759 1, % % 7.5% % % 32 2Q16 3Q16 4Q16 1Q17 2Q17 Sales OP OPM ü Despite weaker performance of Kolon Glotech s subsidiaries in China, OP in 2Q increased QoQ due to higher spreads of main items from the price drop in raw materials. 5

6 2_1. Divisional Results Chemical Consolidated earnings (Kolon Industries, (SUZHOU) COMPANY LIMITED) ,274 1,039 1, % 12.5% 11.5% 9.9% 11.4% Hydrocarbon resin 2Q16 3Q16 4Q16 1Q17 2Q17 Sales OP OPM Phenolic resin ü Sales decreased QoQ due to decline in by-product sales of hydrocarbon resin from the drop in naphtha price. ü Solid performance in hydrocarbon resin and decreased raw materials price for phenolic resin caused OP to rise QoQ. Epoxy resin 6

7 2_1. Divisional Results Film/Electronic Materials Consolidated earnings (Kolon Industries, KIN, KHC, etc) % -0.4% -2.3% -2.6% % Q16 3Q16 4Q16 1Q17 2Q17 DFR PET Film Sales OP OPM ü Operating deficit reduced slightly due to increased price of food packaging films. 프리즘필름 CPI Film 7

8 2_1. Divisional Results Fashion Consolidated earnings (Kolon Industries, etc) 1,315 1,249 1,152 1, % % % % % 12 (Ⅰ) Outdoor (Ⅱ) Sports & Golf 2Q16 3Q16 4Q16 1Q17 2Q17 Sales OP OPM (Ⅲ) Man ü Despite the contraction of domestic market and investment in online distribution channels, OP in 2Q slightly increased QoQ from the strong sales in Accessory&Woman and golf related goods. (Ⅳ) Casual (Ⅴ) Accessory&Woman 8

9 2_1. Divisional Results Fashion material, etc Consolidated earnings (Kolon Industries, Kolon Fashion Material, etc) % -5.2% -15.4% -9.7% -9.2% (Ⅰ) Kolon Industries Q16 3Q16 4Q16 1Q17 2Q17 Sales OP OPM (Ⅱ) Kolon Fashion Material ü Operating loss continued in 2Q due to one-off voluntary resignation cost. 9

10 2_2. Non-operating Profit & Loss (Unit: Wbn) Q15 2Q15 3Q15 4Q Q16 2Q16 3Q16 4Q Q17 2Q17 Operating Profit Other income(losses) Finance income(losses) Gain (loss) on disposal of investments in associates and joint ventures Pre-tax Income ü Improvement in other income from the increased foreign exchange (fx) related income. ü Increased equity method income of HANA Captial. Equity Method Income(losses) on Investments (Unit: Wbn) SKC PI HANA Capital (Share : 27.0%) (Share : 42.6%) Q16 1Q17 2Q17 2Q16 1Q17 2Q17 10

11 2_3. Debt and financial ratio Change in borrowings / Net Debt Ratio Consolidated Kolon Industries 1,809 1,681 2,001 2,043 1,859 1,963 Total Debt 1,266 1,264 1,439 1,436 1,488 1,486 80% 88% 89% Net Debt Net Debt Ratio 77% 86% 86% 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 Financial ratio 2Q16 1Q17 2Q17 Interest Coverage Ratio(Times) Debt ratio (%) 136% 150% 144% Capital ratio (%) 42% 40% 41% Total borrowings and bonds payable to total assets (%) 36% 38% 38% 2Q16 1Q17 2Q17 11

12 3_1. Statement of financial position H2017 Total assets 4,720 4,749 4,986 5,249 5,376 Current assets 1,938 1,938 1,945 2,068 1,966 Non-current assets 2,782 2,811 3,041 3,182 3,410 Liabilities 2,774 2,740 3,022 3,124 3,177 Current liabilities 1,686 1,744 1,828 1,953 1,902 Non-current liabilities 1, ,193 1,171 1,275 Equity 1,946 2,009 1,964 2,125 2,199 Controlling Shareholders' Equity 1,818 1,884 1,832 1,981 2,058 Capital Capital Surplus Treasury Stock Consolidated Retained Earnings Accumulated Other Comprehensive Income IFRS(Consolidated) Hibrid Bond Non-Controlling Interests Equity

13 3_2. Income Statement (Consolidated) Q15 2Q15 3Q15 4Q Q16 2Q16 3Q16 4Q Q17 2Q17 Sales 5,338 1,201 1,235 1,148 1,274 4,857 1,151 1,134 1,037 1,240 4,562 1,150 1,124 Ind. Materials 1, , , Chemical 1, , Film Fashion 1, , , Others Operating profit Ind. Materials Chemical Film Fashion Others Other income(losses) Finance income(losses) Equity method income (losses), losses on Sale of Equity Securities Pre-tax profit Net profit EBITDA

14 3_3. Income Statement (Non-consolidated) Q15 2Q15 3Q15 4Q Q16 2Q16 3Q16 4Q Q17 2Q17 Sales 3, , , Ind. Materials Chemical 1, Film Fashion 1, , , Others Operating profit Ind. Materials Chemical Film Fashion Others Other income(losses) Finance income(losses) Equity method income (losses), losses on Sale of Equity Securities Pre-tax profit Net profit

15 3_4. Cash Flows(Consolidated) H17 Beginning Net Profit Depreciation Amortization Acquisitions of Tangible Acquisitions of Intangible Dividends Paid Others Ending

16 3_5. Group structure CHAIRMAN 47.4% CORPORATION Manufacturing company Audi Dealer Pharmaceutical company IT service company Environmental company Construction & trading company 32.2% 99.3% 20.3% 48.1% 31.5% 51.0% 99.5% 62.3% INDUSTRIES AUTO LIFE SCIENCE PHARM TissueGENE BENIT ECO ONE GLOBAL 88.9% 90.0% NANJING(KNC) SUZHOU INDUSTRIES equity structure 78.8% 79.8% PT INA GLOTECK 47.1% Common Share 25,152, % CORPORATION National Pension Service KB Asset Management (As of 10 th August, 2017) (As of 30 th June, 2017) (As of 30 th April, 2017) 66.7% PLASTICS(KPL) 7.4% 13.3% Other 66.7% FASHION MATERIAL(KFM) 16