FY2017 Supplemental IR information

Transcription

1 FY217 Supplemental IR information (FYE March 218) May 8, 218 FUJI OIL HOLDINGS INC.

2 Table Of Contents 1 Consolidated profit and loss summary 3 2 Key points of financial accounting 3 3 Operating profit analysis 4 4 FY217 Consolidated balance sheets 5 5 FY217 Consolidated cash flow 5 6 Consolidated benchmarks 5 7 Revenues, Operating profit (By segment) 6 8 Revenue, operating profit (by region, division) Group administrative expenses are indicated externally 7 Reference Revenue, operating profit (by region, division) Group administrative expenses are included in each segment 8 9 Fuji Oil (Japan) BY major product; Domestic sales volume, revenue (YoY) 9 1 Medium-term strategic products Sales volume (YoY) 9 11 Market prices for major related raw materials (Market prices for major related raw materials / Major currency ra 1 12(1) Japan (By area) 11 12(2) Asia (By area) 11 12(3) Americas (By area) 12 12(4) Europe (By area) Capital expenditures, depreciation expenses history Dividends history Medium-Term Management Plan Progress Topics 14 2

3 1. Consolidated profit and loss summary Revenue Operating profit Ordinary profit FY216 FY217 YoY FY218 Rate of Rate of Cumulative Cumulative Change forecast Change increase increase 1,94 1, % 1, % 1,44 1, % 1, % (12) (3.1)% % 2,925 3, % 3, % % 73 () (.6)% % % (1) (4.5)% % ーーーー (37) (4) +12.4% % % 6.7% 6.7% (.1)pt - 6.6% (.1)pt % % % % EBITDA % % ROE 8.3% 8.8% +.5pt - 8.8% (.1)pt ー Cash flows from operating activities % % Cash flows from investing activities (138) (145) (8) (5.5)% (196) (51) (35.1)% Free cash flow % 16 (31) (22.6)% Net interest-bearubg loans (93) (17.6)% % Net operating capital % 637 (12) (1.8)% Net interest-bearing loans/ebitda 1.8x 1.5x (.3)x ー 1.3x (.2)x ー CCC (Cash conversion cycle) 11 days 13 days 7 days shortening ー 1 days 3 days Shortening From FY218, Fuji Oil (THAILAND)'s segment was changed from Oils and Fats to Confectionery and Bakery Ingredients. Up to FY217, we distributed corporate expenses between segments but from expenses FY218 corporate expenses are recorded as corporate. The values for FY218 adjusted value and rate of change exclude FY217 corporate expenses. Reference (external recording of group administrative expenses) FY216 FY217 Rate of Change Cumulative Cumulative increase Oils and Fats % Operating profit % (1) (1.4)% (26) (33) (7) (26.4)% 2. Key points of financial accounting FY217 All incomes represent record high earnings Oils and Fats : Despite the impact of rising raw material costs in Japan and Europe, overall income increased thanks to favorable sales of low trans fat oils in North America Confectionery and Bakery Ingredients Oils and Fats Confectionery and Bakery Ingredients Oils and Fats Confectionery and Bakery Ingredients FY218 Oils and Fats : In Japan, income decreased due to increased energy costs and increased operating expenses but overall income is largely unchanged year on year thanks to improved profitability in Europe. Confectionery and Bakery Ingredients Total Consolidated adjustment / group administrative epenses Total Operating margin Net income attributabnle to Owners of parent Confectionery and Bakery Ingredients Consolidated adjustment / group administrative epenses (Unit: JPY 1 million) Despite decreased income from the emulsified and fermented products division, overall income increased thanks to improved profitability for chocolate in Japan and South America Despite favorable sales of high value-added products (protein ingredients, Water-soluble soy polysaccharides), income decreased due to the partial suspension of operations in some plants for facilities investments and lower sales in China Cash flow from operating activities increased YoY by 11.7 billion yen to 28.2 billion yen, exceeding the progress outlined for our medium-term goal of 1 billion yen in 4 years CCC was shortened by approximately 7 days YoY to 13 days mainly thanks to a shorter turnaround on inventory assets. Planning for increased income on income recovery for the emulsified and fermented products division and increases sales of chocolate South America ing increased income in Japan thanks to continued efforts to expand sales of high valueadded products and increased income in China thanks to expanded sales of functional agents YoY ー ing cash flow from operating activities to increase YoY by 2 billion yen to 3.2 billion yen, due to increased pre-tax income and increased depreciation expenses. CCC was shortened by approximately 3 days to 1 days mainly thanks to improved turnaround for accounts receivable, inventory assets, and trade payables. 3

4 3. Operating profit analysis 4

5 4. FY217 Consolidated balance sheets FY216 -end FY217 -end Current assets 1,325 1,324 Accounts receivable increased, () inventory assets decreased Fixed tangible assets increasaed, Fixed assets 1,397 1,396 () goodwill decreased, other fixed assets decreased Total assets 2,721 2,72 (1) intrest-bearing loans (91) Other liabilities (4) Total liabilities 1,166 1,71 (95) Total net assets 1,555 1, FY217 Consolidated cash flow FY216 FY217 YOY Income before income taxes Depreciation and amortization other changes (12) (15) +15 Cash frows from operating activities Cash frows from investing activities (138) (145) (8) Free cash flow Loan procurements/ repayments 38 (29) (129) Dividend payments, acquisition of treasury stock, etc. (94) (43) +51 Cash frows from financing activities (57) (135) (78) Net increase in cash and cash equivalents (35) Changes incidental to new consolidations and eliminations vs.end of previous FY (5) 2 +7 (Unit: JPY 1 million) Major factors of change Accounts payable increased, other current liabilities increased, other fixed liabilities decreased. Income surplus increased, foreign currency translation adjustments decrease (Unit: JPY 1 million) Major factors of change Cash and cash equivalents at end of period (Note)Depreciation expenses includes depreciation expenses for both tangible fixed assets and intangible fixed assets. Change in cash and cash equivalents inckudes conversion differences rekated to cash and cash equivalents. 6. Consolidated benchmarks FY214 FY215 FY216 FY217 FY218 Full-year Full-year Full-year Full-year (Unit: JPY 1 million) Capital Expenditures Depreciation expenses Interest-bearing loans Net assets (excluding holdings by non-controlling 1,456 1,423 1,57 1,62 1,6 Net assets per share (JPY) 1,694 1,656 1,754 1,864 1,861 Total assets 2,236 2,669 2,721 2,72 2,723 Equity ratio 65.1% 53.3% 55.4% 58.9% 58.8% D/E ratio ROE 6.8% 6.4% 8.3% 8.8% 8.8% ROA 6.3% 5.7% 7.3% 7.3% 7.6% Operating profit margin 5.2% 5.9% 6.7% 6.7% 6.6% (Note) Depreciation expenses indicates depreciation expenses for tangible fixed assets. Net assets indicates net assets related to common stock excluding holdings by non-controlling interests. D/E Ratio = interest-bearing debt / net assets (holdings by non-controlling interests) ROE = net income / net assets ROA = ordinary income / total assets 5

6 7. Revenue, Operrating profit (By segment) Oils and Fats (Unit:JPY 1 million) FY216 FY217 FY218 Cumulative Cumulative Revenue 1,61 1,132 1,171 YoY ー 6.7% 3.4% Operating profit Operating margin 6.5% 6.5% 6.2% YoY ー 5.9% (.6)% (JPY 1M) Oil and Fats Operating profit FY216 FY217 FY218 Confectionery and Bakery Ingredients (Unit:JPY 1 million) FY216 FY217 FY218 Cumulative Cumulative Revenue 1,473 1,564 1,668 YoY ー 6.2% 6.6% Operating profit Operating margin 8.% 8.3% 8.2% YoY ー 9.5% 5.6% (JPY 1M) Cofectionery and Bakery Ingredients Operaitng profit FY216 FY217 FY218 (Unit:JPY 1 million) FY216 FY217 FY218 Cumulative Cumulative Revenue YoY ー (3.1)%.3% Operating profit Operating margin 9.1% 9.3% 1.7% YoY ー (1.4)% 15.6% (JPY 1M) Operating profit FY216 FY217 FY218 Total (Unit:JPY 1 million) FY216 FY217 FY218 Cumulative Cumulative Plan Revenue 2,925 3,76 3,22 YoY 1.7% 5.2% 4.7% Operating profit Operating margin 6.7% 6.7% 6.6% YoY 16.9% 4.% 4.% Due to the realignment of Fuji Oil Thailand (Oils and Fats Confectionery and Bakery Ingredients), results are presented after retroactive adjustments. Group administrative expenses are not recorded within operating income of each segment. (JPY 1M) 25 Group administrative expenses: 2,617 million (FY216), 3,39 million (FY217), 3,711 million (FY218 ) Total Operating profit FY216 FY217 FY218 6

7 8. Revenue, operating profit (by region, division) Group administrative expenses are indicated externally (1).Revenue Consolidated revenue Oil and Fats Confectionery and Bakery Ingredients Revenue total FY ,617 (667) 24,985 4,28 32,5 1,326 23, (974) 117,1 3, ,284 (1,379) 2,777 1,472 31,174 3,92 23,974 3, ,211 7, ,663 19,35 27,254 2,842 16, ,184 4,694 36,615 3,298 22, 2, ,8 1, , ,317 6,259 19,621 2,62 156,429 9, ,636 27,58 17, , ,699 (291) 3, , ,99 (1,116) 3,14 (15) 38,4 (1,222) ,16 3,119 39, ,5 3,736 65, 7,89 54,5 3,75 23, (974) 322, 14, ,764 (1,642) 57,11 7,626 5,795 5,982 23,974 3,132 37,645 15, ,46 49,484 44,813 2, ,547 (Note) The Above revenue are revenue to outside customers (revenue after eliminating inside sales). (2).Operating profit Consolidated operating profit (Unit: JPY 1 million) Group administrative Consolidated FY Japan Asia Americans Europe Eliminated expenses Total Oil and Fats Confectionery and Bakery Ingredients Consolidated adjustment Group administrative expenses Operaing profit total Japan Asia Americas Europe (Unit: JPY 1 million) 218 2,31 (54) 1, ,61 (218) ,28 (47) 217 2,841 (189) 1, , (427) 7 3 7, ,3 1,411 1, , , ,665 (53) 1, (1) 13, , , , ,944 1, ,655 2, (27) 11, , , , (21) 7 (98) 3,518 (5) 216 2, , (36) 7 (7) (196) (71) (7) (3) 7 14 (232) (4) (7) (292) Consolidated total 218 (3,711) (43) (3,711) (43) 217 (3,39) (692) (3,39) (692) 216 (2,617) (2,617) , , , (3,711) (43) 21, , , ,69 1, (427) (24) 6 (3,39) (692) 2, ,875 4,385 2, (84) (2,617) 19,694 Key points From FY218, we have changed format so that corporate expenses recorded for the Group main office and certain area management company are indicated separately. Due to the realignment of Fuji Oil Thailand (Oils and Fats Confectionery and Bakery Ingredients), results are presented after retroactive adjustments.group administrative expenses are not recorded within operating income of each segment. Japan : We are planning for decreased income from fats and oils due to higher energy costs and increased operating expenses. We expect a recovery in profitability for the emulsified and fermented products division of the confectionary and bakery ingredients business. Furthermore, we forecast increased income on sales growth for Asia: In Southeast Asia and China, we will conduct marketing to expand sales of hard butters for chocolate, chocolate, cream, margarine, and filings (new China plant scheduled to launch operations in 2H), and we will increase soy income by expanding sales of high value-added soy products. Americans: North America - We worked to maintain profitability amid full capacity production for oils and fats but income decreased. South America - ing increased income on a recovery in volume thanks to sales growth for new chocolate products Europe: ing increased income on chocolate sales growth and on no longer being impacted by the high raw materials prices seen during the previous fiscal year 7

8 (Reference) Revenue, operating profit (by region, division) Group administrative expenses are included in each segment (1).Revenue Consolidated revenue Oil and Fats Confectionery and Bakery Ingredients Revenue total FY ,284 (1,379) 24,596 1,996 31,174 3,92 23,974 3, ,3 7, ,663 22,6 27,254 2,842 19, , ,498 5,735 19,621 2,62 152,61 8, ,636 23,763 17, , ,99 (1,116) 3,14 (15) 38,4 (1,222) ,16 3,119 39, ,764 (1,642) 57,11 7,626 5,795 5,982 23,974 3,132 37,645 15, ,46 49,484 44,813 2, ,547 (Note) The Above revenue are revenue to outside customers (revenue after eliminating inside sales). (2).Operating profit Consolidated operating profit (Unit: JPY 1 million) Consolidated FY Japan Asia Americans Europe Eliminated Total Oil and Fats Confectionery and Bakery Ingredients Consolidated adjustment Operaing profit total Key points Japan Asia Americas Europe 217 2,253 (261) 1, , (433) 7 3 6, ,514 1,492 1, , ,183 (298) 2, , , ,481 2, (27) 1, , (263) 7 (97) 2,569 (121) 216 1, , (55) (7) (4) 7 14 (248) (3) (7) (293) ,923 (376) 4, ,629 1, (433) (4) 44 2, ,299 4,419 2, (84) 19,694 The actual business results before the realignment of Fuji Oil Thailand. Group administrative expenses are distributed to each segment. (Unit: JPY 1 million) Consolidated total 8

9 9. Fuji Oil (Japan) By major product; Domestic sales volume, revenue Oils for food processing Hard butters for chocolate Oils and Fats Chocolate Cream Margarine / shortening Food ingredients Confectionery and Bakery Ingredients protein materials protein foods Functional agents Raw milk protein Total (YOY %) FY FY 217 FY 218 1Q 2Q 1st half 3Q 4Q 2nd half Volume 14% 99% 91% 95% 84% 9% 87% 91% 97% Sales 11% 17% 97% 12% 91% 93% 92% 97% 97% Volume 19% 15% 9% 97% 12% 1% 11% 99% 99% Sales 16% 11% 89% 94% 99% 99% 99% 97% 98% Volume 15% 99% 91% 95% 86% 91% 88% 92% 98% Sales 12% 15% 94% 99% 93% 94% 93% 96% 98% Volume 14% 99% 11% 1% 99% 17% 13% 12% 99% Sales 15% 99% 1% 99% 99% 13% 11% 1% 1% Volume 97% 93% 15% 98% 11% 11% 11% 14% 12% Sales 96% 89% 15% 96% 17% 111% 19% 13% 15% Volume 99% 1% 94% 97% 98% 1% 99% 98% 11% Sales 96% 1% 96% 98% 99% 99% 99% 99% 17% Volume 75% 63% 1% 8% 11% 94% 12% 9% 18% Sales 73% 69% 14% 86% 124% 112% 118% 11% 15% Volume 97% 95% 1% 97% 12% 13% 13% 1% 11% Sales 98% 97% 11% 99% 12% 12% 12% 11% 13% Volume 1% 15% 16% 15% 1% 1% 1% 13% 16% Sales 97% 11% 12% 11% 97% 99% 98% 1% 18% Volume 97% 94% 99% 97% 84% 81% 83% 89% 13% Sales 98% 94% 11% 98% 84% 84% 84% 91% 14% Volume 18% 16% 111% 18% 96% 99% 98% 13% 112% Sales 18% 18% 114% 111% 97% 12% 1% 15% 116% Volume 97% 92% 13% 98% 16% 93% 99% 98% 11% Sales 94% 93% 13% 98% 18% 94% 11% 99% 14% Volume 11% 95% 99% 97% 97% 96% 96% 97% 14% Sales 99% 1% 14% 12% 93% 94% 93% 97% 19% Volume 11% 97% 96% 96% 93% 96% 95% 95% 1% Sales 99% 1% 1% 1% 98% 98% 98% 99% 13% Note) Due to an internal change in reporting categories, certain values may differ from materials distributed in the past. 1.Medium-term strategic products Sales volume (YOY %) FY FY 217 Fy 218 1Q 2Q 1st half 3Q 4Q 2nd half Asia 114% 93% 98% 95% 133% 111% 122% 19% 13% Hard butters for chocolate Americas 17% 89% 89% 89% 76% 88% 82% 85% 117% Europe 12% 113% 91% 12% 1% 15% 12% 12% 93% Total 19% 95% 93% 94% 16% 12% 14% 99% 118% Asia 116% 12% 118% 119% 135% 12% 116% 117% 119% Chocolate Americas 12% 1% 72% 89% 91% 89% 9% 89% 111% Europe 113% 114% 16% 11% 14% 11% 12% 15% 112% Total 17% 16% 84% 99% 16% 95% 1% 1% 114% Cream Asia 12% 93% 112% 15% 131% 136% 134% 119% 131% Margarine / shortening Asia 112% 112% 114% 113% 116% 14% 11% 11% 113% Filling Asia 152% 16% 159% 16% 178% 145% 159% 16% 117% Water-soluble soy polysaccharide USS Volume 18% 16% 111% 18% 99% 13% 11% 15% 113% Volume 129% 129% 117% 123% 123% 86% 14% 114% 125% 9

10 11. Market prices for major related raw materials market prices for major related raw materials for international markets of major raw materials that could influence our Groups business, this is a list of benchmarks for yen-converted prices and thus may differ from actual market prices for raw materials used. usage periods and allowance assignment periods differ by half a year to reflect our Groups raw material allowance timing. Transitions in Major relevant raw material markets (after yen conversion) Market prices from Oct. 1, 215 set to 1. major currency rates P/L:FY average rate,b/s:year-ebd rate FY216 FY217 vs. FY218 -end -end Difference Change forecast $ BRL 元 P/L P/L P/L P/L % 12.4% 5.3% 1.6% B/S B/S B/S B/S (3.49) (1.59) (3.)% (4.4)% 1.% 3.2% Our group uses exchange contracts for purchasing 1

11 12(1). Japan (By area) (JPY 1M) 2, Revenue (JPY 1M) 2 Operating profit 1,5 15 1, FY16 FY17 FY18 (Unit: JPY 1 million) FY216 FY217 FY218 Revenue 1,774 1,758 1,795 YoY (1.4)% (.9)% +2.1% Operating profit Operating margin +8.4% +8.5% +8.5% YoY ー +.7% +2.3% FY16 FY17 FY18 12(2). ASIA (By area) (JPY 1M) In FY217, income decreased for emulsified and fermented products mainly due to high raw material prices but overall income increased thanks to firm chocolate sales and sales growth for high value-added soy products. In FY218, income from fats and oils will decline due to higher energy costs and increased operating expenses but we forecast overall income to increase thanks to improved profitability for confectionary and bakery ingredients as well as increased income on sales growth for high valueadded soy products. Revenue (JPY 1M) 6 FY16 FY17 FY18 FY16 FY17 FY18 (Unit: JPY 1 million) FY216 FY217 FY218 Revenue YoY (6.6)% +15.4% +13.8% Operating profit Operating margin +8.9% +8.3% +7.7% YoY ー +7.6% +5.6% Operating profit In FY217, income decreased in China despite higher sales volume for filings due to high raw materials prices. Lower sales volume for soy protein ingredients also resulted in decreased income but overall income increased thanks to higher profits in Southeast Asia due to food ingredients, which benefitted from market price factors. In FY218, we forecast China will record increased income thanks to sales growth for high valueadded soy products and stronger sales for filings, etc. In Southeast Asia, we forecast higher income thanks to increased sales of hard butters for chocolate despite decreased income from confectionary and bakery ingredients due to market price factors. 11

12 12(3).Americas (By area) (JPY 1M) Revenue FY16 FY17 FY18 (JPY 1M) 4 (Unit: JPY 1 million) FY216 FY217 FY218 Revenue YoY +32.8% +13.3% +7.3% Operating profit Operating margin +5.1% +7.3% +6.8% YoY ー +62.% +.% Operaitng profit FY16 FY17 FY18 In FY217, income increased thanks to sales growth for low trans fat palm oil in North America and improved profitability for chocolate in South America. In FY218, we worked to maintain profitability in North America but are forecasting lower income. In South America, income will increase on the recovery of sales volume for chocolate. Overall, we forecast income will be largely unchanged. 12(4).Europe (By area) (JPY 1M) 3 Revenue (JPY 1M) 12 Operaitng profit FY16 FY17 FY18 FY16 FY17 FY18 (Unit: JPY 1 million) FY216 FY217 FY218 Revenue YoY +.1% +15.% (4.1)% Operating profit Operating margin +4.1% +1.8% +4.2% YoY ー (49.8)% % In FY217, sales of hard butters for chocolate and oils and fats for filings were favorable but income decreased due to the impact of high raw materials prices. For FY218, we forecast increased income on improved profitability thanks to no longer being impacted by the high raw materials prices seen during the previous fiscal year. 12

13 13.Capital expenditures, depreciation expenses history (Unit:JPY 1 million) 25, 2, Capital expenditures (consolidated) Depreciation expenses (consolidated) 2, 15, 1, 11,156 9,397 9,239 8,799 8,432 8,58 8,319 8,232 15,347 13,611 14,698 9,26 9,593 9,995 11,36 5, 9,37 7,793 7,599 6,185 6,5 6, FY 217 Capital expenditures JPY 14.7 billion Major expenditures New production plant for Chinese Filling and Margarine JPY 1.3 billion Increase production capacity for Chinese filling etc. JPY.8 billion Increase production capacity for cream in Southeast Asia etc. JPY.8 billion Total depreciation expenses JPY 1 billion FY 218 Capital expenditures JPY 2 billion Major expenditures New production plant for Chinese Filling and Margarine JPY 3.7 billion new production plant for USA fats and oils JPY 3.2 billion Increase production capacity for Chinese water soluble soy polysaccharide JPY.9 billion Total depreciation expenses JPY Dividend history (Unit :JPY) 2nd half(left axis) (Unit :%) 6 1st half(left axis) Payout ratio(right axis) Unit:JPY FY8 FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 1st half nd half Payout 19.% 19.2% 21.1% 24.9% 25.8% 27.4% 27.6% 32.6% 31.2% 3.% 3.7% ratio Total FY8 FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY

14 15. Medium-Term Business Plan Progress Basic Strategy Basic policy 1Core competence enhancement 2Growth of soy business 3Functional high-value added products business development 4Cost reductions and alignment with global standards FY216 FY217 FY218 FY22 target ROE 8.3% 8.8% 8.8% ー 1.% Net sales margin ratio 4.1% 4.5% 4.3% ー Approx. 5.% Total return on asset 17.5% 113.1% 118.3% ー Approx. 115% financial leverage 1.8x 1.7x 1.7x ー Approx. 1.8x EPS EPS 14.8 yen yen 163. yen EPS growth rate 31.2% 13.5% 1.9% Operating profit 19,694 2,481 21,3 Operating profit growth rate 16.9% 4.% 4.% Payout ratio 31.2% 3.% 3.7% ー Operating cash flow year total billion billion billion 58.4 billion CCC 11 days 13 days 1 days ー Account receivable 74 days 76 days 73 days ー Wholsesale assets 65 days 57 days 56 days ー Trade payable 29 days 3 days 29 days ー Capital expenditure M&A 16. Topics April 217 May 217 July 217 August 217 September 217 November 217 december 217 February 218 March billion 14.7 billion 2. billion 2 year total Drafted the Fuji Oil Group Human Rights Policy Acquired UTZ Certification cacao program Listed to MSCI Japan Empowering Women Index (WIN) Listed to MSCI Japan ESG Select Leaders Index Provided support for July 217 Northern Kyushu Rain Damage Concluded Comprehensive Partnership Agreement with Osaka Prefectural Government Acquired Platinum Kurumin Mark Shokuiku Project awarded 11th Kid's Design Award Transferred Ishikawa Sunny Foods Co., Ltd. shares to Sagamiya Foods Co, Ltd. Received IR Special Award from the JIRA Agreed to establish UNITED PLANTATIONS BHD Received Osaka Stop Global Warming Award Special Prize Opened office in Dubai 2 year CAGR 7.6% 2 year CAGR 4.% Listed to Health and Productivity Management 5 for Major Corporations Category (White 5) Passed resolution to establish Fuji Oil New Orleans, LLC CAGR 8% Operating profit CAGR 6% Payout ratio 3-4% 4year cumulative CF 1billion 1 day contraction 4 year total of about 6-7billion yen assurances of 5 billion yen infunding 14