First Quarter of the Fiscal Year Ending December 31, 2015 Unicharm Presentation Materials for Investor Meeting May 8, 2015 Takahisa Takahara President and CEO Unicharm Corporation Projections stated herein include those based on the Company s assumptions, forecasts and plans as of May 8, 2015. 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.
Financial Performance Summary: First Quarter of the Fiscal Year Ending December 31, 2015 Copyright (c) 2012 Unicharm Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
1Q of the FY ending Dec 31, 2014 (Previous term) is an irregular settlement of accounts 11Q of the FY Ending Dec 31, 2014. (Afterward: Financial report basis ) 1Q of FY2014 Companies with FY Ending March : Apr-Jun 2014 Companies with FY Ending Dec : Jan-Jun 2014 Companies with fiscal year ending Three March months Companies with Three fiscal year ending months December 2Consolidated FY for comparison of pro forma amount. (Afterward: Adjusted basis Compared boxes in red) 2015 : Jan-Mar 2015 2014 : Jan-Mar 2014 2015 2014 Companies with fiscal year ending March Companies with fiscal year ending December 2015 2014 年 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Three months Six months Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec 6
Consolidated Year-on-Year Comparison (Financial report basis) (Millions of yen) 1Q of FY Ending Dec 31, 2015 1Q of FY Ending Dec 31, 2014 Difference Difference (%) Net sales 177,558 195,709 ーー Operating income Operating income margin 17,049 9.6% 18,517 9.5% ーー Ordinary income Ordinary income margin 13,993 7.9% 17,001 8.7% ーー Net income EPS (Yen) 5,778 9.62 9,080 15.03 ーー Difference is not indicated due to irregular closing account for the previous fiscal year. 4
Segment Information (Financial report basis) Business Segment Information (Financial report basis) (Millions of yen) Personal Care Pet Care Others Total Elimination/ Companywide Consolidated 1Q of FY Ending Dec 31, 2014 Net sales 174,881 19,496 1,331 195,709-195,709 Operating income 17,512 941 62 18,517 0 18,517 1Q of FY Ending Dec 31, 2015 Net sales 156,245 20,082 1,230 177,558-177,558 Operating income 16,810 205 33 17,049-17,049 Geographical Segment Information (Financial report basis) Japan Asia Others Total Elimination/ Companywide Consolidated 1Q of FY Ending Dec 31, 2014 Net sales 58,899 106,151 30,658 195,709-195,709 Operating income 6,206 11,661 728 18,597 79 18,517 1Q of FY Ending Dec 31, 2015 Net sales 64,215 86,679 26,663 177,558-177,558 Operating income 9,131 7,770 253 17,155 105 17,049 5
Overseas sales composition reached 64.1% driven by steady increasing sales composition in Asia ( 1Q of FY Ending Dec 31, 2014 including special factor) Changes in Japan and Overseas Net Sales (Financial report basis) (Billions of yen) 70.1% 200 150 100 39.6% 26.8% 43.4% 44.6% 53.9% 31.8% 34.4% 39.4% 60.2% 44.6% 54.2% 64.1% 48.8% 70% 60% 50% 40% 30% 50 20% 10% 0 0% '09/1Q '10/1Q '11/1Q '12/1Q '13/1Q '14 /1Q '15 /1Q Sales in Japan (left axis) Sales in Asia (left axis) Overseas sales excluding Asia (left axis) Sales composition in Asia (right axis) Overseas sales composition (right axis) 1Q of the FY Ending Dec 31, 2014 is an irregular settlement of accounts (Companies with FY ending March is three months and Companies with FY ending December is six months. 6
Strong sales of high added value products in Japan Executed aggressive marketing investments focused on Asia Actual operating income margin by geographical segment (Financial report basis) 25.0% Japan Asia Other Consolidated 20.0% 18.7% 16.7% 16.6% 17.0% 15.0% 10.0% 5.0% 12.5% 13.6% 11.8% 11.7% 12.5% 5.8% 5.2% 13.5% 13.2% 4.1% 12.8% 11.6% 6.2% 12.3% 10.8% 2.2% 2.4% 14.2% 11.0% 10.5% 9.6% 9.5% 9.0% 0.9% 0.0% '09 /1Q '10 /1Q '11 /1Q '12 /1Q '13 /1Q '14 /1Q '15 /1Q 7
Achieved increase in net sales and in operating income (Excluding retroaction of last-minute demand due to increasing consuption tax) Year-on-Year Comparison (Adjusted basis Jan-Mar 2014 vs Jan-Mar 2015) (Millions of yen) Jan-Mar 2015 Jan-Mar 2014 Difference Difference (%) Note Net sales 177,558 158,900 18,658 11.7% Operating income Operating income margin 17,049 9.6% 18,623 11.7% 1,574 8.5% External factor 1,750 Retroaction of last-minute demand due to increasing consuption tax Actual operation income 16,873 176 1.0% Adjusted basis is management accounting basis. 8
Growth in both net sales and operating income in Japan except for external factor Markets expansion by advance marketing investments in Asia Geographical Segment Information (Adjusted basis Jan-Mar 2014 vs Jan-Mar 2015) (Millions of yen) Japan Asia Others Total Elimination/ Companywide Consolidated Jan - Mar 2014 Net sales 65,757 70,333 22,810 158,900-158,900 Operating income 9,954 9,853 64 19,871 1,248 18,623 Jan - Mar 2015 Net sales 64,215 86,679 26,663 177,558-177,558 Operating income 9,131 7,770 253 17,155 105 17,049 Difference Net sales 1,542 16,346 3,853 18,658-18,658 Operating income 823 2,083 189 2,716 1,143 1,574 Difference (%) Net sales 2.3% 23.2% 16.9% 11.7% - 11.7% Operating income 8.3% 21.1% 295.3% 13.7% 91.6% 8.5% 18
Stable performance by high added-value products in Japan and improving profitability by cultivating new markets of pet care business in North America Business Segment Information (Adjusted basis Jan-Mar 2014 vs Jan-Mar 2015) (Millions of yen) Personal Care Pet Care Others Total Eliminaton/ Companywide Consolidated Jan - Mar 2014 Net sales 138,600 18,916 1,384 158,900-158,900 Operating income 18,715 176 84 18,623-18,623 Jan - Mar 2015 Net sales 156,245 20,082 1,230 177,558-177,558 Operating income 16,810 205 33 17,049-17,049 Difference Net sales 17,645 1,166 154 18,658-18,658 Operating income 1,905 381 51 1,574-1,574 Difference (%) Net sales 12.7% 6.2% 11.1% 11.7% - 11.7% Operating income 10.2% - 60.7% 8.5% - 8.5% 17
Impact on sales and operating income due to exchange fluctuation (Adjusted basis) Net sales increased approx. 10.9 billion year-on-year, while operating income increased approx. 0.04 billion Currency Exchange rate for FY2014 Exchange rate for FY2013 Change in rate Taiwan (TWD) 3.78 3.40 11.2% Thailand (THB) 3.65 3.15 15.9% South Korea (KRW) 0.1085 0.0963 12.7% Indonesia (IDR) 0.0094 0.0087 8.0% Malaysia (MYR) 32.96 31.19 5.7% Netherlands (EUR) 134.18 140.79 4.7% China (CNY) 19.08 16.90 12.9% Philippines (PHP) 2.71 2.31 17.3% Saudi Arabia (SAR) 31.78 27.45 15.8% India (INR) 1.93 1.68 14.9% USA (USD) 119.09 102.78 15.9% Russia (RUR) 1.90 2.94 35.4% Australia (AUD) 93.70 92.11 1.7% Vietnam (VND) 0.0056 0.0049 14.3% 19
Financial Results Forecasts for Fiscal Year Ending December 31, 2015 Copyright (c) 2012 Unicharm Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Both net sales and operating income have made steady progress in the 1Q of the FY ending Dec 31, 2015 Fiscal year ending Dec 31, 2015 (Published value) 1Q of FY Ending Dec 31, 2015 (Actual) (Millions of yen) Achievement Rate (%) Net sales 760,000 177,558 23.4% Operating income Operating income margin 86,000 11.3% 17,049 9.6% 19.8% Ordinary income Ordinary income margin 80,000 10.5% 13,993 7.9% 17.5% Net income Net income margin 44,000 5.8% 5,778 3.3% 13.1% 21
Shareholder Return Policy Copyright (c) 2012 Unicharm Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Steady and continual dividend payments Planned dividend for FY ending Dec 31, 2015 is 14.80 per share Change in dividends (Yen) 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2.3 2.7 3.0 3.3 3.7 2.07 increase in dividends 4.9 5.1 6.0 7.7 9.3 10.7 11.3 12.7 12.73 14.8 '02/3 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12 '15/12E Fiscal year ended Dec. 31, 2014 is an irregular fiscal year lasting nine months. 47
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