Consolidated Business Results For the Fiscal Year Ending March 31, 2011 Bando Chemical Industries, Ltd.
Financial Summary Fiscal Year Ending March 31, 2011
(1)Settlement of Accounts There was an overall recovery during the fiscal year, due to factors such as government economic stimulus measures in various countries, economic growth in emerging economies, and domestic stimulus measures such as eco-car purchase subsidies. While many of the economic stimulus measures in Japan came to an end in the third quarter, and the yen exchange rate remained high, we were able to maintain our sales and profit growth. There was considerable growth in Asia, centered on Korea, Thailand and China. We achieved a significant increase in profit but, due to the impact of high raw materials and other factors, we fell short of our publicly announced (11/5/10) forecast. To ensure liquidity, we took out short-term loans in consideration of the effects of the Great Eastern Japan Earthquake. (Net debt decreased by 4.4 billion during the fiscal year.) 2
(2)Impact of the Great Eastern Japan Earthquake Property damage Ashikaga Plant (Production base for MMP Division) Partial damage to buildings and facilities Production status Production resumed in stages from March 23 with full operational recovery by the end of April, 2011 Amount of loss We incurred an extraordinary loss of 55 million in fiscal 2010 (and forecast an extraordinary loss of 75 million in fiscal 2011). Impact on business results Decreases in net sales of 560 million and operating profit of 200 million. 3
(3)Summary of Results Year on year Yen millions FY 2009 FY 2010 Change Rate of change Net sales 73,593 84,811 +11,218 15.2% Operating income 2,450 5,056 +2,606 106.4% Ordinary income 2,540 4,967 +2,426 95.5% Net profit 1,234 3,333 +2,098 170.0% Overseas sales 24,657 34,676 +10,018 +40.6% (Rate of sales overseas) (33.5%) (40.9%) (+7.4pts) - Asia(Thailand, China, other) Other (America, Europe, other) Exchange rates (Term average) US$= 93.73 US$= 87.32 18,100 27,443 +9,343 +51.6% 6,556 7,232 +675 +10.3% 4
(4)Exchange Rate Fluctuations 1.2 FY 2009 FY 2010 KRW 1.1 THB 1.0 CNY 0.9 EUR 0.8 USD 12/2008 2/2009 4/2009 6/2009 8/2009 10/2009 12/2009 2/2010 4/2010 6/2010 8/2010 10/2010 12/2010 2/2011 The yen transitioned lower against the Thai baht and Korean won, but higher against the dollar, euro and Chinese yuan. 5
(5)Net Sales by business segment FY 2009 FY 2010 Change Year on year Yen millions Rate of change Net sales 73,593 84,811 +11,218 15.2% Sales by business segment Power transmission 40,084 52,483 +12,399 30.9% Multimedia parts 8,934 10,636 +1,702 19.1% Industrial products 18,762 15,747-3,014-16.1% Plastics products 4,075 4,837 +762 18.7% Other 2,653 2,113-539 -20.3% Before eliminations 6
(6)Change in Net Sales 90,000 +1,702 80,000 +12,399 70,000 73,593 60,000-3,014 +762-539 -92 Yen millions 84,811 Adjustment FY 2010 7 Other Plastics products FY 2009 Power transmission Multimedia parts Industrial products
(7)Quarterly Progression of Net Sales and Operating Income 30,000 25,000 20,000 15,000 10,000 23,296 24,398 21,748 18,010 18,686 16,036 1,097 1,093 944 738 19,130 19,740 20,580 826 673 1,385 22,124 21,033 21,072 1,650 Yen millions Consolidated net sales (left scale) Consolidated operating income (right scale) 1,184 835 3,000 2,500 2,000 1,500 1,000 5,000 500 0 0-5,000 665 143-500 -10,000 08/1Q 08/2Q 08/3Q 08/4Q 09/1Q 09/2Q 09/3Q 09/4Q 10/1Q 10/2Q 10/3Q 10/4Q -1,000 8
(8)Non-Operating Income (Expenses) and Extraordinary Income (Loss) FY 2009 FY 2010 Year on year Change Operating income 2,450 5,056 +2,606 Non-operating income 882 864-18 Non-operating expenses (792) (954) +162 Ordinary income 2,540 4,967 +2,426 Extraordinary income 299 267-31 Extraordinary loss (751) (324) -427 Income taxes and minority interests Yen Millions (853) (1,576) +723 Net profit 1,234 3,333 +2,098 9
(9)Balance Sheet Fluctuations Yen millions Major fluctuations Cash + 6.3bil. Inventories + 1.6bil. Accounts receivable - 300mil. 34,878 Current assets 42,409 Other liabilities 24,708 Bank loans 17,653 22,255 15,744 Major fluctuations Accts. payable + 1.3bil. Accrued taxes + 500mil. Bank loans + 1.9bil. Tangible fixed assets - 1.9bil Intangible assets - 200mil. Investment securities 43,142 Fixed assets 40,495 Net assets 40,542 40,020 Shareholders equity + 1.7bil. Valuation and translation adjustments - 1.2bil. - 700mil. FY 2010 FY 2010 FY 2009 FY 2009 10
(10)Transition of Cash Flow 15,000 10,000 5,000 0-5,000-10,000 +9,641 +3,353-6,288 +7,805 +7,621-2,025-9,830 +2,684-4,937 +8,724 +5,577-3,147 Yen millions Operating activities Investing activities Free cash flow +9,529 3/2007 3/2008 3/2009 3/2010 3/2011 +4,606-4,922-15,000 11
(11) Financial indicators 3/2007 3/2008 3/2009 3/2010 3/2011 ROE 10.0% 12.3% -0.6% 3.2% 8.5% ROA 4.1% 5.8% -0.3% 1.6% 4.0% Capital to asset ratio Debt to equity ratio Net interestbearing debt 43.2% 48.5% 48.7% 50.2% 47.9% 44.9% 42.1% 47.3% 40.2% 44.5% 10.9bil 14.3bil 12.2bil 7.1bil 2.7bil ROE ROA are based on net profit. 12
(2)Transition of Capital Investment and Depreciation 8,000 7,000 7,166 Capital Investment Depreciation Yen millions 6,000 5,684 6,073 5,411 5,000 4,907 4,000 4,176 3,597 3,000 2,791 2,000 1,000 0 3/2008 3/2009 3/2010 3/2011 Emphasis on capital investment overseas 13
(3) Shareholder Return (Dividends) 14 12 Special dividend Year end dividend Mid-term dividend 10 \5 8 \6 \5 6 \4 \2 \4 4 \4 \3 2 \3 \4 \4 \5 \5 \3 \4 0 3/2005 3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 14
(4)Treasury Stock, Dividends, Net Profit 6,000 5,000 +5,289 Yen millions Purchase of treasury stock Total dividends 4,000 3,000 +4,086 +3,713 +3,985 Consolidated net profit +3,333 2,000 1,321 1,000 0 1,213 728 1,326 160 452 +1,234 764 1,012 1,003 702 602 787-255 -1,000 3/2005 3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 Shares retired 2,800,000 2,600,000 - - 1,000,000-700,00 15