FY2014 Financial ResultsFY2014 Financial Results and ... · expansion of product range with in-mould integral moulding technology for plastic and ... [Dividend: JPY/share] 20 Interim

FY2014 Financial ResultsFY2014 Financial Resultsandand

Business Plan

May 2015Shigeru HayashiShigeru Hayashi

President

Copyright (C) 2015 Sumitomo Bakelite Co., Ltd.

Financial Results of FY2014 (ended March 2015)

Term FY 2013 FY 2014Item Actual (1) Actual (2) (2) - (1) Ratio

[Billion yen]Increase/Decrease

Item Actual (1) Actual (2) (2) (1) Ratio

％

Net sales 206 0 209 7 3 6 1 8Net sales 206.0 209.7 3.6 1.8

Operating income 10.7 10.9 0.2 1.9

Ordinary income 11.5 11.3 -0.2 -2.0

Net income 6.5 7.1 0.6 9.5Extraordinary profit and lossExtraordinary profit and loss

FY 2013: (-)1.0 billion yenloss on retirement of fixed assets (-)0.4 billion yen, impairment loss (-)0.2 billion yen

FY 2014: +0 1 billion yen


FY 2014: +0.1 billion yengain on retirement of fixed assets +1.4 billion yen, loss on retirement of fixed assets (-)0.5 billion yen, cost of business restructuring (-)0.3 billion yen

2

Financial Results of FY2014 (ended March 2015)[Billion yen]

Term FY 2013 FY 2014Item Actual (1) Actual (2) (2) - (1) Ratio

Increase/DecreaseItem Actual (1) Actual (2) (2) (1) Ratio

％Net sales 206.0 209.7 3.6 1.8 Impact of financial year-end-date change*1 16.5 -16.5 ******Adjusted net sales 189.6 209.7 20.1 10.6Operating income 10.7 10.9 0.2 1.9 Actuarial differences*2 1.5 0.4 -1.1 ****** Impact of financial year-end-date change*1 1.4 -1.4 ******Adjusted op. income 7.9 10.5 2.7 33.9Ordinary income 11.5 11.3 -0.2 -2.0

*2 1 0 4 1 1 ****** Actuarial differences*2 1.5 0.4 -1.1 ****** Impact of financial year-end-date change*1 1.5 -1.5 ******Adjested ord. income 8.6 10.9 2.3 27.2Net income 6 5 7 1 0 6 9 5Net income 6.5 7.1 0.6 9.5 Actuarial differences*2 0.9 0.3 -0.7 ****** Impact of financial year-end-date change*1 1.0 -1.0 ******Adjusted net income 4 6 6 9 2 3 49 8


Adjusted net income 4.6 6.9 2.3 49.8*1 Impact of financial year-end-date change: the effect of the financial year-end-date change at some of our consolidated subsidiaries*2 Actuarial differences: actuarial differences of retirement benefit accounting

3

Analysis of Operating Income (Y/Y)

10

11 10.5[Billion yen]

8

9

10

7.9 +0.1+1 0 Fixed costFixed cost

+0.3

6

7+1.0

S lS lFXFX

Selling &raw material

price gap

Selling &raw material

price gap

Fixed cost& others

Fixed cost& others

+1.3

4

5SalesSales

2

3

0

1


+2.7 billion yen FY2014FY2013*Exclusive of actuarial differences of retirement benefit accounting and the effect of the financial year-end-date change at some of our consolidated subsidiaries

4

Sales and Profit by Business Segment

78 794.5

100

FY2013 FY2014【Sales】 [Billion yen]

46.2 47.278.7

63.9 67.16080

100

02040

6 08

0Semiconductor Materials High Performance Plastics Quality of Life Products

【Operating income】

4.76.0

3.8 4.63.0 2 84 3.0 2.84


0Semiconductor Materials High Performance Plastics Quality of Life Products

*Exclusive of actuarial differences of retirement benefit accounting and the effect of the financial year-end-date change at some of our consolidated subsidiaries 5

Progress of Mid-term Business Plan (FY2014-FY2016)

268.0246 0

Mid-term Plan

[Billion yen]246.0

210.0260.0

230 0245.0Sales

209.7189.6178.9185.2

191.0

230.0Revised plan

16.722.0 22.0

18.014 0

Operating income

11.06.2 7.2 7.9

11.010.514.0

2010 2011 2012 2013 2014 2015 2016 2017（Plan）(Actual）

[Term](Plan） (Plan） (Plan）


( ( (

*Exclusive of actuarial differences of retirement benefit accounting and the effect of the financial year-end-date change at some of our consolidated subsidiaries

6

Toward 8% of ROE

Return on Equity (ROE) B i li “Maximisation of net income”Basic policy: “Maximisation of net income”

T tT t

[Billion yen]

7 0% 20

25

8%

10% Operating income ROETarget:Target:

More than 8%More than 8%

4 5%

5.3%7.0%

15

20

6%

8%

14.014.018.018.0

22.022.03.3%4.5%

104%

7.97.9 10.510.514.014.0

0

5

0%

2%

Copyright (C) 2015 Sumitomo Bakelite Co., Ltd. 7

2013(Actual)

2014(Actual)

2015(Plan)

2016(Plan)

2017(Plan)

Toward 8% of ROE (Business Portfolio)

19% 24%30%

41%Outer: Sales

Inner: Operating Income (O.I.)FY2017

Plan

40%

21%22%

31%

40%

46%

23%

40% 46%Semiconductor Materials

Quality of Life Products

FY2015Plan Sales 260 Billion yen

O I 22 Billion yen

45%

21%23%

32%39%

47%FY2014 Sales 230 Billion yen

O.I. 22 Billion yen

34%High Performance Plastics

209 7

FY2014Actual

yO.I. 14 Billion yen


45%Sales 209.7 Billion yenO.I. 10.5 Billion yen

8

Financial Outlook for FY2015 (ending March 2016)

Term FY 2014 FY 2015[Billion yen]

Increase/Decrease

Item Actual (1) Forecast (2) (2) - (1) Ratio (%)

Net Sales 209 7 230 0 20 3 9 7%Net Sales 209.7 230.0 20.3 9.7%Operating income 10.9 14.0 3.1 28.4% Actuarial differences 0.4 -0.4 *****Adjusted op. income 10.5 14.0 3.5 33.0%Ordinary income 11.3 14.3 3.0 27.0% Actuarial differences 0.4 -0.4 *****Adjusted ord. income 10.9 14.3 3.4 31.3%Net income 7 1 9 2 2 1 29 3%Net income 7.1 9.2 2.1 29.3% Actuarial differences 0.3 -0.3 *****Adjusted net income 6.9 9.2 2.3 34.1%


j* Actuarial differences: actuarial differences of retirement benefit accounting

9FY2014 ¥110/USD・¥139/EUR, FY2015 ¥120/USD・¥130/EUR FOREX:

Basic Policy of Mid-term Business Plan

”CS First””CS First”more cooperation & collaboration in house

«Basic strategies»

more cooperation & collaboration in house and with outside partners

* New growth of existing domestic businesses andchange of business model

«Basic strategies»

* Increase of scale and profitability of overseas business* New business start-up, Creation

* B i i th h M&A d ll b ti* Business expansion through M&A and collaboration

«Numerical targets for FY2017»* Operating income 22 billion yen* Return on equity (ROE) 8%

g


q y ( )

10

Semiconductor Materials: Priority Measures∫∫. New strategic products and entry into new business areas

† new applications for in-vehicle use etc. developed by our existing material technologiesge.g. one-step encapsulation material for ECU, materials for in-vehicle

sensors, power modules† promotion of commercialisation of newly developed cutting-edge

productsproductse.g. optical circuit products, materials for 3D laminated devices

∫. Maximisation of profit in the existing business areas through product differentiation and penetration into the volume zone† deeper relations with customers through closer contact and† deeper relations with customers through closer contact and

quicker response by the joint force of R&D, manufacturing,and sales at each global site

† more sales by differentiation products such as MUF* and granule-type encapsulation materials, etc.

®


† packaging material for semiconductor substrates “LαZ®”from AP’s to memories etc. in the volume zone *MUF: Mold underfill

**AP: Application processor 11

High Performance Plastics: Priority Measures∫. Strengthening & expansion of new business areas† full-fledged engagement in aircraft-related business

dit d li ti f ith V ll· expedited realisation of synergy with Vaupell† development and commercialisation of

strategic new products · for automotive use

expansion of product range with in-mould integral moulding technology for plastic andmetal compositesmetal composites

· for shale gas/oil exploration, new materialsfor TFT liquid crystal

∫ F h l li i f d i d i∫. Further localisation of production and consumption in growing markets† through re-organisation of the Nantong plant in China† through re organisation of the Nantong plant in China

· consolidation of phenolic moulding compound production (Jan. 2015)∙ start of the new production line for liquid resin for insulation (Sept. 2014)

† cooperation with outside partners OEM agreement under


† cooperation with outside partners, OEM agreement under consideration (China, ASEAN, etc.)

12

Quality of Life Products: Priority Measures (1)

Medical devices∫. Strategic new products, wider line-up of peripheral devices† Steerable micro catheter

Approved by Japan’s MHLW in Nov. 2014

Promotion of a group of products related to endoscopic treatment

A reimbursement price to be set by MHLWin early autumn 2015 SB KnifeSB Knife ® Jr.Jr.

(application: large intestines)(application: large intestines)®®

† Increase the line-up of peripheral devices relatedt d i t t t h SB K if ®

SB KnifeSB Knife®

(application: digestive tract, stomach)(application: digestive tract, stomach)

to endoscopic treatment such as SB Knife®, Orphis CV Kit®

∫ A l ti f b i∫. Acceleration of overseas business† Early realisation of synergy effect with Vaupell


† Increase function of China site (Dongguan)

13

Quality of Life Products: Priority Measures (2)Films & Sheets∫. Packaging material for pharmaceutical drugs: reinforce competitive

advantage to gain an overwhelmingly large shareadvantage to gain an overwhelmingly large share† capture the increasing demand for generics by offering a various

functions e.g. high anti-moisture, and a large line-up† widen the application to packaging for medical use† pp p g g

(e.g. transfusions)

∫. Packaging material for food and industrial use: aggressive moveinto growing areas

Packaging for pharmaceuticals

into growing areas† expand sales by leveraging cost competitiveness of the state-of-the-art plant in Nantong † increase the strategic ECO product line up and promote collaboration with customers

Thin multilayered film Freshness keeping film P-Plus

Copyright (C) 2015 Sumitomo Bakelite Co., Ltd.Thickness ECOCeeeL:180μm, Conventional: 220μm

For producers ofvegetables and fruitsFor pre-cut vegetable New product

Anti-condensation filmOverwhelmingly large share for pre-cut vegetables and Edamame! 14

Quality of Life products: Priority Measures (3)Interior and exterior materials∫. Further collaboration among 3 businesses

( l t D l t f)Owner/designer

(plates, Decola, waterproof)† Sharing of the customer base (owner/designer, building

contractor (general contractor), construction company) f d l t d l t d l f t l ti

Building contractor (general contractor)

for module-type development and proposal of system solutions= approach to each layer of the pyramid with owner/

designer at the top to increase customer orders

Construction company

Sumitomo Bakelite Co., Ltd.

∫. Aggressive move into overseas markets

Increase sales channels in the growing

∫. Expansion of non-buildingapplications

Increase sales channels in the growingASEAN market by leveraging oursubsidiary in Indonesia

Industrial & commercial

· Motorcycles, automobiles, rail cars

Transportation

Kanuma Plant, Plates Lab

SBP Indonesia


y , ,· Aircraft

SBP Indonesia

15

Policy on Dividend PaymentsWe consider shareholder returns as one of the important managementresponsibilities. We maintain stable dividend payments, while giving fullconsideration to such factors as strategic investments necessary forreinforcement of the existing businesses and for future growth, financialconditions, business performance, etc.[Dividend: JPY/share]

20Interim

Year-end

10 007.50 7.50 7.50 7.50

5 0010

15

200

[Net income: JPY 100 mill.]

10.00

5.00

5.00

5.00 5.00 5.00 5.00

5

10

152 119

65 7192

100

150

200Net income(line )

5.007.50 7.50 7.50

5.007.50 7.50

5.00 5.00 5.00 5.00

02005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

22 3352

25 34

65

0

50


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-79 -100

-50[FY]Plan

16

Documents

FY2014 Financial ResultsFY2014 Financial Results and ... · expansion of product range with in-mould integral moulding technology for plastic and ... [Dividend: JPY/share] 20 Interim