FY2015 Results Briefing Contents - Toyo Ink Group · 2018-11-30 · FY2015 Results Briefing FY2015 Summary of Performance (Packaging) Net sales Operating income Packaging FY2014 Full-year

FY2015 Results Briefing Copyright © 2016 TOYO INK SC HOLDINGS CO., LTD. All Rights Reserved.

FY2015 Results Briefing

Toyo Ink SC Holdings Co., Ltd. May 20, 2016

Contents ◆  Summary of Consolidated Business Performance ◆  Summary of Performance and Business Plan by Segment ◆  [Reference] Performance by Segment and by Region

The forecast or projections set out in this presentation are based on the assumptions and beliefs of our management in light of the information available to it as of May 20, 2016. Changes in global, economic and business conditions could cause actual results to differ materially from these forecasts. All amounts are rounded to the nearest 100 million yen.


FY2015 Consolidated Business Performance

FY2015

Net sales

Operating income

Net income

Recurring income

Increase/ decrease (%) FY2014 FY2016

forecast As at March

31, 2015 As at March

31, 2016 Increase/ decrease

(%)

FY2015 FY2016 (forecast)

Dividend (full-year, yen) 15.5 16.0

As at March 31, 2015

66.9 56.9

Interest-bearing debt (1 billion yen)

Net worth ratio (%)

67.3 57.7


0.37 D/E ratio 0.35

(Unit: 1 billion yen) (Unit: 1 billion yen)

Operating margin

ROE

Current assets

Fixed assets

Total assets

Current liabilities

Long-term liabilities

Total liabilities

Total net assets

Total of liabilities and net assets

187.7 176.5 364.3

90.7 59.8

150.5

184.1 176.5 360.6

85.7 60.2

145.9

214.7 360.6

-2.0

-0.0

-1.0

-3.1

0.4

-1.0

213.8 364.3

-5.6

0.7

283.2

18.5

18.7

12.2

286.7

18.2

19.4

13.3

-1.2 290.0

19.5

20.0

12.0

5.9%

6.5%

6.9%

6.4%

-1.0 (point) 5.9%

0.1 (points) 6.7%

67 12

Consolidated subsidiaries

Equity method companies

68 12



Overseas sales ratio 44.0% 43.0% 1.0

(point) 45.0%

1

*1) Foreign exchange loss in FY2015, in contrast to a foreign exchange gain in FY2014 *2) Approximately 6.8 billion yen was posted as extraordinary income for the same period the previous

year, based on gains from the sale of fixed assets

1.4

-3.7

-8.4

*1)

*2)


FY2015 Operating Income and Analysis of Factors Behind YoY Difference

Remarks

■ Increased profits due to fall in raw material prices(positive impact of 1.8 billion yen)　 Switched to alternative raw materials Revised raw material prices

■ Improved margin on sales (positive impact of 1.6 billion yen) Improved income from exports. Revised prices Disposed of non-profitable lines

■ Decrease in fixed costs (positive impact of 0.6 billion yen)

■ Decreased profits due to decline in sales volume (negative impact of 2.1 billion yen) Increased volumes for products such as pigments, can coatings, gravure inks and sheet-fed inks, but decreased volumes for newspaper inks, flexographic inks and coating materials

■ Decreased sales of high performance products (negative impact of 1.6 billion yen) Increased sales for products such as high reactivity UV inks and electromagnetic wave shield films, but continued poor performance from products such as optical hard coatings and CF resist inks

FY2015 18.5 billion yen

FY2014 18.2 billion yen

2

1 billion yen

FY2014 FY2015

Increased profits due to fall in raw m

aterial prices

Improved m

argin on sales

Decrease in fixed costs

Decreased profits due to decline in sales volum

e

Decreased sales of high perform

ance products

18.2

1.8 1.6

0.6 2.1

1.6

18.5 20.0

10.0

Copyright © 2016 TOYO INK SC HOLDINGS CO., LTD. All Rights Reserved.


(Unit: 1 billion yen)

Assumed indexes for plan

Capital Investment and Depreciation

3

Performance and Plan by Segment

Colorants and Functional Materials

Polymers and Coatings

Packaging

Printing and Information

Others, Adjustment

Consolidated

FY2014 Actual

Net sales Operating income

78.5 7.3 59.5 3.6 63.1 1.8 87.5 2.6 -1.9 2.8

286.7 18.2

FY2015 Actual


71.9 4.5 60.9 5.5 64.6 2.7 87.4 3.0 -1.6 2.8

283.2 18.5

FY2016 Full-year plan


72.5 4.8 63.5 6.3 67.5 3.4 88.5 4.0 -2.0 1.0

290.0 19.5

FY2015 Full-year plan (revised)


74.0 5.1 63.5 5.1 66.0 2.6 88.5 2.7 -2.0 2.5

290.0 18.0

Naphtha

Rosin

¥63,450/kℓ $2,350/t

FY2014 Average

¥42,800/kℓ $2,026/t

FY2015 Average

¥40,000/kℓ $2,000/t

FY2016 Basis for projections

Exchange rate

1USD = ¥110.6

1EUR = ¥138.4

FY2014 Average

1USD = ¥120.2

1EUR = ¥132.5

FY2015 Average

1USD = ¥115.0

1EUR = ¥125.0

FY2016 Basis for projections

Capital investment

Depreciation

12.8

10.0

FY2014 Actual

11.5

10.6

FY2015 Actual

13.1

10.4

FY2016 Plan

1RMB = ¥17.8 1RMB = ¥18.8 1RMB = ¥17.5




FY2015 Summary of Performance (Colorants and Functional Materials)

4

Growth Strategy: New Products and New Businesses

Create new products, new materials and new business models. Expand applications for display materials. Achieve projections for carbon materials. Commercialize easily dispersible pigment-applied products.

Net sales Operating income Colorants and Functional Materials

FY2014 Full-year actual 78.5 7.3 FY2015 Full-year plan 74.0 5.1

FY2015 Full-year actual 71.9 4.5 (Unit: 1 billion yen)

Chemicals

Display Materials

Colorants

Pigments performed sluggishly, reflecting a downturn in domestic demand for printing inks. CF pastes were affected by production adjustments, as a result of a change of models in the South Korean market.

Income fell sharply due to a decline in market share in Taiwan and delays with the introduction of new products. Material prices were also affected, due to lower operating rates amongst LCD panel manufacturers and a fall in panel prices.

Sales decreased and income increased as the containers market remained steady, while overseas OA equipment was sluggish.

General Conditions Major Product Category

Sales down, income down


Sales down, income up

Comparison from Preceding

Fiscal Year

Products in Development

Use of carbon dispersants steadily increased in the automotive sector.



FY2016 Business Plan (Colorants and Functional Materials)

FY2016 Key challenges

1. Restore profitability through structural reform in the display materials business

Increase share of high-grade resist market in Taiwan. Sell products to new customers in the Chinese resist market.

2. Improve profitability through structural changes to existing businesses. Refine and target pigment lines in production. Upgrade production processes for CF pastes, etc.

3. Create new businesses and new products. Sell resist inks for image sensors.   Develop LiB dispersants for the Chinese market.

Net sales Operating income Colorants and Functional Materials


Chemicals

Display Materials

Colorants

Major Product Category

 Improve margins by integrating product categories with production processes.  Start marketing CF pastes based on new manufacturing methods.

 Ensure quality and increase sales of new green resist and high-grade resist inks.  Step up marketing in order to increase market share in Taiwan and expand sales in China.

 Increase sales of high added-value functional master batches and compounds

Priority Measures

Sales Targets for Key Products

FY2016 Target

5


FY2015 Actual

LiB (Lithium-ion Batteries) carbon dispersants 0.4

Media materials 22.5

0.23

21.1 (Unit: 1 billion yen)



Coating Materials

Adhesives

Coatings and Resins

Functional films (TSS range): Continued to expand sales in South Korea, China, etc. Sign-related: Decline in properties due to stagnant market Tape-related: Decline in core areas such as those for polishing due to slowdown in HDD and LCD

Optical-related (ICT): Continued to expand sales in the display sector in South Korea, China, etc. Laminated adhesives: Continued to expand sales and increased volumes in Thailand, Vietnam, etc. Industrial material-related: Continued to expand sales in North America Hot melt adhesives: Maintained healthy domestic sales, despite a deterioration of profit due to rising raw material prices

Can coatings: Consistently achieved results for securing new sales Resins: Strengthened revenue base


Sales up, Income down

Sales up, income up

Sales up, income up


Fiscal Year

6

Net sales Operating income Polymers and Coatings


FY2015 Full-year actual 60.9 5.5

Develop new products and pursue global expansion. Expand sales of eco-friendly products. Expand sales of industrial adhesives in North America and Asia. Expand sales of converting-related products.



FY2015 Summary of Performance (Polymers and Coatings)



FY2016 Business Plan (Polymers and Coatings)

Net sales Operating income Polymers and Coatings


FY2016 Target

Coating Materials

Adhesives

Coatings and Resins


 Expand applications for functional films.  Develop new materials in line with structural reform in the device sector, and achieve projections.  Develop adhesive-based medical (healthcare-related) products.

 Expand into the ICT market.  Expand into overseas industrial adhesive markets.  Expand into overseas packaging adhesive markets, and increase sales in the energy sector.  Increase sales of hot melt adhesive products and develop new markets.

 Can coatings: Ensure quality of eco-friendly products and expand overseas sales.  Resins: Increase sales of high added-value products.

Priority Measures



7


1. Implement growth strategy. Expand ICT-related products (adhesives, coating materials, resins). Expand energy-related products (resins, etc.) Increase market share for industrial adhesives.

2. Expand into new markets and businesses. Expand results in the healthcare sector.   Increase percentage of overseas sales by strengthening global SCM. FY2015

Actual

Healthcare-related products

Electronic/optical products

2.0

4.0

1.2

3.4 (Unit: 1 billion yen)



FY2015 Summary of Performance (Packaging)

Net sales Operating income Packaging


FY2015 Full-year actual 64.6 2.7 (Unit: 1 billion yen)

Strengthen sales. Strengthen the sales of gravure inks in Asian regions (China and India).

Establish the quality of water-based flexographic inks and facilitate market penetration.

Improve responsiveness to global accounts. Improve the operation ratio of new overseas facilities by expanding

businesses (China and Brazil).


8

Liquid Inks (domestic)

Liquid Inks (overseas)

Growth in demand for packaging applications, and increased income from core gravure inks in the food packaging sector. Income was down due to falling naphtha prices impacting on solvent sales prices.

Improved results in China, Southeast Asia and India in particular, by increasing sales of eco-friendly gravure inks and flexographic inks, and expanding middle-grade products. Commenced operations at technical center in Thailand.


Sales down, income up

Sales up, income up


Fiscal Year



FY2016 Business Plan (Packaging)

Net sales Operating income Packaging


Liquid Inks (domestic)

Liquid Inks (overseas)


 Release new products across all sectors, including packaging, building materials and adhesive labels.  Cater more effectively to new customers for flexographic inks for films and silk screens.

 Develop peripheral markets surrounding TOYO INK Printing Inks (Turkey).  Strengthen sales of middle-grade product in Asia and China.

Priority Measures



9


1. Strengthen revenue base by shifting resources to priority businesses. Strengthen domestic sales of gravure inks. Expand flexographic inks. Expand screen inks.

2. Expand sales through targeted investment in overseas growth markets. Expand liquid ink sales in growth markets by establishing new locations in

line with the mid-term plan. Roll out new products such as high-performance water-based

flexographic inks.

3. Strengthen product development and manufacturing capabilities Develop products with an emphasis on marketing-led differentiation Establish global technologies and production systems

FY2016 Target

FY2015 Actual

Flexographic inks for films

Liquid inks (Southeast Asia/China)

Liquid inks (India)

1.5

18.5

1.8

1.3

17.2

1.0




FY2015 Summary of Performance (Printing and Information)

Net sales Operating income Printing and Information

Reinforce sales. Promote businesses in India and Brazil. Establish a new production base in Japan and expand production bases

overseas for UV inks. Expand the sales of hard coating agents for electronics. Strengthen marketing activities in Turkey and Central Asia.


FY2015 Full-year actual 87.4 3.0



Offset Inks, UV Inks, Inkjet

(domestic)

Offset Inks, UV Inks

(overseas)

Continued to expand sales of UV inks. Sales remained sluggish due to reduced demand for offset rotary printing, sheet-fed inks and newspaper inks.

Overseas sales of UV inks also remained strong. Increased sales of sheet-fed inks and inks for metal, both of which contributed to increased income. Commenced operations at technical center in China.



Sales up, income up


Fiscal Year

10



FY2016 Business Plan (Printing and Information)

Net sales Operating income Printing and Information


Offset Inks, UV Inks, Inkjet

(domestic)

Offset Inks, UV Inks

(overseas)


 UV inks: Increase income by setting up new Fuji plant and running at full capacity as soon as possible.  Reform revenue structure for established businesses.  Promote new development in the inkjet sector.

 Develop peripheral markets surrounding TOYO INK Printing Inks (Turkey).  Improve revenue at companies in both India and Brazil by expanding sales.

Priority Measures




1. Strengthen revenue base by shifting resources to priority businesses. Expand UV ink business Expand inkjet ink business Increase sales of inks for metal

2. Expand sales through targeted investment in overseas growth markets. Strengthen sales in India and Turkey Step up marketing to other South American countries around Brazil

3. Strengthen product development and manufacturing capabilities Develop products with an emphasis on marketing-led differentiation Establish global technologies and production systems

FY2016 Target

11

FY2015 Actual

UV inks

Inkjet inks

Offset inks (India)

23.0

3.0

3.0

22.0

2.1

2.6



(Reference) Performance by Segment

(Note) The segment performance for Japan and overseas does not take into account eliminations between regions.

Others

Adjustment

Total consolidated

Japan

Overseas

Total

Japan

Overseas

Total

Japan

Overseas

Total

Japan

Overseas

Total

Results for 4th Quarter of FY2015

(1 billion yen)

Net sales Operating income Net sales Operating

income Net sales Operating income

Total results (1 billion yen)


income

Increase/decrease Year on Year (%)

Increase/decrease from the 3rd quarter

of FY2015 (%)


Colorants and

Functional Material

Polymers and

Coatings

Packaging

Printing and

Information

0.7 ▲15.9

▲5.8 ▲3.5

▲4.6 ▲9.5

▲6.3 ▲14.6

▲0.7 20.2

▲3.1 ▲4.0

▲6.9 ▲11.2

0.7 69.6

▲4.0 12.6

▲6.2 ▲44.0

2.9 ▲22.7

▲3.0 ▲35.3

▲4.0 ▲26.5

- -

▲3.7 ▲13.8

▲6.4 ▲35.9

▲20.7 ▲40.6

▲16.5 ▲30.9

▲3.2 42.0

5.0 62.0

2.0 50.3

▲1.5 57.0

▲0.8 91.1

▲1.4 79.3

▲7.1 ▲18.4

▲0.3 188.5

▲4.2 43.6

5.4 ▲28.3

- -

▲5.9 10.7

10.1 0.7

10.2 0.3

17.1 1.0

10.7 0.8

5.8 0.7

15.2 1.5

9.7 0.5

6.4 0.4

16.0 0.8

13.2 0.3

10.2 0.5

21.9 0.8

1.5 0.5

▲1.9 0.0

69.8 4.6

▲8.6 ▲42.2

▲11.4 ▲36.3

▲8.4 ▲38.8

▲1.1 81.0

8.3 23.4

2.4 52.1

▲1.0 56.4

8.3 47.4

2.4 54.0

▲4.7 ▲31.2

6.8 99.7

0.0 12.8

4.8 ▲2.8

- -

▲1.2 1.4

40.7 3.1

44.2 1.3

71.9 4.5

43.9 3.3

23.1 2.2

60.9 5.5

40.0 1.7

25.1 1.0

64.6 2.7

53.8 1.1

39.2 1.9

87.4 3.0

6.0 2.8

▲7.6 0.0

283.2 18.5


(Reference) Performance by Region

Asia-Oceania

Europe

The Americas

Adjustment

Total consolidated

Japan


1st Quarter

Net sales

3rd Quarter 4th Quarter Total 2nd Quarter Operating

income Net sales Operating income Net sales Operating

income Net sales Operating income

FY 2014 (1 billion yen)

Asia-Oceania

Europe

The Americas

Adjustment

Total consolidated

Japan


Results for 4th Quarter FY 2015

(3 months) (1 billion yen)

Increase/decrease from the 3rd

quarter of FY2015 (%)

Net sales


Operating income Net sales Operating

income

FY2015 Actual

Total results for FY2015

(1 billion yen)


income


44.8 2.7

25.0 1.9

3.6 ▲0.0

3.6 0.1

▲7.1 ▲0.0

69.8 4.6

▲4.8 ▲21.3

▲1.0 1.0

2.3 -

▲4.3 -

- -

▲3.7 ▲13.8

▲4.3 ▲8.8

▲10.2 50.1

4.0 -

4.8 -

- -

▲5.9 10.7

181.9 11.9

100.7 6.3

14.5 0.4

14.2 ▲0.1

▲28.1 0.1

283.2 18.5

▲3.8 ▲6.0

▲1.4 10.0

2.0 137.4

14.6 -

- -

▲1.2 1.4

46.0 3.0

23.4 1.5

3.0 -0.1

2.8 -0.1

-7.1 0.1

68.2 4.3

48.4 3.5

26.2 1.5

4.2 0

3.3 -0

-9.1 0

73.0 5.0

46.8 3.0

27.8 1.2

3.4 0.1

3.4 -0

-7.3 -0.1

74.1 4.2

189.0 12.6

102.2 5.7

14.2 0.2

12.4 -0.4

-31.1 0

286.7 18.2

47.9 3.2

24.7 1.6

3.5 0.2

2.9 -0.2

-7.6 0

71.3 4.7

Documents

FY2015 Results Briefing Contents - Toyo Ink Group · 2018-11-30 · FY2015 Results Briefing FY2015 Summary of Performance (Packaging) Net sales Operating income Packaging FY2014 Full-year