Download FYE March 2017 Financial Highlights

FYE March 2017
Financial Highlights
NAGASE & CO., LTD.
May 2, 2017
Copyright © 2017 NAGASE & CO., LTD.
Agenda
Consolidated Statements of Income
2
N t Sales
Net
S l b
by R
Region
i (D
(Domestic,
ti O
Overseas))
3
Net Sales: Two-Year Comparison (by Segment)
4
Operating Income: Two-Year Comparison (by Segment)
5
Consolidated Balance Sheets
6
Consolidated Cash Flows
7
FYE March 2018 Earnings Projections
8
Dividends
9
Copyright © 2017 NAGASE & CO., LTD.
Consolidated Statements of Income
■Net sales: Lower, mainly due to the impact of the strong yen and a decrease in naphtha prices
■Operating income: Lower, mainly due to ¥3.1 billion in expenses related to retirement benefit accounting actuarial losses (¥4.0 billion negative impact in prior year)
(100 millions of yen)
16/03
17/03
Change
Published Forecast
Vs. PY
Achievement
7,421
7,223
△
△198
97%
7,350
98%
Gross profit
916
915
△1
100%
923
99%
<GP ratio>
12.4
12.7
+0.3%
－
12.6%
－
SG&A expenses
736
764
+28
104%
778
－
Operating income
180
150
△29
83%
145
104%
Ordinary income
183
163
△20
89%
160
102%
Profit attributable to owners of the parent
123
103
△19
84%
95
109%
@120.1
@108.3
@108
－
Net sales
US$ Exchange rate
(period average)
@11.7 revaluation
(Foreign exchange rate impact on17/03 net sales and operating income results)
Net sales ：- ¥46.8 billion (approx.)
Operating income ：- ¥1.7 billion (approx.)
Copyright © 2017 NAGASE & CO., LTD.
2
Net Sales by Region (Domestic, Overseas)
■Higher sales in Japan; lower sales overseas due to the impact of the strong yen
Domestic & Overseas Sales (100 millions of yen, %)
Domestic
(Left axis)
8,000 Overseas
(Left axis)
Overseas Sales by Region (100 millions of yen, %)
Oversales Net sales
（Right axis）
Greater China
51.1%
48.9%
7,000 50%
4,000 3,791
3,500 161
161 139
320
6,000 40%
3,791
3 791
3,000 Americas
Europe
Other
3,530
156 119
295
(V:97%)
(V:86%)
(V:92%)
3,530
5,000 2,500 1,098
1,019
30%
,
4,000 (V:93%)
2 000
2,000 3,000 2 000
2,000 ASEAN
20%
3,630
3,693
10%
1,500 1,000 2,071
1,000 1,937
(V:94%)
500 0 0%
16/03
17/03
0 16/03
Copyright © 2017 NAGASE & CO., LTD.
17/03
V:Vs 16/03
3
Net Sales: Two-Year Comparison (by Segment)
■ Functional Materials: Lower segment sales, mainly due to a decrease in naphtha prices driving sales of coating raw materials and urethane Functional Materials: Lower segment sales, mainly due to a decrease in naphtha prices driving sales of coating raw materials and urethane
materials lower. At the same time, sales of plastic additives and silicone materials were strong in the Americas.
■ Advanced Materials & Processing: Lower segment sales. Despite higher performance in conductive materials, sales of plastic materials in Greater China were lower, as were sales of plastic resins for packaging applications and digital print processing materials in Japan and overseas.
■ Automotive & Energy: Lower segment sales. Despite strong performance in the plastics business in Japan, lower naphtha prices drove sales down overseas.
Net Sales by Segment (100 millions of yen)
Functional Materials
Advanced Materials & Processing
Electronics
Automotive & Energy
7 421
7,421
7,000 855
6 000
6,000 1 153
1,153
5,000 Life & Healthcare
Other
7,223
849
1,129
1,279
1,277
4,000 3,000 2,555
2,426
1,571
1,535
,
16/03
17/03
2,000 1,000 0 Copyright © 2017 NAGASE & CO., LTD.
4
Operating income: Two-Year Comparison (by Segment)
■Although profits in the Life & Healthcare segment were down due to lower sales of cosmetics and health foods, other segments reported higher profits, mainly due to profitability improvements
i l d
fi bili i
and cost reduction measures
d
d i
at manufacturing subsidiaries.
f
i
b idi i
■Other/Corporate: Recorded ¥3.1 billion in expenses related to retirement benefit accounting actuarial losses (¥4.0 billion negative impact in prior year).
*Posted retirement benefit actuarial loss of ¥3.1 billion at end of prior period, after revising the discount rate to reflect low market interest rates (fully amortized this year)
Net Sales by Segment (100 millions of yen)
Functional Materials
Advanced Materials & Processing
Automotive & Energy
Life & Healthcare
180
190 38
13
Electronics
Other/Corporate
150
33
15
140 62
63
90 49
50
40 36
(10)
41
- 20
- 54
(60)
16/03
Copyright © 2017 NAGASE & CO., LTD.
17 /03
5
Consolidated Balance Sheets
■Current assets increased, mainly due to increases in notes and accounts receivable
■Non‐current assets increased mainly due to increases in investments in securities (price increases for retained shares offset sales of some
■Non‐current assets increased, mainly due to increases in investments in securities (price increases for retained shares offset sales of some securities)
■ Shareholders’ Equity Ratio up 1.2 point to 54.7％
Assets
Liabilities and Net Assets
16/03
Total current assets
Cash and time deposits
Notes and accounts receivable
17/03
3,123
3,212
432
398
1,963
2,068
+88 Total current liabilities
‐ 34
+105
+103
1,020
+42
Short-term loans
341
316
‐24
(Including current portion of long-term
long term loans)
+100
+85
+98 Total long-term liabilities
768
690
‐77
676
+11
Long term loans
Long-term
231
200
‐30
30
445
407
‐37
Bonds
300
200
‐100
887
1,011
+124
Net defined benefit liability
140
146
+5
+132
Other
(Deferred tax liabilities
liabilities, etc
etc.))
96
143
+47
2,329
2,355
+26
2,791
2,951
+160
1,997
2,095
Property plant and equipment
Property,
664
Intangible fixed assets
Investments, other assets
Other
1,664
978
100
+16
Investments in securities
1,561
Notes and accounts payable
327
+2
114
Total non-current assets
813
945
74
66
Current portion of bonds
Other
‐ 7 Total liabilities
Total net assets
2,346
2,396
+50
Accumulated other comprehensive income
393
505
+112
Net unrealized holding gain on securities
370
476
+106
44
31
‐12
‐ 21
‐2
+19
51
49
‐2
5,120
5,307
+186
Shareholders’equity
Translation adjustment
Other
Non-controlling interests
Total assets
Change
－
631
97 Other
17/03
241
629 Inventories
(100 millions of yen)
16/03
Change
5,120
5,307
+186 Total liabilities and net assets
Copyright © 2017 NAGASE & CO., LTD.
6
Consolidated Cash Flows
■Cash and cash equivalents lower by ¥3.1 billion. Despite an increase of ¥14.5 billion in cash flows from operating activities (¥16.1 billion in
profit before income taxes), the company made ¥6.5 billion in cash outlays for investing activities (¥11.5 billion in purchases of property, plant
and equipment) and ¥10.5 billion in cash outlays for financing activities (¥4.9 billion in net cash outlays for short-term loans, ¥4.0 billion in
dividend payments). *By region, cash decreased ¥4.4 billion in connection with increased working capital in Greater China.
Cash Flows
(100 millions of yen)
17/03
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Eff
Effects
off exchange
h
rate changes
h
on cash
h and
d
cash equivalents
Net increase (decrease) in cash and cash equivalents
Main breakdown
Profit before income taxes ＋161
Depreciation and amortization/amortization of
goodwill ＋109
g
+145
Increase in adjustments for retirement benefits＋32
Working capital - 77
Income tax paid - 77
Purchases of property, plant and equipment ‐106
Purchases of intangible fixed assets included in other
assets ‐8
-65
Purchases of investment in securities -18
Proceeds from sales of investments in securities
＋46
Sh t llong-term
Short,
t
loans
l
(net
( t payments/proceeds)
t /
d ) -49
-105 Cash dividends paid ‐ 40
Purchase of treasury stock -11
16/03
+293
+293 ‐ 126
‐ 128
-5
‐ 15
- 31
+23
Cash and cash equivalents at beginning of the year
429
Japan 239 , Greater China 115 , ASEAN42 , Europe
18 , Americas 4 , Other 9
405
Cash and cash equivalents, at end of the period
397
Japan 254 , Greater China 70 , ASEAN 35 , Europe
18 , Americas 5 , Other 13
429
Copyright © 2017 NAGASE & CO., LTD.
7
FYE March 2018 Earnings Projections
■Net sales: Higher net sales. Despite our projection of lower sales of liquid crystal‐related products
■Net
sales: Higher net sales Despite our projection of lower sales of liquid crystal related products in our Electronics segment, other in our Electronics segment other
segments are expected to report higher sales, including stronger performance of plastics in our Advanced Materials & Processing segment.
■Operating income: Higher profits due to increased revenues. Further, amortization of retirement benefit actuarial losses are expected to be ¥0 3 billion (representing a ¥2 8 billion positive impact on earnings compared to the prior fiscal year)
to be ¥0.3 billion (representing a ¥2.8 billion positive impact on earnings compared to the prior fiscal year).
(100 millions
illi
off yen))
17/03Actual
18/03Forecast
Change
Vs. PY
7,223
7,320
＋96
101%
Operating income
150
191
＋40
127%
Ordinary income
163
209
＋45
128%
P fit attributable
Profit
tt ib t bl to
t
owners of the parent
103
125
＋21
121%
@108 3
@108.3
@108
@¥0.3
revaluation
―
Net sales
US$ Exchange rate
(period average)
Copyright © 2017 NAGASE & CO., LTD.
8
Dividends
■Current period: Annual ¥33 per share dividend (¥1 increase YoY) representing a ¥16 interim and ¥17 year end dividend
■Current period: Annual ¥33 per share dividend (¥1 increase YoY), representing a ¥16 interim and ¥17 year‐end dividend
■Next period: Annual ¥35 per share dividend (¥2 increase YoY), representing a ¥17 interim and ¥18 year‐end dividend
（％）
（％、yen）
y
45
1.6
40
1.4
35
12
1.2
30
1.0
25
0.8
20
0.6
15
10
0.4
5
0.2
0
一株当たり配当金
Dividend per Share (left axis)
(左メモリ)
配当性向
Payout Ratio
（左メモリ）
左
(left axis)
DOE(右メモリ)
DOE (right axis)
08/03
09/03
10/03
0/03
11/03
/03
12/03
/03
13/03
3/03
14/03
/03
15/03
5/03
16/03
6/03
17/03
(Forecast)
（予定）
18/03
(Forecast)
（予定）
17
16
16
22
24
26
28
30
32
33
35
21 8
21.8
35 4
35.4
27 3
27.3
22 1
22.1
36 0
36.0
23 4
23.4
30 5
30.5
33 7
33.7
33 0
33.0
40 4
40.4
35 3
35.3
1.08
1.07
1.08
1.42
1.52
1.52
1.50
1.44
1.46
1.48
1.50
0.0
*17/03 year-end dividend to be submitted for approval to general meeting of shareholders scheduled for June 2017
Copyright © 2017 NAGASE & CO., LTD.
9
http://www.nagase.co.jp/english/
These presentation materials contain forward-looking projections based on assumptions,
forecasts, and plans as of May 2 , 2017. Actual earnings may differ from projections due to
risks and uncertainties in the future global economy
economy, competitive landscape
landscape, currency
exchange rates, etc.
Copyright © 2017 NAGASE & CO., LTD.