unicharm presentation materials for investor meeting...2014/11/07 · unicharm presentation...

Unicharm Presentation Materials for

Investor Meeting

August 8, 2014

Takahisa Takahara

President and CEO

Unicharm Corporation

Projections stated herein include those based on the Company’s assumptions, forecasts and plans

as of August 8, 2014. Therefore, actual results may differ significantly from projections due to risks

and uncertainties associated with market competition, foreign exchange rates, etc.

Financial Results Review :

Three Months Ended June 2014

Copyright (c) Unicharm Corporation. All rights reserved.

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Page番号を隠さないよう注意

枠内に収める枠内に収める

3

① The consolidated fiscal year ending in June 2014. (Afterward : “Financial report basis”) ◆Companies with fiscal year ending March: Apr-Jun 2014 ◆Companies with fiscal year ending December: Jan-June 2014

2013 2014

Jan-Mar Apr-Jun

1Q

Jul-Sep

2Q

Oct-Dec

3Q

Jan-Mar

4Q

Apr-Jun

1Q

Jul-Sep

2Q

Oct-Dec

3Q

Companies with

fiscal year ending

March

Companies with

fiscal year ending

December

2013 2014

Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec

Companies with

fiscal year ending

March

Companies with

fiscal year ending

December

Three

months

Three

months

Change fiscal year ended March 31 to ended December 31 to standardize the fiscal year for all consolidated subsidiaries

② The consolidated fiscal year for comparison pro forma amount. (Afterward : “Adjusted basis” Box in red)

◆2013 : Jan-Jun 2013 ◆2014 : Jan-Jun 2014

Three

months Six months


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4

【Consolidated】 Year-on-Year Comparison

(Financial report basis) (Millions of yen）

3 Months Ended

June 30, 2014

3 Months Ended

June 30, 2013 Difference※

Difference

(%)※

Net sales 195,709 143,761 ーー

Operating income Operating income margin

18,517

9.5%

17,652

12.3%

ー

ー

Ordinary income Ordinary income margin

17,001

8.7%

19,047

13.2%

ー

ー

Net income

EPS (Yen)

9,080

45.10

10,949

56.51

ー

ー

※ Difference is not indicated due to irregular closing account for this consolidated fiscal year.


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3) 1,800 Retroaction of last-minute demand due to increasing consumption tax

4) 900 Exchange rate (High cost of raw materials

due to currency depreciation of emerging currency)

3 Months Ended

June 30, 2014

3 Months Ended

June 30, 2013 Difference

Difference

(%)

Net sales 195,709 143,761 ーー


18,517

9.5%

17,652

12.3%

ー

ー

5

Actual operating income margin reached 11.3%

excluding specific factors.

Year-on-Year Comparison (Financial report basis)

(Million of yen)

Actual operating income 22,617

Actual operating income margin

Specific factor (Reduced operating income)

Relation of changing

fiscal year

1) 1,300 Non-depreciable of Royalty due to standardization the fiscal year

2) 100 Defrayment of labor cost due to standardization of the fiscal year

Other external

factor

(Million of yen)

11.3％


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6

Segment Information (Financial report basis)

Personal

CarePet Care Others Total

Elimination /

CompanywideConsolidated

3 Months Ended June 2013

Net sales 123,582 18,852 1,326 143,761 － 143,761Operating income 17,312 217 115 17,646 6 17,652


Net sales 174,881 19,496 1,331 195,709 － 195,709Operating income 17,512 941 62 18,517 0 18,517

Japan Asia Others TotalElimination /



Net sales 57,755 64,112 21,892 143,761 － 143,761Operating income 6,231 10,888 488 17,608 44 17,652


Net sales 58,899 106,151 30,658 195,709 － 195,709Operating income 6,206 11,661 728 18,597 ▲79 18,517

(Million of yen) Business Segment Information (Financial report basis)

Geographical Segment Information (Financial report basis)

Copyright (c) 2012 Unicharm Corporation. All rights reserved.

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Copyright (c) Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.

26.8%31.8%

34.4%39.6% 39.6%

43.4% 44.6%

53.9%

60.2%

54.2%

44.6%

39.4%

23.3%

70.1%

0

50

100

150

200

'08/6 '09/6 '10/6 '11/6 '12/6 '13/6 '14 /6

0%

10%

20%

30%

40%

50%

60%

70%

Sales in Japan (left axis) Sales in Asia (left axis)

Overseas sales excluding Asia (left axis) Sales composition ratio in Asia (righ axis)

Overseas sales composition ratio (right axis)7

Overseas sales composition reached 70.1%

driven by steady increasing sales composition in Asia (63.1% on previous accounting period)

Changes in Domestic and Overseas Net Sales (Financial report basis)

(Billion of yen)


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12.3%

8.5%

13.2%

11.7%11.6%

8.6%

9.0% 12.5%10.8%

12.4%

14.7%12.5%

18.7%

16.7% 16.6%

9.1%

5.1%

17.0%

12.8%

4.1%5.2%5.8%

2.4%2.4%2.5%

6.2%

2.2%3.7%

11.8%

7.5%

7.9%

9.0%

13.6%

13.5%

12.8%

11.3%

0.0%

5.0%

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15.0%

20.0%

25.0%

'06/6 '07/6 '08/6 '09 /6 '10 /6 '11 /6 '12 /6 '13 /6 '14 /6

Japan Asia Others Consolidated

8

Executed aggressive marketing investments focused in Asia

Actual consolidated operating income margin reached 11.3%

excluding some specific factors of changing fiscal year, etc.

Actual operating income margin by geographical segment (After considering specific factor)


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9

(Million of yen)

’14/6 (Adjusted basis)

’13/6 (Adjusted basis)

Difference Difference

(%) Note

Net sales 308,624 277,128 31,496 11.4％

Operating income

Operating income

margin

33,137

10.7%

30,014

10.8%

3,123

10.4％

Both net sales and operating income reached

double-digit growth

※ Financial results after adjustment are management accounting basis.

Year-on-Year Comparison

(Adjusted basis※ ’14/1 - ’14/6 vs ’13/1 - ’13/6)


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10

Pet Care Business in Japan improved performance

due to market revitalization and efficient promotional activities

Business Segment Information (Adjusted basis ’14/1-6 vs ’13/1-’13/6)

Personal

CarePet Care Others Total

Elimination /

Company wideConsolidated


Net sales 238,689 35,864 2,575 277,128 － 277,128

Operating income 30,225 ▲435 224 31,973 ▲ 1,959 30,014


Net sales 267,580 38,329 2,715 308,624 － 308,624

Operating income 31,985 1,017 134 34,843 ▲ 1,706 33,137

Difference

Net sales 28,891 2,465 140 31,497 － 31,497

Operating income 1,760 1,453 ▲90 2,870 253 3,123

Difference (%)

Net sales 12.1% 6.9% 5.4% 11.4% － 11.4%

Operating income 5.8% － ▲40.1% 9.0% － 10.4%

(Million of yen)


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Copyright (c) Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved. 11

Personal Care Business in Japan improved operating income

due to consecutive proposal of high value-added products

Geographical Segment Information (Adjusted basis ’14/1-’14/6 vs ’13/1-’13/6)

Japan Asia Others TotalElimination /



Net sales 112,665 121,077 43,385 277,128 － 277,128

Operating income 12,232 18,159 1,581 31,972 ▲1,959 30,014


Net sales 123,051 139,115 46,459 308,624 － 308,624

Operating income 15,867 17,608 1,368 34,843 ▲1,706 33,137

Difference

Net sales 10,385 18,038 3,074 31,496 － 31,496

Operating income 3,635 ▲551 ▲213 2,870 254 3,123

Difference (%)

Net sales 9.2% 14.9% 7.1% 11.4% － 11.4%

Operating income 29.7% ▲3.0% ▲13.5% 9.0% － 10.4%

(Million of yen)


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12

Impact on sales and operating income due to exchange rate (Financial report basis)

Net sales increased approx. ¥5.9 billion year on year,

while operating income decreased approx. ▲0.5 billion

Currency Previous year

exchange rate

Current year

exchange rate Change in rate

Taiwan (TWD) 3.31 3.40 2.7%

Thailand (THB) 3.31 3.15 ▲4.8%

South Korea (KRW) 0.0853 0.0979 14.8%

Indonesia (IDR) 0.0101 0.0088 ▲12.9%

Malaysia (MYR) 32.18 31.58 ▲1.9%

Netherland (EUR) 122.04 140.43 15.1%

China (CNY) 14.88 16.65 11.9%

Philippines (PHP) 2.29 2.33 1.7%

Saudi Arabia (SAR) 26.37 27.28 3.5%

India (INR) 1.79 1.72 ▲3.9%

USA (USD) 98.76 102.16 3.4%

Russia (RUR) 3.04 2.93 ▲3.6%

Australia (AUD) 95.97 93.71 ▲2.4%

Vietnam (VND) 0.0044 0.0048 9.1%


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18.00

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1,600

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2,000

2,100

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1.00

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BC: Trend for Average (retail) Price per

Unit of Disposable Diaper

13

China Thailand

Indonesia Japan

(*) Prices in Japan include those of toilet-training pants. Source: UC survey

(Baht) (RMB)

(Rupiah) (Yen)


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7.00

7.50

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8.50

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10.50

11.00

300

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14

FC: Trend for Average (retail) Price

per Unit Sanitary Product

China Thailand

Indonesia Japan

(*) Including napkins, liners and tampons. Source: UC survey

(RMB) (Baht)

(Rupiah) (Yen)

Financial Results Forecasts for Fiscal Year

Ending December 31, 2014


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16

Both net sales and operating income have made

steady progress in the fiscal year ending June 30, 2014

Fiscal year ending

December 31, 2014

(Published value)

3 Months Ended June

2014

(Actual)

Achievement

Rate (%)

Net sales 540,000 195,709 36％


56,600

10.5%

18,517

9.5% 33％

Ordinary income

Ordinary income margin

55,000

10.2%

17,001

8.7% 31％

Net income

Net income margin

31,700

5.9%

9,080

4.6% 29％

Note: As the fiscal year ending December 31, 2014 will be a transitional period, the forecasts here are for a nine-

month fiscal year (from April 1, 2014 to December 31, 2014) for consolidated companies whose fiscal year

ended in March and a 12-month fiscal year (January 1, 2014 to December 31, 2014) for consolidated

companies whose fiscal year ended in December.

(Million of yen)

Shareholder Return Policy


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18

We resolved to purchase treasury shares from August 11, 2014

Total acquisition price: ¥8 billion (maximum)

Total number of shares to be acquired: 1.6 million (maximum)

The company hereby announces that the meeting of the Board of Directors of the Company

held on August 8, 2014.

Notice Concerning Acquisition of Treasury Shares

• Reasons for Acquisition: To further return profits to shareholders as well as to enable a

flexible implementation of capital policy in light of the changing business environment.

• Details of Acquisition:

Type of shares to be acquired Common stock

Total number of shares to be acquired 1,600,000 (maximum)

(0.79% of the total issued shares, excluding treasury shares)

Total acquisition price ¥8,000,000,000 (maximum)

Acquisition period August 11, 2014 - October 10, 2014

(Reference) Number of treasury shares as of June 30, 2014

Number of issued and outstanding shares (excluding treasury shares): 201,353,496

Number of treasury shares: 5,591,277

(Please refer to the release as of August 8, 2014)


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枠内に収める枠内に収める Announcement Regarding Stock Split Revisions to Dividends Forecast

• Purpose of Stock Split: This stock split is intended to lower the amount needed per investment unit and thus

provide investors with an environment more conducive for investment, thereby improving the liquidity of the

Company’s shares and expanding the shareholder base.

• Method of Stock Split: Three shares shall be issued for each existing share to shareholders registered or

recorded on the shareholders’ register on the record date of September 30, 2014 (Tuesday).

• Schedule of Proposed Stock Split:

Public Notice of Record Date: Friday, September 12, 2014

Record Date: Tuesday, September 30, 2014

Effective: Wednesday, October 1, 2014

• There will be no change in the amount of the Company’s capital in connection with the proposed stock split.

• Revisions to dividends forecast for fiscal year ending December 31, 2014: The effective date for the stock

split is October 1, 2014, and accordingly there is no change in the dividends forecast of ¥19 per share,

based on the number of shares prior to the stock split, for the first half of the fiscal year ending December

31, 2014. We have revised the forecast for year-end dividends for the fiscal year ending December 31, 2014

to ¥6.40 per share after the stock split. This is equivalent to ¥19.20 per share prior to the stock split, and we

plan to increase dividends by ¥0.20 compared to our previous forecast of ¥19 per share.

(Please refer to the release as of August 8, 2014)

19

We resolved stock split of three shares per share

and revisions to dividends forecast for fiscal year ending

December 31, 2014 from ¥19 to ¥19.20 per share (Before stock split)


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46.2%

58.7%

47.5%49.5%

44.7%

38.3%

55.6%

40.3%

51.4%50.0%

0

5,000

10,000

15,000

20,000

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30,000

'06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12E

0.0%

10.0%

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30.0%

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50.0%

60.0%

70.0%Dividends Purchase of own shares Total retun ratio

20

We will continue to pay dividends that are consistent with earnings and increase

dividends in fiscal year ending December, 2014 through the share

buy back from August 11, 2014 and forecast a 50% total shareholders’ return

(Million of yen)

※ Fiscal year ending Dec. 2014 is an irregular fiscal year lasting nine months.

※


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7 8 9 10 11

15 1518

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21

The planned dividend for fiscal year ending December 31, 2014

is ¥38.20 per share

The dividend is paid out stably and continously

Change in dividends

※ Before stock split

※

（Yen)


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unicharm presentation materials for investor meeting...2014/11/07 · unicharm presentation...

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