Toyobo : Presentation to Investors for Year Ended March 31, 2023 (249KB)
May 10, 2023
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May 11, 2023
Presentation to Investors
for Year Ended March 31, 2023
TOYOBO CO., LTD.
Highlights
FY 3/23 Results
Although sales increased because we proceeded with product price revisions, profit declined due to the considerable impacts of higher raw material and fuel prices, along with deteriorating market conditions for industrial film and increasing expenses to launch new equipment. Loss came to ¥0.7 bn. due to an extraordinary losses of ¥15.7 bn. including impairment losses on the nonwoven materials business.
Net sales
+6.4%
Operating profit
- 64.6%
Profit (loss) attributable to
owners of parent
(¥ bn.)
375.7
399.9
28.4 10.1
12.9
- 0.7
FY 3/22
FY 3/23
FY 3/24 Forecasts
FY 3/22
FY 3/23
FY 3/22
FY 3/23
We forecast operating profit of ¥15.0 bn. (approx. 1.5x increase YOY) and net profit of ¥4.0 bn., reflecting not only
a recovery in market conditions for industrial film, etc., but further price revisions and implementation of measures
for businesses requiring improvement.
2
Reference: External Environment -
FY 3/23 reviews and FY 3/24 assumptions
FY 3/23
The global economy slowed down
Rising raw material and fuel prices stemming from the impact of the situation in Ukraine, among others.
Monetary tightening policies in Europe and the United States and China's zero-COVID policy (lockdowns).
The domestic economy's recovery remained slow
The normalization of the economy from COVID-19 pandemic was seen in the second half of the year.
Rising raw material and fuel prices, and delays in the recovery of automobile production due to shortages in the supply of materials such as semiconductors.
FY 3/24
The global economy
The economy in China is expected to recover gradually following the resumption of economic activities due to the lifting of lockdowns.
The economy in Europe and the United States will slow down as a result of monetary tightening policies in response
to increasing inflationary pressure.
The domestic economy
The raw material and fuel prices will remain high, although decline compared to FY 3/23.
A moderate economic recovery is expected mainly in domestic demand, following the end of the COVID-19 pandemic.
ROE* *Profit / Beginning and ending balance average shareholder's equity
2.3%
6.8%
-
-
-
ROIC*
*NOPAT / (Interest-bearing debt + Net assets)
5.0%
5.1%
1.7%
-
-
Extraordinary income: ¥5.6 bn. for insurance claim income related to the fire accident, ¥2.9 bn. for gain on sale of investment securities.
Extraordinary losses: Impairment losses of ¥9.8 bn. on assets to be suspended and business assets for the nonwoven materials business, etc.
- Dividends will be ¥40 per share (planned)
4
Analysis in Changes in Operating Profit
30.0
25.0
Raw material and fuel costs
- 17.0
Prices Volume
+11.9 - 7.0
20.0
(¥bn.) 15.0 10.0
5.0
0.0
28.4
- Industrial film (-) - VOC recovery equipment (+), etc.
Others
- 6.2
Expenses to launch new equipment
Responses to FDA
Development of the business base
Cost reduction (+)
10.1
(- 18.4)
FY 3/22
FY 3/23
FY 3/21
FY 3/22
FY 3/23
H1
H2
H1
H2
Exchange rate (/US$)
106
110
115
112
134
137
135
Naphtha price in Japan (thousand/kl)
31
51
63
57
84
70
77
5
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Disclaimer
Toyobo Co. Ltd. published this content on 11 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 June 2023 15:32:10 UTC.
Toyobo Co Ltd is a Japan-based company mainly engaged in the film and functional resin business, industrial material business, and textile and commerce business. It has five business segments. Film and Functional Resin segment manufactures, processes and sells packaging films, industrial films, industrial adhesives, engineering plastics and optical functional materials. Industrial Materials segment manufactures, processes and sells automotive fiber materials, super fibers, non-woven fabrics. Textile and Trading segment manufactures and sells functional clothing, apparel products, clothing textiles, and clothing fibers. Healthcare segment manufactures, processes and sells bio products, pharmaceuticals, medical membranes, medical devices, aqua membranes, and functional filters. It is also engaged in the assembly and sale of seawater desalination modules. The Real Estate segment sells, rents and manages movables. It also designs and constructs buildings and machinery and sells equipment.