02 16-13 kao results-q3-1
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Transcript of 02 16-13 kao results-q3-1
Annual Financial Review
From April 1, 2012 to December 31, 2012
Kao Corporation
February 5, 2013
This is a translation of materials used for the analyst meeting held in Japan on February 5, 2013.
2
Forward-looking statements such as earnings forecasts and other projections contained in this release are based on information available at this time and assumptions that management believes to be reasonable, and do not constitute guarantees of future performance. Actual results may differ materially from those expectations due to various factors.
These presentation materials are available on ourwebsite in PDF format: http://www.kao.com/jp/en/corp_ir/presentations.html
Note: The yen amounts in these presentation materials, which were previously truncated to their respective units for presentation, are rounded to the nearest unit from FY2012, ended December 31, 2012. Figures for FY2011, ended March 31, 2012, and prior fiscal years have also been restated for ease of comparison.
3
1. Business Environment April 1, 2012 – December 31, 2012
4
90
95
100
105
110
2H/FY10 1H/FY11 2H/FY11 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12
FY2012
(%)2
Consumer Products1 Market in Japan
(Source: SRI POS data by INTAGE Inc.)
79 major household and personal care categories (all manufacturers)
MonthlySemiannually
1 Consumer products do not include prestige cosmetics.2 Year-on-year growth rate of market size in value (yen)3. The data of 2H/FY10 includes hoarding due to the earthquake in March 2011.
3
5
959596
979797
99100100
94
80
85
90
95
100
105
1H/FY08 2H/FY08 1H/FY09 2H/FY09 1H/FY10 2H/FY10 1H/FY11 2H/FY11 1H/FY12 Oct-Dec 2012
Consumer Purchase Prices in JapanIndex
Comparison with Oct-Dec 2011
Body cleansers ShampooHair styling agents ConditionerToothpaste Hair colorToothbrushes Sanitary napkinsFabric softener Adult incontinence productsDishwashing detergents Facial cleansers
Makeup removerBaby diapersLaundry detergents
15 major household and personal care categories (all manufactures)
(Source: SRI POS data by INTAGE Inc.)
6
2. Consolidated Business ResultsApril 1, 2012 – December 31, 2012
* Kao Corporation and certain consolidated subsidiaries with the same fiscal year end
Fiscal year end is December 31 from FY2012
Term of consolidation for FY2012 as a transitional period Group companies whose fiscal year end was previously March 31 *:April-December 2012Group companies whose fiscal year end is already December 31:January-December 2012
Restated FY2011Figures for the nine-month period from April 1 to December 31, 2011 for group companies whose fiscal year end was previously March 31.
Adjusted growthComparison with the nine-month period from April 1 to December 31, 2011 for group companies that previously had a fiscal year end in March
7
1. Consumer purchase price of 15 major household and personal care categories market in Japan1: 1st half: -1 point year-on-yearOct.-Dec.: Flat
2. Growth of household and personal care market in Japan2 (Apr.-Dec.): +1%3. Growth of the cosmetics market in Japan3 (Apr.-Dec.): -0.2%
1. Consumer purchase price of 15 major household and personal care categories market in Japan1: 1st half: -1 point year-on-yearOct.-Dec.: Flat
2. Growth of household and personal care market in Japan2 (Apr.-Dec.): +1%3. Growth of the cosmetics market in Japan3 (Apr.-Dec.): -0.2%
Japan sales related
Key Points in FY2012
1. Net sales: ¥1,012.6 billion +0.4%Effect of currency translation: -¥7.3 billion -0.7%Sales growth excluding effect of currency translation: +¥11.6 billion +1.1%
2. Increase/decrease in operating income5: +¥3.1 billion
1. Net sales: ¥1,012.6 billion +0.4%Effect of currency translation: -¥7.3 billion -0.7%Sales growth excluding effect of currency translation: +¥11.6 billion +1.1%
2. Increase/decrease in operating income5: +¥3.1 billion
Income statements related
1 Index with the 1st half of FY2008 as 100 (Source: SRI POS data by INTAGE Inc.)2 Source: SRI POS data by INTAGE Inc.3 Source: SLI data by INTAGE Inc.4 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)5 Please refer to slide 12 for details.6 Free cash flow = Net cash provided by operating activities + Net cash used in investing activities7 Includes payments of cash dividends to minority shareholders.
1. Free cash flow6 ¥52.7 billion2. Payments of cash dividends7: ¥33.5 billion
1. Free cash flow6 ¥52.7 billion2. Payments of cash dividends7: ¥33.5 billion
Cash flow related
Adjusted growth4
8
FY2012 Consolidated ResultsBillion yen FY11 FY11 1 FY12
Net Sales 1,216.1 1,008.3 1,012.6 +0.4%
EBITA 2 142.2 124.2 125.7 +1.2%EBITA* Margin 11.7% 12.3% 12.4%
Operating Income 108.6 98.5 101.6 +3.2%Operating Margin 8.9% 9.8% 10.0%
Ordinary Income 110.0 100.2 104.2 +4.0%
Net Income 52.4 51.8 62.4 +20.5%
EBITDA 188.4 160.6 161.4 +0.4%
ROE 3 9.8% -0 11.0%EPS (yen) 100.46 99.16 119.55 +20.6%1 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)2 Operating income before amortization of goodwill and intellectual property rights related to M&A.3 ROE of FY2012 is for the transitional period connected with the change in fiscal year end.
Adjustedgrowth 1
Restated
9
Consolidated Net Sales [1]Restated FY2011 1
Adjusted 1 Like-for-like 2
Beauty Care Business 311.9 312.6 +0.2 +0.2Human Health Care Business 125.8 131.6 +4.6 +4.6Fabric and Home Care Business 204.5 208.9 +2.1 +2.1Japan total 642.3 653.1 +1.7 +1.7Asia 3 81.5 87.2 +7.0 +7.8Americas 3 55.1 56.6 +2.7 +2.1Europe 61.5 57.3 -6.9 -1.8Eliminations -21.4 -21.0 - - Consumer Products Business 819.0 833.2 +1.7 +2.1
1: Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)2: Excludes the effect of currency translation and the impact of the change in financial term. (Please refer to slide 6 for details.)3: Australia and New Zealand, which had been included in Asia until FY2011, have been reclassified to Americas from FY2012. The results of FY2011 have been restated for the purpose of comparison.
FY2012Billion yen Billion yen
% Growth
10
Consolidated Net Sales [2]Restated FY2011 1
Adjusted 1 Like-for-like 2
Japan 95.6 92.0 -3.8 -3.8Asia 89.2 75.6 -15.3 -15.0Americas 35.9 33.6 -6.5 -5.2Europe 55.7 53.5 -4.0 +3.6Eliminations -57.2 -46.5 - - Chemical Business 219.2 208.1 -5.1 -3.1
Eliminations -30.0 -28.6 - -
Consolidated net sales 1,008.3 1,012.6 +0.4 +1.1
Billion yen Billion yen
FY2012% Growth
1: Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)2: Excludes the effect of currency translation and the impact of the change in financial term. (Please refer to slide 6 for details.)
11
Billion yen % Billion yen %
Net Sales 1,216.1 100.0 1,012.6 100.0 +0.4Cost of Sales 525.0 43.2 442.5 43.7 0.0
Gross Profit 691.1 56.8 570.1 56.3 0.0SG&A Expenses2 582.5 47.9 468.5 46.3 0.0
Operating Income 108.6 8.9 101.6 10.0 +3.2Non-operating Income/Expenses 1.4 0.1 2.6 0.3 0.0
Ordinary Income 110.0 9.0 104.2 10.3 +4.0Extraordinary Gain/Loss -4.8 -0.4 -1.9 -0.2 0.0
105.3 8.7 102.3 10.1 0.0
Income Taxes 50.8 4.2 38.5 3.8 0.0
54.5 4.5 63.8 6.3 0.0
Minority Interests 2.1 0.2 1.4 0.1 0.0Net Income 52.4 4.3 62.4 6.2 +20.5
Income Before MinorityInterests
Income Before Income Taxesand Minority Interests
FY2011 FY2012 Adjusted
% growth1
Consolidated Income Statements
1 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)2 Amortization related to Kanebo Cosmetics
FY2011: 27.4 billion yen, FY2012: 20.5 billion yen
12
+7.0 billion yen Increase in sales volume
-7.5 billion yen Impact from change in raw material prices
+8.0 billion yen Total Cost Reduction (TCR)
+0.0 billion yen
-4.4 billion yen Product mix and others
Increase (decrease) in SG&A expenses
+3.1 billion yen
FY2012 Consolidated Operating Income Analysis
FY2012Operating Income
101.6 billion yen
Restated FY2011Operating Income*
98.5 billion yen
Comparison with restated FY2011
* Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)
13
Consolidated Cost of Sales and SG&A to Net Sales%%
Cost of Sales ratioSG&A ratio
OperatingMargin
* Structure has changed significantly since FY2006 due to the consolidation of Kanebo Cosmetics.The impact of the change in financial term is included in FY2012. (Please refer to slide 6 for details.)
43.2
44.0
42.0
43.8
41.8
40.9
41.6 42.043.2 43.7
43.8
43.6
49.2 48.6
44.9
49.350.4
49.147.9
46.3
13.0 12.4
8.87.6
13.3
9.87.9
8.8 8.910.0
30
35
40
45
50
55
FY04 04 05 06 07 08 09 10 11 120
10
20
30
40
SG&A ratio (left scale)
Operating Margin(right scale)
Cost of Salesratio (left scale)
Cost of Salesratio (left scale)
SG&A ratio (left scale)
Operating Margin(right scale)
14
Breakdown of Major Consolidated SG&A Expenses
(Billion yen)
FY2011 FY2012*Total SG&A Expenses 582.5 468.5
Freight/Warehouse 68.4 56.8Advertising 82.2 67.0Sales Promotion 63.0 52.1Salaries and Bonuses 121.8 97.7R&D 48.2 37.5*Includes the impact of the change in financial term. (Please refer to slide 6 for details)
15
Consolidated Non-operating Income/Expenses and Extraordinary Gain/Loss
(Billion yen)
FY2011 FY2012*Non-operating Income 5.3 5.0
Interest Income 0.9 0.8Dividend Income 0.2 0.2Equity in Earnings of NonconsolidatedSubsidiaries and Affiliates 1.7 1.7Other 2.6 2.3
Non-operating Expenses 3.9 2.3Interest Expense 2.2 1.2Foreign Currency Exchange Loss 0.6 0.3Other 1.1 0.9
FY2011 FY2012*Extraordinary Gain 0.3 0.6
Gain on Sales of Fixed Assets 0.2 0.1Gain on Sales of Stock of Subsidiary - 0.3Other 0.1 0.2
Extraordinary Loss 5.0 2.6Loss on Sales/Disposals of Fixed Assets 2.4 2.2Loss related to the Great East JapanEarthquake 2.0 - Other 0.6 0.3*Includes the impact of the change in financial term. (Please refer to slide 6 for details)
Extraordinary Gain/Loss
Non-operating Income/Expenses
16
Adjustedchanges 3
Adjustedgrowth 3
Billion yen % ofnet sales Billion yen % of
net sales Billion yen %
Net Sales1 444.5 - 444.4 - -0.1 -0.0%
EBITA2 42.6 9.6% 45.9 10.3% +3.2 +7.6%
Operating Income 17.0 3.8% 21.8 4.9% +4.8 +28.0%
Net Sales1 144.1 - 152.0 - +7.9 +5.5%
Operating Income 12.6 8.7% 11.5 7.6% -1.0 -8.3%
Net Sales1 230.4 - 236.7 - +6.3 +2.8%
Operating Income 47.2 20.5% 51.4 21.7% +4.1 +8.7%
Net Sales1 219.2 - 208.1 - -11.2 -5.1%
EBITA2 21.8 9.9% 16.9 8.1% -4.9 -22.5%
Operating Income 21.7 9.9% 16.8 8.1% -4.9 -22.6%
Net Sales 1,008.3 - 1,012.6 - +4.3 +0.4%
EBITA2 124.2 12.3% 125.7 12.4% +1.6 +1.2%
Operating Income 98.5 9.8% 101.6 10.0% +3.1 +3.2%
Restated FY2011 3 FY2012
Consolidated
Beauty CareBusiness
Human HealthCare Business
Fabric and HomeCare Business
ChemicalBusiness
1 Before elimination of intersegment transfers2 Operating income before amortization of goodwill and intellectual property rights related to M&A3 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)
Consolidated Results by Segment
17
[Reference] Consolidated Results by Geographic AreaAdjustedchanges 4
Adjustedgrowth 4
Billion yen % ofnet sales Billion yen % of
net sales Billion yen %
Net Sales1 712.3 - 720.8 - +8.4 +1.2%
EBITA2 101.3 14.2% 108.8 15.1% +7.5 +7.4%
Operating Income 77.6 10.9% 86.5 12.0% +9.0 +11.5%
Net Sales1 167.6 - 159.9 - -7.8 -4.6%
Operating Income 9.4 5.6% 6.3 3.9% -3.2 -33.7%
Net Sales1 90.9 - 90.0 - -0.9 -1.0%
EBITA2 4.4 4.8% 3.4 3.7% -1.0 -23.4%
Operating Income 3.7 4.0% 2.7 3.0% -0.9 -25.3%
Net Sales1 117.0 - 110.5 - -6.5 -5.5%
EBITA2 9.3 7.9% 7.4 6.7% -1.9 -20.7%
Operating Income 8.0 6.9% 6.1 5.5% -1.9 -23.7%
Net Sales 1,008.3 - 1,012.6 - +4.3 +0.4%
EBITA2 124.2 12.3% 125.7 12.4% +1.6 +1.2%
Operating Income 98.5 9.8% 101.6 10.0% +3.1 +3.2%
Japan
Asia 3
Restated FY2011 4 FY2012
Americas 3
Europe
Consolidated
1 Before elimination of intersegment transfers2 Operating income before amortization of goodwill and intellectual property rights related to M&A3 Australia and New Zealand, which had been included in Asia until FY2011, have been reclassified to Americas from FY2012. The results of FY2011 have been restated for the purpose of comparison.4 Excludes the impact of the change in financial term. (Please refer to slide 6 for details.)
18
0
200
400
600
800
1,000
FY2010 FY2011 FY20120
50
100
150
0
50
100
150
200
FY2010 FY2011 FY2012-5
0
5
10
15
0
50
100
150
200
FY2010 FY2011 FY20120
5
10
15
Consumer Products Business by Geographic Area
Sales (Billion yen) Operating Income(Billion yen)
AsiaJapan
Americas & Europe
Net Sales
Operating Income
* Australia and New Zealand, which had been included in Asia until FY2011, have been reclassified to Americas from FY2012. The results of FY2011 have been restated for the purpose of comparison.The results of Japan in FY2012 include the impact of the change in financial term. (Please refer to slide 6 for details.)
19
Chemical Business by Geographic AreaSales (Billion yen) Operating Income
(Billion yen)
AsiaJapan
Americas & Europe
0
50
100
150
FY2010 FY2011 FY20120
5
10
15
20
0
50
100
150
FY2010 FY2011 FY20120
5
10
15
20
0
50
100
150
FY2010 FY2011 FY20120
5
10
15
20Net Sales
Operating Income
* The results of Japan in FY2012 include the impact of the change in financial term. (Please refer to slide 6 for details.)
20
Consolidated Balance Sheets(Billion yen)
Mar/12 Dec/12 Changes Mar/12 Dec/12 ChangesCurrent Assets 432.9 493.4 +60.5 Current Liabilities 274.9 315.9 +41.0
Cash and Time Deposits 85.5 99.3 +13.9 Notes and AccountsPayable - Trade 110.7 105.5 -5.2
Notes and AccountsReceivable - Trade 142.9 164.3 +21.4Short-term Investments 46.8 57.4 +10.6Inventories 120.7 122.2 +1.5 Accounts Payable - Other 48.5 52.5 +4.0Other 37.1 50.2 +13.1 Accrued Expenses 73.5 74.4 +0.9
Accrued Income Taxes 18.3 11.7 -6.6Liability for loss related to theGreat East Japan Earthquake 0.0 - -0.0Other 21.8 18.7 -3.1
Fixed Assets 558.3 546.6 -11.8 Long-term Liabilities 166.7 118.4 -48.3Property, Plant andEquipment 240.6 252.3 +11.8 Bonds/Long-term Loans 100.0 50.1 -50.0
Intangible Assets 237.5 215.9 -21.5 Other 66.6 68.3 +1.7Investments and OtherAssets 80.3 78.3 -2.0 Total Liabilities 441.6 434.3 -7.3
Shareholders' equity 633.5 663.6 +30.1-Common Stock 85.4 85.4 - -Capital Surplus 109.6 109.6 - -Retained Earnings 447.6 477.6 +30.0-Treasury Stock, at Cost -9.1 -9.0 +0.1Accumulated othercomprehensive income -95.5 -71.3 +24.2- Unrealized Gain on Available-for-sale Securities 2.3 2.4 +0.2
- Deferred Gain (Loss) on Derivatives under Hedges Accounting -0.0 0.0 +0.0- Foreign Currency Translation Adjustments -96.1 -71.9 +24.2
- Post retirement adjustments for foreign consolidated subsidiaries -1.7 -1.9 -0.2Stock Acquisition Rights 1.2 1.3 +0.1Minority Interests 10.4 12.1 +1.7
Total Net Assets 549.7 605.7 +56.0
Total Assets 991.3 1,040.0 +48.7 Total Liabilities andTotal Net Assets 991.3 1,040.0 +48.7
Bonds/Short-term Loans(incl. Current Portion ofBonds/Long-term Loans)
2.1 53.1 +51.1
21
Consolidated Statements of Cash Flows
<Net cash used in investing activities>Capital expenditures: - Construction of new plants in China and Indonesia
- Production capacity enhancement of fatty alcohols in the Philippines- Production facilities for new products- Production capacity expansion - Optimization of distribution bases- IT related, etc.
<Net cash used in financing activities>Payments of cash dividends (Includes payments of cash dividends to minority shareholders) : 33.5 billion yen
1 Includes impact of change in financial term. (Please refer to slide 6 for details.)2 Free cash flow = Net cash provided by operating activities + Net cash used in investing activities
(Billion yen)FY2011 FY2012 1
Net Cash Provided by Operating Activities 125.0 97.4
Net Cash Used in Investing Activities -49.0 -44.6
Net Cash Used in Financing Activities -86.2 -32.0
-3.3 9.7
-13.4 30.4
143.1 129.7
- 0.3
Cash and Cash Equivalents, End of Period 129.7 160.4
Total Debt at End of Period 102.1 103.2
Free Cash Flow 2 76.1 52.7
Translation Adjustments on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Period
Cash and Cash Equivalents from Newly ConsolidatedSubsidiary, Increase
22
Share Repurchase(Million Shares)
Aggregate to December 2012137.6 MM shares363.8 Billion yen
* Share repurchase from the market
Billion yen 29.5 28.6 56.8 77.2 36.7 70.0 5.0 - 30.0 - - 30.0 - -
--
13.9
--2.0
27.3
16.0
29.1
19.9
9.3
-
10.010.0
0
5
10
15
20
25
30
35
FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
23
3. Forecast for FY 2013
* Kao Corporation and certain consolidated subsidiaries with the same fiscal year end
Fiscal year end is December 31 from FY2012
Term of consolidation for FY2012 as a transitional period Group companies whose fiscal year end was previously March 31 *:April-December 2012Group companies whose fiscal year end is already December 31:January-December 2012
Restated FY2012Figures for the twelve-month period from January 1 to December 31, 2012 for group companies whose fiscal year end was previously March 31.
Adjusted growthFY2012 actualComparison with the nine-month period from April 1 to December 31, 2011 for group companies that previously had a fiscal year end in MarchFY2013 forecastComparison with the twelve-month period from January 1 to December 31, 2012 for group companies whose fiscal years ended in March before the fiscal year end change
24
Major Assumptions for FY2013 ForecastYear-on-year growth rate of market size in value (yen) for the Consumer Products Business1 in Japan: 0 to +1% year-on-yearYear-on-year growth rate of cosmetics market size in value (yen) in Japan: Flat
Net sales: ¥1,270.0 billion +4.1%Effect of currency translation: +¥30.0 billion +2.5%Sales growth excluding effect of currency translation: +¥19.6 billion +1.6%
Impact from change in raw material prices:Gross impact: +¥4 billionNet impact: -¥3 billion
Total Cost Reduction (TCR) activities: +¥5 billionCapital expenditures/depreciation and amortization
Capital expenditures: ¥60 billionDepreciation and amortization: ¥76 billion
Share repurchases: Up to ¥30 billion or up to 12.5 million shares plannedExchange rate assumptions
90 yen/USD (FY2012 actual exchange rate [average]: 80.12 yen/USD)115 yen/Euro (FY2012 actual exchange rate [average]: 103.46 yen/Euro)
Estimated impact on income
1 Excludes prestige cosmetics.2 Excludes the impact of the change in financial term. (Please refer to slide 23 for details.)
Adjusted growth2
25
FY2012[Reference]
RestatedFY2012
FY2013(F)
Billion yen Adjusted% growth Billion yen Billion yen Adjusted
% growth
Net Sales 1,012.6 +0.4 1,220.4 1,270.0 +4.1
Operating Income 101.6 +3.2 111.8 116.0 +3.8
[% of Sales] 10.0% 9.2% 9.1%Ordinary Income 104.2 +4.0 114.1 117.0 +2.5
[% of Sales] 10.3% 9.4% 9.2%Net Income 62.4 +20.5 62.7 73.0 +16.4
[% of Sales] 6.2% 5.1% 5.7%
Net Income per Share (yen) 119.55 +20.6 120.21 142.60 +18.6ROE 11.0% - 11.1% 12.2% -
161.4 +0.4 189.2 192.0 +1.5
Cash Dividends per Share (yen) 62.0 +3.3 62.0 64.0 +3.2
EBITDA(Operating Income + Depr. & Amort.)
Consolidated Sales and Profit Forecast
1 Exchange rate assumptions: 90 yen/USD,115 yen/Euro2 Excludes the impact of the change in financial term. (Please refer to slide 23 for details.)3 ROE forecast of FY2012 is for the transitional period connected with the change in fiscal year end.4 Kanebo Cosmetics (Apr. -Dec. 2012) : Net sales = approximately ¥150 billion / operating margin before deduction of royalties =
slightly more than 7%; amortization related to Kanebo Cosmetics: ¥20.5 billion5 Kanebo Cosmetics (Jan. -Dec. 2013) : Net sales = slightly more than ¥190 billion / operating margin before deduction of royalties
= approximately 8%; amortization related to Kanebo Cosmetics: ¥26.5 billion
2
3
1
2
524
26
Sales Outlook by Segment – FY2013
Consolidated Net Sales 1,270 +4.1%By Segment1
<Billion yen>
Beauty Care
Human Health Care
Fabric and Home Care
Chemical
Reference:By Geographic Area1
1 Sales are before elimination of transactions between segments or geographic areas.2 Excludes the impact of the change in financial term. (Please refer to slide 23 for details.)
560
197
305
242
+4.1%
+3.9%
+4.5%
+2.3%
Japan
Americas
Europe
956
181
99
117
+2.4%
+13.1%
+10.0%
+5.9%
Adjustedgrowth2
Adjustedgrowth2
Adjustedgrowth2
Asia
27
Sales Outlook – FY2013
<Billion yen>
- Consumer Products Business in Japan -
*Excludes the impact of the change in financial term. (Please refer to slide 23 for details.)
FY2012 FY2013 FY2012 FY2013
Actual Forecast Actual(9 months)
Forecast(12 months)
Beauty Care 203.6 197.0 +1.8% 312.6 413.0 +1.2%
Human Health Care 84.9 81.0 +0.5% 131.6 173.0 +1.6%
Fabric and Home Care 132.6 120.0 +3.6% 208.9 273.0 +3.2%
Consumer Products Business 421.1 398.0 +2.1% 653.1 859.0 +1.9%
Adjustedgrowth*
Adjustedgrowth*
1st Half Full Year
28
FY2013 Outlook by Segment/Geographic AreaIncrease in operating incomeDecrease in operating incomeIncrease in net sales
Decrease in net sales
CP1 – Japan
CP1 – Asia
Chemical – Asia
CP1 – Americas
Chemical – Japan CP1 – Europe
1: CP = Consumer Products2: Excludes the impact of the change in financial term. (Please refer to slide 23 for details.)
Chemical – Americas
Chemical – Europe
29
1,270.0
1,012.6
1,216.11,186.81,184.41,276.3
0
200
400
600
800
1,000
1,200
1,400
FY08 09 10 11 12 13(F)
116.0
96.8 94.0104.6 108.6 101.6
134.7 129.5 139.1 142.2125.7
144.4
9.1%10.0%8.9%8.8%7.9%7.6%
10.6% 10.9%11.7% 11.7%
12.4%11.4%
0
20
40
60
80
100
120
140
160
180
200
220
240
Consolidated Net Sales/EBITA1/Operating Income
SalesBillion yen
ProfitBillion yen
Operating Margin
Net Sales
EBITA
[Full Year]
EBITA Margin
Operating Income
1 Operating income before amortization of goodwill and intellectual property rights related to M&A2 Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.)
2
30
EBITDABillion yen
*Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.)
*
96.8 94.0 104.6 108.6 101.6
87.5 84.881.4 79.8
59.8
116.0
76.0
192.0184.3
161.4
188.4186.0178.8
0
50
100
150
200
250
FY08 09 10 11 12 13(F)
Depretiation & AmortizationOperating IncomeTotal
31
ROE & ROA(%)
ROA: Ordinary Income / Total assets
1,2
1 Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.)2 ROE and ROA of FY2012 are for the transitional period connected with the change in
fiscal year end.
12.213.111.7 11.5
7.38.5
9.8
14.9
11.0
11.612.8
9.7 9.28.0
8.69.9
10.9
10.3
0
5
10
15
20
FY05 06 07 08 09 10 11 12 13(F)
ROE ROA
32
Net Income per Share
Net Income(Billion yen)
Net Income per Share
(yen)Weighted AverageNumber of Shares Outstanding (MM)
* Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.)
*
544 544 543 536 536 533 522 511522
73.0
62.4
52.446.7
40.5
64.566.670.571.1
142.6
119.6100.5
87.775.6
120.3122.5129.4130.6
0
10
20
30
40
50
60
70
80
90
FY05 06 07 08 09 10 11 12 13(F)0
20
40
60
80
100
120
140
160
180
200Net IncomeNet Income per Share
33
Cash Dividends per Share(Yen)
*Impacts of share splits are retroactively reflected.
Dividend increase for the 23rd consecutive year in FY2012
7.10 7.108.87 9.09 10.0010.5011.5012.5014.0015.0016.00
20.00
24.00
30.00
64.0062.00
60.0058.00
57.0056.0054.00
52.0050.00
38.00
32.00
26.00
0
10
20
30
40
50
60
70
FY88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 1213
(F)
34
25.0 27.434.4 29.9
19.4
17.5
33.0
27.0
22.519.6
17.314.7
60.0
41.947.249.1
44.944.6
0
50
100
FY08 09 10 11 12 13(F)
Parent Subsidiaries
Capital Expenditures(Billion yen)
1 Includes long-term prepaid expenses.2 Fiscal year end is December 31 from FY2012. (Please refer to slide 23 for details.)
2
35
FY2013 Quarterly Consolidated Sales and Profit Forecast
(Billion yen)(Billion yen)
Net Sales Operating Income
* Fiscal year end is December 31 from FY2012. Figures for the twelve-month period from January 1 to December 31, 2012 for Kao Corporation and its subsidiaries whose fiscal year end was previously March 31. (Please refer to slide 23 for details.)
284.7
578.7
1,220.4
890.1
600.0
1 ,270.0
3 months 6 months 9 months Fiscal year
Net Sales 2012Net Sales 2013
14.4
34.9
111.8
69.4
32.0
116.0
3 months 6 months 9 months Fiscal year
Operating Income 2012Operating Income 2013