FY2016 Q2 Financial Results Briefing · FY2015 Q2 120 yen/1US$ FY2016 Q2 112 yen/1US$ * FUJI...

FY2016 Q2 Financial Results Briefing(Six months ended September 30, 2016)

November 8, 2016

Copyright (C) 2016 Toyo Seikan Group Holdings, Ltd. All rights reserved. 2

Disclaimer

■ This document was prepared solely for information purpose and does not constitute a solicitation for investment in the Company.

■ Although every effort is made to ensure the accuracy of the information contained herein, the Company does not guarantee the completeness of such information.

■ The Company is not liable for any loss or damage whatsoever arising from the use of information contained herein.

■ Future business outlook presented in this document is based on information currently available to the Company and certain assumptions deemed to be reasonable. The actual performance may differ from those projected in the forward looking statements as a result of various factors and estimates may be changed without notice.

■ The information contained herein shall be used at your own discretion and responsibility.

■ The information contained herein shall not be duplicated, copied or otherwise reproduced in whole or in part without the permission of the Company.


Contents

■ The figures shown are all in 100 million yen (rounded down to the minimum unit).

■ Earnings forecast for FY2016 does not incorporate the impact of business integrationwith Hokkan Holdings Limited.

1. FY2016 Q2 Actual

2. FY2016 Forecast


1. FY2016 Q2 Actual

1-1 Consolidated Business Results

1-2 Operating Income Variance

1-3 Net Sales & Operating Income by Segment

1-4 Net Sales & Operating Income by Region

1-5 Capital Investment & Depreciation

1-6 Consolidated Balance Sheet


Earnings increased YoY due to lower cost of sales despite decline in sales of beverage containers in Japan and sales from overseas facilities.

1-1 Consolidated Business Results

【Exchange rate】FY2015 Q2 120 yen/1US$ FY2016 Q2 112 yen/1US$

(Unit: JPY 100 mil)

FY2015 Q2 FY2016 Q2 DifferencePercentage

change

Net sales 4,151 4,025 -125 -3.0%Operating income 187 242 54 29.2%Operating income ratio 4.5% 6.0% 1.5%

Ordinary income 183 202 18 10.2%Ordinary income ratio 4.4% 5.0% 0.6%

Extraordinary income 0 51Extraordinary losses 0 -6

101 140 38 38.2%

2.5% 3.5% 1.0%Net income ratio

Profit attributable to owners ofparent


1-2 Operating Income Variance (FY2015 Q2 vs. FY2016 Q2)

(Unit: JPY 100 mil)

Depreciation, etc.(↘)

Reduction in restructuring

expenses(↗)

DomesticDomestic OverseasOverseas

FY2015 Q2 FY2016 Q2

187

-44

+99

+37

-18-21

+3

Overseas (↗)

Other costs (↘)

Fluctuations in materials &energy costs

(↗)

Net sales (↘)

242




* FUJI TECHNICA & MIYAZU INC. which became a consolidated subsidiary in Q4 FY2015 is included in “Others”.

Difference Difference

Net sales 4,151 4,025 -125 Operating income 187 242 54

Packaging 3,574 3,422 -151 Packaging 139 218 79(Composition) 86% 85% （Operating income ratio） 3.9% 6.4%

Steel plate related 274 269 -5 Steel plate related 4 21 16(Composition) 7% 7% （Operating income ratio） 1.5% 7.8%

197 169 -28 22 -4 -26

(Composition) 5% 4% （Operating income ratio） 11.2% -2.4%

Real estate related 34 36 1 Real estate related 21 22 0(Composition) 1% 1% （Operating income ratio） 61.8% 61.1%

Others 69 128 58 Others 4 -4 -9(Composition) 2% 3% （Operating income ratio） 5.8% -3.1%

Adjustments -4 -10 -5

Functional materialsrelated


(Unit: JPY 100 mil)

FY2015 Q2 FY2016 Q2 FY2015 Q2 FY2016 Q2



* Stolle Machinery Company, LLC (Can Machinery Holdings, Inc. located in the U.S.) is included in “Others”.




Japan 3,542 3,505 -36 Japan 167 219 51(Composition) 85% 87% (Composition) 89% 91%

Asia 312 284 -27 Asia 8 25 17(Composition) 8% 7% (Composition) 4% 11%

Others 296 235 -60 Others 15 -5 -20(Composition) 7% 6% (Composition) 8% -2%

Elimination or corporate -3 2 6-2% 1%

(Unit: JPY 100 mil)

FY2015 Q2 FY2016 Q2 FY2015 Q2 FY2016 Q2


1-5 Capital Investment & Depreciation(Unit: JPY 100 mil)

Depreciation and amortization

Capital investment Investment Details (FY2016)


1-6 Consolidated Balance Sheet

【Exchange rate】As of Mar. 30, 2016: 113 yen/1US$ Sep. 30, 2016: 101 yen/1US$

FY2015 FY2016 Q2 Difference FY2015 FY2016 Q2 Difference

Current assets 5,550 5,366 -184 Liabilities 4,464 4,043 -421

Cash and deposits 1,691 1,590 -101 Current liabilities 2,226 1,989 -236

2,358 2,360 1 Short-term loanspayable

501 471 -30

709 669 -39 Others 1,724 1,518 -205

Others 790 746 -44 Non-current liabilities 2,238 2,053 -185

Non-current assets 5,955 5,732 -223 Long-term loanspayable

1,323 1,095 -228

3,507 3,394 -113 Others 915 958 43

Intangible assets 887 761 -126 Net assets 7,041 7,056 14

1,560 1,577 16 Shareholders’ equity 5,689 5,813 123

Others 1,352 1,242 -109

Total assets 11,506 11,099 -407 11,506 11,099 -407

Accounting title

Total liabilities andnet assets

(Unit: JPY 100 mil)

Accounting title

Notes and accountsreceivable-tradeMerchandise andfinished goods

Property, plant andequipment

Investments andother assets


2. FY2016 Full-year Forecast

2-1 Full-year Consolidated Earnings Forecast

2-2 Operating Income Variance




2-6 Dividend (Forecast)


2-1 Full-year Consolidated Earnings ForecastEarnings will remain flat YoY due to lower cost of sales despite decline in sales of beverage containers in Japan and sales from overseas facilities.

【Exchange rate】FY2015 121 yen/1US$ FY2016 105 yen/1US$

(Unit: JPY 100 mil)

FY2015 FY2016 DifferencePercentage

change

Net sales 8,020 7,800 -220 -2.7%Operating income 323 325 1 0.5%Operating income ratio 4.0% 4.2% 0.1%

Ordinary income 266 300 33 12.5%Ordinary income ratio 3.3% 3.8% 0.5%

Extraordinary income 0 50Extraordinary losses -81 -15

100 190 89 89.5%1.3% 2.4% 1.2%

Profit attributable to owners ofparentNet income ratio


2-2 Operating Income Variance (FY2015 vs. FY2016)

(Unit: JPY 100 mil)

DomesticDomestic OverseasOverseas

323

-46

+138

+79

-80

-46-43

325

FY2015 FY2016

Net sales(↘)

Fluctuations in materials &energy costs

(↗)

Reduction in TSCrestructuring

costs(↗)

Depreciation, etc.(↘)

Other costs(↘)

Overseas(↘)



* FUJI TECHNICA & MIYAZU INC. which became a consolidated subsidiary in Q4 FY2015 is included in “Others”.

【Exchange rate】FY2015 121 yen/1US$ FY2016 105 yen/1US$

(Unit: JPY 100 mil)


Packaging 6,836 6,560 -276 Packaging 246 285 38(Composition) 85% 84% （Operating income ratio） 3.6% 4.3%

Steel plate related 544 540 -4 Steel plate related 11 30 18(Composition) 7% 7% （Operating income ratio） 2.0% 5.6%

384 360 -24 32 5 -27

(Composition) 5% 5% （Operating income ratio） 8.3% 1.4%

Real estate related 69 70 0 Real estate related 41 45 3(Composition) 1% 1% （Operating income ratio） 59.4% 64.3%

Others 185 270 84 Others 11 -10 -21(Composition) 2% 3% （Operating income ratio） 5.9% -3.7%

Adjustments -20 -30 -9

FY2015 FY2016 Difference



FY2015 FY2016 Difference



* Stolle Machinery Company, LLC (Can Machinery Holdings, Inc. located in the U.S.) is included in “Others”.

(Unit: JPY 100 mil)



Japan 6,803 6,790 -13 Japan 255 300 44(Composition) 85% 87% (Composition) 79% 92%

Asia 595 540 -55 Asia 26 50 23(Composition) 7% 7% (Composition) 8% 15%

Other 621 470 -151 Other 42 -25 -67(Composition) 8% 6% (Composition) 13% -8%

Elimination or corporate 0 0 00% 0%

FY2015 FY2016 FY2015 FY2016

【Exchange rate】FY2015 121yen/1US$ FY2016 105 yen/1US$ Reduction in yen equivalent of the sales of overseas companies due to yen’s appreciation: Net sales: -143 mil yen, Operating income: -800 mil yen



(Unit: JPY 100 mil)

Depreciation and amortization Capital investment

Investment Details


2-6 Dividend (Forecast)

Basic Policy on Shareholder Return and Profit Distribution

• Dividend: Pay dividends to shareholders in a stable and sustainable manner, based on a consolidated payout ratio of 20% or higher

• Retained earnings: Apply retained earnings to growing areas from the medium and long term perspectives while maintaining financial stability

• Purchase of treasury shares:Flexibly purchase in response to stock market conditions and financial circumstances

(Unit: Yen)

Dividend per shareQ2 7.00 7.00 7.00Q4 7.00 7.00 7.00

Annual 14.00 14.00 14.00

FY2014 FY2015 FY2016(Forecast)

FY2016 Q2 Financial Results Briefing · FY2015 Q2 120 yen/1US$ FY2016 Q2 112 yen/1US$ * FUJI...

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