Results Presentation for the First Nine Months of …...(Securities code: 6370) Results Presentation...
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(Securities code: 6370) Results Presentation for the First Nine Months of the Year Ending March 31, 2018 Kurita Water Industries Ltd. February 1, 2018
Transcript of Results Presentation for the First Nine Months of …...(Securities code: 6370) Results Presentation...
(Securities code: 6370)
Results Presentation for the First Nine Months of the Year Ending March 31, 2018
Kurita Water Industries Ltd.
February 1, 2018
Table of Contents
Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018I
II
P 1 - 9
P10-16Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
1
Three Quarters of FY ended March 2017
Three Quarters of FY ending March 2018 Year-on-Year Change
Orders 162.1 187.9 + 15.9%
Net sales 152.1 163.5 + 7.5%
Operating income 13.6 14.9 + 8.9%
Non-operating income and expenses 0.5 - 0.1 －
Ordinary income 14.1 14.7 + 4.4%
Extraordinary income 0.4 4.0 －
Profit attributable to owners of parent 10.1 13.5 + 33.5%
Orders increased significantly due to new consolidation in the Water Treatment Chemicals business and large orders in the Water Treatment Facilities business.
Operating income rose due to increased revenue and an improvement in the cost of sales ratio in the Water Treatment Facilities business.
A marginal gain on the step acquisition of shares in an equity-method affiliate and a gain on sales of shares of other listed companies were posted to extraordinary income.
Foreign exchange rate
(yen)
Three Quarters of FY ended March 2017
Three Quarters of FY ending March 2018
USD 108.69 111.92
EUR 121.17 124.55
CNY 16.50 16.47
(Billions of Yen)
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
2
100.9 121.4
61.2 66.5
162.1 187.9
0
100
200
16/12期 17/12期
9.6
8.4 8.6
9.5
9.0 9.1
8
9
10
16/12期 17/12期
90.8 97.0
61.3 66.5
152.1 163.5
0
100
200
16/12期 17/12期
7.8 9.3
5.9 5.6
13.6 14.9
0
8
16
16/12期 17/12期
Water treatment chemicals
Water treatment facilities Total
Orders Sales
Operating Income Operating Income Margin
(Billions of Yen)
(Billions of Yen)
(Billions of Yen)
(%)
12/2016 12/2017
12/2016 12/2017
12/2016 12/2017
12/2016 12/2017
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
3
61.2 66.5
0
35
70
16/12期 17/12期
61.3 66.5
0
35
70
16/12期 17/12期
5.9 5.6
9.6 8.4
0
6
12
0
5
10
16/12期 17/12期
Operating income decreased due to an increase in personnel expenses associated with active expansion overseas and an increase in IT-related expenses.
Domestic orders rose 2.9% due to the growth of main products.
Overseas orders increased by 15% primarily due to new consolidation. There was also a 5% increase when new consolidation is excluded.
(Billions of Yen)
(Billions of Yen)
(Billions of Yen) Operating Income(%)
Operating income margin
Orders
Same as above.
Sales
12/2016 12/2017
12/2016 12/2017
12/2016 12/2017
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
4
51.9 73.2
0
40
80
16/12期 17/12期
52.4 55.7
0
30
60
16/12期 17/12期
(Billions of Yen)Orders
Sales increased in Japan due to the progress with construction in large projects.
Sales of maintenance services in Japan grew in response to customers’ increased production.
Orders in the ultrapure water supply business declined due to revision of contracts.
Operating income was adversely affected by the decline in sales in the ultrapure water supply business.
Operating income was positively affected by an increase in sales in businesses other than the ultrapure water supply business and an improvement in the cost of sales ratio in the overseas hardware business.
Domestic orders for hardware increased due to the receipt of orders for large projects in the first quarter.
Large orders continued to be received for FPD and semiconductors in China and South Korea.
Orders in the ultrapure water supply business declined due to revision of contracts.
Sales
Operating Income
Operating income margin
7.7 8.0
14.6 14.3
0
10
20
0
6
12
16/12期 17/12期
(%)
12/2016 12/2017
12/2016 12/2017
12/2016 12/2017(Billions of Yen)
(Billions of Yen)
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
5
48.9 48.2
0
25
50
16/12期 17/12期
38.4 41.3
0
25
50
16/12期 17/12期
(Billions of Yen)Orders
Sales of hardware for electric power industry rose. In business for general industries, sales increased for
both hardware and maintenance. Soil remediation sales declined.
Operating income increased due to improvement in the profitability of hardware for electric power industries, and hardware and maintenance services for general industries.
Orders for hardware in electric power industries and hardware in general industries decreased.
Orders for maintenance services for general industries increased due to demand associated with renovating old facilities and demand for expansion.
Sales
Operating Income
Operating income margin
0.1 1.3
0.3
3.2
-4.0
0
4.0
0
1
2
16/12期 17/12期
(Billions of Yen) (%)
12/2016 12/2017
12/2016 12/2017
12/2016 12/2017(Billions of Yen)
40.8 44.1
4.8 5.2
21.9 20.3
67.5 69.6
0
40
80
16/12期 17/12期
I.Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
6
Maintenance, etc.
Tool cleaning
Ultrapure water supply business
Service Business Sales in the Water Treatment Facilities Segment
Sales from tool cleaning increased due to improvement in customers’ capacity utilization. Maintenance services sales increased in Japan and overseas.
(Billions of Yen)
(Billions of Yen)
Water treatment chemicals
Water treatment facilities (services)
Water treatment facilities (hardware)
136.1128.8
12/2016 12/2017
23.3 27.4
67.5 69.6
61.3 66.5
152.1 163.5
0
90
180
12/2016 12/2017
136.1128.8
524524 462462
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
7
Overseas Sales by Region Overseas Sales by Business Segment
Water treatment chemicals
Water treatment facilities
Sales in the Water Treatment Chemicals business also increased in regions other than North America. Sales in the Water Treatment Facilities business grew due to progress with construction in large projects.
(Billions of Yen)
12/2016 12/2017 12/2016 12/2017
(Billions of Yen)
Asia North America EMEA Other
46.2 52.4 52.446.230.4
2.2
15.8
4.0
27.8
1.9
15
1.5
17.5
28.7 32.9
19.5
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
8
Capital Expenditures and Depreciation R&D Expenses
Capital expenditures(ultrapure water supply
business)
Capital expenditures(excl. ultrapure water
supply business)
DepreciationR&D expenses Percentage of net sales
3.7 3.8
2.4 2.3
0
1.5
3
0
3
6
16/12期 17/12期
(Billions of Yen) (Billions of Yen) (%)
Capital expenditures of the ultrapure water supply business made progress.
R&D expenses were more or less in line with the plan.
2.1 2.6
4.2
12.4 6.2
15.0
10.0 9.9
0
8
16
12/2016 12/2017 12/2016 12/2017
228.8 235.2
70.5 73.9
299.2 309.1
69.3 75.6
74.0 81.3
82.695.5
73.456.7
299.2 309.1
I. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2018
9
Cash, deposits and marketable
securities
Other current assets
Property, plant and equipment
Other non-current assets
Liabilities
Net assets
Assets Liabilities and Net Assets
Investment in facilities for the ultrapure water supply business exceeded depreciation, and therefore property, plant and equipment increased.
Intangible fixed assets increased, reflecting the posting of goodwill associated with making an equity-method affiliate in South Korea into a subsidiary.
(Billions of Yen) (Billions of Yen)
Mar. 31, 2017 Dec. 31, 2017 Mar. 31, 2017 Dec. 31, 2017
(+ 6.3)
(+ 7.3)
(+ 12.9)
(- 16.7)
(+ 6.5)
(+ 3.4)
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
FY ended March 2017
FY ending March 2018
Revised Projection (Jan. 31)
Year-on-Year Change
FY ending March 2018
Previous Projection (Oct. 31)
Orders 218.7 248.0 + 13.4% 238.0
Net sales 214.2 235.0 + 9.7% 230.0
Operating income 19.5 21.7 + 11.6% 21.0
Non-operating income and expenses 0.6 0 0.5
Ordinary income 20.1 21.7 + 8.1% 21.5
Extraordinary income or loss 0.4 3.4 －
Profit attributable to owners of parent 14.5 18.3 + 26.2% 15.0
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
10
The revised projection is for increased orders and sales overseas in both the Water Treatment Chemicals and the Water Treatment Facilities businesses.
With the revision to projected sales, the projection for operating income has also been revised upward.
The projection for current net profit has been revised upward due to the recording of extraordinary income during the third quarter.
Foreignexchange rate
(yen)
FY ended March 2017
FY ending March 2018Projection
USD 108.84 112.20
EUR 120.33 126.60
CNY 16.37 16.60
(Billions of Yen)
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
11
Water Treatment Chemicals
Orders
The previous projection for operating income remains in place because the effect of the revision of sales is minimal.
Due to an equity-method affiliate in South Korea becoming a subsidiary, one month of orders has been revised upward.
The projection for overseas orders has been revised upward due to the revision of the foreign exchange rate.
Operating Income
Same as above.
Sales
82.1 90.8
0
50
100
17/3期実績 18/3期 修正計画
81.9 90.7
0
50
100
17/3期実績 18/3期 修正計画
7.2 7.4
8.8 8.2
0
6
12
0
6
12
17/3期実績 18/3期 修正計画
(Billions of Yen)
89.5
7.4
8.3
89.4
Operating income margin
* □ denotes previous projections
03/2017 Actual 03/2018 Revised projection
03/2017 Actual 12/2017
03/2017 Actual 03/2018 Revised projection
03/2018 Revised projection
(Billions of Yen)
(Billions of Yen)
(%)
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
12
Water Treatment Facilities (for the electronics industry)
Orders
Operating income has been revised upward, reflecting progress in the three quarters and the revision of the sales outlook.
Orders have been revised upward in consideration of the strong demand and progress in orders in China and South Korea.
Operating Income
Sales have been revised upward, reflecting strong orders for overseas hardware and progress with construction.
Sales
10.8 11.8
14.5 13.9
0
9
18
0
9
18
17/3期実績 18/3期 修正計画
72.5 97.6
0
50
100
17/3期実績 18/3期 修正計画
74.4 84.6
0
50
100
17/3期実績 18/3期 修正計画
(Billions of Yen)
Operating income margin
* □ denotes previous projections
86.8
10.8
13.6
79.4
03/2017 Actual 03/2018 Revised projection
03/2017 Actual
03/2017 Actual 03/2018 Revised projection
03/2018 Revised projection
(%)(Billions of Yen)
(Billions of Yen)
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
13
Water Treatment Facilities (for general industries)
Orders
Operating income has been revised downward, reflecting progress in the three quarters and the revision of the sales outlook.
Projections for orders for hardware for electric power industries and hardware for general industries have been revised downward.
Operating Income
The projection for maintenance services for general industries has been revised downward, but still increasing year-on-year.
Sales
1.5 2.5
2.5
4.2
0
3
6
0
2
4
17/3期実績 18/3期 修正計画
64.2 59.6
0
35
70
17/3期実績 18/3期 修正計画
57.9 59.7
0
35
70
17/3期実績 18/3期 修正計画
(Billions of Yen)
61.7
2.8
4.6
61.2
Operating income margin * □ denotes previous projections
03/2017 Actual 03/2018 Revised projection
03/2017 Actual
03/2017 Actual 03/2018 Revised projection
03/2018 Revised projection
(Billions of Yen)
(Billions of Yen)
(%)
27.7 34.5 31.8 34.5 45.3
91.5 94.9 98.9 97.8 99.0
58.8 60.0
83.7 81.9 90.7 178.1
189.4 214.4 214.2
235.0
0
120
240
14/3期 15/3期 16/3期 17/3期 18/3期修正計画
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
14
51.8 54.4 60.6 62.6 65.4
8.1 8.3 6.3 6.4 6.6
31.6 32.2
32.0 28.8 27.0
91.5 94.9
0
50
100
14/3期 15/3期 16/3期 17/3期 18/3期修正計画
Maintenance, etc.
Tool cleaning
Ultrapure water supply
business
179.7
150.4154.9
182.6189.7
Service Business Sales in the Water Treatment Facilities Segment
Service business
sales
(Billions of Yen)
(Billions of Yen)
The projections for the overseas ultrapure water supply business and domestic maintenance services have been revised upward.
Water treatment chemicals
Water treatment facilities (services)
Water treatment facilities (hardware)* □ denotes previous projections
230.0
42.0
98.6
89.4188.0
65.2
6.6
26.8
98.6
03/2018 Revised
projection
03/201703/201603/201503/2014 03/2018 Revised
projection
03/201703/201603/201503/2014
98.9 97.8 99.0
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
15
27.2 32.1 37.8 39.9 48.6 1.8
2.0
2.4 1.9
5.4
1.3 1.6
20.7 19.8
21.4
3.3 3.5
3.0 2.6
3.2
33.6 39.1
63.9 64.2
78.5
0
40
80
14/3期 15/3期 16/3期 17/3期 18/3期修正計画
Sales in the Water Treatment Chemicals business were revised upward due to the impact of making an equity-method affiliate in South Korea into a subsidiary, and revision of foreign exchange rates.
Sales in the Water Treatment Facilities business were revised upward, reflecting growth in sales in China and South Korea.
17.7 21.8 22.7 25.732.4
15.917.3
41.2 38.5
46.1
33.639.1
63.9 64.2
78.5
0
40
80
14/3期 15/3期 16/3期 17/3期 18/3期修正計画
(Billions of Yen) (Billions of Yen)
Overseas Sales by Region Overseas Sales by Business Segment
Water treatment chemicals Water treatment facilitiesAsia North America EMEA Other
* □ denotes previous projections* □ denotes previous projections
44.329.2
5.3
21.1
3.273.9
44.7
73.9
03/2018 Revised
projection
03/201703/201603/201503/201403/2018 Revised
projection
03/201703/201603/201503/2014
II. Consolidated Business Plan for the Fiscal Year Ending March 31, 2018
16
3.0 3.0 6.7
15.8
6.3
17.3
18.8
9.3
24.0
13.4 13.2 13.0
0
12
24
Capital Expenditures and Depreciation R&D Expenses
Capital expenditures(ultrapure water supply business)
Capital expenditures(excl. ultrapure water
supply business)
DepreciationR&D expenses Percentage of net sales
5.3 5.0 5.3
2.5 2.4 2.3
0
1.5
3
0.0
3.5
7.0
16/3期 17/3期 18/3期
計画
(Billions of Yen) (Billions of Yen) (%)
03/2016 03/2017 03/2018Projection
Previous projection maintained. Previous projection maintained.
03/2016 03/2017 03/2018Projection
■U R L■
■M A I L■
http://ir.kurita.co.jp/
Forward-looking StatementsThis presentation contains forward-looking statements, business plan projections, and judgments based on information available to management at the time of writing. Due to the existence of a variety of risk factors and uncertainties, actual results may differ from those specified or implied by these forward-looking statements and projections.
