Toto fy2011 6months_results
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Transcript of Toto fy2011 6months_results
Fiscal Year 2011
First Half Result and Full Year Plan
October 31, 2011
TOTO
This notice has been translated from the original notice in Japanese.
In the event of any discrepancy, the original in Japanese shall prevail.
2
1.Financial Result for First half of FY2010
2.FY2010 Full Year Financial Plan
Contents
The Company’s income and profit increased.
Sales of new products released last year have continued to be strong.
Sales of both domestic and overseas housing equipment increased, and the Company
achieved a cost reduction that exceeded the target specified in its business plan.
[Domestic Housing Equipment Business] - Sales of new products released last year have continued to be strong, and this has greatly
contributed to the company’s increase in income and profit.
- The production and sale of products, which were disrupted by the effects of the Great East Japan
Earthquake, have returned to normal levels.
- Thanks to strong demand recovery for new housing starts after the earthquake, sales for new
housings increased by 11% compared to last year.
- Sales for remodeling decreased by 1% compared to last year. This was due to a decrease during the
first quarter that was caused by a downturn in consumer confidence that exceeded the increase
seen in the second quarter.
[Overseas Housing Equipment Business] - The Company achieved an increase in income and profit despite the increased value of the yen.
- In the United States, despite sluggish demand, the Company maintained the same level of sales as
last year on a dollar basis, but experienced a decrease of 10% compared to last year on a yen basis.
- The Company’s business in China has continued to boom, with sales increasing by 20% compared
to last year, despite concerns over a decline in economic growth due to a decrease in interest rates.
[New Domain Business] - As a result of a fall in demand, sales decreased compared to last year in both the ceramics and
environmental materials businesses. 3
2Q, FY2011 Result
■Financial Summary
2Q, FY10 YoY Difference
ResultPlan
(July 29)Result (%)
+6.6
(+3%)
+4.2
(+212%)
+4.8
(+329%)
1.4Recurring Profit
Operating Profit
6.2
Net Profit
Extraordinary Loss
4.0
-2.7
-2.2
4.0
-0.5
2Q, FY11
Net Sales 211.9
6.11.9
205.3 210.0
+5.7
+1.3-0.9
3.02.0
※Y billion, rounded down
2Q, FY2011 Result
4
achieved both sales and profit increase
■Financial result
5
0
2
4
6
8
<Operating Profit>
Domestic H.E. 0.7 5.4
(Remodeling) 2.4 4.5
(New Housing) -1.6 0.9
Overseas H.E. 3.0 3.3
New Domain -0.9 -1.3
Others -0.8 -1.3
169.1 174.0
27.6 30.7
8.3 7.0
0
50
100
150
200
250
2Q,FY10 2Q,FY11
Others
New Domain
Overseas H.E.
Domestic H.E.
205.3
New Housing
50.9
(+11%)
( )= YoY difference
(+3%)
New Domain Others
0.1
Others 0
New Housing
56.6
(+11%)
Remodeling
117.4
(-1%)
211.9
2Q,FY10 2Q,FY11
1.9
6.1
(+3%)
(-16%)
Remodeling
118.2
Increased in sales and target,
as new housing business and overseas business achieved robust growth
■Sales and profit by business segment
※Y billion, rounded down
2Q, FY2011 Result
2Q,FY10
Sales Sales YoY
(%)
Restroom Products Total 68.8 68.4 -1%
Fittings ±0%
Bathrooms +12%
Modular Kitchens/Basins +9%
Bath/Kitchen Products Total 90.7 96.2 +6%
Others Totatl 14.4 14.2 -1%
Total(Before adjustment) 174.0 178.9 +3%
Domestic H.E. Total 169.1 174.0 +3%
2Q,FY11
※2
※1
※2: Internal sales or sales transferred between different segments
※1: TOTO has corrected the second half financial results as a result of the sales and profit from Marblight products being transferred from the “Modular Kitchens/Basins” category to the “Others” category
from this fiscal year
6
■Sales per products in domestic housing equipment
2Q, FY2011 Result
※Y billion, rounded down
In Local Currency In Japanese Yen($ million, rounded down) (JPY billion)
Americas 2Q,FY10 2Q,FY11 YoY 2Q,FY10 2Q,FY11 YoY
Net Sales 97.4 96.5 -1% 8.62 7.79 -10%
Operating Profit 0.9 -2.0 - 0.08 -0.16 -
(Exchange rate JPY/US$) 88.48 80.73
(Billion Chineseyuan, rounded down) (JPY billion)
China 2Q,FY10 2Q,FY11 YoY 2Q,FY10 2Q,FY11 YoY
Net Sales 1.00 1.25 +25% 13.03 15.63 +20%
Operating Profit 0.25 0.28 +8% 3.34 3.44 +3%
(Exchange rate JPY/RMB) 13.03 12.47
($ million, rounded down) (JPY billion)
Asian & Oceanian Region 2Q,FY10 2Q,FY11 YoY 2Q,FY10 2Q,FY11 YoY
Net Sales 57.2 75.2 +31% 5.06 6.07 +20%
Operating Profit 5.2 6.0 +15% 0.46 0.48 +4%
(Exchange rate JPY/US$) 88.48 80.73
(€ million, rounded down) (JPY billion)
Europe 2Q,FY10 2Q,FY11 YoY 2Q,FY10 2Q,FY11 YoY
Net Sales 8.7 10.6 +22% 0.94 1.24 +32%
Operating Profit -7.9 -3.5 - -0.85 -0.41 -
(Exchange rate JPY/Euro) 107.81 116.84
(JPY billion)
2Q,FY10 2Q,FY11
Result Result YoY
27.67 30.75 +11%
3.03 3.34 +10%
TOTAL
7
■Sales and profit per region in Overseas housing equipment
2Q, FY2011 Result
Continue to be strong Chinese business
led the overseas business to grow in sales and profit
Positive Usual Cost Reduction +2.6 +2.7
Factors V Plan Cost Reduction +1.5 +1.2
Increase in New Housing Sales +1.8 +0.3
Increase in Overseas Sales +0.3
Others +1.8 -0.2
Negative Decrease in Remodeling Sales
Factors Increase in material price
V Plan investment -0.7
Increase in labor cost -1.7
Increase in general products/Decrease in sales price -0.2
Total
-1.5
-0.2
+2.0
2Q,FY11
Plan
+3.9
+0.2
+0.6
-1.0
-0.1
2Q,FY11
Result
-0.3
+4.2
Cost Reduction
Cause of Increase/Decrease
-0.9
+4.1
(7/29)
8
exceeded 2.2 billion yen from the plan, and achieved 4.2 billion yen of operating profit
with V plan cost reduction and other SG&A cost reduction(included in others category)
■Cause of increase/decrease of operating profit
2Q, FY2011 Result
※Y billion, rounded down
Change to the operating income target for the first half of the year
due to the effects of the earthquake
Plan for 2Q FY2011
announced on April 29
Earthquake’s effects on parts
supply
No parts available
Supply of some products stopped
Faster recovery of supply than expected
Restoration of the supply system Full operation
Remodeling Decrease in consumer confidence Strong demand immediately after supply starts Recovery of demand
(Sales: -4% in Q1 to +2% in Q2)
New housing No parts available and operations
shutdown Quick start of operations and strong demand
Steady recovery In particular, an increase of 5% in
operating income in new house construction
V Plan Delays in progress due to stop of supply Progress in V Plan for production thanks to
the quick supply recovery
Increase in volume in accordance with
the demand recovery
Overseas Slight increase due to yen appreciation
and weak market demand
Slight increase due to yen appreciation and
weak market demand (no revision)
Slight increase due to yen appreciation
and weak market demand (no revision)
9
Fiscal Year 2011: Second Quarter Results
-1.5 billion 0
Plan for 2Q FY2011
announced on July 29
Results for 2Q FY2011
+5.5 billion yen
+2.1 billion yen
4.0 billion
6.1 billion
10
1.Financial Result for First half of FY2010
2.FY2010 Full Year Financial Plan
Contents
The Company plans to increase income and profit.
Addition to the recovery of domestic new housing market,
the Company will also accelerate cost reductions.
[Domestic Housing Equipment Business] - Although the impact of new products released last year has weakened, the Company plans to
increase income and profit by increasing demand and enhancing sales measures.
- New housing sales are expected to increase by 10% due to a strong demand (8% increase in the
second half) for new houses.
- The Company plans to increase remodeling sales by 3% annually, 6% in the second half
through demand creation activities using showrooms.
[Overseas Housing Equipment Business] - The Company plans to increase income and profit despite the increased value of the yen.
- The Company also plans to greatly increase sales in China and other Asian countries.
- Although there are no signs of an upturn in demand in the United States or Europe,
the Company will enhance sales network for future.
[New Domain Business] - In the environmental construction materials business, the Company plans to increase profit by
accelerating its overseas development.
11
FY2011 Plan
■Financial Summary
FY10 YoY
Result Former Plan Revised Plan (%)
+26.5
(+6%)
+6.0
(+43%)
+6.7
(+48%)
FY11
-5.7 -1.0
13.0+6.9
(+135%)
+1.9
Net Sales 460.0
20.014.0
455.0
17.5
433.5
Recurring Profit
Net Profit
Extraordinary Loss -3.8
12.0
Operating Profit
20.518.013.8
5.1
12
Plan drastic increase in profit
with the strong demand, sales promotion, and cost reduction
FY2011 Plan
■Financial result ※Y billion, rounded down
361.0 373.1 378.8
55.7 65.0 65.016.5
16.7 16.0
0
100
200
300
400
500
Others
New Domain
Overseas H.E.
Domestic H.E.
0.0
4.0
8.0
12.0
16.0
20.0
Domestic H.E. 11.0 13.9 17.1
(Remodeling) 11.5 13.2 14.4
(New Housing) -0.5 0.7 2.7
Overseas D.E. 7.2 8.4 8.0
New Domain -2.1 -2.0 -2.5
Others -2.1 -2.8 -2.6
433.5 455.0
New Housing
113.0
(+17%)
New Housing
117.1
(+4%)
Remodeling
256.0
(+3%)
Others 0.2
New Domain New Domain
New Housing
123.8
(+10%)
Remodeling
255.0
(+3%)
460.0
FY10 Result
FY11 Plan
FY11 Plan
(Jul.29)
14.0 17.5
20.0
810 thousands 830 thousands (+2%) 840 thousands (+4%) …New housing starts (Jan-Dec)
800 thousands 830 thousands (+3%) 830 thousands (+3%) …New housing starts on delivery base
(+5%)
(+1%)
Remodeling
248.0
FY10
Result
FY11
Former Plan(Jul 29)
FY11
Revised Plan
<Operating Profit>
(+0.4%)
(+17%)
New Domain
16.0
13
Revised domestic new housing sales target
as revision of forecast in domestic new housing starts
FY2011 Plan
■Sales and profit by business segment ※Y billion, rounded down
( )= YoY difference
Others 0.2
Others 0.2 (-3%)
FY10
Sales Sales YoY
(%)
Restroom Products Total 143.4 148.0 +3%
Fittings +1%
Bathrooms +11%
Modular Kitchens/Basins +5%
Bath/Kitchen Products Total 192.8 203.5 +6%
Others Total 34.5 36.5 +6%
Total (Before adjustment) 370.8 388.0 +5%
Domestic H.E. Total 361.0 378.8 +5%
FY11 Plan
※2
※1
14
FY2011 Plan
■Sales per products in domestic housing equipment
※Y billion, rounded down
※2: Internal sales or sales transferred between different segments
※1: TOTO has corrected the FY10 financial results as a result of the sales and profit from Marblight products being transferred from the “Modular Kitchens/Basins” category to the “Others” category
from this fiscal year
15
Sales increase slightly but profit decrease in Americas
as there are no signs of an upturn in demand.
In China, launch of new plant in Shanghai is going well and
plan continuous increase in sales and profit
FY2011 Plan
■Sales and profit per region in Overseas housing equipment
In Local Currency In Japanese Yen($ million, rounded down) (JPY billion)
Americas FY10 FY11 FY10 FY11
Result Plan YoY Result Plan YoY
Net Sales 194.9 201.3 +3% 15.88 15.50 -2%
Operating Profit 3.5 -4.6 - 0.29 -0.35 -
(Exchange rate JPY/US$) 81.49 77.00
(Billion Chineseyuan, rounded down) (JPY billion)
China FY10 FY11 FY10 FY11
Result Plan YoY Result Plan YoY
Net Sales 2.25 2.76 +22% 27.73 33.10 +19%
Operating Profit 0.62 0.65 +6% 7.62 7.85 +3%
(Exchange rate JPY/RMB) 12.30 12.00
($ million, rounded down) (JPY billion)
Asian & Oceanian Region FY10 FY11 FY10 FY11
Result Plan YoY Result Plan YoY
Net Sales 127.6 181.8 +43% 10.40 14.00 +35%
Operating Profit 14.9 15.6 +5% 1.22 1.20 -2%
(Exchange rate JPY/US$) 81.49 77.00
(€ million, rounded down) (JPY billion)
Europe FY10 FY11 FY10 FY11
Result Plan YoY Result Plan YoY
Net Sales 16.0 21.8 +37% 1.72 2.40 +40%
Operating Profit -17.0 -6.4 - -1.83 -0.70 -
(Exchange rate JPY/Euro) 107.90 110.00
(JPY billion)
FY10 FY11
Result Plan YoY
55.73 65.00 +17%
7.29 8.00 +10%
TOTAL
Positive Usual cost reduction +4.6 +4.6
Factors V Plan cost reduction +3.4 +2.6
Increase in Remodeling sales +2.4 +2.8
Increase in New housing sales +3.4
Increase in Overseas sales +0.8 +1.1
Negative Increase in material prices
Factors V Plan investment
Increase in labor costIncrease in general products/Decrease in sales price
Others
Total +3.5
-2.6
-2.3
-2.2
-0.4
-1.3
FY11
Revised Plan
FY11
Former
Plan
+7.2
+1.2
Cost Reduction
Cause of Increase/Decrease
-2.5
-3.4
-0.6
-0.3
+6.0
+8.0
-1.8
(7/29)
16
Plan 6.0 billion yen of increase in operating profit by increase of sales and cost reduction
FY2011 Plan
■Cause of increase/decrease of operating profit
※Y billion, rounded down
Increasing income by increasing profits:
- Increase in Remodeling sales … YoY increase of 6%
Increase in demand (YoY increase of 4% expected for the second half in the remodeling business)
Generation of demand through showroom events (enhancement of customer information services on fairs)
- Increase in New housing sales … YoY increase of 8%
Increase in demand (YoY increase of 7% in housing demand )
Enhancement of proposal services for housing companies
12.1 billion yen
13.9 billion yen
Result for 2H
FY2010
Operating income plan for the second half of Fiscal Year 2011
17
Note: Changes in the cost rate
Since the start of V Plan 2017, we have been
working to reduce cost so as to develop a corporate
base that can generate profits.
Plan for 2H
FY2011
It has been a year since the last time we released new large-size products. We will achieve the financial plan goals for the second half of Fiscal Year 2011 by implementing
measures to increase profits and to reduce costs.
Operating income plan for 2Q, FY11
Despite a decrease in profit from the release of new products, we will achieve the plan’s goals, namely, to increase income for the second half of the fiscal year by increasing profits and decreasing costs.
Replacement rate of major products released in August 2010
Financial Plan for Fiscal Year 2011
2H FY2010
2H FY2011
Sanitary
ware 55% 100%
Bathroom 70% 100%
Kitchen 40% 100%
- Increase in the replacement rate of new products and increase in sales
Increase in the replacement rate of products released in August 2010
Enhancement of proposal services for products to be released in February 2012
- Increase in Overseas business sales
… YoY increase of 22X%
Strong demand in Asia, including China
Increase in profits through the further promotion of the V Plan:
- Cost reduction through reorganization of logistics process
Reduction by 350 million yen through distribution network reorganization, etc.
FY09 FY10 FY10
Ratio of cost to sales 65.3% 63.0% 62.7%
FY10 FY11
1H ¥5.0 ¥5.0
2H ¥5.0 ¥5.0
Full Year ¥10.0 ¥10.0
18
■Dividend
Plan 5 yen in the second half, and 10 yen in the full year
FY2011 Plan
This presentation material contains forward-looking statements based on
assumptions, estimates and plans as of October 31, 2011.
Actual performance may differ materially from these forward-looking statements
due to risks and undermined factors arising from changes in the world economy,
competition and foreign currency exchange rates.