Unicharm Presentation Materials for...2012/08/07 · Corporate Consolidated Fiscal Year Ended June...

Copyright (c) 2012 Unicharm Corporation. All rights reserved.

Unicharm Presentation Materials for

Investor’s Meeting

Unicharm Corporation

Takahisa Takahara

President and CEO

Forecasts included in this Presentation are based on assumptions, prospects and plans

as of Juｌｙ 31, 2012. Actual results may differ significantly from these forecasts due to

various factors affecting the Company's business performance such as competitors’

movements and fluctuations in exchange rates.


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2

Table of Contents

1. Financial Performance Review:

Fiscal Year Ended June 30, 2012 P3

2. Operating Environment Review:

Fiscal Year Ended June 30, 2012 P13

3. Shareholder Return Policy for Year Ending

March 31, 2013 P19


1. Financial Performance Review:

Fiscal Year Ended June 30, 2012


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4

Compared to same last year period, sales and operating income achieved

all-time high - up 19.2% and 13.6% respectively.

Compared to previous year (in million yen)

Fiscal Year Ended

June 30, 2011

Fiscal Year ended

June 30, 2012

Increase

(decrease)

Increase

(decrease)

(%)

Assessment

Net sales 100,765 120,112 19,346 19.2% ○

Operating

income 13,558 13.5% 15,399 12.8% 1,840 13.6% ○

Ordinary

income 12,580 12.5% 11,981 10.0% (598) (4.8%) ×

Net income 9,196 9.1% 8,032 6.7% (1,164) (12.7%) ×


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Impact of raw

materials price

increases

（- 0.2%P）

(0.3)

5

Operating income increased 1.9bn driven by increase of gross

profit due to sales increase.

Year Ended June 30, 2011 Year Ended June 30, 2012

Increase in

sales

promotion

expenses

(2.8)

Increase

in labor

costs

(0.9)

Increase in

advertising

expenses

(0.4)

Increase in

freight and

other

related

charges

(0.3)

Other

increases

(1.6)

Impact of product

mix/productivity

(-0.5%P)

(0.6)

Increase in

gross profit due

to sales increase

of ¥19.3 billion

+9

Increase in

depreciation

expense

(0.2)

13.5 15.4

billion

yen

billion

yen


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6

Sales and Profit largely increase in Asia and Middle East and Other areas.

Asia region has become the largest source of profits.

Geographical Segment Information

Japan Asia

Europe, Middle

East and other

areas

TotalElimination/

CorporateConsolidated


　　　Net sales 56,223 34,612 9,929 100,765 ‐ 100,765　　　Operating income 7,413 5,790 404 13,608 (50) 13,558


　　　Net sales 55,871 47,310 16,930 120,112 ‐ 120,112　　　Operating income 6,500 7,861 1,057 15,419 (20) 15,399

Increase (decrease)

　　　Net sales (352) 12,697 7,000 19,347 ‐ 19,347　　　Operating income (913) 2,071 653 1,811 30 1,841

Increase (decrease) (%)

　　　Net sales (0.6%) 36.7% 70.5% 19.2% - 19.2%　　　Operating income (12.3%) 35.8% 161.4% 13.3% (58.9%) 13.6%

(in million yen)


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7

Asia region continue to sustain high profitability.

Consolidated operating margin was 12.8%.

Operating margin by Geographical Segment

8.5%

13.2%

11.7% 11.6%8.6%

9.0%12.5%

14.7%

12.5%

18.7%

16.7% 16.6%

9.1%

5.1%5.8%

2.5% 2.4% 2.4%

5.2%4.0%

4.5%

13.6% 13.5%

11.8%

7.5%

12.8%

9.0%

7.9%

0.0%

5.0%

10.0%

15.0%

20.0%

'06/6 '07/6 '08/6 '09 /6 '10 /6 '11 /6 '12 /6

Japan Asia Middle East/Europe/USA Consolidated


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8

Personal Care segment continued to maintain double digit growth.

Pet Care segment is growing rapidly by M&A.

Business Segment Information (in million yen)

Personal

CarePet Care Others Total

Elimination/

CorporateConsolidated


　　　Net sales 87,756 11,509 1,500 100,765 － 100,765　　　Operating income 12,395 1,033 124 13,552 6 13,558


　　　Net sales 100,509 18,107 1,496 120,112 － 120,112　　　Operating income 14,030 1,275 89 15,394 5 15,399

Increase (decrease)

　　　Net sales 12,753 6,597 (4) 19,347 － 19,347　　　Operating income 1,635 242 (35) 1,842 (1) 1,841

Increase (decrease) (%)

　　　Net sales 14.5% 57.3% (0.3%) 19.2% － 19.2%　　　Operating income 13.2% 23.4% (29.3%) 13.6% － 13.6%


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9

Sales contribution of overseas business reached an all-time high of

53.9% driven by the growth of Asia region.

Change in Domestic and Overseas Net Sales (in million yen)

26.8%

31.8%34.4%

39.6% 39.6%

43.4%44.6%

53.9%

23.3%

39.4%

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

'08/6 '09/6 '10/6 '11/6 '12/6

0%

10%

20%

30%

40%

50%

60%

Sales in Japan (left gauge) Sales in Asia (left gauge)

Overseas sales excluding Asia (left gauge) Sales ratio in Asia (right gauge)

Overseas sales ratio (right gauge)


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10

Sales promotion expenses increased due to strengthen marketing activities

and expansion of sales areas.

Logistics cost’s ratio decreased by optimizing the global supply chain.

Increases/Decreases in Consolidated Selling, General

and Administrative Expenses(Consolidated)

Amount

Ratio to net

sales Amount

Ratio to net

sales

Freight and other related

charges 5,316 5.3% 5,633 4.7% 317 (0 .6%P)

Sales promotion expenses 13,222 13.1% 15,975 13.4% 2,753 0.3%P

Advertising expenses 3,122 3.1% 3,528 3.0% 406 (0 .1%P)Employee salaries and

bonuses 2,666 2.6% 3,525 3.0% 859 0.4%PProvision to reserve for

bonuses 886 0.9% 912 0.8% 26 (0 .1%P)Retirement benefit

expenses 324 0.3% 380 0.4% 56 0.1%PDepreciation/amortization

expenses 262 0.3% 485 0.5% 223 0.2%P

Other expenses 7,089 7 .0% 8,738 6 .8% 1,649 (0 .2%P)

Total 32,887 32.6% 39,176 32.6% 6,289 0.0%P

Fiscal Year Ended

June 30, 2012

Fiscal Year Ended

June 30, 2011

Increase

(decrease)

Increase

(decrease)

(%)

(in million yen)


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11

Foreign exchange losses incurred due to appraisal of the parent

company subsidiary loan.

Increase (Decrease) in Non-Operating Income (Expenses) (Consolidated)

Fiscal Year

Ended June

30, 2011

Fiscal Year

Ended June

30, 2012

Amount Amount

Non-operating revenues

Interest income 198 184 (14)

Dividends income 117 132 15Others 120 111 (9)

Total 437 429 (8)Non-operating expenses

Interest expenses 96 102 6

Sales discounts1,071 1,300 229

Increase by sales

expansion

Foreign exchange losses175 2,389 2,214

Effect of the parent

company subsidiary loan

Others 71 54 (17)Total 1,415 3,847 2,432

Increase

(Decrease)Major causes

(in million yen)


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12

Structural improvement expenses occurred for improving

profitability of Australian subsidiary.

Increase (Decrease) in Extraordinary Income (Loss) (consolidated)

Fiscal Year Ended

June 30, 2011

Fiscal Year Ended

June 30, 2012

Amount Amount

Gains on sales of noncurrent assets 1 21 20

Others 0 5 5

Total 1 27 26

Loss on disposal of noncurrent assets 111 32 (79)

Loss from disasters 277 0 (277) Earthquake-related

Costs of business structure

improvement 44 28 (16)

Mainly improvements in

structure of Australian

subsidiary

Others 58 1 (57)

Total 491 62 (429)

Extraordinary income

Extraordinary loss

Increase

(decrease)Major causes

(in million yen)


2. Operating Environment Review:



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14

Recent pulp prices continue to be on an upward trend,

while naphtha prices have changed rapidly to a downward trend.

Chart of Naphtha/Pulp Price

0

300

600

900

1200

'08/

4'0

8/6'0

8/8

'08/

10

'08/

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2/6

Naphtha Pulp

(US$/ton)


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15

'07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '12/6 '13/3E

Procurement costs increased by ¥0.3 billion ended June 30.

On an annual basis, it is assumed rise of 1.2 billion.

Increase/Decrease of Raw Material Costs from Previous Year (in billion yen)

(９.3)

+７.２

+3.0

+3.2

+8.0

+5.6

+0.３ +１.２


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16

Almost all currencies suffered from Yen hike, sales and operating income

were reduced 2.2 and 0.2 billion respectively by the impact of currency

depreciation.

Impact of Exchange Rate Fluctuations (Fiscal Year Ended June 30, 2012) compared with the same period last year)

Net sales

(in million yen)

Operating

Income

(in million yen)

Previous Year

Rate

Current Year

Rate

Change in

Rate (%)

Taiwan dollar (133) (22) 2.83 2.70 (4.6%)

Baht (Thailand) (418) (90) 2.70 2.57 (4.8%)

Won (South Korea) (96) (13) 0.0737 0.0703 (4.6%)

Rupiah (Indonesia) (1,032) (177) 0.0096 0.0087 (9.4%)

Ringgit (Malaysia) (89) (11) 27.06 25.76 (4.8%)

Euro (334) (12) 112.57 103.99 (7.6%)

RMB (China) 115 22 12.50 12.57 0.6

Peso (Philippines) (2) (0) 1.90 1.86 (2.1%)

Riyal (Saudi Arabia) (116) (13) 21.82 21.41 (1.9%)

Rupee (India) (122) 83 1.85 1.50 (18.9%)

US$ (15) (1) 82.34 79.28 (3.7%)

Ruble (Russia) (30) (1) 2.82 2.64 (6.4%)

Australian Dollar 25 0 82.75 83.73 1.2%

Total (2,247) (234) ― ― ―


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8

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1.2

1.3

1.4

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12'1

2/2

'12/

4

Shop prices of disposable diapers in Asia continue to be in the

upward trend.

On the other hand,Japan have remained in the flat trend.

Disposable diaper - Changes in shop price per piece (Average of all manufacturers) China Thailand

Indonesia Japan

1,600

1,650

1,700

1,750

1,800

1,850

1,900

1,950

'10/

8

'10/

10

'10/

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1/2

'11/

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1/6

'11/

8

'11/

10

'11/

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2/2

'12/

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20

20.5

21

21.5

22

22.5

23

23.5

'10/8

'10/1

0

'10/1

2'1

1/2'1

1/4'1

1/6'1

1/8

'11/1

0

'11/1

2'1

2/2'1

2/4'1

2/6

(*) Prices in Japan include those of toilet-training pants. Source: UC Research

(Baht) (RMB)

(Rupiah) (Yen)


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18

1.6

1.8

2

2.2

2.4

2.6

2.8

3

3.2

3.4

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0.3

0.32

0.34

0.36

0.38

0.4

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0.44

0.46

0.48

0.5

0.52

0.54

'10/

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'11/

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'11/

10

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12'1

2/2

'12/

4

In case of Thailand and Indonesia, the shop prices of female

sanitary products were stable, while China continued to increase

through the introduction of value-added products.

Sanitary pads - Changes in shop price per piece (Average of all manufacturers) China Thailand

Indonesia Japan

300

350

400

450

500

550

600

'10/

8

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10

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12'1

1/2

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'12/

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8

8.2

8.4

8.6

8.8

9

9.2

9.4

9.6

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0

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1/4'1

1/6'1

1/8

'11/1

0

'11/1

2'1

2/2'1

2/4'1

2/6

(*) Including sanitary pads, liners and tampons (Source) UC Research

(RMB) (Baht)

(Rupiah) (Yen)


３. Shareholder Return Policy

for Year Ending March 31, 2013


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20

Planned dividend for FY13/3 is ¥34, ¥2 increase from FY12/3, achieving 11th

consecutive year of dividend raise

Changes in Dividends

* In year ended Mar 2001, commemorative dividends were

distributed in connection with appointment of the new CEO.

(Yen)

68 7 8 9 10 11

1518

23

28

3234

15

0

5

10

15

20

25

30

35

40

'00/3 '01/3 '02/3 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3E


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21.7%

93.9%

59.9%56.0%

64.2%

43.5%

11.8%

46.2%

58.7%

47.5%49.5%

44.7%

38.3%

55.6%50.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1997 1998 '01/3 '02/3 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '1２/3 '1３/3E0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%Dividends Company stock buy-back Profit return ratio

21

Maintaining total shareholder return of 50% through result-driven

dividend and share buy back program

Outlook for Return to Shareholders (in billion yen)


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22

Unicharm Ideals

We contribute to creating a better quality of life for everyone

by offering only the finest products and services to the

market and customers, both at home in Japan and abroad.

We strive to pursue proper corporate management

principles which combine corporate growth, associated

well-being and the fulfillment of our social responsibilities.

We bring forth the fruits of cooperation based on integrity

and harmony, by respecting the independence of the

individual and striving to promote the Five Great Pillars.


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Unicharm Presentation Materials for...2012/08/07 · Corporate Consolidated Fiscal Year Ended June...

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