consolidated business results for the fiscal 2019 bando ... · sales of large-scale conveyor belt...
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Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.
Consolidated Business Resultsfor the Fiscal 2019
Bando Chemical Industries, Ltd.May 12, 2020
Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.
Contents
Ⅰ. Financial summary for FY2019
Ⅱ. Business results forecast for FY2020
1/18
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Ⅰ. Financial summary for FY2019
2/18
Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.
FY2019 Highlights
FY2018 FY2019 FY2019 Forecast
Result ResultYear-on-year
change
Announced on
Aug 9, 2019
Revised on
Apr 24, 2020
Revenue 94,318 90,247 -4,070 93,000 90,000
Core operating
income6,503 5,252 -1,250 6,000 5,000
Operating income 6,815 2,056 -4,758 6,000 2,000
Profit before income tax 7,166 2,095 -5,071
Profit attributable to owners of parent 5,457 682 -4,774 4,500 500
(yen mil.)
3/18
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FY2019 Highlights
◼ Revenue decreased mainly in overseas area due to economic deceleration by prolonging of U.S.-China trade friction and the spread of the novel coronavirus.
◼ Core operating income decreased due to decrease in revenue and cost to sales ratio increase in existing business, despite increase in income by new consolidation of Aimedic MMT Co., Ltd. (hereinafter, “Aimedic MMT”).
◼ Operating income decreased due to temporary losses such as the impairment loss of goodwill of Aimedic MMT(-3,274 million yen)and the amendment loss of retirement benefit plan(-447 million yen).
➢ In IFRS, goodwill is tested for impairment annually. An impairment loss is recognized when recoverable amount calculated based on future cash flows is below carrying amount of assets including goodwill. We recalculated the future cash flows based on the redemption price decline of main products in Aimedic MMT over the next two years and revised new products development progress. As a result, we recorded the impairment loss for FY2019.
4/18
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209 240 243 220
FY2016 FY2017 FY2018 FY2019
FY2019 Revenue by region
Japan
Other
Asia
China
(¥100 mil.)
(Note) Revenue by region above were after inter-segment elimination.
487 491 520 516
FY2016 FY2017 FY2018 FY2019
87 91 93 89
FY2016 FY2017 FY2018 FY2019
99 88 88 77
FY2016 FY2017 FY2018 FY2019
5/18
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6,503
-838 +606 -265
-977 +223
5,252
FY2018 result Sales volume
decrease
Cost to sales
ratio decrease
(Note)
Gross profit
decrease due
to effects of
FOREX raes
SGA expense
increase
(Note)
SGA expense
decrease due
to effects of
FOREX rates
FY2019 result
(yen mil.)
FY2019 Core operating income analysis
6/18
(Note) In existing business, not including Aimedic MMT, the cost to sales ratio increased (resulted in decreased core operating income) and SGA expense decreased (resulted in increased core operating income).
Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.
FY2019 Segment performance
(yen mil.)
FY2018 FY2019
Result Result Change Rate of change
Revenue 94,318 90,247 -4,070 -4.3%
Automotive Parts 41,650 38,953 -2,697 -6.5%
Industrial Products 35,424 32,765 -2,659 -7.5%
Advance Elastomer Products 14,627 13,685 -941 -6.4%
Other 3,880 5,575 +1,694 +43.7%
Adjustments -1,264 -731 +532 -
Core operating income 6,503 5,252 -1,250 -19.2%
Automotive Parts 3,182 2,129 -1,052 -33.1%
Industrial Products 2,141 2,195 +53 +2.5%
Advance Elastomer Products 617 333 -283 -45.9%
Other 530 595 +64 +12.2%
Adjustments 31 -1 -33 -
7/18
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0
100
200
300
400
FY2018 FY2019
Automotive Parts overview
◼ In U.S., revenue decreased due to decrease in production of vehicles, despite increase in aftermarket sales.
Revenue after inter-segment elimination
(¥100 mil.)
◼ Revenue decreased due to decrease in production of main customer, despite increase in aftermarket sales by aggressive customer developments.
◼ Sales of accessory drive power transmission belts and systems decreased in Thailand.
◼ Sales of variable speed belts for scooters decreased in India.
Japan
(-8.2%)◼ Sales of accessory drive power transmission
belts and systems decreased.
Core operating income
■ Core operating income decreased due to decrease in revenue.
Other
(-2.1%)
China
(-6.8%)
Asia
(-6.4%)
Core operating income
(-33.1%)
389416
2131(¥100 mil.)
0
10
20
30
FY2018 FY20198/18
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Industrial Products overview
◼ In U.S. and Turkey, sales of industrial transmission belts decreased due to economic deceleration.
Revenue after inter-segment elimination
◼ Sales of transmission belts for agriculturalmachinery decreased mainly.
◼ Sales of transmission belts for agriculturalmachinery decreased mainly.
Japan
(-3.0%)
◼ Sales of industrial transmission belts decreased due to slowdown of machinery orders.
◼ Sales of large-scale conveyor belt and light-duty conveyor belt for logistics equipment increased.
Core operating income
◼ Dealing failures for customers occurred in the previous year, none in this year.
Other
(-5.4%)
China
(-22.6%)
Asia
(-31.9%)
Core operating income
(+2.5%)
327353
2221
0
100
200
300
FY2018 FY2019
0
10
20
FY2018 FY2019
9/18
(¥100 mil.)
(¥100 mil.)
Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.
Advance Elastomer Products overview
Revenue after inter-segment elimination
◼ Sales of films used in industrial materials and decorate materials decreased.
◼ Sales of precision belts decreased.
Core operating income
◼ Core operating income decreased due to decrease in revenue.
Precision Parts
(-8.2%)
Films
(-3.2%)
Core operating income
(-45.9%)
136
3.36.2
146
0
50
100
150
FY2018 FY2019
0
2
4
6
FY2018 FY2019
10/18
(¥100 mil.)
(¥100 mil.)
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14
1716 16
2120
17
8
12
17
14
9
222236
225 230 237245
235226
232
230 225215
0
5
10
15
20
25
0
50
100
150
200
250
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
-5
Quarterly transition of business result
FY2017 (JGAAP) FY2018(IFRS)
-5
Property tax and size-based business tax
FY2019(IFRS)
Property tax and size-based business tax
11/18
:Net sales(JGAAP)
:Operating income(JGAAP)
:Revenue(IFRS)
:Core operating income(IFRS)
Revenue(¥100 mil.)
Core operating income
(¥100 mil.)
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90
68
92
66
88
-42 -46 -50 -46
-141
49
22
42
20
-53
-150
-100
-50
0
50
100
150
FY2015
(JGAAP)
FY2016
(JGAAP)
FY2017
(IFRS)
FY2018
(IFRS)
FY2019
(IFRS)
CF from operating activities
CF from investing activities
Free CF
(¥100 mil.)
Transition of cash flow
12/18
(Notes)1. CF from operating activities for FY2016 decreased by 2.3 billion yen due to stopping liquidation of receivables.2. CF from operating activities for FY2018 decreased by 1.4 billion yen due to addressing the revision of
enforcement of “Act against Delay Payment of Subcontract Proceeds, etc. to Subcontractors.”3. CF from investing activities for FY2019 included payment for acquisition of Aimedic MMT(-9.2 billion yen.)
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0
200
400
600
800
1,000
1,200
Non-current
assets 489
Other assets 13
Inventories 129
Trade and
other receivables
217
Cash and cash
equivalents
175
Equity
681
Other liabilities
240
Debt
104
Non-current
assets 614
Other assets 13
Inventories 128
Trade and
other receivables
201
Cash and cash
equivalents
144
Equity
639
Other liabilities
249
Debt
214
1,025 1,102
<Assets>・Net payment with cash on hand for acquisiton of AImedic MMT(-3 billion yen)
・Goodwill caused by the acquisition of Aimedic MMT(+8.5 billion yen)
・Record lease assets as right-of use assets by applying IFRS 16(+2.6 billion yen)
<Equity>・Retained earnings decreased (-0.9 billion yen)
・Other components of equity decreased due to fluctuation of FOREX and stock market (-3 billion yen)
<Liabilities>・Debt increased due to the acquisition of AimedicMMT(+11 billion yen)
Consolidated Statement of Financial Position
(¥100 mil.)
FY2018 FY2019
13/18
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Financial indicators
0
2
4
6
8
10
FY2015
(JGAAP)
FY2016
(JGAAP)
FY2017
(IFRS)
FY2018
(IFRS)
FY2019
(IFRS)
4.75.3 5.0 5.3
0.6
7.98.7
8.1 8.2
1.0
ROA/ROE
ROA
ROE
0
20
40
60
FY2015
(JGAAP)
FY2016
(JGAAP)
FY2017
(IFRS)
FY2018
(IFRS)
FY2019
(IFRS)
60.4 60.5 62.9 66.257.7
Capital ratio
0.0
10.0
20.0
30.0
40.0
FY2015
(JGAAP)
FY2016
(JGAAP)
FY2017
(IFRS)
FY2018
(IFRS)
FY2019
(IFRS)
22.926.3
18.715.3
33.7
D/E ratio
△ 100
△ 50
0
50
100
FY2015
(JGAAP)
FY2016
(JGAAP)
FY2017
(IFRS)
FY2018
(IFRS)
FY2019
(IFRS)
44.2 41.0 63.3 71.3
-69.8
Net cash / Net Debt
%
%
%
¥100 mil.
14/18
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Ⅱ. Business results forecast for FY2020
15/18
Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.
FY2020 Business results forecast
16/18
◼ It is currently difficult to predict the forecast of business results for FY2020 reasonably at this stage due to the spread of the novel coronavirus.
We will announce it promptly when we can disclose reasonably forecast.
Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.
Transition of CAPEX, depreciation and R&D expenses
46 45
5247
4443 41
43 44 47
42 42 43 44 44
0
10
20
30
40
50
60
16/3 17/3 18/3 19/3 20/3FY2015 FY2016 FY2017 FY2018 FY2019
BF-2
17/18
(Notes)1. The effect of adopting IFRS 16 was not included on the above amount and graph.
The effect was an increase of capital expenditure by 1.2 billion yen, and an increase of depreciation and amortization by 1.3billion yen, respectively, for FY2019.
2. It is currently difficult to predict the amount for FY2020 at this stage.
JGAAP IFRS
Domestic capital expenditure Depreciation and amortization
Overseas capital expenditure R&D expenses (Bold, italic)(¥100 mil.)
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4,386
4,951 5,1005,457
682
1,127 1,207 1,391 1,484 1,484130
865 152475
FY2015 FY2016 FY2017 FY2018 FY2019
Profit attributable to owners parent
Purchase of treasury stock
Dividend paid
24 2630 32 32
25.7% 24.1%26.9% 26.9%
214.3%
FY2015 FY2016 FY2017 FY2018 FY2019
Annual dividend per share (yen)
Payout ratio (%)
Shareholders returns
Annual dividend per share & Payout ratio Return of profits(yen mil.)
(Notes)1. Dividend is correction value after share consolidation at a rate of two shares of common stock into one took place Oct. 1, 2016. 2. The amount from FY 2017 was under IFRS. We decided the amount of dividend paid based on JGAAP profit before FY2018.3. The amount of dividend per share will be ¥32 because we emphasized the continuity of stable dividend payments.4. It is currently difficult to predict the amount for FY 2020 at this stage.
18/18
Our basic policy is to enhance the return of profits and aim for making stable dividend
payments targeting a consolidated payout ratio 30% over the near term, while
considering our earnings and financial position.
Basic Policy