fiscal year ended december 31, 2014 unicharm presentation ......oct-dec 3q jan-mar 4q apr-jun 1q...
TRANSCRIPT
Copyright (c) 2012 Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
February 12, 2015
Takahisa Takahara
President and CEO
Unicharm Corporation
Projections stated herein include those based on the Company’s assumptions, forecasts and plans
as of February 12, 2015. Therefore, actual results may differ significantly from projections due to
risks and uncertainties associated with market competition, foreign exchange rates, etc.
Fiscal Year Ended December 31, 2014
Unicharm Presentation Materials for Investor Meeting
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
To 10% of Global Market share
2
Market share 2014 (compared to 2011)
World No.3 9.2% (+1.1%)
Asia No.1 25.2% (+1.4%)
Accelerate growth utilizing strength of No.1 position in Asia
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 3
Winning high share in each category
Baby Care 2014 (compared to 2011)
World No.3 9.1% (+0.9%)
Asia No.1 25.2% (+0.7%)
Feminine Care 2014 (compared to 2011)
World No.3 8.9% (+1.4%)
Asia No.1 21.6% (+1.9%)
Health Care 2014 (compared to 2011)
World No.3 10.4% (+1.4%)
Asia No.1 34.8% (+1.5%)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 4
Highly rated by 14,000 Japanese mothers!
Moony Series wins Best Mother Award!!
Copyright (c) 2012 Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
Financial Performance Summary:
Fiscal Year Ended December 31, 2014
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
2013 2014
Jan-Mar Apr-Jun
1Q
Jul-Sep
2Q
Oct-Dec
3Q
Jan-Mar
4Q
Apr-Jun
1Q
Jul-Sep
2Q
Oct-Dec
3Q
Companies with
fiscal year ending
March
Companies with
fiscal year ending
December
Change closing date of fiscal year from March 31 to December 31 to standardize the fiscal year
for all consolidated subsidiaries
6
①Consolidated FY Ended December 31, 2014. (Afterward: “Financial report basis”) ◆Companies with fiscal year ending March: Apr-Dec 2014
◆Companies with fiscal year ending December: Jan-Dec 2014
②Consolidated fiscal year for comparison of pro forma amount. (Afterward: “Adjusted basis” Compared boxes in red)
◆2013: Jan-Dec 2013 ◆2014: Jan-Dec 2014
2013 2014
Jan-Mar Apr-Jun
1Q
Jul-Sep
2Q
Oct-Dec
3Q
Jan-Mar
4Q
Apr-Jun
1Q
Jul-Sep
2Q
Oct-Dec
3Q
Companies with
fiscal year ending
March
Companies with
fiscal year ending
December
Twelve
months
Twelve
months
Nine
months
Twelve
months
Twelve
months
Twelve
months
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
【Consolidated】 Year-on-Year Comparison (Financial report basis)
FY Ended
Dec. 31, 2014
FY Ended
Mar. 31, 2014 Difference※
Difference
(%)※
Net sales 553,661 599,455 ー ー
Operating income Operating income margin
61,347
11.1%
67,240
11.2%
ー
ー
Ordinary income Ordinary income margin
65,527
11.8%
67,913
11.3%
ー
ー
Net income
EPS (Yen)
32,731
54.33
38,216
64.10
ー
ー
7
(Millions of yen)
※ Difference is not indicated due to irregular closing account for this consolidated fiscal year.
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Actual operating income margin reached 11.6%
excluding special factors
FY Ended
Dec. 31, 2014
FY Ended
Mar. 31, 2014 Difference
Difference
(%)
Net sales 553,661 599,455 ー ー
Operating income Operating income margin
61,347
11.1%
67,240
11.2%
ー
ー
8
Year-on-Year Comparison (Financial report basis) (Millions of yen)
Actual operating income 64,593
Actual operating income margin
Special factor (Reduced operating income)
Relation of changing
fiscal year 1) 1,496 Effect of synchronizing the accounting period
External factor 2) 1,750 Retroaction of last-minute demand due to increasing consumption tax
(Millions of yen)
11.6%
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
Segment Information (Financial report basis)
9
Personal
CarePet Care Others Total
Elimination/
CompanywideConsolidated
FY Ended Mar. 31, 2014
Net sales 515,253 78,672 5,530 599,455 - 599,455
Operating income 65,732 1,130 355 67,217 22 67,240
FY Ended Dec. 31, 2014
Net sales 486,960 62,564 4,136 553,661 - 553,661
Operating income 58,262 2,810 253 61,327 20 61,347
Japan Asia Others TotalElimination/
CompanywideConsolidated
FY Ended Mar. 31, 2014
Net sales 255,767 256,253 87,435 599,455 - 599,455
Operating income 35,316 31,548 481 67,345 -105 67,240
FY Ended Dec. 31, 2014
Net sales 198,745 272,904 82,011 553,661 - 553,661
Operating income 27,151 32,729 1,520 61,401 -54 61,347
(Millions of yen) Business Segment Information (Financial report basis)
Geographical Segment Information (Financial report basis)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
23.0%26.9%
31.4%
49.3%
36.9% 37.1% 38.5%42.4%
46.9%
52.6%
64.4%
42.8%38.2%
33.9%
21.5%
57.7%
0
100
200
300
400
500
600
700
800
900
'08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12
0%
10%
20%
30%
40%
50%
60%
70%
Sales in Japan (left axis) Sales in Asia (left axis) Overseas sales excluding Asia (left axis)
Sales composition in Asia (right axis) Overseas sales composition (right axis)
Overseas sales composition reached 64.4% driven by steady increasing sales composition in Asia (Adjusted basis 60.5%)
Changes in Japan and Overseas Net Sales (Financial report basis)
10
(Billions of yen)
※Due to changes in the accounting period, the consolidated fiscal year under review is an irregular settlement of accounts.
※
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 11
Executed aggressive marketing investments focused on Asia Actual consolidated operating income margin reached 11.6% excluding special factors of changing fiscal year, etc.
Actual operating income margin by geographical segment (After considering special factors)
4.1%
0.5%
1.9%
13.3% 13.0%
11.6%
13.8%
10.5%11.0%
12.8%
14.2%14.0%
15.5% 15.1%
13.6%
12.3%12.4%
11.7% 12.5%
3.2%
1.5%
7.4%
5.9%
2.6%
12.1% 12.0%
12.4%
9.9%
11.2%
12.6%
10.0%
11.6%
0.0%
5.0%
10.0%
15.0%
20.0%
'08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12
Japan Asia Other Consolidated
Copyright (c) 2012 Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
Financial Results Review:
Fiscal Year Ended December 31, 2014
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
Double-digit growth in both net sales and operating income
FY Ended
Dec. 31, 2014 (Adjusted basis)
FY Ended
Dec. 31, 2013 (Adjusted basis)
Difference Difference
(%) Note
Net sales 666,258 580,400 85,857 14.8%
Operating income Operating income
margin
76,227
11.4%
62,823
10.8%
13,404
21.3%
13
※ Financial results after adjustment are management accounting basis.
Year-on-Year Comparison (Adjusted basis※ ’14/1 – ’14/12 vs ’13/1 – ’13/12)
(Millions of yen)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
Pet care business expand Japan sales of high unit price products, while last year’s restructuring sees results improve overseas
Personal
CarePet Care Others Total
Elimination/
CompanywideConsolidated
FY Ended Dec. 31, 2013
Net sales 496,877 76,744 5,394 580,400 - 580,400
Operating income 61,671 737 415 62,823 - 62,823
FY Ended Dec. 31, 2014
Net sales 579,360 81,377 5,521 666,258 - 666,258
Operating income 72,992 2,885 349 76,227 - 76,227
Difference
Net sales 82,483 4,633 127 85,858 - 85,858
Operating income 11,321 2,148 -66 13,404 - 13,404
Difference (%)
Net sales 16.6% 6.0% 2.4% 14.8% - 14.8%
Operating income 18.4% 291.5% -15.9% 21.3% - 21.3%
17
Business Segment Information (Adjusted basis ’14/1 – ’14/12 vs ’13/1 – ’13/12)
(Millions of yen)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
Operating income improves with continual high added-value proposals focused on the baby care business in Japan
Japan Asia Others TotalElimination/
CompanywideConsolidated
FY Ended Dec. 31, 2013
Net sales 244,967 247,740 87,693 580,400 - 580,400
Operating income 31,133 32,535 1,811 65,479 -2,656 62,823
FY Ended Dec. 31, 2014
Net sales 262,897 305,575 97,786 666,258 - 666,258
Operating income 36,723 39,232 2,421 78,376 -2,149 76,227
Difference
Net sales 17,930 57,835 10,093 85,858 - 85,858
Operating income 5,590 6,697 610 12,897 507 13,404
Difference (%)
Net sales 7.3% 23.3% 11.5% 14.8% - 14.8%
Operating income 18.0% 20.6% 33.7% 19.7% -19.1% 21.3%
18
Geographical Segment Information (Adjusted basis ’14/1-’14/12 vs ’13/1-’13/12)
(Millions of yen)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
Impact on sales and operating income due to exchange fluctuation (Adjusted basis) Net sales increased approx. ¥18.0 billion year-on-year, while operating income decreased approx. ¥3.0 billion
Currency Exchange rate for
FY2014
Exchange rate for
FY2013 Change in rate
Taiwan (TWD) 3.50 3.29 +6.4%
Thailand (THB) 3.27 3.18 +2.8%
South Korea (KRW) 0.1009 0.095 +6.2%
Indonesia (IDR) 0.00900 0.00894 +0.7%
Malaysia (MYR) 32.35 31.01 +4.3%
Netherlands (EUR) 140.39 129.68 +8.3%
China (CNY) 17.23 15.90 +8.4%
Philippines (PHP) 2.41 2.32 +3.9%
Saudi Arabia (SAR) 28.31 26.08 +8.6%
India (INR) 1.75 1.69 +3.6%
USA (USD) 106.01 97.65 +8.6%
Russia (RUR) 2.79 3.07 -9.1%
Australia (AUD) 95.52 94.39 +1.2%
Vietnam (VND) 0.0050 0.0046 +8.7%
19
Copyright (c) 2012 Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
Financial Results Forecasts for
Fiscal Year Ending December 31, 2015
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 21
Double digit growth in sales and profit and expect actual record-high results in the fiscal year ending December 31, 2015
Fiscal year ending
Dec. 31, 2015
Fiscal year ended
Dec. 31, 2014 Adjusted basis
Difference Difference
(%)
Net sales 760,000 666,258 93,742 14.1%
Operating income
Operating income margin
86,000
11.3%
76,227
11.4% 9,773 12.8%
Ordinary income
Ordinary income margin
80,000
10.5%
79,742
12.0% 258 0.3%
Net income
Net income margin
44,000
5.8%
42,321
6.4% 1,679 4.0%
(Millions of yen)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 22
Foreign exchange rate sensitivity to 1% depreciation of the yen
vis-à-vis local currencies increases net sales and operating
income approx. ¥5 billion and ¥500 million, respectively
Currency Assumed rate for FY
ending Dec 31, 2015
Impact of a 1% change (depreciation of yen) (Millions of yen)
Net sales Operating income
Consolidated Total 5,000 500
Taiwan (TWD) 3.67
Thailand (THB) 3.54
South Korea (KRW) 0.1060
Indonesia (IDR) 0.0091
Malaysia (MYR) 31.81
Netherlands (EUR) 130.66
China (CNY) 18.50
Saudi Arabia (SAR) 30.67
India (INR) 1.87
USA (USD) 115.00
Australia (AUD) 92.43
Vietnam (VND) 0.0052
*Cost of imported raw materials: 1% depreciation of the yen vis-à-vis U.S. dollar increases costs by about ¥100-200 million.
Copyright (c) 2012 Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
Overview: Corporate Strategy
(Information and data noted here is from Unicharm)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
0 200,000
Japan
China
India
Indonesia
Thailand
Viet Nam
2015 2020 2030
200
In Asia, low usage ratio of disposable diapers and sanitary products and faster progression of population aging than in Japan
24
100%
21%
3%
41%
52%
26%
0%
50%
100%
-
500
1,000
1,500
2,000
2,500
2015 出生数
紙おむつ使用率(日本=100%)
1.0X
17.0X
22.9X
4.3X
0.6X 1.3X
100%
71%
15%
34%
53%
25%
0%
50%
100%
-
100,000
200,000
300,000
400,000
500,000
2015 生理人口数
生理用品 使用率(日本=100%)
500
300
400
200
100
13.9X 13.5X
2.7X
0.7X 1.0X 1.0X
Number of births and usage ratio of
disposable diapers
Population of menstruating females
and usage ratio of sanitary products
1.1X
1.8X
1.7X
2.0X
1.9X
2.1X
Number of elderly persons
(aged 65 years and above)
(Million
people)
2015 Number of births
Usage ratio of disposable diapers
(Japan=100%)
(Million
people)
2015 Population of menstruating females
Usage ratio of sanitary products
(Japan=100%)
2015 → 2030
(Million
people)
25
20
15
10
5
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
Focus on changes in the environment by closely following the situation on site and build an organizational structure for the speedier implementation of strategies
25
Promoting LMU (Local Management Units)
Strengthening the structure for facilitating local production for local consumption
Aggressively introducing Japanese technology and brands
Actively investing in personnel and delegating authority
Realizing swift decision
making in response to
changes in the environment
Bolstering the supply chain
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
2013(12ヶ月) 2014(9ヶ月) 2013(1-12) 2014(1-12)2013(1-12) 2014(1-12)
Retail
Sales
Hospital use
26
Japan
Baby Care (BC)
1.0X 1.10X
1.0X
1.63X
■Net sales (over previous fiscal year)
■Operating income (over previous fiscal year)
■Inbound effects (Net sales, over previous fiscal year)
Strengthen brand power with continual new value proposals Substantially improve profitability by
responding to changes in the environment
1.0X
3.2X
• Assurance of Japanese quality
• Number of foreign tourists to
Japan in 2014: 13.41 million
people (+30%)
• Relaxation of visa issue
requirements for China and 5
countries in Southeast Asia
• Weaker yen
• Increase in point-of-sale outlets
for export goods
• Increase in traffic of low-cost
carriers (LCC)
New proposals for low-birth-weight infants Launch as hospital-use products
Extremely low-birth-
weight infants (ELBW)
- 1,000g
Approx. 3,000
infants/year
Very low-birth-weight
infants (VLBW)
1,000g to 1,500g
Approx. 5,000 infants/year
Low-birth-weight infants
(LBW)
1,500g to 2,500g
Approx. 91,000
infants/year For
newborns Small size
(3S)
4S 5S
SS→S→M→L→Big
2013 (12 months) 2014 (9 months)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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0
50
100
2013/4 2014/3 2014/12
2013(4-12) 2014(4-12)
0
10
20
30
40
50
60
2012/12 2013/12 2014/12
27
Japan
Health Care (HC)
No.1 53.6% Share
Competitor A 14.2%
Competitor B 9.5%
Competitor A 14.8%
Competitor B 8.7%
■ Retail market
Create a new segment centering on light incontinence market, and help realize
a society of good health and long life
Light adult incontinence market
No.1 63.2% Share
■Male light incontinence market
No.1 0%→72.8% Share
Competitor A 20.9%
Competitor A 86.8%
Competitor B 4.4%
Competitor C 1.7%
Market scale
1.0X
2.9X
Launched in
April 2014
0
20
40
60
2012/12 2013/12 2014/12
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 28
Pet Care (PC)
Japan
No.1 share in all market entry categories
PC market Food market Toiletry market
0
5
10
15
20
25
2013/12 2014/12
No.1 21.4% Share
No.1 16.1% Share
No.1 42.0% Share
5
10
15
2013/12 2014/12
Competitor A 12.5%
Competitor A 15.7%
Competitor A
14.2% Competitor B 7.5%
Competitor C 6.6%
Competitor B 9.5%
Competitor C 8.3%
Competitor B
6.3%
Competitor C
5.7% 0
10
20
30
40
2013/12 2014/12
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 2012 2013 201429
Japan
Food market Toiletry market
Kg unit (sales price) over previous
fiscal year (tax excluded)
106 107 112
100
105
110
競合A 市場平均 UC
(%)
< <
Dog food best market
No.1 44.7% (+2.7%)
Share
Actively cultivate new markets
October 2001
Launch of disposable
diapers for pets
October 2011
Launch of disposable
diapers for male dogs
October 2014
Launch of
manner wear
Change in net sales
1.0X
1.27X
1.67X
Promote best practices and raise the market unit price
Cultivate new markets for revitalization
Competitor A 14.8%
Competitor A Average Market Price
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
2008 2009 2010 2011 2012 2013 2014(1-12)
30
Taiwan
Health Care (HC)
Retail market ■Horizontal roll-out of Japanese-style care model
Explaining the features and usage of a Japanese-style care model by professional care advisors
Bringing smiles to care workers and receivers
5
15
25
35
45
55
2012/12 2013/12 2014/12
Changes in net sales
No.1 55.8% Share
Competitor A 21.9%
Competitor B 15.9%
1.0X
3.4X CAGR 22%
Cultivate markets through actively raising awareness in communities with
aging population
(Local currency base)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 31
Baby Care (BC)
China
Growth in high value-added products in urban markets
Expansion of EC and specialty stores in sales channels
■ By market category, change in proportion Expanding proportion of high unit price,
high value-added products as urban
markets grow
Sharp increase in the use of premium
products and pants-type diapers due to
the spread of a relaxed approach to
child care by mothers from the 1985 era.
Growing need for safe and high-quality
Japanese products
Ongoing rapid Yen depreciation/Yuan
appreciation
Continued expansion in the proportion
of EC and Baby specialty stores in
sales channels
Proportion of EC and Baby specialty
stores;
13 5
26 17
49
40
3 13
8 11
1 14
2010 2014
パンツ
輸入品
プレミアム
スタンダード
エコノミー
パッド
29 18
32
21
26
31
14 32
2011 2014
EC
Baby専門店
トラディショナル
モダン
■ By market and sales channels, change in proportion
2011: 40% → 2014: 63%
Pants
Imported products
Premium
Standard
Economy
Pad
Baby specialty stores
EC
Modern
Traditional
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 2013 2014 2013 2014
2013 20142013 2014
1.0X
1.66X
1.0X
1.61X
Market growth UC Sales growth ■Change in import volume of Japanese products
■ Change in net sales of pants-type diapers
32
Baby Care (BC)
China
Develop products that meet market needs, and lead the market by focusing on
EC channels
Market EC growth UC EC Sales growth
Premium products sales
Redesign the brand image
Bolster sales of Japanese products
Strengthen EC channels
2013 2014
(Local currency base)
2013 2014
1.0X 1.06X 1.0X 1.10X
1.0X
1.25X
1.0X
1.74X
(Local currency base)
(Local currency base) (Local currency base)
(Local currency base) (Local currency base)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 2013 2014
(Local currency base)
15
25
2012/12 2013/12 2014/12
0
10
20
30
40
2012/12 2013/12 2014/125
15
25
2012/12 2013/12 2014/12
2013 2014
(Local currency base)
33
Feminine Care (FC)
No.2 17.0%
China
Implement premium marketing also in regional towns and cities
Increase market share by raising brand recognition
All market share
Competitor A 24.6%
Competitor B 11.3%
Shanghai City share
■ CD cities (regional towns and cities) share ■ Net sales (over previous fiscal year)
■ Operating income (over previous fiscal year)
No.1 22.1%
Competitor A 21.3%
Competitor C 19.1%
Competitor B 20.6%
Competitor A 10.5%
No.1 37.1%
1.0X
1.30X
1.0X
1.21X
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
0
50
2012/12 2013/12 2014/12
34
Indonesia
Continue high growth and strengthen regional supply to become even
more dominant in the market
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(Local currency base)
Baby Care (BC)
Past 10 years Changes in net sales
1.0X
30.1X
CAGR 46%
All market share
Competitor B 8.2%
Competitor A 16.3%
No.1 66.1%
Regional towns and cities Surabaya share
No.1 71.3%
0
50
2012/11 2013/11 2014/11
Competitor B 8.3%
Competitor A 10.0%
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
0
25
50
75
2012/12 2013/11 2014/11
5
15
25
35
2012/12 2013/12 2014/1235
Indonesia
Feminine Care (FC)
No.1 38.8% Share
Competitor B 11.6%
Competitor A 35.7%
High value-added products bring FC share close to 40%
HC share expanding as pants-type diaper usage increases
Health Care (HC)
No.3→No.1 8.4%→35.4% (2012/12) (2014/11)
Competitor B
8.4% →1.8%
Competitor A
77.7% → 26.1%
Share
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
10
20
30
40
50
60
2012/12 2013/12 2014/12
売上 営業利益 (Local currency base)
36
Baby Care (BC)
India
Competitor B 16.4%
Competitor A 54.1%
All India share
No.2 26.6% Share
Achieved record-high share in All India Continue high growth and aim for surplus from 2016
2012 2013 2014
(1-12)
2015E 2016E
CAGR 74%
0
■Net sales Operating income
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
22%
33%
48%
0%
10%
20%
30%
40%
50%
2012/12 2013/12 2014/12
パンツ化比率
33%→ 48% 37
Baby Care (BC)
India
No.1 50.1% Share
Delhi City Changes in proportion of share and pants-type diaper usage
Competitor A 30.2%
Competitor B 14.7%
Achieved top share in Delhi by initiating the use of baby pants-type diapers
Progression of pants-type diaper usage strategy
Proportion of pants-type diaper usage
1-diaper pack
Price-setting reflecting economic
level
Unbeatable high quality
Improving customer acquisition
through sales of XS-size pants
Proportion of pants-type diaper usage
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 38
Plant No.1
Plant No.2
Scheduled for
2015 H1 Operation
India
Neemrana City
Sri City
Pursuing further expansion by strengthening supply system with the construction of a
second factory in Southern India
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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B=255
Copyright (c) Unicharm Corporation. All rights reserved.
5
25
45
2012/12 2013/12 2014/12
0
20
40
60
2012/12 2013/12 2014/1239
Baby Care (BC)
No.1 58.3% Share
Feminine Care (FC)
No.1 50.6% Share
Thailand
Competitor B 6.5%
Competitor A 30.1%
Competitor B 10.4%
Competitor A 36.5%
BC meets markets needs and enjoys steady growth FC achieves 50% market share
with high added value
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
20
40
2012/11 2013/11 2014/11
10
20
30
40
50
2012/11 2013/11 2014/11
No.1 40.8%
40
Vietnam
Baby Care (BC)
Share
Competitor B 18.0%
Competitor A 34.4%
Feminine Care (FC)
No.2 43.2% Share
Competitor A 44.9%
BC expanding through active promotion of baby pants-type diaper usage
FC almost reaches No.1 from strengthening of high value-added products
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 41
Baby care (BC)
No.1 64% Share
Competitor B 10.0%
Competitor A 10.0%
Feminine care (FC)
No.1 54% Share
Myanmar
Competitor B 7.0%
Competitor A 7.0%
Competitor C 8.0% Competitor C 5.0%
BC continues expansion and remains undisputed No.1
FC to enjoy further growth backed by formidable brand power
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
Rolled out since 2011 High growth of CAGR 40%
2011 2012 2013 2014
2008 2009 2010 2011 2012 2013 201442
Saudi Arabia
Change in net sales
1.0X
2.50X
CAGR 16% 2008 2009 2010 2011 2012 2013 2014
2008 2009 2010 2011 2012 2013 2014
Overall business Baby Care (BC)
Feminine Care (FC)
Health Care (HC)
(Local currency base) (Local currency base)
(Local currency base)
(Local currency base)
1.0X
1.0X
1.0X
2.60X
8.58X
2.72X
Steady growth amid uncertain conditions Expanding market share even in
new segments
Domestic share No.2 30%↑ Increase in imports to nearby countries
Strengthening our brand by investing more in TV commercials, etc.
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 43
U.S.
Focus on growth segments (Changes in proportion of net sales)
2010 (before acquisition) 2014
1. Snacks 31%
2. Flea and tick controls 30%
3. Toys 12%
4. Dog Pads 10%
5. Birds and small animals 9%
1. Flea and tick controls 29%
2. Dog Pads 16%
3. Snacks 13%
4. Birds and small animals 10%
5. Toys 9%
6. Snacks 13%
7. Small birds 9%
8. Toys 9%
Changes in share
Flea and tick market Dog Pad market
10
15
20
25
30
35
2012 2013 2014
No.1 32.1% (+1.2%) No.1 21.8% (+14.7%)
2012 →
Competitor A 20.4%
Competitor B 17.1%
Competitor A
20.1%
Competitor B 4.0%
Competitor A
52.8%
Raising profitability by improving our portfolio
Renewed Dog Pad secures No.1 share
2012→
0
10
20
30
40
50
2012 2013 2014
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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B=0
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Copyright (c) Unicharm Corporation. All rights reserved.
13.9
17.4
13.0
17.2
11.5 11.5
0
5
10
15
20
2010/3 2011/3 2012/3 2013/3 2014/3 2014/12
ROE
2.6
5.6
13.6
15.7
20.9
14.8
0
5
10
15
20
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2010/3 2011/3 2012/3 2013/3 2014/3 2014/12
Net sales, Sales growth rate
売上高 売上成長率
(%)
12.6 12.4 12.1 12.0 11.2 11.6
0
4
8
12
16
20
24
28
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2010/3 2011/3 2012/3 2013/3 2014/3 2014/12
Operating income, Operating income ratio
営業利益 営業利益率 Operating income
Operating income
Operating income ratio
44
15%
15% 15%
●:Annualized, real ROE
value excluding special
factors (Chinese tax effect)
●:Annualized real
growth rate
(%)
●:Annualized real
operating margin
Three 15%
Growth potential Sales growth rate
G20 plan targets: ¥1.6 trillion in consolidated net sales in 2020
Profitability Operating income margin
Capital efficiency rate
ROE
(9 months) (9 months) (9 months)
(Millions of yen) (Millions of yen)
Net sales Sales growth rate Return on equity (ROE)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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B=0
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B=255
Copyright (c) Unicharm Corporation. All rights reserved.
0
50
100
150
200
250
0
100
200
300
400
500
600
700
2008 2009 2010 2011 2012 2013 2014
連結売上高(左目盛)
有形固定資産簿価(右目盛)
(年度)(注)14年度連結売上高は、13年度の同期間比伸び率を13年度売上に掛けた年率修正値
(十億円)(十億円)
45
Raising corporate value, achieving sustainable growth, creating investment appeal Adhering to corporate management in line with global investment standards
Rais
ing
co
rpo
rate
va
lue
an
d
ac
hie
vin
g s
usta
ina
ble
gro
wth
(Ste
wa
rdsh
ip c
od
e)
(Sh
are
ma
rket liq
uid
ity)
Inve
stm
en
t from
a b
roa
d ra
ng
e
of in
ve
sto
rs
2009/3 11,700 people
2010/9 (end) (stock split)
1 share → 3 shares
2014/9 24,400 people
2014/9 (end) (stock split)
1 share → 3 shares
2014/12 36,400 people
Individual shareholders and
stock split Sustainable growth and future-oriented investment
JPX Nikkei 400
3 selection standards
0
500
1,000
1,500
2,000
2008 2009 2010 2011 2012 2013 2014
Market capitalization=(year-end closing share price) x
(number of outstanding shares)
Market capitalization
Corporate and share value
0
50
100
150
200
2008 2009 2010 2011 2012 2013 2014
Three-year cumulative operating income
FY14 has a 9-month account settlement period
(disclosed) calculated on operating income
Profitability
Billions
of yen
0%
4%
8%
12%
16%
20%
2008 2009 2010 2011 2012 2013 2014
(9 months)
● 13.5% 12.3%
(FY)
● Three-year average ROE
(Standard of the JPX Nikkei 400)
FY2014, Three-year average ROE: 12.3%
(FY14 has a 9-month account settlement period;
however, after an annualized rate adjustment and
excluding the factor of a temporary Chinese tax
effect, the three-year average ROE is 13.5%
.
(9 months) (9 months)
Billions of yen Billions of yen
. ●
ROE
Capital efficiency
Billions
of yen
(left axis)
(Note) Consolidated net sales for FY14 is an adjusted annualized rate of the FY13 yoy growth rate
multiplied by FY13 net sales.
(Standard of the JPX Nikkei 400)
“Company with a high appeal for investors,” meeting requirements
of global investment standards
(FY) (FY)
Book value of tangible
fixed assets (right axis)
Consolidated net sales
(FY)
Copyright (c) 2012 Unicharm Corporation. All rights reserved. Copyright (c) Unicharm Corporation. All rights reserved.
Shareholder Return Policy
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved.
2.3 2.7 3.0 3.3 3.7
4.9 5.16.0
7.7
9.3
10.711.3
12.7 12.73
14.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
'02/3 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '14/12'15/12E
47
Steady and continual dividend payments On track for 14 consecutive periods of increased dividends!
Change in dividends
※
(Yen) ¥2.07 increase in dividends
※ Fiscal year ended Dec. 31, 2014 is an irregular fiscal year lasting nine months.
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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Copyright (c) Unicharm Corporation. All rights reserved. 48
We will continue to pay dividends that are consistent with earnings and increase dividends in fiscal year ending Dec. 2015 through the share buy-back, and forecast a 50% total shareholders’ return
※
※ Fiscal year ended Dec. 31, 2014 is an irregular fiscal year lasting nine months.
(Millions of yen)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.
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G=0
B=0
R=102
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B=255
Copyright (c) Unicharm Corporation. All rights reserved. 45