FY2023 Financial Report
- FY2023 Financial Results / FY2024 Financial Outlook
- Kureha Mid-/Long-Term Management Plan(FY2023-2030)
- The Rolling Plan 2025
May 13, 2024
1
Contents
Outline | (2) ~ (3) |
Ⅰ .FY2023 Financial Results | |
・FY2023 Financial Summary | (5) ~ (8) |
・Segment Performance | (9)~(12) |
・Financial Position | (13) |
・Cash Flow | (14) |
Ⅱ. FY2024 Financial Outlook | |
・FY2024 Financial Forecast | (16)~(18) |
・Segment PerformanceForecast | (19) ~ (22) |
・Cash Flow Forecast | (23) |
Ⅲ. Key Indicators | |
・ Key Indicators | (25) ~ (27) |
Ⅳ. Kureha Mid-/Long-Term Management Plan(FY2023- | |
2030)- The Rolling Plan 2025 | |
・Performance Targets and KPI | (29) |
・Operating profit Growth Scenario | (30) |
・FY2025 Performance Targets by Segment | (31) |
・Capital Strategies | (32) |
・Shareholder Returns | (33) |
Ⅴ. Business Strategies | |
・PVDF Business | (35)~(39) |
・PGA Business | (40)~(42) |
・Home Products Business- | (43)~(44) |
Agrochemicals Business | |
・Progress in New Business Development | (45)~(46) |
・Improving the Business Portfolio and ROIC | (47) |
・Review of Capital Investment Plans | (48) |
Ⅵ. Progress toward Environmental Load Reduction | |
Targets | (50) |
Outline
FY2023 Results and FY2024 Outlook
Revenue and Profit | ( billion) | ||||||
24/3 | 23/3 | 25/3 | |||||
Result Result | YoY | Forecast | YoY | ||||
Advanced Materials | 64.5 | 82.7 | -18.2 | 70.0 | 5.5 | ||
Specialty Chemicals | 33.9 | 31.8 | 2.2 | 29.0 | -4.9 | ||
Specialty Plastics | 47.3 | 46.8 | 0.5 | 40.0 | -7.3 | ||
Construction | 13.9 | 11.3 | 2.6 | 14.5 | 0.6 | ||
Other Operation | 18.2 | 18.7 | -0.5 | 16.5 | -1.7 | ||
Revenue | 178.0 | 191.3 | -13.3 | 170.0 | -8.0 | ||
Advanced Materials | 4.8 | 10.1 | -5.3 | 5.7 | 0.9 | ||
Specialty Chemicals | 1.7 | 1.8 | -0.2 | 1.0 | -0.7 | ||
Specialty Plastics | 8.2 | 8.6 | -0.4 | 5.2 | -3.0 | ||
Construction | 1.5 | 0.9 | 0.6 | 0.8 | -0.7 | ||
Other Operation | 2.5 | 2.8 | -0.4 | 1.3 | -1.2 | ||
Core operating profit | 18.6 | 24.3 | -5.7 | 14.0 | -4.6 | ||
Adjustments | -5.8 | -2.0 | -3.9 | - | 5.8 | ||
Operating profit | 12.8 | 22.4 | -9.6 | 14.0 | 1.2 | ||
Profit attributable to | 9.7 | 16.9 | -7.1 | 10.0 | 0.3 | ||
owners of Kureha Corp. | |||||||
2
VS FY2022
・Sales and profits of PVDF for LiB declined due to a drop in both volume and unit price as the EV market and customers' inventories continued to adjust, reversing a sharp increase in demand until the 1H of FY2022, when the EV market expanded rapidly.
・The PGA business returned to profitability as a result of progress in inventory liquidation and a gain on asset revaluation of approximately 6.2 billion yen.
・Equity in earnings of PPS business decreased.
(Reference) Difference from the earnings forecast disclosed on March 27, 2024
・Core operating profit improved due to unrecognized expenses and sales increase as customers secured inventories following the withdrawal from the ML film business, as well as a decrease in activity expenses and allowances.
・Operating profit also improved due to a smaller-than-expected loss from the withdrawal from the ML film business, which was recorded in other expenses.
FY2024 Outlook
・In the PVDF for LiB binder for automotive applications, sales are expected to increase due to gradual growth in the EV market, although customer inventory adjustments of LiB will continue. Profit margins in the PVDF business are expected to remain flat due to the sales of products produced from high price raw material will continue during 1H of FY2024 and lower plant utilization.
・PGA sales will increase due to higher sales volume. Despite a decrease in return gain from inventory revaluation, profitability is firmly established due to increased sales volume and restart of the resin plant in the U.S.
・Though plastic products business environment does not change, profit decrease due to higher fixed costs in household products and withdrawal from heat-shrinkable multilayer film business.
・Increase due to lower cost of PPS and increase in equity in earnings of affiliates.
Outline (2)
3
Rolling plan of Mid- to Long-term Management Plan
・The growth of the EV market is slowing down, and the environment for the PVDF business has changed drastically from what was expected at the start of the medium- to long-term management plan.
・Although the EV market is growing at a slower pace than initially expected, it continues to be a growing market, and inventory adjustments by customers are expected to be completed by FY2025.
・Under the Rolling Plan, we will further promote balance sheet management emphasizing return on capital, and have newly set ROE of at least 8% and PBR of at least 1x as key performance indicators (KPIs) for FY2025.
- To improve profits, we will not only wait for the PVDF business to recover, but will also work to raise our profit base level by thoroughly improving profits in other existing businesses and reducing costs throughout the company.
-In addition, the company will engage in M&A in earnest in areas surrounding existing businesses.
-The Company will further strengthen shareholder returns by setting the minimum annual dividend at
86.7 yen/share through FY2025 and doubling the amount of share buybacks to 40 billion yen over the three-year period through FY2025.
- Performance targets and KPIs for FY2030 will be disclosed again at the time of the announcement of the next medium-term management plan starting from FY2026.
4
I. FY2023 Financial Results
(April 1, 2023 - March 31, 2024)
5
FY2023 Financial Summary (1)
( billion)
FY2023 | FY2022 | % | |
Revenue | 178.0 | 191.3 | -7.0% |
Core operating profit | 18.6 | 24.3 | -23.3% |
Adjustments | -0.5 | -0.2 | |
Other income | 1.9 | 1.2 | |
Other expenses | 7.2 | 3.0 | |
Operating profit | 12.8 | 22.4 | -42.7% |
Finantial income | 1.3 | 0.9 | |
Finantial expenses | 0.2 | 0.2 | |
Profit before taxes | 13.9 | 23.0 | -39.5% |
Profit attributable to | 9.7 | ||
oweners of Kureha Corp. | 16.9 | -42.3% | |
Profit per share () | 173.03 | 288.10 | |
FOREX (/USD) | 144.6 | 135.5 | |
(/EUR) | 156.8 | 141.0 | |
(/CNY) | 20.1 | 19.8 |
<VS FY2022> 〔Revenue〕
Sales of PPS, PGA, specialty chemicals, and construction business increased, but PVDF binder sales for LiB declined sharply, resulting in a combined decline in revenue.
〔Core Operating Profit〕
Despite a gain of approximately 6.2 billion yen from inventory revaluation of processed PGA, income decreased due to lower sales of PVDF and lower equity income from PPS.
〔Operating Profit〕
Other expenses decreased from 3.0 billion yen to 7.2 billion yen due to the cancellation of the PVDF manufacturing facility expansion plan in China and expenses for withdrawal from the multilayer barrier shrink film business.
〔Profit Before Taxes〕
Decrease due to lower operating profit.
〔Profit attributable to owners of Kureha Corp.〕
Decrease due to lower profit before tax.
FY2023 Financial Summary (2)
6
Revenue & Core Operating Profit by Segment | ( billion) | |||||
FY2023 | FY2022 | |||||
Results | Results | |||||
1H | 2H | Full-year | 1H | 2H | Full-year | |
Revenue | 88.5 | 89.5 | 178.0 | 101.8 | 89.5 | 191.3 |
Advanced Materials | 34.0 | 30.5 | 64.5 | 47.3 | 35.4 | 82.7 |
Specialty Chemicals | 17.1 | 16.9 | 33.9 | 17.5 | 14.3 | 31.8 |
Specialty Plastics | 23.4 | 23.9 | 47.3 | 23.8 | 23.0 | 46.8 |
Construction | 5.4 | 8.6 | 13.9 | 4.2 | 7.1 | 11.3 |
Other Operations | 8.6 | 9.7 | 18.2 | 8.9 | 9.8 | 18.7 |
Core operating profit | 9.2 | 9.5 | 18.6 | 16.6 | 7.7 | 24.3 |
Advanced Materials | 2.8 | 2.0 | 4.8 | 9.0 | 1.1 | 10.1 |
Specialty Chemicals | 0.8 | 0.9 | 1.7 | 1.6 | 0.2 | 1.8 |
Specialty Plastics | 4.3 | 3.9 | 8.2 | 4.3 | 4.3 | 8.6 |
Construction | 0.2 | 1.3 | 1.5 | 0.3 | 0.6 | 0.9 |
Other Operations | 1.1 | 1.4 | 2.5 | 1.4 | 1.4 | 2.8 |
Adjustments | -0.2 | -0.4 | -0.5 | -0.0 | -0.1 | -0.2 |
Other income | 0.5 | 1.4 | 1.9 | 0.5 | 0.6 | 1.2 |
Other expenses | 0.4 | 6.9 | 7.2 | 0.4 | 2.6 | 3.0 |
Operating profit | 9.1 | 3.7 | 12.8 | 16.7 | 5.6 | 22.4 |
FY2023 Financial Summary (3)
7
Segment Revenue & Core Operating Profit (vs. FY2022) | (¥ billion) | |||||||||||||||||||||||||||||||||||||||||
FY2022 | ||||||||||||||||||||||||||||||||||||||||||
【Revenue】 | FY2022 | 【Core Operating Profit】 | ||||||||||||||||||||||||||||||||||||||||
FY2023 | FY2023 | |||||||||||||||||||||||||||||||||||||||||
82.7 | ||||||||||||||||||||||||||||||||||||||||||
64.5 | 46.8 47.3 | 10.1 | 8.6 | 8.2 | ||||||||||||||||||||||||||||||||||||||
31.833.9 | 11.313.918.7 | 18.2 | 4.8 | 1.8 | 1.7 | 0.9 1.5 | 2.8 | 2.5 | ||||||||||||||||||||||||||||||||||
Advanced | Specialty | Specialty | Constructions Other | |||||||||||||||||||||||||||||||||||||||
Advanced | Specialty | Specialty Constructions | Other | |||||||||||||||||||||||||||||||||||||||
Materials | Chemicals | Plastics | Operations | |||||||||||||||||||||||||||||||||||||||
Materials | Chemicals | Plastics | Operations | |||||||||||||||||||||||||||||||||||||||
Factors affecting operating profit changes
AM: Despite profit improvement due to return of inventory revaluation gain on processed PGA products, profit decreased due to lower sales of PVDF and lower equity income from PPS.
SC: Sales revenue increased for all agrochemicals, pharmaceuticals, and industrial chemicals, but income decreased due to higher costs.
SP: Although sales and earnings of household wrap increased due to price revisions, profits decreased due to a decline in sales of processed plastic products for industrial equipment.
CO: Increase due to increase in private-sector construction work.
- Profitability improved in the hospital operations, but declined in the environmental engineering and Logistics business.
FY2023 Financial Summary (4)
<Other income/expenses, financial income/expenses>
8
(¥ billion) | |||||
FY2023 | FY2022 | ||||
Core operating profit | 18.6 | 24.3 | |||
Adjustment | -0.5 | -0.2 | |||
Other income | *2 | 1.9 | 1.2 | ||
Other expenses | *3 | 7.2 | *1 3.0 | ||
Operating profit | 12.8 | 22.4 | |||
Finantial income | 1.3 | 0.9 | |||
Finantial expenses | 0.2 | 0.2 | |||
Profit before tax | 13.9 | 23.0 | |||
*1 2023/3 Other Expenses
Packaging materials impairment of ML film business:
¥2.1bn
*2 2024/3 Other Incomes
Reversal gain of impairment loss on
ML film business: | ¥0.9bn |
*3 2024/3 Other Expenses
Cancellation of PVDF manufacturing facilities expansion in China:
¥2.3bn
Expense for withdrawal from ML film
business:¥2.8bn
Expense for removal of existing facilities to increase PVDF production at the Iwaki Plant:
¥1.2bn
Segment Performance:
Advanced Materials
( billion) | |||
FY2023 | FY2022 | % | |
Advanced plastics | 45.0 | 63.0 | -29% |
Carbon products | 7.9 | 6.9 | 13% |
Other | 11.6 | 12.7 | -9% |
Revenue | 64.5 | 82.7 | -22% |
Operating profit | 4.8 | 10.1 | -52% |
9
<VS FY2022>
Revenue ➘ Operating profit ➘
Advanced Plastics
Despite the increase in sales revenue of PPS and PGA products for shale oil and gas drilling applications, revenue and profit of PVDF for LiB binder for automotive applications decreased due to the EV market and inventory adjustments by customers, resulting in a decline in total revenue. Decrease in revenue of PVDF and decrease in equity profit of PPS, despite improvement in profit due to gain on revaluation of inventories of processed PGA products.
Carbon Products
Sales and profit increased due to higher sales revenue of carbon fibers for insulation materials for high- temperature furnaces.
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Kureha Corporation published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 09:15:01 UTC.