First Half of the Fiscal Year Ending December 31, 2014
Unicharm Presentation Materials for Investor Meeting
November 7, 2014
Takahisa Takahara
President and CEO
Unicharm Corporation
Projections stated herein include those based on the Company’s assumptions, forecasts and plans
as of November 7, 2014. Therefore, actual results may differ significantly from projections due to
risks and uncertainties associated with market competition, foreign exchange rates, etc.
Financial Results Review :
1H of Fiscal Year Ending December 31, 2014
Change fiscal year ended March 31 to ended December 31 to
standardize the fiscal year for all consolidated subsidiaries
① The consolidated 1H of FY Ending December 31, 2014. (Afterward : “Financial report basis”)
◆Companies with fiscal year ending March: Apr-Sep 2014 ◆Companies with fiscal year ending December: Jan-Sep 2014
Jan-Mar
Apr-Jun
1Q
Companies with
fiscal year ending
March
Companies with
fiscal year ending
December
2013
Jul-Sep Oct-Dec
2Q
3Q
Jan-Mar
4Q
Six
months
Apr-Jun
1Q
2014
Jul-Sep
2Q
Oct-Dec
3Q
Six
months
Six
months
Nine Months
② The consolidated fiscal year for comparison pro forma amount. (Afterward : “Adjusted basis”
◆2013 : Jan-Sep 2013
◆2014 : Jan-Sep 2014
2013
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Box in red)
2014
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Companies with
fiscal year ending
March
Companies with
fiscal year ending
December
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3
【Consolidated】 Year-on-Year Comparison
(Financial report basis)
(Millions of yen）
1H of FY Ending 1H of FY Ending
Difference※
Dec 31, 2014
Mar 31, 2014
Net sales
Difference
(%)※
356,826
286,618
ー
ー
36,708
10.3%
31,045
11.2%
ー
ー
37,725
10.6%
30,976
10.8%
ー
ー
22,692
37.62
17,337
29.66
ー
ー
Operating income
Operating income margin
Ordinary income
Ordinary income margin
Net income
EPS (Yen)
※ Difference is not indicated due to irregular closing account for this consolidated fiscal year.
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Actual operating income margin reached 11.9%
excluding specific factors.
 Year-on-Year Comparison (Financial report basis)
1H of FY Ending 1H of FY Ending
Dec 31, 2014
Mar 31, 2014
Net sales
(Million of yen)
Difference
Difference
(%)
356,826
286,618
ー
ー
36,708
10.3%
32,045
11.2%
ー
ー
Operating income
Operating income margin
(Million of yen)
 Specific factor (Reduced operating income)
1) 1,318 Non-depreciable of Royalty due to standardization the fiscal year
Relation of changing
fiscal year
2)
178 Defrayment of labor cost due to standardization of the fiscal year
External factor
Other
3) 1,750
4) 2,072
Retroaction of last-minute demand due to increasing consumption tax
5)
Running cost in Brazil
1,055
Exchange rate (High cost of raw materials
due to currency depreciation of emerging currency)
43,082
Actual operating income margin
11.9％
Actual operating income
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Segment Information (Financial report basis)
 Business Segment Information (Financial report basis)
Personal
Care
Pet Care
Others
Total
(Million of yen)
Elimination /
Companywide
Consolidated
１H of FY Ending Mar 31, 2014
Net sales
Operating income
245,855
31,443
38,182
415
2,580
169
286,618
32,028
－
314,706
34,762
39,529
1,839
2,591
107
356,826
36,708
－
16
286,618
32,045
0
356,826
36,708
１H of FY Ending Dec 31, 2014
Net sales
Operating income
 Geographical Segment Information (Financial report basis)
Others
Total
Elimination /
Companywide
Japan
Asia
119,976
14,283
123,442
17,124
43,199
703
286,618
32,111
－
123,617
15,827
179,102
19,742
54,106
1,213
356,826
36,783
－
Consolidated
１H of FY Ending Mar 31, 2014
Net sales
Operating income
-66
286,618
32,045
-74
356,826
36,708
１H of FY Ending Dec 31, 2014
Net sales
Operating income
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Overseas sales composition reached 65.6%
driven by steady increasing sales composition in Asia
(61.0% on previous accounting period)
 Changes in Domestic and Overseas Net Sales (Financial report basis)
400
(Billion of yen)
65.6%
58.5%
350
60%
51.7%
50.3%
300
250
38.8%
38.3%
42.0%
31.2%
200
150
70%
23.0%
44.1%
34.0%
50%
43.1%
37.2%
40%
26.2%
30%
20%
100
10%
50
0%
0
'08/9
'09/9
'10/9
Sales in Japan (left axis)
Overseas sales excluding Asia (left axis)
Overseas sales composition ratio (right axis)
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(c)
Unicharm
Corporation.
All rights
rights
reserved.
Copyright (c)
(c) Unicharm
2012 Unicharm
Corporation.
All rights
reserved.
Copyright
Corporation.
All
reserved.
'11/9
'12/9
'13/9
'14/9
Sales in Asia (left axis)
Sales composition ratio in Asia (righ axis)
7
Executed aggressive marketing investments focused in Asia
Actual consolidated operating income margin reached 11.9%
excluding some specific factors of changing fiscal year, etc.
 Actual operating income margin by geographical segment (After considering specific factor)
25.0%
Japan
Asia
Others
Consolidated
20.0%
15.0%
13.9%
12.1%
15.3% 15.2% 14.0%
13.9%
14.8%
12.2% 13.0% 12.0%
12.4%
12.1%
11.9%
10.9% 10.7%
10.5%
12.4% 12.0% 12.8%
11.9%
11.8%
9.2%
10.0%
11.2%
7.0% 9.4%
6.2%
8.1% 9.0% 9.2% 5.2%
4.0%
4.5%
5.0%
3.0%
2.4% 2.5% 2.3% 2.2%
1.6%
0.0%
'05/9
'06/9
'07/9
Copyright (c)
(c) Unicharm
2012 Unicharm
Corporation.
All rights
reserved.
Copyright
Corporation.
All rights
reserved.
'08/9
'09 /9 '10 /9 '11 /9
'12/9
'13/9
'14/9
8
Both net sales and operating income reached
double-digit growth
 Year-on-Year Comparison
(Adjusted basis※ ’14/1 - ’14/9 vs ’13/1 - ’13/9)
1H of FY Ending 1H of FY Ending
Dec 31, 2014
Mar 31, 2014
(Adjusted basis) (Adjusted basis)
Net sales
Operating income
Operating income
margin
(Million of yen)
Difference
Difference
(%)
469,345
418,518
50,827
12.1％
51,511
11.0%
44,057
10.5%
7,454
16.9％
Note
※ Financial results after adjustment are management accounting basis.
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9
Pet Care Business in Japan improved performance
due to market revitalization and efficient promotional activities
 Business Segment Information (Adjusted basis ’14/1-9 vs ’13/1-’13/9)
(Million of yen)
Personal
Care
Pet Care
Others
Total
Elimination /
Company wide
Consolidated
1H of FY Ending Mar 31,
2014
359,520
44,095
55,169
-332
3,829
294
418,518
44,057
－
－
418,518
44,057
Net sales
Operating income
407,016
49,371
58,354
1,967
3,975
172
469,345
51,511
－
－
469,345
51,511
Difference
Net sales
Operating income
47,496
5,276
3,185
2,299
146
-122
50,827
7,454
－
－
50,827
7,454
Net sales
Operating income
1H of FY Ending Dec 31,
2014
Difference (%)
Net sales
Operating income
13.2%
12.0%
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5.8%
－
3.8%
-41.5%
12.1%
16.9%
－
－
12.1%
16.9%
10
Personal Care Business in Japan improved operating income
due to consecutive proposal of high value-added products
 Geographical Segment Information (Adjusted basis ’14/1-’14/9 vs ’13/1-’13/9)
(Million of yen)
Japan
Asia
Others
Total
Elimination /
Consolidated
Companywide
1H of FY Ending Mar 31,
2014
174,968
20,391
179,187
24,693
64,363
1,946
418,518
47,030
－
-2,973
418,518
44,057
Net sales
Operating income
187,769
25,509
211,679
26,007
69,897
2,089
469,345
53,605
－
-2,094
469,345
51,511
Difference
Net sales
Operating income
12,801
5,118
32,492
1,314
5,534
143
50,827
6,575
－
Difference (%)
Net sales
Operating income
7.3%
25.1%
18.1%
5.3%
8.6%
7.3%
12.1%
14.0%
－
－
Net sales
Operating income
1H of FY Ending Dec 31,
2014
Copyright
(c)
Unicharm
Corporation.
All rights
rights
reserved.
Copyright (c)
(c) Unicharm
2012 Unicharm
Corporation.
All rights
reserved.
Copyright
Corporation.
All
reserved.
879
50,827
7,454
12.1%
16.9%
11
Impact on sales and operating income due to exchange rate (Financial report basis)
Net sales increased approx. ¥7.9 billion year on year,
while operating income decreased approx. -1.4 billion
Currency
Previous year
exchange rate
Current year
exchange rate
Change in rate
Taiwan (TWD)
3.32
3.43
3.3%
Thailand (THB)
3.23
3.21
-0.6%
South Korea (KRW)
0.0867
0.0993
14.5%
Indonesia (IDR)
0.0098
0.0089
-9.2%
Malaysia (MYR)
31.37
32.08
2.3%
Netherland (EUR)
125.50
139.49
11.1%
China (CNY)
15.47
16.76
8.3%
Philippines (PHP)
2.34
2.35
0.4%
Saudi Arabia (SAR)
26.40
27.60
4.5%
India (INR)
1.70
1.74
2.4%
USA (USD)
98.85
103.36
4.6%
Russia (RUR)
3.08
2.91
-5.5%
Australia (AUD)
96.91
94.71
-2.3%
Vietnam (VND)
0.0045
0.0049
8.9%
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12
Financial Results Forecasts for Fiscal Year
Ending December 31, 2014
Both net sales and operating income have made
steady progress in the 1H of fiscal year ending Dec 31, 2014
(Million of yen)
Fiscal year ending
December 31, 2014
(Published value)
1H of Fiscal year ending
Achievement Rate
December 31, 2014
(%)
(Actual)
540,000
356,826
66.1％
Operating income margin
56,600
10.5%
36,708
10.3%
64.9％
Ordinary income
Ordinary income margin
55,000
10.2%
37,725
10.6%
68.6％
Net income
Net income margin
31,700
5.9%
22,692
6.4%
71.6％
Net sales
Operating income
Note: As the fiscal year ending December 31, 2014 will be a transitional period, the forecasts here are for a ninemonth fiscal year (from April 1, 2014 to December 31, 2014) for consolidated companies whose fiscal year
ended in March and a 12-month fiscal year (January 1, 2014 to December 31, 2014) for consolidated
companies whose fiscal year ended in December.
14
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Shareholder Return Policy
We acquired the treasury shares of ¥8.0 billion (approx 3.5 million shares after stock split ).
We will continue to pay dividends that are consistent with earnings and
increase dividends in fiscal year ending December, 2014 and forecast a 50%
total shareholders’ return.
(Million of yen)
Dividends
30,000
Purchase of own shares
Total retun ratio
70.0%
58.7%
20,000
60.0%
55.6%
25,000
47.5%
46.2%
51.4%
49.5%
50.0%
50.0%
44.7%
40.3%
38.3%
40.0%
15,000
30.0%
10,000
20.0%
5,000
10.0%
0
0.0%
'06/3
'07/3
'08/3
'09/3
'10/3
'11/3
'12/3
'13/3
'14/3
'14/12E ※
※ Fiscal year ending Dec. 2014 is an irregular fiscal year lasting nine months.
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16
The planned dividend for fiscal year ending December 31, 2014
is ¥12.73 per share
The dividend is paid out stably and continuously
 Change in dividends
（Yen)
※
12.7
12.7
14.0
12.0
10.7
9.3
10.0
7.7
8.0
6.0
4.0
11.3
4.9
2.3
2.7
3.0
3.3
5.1
6.0
3.7
2.0
0.0
'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 '14/12E
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※ After stock split
17
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18