fy 2020 first-half financial results briefing material€¦ · eur 120 yen -5 yen rub 1.6 yen -0.0...
TRANSCRIPT
FY 2020 First-Half Financial Results
Briefing Material
August 7, 2020
The Yokohama Rubber Co., Ltd.
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 2
Scope of Consolidation, etc.
■Scope of consolidation
Consolidated subsidiaries 119 companies
(2 less than at the end of previous fiscal year)
(Breakdown of change)
-2 company
Japan: -2 company
Tire indirectly owned sales subsidiary
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 3
Profit and Loss (First Half)
Exchange
Rates
US$ 108 yen 110 yen (previous year) -2 yen
EUR 119 yen 124 yen (previous year) -5 yen
RUB 1.6 yen 1.7 yen (previous year) -0.1 yen
TSR20* 123 cents 146 cents (previous year) -23 cents
WTI 37 dollars 57 dollars (previous year) -21 dollars
*SICOM TSR20 1M
2020
Jan.-Jun.
2019
Jan.-Jun.
Sales revenue 247.1 311.1
Business profit*1
(Business profit margin)
2.3(0.9%)
17.2(5.5%)
Operating profit(Operating profit margin)
2.9(1.2%)
25.1(8.1%)
Profit *2 1.3 16.7
ChangeChange
(%)
-64.0 -20.6%
-15.0(-4.6%)
-86.8%
-22.2(-6.9%)
-88.3%
-15.5 -92.5%
*1 Business profit= Sales revenue- (Cost of sales + SG&A expenses)
*2 Profit attributable to owners of parent
(billion yen)
Exchange
rate
impact
Change
excluding
impact of
exchange rates
-3.8 -60.2
-0.7 -14.3
-0.7 -21.5
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 4
Business Segment (First Half)
2020
Jan.-Jun.
2019
Jan.-Jun.
Sale
s re
ven
ue
Tires 166.6 210.1
MB 47.5 59.5
ATG 30.1 37.3
Other 3.0 4.2
Total 247.1 311.1
ChangeChange
(%)
-43.5 -20.7%
-12.0 -20.2%
-7.2 -19.3%
-1.3 -29.9%
-64.0 -20.6%
Bu
sin
ess p
rofit
Tires -2.0 7.5
MB 1.4 4.0
ATG 3.2 5.2
Other -0.4 0.5
Intersegment
eliminations0 0
Total 2.3 17.2
-9.5 –
-2.6 -65.2%
-1.9 -37.3%
-0.9 –
+0 –
-15.0 -86.8%
(billion yen)
Exchange
rate
impact
Change
excluding
impact of
exchange rates
-2.8 -40.7
-0.5 -11.5
-0.5 -6.7
-0 -1.3
-3.8 -60.2
-0.6 -9.0
-0.1 -2.5
-0 -1.9
-0 -0.9
– +0
-0.7 -14.3
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
Factor Analysis of Business Profit
2020 First Half(billion yen)
Factors that boosted
business profit
Factors that reduced
business profit
Tires-8.3
MB/Others-3.5
ATG-1.9
Business profit: -15.0 billion yen (excluding special factor: -13.8 billion yen)2019 2020
Business
profit
for
previous
fiscal year
Businessprofit
for 2020
Fixed cost
Sales volumeRaw material
prices
Exchange rate
difference
Prices/ MIX
ATG
Other
MB
Production costs
17.2
2.3
-0.6 +4.6
-7.5
-1.2+2.3
-1.9
-2.6-0.9
(Breakdown)
Natural rubber +0.1
Synthetic rubber +2.0
Compound agent +1.8
Other +0.7
(Breakdown)
Sales volume -11.9
Variable cost +2.8
US$ 108 yen 110 yen (previous year) -2 yen
EUR 119 yen 124 yen (previous year) -5 yen
RUB 1.6 yen 1.7 yen (previous year) -0.1 yen
-9.1Special factor
+2.0
Special factor
-1.2
5
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 6
Profit and Loss (Quarterly)
Exchange
Rates
US$ 109 yen -1 yen
EUR 120 yen -5 yen
RUB 1.6 yen -0.0 yen
TSR20* 134 cents -6 cents
WTI 46 dollars -9 dollars
US$ 108 yen -2 yen
EUR 119 yen -5 yen
RUB 1.5 yen -0.2 yen
111 cents -41 cents
28 dollars -32 dollars
US$ 108 yen -2 yen
EUR 119 yen -5 yen
RUB 1.6 yen -0.1 yen
123 cents -23 cents
37 dollars -21 dollars
2020
Jan.–Mar.
YoY
Change
Sales revenue 129.1 -20.4
Business profit*1
(Business profit margin)
1.8(1.4%)
-4.0(-2.5%)
Operating profit(Operating profit margin)
1.2(1.0%)
-11.6(-7.6%)
Profit*2 -0.3 -9.4
2020
Apr.–Jun.
YoY
Change
118.0 -43.6
0.5(0.4%)
-11.0(-6.7%)
1.7(1.4%)
-10.5(-6.2%)
1.5 -6.1
2020
Jan.-Jun.
YoY
Change
247.1 -64.0
2.3(0.9%)
-15.0(-4.6%)
2.9(1.2%)
-22.2(-6.9%)
1.3 -15.5
(billion yen)
*1 Business profit= Sales revenue- (Cost of sales + SG&A expenses)
*2 Profit attributable to owners of parent
*SICOM TSR20 1M
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 7
Business Segment (Quarterly)
2020
Apr.-Jun.
2019
Apr.-Jun.
Sale
s re
ven
ue
Tires 79.2 110.0
MB 22.6 30.7
ATG 14.5 18.4
Other 1.7 2.5
Total 118.0 161.6
ChangeChange
(%)
-30.8 -28.0%
-8.0 -26.2%
-3.9 -21.1%
-0.9 -34.5%
-43.6 -27.0%
Bu
sin
ess p
rofit
Tires -1.5 6.0
MB 0.5 2.3
ATG 1.5 2.7
Other 0 0.4
Intersegment
eliminations0 0
Total 0.5 11.4
-7.5 –
-1.8 -79.6%
-1.3 -46.5%
-0.4 -92.2%
+0 –
-11.0 -96.0%
(billion yen)
Exchange
rate
impact
Change
excluding
impact of
exchange rates
-1.8 -29.0
-0.3 -7.7
-0.3 -3.6
-0 -0.9
-2.4 -41.2
-0.3 -7.2
-0.1 -1.8
-0 -1.2
-0 -0.4
– +0
-0.4 -10.5
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
First Quarter (Jan.-Mar.)
Business
profit
for
previous
fiscal yearBusiness
profitfor 2020
5.8
1.8
Fixed cost
Sales
volumeRaw material
prices
Exchange rate
difference
Prices/ MIX
ATG
Other
MB
Production costs
-0.2 +2.3-1.7
-0.6
-1.0 +0.3
-0.7-0.8
-0.6
Business profit: -4.0 billion yen(excluding special factor: -2.8 billion yen)
Business profit: -11.0 billion yen
Second Quarter (Apr.-Jun.)
Businessprofit
forprevious
fiscal year
Businessprofit
for 202011.4
0.5
-0.3 +2.3
-7.4
-6.9 +3.0
+1.9 -1.3-1.8 -0.3
(Breakdown)Natural rubber -0Synthetic rubber +0.9Compound agent +1.0Other +0.3
Fixed cost
Sales volumeRaw material
pricesExchange rate
difference
Prices/ MIX
ATG
Other
MB
Production costs
US$ 108 yen 110 yen(previous year) -2 yen
EUR 119 yen 123 yen(previous year) -5 yen
RUB 1.5 yen 1.7 yen(previous year) -0.2 yen
(Breakdown)
Sales volume -9.6
Variable cost +2.2
Factor Analysis of Business Profit
8
Special factor
-1.2US$ 109 yen 110 yen(previous year) -1 yen
EUR 120 yen 125 yen(previous year) -5 yen
RUB 1.6 yen 1.7 yen(previous year) -0.0 yen
(Breakdown)
Sales volume -2.3
Variable cost +0.6
(Breakdown)
Natural rubber +0.1
Synthetic rubber +1.0
Compound agent +0.8
Other +0.4
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 9
Jun. 30, 2020 Dec. 31, 2019
Current assets 309.2 331.5
Non-current assets 548.0 576.0
Total assets 857.2 907.6
Liabilities 458.9 479.9
Equity 398.4 427.7
Total liabilities and equity 857.2 907.6
Change
-22.3
-28.0
-50.3
-21.0
-29.3
-50.3
Cash and cash
equivalents 39.9 27.9
Interest-bearing debt * 261.3 239.9
Ratio of equity attributable
to owners of parent45.6% 46.2%
D/E ratio 0.67 0.57
+12.0
+21.4
-0.6%
+0.10
(billion yen)
Financial Position
*Interest-bearing debt does not include lease liabilities
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
Changes in Interest-bearing Debt, Total equity, D/E Ratio, and Net D/E Ratio
Total equity (billion yen)*
* Total equity do not include non-controlling interests.
10
D/E ratio
418.9
239.9
0.57
0.51
374.0
260.4
0.70
0.61
379.8
315.6
0.83
0.68
Net D/E ratio
Interest-bearing debt (billion yen)
390.8
0.67
0.5758.3
31.7
261.3
39.9
Cash and deposits (billion yen)
27.9
382.5
249.2
22.1
0.65 0.59
19/6Same period of
previous year
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 11
State of Cash Flows
2020
Jan.-Mar.
2020
Apr.-Jun.
2020
Jan.-Jun.
2019
Jan.-Jun.
CF from operating
activities2.7 16.5 19.2 28.6
CF from investing
activities -10.0 -9.0 -19.0 -20.8
Free CF -7.4 7.6 0.2 7.8
CF from financing
activities51.4 -39.0 12.4 -17.2
Closing balance of
cash and cash
equivalents
71.1 39.9 39.9 22.1
Change
-9.4
+1.8
-7.6
+29.6
+17.9
(billion yen)
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 12
Earnings Forecast for FY 2020
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 13
FY2020 Profit and Loss Projections (Full Year)(Changed from the previous forecast)
Exchange
Rates
US$ 105 yen
EUR 124 yen
RUB 1.5 yen
TSR20* 118 cents
WTI 37 dollars
*SICOM TSR20 1M
2020
full year
(forecast)
2019
full year
(result)
Sales revenue 536.0 650.5
Business profit*1
(Business profit margin)
21.0(3.9%)
50.1(7.7%)
Operating profit(Operating profit margin)
20.0(3.7%)
58.6(9.0%)
Profit *2 12.5 42.0
*1 Business profit= Sales revenue- (Cost of sales + SG&A expenses)
*2 Profit attributable to owners of parent
(billion yen)
ChangeChange
(%)
-114.5 -17.6%
-29.1(-3.8%)
-58.1%
-38.6(-5.3%)
-65.8%
-29.5 -70.2%
Forecasts after July 2020
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 14
Full-Year Forecast by Business Segment (YoY)
2020
forecast
2019
result
Sa
les
reve
nu
e
Tires 380.0 451.7
MB 93.0 119.3
ATG 57.0 70.8
Other 6.0 8.6
Total 536.0 650.5
Bu
sin
es
s p
rofit
Tires 12.7 30.8
MB 2.3 8.3
ATG 6.0 10.4
Other 0 0.5
Intersegment eliminations – 0.1
Total 21.0 50.1
(billion yen)
YoY
ChangeChange
(%)
-71.7 -15.9%
-26.3 -22.1%
-13.8 -19.5%
-2.6 -30.3%
-114.5 -17.6%
-18.1 -58.8%
-6.0 -72.4%
-4.4 -42.3%
-0.5 -100.0%
-0.1 –
-29.1 -58.1%
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
Factor Analysis of Business Profit (Full Year)
2020 Full-Year Forecast(billion yen)
Factors that boosted
business profit
Factors that reduced
business profit
Tires-18.1
MB/Others-6.6
ATG-4.4
Business profit: -29.1 billion yen (excluding special factor: -27.9 billion yen)2019 2020
Business
profit
for
previous
fiscal year
Businessprofit
for 2020
Fixed cost
Sales volume
Raw material
prices
Exchange rate
difference
Prices/ MIX ATG
Other
MB
Production costs
50.1
21.0
-0.5 +11.1
-12.3 -1.2+4.5 -4.4
-6.0 -0.6(Breakdown)
Natural rubber +1.3
Synthetic rubber +4.4
Compound agent +4.1
Other +1.4
(Breakdown)
Sales volume -20.2
Variable cost +4.1
US$ 107 yen 109 yen(previous year) -2 yen
EUR 122 yen 122 yen(previous year) -0 yen
RUB 1.5 yen 1.7 yen(previous year) -0.2 yen
-16.0
Special factor
-3.6
15
Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 16
Cautionary Notes Regarding Forecasts
Forecasts and outlooks included in this material
are based on the judgment of the Company's
management using currently available information.
Actual results and earnings may differ from the
forecasts and outlooks included in the material due
to various risks and uncertainties.
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
Reference Material
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
Strong financial base
Credit rating from Japan Credit Rating Agency (JCR)
at July 9, 2020: A+/Stable
Business Foundation
◼Cash flow creation
Free cash flow in first
half of 2020: Positive
Operating CF: ¥218.6 billion
Free CF: ¥102.1 billion
(totals for FY2017-19)
◼Short-term liquidity
Commitment line
from lenders: ¥75.0 billion
Ten-year bond
issued in July: ¥10.0 billion
Solid bank
formation: Reliable
relationships
with lenders
◼Strong Financial position
Net debt/equity ratio: 0.57x
(as of end-June 2020)
Free CF
Operating CF (billion yen)
60.5
82.8 75.4
30.739.7
31.7
FY17 FY18 FY19 FY20 1H
19.2
0.2
v
18/12 19/12 20/3
0.6 months0.5
1.731.7 27.9
71.1
20/6
39.9
1.0
Cash & deposits
Short-term liquidity
(billion yen)
v
Total equity Interest-bearing debt
Net D/E ratio(billion yen)
374.0
260.4
418.9
239.9
390.8
261.3
0.61 0.510.57
18/12 19/12 20/6