1

Financial Results for the 3rd Quarter FY 2012

February 5, 2013

2

Contents

・ FY12 3rd Quarter Consolidated Results ・ FY12 Consolidated Forecasts ・ Appendix
※This “3rd Quarter (3Q)” data states information for 9 month totals.

3

FY12 3rd Quarter Consolidated Results

Scope of Consolidation
- Financial Results for the 3rd Quarter FY12 -

4

Item

End of FY11 (A)

End of FY12 3Q (B)

Change (B) - (A)

Notes

Number of consolidated subsidiaries Number of equity method affiliates Total

67 25 92

68 25 93

+1 0 +1

Newly Included: 1 Newly Excluded: None

Newly Included: None Newly Excluded: None

Environmental Factors
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
Item FY11 3Q (A)
Exchange Rate (CIF) Naphtha (Domestic) Benzene
(Average of US and Euro Contract Price)

5

FY12 3Q (B)

Change (B) - (A)

Impacts on Consolidated OP Income

Yen/$ $/t Yen/KL $/t

79.0 966 55,200 1,171 144.3 11,400

80.0 961 55,400 1,277 127.9 10,230

1.0 -5 200 106 -16.4 -1,170

-0.1 0.0 (-0.1) -2.3 (-2.1) 2.3 (2.1)

Material Price

Australian Coal (CIF)

$/t Yen/t

( ): including impacts from fluctuation of exchange rate

Major P/L & B/S Items
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
Item
Sales Operating income Ordinary income Net income

6

FY11 3Q (A)

FY12 3Q (B)

Change (B) - (A)

470.9 35.0 31.1 19.4
End of FY11 (A)

464.4 23.1 22.0 12.5
End of FY12 3Q (B)

-6.5 -11.8 -9.0 -6.8
Change (B) - (A)

Item
Total assets Debt Net debt Equity capital *1

664.9 253.9 220.8 199.4

677.9 259.3 222.5 210.3

12.9 5.4 1.7 10.8

*1: Equity capital = Net assets - Share subscription rights - Minority interests

Non Operating Items
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
FY11 3Q Item (A)
Operating income

7

FY12 3Q (B)

Change (B) - (A)

35.0 -2.3 0.9 -2.5 -3.9 31.1

23.1 -1.9 1.1 -0.3 -1.1 22.0

-11.8 0.3 0.2 2.2 2.7 -9.0

Ordinary income

Non operating income

Net interest expense Equity in earnings of unconsolidated subsidiaries and affiliated companies Others Total

Extraordinary Items
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
Item FY11 3Q (A)
Gain on transfer of business Others Extraordinary income Loss on disposal of PP&E Loss on valuation of investment securities Loss on impairment Others Extraordinary loss Net extraordinary income/loss

8

FY12 3Q (B)

Change (B) - (A)

‐ 0.2 0.2 -0.4 -1.0 0.0 -0.1 -1.6 -1.3

0.2 0.4 0.7 -0.9 0.0 -2.7 -0.2 -3.9 -3.2

0.2 0.2 0.4 -0.5 1.0 -2.6 0.0 -2.3 -1.8

Operating Income – Net Income
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)

9

Item
Operating income Non operating item Ordinary income Extraordinary item Income before income tax and minority interest Income tax and minority interest Net income Net income per share(Yen/Share)

FY11 3Q (A)

FY12 3Q (B)

Change (B) - (A)

35.0 -3.9 31.1 -1.3 29.7 -10.3 19.4 19.35yen

23.1 -1.1 22.0 -3.2 18.8 -6.2 12.5 12.51yen

-11.8 2.7 -9.0 -1.8 -10.9 4.0 -6.8 -6.84yen

Sales by Segment
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
Segment FY11 3Q (A)
Chemicals & Plastics Specialty Chemicals & Products Pharmaceutical Cement & Construction Materials Machinery & Metal Products Energy & Environment Others Adjustment Total

10

FY12 3Q (B)

Change (B) - (A)

Major Factors
Caprolactam chain -6.3 Synthetic rubber -4.9 Specialty products -2.7 Fine chemicals 0.7

174.1 48.8 6.9 154.6 48.6 46.0 19.8 -28.1 470.9

162.9 46.9 8.3 155.9 50.9 49.5 19.3 -29.5 464.4

-11.2 -1.9 1.4 1.3 2.2 3.4 -0.4 -1.3 -6.5

Cement and Ready-mixed concrete 3.6 Construction materials and Quicklime related products -2.2, etc.

Coal 2.8, Power 0.7

Decreased by 1.4%

Operating Income by Segment
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
Segment FY11 3Q (A)
Chemicals & Plastics Specialty Chemicals & Products Pharmaceutical Cement & Construction Materials Machinery & Metal Products Energy & Environment Others Adjustment Total

11

FY12 3Q (B)

Change (B) - (A)

Major Factors
Caprolactam chain -12.5 Synthetic rubber -2.6 Specialty products -2.8 Fine chemicals -0.9

19.4 5.1 2.1 5.8 0.7 2.5 0.8 -1.5 35.0

4.3 1.5 2.7 8.0 2.7 4.2 0.8 -1.2 23.1

-15.1 -3.6 0.6 2.2 2.0 1.7 0.0 0.2 -11.8

Cement and Ready-mixed concrete 2.5 Construction materials and Quicklime related products -0.4, etc.

Coal 0.3, Power 1.5

Decreased by 33.9%

Analysis of Operating Income
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
Operating Income
Segment
FY11 3Q (A)
Chemicals & Plastics Specialty Chemicals & Products Pharmaceutical Cement & Construction Materials Machinery & Metal Products Energy & Environment Others Adjustment Total

12

FY12 3Q (B)

Change (B) - (A) Price *1

Sales Volume

Fixed Cost

Others *2

19.4 5.1 2.1 5.8 0.7 2.5 0.8 -1.5 35.0

4.3 1.5 2.7 8.0 2.7 4.2 0.8 -1.2 23.1

-15.1 -3.6 0.6 2.2 2.0 1.7 0.0 0.2 -11.8

-14.7 -2.8 -0.6 2.1 0.1 0.8 -0.1 0.0 -15.2

1.1 1.1 1.3 -1.2 -0.1 0.4 0.1 0.0 2.5

-1.4 -0.8 -0.3 1.6 0.0 0.3 0.1 0.2 -0.3
*3

-0.2 -1.0 0.3 -0.3 2.0 0.2 0.0 0.1 1.1

*1: Including both selling and purchase change *3: Including marginal profit on machinery products 2.1

*2: Including inventory valuation changes -0.7

Consolidated Balance Sheet
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
End of FY11 Item (A)
Current assets Fixed assets Total assets Interest-bearing debts Other liabilities Total liabilities Equity capital *1 Minority interests and others Total net assets Total liabilities and net assets

13

End of FY12 3Q (B)

Change (B) - (A)

284.4 380.4 664.9 253.9 186.5 440.5 199.4 24.9 224.4 664.9

295.8 382.0 677.9 259.3 174.8 434.1 210.3 33.3 243.7 677.9

11.3 1.5 12.9 5.4 -11.7 -6.3 10.8 8.4 19.3 12.9

*1: Equity capital = Net assets - Share subscription rights - Minority interests

Consolidated Statements of Cash Flows
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
Item FY11 3Q FY12 3Q
Income before tax and minority interests 18.8 Depreciation and amortization 23.4 Working capital -7.0, Tax payment and others -11.3, etc. Acquisition of PP&E -28.9, etc.

14

A.Cash flows from operating activities

16.2 -31.3 -15.1 1.2 -14.6 34.9

24.1 -28.7 -4.5 7.8 3.7 36.8

B.Cash flows from investing activities Free cash flows (A+B)

C.Cash flows from financing activities

Increase/Decrease in interest-bearing debts 4.8 Proceeds from stock issuance to minority shareholders 9.6 Dividends and others -6.1, etc.

D.Net increase/decrease in cash and cash equivalents E.Cash and cash equivalents at end of the quarter

15

FY12 Consolidated Forecasts

Scope of Consolidation
- FY12 Consolidated Forecasts -

16

Item

End of FY11 (A)

End of FY12 (B)

Change (B) - (A)

Notes

Number of consolidated subsidiaries Number of equity method affiliates Total

67 25 92

67 26 93

0 +1 +1

Newly Included: 1 Newly Excluded: 1

Newly Included: 1 Newly Excluded: None

Environmental Factors
- FY12 Consolidated Forecasts -
(Billion Yen)
Item FY11 (A)
Exchange Rate (CIF) Naphtha (Domestic) Benzene
(Average of US and Euro Contract Price)

17

FY12 (B)

Change (B) - (A)

Impacts on Consolidated OP Income

Yen/$ $/t Yen/KL $/t

79.1 965 55,000 1,147 143.6 11,360

82.5
[90.0]

3.4 -7 1,900 172 -16.9 -910

0.0 0.1 (-0.7) -5.4 (-6.1) 3.2 (2.1)

958
[950]

56,900
[61,400]

[ ]: numbers for the 4th quarter of the period only

Material Price

1,319
[1,481]

Australian Coal (CIF)

$/t Yen/t

126.7
[123.2]

10,450
[11,090]

( ): including impacts from fluctuation of exchange rate

Major P/L & B/S Items
- FY12 Consolidated Forecasts -
(Billion Yen)
Item
Sales Operating income Ordinary income Net income

18

FY11 (A)

FY12 (B)

Change (B) - (A)

638.6 46.0 40.8 22.9
End of FY11 (A)

628.0 28.0 23.5 5.5
End of FY12 (B)

-10.6 -18.0 -17.3 -17.4
Change (B) - (A)

Item
Total assets Debt Net debt Equity capital *1 Dividend(Yen /Share)

664.9 253.9 220.8 199.4 5.0

693.0 251.0 217.0 209.0 5.0

28.1 -2.9 -3.8 9.6 0.0

*1: Equity capital = Net assets - Share subscription rights - Minority interests

Operating Income – Net Income
- FY12 Consolidated Forecasts -
(Billion Yen)

19

Item
Operating income Non operating item Ordinary income Extraordinary item Income before income tax and minority interest Income tax and minority interest Net income Net income per share(Yen/Share)

FY11 (A)

FY12 (B)

Change (B) - (A)

46.0 -5.1 40.8 -3.2 37.5 -14.6 22.9 22.85yen

28.0 -4.5 23.5 -13.5 10.0 -4.5 5.5 5.47yen

-18.0 0.6 -17.3 -10.3 -27.5 10.1 -17.4 -17.38yen

Sales by Segment
- FY12 Consolidated Forecasts -
(Billion Yen)
Segment FY11 (A)
Chemicals & Plastics Specialty Chemicals & Products Pharmaceutical Cement & Construction Materials Machinery & Metal Products Energy & Environment Others Adjustment Total

20

FY12 (B)

Change (B) - (A)

Major Factors
Caprolactam chain -4.7 Synthetic rubber -6.3 Specialty products -3.0 Fine chemicals 1.7

231.0 64.3 11.1 209.1 72.5 62.5 25.9 -38.0 638.6

220.0 63.0 11.5 207.0 72.0 68.0 23.5 -37.0 628.0

-11.0 -1.3 0.4 -2.1 -0.5 5.5 -2.4 1.0 -10.6

Cement and Ready-mixed concrete 1.3 Construction materials and Quicklime related products -3.6, etc.

Coal 5.1, Power 0.4

Overseas sales subsidiaries -1.0, etc.

Decreased by 1.7%

Operating Income by Segment
- FY12 Consolidated Forecasts -
(Billion Yen)
Segment FY11 (A)
Chemicals & Plastics Specialty Chemicals & Products Pharmaceutical Cement & Construction Materials Machinery & Metal Products Energy & Environment Others Adjustment Total

21

FY12 (B)

Change (B) - (A)

Major Factors
Caprolactam chain -15.4 Synthetic rubber -3.8 Specialty products -3.9 Fine chemicals -0.3

22.9 5.4 3.7 8.6 3.0 3.3 1.0 -2.3 46.0

3.8 1.2 3.2 11.0 4.0 6.0 1.0 -2.2 28.0

-19.1 -4.2 -0.5 2.4 1.0 2.7 0.0 0.1 -18.0

Cement and Ready-mixed concrete 3.3 Construction materials and Quicklime related products -1.2, etc.

Coal 0.4, Power 2.3

Decreased by 39.1%

【Reference】 FY12 Consolidated Forecasts
-Net Sales (Comparisons for forecasts at the beginning of the period, by segment)(Billion Yen)
Segment
Beginning forecasts (A)
10/15/2012 Publication

22

Revised forecasts (B)
2/5/2013 Publication

Change (B) - (A)

Major Factors
Caprolactam chain 0.4 Synthetic rubber -4.4 Specialty products -7.8 Fine chemicals -0.2

Chemicals & Plastics Specialty Chemicals & Products Pharmaceutical Cement & Construction Materials Machinery & Metal Products Energy & Environment Others Adjustment Total

224.0 71.0 12.5 207.5 72.5 65.0 23.5 -38.0 638.0

220.0 63.0 11.5 207.0 72.0 68.0 23.5 -37.0 628.0

-4.0 -8.0 -1.0 -0.5 -0.5 3.0 0.0 1.0 -10.0

Cement and Ready-mixed concrete 3.0 Construction materials and Quicklime related products -3.2, etc.

Coal 2.8, Power 0.2

Decreased by 1.6%

【Reference】 FY12 Consolidated Forecasts
-Operating Income (Comparisons for forecasts at the beginning of the period, by segment)(Billion Yen)
Segment
Beginning forecasts (A)
10/15/2012 Publication

23

Revised forecasts (B)
2/5/2013 Publication

Change (B) - (A)

Major Factors
Caprolactam chain -1.5 Synthetic rubber -2.6 Specialty products -3.6 Fine chemicals -0.9

Chemicals & Plastics Specialty Chemicals & Products Pharmaceutical Cement & Construction Materials Machinery & Metal Products Energy & Environment Others Adjustment Total

7.9 5.7 4.0 11.4 3.5 4.8 1.0 -2.3 36.0

3.8 1.2 3.2 11.0 4.0 6.0 1.0 -2.2 28.0

-4.1 -4.5 -0.8 -0.4 0.5 1.2 0.0 0.1 -8.0

Cement and Ready-mixed concrete 0.6 Construction materials and Quicklime related products -1.1, etc.

Coal 0.5, Power 0.7

Decreased by 22.2%

Management Indices
- FY12 Consolidated Forecasts -
FY11 Item Computation Unit (A)
Net debt /Equity capital

24

FY12 (B)

Change (B) - (A)

Net D/E Ratio

Times

1.1 30.0 7.2 7.2 11.9

1.0 30.2 4.5 4.3 2.7

-0.1 0.2 -2.7 -2.9 -9.2

Equity Ratio

Equity capital /Total assets

%

Operating margin

Operating Income /Sales

%

Return on Assets (ROA)

Business income /Total assets

%

Return on Equity (ROE)

Net income /Equity capital

%

Notes: Business income = Operating income + Interest and dividend income + Equity income of unconsolidated subsidiaries and affiliates

25

Appendix

Major Subsidiaries
- Financial Results for the 3rd Quarter FY12 -
(Billion Yen)
Sales Operating income change from FY11 3Q

26

Subsidiaries and Affiliates
UBE CHEMICALS (ASIA) PUBLIC CO., LTD UBE CHEMICAL EUROPE, S.A. THAI SYNTHETIC RUBBERS CO., LTD. Chemicals & Plastics UBE ENGINEERING PLASTICS, S.A. UBE AMMONIA INDUSTRY, LTD. UBE FILM, LTD. Specialty Chemicals & Products UBE-NITTO KASEI CO., LTD. UBE CONSTRUCTION MATERIALS SALES CO., LTD. Cement & Construction Materials UBE SHIPPING & LOGISTICS, LTD. KANTO UBE CONCRETE CO., LTD. UBE MACHINERY CORPORATION, LTD. Machinery & Metal Products UBE STEEL CO., LTD. UBE TECHNO ENG. CO., LTD. Energy & Environment UBE C&A CO., LTD.

Business
FY12 3Q
Manufacture and sales of caprolactam and polyamide resin Manufacture and sales of caprolactam. Manufacture and sales of polybutadiene Manufacture and sales of polyamide resin Manufacture and sales of ammonia Manufacture and sales of plastic-film products Manufacture and sales of electronics & IT materials, FRP, industrial materials and fiber-reinforced plastics Sales of construction materials Domestic shipping, harbor transportation, shipping-agent services and customs clearing Manufacture and sales of ready-mixed concrete Manufacture and sales of industrial machinery and bridges Manufacture and sales of cast iron, steel products and rolled steel billets Service and maintenance of industrial machinery and equipment Sales of imported steaming coal from Australia and other countries

32.1 21.7 10.7 8.5 10.2 7.2 9.9 39.0 13.3 9.2 24.4 12.6 9.4 19.5

↓ → ↓ → → → → → ↑ ↑ ↑ → ↑ →

Note:↑↓:Represent an increase or decrease of over 100 million JPY

27

This presentation material contains forward-looking statements concerning UBE’s future plans, strategies, and performance. These forward-looking statements are not historical facts; rather, they represent assumptions and beliefs based on economic, financial, and competitive date currently available. Forward-looking statements include information preceded by, followed by, or that include the words“project”,“predicts”,“expects”,“forecasts”,“could”,“may”,or similar expressions. Furthermore, they are subject to a number of risks and uncertainties which include, but are not limited to, economic conditions, fierce competition in this industry, customer demand, tax rules and regulations. Readers of this presentation material are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from expectations.

Sign up to vote on this title
UsefulNot useful