Fiscal Year 2012 Results i 2012 and Fiscal Year 2013 Plan and - - PowerPoint PPT Presentation
This notice has been translated from the original notice in Japanese. In the event of any discrepancy the original in Japanese shall prevail In the event of any discrepancy, the original in Japanese shall prevail. Fiscal Year 2012 Results i
This notice has been translated from the original notice in Japanese. In the event of any discrepancy the original in Japanese shall prevail
In the event of any discrepancy, the original in Japanese shall prevail.
April 26, 2013 TOTO
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Net Sales: Increase (3years running)
■Increased sales and profit Increased profit due to the favorable performance of the Domestic Remodeling Business and a reduction in costs
Operating profit: Recurring profit: Net profit: Increase (4 years running) Increase (4 years running) Increase (4 years running)
Operating profit recovered to a pre-Lehman shock level <Domestic Housing Equipment Business>
I d l d fi f b h h R d li d N H i B i d l h hi d ・Increased sales and profit from both the Remodeling and New Housing Businesses due to sales growth achieved against the backdrop of the recovery in the housing market, as well as the progress made in cost reductions *New construction: 880 thousand houses New construction on a delivery basis: 860 thousand houses
<Overseas Housing Equipment Business>
・Despite a slowdown in the Chinese real estate market and also market stagnation in some parts of Asia and Oceania, sales increased in every market. Results were also affected by fluctuations in foreign currency exchange , y y g y g rates, but despite all these factors the Company increased overall sales and profit in its overseas market (on a Japanese-yen basis).
<New Domain Business> <New Domain Business>
・Both sales and profit decreased in the Ceramics Business due to a prolonged market-correction phase ・Sales decreased in the Environmental Construction Materials Business as a result of a change to the product mix of exterior construction materials by house manufacturers, but account deficit narrowed by improving productivity and other efforts productivity and other efforts.
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■Financial results ■Financial results
YoY Difference
Y billion, rounded down
Result Result +23.6 (+5%)
(%)
452.6 476.2 +4.6 (+25%) 6 5
23.3 18.7 +6.5 (+34%) 19.5
3 9 26.0 3 6 +0 3 +7.7 (+83%) Net Profit
9.2
+0.3 16.9 (+83%) Capital Investment 32.2 19.9
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Depreciation 18.3 19.5
■Sales and profit by business segment
Y billion rounded down
476.2 452 6 ＜Net Sales＞ ＜Operating Profit＞ ■Sales and profit by business segment
Y billion, rounded down
452.6 23.3 18.7
Remodeling Remodeling
New Housing
FY11 FY12 Y Y(%)
New Housing
FY11 FY12 YoY(%)
Domestic H.E. 375.4 386.8 +3% (Remodeling) 248.4 258.1 +4% (New Housing) 126.9 128.6 +1%
FY11 FY12 YoY
Domestic H.E. 17.2 21.6 +4.4 (Remodeling) 14.2 18.2 +4.0 (New Housing) 2.9 3.4 +0.5 Overseas H.E. 62.6 75.1 +20% New Domain 14.4 14.1
Others 0.1 0.1 +9% Overseas H.E. 7.0 8.1 +1.1 New Domain
Others
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Increased sales and profit in both the domestic (New Housing and Remodeling) and overseas markets
■Sales per products in domestic housing equipment
■Sales per products in domestic housing equipment
Y billion, rounded down
※
※: Internal sales or sales transferred between different segments
Strong sales for all products.
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■Sales and profit per region in Overseas housing equipment ■In Local Currency Currency
FY11 FY12 YoY(%) FY11 FY12 YoY
Net Sales Operating Profit ■Sales and profit per region in Overseas housing equipment Americas
$ million
191.9 206.6 +8%
3.8 +12.1 China
Billion Chinese yuen
2.7 2.9 +6% 0.5 0.5
Asian & Oceanian R i
$ million
153 8 163 2 +6% 15 0 9 5
Region
$ million
153.8 163.2 +6% 15.0 9.5
Europe
€ million
19.4 23.2 +19%
■In Japanese Yen
(Y billion, rounded down)
Americas
Y billion
14.9 17.8 +20%
0.3 +0.9 China
Y billion
33.7 40.4 +20% 7.2 7.8 +0.5
Asian & Oceanian Region
Y billion
11.9 14.1 +18% 1.1 0.8
g
Europe
Y billion
1.9 2.6 +36%
Total
Y billion
62.6 75.1 +20% 7.0 8.1 +1.1
Exchange rates
1$ 77.7 86.6
1 Chinese yuen
12.3 13.9 1 € 100.7 114.7
Increased sales in every region
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■Cause of increase/decrease of Operating Profit
FY12
■Cause of increase/decrease of Operating Profit
Y billion, rounded down
U l C t R d ti +4 3 FY12 Result
Usual Cost Reduction +4.3
V Plan Cost Reduction +4.5
+3.4
+8.8
+0.4 Profit and loss in Overseas Housing Equipment Business +1.1
0.8
Respond to the expansion of volume zone market
Others
+4.6
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■Plan to achieve increased sales and profit The Company is aiming to increase sales, increase operating profit, increase recurring profit, and increase net profit in its Domestic Housing Equipment B i O H i E i t B i d N D i B i Business, Overseas Housing Equipment Business, and New Domain Business <Domestic Housing Equipment Business>
・Aiming to increase sales by 5% by strengthening the remodeling strategy through the TDY Aiming to increase sales by 5% by strengthening the remodeling strategy through the TDY Green Remodel Fairs and the launch of new products, as well as continuing with the green remodeling proposal that is focused on showrooms *New construction: 930 thousand houses New construction on a delivery basis: 920 thousand
<Overseas Housing Equipment Business>
・Aiming to increase sales in all regions including the Americas China the Asian and Oceania ・Aiming to increase sales in all regions including the Americas, China, the Asian and Oceania region, and Europe ・Progressing the construction of a production system to respond to the expansion of demand from China and the Asian and Oceania region
<New Domain Business>
・Aiming to increase sales and profit in both the Environmental Construction Materials B i d th C i B i
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Business and the Ceramics Business
Y billion rounded down
1H Plan 2H Plan Total FY12 Result FY14 FY13 YoY Difference (%)
Y billion, rounded down 1H Plan 2H Plan Total
+40.8 (+9%)
240.5
(%)
Net Sales
476.2
276.5 ( ) +5.7 (+24%)
8.7
23.3
Operating Profit
20.3 +4.0 (+15%) 20.6
Recurring Profit
9.4
26.0
+3.1 7 4
12 6
Net Profit Extraordinary Loss
16 9
(+18%)
Capital Investment
19.9 21.5 12.3 33.8 7.4 12.6
Net Profit
16.9
Depreciation
19.5 7.2 8.0 15.2
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■Sales and profit by business segment
Y billion rounded down
＜Net Sales＞ ＜Operating Profit＞ ■Sales and profit by business segment
Y billion, rounded down
517.0 476.2 29.0 23.3
Remodeling Remodeling
New Housing
FY12 FY13 Y Y(%)
New Housing
FY12 FY13 YoY(%)
Domestic H.E. 386.8 406.5 +5% (Remodeling) 258.1 271.7 +5% (New Housing) 128.6 134.8 +5%
FY12 FY13 YoY
Domestic H.E. 21.6 23.1 +1.5 (Remodeling) 18.2 19.5 +1.3 (New Housing) 3.4 3.6 +0.2 Overseas H.E. 75.1 91.7 +22% New Domain 14.1 18.4 +31% Others 0.1 0.2 +13% Overseas H.E. 8.1 9.8 +1.7 New Domain
+2.2 Others
+0.2
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Aiming to increase sales and profit in the Domestic Business (New Housing and Remodeling), Overseas Business, and New Domain Business.
■Sales per products in domestic housing equipment
■Sales per products in domestic housing equipment
Y billion, rounded down
※
※ : Internal sales or sales transferred between different segments
Aiming to increase sales in all products
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■Sales and profit per region in Overseas housing equipment
■In Local Currency Currency
FY12 FY13 YoY FY12 FY13 YoY
Net Sales Operating Profit
■Sales and profit per region in Overseas housing equipment
Americas
$ million
206.6 223.8 +8% 3.8 8.1 +4.3 China
Billion Chinese yuen
2.9 3.1 +7% 0.5 0.5
Asian & Oceanian Region
$ million
163.2 174.3 +7% 9.5 16.2 +6.7 Europe
€ million
23.2 34.3 +48%
+4.0 ■In Japanese Yen Americas
Y billion
17.8 21.8 +22% 0.3 0.7 +0.4
(Y billion, rounded down)
China
Y billion
40.4 48.8 +21% 7.8 8.0 +0.2
Asian & Oceanian Region
Y billion
14.1 16.7 +19% 0.8 1.5 +0.7 Europe
Y billion
2.6 4.3 +63%
+0.4 Europe 2.6 4.3 63% 0.9 0.4 0.4 Total
Y billion
75.1 91.7 +22% 8.1 9.8 +1.7
Exchange rates
1$ 86.6 97.0
1 Chinese yuen
13.9 15.7 1 € 114.7 127.0
Sales increased in each region, but profit in local currency decreased in China due to an increase in labor costs and investments. Sales and profit increased in Japanese-yen due to currency conversions.
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■Cause of increase/decrease of operating profit
Y billion, rounded down
■Cause of increase/decrease of operating profit
,
Cause of Increase/Decrease Positive Usual Cost Reduction
Factors V Plan Cost Reduction
Increase in Remodeling Sales
Cost Reduction Increase in Remodeling Sales
Increase in New housing sales
Profit and loss in Overseas Housing Equipment Business
Profit and loss in the New Domain Business
Change in the standard for the depreciation method
N ti I i t i l i
Negative Increase in material prices
Factors V Plan investments
Strengthening investment sales
Increase in labor cost
Respond to the expansion of volume zone market
Others
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Others
TOTAL
Ch i th d i ti th d f fi d t d d ti f th
Change in the depreciation method for fixed assets and adoption of the straight-line method Partial review on useful lives (From 2 years to 3 years for molds and from 9 years to 15 years for sanitary ware production facilities, etc.)
(1) Adoption of appropriate periodic accounting of profit and loss in line with actual conditions with actual conditions
・Stable generation of capital investment effects and related contributions to profit over the period
・Longer useful lives of facilities due to adoption of advanced facilities and improvement in maintenance technologies
(2) Unification of the accounting method with that used in our overseas business (straight-line method) ( g )
Approximately 4 billion yen (FY 2013) Approximately 4 billion yen (FY 2013)
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■Dividend
■Dividend
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Remodeling strategy (ongoing)
(2)Strengthening of the remodeling business
Remodeling strategy (ongoing)
(2)Strengthening of the remodeling business for the elderly (1) Green Remodeling
Proposal of a new concept, “Remodeling as Preparation,” in conjunction with Green An evaluation of and proposal for living from three perspectives; p , j Remodeling evaluations from three perspectives; “healthy living,” “a sturdy home,” and “CO2 reduction”
Current status After remodeling Water saving Energy saving Ventilation performance Heat- insulation performance
(3) Activities for used-housing distribution
Strengthening of remodeling measures generated
Ease of cleaning (toilets and toilet seats) User- friendliness Crime- prevention performance Ease of cleaning (wall and floor materials)
g g g g due in conjunction with used-housing transactions
Remodeling at the time of purchase Remodeling before sales Real estate transactions Flow of Green Remodeling Proposal
Comfort Barrier-free
transactions Remodeling actors Real-estate Renovators and Remodeling Developers
Request confirmation and hearing GR evaluation (before) Proposal and report Contract Renovation and construction
引渡し
Delivery House records I f ti After sales service Acceptance of GR evaluation (after) M i t
Real estate agents Renovators and resellers Remodeling Club Stores and house manufacturers 引渡し
Delivery Information management After-sales service repeated orders Maintenance management plan
*GR = Green Remodeling
A business model of expansion through our remodeling strategy from 2012 to 2014 for A business model of expansion through our remodeling strategy from 2012 to 2014 for
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Remodeling policy
Remodeling policy
The “TDY Green Remodel Fair 2013” enables visitors to experience the benefits and technologies of “Green Remodeling”
Discover anew living in comfort!
Approximately 60,000 people (at four sites in total)
Tokyo site, TDY Green Remodel Fair 2013
Schedule Venue Schedule Venue Tokyo April 19 and 20 (Friday and Saturday), 2013 Tokyo Big Sight Nagoya May 17 and 18 (Friday and Saturday), 2013 Port Messe Nagoya Osaka June 21 and 22 (Friday and Saturday), 2013 INTEX Osaka
The end users experience the importance of remodeling for long, continuous anxiety-free living
Fukuoka August 2 and 3 (Friday and Saturday), 2013 Marine Messe Fukuoka
The end users experience the importance of remodeling for long, continuous anxiety free living at the “TDY Green Remodel Fair,” the biggest event for the first half of 2013
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Bathroom Business Kitchen Business
Bathroom Business
The highest quality
Kitchen Business
The highest quality bathroom in TOTO’s history, improving beauty and comfort
Yukuhashi Plant (Fukuoka) Koka Plant (Shiga) Mobara Plant (Chiba) Koka Plant (Shiga) Mobara Plant (Chiba)
without losing user- friendliness and ease of cleaning
Yukuhashi Plant (Fukuoka)
Production at the Yukuhashi Plant to finish at the end of April 2014 (to be used as a logistics base in western Japan)
Continuous adoption of the floor
Independent delivery by Cleanup Logistics
Cooperative delivery
(Nationwide development to be finished by the end of 2013) platform since the launch of the new product in August 2012 → Reduction of large-parts by approximately 50%
→ CO2 emissions reduced by approximately 300 tons per year (compared with 2010)
Independent delivery by TOTO High Living by Cleanup Logistics
Coope ve de ve y through the network of Cleanup Logistics
Launch of a new product in August in the Bathroom Business Aiming to decrease loss in the
by approximately 50%
(compared with 2010) → Transportation costs reduced by approximately 20%
Launch of a new product in August in the Bathroom Business. Aiming to decrease loss in the Kitchen Business through continued reforms to the business structure.
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Business environment: A
i f t f d ft th fi t h lf f 2013
Business environment: A recovery is forecast for and after the first half of 2013,
in spite of the impact of the slowdown in the real estate market in 2012.
Business policies:
(April 2013)
Sales policies:
(ongoing)
sales networks and flagship showrooms this year, both in the inland area and northeastern cities
northeastern cities
Change in net sales in the inland area → For manufacturing to meet local needs and to accelerate product development
Water Environment Fund”
150
116 133
Water Environment Fund
use of water conservation instruments
areas
50 100
Maintaining and improving the brand power for the business in China
2011 2012 2013 Plan (Index: 100 in 2011) → To be an environmental-contribution company that is rooted in local communities areas
Maintaining and improving the brand power for the business in China through continuous sales policies and activities from a long- and mid-term perspective
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Business in the Americas Business in Europe
(Overseas Housing Equipment Business:The Americas and Europe) Business in the Americas Business in Europe
with bidet functions
sales through continuous launch of new products
(1) Partnership with Villeroy & Boch a German company
(Left) Installation of Washlet technology into a new toilet seat with bidet functions, manufactured by Villeroy &
(1) Partnership with Villeroy & Boch, a German company (March 2013)
market for toilet seats with bidet functions together with TOTO Washlet (right).
“NEOREST” equipped (2) “NEOREST” with the A tili ht The “1G (gallon) toilet” (3) Development of dealership t k i th E NEOREST equipped with Actilight, a new technology* to be launched (September 2013) new Actilight technology* to be launched (August 2013) The 1G (gallon) toilet A water conserving toilet seat that uses only 3.8 L
(launched in September networks in three European countries (Germany, the UK, and France)
Change in the number of dealers (Index: 100 in 2011)
improving productivity at the Mexican plant
( au c ed Septe be 2012)
100 200 300
170 230 (Index: 100 in 2011)
p ov g p oduc v y e e c p
2011 2012 2013 (Plan) *Refer to the next page for “NEOREST” with new Actilight technology.
Increasing sales and profits in the Americas and reducing the loss in Europe
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The flagship product of the TOTO Group
The flagship product of the TOTO Group “NEOREST,” a washlet bidet toilet (with Actilight, a new photo-catalyst technology)
Product “NEOREST,” the top product Business strategy Global development of new technology
A i E
To be launched in September 2013 To be launched in August 2013
“Actilight” technology: In order to keep the toilet clean for a long time, photo-catalytic layers are burnt on t th f f th t il t b l d
Americas Europe T il d t ti f i l t t
to the surface of the toilet bowl and a UV light is activated for a period
decomposes organic particles on the surface of the toilet bowl and thereby keeps bacteria from reproducing
“NEOREST AC” “NEOREST 750H”
Tailored to satisfy regional tastes (localization of planning and development)
reproducing.
The launch of TOTO Group’s environment-conscious flagship product as the first of its kind The launch of TOTO Group s environment conscious flagship product as the first of its kind in Europe and the Americas
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Business environment
(Overseas Housing Equipment Business: Asia and Oceania) Business environment
l i A i d O i
year sales in Asia and Oceania
main products year
(scheduled to be operational from 2014)
* Topics: Participation in the “ACE TECH 2012” Exhibition
slowdown last year due to tightening policies by the Vietnam Government.
( p )
incorporate individually scattered demand more firmly Displayed water conserving toilet seats and water conserving faucets and fittings, as well as the new NEOREST and new Washlet products
→ P ti i ti i th hibiti h l d t i Occ s o p ojec de ys d co uous s g
→ Participation in the exhibition helped to increase recognition of TOTO
Aiming to increase sales and profits by responding to the business environments in each region
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E
i t l B ildi M t i l B i
Ceramics Business
Environmental Building Materials Business
Hydrocera P iti d l t f l bi l t d d t
Sales expansion with a focus on prioritized areas
* Increase in business inquiries for
Ceramics Business
Moving on to a growth path by going with the flow
(toilets and bathrooms) B to B (domestic and overseas)
Exterior Increase in business inquiries for precise ceramic components for next- generation semiconductor manufacturing equipment due to the
customers
house manufacturers
80 100 (100 million yen)
Net sales Operating
91 88 97
60 80 100
(100 million yen)
Net sales Operating
53 52 86 TOTO Fine Ceramics decided not to restart
20 40 60
p g income
−15 −15
2011 A l
−8
20 40 60
p g income
−20 −13 −5
Fuel cell
Aiming to commercialize this business as soon as possible by promoting the manufacture and development of i ti ll (SOFC) hi h i t TOTO t h l d ti
2012 Actual 2013 Plan 2011 Actual 2012 Actual 2013 Plan 2011 Actual
ceramic power generation cells (SOFC), which use proprietary TOTO technology, and power generation modules, which are the core component of fuel cells
Aiming to establish a profitable business through selection and concentration
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Progress made in V Plan activities Examples of V Plan activities up to
Progress made in V Plan activities
Achieved new reduction in costs of a total 10.5 billion yen for the past 3 years
→ New reduction of 3.1 billion yen expected for the current
Examples of V Plan activities up to the present time
1) Platform toilets (2011)
term 3.1 billion yen 4.5 billion yen (Before implementation) Part number 14 ↓ (After implementation) Part number 2 2.3 billion yen 3.7 billion yen yen
2) R t t i f d ti b (2012)
20% decrease in the inventory of toilets for houses*
*Target part numbers only
2012 Actual 2011 Actual 2010 Actual 2013 Plan
2) Restructuring of production bases (2012)
Corporate split-up of the faucet and accessories business → Establishment of TOTO Aquatechno Ltd. (new company) Corporate split-off of the sanitary ware business
Main activities in the past P d ti
Platform adoption
Restructuring of production bases
Consolidation of TOTO Enpla and TOTO Platec → Establishment of TOTO Platechno Ltd. Corporate split off of the sanitary ware business → Consolidation into TOTO Sanitechno Ltd.
Production innovation
Supply chain innovation
Purchase innovation
Logistics innovation
Continuing with cost reductions, which have progressed more quickly than planned through
Cooperation among individual manufacturing group companies with the aim of further strengthening the manufacturing system
innovation
V Plan innovative activities, and the TOTO Group as a whole to continue to take on the challenge of achieving reductions
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TOTO GREEN CHALLENGE
Manufacturing Social contribution
TOTO GREEN CHALLENGE
Products and services
TOTO aims to provide customers with its main products “that can reduce CO2 emitted from bathroom and kitchen fixtures by 50% or more (compared with emission in 1990).” TOTO aims to create opportunities for implementing green activities at all business establishments without exception, so that all employees of the TOTO Group “participate” i l i i i TOTO is achieving CO2 reductions all over the world in its production, logistics, and sales promotion activities. In Japan: Reduction by 45% compared with (kg/year) ions
(People) in green volunteer activities. p y p emissions in 1990 Green Volunteer Participants Goal −43% 3136 −43% −44% −45% −50% Goal −40% 41% 41% 42% 45% 21.7 CO2 emissions ( CO2 emissi (ten thousand to −43% −44% −45% −50% −41% −41% −42% −45%
Standard Actual Goal Goal Goal Standard Actual Goal Goal Goal Goal Goal Goal Actual
Global spread of air-purifying Hydrotect (NOx elimination) Goal of 2017 Green volunteer participation rate: 100% In overseas countries Specific energy consumption: 2% reduction/year
1990 2012 2013 2014 2017 1990 2012 2013 2014 2017 2013 2014 2017 2012
Human-resource development
Achieved goals for fiscal 2012. Aiming to achieve V Plan 2017 goals, Achieved goals for fiscal 2012. Aiming to achieve V Plan 2017 goals, with the Green Challenges as the driving force.
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This presentation material contains forward-looking statements based on assumptions estimates and plans as of April 26 2013 assumptions, estimates and plans as of April 26, 2013. Actual performance may differ materially from these forward-looking statements due to risks and undermined factors arising from changes in the world economy, competition and foreign currency exchange rates. competition and foreign currency exchange rates.