fy 2019 financial results briefing material€¦ · eur 123 yen -8 yen rub 1.7 yen -0.1 yen tsr20*...

FY 2019 Financial Results

Briefing Material

February 14, 2020

The Yokohama Rubber Co., Ltd.

Copyright(C) THE YOKOHAMA RUBBER CO., LTD. 2

Scope of Consolidation, etc.

■Scope of consolidation

Consolidated subsidiaries 121 companies

(2 less than at the end of previous fiscal year)

(Breakdown of change)

+3 companies

-5 companies

Japan -4 companies

Tire indirectly owned sales subsidiary

Asia +2 companies

Yokohama Tire Korea Co., Ltd. (Korea/Tire sales company) and one other company

Europe +1 company

Yokohama France SAS (France/Tire sales company)

Europe -1 company

Yokohama Industrial Products Europe GmbH (Germany/MB sales company)


Financial Results for FY 2019


Profit and Loss (Full Year)

Exchange

Rates

US$ 109 yen 110 yen (previous year) -1 yen

EUR 122 yen 130 yen (previous year) -8 yen

RUB 1.7 yen 1.8 yen (previous year) -0.1 yen

TSR20* 140 cents 136 cents (previous year) +4 cents

WTI 57 dollars 65 dollars (previous year) -8 dollars

*SICOM TSR20 1M

2019

Jan.-Dec.

2018

Jan.-Dec.

Sales revenue 650.5 650.2

Business profit*1

(Business profit margin)

50.1(7.7%)

59.3(9.1%)

Operating profit(Operating profit margin)

58.6(9.0%)

53.5(8.2%)

Profit *2 42.0 35.6

ChangeChange

(%)

+0.2 +0.0%

-9.1(-1.4%)

-15.4%

+5.1(+0.8%)

+9.5%

+6.3 +17.8%

*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

-9.9 +10.2

-2.8 -6.3

-2.9 +7.9


Business Segment (Full Year)

2019

Jan.-Dec.

2018

Jan.-Dec.

Sale

s re

ven

ue

Tires 451.7 454.8

MB 119.3 117.8

ATG 70.8 68.7

Other 8.6 9.0

Total 650.5 650.2

ChangeChange

(%)

-3.1 -0.7%

+1.6 +1.3%

+2.1 +3.1%

-0.3 -3.6%

+0.2 +0.0%

Bu

sin

ess p

rofit

Tires 30.8 42.3

MB 8.3 7.4

ATG 10.4 8.5

Other 0.5 1.1

Intersegment

eliminations0.2 0

Total 50.1 59.3

-11.5 -27.3%

+0.9 +12.4%

+1.9 +23.0%

-0.6 -54.1%

+0.1 –

-9.1 -15.4%

(billion yen)

Exchange

rate

impact

Change

excluding

impact of

exchange rates

-7.9 +4.8

-1.2 +2.8

-0.8 +2.9

-0 -0.3

-9.9 +10.2

-2.6 -8.9

-0.1 +1.0

-0.1 +2.1

-0 -0.6

– +0.1

-2.8 -6.3


Factor Analysis of Business Profit

2019 Full Year(billion yen)

Factors that boosted

business profit

Factors that reduced

business profit

Tires

-11.5

MB/Others+0.5

ATG

＋1.9

Business profit: -9.1billion yen2018 2019

Business

profit

for

previous

fiscal year

Businessprofit

for 2019

Fixed cost

Sales volume

Raw material

prices

Exchange rate

difference

Prices/ MIX

ATG OtherMB

Production costs

59.3 50.1

-2.6

+3.1

-4.1

-3.1

-6.5-1.9 +1.9

+0.9 -0.5

(Breakdown)

Natural rubber +0.6

Synthetic rubber +2.2

Compound agent -0.3

Other +0.6

(Breakdown)

Sales volume +2.9

Variable cost -3.4

US$ 109 yen 110 yen(previous year) -1 yen

EUR 122 yen 130 yen(previous year) -8 yen

RUB 1.7 yen 1.8 yen(previous year) -0.1 yen

-0.5


Profit and Loss (Quarterly)

Exchange

Rates

US$ 109 yen -1 yen

EUR 123 yen -8 yen

RUB 1.7 yen -0.1 yen

TSR20* 142 cents +2 cents

WTI 57 dollars -10 dollars

US$ 109 yen -4 yen

EUR 120 yen -9 yen

RUB 1.7 yen +0.0 yen

137 cents +10 cents

57 dollars -3 dollars

US$ 109 yen -1 yen

EUR 122 yen -8 yen

RUB 1.7 yen -0.1 yen

140 cents +4 cents

57 dollars -8 dollars

2019

Jan.–Sep.

YoY

Change

Sales revenue 465.7 +4.9

Business profit*1


25.8(5.5%)

-9.8(-2.2%)


33.4(7.2%)

+6.4(+1.4%)

Profit*2 28.3 +12.0

2019

Oct.–Dec.

YoY

Change

184.7 -4.7

24.3(13.2%)

+0.6(+0.7%)

25.2(13.6%)

-1.3(-0.4%)

13.7 -5.7

2019

Jan.-Dec.

YoY

Change

650.5 +0.2

50.1(7.7%)

-9.1(-1.4%)

58.6(9.0%)

+5.1(+0.8%)

42.0 +6.3

(billion yen)



*SICOM TSR20 1M


Business Segment (Fourth-Quarter)

2019

Oct.-Dec.

2018

Oct.-Dec.

Sale

s re

ven

ue

Tires 133.3 137.7

MB 32.2 33.2

ATG 17.2 16.3

Other 2.0 2.2

Total 184.7 189.4

ChangeChange

(%)

-4.4 -3.2%

-1.0 -3.0%

+0.8 +5.1%

-0.1 -6.1%

-4.7 -2.5%

Bu

sin

ess p

rofit

Tires 19.0 18.5

MB 2.6 2.8

ATG 2.8 2.1

Other -0.3 0.2

Intersegment

eliminations0 0

Total 24.3 23.7

+0.5 +2.7%

-0.2 -6.3%

+0.7 +33.8%

-0.5 –

+0 –

+0.6 +2.6%

(billion yen)

Exchange

rate

impact

Change

excluding

impact of

exchange rates

-2.6 -1.8

-0.6 -0.4

-0.7 +1.5

-0 -0.1

-3.8 -0.9

-0.4 +0.9

-0.1 -0.1

-0.1 +0.8

-0 -0.5

– +0

-0.6 +1.2


Three Quarters (Jan.-Sep.)

Business

profit

for

previous

fiscal year Businessprofit

for 201935.625.8

Fixed cost

Sales

volumeRaw material

prices

Exchange rate

difference

Prices/ MIX

ATGOtherMB

Production costs

-2.3+1.4 -0.4

-4.6

-5.0 -1.2 +1.2+1.1 -0

(Breakdown)

Natural rubber +0.9


Compound agent -0.9

Other +0.4

Business profit: -9.8 billion yen

(Breakdown)

Sales volume +2.3

Variable cost -2.7



RUB 1.7 yen 1.8 yen(previous year) -0.1 yen

Business profit: +0.6 billion yen

Fourth-Quarter (Oct.-Dec.)

Businessprofit

forprevious

fiscal year

Businessprofit

for 2019

23.724.3

-0.4 +1.7 -0.1 +1.5 -1.5 -0.7 +0.7 -0.2 -0.4

(Breakdown)Natural rubber -0.3Synthetic rubber +1.2Compound agent +0.6Other +0.2

Fixed costSales volume

Raw material

pricesExchange rate

differencePrices/ MIX

ATG OtherMB

Production costs



RUB 1.7 yen 1.7 yen(previous year) +0.0 yen

(Breakdown)

Sales volume +0.6

Variable cost -0.7



Dec. 31, 2019 Dec. 31, 2018

Current assets 331.5 335.5

Non-current assets 576.0 520.3

Total assets 907.6 855.8

Liabilities

Equity

479.9

427.7

473.4

382.4

Total liabilities and equity 907.6 855.8

Change

-4.0

+55.7

+51.7

+6.5

+45.3

+51.7

Interest-bearing debt 239.9 260.4

Ratio of equity attributable

to owners of parent46.2% 43.7%

D/E ratio 0.57 0.70

-20.5

+2.5%

-0.12

(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.

11

D/E ratio

379.8

315.6

0.83

0.68

374.0

260.4

0.70

0.61

338.5 335.9

0.99

0.83

325.7

194.9

0.60

0.47

Net D/E ratio

Interest-bearing debt (billion yen)

418.9

239.9

0.57

0.51


State of Cash Flows

2019

Jan.-Dec.

2018

Jan.-Dec.

CF from operating activities 75.4 82.8

CF from investing activities -43.6 -43.1

Free CF 31.7 39.7

CF from financing activities -35.5 -64.9

Closing balance of cash and

cash equivalents27.9 31.7

Change

-7.4

-0.5

-8.0

+29.4

-3.8

(billion yen)


Capital expenditures Depreciation (billion yen)

Capital Expenditures and Depreciation

51.0

35.9 39.946.9

51.3

31.433.2

34.6 36.8 36.0

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 (planned)

40.540.0

JGAAP IFRS

* Figures for FY2019 and FY2020 do not include the impact of adopting IFRS 16 (Lease).


Earnings Forecast for FY 2020


FY2020 Profit and Loss Projections

Exchange

Rates

US$ 109 yen 109 yen (previous year) -0 yen

EUR 120 yen 122 yen (previous year) -2 yen

RUB 1.7 yen 1.7 yen (previous year) +0.1 yen

TSR20* 139 cents 140 cents (previous year) -1 cents

WTI 58 dollars 57 dollars (previous year) +1 dollars

*SICOM TSR20 1M

2020

forecast

2019

result

Sales revenue 660.0 650.5

Business profit*1


55.0(8.3%)

50.1(7.7%)


54.5(8.3%)

58.6(9.0%)

Profit *2 38.0 42.0

ChangeChange

(%)

+9.5 +1.5%

+4.9(+0.6%)

+9.7%

-4.1(-0.7%)

-6.9%

-4.0 -9.5%



(billion yen)

Exchange

rate

impact

Change

excluding

impact of

exchange rates

-0.3 +9.8

-0.1 +5.0

-0.1 -4.0

*These projections do not incorporate the potential effect of the coronavirus outbreak on Yokohama’s fiscal performance.


Forecast for Business Segment (Full Year)

2020

forecast

2019

result

Sale

s re

ven

ue

Tires 457.0 451.7

MB 119.0 119.3

ATG 75.5 70.8

Other 8.5 8.6

Total 660.0 650.5

ChangeChange

(%)

+5.3 +1.2%

-0.3 -0.3%

+4.7 +6.7%

-0.1 -1.6%

+9.5 +1.5%

Bu

sin

ess p

rofit

Tires 35.0 30.8

MB 8.0 8.3

ATG 11.0 10.4

Other 1.0 0.5

Intersegment

eliminations– 0.2

Total 55.0 50.1

+4.2 +13.8%

-0.3 -3.9%

+0.6 +5.7%

+0.5 +103.1%

-0.2 –

+4.9 +9.7%

(billion yen)

Exchange

rate

impact

Change

excluding

impact of

exchange rates

-0.3 +5.6

-0 -0.3

-0 +4.7

+0 -0.1

-0.3 +9.8

-0.1 +4.3

-0 -0.3

-0 +0.6

+0 +0.5

– -0.2

-0.1 +5.0



2020 Full Year Forecast(billion yen)

Factors that boosted

business profit

Factors that reduced

business profit

Tires+4.2

MB/Others

+0ATG

＋0.6

Business profit: +4.9 billion yen2019 2020

Business

profit

for

previous

fiscal year

Businessprofit

for 2020

Fixed costSales volumeRaw material

prices

Exchange rate

difference

Prices/ MIXATG OtherMB

Production costs

50.1

55.0

-0.1 +5.1

-4.1

-3.0 +2.2 -2.0 +0.6 -0.3 +0.4

(Breakdown)

Natural rubber +0.3


Compound agent +2.4

Other +1.1



RUB 1.7 yen 1.7 yen(previous year) +0.1 yen

+2.0

(Breakdown)

Sales volume +2.8

Variable cost -0.8

Copyright(C) THE YOKOHAMA RUBBER CO., LTD.

Dividends and Payout ratio

18

Yokohama carried out a one-for-two share merger effective July 1, 2015. The company has accounted for that

merger in calculating the dividend payable to shareholders of record as of 2012-2015.

Dividends per share Payout ratio

FY2014

JGAAP

FY2015

JGAAP

FY2016

JGAAP

FY2013

JGAAPFY2017

JGAAPFY2017

IFRS

FY2018

IFRS

FY2019

IFRS

FY2012

JGAAPFY2020

IFRS

(forecast)

¥40

¥44

¥52 ¥52 ¥52

¥62 ¥62 ¥62¥64 ¥64

20.4% 20.3%20.7%

23.0%

44.4%

28.2%

24.9%27.9%

24.5%27.0%


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.

fy 2019 financial results briefing material€¦ · eur 123 yen -8 yen rub 1.7 yen -0.1 yen tsr20*...

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