Post on 10-Apr-2020
Copyright © TOTO LTD. All Rights Reserved.
April 26, 2019
Fiscal Year 2018 Results
This notice has been translated from the original notice in Japanese.
In the event of any discrepancy, the original in Japanese shall prevail.
Copyright © TOTO LTD. All Rights Reserved.
1. Financial Result for FY 2018
2.Topics
3.Financial Plan for FY 2019
Contents
Copyright © TOTO LTD. All Rights Reserved. 1
Summary of Consolidated Financial Results for 2018
Highlights
New business domains: Sales increased but profits decreased
◆ Remodeling business increased sales and decreased profits. ◆ New Housing business decreased in sales and profits.
◆Both sales and profits decreased in the market in China due to the deterioration of the real estate market in major urban areas and delays in the launch of new products. ◆In Asia and Americas, sales increased but profits decreased.
Decreased sales and profit.
◆ In ceramic business, sales increased, but profits decreased due to worsening productivity.
Global housing equipment business (Japan): Decreased sales and profit.
Global housing equipment business (overseas): Decreased sales and profit.
Copyright © TOTO LTD. All Rights Reserved.
Financial results
■Exchange rates
Unit: Y billion
Plan vs.
Plan
592.0 -6.0 (-1%)
41.0 [6.9%]
-0.9 (-2%)
43.5 -0.4 (-1%)
32.0 +0.3 (+1%)
7.1% -0.0pt
9.3% +0.3pt
FY17 FY18
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1 $ ¥113.6 ¥111.1 ¥111.0 ¥113.0 ¥108.2 ¥109.1 ¥111.4 ¥112.9
1 CNY ¥16.6 ¥16.2 ¥16.6 ¥17.1 ¥17.0 ¥17.1 ¥16.4 ¥16.3
1 € ¥121.1 ¥122.3 ¥130.4 ¥133.0 ¥133.1 ¥130.0 ¥129.6 ¥128.8
FY 2018 Results
2
FY17 FY18
YoY Influence of exchange rate
Currency-neutral basis
Net Sales 592.3 586.0 -6.3 (-1%)
-0.6 -5.7 (-1%)
Operating Profit [Operating Margin]
52.6 [8.9%]
40.1 [6.9%]
-12.5 (-24%)
+0.0 -12.5 (-24%)
Recurring Profit
54.3 43.1 -11.2 (-21%)
+1.0 -12.2 (-23%)
Profit attributable to owners of parent 36.7 32.3
-4.4 (-12%)
+1.0 -5.4
(-15%)
ROA 9.4% 7.1% -2.3pt
ROE 11.7% 9.6% -2.1pt
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< Net Sales > FY17 FY18 YoY Influence of exchange rate
Currency-neutral basis
Domestic H.E. 425.6 425.1 -0.5 (-0%)
-0.5 (-0%)
Overseas H.E. 137.9 130.4 -7.5 (-5%)
-0.4 -7.1 (-5%)
New Domain 28.4 30.2 +1.8 (+6%)
-0.2 +2.0 (+7%)
Others 0.2 0.2 -0.0 -0.0
Total 592.3 586.0 -6.3 (-1%)
-0.6 -5.7 (-1%)
3
FY 2018 Results
Sales and profit by business segment
< Operating Profit > FY17 FY18 YoY Influence of exchange rate
Currency-neutral basis
Domestic H.E. 28.6 24.4 -4.2 (-15%)
-4.2 (-15%)
Overseas H.E. 26.3 18.3 -8.0 (-30%)
+0.0 -8.0 (-31%)
New Domain 1.3 0.9 -0.4 (-26%)
-0.0 -0.4 (-25%)
Others -3.7 -3.5 +0.2 +0.2
Total 52.6 40.1 -12.5 (-24%)
+0.0 -12.5 (-24%)
Revision plan as of 2018 3Q
Difference from the
revision plan of 2018 3Q
430.0 -4.9 (-1%)
130.6 -0.2 (-0%)
31.1 -0.9
(-3%)
0.3 -0.1
592.0 -6.0 (-1%)
Revision plan as of 2018 3Q
Difference from the
revision plan of 2018 3Q
25.5 -1.1 (-4%)
18.1 +0.2 (+1%)
1.0 -0.1 (-3%)
-3.6 +0.1
41.0 -0.9 (-2%)
Unit: Y billion
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FY 2018 Results
Housing Equipment Business(Japan)
FY17 operating profit
FY18 operating profit
Cause of increase/decrease of operating profit (Breakdown of -4.2 billion yen in previous year's difference)
vs. Revised plan -1.1 -0.2 -0.0 +0.1 +0.0 +0.0 +0.0 +0.1 -1.1
Increase/decrease in sales and product range differences
Cost reduction
Influence of raw materials
increase/ decrease in labor costs
Amortization development of Production investment
Strengthening investment sales
Others
Unit: Y billion
28.6 24.4
+6.5 -2.0 -0.8
-2.0
-1.4
-0.8 -1.3 -2.4
- Increase in base pay, etc. - Improve treatment of retired re-employees
・ WASHLET Global Strategy ・Remodel related sales investment etc.
- Effects of changes in steel sheet prices - Effect of changes in copper price
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FY 2018 Results
Housing Equipment Business(Japan)
Performance by demand
FY17 FY18 YoY
Net Sales 290.1 290.5 +0.4 (+0%)
Operating Profit 24.7 21.3 -3.4 (-14%)
Operating Margin 9% 7% -2pt
Despite an increase in profits in the remodeling segment, both remodeling and new housing profits fell short of the plan.
Revision plan as of 2018 3Q
Difference from the revision plan of
2018 3Q
292.8 -2.3 (-1%)
22.0 -0.7 (-3%)
8% -1pt
FY17 FY18 YoY
Net Sales 135.4 134.6 -0.8 (-1%)
Operating Profit 3.9 3.1 -0.8 (-21%)
Operating Margin 3% 2% -1pt
Revision plan as of 2018 3Q
Difference from the revision plan of
2018 3Q
137.1 -2.5 (-2%)
3.4 -0.3 (-9%)
3% -1pt
< Remodeling>
<New Housing>
Unit: Y billion
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FY 2018 Results
Housing Equipment Business(Japan) :Results by product demand
While the remodeling market was sluggish, segment sales remained flat year-on-year due to the effect of new products, etc.
For new housing, while sales for residential houses outpaced housing starts, sales for non-residential buildings decreased due to delays in delivery.
Full year (YoY) (April to March)
Remodeling New Housing
Full year
For residential use Net Sales
+0%
Housing starts -2%
For non residential Net Sales
-2%
+1% -1%
Full year (YoY) (April to March)
FY2017 Net Sales
FY2018 Net Sales
290.1 billion yen
290.5 billion yen
(+0%)
Market growth Measures including the launch of new
products
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FY 2018 Results
Net Sales Operating Profit
FY17 FY18 YoY FY17 FY18 YoY
Sanitary Ware 89.9 90.0 +0.1
(+0%) 8.8 7.3
-1.5 (-17%)
Washlet 95.1 95.9 +0.8
(+1%) 14.1 13.1
-1.0 (-7%)
Faucet Fixtures 93.7 90.1 -3.6
(-4%) 6.6 4.4
-2.2 (-34%)
Bathrooms 94.2 97.4 +3.2
(+4%) 1.6 1.4
-0.2 (-9%)
Modular Kitchens/Basins
43.0 43.4 +0.4
(+1%) -1.9 -0.9 +1.0
Others 9.5 8.1 -1.4
(-15%) -0.5 -0.8 -0.3
Total 425.6 425.1 -0.5
(-0%) 28.6 24.4
-4.2 (-15%)
Housing Equipment Business(Japan)
Sales per Products
Sales increased except for faucet equipment. Sales of faucet equipment decreased due to changes to the timing of new product launch
and delays in delivery of non-residential buildings.
Unit: Y billion
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Both sales and profits decreased in the global housing project (overseas).
< Operating Profit >
FY17 FY18 YoY Currency-neutral
basis
China 18.1 12.3 -5.8
(-32%)
-5.9 (-33%)
Asian & Oceanian Region 6.7 5.4
-1.3 (-19%)
-1.2 (-19%)
Americas 2.5 1.6 -0.9
(-36%)
-0.8 (-34%)
Europe -1.0 -1.1 -0.1 -0.0
Total 26.3 18.3 -8.0
( -30%)
-8.0 ( -31%)
8
FY 2018 Results
< Net Sales > FY17 FY18 YoY Currency-neutral
basis
China 71.9 63.5 -8.4
(-12%) -8.8
(-12%)
Asian & Oceanian Region 31.6 31.8
+0.2 (+0%)
+0.5 (+2%)
Americas 30.7 31.3 +0.6 (+2%)
+1.0 (+3%)
Europe 3.5 3.7 +0.2
(+5%) +0.0
(+2%)
Total 137.9 130.4 -7.5 (-5%)
-7.1 (-5%)
Housing Equipment Business(Overseas)
Revision plan as of 2018 3Q
Difference from the revision plan of 2018 3Q
12.2 +0.1 (+2%)
5.6 -0.2 (-3%)
1.5 +0.1 (+8%)
-1.2 +0.1
18.1 +0.2 (+1%)
Revision plan as of 2018 3Q
Difference from the revision plan of 2018 3Q
62.3 +1.2 (+2%)
32.8 -1.0 (-3%)
31.7 -0.4 (-1%)
3.8 -0.1
130.6 -0.2 (-0%)
Unit: Y billion
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FY 2018 Results
Financial Results Unit: CNY million
Results for local subsidiaries (China)
FY17 FY18 YoY
Net Sales 4,308 3,782 -526
(-12%)
Operating Profit
1,150 800 -350
(-30%)
Operating Margin
27% 21% -6pt
Exchange rates
4Q, FY17 4Q, FY18
1CNY ¥17.1 ¥16.3
Cause of increase/decrease of operating profit
Unit: CNY million
Both sales and profits decreased due to the deterioration of productivity and import-related expenses in addition to the deterioration of the real estate market
in major urban areas and delays in new product launches.
(with FY17 as 100 )
Washlet: Growth in sales volume
* Base that does not include consolidated adjustment and common expense allocations
FY 18 FY 17
FY 17 operating income
FY 18 operating income
Increase/decrease in sales
Production cost
Strengthening investment sales
1,150 800
-23 -139
-188
100 90
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FY 2018 Results
Results for local subsidiaries (China)
(-17%)
(-8%)
(-8%)
(-11%)
(+10%)
China Total : -12%
North China 21%
East China 40%
South China 23%
West China 12%
Hong Kong 5%
YoY
Sanitary Ware -11%
Washlet -7%
Faucet Fixtures -20%
Sales decreased in areas other than Hong Kong. Sales of major products decreased.
Others 12% (FY18) 14% (FY17)
Washlet 27% (FY18) 25% (FY17)
Faucet Fixtures 17% (FY18) 18% (FY17)
Sanitary Ware 44% (FY18) 43% (FY17)
■Net sales growth by region ■Net sales growth by products
East China
North China
South China
West China
Hong Kong
■ Sales distribution ratio
■Product range comprising net sales
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10089
2017年度 2018年度
台湾42%
ベトナム33%
その他25%
11
FY 2018 Results
Taiwan FY17 FY18 YoY
Net Sales 3,606 3,438 -168 (-5%)
Operating Profit 865 796 -69 (-8%)
Operating Margin 24% 23% -1pt
Exchange rates 4Q, FY17 4Q, FY18
1 Taiwan dollars ¥3.75 ¥3.66
Unit: Million Taiwan dollars
Vietnam FY17 FY18 YoY
Net Sales (For external customers)
3,369 [2,140]
3,671 [2,056]
(+9%) (-4%)
Operating Profit 743 522 -221 (-30%)
Operating Margin 22% 14% -8pt
Unit: Billion Dong
Exchange rates 4Q, FY17 4Q, FY18
1 dong ¥0.00493 ¥0.00482
Taiwan sales and profits decreased due to the number of deliveries. Vietnam suffered a decline in both sales and profits due to the stagnation of housing market and an increase in
depreciation accompanying the start of the operation of a new plant.
Results for local subsidiaries (Asian & Oceanian Region) * Base that does not include consolidated adjustment and common expense allocations
Net sales breakdown by area Taiwan 42% Vietnam 33% Others 25%
■ Washlet: Growth in sales volume
(with FY17 as 100 )
FY 17 FY 18
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100 133
2017年度 2018年度
12
FY 2018 Results
Financial Results Unit: $ million
Results for local subsidiaries (Americas)
Cause of increase/decrease of operating profit
Unit: $ million
2016年度 営業利益
販管費 増減
2017年度 営業利益
売上増減/ 商品構成差
製造 コスト
Although sales increased due to Washlet product sales growth, profits decreased due to an increase in manufacturing costs and selling, general and administrative expenses of sanitary ware products.
FY17 FY18 YoY
Net Sales 274 283 +9 (+3%)
Operating Profit 29 24 -5 (-19%)
Operating Margin 11% 9% -2pt
Cause of increase/decrease of operating profit
Exchange rates
4Q, FY17 4Q, FY18
1$ ¥113.0 ¥112.9
* Base that does not include consolidated adjustment and common expense allocations
(with FY17 as 100 )
FY 17 operating income
FY 18 operating income
Increase/decrease in sales
Production cost
Strengthening investment sales FY 18 FY 17
29
+5
24
-1
-9
102
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FY 2018 Results
Results for local subsidiaries (Americas)
(+8%) (+0%) (+2%)
(+2%)
West 44%
Northeast 24%
Central & Southeast
22%
Canada 10%
Americas Total:+3% YoY
Sanitary Ware -3%
Washlet +16%
Faucet Fixtures +6%
Sales for sanitary ware temporarily decreased due to product changeover while sales for Washlet products delivered double-digit growth due to strong sales of Neorest.
Sanitary Ware 52% (FY18) 56% (FY17)
Washlet 24% (FY18) 21% (FY17)
Others 7% (FY18) 6% (FY17) Faucet Fixtures
17% (FY18) 17% (FY17)
■ Net sales growth by region
West
Canada
Northeast Central & Southeast
■Net sales growth by products
■Product range comprising net sales
■ Sales distribution ratio
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FY 2018 Results
Financial Results Unit: € million
FY17 FY18 YoY
Net Sales 26 26 -0
(-3%)
Operating Profit -6 -7 -1
Results for local subsidiaries (Europe)
Exchange rates 4Q, FY17 4Q, FY18
1€ ¥133.0 ¥128.8
Decreased sales and profit. We will gain broader distribution on an ongoing basis
and sell our products to famous buildings and locations.
•Base that does not include consolidated adjustment •and common expense allocations
■New Washlet products for Europe are selling well.
中高級
Sales of slim-line Washlet products, which are preferred in European markets, have continuously been robust since the launch. The products were highly rated at ISH held in Germany in March 2019.
WASHLET RX ( Released in July 2018 )
WASHLET SX ( Released in November 2018 )
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Advanced Ceramic Business
Green Building Materials Business
New Domain Business
FY17 FY18 YoY
Influence of exchange rate
Currency-neutral basis
Net Sales 20.0 22.1 +2.1 (+11%)
-0.2 +2.3 (+12%)
Operating Profit 1.7 1.2 -0.5 (-27%)
-0.0 -0.5 (-26%)
Operating Margin 9% 6% -3pt
Revision plan as
of 2018 3Q
Difference from the revision plan
of 2018 3Q
22.6 -0.5 (-2%)
1.2 +0.0 (+7%)
5% +1pt
FY17 FY18 YoY
Influence of exchange rate
Currency-neutral basis
Net Sales 8.4 8.0 -0.4 (-4%)
-0.4 (-4%)
Operating Profit -0.4 -0.3 +0.1 +0.1
Revision plan as
of 2018 3Q
Difference from the revision plan of 2018 3Q
8.4 -0.4 (-5%)
-0.2 -0.1
In ceramic business, sales increased, but profits decreased due to worsening productivity.
FY 2018 Results
Unit: Y billion
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved.
1. Financial Result for FY 2018
2.Topics
3.Financial Plan for FY 2019
Contents
Copyright © TOTO LTD. All Rights Reserved. 16
Launching the TOTO brand globally.
Topics
TOTO booth
Participation in international exhibitions ‘Life Anew’—Update and enrich people’s daily lives around the world
■ISH2019
Period: March 11–15, 2019 Location: Frankfurt, Germany Number of visitors: around 200,000 (to ISH as a whole)
Fruits of clean technologies
Neorest
■ International CES 2019
NEOREST NX and FLOTATION TUB were evaluated as products with outstanding design and technology and named CES Innovation Award Honorees in the consumer electronics products category.
NEOREST NX FLOTATION TUB
Period: Jan. 8 (Tue.) to Jan. 11 (Fri.), 2019 Venue: Las Vegas Convention Center (LVCC) Las Vegas, United States
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Topics
Evaluation from outside company
Our manufacturing and CSR efforts are well thought of both inside and outside Japan.
‘Commercialization of Micro-wave Sensor for Toilet Seats’ won ‘Radio Achievement Award’
TOTO was selected as an index member of ‘FTSE4Good Index Series,’
a global index for Social Responsible Investment, for three straight years (announced in July 2018).
Selected as one of the stocks in the Dow Jones Sustainability World Index (DJSI World), for the seventh time.
‘iF DESIGN AWARD 2019’ *NEOREST AH/RH, etc.
<three consecutive years >
Received internationally recognized design awards
‘reddot award 2019’ *Water faucet, etc.
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Topics
WASHLET – Global Strategy
TOTO has collaborated with Narita International Airport to establish state-of-the-art bathroom facilities to offer hospitality using IoT for overseas visitors to experience Japan's sophisticated toilet culture represented by Washlet with seats featuring warm water shower, the first toilet experience after their entry to Japan.
-Terminal 1 Building, Narita International Airport First Floor, South Wing arrival lobby -Opened on Wednesday, April 3, 2019
■Washlet with a remote-control tablet device (tentative introduction)
Tentative introduction of remote-control tablet devices to operate Washlet with seats featuring warm water shower, supporting five languages: Japanese, English, Simplified Chinese, Traditional Chinese and Korean.
■Display of occupancy status of toilet Using sensors attached to the toilet booth doors and analysis technology to sensor the line status, the toilet occupancy status can be ascertained. The vacancy or occupation status as well as the line status are displayed on the LCD panel installed on both sides of the toilet entrance in five languages (English, Simplified Chinese, Traditional Chinese, Korean and Japanese) via the cloud.
【Major features
experience TOTO
Transmit a message: “Japan’s sophisticated toilet culture = TOTO” throughout the world.
Opened “experience TOTO,” toilet facilities to offer hospitality (omotenashi in Japanese) to travelers, at Narita Airport
Copyright © TOTO LTD. All Rights Reserved.
1. Financial Result for FY 2018
2.Topics
3.Financial Plan for FY 2019
Contents
Copyright © TOTO LTD. All Rights Reserved. 19
FY 2019 Plan
New business domains: Decreased sales and increased profits
◆Both remodeling and new housing Increased sales and profits.
◆ Aiming to increase sales and profits in all areas ◆ We continuously aim to expand sales of Washlet products.
We expect to achieve an increase in sales and profits with record high sales.
Global housing equipment business (Japan): Increased sales and decreased profits
Global housing equipment business (overseas): Increased sales and profits
◆ In the Advanced Ceramic business, we expect a decrease in sales due to temporary stagnation in the semiconductor market but an increase in profits due to improved productivity.
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Profit and Loss
■Exchange rates
FY 2019 Plan
20
FY18 FY19 Plan
YoY Influence of exchange
rate
Currency-neutral basis 1st Half 2nd Half Total
Net Sales 586.0 293.9 321.1 615.0 +29.0 (+5%)
-2.8 +31.8 (+5%)
Operating Profit [Operating Margin]
40.1 [6.9%]
16.3 [5.5%]
26.7 [8.3%]
43.0 [7.0%]
+2.9 (+7%)
-0.5 +3.4 (+8%)
Recurring Profit
43.1 17.0 27.0 44.0 +0.9 (+2%)
-1.1 +2.0 (+5%)
Profit attributable to owners of parent 32.3 12.4 19.3 31.7
-0.6 (-2%)
-1.0 +0.4 (+1%)
ROA 7.1% 7.3%
ROE 9.6% 9.2%
Unit: Y billion
FY18 FY19
1Q 2Q 3Q 4Q Plan
1 $ ¥108.2 ¥109.1 ¥111.4 ¥112.9 ¥110.0
1 CNY ¥17.0 ¥17.1 ¥16.4 ¥16.3 ¥16.0
1 € ¥133.1 ¥130.0 ¥129.6 ¥128.8 ¥130.0
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< Net Sales > FY18 FY19 Plan
YoY Influence of exchange rate
Currency-neutral basis 1st Half 2nd Half Total
Domestic H.E. 425.1 210.0 226.1 436.1 +11.0 (+3%)
+11.0 (+3%)
Overseas H.E. 130.4 69.9 78.7 148.6 +18.2 (+14%)
-2.7 +20.9 (+16%)
New Domain 30.2 13.9 16.1 30.0 -0.2 (-1%)
-0.0 -0.3 (-1%)
Others 0.2 0.1 0.2 0.3 +0.1 +0.1
Total 586.0 293.9 321.1 615.0 +29.0 (+5%)
-2.8 +31.8 (+5%)
21
FY 2019 Plan
Sales and profit by business segment
< Operating Profit > FY18
FY19 Plan YoY Influence of
exchange rate Currency-
neutral basis 1st Half 2nd Half Total
Domestic H.E. 24.4 9.2 13.5 22.7 -1.7 (-7%)
-1.7 (-7%)
Overseas H.E. 18.3 8.5 13.9 22.4 +4.1 (+22%)
-0.5 +4.6 (+25%)
New Domain 0.9 0.4 1.3 1.7 +0.8 (+75%)
-0.0 +0.8 (+76%)
Others -3.5 -1.8 -2.0 -3.8 -0.3 -0.3
Total 40.1 16.3 26.7 43.0 +2.9 (+7%)
-0.5 +3.4 (+8%)
Unit: Y billion
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FY 2019 Plan
Housing Equipment Business(Japan)
2017年度 営業利益
売上増減/ 商品構成差
コスト リダクション
原材料の 影響
労務費の 増減
減価 償却費
開発・ 生産投資
販売 強化投資
2018年度 営業利益
Cause of increase/decrease of operating profit (Breakdown of -1.7 billion yen in previous year's difference)
FY18 operating profit
Increase/decrease in sales and product range differences
Cost reduction
Influence of raw materials
increase/ decrease in labor costs
Amortization
development of Production investment
Strengthening investment sales
Others FY19 operating profit
Unit: Y billion
24.4
+6.0 -2.9
-1.1
-0.6 -2.4 -2.2
-1.0
22.7
+2.5
- Bonus, increase in base pay - Treatment improvement, etc. - Effects of changes in steel sheet prices
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Housing Equipment Business(Japan)
Performance by demand
FY18 FY19 Plan YoY
Net Sales 290.5 297.5 +7.0 (+2%)
Operating Profit 21.3 19.9 -1.4 (-7%)
Operating Margin 7% 7% -0pt
Both remodeling and new housing Increased sales and profits.
FY18 FY19 Plan YoY
Net Sales 134.6 138.6 +4.0 (+3%)
Operating Profit 3.1 2.8 -0.3 (-10%)
Operating Margin 2% 2% -0pt
FY 2019 Plan
< Remodeling>
<New Housing>
Unit: Y billion
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Housing Equipment Business(Japan): Plan of Remodeling/New Housing
FY 2019 Plan
For both the remodeling and new housing segments, sales are expected to increase year-on-year. We factored in the effect of the buying rush in anticipation of the consumption tax hike as +3% for remodeling and +2% for new housing for the first half of FY2019, as well as the reactionary decline as -2% for remodeling
and -1% for new housing for the second half of FY2019.
Remodeling New Housing
2nd Half
Total
+1%
135.7
142.0 (+5%)
Market growth
FY2019
FY2018
+3%
Impact of consumption tax increase
+1% 1st Half
154.8 155.5
(+0%)
FY2019 FY2018
▲2% +1%
+1%
290.5
297.5 (+2%)
FY2019 FY2018
+0% +1%
合計
Demand +5%
Net sales +7%
*Due to effect of tax increases +2%
合計
Demand ▲4%
Net sales ▲1%
合計
Demand +0%
Net sales +3%
+1%
2nd Half
Total
1st Half
Impact of consumption tax increase
Impact of consumption tax increase
Unit: Y billion
Market growth
Market growth
Measures including the launch of new
products
Measures including the launch of new
products
Measures including the launch of new
products
*Due to effect of tax increases -1%
*Due to effect of tax increases +1%
Copyright © TOTO LTD. All Rights Reserved. 25
Net Sales Operating Profit
FY18 FY19 Plan YoY FY18 FY19 Plan YoY
Sanitary Ware 90.0 92.3 +2.3
(+3%) 7.3 6.9
-0.4 (-5%)
Washlet 95.9 97.1 +1.2
(+1%) 13.1 11.9
-1.2 (-9%)
Faucet Fixtures 90.1 93.2 +3.1
(+3%) 4.4 4.9
+0.5 (+11%)
Bathrooms 97.4 101.2 +3.8
(+4%) 1.4 0.6
-0.8 (-57%)
Modular Kitchens/Basins
43.4 44.1 +0.7
(+2%) -0.9 -0.5 +0.4
Others 8.1 8.2 +0.1
(+1%) -0.8 -0.9 -0.1
Total 425.1 436.1 +11.0
(+3%) 24.4 22.7
-1.7 (-7%)
Housing Equipment Business(Japan)
Sales per Products
Sales increase for all products. Sanitaryware, washlet, bathroom plans to decrease profit.
FY 2019 Plan
Unit: Y billion
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Plan to increase sales and profit in all regions.
26
FY 2019 Plan
Housing Equipment Business(Overseas)
<Operating Profit> FY18 FY19 Plan YoY Currency-neutral basis
China 12.3 14.5 +2.2
(+17%)
+2.7 (+22%)
Asian & Oceanian Region
5.4 6.2 +0.8
(+14%)
+0.7 (+13%)
Americas 1.6 2.3 +0.7
(+45%)
+0.7 (+46%)
Europe -1.1 -0.6 +0.5 +0.4
Total 18.3 22.4 +4.1
( +22%)
+4.6 ( +25%)
< Net Sales > FY18 FY19 Plan YoY Currency-neutral basis
China 63.5 71.0 +7.5
(+12%) +10.3 (+16%)
Asian & Oceanian Region
31.8 36.4 +4.6
(+15%) +4.4
(+14%)
Americas 31.3 35.9 +4.6
(+15%) +4.7
(+15%)
Europe 3.7 5.1 +1.4
(+36%) +1.3
(+37%)
Total 130.4 148.6 +18.2 (+14%)
+20.9 (+16%)
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 27
Profit and Loss Unit: CNY million
Plan for local subsidiaries (China)
FY18 FY19 Plan YoY
Net Sales 3,782 4,434 +652 (+17%)
Operating Profit
800 992 +192 (+24%)
Operating Margin
21% 22% +1pt
Exchange rates FY19 Plan
1CNY ¥16.0
Product supply will be stable through new product launches and other factors, and sales and profits are projected to increase.
FY 2019 Plan
Sales the first quarter (January through March) is down 9% on year-on-year basis.
100
128
2017年度 2018年度
Washlet: Growth in sales volume Cause of increase/decrease of operating profit
Unit: CNY million
2017年度 営業利益
2018年度 営業利益
売上増減/ 商品構成差
製造 コスト
販管費 増減
(with FY18 as 100 )
FY18 operating income
FY19 operating income
Increase/ decrease in sales
Strengthening investment sales
Production cost FY 19 (Plan) FY 18
800
-108
992
+331 -31
* Base that does not include consolidated adjustment and common expense allocations
Copyright © TOTO LTD. All Rights Reserved.
100120
2018年度 2019年度
■Washlet: Growth in sales volume
FY 19(Plan) FY 18
台湾37%
ベトナム32%
その他31%
28
Plan for local subsidiaries (Asian & Oceanian Region)
Taiwan FY18 FY19 Plan YoY
Net Sales 3,438 3,672 +234 (+7%)
Operating Profit
796 802 +6 (+1%)
Operating Margin
23% 22% -1pt
Vietnam FY18 FY19 Plan YoY
Net Sales [For external customers]
3,671 [2,056]
4,249 [2,386]
(+16%) [+16%]
Operating Profit
522 581 +59 (+11%)
Operating Margin
14% 14% -0pt
Taiwan: We expect increases in sales and profits with an increase in properties delivered due to the recovery of construction starts.
Vietnam: We expect increases in sales and profits by proactively promoting new products using showrooms.
FY 2019 Plan
* Base that does not include consolidated adjustment and common expense allocations
Unit: Million Taiwan dollars
Unit: Billion Dong
Net sales breakdown by area Taiwan 37% Vietnam 32% Others 31%
Sales the first quarter (January through March) grew by 14% on year-on-year basis.
Sales for external customers the first quarter (January through March) grew by 1% on year-on-year basis.
(with FY18 as 100 )
Exchange rates FY19 Plan
1 Taiwan dollars ¥3.70
Exchange rates FY19 Plan
1 dong ¥0.00485
Copyright © TOTO LTD. All Rights Reserved.
100146
2018年度 2019年度
29
Profit and Loss Unit: $ million
Plan for local subsidiaries (Americas)
We expect increases in sales and profits due to a significant growth in sales of Washlet products and the recovery of productivity.
FY 2019 Plan
FY18 FY19 Plan YoY
Net Sales 283 326 +43
(+15%)
Operating Profit
24 31 +7
(+28%)
Operating Margin
9% 9% +0pt
Exchange rates FY19Plan
1$ ¥110.0
Cause of increase/decrease of operating profit
Unit: $ million
2016年度 営業利益
販管費 増減
2017年度 営業利益
売上増減/ 商品構成差
製造 コスト
(with FY18 as 100 )
Washlet: Growth in sales volume
FY18 operating income
FY19 operating income
Increase/ decrease in sales
Strengthening investment sales
Production cost FY 19 (Plan) FY 18
* Base that does not include consolidated adjustment and common expense allocations
Sales the first quarter (January through March) grew by 4% on year-on-year basis.
24
+18
31
-18 +7
123
Copyright © TOTO LTD. All Rights Reserved. 30
Profit and Loss Unit: € million
FY18 FY19 Plan YoY
Net Sales 26 36 +10 (+41%)
Operating Profit -7 -5 +2
Plan for local subsidiaries (Europe)
Plans to increase sales and reduce deficits.
FY 2019 Plan
Exchange rates FY19 Plan
1€ ¥130.0
Sales the first quarter (January through March) grew by 10% on year-on-year basis.
* Base that does not include consolidated adjustment and common expense allocations
■Bolster sales in Germany
WASHLET RX WASHLET SX
- Washlet equipped with “EWATER +”
- High-design faucets, etc.
■Launch new products sequentially
■Expand networks of plumbers (plumbing shops) in Germany
Seminars for Washlet
New product promotions
Demand creation measures
Bring community-based influential plumbers aboard
New products in FY2018 New products in FY2019
Copyright © TOTO LTD. All Rights Reserved. 31
Advanced Ceramic Business
Green Building Materials Business
New Domain Business
FY18 FY19 Plan YoY
Influence of exchange rate
Currency-neutral basis
Net Sales 22.1 21.3 -0.8 (-4%)
-0.0 -0.8 (-3%)
Operating Profit 1.2 1.6 +0.4 (+30%)
-0.0 +0.4 (+30%)
Operating Margin 6% 8% +2pt
FY18 FY19 Plan YoY
Influence of exchange rate
Currency-neutral basis
Net Sales 8.0 8.6 +0.6 (+8%)
+0.6 (+8%)
Operating Profit -0.3 0.0 +0.3 +0.3
Advanced ceramic business plans to decrease sales but increase profits
due to temporary stagnation in semiconductor market.
FY 2019 Plan
Unit: Y billion
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 32
Price revision implemented in Japan
FY 2019 Plan
■Reason for price revision Raw material prices, distribution costs, fuel prices, labor costs, etc. have continued to rise.
We have tried to reduce costs by improving productivity and streamlining.
However, it was determined that it was difficult to absorb only by corporate effort.
■Implementation period : From the order received on Oct.1, 2019
■Main products and revision rates Main products Revision rates
Sanitary Ware About 6 to 7%
Washlet About 4 to 6%
Faucet Fixtures About 5 to 6%
Prefabricated Bathroom About 5 to 7%
Bathroom Vanity About 4 to 6%
Others About 5 to 6%
Copyright © TOTO LTD. All Rights Reserved. 33
Profit and Loss
FY 2019 Plan(After price revision)
Expecting operating profit +2 billion yen by this price revision.
FY18 FY19 Plan
YoY Influence of exchange rate
Currency-neutral basis 1st Half 2nd Half Total
Net Sales 586.0 293.9 324.1 618.0 +32.0 (+5%)
-2.8 +34.8 (+6%)
Operating Profit [Operating Margin]
40.1 [6.9%]
16.3 [5.5%]
28.7 [8.9%]
45.0 [7.3%]
+4.9 (+12%)
-0.5 +5.4 (+13%)
Recurring Profit
43.1 17.0 29.0 46.0 +2.9 (+7%)
-1.1 +4.0 (+9%)
Profit attributable to owners of parent 32.3 12.4 20.6 33.0 +0.7
(+2%) -1.0 +1.7
(+5%)
ROA 7.1% 7.7%
ROE 9.6% 9.6%
43.0 45.0
+3.0 -1.0
Before After
■Profit of price revision impact
impact Cost
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved.
< Net Sales > FY18 FY19 Plan
YoY Influence of exchange rate
Currency-neutral basis 1st Half 2nd Half Total
Domestic H.E. 425.1 210.0 229.1 439.1 +14.0 (+3%)
+14.0 (+3%)
Overseas H.E. 130.4 69.9 78.7 148.6 +18.2 (+14%)
-2.7 +20.9 (+16%)
New Domain 30.2 13.9 16.1 30.0 -0.2 (-1%)
-0.0 -0.3 (-1%)
Others 0.2 0.1 0.2 0.3 +0.1 +0.1
Total 586.0 293.9 324.1 618.0 +32.0 (+5%)
-2.8 +34.8 (+6%)
34
FY 2019 Plan(After price revision)
Sales and profit by business segment
< Operating Profit > FY18
FY19 Plan YoY Influence of
exchange rate Currency-
neutral basis 1st Half 2nd Half Total
Domestic H.E. 24.4 9.2 15.5 24.7 +0.3 (+1%)
+0.3 (+1%)
Overseas H.E. 18.3 8.5 13.9 22.4 +4.1 (+22%)
-0.5 +4.6 (+25%)
New Domain 0.9 0.4 1.3 1.7 +0.8 (+75%)
-0.0 +0.8 (+76%)
Others -3.5 -1.8 -2.0 -3.8 -0.3 -0.3
Total 40.1 16.3 28.7 45.0 +4.9 (+12%)
-0.5 +5.4 (+13%)
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 35
FY2017 FY2018 FY2019 Plan
Capital expenditure 38.1 billion yen 57.3 billion yen 43.6 billion yen
Depreciation expenses 21.3 billion yen 23.3 billion yen 25.9 billion yen
R&D expenses 20.5 billion yen 21.1 billion yen 22.7 billion yen
Changes in capital expenditure, depreciation expenses and R&D expenses
FY 2019 Plan
■Breakdown of capital investment (FY2019)
Housing Equipment Business(Japan)
-New product development -Production equipment related etc.
Approximately 30.0 billion yen
Housing Equipment Business(Overseas)
・New plant related ・Production equipment related etc.
Approximately 10.0 billion yen
New Domain Business ・Ceramic expansion etc. Approximately 4.0 billion yen
Copyright © TOTO LTD. All Rights Reserved. 36
Dividend Plan
The dividend for fiscal 2019 is 90 yen.
FY17 FY18 FY19 Plan
1st Half ¥36.0 ¥45.0 ¥45.0
2nd Half ¥36.0 ¥45.0 ¥45.0
Full Year ¥72.0 ¥90.0 ¥90.0
Dividend payment
Ratio 33.1% 47.1% 46.2%
FY 2019 Plan
Copyright © TOTO LTD. All Rights Reserved. 37
ESG
Reviewing TOTO Global Environmental Vision
Provide Cleanliness and Comfort for Life
Respect the Environment
Build Relationships That Enrich Life
<Mission>
We will aim to further enhance our corporate value by seeking to integrate CSR into corporate management.
<TOTO Global Environmental Vision>
Environment
Relationships
Cleanliness and Comfort
Pursue ease of use for everyone
Undertake initiatives to fight global warming and coexist with the earth.
Aim for sustainable development together with local communities.
Offer cultural support and contribute to society for
the next generation.
Create and share joy in
work together.
Realize cleanliness and comfort throughout the world.
Protect our limited water resources and connect
with the future.
Build deep, long-lasting relationships
with customers.
Copyright © TOTO LTD. All Rights Reserved. 38
Activities based on three materialities
ESG
3年 8ヵ月 5年 7ヵ月 6年11ヵ月 18年1ヵ月 4年 6ヵ月
1980年6月 発売開始
1998年7月 1000万台突破
2005年6月 2000万台突破
2011年1月 3000万台突破
(万台)
(年度)
Mar. 2019
50 million units
1987年11月 100万台突破
2015年7月 4000万台突破
0
1000
2000
3000
4000
5000
1980
1981
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1983
1984
1985
1986
1987
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1989
1990
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2005
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2011
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2014
2015
2016
2017
2018
Materiality Cleanliness and Comfort
Activity Global development of sophisticated and comfortable toilets
■Washlet
Materiality Relationships
Activity Improvement of customer satisfaction
■After-service customer satisfaction (Japan) ■Shipment ratio of water-saving toilets (Water per flush of 4.8 L or less) (Global)
Materiality Environment
Activity Social contribution activities rooted in communities
Materiality Environment
Activity Popularization of water-saving products
We support activities related to water environment conservation to effectively use important water resources and foster the sustainable growth of society for the future. Since its establishment in 2005, the TOTO Water Environment Fund has provided over 300 million yen in grants to a total of 259 organizations 14 times. This fund is broadening its efforts both in the 40 prefectures throughout Japan as well as 15 different countries and regions.
■TOTO Water Environment Fund
43% 48%
58% 63% 68%
73% 77% 79%
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015 2016 2017 2018
89% 89% 90% 91% 90% 91% 91%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016 2017 2018
Copyright © TOTO LTD. All Rights Reserved. 39
Integrated Report
ESG
We have created new reports as a new tool by integrating financial and non-financial information from existing corporate reports. The integrated reports have been issued since 2018.
■Points of publication content -Corporate attitude passed down since the company’s founding - History of TOTO Group - Medium- and long-term corporate management strategy - Topics of business activities - Efforts to further improve corporate value for the future
TOTO Integrated Report https://jp.toto.com/en/company/profile/library/index.htm
Integrated Report 2019 Scheduled for July 2019
Copyright © TOTO LTD. All Rights Reserved. 40
About non-continuation (abolition) of takeover defense measures
■Reason for discontinuation (abolishment) We have carefully considered the possible effects of continuing the takeover defense measures, etc. while scrutinizing the following aspects; ●Opinions of shareholders including domestic and overseas institutional investors ●Recent trends on Takeover Defense Measures ●Changes in the business environment surrounding the Company
The “Policy on Response to Large-Scale Purchases of Company Shares (Takeover Defense Measures),” introduced in 2006, will be abolished on the expiration date in June 2019.
We will continue to improve corporate value in the future.
Topic
This presentation material contains forward-looking statements based on assumptions,
estimates and plans as of April 26, 2019.
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.