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Fiscal Year 2017 Results - Toto Ltd. › en › company › ir › reference › presentation ›...
Transcript of Fiscal Year 2017 Results - Toto Ltd. › en › company › ir › reference › presentation ›...
Copyright © TOTO LTD. All Rights Reserved.
April 28, 2017
Fiscal Year 2017 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 2017
2.Topics
3.Financial Plan for FY 2018
Contents
Copyright © TOTO LTD. All Rights Reserved. 1
Summary of Consolidated Financial Results for 2017
Highlights
New business domains: Increased sales and profits
◆ Remodeling business increased sales and profits. ◆ New Housing business decreased in sales and profits.
◆ Performance driven by strong operation in China. ◆ Increases in sales and profits in China and the Americas.
Increase in Sales and Profits. Record High Sales, Operating Profit and Ordinary Profit.
◆ Considerable increase in sales and profit due to continued demand in ceramic business.
Global housing equipment business (Japan):Increase in income
Global housing equipment business (overseas): Increased sales and profits
Copyright © TOTO LTD. All Rights Reserved.
Financial results
■Exchange rates
Unit: Y billion
Plan vs.
Plan
600.0 ▲7.7 (▲1%)
54.0 [9.0%]
▲1.4 (▲3%)
56.0 ▲1.7 (▲3%)
38.0 ▲1.3 (▲3%)
9.6% ▲0.2pt
12.4% ▲0.7pt
FY16 FY17
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1 $ ¥115.4 ¥108.0 ¥102.4 ¥109.4 ¥113.6 ¥111.1 ¥111.0 ¥113.0
1 CNY ¥17.6 ¥16.5 ¥15.4 ¥16.0 ¥16.6 ¥16.2 ¥16.6 ¥17.1
1 € ¥127.2 ¥121.9 ¥114.3 ¥117.9 ¥121.1 ¥122.3 ¥130.4 ¥133.0
FY 2017 Results
2
FY16 FY17
YoY Influence of exchange rete
Currency-neutral basis
Net Sales 567.3 592.3 +25.0 (+4%)
+3.9 +21.1 (+4%)
Operating Profit [Operating Margin]
47.4 [8.4%]
52.6 [8.9%]
+5.2 (+11%)
+0.7 +4.5
(+10%)
Recurring Profit
48.1 54.3 +6.2
(+13%) ▲0
+6.2 (+13%)
Profit attributable to owners of parent 32.9 36.7
+3.8 (+12%)
▲0.3 +4.1
(+12%)
ROA 8.7% 9.4% +0.7pt
ROE 11.5% 11.7% +0.2pt
Starting from the current financial year, the currency conversion method for overseas group companies' profit and loss was changed from the method using the rates on the last day of each term to the method using average rates during each term. All numbers found in the information related to the previous year in this material have been revised retroactively.
Copyright © TOTO LTD. All Rights Reserved.
< Net Sales > FY16 FY17 YoY Influence of exchange rete
Currency-neutral basis
Domestic H.E. 423.3 425.6 +2.3 (+1%)
+2.3 (+1%)
Overseas H.E. 122.2 137.9 +15.7 (+13%)
+3.4 +12.3 (+10%)
New Domain 21.4 28.4 +7.0 (+32%)
+0.5 +6.5 (+30%)
Others 0.2 0.2 ▲0 ▲0
Total 567.3 592.3 +25.0 (+4%)
+3.9 +21.1 (+4%)
3
FY 2017 Results
Sales and profit by business segment
< Operating Profit > FY16 FY17 YoY Influence of exchange rete
Currency-neutral basis
Domestic H.E. 29.1 28.6 ▲0.5 (▲2%)
▲0.5 (▲2%)
Overseas H.E. 22.2 26.3 +4.1 (+19%)
+0.7 +3.4 (+16%)
New Domain 0.5 1.3 +0.8 (+143%)
+0.1 +0.7 (+142%)
Others ▲4.4 ▲3.7 +0.7 +0.7
Total 47.4 52.6 +5.2 (+11%)
+0.7 +4.5 (+10%)
Plan vs.
Plan
433.0 ▲7.4 (▲2%)
137.5 +0.4 (+0%)
29.2 ▲0.8
(▲3%)
0.3 ▲0.1
600.0 ▲7.7 (▲1%)
Plan vs.
Plan
31.0 ▲2.4 (▲8%)
25.0 +1.3 (+5%)
1.9 ▲0.6 (▲31%)
▲3.9 +0.2
54.0 ▲1.4 (▲3%)
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 4
FY 2017 Results
Housing Equipment Business(Japan)
FY16 operating profit
FY17 operating profit
Cause of increase/decrease of operating profit (Breakdown of 0.5 billion yen in previous year's difference)
- Cost for the operation of new factory
- Change in treatment revision of personnel system - Increase in base pay, etc.
- Effect of changes in copper price : ▲1.3 billion yen - Effects of changes in steel sheet prices : ▲1.0 billion yen
vs. Plan ▲2.6 ▲0.2 ▲0.6 ▲0 +0.2 +0.3 +0.5 +0.2 *Based on the revised plan based on October 30
▲2.4
Total difference of plan
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
29.1 28.6
+6.6 ▲2.4
+1.6 ▲1.6 ▲1.2 ▲0.7
▲3.5
+0.9
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 5
FY 2017 Results
Housing Equipment Business(Japan)
Performance by demand
FY16 FY17 YoY
Net Sales 283.5 290.1 +6.6 (+2%)
Operating Profit 24.2 24.7 +0.5 (+2%)
Operating Margin 9% 9% ▲0pt
Increase in sales and profits in remodeling segment .
Both remodeling and new housing fell short of the plan
Plan Vs. Plan
292.5 ▲2.4 (▲1%)
26.0 ▲1.3 (▲5%)
9% ▲0pt
FY16 FY17 YoY
Net Sales 139.7 135.4 ▲4.3 (▲3%)
Operating Profit 4.9 3.9 ▲1.0 (▲19%)
Operating Margin 4% 3% ▲1pt
Plan Vs. Plan
140.5 ▲5.1 (▲4%)
5.0 ▲1.1 (▲21%)
4% ▲1pt
< Remodeling>
<New Housing>
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 6
FY 2017 Results
Housing Equipment Business(Japan) :Results by product demand
While the remodeling market was sluggish, segment sales increased year on year due to the effect of new products. For new housing, while sales for non-residential buildings were solid, sales for private homes decreased with a
declining number of new housing starts.
Second half ( October-March )(YoY)
Second half ( April to March )(YoY)
283.5 billion yen
290.1 billion yen
(+2%)
▲1% +3%
FY2016 FY2017
149.5 billion yen
153.4 billion yen
(+3%)
▲1% +3%
FY2016 FY2017
Measures including the launch of new
products
Remodeling New Housing
First half Second half Full year
For residential
use Net Sales
▲6% ▲8% ▲7%
Housing starts
+1% ▲3% ▲1%
(YoY)
For non residential Net Sales
+4% +7% +6%
Market growth
Market growth Measures including the launch of new
products
Copyright © TOTO LTD. All Rights Reserved. 7
FY 2017 Results
Net Sales Operating Profit
FY16 FY17 YoY FY16 FY17 YoY
Sanitary Ware 86.3 89.9 +3.6
(+4%) 8.2 8.8
+0.6 (+7%)
Washlet 93.1 95.1 +2.0
(+2%) 12.9 14.1
+1.2 (+9%)
Faucet Fixtures 93.2 93.7 +0.5
(+0%) 7.6 6.6
▲1.0 (▲12%)
Bathrooms 96.0 94.2 ▲1.8
(▲2%) 3.2 1.6
▲1.6 (▲51%)
Modular Kitchens/Basins
45.4 43.0 ▲2.4
(▲5%) ▲2.4 ▲1.9
+0.5 (-)
Others 9.0 9.5 +0.5
(+6%) ▲0.5 ▲0.5
▲0 (-)
Total 423.3 425.6 +2.3
(+1%) 29.1 28.6
▲0.5 (▲2%)
Housing Equipment Business(Japan)
Sales per Products
Led by new product launches, the sanitary ware and Washlet sales increased. Profit from bathrooms declined due to a decrease in sales and the impact of soaring raw materials prices.
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved.
Driven by the strong Chinese market,
sales and profits continued to rise in the global market as a whole.
< Operating Profit >
FY16 FY17 YoY Currency-neutral basis
China 15.2 18.1 +2.9
(+19%)
+2.5 (+16%)
Asian & Oceanian Region 5.5 6.7
+1.2 (+21%)
+0.9 (+17%)
Americas 2.2 2.5 +0.3
(+13%)
+0.2 (+11%)
Europe ▲0.8 ▲1.0 ▲0.2 (-)
▲0.1 (-)
Total 22.2 26.3 +4.1
( +19%)
+3.4 ( +16%)
8
FY 2017 Results
< Net Sales > FY16 FY17 YoY Currency-neutral basis
China 61.3 71.9 +10.6 (+17%)
+9.2 (+15%)
Asian & Oceanian Region 28.6 31.6
+3.0 (+10%)
+2.0 (+7%)
Americas 28.4 30.7 +2.3 (+8%)
+1.4 (+5%)
Europe 3.7 3.5 ▲0.2
(▲4%) ▲0.3
(▲9%)
Total 122.2 137.9 +15.7 (+13%)
+12.3 (+10%)
Housing Equipment Business(Overseas)
Plan vs.Plan
18.1 +0
6.2 +0.5
2.0 +0.5
▲1.3 +0.3
25.0 +1.3
Plan vs.Plan
71.5 +0.4
31.7 ▲0.1
30.7 +0
3.6 ▲0.1
137.5 +0.4
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 9
FY 2017 Results
Financial Results Unit: CNY million
Results for local subsidiaries (China)
FY16 FY17 YoY
Net Sales 3,776 4,308 +532 (+14%)
Operating Profit
979 1,150 +171
(+18%)
Operating Margin
26% 27% +1pt
Exchange rates
4Q, FY16 4Q, FY17
1CNY ¥16.0 ¥17.1
979
▲43
1,150
+30
2016年度 営業利益
2017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
Cause of increase/decrease of operating profit
Unit: CNY million
+184
Significant increase in sales and profits compared to the previous year. Strengthen promotion aiming for further expansion of Washlets.
(with FY16 as 100 )
Washlets: Growth in sales volume
* Base that does not include consolidated adjustment and common expense allocations
FY 17 FY 16
FY 16 operating income
FY 17 operating income
Increase/decrease in sales
Production cost
Strengthening investment sales
Copyright © TOTO LTD. All Rights Reserved. 10
FY 2017 Results
Results for local subsidiaries (China)
(+19%)
(+10%)
(+25%)
(▲1%)
(+4%)
China Total :+14%
North China 20%
East China 43%
South China 22%
West China 11%
Hong Kong 4%
YoY
Sanitary Ware +22%
Washlet +17%
Faucet Fixtures +19%
Sales in coastal regions continued to significantly increase. All products were solid.
Others 14% (FY17) 18% (FY16)
Washlet 25% (FY17) 25% (FY16)
Faucet Fixtures 18% (FY17) 17% (FY16)
Sanitary Ware 43% (FY17) 40% (FY16)
■Net sales growth by region ■Net sales growth by produccts
East China
North China
South China
West China
Hong Kong
■ Sales distribution ratio
■Product range comprising net sales
Copyright © TOTO LTD. All Rights Reserved. 11
FY 2017 Results
Taiwan FY16 FY17 YoY
Net Sales 3,734 3,606 ▲128 (▲3%)
Operating Profit 916 865 ▲51 (▲6%)
Operating Margin 25% 24% ▲1pt Exchange rates 4Q, FY17
1 dong ¥3.75
Unit: Million Taiwan dollars
Vietnam FY16 FY17 YoY
Net Sales (For external customers)
2,940 [1,818]
3,369 [2,140]
(+15%) (+18%)
Operating Profit 626 743 +117 (+19%)
Operating Margin 21% 22% +1pt
Unit: Billion Dong
Exchange rates 4Q, FY17
1 dong ¥0.00493
In Taiwan, both sales and profit decreased due to severe market conditions. In Vietnam, the results remained strong with increases in sales and profit.
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%
■ Washlets: Growth in sales volume
(with FY15 as 100 )
FY 16 FY 17
Copyright © TOTO LTD. All Rights Reserved. 12
FY 2017 Results
Financial Results Unit: $ million
Results for local subsidiaries (Americas)
29
+11
29
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
▲6
Sales increased driven by Washlet growth while the operating profit was flat.
▲5
FY16 FY17 YoY
Net Sales 261 274 +13 (+5%)
Operating Profit 29 29 ▲0 (▲1%)
Operating Margin 11% 11% ▲0pt
Cause of increase/decrease of operating profit
Exchange rates
4Q, FY16 4Q, FY17
1$ ¥109.4 ¥113.0
133
* Base that does not include consolidated adjustment and common expense allocations
(with FY16 as 100 )
FY 16 operating income
FY 17 operating income
Increase/decrease in sales
Production cost
Strengthening investment sales FY 17 FY 16
Copyright © TOTO LTD. All Rights Reserved. 13
FY 2017 Results
Results for local subsidiaries (Americas)
(+7%) (+2%) (+5%)
(+5%)
West 43%
Northeast 25%
Central 22%
Canada 10%
Americas Total:+5% YoY
Sanitary Ware +4%
Washlet +22%
Faucet Fixtures ▲4%
Sales increased in all regions, in particular, with a significant increase in Washlet.
Sanitary Ware 56% (FY17) 57% (FY16)
Washlet 21% (FY17) 18% (FY16)
Others 6% (FY17) 6% (FY16) Faucet Fixtures
17% (FY17) 19% (FY16)
■ Net sales growth by region
West
Canada
Northeast Central
■Net sales growth by produccts
■Product range comprising net sales
■ Sales distribution ratio
* Faucet Fixtures: Response to water-saving regulations was delayed, but released countermeasures in October.
Copyright © TOTO LTD. All Rights Reserved.
2015年度 2016年度 2017年度
14
FY 2017 Results
Financial Results Unit: € million
FY16 FY17 YoY
Net Sales 28 26 ▲2
(▲7%)
Operating Profit ▲4 ▲6 ▲2 ( ー )
Results for local subsidiaries (Europe)
Exchange rates 4Q, FY16 4Q, FY17
1€ ¥117.9 ¥133.0
Decreased sales and profit.
We will continue building distribution channels and promoting adoption in well-known sites.
■ Examples of adoption in famous sites
41(6)
55(10) 72(15)
■European hotels: Cumulative number of hotels Installing Washlets
•Base that does not include consolidated adjustment •and common expense allocations
•Numbers in brackets are the number of
hotels with Washlets in all rooms.
* Cumulative figures from the past.
FY15 FY16 FY17
PALACE HOTEL
A title given to selected high-end hotels, certified by the French Minister of Tourism, has been given to ten hotels, all of which have adopted TOTO products.
Neorest was also adopted by a five star hotel located closed to Place Vendome.
Park Hyatt Paris-Vendôme Hotel(France) ( Certified in 2011 )
Copyright © TOTO LTD. All Rights Reserved. 15
Advanced Ceramic Business
Green Building Materials Business
New Domain Business
FY16 FY17 YoY
Influence of exchange rate
Currency-neutral basis
Net Sales 12.5 20.0 +7.5 (+60%)
+0.5 +7.0 (+57%)
Operating Profit 1.2 1.7 +0.5 (+42%)
+0 +0.5 (+41%)
Operating Margin 10% 9% ▲1pt
Plan vs.Plan
20.2 ▲0.2 (▲1%)
2.3 ▲0.6 (▲23%)
11% ▲2pt
FY16 FY17 YoY
Influence of exchange rate
Currency-neutral basis
Net Sales 8.9 8.4 ▲0.5 (▲7%)
▲0.5 (▲7%)
Operating Profit ▲0.6 ▲0.4 +0.2 (-)
+0.2 (-)
Plan vs.Plan
9.0 ▲0.6 (▲7%)
▲0.4 ▲0 (-)
Driven by the ceramic business, sales and profits surged.
FY 2017 Results
Unit: Y billion
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved.
1. Financial Result for FY 2017
2.Topics
3.Financial Plan for FY 2018
Contents
Copyright © TOTO LTD. All Rights Reserved. 16
“Anshin” remodelling strategy
2018
Remodeling “Anshin” Declaration
Turning customers’ problems into joy
Exceeding customers’ expectations
1993 Remodeling Declaration
2003 New Remodeling
Declaration
Bring more “Anshin” to remodeling
TOTO has always proposed new lifestyles to its customers. While staying true to this tradition, TOTO will further develop the concept of “remodeling”. The latest declaration encapsulates TOTO’s desire to help customers so that they can embark on remodeling with peace of mind.
TOTO is making a new declaration on remodeling
Topics
Copyright © TOTO LTD. All Rights Reserved. 17
“Anshin” remodelling strategy
Topics
We will respond to customers’ questions and concerns with “Visualize and understand”
Remodel Pro Shop
"Visualize and understand" shops where customers can feel reassured
FY2022
5,000 shops
Support Desk for Remodeling
"Visualize and understand" our response to customers’ questions and concerns
From April 2 Available for 365 days
Remodeling Library
"Visualize and understand" examples and approximate prices of remodeling
FY2022 Number of actual cases: 10,000
Showroom "Visualize and understand" the living after
remodeling
Towards having proposal capabilities that are No. 1
Examples including price information
Attractive showroom
Consultation desk for remodeling
Remodeling club shops
Copyright © TOTO LTD. All Rights Reserved. 18
Topics
WASHLET – Global Strategy
We will thoroughly appeal to foreign visitors for “toilet seat with bidet function, that is TOTO WASHLET” so that our efforts will lead to product purchase after returning home.
Washlet, which is positioned as the top priority product in
TOTO’s global growth strategy
Cumulative shipments of
Washlet exceeded 40 million!
Carry out a large-scale promotion targeting foreign visitors at the airport (for international
flight), which is the entrance to and exit from Japan.
In order to popularize Washlets globally,
we will establish the TOTO WASHLET brand.
Connect overseas and domestic strategies for encouraging purchase after returning home.
Copyright © TOTO LTD. All Rights Reserved. 19
Topics
Received internationally recognized design awards
■NEOREST NX: iF design award; Red Dot design award
Received both internationally recognized design awards held in Germany
GS series lavatory faucets
NEOREST NX
ZL series lavatory faucets
■Faucets: iF design award; red dot design award
GA series lavatory faucets
Evaluation on our globally unified product model has been unquestionably increasing internationally
Copyright © TOTO LTD. All Rights Reserved. 20
Topics
Evaluation from outside TOTO
Our manufacturing and CSR efforts are well thought of both inside and outside Japan
Automatic Faucet with Photoelectric Sensor ; Listed as“Building Mechanical and Electrical Engineering Heritage” in FY2017
Received the Invention Award in the National Commendation for Design of urinal to automatically wash
June
June
July
Octo
ber
TOTO was selected as an index member of “FTSE4Good Index Series,” a global index for Social Responsible Investment, for two straight years (announced in July 2017).
The Company has been selected as an index component of "Dow Jones Sustainability Indices (DJSI) Asia Pacific" for nine consecutive years.
Achieved water savings and hygiene requirements for public toilets (no-touch auto functions) Set a starting point for technological progress for the future
The key factors in the winning of this award is the new design offering both ease of use and cleaning efficiency
Our management and information disclosure taking into account ESG (environment, society and governance) factors was well thought of.
Corporate sustainability was well thought of from an ESG viewpoint.
Copyright © TOTO LTD. All Rights Reserved. 21
Topics
New production base
■Vietnam Started operations at the third factory (Sanitary ware)
Reinforce the supply system, with a view to expanding international sales
■Factory Overview
Name TOTO (THAILAND) CO., LTD.
Investment amount
Approximately 3.7billion yen
Factory Overview
Site area :Approximately 49,000㎡ building:Approximately 18,000㎡ (Total floor area)
Production capacity
Approximately 450,000 units per year
■Thailand Started building the third factory (WASHLET)
Name TOTO VIETNAM CO., LTD.
Investment amount
Approximately 9.7 billion yen
Production item Sanitary ware
Production capacity
Approximately 600,000 units per year
■Factory Overview
Copyright © TOTO LTD. All Rights Reserved. 22
Topics
TDY Remodel Collection 2018
Updated the name of the fair and organized it on a large-scale for the first time in three years. In cooperation with TDY, we present remodeling proposals that exceed customer expectations.
Thu., May 17, 2018 – Sat., May 19, 2018 at Makuhari Messe
Organizing of TDY Remodel Collection 2018
(formerly Green Remodel Fairs)
・Showcase the “your dream living” with TDY showrooms for remodeling.
・10 suggested space plans will be exhibited at the Fair.
Copyright © TOTO LTD. All Rights Reserved.
1. Financial Result for FY 2017
2.Topics
3.Financial Plan for FY 2018
Contents
Copyright © TOTO LTD. All Rights Reserved. 23
FY 2018 Plan
New business domains: Increased sales and profits
◆Both remodeling and new housing expect an increase in sales, but a decrease in profit due to aggressive investments.
◆ China plans to increase revenue and profit . Asia and the Americas plan to post lower profit due to aggressive investment etc. ◆ Washlet continues to expand sales
Planning to increase sale and profits. Aiming for an all-time high in both sales and operating income.
Global housing equipment business (Japan): Increase in income
Global housing equipment business (overseas): Increased sales and profits
◆ Planning a significant increase in sales and profits with the growth in the ceramics business.
Copyright © TOTO LTD. All Rights Reserved.
Financial results
■Exchange rates
FY17 FY18Plan
1Q 2Q 3Q 4Q plan
1 $ ¥113.6 ¥111.1 ¥111.0 ¥113.0 ¥106.0
1 CNY ¥16.6 ¥16.2 ¥16.6 ¥17.1 ¥17.0
1 € ¥121.1 ¥122.3 ¥130.4 ¥133.0 ¥133.0
FY 2018 Plan
24
FY17 FY18Plan
YoY Influence of exchange
rete
Currency-neutral basis 1st Half 2nd Half Total
Net Sales 592.3 293.0 327.0 620.0 +27.7 (+5%)
+0.2 +27.5 (+5%)
Operating Profit [Operating Margin]
52.6 [8.9%]
20.7 [7.1%]
33.3 [10.2%]
54.0 [8.7%]
+1.4 (+3%)
+0.2 +1.2 (+2%)
Recurring Profit
54.3 21.6 34.4 56.0 +1.7 (+3%)
+0.6 +1.1 (+2%)
Profit attributable to owners of parent 36.7 13.6 24.4 38.0
+1.3 (+3%)
+0.5 +0.8 (+2%)
ROA 9.4% 9.3%
ROE 11.7% 11.0%
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 25
Whole company
52.6
▲3.3 +16.7
54.0
+8.3 ▲6.6
▲7.4 ▲5.1
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 ・開発投資
販売強化投資 その他 2018年度 営業利益
▲1.2
-Wage improvement
-Improve treatment of retired re-employees etc.
-New product development -New factory in Asia -Strengthening ceramic production development etc.
WASHLET Global Strategy
“Anshin” Remodeling Strategy etc.
While there are increases in sales and cost reduction, we are making aggressive investments with a view to the future, and operating income of +1.4 billion yen
FY 2018 Plan
Depreciation
· development
investment
FY17 operating profit
FY18 operating profit
Others Strengthening investment sales
increase/ decrease in labor costs
Cost reduction
Increase/decrease in sales and product range differences
Influence of raw materials
Unit: Y billion
Cause of increase/decrease of operating profit
Copyright © TOTO LTD. All Rights Reserved.
< Net Sales > FY17 FY18 Plan
YoY Influence of exchange rete
Currency-neutral basis 1st Half 2nd Half Total
Domestic H.E. 425.6 206.0 227.6 433.6 +8.0 (+2%)
+8.0 (+2%)
Overseas H.E. 137.9 70.3 80.2 150.5 +12.6 (+9%)
+0.7 +11.9 (+9%)
New Domain 28.4 16.6 19.1 35.7 +7.3 (+26%)
▲0.5 +7.8 (+27%)
Others 0.2 0.1 0.1 0.2 ▲0 ▲0
Total 592.3 293.0 327.0 620.0 +27.7 (+5%)
+0.2 +27.5 (+5%)
26
FY 2018 Plan
Sales and profit by business segment
< Operating Profit > FY17
FY18 Plan YoY Influence of
exchange rete Currency-
neutral basis 1st Half 2nd Half Total
Domestic H.E. 28.6 9.4 17.8 27.2 ▲1.4 (▲5%)
▲1.4 (▲5%)
Overseas H.E. 26.3 12.0 14.8 26.8 +0.5 (+2%)
+0.3 +0.2 (+1%)
New Domain 1.3 0.9 2.6 3.5 +2.2 (About 2.7 times)
▲0 +2.2 (About 2.2 times)
Others ▲3.7 ▲1.6 ▲1.9 ▲3.5 +0.2 +0.2
Total 52.6 20.7 33.3 54.0 +1.4 (+3%)
+0.2 +1.2 (+2%)
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 27
FY 2018 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
その他 2018年度 営業利益
28.6
+6.0 ▲3.0
▲0.7
▲1.3 ▲1.2 ▲3.0
Cause of increase/decrease of operating profit
▲2.0
27.2
+3.8
- Effect of changes in copper price: ▲0.4 billion yen - Effect of changes in the exchange rate : ▲0.9 billion yen
FY17 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 FY18 operating profit
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 28
Housing Equipment Business(Japan)
Performance by demand
FY17 FY18 Plan YoY
Net Sales 290.1 296.8 +6.7 (+2%)
Operating Profit 24.7 23.5 ▲1.2 (▲5%)
Operating Margin 9% 8% ▲1pt
Remodeling and New Housing; Increase in sales.
FY17 FY18 Plan YoY
Net Sales 135.4 136.7 +1.3 (+1%)
Operating Profit 3.9 3.6 ▲0.3 (▲9%)
Operating Margin 3% 3% ▲0pt
FY 2018 Plan
< Remodeling>
<New Housing>
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 29
Housing Equipment Business(Japan): Plan of Remodeling/New Housing
FY 2018 Plan
For remodeling, sales is expected to increase year on year combined with the market growth and effects from measures including new product launches.
For new housing, plan to increase sales year on year, outpacing the number of new housing. Schedule to factor in the effect of buying rush in anticipation of the consumption tax hike as +1% and +3% for
the second half of FY2018 and for the first half of FY2019 respectively.
Housing starts
regidential ▲1%
290.1 billion yen
296.8 billion yen (+2%)
+1% +1%
FY2017 FY2018
+6.7 billion yen
Due to effect of tax increases +0.5%
Remodeling New Housing
Housing starts
regidential +1%
non regidential +4%
【demand】
【 Sales plan 】
*Including tax increase impact + 1%
Market growth Measures including the launch of new
products
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Net Sales Operating Profit
FY17 FY18 Plan YoY FY17 FY18 Plan YoY
Sanitary Ware 89.9 91.7 +1.8
(+2%) 8.8 8.5
▲0.3 (▲4%)
Washlet 95.1 96.8 +1.7
(+2%) 14.1 13.0
▲1.1 (▲8%)
Faucet Fixtures 93.7 95.9 +2.2
(+2%) 6.6 6.5
▲0.1 (▲3%)
Bathrooms 94.2 96.3 +2.1
(+2%) 1.6 0.9
▲0.7 (▲44%)
Modular Kitchens/Basins
43.0 44.1 +1.1
(+2%) ▲1.9 ▲1.3
+0.6 (-)
Others 9.5 8.8 ▲0.7
(▲8%) ▲0.5 ▲0.4
+0.1 (-)
Total 425.6 433.6 +8.0
(+2%) 28.6 27.2
▲1.4 (▲5%)
Housing Equipment Business(Japan)
Sales per Products
While aiming to increase sales of all products, we expect a decrease in profit due to aggressive investment.
FY 2018 Plan
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved.
Plan to increase sales in all regions
31
FY 2018 Plan
Housing Equipment Business(Overseas)
<Operating Profit> FY17 FY18 Plan YoY Currency-neutral basis
China 18.1 19.5 +1.4 (+7%)
+0.9 (+5%)
Asian & Oceanian Region
6.7 6.2 ▲0.5 (▲9%)
▲0.4 (▲7%)
Americas 2.5 2.3 ▲0.2 (▲9%)
▲0.1 (▲6%)
Europe ▲1.0 ▲1.2 ▲0.2 (-)
▲0.1 (-)
Total 26.3 26.8 +0.5
( +2%)
+0.2 ( 1%)
< Net Sales > FY17 FY18 Plan YoY Currency-neutral basis
China 71.9 80.0 +8.1
(+11%) +6.3 (+9%)
Asian & Oceanian Region
31.6 34.3 +2.7 (+8%)
+3.0 (+10%)
Americas 30.7 31.9 +1.2 (+4%)
+1.7 (+6%)
Europe 3.5 4.3 +0.8
(+20%) +0.6
(+17%)
Total 137.9 150.5 +12.6
(+9%) +11.9
(+9%)
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 32
Financial Results Unit: CNY million
Results for local subsidiaries (China)
FY17 FY18 Plan YoY
Net Sales 4,308 4,700 +392 (+9%)
Operating Profit
1,150 1,225 +75
(+6%)
Operating Margin
27% 26% ▲1pt
Exchange rates FY18 Plan
1CNY ¥17.0
We expect to achieve an increase in sales and profit and aim for sustainable growth.
FY 2018 Plan
-Sales for the first quarter (January to March) grew by 4% year-on-year. -The growth in the unit sales of Washlet : Slight increase compared to the previous year
100
137
2017年度 2018年度
Washlets: Growth in sales volume Cause of increase/decrease of operating profit
Unit: CNY million
1,150
▲39
1,225
+171 ▲57
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
* Base that does not include consolidated adjustment and common expense allocations
(with FY17 as 100 )
FY16 operating income
FY17 operating income
Increase/ decrease in sales
Strengthening investment sales
Production cost FY 18 (Plan) FY 17
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Results for local subsidiaries (Asian & Oceanian Region)
FY17 FY18 Plan YoY
Net Sales 3,606 3,566 ▲40 (▲1%)
Operating Profit
865 795 ▲70 (▲9%)
Operating Margin
24% 22% ▲2pt
■Washlets: Growth in sales volume
Taiwan
Exchange rates FY18 Plan
1 Taiwan dollars ¥3.65
100 105
2017年度 2018年度
Unit: Million Taiwan dollars
FY17 FY18 Plan YoY
Net Sales (For external customers)
3,369 [2,140]
4,236 [2,538]
(+26%) (+20%)
Operating Profit 743 743 ▲0 (▲0%)
Operating Margin 22% 18% ▲4pt
Vietnam Unit: Billion Dong
Exchange rates FY18 Plan
1 dong ¥0.00485
Taiwan: We expect a decrease in sales and profit although the housing market began to show signs of bottoming out. Vietnam: Continue to achieve substantial growth against the backdrop of robust demand.
-Sales for the first quarter (January to March) grew by 2% year-on-year.
Sales for the first quarter (January to March) down by -13% year-on-year.
FY 2018 Plan
* Base that does not include consolidated adjustment and common expense allocations
FY 18(Plan) FY 16
(with FY17 as 100 )
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P/L Unit: $ million
Results for local subsidiaries (Americas)
We expect to achieve an increase in sales and profit centered on the significant sales growth of Washlet.
FY 2018 Plan
FY16 FY18 Plan YoY
Net Sales 274 300 +26
(+10%)
Operating Profit
29 34 +5
(+16%)
Operating Margin
11% 11% +0pt
Exchange rates FY18Plan
1$ ¥106.0
-Sales for the first quarter (January to March) grew by 2% year-on-year. -The growth in the unit sales of Washlet : +15%.
29
+7
34
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
▲9 +6 (with FY17 as 100 )
Washlets: Growth in sales volume
100
146
2017年度 2018年度
124
•Base that does not include consolidated adjustment •and common expense allocations
FY17 operating income
FY18 operating income
Increase/ decrease in sales
Strengthening investment sales
Production cost
FY 18 (Plan) FY 17
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Financial Plan Unit: € million
FY17 FY18 Plan YoY
Net Sales 26 30 +4 (+12%)
Operating Profit ▲6 ▲6 ▲0 ( ー )
Results for local subsidiaries (Europe)
We expect an increase in sales with a flat operating profit.
FY 2018 Plan
Exchange rates FY18 Plan
1€ ¥133.0
*Numbers in brackets are the number of hotels with Washlets in all rooms.
■Prospect of Washlets adoption at luxury hotel
Cumulative : 88(23) YoY :+16(+8)
•Base that does not include consolidated adjustment •and common expense allocations
Sales for the first quarter (January to March) down by -1% year-on-year.
Copyright © TOTO LTD. All Rights Reserved. 36
Advanced Ceramic Business
Green Building Materials Business
New Domain Business
FY17 FY18 Plan YoY
Influence of exchange rete
Currency-neutral basis
Net Sales 20.0 26.7 +6.7 (+33%)
▲0.5 +7.2 (+36%)
Operating Profit 1.7 3.3 +1.6 (+94%)
▲0 +1.6 (+91%)
Operating Margin 9% 12% +3pt
FY17 FY18 Plan YoY
Influence of exchange rete
Currency-neutral basis
Net Sales 8.4 9.0 +0.6 (+7%)
+0.6 (+7%)
Operating Profit ▲0.4 0.2 +0.6 (-)
+0.6 (-)
Plan to make significant growth in the ceramic business against the backdrop of robust
semiconductor demand.
FY 2018 Plan
Unit: Y billion
Unit: Y billion
Copyright © TOTO LTD. All Rights Reserved. 37
FY2016 FY2017 FY2018 Plan
Capital expenditure 26.7 billion yen 38.1 billion yen 58.5 billion yen
Depreciation expenses 19.2 billion yen 21.3 billion yen 24.9 billion yen
R&D expenses 19.4 billion yen 20.5 billion yen 23.3 billion yen
Changes in capital expenditure, depreciation expenses and R&D expenses
FY 2018 Plan
■Breakdown of capital investment (FY2018)
Housing Equipment Business(Japan)
-New product development -Production equipment related etc.
Approximately 30.0billion yen
Housing Equipment Business(Overseas)
・New plant related ・Production equipment related etc.
Approximately 18.0billion yen
New Domain Business ・Ceramic expansion etc. Approximately 10.0billion yen
Copyright © TOTO LTD. All Rights Reserved. 38
FY16 FY17 FY18 Plan
1st Half ¥ 34.0 ¥36.0 ¥45.0
2nd Half ¥ 34.0 ¥36.0 ¥45.0
Full Year ¥ 68.0 ¥72.0 ¥90.0
Dividend payment Ratio
34.9% 33.1% 40.1%
Dividend Plan
Plan to increase the dividend payout ratio to around 40% from this fiscal year onward.
FY 2018 Plan
Annual Dividend :Plan to increase dividend of 18 yen against the previous year
This presentation material contains forward-looking statements based on assumptions,
estimates and plans as of April 27, 2018.
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.