FY2007 Consolidated Result FY2007 Consolidated Result 9 May, 200 - PowerPoint PPT Presentation

1 FY2007 Consolidated Result FY2007 Consolidated Result 9 May, 200 May, 2008 8 9

2 Contents Contents 1. FY07 Consolidated Results 2. FY08 Consolidated Forecasts 3. Appendix

3 FY07 7 Consolidated Results Consolidated Results FY0 FY07 Consolidated Results

4 Scope of Consolidation Scope of Consolidation -FY07 Consolidated Results- -FY07 Consolidated Results- FY06 FY07 Variance Notes (B)-(A) (A) (B) Number of Newly included 6 68 67 -1 consolidated Excluded -7 subsidiaries Number of Newly included 1 32 28 -4 equity method Excluded -5 affiliates 100 95 -5 Total

5 Major P/L & B/S Items Major P/L & B/S Items -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) Item FY06 FY07 Variance *1 *1 655.6 704.2 - 48.6 - Sales Operating 46.8 55.9 59.1 9.0 12.2 income Ordinary 43.1 46.7 49.9 3.5 6.8 income 22.0 24.0 - 2.0 - Net income Item End of FY06 End of FY07 Variance Total assets 714.8 720.8 6.0 Debt 320.0 300.7 -19.2 298.7 275.6 -23.0 Net debt Equity *2 172.5 193.8 21.2 capital Dividend 4.0 5.0 1.0 (Yen /Share) *1 Not accounting for change in depreciation method *2 Equity capital = Total assets - Share acquisition rights - Minority interests

6 Non Operating Items Non Operating Items -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) Item FY06 FY07 Variance 46.8 55.9 9.0 Operating income -6.4 -5.9 0.4 Net interest expense Non operating Equity in profit of 1.8 1.3 -0.5 unconsolidated subsidiaries items and affiliated companies Foreign currency 2.8 0.0 -2.9 translation profit/loss -2.0 -4.4 -2.4 Others -3.7 -9.1 -5.4 Total 43.1 46.7 3.5 Ordinary income

7 Extraordinary Items Extraordinary Items -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) Item FY06 FY07 Variance Gain on contribution of securities 2.9 2.3 -0.5 to retirement benefit trust Others(Incl. gain on sale of PP&E) 3.0 1.2 -1.7 5.9 3.6 -2.2 Extraordinary income Impairment loss -5.7 -5.9 -0.2 -2.9 -2.1 -0.7 Loss on disposal of PP&E Loss on valuation of inventories -2.0 0.0 2.0 Others -2.4 -1.3 1.0 Extraordinary loss -13.1 -9.4 3.6 -7.1 -5.8 1.3 Net extraordinary income/loss

8 Operating Income – Net Income Operating Income – Net Income -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) Item FY06 FY07 Variance 46.8 55.9 9.0 Operating income -3.7 -9.1 -5.4 Non operating item 43.1 46.7 3.5 Ordinary income -7.1 -5.8 1.3 Extraordinary item Income before income tax 36.0 40.8 4.8 and minority interest Income Tax and -13.9 -16.8 -2.8 Minority Interest 22.0 24.0 2.0 Net income Net income per share 21.88 23.88 2.00 (Yen / Share)

9 Environmental Factors Environmental Factors -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) Impacts on Item FY06 FY07 Variance Consolidated OP Income -2.7 1.0 117.0 114.3 Exchange Rate Yen/$ $/ ｔ 596 748 152 -3.3 (CIF) Material Price Naphtha 50.0 61.5 11.5 (-3.0) Yen/L (Domestic) 997 1,080 83 -3.6 $/ ｔ Benzene (Average of US and Euro (-3.6) Contract Price) Australian $/ ｔ 74.0 96.5 22.5 -6.3 Coal (CIF) 8,658 11,030 2,372 (-5.4) Yen/t ( ) : including impacts on fluctuation of exchange rate

10 Sales by Segment Sales by Segment -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) FY06 FY07 Major Factors Segment Variance Chemicals & 210.4 233.2 22.8 Caprolactam chain 20.2 Plastics Specialty Chemicals 88.3 93.5 5.1 Fine chemicals & Pharmaceuticals 3.8 & Products Cement and ready mixed-concrete -4.6 Cement & 207.8 207.0 -0.8 Building materials -1.5 Construction Materials Quick lime related product 4.5 Steel products 5.5 83.2 91.6 8.5 Machinery Machinery & Industrial machineary 3.1 Metal Production in Japan 1.1 Aluminum Products 31.0 28.6 -2.3 wheels Production in Canada -3.5 Energy & 30.9 46.4 15.4 Coal 13.3 Environment 3.8 3.6 -0.1 Others Total 655.6 704.2 48.6 Increased by 7.4%

11 Operating Income by Segment Operating Income by Segment -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) FY06 FY07 Variance Actual Segment (A) (B) (C) *1 Major Factors (B)-(A) Variance (C)-(A) *1 Chemicals & 13.7 18.6 19.7 4.8 5.9 Caprolactam chain 6.0 Plastics Specialty Chemicals Fine chemicals & Pharmaceuticals 4.2 11.5 14.1 14.6 2.6 3.1 & Products Specialty products -0.7 Cement & 12.4 10.8 12.0 -1.5 -0.3 Cement and ready mixed-concrete -0.4 Construction Materials 7.6 8.2 8.3 0.6 0.7 Industrial machinery 0.5 Machinery Machinery & Metal Aluminum Products -2.1 -1.6 -1.4 0.4 0.6 Production in Canada 0.6 wheels Energy & 2.7 4.6 4.8 1.9 1.9 Coal 1.8 Environment 0.7 0.8 0.8 0.0 0.1 Others Total 46.8 55.9 59.1 9.0 12.2 Actually increased by 26.2% *1 Not accounting for change in depreciation method

12 Analysis of Operating Income Analysis of Operating Income -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) Operating income Segment FY06 FY07 Variance Price Sales Fixed Change in Others *1 Volume Cost Regulation (A) (B) (B)-(A) *2 Chemicals 13.7 18.6 4.8 5.8 1.1 -1.7 -1.1 0.6 &Plastics Specialty Chemicals & 11.5 14.1 2.6 -0.5 3.6 -1.6 -0.5 1.6 Products Cement & Construction 12.4 10.8 -1.5 0.7 -1.5 0.2 -1.2 0.3 Materials *3 Machinery & Metal 5.5 6.6 1.1 -0.4 -0.4 0.2 -0.3 2.0 Products Energy & 2.7 4.6 1.9 0.9 1.3 -0.7 -0.1 0.6 Environment 0.7 0.8 0.0 0.0 0.0 0.0 0.0 0.1 Others Total 46.8 55.9 9.0 6.6 4.2 -3.5 -3.2 5.1 *1 Including both selling and purchase price variances *2 Impact for change in depreciation method *3 Marginal profit on machinery products 1.1

13 Consolidated Balance Sheet Consolidated Balance Sheet -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) Item FY06 FY07 Variance 286.9 297.8 10.9 Current assets 427.8 422.9 -4.9 Fixed assets 714.8 720.8 6.0 Total assets 320.0 300.7 -19.2 Interest-bearing debts 199.6 201.1 1.4 Other liabilities 519.6 501.8 -17.8 Total liabilities * １ 172.5 193.8 21.2 Equity Capital 22.6 25.1 2.5 Minority interest 195.1 219.0 23.8 Total net assets Total liabilities and net 714.8 720.8 6.0 assets *1 Equity capital = Total assets - Share acquisition rights - Minority interests

14 Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows -FY07 Consolidated Results- -FY07 Consolidated Results- (Billion Yen) Item FY06 FY07 Income before tax and minority A. Cash flows from operating interest 40.8 54.3 58.8 activities Depreciation and amortization 34.1 Corporate Tax, etc -12.7 B. Cash flows from investing -28.4 Acquisition of PP&E -30.9 -27.1 activities Proceeds from sale of securities 1.7 Free cash flows (A+B) 27.2 30.4 Decrease in interest-bearing debts -37.6 C. Cash flows from financing -27.5 -28.6 Bond issuance and redemption 13.5 activities Devidents -4.4 D. Net increase/decrease in 0.3 3.5 cash and cash equivalents E. Cash and cash equivalents 21.2 25.0 at end of the year

15 Business Highlight Business Highlight -FY07 Consolidated Results- -FY07 Consolidated Results- 1. Chemicals & Plastics � Ube Industries commenced hydrogen peroxide joint venture with Mitsubishi Corporation named UBE-MC Hydrogen peroxide Ltd., which was formed out of Kemira-Ube Ltd. (January 2008) � Thai Caprolactam Public Co., Ltd. of Thailand gains approval from Thailand government for nitrous oxide (N 2 O) reduction project based on clean development mechanism (CDM), following approval from Japanese government . (February 2008) 2. Specialty Chemicals and Products � Construction for ninth expansion of production facilities for polyimide film was completed (September 2007). Ube Industries also commenced construction of 10th and 11th expansion of production facilities for polyimide film at Sakai Factory. (February 2008) � Ube Industries completed construction for 2nd and 3rd expansion of production facilities for polyimide hollow fibers used for gas separation membranes. (October 2007 and February 2008) � Ube Industries launched three commercial products for growing cosmetics market, porous nylon spherical particle (POMP), Ube-Fucoida and natural-based synthetic ceramide II.