1 Information Meeting 2005 Information Meeting 2005 May, 2005 May, 2005 UBE INDUSTRIES, LTD. UBE INDUSTRIES, LTD.
2 Contents Contents 1. Summary …. P. 3 2. FY04 Consolidated Results …. P.11 3. FY05 Consolidated Forecasts …. P.24 4. Appendix – Company Profile – …. P.33
3 Summary Summary Summary
4 Summary of FY04 Consolidated Results (1) Summary of FY04 Consolidated Results (1) Summary of FY04 Consolidated Results (1) [Profit/Loss] Profit/Loss] [ Large gains in net sales, operating income, ordinary income, and net income were net income were Large gains in net sales, operating income, ordinary income, and achieved. Operating income increased by 46.8% Operating income increased by 46.8% achieved. Chemicals & Plastics : While prices of raw materials rose, selli Chemicals & Plastics : While prices of raw materials rose, selling prices also advanced steadily due to a ng prices also advanced steadily due to a favorable supply and demand balance, for a major improvement in performance. performance. favorable supply and demand balance, for a major improvement in This results, howe This results, however, includes 2.5 billion yen in inventory valuation profit. ver, includes 2.5 billion yen in inventory valuation profit. Specialty Chemicals & Products : While specialty products were Specialty Chemicals & Products : While specialty products were affected by the business slowdown in the affected by the business slowdown in the digital home appliance market that began during the summer months, hs, digital home appliance market that began during the summer mont sales volume for the full fiscal year showed steady expansion. sales volume for the full fiscal year showed steady expansion. Pharmaceuticals also showed a recovery in sales volume, for improved Pharmaceuticals also showed a recovery in sales volume, for imp roved profitability. profitability. Machinery & Metal Products : Productivity at the two North Ame Machinery & Metal Products : Productivity at the two North American aluminum wheel plants failed to rican aluminum wheel plants failed to improve, and loss mounted. A decision was made to liquidate U.S. plant e, and loss mounted. A decision was made to liquidate U.S. plants, and s, and improv the extraordinary loss required for the liquidation process has already been already been the extraordinary loss required for the liquidation process has booked in the reserve account. booked in the reserve account. Cement & Construction Materials : Increased acceptance of indust Cement & Construction Materials : Increased acceptance of industrial waste and improved selling price of rial waste and improved selling price of cement partially counteracted the effects of rising coal prices and es and cement partially counteracted the effects of rising coal pric a decline in domestic cement demand, for a moderate decline in profits. n profits. a decline in domestic cement demand, for a moderate decline i
5 Summary of FY04 Consolidated Results (2) Summary of FY04 Consolidated Results (2) Summary of FY04 Consolidated Results (2) [Assets & Liabilities] Assets & Liabilities] [ While cash obtained from asset sales and real estate liquidation declined, improved declined, improved While cash obtained from asset sales and real estate liquidation income and the issue and conversion of CB resulted in income and the issue and conversion of CB resulted in a reduction of 11.7 billion yen in a reduction of 11.7 billion yen in interest- -bearing debt, to 397.9 billion yen. (Net interest bearing debt, to 397.9 billion yen. (Net interest- -bearing debt fell by 16.6 billion bearing debt fell by 16.6 billion interest yen, to 364.5 billion yen.) yen, to 364.5 billion yen.) [Stockholders’ [Stockholders ’ Equity] Equity] Complete conversion of CB combined with the net income results to increase o increase Complete conversion of CB combined with the net income results t stockholders stockholders’ ’ equity equity (from 85.7 to 108.3 billion yen) (from 85.7 to 108.3 billion yen). . Dividend payments were resumed Dividend payments were resumed at 2 yen per share. at 2 yen per share.
6 Forecasts of FY05 Major Businesses (1) Forecasts of FY05 Major Businesses (1) Forecasts of FY05 Major Businesses (1) [Chemicals & Plastics] Chemicals & Plastics] [ � With demand firm, the market environment continues to be favora � With demand firm, the market environment continues to be favorable for both ble for both caprolactam chain products and synthetic rubbers. chain products and synthetic rubbers. caprolactam � The favorable effects of widening the spread, which came into v � The favorable effects of widening the spread, which came into view in the second half iew in the second half of FY04, should contribute fully to performance in FY05. of FY04, should contribute fully to performance in FY05. � High prices for raw materials in FY04 resulted in inventory val � High prices for raw materials in FY04 resulted in inventory valuation profits that uation profits that pushed up income. These high prices are expected to level off in FY05, however, and FY05, however, and pushed up income. These high prices are expected to level off in the inventory valuation profits of FY04 to turn into a negative factor. the inventory valuation profits of FY04 to turn into a negative factor. [Specialty Chemicals & Products] [Specialty Chemicals & Products] � The slowdown in digital home appliance market that began in the � The slowdown in digital home appliance market that began in the second half of second half of FY04 is expected to continue into the first half of FY05. A full recovery is expected in recovery is expected in FY04 is expected to continue into the first half of FY05. A full the second half. Assume that product prices should continue to drop. rop. the second half. Assume that product prices should continue to d � � The pharmaceutical business are expected to be flat. The pharmaceutical business are expected to be flat.
7 Forecasts of FY05 Major Businesses (2) Forecasts of FY05 Major Businesses (2) Forecasts of FY05 Major Businesses (2) [Cement & Construction Materials] Cement & Construction Materials] [ � High prices for coal, heavy oil, and other fuel are expected to � High prices for coal, heavy oil, and other fuel are expected to reduce profits by 2.6 reduce profits by 2.6 billion yen. billion yen. � Domestic demand for cement will continue to decline (from 57.57 � Domestic demand for cement will continue to decline (from 57.57 in FY04 to 56.0 in FY04 to 56.0 million tons in FY05) million tons in FY05) � � Industrial waste processing is planned to increase by 1.5 billi Industrial waste processing is planned to increase by 1.5 billion yen. Passing on costs on yen. Passing on costs associated with cement prices is an urgent issue. associated with cement prices is an urgent issue. [Machinery & Metal Products] [Machinery & Metal Products] � The market of die � The market of die- -casting machines continues to be favorable. While industrial casting machines continues to be favorable. While industrial machinery and bridges should show improved profits, steel and ot machinery and bridges should show improved profits, steel and other products are her products are expected to lose ground. expected to lose ground. � Liquidation of aluminum wheel plant in U.S. is expected to elim � Liquidation of aluminum wheel plant in U.S. is expected to eliminate the operating inate the operating loss in this area. The Canada plant, meanwhile, has improved its yields and operating yields and operating loss in this area. The Canada plant, meanwhile, has improved its profit position, despite the recent appreciation of the Canadian dollar. In Japan, profit position, despite the recent appreciation of the Canadian dollar. In Japan, demand from customers for reduced costs is increasing. demand from customers for reduced costs is increasing. [Energy & Environment] [Energy & Environment] � The amount of coal handled in the Coal Center is expected to dr � The amount of coal handled in the Coal Center is expected to drop from FY04 levels. op from FY04 levels.
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