4Q 2017 Performance Results

Transcription

1 4Q 2017 Performance Results INDUSTRIES, INC. February 9, 2018 All 4Q 2017 management performance and financial data in this report are consolidated or parent earnings results based on K-IFRS. The operating profit in this report was rewritten considering the changes made in 'indicating financial statements' of financial accounting standards This report has been drawn up for investors without receiving complete external auditing. It must be considered that some data may be revised in the process of external auditing. The data contains prospective information for the future, including the company s business prospect in the 1Q 2018 and further on. The prospective information has been drawn up considering the current market condition and the company s business strategy at present. Accordingly, it should be taken into consideration that this information may be modified depending on the environmental changes of markets and the company s strategic alteration.

2 CONTENTS 1. Performance results overview P Q 2017 Performance 2_1 Divisional Results 2_2 Non-operating Profit & Loss 2_3 Debt and Financial ratio P.5 P.10 P Appendix 3_1 Statement of Financial Position 3_2 Statement of Income(Consolidated) 3_3 Statement of Income(Non-consolidated) 3_4 Cash Flows 3_5 Group Structure P.12 P.13 P.14 P.15 P.16 2

3 1. Results overview Industrial Material Percentage of Sales Chemical Film/electronic materials Fashion 1,315 1,249 1,152 1,137 1,097 Percentage 24% of Sales Fashion material, etc 9% Percentage of Sales 1,573 1,669 1,759 1,740 1,719 37% 1,039 1,274 1,019 Percentage of Sales % Percentage of Sales 11% M M Functional fibers - Polyester tire cord, airbag cushion, technical yarn High performance fibers - Aramid Non-woven fabrics - Artificial leather, spunbond, membrane filter Subsidiary( GLOTECK, PLASTICS) - Fabric & yarn for car seat, Engineering plastic Hydrocarbon resin - For glue, paint, diaper, sanitary towel Phenolic resin - For industrial glue, cast, abrasive cloth, paint Epoxy resin - For electronic circuit, epoxy molding compound Polyester Film - For packaging, optical film, solar protect film, industrial use film Electronic materials - Light diffuser film/plate, prism film, dry film resist, overcoat Outdoor, sports, golf - SPORT, HEAD, ELORD, Jack Nicklaus, HONMA Men wear, casual - CAMBRIDGE MEMBERS, Customellow, Series Accessory, women wear - COURONNE, Suecomma Bonnie, Lucky Chouette Polyester chip Subsidiary( FASHION MATERIAL) - Polyester yarn and fabric for clothes - Nylon yarn and fabric for clothes Etc 3

4 1. Results overview 4Q16 1Q17 2Q17 3Q17 4Q17 Sales 1,240 1,150 1,124 1,086 1,247 OP (OPM) 65 (5.2%) 46 (4.0%) 54 (4.8%) 46 (4.2%) 52 (4.2%) Pre-tax profit Net profit Sales increased QoQ mainly from seasonality factor in Fashion division. Operating profit improved QoQ on the back of expanded sales of Fashion division, but declined YoY due to rising raw material prices, FX effects, and sluggish earnings of subsidiaries. 4

5 5 2_1. Divisional Results Industrial materials Consolidated earnings (Kolon Industries, Kolon Glotech, Kolon Nanjing Co.,LTD, Kolon Plastics, etc) ,759 1,740 1,719 1,669 1, % % % % % 23 4Q16 1Q17 2Q17 3Q17 4Q17 Sales OP OPM Operating profit decreased QoQ and YoY from Kolon Glotech s sluggish earnings, high raw material prices, and KRW depreciation.

6 6 2_1. Divisional Results Chemical Consolidated earnings (Kolon Industries, (SUZHOU) COMPANY LIMITED) ,274 1,039 1, % 9.9% 11.4% 11.5% 10.8% Hydrocarbon resin 4Q16 1Q17 2Q17 3Q17 4Q17 Sales OP OPM Phenolic resin Sales remained flat QoQ but OP fell slightly due to rise in epoxy resin raw material price and KRW depreciation. Epoxy resin

7 2_1. Divisional Results Film/Electronic Materials Consolidated earnings (Kolon Industries, KIN, KHC, etc) % -2.6% -2.8% -3.5% Q16 1Q17 2Q17 3Q17 4Q17 DFR PET Film Sales OP OPM -7.9% Loss in Q increased due to sluggish market conditions and increased one-off expenses. 프리즘필름 CPI Film 7

8 8 2_1. Divisional Results Fashion Consolidated earnings (Kolon Industries, etc) 1,315 1,249 1,152 1,137 1, % % % 4.5% % 4Q16 1Q17 2Q17 3Q17 4Q17 Sales OP OPM (Ⅰ) Outdoor (Ⅱ) Sports & Golf (Ⅲ) Man Q earnings were up QoQ and YoY from strong seasonality along with increased padded jumper sales. (Ⅳ) Casual (Ⅴ) Accessory&Woman

9 9 2_1. Divisional Results Fashion material, etc Consolidated earnings (Kolon Industries, Kolon Fashion Material, etc) % -9.7% -9.2% -7.1% -15.0% (Ⅰ) Kolon Industries Q16 1Q17 2Q17 3Q17 4Q17 Sales OP OPM (Ⅱ) Kolon Fashion Material Loss increased in Q due to increased inventory disposals and one-off expenses along with weak seasonality factor from Kolon Industries.

10 10 2_2. Non-operating Profit & Loss (Unit: Wbn) Q15 2Q15 3Q15 4Q Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Operating Profit Other income(losses) Finance income(losses) Gain (loss) on disposal of investments in associates and joint ventures Pre-tax Income Other income(losses) fell QoQ due to inventory disposals. Equity Method Income(losses) on Investments (Unit: Wbn) SKC PI HANA Capital (Share : 27.0%) (Share : 42.6%) Q16 3Q17 3Q17 4Q16 3Q17 4Q17

11 11 2_3. Debt and financial ratio Change in borrowings / Net Debt Ratio Consolidated Kolon Industries 1,919 1,772 2,118 2,103 2,038 2,026 Total Debt 1,372 1,353 1,531 1,528 1,555 1,551 83% 91% 87% Net Debt Net Debt Ratio 81% 88% 88% 4Q16 3Q17 4Q17 4Q16 3Q17 4Q17 Financial ratio 4Q16 3Q17 4Q17 Interest Coverage Ratio(Times) Debt ratio (%) 147% 146% 143% Capital ratio (%) 40% 41% 41% Total borrowings and bonds payable to total assets (%) 37% 39% 37% 4Q16 3Q17 4Q17

12 12 3_1. Statement of financial position IFRS (Consolidated) Total Assets 4,720 4,749 4,986 5,249 5,662 Current assets 1,938 1,938 1,945 2,068 2,095 Non-current assets 2,782 2,811 3,041 3,182 3,567 Liabilities 2,774 2,740 3,022 3,124 3,340 Current liabilities 1,686 1,744 1,828 1,953 2,126 Non-current liabilities 1, ,193 1,171 1,213 Equity 1,946 2,009 1,964 2,125 2,322 Controlling Shareholders' Equity 1,818 1,884 1,832 1,981 2,183 Capital Capital Surplus Treasury Stock Consolidated Retained Earnings Accumulated Other Comprehensive Income Hibrid Bond

13 13 3_2. Income Statement (Consolidated) Q15 2Q15 3Q15 4Q Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Sales 5,338 1,201 1,235 1,148 1,274 4,857 1,151 1,134 1,037 1,240 4,562 1,150 1,124 1,086 1,247 4,607 Ind. Materials 1, , , ,719 Chemical 1, , Film Fashion 1, , , ,097 Others Operating profit Ind. Materials Chemical Film Fashion Others Other income(losses) Finance income(losses) Equity method income (losses), losses on Sale of Equity Securities Pre-tax profit Net profit EBITDA ,99

14 3_3. Income Statement (Non-consolidated) Q15 2Q15 3Q15 4Q Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Sales 3, , , ,210 Ind. Materials Chemical 1, Film Fashion 1, , , ,070 Others Operating profit Ind. Materials Chemical Film Fashion Others Other income(losses) Finance income(losses) Equity method income (losses), losses on Sale of Equity Securities Pre-tax profit Net profit

15 15 3_4. Cash Flows(Consolidated) Beginning Net Profit Depreciation Amortization Acquisitions of Tangible Acquisitions of Intangible Dividends Paid Others Ending

16 3_5. Group structure CHAIRMAN 47.4% CORPORATION Manufacturing company Audi Dealer Pharmaceutical company IT service company Environmental company Construction & trading company 32.2% 99.3% 20.3% 48.1% 27.5% 51.0% 99.5% 75.2% INDUSTRIES AUTO LIFE SCIENCE PHARM TissueGENE BENIT ECO ONE GLOBAL 88.9% 90.0% NANJING(KNC) SUZHOU INDUSTRIES equity structure 78.8% 79.8% PT INA GLOTECK 48.6% Common Share 25,659, % CORPORATION National Pension Service KB Asset Management (As of 9 th Feb, 2018) (As of 30 th Dec, 2017) (As of 31 th Dec, 2017) 66.7% PLASTICS(KPL) 6.3% 13.6% Other 66.7% FASHION MATERIAL(KFM) 16