Consolidated Business Results
for the First Half of Fiscal 2020

Bando Chemical Industries, Ltd.
November 11, 2020
Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.

Contents

Ⅰ. First half financial summary for the fiscal
year ending March 31, 2021
Ⅱ. Business forecast for the full fiscal year
ending March 31, 2021

Copyright © 2020 Bando Chemical Industries, Ltd. All Rights Reserved.

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Ⅰ．First half financial summary for thefiscal year ending March 31, 2021

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2/18

FY2020 First Half Highlights（yen mil.）
2019/9Result2020/9Result2021/3Year-on-year

Forecast

Progression

change（11/11）

rate

46,234

37,116-9,117

75,00049.5％Core operating income

2,935

1,325-1,610

2,500

53.0％

Operating income

2,770

1,436

-1,333

2,500

57.5％

Profit before income tax

2,597

1,415-1,182

Profit attributable toowners of parent

2,066

1,028-1,037

1,500

68.6％

Revenue◼
◼

Revenue and core operating income decreased in all segment mainly due to economic decelerationby the spread of the novel coronavirus.
The width of decline in operating income and profit attributable to owners of parent slightly shrank
due to temporary losses in the previous year such as the amendment of retirement benefit plan (447 million yen).
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3/18

FY2020 First Half Revenue by region（¥100 mil.）

247

262

261

211

4349

42

41

17/9

18/9

19/9

20/9

17/9

18/9

19/9

20/9

(JGAAP)(IFRS)(IFRS)(IFRS)(JGAAP)(IFRS)(IFRS)(IFRS)

Japan

China

45
121

124

112

17/9

18/9

19/9

20/9

(JGAAP)(IFRS)(IFRS)(IFRS)

8247453617/9

18/9

19/9

20/9

(JGAAP)(IFRS)(IFRS)(IFRS)

OtherAsia※1 Revenue by region above were after inter-segment elimination.
※2 Revenue in China, including Hong Kong, decreased due to decrease in Advance elastomer products
and other segment despite of increase in Automotive parts and Industrial products segment.
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4/18

FY2020 First Half Core operating income analysis(yen mil.)

2,935-2,555+107
1,325+1,162-177
2019/9 result-148

Sales volumeCost to sales

Gross profit

SGA expense

SGA expensedecreaseratio increase

decrease due

decreasedecrease due

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to effects ofto effects ofFOREX rate

FOREX rate

2020/9 result

5/18

FY2020 First Half Segment performance（yen mil.）

2019/92020/9ResultResultChangeRate of change

46,234

37,116-9,117-19.7%

Automotive Parts

19,972

14,484-5,487-27.5%

Industrial Products

17,015

15,203-1,812-10.7%

Advance Elastomer Products

7,023

5,485

-1,537-21.9%

Other

2,570

2,481-88-3.5%

Adjustments-347-538-191－2,935

1,325-1,610-54.9%

Automotive Parts

1,130

198-932-82.4%

Industrial Products

1,252

1,081-170-13.6%

Advance Elastomer Products213-359-572

－

Other

227

143-83-36.9%

Adjustments

112

261

+149

+132.7%

RevenueCore operating income

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6/18

Automotive Parts overview
Revenue after inter-segment elimination(¥100 mil.)

199

144

200

100

0
19/9

Other(-22.4%)◼ Sales decreased due to the automotive
manufactures cutting production and stopping
operations.

China(+17.4%)◼ Sales of accessory drive power transmission
belts due to the automotive production
remaining strong in China.

Asia(-34.2％)◼ Sales decreased due to the automotivemanufactures cutting production and stoppingoperations.

Japan(-29.5％)◼ Sales of accessory drive power transmission
belts and systems decreased due to decrease inautomotive production.

20/9
Core operating income(¥100 mil.)

11110Core
operatingincome(-82.4％)5019/9◼ Core operating income decreased due todecrease in revenue.

20/9

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7/18Industrial Products overview
Revenue after inter-segment elimination(¥100 mil.)

170

152

150

Other(-15.2%)◼ In U.S., sales of industrial transmission belts
decreased.

100China(+0.8％)◼ Sales of industrial transmission belts slightly
increased.

Asia(+17.5％)◼ In Thailand, sales of transmission belts for
agricultural machinery increased.

Japan(-14.1％)◼ Sales of industrial transmission belts decreased
due to slowdown of machinery orders.
◼ Sales of large-scale conveyor belts and resin
conveyor belts decreased.

50019/9

20/9Core operating income(¥100 mil.)

121010Coreoperating
income(-13.6％)

019/9◼ Core operating income decreased due todecrease in revenue.

20/9

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8/18

Advance Elastomer Products overview
Revenue after inter-segment elimination(¥100 mil.)

70

54

50Films(-19.3％)◼ Sales of films for construction materials,industrial materials and decorate display
decreased mainly due to depression inconstruction starts.

Precision
parts(-23.1％)◼ Sales of cleaning blades, high-performancerollers and precision belts decreased due to maincustomer cutting production.

019/9

20/9
Core operating income(¥100 mil.)

2-3
Coreoperating
income(-500 mil.)

0-4
19/9

◼ Core operating income decreased due todecrease in revenue.

20/9

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9/18

Quarterly transition of business result(¥100 mil.)250：Revenue：Core operating income

237
21200

245

235

25

226

232

230

225

215

20

20197
17

Property tax
and size-based
business tax

Property tax
and size-based
business tax

17150

14-515174-51212

10100

98550
1

001Q2Q

3Q

4Q

FY2018
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1Q

2Q

3Q
Fy20194Q

1Q

2Q
FY202010/18

Transition of cash flow(¥100 mil.)70

CF from operating activities
CF from investing activities
Free CF

54

46
34
20

3720

20

33

190

FY2018 1st half-30-26FY2018 2nd half

FY2019 1st half

FY2019 2nd half

-17-20

FY2020 1st half

-14-80△ 90-124-130※1 CF from operating activities for FY2018 2nd half decreased by 1.4 billion yen due to addressing the revision ofenforcement of “Act against Delay Payment of Subcontract Proceeds, etc. to Subcontractors.”※2 CF from investing activities for FY2019 included payment for acquisition of Aimedic MMT(-9.2 billion yen.）
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11/18

Consolidated Statement of Financial Position（¥100 mil.）

1,097

1,102

1,200

Cash and cash

1,000

800

Cash and cash

equivalents

Debt

equivalents

144

Debt

214

162

226

Trade and otherTrade and otherreceivables

receivables

201

Other liabilities

190

Other liabilities

249

600

220

Inventories 128

Inventories 119

Other assets 13

Other assets 13

・Receivables and inventories
decreased due to decrease inrevenue.(-2 billion)＜Liabilities＞
・Debt increased due toincrease in liquidity on hand in
preparation for the prolonged
novel coronavirus spread.
(+1.2 billion)
・Other liabilitiesdecreased due todecrease in revenue.(-2.9 billion)400
Non-cureent

EquityNon-current

assets 614639

assets 612

Equity650

2000＜Assets＞
・Cash and cash equivalents
increased due to increase inliquidity on hand in
preparation for the prolonged
novel coronavirus spread.
（+1.8 billion）＜Equity＞
・Retained earnings
increased.(+0.5 billion)
・Other components of equity
increased due to fluctuation of
FOREX and stock market.
（+0.5 billion）

20/3

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20/9
12/18

Financial indicator
ROA/ROE

％
10

8.7

60.5

8.2

8.1

5.3

0.61.0

2

1.4

2.3

17/3

18/3

19/3

20/3

21/3

(JGAAP)(IFRS)(IFRS)(IFRS)(IFRS

D/E ratio
34.9

26.3

0

17/3

18/3

19/3

20/3

20/9

(JGAAP)(IFRS)(IFRS)(IFRS)(IFRS)Net cash / Net Debt

10063.3

71.3

41.0
18.7

20.0

50

15.30

10.0
0.0

59.1

20

¥100 mil.
33.7

40.0
30.0

57.7

40ROAROEforecast)

％

66.2

5.3

5.0

40

62.9

6086

Capital ratio

％

-50
17/3

18/3

19/3

20/3

20/9

(JGAAP)(IFRS)(IFRS)(IFRS)(IFRS)

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-100

17/3

18/3

19/3

20/3

20/9

(JGAAP)(IFRS)(IFRS)(IFRS)(IFRS)

-69.8

-63.1
13/18

Ⅱ. Business forecast for the full fiscalyear ending March 31, 2021

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14/18

FY2020 Business forecast（yen mil., ％）2020/3Result2021/3 Forecast
InitialAmendedYear-on-year change

90,24775,00075,000-15,247-16.9%

Core operating income

5,252

2,000

2,500-2,752-52.4％

Operating income

2,056

2,000

2,500+443+21.5％

682

1,000

1,500+817+119.7％

U S D

108.93107.35105.65

T H B

3.51

3.39

3.34

C N Y

15.59

15.11

15.00

Revenue

Profit attributable toowners of parent

Exchangerates(yen)◼

The spread of the novel coronavirus is still having a major impact on the world economy, but weamended our full fiscal year business forecast mainly due to the recovery of the economy and theresult for the first half of the year.
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15/18

Our action
 Strengthened profitability⚫ Cost reduction by integration of domestic business office andreconsideration of fixed overhead cost
⚫ Aggressive sales expansion and diversification of revenue source⚫ Clarification of optimum production sharing and production line innovation

 Continued new products launching⚫ Priority resource allocation to development and launching of new product Spread digital marketing

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16/18

Transition of CAPEX, depreciation and R&D expenses
We reconsidered the capital expenditure plan due to the spread of the novel coronavirus,
but actively continued R&D for the future despite severe business environment.
（¥100 mil.）

60

5245

43

41
40

56

42

43

47

59

44

44

44

29
21

20

200
FY201617/3

FY201718/3

JGAAP

FY201819/3

FY201920/3

FY202020/9
1st half

IFRS
BF-2

Domestic CAPEXOverseas CAPEX

Depreciation & amortization

Depreciation & amortization(Effect of adopting IFRS16)

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CAPEX (Effect of adopting IFRS16)
R&D expenses (Bold, italic)

17/18

Shareholders return
The amount of interim dividend per share will be ￥6 based on the business forecast.
The forecast of year-end dividend per share is still undecided.
Annual dividend per share & Payout ratio
Annual dividend per share (yen)Profit attributable to owners of parent
Dividend paid
ダミー
5,457

Payout ratio

214.3%

24.1%

2626.9%

26.9%

3032

FY2017FY2018

4,951

5,100865

15232
Undecided

FY2016Return of profits

FY2019475(6 or more)

1,207

1,391

1,484

FY2020(FCST)FY2016FY2017FY2018682（yen mil.）

1,500

1,484
FY2019FY2020(FCST)

Basic Policy
Our basic policy is to enhance the return of profits and aim for making stable dividend
payments targeting a consolidated payout ratio 30% over the near term, whileconsidering our earnings and financial position.
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