K.Fujimuro, M.Kitahara, S.Asai and T.Sogame

Transcription

1 K.Fujimuro, M.Kitahara, S.Asai and T.Sogame

2

3 TOTO a Company which makes Plumbing-Related Household Fixtures 3

4 Summary Cost Reduction + Investment Net Sales in Domestic Market Net Sales in Overseas Market Theoretical Share Price (DCF method) : 729 yen Present Share Price ( ): 611 yen 4

5 Domestic Household Fixtures Market New Housing houses

6 Domestic Household Fixtures Market Market Scale of Remodeling A Demand of Domestic Household Fixtures houses

7 TOTO in Domestic Market Focusing on Remodeling -TDY alliance (Tie-Up with YKK AP Inc.& Daiken Corp.) - Remodel Club Stores 7

8 TOTO s Overseas Project Breakdown of Net Sales in Overseas Market(Fiscal Year 2010) 17.2 million yen 3% 104 million yen 19% million yen 50% million yen 28% America China Europe Asia & Oceania 8

9 Chinese Market Further Demand for Housing with Economic Growth Strong Presence in Luxury Brand Have a 40% share of high grade sanitary ware market 9

10 The other Developing Countries India India - the most important country in V-Plan 2017 Further Demand for Housing with Economic Growth 10

11 Cost Reduction Cost Reduction + Financial Surplus Investment Investment Domestic Market Overseas Market 11

12 Cost Reduction-Future Plan V-Plan 2017 : 25 billion (2008~2017) Our Estimation > 25 billion billion yen 50 Cost Reduction-Future Plan

13 Cost Reduction President Harimoto( 張本邦雄 ) The detail of Cost Reduction Combining the factories Stopped making showrooms in surplus Started to share of resource with YKK AP Inc. and Daiken Corp., and structured integrated purchasing system etc. 13

14 Net Sales Estimation Others Overseas Project Domestic Project million 0 yen

15 Valuation DCF method Estimation 10-Year Net Sales Eternal Growth: 1.00% WACC: 4.29% DCF Theoretical Share Price:729 yen A range by Multiple Analysis:523 yen~ 1645 yen 15

16 Conclusion Cost Reduction + Investment Net Sales in Domestic Market Net Sales in Overseas Market Theoretical Share Price (DCF method) :729 yen Present Share Price ( ):611 yen BUY 16

17 Thank You!! 17

18 TOTO Projects Breakdown of the Project's Net Sales The Other 4% Overseas Household Fixtures 13% Domestic Household Fixtures 83% 18

19 Net Sales Forecast DCF method Domestic Market 株価 + Overseas Market = Future Net Sales 19

20 Change of TOTO s Stock Price V-Plan 2017 announced Inouguration of V-Plan 2017 announced Jul-11 May-11 Mar-11 Jan-11 Nov-10 Sep-10 Jul-10 May-10 Mar-10 Jan-10 Nov-09 Sep-09 Jul-09 May-09 Mar-09 Jan-09

21 Breakdown of the Project's Net Sales 165 million yen 4% 557 million yen 13% 1130 million yen 26% Domestic New Housing Household Fixuture Project Domestic Remodeling Household Fixuture Project Overseas Household Fixuture Project New Areas & the Other 2480 million yen 57%

22 Breakdown of Net Sales in Overseas Market 104million yen 17.2million yen 3% 19% 158.8million yen 28% America China Eurpe Asia&Oceania million yen 50%

23 Facility Investment Depliciation (million yen) Facility Investment (million yen) Depliciation (million yen)

24 Breakdown of Facility Investment 9% 0% 2% 3% 2% 3% 81% Domestic household fixture U.S.A China Asia/Oceania Europe New areas

25 5 Forces Analysis

26 Total Sales Operating Margin TOTO INAX Panasonic Electric Works Home TOTO INAX (million yen) 0 (year) Panasonic Electric Works Home

27 ROE TOTO (year) INAX Panasonic Electric Works Home

28 ROA INAX (year) TOTO -0.1 Panasonic Electric Works Home -0.15

29 Total Asset Turnover 0.04 Total Asset Turnover (year) TOTO INAX Panasonic Electric Works Home

30 Current Net Income Ratio (year) TOTO INAX Panasonic Electric Works Home

31 Capital Adequacy Ratio TOTO INAX Panasonic Electric Works Home (year)

32 Net D/E Ratio TOTO Panasonic Electric Works Home (year)

33 Comparison of TOTO and the Competitor's 14% Foreign Sales Ratio (in Fiscal Year 2010) 12% 10% 8% 6% 4% 2% 0% TOTO JS GROUP CORPORATION Panasonic Electric Works Home

34 β y = x

35 Excel Sheet Figures

36 Cost Reduction-Achievement 160 (million yen)

37 Cost Reduction-Future Plan (million yen)

38 Cost Reduction Achivement & Future Plan (million yen) Total Cost Reduction-Achievement Automation of Producting Washlets New Materials Cost Reduction of Manifacturing Restructuring of Factories Distribution Center Inovation of Management Information the Unification of Factories TDY (TOTO, Daiken Corp. and YKK AP Inc.) TDY (TOTO, Daiken Corp. and YKK AP Inc.) Others Total

39 the Number of Existing Houses Under Distribution in Japan

40 New Housing in Japan

41 Market Scale of Remodeling in Japan

42 Market Scale of Remodeling Household Fixture Market (million yen) total plumbing-related household fixtures

43 Market Scale of Remodeling Plumbing- Related Household Fixture Market (million yen) total kitchens bathrooms washlets sinks

44 New Housing in China 3000 (10,000 houses) Number of houses

45 Household Fixtures Market in China TOTO's net sales in China China the luxury high grade sanitary ware market *It is an anticipation value from 2010 onward (10,000yen)

46 China GDP (%)

47 China Real GDP per Capita

48 India GDP 12 (%)

49 Brazil GDP 9 (%)

50 Russia GDP 10 8 (%)

51 Why the eternal growth is 1%? New Housing Million yen Market Scale of Remodeling Million yen

52 Price of Toilet for remodeling