Toagosei Co., Ltd. · TSE:4045
Toagosei — 2Q FY2022 Earnings Presentation
31 slides from Toagosei's earnings presentation, Aug 4, 2022
Slide 1: Financial Results for 2Q FY2022
Financial Results for 2Q FY2022 August 4, 2022
Slide 2: Overview of Results for 2Q FY2022
Overview of Results for 2Q FY2022 2Q FY2021 2Q FY2022 Change 77,977 3,813 5.1% Net sales (Millions of yen) 74,164 [82,030] [7,865] [10.6%] 7,891 (1,129) (12.5%) Operating income (Millions of yen) 9,021 [7,922] [(1,098)] [(12.2%)] 10.1% (2.0) Operating income ratio 12.2% ー [9.7%] [(2.5)] Ordinary inc
Slide 3: Summary of Financial Results for 2Q FY2022
Summary of Financial Results for 2Q FY2022 <Business Environment> • Supply chains were disrupted by the shortage of semiconductors and lockdowns in China. It was possible to see a trend for production adjustments in the automotive industry and electrical/electronic-related industries. • Russia’s inv
Slide 4: Consolidated Results (by Segment)
Consolidated Results (by Segment) (Millions of yen) Net sales when Change when not 2Q FY2021 2Q FY2022 Change Net sales not applied Volume Unit price applied A B C B－A CーA Commodity Chemicals 32,883 35,178 36,244 (1,197) 3,492 2,294 3,360 Polymer & Oligomer 16,486 18,000 19,197 586 924 1,513 2,710 A
Slide 5: Overview of Consolidated Subsidiaries (Results for 2Q FY2022)
Overview of Consolidated Subsidiaries (Results for 2Q FY2022) (Millions of yen) Net income (loss) attributable to Ownership Net sales Operating income (loss) Company name Segment owners of parent (%) 2Q FY2021 2Q FY2022 2Q FY2021 2Q FY2022 2Q FY2021 2Q FY2022 Commodity 1,718 1 Toa Techno-Gas Chemica
Slide 6: Consolidated Statement of Income
Consolidated Statement of Income (Non operating Income/Expenses and Extraordinary Income/Losses ) [Non-operating income/expenses] (Millions of yen) [Extraordinary income/losses] (Millions of yen) 2Q FY2021 2Q FY2022 Change 2Q FY2021 2Q FY2022 Change Interest and dividend Gain on sales of income 600
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet (Millions of yen) Dec. 31, Jun. 30, Dec. 31, Jun. 30, Change Change 2021 2022 2021 2022 Current assets 145,168 143,513 (1,655) Total liabilities 52,343 56,574 4,231 Notes and accounts Cash and deposits (1) 52,457 45,912 (6,545) payable (2) 18,391 21,459 3,067 Notes and acc
Slide 8: Consolidated Cash Flow Statements
Consolidated Cash Flow Statements (Millions of yen) 2Q 2Q Change FY2021 FY2022 Cash flows from operating activities A 13,591 11,190 (2,400) Cash flows from investment activities B (13,283) (9,270) 4,013 Free cash flow C=A+B 307 1,919 1,612 Cash flows from financial activities D (2,276) (6,147) (3,87
Slide 9: Challenges in the 2nd Half of FY2022
Challenges in the 2nd Half of FY2022 A sense of uncertainty about the future remains. That is due to Russia’s invasion of Ukraine, supply chain disruptions, and soaring raw fuel and resource prices. Severe conditions are expected to continue. We will continue proactive activities to secure profits t
Slide 10: Forecast for the Full FY2022
Forecast for the Full FY2022 9
Slide 11: Consolidated Results Forecast for FY2022
Consolidated Results Forecast for FY2022 (Millions of yen) FY2021 Results 1H FY2022 2H FY2022 Revised Change (B-A) (A) Results Forecast FY2022(B) Net sales 156,313 77,977 82,023 160,000 3,687 Operating income 17,676 7,891 9,109 17,000 (676) Operating income ratio 11.3% 10.1% 11.1% 10.6% (0.7%) Non-o
Slide 12: Consolidated Results Forecast for FY2022 (by Segment)
Consolidated Results Forecast for FY2022 (by Segment) Net sales (Millions of yen) FY2022 FY2021 Forecast Change without Results After Applying the Before Applying the Change Accounting standard Factors for change B-A application Revenue Recognition Revenue Recognition Standards Standards A B C B-A C
Slide 13: Comparison with 2022 Medium-Term Management Plan
Comparison with 2022 Medium-Term Management Plan 2Q FY2022 FY2022 Forecast Results FY2022 MTP After Applying the Before Applying the After Applying the Before Applying the Targets Revenue Recognition Revenue Recognition Revenue Recognition Revenue Recognition Standards Standards Standards Standards
Slide 14: Trends in Consolidated Results
Trends in Consolidated Results (Millions of yen) (Yen) 30,000 120.00 28,299 27,500 108.14 25,397 24,782 105.38 25,000 100.00 98.08 96.85 23,039 22,184 20,000 78.91 80.00 17,453 17,676 17,000 16,408 62.43 15,000 13,782 13,771 60.00 12,911 12,748 13,000 12,336 10,387 10,000 40.00 8,142 5,000 20.00 0 0
Slide 15: Reference for Consolidated Performance
Reference for Consolidated Performance (Billions of yen) FY2022 FY2017 FY2018 FY2019 FY2020 FY2021 (forecast) Capital investment (acceptance basis) 10.0 12.5 15.8 13.6 11.9 20.4 Capital investment (approval basis) 22.1 17.0 16.9 11.8 24.9 32.3 Depreciation and amortization 7.9 8.3 9.2 9.8 10.6 10.5
Slide 16: Reference Trends for Consolidated Performance
Reference Trends for Consolidated Performance (Millions of yen) (Millions of yen) 210,000 206,787 50,000 201,764 193,764 192,885 40,000 186,419 182,624 79.8% 78.4% 78.3% 30,000 77.9% 77.3% 76.5% 170,000 20,000 12,150 11,692 11,534 11,376 11,208 11,065 10,000 130,000 0 FY2017 FY2018 FY2019 FY2020 FY2
Slide 17: EBITDA/PP&E Ratio Trends
EBITDA/PP&E Ratio Trends (Millions of yen) (Millions of yen) 100,000 50,000 88,093 78,301 78,193 40,000 74,376 67,083 62,663 28,300 27,500 30,000 25,397 40.5% 24,782 50,000 23,039 22,184 36.9% 35.3% 20,000 31.0% 31.2% 28.3% 10,000 0 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 (forecast) PP&E (left s
Slide 18: Shareholder Return Trends
Shareholder Return Trends Total return ratio 150.0% 95.4% 100.0% 67.0% 62.1% 28.9% 38.0% 50.0% 24.8% 26.5% 0.0% (Millions of yen) (Yen) 9,000 36 36 38 8,000 36 7,000 34 4,300 4,000 6,000 3,882 32 30 5,000 30 30 28 4,000 28 26 26 3,000 26 4,554 4,404 2,000 3,685 3,948 3,881 24 3,422 3,422 1,000 22 0
Slide 19: Operating Income Trends
Medium Term Management Plan “Stage up for the Future”: Operating Income Trends High-value-added (Billions of yen) Commodity products products 17.5 17.7 17.0 17.0 16.1 16.4 13.8 5.0 6.8 6.3 Commodity 12.0 12.3 5.9 7.1 12.3 8.0 Products 9.0 3.1 5.5 3.6 4.0 4.8 4.1 10.2 10.7 High-value- 10.7 9.2 added
Slide 20: ESG Initiatives E S
ESG Initiatives Jun. 2019 Endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) Aug. 2021 Held an event for the Riko Challenge (science and technology challenge) organized by the Cabinet Office, Ministry of Education, Culture, Sports, Science and Technology (
Slide 21: ESG Initiatives G
ESG Initiatives Mar. 2019 Abolished anti-takeover measures Mar. 2019 Elected a female director for the first time Mar. 2020 Introduced a restricted share remuneration system for directors Oct. 2021 Revised the Toagosei Group Basic Policy on Corporate Governance • Aim for improved shareholder returns
Slide 22: Topics: Drug Delivery System
Topics: Drug Delivery System Drug Delivery System (DDS) We have developed the NUCLEROLARON® cellular membrane permeable peptides suitable for DDS in systems that deliver drugs to targeted cells. Features • Can deliver drugs to inside the brain. • It is cellular membrane permeable. Therefore, it is p
Slide 23: Topics: Thermal Energy and Distribution Center
Topics: Thermal Energy and Distribution Center Effective Use of Thermal Energy No carbon dioxide emissions We have started jointly considering with Yokohama City Water Garbage Steam Incineration Various the effective use of steam in heat facilities Yokohama Plant generated from Boiler garbage incine
Slide 24: Topics: Hydrogen Station
Topics: Hydrogen Station Hydrogen Station Tokushima We held the opening ceremony on April 15 and officially started operation together with the Toagosei H2 Hydrogen Shuttle mobile hydrogen station. This is hydrogen station with a direct connection to manufacturing and supply that provides hydrogen m
Slide 25: Topics: Aron Alpha
Topics: Aron Alpha Aron Alpha Tough Power Now on Sale We have improved water and heat resistance compared to existing products and made the container easier to use. Can be used immediately after We use elastomers to make it removing the cap. Open in one easy to control the liquid volume! step! The
Slide 26: Reference Materials
G* TOAGOSE! Reference Materials
Slide 27: Sub-segment Year-on-Year Comparison of Net Sales (Commodity Chemicals)
Sub-segment Year-on-Year Comparison of Net Sales (Commodity Chemicals Business) Year-on-year Comparison Commodity Chemicals Reason for the Change Business 2Q 1Q-2Q (Cumulative Total) Sales of electrolysis products were on a par Inorganic chemicals 112% 107% with the previous fiscal year. Revenues in
Slide 28: Sub-segment Year-on-Year Comparison of Net Sales (Polymer and Oligomer)
Sub-segment Year-on-Year Comparison of Net Sales (Polymer and Oligomer Business) Year-on-year Comparison Polymer and Oligomer Reason for the Change Business 2Q 1Q-2Q (Cumulative Total) Decrease in sales volume for the automobile Polymers 99% 95% industry Shipments of products for ink applications an
Slide 29: Sub-segment Year-on-Year Comparison of Net Sales (Adhesive Materials)
Sub-segment Year-on-Year Comparison of Net Sales (Adhesive Materials Business) Year-on-year Comparison Adhesive Materials Reason for the Change Business 2Q 1Q-2Q (Cumulative Total) Revenues decreased in Japan due to a reduction in stay-at-home demand. Revenues Instant glue 107% 104% were on a par wi
Slide 30: Sub-segment Year-on-Year Comparison of Net Sales (Performance Chemicals)
Sub-segment Year-on-Year Comparison of Net Sales (Performance Chemicals Business) Year-on-year Comparison Performance Reason for the Change Chemicals Business 2Q 1Q-2Q (Cumulative Total) Shipments were on a par with the previous Inorganic functional year. materials 96% 101% Shipments for semiconduct
Slide 31: Sub-segment Year-on-Year Comparison of Net Sales (Plastics)
Sub-segment Year-on-Year Comparison of Net Sales (Plastics Business) Year-on-year Comparison Plastics Business Reason for the Change 2Q 1Q-2Q (Cumulative Total) There were price revisions due to an increase Piping equipment 107% 113% in raw fuel prices. Shipments were on a par with the previous Nurs