Shikoku Kasei Holdings Corporation · TSE:4099
Shikoku Kasei — Shikoku Chemicals — Q2 FY2022 Earnings Presentation
68 slides from Shikoku Kasei's earnings presentation, Oct 27, 2021
Slide 1: Financial Results Presentation for the 2nd Quarter of FY 2022
Financial Results Presentation for the 2nd Quarter of FY 2022 October 27, 2021 Code number：4099
Slide 2: Contents
Contents Ⅰ. Financial Results for the 2nd Quarter of FY 2022 ・・ P3 Ⅱ. Forecast of Financial Results for FY 2022 ・・・・・・ P13 Ⅲ. Long-term Vision Challenge 1000 “STAGE 1” Progress Status ・・・・・・・・・・・・・・・・・・・・・・ P16 Ⅳ. New Organizational Structure ・・・・・・・・・・・・・・・・・ P27 Ⅴ. References ・・・・・・・・・・・・・・・・・・・・・
Slide 3: Financial Results for the 2nd Quarter of FY 2022
Ⅰ．Financial Results for the 2nd Quarter of FY 2022
Slide 4: Overview
Ⅰ－１．Overview Year-on-year net sales increased by 7.9%, while profits increased by 52.9%. In addition, when compared with periods before the novel 1 coronavirus disease (COVID-19) pandemic, net sales recorded the second-highest number following that at the corresponding period of the year before last
Slide 5: Consolidated Financial Results
Ⅰ－２．Consolidated Financial Results ■ Highlights of Financial Results for the Q2 of FY 2022 (Millions of yen) Consolidated Cumulative Q2 Increase FY2021 FY2022 Changes of Amount Amount Percentage Amount Percentage Net Sales 23,408 100.0% 25,266 100.0% 1,858 7.9% Operating Income 2,609 11.1% 3,795 15.
Slide 6: Sales and Profit by Business Segments
Ⅰ－３．Sales and Profit by Business segments(consolidated) （Millions of yen） Consolidate Cumulative Q2 Net Sales FY2021 Percentage FY2022 Percentage Changes Inorganic Chemicals 4,669 19.9% 5,877 23.3% 25.9% Chemicals Organic Chemicals 5,744 24.5% 5,991 23.7% 4.3% Operations Fine Chemicals 3,882 16.6% 4
Slide 7: Overview of Sales by Segment (Chemical Products)
Ⅰ－４．Overview of Sales by Segment (Chemical Products) 8,000 2020/9 (Millions of yen) 5,877 5,991 5,744 （4.3％） 2021/9 6,000 （25.9％） 4,538 4,669 （16.9％） 4,000 3,882 2,000 0 ①Inorganic 無機化成品 Chemicals ②Organic 有機化成品Chemicals ③Fine Chemicals ファインケミカル ①Sales of insoluble sulfur, a material for radial tire
Slide 8: Overview of Sales by Segment (Housing Material Products)
Ⅰ－５．Overview of Sales by Segment (Housing Material Products) (Millions of yen) 10,000 10,000 8,001 7,527 8,000 8,000 （▲5.9％） 6,000 6,000 4,000 4,000 2,000 2,000 672 710 （▲5.3％） 0 0 Interior, Exterior 壁材 Finishes エクステリア Exterior Products and Paving Materials ◆ Although the number of new housing start
Slide 9: Analysis of Increase/Decrease in Chemical Segment Profit
Operating profit in previous term Increase in sales price Increase in sales volume Decrease in cost costs +465 of sales price of fixed Decline in unit Increase in cost of logistics Inorganic Chemicals Other Increase in sales price Decrease in sales volume Increase in cost of sales Increase in cost o
Slide 10: Analysis of Increase/Decrease in Housing Material Segment Profit
Ⅰ－７．Analysis of Increase/Decrease in Housing Material Segment Profit 2,400 Increase in （Millions of yen） unit price of 2,200 raw materials ▲543 2,000 237 1,800 750 1,600 1,337 766 1,400 5 9 3 15 12 1,200 1,058 1,000 120 91 800 600 400 200 0 前 販 販 売 物 そ 販 販 売 物 そ 当 Decrease in sales Decrease in sales
Slide 11: Consolidated Balance Sheets
Ⅰ－８．Consolidated Balance Sheets (Millions of yen) Increase of 2021/3 2021/9 amount Cash and deposits（▲1,230）、 Current assets 65,024 61,981 ▲ 3,043 Notes and accounts receivable – trade （▲1,254） Machinery, equipment and Non-current assets 42,319 43,816 1,497 vehicles, net（+987） Total assets 107,344 1
Slide 12: Consolidated Statements of Cash Flows
Ⅰ－９．Consolidated Statements of Cash Flows (Millions of yen) 2020/9 2021/9 Net cash provided by (used in) operating activities 3,093 2,275 Net cash provided by (used in) investing activities (1,043) (626) Net cash provided by (used in) financing activities (2,289) (1,928) Net increase (decrease) in c
Slide 13: Forecast of Financial Results for FY 2022
Ⅱ．Forecast of Financial Results for FY 2022
Slide 14: The Full-Year Financial Results Forecast (Consolidated)
Ⅱ－１. The Full-Year Financial Results Forecast (Consolidated) (Millions of yen) Progress rate to full-year result Progress rate to full-year forecast 60,000 100.0% Net sales 100.0% Operating progress income 100.0% Net sales ratio 100.0% progress 50,000 ratio 74.0% 72.6% 40,000 70.9% 66.0% 49.8% 47.2%
Slide 15: Capital Investment, Depreciation, R&D Expense
Ⅱ－２. Capital investment, Depreciation, R&D Expense(Consolidated) Of which, production （百万円） (Millions of yen) plant related (TAP-4, 7,000 NEO2022) was 3,055 million yen 6,000 5,000 4,000 設備投資額 Capital Investment 3,000 減価償却費 Depreciation 研究開発費 R&D Expenses 2,000 1,000 0 2017/3 FY2017 2018/3 FY2018 20
Slide 16: Long-Term Vision Challenge 1000 STAGE 1 Progress Status
Ⅲ．Long-Term Vision Challenge 1000 “STAGE 1” Progress Status
Slide 17: Outline of Challenge 1000 ①
Ⅲ－１．Outline of Challenge 1000 ① present FY 2021 2023 2026 2030 長期ビジョン Long-Term Challenge Vision 10001000 Challenge STAGE STAGE 1 1 STAGE STAGE ２ STAGE STAGE ３ Develop up a long-term vision, address future themes, and aim to achieve results 17
Slide 18: Outline of Challenge 1000 ②
Ⅲ－２．Outline of Challenge 1000 ② Financial Pillars for Yonpou Yoshi (Contributions to Goals Strategy Stakeholders) Net Sales 売上高 Business Reform Customer 100 billions of Policy 1,000億円 yen Companywide Employee Reform Policy 営業利益 Operating Income 150億円 15 billions of yen Proactive Shareholder Investme
Slide 19: Financial Goals
Ⅲ－３．Financial goals 120.0 40.0% Implementing various measures in line with the strategic pillars （ Billions of yen ） to achieve the goals set at each STAGE Net sales 100.0 35.0% 100.0 （Consolidated） 5.0 New 95.0 business 30.0% 80.0 sales 80.0 2.5 Existing 25.0% 77.5 business sales 60.0 60.0 20.0% 52
Slide 20: Progress Summary (FY2021-FY2022 Q2)
Ⅲ－４．Progress Summary (FY2021-FY2022 Q2) ◆ Recovery despite the impact of COVID-19 Financial ・ FY2021 is expected to be at par with FY2019 as a result of the recovery phase from COVID-19. Targets Although the progress of sales is currently lagging, operating profit and operating profit margin are exp
Slide 21: Progress on Business Reform Policy
Ⅲ－５．Progress on Business Reform Policy Next FY2023 is the final year of "STAGE 1". We will achieve our goals and aim for further growth in "STAGE 2". Business Name Topic STAGE 1 Target Inorganic Chemicals • Continue efforts to improve the quality of insoluble Consolidated sales of 14 sulfur billion
Slide 22: Progress on Companywide Reform Policy
Ⅲ－６．Progress on Companywide Reform Policy We are working to build a foundation that can accommodate diverse work styles, fostering a sense of self- improvement, and creating a framework for change, and we are generally making progress as planned. Item Topic Creation of values ◆ Enhance brand value (
Slide 23: Pillar for Strategy (Companywide Reform Policy)
Ⅲ－７．Pillar for Strategy （Companywide Reform Policy） Semiconductor Process Materials ◆Fine Chemicals starting the operation of multipurpose plant The demand for semiconductors has been increasing because of IoT and autonomous cars. Needs for high-quality, high-function materials are growing among man
Slide 24: Pillar for Strategy (Achievement of SDGs)
Ⅲ－８．Pillar for Strategy （Achievement of SDGs） ◆ Creation and publication of SDGs Handbook on the website In the SDGs Handbook, we have introduced goals related to each of our businesses and the social issues that we are contributing towards. 24
Slide 25: Pillar for Strategy (Achievement of SDGs)
Ⅲ－９．Pillar for Strategy （Achievement of SDGs） Chemical operations • Organic Chemicals contributes to the supply of safe water to people and conservation of marine environment. =>Providing a good hygienic environment for people around the world through the disinfection, cleaning, and bleaching techno
Slide 26: Shareholders Return - Transitions in Dividend Payouts
Ⅲ－１０．Shareholders Return–Transitions in Dividend Payouts– （百万円） （％） 3,500 60.0 56.6 自己株式取得額 Share Repurchases 51.1 3,000 50.0 配当総額 Total Dividends 2,500 連結総還元性向（％） Total Payout Ratio（％） 1,786 40.0 1,605 2,000 1,290 30.0 23.8 1,500 19.5 20.0 1,000 500 10.0 1,285 1,285 1,389 1,338 1,311 0 0.0 2018/3 F
Slide 27: New Organizational Structure
IV. New Organizational Structure
Slide 28: Transition to a Holding Company Structure-1
Ⅳ－１．Transition to a Holding Company Structure-１ The company will begin to prepare for the transition to a holding company structure in January 2023. Objectives (1) Enhancement of the business operation structure Speed up decision-making by boldly transferring authority to each operating company (2)
Slide 29: Transition to a Holding Company Structure-2
Ⅳ－２．Transition to a Holding Company Structure-２ [Image of Group management structure after the transition] Pure Holding Company (Our Company) SHIKOKU CHEMICALS CORPORATION SHARED SERVICES (Successor company: newly established) SHIKOKU CHEMICALS SHIKOKU CHEMICALS CORPORATION CORPORATION HOUSING CHEMI
Slide 30: Transition to a Holding Company Structure-3
Ⅳ－３．Transition to a Holding Company Structure-３ ◆Schedule 2022 2023 Jan. Apr. June Jan. 1 Schedule for Establish a Approval of the Special resolution Succession of Transitioning to preparation absorption-type at the rights and Holding Company company for company split shareholders' obligations to th
Slide 31: Thank you for listening.
Thank you for listening.
Slide 32: References
V．References
Slide 33: Corporate Profile
Ⅴ－１．Corporate Profile （As of September 30, 2021） Company name SHIKOKU CHEMICALS CORPORATION Code number 4099 Industry：Chemicals Stock exchange Tokyo listing Incorporated October 10, 1947 Head office Marugame, Kagawa Prefecture President and C.E.O. Naoto Tanaka Capital 6,867 million yen
Slide 34: Business Structure
Ⅴ－２ ． Business Structure Two main business pillars, which are chemical products and housing materials. Inorganic Chemicals Chemicals Organic Operations Chemicals Fine SHIKOKU Chemicals CHEMICALS CORPORATION Interior, Exterior Finishes Housing and Materials Paving aterials Operations Exterior Produ
Slide 35: History
Ⅴ－３ ． History Established in Marugame, Kagawa Prefecture with a capital of 2 million yen as a producer of carbon disulfide (=> Oct 1947 inorganic chemical products) No. 1 Tokushima Plant (now Tokushima Plant’s Yoshinari location) was constructed and began operations in the Oct 1957 production of sod
Slide 36: History and Sales Trends
Ⅴ－４ ． History and Sales Trends Net Sales 1975 Moved to Tokyo Stock 1962 Exchange Section 1 Listed on Tokyo Stock Microetching solution 2008 Exchange Section 2 for PWBs 2004 Advanced Materials 1991 Glicoat-SMD 1947 1984 Insoluble Sulfur Establishment 1972 Exterior Products 1970 Wall Materials 1968 Im
Slide 37: Chemicals Operations
Chemicals Operations
Slide 38: Inorganic Chemicals
Chemicals Operations ①Inorganic Chemicals
Slide 39: Inorganic Chemicals
Ⅴ－５ ． Inorganic Chemicals [Major products] □ Carbon Disulfide …Essential materials for chemical fiber rayon □ Insoluble Sulfur …Rubber vulcanization agent (Millions of yen) □ Sodium Sulfate …Warm bath effect accelerator for Inorganic bath additives Chemicals Synthetic detergent cleaning aid 5,877(23
Slide 40: Insoluble Sulfur - Product Introduction
Ⅴ－６ ． Insoluble Sulfur-Product Introduction- □ Application: Vulcanizing agent for rubber □ Main customers: Domestic and overseas tire manufacturers □ The raw material rubber is hard, and it acquires the characteristic to extend and contract by adding sulfur and heating (vulcanizing). □ When normal s
Slide 41: Organic Chemicals
Chemical Operations ②Organic Chemicals
Slide 42: Organic Chemicals
Ⅴ－７ ． Organic Chemicals (Millions of yen) [Major products] □ Chlorianted Isocyanurates（NEO-CHLOR） FY2022 … for swimming pool and septic tank Consolidated disinfectants Cumulative Q2 □ HIPOLKA … Wastewater/sludge treatment Net Sales agent 25,266 Organic Chemicals 5,991(23.7%) 42
Slide 43: Chlorinated Isocyanurates - Product Introduction
Ⅴ－８. Chlorinated Isocyanurates-Product Introduction- □ Applications: Sanitizing agent for swimming pools and septic tanks, chlorine-based sanitizing agent for spas and home baths □ Main customers: Swimming pool operators, schools, general consumers (U.S.) □ Main component: Chlorinated Isocyanurates
Slide 44: Fine Chemicals
Chemical Operations ③Fine Chemicals
Slide 45: Fine Chemicals
Ⅴ－９. Fine Chemicals (Millions of yen) FY2022 Consolidated Cumulative Q2 Net Sales 25,266 [Major products] Fine Chemicals □ Glicoat-SMD… Water-soluble rust preventive agent for 4,538(18.0%) printed wiring boards (OSP) □ Advanced & Specialty Chemicals… Imidazoles (curing agent of epoxy resin) Resin mo
Slide 46: OSP: Organic Solderability Preservative - Product Introduction
Ⅴ－１０. OSP: Organic Solderability Preservative-Product Introduction- □ Application: Water-soluble rust preventive agent for printed wiring boards OSP: Organic Solderability Preservative] □ Main customers: Printed wiring board manufacturers all over the world □ By forming an organic coating on the cop
Slide 47: Advanced & Specialty Chemicals - Imidazoles
Ⅴ－１１. Advanced & Specialty Chemicals-Imidazoles □ Application: Curing agent and curing accelerator for epoxy resin*, raw material for drugs □ Main customers: Resin material manufacturers and drug manufacturers □ Imidazole is used in a wide range of applications, including curing agent for epoxy resi
Slide 48: Advanced & Specialty Chemicals - Imidazoles
Ⅴ－１２. Advanced & Specialty Chemicals-Imidazoles Engine CPU Car navigation system [Laminated plate, sealing agent, [Liquid crystal sealing material] solder resist ink] Engine hood [CFRP (reinforced carbon fiber)] Frame structure [Adhesive for structures] Tires [Tire grip improving agent] Electric mot
Slide 49: Focused Products (Printed Wiring Boards Agents)
Ⅴ－１３. Focused Products (Printed Wiring Boards Agents) GliCAP® Adhesion improving agent between copper circuit and resin on printed wiring boards. Conventionally, unevenness was formed on surface by roughening (etching) the copper so that the adhesion to resin was improved by “mechanical bondin
Slide 50: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１４. Focused Products (Advanced & Specialty Chemicals) Advanced materials Advanced materials at our company refer to the products (compounds) that can improve various functions by blending them as materials for electronic parts such as semiconductors that are used in electronic devices, etc.
Slide 51: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１５. Focused Products (Advanced & Specialty Chemicals) A new isocyanuric acid derivatives We developed this material by utilizing isocyanuric acid synthesis technology we have accumulated. It has excellent heat resistance, light resistance, and transparency, and is used as a modifier for seal
Slide 52: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１６. Focused Products (Advanced & Specialty Chemicals) Glycoluril derivatives A multi-functional resin modifier with transparency and high heat resistance. It has 4 functional groups and is expected to form hardened materials with a high crosslinking density. Thiol group Products having a t
Slide 53: Housing Materials Operations
Housing Materials Operations
Slide 54: Interior, Exterior Finishes and Paving Materials
Housing Materials Operations ④Interior, Exterior Finishes and Paving Materials
Slide 55: Interior, Exterior Finishes and Paving Materials
Ⅴ－１７. Interior, Exterior Finishes and Paving Materials [Major products] (Millions of yen) □ Interior materials (silicate walls, natural material walls) Plastered wall materials with moisture control function and harmful FY2022 chemical substance and daily odor Consolidated adsorption/decomposition f
Slide 56: Interior, Exterior Finishes and Paving Materials
Ⅴ－１８. Interior, Exterior Finishes and Paving Materials Interior materials The business started with "JULUX," the first industrial product for plastered wall material in Japan, which was developed for in-house chemical glue CMC application. It is difficult to handle Juraku wall, traditional Jap
Slide 57: Interior, Exterior Finishes and Paving Materials
Ⅴ－１９. Interior, Exterior Finishes and Paving Materials Exterior and paving materials We also expand our business to “exterior” to cover the outside of buildings and exterior parts, and “paving” to cover the surfaces of roads and approaches. Our exterior materials come in wide variations includ
Slide 58: Exterior Products
Housing Materials operations ⑤Exterior Products
Slide 59: Exterior Products
Ⅴ－２０. Exterior Products (Millions of yen) [Major products] Home Exterior Products □ Gates, fences, car ports, and decks Exterior □ Accordion gates First product Products (expansion type gates) in industry 7,527(29.8％) which was FY2022 □ Art Wall developed by Consolidated (aluminum system fence) Cumu
Slide 60: Home Exterior Products
Ⅴ－２１. Home Exterior Products In 1971, when the motorization was rapidly progressing, we devised an “accordion gate,” which can be easily opened and closed with an expansion mechanism, and which can respond to the residential situation with limited space in Japan, and it became the standard for gat
Slide 61: Decorative Exterior Products
Ⅴ－２２. Decorative Exterior Products ■ Pathway shelter ■ Bicycle parking space ■ High strength car stops ■ Garbage accumulation storage ） 61
Slide 62: Efforts in Housing Materials Business
Ⅴ－２３．Efforts in Housing Materials Business We are adding to the lineup of high-strength exterior products that are resistant to wind and snow and promoting sales expansion, based on the fact that large-scale disasters such as typhoons have been recently happening one after another over the country
Slide 63: Long-Term Vision
Long-Term Vision
Slide 64: Business Reform Policy (Chemicals Operations)
Ⅴ－２４. Business Reform Policy Chemicals Continue to develop and advance for the sake of the world Operations Desired State Strategic Scenario Make use of materials Accumulate sulfur handling and synthesis Inorganic which are difficult to handle in a recycling- reaction evaluation technologies oriente
Slide 65: Business Reform Policy (Housing Materials Operations)
Ⅴ－２５. Business Reform Policy Housing Design a new lifestyle in the future and contribute Materials to the community development around the world for everyone’s happiness Operations Desired state Process to provide value Attract and acquire human resources Design a new lifestyle in the future and eng
Slide 66: Companywide Reform Policy
Ⅴ－２６. Companywide Reform Policy Set six companywide reform policies toward realization of the desired state in 2030 and push forward with them mobilizing group-wide efforts Desired state Toward “one- step-ahead, proposal” company with Dokusouryoku in 2030 (creativity) Solve social issues with crea
Slide 67: Yonpou Yoshi - Contributions to Stakeholders
Ⅴ－２７. Yonpou Yoshi – Contributions to Stakeholders – Customers “One-step-ahead” values We will provide new values with our unique, state-of- the-art products and services. Employees Community Challenges and growth A better tomorrow We will support a fulfilling We will contribute to the life with a s
Slide 68: Contact Information
Contact Information Corporate Planning Department, SHIKOKU CHEMICALS CORPORATION TEL：+81-(0)877-21-4119 FAX：+81-(0)877-22-0411 www.shikoku.co.jp [Note regarding this document] Forward-looking statements or projections mentioned in this document, including earnings are based on currently available in