Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q2 2022 Earnings Presentation
53 slides from Sekisui Chemical's earnings presentation, Oct 27, 2022
Slide 1: Presentation of Financial Results: Progress under Management Plan
SEKISUI CHEMICAL CO., LTD. For 2Q FY2022, ending March 31, 2023 Presentation of Financial Results Progress under Management Plan Keita Kato President and CEO October 27, 2022
Slide 2: Results for 1H FY2022
Results for 1H FY2022 FY2022 Forex Rate 1H FY2021 1H FY2022 Initial Plan Assumptions ¥126/US$ ¥115/US$ - ¥136/€ ¥131/€ Results ¥110/US$ ¥134/US$ (Avg. rate for - each term) ¥131/€ ¥139/€ 1
Slide 3: Overview of 1H FY2022 Results
Overview of 1H FY2022 Results ▌ Substantial increases in Groupwide sales and profit; results at each level of profit exceed forecasts (July) ▌ Substantial increase in ordinary profit owing to the effects of a foreign exchange gain ▌ Substantial improvement in the bottom line compared with the previo
Slide 4: 1H FY2022 Results by Segment
1H FY2022 Results by Segment ▌ Despite the substantial impact of a further surge in fuel and raw material prices and fluctuations in demand owing to such factors as the prolonged effects of COVID-19 and the actions taken by Russia in Ukraine, significant increases in profit in the HPP and UIEP compa
Slide 5: 1Q & 2Q FY2022 Results by Segment
1Q & 2Q FY2022 Results by Segment ▌ Continued increases in both Groupwide sales and profit also in the 2Q 1Q FY2021 1Q FY2022 2Q FY2021 2Q FY2022 Net Operating Net Operating Net Operating Net Operating (Billions of yen) sales profit sales profit sales profit sales profit HPP 83.9 10.4 100.4 10.9 86.
Slide 6: 1H FY2022 Results Analysis
1H FY2022 Results Analysis ▌ Minimized the impact of surges in fuel and raw material prices through steady improvements in selling prices; substantial increases in both sales and profit owing to increases in sales volume and improvements in the product mix focusing mainly on high- performance produc
Slide 7: Optimization of the Business Portfolio
Optimization of the Business Portfolio 1. Optimize the Business Portfolio 2. Reorganize the Three Strategic Fields of the HPP Company 3. Reorganize the Three Strategic Fields of the UIEP Company 6
Slide 8: Optimization of the Business Portfolio in Pursuit of Greater Synergies
Optimization of the Business Portfolio in Pursuit of Greater Synergies ▌ <Background> As individual businesses have expanded their domains, some business activities have approached one another between the HPP and UIEP companies ▌ <Objective> Pursue synergies in marketing, manufacturing, technology,
Slide 9: Reorganize the Three Strategic Fields of the HPP Company
HPP Optimization of the Business Portfolio in Pursuit of Greater Synergies (2) Company ▌ Reorganize the Three Strategic Fields of the HPP Company (* including the rearrangement of certain products within the company) Electronics • Sales (FY2022 Plan): ¥69.8 billion Electronics • Sales (FY2022 Revise
Slide 10: Reorganize the Three Strategic Fields of the UIEP Company
UIEP Optimization of the Business Portfolio in Pursuit of Greater Synergies (3) Company ▌ Reorganize the Three Strategic Fields of the UIEP Company (* including the rearrangement of certain products within the company) Piping and Infrastructure Pipe Systems • Sales (FY2022 Revised Plan): ¥116.2 bill
Slide 11: FY2022 Revised Annual and 2H Plans
FY2022 Revised Annual and 2H Plans 2H FY2022 FY2022 Forex Rate 2H FY2021 Revised Plan Initial Plan * Figures in the following slides are based on the former business segment structure prior to reorganization aimed Assumptions ¥135/US$ ¥115/US$ - ¥137/€ ¥131/€ at business portfolio optimization. Resu
Slide 12: Outlook for Market Conditions
Outlook for Market Conditions ▌ The number of automobiles manufactured and smartphone demand below forecasts (July) in the 1H; smartphone demand projected to bottom out in the 2Q and then exhibit a certain degree of recovery; despite the surge in raw material prices peaking out, 2H assumptions expec
Slide 13: 2H FY2022 Revised Plan by Segment
2H FY2022 Revised Plan by Segment ▌ Despite projecting a harsh business environment owing to such factors the surge in fuel and raw material prices in excess of initial expectations (April), looking to secure margins on an ongoing basis by improving selling prices; projecting increases in Groupwide
Slide 14: 2H FY2022 Revised Plan Analysis
2H FY2022 Revised Plan Analysis ▌ Improvements in selling prices to essentially offset the surge in fuel and raw material prices, which exceeded initial expectations (April); projecting a certain degree of recovery in market conditions and substantial increases in sales volumes and improvements in t
Slide 15: FY2022 Revised Plan by Segment
FY2022 Revised Plan by Segment ▌ Anticipating substantial increases in both Groupwide sales and profit as well as an increase in profit in each segment; projected to achieve operating profit of ¥100 billion in line with initial expectations (April) and forecasts (July) FY2022 FY2022 FY2021 Differenc
Slide 16: Reference: FY2022 Revised Plan by Segment (After Portfolio Reorganization)
<Reference> FY2022 Revised Plan by Segment (After Portfolio Reorganization) ▌ Post business portfolio optimization quantitative data (reference) ▌ Work to maximize synergy creation over the next medium term FY2022 FY2022 FY2021 Difference Difference Revised Plan Forecasts (Apr.) Net Operating Net Op
Slide 17: Overview of FY2022 Revised Plan and Returns to Shareholders
Overview of FY2022 Revised Plan and Returns to Shareholders ▌ Substantial increases in sales and at each level of profit; projecting record high profit; upward revision in sales ▌ Upward revisions in both ordinary profit and the bottom line owing mainly to foreign exchange gains ▌ Annual dividend pe
Slide 18: Progress under the Medium-term Management Plan, Drive 2022
Progress under the Medium-term Management Plan, Drive 2022 ▌ Ongoing efforts to strengthen the Company’s business structure (earning power); shift to growth toward the next Medium-term Plan Operating Profit FY2009-2013 FY2014-2016 FY2017-2019 FY2020-2022 Performance GS21-SHINKA! SHINKA!-Advance 2016
Slide 19: High Performance Plastics Company
High Performance Plastics Company Ikusuke Shimizu Company President 18
Slide 20: HPP: Overview of FY2022 1H Results and 2H Revised Plan
HPP Overview of FY2022 1H Results and 2H Revised Plan Company ▌ Despite a harsh business environment owing to the surge in fuel and raw material prices, decrease in automobile production, and adjustments to smartphone inventories, substantial increases in sales and profit owing to improvements in se
Slide 21: HPP: 1H FY2022 Results Analysis
HPP 1H FY2022 Results Analysis Company ▌ Despite a greater-than-expected harsh business environment (decrease in automobile production and adjustments to smartphone inventories), achieved substantial increases in both sales and profit on the back of thoroughgoing efforts to secure margins through im
Slide 22: HPP: 2H FY2022 Revised Plan Analysis
HPP 2H FY2022 Revised Plan Analysis Company ▌ Despite the surge in fuel and raw material prices substantially exceeding initial expectations (April), both sales and profit expected to further increase owing to continuous thoroughgoing efforts to improve selling prices, increases in sales volumes and
Slide 23: HPP: Three Strategic Fields and Cost Innovation
HPP Three Strategic Fields and Cost Innovation Company ▌ Sales for the fiscal year projected to increase in each of the three strategic fields due partly to the impact of foreign currency exchange rate fluctuations; cost innovation forecast to exceed plans (April) Net Sales Trends and Progress Mobil
Slide 24: HPP: Growth Engines
HPP Growth Engines Company ▌ Strengthen the rollout of measures aimed at sustainable growth in each of the three strategic fields; focus on preparation in a bid to realize the next medium-term plan Progress of Growth Measures in the Three Fields Mobility～ High-performance interlayer film sales growt
Slide 25: Housing Company
Housing Company Toshiyuki Kamiyoshi Company President 24
Slide 26: Housing: Overview of FY2022 1H Results and 2H Revised Plan
Housing Overview of FY2022 1H Results and 2H Revised Plan Company ▌ Despite the substantial impact of a surge in components costs, operating profit was on par with the previous year due to increases in the number of new houses sold and unit prices in the 1H ▌ Despite the ongoing impact of a surge in
Slide 27: Housing: 1H FY2022 Results Analysis
Housing 1H FY2022 Results Analysis Company ▌ Despite the substantial impact of the further spread of COVID-19 and soaring component costs, sales increased due to an increase in number of new houses sold and a steady rise in unit prices; operating profit was on par with the previous year • Housing: D
Slide 28: Housing: 2H FY2022 Revised Plan Analysis
Housing 2H FY2022 Revised Plan Analysis Company ▌ Work toward capturing orders and increasing the number of new houses sold by strengthening the subdivision and ready-built housing as well as renovation businesses and plan for an increase in sales; despite the increased impact of soaring component c
Slide 29: Housing: New Housing Orders
Housing New Housing Orders Company ▌ Projecting a modest improvement in market conditions in the 2H despite fewer visitors and negotiation delays due to COVID-19; work to secure orders by strengthening Smart House products and resilience promotion, including subdivision houses Visitors and Orders by
Slide 30: Housing: Stock Business and Town and Community Development
Stock Business (Renovation, Real Estate), Housing Town and Community Development Company ▌ Despite the impact of COVID-19, steady recovery in the Renovations business; accelerating efforts to expand BeHeim purchase and resale; firm progress also in the Town and Community Development Business; workin
Slide 31: Urban Infrastructure & Environmental Products Company
Urban Infrastructure & Environmental Products Company Yoshiyuki Hirai Company President 30
Slide 32: UIEP: Overview of FY2022 1H Results and 2H Revised Plan
UIEP Overview of FY2022 1H Results and 2H Revised Plan Company ▌ Despite the surge in fuel and raw material prices, increases in both sales and profit through successful efforts to secure margins based on thoroughgoing steps to improve selling prices and the backdrop of firm demand in the 1H ▌ Proje
Slide 33: UIEP: 1H FY2022 Results Analysis
UIEP 1H FY2022 Results Analysis Company ▌ Increases in both sales and profit on the back of efforts to secure margins through the thoroughgoing improvement of selling prices as well as increases in sales volumes and improvements in the product mix in response to surges in fuel and raw material price
Slide 34: UIEP: 2H FY2022 Revised Plan Analysis
UIEP 2H FY2022 Revised Plan Analysis Company ▌ Projecting a modest improvement in market conditions; work toward profit growth through increases in sales volumes and improvements in the product mix and thoroughgoing steps to secure margins in response to the surge in fuel and raw materials prices th
Slide 35: UIEP: Three Strategic Fields and Structural Reforms
UIEP Three Strategic Fields and Structural Reforms Company ▌ Full fiscal year sales projected to increase due to the effects of improvements in selling prices in each of the three strategic fields Net sales in the Three Strategic Fields Advanced Materials Piping and Infrastructure • Sheets: Projecti
Slide 36: UIEP: Growth Strategy (Prioritized Products, Overseas)
UIEP Growth Strategy (Prioritized Products, Overseas) Company Expansion of Prioritized Products Product Examples Strengthen the appeal for SDG contributions, utilize Piping and Piping and Piping and Building and Living the Chiba Solution Center Infrastructure Infrastructure Infrastructure Environm
Slide 37: Medical Business
Medical Business Futoshi Kamiwaki Director, Senior Managing Executive Officer Head of Business Strategy Department 36
Slide 38: Medical: Overview of FY2022 1H Results and 2H Revised Plan
Medical Overview of FY2022 1H Results and 2H Revised Plan Business ▌ Despite the impact of lockdowns in China, increases in both sales and profit on the back of a certain degree of in diagnostics demand in Japan and overseas and contributions to profits from new pharmaceutical ingredients; record-hi
Slide 39: Medical: 1H FY2022 Results Analysis
Medical 1H FY2022 Results Analysis Business ▌ Despite not achieving the operating profit forecast (July) mainly due to the impact of lockdowns in China, secured an increase in profit; record-high profit in the 1H ▌ Sold shares of XenoTech (September) Net Sales (Billions of yen) Analysis of Operating
Slide 40: Medical: 2H FY2022 Revised Plan Analysis
Medical 2H FY2022 Revised Plan Analysis Business ▌ Diagnostics Business expansion in Japan and overseas, reduced fixed costs and the effects of foreign exchange gains to offset delays in authorizing COVID-19 diagnostic kits (new product) in the U.S. Net Sales (Billions of yen) Analysis of Operating
Slide 41: Medical: Overview by Business
Medical Overview by Business Business ▌ Ongoing firm outpatient test demand both in Japan and overseas; Pharmaceutical Sciences Business progressing essentially in line with plans ▌ Focus on increasing sales of new pharmaceutical ingredients and new products (COVID- 19 - FLU/RSV antigen diagnostics
Slide 42: Financial Results 2Q FY2022
Financial Results 2Q FY2022 41
Slide 43: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2022 Sep. 30, 2022 Difference Consolidated Increased: 0 Subsidiaries subsidiaries 155 152 Decreased: 3 Subsidiaries*1 Affiliates Increased: 0 Subsidiaries (Equity Method) 8 8 Decreased: 0 Subsidiaries *1 Sekisui Polymatech (Shanghai) T
Slide 44: Summary of Profit and Loss
Summary of Profit and Loss (Billions of yen) 1H FY2021 1H FY2022 Difference Net sales 547.9 607.8 +59.8 Gross profit 169.9 182.8 +12.9 Gross profit margin 31.0% 30.1% -0.9% Selling, general and administrative expenses 134.4 142.5 +8.0 Operating profit 35.5 40.3 +4.8 Share of profit of entities accou
Slide 45: Balance Sheets (Assets)
Balance Sheets (Assets) Sep.30 Inventories (B/S item) 2022 Difference Ready-built housing (products) 29.2 +3.4 Prepared land for subdivision Mar. 31, 2022 Sep. 30, 2022 Difference housing 56.7 +1.3 (Billions of yen) Land under preparation (work in process) 10.3 -0.2 Cash and deposits 144.5 131.7 -12
Slide 46: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (Billions of yen) Mar. 31, 2022 Sep. 30, 2022 Difference Non-interest-bearing liabilities 373.6 376.7 +3.1 Net profit +39.1 Interest-bearing liabilities 122.6 123.4 +0.8 Dividends paid (Net interest-bearing liabilities) (-22.0) (-8.3) (+13.6) -11.1 Total lia
Slide 47: Consolidated Cash Flows
Consolidated Cash Flows (Billions of yen) 1H FY2021 1H FY2022 Cash flows from operating activities 56.2 35.4 Cash flows from investing activities 20.7 -22.9 Cash flows from financing activities -25.7 -31.9 Net increase in cash and cash equivalents 50.9 -15.4 Cash and cash equivalents at end of perio
Slide 48: Depreciation, Amortization, Capital Expenditures and EBITDA
Depreciation, Amortization, Capital Expenditures and EBITDA Goodwill and other Depreciation*1 Capital expenditures EBITDA*3 amortization*2 1H 1H Differ- 1H 1H Differ- 1H 1H Differ- 1H 1H Differ- FY2021 FY2022 ence FY2021 FY2022 ence FY2021 FY2022 ence FY2021 FY2022 ence (Billions of yen) Housing 4.8
Slide 49: Depreciation, Amortization, Capital Expenditures, R&D Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure FY2022 FY2021 Difference (Billions of yen) Revised Plan Depreciation 44.3 47.5 +3.2 Goodwill and other amortization 4.4 2.5 -1.9 Capital expenditures 52.5 65.0 +12.5 EBITDA 137.6 150.0 +12.4 Research and developme
Slide 50: Forward-looking statements
This slide presentation contains forward-looking statements. The forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements d
Slide 51: Housing Company Results and Plan
Housing Company Results and Plan * Including Tochigi Sekisuiheim Inc. scheduled for inclusion in the scope of consolidation in December 1. Main data in Housing business 5ｚｚｚｚｚｚｚｚｚｚｚｚｚ FY2022 FY2021 Full Year 1H 2H Plan 1H 2H Full Year Plan Net sales (Billions of yen) 260.2 287.8* 548.0* 249.8 265.4
Slide 52: Housing Company Results and Plan: Orders and Starts
Housing Company Results and Plan 2. Housing orders FY2022 FY2021 FY2020 2H Full Year (Millions of yen) 1H 1H 2H Full Year 1H 2H Full Year Plan Plan Year-start Backlog 185,000 186,900 - 184,800 192,500 - 205,400 194,500 - New construction ・Renovation Growth Rate ±0% -3% - -10% -1% - -6% -11% - New Or
Slide 53: SEKISUI
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