Shikoku Kasei Holdings Corporation · TSE:4099
Shikoku Kasei — Shikoku Chemicals — FY2022/3 Earnings Presentation
72 slides from Shikoku Kasei's earnings presentation, May 10, 2022
Slide 1: Financial Results Presentation for the FY 2022/3
Financial Results Presentation for the FY 2022/3 May 10, 2022 Code number：4099
Slide 2: Contents
Contents 0. Our Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P3 I . Financial Results for the FY 2022/3 ・・・・・・・・・・・・・・・・ P4 II. Forecast of Financial Results for the FY 2022/12・・・・・・ P11 III. Long-term Vision Challenge 1000 ・・・・・・・・・・・・・・・・・・ P15 “STAGE 1” Progress Status IV. New Organizational Stru
Slide 3: Our Business
0. Our Business Inorganic Chemicals Raw materials for Chemicals Interior, Housing Materials tires, etc. Exterior Finishes and Paving Materials Interiors Organic Chemicals For swimming pool and septic tank disinfectants Exterior Products Fine Exterior Products (carports, gates, etc.) Chemicals Chemic
Slide 4: Financial Results for the FY2022/3
Ⅰ．Financial Results for the FY2022/3
Slide 5: Consolidated Financial Results: Highlights for FY2022/3
Ⅰ－ １． Consolidated Financial Results ■ Highlights of Financial Results for the FY2022/3 (Millions of yen) FY2021/3 FY2022/3 Increase of Changes Amount Percentage Amount Percentage amount Net sales 49,590 100.0% 54,137 100.0% 4,547 9.2% N Operating profit 7,401 14.9% 8,400 15.5% 999 13.5% O Ordinary
Slide 6: Sales and Profit by Business Segments
Ⅰ－ 2．Sales and Profit by Business segments(consolidated) （Millions of yen） Net Sales FY2021/3 Percentage FY2022/3 Percentage Changes Inorganic Chemicals 10,435 21.0% 12,192 22.5% 16.8% Chemicals Organic Chemicals 10,709 21.6% 13,023 24.1% 21.6% Operations Fine Chemicals 8,705 17.6% 9,778 18.1% 12.3%
Slide 7: Overview of Sales by Segment (Chemicals Products)
Ⅰ－3．Overview of Sales by Segment (Chemicals Products) 16,000 13,023 14,000 12,192 (Millions of yen) （21.6％） 8,000 （16.8％） 12,000 10,709 2020/9 10,435 9,778 2021/3 5,877 5,991 10,000 5,744 （12.3％） （25.9％） （4.3％） 8,705 2021/9 2022/3 6,000 8,000 4,538 4,669 （16.9％） 6,000 4,000 3,882 4,000 2,000 2,000 0
Slide 8: Overview of Sales by Segment (Housing Materials Products)
Ⅰ－４．Overview of Sales by Segment (Housing Materials Products) (Millions of yen) 20,000 20,000 17,285 16,565 2021/3 18,000 18,000 （▲4.2％） 16,000 16,000 2022/3 14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 1,395 2,000 1,475 （▲5.4％） 2,000 0 0 壁材Finishes Interior, Exterio
Slide 9: Analysis of Increase/Decrease in Chemicals Segment Profit
Ⅰ－５．Analysis of Increase/Decrease in Chemicals Segment Profit 手作業なので注意！ (百万円) (Millions of yen) 9,000 42 8,000 2,204 610 ・Lower fixed cost per unit due to increased 157 20 230 7,545 production of 627 502 insoluble sulfur 7,000 164 262 ・Increase in 244 demand related 564 235 to electronic 23 6,000 51
Slide 10: Analysis of Increase/Decrease in Housing Materials Segment Profit
Ⅰ－６．Analysis of Increase/Decrease in Housing Materials Segment Profit (Millions of yen) 5,000 4,800 404 4,600 4,400 4,200 1,476 4,000 3,800 3,600 3,505 32 26 35 24 16 1,901 3,400 3,200 3,000 ・Sales of high- strength 2,800 products 2,576 2,600 228 166 2,400 2,200 2,000 ・Of which, the aluminum price h
Slide 11: Forecast of Financial Results for the FY 2022/12
Ⅱ．Forecast of Financial Results for the FY 2022/12
Slide 12: Full-year Financial Results Forecast (Consolidated)
Ⅱ－１．The full-year financial results forecast (Consolidated) (Millions of yen) （百万円） <<Reference>> FY2021/12 FY2022/12 FY2022 （Apr.-Dec.） （Apr.-Dec.） Changes （Apr.-Mar.） （Result） （Forecast） （Result） Net sales 39,229 46,000 17.3% 54,137 Operating profit 6,158 5,800 ▲ 5.8% 8,400 Ordinary profit 6,721 6
Slide 13: Business Forecast by Segment (Consolidated)
Ⅱ－２．Business Forecast by Segment (Consolidated) （百万円） （Millions of yen） <<Reference>> FY2021/12 FY2022/12 FY2022 Net sales （Apr.-Dec.） （Apr.-Dec.） Changes （Apr.-Mar.） （Result） （Forecast） （Result） Chemicals operations 25,499 30,000 17.6% 34,995 Housing Materials 12,772 15,000 17.4% 17,961 Operations
Slide 14: Capital Investment, Depreciation, R&D Expense
Ⅱ－３．Capital investment, Depreciation, R&D expense （Consolidated） （百万円） （Millions of yen） 5,000 Of which, production plant related (TAP-4, NEO2022) was 1,386 million yen 4,000 3,000 Capital investment Depreciation 2,000 R&D expenses 1,000 0 FY2018/3 FY2019/3 FY2020/3 FY2021/3 FY2022/3 FY2022/12 2018/
Slide 15: Long-term Vision Challenge 1000 STAGE 1 Progress Status
Ⅲ．Long-term Vision Challenge 1000 “STAGE 1” Progress Status
Slide 16: Outline of Challenge 1000 ①
Ⅲ－１． Outline of Challenge 1000 ① present FY 2020 2022 2025 2029 Long-Term Vision Challenge 1000 STAGE 1 STAGE ２ STAGE ３ With its corporate philosophy “Dokusouryoku (creativity)”, the Group established its long-term vision “Challenge 1000” to become a company that makes a proposal one step ahead with
Slide 17: Outline of Challenge 1000 ②
Ⅲ－２． Outline of Challenge 1000 ② ・ Profitability and financial position deteriorated due to diversified management in the 1980s and 1990s. Under the Medium-term Management Plan “SSS” Series, with the basic policy of returning to the core business, the company was reborn with a strong and robust mana
Slide 18: Outline of Challenge 1000 ③
Ⅲ－３． Outline of Challenge 1000 ③ 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 Operating Income 15 billions of yen Proactive Shareholder Investment ROE Ach
Slide 19: Financial Goals
円） Ⅲ－４． Financial goals 40.0% （ Billions of売上高 yen ） Implementing various measures in line with the strategic pillars （連結） Net sales to achieve the goals set at each STAGE 100.0 （Consolidated） 35.0% 新規事業 5.0 New 売上高 business 95.0 30.0% sales 80.0 既存事業 2.5 売上高 Existing 77.5 business 25.0% sales 60.0
Slide 20: Progress Summary (FY2022/3)
Ⅲ－５． Progress Summary (FY2022/3) ◆ For FY2022/3 results, operating profit progressed according to the “STAGE 1” plan. Financial ・ Net sales for FY2022/3 reached a record high but did not achieve the plan. Operating profit achieved the plan. Targets ・ FY2022/12 is the final year of “STAGE 1”. Due to
Slide 21: Progress on Business Reform Policy
Ⅲ－６． Progress on Business Reform Policy Next FY2022/12 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 sulfur 14 bill
Slide 22: Progress on Companywide Reform Policy
Ⅲ－７． 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 (Proactive Investment): TAP-4
Ⅲ－８． Pillar for Strategy (Proactive Investment) Fine chemicals production facilities (TAP-4) ・ Investment of 2.5 billion yen in new fine chemicals production facilities at Tokushima Plant, which started operation in July 2021 - Multi-plant capable of handling prototyping to mass production - Owning
Slide 24: Pillar for Strategy (Proactive Investment): NEO2022
Ⅲ－９． Pillar for Strategy (Proactive Investment) Chlorinated isocyanuric acid production facilities (NEO2022) ・ Construction of new 5 billion yen chlorinated isocyanuric acid production facilities completed in April 2022 at the Tokushima Plant - Increase production efficiency => Strengthen global exp
Slide 25: Pillar for Strategy (Achievement of SDGs)
Ⅲ－１０． Pillar for Strategy (Achievement of SDGs) ◆ Expansion of 2022 CSR Report CSR Report (2022 edition) to be released on our website in August The following topics will be added to the 2022 edition: ◆ Materiality Themes ◆ Climate change initiatives, etc. 25
Slide 26: Shareholders Return: Transitions in Dividend Payouts
Ⅲ－１１． Shareholders Return–Transitions in Dividend Payouts– (Millions of yen) （百万円） （％） 4,000 56.6 60.0 自己株式取得額 55.1 Total payout ratio targeted 51.1 3,500配当総額 50% 50.0 3,000 連結総還元性向（％） Share Repurchases Total Dividends 40.0 2,500 2,474 Total Payout Ratio(%) 1,786 1,605 2,000 30.0 23.8 0 1,500 20.0 1
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 Preparing for transition to a holding company structure from January 2023 Objectives (1) Enhancement of the business operation structure Speed up decision-making by boldly transferring authority to each operating company (2) Governance structure and r
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] SHIKOKU KASEI HOLDINGS CORPORATION （Our company） SHIKOKU KASEI CORPORATE SERVICE CO., LTD. 【Shared Service】 （Successor company: newly established ） SHIKOKU KASEI SHIKOKU CHEMICALS KENZAI CORPO
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
Slide 31: Thank you for your attention!
Thank you for your attention!
Slide 32: References
V.References
Slide 33: Financial Data
Financial Data
Slide 34: Consolidated Balance Sheets
Ⅴ－１．Consolidated Balance Sheets (Millions of yen) Increase of FY2021/3 FY2022/3 amount Current assets 65,024 67,668 2,644 Accounts receivable - trade（+1,767） Non-current assets 42,319 46,137 3,818 Investment securities（+2,625） Total assets 107,344 113,805 6,461 Current portion of long-term Current l
Slide 35: Consolidated Statements of Cash Flows
Ⅴ－２．Consolidated Statements of Cash Flows (Millions of yen) FY2021/3 FY2022/3 Net cash provided by (used in) operating activities 7,411 5,089 Net cash provided by (used in) investing activities (2,999) (5,087) Net cash provided by (used in) financing activities 89 (1,809) Net increase (decrease) in
Slide 36: Corporate Profile
Corporate Profile
Slide 37: Corporate Profile
Ⅴ－３．Corporate Profile （As of March 31, 2022） 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 N
Slide 38: Business Structure
Ⅴ－４ ． 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 39: History
Ⅴ－５ ． 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 40: History and Sales Trends
Ⅴ－６ ． History and Sales Trends 2022 Net Sales Moved to Tosho Prime Market 1975 Moved to Tokyo Stock 1962 Exchange Section 1 2016 GliCAP Listed on Tokyo Stock Microetching solution 2008 Exchange Section 2 for PWBs 2004 Advanced Materials 1991 Glicoat-SMD 1947 1984 Insoluble Sulfur Establishment 1972
Slide 41: Chemicals Operations
Chemicals Operations
Slide 42: Inorganic Chemicals
Chemicals Operations ①Inorganic Chemicals
Slide 43: Inorganic Chemicals
Ⅴ－７ ． 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 12,192(2
Slide 44: Insoluble Sulfur - Product Introduction
Ⅴ－８ ． 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 45: Organic Chemicals
Chemicals Operations ②Organic Chemicals
Slide 46: Organic Chemicals
Ⅴ－９ ． Organic Chemicals (Millions of yen) [Major products] □ Chlorianted Isocyanurates（NEO-CHLOR） … for swimming pool and septic tank FY2022/3 disinfectants Consolidated □ HIPOLKA … Wastewater/sludge treatment Net Sales agent 54,137 Organic Chemicals 13,023(24.0%) 46
Slide 47: Chlorinated Isocyanurates - Product Introduction
Ⅴ－１０. 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 48: Fine Chemicals
Chemicals Operations ③Fine Chemicals
Slide 49: Fine Chemicals
Ⅴ－１１. Fine Chemicals (Millions of yen) FY2022/3 Consolidated Net Sales 54,137 [Major products] Fine Chemicals □ Glicoat-SMD… Water-soluble rust preventive agent for 9,778(18.1%) printed wiring boards (OSP) □ Advanced & Specialty Chemicals… Imidazoles (curing agent of epoxy resin) Resin modifier, raw
Slide 50: OSP: Organic Solderability Preservative - Product Introduction
Ⅴ－１２. 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 51: Advanced & Specialty Chemicals - Imidazoles
Ⅴ－１３. 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 52: Advanced & Specialty Chemicals - Imidazoles
Ⅴ－１４. 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 53: Focused Products (Printed Wiring Boards Agents)
Ⅴ－１５. 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 54: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１６. 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 55: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１７. 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 56: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１８. 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 57: Housing Materials Operations
Housing Materials Operations
Slide 58: Interior, Exterior Finishes and Paving Materials
Housing Materials Operations ④Interior, Exterior Finishes and Paving Materials
Slide 59: Interior, Exterior Finishes and Paving Materials
Ⅴ－１９. 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 chemical substance and daily odor FY2022/3 adsorption/decomposition function Con
Slide 60: Interior, Exterior Finishes and Paving Materials
Ⅴ－２０. 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 61: Interior, Exterior Finishes and Paving Materials
Ⅴ－２１. 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 62: Exterior Products
Housing Materials operations ⑤Exterior Products
Slide 63: Exterior Products
Ⅴ－２２. Exterior Products (Millions of yen) [Major products] Home Exterior Products □ Gates, fences, carports, and decks Exterior □ Accordion gates First product Products (expansion type gates) in industry 16,565(30.6％) □ Art Wall which was FY2022/3 developed by Consolidated (aluminum system fence) ou
Slide 64: Home Exterior Products
Ⅴ－２３. 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 65: Decorative Exterior Products
Ⅴ－２４. Decorative Exterior Products ■ Pathway shelter ■ Bicycle parking space ■ High strength car stops ■ Garbage accumulation storage ） 65
Slide 66: Efforts in Housing Materials Business
Ⅴ－２５．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 67: Long-Term Vision
Long-Term Vision
Slide 68: Business Reform Policy (Chemicals Operations)
Ⅴ－２６. 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 69: Business Reform Policy (Housing Materials)
Ⅴ－２７. 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 70: Companywide Reform Policy
Ⅴ－２８. 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 71: Yonpou Yoshi - Contributions to Stakeholders
Ⅴ－２９. 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 72: Contact Information
Contact Information Corporate Planning Dept. 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 informat