Shikoku Kasei Holdings Corporation · TSE:4099
Shikoku Kasei — Q2 FY2022/12 Earnings Presentation
71 slides from Shikoku Kasei's earnings presentation, Nov 1, 2022
Slide 1: Financial Results Presentation for the 2nd Quarter of FY 2022/12
Financial Results Presentation for the 2nd Quarter of FY 2022/12 November 1, 2022 Code number：4099
Slide 2: Contents
Contents 0. Our Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P3 I . Financial Results for the 2nd Quarter of FY 2022 /12 ・・ P4 II. Forecast of Financial Results for the FY 2022/12・・・・・・ P11 III. Long-term Vision Challenge 1000 ・・・・・・・・・・・・・・・・・・ P14 “STAGE 1” Progress Status IV. New Organizational S
Slide 3: Our Business
0 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 Chem
Slide 4: Financial Results for the FY 2022/12
Ⅰ．Financial Results for the FY 2022/12
Slide 5: Consolidated Financial Results
Ⅰ－ １． Consolidated Financial Results Net sales, operating profit, ordinary profit, and net income attributable to owners of the parent reached record highs. ・ Sales in Chemicals and Housing Materials exceeded the previous year’s level. ・ Profits increased due to price pass-through in energy, resou
Slide 6: Sales and Profit by Business Segments (consolidated)
Ⅰ－ ２． Sales and Profit by Business segments(consolidated) Net sales increased year-on-year in both Chemicals and Housing Materials Operations Segment profits increased in Chemicals Operations but decreased in Housing Materials Operations （Millions of yen） Net Sales 1H FY2022/3 Percentage 1H*FY20
Slide 7: Overview of Sales by Segment (Chemicals Products)
Ⅰ－ ３． Overview of Sales by Segment (Chemicals Products) 12,000 10,314 (Millions of yen) （+72.1％） 10,000 1H FY2022/3 7,088 2022/3 8,000 （+20.6％） 5,877 5,991 4,927 1H*FY2022/12 6,000 （+8.6％） 4,538 *1H（Apr.-Sep.） 4,000 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
Slide 8: Overview of Sales by Segment (Housing Materials Products)
Ⅰ－４．Overview of Sales by Segment (Housing Materials Products) (Millions of yen) 10,000 10,000 7,784 （+3.4％） 1H FY2022/3 8,000 8,000 7,527 1H*FY2022/12 6,000 6,000 *1H（Apr.-Sep.） 4,000 4,000 2,000 2,000 647 672 （▲3.7％） 0 0 Interior, Exterior Finishes 壁材 エクステリア Exterior Products and Paving Materials ◆
Slide 9: Analysis of Increase/Decrease in Chemicals Segment Profit
Ⅰ－５．Analysis of Increase/Decrease in Chemicals Segment Profit Profits increased due to the price pass-through of soaring materials and logistics costs, coupled with the yen depreciation. (FX impact: +1,180 million yen) (Millions of yen) Operating profit in Decrease in sales Increase in sales Incre
Slide 10: Analysis of Increase/Decrease in Housing Materials Segment Profit
Ⅰ－６．Analysis of Increase/Decrease in Housing Materials Segment Profit Profits decreased due to price hikes of raw materials (aluminum) and production adjustment of wall finishes and exterior products, despite price increases of products. (FX Impact: -144 million yen) (Millions of yen) Operating prof
Slide 11: Forecast of Financial Results for the FY 2022/12
Ⅱ．Forecast of Financial Results for the FY 2022/12
Slide 12: The full-year financial results forecast (Consolidated)
Ⅱ－１．The full-year financial results forecast (Consolidated) 12
Slide 13: Capital investment, Depreciation, R&D expense (Consolidated)
Ⅱ－２．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 14: Long-term Vision Challenge 1000 "STAGE 1" Progress Status
Ⅲ．Long-term Vision Challenge 1000 “STAGE 1” Progress Status
Slide 15: 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 16: 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 Operating Income 15 billions of yen Proactive Shareholder Investment ROE Ach
Slide 17: Financial goals
円） Ⅲ－３． 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 18: Progress Summary (From FY2022/3 onward)
Ⅲ－４． Progress Summary (From FY2022/3 onward) Net sales for FY2022/12 are expected to exceed the previous year on a 9-month comparison basis. Financial ・ FY2022 is the final year of “STAGE 1.” For the 2nd quarter, net sales and profits hit a record high. Net sales are expected to increase from the
Slide 19: Pillar for Strategy (Proactive Investment): Fine and Inorganic Chemicals
Ⅲ－５． Pillar for Strategy (Proactive Investment) Fine Chemicals, Inorganic Chemicals Established new fine chemicals production facilities (TAP-4) Schedule: Started operation in July 2021. Construction site: Kitajima location, Tokushima Plant. Investment: 2.5 billion yen. Special features: Multi-plant
Slide 20: Pillar for Strategy (Proactive Investment): Organic Chemicals
Ⅲ－６． Pillar for Strategy (Proactive Investment) Organic Chemicals Established new production facilities for chlorinated isocyanurates (NEO2022) Schedule: Started operation in July 2022. Construction site: Newly established at Kitajima location, Tokushima Plant. Investment: 5 billion yen. Purpose of
Slide 21: Business Reform Policy (Organic Chemicals)
Ⅲ－７． Business Reform Policy (Organic Chemicals) Released washing tub cleaner, "WASHMANIA" Product website (in Japanese) Expand the business domains, including downstream portions, under the vision of “Delivering cleanliness to people across the globe by protecting the environment and ensuring sanita
Slide 22: Pillar for Strategy (Achievement of SDGs)
Ⅲ－８． Pillar for Strategy (Achievement of SDGs) Materiality themes: Identify and address high-priority issues for stakeholders and the Group. 22
Slide 23: Shareholders Return – Transitions in Dividend Payouts
Ⅲ－９． Shareholders Return–Transitions in Dividend Payouts– Share buyback of 1,328 million yen in September 2022. The annual dividend per share is expected to increase by 2 yen to 26 yen as the commemorative dividend for the 75th anniversary of the foundation. （百万円） （％） 4,000 56.6 60.0 自己株式取得額 55.1 (M
Slide 24: New Organizational Structure
Ⅳ．New Organizational Structure
Slide 25: Transition to a Holding Company Structure-1
Ⅳ－１． Transition to a Holding Company Structure-1 Establish a new management structure to achieve “Challenge 1000” as the new SHIKOKU KASEI GROUP. Each business will enhance its expertise to realize speedy decision-making and efficient business activities. [Group management structure after the transi
Slide 26: Transition to a Holding Company Structure-2
Ⅳ－２． Transition to a Holding Company Structure-2 With the awareness of "management in which all employees participate," the Group will work together to create new value. FY 2029 present 2025 2022 2020 ●Transition to a Holding Company Structure STAGE 1 STAGE ２ STAGE ３ 26
Slide 27: Thank you for your attention!
Thank you for your attention!
Slide 28: References
V. References
Slide 29: Financial Data
Financial Data
Slide 30: Consolidated Balance Sheets
Ⅴ－１．Consolidated Balance Sheets (Millions of yen) Increase of Mar.31, 2022 Sep.30,2022 amount Current assets 67,668 68,111 443 securities(+800) machinery, equipment and vehicles(+2,282) Non-current assets 46,137 46,356 218 investment securities(▲1,585) construction in progress(▲1,298) Total assets 1
Slide 31: Consolidated Statements of Cash Flows
Ⅴ－２．Consolidated Statements of Cash Flows (Millions of yen) 1H FY2022/3 1H* FY2022/12 Net cash provided by (used in) operating activities 2,275 3,386 Net cash provided by (used in) investing activities (626) (1,488) Net cash provided by (used in) financing activities (1,928) (1,937) Net increase (de
Slide 32: Corporate Profile
Corporate Profile
Slide 33: Corporate Profile
Ⅴ－３．Corporate Profile （As of September 30, 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
Slide 34: 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 35: 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 36: 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 37: Chemicals Operations
Chemicals Operations
Slide 38: Inorganic Chemicals
Chemicals Operations ①Inorganic Chemicals
Slide 39: 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 7,088(22
Slide 40: 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 41: Organic Chemicals
Chemicals Operations ②Organic Chemicals
Slide 42: Organic Chemicals
Ⅴ－９ ． Organic Chemicals (Millions of yen) [Major products] □ Chlorianted Isocyanurates（NEO-CHLOR） FY2022/12 … for swimming pool and septic tank Consolidated disinfectants Cumulative Q2 □ HIPOLKA … Wastewater/sludge treatment Net Sales agent 31,297 Organic Chemicals 10,314(33.0%) 42
Slide 43: 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 44: Fine Chemicals
Chemicals Operations ③Fine Chemicals
Slide 45: Fine Chemicals
Ⅴ－１１. Fine Chemicals (Millions of yen) FY2022/12 Consolidated Cumulative Q2 Net Sales 31,297 [Major products] Fine Chemicals □ Glicoat-SMD… Water-soluble rust preventive agent for 4,927(15.7%) printed wiring boards (OSP) □ Advanced & Specialty Chemicals… Imidazoles (curing agent of epoxy resin) Resi
Slide 46: 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 47: 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 48: 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 49: 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 50: 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 51: 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 52: 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 53: Focused Products (semiconductor process materials)
Ⅴ－１９. Focused Products (semiconductor process materials) Semiconductor process materials Semiconductor process materials are used to form circuits for semiconductor silicon wafers. It becomes more complex due to the creation of ultra-fine circuits, and the difficulty of material synthesis dramat
Slide 54: Housing Materials Operations
Housing Materials Operations
Slide 55: Interior, Exterior Finishes and Paving Materials
Housing Materials Operations ④Interior, Exterior Finishes and Paving Materials
Slide 56: Interior, Exterior Finishes and Paving Materials
Ⅴ－２０. 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 FY2022/12 adsorption/decomposition function Co
Slide 57: Interior, Exterior Finishes and Paving Materials
Ⅴ－２１. 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 58: Interior, Exterior Finishes and Paving Materials
Ⅴ－２２. 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 59: Exterior Products
Housing Materials operations ⑤Exterior Products
Slide 60: Exterior Products
Ⅴ－２３. 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 7,784(24.9％) □ Art Wall which was FY2022/12 developed by Consolidated (aluminum system fence) ou
Slide 61: Home Exterior Products
Ⅴ－２４. 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 62: Decorative Exterior Products
Ⅴ－２５. Decorative Exterior Products ■ Pathway shelter ■ Bicycle parking space ■ High strength car stops ■ Garbage accumulation storage ） 62
Slide 63: Efforts in Housing Materials Business
Ⅴ－２６．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 64: Long-Term Vision
Long-Term Vision
Slide 65: Progress on Business Reform Policy
Ⅴ－２７．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 66: Progress on Companywide Reform Policy
Ⅴ－２８．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 67: Business Reform Policy: Chemicals Operations
Ⅴ－２９. 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 68: Business Reform Policy: Housing Materials Operations
Ⅴ－３０. 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 69: Companywide Reform Policy
Ⅴ－３１. 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 70: Yonpou Yoshi - Contributions to Stakeholders
Ⅴ－３２. 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 Society Challenges and growth A better tomorrow We will support a fulfilling We will contribute to the life with a sen
Slide 71: 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
Shikoku Kasei Holdings — Q2 FY2022/12 Earnings Presentation on 6ix