Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q3 2021 Earnings Presentation
30 slides from Sekisui Chemical's earnings presentation, Jan 31, 2022
Slide 1: Presentation of Financial Results for 3Q FY2021
SEKISUI CHEMICAL CO., LTD. Presentation of Financial Results for 3Q FY2021, ending March 31, 2022 Futoshi Kamiwaki Director Senior Managing Executive Officer Head of Business Strategy Department January 31, 2022
Slide 2: Results for the 3Q and Forecasts for FY2021
Results for the ３Q and Forecasts for FY2021 FY2020 FY2021 Forex Rate 3Q 4Q 2H 3Q 4Q 2H 2H Plan (Oct.) Assumptions ¥110/US$ ¥114/US$ ¥114/US$ ¥110/US$ - - - ¥129/€ ¥128/€ ¥129/€ ¥129/€ Results ¥105/US$ ¥105/US$ ¥105/US$ ¥114/US$ (Avg. rate for ‐ ‐ each term) ¥125/€ ¥126/€ ¥126/€ ¥130/€ 1
Slide 3: Overview of 3Q FY2021 Results
Overview of 3Q FY2021 Results ∎ Despite soaring raw material prices and the prolonged impact of shortages in semiconductor supply, increases in Groupwide sales and operating income in the 3Q owing to the improvement in selling prices, increase in the number of new houses sold, and growth in diagnost
Slide 4: Overview of 1-3Q FY2021 Results
Overview of 1-3Q FY2021 Results ∎Increases in sales, operating income, and ordinary income ∎Decrease in the bottom line owing to the loss on impairment of SEKISUI AEROSPACE CORPORATION in the 1H 1-3Q FY2020 1-3Q FY2021 Difference (Billions of yen) Net Sales 756.4 838.7 +82.2 Operating Income 39.9 57
Slide 5: 3Q FY2021 Results: Net Sales and Operating Income by Divisional Company
3Q FY2021 Results: Net Sales and Operating Income by Divisional Company ∎Increase in sales in each segment and substantial profit growth in the Housing and Medical segments in the 3Q • HPP: Soaring raw material prices and the growing impact of shortages in semiconductor supply offset by improvements
Slide 6: Outlook for Market Conditions
Outlook for Market Conditions ∎Automotive demand lower than assumptions (Oct.) owing to the prolonged impact of shortages in semiconductor supply; raw material prices forecast to rise further Number of Automobiles Manufactured (YoY) Housing・Visitors (vs FY19) Prolonged impact of shortages in semicon
Slide 7: 2H FY2021 Forecasts: Net Sales and Operating Income by Divisional Company
2H FY2021 Forecasts: Net Sales and Operating Income by Divisional Company ∎Substantial increase in Groupwide sales; upward revision in sales, operating income projected to come in in line with plans (Oct.) ∎Increases in sales and profit in each segment ∎Upward revision in operating income in the Med
Slide 8: 3Q & 4Q FY2021 Forecasts by Divisional Company
3Q & 4Q FY2021 Forecasts: Net Sales and Operating Income by Divisional Company ∎While factoring in a further surge in raw material prices and the growing impact of prolonged shortages in semiconductor supply, projecting an increase in Groupwide profit in the 4Q 3Q FY2020 3Q FY2021 4Q FY2020 4Q FY202
Slide 9: 2H FY2021 Forecasts: Net Sales and Operating Income
2H FY2021 Forecasts: Net Sales and Operating Income ∎Sales projected to increase exceeding plans (Oct.) owing to the recovery in market conditions, improvement in selling prices, growth in sales of high-performance products, and other factors ∎Minimize the effect of soaring raw material prices and t
Slide 10: FY2021 Forecasts: Net Sales and Operating Income by Divisional Company
FY2021 Forecasts: Net Sales and Operating Income by Divisional Company ∎Projected to achieve operating income plans (Oct.) for both the Group and each segment ∎Target record-high profit in the Medical segment FY2021 FY2020 FY2021 Difference Plan Difference Results Forecasts (Oct. 2021) Net Operating
Slide 11: Overview of FY2021 Forecasts
Overview of FY2021 Forecasts ∎Substantial increase in sales; substantial increases also in profit with operating income and ordinary income projected to exceed FY2019 levels ∎Ordinary income forecast to reach a record high ∎Strengthen preparations with an eye toward the final FY of the Medium-term M
Slide 12: Progress under the Medium-term Management Plan, Drive 2022
Progress under the Medium-term Management Plan, Drive 2022 ∎Operating income in FY2021 to recover exceeding the level in FY2019 paving the way to achieve the FY2022 Medium-term Management Plan Operating Income FY2009-2013 FY2014-2016 FY2017-2019 FY2020-2022 Performance GS21-SHINKA! SHINKA!-Advance 2
Slide 13: HPP Company: 2H FY2021 Forecasts
HPP HPP Company: 2H FY2021 Forecasts Company ∎Despite the impact of a drop in automobile production owing to shortages in semiconductor supply as well as smartphone production, projecting a certain recovery in the Building and Infrastructure field ∎Offset the growing impact of further increases in r
Slide 14: HPP Company: Three Strategic Fields
HPP Three Strategic Fields Company ∎ Despite difficulties in the Mobility field owing to the drop in automobile production, the Electronics field to progress in line with plans in the 3Q; substantial increase in sales in the Building and Infrastructure field; projecting a partial recovery in automob
Slide 15: Housing Company: 2H FY2021 Forecasts
Housing Housing Company: 2H FY2021 Forecasts Company ∎ Despite a slowdown in new housing orders, substantial increases in sales and profit in the 3Q owing to an increase in the number of houses sold and cost reductions ∎ Despite the growing impact of soaring component costs in the 4Q, focusing on su
Slide 16: Housing Company: New Housing Orders
Housing New Housing Orders Company ∎ While a recovery in the 4Q number of visitors continues to be delayed, work to improve negotiation efficiency by strengthening WEB-based initiatives and utilizing experience-based facilities ∎ Secure orders in line with the previous year by actively introducing n
Slide 17: UIEP Company: 2H FY2021 Forecasts
UIEP UIEP Company: 2H FY2021 Forecasts Company ∎Offset the further surge in raw material prices through improvements in selling prices and reductions in fixed costs; projecting an increase in profit in line with plans (Oct.); expecting a partial recovery in both housing and non-residential market co
Slide 18: UIEP Company: Three Strategic Fields
UIEP Three Strategic Fields Company ∎Projecting increases in sales in each of the three strategic fields owing to the partial recovery in market conditions and progress in improving selling prices Net Sales in the Three Strategic Fields Advanced Materials Piping and Infrastructure • Sheets: Despite
Slide 19: Medical Business: 2H FY2021 Forecasts
Medical Medical Business: 2H FY2021 Forecasts Business ∎Steady trends in diagnostics demand in both Japan and overseas; projecting substantial increases in sales and profit due to growth in US COVID-19 diagnostics kit demand ∎Firm trends in the Pharmaceutical Science Business ∎Work to strengthen dev
Slide 20: Medical Business: Overview by Business
Medical Overview by Business Business ∎Projecting substantial increases in Diagnostics business sales, exceeding plans (Oct.) both in Japan and overseas; contributions from new pharmaceutical ingredients in the Pharmaceutical Sciences Business in line with plans Net Sales by Business and Overview of
Slide 21: Financial Results 3Q FY2021
Financial Results 3Q FY2021 20
Slide 22: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2021 Dec. 31, 2021 Difference Consolidated Increased: 0 Subsidiaries Subsidiaries 161 155 Decreased: 6 Subsidiaries*1 Affiliates Increased: 0 Subsidiaries (Equity Method) 8 8 Decreased: 0 Subsidiaries *1 Muhan Co., Ltd., SEKISUI SYSTEM
Slide 23: Summary of Profit and Loss
Summary of Profit and Loss 1-3Q FY2020 1-3Q FY2021 Difference (Billions of yen) Net Sales 756.4 838.7 +82.2 Gross Profit 235.9 259.8 +23.9 Sekisui Kasei Co., Ltd. portion: -1.6 Gross Profit Margin 31.2% 31.0% -0.2% Selling, Gen. and Admin. Expenses 196.1 202.3 +6.3 Operating Income 39.9 57.5 +17.6 F
Slide 24: Balance Sheets (Assets)
Balance Sheets (Assets) Dec. 31, Inventories (B/S item) 2021 Difference Ready-built housing (products) 28.6 +1.3 Prepared land for subdivision Mar. 31, 2021 Dec. 31, 2021 Difference housing 56.1 -2.6 (Billions of yen) Land under preparation (work in process) 9.9 -4.5 Cash and Deposits 87.5 116.9 +29
Slide 25: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (Billions of yen) Mar. 31, 2021 Dec. 31, 2021 Difference Net income Non-interest-bearing Liabilities 317.6 346.1 +28.5 +12.7 Interest-bearing Liabilities 138.2 121.3 -16.9 Dividends paid (Net interest-bearing Liabilities) (50.7) (4.4) (-46.4) -21.5 Retiremen
Slide 26: Consolidated Cash Flows
Consolidated Cash Flows 1-3Q FY2020 1-3Q FY2021 (Billions of yen) Operating Cash Flows 27.0 65.7 Investing Cash Flows -45.8 17.6 Financing Cash Flows 20.9 -53.1 Net Increase in Cash and Cash Equivalents 3.8 31.2 Cash and Cash Equivalents at the End of Term 78.6 107.9 Free Cash Flow =Operating Cash F
Slide 27: Depreciation and Amortization, Capital Expenditures, R&D Expenditure
Depreciation and Amortization, Capital Expenditures, Research and Development Expenditure FY2021 1-3Q FY2020 1-3Q FY2021 Difference FY2020 Difference (Billions of yen) Forecasts Depreciation 31.8 32.8 +0.9 42.9 44.6 +1.7 Goodwill and Other Amortization 4.8 3.8 -1.0 6.4 4.4 -2.0 Capital Expenditures
Slide 28: Forward-looking statements notice
This slide presentation may contain forward-looking statements. Such 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 statemen
Slide 29: Housing Company Results and Plan
Housing Company Results and Plan 1. Main data in Housing 5 business FY2021 FY2020 FY2019 2H Full Year Full Year 1H 1H 2H Full Year 3Q Forecasts Forecasts 3Q Net Sales (Billions of yen) 249.8 123.3 269.2 519.0 230.6 113.9 254.6 485.3 512.9 Housing 171.6 84.1 183.4 355.0 161.2 78.1 175.3 336.5 360.4 C
Slide 30: Housing Company Results and Plan: Orders
Housing Company Results and Plan 2. Housing orders FY2021 FY2020 FY2019 2H Full Year (Millions of yen) 1H 1H 2H Full Year 1H 2H Full Year 3Q Forecasts Forecasts 3Q 3Q Year-start Backlog 184,800 192,500 192,500 - 205,400 194,500 194,500 - 219,500 217,320 217,320 - Growth Rate -10% -1% -1% - -6% -11%