Kurita Water Industries Ltd. · TSE:6370
Kurita Water Industries — H1 FY2023 Earnings Presentation
31 slides from Kurita Water Industries's earnings presentation, Nov 1, 2022
Slide 1: Results Presentation for the First Half of the Fiscal Year Ending March 31, 2023
Kurita Water Industries Ltd. Results Presentation for the First Half of the Fiscal Year Ending March 31, 2023 (Securities code: 6370) November 1, 2022
Slide 2: Table of Contents
Table of Contents 1 Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2023 p 1-10 2 Consolidated Business Forecast for the Fiscal Year Ending March 31, 2023 p 11-20 3 Progress on Priority Measures p 21-25
Slide 3: Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2023
1 Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2023
Slide 4: Overview of Results
Overview of Results 1st Half Forecast (Billions of Yen) 1H of FY ended 03/2022 1H of FY ending 03/2023 YoY Change (Announced in July) Orders 147.8 200.4 +35.6% 178.0 Net Sales 135.2 160.7 +18.8% 160.5 Business Profit 14.9 16.6 +11.6% 17.3 Net of Other Income and Expenses (0.1) (0.3) ー (0.7) Operatin
Slide 5: Results by Segment
Results by Segment (Billions of Yen) 1H of FY ended 1H of FY ending YoY Change 1H Forecast ⚫ Both net sales and profit in the Water Treatment (Billions of Yen) 03/2022 03/2023 (Announced in July) Chemicals business rose chiefly due to overseas Orders 147.8 200.4 +52.6 178.0 business growth. Net Sale
Slide 6: Factors in Change in Business Profit (YoY Change)
Factors in Change in Business Profit (YoY Change) (Billions of Yen) Impact of Worsening in the increased sales cost of sales ratio Increase in 25 +9.3 (2.4) SG&A expenses (5.2) 20 16.6 14.9 ⚫ Increased raw materials prices and logistics costs 15 in the Water Treatment Chemicals business ⚫ Increase i
Slide 7: Water Treatment Chemicals
Water Treatment Chemicals (Billions of Yen) 1H of FY ended 03/2022 1H of FY ending 03/2023 YoY Change 1H Forecast (Announced in July) ⚫ In Japan, due to the continued impact of COVID-19 and shortages of semiconductors in certain Orders 58.7 69.2 +10.5 68.2 industries, net sales were almost unchanged
Slide 8: Water Treatment Facilities (for the domestic electronics industry)
Water Treatment Facilities (for the domestic electronics industry) (Billions of Yen) 1H of FY ended 1H of FY ending YoY Change 1H Forecast ⚫ Orders for facilities increased reflecting orders for 03/2022 03/2023 (Announced in July) large projects, and net sales also increased due to Orders 32.6 41.9
Slide 9: Water Treatment Facilities (for domestic general industries)
Water Treatment Facilities (for domestic general industries) (Billions of Yen) 1H of FY ended 1H of FY ending YoY Change 1H Forecast ⚫ Energy and infrastructure orders rose reflecting 03/2022 03/2023 (Announced in July) large projects for maintenance and facilities for Orders 28.8 33.4 +4.5 28.8 gen
Slide 10: Water Treatment Facilities (Overseas)
Water Treatment Facilities (Overseas) 1H of FY ended 1H of FY ending 1H Forecast (Billions of Yen) 03/2022 03/2023 YoY Change (Announced in July) ⚫ Orders exceeded the forecast against a backdrop of Orders 27.8 56.0 +28.2 44.8 strong investment demand in the electronics industry, mainly semiconducto
Slide 11: Breakdown of Service Business Sales
Breakdown of Service Business Sales (Billions of Yen) 1H of FY ended 1H of FY ending YoY Change 1H Forecast ⚫ Net sales in the Water Treatment Chemicals 03/2022 03/2023 (Announced in July) business rose due to a growth overseas. Water Treatment 58.1 68.4 +10.3 67.5 Chemicals ⚫ In the Water Treatment
Slide 12: Capital Expenditures, Depreciation and R&D Expenses
Capital Expenditures, Depreciation and R&D Expenses (Billions of Yen) 1H of FY ended 1H of FY ending YoY ⚫ Capital expenditures declined compared to the same 03/2022 03/2023 Change period of the previous fiscal year due to the absence Capital Expenditures 28.8 26.5 (2.2) of investments related to ne
Slide 13: Financial Condition
Financial Condition (Billions of Yen) End of End of Change ⚫ Property, plant and equipment increased, mainly March 2022 September 2022 reflecting the acquisition of ultrapure water supply Cash and Cash Equivalents 45.7 42.8 (3.0) business facilities. Other Current Assets 132.7 134.2 +1.5 ⚫ Goodwill
Slide 14: Consolidated Business Forecast for the Fiscal Year Ending March 31, 2023
2 Consolidated Business Forecast for the Fiscal Year Ending March 31, 2023
Slide 15: Assumptions for Business Forecasts
Assumptions for Business Forecasts ⚫ The domestic economy will recover from the first half moderately. ⚫ The recovery of overseas economies will be slower than in the previous fiscal year but will continue in the 2nd half. ⚫ In the electronics industry, strong capital expenditures and high-capacity
Slide 16: Overview of Business Forecast
Overview of Business Forecast FY ended FY ending Previous Forecast (Billions of Yen) 03/2022 Results 03/2023 Forecast YoY Change (Announced in July) Orders 315.2 365.0 +15.8% 336.5 Net Sales 288.2 350.0 +21.4% 338.0 Business Profit 32.9 39.0 +18.4% 38.0 Net of Other Income and Expenses 2.8 (1.0) ー (
Slide 17: Forecasts by Segment
Forecasts by Segment (Billions of Yen) FY ended 03/2022 FY ending 03/2023 YoY Change Previous Forecast ⚫ Orders, net sales and profit forecasts for the Water Result Forecast (Announced in July) Treatment Chemicals business are revised upward Orders 315.2 365.0 +49.8 336.5 in light of the progress in
Slide 18: Factors Behind Change in Business Profit (YoY Change)
Factors Behind Change in Business Profit (YoY Change) Worsening of Impact of the cost of Increase in (Billions of Yen) increased sales sales ratio SG&A 50 expenses +12.1 (2.8) (5.0) Increase in 39.0 40 the first half 32.9 +1.7 30 ⚫ Increase in expenses related to the operation of ⚫ Improvements main
Slide 19: Water Treatment Chemicals
Water Treatment Chemicals FY ended FY ending (Billions of Yen) 03/2022 Results 03/2023 Forecast YoY Change Previous Forecast (Announced in July) ⚫ Orders and net sales forecasts for Japan are revised downward reflecting the progress in the first half, Orders 118.4 136.5 +18.1 134.0 and those for the
Slide 20: Water Treatment Facilities (for the domestic electronics industry)
Water Treatment Facilities (for the domestic electronics industry) (Billions of Yen) FY ended FY ending YoY Change Previous Forecast ⚫ In facilities, orders forecast is revised upward 03/2022 Results 03/2023 Forecast (Announced in July) reflecting the result for the first half. Net sales Orders 86.7
Slide 21: Water Treatment Facilities (for domestic general industries)
Water Treatment Facilities (for domestic general industries) (Billions of Yen) FY ended FY ending YoY Change Previous Forecast ⚫ Order forecast in energy and infrastructure is revised 03/2022 Results 03/2023 Forecast (Announced in July) upward reflecting the recovery in demand for Orders 44.2 63.1 +
Slide 22: Water Treatment Facilities (Overseas)
Water Treatment Facilities (Overseas) FY ended FY ending Previous Forecast (Billions of Yen) 03/2022 Results 03/2023 Forecast YoY Change (Announced in July) ⚫ Orders and net sales in Water Treatment Facilities business overseas are revised upward as Orders 66.0 88.9 +22.9 72.7 businesses for the ele
Slide 23: Breakdown of Service Business Sales
Breakdown of Service Business Sales (Billions of Yen) FY ended FY ending YoY Change Previous Forecast ⚫ Service business net sales forecast is revised 03/2022 Results 03/2023 Forecast (Announced in July) upward mainly in Water Treatment Chemicals Water Treatment business and domestic maintenance. 11
Slide 24: Capital Expenditures, Depreciation and R&D Expenses
Capital Expenditures, Depreciation and R&D Expenses (Billions of Yen) FY ended FY ending YoY Change Previous Forecast ⚫ The capital expenditures, depreciation and R&D 03/2022 Results 03/2023 Forecast (Announced in July) expenses forecasts remain unchanged. Capital Expenditures (Property, Plant 66.4
Slide 25: Progress on Priority Measures
3 Progress on Priority Measures
Slide 26: Strengthening the profitability of Kurita America, Inc.
Strengthening the profitability of Kurita America, Inc. Strengthening the earnings base and expanding businesses to achieve growth ◼ Enhancing the ability to respond to Optimizing the supply chain customer needs ◼ Achieving business process improvement Reforming the cost structure ◼ Revising sales p
Slide 27: Increasing Growth Potential in the Electronics Industry
Increasing Growth Potential in the Electronics Industry Accelerating growth by taking advantage of the robust earnings base Diverse service business bases that are unlikely to be affected New directions by the capex trends Expanding the value-based, service contract-type business Ultrapure water sup
Slide 28: Expanding the Service Contract-type Business Targeting the Electronics Industry
Expanding the Service Contract-type Business Targeting the Electronics Industry Finding new needs based on social issues and customer issues Enhancing the service business lineup Ultrapure water supply for large to respond flexibly to needs and high-end plants that differ from customer to customer A
Slide 29: Growth in Precision Tool Cleaning Business
Growth in Precision Tool Cleaning Business Capturing new demand by taking advantage of Group synergies Kuritec Service Co., Ltd. Pentagon Technologies Group, Inc. Net sales 9.6 billion yen Net sales 15.1 billion yen Locations 8 in Japan Locations 7 in the U.S. and 1 in Europe (Fiscal year ended Marc
Slide 30: Expanding Solutions for General Industries
Expanding Solutions for General Industries Enhancing value-based service business Example of service for management of Example of service for papermaking process ironmaking raw materials [Sensing] Water quality measurement, monitoring, AI analysis analysis, and chemical injection control Aerial phot
Slide 31: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements, business plan projections, and judgments based on information available to management at the time of writing. Due to the existence of a variety of risk factors and uncertainties, actual results may differ from those sp
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