Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q3 2023 Earnings Presentation
30 slides from Sekisui Chemical's earnings presentation, Jan 30, 2024
Slide 1: Presentation of Financial Results for 3Q FY2023
SEKISUI CHEMICAL CO., LTD. FY2023, ending March 31, 2024 Presentation of Financial Results for 3Q Futoshi Kamiwaki Representative Director Senior Managing Executive Officer January 30, 2024
Slide 2: Results for 3Q and Forecasts for FY2023: Forex Rate
Results for 3Q and Forecasts for FY2023 FY2022 FY2023 Forex Rate 2H Plan 3Q 4Q 2H 3Q 4Q 2H (Oct.) In-house ¥145/US$ ¥144/US$ ¥146/US$ ¥145/US$ assumptions ‐ ‐ ‐ ¥158/€ ¥158/€ ¥159/€ ¥158/€ Results ¥142/US$ ¥132/US$ ¥137/US$ ¥148/US$ (Avg. rate for ‐ ‐ each term) * ¥144/€ ¥142/€ ¥143/€ ¥159/€ * Expor
Slide 3: Overview of FY2023 3Q and 1Q-3Q Results
Overview of FY2023 3Q and 1Q-3Q Results ▌ Increases in net sales and profit (operating profit, ordinary profit, and the bottom line) in the 3Q ▌ Net sales and operating profit slightly above plans (Oct.) in 3Q ▌ Increases in net sales, operating profit and the bottom line for the cumulative 3Q perio
Slide 4: FY2023 3Q and 1Q-3Q Results by Segment
FY2023 3Q and 1Q-3Q Results by Segment ▌ Despite some improvement in global market conditions in 3Q, recovery was slower than expected, mainly in Europe, the U.S., and Japan. Net sales and operating profit increased Group-wide by securing margins and controlling fixed costs • HPP*: Although the reco
Slide 5: Outlook for Market Conditions
Outlook for Market Conditions Number of Automobiles Manufactured (YoY) Housing and Visitors (YoY) 3Q was slightly higher than expected (Oct.). Expected to continue Sluggish recovery in exhibition visitors with overall visitors expected growing year-on-year in 4Q to continue to be lower than previous
Slide 6: 2H FY2023 Forecasts by Segment
2H FY2023 Forecasts by Segment ▌ 2H net sales and operating profit will increase in all segments except Housing. Net sales and operating profit are expected to increase Group-wide ▌ Net sales and operating profit forecasts revised downward (operating profit down ¥5 billion) • Other forecast breakdow
Slide 7: 2H FY2023 Forecasts by Segment (3Q & 4Q)
2H FY2023 Forecasts by Segment (3Q & 4Q) ▌ The impact of decreased demand in the Housing Business in 4Q will continue to be offset by all other segments but mainly on HPP, with Group-wide net sales increasing and operating profit at the same level as the previous year ★: Record high ★: Record high 4
Slide 8: 2H FY2023 Forecasts Analysis
2H FY2023 Forecasts Analysis ▌ Although market conditions have shown some improvement, recovery has been slower than expected. Despite an increase in net sales and operating profit aided by the effects of maintaining margins, controlling fixed costs, and foreign exchange gains, Group-wide the foreca
Slide 9: FY2023 Forecasts by Segment
FY2023 Forecasts by Segment ▌ Secured increases in net sales and operating profit in all segments except Housing. Net sales and operating profit are expected to increase Group-wide ▌ HPP and UIEP are expected to achieve record high annual profits in line with plans (Oct.). Medical segment also expec
Slide 10: Overview of FY2023 Forecasts
Overview of FY2023 Forecasts ▌ Increased net sales. Operating profit and final profit expected to increase ▌ Although net sales and operating profit will be short of plan (Oct.), ordinary profit and the bottom line expected to be in line with plan (Oct.) ▌ The bottom line expected to reach a new rec
Slide 11: Consolidated Performance
Consolidated Performance ▌ Continue to strengthen business foundation (earning power), accelerating growth shift (JPY billion) EBITDA 119.9 119.3 126.7 133.4 137.7 137.3 133.2 116.6 137.6 142.1 148.0 1,262.3 1,242.5 1,242.5 1,157.9 1,142.7 1,129.3 Net sales 1,110.9 1,112.7 1,096.3 1,107.4 1,065.8 1,
Slide 12: HPP: 2H FY2023 Forecasts Analysis
HPP 2H FY2023 Forecasts Analysis Company ▌ Although the recovery in market conditions in the Electronics field, and mainly in Europe, the US, and Japan, was below expectations, the robust Mobility field will make up for the drop in the HPP market, resulting in a significant increase in sales volumes
Slide 13: HPP: Three Strategic Fields
HPP Three Strategic Fields Company Net Sales Trends and KPIs in the Three Strategic Fields Growth Growth 11 businesses clarified as strengthening the current PF driving potential in the Drive 2.0 Medium-term Management Plan. Electronics Mobility Molding products, Electronics (semiconductor and Mobil
Slide 14: Housing: 2H FY2023 Forecasts Analysis
Housing 2H FY2023 Forecasts Analysis Company ▌ In 3Q, both net sales and operating profit slightly higher than planned due to levelling out, controlling fixed costs, and a strong Renovation Business, but remaining at the same level as the previous year. New housing orders received lower than previou
Slide 15: Housing: KPIs by Business
Housing KPIs by Business Company Housing Business New Housing Orders (YoY) Number of Orders by Type of Construction Smart House-related Indicators*3 • 2H order plan revised downward due to continued • Recovery trend on total orders • Steady progress in each of the indicators; slump in market conditi
Slide 16: UIEP: 2H FY2023 Forecasts Analysis
UIEP 2H FY2023 Forecasts Analysis Company ▌ Despite sluggish housing market conditions and delays to non-residential properties in Japan , net sales and operating profits are expected to increase as planned by maintaining margins and thoroughly controlling fixed costs. Operating profit in 2H is proj
Slide 17: UIEP: Three Strategic Fields
UIEP Three Strategic Fields Company Net sales in the Three Strategic Fields and KPI’s Building and Performance Construction and Fire resistant and non- Pipe Systems materials (railroad flammable materials industrial piping Infrastructures Composite Materials sleepers, etc.) Pipe and joint materials
Slide 18: Medical: 2H FY2023 Forecasts Analysis
Medical 2H FY2023 Forecasts Analysis Business ▌ Although demand for infectious disease testing in Japan is increasing and demand for new pharmaceutical ingredients remains strong, net sales and profit are expected to fall short of plan (Oct.) due to delays in expanding sales of blood coagulation rea
Slide 19: Medical: Overview by Business
Medical Overview by Business Business Net sales by Business and Overview of Progress Overseas testing Diagnostics (Japan) Diagnostics (overseas) system • 3Q: Despite difficult sales for blood coagulation reagents, demand for • 3Q: Blood coagulation reagents remain strong in China despite infectious
Slide 20: Financial Results 3Q FY2023
Financial Results 3Q FY2023 19
Slide 21: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2023 Dec. 31, 2023 Difference Consolidated Increased: 0 Subsidiaries subsidiaries 148 144 Decreased: 4 Subsidiaries*1 Affiliates Increased: 0 Subsidiaries 7 6 (Equity Method) Decreased: 1 Subsidiary*2 *1 Sekisui (Shanghai) Environmenta
Slide 22: Summary of Profit and Loss
Summary of Profit and Loss + 1Q-3Q 1Q-3Q Difference (JPY billion) FY2022 FY2023 Net sales 912.2 923.9 +11.7 Gross profit 276.8 288.0 +11.2 Gross profit margin 30.3% 31.2% +0.8% Foreign exchange gains: +5.3 Selling, general and administrative expenses 214.4 222.2 +7.8 Foreign exchange gains: +2.9 Ope
Slide 23: Balance Sheets (Assets)
Balance Sheets (Assets) Dec.31 Inventories (B/S item) 2023 Difference Ready-built housing (products) 38.5 +5.8 Prepared land for subdivision Mar. 31, 2023 Dec. 31, 2023 Difference housing 65.1 +1.0 (JPY billion) Land under preparation (work in process) 11.7 +1.7 Cash and deposits 101.1 111.2 +10.1 H
Slide 24: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (JPY billion) Mar. 31, 2023 Dec. 31, 2023 Difference Non-interest-bearing liabilities 375.1 367.1 -8.1 Interest-bearing liabilities 120.5 120.7 +0.2 Net profit: +58.4 [Net interest-bearing liabilities] [19.4] [9.5] [-9.9] Dividends paid: -27.8 Total liabilit
Slide 25: Consolidated Cash Flows
Consolidated Cash Flows (JPY billion) 1Q-3Q FY2022 1Q-3Q FY2023 Cash flows from operating activities 34.1 64.8 Cash flows from investing activities -41.2 -2.6 Cash flows from financing activities -47.5 -50.9 Net increase in cash and cash equivalents -53.3 14.9 Cash and cash equivalents at end of per
Slide 26: Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure ★: Record high 1Q-3Q 1Q-3Q FY2023 Difference FY2022 Difference (JPY billion) FY2022 FY2023 Forecasts Depreciation*1 35.6 36.9 +1.3 47.7 50.3 +2.6 Goodwill and other amortization*2 1.9 2.0 +0.1 2.7 2.7 0 Capital ex
Slide 27: Housing Company Results and Plan: Main Data
Housing Company Results and Plan 1. Main data in Housing business 5ｚｚｚｚｚｚｚｚｚｚｚｚｚ FY2023 FY2022 Annual FY2021 1H 2H Plan 1H 2H Annual 3Q Plan 3Q Net sales (JPY billion) 264.8 126.7 263.5 528.3 260.2 129.0 277.2 537.4 515.2 Housing 175.3 83.2 170.3 345.6 177.2 85.2 186.4 363.6 354.7 CONSOLIDATED Renov
Slide 28: Housing Company Results and Plan: Orders
Housing Company Results and Plan A FY2023 FY2022 FY2021 2. Housing orders 2H Annual (Millions of yen) 1H 3Q 1H 3Q 2H Annual 1H 3Q 2H Annual Forecasts Forecasts Year-start Backlog 164,300 147,200 147,200 - 185,000 186,900 186,900 - 184,800 192,500 192,500 - New construction ・Renovation Growth Rate -1
Slide 29: Forward-looking statements
This slide presentation contains forward-looking statements. These statements are based on current expectations and beliefs. However, actual results may differ from those expressed or implied due to a number of factors and uncertainties such as changes in the global economy and our business, competi
Slide 30: SEKISUI
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