Hosokawa Micron Corporation · TSE:6277
Hosokawa Micron — FY2021 Earnings Presentation
60 slides from Hosokawa Micron's earnings presentation, Dec 24, 2021
Slide 1: Financial Results of FY2021
Financial Results of FY2021 24th Dec. 2021 Process Technologies for Tomorrow © HOSOKAWA MICRON CORP. All rights Reserved.
Slide 2: Contents
Contents 1. Financial Summary 2. Mid-term Business Plan 3. Reference © HOSOKAWA MICRON CORP. All rights Reserved. 1/58
Slide 3: Contents
Contents 1. Financial Summary 2. Mid-term Business Plan 3. Reference © HOSOKAWA MICRON CORP. All rights Reserved. 2/58
Slide 4: FY2021 Financial Summary
FY2021 Financial Summary (hundred million yen) Operating Ordinary Net Income Booking Net Sales attributable to Profit Profit owners of parent Consolidated 697 607 63 65 46 Year‐on‐Year 120.9% 113.6% 133.0% 131.3% 141.7% Consolidated 133 135 17 22 17 Non Year‐on‐Year 90.6% 97.9% 121.0% 124.3% 127.2%
Slide 5: Financial Summary (Consolidated)
Financial Summary (Consolidated) (hundred million yen) Sales (first half) Sales (second half） Gross Profit Ratio Operating profit ratio Profit Ratio Sales 700 60% 607 600 568 553 ※FY2015 include Confectionery 50% 534 331 495 296 473 270 500 446 268 264 40% 262 400 36.4% 36.9% 36.3% 36.2% 35.7% 35.5%
Slide 6: Financial Summary (Non-consolidated)
Financial Summary（Non-consolidated） (hundred million yen) Sales(first half) Sales(second half） Gross profit ratio Operating profit ratio Sales Profit Ratio 160 149 80% 142 138 131 135 140 76 70% 125 68 72 71 120 112 68 60% 59 56 100 44.1% 43.9% 50% 42.1% 42.5% 43.2% 41.4% 42.5% 80 40% 72 73 60 65 65
Slide 7: Financial Summary: Major Application
Financial Summary : Major Application Japan/Asian Group American Group European Group Market for materials of Lithium-Ion Battery beginning to start in East Asia, America and Europe. Recycle of carbon black from disposed tire. Powder Processing Cell Culture Medium for medical Products Business Chemi
Slide 8: Financial Summary; Application Segmentation
Financial Summary ; Application Segmentation ※Excepting Aftersales and toll processing 500 450 400 Blown 350 Film 208 Business 300 Blown Film Booking（100 million yen） 250 Chemical 80 200 Polymer 7 150 43 Powder Electric Material Processing 100 Minaral/Metal 44 Business 50 Pharmaceutical 48 Foods 33
Slide 9: Financial Summary; Geographical Segmentation
Financial Summary ; Geographical Segmentation Expanding business globally in a well-balanced manner in Japan (Asia), Europe, and the Americas ※Size of squares shows sales amount Sales by Group Companiesʼ Location 16.3% 58.1% 25.６% Sales by Customersʼ Location (Destination) 36.0% 22.59 21.1% 20.0% ©
Slide 10: Financial Summary; Major Group Companies
Financial Summary ; Major Group Companies ※Size of squares shows sales amount. Powder Processing Business Blown Film Business 456 hundred million yen 151 hundred million yen © HOSOKAWA MICRON CORP. All rights Reserved. 9/58
Slide 11: Booking by Business Segmentation
Booking by Business Segmentation 800 700 65 Booking（100 million yen） 600 27 Others 111 500 Toll processing After Sales 400 208 Blown film 300 200 Powder 287 100 processing 0 FY2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 © HOSOKAWA MICRON CORP. All rights Reserved. 10/58
Slide 12: Booking, Sales, Backlog (Consolidated)
Booking･Sales･Backlog（Consolidated） （hundred million yen） 450 Backlog Booking Sales Backlog 400 372 350 300 272 267 264 250 229 200 175 175 150 100 50 0 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4 1Q 2 3 4 FY2015 2016 2017 2018 2019 2020 2021 Strong Booking of both Powder Processing and Bl
Slide 13: Financial Summary; Profit / Loss
Financial Summary ; Profit / Loss Percent （Million Yen） FY2021 FY2020 Changes Change Booking 69,727 57,656 12,071 20.9% Net Sales 60,754 53,497 7,257 13.6% Gross Profit 21,564 19,357 2,207 11.4% Gross Profit Ratio 35.5% 36.2% -0.7pt - Operating Profit 6,370 4,791 1,579 33.0% Ordinary Profit 6,574 5,
Slide 14: Financial Summary; Profit / Loss
Financial Summary ; Profit / Loss Year on Year (+7,257) （Million Yen） FY2021 FY2020 Exchange US$(Dollar) JPY107.50 JPY107.88 Rate €(Euro) JPY128.50 JPY120.75 13.6% increase compared to last year Sales due to beginning high backlog and strong booking in the period. Selling, general 4.3% increase comp
Slide 15: Financial Summary; Balance Sheet
Financial Summary ; Balance Sheet As of year end of 2020 As of year end of 2021 (September 30, 2020) (September 30, 2021) （Million Yen） Current Liabilities Current Liabilities Assets 27,180 Increase in Cash Assets 24,605 ↑ 47,189 40,557 Increase in Advance Receipt Net Assets Net Assets Property, pla
Slide 16: Financial Summary; Cash Flow
Financial Summary ; Cash Flow Acquisition of Property, plant and equipment; （Million Yen） ex) New Osaka factory second construction Year on Year (+2,097) Investment control that assumed covid-19 risk (+387) (+1,264) (▲1,781) Return of Long-term debt Dividends paid Advance receipt increase that cause
Slide 17: Trends of ROE & ROA
Trends of ROE & ROA 14% Improvement of ROE and ROA ROE 11.8% 12% 11.4% 11.0% Return On Equity 11.3% 10.9% 9.7% 10% 8.6% 8.7% 8.6% 8.6% 8.5% 8% 7.1% 6.8% 6.8% 6.4% 6% 5.4% 5.3% 5.1% 4.9% 5.1% 4.7% 4.2% 4% ROA 2% Return On Asset 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FY © HOSOK
Slide 18: Trends of Investment, Depreciation, R&D Cost
Trends of Investment･Depreciation･R&D Cost Investment Plan for 2022 ・USA : Transfer and Expansion of Factory for Toll Processing ・Germany : Expansion of Factory etc 5,000 （Million yen） 3,774 3,299 Investment 2,532 1,996 1,740 1,182 1,393 1,607 Depreciation 1,102 1,105 1,003 R&D Cost 924 918 866 880
Slide 19: Stock Price and Dividend
Stock Price and Dividend Trading Volume (1000 stocks) 9,000 Trend of Stock Price and Turn Over 1,800 8,000 1,600 Stock Price (JPY) 7,000 Stock 1,400 Price 6,000 1,200 5,000 1,000 4,000 800 3,000 600 2,000 Trading 400 Volume 1,000 200 ※Five-to-one 0 0 combination of share 2005-Sep. 2006-Sep. 2007-Sep
Slide 20: Contents
Contents 1. Financial Summary 2. Mid-term Business Plan 3. Reference ＜参考資料＞ © HOSOKAWA MICRON CORP. All rights Reserved. 19/58
Slide 21: Targets in the 17th Mid-term Business Plan
Targets in the 17 th Mid-term Business Plan (hundred million yen) Consolidated 0perating Ordinary Net Income Net Sales attributable to Targets Profit Profit owners of parent FY2022 640 560 560 420 Risk Factors for Incomes ・Increase in expenses relating to recovery from Covid-19 such as travel expens
Slide 22: Targets in the 17th Mid-term Plan
Targets in the 17 th Mid-term Plan (hundred million yen) Consolidated Operating Ordinary Net Net Sales Targets Profit Profit Income FY2022 640 560 560 420 (hundred million yen) Consolidated Operating Ordinary Net Net Sales Targets Profit Profit Income FY2024 670 670 670 470 Exchange Rate US$（Dollar）
Slide 23: Dividend Policy
Dividend Policy ・Buildup of return of profits to the shareholders and stable dividend ・Clarification of policies for enhancement of companyʼs value Change of policies for return of profit from Dividend payout ratio to Total payout ratio. To achieve 30% of Total payout ratio, returning profits to sha
Slide 24: Cash Allocation
Cash Allocation ・Covering repayment of interest-bearing liability and return of profit to shareholders with operating C/F in the period of Mid-term business plan. ・Aiming 30% of Total payout ratio to achieve stable dividend. 400 For Interest-Bearing 9 Liability Acquiring for the next 3 years Acquire
Slide 25: Mid-Term Plan; Global Deployment
Mid-Term Plan ; Global Deployment Arrangement for Futures and Forcus Market Sustainability Sales Strategy Reuse of Carbon Black Formation of Sales Lithium-ion battery from Scrap Tires Bases in South America and Africa Substitute Meat and Cell culture medium Plant Protein for medical Sales promotion
Slide 26: Mid-term Plan; Domestic Expansion
Mid-term Plan ; Domestic Expansion 1 Powder Pharma & Lab Processing Division Division Strengthening of relationship with current customers Proposal of high value- Enlargement of project added technology such by including peripherals as protection & product isolation, particle design Penetration of b
Slide 27: Mid-term Plan; Domestic Expansion
Mid-term Plan ; Domestic Expansion 2 After-sales Material division division Driving renewal Preparing samples Increasing holders and development and documents to of official Furtherance open new market collaboration with qualifications Revaluation of quality of Shionogi Pharma Co.,Ltd.︓Development m
Slide 28: Improving Performance (Consolidation)
Improving Performance (Consolidation) 14 th Mid-term 15 th Mid-term 16 th Mid-term 17th Mid-term Plan for 3 years Plan for 3 years Plan for 3 years Plan for 3 years Challenge to be Global Standard Further development of Hosokawa Micron Hosokawa Micron Hosokawa Micron Group continues to Mountain Rang
Slide 29: Challenge to be Global Standard
Mid-term Plan; Basic Policy ■Group Basic Policy Challenge to be Global Standard Hosokawa Micron Group continues to develop superior products and provide technical services to achieve a dominant position by market acceptance. © HOSOKAWA MICRON CORP. All rights Reserved. 28/58
Slide 30: Policy & Measures
Policy & Measures © HOSOKAWA MICRON CORP. All rights Reserved. 29/58
Slide 31: Basic Measure for Mid-term Plan: Sales Network
Basic Measure 1 for Mid-term Plan ●Expansion of sales network by reinforcement of Group Corporation ・Expansion of sales to emerging market ・For Asian market : Enhancement of group collaboration & Rethinking of product & sales strategy © HOSOKAWA MICRON CORP. All rights Reserved. 30/58
Slide 32: Basic Measure for Mid-term Plan
Basic Measure 1 for Mid-term Plan Global Sales Expansion Japan/Asia ●Development of ●Intension of Cooperation emerging markets in with Overseas Sales Africa and others Companies. ●Formation of Sales ●Overseas further Bases in Latin America Expansion of After-sales. ●Expansion of Toll Processing Busi
Slide 33: Basic Measure for Mid-term Plan: DX
Basic Measure 2 for Mid-term Plan ●Promoting business by centralizing information by DX (Digital Transformation). ・Reconstruction of grand design of IT ・ Analyzing & Utilizing of accumulated information (market, application , customer, test data, etc.) ・Proposing a high-value added technology to cus
Slide 34: Basic Measure for Mid-term Plan
Basic Measure 2 for Mid-term Plan Global DX︓Driving of Digital Transformation Japan/Asia ●Cooperated R&D by ●Formation of ICT Digital International IoT Meeting Promotion Division and within Group Companies. Powerful advance of DX. ●Construction of e-Learning ●Grand Design of Mission- System and Educ
Slide 35: Customer Satisfaction by Digital Technology
Customer Satisfaction by Digital Technology ●Remote Service Real-Time Communication of Results of Test, Measurement and Commissioning. It is possible to remotely observe picture It is possible to remotely watch data images from electronic microscope. for commissioning of machine. © HOSOKAWA MICRON C
Slide 36: Sales of Smarting System of Production Line
Sales of Smarting System of Production Line ●Monitoring of Operating Condition and Accumulating of Operating Data. ・HOSOKAWA GEN4 RM HOSOKAWA GEN4 Service Scope of HOSOKAWA GEN4 RM © HOSOKAWA MICRON CORP. All rights Reserved. 35/58
Slide 37: Application oriented marketing & promoting
Basic Measure 3 for Mid-term Plan ●Application oriented marketing & promoting the development of corresponding products ・Market research by industries and materials, it will be applied to consider product development ・Reconstruction of global R&D and sales network (Construction of an specialization
Slide 38: Basic Measure 3 for Mid-term Plan
Basic Measure 3 for Mid-term Plan Global Marketing Japan/Asia ●Production Development ●Centralization of Project data by Application based on and Visualization of Market Marketing Strategy. Trend by MA. ●Collecting data of Market ●Formation of Pharma &Lab Trend by MA(Marketing Division / expanding A
Slide 39: Open & Challenge Mind
Basic Measure 4 for Mid-term Plan ●Open & Challenge Mind Work system reform & development of human resources ・ Creating a culture and reforming the system to support the challenge mind ・ Activating intra-group communication for the development of global and open-minded human resources © HOSOKAWA MIC
Slide 40: Basic Measure 4 for Mid-term Plan
Basic Measure 4 for Mid-term Plan Global Efforts for Human Japan/Asia Resource Development ●Career formation for future by ●Utilization of online using companyʼs internship training programs in and program. out of company. ●Development of human ●Digitalization of various resources able to act global
Slide 41: Basic Measure 5 for Mid-term Plan
Basic Measure 5 for Mid-term Plan ●Initiatives toward ESG/SDGs & further contribution to society and environmental preservation ・Contribution to circular economy by our product, toll processing, and aftersales business ・Improvement of QoL (Quality of Life) by proposing our products, materials and se
Slide 42: Basic Measure 5 for Mid-term Plan
Basic Measure 5 for Mid-term Plan Global Efforts for Sustainability ●Making Manufacturing Process Required for Ecology, Resource Efficiency and Occupational Safety and Health. ●Development of product and Accumulation of know-how aiming at reduction of energy and production loss. ●Supply of High func
Slide 43: Activity for SDGs
Activity for SDGs Target 7.3 Target 9.4 To greatly expand ratio for To improve sustainability through upgrading green power in worldʼs of efficiency for usage of resources and energy mix by 2030. increasing introduction of technologies and industry processes which are environmentally thoughtful by 2
Slide 44: Activity for SDGs
Activity for SDGs Target 3.9: By 2030, Target 11.6: By 2030, substantially reduce the reduce the adverse per number of deaths and capita environmental impact illnesses from hazardous of cities, including by paying chemicals and air, water and special attention to air soil pollution and quality and m
Slide 45: Activity for SDGs
Activity for SDGs Goal 9. Build resilient Goal 12. Ensure Goal 13. Take Goal 3. Ensure healthy infrastructure, promote sustainable urgent action to lives and promote well- inclusive and consumption and combat climate being for all at all ages sustainable production change and its industrialization a
Slide 46: Activity for SDGs
Activity for SDGs Target 3.9: By 2030, Target 11.6: By 2030, reduce Target 9.4: By 2030, upgrade infrastructure and substantially reduce the the adverse per capita retrofit industries to make them sustainable, number of deaths and environmental impact of cities, with increased resource-use efficienc
Slide 47: Contents
Contents 1. Financial Summary 2. Mid-term Business Plan 3. Reference © HOSOKAWA MICRON CORP. All rights Reserved. 46/58
Slide 48: Ratio of Booking by Market
FY2021 Composition Ratio of Booking by Application ※Excluding After Sales and Toll Processing 100% 17.8% Blown Film 21.3% 22.5% 27.6% 32.0% 31.6% Recycle 34.0% 37.2% 35.9% 33.3% Blown 4.8% 5.2% 42.0% Film 5.6% Mineral・Metal 10.0% Business 4.4% 9.6% 11.7% 3.8% 5.4% Plastics 3.7% 7.1% 3.0% 2.6% 5.0% 4
Slide 49: Composition Ratio of Booking by Business
FY2021 Composition Ratio of Booking by Business 100% 2.9% 3.1% 4.1% 3.9% 6.3% 4.3% 4.5% 5.1% 4.4% 3.7% 4.2% 4.3% 3.9% 3.8% 4.3% 10.4% 9.3% Others 3.6% 4.3% 4.4% Composition Ratio of Booking by Business 3.4% 3.9% Toll Processing 17.1% 17.9% 17.8% 16.2% 18.6% 16.2% 17.9% 17.6% 20.9% 15.9% After Sales
Slide 50: Corporate Mission
Corporate Mission Powder Technology contributes to the society. © HOSOKAWA MICRON CORP. All rights Reserved. 49/58
Slide 51: Corporate Vision
Corporate Vision Hosokawa Micron Group will always be the leading global company covering the mountain range of Powder Technologies. The Group will achieve peaks of excellence in the development and commercialization of advanced materials, process equipment and system engineering. © HOSOKAWA MICRON
Slide 52: Global Synergic Effect
Global Synergic Effect Management to maximize synergic effects of group companies Foundation: April, 1916 Stated Capital: 14,496 million yen Stock Market: Listed on the 1st Section of the Tokyo Stock Exchange Employees: Domestic operation 375, Group 1808, [as of 30, Sep. 2021] © HOSOKAWA MICRON CORP
Slide 53: Business Lineup
Business Lineup Evolution of total service businesses leading to improvement of customersʼ satisfaction Our customers are various company ,organization and individuals (cosmetics) around the world. © HOSOKAWA MICRON CORP. All rights Reserved. 52/58
Slide 54: Where powders are used?
Where powders are used ? Lithium ion battery Synthetic resin Water pipe : Poly Vinyl Chloride (PVC) Cathode︓Cobalt Based, Phosphate based Fluorine coating : Fluorocarbon resin (PTFE) Precursors of Cobalt Based Manganese PET bottle, Synthetic fiber, Industrial plastic : Anode : Graphite, Silicon Poly
Slide 55: Specific nature of powders
Specific nature of powders Gas “Powder” （If you blow it, it floats is a solid like as smoke） （If you press it, it solidify） Liquid （Flowing like as water） Handling is more complex than handling of gas or liquid -> Professional technology is required © HOSOKAWA MICRON CORP. All rights Reserved. 54/58
Slide 56: Various operations
Powder technologies Milling Drying Various operations Granulation Separation Blending Measurement Recovery of powders, Filtration © HOSOKAWA MICRON CORP. All rights Reserved. 55/58
Slide 57: Contribution to Circular Economy: Powder Processing Technology
Contribution to Circular Economy︓Powder Processing Technology Lithium-Ion Battery Neodymium magnet, ceramics Materials for manufacturing for Electric Vehicle bearing for motor, generator apparatus of silicon Micronizing and high functionality of raw materials particles Dry for Material of Fine milli
Slide 58: Blown Film and Related Technology
Blown Film and Related Technology The melted polymer is inflated with Inflation method air and molded into a bag shape. The translucent part is the film Offering the system (including Winder, Orientation, etc.) © HOSOKAWA MICRON CORP. All rights Reserved. 57/58
Slide 59: Contribution to Circular Economy: Blown Film
Contribution to Circular Economy : Blown Film (Cross section of film) Present high-functional film Multi materials (Polyethylene [PE],PET,PA, etc.) are layered to = Difficult separation -> Hard to recycle satisfy the performance MONO MATERIAL (Cross-sectional view of film) Functional PE (MDO film) S
Slide 60: No part 本資料の無断での複製・転載・転送等はご遠慮ください。 of this document must be reprinted or reproduced by any means
No part 本資料の無断での複製・転載・転送等はご遠慮ください。 of this document must be reprinted or reproduced by any means without permission from our company. © HOSOKAWA MICRON CORP. All rights Reserved.