Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q1 2020 Earnings Presentation
28 slides from Sekisui Chemical's earnings presentation, Jul 30, 2020
Slide 1: Presentation of Financial Results for 1Q of FY2020
SEKISUI CHEMICAL CO., LTD. Presentation of Financial Results for the 1Q of FY2020, ending March 31, 2021 Futoshi Kamiwaki Director Senior Managing Executive Officer Head of Business Strategy Department 30 July, 2020 Copyright© SEKISUI CHEMICAL CO., LTD. All Rights Reserved.
Slide 2: Results for 1Q FY2020 and Forecasts for 1H FY2020
Results for 1Q FY2020 and Forecasts for 1H FY2020 FY2020 Forex Rate 1Q FY2019 2Q FY2019 1H FY2019 1Q FY2020 2Q FY2020 1H FY2020 (Initial Plan) Assumptions ¥110/US$ ¥108/US$ ¥109/US$ ¥110/US$ ¥107/US$ ¥108/US$ ¥110/US$ ¥125/€ ¥122/€ ¥124/€ ¥120/€ ¥121/€ ¥120/€ ¥120/€ Results ¥110/US$ ¥107/US$ ¥109/US
Slide 3: 1Q FY2020 Results
1Q FY2020 Results ∎Substantial decreases in sales as well as each level of FY2020 Plan Assumptions (Impact of COVID-19)* profit due to COVID-19 ・Current conditions (mid Apr.) to continue to June; despite a gradual recovery thereafter, significant impact on the 1H ∎Secured a profit at the operating a
Slide 4: 1Q FY2020 Results: Net Sales and Operating Income by Divisional Company
1Q FY2020 Results: Net Sales and Operating Income by Divisional Company ∎Despite substantial decreases in sales and profit in each segment, secured a profit at the operating income level; 1Q results generally in excess of plans • HPP: Despite a slump in the automobile market, results slightly higher
Slide 5: Outlook for Market Conditions
Outlook for Market Conditions ∎In overall terms, recovery from the impact of COVID-19 is expected to be slower than first assumed under the initial plan Number of Automobiles Manufactured (YoY) Housing・Visitors (YoY) While the 1Q is expected to be slightly better than expected after Despite a steady
Slide 6: 1H FY2020 Earnings Forecasts
1H FY2020 Earnings Forecasts ∎Net sales plan revised downward due to the prolonged impact of COVID-19 ∎Projected to secure profits at each level as planned due mainly to reductions in costs 1H FY2020 1H FY2020 Plan 1H FY2019 Difference (Apr. 2020) (Forecasts) (Billions of yen) Net Sales 556.5 488.0
Slide 7: 1H FY2020 Forecasts: Net Sales and Operating Income by Divisional Company
1H FY2020 Forecasts: Net Sales and Operating Income by Divisional Company ∎ The impact of COVID-19 to linger longer than anticipated; despite the downward revision of net sales plans, projected to achieve operating income plan due to cost reductions • HPP: Despite delays in a recovery in demand in t
Slide 8: 1H FY2020 Forecasts by Divisional Company (1Q & 2Q)
1H FY2020 Forecasts: Net Sales and Operating Income by Divisional Company (1Q & 2Q) ∎While 1Q results were in excess of expectations, recovery in the 2Q slower than planned; 1H operating income forecast to come in according to plans 2Q FY2020 1H FY2020 1Q FY2019 1Q FY2020 2Q FY2019 1H FY2019 (Foreca
Slide 9: 1H FY2020 Forecasts: Analysis
1H FY2020 Forecasts: Analysis ∎ While the impact of COVID-19 to linger longer than anticipated and sales volumes and the product mix projected to fall short of plans, offset through reductions in fixed costs ∎ While also anticipating a harsh business environment in the 2H, promote reductions in fixe
Slide 10: Intentionally Blank
Intentionally Blank Copyright© SEKISUI CHEMICAL CO., LTD. All Rights Reserved. 9
Slide 11: 1H FY2020 Forecasts: HPP Company
1H FY2020 Forecasts HPP Company ∎ COVID-19 projected to significantly impact the Mobility as well as Building and Infrastructure fields; substantial decrease in sales volumes and the product mix ∎ 1H operating income plan revised upward due mainly to growth in the Electronics (non-LCD) field, soft r
Slide 12: Three Strategic Fields: HPP Company
Three Strategic Fields HPP Company ∎Progress in line with plans in the Electronics field; the impact of COVID-19 on the Mobility as well as Building and Infrastructure fields to linger longer than anticipated Net Sales Trends and Progress in the Three Strategic Fields Mobility • While market conditi
Slide 13: 1H FY2020 Forecasts: Housing Company
1H FY2020 Forecasts Housing Company ∎ Despite the greater than anticipated impact of COVID-19 (incl. stoppages in construction), projected to achieve 1H operating income plan due to Results and Plan for Orders *%: YoY progress in reducing costs and fortifying the business structure Plan Plan Plan 1Q
Slide 14: Detached Houses: New Housing Orders
New Housing Orders Housing Company ∎ Work to achieve 1H order plans by continuing to strengthen the three growth strategies and initiatives Customer and Order Trends *%: YoY 1H Housing Order Plan *%: YoY Visitors Results / Forecasts Number of Orders by Type of Construction New Housing Orders (Units,
Slide 15: 1H FY2020 Forecasts: UIEP Company
1H FY2020 Forecasts UIEP Company ∎Impact of COVID-19 (stoppages in domestic construction and overseas lockdowns) greater than expected; downward revision of 1H operating income plan • Japan: Considerable impact from the drop in construction starts and construction stoppages that fall * Prioritized p
Slide 16: Three Strategic Fields: UIEP Company
Three Strategic Fields UIEP Company ∎ Despite decreases in sales in each field, gradual trend toward a recovery expected from the 2Q on the back of a resumption of economic activity ∎ Considerable impact from COVID-19; decreases in both prioritized product and overseas sales; progress in structural
Slide 17: 1H FY2020 Forecasts: Medical Business
1H FY2020 Forecasts Medical Business ∎ Greater than anticipated prolonged drop mainly in the number of outpatient tests due to COVID-19; downward revision of 1H operating income plan ∎ Steady progress in the Pharmaceutical Sciences business; implementing measures to curtail fixed costs Net Sales (Bi
Slide 18: 1H FY2020 Forecasts and etc.: Medical Business
1H FY2020 Forecasts and etc. Medical Business ∎ Greater than anticipated prolonged impact of COVID-19 on the Diagnostics business; steady progress in the Pharmaceutical Sciences business Trends in Net Sales by Business and Progress in 1H FY2020 Diagnostics (Japan) Diagnostics (overseas) • Great than
Slide 19: Financial Results for 1Q FY2020
Financial Results for 1Q FY2020 Copyright© SEKISUI CHEMICAL CO., LTD. All Rights Reserved. 18
Slide 20: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2020 June 30, 2020 Difference Consolidated Increased: 2 Subsidiaries*¹ Subsidiaries 163 165 Decreased: 0 Subsidiaries Affiliates Increased: 0 Subsidiaries (Equity Method) 8 8 Decreased: 0 Subsidiaries *1 SEKISUI POLYMATECH EUROPE B.V.,
Slide 21: Summary of Profit and Loss
Summary of Profit and Loss 1Q FY2019 1Q FY2020 Difference (Billions of yen) Net Sales 249.7 214.8 -34.9 Gross Profit 80.4 66.0 -14.4 Gross Profit Margin 32.2% 30.7% -1.5% Selling, Gen. and Admin. Expenses 69.6 64.7 -5.0 Operating Income 10.8 1.4 -9.5 Equity in Earnings of Affiliates 0.4 0.2 -0.2 Oth
Slide 22: Balance Sheets (Assets)
Balance Sheets (Assets) June 30, Inventories (B/S item) 2020 Difference Ready-built housing (products) 23.7 +6.8 Prepared land for subdivision housing 52.9 +2.3 Land under preparation Mar. 31, 2020 June 30, 2020 Difference (work in process) 17.4 +2.4 (Billions of yen) Housing under construction (wor
Slide 23: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (Billions of yen) Mar. 31, 2020 June 30, 2020 Difference Net income Non-interest-bearing Liabilities 350.4 325.2 -25.2 -0.5 Interest-bearing Liabilities 117.7 151.2 +33.5 Dividends paid -10.6 (Net interest-bearing Liabilities) (40.8) (65.6) (+24.7) Total Lia
Slide 24: Consolidated Cash Flows
Consolidated Cash Flows 1Q FY2019 1Q FY2020 (Billions of yen) Operating Cash Flows 8.3 -0.9 Investing Cash Flows -14.8 -13.6 Financing Cash Flows 8.5 21.8 Net Increase in Cash and Cash Equivalents 0.8 8.0 Cash and Cash Equivalents at the End of Term 71.0 82.9 Free Cash Flow =Operating Cash Flows + I
Slide 25: Depreciation and Amortization, Capital Expenditures, R&D Expenditure
Depreciation and Amortization, Capital Expenditures, Research and Development Expenditure FY2020 1Q FY2019 1Q FY2020 Difference FY2019 Difference (Billions of yen) (Plan) Depreciation 9.6 10.2 +0.6 40.6 45.4 +4.8 Goodwill and Other Amortization 1.0 1.8 +0.8 4.9 7.4 +2.5 Capital Expenditures 14.5 13.
Slide 26: Forward-looking statements
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 27: Housing Company Results and Plan
Housing Company Results and Plan 1. Main data in Housing business FY2020 FY2019 1H (Forecasts) 1H 2H 1Q 1Q Net Sales (Billions of yen) 96.1 235.0 107.4 256.9 256.0 Housing 65.7 163.7 72.9 179.3 181.1 CONSOLIDATED Renovation 17.0 43.0 21.6 50.5 46.6 Other 13.5 28.3 12.9 27.1 28.3 Real estate 11.2 23.
Slide 28: Housing Company Results and Plan: Housing orders
Housing Company Results and Plan 2. Housing orders FY2020 FY2019 FY2018 (Millions of yen) 1H (Forecasts) 1H 2H 1H 2H 1Q 1Q Year-start Backlog 205,400 ‐ 219,500 ‐ 217,320 206,900 213,900 Growth Rate -6% ‐ +6% ‐ +2% ±0% +3% New Orders 70,291 170,700 92,715 203,590 193,472 206,423 217,375 Growth Rate -