Fuji Seal International, Inc. · TSE:7864
Fuji Seal International — Q2 FY2024 Earnings Presentation
34 slides from Fuji Seal International's earnings presentation, Nov 11, 2024
Slide 1: FY2024 Second Quarter Financial Results Supplementary Explanatory Materials
FY2024 Second Quarter Financial Results Supplementary Explanatory Materials Fuji Seal International, Inc. November 11, 2024 Copyright 2024 Fuji Seal Group
Slide 2: Table of Contents
Table of Contents 1. Financial Results for the Second Quarter of FY2024 ・Financial Results for the Second Quarter of FY2024 ・Dividends from surplus 2. Progress of Management Based on Cost of Capital 3. Initiatives to achieve FSG.30 ・Our Strengths + Solid Business Foundation → Sustainable Growth - Th
Slide 3: FY2024 Q2 Financial Results
1. FY2024 Q2 Financial Results Net sales and Profit at each stage increased compared to the same period of the previous year. Operating profit is 8.7%, 1.1points higher than the 7.6% announced for the full year. Increase/Decrease Vs. Announcement FY2024 FY2023 FY2024 Annouced full (Millions of y
Slide 4: FY2024 Q2 Financial Results (1) Net sales by region
1. FY2024 Q2 Financial Results (1) Net sales by region Net sales by region increased in all regions in both yen and local currency. ～ FY2023 FY2023 FY2024 Year-on-year 2nd quarter 94,852 Excluding forex impact (Millions of yen) 2nd quarter 2nd quarter change Japan 2,391 Increase(Decrease) Consolid
Slide 5: FY2024 Q2 Financial Results (2) Net sales by Segment by region
1. FY2024 Q2 Financial Results (2) Net sales by Segment by region Year-on-year change FY2023 FY2024 ●Shrink Sleeve Label sales increased due to higher sales volume, especially in beverages, as a Excluding forex impact (Millions of yen) 2nd quarter 2nd quarter Change Rate of change Rate of change res
Slide 6: FY2024 Q2 Financial Results (3) Operating Profit by Region
1. FY2024 Q2 Financial Results (3) Operating Profit by Region Consolidated operating profit increased in all regions in both yen and local currency Strong performance of core businesses and unprofitable businesses were reviewed through PF management. FY2023 FY2024 Year-on-year JAPAN Excluding fo
Slide 7: Non-operating Income (Expenses), Ordinary Income and Net income
1. FY2024 Q2 Financial Results (4) Non-operating Income（Expenses）, Ordinary Income and Net income Increase/Decrease 【Non-operating income】 FY2023 FY2024 (Millions of yen) 2nd quarter 2nd quarter The main reason for the year-on-year decrease was that foreign (Amount) (%) exchange gains of 1,310 milli
Slide 8: FY2024 2Q Financial Results (5) B/S
1.FY2024 2Q Financial Results (5) B/S (million-yen) Working capital increased due to foreign exchange effects. The reason of the loan decreased is that long-term loan was carried out in the Americas while short-term loan was repaid in the Japan region. Current assets: 129,492 (+12,428 compared to
Slide 9: Cash flows from investing activities and depreciation
1. FY2024 2Q Financial Results (6) Cash flows from investing activities and depreciation (million-yen) Since free cash flow turned positive in the same period of the previous year, operating cash flow and Cash flows from operating activities ・Profit before income taxes 8,389 free cash flow have in
Slide 10: Dividends from surplus
1. Dividends from surplus The interim dividend will be paid at the end of the second quarter as originally planned. Interim dividend 30 yen per share Basic Policy on Profit Distribution Total amount of dividends paid 1,644 million yen Investments for continuous growth (technology development, Paym
Slide 11: Table of Contents
Table of Contents 1. Financial Results for the Second Quarter of FY2024 ・Financial Results for the Second Quarter of FY2024 ・Dividends from surplus 2. Progress of Management Based on Cost of Capital 3. Initiatives to achieve FSG.30 ・Our Strengths + Solid Business Foundation → Sustainable Growth - Th
Slide 12: Financial Strategy: Improve ROE
12 Full Year 2023 Financial Results 2. Financial Strategy Improve ROE Supplemental Explanatory Material Reprinted ROE for the second quarter of the current fiscal year increased slightly compared to the end of the previous fiscal year. The effects of the management approach we have been working whic
Slide 13: Expand Future Profit (1) Focus on ROIC Management
2. Expand Future Profit (1) Focus on ROIC Management In order to ensure the achievement of double-digit % ROE, a KPI of FSG.30, we will thoroughly implement ROIC management in each region, which has already been introduced; by creating and visualizing a roadmap to 2030, we will level out the variati
Slide 14: Improve capital efficiency: Review business portfolio
2．Improve capital efficiency Review business portfolio Regarding the review of our business portfolio, we have withdrawn from two businesses, and one business turned profitable during this fiscal year. In addition, we have begun to consider reviewing businesses that may become unprofitable in the fu
Slide 15: Optimal Capital Structure
2．Optimal Capital Structure The equity ratio is expected to decline and the DE ratio to rise as the company raises funds for active investment in future growth. In addition, the total return ratio is expected to rise in FY2024 as a result of the acquisition of treasury stock announced in August 2024
Slide 16: Table of Contents
Table of Contents 1. Financial Results for the Second Quarter of FY2024 ・Financial Results for the Second Quarter of FY2024 ・Dividends from surplus 2. Progress of Management Based on Cost of Capital 3. Initiatives to achieve FSG.30 ・Our Strengths + Solid Business Foundation → Sustainable Growth - Th
Slide 17: FSG.30 - Growth Strategies
Full Year 2023 Financial Results Supplementary Briefing Material Reprinted 3．FSG.30 - Growth Strategies Further refining the strengths we have cultivated and our solid business foundation, we aim to achieve sustainable growth through three strategies Creation of new business models that will lead to
Slide 18: FSG.30 - Shrink Sleeve Label Business Strategy ① Targets
3. FSG.30 - Shrink Sleeve Label Business Strategy ① Targets As the core business of our group, we will continue to aim for further growth in the Shrink Sleeve Label business. (1USD=140Yen) ■ Project Target Values ■ Group Vision for Business $1,500 MM Global market leader (¥210 billion) In the Shrink
Slide 19: Shrink Sleeve Label Business Strategy ② Investment Plan
3.FSG.30 - Shrink Sleeve Label Business Strategy ② Investment Plan Expanding coverage in all regions to strengthen the foundation and grow the business, considering investment of $400MM (56 billion yen) by FY2030 with Shrink Sleeve Business. Japan Automation Europe Strengthen the Renewal of old mach
Slide 20: Shrink Sleeve Label Business Strategy ③ Development for Environment
3.FSG.30 - Shrink Sleeve Label Business Strategy ③ Development for Environment Development efforts to explore the ADD VALUE of Environment × Functionality × Economy Development Items Differentiation points/Advantages Target markets Recycling with Containers PET Containers (1) Rec Shrink+ PCR*1 compl
Slide 21: Reference: Plastic Bottle Market Forecast for 2026
3．Reference: Plastic Bottle Market Forecast for 2026 2022 2026 growth rate Number of plastic bottles Both in regions where we are present and in 8,150 9,360 115% (billion bottles) regions where we have not yet established a global total Population (billions) 79.8 82.6 104% [Legend] presence Number o
Slide 22: Shrink Sleeve Label Business Strategy ④ Strategy by Region
3. FSG.30 - Shrink Sleeve Label Business Strategy ④ Strategy by Region ■Change in the number of bottles per person in each region (2022 to 2026) Number of plastic bottles (billions) 300 【Shrink Sleeve Label Strategy by Region】 2022 China <Maintain and growth areas> 2026 ●Grows with Container Shrink
Slide 23: FSG.30 – Policy for Growth Investment
Full Year 2023 Financial Results Supplementary Briefing Material Reprinted 3. FSG.30 – Policy for Growth Investment In the previous mid-term plan, we thoroughly strengthened appropriate investment selection and risk management, and established a system to realize FSG.30 growth investments. We aim to
Slide 24: FSG.30 - Progress on Growth Investments
3.FSG.30 - Progress on Growth Investments Of the 45 billion yen investment over 3 years from 2024, approximately 50% of the investment has already been decided as of the end of Q2 2024. ■Image of investment allocation for 2024-26 Major investment projects that have already been decided 45 billion ye
Slide 25: Progress of Growth Investment: Japan
3.FSG.30 - Progress of Growth Investment 【JAPAN】 Fuji Seal East (New Yamagata Plant) Completion image and plant outline Concept ：Human- and environment-friendly plant Schedule ：Construction to begin in April 2025 Start production in October 2026 (Estimated) Other ： ●Expand production capacity to res
Slide 26: Progress of Growth Investment: ASEAN, Americas, Europe
3. FSG.30 - Progress of Growth Investment 【ASEAN, AMERICAS, EUROPE】 【ASEAN】 Bhakasa plant 【AMERICAS】 North Carolina Plant 【EUROPE】 Italy plant Bhakasa Industrial Trivium Corporate Center Rodigo Location (Bangkok, Thailand) (Hickory, NC) (MN, Italy) Site area Approx. 31,000 m2 25.3 acres (approx. 102
Slide 27: Growth strategy to expand soft pouch business
3. FSG.30 - Growth strategy to expand soft pouch business FSG.30 defines the establishment of the pouch business as our second core business, with three growth strategies. 6 Global Spouted Pouches Market 【New primary packaging field】 Bag-in-Box Conversion of Oil Cans Initiatives of the +6-7% CAGR gr
Slide 28: Environmental Strategy: Acquisition of SBT Certification
3. FSG.30 - Environmental Strategy: Acquisition of SBT Certification On September 3, 2024, Our group’s near-term target has been validated by the SBTi. The SBTi has classified the company’s scope 1 and 2 target ambition as in line with a 1.5°C trajectory. <FSG.30-Environmental KPI＞ Scope 1&2 ：Reduce
Slide 29: Environmental Strategy: Trends in GHG Emissions
3. FSG.30 - Environmental Strategy: Trends in GHG Emissions Fuji Seal Group has been working towards a target for GHG emissions per sales unit for 6 years from FY 2018 to FY 2023. In FY2023, the final year of the period, we achieved a 14.4% reduction compared to FY2017, far exceeding the 6% reductio
Slide 30: Environmental Strategy: Thailand Eco Factory Award 2024
3. FSG.30 - Environmental Strategy: Thailand Eco Factory Award 2024 Fuji Seal Packaging (Thailand) Co., Ltd., received the Eco-Factory Award 2024. On September 23, 2024, the Federation of Thai Industries (FTI), in collaboration with the Water and Environment Institute and the Industrial Estate Autho
Slide 31: HR Strategy: Vision and Principles for Human Capital
human capital 3. FSG.30 – HR Strategy: Vision and Principles for Human Capital “FSG believes that the essential resources of a company are talent, products, services, and capital. Products, services, and capital are created by talent. Therefore, employees are the key to our success and growth, and n
Slide 32: Human Resources Strategy
human capital 3.FSG.30 - Human Resorces Strategy Generate "Waku-Waku" - No growth without "Waku-Waku" - Actions With the aim of promoting the growth of the next generation of global leaders, participants will learn about strategic thinking, • Executive Leadership Program (ELP) organizational manag
Slide 33: Our Vision - To Be
Our Vision - To Be - Sustainable and profitable growth in the packaging industry Our Value to People and the Planet Our proactive impact to realize Generate "Waku-Waku" the Regenerative Society - No growth without "Waku-Waku" - Copyright 2024 Fuji Seal Group 33
Slide 34: Cautionary Statement
Cautionary Statement This report is intended to provide a better understanding of the Fuji Seal Group and is not intended as a recommendation for investment. This report includes earnings forecasts and business plans, which are based on certain assumptions in the economic environment and business po
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