Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q3 2020 Earnings Presentation
31 slides from Sekisui Chemical's earnings presentation, Jan 28, 2021
Slide 1: Presentation of Financial Results for the Third Quarter of Fiscal 2020
SEKISUI CHEMICAL CO., LTD. Presentation of Financial Results for the Third Quarter of Fiscal 2020, ending March 31, 2021 Futoshi Kamiwaki Director Senior Managing Executive Officer Head of Business Strategy Department January 28, 2021
Slide 2: Results for the 3Q and Forecasts for FY2020: Forex Rate Assumptions
Results for the ３Q and Forecasts for FY2020 FY2019 FY2020 Forex Rate 3Q 4Q 2H 3Q 4Q 2H 2H Plan (Oct.) Assumptions ¥106/US$ ¥109/US$ ¥108/US$ ¥106/US$ ¥104/US$ ¥105/US$ ¥106/US$ ¥118/€ ¥121/€ ¥120/€ ¥126/€ ¥126/€ ¥126/€ ¥126/€ Results ¥109/US$ ¥109/US$ ¥109/US$ ¥105/US$ (Avg. rate for ‐ ‐ each term)
Slide 3: Overview of 3Q FY2020 Results
Overview of 3Q FY2020 Results ∎Sales return to around the previous year’s level in the 3Q; shift to an increase in operating income ∎Both sales and operating income exceed plans ∎Increases in such items as foreign exchange loss (non-operating losses); posted an impairment loss on intangible non-curr
Slide 4: Reference: Results for 1H FY2020 (Retroactive Revision)
Reference: Results for 1H FY2020 (Retroactive Revision) ∎Amortization based on provisional goodwill up to the 1H retroactively revised after determining the intangible assets of SEKISUI AEROSPACE CORPORATION, which is included in the HPP Company 1H FY2020 1H FY2020 1H FY2019 Difference (Before Revis
Slide 5: Overview of 1-3Q FY2020 Results
Overview of 1-3Q FY2020 Results ∎Decrease in sales due to the significant impact of COVID-19 in the 1H; downturn in each level of profit 1-3Q FY2019 1-3Q FY2020 Difference (Billions of yen) Net Sales 823.3 756.4 -66.9 Operating Income 58.2 39.9 -18.3 Ordinary Income 59.5 33.8 -25.7 Net Income Attrib
Slide 6: 3Q FY2020 Results: Net Sales and Operating Income by Divisional Company
3Q FY2020 Results: Net Sales and Operating Income by Divisional Company ∎ Exceeded plans Groupwide in the 3Q; HPP Company and Medical business shift to an increase in profit • HPP: Recovery in market conditions in excess of expectations (mainly in the automobile field), progress in expanding sales o
Slide 7: Outlook for Market Conditions
Outlook for Market Conditions ∎ Despite a recovery in excess of expectations mainly in the automobile field in the 3Q, forecast slowdown in the 4Q as a result of further spread of the COVID-19 pandemic Number of Automobiles Manufactured (YoY) Housing・Visitors (YoY) Global trends exceed expectations
Slide 8: 2H FY2020 Forecasts by Divisional Company
2H FY2020 Forecasts: Net Sales and Operating Income by Divisional Company ∎Projected to essentially achieve Groupwide operating income plan ∎Upward revision in the HPP Company on the back of a recovery in market conditions and robust sales growth of high-value-added products; downward revision in th
Slide 9: 3Q & 4Q FY2020 Forecasts by Divisional Company
3Q & 4Q FY2020 Forecasts: Net Sales and Operating Income by Divisional Company ∎While factoring in the impact of further spread of the COVID-19 pandemic to a certain extent, expecting to secure an increase in profit in the 4Q 3Q FY2019 3Q FY2020 4Q FY2019 4Q FY2020 Difference Difference Results Resu
Slide 10: 2H FY2020 Forecasts: Net Sales and Operating Income
2H FY2020 Forecasts: Net Sales and Operating Income ∎By taking the initiative in implementing various measures (reduce fixed costs and other cost reductions) offset decreases in sales volumes and product mix, consolidated-basis change, and impact of foreign exchange ∎Offset the impact of further spr
Slide 11: FY2020 Forecasts by Divisional Company
FY2020 Forecasts: Net Sales and Operating Income by Divisional Company ∎Projected to achieve Groupwide operating income plan ∎Progress in adopting a selection and concentration approach toward R&D themes (other) as well as reducing Groupwide costs (eliminations or unallocatable accounts) FY2020 FY20
Slide 12: Overview of FY2020 Forecasts
Overview of FY2020 Forecasts ∎Projected to achieve operating income and bottom line plans ∎In the first year of the new Medium-term Management Plan “Drive2022,” progress in efforts to strengthen earning power as a growth platform from the next fiscal year FY2020 FY2020 FY2019 Difference Plan Differe
Slide 13: HPP Company: 2H FY2020 Forecasts
HPP HPP Company: 2H FY2020 Forecasts Company ∎ Recovery in market conditions exceed expectations, certain demand brought forward, and progress in expanding sales of high-value-added products in the 3Q; while factoring in the impact of further spread of the COVID-19 pandemic to a certain extent in th
Slide 14: HPP Company: Three Strategic Fields
HPP Three Strategic Fields Company ∎ Achieved increases in sales and profit in each of the three fields in the 3Q; despite the negative SEKISUI AEROSPACE CORPORATION* impact, expected to exceed plans in each of the three fields in the 2H *Newly Consolidated from 4Q FY2019 Net Sales in the Three Stra
Slide 15: Housing Company: 2H FY2020 Forecasts
Housing Company: 2H FY2020 Forecasts Housing Company ∎ Despite progress in line with order plans in the 3Q, projecting such trends as a delay in sales owing to the impact of COVID-19 in the 4Q; Results and Plan for Orders downward revision of 2H operating income plan Plan Plan Plan • Housing: Progre
Slide 16: Housing Company: New Housing Orders
New Housing Orders Housing Company ∎ Achieve the revised 2H orders plan by implementing three key measures aimed at generating growth (sales force, product strategies, and land strategies) Customer and Order Trends *%: YoY 2H Housing Order Revised Plan *%: YoY Visitors Results / Forecasts Number of
Slide 17: UIEP Company: 2H FY2020 Forecasts
UIEP UIEP Company: 2H FY2020 Forecasts Company ∎ Downward revision of the 2H operating income plan owing to the delayed recovery in domestic non-residential demand, overseas lockdowns, and the slowdown in aircraft sheet demand • Japan: Despite firm trends in the housing and public sectors, delayed r
Slide 18: UIEP Company: Three Strategic Fields
UIEP Three Strategic Fields Company ∎ Secure sales at roughly the same level as the previous year in the Piping and Infrastructure field; substantial decrease in sales in the Advanced Materials field due to deterioration in market conditions and the further spread of the COVID-19 pandemic Net Sales
Slide 19: Medical Business: 2H FY2020 Forecasts
Medical Business: 2H FY2020 Forecasts Medical Business ∎ Offset delays in the recovery of outpatient tests (Diagnostics (Japan)) through increased sales of COVID-19 diagnostic kits (Diagnostics (overseas)); also reduce fixed costs in excess of plans, projected to achieve the 2H operating income plan
Slide 20: Medical Business: Overview by Business
Overview by Business Medical Business ∎ Despite a decline in sales in the Diagnostics (Japan) business, sales projected to increase substantially in the Diagnostics (overseas) business while increasing in the Pharmaceutical Sciences business in the 2H Trends in Net Sales by Business and Overview of
Slide 21: Financial Results for the 3Q of FY2020
Financial Results for the 3Q of FY2020 20
Slide 22: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2020 Dec. 31, 2020 Difference Consolidated Increased: 2 Subsidiaries*1 Subsidiaries 163 164 Decreased: 1 Subsidiaries*2 Affiliates Increased: 0 Subsidiaries (Equity Method) 8 8 Decreased: 0 Subsidiaries *1 SEKISUI POLYMATECH EUROPE B.V
Slide 23: Summary of Profit and Loss
Summary of Profit and Loss 1-3Q FY2019 1-3Q FY2020 Difference (Billions of yen) Net Sales 823.3 756.4 -66.9 Gross Profit 266.3 235.9 -30.3 Gross Profit Margin 32.3% 31.2% -1.1% Selling, Gen. and Admin. Expenses 208.1 196.1 -12.0 Operating Income 58.2 39.9 -18.3 Equity in Earnings of Affiliates 1.6 1
Slide 24: Balance Sheets (Assets)
Balance Sheets (Assets) Dec. 31, Inventories (B/S item) 2020 Difference Ready-built housing (products) 25.3 +8.4 Prepared land for subdivision housing 54.8 +4.2 Mar. 31, 2020 Dec. 31, 2020 Difference Land under preparation (work in process) 19.0 +3.9 (Billions of yen) Housing under construction (wor
Slide 25: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (Billions of yen) Mar. 31, 2020 Dec. 31, 2020 Difference Net income Non-interest-bearing Liabilities 353.9 324.3 -29.6 +20.7 Interest-bearing Liabilities 117.7 175.9 +58.2 Dividends paid -21.0 (Net interest-bearing Liabilities) (40.8) (90.8) (+50.0) Retireme
Slide 26: Consolidated Cash Flows
Consolidated Cash Flows 1-3Q FY2019 1-3Q FY2020 (Billions of yen) Operating Cash Flows 46.7 27.0 Investing Cash Flows -83.7 -45.8 Financing Cash Flows 36.8 20.9 Net Increase in Cash and Cash Equivalents -0.9 3.8 Cash and Cash Equivalents at the End of Term 69.4 78.6 Free Cash Flow =Operating Cash Fl
Slide 27: Depreciation and Amortization, Capital Expenditures, R&D Expenditure
Depreciation and Amortization, Capital Expenditures, Research and Development Expenditure FY2020 (Billions of yen) 1-3Q FY2019 1-3Q FY2020 Difference FY2019 Difference Forecasts Depreciation 30.0 31.8 +1.8 40.6 43.0 +2.4 Goodwill and Other Amortization 3.0 4.8 +1.8 4.9 7.0 +2.1 Capital Expenditures
Slide 28: Intentionally Blank
Intentionally Blank SEKISUI
Slide 29: Housing Company Results and Plan
Housing Company Results and Plan 1. Main data in Housing 5 business FY2020 FY2019 FY2018 Full Year 1H 2H (plan) 1H 2H Full Year Full Year 3Q (plan) 3Q Net Sales (Billions of yen) 230.6 113.9 258.4 489.0 256.9 113.3 256.0 512.9 506.7 Housing 161.2 78.0 174.8 336.0 179.3 77.4 181.1 360.4 356.4 CONSOLI
Slide 30: Housing Company Results and Plan: Orders and Starts
Housing Company Results and Plan FY2020 FY2019 FY2018 2. Housing orders Full Year (Millions of yen) 1H 2H (plan) 1H 2H Full Year 1H 2H Full Year 3Q (plan) 3Q 3Q Year-start Backlog 205,400 194,500 194,500 - 219,500 217,320 217,320 - 206,900 213,900 213,900 - Growth Rate -6% -10% -10% - +6% +2% +2% -
Slide 31: Forward-looking statements notice
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