Fuji Seal International, Inc. · TSE:7864
Fuji Seal International — Q3 FY2023 Earnings Presentation
29 slides from Fuji Seal International's earnings presentation, Feb 8, 2024
Slide 1: FY2023 Third Quarter Financial Results Supplementary Briefing Materials
FY2023 Third Quarter Financial Results Supplementary Briefing Materials Fuji Seal International, Inc. February 8, 2024 Copyright 2024 Fuji Seal Group
Slide 2: Table of Contents
Table of Contents 1. Financial Results for the Third Quarter of FY 2023 2. Shift to management based on cost of capital 3. Initiatives for Sustainable Growth • [Our Strengths] + [Solid Business Foundation] → [Sustainable Growth - Three Basic Strategies] • Progress in improving production efficiency
Slide 3: Key Points of FY2023 Q3 Financial Results and Progress toward Full-Year Forecasts
1. Key Points of FY2023 Q3 Financial Results and Progress toward Full-Year Earnings Forecasts Consolidated net sales increased, and Profit at each stage increased significantly as a result of the actions in each region and the impact of foreign exchange rates. Increase/Decrease Vs. Announcement FY
Slide 4: FY2023 Q3 Financial Results (1) Net Sales by Region
1. FY2023 Q3 Financial Results (1) Net Sales by Region Consolidated net sales increased 1.9% from the previous year on a local currency basis, impacted by Japan and the Americas. ～ FY2022 FY2022 FY2023 Year-on-year 3rd quarter 136,141 Excluding forex impact (Millions of yen) 3rd quarter 3rd quarte
Slide 5: FY2023 Q3 Financial Results (2) Net Sales by Segment by Region
1. FY2023 Q3 Financial Results (2) Net Sales by segment by Region Year-on-year change • Shrink Sleeve Label sales increased due to price revisions, FY2022 FY2023 Excluding forex (Millions of yen) 3rd quarter 3rd quarter Change Rate of change impact although volume was on a par with last year. Rate o
Slide 6: FY2023 Q3 Financial Results (3) Operating Profits by Region
1. FY2023 Q3 Financial Results (3) Operating Profits by Region Recovery progressed in all regions, and on a local currency basis, sales increased 44.9% YoY. FY2022 FY2023 Year-on-year • Increase due to the shift to a divisional structure in Excluding forex impact (Millions of yen) 3rd quarter 3rd
Slide 7: FY2023 Q3 Financial Results (4) Non-operating Income (Expenses), Ordinary Profits, and Net Profits
1. FY2023 Q3 Financial Results (4) Non-operating Income (Expenses), Ordinary Profits, and Net Profits Increase/Decrease 【Non-operating income】 FY2022 FY2023 (Millions of yen) 3rd quarter 3rd quarter Non-operating income increased mainly due to the following (Amount) (%) factors: Net sales 136,141 14
Slide 8: FY2023 Q3 Financial Results (5) B/S
1. FY2023 Q3 Financial Results (5) B/S (million-yen) Cash and deposits increased due to improved profitability. Also, working capital increased due to foreign exchange effects and increased revenues. Current assets: 122,511 Liabilities: 64,059 (+12,488 compared to the end of (+4,626 compared to th
Slide 9: Key Points of Revision of FY2023 Forecast
1. Key Points of Revision of FY2023 forecast Operating income were revised upward mainly due to better-than-expected progress in the effects of improvement measures in Japan and Europe. Ordinary Income is expected to rise further due to the above factors as well as the impact of foreign exchange
Slide 10: Revision of FY2023 Forecast by Region
1. Revision of FY2023 forecast by Region FY2023 FY2023 Increase/Decrease Vs. Announcement Net sales increased about 2.6% FY2022 Annouced full Full year (Millions of yen) Full year from the May forecast, mainly year (forecast) (Amount) (%) (Amount) (%) due to the impact of foreign Consolidated 184,03
Slide 11: Revision of Dividend Forecast
1. Revision of Dividend Forecast With the revised forecast, net income increased 45.2% from the May forecast. Accordingly, the dividend forecast has been significantly increased. The annual dividend was increased by about 30% from the initial forecast of 35 yen per year to 45 yen per year. Annual di
Slide 12: Table of Contents
Table of Contents 1. Financial Results for the Third Quarter of FY 2023 2. Shift to management based on cost of capital 3. Initiatives for Sustainable Growth • [Our Strengths] + [Solid Business Foundation] → [Sustainable Growth - Three Basic Strategies] • Progress in improving production efficiency
Slide 13: Shift to management based on cost of capital
Second Quarter Financial Results Explanatory materials reprinted 2. Shift to management based on cost of capital Issues Approaches to Challenges Our Specific Efforts Horizontal deployment of new model facories Expansion of domestic and overseas pharmaceutical Working capital Clearly articulate
Slide 14: Shift to management based on cost of capital: Review cost of equity
2. Shift to management based on cost of capital Review cost of equity Revised cost of shareholders' equity effective January 2024. Recognized as a level that should be above the higher range (6%-8%) than previously. Going forward, measures to improve Profitability are urgently needed to further impr
Slide 15: Review of business & product portfolios
2. Shift to management based on cost of capital Review of business & product portfolios Looking back over the past five years, the number of unprofitable businesses peaked in FY2021 and FY2022. In contrast, Operating margin declined sharply over the same period. In the current fiscal year, there are
Slide 16: Shareholder Return Policy
2. Shift to management based on cost of capital Shareholder Return Policy The company has traditionally provided stable shareholder returns, but starting from the next fiscal year, the company will consider either continuing the dividend payout ratio as before, changing to a dividend on equity (DOE)
Slide 17: Table of Contents
Table of Contents 1. Financial Results for the Third Quarter of FY 2023 2. Shift to management based on cost of capital 3. Initiatives for Sustainable Growth • [Our Strengths] + [Solid Business Foundation] → [Sustainable Growth - Three Basic Strategies] • Progress in improving production efficiency
Slide 18: Sustainable Business Growth
Second Quarter Financial Results Explanatory materials reprinted Our Strength + Solid business foundation →Sustainable growth strategy Creation of new business models that Sustainable Business Growth will lead to the next generation Human Environment Valued Customer Capital Expansion of Product Mark
Slide 19: Progress in improving production efficiency and portfolio review (Regional)
NEW Steadily reinforce the 4 existing business units 3. Progress in improving production efficiency and portfolio review (Regional) Japan the Americas Operating income improved by 15% YoY in the third quarter total with Decided to withdraw from other label business, narrow down the target area t
Slide 20: Progress in improving production efficiency and portfolio review (Biz units)
NEW Steadily reinforce the 4 existing business units 3. Progress in improving production efficiency and portfolio review (Biz units) Shrink Sleeve Label Pressure Sensitive Label The company aims to further improve profitability by increasing the Aim to expand sales by maximizing the strength of
Slide 21: Expanding sales of RecShrink (Recyclable Shrink Sleeve Label)
UPDATE. Steadily reinforce the 4 existing business units 3. Expanding sales of RecShrink™ (Recyclable Shrink Sleeve Label) RecShrink™ is a product that allows labels to be recycled as a valuable resource rather than waste. Label-to-bottle" recycling, in which labels and PET bottles are collected tog
Slide 22: Expansion of Business Domain - Pharmaceutical Business
UPDATE. Expansion of product markets and target areas 3. Expansion of Business Domain - Pharmaceutical Business In addition to focusing on “Pharmaceutical packaging CMO business" and “Line engineering business" in the pharmaceutical field, also focus on expansion of Pharmaceutical Labeler business
Slide 23: Counterfeit protection technology Deep IS
UPDATE. New for the next generation ® Business Model Creation 3. Counterfeit protection technology Deep IS What is Deep IS®? Expansion of product adoption results Revolutionary security system ▶Dr. Ricera Co. Different from conventional individual identification that can be identified by third Dee
Slide 24: Introduction of Employee Stock Ownership Plan (ESOP)
NEW human capital 3. Introduction of Employee Stock Ownership Plan (ESOP) Purpose and Aim of introducing ESOP This program is for further promote the human capital strategy to realize our Vision "Our Value to People and the Planet". (1) Further enhance benefit programs for employees that support our
Slide 25: Our Environmental Initiatives
UPDATE. Environment Details of the Fuji Seal Group's sustainability initiatives are 3. Our Environmental Initiatives available in our Integrated Report and on our website. In response to the growing momentum toward the realization of a Decarbonization Society, the Board of Directors passed a resolut
Slide 26: Gold rating in EcoVadis sustainability study
UPDATE. 3. Improvement of ESG survey evaluation (1) Gold rating in EcoVadis sustainability study Gold Rating is…. The main points on which our company was highly evaluated Out of the entire evaluated universe of more than 100,000 companies in more than 175 countries, Of the four evaluation themes of
Slide 27: Improvement of ESG survey evaluation (2)
UPDATE. 3. Improvement of ESG survey evaluation (2) Assessment of ESG survey 2022 2023 Continued to be selected as a constituent of the ESG Index MSCI 7.325 6.25625 • MSCI (WIN) Japan Equity Women's Activity Index (WIN, 368 stocks) from 2019 • FTSE FTSE 3.5 3.7 Blossom Japan Index (253 stocks) in 20
Slide 28: Our Vision
Our Vision Copyright 2024 Fuji Seal Group 28
Slide 29: 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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