Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — FY2022 Earnings Presentation
53 slides from Sekisui Chemical's earnings presentation, Apr 28, 2023
Slide 1: Presentation of Financial Results and the FY2023 Management Plan
SEKISUI CHEMICAL CO., LTD. For FY2022, ended March 31, 2023 Presentation of Financial Results and the FY2023 Management Plan Keita Kato President and CEO April 28, 2023
Slide 2: Results for FY2022 (forex rates)
Results for FY2022 FY2021 FY2022 Forex rate 1H 2H 1H 2H In-house ¥139/US$ assumptions ‐ ‐ - ¥144/€ Results ¥110/US$ ¥115/US$ ¥134/US$ ¥137/US$ (Avg. rate for each term) ¥131/€ ¥130/€ ¥139/€ ¥143/€ 1
Slide 3: Overview of FY2022 Results
Overview of FY2022 Results ▌ Increases in net sales and operating profit; increase in earnings due to the impact of foreign exchange gains on ordinary profit and absence of the impairment loss that impacted the bottom line in FY2021; record-high sales; record-high ordinary profit and bottom line ▌ N
Slide 4: FY2022 Results by Segment
FY2022 Results by Segment ▌ Increase in operating profit in all segments excluding the Housing Company; record-high UIEP and Medical operating profit ▌ While the Medical Business was in line with forecasts (Jan.), the HPP, Housing, and UIEP segments fell below forecasts owing to the substantial impa
Slide 5: 1H & 2H FY2022 Results by Segment
1H & 2H FY2022 Results by Segment ▌ Substantial increases in 1H HPP and UIEP operating profit owing mainly to improvements in selling prices; decrease in 2H HPP and Housing operating profit owing to the deterioration in global demand and housing market conditions; increases in UIEP and Medical opera
Slide 6: FY2022 Results Analysis
FY2022 Results Analysis ▌ Increases in both sales and profit through improvements in selling prices and efforts to secure margins, despite the substantial impact of the drop in global demand and sluggish construction market as well as the significant decline in sales volumes and product mix compared
Slide 7: Optimization of the Business Portfolio in Pursuit of Greater Synergies
<Reproduced> Optimization of the Business Portfolio in Pursuit of Greater Synergies ▌ <Background> As individual businesses have expanded their domains, some business activities have approached one another between the HPP and UIEP companies ▌ <Objective> Pursue synergies in marketing, manufacturing,
Slide 8: Optimization of the Business Portfolio (2): HPP Company
HPP Optimization of the Business Portfolio in Pursuit of Greater Synergies (2) Company ▌ Reorganize the Three Strategic Fields of the HPP Company (* including the rearrangement of certain products within the company) Electronics Electronics • Products for displays, electrical appliances, * Rearrange
Slide 9: Optimization of the Business Portfolio (3): UIEP Company
UIEP Optimization of the Business Portfolio in Pursuit of Greater Synergies (3) Company ▌ Reorganize the Three Strategic Fields of the UIEP Company (* including the rearrangement of certain products within the company) Piping and Infrastructure Pipe Systems • Pipe and joint materials, measures on •
Slide 10: FY2022 Results by Segment (After Portfolio Reorganization)
<Reference> FY2022 Results by Segment (After Portfolio Reorganization) ▌ Post business portfolio optimization quantitative data FY2022 FY2021 FY2022 Difference Difference Forecasts (Jan.) Net Operating Net Operating Net Operating Net Operating Net Operating (JPY billion) sales profit sales profit sa
Slide 11: FY2023 Plan
FY2023 Plan * Unless otherwise stated, figures in the following slides are based on the reorganization undertaken to optimize the business portfolio. FY2022 FY2023 Forex rate 1H 2H 1H 2H In-house ¥133/US$ ¥133/US$ assumptions ‐ ‐ ¥142/€ ¥142/€ Results ¥134/US$ ¥137/US$ (Avg. rate for ‐ ‐ each term)
Slide 12: FY2023 Plan: Overview and Returns to Shareholders
FY2023 Plan: Overview and Returns to Shareholders ▌ Second consecutive year of record-high net sales; target record highs in operating profit and the bottom line ▌ Dividend per share of ¥66, up ¥7 (fourteenth consecutive FY of dividend growth) ▌ Establish a limit for the acquisition of treasury shar
Slide 13: Outlook for Market Conditions
Outlook for Market Conditions ▌ Projecting a partial recovery in automobile production despite the continued impact of shortages in semiconductor supply; smartphones expected to gradually recover from the 2Q, despite a YoY decline up to the 1Q; continued downward trend in raw materials Number of Aut
Slide 14: FY2023 Plan by Segment
FY2023 Plan by Segment ▌ Projecting a partial recovery in global market conditions mainly from the 2H; forecasting increases in sales and operating profit in each segment; target full FY Groupwide, UIEP, and Medical record-high operating profit ▌ Promote new businesses and measures to strengthen mat
Slide 15: 1H & 2H FY2023 Plans by Segment
1H & 2H FY2023 Plans by Segment ▌ Secure an increase in operating profit for the 1H through efforts to secure margins in each segment; projecting a recovery in global market conditions mainly from the 2H; planning substantial increases in 2H sales and operating profit • HPP: Increase in margins owin
Slide 16: FY2023 Plan Analysis
FY2023 Plan Analysis ▌ In addition to projecting a partial recovery from sluggish global market conditions, focus on high-performance product sales growth; plans for a substantial increase in sales volumes and product mix; focus on securing margins in the 1H; target increases in sales and operating
Slide 17: Returns to Shareholders
Returns to Shareholders ▌ Plans for a fourteenth consecutive FY of dividend growth from FY2010. Also continue to actively provide returns to shareholders in FY2023. Returns to Shareholders Track Record Total dividend payment Acquisition of treasury shares Net profit attributable to owners of parent
Slide 18: Consolidated Performance
Consolidated Performance ▌ Work toward business portfolio reform, shift to further growth; target operating profit of ¥100 billion (JPY billion) EBITDA 119.9 119.3 126.7 133.4 137.7 137.3 133.2 116.6 137.6 142.1 153.0 1,312.0 1,242.5 1,242.5 1,157.9 1,142.7 1,129.3 Net sales 1,110.9 1,112.7 1,096.3
Slide 19: Financial Results FY2022
Financial Results FY2022 Tatsuya Nishida Executive Officer Head of Corporate Finance & Accounting Department 18
Slide 20: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2022 Mar. 31, 2023 Difference Consolidated Increased: 1 Subsidiary*1 subsidiaries 155 148 Decreased: 8 Subsidiaries*2 Affiliates Increased: 0 Subsidiaries 8 7 (Equity Method) Decreased: 1 Subsidiary*1 *1 Tochigi Sekisui Heim Co., Ltd.,
Slide 21: Summary of Profit and Loss
Summary of Profit and Loss + FY2021 FY2022 Difference (JPY billion) Net sales 1,157.9 1,242.5 +84.6 Gross profit 356.0 377.2 +21.3 Gross profit margin 30.7% 30.4% -0.4% Selling, general and administrative expenses 267.1 285.6 +18.5 Foreign exchange gains: +5.2 Operating profit 88.9 91.7 +2.8 Share o
Slide 22: Balance Sheets (Assets)
Balance Sheets (Assets) Mar.31 Inventories (B/S item) 2023 Difference Ready-built housing (products) 32.7 +7.0 Prepared land for subdivision Mar. 31, 2022 Mar. 31, 2023 Difference housing 64.2 +8.8 (JPY billion) Land under preparation (work in process) 10.0 -0.5 Cash and deposits 144.5 101.1 -43.5 H
Slide 23: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (JPY billion) Mar. 31, 2022 Mar. 31, 2023 Difference Non-interest-bearing liabilities 373.6 375.1 +1.5 Net profit: +69.3 Interest-bearing liabilities 122.6 120.5 -2.1 Dividends paid: -23.8 [Net interest-bearing liabilities] [-22.0] [19.4] [+41.4] Total liabi
Slide 24: Consolidated Cash Flows
Consolidated Cash Flows (JPY billion) FY2021 FY2022 Cash flows from operating activities 105.0 +71.5 Cash flows from investing activities 2.7 -59.4 Cash flows from financing activities -54.7 -62.9 Net increase in cash and cash equivalents 57.1 -48.5 Cash and cash equivalents at end of period 133.7 +
Slide 25: Depreciation, Amortization, Capital Expenditures and EBITDA
Depreciation, Amortization, Capital Expenditures and EBITDA Goodwill and other Depreciation*1 Capital expenditures EBITDA*3 amortization*2 Differ- Differ- Differ- Differ- FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 ence ence ence ence (JPY billion) Housing 9.9 11.1 +1.2 - 0.1 +0.1 13.0 1
Slide 26: Depreciation, Amortization, Capital Expenditures, R&D Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure FY2023 FY2022 Difference (JPY billion) Plan Depreciation 47.7 50.3 +2.6 Goodwill and other amortization 2.7 2.7 0 Capital expenditures 56.8 72.0 +15.2 EBITDA 142.1 153.0 +10.9 Research and development expenditure
Slide 27: FY2023 Plan: Overview and Returns to Shareholders
FY2023 Plan: Overview and Returns to Shareholders FY2023 FY2022 Difference Plan Net sales 1,242.5 1,312.0 +69.5 Operating profit 91.7 100.0 +8.3 Ordinary profit 104.2 103.0 -1.2 Profit attributable to owners of parent 69.3 70.0 +0.7 Dividend per share (JPY) 59 66 +7 Payout ratio 37.0% 40.3% +3.3% Ac
Slide 28: High Performance Plastics Company
High Performance Plastics Company Ikusuke Shimizu Company President 27
Slide 29: HPP Company: Performance Trends
HPP Performance Trends Company ▌ FY2022: Increases in both sales and profit, despite falling short of forecasts (Jan.) owing to the prolonged slump in Electronics-related demand ▌ FY2023: Expecting a partial recovery in market conditions; forecasting a substantial increase in profit owing to improve
Slide 30: HPP: FY2022 Results Analysis (Before Portfolio Reorganization)
HPP FY2022 Results Analysis (Before Portfolio Reorganization) Company ▌ Substantial decrease in sales volumes and product mix owing to the deterioration in 2H Electronics market conditions and a sluggish Mobility field, despite increases in sales and profit; results below forecasts (Jan.), despite c
Slide 31: HPP: Overview of FY2023 Plan
HPP Overview of FY2023 Plan Company ▌ Margin growth owing to continued improvements in selling prices; planning substantial increases in sales and profit based on expectations of a partial recovery in market conditions and an increase in sales volumes and product mix, despite higher fixed costs owin
Slide 32: HPP: Three Strategic Fields and Cost Innovation
Three Strategic Fields and Cost Innovation HPP Company (Before Portfolio Reorganization) ▌ FY2022: Decreases in sales and operating profit in the Electronics field owing to the deterioration in smartphone market conditions; increases in sales and profit in the Mobility field due to an increase in sa
Slide 33: HPP: Three Strategic Fields
HPP Three Strategic Fields Company ▌ Projecting a recovery in market conditions from the 2Q of FY2023; planning increases in sales and profit in each of the three strategic fields; Mobility field to continue driving growth owing to the expansion of high-performance product sales and continued improv
Slide 34: Housing Company
Housing Company Toshiyuki Kamiyoshi Company President 33
Slide 35: Housing Company: Performance Trends
Housing Performance Trends Company ▌ FY2022: Decrease in profit due to the surge in component costs, despite an increase in sales owing to the increase in unit prices, recovery in renovation demand, and Town and Community Development Business growth; results below forecasts (Jan.) owing to the great
Slide 36: Housing: FY2022 Results Analysis
Housing FY2022 Results Analysis Company ▌ Increase in sales owing to the increase in unit prices, recovery in renovation demand, and Town and Community Development Business growth; record-high Company net sales ▌ Decrease in operating profit owing a decline in the number of houses sold and significa
Slide 37: Housing: Overview of FY2023 Plan
Housing Overview of FY2023 Plan Company ▌ Anticipating a slump in new housing construction market conditions and the continued impact of surging component costs; projecting an improvement over the 2H; work to offset the projected decrease in the number of houses sold through improvements in profitab
Slide 38: Housing: KPIs by Business
Housing KPIs by Business Company Housing Business ▌ Downturn in consumer confidence owing to the slump in market conditions against the backdrop of high inflation; projecting a decrease in 1H orders owing to the prolonged nature of negotiations, despite an improvement in the number of visitors; anti
Slide 39: Urban Infrastructure & Environmental Products Company
Urban Infrastructure & Environmental Products Company Yoshiyuki Hirai Company President 38
Slide 40: UIEP Company: Performance Trends
UIEP Performance Trends Company ▌ FY2022: Increases in sales and profit owing to margins underpinned by improvements in selling prices, prioritized product sales growth, and higher overseas sales; record-high FY profit ▌ FY2023: Projecting a partial recovery in market conditions from the 2H; plannin
Slide 41: UIEP: FY2022 Results Analysis (Before Portfolio Reorganization)
UIEP FY2022 Results Analysis (Before Portfolio Reorganization) Company ▌ Domestic market conditions below expectations; increases in both sales and operating profit based on thoroughgoing efforts to secure margins • Japan: Secured margins, despite residential and non-residential market conditions fa
Slide 42: UIEP: Overview of FY2023 Plan
UIEP Overview of FY2023 Plan Company ▌ Projecting a modest recovery in 2H construction market conditions, despite the continued slump in the 1H; planning an increase in sales and profit on an increase in sales volumes and product mix and thoroughgoing efforts to maintain margins • Japan: Continue to
Slide 43: UIEP: Three Strategic Fields and Structural Reforms
Three Strategic Fields and Structural Reforms UIEP (Before Portfolio Reorganization) Company ▌ Increases in FY2022 sales and profit in each of the three strategic fields owing mainly to improvements in selling prices; certain prospect of structural reform Net sales in the Three Strategic Fields Adva
Slide 44: UIEP: Three Strategic Fields
UIEP Three Strategic Fields Company ▌ While working to maintain margins across each of the three strategic fields, projecting an increase in FY2023 sales owing to prioritized product and overseas sales growth Net sales in the Three Strategic Fields Building and Infrastructures Composite Materials Bu
Slide 45: Medical Business
Medical Business Futoshi Kamiwaki Director, Senior Managing Executive Officer Head of Business Strategy Department 44
Slide 46: Medical Business: Performance Trends
Medical Performance Trends Business ▌ FY2022: Increases in sales and profit owing to the recovery in diagnostics demand in Japan and overseas as well as contributions from new pharmaceutical ingredients ▌ FY2023: Projecting the continued recovery in diagnostics demand in Japan and overseas; focus ma
Slide 47: Medical: FY2022 Results Analysis
Medical FY2022 Results Analysis Business ▌ Results in line with forecasts (Jan.) owing to the recovery in diagnostics demand in Japan and overseas as well as contributions from increased influenza testing demand mainly in the U.S. and new pharmaceutical ingredients ▌ Start of new facility operations
Slide 48: Medical: Overview of FY2023 Plan
Medical Overview of FY2023 Plan Business ▌ Increases in sales and profit driven by continued recovery in diagnostics demand in Japan and overseas, blood coagulation reagent sales growth in China, and contributions from the Overseas Diagnostics Business, including new product sales growth in the U.S.
Slide 49: Medical: Overview by Business
Medical Overview by Business Business Net sales by Business and Overview of Progress Diagnostics (overseas) • FY2022: Blood coagulation reagent sales growth, despite the impact of Diagnostics (Japan) lockdowns in China, increase in influenza testing demand in the U.S.; difficult conditions in Asia •
Slide 50: Forward-looking statements
This slide presentation contains forward-looking statements. These statements are based on current expectations and beliefs. However, actual results may differ from those expressed or implied due to a number of factors and uncertainties such as changes in the global economy and our business, competi
Slide 51: Housing Company Results and Plan: Main Data
Housing Company Results and Plan * Including Tochigi Sekisui Heim Co., Ltd. newly consolidated in December 1. Main data in Housing business 5ｚｚｚｚｚｚｚｚｚｚｚｚｚ FY2022 FY2021 1H 2H Full Year 1H 2H Full Year Net sales (JPY billion) 260.2 277.2 537.4 249.8 265.4 515.2 Housing 177.2 186.4 363.6 171.6 183.1 3
Slide 52: Housing Company Results and Plan: Orders and Starts
Housing Company Results and Plan 2. Housing orders FY2023 Plan FY2022 FY2021 (Millions of yen) 1H 2H Full Year 1H 2H Full Year 1H 2H Full Year New construction ・Renovation Year-start Backlog 164,300 163,000 - 185,000 186,900 - 184,800 192,500 - Growth Rate -11% -13% - ±0% -3% - -10% -1% - New Orders
Slide 53: SEKISUI
SEKISUI Copyright® SEKISUI CHEMICAL CO., LTD.