Shikoku Kasei Holdings Corporation · TSE:4099
Shikoku Kasei — Shikoku Chemicals — FY2021 Earnings Presentation
60 slides from Shikoku Kasei's earnings presentation, May 21, 2021
Slide 1: Financial Results Presentation for the FY2021
Financial Results Presentation for the FY2021 May 21, 2021 Code number：4099
Slide 2: Contents
Contents I. Corporate Profile (Business Structure) P3 II. Financial Results for the FY2021 P6 III. Forecast of Financial Results for the FY2022 P16 IV. Long-term Vision Challenge 1000 “STAGE 1” Progress Status P20 V. References P31 2
Slide 3: Corporate Profile (Business Structure)
Ⅰ．Corporate Profile (Business Structure)
Slide 4: Corporate Profile
Ⅰ－１．Corporate Profile （As of March 31, 2021） Company name SHIKOKU CHEMICALS CORPORATION Code number 4099 Industry：Chemicals Stock exchange Tokyo listing Incorporated October 10, 1947 Head Office Marugame, Kagawa Prefecture President and C.E.O. Naoto Tanaka Capital 6,867 million yen N
Slide 5: Business Structure
Ⅰ－２．Business Structure Two main business pillars, which are chemical products and housing materials. Inorganic Chemicals Chemicals Organic operations Chemicals Fine SHIKOKU Chemicals CHEMICALS CORPORATION Interior, exterior finishes and Housing paving materials Materials operations Exterior produc
Slide 6: Financial Results for the FY2021
Ⅱ．Financial Results for the FY2021
Slide 7: Overview
Ⅱ－１. Overview Due to the influence of the novel coronavirus, sales decreased by 1 3.8% compared to the previous term, and net profit increased by 2.7% compared to the previous term. Although the Chemicals operations showed recovery in the 2 second half of the year, sales decreased by 1.0% compared t
Slide 8: Consolidated Financial Results
Ⅱ－２．Consolidated Financial Results ■ Highlights of Financial Results for the FY2021 (Millions of yen) FY2020 FY2021 Increase of Changes Amount Percentage Amount Percentage amount Net sales 51,564 100.0% 49,590 100.0% ▲ 1,974 ▲3.8% Operating Income 7,848 15.2% 7,401 14.9% ▲ 447 ▲5.7% Ordinary income
Slide 9: Sales and Profit by Business Segments
Ⅱ－３. Sales and Profit by Business segments(consolidated) （Millions of yen） Net Sales FY2020 percentage FY2021 percentage Changes Inorganic Chemicals 11,913 23.1% 10,435 21.0% ▲ 12.4% Chemicals Organic Chemicals 10,146 19.7% 10,709 21.6% 5.5% operations Fine Chemicals 8,090 15.7% 8,705 17.6% 7.6% Sub
Slide 10: Overview of Sales by Segment (Chemical Products)
Ⅱ－４. Overview of Sales by Segment (Chemical Products) (Millions 15,000 of yen) FY2020 11,913 10,709 FY2021 10,146 10,435 10,000 8,705 8,090 5,000 0 Inorganic Chemicals Organic Chemicals Fine Chemicals Sales of insoluble sulfur, a material for radial tires, remained sluggish both in Japan and abroa
Slide 11: Overview of Sales by Segment (Housing Material Products)
Ⅱ－５. Overview of Sales by Segment (Housing Material Products) (Millions of yen) 20,000 18,954 17,285 15,000 10,000 FY2020 FY2021 5,000 1,665 1,475 0 Interior, exterior finishes Exterior Products and paving materials ◆ With the spread of COVID-19, there has been a strong sense of uncertainty over the
Slide 12: Analysis of Increase/Decrease in Chemical Segment Profit
Operating profit in previous term Decline in sales price Decrease in sales volume Increase in cost of sales Increase in cost of logistics Inorganic Chemicals Other Decline in sales price Increase in sales volume Decrease in cost of sales Increase in cost of logistics Organic Chemicals Other Increase
Slide 13: Analysis of Increase/Decrease in Housing Material Segment Profit
Operating profit in previous term increase in sales price Decrease in sales volume Increase in cost of sales and Paving Materials Interior, Exterior Finishes Increase in cost of logistics Other increase in sales price Ⅱ－７. Analysis of Increase/Decrease Decrease in sales volume in Housing Material Se
Slide 14: Consolidated Balance Sheets
Ⅱ－８. Consolidated Balance Sheets *The value in () indicates the ratio compared to March 2020 (Millions of yen) Liabilities Current assets 30,778 65,024 （+1,529） （+1,920） ・Increase in Long-term borrowings (+3,800） ・Increase in securities （+2,999） Total assets Net assets 76,566 107,344（+6,448） （+4,918
Slide 15: Consolidated Statements of Cash Flows
Ⅱ－９. Consolidated Statements of Cash Flows Cash flows from Cash flows from Cash flows from operating activities investing activities financing activities （百万円） （百万円） (Millions of yen) 8,000 0 7,385 7,411 4,000 3,875 2020/3 -1,000 6,000 3,000 -2,000 2021/3 -3,000 4,000 -2,999 2,000 -4,000 -5,00
Slide 16: Forecast of Financial Results for the FY2022
Ⅲ．Forecast of Financial Results for the FY2022
Slide 17: Full-year Financial Results Forecast (Consolidated)
Ⅲ－１. The full-year financial results forecast (Consolidated) （billions of yen） FY2022 Increase of FY2021 Changes （Forecast） amount Net sales 49.5 51.5 2.0 3.9% Operating Income 7.4 8.0 0.6 8.1% Ordinary income 7.9 8.3 0.4 3.8% Net income attributable to 5.7 6.0 0.3 4.2% owners of the parent *Exchang
Slide 18: Business Forecast by Segment
Ⅲ－2. Business Forecast by Segment (Consolidated) (Billions of yen) Increase of Net sales FY2021 FY2022 Changes amount Chemicals operations 29.8 30.4 0.6 2.1% Housing Materials 18.7 20.0 1.3 6.8% operations Increase of Segment Profit FY2021 FY2022 Changes amount Chemicals operations 5.6 6.2 0.6 9.7%
Slide 19: Capital Investment, Depreciation, R&D Expense
Ⅲ－3. Capital investment, Depreciation, R&D expense（Consolidated） (Millions of yen) 6,000 5,000 Capital investment 4,000 Depreciation 3,000 R&D expenses 2,000 1,000 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Forecast FY2022 (Millions of yen) FY2017 FY2018 FY2019 FY2020 FY2021 Forecast Capital invest
Slide 20: Long-term Vision Challenge 1000 STAGE 1 Progress Status
Ⅳ．Long-term Vision Challenge 1000 “STAGE 1” Progress Status
Slide 21: Outline of Challenge 1000
Ⅳ－１．Outline of Challenge 1000 Financial Pillars for Yonpou Yoshi (Contributions to goals Strategy Stakeholders) Net Sales 売上高 Business reform Customer 100 billions of policy 1,000億円 yen Companywide Employee reform policy 営業利益 Operating Income 150億円 15 billions of yen Proactive Shareholder investment
Slide 22: Financial Goals
Ⅳ－２．Financial goals 120.0 40.0% （ Billions of yen ） Net Sales 100.0 35.0% 100.0 （Consolidated） 5.0 New 95.0 business 30.0% 80.0 sales 80.0 2.5 Existing 25.0% 77.5 business sales 60.0 60.0 20.0% 52.8 51.6 49.5 51.5 Operating 15.0% 15.5% profit ratio 40.0 15.2% 15.2% 14.9% 15.0% 15.0% 12.5% 10.0% ROE
Slide 23: Pillar for Strategy (Companywide reform policy)
Ⅳ－３．Pillar for Strategy （Companywide reform policy） semiconductor process materials ◆Fine Chemicals Starting the operation of multipurpose plant The demand for semiconductors has been increasing because of IoT and autonomous cars. Needs for high-quality, high-function materials are growing among man
Slide 24: Pillar for Strategy (Companywide reform policy)
Ⅳ－４．Pillar for Strategy （Companywide reform policy） Creation of values ◆Establishment of Shikoku Chemicals quality policy It was stipulated to "increase the levels of not only products but also all activities." Shikoku Chemicals quality means the quality of all activities including products, service
Slide 25: Pillar for Strategy (Proactive investment)
Ⅳ－５．Pillar for Strategy（Proactive investment） 有機化成品of a new plant for chlorinated Chlorinated Isocyanurates at Kitajima Office, Tokushima Plant Construction ▶ Globally, the impact of transboundary movements of aquatic organisms in ballast water in concurrence with the traffic of ships on the ecosyst
Slide 26: Contribution to SDGs: Chemical operations
Ⅳ－６．Pillar for Strategy(Contribution to SDGs) Chemical • Fine Chemicals deals with water- operations soluble chemicals for printed wiring boards and can provide a human- and earth-friendly work environment. • Organic Chemicals contributes to the supply of safe water to people and conservation of mar
Slide 27: Contribution to SDGs: Housing Materials operations
Ⅳ－７．Pillar for Strategy(Contribution to SDGs) Housing Materials • Contributing to planning cities and communities where operations people can live securely and safely. => Decorative and Home Exterior Products provides the lineup of high-strength products and ensures high safety. => Interior Material
Slide 28: Pillar for Strategy (Contributions to Stakeholders)
Ⅳ－８． Pillar for Strategy Yonpou Yoshi (Contributions to Stakeholders) ◆ Provide new value by the execution of Pillar for Strategy Providing products and value which go one step ahead of what customers want such Customer as by searching for new businesses and expanding the field of existing businesse
Slide 29: Shareholders Return: Transitions in Dividend Payouts
Ⅳ－９．Shareholders return–Transitions in Dividend Payouts– （ Millions of yen ） Share Repurchases Total Dividends Total Payout Ratio（％） Payout Ratio（％） FY2018 FY2019 FY2020 FY2021 FY2022 （forecast） Dividends per share (annual) 22.0 22.0 24.0 24.0 24.0 29
Slide 30: Thank you for listening.
@® SHIKOKU Thank you for listening.
Slide 31: References
@® SHIKOKU V. References
Slide 32: History
Ⅴ－１. History Established in Marugame, Kagawa Prefecture with a capital of 2 million yen as a producer of carbon disulfide (=> Oct 1947 inorganic chemical products) No. 1 Tokushima Plant (now Tokushima Plant’s Yoshinari location) was constructed and began operations in the Oct 1957 production of sodi
Slide 33: History and Sales Trends
Ⅴ－２. History and Sales Trends Net Sales 1975 Moved to Tokyo Stock 1962 Exchange Section 1 Listed on Tokyo Stock Microetching solution 2008 Exchange Section 2 for PWBs 2004 Advanced Materials 1991 Glicoat-SMD 1947 1984 Insoluble Sulfur Establishment 1972 Exterior Products 1970 Wall materials 1968 Imi
Slide 34: Chemicals operations
@® SHIKOKU Chemicals operations
Slide 35: Inorganic Chemicals
Chemicals operations ①Inorganic Chemicals
Slide 36: Inorganic Chemicals
Ⅴ－３. Inorganic Chemicals [Major products] □ Carbon Disulfide …Essential materials for chemical fiber rayon □ Insoluble Sulfur …Rubber vulcanization agent (Millions of yen) □ Sodium Sulfate …Warm bath effect accelerator for Inorganic bath additives Chemicals Synthetic detergent cleaning aid 10,435(21
Slide 37: Insoluble Sulfur: Product Introduction
Ⅴ－４. Insoluble Sulfur-Product Introduction- □ Application: Vulcanizing agent for rubber □ Main customers: Domestic and overseas tire manufacturers □ The raw material rubber is hard, and it acquires the characteristic to extend and contract by adding sulfur and heating (vulcanizing). □ When normal su
Slide 38: Organic Chemicals
Chemical operations ②Organic Chemicals
Slide 39: Organic Chemicals
Ⅴ－５. Organic Chemicals (Millions of yen) [Major products] □ Chlorianted Isocyanurates（NEO-CHLOR） FY2021 … for swimming pool and septic tank Consolidated disinfectants Net sales □ HIPOLKA … Wastewater/sludge treatment 49,590 agent Organic Chemicals 10,709(21.6%) 39
Slide 40: Chlorinated Isocyanurates: Product Introduction
Ⅴ－６. Chlorinated Isocyanurates-Product Introduction- □ Applications: Sanitizing agent for swimming pools and septic tanks, chlorine-based sanitizing agent for spas and home baths □ Main customers: Swimming pool operators, schools, general consumers (U.S.) □ Main component: Chlorinated Isocyanurates
Slide 41: Fine Chemicals
Chemical operations ③Fine Chemicals
Slide 42: Fine Chemicals
Ⅴ－７. Fine Chemicals (Millions of yen) FY2021 Consolidated Net sales 49,590 [Major products] Fine Chemicals □ Glicoat-SMD… Water-soluble rust preventive agent for 8,705(17.6%) printed wiring boards (OSP) □ Advanced & Specialty Chemicals… Imidazoles (curing agent of epoxy resin) Resin modifier, raw ma
Slide 43: OSP: Organic Solderability Preservative Product Introduction
Ⅴ－８. OSP: Organic Solderability Preservative-Product Introduction- □ Application: Water-soluble rust preventive agent for printed wiring boards OSP: Organic Solderability Preservative] □ Main customers: Printed wiring board manufacturers all over the world □ By forming an organic coating on the copp
Slide 44: Advanced & Specialty Chemicals: Imidazoles
Ⅴ－９. Advanced & Specialty Chemicals-Imidazoles □ Application: Curing agent and curing accelerator for epoxy resin*, raw material for drugs □ Main customers: Resin material manufacturers and drug manufacturers □ Imidazole is used in a wide range of applications, including curing agent for epoxy resin
Slide 45: Advanced & Specialty Chemicals: Imidazoles
Ⅴ－１０. Advanced & Specialty Chemicals-Imidazoles Engine CPU Car navigation system [Laminated plate, sealing agent, [Liquid crystal sealing material] solder resist ink] Engine hood [CFRP (reinforced carbon fiber)] Frame structure [Adhesive for structures] Tires [Tire grip improving agent] Electric mot
Slide 46: Focused Products (Printed Wiring Boards Agents)
Ⅴ－１１. Focused Products (Printed Wiring Boards Agents) GliCAP® Adhesion improving agent between copper circuit and resin on printed wiring boards. Conventionally, unevenness was formed on surface by roughening (etching) the copper so that the adhesion to resin was improved by “mechanical bondin
Slide 47: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１２. Focused Products (Advanced & Specialty Chemicals) Advanced materials Advanced materials at our company refer to the products (compounds) that can improve various functions by blending them as materials for electronic parts such as semiconductors that are used in electronic devices, etc.
Slide 48: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１３. Focused Products (Advanced & Specialty Chemicals) A new isocyanuric acid derivatives We developed this material by utilizing isocyanuric acid synthesis technology we have accumulated. It has excellent heat resistance, light resistance, and transparency, and is used as a modifier for seal
Slide 49: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１４. Focused Products (Advanced & Specialty Chemicals) Glycoluril derivatives A multi-functional resin modifier with transparency and high heat resistance. It has 4 functional groups and is expected to form hardened materials with a high crosslinking density. ■ Glycoluril derivatives Thiol gr
Slide 50: Housing Materials operations
Housing Materials operations
Slide 51: Interior, Exterior Finishes and Paving Materials
Housing Materials operations ④Interior, Exterior Finishes and Paving Materials
Slide 52: Interior, Exterior Finishes and Paving Materials
Ⅴ－１５. Interior, Exterior Finishes and Paving Materials [Major products] (Millions of yen) □ Interior materials (silicate walls, natural material walls) Plastered wall materials with moisture control function and harmful FY2021 chemical substance and daily odor Consolidated adsorption/decomposition f
Slide 53: Interior, Exterior Finishes and Paving Materials
Ⅴ－１６. Interior, Exterior Finishes and Paving Materials Interior materials The business started with "JULUX," the first industrial product for plastered wall material in Japan, which was developed for in-house chemical glue CMC application. It is difficult to handle Juraku wall, traditional Jap
Slide 54: Interior, Exterior Finishes and Paving Materials
Ⅴ－１７. Interior, Exterior Finishes and Paving Materials Exterior and paving materials We also expand our business to “exterior” to cover the outside of buildings and exterior parts, and “paving” to cover the surfaces of roads and approaches. Our exterior materials come in wide variations includ
Slide 55: Exterior Products
Housing Materials operations ⑤Exterior Products
Slide 56: Exterior Products
Ⅴ－１８. Exterior Products (Millions of yen) [Major products] Home Exterior Products □ Gates, fences, car ports, and decks Exterior □ Accordion gates First product Products FY2021 (expansion type gates) in industry 17,285(34.9％) Consolidated □ Art Wall which was Net sales developed by 49,590 (aluminum
Slide 57: Home Exterior Products
Ⅴ－１９. Home Exterior Products In 1971, when the motorization was rapidly progressing, we devised an “accordion gate,” which can be easily opened and closed with an expansion mechanism, and which can respond to the residential situation with limited space in Japan, and it became the standard for gat
Slide 58: Decorative Exterior Products
Ⅴ－２０. Decorative Exterior Products ■ Pathway shelter ■ Bicycle parking space ■ High strength car stops ■ Garbage accumulation storage ） 58
Slide 59: Efforts in Housing Materials Business
Ⅴ－２１．Efforts in Housing Materials Business We are adding to the lineup of high-strength exterior products that are resistant to wind and snow and promoting sales expansion, based on the fact that large-scale disasters such as typhoons have been recently happening one after another over the country
Slide 60: Contact Information
Contact Information Corporate planning department, Shikoku Chemicals Corporation TEL：+81-(0)877-21-4119 FAX：+81-(0)877-22-0411 www.shikoku.co.jp [Note regarding this document] Forward-looking statements or projections mentioned in this document, including earnings are based on currently available in