Asahi Yukizai Corporation · TSE:4216
Asahi Yukizai — Investor Presentation (August 2023)
55 slides from Asahi Yukizai's investor presentation, Aug 8, 2023
Slide 1: First & No. 1 Niche Top Company
First & No. 1 Niche Top Company Asahi Yukizai Corporation Securities Code; 4216 (Chemical) President & Representative Director Kazuya Nakano August 8, 2023 Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 2: What is Organic Material?
What is Organic Material? What is Organic Material? Copyright(c) ASAHI YUKIZAI CORPORATION 1 Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216
Slide 3: Keyword is Resin
Keyword is “Resin" KEYWORD Resin Copyright(c) ASAHI YUKIZAI CORPORATION 2 Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216
Slide 4: Synthesis, Commercialization, Implementation
Synthesis Commercialization Implementation (Engineering)） Asahi Yukizai Corp. is a rare company operating from upstream to downstream. Copyright(c) ASAHI YUKIZAI CORPORATION 3 Securities Code 4216
Slide 5: Table of Contents
Table of Contents 1 Corporate Profile P5‒ 4 Midterm Business Plan P34‒ • Business overview • Toward FY2025‒2030 GNT • History of the Asahi Yukizai Group • Major Measures for Business Growth • Global Network of the Asahi Yukizai Group • Investment and Financial Strategies /Shareholder • Selected as o
Slide 6: 1 Corporate Profile
1 Corporate Profile Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 7: Business overview: Three Business Segments
Business overview Asahi Yukizai Group's Three Business Segments Water Treatment & Natural Thermoplastic Resources Development Valves (Water treatment & Natural Resources Development Divisions) (Valve & Piping Systems Divisions) 10% FY2022 Sales 77.1 billion yen 63% Resin Materials 27 (Resin Division
Slide 8: 1945 Started with Aircraft Parts
1945 Started with Aircraft Parts. Manufactured aircraft parts with wood and resin (veneer) instead of scarce metal materials. Founded as Nitchitsu Kozai Kogyo Co., Ltd. Copyright(c) ASAHI YUKIZAI CORPORATION 7 Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216
Slide 9: 1950 Started the Resin Business
1950 Started the Resin Business. Fully developed plastic molding materials, starting with use in the housing of black telephones that were becoming popular in the postwar period. Copyright(c) ASAHI YUKIZAI CORPORATION 8 Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216
Slide 10: 1956 Launched the World's First Thermoplastic Valves
1956 Launched the World's First Thermoplastic Valves. The world's first thermoplastic molding. Released the "ASAHIAV" series of plastic valves. Copyright(c) ASAHI YUKIZAI CORPORATION 9 Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216
Slide 11: Photoresist Resins and Small Precision Valves
1990 Photoresist Resins 2000 Small Precision Valves for Semiconductor Manufacturing Equipment Copyright(c) ASAHI YUKIZAI CORPORATION 10 10 Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216
Slide 12: Global Network of the Asahi Yukizai Group
Global Network of the Asahi Yukizai Group Germany South Korea U.S.A. India China Dubai Mexico Singapore Overseas sales ratio FY2020 FY2021 FY2022 Valve & Piping South Systems Divisions 30% 36% 45% Africa Valve Systems Divisions& Piping Resin Divisions Water Treatment & Natural Resources Resin Divisi
Slide 13: Selected as Global Niche Top Company
Selected as one of the "2020 Top 100 Global Niche Companies Selections" (Materials/Chemical Category) by the Ministry of Economy, Trade and Industry. Copyright(c) ASAHI YUKIZAI CORPORATION 12 12 Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216
Slide 14: First & No. 1 Niche Top Company
First & No. 1 Niche Top Company Copyright(c) ASAHI YUKIZAI CORPORATION 13 Securities Code 4216
Slide 15: 2 Business Outline
2 Business Outline Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 16: 2-1 Valve & Piping Systems Divisions
48.5 billion yen FY2022 Total Sales 77.1 Core Divisions billion yen 2-1 Valve & Piping Systems Divisions Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 17: Strengths of Thermoplastic
Strengths of Thermoplastic Demonstrate Metal valves are more common, but resin valves work well in a Strengths in situation where corrosion or metal elution is undesirable. Special Fields Steelmaking, Chemical, Nonferrous Metals Aquariums, Fishery を Agriculture Semiconductors Copyright(c) ASAHI YUKI
Slide 18: Dymatrix Series for Semiconductor Manufacturing Equipment
Dymatrix Series Specialized for Semiconductor Manufacturing Equipment Dymatrix Used in the pre-process of semiconductor manufacturing Applications and Characteristics (in the cleaning equipment and CMP equipment). "Dymatrix" "FALCONICS" Used in the cleaning Used in the CMP process. process. * CMP: W
Slide 19: 2-2 Electronic Materials, Insulating and Foundry Materials
FY2022 20.6 billion yen Total Sales 77.1 billion yen Resin Divisions 2-2 Electronic Materials, Growing Particularly for Semiconductors On-site Foaming Insulating Materials and Foundry Materials Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 20: About Electronic Materials
About Electronic materials Use of Electronic Photoresist materials and underlying substrates for legacy Materials and advanced semiconductors Legacy Semiconductors Advanced Semiconductors Analog semiconductors, Power Memory, Micro, Logic semiconductors, Opt (LED) semiconductors, Sensors 3D Games Sma
Slide 21: Electrical Materials Second Plant Construction / Nantong Expansion
Electrical Materials Second Plant Construction / Nantong Electrical Materials Plant Facility Expansion Electrical Materials Second Plant: Manufacture Resist Materials for Legacy and Advanced Semiconductors. Outline of Plant Construction: Location: In Aichi Plant Start of Construction: December 202
Slide 22: On-Site Foaming Insulating Materials
Foaming Materials Business: "On-Site Foaming Insulating Materials" Characteristics of Used for condominiums, commercial facilities, warehouses, refrigerators, etc. “On-Site Foaming Installable in parts with a complex shape, enabling efficient and airtight heat Insulating Materials" insulation work.
Slide 23: About the foundry materials business
About the foundry materials business Copyright(c) ASAHI YUKIZAI CORPORATION 22 22 Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216
Slide 24: About the Foundry Materials Business
About the Foundry Materials Business Use of Foundry Used in the casting process for engine parts, etc. Material Products Established plants in the areas of active automotive-related manufacturers. Resin Coated Sand (RCS) Sand Mold Cast Product Resin Engine Sand Disc Brake India China Mexico Hiroshim
Slide 25: Impact of EV Conversion
Impact of EV Conversion Progress in the Shift A new opportunity for our company. to EVs in Automobiles Differentiation through thigh value-added products New Demand Continued Demand Brake and Drive Components Engine Parts Thinner, lighter and more complex than ever before Battery Cover Advanced tech
Slide 26: 2-3 Water Treatment & Natural Resources Development Divisions
80 billion yen FY2022 Total Sales 77.1 billion yen 2-3 Water Treatment & Natural Resources Development Divisions that contributes to the environment Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 27: History of DRICO
History of DRICO 2013 2019 2016 Started business in Became a subsidiary of Asahi Yukizai Started the China. Corporation. Started as the Water Treatment & Natural environmental Resources Development Divisions. chemicals business. 2000 1952 Started the recycled water business. Succeeded in steam well
Slide 28: Drilling Works Map and Recycled Water Facilities
Number of Drilling Works for Hot Springs- No.1 in Japan, Number of Recycled Water Treatment Facilities Constructed in Large Commercial Buildings - No.1 in Japan Drilling Works Map Recycled Water Treatment Facilities: Major Projects ★Hot Spring Wells about 400 Haneda Airport ★Wells for Geothermal abo
Slide 29: Entry into Biogas Power Generation
Entry into Biogas Power Generation Contribute to a Recycling-Oriented Society through Wastewater Treatment Technology Methane [2] Power generation equipment (installation) Electricity, gas, heat Food residues, feces and urine, etc. Fermentation [3] Wastewater residues treatment equipment (design and
Slide 30: 3 FY2023 Forecast, etc.
3 FY2023 Forecast, etc. Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 31: Full-year Profit/Loss Estimate
Full- year Profit/Loss Estimate Sales:100 million yen Operating profit Net income for the term :100 million yen 1,000 200 840 800 771 160 647 119 120 600 561 566 120 536 502 415 420 400 66 94 80 80 200 40 48 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Copyright(c) ASAHI YUKIZAI CORPORATION esti
Slide 32: About dividends
About dividends Year-end dividend per share (yen) 80 Interim dividend per share (yen) 70 60 40 50 50 50 45 40 35 30 25 25 25 25 15 40 25 25 25 25 30 15 20 FY 2016 2017 2018 2019 2020 2021 2022 2023 forecast Dividend payout 52.7% 31.0% 24.5% 30.5% 34.3% 24.1% 14.2% 19.2% ratio Copyright(c) ASAHI YUKI
Slide 33: Stock price trends
Stock price trends Stock price: yen August 3, 2023 5,500 Stock price (closing price) 4,555 yen 5,000 4,500 4,000 3,500 3,000 2,500 2,000 2022/8/1 2022/9/1 2022/10/1 2022/11/1 2022/12/1 2023/1/1 2023/2/1 2023/3/1 2023/4/1 2023/5/1 2023/6/1 2023/7/1 2023/8/1 Dividend PER PBR yield * (Company forecast)
Slide 34: Profit/loss for the first quarter
Profit/loss for the first quarter Unit: Mill. yen Consolidated FY2022 FY2023 YoY comparison basis April-June April-June Increase/ Increase/ Decrease Decrease ratio Sales 16,764 21,037 +4,273 +25.5% Operating profit 2,068 4,074 +2,006 +97.0% Ordinary profit 2,423 4,353 +1,930 +79.6% Quarterly net inc
Slide 35: 4 Midterm Business Plan
4 Midterm Business Plan Revised in May 2023 Revised - To become a Great Niche Top company that keeps making a real “difference” - Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 36: Toward FY2025-2030 GNT
Toward FY2025‒2030 GNT Sales: Not including M&A 100 million yen 1,250 250 Operating profit : Sales EBITDA : Operating profit GNT2025 1,100 : 100 million yen : EBITDA 1,000 200 870 771 750 150 647 160 141 140 561 566 536 500 86 120 100 61 64 119 55 44 CAGR 5% 250 42 34 66 50 (Sales: 2025→2030) CAGR 1
Slide 37: Major Measures for Business Growth
Major Measures for Business Growth Divisions Measures progressed New measures Overseas/semiconductor Overseas/semiconductor market market Valve & Piping Systems Started pipe production in China Smarter operation of Nobeoka Divisions Constructed a new plant in the U.S. Manufacturing Plant Overseas sa
Slide 38: Investment and Financial Strategies / Shareholder Return Policy
Investment and Financial Strategies / Shareholder Return Policy Previously announced investment plan Valve & amounted to 22 billion yen M&A Ordinary Piping Systems framework Divisions (Ordinary) 26% Revised investment plan amounts to 42 Resin billion yen, an increase of 20 billion yen. Divisions Inv
Slide 39: 5 Supplementary data
5 Supplementary data ・Corporate Information ・Business description map (Active locations) Valve & Piping Systems Divisions Resin Divisions Water Treatment & Natural Resources Development Divisions ・ESG Activities ・Relationship between business activities and SDGs ・Financial data (FY2013‒FY2022) Copyr
Slide 40: Corporate Information
Corporate Information ■ Trade name ASAHI YUKIZAI CORPORATION ■ Nobeoka Head Office 2-5955 Nakanose-cho, Nobeoka-city, Miyazaki, Japan ■ Tokyo Head Office 21st Floor, Ueno Frontier Tower 3-24-6 Ueno, Taito-ku, Tokyo, Japan ■ Establishment March 12, 1945 ■ Capital 5,000,100,000 yen ■ Stock listing Pri
Slide 41: Products of Valve & Piping Systems Divisions
Products of Valve & Piping Systems Divisions are used as shown below. Agriculture Chemical Semiconductor Plants Plants Water Supply and Sewerage Ironworks Systems Aquariums Non-Ferrous Refining Plants Breeding Farms • Chemical Plants • In the Manufacturing • Semiconductor Plants Equipment of • Ironw
Slide 42: Products of Resin Divisions
Products of Resin Divisions are used as shown below. Heat Insulating LED Semiconductors Material LCD Panel Tire parts Transmission • Provide the materials needed to manufacture products. Brake Pad • Our products do not remain in form. Disc Brake Engine Copyright(c) ASAHI YUKIZAI CORPORATION 41 Secur
Slide 43: Products of Water Treatment & Natural Resources Divisions
Products of Water Treatment & Natural Resources Development Divisions are used as shown below. Geothermal Power Plants Industrial Wastewater Treatment Facilities Hot Spring Facilities Water Supply and Sewage Facilities Recycled Water Reuse Facilities Maintenance Environmental • Provide maintenance s
Slide 44: ESG Activities
ESG Activities Develop ESG Activities by Positioning it as a Top Priority Issue. In September 2021, the Sustainability Promotion Committee was established to address the issues surrounding sustainability. <<Purpose>> ➢ Increase corporate value over the medium to long term ➢ Minimize risk and expand
Slide 45: Relationship Between Business Activities and SDGs
Relationship Between Business Activities and SDGs Valve & We are working to develop valves that can contribute to solution of the Piping world's water resource problems, such as large valves that can be used Materials in large-scale desalination facilities and automatic hydrants that (valve) integra
Slide 46: Financial Data (FY2013-FY2022)
Financial Data (FY2013‒FY2022) Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 47: Financial data FY2013-FY2022
Unit: Mill. yen FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Sales 38,057 40,837 41,547 42,029 50,174 56,083 56,581 53,551 64,732 77,099 Operating profit 1,172 1,197 1,591 2,062 3,362 4,224 4,368 3,404 6,575 11,947 Ordinary profit 1,649 1,764 1,525 1,944 3,402 4,390 4,395 3,
Slide 48: ROA, ROE, payout ratio and cash flows
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 ROA 2.0% 2.1% 1.7% 2.0% 4.7% 6.2% 4.9% 4.2% 6.7% 11.7% ROE 2.7% 3.0% 2.4% 2.9% 7.0% 9.3% 7.2% 6.2% 9.7% 16.8% Shareholders' equity ratio 69.9% 67.3% 71.2% 70.2% 65.4% 68.4% 66.7% 68.9% 68.6% 70.3% D/E ratio 0.01 0.04 0.02 0.02 0.0
Slide 49: Sales and operating profit by segment
Unit: Mill. yen Sales by segment FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Valve & Piping Systems Divisions 21,113 21,734 23,750 22,907 27,585 33,544 32,169 30,823 37,725 48,532 Resin Divisions 12,980 13,635 12,686 12,202 15,254 16,254 17,215 15,891 18,608 20,550 Water Tr
Slide 50: Sales, Operating profit, Ordinary profit, Net income
Sales (Unit: Mill. Yen) Operating profit (Unit: Mill. Yen) 100,000 14,000 11,947 12,000 80,000 77,099 64,732 10,000 60,000 56,083 56,581 53,551 8,000 50,174 6,575 40,837 41,547 42,029 6,000 40,000 38,057 4,224 4,368 4,000 3,404 3,362 20,000 2,062 2,000 1,197 1,591 1,172 0 0 FY2013 FY2014 FY2015 FY20
Slide 51: Cash flows from operating, investing, financing activities
Cash flows from operating activities (Unit: Mill. Yen) Cash flows from investing activities (Unit: Mill. Yen) 8,000 0 7,175 6,194 5,841 6,000 -1,193 -1,128 -1,536 -1,655 △- 2,000 -2,064 -1,789 -2,069 4,000 3,420 3,225 3,012 -3,019 2,513 2,492 2,240 △- 4,000 1,845 2,000 -3,820 -4,836 0 △- 6,000 FY201
Slide 52: ROA, ROE, Equity ratio, D/E ratio
ROA ROE 16.0% 20.0% 16.8% 16.0% 11.7% 12.0% 12.0% 9.7% 9.3% 7.0% 7.2% 8.0% 6.2% 8.0% 6.7% 6.2% 2.7% 4.0% 2.4% 2.9% 4.7% 4.9% 4.2% 3.0% 0.0% 4.0% 2.0% 2.0% 1.7% △- 4.0% 2.1% 0.0% △- 8.0% FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY
Slide 53: Net income per share and profit ratios
Net income per share (Unit: Yen) Ratio of ordinary profit to total assets 600.00 16.0% 15.1% 491.99 500.00 12.0% 9.8% 400.00 6.8% 300.00 249.21 8.0% 7.0% 203.95 5.8% 5.5% 200.00 164.01 145.31 145.67 3.6% 4.0% 3.3% 3.2% 2.8% 100.00 51.40 59.35 48.35 56.93 0.00 0.0% FY2013 FY2014 FY2015 FY2016 FY2017
Slide 54: Profit/Loss Trend by Segment
Profit/Loss Trend by Segment Operating Profit: Sales:100 million yen Company total Operating Profit: Sales:100 million yen Valve & Piping Systems 100 million yen 900 100 million yen 160 600 120 Divisions 120 600 400 80 80 300 200 40 40 0 0 0 0 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2
Slide 55: Notes
Securities Code; 4216 (Chemical) Notes Forecasts and prospects in this document are based on information available at the time the document was prepared. It does not assure or guarantee the realization of future planned figures or measures. Copyright(c) ASAHI YUKIZAI CORPORATION