Toagosei Co., Ltd. · TSE:4045
Toagosei — Q2 2021 Earnings Presentation
22 slides from Toagosei's earnings presentation, Aug 5, 2021
Slide 1: Financial Results for 2Q FY2021
Financial Results for 2Q FY2021 August 5, 2021
Slide 2: Overview of Results for 2nd Quarter of FY2021
Overview of Results for 2nd Quarter of FY2021 Scope of consolidation Number of consolidated subsidiaries: 18 (1 less than in FY2020; Oita Chemical removed.) Number of equity-method affiliates: 2 (no change) 2020.2Q 2021.2Q Change Net sales (Millions of yen) 65,775 74,164 8,388 12.8% Operating income
Slide 3: Summary of Financial Results for 2nd Quarter of FY2021
Summary of Financial Results for 2nd Quarter of FY2021 <Business Environment> • World economy faces future uncertainty amid rising cases of COVID-19 variants • Japan’s economy appears to be in recovery as our mainstay customers in electronic components and automobile related industries are increasin
Slide 4: Consolidated Results (by Segment)
Consolidated Results (by Segment) Net sales (by consolidated segment) (Millions of yen) Change in net sales 2020 2Q 2021 2Q Volume Unit price Change Commodity Chemicals 28,748 32,883 3,074 1,060 4,134 Polymer & Oligomer 13,684 16,486 2,726 75 2,801 Adhesive Material 4,849 5,502 652 0 652 Performance
Slide 5: Other Income/Expenses and Extraordinary Income/Loss (Consolidated)
Other Income/Expenses and Extraordinary Income/Loss (Consolidated) [Other income/expenses] [Extraordinary income/loss] (Millions of yen) (Millions of yen) 2020 2Q 2021 2Q Change 2020 2Q 2021 2Q Change Interest and dividend 495 600 105 income Subsidy income 26 26 Equity in earnings of affiliates 15
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet (Millions of yen) Dec. 31, 2020 Jun. 30, 2021 Change [Balance Sheet] Cash and deposits 48,564 52,907 4,343 1. Notes and accounts receivable increased Notes and accounts receivable 1. 39,757 43,703 3,946 due to the increase in net sales Securities 25,000 25,000 0 2. The fai
Slide 7: Overview of Consolidated Subsidiaries
Overview of Consolidated Subsidiaries (Results for 2nd Quarter of FY2021) (Millions of yen) Net income (loss) Ownership Net sales Operating income (loss) Company name Segment attributable to owners of parent (%) 2020/2Q 2021/2Q 2020/2Q 2021/2Q 2020/2Q 2021/2Q 1 Toa Techno-Gas Commodity Chemicals 100
Slide 8: Challenges in 2nd Half of FY2021
Challenges in 2nd Half of FY2021 Future uncertainty persists amid the COVID-19 pandemic, US-China friction, and the semiconductor shortage, etc. However, production of mainstay customers is expected to remain steady and our performance should be strong. Operating income target for Medium-Term Manage
Slide 9: Consolidated Results Forecast for FY 2021
Consolidated Results Forecast for FY 2021 (Millions of yen) FY2020 FY2021 2H FY2021 forecast FY2021 1H Change (B-A) (A) (forecast) (B) Net sales 133,392 74,164 79,836 154,000 20,608 Operating income 12,336 9,021 8,979 18,000 5,664 Operating income ratio 9.2% 12.2% 11.2% 11.7% 2.4% Other income/expen
Slide 10: Consolidated Results Forecast for FY2021 (by Segment)
Consolidated Results Forecast for FY2021 (by Segment) Net sales (Millions of yen) FY2020 FY2021 Change Factors for change results forecast Commodity Chemicals 58,495 68,100 9,605 [Increase] Acrylic monomer, caustic potash Polymer & Oligomer 26,944 33,800 6,856 [Increase] Acrylic polymer, acrylic oli
Slide 11: Consolidated Results Trends
Consolidated Results Trends (Millions of yen) 30,000 28,300 120.00 25,397 24,782 102.17 25,000 98.08 100.00 96.85 23,039 22,184 20,000 78.91 80.00 17,453 18,000 62.43 16,408 15,000 13,782 60.00 12,336 10,000 40.00 13,000 12,911 12,748 10,387 8,142 5,000 20.00 0 0.00 FY2017 FY2018 FY2019 FY2020 FY202
Slide 12: Reference for Consolidated Performance
Reference for Consolidated Performance (Billions of yen) FY2021 FY2017 FY2018 FY2019 FY2020 forecast Capital investment (acceptance) 10.0 12.5 15.8 13.6 13.2 Capital investment (approval) 22.1 17.0 16.9 11.8 16.0 Depreciation and amortization 7.9 8.3 9.2 9.8 10.3 Research and Development expenses 3.
Slide 13: Reference Trends for Consolidated Performance
Reference Trends for Consolidated Performance (Millions of yen) (Millions of yen) 210,000 50,000 201,997 193,764 192,885 40,000 186,419 182,624 80.5% 79.8% 30,000 78.4% 170,000 76.5% 77.3% 20,000 12,150 11,692 11,534 11,376 11,208 10,000 130,000 0 FY2017 FY2018 FY2019 FY2020 FY2021 (forecast) Shareh
Slide 14: EBITDA/PP&E Ratio Trends
EBITDA/PP&E Ratio Trends (Millions of yen) (Millions of yen) 100,000 50,000 78,301 80,579 74,376 40,000 67,083 62,663 28,300 30,000 25,397 24,782 50,000 23,039 22,184 40.5% 20,000 36.9% 35.3% 31.0% 10,000 28.3% 0 0 FY2017 FY2018 FY2019 FY2020 FY2021 (forecast) PP&E (left scale) EBITDA (right scale)
Slide 15: Shareholder Return Trends
Shareholder Return Trends Total return ratio 150.0% 95.4% 100.0% 63.8% 47.2% 38.0% 50.0% 24.8% 26.5% 28.9% 0.0% (Millions of yen) 9,000 36 34 8,000 34 7,000 32 3,882 4,000 6,000 30 30 30 5,000 28 28 4,000 26 26 24 26 3,000 4,298 24 2,000 3,685 3,948 3,881 3,159 3,422 3,422 1,000 22 0 20 FY2015 FY201
Slide 16: Medium-Term Management Plan: Operating Income Trends
Medium-Term Management Plan “Stage up for the Future”: Operating Income Trends High-value-added (Billions of yen) 高付加価値製品 products 汎用製品 Commodity products 18.0 17.5 17.0 16.1 16.4 2H 下期 forecast 予想 13.8 3.9 Commodity products 6.8 7.6 6.3 12.0 12.3 5.9 12.3 7.1 1H 上期 3.1 5.5 3.7 3.6 4.8 下期 2H forecas
Slide 17: Provision of social value through business
Toagosei Group’s Sustainability Initiatives Materiality Focus Area See page (The Group’s related products and initiatives) Mitigation of climate change through reduction of CO2 emissions Energy (Reforming production process to lower CO2 emissions) 17 and 19 Provision of social value through business
Slide 18: Toagosei's long-term vision for curbing climate change
Initiatives in Energy Toagosei’s long-term vision for curbing climate change GHG emissions reduction target 2030: 50% reduction vs. 2013 2050: Achieve net-zero emissions GHG emission reduction trends and reduction target (Results up to 2020) (Scope 1 + Scope 2) 19% reduction vs. 2013 (Thousand t-CO2
Slide 19: Initiatives in Mobility and Electronics
Initiatives in Mobility and Electronics Mobility Polymers for Li • Rapid growth in sales buoyed by expanding EV market batteries Annual net sales forecast to double year on year • For automotive fuel cells (adopted by new Toyota MIRAI) High-performance Full-fledged launch of production of high-perfo
Slide 20: Initiatives in Healthcare, Lifelines and Other Fields
Initiatives in Healthcare, Lifelines and Other Fields Healthcare Antimicrobial • Strong sales amid COVID-19 pandemic Tapping into new markets including construction materials, and antiviral agent paints, and textiles, etc. (NOVARON) Inorganic deodorant • Business growing centered on deodorized texti
Slide 21: Product News
Product News Released Aron Zia Clean200, an aqueous solution of hypochlorous acid This product effectively removes and sterilizes viruses and mold spores from personal effects, making it a good choice as a countermeasure against COVID-19 Confirmed efficacy of antiviral grade NOVARON against COVI
Slide 22: New Value Creation
New Value Creation Development of new healthcare products Development of new medical equipment materials • Currently developing products for various new healthcare adhesives by utilizing our knowledge gained through medical-use Aron Alpha A Sankyo and our core polymer synthesis technologies • Acce