Shinagawa Refra Co., Ltd · TSE:5351

Shinagawa Refra — Shinagawa Refractories — FY2019 Earnings Presentation

15 slides from Shinagawa Refra's earnings presentation, Jun 26, 2020

  1. Slide 1: Shinagawa Update: Results for Fiscal Year Ended March 2020

    TSE Securities Code Number: 5351 Shinagawa Update Results for Fiscal Year Ended March 2020 Published on Website June 26, 2020 Sky is the Limit: Shaping the Future of Refractories Shinagawa Refractories Presentation of Results for Fiscal Year Ended March 2020

  2. Slide 2: Consolidated Financial Highlights

    １． Consolidated Financial Highlights （Unit: Million JPY） FY 2018 FY 2019 YoY Results Results Net Sales 119,067 118,973 － 0.1% Operating Income 10,233 9,597 － 6.2% Ordinary Income 10,659 9,844 － 7.6% (ROS) （9.0％） （8.3％） （ － 0.7pt） Profit attributable to 6,225 5,550 － 10.8% owners of parent ● Operatin

  3. Slide 3: Consolidated Net Sales & Operating Income

    ２．Consolidated Net Sales & Operating Income (Unit: Billion JPY) Net Sales (Left Axis) (Unit: Billion JPY) 140.0 Operating Income (Right Axis) 16.0 123.0 119.0 118.9 14.0 120.0 100.1 103.7 102.7 97.8 12.0 100.0 106 98 10.0 80.0 9.0 8.3 ROS 8.0 63 63 8％ 60.0 52 6.0 49 40.0 6.1 6.2 ROS 4.0 5.1 5.2 20.0

  4. Slide 4: Net Sales by Business Segment

    ３． Net Sales by Business Segment （Unit: Million JPY） FY 2018 FY 2019 YoY Results Results Refractories & Related Products 93,102 78.2 89,930 75.5 － 3.4% Furnace Construction & Engineering 23,950 20.1 27,074 22.8 ＋13.0% Real Estate & Other Businesses 2,014 1.7 1,968 1.7 － 2.3% Total 119,067 100.0 118,

  5. Slide 5: Operating Income by Business Segment

    ４．Operating Income by Business Segment （Unit: Million JPY） FY 2018 FY 2019 YoY Results Results Refractories & Related Products 9,667 84.3 8,641 79.5 － 10.6% Furnace Construction & Engineering 763 6.7 1,177 10.8 ＋54.3% Real Estate & Other Businesses 1,034 9.0 1,057 9.7 ＋2.2% Total 11,464 100.0 10,877

  6. Slide 6: Factors Behind Changes in Operating Income (YoY)

    ５．Factors Behind Changes in Operating Income (YoY) (Unit: Billion JPY) Negative Factors Positive Factors － 2.4 ＋1.8 Change in Total – 0.6 10.2 9.6 Foreign Furnace Exchange Lower Cost Construction Gains Refractories Reduction ＋0.4 ＋0.1 Sales Less ＋0.3 Volume Profits at Changes Price － 1.7 Group in Re

  7. Slide 7: Consolidated Balance Sheet

    ６．Consolidated Balance Sheet (Unit: Million JPY) 2019/3 2020/3 Changes ・ Cash & Deposits ＋1,424 ・ Receivables - 1,195 Current Assets 72,167 72,010 － 157 ・ Inventories - 423 ・ Tangible Fixed Assets ＋1,808 Fixed Assets 39,059 38,237 － 822 ・ Investment Securities - 2,715 Total Assets 111,227 110,247 －

  8. Slide 8: Consolidated Cash Flows

    ７．Consolidated Cash Flows (Unit: Million JPY) [Main contents of cash flows from operating activities] FY 2018 FY 2019 Changes Cash Flows from ・ Income before Income Taxes ＋ 8,102 Operating Activities 4,288 7,769 ＋3,481 ・ Depreciation ＋ 2,538 Cash Flows from － 1,179 － 3,840 － 2,661 ・ Changes in Recei

  9. Slide 9: Area of Focus ① Domestic Market: Sales Expansion

    ８． Area of Focus ① Domestic Market Sales Expansion in Japanese Domestic Market ～ Focus on New Market Development ～ １ Existing Market Future Uncertain ● Need time to recover as domestic crude steel production continues to fall ⇒ Continue to provide our best supports while hoping for a quick recovery

  10. Slide 10: Area of Focus ② Overseas Business Expansion

    ８． Area of Focus ② Overseas Market Overseas Business Expansion ～ Existing Business Expansion & New Markets Development ～ １ Overseas Production Expansion ●SAM (USA): Built a New Tower to produce Spray Dried Shinagawa Advanced Materials Americas, Inc. Mold Powders for Continuous Casting ⇒ Commenced Op

  11. Slide 11: Financial Targets & Strategies: Capital Spending

    ９．Financial Targets & Strategies 1 Capital Spending Active Capital Spending to Enable Flawless Operation and Enhance Product Competitiveness Capital Spending FY 2018 FY 2019 (Unit: Million JPY) Plan (a) 4,100 4,800 Capital Spending of 8,900 Million JPY in 2 years is more than our Results (b) 4,700 4

  12. Slide 12: Financial Targets & Strategies: Shareholder Returns

    ９． Financial Targets & Strategies ２ Shareholder Returns Interim Dividend Dividend per Share (%) 65 JPY (JPY) Dividend per Share Payout Ratio 250 25 21.9 21.9 Year End Dividend 18.3 20.2 20 200 65 JPY 15 150 Total Annual Dividend 135 130 10 130 JPY 100 80 5 (On Budget) 70 50 0 FY 2016 FY 2017 FY 2018

  13. Slide 13: Future Outlook

    １０．Future Outlook As an ongoing global pandemic of COVID-19 is having a significant adverse impact on Japanese and global economic activities, it is widely believed that it will take considerable time for the outbreak to be contained and the economy to recover. This is also seriously impacting Japan

  14. Slide 14: Disclaimer

    Disclaimer This document is intended to provide information on the results for the fiscal year ended March 2020 (April 2019 – March 2020) and is not intended to solicit investment in securities issued by the Company. The document was prepared based on data available as of June 26, 2020. Opinions, fo

  15. Slide 15: Shinagawa Update

    TSE Securities Code Number: 5351 Shinagawa Update Results for Fiscal Year Ended March 2020 Published on Website June 26, 2020 Sky is the Limit: Shaping the Future of Refractories Shinagawa Refractories Presentation of Results for Fiscal Year Ended March 2020 14

Shinagawa Refractories — FY2019 Earnings Presentation on 6ix