Asahi Yukizai Corporation · TSE:4216
Asahi Yukizai — Investor Presentation (July 2022)
52 slides from Asahi Yukizai's investor presentation, Jul 26, 2022
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 July 26, 2022
Slide 2: What is organic material?
What is organic material? What is organic material? Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216 1
Slide 3: Keyword is "resin"
Keyword is "resin" KEYWORD Resin Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216 2
Slide 4: Synthesis, Commercialization, Installation
Synthesis Commercialization Installation (Engineering) Asahi Yukizai Corp. is a rare company operating from upstream to downstream. Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216 3
Slide 5: Table of Contents
Table of Contents 1 Corporate profile P5- 4 FY2022 Forecast, etc. P36- • Business overview • Corporate profit forecast • History of the Asahi Yukizai Group • Breakdown of sales forecast and operating profit • Changes since 2000 and "GNT2025” forecast -- Full year • Vision of the Asahi Yukizai Group
Slide 6: 1 Corporate profile
ASAHI YUKIZAI CORPORATION
Slide 7: Business overview
Business overview Organic material manufacturer with three business divisions Water treatment & natural Thermoplastic resources exploitation valves (Water treatment & Natural Resources Exploitation Divisions) (Valve & Piping Systems Divisions) FY2021 Sales 64.7billion yen Resin materials Operating p
Slide 8: 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© ASAHI YUKIZAI CORPORATION Securities Code 4216 7
Slide 9: 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© ASAHI YUKIZAI CORPORATION Securities Code 4216 8
Slide 10: 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© ASAHI YUKIZAI CORPORATION Securities Code 4216 9
Slide 11: First & No. 1 Niche Top Company
First & No. 1 Niche Top Company Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216 10
Slide 12: 2 Business outline
ASAHI YUKIZAI CORPORATION
Slide 13: Valve & Piping Systems Divisions as main business
37.7 billion yen Valve & Piping FY2021 2-1 Systems Divisions as Sales 64.7 billion yen main business
Slide 14: Strengths of thermoplastic valves
Strengths of thermoplastic valves Demonstrate Metal valves are more common, but thermoplastic valves strengths in special fields work well under special conditions. Acid/Alkali Sea water Steelmaking, chemical, nonferrous metals Rain, Wind, UV ray Aquariums, fishery Metal elution Agriculture Semicond
Slide 15: 2020 Global Niche Top Companies Selections 100 list
ASAHIAV was selected as one of the “2020 Global Niche Top Companies Selections 100 list” (Materials and Chemical Section) in the FY2020 edition by the Ministry of Economy, Trade and Industry. Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216 14
Slide 16: Four strengths that make us No. 1 in the world
Features of our thermoplastic valves Manufacture high-performance and high- quality products with four strengths. Wide variety and lineup of products Four strengths that make us No. 1 in the world A large number of Ability to select dies and molds raw material that realize an grades and know- Co
Slide 17: Dymatrix and FALCONICS semiconductor valves
Dymatrix Series specialized for semiconductor manufacturing equipment Dymatrix Semiconductor manufacturing: Used in the pre-process cleaning equipment applications and and CMP equipment characteristics Respond to strict demands with high technical capabilities "Dymatrix" "FALCONICS" Used in the clea
Slide 18: Thermoplastic valve market
Thermoplastic valve market • Business environment (Global valve market) Securing about 15% share of the global thermoplastic valve market amounting to 70 billion yen (our estimate). 15％ Future global Global thermoplastic thermoplastic valve market valve market 70 billion yen* 140 billion yen* FY2020
Slide 19: Resin Divisions
18.6 billion yen FY2021 Sales Resin Divisions 64.7 billion yen Foundry materials and on-site 2-2 foaming insulating materials Electronic materials, growing particularly for semiconductors
Slide 20: About the foundry materials business
About the foundry materials business Use of foundry Used for engine parts and other casting manufacture material products Established plants in the areas of active automotive-related manufacturers. Engine cut models China resin plant Resin supply base Tochigi RCS plant Aichi RCS and resin plants Hir
Slide 21: About the foundry materials business
About the foundry materials business Copyright© ASAHI YUKIZAI CORPORATION Securities Code 4216 20
Slide 22: Impact of EV conversion
About the foundry materials business Impact of EV Battery cooling system, etc. ︓ New demand to replace engine parts conversion Brake and drive components ︓ Continued demand. High-quality products are required. Changes due to Continued EV conversion demand after EV conversion Brake and drive Engine p
Slide 23: 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 24: About electronic materials
About electronic materials Use of Electronic Photoresist materials and underlying substrates for legacy and materials advanced semiconductors Legacy semiconductors Advanced semiconductors Analog semiconductors, Power Memory, Micro, Logic semiconductors, Opt (LED) semiconductors, Sensors 3D games Sma
Slide 25: Water Treatment & Natural Resources Exploitation Divisions
Water Treatment & 8.4 billion yen Natural Resources FY2021 2-3 Exploitation Divisions Sales 64.7 billion that contributes to the yen environment
Slide 26: History of DRICO
History of DRICO 2019 2013 Started business in Became a subsidiary of Asahi Yukizai 2016 China. Corporation. Started the Started as the Water Treatment & Natural environmental Resources Exploitation Divisions. chemicals business. 2000 Started the recycled 1952 water business Succeeded in steam well
Slide 27: Drilling works 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 (1s
Slide 28: 3 Progress of the Midterm Business Plan
3 Progress of the Midterm Business Plan (released in July 2021) To become a Great Niche Top company that keeps making a real difference
Slide 29: Vision of the Asahi Yukizai Group
Vision of the Asahi Yukizai Group Aim of the New To become a Great Niche Top company, challenge for the "first" and make a Corporate Philosophy “real difference." Purpose To offer peace of mind through trusted quality and dedicated support. Mission Support customers manufacturing process with valued
Slide 30: To become a Great Niche Top company
Group Management Policy To become a Great Niche Top company Pursue growth mainly in our overseas business (Valve Improve profit margins 1 &Piping Systems Divisions, Resin Divisions) and semiconductor-related products. 2 by making a real difference and creating higher added value. Develop our busines
Slide 31: Group performance targets and progress
Group performance targets and progress New Midterm Business Plan (FY2021-2025) released in July 2021 Achieved most of our FY2025 performance targets in FY2021. * Target items achieved Company FY2025 Sales Operating profit ROE ROIC -wide targets 73 billion yen 6 billion yen ８% ６％ targets and FY20
Slide 32: To expand overseas sales
To expand overseas sales Overseas sales expansion Valve & Piping Systems Divisions achieved the target of overseas sales ratio in the first fiscal year due to the successful measures to strengthen overseas manufacturing capabilities. Overseas sales ratio FY2019 FY2020 FY2021 20→21 Valve & Piping F
Slide 33: To expand sales of semiconductor-related products
To expand sales of semiconductor-related products Sales of semiconductor-related products expanded rapidly (from the FY2020 level) 1.6 times Dymatrix Series For cleaning and CMP equipment 20 21 1.3 times Electronic materials for photoresist For legacy and advanced semiconductors 20 21 Copyright© A
Slide 34: Construction of second electronic materials plant
Decision of the construction of the second electronic materials plant Plant construction to meet increasing demand for both advanced and legacy semiconductors. Expand our business by utilizing our low-metal, synthesis, and refinement technologies. Construction to begin in December 2022 Scheduled
Slide 35: Establishment of the Sustainability Promotion Committee
Establishment of the Sustainability Promotion Committee Established the Sustainability Promotion Committee in September 2021 to begin addressing issues surrounding sustainability. <<Purpose>> ➢ Mid- to long-term enhancement of corporate value ➢ Minimize risk and expand profit opportunities Investm
Slide 36: Changes since 2000 and GNT2025
Changes since 2000 and "GNT2025" From a "Niche Top Company" to a "Great Niche Top Company" through aggressive business development. Overseas expansion : ● New business : ● GNT2025 Sales Domestic reform : ● Strengthen the vertical integration To become a "Great Niche Operating profit (hundred million
Slide 37: 4 FY2022 Forecast, etc.
FY2022 Forecast, etc. ASAHI YUKIZAI CORPORATION
Slide 38: Corporate profit forecast
Corporate profit forecast Sales ︓hundred million yen Operating profit Net income for the term ︓hundred million yen 800 80 700 647 68 600 561 566 60 502 536 66 408 415 420 49 48 400 40 200 20 0 0 FY 2014 2015 2016 2017 2018 2019 2020 2021 2022 (forecast) Exchange rate U.S. assumptions dollar 120yen E
Slide 39: Breakdown of sales and operating profit forecast
Breakdown of sales forecast and operating profit forecast -- Full year Sales Increase Increaseininrevenue income Operatingincome Operating profit Increaseininprofits Increase profit Decreaseininincome Decrease profit 単位︓億円 Unit: Hundred mill. yen Unit: Hundred mill. yen +17 +4 700 +3 +2 68 66 +32 -3
Slide 40: Dividends and dividend payout ratio
Dividends and dividend payout ratio • Aim to increase dividends by achieving continuous profit growth while securing stable dividends. Year-end dividend per share (yen) 60 60 Interim dividend per share (yen) 50 50 50 45 30 35 30 30 25 25 25 25 15 15 30 25 25 25 25 20 15 15 FY 2015 2016 2017 2018 201
Slide 41: Stock price trends
Stock price trends Stock price: yen July 25, 2022 2,400 Stock price (closing price) 2,082 yen 2,200 2,000 1,800 1,600 1,400 1,200 1,000 Dividend PER (Company forecast)* PBR (Actual) yield * * Dividend yield and PER (company forecast) are based on the closing price of July 25, 2022 (2,082 yen). 2.9%
Slide 42: 5 Supplementary data
5 Supplementary data ・Corporate Information ・Global Network of the Asahi Yukizai Group ・Business description map (Active locations) Valve & Piping Systems Divisions Resin Divisions Water Treatment & Natural Resources Exploitation Divisions ・Financial data (FY2012-FY2021)
Slide 43: Corporate Information
Corporate Information ■ Trade name ASAHI YUKIZAI CORPORATION ■ Nobeoka Head Office 2-5955 Nakanose-cho, Nobeoka-shi, 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 Prim
Slide 44: Global Network of the Asahi Yukizai Group
Global Network of the Asahi Yukizai Group ASAHI/AMERICA,INC[U.S.A.] ASAHI AV EUROPE GmbH ASAHI KOREA CO, LTD [South Korea] [Germany] Asahi Organic Chemicals Asahi Organic ASAHI YUKIZAI CORPORATION ASAHI YUKIZAI MEXICO S.A.de C.V [Mexico] MIDDLE EAST [Dubai] Trading (shanghai) Co., Chemicals (Nantong
Slide 45: Uses of Valve & Piping Systems Divisions products
Products of Valve & Piping Systems Divisions are used as shown below. Agriculture Chemical plants Semiconductor 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 46: Uses of Resin Divisions products
Products of Resin Divisions are used as shown below. Heat insulating material LED LCD panel Semiconductors Tire parts Transmission • Provide the materials needed to manufacture products. Brake pad • Our products do not remain in form. Disc brake Engine Copyright© ASAHI YUKIZAI CORPORATION Securities
Slide 47: Uses of Water Treatment & Natural Resources Exploitation products
Products of Water Treatment & Natural Resources Exploitation 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
Slide 48: Financial data (FY2012-FY2021)
Financial data (FY2012-FY2021)
Slide 49: Financial data: sales, profit, assets
Unit: Mill. yen FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Sales 32,167 38,057 40,837 41,547 42,029 50,174 56,083 56,581 53,551 64,732 Operating profit 555 1,172 1,197 1,591 2,062 3,362 4,224 4,368 3,404 6,575 Ordinary profit 1,103 1,649 1,764 1,525 1,944 3,402 4,390 4,395
Slide 50: ROA, ROE, payout ratio and cash flows
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 ＲＯＡ - 5.3% 2.0% 2.1% 1.7% 2.0% 4.7% 6.2% 4.9％ 4.2% 6.7％ ＲＯＥ - 7.1% 2.7% 3.0% 2.4% 2.9% 7.0% 9.3% 7.2％ 6.2％ 9.7％ Shareholders' equity 75.0% 69.9% 67.3% 71.2% 70.2% 65.4% 68.4% 66.7% 68.9% 68.6％ ratio D/E ratio 0.00 0.01 0.04 0.02 0
Slide 51: Sales and operating profit by segment
Unit: Mill. yen Sales by segment FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Valve & Piping Systems 20,515 21,113 21,734 23,750 22,907 27,585 33,544 32,169 30,823 37,725 Divisions Resin Divisions 11,652 12,980 13,635 12,686 12,202 15,254 16,254 17,215 15,891 18,608 Water Tr
Slide 52: Notes
Securities Code; 4216 (Chemical) Notes The forecasts and prospects in this document are made by Asahi Yukizai using information available when we created this document. The Company does not ensure nor guarantee the achievement of numerical targets of the business plan nor the implementation of Compa