Moresco Corporation · TSE:5018
Moresco — 2Q FY2024 Earnings Presentation
26 slides from Moresco's earnings presentation, Oct 21, 2024
Slide 1: The 67th 2Q (Interim) Financial Report
MORESCO Corporation MORESCO Group delivers sustainable one-of-a-kind products The 67th 2Q (Interim) Financial Report (From March 1, 2024 to August 31, 2024) Tokyo Stock Exchange Standard Market 5018 (Petroleum and Coal Products) October 21, 2024 Copyright © MORESCO Corporation All Rights Reserved.
Slide 2: Contents
⚫ Management environment and business overview Contents ⚫ Performance report ⚫ Topics Copyright © MORESCO Corporation All Rights Reserved. 2
Slide 3: Contents
⚫ Management environment and business overview Contents ⚫ Performance report ⚫ Topics Copyright © MORESCO Corporation All Rights Reserved. 3
Slide 4: Business Environment - Volume of automobile production
Business Environment - Volume of automobile production Volume of automobile production in areas where our business sites are located 10,000 units (+1.6%) (% compared to 2,761 2,804 previous year) 2,490 2,502 441 (▲2.5%) 452 1,904 551 571 (+3.7%) Southeast/ South Asia United 379 NEV 493 States China
Slide 5: Business Environment - Trends in foreign exchange, crude oil and naphtha prices
Business Environment - Trends in foreign exchange, crude oil and naphtha prices ➢ The yen continued to weaken; crude oil and naphtha prices rose vs. last year Quarterly trend Year-on-year comparison (half-year basis) 158 160 150 146 146 139 140 140 137 2023 2024 140 133 YoY 2024 (March– (March– Vs.
Slide 6: Consolidated Statement of Income
Consolidated Statement of Income Year-on-year (Million yen) 23-2Q 24-2Q change Net sales 15,386 17,102 +11.2％ Gross profit 4,197 4,901 +16.8％ SG&A 3,669 4,230 +15.3％ Operating profit 528 671 +27.0％ Non-operating profit (loss) 405 294 ▲27％ Ordinary profit 933 965 +3.4% Profit before tax 933 917 ▲1.7%
Slide 7: Net sales by Division
Net sales by Division ➢ Overall sales increased by 11% as a result of the demand recovery in Special Lubricants and Liquid Paraffin & Sulfonates. 17,102 Year-on- Other 15,386 (Million yen) 23-2Q 24-2Q year change Liquid Paraffin & Special Lubricants Sulfonates Division 8,343 9,628 +15％ Hot Melt Adhe
Slide 8: Special Lubricants
Special Lubricants [Net sales] Up 15.4％ year on year (¥9,628 million) [Sales volume] Up 6.3％ year on year ➢ DC fluids Million yen Sales increased due to an increase in the automobile production volume in 2,598 2,563 the United States and China as well as 2,386 2,346 a newly consolidated subsidiary.
Slide 9: Hot Melt Adhesive
Hot Melt Adhesive [Net sales] Down 1.0％ year on year (¥4,152 million) [Sales volume] Up 0.5％ year on year ➢Hygiene applications Million yen Inventory adjustment and decline in demand 3,082 3,018 in Southeast/South Asia. ➢Adhesive The demand in Southeast/South Asia decreased. 706 523 588 427 ➢Other S
Slide 10: Liquid Paraffin & Sulfonates
Liquid Paraffin & Sulfonates [Net sales] Up 9.0％ year on year (¥2,114 million) [Sales volume] Up 7.2％ year on year Million yen ➢Liquid Paraffin 1,421 1,571 Profits increased due to the demand recovery in polystyrene plasticizers applications. 386 ➢Sulfonates 368 150 157 Slightly increased year on ye
Slide 11: Contents
⚫ Management environment and business overview Contents ⚫ Performance report ⚫ Topics Copyright © MORESCO Corporation All Rights Reserved. 11
Slide 12: Consolidated Statement of Income
Consolidated Statement of Income Year-on-year Net sales (Million yen) 23-2Q 24-2Q change • Recorded higher sales due to an increase in sales volume Net sales 15,386 17,102 +11.2％ and sales price adjustments • Contribution from business Gross profit 4,197 4,901 +16.8％ acquisition of an overseas subsi
Slide 13: Net Sales and Gross Profit Margin
Net Sales and Gross Profit Margin ➢ Profit ratio increased by 2.0% year on year due to the promotion of price adjustments and an increase in sales of high-value-added products Million yen 9,000 8,847 50% Net Sales Gross Profit Margin 8,500 8,000 40% 7,790 7,473 7,500 7,000 30% 29.1% 26.6% 27.1% 6,50
Slide 14: Segment Profits and Losses
Segment Profits and Losses [Japan] Recorded higher sales and profits due to the sales recovery of hard disk surface lubricants as well as sales of large equipment by a subsidiary. [China] Recorded higher sales due to an increase in the volume of Japanese automobile production and an increase in ship
Slide 15: Consolidated Balance sheet
Consolidated Balance sheet Current Assets (Million yen) Change Change • Impact of end of term being a Cash and deposits 5,064 ▲572 Trade payables 5,114 +260 holiday Interest-bearing Trade receivables 8,855 +914 liabilities 5,349 ▲756 Non-current Assets Other current • Property, plant and equipment:
Slide 16: Consolidated Cash flow
Consolidated Cash flow ➢ Factors behind change (Million yen) ＋1,074 Operating cash flow • Profit before income taxes ＋917 ▲295 • Depreciation ＋643 • An increase in trade ▲1,216 ▲66 receivables ▲487 Investment cash flow • Purchase of property, plant and equipment ▲253 5,566 5,064 • Purchase of intang
Slide 17: FY2024 Earnings Forecast
FY2024 Earnings Forecast Forecasts for the fiscal year ending Progress (Million yen) February 2025 24-2Q rate ➢Premises of the full- year forecasts Crude oil price: 97$/b Net sales 34,000 17,102 50％ Exchange rate: $145 dollars/¥1 Operating profit 1,500 671 45％ ➢Dividend/share (forecasts) Ordinary pr
Slide 18: Shareholder Returns
Shareholder Returns ➢ Annual dividends estimated at 45 yen (20 yen interim, 25 yen year-end). ➢ Consolidated payout ratio expected to be 39.3%. Dividend per share and consolidated payout ratio (yen） Dividend per share Consolidated payout ratio 50 50 50 100% 45 45 45 45 40 40 40 40 40 74.0% 61.8% 60.
Slide 19: Contents
⚫ Management environment and business overview Contents ⚫ Performance report ⚫ Topics Copyright © MORESCO Corporation All Rights Reserved. 19
Slide 20: Roadmap to Carbon Neutrality
Roadmap to Carbon Neutrality ➢ 46% reduction in GHG emissions from internal energy consumption by 2030 (compared to 2013) ➢ Achieve carbon neutrality by 2050 Roadmap to carbon neutrality Unit: t- CO₂ Scope1 Scope2 12,000 -46％ Main initiatives 11,035 vs. 2013 • Introduce more energy- 10,000 -60％ 8,74
Slide 21: Sales of MGS Products in FY2023
Sales of MGS Products in FY2023 ➢ Sales ratio rose to 33% in FY2023 due to increased sales of a special lubricant product and new certification of environmental equipment. MGS products sales ratio Sales of MGS products by business segment 10.4 billion yen Certification of (+458%) environmental 8.7 O
Slide 22: Liquid Fertilizer Project in Maniwa City, Okayama Prefecture
Liquid Fertilizer Project in Maniwa City, Okayama Prefecture (MATSUKEN CO., LTD.) ➢ MATSUKEN’s bio-liquid fertilizer concentrator was selected for a liquid fertilizer project in Maniwa City, Okayama Prefecture. ➢ The concentrator facility supplied by MATSUKEN is scheduled to begin operations around
Slide 23: Progress in Technology for Creating Non-petrochemical Materials
Progress in Technology for Creating Non-petrochemical Materials ➢ Bench equipment that generates bio formic acid was brought into the Hokko biogas plant in 2024. ➢ Kurita Water Industries Ltd., OSAKA SODA CO., LTD. and JA Kitaokhotsk joined the OCNIC consortium. Biopolymer Hokko bio-gas plant (tenta
Slide 24: Participation in Perovskite Solar Cell Demonstration Experiment
Participation in Perovskite Solar Cell Demonstration Experiment ➢ We installed a prototype using our sealant at a farm in Takatsuki City, Osaka Prefecture, for the purpose of a perovskite solar cell demonstration experiment (October 2, 2024). Prototype of next-generation solar cell “perovskite” ・ It
Slide 25: Issuance of MORESCO Group Integrated Report 2024
Issuance of MORESCO Group Integrated Report 2024 ➢ We have published our first report to help shareholders, investors, and all other stakeholders understand our Group’s initiatives for continuous value creation. Overview of MORESCO Group Integrated Report 2024 1. Values and Long-term Strategy The re
Slide 26: Head Office and R&D Center
Head Office and R&D Center Kobe City Kobe Airport ➢ Performance outlook and other information related to future forecasts and strategies contained in this material is based on the Company’s decisions at the time of preparation of this material and is subject to change in the future without prior not