Fuji Seal International, Inc. · TSE:7864
Fuji Seal International — FY2022 Earnings Presentation
33 slides from Fuji Seal International's earnings presentation, May 11, 2023
Slide 1: FY2022 Full Year Financial Results Supplementary Briefing Materials
FY2022 Full Year Financial Results Supplementary Briefing Materials Fuji Seal International, Inc. May 11, 2023 Copyright 2023 Fuji Seal Group
Slide 2: Table of Contents
Table of Contents 1. Consolidated Financial Results for FY2022 2. FY2023 Earning Forecast 3. Strategies for FY 2023 and further Sustainable Growth • Human Resource Strategy • Intellectual Property Strategy • Business Strategy 4. Improvement of External Survey Evaluations and Environmental Reports Co
Slide 3: FY2022 Financial Results (1) Consolidated Financial Results
1. FY2022 Financial Results (1) Consolidated Financial Results ⚫ Sales increased but operating profits and ordinary profits decreased significantly from the previous year. Net profits increased. ⚫ Sales, operating profits, ordinary profits and net profits exceeded the revised figures announced in Fe
Slide 4: FY2022 Financial Results (2) Net Sales by Region
1. FY2022 Financial Results (2) Net Sales by Region ⚫ By region (excl. forex impact), sales in Japan and Europe (excluding FSCH) increased year-on-year, while sales in the Americas and ASEAN decreased. ～ FY2021 FY2021 FY2022 Year-on-year Full year 170,321 Excluding forex impact (Millions of yen) Ful
Slide 5: FY2022 Financial Results (3) Net Sales by Region
1. FY2022 Financial Results (3) Net Sales by Region Year-on-year change FY2021 FY2022 Excluding forex • Shrink label sales increased due to recovery in the (Millions of yen) Full year Full year Change Rate of change impact beverage sector. • PS label sales declined due to a reaction to special Rate
Slide 6: FY2022 Financial Results (4) Operating Profits by Region
1. FY2022 Financial Results (4) Operating Profits by Region ⚫ Profits in Americas, Europe, and ASEAN countries decreased due to continued increases in raw material prices, distribution costs, and utility costs that exceeded the effects of price revisions. ⚫ The same applies to Japan. However, the co
Slide 7: FY2022 Financial Results (5) Non-operating Income (Expenses) and Extraordinary Income (Loss)
1. FY2022 Financial Results (5) Non-operating Income (Expenses) and Extraordinary Income (Loss) Increase/Decrease FY2021 FY2022 [Non-operating income] (Millions of yen) Full year Full year ● Interest income from time deposits in foreign currency (Amount) (%) increased by 97 million yen. Net sales 17
Slide 8: FY2022 Financial Results (6) B/S
1. FY2022 Financial Results (6) B/S (Millions of yen) End of End of Rate of FY2021 FY2022 change Equity ratio 66.5% 67.0% +0.5pt Interest-bearing debt 12,520 12,578 +0.5% D/E ratio 11.4% 10.4% △1.0pt Foreign USD Currency 115.02 132.70 +15.4% Translation EUR Rate 130.51 141.47 +8.4% Major Points of I
Slide 9: FY2022 Financial Results (7) CF and Capital Expenditures and Depreciation
1. FY2022 Financial Results (7) CF and Capital Expenditures and Depreciation ■ Cash flow (Millions of yen) End of FY2021 End of FY2022 Breakdown of CF for the Fiscal Year under Review CF Period-start cash and deposits balance 21,549 24,105 Profits before income taxes +7,733、Depreciation and amortiza
Slide 10: Table of Contents
Table of Contents 1. Consolidated Financial Results for FY2022 2. FY2023 Earning Forecast 3. Strategies for FY 2023 and further Sustainable Growth • Human Resource Strategy • Intellectual Property Strategy • Business Strategy 4. Improvement of External Survey Evaluations and Environmental Reports Co
Slide 11: FY2023 Earnings Forecast (1) Overview of Consolidated Results
2. FY2023 Earnings Forecast (1) Overview of Consolidated Results FY2023 Year-on-year change FY2022 Full year （Millions of yen） Full year Change (％) (forecast) Net sales 184,035 191,000 6,964 +3.8% Operating profits 8,194 10,600 2,405 +29.4% ● Sales and profits are expected to （Operating Profit Margi
Slide 12: FY2023 Earnings Forecasts (2) Sales and Operating Income by Region
2. FY2023 Earnings Forecasts (2) Sales and Operating Income by Region Year-on-year change FY2023 FY2022 Excluding (Millions of yen) Full year Full year Change Rate of change forex impact (Forecast) rate of change Consolidated 184,035 191,000 +6,964 +3.8% net sales Japan 97,135 98,500 +1,364 +1.4% Am
Slide 13: FY2023 Earnings Forecasts (3) Sales by Business Segment
2. FY2023 Earnings Forecasts (3) Sales by Business Segment Copyright 2023 Fuji Seal Group 13
Slide 14: Policy on Profit Distribution, Scheduled Dividend for FY2022, and Dividend Forecast for FY2023
2. Policy on Profit Distribution, Scheduled Dividend for FY2022, and Dividend Forecast for FY2023 [Basic Policy on Profit Distribution] FY2022 FY2023 ⚫ Investment for continuous growth (technology development, human resource Schedul Forecast development, capital investment, M&A) ed ⚫ Targeting a con
Slide 15: Table of Contents
Table of Contents 1. Consolidated Financial Results for FY2022 2. FY2023 Earning Forecast 3. Strategies for FY 2023 and further Sustainable Growth • Human Resource Strategy • Intellectual Property Strategy • Business Strategy 4. Improvement of External Survey Evaluations and Environmental Reports Co
Slide 16: Initiative for Sustainable Growth: Sustainable Growth Strategy
3. Initiative for Sustainable Growth : Sustainable Growth Strategy Sustainable Business Growth Creation of new business Seed and nurture start-up models that will lead to the businesses that will become future next generation mainstay businesses Expansion of business areas Expansion of utilizing exi
Slide 17: Initiative for Sustainable Growth: Human Resource Strategy
3. Initiative for Sustainable Growth: Human Resource Strategy "Human Resource Investment’’ Group Slogan:We call creation a "dream“ We call challenges to creation "courage“ We call a heated discussion on creation "trust" We regard human resources as our most important resource, and are working to cre
Slide 18: Intellectual Property (IP) Strategy: IP Investment for the Next Generation
3. Initiatives for Sustainable Growth Intellectual Property (IP) Strategy : IP Investment for the Next Generation Spreading the importance of offensive/defensive IP strategy for contributing to the creation of new value in packaging and new businesses that will become new pillars of FSG to establish
Slide 19: IP Strategy "Idea Bank"
3. Initiatives for Sustainable Growth : IP Strategy “Idea Bank” Number of Idea application Embodying the Action Guideline “Change along with the Change” ⚫ Develop human resources who can find and solve problems on their own. ⚫ Corporate culture of continuous challenge to "Proposing hypotheses" on a
Slide 20: Priority measures by business for FY2023
3. Initiative for Sustainable Growth: Priority measures by business for FY2023 shrink label PS label Steadily strengthen existing businesses Steadily strengthen existing businesses • Expansion of market share by shifting to environmentally friendly • Expansion of market share by shifting to environm
Slide 21: Construction of a new model plant: New plant in North Carolina, U.S.A.
3. Construction of a new model plant: Steadily strengthen four existing business New plant in North Carolina, U.S.A. Building a Production System to Support Sustainable Growth in the Americas ⇒ Construction has been completed in April 2023 ◼ Factories that are friendly to people and the environment
Slide 22: Market Expansion of Fuji Pouch
3. Primary packaging business: Expansion of product markets and target areas Market Expansion of Fuji Pouch® ® • Provide environmentally friendly products (i.e., flexible Fuji Pouch ) to the bottle product market. 70% less plastic than standard pump-type bottles • The new product is available in a v
Slide 23: Expansion of pharmaceutical business ①
Expansion of product markets and target areas 3. Expansion of pharmaceutical business ① ◼ Specialization in pharmaceutical business <Responding to an Aging Society> ※ Increase in generic drugs (related to imported drugs) ※ Expansion of medical sundries and hygiene products ⇒ October 2021: New buildi
Slide 24: Expansion of pharmaceutical business ②: Purchase of land adjacent to the Italian plant
3. Expansion of pharmaceutical business ②： Expansion of product markets and target areas Purchase of land adjacent to the Italian plant ⚫ In April 2023, purchased 15,700 m2 of land adjacent to Italian factory ⚫ Newly built an environmentally friendly factory to expand production capacity. Responding
Slide 25: India Business Expansion
Expansion of product markets and target areas 3. India Business Expansion Business Strengthening the global responsiveness of services Strategy Enhanced global responsives with highly skilled human resources Sustainability Needs Actively developing the machinery business as a core business, taking a
Slide 26: Individual identification technology Deep IS
Creation of new business models that will TM lead to the next generation 3. Individual identification technology Deep IS What is Deep ISTM ? We have been operating in Switzerland since 2012. Co-developed with Swiss startup DynamicElement. Anti-counterfeiting technology by image identification Differ
Slide 27: Table of Contents
Table of Contents 1. Consolidated Financial Results for FY2022 2. FY2023 Earning Forecast 3. Strategies for FY 2023 and further Sustainable Growth • Human Resource Strategy • Intellectual Property Strategy • Business Strategy 4. Improvement of External Survey Evaluations and Environmental Reports Co
Slide 28: Improve Evaluation of External Surveys ① EcoVadis
4. Improve Evaluation of External Surveys ① EcoVadis Assessment of ESG survey Last year This year Improved assessment of ESG surveys 54 68 (October, 2022) Acquired Gold Medal in 2022 ●"Gold" is awarded to companies that have received a high evaluation in the top 5% from among all evaluation targets
Slide 29: Improve Evaluation of External Surveys ② CDP
4. Improve Evaluation of External Surveys ② CDP 2022 evaluation results Climate Change: Upgraded from Management Level "B" to Leadership Level "A-" Water: Continued to maintain Management Level "B" from the year before last Supplier Engagement: Maintained Leadership Level "A-" from last year In orde
Slide 30: Improve Evaluation of External Surveys ③ ESG indices
4. Improve Evaluation of External Surveys ③ Assessment of ESG survey Last year This year Continue to be selected as a component of ESG index MSCI 7.86 7.325 ・MSCI (Jun. 2022) (WIN) Japanese Empowering Women Index since 2019 (WIN, 368 stocks) 3.4 3.5 FTSE (Jun. 2022) ・FTSE Blossom Japan Index in 2021
Slide 31: List of most recent environmental reports (Vol. 18 - Vol. 21)
4. List of most recent environmental reports (Vol. 18 - Vol. 21) ・Environmental Report Vol. 18 Initiatives on Water-based Printing https://www.fujiseal.com/en/csr/pdf/environmental_report_v18.pdf ・Environmental Report Vol. 19 Startup of Corporate PPA at Sinsakhon Plant https://www.fujiseal.com/en/cs
Slide 32: Our Vision
Our Vision Copyright 2023 Fuji Seal Group 32
Slide 33: Cautionary Statement
Cautionary Statement This report is intended to provide a better understanding of the Fuji Seal Group and is not necessarily intended to recommend investment. This report includes earnings forecasts and business plans, which are based on certain assumptions in the economic environment and business p
Fuji Seal International — FY2022 Earnings Presentation on 6ix