Chubu Steel Plate Co., Ltd. · TSE:5461
Chubu Steel Plate — FY2023 Earnings Presentation
30 slides from Chubu Steel Plate's earnings presentation, May 9, 2024
Slide 1: Fiscal Year Ended March 2024 Financial Results Presentation
Fiscal Year Ended March 2024 Financial Results Presentation May 9, 2024 (Thursday) 【TSE prime market：5461】
Slide 2: Table of Contents
Table of Contents Financial Results for Fiscal Year 2 Ended March 31,2024 Financial Forecast for Fiscal Year 15 Ending March 31,2025 【Notice Regarding the Handling of This Document】 This presentation is not a disclosure document under the Financial Instruments and Exchange Act, and it does not guara
Slide 3: Financial Results for Fiscal Year Ended March 31, 2024
Financial Results for Fiscal Year Ended March 31,2024 © 2024 Chubu Steel Plate Co., Ltd. 2
Slide 4: Consolidated Operating Results
Consolidated Operating Results Net sales and operating profit increased compared with FY2023 forecast, down from the FY2022 results Reasons for Reduced sales volume due to long-term suspension of electric arc Decrease in Revenue furnace(EAF) by construction in summer Reasons for Despite of metal spr
Slide 5: FY2023 Quarterly consolidated results
FY2023 Quarterly consolidated results Ordinary profit declined during 2Q due to long-term suspension of EAF by construction, Sales quantity was achieved as forecast and profits exceeded forecast in the latter half FY2023 （JPY Million） 1Ｑ 2Ｑ 3Ｑ 4Ｑ Full year Forecast ※ － － 17,300 17,500 67,600 Net sal
Slide 6: Steel Product Sales Volume Trends
Steel Product Sales Volume Trends Steel Product Sales Volume Trends (tons) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1st half 2nd half 1st half 2nd half 1st half 2nd half 1st half 2nd half 1st half 2nd half 2019 2020 2021 2022 2023 (Thousand tons) 270 250 220 270 290 330 300 280 240 2
Slide 7: Steel Scrap Prices Trends
Steel Scrap Prices Trends (Yen/ton) H2 Scrap Price Trends ：Year average 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 FY2022 FY2023 ＊Purchase price for H2 © 2024 Chubu Steel Plate Co., Ltd. 6
Slide 8: Metal Spread Trends
Metal Spread Trends Index（％） ：Year average Metal Spread Trends Set 2020.1Q as 100 175 150 125 100 75 50 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 FY2022 FY2023 ＊The spread between sales price of steel products and raw material payment price © 2024 Chubu Steel Plate Co., Ltd. 7
Slide 9: 2,100 Mn.Y Decrease in Profit
Factors for changes in Ordinary Profit(Y/Y, Consolidated) （JPY Million） Effect of decrease in production：－812 Scrap price： Decreases by Decreases by （Crude steel production 660,000 tons ⇒ 64,000 tons 6.1％ 560,000 tons） Effect of inventory unit costs：－621 Sales price： Decreases by 0.6％ －1,452 988 －1,
Slide 10: 428 Mn.Y Increase in Profit
Factors for changes in Ordinary Profit(vs. guidance, Consolidated) （JPY Million） ※Revised forecast on November 2023 Scrap price： Decreases by Decreases by 10,000 tons 0.5％ Sales price： Increases by 1.4％ －312 905 65 －230 Decrease Metal Increase in Others in sales spread cost of volume of expansion pr
Slide 11: 352 Mn.Y Decrease in Profit
Factors for changes in Ordinary Profit(FY23 3Q vs. FY23 4Q, Consolidated) （JPY Million） Scrap price： Effect of inventory unit costs：＋585 Decreases by Increases by 2,000 tons 2.3％ Sales price： Decreases by Effect of product yield：－269 1.2％ －51 －112 －394 205 Decrease Metal Decrease in Others in sales
Slide 12: FY2023 dividends
FY2023 dividends FY2023 dividend policies Whichever is higher 「Dividend payout ratio 35% or 60 yen/share」 （yen） （Billions of yen） 100 10.3 60% Dividends(left) Buyback yield Ordinary profit(right) 10.2 55% 95 Payout ratio 10.1 50% 10 90 45% 9.9 40% 85 9.8 35% 9.7 30% 80 9.6 25% 9.5 75 20% 9.4 15% 70
Slide 13: Our Position in the EAF Industry
Our Position in the EAF Industry Our Position in the EAF Industry Ordinary profit margin of EAF companies Ordinary profit rate Net sales Company Main steel products FY2022 FY2023 3Q rank name Profit margin Rank Profit margin Rank Steel Steel 1 Company A Bars Sections sheets plates 10.9％ 3 11.3％ 4 2
Slide 14: Results by segment
Results by segment （JPY Million） FY2022 FY2023 Increase/Decrease Net sales to Net sales to Net sales to Operating Operating Operating external external external profit profit profit customers customers customers Steel related 73,385 11,800 65,020 10,019 －8,364 －1,781 business Others 2,934 460 2,765
Slide 15: Financial condition (Consolidated)
Financial condition（Consolidated） (JPY Million) As of March As of March Increase 31, 2023 31, 2024 /Decrease Assets Cash and deposits 10,906 13,516 ＋2,610 Trade receivables 21,562 27,083 ＋5,520 Securities 14,597 6,998 －7,599 Inventory 13,305 13,575 ＋270 Property, plant and equipment 19,028 21,382 ＋2
Slide 16: Financial Forecast for Fiscal Year Ending March 31, 2025
Financial Forecast for Fiscal Year Ending March 31,2025 © 2024 Chubu Steel Plate Co., Ltd. 15
Slide 17: FY2024 Consolidated Financial Forecast
FY2024 Consolidated Financial Forecast Similar to the previous term, we expect that both the sales volume and prices Reasons for Increases in Revenue will be almost at the same level as the previous term due to long-term suspension effect resulting from renewal of EAF Despite of stable sales volume,
Slide 18: FY2024 Quarterly consolidated forecast
FY2024 Quarterly consolidated forecast During the construction suspension period, both sales volume and revenue will decline as previous term, but after new EAF starts operating, sales volume is expected to increase, and revenue will also increase FY2024【Forecast】 （JPY Million） 1Ｑ 2Ｑ 3Ｑ 4Ｑ Full year
Slide 19: 1,128 Mn.Y Decrease in Profit
Factors for changes in Ordinary Profit guidance(Y/Y, Consolidated) （JPY Million） Loss on Scrap price： Effect of Increases by retirement of Increases by decrease in 13,000 tons electric furnace 1.0％ production： construction： －356 Sales price： －434 Decreases by 0.7％ 306 －672 －242 －520 Increase Metal I
Slide 20: Steel Product Sales Volume Trends
Steel Product Sales Volume Trends ＊The company‘s steel product sales volume(including external slabs sales) (tons) Steel Product Sales Volume Trends（Quarterly） 180,000 170,000 160,000 150,000 Plan 140,000 130,000 120,000 110,000 100,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2
Slide 21: Metal Spread Trends
Metal Spread Trends Index（％） ：Year average Metal Spread Trends Set 2020.1Q as 100 175 150 Plan 125 100 75 50 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 FY2022 FY2023 FY2024 ＊The spread between sales price of steel products and raw material payment price © 2024 Chubu St
Slide 22: Electricity Prices Trends
Electricity Prices Trends ：Year average Index（％） Electricity Prices Trends Set 2020.1Q as 100 300 250 200 Plan 150 100 50 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 FY2022 FY2023 FY2024 ＊Our electricity purchase price © 2024 Chubu Steel Plate Co., Ltd. 21
Slide 23: FY2024 Dividend policy
FY2024 Dividend policy Dividend policy 【Dividend policy in FY2024】 ■Provide stable shareholder returns without being affected by fluctuations in business performance ■Consider share buyback when business performance improves DOE3.5％ ＊Annual dividend for FY24 is expected to be around 101 yen/share Cu
Slide 24: FY2024 Dividend forecast
FY2024 Dividend forecast Dividend and payout ratio Stock price and Dividend yield Dividend policy change 110 Annual dividend（Yen：left） 50.0 3,000 6.00 Dividend payout ratio Stock price （Yen：left） payout ratio（％：right） conversion value Dividend yield(%:right) 100 104 48.0 101 5.01 Includes 5.00 90 44
Slide 25: Thank you for your attention
ec Thank you for your attention DOMUMTCHKRERBO kK PPM RASA
Slide 26: Reference materials
Reference materials © 2024 Chubu Steel Plate Co., Ltd. 25
Slide 27: Stock price trends
Stock price trends ■Our company listed on the Tokyo Stock Exchange Prime Market on December 28, 2022. Double listing on Nagoya Stock Exchange (Premier Market) ➢Stock prices rose significantly and trading volume increased 12,000 Stock trends（monthly） 3,000 Volume (left) 10,000 2,500 8,000 2,000 Volum
Slide 28: Quarterly performance trends
Quarterly performance trends FY2021 FY2022 FY2023 JPY Million 1Ｑ 2Ｑ 3Ｑ 4Ｑ 1Ｑ 2Ｑ 3Ｑ 4Ｑ 1Q 2Q ３Ｑ 4Ｑ Net sales 12,649 13,993 17,718 20,037 21,095 18,201 18,768 18,254 19,036 13,673 17,728 17,346 Cost of sales 11,232 12,053 14,137 16,147 17,110 13,863 13,771 13,747 14,234 11,519 13,212 13,102 Gross prof
Slide 29: Dividends/dividend payout ratio trends
Dividends/dividend payout ratio trends （yen） （％） 125 50 Year-end dividend interim dividend Payout ratio 45 100 40 75 35 50 30 25 25 0 20 2017 2018 2019 2020 2021 2022 2023 2024 (Forecast) Dividends ※1 ※2 19 17 30 18 43 104 91 (101) (left) Payout ratio 22.6 27.4 30.1 31.2 31.4 33.5 35.1 (44.8) (right
Slide 30: Chubu Steel Plate located in Nagoya City, Aichi Prefecture
Chubu Steel Plate Co.,Ltd is located in Nagoya City Aichi Prefecture is the center of Japanese manufacturing Advantageous position for raw material procurement and product shipping © 2024 Chubu Steel Plate Co., Ltd. 29