Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q3 2022 Earnings Presentation
31 slides from Sekisui Chemical's earnings presentation, Jan 30, 2023
Slide 1: Presentation of Financial Results
SEKISUI CHEMICAL CO., LTD. For 3Q FY2022, ending March 31, 2023 Presentation of Financial Results Futoshi Kamiwaki Representative Director Senior Managing Executive Officer January 30, 2023
Slide 2: Results for 3Q and Forecasts for FY2022: Forex Rate
Results for 3Q and Forecasts for FY2022 FY2021 FY2022 Forex Rate 2H Plan 3Q 4Q 2H 3Q 4Q 2H （Oct.) Assumptions ¥135/US$ ¥136/US$ ¥139/US$ ¥135/US$ ‐ ‐ ‐ ¥137/€ ¥144/€ ¥144/€ ¥137/€ Results ¥114/US$ ¥115/US$ ¥115/US$ ¥142/US$ (Avg. rate for ‐ ‐ each term) ¥130/€ ¥130/€ ¥130/€ ¥144/€ * Export data is s
Slide 3: Overview of 3Q FY2022 Results
Overview of 3Q FY2022 Results ▌ Increases in net sales and operating profit in the 3Q; decreases ordinary profit and the bottom line owing mainly to the impact of foreign exchange losses ▌ sales and operating profit fell slightly below plans (Oct.) ▌ Increases in net sales and profit (operating prof
Slide 4: 3Q FY2022 Results by Segment
3Q FY2022 Results by Segment ▌ Despite the substantial impact of another wave of COVID-19 in Japan and China as well as the drop in global demand associated with inflation, secured increases in net sales and operating profit through improvements in selling prices • HPP: Substantial impact from the d
Slide 5: Outlook for Market Conditions
Outlook for Market Conditions ▌ While automobile production in the 2H is essentially in line with expectations (Oct.), smartphone trends are projected to fall substantially below anticipated levels due to prolonged sluggish demand; raw material prices also trending below expectations Number of Autom
Slide 6: 2H FY2022 Forecasts by Segment
2H FY2022 Forecasts by Segment ▌ Groupwide net sales and profit projected to increase in the 2H; both net sales and operating profit forecast to come in slightly below plans (Oct.) ▌ Downward revision in net sales and operating profit (operating profit down ¥5 billion) ▌ Expecting to secure an incre
Slide 7: 3Q & 4Q FY2022 Forecasts by Segment
3Q & 4Q FY2022 Forecasts by Segment ▌ While results in the 4Q are also expected to be significantly impacted by stagnant global demand for such items as smartphones, expected to secure an increase in profit by focusing on efforts aimed at securing margins as surges in raw material prices peak out 4Q
Slide 8: 2H FY2022 Forecasts Analysis
2H FY2022 Forecasts Analysis ▌ Net sales and profit forecast to increase on the back of improvements in selling prices and trends in foreign currency exchange rates; despite focusing on efforts to secure margins, Groupwide results forecast to come in slightly below plans (Oct.) owing to the impact o
Slide 9: FY2022 Forecasts by Segment
FY2022 Forecasts by Segment ▌ Despite securing increases in net sales and profit Groupwide and in each segment, operating profit forecast to fall slightly below plans (Oct.) excluding the Medical Business ▌ Projecting record high fiscal year profits in the UIEP and Medical segments FY2022 FY2022 FY2
Slide 10: Reference: FY2022 Forecasts by Segment (After Portfolio Reorganization)
<Reference> FY2022 Forecasts by Segment (After Portfolio Reorganization) ▌ Post business portfolio optimization quantitative data (reference) ▌ Work to maximize synergy creation over the next medium term FY2022 FY2022 FY2021 Difference Difference Forecasts Plan (Oct.) Net Operating Net Operating Net
Slide 11: Overview of FY2022 Forecasts
Overview of FY2022 Forecasts ▌ Projecting increases in Groupwide net sales and at each level of profit ▌ Despite net sales, operating profit, and ordinary profit falling slightly below plans (Oct.), the bottom line forecast to come in in line with plans ▌ Ordinary profit and the bottom line forecast
Slide 12: Progress under the Medium-term Management Plan, Drive 2022
Progress under the Medium-term Management Plan, Drive 2022 ▌ Ongoing efforts to strengthen the Company’s business structure (earning power); shift to growth toward the next Medium-term Plan (JPY Billion) FY2009-2013 FY2014-2016 FY2017-2019 FY2020-2022 Drive2022 EBITDA 70.5 86.6 93.1 97.7 119.9 119.3
Slide 13: HPP: 2H FY2022 Forecasts Analysis
HPP HPP: 2H FY2022 Forecasts Analysis Company ▌ Substantial decreases in sales volumes and product mix owing to the spread of COVID- 19 in China and the impact of a drop in demand mainly in Europe; despite securing profit growth on the back of an increase in margins due to the reduced impact of soar
Slide 14: HPP: Three Strategic Fields
HPP Three Strategic Fields Company ▌ Difficulties due to a drop in demand in the Electronics field mainly in China and a delay in recovery; despite progress in the Mobility field in line with plans, trends in the Building and Infrastructure field below expectations owing to weak construction demand;
Slide 15: Housing: 2H FY2022 Forecasts Analysis
Housing Housing: 2H FY2022 Forecasts Analysis Company ▌ 3Q: Despite a decline in new housing orders owing to such factors as COVID-19, inflation, and a deterioration in market conditions amid the continued surge in component costs, secured an increase in profit on the back of efforts to maximize the
Slide 16: Housing: New Housing Orders
Housing New Housing Orders Company ▌ Despite the impact of COVID-19 and deterioration in market conditions, number of visitors on a recovery trend in the 3Q; focus on securing sales in the 4Q while working to secure orders in line with the previous year by strengthening the subdivision and ready-bui
Slide 17: UIEP: 2H FY2022 Forecasts Analysis
UIEP UIEP: 2H FY2022 Forecasts Analysis Company ▌ Despite housing market conditions to fall below expectations, projecting an increase in profit by focusing on efforts to expand sales of prioritized products and maintain margins; projecting record high profit in the 2H • Japan: Undertake thoroughgoi
Slide 18: UIEP: Three Strategic Fields, Prioritized Products, Overseas Sales
Three Strategic Fields, Prioritized Products, Overseas Sales UIEP Company ▌ Full fiscal year sales projected to increase due to the effects of improvements in selling prices in each of the three strategic fields Net sales in the Three Strategic Fields Advanced Materials Piping and Infrastructure • S
Slide 19: Medical: 2H FY2022 Forecasts Analysis
Medical Medical: 2H FY2022 Forecasts Analysis Business ▌ Increase in diagnostics demand in Japan and overseas together with a firm Pharmaceutical Sciences Business to offset the impact of lockdowns in China and delays in authorizing COVID-19 diagnostics kits in the U.S.; projecting record high profi
Slide 20: Medical: Overview by Business
Medical Overview by Business Business ▌ Trends in the Diagnostics Business in Japan and overseas exceeding plans (Oct.); Pharmaceutical Sciences Business also forecast to slightly exceed plans (Oct.) Net sales by Business and Overview of Progress Diagnostics (overseas) • 3Q: Growing impact of the dr
Slide 21: Financial Results 3Q FY2022
Financial Results 3Q FY2022 20
Slide 22: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2022 Dec. 31, 2022 Difference Consolidated Increased: 1 Subsidiary*1 subsidiaries 155 150 Decreased: 6 Subsidiaries*2 Affiliates Increased: 0 Subsidiaries 8 7 (Equity Method) Decreased: 1 Subsidiary*1 *1 Tochigi Sekisui Heim Co., Ltd.,
Slide 23: Summary of Profit and Loss
Summary of Profit and Loss + 1Q-3Q 1Q-3Q Difference (JPY Billion) FY2021 FY2022 Net sales 838.7 912.2 +73.6 Gross profit 259.8 276.8 +17.0 Gross profit margin 31.0% 30.3% -0.6% Selling, general and administrative expenses 202.3 214.4 +12.0 Operating profit 57.5 62.5 +5.0 Share of profit of entities
Slide 24: Balance Sheets (Assets)
Balance Sheets (Assets) Dec.31 Inventories (B/S item) 2022 Difference Ready-built housing (products) 31.5 +5.8 Prepared land for subdivision Mar. 31, 2022 Dec. 31, 2022 Difference housing 59.3 +4.0 (JPY Billion) Land under preparation (work in process) 9.3 -1.2 Housing under construction Cash and de
Slide 25: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (JPY Billion) Mar. 31, 2022 Dec. 31, 2022 Difference Non-interest-bearing liabilities 373.6 375.6 +2.0 Net profit +52.8 Interest-bearing liabilities 122.6 132.2 +9.6 Dividends paid [Net interest-bearing liabilities] [-22.0] [-37.5] [+59.5] -23.8 Total liabil
Slide 26: Consolidated Cash Flows
Consolidated Cash Flows (JPY Billion) 1Q-3Q FY2021 1Q-3Q FY2022 Cash flows from operating activities 65.7 34.1 Cash flows from investing activities 17.6 -41.2 Cash flows from financing activities -53.1 -47.5 Net increase in cash and cash equivalents 31.2 -53.3 Cash and cash equivalents at end of per
Slide 27: Depreciation, Amortization, Capital Expenditures, R&D Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure 1Q-3Q 1Q-3Q FY2022 Difference FY2021 Difference (JPY Billion) FY2021 FY2022 Forecasts Depreciation*1 32.8 35.6 +2.8 44.3 47.5 +3.2 Goodwill and other amortization*2 3.8 1.9 -1.9 4.4 2.5 -1.9 Capital expenditures 3
Slide 28: Forward-looking statements
This slide presentation contains forward-looking statements. These statements are based on current expectations and beliefs. However, actual results may differ from those expressed or implied due to a number of factors and uncertainties such as changes in the global economy and our business, competi
Slide 29: Housing Company Results and Plan
Housing Company Results and Plan * Including Tochigi Sekisui Heim Co., Ltd. newly consolidated in December 1. Main data in Housing business 5ｚｚｚｚｚｚｚｚｚｚｚｚｚ FY2022 FY2021 2H Full Year FY2020 1H 1H 2H Full Year 3Q Forecasts Forecasts 3Q Net sales (JPY billion) 260.2 129.0 282.8 543.0 249.8 123.3 265.4
Slide 30: Housing Company Results and Plan: Housing Orders
Housing Company Results and Plan 2. Housing orders FY2022 FY2021 FY2020 2H Full Year Full Full (Millions of yen) 1H 1H 2H 1H 2H 3Q Forecasts Forecasts 3Q Year 3Q Year New construction ・Renovation Year-start Backlog 185,000 186,900 186,900 - 184,800 192,500 192,500 - 205,400 194,500 194,500 - Growth
Slide 31: SEKISUI
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