Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — FY2023 Earnings Presentation
50 slides from Sekisui Chemical's earnings presentation, Apr 26, 2024
Slide 1: Presentation of Financial Results and the FY2024 Management Plan
SEKISUI CHEMICAL CO., LTD. For FY2023, ended March 31, 2024 Presentation of Financial Results and the FY2024 Management Plan Keita Kato President and CEO April 26, 2024
Slide 2: Main Points of Today's Presentation
Main Points of Today’s Presentation ★：Record high Compared Difference from Compared FY2023 FY2024 with Forecasts with Results Plan (JPY billion) FY2022 (January 2024) FY2023 Net sales ★ 1,256.5 +14.0 -5.8 ★ 1,326.7 +70.2 Operating profit 94.4 +2.7 -0.6 ★ 102.0 +7.6 Ordinary profit ★ 105.9 +1.7 +2.9
Slide 3: Drive 2.0 Progress
Drive 2.0 Progress 1. Investment Plan and Progress While progress in FY2023 was sluggish due to a slump in market conditions, increase in growth investment projects from FY2024 (JPY billion) Continue to search for M&A and other opportunities, focusing on growth areas Operating cash flows Debt +
Slide 4: Returns to Shareholders
Returns to Shareholders ▌ Continue to actively provide returns to shareholders in FY2024; plans for a fifteenth consecutive FY of dividend growth Previous Medium-term Medium-term Returns to Shareholders Track Record (JPY billion) Management Plan Management Plan Acquisition of treasury shares Dividen
Slide 5: FY2023 Results
FY2023 Results FY2022 FY2023 Forex rate 1H 2H 1H 2H In-house ¥146/US$ ‐ ‐ - assumptions ¥159/€ Futoshi Kamiwaki Results ¥134/US$ ¥137/US$ ¥141/US$ ¥148/US$ (Avg. rate for ¥139/€ ¥143/€ ¥153/€ ¥160/€ each term) Representative Director * Export data is subject to in-house assumptions regarding foreign
Slide 6: Overview of FY2023 Results
Overview of FY2023 Results ▌ Increase in net sales; second consecutive FY of record-high sales ▌ Increase in profit (operating profit, ordinary profit, and the bottom line) ▌ Record highs in ordinary profit and the bottom line owing mainly to foreign exchange gains and such factors as the gain on sa
Slide 7: FY2023 Results by Segment
FY2023 Results by Segment ▌ Substantial increase in HPP Company operating profit; record highs in HPP and UIEP operating profit; decreases in Housing Company and Medical Business operating profit • HPP*: Substantial increase in net sales and operating profit mainly in the Mobility field owing to the
Slide 8: 1H & 2H FY2023 Results by Segment
1H & 2H FY2023 Results by Segment ▌ Substantial increase in 2H HPP operating profit driven by the Mobility field; continued steady increase in UIEP operating profit; despite a downturn in Housing operating profit, impacted significantly by a drop in orders in the 1H, progress in promoting measures t
Slide 9: FY2023 Results Analysis
FY2023 Results Analysis ▌ Despite continued sluggish market conditions (delays in a recovery in housing market conditions in Japan and in semiconductor-related activities), secured increases in net sales and operating profit through thoroughgoing efforts to secure margins ▌ Despite a decline in sale
Slide 10: FY2024 Plan
FY2024 Plan FY2023 FY2024 Forex rate 1H 2H 1H 2H In-house ¥150/US$ ¥150/US$ assumptions ‐ ‐ ¥161/€ ¥161/€ Results ¥141/US$ ¥148/US$ (Avg. rate for - - each term) ¥153/€ ¥160/€ * Export data is subject to in-house assumptions regarding foreign currency exchange rates. A ¥1 depreciation in the value o
Slide 11: FY2024 Plan: Overview and Returns to Shareholders
FY2024 Plan: Overview and Returns to Shareholders ▌ Planning increases in net sales and profit (operating profit, ordinary profit, and bottom line) ▌ Target record-high net sales, operating profit and bottom line ▌ Plan to pay a dividend per share of ¥75, up ¥1 (fifteenth consecutive FY of dividend
Slide 12: Outlook for Market Conditions
Outlook for Market Conditions Number of Automobiles Manufactured (YoY) Housing・Visitors (YoY) 4Q FY2023: Results slightly below expectations 2H FY2023: Recovery in the number of overall visitors essentially in FY2024: Forecasts at the same level as the previous year line with the previous year FY202
Slide 13: FY2024 Plan by Segment
FY2024 Plan by Segment ▌ Increases in net sales and operating profit in each segment; plans for record- high segment operating profit excluding the Housing Company • HPP: Forecasting growth in the Mobility field and a recovery in Electronics-related demand focusing on semiconductors; plans for a sub
Slide 14: 1H & 2H FY2024 Plans by Segment
1H & 2H FY2024 Plans by Segment ▌ Forecasting a modest recovery in market conditions; secure an increase in net sales and operating profit with the HPP Company continuing to drive the Group as a whole in the 1H; plans for an increase in net sales and operating profit across all segments in the 2H ▌
Slide 15: FY2024 Plan Analysis
FY2024 Plan Analysis ▌ Expecting a gradual recovery in global market conditions as well as housing market conditions in Japan; forecasting a substantial increase in sales volumes and product mix on the back of high-performance product sales growth and efforts to cultivate new customers ▌ Despite exp
Slide 16: Consolidated Performance
Consolidated Performance ▌ Continue to work toward business portfolio reform and accelerate the shift to further growth; target operating profit of ¥102 billion (JPY billion) EBITDA 119.9 119.3 126.7 133.4 137.7 137.3 133.2 116.6 137.6 142.1 147.1 159.0 1,326.7 1,242.5 1,256.5 1,157.9 1,142.7 1,129.
Slide 17: Financial Results FY2023
Financial Results FY2023 Tatsuya Nishida Managing Executive Officer Head of Corporate Finance & Accounting Department 16
Slide 18: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2023 Mar. 31, 2024 Difference Consolidated Increased: 0 Subsidiaries subsidiaries 148 143 Decreased: 5 Subsidiaries*1 Affiliates Increased: 0 Subsidiaries 7 6 (Equity Method) Decreased: 1 Subsidiary*2 *1 Sekisui (Shanghai) Environmenta
Slide 19: Summary of Profit and Loss
Summary of Profit and Loss + FY2022 FY2023 Difference (JPY billion) Foreign exchange gains: +5.2 Net sales 1,242.5 1,256.5 +14.0 Gross profit 377.2 392.2 +15.0 Foreign exchange gains: +7.0 Gross profit margin 30.4% 31.2% +0.9% Selling, general and administrative expenses 285.6 297.8 +12.2 Exclusion
Slide 20: Balance Sheets (Assets)
Balance Sheets (Assets) Mar.31 Inventories (B/S item) 2024 Difference Ready-built housing (products) 38.0 +5.3 Prepared land for subdivision Mar. 31, 2023 Mar. 31, 2024 Difference housing 67.7 +3.5 (JPY billion) Land under preparation (work in process) 10.5 +0.5 Cash and deposits 101.1 138.6 +37.5 H
Slide 21: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (JPY billion) Mar. 31, 2023 Mar. 31, 2024 Difference Non-interest-bearing liabilities 375.1 381.6 +6.4 Net profit: +77.9 Interest-bearing liabilities 120.5 120.7 +0.3 Dividends paid: -27.8 [Net interest-bearing liabilities] [19.4] [-17.8] [-37.2] Total liabi
Slide 22: Consolidated Cash Flows
Consolidated Cash Flows (JPY billion) FY2022 FY2023 Cash flows from operating activities 71.5 106.6 Cash flows from investing activities -59.4 -18.5 Cash flows from financing activities -62.9 -53.0 Net increase in cash and cash equivalents -48.5 41.2 Cash and cash equivalents at end of period 85.2 1
Slide 23: Depreciation, Amortization, Capital Expenditures and EBITDA
Depreciation, Amortization, Capital Expenditures and EBITDA ★：Record high Goodwill and other Depreciation*1 Capital expenditures EBITDA*3 amortization*2 Differ- Differ- Differ- Differ- FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 ence ence ence ence (JPY billion) Housing 11.1 11.6 +0.5 0.
Slide 24: Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure ★：Record high FY2024 FY2023 Difference (JPY billion) Plan Depreciation 50.0 54.3 +4.3 Goodwill and other amortization 2.7 2.7 0 Capital expenditures 60.6 75.0 +14.4 EBITDA 147.1 ★ 159.0 +11.9 Research and developm
Slide 25: High Performance Plastics Company
High Performance Plastics Company Ikusuke Shimizu Company President 24
Slide 26: HPP Company Performance Trends
HPP Performance Trends Company ▌ FY2023: Substantial increases in both net sales and operating profit mainly in the Mobility field owing to the effects of an upswing in demand and high-performance product sales growth ▌ FY2024: Plans for an increase in net sales and a record-high in operating profit
Slide 27: HPP FY2023 Results Analysis
HPP FY2023 Results Analysis Company ▌ Despite continued sluggish demand in the Industrial field, increase in sales volumes and product mix focusing on the Mobility field; substantial increase in net sales and operating profit on the back of an increase in margins and contributions from foreign excha
Slide 28: HPP Overview of FY2024 Plan
HPP Overview of FY2024 Plan Company ▌ In addition to continued firm trends in the Mobility field, Electronics-related demand forecast to recover focusing on semiconductors; substantial increase in sales volumes and product mix; plans for an increase in net sales and operating profit by offsetting th
Slide 29: HPP Three Strategic Fields
HPP Three Strategic Fields Company Net Sales Trends and KPIs in the Three Strategic Fields Growth Growth 11 businesses clarified as strengthening the current PF driving potential in the Drive 2.0 Medium-term Management Plan. Electronics Mobility Molding products, Electronics (semiconductor and Mobil
Slide 30: Housing Company
Housing Company Masahide Yoshida Company President 29
Slide 31: Housing Company Performance Trends
Housing Performance Trends Company ▌ FY2023: Decrease in net sales and operating profit owing to the prolonged slump in new housing construction market conditions and the substantial impact of soaring component costs ▌ FY2024: Conditions throughout the new housing construction market expected to exh
Slide 32: Housing FY2023 Results Analysis
Housing FY2023 Results Analysis Company ▌ While operating profit in the Renovation Business increased on the back of successful efforts to capture firm demand by strengthening the personnel structure, operating profit declined substantially in overall terms owing to a downturn in the number of house
Slide 33: Housing Overview of FY2024 Plan
Housing Overview of FY2024 Plan Company ▌ Expecting a modest recovery in Housing Business market conditions; despite a decrease in the number of houses sold, net sales essentially in line with the previous year owing to an increase in unit prices; plans for an increase in operating profit due to the
Slide 34: Housing KPIs by Business and Measures to Strengthen Profitability
Housing KPIs by Business and Measures to Strengthen Profitability Company Housing Business Renovation Business New Housing Orders (YoY) Number of Orders by Type of Construction (YoY) Orders by Renovation Product • FY2023: New housing orders slightly exceeded • Steady increase in orders by strengthen
Slide 35: Urban Infrastructure & Environmental Products Company
Urban Infrastructure & Environmental Products Company Yoshiyuki Hirai Company President 34
Slide 36: UIEP Company Performance Trends
UIEP Performance Trends Company ▌ FY2023: Despite a decrease in housing demand and stagnant construction market conditions, increase in net sales and operating profit owing to thoroughgoing efforts to secure margins and expand sales of prioritized products; second consecutive FY of record-high opera
Slide 37: UIEP FY2023 Results Analysis
UIEP FY2023 Results Analysis Company ▌ Despite a decline in housing demand in Japan and stagnant non-residential market conditions, took thoroughgoing steps to secure margins; also controlled fixed costs and secured an increase in net sales and operating profit; results fell below forecasts (January
Slide 38: UIEP Overview of FY2024 Plan
UIEP Overview of FY2024 Plan Company ▌ While housing and non-residential market conditions in Japan are expected to remain stagnant in the 1H, projecting a gradual recovery from the 2H ▌ Plans for an increase in net sales and operating profit by improving selling prices in response to the upswing in
Slide 39: UIEP Three Strategic Fields
UIEP Three Strategic Fields Company Net sales in the Three Strategic Fields and KPI’s Building and Performance Construction and Fire resistant and non- Pipe Systems materials (railroad flammable materials industrial piping Infrastructures Composite Materials sleepers, etc.) Pipe and joint materials
Slide 40: Medical Business
Medical Business Eiichi Takahashi President of SEKISUI MEDICAL CO., LTD 39
Slide 41: Medical Business Performance Trends
Medical Performance Trends Business ▌ FY2023: Despite an increase in net sales owing to higher diagnostics demand in Japan, firm trends in new pharmaceutical ingredients, and the impact of foreign exchange, decrease in operating profit due to such factors as the substantial impact of the decline in
Slide 42: Medical FY2023 Results Analysis
Medical FY2023 Results Analysis Business ▌ Increase in demand for infectious disease testing in Japan and firm trends in new pharmaceutical ingredients; despite an upswing in overseas sales on the back of an increase in sales of blood coagulation reagents in China, decrease in operating profit owing
Slide 43: Medical Overview of FY2024 Plan
Medical Overview of FY2024 Plan Business ▌ Target a substantial increase in net sales and record-high operating profit by capturing continued strong demand for diagnostics reagents and increasing sales of new pharmaceutical ingredients in Japan, while focusing on expanding sales of blood coagulation
Slide 44: Medical Overview by Business
Medical Overview by Business Business Net sales by Business and Overview of Progress Overseas testing Diagnostics (Japan) Diagnostics (overseas) system • FY2023: Increase in demand for infectious disease testing • FY2023: Despite a drop in sale for such products as COVID-19 diagnostics kits in the U
Slide 45: 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 46: Housing Company Results and Plan
Housing Company Results and Plan 1. Main data in Housing business 5ｚｚｚｚｚｚｚｚｚｚｚｚｚ FY2023 FY2022 1H 2H Full Year 1H 2H Full Year Net sales (JPY billion) 264.8 264.9 529.7 260.2 277.2 537.4 Housing 175.3 172.7 348.0 177.2 186.4 363.6 CONSOLIDATED Renovation 50.9 52.4 103.3 47.0 50.3 97.3 Other 38.6 39.
Slide 47: Housing Company Results and Plan: Orders and Starts
Housing Company Results and Plan 2. Housing orders FY2024 Plan FY2023 FY2022 (Millions of yen) 1H 2H Full Year 1H 2H Full Year 1H 2H Full Year New construction ・Renovation Year-start Backlog 139,200 137,000 - 164,300 147,200 - 185,000 186,900 - Growth Rate -15% -7% - -11% -21% - ±0% -3% - New Orders
Slide 48: Various Performance Data
Various Performance Data Group-wide FY2023 FY2022 ■Net Sales (JPY billion) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q HPP 96.1 104.2 106.0 106.6 99.1 102.4 97.9 97.0 Housing 121.0 143.8 126.7 138.1 115.7 144.5 129.0 148.2 UIEP 51.3 58.4 59.8 65.3 50.1 60.3 59.2 64.7 Medical 20.5 23.2 23.7 25.3 20.6 22.3 22.4 24.4 HPP
Slide 49: Various Performance Data
Various Performance Data Industrial field 2023年度 2022年度 ■Net Sales (JPY billion) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Labor-saving product 4.9 5.2 4.8 5.6 6.0 5.6 4.8 5.3 Environmentally friendly product 1.7 2.1 2.0 2.2 1.9 1.9 2.1 2.1 Housing 2023年度 2022年度 ■Net Sales (JPY billion) 上期 下期 上期 下期 Housing 6.7 7.9 9.
Slide 50: SEKISUI
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