Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q1 2022 Earnings Presentation
27 slides from Sekisui Chemical's earnings presentation, Jul 28, 2022
Slide 1: Presentation of Financial Results for the 1Q of FY2022
SEKISUI CHEMICAL CO., LTD. Presentation of Financial Results for the 1Q of FY2022, ending March 31, 2023 Futoshi Kamiwaki Representative Director Senior Managing Executive Officer Head of Business Strategy Department July 28, 2022
Slide 2: 1Q FY2022 Results and 1H FY2022 Forecasts
1Q FY2022 Results and 1H FY2022 Forecasts FY2022 Forex Rate 1Q FY2021 1H FY2021 1Q FY2022 2Q FY2022 1H FY2022 (Initial Plan) Assumptions ¥115/US$ ¥133/US$ ¥126/US$ ¥115/US$ - - ¥131/€ ¥140/€ ¥136/€ ¥131/€ Results ¥109/US$ ¥110/US$ ¥130/US$ (Avg. rate for ‐ ‐ ‐ each term) ¥132/€ ¥131/€ ¥138/€ 1
Slide 3: Overview of 1Q FY2022 Results
Overview of 1Q FY2022 Results ∎Increases in net sales and operating profit ∎Secured a substantial increase in ordinary income as well as an increase in the bottom line due to a foreign exchange gain ∎Net sales progressed slightly above plans with operating profit essentially in line with plans 1Q FY
Slide 4: 1Q FY2022 Results: Net Sales and Operating Profit by Divisional Company
1Q FY2022 Results: Net Sales and Operating Profit by Divisional Company ∎Increases in 1Q net sales and profit at both the Groupwide level and in each segment • HPP*: Difficulties encountered in the Mobility field owing to stagnant automobile production; growing impact of soaring raw material costs o
Slide 5: Market Assumptions
Market Assumptions ∎ While automobile production and smartphone demand are projected to fall short of initial expectations, automobile production is forecast to exhibit a certain degree of recovery from the 2Q; raw material costs are anticipated to continue their surge in excess of expectations Numb
Slide 6: 1H FY2022 Forecasts: Net Sales and Operating Income by Divisional Company
1H FY2022 Forecasts: Net Sales and Operating Income by Divisional Company ∎ Soaring raw material and fuel costs projected to exceed initial expectations; focus on securing improvements in selling prices, expanding sales of high-performance products, and controlling fixed costs; expected to achieve o
Slide 7: 1H FY2022 Forecasts by Divisional Company (1Q & 2Q)
1H FY2022 Forecasts: Net Sales and Operating Income by Divisional Company (1Q & 2Q) ∎While net sales are projected to exceed plans owing mainly to the impact of foreign exchange and improvements in selling prices, operating profit is anticipated to come in in line with initial expectations after fac
Slide 8: 1H FY2022 Forecasts: Analysis
1H FY2022 Forecasts: Analysis ∎Improvements in selling prices and cost reductions to essentially offset the surge in raw material and fuel costs in excess of initial expectations; projected to achieve operating profit plans through efforts to control fixed costs and the effects of a foreign exchange
Slide 9: Overview of 1H FY2022 Forecasts
Overview of 1H FY2022 Forecasts ∎Upward revision in net sales ∎While operating profit is anticipated to come in in line with plans, upward revision in ordinary profit and the bottom line owing to a foreign exchange gain １H FY2022 1H FY2022 Plan 1H FY2021 Difference (Apr. 2022) Difference (Billions o
Slide 10: Overview of FY2022 Forecasts
Overview of FY2022 Forecasts ∎Upward revision on net sales, ordinary profit, and the bottom line ∎Operating profit anticipated to come in in line with plans FY2022 FY2022 Plan FY2021 Forecasts Difference (Apr. 2022) Difference (Billions of yen) (Jul. 2022) Net sales 1,157.9 1,260.7 +102.8 1,241.6 +1
Slide 11: HPP Company: 1H FY2022 Forecasts
HPP HPP Company : 1H FY2022 Forecasts Company ∎Improvements in selling prices, a shift to high-performance products, cost reductions, and other factors to offset stagnant global demand (automobile and smartphone production) as well as the growing impact of soaring raw material and fuel costs; projec
Slide 12: HPP Company: Three Strategic Fields
HPP HPP Company : Three Strategic Fields Company ∎ While automobile production and smartphone demand both fell below initial expectations, firm trends in construction material-related demand; focus on efforts to improve selling prices and expand sales of high-performance products; sales projected to
Slide 13: Housing Company: 1H FY2022 Forecasts
Housing Housing Company : 1H FY2022 Forecasts Company ∎ Firm trends in new housing orders, increase in the number houses sold; despite the continued surge in component costs, projected to achieve operating profit plans owing to efforts to control fixed costs • Housing: 1Q orders in line with plans;
Slide 14: Housing Company: New Housing Orders
Housing Housing Company : New Housing Orders Company ∎ Strengthening points of new customer contact through a variety of means including use of online (WEB-based) tools; focusing on increasing unit prices by vigorously promoting Smart House sales Customer and Order Trends Order Results and Plan Visi
Slide 15: UIEP Company: 1H FY2022 Forecasts
UIEP UIEP Company : 1H FY2022 Forecasts Company ∎Despite the ongoing impact of soaring raw material costs, take thoroughgoing steps to secure margins by improving selling prices; in projecting a certain degree of recovery in demand, expected to achieve 1H operating profit plans, which hit a record h
Slide 16: UIEP Company: Three Strategic Fields
UIEP UIEP Company : Three Strategic Fields Company ∎Sales projected to increase due mainly to the effects of improvement in selling prices in each of the three strategic fields Net Sales Trends and 1H Progress Advanced Materials • Sheets: Recovery trend in domestic and repair aircraft-related demand
Slide 17: Medical Business: 1H FY2022 Forecasts
Medical Medical Business : 1H FY2021 Forecasts Business ∎Despite delays in authorizing COVID-19 diagnostics kits (new product) in the U.S. and the impact of lockdowns in China, firm trends in the Diagnostics Reagents (Japan) and Pharmaceutical Sciences businesses ∎Working to control fixed costs, pro
Slide 18: Medical Business: Overview by Business
Medical Medical Business : Overview by Business Business ∎Continued recovery trend in outpatient test demand (Diagnostics) both in Japan and overseas; steady trends in the Pharmaceutical Sciences Business in line with plans Net sales by Business and Overview of Progress Diagnostics (overseas) Diagno
Slide 19: Financial Results
Financial Results 1Q FY2022 Number of Mar. 31, 2022 June 30, 2022 Consolidated Companies Consolidated Subsidiaries 155 155 Affiliates (Equity Method) 8 8 18
Slide 20: Summary of Profit and Loss
Summary of Profit and Loss (Billions of yen) 1Q FY2021 1Q FY2022 Difference Net sales 248.6 282.3 +33.7 Gross profit 77.9 84.5 +6.6 Gross profit margin 31.4% 30.0% -1.4% Selling, general and administrative expenses 66.8 70.7 +3.9 Operating profit 11.1 13.8 +2.7 Share of profit of entities accounted
Slide 21: Balance Sheets (Assets)
Balance Sheets (Assets) Jun.30 Inventories (B/S item) 2022 Difference Ready-built housing (products) 28.0 +2.2 Prepared land for subdivision Mar. 31, 2022 Jun. 30, 2022 Difference housing 54.6 -0.7 (Billions of yen) Land under preparation (work in process) 13.2 +2.7 Cash and deposits 144.5 107.7 -36
Slide 22: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (Billions of yen) Mar. 31, 2022 Jun. 30, 2022 Difference Non-interest-bearing liabilities 373.6 369.7 -3.9 Net income +14.6 Interest-bearing liabilities 122.6 123.6 +1.0 Dividends paid (Net interest-bearing liabilities) (-22.0) (-15.9) (+37.8) -11.1 Total li
Slide 23: Consolidated Cash Flows
Consolidated Cash Flows (Billions of yen) 1Q FY2021 1Q FY2022 Cash flows from operating activities 11.3 -2.1 Cash flows from investing activities 3.8 -10.2 Cash flows from financing activities -17.7 -28.5 Net increase in cash and cash equivalents -2.5 -37.6 Cash and cash equivalents at end of period
Slide 24: Depreciation, Amortization, Capital Expenditures, R&D Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure 1Q FY2021 1Q FY2022 Difference FY2021 FY2022 Plan Difference (Billions of yen) Depreciation 10.7 11.4 +0.8 44.3 47.5 +3.2 Goodwill and other amortization 1.6 0.6 -1.0 4.4 2.5 -1.9 Capital expenditures 11.9 16.4 +4
Slide 25: Housing Company Results and Plan: Main Data
Housing Company Results and Plan 1. Main data in Housing business 5 FY2022 FY2021 1H Forecasts 1H 2H 1Q 1Q Net Sales (Billions of yen) 115.7 263.0 105.5 249.8 265.4 Housing 76.6 178.7 68.7 171.6 183.1 CONSOLIDATED Renovation 21.2 48.1 20.6 45.9 46.2 Other 17.9 36.2 16.2 32.4 36.1 Real estate 12.8 26
Slide 26: Housing Company Results and Plan: Orders and Housing Starts
Housing Company Results and Plan 2. Housing orders FY2022 FY2021 FY2020 (Millions of yen) 1H Forecasts 1H 2H 1H 2H 1Q 1Q Year-start Backlog 185,000 ‐ 184,800 192,500 192,500 205,400 194,500 Growth Rate ±0% ‐ -10% -10% -1% -6% -11% New construction ・ New Orders 96,543 212,286 91,898 200,607 198,850 1
Slide 27: Forward-looking statements notice
This slide presentation may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statemen