Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q2 2021 Earnings Presentation
48 slides from Sekisui Chemical's earnings presentation, Oct 28, 2021
Slide 1: Presentation of Financial Results: Progress under Management Plan
SEKISUI CHEMICAL CO., LTD. Presentation of Financial Results Progress under Management Plan for 2Q FY2021, ending March 31, 2022 Keita Kato President October 28, 2021
Slide 2: Results for 1H FY2021: Forex Rate Assumptions
Results for 1H FY2021 FY2021 Forex Rate 1H FY2020 1H FY2021 Initial Plan Assumptions ¥109/US$ ¥108/US$ ¥105/US$ ¥121/€ ¥130/€ ¥127/€ Results ¥107/US$ ¥110/US$ (Avg. rate for ‐ each term) ¥121/€ ¥131/€ 1
Slide 3: Overview of 1H FY2021 Results
Overview of 1H FY2021 Results ∎Despite the prolonged impact of COVID-19 and growing effects attributable to soaring raw material prices, substantial increase in Groupwide sales; significant upswing in operating income ∎Operating income and ordinary income exceeded forecasts (July) ∎Posted a loss on
Slide 4: 1H FY2021 Results: Net Sales and Operating Income by Divisional Company
1H FY2021 Results: Net Sales and Operating Income by Divisional Company ∎ Despite the prolonged impact of COVID-19, higher-than-anticipated surge in raw material prices, and the growing effect of shortages in semiconductor supply, substantial increase in operating income in each segment, exceeding f
Slide 5: 1Q & 2Q FY2021 Results by Divisional Company
1Q & 2Q FY2021 Results: Net Sales and Operating Income by Divisional Company ∎Despite the growing impacts of surging raw material prices and shortages in semiconductor supply, secured increases in both sales and profits in each segment in the 2Q 1Q FY2020 1Q FY2021 2Q FY2020 2Q FY2021 Net Operating
Slide 6: 1H FY2021 Results: Analysis
1H FY2021 Results: Analysis ∎Higher-than-anticipated surges in raw material prices offset by a variety of factors including substantial increases in sales volumes and product mix, improvements in selling prices, and successful efforts to reduce fixed costs; substantial increases in Groupwide sales a
Slide 7: SEKISUI AEROSPACE CORPORATION Overview and Outlook
SEKISUI AEROSPACE CORPORATION Overview and Outlook ∎ Acquired SEKISUI AEROSPACE CORPORATION (November 2019 for Accelerate Portfolio Reform and Synergy Development ¥54.4 billion) for the purpose of entering the aerospace field in earnest Despite posting an impairment loss, working to reform the portf
Slide 8: FY2021 Revised Annual and 2H Plans
FY2021 Revised Annual and 2H Plans 2H FY2021 FY2021 Forex Rate 2H FY2020 Plan Initial Plan Assumptions ¥105/US$ ¥110/US$ ¥105/US$ ¥126/€ ¥129/€ ¥127/€ Results ¥105US$ (Avg. rate for ‐ ‐ each term) ¥126/€ . 7
Slide 9: Outlook for Market Conditions
Outlook for Market Conditions ∎Automotive demand lower than assumptions at the beginning of the period; stable trends in smartphone market conditions; raw material prices projected to surge even further Number of Automobiles Manufactured (YoY) Housing・Visitors (FY19YoY) Forecast to fall short of ass
Slide 10: 2H FY2021 Revised Plan: Net Sales and Operating Income by Divisional Company
2H FY2021 Revised Plan: Net Sales and Operating Income by Divisional Company ∎ Overcome the risks of a further surge in raw material prices and the prolonged impact of shortages in semiconductor supply by improving selling prices, improving the product mix by expanding sales of high-performance prod
Slide 11: 2H FY2021 Revised Plan: Analysis
2H FY2021 Revised Plan: Analysis ∎Minimize the impact of a further surge in raw material prices by improving selling prices and through cost reductions; despite the prolonged impact of shortages in semiconductor supply, increase in the number of new houses sold while promoting improvements in the pr
Slide 12: FY2021 Revised Plan: Net Sales and Operating Income by Divisional Company
FY2021 Revised Plan: Net Sales and Operating Income by Divisional Company ∎Substantial increases in both sales and profits in each segment; upward revision of Groupwide net sales and operating income ∎Continue to strengthen preparation in a bid to realize the Long-term Vision 2030 FY2020 FY2021 Diff
Slide 13: Overview of FY2021 Revised Plan
Overview of FY2021 Revised Plan ∎ Substantial increases in net sales, operating income, and ordinary income; upward revision in net sales, operating income, and ordinary income from initial plans (April); projected to exceed FY2019 levels ∎ As far as the bottom line is concerned, despite a downward
Slide 14: Intentionally Blank
Intentionally Blank SEKISUI
Slide 15: High Performance Plastics Company
High Performance Plastics Ikusuke Shimizu Company Company President 14
Slide 16: HPP: Overview of FY2021 1H Results and 2H Forecasts
HPP Overview of FY2021 1H Results and 2H Forecasts Company ∎ Despite a higher-than-anticipated surge in raw material prices and the growing impact of shortages in semiconductor supply, substantial increases in both sales and profits on the back of increases in sales volumes and product mix in the 1H
Slide 17: HPP: 1H FY2021 Results: Analysis
HPP 1H FY2021 Results: Analysis Company ∎Despite a higher-than-anticipated surge in raw material prices and the growing impact of shortages in semiconductor supply, achieved increases in both sales and profits on the back of increases in sales volumes and product mix mainly in the three strategic fi
Slide 18: HPP: 2H FY2021 Revised Plan: Analysis
HPP 2H FY2021 Revised Plan: Analysis Company ∎Minimize the impact of surges in raw material prices that are substantially exceeding initial forecasts through a variety of measures including improving selling prices and cost reductions; projecting an increase in profits by expanding sales of high-per
Slide 19: HPP: Three Strategic Fields and Cost Innovation
HPP Three Strategic Fields and Cost Innovation Company ∎ Full fiscal year sales projected to increase in each of the three strategic fields; offset the impact of surges in raw material prices by improving selling prices; steady trends in the Electronics as well as Building and Infrastructure fields;
Slide 20: HPP: Growth Engines
HPP Growth Engines Company ∎Strengthen the rollout of measures aimed at sustainable growth in each of the three strategic fields; also focus on fostering next-generation growth domains Progress of Growth Measures in the Three Fields Mobility 〜 High-performance interlayer film sales growth Electronic
Slide 21: Housing Company
Toshiyuki Kamiyoshi Housing Company Company President 20
Slide 22: Housing: Overview of FY2021 1H Results and 2H Forecasts
Overview of FY2021 1H Results and 2H Forecasts Housing Company ∎Despite the surge in component costs, achieved operating income in line with plans (July) on the back of robust orders and cost reductions in the 1H ∎Offset the growing impact of a surge in component costs through an increase in the num
Slide 23: Housing: 1H FY2021 Results: Analysis
1H FY2021 Results: Analysis Housing Company ∎Offset the impact of delays in processing as well as the surge in component costs through cost reductions; achieved forecast (July) operating income • Housing: Offset the impact of a surge in component costs by increasing the number of houses sold focusin
Slide 24: Housing: 2H FY2021 Revised Plan: Analysis
2H FY2021 Revised Plan: Analysis Housing Company ∎ Despite the growing impact of surges on component costs, target substantial increases in both sales and profits by increasing the number of houses sold focusing mainly on smart houses as well as cost reductions • Housing: Increase in the number of h
Slide 25: Housing: New Housing Orders
New Housing Orders Housing Company ∎ Developments in the three key measures aimed at generating growth (sales force, product strategies, and land strategies) driven by the 50th anniversary project ∎ Work toward securing orders in excess of FY19 in the 2H Customer and Order Trends Order Results and P
Slide 26: Stock Business (Renovation, Real Estate), Town and Community Development
Stock Business (Renovation, Real Estate), Housing Town and Community Development Company ∎ Secure renovation orders in excess of FY19 by strengthening each measure including periodic diagnosis Stock Business (Renovation) * %: YoY Stock Business (Real Estate) Expand periodic diagnosis Orders by Produ
Slide 27: Urban Infrastructure & Environmental Products Company
Urban Infrastructure & Yoshiyuki Hirai Environmental Products Company Company President 26
Slide 28: UIEP: Overview of FY2021 1H Results and 2H Forecasts
UIEP Overview of FY2021 1H Results and 2H Forecasts Company ∎ Despite the surge in raw material prices and delays in the recovery of domestic non-residential demand, achieved an increase in profits in the 1H owing to improvements in selling prices, expansion of prioritized product sales, and success
Slide 29: UIEP: 1H FY2021 Results: Analysis
UIEP 1H FY2021 Results: Analysis Company ∎ Despite the surge in raw material prices, delays in the recovery of non-residential demand, and the effects of delays in construction projects due to the prolonged impact of COVID-19, exceeded operating income plans (July) owing to improvements in selling p
Slide 30: UIEP: 2H FY2021 Revised Plan: Analysis
UIEP 2H FY2021 Revised Plan: Analysis Company ∎ Surges in raw material prices that exceeded initial expectations offset through margins secured by improving selling prices, forecasts of a certain degree of improvement in market conditions, expansion of prioritized product as well as overseas sales,
Slide 31: UIEP: Three Strategic Fields and Structural Reforms
UIEP Three Strategic Fields and Structural Reforms Company ∎Projecting an increase in full fiscal year sales (actual) in each of the three strategic fields Net Sales in the Three Strategic Fields Advanced Materials • Sheets: Aircraft-related demand on a modest recovery path; steady progress Piping a
Slide 32: UIEP: Growth Strategy (Prioritized Products, Overseas)
UIEP Growth Strategy (Prioritized Products, Overseas) Company Expansion of Prioritized Products Product Examples Prioritized Products Sales (Japan) Address Labor Saving and Address Growth Field Climate Change Easy Installation Climate Change • Steady trends in each field; projecting substantial grow
Slide 33: Medical Business
Futoshi Kamiwaki Medical Business Director, Senior Managing Executive Officer Head of Business Strategy Department 32
Slide 34: Medical: Overview of FY2021 1H Results and 2H Forecasts
Overview of FY2021 1H Results and 2H Forecasts Medical Business ∎Substantial increases in both sales and profits on the back of a steady recovery in diagnostics demand in Japan and overseas in the 1H; achieved record-high 1H profits ∎Achieve full fiscal year operating income of ¥10 billion in line w
Slide 35: Medical: 1H FY2021 Results: Analysis
Medical 1H FY2021 Results: Analysis Business ∎Exceeded operating income forecasts (July) owing to the steady recovery in diagnostics demand in Japan and overseas ∎Results came in in line with forecasts (July) in the Pharmaceutical and Sciences Business Net Sales Analysis of Operating Income (Billion
Slide 36: Medical: 2H FY2021 Revised Plan: Analysis
Medical 2H FY2021 Revised Plan: Analysis Business ∎Projecting Diagnostics Business expansion in Japan and overseas on the back of a continued recovery in diagnostics demand; despite a drop in infectious disease testing demand in the U.S., both sales and profits forecast to increase substantially owi
Slide 37: Medical: Overview by Business
Medical Overview by Business Business ∎In addition to firm diagnostics demand, new pharmaceutical ingredients also contributing to profits; accelerating growth through proactive investment Net Sales by Business and Overview of Progress Diagnostics (overseas) Diagnostics (Japan) • 1H: Recovery in mar
Slide 38: Financial Results 2Q FY2021
Financial Results 2Q FY2021 37
Slide 39: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2021 Sept. 30, 2021 Difference Consolidated Increased: 0 Subsidiaries Subsidiaries 161 159 Decreased: 2 Subsidiaries*1 Affiliates Increased: 0 Subsidiaries (Equity Method) 8 8 Decreased: 0 Subsidiaries *1 Muhan Co., Ltd., SEKISUI SYSTE
Slide 40: Summary of Profit and Loss
Summary of Profit and Loss 1H FY2020 1H FY2021 Difference (Billions of yen) Net Sales 490.0 547.9 +57.9 Gross Profit 151.9 169.9 +18.1 Gross Profit Margin 31.0% 31.0% 0% Selling, Gen. and Admin. Expenses 129.5 134.4 +5.0 Operating Income 22.4 35.5 +13.1 Equity in Earnings of Affiliates 1.0 1.5 +0.5
Slide 41: Balance Sheets (Assets)
Balance Sheets (Assets) Spt. 30, Inventories (B/S item) 2021 Difference Ready-built housing (products) 28.2 +0.9 Prepared land for subdivision Mar. 31, 2021 Sept. 30, 2021 Difference housing 56.6 -2.2 (Billions of yen) Land under preparation (work in process) 12.1 -2.3 Cash and Deposits 87.5 136.1 +
Slide 42: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (Billions of yen) Mar. 31, 2021 Sept. 30, 2021 Difference Net income Non-interest-bearing Liabilities 317.6 331.8 +14.2 -3.9 Interest-bearing Liabilities 138.2 131.9 -6.3 Dividends paid (Net interest-bearing Liabilities) (50.7) (-4.2) (-54.9) -10.8 Retiremen
Slide 43: Consolidated Cash Flows
Consolidated Cash Flows 1H FY2020 1H FY2021 (Billions of yen) Operating Cash Flows 22.0 56.2 Investing Cash Flows -28.6 20.7 Financing Cash Flows 13.0 -25.7 Net Increase in Cash and Cash Equivalents 7.2 50.9 Cash and Cash Equivalents at the End of Term 82.1 127.6 Free Cash Flow =Operating Cash Flows
Slide 44: Depreciation and Amortization, Capital Expenditures, EBITDA
Depreciation and Amortization, Capital Expenditures, EBITDA Goodwill and Other Depreciation*1 Capital Expenditures EBITDA*3 Amortization*2 1H 1H Differ- 1H 1H Differ- 1H 1H Differ- 1H 1H Differ- FY2020 FY2021 ence FY2020 FY2021 ence FY2020 FY2021 ence FY2020 FY2021 ence (Billions of yen) Housing 4.8
Slide 45: Depreciation and Amortization, Capital Expenditures, R&D Expenditure
Depreciation and Amortization, Capital Expenditures, Research and Development Expenditure (Billions of yen) FY2020 FY2021 Revised Plan Difference Depreciation 42.9 44.6 +1.7 Goodwill and Other Amortization 6.4 4.4 -2.0 Capital Expenditures 55.3 58.0 +2.7 EBITDA 116.6 139.0 +22.4 Record-high Research
Slide 46: Forward-looking statements
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
Slide 47: Housing Company Results and Plan
Housing Company Results and Plan 1. Main data in Housing5 business FY2021 FY2020 1H 2H Plan Full Year 1H 2H Full Year Net Sales (Billions of yen) 249.8 275.2 525.0 230.6 254.6 485.3 Housing 171.6 188.3 359.8 161.2 175.3 336.5 CONSOLIDATED Renovation 45.9 49.7 95.6 41.5 46.2 87.6 Other 32.4 37.3 69.6
Slide 48: Housing Company Results and Plan: Orders and Starts
Housing Company Results and Plan 2. Housing orders FY2021 FY2020 FY2019 (Millions of yen) 1H 2H Plan Full Year Plan 1H 2H Full Year 1H 2H Full Year Year-start Backlog 184,800 192,500 - 205,400 194,500 - 219,500 217,320 - New construction ・Renovation Growth Rate -10% -1% - -6% -11% - +6% +2% - New Or