Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q2 2023 Earnings Presentation
45 slides from Sekisui Chemical's earnings presentation, Oct 30, 2023
Slide 1: Presentation of Financial Results: Progress under Management Plan
SEKISUI CHEMICAL CO., LTD. For 2Q FY2023, ending March 31, 2024 Presentation of Financial Results Progress under Management Plan Keita Kato President and CEO October 30, 2023
Slide 2: Main Points of Today's Presentation
Main Points of Today’s Presentation ★：Record high Compared Difference 2H Compared Difference Compared Difference 1H FY2023 with from FY2023 with from with from FY2023 Revised 1H FY2022 Forecasts Revised 2H FY2022 Forecasts FY2022 Forecasts (JPY billion) Results Plan Results (July 2023) Plan Results
Slide 3: Results for 1H FY2023
Results for 1H FY2023 1H 1H FY2023 Forex rate FY2022 FY2023 Initial Plan In-house ¥139/US$ ¥133/US$ assumptions - ¥151/€ ¥142/€ Futoshi Kamiwaki Results ¥134/US$ ¥141/US$ (Avg. rate for - each term) ¥139/€ ¥153/€ Representative Director Senior Managing Executive Officer * Export data is subject to i
Slide 4: Overview of 1H FY2023 Results
Overview of 1H FY2023 Results ▌ Increase in net sales; Secure an increase in operating profit despite falling slightly below forecasts (July) ▌ Ordinary profit in excess of forecasts (July) mainly on the back of foreign exchange gains ▌ Increase in profit with the bottom line mainly owing to the gai
Slide 5: 1H FY2023 Results by Segment
1H FY2023 Results by Segment ▌ Increases in operating profit in the HPP and UIEP companies; Increase in net sales and decrease in operating profit in the Housing Company and Medical Business • HPP*: Despite a decrease in sales owing to harsh market conditions in Europe and Japan, operating profit in
Slide 6: 1Q & 2Q FY2023 Results by Segment
1Q & 2Q FY2023 Results by Segment ▌ Despite Group-wide 2Q operating profit falling slightly below the previous year, secured increase in net sales and operating profit in the HPP Company and Medical Business 1Q FY2022 1Q FY2023 2Q FY2022 2Q FY2023 Net Operating Net Operating Net Operating Net Operat
Slide 7: 1H FY2023 Results Analysis
1H FY2023 Results Analysis ▌ Successful efforts to secure an increase in margins and control fixed costs offset the substantial decline in sales volumes & product mix attributable to the prolonged deterioration in market conditions; Secured an increase in operating profit ▌ Results slightly below fo
Slide 8: FY2023: Revised 2H and Full FY Plans
FY2023: Revised 2H and Full FY Plans 2H FY2023 FY2023 Forex rate 2H FY2022 Revised Plan Initial Plan In-house ¥145/US$ ¥133/US$ assumptions - ¥158/€ ¥142/€ Results ¥137/US$ (Avg. rate for - - each term) ¥143/€ 7
Slide 9: Outlook for Market Conditions
Outlook for Market Conditions *Figures in parentheses: 1H forecasts (July) Housing・Visitors (YoY) Number of Automobiles Manufactured (YoY) 2H plans (April) Sluggish recovery in 1H exhibition visitors with overall visitors 2Q trends exceeded expectations; Despite a projected recovery in falling below
Slide 10: 2H FY2023 Revised Plan by Segment
2H FY2023 Revised Plan by Segment ▌ Despite market conditions continuing to trend below expectations, substantial increases in net sales and operating profit in the HPP Company; Despite decrease in net sales and operating profit in the Housing Company, net sales and operating profit forecast to incr
Slide 11: 2H FY2023 Revised Plan Analysis
2H FY2023 Revised Plan Analysis ▌ Despite market conditions falling below expectations, forecasting a partial recovery; Forecasting a substantial increase in operating profit with results exceeding initial plans (April) through focusing on increasing sales volumes & product mix, securing margins, an
Slide 12: FY2023 Revised Plan by Segment
FY2023 Revised Plan by Segment ▌ Increases in Group-wide net sales and operating profit; Group-wide results, centered on the HPP Company to offset the impact of a decline in demand in the Housing Business ▌ Expected to achieve operating profit of ¥100 billion in line with initial plans (April) and f
Slide 13: FY2023 Revised Plan and Returns to Shareholders
FY2023 Revised Plan and Returns to Shareholders ▌ Increase in net sales; Downward revision in net sales; Increases in operating profit and the bottom line in line with forecasts (July); Profit projected to hit a record high ▌ Increase in dividends of ¥5 per share compared with forecasts (July) and p
Slide 14: High Performance Plastics Company
High Performance Plastics Company Ikusuke Shimizu Company President 13
Slide 15: FY2023 1H Results and 2H Revised Plan: HPP
HPP FY2023 1H Results and 2H Revised Plan Company ▌ 1H: Despite a decrease in sales owing to harsh market conditions mainly in Europe and Japan, increase in operating profit, which exceeded forecasts (July) on the back of successful efforts to expand margins and control fixed costs as well as the ef
Slide 16: 1H FY2023 Results Analysis: HPP
HPP 1H FY2023 Results Analysis Company ▌ Decreases in sales volumes & product mix, especially in the Industrial field, owing to delays in the recovery in market conditions; Firm trends in the Mobility field and a recovery trend in the Electronics field from the 2Q; Achieved an increase in operating
Slide 17: 2H FY2023 Revised Plan Analysis: HPP
HPP 2H FY2023 Revised Plan Analysis Company ▌ Increases in sales volume & product mix on the back of expectations of a partial recovery in market conditions, which in turn is projected to substantially increase net sales; Operating profit forecast to increase substantially owing to successful effort
Slide 18: Three Strategic Fields: HPP
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 19: Housing Company
Housing Company Toshiyuki Kamiyoshi Company President 18
Slide 20: FY2023 1H Results and 2H Revised Plan: Housing
Housing FY2023 1H Results and 2H Revised Plan Company ▌ 1H: Despite securing an increase in net sales on the back of an increase in unit prices and contributions from the firm Renovation, Real Estate as well as Town and Community Development businesses, decrease in operating profit owing to the subs
Slide 21: 1H FY2023 Results Analysis: Housing
Housing 1H FY2023 Results Analysis Company ▌ Despite a decrease in operating profit in the Housing Business owing to the decrease in the number of houses sold and the impact of the increase in component costs, increase in operating profit on the back of successful efforts to capture firm demand in t
Slide 22: 2H FY2023 Revised Plan Analysis: Housing
Housing 2H FY2023 Revised Plan Analysis Company ▌ Work to minimize the impact of a decrease in the number of houses sold through efforts to control costs in the Housing Business while at the same time implementing measures aimed at strengthening profitability; Focus on capturing firm demand in the R
Slide 23: KPIs by Business: Housing
Housing KPIs by Business Company Housing Business New Housing Orders (YoY) Number of Orders by Type of Construction Smart House-related Indicators*4 • 1H: New housing orders fell slightly below • Recovery trend across all types from the 2Q • Steady progress in each of the indicators; forecasts (July
Slide 24: Urban Infrastructure & Environmental Products Company
Urban Infrastructure & Environmental Products Company Yoshiyuki Hirai Company President 23
Slide 25: FY2023 1H Results and 2H Revised Plan: UIEP
UIEP FY2023 1H Results and 2H Revised Plan Company ▌ 1H: Despite the deterioration in housing and non-residential market conditions, secured an increase in operating profit through thoroughgoing efforts to secure margins and measures to control fixed costs ▌ 2H: Market conditions forecast to exhibit
Slide 26: 1H FY2023 Results Analysis: UIEP
UIEP 1H FY2023 Results Analysis Company ▌ Despite a decline in housing demand in Japan and the deterioration in non-residential market conditions, secured an increase in operating profit on the back of successful efforts to secure margins and control fixed costs; Despite operating income falling sli
Slide 27: 2H FY2023 Revised Plan Analysis: UIEP
UIEP 2H FY2023 Revised Plan Analysis Company ▌ Despite market conditions falling below expectations (April), modest recovery trend; Forecasting increase in net sales and operating profit in line with initial plans (April) owing to increases in sales volumes & product mix as well as efforts to secure
Slide 28: Three Strategic Fields: UIEP
UIEP Three Strategic Fields Company Net sales in the Three Strategic Fields Building and Performance Construction and Fire resistant and non- Pipe Systems flammable materialsmaterials (railroad industrial piping Infrastructures Composite Materials sleepers, etc.) Pipe and joint materials for buildin
Slide 29: Medical Business
Medical Business Eiichi Takahashi President of SEKISUI MEDICAL CO., LTD 28
Slide 30: FY2023 1H Results and 2H Revised Plan: Medical
Medical FY2023 1H Results and 2H Revised Plan Business ▌ 1H: Despite continued firm trends in new pharmaceutical ingredients, decrease in operating profit owing to delays in the authorization of new products (COVID-19 diagnostics kits) in the U.S.; Results fell below forecasts (July) ▌ 2H: Forecasti
Slide 31: 1H FY2023 Results Analysis: Medical
Medical 1H FY2023 Results Analysis Business ▌ Despite an increase in sales of COVID-19 diagnostics kits in Japan and sales growth of blood coagulation reagents in China, decrease in operating profit owing to the inability to offset the impact of delays in authorizing new products in the U.S.; fell s
Slide 32: 2H FY2023 Revised Plan Analysis: Medical
Medical 2H FY2023 Revised Plan Analysis Business ▌ Focus on expanding sales of new products in the U.S.; Target a record high with a substantial increase in 2H operating profit on the back of diagnostics reagent sales growth in Japan and overseas, an increase in new pharmaceutical ingredient sales,
Slide 33: Overview by Business: Medical
Medical Overview by Business Business Net sales by Business and Overview of Progress Overseas testing Diagnostics (Japan) Diagnostics (overseas) system • 1H: Expand in POC demand; Firm trends in outpatient test demand • 1H: Substantial delays in authorizing new products in the U.S.; • 2H: POC demand
Slide 34: Financial Results 1H FY2023
Financial Results 1H FY2023 33
Slide 35: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2023 Sep. 30, 2023 Difference Consolidated Increased: 0 Subsidiaries subsidiaries 148 145 Decreased: 3 Subsidiaries*1 Affiliates Increased: 0 Subsidiaries 7 6 (Equity Method) Decreased: 1 Subsidiary*2 *1 Sekisui (Shanghai) Environmenta
Slide 36: Summary of Profit and Loss
Summary of Profit and Loss + 1H FY2022 1H FY2023 Difference (JPY billion) Net sales 607.8 611.3 +3.5 Gross profit 182.8 188.2 +5.3 Gross profit margin 30.1% 30.8% +0.7% Selling, general and administrative expenses 142.5 147.0 +4.5 Foreign exchange gains: +6.5 Operating profit 40.3 41.2 +0.8 Share of
Slide 37: Balance Sheets (Assets)
Balance Sheets (Assets) Sep.30 Inventories (B/S item) 2023 Difference Ready-built housing (products) 37.2 +4.5 Prepared land for subdivision Mar. 31, 2023 Sep. 30, 2023 Difference housing 65.2 +1.0 (JPY billion) Land under preparation (work in process) 10.4 +0.4 Housing under construction Cash and d
Slide 38: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (JPY billion) Mar. 31, 2023 Sep. 30, 2023 Difference Non-interest-bearing liabilities 375.1 372.5 -2.6 Interest-bearing liabilities 120.5 121.5 +1.0 Net profit: +44.5 [Net interest-bearing liabilities] [19.4] [-16.8] [-36.1] Dividends paid: -12.9 Total liabi
Slide 39: Consolidated Cash Flows
Consolidated Cash Flows (JPY billion) 1H FY2022 1H FY2023 Cash flows from operating activities 35.4 49.3 Cash flows from investing activities -22.9 6.8 Cash flows from financing activities -31.9 -26.2 Net increase in cash and cash equivalents -15.4 34.6 Cash and cash equivalents at end of period 118
Slide 40: Depreciation, Amortization, Capital Expenditures and EBITDA
Depreciation, Amortization, Capital Expenditures and EBITDA Goodwill and other Depreciation*1 Capital expenditures EBITDA*3 amortization*2 1H 1H Differ- 1H 1H Differ- 1H 1H Differ- 1H 1H Differ- FY2022 FY2023 ence FY2022 FY2023 ence FY2022 FY2023 ence FY2022 FY2023 ence (JPY billion) Housing 5.4 5.7
Slide 41: Depreciation, Amortization, Capital Expenditures, R&D Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure FY2023 FY2022 Difference (JPY billion) Revised Plan Depreciation 47.7 50.3 +2.6 Goodwill and other amortization 2.7 2.7 0 Capital expenditures 56.8 72.0 +15.2 EBITDA 142.1 153.0 +10.9 Research and development expe
Slide 42: 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 43: Housing Company Results and Plan
Housing Company Results and Plan 1. Main data in Housing business 5ｚｚｚｚｚｚｚｚｚｚｚｚｚ FY2023 FY2022 1H 2H Plan Annual Plan 1H 2H Annual Net sales (JPY billion) 264.8 274.2 539.0 260.2 277.2 537.4 Housing 175.3 178.6 354.0 177.2 186.4 363.6 CONSOLIDATED Renovation 50.9 53.5 104.4 47.0 50.3 97.3 Other 38.6
Slide 44: Housing Company Results and Plan: Orders and Starts
Housing Company Results and Plan 2. Housing orders FY2023 FY2022 FY2021 (Millions of yen) 1H 2H Plan Annual Plan 1H 2H Full Year 1H 2H Annual New construction ・Renovation Year-start Backlog 164,300 147,200 - 185,000 186,900 - 184,800 192,500 - Growth Rate -11% -21% - ±0% -3% - -10% -1% - New Orders
Slide 45: SEKISUI
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