Aichi Steel Corporation · TSE:5482
Aichi Steel — FY2022 Earnings Presentation
35 slides from Aichi Steel's earnings presentation, May 23, 2023
Slide 1: Term ending March 2023 Financial Results Briefing
Term ending March 2023 Financial Results Briefing May,23,2023
Slide 2: Agenda
Agenda 1. Summary of Financial Results for the Fiscal Year Ended March 31, 2023 (FY2022) 2. Financial Results Forecasts for the Fiscal Year Ending March 31, 2024 (FY2023) 3. Clarification of Management Issues and Measures to Address Them
Slide 3: 1. Summary of Financial Results for FY2022
1. Summary of Financial Results for the Fiscal Year Ended March 31, 2023 (FY2022) Copyright © Aichi Steel Corporation 2023 All Rights reserved. 3
Slide 4: Key Financial Results for the Fiscal Year Ended March 31, 2023
Key Financial Results for the Fiscal Year Ended March 31, 2023 Net sales YoY change: Increased (record high) Summary by Company (YoY change) (Billion yen) 260.1 285.1 Hagane Decrease in sales volume/Widespread Increase in sales and Company price pass-through decrease in loss Stainless Steel Decrease
Slide 5: Summary of Financial Results for the Fiscal Year Ended March 31, 2023
Summary of Financial Results for the Fiscal Year Ended March 31, 2023 YoY change Net sales increased by 25.0 billion yen Operating profit increased by 1.1 billion yen (Billion yen) Change Disclosed FY2021 FY2022 Change figures (Feb. 3) Change ratio Net sales 260.1 285.1 +25.0 +9% 284.0 +1.1 Consolid
Slide 6: Analysis of Changes in Operating Profit for FY2022
Analysis of Changes in Operating Profit for the Fiscal Year Ended March 31, 2023 Despite a decrease in sales volume and accompanying deterioration in the cost of sales, profit increased from the previous fiscal year due to factors such as the price pass-through into selling prices in response to soa
Slide 7: Net Sales and Operating Profit by Company
Net Sales and Operating Profit by Company for the Fiscal Year Ended March 31, 2023 Net sales increased in all companies due to rises in selling prices. Operating profit increased year-on-year in total due to reduced loss in Hagane Company. (Billion yen) Net sales Operating profit FY2021 FY2022 Chang
Slide 8: Analysis of Changes in Operating Profit by Company
Analysis of Changes in Operating Profit by Company for the Fiscal Year Ended March 31, 2023 ・Hagane Company and Stainless Steel Company improved from the previous fiscal year due to progress in raising selling prices. ・Kitaeru Company saw a decrease in profit due to a large decrease in sales volume.
Slide 9: Factors behind Difference from Previously Disclosed Figures
Factors behind Difference from the Previously Disclosed Figures (February 3, 2023) For the Fiscal Year Ended March 31, 2023 Company-wide efforts resulted in an increase in profit compared to the previously disclosed figures. Previously disclosed figure Actual result Difference Operating profit 0 bil
Slide 10: 2. Financial Results Forecasts for FY2023
2. Financial Results Forecasts for the Fiscal Year Ending March 31, 2024 (FY2023) Copyright © Aichi Steel Corporation 2023 All Rights reserved. 10
Slide 11: Financial Results Forecasts for the Fiscal Year Ending March 31, 2024
Financial Results Forecasts for the Fiscal Year Ending March 31, 2024 We forecast net sales of 314.0 billion yen (record high) and operating profit of 5.0 billion yen (+1.8 billion yen). (Billion yen) FY2022 FY2023 Change Change rate Net sales 285.1 314.0 +28.9 +10% Consolidated Operating profit 3.2
Slide 12: Assumptions for the Financial Results Forecasts for FY2023
Assumptions for the Financial Results Forecasts for the Fiscal Year Ending March 31, 2024 Sales volume (non-consolidated) Hagane Company Stainless Steel Company Kitaeru Company Smart Company Year-on-year recovery, but Year-on-year recovery, Year-on-year recovery, but still Strong performance in stil
Slide 13: Analysis of Difference in Operating Profit, FY2022 Actual vs FY2023 Forecast
Analysis of Difference in Operating Profit between Actual Result for FY2022 and Financial Results Forecast for FY2023 Although prices of purchased goods, mainly energy-related goods, will continue to rise, we expect year-on- year increase in profit due to price pass-through into selling prices, incr
Slide 14: Dividends
Dividends Dividends were 20 yen at the end of the term and 30 yen for the full year. For the fiscal year ending March 31, 2024, we expect interim dividends of 20 yen and full-year dividends of 50 yen. (Billion yen) Fiscal year ending March 31, 2024 Fiscal year ended March 31, 2023 (Forecast) Interim
Slide 15: 3. Clarification of Management Issues and Measures to Address Them
3. Clarification of Management Issues and Measures to Address Them Copyright © Aichi Steel Corporation 2023 All Rights reserved. 15
Slide 16: Clarification of Management Issues and Measures to Address Them
Clarification of Management Issues and Measures to Address Them Operating profit has turned to an upward trend since FY2022 due to the implementation of Genryou Management (managing with limited order quantities) in response to decreased sales volume since FY2020 and the pass-through of higher price
Slide 17: Sales volumes of specialty steel and forgings are sluggish
Clarification of Management Issues and Measures to Address Them (Downturn in Sales Volume) Downturn in sales volume (Amount of difference in operating profit from the Medium-term Management Plan: -6.0 billion yen) Change in sales volume Sales volume fell short of the Medium-term (Thousand tons) 1,40
Slide 18: Continued soaring prices of purchased goods and price pass-through
Clarification of Management Issues and Measures to Address Them (Soaring Prices of Purchased Goods and Time Lag in Price Pass-through into Selling Prices, Some of Which Have Not Yet Been Reflected) Continued soaring prices of purchased goods → Price pass-through into selling prices (Amount of differ
Slide 19: Issues to be Addressed in the Future
Issues to be Addressed in the Future No Issues to be addressed Impact Effort Sales volume fell short of the Medium- 【Hagane Company/ Kitaeru Company】 Term Management Plan by -7% 1 Downturn in sales volume (Difference: -6.0 billion yen, a factor Reform the structure of purchases, production, reducing
Slide 20: Profit Structure Reforms: Reform of Purchases
1. Conduct Profit Structure Reforms in Core Business (Hagane Company/Kitaeru Company) Genryou Management: Conduct profit structure reforms from every angle, purchases, production, and sales and aim to secure stable profitability for Hagane Company and Kitaeru Company (1) Reform of Purchases Procurem
Slide 21: Reform of Production
1. Conduct Profit Structure Reforms in Core Business (Hagane Company/Kitaeru Company) (2) Reform of Production Current Implemented extensive measures to renew and repair old equipment to increase production and ensure 【Up to the present 】a stable supply → The establishment of a stable supply system
Slide 22: Securing volume by reviewing the portfolio of strategic products
1. Conduct Profit Structure Reforms in Core Business (Hagane Company/Kitaeru Company) (3) Reform of Sales (Volume) Securing volume by reviewing the portfolio of strategic products ・ Shift in product strategy to electric vehicle parts and steel materials (Recovery of specialty steel and forgings, whi
Slide 23: Change the rules for determining selling prices
1. Conduct Profit Structure Reforms in Core Business (Hagane Company/Kitaeru Company) (3)Reform of Sales (Price) Change the rules for determining selling prices ◆ Issue: Large impact of delay in price pass-through into selling prices ① Faster price pass-through into selling prices Specialty steels a
Slide 24: High-performance products
2. Further Expansion of High-performance Products (Stainless Steel Company/Smart Company) Expand sales of high-performance products responding to CASE and CN based on our DNA of material technology ◆Pursue new possibilities that materials have to develop new businesses 1980 1990 2000 2010 Expand sal
Slide 25: Expand sales of power card lead frames
2. Further Expansion of High-performance Products (Stainless Steel Company/Smart Company ) (a) Expand sales of power card lead frames ◆ Demand for power card lead frames surges. Toyota Motor Corporation declares EV First. 2030 → Electrification will be further accelerated under the Consider Toyota M
Slide 26: Stainless steel manufacturing process reform
2. Further Expansion of High-performance Products (Stainless Steel Company/Smart Company ) (b) Stainless steel manufacturing process reform → Responding to the hydrogen society and renewal of infrastructure ◆ Demand for stainless steel increased due to its Reform of stainless steel manufacturing pro
Slide 27: Addressing ESG Issues: Achieving a Decarbonized Society
3. Addressing ESG Issues (Achieving a Decarbonized Society) ◆ Realization of a decarbonized society will have a large impact on the specialty steel (electric furnace) industry. ・Blast furnace → Electric furnace (increased demand for scrap/soaring prices) ・Enormous capital investment to respond to in
Slide 28: Carbon neutrality targets and CO2 emissions
3. Addressing ESG Issues (Achieving a Decarbonized Society) We raised the CO2 reduction target for 2030 from 35% to 50% by introducing innovative technologies. In addition to persistent energy-saving activities to realize a decarbonized Carbon neutrality targets society, we are also taking on the ch
Slide 29: Product Development That Contributes to the SDGs
3. Addressing ESG Issues (Product Development That Contributes to the SDGs) ◆ We will contribute to solving food problems, greening the soil, and curbing global warming with next-generation fertilizers, Proline Deoxymugineic Acid (PDMA). PDMA enables agriculture on alkaline poor soils, which account
Slide 30: Appendix
Appendix Copyright © Aichi Steel Corporation 2023 All Rights reserved. 30
Slide 31: Changes in Capital Expenditures, Depreciation Expenses, and R&D Expenses
Changes in Capital Expenditures, Depreciation Expenses, and R&D Expenses Capital expenditures (Million yen) Depreciation expenses (Million yen) R&D expenses (Million yen) 20,914 17,821 16,903 17,276 4,404 20,068 18,595 15,884 14,423 4,252 15,874 14,868 3,992 3,962 3,758 FY2018 FY2019 FY2020 FY2021 F
Slide 32: Statements of Cash Flows
Statements of Cash Flows (Billion yen) FY2018 FY2019 FY2020 FY2021 FY2022 Cash flows from operating activities 13.5 36.3 15.8 5.2 13.0 Cash flows from investing activities - 19.7 - 24.5 - 14.2 -15.5 - 15.9 Free cash flows - 6.1 11.7 1.6 -10.3 - 2.9 Cash flows from financing activities 9.0 - 3.2 13.4
Slide 33: Financial Data Trends
Financial Data Trends Interest bearing Net assets/ROE (Billion yen) Total assets/ROA (Billion yen) (Billion yen) debt/Debt-equity ratio Net assets Total assets Interest bearing debt ROE ROE Debt-equity ratio 300 5.56 400 385.4 100 2.99 353.0 364.4 0.42 4.27 80 0.39 0.38 0.39 212.4 214.3 300 290.2 0.
Slide 34: Thank you very much.
Thank you very much. Aichi Steel Corporation assumes no responsibility for any loss arising from the use, misuse, or distribution of this document or the information contained herein, or anything related thereto. The so-called forward-looking information contained in the materials used in this prese
Slide 35: Innovate Materials. Create Tomorrow.
Innovate Materials. Create Tomerrow.