Aichi Steel Corporation · TSE:5482
Aichi Steel — Q2 FY2024 Earnings Presentation
21 slides from Aichi Steel's earnings presentation, Nov 1, 2023
Slide 1: Financial Results Briefing, 2nd Quarter FY ending March 2024
The 2nd quarter of the fiscal year ending March 2024 Financial Results Briefing November 1,2023
Slide 2: Agenda
Agenda 1. Summary of the financial results for the 1st half of the Fiscal year ending March 2024 2. Financial results Forecast for the Fiscal year ending March 2024
Slide 3: 1. Summary of the Financial Results for the Six Months Ended September 30, 2023
1. Summary of the Financial results for the Six month ended September 30, 2023 Copyright © Aichi Steel Corporation 2023 All Rights reserved. 3
Slide 4: Key financial results for the 1st half
Key financial results for the 1st half of the Fiscal year ending March 2024 Revenue Year-on-year comparison: Overview by company (100 million yen) Increased revenue Hagane 1,398 1,493 Company Decrease in sales quantity and Increased revenue and penetration of price pass-through profitability (Specia
Slide 5: Summary of consolidated results
Summary of the results for the 1st half of the Fiscal year ending March 2024 Revenue increased by 9.5 billion yen and Operating profit increased by 4.5 billion yen year-on-year. (100 million yen) Fiscal year Fiscal year Forecast for ended March ending March Rate of 2023 2024 Change 1st half on FY Ch
Slide 6: Analysis of the Change in Operating Profit in the 1st half
Analysis of the Change in Operating Profit in the 1st half of the Fiscal year ending March 2024 In addition to the tailwind due to the slide gap and the reflection of the impact of soaring purchase prices on sales prices, operating profit increased significantly year-on-year due to the promotion of
Slide 7: Revenue and Operating Profit by Company in the 1st half
Revenue and Operating Profit by Company in the 1st half of the Fiscal year ending March 2024 Revenue increased at all companies excluding Stainless Company due to higher sales prices. Operating profit increased year-on-year overall due to the return to profitability of Hagane Company. (100 million y
Slide 8: Analysis of Changes in Operating Profit by Company in the 1st half
Analysis of Changes in Operating Profit by Company in the 1st half of the Fiscal year ending March 2024 ・ Hagane Company and Stainless Company profit increased year on year as sales price increases penetrated. ・ Although sales price increases penetrated, Kitaeru Company was at the same level year-on
Slide 9: Summary of the 1st half
Summary of the 1st half of the Fiscal year ending March 2024 • Sales quantities were sluggish in the 1st half of the Fiscal year, but sales prices increase progressed by reflecting the soaring purchasing prices from fiscal year 2020 on sales price. • In manufacturing too, we worked on serious Genryo
Slide 10: Core business Profit Structure Reform: (1) Reform of Sales
Core business Profit Structure Reform in the 1st half of the Fiscal year ending March 2024 Serious Genryou management: Based on the promotion of Profit Structure Reform in all directions of “Sales, Production and Purchasing,” activities aimed at securing stable profitability for both Hagane Company
Slide 11: Core business Profit Structure Reform: (2) Reform of Production
Core business Profit Structure Reform in the 1st half of the Fiscal year ending March 2024 (2) Reform of “Production” ◆ Activities to lower the break-even point thoroughly As part of Genryou management, we will implement variable cost improvement activities in all aspects through the improvement o
Slide 12: Core business Profit Structure Reform: (3) Reform of Purchasing
Core business Profit Structure Reform in the 1st half of the Fiscal year ending March 2024 (3) Reform of “Purchasing” ◆ Steel scrap source reengineering: Profit improvement based on the expansion of Scrap storage capacity Stable Creation of storage space to secure inexpensive scrap stably procuremen
Slide 13: 2. Financial Results Forecast for the Fiscal Year ending March 2024
2. Financial results Forecast for the Fiscal year ending March 2024 Copyright © Aichi Steel Corporation 2023 All Rights reserved. 13
Slide 14: Consolidated Financial Results Forecast for FY ending March 2024
Financial results Forecast for the Fiscal year ending March 2024 We have maintained the previously announced operating profit of 4.0 billion yen in the 2nd half of the fiscal year, but we have revised the full-year results forecast due to 1st half results going up, and now expect revenue of 307.5 bi
Slide 15: Prerequisites for the results forecast for FY ending March 2024
Prerequisites for the results forecast for the fiscal year ending March 2024 Sales quantity (non-consolidated) Hagane Company Stainless steel Company Kitaeru Company Smart Company (Specialty Steel) (Stainless Steel) (Forging) (Electronic parts) Year-on-year recovery Delay in demand recovery Year-on-
Slide 16: Forecast and Analysis of the change in operating profit
Financial results Forecasts and Analysis of the change in operating profit for the Fiscal year ending March 2024 Increased profit is expected due to profit-increasing factors such as an increase in sales quantities, the progress of sales price increases, decreases in purchased goods prices and reduc
Slide 17: Factors of the difference in operating profit between 1st half and 2nd half
Results Forecasts and Factors of the difference in operating profit between 1st half and 2nd half for the Fiscal year ending March 2024 1st half operating profit was 4.7 billion yen with the tailwind from the slide gap (+3.2 billion yen) In the 2nd half, the slide gap (-0.8 billion yen) will be a he
Slide 18: Results Forecast and Summary for the Fiscal Year ending March 2024
Results Forecast and Summary for the Fiscal year ending March 2024 In the 1st half, we were able to generate profit exceeding expectations, partly because of the tailwind from the slide gap. In the 2nd half, we expect a more difficult business environment, with the slide gap turning into a headwind.
Slide 19: Shareholder return
Shareholder return The dividend for the Fiscal year ending March 2024 is expected to be 80 yen for the full term with an interim dividend of 40 yen as already announced. (Dividends) Fiscal year ended March 2023 Fiscal year ending March 2024 (Forecast) Interim period Full term Interim period Full ter
Slide 20: 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 21: Innovate Materials. Create Tomorrow.
Innovate Materials. Create Tomerrow.