Asahi Yukizai Corporation · TSE:4216
Asahi Yukizai — Investor Presentation (August 2024)
61 slides from Asahi Yukizai's investor presentation, Aug 6, 2024
Slide 1: First & No. 1 Niche Top Company
First & No. 1 Niche Top Company Asahi Yukizai Corporation Securities Code: 4216 (Chemical) Kazuya Nakano President & Representative Director August 6, 2024 Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 2: What is Organic Material?
What is Organic Material? What is Organic Material? Copyright(c) ASAHI YUKIZAI CORPORATION 1 Copyright© ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 3: Keyword is "Resin"
Keyword is “Resin” KEYWORD Resin Copyright(c) ASAHI YUKIZAI CORPORATION 2 Copyright© ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 4: Synthesis, Commercialization, Implementation
Synthesis Commercialization Implementation (Engineering） Asahi Yukizai Corp. is a rare company operating from upstream to downstream. Copyright(c) ASAHI YUKIZAI CORPORATION 3 Securities Code: 4216
Slide 5: Table of Contents
Table of Contents 1 Corporate Profile P5- 3 FY2024 Forecast, etc. P35- • Business Overview • Company-Wide Performance • History of the Asahi Yukizai Group • Dividends • Changes Since 2000 and “GNT2025” • Stock Price Trends • Global Network of the Asahi Yukizai Group • 1Q Results • Selected as one of
Slide 6: 1 Corporate Profile
1 Corporate Profile Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 7: Business Overview
Business Overview Asahi Yukizai Group’s Three Business Segments Water Treatment & Natural Thermoplastic Valves (Valve & Piping Systems Divisions) Resources Development (Water treatment & Natural Resources TM Development Divisions) 9% FY2023 Sales Resin 87.4 billion yen 66% Materials 25% Operating Pr
Slide 8: 1945 Started with Aircraft Parts
1945 Started with Aircraft Parts. Manufactured aircraft parts with wood and resin (veneer) instead of scarce metal materials. Founded as Nitchitsu Kozai Kogyo Co., Ltd. Copyright(c) ASAHI YUKIZAI CORPORATION 7 Copyright© ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 9: 1950 Started the Resin Business
1950 Started the Resin Business. Fully developed plastic molding materials, starting with use in the housing of black telephones that were becoming popular in the postwar period. Copyright(c) ASAHI YUKIZAI CORPORATION 8 Copyright© ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 10: 1956 Launched the World's First Thermoplastic Valves
1956 Launched the World's First Thermoplastic Valves. The world's first thermoplastic molding. Released the “ASAHIAV” series of plastic valves. Copyright(c) ASAHI YUKIZAI CORPORATION 9 Copyright© ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 11: 1990 Photoresist Resins / 2000 Small Precision Valves
1990 Photoresist Resins 2000 Small Precision Valves for Semiconductor Manufacturing Equipment Copyright(c) ASAHI YUKIZAI CORPORATION 10 10 Copyright© ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 12: Changes Since 2000 and GNT2025
Changes Since 2000 and “GNT2025” From a “Niche Top Company” to “Great Niche Top Company” Overseas New Domestic Sales expansion : ● businesses : ● : ● Operating profit (100 million yen) (100 million yen) Reforms environment External 1,400 Financial crisis US-China COVID-19 200 of 2008 friction GNT202
Slide 13: Global Network of the Asahi Yukizai Group
Global Network of the Asahi Yukizai Group Germany South Korea U.S.A India China Dubai Mexico Singapore Overseas sales ratio FY2021 FY2022 FY2023 South Africa Valve & Piping 36% 45% 53% Systems Divisions Valve Systems Divisions& Piping Resin Divisions Resin Divisions 24% 26% 26% Water Treatment & Nat
Slide 14: Selected as one of the Global Niche Top Companies
Selected as one of the “2020 Top 100 Global Niche Companies Selections” (Materials/Chemical Category) by the Ministry of Economy, Trade and Industry. Copyright(c) ASAHI YUKIZAI CORPORATION 13 13 Copyright© ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 15: First & No. 1 Niche Top Company
First & No. 1 Niche Top Company Copyright(c) ASAHI YUKIZAI CORPORATION 14 Securities Code: 4216
Slide 16: 2 Business Outline
2 Business Outline Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 17: 2-1 Valve & Piping Systems Divisions
57.5 billion yen FY2023 Total Sales 87.4 Core Divisions billion yen 2-1 Valve & Piping Systems Divisions Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 18: Strengths of Thermoplastic
Strengths of Thermoplastic Demonstrate Metal valves are more common, but resin valves work well in Strengths in Special Fields a situation where corrosion or metal elution is undesirable. Steelmaking, Chemical, Nonferrous Metals Aquariums, Fishery を Agriculture Semiconductors Copyright(c) ASAHI YUKI
Slide 19: Making a Difference in Front-End Processes in Semiconductor Manufacturing
Making a Difference in Front-End Processes in Semiconductor Manufacturing Our strengths in We address strict requirements for reducing defect rates with the semiconductor our advanced technologies, including low-particle technology. field Dymatrix™ FALCONICS™ Small precision valves High-precision fl
Slide 20: Our Relationship with Semiconductor Plants
Our Relationship with Semiconductor Plants Core products, Ultra-pure pipes for pure water equipment Engineering Utility piping design and construction Core products Valves/pipes/fittings Utility building Pure water production equipment Clean rooms Piping equipment Semiconductor plant Engineering bus
Slide 21: Asahi America Continues to Grow
Asahi America Continues to Grow Asahi America Delivers products to a wide range of industries in addition to the Making a semiconductor industry, including water treatment, landfilling, Difference chemicals, etc. (million dollars) Boston Headquarters Prefab plant Exchange rate 107 110 131 141 JPY/US
Slide 22: China: Promoting Localization Proves Successful
China: Promoting Localization Proves Successful Business Utilize local manufacturing and sales networks to meet domestic production needs. strategy Expand sales to local manufacturers. Tianjin FPD (Liquid crystal and organic EL) Chengdu Shanghai Solar cells Sales office Manufacturing bases Copyright
Slide 23: Expanding Our Thermoplastic Valve Market
Expanding Our Thermoplastic Valve Market — Metal Alternatives Corroded metal valve ASAHI AV™ valve Desalination plants Chemical plants Mines 22 Copyright(c) ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 24: 2-2 Resin Divisions
22.3 billion yen FY2023 Total Sales 87.4 billion yen 2-2 Resin Divisions Electronic Materials, Growing Particularly for Semiconductors Foaming Materials Business and Foundry Materials Business Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 25: Making a Difference in Front-End Processes in Semiconductor Manufacturing
Making a Difference in Front-End Processes in Semiconductor Manufacturing Characteristics of Photoresist materials and underlying substrates for legacy and advanced Electronic Materials semiconductors Applications Our strength lies in low-metal technology. Electronic Materials Legacy Semiconductors
Slide 26: Electronic Materials Business: Progress in Plant Construction
Electronic Materials Business: Progress in Plant Construction New construction of our 2nd Electrical Materials Plant - Total investment: 6 billion yen - Purpose: For advanced and legacy semiconductors - Progress: Construction commenced in November 2022. Construction completed and production commen
Slide 27: Foaming Materials Business: On-Site Foaming Insulating Materials
Foaming Materials Business: “On-Site Foaming Insulating Materials” Characteristics of Used for condominiums, commercial facilities, warehouses, refrigerators, etc. “On-Site Foaming Installable in parts with a complex shape, enabling efficient and airtight heat Insulating Materials” insulation work.
Slide 28: Developed the BEXUR Foaming Material
Developed the “BEXUR™” Foaming Material Business ◆ One of the world's best on-site foaming systems Housing Performance Indication Regime Thermal insulation performance grade Insulation thickness Characteristics Grade 7 High Thic Smaller living k spaces - 24% greater insulation performance than Grade
Slide 29: Foundry Materials Business
Foundry Materials Business Copyright(c) ASAHI YUKIZAI CORPORATION 28 28 Copyright© ASAHI YUKIZAI CORPORATION Securities Code: 4216
Slide 30: Foundry Materials Business
Foundry Materials Business Use of Foundry Used in the casting process for engine parts, etc. Material Products Established plants in the areas of active automotive-related manufacturers. Resin Coated Sand (RCS) Sand Mold Cast Product Resin Engine Sand Disc Brake India China Mexico Hiroshima Tochigi
Slide 31: Impact of EV Conversion
Impact of EV Conversion Progress in the Shift A new opportunity for our company. to EVs in Differentiation through high value-added products Automobiles New Demand Continued Demand Brake and Drive Components Engine Parts Thinner, lighter and more complex than ever before Battery Cover Advanced techn
Slide 32: 2-3 Water Treatment & Natural Resources Development Divisions
7.7 billion yen FY2023 Total Sales 87.4 Water Treatment & billion yen 2-3 Natural Resources Development Divisions that contributes to the environment Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 33: History of DRICO
History of DRICO 2013 2019 Became a subsidiary of Asahi Yukizai 2016 Started business in Corporation. Started the China. Started as the Water Treatment & Natural environmental Resources Development Divisions. chemicals business. 2000 Started the recycled 1952 water business. Succeeded in steam well
Slide 34: Drilling Works Map / Recycled Water Treatment Facilities
Number of Drilling Works for Hot Springs - No.1 in Japan Number of Recycled Water Treatment Facilities Constructed in Large Commercial Buildings - No.1 in Japan Drilling Works Map Recycled Water Treatment Facilities: Major Projects ★ Hot Spring Wells About 400 Haneda Airport ★ Wells for Geothermal (
Slide 35: Contribute to a Recycling-Oriented Society through Wastewater Treatment Technology
Entry into Biogas Power Generation Contribute to a Recycling-Oriented Society through Wastewater Treatment Technology Methane [2] Power generation equipment (installation) Electricity, gas, heat Food residues, feces [3] Wastewater and urine, etc. Fermentation treatment equipment residues (design and
Slide 36: 3 FY2024 Forecast, etc.
3 FY2024 Forecast, etc. Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 37: Company-Wide Performance
Company-Wide Performance Operating profit Sales (100 million yen) (100 million yen) 1,000 Sales 売上高 Operating profit 営業利益 200 874 900 870 800 771 150 647 156 600 140 119 120 100 400 66 50 200 0 0 FY2021 FY2022 FY2023 FY2024 FY2025 21年度 22年度 23年度 24年度 25年度 Current Mid-term plan 今回予想 forecast 中計目標 tar
Slide 38: Dividends
Dividends Interim dividend: 55 yen per share; Year-end dividend: 55 yen per share (forecast) Year-end dividend per share (yen) 110 Interim dividend per share (yen) 100 55 70 50 60 50 50 50 45 40 35 30 25 25 25 25 55 15 50 25 25 25 25 30 15 20 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 2
Slide 39: Stock Price Trends
Stock Price Trends * Indexed based on April 3, 2023 as 100 June 31, 2024 Volume: Share price: Index Shares Share price and trading volume history share price (closing): 4,830 yen 180 1,000,000 180 1,000,000 900,000 160 900,000 160 800,000 800,000 140 700,000 700,000 140120 600,000 100 600,000 500,00
Slide 40: 1Q Results
1Q Results (100 million yen) FY2023 FY2024 YoY comparison Consolidated Increase/ basis Increase/ April‒June April‒June Decrease Decrease ratio Sales 210 202 -8 -3.8% Operating 41 28 -13 -31.2% profit Ordinary 44 30 -13 -30.8% profit Quarterly net income attributable to the shareholders of the 28 18
Slide 41: 4 Supplementary data
4 Supplementary data ・Corporate Information ・Business description map (Active locations) Valve & Piping Systems Divisions Resin Divisions Water Treatment & Natural Resources Development Divisions ・How Our Medium-Term Corporate Plan is Progressing ・Financial data (FY2014‒FY2023) Copyright(c) ASAHI YU
Slide 42: Corporate Information
Corporate Information ■ Trade name ASAHI YUKIZAI CORPORATION ■ Nobeoka Head Office 2-5955 Nakanose-cho, Nobeoka-city, Miyazaki, Japan ■ Tokyo Head Office 21st Floor, Ueno Frontier Tower 3-24-6 Ueno, Taito-ku, Tokyo, Japan ■ Establishment March 12, 1945 ■ Capital 5,000,100,000 yen ■ Stock listing Pri
Slide 43: Products of Valve & Piping Systems Divisions
Products of Valve & Piping Systems Divisions are used as shown below. Agriculture Chemical Plants Semiconductor Plants Water Supply and Sewerage Ironworks Systems Aquariums Non-Ferrous Refining Plants Breeding Farms • Chemical Plants • In the Manufacturing • Semiconductor Plants Equipment of • Ironw
Slide 44: Products of Resin Divisions
Products of Resin Divisions are used as shown below. Heat Insulating LED Semiconductors Material LCD Panel Tire parts Transmission • Provide the materials needed to manufacture products Brake Pad • Our products do not remain in form. Disc Brake Engine Copyright(c) ASAHI YUKIZAI CORPORATION 43 Securi
Slide 45: Products of Water Treatment & Natural Resources Development Divisions
Products of Water Treatment & Natural Resources Development Divisions are used as shown below. Geothermal Power Plants Industrial Wastewater Treatment Facilities Hot Spring Facilities Water Supply and Sewage Facilities Recycled Water Reuse Facilities Maintenance Environmental • Provide maintenance s
Slide 46: How Our Medium-Term Corporate Plan is Progressing
How Our Medium-Term Corporate Plan is Progressing Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 47: Numerical Targets
Numerical Targets 2025 Targets Items Figures published in May 2023 Sales 87 billion yen Operating profit 12 billion yen Operating profit ratio 14% EBITDA 16 billion yen ROE 11% ROIC 9% Targets by segment Sales Operating profit Operating profit ratio Valve & Piping Systems 52.5 billion yen 9.5 billio
Slide 48: Numerical Targets
Numerical Targets Sales (100 million yen) Operating profit · EBITDA (100 million yen) 1,000 売上高 Sales Operating 営業利益 250 EBITDA profit 874 870 900 800 771 180 200 178 647 141 147 600 150 156 140 400 87 119 120 100 200 66 50 0 0 FY2024 FY2025 FY2021 21年度 FY2022 22年度 FY2023 23年度 24年度 Current 25年度 Mid-
Slide 49: Sales Growth and Growth Strategies by Business Segment
Sales Growth and Growth Strategies by Business Segment Overseas businesses and semiconductors are our growth drivers, and we will expand our domestic businesses through “differentiation.” 1,200 Sales (100 million yen) Pipe material and other products 管材その他製品 素形材 material Foundry 発泡材料 material Foamin
Slide 50: Investment Strategy Progress
Investment Strategy Progress Investment Investment plan until FY2025 Progress up to FY2023 Progress Specific planned items details Valve & Piping Systems Divisions Resin Divisions • Modernization of the Nobeoka • New electrical Plant materials plant • New Dymatrix plant 6 billion yen Strategic 26 bi
Slide 51: Financial Data (FY2014-FY2023)
Financial Data (FY2014-FY2023) Copyright(c) ASAHI YUKIZAI CORPORATION
Slide 52: Full Business Year
Full Business Year (million yen) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Sales 40,837 41,547 42,029 50,174 56,083 56,581 53,551 64,732 77,099 87,426 Operating profit 1,197 1,591 2,062 3,362 4,224 4,368 3,404 6,575 11,947 15,576 Ordinary profit 1,764 1,525 1,944 3,402 4,
Slide 53: Full Business Year
Full Business Year (million yen) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 ROA 2.1% 1.7% 2.0% 4.7% 6.2% 4.9% 4.2% 6.7% 11.7% 12.1% ROE 3.0% 2.4% 2.9% 7.0% 9.3% 7.2% 6.2% 9.7% 16.8% 17.3% Shareholders' equity ratio 67.3% 71.2% 70.2% 65.4% 68.4% 66.7% 68.9% 68.6% 70.3% 70.0
Slide 54: Full Business Year: Information on Segments
Full Business Year: Information on Segments (million yen) Sales FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Valve & Piping Systems Divisions 21,734 23,750 22,907 27,585 33,544 32,169 30,823 37,725 48,532 57,464 Resin Divisions 13,635 12,686 12,202 15,254 16,254 17,215 15,89
Slide 55: Full Business Year
Full Business Year (million yen) Sales Operating profit 100,000 20,000 87,426 77,099 15,576 80,000 15,000 64,732 11,947 60,000 56,083 56,581 53,551 50,174 41,547 42,029 10,000 40,837 40,000 6,575 5,000 3,362 4,224 4,368 20,000 3,404 1,591 2,062 1,197 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2
Slide 56: Full Business Year
Full Business Year (million yen) Cash flows from operating activities Cash flows from investing activities 12,000 0 9,698 9,000 -1,128 7,175 -2,000 -1,789 -1,536 -1,655 6,194 -2,064 5,841 6,000 -2,069 -3,019 3,420 -4,000 3,012 -3,820 3,000 2,513 2,492 2,240 1,845 -4,836 -4,649 0 -6,000 FY2014 FY2015
Slide 57: Full Business Year
Full Business Year ROA ROE 16.0% 20.0% 16.8% 17.3% 16.0% 11.7% 12.1% 12.0% 12.0% 9.3% 9.7% 7.0% 7.2% 6.2% 8.0% 8.0% 6.7% 6.2% 3.0% 4.0% 2.9% 4.7% 4.9% 4.2% 2.4% 0.0% 4.0% 2.1% 2.0% -4.0% 1.7% 0.0% -8.0% FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2014 FY2015 FY2016 FY2017
Slide 58: Full Business Year
Full Business Year Net income per share (yen) Ratio of ordinary profit to total assets 700.00 20.0% 594.32 17.1% 600.00 15.1% 491.99 16.0% 500.00 12.0% 400.00 9.8% 300.00 249.21 7.0% 6.8% 8.0% 5.5% 203.95 5.8% 145.31 164.01 145.67 200.00 3.6% 4.0% 3.2% 2.8% 100.00 59.35 48.35 56.93 0.00 0.0% FY2014
Slide 59: Full Business Year: Operating Profit Ratio by Segment
Full Business Year: Operating Profit Ratio by Segment Valve & Piping Systems Divisions -- Ratio of operating profit to net sales Resin Divisions -- Ratio of operating profit to net sales 30.0% 10.0% 23.8% 6.7% 6.9% 25.0% 22.0% 5.9% 7.0% 5.7% 4.4% 20.0% 3.9% 4.0% 15.0% 13.0% 4.1% 10.6% 1.0% 8.5% 7.9%
Slide 60: Changes in Capital Investment and Depreciation Expenses
Full Business Year: Changes in Capital Investment and Depreciation Expenses (100 million yen) Changes in capital investment and depreciation Changes in capital investment amounts (by expenses segment) Capital investment amounts Depreciation expenses 60.0 60.0 55.3 55.3 50.1 50.1 50.0 50.0 40.0 37.7
Slide 61: Notes
Securities Code: 4216 (Chemical) Notes Forecasts and prospects in this document are based on information available at the time the document was prepared. It does not assure or guarantee the realization of future planned figures or measures. Copyright(c) ASAHI YUKIZAI CORPORATION