Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q1 2021 Earnings Presentation
28 slides from Sekisui Chemical's earnings presentation, Jul 29, 2021
Slide 1: Presentation of Financial Results 1Q FY2021
SEKISUI CHEMICAL CO., LTD. Presentation of Financial Results 1Q FY2021, ending March 31, 2022 Futoshi Kamiwaki Director Senior Managing Executive Officer Head of Business Strategy Department July 29, 2021
Slide 2: 1Q FY2021 Results and 1H FY2021 Forecasts
1Q FY2021 Results and 1H FY2021 Forecasts FY2021 Forex Rate 1Q FY2020 1H FY2020 1Q FY2021 2Q FY2021 1H FY2021 (Initial Plan) Assumptions ¥110/US$ ¥109/US$ ¥105/US$ ¥110/US$ ¥108/US$ ¥105/US$ ¥120/€ ¥121/€ ¥127/€ ¥133/€ ¥130/€ ¥127/€ Results ¥108/US$ ¥107/US$ ¥109/US$ (Avg. rate for ‐ ‐ ‐ each term)
Slide 3: Overview of 1Q FY2021 Results
Overview of 1Q FY2021 Results ∎Substantial increases in sales and operating income despite certain lingering effects of COVID-19 ∎Substantial increases in ordinary income and the bottom line due to such factors as foreign exchange gain and gain on sale of shares ∎Net sales and operating income both
Slide 4: 1Q FY2021 Results: Net Sales and Operating Income by Divisional Company
1Q FY2021 Results: Net Sales and Operating Income by Divisional Company ∎Secured an increase in profit in each segment; substantial increases in Groupwide sales and profit despite a decrease in UIEP Company sales due to the impact of structural reforms (business transfer); 1Q results slightly in exc
Slide 5: Outlook for Market Conditions
Outlook for Market Conditions ∎While automobile demand is lower than initially anticipated, recovery expected to continue; firm trends in smartphone market conditions; continued upswing in raw material costs Number of Automobiles Manufactured (YoY) Housing・Visitors (YoY) Despite a global market reco
Slide 6: 1H FY2021 Forecasts: Net Sales and Operating Income by Divisional Company
1H FY2021 Forecasts: Net Sales and Operating Income by Divisional Company ∎Despite higher-than-expected raw material and component costs, projected to achieve operating income plan due to a certain level of improvement in market conditions, expanded sales of high- performance products, increased sel
Slide 7: 1H FY2021 Forecasts by Divisional Company (1Q & 2Q)
1H FY2021 Forecasts: Net Sales and Operating Income by Divisional Company (1Q & 2Q) ∎Despite 1Q results slightly exceeding plans, Groupwide 1H operating income to come in in line with initial plans after factoring in the continued impact of the upswing in raw material costs and shortages in semicond
Slide 8: 1H FY2021 Forecasts: Analysis
1H FY2021 Forecasts: Analysis ∎Substantial increases in sales volumes and product mix. Increase in selling prices, cost reductions, and efforts to control fixed costs to offset the higher-than-anticipated upswing in raw material costs ∎Business environment anticipated to remain uncertain over the 2H
Slide 9: Overview of 1H FY2021 Forecasts
Overview of 1H FY2021 Forecasts ∎Upward revision in net sales ∎Each level of profit projected to come in in line with initial plans 1H FY2021 1H FY2021 Plan 1H FY2020 Difference (Apr. 2021) Difference Forecasts (Billions of yen) Net Sales 490.0 548.3 +58.3 539.7 +8.6 Operating Income 22.4 31.7 +9.3
Slide 10: Intentionally Blank
Intentionally Blank SCKISUI Copyright© SEKISUI CHEMICAL CO., LTD. All Rights Reserved
Slide 11: HPP Company: 1H FY2021 Forecasts
HPP HPP Company : 1H FY2021 Forecasts Company ∎Profitability to recover to the same level as FY2019 with the increase in selling prices, cost reductions, and other factors projected to offset the higher-than-anticipated upswing in raw material costs and continued impact of shortages in semiconductor
Slide 12: HPP Company: Three Strategic Fields
HPP Three Strategic Fields Company ∎Despite certain lingering effects of COVID-19, progress in excess of plans in each of the three strategic fields ∎Concerns surrounding trends in demand due to ongoing shortages in semiconductor supply Net Sales Trends and Progress in the Three Strategic Fields Mob
Slide 13: Housing Company: 1H FY2021 Forecasts
Housing Company : 1H FY2021 Forecasts Housing Company ∎Despite the upswing in component costs, expected to achieve both net sales and operating income due to the recovery in orders and reductions in costs Results and Plan for Orders • Housing: 1Q orders in excess of plans. While the number of houses
Slide 14: Housing Company: New Housing Orders
New Housing Orders Housing Company ∎Accelerating three growth measures through the 50th anniversary project Customer and Order Trends Order Results and Forecasts * % : YoY Visitors Number of Orders by Type of Construction (YoY) New Housing Orders (Units) Recovery trend driven by the number of St
Slide 15: UIEP Company: 1H FY2021 Forecasts
UIEP UIEP Company : 1H FY2021 Forecasts Company ∎Despite increases in sales volume and product mix as well as efforts to control fixed costs, downward revision in 1H operating income plan due to the substantial impact of increases in raw material costs and continued slowdown in domestic non-resident
Slide 16: UIEP Company: Three Strategic Fields
Three Strategic Fields UIEP Company ∎Despite a recovery in demand in certain zones (U.S. and Asia) as the impact of COVID-19 subsides, delay in the recovery of domestic non-residential demand ∎Progress in prioritized products* and overseas sales in line with plans * Prioritized products: High-value-
Slide 17: Medical Business: 1H FY2021 Forecasts
Medical Business : 1H FY2021 Forecasts Medical Business ∎Recovery in operating income to the same level as FY2019 due to a recovery in the number of outpatient tests both in Japan and overseas; expected to achieve 1H operating income plan ∎Steady progress in the Pharmaceutical Sciences business Net
Slide 18: Medical Business: Overview by Business
Overview by Business Medical Business ∎Despite a slowdown in COVID-19 diagnostic kits (Diagnostics (overseas)), recovery in outpatient test demand (Diagnostics (Japan, overseas)). Steady progress in the Pharmaceutical Sciences business in line with plans Net Sales by Business and Overview of Progres
Slide 19: Financial Results 1Q FY2021
Financial Results 1Q FY2021 Copyright© SEKISUI CHEMICAL CO., LTD. All Rights Reserved. 18
Slide 20: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2021 June 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 SYSTEM
Slide 21: Summary of Profit and Loss
Summary of Profit and Loss 1Q FY2020 1Q FY2021 Difference (Billions of yen) Net Sales 214.8 248.6 +33.8 Gross Profit 66.0 77.9 +11.9 Gross Profit Margin 30.7% 31.4% +0.6% Selling, Gen. and Admin. Expenses 64.5 66.8 +2.3 Operating Income 1.5 11.1 +9.6 Equity in Earnings of Affiliates 0.2 0.3 +0.1 Oth
Slide 22: Balance Sheets (Assets)
Balance Sheets (Assets) June 30, Inventories (B/S item) 2021 Difference Ready-built housing (products) 30.1 +2.8 Prepared land for subdivision Mar. 31, 2021 June 30, 2021 Difference housing 59.4 +0.7 (Billions of yen) Land under preparation (work in process) 12.3 -2.1 Cash and Deposits 87.5 84.3 -3.
Slide 23: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (Billions of yen) Mar. 31, 2021 June 30, 2021 Difference Non-interest-bearing Liabilities 317.6 314.1 -3.5 Net income +12.5 Interest-bearing Liabilities 138.2 138.1 -0.1 Dividends paid (Net interest-bearing Liabilities) (50.7) (53.8) (+3.1) -10.8 Total Liabi
Slide 24: Consolidated Cash Flows
Consolidated Cash Flows 1Q FY2020 1Q FY2021 (Billions of yen) Operating Cash Flows -0.9 11.3 Investing Cash Flows -13.6 3.8 Financing Cash Flows 21.8 -17.7 Net Increase in Cash and Cash Equivalents 8.0 -2.5 Cash and Cash Equivalents at the End of Term 82.9 74.2 Free Cash Flow =Operating Cash Flows +
Slide 25: Depreciation and Amortization, Capital Expenditures, R&D Expenditure
Depreciation and Amortization, Capital Expenditures, Research and Development Expenditure FY2021 (Billions of yen) 1Q FY2020 1Q FY2021 Difference FY2020 Difference (Plan) Depreciation 10.2 10.7 +0.4 42.9 44.3 +1.4 Goodwill and Other Amortization 1.8 1.6 -0.2 6.4 5.7 -0.7 Capital Expenditures 13.4 11
Slide 26: 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 27: Housing Company Results and Plan
Housing Company Results and Plan 1. Main data in Housing business 5 FY2021 FY2020 1H Forecasts 1H 2H 1Q 1Q Net Sales (Billions of yen) 105.5 254.0 96.1 230.6 254.6 Housing 68.7 174.8 65.7 161.2 175.3 CONSOLIDATED Renovation 20.6 46.5 17.0 41.5 46.2 Other 16.2 32.7 13.5 28.0 33.2 Real estate 12.1 24.
Slide 28: Housing Company Results and Plan: Orders
Housing Company Results and Plan 2. Housing orders FY2021 FY2020 FY2019 (Millions of yen) 1H Forecasts 1H 2H 1H 2H 1Q 1Q Year-start Backlog 184,800 ‐ 205,400 205,400 194,500 219,500 217,320 Growth Rate -10% ‐ -6% -6% -11% +6% +2% New construction ・ New Orders 91,898 195,865 70,291 175,319 190,806 20