Shikoku Kasei Holdings Corporation · TSE:4099
Shikoku Kasei — 9M FY2022 Earnings Presentation
59 slides from Shikoku Kasei's earnings presentation, Feb 15, 2023
Slide 1: Investor Briefing Shikoku Kasei HD Corp. FY2022 (9 months)
Investor Briefing Shikoku Kasei HD Corp. For FY 12 / 2022 (9months) 2023/2/15 SHIKOKU KASEI HOLDINGS CORPORATION （Tokyo Stock Exchange Prime Market 4099） 1
Slide 2: Topics
Topics １. Consolidated Financial Results ２. Financial Forecast for the Fiscal Year Ending 2023 ３. ‘Challenge 1000’ Long-Term Vision ４. Transition to Holding company ５. Appendix 2
Slide 3: 1. Consolidated Financial Results
1. Consolidated Financial Results 3
Slide 4: Financial Highlights
Financial Highlights Net sales, operating profit, ordinary profit, and profit attributable to owners of parent reached record high compared with the same period of the previous year (April to December) million yen Previous year* FY2022 April to December Change/Rate Remarks (Nine-month period) 2021 3
Slide 5: Trends in Net Sales and Operating Profit (9 months)
Trends in Net Sales and Operating Profit (9 months) Net sales significantly increased mainly in Chemicals Operations (Chemicals: +68.8, Housing Materials: +5.8), while operating profit margin decreased due to the increase in cost and profits (Chemicals: +7.6, Housing Materials: ▲2.0) 465.7 YoY 100 m
Slide 6: YoY Changes in Operating Profit
YoY Changes in Operating Profit Increase in profit Decrease in due to increase in profit due to Increase in profit Decrease in million yen sales decrease in due to increase in profit due to (Chemicals gross margin sales decrease in Operations) (Chemicals (Housing Materials gross margin 2,876 Operati
Slide 7: Trends in Net Sales and Operating Profit (3 months)
Trends in Net Sales and Operating Profit (3 months) • Total sales increased by 1.31 billion yen YoY. Chemicals Operations continued its sales increase • Total operating profit decreased by 270 million yen YoY. Chemicals Operations’ operating trend since the beginning of this year (up by 960 million
Slide 8: Operating Results by Segment: Chemicals (3 months)
Operating Results by Segment: Chemicals (3 months) • Sales of inorganic chemicals decreased by 380 million yen YoY. Orders of insoluble sulfur decreased due • Depreciation of the yen served as a tailwind for the company, boosting profit by 370 million to a decline in tire production resulting from r
Slide 9: Operating Results by Segment: Housing Materials (3 months)
Operating Results by Segment: Housing Materials (3 months) • Housing Materials Operations achieved an increase in operating profit worth 100 million yen, that is, up • Housing Materials Operations achieved an increase in sales worth 350 million yen, that is, 14.0% YoY. up 7.7% YoY. • This was largel
Slide 10: 2. Financial Forecast for the Fiscal Year Ending 2023
2. Financial Forecast for the Fiscal Year Ending 2023 10
Slide 11: Forecast of Consolidated Financial Results
Forecast of Consolidated Financial Results 100 million yen 640.0 614.8 Million yen Net Sales Previous year* 521.0 520.5 528.0 FY2023 510.0 (January to December Change/Rate Remarks 494.3 185.4 210.0 Housing (January to December) Materials 2022) 181.8 61,475 64,000 +2,525 • Chemicals Operations’ sales
Slide 12: Capital Investment and Depreciation
Capital Investment and Depreciation [Major capital investment for the year that ended December 2022] 90.2 100 million yen • 1.23 billion yen for the construction of a new plant for NEO-CHLOR (NEO2022) (total of 4.68 billion yen for 4.0 合計 3 years, completed) 11.6 その他 Other • 500 million yen for the
Slide 13: Dividend and Share Buy-Back Trends
Dividend and Share Buy-Back Trends [Shareholder Return Policy] • The Company aims to achieve “a total payout ratio of 50% based on consolidated financial results” under the “Challenge 1000” long-term vision Total return ratio for 2030. 56.6 54.9 54.1 51.1 [FY2022 Shareholder Return Policy] • The Com
Slide 14: 3. 'Challenge 1000' Long-Term Vision
3. ‘Challenge 1000’ Long-Term Vision 14
Slide 15: Outline of 'Challenge 1000'
Outline of ‘Challenge 1000’ STAGE 1 STAGE 2 STAGE 3 start present goal 2020 2022 2023 2025 2026 2029 Desired state in 2030 Toward “one- step-ahead, proposal” company with Dokusouryoku (creativity) Solve social issues with creative ideas, leading the progress of the world Financial Goals Pillars for
Slide 16: Quantitative Targets of 'Challenge 1000'
Quantitative Targets of 'Challenge 1000' 100 million yen Achieved STAGE 1 targets thanks to favorable exchange rate and the catch of the North American market conditions, and working on STAGE 2 New business sales New business sales OPM % Achieved STAGE 1 OPM Target level Net sales ROE % ROE Target l
Slide 17: Progress and Outlook
Progress and Outlook Progress in STAGE 1 (FY2020 to FY2022) Outlook for STAGE 2 (FY2023 to FY2025) Financial Financial Progress as planned against STAGE 1 goals No change from the initial target of "Challenge 1000" Goals Goals Apr. to Dec. 2022 (FY2022) Sales: 46.5 billion yen, Operating profit:
Slide 18: STAGE 2 Priority Measures and Quantitative Targets by Segment
STAGE 2 Priority Measures and Quantitative Targets by Segment Housing Materials Inorganic Chemicals 400.0 180.0 160.0 275.0 ☆ STAGE 2 Target Sales ☆ 138.9 128.4 124.0 120.7 140.0 130.3 138.0 250.0 103.1 192.2 197.7 207.2 192.5 210.0 181.8 185.4 100 million yen 1-12 1-12 1-12 1-12 1-12 Stage1 Stage 1
Slide 19: 4. Transition to Holding company
4. Transition to Holding company 19
Slide 20: Transition to Holding company
Transition to Holding company ■ Group Management System after January 1, 2023 Shikoku Kasei Holdings Corp. Shikoku Kasei Corporate Service CO., LTD. Shikoku Chemicals Corp. Shikoku Kasei Kenzai Corp. Group companies Group companies Other group companies related to Chemicals related to Housing Materi
Slide 21: Thank you for your attention!
Thank you for your attention! 21
Slide 22: 5. Appendix
SHIKOKU 5. Appendix 22
Slide 23: Corporate Profile
SHIKOKU Corporate Profile 23
Slide 24: Corporate Profile
Corporate Profile As of December 31, 2022 ◼Company name SHIKOKU KASEI HOLDINGS CORPORATION ◼Code number 4099 (Tokyo Stock Exchange Prime Market ) Industry：Chemicals ◼Incorporated October 10, 1947 ◼Head office Marugame, Kagawa Prefecture ◼President Mitsunori Watanabe ◼Capital 6,867 million yen ◼Numbe
Slide 25: Our Business
Our Business Chemicals （SHIKOKU CHEMICALS CORPORATION） Housing Materials （SHIKOKU KASEI KENZAI CORPORATION ） Inorganic Chemicals Interior, Raw materials for tires, etc. Exterior Finishes and Paving Materials Interiors Organic Chemicals For swimming pool and septic tank disinfectants Exterior Product
Slide 26: History
History Established in Marugame, Kagawa Prefecture with a capital of 2 million yen as a producer of carbon disulfide Oct 1947 (=> inorganic chemical products) No. 1 Tokushima Plant (now Tokushima Plant's Yoshinari location) was constructed and began operations in the Oct 1957 production of sodium su
Slide 27: History and Sales Trends
History and Sales Trends 2022 Net Sales Moved to Tokyo Stock 1975 Exchange Prime Market Moved to Tokyo Stock Exchange Section 1 1962 2016 GliCAP Listed on Tokyo Stock Microetching solution 2008 Exchange Section 2 for PWBs 2004 Advanced Materials 1991 Glicoat-SMD 1947 Establishment 1984 Insoluble Sul
Slide 28: Chemicals Operations
SHIKOKU Chemicals Operations 28
Slide 29: Inorganic Chemicals
Chemicals Operations Inorganic Chemicals 29
Slide 30: Inorganic Chemicals
Inorganic Chemicals [Major products] □ Carbon Disulfide …Essential materials for chemical fiber rayon □ Insoluble Sulfur …Rubber vulcanization agent million yen □ Sodium Sulfate …Warm bath effect accelerator for Inorganic bath additives Chemicals Synthetic detergent cleaning aid 10,081 (21.6％) FY202
Slide 31: Insoluble Sulfur - Product Introduction
Insoluble Sulfur -Product Introduction- □ Application: Vulcanizing agent for rubber □ Main customers: Domestic and overseas tire manufacturers □ The raw material rubber is hard, and it acquires the characteristic to extend and contract by adding sulfur and heating (vulcanizing). □ When normal sulfur
Slide 32: Organic Chemicals
Chemicals Operations Organic Chemicals 32
Slide 33: Organic Chemicals
Inorganic Chemicals million yen FY2022/12 [Major products] Consolidated □ Chlorianted Isocyanurates（NEO-CHLOR） Cumulative … for swimming pool and septic tank disinfectants Net Sales for sanitary products 32,380 Organic □ HIPOLKA … Wastewater/sludge treatment agent Chemicals 14,832 （31.9％） 33
Slide 34: Chlorinated Isocyanurates - Product Introduction
Chlorinated Isocyanurates -Product Introduction- □ Applications: Sanitizing agent for swimming pools and septic tanks, chlorine-based sanitizing agent for spas and home baths □ Main customers: Swimming pool operators, schools, general consumers (U.S.) □ Main component: Chlorinated Isocyanurates □ Co
Slide 35: Fine Chemicals
Chemicals Operations Fine Chemicals 35
Slide 36: Fine Chemicals
Fine Chemicals million yen FY2022/12 Consolidated Cumulative Net Sales 32,380 Fine Chemicals 7,466 （16.0％） [Major products] □ Glicoat-SMD… Water-soluble rust preventive agent for printed wiring boards (OSP) □ Advanced & Specialty Chemicals… Imidazoles (curing agent of epoxy resin) Resin modifier, ra
Slide 37: OSP: Organic Solderability Preservative
OSP: Organic Solderability Preservative Application: Water-soluble rust preventive agent for printed wiring boards OSP: Organic Solderability Preservative] □ Main customers: Printed wiring board manufacturers all over the world □ By forming an organic coating on the copper circuit of the printed wir
Slide 38: Focused Products (Printed Wiring Boards Agents)
Focused Products (Printed Wiring Boards Agents) ■ GliCAP® □ Adhesion improving agent between copper circuit and resin on printed wiring boards. □ Conventionally, unevenness was formed on surface by roughening (etching) the copper so that the adhesion to resin was improved by “mechanical bonding” (an
Slide 39: Advanced & Specialty Chemicals - Imidazoles
Advanced & Specialty Chemicals –Imidazoles □ Application: Curing agent and curing accelerator for epoxy resin*, raw material for drugs □ Main customers: Resin material manufacturers and drug manufacturers □ Imidazole is used in a wide range of applications, including curing agent for epoxy resin and
Slide 40: Advanced & Specialty Chemicals - Imidazoles applications
Advanced & Specialty Chemicals -Imidazoles Engine CPU Car navigation system [Laminated plate, sealing agent, [Liquid crystal sealing material] solder resist ink] Engine hood [CFRP (reinforced carbon fiber)] Frame structure [Adhesive for structures] Electric motor Tires [Tire grip improving agent] [I
Slide 41: Focused Products (semiconductor process materials)
Focused Products (semiconductor process materials) ◼ Advanced materials □ Advanced materials at our company refer to the products (compounds) that can improve various functions by blending them as materials for electronic parts such as semiconductors that are used in electronic devices, etc. □ Deman
Slide 42: Advanced & Specialty Chemicals - Product Introduction
Advanced & Specialty Chemicals -Product Introduction- ◼ Benzoxazine □ A resin with excellent heat resistance, flame resistance and electrical properties. □ Examination is being made as a semiconductors sealing agent and carbon fiber reinforced plastics (CFRPs) . ◼ A new isocyanuric acid derivatives
Slide 43: Housing Materials Operations
Housing Materials Operations 43
Slide 44: Interior, Exterior Finishes and Paving Materials
Housing Materials Operations 4. Interior, Exterior Finishes and Paving Materials 44
Slide 45: Interior, Exterior Finishes and Paving Materials
Interior, Exterior Finishes and Paving Materials million yen [Major products] □ Interior materials (silicate walls, natural material walls) Plastered wall materials with moisture control FY2022/12 function and harmful chemical substance and Consolidated daily odor adsorption/decomposition function C
Slide 46: Interior, Exterior Finishes and Paving Materials: Interior materials
Interior, Exterior Finishes and Paving Materials □ Interior materials □ The business started with “JULUX,” the first industrial product for plastered wall material in Japan, which was developed for in-house chemical glue CMC application. □ It is difficult to handle Juraku wall, traditional Japanese
Slide 47: Exterior and paving materials
Interior, Exterior Finishes and Paving Materials □ Exterior and paving materials □ We also expand our business to “exterior” to cover the outside of buildings and exterior parts, and “paving” to cover the surfaces of roads and approaches. □ Our exterior materials come in wide variations including co
Slide 48: 5. Exterior Products
Housing Materials Operations 5. Exterior Products 48
Slide 49: Exterior Products
Exterior Products million yen [Major products] Home Exterior Products □ Gates, fences, carports, and decks □ Accordion gates First product in Exterior (expansion type gates) industry FY2022/12 Products □ Art Wall which was 12,344 （26.5％） Consolidated (aluminum system fence) developed by our Cumulati
Slide 50: Home Exterior Products
Home Exterior Products □ In 1972, when the motorization was rapidly progressing, we devised an “accordion gate,” which can be easily opened and closed with an expansion mechanism, and which can respond to the residential situation with limited space in Japan, and it became the standard for gates in
Slide 51: Decorative Exterior Products
Decorative Exterior Products ■ Pathway shelter ■ Bicycle parking space ■ High strength car stops ■ Garbage accumulation storage 51
Slide 52: Efforts in Housing Materials Business
Efforts in Housing Materials Business □ We are adding to the lineup of high-strength exterior products that are resistant to wind and snow and promoting sales expansion, based on the fact that large-scale disasters such as typhoons have been recently happening one after another over the country. □ W
Slide 53: Long-term Vision Challenge 1000
Long-term Vision Challenge 1000 53
Slide 54: Business Reform Policy: Chemicals Operations
Business Reform Policy Chemicals Continue to develop and advance for the sake of the world Operations Desired State Strategic Scenario Make use of materials Accumulate sulfur handling and synthesis Inorganic which are difficult to handle in a recycling- reaction evaluation technologies oriented mann
Slide 55: Business Reform Policy: Housing Materials Operations
Business Reform Policy Housing Materials Design a new lifestyle in the future and contribute Operations to the community development around the world for everyone’s happiness Desired state Process to provide value Attract and acquire human resources Design a new lifestyle in the future and engineers
Slide 56: Companywide Reform Policy
Companywide Reform Policy ◼ Set six companywide reform policies toward realization of the desired state in 2030 and push forward with them mobilizing group-wide efforts. Desired state Toward “one- step-ahead, proposal” company with Dokusouryoku (creativity) in 2030 Solve social issues with creative
Slide 57: Progress on Companywide Reform Policy
Progress on Companywide Reform Policy ■ We are working to build a foundation that can accommodate diverse work styles, fostering a sense of self-improvement, and creating a framework for change, and we are generally making progress as planned. Item Topics ◆ Enhance brand value (Formulation of SHIKOK
Slide 58: YONPO-YOSHI - Contributions to Stakeholders
YONPO-YOSHI – Contributions to Stakeholders – Customers “One-step-ahead” values We will provide new values with our unique, state-of-the-art products and services. Employees Society Challenges and A better tomorrow growth We will contribute to the resolution of We will support a fulfilling life with
Slide 59: Disclaimer
Disclaimer This material is intended to help shareholders, investors, etc., understand pertinent information such as the Company’s management policy, plans, and financial status, and it does not solicit investment such as purchasing or selling stocks in the Company. The information contained in
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