Aica Kogyo Company, Limited · TSE:4206
Aica Kogyo — Investor Presentation (May 2023)
30 slides from Aica Kogyo's investor presentation, May 25, 2023
Slide 1: New Medium-Term Business Plan Value Creation 3000 & 300
New Medium-Term Business Plan Value Creation 3000 & 300 Aica Kogyo Co.,Ltd. アイカ工業株式会社 May 25, 2023 © Aica Kogyo Co., Ltd. all rights reserved. 1
Slide 2: Table of Contents
Table of Contents AICA’s Goals 1． Philosophy/Strategy P3 2． AICA’s Value Creation Model P4 3． Vision P5 4． Historical Consolidated Results P6 5． Toward the 90th Anniversary P7 New Medium-Term Business Plan (MTBP) “Value Creation 3000 & 300” 6． Kick-off of the New (3rd) Medium-Term Business Plan P9 7
Slide 3: Philosophy/Strategy
1 Philosophy/Strategy © Aica Kogyo Co., Ltd. all rights reserved. Medium-Term Business Plan 3
Slide 4: AICA's Value Creation Model
2 AICA’s Value Creation Model Source of Value Creation (Business Model) AICA’s strengths lie in our extensive product range that leverages the advantages in Chemistry and Design, as well as a solid customer base, overseas business bases, brand value, excellent human assets, the trust of Achievement
Slide 5: Vision
3 Vision We aim to provide new value to society and continuously improve our corporate value by helping solve social issues through a fusion of Chemistry and Design. Reassurance Comfort Environmental Easier well-being construction Safety Long-life Universal Chemistry × Design Health design Chemical
Slide 6: Historical Consolidated Results
4 Historical Consolidated Results Business performance during this period linked to area of Due to the success of AICA experiences growth despite flat non-residential building starts in Japan CERARL, AICA experiences Business domestic market due to overseas expansion growth even while the performanc
Slide 7: Toward the 90th Anniversary
5 Toward the 90th Anniversary In October 2026, Aica Kogyo will celebrate our 90th anniversary. In accordance with our Corporate Principle of “Challenge and Creation,” the AICA Group has established a unique position as a chemical manufacturer by continuously creating new added value through the powe
Slide 8: Medium-Term Business Plan (MTBP)
Medium-Term Business Plan (MTBP) FY2023 to FY2026 © Aica Kogyo Co., Ltd. all rights reserved. Medium-Term Business Plan 8
Slide 9: Kick-off of the New (3rd) Medium-Term Business Plan
6 Kick-off of the New (3rd) Medium-Term Business Plan As original sales target (JPY240 billion of 2nd MTBP) has been achieved Value Creation one year ahead of schedule, we step up to a new MTBP this year. 3000 & 300 JPY 300 Consolidated Net Sales Change Billion [JPY billion] ＆Grow2400 90th anniversa
Slide 10: Review for 2nd Medium-Term Business Plan (1) Managerial KPI
7 Review for 2nd Medium-Term Business Plan (1) Managerial KPI Growth in overseas market and other factors brought one-year-ahead achievement of our Sales target. On the other hand, due to hikes on raw material prices, profitability declined. Also, due to large impairment loss, capital efficiency dec
Slide 11: Review for 2nd Medium-Term Business Plan (2) by Segment
7 Review for 2nd Medium-Term Business Plan (2) by Segment Chemical Products: Overseas market contributed, but Exchange rate fluctuation & Raw Materials’ hike impacted severely, resulting in lower profitability. Laminates & Building Materials: Both Domestic and overseas sales equally grew, but still
Slide 12: Review for 2nd MTBP (3) Capital Investment and Business Investment
7 Review for 2nd Medium-Term Business Plan (3) Capital Investment and Business Investment We generated cash in Japan, and actively reinvested the cash in the overseas growth market, and made steady investments in a well-balanced manner in both capital investment and business investment. Investment V
Slide 13: Review for 2nd Medium-Term Business Plan (4) Materiality
7 Review for 2nd Medium-Term Business Plan (4) Materiality AICA identified and addressed seven key issues to build a foundation to enhance the soundness of the entire Group. See pages 10 and 11 for details. Sales and growth market development targets were achieved one year ahead of schedule. Althoug
Slide 14: Major Topics of the 2nd Medium-Term Business Plan
8 Major Topics of the 2nd Medium-Term Business Plan Segment Region Achievement Key words Partial Business Transfer from DIC Corporation (Phenolic Resin Business) New Market Development of three-dimensional decorative hard-coat film as an alternative to painting New Market Japan automotive exteriors
Slide 15: Recognizing Issues in the New Medium-Term Business Plan
9 Recognizing Issues in the New Medium-Term Business Plan Internal resources and assets External resources and assets Intellectual Manufacturing Human Financial Social Natural resources assets assets capitals resources resources ⚫ Launch next- ⚫ Aging plants ⚫ Recruit and develop ⚫ Deterioration of
Slide 16: Fundamental Policies of the Value Creation 3000 & 300
10 Fundamental Policies of the New Medium-Term Business Plan “Value Creation 3000 & 300” Financial Non-financial 1. To Improve Profitability 3. To Build robust Management Base In our “Four Segment” ; Chemical Products – JAPAN / We aim to be a sustainable corporate entity by focusing seven key themes
Slide 17: New Medium-Term Business Plan - Managerial KPI
11 New Medium-Term Business Plan - Managerial KPI Profitability Growth Climate Change Human Resource Financial Target Non-Financial Target Consolidated Net Sales Consolidated Ordinary Profit Climate Change JPY 300 billion JPY 30 billion GHG*2 Emission Reduction (14%) (Scope1+2) (compared with 2022)
Slide 18: New Medium-Term Business Plan - Financial Target by Segment
12 New Medium-Term Business Plan – Financial Target by Segment CAGR FY2022A FY2023P YoY FY2026P FY2022-2026 [JPY million] Sales 141,312 145,000 102.6% 175,000 5.5% Operating Profit 7,494 7,600 101.4% 12,000 12.5% Chemical Products % vs Net Sales 5.3% 5.2% 6.9% EBITDA 10,946 11,700 106.9% 17,300 12.1
Slide 19: Priority Strategic Policy (1) Profitability Improvement
13 Priority Strategic Policy of New Medium-Term Business Plan (1) Profitability Improvement AICA will focus on improving profitability in the domestic Chemical Products business and overseas business for both Laminates & Building Materials and Chemical Products. For Laminates & Building Materials bu
Slide 20: Priority Strategic Policy (2) Creation and Expansion of Growth Businesses
13 Priority Strategic Policy of New Medium-Term Business Plan (2) Creation and Expansion of Growth Businesses By focusing on solving social issues and entering/cultivating untapped markets, we will create growth businesses in a well-balanced manner both in Japan and overseas for both Chemical Produc
Slide 21: Priority Strategic Policy (3) Creation of a Sound Business Infrastructure
13 Priority Strategic Policy of New Medium-Term Business Plan (3) Creation of a Sound Business Infrastructure Addressing the seven material issues passed on from the previous Medium-Term Business Plan, we will focus on addressing “climate change” and “building a foundation for human capital manageme
Slide 22: Climate Change Response Policy (1) Responding Through Our Products
New Medium-Term Business Plan - Climate Change Response Policy 14 (1) Responding to Climate Change Through Our Products Based on AICA's resin synthesis technology and material utilization technology, we will develop and expand sales of products that respond to the climate change issues. This will al
Slide 23: Climate Change Response Policy (2) GHG Emission Reduction Targets
New Medium-Term Business Plan -Climate Change Response Policy 14 (2) GHG* Emission Reduction Targets Reduce GHG* emissions by 14% in FY2026 and by 30% in FY2030 (Scope 1 & 2, compared to FY2022) with the aim of achieving carbon neutrality in FY2050. AICA Group GHG* emissions reduction plan (Scope 1
Slide 24: Human Capital Investment Policy
15 New Medium-Term Business Plan - Human Capital Investment Policy With the aim of maximizing the value of human capital, AICA will proceed human resource development and environmental improvement in line with business issues to achieve sustainable growth. Business Issues Human Resource and Environm
Slide 25: Capital Policy (1) Cash Allocation
16 New Medium-Term Business Plan - Capital Policy (1) Cash Allocation NEXT JUMP 1500 annual average CF C&C 2000 annual average CF Change & Grow 2400 annual average CF (FY2013-FY2016) (FY2017-FY2020) (FY2021-FY2022) Active investment and enhancement of Continuing to make active investments, enhancing
Slide 26: Capital Policy (2)
16 New Medium-Term Business Plan - Capital Policy (2) Previous Medium-Term New Medium-Term Business Plan Policies Business Plan Results Maintain Cash equivalents JPY 50.993 billion Secure liquidity for about two to three months of monthly sales to strengthen our risk tolerance (as of end Mar. 2023)
Slide 27: New Medium-Term Business Plan - Dividend Policy
17 New Medium-Term Business Plan -Dividend Policy In order to return profits to shareholders and to realize sustainable corporate growth, our fundamental policy is to pay dividends after comprehensively considering the consolidated results for each term, the dividend payout ratio, and internal reser
Slide 28: [Appendix] Materiality (1)
[Appendix] New Medium-Term Business Plan -Materiality (1) Scope of Item FY2022A FY2023-FY2026 Coverage Net sales: JPY 242 billion Ordinary profit: JPY 22.0 billion Net sales: JPY 300 billion Ordinary profit: JPY 30 billion (1) Provide ROE:6.9% ROIC:8.1% ROE: Approx. 10%, ROIC: Approx. 8% AICA Group
Slide 29: [Appendix] Materiality (2)
[Appendix] New Medium-Term Business Plan -Materiality (2) Scope of Item FY2022A FY2023-FY2026 Coverage Labor productivity (added value ÷ number of employees): Labor productivity: JPY 22.8 million /person JPY 21.0 million /person Human capital investment: JPY 0.87 billion Human capital investment: Mo
Slide 30: © Aica Kogyo Co., Ltd. all rights reserved.
“FY” in this report indicates the fiscal year ending March 31 of the succeeding year. This document has been translated from the Japanese original for reference purpose only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The m
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