Valqua Ltd. · TSE:7995
Valqua — Q2 FY2022.3 Earnings Presentation
34 slides from Valqua's earnings presentation, Nov 11, 2021
Slide 1: Financial Results for the Second Quarter of FY Ending March 31, 2022
Since 1927 FY2022.3 2027 November 11, 2021 （Ticker code: 7995） Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022 Hard & Seal Engineering Service Tech & Electronics Transportation System General Machinery Chemical & Energy Plant ＊This report contains forecasts and plan
Slide 2: 1-2Q Consolidated Performance and Business Overview
1-2Q (1H) of the Fiscal Year Ending March 31, 2022 Consolidated Performance and Business Overview 2H of the fiscal Year Ending March 31, 2022 and Full-year Forecast and Forward-looking Statements
Slide 3: 1-2Q of FY2022.3 Overview
1-2Q of FY 2022.3 Overview Consolidated Performance and Business Overview ■ Business performance recovered significantly due to the favorable business environment and the effects of offensive and defensive strategies. ■ Full-Year Earnings Forecast (p. 19) and Year-End Dividend Forecast (p. 15) revis
Slide 4: Consolidated Financial Results by Half Yearly
1-2Q of FY 2022.3 Consolidated Financial Results by Half yearly Consolidated Performance and Business Overview 1Q-2Q of 3Q-4Q of 1Q-2Q of 3Q-4Q of 1Q-2Q of 3Q-4Q of 1Q-2Q of FY2019.3 FY2019.3 FY2020.3 FY2020.3 FY2021.3 FY2021.3 FY2022.3 Net Sales 26,084 25,159 24,915 23,296 21,630 23,086 24,740 Gros
Slide 5: Analysis of Change Factor of Operating Profit
1-2Q of FY 2022.3 Analysis of Change Factor of Operating Profit Consolidated Performance and Business Overview +1,177 +1,011 +159 -300 -25 -166 2,696 Operating Personnel Expenses General Expenses In SGA expenses Depreciation Included SGA expenses Change of Total Amount of Profit of 1-2Q of FY2022.3
Slide 6: Balance Sheet and Cash Flows
1-2Q of FY 2022.3 Balance Sheet and Cash Flows Consolidated Performance and Business Overview Balance Sheet (Summary) Cash Flows (Summary) 1Q-2Q of End of End of End of 2Q of 1Q-2Q of 1Q-2Q of FY2022.3 FY2020.3 FY2021.3 FY2021.3 FY2020.3 FY2021.3 (YoY) Total Operating Liabilities 13,197 15,417 17,93
Slide 7: Sales by Industrial Market/Sales by Region
1-2Q of FY 2022.3 Sales by Industrial Market/Sales by Region Consolidated Performance and Business Overview Sales by Industrial Market Sales by Region 1Q-2Q of 1Q-2Q of 1Q-2Q of 1Q-2Q of 1Q-2Q of 1Q-2Q of FY2022.3 FY2022.3 FY2020.3 FY2021.3 FY2020.3 FY2021.3 (YoY) (YoY) Tech Market 8.1 BY 8.1 BY 9.9
Slide 8: Results by Segment: Seal Products Business
Results by Segment 1-2Q of FY 2022.3 Seal Products Business Consolidated Performance and Business Overview Growth in Tech Market in Japan and overseas Recovery in a wide range of Machinery Market 1Q-2Q of 1Q-2Q of Result by 1Q-2Q of 1Q-2Q of 1Q-2Q of 1Q-2Q of FY2022.3 FY2022.3 Segment FY2020.3 FY202
Slide 9: Results by Segment: High Performance Plastics Products Business
Results by Segment 1-2Q of FY 2022.3 High Performance Plastics Products Business Consolidated Performance and Business Overview Expansion of Tech Market to domestic SPE and overseas device manufacturers Improved profitability through business structural reforms 1Q-2Q of 1Q-2Q of Result by 1Q-2Q of 1
Slide 10: Results by Segment: Silicon Wafer Reclaim and Other Businesses
Results by Segment 1-2Q of FY 2022.3 Silicon Wafer Reclaim and Other Businesses Consolidated Performance and Business Overview High demand for silicon wafer reclaim business COVID-19 slows sales of H&S and other new businesses 1Q-2Q of 1Q-2Q of Result by 1Q-2Q of 1Q-2Q of 1Q-2Q of 1Q-2Q of FY2022.3
Slide 11: Quarterly Orders Received/Net Sales/Order Backlog
Results by Segment 1-2Q of FY 2022.3 Quarterly Orders Received/Net Sales/Order Backlog Consolidated Performance and Business Overview 1Q of 2Q of 3Q of 4Q of 1Q of 2Q of Change Factor Compared FY2021.3 FY2021.3 FY2021.3 FY2021.3 FY2022.3 FY2022.3 to Previous Quarter Consolidated10,475 10,756 11,092
Slide 12: Capital Investment/Research & Development and Others
Capital Investment/ 1-2Q of FY 2022.3 Research & Development and Others Consolidated Performance and Business Overview Capital Investment 1Q-2Q of 1Q-2Q of 1Q-2Q of FY2022.3 (projects in construction and in progress） FY2020.3 FY2021.3 (YoY) ・Promotion of development for acceleration of DX Capital 1,
Slide 13: Impact of the Spread of COVID-19
1-2Q of FY 2022.3 Impact of the Spread of the COVID-19 Consolidated Performance and Business Overview Influence on Results of 1Q-2Q of FY2022.3 Influence on Company Activities such as Production ・Operating rates at ASEAN production sites due to suspension of employees' attendance ・There were no part
Slide 14: Efforts to Create Value
1-2Q of FY 2022.3 Efforts to Create Value Consolidated Performance and Business Overview CEO Toshikazu Takisawa holding the trophy Received an award from Lam Research Corp., a U.S. semiconductor production equipment manufacturer ■ Received the 2021 Supplier Excellence Award 2021 "General Excellence"
Slide 15: Stockholders Return
1-2Q of FY 2022.3 Stockholders Return Consolidated Performance and Business Overview End of 2Q (Interim) Year-end Annual Treasury Stock Total Return Ratio Dividend Dividend Dividend Acquisitions FY2020.3 50.0 yen 50.0 yen 100.0 yen 60.3% FY2021.3 45.0 yen 50.0 yen 95.0 yen 54.2% 55.0 yen 105.0 yen 5
Slide 16: 2H and Full-year Forecast and Forward-looking Statements
1-2Q (1H) of the Fiscal Year Ending March 31, 2022 Consolidated Performance and Business Overview 2H of the fiscal Year Ending March 31, 2022 and Full-year Forecast and Forward-looking Statements
Slide 17: Recognizing Business Environment (Change from 1H)
Recognizing Business Environment 2H (3-4Q) of (Change from 1H) FY 2022.3 Environment Recognition Influence on Results • Semiconductor manufacturing equipment shipments and Seal Products Tech semiconductor device production volumes remain high High Performance Plastics Market • Active movements to ex
Slide 18: Implementation of Measures in 2H FY2022.3
2H (3-4Q) of Implementation of Measures in FY2022.3 FY 2022.3 Implement measures in line with the strategy to maximize corporate value in the future while monitoring the convergence of COVID-19 and changes in the business environment ■ Strengthen R&D and production systems for strategic products “At
Slide 19: Revised Forecast for FY2022.3
2H (3-4Q) of Revised Forecast for FY2022.3 FY 2022.3 Full-Year Earnings Forecast Revised Upward on Basis of 1H Earnings Level and Business Environment Outlook Prior Revised Forecast Forecast FY2021.3 FY2022.3 FY2022.3 One year ahead of schedule (YoY) (YoY) Operating profit and 44,717 48,500 51,800 N
Slide 20: Details of Revised Forecast
2H (3-4Q) of Details of Revised Forecast FY 2022.3 Sales by Industrial Market Sales & Profit by Segment <Prior> <Revised> <Prior> <Revised> FY2021.3 FY2022.3 FY2022.3 FY2021.3 FY2022.3 FY2022.3 (YoY) (YoY) (YoY) (YoY) Tech Market 16.5 BY 18.3 BY 21.1 BY Net Sales 31,349 32,000 (+2.1%) 34,900 (+11.3%
Slide 21: Details of Revised Forecast (Half yearly)
2H (3-4Q) of Details of Revised Forecast (Half yearly) FY 2022.3 Revised forecast assumptions Sales by Industrial Market Sales & Profit by Segment 2H 2H ・The exchange rate is 1$=110 1H 1H FY2022.3 FY2022.3 yen for the full-year FY2022.3 (Changes) FY2022.3 (Changes) ・The impact of the rise in raw mat
Slide 22: Medium-term Business Plan NF2022
＜References＞ Medium-term Business Plan “NF2022” Focusing on the Coming 100th Anniversary
Slide 23: NF2022 Basic Policy (1)
Basic Policy (1) Reform for the • Establishing a system that can resist environment change Coming 100 Year • Acquiring value creation capacity that will work in the next age th NF(New Frontier)2022 We will become one as a Group and work on reconstructing the Company’s base foundation under “THE VALQ
Slide 24: Basic Policy (2)
Basic Policy (2) 1.Expanding profitability of existing business area and acquisition of new business area by selection and concentration Implement concentrated investment on strategy for growing market. Acquire new business opportunity through penetration of H&S* concept. *Hard & Seal engineering se
Slide 25: Management Target Value
Management Target Value As the first step to achieving the long-term management target, work on recovering operating profit margin to 10% and becoming a resilient company (Millions of yen) Final FY of Final FY of Important factors and issues for “NV・S8” “NF2022” achievement FY2020.3 FY2023.3 % Chang
Slide 26: Main Strategy Theme (1)
Main Strategy Theme (1) Strategic Products for Growing Markets Tech Final FY of “NV S8” Plant Tech Final FY of “NF2022” Plant 37.8% 31.5% 32.6% Sales by Industrial Market Sales by Industrial Market 30.0% Tech 15.7 FY2020.3 Tech 20.8 Machinery 16.9 Plant 15.2 Machinery 17.3 Other 0.2 Machinery Plant
Slide 27: Main Strategy Theme (2)
Main Strategy Theme (2) R&D Additional investment in management resource of R&D ・・・Increase Research & Development Expenses to around an annual rate of 20% R&D Strategy (introduction of AI, strengthening system and such). for Long-term Promote Open Innovation Value Creation ・・・Accelerate and expand
Slide 28: Main Strategy Theme (3)
Main Strategy Theme (3) Creating Base Foundation and Improving Efficiency Responding to Work-style Reform ・・・Introducing company-wide teleworking. ・・・Improving employee motivation by reforming personnel and evaluation system. Working towards FY2027.3 Growth of Company and Employee through Engagement
Slide 29: Management Target and Planning Target Value (1)
Management Target and Planning Target Value (1) Sales by Industrial Market/Sales by Region (Billions of yen) ( Millions of yen) Final FY of Final FY of Final FY of “NF2022” Final FY of “NF2022” “NV S8” “NV S8” FY2020.3 FY2023 % Change FY2020.3 FY2023 % Change Japan 33,958 37,000 +9.0% Tech Market 15
Slide 30: Management Target and Planning Target Value (2)
Management Target and Planning Target Value (2) Results by Segment/Capital Investment (Millions of yen) 2 Years 3 Years Final FY of Final FY of Total of Total of “NV・S8” “NF2022” “NV・S8” “NF2022” Capital FY2020.3 FY2023.3 % Change Expenditures (based on 6.4 12.0 billion yen billion yen construction)
Slide 31: Medium-term Business Plan NF2022
＜References＞ Medium-term Business Plan “NF2022” Focusing on the Coming 100th Anniversary
Slide 32: A Challenging Company that Challenges the Future and the Unknown
Focusing on the Coming 100th Anniversary - Corporate Image We Aim for - Corporate Image we aim to become in the coming 100th anniversary A Challenging Company that Challenges the Future and the Unknown - To contribute to the richness of human race and global environment - 1. Endless pursuit and moni
Slide 33: Long-term Management Target
Focusing on the Coming 100th Anniversary - Long-term Management Target - Setting high level targets that cannot be Ambitious development towards reached without a challenge new business and fields. Change FY2020.3 FY2027.3 Average Annual Active implementation of M&A and Change Partnership. Net Sales
Slide 34: THE VALQUA WAY
yAtiuA THE VALQUA WAY Value & Quality (Create value and improve quality) * For the benefit of society + With fairness * For stakeholders worldwide * Through creative technology (1) Runa business that contributes to society (2) Be an inspiration to the customers (3) Hold respect for individuality and