Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q1 2023 Earnings Presentation
29 slides from Sekisui Chemical's earnings presentation, Jul 28, 2023
Slide 1: Presentation of Financial Results 1Q FY2023
SEKISUI CHEMICAL CO., LTD. For 1Q FY2023, ending March 31, 2024 Presentation of Financial Results Futoshi Kamiwaki Representative Director Senior Managing Executive Officer July 28, 2023
Slide 2: Results for 1Q and Forecasts for 1H FY2023: Forex Rates
Results for 1Q and Forecasts for 1H FY2023 FY2022 FY2023 Forex rate Initial Plan 1Q 1H 1Q 2Q 1H (Apr.) In-house ¥133/US$ ¥140/US$ ¥139/US$ ¥133/US$ assumptions ‐ ‐ ¥142/€ ¥152/€ ¥151/€ ¥142/€ Results ¥130/US$ ¥134/US$ ¥137/US$ (Avg. rate for ‐ ‐ each term) * ¥138/€ ¥139/€ ¥149/€ * Export data is sub
Slide 3: Overview of 1Q FY2023 Results
Overview of 1Q FY2023 Results ▌ Increases in net sales, operating profit and ordinary profit ▌ Substantial increase in the bottom line owing to the sale of cross-shareholdings ▌ While net sales fell below expectations, operating profit came in slightly ahead of plans 1Q FY2022 1Q FY2023 Difference (
Slide 4: 1Q FY2023 Results by Segment
1Q FY2023 Results by Segment ▌ Increases in net sales and operating profit in the Housing and UIEP companies; operating profit came in at around the same level as the corresponding period of the previous fiscal year in the HPP Company; decreases in net sales and operating profit in the Medical Busin
Slide 5: Outlook for Market Conditions
Outlook for Market Conditions Housing・Visitors (YoY) Number of Automobiles Manufactured (YoY) Despite a substantial decrease in 1Q exhibition visitors, signs of a Trends in the 1Q of FY2023 slightly below initial expectations owing recovery; the 2Q projected to come in essentially around the same ma
Slide 6: 1H FY2023 Forecasts by Segment
1H FY2023 Forecasts by Segment ▌ Growth in margins to offset the substantial decline in sales volumes and product mix compared with plans owing to weak housing and consumer goods market conditions in Europe, the U.S., and Japan; forecast to achieve operating profit plans on the back of efforts to co
Slide 7: 1H FY2023 Forecasts by Segment (1Q & 2Q)
1H FY2023 Forecasts by Segment (1Q & 2Q) ▌ Anticipating a certain degree of recovery in demand with the HPP Company forecast to experience significant growth in the 2Q; profit projected to substantially decline owing to the significant impact of the drop in housing orders; continued increase in Grou
Slide 8: 1H FY2023 Forecasts: Analysis
1H FY2023 Forecasts: Analysis ▌ Despite a substantial decline in sales volumes and product mix compared with plans owing to the impact of weak demand in Japan and overseas, thoroughgoing efforts to expand margins; net sales and operating profit forecast to increase also on the back of efforts to red
Slide 9: Overview of 1H FY2023 Forecasts
Overview of 1H FY2023 Forecasts ▌ Downward revision in net sales ▌ Operating profit and ordinary profit forecast to come in in line with plans ▌ Upward revision in the bottom line owing to the gain on sales of cross-shareholdings ▌ Interim dividend per share forecast to come in in line with initial
Slide 10: Overview of FY2023 Forecasts
Overview of FY2023 Forecasts ▌ Downward revision in net sales ▌ Operating profit and ordinary profit forecast to come in in line with plans ▌ Upward revision in the bottom line FY2023 FY2022 FY2022 Difference Plan (Apr.) Difference Forecasts (JPY Billion) Net sales 1,242.5 1,293.5 +51.0 1,312.0 -18.
Slide 11: HPP Company: Overview of 1H FY2023 Forecasts
HPP Overview of 1H FY2023 Forecasts Company ▌ Construction and consumer goods demand in Europe, the U.S., and Japan trending below expectations; despite a substantial decline in sales volumes and product mix, continued efforts to promote the shift to high-performance products mainly in the Mobility
Slide 12: HPP Company: Three Strategic Fields
HPP Three Strategic Fields Company Net Sales Trends and Progress Growth driving Growth potential 11 businesses clarified as strengthening the current PF in the Drive 2.0 Medium-term Management Plan. Electronics Electronics Mobility (semiconductor and display materials) Mobility (high-performance int
Slide 13: Housing Company: Overview of 1H FY2023 Forecasts
Housing Overview of 1H FY2023 Forecasts Company ▌ 1Q progress in excess of plans owing to the leveling out of sales as well as efforts to increase unit prices and control fixed costs ▌ While efforts to increase unit prices and reduce costs offset the sharp rise in component costs and effects of fore
Slide 14: Housing Company: KPIs by Business
Housing KPIs by Business Company Housing Business New Housing Orders (YoY) Number of Orders by Type of Construction Smart House-related Indicators* • Downward YoY revision of forecasts for the • 1Q: Slowdown in the subdivision and ready-built • Steady progress in each of the indicators; number of or
Slide 15: UIEP Company: Overview of 1H FY2023 Forecasts
UIEP Overview of 1H FY2023 Forecasts Company ▌ Despite a decline in residential demand in Japan and weak non-residential market conditions, undertake thoroughgoing efforts to secure margins; upward revision in operating profit plans • Japan: Focus on efforts to secure margins and expand sales of pri
Slide 16: UIEP Company: Three Strategic Fields
UIEP Three Strategic Fields Company Net sales in the Three Strategic Fields Building and Performance Construction and Fire resistant and non- Pipe Systems flammable materials materials (railroad industrial piping Infrastructures Composite Materials sleepers, etc.) Pipe and joint materials for buildi
Slide 17: Medical Business: Overview of 1H FY2023 Forecasts
Medical Overview of 1H FY2023 Forecasts Business ▌ Despite the continued impact of delays in bringing new products to the market in the U.S., projected to achieve operating profit plans on the back of the recovery in diagnostics demand in Japan and overseas, growth in sales of blood coagulation reag
Slide 18: Medical Business: Overview by Business
Medical Overview by Business Business Net sales by Business and Overview of Progress Overseas testing Diagnostics (Japan) Diagnostics (overseas) system • 1Q: Recovery trend in POC and other outpatient test demand • 1Q: Significant impact of delays in bringing new products to the market • 2Q: Focus o
Slide 19: Financial Results 1Q FY2023
Financial Results 1Q FY2023 18
Slide 20: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2023 Jun. 30, 2023 Difference Consolidated Increased: 0 Subsidiaries subsidiaries 148 147 Decreased: 1 Subsidiaries*1 Affiliates Increased: 0 Subsidiaries 7 7 (Equity Method) Decreased: 0 Subsidiaries *1 SEKISUI (SHANGHAI) ENVIRONMENTA
Slide 21: Summary of Profit and Loss
Summary of Profit and Loss + 1Q FY2022 1Q FY2023 Difference (JPY billion) Net sales 282.3 285.4 +3.1 Gross profit 84.5 87.6 +3.1 Gross profit margin 30.0% 30.7% +0.7% Selling, general and administrative expenses 70.7 72.3 +1.6 Foreign exchange gains: +4.4 Operating profit 13.8 15.3 +1.4 Share of pro
Slide 22: Balance Sheets (Assets)
Balance Sheets (Assets) Mar.31 Inventories (B/S item) 2023 Difference Ready-built housing (products) 37.8 +5.1 Prepared land for subdivision Mar. 31, 2023 Jun. 30, 2023 Difference housing 65.7 +1.6 (JPY billion) Land under preparation (work in process) 11.4 +1.4 Housing under construction Cash and d
Slide 23: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (JPY billion) Mar. 31, 2023 Jun. 30, 2023 Difference Non-interest-bearing liabilities 375.1 365.7 -9.4 Interest-bearing liabilities 120.5 120.9 +0.5 Net profit: +24.1 [Net interest-bearing liabilities] [19.4] [19.5] [+0.2] Dividends paid: -12.9 Total liabili
Slide 24: Consolidated Cash Flows
Consolidated Cash Flows (JPY billion) 1Q FY2022 1Q FY2023 Cash flows from operating activities -2.1 11.1 Cash flows from investing activities -10.2 7.9 Cash flows from financing activities -28.5 -23.3 Net increase in cash and cash equivalents -37.6 -0.8 Cash and cash equivalents at end of period 96.
Slide 25: Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure FY2023 1Q FY2022 1Q FY2023 Difference FY2022 Difference (JPY Billion) Plan Depreciation*1 11.4 11.9 +0.4 47.7 50.3 +2.6 Goodwill and other amortization*2 0.6 0.6 0 2.7 2.7 0 Capital expenditures 16.4 17.2 +0.8 56.
Slide 26: Forward-looking statements
This slide presentation contains forward-looking statements. These statements are based on current expectations and beliefs. However, actual results may differ from those expressed or implied due to a number of factors and uncertainties such as changes in the global economy and our business, competi
Slide 27: Housing Company Results and Forecasts
Housing Company Results and Forecasts * Including Tochigi Sekisui Heim Co., Ltd. newly consolidated in December 1. Main data in Housing business 5ｚｚｚｚｚｚｚｚｚｚｚｚｚ FY2023 FY2022 1H Forecasts 1H 2H 1Q 1Q Net sales (JPY billion) 121.0 262.8 115.7 260.2 277.2 Housing 77.3 172.5 76.6 177.2 186.4 CONSOLIDATE
Slide 28: Housing Company Results and Forecasts: Orders and Starts
Housing Company Results and Forecasts 2. Housing orders FY2023 FY2022 FY2021 1H 1H 2H 1H 2H (Millions of yen) 1Q Forecasts 1Q Year-start Backlog 164,300 ‐ 185,000 185,000 186,900 184,800 192,500 New construction ・Renovation Growth Rate -11% ‐ ±0% ±0% -3% -10% -1% New Orders 90,412 197,519 96,543 203
Slide 29: SEKISUI
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