Asahi Yukizai Corporation · TSE:4216
Asahi Yukizai — FY2022 Earnings Presentation
54 slides from Asahi Yukizai's earnings presentation, May 25, 2023
Slide 1: Presentation of Financial Results for FY Ended March 31, 2023 and Midterm Business Plan GNT2025
Presentation of Financial Results for the Fiscal Year Ended March 31, 2023 and Midterm Business Plan "GNT2025" May 25, 2023 ASAHI YUKIZAI CORPORATION
Slide 2: Contents
Contents 1 Business Overview 3 Dividends 2 Financial Results for FY2022 4 Forecast for FY2023 • Summary • Forecast Assumptions: Business Environment • Consolidated Financial Results • Major Issues • Company-wide Profit/Loss Transition • Company-wide Profit/Loss Estimate • Valve & Piping Systems Divi
Slide 3: Business Overview
RE Business Overview ASAHI YUKIZAI CORPORATION
Slide 4: Asahi Yukizai Group's Three Business Segments
Business Overview Asahi Yukizai Group's Three Business Segments Water Treatment & Natural Valve & Piping Systems Divisions Resources Exploitation Divisions Net sales 8 billion yen Net sales 48.5 billion yen Operating profit 0.5 billion yen Operating profit 10.7 billion yen 10% FY2022 Net sales Resin
Slide 5: Financial Results for FY2022
Financial Results for FY2022
Slide 6: Summary
Summary Record-high sales and profit Net sales 77.1 billion yen Operating profit 11.9 billion yen <Our initiatives> <External factors> Adapt to changes in the environment Non-continuous environmental change and continue to implement initiatives. Decrease in global supply capacity due Maintain and ex
Slide 7: Consolidated Financial Results
Consolidated Financial Results Amount: million yen Changes from the FY2021 results FY2022 results previous year Amount of Rate of 1H 2H Full year 1H 2H Full year change change Net sales 29,432 35,299 64,732 35,938 41,161 77,099 +12,368 +19.1% Operating 2,492 4,083 6,575 5,339 6,608 11,947 +5,373 +81
Slide 8: Company-wide Profit/Loss Transition
Company-wide Profit/Loss Transition Sales: 100 million yen Operating Profit: 100 million yen 800 140 120 600 100 80 400 60 40 200 20 0 0 △ 20 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 9: Valve & Piping Systems Divisions -- Full Year
Valve & Piping Systems Divisions -- Full Year Semiconductor related businesses are strong both in Japan and overseas. Sales increased both in Japan and overseas and profit increased due to the effect of the yen’s depreciation, etc. FY2022 Amount: million yen FY2021 Results Amount of change Rate of c
Slide 10: Valve & Piping Systems Business – Variation Analysis for Net Sales & Operating Profit
Valve & Piping Systems Business – Variation Analysis for Net Sales & Operating Profit for the Full year Amount: million yen Amount: million yen Net Sales: +10,807 Operating Profit: +5,772 Sales Positive factor Operating Profit Positive factor +7,010 48,532 +2,875 +1,230 +3,145 10,669 37,725 -310 +2,
Slide 11: Resin Divisions -- Full year
Resin Divisions -- Full year Sales increased in all businesses including foundry materials, foam material, and electronics materials. Profit decreased due to increase in raw material prices. Amount: million yen FY2021 FY2022 Results Amount of change Rate of change Net sales 18,608 20,550 +1,942 +10.
Slide 12: Resin Divisions – Variation Analysis for Net Sales & Operating Profit
Resin Divisions – Variation Analysis for Net Sales & Operating Profit for the Full year Amount: million yen Amount: million yen Net sales: +1,942 Operating profit: -19 Sales Positive factor Operating Profit Positive factor Negative factor +730 20,550 +1,385 +430 +205 +575 18,608 819 +115 801 -1,515
Slide 13: Water Treatment & Natural Resources Exploitation Business -- Full year
Water Treatment & Natural Resources Exploitation Business -- Full year Both sales and profit decreased due to delay in the progress of construction for the water treatment business, though the excavation work for a geothermal power plant made a good progress. FY2022 Amount: million yen FY2021 Result
Slide 14: Water Treatment & Natural Resources Exploitation Business -- Variation Analysis
Water Treatment & Natural Resources Exploitation Business -- Full year Amount: million yen Amount: million yen Net sales: -382 Operating profit: -252 Sales Positive factor Negative factor Operating Profit Positive factor Negative factor 8,398 724 8,017 472 FY2021 Water Resource Environmental Mainten
Slide 15: Capital Investment, Depreciation, and Overseas Sales
Capital Investment, Depreciation, and Overseas Sales Status of capital investment and depreciation Trends in overseas sales and overseas sales ratio Amount : 100 million yen 60.0 Sales: 100 million yen 300 250 200 50.0 150 100 50 40.0 0 20年 21年 22年 FY2020 FY2021 FY2022 度 度 度 30.0 樹脂事業 Resin Division
Slide 16: Non-operating income/expenses
Non-operating income/expenses Amount: million yen FY2021 FY2022 Amount of change Non-operating income 524 303 -220 Interest income 10 20 10 Dividend income 119 139 20 Foreign exchange gains 268 - -268 Rental income from real 86 87 1 estate Other 40 58 18 Non-operating expenses 86 110 24 Interest exp
Slide 17: Extraordinary income/losses
Extraordinary income/losses Amount: million yen FY2021 FY2022 Amount of change Extraordinary income 19 3 -17 Gain on sale of non-current 19 3 -16 assets Gain on sale of investment 1 0 -1 securities Extraordinary losses 259 150 -110 Loss on sale of non- 5 3 -2 current assets Loss on retirement of 138
Slide 18: Comparative Balance Sheet
Comparative Balance Sheet Amount: million yen As of March As of March As of March As of March 31,2022 31,2023 31,2022 31,2023 Notes and accounts payable - trade and Cash and deposits 14,311 13,928 electronically recorded obligations - operating 9,773 11,689 Notes and accounts receivable - trade, and
Slide 19: Cash Flows
Cash Flows Amount: million yen Amount of FY2021 FY2022 change Cash flows from operating activities 7,175 5,841 -1,334 Cash flows from investing activities -1,655 -4,836 -3,181 Cash flows from financing activities -2,064 -1,871 +193 Total cash flows 3,456 -866 -4,322 Effect of exchange rate changes o
Slide 20: Dividends
RE Dividends ASAHI YUKIZAI CORPORATION
Slide 21: Dividends
Dividends • Aiming at an increased dividend through continuous increase of sales and profit while ensuring a stable dividend. Year-end dividend per share (yen) 70 Interim dividend per share (yen) 60 50 50 50 45 40 30 30 35 25 25 25 25 15 15 30 25 25 25 25 20 15 15 Fiscal Year FY2015 FY2016 FY2017 FY
Slide 22: Forecast for FY2023
RE Forecast for FY2023 ASAHI YUKIZAI CORPORATION
Slide 23: Forecast Assumptions: Business Environment
Forecast Assumptions: Business Environment Semiconductor related business Steady growth despite slowdown in some regions. (valve & piping products, electronics materials) Results estimated at the same level as the previous year in Capital investment expectation for investment in environmental and sa
Slide 24: Major Issues
Major Issues Valve & Piping Improve productivity and secure human resources for stable supply and Systems growth. Divisions [Electronics materials] Strengthen relationships with existing customers and cultivate new Resin customers to prepare for new plant operation. Divisions [Foundry materials] Imp
Slide 25: Company-wide Profit/Loss Estimate
Company-wide Profit/Loss Estimate Amount: million yen Changes from the FY2022 results FY2023 forecast previous year Amount of Rate of 1H 2H Full year 1H 2H Full year change change Net sales 35,938 41,161 77,099 42,000 42,000 84,000 +6,901 +9.0% Operating 5,339 6,608 11,947 6,500 5,500 12,000 +53 +0.
Slide 26: Details of Full-year Net Sales Forecast and Operating Profit Forecast
Details of Full-year Net Sales Forecast and Full-year Operating Profit Forecast Net sales Net sales increase Operating profit Profit increase Amount: 100 million yen Amount: 100 million yen Profit decrease +13 +7 840 +49 119 +4 120 771 -3 -0 FY2021 Valve & Piping Resin Divisions Water Treatment & 22
Slide 27: Midterm Business Plan
Midterm Business Plan Revised - To be a Great Top Niche company that keeps making a real “difference” - May 2023 ASAHI YUKIZAI CORPORATION Copyright© ASAHI YUKIZAI CORPORATION Securities code 4216 26
Slide 28: Business Environment Forecast
Business Environment Forecast Current forecast Divisions and products Related markets (FY2023→FY2025) Capital investment (plants, equipment, Domestic (Valves, pipes & joints) semiconductors) Overseas * Valve & Piping Systems Divisions Semiconductor manufacturing (Valves for semiconductor manufacturi
Slide 29: Numerical Targets
Numerical Targets Target values for 2025 Previously Item Revised value announced value Net sales 73 billion yen 87 billion yen Operating profit 6 billion yen 12 billion yen Operating profit ratio 8% 14% EBITDA (9 billion yen) 16 billion yen ROE 8% 11% ROIC 6% 9% Vision for 2030 Previously Item Revis
Slide 30: Numerical Targets for 2025
Numerical Targets for 2025 Not including M&A Net sales Operating profit ROE 11% ROIC 9％ 87 billion yen 12 billion yen Water Treatment & Valve & Piping Resin Divisions Natural Resources Systems Divisions Exploitation Divisions Net sales 40 billion yen Net sales 23.5 billion yen Net sales 9.5 billion
Slide 31: Toward FY2025-2030 GNT
Toward FY2025-2030 GNT Not including M&A Net sales 1,250 250 100 million yen Operating profit 1,100 EBITDA : 100 million yen : Net sales 1,000 : Operating profit 200 : EBITDA GNT2025 870 771 750 150 647 160 566 141 140 561 536 500 86 120 100 119 61 64 55 CAGR 5% (Net sales :2025→2030) 250 42 44 66 5
Slide 32: Implications of Numerical Targets for FY2025
Implications of Numerical Targets for FY2025 <External environment> In FY2021 and FY2022, semiconductor-related markets in Japan and overseas grew more than expected, and the Valve & Piping Systems Divisions and the Advanced Materials Division (electronics materials) expand rapidly. Foreign currency
Slide 33: Investment and Financial Strategies / Shareholder Return Policy
Investment and Financial Strategies /Shareholder Return Policy Previously announced investment plan amounted to 22 billion yen M&A Valve & Revised investment plan amounts to 42 billion framework Piping Systems Ordinary Divisions (Ordinary) yen, an increase of 20 billion yen. 26% Resin (Strategic inv
Slide 34: Measures for Business Growth
Measures for Business Growth Progress and new measures Divisions Progressed measures New measures Overseas/semiconductor market Overseas/semiconductor market Started pipe production in China. Rebuilding of Nobeoka Plant Constructed a new plant in the U.S. Consideration of a new Dymatrix plant Valve
Slide 35: Measures for Business Growth: Valve & Piping Systems Divisions
Measures for Business Growth Valve & Piping Systems Divisions Overseas • Increase the manufacturing capacity of Nobeoka Plant in response to the market expansion of overseas market (core products) • Cultivation of the electronics industry (semiconductors, LCDs, etc.) in the U.S. and China, where con
Slide 36: Measures for Business Growth: Valve & Piping Systems Divisions
Measures for Business Growth Valve & Piping Systems Divisions Strengthen • Expanding the network of processors nationwide and providing highly reliable valued thermoplastic piping by training processors and developing technical assistance solutions and installation techniques. • Strengthen productio
Slide 37: Measures for Business Growth: Resin Divisions
Measures for Business Growth Resin Divisions Foundry • Improve profitability by helping customers improve their productivity, quality, materials and work environment with high-functionality products. • Pursue new business opportunities associated with the shift to EVs in automobiles. Development of
Slide 38: Measures for Business Growth: Resin Divisions
Measures for Business Growth Resin Divisions Electronics • Full production (scheduled in the summer of 2024) in the second electronic materials materials plant under construction (Aichi) and the expanded Nantong plant (China), and consideration of a third plant in Japan and a second plant in China.
Slide 39: Measures for Business Growth: Water Treatment & Natural Resources Exploitation
Measures for Business Growth Water Treatment & Natural Resources Exploitation Divisions Water • Improve profitability by providing optimal solutions by upgrading a wide variety treatment of wastewater treatment technologies and construction capabilities. • Challenge for new areas of technology (e.g.
Slide 40: Attachments
Attachments Copyright© ASAHI YUKIZAI CORPORATION Securities code 4216 39
Slide 41: ESG Activities
ESG Activities Develop ESG activities by positioning it as a top priority issue. In September 2021, the Sustainability Promotion Committee was established to address the issues surrounding sustainability. <<Purpose>> ➢ Increase corporate value over the medium to long term ➢ Minimize risk and expand
Slide 42: Relationship between business activities and SDGs
Relationship between business activities and SDGs Valve & We are working to develop valves that can contribute to solution of the Piping world's water resource problems, such as large valves that can be used in Materials large-scale desalination facilities and automatic hydrants that integrate ICT t
Slide 43: Relationship between business activities and SDGs: Valve & Piping Materials
Relationship between business activities and SDGs Valve & Piping Materials (valve) Contribute to stable operation of desalination facilities and wastewater treatment facilities with rustproof and durable thermoplastic valves Water resource problems are occurring around the world due to "population g
Slide 44: Relationship between business activities and SDGs: Resin (Foundry materials)
Relationship between business activities and SDGs Resin (Foundry materials) Increase the number of eco-friendly products to improve customers' work environment. Casting is one of the methods used to manufacture metal parts and products with complex shapes. Casting is a method of pouring molten metal
Slide 45: Relationship between business activities and SDGs: Resin (foaming)
Relationship between business activities and SDGs Resin (foaming) Promote energy saving with high-performance heat insulating materials There is a worldwide demand for energy saving in housing and other buildings as a measure against climate change. Asahi Yukizai has developed "Zero-Freon," a non-CF
Slide 46: Relationship between business activities and SDGs: Dymatrix and electronics materials
Relationship between business activities and SDGs Valve & Piping Materials (Dymatrix) Advanced Materials (electronics materials) Contribute to the development and production of leading- edge semiconductor devices with low-particle high- performance valves and low-metal semiconductor materials using
Slide 47: Relationship between business activities and SDGs: Geothermal power generation
Relationship between business activities and SDGs Water treatment & natural resources exploitation Promote construction work for geothermal power generation, a renewable energy source. The majority of Japan's energy sources are thermal power generation, and there is growing interest in renewable ene
Slide 48: Promotion of Digitization
Promotion of Digitization Promote the use of digital technology in manufacturing, sales, indirect and other business processes to improve efficiency and labor savings, increase customer convenience, and enhance corporate value. Image of promotion Laying the Digitization of information foundation for
Slide 49: Promotion of Digitization
Promotion of Digitization Operation survey Data Improvement Analysis Data collection aggregation action Digitization of site Construction of a simple Visualization of Solution of operations data warehouse manufacturing issues Improved production efficiency at Nobeoka Plant (valves, joints) by approx
Slide 50: Reference Data
RE Reference Data ASAHI YUKIZAI CORPORATION
Slide 51: Valve & Piping Systems Divisions Profit/Loss Trends by H/Q
Valve & Piping Systems Divisions Profit/Loss Trends by H/Q Net sales :100 million yen 1H/2H trends Operating Profit: 100 million yen 300 60 250 200 40 150 100 20 50 0 0 FY2018 1H FY2018 2H FY2019 1H FY2019 2H FY2020 1H FY2020 2H FY2021 1H FY2021 2H FY2022 1H FY2022 2H Net sales 164 171 159 162 146 1
Slide 52: Resin Divisions Profit/Loss Trends by H/Q
Resin Divisions Profit/Loss Trends by H/Q Net sales :100 million yen 120 1H/2H trends Operating Profit: 100 million yen 12 80 8 40 4 0 0 FY2018 1H FY2018 2H FY2019 1H FY2019 2H FY2020 1H FY2020 2H FY2021 1H FY2021 2H FY2022 1H FY2022 2H Net sales 82 80 80 92 69 90 88 98 97 109 Operating profit 3 3 4
Slide 53: Water Treatment & Natural Resources Exploitation Divisions Profit/Loss Trends by H/Q
Water Treatment & Natural Resources Exploitation Divisions Profit/Loss Trends by H/Q Net sales :100 million yen 1H/2H trends Operating Profit: 100 million yen 60 12 8 40 4 20 0 0 -4 FY2018 1H FY2018 2H FY2019 1H FY2019 2H FY2020 1H FY2020 2H FY2021 1H FY2021 2H FY2022 1H FY2022 2H Net sales 27 36 25
Slide 54: Cautionary statement
Cautionary statement Forecasts and estimates in this document are based on information available at the time the document was prepared. It does not assure or guarantee the realization of future planned figures or measures.