Sekisui Chemical Co., Ltd. · TSE:4204
Sekisui Chemical — Q2 2024 Earnings Presentation
47 slides from Sekisui Chemical's earnings presentation, Oct 31, 2024
Slide 1: Presentation of Financial Results Progress under Management Plan
SEKISUI CHEMICAL CO., LTD. For 2Q FY2024, ending March 31, 2025 Presentation of Financial Results Progress under Management Plan Keita Kato President and CEO October 31, 2024
Slide 2: Main Points of Today's Presentation
Main Points of Today’s Presentation ★：Record high Compared Difference 2H Compared Difference Compared Difference 1H FY2024 with from FY2024 with from with from FY2024 Revised 1H FY2023 Forecasts Revised 2H FY2023 Forecasts FY2023 Forecasts (JPY billion) Results Plan Results (July 2024) Plan Results
Slide 3: Results for 1H FY2024
Results for 1H FY2024 1H 1H FY2024 Forex rate FY2023 FY2024 Initial Plan In-house ¥156/US$ ¥150/US$ assumptions - ¥168/€ ¥161/€ Futoshi Kamiwaki Results ¥141/US$ ¥153/US$ (Avg. rate for - each term) ¥153/€ ¥166/€ Representative Director Senior Managing Executive Officer * Export data is subject to i
Slide 4: Overview of 1H FY2024 Results
Overview of 1H FY2024 Results ▌ Increase in net sales; substantial increase with operating profit exceeding forecasts (July) ▌ Ordinary profit in excess of forecasts (July) ▌ The bottom line in excess of forecasts (July) owing to such factors as the contribution from gain on sales of cross-sharehold
Slide 5: 1H FY2024 Results by Segment
1H FY2024 Results by Segment ▌ Increase in net sales across all segments except Housing. Achieved increases in operating profit across all segments in excess of forecasts (July) • HPP*: Substantial increases in net sales and operating profit owing to the recovery in demand for electronics as well as
Slide 6: 1Q & 2Q FY2024 Results by Segment
1Q & 2Q FY2024 Results by Segment ▌ Continued increase in 2Q operating profit Group-wide and across all segments 1Q FY2023 1Q FY2024 2Q FY2023 2Q FY2024 Net Operating Net Operating Net Operating Net Operating (JPY billion) sales profit sales profit sales profit sales profit HPP 96.1 9.9 110.6 14.7 1
Slide 7: 1H FY2024 Results Analysis
1H FY2024 Results Analysis ▌ Despite continued weak conditions in the housing market in Japan, substantial increase in sales volumes and product mix owing the recovery in global market conditions and high-performance product sales growth; increase in fixed costs, including investment in human capita
Slide 8: FY2024: Revised 2H and Full FY Plans
FY2024: Revised 2H and Full FY Plans 3Q FY2024 4Q FY2024 2H FY2024 FY2024 Forex rate 2H FY2023 Revised Plan Revised Plan Revised Plan Initial Plan In-house ¥149/US$ ¥140/US$ ¥145/US$ ¥150/US$ assumptions - ¥163/€ ¥163/€ ¥163/€ ¥161/€ Results ¥148/US$ (Avg. rate for - - - - each term) ¥160/€ 7
Slide 9: Outlook for Market Conditions
Outlook for Market Conditions *Figures in parentheses: 1H forecasts (July) Housing・Visitors (YoY) Number of Automobiles Manufactured (YoY) 2H plans (April) In the 1H, overall visitors exceeded the level recorded in the 2Q trends slightly below forecasts (July); despite falling below previous year du
Slide 10: 2H FY2024 Revised Plan by Segment
2H FY2024 Revised Plan by Segment ▌ Increases in net sales and operating profit Group-wide and across all segments; in addition to capturing the recovery in market conditions and demand as well as continued high-performance product sales growth, focus on securing margins; contributions from measures
Slide 11: 2H FY2024 Revised Plan Analysis
2H FY2024 Revised Plan Analysis ▌ Despite continued weak conditions in the housing market in Japan, domestic non- residential and global market conditions forecast to continue to recover to a certain degree; substantial increase in sales volumes and product mix; focus on securing margins; despite th
Slide 12: FY2024 Revised Plan by Segment
FY2024 Revised Plan by Segment ▌ Increases in Group-wide net sales and operating profit; the HPP Company to continue driving the Group’s performance with the other three segments trending toward a recovery and growth trajectory; upward revision of full FY forecasts for all segments ▌ Operating profi
Slide 13: FY2024 Revised Plan and Returns to Shareholders
FY2024 Revised Plan and Returns to Shareholders ▌ Increase in net sales; upward revision in operating profit; operating profit projected to hit a record high ▌ Ordinary profit and the bottom line in line with forecasts (July); the bottom line projected to hit a record high ▌ Dividend per share in li
Slide 14: Consolidated Performance
Consolidated Performance ▌ Accelerating the shift to growth; target operating profit of ¥105 billion based on the Medium-term Plan (JPY billion) EBITDA 119.3 126.7 133.4 137.7 137.3 133.2 116.6 137.6 142.1 147.1 160.0 175.0 1,410.0 1,308.7 1,242.5 1,256.5 1,157.9 1,112.7 1,096.3 1,107.4 1,142.7 1,12
Slide 15: High Performance Plastics Company
High Performance Plastics Company Ikusuke Shimizu Company President 14
Slide 16: HPP: FY2024 1H Results and 2H Revised Plan
HPP FY2024 1H Results and 2H Revised Plan Company ▌ 1H: Increases in net sales and operating profit in excess of forecasts (July) owing to the recovery in mainly semiconductor and other electronics-related as well as construction and consumer goods demand, the growth in sales of high-performance pro
Slide 17: HPP: 1H FY2024 Results Analysis
HPP 1H FY2024 Results Analysis Company ▌ Recovery in electronics-related as well as construction and consumer goods demand; in addition, firm trends also in the Mobility field; substantial increase in sales volumes and product mix; substantial increases in net sales and operating profit on the back
Slide 18: HPP: 2H FY2024 Revised Plan Analysis
HPP 2H FY2024 Revised Plan Analysis Company ▌ Trends in demand forecast to remain firm; projecting an increase in net sales mainly on the back of improvements in sales volumes and product mix; improvements in selling prices and cost reductions etc. to offset the impact of soaring raw material prices
Slide 19: HPP: Three Strategic Fields
HPP Three Strategic Fields Company Net Sales Trends and KPIs in the Three Strategic Fields Growth Growth 11 businesses clarified as strengthening the current PF driving potential in the Drive 2.0 Medium-term Management Plan. Electronics Mobility Molding products, Electronics (semiconductor and Mobil
Slide 20: Housing Company
Housing Company Masahide Yoshida Company President 19
Slide 21: Housing: FY2024 1H Results and 2H Revised Plan
Housing FY2024 1H Results and 2H Revised Plan Company ▌ 1H: Despite a downturn in net sales owing to the decrease in the number of houses sold, increase in operating profit as the effects of measures to strengthen profitability began to emerge as well as Stock Business (Renovation, Real Estate) expa
Slide 22: Housing: 1H FY2024 Results Analysis
Housing 1H FY2024 Results Analysis Company ▌ Reductions in fixed costs as well as improvements in the product mix and cost reduction, etc. offset the impact of the decrease in the number of houses sold in the Housing Business; secured an increase operating profit; increases in net sales and operatin
Slide 23: Housing: 2H FY2024 Revised Plan Analysis
Housing 2H FY2024 Revised Plan Analysis Company ▌ Continue to implement measures to strengthen profitability; plan to increase operating profit on the back of Stock Business (Renovation, Real Estate) and Town and Community Development Business expansion • Housing: Strengthen product strategies by ar
Slide 24: Housing: KPIs and Measures to Strengthen Profitability
Housing KPIs by Business and Measures to Strengthen Profitability Company Housing Business Renovation Business New Housing Orders (YoY) Renovation Orders • 1H: Despite differences between regions, new <Amount of Orders and the Number of Buildings by • Order growth on the back of efforts to strengthe
Slide 25: Urban Infrastructure & Environmental Products Company
Urban Infrastructure & Environmental Products Company Yoshiyuki Hirai Company President 24
Slide 26: UIEP: FY2024 1H Results and 2H Revised Plan
UIEP FY2024 1H Results and 2H Revised Plan Company ▌ 1H: Despite the downturn in housing market conditions, non-residential market conditions exhibiting a recovery trend; the increase in total costs offset by improvements in selling prices and successful efforts to control fixed costs; secured an in
Slide 27: UIEP: 1H FY2024 Results Analysis
UIEP 1H FY2024 Results Analysis Company ▌ The surge in total costs offset by improvements in selling prices and efforts to control fixed costs; secured an increase in operating profit, which exceeded forecasts (July); record-high operating profit in the 1H • Japan: Substantial progress in expanding
Slide 28: UIEP: 2H FY2024 Revised Plan Analysis
UIEP 2H FY2024 Revised Plan Analysis Company ▌ While non-residential market conditions are expected to exhibit a certain degree of ongoing recovery, concerns surrounding the shortage of labor at the frontline; slowdown in housing market conditions compared with plans (April); the increase in total c
Slide 29: UIEP: Three Strategic Fields
UIEP Three Strategic Fields Company Net sales in the Three Strategic Fields and KPI’s Building and Performance Construction and Fire resistant and non- Pipe Systems flammable materials materials (railroad industrial piping Infrastructures Composite Materials sleepers, etc.) • 1H: (Fire resistant and
Slide 30: Medical Business
Medical Business Eiichi Takahashi President of SEKISUI MEDICAL CO., LTD 29
Slide 31: Medical: FY2024 1H Results and 2H Revised Plan
Medical FY2024 1H Results and 2H Revised Plan Business ▌ 1H: Increases in net sales and operating income in line with successful efforts to capture diagnostics demand in Japan and overseas and growing sales of infectious disease testing kits in the U.S.; results in excess of forecasts (July) with op
Slide 32: Medical: 1H FY2024 Results Analysis
Medical 1H FY2024 Results Analysis Business ▌ Despite the impact of a downturn in diagnostics demand in China, operating profit exceeded forecasts (July) owing mainly to growing sales of infectious disease testing kits in the U.S. and successful efforts to control fixed costs; record high operating
Slide 33: Medical: 2H FY2024 Revised Plan Analysis
Medical 2H FY2024 Revised Plan Analysis Business ▌ Continue to capture diagnostics demand in Japan and overseas while focusing on expanding sales of infectious disease testing kits as well as blood coagulation devices and reagents in China; work to offset the upswing in development expenditures and
Slide 34: Medical: Overview by Business
Medical Overview by Business Business Net sales by Business and Overview of Progress Overseas testing Diagnostics (Japan) Diagnostics (overseas) system • 1H: Capture firm diagnostics demand in Japan • 1H: Despite the impact of a drop in diagnostics demand in China, increase in net sales on the back
Slide 35: Financial Results 1H FY2024
Financial Results 1H FY2024 34
Slide 36: Consolidated Companies
Consolidated Companies Number of Consolidated Companies Mar. 31, 2024 Sep. 30, 2024 Difference Consolidated Increased: 3 Subsidiaries subsidiaries 143 144 Decreased: 2 Subsidiaries*1 Affiliates Increased: 0 Subsidiaries 6 6 (Equity Method) Decreased: 0 Subsidiary*2 *1 Kofu Sekisui Sangyo Co., Ltd.,
Slide 37: Summary of Profit and Loss
Summary of Profit and Loss + 1H FY2023 1H FY2024 Difference (JPY billion) Net sales 611.3 629.1 +17.8 Gross profit 188.2 202.8 +14.7 Foreign exchange gains: +6.5 Gross profit margin 30.8% 32.2% +1.5% Selling, general and administrative expenses 147.0 154.1 +7.1 Foreign exchange losses: -4.1 Operatin
Slide 38: Balance Sheets (Assets)
Balance Sheets (Assets) Sep.30 Inventories (B/S item) 2024 Difference Ready-built housing (products) 32.2 -5.8 Prepared land for subdivision Mar. 31, 2024 Sep. 30, 2024 Difference housing 67.6 -0.1 (JPY billion) Land under preparation (work in process) 9.4 -1.0 Housing under construction Cash and de
Slide 39: Balance Sheets (Liabilities & Net Assets)
Balance Sheets (Liabilities & Net Assets) (JPY billion) Mar. 31, 2024 Sep. 30, 2024 Difference Non-interest-bearing liabilities 381.6 378.0 -3.6 Interest-bearing liabilities 120.7 110.1 -10.6 Net profit: +42.9 [Net interest-bearing liabilities] [-17.8] [-32.4] [-14.6] Dividends paid: -16.5 Total lia
Slide 40: Consolidated Cash Flows
Consolidated Cash Flows (JPY billion) 1H FY2023 1H FY2024 Cash flows from operating activities 49.3 58.3 Cash flows from investing activities 6.8 -13.9 Cash flows from financing activities -26.2 -37.8 Net increase in cash and cash equivalents 34.6 4.4 Cash and cash equivalents at end of period 119.8
Slide 41: Depreciation, Amortization, Capital Expenditures and EBITDA
Depreciation, Amortization, Capital Expenditures and EBITDA Goodwill and other Depreciation*1 Capital expenditures EBITDA*3 amortization*2 1H 1H Differ- 1H 1H Differ- 1H 1H Differ- 1H 1H Differ- FY2023 FY2024 ence FY2023 FY2024 ence FY2023 FY2024 ence FY2023 FY2024 ence (JPY billion) Housing 5.7 5.6
Slide 42: Depreciation, Amortization, Capital Expenditures, R&D Expenditure
Depreciation, Amortization, Capital Expenditures, Research and Development Expenditure FY2024 FY2023 Difference (JPY billion) Revised Plan Depreciation 50.0 52.3 +2.3 Goodwill and other amortization 2.7 2.7 0 Capital expenditures 60.6 70.0 +9.4 EBITDA 147.1 ★ 160.0 +12.9 Research and development exp
Slide 43: 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 44: Housing Company Results and Plan
Housing Company Results and Plan 1. Main data in Housing business 5ｚｚｚｚｚｚｚｚｚｚｚｚｚ FY2024 FY2023 1H 2H Plan Annual Plan 1H 2H Annual Net sales (JPY billion) 253.7 273.0 526.7 264.8 264.9 529.7 Housing 165.2 172.0 337.2 175.3 172.7 348.0 CONSOLIDATED Renovation 53.8 55.4 109.2 50.9 52.4 103.3 Other 34.
Slide 45: Various Performance Data
Various Performance Data Group-wide FY2024 FY2023 FY2022 ■Net Sales (JPY billion) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q HPP 110.6 110.5 - - 96.1 104.2 106.0 106.6 99.1 102.4 97.9 97.0 Housing 116.2 137.4 - - 121.0 143.8 126.7 138.1 115.7 144.5 129.0 148.2 UIEP 52.5 60.9 - - 51.3 58.4 59.8 65.3 50.1 60
Slide 46: Various Performance Data
Various Performance Data Industrial field FY2024 FY2023 FY2022 ■Net Sales (JPY billion) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Labor-saving product 5.9 6.0 - - 4.9 5.2 4.8 5.6 6.0 5.6 4.8 5.3 Environmentally friendly product 1.9 1.9 - - 1.7 2.1 2.0 2.2 1.9 1.9 2.1 2.1 Housing FY2024 FY2023 FY2022 ■Net
Slide 47: SEKISUI
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