Chori Co., Ltd. · TSE:8014
Chori — FY2022 2Q Earnings Presentation
38 slides from Chori's earnings presentation, Nov 2, 2022
Slide 1: Financial Results Briefing
Translation ― Original text in Japanese FY2022 2Q (April 1, 2022 to September 30, 2022) Financial Results Briefing November 2, 2022 Forecasts of operational performance, as well as future predictions described in this document, were prepared based on information available as of the day on which this
Slide 2: Contents
Contents Ⅰ FY2022 2Q Financial Results Summary P. 2 Ⅱ Progress on Medium-Term Management Plan P.15 Ⅲ Appendix P.33 CHORI CO., LTD. 1
Slide 3: FY2022 2Q Financial Results Summary
Ⅰ FY2022 2Q Financial Results Summary CHORI CO., LTD. 2
Slide 4: Key Points of the Summary
Ⅰ FY2022 2Q Financial Results Summary Key Points of the Summary POINT Final year of the Medium-Term Management Plan “Chori Innovation Plan 2022 (CIP2022)” ・Steady progress to our new stage, “consistently deliver ordinary profit at the ¥10.0 billion level.” ⚫ Increased sales and profit YoY significan
Slide 5: Business Results Breakdown (YoY Comparison)
Ⅰ FY2022 2Q Financial Results Summary Business Results Breakdown (YoY Comparison) POINT ⚫ Global economic activity advanced further toward stabilization, premised on an era of living alongside COVID-19. ⚫ In contrast, financial authorities in various countries restricted finances and raised interest
Slide 6: Reasons for Changes in Ordinary Profit
Ⅰ FY2022 2Q Financial Results Summary Reasons for Changes in Ordinary Profit Unit: billions of yen +4.2 +0.2 -2.4 Increased profit ratio Record high for 1H +0.2 Increase in selling, Non- general and operating administrative profit or loss expenses and others Effect of increased sales 7.4 5.3 FY2021
Slide 7: Fibers, Textiles and Garments Business
Ⅰ FY2022 2Q Financial Results Summary Fibers, Textiles and Garments Business POINT ⚫ Demand recovered in the domestic apparel market. Sales increased significantly by capturing customer needs in a timely manner under the goal of improving customer satisfaction. ⚫ Sales were strong in functional fabr
Slide 8: Chemicals Business
Ⅰ FY2022 2Q Financial Results Summary Chemicals Business POINT ⚫ Sales and profits increased due to strong overall performance. ⚫ Performance was steady in the fields of fine chemicals and inorganic fine materials. Performance was strong in pharmaceutical intermediates for generic drugs as well as i
Slide 9: Machinery Business
Ⅰ FY2022 2Q Financial Results Summary Machinery Business POINT ⚫ Vehicle sales for Europe and Central America were strong, leading to increased sales. ⚫ An additional provision of allowance for doubtful accounts was recorded for certain customers in the United Arab Emirates. FY2021 FY2022 Unit: bill
Slide 10: Net Sales by Operation
Ⅰ FY2022 2Q Financial Results Summary Net Sales by Operation POINT ⚫ Increased sales across all operations ⚫ Trade ratio: 69.2% (+1.3% YoY) Net sales 130.0 Net sales 168.5 Net sales +38.4 Overseas Overseas Overseas transactions 88.3 transactions 116.7 transactions +28.4 （Trade ratio） (67.9%) （Trade
Slide 11: Financial Position
Ⅰ FY2022 2Q Financial Results Summary Financial Position ■ Total assets ■ Net interest-bearing debt ■ Total equity Financial soundness Equity-to-asset ratio Unit: billions of yen 31-Mar-22 30-Sep-22 Difference Unit: billions of yen Total assets 134.1 150.3 +16.2 150.3 Net interest-bearing -6.9 -9.3
Slide 12: Financial status Consolidated B/S
Ⅰ FY2022 2Q Financial Results Summary Financial status Consolidated B/S POINT ⚫ Total assets increased due to an increase in trade receivables in line with higher net sales. ⚫ Net assets increased due to substantial growth in profits. Unit: billions of yen 31-Mar-22 30-Sep-22 Difference Unit: billio
Slide 13: Cash Flows
Ⅰ FY2022 2Q Financial Results Summary Cash Flows POINT ⚫ Cash flows from operating activities：Provided ¥2.7 billion due to net profit before income taxes and others despite an increase in working capital ⚫ Cash flows from investing activities：Provided ¥0.2 billion due to proceeds from sale of invest
Slide 14: FY2022 Business Results Forecast
Ⅰ FY2022 2Q Financial Results Summary FY2022 Business Results Forecast POINT ⚫ Making active and steady progress on “Chori Innovation Plan 2022 (CIP2022),” the Company’s medium-term management plan. FY2022 ordinary profit forecast of ¥12.0 billion (ROA (ordinary profit basis): 9.0%, ROE (net profit
Slide 15: FY2022 Dividend
Ⅰ FY2022 2Q Financial Results Summary FY2022 Dividend ⚫ The policy is to provide performance-based dividends in accordance with the levels of net profit attributable to owners of parent from the perspectives of flexibly returning profits to shareholders and ensuring stable management and finances wh
Slide 16: Progress on Medium-Term Management Plan
Progress on Ⅱ Medium-Term Management Plan Chori Innovation Plan 2022 ～ FY2020-FY2022 ～ Lay a solid foundation for a new stage (consistently deliver ordinary profit at the ¥10.0 billion level) CHORI CO., LTD. 15
Slide 17: Basic Policy of Chori Innovation Plan 2022 (CIP2022)
Ⅱ Progress on Medium-Term Management Plan Basic Policy of Chori Innovation Plan 2022 (CIP2022) Corporate group continues to evolve and change on a global scale, 【Basic Policy】underpinned by our exceptional capabilities and expertise. To a new normal AFTER COVID-19 Transformation to a business model
Slide 18: CIP2022 Three-Year Plan and Results
Ⅱ Progress on Medium-Term Management Plan CIP2022 Three-Year Plan and Results ＜CIP2022 Plan＞ FY2020 Plan FY2021 Plan FY2022 Plan Cumulative total Unit: billion of yen for 3 years Net sales 200.0 240.0 280.0 720.0 Ordinary profit 7.0 9.0 11.0 27.0 Net profit attributable to owners of 4.6 5.9 7.3 17.8
Slide 19: Returns to Shareholders
Ⅱ Progress on Medium-Term Management Plan Returns to Shareholders Basic Dividend Policy Chori seeks to make performance-based dividends based on the levels of net profit attributable to owners of the parent for the current term from the perspective of flexible profit distribution and ensuring stable
Slide 20: Progress on business strategy (Fibers, Textiles, and Garments Business)
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy（Fibers, Textiles, and Garments Business） Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure GLOBAL
Slide 21: Business strategy (Fibers, Textiles, and Garments Business) SWOT analysis
Ⅱ Progress on Medium-Term Management Plan Business strategy（Fibers, Textiles, and Garments Business） Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure SWOT analysis ・Two
Slide 22: BLUE CHAIN: ECO BLUE sustainability concept
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy（Fibers, Textiles, and Garments Business） ～BLUE CHAIN™～ Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance St
Slide 23: BLUE CHAIN: TEXBRID and SPX
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy（Fibers, Textiles, and Garments Business） ～BLUE CHAIN™～ Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance St
Slide 24: Progress on business strategy (Chemicals Business)
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy (Chemicals Business) Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure Accelerate the transformat
Slide 25: Business strategy (Chemicals Business) SWOT analysis
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy (Chemicals Business) Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure SWOT analysis ・Global netw
Slide 26: Chemicals Business: Sustainability-related business
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy (Chemicals Business) ～Sustainability-related business～ Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance St
Slide 27: Promotion of new protein sources
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy (Chemicals Business) ～Sustainability-related business～ Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance St
Slide 28: Progress on business strategy (Machinery Business)
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy (Machinery Business) Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure Develop the global market
Slide 29: Business strategy (Machinery Business) SWOT analysis
Ⅱ Progress on Medium-Term Management Plan Progress on business strategy (Machinery Business) Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure SWOT analysis ・Sophisticat
Slide 30: Corporate Governance / Compliance
Ⅱ Progress on Medium-Term Management Plan Corporate Governance / Compliance Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure ■ Corporate Governance Seek to increase cor
Slide 31: Corporate Governance: Responses to Revised Code
Ⅱ Progress on Medium-Term Management Plan Corporate Governance / Compliance Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure ■ Corporate Governance Status of main respo
Slide 32: Strengthening of Human Resource Development Structure
Ⅱ Progress on Medium-Term Management Plan Strengthening of Human Resource Development Structure Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure Human Resources “Utiliz
Slide 33: Company-wide Business Transformation Project
Ⅱ Progress on Medium-Term Management Plan Company-wide Business Transformation Project Creation of Next-Generation Corporate Strengthening of Human Reinforcement of Consolidated Resource Development Management Structure Business Models Governance Compliance Structure C hor i wi l l accel er ate r en
Slide 34: Appendix
Ⅲ Appendix CHORI CO., LTD. 33
Slide 35: Chori's Stock Price Trend
Ⅲ Appendix Chori’s Stock Price Trend Chori TOPIX（Tokyo Stock Price Index） (Unit: yen) Tokyo Stock Exchange 2,400 Stock price (as of October 31) ¥1,950 2,200 Share unit 100 2,000 Minimum purchase price 1,800 (as of October 31) ¥195,000 1,600 PER (as of October 31) 5.0 1,400 PBR (as of October 31) 0.7
Slide 36: Market Trends
Ⅲ Appendix Market Trends Note: As of March 31 (Unit: yen) ●USD (left scale) ● RMB (right scale) Foreign exchange rate Source: Rate as of the Company’s term-end 144.8 30 150 122.4 112.7 112.2 106.2 111.0 108.8 110.7 20 100 20.4 19.3 17.4 16.3 16.9 16.5 16.8 50 15.3 10 0 0 2016 2017 2018 2019 2020 202
Slide 37: Scope of Consolidation (FY2022 2Q)
Ⅲ Appendix Scope of Consolidation (FY2022 2Q) Main subsidiaries Segment FY2021 Name Remarks FTG Chemicals Machinery Subsidiary 33 Became a subsidiary through STX Co., Ltd. ● 9 Equity-method M&A in June 2021 affiliate Renamed in January 2022 42 Became a subsidiary through Total ASADA U CO., LTD. ● M&
Slide 38: Making your dreams come true
Making your dreams come true CHORI CO., LTD. 37