Shikoku Kasei Holdings Corporation · TSE:4099
Shikoku Kasei — Shikoku Chemicals — Q2 FY2021 Earnings Presentation
61 slides from Shikoku Kasei's earnings presentation, Nov 17, 2020
Slide 1: Financial Results Presentation for the 2nd Quarter of the FY2021
Financial Results Presentation for the 2nd Quarter of the FY2021 November 17, 2020 Code number：4099
Slide 2: Contents
Contents I. Corporate Profile (Business Structure) P3 II. Financial Results for the 2nd Quarter of the FY2021 P6 III. Forecast of Financial Results for the FY2021 P16 IV. Long-term Vision Challenge 1000 “STAGE 1” Progress Status P20 V. References P32 2
Slide 3: Corporate Profile (Business Structure)
Ⅰ．Corporate Profile (Business Structure)
Slide 4: Corporate Profile
Ⅰ －１．Corporate Profile （As of September 30, 2020） ◼ Company name SHIKOKU CHEMICALS CORPORATION ◼ Code number 4099 Industry：Chemicals ◼ Stock exchange Tokyo listing ◼ Incorporated October 10, 1947 ◼ Head Office Marugame, Kagawa Prefecture ◼ President and C.E.O. Naoto Tanaka ◼ Capital 6,867 million ye
Slide 5: Business Structure
Ⅰ －２．Business Structure ◼ Two main business pillars, which are chemical products and housing materials. There are five segments. Inorganic Chemicals Chem icals Organic operations Chemicals Fine SHIKOKU Chemicals CHEMICALS CORPORATION Interior, exterior finishes and Housing paving materials M aterial
Slide 6: Financial Results for the 2nd Quarter of the FY2021
Ⅱ．Financial Results for the 2nd Quarter of the FY2021
Slide 7: Overview
Ⅱ －１. Overview Due to the influence of the novel coronavirus, sales decreased 1 by 8.9% compared to the previous term, and net profit decreased by 24.1% compared to the previous term. Net sales for the chemicals operations segment were down 9.2% year-on-year, and segment profit was down 27.9% year-
Slide 8: Consolidated Financial Results
Ⅱ －２．Consolidated Financial Results ■ Highlights of Financial Results for the 2Q of FY2021 (Millions of yen) Consolidated cumulative 2Q Increase of FY2020 FY2021 Changes amount Amount Percentage Amount Percentage Net sales 25,693 100.0% 23,408 100.0% ▲ 2,285 ▲8.9% Operating Income 3,567 13.9% 2,609
Slide 9: Sales and Profit by Business Segments
Ⅱ －３. Sales and Profit by Business segments （Millions of yen） Consolidated cumulative 2Q Net Sales FY2020 percentage FY2021 percentage Changes Inorganic Chemicals 6,227 24.2% 4,669 19.9% ▲ 25.0% Chemicals Organic Chemicals 5,519 21.5% 5,744 24.5% 4.1% operations Fine Chemicals 3,993 15.5% 3,882 16.6
Slide 10: Overview of Sales by Segment (Chemical Products)
Ⅱ －４. Overview of Sales by Segment (Chemical Products) (Millions of yen) Inorganic chemicals Organic chemicals Fine chemicals ◆ Sales of Insoluble sulfur , remained sluggish, affected by the global production adjustments for automobiles amid the spread of COVID 19. However, sales are on a recovery t
Slide 11: Overview of Sales by Segment (Housing Material Products)
Ⅱ －５. Overview of Sales by Segment (Housing Material Products) (Millions of yen) Interior, Exterior Finishes Exterior Products and Paving Materials ◆Sales of Insoluble sulfur , remained sluggish, affected by the global production adjustments for automobiles amid the spread of COVID 19. However, sale
Slide 12: Analysis of Increase/Decrease in Chemical Segment Profit
Operating profit in previous term Decline in sales price Decrease in sales volume Increase in cost of sales Increase in cost of logistics Inorganic Chemicals Other Decline in sales price Increase in sales volume Decrease in cost of sales Increase in cost of logistics Organic Chemicals Other Increase
Slide 13: Analysis of Increase/Decrease in Housing Material Segment Profit
Operating profit in previous term increase in sales price Decrease in sales volume Increase in cost of sales and Paving Materials Interior, Exterior Finishes Increase in cost of logistics Other increase in sales price Ⅱ －７. Analysis of Increase/Decrease Decrease in sales volume in Housing Material S
Slide 14: Consolidated Balance Sheets
Ⅱ －８. Consolidated Balance Sheets *The value in () indicates the ratio compared to March 2020 (Millions of yen) Current assets Liabilities 57,429（▲5,674） 25,379（ ▲3,869） • Increase in notes and accounts payable(▲1,548) • Decrease in cash and savings （▲3,780） • Decrease in cash and Net assets deposit
Slide 15: Consolidated Statements of Cash Flows
Ⅱ －９. Consolidated Statements of Cash Flows ◼ Cash flows from ◼ Cash flows from ◼ Cash flows from operating activities investing activities financing activities (Millions of yen) Revenue decreased due to Although expenditure Expenditure increased the decrease in net profit for increased due to the d
Slide 16: Forecast of Financial Results for the FY2021
Ⅲ．Forecast of Financial Results for the FY2021
Slide 17: Full-year financial results forecast
※ The full-year financial results forecast Ⅲ －１. The full-year financial results forecast has been changed from the most recent plan (announced on July 28, 2020). （Billions of yen） FY 2021 Increase of FY 2020 (Actual values Changes amount for the first half) Net sales 1st half 25.6 23.4 ▲ 2.2 ▲ 8.9%
Slide 18: Business Forecast by Segment (Consolidated)
Ⅲ －2. Business Forecast by Segment ※ The full-year financial results forecast has been changed from the most recent (Consolidated) plan (announced on July 28, 2020). (Billions of yen) FY 2021 Increase of FY 2020 (Actual values amount Changes for the first half) Net sales Chemical 1st half 15.7 14.2
Slide 19: Capital investment, Depreciation, R&D expense
Ⅲ －3. Capital investment, Depreciation, R&D expense（Consolidated） (Millions of yen) Capital investment Depreciation R&D expenses (Millions of yen) FY2021 FY2016 FY2017 FY2018 FY2019 FY2020 Forecast Capital 2,952 3,815 1,628 2,073 1,961 6,221 investment Depreciation 1,747 1,645 2,318 2,281 2,189 1,95
Slide 20: Long-term Vision Challenge 1000 STAGE 1 Progress Status
Ⅳ．Long-term Vision Challenge 1000 “STAGE 1” Progress Status
Slide 21: Milestones of Challenge 1000
Ⅳ －１. Milestones of Challenge 1000 FY 2021 2023 2026 2030 Long-term Vision Challenge 1000 STAGE 1 STAGE 2 STAGE 3 To become a company making a proposal Desired one step ahead with Doku-sou- state in ryoku(creativity) 2030 To resolve the social challenges with creative ideas and to lead in global pro
Slide 22: Outline of Challenge 1000
Ⅳ －２. Outline of Challenge 1000 Financial Pillars for goals Strategy Net Sales Business reform 100 billions of yen policy Companywide reform policy Operating Income 15 billions of yen Proactive investment ROE Contribution to 10％ SDGs 22
Slide 23: Yonpou Yoshi (Contributions to Stakeholders)
Ⅳ －３. Yonpou Yoshi (Contributions to Stakeholders) Customer Value One-step-ahead Providing new values with unique, state-of-the- art products and services Employee Society Challenge and growth Better tomorrow Supporting with creation of Contributing to the spare capacity, company resolution of socia
Slide 24: Milestones of Challenge 1000
Ⅳ －４. Milestones of Challenge 1000 (Billions of yen) 1,200 1 120 0.95 Net Sales 0.9 （Consolidated） 100.0 1,000 0.85 1,000 100 New 5.0 0.8 business 95.0 0.75 sales 800 80.0 0.7 80 800 Existing 0.65 2.5 0.6 business 77.5 sales 60.0 0.55 52.8 528 51.6 516 49.0 490 600 60 600 0.5 Operating 0.45 profit r
Slide 25: Pillar for Strategy (Policy for business reform)
Ⅳ －５. Pillar for Strategy （Policy for business reform） ◆Internet sales of final consumer products sanitary Internet sales of “NEO-CHLOR Stick,” a sanitizer product. devices We will continue to focus on developing products that protect the sanitary environment. chemical ◆Improvement in supply system
Slide 26: Pillar for Strategy (Companywide reform policy)
Ⅳ －６. Pillar for Strategy （Companywide reform policy） ◆ Establishment of Shikoku Chemicals quality policy It was stipulated to “increase the levels of not only products Creation of but also all activities.” values ◆ Efforts to explore new businesses Ideas were solicited from employees of all group c
Slide 27: Pillar for Strategy (Proactive investment)
Ⅳ －７. Pillar for Strategy（Proactive investment） 有機化成品 New establishment of a fine chemical multiplant at Kitajima Office, Tokushima Plant ▶ Demands for semiconductors have been growing since the arrival of the IoT era. ▶ Needs for high-quality, high-function materials are growing among manufacturers
Slide 28: Pillar for Strategy (Contribution to SDGs) Chemical operations
Ⅳ －８. Pillar for Strategy (Contribution to SDGs) Chemical operations ◆NEO-CHLOR MARINE Chlorine treatment chemical to prevent damages to the environment in concurrence with the ejection of organisms contained in ballast water. Contributes to the protection of the ecosystems. ◆Glicoat-SMD Rust preven
Slide 29: Pillar for Strategy (Contribution to SDGs) Housing Materials
Ⅳ －９. Pillar for Strategy(Contribution to SDGs) Housing Materials operations ◆Diatomaceous earth walls series Wall material mainly consisting of diatomaceous earth. A people-friendly interior material that absorbs the harmful formaldehyde and breaks it down into non-hazardous substances. ◆Art Wall E
Slide 30: Shareholders return - Transitions in Dividend Payouts
Ⅳ －１０. Shareholders return–Transitions in Dividend Payouts– （ Millions of yen ） (%) 3,500 60.0 自己株式取得額 Share Repurchases 配当総額 Total Dividends 56.6 連結総還元性向（％） Total Payout Ratio(%) ROE（％） ROE(%) 3,000 50.0 2,500 1,786 40.0 1,605 2,000 30.0 1,500 23.8 19.5 18.6 20.0 1,000 10.1 10.3 7.9 8.0 10.0 500 1,
Slide 31: Thank you for listening.
@® SHIKOKU Thank you for listening.
Slide 32: References
@® SHIKOKU V. References
Slide 33: History
Ⅴ －１. History Established in Marugame, Kagaw a Prefecture w ith a capital of 2 million yen as a producer of carbon disulfide (=> Oct 1947 inorganic chemical products) No. 1 Tokushima Plant (now Tokushima Plant’s Yoshinari location) w as constructed and began operations in the Oct 1957 production of
Slide 34: History and Sales Trends
Ⅴ －２. History and Sales Trends Net Sales 1975 Moved to Tokyo Stock 1962 Exchange Section 1 Listed on Tokyo Stock Microetching solution 2008 Exchange Section 2 for PWBs 2004 Advanced Materials 1991 Glicoat-SMD 1947 1984 Insoluble Sulfur Establishment 1972 Exterior Products 1970 Wall materials 1968 Im
Slide 35: Chemicals operations
@® SHIKOKU Chemicals operations
Slide 36: Inorganic Chemicals
Chemicals operations ①Inorganic Chemicals
Slide 37: Inorganic Chemicals
Ⅴ －３. Inorganic Chemicals [Major products] □ Carbon Disulfide …Essential materials for chemical fiber rayon □ Insoluble Sulfur …Rubber vulcanization agent (Millions of yen) □ Sodium Sulfate …Warm bath effect accelerator for Inorganic bath additives Chemicals Synthetic detergent cleaning aid 4,669(19
Slide 38: Insoluble Sulfur - Product Introduction
Ⅴ －４. Insoluble Sulfur-Product Introduction- □ Application: Vulcanizing agent for rubber □ Main customers: Domestic and overseas tire manufacturers □ The raw material rubber is hard, and it acquires the characteristic to extend and contract by adding sulfur and heating (vulcanizing). □ W hen normal
Slide 39: Organic Chemicals
Chemical operations ②Organic Chemicals
Slide 40: Organic Chemicals
Ⅴ －５. Organic Chemicals (Millions of yen) [Major products] □ Chlorianted Isocyanurates（NEO-CHLOR） FY2021 … for swimming pool and septic tank Consolidated disinfectants cumulative 2Q □ HIPOLKA … Wastewater/sludge treatment Net sales agent 23,408 Organic Chemicals 5,744(24.5%) 40
Slide 41: Chlorinated Isocyanurates - Product Introduction
Ⅴ －６. Chlorinated Isocyanurates-Product Introduction- □ Applications: Sanitizing agent for swimming pools and septic tanks, chlorine-based sanitizing agent for spas and home baths □ Main customers: Swimming pool operators, schools, general consumers (U.S.) □ Main component: Chlorinated Isocyanurates
Slide 42: Fine Chemicals
Chemical operations ③Fine Chemicals
Slide 43: Fine Chemicals
Ⅴ －７. Fine Chemicals (Millions of yen) FY2021 Consolidated cumulative 2Q Net sales 23,408 [Major products] Fine Chemicals □ Glicoat-SMD…Water-soluble rust preventive agent for 3,882(16.6％) printed wiring boards (OSP) □ Advanced & Specialty Chemicals… Imidazoles (curing agent of epoxy resin) Resin mo
Slide 44: OSP: Organic Solderability Preservative - Product Introduction
Ⅴ －８. OSP: Organic Solderability Preservative-Product Introduction- □ Application: Water-soluble rust preventive agent for printed wiring boards OSP: Organic Solderability Preservative] □ Main customers: Printed wiring board manufacturers all over the world □ By forming an organic coating on the cop
Slide 45: Advanced & Specialty Chemicals - Imidazoles
Ⅴ －９. Advanced & Specialty Chemicals-Imidazoles □ Application: Curing agent and curing accelerator for epoxy resin*, raw material for drugs □ Main customers: Resin material manufacturers and drug manufacturers □ Imidazole is used in a wide range of applications, including curing agent for epoxy resi
Slide 46: Advanced & Specialty Chemicals - Imidazoles
Ⅴ －１０. Advanced & Specialty Chemicals-Imidazoles Engine CPU Car navigation system [Laminated plate, sealing agent, [Liquid crystal sealing material] solder resist ink] Engine hood [CFRP (reinforced carbon fiber)] Frame structure [Adhesive for structures] Tires [Tire grip improving agent] Electric mo
Slide 47: Focused Products (Printed Wiring Boards Agents)
Ⅴ －１１. Focused Products (Printed Wiring Boards Agents) ◼ GliCAP® Adhesion improving agent between copper circuit and resin on printed wiring boards. Conventionally, unevenness was formed on surface by roughening (etching) the copper so that the adhesion to resin was improved by “mechanical bondi
Slide 48: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１２. Focused Products (Advanced & Specialty Chemicals) ◼ Advanced materials Advanced materials at our company refer to the products (compounds) that can improve various functions by blending them as materials for electronic parts such as semiconductors that are used in electronic devices, etc.
Slide 49: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１３. Focused Products (Advanced & Specialty Chemicals) ◼ A new isocyanuric acid derivatives W e developed this material by utilizing isocyanuric acid synthesis technology we have accumulated. It has excellent heat resistance, light resistance, and transparency, and is used as a modifier for sea
Slide 50: Focused Products (Advanced & Specialty Chemicals)
Ⅴ－１４. Focused Products (Advanced & Specialty Chemicals) ◼ Glycoluril derivatives A multi-functional resin modifier with transparency and high heat resistance. It has 4 functional groups and is expected to form hardened materials with a high crosslinking density. ■ Glycoluril derivatives Thiol gr
Slide 51: Housing Materials operations
Housing Materials operations
Slide 52: Interior, Exterior Finishes and Paving Materials
Housing Materials operations ④Interior, Exterior Finishes and Paving Materials
Slide 53: Interior, Exterior Finishes and Paving Materials
Ⅴ－１５. Interior, Exterior Finishes and Paving Materials [Major products] (Millions of yen) □ Interior materials (silicate walls, natural 2020/3 material walls) 連結売上高 Plastered wall materials with 51,564百万円 moisture control function and harmful chemical substance and daily odor adsorption/decompositio
Slide 54: Interior, Exterior Finishes and Paving Materials
Ⅴ－１６. Interior, Exterior Finishes and Paving Materials Interior materials The business started with “JULUX,” the first industrial product for plastered wall material in Japan, which was developed for in-house chemical glue CMC application. W hile Juraku wall, which is a traditional Japanese wa
Slide 55: Interior, Exterior Finishes and Paving Materials
Ⅴ－１７. Interior, Exterior Finishes and Paving Materials Exterior and paving materials W e also expand our business to “exterior” to cover the outside of buildings and exterior parts, and “paving” to cover the surfaces of roads and approaches. Our exterior materials come in wide variations inclu
Slide 56: Exterior Products
Housing Materials operations ⑤Exterior Products
Slide 57: Exterior Products
Ⅴ－１８. Exterior Products (Millions of yen) [Major products] 2020/3 連結売上高 Home Exterior Products 51,564百万円 □ Gates, fences, car ports, and decks Exterior □ Accordion gates First product Products FY2021 (expansion type gates) in industry 8,001(34.2％) Consolidated □ Art Wall which was cumulative 2Q deve
Slide 58: Home Exterior Products
Ⅴ－１９. Home Exterior Products In 1971, when the motorization was rapidly progressing, we devised an “accordion gate,” which can be easily opened and closed with an expansion mechanism, and which can respond to the residential situation with limited space in Japan, and it became the standard for gat
Slide 59: Decorative Exterior Products
Ⅴ－２０. Decorative Exterior Products ■ Pathway shelter ■ Bicycle parking space ■ High strength car stops ■ Garbage accumulation storage ） 59
Slide 60: Efforts in Housing Materials Business
Ⅴ－２１. Efforts in Housing Materials Business We are adding to the lineup of high-strength exterior products that are resistant to wind and snow and promoting sales expansion, based on the fact that large-scale disasters such as typhoons have been recently happening one after another over the countr
Slide 61: Contact Information
Contact Information Corporate planning department, Shikoku Chemicals Corporation TEL：+81-(0)877-21-4119 FAX：+81-(0)877-22-4119 www.shikoku.co.jp [Note regarding this document] Forward-looking statements or projections mentioned in this document, including earnings are based on currently available in