Sekisui Chemical Co (SKSUF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Yes, this is Shimizu. Thank you for joining us today despite your busy schedule. I will present the FY25 first quarter results and the outlook for the first half. Page 1 shows the FX assumptions and actual results. The Q1 assumption was 152 yen against the dollar, but the actual was 145 yen, 7 yen appreciation versus the plan. For FX assumption for the second quarter, we are assuming 145 yen to the dollar. Page 2 shows the overview of the Q1 financial results. In the first quarter, net sales increased by 6.3 billion to 305.1 billion yen, with operating profit up by 1 billion to 21.2 billion yen. The blue stars indicate renewed record high figures. The ordinary profit was down due to the FX impact, and net income decreased due to smaller gains on sales of cross-share holdings. Page 3 shows the Q1 breakdown of net sales and operating profit by segment. In Q1, sales and OP grew substantially for the housing company, both achieving record highs at first quarter numbers. The performance of the housing business offset the decline in sales and profits of all other segments, enabling us to achieve a growth in sales and profits for the group as a whole. The 900 million drop in operating profit for the HPP company in Q1 was caused by the one-off expense related to a raw material transaction in Europe. But adjusting for this, profit in effect grew for HPP. We have not disclosed our quarterly profit forecast, but consolidated OP is trending slightly above the plan. Page 4 is our outlook for market conditions. Auto production globally in the first quarter was in line with our April forecast. We expect production in Q2 to be slightly below the outlook. Q1 smartphone shipments were slightly above the expectation, and for Q2, we expect it to be slightly below our forecast. The upper...