Presentation of Financial Results for 2Q of FY2008 (Fiscal Year Ending March 31, 2009)
Sekisui Chemical Co., Ltd. Naotake Okubo, President 28 October, 2008
FY2008 The First-half Results Summary of Profit and Loss
(Billions of yen)
FY2008
FY2007
FH Actual
FH Actual
Difference
Difference from the Plan
FY2008 FH Plan
472.9
467.8
5.1
468.0
4.9
Operating Income
18.3
17.9
0.4
19.0
-0.7
Recurring Income
19.2
18.5
0.6
19.0
0.2
9.5
17.9
-8.4
8.0
1.5
7
7
0
7
0
Net Sales
Net Income
Dividend （yen / share）
SEKISUI CHEMICAL GROUP
-
1-
FY2008 The First-half Results Net Sales & Operating Income by Company FY2007 FH Actual
FY2008 FH Actual Ope. Inc.
Net Sales
(Billions of yen)
Difference
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
FY2008 FH Previous Plan Net Sales
Ope. Inc.
Housing
211.9
8.6
210.8
6.2
1.1
2.4
208.0
8.0
UIEP
109.2
-0.3
109.0
1.4
0.2
-1.7
110.0
-0.5
HPP
141.2
10.7
137.3 11.6
3.9
-0.9
141.0 12.5
Others
23.0
-0.6
23.1 -1.2
-0.1
0.6
23.0
-1.0
Eliminated or Not Attributed
-12.3
-0.2
-12.3 -0.2
0.0
-0.0
-14.0
0.0
Total
472.9
17.3
467.8 17.9
5.1
0.4
468.0 19.0
*UIEP: Urban Infrastructure & Environmental Products Company *HPP: High Performance Plastics Company SEKISUI CHEMICAL GROUP
-
2-
-
3-
FY2008 Annual Plan Net Sales & Operating Income by Company FY2008 Revised Plan
FY2007 Actual
Ope. Inc.
Sales
(Billions of yen)
Difference Ope. Inc.
Sales
Sales
Ope. Inc.
FY2008 Previous Plan Sales
Ope. Inc.
Housing
436.0
20.0
420.0
14.1
16.0
5.9
428.0
20.0
UIEP
243.0
5.0
233.8
6.1
9.3
-1.1
245.0
7.5
HPP
294.0
24.5
280.5
24.5
13.5
0.0
295.0
28.0
Others
50.0
-2.0
48.5
-1.4
1.5
-0.6
49.0
-1.5
Eliminated or Not attributed
-27.0
-
-24.1
-0.3
-2.9
0.3
-28.0
-
Total
996.0
47.5
958.7
43.0
37.3
4.5
989.0
54.0
FY2008 Dividend （yen / share）
FY2007
Difference
FY2008 Previous Plan
FH
SH Plan
FH
SH
FH
SH
FH
SH
7
8
7
8
0
0
7
8
SEKISUI CHEMICAL GROUP
FY2008 The Summary of FH Recovery of the housing orders - Successful differentiation achieved by appealing the high performance features - Realization of good effect by the wide-area sales system introduced in FY2007 Hard struggling caused by the deteriorated business environment at domestic and abroad - The continued soaring in raw materials price compressed the profitability beyond our assumption - The hardship in securing quantity caused by the decreased demands for construction and IT etc. Positive implementation of strategic investments - Progressing the positive expansion of strategic business fields - Progressing the basis-development for exploiting the new frontiers of growth
Housing orders received in number of structures : FH2008 105% year-on-year Ratio of installation of photovoltaic generation systems FH2008: 50%
Delay in price-shifting in certain businesses and products against the soaring raw materials prices
Interlayer film business: Decision on the increase of production capacity in Japan and China Pipe restoration business: Acquired the company of pipe restoration business in Europe (July)
SEKISUI CHEMICAL GROUP
-
4-
-
5-
Priority Measures for the SH of FY2008 Reinforcing Profitability under the Severe External Environment
Complete shifting of the rises price of raw materials to the selling price Intensive reduction of costs by the Manufacturing Development Innovation - Realizing the cost reduction of 7 billion yen (prospect for FY2008) by means of multiple activities: “productivity improvement”, “quality improvement” and “Elimination of claims & construction mistakes”
Fixed cost reduction by promoting the structural reform & the streamlining of organization - Personnel reduction & shifting to growth fields and implementing the elimination and integration of sales bases (UIEP) - Starting the unified management of production & sales in Kyushu (Oct. Housing) - Retiring from the low-profitability business （Oct. HPP）
Making Strategic Moves and Further Growth for Priority Expansion of High Value Added Businesses
Increasing the market share by expanding sales of high-performance housing - Housing order-taking in number of structures for SH of FY2008 is to be 100% year-on-year - Putting on market the new houses pursuing highly-industrialized specifications in the name of “CRESCASA”
Reinforcing the world-wide basis of the pipe restoration business and materializing the business
- Structuring the world-wide value-chain by acquiring the European enterprise.; Realizing the synergy with SPR Americas and SPR Americas and Heitkamp.
Further expansion of interlayer film business, and entering into overseas markets with medical business - Further increase in sales of high-performance interlayer film with new products - Structuring the basis for overseas expansion of ADME & Tox. research business
Decision of increasing the production capacity of the IT related products (High valueadded tape & film) - Establishing the new production base (Taga Plant) for the clean sheet & film for optical and electronics fields SEKISUI CHEMICAL GROUP
High Performance Plastics Company-1 Prospect for FY2008 We will maintain and enhance the profitability, despite the influence of highly-priced raw materials and the deterioration of market in and out of Japan (Building related and IT-related business) AT: In the decrease in automotive production, the interlayer film business has been favorably expanded owing to the effect of the increased production capacity. However, the profitability came down under the influence of high-priced raw materials. IT: Even under the influence of the deteriorated liquid-crystal market situation we secured the sales turnover on the same level as previous year, owing to the increase in sales of the growth-expected products. MD: Profitability was improved by selection and concentration. Diagnostics regent remained on the same level, and Pharmaceuticals and ADME & Tox. research showed the growth. FY2008 Revised Annual Plan : Analysis of Operating Income (year-on- year)
15
(Billions of yen)
10.4
10
Sales Quantity & Composition Depression of construction related business Depression in IT related business
5
6.4
0
0
Increase in Selling Price
Total -5
2.1
-3.1
-2.2
Raw CR Fixed Cost Materials etc.
Foreign Exchange etc. Impact of soaring
Quick response to the high-priced raw materials
raw material prices
-10
FY2008 Previous Plan
-13.6
-15
ď ŽReinforcing profitability - Strict implementation of product price increase - Strengthening the purchasing power ď ŽStrict implementation of the structural reform of low-profit businesses - Transfer of Sign System business - Expanding the high-valued products -
SEKISUI CHEMICAL GROUP
6-
High Performance Plastics Company-2 Business Expansion Overseas Sales
Sales in the Strategic Business Fields (Billions of yen)
200
44% 150 109.0 [45.6] 100
24.4
[ 5.7]
27.0
[12.6]
Sales Ratio in Strategic Business Fields [ within HPP Company ]
48% 134.5 [65.1] 37.1 [17.8]
29.7 [14.3]
49%
144.0 MD
37.8
[27.3]
[33.0]
FY2006
FY2007
74.3
[35.5]
72.5
FY2008 A
FY2008
100
Note: Figures in [ ] are the result in FH
Revised Plan Previous Plan
Priority expansion of high-value-added products.
42%
94.9
Operating Income Ratio: 57%
43%
42%
127.6
124.3
28.0
27.4
26.2
22.2 40.7
Increasing production capacity 50 of interlayer film in Japan and China. (Operation staring in Oct. 2009) New product of interlayer film is to be put on market (Wedge-shaped film integrated in a car roof)
0
39%
Percentage of 117.0 Overseas Sales to Total Sales
Taga Plant (IT products main production base) newly established
33.6 [15.0] IT AT
67.8
Expansion of overseas business with ADME & Tox. Research (Licensing-out to XenoTech LLC. in U.S.)
31.7
50 57.6
150
49%
144.4 [68.5] 38.5 [17.9]
(Billions of yen)
America
45.0
42.0 Europe
32.0
40.8
50.2
54.6
54.8 Asia
0 FY2006
FY2007
FY2008
Revised Plan
FY2008
Previous Plan
Further exploitation of growth frontiers.
SEKISUI CHEMICAL GROUP
-
7-
Urban Infrastructure & Environmental Products Company-1 Prospect for FY200 8 FY2008 Despite severe environment for attaining the quantity due to the delayed housing starts recovery, the stagnant demand in the world recession, we are reinforcing the profit earning constitution by promoting efficiency.
We had hard fights of sales quantity in mainly core business by the delayed housing starts recovery Against the soaring raw material prices in the FH, the shifting to the selling price was delayed in the general purpose PVC products. As a result of acquiring the pipe restoration business company in Europe, each of the companies in the three priority business fields attained the sale turnover on the level of 10 billion yen in terms of annual sales. FY2008 Revised Annual Plan : Analysis of Operating Income (year-on- year)
5 (Japan) (Overseas)
2.5 0 Total
-2.5 -5
(Japan) (Overseas)
1.4 2.5
0.8
-0.9 -0.1
Increase in Selling Price
-1.1
CR etc.
Sales Quantity
Reinforcing the profitability of domestic business - Completion of price increase - Finishing-up of the structural reformation
0.2
-0.5
Reorganization of sales system and Personnel shift to the growth areas
Newly Consolidated
Fixed Cost
- Expansion of the growth products Accelerating the exploitation of the growth frontiers - Stronger-tackling the Stock Business - Effective utilization of the acquired basis (M&A)
Subsidiaries
Raw Materials
The delayed recovery of housing starts The stagnation of overseas demands
-4.5 FY2008 Previous Plan
-7.5
-
SEKISUI CHEMICAL GROUP
8-
Urban Infrastructure & Environmental Products Company-2 Promotion of Portfolio Reformation
Overseas Sales < > Effect by newly consolidated subsidiaries
Net Sales and Operating Income Plan by Portfolio (Billions of yen) FY2008
Portfolio FH Water Supply & Sales 66.1 Drainage, Building Core Ope. Material, 0.5 Home Techno Income Environmental Sales 5.2 Civil Engineering Growth Ope. (Aged pipe restoration) Income -1.0 Plant Materials （Sheet Business Sales 20.9 etc.） Expansion Infrastructure Ope. Composite 1.9 Materials Income （RCP・FFU etc.） Strength -ening Bases
Aqua System, Roofing Materials
FY2007
Revised Previous Annual Annual Plan Plan
141.9
FH
Annual
143.7 68.8 140.8
Difference from Previous Year FH
Revised Annual Plan
-2.7
1.1
2.9
5.1
2.5
4.8
-2.0
-1.9
22.6
17.3
3.2
10.8
2.0
11.8
0.9
0.8
-0.7
0.4
-0.3
0.6
45.7 18.6
43.2
2.4
-0.5
42.7
50
5.1
1.8
5.1
0.0
-0.3
Sales
9.0
20.4
20.4
8.8
19.9
0.2
0.5
Ope. Income
0.0
0.3
0.3
-0.1
0.1
0.1
0.2
SEKISUI CHEMICAL GROUP
(Pipe restoration business）
Allen + KDX
(Sheet business）
40
Percentage of Overseas Sales
30
Functional Materials Pipe Restration Water Environment
8%
20
18.2
6%
12.9 10
6.6
0
5.4
39.1 16.8 <1.1>
29.4 14.8 <3.6> 1.2
1.2 13.4 6.9
16% 15%
13%
10.1 0.9
4.8
Heitkamp + SSPRA +CPT
(Billions of yen)
37.5
17.5 <1.2>
10.8 <8.6>
5.5 <3.2>
11.5 <0.3>
14.5 <0.8>
FY2005 FY2006 FY2007 FY2008 FY2008
Revised Previous Plan Plan
Pursuing the M&A synergy -
9-
Housing Company-1 FH
Prospect for FY2008
Housing orders (structures): 105% year-on-year Living Environment business Sales: 107% year-on-year Housing orders (structures): 100% year-on-year Living Environment business Sales: 107% year-on-year
SH
Housing orders was favorable in FH, therefore annual operating income plan may be achievable
Further implementing the differentiation - FH Actual: Ratio of houses with photovoltaic generation systems 129% year-on-year by appealing high performance features - SH Plan: Warm Airy 104％ year-on-year Capturing deeply into the price - FH: Newly launched models “bj new” and “Grand To You WS” volume zone enjoying with good reputation - SH: The new model to be on market “CRESCASA” aiming at the order increment
Growth of Living Environment business - FH Actual: Sales of priority materials 114％ year-on-year and further improvement in profitability - SH Plan: Sales of priority materials 116％ year-on-year 10
FY2008 Revised Annual Plan : Analysis of Operating Income (year-on- year)
Housing
(Billions of yen)
5.9 Increase in Sales of Living Environ.
-0.1
CR etc.
Housing Sales Factor
6.6
2.8
2.1
Total -5
Ratio of Highigh-Performance Specifications Installation Tiled exterior wall Photovoltaic generation systems Warm Airy
60
5
0
70 (%)
Living Environ.
55 50
55
54
54
53
Fixed Cost
40
50 50
46
-1.6
Housing Materials
56
43
39
FY2008 Previous Plan
-3.9
30 FH2005
FH2006
FH2007
FH2008
-
SEKISUI CHEMICAL GROUP
10 -
Housing Company-2 Strategies for capturing orders for SH2008 SH2008 <Prospect on Market Environment> - The market may remain stagnant mainly in the rebuilding of houses. - The customers’ desire for houses may probably step back due to the lack in incentives and the unfavorable business outlook. (The anxiety over the future, caused by the increasing financial crises originated in USA, and the depression of real estate business)
Targeted Market
Specs. for Differentiation
Products Strategy Thoroughly implementing the differentiation with
“Grand To You” series
‘Parfait’ series
Parfait MasterDesign 2.0
“Domani” series
Zero Utility Cost
Demand Creation
“The Warm-Heim Campaign” will be expanded and implemented from Nov. 2008 to Feb. 2009
the high performance
Increasing our share by capturing the volume zone
“The products giving customers the feeling of cost-performance”
“Grand To You WS” (launched in May)
Indicating
“Grand To You” series FH 130% year-on-year
Performance
Highly Industrialized Product
of each house
The lineups completed
“CRESCASA” on sale throughout Japan in Oct.
New Construction
Complex Housing
Reinforcing the sales system with exclusive staff
“Desio” series “bj new” (launched in Apr.)
“bj” series FH 117% year-on-year
High performance apartments, LETOIT series SEKISUI CHEMICAL GROUP
CRESCASA
New model for apartment; “Letoit Duet” (Launched in Sep.)
Warm Airy
Rebuilding
“Make it visible” visible”
Tiled exterior wall -
11 -
The Financial Results for the First Half of FY 2008 Naofumi Negishi Director , CFO
FH2008 Financial Results Number of Consolidated Subsidiaries As of Sep. 30, 2008 As of March 31, 2008
Consolidated Companies Affiliates
130
130
8
8
Difference
+2 Newly consolidated subsidiaries -2 Separated, Integration
Influence of Difference in the Number of Consolidated Subsidiaries (Billions of yen)
Allen +1.1 [consolidated from 2Q of FY2007],
Net Sales
+2.2 Heitkamp +1.1
Operating Income
-0.2 Heitkamp -0.2
Note: Influence on net sales and operating income for FH2008 SEKISUI CHEMICAL GROUP
-
13 -
FH2008 Financial Results Summary of Profit and Loss
(Billions of yen)
FH2008 Net Sales Gross Income of Sales Gross Income Rate Selling, Gen. & Admin. Expense
Operating Income Investment Income or Loss by Equity Method Other Non-operating Income & Expenses
Recurring Income Extraordinary Income Extraordinary Expenses Income before Income Taxes Corporate Income Tax etc. Income for Minority Shareholders Net Income
FH2007
Difference
472.9 129.3 27.3% 111.0 18.3 0.5 0.4 19.2 3.8 15.4 5.5 0.4 9.5
467.8 134.3 28.7% 116.4 17.9 -0.5 1.2 18.5 23.6 11.0 31.2 13.1 0.1 17.9
7
7
Dividend（yen / share） * Excluding the influence from newly consolidated subsidiaries
5.1 *2.9 -5.0 -1.4% -5.4 0.4 *0.6 1.0 -0.8 0.6 -23.6 -7.2 -15.8 -7.6 0.2 -8.4 0
SEKISUI CHEMICAL GROUP
-
14 -
-
15 -
FH2008 Net Sales and Operating Income by Company Net Sales and Operating Income by Company (Billions of yen)
FH2008
FH2007
Net Sales Ope. Inc.
Difference
Net Sales Ope. Inc. Net Sales Ope. Inc.
Housing
211.9
8.6
210.8
6.2
1.1
2.4
UIEP
109.2
-0.3
109.0
1.4
0.2
-1.7
HPP
141.2
10.7
137.3
11.6
3.9
-0.9
Others
23.0
-0.6
23.1
-1.2
-0.1
0.6
Eliminated or Not Attributed
-12.3
-0.2
-12.3
-0.2
0.0
-0.0
Total
472.9
18.3
467.8
17.9
5.1
0.4
*UIEP : Urban Infrastructure & Environmental Products Company *HPP : High Performance Plastics Company SEKISUI CHEMICAL GROUP
FH2008 Total Company Net Sales & Operating Income FH2008
Total Company
(Billions of yen) Difference
FH2007
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
Net Sales
472.9
18.3
467.8
17.9
5.1 *2.9
Ope. Inc.
0.4 * 0.6
* Excluding the influence from Newly consolidated subsidiaries
Analysis of Operating Income (year-on- year) 4.2
5 0.4 0
Total
3.4
2.8
(Billions of yen)
Foreign Exchange
CR etc.
Sales Factor Raw Materials, Housing Materials
-5
-10
Fixed Cost
-0.9
-9.1 SEKISUI CHEMICAL GROUP
-
16 -
-
17 -
FH2008 Net Sales and Operating Income by Company (Billions of yen)
Housing
FH2008 Net Sales
FH2007
Ope. Inc.
Net Sales
Difference
Ope. Inc.
Net Sales
Ope. Inc.
House Sales
163.1
6.7
165.3
5.1
-2.2
1.6
Living Environment [Fami-S only]
48.8 [32.8 ]
1.9 [1.4]
45.5 [31.4]
1.1 [0.8]
3.3 [1.4]
0.8 [0.6]
Total
211.9
8.6
210.8
6.2
1.1
2.4
Analysis of Operating Income (year-on- year) 5.0 (Billions of yen)
Decrease in Sales -1.0 Composition etc. -1.2
2.5 2.4
0.0
-2.2
Increase in Sales of Living Environ. CR etc. 1.3 1.0
Total -2.5 -5.0
Housing Sales Factor
-1.2 Housing Materials
SEKISUI CHEMICAL GROUP
Housing 3.7 Living Environme nt -0.2 Fixed Cost
FH2008 Sales and Operating Income by Company (Billions of yen)
FH2008
UIEP
FH2007
Difference
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
Net Sales
109.2
-0.3
109.0
1.4
0.2 *-2.0
Ope. Inc.
-1.7 *-1.5
* Excluding the influence from Newly consolidated subsidiaries
Analysis of Operating Income (year-on- year)
2.5
Newly Consolidated Subsidiaries
(Billions of yen)
0.7 0.0 Selling Prices
Total
CR etc. Raw Materials
-1.1
-1.7
-2.5
0.7
0.7
Sales Quantity & Composition
-0.2
Fixed Cost
-2.5
-5.0 SEKISUI CHEMICAL GROUP
-
18 -
-
19 -
FH2008 Sales and Operating Income by Company (Billions of yen)
FH2008
HPP
FH2007
Difference
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
141.2
10.7
137.3
11.6
3.9
-0.9
Analysis of Operating Income (year-on- year) 5.0 (Billions of yen)
2.5 0.0
-5.0
2.9
Sales Quantity & Composition
1.0
-0.9 Total
-2.5
2.9
Increase in Selling Price
Raw Materials
CR etc.
-1.4 Fixed Cost
-0.9 Foreign Exchange
-5.4
-7.5 SEKISUI CHEMICAL GROUP
FH2008 Financial Results Non-operating Income & Expense FH2007
FH2008 Investment Income and Expenses by Equity Method Financial Income and Expenses
(Billions of yen)
0.5
1.6
Difference
-0.5
Remarks on main Difference
1.0 -0.4 Received -0.5 (Sekisui House -0.4 ) Paid 0.1
2.0
Miscellaneous Income and Expenses etc.
-1.2
-0.9
-0.3
Total
0.9
0.7
0.2
Misc. Income
-0.3
Misc. Exp.
-0.0
SEKISUI CHEMICAL GROUP
-
20 -
-
21 -
FH2008 Financial Results Extraordinary Income and Expenses
(Billions of yen)
FH2008
FH2007
Difference
Gain on Sale of Investments in Securities
-
23.1
-23.1
Proceeds from Business Transfer
-
0.5
-0.5
-
23.6
-23.6
Structural Improvement Expenses
2.8
6.9
-4.1
Loss on Valuation of Equity Securities for Nonconsolidated and Affiliates
0.5
-
0.5
-
3.1
-3.1
0.6
1.0
-0.5
Total Extraordinary Expenses
3.8
11.0
-7.2
Total Extraordinary Income and Expenses
-3.8
12.6
-16.4
Total Extraordinary Income
Loss on Revaluation of Inventories (Lower-of-Cost-or-Market Method) Loss on Sale or Disposal of Property, Plant and Equipment
SEKISUI CHEMICAL GROUP
FH2008 Financial Results Balance Sheets (Assets)
(Billions of yen) As of Mar. 31, 2008
As of Sep. 30, 2008
Difference
31.5
30.3
1.2
Account Receivable on Sales
156.9
168.4
-11.5
Inventories
124.6
116.2
8.4
30.8
27.5
3.3
249.8
243.5
6.3
26.5
27.4
-1.0
Investment Securities
139.8
133.2
6.6
Investments & Other Assets
35.8
36.3
-0.5
795.7
782.9
12.8
Cash & Deposits
Other Current Assets Tangible Fixed Assets Intangible Fixed Assets
Total Assets
Housing work in progress +4.6 Products inventories +1.3
Receipt of goods +11.7 Depreciation -13.5 Influence of Foreign Exchange -2.3 Lease accounting applied + 10.5
Nonconsolidated subsidiaryâ&#x20AC;&#x2122;s stocks +8.5 Other investments, sellout and redemption -2.0
SEKISUI CHEMICAL GROUP
-
22 -
-
23 -
FH2008 Financial Results Balance Sheets (Liabilities & Net Assets) As of Sep. 30, 2008
(Billions of yen)
As of Mar. 31, Difference 2008
No Interest Bearing Liabilities
319.3
321.8
-2.5
Interest Bearing Liabilities
105.7
92.1
13.6
Total Liabilities
425.0
413.9
11.0
Capital Stock etc.
209.3
209.4
-0.0
Retained Earnings
159.3
154.1
5.3
Treasury Stock
-10.8
-10.8
0.0
-0.9
-0.9
0.0
9.4
9.8
-0.4
Other Net Assets
4.4
7.5
-3.1
Total Net Assets
370.7
368.9
-1.8
Total Liabilities, Net Assets
795.7
782.9
12.8
Unrealized Holding Gain on Securities Minority Shareholdersâ&#x20AC;&#x2122; Interests
SEKISUI CHEMICAL GROUP
Loan payable -3.6 Commercial paper +6.0 Lease accounting applied +11.3
Current net income Dividend payment
+9.5 -4.2
Foreign currency translation adjustment - 3.2
FH2008 Financial Results Consolidated Cash Flows (Billions of yen)
FH2008
FH2007
Cash Flows from Operating Activities
27.4
13.0
Cash Flows from Investing Activities
-21.1
29.6
Cash Flows from Financing Activities
-4.9
-36.3
0.9
7.1
31.1
34.7
2.0
38.2
Net Increase (Decrease) in Cash & Cash Equivalents Cash & Cash Equivalents at End of Term Free Cash Flow
= Cash Flows from Operating Activities + Cash Flows from Investing Activities - Dividends Paid
SEKISUI CHEMICAL GROUP
-
24 -
-
25 -
FH2008 Financial Results Depreciation and Capital Expenditure (Billions of yen)
Depreciation FH2008
FH2007
Capital Expenditure Difference
FH2008
FH2007
Difference
Housing
4.4 [1.7]
2.7
1.7
3.1 [1.2]
3.2
-0.0
UIEP
3.5 [0.1]
3.3
0.2
3.1 [0.1]
4.2
-1.1
HPP
8.4 [0.9]
6.7
1.7
7.1 [0.5]
8.6
-1.5
Others
1.1 [0.2]
0.8
0.3
1.1 [0.1]
0.9
0.3
Eliminated or Not Attributed
0.3 [0.0]
0.3
-0.0
0.5 [0.0]
0.2
0.4
17.7 [3.0]
13.8
3.9 15.0 [1.8]
17.0
-2.0
Total
* ( ) : the amount influenced by the change of depreciation method
SEKISUI CHEMICAL GROUP
FY2008 Profit Plan (Billions of yen) FY2008 996.0 274.1 27.5% 226.5 47.5
Net Sales Gross Income of Sales Sales Income Rate Sales and Gen. & Admin. Expenses
Operating Income Income/Loss from investment in Equity Method companies Other Non-operating income/Expense
Recurring Income Extraordinary Income Extraordinary Loss Income before tax Corporate income tax etc. Income for minority shareholders
Net Income
Dividend （yen/share）
FY2007 958.7 272.8 28.5% 229.8 43.0
Difference 37.3 *26.6 1.3 -0.9% -3.2 4.5
1.4
0.6
0.9
-2.9 46.0 9.7 36.3 12.4 0.9 23.0
-5.0 38.5 23.6 17.2 45.0 19.9 0.7 24.3
2.1 7.5 -23.6 -7.5 -8.7 -7.5 0.2 -1.3
15
15
0
* Excluding the influence from newly consolidated subsidiaries SEKISUI CHEMICAL GROUP
-
26 -
-
27 -
FY2008 Plan Net Sales and Operating Income Net Sales and Operating Income by Company (Billions of yen)
FY2008 Plan
FY2007 Actual
Net Sales Ope. Inc. Net Sales Ope. Inc.
Difference Net Sales
Ope. Inc.
Housing
436.0
20.0
420.0
14.1
16.0
5.9
UIEP
243.0
5.0
233.8
6.1
9.3
-1.1
HPP
294.0
24.5
280.5
24.5
13.5
0.0
Others
50.0
-2.0
48.5
-1.4
1.5
-0.6
Eliminated or Not Attributed
-27.0
-
-24.1
-0.3
-2.9
0.3
Total
996.0
47.5
958.7
43.0
37.3
4.5
SEKISUI CHEMICAL GROUP
FY2008 Plan Total Company Sales and Operating Income (Billions of yen)
FY2008 Plan
Total Company
FY2007 Actual
Difference
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
Net Sales
996.0
47.5
958.7
43.0
37.3
Ope. Inc.
4.5
*26.6 * Excluding the influence from Newly consolidated subsidiaries
Forecast Analysis of Operating Income (year-on- year) 25.0
20.3
(Billions of yen)
12.5
6.3
4.5
1.9
CR etc.
0.0 Total
Sales Factor
Fixed Cost
-12.5
Raw Materials, Housing Materials
-25.0
-22.0
-2.0 Foreign Exchange
SEKISUI CHEMICAL GROUP
-
28 -
-
29 -
FY2008 Plan Sales and Operating Income by Company (Billions of yen)
Housing
FY2008 Plan
FY2007 Actual
Difference
Net Sales Ope. Inc. Net Sales Ope. Inc. Net Sales
Ope. Inc.
House Sales
336.0
16.5
326.7
11.1
9.3
5.4
Living Environment [Fami-S only]
100.0 [67.4]
3.5 [2.5]
93.3 [63.5]
3.0 [2.1]
6.7 [3.9]
0.5 [0.4]
Total
436.0
20.0
420.0
14.1
16.0
5.9
Forecast Analysis of Operating Income (year-on- year) 7.5 (Billions of yen) 5.9
Increase in Sales of Living Environ.
Increase in Sales +3.2
5.0
Composition etc. -3.3
-0.1
-2.5 -5.0
6.6 Living Environment
-1.6
0.0 Total
CR etc.
2.8
2.1
2.5
Housing
Housing Sales Factor
Housing Materials
Fixe d Cost
-3.9 SEKISUI CHEMICAL GROUP
FY2008 Plan Sales and Operating Income by Company (Billions of yen)
FY2008 Plan
UIEP
FY2007 Actual
Difference
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
243.0
5.0
233.8
6.1
9.3 *-0.7
-1.1
* Excluding the influence from Newly consolidated subsidiaries
Forecast Analysis of Operating Income (year-on- year)
5.0 (Billions of yen)
Sales Quantity & Composition
2.5
2.5
1.4
0.0 Total -1.1
-2.5
Selling Prices
-1.0
0.2
0.3 Fixed Cost
Raw Materials
-5.0
Newly Consolidated Subsidiaries
CR etc.
-4.5 SEKISUI CHEMICAL GROUP
-
30 -
-
31 -
FY2008 Plan Sales and Operating Income by Company (Billions of yen)
FY2008 Plan
HPP
FY2007 Actual
Difference
Net Sales
Ope. Inc.
Net Sales
Ope. Inc.
Net Sales
294.0
24.5
280.5
24.5
13.5
Ope. Inc.
0.0
*12.8 * Excluding the influence from Newly consolidated subsidiaries
Forecast Analysis of Operating Income (year-on- year) 15.0
(Billions of yen)
10.0 5.0
-10.0
& Composition
6.4
CR etc.
Total
Foreign Exchange
2.1
0.0
0.0 -5.0
10.4 Sales Quantity
Increase in Selling Price
Raw Materials
Fixe d Cost -3.1
-2.0
Newly Consolidated Subsidiaries
-0.2
-13.6
-15.0 SEKISUI CHEMICAL GROUP
FY2008 Plan
(Billions of yen)
FY2008
FY2007
Difference
Depreciation
37.0 [6.0]
30.0
7.0
Capital Expenditure
39.0 [4.0]
35.0
4.0
26.0
26.0
0.0
Research & Development Expenses
* [ ]: the amount influenced by Lease accounting applied
SEKISUI CHEMICAL GROUP
-
32 -
-
33 -
FY2008 Plan (Billions of yen) FY2008
FY2007
Revised Plan
Actual
Difference
FY2008 Previous Plan
996.0
958.7
37.3
989.0
Operating Income
47.5
43.0
4.5
54.0
Recurring Income
46.0
38.5
7.5
53.0
Net Income
23.0
24.3
-1.3
27.0
Sales
SEKISUI CHEMICAL GROUP
Disclaimer: This presentation may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
SEKISUI CHEMICAL GROUP
-
34 -
SEKISUI CHEMICAL GROUP
-
35 -
1. Main Data in Housing Business
Housing Company Resultｓ and Plan FY2008 SH Plan
FH
211.9 163.1 155.4 7.8 48.8 32.8 2.7 13.3 6,900 5,000 4,050 950 1,900
Sales ( Billions of yen ) Housing
Consolidated
Houses Land Living Environment Refurbishing Interior-Exterior Real Estate 1) Number of houses sold (units) Detached houses Heim Two-U Housing complex
Annual Plan
224.1 172.9 165.2 7.7 51.2 34.6 2.7 13.9 7,900 5,500 4,450 1,050 2,400
436.0 336.0 320.5 15.5 100.0 67.4 5.4 27.2 14,800 10,500 8,500 2,000 4,300
FH
FY2007 SH
Annual
FY2006 Annual
210.8 165.3 158.0 7.3 45.5 31.4 3.0 11.2 6,900 5,000 4,000 1,000 1,900
209.1 161.4 154.3 7.1 47.8 32.2 2.6 13.0 7,450 5,100 4,050 1,050 2,350
420.0 326.7 312.3 14.4 93.3 63.5 5.6 24.2 14,350 10,100 8,050 2,050 4,250
430.5 339.7 326.1 13.6 90.7 61.8 5.8 23.2 15,000 10,820 8,470 2,350 4,180
2) Main data
Others
Price<Sales subsidiaries: Detached Ho.>/unit>(Mil.yen) Price<Sales subsidiaries:Detached Ho.>/Tsubo(3.3m2) (thou. yen) Floor Space(m2) Exhibition places(Unit:structure) Sales staff (No. of person) Replacement ratio(%) Referral sales ratio(%)
29.5
-
-
29.3
29.2
29.3
29.5
739
-
-
735
731
734
716
131.7 41.6 2,463 36 36
-
-
131.6 455 2,536 36 35
131.8 36 34
131.7 438 2,370 36 34
135.9 465 2,419 37 34
FH
FY2006 SH
41.6 2,400 35 34
35 34
* Replacement ratio and Referral sales ratio are based on the receipt of orders.
(Millions of yen)
2. Housing Orders FH Backlog at beginning Growth rate New orders Growth rate Sales of houses Growth rate Balance at the end Growth rate
153,000 2% 197,277 6% 190,877 -1% 159,400 11%
FY2008 SH Plan Annual Plan
159,400 10% 201,521 2% 202,521 7% 158,400 4%
398,798 4% 393,398 3% -
FY2007 SH
FH
150,000 -1% 186,646 -6% 192,346 -1% 144,300 -8%
Annual
151,500 156,700 144,300 － 2% -11% -8% － 197,786 384,432 199,356 192,829 8% 0% 3% -2% 189,086 381,432 194,156 199,529 -4% 3% -5% -3% 156,700 150,000 153,000 － 2% -1% 2% －
3. Housing Starts FH Housing starts Privately-owned houses (included in above (=A) Sales by our company Detached house sales by our co.=B
FY2008 SH Plan
Annual Plan
FH
FY2007 SH
Annual
Annual
392,184 4% 393,684 -1% (in units) FY2006 Annual
580,780
549,220
1,130,000
533,288
502,310 1,035,598 1,285,246
179,680
160,320
340,000
162,831
148,972
313,803
356,557
6,900 5,000 2.8%
7,900 5,500 3.4%
14,800 10,500 3.1%
6,900 5,000 3.1%
7,450 5,100 3.4%
14,350 10,100 3.2%
15,000 10,820 3.0%
Our share in Detached houses=B/A *The housing starts in FH of FY2008 and the above “Detached house sales” are based on a prospect.
4. Ratio of High-Performance Specifications Installation FY2008 FH SH Plan Annual Plan Photovoltaic generation systems 50% 55% 53% Tiled exterior wall (Heim type JX) 50% 54% 52% Totally electrified model 91% 89% 90% Warm Airy 56% 69% 62%
FH
43% 55% 87% 46%
FY2007 SH
45% 50% 89% 64%
Annual
43% 52% 88% 55%
FY2006 Annual
51% 55% 87% 49%