Year Ending March 31, 2023 (76th Term)

Second Quarter
Financial Results Briefing
November 8, 2022

S.T. Corporation

Takako Suzuki, President & CEO

Today’s Briefing Agenda①Report on the Financial Results Summary②Full-year Earnings Forecast

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2

Summary of the Business Performance in 2Q of FY 3/23

■Sales and profit decreased.
■AIR Care business performed well, but themothproofing agents business declined.

■The prices of raw materials hiked and exchange

rates fluctuated more considerably than expected.

■The performance in the first half was affected by

the decrease in the selling prices of household gloves.

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Highlights of the Business Performance in 2Q of FY3/23<Consolidated>

Sales and profit decreased
Consolidated

Sales ratio

Vs.
Forecast¥23.4 bn

-

95.3％

99.9％

Operating Income¥1.6 bn

7.0％

94.3％

63.8％

Ordinary Income¥1.8 bn

7.9％

97.2％

68.0％

Profit attributable toowners of parent¥1.2 bn

5.2％

101.6％

66.0％

Comprehensive income
attributable to owners ofparent¥1.2 bn

Net salesYOYDividend: ¥20 (¥19 in the previous fiscal year)
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Highlights of the Business Performance in 2Q of FY3/23<Consolidated>

2Q of FY 3/23
ActualSales ratio

YoYSales¥23.4 bn

-99.9%

Cost of Sales¥14.0 bn

59.9％

103.9％

Gross Profit¥9.4 bn

40.1％

94.4％

SG&A Expenses¥7.8 bn

33.1％

105.2％

Operating Income¥1.6 bn

7.0％

63.8％

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Highlights of the Business Performance in 2Q of FY 3/23
<Sales in each Business Category>Business Category

Sales

Composition
ratio

YoY

AIR Care(Deodorizers/airfresheners)¥10.7 bn

46％

100％

CLOTH Care

(Mothproofingagents)¥4.4 bn

19％93％

THERMAL
Care(Disposablewarmers)¥1.1 bn

5％

124％

HAND Care(Householdgloves）¥2.9 bn

12％100％

HUMIDITY
Control(Dehumidifiers)¥1.9 bn

8％

101％

HOME Care(Other)¥2.4 bn

10％

103％¥23.4 bn

100％

100％

Total

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6Factors behind the Increase/Decrease in Operating
Income in 2Q of FY3/23 <Consolidated>

Increase/decreasein operating
営業利益 5.7億円増加 income
Operating income decreased ¥930 mil.
Factors behind
Increase

470

・Lower purchasing and manufacturing costs
・Increase due to larger sales quantities

171

・Increase due to raised sales prices

147

・Decrease in disposal loss and inventory valuation loss

27

Factors behind
Decrease

・Decrease caused by lowered-806
sales prices-573
・Rise in raw material prices, etc.
・Increased marketing expenses-227-146

・OtherCopyright © S.T. Corporation. All rights reserved.

Unit: million yen7

AIR CareProducts with high added value sold well.

The sales of products with highadded value were healthy.
New products contributed.

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8CLOTH Care
The spring demand came earlier
while the fall demand came later than usual.
Monthly shipment amount of
mothproofing agents of S.T.
FY 3/23

2020

2021

2022

Impact of thelingeringsummerJan.

Feb.
MarketMar.

Apr.

MayJun.

Jul.

Aug.

Spring clothing change season

95.9% of the amount in the previous year
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Sep.

Oct.

Nov.

Dec.

Fall clothing changeseason
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OtherDemand for hygiene andmeals at home remains strong.

Sales of Dashu-Tan
Sales of Kome-Touban
Sales of laundry tub cleaners

101.6％ year on year
110.0％ year on year
106.7％ year on year

From the TV commercial of Kome-Touban
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Overseas
Strategic withdrawal fromthe household glove business in Europe
Variation in overseas sales (Consolidated)
30 Unit: 100 million yen
Overseas sales

8Overseas sales ratio

6.7
6.0

20
16

5.7
13

10

15

6.7

6.3
15

17

Composition of overseas sales (by region)
108％ year on yearIn other regions,disposable warmers soldwell in Latin America.

100％ year on year

In Asia, AIR care products
sold well.

Other 12%
6U.S. 32%

Asia 44%¥578 mil.
63.3% year on year

Europe 12%04
FY3/19 FY3/20 FY3/21 FY3/22 FY3/23
2Q

2Q

2Q

2Q

2Q

106％ year on year
In the U.S., allproducts sold well.

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16％ year on year

In Europe, we withdrew
from the household glove
business.

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Situation of costs
Cost of sales ratio rose
more considerably than expected.

Cost of sales ratio％％(2Q of FY 3/22)(2Q of FY 3/23)

Discount of selling prices of Industrial glones,
skyrocketing of prices of raw materials, andexchange rate fluctuations
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12Today’s Briefing Agenda①Report on the Financial Results Summary②Full-year Earnings Forecast

Copyright © S.T. Corporation. All rights reserved.

13

Strategies for FY3/23
Drastic reform of the revenue structure of the existing businesses

Concentration of resources on growth areas

Clarification of a business development system

Formulation and disclosure of long-term ESG strategies

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Drastic Reform of the Revenue Structureof the Existing Businesses 1

Continuous global growth of No.1 AIR care products

New products with high added value
Development of “Shoshu-Riki Natulief”
Enhancement of sale of the three core
“Shoshu-Riki” products

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Drastic Reform of the Revenue Structureof the Existing Businesses 2

Fortification of the core business of CLOTH Care
We will meet the demand in the late fall of 2022.
In the spring of 2023, we will enhance digital sales
promotion and in-store sale.
We will make adjustments for a variety of purchasebehavior.

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Concentration of Resources on Growing Areas
Strengthening of the promising pet animal businessTo solve quality issues, and restart in thesecond half
To popularize our products in Japan andstrengthen our overseas sales system

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To cope with the rise in prices of raw materials andexchange rate fluctuations

Measures to offset the augmentation of costs

Improvement with an optimal product lineup
To start raising prices of some products in Jan.
Measures for reducing costs

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To achieve sustainable growth and improve corporate
value

Implementation of environmental measures

Use of recycled plastics for core products
Participation in the forest improvement
project in Hokkaido

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To achieve sustainable growth and improve corporate
value

Tightening of governance
To improve the risk management system
To enrich the systems for respective
committees
To strengthen the system for business
investment

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Forecast for FY3/23 <Consolidated>※Unchanged

The First Ye ar of Rebir th <Groundwork>
Consolidated

YoYNet sales¥47.5 bn

104.5％

Operating income¥2.5 bn

78.4％

Ordinary income¥2.8 bn

81.9％

Profit attributable toowners of parent¥1.9 bn

171.3％

Estimated dividend: ¥40 *Payout ratio: 46.8％
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To become
a company loved bystakeholders

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S.T. Corporation

https://www.st-c.co.jp/【Notes on the business forecasts】The items included in this material are based on a variety of premises, and do notassure or guarantee that the numerical forecasts and policies herein will be realized.
Copyright © S.T. Corporation. All rights reserved.

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