Year Ending March 31, 2024 (77th Term)

Second Quarter
Financial Results Briefing
November 9, 2023

S.T. Corporation
Yo Kozuki, President & CEO

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

1

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

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

2

Summary of the Business Performance in 2Q of FY 3/24

■Sales and profit decreased.
■Air Care business performed well, but the
Cloth Care business declined.

■The prices of raw materials hiked andexchange rates fluctuated more considerably
than expected.

■Marketing costs were curtailed, and theinvestment in businesses on which
we concentrate was delayed, so SGA decreased.
Copyright © S.T. Corporation. All rights reserved.

3Regarding the voluntary recall of “Senjo-Riki－Mokoawa”

The contents leaked from the container.

Toilet cleaner Senjo-Riki-Mokoawa
Toilet cleaner Senjo-Riki-Mokoawa (design-focused can)Copyright © S.T. Corporation. All rights reserved.

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Highlights of the Business Performance in 2Q of FY3/24<Consolidated>

Sales and profit decreased
Consolidated

Sales ratio

Vs.
Forecast¥22.9 bn-96.7％

97.7％

Operating profit¥1.3 bn

6.0％

83.1％

83.2％

Ordinary profit¥1.8 bn

7.9％

97.8％

98.0％

Profit attributable toowners of parent¥1.2 bn

5.3％

96.7％

99.1％

Comprehensive income
attributable to ownersof parent¥1.3 bn

Net sales

YOYDividend: ¥21 (¥20 in the previous fiscal year)
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5

Highlights of the Business Performance in 2Q of FY3/24<Consolidated>

2Q of FY 3/24
ActualSales ratio

YoYNet sales¥22.9 bn

-97.7%

Cost of Sales¥13.9 bn

60.9％

99.4％

Gross Profit¥8.9 bn

39.1％

95.3％

Selling, generaland administrative
expenses¥7.5 bn

33.1％

97.8％

Operating profit¥1.3 bn

6.0％

83.2％

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Highlights of the Business Performance in 2Q of FY 3/24
<Sales in each Business Category>Business Category

SalesComposition
ratio

YoY

Air Care(Air Fresheners andDeodorizers)¥10.7 bn

47％

100％

Cloth Care

(Mothproofing agents)¥4.0 bn

18％

91％

Thermal Care

(Disposable warmers)¥1.2 bn5％

110％

Hand Care(Household gloves）¥2.5 bn

11％

89％

Humidity Care (Dehumidifiers)¥1.9 bn

8％99％Home Care(Other)¥2.4 bn

11％

103％

Total

¥22.9 bn

100％

98％

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7

Variations in sales and operating income margin in
cumulative 2Q < Consolidated >5.7

Operating income margin declined due to the億円and増加
skyrocketing営業利益of raw material costs
exchange rates.
Before the application of standards for revenue recognition
28,000

12.0%

11.3%
11.0%

26,00011.0%

24,000

10.0%

9.8%

22,0009.0%

20,00018,000

7.8%

8.1%

6.7%

8.0%
7.0%

16,0006.0%

14,00012,0005.0%

10,000

4.0%

72nd term 2Q 73rd term 2Q 74th term 2Q 75th term 2Q 76th term 2Q 77th term 2Q
Sales

Oparating Income Margin
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Factors behind the Increase/Decrease in Operating
Income in 2Q of FY3/24 <Consolidated>

Increase/decreasein operating
営業利益 5.7億円増加 income
Operating income decreased ¥270 mil.
Factors behind
Increase

Increase due to raised sales prices

785

Decreased marketing expenses450Lower purchasing and manufacturing costs

161

Decrease in disposal loss and inventory valuation loss

126

Factors behind
Decrease

Rise in raw material prices, etc.

-728

Decline in sales volume-687

Augmentation of other SGA, etc.
Decrease caused by lowered sales prices

-283
-102

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Unit: million yen
9Initiatives for FY3/24

To concentrate on existing core businesses toenhance profitability
Measures for coping with the skyrocketing ofcosts for raw materials
To continue initiatives in growing fields
To establish the base for surviving the ESG era

10Copyright © S.T. Corporation. All rights reserved.

AIR Care
Products with high added value sold well.
The sales of the Premium Aroma series grew 21%.

Theme-based products and new products contributed.
Existing products, too, performed well.

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AIR Care
The contribution level of “For Sleep” rose.
● Estimated sales of Premium Aroma for indoor use

DS: Intage Inc. SRI+W
July 24 to October 15
Indicator for deodorizing fragrances (including those for cars): Estimated sales*Excluding those for clothes, viruses, and chlorine dioxide80

After release of For Sleep

up 12％ y/y

Before release of For Sleep

up 24％ y/y*Existing products only: up 14％7060504030
2010

前 本

前 本

年 年

年 年

年 年

年 年

年 年

年 年

年 年

年 年

This year

前 本

年 年

This year

This year

前 本

年 年

This year

Previous year

前 本

年 年

年 年

7/24

7/31

8/7

8/14

8/21

8/28

9/4

9/11

9/18

9/25

10/2

10/9

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Previous year

前 本

PA ForMist
PA forSleep
Sleep ミスト

Previous year

前 本This year

Previous year

前 本

PA For Sleep
Stationary
PA For 置き型
Sleep

Previous year

This year

Previous year

This year

前 本

お部屋PA置き型
Stationary PA for rooms

Previous year

前 本This year

Previous year

前 本This year

Previous year

This year

Previous year

This year

Previous year

This year

Previous year

前 本

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00

CLOTH Care
Change in timing of seasonal change of clothes
due to the change in the external environment
Monthly shipment amount of
mothproofing agents of S.T.
FY 3/23

2021

2022

2023

00000

Impact ofthe lingeringsummer000Jan.

Feb,Mar.

Apr.

MayJunJul.

Spring clothing change season
Market 91.1% of the amount in the previous year
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Aug.

Sep.

Oct.

Nov.

Dec.

Fall clothing change season
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Other
The performance of Kome-Touban andcleaners remained healthy.

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

97.5％ year on year
110.5％ year on year
105.9％ year on year

From the TV commercial of Kome-Touban
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Overseas
A flagship store opened in China,and will start contributing in the second half of FY 2024.
Variation in overseas sales (Consolidated)
30

20

5.7
10

Before application of thestandards for revenue
8recognition

Unit: 100 million yen

Overseas sales

136.0
15

Composition of overseas sales (by region)

Overseas sales ratio

15

5.8
1673％ year on year
Decline due to thediscontinuing of somedehumidifying agents

Decline due to therise in prices of AIR
care products

6.7

6.3

63％ year on year

Other10%
614

U.S. 41%¥470 mil.

Asia 39%

82.2% year on year

Europe10%04
FY3/20 FY3/21 FY3/22 FY3/23 FY3/24
2Q

2Q

2Q

2Q

2Q

108％ year on year
Healthy as a whole
despite the effects of therise in prices THERMAL
care products

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70％ year on year
Decline due to the delay inshipment of THERMAL careproducts and the rise in prices
of AIR care products
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Situation of costs
Selling prices were raised,but cost of sales ratio rose more than expected.

Cost of sales ratio

59.9％

60.9％

(2Q of FY 3/23)(2Q of FY 3/24)

The product mix worsened.
The costs for raw materials have soared.
The exchange rate has fluctuated.
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Measures for coping with the skyrocketing of costs
for raw materials

Measures for coping with the rise in costs
for raw materials and exchange rate fluctuations

Rise in prices of products
Efforts to reduce costs
Sales expansion of high-priced andhigh value-added products

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

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

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

18

Initiatives in the second half of FY 3/24

To concentrate on existing core businesses
and improve profitability

Measures for coping with the skyrocketingof costs for raw materials
To continue initiatives in growing fields
To establish the base for surviving the ESG era

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To concentrate on existing core businesses and improve
profitability (AIR care)

To become offensive with new high value-added products

To develop Premium Aroma For Sleep
To release new high value-added products
and theme-based products

20

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To concentrate on existing core businesses and improve
profitability （CLOTH Care）

To enhance measures for promoting thepurchase of new products, to catch up
We will meet the demand in the late fall of 2023.
Mass communication × Digital technology × In-store
promotion in the spring of 2024

Release of new products for light users

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To continue initiatives in growing fields
To develop pet animal business,
which belongs to a growing field
To popularize products and attract new customers
To enrich the lineup of dedicated deodorizing agents

Project for
supporting cats inshelters
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To cope with the rise in prices of raw materials andexchange rate fluctuations

More measures to offset the augmentation of costs

SKU reduction × Product mix improvement
Rise in prices of some products from Feb.
next year

Measures for reducing costs

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To establish the base for surviving the ESG era
To realize business administration
for improving corporate value to survive the ESG era

To fortify the structure for product development
To promote management focused on human capital
To strengthen the governance structure
To develop a structure for sustainability-orientedmanagement
Data-driven management
24Copyright © S.T. Corporation. All rights reserved.

Forecast for FY3/24 <Consolidated> ※Unchanged

Sales and profit will increase
Consolidated

YoYNet sales¥46.3 bn

101.7％

Operating profit¥2.4 bn

101.4％

Ordinary profit¥2.8 bn

102.5％

Profit attributable toowners of parent¥1.9 bn

103.9％

49.2％
Estimated dividend: ¥42*配当性向*Payout ratio: 49.2％
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25

Progress of formulation of the medium-term
management planTo put staff’s aspirations into the medium-term plan
Mid-career workers × Career
employees
Young employees × Senioremployees＝New ideas through synergy
Sectional meetings under specificthemes＝Acceleration of inter-section
cooperation
Wisdom in our company ×
Utilization of external resources＝Accumulation of know-how
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Progress of formulation of the medium-term
management planTo utilize the corporate culture unique to S.T.

To discuss the meanings ofexistence of our company,
involving all employees

Ideal state in themedium/long term
Action plans based on ourbusiness portfolio strategy

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Endeavor cheerfully andvigorously!

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がとう・免責文

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 not assure or guarantee that the numerical forecasts and policies herein will be realized.
Copyright © S.T. Corporation. All rights reserved.

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