First Half Results for the Fiscal YearEnding March 31, 2023 (1H FY3/23)

November 11, 2022
JSP Corporation

1 Overall

1

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Contents

1. 1H FY3/23 Summary of Business Operations and FY3/23 Outlook(Overall)2. 1H FY3/23 Summary of Business Operations and FY3/23 Outlook(Business Segment)
3. 1H FY3/23 Supplementary Financial Information
4. New Products and Applications1

1 Overall

1

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

Net Sales / Sales Volume(Million yen)
131,000

MarginReturnOperating Profit / Operating Margin

Ordinary Profit to Total Assets

5,479
5,083

100

4,589

102,668
93

98(Million yen)

99
96 (US$/bl）

69

5,185

114,125

113,375

98

4.7%

5.1%

3,200

4.5%
4.0%

78
60

19
FY3/2020
FY3/21

4.6%
4.0%

4.3%
3.7%
2.6%

2.4%

45

18
FY3/191H FY3/23 Supplementary
Financial Information

Financial Highlights

Growth116,133

3

Business Segment

21
FY3/2222
FY3/23

Numbers in blue are sales as a pct. of FY3/19 sales

FY3/1918

FY3/2019

FY3/2120

FY3/22
21

FY3/2322

FY3/1918 FY3/20
19 FY3/21
20 FY3/22
21 FY3/23
22

2

1 Overall

1

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Summary of Business Operations (1H FY3/23 Results)
1H FY3/22
Results

Item(Million yen)

1H FY3/23
Forecast(Announced Apr. 28, 2022)

1H FY3/23
Results

YoY
Comparison

vs. Forecast

55,67363,50064,252+15.4%+1.2%

Operating profit

2,985

1,900

1,404

-53.0%-26.1%

Ordinary profit

3,081

2,000

1,860

-39.6%-7.0%

Profit attributable to owners ofparent

2,280

1,400

1,378

-39.5%-1.6%

Net sales

1H FY3/22
Dubai crude oil(US$/bl）

69.2

Forex (JPY/USD)

108.5

Forex (JPY/EUR)

130.5

 Global economy: Economic recovery slowed due to another wave of infections caused by a newcoronavirus variant, shortages of semiconductors and other components, soaring resource andenergy prices mainly as a result of the situation in Ukraine, and other reasons.
102.4  Japanese economy: Consumer spending and other key factors are picking up, but the outlook for the
economy remains unclear due to the impact of rapid price increases and delays in the supply chain.
129.5  Net sales: Up 15.4% mainly due to revisions of product prices.
 Operating profit: Down 53.0% mainly due to delays in product price revisions to reflect an increase in
136.6
the cost of raw materials.

1H FY3/23

3

1 Overall

1

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Components of Change in Operating Profit (1H Comparison)(Million yen)

1,404
-6,604

1H FY3/22

Exchange rates+5,196Higher fixed expenses

Unit sales prices+204

Unit variable expenses

Marginal profit fromHigher volume

2,985-1,581

Difference in profit is calculated using the exchange rate used in FY3/22.

-452

+76

1H FY3/23

4

1 Overall

1

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Summary of Business Operations (FY3/23 Outlook)

Item(Million yen)

FY3/23
Initial Forecast

FY3/22
Results(Announced Apr. 28, 2022)

FY3/23
Outlook

YoY
Comparison

vs. Initial
Forecast

114,125

128,000

131,000+14.8%+2.3%

Operating profit

4,589

4,300

3,200

-30.3%-25.6%

Ordinary profit

4,868

4,500

3,700

-24.0%-17.8%

Profit attributable to ownersof parent

2,893

3,100

2,700

-6.7%

-12.9%Net sales

FY3/22

FY3/23
Initial Forecast(Apr. 28, 2022)

1H FY3/23

2H FY3/23
Forecast

Dubai crude oil(US$/bl）

78.1

110

102.4

90

Forex (JPY/USD)

110.4

120

124.5

142

Forex (JPY/EUR)

130.4

130

135.2

145

 Global economy outlook for 2H FY3/23: There are concerns about an
FY3/23
economic downturn because of the high cost of resources and energy due to
Outlook
the Ukraine crisis, fluctuations of the financial and capital markets, and otherevents. Cost of raw materials is expected to remain high.
96  In Japan, the increasingly uncertain outlook because of the combination of adecline of the economy and rising prices is making consumers cautious about
133
spending and having other negative effects.
 Dividend: Annual dividend (forecast) ¥50 per share (Interim dividend ¥25,
140
Estimated year-end dividend ¥25)

5

1 Overall

1

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

3

Business Segment

1H FY3/23 Supplementary
Financial Information

Components of Change in Operating Profit (Full Year YoY Comparison)(Million yen)

Higher fixed expenses

Exchange rates

FY3/22+6,520

Unit variable expenses+580

Unit sales prices

Marginal profit fromhigher volume

4,589

-830

+291

3,200

-7,950-1,389Difference in profit is calculated using the exchange rate used in FY3/22.

FY3/23
Outlook6

1 Overall

1

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

3

Business Segment

1H FY3/23 Supplementary
Financial Information

Components of Change in Operating Profit (FY3/23 Initial Forecast vs. FY3/23
Outlook)(Million yen)Exchange rates

Lower fixed expenses

Unit variable
expensesUnit sales
pricesMarginal profit fromlower volume

4,300

2

3,200
-1,600FY3/23
Initial Forecast(Apr. 28, 2022)+3,290-3,360+450-1,100Difference in profit is calculated using the exchange rate used in FY3/22.

+120

FY3/23
Outlook7

1 Overall

2

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Contents

1. 1H FY3/23 Summary of Business Operations and FY3/23 Outlook(Overall)2. 1H FY3/23 Summary of Business Operations and FY3/23 Outlook(Business Segment)
3. 1H FY3/23 Supplementary Financial Information
4. New Products and Applications
8

1 Overall

2

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

3

Business Segment

1H FY3/23 Supplementary
Financial Information

Extrusion Business (1H FY3/23 Results)

Item(Million yen)

1H FY3/23
Results

1H FY3/22
Results

Net sales
Operating profit

YoY
Comparison

18,82920,857+10.8%

1,470

1,061

-27.7%

Increase in sales because of higher sales volume and price revisions
Lower earnings because of the impact of higher cost of raw materials
Food packaging materials andfood containers
STYRENEPAPERMIRABOARD

 Sales increased due to higher sales of food trays
and revisions of prices for JSP products.
 Sales increased due to higher sales of materials
used for advertising displays and product pricerevisions.

Industrial packaging materials
MIRAMATCAPLON
P-BOARD Sales of value-added products and generalpurpose products were about the same as one
year earlier.
 Sales were higher than the previous fiscal year
mainly due to product price revisions.

Home and building insulation materials
and civil engineering materials
MIRAFOAM

 Sales of materials in the building and homeconstruction sectors were unchanged from one
year earlier.
 Sales of materials for civil engineering increased.
 Sales increased mainly due to revisions of prices
for JSP products.

9

1 Overall

2

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

Item(Million yen)
Net sales
Operating profit

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Extrusion Business (FY3/23 Outlook)
FY3/22
Results

39,0762,782

FY3/23
1H Results

20,857
1,061

2H Forecast

21,143
1,039

Outlook

42,0002,100

YoY
Comparison+7.5%-24.5%

No change in sales volume is expected but higher sales due to product price revisions
Lower earnings due to the high cost of raw materials

Food packaging materials andfood containers

Industrial packaging materials

Home insulation materials andcivil engineering materials

MIRAMATCAPLON
P-BOARDSTYRENEPAPERMIRABOARD

 Sales of STYRENPAPER, foamed polystyrene
sheet used in food packaging, and othermaterials for household products are expected
to be unchanged from one year earlier.

 For industrial packaging products, flat panel display
packaging material sales are expected to decrease
from one year earlier because of the negative
effects of global inflation on consumer sentimentand the end of special demand due to teleworkand other factors.

MIRAFOAM

J-WALLBLOCK

 Sales of construction and civil engineering materials
are expected to increase from one year earlier.
 Sales of residential thermal insulation materials areslow.
 Anticipate strong sales in the civil engineering
sector10

1 Overall

2

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

3

Business Segment

1H FY3/23 Supplementary
Financial Information

Bead Business (1H FY3/23 Results)

Item(Million yen)

1H FY3/23
Results

1H FY3/22
Results

Net sales
Operating profit

YoY
Comparison

33,80640,220+19.0%

1,952

758-61.2%

Sales increased due to stronger sales in non-automotive applications and product price revisions
Earnings decreased due to the higher cost of raw materials
A cushioning material for automotive parts and home appliances,
and an impact protection material for athletic fields

ARPRO/P-BLOCKELEMPOR NEO
 Monetary sales and sales volumes increased mainly due to higher demand in nonautomotive sectors, despite the impact of another wave of the pandemic and the
Ukraine crisis.
 In Japan, the sales volume in the automobile sector increased and the sales
volume in non-automotive sectors was about the same as one year earlier. In
North America, the sales volume in the automobile sector decreased but increased
in non-automotive sectors. In China, the sales volume in the packaging materials
sector increased but decreased in the automobile sector mainly due to the impactof lockdowns.

Expandable polystyrene, hybrid molded products
STYRODIAHEATPOR
CLEARPOR
FOAMCORE The sales volume of STYRODIA decreased because of lower demand
for these products in the fisheries sector.
 Monetary sales increased mainly due to price revisions.
 Sales of FOAMCORE increased mainly due to a recovery in demand.

11

1 Overall

2

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Bead Business (FY3/23 Outlook)
FY3/22

Item(Million yen)

Results

FY3/23
1H Results

68,513
2,620

Net sales
Operating profit

40,220758

2H Forecast

42,7801,242

Outlook

YoY
Comparison

83,0002,000+21.1%-23.7%

Higher sales due to the recovery of sales volume and the revision of product prices
Lower earnings because of higher cost of raw materials

A cushioning material for automotive partsand home appliances, and sports shoes

ARPRO/P-BLOCKELEMPOR NEO

 Forecast higher sales because of strong sales primarily in market
sectors other than automobiles
 Earnings expected to decline because of a smaller spread caused by
the high cost of raw materials and utilities

Expandable polystyrene, hybrid molded products

STYRODIA

CLEARPOR

HEATPOR For beads, mainly STYRODIA foamed polypropylene bead products,
we expect that sales will be less than in our previous forecast
because of weak demand in the fisheries sector and in other markets.
 Forecast sales growth due to product price revisions and an
improvement in profit margins

12

1 Overall

2

1H FY3/23 Summary ofBusiness Operations and
FY3/23 Outlook

2

3

Business Segment

1H FY3/23 Supplementary
Financial Information

Other (1H FY3/23 Results and FY3/23 Outlook)

Item(Million yen)

1H FY3/23
Results

1H FY3/22
Results

Net sales

YoY
Comparison

3,037

3,173

+4.5%

62

84

+35.5%

Operating profit

Higher sales and earnings as demand improved in Japan and China
 Sales increased in Japan as sales in the automotive partstransportation and other market sectors recovered.
Item(Million yen)
Net sales
Operating profit

 In China, strong demand for packaging materials for many typesof components resulted in higher sales.

FY3/23

FY3/22
Results

6,536
212

1H Results

3,173
84

2H Forecast

2,827
66

Outlook

6,000
150

YoY
Comparison-8.2%-29.2%

13

1 Overall
FY3/23 Supplementary
3 1HFinancial
Information

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Contents

1. 1H FY3/23 Summary of Business Operations and FY3/23 Outlook(Overall)2. 1H FY3/23 Summary of Business Operations and FY3/23 Outlook(Business Segment)
3. 1H FY3/23 Supplementary Financial Information
4. New Products and Applications
14

1 Overall
FY3/23 Supplementary
3 1HFinancial
Information(Million yen)
1H FY3/23
1H FY3/22

2

Net sales

Operating profit

64,252
55,673

Profit attributable toowners of parent

Ordinary profit

1,404(15.4%)Net income per share(Yen)

1H FY3/22

1H FY3/23 Supplementary
Financial Information

Results of Operations

1,860(-53.0%)(15.8%)
Comprehensive income: 1H FY3/23: ¥7,897 million

1H FY3/23

3

Business Segment

1,378(-39.6%)(-39.5%)(132.5%)(142.8%)1H FY3/22: ¥4,608 million(151.0%)2,985

Operating profit
to net sales

46.26

2.2%

76.49

5.4%

3,081

2,280

Major yen exchange rates (January-June)
Currencies

US$

€

RMB

1H FY3/23

124.52135.1719.13

1H FY3/22

108.47130.48

16.75

YoY
Comparison

114.8%

103.6%

114.2%

15

1 Overall
FY3/23 Supplementary
3 1HFinancial
Information

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Non-operating Income/Expenses Extraordinary Income/Loss

Non-operating Income/Expenses
Account(Million yen)

Extraordinary Income/Loss

1H FY3/22

Account(Million yen)

1H FY3/23

1H FY3/22

1H FY3/23

17

8

-

110

Interest income

71

93

Foreign exchange gains

3

111

Gain on sales of non- current
assetsCollection of money transfer
scam at subsidiary

Other

150

370

Total extraordinary income

17

118

Total non-operating income

224

574

34

0

Interest expenses

54

54

34

149

Operation preparation
expenses

Loss on sales of non-current
assetsLoss on retirement of noncurrent assets

35

-

-

108

-

39

Loss on fire

129

-

Other

39

25

Total extraordinary losses

199

259

Total non-operating
expenses

128

118

Loss on disaster

Impairment loss16

1 Overall
FY3/23 Supplementary
3 1HFinancial
Information(Million yen)

2

3

1H FY3/23 Supplementary
Financial Information

Shareholders’ equity ratio

Net assets per share(Yen)

Business Segment

Financial Position

Total assets

Net assets

As of Sep. 30, 2022

145,496

97,38363.8%

3,112.03

As of Mar. 31, 2022

134,527

90,23163.9%

2,884.93

Shareholders’ equity: As of Sep. 30, 2022: ¥92,764 million
As of Mar. 31, 2022: ¥85,995 million

Major yen exchange rates
Currencies

US$

€

RMB

As of Jun. 30, 2022

136.69142.7520.38

As of Dec. 31, 2021

115.01130.5518.06

YoY Comparison

118.9%

109.3%

112.8%

17

1 Overall
FY3/23 Supplementary
3 1HFinancial
Information

Liabilities

Net assets

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Balance Sheet
Account(Million yen)

Assets2

As of Mar. 31, 2022

As of Sep. 30, 2022

Current assets

68,50374,883

6,379

Non-current assets

66,02470,613

4,589

Total assets

134,527

145,496

10,969Current liabilities

33,09835,8902,792

Non-current liabilities

11,197

12,222

1,024

Total liabilities

44,295

48,113

3,817

Shareholders’ equity

85,72686,360

633

268

6,404

6,135

Non-controlling interests

4,236

4,619

382

Total net assets

90,231

97,383

7,152

134,527

145,496

10,969

Accumulated other comprehensive
incomeTotal liabilities and net assets

Change18

1 Overall
FY3/23 Supplementary
3 1HFinancial
Information

3

1H FY3/23 Supplementary
Financial Information

As of Mar. 31, 2022

As of Sep. 30, 2022

Capital stock

10,128

10,128-

Capital surplus

13,405

13,405-Retained earnings

63,58064,214

633

Treasury shares(1,388)(1,388)-85,72686,360633

Valuation difference on available-for-salesecurities

346

367

21

Foreign currency translation adjustment

(810)

5,313

6,124

Remeasurements of defined benefit plans

732

722

(9)

Total

268

6,404

6,135

4,236

4,619

382

90,231

97,383

7,152

Total
Accumulated
othercomprehensive
incomeBusiness Segment

Net Assets
Account(Million yen)

Shareholders’equity2Non-controlling interests
Total net assets

Change19

1 Overall
FY3/23 Supplementary
3 1HFinancial
Information

2

3

Business Segment

1H FY3/23 Supplementary
Financial Information

Cash Flows, Capital Expenditures, Depreciation, R&D Expenses

Cash Flows(Million yen)

Cash flows from operating Cash flows from investing Cash flows from financing
Cash and cash equivalents
activities
activities
activities

1H FY3/23

1,776(3,183)

1,412

11,846

1H FY3/22

2,634(2,800)(1,570)11,032

Capital Expenditures, Depreciation, R&D Expenses(Million yen)

Capital expenditures

Depreciation

R&D expenses

1H FY3/23*4,714

3,492

1,109

1H FY3/22

2,654

3,273

1,073

Note: Capital expenditures are on a cash basis.

* To replace the factory of a subsidiary in South Korea that was destroyed by fire in March 2021,
land and a building have been purchased nearby.

20

1 Overall

42Business Segment

3

1H FY3/23 Supplementary
Financial Information

Contents

1. 1H FY3/23 Summary of Business Operations and FY3/23 Outlook(Overall)2. 1H FY3/23 Summary of Business Operations and FY3/23 Outlook(Business Segment)
3. 1H FY3/23 Supplementary Financial Information
4. New Products and Applications
21

1 Overall

42Business Segment

3

1H FY3/23 Supplementary
Financial Information

New Products and Applications

ARPRO/P-BLOCK LC
A new value-added grade of ARPRO/P-BLOCK that reduces GHG emissions
Already selected for use in automobile bumper cores
These low-carbon (LC) beads use exclusive JSP
technologies to use energy efficiently during molding
processes.
Using this new value-added grade of ARPRO/P-BLOCK
therefore enables companies to lower GHG emissions.
The patented technology behind this innovative material isbacked by many years of experience with developing newtechnologies. Already used by Japanese automakers as abumper core, this material is attracting much attention asa JSP product that contributes to sustainability.

22

1 Overall

42Business Segment

3

1H FY3/23 Supplementary
Financial Information

New Products and Applications

More Applications for ARPRO/P-BLOCK
Rear seats of the Nissan Ariya
ARPRO/P-BLOCK is used as a rear seat core material by
Toyota, Mazda and other automakers. Recently, Nissanstarted using this material in its rear seats for the firsttime in Japan.
Use of ARPRO/P-BLOCK is expected to continue to growas more automakers worldwide select this material.

Locations of ARPRO/P-BLOCK in an automobile23

1 Overall

42Business Segment

3

1H FY3/23 Supplementary
Financial Information

New Products and Applications

MIRABLOCK-Bio
This new material incorporates a biomass raw material
Customers are now switching to Bio from MIRABLOCK-E
Features By weight, plant-derived materials are at least 25% of
MIRABLOCK-Bio
 Complies with the inspection standard of the Japan BioPlastics
Association
 Decrease of 13%* in life cycle GHG emissions
 The same physical properties as those of MIRABLOCK-E*Compared with JSP MIRABLOCK-E use under the same conditions24

1 Overall

42Business Segment

3

1H FY3/23 Supplementary
Financial Information

New Products and Applications

P-Pearl F
A highly functional sheet for food containers forapplications extending from freezers to microwave ranges
Features An expanded sheet based on polypropylene that uses asmaller volume of resin Very easy to recycle
 Resistant to heat and oil; can be used in microwave ovens
 Incorporates biomass materials

Structure

Solid (not expanded)

Polypropylene (surfaces contacting food)Expanded polypropylene 3 times + Biomass materials

25

1 Overall

42Business Segment

3

1H FY3/23 Supplementary
Financial Information

New Products and Applications

ARGILIX
ARGILIX used by a Japanese cushion company
ARGILIX was selected as a material for a new cushion foroutdoor and other use that can be taken anywhere withease. Sales of the cushion started in July 2022.
After working with Tatsuno Cork Industry, a Japanese cushion
manufacturer, for about one year on the development of a new product,sales of an outdoor cushion made of ARGILIX started in July 2022.
Made of elastomer foamed beads, ARGILIX the cushion retains its form
and is highly durable. This product can be used many times without
losing its shape and has the correct level of softness for comfort for many
hours.

26

1 Overall

2

Business Segment

3

1H FY3/23 Supplementary
Financial Information

Cautionary statement with respect to forecasts
Forecasts are based on all the information currently available, and the actual results
may differ due to various factors.

JSP Corporation
Inquiries: Tel +81(3)-6212-6306
Public and Investor Relations Department27