1H FY2023 Financial Results
Spiral-up 2024

SEKISUI KASEI CO., LTD.
(TSE Prime Code: 4228)
November 9, 2023

1

Table of Contents
1

1H FY2023 Results2

Full-year FY2023 Forecasts

3

1H FY2023 Topics

2

Table of Contents
1

1H FY2023 Results2

Full-year FY2023 Forecasts

3

1H FY2023 Topics

3

1H FY2023 Financial Results
1H FY2022

Compared with
1H FY2022

1H FY2023(Units:billions of yen)

Difference from
Initial Plan

Results

Initial Plan

Revised
Forecasts

Results

Difference

(Ａ)

(B)

(C)

(D)

(D)-(A)Net sales

60.92

64.00

64.00

65.00

+4.08

107%

+1.00

102%

Operating income

-0.31

0.20

0.30

0.34

+0.65

ー

+0.14

169%

<Operating income ratio>-<0.3%><0.5%><0.5%>

Ordinary income

0.07

0.10

1.10

1.17

+1.10

ー

+1.07

ー

Net income attributable toowners of the parent

-0.35

-0.50

0.40

0.46

+0.81

ー

+0.96

ー

ChangeDifference

Change(D)-(B)• Higher sales and profits both YoY and compared to the plan
*1H forecasts were revised in a press release, “Notice Regarding Revision of the Forecasts for the Consolidated Financial Results for the Fiscal
Year Ended March 31, 2024”, on October 27, 2023.
・Operating income : +0.1 billion yen

Mobility field +0.6 billion yen, Human Life Segment -0.4 billion yen, Weak demand in China -0.1 billion yen

・Ordinary income : +1.0 billion yen
Foreign exchange gains, income from employment subsidies in the U.S. (related to COVID-19), etc.
・Net income: +0.9 billion yen

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1H FY2023 Ordinary Income Analysis (YoY)
Increase

Decrease

Foreignexchangedifference, etc.

0.44

Raw material& fuel prices

0.35

Proseat(Operating Income
portion)

Unit sales
prices

1.07

0.51

1.17

- 0.26
Energycosts

billions of yen

0.49

0.07

Fixed
costs,
etc.

- 0.54
Sales
volumeFY2022
1H Results

Profit difference +1.17

Difference in Ordinary income 1.1 billions of yen

FY2023
1H Results

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1H FY2023 Results: Industry Segment
Compared with
1H FY2022

1H FY2023

1H FY2022

Difference from
Initial Plan

(Unit: billions of yen)
Results

Initial Plan

Results

Difference

ChangeDifference

Change

(Ａ)

(B)

(C)

(C)-(A)Net sales

35.27

38.00

40.46

+5.18

115%

+2.46

106%

Operating income

-0.13

0.00

0.64

+0.78

ー

+0.64

ー

<Operating income ratio>ーー<1.6%>(C)-(B)• Net sales:

Recovery in Mobility field led to higher sales both YoY and compared to the plan・Mobility:

Higher sales YoY against the backdrop of a recovery in automobile production volume

・Electronics:

Higher sales YoY in regard to LCD-related demand, recovered to almost the same level as thestrong performance of the previous year

・Medical/Healthcare: Both ST-gel and ELASTIL recorded lower sales YoY• Operating income: Demand recovery in Mobility field and smaller losses at Proseat in Europe led tohigher profits both YoY and compared to the plan6

1H FY2023 Results: Human Life Segment
1H FY2023

1H FY2022

Compared with
1H FY2022

Difference from
Initial Plan

(Unit: billions of yen)
Results

Initial Plan

Results

Difference

（Ａ）

（B）

（C）

(C)-(A)Net sales

25.64

26.00

24.54

-1.11

96%

-1.46

94%

Operating income

0.70

1.30

0.94

+0.25

ー

-0.36

ー

<Operating income ratio>＜2.7%＞<5.0%><3.8%>• Net sales:
・Food:

ChangeDifference

Change(C)-(B)

Mainstay sheets and beads both experienced weak demand, with sales decreasing
both YoY and compared to the plan
SheetsAlthough demand related to home meals and home-meal replacements wasstrong, rising prices of materials also had an impact and led to weakness

Beads

Demand in fishery and life goods applications decreased, and there was no growth inshipments for agricultural use, resulting in weakness

・Housing/Energy:• Operating income:Week due to delays in progress of construction projects

Higher profit YoY due to passing on of increases in raw material prices, andcost reductions
Delays in passing on increases in higher energy prices caused profits to fall
below the plan

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1H FY2023 Financial Position(Unit: Billions of yen）

March 31,2023

September 30, 2023

Difference

Total assets

145.2

147.3

+2.1

Net assets

58.5

56.6

-1.9

Equity ratio

39.8%

37.9%

-1.9%

1,275.00

1230.34- 44.66(Ref.) Equity capital

57.7

55.8

-1.9

Cash and deposits

11.1

9.6

-1.5

Short-term loans

13.0

15.4

+2.4

Long-term loans

18.1

16.8

-1.3

Bond

7.0

7.0

0.0

Interest-bearing debt

38.1

39.2

+1.1

D/E ratio (times)

0.66

0.70

+0.04

Net assets per share (JPY)*Note: “Interest-bearing debt” above is the total of loans payable and bonds payable.

• Interest-bearing debt increased 1.5 billion yen due to the impact of forex rates• There were no major changes in the financial position

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Table of Contents
1

1H FY2023 Results2

Full-year FY2023 Forecasts

3

1H FY2023 Topics

9

Full-year FY2023 Forecasts
Compared withFY2022

FY2023

FY2022
Results

1H
Results

2H
Forecasts

Full-year
Forecasts

Difference

(Ａ)

(B)

(C)

(D)

(D)-(A)Net sales

124.68

65.00

65.00

130.00

+5.32

104%

Operating income

0.79

0.34

0.96

1.30

+0.51

164%

<Operating income ratio><0.6%><0.5%><1.5%><1.0%>

Ordinry income

0.70

1.17

0.53

1.70

+1.00

241%

Net income attributable toowners of the parent

0.45

0.46

0.09

0.55

+0.10

121%

(Unit: billions of yen)

• Higher sales and higher profits YoY• Operating income has been revised down, compared to the plan
(2.0 → 1.3 billion yen, decrease of 0.7 billion yen) *Announced October 27, 2023
・Expect to continue capturing new demand in Mobility field:+ 0.3 billion yen
・Impact of lower profit in the first half in Human Life Segment:- 0.4 billion yen
・Increase in personnel expenses at Proseat and impact of weak demand in China, etc.: - 0.6 billion yen

Change10

Spiral-up 2024

Full-year FY2023 Forecasts
FY2022

FY2023YoY

FY2024(Unit: billions of yen)

Full-year

Full-year

1H
Results

2H
Results

60.9

63.8

124.7

65.0

65.0

130.0

+5.3

104%

135.0

Industry

35.3

36.8

72.1

40.5

38.5

79.0

+6.9

110%

79.0

Human Life

25.6

27.0

52.6

24.5

26.5

51.0

-1.6

97%

56.0

Operating income

-0.3

1.1

0.8

0.3

1.0

1.3

+0.5

164%

4.0

<Operating income ratio>

-

1.7%

0.6%

0.5%

1.5%

1.0%

Industry

-0.1

0.0

-0.1

0.6

0.8

1.4

+1.5

-

3.8

Human Life

0.7

1.9

2.6

0.9

1.4

2.4

-0.2

91%

3.1

Head office costs

-0.9

-0.8

-1.7

-1.2

-1.2

-2.5

-0.8

-

-2.9

Net sales*Head Office costs include DX system costs

Full-year
Results

1H
Results

2H
Forecasts

Difference

ChangeForecasts

Forecasts

3.0%

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Spiral-up 2024

FY2023 Forecasts: Industry Segment
FY2023

FY2022(Unit: billions of yen)

YoY
Full-year

Reults

1H

2H

(Ａ)

Results

Forecasts

Difference

Forecasts

Change(Ｂ) ー (A)(Ｂ)

Net sales

72.1

40.5

38.5

79.0

＋6.9

110%

(Core business)

40.7

21.5

20.4

41.9

＋1.1

103%

(Proseat business)

31.3

19.0

18.2

37.1

＋5.8

118%

Operating income

-0.1

0.6

0.8

1.4

＋1.5

-

(Core business)

2.9

1.7

1.6

3.3

＋0.4

114%

(Proseat business)

-3.0

-1.0

-0.9

-1.9

＋1.1

-

Full-year forecasts for FY2023 is higher sales and profits YoY
Proseat businessCore business(Electronics)(Mobility)(Medical/Healthcare)(Mobility)(Mobility)(Medical / health care)

Particles for opticalapplications

Packaging materials

Automotive components

Parts packaging materials

High-functionality gel

Shoe materials

Automotive components

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Spiral-up 2024

FY2023 Forecasts: Industry Segment (Core business)
FY2023

FY2022(Unit: billions of yen)

Results

YoY
Full-year

Difference

Change(Ａ)

1H
Results

2H
Forecasts

Forecasts

Net sales

40.7

21.5

20.4

41.9

＋1.1

103%

Operating income

2.9

1.7

1.6

3.3

＋0.4

115%

(Operating income ratio)<7.0%><7.8%><7.9%><7.8%>--(Ｂ) － (A)(Ｂ)

Demand recovery in Electronics and Mobility to lead to higher sales and profits
Electronics

Mobility (Core business)

Medical/Healthcare

LCD display-related market to recover,leading to higher sales for particles for
optical applications, and LCD packaging

With the recovery in automobile production
we expect an increase in automotive
components, a decrease in packaging, buthigher sales overall

High-functionality gel and shoe materials
both expected to decline, but due toincreases in the urethane processing
business, etc. we expect flat sales overallbillions of yen
billions of yen

16.4

15.4

20.0

18.5

billions of yen

10.3

8.2

3.7

3.7
1.7

FY2022
Results

1H FY2023
Results

FY2023
Forecasts

FY2022
Results

1H FY2023
Results

FY2023
Forecasts

FY2022
Results

1H FY2023
Results

FY2023
Forecast

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Spiral-up 2024

FY2023 Forecasts: Industry Segment (Proseat business)
FY2023

FY2022(Unit: billions of yen)

YoY
Full-year

Results

Difference

Change(Ａ)

1H
Results

2H
Forecasts

Forecasts

Net sales

31.3

19.0

18.2

37.1

＋5.8

118%

Operating income

-3.0

-1.0

-0.9

-1.9

＋1.1

-

(Operating income ratio)

-

-

-

-

-

-

(B)

(Ｂ) － (A)Due to the recovery in automobile production and progress being made in price negotiations,
we expect higher sales and a smaller loss YoY
Automobile production volume
in Western and Central Europe(thousand units)

Mobility (Proseat business)
Higher sales due to the recovery in automobile production
in Western and Central Europe

17,77437.1

billions of yen

13,584

12,82813,526

14,876

14,86014,86831.3
19.0

Moderate recovery

2019

2020

2021

2022

2023

2024

2025

FY2022
Results

1h FY2023
Results

FY2023
Forecasts

The recovery in automobile production in Western and Central Europe is weak,
and we have not changed our previous view that a return to profit will take until FY2024

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Spiral-up 2024

FY2023 Progress in Improvements: Industry Segment (Proseat business)(Unit: billions of yen)

Full-year
Initial Plan

1H
Results

Full-year
Forecasts

3.1

2.0

3.6

-1.7

-1.3

-2.2

-

-0.2

-0.3

+1.4

+0.5

+1.1

Passing on of energy and component prices finalized+(Improvements)

Improvements in productivity, reductions in procurement
costs, cuts to labor and other expenses

Profitability improvement from higher sales

Profitability
improvement
plan
(YoY)

Increases in personnel expenses and deprediation, etc.
(Increased burden)
Expenses for restructuring head office/factory employees-

Impact of foreign exchange (sales/raw materials)

Total

・ Partial agreement reached in price negotiations for 2Q, and progress is being made in factory productivity.
・ Chronic labor shortages in Eastern Europe leading to increases in personnel expenses.
Need to be able to flexibly control labor expenses when production fluctuates.

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Spiral-up 2024

FY2023 Forecasts: Human Life Segment
FY2023

FY2022(Unit: billions of yen)

Results

YoＹ
Full-year

Difference

Change(Ａ)

1H
Results

2H
Forecasts

Forecasts

Net sales

52.6

24.6

26.4

51.0

-1.6

97%

Operating income

2.6

0.9

1.5

2.4

-2.0

93%

(Operating income ratio)<4.9%><3.8%><5.5%><4.7%>--(Ｂ) － (A)(Ｂ)

Due to weak demand and higher energy prices,
forecasts are for lower sales and lower profits YoY
Foodbillions of yen

45.7

44.4

● Sheets volume to be flat overall

Housing/Energy● Forecasts are for flat sales

・ Food trays to be unchanged from the previous year
・ Small decline expected for containers for instant noodles
and rice dishes
・ Folded lunchboxes to decline slightly

21.3

billions of yen● Beads volume to be down slightly overall・ Fishery to decrease YoY
・ Agricultural to increase slightly

6.7

・ Light electrical to increase
FY2022
Results

1H FY2023
Results

FY2023
Forecasts

3.2

6.6

・ Civil engineering to increase

・ Life goods to post a significant decrease

FY2022
Results

1H FY2023
Results

FY2023
Forecasts

16

FY2023: Capital Investment
FY2023

FY2018FY2019FY2020

FY2021

FY2022

Results

Results

Results

Results

Results(Initial plan)

1H
Results

Full-year
Forecasts

Capitalinvestments

7.4

5.3

5.4

3.8

3.7

(6.0)

2.5

5.7

Depreciation andamortization

4.5

6.1

6.2

6.2

5.7

(6.3)

2.8

5.9

(Unit: billions of y en)●Main capital investments(1H FY2023 Results)(2H FY2023 Plan)

・Information systems infrastructure development

・Information systems infrastructure development

・Installation of new facilities at global locations

・Facilities to improve production system

・R&D facilities

・Facilities to address environmental issues

・Renovation of Osaka head officeetc.

・R&D facilities

etc.

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FY2023: Shareholder Returns
FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023
Forecasts

Net income per share

75.33

69.09

51.29

24.86

-130.99

10.00

12.12

27

30

30

21

12

12

12

36%

43%

59%

85%

-

120%

621.2

-

-

141.5

-

-

Total payout ratio (consolidated)

54%

43%

59%

97%

-

120%

ROE

5.5%

4.8%

3.6%

1.6%

-

0.8%

-

-

-

-

-

-

(yen)

Dividend per share(yen)

Dividend payout ratio (consolidated)
Acquisition of treasury stock(millions of yen)

Retirement of treasury stock(ten thousands of shares)● Dividend Policy

Dividends are determined in accordance with the trend in consolidated
results, and after taking a comprehensive view of the balance between
dividend stability and internal reserves*Consolidated dividend payout ratio is to be around 30-40%● Dividend Forecast

Annual 12 yen/share (interim 3 yen, year-end 9 yen)

18

Table of Contents
1

1H FY2023 Results2

Full-year FY2023 Forecasts

3

1H FY2023 Topics

19

Topics by Fields: Electronics
SEKISUI KASEI developsed the world’s first TECHPOLYMER
hollow polyimide particles by applying a method that can be used for mass-production
Electron microscope photograph of the newly developed hollow polyimide particles● Feature

・ Low permittivity
・ Insulative
・ Lightweight・ Low density
・ Low refractive index

Exterior

Cross section

It is expected that the addition of these particles to the various materials used in the manufacture ofelectronic circuit boards for high-speed, high-capacity communications systems (5G and 6G) will
reduce the degree to which the signals flowing through the communication circuits are attenuated, andso their evaluation is being promoted as a material that can contribute to innovation in information andcommunication technology.

20

Topics by Fields: Mobility
PIOCELAN returnable packaging material
Building a closed recycling system with TOYOTA MOTOR
Virgin raw
materials
Collection/Conversion
to raw materials

PIOCELAN RNW
Recycled raw
material ratio
15% or more

Molding

Used returnable material

TOYOTA MOTOR

Material
Recycling
Returnable
material

Repeated
use

Logistics applications
DeliveryWe have built a closed recycling system that enables PIOCELAN returnable packaging materials used
repeatedly by TOYOTA MOTOR to be recovered and converted to raw materials to enable their reuse
as returnable materials by TOYOTA MOTOR.

21

Topics by Fields: Medical/Healthcare
ST-gel (high-performance gel material)
Expanding into the area of brainwave measurement

Electrodes for measuring brainwaves that use our ST-gel have been adopted for a BCI device*.
Progress in “brain tech” that blends neuroscience and IT is expected to lead to the development oftechnology to measure and visualize information related to the brain, and to the provision of newservices in a variety of fields, such as healthcare and mobility.
*A BCI device: A Brain-Computer Interface (BCI) device is a general term for a wearable device that attaches to the body, such as a headband or
earphones, to transmit electrical signals from brain waves, etc., to a computer.

22

Topics by Fields: Food
Reducing plastic usage by replacing non-foamed plastic containers

FP Corporation’s “SUSHI TRAY” series of large food containers

SEKISUI KASEI’s ESLEN Sheet PZ series

In partnership with FP Corporation, we have developed products to address the demand for reduced usageof plastics. By replacing conventional non-foamed plastic containers (HIPS) with containers made fromexpanded polystyrene, plastic usage can be cut by 50-60%.

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Topics by Fields: Housing/Energy
Lightweight recycled EPS embankment materials adopted for
Expo 2025 Osaka, Kansai, Japan project
Virgin raw
materials

Recycled
polystyrene foam beads(ESLEN Beads RNW)

Conversion to
raw materials
ESLEN Block RNWMaterial
Recycling

Used EPS

Molding

Foam molding
molding productsCollection

Used as remedial measurefor soft ground

Used fish boxes, etc.

With criteria for promoting resource recycling and the 3Rs having been applied to the construction of
Expo facilities, ESLEN Block RNW that make use of recycled polystyrene beads have been adopted.

24

Create Sustainable Star Product and expand their business
SEKISUI KASEI has set targets for the number of environmentally friendly products (Sustainable Star
Product) created as well as targets for their percentage of net sales, and is moving forward with thestrategic expansion of businesses that contribute to a sustainable society.

Tarets and actual results of the share of total sales

Targets and actual results of the number of registrations

As of end 1H
FY202318%

As of end 1H
FY2023
51%
Plan

Plan

Results
Results(Fiscal year)
Referencevalue

Results

Target(Fiscal year)
Referencevalue

Results

TargetSteady growth in response to societal demand for environmentally conscious products25

Increase recycled and biomass material usage ratio
SEKISUI KASEI is switching from virgin raw materials derived from fossil fuels to recycled materials
or biodegradable/biomass-derived materials.
(Target for FY2030: Recycled and biomass material usage ratio 50% or higher)

As of end 1H
FY2023(estimate)
Raw materials used as a percentage of total
production volume

17%
Total production volume

FY2022 Results

Plan

Reference value(Fiscal year)

Steady growth following the launch of recycled and biomass products, and increases in sales

26

Responding to Climate Change
SEKISUI KASEI has set targets for reductions in CO2 emissions and is taking on the challenge ofachieving carbon neutrality by 2050. We disclose information in line with the TCFD recommendations
and are working to further improve disclosure going forward.

CO2 emissions (Scope 1+2), targets and results
Reference value

FY2018 benchmark

Results

FY 2030
Plan

As of end 1H FY2023(estimate)

23.5% reduction

2050
Carbon neutrality
achieved(Fiscal year)*FY2018 benchmark level includes portion of Proseat from April 2018 to March 2019

Through improvements in energy savings/efficiency of production, and use of renewable energy,
have led to a steady reduction in CO2 emissions

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This slide presentation contains forward-looking statements.
These statements are based on current expectations and beliefs. However, Actual
results may differ from those expressed or implied due to various factors anduncertainties such as changes in the global economy and our business, competitionin the market, and regulatory issues.

For inquiries regarding the contents, please contact:
Corporate Communications DeptE-mail : ir_pr@sekisuikasei.com
Please also visit our website: http://www.sekisuikasei.com/