FY2017 Financial Result
April 27, 2018
Sekisui Plastics Co., Ltd.
(First Section of Tokyo Stock Exchange, Code Number: 4228)

0FY2017 Financial Results(Unit: billions of yen)

FY2016
Results(A)

FY2017
Plan (*)(B)

FY2017
Results(C)

YoY
Change(C)-(A)%

Against Plan
Change(C)-(B)%Net sales

102.4

112.8

112.1

9.7

109%

-0.7

99%

(Overseas sales)

17.1

19.3

19.4

2.3

114%

0.1

101%

(Overseas sales ratio)

16.7%

17.1%

17.3%

Operating income

5.4

6.3

5.3

-0.1

98%

-1.084%(Operating income ratio)

5.3%

5.6%

4.7%

Recurring income

5.1

6.2

5.2

0.1

102%

-1.083%

Net income attributableto owners of the parent

3.4

4.1

3.4

0101%

-0.784%

5.7%

6.5%

5.5%

ROE

* Figures announced in November 2017

◆ On YoY, sales and recurring/Net incomes increased (record highs), but did not reachedagainst the plan.
- Industry Segment: While it grew in the fields of Automobile Components andHome Appliance/ IT field, sales expansion of strategic merchandise was delayed.
- Human Life Segment: While the increase in raw fuel prices continued, changes in the selling
unit prices have been delayed.
- Fixed costs for upfront investments could not be covered.
1

FY2017 Results: Industry Segment(Unit: billion JPY)

FY2016
Results(A)

FY2017
Plan (*)(B)

FY2017
Results(C)

YoY
Change(C)-(A)%

Against Plan
Change(C)-(B)%Net sales

40.2

46.6

46.0

5.8

114%

-0.6

99%

Operating income

2.6

3.7

3.2

0.6

122%

-0.5

86%

(Operating income ratio)

6.5%

7.9%

6.9%

2.0

3.2

2.8

0.8

141%

-0.4

88%

Recurring income* Figures announced in November 2017

◆ Demand for PIOCELAN has been in good shape for use in LCD panel transportation material

applications in the Home Appliance/IT field in Taiwan and China. Also, demand for
TECHPOLYMER recovered for use in LCD panels in the Light Diffusion field.
However; both demand slowed down partially.
◆ It grew in the Automotive field since uses of PIOCELAN as a components has been increased
and also it has also been used for large vehicles such as trucks.
◆ Expanding sales of strategic merchandises was delayed in the industrial material business.

22FY2017 Results: Human Life Segment(Unit: billion JPY)

FY2016
Results(A)FY2017
Plan (*)(B)

FY2017
Results(C)YoY
Change(C)-(A)%Against Plan
Change(C)-(B)%Net sales

62.2

66.2

66.1

3.9

106%

-0.1

100%

Operating income

4.7

5.1

4.4

-0.3

94%

-0.787%(Operating income ratio)

7.5%

7.6%

6.7%

3.8

4.2

3.5

-0.3

93%

-0.784%

Recurring income* Figures announced in November 2017

◆ Increase in raw fuel prices continued and , changes in the selling unit prices have been delayed.

◆ The sales volume was lower than the forecast due to poor demand in the year end, etc.
◆ Agriculture/fishery field remained sluggish under the influence of inclement weather.
◆ Food container field was strong since demand for microwave-safe containers increased.
◆ Construction materials/civil engineering field was also healthy, driven by private-sector

projects and acceleration of infrastructure maintenance.

33

FY2017: Dividend(Unit: Yen per share)

FY2016FY2017

Interim*Yea-end

Total*

InterimYear-end(prospect)

Total(prospect)(12.0)

12.0(24.0)

12.0

15.0

27.0Consolidated payout ratio: 32.9%

Consolidated payout ratio: 35.8%* Converted value after the stock consolidation in October 2016(two shares into one)The FY2017 year-end dividend will amount to 15.0 yen per share.
◆ Status of Acquisition of Treasury Stock
FY2016: Acquisition of 875,000 treasury stocks resulted the total return ratio of 54%.
FY2017: Acquisition of 568,000 treasury stocks resulted the total return ratio of 54%.

4

Mid-Term Management Plan
【Plan Period】

FY2016 - FY2018【Plan Name】

Implement “Business Portfolio Transformation” and“Earnings Structure Reform” based on the 100-Year Vision【Action Guideline】- Make Business Model Innovations
Toward the 60th Anniversary of Establishment With imagination, accelerate the innovations
Innovate and visualize thought, action and structure by all the members
5Mid-Term Management Plan

Key Measures
Make Innovations 60 Key Measures● Expansion of industrial field● Speed-up of the global sales expansion(1) Business portfolio transformation(expansion of business/customer bases)

Overseas sales (billion of yen) / Overseas sales ratio

Sales by segment (billions of yen)/ Industry segment ratio

8060

43%

50%2545%

2040%

1535%

1030%

510%

25%

05%

29%

402002009 101112

Human Life

1314

Industry

15161718※18%21.2 30%
25%20%

8.69%

2009 1015%

111213

国外売上高

Industry ratio

1415161718

国外比率

FY2014: Global Group company had 15-month account closing.

(2) Speed-up of the business modeltransformation● Increase awareness of corporate brands● Strengthen development of processing business● Strengthen of Proposal Sales

M&A of Yamakyu Co., Ltd.

"Flying Fish Box" developedwith Nippon Express Co., Ltd.
6Mid-Term Management Plan

Key Measures
Make Innovations 60 Key Measures(3) Strengthening of development capabilities by transforming
the development promotion system
Participated in international plastic exhibitions

Being used for In-Flight Meatsin the international flights● Transfer theme of New Business Application
Development Center.
● Utilize domestic and foreign exhibitions.
● Strengthen information gathering for strategic
merchandise development.
Used by a major drone company(4) Enhancement of competitiveness to build
a high-profitability structure● Wide-region logistics reform (20% reduction against FY2016)● Development of energy saving / productivity
SKG-KAIZEN (Improvement) presentation meeting(5) Personnel portfolio transformation/ human resource development● Human resource development by Sekisui Plastics-Juku● Sharing of ideal group talent

SK-Juku Completion ceremony

The “Zen-in Keiei ” card7

Mid-Term Management Plan

Quantitative Targets(Unit: billion of yen)

FY2016
Results(A)

YoY
FY2018Change Initial Plan
(C)-(B)(D)%

FY2018Plan(C)Net sales

102.4

112.1

120.0

7.9

107%

124.0

(Overseas sales)

17.1

19.4

21.2

1.8

109%

25.0

(Overseas sales ratio)

16.7%

17.3%

17.7%

Operating income

5.4

5.36.8(Operating income ratio)

5.3%

4.7%

5.7%

Recurring income

5.1

5.2

Net income attributableto owners of the parent

3.4
5.7%

ROE
Net Sales (billion of yen)140
1201008060
40200FY2017
Results(B)

101.6

102.4

112.1

20.2%
1.5129%

7.7
6.2%

6.6

1.5128%

7.6

3.4

4.4

1.0128%

5.0

5.5%

6.6%

7.8%

Operating Income (billion of yen)
120.0

FY15 FY2016
FY16 FY2017
FY17 FY2018
FY18FY2015

866.8
5.1

5.45.3

ROE (%)
86442200
FY15FY2015

FY16FY2016FY17FY2017

FY18FY2018

6.65.4

5.7

5.5

FY15

FY16FY17FY188

Mid-Term Management Plan

Industry: Quantitative targets / Key Measures(Unit: billions of yen)

FY2016
Results(A)

FY2017
Results(B)

FY2018
Plan
(C)

YoY
FY2018Change Initial Plan
(C)-(B)(D)%

Net sales

40.2

46.0

51.4

5.4

112%

55.0

Operating income

2.6

3.2

4.7

1.5148%(Operating income ratio)

6.5%

6.9%

9.1%

5.4
9.8%

2.0

2.8

4.0

1.2142%

4.8

Recurring income◆ Global business expansion

Home Appliance/IT field:Automotive field:
Medical/Health care fields:

China / Taiwan
Asia / Europe
Europe / Americas◆ Proactive input of new products & new goods(ST-LAYER, ELASTIL, TECHEATER)◆ Customer development with existing products/goods and increase in in-store share(PIOCELAN, TECHPOLYMER, ST-gel)

9Mid-Term Management Plan

Human Life: Quantitative targets / Key Measures(Unit: billions of yen)

FY2016
Results(A)

FY2017
Results(B)

FY2018Plan(C)YoY
FY2018Change Initial Plan
(C)-(B)(D)%Net sales

62.2

66.1

68.6

2.5

104%

69.0

Operating income

4.7

4.4

4.80.4109%(Operating income ratio)

7.5%

6.7%

7.0%

5.2
7.5%

3.8

3.5

3.9

0.4111%

4.2

Recurring income◆ Increase in in-store shares of existing customers for beads/sheets◆ Expansion of functional food containers (microwavable/freezable containers)◆ Agriculture/fishery: import/export business (enhance to develop freshness

preservation materials)◆ Fabrication business: Development by regional representative companies andGroup in Asia
◆ Cost reductions through energy-saving/productivity enhancing activities andwide-region logistics reform.
10Status of Capital Investment(Unit: billion JPY)

(Reference)
3 Years

FY2016FY2017FY2018Results

Results

Plan

Capital Investment

5.8

7.8

8.4

22.0

19.5

2.5

Depreciation Cost

3.6

4.1

4.9

12.6

12.6

0Total

2nd Plan Compare[FY2018 - Major Facility Plan]
2nd Base in Thailand
New secondary work place at the Sekisui Plastics Gunma
Increase in TECHPOLYMER capacity
Full production of a plant for functional beads[Reference: FY2017 - Major Construction Completion]
Increase in the extruder capacity in Japan
New warehouse and secondary work place in Taiwan
Functional Beads Establishment of a pilot plant
Development equipment for composite sheets11Thank you for your courteous attention.

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The forward-looking statements, including earnings projections,contained
thesematerials
are basedon information
currently
Forecastsinand
otherforward-looking
statements
appearingin thisavailable
to theCompany
and certain
assumptions
consideredreport arebasedon company
judgements
formed fromavailablereasonable,andChanging
may differ
significantly
from actual
etc.
information.
conditions
in a varietyof areasresults
may cause
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a variety ofreasons. in the actual results.
differences12