FY2017 Second Quarter
Financial Result
November 7, 2017

Sekisui Plastics Co., Ltd.
(First Section of Tokyo Stock Exchange, Code Number: 4228)

0FY2017 1H Financial Result - Outline(Unit: billions of yen)

FY2016 1H
Results

FY2017 1H
Plan

FY2017 1H
Results

YoY

Versus Plan

(A)

(B)

(C)

(C)－(A)(C)－(B)Net sales

48.72

53.30

54.70

+5.98

+1.40

Overseas sales

7.48

8.70

9.58

+2.10+0.88(Overseas sales ratio)(15.4%)(16.3%)(17.5%)(+2.1%)(+1.2%)

Operating income

2.39

2.00

2.73

+0.34

+0.73

(operating income ratio)(4.9%)(3.8%)(5.0%)(+0.1%)(+1.2%)

Recurring income

2.06

2.00

2.73

+0.67

+0.73

Net income attributableto owners of the parent

1.32

1.30

1.79

+0.47

+0.49

Both net sales and incomes increased relative to the previous FY and the plan.
- Industry Segment: Sales and incomes increased by the global growth (in the Home Appliance/IT field) and business expansion of automotive components.
- Human Life Segment: Sales and incomes increased since the high-functional sheet businesshas been in good shape and selling unit prices has been revised.
Operating income, recurring income and net income attributable to owners of the parent posted
new records ever in the first half.
1FY2017 1H Results: Industry Segment(Unit: billions of yen)

FY2016 1H
Results

FY2017 1HPlan

FY2017 1H
Results

YoY

Versus plan

(A)

(B)

(C)

(C)－(A)(C)－(B)Net sales

17.96

22.20

22.55

+4.59

+0.35

Operating income

1.02

1.43

1.71

+0.69

+0.28

(Operating income ratio)(5.7%)(6.4%)(7.6%)(+1.9%)(+1.2%)

Recurring income

0.83

1.14

1.48

+0.65

+0.34

◆ TECHPOLYMER: Demand for use in light diffusion applications including LCD panels

recovered and increased significantly on YoY.
◆ PIOCELAN: Demand has been in good shape for use in LCD panel transportationmaterial applications for home appliance/IT in Asia, and increased significantly due
to the automotive business expansion to large vehicles.
22

FY2017 1H Results: Human Life Segment(Unit: billions of yen)

FY2016 1H
Results

FY2017 1H
Plan

FY2017 1H
Results

YoY

Versus plan

(A)

(B)

(C)

(C)－(A)(C)－(B)Net sales

30.76

31.10

32.15

+1.39

+1.05

Operating income2.33

1.90

2.36

+0.03

+0.46

(Operating income ratio)(5.7%)(6.4%)(7.6%)(+1.9%)(+1.2%)

Recurring income

1.88

1.47

1.94

+0.06

+0.47

◆ 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.
◆ Although sales volumes were flat compared to the previous year, a flexible pricing

policy allowed YoY increases in the net sales.

33

FY2017 2H Revised Plan - Outline(Unit: billions of yen)

FY2016FY2017

AnnualResults

1HResults

YoY

AnnualInitial Plan

Versus
Initial Plan

Net sales

102.4

54.70

58.1

112.8

+10.4

112.0

+0.8

Overseas sales

17.1(16.7%)

9.6(17.5%)

9.7(16.7%)

19.3(17.1%)+2.1(+0.4%)

19.2(17.1%)

0.1(0%)

Operating income

5.4

2.73

3.57

6.3

+0.9

5.8

+0.5

(operating income ratio)(5.3%)(5.0%)(6.1%)(5.6%)(+0.3%)(5.2%)(+0.4%)

Recurring income5.0

2.73

3.47

6.2+1.2

5.7+0.5

Net income attributableto owners of the parent

3.4

1.79

2.31

4.1+0.7

3.8+0.3――

6. 5%+0.8%

6. 1%+0. 4%(Overseas sales ratio)

(ROE)

5. 7%

2H
AnnualRevised Plan Revised Plan

4FY2017 2H Revised Plan: Industry Segment(Unit: billions of yen)

FY2016FY2017

AnnualResults

1HResults

Net sales

40.2

22.55

24.05

Operating income

2.6

1.71

(6.5%)

2.0(Operating income ratio)

Recurring income

2H
AnnualRevised Plan Revised Plan

YoY

AnnualInitial Plan

VersusInitial Plan

46.60+6.40

46.40+0.20

2.02

3.73+1.13

3.64

+0.09

(7.6%)(8.4%)(8.0%)(+1.5%)(7.8%)(+0.2%)

1.48

1.72

3.20+1.20

3.10+0.10◆ Global - Business Expansion

Home Appliance/IT field: China, Taiwan, Europe and the Americas
Automobile field:
Asia and Europe
Medical/Health Care field: Europe and the Americas◆ Proactive introduction of new products/goods (ST-LAYER, ELASTIL, TECHEATER)◆ Customer expansion and in-share increase (PIOCELAN, TECHPOLYMER, ST-gel)

55

FY2017 2H Revised Plan: Human Life Segment(Unit: billions of yen)

FY2016FY2017

AnnualResults

1HResults

Net sales

62.2

32.15

34.05

Operating income

4.7

2.36

(7.5%)

3.8(Operating income ratio)

Recurring income

2H
AnnualRevised Plan Revised Plan

YoY

AnnualInitial Plan

Versus
Initial Plan

66.20

+4.00

65.60

+0.60

2.69

5.05

+0.35

4.58

+0.47

(7.4%)(7.9%)(7.6%)(+0.1%)(7.0%)(+0.6%)

1.94

2.26

4.20

+0.40

3.70

+0.50

◆ Increase in in-store shares at existing bead/sheet customers◆ Business expansion of functional food containers (microwaveable/freezable containers)◆ Expansion of import/export businesses in agriculture/fishery field(strengthened development of freshness preservation materials)◆ Expansion of fabrication businesses by regional representative companies, and in Asia
◆ Cost reduction through energy-saving and productivity-improvement activities, as well

as by wide-area logistics innovation.

66

Capital Investment Status(Unit: billions of yen)
FY2017FY2016
Results

1H
Results

2H
AnnualRevised Plan Revised Plan

YoY

AnnualInitial Plan

Versus
Initial Plan

Capitalexpenditures

5.8

2.7

1.9

4.6

-1.2

4.8

-0.2

Depreciation

3.52.02.2

4.2+0.7

4.20[FY2017 - Facility Plan]◆ Major Facilities

Increase in the extruder capacity in Japan
Establishment of a new warehouse/fabrication work place in Taiwan
Increase in the capacity of TECHPOLYMER
Functional Beads Establishment of a pilot plant[Refence: FY2016 - Construction Completion]◆ Major Facilities

Established a new molding facility in Mexico
Increased production capacity in EU and established sales base and labo facility
Established a new warehouse at the Kanto office7

FY2017: Dividend(Units: yen per share)

FY2016FY2017AnnualResults

Interim

Dividend per share

*24.0

12.0

Consolidated payout ratio

32.9%

Year-end
Total(prospective) (prospective)
15.0

27.0

YoY
+3.0

30.2%

(*) Converted value after the stock consolidation in October 2016 (two shares into one)

[Dividend policy]◆ The basic policy is to return incomes to shareholders based on consolidated
performance as well as the stability of the dividend, and accordingly a consolidated
payout target of 30-40% has been set.
◆ In accordance with performance trends, the year-end dividend will increase from¥13 per share to ¥15 per share.
◆ Acquisition of treasury share will be conducted regularly and consistently.

(FY2016: 875,000 shares acquired)8

New 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 Innovate and visualize thought, action and structure by all the members
9Mid-Term Management Plan

Key Measures
Make Innovations 60 Key Measures(1) Business portfolio transformation (expansion of business/customer bases)● Thorough implementation of the PDCA cycle in order to adapt to themarket/competitive environment● Speed-up of the global sales expansion● Maximization of synergistic effects with YAMAKYU and considerationof new M&As

(2) Speed-up of the business model transformation● Effective PR activities and increase in corporate brand awareness● Reconstruction of solution-offering sales and enhancement of multi-stage
sales approaches● Enhancement of group-wide development for the fabrication businessIndustry seg.
sales ratio

Overseas
sales ratio

FY2016
ResultsFY2017
RevisedPlanFY2018
Targets39%

41%

50%

FY2016
Results

FY2017
RevisedPlan

FY2018Targets

17%

17%

25%

FY2016
Results

FY2017
RevisedPlan

FY2018Targets

7%

9%

20%

Strategicmerchandise
sales ratio(3) Strengthening of development capabilities by transforming
the development promotion system● Transfer of the themes of New Business Application Development Center tobusiness divisions and launch of new business subjects● Sharing of information on prototypes using development facilities, andutilization of exhibitions in Japan and overseas● Strengthening of information collection for next-generation strategic merchandise

FY2016 - FY2018 revised
cumulative figures

Investment fordevelopment¥4.0 billion

10Mid-Term Management PlanKey Measures
Make Innovations 60 Key Measures(4) Enhancement of competitiveness to build
a high-profitability structure● Appropriate responses to raw material price trends● Improvement of Group profits by individual profitability, and clarification ofinput resources● Wide-area logistics reform through logistics consultants

FY2018 targets

Reducelogistics
expenses

Reductions ofmore than 20%(versus
FY2015)(5) Personnel portfolio transformation / human resource development● Streamlining of back-office personnel in entire Group● Sharing of Group personnel vision, and individual development in each department● Review of the personnel systems from a viewpoint of Group management members

11Thank you for your courteous attention.

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URL:http://www.sekisuiplastics.co.jp/
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The forward-looking statements, including earnings projections,contained
thesematerials
are basedon information
currently
Forecastsinand
otherforward-lookingstatements
appearingin thisavailable
to theCompany
and certain
assumptions
consideredreport arebasedon company
judgements
formed fromavailablereasonable,andChanging
may differ
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from actualetc.
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conditions
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a variety ofreasons. in the actual results.
differences12