1Year Ended May 26, 2023 (76th Term)

Financial Results Briefing
May 9, 2023

S.T. Corporation
Takako Suzuki, President & CEOReport on the Financial Results
Summary for the 76 th Term

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Summary of the Business Performance in FY3/23■Net sales grew from the previous year, although thesales of the core business fell below the forecast.
■Operating profit dropped.
The increase in product prices could not cover therise in ratio of cost of sales due to the skyrocketing ofcosts and the loss on valuation of inventory.

■Profit increased.
In the previous year, there was an impact ofextraordinary losses.

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Highlights of the Business Performance in FY3/23<Consolidated>

Net sales and profit increased
Consolidated

Sales
ratio

Vs.
Forecast

YOY

Net sales¥45.6 bn-

95.9％

100.2％

Operating profit¥2.4 bn

5.3％

94.7％

74.3％

Ordinary profit¥2.7 bn

6.0％

95.8％

78.4％

Profit attributableto owners of parent¥1.8 bn

4.0％

96.2％

164.9％

Comprehensive
income attributableto owners of parent¥2.0 bnDividend: ¥40 (¥38 in the previous fiscal year)
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Highlights of the Business Performance in FY3/23<Consolidated>
FY3/23
ActualNet sales
Cost of sales
Gross profit
Selling, generaland administrative
expenses

Operating profit

Sales ratio

YOY¥45.6 bn-100.2％¥28.6 bn

62.8％

103.5％¥17.0 bn

37.2％

95.2％

¥14.5 bn

31.9％

99.9％

¥2.4 bn

5.3％

74.3％

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Highlights of the Business Performance in FY3/23<Sales in each Business Category>Business category

Sales

Composition
ratio

YOYAir Care

(Air Fresheners andDeodorizers)¥19.8 bn43％

99％

Cloth Care(Mothproofing Agents)¥8.0 bn

18％

97％

Thermal Care(Disposable Warmers)¥4.7 bn

10％

108％

Hand Care(Household Gloves)¥5.8 bn

13％100％Humidity Care (Dehumidifiers)¥3.0 bn

7％

105％Home Care(Other)¥4.3 bn

9％

102％

Total

¥45.6 bn

100％

100％

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6Factors behind the Increase/Decrease in Operating Profit in
FY3/23 <Consolidated>

Increase/decreasein operating営業利益 5.7億円増加 profit
Operating profit decreased ¥835 mil.
Factors behindincrease

784

Decreases in purchasing and manufacturing costs, etc.
Increase owing to growth of the sales quantity369

Increase owing to the raised selling prices

347
14

Decreases in marketing costs
Factors behinddecrease-1,243

Rising material costs, etc.
Decrease due to selling price reduction
Increases in loss on abandonment ofgoods, loss on valuation of inventory, etc.

-840
-265
-1

Other

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Unit: Million yen7

Dividends in FY3/23 <Consolidated>

Toward continuously stable dividend payment*Payout ratio: 48.6％Dividend

Basic

1株配当金
per share

1株純利益earnings
per share

単位：円

Unit: Yen

113.90109.58102.19
83.57

82.22

81.66

56.74
49.91
40.83

42.01
3126.01
2222222224

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/1836363738

FY3/19FY3/20FY3/21

FY3/22

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40

FY3/238

Air Care
Existing products did not sell well,
but products with high added value sold well.
Sales of products with high added value grew.

New products contributed.

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Cloth Care
Healthy as a whole,although shipment was delayed.
Monthly shipment amount of
mothproofing agents of S.T.

2020

2021

2022

Feb.

Mar.

Effect of thelingering summer
heatApr.

MayJun.

Jul.

Spring wardrobe change season(Feb.-Jun.)
99% year on year

Aug.

Sep.

Oct.

Nov.

Fall wardrobe change season(Aug.-Nov.)
98% year on year
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Dec.

Jan.

Spring wardrobe change season(Feb.-Mar.)
101% year on year10Hand Care
The demand for hygiene subsided, and weconcentrated on products for professional use.
The sales of products related to COVID-19 subsided.
Gloves for professional use contributed.

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OtherDemand for products that make home chores easierremained healthy.

Sales of Dashu-Tan: 102.0％ year on year
Sales of Kome-Touban: 111.9％ year on year
Sales of laundry tub cleaners: 109.1％ year on year

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Overseas
Overseas sales declined, due to the strategicwithdrawal from business of selling gloves in Europe
Variation in overseas sales (consolidated)
Unit: 100 million yen

4030

7.2
35

Before adoption of
Accounting Standard forRevenue Recognition

7.8837

6.1
29

6.0
30

6.5 6.3
3231

Composition of overseas sales (by region)

88％ year on year

88％ year on year

The sales in South America
grew, but the sales in otherregions declined.

The sales in Taiwan and Southeast Asia
were healthy. The sales in China, Hong
Kong, etc. were sluggish.

6Other 12%
112％ year on year

Asia 41%

The sales of thermal care

204 products increased.

102U.S. 37%¥1.23 bn
66% year on year

Europe 11%00
FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23

Sales overseas

Ratio of sales overseas

18％ year on year
Dropped considerably from the previousyear, due to the withdrawal from thebusiness of selling gloves.
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Progress with Cost Reduction Efforts
Cost of sales ratio rose more steeply than expected.

Cost of sales ratio

60.8％

62.8％

(FY3/22)(FY3/23)

Skyrocketing of raw material prices, exchange rate
fluctuations, and decrease of selling prices of gloves
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Response to the Rise in Prices of Raw Materials andChanges in Exchange Rates

Measures for offsetting
the augmentation of costs
Improvement through the optimization of ourproduct lineup
Price hikes for some products from Jan.
Efforts to reduce costs

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Greetings from the newpresident Kozuki

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Strategies for FY3/24

To concentrate on the existing core business andincrease profitability
Measures for coping with the skyrocketing of costs

To continue initiatives for growing domains

To develop the foundation for surviving the ESG era

17

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To Concentrate on the Existing Core Business andIncrease Profitability (1)The largest sharein the domestic Air Care market

To meet emerging demand with products developed
under certain themes
To communicate with customers by combining TV,
digital media, and selling spaces
To expand growing sales channels, such as EC

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18To Concentrate on the Existing Core Business andIncrease Profitability (2)To meet the emerging demandfor Cloth CareTo respond to diverse purchase behavior
To reel in and develop new users

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Measures for Coping With the Skyrocketing of Costs

Response to the rise in raw material prices
and fluctuations in exchange rates
To raise product prices
To reduce costs
To promote products with high prices andhigh added value

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To Continue Initiatives for Growing Domains

For mid-term growth
B2B: Concentration on Air Care products andimprovement in revenues from gloves
Overseas: To focus on EC in China and Thailand
New: To develop a new Air Care business and a new
brand of Clear Forest

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To Develop the Foundation for Surviving the ESG Era

To improve corporate value
in order to survive the ESG era

To strengthen the system for developing products
To focus on human capital in business administration
To fortify the system for corporate governanceTo conduct data-driven management
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Factors behind the Increase/Decrease in Operating Profit in
FY 3/24 <Consolidated>
Operating profit grew 30 million yen thanks to the increase ofrevenues, despite the investment for growth.
Factors behindincrease

1,747

Raised selling prices

Reduction in the cost764

Fluctuation in sales quantity

127

Factors behinddecrease-1,073

Increase in raw materials cost
Sales deduction (such as rebates)-258

Increase in marketing expenses

-193

Other

Effects of compositionof sales quantity
on sales: -1,091
on costs: +1,218-1,078

Unit: Million yen(labor cost, commissions, R&D costs, research cost, etc.)
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Forecast for FY3/24 <Consolidated>

Increase in net sales and profit
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％

Estimated dividend: ¥42*Payout ratio: 49.2％

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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.
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