Year Ended March 31, 2022 (75th Term)

Financial Results Briefing
April 27, 2022

S.T. Corporation

Takako Suzuki, President & CEO
The year-on-year comparisons have been estimated in accordance withthe Accounting Standard for Revenue Recognition.

Today’s Briefing Agenda①Report on the Financial Results Summary②Business Strategies for the New Fiscal Year

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2

Summary of the Business Performance in FY3/22■ Sales and profit decreased.
■ The mainstay business delivered satisfactory results.
■ Revenue from the HAND Care Business dropped afterthe temporary rise amid the Covid-19 pandemic.
■ The THERMAL Care Business had a impairment loss.

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Highlights of the Business Performance inFY3/22<Consolidated>

Sales and profit decreased
Consolidated

Compared to theinitial forecast

Rate of increase/decrease on thepremise that the new accounting
standard was applied in theprevious fiscal year

95.7％

99.1％

84.8％

96.1％

Ordinary income

45.5 bn.
¥3.2 bn.
¥3.5 bn.

88.5％

94.4％

Profit attributable toowners of parent¥

1.2 bn.

42.7％

46.6％

Net sales¥

Operating income

Comprehensive income
attributable to owners ofparent

267 mil.

¥Dividend: ¥38(¥37 in the previous fiscal year)

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Highlights of the Business Performance inFY3/22<Consolidated>

FY3/22
ActualNet sales
Cost of sales
Gross profit

Sales ratio

Sales ratio on the premisethat the new accounting
standard was applied in theprevious fiscal year

45.5 bn.

--¥

27.7 bn.

60.8％

61.7％

17.8 bn.

39.2％

38.3％

1.5 bn.

32.1％

31.0％

3.2 bn.

7.1％

7.3％

¥¥SG&A expenses¥

Operating income¥

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5Highlights of the Business Performance in FY3/22<Sales in each Business Category>Business category

Composition
ratio

Rate of increase/decrease on thepremise that the new accounting
standard was applied in theprevious fiscal year

20.0 bn.

44％

101％

Sales

AIR Care(Deodorizers/air fresheners)

CLOTH Care

(Mothproofingagents)¥

8.2 bn.

18％

99％

THERMAL
Care(Disposablewarmers)¥

4.4 bn.

10％

110％

HAND Care(Household gloves)¥

5.8 bn.

13％

88％

HUMIDITY
Care(Dehumidifiers)¥

2.8 bn.

6％

90％

HOME Care(Other)¥4.2 bn.

9％

108％45.5 bn.

100％

99％

Total

¥

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6

Factors behind the Increase/Decrease in Operating Income in FY3/22<Consolidated>

Increase/decrease in operating income
営業利益 5.7億円増加
Operating income decreased ¥130 mil.
Factors behindincrease

804

・Increase owing to the raised selling prices

282

・Decreases in purchasing and manufacturing costs, etc.
・Increase owing to growth of the sales quantity
・Other221102

Factors behinddecrease・Rising material costs, etc.

-703

・Decrease due to selling price reduction-429
・Increase owing to a rise in marketing-202
expenses
・Increases in loss on abandonment ofgoods, loss on valuation of inventory, etc. -207
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単位:百万円
Unit: Million
yen7

Dividends in FY3/22 <Consolidated>

Toward continuously stable dividend payment*Payout ratio: 73.5％
1Dividend
株配当金
per1Net株純利益
incomeper share

share

113.90109.58

単位:円
Unit:
Yen

83.57

102.19
81.66

56.74

51.82
40.83

42.01

26.01
2222222222243136363738

3.48

期 2014.3
期 2015.3
期 2016.3
期 2017.3
期 2018.3
期 2019.3
期 2020.3
期 2021.3
期 2022.3
期2012.3
FY3/12期 2013.3
FY3/13
FY3/14
FY3/15
FY3/16
FY3/17
FY3/18
FY3/19FY3/20FY3/21
FY3/22
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AIR Care

High-value added products yielded satisfactory results
High-value added products for home use produced
satisfactory results.
Products for vehicles and industrial use started to follow
a recovery trend.

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9CLOTH Care
Business performance was on a par with that in an average year
because demand from housebound consumers subsided
Scale of the market of mothproofing
agents (year-on-year)

FY3/21
21.3月期

FY3/22
22.3月期Demandfromhouseboundconsumers

Apr.

4月

May.

5月

Jun.

6月

Jul.

7月

Aug.

8月

Sep.

9月

Oct.

10月

Nov.

Dec.

11月 12月

Jan.

1月

Feb.

2月

Mar.

3月

Source: Data on mothproofing agents (excluding ones for dolls) (based on an estimated sales scale and amount) by INTAGE Inc. SRI+
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10HAND Care
Business performance was affected by a decrease in people’s

衛hygiene awareness and price fluctuations
FY3/21
21.3月期

Scale of the market of householdgloves (year-on-year)

Apr.

4月

May.

5月

Jun.

6月

Jul.

7月

Aug.

8月

Sep.

9月

Oct.

10月

Nov.

Dec.

11月 12月

Source: Data on household gloves (based on an estimated sales scale and amount) by INTAGE Inc. SRI+
Copyright © S.T. Corporation. All rights reserved.

FY3/22
22.3月期

Jan.

1月

Feb.

2月

Mar.

3月

11HUMIDITY Care
Business performance was affected by low rainfall in the rainy season
Market scale of dehumidifiers(year-on-year)

FY3/21
21.3月期
FY3/22
22.3月期

Apr.

4月

May.

5月

Jun.

6月

Jul.

7月

Aug.

8月

Sep.

9月

Oct.

10月

Nov.

11月

Dec.

12月

Source: Data on dehumidifiers (based on an estimated sales scale and amount) by INTAGE Inc. SRI+
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Jan.

1月

Feb.

2月

Mar.

3月

12Other

Demand for hygiene products and products
for eating at home continued to be healthy

Sales of Dashu-Tan
98.3％ year on year
Sales of Kome-Touban103.5％ year on year
Sales of laundry tub cleaners 123.8％ year on year

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13

Overseas

Business grew in Thailand and China
amid structural reform
Variation in overseas sales (Consolidated)
Unit: 100 million yen

40
30

7.3

33

7.2
35

7.8
37

Composition of overseas sales (by region)

Before adoption ofAccounting Standard for
Revenue Recognition

6.1
29

6.0
29

6.5

8

146％ year on year

Strong performance inIndia and South America

Other8%in the wake of the Covid-19

144％ year on year

Strong performance in Thailandand China75％ year on year

31206
Demand for household gloves
pandemic subsided

4U.S. 22%

Asia 31%1,867 mil.

¥107% year on year

10200

FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22
Sales overseas

Ratio of sales overseas

Europe 39%

104％ year on year

Strong performance with household gloves, disposable
warmers, and products under the AIR Care category

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14

Progress with Cost Reduction Efforts

Cost of sales ratio improved

Cost of sales ratio

61.7％％(FY3/21)(FY3/22)

Cost of sales ratio on the premisethat the new standard was applied

Costs of Shoshu-Riki, products under the THERMAL Care
category, and Kome-Touban went down.
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15

Summary of the Current Fiscal YearThe existing businesses delivered powerful performance
while the new businesses did not achieve the forecast performance
Policy for FY3/22

Major approaches

Solidify the revenue
structure of the existing
businesses

AIR Care: Occupy the largest share

Enriched Shoshu-Riki Premium Aroma andDEOX

CLOTH Care: Maximize profit

Focused on the mite-proofing agentmarketOverseas: Focus on Asia

Launched Shoshu-Riki Premium Aroma

B2B: Strengthen S.T. PRO

Had difficulty in delivering satisfactorybusiness performance with household
gloves and industrial products

E-commerce: Develop products for exclusive saleand marketing methods

Expanded products for exclusive sale

THERMAL Care: Develop year-round products andmarkets for the products

Faced an environment of intensifying
competition

Clear Forest: Create new businesses

Launched S.T. Pet

Market of industrial disinfectants: Enhance
approaches to takeBusiness performance with industrial
products started to follow a recoverytrend

Futuristic AIR Care products: Start development

Started a project

Enhance resources forgrowth engines

Enter and grow new
business fields and markets

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Progress

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Regarding the THERMAL Care Business

Drastic revision of strategies
The trend of warm winter continued.
Overseas business operation stagnated due to theCovid-19 pandemic.
Development of new products was behindschedule.
Competition in the markets in Japan intensified.
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17

Significant Reform of the Board Composition and Organizational Structure

Toward an organizational structurethat thoroughly pursues the customer first policy

Unify marketing strategies designed for Japan andoverseas.
Increase the power of creating markets that will
open up the future.
Strengthen the governance and risk management
systems.

To becomea general marketing company
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①Report on the Financial Results Summary②Business Strategies for the New Fiscal Year

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19

Strategies for FY3/23

Drastic reform of the revenue structure of the existing businesses

Concentration of resources on growth areasClarification of a business development system

Formulation and disclosure of long-term ESG strategies
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Drastic Reform of the Revenue Structure of the Existing Businesses 1

AIR Care: No. 1 global growth
Enhance high-value added productsContinuously strengthen area marketing

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Drastic Reform of the Revenue Structure of the Existing Businesses 2

CLOTH Care: Taking in new demand
Satisfy diversifying storage styles
Grow neighboring categories

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Concentration of Resources on Growing Areas

Selection and concentration
Review unprofitable and slow-growth products
Reallocate resources to growing areas
Enhance the business investment system

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Clarification of a Business Development System

Enhancement of the power of creating markets
for opening up the future
Newly establish a new business development department
New industrialization process
Marketing investment for market creation

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24Formulation and Disclosure of Long-term ESG Strategies

For improving corporate value
over the medium and long term
Launch a corporate value creation department
Formulate more strategic long-term ESG strategies
Strategize personnel affairs for realizing the strategies

Air Refreshing Action 2030
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Increase/Decrease in Operating Income Forecast in FY3/23<Consolidated>

Operating income will decrease by 670 million yen
due to an increased investment for growth
Factors behindincrease

1,420

・Increase owing to an increase in the sales quantity, etc.
・Reduction in the cost

1,058

・Raised selling prices

14Factors behinddecrease・Increase in raw materials cost・Sales deduction (such as rebates)
・Increase in marketing expenses
・Other-727
-507
-353

Unit: Millionyen
単位:百万円(such as system-related depreciation cost, examination/research cost, labor cost, and activity cost)-1,576

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Forecast for FY3/23 <Consolidated>

T h e F i r s t Ye a r o f R e b i r t h < G r o u n d w o r k >Consolidated

YOYNet sales¥47.5 bn.

104.5％

Operating income¥2.5 bn.

79.2％

Ordinary income¥2.8 bn.

82.6％

Profit attributable toowners of parent¥1.9 bn.

165.0％

Estimated dividend: ¥40
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*Payout ratio: 46.8％
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To become
a company loved bystakeholders

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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 notassure or guarantee that the numerical forecasts and policies herein will be realized.
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