financial statement for fy 2003 - sekisui chemical · spiritual climate of an enterprise cs quality...
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Financial Statement for FY 2003Financial Statement for FY 2003
Sekisui Chemical Co., Ltd.Naotake Okubo
27 April 2004
2
5793150Net Income
167Dividend
107168275Recurring Income
91140231Operating Income
1527,9978,149Sales
ChangesFY2002 ActualFY2003 Actual
(yen)
(100 Mil. Yen)Sales and Operating Income for FY2003
Our prominent businesses bringing us stronger competitive power
2
3
Summary of FY 2003Housing
Establishing Predominant Competitivenessby Environmental Activities & LCC & Housing with no heating and lighting expenses
Infrastructure & EnvironmentSecuring Predominant Competitivenessin the core business of water supply & drainage system
High Performance PlasticsSmooth expansion of IT & Automotive related business
Our prominent businesses bringing us stronger competitive power
4
70150220Net Income
3710Dividend
105275380Recurring Income
119231350Operating Income
3518,1498,500Sales
ChangesFY2003 ActualFY2004 Plan
(yen)
(100 Mil. Yen)Sales and Operating Income for FY2004
Accomplishing Operating Income of 35 billion yen
3
5
231
140
0
100
200
300
400
500
600
2002 2003 2004 Plan
Trend of Operating Income
350350350
Brushing up: Our Prominent Businesses
Environmental ManagementEnvironmental Management
CS Quality ManagementCS Quality Management
Accomplishing Operating Income of 35 billion yen
Distinguishing Sekisui Brand
((100 100 Mil. yen)Mil. yen)
Brushing up:
6
1000
1500
2000
2500
3000
2002 2003 2005
Progress Rate Progress Rate against the Planagainst the Plan
54%54%
Growing with “Environment”Sales expansion of the utility-cost-free housesExpanding the pipeline-restoring business
Renovating management with “Environment”Promoting cost reduction by reducing the load onto the environment
Achieving Zero Emission in all of the factories(in FY 2002)
Achieving Zero Emission in the houseconstruction sites (in FY 2003)
Establishing a prominent position with environmental solutions
(100 Mil.yen)Sales of EnvironmentSales of Environment--
conscious Productsconscious Products
2005 Plan 250 b. yen2005 Plan 250 b. yen ((100 b.yen increase100 b.yen increase
from FY2002from FY2002))
20402040
15001500
25002500
24
32
46
20
25
30
35
40
45
50
55
60
FY2001 FY2002 FY2003
Ratio of Solar GeneratorRatio of Solar Generatormounted housemounted house
30
46
70
0
50
100
FY2002 FY2003 FY2004Plan
(%) (100 mil yen)
Plan
Sales of Environ.&Civil Eng. Div.Sales of Environ.&Civil Eng. Div.<<Restoration PipeRestoration Pipe>>
4
7
Spiritual Climate of an EnterpriseSpiritual Climate of an Enterprise
CS Quality Management Dept. newly established (2004.4.1)Slogan:Sekisui Chemical has done it amazingly !
Establishing a prominent position with “CS Quality”C
ustomers
Custom
ers
HousingHousing
Infra. & Infra. & EnvironEnviron..
HPPHPP
Creating the System to trace customersCreating the System to trace customers’’ voicevoiceback to the sourceback to the source
Qualityof
Products
Qualityof
Persons
Qualityof
System
○: Emphasized area ofCS Quality
CustomersCustomers
○○○
○○○○○○
○○○○○○
○○○
Reformation of Corporate CultureReformation of Corporate Culture
Customer-ContactsCore
TechnologyProduct Creation Sales After
8
Advancing into the growing markets with our prominent technology
Promoting globalization
Positive Investment Positive Investment in IT, Automotive & in IT, Automotive &
Piping Related Piping Related BusinessBusiness
Making the System for Making the System for further Expansion & further Expansion &
DevelopmentDevelopment
Start-up of Thai Plant (Interlayer Film)Construction of China Plant (Int. Film)Obtained the management right of Shanghai Sekisui Holy Plastics (Functional Materials)Obtained the management right of Korean Young Bo Chemical (Functional Materials)Establishment of Sekisui (Qingdao)Plastics Co. (Functional Materials)Establishment of Wuxi SSS-Diamond Plastics Co., Ltd. (EF fittings) etc.
Positive Development in Positive Development in AutomotiveAutomotive--related related
Business etc.Business etc.
Expansion of NL Plant (Interlayer Film)
Construction of PVB Resin PlantCapital participation in Zotefoams (Functional Materials)
Establishment of a Holding Company (SEKISUI EUROPE BV) etc.
EuropeEurope U.S.A.U.S.A.AsiaAsia
Establishment of a Holding Company(SEKISUI AMERICA CORPORATION)
5
9
Investment and FinancingAreas:China & EuropeApplication Fields:IT & Automotive-related Materials
Preceding studies on Technologies
Growing seeds for the future
Studies on the technology for comfortable living
Studies on the restoring & recycling technology of Piping lines
Studies on the FPD & Semi-conductor Materials
10
6
11
General ManagerCorporate Finance, Accounting and Planning Department
Naofumi Negishi
Financial Statement for FY2003Financial Statement for FY2003
12
■ Number of Consolidated Companies
9
142
End Mar.2003
9Companies in
Equity Method
+3 Newly consolidated, -7 Combined-3 Liquidated, -1 Separated134Consolidated
companies
ChangesEnd Mar.2004
■ Amount influenced by the change of consolidated companies
+29
+3
-3Shanghai Sekisui Holy Plastic 4Korea Yong Bo Chemical 48Sekisui Koki -52Environment General Consultant -2
Total Assets
Operating Income
Sales
(100Mil.yen)
Financial Statement for FY2003
7
13
Financial Statement for FY2003 Summary of Income & Loss
93
73
166
142
140
168
-38
66
140
2,119
28.2%
2,259
7,997
FY2002
55221Income before tax
1985Investment Income/Loss under equity method
-8854Extraordinary Expense
-1400Extraordinary Income
57150Net Income
-370Corporate income tax etc.
107275Recurring Income
-3-41Other non-ope. Income/Loss
91231Operating Income
82,126Sales & Gen. Admin. Expenses
0.7%28.9%Rate of Gross Income
982,357Gross Income of Sales
1528,149Sales
ChangesFY2003
(100Mil.yen)
14
-81059-4100-305Eliminated orNot Attributed
911521407,9972318,149Total
4-184-32788-28604Others
19951041,7231231,818HPP
262661,897331,923UIEP
50110533,9991034,109Housing
Ope. Inc.SalesOpe. Inc.SalesOpe. Inc.Sales
ChangesFY2002 ActualFY2003 ActualYear
Sales and Operating Income per Company
Financial Statement for FY2003
(100Mil.yen)
8
15
Analysis on Operating Income(with P.Y.)
91
327
61
-100
-50
0
50
100
Total Increase in Sales Fixed Cost CR etc.
Financial Statement for FY2003
(100Mil.yen)
16
Analysis on Operating Income(with P.Y.)
110
66(55)
44
SalesChanges from P.Y.2002 ActualFY2003 Actual
53
-5(-5)
58
Ope. Income
10(9)
661(442)
5(4)
727(497)
Living EnvironmentBusiness
(Fami S included)
403,338983,382House Business
503,9991034,109Total
HousingOpe. IncomeSalesOpe. IncomeSales
Financial Statement per Company for FY2003
14178
15
50
-4
-25
0
25
50
Total Increase in no. ofstructures
Fixed Cost CR etc.
Increase in Sales
Housing
Living EnvironmentLiving
Environment
(100Mil.yen)
(100Mil.yen)
9
17
0
26
1511
-25
0
25
50
Total Sales Amount Fixed Cost CR etc.
Analysis on Operating Income(with P.Y.)
61,897
FY2002
UIEP2633Ope. Income
261,923Sales
Changes (P.Y.)FY2003
Financial Statement per Company for FY2003
(100Mil.yen)
(100Mil.yen)
18
29
19
1-22
11
-25
0
25
50
Total Increase in Sales Forex Fixed Cost CR etc.
Analysis on Operating Income(with P.Y.)
1041,723
FY2002
HPP19123Ope. Income
951,818Sales
Changes (P.Y.)FY2003
Financial Statement per Company for FY2003
(100Mil.yen)
(100Mil.yen)
10
19
Sales and Operating Income per region
62977109186Asia
3912-5194189U.S.A.
911402311527,9978,149Total
-54-1-28-202-230Eliminated or Not attributed
02202122Others
0202017234251Europe
86103189907,6407,730Japan
ChangesFY2002FY2003ChangesFY2002FY2003
Operating IncomeSales
Financial Statement for FY2003
(100Mil.yen)
20
Non-operating Income/Loss
Sekisui House (+16)196685Income under Equity Method
28
-20
-18
FY2002
Misc. Income (-5)Misc. Expense (+1)-7-27Miscellaneous
Income & Expense
16
4
Changes
44Total
Received (-2), Paid (-6)-14Financial Income
Main Breakdowns FY2003
Financial Statement for FY2003
(100Mil.yen)
11
21
Extraordinary Income/Expense
Financial Statement for FY2003
-124124-<Extraordinary Income>Income from the released assignment on the employees’pension fund management
-1616-Income on selling fixed assets
-83223Loss on sales & removal of fixed assets-2828-Revaluation Loss on Securities in Investment
<Extraordinary Loss>
-77-Transfer from Allowance for bad debt
127Increased amount paid for early retirement6324Loss on the disposal of fixed assets due to
reorganization of business
-467731Structural Improvement Expenses
-52
Changes
-2
FY2002
-54Income or Loss
FY2003(100Mil.yen)
22
Total Assets
1.03 times
7,997
7,512
Mar. 2003
1528,149Sales
-1.09 times Turnover Rate of
Total Assets
-247,488Total Assets
ChangesMar. 2004
Financial Statement for FY2003
(100Mil.yen)
12
23
Inventories
Financial Statement for FY2003
ChangesMar. 2003Mar. 2004
4 (1)293297ProductsOthers
15 (18)135150Other Inventories
48 (48)761809Total
Housing
41(41)
-12(-12)
233274Other Inventories
10088Land for sale
* The figures in “( )” show the amount excluding the newly-consolidated increments.
(100Mil.yen)
24
Interest Bearing Liabilities
1,938863253
1250571
Mar. 2003
-4071,531Total
ChangesMar. 2004
-35827Long-term Loan-2251Bond-01Bond redeemable in one year
-20050C P-169401Short-term Loan
Financial Statement for FY2003
(100Mil.yen)
13
25
Consolidated Cash Flow
1,938
227185
-112-370
-211471
FY2002
=Sales Activity CF+Investment Activity CF-Dividend paid
1,531Balance of Interest bearing Liability
415Free Cash Flow
225Term-end Balance of Cash & Cash Equivalent
40Increment in Cash & Cash Equivalent
-405Cash Flow from Financial Activities
-131Cash Flow from Investment Activities
579Cash Flow from Sales Activities
FY2003
Financial Statement for FY2003
(100Mil.yen)
26
Financial Statement for FY2003
-85547-127361UIEP
-9251242-18284266Total-528234610Eliminated or
Not attributed
-31612-72922Others20106125998107HPP
-134734-117867Housing
ChangesFY2002FY2003ChangesFY2002FY2003Capital ExpenditureDepreciation
Depreciation & Capital Expenditure(100Mil.yen)
14
27
17,329
2,858
End Mar. 2003
-342*16,987Consolidated
-3052,553Non-consolidated
ChangesEnd Mar. 2004
* Assuming that number of subsidiaries are on the basis of FY2002, the employees would be 16,855 persons, which means the reduction of 474 persons in real terms.
(No. of persons)
Situation of Employees for FY2003
28
Profit Plan for FY2004
114221335Income before Tax4570115Corporate Income Tax etc.
08585Investment Income/Loss under Equity Method
70150220Net Income
9-54-45Extraordinary Income105275380Recurring Income-14-41-55Other Non-operating Income/Loss
119231350Operating Income242,1262,150Sales and Gen. Admin. Exp.
0.5%28.9%29.4%Rate of Gross Income1432,3572,500Gross Income of Sales3518,1498,500Sales
ChangesFY2003FY2004(100Mil.yen)
15
29
Sales & Operating Income per Company
Profit Plan for FY2004
0550-3050-250Eliminated or Not attributed
1193512318,1493508,500Total
-2-104-28604-30500Others
271321231,8181501,950HPP
3777331,923702,000UIEP
571911034,1091604,300Housing
Open.Inc.SalesOpen.Inc.SalesOpen. Inc.SalesChangesFY2003 ActualFY2004 PlanYear
(100Mil.yen)
30
Analysis on Operating Income(with P.Y.)
119
-30
24
125
-50
0
50
100
150
Total Increase in Sales Fixed Cost CR etc.
Profit Plan for FY2004
(100Mil.yen)
16
31
Profit Plan for FY2004 per Company
4557
-22
24
-8
18
-50
0
50
100
Total Increase in no. ofstructures
Fixed Cost CR etc.
Housing
Analysis on Operating Income(with P.Y.) (100Mil. yen)
191
73(53)
118Sales
Changes (from P.Y.)FY2003 ActualFY2004 Plan
103
5(4)
98Open. Inc.
10(6)
727(497)
15(10)
800(550)
Living Environment Business
(Fame S business included)
473,3821453,500House Business
574,1091604,300Total
HousingOpen. Inc.SalesOpen. Inc.Sales
(100Mil.yen)
Living Environment
LivingEnvironment
Increase in Sales
32
18
37
145
-25
0
25
50
Total Sales Amount Fixed Cost CR etc.
Profit Plan for FY2004 per Company
Analysis on Operating Income(with P.Y.)(100Mil. yen)
373370Open. Inc.UIEP 771,9232,000Sales
Changes (from P.Y.)FY2003FY2004
(100Mil.yen)
17
33
4427
-14 -14
11
-25
0
25
50
Total Increase inSales
Forex Fixed Cost CR etc.
Profit Plan for FY2004 per Company
Analysis on Operating Income(with P.Y.)(100Mil. yen)
27123150Ope. Inc.HPP 1321,8181,950Sales
Changes (from P.Y.)FY2003FY2004
(100Mil.yen)
34
Plan for FY2004
3237240Research &
Development Expenses
10266276Depreciation
58242300Capital Expenditure
-23115311300Balance of Interest Bearing Liability at
term-end
ChangesFY2003FY2004
(100Mil.yen)
18
35
Company PresidentTomohiko Yasuda
Housing CompanyHousing Company
“Prominence in Environment-friendliness”
36
3338 3382 3500
661 727800
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
FY2002 FY2003 FY2004 Plan
Fami S (included)Living Environment BusinessHousing Business
Trend of Sales and Operating Income
39993999 41094109
442
The Houses with “No Utility Charges” pulling Our Business in FY2003
43004300
497 550
145
98
58
15
5
-5-20
0
20
40
60
80
100
120
140
160
180
FY2002 FY2003 FY2004 Plan
Fami S (included)Living Environment BusinessHousing Business
5353
103103
160160
SalesSales Operating IncomeOperating Income
-5
4
10
(100Mil.yen)(100Mil.yen)
19
37
41343948
36833785
4035
2933
48
7774
65
24
32
5046
1000
1500
2000
2500
3000
3500
4000
4500
FY2001 FY2002 FY2003 FY2004 Plan0102030405060708090
Total Orders Tiled House RatioAll Electrification Ratio Solar Generator Mounted Ratio
Trend of Housing Order-TakingThe houses with no utility chargesThe houses with no utility chargesare smoothly put on the market.are smoothly put on the market.
Housing Starts Bottomed OutHousing Starts Bottomed Outin FY2003in FY2003
(%)
The Houses with “No Utility Charges” pulling Our Business in FY2003
(100Mil.yen)
38
Differentiation by thorough appeal of “Environment”
Start tackling the issue of “Zero Emission” activities in Fami S business.
Investment in Human ResourcesIncrease in Sales PersonnelReinforcing Education & Training
Enhancing Profitability by Standardized Production and Enhancing Profitability by Standardized Production and InstallationInstallation
Securing High QualityPromotion of CR
Intensive challenge toward the improvement in CS and Compliance
Establishing the Momentum of Increasing Sales and Profitability for FY2004
Aiming at Aiming at ““3,000 persons3,000 persons”” structure in FY2005structure in FY2005
No Utility ChargesNo Utility ChargesEnvironmentEnvironment LCC(LCC(Life Cycle Cost)Life Cycle Cost)
20
39
c.1975~c.1985 c.1975~c.1985 The period of getting own houseThe period of getting own house
c.1896~c.2000c.1896~c.2000The period of expanding floor spaceThe period of expanding floor space
All-out Differentiation under “Prominence”
ConstructionConstruction SystemSystemPhysics &Physics &ChemistryChemistry
Machinery & Machinery & ElectricityElectricity
LeadingLeading--edge Technologyedge Technology ““Unit SystemUnit System””
Prominence
Seeking for AmenitySeeking for AmenityReducing the Load to EnvironmentReducing the Load to Environment EconomyEconomy
A New Model with No Utility Charges「Parfait AE」
Apr. 2004 on the market
circa 2000 ~ The period of seeking for “Comfortable Living”
-- Changes in Housing Market Changes in Housing Market --
The First Step: Warmed Surroundings (All Heated Rooms)
40
Strengthening Competitiveness in the Detached Housing SalesReinforcing Sales Power
Reinforcement in Product LinesIncrease in Sales PersonnelPerfection of the internal qualification system for sales personnelSales to be supported by ECO Heim Promotion Dept.
Expansion of Object Markets
Reinforcing Business in Apartment & Rental Housing
Continuing our concern in the customers without land.
Aiming at “3,000 persons” structure in FY2005
Orders to be received in FY2004=115% of FY2003
Housing Business
Solar GeneratorSolar Generator Tiled WallTiled Wall All ElectrificationAll Electrification Heat Insulation EfficiencyHeat Insulation EfficiencyZero EmissionZero Emission ReRe--use Systemuse System Loan for the models of Loan for the models of ““No Utility ChargesNo Utility Charges””
Appealing Appealing ““EnvironmentEnvironment””, , ““LCCLCC”” & & ““No Utility ChargesNo Utility Charges””
Putting on the market a new model with “No Utility Charges”
On my thinking about ECOLOGY, I have become ECONOMY
I'm
Eco Heim
21
41
Further Enhancement of Profitability and Continued Expansion
Housing Renovation BusinessImproving CS by Thorough Long-term Support System (60years)
Improvement in the quality and frequency of the periodical check on customers’ houses.Improving the function of communication with customers
Increase in Sales per CapitaPerfection of Environment-conscious Menu (Solar Electric Generator etc.)Enhancing Education and Training
Start tackling the issue of Zero EmissionReal Estate Business
Enhancing the business supporting the change of houses (Used-house Circulation)
Living Environment Business Operating Income for FY2003 500 mil.yen Planned Operating Income for FY 2004
1,500 mil.yen
Planned sales for FY2004=110% of FY2003
42
Heat insulation effect available only by the Unit Construction Method
The Effect brought by High-performance appliances and the Total Electrification.
“Energy Creation” effect realized by Solar Generation
Amount of selling electricity in daytime
> Amount of purchasing electricity
The roofing specifications accommodating the high-performance Solar Electric Generator.
High-performance water-heaterTotal electrification specifications with economical off-peak electricity.
Our standard specifications have cleared the energy saving requirements for the next generation.The structure of superb heat-insulation and air-tightnessDesign performance has been surely attained owing to the house making in a factory.
Solar Electric Generating System
=
Total Electrification
High Air-tightness & Heat Insulation
For your Reference : The House of “No Utility Charges”
22
43
Company PresidentToyoo Manabe
Urban Infrastructure Urban Infrastructure & &
Environmental Products CompanyEnvironmental Products Company
Aiming at “ An Environmental Solution Company”
44
6
70
100
33
-30
1.7%
-5.6%-4.1%
7.0%
-0.1%
-50
0
50
100
150
2001 2002 2003 2004 2005
-5.0%
0.0%
5.0%
10.0%
15.0%
Aiming at Aiming at ““ An Environmental Solution CompanyAn Environmental Solution Company””
1)1)By the drastic reformation of the By the drastic reformation of the
Portfolio, we will achievePortfolio, we will achieve
ROA 7%ROA 7%
Operating Income 10 b. yenOperating Income 10 b. yen
2)2)By the early startBy the early start--up of the up of the
Environmental Solution Business, Environmental Solution Business,
we will establish the 40 billion yen we will establish the 40 billion yen
business in the three fields.business in the three fields.
3)3)With the key words With the key words ““SYSTEMSYSTEM””
and and ““GLOBALGLOBAL””, we will structure , we will structure
a new business model. a new business model.
MediumMedium--Term PolicyTerm Policy MediumMedium--Term TargetsTerm Targets
Operating Income
(100Mil.yen)
ROA(Right scale)
23
45
Expansion of the Growth & New BusinessesSmooth Expansion of Restoration Pipe Business
Enhanced the profitability of the Core BusinessOperating Income improved by 1.5 b.yen from P.Y.
Drastic Improvement in unprofitable businessesAchieving profitability in all the businesses
Withdrawal from some businesses
Restructuring of businesses
Sales for FY2003Sales for FY2003 4.6 b.yen4.6 b.yen ( (from P.Y.from P.Y. 153153%)%)
The Results of FY2003
Operating income got into the black.Operating income got into the black.
Aqua-system →Growth business
The Earth Business
Home EnergyFFU
Operating IncomeOperating Income
+2633Total
-8-22Strategic Investment
+143
FFURoofing Materials
Aqua-systemHome-TechnoHome Energy
Earth
Unprofitable
+513Plant Materials
Power & InformationReinforced PipeTouto Sekisui
Secured Profitability
+1553Water supply & drainage sys.Building Materials
Core Business
+2-13Environ. & Civil Eng.
New BusinessWood
Growth & New
Improvementfrom P.Y.FY2003Divisions
(100Mil.yen)
46
Results of FY2003Progress in the Portfolio Reformation
UnprofitableGroup Ⅲ
0~5%Group Ⅱ
more than 5%Group Ⅰ
Recurring Income Rate
189.7 189.7 b.yenb.yen 192.3 192.3 b.yenb.yen
FY2002 FY2003
Group Ⅰ
13%
Group Ⅱ
81%
Group Ⅲ
6%Group Ⅰ
9%
GroupⅡ
47%
Group Ⅲ
44%
24
47
Shifting to the growth phase with our enhanced prominence for tShifting to the growth phase with our enhanced prominence for t he realization of he realization of ““An Environmental Solution CompanyAn Environmental Solution Company””
Policy for FY2004
Main Items of Implementation for FY2004Further enhancement of business profitability
for the step-out toward a new growthReinforcing the profitability of the core business(Structuring No.1 profitability in the industry)Reinforcing the business basis for the stable profitability(Making a scenario for the core business)Expanding growth areas & new businesses
Promotion of CS Strategy linked with Business ActivitiesRealization of the Customer Contact Center
Implementation of Environment-conscious ManagementIncreasing the sales of environment conscious productsImproving the environmental performance(Reduction in CO2&waste materials)
48
With further enhanced business profitability we are taking steps toward the Growth
Operating Income Plan
+776+1669Water supply & drainage sys.Building Materials
Core Business
+628+722
Plant MaterialsPower & Information
Reinforced PipeFFU
Roofing MaterialsHome-Techno
Secured
Profitability
70-21
0
2004
+37 +2
+11
Improvementfrom P.Y.
±0-21Strategic Investment
+30100Total
+1717Environ. & Civil Eng.
New BusinessWood
Growth&
New
Improvementfrom P.Y.2005Divisions
(100Mil.yen)
25
49
Enhancing Profitability of the Core Business (Structuring No.1 profitability in the industry)
Main Items of ImplementationIncreasing selling prices of main PVC products(PVC pipe and Decks)
Implementing the reformation plan for distribution(Improvement in Sales Productivity and the New Distribution Strategy)
Implementing the Cost-down Strategy
Further Enhancement of Business Profitability
Operating Income 6.9 b.yen(+1.6 b.yen from P.Y.)
Securing a prominent position with Design, New Materials and Competitive Cost
Building Materials
Securing a prominent position with No.1 profitability in the industry.
Water supply & drainage system
““ProminenceProminence””DivisionsDivisions
50
“Prominence” in Engineering works technique and Evaluation SkillsHome-Techno
“Prominence” in Comfortable & Reliable product quality, Sales Quality and Installation Quality.Roofing Materials
“Prominence” in proposing to customersFFU
“Prominence” in the capability of technical proposals to customersReinforced Plastic Pipe
“Prominence” as a leader in the environment-conscious business (The project for the underground power lines)
Power & Information Infra.
Securing the “Prominence” in IT field in the worldPlant Materials
““ProminenceProminence””DivisionsDivisions
Reinforcing the business basis for the stable profitability ((Making a scenario for the core business)
Operating Income 2.2 b.yen(+ 700 mil.yen from P.Y.)
Further Enhancement of Business Profitability
26
51
WoodWood Water EnvironmentWater Environment
Pipe RestorationPipe Restoration
<Environmental Solution Business>Securing Securing ““ProminenceProminence”” in SPR Installation Technology and System Engineeringin SPR Installation Technology and System Engineering
①Brushing-up the pipe restoration core technology (Automatization/Speed-up) ②Business Expansion with SPR (Korea & U.S.A.)
Securing Securing ““ProminenceProminence”” in Cascade Technology and Recycling Technologyin Cascade Technology and Recycling Technology
①Starting-up of REW Business(Working on Business Plan and Investment) ②Enhancing competitiveness in the Wood-Resin Composite Technology (EX Bd)
Securing Securing ““ProminenceProminence”” in Water Environment Solution Businessin Water Environment Solution Business
①Starting-up of new model(Restoring the water system in condominiums and Industrial
Effluent Operation) ②Expansion of Aqua Civil Engineering and Sinklear
7 7 b.yenb.yen
24 24 b.yenb.yen
Expanding Growth Area & New Businesses 1Expanding Sales of Environmental Solution Business
Stepping-out toward a New Growth
FY2003 26 b.yen ⇒ FY2004 31 b.yen
52
Wuxi
Qingdao
Stepping-out toward a New Growth
FY2004 Overseas Sales RateFY2004 Overseas Sales Rate 55%%
FY2004 China SalesFY2004 China Sales 2 b.yen2 b.yen
Specializing in the development Specializing in the development related to the Environmentalrelated to the Environmental
Solution BusinessSolution Business
Expanding Growth Area & New Businesses 2Speeding-up the Global Expansion
Proceeding businesses in China -Putting the determined businesses to a stable path(Sekisui Qingdao, Wuxi SSS-Diamond Plastics)
-Studying the new businesses(Piping System in Buildings & RCP)
Overseas Expansion of the Pipe Restoration Business
Expansion of New Business and New Products
CF, Z-FoamAcceleration of starting-up the business on SS ProjectExpansion of System Piping Businesses (PEX System, Drainage Header Parts)
Sales Expansion of High weather resistant rain gutter and Low Elongation rain gutters
27
53
Environment conservation :Circulation of penetrated water
Measures against flood:Controlling Outflow
Water utilization ;Measure for drought、water-saving
Securing water under emergency
Features of the SystemFeatures of the System
Piled pipe unit
Meeting plot size ・ Easy installation
Sprinkling & Car wash etc10% Toilet
24%
Bath24%
Washing24%
Cooking24%
Establishment of the law for counter-measuring floods in the specified cities (2003.6)Availability of Subsidy system in local governments
No. of days before recovery: Electricity :3days Water:30daysAnxiety over possible Tokai and Nankai earthquakes
Water usage 250 L/D・capita
WaterWater--circulation Piping System in a housecirculation Piping System in a house
Saving in 7 years the water equivalent volume to the Lake Biwa
Overflow
Car Wash
Sprinkling
Penetration
Outflowcontrol
Bath
Toilet
Storage & purification
Rain water drain
Misc. waterPurified water
Outflow control, Penetration
Emergency water
Storage, Purification and Utilization of Rain water
Automatic discharge of waste
Clean water
Low Maintenance
Purifying function
Overflow
SterilizationPh Adj.
Water
utilization
Filter
53
54
28
55
High Performance Plastics CompanyHigh Performance Plastics Company
“ Chemistry for your Win”
Company PresidentGen Endo
56
“Chemistry for your Win”Company Concepts
Intermediate Materials with business proposals--- The Gathering of Solution Businesses
1.Growth Strategy ~Bundles of Strong Businesses~ 2.Structural Reformation ~Coping with the changing market~
Grp.ⅡGrp.Ⅱ
Grp.ⅣGrp.Ⅳ
Grp.ⅠGrp.Ⅰ
Grp.ⅢGrp.Ⅲ
(Enhancing Competitiveness)
(Business Expansion)
(Alliance &Company Separation)
(Shifting toGrowth Field)
Grow
th
↑High
High→Technology power
Business PortfolioBusiness Portfolio Portfolio CriteriaPortfolio Criteria
Within Income after Tax5%Grp.Ⅳ
*ROA :Income before tax/Total assets
Within Ordinary Depreciation10%Grp.Ⅲ
Within Cash Flow10%Grp.Ⅱ
Strategic Management15%Grp.ⅠROA
Investment YardsticksTarget for ‘05
29
57
1835 17231818
1950 2000
0
500
1000
1500
2000
2500
'01 '02 '03 '04 '05
40
104123
150
200
12.0
-0.3
5.16.2
7.8
0
50
100
150
200
250
'01 '02 '03 '04 '05-5
0
5
10
Operating Income
ROA
Trend of Consolidated Profit & LossChanged to a growth line from FY 2003
(100 Mil. Yen) (%)SalesSales Operating Income & ROAOperating Income & ROA
“Chemistry for your Win”
(100 Mil. Yen)
58
510 570 640 770
160 160
540 530590
600
540 390390
330
700
150190
160
620
400
0
500
1000
1500
2000
'01 '02 '03 '04 '05
Selection and Expansion of Business PortfolioTrend of ROATrend of ROA Trend of SalesTrend of Sales(%)
(100Mil.yen)
G.Ⅲ
G.Ⅱ
18351723 1818
20001950
G.Ⅳ
G.Ⅰ
“Chemistry for your Win”
<10%>
<10%>
<5%>
<’05Target 15%>
FilmPrecision-Ind.Life-tech.
Packaging TapeFunctional Materials
Sign SystemAdhesives
Fine ChemicalChemical Specialty
Industrial Tape
MedicalInterlayer Film
12.07.86.2Company Total
6.32.71.7
Grp. IV
13.17.06.3
Grp. III
20.08.25.0
Grp. II
25.822.623.8
Grp. I
‘05‘04‘03BU
30
59
213160
246 251166
241
Asia Europe U.S.A.'03 '04
11..Expansion of Overseas BusinessExpansion of Overseas Business
305 348444
132143
170230
470473
190
34%34%
29%
24%
35%
'01 '02 '03 '04 '05
Overseas SalesOverseas Sales
Export
Overseas Ratio
Overseas Business
Production LocationsProduction Locations
<Sales per Region>
491436
614700
663
Rate of Overseas Income 57%
Growth Strategy
18161312Total
6555U.S.A.
4333Europe
8(4)
8(4)
5(1)
4(1)
Asia & Oceania
(Incl. China)
‘05‘04‘03‘02
-Overseas Sales 70 b.yen, Overseas Ratio 35%
60
22..Transformation of Business ContentsTransformation of Business Contents-Entering the leading-edge & growth Areas
173140 170303
673413101117202
43% 51%51% 55%52%
'01 '02 '03 '04 '05
A-type New ProductsA-type New Products
476303
237174130
Growth Strategy
Enhancement of Environmental functional materials & Reformation materials.230210180
Functional Bldg. Materials(BD250)
51%49%46%Sales Ratio (Total)
400
120
170
‘03
Global Expansion of Interlayer film & functional materials ; Industrial adhesive tapes420360Automotive (AT500)
Overseas Development & Alliance (Blood related prod.)130120Medicals (MD200)
Development of Liquid Crystal & Mounted Materials; Speed-up of Market Development220130
Electronics Information Materials (IT300)
Measures‘04‘02<Four Main Areas>
Super-A
31
61
Important Business Area
Liquid Crystal Display Materials
Semi-conductor related Materials
Present Main Products
Fine Particle Products(Spacer & Electro Conductive Fine Particles)
Binder for ceramicsSemi-conductor processing materials (Temporary adhesion)
Product Groups to be enhanced & expanded
Chemical Materials for Liquid crystal TVElectro Conductive Fine Particles (for ACF)Light sensitive resin(UV-sealing material & photo resist)Optical Film (Retardation Film & Brightness improving Film)
Very thin wafer processing materials & Semi-conductors binding materials (Permanent adhesion) Selfa(Very thin material processing tape, Dicing tape) Mount-binding materials(NCF,DAF, Resin core welding
ball)
Growth StrategyExpansion of IT FieldExpansion of IT Field
80 105140
1852530
40
60
2535
40
55
0
100
200
300
400
'02 '03 '04 '05
Sales
(hundred Mil..yen
)
<Trend of Sales per field>
300220
170130
Semi-conductor related Materials
Liquid Crystal Display Materials
62
Directing Film
UV Sealing Agent
Color Filter
Glass Substrate Retardation Film
Polarization Board
Conductive Particles
Spacer
Anisotropic Conductive Film(ACF)
Driver LSI
Conductive Particles(for ACF)
Printed Substrate
Controlling IC
Wave Sheet (High Luminance Film)
Light Guiding Board
Diffusion Board
Materials for Liquid Crystal Display
The Film for Liquid Crystal DisplayThe Film for Liquid Crystal Display Chemical Materials for LCDChemical Materials for LCD
32
63
Thin Film Processing Tape[Selfa Back Grind][Selfa Dicing]
DAF(Die Attach Film)
NCP, NCF(Non-Conductive Paste )( Non-Conductive Film)
Plastic cored solder ball [SOL]
Semi-conductor related materialsSilicon Chips
64
Some of the displayed data such as Prospects, Plans and Forecasts, that are not past results, have been worked out on the inference of our management with reference to currently available information. Therefore, please keep it in mind that the actual results of our business could become largely different from our plans and forecasts etc. depending on changes in various material factors.
1. Main data in Housing businessFinancial year 2003 Financial year 2002 2001
FH SH FH+SH FH SH FH+SH FH+SHSales (in 100 Million yen) 2,019 2,090 4,109 1,999 2,000 3,999 4,159 Housing 1,663 1,719 3,382 1,678 1,660 3,338 3,640 (Houses) (1,614) (1,657) (3,271) (1,624) (1,609) (3,233) (3,534) (Land) (49) (62) (111) (54) (51) (105) (106) Living environment 357 371 727 321 340 661 519 (Reforming) (245) (252) (497) (212) (230) (442) (336) (Interior-Exterior) (21) (25) (46) (18) (22) (40) (32) (Real estate) (91) (94) (184) (91) (88) (179) (151) 1. Number of houses sold (unit) 7,650 8,460 16,110 7,680 8,160 15,840 17,540 Detached houses 6,080 6,190 12,270 6,240 6,010 12,250 13,770 (Heim) (4,330) (4,420) (8,750) (4,460) (4,320) (8,780) (9,380) (Two-U Home) (1,750) (1,770) (3,520) (1,780) (1,690) (3,470) (4,390) Apartment 1,570 2,270 3,840 1,440 2,150 3,590 3,7702. Main data Price<Sales subsidiaries-Detached Ho.> 27.4 27.1 27.3 27.3 27.2 27.3 27.4 /unit (Mil.yen) Price<Sales subsidiaries-Detached Ho.> 65 66 65 63 64 64 63 /Tsubo(3.3m2)(10thou.yen) Floor space(m2) 140 137 138 143 140 142 143 Exhibition places (unit) 509 - 487 543 - 531 550 Sales staff (no. of persons) 2,588 - 2,490 2,662 - 2,565 2,654 Replacement ratio(%) 39 40 40 40 40 40 44 Introduction sales ratio(%) 30 29 30 31 30 30 32
2. Housing order intake (Unit : Mil. Yen)Financial year 2004 Financial year 2003 Financial year 2002
FH Plan SH Plan Plan2004 FH SH FH+SH FH SH FH+SHBacklogs at beginning 161,900 169,000 - 148,500 156,600 - 151,727 148,000 - Growth rate 9% 8% - -2% 6% - -7% 2% -New orders 203,600 209,800 413,400 196,118 198,692 394,810 181,677 186,649 368,326 Growth rate 4% 6% 5% 8% 6% 7% -3% -3% -3%Sales of houses 196,500 201,800 398,300 188,018 193,392 381,410 185,404 186,149 371,553 Growth rate 5% 4% 4% 1% 4% 3% -10% 1% -5%Backlogs at the end 169,000 177,000 - 156,600 161,900 - 148,000 148,500 - Growth rate 8% 9% - 6% 9% - 2% -2% -
3. Housing starts (1,000units)Financial year 2003 Financial year 2002 2001
FH SH FH+SH FH SH FH+SH FH+SHHousing starts 603 565 1,168 598 548 1,146 1,173Privately-owned houses(=A)(included in above) 207 164 371 199 167 366 377Sales by our company 8 8 16 8 8 16 18Detached house sales by our co. (=B) 6 6 12 6 6 12 14Our share in detached houses (=B/A) 2.9% 3.8% 3.3% 3.1% 3.6% 3.4% 3.7%
4. Order intake of houses with additional specificationsFinancial year 2003 Financial year 2002 2001
FH SH FH+SH FH SH FH+SH FH+SHSolar electric generators installed 47% 50% 46% 30% 34% 32% 24%Special walling tiles (Heim type JX) 33% 38% 35% 28% 31% 29% 33%Totally electrified model 73% 76% 74% 62% 68% 65% 48%
OTHERS
Housing Company Results
CONSOL