financial results briefing material...2020/05/08 · chemicals remained weak because pwb...

Explorer in Surface Engineering

Financial Results Briefing Materialfor the Fiscal Year Ended March 2020

JCU CORPORATION

TSE First Section (Stock Code: 4975)

May 8, 2020

1

Summary of Financial Results for FY3/20

Overview of Financial Results

Demand for chemicals remained solid as 5G infrastructure development was activated in China and shipping volume of new and existing models of smartphones increased in Taiwan

Although semiconductor market was on a recovery trend in South Korea, demand for chemicals remained weak because PWB manufacturers withdrew from HDI (high density interconnect) PWB business.

In Japan, business remained resilient with the sale of new models of automobiles in the first half. However, business weakened substantially in the second half, resulting in a sluggish year for demand for chemicals.

Overseas, sales and production in the automobile industry in China was sluggish because of US-China trade friction. Demand for chemicals was weak.

Accounting PeriodJCU (non-consolidated): April 1 to March 31 next yearOverseas subsidiaries: January 1 to December 31

Machine Business

For electronic components

For automotive components

A big decrease in sales caused by a downturn in projects as large as those we received in FY3/19.

2

Summary of Financial Results for FY3/20

(Millions of yen)Consolidated

FY3/18 FY3/19 FY3/20

Results ResultsRevised forecast

(Nov. 1, 2019)

ResultsYoY

% Change

Net sales 23,120 24,866 22,000 22,319 (10.2)%

Operating profit 6,948 7,072 6,150 6,297 (11.0)%

Ordinary profit 6,972 7,192 6,100 6,240 (13.2)%

Profit attributable to owners of parent

4,906 4,963 4,250 4,416 (11.0)%

Net income per share

176.31 yen 178.55 yen 157.07 yen 163.97 yen -

3

Summary Consolidated Balance Sheet(Millions of yen) FY3/19 FY3/20

Current assets 24,103 24,249

Cash and deposits 14,785 12,929

Notes and accounts receivable-trade 6,920 8,282

Inventories 1,822 2,076

Non-current assets 8,071 8,790

Property, plant and equipment 4,461 5,635

Investments and other assets 3,565 3,113

Total assets 32,174 33,039

Current liabilities 4,934 5,773

Notes and accounts payable-trade (incl. electronically recorded obligations-operating)

1,974 2,173

Short-term borrowings (incl. current portion of long-term borrowings)

505 540

Non-current liabilities 2,756 1,938

Long-term borrowings 707 706

Total liabilities 7,691 7,712

Total net assets 24,483 25,327

Total liabilities and net assets 32,174 33,039

Note: Certain line items are omitted.

4

Foreign Exchange Rates

(Yen)

FY3/19FY3/20 FY3/21

(Forecast)1Q 2Q 3Q 4Q

Chinese yuan (CNY)

16.72 16.32 16.20 15.89 15.78 15.61

Taiwan dollar (TWD)

3.67 3.58 3.55 3.52 3.53 3.62

Korean won (KRW)

0.1004 0.0980 0.0961 0.0940 0.0937 0.0914

Note: The average rate for the period is used to translate Chinese yuan, Taiwan dollar and Korean won, our major foreign currencies, to Japanese yen.

7,072

6,297

79 (150)(485)

(39) (217)(2) (70) 110

5

De

crease in

gross p

rofit

of p

urch

ased

che

micals

YoY change

(775)

FY3/19Operating Profit


Changes in Consolidated Operating Profit for FY3/20

De

crease in

pro

fit margin

of ch

em

icals

De

crease in

gross p

rofit

from

the

Mach

ine

Bu

sine

ss

Oth

er facto

rs incl.

de

crease in

SG&

A

expe

nses

Effects o

f exchan

ge rates fo

r che

micals

(du

e to

con

versio

n fro

m lo

cal curre

ncie

s to JP

Y)

De

crease in

gross p

rofit fro

m

oth

er b

usin

esse

s

Incre

ase in

p

erso

nn

el

expe

nses

Japan: (85)Overseas: (25)

Japan: 37Overseas: 33

Incre

ase in

sales o

f che

micals

(Millions of yen)

■ Positive factors ■ Negative factors

6

FY3/20FY3/21

(Forecast)YoY % Change

Net sales 22,319 22,000 (1.4)%

Operating profit 6,297 6,400 1.6%

Ordinary profit 6,240 6,500 4.2%

Profit attributable to owners of parent 4,416 4,450 0.8%

Net incomeper share 163.97 yen 167.68 yen -

Consolidated Earnings Forecast for FY3/21

Note: The above consolidated forecast figures are based on the assumption that the COVID-19 pandemic in the Asian region will mostly subside in July 2020 and onwards and in Japan in October 2020 and onwards.

(Millions of yen)

7

Dividend Forecast

FY3/19 FY3/20FY3/21

(Forecast)

Divid

end

s pe

r share

Interim 22.5 yen 23.5 yen25.0 yen

(an increase of 1.5 yen per share)

Year-end 22.5 yen 25.0 yen 25.0 yen

Annual total 45.0 yen 48.5 yen

50.0 yen(an increase of 1.5 yen per share)

We will continue to make investments for sustainable growth while securing liquidity on hand and maintaining stable financial base. Our basic policy is to pay dividends with a target payout ratio of 25% with an aim for stable dividend growth.

8

Quarterly Consolidated Financial Results

Net Sales (M

illion

s of yen

)

Op

erating P

rofit (M

illion

s of yen

)

1,087

1,263

1,398

1,158

1,054

1,520

1,624

1,302

1,396

1,712

1,957 1,883

1,726 1,701

2,032

1,613

1,278

1,641

1,782

1,596

0

500

1,000

1,500

2,000

2,000

3,000

4,000

5,000

6,000

7,000

8,0001

Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2016/3 2017/3 2018/3 2019/3 2020/3

総売上高薬品売上高営業利益Total Sales Sales of Chemicals Operating Profit

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

1Q 2Q 4Q3Q 1Q 2Q 4Q3Q 1Q 2Q 4Q3Q 1Q 2Q 4Q3Q 1Q 2Q 4Q3Q

9

Quarterly Consolidated Financial Results

Net Sales (M

illion

s of yen

)

Op

erating M

argin (%

)

4,621

5,307

4,750

5,140

4,598

5,916

5,338

4,908 4,764

5,491

6,080

6,785 6,599

6,479 6,471

5,317

4,793

5,391

5,836 6,298

23.5 23.8

29.4

22.5 22.9

25.7

30.4

26.5

29.3 31.2

32.2

27.8 26.2 26.3

31.4 30.3

26.7

30.4 30.5

25.3

0

10

20

30

40

50

60

70

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

2016/3 2017/3 2018/3 2019/3 2020/3

薬品事業(薬品) 薬品事業(仕入製品) 装置事業その他事業営業利益率

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

Chemicals Business (Chemicals)

Chemicals Business (Purchased Chemicals)

Machine Business

Other Businesses

Operating Margin

10

6,070

15,677 15,622

18,580 18,605 18,032

1,472

1,421 1,195

1,345 1,429 1,324

1,656

2,720 3,942

3,194

4,796

2,936

35

27

9,197

19,818

20,760

23,120

24,866

22,319

5.7

24.8 26.5

30.1 28.4

28.2

0

10

20

30

40

50

60

0

5,000

10,000

15,000

20,000

25,000

2010/3 2016/3 2017/3 2018/3 2019/3 2020/3

薬品事業(薬品) 薬品事業(仕入製品) 装置事業その他事業営業利益率

FY3/10

Annual Consolidated Financial Results

Net Sales (M

illion

s of yen

)

Op

erating M

argin (%

)

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

Chemicals Business (Chemicals)


Machine Business

Other Businesses

Operating Margin

11

7,867

209 (70)

7,347

(8) (90)

▲ 1,000

3,000

7,000

11,000

15,000

19,000

薬品事業

装置事業

その他事業

前期4Q累計

2020年3月期

4Q累計

20,034

4,796

35

19,356

2,936

27

▲ 1,000

3,000

7,000

11,000

15,000

19,000

薬品事業

装置事業

その他事業

Ch

emicals

Bu

siness

Mach

ine

Bu

siness

Oth

erB

usin

esses

Consolidated Segment Results for FY3/20

(Millions of yen)

Net Sales Segment Profit (Loss)

Ch

emicals

Bu

siness

Mach

ine

Bu

siness

Oth

erB

usin

esses

FY3/19

FY3/20

(Breakdown)Plating machines 4,084Plasma system 377

Solar powerrelated, etc. 334

(Breakdown)Plating machines 2,379Plasma system 256Solar powerrelated, etc. 300

44%

75% 74%77%

78% 78%

0%

20%

40%

60%

80%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2010/3 2016/3 2017/3 2018/3 2019/3 2020/3

国内海外海外比率

FY3/10

12

Annual Sales of Chemicals in Japan and Overseas

(Millions of yen)

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

Overseas Sales RatioJapan Overseas

13

Annual Sales of Chemicals for POP and Via Filling

POP: Plating on Plastics, mainly for automotive components

Via Filling: Additive for copper plating for PWBs, mainly for smartphones and PCs(Millions of yen)

POP Via Filling

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19FY3/10 FY3/20

POP Via Filling

14

1,092 1,130 1,122 1,219

1,122 1,053

1,154 1,152 1,238

1,188 1,245

1,288 1,252 1,230

1,399

1,294 1,266 1,218

1,262 1,310

1,401

1,701 1,704

1,531

1,300

1,459

1,645 1,740

1,659

1,875

2,016

2,178

1,898 1,994

2,179

1,983

1,612

1,918

2,032 2,111

0

500

1,000

1,500

2,000

2,500


2016/3 2017/3 2018/3 2019/3 2020/3

POP ビアフィリング

Quarterly Sales of Chemicals for POP and Via Filling

POP: Plating on Plastics, mainly for automotive components

Via Filling: Additive for copper plating for PWBs, mainly for smartphones and PCs(Millions of yen)

POP Via Filling

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

15

Quarterly Sales of Chemicals by Region

0

500

1,000

1,500

2,000

2,500


2016/3 2017/3 2018/3 2019/3 2020/3

日本

中国

台湾

韓国

タイ

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

Japan

China

Taiwan

S. Korea

Thailand

(Millions of yen)

16

1,186 1,224 1,229 1,318

1,214 1,161 1,266 1,261

1,341 1,268 1,334 1,373 1,334 1,313

1,492 1,379 1,357 1,302 1,337 1,382

2,510

2,755 2,827

2,606

2,299

2,609

2,854 2,957

2,852

3,219

3,473 3,559

3,169 3,256

3,590

3,192

2,734

3,141

3,342 3,359

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2016/3 2017/3 2018/3 2019/3 2020/3

基幹薬品電子薬品


Consolidated(Millions of yen)

(Chemicals for Electronic Components)Core Products: Via fillingPWBs, connectors, surface treatment (plating) chemicals for semiconductor sector

(Key Chemicals) Core Products: POPChemicals for decoration and rust-proof,surface treatment (plating) chemicals mainly for automotive components and water faucet clasps

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

Key Chemicals Chemicals for Electronic Components


17


Japan(Millions of yen)

394 417 410 422

385 403

458 431 425 415

449 430 419 408

474

409 421 433 409 406

570 558 559

542 527

582

642

587

622 645

677

612 622

578

633

518 547 542

558 538

0

100

200

300

400

500

600

700

800

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2016/3 2017/3 2018/3 2019/3 2020/3


FY3/16 FY3/17 FY3/18 FY3/19 FY3/20



18


Overseas

792 806 819 896

829 757 807 830

916 852 885

943 914 905 1,018 970 936

868 928 976

1,939

2,197 2,268

2,064

1,771

2,026

2,211

2,370 2,229

2,573

2,796

2,947

2,547 2,678

2,957

2,674

2,187

2,598

2,783 2,820

0

500

1,000

1,500

2,000

2,500

3,000

3,5001Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2016/3 2017/3 2018/3 2019/3 2020/3


FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

(Millions of yen)



19


China

426 439 442 496

463 407

454 472 522 497

530 582 600 580

664 615 607

539 591

632

879

1,044 1,107

916

730

926

1,093

1,167

974

1,205

1,337 1,373

1,200 1,198

1,491

1,171

973

1,227

1,447

1,337

0

200

400

600

800

1,000

1,200

1,400

1,6001

Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2016/3 2017/3 2018/3 2019/3 2020/3


(Millions of yen)

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20



20


Taiwan

34 40 31 38 23 25 18 27 29 35 29 38

17 25 23 24 17 23 42 54

491

563 569

641

468 502 504

584 593

665

759

802

589 604

689

642

480

659

697

796

0

100

200

300

400

500

600

700

800

900

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2016/3 2017/3 2018/3 2019/3 2020/3


(Millions of yen)

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20



21

97 100 106 114 105 98 100 112 117 101 105 99 90 86 84 87 76 77 73

97

430 453

423

368 398

434 437 416

484 503

522

575 574

676

573

657

503 482

412

470

0

100

200

300

400

500

600

700

800

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2016/3 2017/3 2018/3 2019/3 2020/3


FY3/16 FY3/17 FY3/18 FY3/19 FY3/20


South Korea(Millions of yen)



22

0

2,000

4,000

6,000

8,000

5,000

10,000

15,000

20,000

25,000

06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3

売上高営業利益当期純利益

Financial Results since Listing (incl. Forecast)

22,300

4,400

22,000

6,400

4,400

6,200

Op

erating P

rofit &

Pro

fit

Net Sales

(Millions of yen) (Millions of yen)

Listed on TSE 2nd Section in Dec. 2005

Upgraded to TSE 1st Section in Mar. 2007

FY3/06 FY3/07 FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

(Forecast)

Net sales ProfitOperating Profit

FY3/21

23

15,677 15,622

18,580 18,605 18,032 18,561

1,421 1,195

1,345 1,429 1,324

1,219 2,720 3,942

3,194

4,796

2,936 2,201

35

27 19 19,818

20,760

23,120

24,866

22,139 22,000

0

5,000

10,000

15,000

20,000

25,000

2016/3 2017/3 2018/3 2019/3 2020/3 2021/3

薬品事業(薬品) 薬品事業(仕入製品) 装置事業その他

Annual Sales by Business (incl. Forecast)

(Millions of yen)

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21

(Forecast)Chemicals Business (Chemicals)


Machine Business

Other Businesses

6,297 6,400

697 (72) (2) (489)(30)

24

Changes in Consolidated Operating Profit (Forecast for FY3/21)

(YoY change)+103

(Millions of yen)



(Forecast)

■ Positive factors■ Negative factors

Incre

ase in

gross p

rofit o

f Ch

em

icalsB

usin

ess

(thro

ugh

YoY

increase

in sales)

De

crease in

gross p

rofit o

f Mach

ine

Bu

sine

ss(th

rou

gh Yo

Y d

ecrease in

sales)

De

crease in

gross p

rofit o

f Oth

er

Bu

sine

sses

(thro

ugh

YoY

decrease

in sales)

Incre

ase in

SG&

A exp

en

ses(in

cl. exchan

ge differen

ces)

Exchan

ge rate

imp

act of gro

ss p

rofits p

rese

nte

d in

finan

cial state

men

ts of o

verse

as sub

sidiarie

s

25

Topics

Environmental Initiativesto Reduce CO2 Emissions

26

Understanding the Current Status of Greenhouse Gases

Out of the greenhouse gases which have significant impact on global warming, JCU has been trying to keep track of and reduce the amount of carbon dioxide (CO2) emission.

In FY2018, our sites in Japan had lower total CO2 emissions attributable to electricity and gas than in FY2014. Looking at the numbers site by site, Niigata Plant, which is our production base, had the highest figure again in FY2018. Niigata Plant had lower CO2 emissions than in FY2017, however, with lower production volume of the products considered to be one of the factors. On the other hand, R&D Center had larger CO2 emissions than in FY2017, and we suspect that it was due to the introduction of equipment with a large electric capacity.

Total CO2 emissions from the sites in Japan

* The figures are calculated from the electricity and gas consumed at each site. * Calculations use the emission coefficient by electricity supplier (Ministry of the Environment)

and the coefficients for the following utility service providers: Joetsu City Gas and Water Utilities Bureau, Toho Gas, Lpgas Association, and TEPCO Energy Partner.

CO2 emissions by site in Japan

FY2014 FY2015 FY2016 FY2017 FY2018

FY2016 FY2017 FY2018

HeadOffice

Sales and Marketing

Department

OsakaBranch

KyushuSales

DistrictOffice

NagoyaBranch

R&DCenter

Niigata Plant(Production

Headquarters)

27

For Lower CO2 Emissions

In FY2019, JCU consolidated its Head Office (Taito-ku, Tokyo), which had occupied two floors, into one floor. With this measure, we can expect to reduce CO2 emissions from Head Office by approximately 3%.

Consolidating Office Floors

Niigata Plant (Joetsu City, Niigata Prefecture) has installed a solar power generation equipment, utilizing environmentally friendly energy and contributing to the reduction of CO2 emissions derived from thermal power generation. It is expected to make environmental contribution by helping the reduction of the operating rate of thermal power plants.

Introduction of Solar Power Generation Equipment

Effect of introducing solar power generation equipment *1 Based on the actual carbon dioxide (CO2) emission coefficient

published by Tohoku Electric Power.

*2 Based on the nitrogen oxide (NOx) emission intensity published by Tohoku Electric Power.

*3 Based on the sulfur oxide (SOx) emission intensity published by Tohoku Electric Power.

*4 Based on the coefficients from the performance in FY2015.



Other Specific Measures For Reducing CO2

Reduced CO2 emissions*1 (t-CO2/year)Reduced NOx emissions*2 (kg-NOx/year)Reduced SOx emissions*3 (kg-SOx/year)

FY2016*4 FY2017*5 FY2018*6

Installing additional solar power generation equipment at Niigata Plant (Production Headquarters). Replacing lightings to LEDs at R&D Center (Kawasaki City, Kanagawa Prefecture). Planting grapevines at Sorapuchi Farm, a subsidiary operating wine business. Formulating the reduction targets by 2023.

Reference

Company Profile

Major Distribution Channels

Major Products

2929

Founded in ： December 1957

Established on ： April 1, 1968

Capital stock ： 1,220 million yen

Annual sales ：Non-consolidated: 12.2 billion yen / Consolidated: 22.3 billion yen (For the fiscal year ended March 31, 2020)

Head office ： TIXTOWER UENO 16F, 8-1 Higashiueno 4-chome, Taito-ku, Tokyo

Lines of business ：

Manufacturing and sale of surface treatment chemicals, surface treatment machines, and related materials

RepresentativeDirectors ：

Keiji Ozawa, Chairman and CEOMasashi Kimura, President and COO

Employees ： Non-consolidated: 257 / Consolidated: 580 (As of March 31, 2020)

ISO Certificates

ISO9001 Production Headquarters, Chemicals Procurement Department, Head Office Sales and Marketing Department, and R&D Center (JCQA-0281)

ISO14001 Production Headquarters and R&D Center (JCQA-E-0143)

Company Profile

Major Distribution Channels

JCU

Co

rpo

ration

Ou

r ove

rseas

Sub

sidiarie

s

Spe

cialist platin

g co

mp

anie

s

Au

tom

ob

ile M

anu

facturers

JCU

Co

rpo

ration

Ou

r ove

rseas

sub

sidiarie

s

Sub

strate M

anu

facture

rs(in

Japan

, Ch

ina, Taiw

an,

Sou

th K

ore

a, etc.)

Smartp

ho

ne M

anu

facturers

Sem

icon

du

ctor

Man

ufactu

rers

Spe

cialist platin

g co

mp

anie

s

Customers (sold-to)

Man

ufactu

rers of au

tom

ob

ile p

arts (Tier 1

, Tier 2

)

Automobiles

Smartphones

30

Major Products

31

Chemicals Business

For decoration andrust-proofing(Key chemicals)

Automotive parts (front grilles, door handles, emblems, etc.)Faucet parts (water supply equipment, showerheads, drain plugs, etc.) Construction materials (bolts, nuts, etc.)

For electronic components(Chemicals for electronic components)

PWBs (reversible and multilayer substrates, build-up boards, package substrates, etc.)Electronic components (lead frames, chip components, connectors, etc.)Semiconductors (silicon wafers)

Machine

Business

Fully-automated surface treatment equipment

Fully-automated equipment from input of materials to completion of the plating process

Peripheral equipmentManufacturing and sale of filtration machines and other peripheral equipment to be attached to surface treatment equipment

Automatic analytical control systems

Automatic management of plating solutions by analyzing concentrations of chemicals and adding chemicals when an insufficient level is detected

Plasma system Etching and washing devices for PWBs as part of pre-plating processes

Solar power generation equipment

Installation and operation of solar power generation equipment (photovoltaic panels)

This material contains current plans and forecasts of future performance of the Company. These plans and forecast figures are prepared by the Company based on currently available information. This material does not give any assurance or guarantee of the Company’s future financial performance and actual results may differ substantially from these plans for a number of conditions or developments in the future.

JCU CORPORATION’s websiteURL: https://www.jcu-i.com/

Contact：Corporate Strategy OfficeTEL: +81-3-6895-7004

financial results briefing material...2020/05/08 · chemicals remained weak because pwb...

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