Fuji Seal International : FY2023 First Quarter Financial Results Supplementary Briefing Materials

FY2023 First Quarter Financial Results

Supplementary Briefing Materials

Fuji Seal International, Inc.

August 9, 2023

Copyright 2023 Fuji Seal Group

Table of Contents

1. Financial Results for the First Quarter of FY 2023
2. Shift to management based on cost of capital
3. Initiative for Sustainable Growth

・New model plant to support sustainable growth ・Expansion of pharmaceutical business

4. First Quarter Topics

・Integrated Report 2023

・Environmental Initiatives

Copyright 2023 Fuji Seal Group

2

Key Points of FY2023 1Q Financial Results and

Progress toward Full-Year Earnings Forecasts

• Sales increase year-on-year, in particular, ordinary profits and net income increased substantially.
• Compared to the full-year announced figures, sales and operating profits are generally in line.

		FY2022	FY2023	Increase/Decrease	FY2023Annouced Vs. Announcement
(Millions of yen)	1st quarter	1st quarter	(Amount)	(% )	full year	Progress rate
Net sales		43,739	47,015	+3,275	+7.5%	191,000	24.6%
Operating profits	2,638	2,833		+7.4%	10,600	26.7%
(Operating Profit	+195
Margin)		(6.0%)	(6.0%)		(△0.0pt)	(5.5%)	(+0.5pt)
Ordinary profits	2,909	3,708		+27.5%	10,300	36.0%
(Ordinary Profit	+799
Margin)		(6.7%)	(7.9%)		(+1.2pt)	(5.4%)	(+2.5pt)
Net profits		1,851	2,445	+594	+32.1%	6,200	39.4%
(Net Profit Margin)	(4.2%)	(5.2%)		(+1.0pt)	(3.2%)	(+2.0pt)
Foreign Currency	USD	116.34	132.42		+13.8%	125.00	+5.9%
Translation
EUR	130.40	142.16		+9.0%	135.00	+5.3%
Rate (average)

[N.B.] For the first quarter, the results for the Japan and FSPT are for the period from April to June, Figures for the Americas, Europe, and ASEAN (excluding FSPT) are January-March results.

Copyright 2023 Fuji Seal Group

3

FY2023 1Q Financial Results (1) Net Sales by Region

• Consolidated net sales increase year-on-year, but net sales increased slightly excluding the impact of foreign exchange. By region, sales increased in Japan and decreased in all other regions excluding the impact of foreign exchange.

			FY2022	FY2023	Year-on-
	(Millions of yen)		1st quarter	1st quarter	year change
Consolidated	43,739	47,015	+3,275
net sales
	Japan	23,817	25,228	+1,411
	Americas	11,229	12,175	+945
	Europe	6,749	7,143	+394
	ASEAN	4,218	4,352	+134
	Eliminations		△2,276	△1,885	+390

Excluding forex impact

+677	+1.5%
+1,411	+5.9%
△532	△4.7%
△197	△2.9%
△394	△9.4%
+390	△17.2%

FY2022			～
1st quarter
Japan
Americas
Europe
ASEAN
Eliminations
Forex
impact			～
FY2023
1st quarter

43,739

Increase(Decrease) Excludingforex impact	1,411
△532

△197 △394 390

+677 2,598

47,015

Copyright 2023 Fuji Seal Group

4

FY2023 1Q Financial Results (2) Net Sales by Segment by Region

	FY2022	FY2023	Year-on-year change			●Shrink Sleeve Labels: Sales increased due to recovery
			Excluding forex
(Millions of yen)	1st quarter	1st quarter	Change			from the impact of Corona and strong performance of
Rate of change	impact
					Rate of change		functional dairy products.
Japan	23,817	25,228	1,411	+5.9%	-
	●Pressure Sensitive Labels: Sales declined due to lower
Shrink label	12,889	13,398	509	+4.0%	-	Japan
demand for functional and planned product labels.
PS label	2,534	2,135	△398	△15.7%	-
	●Spouted Pouches: Sales increased due to strong sales of
Soft pouch	5,099	5,472	372	+7.3%	-
	refill pouches for daily necessities and beverages.
Machinery	477	1,152	675	+141.4%	-
Others	2,816	3,068	+252	+9.0%	-		●Machinery: Sales increased due to continued strong orders
Americas	11,229	12,175	945	+8.4%	△4.7%		for new units, mold changes and modifications, and parts.
Shrink label	9,315	10,103	787	+8.5%	△4.7%		●Shrink Sleeve Labels: Sales declined as customers'
PS label	377	505	127	+33.9%	+17.6%
	inventory adjustments continued as expected.
Soft pouch	69	77	7	+10.1%	△3.2%
	●Pressure Sensitive Labels: Sales increased due to the effect
Machinery	1,196	1,305	109	+9.1%	△4.1%	Americas
of price revisions.
Others	270	183	△86	△32.1%	△40.3%
Europe	6,749	7,143	394	+5.8%	△2.9%		●Others: Sales decreased due to progress in reducing low
Shrink label	3,377	4,335	958	+28.4%	+17.8%		profitability.
PS label	1,393	1,602	208	+15.0%	+5.5%		●Shrink Sleeve Labels: Sales increased due to the effect of
Soft pouch	20	0	△20 △100.0%	△100.0%
	price revisions.
Machinery	1,958	1,205	△753	△38.5%	△43.5%
Europe	●Pressure Sensitive Labels: Sales increased due to new
ASEAN	4,218	4,352	134	+3.2%	△9.4%
							business.
Shrink label	2,102	2,130	27	+1.3%	△11.0%
	●Machinery: Sales declined due to lower orders for Europe.
PS label	46	48	2	+6.1%	△6.8%
Soft pouch	1,948	2,112	164	+8.4%	△4.7%
	●Shrink Sleeve Labels and Spouted Pouches are subject to
Machinery	74	38	△35	△48.2%	△54.5%
Others	46	22	△24	△51.8%	△57.7%		improvement measures. The effects of the measures will
Eliminations	△2,276	△1,885	390	△17.2%		ASEAN
	be seen in the next quarter or later.
Consolidated net	43,739	47,015	3,275	+7.5%
		●Machinery: Sales declined due to a decrease in orders for
							new machines.

5