Q2 2021
Financial Results
(April 2021 to September 2021)
Repost: Management Policy -March26, 2021
<Vision>
・Create value for all stakeholders through sustainable growth.
・Strengthen the resilient business structure by responding to changes in the environment.
<Business Portfolio>
・Digital Solutions (DS, especially SEMI) and Life Sciences (LS) as the center of our business portfolio.
<Target>
・DS&LS: Exceed prior peak OP, ROE more than 10%, maximize ROIC (DS more than 25%, LS more than 12%) in FY24. ・Capital allocation:1st priority for future business growth, 50% shareholder return as a guideline.
<Strategy>
■ Digital Solutions
・SEMI: More than 8% of rev. CAGR (Double the growth of silicon wafer input by area). Scale and fields expansion including M&A.
・Display materials: Establish business structure as cash cow through selection and concentration. Aim for gradual profit growth.
・Edge Computing: Accelerate sales growth.
■ Life Sciences
・Revenue: more than 100 billion yen, ROS: 20%
・Sales growth by business expansion through customer pipelines, especially in CDMO and CRO. Strengthen the strategic link among Life Sciences groups for sustainable growth.
■ Petrochemical (Elastomers, Plastics)
・Promote structural reforms of Elastomers business.
**Please see the material of Management Policy announced on March 26, 2021 for the detail. | 1 |
Summary
<21H1 Result>
- All of sales, core OP, and profit increased, exceeding our projection (announced in May 2021) and recording high growth rate YoY.
・This time, full-year projection for FY21 was revised upward with sales of 346.5 billion yen (+28.5 billion to projection in May) and core OP of 52.5 billion yen (+9.5 billion yen). Core OP of the projection includes 6 billion yen of valuation profit from the Inpria acquisition expected in H2.
- Both sales and profits increased significantly YoY due to favorable demand conditions. We secured a high margin.
- SEMI achieved sales growth of +13% YoY. In addition to existing products, EUV photoresist marked more than double sales growth from the previous year.
・In the revised full-year projection, the sales of SEMI is expected to grow +15% YoY. Core OP is also expected to increase significantly even without the valuation profit of Inpria . The overall projection of Digital Solutions is revised upward regardless of a downward revision of the Edge Computing business.
・Sales for H1 achieved +29% YoY growth. In addition to CDMO and CRO, Bioprocess materials and IVD expanded sales. Core OP increased +20% YoY though CDMO was impacted from advanced investments and adjustment in manufacturing capacity utilization due to materials supply shortage, etc.
・Revised full-year projection expects that each sub-segment continues to grow and that CDMO's manufacturing operation is expected to improve to the normal level from October. OP margin ratio of H2 is expected to be 2 digits with continuous sales expansions. The process of capacity expansion for CDMO is in progress and planned to start the engineering run from the end of Q3 in this fiscal year.
- We announced a business transfer agreement for Elastomers business on May 11, 2021. Elastomers business is classified as a discontinued business from FY21. The process of transferring the business is in progress toward the closing.
・We announced the acquisition of Inpria, the U.S. manufacturer of metal-based photoresists for EUV lithography in September 2021 and completed the acquisition process in October. Acquisition price of additional shares was 46.7billion yen.
-
Annual dividend for FY21 ending March, 2022 will be increased from 60 yen to70 yen. (35 yen for each interim dividend and term-end dividend)
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Summary 1 - 21H1 Result vs Original Projection
(100Mil JPY) | |||||||
21H1 | FY21 Pro | Progress | |||||
Act | (as of May 11) | ||||||
Sales | 1,682 | 3,180 | 53% | ||||
Consolidated | Core Operating Profit | 231 | 430 | 54% | |||
Operating Profit | 229 | 430 | 53% | ||||
Profit, attributable to owners of parent | 175 | 270 | 65% | ||||
Digital Solutions | Sales | 806 | 1,600 | 50% | |||
Core Operating Profit | 196 | 365 | 54% | ||||
Life Sciences | Sales | 337 | 670 | 50% | |||
Core Operating Profit | 19 | 60 | 32% | ||||
Plastics | Sales | 478 | 860 | 56% | |||
Core Operating Profit | 35 | 60 | 58% | ||||
Others/Adjustment | Sales | 61 | 50 | 123% | |||
Core Operating Profit | -19 | -55 | - | ||||
Exchange rate (JPY/USD) | 110 | 106 |
*Core OP is calculated by excluding profit or loss caused by non-recurring factors from OP. *Discontinuing business is not shown on the table, except for Profit, attributable to owners of parent.
Over all, strong progress compared to the full-year projection announced in May 2021.
In Digital Solutions, SEMI expanded significantly and Display materials performed well.
Life sciences performed mostly in line with the original projection.
Plastics also made steady progress thanks to the recovery in demand.
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Summary 2 - YoY
(100Mil JPY) | |||||||||
20H1 | 21H1 | YoY | 21Q1 | 21Q2 | QoQ | ||||
Sales | 1,392 | 1,682 | +21% | 823 | 859 | +4% | |||
Consolidated | Core Operating Profit | 167 | 231 | +38% | 126 | 105 | -16% | ||
Operating Profit | 142 | 229 | +61% | 111 | 117 | +5% | |||
Profit, attributable to owners of parent | -7 | 175 | - | 82 | 94 | +15% | |||
Digital Solutions | Sales | 738 | 806 | +9% | 393 | 413 | +5% | ||
Core Operating Profit | 169 | 196 | +16% | 104 | 91 | -12% | |||
Life Sciences | Sales | 262 | 337 | +29% | 163 | 174 | +6% | ||
Core Operating Profit | 16 | 19 | +20% | 12 | 8 | -36% | |||
Plastics | Sales | 326 | 478 | +47% | 238 | 240 | +1% | ||
Core Operating Profit | 7 | 35 | +431% | 19 | 16 | -14% | |||
Others/Adjustment | Sales | 67 | 61 | -8% | 29 | 32 | +8% | ||
Core Operating Profit | -25 | -19 | - | -9 | -10 | - | |||
*Discontinuing business is not shown on the table, except for Profit, attributable to owners of parent.
YoY:Both sales and OP significantly increased.
Digital Solutions: Both sales and OP increased mainly due to increased sales of SEMI.
Life Sciences: Sales and OP increased due to the growth in each sub-segment (CDMO, CRO, BPM and IVD)
Plastics: Both sales and OP increased due to increase in sales volume in response to recovery in demand from COVID-19.
QoQ:Sales increased, OP decreased.
Digital Solutions: Sales increased mainly due to increased sales of SEMI. OP decreased due to timing of expenses incurred compared to Q1.
Life Sciences: Sales continued to increase. OP decreased due to the increased costs in CDMO.
Plastics: Basically performed well as Q1, though OP decreased due to inventory effects.
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JSR Corporation published this content on 08 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2021 06:27:02 UTC.