FY2023 Full Year Results

Supplementary Briefing Materials

Fuji Seal International, Inc.

May 13, 2024

Copyright 2024 Fuji Seal Group

Copyright 2024 Fuji Seal Group

Table of Contents

  1. Consolidated Results for FY2023
  2. Consolidated Forecasts for FY2024
  3. Our vision

●Trend over the past quarter century (Consolidated Net sales and Operating income) ●Review of the previous Mid-Term Management plan

●New Management Plan

- FSG.30

●FSG.30 - Growth strategy

  • Growth investment
  • KPI Targets
  • Financial strategy ・Current market valuation analysis ・ROE Improvement ➀②③
  • Business strategy ・Existing 4 businesses ・Americas

・Matrix management + Customer-oriented decision making ・Pharmaceutical business ・Deep IS ・Environment

- Human resorces strategy

- Initiatives to enhance corporate value

2

1. Consolidated result FY2023 (Ended March 31, 2024)

  • Consolidated net sales is increased. Profits at each stage exceeded the revised forecasts, partly due to the effects of measures in each region and the impact of foreign exchange rates.
  • Operating income exceeded the revised forecast by approximately 300M yen due to favorable shrink and pouch sales in the Japan region, which were boosted by good weather, and by approximately 100 million yen from improved shrink earnings in the ASEAN region.
  • Net income was higher than the revised announced figure due to the absence of some of the impairments that were initially expected to occur.

(Millions of yen)

FY2022 Full year

FY2023 Full year

Increase/Decrease

(Amount)

(%)

FY2022 （February Annoucement Revision）

Increase/Decr

ease

(Amount)

Net sales

184,035

196,624

+12,589

+6.8%

196,000

+624

Operating profits

8,194

13,309

+62.4%

12,600

(Operating Profit

+5,115

+709

Margin)

(4.5%)

(6.8% )

(+2.3pt)

(6.4%)

Ordinary profits

8,426

14,732

+74.8%

13,800

(Ordinary Profit

+6,305

+932

Margin)

(4.6%)

(7.5% )

(+2.9pt)

(7.0%)

Net profits

6,869

10,277

+49.6%

9,000

(Net Profit

+3,408

+1,277

Margin)

(3.7%)

(5.2% )

(+1.5pt)

(4.6%)

Foreign Currency

USD

Translation

Rate (average)

EUR

131.62

140.67

+6.9%

140.34

138.14

152.11

+10.1%

151.63

Note: For the fourth quarter results, Japan and Fuji Seal Packaging (Thailand)Co., Ltd.（FSPT） are for the period from April to March,

Americas, Europe, and ASEAN (excluding FSPT) are for January through December.

Copyright 2024 Fuji Seal Group

3

1. Consolidated result FY2023 (1) Net sales by region

  • Consolidated net sales increased 2.6% from the previous year on a local currency basis, impacted by Japan and the Americas.

FY2022

FY2023

Year-on-year

(Millions of yen)

Full year

Full year

change

Consolidated

184,035

196,624

+12,589

net sales

Japan

97,135

98,861

+1,726

Americas

50,149

57,882

+7,733

Europe

28,118

31,140

+3,022

ASEAN

17,460

18,089

+629

Eliminations

△8,828

△9,350

△522

Excluding forex impact

+4,840

+2.6%

+1,726 +1.8%

+4,009 +8.0%

+162 +0.6%

△535 △3.1%

△522-

FY2022

Full year

Japan

Americas

Europe

ASEAN

Eliminations

Forex impact

FY2023

Full year

～

184,035

Increase(Decrease)

Excluding forex impact

＋4,840

～

196,624

1,726

4,009

162

△535

△522

7,749

Copyright 2024 Fuji Seal Group

4

1. Consolidated result FY2023 (2) Net sales by Product by Region

FY2022

FY2023

Year-on-year change

(Millions of yen)

Full year

Full year

Change

Rate of change

Excluding forex impact

Rate of change

Japan

97,135

98,861

1,726

+1.8%

-

Shrink label

47,906

50,223

2,316

+4.8%

-

PS label

9,178

8,370

808

8.8%

-

△

△

Soft pouch

20,386

20,565

179

+0.9%

-

Machinery

6,831

6,648

182

2.7%

-

△

△

Others

12,832

13,053

+220

+1.7%

-

Americas

50,149

57,882

7,733

+15.4%

+8.0%

Shrink label

41,832

47,312

5,479

+13.1%

+5.8%

PS label

1,790

1,865

74

+4.2%

2.5%

Soft pouch

△

368

245

122

33.3%

37.6%

△

△

△

Machinery

5,211

7,331

2,120

+40.7%

+31.6%

Others

945

1,127

182

+19.3%

+11.6%

Europe

28,118

31,140

3,021

+10.7%

+0.6%

Shrink label

15,123

16,694

1,571

+10.4%

+0.3%

PS label

5,528

5,611

83

+1.5%

7.8%

△

Soft pouch

149

-

-

-

-

Machinery

7,318

8,834

1,515

+20.7%

+9.6%

ASEAN

17,460

18,089

629

+3.6%

△3.1%

Shrink label

8,175

8,782

607

+7.4%

+0.5%

PS label

220

186

34

15.5%

20.9%

Soft pouch

7,920

8,374

△

△

△

453

+5.7%

1.1%

△

Machinery

628

677

49

+7.9%

+0.9%

Others

515

69

446

86.6%

87.4%

△

△

△

Eliminations

△8,828

△9,350

△521

+5.9%

Consolidated net

184,035

196,624

12,589

+6.8%

Japan

Americas

Europe

ASEAN

Shrink Sleeve Label sales increased due to further price revisions, although volume was on a par with last

year.

Pressure Sensitive Label sales declined due to continued low demand for sales promotions,

In Soft Pouches, demand increase of beverage and price revisions in household contributed to increase sales

but total sales remained at the same level as last year due to a decline in demand for refills.

In Machinery, sales declined due to the postponement of some main machine to the next year, despite strong

sales of services and parts.

Shrink Sleeve Label sales increased due to a gradual recovery in demand from the first quarter of FY2023.

Pressure Sensitive Label sales decreased due to inventory adjustments by customers and delay in launching

new projects.

Machinery sales increased due to record-high sales in the 4th quarter on the back of strong sales of main

machines, parts, and services.

Other increased due to demand for final production following the withdrawal from the business.

Shrink Sleeve Label sales were on par with last year, as price revisions and other measures offset sluggish

demand due to inflation.

Sales of machinery increased due to continued strong demand in the pharmaceuticals and North American

markets.

In Shrink Sleeve Labels, despite a decline in volume, maintain the same level as last year due to the

contribution of price revisions.

In Soft Pouches, despite improvement in the second half, sales declined due to sluggish market demand.

Copyright 2024 Fuji Seal Group

Machinery sales increased slightly due to the contribution of unit sales and related services.

5

1. Consolidated result FY2023 (3) Operating income by region

  • Progress was made in recovery in all regions, and profits increased 58.5% from the previous year on a local currency basis.

FY2022

FY2023 Year-on-year

Excluding forex impact

(Millions of yen) Full year

Full year

change

Japan

In addition to price revisions for customers, portfolio

replacement and profitability improvement measures

have been implemented to increased profits.

Consolidated

8,194

13,309

+5,115

operating profits

Japan

7,623

8,779

+1,156

Americas

1,749

3,368

+1,619

Europe

△1,079

801

+1,880

ASEAN

94

482

+388

Eliminations

△193

△122

+71

+4,793

+58.5%

+1,156 +15.2%

+1,402 +80.1%

+1,806-

+357 +375.7%

+71-

Americas Europe ASEAN

High profitability Machinery (parts and service) and

final demand driven by withdrawal from unprofitable

businesses increased profits.

In Europe, achieved profitability through measures

such as focusing on structural reforms, reducing

material costs by strengthening purchasing functions,

improving productivity, and replacing its portfolio.

Profit increase due to productivity improvement and

fixed cost reduction effects from the policy

emphasizing profitability

Copyright 2024 Fuji Seal Group

6

1. Consolidated result FY2023 (4) Non-operating income, Ordinary Income and Net income

FY2022

FY2023

Increase/Decrease

【Non-operating income】

(Millions of yen)

Full year

Full year

・Foreign exchange gains (+1,407 million yen)

(Amount)

(%)

The main impact is the realization of Foreign exchange gains due to

Net sales

184,035

196,624

+12,589

+6.8%

valuation of foreign currency deposits and foreign currency fund settlements.

【Non-operating expenses】

Operating profits

8,194

13,309

+5,115

+62.4%

・Interest expenses (+282 million yen)

・Non-operating income

542

2,012

+1,470

+270.9%

Impact of increase in interest on debts due to higher interest rates, etc.

・Non-operating expenses

310

590

+279

+90.0%

【Extraordinary losses】

Ordinary profits

8,426

14,732

+6,305

+74.8%

・Impairment loss 498 million yen

・Extraordinary income

147

68

△

78

△

Impairment loss on Fixed assets of European subsidiaries, etc.

53.3%

・Reorganization expenses 293 million yen

・Extraordinary losses

840

938

+98

+11.7%

Before income taxes

7,733

13,862

+6,128

+79.2%

Mainly due to expenses related to the partial withdrawal from the

Net profits

Americas and ASEAN business

・Income taxes

864

3,584

+2,720

+314.6%

Income taxes

Net profits

6,869

10,277

+3,408

+49.6%

In the previous year, income taxes temporarily shrank due to a large amount

Foreign

Currency

USD

131.62

140.67

+6.9%

of deferred tax assets resulting from a resolution to close an overseas

Translation

EUR

138.14

152.11

+10.1%

subsidiary.

Copyright 2024 Fuji Seal Group

Rate (average)

7

1. Consolidated result FY2023 (5) B/S

(million-yen)

  • Working capital increased due to foreign exchange effects and revenue increase. Goodwill increased due to the acquisition of a domestic subsidiary.

Current assets

117,064

(+7,041 compared to the end of the

previous period)

Main Points of Increase/Decrease

・Cash and time deposits

+771

・Notes and accounts receivable

+6,018

・Inventories

△167

Fixed assets

75,620

(+5,639 compared to the end of the

previous period)

Main Points of Increase/Decrease

・Tangible fixed assets

+784

・Goodwill

+946

・Investments and other assets

+3,060

Total assets

192,684

(+12,680 compared to the end of

the previous period)

End of

End of

Rate of

FY2022

FY2023

change

Equity ratio

67.0%

68.6%

+1.6pt

Interest-bearing debt

12,578

7,406

△41.1%

D/E ratio

10.4%

5.6%

△4.8pt

Foreign

USD

Currency

132.70

141.83

+6.9%

Translation

EUR

Rate

141.47

157.12

+11.1%

Liabilities

60,542

(+1.109 from the end of the previous

period)

Main Points of Increase/Decrease

・Trade notes and accounts payable

△1,059

・Debts

△ 5,171

・Other Current liabilities

+2,309

Net assets

132,142

(+11,570 compared to the end of the

previous period)

Main Points of Increase/Decrease

Retained earnings

+8,360

Treasury stock

△ 1,076

Foreign currency translation adjustment +4,882

Copyright 2024 Fuji Seal Group

8

(million-yen)

1. Consolidated result FY2023 (6) Cash flows from investing activities and depreciation

  • Free cash flow turned positive from negative in the previous year as business performance recovered, This is the highest operating cash flow in the company's history.

Operating CF

Invest CF

FCF

19,086

18,847

19,930

18,000

【Main CF from operating activities】 ・Profit before income taxes 13,862

・Depreciation

8,469

・Change in working capital

△2,309

・Income taxes payment

△ 2,289

【CF from investing activities】

13,000

8,000

9,770

14,021

12,265

8,269

9,362

6,217

・Term deposit

△3,045

・Acquisition of fixed assets

△6,300

・Payments for acquisition of subsidiaries resulting in change in scope of

consolidation

△ 1,204

3,000

△2,000 △2,745

△7,000

△6,582

△7,804

△9,316

△12,000

△11,014

△10,568

2021

2019

2020

2022

2023

End of FY2022

End of FY2023

Capital expenditures

11,068

7,119

Depreciation and amortization

7,738

8,469

Copyright 2024 Fuji Seal Group

9

Copyright 2024 Fuji Seal Group

Table of Contents

  1. Consolidated Financial Results for FY2023
  2. Consolidated Financial Forecasts for FY2024
  3. Our vision

●Trend over the past quarter century (Consolidated Net sales and Operating income) ●Review of the previous Mid-Term Management plan

●New Management Plan

- FSG.30

●FSG.30 - Growth strategy

  • Growth investment
  • KPI Targets
  • Financial strategy ・Current market valuation analysis ・ROE Improvement ➀②③
  • Business strategy ・Existing 4 businesses ・Americas

・Matrix management + Customer-oriented decision making ・Pharmaceutical business ・Deep IS ・Environment

- Human resorces strategy

- Initiatives to enhance corporate value

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Fuji Seal International Inc. published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 06:07:09 UTC.