Fuji Seal International : FY2022 Second Quarter Financial Results Supplementary Briefing Materials

FY2022 Second Quarter Financial Results

Supplementary Briefing Materials

Fuji Seal International, Inc.

November 10, 2022

Copyright 2022 Fuji Seal Group

Table of Contents

FY2022 Second Quarter (Cumulative) Results

・FY2022 Second Quarter (Cumulative) Results ・Dividends of surplus

Business Strategy Topics

・Continue priority measures

・Toward Expanding Sales of Environmentally Friendly Products

・Shrink: RecShrink™, Water-based Flexo Printing, New Shrink Tunnel (Vapor)

・PSL: linerless label & labeler

New Environmental, Social, and Governance Initiatives

・ESG survey ・On-Site classes

Copyright 2022 Fuji Seal Group

2

Key Points of FY2022 the Second Quarter (Cumulative) Results

• In the first half of the fiscal year, while net sales increase year-on-year, each level of profit decreases.
• Compared to the full-year announced figures, although sales are in line with the plan, the progress of profits is somewhat behind schedule.

	FY2021	FY2022	Increase/Decrease	FY2022	Vs. Announcement
			Annouced full
(Millions of yen)	2nd quarter	2nd quarter
(Amount)	(%)	year	Progress rate

Net sales			88,339	90,909	+2,569	+2.9%		179,000
Operating profits			7,996	4,729		△40.9%		11,100
(Operating Profit			△3,266
Margin)			(9.1%)	(5.2%)		(△3.8pt)		(6.2%)
Ordinary profits			8,223	5,106	△3,116	△37.9%		11,000
(Ordinary Profit Margin)
	(9.3%)	(5.6%)		(△3.7pt)		(6.1%)
Net profits			5,587	3,486	△2,100	△37.6%		6,300
(Net Profit Margin)
	(6.3%)	(3.8%)		(△2.5pt)		(3.5%)
Foreign Currency	USD		107.82	123.14		+14.2%		125.00
Translation
EUR		129.89	134.39		+3.5%		135.00
Rate (average)

[N.B.] Regarding the second quarter results, the Japanese and FSPT results from April to September,

Figures for the Americas, Europe, and ASEAN (excluding FSPT) are January-June results.

50.8%

42.6% (△1.0pt)

46.4% (△0.5pt)

55.3% (+0.3pt)

△1.5% △0.5%

Copyright 2022 Fuji Seal Group

3

FY2022 2nd Quarter (Cumulative) Results (1) Net Sales by Region

• Consolidated net sales decreased slightly on a basis excluding the impact of the exchange rate.

By region, sales increased YoY in Japan, the Americas, and Europe (excluding the impact of FSCH), and sales decreased in ASEAN.

		FY2021	FY2022	Year-on-year
	(Millions of yen)	2nd quarter	2nd quarter	change
Consolidated	88,339	90,909	+2,569
net sales
	Japan	48,453	49,172	+719
	Americas	20,765	23,914	+3,149
	Europe	14,797	13,858	△938
	ASEAN	8,105	8,317	+211
	Eliminations	△3,782	△4,355	△572

Excluding forex impact

△1,905 △2.2%

+719 +1.5%

+174 +0.8%

△1,403 △9.5%

△823 △10.2%

△572 +15.1%

FY2021

2nd quarter Japan

Americas

Europe

ASEAN

Eliminations

Forex impact

FY2022

2nd quarter

～

～

88,339

Increase(Decrease) forex Excluding impact

△1,905

90,909

719

174

△1,403

△823

△572

4,474

Europe	13,061	13,858	+797	+333	+2.6%
(excluding FSCH)

[N.B.] FSCH (formerly PAGO Switzerland) is not included in sales for the first half of this fiscal year due to the transfer of its business in July last year.

Copyright 2022 Fuji Seal Group

4

FY2022 2nd Quarter (Cumulative) Results (2) Net Sales by Segment by Region

	FY2021	FY2022	Year-on-year change			●Shrink labels increased slightly due to a recovery in
			Excluding forex
(Millions of yen)	2nd quarter	2nd quarter	Change			the beverage sector.
Rate of change	impact
					Rate of change		●Increased sales of soft pouches due to increased
Japan	48,453	49,172	719	+1.5%	-
	Japan	demand for larger refills and increased use of pouch
Shrink label
24,831	25,387	556	+2.2%	-			containers.
PS label	5,177	4,998	△179	△3.5%	-			●Other (contract packaging) sales declined due to a
Soft pouch	8,791	10,348	1,557	+17.7%	-			reaction to special demand for Corona.
Machinery	2,759	2,343	△416	△15.1%	-			●Shrink labels maintained revenue growth, however
Others	6,893	6,094	△798	△11.6%	-
		growth was limited due to the impact of raw
Americas	20,765	23,914	3,149	+15.2%	+0.8%
		material shortages caused by the accident involving
Shrink label	16,538	19,733	3,194	+19.3%	+4.5%
		raw material manufacturers.
PS label	570	943	373	+65.5%	+44.9%		Americas
	●Sales of PS labels increased due to the contribution
Soft pouch	252	142	△110	△43.7%	△50.7%
	of new projects.
Machinery	2,743	2,265	△477	△17.4%	△27.7%
	●Machinery sales declined due to the impact of
Others	660	829	169	+25.6%	+10.0%
		customer delays.
Europe	14,797	13,858	△938	△6.3%	△9.5%
								●Sales of shrink labels increased due to strong orders.
Shrink label	6,958	7,544	585	+8.4%	+4.8%
PS label	3,893	2,672	△1,220	△31.4%	△33.7%		●While sales of PS labels declined due to the
Soft pouch	88	66	△21	△24.7%	△27.2%	Europe	business transfer in Switzerland, sales increased
Machinery	3,856	3,575	△281	△7.3%	△10.4%		excluding this impact.
ASEAN	8,105	8,317	211	+2.6%	△10.2%			●Machinery sales declined due to the impact of sales
Shrink label	3,669	4,001	331	+9.0%	△4.5%		to the Americas.
PS label	98	67	△31	△31.6%	△40.1%		●Sales of shrink labels decreased due to a reduction
Soft pouch	4,033	4,036	3	+0.1%	△12.4%
Machinery	189	96	△92	△48.8%	△55.2%	ASEAN	in orders from a large customer in Indonesia.
Others	115	115	0	+0.6%	△12.0%		●Orders for soft pouches continue to decline due to
Eliminations	△3,782	△4,355	△572	+15.1%
			price revisions.
Consolidated net	88,339	90,909	2,569	+2.9%

5